GE Oil & Gas seeking both organic and inorganic growth
BY PRAMOD KULKARNI
FLORENCE – Following up on General Electric CEO’s optimistic view of the global economy and the growing role of the oil and gas industry, GE Oil & Gas President & CEO Dan Heintzelman said the company is investing in both organic and inorganic growth and expects to double its technology spend in the oil and gas segment over the next two to three years.
Heintzelman made his announcement at a press conference held at the company’s annual meeting here in Florence. Joining Heintzelman at the media event were Eric Gebhart, VP Engineering, and Frederic Riberas, VP and CFO.
GE entered the oil and gas business segment in 1994 through its acquisition of Nuovo Pignone, a turbomachinery manufacturer. Over the next 20 years, GE has acquired other oilfield giants such as Hydril, Vetco Gray and Wellstream to develop a strong position in equipment manufacturing and drilling and production segments. GE Oil & Gas revenue in 2012 was $15.2 billion with 30,000 employees working in 100 countries around the world.
Asked if GE intends to enter the exploration sector of the oil and gas industry, Heintzleman said “We’re a technology development with strength in equipment manufacturing. But Jeffrey Immelt is supportive of our growth strategy. We intend to grow by leveraging our technology innovations in aviation and healthcare to the oil and gas industry.”
GE is planning to announce plans to establish an R&D center specifically for the oil and gas industry during the first quarter of 2013. The company currently operates R&D centers in Niskayuna, U.S.; Munich, Germany; Rio de Janeiro, Brazil; Shanghai, China; and Bangalore, India.
As an example of GE’s technology innovation, Gebhart explained how the company reduced the footprint and weight by 20% of its high-speed compressor for offshore installations by eliminating both the lube box and the gear box.
GE’s annual meeting in Florence continues until Tuesday, January 29.