The North American shale boom will cool off this year as drillers rein in spending amid lower prices, said Schlumberger CEO Paal Kibsgaard, who predicts "more moderate growth in US shale production in coming years." Kibsgaard expects shale drillers to focus on completions instead of drilling new wells.

Permian Basin pipeline capacity is only one factor that could undermine the bright outlook for US shale oil output, said Schlumberger CEO Paal Kibsgaard, citing difficulties including maximizing production levels.

Infrastructure bottlenecks in the Permian Basin will likely hurt production growth, reduce wellhead prices and discourage investment in the region until new capacity comes online by the end of next year, said Schlumberger Chairman and CEO Paal Kibsgaard. The slowdown could take a toll on oilfield service companies and the hydraulic fracturing market, Kibsgaard added.

Schlumberger and Baker Hughes anticipate a slowdown in production investments in North America as US drillers face pressure to improve returns, foreboding a challenging and uncertain fourth quarter for the oilfield services industry. However, Schlumberger Chairman and CEO Paal Kibsgaard says prices could pick up in the long term as slower spending by producers in North America and elsewhere helps stabilize the oil market.

Schlumberger is anticipating a deficit in the global supply of crude oil if demand continues to rise at a steady pace. "As the opportunities for activity high-grading are exhausted, we should see a further acceleration in the global production decline," said Chairman and CEO Paal Kibsgaard.