SLB and TotalEnergies Ink 10-Year Digital Solutions Partnership
SLB SLB, an American oilfield services company, and TotalEnergies TTE have announced a decade-long partnership. This collaboration is aimed at co-developing scalable digital solutions to enhance access to energy resources with improved performance and efficiency. It should help address key challenges across the energy value chain, including carbon capture, utilization and sequestration.
Combining Digital and Domain Expertise
The partnership will integrate advanced digital capabilities, such as artificial intelligence (AI), with new and existing applications on SLB’s Delfi digital platform, adhering to the Open Group’s OSDU Technical Standard. By combining their digital and domain expertise, SLB and TotalEnergies aim to accelerate the development and deployment of digital solutions at scale, benefiting both TTE’s global operations and SLB’s worldwide customer base.
Rakesh Jaggi, president of SLB’s Digital & Integration business, emphasized the significance of collaboration and knowledge sharing within the industry. He highlighted that the partnership is aimed at merging the expertise of both companies to speed up the development and implementation of new digital capabilities that will benefit the entire sector.
Focus on Subsurface Digital Solutions
Initially, the partnership will focus on subsurface digital solutions for reservoir engineering and geoscience modeling and interpretation, leveraging Delfi™ on-demand reservoir simulation. These processes will be accelerated and automated using AI and real-world learnings from both companies.
Namita Shah, president of OneTech at TotalEnergies, emphasized the innovative potential of the partnership. She noted that the collaboration is aimed at developing cutting-edge next-generation software, digital applications, and new algorithms for geoscience. These advanced modeling technologies should help enhance the analysis of geological reservoirs and basins in the Oil & Gas sector, aiding in emission reduction and advancing geological carbon storage.
A Vision for the Future
This collaboration between SLB and TotalEnergies highlights the companies’ commitment to advancing digital technologies to unlock new energy resources and improve efficiency. By focusing on AI-driven solutions and real-world data integration, the partnership is expected to create significant advancements in the energy sector, particularly in reducing emissions and enhancing geological carbon storage capabilities.
The collaboration also marks a significant step toward the digital transformation of the energy industry, leveraging the strengths of both companies to create a more sustainable and efficient future for energy exploration and production.
Zacks Rank & Other Key Picks
Currently, SLB carries a Zack Rank #2 (Buy).
Investors interested in the energy sector may look at a couple of other top-ranked stocks like Sunoco LP SUN and SM Energy Company SM. While Sunoco sports a Zacks Rank #1 (Strong Buy), SM Energy carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of B.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.69. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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