UPSTREAM: What impact will the energy transition have on the operations of oil and gas companies over the next five years and beyond?
SALIGRAM: Our industry is well positioned to lead the energy transition and help deliver sustainable forms of energy to the market.
From an energy services perspective, we expect the energy transition to gain a greater foothold in the coming years, and we are here to support and drive this progression.
We are continuously collaborating with our customers and training our workforce to use our deep domain knowledge and expertise where we operate to advance geothermal production, carbon capture, storage and usage, plug and abandonment, and additional offerings.
We expect that our global footprint, supply chain expertise, technology innovation and process safety discipline will continue to form a core part of the world’s energy infrastructure requirements.
UPSTREAM: Is natural gas becoming more attractive than oil for companies and, if so, what implications does that have for the business?
SALIGRAM: Natural gas is a crucial driver in the energy transition.
While our business currently serves both oil and natural gas operations globally, we are well-positioned to serve our customers' needs today and into the future with our robust technology portfolio.
There are natural advantages for natural gas as a transition fuel and we are actively developing additional technology to help customers drill for and produce gas.
UPSTREAM: How can large-scale, multi-billion-dollar conventional oil and gas developments, including in deep waters, continue to compete for capital?
SALIGRAM: Future large-scale development will rely on the quality of returns.
Developments, such as in deep water, generally have a low break-even cost, which is validated by today’s commodity environment and supports returns on capital deployed.
While capital discipline will continue to play a critical role in our industry, as we look ahead, we believe the carbon footprint of conventional offerings will also be evaluated as a key factor to advance additional large-scale developments.
UPSTREAM: The debate around COP26 revealed widespread perceptions that the oil and gas sector is more concerned about preserving the value of fossil fuel assets than engaging in real energy transition. Such divisions can be seen when the different "colours" of hydrogen are discussed. What role do oil and gas companies play in the energy transition, and how do they build trust?
SALIGRAM: We believe the world will only benefit from the greater availability of sustainable energy sources and are committed to support the growth of these markets. We are starting to see emerging markets around areas like hydrogen, carbon capture, utilisation and storage, and geothermal and many other areas that multiple oil and gas companies are involved in.
There’s no industry better suited to lead the energy transition than our own.
As with most things, actions speak louder than words and the investments that oil and gas companies are making, as well as the results being achieved, will demonstrate intent.
UPSTREAM: Where do you expect the oil price to be by the end of this year? And in five years? What are your hopes and fears for energy transition?
SALIGRAM: We are not in the business of predicting the future; however, we remain confident that we are in the early phases of a multi-year upcycle, which is supported by the current commodity market.
During this time, it’s vital that we, as an industry, use this time wisely to invest in the energy transition and structure our businesses to make meaningful contributions.
We all have a role to play, and Weatherford is well-positioned to help lead this journey.
