Tag: Schlumberger

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Sizing Up GE + Lufkin Industries – Part 1

M&A

Despite its relatively small size and narrow focus, Lufkin Industries‘ products are iconic within the petroleum industry. Glance at virtually any photo of a West Texas oilfield, and you’ll likely see at least one gracefully oscillating Lufkin pump jack. The oilfield’s a pretty practical place, but there’s always been something sublime about that particular image.

With its announcement earlier this week that it will purchase Lufkin Industries for $3.3 billion — a rich 38% premium over the previous trading-day’s closing price — GE Oil & Gas obviously sees something inspiring in the shot as well. The industrial giant clearly believes there are strong secular growth prospects in artificial lift applications. Continue reading “Sizing Up GE + Lufkin Industries – Part 1”

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New Tests Challenge Schlumberger

New Tests for Schlumberger Featured Image

As a capable giant in the oilfield, Schlumberger’s tentacles of services, manpower and ingenuity stretch into almost every major facet of exploration and production. Yet, from the purview of overall customer satisfaction, the company can appear more like a straw in a haystack.

To be sure, Schlumberger’s customer satisfaction ratings remain quite strong in the area of formation and well evaluation, a demonstration of strength at its core.  In fact, its acoustics-while-drilling and related wireline suite of products and services are considered by some to be must-haves these days.  Its scores are also strong in drill bits, drilling fluids, well testing, rotary steerable systems, deep water applications and international markets. Continue reading “New Tests Challenge Schlumberger”

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Baker Hughes Remains A Work In Progress

Under Construction

Transitions are hard, especially big ones. They’re even more challenging when they take a company from a well-plotted, successful path to an more uncertain one. Such is the story with Baker Hughes.

It’s been over three years since Baker Hughes embarked on its high-profile effort to transform from a relatively decentralized oilfield products and services provider to one determined to compete more widely and deftly via an expanded and deepened global footprint, along with a more integrated suite of products and services. To date, the promise of the strategy has yet to fully materialize. Continue reading “Baker Hughes Remains A Work In Progress”

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Cameron – Schlumberger JV Shifts Subsea Currents

Subsea Systems

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, Flow Assurance and Power and Controls businesses. Continue reading “Cameron – Schlumberger JV Shifts Subsea Currents”

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Suppliers’ Lockstep Strategies Not the Answer

Marching

Within the upstream oil and gas industry, there’s a limited number of oilfield suppliers possessing the size and scope to be considered fully integrated and/or global in nature. On the services side, the roll (listed alphabetically) includes Baker Hughes, Halliburton, Schlumberger and Weatherford International. For capital equipment, it’s Aker Solutions, Cameron International, FMC Technologies, GE Oil & Gas and National Oilwell Varco.

On a combined basis, these nine super suppliers (did we just coin a new term?) currently represent about a quarter of all supplier-segment sales to the global upstream. Yet, none of these companies currently enjoy above-average ratings in EnergyPoint Research’s independent customer satisfaction surveys. And the latest trends don’t suggest the situation will significantly change anytime soon.

Continue reading “Suppliers’ Lockstep Strategies Not the Answer”

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Availability & Delivery Help Drive Satisfaction in Artificial Lift

Artificial Lift - Feature Image

Advances in the E&P space coming fast these days. And industry suppliers that fail to stand equipped and fleet-of-foot run the risk of falling behind.

Results from EnergyPoint Research’s latest customer satisfaction survey indicate that product availability and efficient delivery are ways suppliers of artificial lift equipment might distinguish themselves going forward. Quality control, engineering and other factors will certainly continue to matter to customers, but so will actually having the desired equipment at the time it’s needed. Continue reading “Availability & Delivery Help Drive Satisfaction in Artificial Lift”

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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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Rethinking Tetra Technologies

Rethinking Tetra Technologies

TETRA Technologies is a good example of how top-level leadership can impact a company. The provider of completion fluids and other oilfield products and services experienced a dramatic 90% stock price deterioration beginning August 2008, as the oilfield supply declined less than 60%. The outsize fall culminated with the resignation of the company’s long-term CEO in March 2009.

Since that time, data from EnergyPoint’s independent customer satisfaction surveys show TETRA has begun to rise from the ashes, earning more positive reviews from customers while simultaneously gaining back more than half its market value. Continue reading “Rethinking Tetra Technologies”

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Watchful Eyes, Everywhere

The Oil and Gas Industry Searches for Ways to Improve

In the wake of the BP Macondo Gulf of Mexico oil spill, the oil and gas industry is, and will remain for years to come, under the microscope. And it’s not only politicians and environmentalists peering through the crude-stained eyepiece. The gawking multitudes this time include the media, investors, John Q. Public, and even industry participants.

Going forward, virtually every move the industry makes (or fails to make) will be subject to efforts to ascertain whether the industry can be trusted.  Will it take the steps needed to improve its performance, stewardship and reputation? Continue reading “Watchful Eyes, Everywhere”