Global Service Sector Trends

Transcription

1 Global Service Sector Trends Jerry Logan Vice President Strategy & Portfolio Energy Services Group Halliburton Presentation to the Energy Summit 2005 LSU Center for Energy Studies October 19-20, 2005

2 Today s Outline 2 Overview of Halliburton Product service lines Worldwide locations and importance of Louisiana General Oilfield Service Trends and Their Implications for the State of Louisiana What are the fastest growing segments? Where is the growth expected to take place, geographically? What types of resources will be developed? What types of wells will be drilled in the future? What are the new technologies and who will be developing them? Who (people) will be doing all of this? Conclusions

3 Halliburton Business Units 3 Halliburton Company Energy Services Group KBR Production Optimization Fluid Systems Government & Infrastructure Energy & Chemicals Drilling & Formation Evaluation Digital & Consulting Solutions

4 Halliburton s Geographic Coverage 4 ESG KBR ~ 100 Countries ~ 100,000 Employees 2004 Revenue: $20.5 Billion

5 Louisiana and the GOM Remain Key to Halliburton Major Facility Locations 5 Bossier City Shreveport Halliburton Employees ESG 2,400 KBR 1,800 Lafayette (3) Westlake Cameron (2) IntraCoastal City (2) Broussard (4) New Orleans (2) New Iberia (2) Berwick Morgan City Fourchon (5) Houma (3) Grand Isle Venice (3)

6 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 6 Unit Manufacturing Land Contract Drilling Casing & Cementation Products Offshore Services Slowest Growth Rates Oilfield Service Market CAGRs ( ) Spears & Associates Offshore O&M Services Offshore Construction Services Supply Vessels Geophysical Equipment & Services Petroleum Aviation Offshore Contract Drilling Well Servicing Wireline Logging Drilling & Completion Fluids Floating Production Services Logging-While-Drilling Subsea Equipment Completion Equipment & Services Drill Bits Artificial Lift Directional Drilling Services Oil Country Tubular Goods Pressure Pumping Services

7 Drilling and Completion Spend (US Millions) Spears & Associates Drilling and Production Outlook Sept $18,680 $8,572 $12,000 $59,887 $8,020 $18,519 $7,970 US Offshore $16, % %

8 Expect Spend to Shift Gradually to the Eastern Hemisphere Oil and Gas Production Indexed to Spears Sept 2005 Drilling and Production Outlook Western Hemis - Oil Eastern Hemis - Oil Western Hemis - Gas Eastern Hemis - Gas

9 Well Count Expected to Increase in the Eastern Hemisphere Spears Sept 2005 Drilling and Production Outlook 9 Wells Drilled (Land - Left Axis) (Offshore - Right Axis) 90,000 3,000 80,000 70,000 2,500 60,000 2,000 50,000 40,000 1,500 30,000 1,000 20,000 10, West - Land East - Land West - Off East - Off 0

10 US Drilling and Completion Spending Spears Sept 2005 Drilling and Production Outlook 10 $60.0 $50.0 D&C Spend ($ Billions) $40.0 $30.0 $20.0 $10.0 $ Oil Gas

11 R&D Investment Continues to Shift to Oilfield Services 11 1,400 1,200 R&D Investment ($, millions) 1, E&P Firms* Oilfield Service Firms** 200 Seismic Service Firms*** Research Center Closing * US E&P firms and the US R&D investments of international E&P firms; source Department of Energy, EIA, CERA analysis. ** Traditional Oil Field Service companies (Baker Hughes, Halliburton, Schlumberger, Smith, Weatherford) annual reports, CERA analysis. *** Seismic Service Companies (CGG, Input/Output, OYO Geospace, PGS, Veritas) annual reports, CERA analysis. Source: Cambridge Energy Research Associates.

12 Upstream Patent Awards Top 3 Super Majors vs. Service Companies Major Service Companies * Selected Super Majors Source: Derwent WPI, Global patent search on Upstream code H01 published patents ( )

13 Well Complexity Trending Up 13 % of wells drilled 90% 80% 70% 60% 50% 40% 30% 20% Complex Wells - GOM Complexity parameters: >15,000 ft, and/or >300 ft water depth, and/or >45 deg avg deviation None One 2 or more 3 or more 10% 0% Source: MMS

14 Technology Trends and Challenges 14 Geoscience Interpretation and Reservoir Modeling Advanced Drilling Methods Advanced Completion Techniques HT-HP Applications for Ultra-Deep Shelf Real-Time Drilling and Production Applications Ultra-Deep Water Applications Increasing distance for Remote Tie-backs High Performance Environmentally Advanced Fluids Advanced Testing Applications for Reserve Assurance Development of Unconventional Resources Mature Field Exploitation Advancements

15 Majority of SPE Member are Over 40: Many Opportunities for Younger Engineers 15 Members Under 40 Age: Source: SPE SPE membership includes petroleum engineers and other E&P industry professionals.

16 SPE Non-US Membership Continues to Grow % 80% 60% 40% 20% 0% U.S. Members Non-U.S. Members Source: SPE SPE membership includes petroleum engineers and other E&P industry professionals.

17 Halliburton Employee Profile by Region Industry Average Age Age/Service by Region Africa Asia Pacific Canada Eurasia Latin America Middle East United States Western Europe 0 Age Years of Service

18 Questions for the Eastern Gulf of Mexico 18 Will the Eastern Gulf be opened for access? Where will the operations be staged from? Source: MMS

19 Conclusions 19 Louisiana will be. An important oil and gas production area for the US but on a declining basis on land An important geographic area for Halliburton A staging ground for new technology worldwide especially for offshore operations A vital source of personnel and offshore expertise