The Rise of Carbon Capture Infrastructure in the North Sea: A Strategic Opportunity in Energy Transition

The global energy transition is accelerating, and carbon capture and storage (CCS) is emerging as a cornerstone of industrial decarbonization. Nowhere is this shift more evident than in the North Sea, where two energy technology giants—Schlumberger (SLB) and Halliburton (HAL)—are securing pivotal roles in building the infrastructure needed to achieve net-zero emissions. Recent contracts awarded to these firms signal a maturing CCS market and position them as key enablers of the energy transition, offering investors a compelling opportunity to capitalize on the growing demand for carbon storage solutions.

SLB and Halliburton: Pioneers in North Sea Carbon Storage

Schlumberger's recent $45.31 billion market capitalization and Halliburton's deep expertise in subsea engineering have made them indispensable in the North Sea's CCS race. Schlumberger's $45.31 billion market capitalization and Halliburton's deep expertise in subsea engineering have made them indispensable in the North Sea's CCS race.

Schlumberger's Breakthrough with the Northern Endurance Partnership (NEP)
In July 2025, Schlumberger secured a landmark contract with the Northern Endurance Partnership (NEP), a joint venture between BP, Equinor, and TotalEnergies. The project, part of the UK's East Coast Cluster initiative, involves constructing six carbon storage wells in the North Sea using SLB's Sequestri™ carbon storage solutions. These wells will transport up to 4 million metric tons of CO2 annually to the Endurance saline aquifer, with the potential to scale to 1 billion metric tons over time.

SLB's involvement underscores its strategic pivot toward decarbonization. The company's Sequestri™ portfolio, which includes drilling, cementing, and pumping technologies tailored for carbon storage, is designed to address the unique challenges of long-term CO2 sequestration. Katherine Rojas, SLB's Senior Vice President of Industrial Decarbonization, emphasized that such technologies are critical for “shifting the economics” of CCS projects, reducing costs, and ensuring the integrity of storage sites.

Halliburton's Leadership in Offshore CCS
Halliburton, meanwhile, is leveraging its 50-year history in North Sea operations to dominate the CCS market. The company was awarded a contract by NEP to provide completions and downhole monitoring services for the East Coast Cluster's first offshore CCS project. Halliburton's scope includes manufacturing equipment at its UK facility in Arbroath and deploying advanced materials like 25% chrome alloy to prevent corrosion in CO2-rich environments.

The project's infrastructure—a 145-km offshore pipeline and subsea injection systems—will initially store 4 million metric tons of CO2 annually, with expansion potential to 100 million metric tons over 25 years. Jean-Marc Lopez, Halliburton's Senior Vice President for Europe, Eurasia, and Sub-Saharan Africa, highlighted the project as a “blueprint for scalable, sustainable carbon storage,” reflecting the company's broader strategy to lead in low-carbon technologies.

Market Implications: A Growing CCS Ecosystem

The North Sea's CCS projects are not isolated efforts but part of a larger trend. Governments across Europe are incentivizing carbon storage through regulatory frameworks and funding mechanisms, such as the UK's Cluster Sequencing Process and Norway's state-backed carbon capture initiatives. These policies are creating a $1.2 trillion global CCS market by 2035, according to BloombergNEF, with the North Sea serving as a testbed for scalable solutions.

SLB and Halliburton's contracts highlight their ability to deliver end-to-end CCS solutions, from well construction to monitoring. Their technologies are critical for ensuring the safety and permanence of carbon storage—a key concern for regulators and investors. For example, Halliburton's use of intelligent completion systems and retrievable packers in its Norwegian project demonstrates how innovation can mitigate risks and enhance project economics.

Investment Case: Positioning for Long-Term Growth

For investors, the rise of CCS infrastructure presents a dual opportunity: capitalizing on the energy transition while supporting industrial decarbonization. Schlumberger and Halliburton are well-positioned to benefit from this trend due to their technical expertise, global footprints, and strategic partnerships.

• Schlumberger (SLB): With a strong balance sheet and a focus on high-margin decarbonization services, SLB is poised to capture a significant share of the CCS market. Its recent contract with NEP aligns with its $45.31 billion market capitalization and Halliburton's deep expertise in subsea engineering have made them indispensable in the North Sea's CCS race.

• Halliburton (HAL): Halliburton's North Sea projects and cross-border collaborations (e.g., Norway's CO2 storage facility) showcase its leadership in CCS. The company's automation and digital solutions, such as Octiv Auto Frac, further enhance its competitive edge in reducing operational costs.

However, risks remain. Regulatory delays, technological uncertainties, and macroeconomic volatility could impact project timelines and profitability. Investors should monitor SLB and HAL's quarterly earnings for updates on CCS project progress and cost efficiencies.

Conclusion: A Strategic Inflection Point

The North Sea's CCS infrastructure is a microcosm of the global energy transition. As SLB and Halliburton demonstrate, carbon storage is no longer a niche technology but a critical enabler of net-zero goals. For investors seeking exposure to this high-growth sector, these firms represent a strategic opportunity to align with the decarbonization imperative while capturing long-term value.

In the race to decarbonize industry, the North Sea is setting the pace—and SLB and Halliburton are leading the charge.