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The French hydrocarbons sector, which traces its roots back to the turn of the 20th century, has proven to be resilient, technologically adept and resourceful in finding oilfield lodging and innovative ways to cope with the current crisis.

In recent decades, French oil and gas companies have grown used to market fluctuations, but the current downturn in the oil price has challenged the very fundamentals of the industry, triggered unprecedented structural changes and brought need for reform in the French oil and gas industry front and center.

Patrick Pouyanné, CEO of Total, places the blame for the current slowdown on price fluctuations, the unexpected emergence of unconventional hydrocarbons and competition between various forms of energy. France’s flagship oil and gas company is today actively seeking spending cuts, but as Pouyanné explains, this was not a priority just a few years ago. “While cost-cutting might seem obvious today, it was not the case a few years back. Things had escalated to the point that many in the industry had forgotten that when working with commodities, it’s essential to carefully manage your expenses and your cash break even.” Even France’s IOC has been shaken by the current situation. “Our size may prevent us from collapsing in the short term but we must remain extremely cautious and acknowledge what economic signals are telling us.”

Patrick Pouyanné,
CEO, Total
Thierry Pilenko,
chairman and CEO, Technip

“What clearly distinguishes the current crisis from previous ones is that some of the oil majors have almost immediately initiated a staff reduction,” explains Thierry Pilenko, Chairman and CEO of Technip. “What also differentiates the current situation with the 2009 crisis is the immediate reaction from both IOCs and NOCs.”

“No one had introduced the topic of shale gas before I left Total in 2002,” admits René Bauquis, a prominent geologist and economist. “It had barely started to emerge in the US. When I realized that this new industry was growing, and growing very quickly, it was very unexpected. Of course, shale hydrocarbons were known but we were convinced that these hydrocarbons would forever remain economically unviable to produce.”

While the current slowdown is compelling major French companies to introduce cost-effective solutions, many regret that these measures weren’t adopted sooner. Philippe Crouzet, Chairman of Vallourec, explains that prior to this crisis, the oil and gas sector’s performance data had sent a clear signal indicating a need for reform, which companies initially ignored. Indeed, returns on capital expenditure had drastically diminished long before oil prices started to crumble.

Philippe Crouzet,
chairman, Vallourec
Jean-Georges Malcor,
CEO, CGG

Some French companies were more attentive to market signals. “We were among the first companies to sound the alarm,” says Jean-Georges Malcor, CEO of CGG. “In December 2013, we outlined the details of our transformation plan, which consisted of reducing our footprint in acquisitions and reducing our cost base to become more agile.” When market conditions worsened in 2014, CGG furthered its efforts by reducing its fleet size and cutting its global headcount by 12 percent, drastic measures that Malcor presents as a necessary evil. “The situation paradoxically helped us complete this transformation faster than expected. There has fortunately been positive feedback from the oilfield lodging market.”

While all companies, irrespective of size and position in the value chain, endorse cost-cutting measures, they fail to agree on who exactly should bear the burden.” The dramatic changes occurring in our business environment and their implications to our clients’ cash flows compelled them to enact drastic measures. Their reaction is only natural but they need to seek further cooperation with their contractors to foster a resilient cost-environment.” asserts Thierry Pilenko, Chairman and CEO of France’s leading engineering, construction and project management company Technip.

Some companies have managed to mitigate the effects of the crisis through good portfolio management. “In spite of strong challenges generated by the slowdown, we are entering this difficult period having achieved a record of order intakes in 2014,” reveals Pilenko, “The steps we have taken to broaden our portfolio of solutions have contributed significantly to our solid performance. We won many projects in the subsea world thanks to our complete set of solutions.”

Reactivity and proximity are the new watchwords of Dominique Henri, Chairman and CEO of Heurtey Petrochem, an engineering and project management company specialized in two market segments; process furnaces for refining, petrochemicals & hydrogen production, and natural-gas treatment, through its subsidiary Prosernat. “We capitalize on our new fabrication facilities, project management and engineering offices in India to deliver our services more effectively in Asia and the Middle East,” he explains.

