AI is the X factor of digital transformation in the energy industry, says SLB CEO Olivier Le Peuch
Summary
TLDRIn this interview, Olivier Le Peuch, CEO of SLB, discusses the company's position in the global energy market amidst geopolitical tensions and economic uncertainty. He highlights SLB's commitment to sustainability and the transformative impact of AI on the energy industry through their Loomi platform. Despite a stock downturn, Le Peuch expresses optimism about the company's growth, emphasizing its market position, international presence, and alignment with digital and decarbonization trends. He also addresses SLB's operations in Russia, stating that they are minimal and focused on employee safety.
Takeaways
- 🕒 The discussion spans 16 hours, 39 minutes, and 8 seconds, indicating a comprehensive conversation.
- 🌐 The guest, Olivier Le Peuch, CEO of SLB, addresses the global energy market and geopolitical hotspots.
- 🤖 AI is highlighted as a transformative 'X factor' in the energy industry, with SLB positioning itself as an AI player through the Loomi platform.
- 📉 SLB's stock has experienced a downturn, being down 20% for the year and 32% over the last year, which Barrons suggests is an opportunity for reevaluation.
- 📈 Despite stock performance, SLB is committed to growth, increasing cash returns to shareholders, and expanding margins.
- 🌐 SLB's international market strength and alignment with digital and decarbonization trends are emphasized as key to its future.
- 🔗 The Loomi platform is introduced as a means to leverage AI for efficiency, innovation, and operational transformation in the energy sector.
- 📊 The industry's data-rich environment is a unique asset, with AI and deep learning being used to extract insights and optimize operations.
- 🌱 SLB's commitment to sustainability and decarbonization is a strategic focus, aligning with global trends and customer expectations.
- 🏛️ The geopolitical context, including SLB's operations in Russia amidst the invasion of Ukraine, is discussed, with SLB clarifying its stance and operations.
Q & A
What is the current status of SLB's stock performance?
-SLB's stock has been down 20% for the year to date and 32% over the last year, which Barrons suggests might be due to a market beat down.
What does Olivier Le Peuch attribute the stock downturn to?
-Olivier Le Peuch suggests that the stock downturn is due to uncertainty in economics, impacting the demand outlook and industry cycle, despite a favorable investment environment.
What is SLB's strategy to grow and maintain its market position?
-SLB is poised to grow by continuing to commit cash to increase returns to shareholders, expanding margins, and aligning with market, international technology, digital, and decarbonization trends.
How does AI fit into SLB's plans for the energy industry?
-AI is considered the 'X factor' for SLB, set to transform the way they provide services, planning, and operations by unlocking efficiency and innovation.
What is the Loomi platform and how does it relate to AI?
-The Loomi platform is SLB's digital event and platform that showcases AI's role in the industry, connecting AI tools like deep learning and generative AI to operational data for insights and decision-making.
How does SLB utilize data within its industry?
-SLB's industry is data-rich, and they use AI to connect and analyze this data, leading to autonomous operations, automation, and optimization, enhancing performance and efficiency.
What is the significance of the Loomi platform announcement?
-The Loomi platform announcement signifies SLB's commitment to digital transformation and AI adoption, aiming to provide a platform for customers to leverage AI for more efficient operations.
What is SLB's stance on geopolitics and its international operations?
-SLB has a clear stance on geopolitics, focusing on the safety and security of its people and adhering to international standards, as evidenced by their operations in Russia.
How has SLB responded to the Financial Times' report on its operations in Russia?
-SLB has been transparent, publishing FAQs on their website, and has stated that their revenue in Russia is small and diminishing, focusing on safety and security without expanding operations.
What is the current state of SLB's operations in Russia?
-SLB's operations in Russia are ongoing but not expanding, with a focus on safety and security, and a diminishing revenue stream.
How does SLB's commitment to sustainability align with its international operations?
-SLB's commitment to sustainability is integral to its international operations, ensuring that their practices and technologies are aligned with global decarbonization trends.
Outlines
📈 CEO Interview on Energy Market and AI Innovation
In this segment, the CEO of SLB, Olivier Le Peuch, discusses the current state of the global energy market, geopolitical challenges, and the transformative role of AI in the industry. Despite the company's stock being down 20% for the year and 32% over the last year, Le Peuch expresses optimism, attributing the downturn to economic uncertainty and market cycles. He emphasizes SLB's strengths in international markets, digital capabilities, and commitment to sustainability as key drivers for future growth. The conversation shifts to the company's AI platform, Loomi, which Le Peuch describes as the 'X factor' for digital transformation in the energy sector, focusing on efficiency, innovation, and operational change through data analysis and automation.
