Oilfield Serv. Co. Relocating Office & 200 People from WV to PA
In early 2017, Baker Hughes (prior to GE buying them) spun off its North American shale fracking business (“pressure pumping”) into a new, standalone company called BJ Services (see 3 Parents Give Birth to New Fracking Co: BJ Services). The “new” company involved investments and assets contributed from both Goldman Sachs and CSL Capital Management, in addition to BH. BJ Services used to exist as a standalone company before it was purchased by, and merged into, Baker Hughes in 2009–for $5.5 billion. BJ remained its own separate division within BH, but then got spun out again, back into its own company. We know, a bit confusing. Here’s what you need to know. In March 2016, BH closed its BJ operation in Mill Hall (Clinton County), PA and moved it to Clarksburg (Harrison County), WV. Now the reverse is happening. BJ, the standalone company, announced it is closing the Clarksburg operation and relocating it back to Mill Hall, along with some 200 people…
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Looks like “Baker Hughes, a GE Company” will soon become just plain old “Baker Hughes” once again. This morning GE released the results of a year-long internal review. GE has its fingers in a lot of pies and wants to pull its fingers out of some of those pies. The results of the review recommend GE dump Baker Hughes (over the next 2-3 years), and also dump its healthcare division. The company will concentrate on three “complimentary” areas: aviation, power and renewable energy. The hope is that by focusing and shedding peripheral business units, the company’s financial performance, and stock price, will improve. Just last week GE was booted from the Dow Jones Industrial Average after being a component of that average for over 100 years. The company’s stock was replaced on the DJIA by Walgreens. Truly humiliating. You may recall Halliburton originally wanted to buy Baker Hughes but the Obama Justice Department blocked the deal (see 
The average worker who works for producers (i.e. drillers) in the Pennsylvania Marcellus makes among the highest average salaries of any industry in the state. Looking at six of the state’s top Marcellus drillers, the average worker made $113,610 last year! That’s an average taken from workers at CNX Resources, Range Resources, Chesapeake Energy, Southwestern Energy, EQT and Cabot Oil & Gas. We hasten to add not “all workers” but “average” or “median” workers–meaning there are people who make below that number and people who make well above that number. It also means the majority of Marcellus workers in those companies made at least $100,000 per year. Those working for oilfield services (OFS) companies like Halliburton, Baker Hughes and others didn’t fare quite as well, making an average of $52,000-$80,000 per year. Still, hey, it ain’t bad money! Here’s a look at the average wage for top Marcellus drillers and the OFS companies that serve them…
Industrial giant GE (General Electric) wooed and won the hand of Baker Hughes (BH)–the third largest oilfield services company in the world–buying/merging in Baker Hughes with GE’s Oil and Gas division in July 2017 (see 
Industrial giant GE (General Electric) wooed and won the hand of Baker Hughes (BH)–the third largest oilfield services company in the world–buying/merging in Baker Hughes with GE’s Oil and Gas division just four months ago (see 
The International (non-U.S.) Baker Hughes rig count for October 2017 was 951, up 20 from the 931 counted in September 2017, and up 31 from the 920 counted in October 2016. The U.S. rig count for October 2017 was 922, down 18 from the 940 counted in September 2017, but up 378 from the 544 counted in October 2016. Notice that we have almost as many rigs operating in the U.S. as the entire rest of the world (minus Canada). Canada’s rig count has improved a lot since earlier this year. However, Canada’s October rig count drooped a bit–204 in October (down 4 from September) but up 48 from October 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig and ran an average of 32 rigs during October, versus Ohio running 29 rigs and West Virginia running 15 rigs, the same as September…
In July, GE Oil & Gas completed its merger/buyout of oilfield services giant Baker Hughes (see 
You’ve heard of upstream, which that portion of the industry that finds and drills for natural gas and oil. You’ve heard of midstream, the pipelines and processing plants portion of the industry. And you’ve heard of downstream, which includes petrochemical plants, industrial users, and homeowners who use the stuff found and transported. But have you ever heard of “full-stream?” That would be a company that is involved, in a major way, in all three major areas of the energy business. Companies like Exxon Mobil and Shell come close, but they don’t really fit that description. They drill for oil and gas (upstream), and they have some pipelines (minimal). They do have a big presence in the downstream, with cracker plants and other petrochemical facilities. However, the first truly full-stream company is about to be born, from the merger between GE Oil & Gas and Baker Hughes. It will be a “molecule to megawatt” company. MDN friend Steven Heins, an energy and regulatory consultant and former vice president of communication for Orion Energy Systems, shares his observations about the impending merger and what it means…
During the Obama reign of terror, the world’s #2 largest oilfield services company, Halliburton, tried to buy the world’s #3 largest oilfield services company, Baker Hughes. The Obama Dept. of Justice (DOJ) killed that deal (see 
The International (non-U.S.) Baker Hughes rig count for May 2017 was 957, up 1 from the 956 counted in May 2017, and up 2 from the 955 counted in May 2016. However, the U.S. rig count for May 2017 was 893, up 40 from the 853 counted in May 2017, and up 485 from the 408 counted in May 2016. Like last month, the U.S. rig count continues to be more than double year-ago levels. Canada’s rig count continued further into the abyss in May, falling another 23 after falling 145 last month–down to 85. However, Canada’s May rig count was 43 higher than May 2016. So perhaps it’s not yet an apocalypse for our Canadian cousins. What about rig counts in the Marcellus/Utica? Although 1 net rig changed location–from WV to OH, overall the combined PA/OH/WV rig count remained the same as last month: 68 active rigs drilling…
Yesterday MDN provided an update about the fast-approaching merger/buyout of Baker Hughes by GE Oil & Gas (see 
Last October, MDN brought you the news that Baker Hughes, the world’s third largest oilfield services company, had struck a deal to combine/merge with/sell itself to GE’s oil and gas business (see 
The Baker Hughes rig count in the U.S. continued to rocket skyward in March. In January the average number of U.S. rigs was 683. In February, the count zoomed to 744, up 61 rigs in just a month. And in March, the U.S. rig count zoomed to 789, up another 45 rigs in a month. Each active rig translates into hundreds of jobs, both directly working at the rig and indirectly in services delivered to the rig and its workers. It also means more landowners will soon have royalty payments heading in their direction. When rigs are active, life is good. What about rig counts in the Marcellus/Utica? Disappointingly our region’s rig count lost a rig in March. PA lost two rigs, OH gained a rig, and WV stayed even. What does it all mean? It means that this zooming up in rig counts is happening in other locations–primarily in the Permian Basin in Texas. That is, oil rigs rushing to take advantage of an increase crude prices to a sustained $50+/barrel. While we’re happy the rig count is up, we’re not happy more it is not happening in the northeast. But honestly, without pipelines to take away an increase in production, can you blame our drillers? Once there is more takeaway capacity, you’ll see rig counts begin to climb again in our neck of the woods…