BHGE believes 2019 rig, well counts will grow

By Luke Geiver | October 30, 2018

Baker Hughes, a GE Company now in its second year under the GE name, believes the 2019 oil and gas market will continue on its growth path, including onshore and offshore markets. Lorenzo Simnoelli, president, CEO and chairman of BHGE, told investors during a Q3 earnings call that the company is encouraged by the improved outlook for the macro environment. Next year, rig count and well count will each grow, he said, adding that the offshore market is the strongest it has been since the 2014 downturn.

Since becoming a fullstream company capable of providing products or services across the entire oil and gas value chain, BHGE has mostly found success in the North American onshore market through its drilling-related products. The company has little exposure to the fracking market in the U.S. Roughly two-thirds of all BHGE business is conducted throughout international markets. Several of the key highlights from the Q3 call were related to contracts won by BHGE in the Middle East or other non-U.S. markets in both onshore and offshore plays.

During the third quarter in the U.S., BHGE believes it set a drilling world record in the Marcellus shale play. According to the company, it drilled more than 9,000 feet in a 24-hour period while using a remote monitoring capability to ensure the drill bit stayed in the desired path the entire time.

In the Permian, BHGE highlighted its work helping to improve drilling performance through the use of its trademarked AutoTrak Curve rotary steerable system combined with an extended life drill bit to help a crew drill a well 50 percent faster than originally planned.

Of the four main segments BHGE serves in the industry—oilfield services, oilfield equipment, turbomachinery and process solutions, and digital solutions—oilfield services earned the most revenue followed by turbomachinery, digital solutions and equipment.