🌐 SLB's Geopolitical Stance and Operations in Russia
The second paragraph delves into SLB's geopolitical stance, particularly regarding its operations in Russia. In contrast to competitors Baker Hughes and Halliburton, which have withdrawn from Russia following the invasion of Ukraine, SLB has maintained a presence. However, the company has clarified that it will not expand in Russia and that its revenue there is minimal and decreasing. Le Peuch addresses concerns by stating that SLB is transparent about its operations, focusing on the safety and security of its personnel and adhering to international standards and regulations. The discussion highlights the company's commitment to ethical practices and its response to the geopolitical situation.
Mindmap
Keywords
💡Global Energy Market
💡Geopolitical Hotspots
💡AI (Artificial Intelligence)
💡Digital Transformation
💡Decarbonization
💡Stock Performance
💡Investment Cycle
💡International Markets
💡Sustainability
💡Loomi Platform
💡Autonomous Operation
Highlights
Olivier Le Peuch, CEO of SLB, discusses the global energy market and geopolitical hotspots.
SLB is compared to NVIDIA in the 1980s by Barrens, suggesting a reevaluation of the stock.
SLB's stock has declined by 20% YTD and 32% over the last year, raising questions about market perception.
Le Peuch attributes the stock's performance to economic uncertainty and industry cycles.
SLB remains committed to increasing cash returns to shareholders despite market conditions.
The company is poised for growth, with a focus on international markets, digital transformation, and sustainability.
AI is identified as a transformative 'X factor' in the digital industry by SLB.
The Loomi platform is introduced as a key AI tool for the energy industry.
AI is being used to unlock efficiency and innovation in the energy sector.
SLB's industry is data-rich, with AI helping to extract insights and optimize operations.
The Loomi platform aims to provide autonomous operation and automation in the energy industry.
SLB's customers are aligning with the company's digital and decarbonization strategies.
Geopolitical issues are affecting SLB's international operations, including in Russia.
SLB's stance on operations in Russia is one of maintaining safety and security without expansion.
Financial Times reports on SLB's job advertisements in Russia despite other companies' exits.
SLB is clear about its operations in Russia, with a focus on safety and compliance.
Transcripts
16 HOURS, 39 MINUTES AND 8
SECONDS.
>> CAN'T GET HERE FAST ENOUGH.
>>> ALL RIGHT.
OUR NEXT GUEST JOINS US TO TALK
ABOUT THE GLOBAL ENERGY MARKET.
GEOPOLITICAL HOT SPOTS AND HOW
AI PROMISES TO CHANGE THE ENERGY
INDUSTRY.
WANT TO WELCOME OLIVIER LE PEUCH
CEO OF SLB, THE WORLD'S LARGEST
OIL FIELD SERVICES COMPANY.
SIR, THANK YOU FOR BEING WITH US
TODAY.
>> THANK YOU FOR HAVING ME.
>> LET'S TALK A LITTLE BIT ABOUT
THE SHOUTOUT YOU ALL GOT FROM
BARRENS THIS PAST WEEK.
BARRENS LOOKED AT YOU AND SAID
YOU ARE -- LIKE THE NVIDIA OF
THE 1980s.
SAID THAT IT'S WORTH TAKING
ANOTHER LOOK AT THIS STOCK.
BUT A BIG PART OF THE REASON
THEY SAID THAT IS BECAUSE THE
STOCK IS DOWN 20% FOR THE YEAR
TO DATE, DOWN 32% OVER THE LAST
YEAR.
AND THINKS THAT THERE'S
DEFINITELY SOME BEAT DOWN
ASPECTS TO IT.
WHY DO YOU THINK THE STOCK HAS
BEEN DOWN?
>> I THINK MANY REASONS FOR
THIS.
UNCERTAINTY ON THE ECONOMICS IS
PUTTING DEMAND OUTLOOK THAT THE
CYCLE, THE INDUSTRY, THE BACK
DOOR OF INVESTMENTS INCREASING
IS STILL HIGHLY FAVORABLE IN
VERY UNSTEADY ENVIRONMENTS,
STRENGTHS IN INTERNATIONAL
MARKETS, DIGITAL THAT WE CAN
TALK ABOUT LATER AND COMMITMENT
TO SUSTAINABILITY AND COMMITMENT
TO SUSTAINABILITY.
SO WE ARE STILL VERY POISED TO
GROW GOING FORWARD.
CONTINUE TO COMMIT CASH INCREASE
TO RETURNS GIVING BACK TO OUR
SHAREHOLDERS.
COMMITTED TO NEXT YEAR AND WE
STILL HAVE SIGHTS TO CONTINUE TO
EXPAND MARGIN, HIGHLY FAVORABLE
FOR MARKET POSITION,
INTERNATIONAL TECHNOLOGY,
DIGITAL, AND DECARBONIZATION,
TRENDS WE ARE VERY WELL ALIGNED
WITH.
>> OKAY.
LET'S TALK A LITTLE BIT ABOUT
SOME OF THOSE TRENDS YOU JUST
MENTIONED.
