Oilfield Markets Forecast HAL BHI Artificial Lift Market
Oilfield Markets
Forecast HAL + BHI
Artificial Lift Market (millions) $18, 000 $16, 000 When oil prices were <$80, there was a tight correlation between oil price and lift spending. $14, 000 $12, 000 $10, 000 $8, 000 But above $90, spending on lift just keeps going up regardless of oil price! $6, 000 $4, 000 $2, 000 $0 $0 $50 $100 Average Oil Price $150
Drill Bit Market (millions) $7, 000 $6, 000 In the last 5 years, there has been almost no correlation between oil price and spending on drill bits. $5, 000 $4, 000 $3, 000 This pattern is repeated in every market segment. $2, 000 $1, 000 $0 $0 $50 $100 Average Oil Price $150
2, 500 2, 000 Footage declines 10% 1, 500 1, 000 500 0 2011 2012 2013 2014 2015
PERMIAN BASIN Drilling & Completion Cost Index 1. 4 Q 1 2011 = 1. 00 1. 2 Well costs decline 10% 1 0. 8 0. 6 0. 4 0. 2 0 Q 1 15 Q 1 14 Q 1 13 Q 1 12 Q 1 11 Q 1 10 Q 1 09 Q 1 08
$500, 000 $450, 000 in s GR $400, 000 CA % 11 $350, 000 05 0 2 ce Offshore Drilling 13% Offshore Construct Millions $300, 000 10% 46% $250, 000 Fracturing Land Drilling 9% OCTG $200, 000 8% $150, 000 4% $100, 000 5% 5% Subsea Rig Eqpt Others $50, 000 $0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Artificial Lift Casing & Tubing Services Cementing Coiled Tubing Services Completion Equipment & Services Contract Compression Services Directional Drilling Services Downhole Drilling Tools Drill Bits Drilling & Completion Fluids Floating Production Services Geophysical Equipment & Services Hydraulic Fracturing Inspection & Coating Land Contract Drilling Logging-While-Drilling Offshore Construction Services Offshore Contract Drilling Oil Country Tubular Goods Petroleum Aviation Production Testing Rental & Fishing Services Rig Equipment Solids Control & Waste Management Specialty Chemicals Subsea Equipment Supply Vessels Surface Data Logging Surface Equipment Unit Manufacturing Well Servicing
Artificial Lift Casing & Tubing Services Cementing Coiled Tubing Services Completion Equipment & Services Contract Compression Services Directional Drilling Services Downhole Drilling Tools Drill Bits Drilling & Completion Fluids Floating Production Services Geophysical Equipment & Services Hydraulic Fracturing Inspection & Coating Land Contract Drilling Logging-While-Drilling Offshore Construction Services Offshore Contract Drilling Oil Country Tubular Goods Petroleum Aviation Production Testing Rental & Fishing Services Rig Equipment Solids Control & Waste Management Specialty Chemicals Subsea Equipment Supply Vessels Surface Data Logging Surface Equipment Unit Manufacturing Well Servicing
200000 180000 160000 140000 Millions 120000 100000 80000 60000 40000 20000 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
160000 140000 120000 Millions 100000 80000 60000 40000 20000 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
100000 90000 80000 70000 Millions 60000 50000 40000 30000 20000 10000 0 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Why this, why now? The issue of competition
To address the needs of international & national oil companies outside North America.
Lift Run Casing Cementing Coiled Tubing Completions Directional Bits Mud Frac LWD Chemicals Wireline BHI HAL SLB
Lift Run Casing Cementing Coiled Tubing Completions Directional Bits Mud Frac LWD Chemicals Wireline BHI HAL SLB
PERMIAN BASIN FRAC EAGLE FORD CEMENT Less than 1% 14% 24% 1% 1% 2% 2% 3% 9% 21% 10% 11% Halliburton Baker Hughes Pioneer Pumping Schlumberger FTS International Great White/Archer Nabors Universal Cudd Weatherford Trican Frac Specialists Basic Energy Services Other 4% 1% 1% 2% 4% Halliburton Baker Hughes 4% 4% 39% Schlumberger Compass Cementing O-Tex Pumping 18% Superior Energy Services Trican 22% Crest
Oilfield Markets
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