Schlumberger, Limited (NYSE:SLB)

CAPS Rating: 5 out of 5

An oilfield services company, supplying technology, project management and information solutions that optimize performance in the oil and gas industry. It consists of two business segments: Schlumberger Oilfield Services and WesternGeco.


Player Avatar TempoAllegro (30.25) Submitted: 11/27/2012 7:34:17 AM : Outperform Start Price: $69.16 SLB Score: -12.22

Schlumberger is an R&D machine. In oilfield services, this has and will continue to win the day for years to come - perhaps you have heard that Schlumberger spends more on research than all of its competitors combined?

Imagine the scale of a company with 25 research facilities, operations in 85 countries, and workers from 140 countries. They are known for being neutral politically and just doing a second to none excellent job, so you would be forgiven for confusing their blue uniforms with the U.N. In some of those difficult countries that happen to have oil, it lands them contracts.

Intelligent drilling almost requires Schlumberger, and they have expertise in reservoir characterization and seismic mapping, subsea and deepwater operations, and dealing with technical challenges. If you got oil in a difficult place, or a combination of challenges, Schlumberger needs to be your one stop oil services shop.

In this new world of precision drilling post Macondo-Deepwater Horizon, there is no room for error, the expertise that Schlumberger has must become more valuable over time.

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