Core Viewpoint - The international oil prices are expected to maintain a medium to high level in 2025, with steady growth in oil and gas demand, providing business opportunities for the oil service industry [1] Group 1: Industry Outlook - The oil service industry is anticipated to have good business opportunities as long as oil prices remain supported [1] - Recent disclosures from international oil companies regarding their 2026 capital expenditure plans indicate a trend of "steady increase" [1] Group 2: Demand and Orders - Domestic oil service companies report sufficient orders on hand and intentions for 2026, suggesting a stable growth in oil and gas demand [1] - The combination of the latest international situation and oil and gas resource development indicates a high probability of stable demand growth, benefiting oil service companies [1]

Core Viewpoint - The oil service industry is expected to maintain a favorable business environment due to stable oil prices and increasing demand for oil and gas, supported by rising capital expenditures from upstream oil companies [1][3]. Group 1: Industry Outlook - The international oil price is currently above $65 per barrel, with geopolitical uncertainties providing some support [2]. - Upstream capital expenditures are expected to increase, leading to accelerated development in oil fields and related services such as perforation, fracturing, logging, and completion [2][5]. - Oil service companies are seeing a rise in order volumes, particularly from international oil companies, indicating a positive trend for the industry [3][4]. Group 2: Company Developments - Chevron plans to maintain its 2026 capital expenditure between $18 billion and $19 billion, a 22% increase from 2025, with a significant portion allocated to upstream activities [2]. - Phillips 66 has raised its 2026 capital budget to $2.4 billion, reflecting a broader trend of increasing investment in oil exploration and production [2]. - Companies like Jereh and China National Petroleum Engineering are securing significant contracts, indicating robust demand for oil service capabilities [4].

Core Viewpoint - CNOOC Services (02883) saw a nearly 5% increase, with a current rise of 3.91% to HKD 7.97, and a trading volume of HKD 140 million, driven by geopolitical tensions affecting oil prices [1] Group 1: Market Impact - U.S. President Trump's intensified rhetoric against Iran has raised market concerns about potential U.S. intervention, leading to a spike in international oil prices, reaching a two-month high [1] - LSEG data indicates that geopolitical tensions in Iran and Venezuela have supported global benchmark prices, with the premium of Brent crude over Dubai crude reaching its highest level since July [1] Group 2: Industry Outlook - According to a report from Everbright Securities, significant upstream capital expenditure in China is expected to ensure growth in upstream production and reserves, benefiting oil service companies [1] - The "Three Oil Giants" are actively responding to the Belt and Road Initiative, with their overseas business expansion gradually deepening, allowing subsidiary engineering companies to leverage the advantages of their parent companies and seize new opportunities abroad, likely leading to sustained breakthroughs in overseas business development [1]

Core Viewpoint - CNOOC Services (02883) has seen a nearly 5% increase in stock price, currently trading at HKD 7.97, with a transaction volume of HKD 140 million, driven by rising international oil prices due to geopolitical tensions involving Iran and Venezuela [1] Group 1: Market Impact - U.S. President Trump's strong rhetoric against Iran has raised market concerns about potential U.S. intervention, leading to a spike in international oil prices, reaching a two-month high [1] - LSEG data indicates that the premium of Brent crude over Dubai crude has risen to its highest level since July, supported by geopolitical tensions [1] Group 2: Industry Outlook - Everbright Securities reports that significant upstream capital expenditure in China will support the growth of upstream production and reserves, benefiting oil service companies [1] - The "Three Oil Giants" are actively responding to the Belt and Road Initiative, with overseas business layouts gradually deepening, allowing subsidiary engineering companies to leverage parent company advantages for new opportunities abroad [1]

Group 1 - The U.S. government announced a 25% tariff on any country doing business with Iran, indicating heightened geopolitical tensions [1] - The International Energy Agency predicts a global oil supply surplus of 3.84 million barrels per day by 2026, leading to a systemic decline in oil prices [1] - If U.S.-Iran conflict escalates, Iranian oil exports may be disrupted, exacerbating global supply tightness [1] Group 2 - Approximately 13 million barrels of oil are transported daily through the Strait of Hormuz, accounting for about 31% of global maritime oil transport [2] - Concerns over the closure of the Strait of Hormuz could increase oil prices by several dollars, with a complete closure potentially raising prices by $10 to $20 per barrel [2] - If the conflict leads to a complete halt of Iranian oil exports, a global supply gap of over 2 million barrels per day could occur, potentially driving Brent crude prices to $90-100 per barrel if sustained for six months [2] Group 3 - The geopolitical conflict is expected to boost oil price expectations, leading to increased exploration and development spending by oil and gas companies, which directly benefits oil service equipment demand [2]

