Schlumberger Makes Scope 3 Net-Zero Pledge

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Oil-field services giant Schlumberger has pledged to eliminate its net greenhouse gas (GHG) emissions by 2050, including the so-called Scope 3 variety, as it works to help its oil and natural gas customers reduce their carbon and methane pollution. Under its “road map” announced Tuesday, Schlumberger is targeting a 50% reduction in Scope 1 and 2 (operational) emissions and a 30% drop in Scope 3 (end-use) by 2030, and aims to achieve “net-zero” emissions by 2050. The company said it is already ahead of schedule on a previously set target to cut operational emissions by 30% by 2025. Schlumberger is using 2019 emissions as its baseline for reductions. By comparison, rival Baker Hughes, which also intends to be internally “net zero” by 2050, uses 2012 as a baseline. The targets signal an aggressive push by Schlumberger, the world’s largest oil-field services company, to lead by example in the energy transition and to enable the aspirational emissions goals of a growing number of its customers (OD Jun.10'21). Schlumberger claims it is the first company in the oil-field services sector to make a Scope 3 emissions reduction pledge. It also says its long-term plan puts “minimal reliance” on carbon offsets. “There is a new industry imperative to address climate change while meeting the demand for energy both today and in the long term, sustainably,” CEO Olivier Le Peuch said in a statement. Customer Focus Reducing the emissions of oil and gas operators that hire Schlumberger to perform services is key to the firm’s efforts to reduce its overall emissions profile. It estimates that three-quarters of its baseline GHG footprint comes from the operations of its customers. To counter this, Schlumberger has introduced what it calls its “transition technologies portfolio,” a group of solutions “designed to help customers reduce their Scope 1 and 2 emissions, while simultaneously enabling us to meet our Scope 3 emissions target.” The portfolio includes technologies that will help tackle fugitive methane emissions, reduce natural gas flaring and construction emissions, increase electrification, and provide full-field development solutions. Demand for such technologies appears to be on the rise as more and more upstream operators make their own net-zero pledges. Just this week, US shale giant Devon Energy made a net-zero commitment, joining a short but growing list that includes peers like ConocoPhillips and EOG Resources (OD Jun.21'21). Schlumberger says it has developed a “robust framework” to standardize measurements and benchmark emissions while enabling “better-informed technology selection” during project planning. Old Energy A Schlumberger spokeswoman said the transition technologies portfolio is not associated with Schlumberger New Energy, a unit launched last year to develop and invest in technologies to position the company for growth in areas outside of oil and gas (OD Jun.17'20). The latest group of offerings, which will be spread across multiple segments, addresses the needs of the oil and gas industry specifically, she said. Schlumberger has identified, qualified or is in the process of qualifying more than 100 environmental impact-reducing technologies and solutions within its existing and near-commercial portfolio, according to its website. Its priorities include reducing GHG emissions, reducing energy consumption, electrifying infrastructure and enabling better monitoring of emissions. Luke Johnson, Houston

Exploration, Offshore Oil and Gas, Shale, Corporate Strategy
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