Big Data is radically changing how businesses makes decisions. Where intuition used to dominate, companies are now thinking carefully about the kinds of questions that come up in their work and how Big Data can help answer them. In the oil and gas business, companies often want to know where drilling and fracturing is happening so they can find markets for their services. Other companies want to get a detailed market outlook so they can determine if they need to expand or cut back on costs. Billy Bosworth, the CEO from DataStax, one of the top cloud computing companies, has a saying that “Ten years from now, when we look back on how this era of big data has evolved…We will be stunned at how uninformed we used to be when we made decisions.” This quote, now a couple years old, is still extremely relevant.
Ten Years from Now,
When We Look Back at
How This Era of Big Data Evolved…
We Will Be Stunned at How
Uniformed We Used to Be
When We Made Decisions
-Billy Bosworth, DataStax CEO (2015)
I was thinking about this recently while reading a blog post from Tom Smith at the Big Data Zone. He interviewed a couple dozen executives involved in Big Data and then shared some interesting insights. He says that companies should remember where data is coming from, and that “mixing corporate crown jewels with crap from the internet is not smart.” Curated data must be cleaned up, and there are a variety of ways of doing this. The real value of Big Data, in Mr. Smith’s view, then comes from continuously analyzing the data you have collected to search for new insights. The best things to find in the data are “simple, yet valuable” insights that are easily understood yet not available from traditional data processing.
Taking The Next Steps
The recommendations from Mr. Smith are very much in line with what we do at Primary Vision. The “jewels” of our data sets are collected from a variety of target sources and no two databases are the same. While the raw data might be useful to some, the process to which we validate this data is what separates us from the competition. This cleansing process requires two important keys: time and customer feedback. This investment is an important one, one that will make you better at your job and ultimately your company more profitable so make sure everyone is on the same page commitment-wise. you cannot leverage big data unless you’re willing to commit time and feedback to your provider. if you take anything from this blog, its that last sentence.
Make Our Big Data Work For You
Rarely we get clients who just want a simple output. They come to us for useful intelligence about the fracturing marketplace in North America. We use our data sets to produce analysis in a format that can be readily used. With your help and time, we can uncover your jewels to help you make better actionable decisions.
The most recent offering from us at Primary Vision is the Frac Spread Count Report, which offers both weekly updates on projected activity and access to our historical data. Customers can get the information in top-line charts that can be easily digested or through the reams of more granular data that we also supply. You can subscribe to our report at www.fracspreadcount.com. You can also contact at email@example.com for more information or a demonstration on how our products can help your business.
Every company treated the recent downturn in oil prices differently. For Halliburton, one of the top oil and gas service companies in the world, the strategy was to gather up market share at the expense of profits. That strategy seems to have been executed. Halliburton released its financial results for the Fourth Quarter of 2016 on January 23, and the company announced a staggering operating loss of $6.8 billion. The company did gain market share, but it seems to have grown tired of hemorrhaging cash. It has started increasing its prices in hopes of squeezing profits from the market share it has so painfully acquired. The early signs are good. In fact, the company announced that it returned to operating profitability in North America in the Fourth Quarter of 2016. With completions on the comeback, this is a HUGE STORY to CONTINUE FOLLOWING.
Time to Raise Rates?
In his Fourth Quarter earnings call, Halliburton CEO Dave Lesar made clear that the company hopes to raise prices on its customers in the coming months. We have heard the company is tired of subsidizing operators, and it is rumored that in key basins the target price increases will be as high as 40%. Mr. Lesnar said on the call that towards the end of 2016, Halliburton made a strategic decision to stop chasing market share at the expense of profits.
U.S. Frac Spread Count for HALLIBURTON
Customers Looking Elsewhere
Halliburton has the massive scale, experience, and assets in North American operations to weather a price battle. One of its top competitors in North America, Schlumberger, reported a net loss of $204 million in the Fourth Quarter, and it reported a desire to raise prices as well. One of Halliburton’s other leading competitors (and former proposed merger partner), Baker Hughes, spun off its pressure pumping division into a new private company called BJ Services and then suffered a massive loss of $417mm in the Fourth Quarter of 2016 as it finalizes its merger with GE Oil & Gas. It is hard to predict where these companies are headed after these transactions. The changing price dynamics could open some doors for smaller service companies, and we have heard many customers are feverishly looking into low-price alternatives. This push for understanding pressure pumper activity has been coined “Operator Fever” here at Primary Vision.
Primary Vision Closely tracks Frac Demand
Keeping up with a dynamic market can be a challenge, but Primary Vision has developed a proprietary method for channeling the latest public and private data into models that approximate the real-time state of the market. Our extensive data on hydraulic fracturing in the United States and Alberta, Canada is now available for subscription via A quarterly report or data subscription. To learn more, visit www.fracspreadcount.com or contact us at firstname.lastname@example.org.