Dear customers, partners and readers,
I am pleased towelcome you to Connection magazine #10.
The Oil & Gas market is in a much better place, stabilizing after a decade of rollercoaster price cycles and uncertainty. We expect 2018 to be a good year. The industry has gotten leaner and drilling is seeking to be more efficient, based on a threshold at about $50 a barrel, with Offshore and Onshore rigs finding renewed viability.
In the wake of this new momentum, the revolution is coming from North America, with the emergence of unconventional Oil & Gas. Unconventional, with its formidable hydrocarbon reserves, has shifted the rules and equilibrium of a long established leadership in the energy market. In the North America region, the United States has become a swing producer on the worldwide market. Once considered unexploitable, unconventional hydrocarbons (tight oil and tight gas) have become accessible in unfathomable proportions. After a period of pioneering and probing, extraction has vastly improved, and is now both more productive and less wasteful. At an age of maturity, drilling entails longer laterals that require extreme torque capabilities of all OCTG equipment, to withstand the greater mechanical and physical constraints of horizontal drilling, while improving productivity.
Innovation and technical challenges are in our DNA! Vallourec endeavors to bring more performance and efficiency while increasing well integrity, wherever and whenever possible. In record time, we have developed and delivered a full offer of new, high-performance products and services to the market. Our solutions include non-standard pipes and casing, high torque VAM® connections and accessories, all supported by our renowned VAM® Field Service. We cover the whole spectrum of customer needs, from the steel mill to the rig floor, as well as expertise for installation, maintenance and repairs, with great customer proximity and intimacy throughout North America.
We also aim at providing operators with safer products, guaranteeing the integrity of their well, whilst reducing our environmental footprint with optimized supply chain and transport solutions. Vallourec has mobilized all its teams and resources, including R&D, innovation and manufacturing, to deliver safer, better and more competitive products.
Vallourec yearns to remain the most trusted partner of our customers. We hope you enjoy the many articles in Connection magazine #10, focused on unconventional Oil & Gas and great prospects for the future.