Emerging Technologies and Pressing Demand Shore Up Opportunities in Offshore Exploration and Production

MOUNTAIN VIEW, Calif., April 25, 2012 /PRNewswire/ -- The oil and gas industry continues to accelerate, carrying memories and repercussions of the recent past within this progressive momentum.  Organizations are compelled to face and address issues head-on to avoid catastrophic reoccurrences that could quickly become a reality without adequate and preventative mechanisms in place.  This drive toward reliability and safety in turn accelerates technological R&D efforts toward cost efficiency and interoperability due to the increasing restraints evolving in the marketplace.  Frost & Sullivan anticipates an industry focus on maturing outsourcing models, with fewer vendors and a solution-oriented approach.    

Frost & Sullivan's white paper, Technology and Service Integration Impacts the Offshore Service Industry, reviews the opportunities and challenges of offshore operators in the United States. The analysis deliberates on the virtues of new outsourcing trends as offshore operators shift from prevailing, fragmented outsourcing practices to one-stop solutions that help combat the rising costs of maintenance and new regulatory regimes. Inspection, maintenance and rehabilitation of offshore structures form a significant part of the operational expenditure of offshore operators and are some of the key areas where additional efficiencies can be derived through evolving current outsourcing practices.

"In this new environment, offshore operators are expected to seek a solution-oriented approach to their maintenance and compliance related requirements," said Frost & Sullivan Senior Consultant Chirag Rathi. "This development is likely to augur well with the vendors that differentiate themselves with the right blend of synthesized solutions and all-in-one offerings."

Frost & Sullivan believes the current need of the market is to complement existing strengths with other interconnected service offerings to present a one-stop solution for operators. Furthermore, amalgamating resources and aligning partnerships are durable recommendations in building a fortuitous future in the offshore services market.  Energy Services, a Houston-based service provider to North American energy asset owners and operators, serves as a case study in this white paper.  Through the organization's strategic alliances, technologies and services are joined to marry proactive (such as inspection, detection and compliance) and reactive (such as maintenance, repair and continuous conformance) offerings to become a turnkey solution provider for the industry.

"We viewed the offshore energy industry with the concept of aligning our growth goals with emerging technologies and vendors, within the mounting regulatory conditions," said Energy Services Chairman, President and Chief Executive Officer Tim Nesler.  "Placing our organization in the path of strategic partnerships and comprehensive delivery models enables us to continuously differentiate ourselves in the crowded offshore services market."

Energy Services has partnered with HydraTech Engineered Products, architect of the HydraWrap, a submerged pipeline repair system that utilizes carbon fiber reinforced polymer (CFRP) composite that offers verified underwater endurance, which exceeds the stability of the original pipeline infrastructure.  Energy Services has also aligned with Marine Exploration Services.  This organization's Nova Ray® remotely operated vehicle (ROV) is able to independently navigate, maintain positioning, or tow behind a watercraft, with ease-of-use features that do not require anchor deployment in rough or calm waters.  This tool also allows for shortened inspection times and reduced surface support versus traditional ROVs, significantly decreasing the need for manual inspection. 

Additionally, an essential aspect shaping offshore activities is compliance, which has become a central feature under new regulatory stipulations. Despite this, there are not many maintenance companies with an extensive legislative background currently serving the offshore market in the U.S.  The industry needs consolidation of interconnected yet disparate services, such as inspection, maintenance and detection, within the offerings of a single, integrated organization. 

To meet these regulatory needs, Energy Services formed a joint venture with RECES, LLC, resulting in Enviance Services LLC, the final partnership highlighted in this white paper.  This organization provides the instrumental lynchpin between offshore maintenance and compliance, with in-field safety and environmental consulting services.  Enviance Services provides compliance advice as well as recommendations and corrective mechanisms to mitigate non-compliance.  Through this specialized supervision, in addition to the utilization of HydraWrap and the Nova Ray ROV, regulatory accordance is maintained while preventative measures are in place to ensure safety and cost efficiency.      

If you are interested in receiving a copy of Frost & Sullivan's Technology and Service Integration Impacts the Offshore Service Industry white paper, please contact Buzz White, Executive Vice President, Energy Services at [email protected].

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

About Energy Services

Energy Services Acquisitions II, Inc. ("Energy Services") is a privately owned North American services company based in Houston, TX.  Energy Services delivers a broad range of inspection, maintenance, rehabilitation, project, and compliance services to owners and operators of energy assets in North America, with most of our present activity focused in the major oil and natural gas producing areas in the southwest United States, primarily in Texas and the Gulf of Mexico.  Our customers include pipeline owners and operators in North America as well as major integrated energy companies, independent oil and gas exploration and production companies and petrochemical companies.

Contacts:
Britni Myers
Corporate Communications – North America
Frost & Sullivan
P: 210.477.8481
F: 210.348.1003
[email protected]
http://www.frost.com

Sumner W. (Buzz) White
Executive Vice President
Energy Services
P: 832-341-9389
[email protected]
http://www.goto-es.com

SOURCE Frost & Sullivan