Schlumberger 2012 Annual Report - page 23

Supporting the Technologies is a global network of research and engineering centers. Through this organization,
Schlumberger is committed to advanced technology programs that enhance oilfield efficiency, lower finding and
producing costs, improve productivity, maximize reserve recovery and increase asset value while accomplishing these
goals in a safe and environmentally sound manner.
Managed outside the Group structure is Schlumberger Business Consulting, which helps oil and gas companies
achieve fast and sustainable performance improvements.
Schlumberger primarily uses its own personnel to market its offerings. The customer base, business risks and
opportunities for growth are essentially uniform across all services. There is a sharing of manufacturing and
engineering facilities as well as research centers, and the labor force is interchangeable. Technological innovation,
quality of service and price differentiation are the principal methods of competition, which varies geographically with
respect to the different services offered. While there are numerous competitors, both large and small, Schlumberger
believes that it is an industry leader in providing wireline logging, well testing, drilling and completion fluids, coiled-
tubing, drill bits, measurement-while-drilling, logging-while-drilling and directional-drilling services, mud logging, as
well as fully computerized logging and geoscience software and computing services. A large proportion of Schlumberger
offerings is non-rig related; consequently, revenue does not necessarily correlate to rig count fluctuations.
Schlumberger completed a number of acquisitions during 2012, none of which were significant. Information about
acquisitions made by Schlumberger appears in Note 4 of the
Consolidated Financial Statements
Intellectual Property
Schlumberger and its affiliates own and control a variety of intellectual property, including but not limited to
patents, proprietary information and software tools and applications that, in the aggregate, are material to
Schlumberger’s business. While Schlumberger seeks and holds numerous patents covering various products and
processes, no particular patent or group of patents is considered material to Schlumberger’s business.
Seasonal changes in weather and significant weather events can temporarily affect the delivery of oilfield
services. For example, the spring thaw in Canada and consequent road restrictions can affect activity levels, while the
winter months in the North Sea, Russia and China can produce severe weather conditions which typically result in
reduced levels of activity. Hurricanes and typhoons can disrupt coastal and offshore operations. Additionally, customer
spending patterns for multiclient data, software and other oilfield services and products generally result in higher
activity in the fourth quarter of each year as clients seek to utilize their annual budgets.
Customers and Backlog of Orders
For the year ended December 31, 2012, no single customer exceeded 10% of consolidated revenue. Other than
WesternGeco, Schlumberger has no significant backlog due to the nature of its businesses. The WesternGeco backlog,
which is based on signed contracts with customers, was $1.0 billion at December 31, 2012 ($1.0 billion at December 31,
Financial Information
Financial information by business segment and geographic area for the years ended December 31, 2012, 2011 and
2010 is provided in Note 17 of the
Consolidated Financial Statements
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