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SLB — Schlumberger Business Consulting — LBS Annual Global Energy Summit 2014

13 slides from SLB's conference presentation, Nov 27, 2014

  1. Slide 1: LBS Annual Global Energy Summit: Resources Efficiency and Security

    LBS Annual Global Energy Summit: Schlumberger Confidential Resources Efficiency and Security London, England November 27th, 2014 1 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  2. Slide 2: Energy: an impossible equation?

    Energy : an impossible equation? Provide safe and affordable energy to the world Bn Tons Oil Equivalent 20 Renewables Schlumberger Confidential 15 Hydro Nuclear 10 Coal Gas Presentation 5 Focus Oil and condensate 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 Year Reduce and mitigate impact Fight en

  3. Slide 3: Oil & Gas: end of peak oil?

    Oil & Gas: end of peak oil? 5-YEAR AVERAGE OIL DISCOVERED VOLUME (2P DISCOVERIES) Major contributors of last Bn bbl decade’s discoveries: Onshore and shallow water Oil Deep and ultra-deep water Gas Schlumberger Confidential 55  Brazil, Angola and Kazakhstan 50 45  Iran, China, Russia, 40 Turkmenis

  4. Slide 4: Upstream O&G: the end of an easy ride?

    Upstream O&G: the end of an easy ride? E&P EXPENSE EVOLUTION VS. CRUDE OIL PRICE Bn USD, USD/bbl E&P Expense (1) Crude Oil price (2) Schlumberger Confidential 1,400 140 1,200 120 1,000 100 Oil prices have flattened 800 during the last years but 80 not the expenses 600 60 400 40 200 20 0 0 2004 2005

  5. Slide 5: Oil & Gas companies challenges: what can an MBA do?

    Oil & Gas companies challenges: what can an MBA do? SBC’S VIEW ON COMPANIES INTERNAL CHALLENGES Cash from  Operations Excellence operations  Maximizing production and optimizing OPEX, safely Schlumberger Confidential  Optimize portfolio Capital Efficiency  Ensuring capital discipline and increas

  6. Slide 6: Cash from operations: Production efficiency: management or technical problem?

    Cash from operations Production efficiency: management or technical problem? NORTH SEA PRODUCTION EFFICIENCY MAIN SOURCES OF LOSSES % % of Maximum Production Potential Benchmark Compression train 85% Tanks/ vessels Schlumberger Confidential Wells 80% Power generation & distribution Efficiency is not

  7. Slide 7: Capital Efficiency: mega-projects delays still rising

    Capital Efficiency More companies are doing mega-projects, but delays are still rising E&P COMPANIES SPENDING >$5BN CAPEX PER YEAR AND MEGA-PROJECTS1 DELAYS # of companies; years of delay # of companies Avg. delay (yrs) 35 2.5 Average delay Schlumberger-Private # of companies 30 2.0 25 1.5 20 32 32

  8. Slide 8: Are MBAs capabilities relevant to address O&G project challenges?

    Capital Efficiency Are MBAs capabilities relevant to address O&G project challenges? MAIN CHALLENGES FACED BY COMPANY Normalized % of Survey replies Internal to O&G companies Schlumberger Confidential Safety & environment . Technical & economic challenges 6% 8% People & organisation External stakeho

  9. Slide 9: What can we learn from other industries?

    Capital Efficiency What can we learn from other industries? 1990 Now Schlumberger Confidential Lower costs Faster developments Higher quality Photographs from Renault, Airbus, Ariane Espace, northjersey.com 9 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  10. Slide 10: Talent shortage: Will O&G become the coolest industry?

    Talent shortage Will the Oil & Gas industry become the coolest industry? PTPS PER AGE BRACKET ON A GLOBAL BASIS Percentage of PTPs Schlumberger Confidential Note: Excluding China and oilfield services companies Retirement rate: 20% for 55y-59y, 50% for 60y-64y, 70% for 65y+ Recruitment targeted inpu

  11. Slide 11: Upstream O&G: do not forget the engineers and scientists!

    Talent shortage Upstream O&G : do not forget the engineers and scientists! PTPS BY DISCIPLINE VS. RESERVES AND OPERATED PRODUCTION1 2012, # of PTPs, Reserves in MMboe, Operated Production in kboe/d # of PTPs n3 Oil- Schlumberger Confidential weighted2 R² = 0.96 Reservoir Product & effect Production

  12. Slide 12: In Country Value: why don't we plan ahead?

    In Country Value O&G industry can plan ahead: why don’t we do it for In Country Value? ILLUSTRATIVE EXAMPLE: JOB CREATION IN A SUB- EDUCATION AND TRAINING TIMELINE SAHARAN AFRICAN COUNTRY Cumulative number of people (FTE) Years Craftsmen Engineers Craftsmen Schlumberger Confidential Technicians Oper

  13. Slide 13: MBAs can help solve O&G industry challenges

    MBAs can help solve O&G industry challenges MBA’S POTENTIAL CONTRIBUTION  Operation Excellence Cash from operations  Organizational Behavior Schlumberger Confidential  Project Management Capital Efficiency  Supply chain integration  Leadership development Talent shortage  Project Management 

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