OFS Metrics

09/14/2021

Update: EnergyPoint’s latest four-star ratings are now posted. Total customer satisfaction ratings for over 100 major suppliers to the oil and gas industry are included. The list includes stalwarts like Schlumberger, Halliburton, Baker Hughes, Weatherford and NOV… as well as top-rated names like Helmerich & Payne, ChampionX, Newpark Resources, Core Lab and MPLX | MarkWest.

Recent adds to the list include Borr Drilling, Ulterra, Varel, Flowserve, InterMoor, Nine Energy Services, Archer, Alta Gas and others.

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EnergyPoint Research publishes customer satisfaction ratings for energy industry upstream, midstream and downstream suppliers.

08/11/2021

Hear Ye, Hear Ye 📢

Helmerich & Payne and Nabors Drilling rate first in select U.S. regions in EnergyPoint Research’s 2021 Land Drillers Customer Satisfaction Survey. 🎖

Congratulations to both! 🎊

08/10/2021

The votes are in… ✔

Helmerich & Payne and Independence Contract Drilling rate first in key categories of EnergyPoint Research’s 2021 Land Drillers Customer Satisfaction Survey. 🏆

Congratulations to both! 👏

08/06/2021

While strong customer satisfaction is always a feather in a contractor’s cap, it’s especially so in the early phases of a recovery in the oilfield. As the improving conditions unfold, top-tier contractors—like Maersk Drilling, Valaris and Borr Drilling in the offshore, and Helmerich & Payne, Precision Drilling, and Independence Contract Drilling in the onshore market—can expect to enjoy faster revenue growth, healthier margins, increased customer loyalty, and stronger market-share gains. This will prove especially true as an improving outlook pushes customers toward longer-term contracts.

This is the fourth in a series of posts summarizing results from EnergyPoint's recently released 2021 Contract Drillers Customer Satisfaction Survey.

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08/05/2021

Drilling contractors have faced in recent years some of the most formidable market conditions on record. Even so, leading drillers have now begun to right their ships financially, and up their performance operationally... just as customers need it most.

In 2021, customer satisfaction scores among major drilling contractors improved in several key areas—including job quality, service and professionalism, and digital and data capabilities. This helped boost ratings of companies like Independence Contract Drilling in the onshore space, and Borr Drilling and Shelf Drilling in the offshore.

This is the third in a series of posts summarizing results from EnergyPoint's recently released 2021 Contract Drillers Customer Satisfaction Survey.

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Press release announcing 2021 Contract Drillers Survey Results from EnergyPoint Research

08/04/2021

Customers have spoken…

Maersk Drilling and Valaris are the top-rated offshore drilling contractors as rated by customers in EnergyPoint’s 2021 survey. Maersk Drilling’s ratings were driven by top marks in performance and reliability, harsh-environment wells, Western Europe & North Sea, and two additional categories.

For its part, Valaris rated first in HSE, deepwater wells, Middle East & North Africa, Latin America & Mexico, HPHT applications, and two additional categories.

This is the second in a series of posts summarizing results from EnergyPoint's recently released 2021 Contract Drillers Customer Satisfaction Survey. Stay tuned for more.

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Press release announcing 2021 Contract Drillers Survey Results from EnergyPoint Research

08/04/2021

The world of energy is off to a busy start in the third quarter, and EnergyPoint’s Q3 2021 edition of Rope, Soap & Dope tracks some of the most interesting news items so far.

Includes insights on fossil fuel demand, oilfield supplier performance, Chile’s gamble on hydrogen, biomass’s carbon problem, Texas’s energy grid, and other issues affecting companies like BP, Eni, Newpark, Ulterra, Halliburton, Tenaris, Stora Enso, Eni, California ISO, and others.

Read it all: https://energypointresearch.com/oilfield-insights/archives/12091

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&A

EnergyPoint Research's most popular energy industry news and insights from the third quarter of 2021.

07/21/2021

WSJ writes, Japan is proposing to double the share of renewable energy in its power grid and slash fossil fuels to less than half during the next decade. It represents a huge jump in carbon-cutting goals, reflecting increased international urgency around climate change.

