As an equipment and solutions provider, NOV focuses both on M&As, and various internal R&D initiatives for the oil and gas industry. Currently, there are three business Segments in the company: NOV Rig Systems, NOV Completion & Production Solutions (CAPS), and NOV Wellbore Technologies. Within NOV Completion & Production Solutions the company has been actively participating in deepwater and shallow water production projects for many years. As a partner inside Mexico’s oil and gas environment for quite a few decades, NOV has established facilities throughout the country. “We see a strong push toward the production market in Mexico, as well as the need for drilling in areas included in the bidding round initiative,” asserts Richard Blackett, Global Account Vice President for Offshore Production at NOV Completion & Production Solutions. NOV is eagerly awaiting the development of the bidding rounds and the entry of the winners for shallow water and deep-water fields.
Considering the current condition of the market, Blackett finds that players are often surprised to find that investors are eager to invest based upon the recovery of oil prices. “The investment community is longing to contribute to the oil industry, and by having well-planned shallow and deepwater prospects our industry will move past the current downturn,” he explains. Given the elements that are required to initiate contracts, funding, and field development plans for deep and shallow water production opportunities, a substantial amount of work is required to reach first oil. However, Blackett is certain that the price per barrel of oil today will not be the same as what the market offers once an offshore artifact reaches the field to begin producing. “Having NOV as a key equipment supplier helps our customers attain and attract investors,” he boasts. “We are a strong company with a strong balance sheet and here to help our industry thrive again.”
NOV distinguishes itself from its competitors by being one step ahead of the market, with divisions that work together to create packaged solutions that can meet the needs of each client. The company seeks to be innovative through organic, as well as inorganic growth, forming strategic alliances with partners that are complementary to NOV’s business strategy. “Our research and development teams are constantly searching for new ways to align existing products with the flow of the ever-changing oil and gas industry,” Blackett shares. He explains a recent trend, where wells are becoming deeper and more complex, and temperature and pressure levels are bordering what is available using current technology. These shifts are creating demands for new technology and intelligence that can improve production levels.
As a result, NOV is creating solutions that combine proven technologies with concepts offered across the globe. “Our technology helps operators feel more confident about the energy transition, specifically in shallow areas and fields that need to be developed or enhanced,” says Blackett. In terms of technology, NOV offers solutions like the innovative Rig Wizard online tool that allows the customer to adapt the drilling equipment to its demands by adjusting elements such as power, with a range of 700-3,000hp. Large, independent companies that discovered new tools after hiring NOV as their equipment supplier are now partnering with the company. “Strategic alliances can save money and improve production since the supplier and operator can address the needs of the field at an earlier stage,” Blackett explains.
The NOV Completion & Production Solutions Segment is focusing on land, shallow water, and mature opportunities. “The entrance of 3D technology made the industry realize that wells in general were only partially exploited, sometimes only to 10%, and an old well that was declining to the point of being shut in can be surveyed with new technology and operators often find new potential that was not previously understood,” he highlights. Likewise, NOV is actively involved in the floating production arena. Blackett is confident that the company’s business model defies the current, broken, and traditional system. “Simply put, we offer a different strategy that is more efficient and effective. We are redefining how offshore production contracts will be written for the benefit of all parties,” he illustrates.