Decision time: Oilfield services is at a crossroads

What does net zero mean for Europe’s oilfield services companies?

01

What’s next for oilfield services?

02

Companies race to innovate

03

Environmental credibility matters

Executive Summary

The global ambition to align with the Paris Agreement is putting immense pressure on the oil and gas sector. The energy transition to renewable energy requires another transition: to a new breed of oilfield services companies.

How will Europe’s oilfield services companies meet this challenge? Where do executives expect to see the greatest opportunities to reinvent themselves? And what will differentiate them from the global pack?

Europe’s oilfield services companies are committed to change

0%

are redefining what their core business should be because of the energy transition

And in the next two to three years they expect the greatest energy transition opportunities to be in:

This new era will be distinguished by four primary characteristics:

To survive, the oilfield services industry will have to innovate. The good news is that innovation and technology are hallmarks of the sector, and companies feel confident in their ability to innovate in:

How companies plan to keep up in the next 12 months:

The majority see sustainability as an opportunity

0%

say that sustainability is a way to differentiate and grow their businesses

0%

say that experience in sustainability gives Europeans an edge in international markets

But will they be able to seize those opportunities?

0%

say they struggle to use renewable energy on-site

0%

say that it is a challenge to decarbonise CO₂ emissions in the transport supply chain

They will have to innovate

Manfred Vonlanthen, CEO of Swire Energy Services, says there are two types of oilfield services companies:

“Some are saying ‘let's just ride into the sunset’ and make as much money as we can for as long as we can, focusing on efficiency, technology and maybe some new business models. Others plan to use the cash they are generating to finance the transition and have some clear targets on how they intend to do this. All this decision-making is starting now, and everything will happen within the next 10 years.”

Which way will your company go?

Decision time: Oilfield services is at a crossroads

What does net zero mean for Europe’s oilfield services companies?

Executive Summary

The global ambition to align with the Paris Agreement is putting immense pressure on the oil and gas sector. The energy transition to renewable energy requires another transition: to a new breed of oilfield services companies.

How will Europe’s oilfield services companies meet this challenge? Where do executives expect to see the greatest opportunities to reinvent themselves? And what will differentiate them from the global pack?

Europe’s oilfield services companies are committed to change

0%

are redefining what their core business should be because of the energy transition

And in the next two to three years they expect the greatest energy transition opportunities to be in:

This new era will be distinguished by four primary characteristics:

To survive, the oilfield services industry will have to innovate. The good news is that innovation and technology are hallmarks of the sector, and companies feel confident in their ability to innovate in:

How companies plan to keep up in the next 12 months:

This new era will be distinguished by four primary characteristics:

0%

say that sustainability is a way to differentiate and grow their businesses

0%

say that experience in sustainability gives Europeans an edge in international markets

This new era will be distinguished by four primary characteristics:

0%

say they struggle to use renewable energy on-site

0%

say that it is a challenge to decarbonise CO₂ emissions in the transport supply chain

They will have to innovate

Manfred Vonlanthen, CEO of Swire Energy Services, says there are two types of oilfield services companies:

“Some are saying ‘let's just ride into the sunset’ and make as much money as we can for as long as we can, focusing on efficiency, technology and maybe some new business models. Others plan to use the cash they are generating to finance the transition and have some clear targets on how they intend to do this. All this decision-making is starting now, and everything will happen within the next 10 years.”

Which way will your company go?