SLB: A Rigged Game Worth a Look?

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So, SLB (SLB +3.13%). It’s a name that doesn’t exactly roll off the tongue, does it? Sounds like a particularly obscure Scandanavian death metal band. But it’s Schlumberger, one of those colossal oil services companies, and lately, it’s been doing rather nicely. Up 25% this year, which, in the generally gloomy world of energy, is a bit like finding a tenner in an old coat. And the reason, at least partially, is Venezuela. It’s a country with a history so colourful, so wonderfully chaotic, it makes a soap opera look like a tax return. And suddenly, it seems, things might – just might – be shifting.

Now, before we get carried away picturing oil gushing forth and everyone becoming instantly prosperous, let’s take a little peek under the hood. The stock’s had a bit of a wobble recently, a 3.3% dip over five days. Not a catastrophe, mind you, but enough to suggest that the truly spectacular gains might be… tempered. A savvy investor, and I consider myself one, likes a little breathing room. A chance to acquire shares without feeling like they’re being snatched from under their nose.

Sizing Up the Venezuelan Puzzle

Venezuela, as you may or may not know, possesses the largest proven oil reserves in the world. An astonishing 303 billion barrels. Which is, frankly, a lot of oil. Enough to make Saudi Arabia a little twitchy, perhaps. But having all that black gold is a bit like owning a magnificent yacht and then forgetting to buy an engine. It’s all very well, but it doesn’t actually go anywhere. For years, Venezuelan infrastructure has been… let’s say, underappreciated. Back in 2014, they were running around 80 rigs. Today? A handful. It’s a rather stark illustration of neglect.

Chevron is already making waves down there, having remained operational even when things got… complicated. And SLB, being the canny operator it is, is poised to jump in the moment the green light flashes. It’s a credibility play, really. They have the relationships, the technology, the know-how. They’re basically the mechanics the country needs to get its oil engine sputtering back to life.

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Beyond the South American Horizon

Now, don’t get me wrong, Venezuela is interesting. A potentially lucrative, if slightly hair-raising, opportunity. But to pin all your hopes on it would be, shall we say, unwise. The market, being the remarkably efficient beast it is, has likely already factored in a good chunk of that Venezuelan optimism. The real story with SLB, I suspect, is a little more nuanced.

They’ve been quietly transforming themselves. Acquired ChampionX, for starters. Which sounds like a particularly aggressive brand of washing powder, but is, in fact, a company specialising in digital solutions. They’re dabbling in artificial intelligence, have a partnership with Nvidia (those clever people who make graphics cards and now seem to be running the world), and are even venturing into the data center solutions market. It’s a bit like discovering your plumber is also a concert pianist. Unexpected, but rather impressive.

It’s a sign of adaptability. A recognition that the energy landscape is shifting. And while Venezuela might offer a short-term boost, it’s these longer-term investments – in technology, in digital infrastructure – that truly position SLB for the future. It’s a long game, of course. But as any seasoned investor knows, the best returns are rarely found in the quick wins. They’re found in the companies that are willing to reinvent themselves, to embrace change, and to avoid becoming relics of a bygone era. And that, my friends, is something SLB appears to be doing.

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2026-02-05 02:52