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Oil and Gas Services Industry Analysis

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Submitted By akens
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

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