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Global - Oil & Gas Equipment & Ser vices 0199 - 2118 - 2013

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MarketLine Industry Profile

Global Oil & Gas Equipment & Services November 2014

Reference Code: 0199-2118

Publication Date: November 2014

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EXECUTIVE SUMMARY

Market value The global oil & gas equipment & services market grew by 21.8% in 2013 to reach a value of $633.9 billion.

Market value forecast In 2018, the global oil & gas equipment & services market is forecast to have a value of $799.9 billion, an increase of

26.2% since 2013.

Category segmentation Other services is the largest segment of the global oil & gas equipment & services market, accounting for 29.4% of the

market's total value.

Geography segmentation Americas accounts for 52.9% of the global oil & gas equipment & services market value.

Market share Schlumberger Limited is the leading player in the global oil & gas equipment & services market, generating a 7.1% share

of the market's value.

Market rivalry The volatility of crude oil prices continue to have an impact on this market, with price hikes increasing demand for

specialist equipment and services and therefore rivalry.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market share..................................................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................9

Market value ..................................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Category segmentation..............................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................11

Market share................................................................................................................................................................................12

Market Outlook ................................................................................................................................................................................13

Market value forecast.................................................................................................................................................................13

Five Forces Analysis ......................................................................................................................................................................14

Summary ......................................................................................................................................................................................14

Buyer power.................................................................................................................................................................................15

Supplier power ............................................................................................................................................................................16

New entrants ...............................................................................................................................................................................17

Threat of substitutes...................................................................................................................................................................18

Degree of rivalry..........................................................................................................................................................................19

Leading Companies........................................................................................................................................................................20

Baker Hughes Incorporated ......................................................................................................................................................20

Halliburton Company..................................................................................................................................................................24

Schlumberger Limited ................................................................................................................................................................28

Weatherford International Ltd. ..................................................................................................................................................32

Appendix...........................................................................................................................................................................................36



Methodology ................................................................................................................................................................................36

Industry associations..................................................................................................................................................................37

Related MarketLine research....................................................................................................................................................37



LIST OF TABLES

Table 1: Global oil & gas equipment & services market value: $ billion, 200913.................................................................9

Table 2: Global oil & gas equipment & services market category segmentation: $ billion, 2013 ......................................10

Table 3: Global oil & gas equipment & services market geography segmentation: $ billion, 2013 ...................................11

Table 4: Global oil & gas equipment & services market share: % share, by value, 2013...................................................12

Table 5: Global oil & gas equipment & services market value forecast: $ billion, 201318 ...............................................13

Table 6: Baker Hughes Incorporated: key facts .........................................................................................................................20

Table 7: Baker Hughes Incorporated: key financials ($)...........................................................................................................21

Table 8: Baker Hughes Incorporated: key financial ratios........................................................................................................22

Table 9: Halliburton Company: key facts ....................................................................................................................................24

Table 10: Halliburton Company: key financials ($) ....................................................................................................................25

Table 11: Halliburton Company: key financial ratios .................................................................................................................26

Table 12: Schlumberger Limited: key facts .................................................................................................................................28

Table 13: Schlumberger Limited: key financials ($) ..................................................................................................................30

Table 14: Schlumberger Limited: key financial ratios ...............................................................................................................30

Table 15: Weatherford International Ltd.: key facts ...................................................................................................................32

Table 16: Weatherford International Ltd.: key financials ($) ....................................................................................................33

Table 17: Weatherford International Ltd.: key financial ratios .................................................................................................34



LIST OF FIGURES

Figure 1: Global oil & gas equipment & services market value: $ billion, 200913 ...............................................................9

Figure 2: Global oil & gas equipment & services market category segmentation: % share, by value, 2013 ...................10

Figure 3: Global oil & gas equipment & services market geography segmentation: % share, by value, 2013 ...............11

Figure 4: Global oil & gas equipment & services market share: % share, by value, 2013 .................................................12

Figure 5: Global oil & gas equipment & services market value forecast: $ billion, 201318 ..............................................13

Figure 6: Forces driving competition in the global oil & gas equipment & services market, 2013.....................................14

Figure 7: Drivers of buyer power in the global oil & gas equipment & services market, 2013 ...........................................15

Figure 8: Drivers of supplier power in the global oil & gas equipment & services market, 2013 .......................................16

Figure 9: Factors influencing the likelihood of new entrants in the global oil & gas equipment & services m arket, 201317

Figure 10: Factors influencing the threat of substitutes in the global oil & gas equipment & services market, 2013 .....18

Figure 11: Drivers of degree of rivalry in the global oil & gas equipment & services market, 2013 ..................................19

Figure 12: Baker Hughes Incorporated: revenues & profitability.............................................................................................22

Figure 13: Baker Hughes Incorporated: assets & liabilities .....................................................................................................23

Figure 14: Halliburton Company: revenues & profitability ........................................................................................................26

Figure 15: Halliburton Company: assets & liabilities .................................................................................................................27

Figure 16: Schlumberger Limited: revenues & profitability.......................................................................................................30

Figure 17: Schlumberger Limited: assets & liabilities ...............................................................................................................31

Figure 18: Weatherford International Ltd.: revenues & profitability.........................................................................................34

Figure 19: Weatherford International Ltd.: assets & liabilities .................................................................................................35



MARKET OVERVIEW

Market definition The value of the global oil and gas equipment and services market is deemed to be the revenues accrued by the

manufacturers of equipment, including drilling rigs and equipment and providers of supplies and services to companies

involved in the drilling, evaluation and completion of oil and gas wells.

