Press release

GE to take the leap – GE/BHI to reposition itself within top four service providers

October 31, 2016
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Six months after Halliburton gave up on the merger with Baker Hughes, another large player, GE, took their place. After having analyzed potential product lines to be divested in the HAL-BHI deal, GE already had a solid understanding of Baker Hughes and saw the strategic potential to further expand their interests into the well service and commodities segment.

"With this act, GE would truly take the leap to play with the big boys in the service market" Audun Martinsen, VP of Oilfield service at Rystad Energy says. "Not only will it position GE-BHI as one of the top three equal sized companies below Schlumberger, but it will be the largest provider of artificial lift services, controlling a market share similar to the size of Schlumberger and Weatherford combined". The brownfield market is becoming more important in a low price environment, and GE will gain good exposure with Baker Hughes’ strong ESP capabilities. The new entity will also mimic the overall capabilities of Schlumberger and Cameron, with well service and subsea Equipment product lines. "Technology and synergies are key in the future oil and gas market and GE-BHI represent a good opportunity to take on that challenge". All is set for success, towards 2020 the new GE-BHI entity can expect a growth of 9.4% annually in revenues. This number is higher than the average OFS market growth with 180 basispoints, based on the exposure to segments and geographies.



Article contacts

Audun Martinsen, VP Oilfield Service Research
Phone: +47 24 00 42 00

Julia Weiss, VP Marketing
Phone: +47 48 29 87 61

About Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products.

Rystad Energy’s headquarters are located in Oslo, Norway. Further presence has been established in Norway (Stavanger), the UK (London), USA (New York & Houston), Russia (Moscow), Brazil (Rio de Janeiro) as well as Singapore and Dubai.