Good morning, everyone. On behalf of the entire team at SLB, I would like to thank you for being here with us today. We have been looking forward to this event for many months, and we are excited finally to be here. Today's event comes at a critical juncture, both for our company and for our industry. For us, it is the opportunity to redefine who we are. We always had a commitment to address the most difficult challenges in our industry and to continue pushing the limits of innovation. First, to maintain that legacy of leadership and growth, we need to transform. We need to evolve. We need to go further. This is why last week we have unveiled our new identity, SLB. It represents our role as a global technology company focused on driving energy innovation for a balanced planet.
It is truly a differentiator in our industry. From the curve of our new logo to the boldness of our bright blue color, our new identity symbolizes SLB's commitments to moving further, faster in facilitating the world's energy needs today and forging the road ahead for the energy transition. The world is facing its greatest balancing act. How to provide reliable, accessible, affordable energy while rapidly decarbonizing for a sustainable future. It's a bold challenge. These global dynamics require bold new technology and ideas, digital transformation, and a deep commitment to sustainability. It requires addressing growing energy demand and decarbonizing oil and gas. It requires creating and scaling the New Energy systems of tomorrow. This perfectly aligns with SLB's strengths, scale, and differentiated capabilities. That is the story you hear today. We as an industry need to go further. We, SLB, are the ones who can.
Our company has the required strategy, competitive advantage, and exceptional performance attributes to deliver energy innovation, lower carbon, and higher value, our theme for this year's Energy Investors Conference. These are the drivers that our industry must be focused on to meet this balancing act, to answer the challenge of accessibility, affordability, and sustainability. Now let's start a look back at the last three years. Our current position and performance are the results of a long history of market and technology leadership. More recently, the successful execution of our performance strategy. We launched this returns-focused strategy back in 2019. It was based on a combination of opportunities in the global energy industry, the evolving priorities of our customers, and the need to build long-term resilience. We centered the strategy on strengthening our Core business, expanding our go-to-market approach, and developing new horizons of growth.
We strengthen the core by high-grading our portfolio, exiting margin-dilutive, commoditized, and capital-intensive business and projects. We executed the largest restructuring in the company's history to become more agile, leaner, and better aligned with customers' workflow. We enhanced our go-to-market approach to a new basin organization and the launch of our fit- for-b asin and technology access initiatives. This addressed the rapid evolution of our industry into more regional markets, each with their own distinct resource plays and economics. We are now closer to our customer than ever before. We have a great platform to further differentiate our offering, and we can better capitalize on the market recovery. To build long-term resilience for the company, we invested in long-term growth opportunity in gas, offshore, digitalization, and decarbonization. We have gained a stronger footing in gas and offshore development project globally through portfolio actions.
We developed our industry-leading digital platform, and we launched our New Energy business to develop lower carbon and carbon neutral technology beyond oil and gas. We did all of this despite the headwinds that surfaced through the COVID pandemic, supply chain disruption, and inflationary pressure. We have delivered consistent earnings growth, margin expansion, and significant cash flow generation. I'm proud to say that we met all of the financial target we set out to achieve three years ago. We restored North America to double-digit operating margins. We exceeded our division targets, and we will generate double-digit ROCE this year. We went beyond. We committed to net zero emissions by 2050, including Scope 3, using a science-based approach to create our baseline and targets. As a consequence, we achieved peer-leading ESG ratings, and we continued that performance.
This year's third quarter results were another milestone in our consistent financial performance, with operating margin significantly exceeding pre-pandemic level despite more than 20% lower rig activity. We promised and we delivered. Today, we are a transformed, returns-focused, and more resilient company with three engines of growth across our Core, Digital, and New Energy business. Our new evolved brand reflects who we are and, more importantly, where we are going. Quite simply, we believe the best is still to come. I will show you that today. Let's talk about the macro environment. We believe in a balanced transition for the planet. While the world accelerates the transition of the energy ecosystem to lower carbon future, the recent energy crisis has led policymakers and stakeholders across the world to realize that oil and gas investment remains absolutely essential to the fabric of our society.
This realization is prompting governments and our industry to reassess the long-term strategies for oil and gas to address vulnerabilities and redundancy in sources of supply and to create a more balanced transition, one that delivers energy security, decarbonization, and sustainable development. As a result, the energy industry at large and the oil and gas industry, in particular, will undergo a significant renaissance for many years to come. This strong investment outlook in both the oil and gas sector and in low or zero carbon energy systems is the foundation of our market assumptions and the broad opportunities we are pursuing at SLB. It is why we are so strongly positioned. As you know, the oil and gas sector is undergoing a convergence of strong market fundamentals, capital discipline, and a quest for energy security.
We are in the early stages of a very distinctive growth cycle characterized by supply-led investment decisions. The fundamentals are aligned with our Core business as investment is increasingly pivoting to international basins, both in oil and in gas resource plays. This activity uptake includes a strong offshore resurgence and a significant commitment to expand capacity in the Middle East. Both represent long-cycle investments spanning multiple years, and they represent a significant baseload of activity that will outlast near-term demand volatility. The offshore outlook, combining shallow and deep water, will rebound to activity levels far exceeding pre-pandemic levels. At the same time, the Middle East investment outlook over the next few years will result in a new record in upstream spend for that region. Additionally, the pledge for capital discipline combined with the stretched capacity in the service industry will continue to support a positive pricing environment.
Considering these market dynamics and absence of major market disruption, we maintain the view that upstream spending is very resilient and decoupled from near-term demand. We foresee capital investment to continue growing at double-digit CAGR in the upstream oil sector for years ahead. This represents a very favorable backdrop to SLB market positions and will continue to support our ambition for outperformance in this upcycle. This cycle is also driving more investment in digital technologies. The quest for capital efficiency, asset team productivity, and cycle time reduction requires digital transformation in our industry. The pandemic has been actually a catalyst for digital adoption. Our industry is doubling down on cloud computing, data analytics, and digital operation.
This will result in an accretive and fast-growing digital market throughout the decade beyond the current upcycle as the industry harnesses the power of digital technology to step change performance and to drive decarbonization. We are already recognized as the market leader in digital technology, and we are confident our Digital business will greatly benefit from this secular trend. We'll continue to expand our digital market position and deliver higher rates of revenue growth and highly accretive margin results. When looking at our goal to create and scale the New Energy systems of tomorrow and be a technology leader in the energy transition at large, we are creating a transformational market opportunity. It's one with long-term growth that will span many decades into the future. The energy transition is the largest and most significant challenge ever contemplated or attempted in the history of our planet.
The size of the opportunity is immense for SLB. The rate of market growth is very significant. We are building a broad, diverse portfolio across New Energy sectors selected for their materiality and adjacency to our existing market strengths, and where we can offer technology differentiation. Our ambition is to access a total addressable market exceeding $700 billion by the end of next decade, more than doubling our current total addressable market. In summary, this combination of macro trends is once in a generation, and we are positioned to take advantage of them with agility and speed. Now, looking beyond the cycle and our strategy is pivoting for the future and creating the path of success for each of our engines of growth across multiple horizons. It will create a sustainable and balanced future for energy ecosystem through innovation.