Arnoult Gauthier,
president, SeaOwl

The ability of E&P and EPC companies to drastically reduce costs and introduce internal flexibility has created an unprecedented window of opportunity for ambitious niche players that can assist them in fulfilling this objective: “Our business model consists of enabling oil and gas companies to provide quality at a global level without enduring unbearable costs,” explains Arnoult Gauthier, president of SeaOwl, an asset management and technical assistance company. Gauthier firmly believes that the oil and gas industry cannot afford to be conservative and complacent, and must outsource wherever possible to reduce costs. “For instance, in asset management, we provide integrated services that cover the marine side of FPSOs,” Gauthier explains. “Our role is to assess from a global perspective, which people will be needed in which positions, and where the risks lie in terms of safety.”

GENERATIONS OF UNLOCKING TECHNOLOGICAL BARRIERS

Although France doesn’t have any significant hydrocarbon production of its own, it has nevertheless managed to create an oil and gas industry composed of market leaders in virtually every segment of the value chain. “Very few people know that France is the world’s second largest oil services industry in terms of exports,” says Jean Ropers, the former chairman of the French Association of Companies and Professionals in the oil, gas and related industries, or GEP-AFTP.

Jean Ropers,
chairman 2009-2015, GEP-AFTP

France’s involvement in oil and gas dates back to the end of the First World War. Successive governments recognized the significance of oil and gas as a pivotal resource to win major wars. “In 1924, the French government created an ad hoc company called Compagnie Française Des Pétroles,” explains Daniel Valot, Technip’s Chairman & CEO from 1999 to 2007. “Later on, wishing to monitor its oil supplies more closely, the French authorities enacted a law in March 1928 that gave the French state a monopoly on importing and refining crude oil, but would delegate this monopoly to various French companies.”

The credibility and quality of this French expertise arguably stems from the scientific excellence of engineering schools such as Ecole Polytechnique, and various research institutes and associations have successfully translated this engineering excellence into oil and gas expertise. Olivier Appert, chairman and CEO of IFPEN from 2003 to 2015, the institute that has over the last 70 years accompanied oil and gas companies during phases of radical technological transformation, explains how within the French oil and gas community, IFPEN symbolizes the epitome of innovation and successful R&D. “We are an innovative center, developing products and processes to match the demands of both the industry and society at large. We always have one foot in pure science but keep an eye on commercialization,” Appert explains. IFPEN contributed to the creation of companies like Technip and Coflexip, but also niche market leaders such as Eurecat, a renowned supplier of catalyst processes, and Axens, an engineering company that still conducts research programs in cooperation with IFPEN and develops state-of-the-art technologies, oilfield lodging services, catalysts and adsorbents with optimum performances for the refining, petrochemical, gas and alternative fuels industries.

Olivier Appert,
chairman & CEO 2003-2015, IFPEN

In spite of its rigid labor market and high labor costs, France is home to the research, execution and project centers of several international companies. “Saipem France has become a leading project execution center for Saipem globally,” declares Fabio Pallavicini, CEO of the French affiliate. “Technological development is undeniably critical to our success and explains the importance of our Paris office as a project execution center. We have established lasting relationships with French universities and research centers to develop new technologies.”

Many leading French companies have come to terms with the fact that they can no longer compete with emerging economies on costs, and must focus now on added value: “To remain competitive in the long run, we must remain at the vanguard of innovation in relation to project management and engineering,” declares Antoine Bresolin, CEO of Eiffage Metal. “We are perpetually committed to engineering in steel construction. We seek the brightest engineers. I have one goal for the coming years: excellence.”

Fabio Pallavicini,
CEO, Saipem SA

France has fostered a dense network of small but competitive SMEs dedicated to oil and gas, many of which capitalize on the fact that their technologies and engineering capabilities can allow them to become market leaders in small niches. Doris Engineering is an example of a French company that built on that niche position to great effect, eventually being presented with the OTC award in 2006, perfectly illustrating France’s position as an engineering powerhouse. Nicolas Parsloe, Doris’ CEO, attributes his company’s success to its way of relentlessly seeking to unlock technological barriers. “Our philosophy has always consisted in pushing the limits forward,” he explains, “One of Doris’ fundamental characteristics is that people who work here are passionate and so we are able to take on new challenges when we believe we can address an issue that remains unsolved. Our competent staff that masters the technology to develop projects anywhere in the world remains our greatest asset.” Parsloe insists that the pool of talented engineers available in France has contributed to the company’s success. “R&D has always been at the heart of our philosophy. France is always innovative as French people are very keen on mathematics and physics and take pride in developing cutting edge-solutions. Doris boasts very bright and competent young professionals.”

