As the shale patch enjoys the current upswing in commodity prices and prepares to supply the marginal barrel of demand growth, operators have significantly accelerated the adoption of artificial lift options. Through a mix of primary research conducted with oil & gas operators in the Permian, Bakken, Eagle Ford, and the Rockies, coupled with extensive […]
Jack of few, Master of one: Strategic consolidation of oilfield service companies
Oilfield services demand is strongly correlated to upstream exploration and production spending and activity patterns. However, we see significant play-wise variations in oilfield services spending. With advancing technology to increase oil and gas recovery, shale plays are becoming more specialized and unrelated to other plays in terms of lithology, fluid properties (e.g. water cut, gas-oil […]
How can OEM, EPC, and OFS companies compete in the downturn?
Over the past decade, the North American oil and gas industry has seen many dramatic changes. The most dramatic change has been an increase in production from unconventionals leading to a large supply of oil, natural gas, and NGLs. However, unconventional production is more dependent on the larger supply chain leading to significant investment across […]
Growing Consolidation and New Markets Drive Change in the Artificial Lift Market
Artificial lift is a method of increasing pressure within an oil and gas reservoir to maximize hydrocarbon recovery. Historically, artificial lift was primarily used on wells with insufficient pressure but now in an effort to improve flow rates its use on naturally flowing wells has increased. In total there are ~1 million wells utilizing artificial […]
What Does the Failure of the HAL BHI Merger Mean for M&A in Oilfield Services?
Last week, it was announced that Halliburton would not be following through with its acquisition of Baker Hughes. Meanwhile, in early April, Schlumberger’s acquisition of Cameron was completed. Understanding why the Halliburton Baker Hughes deal fell through while the Schlumberger Cameron deal moved forward offers insight into the outlook for M&A in oilfield services. Fundamentally different […]
The “make vs. buy” lesson for Delta and Chesapeake
Ford Motor Company apparently owned the land that fed the sheep whose wool was used to make its car seats. While this is, in fact, an urban legend it brings up a very valuable point. What is more beneficial − make or buy? In other words, should a company invest in owning and operating all […]