Innovation is the fuel to each of these engines of growth for the success today and tomorrow. You will hear about our technology innovation journey in the next session with Demos. We are determined to fully seize the current upcycle for the Core, leveraging our global reach, our technology differentiation, and our customer intimacy. We are also determined to bring a new level of innovation to the industry as we drive decarbonization and digitalization, and we will pursue strategic portfolio moves that support the focus. We are prepared to scale with agility our digital platform strategy across our upstream market and investing for its expansion beyond. Beginning with carbon management and expanding into energy ecosystem with a bold ambition at the end of this decade.
In addition, we are seeding our investment into selected domains in clean energy to innovate at scale and are set to grow a diverse portfolio that can take advantage of different energy transition scenario and time horizons. As you can see, we are setting a clear and purposeful path for the new SLB. As we go through today's program, we'd like to leave you with three main takeaways. First, SLB is positioned for significant growth. We have built an unmatched, diverse portfolio that will drive multiple paths of growth over multiple time horizons. Building on the market assumption described earlier and taking 2021 as a baseline, our goal is for our revenue to grow at a CAGR exceeding 15% through 2025.
In our Core oil and gas business, we are set to benefit from these upcycle dynamics that are described for years ahead, including strong pricing tailwinds. As the market leader, we have an advantage that allows us to outperform in this environment given our technology differentiation, integration capability, international strength, and offshore breadth. As a result, our Core is poised to continue its impressive growth journey through 2025 and beyond, as this cycle may well extend beyond three years. We'll continue to drive performance and innovate our resilience for the long term. Abdellah will share more on how we are prepared to seize these favorable market conditions during this session this morning. You will come away with a better understanding on how we plan to extend our lead and further our margin expansion and cash generation potential.
In Digital, market trends and our industry leadership are uniquely aligned to support our goal to double our revenue by 2025 from 2021 while maintaining highly accretive margins and cash generation. This success will extend well beyond, as we benefit from the long tail of customer adoption of our platform. As you will see in Rajeev's presentation later today, we are extremely proud that SLB has established a leading position in software over decades, which has enabled us to anticipate and drive the digital trends taking hold in our industry. Our recent Digital Forum was recognized as a transformational moment by our customers and partners. SLB is clearly seen as the industry leader in creating digital as an accelerator for operational performance and lower carbon pathways.
In New Energy, we will make rapid advance over the next several years, mature our technology, and make new investments that position our business to deliver $3 billion of revenue by the end of this decade. Through our efforts to invest into a diverse portfolio of clean energy solution and participate at scale to decarbonize multiple industry sectors will pave the way for New Energy to ultimately become our biggest division. Later today, Gavin will provide you with greater insight into the progress we have made since the launch of New Energy and the roadmap ahead. The second takeaway is that SLB has the required combination of attributes that allows us to outperform, and it's a combination that is distinctly ours. When you combine technology innovation with our unmatched integration capabilities, it leads to customer performance. This supports pricing premiums.
When you combine our global scale with digital enablement, it translates into operational efficiency. This results in advantaged cost to serve and higher margin. When you combine local talents and regional content with fit- for- basin, custom-designed solutions, it creates customer loyalty. This drives a stronger market position and competitive advantage. These attributes are cutting across our three engines of growth and are exemplified in every basin in our geographical structure. You will hear more about this later today with Khaled. Why these attributes matter? Because they are what drives our market success, our industry leadership, and ultimately our earnings power and financial performance. This is what allows us to translate market conditions into margin expansion, significant earnings growth, and free cash flow over the next few years.
Which leads me to the third and final takeaway today, one that is reflected in our new brand, our purpose, and our ambitions. We are focused on creating higher value and returns for our people, our customers, our communities, and for you, our investors. For our current and future employees, SLB is an attractive value, career value proposition because our talent can take part in one of the most diverse, most relevant, and attractive opportunities for professional development in our industry. One that has a higher purpose for driving energy innovation with lower carbon. You'll hear from Carmen how the SLB people will shape the next chapter of our company. For our customers, SLB is integral to their success because we create significant value for them. Delivering outstanding results for our customer is the foundation upon which we have built our reputation.
It's the foundation upon which we'll build our future success. Performance matters today, and will matter more tomorrow. Our differentiation will come from lower carbon outcomes. We are ready for both. For the communities in which we work all over the world and for our planet, we are focused on deploying our capabilities to solve the dual energy challenge, providing more sustainable energy that is reliable, accessible, and affordable for a balanced planet. This is integral to our new brand and our new strategy. You'll hear from Katharina how our strategy and sustainability are intertwined and the progress we have already made. For our shareholders, we remain committed to a capital allocation strategy that focuses on shareholder returns. We are set to deliver leading ESG performance and attractive capital return built upon a clear path of continued growth, improved earnings, and resilience across cycles.
To this end, today, we'll announce an enhanced capital allocation framework that will demonstrate our ability to balance attractive returns, strengths of balance sheet, and discipline capital investment. Stephane will go into more detail during his remarks and roll out our financial targets through 2025. To close, we expect the next few years to be some of the most exciting times in our industry. It is a unique challenge, but we are a unique company. Unique in the way we are innovating in our engines of growth, Core, Digital, New Energy, while creating a sustainable future for the energy industry. Unique in our position as a performance partner of choice in our industry and beyond, and how we are delivering upon our returns-focused strategy and outperforming expectations. Unique in our role as a global technology company that is driving energy innovation at a time when it's desperately needed.
For a balanced planet is more than our new tagline. It is a belief in what we have been called to do. By the end of the day, you will see the roadmap for how we are going to set out to get it done. Ladies and gentlemen, I want to thank you all again for spending the time with us today.
Good morning, everybody. Olivier's opening statements touched on the central role technology innovation has in SLB, and how it extends our leadership across all of our businesses. Our outlook and perspective on the current cycle is absolutely ripe for technology differentiation to bring both higher revenue and returns. Now, why do I say that? I say that because the challenges faced by our customers are now more acute than ever. They operate in an environment that demands lower climate impact while being more efficient at delivering energy to the world. At SLB, we're pioneers with a passion for excellence in science, engineering, and digital technology innovation. It defines who we are. Inventing and delivering disruptive technology has been at the heart of this company since our beginning. More than 50 years ago, we were the first to bring a computer to a well site, revolutionizing wireline logging.
Beyond the limits of our own planet, we provided sensors to NASA for their space programs, developed by SLB for the harsh subsurface environments. Let me bring you to more relevant and recent times. We've always been the world leaders in subsurface measurement, and more importantly, how to use them to understand the complexity of reservoirs. In Well Construction, we've continuously broken records. Our rotary steerable drilling systems, now the market leader for more than 20 years, are delivering even higher performance with automation and artificial intelligence. In production, advances in subsea boosting systems, subsea carbon dioxide separation, and intelligent well completions deliver better ways to maximize field recovery, lowering costs and reducing emissions. These are just a few examples of the relentless commitment we've made to solve the challenges in our industry.
Now, today, grown from that history of innovation, we're leading advances in digital and decarbonization in oil and gas and the wider energy and industrial markets. We're completely committed to bold technology development to affirm our position as a global technology company. Now, I'm going to tell you about how new technology innovation is essential to our growth and to our customers' success. Most importantly, I want to leave you all with a very clear appreciation of the deep scientific, engineering, and digital strengths of SLB, how technology innovation is absolutely fundamental to our financial success and our identity. To kick off with a proof point, currently, more than 20% of our annual revenue is derived from new technology. SLB is leading as a provider of technology in our industry and the partner of choice.
