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baker hughes cooks upa bakers dozen ofproducts and services for the global petroleum market through its drilling and evaluation segment baker hughes makes products and services used to drill oil and natural gas wells through its completion and production segment the company provides equipment and services used from the completion phase through the productive life of oil and natural gas wells it also makes bits and drilling fluids andsubmersible pumps its industrial service segment provides equipment and services for the refining process and pipeline industries since 1944 baker hughes has published a weekly report that counts active drilling rigs and which serves as a barometer for the industry financial analysis the booming north american contract drillingmarket which saw a 60 increase in oil drilling in 2011 and a growthin liquidrich natural gas drilling in shale formations coupled with high oil pricesresulted in a major surge of revenues for baker hughes that year the increased activity and income fromthebj servicesacquisition liftedthe companys overall net income in 2011 the bj services acquisition greatly boosted the companys revenues and income in 2010whichwere also enhanced by high oil prices and the rebounding global economy which generated stronger demand for oil and gas exploration and production activities strategy the company has grown through product innovation it developed the first oil well drill bit for rock in 1909 strategic alliancesand acquisitions in a major industry consolidation in 2010 baker hughes acquired oil field services titanbj services for $69 billion the acquisition expanded baker hughes portfolio addingpressure pumping toits product offering giving it a stronger platform for international growth andthe ability tobetter compete for large integrated project contracts in the unconventional gas and deepwater markets in particular the purchase strengthened the companys integrated services and expanded its reservoir capabilities in 2010 subsidiaries of baker hughes sold tosuperior energy servicesthe firms gulf of mexico stimulation and sand control business for $55 million baker hughes was required to divest the business by thedepartment of justiceas a condition of itspurchase of bj services expanding its presence in canadain 2010 baker hughes acquiredoil field equipment supplier tanroc it further expanded its global footprint with the opening of an oilfield services plant in australia in 2010 and a drill bit manufacturing facility in saudi arabia in 2011 in 2012 baker hughes launched a new service to identify potential drilling issues before they occur by pinpointing similar case histories in realtime baker hughes welllink radar remote drilling advisory service has remote service engineers monitor drilling operations whileits drilledge software looks for patterns based on similar situations where problems have occurred in previously drilled wells

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