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North American Land Driller Ratings Fall

North American Land Driller Ratings Fall (FI). v. 1.00

Demand for North American (NAM) land-drilling services has leveled off for the time being. A warm first half of winter and expectations for shoulder-month reductions in gas demand have given many producers pause regarding their drilling programs.

We believe a modest slowdown in activity could prove a blessing in disguise for many drillers, who could use the opportunity to regroup after a frenzied couple of years that, despite record earnings, have cost them in terms of customer satisfaction. Continue reading “North American Land Driller Ratings Fall”

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Executive’s Departure Could Hamper Weatherford’s Progress

Departure of Key Executive Could Hamper Weatherford's Progress (FI) v. 1.00

EnergyPoint Research took particular interest in the recent announcement that John King, President of Weatherford International’s Evaluation, Drilling & Intervention Division, will be leaving the company. King came to Weatherford in 2005 via the company’s purchase of Precision Drilling‘s international drilling and energy services operations. 

While at Precision, King was instrumental in developing an organization and culture that, as far as we can tell, was one of the more customer- and value-centric in the industry. In EnergyPoint’s 2004 oilfield services survey, Precision ranked 1st out of 24 providers in total satisfaction. Without King, Precision’s satisfaction ranking fell to 17th in 2006. Continue reading “Executive’s Departure Could Hamper Weatherford’s Progress”

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GE’s Purchase of Vetco Gray: Examining the Impact

GE's Purchase of Vetco Gray (FI) v. 1.00

It would not be surprising if last month’s announcement that General Electric will purchase oilfield equipment maker Vetco Gray sent a collective shiver down the spines of Vetco competitors.

For years, competitors watched Vetco more or less tread water under the ownership of ABB. Private-equity bought the company in 2004 and seemed to hold to the traditional private-equity model of limiting investments to initiatives offering the highest returns and quickest payback. We suspect to see changes at the company now that it is in the hands of a longer-term, more growth-oriented owner. Continue reading “GE’s Purchase of Vetco Gray: Examining the Impact”

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Courting the National Oil Companies

Courting the National Oil Companies Featured Image

By some estimates, national oil companies (NOCs) control an estimated 90% of the world’s proven petroleum reserves. One need look no further than Statoil’s recent announcement to purchase Norsk Hydro’s offshore oil and gas assets, Royal Dutch Shell’s sale of interest in the Sakhalin II project to Gazprom, or the creeping nationalization in Latin America to understand that state-controlled oil and gas companies are poised to grow in size and influence in coming years.

In the past, NOCs sought established international oil companies (IOCs) like ExxonMobil, Chevron, BP, ConocoPhillips and Shell to develop their reserves. Under these arrangements, the IOCs typically handled much of the selection and management of oilfield vendors on behalf of their NOC partners. However, NOCs now appear to be asserting themselves in the process to a greater degree . Continue reading “Courting the National Oil Companies”