Formation evaluation segment includes revenues generated through the sale of equipment or the provision of ser vices

(such as well cutting examination and mud logging) used to determine the viability of a potential oil field.

Drilling related services segment includes revenues from services such as drill optimization and drill maintenance, but

excludes contract drilling itself.

Well completions segment consists of revenues generated through products and services used in well completion

operations such as testing, water separation, metering and artificial lift solutions.

Manufacturers of oil rigs and drilling equipment segment consists of revenues generated through the sale of drilling

equipment such as drilling tools, drill bits, drilling fluids; and rig equipment such as mud pumps, handling tools, valves,

bolts and fasteners.

Other services segment includes all other oil and gas field services such as offshore construction, rig inspection and

pumping services.

Company market shares are calculated on the basis of revenues gained in this market only, and exclude revenues from

any other activities.

Any currency conversions used in this report have been calculated using constant 2013 annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern

Europe, MEA, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain,

Sweden, Switzerland, Turkey, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and

Thailand.

Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

Market analysis The global oil & gas equipment & services market continued to grow strongly by value in 2013, following volatile

performance in recent years. Revenues are predicted to grow at a moderate overall pace through the forecast period to

2018.

The global oil & gas equipment & services market had total revenues of $633.9m in 2013, representing a compound

annual growth rate (CAGR) of 3% between 2009 and 2013. In comparison, the European market increased with a CAGR

of 2.7%, and the Asia-Pacific market declined with a compound annual rate of change (CARC) of -2.3%, over the same

period, to reach respective values of $53.5m and $157.7m in 2013.



The other services segment was the market's most lucrative in 2013, with total revenues of $186.6m, equivalent to

29.4% of the market's overall value. The manufacturers of oil rigs and drilling equipment segment contributed revenues

of $181.7m in 2013, equating to 28.7% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.8% for the five -year period 2013

- 2018, which is expected to drive the market to a value of $799.9m by the end of 2018. C omparatively, the European

and Asia-Pacific markets will grow with CAGRs of 8.4% and 3.3% respectively, over the same period, to reach

respective values of $79.9m and $185.8m in 2018.



MARKET DATA

Market value The global oil & gas equipment & services market grew by 21.8% in 2013 to reach a value of $633.9 billion.

The compound annual growth rate of the market in the period 200913 was 3%.

Table 1: Global oil & gas equipment & services market value: $ billion, 200913

Year $ billion billion % Growth

2009 564.2 424.9

2010 446.2 335.9 (20.9%)

2011 421.8 317.6 (5.5%)

2012 520.5 391.9 23.4%

2013 633.9 477.3 21.8%

CAGR: 200913 3.0%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Global oil & gas equipment & services market value: $ billion, 200913




MARKET SEGMENTATION

Category segmentation Other services is the largest segment of the global oil & gas equipment & services market, accounting for 29.4% o f the

market's total value.

The Manufacturers of oil rigs and drilling equipment segment accounts for a further 28.7% of the market.

Table 2: Global oil & gas equipment & services market category segmentation: $ billion, 2013

Category 2013 %

Other Services 186.6 29.4%

Manufacturers of oil rigs and drilling equipment

181.7 28.7%

Drilling Related Services 93.3 14.7%

Formation Evaluation 82.8 13.1%

Well Completions 36.8 5.8%

Other 52.8 8.3%

Total 634 100%


Figure 2: Global oil & gas equipment & services market category segmentation: % share, by value, 2013




Geography segmentation Americas accounts for 52.9% of the global oil & gas equipment & services market value.

Asia-Pacific accounts for a further 24.9% of the global market.

Table 3: Global oil & gas equipment & services market geography segmentation: $ billion, 2013

Geography 2013 %

Americas 335.5 52.9

Asia-Pacific 157.7 24.9

Middle East & Africa 87.2 13.8

Europe 53.5 8.4

Total 633.9 100%


Figure 3: Global oil & gas equipment & services market geography segmentation: % share, by value, 2013




Market share Schlumberger Limited is the leading player in the global oil & gas equipment & services market, generating a 7.1% share

of the market's value.

Halliburton Company accounts for a further 4.6% of the market.

Table 4: Global oil & gas equipment & services market share: % share, by value, 2013

Company % Share

Schlumberger Limited 7.1%

Halliburton Company 4.6%

Baker Hughes, Inc. 3.5%

Weatherford International 2.4%

Other 82.3%

Total 100%


Figure 4: Global oil & gas equipment & services market share: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the global oil & gas equipment & services market is forecast to have a value of $799.9 billion, an increase of

26.2% since 2013.

