SLB SLB has entered into an agreement with UAE-based oil giant Saudi Aramco to work on developing digital solutions aimed at reducing greenhouse gas (GHG) emissions. The companies will commercialize these digital solutions and implement them to curb GHG emissions from industrial sectors.
Their plan is to consolidate these solutions into SLB’s digital sustainability platform, as part of the collaboration announced in 2022. SLB’s digital sustainability platform allows industrial companies to easily measure, report and verify (MRV) the emissions caused, thereby allowing these companies to advance their journey toward net-zero emissions.
The platform utilizes data and intelligence to support its customers in ensuring regulatory compliance. It also enables them to work on strategic decarbonization efforts, which include increasing energy efficiency, curbing methane emissions and taking necessary steps to advance carbon capture, utilization, and storage technologies.
SLB highlights the importance of data in promoting emissions transparency and guiding effective decarbonization efforts. Its digital sustainability platform empowers customers to harness the power of data to drive meaningful emission reduction outcomes. SLB aims to increase the range of solutions available by utilizing Aramco’s cutting-edge technologies. The agreement with Aramco outlines a framework for the creation of an array of digital solutions on SLB’s digital sustainability platform.
The development shall involve leveraging Aramco’s internally developed Combined Heat Power (CHP) optimization and Flare Monitoring System (FMS) solutions. While the CHP optimization solution is aimed at increasing energy efficiency, the FMS solution is expected to cut back on field emissions.
The new decarbonization planning solution is expected to aid in projecting emissions and creating simulations to identify effective strategies for mitigating the same. These solutions shall harness the strong security, data management as well as analytical and AI competencies of SLB's digital sustainability platform.
Aramco has been focused on curbing GHG emissions by leveraging its in-house technologies. The agreement with SLB marks a milestone in their partnership, Aramco noted. Through this collaboration, both companies demonstrate their commitment toward reducing GHG emissions. The collaboration also seeks to promote localization by utilizing the regional talent in the Kingdom of Saudi Arabia.
Currently, SLB carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED,TechnipFMC FTI and VAALCO Energy EGY. PEDEVCO presently sports a Zacks Rank #1 (Strong Buy), while TechnipFMC and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. The company stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for FTI in the future.
VAALCO Energy is an independent energy company involved in upstream business operationswith a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
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