Baker Hughes 2004 Annual Report Download - page 56

Through฀its฀Pipeline฀Management฀Group฀(“PMG”),฀Baker฀
Petrolite฀also฀offers฀a฀variety฀of฀products฀and฀services฀for฀the฀
pipeline฀transportation฀industry.฀To฀improve฀efficiency,฀Baker฀
Petrolite฀offers฀custom฀turnkey฀cleaning฀programs฀that฀combine฀
chemical฀treatments฀with฀brush฀and฀scraper฀usage.฀Efficiency฀
can฀also฀be฀improved฀by฀adding฀polymer-based฀drag฀reduction฀
agents฀to฀reduce฀the฀slowing฀effects฀of฀friction฀between฀the฀
pipeline฀walls฀and฀the฀fluids฀within,฀thus฀increasing฀through-
put฀and฀pipeline฀capacity.฀Additional฀services฀allow฀pipelines฀to฀
operate฀more฀safely.฀These฀include฀inspection฀and฀internal฀cor-
rosion฀assessment฀technologies,฀which฀physically฀confirm฀the฀
structural฀integrity฀of฀the฀pipeline.฀In฀addition,฀PMG’s฀flow-
modeling฀capabilities฀can฀identify฀high-risk฀segments฀of฀a฀pipe-
line฀to฀ensure฀proper฀mitigation฀programs฀are฀in฀place.
Baker฀Petrolite฀also฀provides฀chemical฀technology฀solutions฀
to฀other฀industrial฀markets฀throughout฀the฀world,฀including฀
petrochemicals,฀fuel฀additives,฀plastics,฀imaging,฀adhesives,฀
steel฀and฀crop฀protection.
The฀main฀driver฀of฀customer฀purchasing฀decisions฀in฀฀
specialty฀chemicals฀is฀superior฀application฀of฀technology฀and฀
service฀delivery.฀Specific฀opportunities฀for฀competitive฀differen-
tiation฀include:
•฀ improved฀levels฀of฀production฀or฀throughput,
•฀ reduced฀maintenance฀costs฀and฀frequency,
•฀ lower฀treatment฀costs,
•฀ lower฀treatment฀intervals,฀and
•฀ successful฀resolution฀of฀environmental฀issues.
Baker฀Petrolite’s฀primary฀oilfield฀specialty฀chemical฀compet-
itors฀are฀GE฀Water฀Technologies,฀Nalco฀Company,฀Champion฀
Technologies฀and฀various฀other฀competitors.
Key฀business฀drivers฀for฀Baker฀Petrolite฀include฀oil฀and฀฀
natural฀gas฀production฀levels,฀the฀number฀of฀producing฀wells,฀
and฀the฀current฀and฀expected฀future฀price฀of฀both฀oil฀and฀฀
natural฀gas.
Centrilift
Centrilift฀is฀a฀leading฀manufacturer฀and฀supplier฀of฀electri-
cal฀submersible฀pump฀systems฀(“ESPs”)฀and฀progressing฀cavity฀
pump฀systems฀(“PCPs”).฀
Electrical฀Submersible฀Pump฀Systems.฀ESPs฀lift฀high฀
quantities฀of฀oil฀or฀oil฀and฀water฀from฀wells฀that฀do฀not฀flow฀
under฀their฀own฀pressure.฀These฀“artificial฀lift”฀systems฀con-
sist฀of฀a฀centrifugal฀pump฀and฀electric฀motor฀installed฀in฀the฀
wellbore,฀armored฀electric฀cabling฀to฀provide฀power฀to฀the฀
downhole฀motor฀and฀a฀surface฀controller.฀Centrilift฀designs,฀
manufactures,฀markets฀and฀installs฀all฀the฀components฀of฀ESP฀
systems฀and฀also฀offers฀modeling฀software฀to฀size฀ESPs฀and฀
simulate฀operating฀performance.฀ESPs฀may฀be฀used฀in฀onshore฀
or฀offshore฀applications฀and฀are฀primarily฀used฀in฀mature฀oil฀
producing฀reservoirs.
Progressing฀Cavity฀Pump฀Systems.฀PCPs฀are฀a฀form฀of฀
artificial฀lift฀comprised฀of฀a฀downhole฀progressing฀cavity฀pump฀
powered฀by฀either฀a฀downhole฀electric฀motor฀or฀a฀rod฀turned฀
by฀a฀motor฀on฀the฀surface.฀PCP฀systems฀are฀preferred฀when฀the฀
fluid฀to฀be฀lifted฀is฀viscous฀or฀when฀the฀volume฀is฀significantly฀
less฀than฀could฀be฀economically฀lifted฀with฀an฀ESP฀system.฀
Specific฀opportunities฀for฀competitive฀differentiation฀
include:
•฀ system฀reliability,
•฀ system฀run-life,
•฀ optimizing฀production,
•฀ operating฀efficiency,฀and
•฀ service฀delivery.
