Good contracts will indeed keep coming. The oil field services companies are still reporting very good conditions that are continuing to gain momentum. A small snippet from the recent Schlumberger 4Q call:
Looking across this wide baseload of activity, a significant portion is taking place offshore, where capital expenditures will continue their growth momentum in 2024. As a result, the rig count will continue to rise, mainly in the Middle East and Asia, responding to a strong FID pipeline in both shallow and deepwater. All in all, we see the potential for more than $100 billion in global offshore FIDs in both 2024 and 2025, underscoring the enduring strength of the offshore markets and supporting a very favorable subsea outlook for years to come.In this context, although geopolitical tensions persist in several regions, we do not expect any significant impact to activity in 2024, absent further escalation.
Additionally, although we have witnessed short-term commodity price fluctuate over the past few months, long-cycle investment in the Middle East, offshore and gas markets remain decoupled from short-term pricing, which will continue to support the resilience of these markets.
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