National Oilwell Varco 2000 Annual Report Download - page 4

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service providers, or are forward integrating suppliers operations to achieve cost and capital improvements. We
believe we are well positioned to provide these services as a result of our:
- large and geographically diverse network of distribution service centers in major oil and gas producing
areas;
- strong relationship with a large community of industry suppliers;
- knowledge of customers’ procurement processes, suppliers’ capabilities and products’ performance; and
- information systems that offer customers and suppliers enhanced e-commerce capabilities.
In addition, the integration of our distribution expertise, extensive network and growing base of customer alliances
provides an increased opportunity for cost-effective marketing of our manufactured parts and equipment.
Continuing to Make Acquisitions That Enhance our Product Line
We believe the oilfield service and equipment industry will continue to experience consolidation as businesses seek
to align themselves with other market participants in order to gain access to broader markets and integrated product
offerings. From 1997 through January 2001, National Oilwell has made a total of nineteen acquisitions and plans to
continue to participate in this trend.
OPERATIONS
Products and Technology
National Oilwell designs, manufactures and sells drilling systems and components for both land and offshore
drilling rigs as well as complete land drilling and well servicing rigs. The major mechanical components include
drawworks, mud pumps, top drives, SCR houses, solids control equipment, traveling equipment and rotary tables.
These components are essential to the pumping of fluids and hoisting, supporting and rotating of the drill string.
Many of these components are designed specifically for applications in offshore, extended reach and deep land
drilling. This equipment is installed on new rigs and often replaced during the upgrade and refurbishment of
existing rigs.
Masts, derricks and substructures are designed and manufactured for use on land rigs and on fixed and mobile
offshore platforms, and are suitable for drilling applications to depths of up to 30,000 feet or more. Other products
include pedestal cranes, reciprocating and centrifugal pumps and fluid end expendables for all major manufacturers'
pumps. Our business includes the sale of replacement parts for our own manufactured machinery and equipment.
We also design and produce control and data acquisition systems for drilling related operations and automated and
remotely controlled machinery for drilling rigs. Products include the Cyberbase™ operator system which
incorporates computer software, keypads and joysticks rather than traditional gauges, lights and switches. The
Cyberbase™ system forms the basis for the state-of-the-art driller’s cabin. Another product is the automated pipe
handling system that provides an efficient and cost effective method of joining lengths of drill pipe or casing.
While offering a complete line of conventional rigs, National Oilwell has extensive experience in providing rig
designs to satisfy requirements for harsh or specialized environments. Such products include drilling and well
servicing rigs designed for the Arctic, highly mobile drilling and well servicing rigs for jungle and desert use,
modular well servicing rigs for offshore platforms and modular drilling facilities for North Sea platforms. We also
design and produce fully integrated drilling solutions for the topside of offshore rigs.
National Oilwell designs and manufactures drilling motors, drilling jars and specialized drilling tools for rent and
sale. We also design and manufacture a complete line of fishing tools used to remove objects stuck in the wellbore.