Introduction
Nabors Industries is one of the largest land drilling contractors in the world. The company provides drilling rigs, technologies, and related services for land and offshore oil and gas exploration globally. Headquartered in Houston, Texas, Nabors has operations spread across numerous oil and gas basins in over 15 countries. With a long history spanning over 100 years, Nabors has built a leading position in the well drilling and workover market. This article provides an overview of Nabors Industries, its key operations, technologies, financial performance and outlook.
History
Nabors traces its origin back to 1952 when it was incorporated as Anglo Energy Ltd. The company acquired Nabors Drilling USA in the late 1980s which marked its entry into oil & gas land drilling services.
In the 1990s and 2000s, Nabors grew substantially via acquisitions to build capabilities across geographies and services. Some key deals include:
- Acquired Superior Well Services in 1996 expanding US Lower 48 operations
- Bought Pool Energy Services in 1999 entering the gas well services market
- Acquired Ryan Energy Technologies in 2006 adding directional drilling expertise
- Purchased Superior Supply and Superior Energy expanding workover rig fleet
Today Nabors owns around 400 land drilling rigs making it the largest land driller globally. The company also provides offshore platform workover and drilling rigs. Nabors employs over 15,000 people and generates annual revenues of approximately $3 billion.
Key Operations
Nabors operates two main business segments:
- Drilling Solutions – Operates land drilling rigs for oil and gas customers across global markets like US, Canada, Argentina, Saudi Arabia and Kuwait. Highly automated MODS rigor provide advanced drilling capabilities.
- Technology Solutions – Offers drilling software, real-time data, control systems and equipment. Key technologies include ROCKit® directional drilling, RigCloudTM and other analytical applications.
Additionally, Nabors provides wellbore placement solutions, performance drilling tools, tubular running services and well control equipment. Nabors’ services cover the entire oil & gas well drilling life cycle.
Technologies
Nabors invests significantly in developing proprietary technologies focused on automation, drilling performance, optimization and safety. Some key innovations include:
- ROCKit – Advanced steerable drilling system for precise wellbore placement
- CANRIG – Drilling automation and robotics control system
- RigCloud – Cloud-based analytics and reporting platform
- NavRacer – Enhanced trajectory control technology
- Casing running tools – To enhance integrity in well construction
These technologies provide a competitive edge to Nabors and support the company in offering innovative drilling solutions.
Financial Performance
Nabors revenues and earnings declined sharply during the industry downturn of 2014-16. While financials have stabilized since 2018, Nabors continues reporting losses due to a leveraged balance sheet and impairments.
Revenues were $3.3 billion in 2021 compared to $2.9 billion in 2020. But the net loss widened from $394 million to $497 million over the same period. The company has been focused on reducing debt, improving returns and cost management.
Nabors aims to drive higher margins through new contracts, increasing activity in key markets, uptake of its advanced rigs and integrated services adoption. The sale of non-core assets also provides capital to strengthen its position.
Future Outlook
With recovering oil prices and demand environment, Nabors sees growth opportunities as E&P companies increase drilling budgets. Nabors expects to benefit from its operational leverage, leading rig fleet and portfolio of technologies.
Key focus areas going forward include:
- Growing high margin operating activities in core markets
- Continued development of advanced digital, automation and drilling solutions
- Leveraging relationships with national oil companies like Saudi Aramco and ADNOC
- Expanding specialty rigs and next-generation technologies
While risks remain around market volatility, Nabors seems well positioned to navigate industry cycles leveraging its scale, leadership and innovation capabilities.
Conclusion
As one of the largest land drilling services providers globally, Nabors Industries stands to benefit from increased oilfield activity and higher upstream spending. Despite near-term challenges impacting profitability, Nabors has transformed operationally to drive performance. Its technological strengths provide a competitive advantage. With drilling activity poised to grow, Nabors looks ready to deliver improved financial results.