How is Schlumberger “Taking Climate Action?”
We made an exciting announcement earlier this year, our 2050 net-zero commitment, inclusive of Scope 3 emissions. This is an industry-leading ambition to decarbonize the entire oil and gas value chain where we can have impact. Nearly three-quarters of our emissions footprint comes from the use of our technology for customers. We simultaneously launched our Transition Technologies portfolio of solutions that target oil and gas operations emissions to help ourselves and our customers achieve their commitments.
“Taking Climate Action” for us is also about investing in energy transition in areas beyond oil and gas, where we are leveraging our expertise, a partnership-based approach, and our ability to commercialize technology at scale globally to expand our market reach and impact across the transition. Our focus is on energy end-use efficiency and conversion. Our ventures include technologies in geothermal, geoenergy, hydrogen, carbon capture and sequestration (CCS), lithium, and energy storage.
Finally, effectively understanding how both climate change and energy transition can affect our business, and consequently managing those risks as a part of our overall corporate strategy, makes us resilient and enables us to stay ahead of the competition. Given the high level of uncertainty and the extended time horizon for these risks, our approach is data-centric and scenario based. In that vein, we have used Taskforce for Climate-related Financial Disclosures (TCFD) as a framework to conduct global and country level risk and opportunity assessments.
What does “Creating Opportunity” look like at Schlumberger?
With increasing regionalization, our formula for success is leveraging diverse, empowered local teams who understand local issues, and giving them a technology portfolio with regional agility to address local operational and commercial challenges, while at the same time creating opportunity in the value chain, and ultimately, contributing to regional energy access.
Schlumberger is well positioned for the first element—a diverse workforce is a key part of our culture and we have an essential ambition to maintain that.
The second element for success—a technology portfolio with regional agility—is a shift from the traditional approach of a single solution that is a good fit for most of the world, with basin-specific solutions only developed as required. To make this shift, we now have formal governance in our new product development process to collect, vet, and develop fit-for-basin solutions as part of the regular new product development process. These solutions inherently have a high degree of local content—local manufacturing, local supply chain, even partnering with local competitors.
Fit-for-basin describes not only our approach to developing discrete technologies to address regional operational challenges, but also encompasses using the local value chain and tailored contract models where the challenge is commercial.
One example is a portfolio of completions products adapted for the local market in Saudi Arabia. To manufacture these fit-for-basin technologies, we opened a new technology manufacturing center in the Saudi Aramco-operated King Salman Energy Park, or SPARK. This facility is now delivering, creating in-country value local supply, and positions us as regional leaders in production systems equipment.