Baker Hughes Closes Another Texas Location

Layoffs Continue as Energy Giant Prepares for Merger
Baker Hughes Cuts Jobs

Baker Hughes Cuts Jobs

Baker Hughes pink slips are starting to add up. The latest casualties are the 54 employees who will be out of work when Baker Hughes permanently closes its office in Bryan, TX.

Since the first of the year, Baker Hughes has closed other Texas locations including operations in Mineral Wells (110 employees), Kilgore (58) and Alice (51).

Related: Energy Giants Announce Layoffs 

Baker Hughes representatives continue to say that job cuts are part of a company wide workforce reduction of an estimated 7000 workers in order to minimize costs during this downturn in oil prices. Also at play is Baker Hughes’ upcoming merger with Halliburton, where it is likely that both companies will combine operations and eliminate redundancies.

Related: Halliburton to Merge With Baker Hughes

The Houston Chronicle reported in December that the combined company expects to make $2 billion in cuts, with most of the job loses coming from operations.

Baker Hughes CEO Martin Craighead told the Houston Chronicle that, “We don’t want to be insensitive to the uncertainty and acknowledge that the fact that anytime you have institutions of this size coming together there will be some adjustments, but I think it would be premature to speculate” 

 

Halliburton Opens San Antonio Office & Operations Center – Will Service the Eagle Ford

The Company Spent $70 Million To Construct the Facility
Halliburton Administrative Office - San Antonio

Halliburton Administrative Office – San Antonio | Click to Enlarge

Halliburton has officially opened the company’s $70 million San Antonio office in southern Bexar County.

The new operations center will serve the needs of the Eagle Ford and the surrounding area. The company’s South Texas operations have grown in stride with the Eagle Ford.

Halliburton has hired 550 employees and expects to add another 450 oilfield related jobs by the end of the year. The facility was designed to support as many as 1,500 employees. [Read more…]

Lower Rig Count, But More Drilling in 2013 – Schlumberger – Halliburton

A Bounce in the Liquids Rig Count Is Expected

Drilling Rig ImageIn the company’s fourth quarter conference call, Schlumberger (SLB) executives stated they expect the active rig count will fall from the 2012 average, but there will be more wells drilled. SLB reviews its outlook for North America in its conference call each quarter. The company does expect the liquids rig count to increase in the first half of the year, but does not expect much if any recovery in natural gas drilling.

Paal Kibsgaard, CEO, stated, “But if you look at our view on 2013 for North America, we expect the U.S. land rig count to be up between about 100-150 rigs in Q1, and this is based on the feedback from our customers. Now in terms of activity for the full year, we still see U.S. land rig count slightly down versus 2012, while the well count will be slightly up.”

Halliburton is also expected to echo the same sentiment in its call today. The following statement was included in the company’s press release:

“In 2013, we anticipate the North America rig count will improve from fourth quarter levels but will be down slightly compared to 2012.”

Other notable items from the SLB call include:

  • Expects the liquids rig count to bounce up in the first quarter of 2013
  • Do NOT see a significant recovery in dry-gas drilling in 2013
  • Natural gas production remains strong
  • Hydraulic fracturing pricing is not expected to increase in 2013

As you hear locals begin to discuss rigs moving out of your area. Remember, a lower rig count does not mean there will be fewer wells drilled. Operators get more efficient over time and need fewer rigs to develop their acreage.

Eagle Ford Oil & Gas Completion Technology – HAL – SLB – GFS.TO

GasFrac Photo

GasFrac LPG Completion

Eagle Ford completion technology is evolving as it needs to if operators want to remain competitive. Operators have lots of theories, but the proof is in the pudding. Drilling and completing wells is the only real way to test new technologies.  That technology is needed as we experience rising service costs, along with natural gas prices of $4 per mcf and oil prices that look to be below $90 for the foreseeable future. $90 a barrel isn’t bad, but it isn’t $100.

Petrohawk was the first to announce a major change in completion technology by using Schlumberger’s Hi-way Frac system. SLB refers to it as “HiWay Flow Channel Fracturing”. Fancy name and all, nobody really cares unless it delivers. For Petrohawk, it looks to have done just that. Petrohawk had utilized hiway fracs in 12 wells that had a production history of 90 days or more as of June. Those 12 wells had produced 32% more at a pressure 42% higher than other wells with a choke (18/64ths). More production at a higher pressure is about as good as it gets. The higher pressure indicates better overall communication, which is great in tight shale rocks. We’ll hear more about hiway fracs as operators test it in other parts of the Eagle Ford and in other plays. Read more on Schlumberger’s HiWay Flow Channel Fracturing at www.slb.com  [Read more…]

Halliburton San Antonio Office to be a Bexar County Supersite

Halliburton’s San Antonio office will be here soon and it will be big news for Bexar County. The quote of the article is “supersite”. Halliburton has over 2,100 employees in South Texas. That’s a good indication of how many people could be directed from the San Antonio office. That number will likely grow with drilling and production in the Eagle Ford.

The site for the proposed Halliburton office has yet to be determined, but the company owns 150 acres at the northeast corner of Loop 1604 and Interstate 37 in southeast Bexar County, TX.

You can bet the office will bring several hundred jobs and possibly 1,000+ to the San Antonio area. Baker Hughes’s San Antonio operations center was announced a little over a month ago and it is expected to bring 400 jobs to the area. Weatherford’s Bexar County office is just across the street from where Halliburton owns land and on top of that, Schlumberger’s South Texas office will likely be announced in the coming months.

I’d bet the greatest number of jobs will be sourced from Halliburton’s office. Just being conservative, those four companies will easily add 1,000 full time jobs to the area. There are already lots of openings and this will add to the booming energy job market in South Texas. If you’re looking for a career in energy, search Eagle Ford Shale Jobs Here. [Read more…]

Schlumberger Planning San Antonio Office Too

Schlumberger’s San Antonio office will likely come not long after Halliburton’s office is announced. The company’s Eagle Ford Shale office will not rival the size of Halliburton’s, but Schlumberger has a major presence the surrounding areas. Still good news for San Antonio. [Read more…]

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