Thanks for sharing your knowledge of the industry. One question:
> The contractor/service companies (Halliburton, Schlumberger, BakerHughes/GE, Transocean, Nabors etc..) are probably the only ones in the industry that could successfully develop and use these types of automation technologies
> The big oil companies ... simply don't have the ability to effectively produce/innovate internally as a smaller company would.
Aren't the contractor/service companies large? Why are they more innovative than big oil?
They are large, but not as big as the Super Major Oil Companies (Exxon, Chevron, Shell, BP etc..).
Oil Companies think large and long term (10-50 yr cycles), meaning their payback/revenue period is
also longer, and as a result their business strategy/forecasting is longer.
The cycle usually starts with a lot of upfront Capital to build up the capability to find/drill/produce/refine/sell the oil.
Once they have that capability, then the focus is on producing oil in the cheapest most efficient way possible over the 10-50 yr life
of the oil field.
Compare this to the services/contractor companies, whose work is mainly fixed/short-term contract based, as a result their business
strategy forecasting is alot shorter. It is also more competitive, so they have to constantly think up new and better services
to provide the oil companies, while also trying to reduce their own operating expense to extract as much margin as possible.
So being smaller, with shorter business cycles, and more focus on doing things better, smarter, cheaper, the result is that
the service/contractor companies really have more opportunity and an inherent need to innovate, simply as a way to survive and
make profit.
Slightly off "automation" topic - but their are some pretty cool examples of service/contractor
companies using/leveraging technology to do things better ( specifically in the drilling space), which
the oil companies benefit from, but could never have developed themselves in my opinion:
> The contractor/service companies (Halliburton, Schlumberger, BakerHughes/GE, Transocean, Nabors etc..) are probably the only ones in the industry that could successfully develop and use these types of automation technologies
> The big oil companies ... simply don't have the ability to effectively produce/innovate internally as a smaller company would.
Aren't the contractor/service companies large? Why are they more innovative than big oil?