Baker Hughes 2014 Annual Report Download - page 7

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Technologies within their first 12
months of commercialization earned
more than $1 billion in revenue – a
20% increase over 2013 results and
a testament to the “operationalizing
innovation” process we pioneered
during the year.
The outcomes of the process reflect
some of the industry’s most ground-
breaking, and Baker Hughes’ most
lucrative, technologies and solutions:
The SHADOW™ frac plug
leverages our strengths in
both completion systems and
materials science to eliminate
the need for milling out plugs
following well completions.
In 2014, sales for the SHADOW™
frac plug grew exponentially
quarter to quarter.
The FASTrak™ logging-while-
drilling fluid analysis and
sampling service – the world’s
only commercially available
service of its type – saw strong
demand in exploration markets
and was deployed in 13 countries.
The ProductionWave™ flexible
production solution, which came
to market in 2013 at exactly
the right time at the right price
point, has now been deployed
in approximately 5,000 wells
– primarily in North America,
but with a growing number of
installations in international
markets. Its success helped to
make artificial lift our fastest-
growing business in 2014.
EARNINGSFROMEXECUTION
Beyond technology, our operating
segments delivered strong growth
and increased margins from
a relentless focus on execution.
In North America, we saw the
positive outcome of a multi-year
plan to transform our pressure
pumping business. We modernized
our supply chain. We deployed new
technologies that improved wellsite
efficiencies. And we pursued more
contracts with larger, more efficient
customers. In the fourth quarter,
this plan paid off, with margins in
our U.S. pressure pumping business
at their highest levels in three years.
We also recognize that our
high-technology product offerings
are well suited to deepwater
operations, where service reliability
is paramount. During the year,
we expanded our share of well
construction business, with
significant contract awards in Brazil,
Norway, Angola, and the Middle East.
At the same time, we made some
hard decisions about businesses
that weren’t generating satisfactory
returns.
In Iraq, our decision to demobilize
on a major contract contributed
to better margins in our Middle
East/Asia Pacific region. Shutting
down our onshore operations
in Libya and reorganizing our North
Optimized Well Production.
Building on our portfolio and commercializing new solutions