baker hughes Annual Report 2008

2,451 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,451
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
48
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

baker hughes Annual Report 2008

  1. 1. 2008 Annual Report To Stockholders Advancing Reservoir Performance. All the easy oil has been found. Our customers need the right technology, properly applied, to produce hydrocarbons from difficult reservoirs, including unconven- tional gas plays, sub-salt formations, and deep, high pressure/ high temperature wells. Baker Hughes has that technology. Baker Hughes has long been a leading provider of high-performance technology that creates value from the reservoir. Virtually every product and service we provide is designed to lower costs, reduce risk or improve productivity during activities directly related to hydrocarbonBaker Hughes Incorporated extraction, advancing reservoir performance.2929 Allen Parkway, Suite 2100 Our Drilling and Evaluation segment provides advanced evaluation technologies and geosci-Houston, Texas 77019-2118 ence services to identify and quantify hydrocarbons so customers can make better decisionsP.O. Box 4740 about field development and create more value. Our full range of drilling technologies helpsHouston, TX 77210-4740 our customers drill their wells more efficiently and more precisely to the most productive zones in the reservoir.(713) 439-8600www.bakerhughes.com Our Completion and Production segment is focused on advancing reservoir performance over the 10- to 20-year life of the field. Our completion systems anticipate reservoir prob- Advancing lems and enable operators to optimize production from all types of wells, even in hostile environments. Our artificial lift systems and chemical treatment services provide unique solu- tions that enhance long-term productivity. Reservoir Even our downstream services to pipeline and refining customers are designed to create value from hydrocarbons extracted from the reservoir by moving crude oil and products more efficiently and by improving the performance of plant processes. While Baker Hughes possesses a full range of technologies directed at the reservoir, we are Performance improving our ability to understand hydrocarbon reservoirs. In 2008, Baker Hughes formed the Reservoir Technology and Consulting Group to build capabilities in reservoir engineering, geomechanics and consulting that will enhance our ability to advance reservoir performance. Additional information about the company is available on our website at http://investor.bakerhughes.com/annuals.cfm
  2. 2. 2008 Annual Report To Stockholders Advancing Reservoir Performance. All the easy oil has been found. Our customers need the right technology, properly applied, to produce hydrocarbons from difficult reservoirs, including unconven- tional gas plays, sub-salt formations, and deep, high pressure/ high temperature wells. Baker Hughes has that technology. Baker Hughes has long been a leading provider of high-performance technology that creates value from the reservoir. Virtually every product and service we provide is designed to lower costs, reduce risk or improve productivity during activities directly related to hydrocarbonBaker Hughes Incorporated extraction, advancing reservoir performance.2929 Allen Parkway, Suite 2100 Our Drilling and Evaluation segment provides advanced evaluation technologies and geosci-Houston, Texas 77019-2118 ence services to identify and quantify hydrocarbons so customers can make better decisionsP.O. Box 4740 about field development and create more value. Our full range of drilling technologies helpsHouston, TX 77210-4740 our customers drill their wells more efficiently and more precisely to the most productive zones in the reservoir.(713) 439-8600www.bakerhughes.com Our Completion and Production segment is focused on advancing reservoir performance over the 10- to 20-year life of the field. Our completion systems anticipate reservoir prob- Advancing lems and enable operators to optimize production from all types of wells, even in hostile environments. Our artificial lift systems and chemical treatment services provide unique solu- tions that enhance long-term productivity. Reservoir Even our downstream services to pipeline and refining customers are designed to create value from hydrocarbons extracted from the reservoir by moving crude oil and products more efficiently and by improving the performance of plant processes. While Baker Hughes possesses a full range of technologies directed at the reservoir, we are Performance improving our ability to understand hydrocarbon reservoirs. In 2008, Baker Hughes formed the Reservoir Technology and Consulting Group to build capabilities in reservoir engineering, geomechanics and consulting that will enhance our ability to advance reservoir performance. Additional information about the company is available on our website at http://investor.bakerhughes.com/annuals.cfm
