National Oilwell Varco 2015 Annual Report Download - page 13

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Table of Contents
Customers and Competition. Customers for Wellbore Technologies include major and independent oil and gas companies, national oil companies, drilling
and workover contractors, oilfield equipment and product distributors and other manufacturers, oilfield service companies, steel mills, rental companies, and
other industrial companies. The Company’s competitors include: Baker Hughes; Drill Pipe Masters; Frank’s International; Future Pipe; Halliburton; Hanwei;
Hilong; Patterson Tubular Services; Precision Tube; ShawCor; Schlumberger; Superior Energy Services; Texas Steel Conversion; Vallourec & Mannesmann
and Weatherford International, along with a number of smaller regional competitors.

The Company’s Completion & Production Solutions segment integrates technologies for well completions and oil and gas production. The segment designs,
manufactures, and sells equipment and technologies needed for hydraulic fracture stimulation, including pressure pumping trucks, blenders, sanders,
hydration units, injection units, flowline, manifolds and wellheads; well intervention, including coiled tubing units, coiled tubing, and wireline units and
tools; offshore production, including composite pipe, process equipment, floating production systems and subsea production technologies; and, onshore
production including surface transfer and progressive cavity pumps, positive displacement reciprocating pumps, pressure vessels, and artificial lift systems.
Completion & Production Solutions supports service companies and oil and gas companies. Demand for Completion & Production Solutions’ products
depends on the level of oilfield completions and workover activity by oilfield service companies and drilling contractors and capital spending plans by oil
and gas companies and oilfield service companies.
Coiled Tubing Equipment. Coiled tubing consists of flexible steel tubing manufactured in a continuous string and spooled on a reel. It can often extend over
twenty thousand feet in length and is run in and out of the wellbore at a high rate of speed by a hydraulically operated coiled tubing unit. A coiled tubing
unit is typically mounted on a truck, semi-trailer or skid (steel frames on which portable equipment is mounted to facilitate handling with cranes for offshore
use) and consists of a hydraulically operated tubing reel or drum, an injector head which pushes or pulls the tubing in or out of the wellbore, and various
power and control systems. Coiled tubing is typically used with sophisticated pressure control equipment which permits the operator to perform workover
operations on a live well. The Completion & Production Solutions segment manufactures and sells both coiled tubing units and the ancillary pressure control
equipment used in these operations. Currently, most coiled tubing units are used in well remediation and completion applications. The Company believes
that advances in the manufacturing process of coiled tubing, tubing fatigue protection and the capability to manufacture larger diameter and increased wall
thickness coiled tubing strings have resulted in increased uses and applications for these products. For example, some well operators are now using coiled
tubing in drilling applications such as slim-hole re-entries of existing wells.
Wireline Equipment. The Company’s wireline products include wireline drum units, which consist of a spool or drum of wireline cable, mounted in a mobile
vehicle or skid, which works in conjunction with a source of power (an engine mounted in the vehicle or within a separate “power pack” skid). The wireline
drum unit is used to spool wireline cable into or out of a well, in order to perform surveys inside the well, sample fluids from the bottom of the well, retrieve or
replace components from inside the well, or to perform other well remediation or survey operations. The wireline used may be “slick line”, which is
conventional single-strand steel cable used to convey tools in or out of the well, or “electric line”, which contains an imbedded single-conductor or multi-
conductor electrical line which permits communication between the surface and electronic instruments attached to the end of the wireline at the bottom of the
well. Wireline units are usually used in conjunction with a variety of pressure control equipment which permits safe access into wells while they are flowing
and under pressure at the surface. The Company engineers and manufactures a broad range of pressure control equipment for wireline operations, including
wireline blowout preventers, strippers, packers, lubricators and grease injection units. Additionally, the Company makes wireline rigging equipment such as
mast trucks, and skidded masts for offshore rig-up.
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