Olivier Le Peuch: Yeah. First, because you pick on it, I think, I’d like to first reflect on North America. North America has been a fantastic success in the last 18 months, 24 months. I think the rate of growth that the team has achieved both in offshore and land market has outpaced the re-growth visibly, the success in our technology offering and fit and tech access model that has been very successful there. I think as we expanded margin, as you have seen, our margin are the very, I would say, different, if not very accretive level today in North America. So this is a very good base to be on. And as the market 2023 unfolds, first there is a little bit of a shift to drilling to rebuild the DUC inventory that will favor us in a month and a couple of quarters to come before the usual plateauing or a moderation of growth in the second half.
But we see an increased level of rig activity in North America, and clearly, on the momentum of — and it’s typically it happens in the early part of the year before it plateaus in the second half and that’s nothing new. That’s a pattern that we expect and will have an impact on the first quarter. And then we see a continuation of the offshore strength and in — be it in Gulf of Mexico, in east Canada or further North in Alaska and this activity set to continue to grow in 2023. So NAM will be indeed an engine that will support growth in the first half. And by contrast, as I said, the usual pattern of seasonality internationally in the Northern Hemisphere will be offsetting this and we will also this year have the effect of the Russia year-on-year decline that we expect to impact negatively.
So you have a mix there that I think we have described and but NAM will be an engine of growth in the second — the first half.
Chase Mulvehill: Okay. All right. Perfect. I will turn it back over. Thanks, Olivier.
Olivier Le Peuch: Thank you.
Operator: Next we go to Arun Jayaram with JPMorgan Chase. Please go ahead.
Arun Jayaram: Yeah. Good morning, Olivier.
Olivier Le Peuch: Good morning, Arun.
Arun Jayaram: I wanted to get your thoughts, Olivier, on the level of service intensity that you are seeing, particularly in the Middle East, perhaps, relative to the 2009, 2014 cycle, as well as thoughts on the spare capacity — OFS capacity in markets like the Middle East and offshore?
Olivier Le Peuch: Yeah. I think let me reflect first on the indeed, the service intensity. I think the — again, as I said, I think, there is a significant expansion happening at the same time concurrently and there is a significant focus on performance. So this has led to an increase of service intensity in the contracts where we operate. We are fully passing to this and we are leading on many of them based on our performance. But at the same time, we have much increased and much improved asset efficiency, and hence, we are able to deliver that service intensity, that performance focused delivery to our customer without increasing our CapEx intensity and we remain with our target of 5% to 7% total CapEx, as you have seen in our guidance today.
So that’s — I think that’s one aspect that I think is critical and we use that discipline in our CapEx, that capital to actually to indeed use this to help us extract and guide further up the pricing in the market. So the pricing is driven by, first and foremost, performance. As we see it, our performance gives us a premium, technology, a unique technology that either impacting performance or impacting decarbonization as transition technology or that is fit for the basin. And then, obviously, the stretch in the capacity market that is now being obvious and is being tested in the Middle East and in offshore is driving another undercurrent of pricing positive trends.