That's not only because of our proven ability to invent disruptive technology, but it's because of our ability to deploy them reliably across the globe. Now, that combination is rare and valuable. It unlocks higher value for our customers who look for our Core oil and gas expertise in an environment where higher efficiency and reliability, as well as lower carbon, are increasingly essential. How does a company achieve such a valuable balance? Comes from being connected for decades to ecosystems that bring access to top talent and new ideas. We've established ourselves in places with the highest concentrations of innovation and scientific talent across the world. The California Bay Area; Cambridge, Massachusetts; and Cambridge, U.K., just to name a few. Our product development and manufacturing centers are in industrially powerful hubs in Europe, Asia, North and South America. It doesn't stop with R&D.
In manufacturing, our programs to modernize have made us agile, efficient, and highly specialized in capabilities that make the most business impact. As a result, we've repeatedly shown that we respond quickly to shifts in the market while remaining at the leading edge of industrial development. The expertise, efficiency, and agility of our multi-billion-dollar manufacturing groups is itself a major competitive advantage. It delivers value to our Core businesses, and it sets us apart on the journey to accelerate our New Energy business ambitions. With all of this, we truly have a unique ability to scale innovation, and that translates into market leadership and clear financial returns. Let me say it again, more than 20% of our annual revenue is from new technology, and the outlook is for that to grow.
Now, to extend that leadership, I'm going to talk about three strategic business directions that are all enabled by technology. They're fit-for-basin, digital, and decarbonization. All three are gaining significant momentum with our customers in this cycle. Let's start with fit-for-basin. This describes when we take a piece of technology, innovate, and accelerate our growth through adaptation to the needs of a specific market. As supply chains and technical challenges become more fragmented and localized, it's become a highly effective response, delivering growth in key markets. It directly addresses specific challenges that are not sufficiently solved by our global technology portfolio. That might be either because of a technical specification issue or a commercial challenge. It's also a benefit derived from our successful platform approach to product development, and the solutions incorporate hardware and digital, and very often require enhanced customer engagements.
They're an opportunity to accelerate development, and as a result, energy access for the customer. Let's not forget, a path to faster returns on our R&D investment. Let me illustrate by sharing an example from North America. In this market, the established method of determining flow rates and fluid types from wells is to install substantial capital equipment. Tanks, pipework, separators that might be a similar size to this room. That's replaced by SLB's state-of-the-art multiphase flow meter, not much bigger than the size of a suitcase. The underlying technology showed potential for this market, but required new data interpretation and domain knowledge specific to the market. We developed a plug-and-play solution using modern data science rapidly adapted to those target wells. Well, what does all of that achieve?
Well, it means that, SLB has more than quadrupled unit sales, saving the customer substantial CapEx, reducing the operating footprint while applying industry-leading measurement technologies in this high-volume market. We expect it to continue to grow. We have more than 100 projects under development using this fit-for-basin approach. Nearly all of them are targeting challenges and opportunities in the offshore basins, North America, and the Middle East. Today, we lead in this kind of technology adaptation enabled by our product platform approach, providing enhanced performance for customers at a local level. Now, let's change direction and look at digital, which represents a very powerful toolkit for the industry to deliver higher value in terms of performance and decarbonization. Digital is a key differentiator for SLB, and it's been that way for more than 20 years.
We've been recognized as the leader in subsurface modeling, simulation, and other highly technical applications used by customers all over the world. From that foundation, we've systematically grown our capabilities across the key pillars of digital, in data, cloud-enabled compute, IoT, cybersecurity, automation, and advanced control, all of which allows our customers to better plan, simulate, optimize, and gain insights into their own activities. Let's think about digital in two broad categories. The first one, digital platforms and applications, which Rajeev Sonthalia will talk about in more detail later this morning, and second, digital enablement and enhancement of physical assets and operations. That category spans a very broad spectrum of capabilities from artificial intelligence-enhanced instrumentation of equipment, which helps optimize performance and minimize lifecycle cost to highly automated hardware platforms such as our Well Construction Neuro autonomous solutions.
They deliver breakthrough results repeatedly and reliably, even in the most complex environments. On to the third priority, which is decarbonization. SLB is leading the way in addressing our customers' ever-growing need for solutions that explicitly decarbonize their operations and deliver carbon neutral projects. Our customers are making commitments to reduce their greenhouse gas emissions, and the measurement of progress is absolutely key. At SLB, our history of developing, delivering, and interpreting trustworthy measurements of the highest technical integrity is very well-recognized. All of those attributes are critical as customers address the challenge to decarbonize their operations in the most efficient way. In our Core, the goal to decarbonize oil and gas operations creates a brand-new set of technology specifications for product development and innovation. At SLB, we describe those new products and services collectively as Transition Technologies.
That's a portfolio currently comprising 38 products and services built on a robust technical methodology to quantify and reduce emissions. They address methane emissions, reduce or eliminate flaring, minimize Well Construction CO2 footprint, and present solutions for the electrification of infrastructure and full field development. Now, in all the time I've been speaking, you'll have seen this image, and you might be wondering what it is. This is Ora, and it's one of our most recent technology platforms integrating digitally enabled hardware and artificial intelligence enhanced digital workflows. Well, what does it do? Ora makes measurements of fluid properties and their movement in the reservoir, and it can replace the traditional methods of well- testing, which typically require flaring. What does that mean and why is it important? It means that today we have technical solutions that allow our customers to avoid the necessity to flare during well tests.
There's more to Ora. Today, it's applied not only for oil and gas developments, but it's used to characterize saline aquifers and identify the best candidates for carbon dioxide sequestration. That's an excellent example of how our domain knowledge in oil and gas applications is being redirected to solve a major challenge of the future. Ora is one of our 38 Transition Technologies facilitating our customers' journey to net zero, delivered through world-class technology innovation. In addition to Transition Technologies like Ora, this year, we created an End-to-end Emission Solutions platform which offers innovative methods for measuring, monitoring, reporting, and ultimately eliminating methane and routine flare emissions. Why is this important and valuable? Let me put it into context.
Methane has between 8x and 20x the warming impact in the atmosphere as CO2, and it's responsible for 60% of the 5 gigatons of CO2 equivalent per year that are associated with oil and gas operators' activities. Oil and gas operators have made that topic their first priority. Well, what does it achieve? Addressing it would have an equivalent impact to removing almost all of the light passenger vehicles with internal combustion engines from our planet. SLB is unique in that we offer the full range of measurement expertise, a digital platform, and insights needed to address emissions reductions globally. We launched that business in March this year, and we're already engaged in customer projects in Asia, the Middle East, Europe, and the United States, deploying our portfolio of capabilities, including consulting, optimized surveillance planning, measurements, and interpretation via a secure digital platform.
Along with our work to decarbonize the activities of our existing customers, decarbonization technology is also a leading area that is taking SLB into new markets that extend beyond oil and gas. We're now seeing customers in adjacent industries such as steel and cement processing, who need a way to offset and reduce their carbon emissions. SLB New Energy presents a compelling opportunity for us because we have the technical capabilities, resources, and the infrastructure needed to deliver projects that have a global impact. You're gonna hear a lot more about New Energy and the technologies associated with it from Gavin Rennick later today. In closing, our technology is embedded throughout our entire organization, and it supports our three growth engines. Through this cycle and through the longer term trends to deliver energy security at lower carbon, new technology plays a central role.
