Oil has been used since the early history of man as fuel for fire, and for war. Its great importance for the world economy developed, however, very slowly, with wood and coal being the main fuels used for heating and cooking, and whale oil being the preferred one for lighting, until well into the 19th century.
analysis-of-the-strategic-process-in-the-schlumberger-companyAn early oil industry appeared in the 8th century when the streets of Baghdad were paved with tar (tar) derived from oil by destructive distillation. In the 9th century, oil fields were exploited in the area near Baku, in Azerbaijan, to produce naphtha. These fields were described by al-Masudi in the 10th century, and by Marco Polo in the 13th century, who described the production of these oil wells as hundreds of ships. Oil was also distilled by al-Razi in the 9th century, producing chemical compounds like kerosene in the alembic. This product was used for lighting thanks to the parallel invention of kerosene lamps, within the oil lamp industry.
The Industrial Revolution created a growing need for energy, which was supplied mainly by coal. On the other hand, it was discovered that kerosene could be extracted from crude oil, and that it could be used as fuel. Oil began to have a strong demand, and by the 20th century it became one of the main raw materials for world trade.
It is through the use of this raw material that Schlumberger arises. Founded in 1926 and headquartered in Houston, Texas, Schlumberger has 77,000 plant workers and 28,000 continually rotating contractors, located in 80 countries including: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Peru, Venezuela, and Mexico.
It provides oilfield services, which bring a variety of subservices and solutions to the international oil industry.
The company operates in two segments: Full Services to Oil Wells, and WesternGeco. The first provides technology, project management, and information solutions. WesternGeco, provides reservoir imaging, monitoring, and development services; It also operates seismic equipment, data processing centers, and a multi-client seismology library.
1.- CHAPTER 1: THE COMPANY
1.1 Historical Review
Schlumberger was founded in 1926 by brothers Conrad and Marcel Schlumberger, initially the company was called Société de Prospection Électrique. Before founding their company, the Schlumberger brothers had worked on conducting geophysical surveys, which they conducted in countries such as Romania, Canada, Serbia, South Africa, the Democratic Republic of the Congo, and the United States.
1930
Schlumberger Well Surveying Corporation, now known as Schlumberger Well Services, was founded in 1935. Reflecting in this way the important growth of the market in the United States in such a way that half of its professional teams were working in that place.
1940
World War II inevitably slowed technological development, but Schlumberger nonetheless continued to make significant strides during the 1940s.
In 1940, the company moved its headquarters to Houston to take advantage of the US position as a world leader in technology, especially in electronics. However, Marcel Schlumberger remained based in France, where he and his team continued to invent and innovate.
In the 1940s important contributions were made to technological knowledge. In 1942, Gus Archie of Shell Oil published a report on the relationship between electrical resistivity and porosity and water saturation in rocks containing oil. Archie's Law would become the basis for the petrophysical interpretation of annotations.
Staying ahead of competitors requires a substantial investment in cutting-edge research. In 1948, a new research center is established in Ridgefield, Connecticut - the Schlumberger-Doll Research Center. This provided the springboard for the technological advancements that define Schlumberger's success in the second half of the 20th century. The Center, which continues to play an important role in the company when it comes to R&D, is now located in Cambridge, Massachusetts.
1950
This decade was characterized by the application of electronics in all the processes managed by Schlumberger, known as the decade of new technologies and strategic acquisitions. Development efforts are focused on two new electronic probes known as the microlog and the microlaterolog.
In 1951, Schlumberger began experimenting with a device called a microneutron, which could measure porosity in the walls of perforations by detecting the amount of hydrogen present. The work was also launched with another technique to quantify porosity, based on the use of gamma rays.
One of the last technological developments of this decade was the so-called Accelerator Porosity Tool (APT), a technique to measure the concentration of Hydrogen by detecting the reduction of energy in neutron sources.
Regarding expansion, the company bought 50% of the shares of Forex drilling rig company in 1952 and four years later bought Johnson tester, the first of many acquisitions that would lead Schlumberger to provide a more complete spectrum of services. of training evaluation measures.
1960
For now, Schlumberger's evolution was finding valuable uses beyond its core and mineral hydrocarbon activities. The company's increasing experience in deepwater drilling has increasingly helped illuminate the ocean floor by scientific exploration. His equipment was also helpful in searching for sunken ships, most notably the USS Thresher submarine, which had been lost at Cape Cod, Massachusetts in 1963. Schlumberger provided an electrode capable of detecting spontaneous potential - the electricity generated by the submerged metal. in the water - indicating the location of the ship on the seabed.
La tecnología de Schlumberger también fue utilizada en otro reino por completo. La nave espacial que se desarrolló a lo largo de la «carrera espacial» de la década de 1960, que culminó en el alunizaje del Apolo 11 en 1969, es precisamente el tipo de equipo de medición a distancia de detección que Schlumberger se pionero. La compañía proporciona alta fiabilidad en las máquinas de calcular que entrega a la NASA en la década de 1960 y todavía proporciona sensores para la exploración espacial en la actualidad.
Meanwhile, progress in the company's core businesses continued apace. Throughout the 1960s, Schlumberger engineers developed density registers to improve knowledge of lithology and porosity, measurements of saturation through the coating. A new Schlumberger engineering center in Clamart, France was founded in 1965
The company also grew steadily through acquisitions and partnerships. In 1960, he formed Dowell Schlumberger, a 50/50 joint venture with Dow Chemical, which specialized in pumping services for the oil industry. In 1961 Solartron, a British electrical instrumentation company, was acquired, and in the same year, the Société d'Schlumberger instrumentation was created to coordinate the expansion in electronics and measurement systems. In 1962, the company acquired Vector Cable's wireline operations and Daystrom measuring instruments. In 1964, Schlumberger created the drilling company Neptune by merging parts of its Languedocienne operation with Forex, of which it owned 50% at the time.
A growing company also required better access to finance, which led to the listing of Schlumberger Limited on the New York Stock Exchange in 1962.
1970
Log interpretation started in 1970. The Saraband program integrates all existing log measurements that are used to measure the volume of clay minerals in rock and calculate fluid saturations. While zarabanda was designed for clay sands analysis, its sister application CORIBAND was developed to cope with multi-mineral lithology.
In 1971, the "triple combo" registration tool was introduced, reducing operating time and customer risk, providing gamma ray, spontaneous potential, resistivity, neutron density, and thickness measurements on a single piece of equipment.
Data records could now be transmitted from the field, not only by phone, but also by satellite. The first truck with a registration kit entered the field in 1977 as part of the Cyber Service Unit (CSU). In 1975 Schlumberger joined ARPAnet, the computer research network created by the US Department of Defense that would later become the Internet.
In the latter part of the decade, Schlumberger introduced the S&D Tool, a first generation of digital tools for uphole sonic processing of sound compression and cut speeds in formations. Research is also being carried out on
Accelerator Porosity Tool (APT), a multi-neutron detector tool with pulsed neutron source, that measures the delay time. In 1979, the first observation of the slow propagation wave, a long-predicted function of porous media acoustics, paved the way for applications that could eliminate unwanted signals.
Strategic acquisitions continued, including that of Flopetrol, a specialist in oil well production testing, in 1971. Schlumberger acquired the remaining 50% of Forex shares he did not own, and created Neptune Drilling Company in the same year. Analysts, a provider of directional drilling and mud logging services, was acquired in 1977, paving the way for success in rapidly expanding measurements in the drilling industry.
1980
A series of acquisitions leads to a further restructuring of Schlumberger subsidiaries. The purchase of drilling company SEDCO drilling company and 50% of Dowell of North America in 1984 led to the creation of Anadrill (a combination of Dowell and segments of drilling analysts) and SEDCO Forex Drilling Company (a merger from SEDCO with Forex Neptune). Meanwhile, the acquisition of 50% of GECO in 1985 marked the beginning of a long-term commitment for the seismic measurement sector. Schlumberger acquired the remaining 50% of GECO in 1988.
