Schlumberger sees no pickup in oilfield activity before 2017

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Reuters) - Schlumberger Ltd Chief Executive Paal Kibsgaard said a "significant" recovery in oilfield activity was not expected until 2017, and he indicated that the company might struggle to meet analysts' estimates for its current-quarter profit.

Although North American oil companies have scaled back spending, their output remains high as they steer drilling rigs to the most prolific shale spots and frack wells more intensely.

Production in North America and outside of OPEC is resilient because oil companies, looking to maximize cash flow, are keeping "taps wide open," Kibsgaard said.

"We still expect positive movement in oil prices during 2016 with specific timing being a function of the shape of the non-OPEC decline rates," he said.

Like its customers, Schlumberger has been cutting costs.

The company said on Thursday it had laid off 10,000 employees in the fourth quarter, taking its total job cuts to 34,000, or 26 percent of its workforce, since November 2014.

Kibsgaard, however, said he was "optimistic" the company would not have to cut more jobs in the current oil downturn.

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