Basic Energy Services offers well site services to over 2,000 oil and natural gas drilling and producing companies. The company is broken into four distinct segments: Well Servicing, Fluid Services, Completion and Remedial Services, and Contract Drilling. Its services include well servicing, fluid services and well site construction services, completion and remedial services and contract drilling. Basic Energy Services operates in the United States onshore oil and natural gas producing regions, such as Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah and Montana. 
BAS is looking to grow by adding to the portfolio of services within the Well Servicing Market. Well servicing segment operates over 400 well servicing rig and related equipment and accounts for about 30% of revenues. Because services rigs are the first equipment on-site for a new maintenance or work-over project and stays for the duration of the project, BAS offers its customers other complementary services. Through acquisitions and internal growth, BAS has added to its offering of services. In 2010, BAS acquired Taylor Rig, a rig manufacturing business. 
Prices for oil and natural gas have historically been volatile. The Cushing WTI Spot Oil Price averaged $99.67, $61.65 and $79.39 per barrel in 2008, 2009 and 2010, respectively, and the average wellhead price for natural gas, as recorded by the EIA, was $8.07, $3.66 and $4.18 per Mcf for 2008, 2009 and 2010, respectively. E&P companies base their decisions on whether to make operating and capital expenditures on the current and future price of oil and natural gas. A reduction in capital expenditures by E&P companies directly reduces demand for BAS's services.
The Federal Energy Policy Act of 2005 amended the Underground Injection Control provisions of the federal Safe Drinking Water Act to exclude hydraulic fracturing. However, many advocacy organizations are arguing for the repeal of this amendment. In recent Congress sessions, proposals requiring the federal permitting and regulatory control of hydraulic fracturing and disclosures of the chemical makeup of the fluids used in the fracturing process were put forth. The EPA has commenced a study of the potential environmental impacts of hydraulic fracturing and the results will be ready by late 2012.
Additional legislation could lead to operational delays and increased operating costs and make it more difficult for E&P companies to perform hydraulic fracturing. Fracturing services accounts for a large portion of BAS's completion and remedial services segment, which accounts for 36% of revenues.