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presence฀and฀quantity฀of฀hydrocarbons฀present.฀This฀informa-
tion฀is฀used฀to฀determine฀the฀next฀steps฀in฀drilling฀and฀com-
pleting฀the฀well.
Wireline฀Completion฀and฀Production฀Services.฀Wireline฀
completion฀and฀production฀services฀include฀using฀wireline฀
instruments฀to฀evaluate฀well฀integrity,฀perform฀mechanical฀
intervention฀and฀perform฀cement฀evaluations.฀Wireline฀instru-
ments฀can฀also฀be฀run฀in฀producing฀wells฀to฀perform฀produc-
tion฀logging.฀Baker฀Atlas฀(and฀Baker฀Oil฀Tools)฀also฀provide฀
perforating฀services,฀which฀involve฀puncturing฀a฀well’s฀steel฀
casing฀and฀cement฀sheath฀with฀explosive฀charges.฀This฀creates฀
a฀fracture฀in฀the฀formation฀and฀provides฀a฀path฀for฀hydrocar-
bons฀in฀the฀formation฀to฀enter฀the฀wellbore฀and฀be฀produced.
Baker฀Atlas’฀services฀allow฀oil฀and฀natural฀gas฀companies฀
to฀define,฀manage฀and฀reduce฀their฀exploration฀and฀produc-
tion฀risk.฀As฀such,฀the฀main฀driver฀of฀customer฀purchasing฀
decisions฀is฀the฀value฀added฀by฀formation฀evaluation฀and฀wire-
line฀completion฀and฀production฀services.฀Specific฀opportunities฀
for฀competitive฀differentiation฀include:
•฀ data฀acquisition฀efficiency,
•฀ the฀sophistication฀and฀accuracy฀of฀measurements,
•฀ the฀ability฀to฀interpret฀the฀information฀gathered฀to฀quan-
tify฀the฀hydrocarbons฀producible฀from฀the฀formation,฀and
•฀ the฀ability฀to฀differentiate฀services฀which฀can฀run฀exclu-
sively฀or฀more฀efficiently฀on฀wireline฀from฀services฀which฀
can฀run฀on฀either฀wireline฀or฀drill฀pipe.
Baker฀Atlas’฀primary฀formation฀evaluation฀and฀wireline฀
completion฀and฀perforating฀competitors฀are฀Schlumberger,฀Halli-
burton฀Company฀(“Halliburton”),฀Precision฀Drilling฀Corporation,฀
Expro฀International฀Group฀PLC฀and฀various฀other฀competitors.
Key฀business฀drivers฀for฀Baker฀Atlas฀include฀the฀number฀of฀
drilling฀and฀workover฀rigs฀operating,฀as฀well฀as฀the฀current฀and฀
expected฀future฀price฀of฀both฀oil฀and฀natural฀gas.
Baker฀Hughes฀Drilling฀Fluids
Baker฀Hughes฀Drilling฀Fluids฀is฀a฀major฀provider฀of฀drilling฀
fluids฀(also฀called฀“mud”),฀and฀a฀provider฀of฀completion฀fluids฀
(also฀called฀“brines”)฀and฀fluids฀environmental฀services.฀Drilling฀
fluids฀are฀an฀important฀component฀of฀the฀drilling฀process฀and฀
are฀pumped฀from฀the฀surface฀through฀the฀drill฀string,฀exiting฀
nozzles฀in฀the฀drill฀bit฀and฀traveling฀back฀up฀the฀wellbore฀
where฀the฀fluids฀are฀recycled.฀This฀process฀cleans฀the฀bottom฀
of฀the฀well฀by฀transporting฀the฀cuttings฀to฀the฀surface฀while฀
also฀cooling฀and฀lubricating฀the฀bit฀and฀drill฀string.฀Drilling฀flu-
ids฀typically฀contain฀barite฀or฀bentonite฀to฀give฀them฀weight฀
that฀enables฀the฀fluid฀to฀hold฀the฀wellbore฀open฀and฀stabilize฀
it.฀Additionally,฀the฀fluids฀control฀downhole฀pressures฀and฀seal฀
porous฀sections฀of฀the฀wellbore.฀To฀ensure฀maximum฀efficiency฀
and฀wellbore฀stability,฀drilling฀fluids฀are฀often฀customized฀by฀
the฀wellsite฀engineer.฀For฀drilling฀through฀the฀reservoir฀itself,฀
Baker฀Hughes฀Drilling฀Fluids’฀drill-in฀or฀completion฀fluids฀pos-
sess฀properties฀that฀minimize฀formation฀damage.฀The฀fluids฀
environmental฀services฀of฀Baker฀Hughes฀Drilling฀Fluids฀also฀
provide฀equipment฀and฀services฀to฀separate฀the฀drill฀cuttings฀
from฀the฀drilling฀fluids฀and฀re-inject฀the฀processed฀cuttings฀into฀
a฀specially฀prepared฀well,฀or฀to฀transport฀and฀dispose฀of฀the฀
cuttings฀by฀other฀means.
