Changing the Way We Work

Oil and natural gas meet about half of the world’s primary energy demand, and are expected to do so for the next 25 years. However, the combination of an aging production base requiring continuous investment and the addition of new production in an environment of lower commodity prices is putting pressure on profitability. To remain a supplier of cost-effective energy, the exploration and production industry must improve its performance.

As the custodians of hydrocarbon resources, oil and gas companies direct the technical workflow. In turn, the service industry develops and deploys most of the technology required across increasingly complex oilfield developments. Given the challenge to improve performance, we at Schlumberger believe that we must change the way we work. Earlier this year, we laid out our plans to make a step change in our performance in four distinct ways—accelerating technology innovation, improving technical reliability, increasing operational efficiency, and pursuing greater integration. These are the drivers of our market leadership and differentiation, with innovative technology and greater integration accelerating revenue growth, and reliability and efficiency lowering the cost of service delivery. The result is financial outperformance—for Schlumberger and its customers.

Accelerating the Pace of Technology Innovation

The oilfield service industry’s research and engineering investment has developed evolutionary products that do things better and more cost effectively. But considering the rate of technology change in other industries, upstream technology can become more innovative and be developed more efficiently and much faster.

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Improving Reliability and Increasing Efficiency

Operational failures cost the E&P industry billions of dollars in nonproductive time, project delays, and cost overruns. This performance substantially lags that of other high-technology industries, and a tremendous effort is required to match the performance of the leading aerospace and automotive companies.

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Driving Growth Through Greater Integration

Increasingly diverse oil and gas resources present both technical challenges and constraints for customers but significant opportunities for Schlumberger. Technology and process must be customized just as much for deepwater developments as for unconventional reservoirs, particularly at times of volatility in commodity prices.

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