Schlumberger 2010 Annual Report - page 27

Any dilution of, or decrease or delay of any accretion to, our earnings per share could cause the price of our common
stock to decline.
Our offshore oil and gas operations could be adversely impacted by the Deepwater Horizon drilling rig acci-
dent and resulting oil spill; changes in and compliance with restrictions or regulations on offshore drilling in
the US Gulf of Mexico and in other areas around the world may adversely affect our business and operating
On April 20, 2010, a fire and explosion occurred onboard the semisubmersible drilling rig
Deepwater Horizon
, owned
by Transocean Ltd. and under contract to a subsidiary of BP plc. As a result of the incident and related oil spill, the
Secretary of the US Department of the Interior directed the Bureau of Ocean Energy Management, Regulation and
Enforcement (“BOEMRE”) to issue a suspension, until November 30, 2010, of drilling activities for specified drilling
configurations and technologies. Although this moratorium was lifted on October 12, 2010, effective immediately, we
cannot predict with certainty when drilling operations will fully resume in the US Gulf of Mexico. The BOEMRE has also
issued new guidelines and regulations regarding safety, environmental matters, drilling equipment and decommis-
sioning applicable to drilling in the US Gulf of Mexico, and may take other additional steps that could increase the costs
of exploration and production, reduce the area of operations and result in permitting delays.
At this time, we cannot predict with any certainty what further impact, if any, the
Deepwater Horizon
incident may
have on the regulation of offshore oil and gas exploration and development activity, or on the cost or availability of
insurance coverage to cover the risks of such operations. Ongoing effects of and delays from the lifted suspension of
drilling activity in the US Gulf of Mexico, or the enactment of new or stricter regulations in the United States and other
countries where we operate, could materially adversely affect our financial condition, results of operations or cash flows.
Environmental compliance costs and liabilities could reduce our earnings and cash available for operations.
We are subject to increasingly stringent laws and regulations relating to importation and use of hazardous materials,
radioactive materials and explosives, environmental protection, including laws and regulations governing air emissions,
water discharges and waste management. We incur, and expect to continue to incur, capital and operating costs to
comply with environmental laws and regulations. The technical requirements of these laws and regulations are
becoming increasingly complex, stringent and expensive to implement. These laws may provide for “strict liability” for
damages to natural resources or threats to public health and safety. Strict liability can render a party liable for damages
without regard to negligence or fault on the part of the party. Some environmental laws provide for joint and several
strict liability for remediation of spills and releases of hazardous substances.
We use and generate hazardous substances and wastes in our operations. In addition, many of our current and former
properties are, or have been, used for industrial purposes. Accordingly, we could become subject to potentially material
liabilities relating to the investigation and cleanup of contaminated properties, and to claims alleging personal injury or
property damage as the result of exposures to, or releases of, hazardous substances. In addition, stricter enforcement of
existing laws and regulations, new laws and regulations, the discovery of previously unknown contamination or the
imposition of new or increased requirements could require us to incur costs or become the basis of new or increased
liabilities that could reduce our earnings and our cash available for operations. We believe we are currently in
substantial compliance with environmental laws and regulations.
We could be subject to substantial liability claims, which would adversely affect our financial condition,
results of operations and cash flows.
Certain equipment used in the delivery of oilfield services, such as directional drilling equipment, perforating
systems, subsea completion equipment, radioactive materials and explosives and well completion systems, are used in
hostile environments, such as exploration, development and production applications. An accident or a failure of a
product could cause personal injury, loss of life, damage to property, equipment or the environment, and suspension of
operations. Our insurance may not protect us against liability for some kinds of events, including events involving
pollution, or against losses resulting from business interruption. Moreover, in the future we may not be able to maintain
insurance at levels of risk coverage or policy limits that we deem adequate. Substantial claims made under our policies
could cause our premiums to increase. Any future damages caused by our products that are not covered by insurance, or
Part I, Item 1A
1...,17,18,19,20,21,22,23,24,25,26 28,29,30,31,32,33,34,35,36,37,...108
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