Extending our technology leadership in this environment will deliver growth and returns greater than we've seen in the past. Our innovation capabilities position us ideally for the future, underpinned by a strong Core, a leading digital platform, and growing technology portfolio that expands into New Energy. SLB is positioned to allow our customers to benefit from our deep scientific knowledge, technology leadership, and industrialization track record in ways that are increasingly efficient, have lower emissions, and are digitally enabled. After 32 years, I cannot remember a more exciting time for technology to change our lives and the way we access energy, and I'm extremely proud to lead the outstanding technology team at SLB. Today, not only are we excited about the future, SLB is creating it.
Core. The word core is a very powerful word with a powerful definition. It's a part of something that is central to its existence and character. We are central to SLB, and SLB is central to its customers.
Good morning, everyone. It's great to be here with you today. I am Abdellah Merad, and I lead our Core Services and Equipment business, a role I have held since March of this year. I have been at SLB for 26 years and have led a variety of our Core operations across our global footprint. Today, I'm going to touch on a number of topics and examples. By the end of our conversations, there are three takeaways you need to remember. First, we are positioned to seize this growth cycle with our unmatched market growth, differentiated performance, and unique integration capabilities. Second, we are innovating for resilience and sustainability to deliver today and tomorrow on a higher value, lower carbon future. And third, our Core is well-positioned to outperform the market and deliver further margin expansion through the cycle and beyond.
Let me begin with why this cycle is fit for our Core. I mean, as you heard from Olivier, the current oil and gas growth cycle has many factors that are aligned with our strength. Energy security and regionalization of demand is making this current supply crisis more acute. There is a strong need for investment in the oil and gas supply chain to offset decline rates. We build inventories and restore spare capacity buffers. Significant activity growth is occurring in short and long cycle projects in North America and internationally, both onshore and offshore, which is resulting in a very favorable mix for SLB. This cycle will be characterized by the imperative of performance, digital, and decarbonization. The industry is embracing these elements as an enabler of higher performance, value creation, and as a part of the industry's path to decarbonize operations.
Along with these dynamics, we will see improved pricing in the service sector as we enter a new era of performance and capital disciplines across operators and service providers. Contrary to the previous cycle of 2016-2019, where North America dominated the growth, the Middle East were only in low single- digits at best, and in fact, the offshore markets contracted. For this cycle, we see broad growth across multiple regions. With the sharp uptick in North American activity behind us, Middle East will be the fastest growing region going forward, followed by offshore. This fits very well to our strength. Thanks to the breadth of our portfolio and depth of our technology leadership across multiple drilling, completion, and production service lines, and our unique integration capabilities. Our unmatched market breadth is more than ever a competitive advantage.
There is resurgence of offshore as operators concentrate on their most advantaged bases. Current industry Final Investment Decision, or FID, estimates a nearly 50% increase in offshore investment over the next four years compared to the period from 2016 through 2019. I mean, in my discussion with our key offshore customers, I'm already hearing and seeing the commitment in the pipeline of pre-FIDs. Our presence in offshore is significant. With a leading footprint across global offshore rigs and is the most far-reaching geographically. Everywhere there is an offshore operation, SLB is there. The resurgence of offshore has important implication for us. Offshore operation currently represent an average of 5x the revenue potential of onshore from the combination of higher market penetration, broader service and product offering, and higher technology intensity.
There is also commitment in the Middle East to supply the production growth and position for the long term, with several large national oil companies executing on their announcement to deliver additional capacity and increasing activity accordingly. The Middle East is targeting at least 4 MMbpd increase in oil production capacity by 2030. Additionally, the Middle East is expected to contribute over 35% of new gas supply by the same timeframe. I mean, this long-term outlook guides activity levels in the region more so than current OPEC quotas. This is resulting in the largest investment the region has ever seen. We have the largest market exposure in the Middle East by far. The long-term outlook sets up very nicely for us.
Our international revenue in the third quarter of this year exceeded revenue from the third quarter of 2019, and that's with rig count still 25% lower. This highlights the significant gains we have made winning work and highlights our growth potential as rigs continue to mobilize internationally, particularly offshore and in the Middle East. Finally, there is a new playbook in North America, which is focused on returns versus growth. This investment discipline is widespread in both the operators and service companies, with steady growth through the period. In North America, we are focused and transformed. We are more aligned with our strength, have adapted our go-to-market strategy, are the market leader in the Well Construction value chain, and are leveraging our comprehensive portfolio of production systems and services.
I mean, the impact of this business is already clearly visible on our bottom line, with our land business fueling our North American margins that have more than tripled this year compared to the same period in 2019. This geographical positioning gives a far more balanced exposure across the cycle. The growth and activity attributes are in our favor. With offshore and Middle East activity in the early stages of this growth cycle, we are very confident that we are well set up to outperform the market. Now, I would like to move this discussion into our technology advantage.
I mean, already having the most comprehensive well-centric technology portfolio, we continue to strengthen our offering from reservoir to production facility, broadening our reach into production and midstream, giving us a balanced portfolio of short and long cycle business, covering both CapEx and OpEx spends of our customers, supporting our long-term resilience in the Core. Over the past three years, which included a significant COVID-related downturn, we continued our R&D investments. We have introduced more than 150 new technologies across the portfolio and are consistently recognized for innovation impact with more than 30 industry awards over the past three years. I mean, our ability to continuously drive new levels of efficiency and performance is driving customer loyalty and ultimately our pricing premium. Operational performance matters greatly for our customers.
I mean, in all my conversation, from large international companies and national companies to smaller independents and privates, our performance sets us apart from our competitors. Now, performance has always mattered, but in today's inflationary setting, differentiated performance provides cost certainty for our customers and is why it's so highly valued. Safety, reliability, and efficiency are the drivers of our differentiated performance and are core to who we are as a company. I mean, don't take my word for it, though. I mean, these are the results of Kimberlite, an organization that surveys around 15,000 customers across the globe that gives the best independent view of customer perception. I mean, we are clearly there.
I speak for the entire SLB Core team when I say we take pride in setting the benchmark in product and sales delivery performance, and we are being paid more for the value we bring. In fact, thanks to our unmatched breadth and performance, we are seeing customers increasingly choose SLB because of our leading technical integration capabilities across the entire value chain, from subsurface to midstream facilities. I mean, today, we are the only company in our space capable of undertaking large, complex, and fully integrated projects that cover subsurface development, subsea infrastructure, and midstream processing. In recent years, we have enhanced our delivery capabilities and realized significant successes across our global integrated service offering. I mean, we believe that outsourcing from our customers base will see integration accelerate as a secular trend as the need to fast-track production and driving certainty is becoming a central theme.
I mean, this is more acute than ever with global gas supplies in a structural deficit. I mean, in this environment, there is nothing more critical than accelerating gas to market. Let me now highlight a few examples of how our integration capabilities are driving new levels of performance for our customers in key gas fields. I mean, the North Field of Qatar, we are reducing well delivery time with our ability to holistically integrate basin-specific Well Construction technology to cut average well drilling times by several days for Qatarg as. This time saving is globally significant in Qatar's attempt to increase LNG production, and is a clear example of how our focus on our gas technology capabilities is paying off. In the Jafurah field of Saudi Arabia, we are integrating the pumping, quarterbacking, wireline, and fluid delivery system in this unconventional play for Saudi Aramco.
