Top Oil Service Firms Could Easily Replace Lost Russian Business

Schlumberger, the top oilfield service firm by revenue, gets between 5% and 6% of its revenue from Russia, says Richard Spears, vice president of consultants Spears & Associates.

Liz Hampton, Reuters

U.S. oilfield companies could withdraw from Russia and easily replace the lost revenue with an expected boom in new oil and gas drilling elsewhere, a top oilfield service expert said on March 1.

Russia’s invasion of Ukraine has prompted Western energy companies to suspend operations or withdraw, leaving behind investments. Russia is among the world’s largest oil and gas producers that primarily relies on home-grown service providers.

The surge in oil prices will lift global spending on oilfield equipment and services by 30% this year over last to $260 billion, double the 14% increase previously forecast, Richard Spears, vice president of consultants Spears & Associates, said in an interview. Market growth will be the highest 2006.

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