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Schlumberger New Energy and some future insights

Santiago Cubillos's picture
Junior Mechanical engineer University of Los Andes

Mechanical Engineer graduated from the University of Los Andes. Awarded by the Colombian Ministry of Education for having an excellent performance on its governmental exam SABER-PRO. Experience...

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  • Oct 9, 2020
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The best company is the one that keeps innovating. Changes occur among time and the adaptability of each organization is crucial for the survival of it. As many may have noticed, there is an energy transition going that awakens traditional energy companies’ skills in order to test their adaptability. Many of these companies are introducing new business lines and products, according to their zero carbon emissions goal for the future.

The challenge for many corporations is to reduce the growth time of new business, this implies investment on research and development, also skilled personnel that can deal with those challenges sucessfully. The ones who are trapped in that transition are Oil & Gas (O&G) services companies, setting a big question: How can they adapt their technology and procedures to the customer’s new business operations?

Major O&G services companies have welcomed this transition in order to keep surviving more decades and creating value. This is the case of Schlumberger. The giant services company that has established its new strategy towards the future. In the past few months Schlumberger CEO, Olivier Le Peuch, addressed important points at the JP Morgan 2020 Energy, Power & Renewables Conference. His speech can be summed in 3 pillars: technology adaptation, carbon footprint and digital transformation.

New Energy

The most stricking act is the launching of a new business line, Schlumberger New Energy, a division created to explore new carbon neutral solutions, prioritizing in energy storage and energy efficiency. An easy way to link O&G expertise and renewables is by geothermal energy, because there are many techniques in common. This is where SLB New Energy portfolio is expanding, currently working with TEP (Thermal Energy Partners) on a 10MW geothermal power project in the island of Nevis, in the caribbean sea.

In addition, the new segment aims to eager markets for hydrogen production, using gas as feedstock and electrolysis powered by renewable energy. Schlumberger New Energy states the intention of diversification and new horizon business beyond Oil & Gas. This is the great conclusion after the restructuring of the company trying to align with the customer workflows and realize their performance strategy.

Reduce emissions

Moreover, Schlumberger aims to be the first O&G services company in setting a science-based target to reduce carbon emissions footprint for 2021. Due to this commitment, the corporation has evidenced investment in renewable energy for their assets, for instance, 26% of Egypt base is energized using solar PV systems; in addition, the engineering team managed to create a fit-for-basin technique, for BP Oman, that clean up and produce gas after fracturing; this reduces 80.000 tons of carbon emissions. More investments in low carbon emission solutions are expected and the speed of this is proportional to the recovering from COVID crisis.

Digitalization as a key for new products

Furthermore, The new digital products using data science and automation with the purpose of reducing costs and time, rise the company’s performance differentiation. Many software products, data transactions and cloud operations like DELFI environment, Open Subsurface Data Universe Forum (OSDU), DrillPlan or GAIA have been developed to satisfy customer needs. Schlumberger bets for digital transformation and has obtained positive results, using above technologies, with clients like ExxonMobil, Woodside or alliances with the Egyptian Ministry of Petroleum, for example. As Le Peuch said, “I declared the future is digital. Actually, that was misleading, the present is digital!”.

Oil & Gas majors welcomed energy transition

This is a clear successful case of how O&G services organizations are expanding or reinventing their business, certainly latest technology research act as a catalyst to create more carbon neutral products and I am sure Schlumberger is not the only services company that have started looking for solutions in new energy matters. You can find more examples by simply surfing on the net.

Santiago Cubillos's picture
Thank Santiago for the Post!
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