Within three months of startup, our productivity or stage count delivered a 35% improvement. I mean, this new performance benchmark matches that of top quartile stimulation fleets in the U.S. Our ability to consistently outperform is why Aramco has trusted us with this multi-billion-dollar gas development. Finally, in the deepwater Sakarya gas field for TPAO in the Black Sea, offshore Turkey, we are providing end-to-end the complete scope from the reservoir to the production facility with engineering and construction proceeding in parallel. We are significantly reducing average development times to accelerate production of first gas.
I would be happy to expand on many other examples here, but what I want to leave you with is the fact that our breadth of portfolio provides us with a unique ability to integrate and create value across environments, offshore and land, conventional and unconventional, deep water and shallow water, supporting our customers to expand their production capacity. Now that I have summarized why we are the best positioned to deliver today and seize the cycle, I would now like to talk about my second takeaway, which is how we are innovating for resilience and sustainability to deliver tomorrow and fuel our growth beyond the current up cycle. I mean, as you heard from Demos, I mean, fit- for- basin technology, digital enablement, and decarbonization have all gained significant momentum and are setting the path for lower carbon, higher value future for our company and the industry.
Here's why this matter to our business. First, our fit- for- basin strategy has accelerated technology customization for every basin and maximize the value we provide customers on a local level. We continue to receive excellent feedback from our customers on how we are able to solve their basin-specific challenges. After only two years since the program's inception, we will record more than $300 million revenue this year and are projecting it to grow at a 25% CAGR during the 2021-2025 period. I mean, additionally, we'll have more than 100 active fit- for- basin technologies under development next year. Second, we are using our technology to help operators accelerate project cycle time and drill faster, increase production, and maximize the value of their assets, all of which is enabled by the integration of digital in our operation.
Our Digital capabilities, paired with our deep domain knowledge and technical depth, allow us to go much further with how we deliver for our customers and enable us to better deploy resources. Digital is part of everything we do. Digital allows us to effectively scale up our operation with less people and equipment, thereby reducing our cost to serve, further driving our operating leverage. In addition, Digital significantly enhances our value proposition with customers, allowing us to generate new revenue streams. I mean, this ranges from providing contextualized reservoir insights in real time to using the potential of autonomous drilling sequences to ensure every well drilled is better than the last, to deploying knowledge to ensure each piece of production equipment, as well as the overall process, is optimized to maximize production potential.
I mean, to give you just one example, digitizing the Well Construction process, including our autonomous directional drilling technology, is transformative for the industry. I mean, this revolution, enabled by digital sensing and cloud-based processing, will be a significant driver of margin expansion for the coming years. For the Well Construction division, it is projected to deliver at least 150 basis points margin gain in the coming years. Third, with our expanding portfolio of Transition Technologies, we are delivering on the industry's mandate to decarbonize. We were the first in the industry to create a portfolio of offerings dedicated to decarbonization. We are very proud to develop and commercialize new technology that is focused on areas where we can make the largest impact today, including helping customers more effectively reduce emissions and quantify the value of those reductions.
I mean, it is important to highlight that our Transition Technology portfolio was introduced only a year ago at the same time as our bold Scope 3 reduction commitment. It is already creating value for our customers and our shareholders, and is only set to grow further. We estimate that it will reach greater than $1 billion by 2023. Our ability to maintain our leadership positions, build on our strength, execute with intention, and drive new levels of performance is all possible because our three divisions are aligned with our customers' workflows and priorities. Reservoir Performance, Well Construction, and Production Systems. Each division is leading in their respective sector. Each is distinct in value proposition. Each is impacting customer performance and driving customer loyalty in their domains.
Since there are no better people to talk about this division, let me invite our Core Division Presidents on the stage. Aparna Raman, Jesus Lamas, and Steve Gassen. Three outstanding leaders with more than 20 years experience each in their respective domains, to let them say a few words about their business and share their excitement about their growth prospects. To you, Aparna.
Thank you, Abdellah. I'm Aparna Raman, and I lead the Reservoir Performance division. The Reservoir Performance division is responsible for proving reserves, connecting to the reservoir, and sustaining its performance. We are the roots of SLB. From the inception of our company and the first electrical logs run by Schlumberger brothers, we have a proud history of pioneering reservoir evaluation. This continues till today, where we help our customers with their deep domain knowledge to understand the subsurface and de-risk development plans. We evaluated 16 out of 18 major discoveries in 2021 alone, demonstrating that when it matters and certainty is needed, customers choose SLB. Not only are we the industry leader in evaluation, but we also boast the largest and most comprehensive portfolio in intervention services, delivering superior efficiency and enhanced production for our customers.
We have breadth, we have broad exposure from exploration to development and production and beyond, we are there. In the technology showcase later today, you will be able to see and touch Ora, our crown jewel, as well as understand better the differentiation we bring in the production domain. Let me pass it to Jesus.
Thank you, Aparna Raman. My name is Jesus Lamas, President of Well Construction, which I'm proud to say is the largest of the three divisions. We are by far the leading Well Construction services provider in the industry, and offer the most comprehensive suite of products and services supporting our customer drilling workflows. Through innovative technology and disciplined execution, we continue to drill more productive wells faster, bringing tangible value to our customers through performance, and at the same time, bringing value to SLB through pricing premium and margin expansion. For example, in our U.S. operations, we have improved drilling efficiency by over 70% in the last three years from deploying technologies like our rotary steerable systems, enhanced by our digital capabilities. We touch more than 1/3 of the rigs in the U.S., and these numbers continue to rise. Drilling faster reduces carbon emissions per well.
We don't stop there. We also drive lower carbon by innovative chemistry for drilling fluids and cement, as well as intelligent power systems and controls for the drilling rig. We are on a transformational journey in Well Construction, and I look forward to sharing more examples of how we drive superior performance through autonomy in the technology showcase this afternoon. Over to you, Steve.
Thank you, Jesus. My name is Steve Gassen, and I am privileged to lead our Production Systems division, which comprises the most comprehensive production portfolio in the industry. Following the acquisition of Cameron in 2016, which is where my career started, the integration of these long cycle businesses enabled one company for the first time to connect the entire production system from the reservoir to the production facility. Coupling this end-to-end integration with SLB's leading digital capabilities, we are now capable of optimizing the entire production system for our customers. An example of an integrated production system can be seen in the Ormen Lange field, where we provide an integrated completion and production solution that unlocks an additional 30-50 billion cubic meters of natural gas. This development is a real glimpse into the future, and our technology makes it possible.
A fully electrified subsea compression system, powered by onshore hydropower, will enable the continued supply of more than 20% of the United Kingdom's gas needs. Our low power compression technology makes this engineering feat possible. I look forward to sharing how electrification of oil and gas is both achievable and scalable in the technology showcase later today. I will now hand back to Abdellah for the rest of the presentation.
