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Engineer in front of machinery
our strategy in action

Transform the core, build for the future

Our strategy is focused on enhancing our competitiveness today, while evolving our portfolio to continue to lead in the future. It requires focus and innovation in three key areas:



Core Competitiveness

Leading product companies

We are improving the way we run our businesses and how we build and deliver our products and services for customers, while evolving our portfolio. In 2019, we improved internal operations by streamlining our operational footprint, optimizing our supply chain, and managing our assets more efficiently. We delivered higher productivity for customers through strong operational execution and closer collaboration. This includes our work with Equinor in the North Sea, where we drilled more than one million feet with best-in-class performance. In addition, in partnership with ADNOC Drilling, we mobilized 10 rigs and drilled over 550,000 feet on the first 33 wells with a 26 percent improvement in drilling efficiency. In addition, we gained traction with our Subsea Connect approach, which combines solutions from across our portfolio with a collaborative project approach to improve project economics. Key wins from the year include the Balder X project in the North Sea, Ichthys gas field offshore Australia, and the Greater Tortue Ahmeyim development. We also continued our liquefied natural gas (LNG)  leadership position, winning contracts for every major LNG project sanctioned in 2019.

The ‘must do’ fundamentals to drive higher cash flow and returns


Drive internal efficiencies

Improve productivity and project economics

Evolve our priorities and portfolio

We’re running our business better

~60

basis points of margin* improvement in 2019

We’re improving project outcomes

400

drilling days saved on the first
33 wells with ADNOC Drilling

We’re growing along the gas value chain

71

MTPA of LNG projects awarded in 2019

* Margin improvement is based on adjusted operating income, which is a non-GAAP measure. Please refer to the GAAP to non-GAAP measures table at the end of this document for a reconciliation.



Build for the future

Leading through technology

We take a disciplined approach to product development to continue our technology leadership and drive returns. We are strengthening our technical and digital capabilities and transforming our supply chain through collaborations with leaders in AI, machine learning, and cloud and edge computing, and through advancements in additive manufacturing. During the year, we introduced more than 75 new products and received more than 2,700 patents globally. We formed collaborations with C3.ai and Microsoft to deliver AI solutions, and launched our first commercial application Reliability. In 2019, we produced more than 20,000 3-D printed parts and qualified more than 200+ individual components, doubling our total parts qualified to date. We are also creating new digital inventory and printing parts and products closer to the point of use, resulting in faster repairs, qualifications, higher productivity, and lower carbon output. Leveraging technology across our portfolio creates value for customers and our operations.

The opportunity to capitalize on new markets


Incubate and invest in innovation

Strengthen AI & digital capabilities

Transform design and manufacturing

We’re investing in innovation
 

$687M

investment in research & development in 2019

We’re advancing energy technology
 

2,700+

global patents
awarded in 2019

We’re transforming our supply chain

20K+

3D-printed parts produced, 200+ parts qualified



Build for the future

Leading through the energy transition

We are deploying our existing low-carbon solutions and building our new-energy portfolio. In 2019, we installed the world’s first remotely controlled automated directional drilling system for Equinor, improving safety and productivity, with a lower carbon footprint. Our LM9000 aeroderivative gas turbine reduces NOx emissions by 40% and overall CO2 equivalent emissions by up to 25% compared to alternative turbines, and we have reconfigured our NovaLT gas turbine generator technology to operate 100 percent on hydrogen. Our core compression technologies can also be applied in Carbon Capture, Utilization, and Storage, as well as help deliver mechanical storage of energy for use in peak demand for renewables. In addition, we have a suite of technologies that can monitor, manage, and reduce fugitive emissions and flaring, as well as condition monitoring for renewables. For example, we used drones coupled with AI technology to inspect more than 30 well pads per day for methane emissions, oil leaks, and other potential problems for a customer in the Permian Basin, and we have monitoring devices deployed on more than 32,000 wind turbines globally, or approximately 10 percent of the total wind power today.

The opportunity to capitalize on new markets


Eliminate our carbon footprint

Reduce customers’ carbon footprint

Grow our new energy portfolio

We're reducing our own emissions

175+

facilities powered by renewable energy globally

We're reducing customer emissions up to

50%

for methane and related emissions with deployed Flare.IQ applications

We're enabling renewables
 

32K+

monitoring systems installed on wind turbines over the last decade



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