Schlumberger CEO Predicts Growth in Demand for Oilfield Equipment
Paal Kibsgaard, CEO of Schlumberger, believes demand for drilling services is driven by the need for new technologies in drills and deepwater extraction. Another factor he cites is increasing integration of systems for total solutions.
Growth worldwide for drilling services in 2012 is expected to be around 12.1%, while North America will see less, around 6%. There is no reason to expect anything different for the foreseeable future. That is the conclusion of Paal Kibsgaard, CEO of the oilfield services company Schlumberger, speaking at the Barclay’s CEO Energy Conference in New York on September 5, 2012. If true, it is easy to infer demand for parts and systems for the oil patch will also continue to grow.
Faster, reliable drilling
While operating rigs have doubled since 2002, new reservoirs of energy are deeper, with higher pressures and temperature. There is more horizontal drilling as well. At the same time, more off shore rigs in far deeper waters are also increasing. In this environment, Schlumberger sees opportunity. Companies that deliver equipment that deliver quality, efficiency (and target depth) will do well by meeting these demands. “We are doing this by taking a much more scientific approach to the drilling process, aiming to optimize the entire drilling system rather than just the individual components,” wrote Kibsgaard in his prepared remarks.
Delivering optimized drilling in today’s environments means delivering systems that drill faster, safer, and where needed. More reliable drilling tools with better maintenance is one key element. “Our ultimate goal is to drill each hole section in one run, thereby eliminating non-productive time linked to downhole tool failures,” he wrote. Increasing penetration with faster rock crushing and removal is also important. This means better drill bits and better piping. They will also employ predictive engineering models that reduce lost energy in the drill string.
Unmet Deepwater Challenges
“We estimate over 200 new deepwater fields will come online in the next 4 years, and that by 2020 there will be more than 11,000 subsea wells in operation worldwide,” wrote Kibsgaard. He also remarked that the industry is still not able to create subsea development and processing systems that can maximize production and reserves throughout the lifespan of a deepwater field. Handling wax, scale, gas, and water along with insufficient pressure support are all challenges that represent opportunity for oilfield supply companies like Schlumberger. He predicts the solution is extraction systems that optimize the entire production from optimizing the reservoir pore space to exporting the oil or gas for market.
This means optimized systems of submersible pumps, smart completion strings, flow control valves, and gauges.
The full presentation can be found here.