Thank you, Steve. Thank you, Aparna. Thank you, Jesus, for sharing your perspective. I mean, I hope you hear the passion in their voices when they speak of what our technology can do for our customers and how we continue to innovate in Core, oil, and gas. I mean, you'll get a chance to interact and hear more from them in the technology immersion sessions this afternoon. Our capabilities go beyond what any other company can do, and it is very exciting to be at the forefront of solving ever greater and more complex engineering and production challenges. To close, I want to reiterate our confidence in our ability to seize the growth cycle and to continue our Core leadership for the future. I mean, as you have seen, we are unrivaled in market growth, best-in-class performance, and unmatched integration capabilities. We are innovating for resilience and sustainability.
The combination of these allows to deliver financial outperformance and the premium we have earned. If I just look at our performance this year, combining our Reservoir Performance, Well Construction, and Production Systems divisions, our Core revenue has grown 22%. Our pre-tax operating income has increased 50%. Our operating margins have improved by more than 270 basis points when compared to the same period last year. I mean, at the same time, Middle East, offshore markets, and our long cycle businesses are still in the early phases of growth. While our ambitions will be more clearly detailed by Stephane this afternoon, I firmly believe our Core is primed to outperform, and we are confident in our ability to outpace the market growth and increase operating margins by more than 500 basis points going forward.
As Olivier said, the best is still to come. I hope that I have shared that with you today. Thank you for your time and attention, and I look forward to speaking with many of you throughout the rest of the day. Thank you.
Hello there, ladies and gentlemen. I am so pleased to be with you here today. My name is Rajeev Sonthalia, and I began my career in SLB as a wireline engineer some 25 years ago. Actually, it was 30 years ago. Really? I was only trying to make myself look younger. Remember, I started as a wireline Engineer, then moved to a role in HR, Product Management, roles in Well Construction, Reservoir Performance, P roduction Management, and leading roles in Geographies. Now, I head the Digital & Integration division. Yeah. Yeah. That's just what I was gonna say. Of course you were. Today, I'm gonna tell you about our digital performance strategy and its application in the new industry landscape focused on our customers' imperatives.
I will tell you about how we can enhance growth for our customers, actual returns, increasing productivity and efficiency and lower costs and carbon. What you've just seen is an example of the application of digital technology in bringing to life a human digital twin. SLB is doing this on a much, much larger scale and much more complex environment for the entire energy industry, enabling operators to create digital representations of the subsurface, their wells, and their Production Systems, all interconnected. Just one example of our unique value proposition in Digital. Ladies and gentlemen, the focus of my presentation today will indeed be digital, which is a component of the total business under Digital & Integration. We're not new to this. Almost 30 years ago, SLB was already in the Digital business. In those days, we didn't call these capabilities digital, of course. We called it software.
It's been a big, big contributor to revenue and margins for a long, long time. Since 1992, we have acquired, integrated, and grown more than 20 companies to establish SLB as the leading software business in upstream oil and gas. We have over 1,500 customers and a user base of around half of the industry's technical workers. Our long history means that more than 85% of the world's top 100 oil and gas producers depend upon one or more of our established software applications. These applications are akin to Microsoft Office for the industry. It currently forms the majority of our offerings and revenue streams today, and is a resilient foundation upon which our digital platform strategy will scale. More about that in a moment. These customers are eager to transition to new ways of working with SLB as their partner.
It is our 750-strong sales organization and more than 4,000 SLB engineers and scientists in all corners of the world that build on this trust and work in close collaboration with our customers as they digitally transform their businesses. Today I will tell you about how we're leveraging this unique foundation to create a high-growth, new tech Digital business for SLB on top of our already very strong established software business. This unique history also affords us a special position at the heart of the technology ecosystem that has sprung up around us in this digital era. Here we have a unique roster of partnerships, some of which are exclusive and cannot be copied, such as our relationships with Microsoft and Cognite, an Oslo-based tech unicorn.
With both of these companies, we not only go to market together, but we have jointly committed engineering resources to co-build the industry's data foundations that I'll talk about in a moment. Our privileged position was in evidence at the recent SLB Digital Forum. More than 1,200 industry leaders joined us in Switzerland alongside the CEOs of many of our customers and our partners, including Amin Nasser of Saudi Aramco and Satya Nadella of Microsoft. I know some of you were there and may recall Satya saying, "If you're not on the cloud, you are falling behind." The cloud, the industrial IoT, and AI are poised for mainstream adoption in this sector and are beginning to transform our customers' performance in solving the complex problems of our industry in new ways.
When you combine these technologies by new business models and the strong domain knowledge that we possess, they begin to change the global business and economic landscape forever. Ladies and gentlemen, this is our moment. The scene is set for Digital to make a material impact in our industry by reducing cycle times and risk, accelerating returns, increasing productivity, while at the same time lowering costs and carbon. Almost eight years ago, SLB saw this emerging digital opportunity and anticipated its future transformational power. Our vision of a platform was born, and in 2017 we announced Delfi to the market, the industry's first integrated cloud platform. Our platform is founded upon a data layer comprised of SLB, partner, and open source technologies. It is unique in providing data coverage across the full upstream value chain.
It connects the key processes through exploration, development, and production, and it connects our customers' plan activities on the cloud to their operations on the edge. On this data foundation we have built a secure environment, connecting users to one another for collaboration across boundaries and silos, but very, very importantly, to our industry leading engines and simulators which leverage the compute power of the cloud to enable transformational levels of efficiency. Unified data infrastructure and a single canvas for users allows for scaled deployment across a customer's business and for the layering on of limitless apps. Apps from SLB, apps from our customers, and apps from the ecosystem of software vendors and startups that are beginning to feel the pull of our platform. If you're thinking iOS, Android, I'll let your imagination run away with you.
The combination of these, our unique foundational strengths, our large install base, our network of partnerships, and our early, very important investments in our platform enables us to rapidly penetrate and to accelerate customer adoption. Since launch, we've acquired more than 260 customers, 65 of which are new. This is leading to an emerging and fast-growing new tech Digital business inside SLB. Though the global community of Delfi users is only just beginning to ramp up, we have around 4,000 users today. About one in six of our 1,500 established customers are already consuming our platform in one way or another. You may have seen varied use cases among customers of diverse profiles in press releases over the last couple of years. At OMV, we are integrating workflows between subsurface and drilling.
At PETRONAS, we're integrating data to accelerate field development planning and production optimization. At Chevron, we are working closely with Microsoft to completely transform their work processes across upstream. In all these cases, Delfi is being deployed at scale in a secure and open environment, enabling expansion opportunities, which I'll come to in a few minutes. First, let me show you how this new tech Digital business compares with the selection of successful pure-play digital peers also operating in the energy space, companies like Snowflake, Palantir, and others. As you can see, we are comparable against their performance across many of their metrics. Our new tech Digital business is growing at high double- digits. In the last three years, CAGR was almost 90%, and growth in the last 12 months alone was 70%.
As we increase in size, our five-year forward CAGR is projected to be about 50%. We are constantly adding new customers to our platform, and we tend to keep the most of the customers we acquire. Our monthly customer retention rate has been over 95% for the last 12 months. Looking at these pure-play metrics, I am confident that we are on the right track to deliver a new fast-growing Digital business for SLB with highly accretive margins. Not only are we increasing or accelerating adoption, but we are also leveraging the platform to expand our coverage across the entire technical workforce of our industry. If you recall, I said we cover about half of the industry's technical workers. We wanna expand that to the entire technical workforce. Even in our home territory of subsurface, we see significant room for growth.