The compound annual growth rate of the market in the period 201318 is predicted to be 4.8%.

Table 5: Global oil & gas equipment & services market value forecast: $ billion, 201318

Year $ billion billion % Growth

2013 633.9 477.3 21.8%

2014 581.1 437.6 (8.3%)

2015 629.6 474.1 8.3%

2016 713.1 536.9 13.3%

2017 737.6 555.4 3.4%

2018 799.9 602.3 8.4%

CAGR: 201318 4.8%


Figure 5: Global oil & gas equipment & services market value forecast: $ billion, 201318




FIVE FORCES ANALYSIS

The oil & gas equipment & services market will be analyzed taking manufacturers of equipment, including drilling rigs,

and providers of supplies and services to companies involved in the drilling, evaluation and completion of oil and gas

wells. as players. The key buyers will be taken as oil, gas and petroleum companies and independent operators, and raw

material providers as the key suppliers.

Summary

Figure 6: Forces driving competition in the global oil & gas equipment & services market, 2013


The volatility of crude oil prices continue to have an impact on this market, with price hikes increasing demand for

specialist equipment and services and therefore rivalry.

The oil and gas equipment and services market is rather fragmented with the top four companies accounting for 18% of

the market in terms of revenue. Significant market share is held by large international companies such as Schlumberger

or Baker Hughes. Their presence within the market boosts the competition level significantly.

Typical buyers in this market are large, which grants them greater bargaining power. Suppliers to the market are quite

varied and depend on the specific structure of the drilling rig or equipment in question. In this sense, suppliers are those

who provide the raw materials used in the construction of rigs. The level of technology required and the high costs of

production as well as government regulation (a salient issue in light of the Deepwater Horizon spill involving BP in April

2010) constitute a strong barrier to entry and thereby reduce the threat of new players establishing themselves in this

market.

Currently, the majority of the worlds energy production takes place with the use of non-renewable sources, primarily oil,

gas and coal. However, in order to fight climate change, it is widely considered necessary to shift to renewable energy

sources. Substitutes in the oil and gas equipment and services market can be considered in terms of increasing usage of

alternative energy sources.



Buyer power

Figure 7: Drivers of buyer power in the global oil & gas equipment & services market, 2013


Buyers in this market include global energy firms, national petroleum companies and independent operators. In general,

such corporations are large, and this affords them greater bargaining power within the market. A larger number of

buyers is advantageous for market players, weakening buyer power.

The volatility of crude oil prices has a significant impact on this market, with price hikes increasing demand for specialist

equipment and services, as oil companies explore deposits previously deemed too costly to exploit. The price of crude o il

dropped dramatically towards the end of 2008, reaching a low of $36 per barrel in January 2009 this impacted

negatively on the demand for specialist equipment and services. However, the volatile nature of oil prices was

demonstrated yet again, when the price of crude oil reached $110 per barrel in May 2011. The price has remained fairly

steadily, around $95 per barrel through 2012 and 2013, before falling sharply to $80 per barrel in October 2014.

Oil and gas are important commodities used by end-consumers as fuel for transportation, and as energy for heating etc.

The resulting degree of consumer reliance on these commodities means that energy firms are assured of a continuing

demand for their products, increasing their financial power. This high level of buyer profitability places the buyers, such

as petroleum company BP, in a stronger position in this market. Overall, buyer power in the global oil and gas equipment

and services market is considered to be moderate.



Supplier power

Figure 8: Drivers of supplier power in the global oil & gas equipment & services market, 2013


Suppliers to the market are quite varied and depend on the specific structure of the drilling rig or equipment in q uestion.

In this sense, suppliers are those who provide the raw materials used in the construction of rigs. These are generally

made of steel but, for specific equipment, supplies can include materials such as tungsten carbide and embedded small

industrial diamonds (used for drill bits). Inputs such as steel can be sourced from numerous suppliers so, where this is

the case, players will seek the best deal and supplier power will therefore be proportionately weakened. However, other

inputs are more specific to the industry and suppliers will have greater power, in the sense that fewer companies will deal

in these materials (take for example, suppliers of industrial diamonds).

Where offshore units are considered, food and general supplies are also necessary to facilitate staff operations on such

rigs. Overall, supplier power in the oil and gas equipment and services market is considered to be moderate.



New entrants

Figure 9: Factors influencing the likelihood of new entrants in the global oil & gas equipment & services market, 2013


The market for oil and gas equipment and services is rather fragmented, where the large international companies such

as Schlumberger or Baker Hughes, which have invested heavily in their fleets of drilling rigs and other equipment and

technology, including product innovation. To keep up with the leading players, strong research and development (R&D)

capability is required. The presence of such powerful incumbents ac ts as a significant barrier to entry and the need for

substantial initial investment to set up facilities such as drilling rigs also reduces the threat of new companies

establishing themselves in this market.

