Savvy, experience key to success in energy industry

By combining technical savvy, strong financial controls
and the ability to attract and retain well-trained and experienced
workers, Houston-based Noble Drilling not only is staying
afloat in an increasingly competitive industry, but also
growing in the process.

With 60 percent of its offshore drilling units deployed
in international markets, including the North Sea, Brazil,
West Africa, the Middle East, India and Mexico, Noble Drilling
is among the world’s largest drilling contractors.
Operating in some of the world’s most challenging environments,
the company is focused on three important benchmarks for
success: engineering expertise, efficient operations and
customer satisfaction.

Jim Day, president and chief executive officer, attributes
the company’s success in all three benchmarks to one
simple rule of thumb.

“Our word is our bond,” said Day, who spoke at
a January Dean’s Lecture at the Jesse H. Jones Graduate
School of Management. “We do what we say, and we do
not promise what we cannot deliver.”
Operating heavy machinery costing millions of dollars in
deepwater drilling projects throughout the world, the company’s
engineering and technical expertise is put to the test every
day. Success of the company’s operations in harsh drilling
environments wouldn’t be possible without the skill
and expertise of their people, Day said.

Providing employees the opportunity to make meaningful decisions
and take responsibility for those decisions make the company
culture conducive to professional growth and development.

“Our people can and do make all the difference,”
he said. “We hire good people who can get the job done,
compensate them well and get out of their way.”

Safety is of foremost importance to the company and its
employees. People are Noble Drilling’s most important
asset, and their safety is the company’s greatest responsibility,
Day said.

“You can imagine risks involved when you have people
working in tough weather, 100 to 150 miles from shore,”
he said. “To ensure safety of our employees and efficient
operations, we need to have the kind of skill set among
our employees that can handle the challenges involved in
operating under all types of conditions. Before we go forward
on any project, we study, study, study.”

Ensuring that the company’s fleet operates at optimum
performance, Noble Drilling conducts continual work on improving
technology used in rigs and other machinery. “We’re
always looking at how to make things more efficient,”
Day said. “Our goal is to expand our offshore fleet,
employ higher technology, and become a larger player in
the international arena.”

In addition to the company’s commitment to safe and
efficient operations, ensuring the company’s financial
health also is an important factor in its success. The company’s
proactive style of management has guided it from a one-rig
operation in 1921 to one of the largest offshore drilling
contractors in the world today, Day said.

Since its spin-off from Noble Affiliates in 1985, the company
has grown through a series of strategic acquisitions of
offshore drilling assets and ancillary, noncapital intensive
businesses around the world.

“These acquisitions follow the goals originally set
forth in 1985: to gain a strong position in foreign drilling
markets, to expand marine drilling operations and to move
into new markets and segments of the industry, while preparing
the company to take advantage of an improved marketplace,”
he said.

The cyclical, volatile nature of the oil and gas upstream
industry has not deterred Noble Drilling from staying profitable,
through up and down cycles. While the drilling contractor
segment of the industry has seen consolidations during the
last down cycle, Noble Drilling has emerged stronger than
ever.

“By keeping strong financial controls, you can make
money even in a cyclical business,” Day said. “It’s
important to watch your reinvestment strategy and not to
get too carried away with debt.”

Convergence of Noble Drilling’s operational efficiency,
engineering expertise and sound financial strategy all contribute
to realization of the company’s ultimate goal: customer
satisfaction.