Customers are beginning to realize that partnerships are critical to unlock the value of their own proprietary workflows and their own intellectual property. They are now looking to the market for commercial solutions, so they can leverage the cloud to scale these use cases and also create new ideas which seamlessly integrate often siloed workflows. What they find is that SLB is a very, very capable partner to help them accelerate their own respective digital transformation journeys. Foreseeing this increased demand from customers to co-develop, to scale, and to integrate their own differentiated IP onto the cloud, we have now opened six Innovation Factoris around the world. In these facilities, we work hand in glove with customers to rapidly accelerate the process of taking experiments and concepts to fully deployed enterprise-scale digital solutions.
In the 18 months since launch, we, along with our customers, have co-created 21 new products. That's almost one new product every month. Some of which are being deployed globally via the SaaS business model. Two weeks ago, our Innovation Factori won the World Oil Award in the New Horizons category. As we increase the range of our apps on the cloud, customers are beginning to understand how adopting a fully integrated ecosystem of data, platform, and apps can unlock tremendous value for their businesses. This is allowing us to penetrate and rapidly gain market share in the very large and fragmented markets of drilling and production operations. Here we're making significant headway with new products and solutions that allow customers to radically transform their approach to operations.
As I mentioned earlier, in partnering with Microsoft and with Cognite, we will create the only data platform in this industry, connecting subsurface to operations, providing a strong basis for growth in these markets. Moreover, our strong capabilities in digital operations will allow us to create new levels of efficiency in our own businesses, which you heard about earlier this morning. You will see examples of this in our Digital and Well Construction technology showcases. An adjacent market, but with a value chain of its own is carbon. Our customers and their suppliers in diverse industries such as chemicals, utilities, cement, and steel tell us that major capability gaps prevent reliable emissions insight across their global operations. This is, of course, a nascent market, but I believe with terrific potential and huge white space.
A great deal of what we have built in Delfi can be retuned to deliver an open and extensible digital sustainability platform. This platform will allow reporting and the means to plan and execute decarbonization pathways with confidence. Saudi Aramco is the first industry partner to collaborate with us on this initiative, bringing together two industry leaders around use cases in decarbonization, water sustainability, and supply chain circularity. You can once again learn more about how we're addressing these opportunities in the technology showcase. Of course, our ambitions do not end with carbon when we look at opportunities beyond oil and gas. We see many more adjacent and non-adjacent verticals where we can leverage our strengths to create value, and we're actively working on a portfolio of fresh digital opportunities.
You've seen now how adoption of our new tech Digital portfolio is accelerating and how we will achieve market expansion. I know that all of you will be very curious about how we are making money. I'll just talk about three avenues available to us, in this business. First, as we transition our customers from consumers of our established software applications to our digital platform, we move them from a user-based license model to SaaS subscriptions. As a result, we relieve them of their legacy infrastructure and deliver new values, new levels of value creation, enabling, most importantly, more revenue per customer. Second, once we have customers on our platform, we can add a new variable revenue stream on top of our SaaS subscriptions. Customers can now access limitless tech resources such as storage and compute from our cloud partners.
More significantly, they have unlimited access to our fully interconnected industry-leading simulators. Our customers appreciate that every extra simulation shortens development cycle time and reduces risk, and hence they are more than willing to pay for this new capability. In the last 12 months alone, our customers consumed over 12 million CPU hours. That's a lot. A figure that has doubled year-over-year. Third, we have a huge opportunity to monetize services. Managing data migration, workflow redesign, and transition are aspects of our customers' digital journeys where they're asking for help, and we are uniquely positioned to provide it. On top of this transition effort, sustaining and operating this digital infrastructure can consume considerable resources, providing us with a recurrent revenue stream that grows in line with adoption.
Based on what we see in terms of adoption, expansion, and monetization, we expect, as Olivier mentioned earlier, to double the size of our Digital business from 2021 to 2025 while continuing to generate highly accretive margins. I repeat, our total Digital business, which includes our established software business on the desktop as well as the new high-growth Digital business on the cloud, will double in size from 2021 to 2025. I hope I've left you with no doubt that our industry is at an inflection point and is looking to SLB to deliver on the promise of digital. The goal is crystal clear, higher value, lower carbon. Our total Digital business represented mid-to-high- single- digits in terms of percentage of total SLB revenue in 2021.
We anticipate that this percentage will reach or exceed 10% of total by 2030, expanding further the impact of our earnings growth potential. As I close, I would like you to remember three things. One, our long-established install base, unrivaled customer intimacy, and unique partnerships provide a solid foundation for SLB success. Two, the multi-year investments in our platform, see us p rimed for accelerated adoption and growth, both in our Core business and in new and evolving markets. And three, we have multiple short, medium, and long-term pathways to monetization. Ladies and gentlemen, through digital, we will completely redefine the future of energy and also the future of SLB. Thank you.
During the next 30 minutes, as I make this presentation, 4,600 people will be added to the population of the planet. At that rate of increase, given our current demographics and consumption patterns, that would mean a 20% increase in the global demand for energy by 2050. At the same time, in order to mitigate the effects of climate change and overhaul the world's energy systems, we need to do that to achieve net zero, and in doing so, balance the planet. To do all of this, we need energy innovation, we need lower carbon, and we need higher value. We need to go further. Good morning, everyone. It's great to be here with you. My name's Gavin Rennick, and I'm the President of New Energy.
I've been with the company for 24 years and held a variety of positions spanning line and geographic leadership, Engineering and M anufacturing, Digital, M&A, and Human Resources. I'm very excited to talk to you today because New Energy represents an incredible opportunity, an incredible opportunity for our company at a time that's critical for our planet. Our strategy for creating and scaling a diversified portfolio of businesses focused on decarbonization and clean energy technology will be key to the company's future. Now, it's clear today that the energy transition is accelerating. It's moving from talk or commitments to policy, to law, to actual investment and projects as globally energy security, affordability, coupled with climate change take center stage.
In fact, the total investment in energy transition has more than doubled over the last five years, and according to a report from the IEA released just last week, will more than double again by 2030. Now, this is driven by energy security and affordability. It's driven by stronger carbon pricing mechanisms coming into place, and it's driven by targeted incentive schemes. You know some of these, REPowerEU in Europe, the Inflation Reduction Act here in the United States, and similar vehicles in Japan, in Korea, in Australia, and in many other countries around the world. The total value of those announced incentives is about $1 trillion in funding, and $400 billion of that is specifically targeting areas that we are focusing on and that you'll hear about a lot more today.
Next week with the spotlight on the COP27 conference in Egypt, I expect to see this accelerate even further. As a global technology company, this represents one thing and one thing only, an absolutely incredible opportunity because to achieve net zero requires an enormous amount of innovation and many, many energy technologies deployed at scale. Let me be a little more specific as to how we see this opportunity. As I said, global energy demand up 20% by 2050. Simultaneously, global emissions need to be reduced or offset to achieve net zero. About a half of these emissions, about 25 gigatons, 25 billion tons per year of CO2 come from industrial and power generation sources.