Centrilift’s฀primary฀competitors฀in฀the฀ESP฀market฀are฀฀
Schlumberger,฀John฀Wood฀Group฀PLC฀and฀various฀other฀฀
competitors฀and฀in฀the฀PCP฀market฀are฀Weatherford,฀฀
Robbins฀&฀Myers,฀Inc.฀and฀various฀other฀competitors.
Key฀business฀drivers฀for฀Centrilift฀include฀oil฀production฀
levels,฀as฀well฀as฀the฀current฀and฀expected฀future฀price฀of฀oil,฀
the฀volume฀of฀water฀produced฀in฀mature฀basins฀and฀the฀
removal฀of฀water฀from฀coal฀bed฀methane฀wells.
Hughes฀Christensen
Hughes฀Christensen฀is฀a฀leading฀manufacturer฀and฀supplier฀
of฀drill฀bits,฀primarily฀Tricone®฀roller฀cone฀bits฀and฀fixed-cutter฀
polycrystalline฀diamond฀compact฀(“PDC”)฀bits,฀to฀the฀world-
wide฀oil฀and฀natural฀gas฀industry.฀The฀primary฀objective฀of฀a฀
drill฀bit฀is฀to฀drill฀a฀hole฀as฀efficiently฀as฀possible.
Tricone®฀Bits.฀Tricone®฀drill฀bits฀employ฀either฀hardened฀
steel฀teeth฀or฀tungsten฀carbide฀insert฀cutting฀structures฀
mounted฀on฀three฀rotating฀cones.฀These฀bits฀work฀by฀crushing฀
and฀shearing฀the฀formation฀rock฀as฀they฀are฀turned.฀Tricone®฀
drill฀bits฀have฀a฀wide฀application฀range.
PDC฀Bits.฀PDC฀(also฀known฀as฀“Diamond”)฀bits฀use฀fixed฀
position฀cutters฀that฀shear฀the฀formation฀rock฀with฀a฀milling฀
action฀as฀they฀are฀turned.฀In฀many฀softer฀and฀less฀variable฀
applications,฀PDC฀bits฀offer฀higher฀penetration฀rates฀and฀a฀lon-
ger฀life฀than฀Tricone®฀bits.฀A฀rental฀market฀has฀developed฀for฀
PDC฀bits฀as฀improvements฀in฀bit฀life฀and฀bit฀repairs฀allow฀a฀bit฀
to฀be฀used฀to฀drill฀multiple฀wells.
The฀main฀driver฀of฀customer฀purchasing฀decisions฀in฀drill฀
bits฀is฀the฀value฀added,฀usually฀measured฀in฀terms฀of฀savings฀in฀
total฀operating฀costs฀per฀distance฀drilled.฀Specific฀opportunities฀
for฀competitive฀differentiation฀include:
•฀ improving฀the฀rate฀of฀penetration,
•฀ extending฀bit฀life,฀and
•฀ selecting฀the฀optimal฀bit฀for฀each฀section฀to฀be฀drilled.
Hughes฀Christensen’s฀primary฀competitors฀in฀the฀oil฀฀
and฀natural฀gas฀drill฀bit฀market฀are฀Smith,฀Halliburton,฀Grant฀
Prideco,฀Inc.฀and฀various฀other฀competitors.
Key฀business฀drivers฀for฀Hughes฀Christensen฀include฀the฀
number฀of฀drilling฀rigs฀operating,฀as฀well฀as฀the฀current฀and฀
expected฀future฀price฀of฀both฀oil฀and฀natural฀gas.
INTEQ
INTEQ฀is฀a฀leading฀supplier฀of฀drilling฀and฀evaluation฀฀
services,฀which฀include฀directional฀drilling,฀measurement-฀
while-drilling฀(“MWD”)฀and฀LWD฀services.฀
Directional฀Drilling.฀Directional฀drilling฀services฀are฀used฀
to฀guide฀a฀well฀along฀a฀predetermined฀path฀to฀optimally฀
recover฀hydrocarbons฀from฀the฀reservoir.฀These฀services฀are฀
used฀to฀accurately฀drill฀vertical฀wells,฀deviated฀or฀directional฀
wells฀(which฀deviate฀from฀vertical฀by฀a฀planned฀angle฀and฀
6฀฀฀฀฀Baker฀Hughes฀Incorporated