foreign [Music] thank you everyone for joining us and Welcome to our session today we're going to be discussing the energy Industries transformation and how it's being enabled uh through Innovative Partnerships and through digital technology after a brief overview of what we're seeing across the energy sector I'll be joined by two of my colleagues from the sector uh two of our strategic Partners actually Schlumberger and Snyder Electric who will share some very useful insights the world is facing many many complex energy challenges security supply and affordability cyber security threats and attacks on critical infrastructure energy access for billions of underserved people around the world is still a big Challenge and lastly sustainability and decolonization are definitely top of mind and as we've seen in the last 12 months the energy sector is grappling with the challenge to provide enough energy to the world and to do it while simultaneously trying to lower emissions we've seen some very dramatic examples of the challenges facing the climate over the summer and the last winter with extremes in terms of heat and cold and the impact it's having on the reliability of energy delivery the oil and gas industry in particular has to simultaneously respond to multiple challenges one around accelerating the energy transition goals that are being articulated by many and two fulfilling the market demands and Urgent needs of energy Supply today particularly given the context of what's happening in Ukraine um and lastly I'll say solving this requires a broad set of solutions it requires new Innovations and it requires collaboration most importantly from all across the sector as well as the public and private aspects of the energy sector digital Technologies are a key lever in enabling organizations across the energy sector to achieve any objectives around decarbonization and energy access and reliability Global energy man demand is expected to increase almost 50 percent over the next 30 Years in concert with the population increasing from seven and a half billion people today to 10 billion people by 2050 and this is going to be driven particularly by the Asian and African countries the market forces that are driving this transformation across energy start with the energy consumer and integrating more Renewables and distributed energy resources into the power supply leading to the need for digitizing and modernizing the grid and developing new grid operating models I'm sure we'll hear a little bit more about that from from Scott there's also the need as I said earlier to accelerate the energy transition as well as sustainability and lastly cyber security as I've traveled around the world talking to my colleagues in the industry cyber security is top of mind I think about the colonial pipeline attack in the U.S I think about what's going on between Russia and Ukraine and at the end of the day we know a few things data breaches are up we know that the cost of a breach for the energy sector is almost double that double the global average of any other industry and the energy sector is increasingly targeted and more vulnerable Microsoft as a matter of fact is one of the most targeted and attacked organizations on the planet in 2020 for example we blocked over 9 billion malware threats and we processed over 24 trillion signals per day the employer around 8 500 people making us one of the largest security companies on the globe and recently uh we acquired a company called cyberx a leading iot security platform providing end-to-end itot protection uh that will help the energy need address the environments around complex security I think I'm going to stop there and uh turn it over to my colleague who leads uh the energy and Industry commercial team on on behalf of Microsoft uh I'll turn it over to you Daryl thank you so much um thank you for an amazing opening and uh we'll transition here to a panel um with you and also two of our esteemed guests um trip verandin and Scott Hardin we'll we'll talk a bit um about energy energy transition expand on the comments that you've um you've shared and really um especially for this ignite audience we want to focus uh on technology so um first of all to introduce our our guests trick veranden his director digital subsurface Solutions at schleming and Scott Hardin is the CTO at Schneider Electric I want to ask trigva the first question here uh trigger would you talk a little bit about how Schlumberger thinks about Innovation and leveraging it to um to explore white spaces in your business we have a lot of tracks of innovation so I'll speak about a couple of the things we've been doing so first of all in our industry we we are clearly a the market leader uh largest market share and so on and so forth and when uh in in the software space and when we saw the opportunities that the digital transformation was offering to us we we decided to be the once disrupting ourselves basically the innovators dilemma we we had to um take the take the industry forward and we we made a leap of commitment if you like into into transitioning that and defining new technology that there is going to be replacing uh the uh the existing um cash generators for the company and I would like to bring up another aspect that we're doing we have when it comes to creating digital technology we have essentially particularly two pieces of the organization that work in a in a mode of if you like constructive friction we have a product product management organization which is looking if you like outside in which is representing the customer which is representing uh the domains that we are addressing the workflow needs um and and listening to what the what the industry needs are that's very much an outside in drive it will come up in with Innovation to a certain extent and will also come up with with the needs of the customer and the market then we have the technology organization which is essentially the software engineering organization Architects uh the technology experts and they take an inside out perspective and through this constructive friction we are driving um uh Innovation from both ends sometimes you will get Innovation by looking at the technology and new technology bring a new Solutions so as a tool basically looking for a problem but sometimes that can be very useful and other times we will drive it out from a need from from the market and I think that's a key component to what we have achieved in in the market where we are today where we have traditionally been and also how we have been taking on the digital transformation from our company thank you very much for that framework at the the outside in and also inside out and sort of um creating Innovation where that that tension um between the two Frameworks meet um speaking