Premium Essay

Oil and Gas Services Industry Analysis

In: Business and Management

Submitted By
Words 13196
Pages 53
Kristin Robinson
Dylan Graham
Ruben Doris
Sarah Wallace
Oil & Gas Equipment and Services Industry

Overview: The oilfield services and equipment sector was valued around $152 billion in 2012. The OFS industry “is made up of mature set of companies” and whose success is dependent on the “drilling expenditures of the oil and gas companies”. The OFS industry provides a wide range of services and equipment for oil and gas companies around the world. They aid in the extraction and production of natural resources. OFS companies are involved in all stages of production, from upstream through downstream. The size of these service companies was relatively small until the 1980’s, when the major oil and gas companies outsourced a variety of processes to service companies. OFS companies continued to grow in size and importance with the innovation of new technologies and abilities such as directional drilling and improved 3D seismic imaging. Today, OFS companies play a key part in what is commonly referred to as the “shale revolution” in North America. The industry’s success is dependent on several factors including oil/gas prices, economic stability, and innovation of new technologies. This sector is comprised of four giants that include Schlumberger, Weatherford, Halliburton, and Baker Hughes. These companies are involved in a broad range of services that require intensive capital and R&D. Independent firms typically perform smaller, specialized services with expertise in the process involved. The services sector is expected to grow substantially over the next five to ten years, as the overall industry will rely more heavily on OFS company’s capabilities to extract more remote reservoirs. Products & Services: The Big 4 service companies are engaged in a wide range of products and services. Despite each company’s specialty in certain...

Similar Documents

Premium Essay

Swot Analysis Phl/320

...SWOT Analysis PHL/320 SWOT Analysis SWOT analysis is an acronym that stands for strengths, weaknesses, opportunities, and threats. It’s an organized list of a business’s strengths, weaknesses opportunities, and threats. For my SWOT analysis I have chosen to complete it over the oil and gas companies. I work for an oil and gas company so for me this will help me better understand SWOT analysis in the business aspect of things. After review the articles through the Hoovers first search I have created the following SWOT analysis. SWOT Analysis | SWOT Analysis Chart | Strengthes | * Targeting the highest quality resource currently available the in CoP operated Oil Sands portfolio * Resource well delineated * Low geological uncertainty * Utilized learnings from Phase 1 and pilot operations * Drilling, subsurface and project team staff experience from Phase 1 * Staged construction and start-up strategy optimized to match capital spend with early production * Reservoir performance ranges well understood and incorporated into facility design | Weaknesses | •Fixed steam capacity – production limited by SoR•Potential large number of source water wells over a large area to achieve plateau production•Challenged economics•Sensitivity of project economics to capital cost increases | Opportunities | • Strong land position in the Oil Sands allows for optimization of development plans• Expandable design positioned to create value for......

Words: 1105 - Pages: 5

Premium Essay

Noble Energy

...Strategic Research Project Analysis: NOBLE ENERGY, INC Respectfully Submitted to: Dr Shengsheng Charlie Huang Strategic Management MGMT 4309- Fall 2013 Table of Contents 1. Executive Summary 2. Introduction 3.1 Company Background 3.2 Purpose of the study 3. External Analysis 4.3 General Environmental Analysis 4.4.1 Demographic Segment 4.4.2 Economic Segment 4.4.3 Political/Legal Segment 4.4.4 Socio-Cultural Segment 4.4.5 Technological Segment 4.4.6 Global Segment 4.4.7 Summary of the General Environmental Analysis 4.4.8 Industry Driving Forces 4.4 Industry Analysis 4.5.9 Description of the Industry 4.5.10 Industry Dominant Economic Features 4.5.11.1 Market Size 4.5.11.2 Market Growth Rate 4.5.11.3 Industry Trends 4.5.11 Five Forces Analysis 4.5.12.4 Threats of New Entrants 4.5.12.5 Power of Suppliers 4.5.12.6 Power of Buyers 4.5.12.7 Power of Substitutes 4.5.12.8 Intensity of Rivalry 4.5.12.9 Summary of Industry Analysis 4.5 Competition Analysis 4.6.12 Industry Competitors 4.6.13 Rivals Anticipated Strategic Moves 4.6.14 Summary of Competitive Analysis 4.6.15 Key Success Factors 4. Internal Analysis 4.1 Organizational Analysis 4.1.1 Corporate......

