Future Energy Needs to Change Role of Service Companies

Industry challenges bring opportunities worldwide.

Speaking at an OTC panel focusing on the challenges to the global energy outlook, Martin Craighead, Group President of Baker Hughes said service companies will be taking on a larger role in the years ahead. "We're morphing into entities very different than what we've been in the past. We're moving into more reservoir management."

With the industry facing challenges in regards to technology development, personnel recruitment and retention, and infrastructure, Craighead said that "a lot has to happen economically, politically and technology-wise. We'll be seeing record levels of investment, spending and risk since new discoveries will be in very hostile environments. Unique technical challenges will require tremendous investment by service companies."

As drilling occurs beyond 30,000 ft., Craighead said new materials and designs will be needed. "Baker Hughes'  new Center for Technological Innovation in Sugar Land, Texas is testing equipment" before it's deployed in wells. Results are seen such as the record-setting Chayvo extended reach drilling well in the Sakhalin Islands.

Another challenge for service companies is recruiting qualified people, and Baker Hughes now has partnered with such international institutions as the Chinese Petroleum University, Moscow State University, the India School of Mines and King Fahd University in its search for new oilfield personnel. "We need a diverse qualified workforce and are achieving that by our global recruiting methods as well as accelerated training and defining career opportunities for our employees. We want these people to commit to our industry for the long term."

Finally, service companies are expanding their international infrastructure. "Service companies are adding global infrastructure at an amazing rate," Craighead said. "The largest expansion in Baker Hughes history occurred in 2007 and an aggressive year is planned for 2008."

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