As well as regulations surrounding taxation and the issue of whether oil and gas exploration is permitted, there are also

restrictions regarding environmental impact. In the US, for example, the discharge of materials produced as a result of

drilling is government controlled and operating companies are required to remove any materials that are deemed

damaging to the environment. One such example of this policy is the control and removal of drill cuttings, which are small

pieces of rock varying in size and texture from fine silt to gravel, produced when wells are drilled. These cuttings can

accumulate beneath drilling installations so that top layers prevent oxygen and other seawater constituents from

penetrating to those below. The lack of oxygen within these accumulations means that bio -degradation is much slower

and, as a result, any trace hydrocarbons take much longer to break down. Such regulations increase the costs

attributable to market players and act as a further barrier to entry.

Very strong market growth in 2012 and 2013 is likely to attract new players to the market. However, successful

companies in this market must be able to withstand fluctuating demand for their products and services, as their oil

company customers vary their own investment in exploration and production. Overall, there is a moderate threat posed

by new entrants to the oil and gas equipment and services market.



Threat of substitutes

Figure 10: Factors influencing the threat of substitutes in the global oil & gas equipment & services market, 2013


There is no direct substitute for these products and services. However, scientists are constantly looking for more efficient

and environmentally-friendly drilling solutions. When demand for oil is high, oil companies may find it economical to

exploit oil shales, which requires strip-mining techniques rather than conventional drilling.

Currently, the majority of the worlds energy production takes place with the use of non -renewable sources (oil, gas and

coal). However, in order to fight climate change, it is widely accepted that it will be necessary to shift to renewable

energy sources, and oil companies may begin to diversify into these areas, reducing their demand for drilling services.

Governments around the world are signaling their intention to reduce dependence on non-renewable energy sources by

creating increasingly ambitious renewable energy targets. However, at present, as there are no direct substitutes for

drilling where substantial depths must be reached. The threat from substitutes in this market is considered to be weak.



Degree of rivalry

Figure 11: Drivers of degree of rivalry in the global oil & gas equipment & services market, 2013


The oil and gas equipment and services market is relatively fragmented; the four leading players collectively hold 18% of

the market share. Such players usually present similar business models although they do try to diversify their operations

somewhat. Baker Hughes, for example, has a wide product portfolio catering to the worldwide oil and natural gas

industry. The company manufactures and supplies drill bits, primarily roller cone bits, and fixed -cutter polycrystalline

diamond compact (PDC) bits. It supplies them to the oil and natural gas industry worldwide. Baker Hughes also supplies

drilling and evaluation services which include directional drilling, measurement-while-drilling (MWD), and logging-while-

drilling (LWD) services. The company provides formation evaluation and wireline completion and production services for

oil and natural gas wells.

Although the oil and gas equipment and services market offers some variation in the services and equipment on offer,

there is essentially little to distinguish between the overall services offered by players. This increases the degree of

rivalry amongst players. With substantial fixed costs, and high exit barriers created by the need to divest industry-specific

assets on leaving the market, rivalry within this market is substantial. Overall, there is a strong degree of rivalry amongst

players operating within the global market for oil and gas equipment and services.



LEADING COMPANIES

Baker Hughes Incorporated

Table 6: Baker Hughes Incorporated: key facts

Head office: 2929 Allen Parkway, Suite 2100, Houston, Texas 77019 2118, USA

Telephone: 1 713 439 8600

Website: www.bakerhughes.com

Financial year-end: December

Ticker: BHI

Stock exchange: New York

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Baker Hughes is engaged in supplying oilfield services, products, technology, and systems to the worldwide oil and

natural gas industry. The company also provides industrial products and services to the downstream chemicals, and

process and pipeline industries.

Baker Hughes operates through five business segments: North America; Middle East/Asia Pacific; Europe/Africa/Russia;

Latin America; and industrial services.

The company manages its oilfield operations through four geographic segments consisting of North America, Latin

America, Europe/Africa/Russia Caspian, and the Middle East/Asia Pacific. The main products and services provided by

oilfield operations fall into one of two categories: drilling and evaluation or completion and production.

The drilling and evaluation products and services consist of the following: drill bits; drilling services; wireline services; and

drilling and completion fluids.

Drill bits includes Tricone, PDC or 'diamond', and Kymera hybrid drill bits used for performance drilling, hole enlargement

and coring.

Drilling services includes conventional and rotary steerable systems used to drill wells directionally and horizontally;

measurement-while-drilling and logging-while-drilling systems used to perform reservoir navigation services; drilling

optimization services; tools for coil tubing drilling and wellbore re-entry systems; coring drilling systems; and surface

logging.

Wireline services includes tools for both open hole and cased hole well logging used to gather data to perfo rm

petrophysical and geophysical analysis, reservoir evaluation coring, casing perforation, fluid characterization, production

logging, well integrity testing, pipe recovery, and seismic and microseismic services.

Drilling and completion fluids include emulsion and water-based drilling fluids systems, reservoir drill-in fluids, and fluids

environmental services.

The completion and production products and services consist of the following: completion systems; wellbore intervention;

intelligent production systems; artificial lift; upstream chemicals; and pressure pumping.

