The prosperity of the oil service sector continues to improve

　　Affected by the EU's ban on Russian oil, the "OPEC+" capacity adjustment plan, and the United States' policies to curb inflation, international oil prices have fluctuated relatively recently
.
The international oil price broke through the $100/barrel mark, and the domestic No.
92 gasoline also entered the "9 yuan era"
.
In this context, domestic energy giants have increased capital investment, and the prosperity of the oil service sector has continued to improve
.
In the nearly two months from April 26 to June 22, the oil service sector rose by 19.
45%
.

　　International institutions optimistic about future oil prices

　　Since the conflict between Russia and Ukraine, the international oil price has been fluctuating all the way up
.
The settlement price of Brent crude oil futures (Brent) on the Intercontinental Exchange once exceeded US$139/barrel, and the settlement price of West Texas Light Crude Oil Futures (WTI) on the New York Mercantile Exchange was once close to US$130/barrel, both of which have been refreshed since 2008.
new high
.

　　Goldman Sachs pointed out in a report on June 6 that oil prices may rise further in the future, predicting that the price of Brent crude oil will be $140/barrel in the third quarter, $130/barrel in the fourth quarter, and $130/barrel in the first quarter of 2023
.

　　Citibank and Barclays also both raised their oil price forecasts
.
Citigroup raised its forecast for Brent crude oil prices in the second quarter by $14 a barrel to $113 a barrel, up from an earlier forecast of $99 a barrel
.
Barclays expects Brent oil prices to average $111 a barrel this year and next, up $11 a barrel and $23 a barrel, respectively
.

　　Domestic energy giants increase investment

　　Under high oil prices, oil companies are making considerable profits and have ample cash flow, which makes them more motivated to increase capital expenditures
.

　　The 2021 "Three Barrels of Oil" annual report shows that in 2022, Sinopec plans to increase capital expenditure by 18% to 198 billion yuan, a record high; CNOOC plans to spend 90 billion to 100 billion yuan, a slight increase over 2021; PetroChina The planned expenditure is 242 billion yuan, down slightly from 251 billion yuan in 2021
.

　　However, recently, PetroChina announced to increase investment and will increase its investment in June to continue to increase oil and gas reserves and production in domestic exploration and development; it will make every effort to promote major upstream and downstream projects, and strive to sprint towards the production target
.
On the basis of their plan to increase investment in domestic exploration and development at the beginning of the year, they completed the plan to accelerate domestic oil and gas exploration and development in March, and further increased the scale of investment to increase the deployment of 3D seismic workload and strive to obtain new exploration breakthroughs; at the same time, they actively expanded The scale of oil and gas production capacity construction, and strive to achieve the annual oil and gas production target
.

　　Data show that from January to May, the equivalent of PetroChina's domestic oil and gas production achieved a year-on-year increase
.
As of June 15, domestic exploration and development businesses such as Daqing Oilfield have completed 3,105 wells and put into production 2,812 wells, with a built-in production capacity of 967,000 tons, all running ahead of schedule
.

　　The increase in investment by domestic energy giants will provide more orders for oil service companies and will continue to boost the oil service industry
.

　　The prospect of the oil service sector is worth looking forward to

　　Schlumberger, Halliburton and Baker Hughes, the three major international oil service providers, all stated in their performance reports last year that with the rebound in energy demand, the global oil service market is re-entering an upward cycle, and has a strong interest in the development of the industry this year.
Be optimistic
.

　　Schlumberger CEO Olivier Le Peuch believes that the oilfield services industry is on the verge of a strong upward cycle
.
"Oil demand growth is expected to exceed pre-epidemic peaks, coupled with tight supply and falling inventories, oil and gas producers will see an increase in capital spending this year
.
" He expects double-digit growth in overall revenue this year, with onshore, offshore and North American The shale business will be the main support
.

　　Halliburton also pointed out that the fundamentals of the oil service industry will maintain steady growth, which will stimulate and benefit from the recovery of the company's North American shale and overseas oil service businesses
.

　　According to the US financial information website "Market Watch", the compound annual growth rate of the global oil service market will reach 6.
7% in the next five years, and the market size will reach 303.
04 billion US dollars by 2027
.

　　Industry insiders believe that with the soaring oil price, which also indirectly boosts the investment enthusiasm in the upstream of oil service, the oil service industry is expected to usher in a revaluation of value
.

　　Debon Securities pointed out that under the high oil price, oil and gas companies will continue to release active capital expenditures in the next three years with relatively ideal investment income, and they can pay attention to the oil service equipment targets that benefit from the increase in capital expenditures of oil and gas companies
.
Guotai Junan also pointed out that oil prices are rising, and the demand for unconventional oil and gas equipment is rising, and the target of oil service equipment is worthy of attention
.
Founder Securities recommends paying attention to the targets of leading oil and gas companies and oil service companies
.