Roulston Research June 28th Oil Services Roundtable with Former Weatherford and Nabors Executives

July 2, 2013

On June 28th, Roulston Research hosted a roundtable discussion of the Oil Services industry with Mark Stanley and Phil Hyatt. Mr. Stanley founded Clearwater International in 1989 and served as president. He grew the business to $42 million in revenue before it was acquired by Weatherford in 2002. Mr. Stanley served as Group VP of Pumping and Chemical Services and Chemicals and Drilling Fluids, completing 12 acquisitions during his time there. He currently serves as the president of Themark Corporation. Mr. Hyatt has over 30 years of experience in the oil and gas industry, having worked for Nabors, Dimensional Petroleum Services, Conoco Phillips, Pool Offshore Company, and Gulf Offshore Company of Texas. Currently, he is the Managing Partner of Petronomics Partners of Texas, a consulting firm dedicated to providing economic analysis to oilfield service providers, contracting strategies and in-depth understanding of contractor cost structures and other important metrics. Mr. Stanley and Mr. Hyatt discussed several topics and trends in the Oil Services industry including an outlook of offshore drilling, shale gas both in North America and overseas, and the market for jackup rigs.

Both speakers had differing opinions regarding the future of offshore drilling. Mr. Hyatt, citing research by Wood Mackenzie believed that 95 new ultra-deep water rigs would be built between 2016 and 2022. Mr. Stanley disagreed, stating that that is an overly optimistic prediction by as much as 50%. He did not see enough demand for them in the future. A concern for offshore drilling going forward is that many integrated companies are concerned about running out of acreage. This is due to the fact that there are many state controlled oil companies around the world, and they have control of a vast majority of the reserves in their respective countries. Something the United States does not lack, however, is shale gas reserves. Thanks to these reserves and improving technology, we have enough natural gas to last about 200 years. This abundance of reserves allows us to compete better with Russia as a supplier to Europe. China, on the other hand, has many suspected reserves of shale gas, but lacks the technology needed to fully access them. While there is much public opposition to hydraulic fracturing, both speakers agree that technology has advanced to the point where a lot of the environmental harm is contained thanks to the use of guar and other non-harmful agents. In terms of the jackup rig market, approximately 35% of rigs in use are 30 years old or more. On the gas side, equipment age does not matter as much as long as the rig gets the job done. On the oil side, however, more horizontal drilling is necessary, which older rigs are not well equipped for. There are trade offs between newer and older rigs, and as a result, firms may get a discount for operating older rigs. If you would like to hear the whole podcast, or engage in a 1 on 1 discussion with Phil or Mark, please email

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