Tag Archives: WFT

Oil services are ramping up

Leading up to the Petrobras offering, I flagged the regional oil drillers and service organizations. Massive capital is going to work now to develop massive oil and gas fields.

Look at what GE (quote) is doing with its $3 billion acquisition of Dresser (DRC, quote), which makes drilling and high-pressure oil production equipment. GE is also buying pipeline maker Wellstream (WSHOF, quote). Between these two deals, this to me says it all.

Or look at how Weatherford (WFT, quote) and Schlumberger (SLB, quote) are increasing their presence in Russia by making big deals with all the major producers.

Speaking of the majors, the big oil companies are moving into the emerging markets where the resources remain to be exploited and the governments are ready to lure fresh investment. That means a play for the leading field service and offshore drilling companies, which tend to come from the developed countries.

And with Petrobras (PBR, quote) leading the charge with its $224 billion five-year capex plan, legacy players and emerging oil giants alike are gearing up to spend, spend, spend — not only buying new fields outright, but on the seemingly endless equipment and expertise it takes to pump all that much-needed oil out of the ground or sea bed.

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