Words: 15475 - Pages: 62

Premium Essay

Volkswagon

... Elena Acosta Table of Contents 1.0. Executive Summary………………………………………………………………………...4 2.0 Company History…………………………………………………………………………...5 2.1 Background…………………………………………………………………………………6 2.2 Purpose of this Study……………………………………………………………………….8 3.0 External Analysis…………………………………………………………………………...9 3.1 General Environmental Analysis…………………………………………………………..10 3.1.1. Demographic Segment…………………………………………………………………..10 3.1.2. Economic Segment………………………………………………………………………12 3.1.3. Political/Legal Segment………………………………………………………………….12 3.1.4. Socio-Cultural Segment………………………………………………………………….13 3.1.5. Technological Segment……………………………………………………………………14 3.1.6. Physical Segment……………………………………………………………………………14 3.1.7. Summary of General Environment Analysis……………………………………………...15 3.1.8. Driving Forces…………………………………………………………………………….18 3.2. Industry Analysis………………………………………………………………………….18 3.2.1. Description of the Industry………………………………………………………………..20 3.2.2. Industry Dominant Economic Features…………………………………………………...20 3.2.3. Market Size………………………………………………………………………………..22 3.2.4. Market Growth Rate………………………………………………………………………22 3.2.5. Industry Trends……………………………………………………………………………23 3.2.5. Five...

Words: 20369 - Pages: 82

Premium Essay

Strategic Management on Sapura Kencana Petroleum Berhad

...customer benefits of a product or services and it is difficult for a competitor to imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field (Anonymous). According to Fred (2013), core competencies define as a value chain activity that firm performs especially well. When a core competence evolves into a major competitive advantage, it will turn into distinctive competence. Core competencies may include any combination of skills, technologies, processes, knowledge or expertise and are often achieved as a result of long-term development processes and/or experiences (Mayhew, 2010). Competitive advantage on the other hand is defined as a measure relative to rivals in a given industry. Competitive advantage happen when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company SapuraKencana Petroleum Berhad. This study is organised as follows; section 2.0 will be informing the background of SapuraKencana Petroleum Berhad. Section 3.0 is regarding SapuraKencana Petroleum general environment analysis which divided......

Words: 3420 - Pages: 14

Premium Essay

Royal Dutch Shell

...Royal Dutch Shell, the group has gradually become the world's leading international oil company. However, since the global economy makes the rapid progress, Royal Dutch Shell has been confronted with the increasingly fiercer competition in the market. Surrounded by so much fierce market competition, Royal Dutch Shell is also faced with lots of challenges. And the challenges will have the important influence on the survival and the development of Royal Dutch Shell. Consequently, Royal Dutch Shell will take the corresponding measures to meet the challenges in order to stand in an impregnable position in the competitive market. The article will make a thorough inquiry in detail. The first section is to conduct the challenges in Royal Dutch Shell business environment that are of current strategic importance according to the PESTLE analysis and The Porter’s Five Forces Analysis, and analyze the PESTLE analysis and The Porter’s Five Forces Analysis on the basis of the SWOT matrix. The second section is to make an analysis on the strategies for the challenges that have been identified with the Boston matrix. The third section is to make the recommendations in allusion to the strategic direction that Royal Dutch Shell should take. In the final, a short conclusion will be made. 2 The challenges in Royal Dutch Shell business environment that are of current strategic importance 2.1 The PESTLE analysis for Royal Dutch Shell |Political ......

