Reducing the Environmental Footprint of

Unconventional Reservoir Development

Jean-François Poupeau

Executive Vice President

Corporate Development & Communication The Aspen Institute Forum on Global Energy, Economy and Security

June 10, 2015

This presentation contains “forward-looking statements” within the meaning of the federal

securities laws, which include any statements that are not historical facts, such as our financial

targets and other forecasts or expectations regarding business outlook; growth for Schlumberger

as a whole and for each of its segments (and for specified products or geographic areas within

each segment); oil and natural gas demand and production growth; oil and natural gas prices;

improvements in operating procedures and technology; capital expenditures by Schlumberger and

the oil and gas industry; the business strategies of Schlumberger’s customers; demand for our

integrated services; the success of Schlumberger’s joint ventures and alliances and its integration

of acquired companies; introduction of new technologies; future global economic conditions; and

future results of operations. These statements are subject to risks and uncertainties, including, but

not limited to, global economic conditions; changes in exploration and production spending by

Schlumberger’s customers and changes in the level of oil and natural gas exploration and

development; demand for our integrated services and new technologies; Schlumberger’s future

cash flows; general economic, political and business conditions in key regions of the world,

including in Russia and the Ukraine; pricing erosion; weather and seasonal factors; operational

delays; production declines; inability to acquire target companies or integrate new acquisitions;

changes in government regulations and regulatory requirements, including those related to

offshore oil and gas exploration, radioactive sources, explosives, chemicals, hydraulic fracturing

services and climate-related initiatives; the inability of technology to meet new challenges in

exploration; and other risks and uncertainties detailed in our Forms 10-K, 10-Q, and 8-K filed with

or furnished to the Securities and Exchange Commission. If one or more of these or other risks or

uncertainties materialize (or the consequences of such a development changes), or should

underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected

in our forward-looking statements. The forward-looking statements speak only as of the date of

this presentation, and Schlumberger disclaims any intention or obligation to update publicly or

revise such statements, whether as a result of new information, future events or otherwise.

2

11.4 10.9

11.7

US Russia Saudi

Production MMbpd

Wells Drilled # wells and sidetracks

Footage Drilled Million ft.

399

8,688

35,699

Saudi US Russia

3

83

297

US Saudi Russia

Global Drilling Intensity Will Increase

Source: IEA, EIA, Spears, SLB Analysis 3

2014 Liquids Related Activity

Shale Interest

International Shale Tests

Source: Schlumberger

Emerging Unconventional Plays

4

5

High Spec Rigs Pad Drilling Zipper Fracturing Engineered Completions

1,560

~32,000

~400,000 ~2,000,000

RIGS WELLS STAGES CLUSTERS

2013 North America average Horizontal Rig Count

Source: Schlumberger Analysis, RigData, June Warren-Nickle's

Evolution of North America Basin Development

Vertical, Perforated Well with

Single Hydraulic Fracture Vertical, Perforated Well

200 Ft High x 6” Wellbore 200 Ft High x (1) 200 Ft Frac with 2 Wings Each

315 Sq Ft 160,000 Sq Ft

Horizontal, Perforated Well with 15 Hydraulic Fractures

200 Ft High x 6” Wellbore x (15) 200 Ft Frac with 2 Wings Each

2,400,000 Sq Ft

Why Hydraulic Fracturing?

50 40 30 20 10 0

kilometers

Core Tier 1 Tier 2

Barnett Shale

Transportation

60%

Storage

22%

Supply

10%

Treatment

2%

Disposal

6%

Direct Annual Use for Hydraulic

Fracturing:

Over 90 Billion Gallons in United States

Average of 2.4 Million Gallons per Well

Total Associated Costs over $6.4B

Best Practices Include:

Recycling of Flowback

Alternate Sources of Water

How About the Water…

0%

20%

40%

60%

80%

100%

0%

3%

6%

9%

12%

15%

Cum

ulat

ive

Pro

duct

ion

Con

trib

utio

n

% P

rodu

ctio

n fr

om P

erf C

lust

er

Perf Cluster Heel Toe

0%

50%

100%

0%

5%

10%

15%

20%

25%

30%

Cum

ulat

ive

Pro

duct

ion

Con

trib

utio

n

% P

rodu

ctio

n fr

om P

erf C

lust

er

Perf Cluster Heel Toe

0%

50%

100%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Cum

ulat

ive

Pro

duct

ion

Con

trib

utio

n

% P

rodu

ctio

n fr

om P

erf C

lust

er

Perf Cluster Heel

Toe

-20%

0%

20%

40%

60%

80%

100%

-5%

0%

5%

10%

15%

20%

25%

% P

rodu

ctio

n fr

om P

erf C

lust

er

Perf Cluster Heel Toe

Cum

ulat

ive

Pro

duct

ion

Con

trib

utio

n

Production Contribution… Less than Optimal

10

Decent Distribution:

6% of Cases Dominant Clusters:

29% of Cases

Crossflow:

