Oil Field Service News

If you drive just south of I-10 in Pascagoula, Miss., within 10 minutes you find yourself on the doorstep of VT Halter Marine, arguably one of the more diverse and active shipyards in the U.S. The company, which is a subsidiary of Vision Technologies Systems, Inc. (VTS), operates three facilities in Jackson County, Miss., and today supports about 1,600 full time employees as well as about 1,600 vendors and subcontractors. •    A pair of 250,000 barrel ATBs and a pair of 6,000 hp ATB tugs for Bouchard Transportation, a long-tenured and important client for VT Halter.

Talks that could lead to oilfield services provider Halliburton Co buying rival Baker Hughes Inc may herald increased deal-making in the energy business as companies bet on a protracted drop in oil prices, industry bankers said. Competing service companies including National Oilwell Varco Inc and Weatherford International may also be targets, bankers and lawyers said. In any deal, the incentives will be the same: consolidation would allow them to better weather the downturn and resist pressure from oil producers to slash prices. The Baker Hughes/Halliburton talks have stalled after the companies weren't able to agree on issues including price, people familiar with the matter said Friday. As oil prices fall, oil field service companies get squeezed, one industry lawyer said.

At present we are seeing lower oil prices as a function of softer demand growth in both Europe and China combined with recent output increases from OPEC, particularly Libya, together with the ongoing surge in US production, notes Douglas-Westwood in the latest 'DW Monday'. In the short-term, supply could start to be taken out of the market quite quickly if lower price levels are sustained – we have earlier noted that returns for most E&P companies have been eroded by rapidly-rising costs. This has pushed hurdle rates for new projects higher often to around $80/bbl, indeed many are described by our E&P clients as 'marginal' at $100/bbl, which means that we could start to see a major shift in oil company strategy if prices fall much further.

Oil spill equipment manufacturer Elastec brings new and sophisticated tools to a market in need of better, faster, more efficient and environmentally sound tactics. Just what the doctor ordered. Elastec/American Marine may well be the largest manufacturer of oil spill and environmental equipment in North America, but it is technology and innovation that are quickly propelling the firm to the top of the markets. With six U.S. locations, three foreign offices and a network of global dealers, ISO 9001 certified-Elastec produces a range of products that includes oil spill equipment (skimmers, containment boom, fire boom, dispersant application equipment), incinerators, vacuum systems, portable tanks, pumps and a dozen more entries.

Expected result compares with $.57 per share for the 2010 third quarter, fueled by continued strong inland marine transportation and land-based diesel engine services markets. Kirby to announce 2011 third quarter results on Wednesday, October 26, 2011, with conference call on Thursday, October 27, 2011. Kirby Corporation announced today that it expects its 2011 third quarter net earnings to exceed $.90 per share, above the top end of Kirby's earnings guidance of $.82 to $.87 per share, and substantially above 2010 third quarter earnings of $.57 per share. Kirby will address the 2011 fourth quarter and year guidance when it announces its third quarter results at 5:00 p.m. central time on Wednesday, October 26, followed by its conference call at 10:00 a.m.

The U.S. oil industry may have found its dream team with Republican presidential candidate George W. Bush's pick of Dick Cheney, former CEO of Halliburton Company, as his vice presidential running mate. American energy firms could get a break from environmental regulations and policies imposed under the Clinton-Gore administration that industry representatives claim have discouraged domestic oil production and left the United States vulnerable to foreign suppliers like OPEC. Bush's prior experience as an independent oil operator had already won him industry favor, and that popularity is likely to grow with Cheney, who headed the world's largest oil field service company, now joining the ticket.

There has been a steady stream of bad news recently in the marine press regarding the health of the oil and gas industry in the Gulf of Mexico. Much of this bad "press" is fueled by boat operators who are trying to do a "Rope-a-dope" on their competitors. That is by "talking the industry down" they are trying to convince competition that "better days" may be years out, hoping they may not be ready when the turnaround comes. All indications are that the industry will indeed drill itself out of the current malaise - sooner than later. And the indicators for such a turnaround are right in front of your face if you know where to look. In general, people who follow intensely the oil and gas industry all agree that a significant rebound is on the way.

Discussing the marine business with Captain Brian McAllister is much like sitting in a "Maritime History 101" course, in that his accumulated knowledge, experience and stories tell the tale of not only the evolution of one company, but an entire industry operating in one of the world's most dynamic ports. During his more than a quarter of a century at the helm of the family business, Captain Brian McAllister and his company — McAllister Towing and Transportation (MT&T) — have had more than their fair share of wins and losses. However, on the event of the christening of the company's new tugboat Janet M. McAllister — named for McAllister's two-year-old granddaughter…

Moody's Investors Service upgraded the senior unsecured debt ratings of Transocean Offshore, Inc. to A3 from Baa1 to reflect the significant benefits that the company will likely derive from its pending merger with Sedco Forex Holdings Limited (Sedco). The rating action ends a review of Transocean's ratings initiated on July 12, 1999 in response to the company's announcement that it had signed a definitive agreement under which Sedco, the offshore contract drilling business of Schlumberger Limited, will be spun off and combined promptly with Transocean through the issuance of approximately $3.2 billion of Transocean stock and the assumption of about $435 million of debt. The combined company will be known as Transocean Sedco Forex.