Other strategic moves in the decade include the merger of Flopetrol with the landline group to create Schlumberger Wireline & Testing, and the acquisitions of Neptuno (North America), Bosco and Cori (Italy), and Allmess (Germany).
The company's commitment to developing a global research network led to the opening of its Cambridge Research Center in England in 1983, focusing on drilling technology, fluids, seismic techniques, and mechanical rock production. The Fuchinobe Engineering Center in Japan was opened in 1985.
In 1981, the company implemented its international links with the first email data. Two years later as one of the first commercial users of ARPANET, the forerunner of the Internet, the company's first secure gateway between internal divisions was established in the company's laboratory in Palo Alto.
In 1985, the company implemented the Schlumberger Information Network (SINet), the second largest internal corporate and the world's first commercial intranet based on the ARPANet network. Before the end of the decade, Schlumberger registered the Internet domain name slb.com.
Following the drop in oil prices in 1986, which had negatively affected global exploration, the company successfully reoriented its business from oilfield services and core activities to measurements in addition to placing greater emphasis on R&D, which which would lead to the development of a number of new products.
1990
This era was distinguished by the large number of revolutionary products based on the highest technology that were designed and put into operation by the company.
A series of acquisitions helped the company grow and diversify its activities. Prakla-Seismos, GeoQuest Systems, Oilphase and Camco Internacional were some of the companies that became part of Schlumberger. Strategic collaborations were forged as well, as communications and risk information Omnes Technology merged with Cable and Wireless, and the company MI LLC Drilling Fluids into a company with Smith International.
2000
Schlumberger also reinforced its offer of seismic studies. Geco-Prakla merged with Western Geophysical in 2000 to create WesternGeco, 70% owned by Schlumberger and 30% owned by Baker Hughes. Six years later, Schlumberger bought Baker Hughes shares to have full ownership.
The Schlumberger-Doll Research Center moved from Ridgefield, Connecticut, to Cambridge, Massachusetts in 2007, to take advantage of closer proximity to academic institutions that work at the forefront of science and technology at that technology center.
The opening of the Schlumberger Russia Technology Hub on the campus of Gubkin State University of Russia for Oil and Gas in 2004 reflects the growing importance of Russia's energy sector. The company had also acquired a stake in the services PetroAlliance Company Limited, one of Russia's major oilfield services company, a year earlier.
1.2 Company overview
Schlumberger is the trusted and trusted provider of oilfield services to deliver superior results and improve E&P performance for oil and gas companies worldwide. Through their operations, at their research and engineering facilities, they are working to develop products, services and solutions that optimize customer performance in a safe and environmentally sound manner.
Schlumberger Limited (NYSE: SLB) is the world's leading oilfield services company, supplying the technology, information solutions and integrated project that optimizes warehouse performance for clients working in the oil and gas industry. gas. Founded in 1926, today the company employs more than 105,000 people of more than 140 nationalities working in approximately 80 countries.
The company comprises two business segments:
Schlumberger Oilfield Services, supplies a wide range of products and services in formation evaluation and directional drilling, bonding with cementing, completion and productivity consultation, software, information management and IT infrastructure services that support the main industry and operational processes.
WesternGeco is the world's largest seismic analysis company and provides advanced measurement, computing and data processing services.
Schlumberger has its main offices in Houston, Paris and The Hague. The capital was 22.7 billion dollars in 2009. Schlumberger has shares listed on the New York Stock Exchange, the symbol of the teleprinter that it manages on the stock exchange is SLB, it is also listed on Eurosuesse Paris, Eurosues Amsterdam, London and the SWX exchanges. Swiss.
Schlumberger manages his business in 33 GeoMarket regions, which are grouped into four geographic areas: North America, Latin America, Europe, CIS, and Africa and the Middle East and Asia. GeoMarket's structure offers clients not only a point of contact at the local level for campaign operations, but also brings together geographically focused teams to meet local needs and deliver customized solutions. Working together with the company's technology segments, GeoMarkets provides a powerful conduit through which information and know-how flow to customers, and through which Schlumberger engineers and geoscientists maximize technological synergies over the entire life of the countryside.
1.3 Mission, Vision and Values
Mission
Schlumberger's mission is to be leaders in consulting and service provision in the oil industry, to provide comprehensive services, flexible solutions through technology and committed people, in order to exceed the expectations of our clients.
View
Being a company that anticipates the future of the oil industry, through cutting-edge technology and staff development, to provide excellent customer service; achieving solid and profitable growth that allows us to be the best and largest consulting and service provider company in the world.
Values
Making the most of its unique assets, Schlumberger is committed to providing services to improve and optimize the performance of our clients.
Three well-established values in the company that focus on people and the technology on which the benefits of their work are based.
- Our people advance in the challenge of excelling in any environment, and their dedication to safety and customer service around the world is our greatest strength. Their commitment to technology and quality is the foundation of our competitive advantage. Our determination to produce superior profits is the cornerstone for our future independence of action and growth.
This through the application of ethical values that govern their business conduct in the pursuit of total customer satisfaction, which are:
1.4 Philosophy
They have a firm commitment to quality and excellence and place special emphasis on communication skills and the good use of language. Its philosophy is based on working closely with its clients, providing them with the advice and technical knowledge that allows them to achieve their objectives together. They combine innovative technology-based approaches and cutting-edge ideas with strong practical skills and experience. Thanks to the quality of their work, their professional approach and constant attention to the needs of their clients, a high proportion of their workload corresponds to contracts with regular clients. They pride themselves on the fact that their customers continually recommend them.
2.- CHAPTER 2: STRATEGIC PROFILE
2.1 How is the company defined?
2.1.1 Products and Services handled by Schlumberger
Schlumberger is an international technical company that sells products and services that improve the productivity of its customers. The company has three business segments: Oilfield Services, Resource Management Services, and Test and Transactions.
Oilfield Services provide a wide range of technical services to the upstream exploration industry and to the production industry (international oil industry).
Resource Management provides professional business services to utilities, energy service providers, and industry worldwide. Through consulting, meter management and development, data collection and processing, and information analysis, RMS helps the customer complete network optimization, improve efficiency, and increase customer loyalty in all utility sectors - water, gas, electricity and heating.
Trials and Transactions provide integrated solutions for electronic transactions, semiconductor construction and IP networks to clients around the world. These solutions integrate technologies, products, services and skills that are applied to solve customer problems.
Listed below are the products and services Schlumberger offers its customers:
Artificial lift
Schlumberger offers artificial lift solutions for uses ranging from simple and inexpensive, to complex, high temperature and high pressure. Submersible electric pumps (ESPs) and gas lift products and services are designed to mitigate risk and extend the operating limits of conventional systems. Response products and services are also available to optimize artificial lift and production.
Cementation Services
Cement well supports and protects downhole covers and helps achieve zonal isolation. This is a critical process for safety, and to avoid excessive environmental noise, and thus achieve more profitable wells. Zonal isolation is created and maintained in the well by the cementing process. Whatever your drilling environment, or location, no matter how remote it is. Its innovative cementing technologies offer you a wide range of options that allow you to find solutions and thus achieve zonal isolation, which seeks to extend the life of the well.
Spiral pipe services
Schlumberger services offer innovative flexible tubing (TC) transmitted intervention techniques, which are designed to improve your well-being and the performance of reserves. The application of CT includes stimulation of the matrix and fractures, well cleaning, felling, drilling, initial nitrogen kick, sand control, drilling, cementing, as well as circulation and mechanical isolation.
Its product portfolio includes all the tools and services necessary for efficient and effective TC interventions.
Well completion
The termination service better connects your deposit and helps reduce production costs, extend the life of the deposit, and optimize oil recovery with terminations designed to extend the life of your oil or gas.