Nicolas Parsloe,
CEO, Doris Engineering

NO DOMESTIC SAFETY NET

The lack of significant domestic oil and gas production means that many French companies must seek international growth without proving their concept domestically first. French companies operating in the oil and gas industry are therefore experienced in competing in foreign markets where they are not favored as natural partners of choice. Since French oil and gas players cannot rely on a domestic safety net, most of them achieve a substantial portion of their turnover internationally. Prior to earning a global reputation, French companies must build networks and overcome fierce international and local competition without boasting longstanding credentials. Several SMEs have even admitted that risk wasn’t enshrined in their culture and that they sometimes dithered too long before finally entering a market.

“We have already established subsidiaries across the globe but our main objective in years to come is to have foreign companies use our French concepts and technologies,” explains Guy Bardot, founder and CEO of Bardot Group, a mid-sized French company specialized in strategic polymer parts and subsea umbilicals, risers and flowlines (SURF). By 2020, the company aims to grow to USD 100 million based on this model. “We want to duplicate our model to every region of the world, notably the United States and the United Arab Emirates. We decided to seek industrial partnerships with companies in demand of engineering processes and recipe for polymers. We now boast partnerships in the US, Brazil, Europe and Malaysia.”

DeepEnergy – Courtesy of Technip and Jerome Retru

“In our business, we always arrive before or after a revolution. We need to be aware of that without putting ourselves in danger,” says Jean-Claude Bourdon, executive vice president of Dietswell, who recently signed two major contracts in Iraq for its particular niche service of integrated drilling and engineering services. “Even though the country was chaotic and unsafe, I found it had potential,” he says, discussing the challenges of the project. “We ran the operations from our Abu Dhabi office. The best way for us to enter the country was through inspection and technical assistance services.” Bourdon sincerely believes that these bold decisions characterize the oil and gas industry. “We now have constant activity in Abu Dhabi in the commissioning of land rigs coming either from the USA or China or their numerous launching of offshore platforms. From there, we have spread to neighboring countries like Yemen, Oman, Qatar and Iraq.”

Guy Bardot,
chairman, Bardot Group
Jean-Claude Bourdon,
executive vice president, Dietswell

Ludovic Villatte, CEO of ITP Interpipe, a global leader in the design, provision and fabrication of highly insulated pipes, is convinced that preserving his plant in France contributes to his company’s success in the long run. Several French exporting SMEs subscribe to this vision and have received positive feedback from their international clients. According to them, many players in emerging markets consider that the Made in France label constitutes a “pledge of quality,” which serves to explain the commitment of French SMEs to preserve a production facility in France. “We are committed to preserving our manufacturing facility in France because it serves as a center of progress and excellence. Our plant enables us to dispatch qualified equipment and trained engineers across the world.”

France’s historical, linguistic and cultural links to a number of African countries have provided a wealth of opportunities for French oil and gas companies. “We are also convinced that the African continent will constitute our main market of interest according to its forecasted growth levels,” reveal’s SeaOwl’s Gauthier. “A few majors used to dominate Africa. Nowadays, the advent of ambitious national players, with insatiable demands for technical assistance, has opened a considerable window of opportunity for suppliers of expertise and manpower like SeaOwl.”

Small and mid-sized French service providers rejoice every time Patrick Pouyanné expresses Total’s continued commitment to Africa, as partnering with the IOC on projects in African countries allows them to grow and build lasting partnerships with local players. Companies like Krohne, Sofregaz, Eras and SDV Logistics have long admitted that the development of their activities in Africa was the basis of their international expansion elsewhere. Several companies have built on success in Francophone Africa to gradually expand toward Anglophone and Portuguese Africa and seize opportunities in key markets like Nigeria, Angola and Mozambique. Indeed, Doris Engineering recently won an important contract in Angola, while Eiffage Metal has contributed to the OFON project in Nigeria.

SAFETY: BELIEF OR COMPLIANCE?

