What new initiatives is Cameronâ€™s surface division currently involved in?
HALVERSON: One of our biggest new initiatives is our well site initiative. As we evaluated our footprint on the well site, we realized Cameron had an awesome opportunity to leverage our platform of products and services and add value to our customers. It all starts at the wellhead, and includes completion operations with fracking through our frac manifolds, Â flowback and well test services, process systems with numerous valves, measurement, and compression. That is an initiative we are really excited about.
What is the surface divisionâ€™s contribution to Cameron as a whole?
HALVERSON: We are very excited about Surface Systems. They are a very important part of Cameron. One of Cameronâ€™s strengths is its broad portfolio. We participate in subsea, drilling systems, process systems, valves and measurement, surface systems, and compression. It is a very important part of our business and we are very excited about it.
In what ways are we seeing technological advancement in wellheads, trees, and other components of the surface division?
HALVERSON: In terms of the Surface Systems technology, it is not easy to identify the silver bullet that truly differentiates. We have always had the perception that we were a leader in the industry. About 5 years ago, we accepted that our leadership in sealing technology is our core strength. After studying how the industry is evolving, our goal was to widen the existing gap through self-assessment, identify gaps, and address them through new product development. We are confident today that our sealing technology position clearly differentiates us. That positioned us for a lot of the success we are having today.
In an increasingly regulated environment, are you seeing more business opportunities in surface technologies?
HALVERSON: It is all about operational integrity in todayâ€™s environment. The wells are getting deeper, hotter, and higher pressures are being encountered. There is a lot of focus on the offshore market in terms of integrity and operational safety. Considering the billions of dollars being invested in the onshore unconventional areas, operators drilling thousands of wells in environmentally sensitive areas, the integrity of those operations is just as important. As an industry, we can lose our license to operate if we do not execute with integrity.
We are seeing a shift to automation and mechanization throughout the industry. Is this the case in the surface industry as well?
HALVERSON: We are seeing a shift to automation and mechanization in the surface industry too. The North Sea comes to mind as our customers look to integrate the monitoring of pressure, temperature and predictive maintenance intelligently.
In terms of future markets and products, I would say the Arctic is the next frontier and that is a big focus of ours as we continue to differentiate ourselves through sealing technology.
How competitive is the surface industry in todayâ€™s market?
HALVERSON: Our competitors keep us very focused; we canâ€™t let our guard down. Again, our customers are investing billions in energy projects. The shale plays require a tremendous amount of capital. I think some of the smaller players will have difficulty investing the required capital. The game has changed, our customers cannot afford to sacrifice quality or experience nonproductive time. It is not a marketplace for the small player.
What is your outlook for the surface industry?
HALVERSON: In terms of future markets and products, I would say the Arctic is the next frontier and that is a big focus of ours as we continue to differentiate ourselves through sealing technology.