Why Oilfield Services Giant Schlumberger Shares Are Diving Today

Oilfield services behemoth Schlumberger N.V. SLB shares are down Tuesday. 

The downbeat movement comes after Saudi Arabia’s state-owned Aramco suspended its plan to boost its maximum crude production capacity. 

On Tuesday, Aramco announced its decision to halt plans to increase crude production capacity from 12 million barrels daily to 13 million barrels daily.

Also Read: Aramco Halts Plan To Increase Maximum Crude Production Capacity Amid Oil Demand Uncertainty

The announcement coincides with growing concerns about the global oil demand outlook, especially with the global shift towards decarbonization. The International Energy Agency (IEA) projected an increase in global oil demand by 2.3 million barrels per day in 2023 to 101.7 million barrels per day in its December annual report but also acknowledged a weakening macroeconomic climate.

Meanwhile, Schlumberger announced a significant step toward fully autonomous drilling operations at Equinor ASA‘s EQNR Brazilian Peregrino C platform. 

SLB digital technologies for surface automation, autonomous on-bottom drilling, and directional drilling were combined to enable 99% of a 2.6-kilometer section to be drilled in autonomous control mode.

Price Action: SLB shares are trading lower by 7.6% to $49.16 on the last check Tuesday.

Photo by Rab Lawrence via Flickr