Drilling services
Well drilling to reduce cost and risk, regardless of depth, hole size, or formations.
Formation evaluation
Schlumberger continually seeks to improve its analysis of formation properties through the formation scanner for exploration, drilling imaging, fluid sampling, and flow profile. New Multifrequency Dispersion Dielectric Scanner Service Provides Higher Accuracy for Formation Assessment, Direct Measurement of Water Volume and Rock Texture Information, Avoiding Core Analysis Delays and Estimation Parameter Uncertainties. With this method it is possible to improve the understanding of the information, through the integration of measurement, which provides you with a more complete evaluation of the training.
Perforated
Schlumberger drilling systems engineering can help you achieve the best production or injection in the well by optimizing the relationship between the gun system, well, and your reservoir.
Production and Services lined well
Improve your production in the field with real-time or periodic evaluation, prevention, and management services.
Reservoir Characterization and Interpretation Services
Schlumberger Data and Consulting (DCS) has leading experts in consulting services for full-field reservoir characterization, production enhancement, multidisciplinary warehouse and production solutions, and field development planning. Tightly integrated with Schlumberger's research, information technology, software, and services, DCS enables operators to transform data into business decisions to maximize asset value.
Sand control
They offer sand control to prevent sand from seeping into the reservoir and to stabilize a reservoir, improve production and increase the life of a well. Schlumberger Terminations offers a wide range of products and services to satisfy most applications and environments. Whatever your project and whatever its location, they can offer the ideal solution for sand control.
Geophysical Services
WesternGeco, a business segment of Schlumberger, is the segment of the company tasked with providing core geophysical services, providing a full range of services to the oil and gas industry.
Oil & Gas Service Software
Schlumberger Information Solutions (SIS) provides software, which provides accurate information on oil and gas deposits, which allows to face challenges and facilitate decision making, allowing the creativity of geoscientists and engineers through innovative workflows and world-class comprehensive services.
Through their technologies and services, oil and gas companies can improve business performance, reduce exploration and development risks, and realize the potential of the digital oil field.
Stimulation
Hydraulic fracturing and matrix stimulation treatments to restore or improve well productivity, which are performed in all types of formations and deposit environments. You can maximize production by creating high flow conductivity reservoir routes. Software analysis makes it easy to select the right treatment for each environment. This is essential for economy and prolongs well productivity.
Well Testing
They offer the widest range of testing and measurement services available, from exploration and evaluation through production development.
From the bottom of the well or on the surface, they get answers to questions about productivity, fluid properties, composition, flow, pressure and temperature. Combining field testing experience with the reserve knowledge domain, your team will work with you to demonstrate the potential of the reservoir, thereby confirming performance and improving field productivity so you can be confident and discuss your options.
Submarine
Schlumberger Submarine Solutions provides options and information throughout the life of the assets that allow planning, accessing, rehabilitating and managing your submarine field. At each stage, they are committed to improving reservoir recovery, optimizing production, and maximizing production time for their subsea field assets.
2.1.2 Location of the company
SBC operates through 13 offices worldwide. They are also capable of delivering projects anywhere there is a Schlumberger base around the globe.
2.1.3 Geographical Coverage
Schlumberger manages his business through 33 GeoMarket regions, which are grouped into four geographic areas: North America, Latin America, Europe, CIS, and Africa and the Middle East and Asia.
The GeoMarket structure offers customers a single, local point of contact for field operations and brings together geographically focused teams to meet local needs and offer tailored solutions. Working in conjunction with the company's technology segments, GeoMarket provides a powerful conduit through which information and know-how flows to customers, and through which engineering engineers
Schlumberger and geoscientists maximize technological synergies throughout the life of the field.
This is why Schlumberger divides its countries of operation into the aforementioned zones, which are subdivided as follows:
• Europe, CIE (Commonwealth of Independent States) and Africa.
or Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Austria, Bulgaria, Croatia, Czech Republic, France, Georgia, Germany, Greece, Hungary, Italy, Morocco, Poland, Portugal, Romania, Serbia, Montenegro, Spain, Turkey, Ukraine, Libya, Algeria, Morocco, Tunisia, Benin, Cameroon, Chad, Equatorial Guinea, Ghana, Ivory Coast, Nigeria, Sao Tomo, Denmark, Ireland, Mauritania, Netherlands, Norway, United Kingdom, Russian Federation, Angola, Congo, Gabon, Kenya, Mozambique, Namibia, South Africa, Tanzania, Uganda
• Latin America.
o Argentina, Bolivia, Chile, Uruguay, Brazil, El Salvador, Guatemala, Mexico, Colombia, Ecuador, Peru, Suriname, Trinidad and Tobago, and Venezuela.
• Middle East, Asia and Oceania.
o Australia, New Zealand, Papua New Guinea, Bahrain, Kuwait, Neutral Zone, Saudi Arabia, China, Japan, Korea, Taiwan, Brunei Darussalam, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Egypt, Ethiopia, Iraq, Jordan, Syria, United Arab Emirates, Oman, Pakistan, Indonesia, Bangladesh, India, Qatar, Yemen.
• North America.
or the USA, Alaska and Canada.
Today Schlumberger continues to build on industry background, which is the most viable means of providing cutting-edge exploration and production technology, to develop new advances from field to surface. Since its founding, the company has invested a lot of time and money in research and development, a long-term strategy to support and grow its technology leadership. Short-term business cycles do not affect your commitment.
With 25 R&D centers worldwide, Schlumberger places special emphasis on developing innovative technology that brings added value to its customers. Schlumberger constantly invests more in R&D each year than all other oil services companies.
Research Centers.
The search for oil and gas has three objectives: to identify and evaluate hydrocarbon reservoirs, to bring hydrocarbons to the surface safely and profitably, without harming the environment, and to maximize the performance of each discovery. These goals can be advanced only by ongoing research in all aspects of exploration, drilling, completion and production processes.
Schlumberger has a strong long-term commitment to research and development (R&D), which it has demonstrated through its global network of R&D centers.
Two main centers are dedicated to the investigation of oil fields. Since 1981, Schlumberger Cambridge Research in Cambridge, England, has developed new concepts and techniques that have helped oil and gas companies find and produce hydrocarbons. Moving to Cambridge, Massachusetts, USA in 2006, Schlumberger-Doll Research has been a center of excellence for oil field research since 1940.
Schlumberger also has several research satellites at strategic locations around the world. They are located in Dhahran, Moscow, and Stavanger.
Their research is often carried out in collaboration with universities and clients around the world. This ensures close contact with cutting-edge research in all relevant disciplines, improves understanding of customer challenges, and facilitates the validation of research ideas in field experiments early in the product development cycle.
Production and Technology Centers.
Through a network of technology centers around the world, Schlumberger maintains the technology service industry's commitment to innovation and innovation longer. Designed, built and tested to the highest standards, its advanced tools and products are used worldwide in a wide range of standard well applications, at low temperatures, under normal pressure, or in the most hostile environments. Schlumberger's network of technology centers includes facilities and constant monitoring to improve development.
2.1.4 Location of Schlumberger in Mexico
Dowell Schlumberger de México SA de CV is a company in the Oil & Gas sector, which has been developing crude oil exploration and production, for the parastatal public company PEMEX for almost sixty years, and has also provided training to employees of Petróleos Mexicanos in the areas project management, monitoring, equipment operation, etc.
Dowell Schlumberger has its main offices in the Federal District, at Avenida Ejercito Nacional 425 Level 9, Col. Granada. But it also has bases and service centers, as well as care and training in other cities of the Mexican Republic such as:
Villahermosa tabasco.
Cd. Del Carmen, Campeche.
Altamira, Tamaulipas.
Reynosa tamaulipas.
Matamoros, Tamaulipas.
Poza Rica, Veracruz.