Completion systems includes products and services used to control the flow of hydrocarbons within a wellbore including

sand control systems, liner hangers, wellbore isolation, expandable tubu lars, multilaterals, safety systems, packers and

flow control, and tubing conveyed perforating.

Wellbore intervention includes products and services used in existing wellbores to improve their performance including

thru-tubing fishing, thru-tubing inflatables, conventional fishing, casing exit systems, production injection packers,

remedial and stimulation tools, and wellbore cleanup.



Intelligent production systems includes products and services used to monitor and dynamically control the production

from individual wells or fields including production decisions services, chemical injection services, well monitoring

services, intelligent well systems, and artificial lift monitoring.

Artificial lift includes electric submersible pump systems; progressing cavity pump systems, gas lift systems, and surface

horizontal pumping systems used to lift large volumes of oil and water when a reservoir is no longer able to flow on its

own.

Upstream chemicals include chemicals and chemical application systems to provide flow assurance, integrity

management and production management for upstream hydrocarbon production.

Pressure pumping includes cementing, stimulation, including hydraulic fracturing, and coil tubing services used in the

completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore.

The company also provides project solutions to its customers through the integrated operations group. The integrated

operations group is focused on the execution of projects that have one or more of the following attributes: project

management; well site supervision; well construction; intervention; third party contractor management; procurement; and

rig management.

The industrial services segment consists primarily of the company's downstream chemicals and process and pipeline

services businesses. Downstream chemicals provide products and services that help to increase refinery production, as

well as improve plant safety and equipment reliability. Process and pipeline services works to improve efficiency and

reduce downtime with inspection, pre-commissioning and commissioning of new and existing pipeline systems and

process plants.

Key Metrics

The company recorded revenues of $22,364m in the fiscal year ending December 2013, an increase o f 4.7% compared

to fiscal 2012. Its net income was $1,096m in fiscal 2013, compared to a net income of $1,311m in the preceding year.

Table 7: Baker Hughes Incorporated: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 9,664.0 14,414.0 19,831.0 21,361.0 22,364.0

Net income (loss) 421.0 812.0 1,739.0 1,311.0 1,096.0

Total assets 11,439.0 22,986.0 24,847.0 26,689.0 27,934.0

Total liabilities 4,155.0 8,886.0 9,101.0 9,421.0 10,022.0

Employees 26,900 53,100 57,700 58,800 61,100

SOURCE: COMPANY FILINGS M A R K E T L I N E



Table 8: Baker Hughes Incorporated: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 4.4% 5.6% 8.8% 6.1% 4.9%

Revenue growth (18.5%) 49.2% 37.6% 7.7% 4.7%

Asset growth (3.6%) 100.9% 8.1% 7.4% 4.7%

Liabilities growth (17.8%) 113.9% 2.4% 3.5% 6.4%

Debt/asset ratio 36.3% 38.7% 36.6% 35.3% 35.9%

Return on assets 3.6% 4.7% 7.3% 5.1% 4.0%

Revenue per employee $359,257 $271,450 $343,692 $363,282 $366,023

Profit per employee $15,651 $15,292 $30,139 $22,296 $17,938


Figure 12: Baker Hughes Incorporated: revenues & profitability




Figure 13: Baker Hughes Incorporated: asse ts & liabilities




Halliburton Company

Table 9: Halliburton Company: key facts

Head office: 3000 North Sam Houston Parkway East, Houston, Texas 77032, USA

Telephone: 1 281 871 4000

Website: www.halliburton.com


Ticker: HAL



Halliburton is a global provider of products and services to the energy industry related to the exploration, development,

and production of oil and natural gas. The company serves major, national, and independent oil and natural gas

companies throughout the Americas, Europe, Africa, the Middle East, and Asia Pacific.

Halliburton operates through two business segments: completion and production; and drilling and evaluation.

The company's completion and production segment delivers cementing, stimulation, intervention, pressure control,

specialty chemicals, artificial lift, and completion services. The segment consists of production enhancement, cementing,

completion tools, Halliburton boots and coots, Multi-Chem, and Halliburton artificial lift.

Production enhancement services include stimulation services and sand control services. Stimulation services optimize

oil and natural gas reservoir production through a variety of pressure pumping services, nitrogen services, and chemical

processes, commonly known as hydraulic fracturing and acidizing. Sand control services include fluid and chemical

systems and pumping services for the prevention of formation sand production.

Cementing services involve bonding the well and well casing while isolating fluid zones and maximizing wellbore stability.

The company's cementing service line also provides casing equipment.

Completion tools provides downhole solutions and services to the company's customers to complete their wells,

including well completion products and services, intelligent well completions, liner hanger systems, sand control systems,

and service tools.

Halliburton boots and coots include well intervention services, pressure control, equipment rental tools and services, and

pipeline and process services.

Multi-Chem includes oilfield production and completion chemicals and s ervices that address production, processing, and

transportation challenges.

Halliburton artificial lift offers electrical submersible pumps, including the associated surface package for power, control,

and monitoring of the entire lift system, and provides installation, maintenance, repair, and testing services.

