Slb Limited · NYSE:SLB
Slb — Schlumberger — 40th Annual Howard Weil Energy Conference (March 2012)
21 slides from Slb's conference presentation, Mar 26, 2012
Slide 1: Howard Weil Conference Introduction
Exhibit 99 HOWARD WEIL Thank you and good morning ladies and gentlemen. I would like to start by thanking Howard Weil and Bill Sanchez in particular for the invitation to speak at this conference. It is an honor for me to be here today and continue the tradition of Schlumberger’s presence at this ev
Slide 2: Macroeconomic volatility and GDP outlook
HOWARD WEIL In the past three years, our industry has seen significant volatility. In 2009, we saw the largest ever year-on-year fall in global energy demand, followed in 2010 by the largest recovery ever seen. In 2010, the Deepwater Horizon incident led to the drilling moratorium in the Gulf of Mex
Slide 3: Long-term energy demand and role of gas
HOWARD WEIL Looking further out, fossil fuels will continue to play a leading role in the global energy picture in the coming decades, with oil and natural gas still expected to supply fifty percent of primary energy demand in 2035. While oil demand is expected to grow around 1% per year going forwa
Slide 4: Oil supply outlook
HOWARD WEIL Looking at oil supply, the aging non-OPEC production base continues to see output challenges at the same time as large projects in general are facing delays. On the positive side, the recovery in Libya has been faster than expected and growth in North American shale liquids production, a
Slide 5: Natural gas regional markets
HOWARD WEIL Looking at natural gas, we see three regional markets with quite different supply, demand and price trends. In the US, production growth from unconventional gas coupled with mild winter weather has driven storage levels to record levels, and sent prices to a 10-year low, leading to a sub
Slide 6: 2012 oilfield services market outlook
HOWARD WEIL Translating this macro picture into the outlook for our industry, there are still short-term uncertainties around E&P spend and activity, linked to global financial market conditions and potential geopolitical events. In the international markets, we indicated in our Q4 call that we see
Slide 7: Leadership in reservoir characterization
HOWARD WEIL Schlumberger is today the clear industry leader in reservoir characterization, with a technology offering ranging from high-end seismic, wireline and well testing services, to an integrated earth modeling software platform and the industry’s largest community of petro technical experts.
Slide 8: Exploration cycle and reserve replacement
HOWARD WEIL For an industry that lives off a non-renewable resource, our ability to replenish the reserve base in line with production, is critical. Following years of under-investment in exploration, we have seen the start of a new exploration cycle in the last year, and based on the recent growth
Slide 9: De-risking exploration with integrated workflow
HOWARD WEIL So what can be done to improve the performance of the industry’s exploration efforts? In simple terms, the technical challenges of exploration all revolve around the understanding of trap, reservoir, seal and charge. If all these elements are in place for a prospect, success is likely. I
Slide 10: New generation seismic streamer
HOWARD WEIL While our industry leading Q-technology streamer measures single component, single sensor data, our new generation streamer is designed to acquire four-component, single sensor data, which allows us to measure the reflected wave in much more detail, including its direction. Streamer sens
Slide 11: Unconventional shale development inefficiencies
HOWARD WEIL Let’s now move to unconventionals, where our shale reservoir workflow continues to help our customers optimize their shale developments. The standard industry approach to shale developments in North America does not factor in the large variations in shale quality. Instead, the industry h
Slide 12: Shale reservoir workflow and Marcellus result
HOWARD WEIL The shale reservoir workflow uses seismic, cores and petrophysical data to build three-dimensional reservoir models. These are capable of predicting variations in shale reservoir quality, initially helping our customers to pick the best well locations on their acreage. When coupled with
Slide 13: Drilling Group
HOWARD WEIL Let me now shift to the Drilling Group. Following the Smith and Geoservices transactions, we have the industry’s most complete drilling portfolio, with leadership positions in most of the markets in which we operate. This integrated technology offering has wide applications in both land
Slide 14: Deepwater rig activity and drilling integration
HOWARD WEIL The Deepwater rig activity is today at an all-time high, with 24 rig years added in 2011 and another 34 forecasted to come in 2012. We estimate that over 200 new deepwater fields will come online in the next 4 years, so growth in deepwater activity is set to continue. With spread rates c
Slide 15: Angola deepwater de-risking example
HOWARD WEIL Following the Deepwater Horizon incident, the ability to de-risk drilling operations has also grown in importance. The better we understand both what we are drilling through and what we are about to drill through, the better we can manage the associated drilling risks. In a deepwater pro
Slide 16: Production Group
HOWARD WEIL I’d now like to turn to our Production Group which covers the Pressure Pumping, Well Intervention, Completions, Artificial Lift and Production Management product lines. Although the primary reason for the Smith and Geoservices acquisitions were to fulfill our vision of fully integrated a
Slide 17: Production management projects
HOWARD WEIL Through our IPM product line, we have provided project management services to our customers for more than 15 years, and we have been engaged in production management services since 2004, through long-term projects such as Bokor in Malaysia and Casabe in Colombia. Our success in these ini
Slide 18: Hydraulic fracturing market
HOWARD WEIL Let us then switch to hydraulic fracturing, which has been one of the fastest growing parts of the oilfield services industry in recent years, driven by the shale activity in North America, that has seen a continuous increase in service intensity and in the amount of horsepower, water an
Slide 19: HiWAY fracturing technology
HOWARD WEIL Our first generation engineered fluid system that achieves more with less, is our HiWAY technology. Conventional fracturing techniques aim at creating a continuous proppant pack within the hydraulic fracture. The HiWAY technology, on the other hand, opens channels of very high conductivi
Slide 20: Frac Fluid Delivery model
HOWARD WEIL Building on our already unique technology position with HiWAY, we are also looking to augment our offering with new business models, to expand the market uptake of HiWAY and other future fracturing fluid systems. One example of this direction is the Frac Fluid Delivery model recently int
Slide 21: Conclusion and outlook
HOWARD WEIL Ladies and gentlemen, I have laid out the premise for growth in oilfield services, and have shown through examples how technology can respond to a number of current industry challenges. The medium term outlook for the oil and gas industry remains positive driven by the narrow cushion of
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