The฀main฀driver฀of฀customer฀purchasing฀decisions฀in฀drill-
ing฀fluids฀is฀cost฀efficiency.฀Specific฀opportunities฀for฀competi-
tive฀differentiation฀include:
•฀ improvements฀in฀drilling฀efficiency,
•฀ minimizing฀formation฀damage,฀and
•฀ the฀environmentally฀safe฀handling฀and฀disposal฀of฀drilling฀
fluids฀and฀cuttings.
Baker฀Hughes฀Drilling฀Fluids’฀primary฀competitors฀include฀
Halliburton,฀M-I,฀LLC,฀Newpark฀Resources,฀Inc.,฀TETRA฀Tech-
nologies,฀Inc.฀and฀various฀other฀competitors.
Key฀business฀drivers฀for฀Baker฀Hughes฀Drilling฀Fluids฀
include฀the฀number฀of฀drilling฀rigs฀operating,฀as฀well฀as฀the฀
current฀and฀expected฀future฀price฀of฀both฀oil฀and฀natural฀gas.
Baker฀Oil฀Tools
Baker฀Oil฀Tools฀is฀a฀leading฀provider฀of฀downhole฀comple-
tion,฀workover฀and฀fishing฀equipment฀and฀services.
Completions.฀The฀economic฀success฀of฀a฀well฀depends฀in฀
large฀part฀on฀how฀the฀well฀is฀completed.฀Completions฀are฀the฀
equipment฀installed฀in฀a฀well฀after฀it฀is฀drilled฀to฀allow฀the฀effi-
cient฀and฀safe฀production฀of฀oil฀and฀natural฀gas฀to฀the฀surface.฀
Baker฀Oil฀Tools’฀completion฀systems฀are฀matched฀to฀the฀forma-
tion฀and฀reservoir฀for฀optimum฀production฀and฀can฀employ฀a฀
variety฀of฀products฀and฀services฀including:
•฀ Liner฀hangers,฀which฀suspend฀a฀section฀of฀steel฀casing฀
(also฀called฀a฀liner)฀inside฀the฀bottom฀of฀the฀previous฀sec-
tion฀of฀casing.฀Its฀expandable฀slips฀grip฀the฀inside฀of฀the฀
casing฀and฀support฀the฀weight฀of฀the฀liner฀below.
•฀ Packers,฀which฀seal฀the฀annular฀space฀between฀the฀steel฀pro-
duction฀tubing฀and฀the฀casing.฀These฀tools฀control฀the฀flow฀
of฀fluids฀in฀the฀well฀and฀protect฀the฀casing฀above฀and฀below฀
from฀reservoir฀pressures฀and฀corrosive฀formation฀fluids.
•฀ Flow฀control฀equipment,฀which฀controls฀and฀adjusts฀the฀
flow฀of฀downhole฀fluids.฀Typical฀flow฀control฀devices฀
include฀sliding฀sleeves,฀which฀can฀be฀opened฀or฀closed฀
to฀allow฀or฀limit฀production฀from฀a฀particular฀portion฀of฀
a฀reservoir.฀Flow฀control฀can฀be฀accomplished฀from฀the฀฀
surface฀via฀wireline฀or฀downhole฀via฀hydraulic฀or฀electric฀
motor-based฀automated฀systems.
•฀ Subsurface฀safety฀valves,฀which฀shut฀off฀all฀flow฀of฀fluids฀
to฀the฀surface฀in฀the฀event฀of฀an฀emergency,฀thus฀saving฀
the฀well฀and฀preventing฀pollution฀of฀the฀environment.฀
These฀valves฀are฀required฀in฀substantially฀all฀offshore฀wells.
•฀ Sand฀control฀equipment,฀which฀includes฀gravel฀pack฀tools,฀
sand฀screens฀and฀fracturing฀fluids.฀These฀tools฀and฀related฀ser-
vices฀are฀used฀in฀loosely฀consolidated฀formations฀to฀prevent฀
the฀production฀of฀formation฀sand฀with฀the฀hydrocarbons.
•฀ Advanced฀completion฀technologies,฀which฀include฀multilat-
eral฀systems,฀intelligent฀well฀systems฀and฀expandable฀metal฀
technologies.฀Multilateral฀completion฀systems฀enable฀two฀
or฀more฀zones฀to฀be฀produced฀from฀a฀single฀well,฀using฀
multiple฀horizontal฀branches.฀Intelligent฀Completions®฀use฀
real-time,฀remotely฀operated฀downhole฀systems฀to฀control฀
the฀flow฀of฀hydrocarbons฀from฀one฀or฀more฀zones.฀Expand-
able฀metal฀technology฀involves฀the฀permanent฀downhole฀
expansion฀of฀a฀variety฀of฀tubular฀products฀used฀in฀drilling,฀
completion฀and฀well฀remediation฀applications.
4฀฀฀฀฀Baker฀Hughes฀Incorporated