More Related Content
Viewers also liked
Recently uploaded
Recently uploaded (20)
2014 Analyst Conference
- 4. PARTNERSHIP
- 6. WELLS
- 7. PRODUCTION
- 8. RECOVERY
- 9. LEAD IN THIS DECADE WE WILL
Editor's Notes
- There’s a new pulse at Baker Hughes. There is a new Energy. A new Spirit. It’s transforming this company and its effects are far-reaching. It’s making a difference in the way we look at ourselves, our role in the energy industry, and our responsibilities. It’s enabling us to imagine whats possible …….and to create new realities for Baker Hughes. And – most important – this new pulse and growing spirit is providing us with a sharper focus and clear sense of purpose.
- I want to share with you what we are building here at Baker Hughes. We are building a new culture. That affects every element of our business -- how we see ourselves, and how we feel about ourselves. How we step-up and take-on our responsibilities. This emerging culture is creating a new sense of confidence and total ownership for outcomes. This company has its own identity. Baker Hughes is like no other company in the world. I want you to know, I despise business as usual….its no longer business as usual at Baker Hughes. Get to know as many of our folks as you can tonight and tomorrow. You will see, we are all about winning and we are all about outcomes. It all starts with culture – what kind of people we are ….and what kind of company we’re becoming. We have always been known as a world-class supplier. Now we are shaping ourselves to be a world-class partner. The Partnership is the end state. Partnership is achieved as our Strategy is executed. Our Strategy is straight forward. Its centered around our customers challenges.
- When I look at the world through my customer’s eyes, I see three glaring needs emerging: First, To fundamentally improve the conversion efficiency of Wells. Second, To commercialize our broad portfolio of creative solutions to accelerate and optimize customer’s Production, Third, To utilize the full strength of our reservoir and geoscience capabilities to improve our customers ultimate recovery. These are the three WHATs of our corporate strategy….EffIcient Wells, optimized Production and Improved Recovery.
- Baker Hughes will Differentiate and drive Earnings in HOW we Execute this strategy. The How is rooted in what we do well at Baker Hughes, and is all about driving Earnings through…. Innovation; redefining technical limits and pushing the pace of commercialization, through Integration; creating new service combinations from within our portfolio, and through Interdependence; ….elevating and redefining collaboration with our customers to tackle the toughest challenges they face. The What….Effecient Wells, Optimized Production, Improved Recovery. The How….Innovation, Integration, Interdependence. Our Strategy is simple, concise and ALIGNED with our customer’s view and our customer’s challenges. Its focused, and centered on Value Creation. Our Strategy, brilliantly executed, leads to pure Differentiation. Furthermore, execution of this strategy, leads to deeper, broader and richer partnerships, culminating into differential shareholder value. Which is why I have no doubt, that as we become the preferred partner for our customers, and our communities……we also become the preferred partner for You. Before you leave this conference you will feel the new pulse in Baker Hughes. You will understand our Strategy. Additionally, it’s important to me that you not leave before you understand what makes us unique, and why… I want to provide further context of the WHAT and HOW elements of our Strategy as it relates to our customer’s challenges. We all know that for more than a century, Baker Hughes has been inventing industry shaping products and services. Yet today, our customers’ challenges are even greater.
- Baker Hughes has thousands upon thousands of customers. If I take just our top 20 customers, they hold total reserves of more than 1 trillion barrels of oil equivalent. Together, they produce about 65 million barrels per day. Those 20 customers will spend over $100 billion dollars on well services, associated with our product lines this year…and they plan to increase that spend 5% incrementally year over year to drive just 1% of increased production. Its abundantly clear this industry requires greater efficiency and recovery. And that’s a strikingly obvious opportunity. The solution to the efficiency/recovery problems will be found in new and emerging technologies from Baker Hughes. And as time marches on, I predict a growing reliance – a growing Interdependency – between operators and Baker Hughes. This customer challenge is driving another industry trend, and that’s the evolution of supply sources. Diversity and rate of growth in supply sources as a result of breakthrough technologies has fostered new opportunities. Countries are recognizing the possibility of becoming energy-secure, if not independent, by developing their own unconventional resources and creating more employment opportunities for the local population. Additionally, growth in offshore has gone far beyond the Golden Triangle. And finally, lets not forget the rising flow of capital to the midstream and downstream infrastructure space. Across all these environments, Baker Hughes has emerged as a critical-path component for our customers.
- Our customers continue to grapple with rising “finding and development” costs. Today these costs are outpacing inflation – and a large portion of this spend is in providing physical access to the reservoir through the development of wells and associated infrastructure. Wells – their design and their construction – is at the core of the Baker Hughes DNA. But today we are focusing that expertise on redefining the technical limits for well delivery, by asking ourselves and our customers….What’s possible?
- We own the leading position in the production phase of the asset lifecycle – not only with our artificial lift business and intelligent production systems, but also with our upstream chemicals business. To give you an example, the fluid separation technology introduced in our first-generation of TRETOLITE products 100 years ago remains a major differentiator for Baker Hughes today. I mentioned the growing significance of midstream and downstream challenges for our customers, because the very best wells and production profiles remain sub-optimal if our customers cannot get their product to market reliably and safely. While the fantastic growth of US unconventionals was partly enabled by the extensive midstream infrastructure in place, countless bottlenecks and pinch-points remain that are creating inefficiency problems for our customers. More importantly, this infrastructure is being asked to work longer and harder than it was ever designed for. And these problems will repeat themselves everywhere in the world that hopes to diversify into unconventional production. Furthermore, within the deepwater markets, asset integrity and flow assurance are at the center & paramount to the economic viability of these Ultra Deepwater prospects. Baker Hughes, and only Baker Hughes has the portfolio, the inspection and profiling technology, the chemistry, and the global infrastructure to assure safe and reliable transmission of our customer’s products.
- Since we all accept that wells are not getting simpler, or cheaper --- and that optimized production is always a central challenge for our customers–it’s imperative for our customers to realize maximum recovery, and therefore maximum return, from each well they choose to drill. Which is why we are dedicating more resources than ever on Recovery – by challenging our technology organization to create integration opportunities across the myriad of product lines we own, in order to find unique answers to their recovery challenges.
- I told you when I took the stage tonight that there’s a new energy at Baker Hughes – and this energy is transforming our company. Because I firmly believe, that as the mindset of our leaders changes, leadership grows and consequently business results grow. This new mindset is also making a difference in the way we think about our role and our purpose – not only in this industry but in the world. Our purpose at Baker Hughes….