SLB N.v.: Assessing Growth Catalysts in the Energy Transition Era

The global energy transition is reshaping the competitive landscape for oilfield services, demanding a recalibration of traditional business models. Schlumberger N.V. (SLB), the industry's largest player, has emerged as a pivotal actor in this transformation, leveraging its technical expertise and capital to pivot toward low-carbon energy solutions. As the world grapples with the urgency of decarbonization, SLB's strategic investments in carbon capture, hydrogen, geothermal, and digital innovation are not merely defensive measures-they represent a calculated bet on the future of energy. This analysis evaluates SLB's positioning in the energy transition, focusing on its partnerships, technological advancements, and geographic diversification, and assesses the implications for long-term growth.

Strategic Pillars: Carbon Capture and Utilization

SLB's most visible foray into the energy transition is its joint venture SLB Capturi, formed with Aker Carbon Capture in 2023. This partnership aims to scale carbon capture, utilization, and storage (CCUS) technologies, with a particular emphasis on integrating them with blue hydrogen production according to SLB's 2025 report. By 2025, SLB Capturi had deployed modular carbon capture plants across Europe, including the Ørsted Kalundborg CO2 Hub in Denmark, which captures 430,000 metric tons of CO2 annually-a volume equivalent to the emissions of a mid-sized city according to SLB's 2025 report. The venture's involvement in the Northern Lights project, the world's first open-source CO2 transport and storage infrastructure, further underscores its ambition to standardize and commercialize CCUS according to SLB's 2025 report.

These initiatives align with SLB's broader net-zero-by-2050 target, but their commercial viability hinges on regulatory support and carbon pricing. According to a BloombergNEF report, CCUS could account for 15% of global emissions reductions by 2050, yet current deployment rates remain below projections. SLB's early mover advantage in this space, however, positions it to benefit from policy tailwinds as governments accelerate climate action.

Hydrogen and Geothermal: Diversifying the Energy Portfolio

SLB's pivot to hydrogen is equally ambitious. In 2025, the company partnered with John Cockerill Hydrogen and Genvia to develop low-carbon hydrogen solutions, including solid oxide electrolyzer cell (SOEC) technology, which promises higher efficiency than conventional electrolysis according to Enkiai's analysis. These partnerships are critical, as hydrogen is projected to supply 10–15% of global energy demand by 2050, according to the International Energy Agency (IEA). However, the sector's growth depends on overcoming cost barriers and infrastructure gaps-a challenge SLB is addressing through its integrated approach to project development and digital optimization according to Enkiai's analysis.

Geothermal energy represents another frontier. SLB's Celsius Energy division has deployed networked geothermal systems in the UK and U.S., including the first utility-owned geothermal network in Massachusetts, serving 140 customers according to SLB's 2025 report. Collaborations with DEEP Earth Energy and Ormat Technologies are advancing next-generation geothermal projects, particularly in Canada, where SLB is developing high-temperature resources that could rival fossil fuels in cost and reliability according to Enkiai's analysis. Geothermal's potential as a baseload renewable makes it a strategic asset for SLB, especially as intermittent renewables like solar and wind require complementary solutions for grid stability.

Critical Minerals and Digital Innovation: Enabling the Transition

The energy transition's reliance on critical minerals, such as lithium, has become a focal point for SLB. The company's sustainable lithium production technology, demonstrated at a plant in Nevada, uses subsurface brine to minimize environmental impact-a critical differentiator in a sector plagued by supply chain controversies according to SLB's 2025 report. Partnerships with Pantera Minerals in Arkansas and Alberta further diversify SLB's lithium sourcing, reducing exposure to geopolitical risks. According to BloombergNEF, as electrification accelerates, lithium demand is expected to grow 10-fold by 2030, making SLB's early investments in this space a potential growth engine.

Digital innovation is the linchpin of SLB's strategy. Acquisitions like RESMAN Energy Technology and partnerships with ZEDEDA for edge AI and AIQ for agentic AI workflows are enhancing operational efficiency and enabling autonomous operations in distributed energy systems according to Enkiai's analysis. These technologies are not only optimizing SLB's traditional oil and gas services but also creating new revenue streams in energy storage and grid management. For instance, AI-driven reservoir modeling is improving the economics of geothermal projects, while digital twins for CCUS facilities are reducing deployment costs according to Enkiai's analysis.

Geographic Expansion: Scaling in Emerging Markets

SLB's geographic diversification is a key growth catalyst. The company is expanding its geothermal and CCUS initiatives into Canada, Asia, and Africa, including the Northern Endurance Partnership for a major CCS project in the UK North Sea according to Enkiai's analysis. In Nigeria, SLB is deploying solar power in healthcare facilities, addressing energy access challenges while building a footprint in emerging markets according to Enkiai's analysis. This strategy aligns with the IEA's projection that 70% of future energy demand growth will occur in developing economies according to BloombergNEF. By tailoring its solutions to local needs-such as decentralized geothermal networks or modular carbon capture-SLB is positioning itself to capture market share in regions where legacy infrastructure is less entrenched.

Risks and Considerations

While SLB's strategy is robust, several risks warrant scrutiny. The energy transition's pace remains uncertain, with policy reversals and technological bottlenecks posing headwinds. For example, hydrogen's high production costs and geothermal's site-specific constraints could delay scalability. Additionally, SLB's reliance on partnerships introduces execution risks, as seen in the CCUS sector's dependence on third-party infrastructure. Investors must also weigh the company's exposure to its traditional oil and gas business, which still accounts for the majority of revenue.

Conclusion: A Leader in the New Energy Paradigm

Schlumberger's strategic investments in low-carbon technologies reflect a clear-eyed understanding of the energy transition's inevitability. By combining its legacy strengths in engineering and project execution with cutting-edge digital tools and partnerships, SLB is transforming from an oilfield services provider into a diversified energy solutions company. While challenges remain, its early bets on CCUS, hydrogen, geothermal, and critical minerals position it to capitalize on multi-decade growth opportunities. For investors, SLB's ability to navigate the transition while maintaining profitability in its core markets will be the defining metric of its success.