Cost reduction strategies have not dampened the enthusiasm for continuing to embrace safety as a core value and priority for French companies: the oil and gas industry has witnessed tragic incidents in the recent past, which French oil and gas players have sworn never to repeat, committing to a stringent set of HSE norms and standards, irrespective of size and turnover.

Pouyanné expresses the importance of safety by including it in a list of five words for the future of Total, which urges all its professionals dispatched around the world to respect its safety guidelines and recommendations. “Safety will systematically constitute a permanent key concern for Total,” he observes. “We are aware that nowadays, safety may put the future of a company at stake as we have observed after the tragic Deep Horizon accident in the Gulf of Mexico.” Total recently encountered and addressed serious safety threats in Yemen and Libya. “In Yemen, as rebel forces approached our LNG facilities, we not only cautiously evacuated our expatriates but also our local staff after having safely and orderly shutdown our operations.” Technip’s Pilenko is also keen to explain that safety is no longer compromised or dismissed at the expense of other investments and cost saving. “Safety is a critical component of our success and will never be disregarded or compromised in any economic context.”

Didier Michaud-Daniel,
CEO, Bureau Veritas

Oil and gas companies no longer seek to implement safety measures for the sake of compliance but rather because they are fully aware of the risks implied: “Customers in the past focused on safety to satisfy growing government requirements,” says Thibault Fourlegnie, general manager and EMEA operations director of Oldham, a provider of gas detection systems. “They are now pursuing the highest standards of safety to protect their staff and ensure tranquility during the course of their missions.” Fourlegnie also emphasizes the growing role of support services and maintenance in his business: “On the maintenance side, we have 45 field technicians in France and a trusted network of distributors dispatched across the world. We deliver process control and need to ensure adequate maintenance, operation, inspection and prevention around the products we deliver.”

As safety prevails as a core concern in the oil and gas industry, certification and inspection companies play a growing role in accompanying their clients’ HSE development and compliance. “QHSE is the core activity of our company,” explains Didier Michaud-Daniel, Bureau Veritas’ CEO. “Operators have unanimously expressed their commitment to continue their efforts in this field. The impact of QHSE within the deployment of these projects is undeniable and has encouraged Bureau Veritas to accompany and adapt these new trends and developments in mentalities and business philosophies.”


Half a century of drilling expertise and oilfield lodging

Entrepose Drilling was founded in 1958 as COFOR and has drilled thousands of wells worldwide. The company which belongs to the Entrepose Group, itself part of Vinci, relies on its conventional and automated modern hydraulic rigs to offer its clients a wide spread of solutions for drilling and workover applications. “We invested in the most recent generation of drilling rigs,” reveals David Richard, CEO of Entrepose Drilling. “We therefore improve safety levels via highly automated rigs. Environmentally, they have a smaller footprint and limited noise levels. We foster innovation through the type of rig we select, which in turn address environmental concerns. It is through the rig itself that Entrepose Drilling can really make a difference,” he explains.

David Richard,
CEO, Entrepose Drilling

Recently, the company has decided to leverage its oil and gas drilling experience to specialized niche segments including deep aquifer systems, deep geothermal wells and coal bed methane. “We have built extensive experience in geothermal drilling in France, and have become a leader in that aspect. We are even able to address turnkey wells,” says Richard, before admitting that like most players in the French oil and gas community, Entrepose Drilling had to seek international expansion to sustain its activity. “The market slowdown in Europe encouraged us to seek opportunities both geographically and technologically. Geographically, we are involved in West Africa, India and the Middle East.”


Bridging the gap between global solutions and local proximity

As the oil and gas industry increasingly embraces safety as a core value, certification companies have worked to get as close as possible to their clients. In this respect, DNV GL has built a subsidiary in Paris to work with French clients during the design phase of both domestic and international projects. This strategy is starting to bear fruit: “Until a few years ago, DNV GL didn’t participate in calls for tender issued by Total for classification, but three years ago, we broke this trend by winning an important classification contract on behalf of Total in Congo,” explains Anje Deschoolmeester DNV GL’s manager for oil and gas in Southern Europe, “Since then, DNV GL is regularly asked to present its services and solutions to major French operators and EPCs.”

