First quarter earnings call coming April 22 so will not comment during presentation or break out session on quarter. Baker Hughes spent much of its time discussing its investment in research to handle the increasingly complex drilling that is needed today. They company went into great detail on it new technology center and how it would help expand its capabilities. Maybe Baker Hughes felt it had to justify the cost to investors.
Long term growth strategy – People -added 1200 people in 2007, difficult to find people with technical skills – invested much more in training.
Long-term growth strategy – technology
Long-term growth strategy – Infrastructure $300 million to expand international infrastructure. Opened new campus in Dubai which is regional headquarters for Baker Hughes. Phase 2 to have manufacturing center focusing mainly on sand control product line.
Center for Technical Innovation (CTI) is second major facility being opened. Will expand capability to 40,000 psi and 700 degree Fahrenheit.
Completion applications becoming more sophisticated as drilling gets more technically complex. That is one of the purposes of the CTI.
Production optimization is key to any oil service company – increased recovery factor is needed to produce energy for world.
Saudi Arabia is a key market the last few years – Saudis using Auto-Trak in offshore field, and has a joint development project on MRI to help drilling.
Tuesday, April 8, 2008