Words: 3416 - Pages: 14

Premium Essay

Agriculture

...The Industry Handbook: The Oil Services Industry By Investopedia Staff   A A A There is no doubt that the oil/energy industry is extremely large. According to the Department of Energy (DOE), fossil fuels (including coal, oil and natural gas) makes up more than 85% of the energy consumed in the U.S. as of 2008. Oil supplies 40% of U.S. energy needs. (Visit the U.S. Department of Energy's Energy Sources information page for more insight.) Before petroleum can be used, it is sent to a refinery where it is physically, thermally and chemically separated into fractions and then converted into finished products. About 90% of these products are fuels such as gasoline, aviation fuels, distillate and residual oil, liquefied petroleum gas (LPG), coke (not the refreshment) and kerosene. Refineries also produce non-fuel products, including petrochemicals, asphalt, road oil, lubricants, solvents and wax. Petrochemicals (ethylene, propylene, benzene and others) are shipped to chemical plants, where they are used to manufacture chemicals and plastics. (For more insight, read Oil And Gas Industry Primer.) There are two major sectors within the oil industry, upstream and downstream. For the purposes of this tutorial we will focus on upstream, which is the process of extracting the oil and refining it. Downstream is the commercial side of the business, such as gas stations or the delivery of oil for heat. Oil Drilling and Services Oil drilling and services is broken into two major areas:......

Words: 2461 - Pages: 10

Premium Essay

International Business Environment

...group of energy and petrochemical companies is a multinational company with worldwide recognition. Shell is best known for its service stations and for exploring and producing oil and gas on land and at sea. In truth Shell deliver a vast range of energy solutions and petrochemicals to customers, produce and sell petrochemical building blocks to industrial customers on a global scale, invest in making renewable and lower-carbon energy sources, competitive for large scale use. LITERATURE REVIEW Corporate Strategy of shell By being more upstream Shell aims to focus its investments on long term, high return projects to develop oil and gas resources, and grow the companies leading liquefied natural gas business. Downstream profits involves; generating more cash by reshaping integrated oil products and petrochemicals portfolio to enhance operations and focus on growth markets, particularly in Asia. Shell believes that this strategy will improve their business performance and increase their contribution to sustainable development. “Stronger emphasis on our upstream activities and fast growing markets will help us deliver the energy the world needs for economic growth and poverty reduction”. Shell aims to increase focus on producing cleaner burning natural gas, in so doing reducing dependency on coal. Shell is aware that the growing demand for oil and gas presents sustainable development challenges. Producing and using this extra energy is only sustainable, and socially......

Words: 2633 - Pages: 11

Premium Essay

Financial Economic Research and Industry Analysis

...INFOANALYTICA FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS SUMMER INTERNSHIP REPORT ANANDARUP GHOSHAL 2008 ICFAI BUSINESS SCHOOL, AHMEDABAD SUMMER INTERNSHIP PROJECT FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS IBS AHMEDABAD 2|Page SUMMER INTERNSHIP PROJECT REPORT PROJECT AREA: FINANCIAL AND ECONOMIC RESEARCH AND INDUSTRY ANALYSIS FACULTY GUIDE: PROF. AMIT SARASWAT COMPANY NAME: INFOANALYTICA COMPANY GUIDE: ULLAS UNNIKRISHAN MARAR IBS AHMEDABAD SUBMITTED BY: ANANDARUP GHOSHAL ENROLLMENT NO: 07BS0024 MOBILE NO: 9913815561 E-MAIL: anandarup99@yahoo.co.in 3|Page I am thankful towards my company INFOANALYTICA a division of the Agarwal management consultants for giving me this great opportunity to work into the company for the summer internship project. It was a very good learning experience for me. I am thankful to the CEO of the company Mr. Amit Gupta. My project guide Mr. Ullas Marar has helped me a lot whenever I needed. My regards to my college faculty guide Mr. Amit Saraswat for being extremely helpful during the project. For him this was working as well as a learning experience. During my project I have got help from many other faculties. I am very thankful to Dr. Rashid Saiyeed, Prof. Toby Mammen, Dr. Saji Kumar and Mr. Ravi Gor. I am thankful to our director Prof. Bala Bhaskaran for providing me this great opportunity of the learning. 4|Page Table of Contents INTRODUCTION: ....................