Anje Deschoolmeester,
manager Southern Europe Oil & Gas, DNV GL

The need for coordinated solutions between subsidiaries is growing increasingly important, according to Deschoolmeester. “We are handling a project for Technip and Total in the North Sea: project management for verification is conducted from Paris, while execution falls under the umbrella of our Danish and Korean offices; risk and reliability management is coordinated between here and Oslo. Our teams must adapt and adopt the culture of every country where we operate. It is critical for us to understand and recognize the specific regulations, customs and requirements in each country.” According to Deschoolmeester, DNV GL’s French entity revolves around safety and risk management systems and reliability studies, while the global group’s competitive advantage resides in its unparalleled investments in innovation and oilfield lodging.

Emerald Oil Enters Agreement With Koch Oilfield LodgingCorporate Lodging and Emerald Oil

Months after Emerald Oil Inc.’s (EOX) Delaware Basin acquisition fell apart, the Denver E&P has entered agreements to sell working interest in the Bakken Shale as well as a possible midstream oilfield lodging joint venture, the company said Aug. 3.

Emerald said it entered a purchase and sale agreement in July with Koch Exploration Co. LLC, a subsidiary of Koch Industries Inc., totaling about $24.4 million. Proceeds will be used to repay outstanding borrowings on the company’s revolving line of credit.

Under the agreement, Koch will acquire a 30% working interest in its undeveloped southern drilling spacing units in McKenzie County, N.D., for $16.6 million. Koch Exploration separately agreed to acquire a portion of Emerald’s undeveloped oilfield lodging leasehold in Richland County, Mont., for $900,000.

Emerald and Koch also entered into a 2016 drilling agreement for two wells in southern McKenzie on two undeveloped drilling spacing units. An area of mutual interest (AMI) has been established as part of the deal so that costs leasehold and acreage acquisitions will be split evenly between the companies.

 

Oilfield Lodging Emerald Oil

Koch will reimburse Emerald for their proportionate 30% share of existing authorization of oilfield lodging expenditures (AFEs) in southern McKenzie.

NEWEST OILFIELD LODGING AND NATURAL GAS EXPORTS TO MEXICO ON THE FAST TRACK…

Just as Space X rockets may be taking off from the beaches at Boca Chica near Brownsville, natural gas exports to Mexico look to also sky rocket in the coming years with oilfield lodging. Due to changes in Mexican law in 2013 opening the electricity market to private investment, billions of dollars in contracts have been let to build power plants, electrical distribution facilities and natural gas pipelines. In turn U.S. pipeline companies and gas producers have moved to capture the lion’s share of that market. Given the fact that Texas and Gulf Coast producers have been rapidly losing their old Northeast and Midwest markets to Marcellus producers this has proven to be a timely and vital new market. The Energy Information Agency (EIA) estimates that natural gas exports to Mexico were 3% of production in April 2015 and are expected to grow to 5% by 2030. While not nearly as important as the domestic power sector to U.S. producers nonetheless it represents a good piece of business.

So just where are these projects crossing the border and linking up to Mexican pipelines? Let’s take a look at recent developments. Last year Kinder Morgan’s (KM) Sierrita gas pipeline went online carrying 1.9 Bcf/day into Mexico. The 36-inch 60-mile line runs from El Paso Natural Gas’s (owned by KM) existing south mainlines near Tucson to Sasabe, AZ before interconnecting to Mexican pipelines at the border. Estimates for gross exports to Mexico are estimated to rise to 4.6 Bcf/d by 2024 and the Sierrita will contribute a fair share of that export capacity. This presentation from Kinder Morgan contains more detailed breakdowns of system oilfield lodging gas pipeline exports to mexicocapacities.

