Why U.S. Gulf of Mexico oilfield service activity appears bullish
Gulf of Mexico market
Oilfield service companies had positive comments about the Gulf of Mexico market. Broadly speaking, companies expect higher revenues and profits from the region as activity there continues to increase.
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Quotes from 2Q13 conference calls
“For the remainder of the year, we expect revenue and profit will average higher than the first half, as deepwater rigs arrive and more rigs move to development and completions. We’re optimistic about the Gulf of Mexico deepwater market, and are excited about our competitive position in the Lower Tertiary, the market that we expect to nearly double in 2014.”
“In the U.S. Gulf of Mexico, the deepwater rig count is now 17% above pre-Macondo levels, and on a year-over-year basis, activity has increased by 30%. The call for reliable and efficient service delivery, in addition to risk mitigation technologies continues in this growing market and is yielding very strong results for a number of our high margin and higher market share product lines. In addition to the dual coiled fleet operating in the Gulf of Mexico, WesternGeco also started isometrics operations in Eastern Canada during the quarter.”
“Then again, continued strong activity in terms of offshore Gulf of Mexico, both shales and deepwater.”
Baker Hughes (BHI)
“Our Gulf of Mexico business recorded its historical best revenue with strong incremental margins.”
“In the Gulf of Mexico, we experienced a strong sequential rebound in revenues and profits due to higher activity, the successful introduction of new technologies and a favorable mix of deepwater development work resulting in higher utilization of our stimulation vessels.”