Nabors Industries announces energy transition initiatives
Nabors Industries, a technology provider for the global energy industry, announced elements of its energy transition strategy.
Among these elements, Nabors introduced Nabors Energy Transition Solutions (NETS), a portfolio of technologies designed to drive energy efficiency and emissions reductions for the company and third-party customers.
To date, the line-up includes proprietary emissions reporting and analytics software, engine management controls, energy storage systems, hydrogen injection catalysts, carbon capture technology and fuel enhancing additives, as well as traditional high-line power and dual-fuel offerings.
Looking ahead, the company expects to extend these technologies beyond drilling to the broader upstream segment. Nabors is also exploring opportunities to extend certain solutions beyond oil and gas to other industries, such as to the hundreds of thousands of engines used today in maritime applications and power generation.
Nabors has also engaged in venture investment opportunities to enter several high growth potential segments in these emerging lower carbon markets. Initial targets include alternative energy sources such as geothermal and hydrogen, energy storage and carbon capture, including utilization and sequestration technologies. These efforts fall within the Nabors Energy Transition Ventures (NETV) group.
To date, the company has partnered with three geothermal companies, Geo-X Energy, SAGE Geosystems and Quaise, to deepen its existing geothermal experience and evaluate new commercial business models. Nabors is leveraging its global footprint, extensive knowledge of subsurface conditions and expertise in well construction to advance and accelerate geothermal technologies and projects globally.
Finally, Nabors continues to assess a significant number of energy transition opportunities for its portfolio. Notably, on 16 November, Nabors Energy Transition Corp (NETC), a recently formed special purpose acquisition company and an affiliate of Nabors, raised $276 million in an initial public offering and is trading on the New York Stock Exchange under the symbol “NETC.U.”
NETC was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. It intends to pursue an initial business combination target in the energy transition space.
“Our people and technologies have enabled the energy industry to achieve ambitious goals and deliver substantial operational efficiency gains. Now, as society faces its most daunting challenges – simultaneously addressing climate change, decarbonizing the economy and accessing responsibly, more affordable, reliable energy than ever before – we’re doing our part and innovating the future of energy,” said Anthony G. Petrello, Nabors Chairman, CEO and President.
“As we enhance our business portfolio by reaching for new energy transition opportunities, we remain firmly committed to responsible capital discipline and debt reduction. Our continual focus on drilling automation and digitalization is fully aligned with the objectives of improving today’s energy landscape as well as responding to the world’s increasing sustainability concerns. We anticipate continued growth and innovation in our current business. At the same time, we view the current expansion to our overall strategy as an exciting opportunity to generate compelling incremental returns for Nabors,” said William Restrepo, Nabors CFO.