of of white spaces um a transition uh to Scott here Scott Schneider Electric recently made some Acquisitions to enable Smart grid use cases as the CTO for Innovation uh tell us a bit about how this move fits into your Innovation cycle yeah thanks a lot for that and thank you for having me as part of this conversation really excited to be here this is fantastic um we approach innovation in two ways as well and then trigvi like your comments around you know inside you know outside and inside out we kind of do something quite similar you know Schneider has been around for 180 years and you know our business is really aligned into two verticals which is energy management and Industrial Automation but there's a new dimension to our business as we go through this rapid evolution of you know Innovation and how we approach Innovation as a business and digital is really the undercurrent there it's the theme to all of what we're doing and so from uh from uh from our traditional businesses Innovation is incremental and what the Innovation organization which is a standalone team that I'm part of is is responsible for is really looking at growth and and where we see growth aligned you know to this huge problem that we're all trying to solve around you know energy transition is the electrification of everything you know we do understand electricity you know there's a theme that we talk about a lot around you know electricity 4.0 and it's really a transition within a transition for lack of a better term because as the energy sector broadly you know moves from you know many different methods by which you know energy will be delivered and consumed the energy system on the power and Utility side is also going through a massive amount of disruption because it's Legacy infrastructure that was not designed to work you know in the way that you know the energy of the future the Energy System of the future needs to operate and so we have made some recent acquisitions a good good friend of mine on the call here in this meeting told me what's that pace man matters and we recognize that and and for us you know Pace has come by way of our organization and so Essie Ventures sits within our organization and what we have seen is there are some really interesting disruptors that are participating in this space now and the way that we have approached this is by being very selective in who we invest in from a disruptive perspective we can bring those entities together to actually do something that's more transformative and so that's what we're focused on well Scott that's very helpful um acknowledging that they're that outside in outside in and Inside Out framework is also relevant but then also really building around the the big energy transition needs out there that makes a ton of sense so Daryl in your overview you talked about some of the energy transition Trends uh would you share a bit about how Microsoft is adjusting to these trends yeah so oh I would say a couple of things first I would say that uh Microsoft about two years ago committed to becoming carbon negative by 2030. we also said that by 2050 we would take all of the carbon out of the environment that we've put in since Microsoft was founded in 1975. in addition to that we have uh talked about how by 2025 we're going to run all of our campuses and all of our data centers on 100 renewable energy in addition to that we uh established a climate fund a billion dollar climate Innovation fund to support new technology because we believe a lot of the technology that's required gonna be required to deliver on Net Zero by 2050 or sooner globally has to be created has to be invented um we also are making some big bets on emerging Technologies like carbon capture and storage uh like uh doing more with around methane detection and with some very Innovative and interesting projects around the world from the North Sea to the Permian Basin in Texas and lastly we are supporting um our customers and our partners as they achieve their own decarbonization efforts by helping them future-proof their businesses and ultimately hopefully leveraging their digital to help modernize and future proof their existing businesses but also leveraging ditto to accelerate the energy Transit transition and the last thing I would say is that for us partnership is absolutely essential there's no way we can get to where we need to get to on our own and there's nowhere any company on the planet can so for us farming Partnerships with the right companies right customers and partners who are leaning in like Slumbers they like Snyder and others is is incredibly important to us being able to to deliver on the world's ambition around its relationship to uh Net Zero Carol thank you very much and and um I think this is a topic that is very very relevant for uh the ignite audience right is that sort of innovation with Microsoft and thanks for laying out you know examples of how we're doing that and it would be great actually to hear um from from you Scott you know just thinking about the the work you're doing and the work that you will you will be doing in the future there's a lot you know with especially with the Acquisitions and Innovation cycle you described earlier what are your expectations um when it comes to co-innovation with a partner like Microsoft yeah glad to speak to that and thanks for that question we see the we see the relationship with Microsoft is essential because you know we understand electricity we've been participating in this space you know for a long time obviously and and but as we bring the Investments that we make together into you know a platform perhaps like a domain-specific platform we need a partner like Microsoft that has a global resource that is the cloud that can be utilized for energy systems of the future and so where Innovation really matters and I think that the theme that we should really be talking about it more is is co-innovation where co-innovation matters is really understanding how working together can truly accelerate not only our roadmap can help accelerate Microsoft roadmap but also can help accelerate bringing the solutions that are truly needed to to the industry to help with our objectives around to decarbonization uh Daryl back to you uh would you share about how Microsoft is structured to drive Innovation initiatives that enable the energy industry sure couple of words and I'll be uh I'll be brief I mean I think the first thing I would say is that we're a technology company focused on enabling others to achieve more not only achieving more but achieving more at scale which also means uh a couple of things but it really means one thing that I want to emphasize is that when we work with our customers when we work with our partners the intent is to never compete with customers and