  3. 3. Review Corporate Officers Board of Directors During a year with record financial results, Baker Hughes contin- Keys to Success Our Core Values Chad C. Deaton ued to invest in people, technology and infrastructure to help oil • People contributing to their full potential. Integrity – We believe integrity is the foundation of our individual and corporate actions. Chairman, President and Chief Executive Officer and gas companies advance reservoir performance. We delivered • Delivering unmatched value to our customers. We are accountable for our actions, successes and failures. advanced technology and services to support unconventional gas Martin S. Craighead • Being cost-efficient in everything we do. Teamwork – We believe teamwork leverages our individual strengths. We willingly share our resources as we and deepwater projects in North America, geared up for growing Vice President and Group President, work toward common goals. activity in Latin America, and expanded our capabilities to meet • Employing our resources effectively. Drilling and Evaluation Performance – We believe performance excellence will differentiate us from our competitors. We work hard, client needs in the Eastern Hemisphere. Below are highlights from celebrate our successes and learn from our failures. Paul S. Butero Baker Hughes operations around the world. Learning – We believe a learning environment is the way to achieve the full potential of each Vice President and President, INTEQ individual and the company. Larry D. Brady Clarence P. Cazalot, Jr. Chad C. Deaton Edward P. Djerejian Stephen K. Ellison Former Chairman and President and Chief Chairman, President and Director, James A. Baker III Vice President and President, Baker Atlas Chief Executive Officer, Executive Officer, Chief Executive Officer, Institute for Public Policy, Intermec, Inc. Marathon Oil Corporation Baker Hughes Incorporated Rice University Gary G. Rich Vice President and President, Hughes Christensen Richard L. Williams Vice President and President,Canada Europe Baker Hughes Drilling FluidsIn Canada, total rig count was up 11% from 2007, In Europe, Baker Hughes reinforced its leading posi-as oil-directed drilling increased 33%. Our horizontal tion in Norway, obtaining an important contract for Clifton Triplettwell technology helped operators exploit the Willi- drilling, evaluation, fluids and completion technology. Vice President, Chief Information Officerston basin oil plays in Saskatchewan. We introduced We continued to set records, drilling complex, multi- Anthony G. Fernandes Claire W. Gargalli Pierre H. Jungels, CBE James A. Lashour casing drilling technology in the arctic Mckenzie lateral wells for StatoilHydro. We also helped U.K. David H. Barr Former Chairman, President Former Vice Chairman, Former President of the Chairman, Manchesterdelta and in the Canadian Rockies. We also provided operators optimize production from mature fields Vice President and Group President, and Chief Executive Officer, Diversified Search and  Institute of Petroleum Principal LLCdrill bits, chemical services, completion tools and using reentry systems, directional drilling, specialty Completion and Production Phillip Services Corporation Diversified Healthhigh temperature ESP systems for oil sand and Steam chemical services and artificial lift technology. Search Companies Christopher P. BeaverAssisted Gravity Drainage projects. Russia Vice President and President,U.S. Land In the first half of the year, Baker Hughes set Baker Oil ToolsIn the U.S. land market, Baker Hughes was well posi- extended reach drilling records from Sakhalin Island, Nelson Neytioned to support operators in unconventional gas and expanded its fluids, specialty chemicals and elec- Vice President and President, Centriliftbasins with horizontal drilling, evaluation and com- tric submersible pump businesses in Western Siberia.pletion technology. Our artificial lift, specialty chemi- Wireline logging and re-entry drilling activity also John A. O’Donnellcal and permanent monitoring product lines helped increased before the market weakened. Despite the Vice President and President,optimize production from mature fields. We inaugu- impact of the economic downturn, the company Baker Petroliterated our new Center for Technology Innovation in continues to invest in growth in Russia, adding facili- James F. McCall* J. Larry Nichols H. John Riley, Jr. Charles L. Watson David E. EmersonHouston, and opened a number of new operations ties and developing our employee base. Lt. General, U.S. Army Chairman and Chief Former Chairman, Senior Advisor, Eagle Energy Vice President, Corporate Developmentfacilities across the country. (Retired) and Former Executive Officer, Cooper Industries, Ltd. Partners and Electricite de Middle East Peter A. Ragauss Executive Director of the Devon Energy Corporation France and Chairman,U.S. Offshore Baker Hughes opened a major new regional head- Senior