Words: 28359 - Pages: 114

Premium Essay

Asd Asjda Asd

...political parties. This is to avoid Shell companies buying or being perceived to be buying favors. In the United States, Shell Oil Company administers a political action committee (Shell Oil Company Employees’ Political Awareness Committee). It is a voluntary, employee-run and employee funded organization, that contributes money to political parties or individual candidates for political office, or organizations that support them. While Shell Oil Company provides administrative support to the Committee, it does not fund the Committee’s donations nor does it make any political contributions itself. We are calling for change, sharing our expertise and co-operating with governments, companies and other partners. Our Business Principles encourage us to contribute to debates on policy issues that affect our business, our employees or the local communities where we operate. Our advocacy Climate change is one of the biggest challenges we face. We will continue to work with governments to help them set the policy frameworks to create market-based incentives – such as an effective cap-and-trade market for CO2 – that will contribute towards improving energy efficiency and support lower-carbon energy, including carbon capture and storage (CCS) technologies. We advise governments to use different policy instruments for different sectors. For heavy industry and the power sector we advocate an emissions trading systems combined with incentives for the rapid demonstration and......

Words: 7548 - Pages: 31

Premium Essay

Lufkins Industries

...Lufkin Industries Managerial Economics ECP 5705-1 Lufkin Industries is operating in an oligopoly market including some of its direct competitors according to yahoo finance such as CE Franklin Ltd. (CFK), Weatherford International Ltd. (WFT), PVT1 (MAN SE), and Oil & Gas Equipment & Services (Industry). These few large companies operating in an oligopolistic market affects each other when they decide to change their price and output. In the Oil Field Division of Lufkin Industries, producing their output like the Air Balanced Pumping units are very expensive that any change in price or output should be well planned and researched to avoid increase cost especially labor cost. November 1, 2010, Lufkin Industries announced that it has acquired the operating assets of Petro Hydraulic Lift Systems, LLC (PHL). (PRNewswire, 2010). A company that specializes in the design, manufacture and leasing of hydraulic rod pumping units for oil and gas wells. According to the president and chief executive officer John F. “Jay” Click, their acquisition of PHL is a solid strategic fit to their industry. With this big decision acquiring PHL, it is an expansion in the part of Lufkin and this might scare potential entrant to this kind of industry. It will also give a Lufkin an opportunity of having the first-mover advantage in every decisions made in the market that will increase the payoff or profits. They also paid $0.125 per share on its common stock last December 10, 2010....

Words: 2329 - Pages: 10

Premium Essay

Schlumberger

...Financial Statement Analysis 4 Common-Size Balance Sheet 4 Common-Size Income Statement 6 Ratios analysis 8  Liquidity ratios 9  Efficiency ratios 10  Leverage Ratios 11  Profitability Ratios 12  Market Value Indicators 13 DuPont Analysis 14 Statement of Cash Flows 15 III - Conclusion 18 IV – Reference 18 I - Introduction Name: Schlumberger Limited Traded as: SLB Founded: 1926 Headquarters: Houston, Texas Industry: Oilfield services & equipment Main business: Oilfield services * Seismic * Drilling * Mud Logging Employees: 118,000 Important projects: ramp-up in IPM well construction projects in Iraq, Wireline Scanner Family exploration projects, “Excellent in Execution” program, etc. Competitors: Halliburton Company, Baker Hughes Incorporated, FMC Technologies, Inc Schlumberger Limited is the world's leading oilfield services company supplying technology, information solutions and integrated project management that optimize reservoir performance for customers working in the oil and gas industry. Founded in 1926, today the company employs more than 118,000 people of over 140 nationalities working in approximately 85 countries. Schlumberger Oilfield Services supplies a wide range of products and services from formation evaluation through directional drilling, well cementing and stimulation, well completions and productivity to consulting, software, information management and IT infrastructure services that......

Words: 3500 - Pages: 14

Premium Essay

Processing Technology

...MADA 2015 I. Introduction Hydrocarbon or popularly known as oil and gas, is widely used in almost all aspect of human needs, such as fuel in transportation and electricity, lubricants for machines, asphalt for road and also fertilizer in agriculture industry. Because of the importance of the oil and gas, the need of a drilling company’s services become increasing from time to time to support the upstream oil companies in exploring and also exploiting oil from the earth. In doing its business, a drilling company uses a lot of high technology during the exploration and exploitation phase. As we know, technology becomes one of key success factors within all companies. For drilling company, the use of technology is very important because drilling process involving high risk and also high cost process. High risk because the drilling operation is usually conducted in a remote area and it has high potential to explode if overall process goes wrong. Also sometimes, after drilling process has conducted, oil and gas cannot be found in that area. High cost because drilling process entails all of the consequences to focus giant machines and resources to certain area, usually an isolated area, to get the oil and gas. By virtue of its characteristics as non-renewable energy sources and with declining oil and gas fields, nowadays technological change in the industry primarily concerns new ways of accessing new oil and gas reserves (Pierrakakis, 2009). The advancement of technology in......

