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Why Concerns Over Guar Are Overblown

Guar Beans

The shortage of guar gum and its potential impact on the ability of oilfield suppliers to meet hydraulic fracturing demand has been a hot topic as of late. While we acknowledge the issue is intriguing (i.e., an unforeseen shortage of a strange plant product no one had really even heard of a year ago, hoarding of inventories by the globe’s number one producer, etc.), it’s our opinion that concerns are overblown for the following reasons: Continue reading “Why Concerns Over Guar Are Overblown”

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Positive Change Underway at Nabors Industries

Nabors Industries Featured Image

Are positive changes are underway at Nabors Industries? The company, which currently rates Low overall but is trending Upward in EnergyPoint’s oilfield customer satisfaction ratings, seems to be undergoing a cultural and strategic transformation under the leadership of Tony Petrello, who recently replaced Gene Isenberg as CEO.

As COO, Petrello was seen by many as complicit in the strategies and ways of Isenberg. So, were not sure if these transformational steps Petrello’s own initiative, or if they stem from specific directives from an increasingly proactive board. Continue reading “Positive Change Underway at Nabors Industries”

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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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Wellheads & Trees: Consistency a Virtue, Reliability a Requirement

Wellhead and Tree Image

The father of modern scientific method, Sir Francis Bacon, believed consistency to be “the foundation of virtue.” Dramatist and poet Oscar Wilde, on the other hand, saw consistency as the “last refuge of the unimaginative.”

While we do not wish in any way to diminish Wilde’s esteemed position in literary circles, we do suppose it’s a good thing he made his living with a pen and not with the drill bit. Why? Because this much we know: consistency matters in the oil and gas industry.  In fact, it matters a lot. Continue reading “Wellheads & Trees: Consistency a Virtue, Reliability a Requirement”

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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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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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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?”

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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”