In addition to these bases, Schlumberger participates in the extraction of PEMEX crude in the Gulf of Mexico in the following wells:
Burgos Basin.
Coapechaca, Veracruz.
Tajín, Veracruz.
Agua Fría, Veracruz.
Chicontepec, Veracruz.
Paradise, Tabasco.
Puerto Dos Bocas, Campeche.
2.1.5 Degree of Schlumberger integration
Schlumberger is a company with a high level of horizontal integration, since it offers various drilling, measuring, extraction, etc. services. It has been necessary to create subsidiary companies to meet customer demands, the subsidiary companies that Schlumberger has in its horizontal integration are:
Geoservices is a shallow water oil services company founded in 1958. It offers a number of services that help evaluate hydrocarbon deposits and optimize field exploration development and production.
IndigoPool, is a Schlumberger company, which plans to acquire technology and advisory services from the international oil and gas community.
Its worldwide presence offers unique value to clients with international portfolios and to those who aspire to expand internationally.
Within MY SWACO, they have the ability to solve problems ranging from the simple to the complex. Teams dedicated to designing complete fluid management systems, using instrumentation control systems and automation software. They have made significant investments in research and engineering facilities, as well as laboratories and field support operations. These facilities, and the capable and talented people who operate them, give MI SWACO a competitive advantage.
Smith Bits is a world leader in the design, manufacturing, and marketing of PDC drill taper and roller taps, used in oil and gas exploration. Winner of numerous awards, Smith Bits has earned industry recognition as the world leader in drilling.
WesternGeco, a business segment of Schlumberger, is the area of the company that provides core geophysical services, providing a full range of services to the oil and gas industry.
Wilson is an industry leader in supplying pipe, valves and valve automation, mill accessories and supplies, safety products, lifting artificial power systems for industrial markets. Wilson is recognized as a leader in supply chain solutions and as a company providing value-added services, including providing integrated chain management and e-commerce solutions.
2.2 Position before the Competition
Schlumberger continues to be the leading company worldwide and ranked first in the segment of technology provider, comprehensive project management and solutions for the oil and gas industry. The company continues to occupy a privileged position ahead of its usual competitors, Halliburton, Baker Hughes, Weatherford and Oilwell.
2.2.1 Identification of the Competition
Schlumberger is valued at approximately $ 76 billion, twice the size of its main competitor Halliburton. Schlumberger had 2009 revenues of $ 22.7 billion well above its closest competitors, which reported the following revenues. Halliburton reported revenue of $ 14.2 billion, Baker Hughes $ 9.66 billion, Weatherford with $ 8.82 billion and Oilwell far behind with $ 1.46 billion.
REVENUE IN BILLIONS OF US $ MILLION DURING 2009.
2.2.1.1 Mexico
In 2009 Schlumberger's sales in Mexico were $ 320 million, followed by Halliburton with $ 248 million, Baker Hughes $ 145 million, and Weatherford with $ 128 million.
INCOME IN US $ MILLION IN MEXICO IN 2009
2.3 Company Strategies before the Competition
Schlumberger operates in many, varied and often difficult geographic settings. A firm commitment has always been to maintain the highest standards of quality, health and safety of its employees, customers and contractors, as well as for the protection of the environment in the communities where they live and work. Schlumberger's long-term business success depends on its ability to ensure that QHSE remains a priority for management and employees. The Schlumberger QHSE policy and various standards apply across the company. Each employee must keep the certification of essential QHSE training courses up-to-date through two traditional classrooms and online interactive learning. Their training driving safety program is an example of their QHSE success.In 2003 it resulted in zero automobile occupational fatalities even though employees recorded a monthly average of 12 million miles away.
In addition to this, Schlumberger manages a strategic orientation that involves the following elements:
Internationalization of Teamwork.
Reflecting their belief that diversity encourages creativity, collaboration and understanding of customer needs, they employ more than 105,000 people of more than 140 nationalities working in approximately 80 countries. Its employees are committed to working with their clients to create the highest level of added value. Knowledge communities and special interest groups with your organization allow teamwork and knowledge to be shared without the clutter of geographic boundaries.
Technological innovation.
With 25 research and engineering facilities worldwide, with special emphasis on the development of innovative technology, which provides added value for its clients. In 2009, it invested US $ 802 million in R&D.
Total knowledge of the Company by the CEO.
Andrew Gould is the President and CEO of Schlumberger Limited, before assuming his current position in February 2003, Gould was President and Chief Operating Officer of Schlumberger Limited. Prior to that appointment, he held the position of Executive Vice President of Schlumberger Oilfield Services. In a number of previous jobs, he was treasurer of Schlumberger Limited, and president of Sedco Forex, and of Oilfield Services products. Gould began his career at Schlumberger in 1975 in the Interior department of the audit firm in Paris. Before joining Schlumberger, he worked for Ernst & Young.
Prestige Image.
For oil and gas companies worldwide, Schlumberger is the leading and trusted provider of oil field services, for better results anywhere, as well as helping customers improve E&P performance. Like its reputation, the brand is synonymous with innovation and technology, knowledge of the domain, quality of service, global presence and shareholder trust.
Diversity
One of its greatest strengths is the diversity of the workforce, with men and women of many nationalities and backgrounds, able to work together and share common goals. Schlumberger does not have a "nationality" that describes his culture, but he operates in a truly global way. As a company, they recommend fair employment practices around the world and offer equal opportunities to all of their employees. They also try to take family circumstances into account in any decision about personnel or task issues.
2.4 Determination of Schlumberger's Competitive Advantages
Schlumberger offers its customers four main advantages:
Deep mastery and knowledge in exploration and production operations, obtained through 75 years of experience.
The greatest commitment to technological development and innovation, through a network of 25 technological, research and development centers.
A global reach in more than 80 countries, together with a solid local experience and the diversity in thought, training and knowledge that more than 140 nationalities provide them.
A commitment to excellence in service provision anytime, anywhere.
2.5 How does the Company define itself?
2.5.1 Basic Principles of the Company
Schlumberger is committed to excellence in everything they do. Their goal is to do business in a consistent and transparent manner with all of their clients and not to get involved or generate participations in their clients' assets. Clients place a great deal of trust in them, especially when it comes to handling sensitive and confidential information. Your reputation for behaving with integrity and fairness is vital to earning and retaining this trust.
The Schlumberger Code of Ethics and policies apply to all company directors, officers and employees. They are designed to help each employee handle business situations with professionalism and loyalty.
The Code emphasizes Schlumberger's values and encourages employees to incorporate those values into their working lives. As a practical and clear guide to the behavior that the company expects of each of its people in the world, which deliberately establishes consistent and high-commitment standards for all employees, regardless of their position or place for those who work around the world. It is a broad framework of support for a series of company policies, standards, guidelines, processes and procedures that establish Schlumberger's obligations and responsibilities for behaving ethically in all aspects of business life.
2.6 Strategic Profile
Schlumberger is a privately held, publicly traded US company. It provides oilfield services that bring a variety of sub-services and solutions to the international oil industry. The company operates in two segments: oilfield services, and WesternGeco. The first provides technology, project management, and information solutions. WesternGeco, provides reservoir imaging, monitoring and development services; It also operates seismic equipment, data processing centers, and a multi-client seismology library. Founded in 1926 and headquartered in Houston, Texas. According to the 2009 annual report, the company recorded a total income of approximately $ 22.7 billion.
Knowledge, technical innovation and teamwork are at the heart of what the organization is. For more than 80 years, they have focused on mobilizing these assets to offer solutions that improve customer performance.
Today, its real-time technology services and solutions enable customers to turn acquired data into useful information, and then transform this information into insight for better decision-making anytime, anywhere. Leveraging information technology in this way offers tremendous opportunities to improve efficiency and productivity. This is a quantum leap that provides traditional "just-in-case" and "just-in-time" delivery information, which deliver the knowledge that meets the changing needs of your customers.
