AI is the X factor of digital transformation in the energy industry, says SLB CEO Olivier Le Peuch

Summary

In 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.