Vice President and American Society of Military Comptrollers Wincrest Ventures L.P.Offshore U.S., deepwater operators benefited from quarters and education center in Dubai. Horizontal Chief Financial OfficerBaker Hughes technology and experience. Our drill- drilling and completions activity remained strong ining fluids experts demonstrated their leadership in Saudi Arabia with the introduction of new PDC bits Alan J. Keifer Stockholder Information Form 10-K Corporate Officedeep water with new synthetic fluids and advanced and LWD technology. Baker Hughes also gained Vice President and Controller Transfer Agent and Registrar Additional copies of the Location andhydraulics engineering. Our directional drilling and directional drilling and completions business in the John H. Lohman, Jr. BNY Mellon Shareowner company’s Annual Report to Mailing AddressLWD experts continued their record of reliability in U.A.E., built its fluids and artificial lift businesses in Services LLC the Securities and Exchange 2929 Allen Parkway, Suite 2100 Vice President, Taxdrilling through and beneath salt formations. Our Kuwait, delivered advanced completions in Qatar, 480 Washington Boulevard Commission (Form 10-K) are Houston, Texas 77019-2118completions, intelligent well technology, and flow and won a long-term artificial lift contract in Oman. Jan Kees van Gaalen Jersey City, NJ 07310 available by writing to Baker Telephone: (713) 439-8600assurance services helped optimize deepwater pro- Vice President and Treasurer (888) 216-8057 Hughes Investor Relations. P.O. Box 4740duction. And we installed ESP systems in innovative Asia Pacific Houston, Texas 77210-4740booster systems for subsea wells. In the Asia Pacific area, Baker Hughes completion Alan R. Crain Stock Exchange Listings Annual Meeting systems enhanced results from horizontal and HPHT Senior Vice President and General Counsel Ticker Symbol “BHI” The company’s Annual Meeting WebsiteLatin America wells in India. Our wireline and artificial lift busi- Sandra E. Alford New York Stock Exchange, Inc. of Stockholders will be held www.bakerhughes.comIn Latin America, Baker Hughes opened a new facility nesses showed strong gains in Indonesia. We pro- SWX Swiss Exchange at 9:00 a.m. Central Time on Baker Hughes Corporate Secretaryin Macaé, Brazil and expanded operations there to vided innovative completions and gravel packing April 23, 2009 at the Information Systemssupport deepwater and pre-salt directional drilling services in Thailand and advanced logging services Jay G. Martin Investor Relations Office Plaza Banquet Room (888) 408-4244and LWD services, while adding capabilities to pro- offshore Vietnam. In Malaysia, we drilled complex Vice President, Chief Compliance Officer Gary R. Flaharty 2777 Allen Parkwayvide drilling fluids throughout the country. Our artifi- horizontal wells and helped restore production from and Senior Deputy General Counsel Director, Investor Relations Houston, Texas 77019-2118cial lift systems helped clients throughout Latin under-performing wells. In China, our technologies Baker Hughes IncorporatedAmerica maximize oil recovery, and we introduced and services contributed to successful projects in Didier Charreton P.O. Box 4740new pumping systems for water injection. Baker Bohai Bay and the South China Sea. Vice President, Human Resources Houston, Texas 77210-4740Hughes also managed two integrated operations ir@bakerhughes.com Africa Design: SAVAGE, Branding + Corporate Design, Houston, Texasprojects in Colombia during the year and prepared Derek Mathiesonfor a major integrated project offshore Mexico to Strong activity in northern Africa included a multi-rig Vice President and Chief Technology and Marketing Officer As a Baker Hughes stockholder, you are invited to take advantage of our convenient stockholder services or requestcommence in 2009. integrated operations project and steady ongoing more information about Baker Hughes. business in Algeria, as well as increased participation in the emerging Libyan market. Baker Hughes Russell J. Cancilla BNY Mellon Shareowner Services, our transfer agent, maintains the records for our registered stockholders and can focused on opportunities in the deepwater fields Vice President, Health, Safety and help you with a variety of stockholder related services at no charge including: off West Africa. In Angola, we delivered high-end Environment and Security drilling and evaluation systems for complex wells, • Change of name or address • Additional administrative services • Dividend reinvestment enrollment and in Nigeria, we prepared a new facility to serve • Duplicate mailings • Consolidation of accounts • Transfer of stock to another person offshore customers. • Lost stock certificates Access your investor statements online 24 hours a day, 7 days a week with MLinkSM. For more information, go to www.melloninvestor.com/ISD. *Will retire at the Annual Meeting of Stockholders to be held April 23, 2009.