Reflecting their belief that diversity encourages creativity, collaboration and understanding of customer needs, they employ more than 105,000 people of more than 140 nationalities working in approximately 80 countries. Its employees are committed to working with customers to create the highest level of value added. Knowledge communities and special interest groups with the organization allow teamwork and knowledge to be shared without the clutter of geographic boundaries.
With 25 research and engineering facilities worldwide, with special emphasis on the development of innovative technology that provides added value for its clients. In 2009, it invested US $ 802 million in R&D.
To achieve its leadership in the use of cutting-edge technology, it relies on the work of its 25 innovation and development centers located around the world. Emphasizing that the development of innovative technology brings added value to customers.
3.- CHAPTER 3: STRATEGIC FORECAST
3.1 Political, Social and Economic Dimensions
3.1.1 Political Dimension
Mexico's democratic stability has given rise to more open and important business participation where political action is not only exclusive to traditional powers.
This leads them to that any organization that aspires to settle in a country, must participate directly or indirectly in the political process. And this is achieved by demonstrating that their actions are in accordance with social norms and demands.
Schlumberger orients its political dimension towards the demands of society, as well as tries to anticipate changes to configure public policies according to the interests of the corporation.
Through the passage of time, in various countries of the world, in which Schlumberger has a presence, different policies have been developed that involve the participation and commitment of organizations, for this, this company has not been the exception, since it has been adapted and involved in the sense of the national policy of those countries in which it has a presence, through the elaboration of social commitment projects where it not only seeks to satisfy the needs of its clients, but also adapt to the norms that govern the land where it is found working.
This is reflected in the company's business philosophy, which is based on working closely with its clients, providing them with the advice and technical knowledge that allows them to achieve their objectives together. They combine innovative technology-based approaches and cutting-edge ideas with strong practical skills and experience. Thanks to the quality of their work, their professional approach and constant attention to the needs of their clients, a high proportion of their workload corresponds to contracts with regular clients. They pride themselves on the fact that their customers continually recommend them.
An excellent corporate image is not created by chance, and at Schlumberger it is rooted in both corporate culture and business behavior policy.
3.1.2 Social dimension.
With regard to social commitment, it is the responsibility of every company to ensure the environment in which it is located, this environment is often affected by natural and economic disasters, marginalization, lack of access to education and many others.
Schlumberger has endorsed the commitment to improve its environment through the application of various programs.
As a science and technology based company, Schlumberger has embraced education as a key theme of social engagement with the community, which is comprised of various initiatives: Schlumberger Excellence for Educational Development (SEED), the Schlumberger Foundation and local initiatives led carried out by their geomarkets, as well as by the employees themselves in their spare time.
Passion for learning.
SEMILLA is a volunteer based on the benefits of the education program and focused on the underserved communities where the people of Schlumberger live and work. SEMILLA relies on more than 3,000 employees - volunteers and educators - including teachers, parents, and other mentors to share their passion for learning and science with students ages 10-18. In addition, the program uses the do-what-to-do (LWD) methodology and draws on its volunteers' science and technology expertise to engage students in global issues such as water, energy and change.
Foundation for success.
A second set of outreach programs are enabled through the Schlumberger Foundation, a nonprofit that provides assistance to outside organizations, Cofunds, Geomarket, and eligible outreach programs, and operates its own programs generally through partnerships. Her initiatives include: Faculty for the Future to support women in pursuing an academic career in science and technology, the African Science Program to create opportunities in promoting research capacity in African institutions,.the scholarship program to award scholarships to talented students in developing countries interested in science and the trucking lab that brings experiments and interaction with science volunteers in mobile labs to students.
Schlumberger Foundation
Recognizing the link between science and technology and socioeconomic development, as well as the key role of education in realizing individual potential, the Schlumberger Foundation has the following programs:
Faculty for the future
It consists of granting scholarships and academic support to women in developing science and engineering in emerging countries, to carry out postgraduate studies at the best universities abroad.
Local initiatives.
Schlumberger employee-run programs are mostly supportive of education.
Catalyze local initiative.
Their staff around the world often initiate local projects of their own. In Chad, for example, funding from the Geomarket and the Foundation is helping to finance a local school, a project started by a Schlumberger employee.
The local managers and employees initiative also helped direct the response to the December 2004 tsunami and the 2005 earthquake that affected Asia.
A disaster reconstruction fund was created to contribute to recovery and reconstruction. To date, 12 projects, each driven by its employees, have been financially supported.
In addition, financial support is given to those employees who have technical skills to volunteer for a short period of time.
Environment
Your responsibility to protect the environment is important, and performance improvements have been made in recent years by applying your global environmental standard, seeking improvements especially in waste and water management.
For example, for the past few years that have issued specific wastewater management guidelines, these guidelines are in compliance with local regulations or may even contain more stringent internal standards.
Caring for the land where they operate continues to be a high priority and they have identified key areas for improvement, in particular in resource consumption and emissions.
And every day they apply their technical skills to the education of their ecological footprint, particularly in the design and engineering of their products.
During 2009, according to a study carried out by the sustainability and excellence management company, SA (M&E), based in Madrid and Sao Paulo and specialized in the oil and gas field, in which around twenty were compared. of companies against criteria such as sustainability, corporate governance, social responsibility, transparency and ethics, it was found that Schlumberger occupies the first places in said rating as shown in the following table:
Sustainability:
3.1.3 Economic Dimension
Globalization has been established today in all areas and at all levels, today a competitive company lives in an integrated world where the slightest action, whether it is its own or external, can significantly affect the organization.
Schlumberger cannot be left out of global economic problems given its presence in various countries and is sometimes affected by such problems.
The demand for most of its services is substantially dependent on the levels of spending by the oil and gas industry. Current world economic conditions have led to a significant decrease in oil and gas prices. If the current economic conditions continue or worsen for a long time, this could reduce the spending levels of its clients and have a negative effect on their income and operating results.
As the global deterioration in financial markets and credit has deepened in recent months, the demand for oil and gas has decreased, and so have its prices. It is difficult to predict how long the economic crisis will last or to what extent it will worsen.
Operations outside the United States accounted for 78% of revenue in 2008, 76% in 2007 and 73% in 2006.
Operations in countries other than the United States are subject to various risks, including:
- Exposure to possible expropriation or other government actions Social unrest, acts of terrorism, war or other armed conflict Adverse tax policies Deprivation of contract rights Trade restrictions or embargoes imposed by the United States or other countries Inflation Restrictions on currency and devaluations
They are also subject to risks associated with their operations in countries, including Iran, Syria, Sudan and Cuba, which are subject to trade and economic sanctions or other restrictions imposed by the United Nations.
This is also reflected in the behavior of the company's share price, which has fluctuated from $ 114.48 at the end of 2007, to $ 78 at the end of 2008, and the level they are at so far is $ 76.47, registering a tendency to the decline over the years, but in the current year its trend has been upward. In terms of earnings, these were $ 251 million in 2006, $ 250 million in 2007 and $ 290 million in 2008.
3.2 Market Dimensions
Schlumberger is a company whose market is in the oil well exploration and drilling regions, that is, it has a presence in 80 countries through the provision of services in its oil fields.
3.2.1 Brand Value
For oil and gas companies worldwide, Schlumberger is the leading provider of oil field services offering confidence in the exploration and drilling process. Like its reputation, its brand is synonymous with innovation and technology, mastery of knowledge, quality of service, global presence, and trust of shareholders.
Your brand stems from a commitment to excellence and your promise to deliver the best performance possible anytime, anywhere. Every communication they create has the identity of Schlumberger, in it reinforces this message.
3.2.2 Logo and Guidelines
To ensure that the Schlumberger logo is used correctly, the following guidelines must be observed:
3.3 Product and Technology Dimensions
Schlumberger is a leading company in the development of products, services and solutions necessary to improve exploration and production activities in oil and gas companies worldwide.
