In an interview, SLB CEO Olivier Le Peuch discussed the challenges facing the energy market, including economic uncertainties and geopolitical factors, while emphasizing the transformative role of AI in driving digital transformation within the industry. He introduced the Loomi platform to enhance operational efficiency and highlighted SLB’s commitment to sustainability and innovation, despite ongoing challenges in the market.
In a recent interview, Olivier Le Peuch, CEO of SLB, the world’s largest oil field services company, discussed the current state of the global energy market, the impact of geopolitical factors, and the transformative role of artificial intelligence (AI) in the energy industry. He acknowledged that SLB’s stock has faced challenges, being down 20% year-to-date and 32% over the past year, attributing this decline to economic uncertainties and fluctuating demand outlooks. Despite these challenges, Le Peuch expressed confidence in the company’s growth potential, emphasizing their commitment to sustainability and returning value to shareholders.
Le Peuch highlighted the significance of AI in the energy sector, referring to it as the “X factor” of digital transformation. He introduced the Loomi platform, which aims to leverage AI to enhance operational efficiency and innovation within the industry. SLB recently hosted a major digital event in Monaco, gathering over 1,000 customers and partners to showcase the potential of digital technologies and AI in revolutionizing energy operations. He stressed that the time is ripe for AI to unlock new efficiencies and fundamentally change how the industry operates.
The CEO explained that the energy sector has been inundated with data, and SLB is now integrating AI tools, including deep learning and generative AI, to extract valuable insights from this data. By connecting operational data with AI capabilities, SLB aims to facilitate autonomous operations and optimize performance, ultimately leading to more efficient and lower-carbon energy production. Le Peuch noted that many customers, including international oil companies and national firms, are eager to adopt these innovative solutions.
Addressing geopolitical concerns, Le Peuch discussed SLB’s operations in Russia, particularly in light of the ongoing conflict in Ukraine. While competitors like Baker Hughes and Halliburton have exited the Russian market, SLB has maintained a presence but clarified that they are not expanding their operations there. He emphasized that the revenue generated from Russia is minimal and decreasing, and the company prioritizes the safety and security of its personnel in the region.
Overall, Le Peuch’s insights reflect a forward-looking perspective on the energy industry, emphasizing the critical role of AI in driving digital transformation and operational efficiency. He remains optimistic about SLB’s ability to navigate current market challenges while aligning with sustainability trends and leveraging technological advancements to enhance performance in the energy sector.