  4. 4. Review Corporate Officers Board of Directors During a year with record financial results, Baker Hughes contin- Keys to Success Our Core Values Chad C. Deaton ued to invest in people, technology and infrastructure to help oil • People contributing to their full potential. Integrity – We believe integrity is the foundation of our individual and corporate actions. Chairman, President and Chief Executive Officer and gas companies advance reservoir performance. We delivered • Delivering unmatched value to our customers. We are accountable for our actions, successes and failures. advanced technology and services to support unconventional gas Martin S. Craighead • Being cost-efficient in everything we do. Teamwork – We believe teamwork leverages our individual strengths. We willingly share our resources as we and deepwater projects in North America, geared up for growing Vice President and Group President, work toward common goals. activity in Latin America, and expanded our capabilities to meet • Employing our resources effectively. Drilling and Evaluation Performance – We believe performance excellence will differentiate us from our competitors. We work hard, client needs in the Eastern Hemisphere. Below are highlights from celebrate our successes and learn from our failures. Paul S. Butero Baker Hughes operations around the world. Learning – We believe a learning environment is the way to achieve the full potential of each Vice President and President, INTEQ individual and the company. Larry D. Brady Clarence P. Cazalot, Jr. Chad C. Deaton Edward P. Djerejian Stephen K. Ellison Former Chairman and President and Chief Chairman, President and Director, James A. Baker III Vice President and President, Baker Atlas Chief Executive Officer, Executive Officer, Chief Executive Officer, Institute for Public Policy, Intermec, Inc. Marathon Oil Corporation Baker Hughes Incorporated Rice University Gary G. Rich Vice President and President, Hughes Christensen Richard L. Williams Vice President and President,Canada Europe Baker Hughes Drilling FluidsIn Canada, total rig count was up 11% from 2007, In Europe, Baker Hughes reinforced its leading posi-as oil-directed drilling increased 33%. Our horizontal tion in Norway, obtaining an important contract for Clifton Triplettwell technology helped operators exploit the Willi- drilling, evaluation, fluids and completion technology. Vice President, Chief Information Officerston basin oil plays in Saskatchewan. We introduced We continued to set records, drilling complex, multi- Anthony G. Fernandes Claire W. Gargalli Pierre H. Jungels, CBE James A. Lashour casing drilling technology in the arctic Mckenzie lateral wells for StatoilHydro. We also helped U.K. David H. Barr Former Chairman, President Former Vice Chairman, Former President of the Chairman, Manchesterdelta and in the Canadian Rockies. We also provided operators optimize production from mature fields Vice President and Group President, and Chief Executive Officer, Diversified Search and  Institute of Petroleum Principal LLCdrill bits, chemical services, completion tools and using reentry systems, directional drilling, specialty Completion and Production Phillip Services Corporation Diversified Healthhigh temperature ESP systems for oil sand and Steam chemical services and artificial lift technology. Search Companies Christopher P. BeaverAssisted Gravity Drainage projects. Russia Vice President and President,U.S. Land In the first half of the year, Baker Hughes set Baker Oil ToolsIn the U.S. land market, Baker Hughes was well posi- extended reach drilling records from Sakhalin Island, Nelson Neytioned to support operators in unconventional gas and expanded its fluids, specialty chemicals and elec- Vice President and President, Centriliftbasins with horizontal drilling, evaluation and com- tric submersible pump businesses in Western Siberia.pletion technology. Our artificial lift, specialty chemi- Wireline logging and re-entry drilling activity also John A. O’Donnellcal and permanent monitoring product lines helped increased before the market weakened. Despite the Vice President and President,optimize production from mature fields. We inaugu- impact of the economic downturn, the company Baker Petroliterated our new Center for Technology Innovation in continues to invest in growth in Russia, adding facili- James F. McCall* J. Larry Nichols H. John Riley, Jr. Charles L. Watson David E. EmersonHouston, and opened a number of new operations ties and developing our employee base. Lt. General, U.S. Army Chairman and Chief Former Chairman, Senior Advisor, Eagle Energy Vice President, Corporate Developmentfacilities across the country. (Retired) and Former Executive Officer, Cooper Industries, Ltd. Partners and Electricite de Middle East Peter A. Ragauss Executive Director of the Devon Energy Corporation France and Chairman,U.S. Offshore Baker Hughes opened a major new regional head- Senior Vice