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Energy Key Findings: November 2012

Oilfield Services Companies Reap Benefits as Crude Gets Tougher to Find and Extract

Oilfield Services Companies Reap Benefits as Crude Gets Tougher to Find and Extract

Oilfield services (OFS) companies are often called “the unsung workhorses of the industry.” Yet, many are getting a last laugh as their revenues continue to rival or surpass those of the major oil companies who hire them. According to McKinsey, OFS companies grossed around $750 billion last year.

OFS firms find and extract oil using cutting-edge technology, while others make and sell high-tech equipment for use on drilling rigs or the seabed, or own/lease drill-rigs. The big services companies, which invest heavily in technology, have been growing by around 10% a year.

One top OFS firm, Schlumberger, earned profits of $5 billion on revenues of $40 billion in 2011. Its market capitalization increased fourfold in the past decade, to $91 billion. That is bigger than several international oil companies, including ENI ($82 billion), Statoil ($75 billion) and Conoco-Philips ($71 billion). Other large OFS companies include FMC, Cameron, Halliburton, Baker Hughes, Transocean and Weatherford International. (The Economist)


  • Price (61%), customer service (47%) and keeping the lights on (39%) are the top factors in determining whether consumers are satisfied with their electric utility. (DEFG and Navigant Consulting,
  • Global demand for oil is growing by 1-2% a year, while global production from mature oilfields is falling 2%-6% a year. (The Economist)
  • Using existing technology, U.S. energy consumption could be reduced by 23% in 2020 from current levels. (McKinsey)
  • The U.S. oil reserves grew by 23% from 2007 to 2011, mostly due to efforts of independent operating companies, not integrated oil companies or national oil companies. (Ernst & Young;

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