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Environmental Performance

Our 2017 environmental performance in several priority areas is set out below. We also continue to develop technologies that can help our customers optimize production and reduce their environmental impacts.

Our greenhouse gas emissions remained relatively flat during the year. Total energy consumption rose slightly, mainly due to our merger with Cameron in 2016 – Cameron has manufacturing units that require more energy than most of our other business units. Fuel consumption on land rose as well, primarily due to increased hydraulic fracturing activity in North America.



Climate Change

We align with the United Nations Sustainable Development Goals (UN SDGs) of reducing environmental impacts and fostering technology innovation. We also support the efforts of IPIECA, the global oil and gas industry association for environmental and social issues. IPIECA has partnered with the United Nations Development Programme (UNDP) and the International Finance Corporation (IFC) to develop a shared understanding of the implications of the UN SDGs for the oil and gas industry.

Internally, we continue to advance our data collection capabilities with the intention of addressing climate change through annual improvement in the measurement and management of our carbon footprint. A new model we developed to monitor water use is now helping managers at many of our facilities in the northwestern United States identify leaks and other anomalies, saving significant amounts of water. For example, our employees at a facility in Wyoming identified a leak using the model and are now saving nearly three million gallons of unintentional water use annually.

Externally, our position as a global technology leader gives us an unparalleled ability to address climate change with technologies that help our customers increase their operational performance while reducing or avoiding emissions, lowering water usage, improving chemistry applications, and increasing oil and gas production. Our corporate strategy is to continue developing a system-level view to fully optimize the finding, development, and production of new and existing oil and gas resources. Increasing the volume and quality of accessible data better equips the exploration and production (E&P) industry to make informed decisions that reduce subsurface risk, optimize production, reduce resource consumption, and save greenhouse gas emissions.

Biodiversity

To eliminate, minimize, mitigate, and manage significant ecosystem or biodiversity impacts, Schlumberger has developed a risk-based procedure for the creation of ecosystem and biodiversity management plans. These plans protect sensitive wildlife areas, flora and fauna, ecosystems, and conservation areas. They also prevent the introduction of invasive species and establish conditions to facilitate the rehabilitation or restoration of land areas impacted by Schlumberger operations and project activities. The plans detail any local regulations requiring reporting on ecosystem and biodiversity management activities, and are reviewed periodically to ensure applicability.

Schlumberger designs and manages its operations to minimize the impact on ecosystems and biodiversity across the life cycle of each facility, activity, product or service. Monitoring ecosystem and biodiversity impact takes place throughout the life cycle of the project or facility. Medium- to high-level risk controls are applied when Schlumberger operations are in environmentally sensitive areas, have a potential for significant wildlife loss, have the possibility to introduce invasive species, or could impact a large body of land or water.

As far as reasonably practical, Schlumberger uses existing infrastructure to avoid or reduce the need for land clearance for construction. Where practical, new Schlumberger infrastructure is not placed in environmentally sensitive areas. The Company strives to minimize environmental disturbance; restrict the movement of machinery and equipment during work activities; plan land restoration; and schedule activities that may cause disruption and disturbance to wildlife to avoid sensitive periods of the year.

Managing Environmental Risk

Schlumberger uses a flexible, risk-based approach to manage and mitigate the environmental aspects and impacts of our activities, products, and services. The diverse nature of these environmental aspects and impacts requires a flexible approach. Our commitment to environmental protection, as described in our HSE risk policy and the Schlumberger Blue Print in Action–Our Code of Conduct, requires that a minimum standard of environmental performance is established at each of the Company’s facilities, regardless of local regulatory requirements.

Our environmental risk management program uses a combination of 14 fundamental controls that are implemented at Company locations in environmentally sensitive areas, and 12 risk-based controls that are implemented to manage the environmental aspects and impacts of a specific business activity. The requirements for risk-based controls are described in business-specific environmental risk assessments for each of our geographical regions and business Segments. Each of our worksites uses this risk assessment to create a documented, site-specific environmental program that describes which controls are applicable to the site and how those controls are implemented.