partners in their businesses we're very very clear about that the second thing I say is that we offer the energy sector an end-to-end Suite of digital capabilities for productivity for collaboration and intelligent insights from data and the third thing I'd say and actually the most important thing I would say is that we have an unmatched ecosystem of domain Partners as a matter of fact it's one of the things that attracted me to Microsoft is unmatched ecosystem of domain partners for the energy sector that we believe will help to maximize digital uh and business value and our desire our design are in the short term median term and long term is to collaborate and co-innovate with partners and customers to truly help them differentiate the value that can be delivered through their businesses so we're really excited about these things Sarah thanks so much for laying that out oh Scott please go right ahead yeah I'd love to chime in on that just because it's it's a theme that's really been discussed a lot within Schneider one of the things that you know we have heard Sacha say and we've heard Daryl say is is that Microsoft really is creating a platform for platform creators and that resonates really well with us because as we look to create capabilities for prosumers for grid management for other capabilities you know we truly see that that's how our relationship really can coexist and actually co-innovate together and so I I'm really glad to hear that theme come up but it's great to hear those learnings and best practices are very aligned across across companies and Scott thanks for sharing that and Scott just taking with you for for a moment here you know um as you and this is very relevant for the ignite audience um you know sort of working with Microsoft as an innovation partner uh you know what are your expectations um from co-innovation with a partner like Microsoft yeah yeah I've been glad to speak to that because I think it's incredibly important you know for the direction that we're headed you know we as a company understand a lot about energy management we understand Industrial Automation but but we don't understand the cloud to the level that Microsoft has truly invested in creating a global resource and so our expectations here is to really partner and to learn how we take advantage of a lot of the capabilities that Microsoft has created not only when it comes to Cloud as infrastructure but some of the key capabilities that Daryl touched on earlier when he was talking about like cyberx the cyber security capabilities because now we are starting to look at those as essentially capabilities that we would embed within the solutions that we bring to Market that's excellent Scott thanks for that and um trigger a similar question uh to you tell us a bit about schlumberger's Journey with Microsoft and how you've worked together yeah uh today I need to start with that today we are uh we have chosen Microsoft test District partner for uh our Cloud technology and and we have a long partnership relation to Microsoft absolutely but when we start the dark load transition we started with Microsoft and another cloud service provider as as two partners but it was very clear that that Microsoft had a very strong commitment to the energy industry and and our customers uh chose to work with Microsoft and we chose to increase the partnership we have with Microsoft uh so so that started out in a very um I mean started out and it gradually kind of converged to one single strategic partner which of course simplifies matters in addition to that we we had a joint customer who said we want to really work closely with both of you uh to drive the the digital transformation and that became a three-way partnership that has been very decisive informing also the the one-to-one partnership in Microsoft and Slumber machine and today we are working very closely together to deliver both complex super complex very scientifically deep Technologies to the to the industry uses the uh the people who make the their end decisions if you like uh heavy duty workstation software that sometimes are up to half a terabyte of RAM and multiple gpus just to give a bit of uh of of connect or pointers there in terms of the size and complexity of the infrastructure as required delivered over the cloud high performance Computing both for seismic processing and and and simulation uh of of fluid flow and so on which are key tasks that we're looking at and also uh lately I would say one of the key other key challenges we have and particularly in in our industry is data residency so how do we make the cloud accessible in countries where they say our data are never going to leave the country uh and and these are some of the challenges that we're working very closely with Microsoft to address today to deliver the performance cost efficiently and accessible within the constraints that the market is is is throwing at us and but I would say that as we are looking at it know more and more of our customers or joint customers are coming back to us and say we really need to work this in a three-way partnership so I I see just the proliferation of these three-way Partnerships to help Drive the customer transfer transformation into digital and where we complement each other very well and I really um like the words that Daryl is saying Microsoft never competes uh with your partners and that is what makes it very easy for us to work very closely with Microsoft because we can work in a trusted relationship we can we complement each other uh as Scott as well was saying and and and and and and that helps deliver Great Value to our customers oh thank you trigger but you know listening to you and and Scott right there themes are that connect to the framing that that you all set up initially around outside in and inside out but also there's this um theme around trust as well uh and and sort of customer centricity that's that's very fascinating looking at the other side um of that relationship now going back to Microsoft and Daryl it would be great to to hear the Microsoft point of view on innovating with Partners if you could share a bit about that yeah I mean I was thinking while trigger was talking about something I heard when I attended the uh ons conference since the banga Norway recently one of the speakers said something around the role at the energy sector has to play with countries communities and customers and I remember sitting in the conference thinking that actually applies to Microsoft as well because we're deeply committed to partnering with what countries are governments and cities and customers and all organizations across the energy and Technology sector to jointly develop and that's the key word jointly develop and partner to build innovative solutions to address the