Commentary by Espen Sørbø
It’s been some time since I’ve had the opportunity to write one of our monthly website articles. I always value the opportunity to provide business updates to our customers, stakeholders, and partners, and I believe that this is an ideal platform in which to do so.
Due to a recent back injury, my time in the office has been limited during the last few weeks. While I’ve been working throughout, it has given me some time to step back and reflect on the efforts of the team during the first five months of 2022. Their desire, expertise and customer-first approach has shone through, as it always does.
You may have seen that we attended OTC Asia and OTC Houston, and we look forward to developing the connections we made at both. With increased opportunities to discuss our offering, paired with planned operational and strategic business announcements, we have entered the second quarter of this year with a renewed confidence.
For us, it would be safe to say that we have weathered the storm during the pandemic and are now fully concentrating on building momentum. Most importantly for me, this has seen an increase in new business leads and activity across multiple regions.
Drilling demands look set to continue
While the sector has seen a marginal reduction in exploration and production, drilling activity has continued at pace across multiple regions. From the conversations we are having, the market recognizes the importance of downhole tools, including our suite of products, and this is particularly true within challenging deepwater conditions and mature wells. With increased completion automation also taking place within the sector, we expect this demand to grow over the next few years.
In a specific business context, we have worked hard to deliver automated solutions to the completion market, improving safety and efficiency, while supporting digital operations. We remain committed to being the holding force in downhole technology, focusing our efforts on driving forward new and innovative products that meet the needs of the sector. This stance has helped us respond quickly to market requirements and supported our growth. To support this further, we have also taken the strategic decision to enhance and increase our global sales offering this year. Ace Oil Tools was not built with the intention to only focus on one region, and this will remain the case over the course of this year and beyond. We look forward to appointing and announcing our new recruits soon to deliver solutions for new markets.
Activity across several regions will support growth
From an operational perspective, an increased focus within Asian markets is beginning to deliver results. We expect this to continue during the next few months with several installation announcements planned before the end of the year. While Asia is one key area where we anticipate an increase in activity, the Americas is also a region where we have increased our focus since the beginning of the year. We anticipate the announcement of formal activity soon. It is of course pleasing to see the results from our teams’ hard work in these areas, and I strongly believe that we have much more to come.
It has also been rewarding for me to see an increased interest and demand across the wide range of our product portfolio, not least of all our Ace Splice Clamp.
Its ability to be placed anywhere along the pipe provides a more cost effective and versatile alternative to traditional solutions. We are in discussions with a large operator for the provision of multiple Splice Clamps, with activity at an advanced stage.
Building success around innovation
While I have approached this year with a renewed sense of confidence and buoyancy, we all know the mercurial nature of the oil and gas industry. We will never be complacent, and our ‘Ace Approach’ will always see innovation sit at the heart of everything we do.
By innovating, we can ensure that we always meet the requirements of an ever-changing sector. I take great confidence that if a unique challenge exists, the team will work directly with our clients to tailor solutions to meet their needs.
This year has already seen several strategic and operational announcements, with much more to come. The entire team carry a cautious optimism of what lies ahead and by working as a team, we will continue to navigate the challenges that may lie ahead. We will continue to deliver success as we do so.