Boston, MA 06/09/2014 (wallstreetpr) – Schlumberger Limited. (NYSE:SLB) introduced the GeoSphere technology for reservoir mapping along with the drilling services. The new process is a real time interpretation technique that tells the features of surface bedding and fluid contacts at the reservoir side so that it enables the landing operations, mapping of boundaries and steering capabilities.
Reason for new technology
Higher capital spending to increase the production capacity continues remain a challenging factor for the Exploration and Production (E&P) industry. In last 10 years, the global production of oil has increased by 15% with considerably high capex of more than 400%. So, the increasing development costs with flat growth in production continue to put significant pressure on profitability as well as cash flow generation.
So, the technology innovation will transform the E&P activities and improve the performance by reducing the operating expenses. It will provide the complete mapping of the drilling service prior to exploration.
Long-term benefit
The GeoSphere technology facilitates the customers to map their investigation that will help the downhole measurement analysis for drilling and reduce the risk of drilling and eliminate pilot holes. It also increases the exposure of reservoir to map the positioning of wells within the target areas of the reservoir.
The technology already tested on more than 140 wells globally, including North America, Europe, South America, Russia, Australia and Middle East. For instance, the GeoSphere technology used successfully to optimize the reservoir entry up to 300 ft in the North Sea, acquire multi-deep water reservoir sections in Offshore Brazil and also increased the reservoir net to gross ratio to 0.96 from 0.45 in Northern Europe.
Conclusion
The technology transformation has already made an impact on the financial performance of Schlumberger Limited. (NYSE:SLB). As a result, the drilling group revenue grew at 11% per year and improved the operating margin significantly in last 3 years. Therefore, Schlumberger continues to focus on innovative technology that not only increase the operational efficiency but also improve its financial performance.
