SLB Limited · NYSE:SLB
SLB — Schlumberger — 2018 Wells Fargo West Coast Energy Conference
11 slides from SLB's conference presentation, Jun 12, 2018
Slide 1: Patrick Schorn, 2018 Wells Fargo West Coast Energy Conference
Patrick Schorn Executive Vice President, Wells 2018 Wells Fargo West Coast Energy Conference San Francisco, June 12, 2018
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of the federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “believe,” “plan,” “estimate,” “intend,” “anticipate,” “sh
Slide 3: Oil Market Fundamentals Drive Prices Higher
Oil Market Fundamentals Drive Prices Higher Upstream Capex Oil Production World Liquids Demand Brent Forward Curve ($B) (MMbpd) (MMbpd) ($) -40% 2.1% 1.5% $ 700.0 98.0 100.2 101.7 80 92.5 98.1 US LTO +51% US Other +12% 75 Russia +5% 70 420.0 OPEC ex. Saudi Arabia +7% 65 Saudi Arabia 60 $8 Rest of Wo
Slide 4: E&P Investment Levels Remain Below Medium-Term Needs
E&P Investment Levels Remain Below Medium-Term Needs kbbl/d 2.5 Algeria 2.0 Angola 1.2 Azerbaijan 3.0 Brazil 5.0 China 2.0 1.0 2.5 4.0 1.5 0.8 2.0 1.5 3.0 1.0 0.6 1.5 1.0 2.0 0.4 1.0 0.5 0.5 0.2 0.5 1.0 0.0 0.0 0.0 0.0 0.0 2011 2013 2015 2017 2011 2013 2015 2017 2011 2013 2015 2017 2011 2013 2015 20
Slide 5: Project Sanctions Trend To Reduced Size and Lower Risk
Project Sanctions Trend To Reduced Size and Lower Risk Sanctioned Reserves by Project Type Average Project* Size by Sanction Year (Bnboe) (MMboe) 537 2015 2016 2017 481 376 4.8 Bnboe 13.0 Bnboe 12.1 Bnboe Greenfield Brownfield 2015 2016 2017 5 * Excludes significant gas projects Sources: Wood Macken
Slide 6: Revenue and Customer Mix Evolution
Revenue and Customer Mix Evolution Revenue by Customer Revenue by Geography % 2011 2017 100 North America IOC IOC NOC NOC International Independent Independent 0 2011 2012 2013 2014 2015 2016 2017 North America Revenue International Revenue Land / Offshore Land / Offshore % % 100 100 Offshore Offsho
Slide 7: Expanding Integrated Services
Expanding Integrated Services 2014 2017 % 100 SPM Performance-based 20% 24% IDS / IPS Multiple services ISM + Multiple services 0 2014 2015 2016 2017 Integrated services contribution growing Performance-based business expanding 7 Note: Integrated Services includes SPM, IDS, IPS, ISM and revenue asso
Slide 8: Integrated Drilling Track Record
Integrated Drilling Track Record ▪ First IPM* project in Latin America 20 years ago ▪ 12,700 wells ▪ 25 NOC, 6 IOC, and Independents ▪ 80% land, 20% offshore 8 * Integrated Project Management
Slide 9: Saudi Aramco LSTK Project Update
Saudi Aramco LSTK Project Update Oil (128 wells) Oil (70 wells) Gas (146 wells) ▪ 344* wells over 3 years, plus extensions ▪ +8 additional rigs mobilized in Q2, +6 in Q3, +1 in Q4 2018 Ramp-up ▪ 7 wells drilled YTD 2018 ▪ 70% of rigs operated by Arabian Drilling Company** 1Q18 2Q18 3Q18 4Q18 9 Note:
Slide 10: Integrated Drilling Project Mobilizations Through 2018
Integrated Drilling Project Mobilizations Through 2018 ▪ Operated 59 international rigs in Q1-18 ▪ Mobilizing 30 rigs in Q2-18 ▪ Mobilizing additional 25 rigs in Q3-18 10
Slide 11: Summary
Summary ▪ Oil market balanced by demand growth, supply-side production cuts, and weakness of mature production base. Global supply response increasingly needed. ▪ Positive sentiments reflected in 2018 E&P spending forecasts of 15-20% growth in North America and 5% internationally. High tendering act
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