National Oilwell designs, manufactures and sells comprehensive systems, components,
and equipment used in oil and gas drilling and production, as well as distributes
products and provides services to the exploration and production segment of the
oil and gas industry.
Our Products and Technology segment designs and manufactures complete land
drilling and workover rigs, as well as drilling related systems for offshore
rigs. Technology has increased the desirability of one vendor assuming responsibility
for the entire suite of components used in the drilling process, as mechanical
and hydraulic components are replaced by or augmented with integrated computerized
systems. In addition to traditional components such as drawworks (the hoisting
winch used to raise and lower drill pipe), mud pumps (used to circulate drilling
fluids), top drives (used to turn drill pipe), derricks, cranes, jacking and
mooring systems (used to raise and lower offshore jackup drilling rigs and anchor
floating drilling rigs), and other structural components, we provide automated
pipehandling, control and electrical power systems. We have also developed new
technology for drawworks and mud pumps applicable to the highly demanding offshore
markets.
Our Petroleum Services & Supplies segment provides a variety of consumable
goods and services used to drill, complete, remediate and workover oil and gas
wells and service pipelines, flowlines and other oilfield tubular goods. The
segment manufactures, rents and sells a variety of products and equipment used
to perform drilling operations, including transfer pumps, solids control systems,
drilling motors and other downhole tools, rig instrumentation systems, and mud
pump consumables. Demand for these services and supplies is determined principally
by the level of oilfield drilling and workover activity by drilling contractors,
major and independent oil and gas companies, and national oil companies. Oilfield
tubular services include the provision of inspection and internal coating services
and equipment for drillpipe, linepipe, tubing, casing and pipelines; and the
design, manufacture and sale of coiled tubing pipe and advanced composite pipe
for application in highly corrosive environments. The segment sells its tubular
goods and services to oil and gas companies; drilling contractors; pipe distributors,
processors and manufacturers; and pipeline operators. This segment has benefited
from several strategic acquisitions and other investments completed during the
past few years, including operations in Canada, the United Kingdom, China, Kazakhstan,
and Mexico.
Non-capital revenue sources within our Products and Technology segment include
drilling motors and specialized downhole tools that are sold or rented, spare
parts and service on the large installed base of our equipment, expendable parts
for mud pumps and other equipment, and smaller downhole, progressive cavity
and transfer pumps.
Our Distribution Services segment provides maintenance, repair and operating
supplies and spare parts to drill site and production locations throughout North
America and to offshore contractors worldwide. Increasingly, this business also
is expanding to locations outside North America, including the Middle East,
Southeast Asia, and South America. Using our information technology platforms
and processes, we can provide complete procurement, inventory management, and
logistics services to our customers.
The oilfield services and equipment industry is highly competitive and our
revenues and earnings can be affected by price changes, introduction of new
technologies and products and improved availability and delivery. Our Products
and Technology business segment competes with several companies in North America
that have drilling products that compete directly with certain of our products.
Our Distribution Services business segment competes with various smaller regional
competitors who may have strong direct ties with smaller or decentralized drilling
and production companies and other multinational distribution companies on the
basis of service and price. None of these competing companies dominate in any
of the business segments or geographic areas in which we operate.