Emerging Economies Hold an Important Place in Eaton’s Global Growth Strategy

Gardiner Henderson
Global Director, Oil & Gas, Eaton Corporation
Gardiner Henderson, Global Director, Oil & Gas, Eaton Corporation, says that there is always a challenge of maintaining high-quality and uninterrupted power essential for offshore environments. According to him, India continues to remain one of the company's key focus markets for its significant potential to discover new Oil & Gas basins as majority of the country's sedimentary area is not yet explored.

Please tell us about the on-going and upcoming trends in exploration and production globally which will drive the growth of power management in the Oil & Gas industry.
Oil & Gas exploration is one of the toughest industries in the world; and considering the increasing focus on exploring offshore reserves, it has never been more challenging. Drilling equipment today operate in more remote and harsher environments than ever before impacting costs and productivity. Equipment reliability is critical to keep costs down and project timelines on track. Power management companies like Eaton have a critical role in enabling the Oil & Gas industry achieve safe, reliable and efficient operations and lower costs.

What are the major risks, key technology and operational challenges for the Oil & Gas industry?
The world is being increasingly focused on the significant undiscovered Oil & Gas reserves, in order to continue to meet the demand for fossil fuels for power generation and mobility. On one hand, the pressure is on to keep exploration and production costs to a minimum, while on the other, there is this unique challenge of operating safety in a pristine and fragile ecosystem, and in extreme conditions. Offshore safety is not just about protecting the environment, the protection of personnel and equipment integrity is also crucial. One major safety threat for offshore workers is arc flash accidents. Another critical test is around reliability of equipment in deep sea environments - as majority of the equipment is based on the surface it faces challenges from both men and the environment. Besides, there is always the challenge of maintaining high-quality (efficient) and uninterrupted (reliable) power essential for offshore environments.

How integration of electrical, automation and hydraulic technologies could help overcome design inconsistencies and streamline project execution and planning?
Eaton has developed new technologies that combine electrical and electronics with hydraulics to create more intelligently integrated, responsive and reliable systems. This opens a whole new realm of possibilities. Electro -hydraulics has achieved a critical mass and is now ready to take its place alongside those traditional disciplines. There is a distinct trend around the evolution of engineered assemblies which are customised to meet the unique needs of each project and designed for easier, safer and less costly maintenance and repair.
A good example is the contrast between switchboards with low and high forms of separation. In a switchboard with a low form of separation, you have to take the whole switchboard out of service to remedy a fault. For a switchboard with a high form of separation, however, it will only be necessary to take a small part of the switchboard - one functional unit – out of service.

How do you compare the Indian Oil & Gas sector with China, Latam and Africa where E & P activity has increased significantly?
Eaton is excited about the opportunities that the growth in Exploration and Production (E & P) activities across regions has brought in. However, India continues to remain one of Eaton's key focus markets for its significant potential to discover new Oil & Gas basins as majority of the country's sedimentary area is yet to be explored. E & P spend in the country has shown consistent and substantial growth over the decade. This should create a tangible and sustained demand for our products and services.

What is the scope of opportunities for power management companies like Eaton within the Oil & Gas sector in India?
The scope is huge. For a company like Eaton, with its decades of experience in offering hydraulics, filtration and electrical solutions to applications in the world's most challenging offshore environments, the opportunities can range from offering our proven electro-hydraulics solutions to providing expert services that address some of the toughest technology challenges and operational risks of exploration. We have focused offerings to ensure safety, reliability and efficiency of applications and processes across the E & P value chain.

What are the products Eaton has to offer for the Indian Oil & Gas industry?
Eaton has its unique and comprehensive portfolio of electrical, hydraulic and filtration solutions tailored for offshore exploration and production that reduce risks, costs and downtime. Apart from components for exploratory equipment such as motors, pumps, valves, clutches, brakes, hose, and fittings, Eaton has a host of offerings that increase safety, reliability and efficiency of critical Oil & Gas applications that come in the form of arc flash safety solutions, technologies that reduce stresses on hydraulic equipment in deep sea environments, and products and services for continuous, clean and reliable power essential for offshore environments.
Eaton believes that the Indian Oil & Gas industry shall hugely benefit from its industry leading offerings such as LifeSenseTM technology that automates checks on integrity of hoses and enables preventative maintenance, UPS for offshore environments, Power Xpert range of power monitoring and management solutions for reliable power supply and protection, AxisProTM - next generation proportional directional valves in sophisticated electro -hydraulic axis control applications, and EatoniteTM laser clad coating - a premier corrosion resistant solution for cylinder piston rods used in deep sea exploration.

Which are the emerging markets on Eaton's radar?
Eaton is a truly global company that sells its products to customers in more than 150 countries with approximately 55 percent of its revenues generated in markets outside of the US. Emerging economies such as China, India, Brazil, Russia etc hold a very important place in Eaton's global growth strategy. Together they are responsible for the goal of generating 30 per cent of Eaton's total global revenues.

Tell us about the roadmap for growth and role of Indian operations in Eaton's global growth strategy.
India is a key market for Eaton and an important part of Eaton's goal of generating 30 percent of its sales from emerging markets. Eaton has set a growth goal of achieving USD 500 million sales in India by the end of 2015.
To support this, we have built new capabilities, expanded our facilities, launched new products and solutions for our diverse markets and successfully implemented focused customer engagement strategies.