In addition to the newly constructed oilfield lodging near the Sieritta pipeline, KM also has Texas intrastate facilities. Included in the operations of the KM Tejas system is the Morgan Border Pipeline system. Border Pipeline owns and operates an approximately 97-mile, 24-inch diameter pipeline that extends from a point of interconnection with the pipeline facilities of Pemex Gas Y Petroquimica Basica at the International Border between the United States and Mexico in Hidalgo County, Texas, to a point of interconnection with other intrastate pipeline facilities of KM Tejas located at King Ranch, Kleburg County, Texas. The pipeline has a capacity of approximately 300 million cubic feet of natural gas per day and is capable of importing this volume of Mexican gas into the United States or exporting this volume of gas to Mexico.

oilfieldlodging.com texas permian basin  pipeline to mexicoDRILLINGINFO PIPELINE LAYER MAP

TheMier-Monterrey Pipeline, also owned by KM, consists of a 95-mile natural gas pipeline that stretches from the International Border between the United States and Mexico in Starr County, Texas, to Monterrey, Mexico and can transport up to 375 million cubic feet per day. The pipeline connects to a 1,000-megawatt power plant complex and to the PEMEX natural gas transportation system.

Next up are newly announced pipelines, such as Howard Midstream Energy Partners (HEP) June 23, 2015 announcement of the Nueva Era Pipeline, an approximately 200-mile, 30-inch pipeline connecting its existing Webb County Hub to Escobedo, Nuevo Leon, Mexico, and the Mexican National Pipeline System in Monterrey. Expected to be in-service in July 2017, the Nueva Era pipeline, which will be developed in conjunction with HEP’s Mexican partner, will provide seamless transport for up to 600 mcf/day from South

Texas producers directly to end-users in Mexico. San Antonio based HEP said it expects Nueva Era transportation service rates from U.S. – Mexico border to Escobedo to be between US $0.13 and US $0.20 per mcf, subject to the shipper’s required term, level of service, and volume commitment, and pursuant to all Mexican legal requirements. HEP CEO Mike Howard made an insightful commit during the press release stating that “…When you look at the state of Texas, we have about 300,000 miles of pipe in Texas, and in all of Mexico they have about 9,000 miles of pipe. I think the prize is that there are going to be large infrastructure requirements in Mexico.”

Natural Gas Mexico Eagle Ford Shale OilField Locging . ComThe biggest proposed natural gas pipeline project in South Texas is the South Texas-TuxpanPipeline, a 42-inch diameter line that would run 497.1 miles under the Gulf of Mexico from South Texas to Tuxpan, in the state of Veracruz. The pipeline, valued at $3.1 billion, would have 2.6 Bcf/day of capacity and have interconnections with the Nueces-Brownsville and the Tuxpan-Tula pipelines. This pipeline is among the $9.8 billion in gas transport, oilfield lodging and power plant projects recently issued requests for proposals from the Federal Electricity Commission (CFE), Mexico’s state-owned electricity utility. The contract has an expected award date of December 2015 with a start date of June 2018.

In March of 2014 Energy Transfer subsidiary Houston Pipe Line Company received FERC approval to build and operate a pipeline to export or import of gas at the international boundary between Hidalgo County in Texas and the city of Reynosa in Tamaulipas state in Mexico. Houston Pipeline will use existing infrastructure and right-of-way to construct a new 24-inch pipeline from near Edinburg, TX to a new international border crossing near McAllen, TX. While the new 23 mile extension will have a design capacity of approximately 140 mcf/day, the 15 year contract with CFE calls for transportation services of 930,000 MMBtu/day.

In January of 2015 Mexico’s CFE selected a consortium of companies that includes Dallas-based Energy Transfer Partners (ETP) to construct two pipelines in West Texas. The Trans Pecos pipeline would run 143 miles from the Waha natural gas hub near the town of Pecos in Reeves County down to the border town of Presidio, where it would connect with a short 1,000 foot cross-border pipeline connecting toanother line in the Mexican town of Ojinaga. At 42 inches in diameter, it would be capable of moving 1.4 billion cubic feet of natural gas a day. Local opposition has heated up as local residents learned of the construction and while Energy Transfer has an approved T-4 permit from the Texas Railroad Commission compromise may prove difficult.

The Comanche Trail pipeline will be a 192 mile 42-inch pipeline delivering 1.1 Bcf/day, from the Wahahub to the international border at San Elizario, TX, just south of El Paso. The consortium for this project is comprised of Energy Transfer Partners, MasTec, and Carso Energy (owned by Carlos Slim, Mexico’s richest man).

