Schlumberger recently announced its commitment to achieve net-zero emissions by 2050. As a company rooted science and engineering, we have drawn a road map to achieve this objective across our entire value chain, including scope 1, 2, and 3 emissions. We have already started along this path in Latin America, particularly in Ecuador. The world economy is forecasted to grow by 40% by 2030—and with no realistic scenario for an immediate transition to non-hydrocarbon energy sources —the energy industry stands at a critical juncture. How will it help address climate change and align with the requirement to reduce carbon emissions by 40% during the current decade and achieve net-zero by 2050, while playing a role in providing the energy to meet the forecasted economic growth? Today, it is no longer a question of how we will address these issues. Rather, it is a new industry imperative that compels a more sustainable approach in developing the planet’s energy resources.
Nearly a century since its founding, with a presence in more than 120 countries, 82 technology centres globally, and more than 12,000 active technological patents, Schlumberger has a history of solving complex energy challenges using science and engineering. As a company, we believe that our future should expand into low and carbon-neutral energy. Given our extensive technology portfolio and domain expertise, we believe that we are uniquely positioned to lead the energy industry as it transitions to a more sustainable model.
We can help our customers achieve their sustainability commitments, meet our own commitment to be net-zero by 2050, and help the communities where we live and work to achieve their pledge to the Paris Agreement, while simultaneously supporting the energy transition and reducing the effects of climate change. To meet the energy demand more sustainably, we must leverage innovation, digital solutions, and knowhow across our entire portfolio. Our strategy focuses on three main elements:
Reduction of emissions in our operations
In 2019, 25% of our emissions were due to our operations. We have already begun to convert facilities to renewable power and will electrify our fleet. Digital and integrated solutions will further accelerate our decarbonization plan.
Schlumberger New Energy
Delivering the necessary emissions reduction will also require lower carbon energy liquids and gases, increased focus on electrification and adoption of new energy carriers. We continue to invest in new energy technology ventures and innovative partnerships in strategic sectors—including hydrogen, lithium, carbon capture and sequestration, geothermal power and geoenergy for heating and cooling buildings.
To help our customers meet their sustainability objectives, we recently introduced our Transition Technologies* portfolio. Aligned with multiple United Nations Sustainable Development Goals, our Transition Technologies portfolio aims to bring about sustainability benefits through eight key attributes: emissions reduction, energy consumption reduction, electrification, surveillance & assessment, hazmat reduction, water stewardship, waste reduction and size reduction.
Deploying our technology will enable our customers to accelerate the industry’s net-zero journey. Including scope 3 emissions, technology-use emissions represent 75% of our total CO2 equivalent footprint and occur when Schlumberger deploys technologies for customers in the field; thus having a direct effect on their scope 1 and 2 emissions.
Our Transition Technology portfolio will serve as an enabler for the industry’s decarbonization efforts. This portfolio was determined by screening conducted by Schlumberger’s engineers that resulted in the identification of more than 100 impact reducing technologies. The portfolio— launched June 2021—will grow through ongoing and continuous assessment of new and existing technologies and by embedding sustainability throughout our research and development processes.
With both sustainability and performance in mind, the Transition Technologies portfolio is divided into five themes that target a wide range of sustainability challenges and opportunities across the value chain:
- Address fugitive emissions
- Minimize drilling CO2 footprint
- Reduce or eliminate flaring
- Full-field development solutions
With 87 years in Ecuador, we have a history of working on sustainable solutions through technology. In 2016, Schlumberger was accredited with the certification “Punto Verde”, issued by the Ministry of Environment. And today, our base in Coca is eco-efficient certified, and we have seven more technologies that also carry the same certification.
In terms of solutions that drive performance and reduce emissions, one example is the Rig Maverick SLR-401 drilling rig, one of two operating in the country. These rigs reduce wellsite pad footprint size by approximately 40% when compared with conventional set ups. As noted in the image on the left, these rigs increase operational efficiency, resulting in decreased energy consumption, improved waste management, and utilization of rainwater by using geomembrane technology.
There are limitless opportunities for technology-driven improvements in sustainability across the entire energy industry…”
Another unique and innovative example is our autonomous gas-handling system. Powered by solar panels and batteries, this fit-for-purpose solution is helping to reduce emissions while also optimizing operational performance. While innovation will help us make significant strides towards a netzero future, these advances must be complemented by incentives to maximize the impact across the value chain. One incentive to help with the development and advancement of sustainable processes and technology solutions would be through operators. This would ensure that projects are evaluated purely on economic factors, but that sustainability impacts are also considered, including social and environmental impact. There would also be a need for government regulations to continuously evolve to meet targets for net-zero emission goals whilst ensuring economic growth, thus creating a sustainable environment for future generations.
There are limitless opportunities for technology-driven improvements in sustainability across the entire energy industry. Through innovation and digital enablement, we will be able to measure and demonstrably reduce our environmental footprint across full operational life cycles and minimize the industry’s impact.
Schlumberger is committed to a net-zero future, and working to do so through collaboration with customers, industry partners, and communities where we live and work. Core to this commitment, we are addressing our own emissions, and we have also introduced our Transition Technologies portfolio to support our customers on their journey. In addition, we are looking to various new energy verticals through our Schlumberger New Energy business. Through these efforts we will play a key role accelerating change and reducing global emissions, while also safeguarding the competitiveness of our industry.