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TotalEnergies (TTE), SLB to Develop Innovative Digital Solutions

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TotalEnergies SE (TTE - Free Report) is set to collaborate with SLB (SLB - Free Report) to develop innovative subsurface digital solutions and contribute to more sustainable hydrocarbon production.

With the solarization of SLB's industrial sites and digital innovation, TTE will expand its multi-energy collaborations with SLB. This should enable the development of cutting-edge next-generation software, digital applications and new algorithms for use in geoscience. Owing to these innovative modeling technologies, the companies will better utilize the analyses of geological reservoirs and basins in the oil and gas sector to reduce emissions.

Digital Technology for Sustainable Energy

The collaboration is aimed at creating a next-generation software that is accessible in the cloud by combining TTE and SLB’s years of operational experience and software development skills.

With the use of these new digital technologies, subsurface modeling will be enhanced for increased responsibility and production optimization. In order to fulfill future demands for geological carbon storage and lessen the carbon intensity of the operating fields, the companies will make use of the potential of the data gathered through artificial intelligence.

The new software will be built on the earlier efforts of both partners with Intersect, a latest-generation reservoir simulator.

This new initiative is in sync with TotalEnergies’ "More energy, less emissions, more value" strategy. The co-development will help enhance TotalEnergies' worldwide activities and create a new source of income.

Focus on Clean Energy

A transition toward clean sources to produce energy is quite evident in the energy space. TotalEnergies is gradually positioning itself to meet future energy needs by diversifying its energy mix.

TTE continues with its strategic acquisitions in high-potential areas and sells non-core mature assets to achieve its long-term objective of improving production by focusing on the promising hydrocarbon-producing regions of the world.

TotalEnergies has one of the best production growth profiles among the oil majors that is characterized by an upstream portfolio with above-industry-average exposure to the faster-growing hydrocarbon-producing regions in the world. The company also benefits from solid production from new startups.

TotalEnergies' goal is to reach net-zero emissions by 2050, and it has been expanding its global renewable energy portfolio through solar, wind and power storage. At the end of 2023, TTE’s gross renewable electricity generation installed capacity was 22 gigawatts (GW). It will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.

Per the International Energy Agency (IEA), globally, 3,700 GW of new renewable capacity will come online over the 2023???2028 period, driven by supportive policies in more than 130 countries. Per IEA, in 2028, renewable energy sources will account for more than 42% of global electricity generation.

Peer Moves

Along with TTE, other companies like BP plc (BP - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also set to lower emissions and increase renewable energy operations.

BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity in a decade.

BP’s long-term (three to five years) earnings growth rate is 4%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 13.5%.

ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years.

XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets. By 2050, it intends to achieve a net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.

XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 4.8%.

Price Performance

In the past six months, shares of TotalEnergies have risen 0.9% compared with the industry’s 0.5% growth.   

 

Zacks Investment Research
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Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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