Implementation of the environmental management program is supported by the management systems and processes described in our corporate standards and a number of web-based IT systems designed to collect and manage environmental performance data, regulatory compliance documentation, and procedural documents.

Our environmental management program includes several processes that provide assurance of internal conformance to our own requirements and assurance of external compliance to applicable regulatory requirements. These assurance processes are documented and subject to periodic internal review. The Schlumberger environmental risk management program has been developed to align with the requirements of our external stakeholders, including our customers and regulatory agencies in the countries where we operate. To support those stakeholders, we have developed our program to include the requirements of two recognized independent environmental management standards—the International Standards Organization ISO14001:2015 and the environmental components of the International Finance Corporation (World Bank Group) Environmental & Social Performance Standards. Furthermore, a third-party organization has completed a review of our program’s alignment to those two standards.

Operational Integrity

Operational integrity at Schlumberger is about ensuring that the Company can deliver safe, efficient, and reliable products and services for our customers. Schlumberger is committed to achieving a tenfold improvement in operational reliability by 2020. In addition, our multiyear transformation program benefited field operations through increased efficiency, improved reliability, and reduced nonproductive time (NPT). NPT is the time it takes to return to the same working position on a job after a service quality incident or equipment failure. In 2017, we improved our NPT rate by 60% over our baseline year of 2011, which is a significant achievement given industry conditions. Working more efficiently, doing things right the first time, and decreasing nonproductive time helps our customers reduce emissions.

Chemical Transparency

In 2010, Schlumberger developed a chemical disclosure process for hydraulic fracturing called the “systems approach.” Five years later, the process was adopted by Frac Focus—a US and Canadian registry for public disclosure of fracturing chemistry—with the goal of improving industry-wide transparency rates. After eight years and nearly 22,000 disclosures by Schlumberger, our industry-leading rate of disclosure for chemical constituents continues to be nearly 100%.

Third-Party Audit

Schlumberger continues to quantify environmental data and identify ways to reduce it. In 2017, we engaged PricewaterhouseCoopers (PwC) again to audit our methodology for quantifying direct and indirect GHG emissions linked to our operations around the world. As a part of this process, PwC auditors reviewed our processes and procedures and verified selected environmental and health and safety data. Environmental data audited in 2017 includes Scope 1 and Scope 2 emissions of greenhouse gases, waste production, water consumption, spills, and energy consumption. Health and safety data includes employee and contractor lost time injuries and illnesses and the associated workhours to determine frequencies and rates. PwC has expressed a limited assurance that our data are in all material respects fairly presented and in accord with Schlumberger guidelines.

Evaluating Potential Impacts

The Schlumberger Stewardship Tool is software that we have developed to incorporate sustainability into our engineering and operational practices by modeling efficiency gains at the wellsite that yield a lower environmental footprint. By modeling our environmental footprint relative to metrics such as emissions, air quality, water use, noise, and chemical exposure, the unique web-based software is used to evaluate potential projects related to well stimulation. This stewardship tool has been used in the development of new stimulation technologies that feature environmental benefits, including BroadBand Sequence* fracturing service and our Automated Stimulation Delivery Platform. In 2017, we developed new modules for wellsite preparation and drilling applications to expand the coverage of the stewardship tool beyond well stimulation. Our customers and stakeholders and other companies in the oil and gas industry can use this resource to evaluate each phase of a project and determine which activities have the greatest potential for environmental impacts.