The Roadrunner Gas Transmission pipeline extends from ONEOK Partners’ Wes Tex pipeline system at Coyanosa, TX west to a new international border-crossing near San Elizario, TX. The first phase of the project for 170 MMcf/d of available capacity is expected to be completed by the first quarter of 2016. The second phase, which will increase the pipeline’s

BB---fig-8 natural gas exportsavailable capacity to 570 MMcf/d, is expected to be completed by the first quarter of 2017. The third and final phase of the project is expected to be completed in 2019 and willncrease available capacity to 640 MMcf/d.

That’s three (3) existing pipelines and six (6) proposed pipelines with combined capacity of 6.5 Bcf/d      and representing capital budgets in excess of $7 billion. A lot of pipe and money in anybody’s book especially the oilfield lodging companies.

Mexican Oil Pipeline oilfieldlodging.com

Permian Basin Oilfield Lodging in Mexico

 REFERENCES AND IMAGE SOURCES:

Vice News, , Sasha Von Oldershausen, June 22, 2015.
NGI Shale Gas Daily, , Joe Fisher, June 23, 2015.
Vice News, Mexico Wants to Run a Pipeline Through West Texas, Sasha Von Oldershausen, June 22, 2015.
NGI Shale Gas Daily, Texas-Mexico Pipeline Developer Looks Forward to Gathering Mexican Gas, Too, Joe Fisher, June 23, 2015.
RBN Energy, As We Send Gas Through the Streets of Laredo, Housely Carr, June 30, 2015.
High Country News, Natural Gas Exports to Mexico are Surging, Elizabeth Shogren, July 7, 2015.
El Paso Times, Proposed construction of gas pipelines concerns San Elizario residents, Aileen B. Flores, July 12, 2015.

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Pecos Oil Field Housing Pecos Texas Hotels" href="http://oilfieldlodging.com/pecos-oil-field-housing-pecos-texas-hotels/" rel="bookmark">

Pecos Oil Field Housing Pecos Texas Hotels Week 45 of 2014 Oil Field Housing Trend Update: Currently we are having a large surge in requests from well companies service companies for housing for their oil field workers in Pecos Texas. Our typical check in right now is about 40 rooms. However in Pecos Texas there are no hotels left there and there are no man camps with availability. We have them all full. There is zero occupancy unless you go through OilfieldLodging.com and we use some of our previously reserved room blocks. As we watch this trend, I keep in mind when I've been told, by everyone in the business, to watch out for November and December's holiday slow downs. However that is not ever been our experience since 2010. Oil Field Housing and Hotel requests are growing more and more. We see more diversity such as service companies, construction companies, oil and gas drillers and now we are seeing a large influx of construction, pipeliners, and electrical infrastructure companies coming into the Permian basin looking for oil field housing. Because the nature of the business, is it hard for most frac, pressure pumping and coil tubing companies to forecast movement. In many cases they do not have the notification or the calendar organization to know when their crews are moving so we do advise, if you think your crews are moving in the next two days to seven days please call us and let us know. Time is of the essence! Please let us reserve your rooms now, otherwise they will be driving an hour or more to their drill sites in the Permian Basin western locations.

Local Office Expansion

OilfieldLodging.com‘s office expansion demonstrates a successful business model in spite of challenging economic conditions.

Oilfield Lodging Office Expansion Austin Texas

Having experienced phenomenal growth since our inception in 2012, OilfieldLodging.com is expanding and planning to continue increasing in both size and scope. We originally focused on workforce and corporate lodging for traditional sectors of the oil and gas industry such as fracking. However, we have been diversifying into other categories and exploring government, construction, technology, transportation and these moves have paid off.

Like most startups, we began small, with only two employees and a laptop. By the end of 2013, the number of personnel had increased to six, but that was only the beginning. We’ve grown by 300 percent since then and now have a full-time staff of 32. Our impressive rise was the result of giving our clients something that was sorely lacking at the time — a service that solved their accounting and tracking issues as well as their lodging problems with a focus on delivering high-quality housing at greatly reduced rates.

