SLB, Nabors (NBR) Forge Alliance to Scale Drilling Automation
SLB SLB, the oilfield service major, decided to join forces with drilling contractor Nabors Industries Ltd. NBR on automated drilling solutions. Per the terms of the agreement, the companies will offer seamless integration of the drilling automation applications and rig operating systems. The pact is designed to enhance customers’ well construction performance and efficiency.
The new integration will grant customers access to a comprehensive set of automated drilling technologies. This will provide them with greater flexibility to use the current rig control systems on either SLB’s PRECISE system or Nabors’ SmartROS rig operating system.
The aforementioned agreement followed the successful investment and technology partnership agreement of SLB with Geminus AI. The latter granted exclusive access to SLB to deploy the first physics-informed artificial intelligence (AI) model builder for oil and gas operations.
Geminus’ model builder combines physics-based approaches with process data to produce AI models with high levels of accuracy. These models can be deployed faster than traditional AI models. A representative of SLB has mentioned that the company’s partnership with Geminus AI can present a significant improvement in operational performance for its customers.
Geminus’ ability to collectively utilize AI methods and physics-based simulation data will allow customers to create hybrid models of operating assets. These models can be adjusted and optimized in real-time against numerous scenarios, including reduction of operational expenses, increased productivity and minimization of carbon emissions.
Both companies are positive about the prospects of the collaboration. According to SLB, the collaboration with Nabors is set to provide greater access to high-performance drilling capabilities to E&P companies and drilling contractors across the globe, including Neuro autonomous directional drilling. Nabors, in its statement, mentioned that this partnership is a “great example” of how industry collaboration can overcome barriers to increase the adoption of automated drilling solutions.
Zacks Rank and Other Key Picks
Currently, SLB carries a Zacks Rank #3 (Hold), whereas NBR has a Zacks Rank #5 (Strong Sell).
Investors might want to look at some better-ranked stocks in the energy sector, such as Oceaneering International OII and Enbridge Inc. ENB. While Oceaneering International currently sports a Zacks Rank #1 (Strong Buy), Enbridge holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is a market leading supplier of offshore equipment and technology solutions to the energy industry. The company has projected an increase in free cash flows for 2024. The bright outlook is supported by the growing market demand for its mobile robotic forklifts and underride vehicles.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.
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Schlumberger Limited (SLB) : Free Stock Analysis Report
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