The company's drilling and evaluation segment provides field and reservoir modeling, drilling, evaluation, and precise

wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction

activities. The segment consists of drill bits and services, wireline and perforating, testing and subsea, baroid, sperry

drilling, Landmark software and services, and consulting and project management.

Drill bits and services provides roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and

services used in drilling oil and natural gas wells. In addition, coring equipment and services are provided to acquire

cores of the formation drilled for evaluation.



Wireline and perforating services include open-hole logging services that provide information on formation evaluation

and reservoir fluid analysis, including formation lithology, rock properties, and reservoir fluid properties. The company

offers cased-hole and slickline services, which provide perforating, pipe recovery services, through -casing formation

evaluation and reservoir monitoring, casing and cement integrity measurements, and well intervention services. Borehole

seismic services include downhole seismic operations check-shots and vertical seismic profiles, and provide the link

between surface seismic and the wellbore. Moreover, formation and reservoir solutions transform formation evaluation

data into reservoir insight through geoscience solutions.

Testing and subsea services provide acquisition and analysis of dynamic reservoir information and reservoir optimization

solutions to the oil and natural gas industry through a broad portfolio of test tools, data acquisition services, fl uid

sampling, surface well testing, and subsea safety systems.

Baroid provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing

equipment, and waste management services for oil and natural gas drilling, completion, and workover operations.

Sperry drilling provides drilling systems and services. These services include directional and horizontal drilling,

measurement-while-drilling, logging-while-drilling, surface data logging, multilateral systems, underbalanced applications,

and rig site information systems. Halliburton's drilling systems offer directional control for precise wellbore placement

while providing important measurements about the characteristics of the drill string and geological formations wh ile

drilling wells.

Landmark software and services is a supplier of integrated exploration, drilling and production software, and related

professional and data management services for the upstream oil and natural gas industry.

Consulting and project management provides oilfield project management and integrated solutions to independent,

integrated, and national oil companies.

Key Metrics

The company recorded revenues of $29,402m in the fiscal year ending December 2013, an increase of 3.2% compared


Table 10: Halliburton Company: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 14,675.0 17,973.0 24,829.0 28,503.0 29,402.0

Net income (loss) 1,145.0 1,835.0 2,839.0 2,635.0 2,125.0

Total assets 16,538.0 18,297.0 23,677.0 27,410.0 29,223.0


Employees 57,000 60,000 68,000 73,000 80,000




Table 11: Halliburton Company: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 7.8% 10.2% 11.4% 9.2% 7.2%

Revenue growth (19.7%) 22.5% 38.1% 14.8% 3.2%

Asset growth 15.0% 10.6% 29.4% 15.8% 6.6%

Liabilities growth 16.8% 1.7% 32.3% 11.1% 34.3%

Debt/asset ratio 47.0% 43.2% 44.2% 42.4% 53.4%

Return on assets 7.4% 10.5% 13.5% 10.3% 7.5%




Figure 14: Halliburton Company: revenues & profitability




Figure 15: Halliburton Company: asse ts & liabilities




Schlumberger Limited

Table 12: Schlumberger Limited: key facts

Head office: 5599 San Felipe, 17th Floor, Houston, Texas 77056, USA

Telephone: 1 713 375 3535

Website: www.slb.com


Ticker: SLB



Schlumberger supplies a wide range of products and services from seismic acquisition and processing, drill bits and

drilling fluids, directional drilling and drilling services, and formation evaluation and well testing to well cementing and

stimulation, artificial lift and well completions, and consulting, software, and information management. The company

operates in the Americas, Europe, Africa, the Middle East, and Asia.

Schlumberger operates through three business segments: drilling group; production group; and reservoir

characterization group.

The drilling group segment consists of the principal technologies invo lved in the drilling and positioning of oil and gas

wells and comprises bits and advanced technologies, M-I SWACO, geoservices, drilling and measurements, drilling tools

and remedial, and integrated project management well construction projects.

Bits and advanced technologies designs, manufactures, and markets roller cone and fixed cutter drill bits for all

environments. The drill bits include designs for premium market segments where faster penetration rates and increased

footage provide economic benefits in lowering overall well costs. Bits and advanced technologies use proprietary

modeling and simulation software for the design of application-specific bits and cutting structures.

M-I SWACO is a supplier of drilling fluid systems engineered to improve dril ling performance by anticipating fluids -related

problems, fluid systems, and specialty equipment designed to optimize wellbore productivity and production technology

solutions formulated to maximize production rates. M-I SWACO also provides engineered managed pressure drilling and

underbalanced drilling solutions, as well as environmental services and products to safely manage waste volumes

generated in both drilling and production operations.

Geoservices supplies mud logging services for geological and dri lling surveillance. Drilling and measurements provides

directional drilling, measurement-while-drilling and logging-while-drilling services for all well profiles as well as

engineering support. Drilling tools and remedial provides a range of bottom hole assembly drilling tools, borehole

enlargement technologies, and impact tools, as well as a collection of tubulars and tubular services for oil and gas drilling

operations.

