Intro

In recognition of NAPE week in Houston, we are delighted to welcome back David Bat, President of Kimberlite Research, to explore the latest OFS activity, trends, and technologies. David brings more than 30 years of experience spanning upstream, power, and oilfield research. Prior to joining Kimberlite in 2015, he served as VP and General Manager of Constellation New Energy, President of Welling & Company, and President of Stream-Flo USA. He began his career as a geologist with Chevron. Kimberlite is an international oilfield research firm that draws on insights from more than 20,000 hours of annual interviews with industry professionals to analyze market trends and benchmark performance for oilfield equipment and service providers. We were excited to hear David’s perspective and latest insights.
 
In our conversation, we cover Kimberlite’s research model, the data it captures from operators, and how the firm uses AI as an enabling tool. David shares Kimberlite’s 2026 operator sentiment and activity outlook and highlights regional hot spots for expansion (including Latin America, the Middle East, Norway, and West Africa) and discusses key technologies improving recovery and efficiency, as well as the runway for further gains. We compare international versus North American market structure, noting that the “Big Four” hold roughly 80% share across much of the international/offshore oilfield services market, while North America is highly fragmented with many specialty providers. We touch on the Permian as a global incubator for innovation, the Haynesville as a proving ground for high-temperature tools, David’s longer-term outlook for the Lower 48 Tier 1 runway, operator-to-operator differences in service outcomes, and supplier performance dispersion and benchmarking, with performance and fit varying by basin. We explore upstream digital transformation strategies, why domain expertise matters for applying AI, hydraulic fracturing digital dynamics, and where digital value is expected to emerge, especially in production optimization. We also cover why consolidation is viewed as desperately needed in oilfield services yet hard to execute, Canada’s market dynamics, and the strong demand for qualified personnel and quality equipment in international and offshore markets. David shares his exploration outlook, potential drivers of improved recoveries, newer tech players, and Kimberlite’s Net Promoter Score (NPS) work, which he says correlates strongly with future financial performance and competitive strength; fewer than 10% of the OFS companies Kimberlite tracks exhibit truly distinguishing, scalable, "elite" customer-focused characteristics. A few select slides from David’s presentation are linked here. It was a wide-ranging discussion and we’re grateful to David for sharing his expertise with us all.
 
Mike Bradley kicked off the discussion by noting that the 10-year U.S. bond yield appears to have stabilized in the 4.0% to 4.10% range after plunging last week on a cooler-than-expected January CPI report. In crude markets, WTI price has been stuck over the last several weeks between $60-$65/bbl and inched a little lower to start this week (~$62/bbl) following reports that Iran and the U.S. have a “general agreement” on the basis for a potential nuclear deal, which could eventually lead to an ease in Iranian sanctions. An agreement in the next couple of weeks could lead to an additional pullback in oil prices if the oil market narrative shifts away from a modest “war premium” towards the IEA’s 2026 global “oil glut” (~3.7mmbpd) narrative. On the natural gas front, he highlighted that the recent Arctic-driven winter premium for prompt gas price (~$3.00/MMBtu) and 12-month strip (~$3.50/MMBtu) have been completely u