Archive for August, 2012

Romney Plan ‘Could Be Positive’ for Oil Services, Drilling Cos

Posted in Uncategorized on August 27, 2012 by amandarandjtech
Originaly article found here
 
by  Karen Boman
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Rigzone Staff

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Friday, August 24, 2012

 
 

 
Romney Plan 'Could Be Positive' for Oil Services, Drilling Cos

Republican Presidential nominee Mitt Romney’s proposed energy plan could be positive for the oil services and drilling industry, with its goals of streamlining and improving the permitting process, opening up new areas for drilling and boosting overall drilling activity, according to a recent research note from Barclays Capital.

Seismic companies and eventually offshore drillers could benefit from Romney’s plan to open acreage offshore Virginia and the Carolinas for exploration, Barclays analyst James C. West said in the Aug. 24 research note.

Barclays views as favorable Romney’s plan for approving permits for seismic surveys to “immediately update decades-old information”, as well Romney’s call for collaboration with Canada and Mexico on geological data and requiring onshore domestic geological and geophysical data to be shared with the Interior Department.

“We view recently enacted and forthcoming regulations as supportive for stimulating offshore activity in light of the heightened safety conscious post-Macondo world, and see little scope for these to be overtuned regardless of the election outcome,” said West, referencing an Aug. 21 research note.

In the Aug. 21 note, Barclays analysts said they expected high-spec equipment makers and drillers to benefit from recent regulatory developments, such as the Bureau of Safety and Environmental Enforcement (BSEE) issuing its final drilling safety rule.

The final drilling largely cleans up the interim rule through minor edits, with minimal additions or material changes, noted West. The rule also removes language stating operators “must” adhere to certain American Petroleum Institute (API) suggestions, providing greater flexibility for interpretation and limiting adverse unintended operational consequences.

“We think this update will lead to operational improvements in the U.S. Gulf of Mexico and less back and forth between regulators and operators,” West said.

Barclays believes industry will keep moving forward with the implementation of its own set of best practices and standards for blowout preventers, even if BSEE misses the cut-off date for issuing a proposed rule this year.

Romney’s plan to empower states to oversee energy production on federal lands – and including language for all-around increased state control – could elevate the fracking debate in the general election and, if Romney won the presidential election, would help quell questions surrounding hydraulic fracturing being regulated by the U.S. Environmental Protection Agency, West said.

Two energy industry groups, the American Petroleum Institute (API) and the Western Gas Alliance (WEA) on Thursday applauded the plan.

API President and CEO Jack Gerard on Thursday said proposals such as Romney’s that promote the safe production of more domestic energy are critical to the nation’s economic future, providing economic stimulus and job creation.

“The proposals released [Thursday] by the governor will assist in encouraging that public conservation on how more North American made energy can be an economic game changer,” Gerard said in a statement.

Gerard pointed to results from a recent API poll that showed more than 70 percent of U.S. voters favor increased access to U.S. oil and gas resources, believing it will lead to more U.S. jobs and lower energy costs.

Denver-based WEA applauded the plan, saying that Gov. Romney’s plan “recognizes that empowering states, rather than imposing a one-size-fits-all government approach, is the right way to increase American energy, create jobs, and grow the economy” said Kathleen Sgamma, vice president of government & public affairs for WEA.

“By empowering states and modernizing bureaucratic processes, our nation can unlock energy resources on non-park, non-wilderness federal lands while achieving a better balance between economic growth and environmental protection,” said Sgamma.

T. Boone Pickens told CBSNews on Thursday that he was disappointed that Romney didn’t mention natural gas, noting that the United States has more natural gas than any other country in the world.

While Romney’s proposed energy plan mimics efforts in Congress, the fact that Romney has tried to set tangible goals by specific dates sets it apart from other initiatives. However, it may very well be more talk than anything else, a trend also seen in Congress, said Andrew Schrage, co-owner of the financial website Money Crashers.

Schrage notes that Romney’s promises of adding 3 million jobs, significantly reducing the unemployment rate and increasing the U.S. economy by approximately $500 billion, are long-term goals at best.

Romney’s claim that opening government lands for drilling would result in trillions of dollars in revenue contradicts a recent report from the Congressional Budget Office that the revenues created by more access to federal lands would be closer to $7 billion.

Romney’s plan to reduce government regulation should be easy to implement.

“In a nut shell, I think the general basics behind Romney’s politics can be implemented,” Schrage commented. “I’m just not quite sure they’ll yield the lofty goals he’s currently touting.”

The proposed plan can only succeed when combined with some serious energy conservation on the part of Americans, something Romney has not yet discussed.

“And of course, his chance of success in implementing his energy policy also highly depends on who controls the House of Representatives and the Senate,” Schrage noted.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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New Website up and running

Posted in Electricians, Oil Drilling with tags , , , , on August 20, 2012 by amandarandjtech

R and J Technical Services is proud to announce the launch of our new website.  We’ve re-vamped our page to highlight our operations and employment opportunties. Take a minute to see the click on our new additions and find out more information on our company.  www.PowerProsUSA.com

National Oilwell to Acquire Robbins & Myers for $2.5B

Posted in Electricians, Gas Industry with tags , , , , on August 10, 2012 by amandarandjtech
by  Karen Boman

Rigzone Staff

Thursday, August 09, 2012

Original article found here

Houston-based oilfield service company National Oilwell Varco Inc. (NOV) will acquire Robbins & Myers in an all-cash transaction valued at approximately $2.5 billion, NOV said Thursday.

The combination of NOV and Robbins & Myers’ manufacturing infrastructure and portfolios of technology will allow NOV to further advance its presence in the oil and gas markets it services, NOV Chairman, President and CEO Pete Miller said in a statement on Thursday.

“Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry,” Miller said. “I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.”

The transaction will allow Willis, Texas-based Robbins & Myers “to join forces with an industry leader that will enable its business segments to fully capitalize on their respective strategies, enhance leadership positions in niche applications, and execute growth plans at a faster pace,” said Pete Wallace, president and chief executive officer of Robbins & Myers, in a statement Thursday.

The agreement calls for Robbins & Myers’ shareholders to receive $60/share in cash in return for each of the approximately 42.4 million shares outstanding. The acquisition is expected to close in the fourth quarter of calendar year 2012.

The deal is the latest in a series of acquisitions made by NOV this year as the company seeks to expand its product offering and customer base.

In April of this year, NOV announced an agreement to acquire Schlumberger Limited’s Wilson distribution business segment. NOV completed that acquisition in May.

NOV also unveiled plans to acquire CE Franklin, a Canadian supplier of products and services to the energy industry, for CAD$240 million. Schlumberger was the largest shareholder of CE Franklin.

In February, Subsea 7 and NKT Holding agreed to sell their NKT Flexibles joint venture to NOV for $672 million.

GHS Research sees NOV’s acquisition of Robbins & Myers as positive for both parties, with Robbins & Myers shareholders getting a respectable takeout price in an all-cash deal, GHS analyst Brian Uhlmer said in a research note Thursday.

The agreement for $60/share is a 28 percent premium to Robbins & Myers closing price on Aug. 8 and an approximately 12 percent premium to its 52-week high.

NOV will get the Robbins & Myers business for less than nine times earnings before interest, taxes, depreciation and amortization, but likely even less as it shaves $50 million to $75 million out of the cost structure.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.