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“ For Baker Hughes, innovation is both our heritage
and the foundation for our future. It is the way
we look at possibilities and determine how to
make them realities.”
Innovation without commercialization, however, is simply a science experiment. Several of our young tech-
nologies gained traction throughout 2013, demonstrating our ability to rapidly develop and commercialize
technologies that signifi cantly impact the market.
• The ground-breaking ProductionWave™ solution, delivered in a matter of months, improves reserve
recovery in unconventional oil plays by combining the superior drawdown of our electrical submersible
pumping (ESP) systems with products and services from our Completions Services and Upstream Chemi-
cals product lines. Based on our FLEXPump™ series ESP technology, the
ProductionWave
solution offers
a range of commercial models to meet the customer’s unique business objectives.
• The SHADOW™ series frac plugs with disintegrating frac balls, also developed for the unconventionals
market, extends the commercial application of our research in nanotechnology.
SHADOW
frac plugs
eliminate the milling process in plug-and-perf completions. This technology was fi eld-tested in 2013 and
brought to market a year ahead of schedule.
• The AutoTrak™ Curve rotary steerable system, brought to market in 18 months, enables operators to
improve drilling effi ciencies in unconventional wells by drilling the vertical, curve, and horizontal sections
in one run. The system enjoyed rapid customer adoption and quickly gained market share based on con-
sistently reliable performance. In 2013, the system was on the precipice of drilling more than 10 million
feet—less than two years after its launch.
Outlook
We are optimistic about the opportunities ahead for Baker Hughes. Indications are that 2014 will continue
the positive trends that began in 2013. North America spending growth is expected to accelerate, and solid
growth should continue in several international markets, particularly the Middle East, Africa, and Russia.
Sustained strong oil prices, sanctioning of major projects, and delivery of a large number of offshore rigs are
expected to drive spending increases among our customers.
The year ahead also promises new prospects for our Chemical and Industrial Services business, with opportu-
nities in deep water for Upstream Chemicals and a growing interest in industrial water treatment and petro-
chemical processing for Downstream Chemicals. We are particularly enthusiastic about the traction gained in
the midstream market by the Process and Pipeline Services product line during 2013.
We are dedicated to meeting tomorrow’s energy needs through innovations which simply do not exist today.
We are committed to escalating technology development that meets the evolving challenges of our custom-
ers. Whether we are developing unconventional reservoirs, boosting production in mature fi elds, or navigating
complex well geometries in ultra-deepwater fi elds, Baker Hughes will play a leading role in developing new
ways to address these challenges.
You can be confi dent that Baker Hughes has the right capabilities, competencies, courage, and people to
convert innovation into shareholder value.
Martin Craighead
Chairman and Chief Executive Offi cer
52013 Annual Report