Six Tech Advancements Changing the Fossil Fuels Game

The drivers are new regulations, rising operating costs (think unconventional drilling) and increasing competition (a lot more players on the field, and the rising ranks of the juniors).

WHO TO WATCH (AND OWN)

In the high-tech hydrocarbons game these are our four picks: General Electric (GE) for subsea infrastructure; Transocean (RIG) for deep and ultra-deepwater rigs, Schlumberger for 3D seismic, and FMC Technologies.

As upward pressure pushes up day rates for deep-water (especially ultra-deep) rigs, it's Transocean (NYSE:RIG) all the way. This year's already been a pretty good year for Transocean, despite some rather serious legal problems, and it's got a nice backlog of contracts. But we're also looking at Ensco and SeaDrill.

But hands down, it's GE Oil & Gas, General Electric's fastest-growing segment, with annual 16% revenue growth over the last three years. GE is one of the most diverse companies out there, and it has carved itself a nice niche in the oil and gas sector. And it's impressively forward-thinking—from massive LNG projects to subsea drilling equipment. GE is positioned to experience significant growth.

This year has been an amazing year for GE Oil & Gas, with a list of contracts that would impress the biggest skeptic. Since January, GE has sealed a $620 million, 22-year contract for QGC's Queensland Curtis LNG plant offshore Australia; a $333 million 16-year contract extension for Russia's Sakhalin-2 LNG plant; a $500 million contract Petrobras for new pre-salt projects in Brazil; $600 million in multiple-customer propulsion system contracts; and most recently, a $147 million deal with Statoil for carbon dioxide injection. Adding to GE Oil & Gas' market share here is the recent acquisition of Lufkin Industries. Though it had a very rough time of things during the financial crisis, GE has turned around—and quickly. Downsizing GE's Capital Division has been fortuitous, and we see huge things ahead for this company.

By: OilPrice.com Premium Analysts


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WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

David Tkachuk  |  July 19, 2013
Onshore pad drilling aka octopus drilling certainly isnt new to the oil & gas industry. Its a very standard onshore approach in northern climes where tundra must be contended with, just to list one example. My own experience commenced in the early 80s in the Canadian Arctic with Esso but Ive also pad drilled in Siberia where "Kyusts" (the Russian term for pads) are as common as mink coats, and have been for about a century. Therefore, I have difficulty understanding all the present day "hoopla" around pad drilling. Its a natural, and rather transparent adaptation from offshore platform drilling to onshore applications as required.
Buster Bryant  |  July 18, 2013
It is not clear (to me) from the article how the Octopus concept differs from the SOP of Alaskas North Slope. This approach to drilling wells has been employed and refined essentially since development began at Prudhoe Bay in the late 1970s.