Baker Hughes Corporate Overview
Baker Hughes Incorporated (NYSE: BHI) creates value from oil and gas reservoirs with high-performance drilling, evaluation, completions and production technology and services, integrated operations and reservoir consulting. Our solutions are designed to lower costs, reduce risk or improve productivity for the global oil and gas industry.
Baker Hughes was formed in 1987 with the merger of Baker International and Hughes Tool Company—both founded over 100 years ago when R.C. Baker and Howard Hughes, Sr. conceived ground-breaking inventions that revolutionized the fledgling petroleum era. Since those earliest advancements, we’ve never stopped searching for solutions to conquer the next frontier.
Regions and Geomarkets
At Baker Hughes, collaboration is at the heart of our business. With 34,000 employees in more than 80 countries, our local geomarket teams work side by side with customers to engineer reliable, application-specific products and services—whether the application is deep water, unconventional hydrocarbons or production and water management.
Our nine geomarket management teams work to understand customer needs and coordinate delivery of individual products or comprehensive service solutions that include the right Baker Hughes technologies for the project. The Baker Hughes geomarkets are North America, South America, North Sea, Europe/Russia Caspian, Asia Pacific, Saudi Arabia, Middle East, Africa and Latin America.
At Baker Hughes we offer customers differential performance in three key areas:
Local Baker Hughes teams are supported by global technology centers of excellence, where scientists push the boundaries of value-adding technology to find solutions for progressively more complex technical challenges. Baker Hughes consistently invests a greater percentage of revenue in research and engineering than its oilfield services peer group. Since 2001 we have doubled our annual investment in research and engineering, which totaled approximately $400 million in 2009. Our technology program is two-tiered:
At dedicated innovation centers, which are outfitted with state-of-the-art laboratories, prototype equipment and testing facilities, scientists conduct both applied and game-changing critical research. At our recently opened regional technology center in Dhahran, Saudi Arabia, we collaborate with customers as well as local universities to jointly develop technology for specific regional needs. Another regional technology center is set to open this year in Rio de Janeiro, Brazil. And engineers and scientists at our product centers work on next-generation products and services for drilling and evaluation, completions and production, and fluids and chemicals.
Product Line Expertise
Baker Hughes’ global operations are backed by three business segments covering nine product line groups that develop, manufacture and support industry-leading technologies.
Drilling, Evaluation and Fluids
Baker Hughes is the leader in tricone and PDC drill bit, ream-while-drilling and casing drilling technology. Our application and design engineers work with customers to provide the best drill bit for the application to continuously improve drilling performance.
We offer directional drilling and formation evaluation expertise through a worldwide service organization. Real-time drilling and evaluation services help oil companies drill more efficiently, evaluate geologic formations and place wells in productive zones within the reservoir. Important technologies include automated rotary steerable directional drilling systems, high-performance drilling motors and integrated logging-while- drilling assemblies.
Our Reservoir Navigation Services optimize wellbore placement through the combination of reservoir modeling, the industry’s most comprehensive real-time drilling evaluation toolkit and 3D/4D visualization software with interpretation experts. The service is designed to optimize production and increase overall asset recovery by reducing uncertainty during drilling and delivering maximum reservoir contact in the targeted zone.
The Baker Hughes formation evaluation group provides a complete range of wireline logging services for every environment, including advanced formation evaluation, production and reservoir engineering, petrophysical and geophysical data acquisition services. Wireline services also include perforating and completion technologies, pipe recovery and processing and analysis of open and cased hole data.
Our drilling and evaluation business segment service offerings include data communications, data management and expert centers to improve drilling operations and enhance formation evaluation in real time.
Baker Hughes drilling fluids systems and services help optimize drilling and completion processes to maximize hydrocarbon production and manage drilling waste. Leading technologies include environmentally compliant water-based and synthetic-based mud systems and remediation fluids that can restore productivity from damaged wells.
Completions, Production and Chemicals
Baker Hughes provides completions, intelligent production and intervention solutions that help manage costs and reduce risk while maximizing recovery. We offer a comprehensive line of completion systems, which optimize performance and safety from the reservoir to the surface.
Production optimization services include permanent monitoring, chemical automation, and intelligent production systems. Wellbore intervention solutions address issues ranging from temporary well abandonment and fishing to casing exits, wellbore cleaning, and isolation, remediation and stimulation operations.
Our artificial lift product line provides electrical submersible pumping (ESP) systems and progressing cavity pumping (PCP) systems, as well as specific engineering, project management and well monitoring services. Baker Hughes ESP systems can operate in harsh downhole environments that include high gas-to-oil ratio production, heavy oil, high temperatures and abrasive-laden fluids. New systems also address the needs of coalbed methane, gas well de-watering, steam assisted gravity drainage (SAGD) projects and subsea production.
Baker Petrolite, a Baker Hughes company, provides chemical technology solutions for hydrocarbon production, transportation and processing, and also delivers pipeline integrity services. Baker Petrolite is a leader in oil/water separation technology and in solutions to control corrosion, deposition, bacteria and hydrogen sulfide in producing wells and production facilities. To serve refinery and petrochemical customers, Baker Petrolite provides chemicals and technical support to enhance plant processes, improve productivity, manage water treatment and resolve environmental issues.
Baker Hughes is a leading provider of field development and production enhancement services, including well stimulation, cementing, sand control, coiled tubing, completion tools and fluids, downhole tools, and casing and tubular running services for new oil and natural gas wells and in remedial work on existing wells. Production enhancement solutions, such as engineered operations in formation damage removal, fracture stimulation and water conformance engineering, maximize productivity and reserve recovery. Expert shale fracturing services and mature field rejuvenation suit the most challenging economic, technical and environmental goals.
Reservoir Development Services
Baker Hughes boasts one of the strongest and best-known reservoir technology and consulting teams in the oil industry. The company initially expanded its reservoir capabilities with the acquisition of international advisory firm Gaffney, Cline & Associates (GCA) and geomechanics software and training consultants GeoMechanics International in 2008. In 2009, Baker Hughes further grew its reservoir capabilities with the acquisition of two subsurface and wells consultancies, Helix RDS and Epic Consulting.
These four leading consultancies form the bedrock of Baker Hughes’ Reservoir Development Services (RDS) business segment. The combination of these strong individual organizations into a world-class reservoir consultancy service positions Baker Hughes as a top-tier partner for oil companies throughout the asset life cycle, from the earliest phases of project development through enhanced oil recovery.
For over 45 years, customers around the world have trusted Gaffney, Cline & Associates (GCA) for strategic advice on how to maximize reservoir productivity for the highest commercial results.
The GCA group is an unparalleled independent consultant for operators whose focus is reservoir engineering, exploration, field development, drilling and production, or pipeline, refining and LNG projects.
Geomechanics modeling offers practical methods of reducing exploration risk, saving nonproductive time and increasing production and recoverable reserves over the life of the reservoir. Baker Hughes’ GeoMechanics International (GMI) pairs more than 20 years of research with over 13 years of practical field experience to deliver consulting, training and proprietary software services.
Baker RDS provides consulting services ranging from reservoir engineering to production technology. Since 1994, Baker RDS has conducted projects targeted at asset evaluation, formation evaluation, production chemistry, reservoir performance and software engineering.
Global simulation studies and reservoir characterization and geostatistics projects are the focus of Baker Hughes’ Epic Consulting Services team. Versed in the latest simulation, geological modeling and integrated reservoir modeling software and analysis techniques, the Epic team advises customers on all aspects of challenges related to petroleum engineering and reservoir simulation.