Energy Industry Intel & Commentary
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 …
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Conceptualizing, fabricating and installing the labyrinth of integrated systems and equipment required for today’s massive subsea projects are some of the most complex tasks in the oil and gas industry. Without question, the daunting challenges at these depths contribute to the historically low customer satisfaction ratings for subsea products we have observed in our surveys …
Continue reading “Cameron Int’l Making Its Way To New Depths”
Cameron and Schlumberger announced this morning the formation of OneSubsea, a 60/40 joint venture partnership that will focus on manufacturing and developing subsea products and services worldwide. Cameron will contribute its existing subsea division and receive $600 million from Schlumberger. It will also act as operator. For its part, Schlumberger will contribute its Framo, Surveillance, …
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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.
It is said what CEOs most enjoy is a challenge with outsize reward. If so, Mark McCollum should be ecstatic. As the incoming CEO of Weatherford International, he is tasked with resurrecting one of the more perennially promising, yet frustratingly underachieving, companies in the oil patch. McCollum’s predecessor, long-time CEO Bernard Duroc-Danner, built an organization with …
As the oil and gas sector stirs with a hopeful sense of purpose, several of its largest and most influential suppliers are pursuing distinctly different strategies. It’s not just about which products and services will propel the industry forward. To some extent, the balance of power between providers and customers is at stake. On one end of the …
Continue reading “Integrated Oilfield Suppliers Plot Divergent Paths”
GE Oil & Gas and Baker Hughes shocked the oil and gas world with the announcement they will come together to create the industry’s number two supplier. From a financial standpoint, the transaction is effectively an acquisition of Baker Hughes by GE. In practical terms, it’s more like a merger. Both companies will contribute their …
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In the 1980s and 1990s, the oilfield equipment sector, for all intents and purposes, neglected the customer. Since then, a select group of companies have successfully kept the focus of their efforts on satisfying customers with dependable products. They have coupled this with responsive service. The results are impressive. In fact, they’ve played critical roles …
Continue reading “Oilfield Equipment: Let Gaps Guide Investment”
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 …
FMC Technologies, a leading oil equipment company, consistently outranks its peer-group average in EnergyPoint Research’s customer satisfaction surveys. The company has grown into a dominant player over the years partly on the strength of a vigorous research and development program that began bearing fruit in time for today’s exuberant revival of subsea drilling and development. …
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