6% of Cases

Zero Production from at

least 10% of Clusters:

58% of Cases

Novel Completions Techniques

11

Improvement of well performance

Typical production increase of 20%

Novel Completions Techniques

Significant reduction in logistics, safety

risks and environmental footprint

Typical water consumption reduction of

25%

Typical proppant consumption reduction

of 40%

11:39:43 11:46:23 11:53:03 11:59:43

0

120

240

360

480

600

San

d C

once

ntra

tion,

kg

adde

d/m

3

Fracturing

Location

Disposal

Well

Fracturing

Location Disposal

Well

Fracturing

Location

Disposal

Well

Water Sourcing for Hydraulic Fracturing P

ast

Idea

l P

rese

nt

Produced

Water

Fresh Water

Recycled

Water

Recycled

Water

Fresh Water

Fresh Water

Cation Sample 1

Sodium 80423

Calcium 18938

Potassium 6800

Magnesium 889

Iron 82.29

Boron 364

pH 5.68

SG 1.187

TDS 275000

Water Sourcing for Hydraulic Fracturing

0

200

400

600

800

1000

0

50

100

150

200

250

300

0:00 1:00 2:00

Vis

cosi

ty [c

P]

BH

ST

[deg

F] /

She

ar R

ate

[1/s

]

Elapsed Time [hh:mm]

Green Chemistry

Green Chemistry

Traditional Fracturing Additive Portfolio

Traditional Fracturing Additive Portfolio

Stimulation Fluids

Engineering

Traditional Fracturing Additive Portfolio

Incr

ease

d C

ompo

und

Res

tric

tions

Time

Green Chemistry

Traditional Fracturing Additive Portfolio

Stimulation Fluids

Engineering

Green Chemistry

Stimulation Fluids

Engineering

Development of Modern Chemistries

The Schlumberger Definition

Priority Pollutants & SDWA (US EPA): 231 Constituents

Known Carcinogens (REACH): 1018 Constituents

Known Mutigens (REACH): 423 Constituents

Known Reprotoxins (REACH): 217 Constituents

Nonylphnol & Alkylphenol Ethoxylates: 31 Constituents

Suspected Carcinogens (REACH): 186 Constituents

Suspected Mutigens (REACH): 195 Constituents

Suspected Reprotoxins (REACH): 129 Constituents

91.6%

8.4% Meets the Criteria

Client: EXAMPLE CLIENTWell: EXAMPLE WELLBasin / Field: EXAMPLE FIELDCountry: EXAMPLE COUNTRYState: EXAMPLE STATECase: Prop FracDisclosure Type: PrejobWell Completed: -Date Prepared:Report ID: RPT-XXXXX

*

Potassium hydroxideGlycerol

67-48-17772-98-77789-38-01332-77-0

31726-34-865997-18-455566-30-81310-58-3

56-81-5

Sucrose

Dicoco dimethyl quaternary ammonium chloridePropan-2-ol

1310-73-2< 1 %

< 0.1 %< 0.1 %< 0.1 %

< 0.01 %

< 0.01 %< 0.01 %< 0.01 %

Cholinium chlorideSodium thiosulphate

Sodium bromate

Tetrakis(hydroxymethyl)phosphonium sulfate

107-21-1

7631-86-961789-77-3

67-63-0

57-50-1

Calcium magnesium sodium phosphate frit

1/1/2013 12:00 AM

OpenFRAC XL 100,000 GalContains: Water, Activator, Bactericide, Breaker, Buffer, Clay Control, Crosslinker, Gelling Agent, Propping

Agent, Scale Inhibitor, Stabilizing Agent, Surfactant

Fluid Description(s)

< 0.001 %

< 1 %

< 0.0001 %

Mass Fraction

The total volume listed in the tables above represents the summation of water and additives. Water is supplied by client.

~ 80 %Water (Including Mix Water Supplied by Client)*14808-60-7 Crystalline silica ~ 19 %

CAS Number Chemical Name-

9012-54-8

Potassium boratePolyethylene glycol monohexyl ether

< 0.01 %

< 1 %

< 0.0001 %

© Schlumberger 2013. Used by EXAMPLE CLIENT by permission.

Mix water is supplied by the client. Schlumberger has performed no analysis of the water and cannot provide a breakdown of components that may have been added to the water by

third-parties.

100%

9000-30-0

< 0.001 %< 0.0001 %

Guar gumSodium hydroxide

Hemicellulase enzyme

Ethane-1,2-diol

Non-crystalline silica

< 0.0001 %

List of Schlumberger Systems Pumped, including

system volumes and additive descriptions for

services provided during treatment

List of chemical constituents with CAS numbers and

mass fractions. Adds to 100% of known constituents

Transparency is a Must…

To Gain Public Trust…

… and to Allow Well Operators

to Prioritize Appropriate

Chemistries

System-Style Disclosure

Includes CAS Registry Numbers

Process Widely Accepted:

Frac Focus (USA)

Frac Focus (Canada)

IOGP’s Voluntary Disclosure Process