How GE Merger with Houston Oil Company Will Shake Up the Industry

The merger means GE and Baker Hughes will leapfrog other oil companies to put it in direct competition with the oil services giant Schlumberger.

By Rhonda FanningOctober 31, 2016 12:11 am,

Schlumberger, as the world’s largest oilfield services company, covers 84 countries. No other company in the business comes even close. Until, perhaps, now.

Another giant of the U.S. corporate landscape is making a power play into the energy services game. GE is merging its oil and gas business with that of Houston-based Baker Hughes. If regulators give the thumbs up, it would be the new #2 – a powerful rival to the king.

Dave Benoit, reporter for the Wall Street Journal, says this is a big deal, combining the two businesses will total more than $30 billion in revenue.

“[The deal is] putting together giants in drilling,” he says. “They talk about the deal this morning about going all the way through the oil production cycle.”

What you’ll hear in this segment:

– Why GE has spent the last few years doubling down on the oil and gas business

– How the up-and-comer leapfrogs other competitors to put it in direct competition with the industry giant Schlumberger

– What the future holds for this new company for investors