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Difficult to Drill is Good for These Folks: A Wall Street Transcript Interview with Brandon Dobell, a Partner and Group Head, Global Services, at William Blair & Company, L.L.C.

67 WALL STREET, New York - January 8, 2014 - The Wall Street Transcript has just published its Oil & Gas: Drilling Equipment and Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Bundled Oil and Gas Services - Oil and Gas Transportation Services - Dividend Yields for Energy Investors - Domestic Crude Prices - International Energy Opportunities

Companies include: Oil & Gas Service Companies Specializing in the Exploitation of Unconventional Sources

In the following excerpt from the Oil & Gas: Drilling Equipment and Services Report, a senior equity research executive with many years of experience discusses the outlook for the sector for investors:

TWST: When you look at the big picture, what factors and trends do you believe will drive energy exploration and development, and what are the implications for energy services companies?

Mr. Dobell: I think from a very top-down perspective, the world, whether it's the developing world, emerging markets, continue to need more energy. It's particularly true in the emerging markets; as those populations move from agrarian to industrial, industrial to services, you're just going to need more power of all kinds to help drive those economies. At the same time, like in a lot of things, the easy things have been done, the easy basins have been tapped.

Conventional resources in a lot of areas have already been found and developed to a certain extent, so going forward, the majority - and you've seen this the past couple of years - the majority of exploration efforts and discoveries have been made in either unconventional basins, like you see in North America or Argentina, or in deepwater offshore basins, like you've seen in West and East Africa, or off the coast of Brazil, areas where five or 10 years ago I don't think anybody thought we'd be looking for oil and gas, and certainly nobody thought we'd be able to tap into those basins.

So it's getting tougher and tougher to find the stuff, it's getting tougher to get that stuff out of the ground. At the same time you've got - it's kind of slow demand growth for hydrocarbons in general, mostly because of substitutes, alternative energy, whether it's solar, wind, coal, hydro power, etc., have a difficult time making too much of a difference, because it's difficult to generate an awful lot of power capacity from those alternative sources.

The implications, I think, for the equipment and service companies from these big-picture trends of having to go deeper, farther, using more technology to find and extract oil and gas, I think vary a lot depending on which part of the world we're talking about. If it's on land versus deep water, and then certainly depending on what geography we're talking about, if it's Middle East versus Brazil.

But in general, we think on a very long-term basis, companies that are involved in helping E&Ps in the offshore theater, so deepwater and offshore, are going to be in a good position, whether it's the guys that make the rigs, the guys that contract out the rigs, or the companies that help put equipment on the seabed floor, once those wells start producing, or the service companies that help the development process and the production process...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.