The draft plan calls for an ambitious reboot of Japan’s nuclear fleet—the bulk of which is still offline since 2011. It also proposes building a hydrogen supply chain and includes the fuel for the first time in its proposed energy mix.

Experts say the plan will be extremely tough to execute by its deadline of 2030. And the persistence in the proposed energy mix of a significant amount of coal highlights the challenges Japan and many other countries will have in transforming their energy systems.

The proposed GHG target—a cut of 46% by 2030 versus 2013 levels—is 77% higher than what had previously pledged, and brings the country largely in line with similar goals from the EU and U.S.

Our Take: Calls for as much as 22% of Japan’s power to come from nuclear by 2030 would require it to overcome resistance to restarting the rest of its sidelined fleet. If successful, it might be the most promising development in years in the fight against climate change.

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Japan is proposing to double the share of solar and other renewable energy in its power grid and slash the share of fossil fuels to less than half during the next decade.

07/12/2021

WSJ editorial board writes, the EC will soon to unveil its Carbon Border Adjustment Mechanism (CBAM). Brussels wants to impose tariffs to bring the cost of CO2 emissions tied to an imported good into line with what a EU producer would pay to produce the same good.

Its an admission the EU’s emissions-trading scheme (ETS) is bad for the economy. EU companies are less competitive because they must pay for emissions and foreign companies don’t. Companies send production offshore to avoid the ETS, which greens call “carbon leakage” and most people would call common sense.

The CBAM would impose an enormous burden on companies seeking to sell to the EU and will likely trigger a trade war. Foreign firms would have to undertake detailed carbon for EU regulators. If a company isn’t able to complete the complex and expensive calcs, its carbon tariff will be estimated on the basis of the emissions of the dirtiest 10% of EU producers for the same good.

Bottom Line: Climate tariffs are a tacit admission that Western elites haven’t convinced voters to pay the price of their climate obsessions. They now want to blame foreigners. In the process they’ll force consumers to pay more for imports and domestic goods, harming their own exporters as countries retaliate.

😠

Europe starts the bidding on CO2 tariffs. Will Biden follow?

07/09/2021

WSJ writes larger shale drillers, in the past the oil world’s swing producer, are largely standing pat as oil and gas prices rise. Instead they plan to focus on reducing debt. Some are socking away money to return to investors in the form of variable dividends.

The U.S. is producing roughly 2MMBPD less than it was before the pandemic. The number of active rigs drilling for oil stands at 376, down from 683 pre-Covid-19. Shale companies have dipped into their DUCs, rather than drill new wells, to help maintain output cheaply.

In the heyday of the shale boom, publicly traded oil producers typically reinvested more than 100% of the cash flow they made from operations back into drilling campaigns. Now they are using about half of the income they generate on new drilling and are only growing output slightly, if at all.

The newfound discipline has attracted some investors that haven’t traditionally invested in energy, seeking energy exposure as prices rise.

Our Take: Yes, shake E&Ps have been forced to rein in spending and live within their means after investors lost faith in them following years of poor returns. But there's a large group of private players who aren't as constrained. Might they start ramping up now that cash flow is at all-time highs?

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07/08/2021

Challenges in the oil and gas industry have been numerous over the last few years. One of the few bright spots is the high level of customer satisfaction that’s emerged in the oilfield products sector. Total satisfaction ratings for major providers in EnergyPoint’s 2021 survey is a historically healthy 7.56 on a 10-pt scale.

Customers are most satisfied with suppliers and their offerings in the dimension of engineering and design (E&D), followed by performance and reliability (P&R). Within engineering and design, top-rated sub-attributes are the degree to which products and upgrades are value-adding, and technical soundness and sophistication of products. Within performance and reliability, it’s the ability to perform to specifications and expectations rated highest.

Companies rating in the top ten in both E&D and P&R include Cactus Wellhead, ChampionX (Apergy), Gardner Denver Pumps, Nippon Steel, Oceaneering, Pason Systems, and TAM International.

This is the second in a series of posts based on findings in EnergyPoint's 2021 Oilfield Products Ratings & Analysis Report. Read more: http://ow.ly/6eJ350FrvS9

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07/08/2021

As these charts from FT show, if there's one part of the world that's dead set on making it as painful as possible on citizens for continuing to emit carbon, it's the EU. Is it sustainable?