Schlumberger Sets Net-Zero Goal Including Its Own Emissions

Schlumberger set a net-zero greenhouse gas target that includes its own emissions, a move that sets it apart from rival oilfield services companies with less aggressive climate goals.

The company will zero out its greenhouse gas emissions by 2050, it said Tuesday in a statement. By 2030 it plans to halve its Scopes 1 and 2 emissions -- those produced by Schlumberger or related to the power it consumes -- and to cut by 30% its Scope 3 emissions, which come from the use of its products by customers. The initiative involves minimal reliance on carbon offsets, or credits that allow companies to pay someone else to cut emissions elsewhere.

“Our net-zero target is inclusive of total Scope 3 emissions; this is a first in the energy services industry,” Chief Executive Officer Olivier Le Peuch said in the statement.

The initiative announced by Schlumberger, the biggest oilfield services company, comes as the energy industry faces intensifying pressure from investors to address climate change. Though more companies are announcing net-zero targets, it’s relatively rare for those goals to include emissions from their own operations, as Schlumberger’s does. A plan announced by smaller rival Baker Hughes in 2019 included only Scope 1 and Scope 2 emissions.

Schlumberger has introduced what it calls a Transition Technologies portfolio to assist its customers and the industry with decarbonization efforts. The offerings will help address fugitive emissions and flaring, among other sources of greenhouse gases, the company said.

CEO Le Peuch is also looking to take the dirty engines out of Schlumberger’s oilfield gear, “which has long been a technical challenge in our industry.” The company is offering a totally electric solution from the oil well to the production facility, he said.

“A fully electric production system not only paves the way to complete digital capabilities but to full-electric platforms and plants that can be operated remotely, particularly offshore, where this will be revolutionary,” CEO Le Peuch said, in prepared remarks for the JPMorgan Energy, Power & Renewables conference Tuesday.

©2021 Bloomberg L.P.

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