Day two of the 2025 Offshore Technology Conference (OTC) took place Tuesday, May 6 in Houston, Texas. This year’s conference centers on the theme “Waves of innovation: Offshore energy excellence,” and much dialogue the second day indeed focused on the latest innovations and technology applications in the offshore sector. Another key theme that emerged throughout the day — how operators are pivoting strategies for offshore production in response to challenging times.
In a session titled “Offshore Production and Recovery: The Value of a Holistic Approach,” SLB’s President of Production Systems, Paul Sims, gave his take on key factors affecting the current offshore energy landscape, as well as SLB’s latest strategies and innovations.
Challenges
Although there are significant “headwinds” currently presenting challenges for offshore operators — notably the economic impact of tariffs, a slowing pace of oil demand, OPEC’s recent supply hikes, and dropping oil prices — Sims showed confidence.
“Offshore is a resilient space,” he affirmed. “Although Brent price is currently lower than it was last year, it won’t impact projects as much as one might think,” Sims said, noting that many projects can break even at $40. “We don’t make decisions based on spot price, but rather long-term outlook. Offshore projects are still very viable at $60,” he reassured.
Trends
Exploration in key offshore regions — Brazil, West Africa, the Gulf of America/Gulf of Mexico and Norway — have remained prominent over the past year, according to Sims. Noting SLB’s 80-year history of operations in Brazil, Sims emphasized the company’s concerted effort to advance technologies and local employment in the South American nation. SLB has secured several contracts for offshore Brazil in recent months, most notably an integrated services contract for all Petrobras’ operated offshore fields, awarded in December 2024.
With two-thirds of offshore production currently coming from mature assets, many industry leaders expect that number to increase to 80% by year 2030. “We’re looking at a shift to aging assets which draws a need for operators to focus on extending asset life,” Sims said.
Capital efficiency gains are often attributed to the shale industry in both the U.S. and Latin America, Sims offered, but stressed that equally important advances have been made offshore. Headway has been made to advance “step-outs,” extending production facilities, achieve longer well lengths, and operate at higher pressures and temperatures. “Short-cycle” projects are also a growing trend, Sims noted, with shorter project time spans becoming more attractive in times of uncertainty.
Advances in completions technology. Earlier in OTC’s second day, SLB officially announced the launch of its Electris completions technology, which Sims touched on during his session. “The industry has largely been dominated by standard hydraulic completions, but there are limitations and risks to consider in challenging environments,” Sims said. “Electric completions are going to become more mainstream,” he continued. “We’ve found in early usage that facilities engineers like being able to address bottlenecks on the surface. This is the power electric completions systems can bring, so we’re very excited.”
Source: Ivy Diaz, Digital Editor, World Oil