3.3.1 Mix of Technology
Since its founding, Schlumberger has invested a lot of time and money in research and development, a long-term strategy to support and grow its technology leadership, thereby introducing new technological advancements from field to surface.
3.4 Dimensions of Competition
In relation to the potential entry of new companies in the field of services for the exploration and production of oil and gas in the world and become new competitors of Schlumberger, they will have to face barriers such as political and technological with which Schlumberger has worked for years together with the technological development and innovation that is generated in its innovation centers.
This gives Schlumberger an advantage over the competition based on knowledge, experience and technological development in the field.
Hence the difference in income obtained during the year 2009, data presented in the previous section, where Schlumberger is presented as the company with the highest income in that year compared to its competitors.
Within the market for the provision of services for oil exploration and production, there are companies that are part of the competition of Schlumberger, among others are: Halliburton, Baker Hughes, Weatherford and Oilwell.
4.- CHAPTER 4: AUDIT OF RESOURCES
4.1 Operational Resources
Schlumberger is the world's premier service management technology, information solutions, and project management integration company that optimizes field performance for clients working in the oil and oil gas industry in the world.
The company employs approximately 105,000 people of more than 140 nationalities working in approximately 80 countries.
Schlumberger supplies a wide range of products and services for seismic and transformation measurement, formation evaluation, well testing and directional drilling as well as cementation and stimulation, artificial lift completions as well as consulting, software and information management.
4.1.1 Distribution
Geographical distribution.
Schlumberger is made up of geographical areas and regions or markets, to offer its customers a single point of contact at the local level for field operations and technology deployment.
Schlumbeger has a geographical distribution of intercontinental zones and each of these has a central office and offices at each distribution point, allowing it to have better communication with each of its clients.
This distribution is shown below:
Europe, CIS and
Caspian Africa, Continental Europe, Libya, North Africa, Nigeria, North Sea, Russian Federation, West and South Africa
Latin
America South America, America Central and the Caribbean
Middle East and Asia Area
Australia, China, Egypt, India, Indonesia, the Middle East and the Persian Gulf, South and East Asia
North America
Alaska, Canada, the Gulf of Mexico, US territory
Europe, the CIS and the area
Caspian Africa, Continental Europe, Libya, North Africa, Nigeria, the North Sea, Russian Federation, West and South Africa
Technical Services of Schlumberger
Le Palatin 1, 1 Triangle Cour du
92936 La Defense, Cedex
France
Main phone: +33 1 7112 2000
Main fax: +33 1 7112 2120
Markets in the Caspian Sea region
Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan
Schlumberger Logelco Inc.
51, Saint Kulmanov
060.011, Atyrau
Kazakhstan
Main phone: +7 3122 586006
Main fax: +7 3122 272430
Continental Europe
Austria, Bulgaria, Croatia, Czech Republic, France, Georgia, Germany, Greece, Hungary, Italy, Morocco, Poland, Portugal, Romania, Serbia and Montenegro, Spain, Turkey, Ukraine
Logelco Schlumberger, Inc.
8.4 Blvd. Titulescu Nicolás, 5
Bucharest floor 011141,
Romania
Main phone: +40 31 403 6700
Main fax: +40 31 403 6828
Libya
Schlumberger de Ultramar, SA
That El-Imad complex, Tower 1, Floor 3, main reception
PO Box 91931, Tripoli
Libya
Phone Main: +218 21 335 0060
Main Fax: +218 21 335 0064
North Africa
Algeria, Morocco, Tunisia
Servicios pétroliers Schlumberger, SA
Ouled Fayet route, Zone d'activité d'Amara, mucho 08
Cheraga, Alger
Algeria
Main phone: +213 2137 0950/53
Main fax: +213 2137 0948
Nigeria and the Gulf of Guinea
Benin, Cameroon, Guinea, Chad, Guinea Equatorial, Ghana, Ivory Coast, Nigeria, São Tomé
Schlumberger Nigeria Ltd.
17/19 Idowu Taylor St.
Victoria Island, Lagos
Nigeria
Main phone: +234 1 261 9200
Main fax: +234 1 262 3669
North Sea Region
Denmark, Ireland, Mauritania, Netherlands, Norway, United Kingdom
Schlumberger Norge AS
Risabergveien 3, Tananger
PO Box 8013, 4068 Stavanger
Norway
Main phone: +47 51 94 6000
Russia
Russian Federation
Schlumberger
Ogorodnaya 5A Lane Sloboda
Moscow 101000
Russia
Main phone: +7 495 935 8200
Main fax: +7 495 935 8780
The West and South Africa Region
Angola, Congo, Gabon, Kenya, Mozambique, Namibia, South Africa, Tanzania, Uganda
Schlumberger Technical Services, Inc.
Sonils Petroleum Service Center,
Luanda Port
Angola Base
Main phone: +244 2 310 913 Main
fax: +244 2 311745
Latin
America South America, Central America and el Caribe
Schlumberger Serviços de Petróleo Ltda.
Avenida das Américas, 1650 - Bloco 3
Barra da Tijuca - Rio de Janeiro
CEP 22640-101, Brazil
Main phone: +55 21 3541 7000
Markets in the region of Argentina, Bolivia, Chile
Argentina, Bolivia, Chile, Uruguay
Schlumberger Argentina, SA
Roque Sáenz Peña, Avenida. 1149, 13th floor
C1035AAG, Buenos Aires
Argentina
Main phone: +5411 4344 5100
Main fax: +5411 4344 5353
Markets in the Brazil region
Brazil
Schlumberger Serviços de Petróleo Ltda.
Av. Presidente Wilson 231-20 andar,
Rio de Janeiro, RJ 20030-021
Brazil
Main phone: +55 21 3824 6923
Main fax: +55 21 2533 0574
Markets in the Mexico and Central America region
El Salvador, Guatemala, Mexico
Dowell Schlumberger de México, SA de CV
Ejercito Nacional 425 Nivel 9, Col. Granada
México DF 11520
México
Main phone: +52 55 5263 3000
Main fax: +52 5 263 3191
Markets in the region Peru, Colombia, Ecuador
Colombia, Ecuador, Peru
Surenco Schlumberger, -Sucursal Colombia SA
Calle 100 No. 13-21, Piso 4
Edificio Megabanco, Bogotá
Colombia
Main phone: +57 1 219 5000
Main fax: +57 1 219 5040
Markets in the region Venezuela, Trinidad and Tobago
Suriname, Trinidad and Tobago, Venezuela
Schlumberger Venezuela, SA
Av. Río Caura, Torre Humboldt, Floor 23
Prados del Este, Urb. Parque Humboldt
PO Box 1608, Caracas 1080, Venezuela
Main phone: +58 212 907 4711
Main fax: +58 212 976 5321
Middle East and Asia Area
Australia, China, Egypt, India, Indonesia, Middle East and Persian Gulf, South and East Asia
Schlumberger Technical Services, Inc.
Dubai World Trade Center, Floor 9
PO Box 9261
Dubai, United Arab Emirates
Main phone: +971 4 306 7777
Main fax: +971 4 306 7199
Australasia region market
Australia, New Zealand, Papua New Guinea
Schlumberger Australia Pty Ltd.
