Oilfield services companies: 3 flavors
Some make Snd sell expensive kit for use on drilling rigs or seabeds. Fmc, Cameron and national oil well varco.
Some own and lease out drill rigs. Transocean, seadrill, noble and rown
3rd group carries out most tasks in finding and extracting oil; schlumberger, Halliburton, baker Hughes and weatherford.
Ofs companies do not own reserves.
Oil companies outsource the drilling. This looks like a bad deal for them. Hostage to ofs. Global production from mature oilfields falling 2-6% a year. More innovative drilling needed.
Lot of state owned oil companies are coming up now. Worse for oil companies like Exxon. This leads to competition for ofs and allows state owned oil companies to claim and pursue best oil acreage.
Ofs balance sheets are smaller, do not own reserves and do not want to compete with customers. Choosing where to explore is tricky.
