Overview Of Global Oil Service And Contract Drilling Industry (October 2007).pdf

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OverviewOverview ofof GlobalGlobal OilOil ServiceService AndAnd ContractContract DrillingDrilling IndustryIndustry
20072007 OilOil && MoneyMoney ConferenceConference
London,London, EnglandEngland
OctoberOctober 31,31, 20072007
By:By:
MatthewMatthew . Simmons,Simmons, ChairmanChairman
SimmonsSimmons pany InternationalInternational
IsIs BiggestBiggest RiskRisk OfOf MeetingMeeting OilOil AndAnd GasGas DemandDemand
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„ Data on “rig” and other oil service assets is skimpy.
„ Data ranking asset quality is non-existent.
„ Oil service/drilling industry supported by massive
employee base:
– Demographic data is poor
– Data on number of key personnel nearing retirement also
skimpy
„ World is planning on vast increases in oil and gas
supply.
„ To make this happen, world needs far more rigs.
SIMMONS PANY
INTERNATIONAL
MostMost OilOil AndAnd GasGas PunditsPundits OverlookOverlook OilOil
ServiceService IndustryIndustry
„ The oil service prises scores of different services and
products to support oil and gas exploration and production.
„ Thousands panies provide these varied services.
„ 95% of oil field technology is created by panies.
„ In order to find and produce oil, a well must be drilled.
The service and equipment sector of the oil and gas industry
is where “rubber meets the road”
SIMMONS PANY
INTERNATIONAL
ThisThis SectorSector SufferedSuffered ThroughThrough AA 25-Year25-Year DepressionDepression
„ Sector had dramatic growth 5000 1500
from 1970 – 1981: 4500 . Rig Count 1400
International Rig Count
– . rig count rose fold 4000 1300
– International rig count rose 3500 1200
3000 1100
2500 1000
„ On 12/31/81, . rig count 2000 900
almost 4,600. . Rig Count 1500 800
1000 700
International Rig Count Rig International
„ By end of decade, 90% of 500 600
companies disappeared. 0 500
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