The production group segment consists of the principal technologies involved in the li fetime production of oil and gas

reservoirs and includes well services, completions, artificial lift, well intervention, water services, carbon services, and

Schlumberger Production Management (SPM) field production projects.

Well services provide services used during oil and gas well drilling and completion as well as those used to maintain

optimal production throughout the life of a well. The services include pressure pumping, well cementing, and stimulation

operations, as well as intervention activities.

Completions supplies well completion services and equipment that include packers, safety valves, sand control

technology as well as a range of intelligent well completions technology and equipment.



Artificial lift provides production equipment and optimization services using electrical submersible pumps and gas lift

equipment, as well as surface horizontal pumping systems. Well intervention develops coiled tubing equipment and

services and provides slick line services for downhole mechanical well intervention, reservoir monitoring, and downhole

data acquisition.

Water services specialize in the development, management, and environmental protection of water resources.

Carbon services provide geological storage solutions including storage site characterization for carbon dioxide.

Schlumberger Production Management (SPM) field production projects are engaged in developing and co -managing

customer assets under long-term commercial agreements. Schlumberger production management field production

projects are located in Ecuador, Colombia, Mexico, the US, Romania, Malaysia, and China.

The reservoir characterization group segment consists of the principal technologies involved in finding and defining

hydrocarbon resources. These include WesternGeco, wireline, testing services, Schlumberger Information Solutions

(SIS), and PetroTechnical services.

WesternGeco is a geophysical services supplier, providing worldwide reservoir imaging, monitoring, and development

services. WesternGeco provides accurate measurements and images of subsurface geology and rock properties for both

customer proprietary and multiclient surveys.

Wireline provides the information necessary to evaluate subsurface formation rocks and fluids to plan and monitor well

construction, and to monitor and evaluate well production. Wireline offers both open-hole and cased-hole services

including wireline perforating.

Testing services provides exploration and production pressure and flow-rate measurement services both at the surface

and downhole. The technology also provides tubing-conveyed perforating services.

Schlumberger Information Solutions (SIS) provide software, consulting, information management, and information

technology (IT) infrastructure services that support core oil and gas industry operational processes.

PetroTechnical services supplies interpretation and integration of all exploration and production data types, as well as

expert consulting services for reservoir characterization, field development planning production enhancement, and multi -

disciplinary reservoir and production solutions. PetroTechnical services offers multi -client data library and petrotechnical

training solutions.

Schlumberger has a 40% equity ownership interest in OneSubsea, a joint venture with Cameron International

Corporation (Cameron). The joint venture manufactures and develops products, systems, and services for the subsea oil

and gas market.

Schlumberger also offers services to its customers through business models known as Integrated Project Management

(IPM), for well construction projects, and Schlumberger Production Management (SPM), for field production projects.

These models combine the required services and products of the technologies with drilling rig management, specialized

engineering, and project management expertise to provide a complete solution to well construction and production

improvement.

Key Metrics

The company recorded revenues of $45,266m in the fiscal year ending December 2013, an increase of 8.5% compared




Table 13: Schlumberger Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 22,702.0 27,447.0 36,959.0 41,731.0 45,266.0

Net income (loss) 3,134.0 4,267.0 4,997.0 5,490.0 6,732.0

Total assets 33,465.0 51,767.0 55,201.0 61,547.0 67,100.0


Employees 77,000 108,000 113,000 118,000 123,000


Table 14: Schlumberger Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 13.8% 15.5% 13.5% 13.2% 14.9%

Revenue growth (16.4%) 20.9% 34.7% 12.9% 8.5%

Asset growth 4.3% 54.7% 6.6% 11.5% 9.0%

Liabilities growth (6.1%) 42.8% 17.2% 12.1% 2.9%

Debt/asset ratio 42.5% 39.3% 43.1% 43.4% 40.9%

Return on assets 9.6% 10.0% 9.3% 9.4% 10.5%




Figure 16: Schlumberger Limited: revenues & profitability




Figure 17: Schlumberger Limited: assets & liabilities




Weatherford International Ltd.

Table 15: Weatherford International Ltd.: key facts

Head office: 4-6 Rue Jean-Francois Bartholoni, 1204 Geneva, CHE

Telephone: 41 22 816 1500

Website: www.weatherford.com


Ticker: WFT

Stock exchange: New York, SIX, Euronext


Weatherford is an energy service and manufacturing company that provides a variety of services and e quipment to the

exploration, production, and transmission sectors of the oil and natural gas industry. The company operates in more than

100 countries located in nearly all of the oil and natural gas producing regions in the world.

Weatherford operates through four geographical segments: North America; Middle East/North Africa/Asia; Europe/West

Africa/the Former Soviet Union (FSU); and Latin America.

The company's product offerings are classified into ten service lines: artificial lift systems; drilling ser vices; well

construction; drilling tools; completion systems; wireline and evaluation services; re -entry and fishing; stimulation and

chemicals; integrated drilling; and pipeline and specialty services.