President and American Society of Military Comptrollers Wincrest Ventures L.P.Offshore U.S., deepwater operators benefited from quarters and education center in Dubai. Horizontal Chief Financial OfficerBaker Hughes technology and experience. Our drill- drilling and completions activity remained strong ining fluids experts demonstrated their leadership in Saudi Arabia with the introduction of new PDC bits Alan J. Keifer Stockholder Information Form 10-K Corporate Officedeep water with new synthetic fluids and advanced and LWD technology. Baker Hughes also gained Vice President and Controller Transfer Agent and Registrar Additional copies of the Location andhydraulics engineering. Our directional drilling and directional drilling and completions business in the John H. Lohman, Jr. BNY Mellon Shareowner company’s Annual Report to Mailing AddressLWD experts continued their record of reliability in U.A.E., built its fluids and artificial lift businesses in Services LLC the Securities and Exchange 2929 Allen Parkway, Suite 2100 Vice President, Taxdrilling through and beneath salt formations. Our Kuwait, delivered advanced completions in Qatar, 480 Washington Boulevard Commission (Form 10-K) are Houston, Texas 77019-2118completions, intelligent well technology, and flow and won a long-term artificial lift contract in Oman. Jan Kees van Gaalen Jersey City, NJ 07310 available by writing to Baker Telephone: (713) 439-8600assurance services helped optimize deepwater pro- Vice President and Treasurer (888) 216-8057 Hughes Investor Relations. P.O. Box 4740duction. And we installed ESP systems in innovative Asia Pacific Houston, Texas 77210-4740booster systems for subsea wells. In the Asia Pacific area, Baker Hughes completion Alan R. Crain Stock Exchange Listings Annual Meeting systems enhanced results from horizontal and HPHT Senior Vice President and General Counsel Ticker Symbol “BHI” The company’s Annual Meeting WebsiteLatin America wells in India. Our wireline and artificial lift busi- Sandra E. Alford New York Stock Exchange, Inc. of Stockholders will be held www.bakerhughes.comIn Latin America, Baker Hughes opened a new facility nesses showed strong gains in Indonesia. We pro- SWX Swiss Exchange at 9:00 a.m. Central Time on Baker Hughes Corporate Secretaryin Macaé, Brazil and expanded operations there to vided innovative completions and gravel packing April 23, 2009 at the Information Systemssupport deepwater and pre-salt directional drilling services in Thailand and advanced logging services Jay G. Martin Investor Relations Office Plaza Banquet Room (888) 408-4244and LWD services, while adding capabilities to pro- offshore Vietnam. In Malaysia, we drilled complex Vice President, Chief Compliance Officer Gary R. Flaharty 2777 Allen Parkwayvide drilling fluids throughout the country. Our artifi- horizontal wells and helped restore production from and Senior Deputy General Counsel Director, Investor Relations Houston, Texas 77019-2118cial lift systems helped clients throughout Latin under-performing wells. In China, our technologies Baker Hughes IncorporatedAmerica maximize oil recovery, and we introduced and services contributed to successful projects in Didier Charreton P.O. Box 4740new pumping systems for water injection. Baker Bohai Bay and the South China Sea. Vice President, Human Resources Houston, Texas 77210-4740Hughes also managed two integrated operations ir@bakerhughes.com Africa Design: SAVAGE, Branding + Corporate Design, Houston, Texasprojects in Colombia during the year and prepared Derek Mathiesonfor a major integrated project offshore Mexico to Strong activity in northern Africa included a multi-rig Vice President and Chief Technology and Marketing Officer As a Baker Hughes stockholder, you are invited to take advantage of our convenient stockholder services or requestcommence in 2009. integrated operations project and steady ongoing more information about Baker Hughes. business in Algeria, as well as increased participation in the emerging Libyan market. Baker Hughes Russell J. Cancilla BNY Mellon Shareowner Services, our transfer agent, maintains the records for our registered stockholders and can focused on opportunities in the deepwater fields Vice President, Health, Safety and help you with a variety of stockholder related services at no charge including: off West Africa. In Angola, we delivered high-end Environment and Security drilling and evaluation systems for complex wells, • Change of name or address • Additional administrative services • Dividend reinvestment enrollment and in Nigeria, we prepared a new facility to serve • Duplicate mailings • Consolidation of accounts • Transfer of stock to another person offshore customers. • Lost stock certificates Access your investor statements online 24 hours a day, 7 days a week with MLinkSM. For more information, go to www.melloninvestor.com/ISD. *Will retire at the Annual Meeting of Stockholders to be held April 23, 2009.

×