Halliburton sees technology as the key to a low carbon energy futureNov 02, 2021 by Energy Connects
Jeff Miller, Chairman, President and CEO of Halliburton talks exclusively to Energy Connects during its launch day about Halliburton's energy strategy moving forward and how technology will be key to a low carbon energy future.
What is Halliburton’s energy strategy going forward?
We are committed to help customers satisfy the world’s demand for affordable and reliable energy provided by oil and gas – in a more effective, efficient, safe, and ethical manner – while minimising environmental impact.
The unfolding economic and demand recovery is headed in the right direction, and we plan to thrive by executing our five key strategic priorities:
• Drive profitable growth internationally: We expect our strong international business to continue its profitable growth as activity increases throughout the coming years.
• Maximise value in North America: We believe that Halliburton's leadership and strength in North America allows us to take advantage of positive market dynamics and deliver
our strategic priority to maximise value in this market.
• Accelerate and integrate digital technologies: Through Halliburton 4.0, our digital framework, we are accelerating deployment and integration of digital technologies across our value chain – both for us and our customers.
• Improve capital efficiency: We drive capital efficiency through research and development, capital allocation and operational design to reduce our CAPEX profile. This is consistent with our goal to deliver strong and sustainable free cash flow to shareholders. As the market recovery unfolds, our investment in the digitalisation of our tools and processes – together with materials science and design advancements – will improve our capital efficiency.
• Advance cleaner, affordable energy: We are also executing our strategic priority to advance cleaner, affordable energy and to support sustainable energy advancements using innovation and technology to reduce the environmental impact of producing oil and gas.
What impact did COVID-19 have on Halliburton?
While clearly a difficult time for our employees, their families, and the entire world, it gave Halliburton an opportunity to accelerate several multi-year strategies into 2020, resetting our earnings power for the long term. We took advantage of the time to fundamentally change the way we work and redesign how we deliver our services even better while at a lower cost.
Despite COVID, our Halliburton team successfully increased the breadth and depth of digital offerings – accelerating the deployment, integration, and adoption by our customers that reframed project economics through greater efficiencies and improved decision making. We also drove greater differentiation for our services as a result of delivering a record number of new technology projects. Finally, we leveraged digital solutions to reduce non-productive time and improve labour and asset efficiency.
Thanks to the resilience, commitment, and execution culture of our Halliburton team, we delivered historic bests in all our key safety and service quality metrics.
What is Halliburton doing in the energy transition space?
First – let’s define how we view the future. We see the demand for oil and gas growing and believe it will remain steady long into the future, and the transition to using alternative energy sources will take place in parallel resulting in a sustainable energy future. Any energy transition requires a significant amount of hydrocarbons to support population growth and the basics to live a healthier and better life like electricity, clean water, food, jobs and more. We see providing effective oil and gas services as part of our role in the energy transition and have a multi-prong approach to achieve our sustainability goals.
Halliburton Labs is our long-term investment in cleaner and affordable energy. Our labs give early-stage technology companies in the clean energy space, access to our world-class facilities, technical and scientific expertise, and business network. It is a collaborative environment where entrepreneurs, academics, investors, and industrial labs come together to advance cleaner, affordable energy.
Over the near and medium term, we are setting science-based targets to achieve 40 percent reduction in Scope 1 and 2 greenhouse emissions by 2035 from the 2018 baseline. This is consistent with our goal to reduce the carbon footprint and environmental impact of our operations. We also are using sustainability labels to provide customers with information to address decarbonising their legacy production base. These labels allow customers to compare our products for their sustainability impacts, like carbon emissions, water use and noise.
Playing an active role in the energy industry is integral to who we are, and we see more opportunities to continue doing what we do best.
How can technology help accelerate a lower carbon future?
Technology is the basis for all advancement in our industry. We invest heavily in technology and believe transitioning to a lower carbon future requires technology to balance the trade-off between carbon, cost, and convenience.
Our investments include digitalisation, technologies like advanced sensors, artificial intelligence and cloud, as well as technologies to drive automation and virtual remote operations that accelerate both our customers and our own lower carbon energy goals, and then ultimately contribute to an energy transition.
We are also making meaningful gains by lowering the emissions profile of our technologies, which includes drilling wells faster, reducing the number of days a diesel-power rig is on location, and deploying grid-powered electric fracturing equipment. We are also providing enabling technologies for clean energy development, like geothermal and carbon capture utilisation and storage.
I have full confidence that through creative thinking, innovative technology, and our execution culture, we will meet our goals resulting in a more sustainable, lower carbon future.
What is Halliburton's digitalisation journey for the future in the energy sector?
We believe that digital is beginning of the fourth industrial revolution – reducing capital, cost, and making all things more productive.
We approach digital through a lens of open architecture, which enables integration between Halliburton and third-party technologies. One that solves real business challenges and one that involves close collaboration with our partners. Our digital journey, called Halliburton 4.0 as a nod to the fourth industrial revolution, is transforming the way we work to make a quantum leap in productivity. Spanning subsurface, well construction, reservoir and production and enterprise, Halliburton 4.0 has the potential to structurally lower costs, shorten the time to first oil, increase optionality in exploration and production and enhance performance across the entire value chain.
More specifically, we see digital manifesting in three ways – for our customers, smarter tools, and internal processes. For our customers, our software process solutions improve reservoir recovery, production, field planning and operations. We also have smarter, better-integrated, virtually automated tools for both our operations and customers. And finally, digital drives substantially better efficiency inside of Halliburton.