It was announced this week that Siemens, a German electronics and engineering company, has made a deal to purchase Dresser-Rand, a US-based oilfield equipment manufacturer. This agreement concludes a bidding war between Siemens and Sulzer, a Swiss pump manufacturer.
The deal, worth $7.6 billion, will give Siemens direct access to US domestic oil production, a sector currently booming from new extraction techniques like hydraulic fracturing. Houston, Texas is a primary hub for the oil industry and this location is an ideal place for Siemens to enter the growing US market. Siemens has already played a role in the US power industry, mainly with its production of gas turbines. The company is also purchasing Rolls-Royce Holdings PLC’s energy gas turbine and compressor business, including its Houston operations.
The news follows that of GE acquiring Alstom, which occurred earlier this year.
Essential to the oil and gas sector is turbomachinery. With the use of pumps for oil extraction and micro gas turbines for off-shore power and drilling, it is clear why major engineering companies such as Siemens and GE are buying their way into the market. SoftInWay has worked with Dresser-Rand and Alstom companies for years, supporting their engineering projects and using the AxSTREAM software for design. SofInWay is pleased with the opportunity to continue contributing to sales and excited about what is happening in today’s industry.
The oil and gas industry is clearly on the minds of these major companies. With these deals comes the opportunity to design and develop innovative equipment that will optimize their operations.