Turn-of-the-century humorist Kin Hubbard once quipped, “The safest way to double your money is to fold it over once and put it in your pocket.” Simpler times, simpler rules.
Continue reading “M&A: Customer Friend or Foe? – Part 3”Can Oilfield Suppliers Save Themselves?
Few sectors have ever fallen farther over an extended period than oilfield suppliers have since the current industry downturn began in June 2014. Relative to the broader market, the sector’s decline may be unprecedented.
Continue reading “Can Oilfield Suppliers Save Themselves?”Travelers on a Road to Nowhere
This post was updated on June 24, 2019.
For Oilfield Suppliers, It’s Adapt or Die
This post was updated on June 26, 2019.
Oil prices have rebounded from their 2014 collapse. Yet for upstream suppliers, it’s hard to tell.
It’s going to take more than crude in the $60s to rebalance the oilfield. The problem remains structural. In short, there are too many players chasing too little demand. Continue reading “For Oilfield Suppliers, It’s Adapt or Die”
Succeeding in a Cyclical Industry
Achieving sustained performance in the oil and gas industry can, quite frankly, be a challenge. A primary reason is cyclicality. For suppliers, the task of continually scaling one’s organization to match market temperament can prove especially tricky.
Numerous factors lead to the swings in demand that define the oilfield. Mercurial commodity prices top the list. Fluctuating exchange rates, capital availability, seasonality and weather, government policy, and geopolitical events also play their part. Continue reading “Succeeding in a Cyclical Industry”
2016 Customer Satisfaction Landscape
Laying the Groundwork for Better Times Ahead
The tendency of many suppliers to the oil and gas industry is to live for the up cycle. When challenging times hit, enthusiasm inevitably wanes. Companies go through the motions, but their hearts aren’t in it. Some even shut their doors until times improve.
But it does not have to be this way. Forward-looking suppliers always have the opportunity to the lay the groundwork for better times ahead. For some, this new foundation will be evolutionary. For others, it can prove revolutionary.
Continue reading “Laying the Groundwork for Better Times Ahead”Shaping a Customer Satisfaction Culture
Producing lasting customer satisfaction requires vigilant alignment of an organization’s many moving parts. Moreover, the only way to influence the kind of company-wide change that breeds these levels is to entrench the entire corporate culture in a relentless drive to satisfy customers.
Mindful leaders know setting customer satisfaction as a primary goal can be met with resistance. The payoff, while potentially transformative, is rarely immediate. Success requires the will to influence, coupled with an eye for the horizon. Once the commitment and processes are in place, however, prioritizing Continue reading “Shaping a Customer Satisfaction Culture”
Schlumberger’s Quiet Moonshot
Schlumberger’s bid for Cameron Int’l is big news in a flinching industry. The vision behind the deal is ambitious — even a bit brash. It’s more than just the consolidation of two large oilfield suppliers. The technical aspects of the plan could unleash industry ripples for decades to come.
Cameron’s long-time focus has been on the “heavy iron” used in the oil patch. Schlumberger hopes to expand on that role by creating fully integrated drilling and production systems around its various products. The idea amounts to an operating system that efficiently manages processes from downhole to delivery.
It’s an alluring concept, one that cuts across much of the upstream Continue reading “Schlumberger’s Quiet Moonshot”
Schlumberger Angles for Growth with Bid for Cameron
Changes in the outlook for the upstream oil and gas industry have led Schlumberger to launch a convincing bid for Houston-based oilfield equipment supplier and current joint-venture partner Cameron Int’l. The richly valued deal implies a price for Cameron’s stock of just over $66 per share, a 56% premium over its pre-announcement close. With the assumption of $1.1 billion of Cameron debt, the deal’s total price approaches $15 billion.
This is not the first time in recent memory Schlumberger has sought to acquire an existing partner. In 2010, it purchased Smith Int’l to gain needed Continue reading “Schlumberger Angles for Growth with Bid for Cameron”