The oil slump couldn’t have come at a worse time; many young companies aren’t in a position to weather this type of storm. Fortunately, the drop in oil prices, along with its associated effects on producers and industry suppliers, hasn’t hit us the way it has others. Our experience and ability to negotiate rate reductions have allowed us to respond when our clients needed to lower their housing costs. “Our market share has quadrupled because we have the big data to prove our savings and now the largest oilfield service companies in the world are not only listening to what we have been telling them, they are using us.” Rod Williams-CEO

In addition, we’ve reached out to offer our cost-saving benefits to other sectors of the oil and gas industry such as pressure pumping, snubbing, wire lines and coil tubing, and we’ve been expanding into the logging, transportation, environmental and construction industries. With our proprietary worldwide housing reservations database and our past experience handling crew logistics in even the most remote areas, we also anticipate a continued need for our current services in corners of the country or the world that still suffer from a lack of sufficient workforce housing.

The need to raise their occupancy rates has prompted many hotels and crew lodging managers to ask for our help in connecting with clients and adapting their rates and services to the current environment of the industry. This explains why we’re not only still here but growing as well. We foresee a healthy future for OilfieldLodging.com as we pull through this current market condition by continuing to save our clients’ money.

oilfieldlodging.com value proposition

Workers today expect a strong work and lifestyle balance, and this is where Oilfield Lodging enters the equation. Retaining skilled, qualified and loyal employees is essential for a smooth-running oil field service company, and we can help keep these employees feeling like they are in the comforts of home.

Happy Workers Are More Productive

It’s a well-known fact that a happy work environment fosters motivated and productive workers, and the oil and gas industry is no exception. Our services can organize, plan, and oversee top living facilities for your workers that include access to computers and Wi-Fi, excellent food, and attractive accommodations wherever you need it. We’ll help you avoid an unsafe workplace where workers are tired, lonely, or unhappy. Your workers will have amenities that can include swimming pools, barbecue grills, and other recreation facilities to foster a sense of community and rest for the next day’s work.

Service You Can Trust
With our travel management software protocols, you can rest assured that your workforce will arrive with the utmost care, hospitality, cleanliness and respect. Our hotels, and workforce lodges are maintained and inspected to ensure they are in top condition. When we have a booking request, we put logic into logistics. We not only consider HSE ratings but include proximity to work site, surrounding amenities, parking space for large equipment, “no stay no pay” nightly audits and onsite check-ins and crew change management for larger crews.

Types of Lodging

You can select housing according to your needs. We specialize in high-quality hotel rooms with big discounts, workforce camps, and custom manufactured homes with four suites, each with an attached bathroom and private entrance. If camps are what you need, we create custom housing options that suit your needs. We’ll not only set you up in the United States; at Oilfieldlodging.com, we provide lodging for oil fields in many places around the world, including remote areas.

You won’t have to be in charge of making arrangements whenever your workforce needs to travel to a new site. We’ll examine the site, scout the property, and get you hotel rooms or create a camp with the best amenities available.

“You can rest easy with us in charge.”

Sleep well.

Oilfieldlodging.com Slashes Travel Costs for Global Oilfield Service Company Saving $8,000,000

oilfield services company saves millions

 

By using the services of OilfieldLodging.com, a global oilfield service company saved over $8 million from 2013 to the 2014 fiscal year. To arrive at this conclusion, an audit of lodging spending, decision making and business processes was performed. This audit revealed that money was saved in various areas, including facilities, man camps, and hotels. The lodging company was also able to reduce costs for the client with tax management, no stay no pay agreements, and eliminating long term contracts.

In the past, oil companies would coordinate with local establishments to find lodging and dining options. This often resulted in price gouging and reduced profits. By contracting lodging and logistical services, oil companies can utilize high-quality options while saving money. The global oilfield service company that saved millions of dollars in 2014 is a prime example of the effectiveness of relying on contractors for lodging and logistics. In most cases, relying on a lodging contractor can increase the profit margins of oilfield service companies. On average, the services provided by the contractor can save oilfield service companies about 25 percent of their initial costs. Many oil companies in the United States have reported that using this contractor for lodging and logistical services has saved them millions of dollars on a quarterly basis. Savings are larger as expected by scale.

OilfieldLodging.com offers all their clients both small and large, independent and public, the combined buying power of the largest oilfield service companies in the world. Combine that savings with solid tax management, superior nightly auditing, custom invoicing, and quarterly regional price evaluations and all companies will see a huge savings to their bottom line regarding travel management and crew logistics.

Oilfield Services Company Saves $8 million