Core Viewpoint - The company is committed to strengthening its oil service operations while actively developing clean energy and CCUS (Carbon Capture, Utilization, and Storage) business, focusing on CO2 applications in oil fields [1] Group 1: Company Strategy - The company emphasizes the importance of solidifying its oil service segment as part of its strategic direction [1] - The development of clean energy and CCUS is a significant focus area for the company [1] Group 2: CCUS Business - The CCUS business currently revolves around the application of carbon dioxide in oil fields, including techniques such as CO2 enhanced oil recovery, fracturing, and injection services [1] - The company has not yet ventured into carbon capture technology within its CCUS initiatives [1]

Core Viewpoint - The company is committed to strengthening its oil service operations while actively developing clean energy and CCUS (Carbon Capture, Utilization, and Storage) business, focusing on CO2 applications in oil fields [1] Group 1: Company Strategy - The company emphasizes the importance of solidifying its oil service segment as part of its strategic direction [1] - The CCUS business currently focuses on CO2 applications in oil fields, including CO2 enhanced oil recovery, fracturing, and injection services [1] - The company has not yet ventured into CO2 capture technology [1]

Group 1: Oil and Gas Industry - The geopolitical tensions in Venezuela and Iran have increased, leading to a rise in the geopolitical risk premium for oil, resulting in higher oil prices. As of January 9, 2026, Brent and WTI crude oil futures closed at $63.02 and $58.78 per barrel, reflecting increases of 3.7% and 2.5% respectively compared to the previous week. The long-term supply-demand dynamics for crude oil remain favorable, supporting a positive outlook for major oil companies and oil service sectors [5]. Group 2: Utilities Sector - The SW Utilities sector index rose by 2.54%, ranking 23rd among 31 SW primary sectors. In comparison, the CSI 300 index increased by 2.79%, the Shanghai Composite Index by 3.82%, the Shenzhen Component Index by 4.4%, and the ChiNext Index by 3.89%. Within the sub-sectors, thermal power increased by 2.4%, hydropower by 0.7%, photovoltaic power by 3.9%, wind power by 2.6%, comprehensive energy services by 2.51%, and gas by 4.8% [5]. Group 3: Internet and Media Industry - The animated drama sector is expected to take over from live-action short dramas, with a significant release of IP value anticipated. The industry has shown strong growth in 2025, and it is projected that the market will continue to expand rapidly in 2026, driven by the mature application of AI video models like Kexi, which offer low costs, high production capacity, and strong visual impact [6]. Group 4: Copper Market - The market has priced in the expectation that the Federal Reserve will not lower interest rates in January 2026. The TC spot price has hit a new low, indicating ongoing tightness in copper concentrate procurement. The operating rate of cable companies continues to decline, and domestic social inventory is on the rise. Despite the recent surge in copper prices, demand is expected to be under pressure. However, the supply-demand situation remains tight, leading to a continued bullish outlook for copper prices in 2026 [7].

Group 1 - The core viewpoint is that if domestic oil and gas companies increase their exploration and development efforts, the oil service industry is expected to see a rise in workload [2] - The company maintains stable long-term partnerships with clients such as Chevron and Occidental Petroleum in North America [2] - The specific impact on the company will depend on the performance outlined in the company's announcements [2]

Group 1: Schlumberger (SLB) - Evercore ISI upgraded Schlumberger's rating from "Market Perform" to "Outperform" and raised the target price from $38 to $54 [1] - The outlook for Schlumberger is clearer than it has been in over two years, with strategic focus shifting to wellhead and production areas, reducing overall risk [1] - Evercore expects international oilfield spending, particularly in the Middle East, to surpass North America by 2026, benefiting Schlumberger's business structure due to its strong position in key international markets [1] - Earnings per share (EPS) forecasts for Schlumberger were raised for 2026 and 2027 from $2.97 and $3.30 to $3.00 and $3.40, respectively [1] Group 2: Halliburton (HAL) - Evercore downgraded Halliburton's rating from "Outperform" to "Market Perform" and raised the target price from $28 to $35 [2] - Halliburton's exposure to North America remains a key constraint on its development, with approximately 40% of its revenue coming from the North American market [2] - Evercore holds a pessimistic view on North American oil and gas spending in 2026, anticipating a slowdown in market activity due to industry consolidation and peak land production rates [2] - Despite ongoing efforts in equipment optimization and cost control, Halliburton's domestic fracturing services business is expected to continue exerting pressure on the company [2]