By Dave Tucker
Chief Operating Officer, VetcoGray

I officially joined the Oil & Gas team in January to oversee the VetcoGray integration and it's been an incredible journey. We spent the first six weeks planning for February 23 and we are now more than 90 days into a very important relationship.

And that's what it is – a relationship. Sure, it's big business, but we're also talking about the lives and careers of 10,000 hard-working people inside this new organization. All our employees now have more professional growth opportunities in their disciplines as well as exploration opportunities in new areas. There are more skills and tools available. Everyone can benefit from this new situation – so we're making sure everything is done right.

We're spending quality time getting to know the people – our new colleagues and customers. I've personally been around the world a few times on this one. Claudi Santiago's team of 75 people visited 23 VetcoGray sites and together we've had round-table discussions with about 80% of VetcoGray people worldwide.

We've ironed out what our operating goals should be and how well aligned we are to work together moving forward. The road map is in place. We have team leaders in all areas evaluating Good Better & Best practices from both legacy businesses. Synergy plans are in progress for product development, engineering and manufacturing. We're all learning from each other and the result is going to be some powerful stuff for the oil and gas industry.

The new agenda

Some of our other legacy businesses, such as Gemini, PII, Rotoflow and AC Compressor have all gone down similar evolutionary paths. GE learned long ago that there is a crucial turning point from successful multi-million-dollar strategies into multi-billion-dollar, broad-platform strategies – it is the point at which you change the game. The pooled strengths of GE Oil & Gas and VetcoGray have done just that.

We're bringing the massive Oil & Gas technology base to work for VetcoGray along with proven expertise in lean manufacturing, project management and fulfillment. We're combining the most advanced knowledge in control systems, material sciences, separation technologies, and there's a lot of opportunity to leverage our high-pressure and temperature science – which is a critical need in the industry right now as offshore production is being held back by deep-water limitations. But that's all about to change.

Materials weight and strength also become key issues as production moves farther from shore. With new materials from GE composites, combined with VetcoGray technologies in connectors, we are in a unique position to design and build equipment that people have only dreamed of before.

Not only are we changing the game with our products but, more importantly, with a re-defined focus on service – in depth, breadth and quality. VetcoGray products and customers will benefit from GE's extensive testing and repair facilities, as well as our remote monitoring and diagnostics capabilities. Another example is the sheer number of multi-discipline service teams we now have around the globe. No region or customer will be without.

The perfect combination

The melding of VetcoGray with GE Oil & Gas makes perfect sense for the industry. Like GE, VetcoGray has always focused on advancing technologies and service throughout its 100-year history. Most of our readers know what GE Oil & Gas brings to the equation, while VetcoGray's strengths aren't quite as familiar, so here are just a few examples of the company's experience that is now leading to some very exciting new opportunities.

For instance, VetcoGray was the first company to introduce drilling technology capable of 30,000 psi – that was on land in Mississippi in 1966. Our current surface drilling products are also rated for 450°F, while our subsea drilling systems are rated as high as 20,000 psi and 350°F. As the industry pushes into new greenfield environments, especially those offshore, temperature and pressure extremes will be encountered, separately and together. Having equipment that can handle these extremes will make the difference between extracting the resources and not.

VetcoGray is also widely heralded for having the industry standard and best wellheads. Its metal-to-metal sealing technology was launched in 1937 and is still far superior to common elastomer seals which break down in extreme conditions and jeopardize safety and productivity. The NASA shuttle program has even contacted VetcoGray for its expertise in sealing technologies.

Our drilling risers and connector systems are also industry standards in offshore environments. Tensioners and tendons are critical for securing TLPs and spars – massive shock absorbers for keeping the structures tied down and stable in rough sea conditions. VetcoGray's systems have held in hundred-year storms – our installations in the Gulf of Mexico even held fast during Hurricane Katrina.

Subsea compression, separation and boosting will be the next revolution. Imagine being able to process at the seabed and re-inject unwanted hydrocarbons without having to move fluids to the surface. The value will be literally astounding. VetcoGray is leading the way – its Troll project in the North Sea was the first successful application of seabed separation (of oil, gas and water) and the project has been operating now for six years. The future will include compression and boosting – and the new GE Oil & Gas, with VetcoGray in the fold, has what it takes to make that happen too.

The new horizon

Customers are looking for broader, stronger technology partnerships. It's getting tougher and tougher to get hydrocarbons out of the ground, and operators need a company with the staying power to see projects through with them.

On February 23, there was an enormous splash in the sea that is the oil and gas industry. Watch how far the ripples go.