Speculating On Tech Stocks? Why Not Consider Schlumberger Stock Instead

SourceForbes
SectorFinancial Markets
CountryMiddle east

Close-up of logo for petroleum service company Schlumberger on equipment, August 16, 2019. (Photo by ... [+] Smith Collection/Gado/Getty Images) With the pandemic causing a paradigm shift in energy demand, Schlumberger (NYSE: SLB) has restructured its organization to focus on digital solutions for the existing oil & gas industry and the budding renewable energy sector. As crude oil prices are expected to remain subdued for a couple of years, there is a rising demand for technology solutions to enhance asset productivity and reduce capital costs.

In Q2 2020, Schlumberger signed an agreement with Exxon Mobil to jointly develop and implement digital drilling solutions. Later, Schlumberger partnered with Honghua Electric, a Chinese drilling equipment manufacturer, to integrate its DrillOps software with all new Honghua rigs. With the company identifying digital innovation and new energy as two areas of future growth, Trefis believes that SLB is a good pick to speculate on the technology solutions business. We highlight the historical trends in...read more...