Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (32066)	11/23/1998 11:29:00 PM
From: Tomas	Respond to of 95453

Restructuring of the oil industry is altering the role OS firms play: Halliburton Service firms' role Oil & Gas Journal, November 23 Anne Rhodes Recent years have brought about a restructuring of the oil industry, and this shift is altering the role that oil field service and supply firms play in the industry. This is the view of Jed DiPaolo, senior vice-president of global business development for Halliburton Energy Services, Houston. As a result of layoffs, major oil companies are reducing their technology skills, said DiPaolo at the ETEC session. "Every time there's a cut, there seems to be more and more technology being pushed out. That has caused a significant change for us." In the past, said DiPaolo, the majors focused on applied technology, and the service companies on product development around these applications. While service firms were able to develop products that were successful in the field, they didn't really understand why they were successful, because those companies didn't have the necessary reservoir experience, he said. "The scary thing is that, as the majors start cutting back on this applied technology, we're having to change," he continued. "That resource that we could rely on is drying up." As a service provider, Halliburton is going to have to spend more on applied technology development, said DiPaolo: "We didn't have that requirement before. We didn't really have the expertise. We're having to develop that." Halliburton also is having to learn how to integrate its technologies across different business units. "We're starting to understand that, the more they interact, the more value you can create." For this reason, said DiPaolo, service firms will have to devise new development methods. "There's a whole group of technologies that's going to have to evolve," said DiPaolo, "and the evolution will be different than it was in the past." He predicts that the future of E&P technology will include: Riserless drilling. Rigless drilling. Composite drill pipe and tubing. 3D pay-zone steering. Expanded casing. Ultra-extended-reach wells. Downhole processing. Real-time reservoir management. Virtual reality. DiPaolo says that, as the majors put increased pressure on service terms to develop new technologies, independents can benefit: "Previously, the major oil companies had the money, resources, reservoirs, and technology to dominate the industry. As service companies understand technology more, independents can implement new technologies previously beyond their grasp. "But don't get enamored with just technology," DiPaolo warned. "You must integrate it, and you must commercialize it."