Introduction

Oil and gas extracted from wells scattered across oceans worldwide might not flow without the essential services of Superior Energy Services (Superior). This Texas-based company provides solutions vital to completing and maintaining well productivity over the life of offshore drilling projects. Superior leverages advances in robotics and remote monitoring to conduct essential tasks including well plugging, abandonment services and supporting subsea infrastructure installation deep beneath the waves.

However, Superior has confronted immense market volatility as oil prices swing wildly in recent decades impacting offshore production activity. The company was forced to file for bankruptcy protection during the 2020 oil market crash exacerbated by the COVID-19 pandemic. Superior has worked to restructure itself to manage through oil and gas cyclicality. But some critics argue companies like Superior with heavy exposure to fossil fuel industries risk falling behind amid energy transitions.

This article explores the crucial niche Superior Energy Services occupies in offshore oil and gas extraction. Reviewing this company’s role shows how vast networks of remote underwater infrastructure and expertise sustain offshore production that supplies crucial energy supplies to the world.

Company Background

Superior Energy Services was formed in 1996 through the merger of two major oilfield services companies with specialties in pressure pumping and well intervention solutions. With headquarters in Houston and over 5,500 employees worldwide, Superior expanded dramatically via acquisitions of various oilfield services firms in the 2000s.

Superior went public in 2005 as its tools and technologies proved increasingly vital for the booming deepwater offshore drilling sector. Record-setting extended reach and ultra-deepwater wells characterizing projects offshore Brazil and Africa at the time relied extensively on Superior’s well completion tools and solutions.

But cyclic energy market volatility hit Superior hard. During the 2014-16 oil downturn, Superior’s revenues plunged over 60% in a single year forcing mass layoffs and restructuring. Despite a modest rebound when oil prices rose again, Superior’s reliance on drilling activity and exploration left it vulnerable when COVID-19 decimated 2020 energy demand. Over $1.3 billion in debt forced Superior to file Chapter 11 bankruptcy in late 2020.

Since reorganizing, Superior has worked to pivot offerings to offshore production maintenance, decommissioning, inspection services and other later well-life stage solutions less vulnerable to oil price swings. But 80% of revenues still flow from drilling contractors and oil/gas supermajors. This reliance on ever-uncertain exploration exposes inherent risks of Superior’s offshore services model.

Essential Well Solutions

Delivering reliable access to underground oil and gas deposits relies on countless supporting services handling distinct technical challenges arising as wells get drilled, completed then managed over decades of production. Superior Energy occupies crucial niches conducting highly complex downhole well construction and maintenance.

Key Superior offerings that enable offshore wells worldwide include:

• Cementing Equipment & Services – Critical for casing wellbores with cement that protects integrity over the life of wells.
• Well Plugging & Abandonment Tools – Safely seals off depleted wells according to strict protocols.
• Coiled Tubing Equipment – Deploys flexible tubing deep into existing wells for maintenance, flow enhancements and extending reach of drilling tools.
• Wellhead Plugs & Pressure Control Equipment – Essential valves and blowout preventer equipment for flow regulation and emergency shutdowns.
• Subsea Support Services – Robotics, tooling and personnel supporting subsea drilling and infrastructure installation.

This array of services tackles some of the most dangerous and expensive steps involved in extracting resources buried thousands of feet beneath the seafloor. As offshore projects test the boundaries of depth and pressure that can be safely managed for hydrocarbon extraction, Superior’s well completion and preservation offerings only grow more indispensable.

Relationships Across Offshore Industries

Delivering bespoke solutions for niche well construction and maintenance challenges means Superior serves most major firms across offshore drilling, equipment manufacturing and services sectors. Superior retains close partnerships with leading contractors like Diamond Offshore, Valaris and Noble Corporation that operate advanced floating drill rigs contracted to supermajors like Shell and TotalEnergies developing frontier offshore reserves.

At the same time, oilfield services giants that otherwise compete fiercely for contracts like Schlumberger, Baker Hughes and Halliburton utilize Superior’s specialized well tooling supporting integrated projects. Superior also supplies major equipment manufacturers like National Oilwell Varco, Aker Solutions and Hunting Energy fabricating everything from massive blowout preventers to drill bits and casings used in thousands of offshore wells.

This interdependence underscores Superior’s indirect role upholding vast production from waters offshore Saudi Arabia, Brazil, Norway and beyond that moves global energy markets daily. While risks facing oil and gas producers garner headlines, overlooked equipment/services firms like Superior form crucial foundation upholding output flowing across subsea infrastructure that societies and entire economies directly rely upon.

Path Ahead

Superior exited bankruptcy with reduced debt and a leaner profile targeting production/decommissioning services less vulnerable to oil market volatility. But hydrocarbon extraction still comprises over three-fourths of revenues. Like offshore drillers, Superior remains hostage to investment and activity fluctuations whether projects get approved as energy transitions accelerate.

Some shareholders argue Superior should have exploited its subsurface expertise to expand faster into geothermal, carbon capture, offshore wind, or potential mining opportunities on the seafloor. Pivoting beyond oil and gas dependence raises risks but may better align with shifting politics and investor pressures. This debate mirrors ones occurring across related offshore-focused firms.

Ultimately though, global energy demand still heavily relies on over 25% of oil supplies flowing from offshore deposits. Until production from these tens of thousands of remote underwater wells gets phased out over the coming decades, complex service networks upholding output will remain essential. That precarious reality keeps offshore-focused services groups like Superior Energy caught between strained economics but also entrenched societal dependence.

Conclusion

Behind the scenes, Superior Energy Services remains instrumental upholding countless remote assets pumping millions of barrels of oil and gas daily from seabed reservoirs worldwide. Its well completion tools and recovery solutions help make frontier offshore production possible. Superior’s specialized teams and niche equipment tackle some of the most technically formidable and dangerous steps in offshore extraction far beneath the waves. That role secures vital energy supplies. But reliance on offshore drilling also exposes Superior and its peers to oil industry volatility intensifying pressures to diversify before the next crisis hits.