Category: Industry Topics

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Top Oil Companies Increasingly Defined by Shale Innovation

Shale Rock

U.S. shale plays may be creating a novel way to measure the new breed of top oil companies. The standard yardstick of worldwide barrels produced per day still evokes names of familiar global players such as Exxon Mobil, Shell and BP, as well as state-owned entities like Saudi Aramco and Petrobras. When gauged by innovation on the frontier of enhanced oil recovery, however, a host of more narrowly focused companies enter the conversation.

The sheer volume of extractable petroleum, and the related economic potential, justifiably dominate shale discussions. The Bakken Shale helped reinvigorate domestic oil drilling, and the Eagle Ford Shale promises to make Texas the eighth largest producer of crude in the world by the end of this year. EOG Resources, a gas company turned top shale-oil producer, has plans to drill 425 wells this year in Eagle Ford. These shales are incubators where today’s new type of top oil company is changing the way we extract hydrocarbons. Continue reading “Top Oil Companies Increasingly Defined by Shale Innovation”

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Global Shale: Potential Bonanza for Suppliers

Global Map

Shale-oil and -gas production in the U.S. has been revered by some as the fuel, engine and vehicle driving the nation toward energy independence and economic solvency. Astronomical estimates of reserves, millions of high-paying new oilfield jobs, enhanced competitiveness for American industry, greater tax inflows for state and federal governments, and incremental export revenues certainly justify the volume of discussion.

Shale has at once become both disruptive and transformative. It’s also here to stay. IEA estimates the share of U.S. shale oil and gas production to double by 2035. Continue reading “Global Shale: Potential Bonanza for Suppliers”

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Ways to Encourage Better Supplier Performance

Encourage Supplier Performance

Over the years, EnergyPoint has collected literally tens of thousands of customer evaluations of oilfield suppliers.  We’ve stuck to our mission because we believe it adds a needed degree of transparency to the industry’s supplier-performance picture.

It has also afforded us some unique insights, including understanding ways customers can proactively influence the performance of their suppliers.  Here’s some of the ways that stand out: Continue reading “Ways to Encourage Better Supplier Performance”

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The “Bad Apple” Scenario (Revisited)

Bad Oilfield Apple

The Wall Street Journal recently published an article pointing out that fewer environmental incidents are being recorded now that larger, more experienced operators have begun to supplant smaller ones in Pennsylvania’s Marcellus Shale. While this is certainly welcome news, the industry has reason to remain vigilant in greenfield regions that lack installed infrastructure and/or a pool of trained and experienced personnel.

With this in mind, we thought we’d share an updated version of the “Bad Apple” post we published back in the Fall of 2012. We hope it will serve as a reminder of the potential pitfalls that exist as the industry moves into new regions to develop an ever-expanding set of resources. Continue reading “The “Bad Apple” Scenario (Revisited)”

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Off Target In The Aftermarket

Off Target

Listening to earnings calls of today’s publicly traded oilfield suppliers, it’s easy to come away with the impression that within certain original equipment manufacturers’ post-sale support function has little to do with ensuring customers get the most and best use of the products they purchase. Rather, the function seems more about collecting outsize incremental revenues designed to juice margins.

A number of suppliers openly boast to their investors (but we suspect not to customers) that the increasingly high-tech features embedded in many of today’s oilfield products are good for business expressly because of the future maintenance income attached to the products. Continue reading “Off Target In The Aftermarket”

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Theodore Roosevelt: Industry Standard-bearer

Teddy Roosevelt

For decades, it has been popular for politicians and the media to portray the energy sector as a begrimed example of what needs to change in America. All the while, the industry continues to provide low-cost energy and well-paying jobs at times when the country needs both.

Faced with a public and political class that has little appreciation—and in some cases outright scorn—for its contributions, it would be understandable if industry participants felt like throwing in the towel. However, those who give their best everyday would do well to remember the words of Theodore Roosevelt. Continue reading “Theodore Roosevelt: Industry Standard-bearer”

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Opportunities Stack Up, As Fracs Back Up

The Big Three Pressure Pumpers See Falling Ratings

One would think E&P companies would be cheering. Nominal hydraulic fracturing capacity looks on pace to rise 25 percent or more this year. And advances in technology promise to bolster both the potency and cleanliness of the increasingly relied-upon service.

Yet, against the backdrop of capacity growth and technological advances, suppliers of frac services are earning relatively low marks in EnergyPoint customer satisfaction surveys. In fact, as demand for frac services increases, the less content customers seem—especially compared to other completion-related services. This is certainly the case for perennial segment leader Halliburton (although the company’s ratings still continue to lead those of its major peers). It appears the case for Schlumberger and Baker Hughes as well. Continue reading “Opportunities Stack Up, As Fracs Back Up”

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The Supplier Side of Shale

Shale Renaissance: A Look at the Supplier-side

Horizontal drilling, multi-stage fracturing and other innovative technologies have forever changed both economics and mechanics underlying oil and gas development in U.S. onshore markets. Moreover, it’s looking increasingly like these methods will spread to other parts of the globe.

Unlike for certain other segments, suppliers deserve much of the credit for today’s shale renaissance. And that’s not just our opinion. Since 2008, users of oilfield products and services participating in EnergyPoint’s customer satisfaction surveys have rated suppliers noticeably higher for horizontal wells and other shale-related applications. This is the case for overall satisfaction and across multiple product and service attributes.

Continue reading “The Supplier Side of Shale”

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Oilfield Suppliers as Changes Agents?

Oilfield Suppliers As Change Agents

If there’s one truth that data from EnergyPoint Research’s independent studies reveals, it is that upstream oil and gas customers respond to steady quality and reliable support from suppliers.

Despite these customer entreats, our latest survey suggests many high-profile equipment and material suppliers continue to repeat performance-killing mistakes: design flaws, lack of quality controls, poor commissioning practices, and a disproportionate focus on acquisitions. Continue reading “Oilfield Suppliers as Changes Agents?”

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Is Bundling All Its Cracked Up To Be?

Bundling May Be Hurting Overall Customer Satisfaction

Bundling of products and services is always a hot topic in the oilfield. Suppliers contend it’s what customers need, and customers seem forever intrigued. Wall Street sees a catalyst for suppliers to grow revenues and expand margins and a way for operators to reduce costs.

One can understand the enthusiasm. After all, who wants to believe leveraging relationships and infrastructure by selling more to loyal clients isn’t a good thing? And the one-stop shop is a more effective supply chain-solution, right?

If it were only so simple.

Analysis of EnergyPoint customer satisfaction data paints a murky picture when it comes to bundling. Continue reading “Is Bundling All Its Cracked Up To Be?”