SLB, Baker Hughes CEOs warn Iran war will reshape global energy markets

The CEOs of energy service giants SLB and Baker Hughes have warned that the ongoing conflict in Iran, which has disrupted 9 million barrels per day of oil transit through the Strait of Hormuz, represents a structural shift rather than a temporary disruption. This conflict is forcing nations to rethink energy security, exploration investment, and supply chain diversification. Both companies reported financial impacts, with SLB seeing revenue and net income drops in its Middle East and Asia segment, and Baker Hughes expressing uncertainty about meeting its full-year guidance. The situation is further complicated by Qatar's force majeure on gas exports. Experts estimate infrastructure repairs could cost $58 billion. In response, SLB and Baker Hughes anticipate increased upstream investment as countries seek to reduce reliance on Middle Eastern supply routes, with North America expected to benefit from accelerated LNG projects. While the near-term outlook is challenging, with earnings declines anticipated, the long-term prospect of a significant investment cycle in the oilfield services sector, driven by diversification and infrastructure rebuild, could lead to substantial revenue growth for companies like SLB and Baker Hughes into the late 2020s. Investors are advised to watch for the post-crisis investment cycle's alignment with industry projections.

(Source：Crypto Briefing)