Is DOJ probe into Halliburton and Baker Hughes in antitrust investigation unjustified?

Is the Department Of Justice www.justice.org probe into Halliburton www.hallibuton.com and Baker Hughes www.bakerhughes.com in an antitrust probe unjustified?

The definition of ANTITRUST is : Opposing or intended to regulate business monopolies, such as trusts or cartels, especially in the interest of promoting competition: antitrust legislation.

This means those being looked into may have the ability to monopolize a business sector. This particular case, the Department of Justice’s Antitrust Division is probing “The hydraulic fracturing with the DOJ looking into the possibility of anticompetitive practices involving pressure pumping performed on oil and gas wells.”

Here is why this probe will fall on flat on its face and/or will fade away quickly. Halliburton on holds approximatly 18% share of the “practices involving pressure pumping performed on oil and gas wells”. Add to this Baker Hughes at approximate 12% and a total of 30% share does not even come close to meeting the minimum threshold of an antitrust suit.

What appears just as odd is the company holding the two ranking in “practices involving pressure pumping performed on oil and gas wells” Schlumberger www.schlumberger.com is apparently not involved in the probe given it was not to my knowledge mentioned in their 10Q report. Schlumberger has an approximate 13% share in the “practices involving pressure pumping performed on oil and gas wells”.

So let us total the top three approximate percent share of market; Halliburton at 18%, Schlumberger at 13% and Baker Hughes at 12% for a grand total share of market of 43%. Yes, only 43%. So, even taking the top three players will not breach a 51% share. To break the minimum barrier we must add the fourth position held by either Weatherford www.weatherford.com or Frac Tech www.fractech.com both with an estimated 10% share.

Summary, if it takes four of the largest companies to reach the 51% is there any chance that number 1 Halliburton and number 3 Baker Hughes have a monopoly?

So why the probe? It appears there are two possible reasons- First, the DOJ was not aware that the second largest company Schlumberger which has “practices involving pressure pumping performed on oil and gas wells ” actually exists or they are targeting high profile companies to please their green, anti-fracturing base. In either case it is about to get very embarrassing for the DOJ.

I have two suggestions: 1) DOJ drop your unwarned probe 2) Schlumberger, stay out of the crosshairs.

 

Texas Oil Gas Services TOGS partners with Bakken Energy Service & Tuscaloosa Energy Services

Texas Oil Gas Services – TOG  Services   www.texasoilgasservices.com   partners with Bakken Energy Service www.bakkenenergyservice.com and Tuscaloosa Energy Services www.tuscaloosaenergyservices.com . Please read the following link-       http://www.texasoilgasservices.com/?p=61

TOG Services, LLC www.texasoilgasservices.com linked with www.bakkenenergyservice.com Bakken Energy Service

www.texasoilgasservices.com TOG Services, LLC  doing business in the Eagle Ford, Permian Basin and Barnett oil and gas plays is linked with  www.bakkenenergyservice.com Bakken Energy Service doing busniess in the Bakken, Williston Basin and Niobrara.

 

TOG Services Texas Oil Gas Services located in the Eagle Ford, Permian Basin and Barnett. woodford, tuscaloosa

TOG Services Texas Oil Gas Services located in the Eagle Ford, Permian Basin and Barnett.

 For more information on TOG Services visit www.texasoilgasservices.com

Dacotah, LLC joins Bakken Energy Service providing low profile steel liquid storage tanks for oil, water

Dacotah, LLC  www.dacotahllc.com joins Bakken Energy Service www.bakkenenergyservice.com  providing  low profile steel liquid storage tanks for oil and water in Bakken, Williston Basin. Major project completed in Fort Berthold www.mhanation.com  . The tanks are proudly engineered in North Dakota www.nd.gov

steel, tanks, oil, dakotah llc, Bakken Energy Service, Fort Berthold,

Dakotah LLC low profile 946 barrel steel tanks on Fort Berthold site. Designed to blend into the beautiful environment at only 12 feet high.

In early 2012, Dacotah, LLC’s parent company, Micada  www.micada.com , was approached to design and fabricate a  for installation on the exploration and production pads on the Fort Berthold Reservation. The primary concern was the extreme visibility of conventional storage tanks, which although very common, are not easy to conceal and according to some of the end users detracted from the wild landscape.

In February, Dacotah, LLC  introduced its’ low profile tank capable of storing 967 barrels of Bakken crude oil or 40,600 gallons of production water. With an overall height of less than thirteen feet, the tank or tank battery is easily concealed behind any low ridge or berm.

By mid-June the first eight tank battery was installed on the Ft. Berthold Reservation at Independence Point on the shores of Lake Sacajawea.

In keeping with the custom fabrication tradition of Micada, all Dacotah tanks are hand-built using either US or Canadian steel in accordance with standards set forth in API Standard www.api.org/standards 650 11th Edition handbook. All the tanks are fabricated in a climate controlled environment by AWS and Canadian Board certified welders. The precision rolled side walls, pitched roof and floor are formed from ¼” HR plate and welded inside and out then vacuum and pressure tested to guard against leakage.

As a final step, all interior seams are hand finished to “near white metal” then coated with an acid and  solvent resistant sealant against long-term leakage. This sealant is crack resistant has been tested against breakage. It has been bent to a 12 inch radius before cracking appeared. The exterior of all tanks are cleaned, epoxy primed and top coated.

Dakotah LLC a member of Bakken Energy Service produces  world class, steel low profile tanks in North Dakota . These engineered tanks hold 946 barrels of oil and at only 12 feet high greatly are much safer to climb, inspect and maintain.

Dacotah LLC a member of Bakken Energy Service produces world-class, steel low profile tanks in North Dakota . These engineered tanks hold 946 barrels of oil and at only 12 feet high greatly are much safer to climb, inspect and maintain.

As a custom fabricator, we can offer smaller storage tanks for volatiles. While not part of the inventory, these tanks can are fabricated to customer specifications.

Dacotah tanks are turnkey when delivered, complete with internal roof support column and roof rafters. The blow in and sump pipes are factory installed as are all necessary pipe couplers and the access hatch door. All thief hatches must be ordered by the end-user due to the variability of styles.

Dacotah, LLC also supplies OSHA www.osha.gov compliant walkways and stair systems to match their tanks. The walkways are fabricated from hollow structural steel (HSS) with galvanized walking surfaces. The walkways are shipped out in fully assembled twenty-foot sections. Stairs are fabricated using channel raisers, galvanized treads and HSS welded handrail. Everything is cleaned, primed and top coated before shipping.

All materials used in the fabrication of Dacotah, LLC storage tanks, catwalks, stair systems and step-overs conform to one or more of the following ASTM specifications; A36, A53, A500 Gr.B, RR-G661a or MIL-G-1958.

Dacotah, LLC is www.dacotahllc.com located in Hope, North Dakota just hours from the heart of the Bakken Play.“Dacotah, LLC – Backin’ the Bakken”.  Dakotah, LLC  www.dacotahllc.com joins Bakken Energy Service www.bakkenenergyservice.com  providing  low profile steel liquid storage tanks for oil and water in Bakken, Williston Basin. Major project completed in Fort Berthold www.mhanation.com .      The tanks are proudly engineered in North Dakota www.nd.gov . Call Michael Gram at 701.866.8602 michael.dacotahllc@gmail.com