The company installs artificial lift systems in oil wells and natural gas wells with insufficient reservoir pressure to raise the

produced hydrocarbon to the surface. These systems supplement the natural reservoir pressures to produce oil or

natural gas from the well. The artificial lift systems provided by the company include progressing cavity pumps,

reciprocating rod lift systems, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead

systems, and production optimization.

The drilling services offered comprise directional drilling, controlled pressure drilling (CPD) and well testing, drilling-with-

casing (DwC), and drilling-with-liner (DwL) systems.

The well construction service line offers tubular running services, cementation tools, liner systems, solid tubular

expandable technologies, and aluminum alloy tubular products, which are required to construct a well.

The company designs and manufactures patented tools, including drilling jars, rotating control devices, and other

pressure-control equipment used in drilling oil and natural gas wells. It also offers a broad selection of in-house or third-

party manufactured equipment for the drilling, completion, and workover of oil and natural gas wells. The company offers

these drilling tools to its clients, who are primarily operators and drilling contractors, on a rental basis.

These drilling tools include drillpipe and related drillstem tools, drill collars, heavyweight pipe, and drilling jars; downh ole

tools; pressure-control equipment such as blowout preventers, high-pressure valves, accumulators, adapters, and

choke-and-kill manifolds; and tubular handling equipment such as elevators, spiders, slips, tongs, and kelly spinners.

The completion systems service line offers a comprehensive portfolio of completion tools and sand screens (both

conventional and expandable) and reservoir optimization.



Weatherford's wireline and evaluation services, in conjunction with surface logging systems and LWD, form a data

acquisition and interpretation capability that enables clients to use an integrated approach to formation evaluation and

reservoir characterization. Wireline services measure the physical properties of underground formations to help

determine the location and potential deliverability of oil and gas from a reservoir. Wireline services are provided from

surface logging units, which lower tools and sensors into the wellbore mainly on a single or multiple conductor wireline.

This service line provides open hole wireline services, geoscience services, cased hole wireline services, slickline

services, and integrated evaluation services.

The re-entry and fishing service line offers services to repair wells with mechanical problems or that need work to

prolong production of oil and natural gas reserves. The company's re-entry services include casing exit services and

advanced multilateral systems. The company provides conventional fishing services, such as removing wellbore

obstructions, including stuck or dropped equipment, tools, drillstring components, and other debris that have been lost

downhole unintentionally during the drilling, completion, or workover of new and old wells. Specialty fishing tools required

in these activities include fishing jars, milling tools, casing cutters, overshots, and spears. Fishing services also includes

the provision of well patches and extensive plug-and-abandonment products. This service line also provides a range of

thru-tubing services and products, including drilling motors, casing exits, fishing and milling, zonal isolation packers, and

other well remediation services.

The company's stimulation and chemicals service line offers chemical technology and services for production

enhancement. These products and services include fracturing technologies, coiled tubing technologies, cement services,

chemical systems, and drilling fluids.

The integrated drilling service line offers project management services to clients by providing products and services

needed to drill and complete a well, including the rig. All of the company's lands drilling rigs are loca ted outside of North

America.

The company provides a variety of pipeline and specialty services used throughout the life cycle of pipelines and process

facilities, onshore and offshore. These services meet all the requirements of the pipeline, process, ind ustrial, and energy

markets worldwide. In addition, it offers services carried out on permanently installed client equipment that involves

inspecting, cleaning, drying, testing, improving production, running, or establishing integrity from the wellhead out .

Key Metrics

The company recorded revenues of $15,263m in the fiscal year ending December 2013, an increase of .3% compared to

fiscal 2012. Its net loss was $345m in fiscal 2013, compared to a net loss of $778m in the preceding year.

Table 16: Weatherford International Ltd.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 8,833.0 10,220.8 12,988.0 15,215.0 15,263.0

Net income (loss) 170.1 (107.9) 189.0 (778.0) (345.0)

Total assets 5,981.9 6,492.1 21,051.0 22,795.0 21,977.0


Employees 52,000 55,000 61,000 70,000 67,000




Table 17: Weatherford International Ltd.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 1.9% (1.1%) 1.5% (5.1%) (2.3%)

Revenue growth (8.0%) 15.7% 27.1% 17.1% 0.3%

Asset growth 7.4% 8.5% 224.3% 8.3% (3.6%)

Liabilities growth 14.5% 4.2% 20.3% 19.4% (1.5%)

Debt/asset ratio 156.1% 149.9% 55.6% 61.3% 62.7%

Return on assets 2.9% (1.7%) 1.4% (3.5%) (1.5%)


Profit per employee $3,272 ($1,962) $3,098 ($11,114) ($5,149)


Figure 18: Weatherford International Ltd.: revenues & profitability




Figure 19: Weatherford International Ltd.: assets & liabilities




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross -

checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in -house databases

provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Petroleum Equipment Suppliers Association

9225 Katy Freeway, Suite 310, Houston, TX 77024, US

Tel.: 1 713 932 0168

Fax: 1 713 932 0497

www.pesa.org

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