Baker Hughes Oilfield Operations Inc

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Houston, Texas-based Baker Hughes Oilfield Operations Inc. (aka Baker Hughes International), a provider of consulting and services to the oil and natural gas industry, was reported in August, 2008 expanding into Pennsylvania in order to serve the expanding drilling activity there in the Marcellus shale.

As reported in February, 2009, during the spring of 2009, Baker Hughes will begin construction on a new 60,000 square foot, $12 million drilling service center and office located in the Westmoreland Technology Park in Hempfield, Pennsyvania.

According to statements made by company engineering staff, Baker Hughes brings to bear a variety of tools for analysis and interpretation of Marcellus shale and other shale reservoirs. It has an integrated methodology that concentrates on interpreting neutron density and acoustic logs as well as conventional resistivity, Other data used include borehole image logs, geochemical, geomechanical, and magnetic resonance. These various measures are integrated into an array that is studied in the context of the lithology, mechanical properties of the rock, mineralogy, total amount of gas-in-place in the formation as well as organic carbon.

Baker Hughes consults on all aspects of the drilling project including the best way to get the gas out of the ground, which intervals to complete, hydro-fracturing (frac) design and where to place the lateral in horizontal drilling. For example, the geochemical and acoustic logs can tell the analyst where the rock in the formation is the most brittle in order to determine what intervals will be the easiest to frac.

The consultant also tries to understand the porosity by examining the standard logs and the magnetic resonance. The best interval tends to be one where the rock breaks easily, but also has the highest porosity and organic carbon close to the interval to supply the gas.

The overall objective of the study is to find the best interval to complete, or if the well will be a horizontal one, to find the best interval to drill the lateral. The consultant usually makes a graphical presentation of the results and recommendations to a gas company client emphasizing the target rock, any part of the formation that could block a fracture, and which rock to avoid.

• Gene Shiels is Baker Hughes' Assistant Director of Investor Relations.
• Duane Sommer is a Senior Petrophysical Engineer with the company.