current needs of energy or around energy as well as the climate needs that are ongoing and growing without and it's important that I say this without leaving anyone behind Innovation and collaboration are absolutely required to oxygenate Partnerships and to deliver on all of our Ambitions I think about some of the things we're doing for example our public and private partnership uh with the CCS project in the North Sea called Northern Lights where Microsoft is a part of this joint effort with the Norwegian government as well as Ecuador shell and total seeking to standardize uh and scale carbon capture and storage across Europe this is important because we can't get to Net Zero as a planet without CCS working I also think about the role that is established credible capable domain Partners like slumbersville and like Snyder Electric mean to this journey as well as digital Natives and startups but companies like Schneider Schneider Electric and Slumbers are absolutely key I also think about the fact that Microsoft decided a few years ago to become a founding member of a clean energy star think tank in Houston called Green Town Green Town Labs it's a climate Tech startup actually an incubator to help establish many new Innovative Climate Technologies that we think will be key I guess the last thing I'll say uh is the bottom line for us is that partnership make everything possible and it will help enable our customers and it will help enable the journey that we're all on to protect and to make the planet as uh productive and make energy as accessible and as clean and affordable as possible Daryl thank you so much for for those comments and I would I'd love to stick with that energy transition theme as we come closer to the end of of the panel here um I have three more questions um for you trig versus cotton and then Daryl will give you the final word um trigva you know we recently announced a new product for the energy industry Microsoft energy data services how does this enable um the energy transition in your point of view well I mean it is um perfectly fit for for that and especially as as Daryl was referring to especially focused on the carbon storage carbon storage will have to be a component at least for the for the next several decades uh to achieve and the Net Zero Ambitions of the world that we have today and we're gonna need to be smart about it and in the Upstream if you like an oil and gas industry if you like we haven't traditionally been that smart about it we had uh numerous silos between individual vendors applications having data in different places between even applications within single vendors having silos or bringing with them silos so the the data landscape for our customers um today uh sadly to say is is quite a spaghetti dish if you like so uh with the with this new initiative that we're working jointly on Microsoft energy data services we are trying together with the whole industry through its sort of component part of the OSU Forum but trying to standardize on one data platform for uh for the entire industry and that is critical uh for a number of cases that's critical because it is going to make and it's going to avoid those silos and make things more efficient okay that's pretty obvious but it's also going to help us both facilitate a uh Innovation ecosystem because now instead of having to build your new data Silo if you like when you're innovating you can rely on something which is rich in data within every customer the same architecture everywhere OSU is the foundation format and the the collaboration we have we industrialize it bring it to a real value and then of course ultimately if you're going to have success with artificial intelligence and machine learning you need a lot of data and you need data from multiple sources and data Silas will not be providing you that but unified data platform will be providing you that and all of these things we're going to have to be super smart because carbon storage is not going to be straightforward and we will need to drive the Innovation forward and that's what I see we are enabling with this collaboration thank you trigger so the you know with um this technology builds a foundation and then enables this Innovation uh cycle that will drive and enable things like carbon capture it makes a ton of sense I appreciate you framing it up that way uh Scott similar question for you how are your Innovation initiatives driving the energy transition yeah yeah I want to build off of what trigger just talked about because I think it's incredibly important I think that trade we talked earlier about sovereignty and I think that that's important but I think that data standards and the example that you have set working with Microsoft around osdu is is something that you know we in the electricity industry are going to pattern after as well I think that there are standards that are missing that are going to be essential for the interoperability that's going to be required you know for the Future transactive Energy Systems and I think that you know when we talk about the topic of trust trust is established by openness and this is where our partnership with Microsoft you know where we looked at Microsoft as really being that center of gravity that is bringing the appropriate mix of Partners across the ecosystem to focus on that one singular problem which is to establish those standards that we can all participate in to deliver the solutions that are going to be required for energy transition fantastic and if I may if I may jump in there it's got a very good point actually we have the same in in our industry whether as you look at it as oil and gas or carbon storage or the combined thing there the partnership with Microsoft has enabled uh the Microsoft having the trust of being a vendor neutral or software provider neutral player if you like so that partnership that trust that Microsoft can contribute and the domain understanding that slumberger can contribute is is a really fundamental component in making uh making a success in the collaboration thank you so much um we've come to the end of the panel and I just want to thank all the panelists there's sort of some some key themes I wanted to call out one the energy transition is real and uh Innovation uh is needed to to enable it to to unlock Solutions like smart grid and carbon capture um also we talked about uh Frameworks around co-innovation across our various companies and and there were some fantastic ideas that came out of that and then finally Innovation requires partnership and that partnership is is built on a foundation of trust so I would like to thank trigva and Scott and Daryl for a fantastic panel and to the ignite audience thank you for watching this and enjoy the rest of ignite thank you so much
2022-10-16