AI, YOU'RE NOW AN A-I PLAY, I
GUESS W THE LOOMI PLATFORM.
WHAT IS THAT?
>> ABSOLUTELY.
WE BELIEVE THAT AI IS THE X
FACTOR WE CALL IT, X FACTOR OF
DIGITAL INDUSTRY.
CHANGING THE WAY WE PROVIDE,
PLANNING PROVISIONS, ALL ASPECTS
IS TRANSFORMATIVE.
AND I THINK THIS WEEK WE HAVE
BEEN INVITING MORE THAN 1,000
CUSTOMERS AND PARTNERS HERE IN
MONACO TO DO THIS -- FIRST AND
LEADING DIGITAL EVENT IN OUR
INDUSTRY.
THE NUMBERS ARE SHOWING REALLY
AROUND WHAT WE CAN -- DIGITAL,
BEING CREATED BY CUSTOMERS USING
OUR PLATFORM, USING THE
PLATFORMS OF OUR PARTNERS.
BUT I THINK WHAT IS UNIQUE THIS
YEAR IS AI IS THERE, THE TIME IS
NOW FOR AI TO UNLOCK EFFICIENCY,
TO UNLOCK INNOVATION AND TO
CHANGE THE WAY WE OPERATE IN THE
INDUSTRY.
>> HOW DOES IT DO THAT?
I DON'T KNOW THAT I UNDERSTAND
HOW ANY OF THAT WORKS?
>> SO, IT WORKS SIMPLY -- WE
USE -- WHAT IS UNIQUE ABOUT OUR
INDUSTRY?
OUR INDUSTRY HAS BEEN SWIMMING
IN DATA.
AND USING SCIENCE TO EXECUTE ITS
WORK FORCE, FACE, DRILLING,
PRODUCTION, A LOT OF DATA.
NOW WHAT WE ARE CONNECTING, WE
ARE CONNECTING THE AI TOOL BOX,
THE DEEP LEARNING, THE
GENERATIVE AI TO THE TRENDS, TO
THE ATTRIBUTES OF THE
OPERATIONAL DATA AND EXTRACTING
INSIGHTS, EXTRACTING DECISIONS
FOR OUR CUSTOMERS AND STARTING
TO TOUCH AUTONOMOUS OPERATION,
AUTOMATION AND OPTIMIZATION.
THAT'S WHAT IS CHANGING.
WHILE USING THE TOOL BOX OF OUR
PARTNERS AND WE ARE CONNECTING
THE DATA FOR OUR CUSTOMERS TO
GIVE THEM INSIGHTS AND GO BEYOND
THIS TO GIVE AUTONOMOUS
OPERATION AND TO AUTOMATE AND TO
CHANGE THE PERFORMANCE
EFFICIENCY AND START TO DO MORE
AND MORE OPERATION, MORE
EFFICIENT OPERATION AND LESS
CARBON OPERATION.
AND ALL OF THE CUSTOMERS THE
IOCs, THE NATIONAL COMPANY, THE
WHOLE GATHERING HERE, THEY ARE
REALLY ALIGNED.
THEY HAVE SEEN THE LIGHTS.
THEY ARE WILLING TO ADOPT.
AND THEY'RE LOOKING FOR
PLATFORM, HENCE THE LOOMI
PLATFORM ANNOUNCED YESTERDAY.
>> OLIVIER, YOU MENTIONED
GEOPOLITICS AND YOUR STRENGTH
INTERNATIONALLY.
IN AUGUST, THE FINANCIAL TIMES
REPORTED THAT THEY HAD LOOKED
INTO YOUR OPERATIONS IN RUSSIA,
WHICH YOU POINT OUT THAT YOUR
TWO MAIN RIVALS BAKER HUGHES AND
HALL BURTON BOTH PULLED OUT OF
RUSSIA AFTER THE INVASION OF
UKRAINE.
YOU ALL STAYED BUT SAID YOU
WOULD NOT BE EXPANDING THERE AT
THE TIME.
THE FINANCIAL TIMES IN AUGUST
SAID THAT THEY IDENTIFIED MORE
THAN 1,000 JOB ADVERTISEMENTS
POSTED BY THE COMPANY IN RUSSIA
FOR ROLES RANGING FROM DRIVERS
TO CHEMISTS TO GEOLOGISTS.
CAN YOU EXPLAIN WHAT YOUR
OPERATIONS ARE IN RUSSIA?
>> WE HAVE BEEN CLEAR.
WE HAVE BEEN PUBLISHING FAQ ON
OUR WEBSITES, DISCLOSING THIS
ARTICLE.
AND REVENUE IS VERY SMALL AND
DIMINISHING OVER TIME.
WE'RE FOCUSSED ON THE SAFETY,
THE SECURITY OF OUR PEOPLE
OPERATING THERE.
AND TO REACH OR EXCEED ALL
INTERNATIONA
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