256 St. Georges Terrace
Perth, Western Australia 6000
Australia
Main phone: +61 8 9420 4800
Main fax: +61 8 9322 3110
Region market Saudi Arabia, Kuwait, Bahrain
Kuwait, Bahrain, Neutral Zone, Saudi Arabia
Schlumberger SA Middle East
PO Box 2836
Al-Khobar 31952
Saudi Arabia
Main phone: +966 3 331 0300
Main fax: +966 3 331 1701
China, Japan, Korea, Taiwan
China region market, Japan, Korea, Taiwan
China Schlumberger, SA
Zhaowei Huadeng construction
14 Jiu Xianqiao Road, Beijing 100016
People's Republic of China
Main phone: +86 10 6474 6699
Main fax: +86 10 6431 9505 Brunei Darussalam
South East Asia Region Market , Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
Wellog Schlumberger (M) Sdn Bhd
16th floor (West Wing), Rohas Perkasa
No. 8, Perak Jalan
50450 Kuala Lumpur, Malaysia
Main phone: +60 3 2166 7788
Main fax: +60 3 2166 7800
Eastern Africa and Mediterranean region market Eastern
Egypt, Ethiopia, Iraq, Jordan, Syria
Logelco Schlumberger, Inc.
25 Misr Helwan Rd., Torre Zeiny
POB 790/11728, Maadi, Cairo
Egypt
Main phone: +20 2 768 4700
Main fax: +20 2 358 6522
Gulf region market
United Arab Emirates, Oman, Pakistan
Schlumberger in the Middle East, SA
Al Massoud Tower, 16th Floor
PO Box 21, Abu Dhabi
United Arab Emirates United States
Main phone: +971 2 633 3600
Main fax: +971 4 639 1499
Region market Indonesia
Indonesia
Schlumberger PT Geophysics Nusantara
Mulia floor Sentra 16, Jl.HRRasuna said Kav X-6 No. 8
Jakarta 12940
Indonesia
Main phone: + 62 21 522 7050
Main Fax: +62 21 2522341
India Region Market
Bangladesh, India
Schlumberger Services Asia Ltd.
Floor 14, Tower C, Building # 10,
DLF Cyber City, Phase II, Gurgaon - 122 002
India
Main phone: +91 124 335 5667
Main fax: +91 124 302 6200
Qatar regional market
Qatar, Yemen
Schlumberger Ultramar, SA
PO Box 8746
Doha
Qatar
Main phone: +974 469 8698
Main fax: +974 493 4311
North America
Alaska, Canada, Gulf of Mexico, US lands
Schlumberger Technology Corporation
300 Schlumberger Dr.
Sugar Land, Texas 77478
USA
market in the region of Alaska
USA Alaska
Schlumberger Technology Corporation
2525 Gambell St., Suite 400
Anchorage, Alaska 99503
USA
Main phone: +1 907 273 1700
Main fax: +1 907 561 8394
Canada Region Market
Canada
Schlumberger Canada Ltd.
525 Third Avenue SW
Calgary, Alberta, 0G4 T2P
Canada
Main phone: +1 403 509 4000
Main fax: +1 403 509 4021
Gulf
Coast region market Texas and Louisiana coasts, and the Gulf of Mexico
Schlumberger Technology Corporation
Tres Allen Center, Suite 1900
333 San Clay, Houston, Texas 77002
USA
Main phone: +1 281 285 1300
Main fax: +1 281 285 1673
Market of the region in the territory of the USA
Continental US
Schlumberger Oilfield Services
1325 S. Ashford lacteous Dr.
Houston, Texas 77077
USA
Main phone: +1 281 285 1300
Main fax: +1 281 285 1927
4.1.2 Investment in development and research
Schlumberger was founded in 1927 by two brothers who invented landline logging as a technique for obtaining data from oil and gas wells. Today Schlumberger continues to build on industry background to provide cutting-edge exploration and production technology to develop new advancements from field to surface. Since its founding, the company has invested a lot of time and money in research and development, a long-term strategy to support and grow its technology leadership.
This is why short-term business cycles do not affect your commitment.
With 25 R&D centers worldwide, Schlumberger places special emphasis on developing innovative technology that brings added value to its customers. Schlumberger constantly invests more in R&D each year than all other oil service companies.
Its investment in infrastructure to support growth continued throughout 2009.
Some of these relevant events are: the opening of a manufacturing and warehouse center for new facilities in Dammam, Saudi Arabia. Representing a 25 million dollar investment, the design of housing centers for manufacturing engineers specialized in the production of downhole wells. The center also provides a collaborative collaborative environment where teams from companies and Schlumberger can develop finishing solutions across Saudi Arabia and the Middle East.
In Brazil, it announced the signing of a joint cooperation agreement with the Federal University of Rio de Janeiro to build a key international research center on the university campus. This center will focus on research and development in complex deep water environments. It also completed a series of technology and acquisition agreements that enable product development and broaden its geographic reach.
In May Schlumberger acquired Techsia SA, a petrophysics software provider based in Montpellier, France. Techsia became the Schlumberger Petrophysics Software Development Center for creating solutions and techniques for the oil and gas exploration and production industry.
In September, it announced the creation of a joint venture with National Oilwell Varco to provide high-speed drilling telemetry systems to improve the efficiency and safety of oil and gas operations.
In November, Lonkar Services acquired a company that provides steel lines, landline services on test surfaces and piped wells in western Canada and the northern United States.
In November, a joint cooperation agreement was also signed with Technip to develop submarines and provide solutions for the integrity and surveillance of the flexible pipeline used in the transportation of hydrocarbons at depth on the high seas and also in the production of gas. This agreement will initially focus on activity monitoring systems for new coiled tubing applications as required in deepwater operations.
On February 21, 2010, Schlumberger Limited and Smith International, Inc. jointly announced that they had reached a definitive merger agreement in which the companies combine into one action for securities transactions.
Under the terms of the agreement, Smith shareholders will receive 0.6966 Schlumberger common shares, in exchange for each Smith share. The transaction is subject to various conditions including approval by Smith shareholders and customary regulatory approvals, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The closing of the transaction is expected to take place. in the second half of 2010.
Schlumberger announced that it had reached a purchase agreement to acquire Geoservicios, a privately held company owned by the French oil fields service company specializing in mud (sediment) logging, steel line and surveillance production operations.
The total value of the transaction, including the assumption of net debt, is approximately $ 1.1 million at the current exchange rate. The acquisition is subject to various conditions, including regulatory approvals, and is expected to complete in the second quarter of 2010.
During the quarter, Schlumberger repurchased 5.3 million of its common shares at an average price of $ 63.72 for a total purchase price of $ 337 million under the share repurchase program approved by the Schlumberger Board of Directors on April 17 from 2008.
4.2 Financial Resources
Changes in the economic environment worldwide have created lows and highs in oil prices, affecting the entire industry, including SLB. Some of these related facts are briefly shown below.
Schlumberger's 2007 revenue grew 21%, driven by strong demand for oilfield services, particularly abroad. Year-over-year growth rates reached 31% in the Middle East and Asia; in Europe / CIS (Commonwealth of Independent States) / AFRICA the rates have been 30% and 29% in Latin America. In North America, however, revenues were mostly unchanged from 2006. All Oilfield Services Technologies showed double-digit improvement, with drilling and measurement, as well as testing and integration and management of projects that recorded the highest total growth rates of those recorded in the historical year-on-year.
Schlumberger's 2008 revenue grew 17% to peak at $ 27.16 billion in a year that marked the price of oil price hike to $ 147 per barrel in July before dropping to less than $ 40 per barrel. at the end of the year. Within this volatile market, Oilfield Services revenues grew 20% with stronger demand in international markets. Year-over-year growth rates reached 28% in Latin America, 24% in Europe / CIS / AFRICA, and 18% in the Middle East and Asia, as well as 11% in North America.
All Technologies experienced double-digit growth, most notably in goods and services, drilling, measurements and line laying. This was the full bottom line, however, a rapid reversal that occurred late in the year in response to the worsening economic climate, and, after three-quarters of sequential growth, there was revenue in the last quarter caused by currency weakening local and reduced customer spending, in addition to seasonal factors.
In 2009, Schlumberger's revenue fell 16% to $ 22.7 billion as global economic conditions worsened and customer spending declined with lower raw material prices. Throughout the year, however, oil prices gradually recovered from levels below $ 40 per barrel in January to over $ 70 per barrel in December.
