GE Sees Oil Price Rising in Baker Hughes Deal: Rattner

The transcript discusses GE's strategic move in the oil industry, focusing on a non-cash merger to control a large entity. It highlights the role of technology in improving productivity in oilfield services but doubts GE's ability to change the industry's economics alone. The conversation shifts to GE's focus on industrial assets and the potential impact on customers due to market consolidation. Finally, it addresses regulatory and antitrust concerns, particularly in light of upcoming mergers and the role of the Department of Justice.

What is the main reason behind GE's non-cash merger in the oil industry?

• To reduce operational costs

• To gain control over a large entity

• To diversify into renewable energy

• To exit the oil industry

How has technology impacted the oil sector according to the discussion?

• It has made oil extraction obsolete

• It has reduced the need for oilfield services

• It has improved productivity in drilling and completions

• It has increased the cost of drilling

What significant change has GE made in its business focus?

• Expanding into the automotive sector

• Investing in renewable energy

• Exiting GE Capital to focus on industrial assets

• Entering the media industry

What concern might customers have regarding GE's consolidation in the oil services business?

• More options for oilfield services

• Increased competition

• Higher prices due to reduced market competition

• Improved service quality

What is a potential regulatory challenge mentioned in the discussion?

• Environmental regulations

• Antitrust issues with mergers

• Labor laws

• Taxation policies