Riding the business cycle is an adventure, revealing the need for ulcer medication and martinis. Several years on a downward swing often means sleepless nights, while an upward swing is all slaps on the back. One of the better aspects of the up-cycle is that many involved with the company get their due reward and profit. If an investor can stomach the downside when it shows up, there is usually plenty of time for the martinis and profit.
Nabors Industries Ltd., an international drilling and drilling services company, works worldwide to offer a full spectrum of drilling services. It works both onshore and off to drill, work-over, test and otherwise perform all activities associated with the drilling of oil and gas, including landfill properties. The company owns and operates a large range of drilling-related equipment. Among its assets are 535 land drilling rigs, approx. 750 land work-over/ rig servicing rigs, and 35 offshore rigs. The company also operates a fleet of helicopter and fixed-wing aircraft.
Where many companies operating in the oil and gas area are considered explorers and developers, Nabors Industries Ltd. actually does the work to get the job done or serviced. Horizontal drilling has become a very popular part of the domestic search for oil and gas, and the company has taken advantage of it. It has also taken advantage as companies move offshore, where the company also drills and services drilling operations.
For the most part, the company has been able to take this advantage because it has been in the business for some time. Many exploration and developers are relatively young companies and not fully versed in the actual processes required to get the product out of the ground. Nabors Industries Ltd. has been in the business since 1968 and has earned a hard-fought reputation for getting the job done. Generally, this is one on the reasons that the company works at all highly visible oil and gas sites around the world.
One might not generally think of oil and gas rigs as a commodity item, but in an arena where long lead times mean planning ahead, they certainly end up being one. If a company cannot anticipate a run-up in need for oil and gas rigs years ahead of time, they miss out on the opportunities that present themselves when companies large and small come calling. Nabors Industries Ltd. was astute enough to plan for what it saw as a coming need. As a result they have almost all of their rigs and equipment working around the world. Ultimately, this means that the company is seeing a consistent cash flow coming from its rigs and the services required to support them.
The companies that have explored and developed well sites around the world may be hoping for their wells to come in, while Nabors Industries is already reaping its rewards regardless of the outcome. In a world thirty for oil and gas, Nabors Industries is there to actually fill the glass while counting the dollars for doing it.
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