4.2.1 Income Statement
Schlumberger recorded revenue of $ 5.60 billion in the first quarter of 2010 compared to $ 5.74 billion in the fourth quarter of 2009, and $ 6.00 billion in the first quarter of 2009.
Income from continuing operations attributable to Schlumberger, before tax, was $ 747 billion, down from 9% to 20% year-over-year. Diluted earnings per share from continuing operations attributable to Schlumberger, excluding $ 0.06 of charges in the first quarter of 2010, was $ 0.62 compared to $ 0.67 in the prior quarter and $ 0.78 in the first quarter of 2009.
Income from continuing operations attributable to Schlumberger, including taxes, was $ 672 million or $ 0.56 per share, against $ 0.67 in the prior quarter and $ 0.78 in the first quarter of 2009. In the first quarter of 2010, Results included charges of $ 40 million for the reduction of future tax deductions for retiree medical benefits, as a result of the change during the quarter for patient protection and affordable healthcare in the United States, plus expenses of $ 35 million for the transaction costs in connection with the Smith International Agency, merger Inc. and the acquisition of Geoservices.
In Oilfields.
Service revenue was $ 5.10 billion and decreased sequentially from 1% to 6% year-over-year. Segment pre-tax revenue was $ 969 million, down 4% sequentially to 23% year-over-year.
WesternGeco had revenues of $ 472 million by 14% sequentially and 14% year-over-year. Income before Financial Performance segment taxes of $ 67 million by 41% sequentially, but increased 23% year-over-year.
The results of these operations are shown below in the annual income, balance sheet and cash flow report.
4.3 Financial Analysis
Valuation measures will be described and a table reflecting data from Schlumberger Limited (NYSE: SLB) based on data obtained from the New York Stock Exchange will be added later.
Market Cap: Current share price multiplied by the number of Schlumberger Limited (NYSE: SLB) shares for sale on the stock market.
Company value: it depends on the cash flow it generates as a going concern and on various internal and external circumstances.
Growth rate / PEG coefficient: The way in which progress SLB experiences in a given period is quantified.
4.3.1 Key Statistics
6.- CHAPTER 6: PROOF OF CONSISTENCY
7.- CHAPTER 7: EVALUATION
7.1 Evaluation of Strategic Options
We will use different criteria from which the strategies formulated can be evaluated and compared. We will choose the strategy to carry out and discard those that are not considered appropriate.
The process begins with the strategic analysis identifying the circumstances of the organization, and then studying the strategic options, filtering the possibilities.
Later we value the options, for this there are three criteria:
Opportunity: If the option is useful in the current situation of the company.
Acceptability: If the results of implementing the strategy are those expected by the groups participating in the organization.
Feasibility: If the strategy can be put into practice.
7.1.1 Opportunity Criterion
We value the opportunity of the strategy, in the circumstances in which the organization is operating, or wants to operate. It is the first selection of strategy according to criteria of rationality, so that the strategies not selected will be discarded.
For screening options we have:
- Classification methods: It is a systematic way of analyzing alternatives. The method can be improved by weighing the variables. Decision methods: The options are classified through a process of elimination of the others. Scenario planning: We generate possible approaches to the future evolution of our environment.
7.1.2 Acceptability Analysis
The acceptability criterion tries to measure if the consequences of implementing the strategy are acceptable or not for the different groups participating in the company. In general, we can point out that, for any group, a strategy is acceptable when it is expected to improve their situation, in the sense that the expectations of expected benefits exceed the costs derived from implementing the strategy.
For this we have:
- Profitability analysis: The analysis of the results will give us the acceptability of each option. Risk analysis: Depending on the degree of uncertainty that we find, we will consider some more acceptable options than others. Analysis of stakeholder reactions: We will analyze the reactions of the agents that are related to the company, regarding the strategy that we adopt.
7.1.3 Feasibility Analysis
It refers to the fact that the organization has the resources and skills necessary to apply the different strategies.
This option is screened by:
- Analysis of flow of funds: It is financial feasibility. Analysis of the profitability threshold: See from what volume of sales we can begin to cover company costs. Analysis of the deployment of resources: To assess the strategy we must assess which of them best fits to the configuration of its resources and competences.
7.2 Selection of Strategic Alternatives
7.3 Conclusion
Taking into account the analysis of each of the strategies to be implemented, we have decided that the most recommended strategy to apply is Diversification, since it is the area where the most points of possible improvement were found, taking into account that Schlumberger provides services focused on oil and gas, which as non-renewable resources tend to deplete their reserves in the short or medium term. In addition to this we must take into account the emergence of laws and products that seek to reduce the consumption of this type of fuel, since these produce the emission of gases that pollute the atmosphere and are highly toxic, such as carbon dioxide, carbon monoxide, hydrocarbons, nitrogen oxides, sulfur oxides and ozone.Different sources produce these chemical compounds but the main artificial source is the burning of fossil fuel.
As a more specific Diversification Strategy, we recommend the production of ethanol as fuel. Ethanol is a chemical compound that can be used either alone, or mixed in varying amounts with gasoline, and its use has been extended mainly to replace the consumption of petroleum derivatives.
The fuel resulting from the mixture of ethanol and gasoline is known as gasohol or alconafta. Two common mixtures are E10 and E85, with ethanol contents of 10% and 85%, respectively.
Ethanol is also increasingly used as an additive to oxygenate standard gasoline, replacing methyl tert-butyl ether (MTBE). The latter is responsible for considerable contamination of the soil and groundwater. It can also be used as fuel in fuel cells.
We make this Diversification recommendation based on data issued during the Sao Paulo International Conference on Biofuels: BOIFUELS 2008. Where it was analyzed that the world production of biofuel ethanol will grow 191%, from 55.7 billion liters manufactured in 2007 to 162,000 million in 2015.
The demand for ethanol in 2010, according to the study, will be 101,000 million liters, compared to an offer of 88,000 million liters.
This "scenario tends to balance in 2015, when the supply should be close to 162,000 million liters, compared to a demand that will be around 150,000 million liters", reveals the study by the United Nations Food and Agriculture Organization (FAO), the UN Economic Commission for Latin America (ECLAC) and the Brazilian development bank BNDES.
In 2007, the world produced 55.7 billion liters of ethanol, of which 26 billion in the United States (based on corn), 20 billion in Brazil (from sugar cane), 7.4 billion in Asian countries, and about 2.3 billion. liters in the European Union (EU).
"At those levels, ethanol production in 2007 represented about 4% of the 1.3 trillion liters of gasoline consumed annually worldwide," he noted.
"Biofuels and ethanol were not intended as integral substitutes for oil, but as additives," Brazilian José Graziano, FAO representative in Latin America and the Caribbean, told AFP.
By 2050 "our projection is that there will be enough space on earth for biofuel production, considering the addition of 5% biodiesel and 10% ethanol" in petroleum-based fuels, on average worldwide, Graziano said, who was responsible for implementing the Zero Hunger program in Brazil.
"With oil we will continue to live together as long as there is oil," Alicia Bárcena, executive secretary of ECLAC, told AFP.
The study by the FAO, ECLAC and the BNDES indicates that liquid biofuels - especially ethanol produced from sugar cane, corn and other cereals, and to a lesser extent biodiesel (…) - represent today 1.5% of the global matrix of transport fuels.
The document recalls that since 2000, global production of ethanol tripled and that of biodiesel almost quadrupled; that of oil, on the other hand, increased only 7% and, "according to some analysts, it will have to reach its maximum production in some years".
Instead, he adds that “in 2006, liquid biofuels were responsible for just over 1% of global renewable energy and just under 1% of the annual supply of crude oil, valued at 4.8 trillion liters (approximately 83 million barrels per day) ”.
"This scenario may change very rapidly in most of the large energy consuming countries due to the application of policies that aim at a much greater use of biofuels for the next decade."
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