SLB SLB, a global oilfield services firm, has announced a collaboration with the British energy giant Shell plc SHEL. Under this partnership, SLB will deploy the Petrel subsurface software across Shell’s global asset base. The Petrel subsurface software, developed by SLB, is a powerful tool for exploration and production that enables its users to analyze subsurface data and gain more information about the reservoir.

The software will be aimed at enhancing Shell’s digital competencies. The adoption of this technology is also expected to help Shell improve cost efficiency. The Petrel software, now equipped with advanced AI capabilities, will help Shell with seismic data interpretation. The subsurface software will generate seismic interpretation processes to help Shell analyze this data in a structured way to improve accuracy and efficiency.

By using Petrel across all its assets, Shell aims to standardize its infrastructure and streamline workflows to improve consistency and efficiency. Furthermore, the software should help the company scale digital solutions faster, making it more cost-efficient.

The collaboration aims to deploy this software as a means to bring together several geoscience workflows that will improve the companies’ knowledge of subsurface conditions throughout the lifecycle of its assets. The collaboration emphasizes the importance of forging partnerships that focus on innovation.

SLB mentioned that the partnership will focus on making Shell technologically more efficient, thereby aiding its digital transformation process. The partnership will utilize the Petrel software for interpreting seismic data across conventional exploration and production workflows as well as the newer energy transition processes.

SLB and Shell’s partnership aims to progress Shell’s digital transformation journey by enhancing its seismic data interpretation capabilities. This will help the British energy giant streamline workflows, resulting in cost efficiencies. Furthermore, deploying Petrel software across all its assets will enable Shell to understand the geological conditions of its reservoirs and identify the risks and opportunities associated with them.

Zacks Rank and Key Picks

Both SLB and SHEL currently have a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC and Nine Energy Service NINE. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock Inc. is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, Archrock is expected to witness sustained demand for its services.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. NINE operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for Nine Energy’s services is anticipated to increase, which should position the company for growth in the long run.

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