Big 4 Competitive Landscape Changing for Completion Equipment

The completion equipment competitive landscape is changing. Based on the voice of customer surveys conducted by Kimberlite International Oilfield Research from 2016 – 2022 the Big 4 suppliers exhibit changes in their competitive position.

Schlumberger’s market share, performance, customer loyalty, and competitive position have improved from 2016 to 2022. While completion equipment has historically been a challenging market segment for Schlumberger, they have consistently improved their competitive position as observed with market share growing from 16% in 2016 to 21% in 2022 and customer loyalty ratings as measured by the Net Promoter Score improving from 16% in 2016 to 37% in 2022. Although Schlumberger ranks 3rd in market share behind that of Halliburton and Baker Hughes, Schlumberger has emerged as the premium-based supplier in the market (“costs more but worth it”), particularly for downhole monitoring and exhibits the highest levels of customer loyalty for intelligent completions.

Halliburton’s market share has declined slightly from 2016 to 2022 while overall performance remains below the industry average. Pricing competitiveness has improved helping to offset performance shortcomings and position Halliburton as delivering acceptable levels of value (“get what you pay for”). Halliburton’s improved alignment of pricing strategies with performance profiles has translated into higher customer loyalty ratings as measured by the Net Promoter Score.

Baker Hughes market share, performance, and competitive position have declined from 2016 to 2022. Baker Hughes top-performing product lines include sand control pumping, subsurface safety valves, and packers where they are viewed as delivering good overall value on par with the industry norm.

Weatherford continues to underperform in the market while offering low pricing to offset performance shortcomings and position themselves as the low-price, discount provider in the market. Weatherford’s market share has declined from 10% to 8% while customer loyalty ratings have improved due to lower pricing and refocusing on a core group of customers and markets who value using a low price, discount provider.

The small to mid-tier suppliers in aggregate exhibit 16% market share and the highest levels of customer loyalty and value in the market.

Kimberlite will continue to track the competitive landscape for completion equipment including packers, sand control, downhole monitoring, intelligent completion, subsurface safety valves, sleeves, and plugs, to provide annual updates. Feel free to reach out directly to discuss further.