Managing Facilities

The Schlumberger Global Facilities Management and Maintenance Standard defines our responsibilities associated with managing facility activities. The goal is to minimize utility use and the impact of our activities on the environment. The standard is designed to ensure that facility activities are compliant with Schlumberger policies as well as relevant local environmental legislation and directives. Waste generated by any facility task must be measured and disposed of in a responsible manner with a licensed waste broker, and materials (particularly chemicals) that reduce or control pollution must be handled and stored responsibly. The standard requires energy-saving products and practices to be used in all aspects of facilities management activities, and that a record is kept of energy use. In addition, employees and contractors who carry out facility activities must receive appropriate training, particularly when their work may have an impact on the environment. In 2017, Schlumberger occupied 713 sites and facilities with environmentally significant activities around the world, and 74 of them were certified to the ISO14001 standard.

Carbon Service
Carbon Service

Schlumberger Carbon Services (SCS) is involved in more than 40 carbon capture and storage (CCS) projects around the world. SCS helps companies avoid emissions through the provision of services and technologies for long-term geological CO2 storage. The business was formed in 2005 in response to growing awareness about the impact of CO2 emissions, and SCS still focuses on the challenges of storing CO2 captured from industrial sources underground to help mitigate climate change and protect the environment. In 2017, we continued to participate in the Illinois Industrial Carbon Capture and Sequestration Project, a large-scale demonstration project designed to store 1 million tonnes of CO2 annually approximately 7,000 feet underground in the Mt. Simon Sandstone. We also continued to offer carbon capture and utilization technologies for Enhanced Oil Recovery (EOR). These technologies are designed to assist energy providers and other large-scale carbon emitters in capturing and utilizing waste CO2 in EOR operations. For example, we have provided characterization services at the Bell Creek field in Montana, where 1 million tonnes of CO2 from the Lost Cabin gas plant in Wyoming is being injected underground.

Air Emissions

Schlumberger wellsite activities increased in 2017, leading to a 19% increase in our overall Scope 1 emissions from 1.14 million tonnes in 2016 to 1.36 million tonnes. Our Scope 1 increase was primarily due to the upturn in pressure pumping and hydraulic fracturing in North America. This was partially offset by a 20% decrease in our overall Scope 2 emissions from 0.70 million to 0.56 million tonnes. This is primarily due to reduced manufacturing activity. Combined Scope 1 and Scope 2 GHG emissions increased marginally from 1.84 million tonnes to 1.92 million tonnes.


Water Use

Our overall water use increased slightly from 3.4 million cubic meters in 2016 to 3.8 million cubic meters in 2017. This increase in water use was primarily due to the inclusion of a full year of Cameron activities, which we acquired in 2016, and an increase in business activity in North America Land. Our water consumption data includes 100% of our facilities.

Waste Management

To manage waste materials more efficiently, Schlumberger is constantly improving processes and materials. We reuse materials when possible, recycle more for our own operations and for our customers, and use our novel technologies to find new recovery methods. We continue to seek opportunities to reduce both our direct consumption of resources and the waste we generate. In 2017, we continued to improve data collecting processes. Improvements to the measurement of our waste management processes in North America combined with the inclusion of a full year of Cameron data following our acquisition of Cameron in 2016 resulted in a 10% increase in reported waste generated for a combined total of 539,000 tonnes, of which 184,500 tonnes was recycled.

Loss of Containment

We have procedures in place to minimize, respond to, and control the environmental impact of uncontained spills at Company worksites and at some third-party controlled worksites. However, our industry-recognized number of incidents greater than one barrel increased from 32 in 2016 to 45 in 2017, although the volume of hydrocarbons fell from 547 barrels to 436, a decrease of 21%. We have reviewed our processes and procedures and provided employee training designed to minimize unplanned releases of oil and chemicals to the environment.

Energy Use

Electricity use was essentially unchanged year-on-year, decreasing from 1,220,000 MwH in 2016 to 1,154,000 MwH in 2017. This was primarily due to relatively flat facility-related activity during the year.

Raw Materials

As a part of an ongoing effort to improve data collection, we have expanded raw material data to include global consumption of sand, proppants, brines, cement, barite, and bentonite. Raw materials utilization typically follows changes in wellsite activity.

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