Words: 1752 - Pages: 8

Premium Essay

Industry Analysis

...Industry Analysis Petro Oil Berkeley College J. Kerr, S. Powder. T. Lopez Background An industry analysis is a useful tool for business strategists. It helps businesses understand various pieces of the marketplace and how these various pieces may be used to gain a competitive advantage. Analyzing an industry you would have to know the industry SWOT. It is important for Petro oil to identify the threats and opportunities facing their business and also to focus their resources on developing unique capabilities that could lead to a competitive advantage. Analyzing Petro Inc., and the heating companies overall will give the company a better understanding of their position relative to other companies that provide similar services. In order to help implement initiatives for Petro Inc. we will analyze some aspects of the company to help identify its strengths and weakness and where there is opportunity for growth. M.A Fessler was the inventor of the historic oil burner. In 1915 he started his own company Called the Fess system company and as we know it today as Petro. The first oil burner was installed in Boston, which resulted in a rapid growth the first few months of Petro's success. Soon after Petro made a huge decision of entering into its first contract to purchase fuel oil. Bases out of Stamford, Connecticut, today Petro Inc. provides heating oil across the United States. Petro Inc. also has......

Words: 1418 - Pages: 6

Premium Essay

Oil Industry

...ABSTRACT The purpose of this project is to determine multinational corporate sustainability within the oil industry and perform country analysis, industry analysis, and analysis of firm’s international strategies. INTRODUCTION The five oil companies that we chose from the 2010 Global Fortune 500 are ExxonMobil, Sinopec, ConocoPhillips, Petrobras, and Lukoil. In our project, we performed analysis on the 10K report of domestic companies, as in ExxonMobil and ConocoPhillips and the 20F report of foreign companies, as in Sinopec, Petrobras and Lukoil. A comparison was done on the five companies to determine if there exists a corelation between sustainability perspective and financial performance. OIL INDUSTRY ANALYSIS Oil accounts for a large percentage of the world’s energy consumption, ranging from 32% for Europe and Asia, and 53% for the Middle East. The world consumes 30 billion barrels of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. In 2009, world energy consumption decreased for the first time in 30 years (-1.1%), as a result of the financial and economic crisis (GDP drop by 0.6% in 2009). This evolution is the result of two contrasting trends. Energy consumption growth remained vigorous in several developing countries, specifically in Asia (+4%). Conversely, in OECD, consumption was severely cut by 4.7% in 2009 and was thus almost down to its 2000 levels. In North America, Europe and......

Words: 4526 - Pages: 19

Premium Essay

Sales

...September 15, 2013 LRT Hydraulic Systems and Controls Marketing Plan 2.0 Situation Analysis The oil and gas market in Houston, TX and globally is strong based on the current rig count by Baker Hughes that posted 1,768 rotary rigs working in North America on September 13, 2013 (Pugliaresi & Snow, 2013, para. 1). This means that there is a great opportunity for a new hydraulic systems and controls company to enter the market place and capture a share of the business. The owners of LRT have over 80 years of combined experience designing and selling systems in the oil and gas market and have seen many short comings with the existing systems and competitors that cater to the oil and gas sector. While there are several large players and many smaller players that design and build hydraulic power units and controls, most of them have many short comings that cannot be ignored. The only problem is that no company has been able to set itself apart from the competition, so clients are forced to make do with the choices that they have because there are not many feasible options. It is important to understand that land and offshore rigs alike require hydraulic systems and controls to operate the many drilling functions that are required to drill for oil and gas. That being said the opportunities are significant and the timing could not be better to enter as a start-up company in the oil and gas market sector. 2.1 Market Summary The overall market for hydraulic power units and......

Words: 4039 - Pages: 17