Our ambition as a company is to focus on these emissions, to address these industrial and power generation emissions while simultaneously ensuring we meet the world's needs for reliable, affordable, cleaner energy. By doing this, we intend to establish SLB as a global technology leader in industrial decarbonization and clean energy. Okay. How will you do that, you ask? Well, we are systematically building a portfolio of businesses, great businesses, a diversified portfolio that in the conservative scenario of just implementing the policies around the world that have been announced today will more than double SLB's total addressable market. A portfolio that will materially impact those 25 gigatons of CO2 emissions. I'm excited today to talk to you more about our strategy to create this portfolio. I wanna walk you through some of the progress we've already made.
Our approach to the selection of businesses in New Energy employs three key principles, impact and materiality, adjacency, and business model. If we start with impact and materiality, what this means is we are prioritizing businesses and business opportunities based on market size and growth, the emissions impact that can be had, and the potential size of the actual business that we can grow. Practically, this means focusing on individual business opportunities that target a specific market of more than $10 billion per year within the next decade. Potentially enable hundreds of megatons of emissions impact, and each have the potential to be a billion-dollar business by the end of the next decade. That's what I mean when I say impact and materiality. Second, adjacency.
We focus on opportunities where SLB's inherent capabilities and strengths and our experience provide us a launchpad to enter and then grow quickly. This comes in a few different dimensions. Firstly, leveraging our unmatched understanding of the subsurface and decades of experience in developing. Secondly, our ability to engineer and manufacture high-specification industrial process systems, which we already do today. Third, our ability to rapidly deploy complex technology at scale globally in more than 120 countries and across more than 70 technology centers. There's customers. Our ability to deal with B2B industrial customers, beginning with our existing customer base, expanding into refining and petrochemicals, into steel, into mining, into power, into heat, and into other energy-intensive industries that have both the capability and the financial intent to decarbonize.
We focus on opportunities that maximize leverage from these adjacencies, providing us with a right to play there. Third, we're focusing on business models that are technology-led with the potential to be accretive to the company's returns over the long term. This means we are targeting opportunities where technology can enable a disruptive new solution or strongly drive economics, and where our innovation capabilities that Demos talked about earlier today are fully leveraged. We're building a highly differentiated technology offering through a combination of internal R&D and innovation, focused technology M&A, and partnerships. To establish and maintain technology leadership, we are going to ramp up the New Energy R&D investment to more than 1/3 of SLB's total R&D spend within the next decade. 1/3. Within pure research, New Energy will represent 50% of our research activity next year in 2023.
In addition to this, we're continuously scanning the landscape, engaging in, investing in, and acquiring promising technology companies. These companies, these startups, see us as very attractive to work with due to our brand, our development capabilities, and as an unmatched industrialization and global deployment partner. We're also working with bigger companies, great partners that have complementary capabilities. Such is the case with Linde, with whom we're bringing to market carbon capture solutions focused on the hydrogen, ammonia, and natural gas markets. Panasonic, with whom we are developing a sustainable lithium supply chain in Nevada. The CEA, the renewable research energy agency of France, with whom we have created a company, Genvia, that I'm gonna talk about a little bit more later. Technology-led R&D, M&A, partnerships. These businesses also largely employ capital-light business models.
In practice, this means a combination of manufactured products, services, and digital revenue streams coming together. It also means that we don't sell hydrogen or electricity directly to a customer, nor take the lead in capital projects that are also associated with resource ownership, yeah? In this way, the portfolio is being constructed to ensure that it has that potential to be accretive to the company once scale and maturity is achieved. Now, we're very thoughtful about selecting these opportunities, and we do it with advice from our board, where we've actually established a dedicated New Energy and Innovation committee. High impact, material adjacent, technology-led, capital light. Okay, that's our strategy. Where do we stand with that today? Today, we've already established a broadly diversified portfolio. It's diversified across different value streams in energy transition. It's also diversified in terms of input commodity exposure.
It's diversified in terms of the maturity of the technology. It's diversified in terms of its time horizon for growth, and it's diversified in terms of its geographic application. This portfolio spans five business areas, carbon solutions, geothermal and geoe nergy, critical minerals, stationary energy storage, and hydrogen. Now, the result of this is that we have chosen to focus on a total addressable market, which at $700 billion conservatively, will more than double the total addressable market of SLB by the end of the next decade. now let's talk about these businesses in a little bit more detail. Let me start with carbon solutions that fully leverages our strengths in both subsurface and processing equipment. CCUS, carbon capture, utilization, and sequestration, it's a bit of a mouthful, is an enormous opportunity, and in North America is accelerating with the Inflation Reduction Act.
In Europe and in the Middle East, where there are national ambitions to lead the decarbonization agenda. Now, SLB has been in the CCUS business for more than three decades. Three decades. Today, we're actively involved in 22 significant carbon capture and sequestration projects globally, representing 175 megatons per annum in abatable emissions. We're also providing discrete products and services or consulting for another 52 early-stage prospects. How do we participate in this market? Well, CCUS projects can be split into capture, transportation, sequestration or use. We do not play materially in transportation, building pipelines and compressors and that sort of thing. We don't have a position in carbon use today.
In a pure sequestration project, we participate at different levels of integration, from integrated subsurface field development, where we run the entire program for the field, through to providing key products or services in evaluation, construction, or injection. We've developed key technologies specific to CCUS. From formation evaluation that you heard about this morning with Ora, to specialized cement, to permanent monitoring technology, to reservoir simulation models. All of these are there to ensure that the CO2 injected is safely injected and stays exactly where it's meant to be in the reservoir. Also, with partners, we are developing a unique set of technologies to capture carbon in the most economical way. Now, we recently acquired exclusive rights to next generation of absorption technology from a company called RTI International.
This is an exciting technology that has the potential to address a range of emissions, a broad range of emissions, with applications that cover over 80% of the capture market. These are real steps, and we see the CCUS market accelerating to being above $50 billion per year by 2030 and over $250 billion by 2040. This is an attractive market. It's accelerating now. It has enormous potential to decarbonize industry. That's carbon solutions. Okay. Let me move now to another business area that's also accelerating rapidly and also leverages SLB strengths, geothermal and geoenergy. The inherent stability of geothermal energy as a baseload renewable power supply and today's economic realities have led to a strong resurgence of support. The geothermal market alone for power generation is predicted to grow from 16 GW to circa 100 GW by 2050.
That market is also expanding, driven by pure heating applications. Now, understanding the subsurface is a key SLB strength, and that extends to heat. GeothermEx, our geothermal consultancy, is by far the leading consultancy in the world on geothermal assets, having assessed resources across the globe for over 50 years and been involved in 80% of all currently operating geothermal fields. Beyond consulting, we also provide integrated field development for geothermal fields. We've actually completed projects in the Philippines, in Indonesia, in Turkey, and in Mexico, and that's above discrete services. Then you move on to the question of efficiency, of energy efficiency. Well, heating and cooling together represent 65% of the energy consumption of buildings in many large cities like London, like Paris, and well, like right here in New York.
This offers a huge opportunity for reducing emissions, which is where geoenergy comes in. Our Celsius Energy business today leverages our inherent subsurface and engineering capabilities to provide a solution to efficiently heat and cool large-scale facilities. The system reduces building emissions by up to 90%, up to 90%. There are over 300,000 target facilities for this business in Europe alone. Having been founded through internal innovation as a startup, we have commercialized the system and just been awarded the largest geo energy project in France, one of the top 10 in Europe, and we now have a significant project pipeline building beyond this. You can actually see the Celsius Energy system at the cocktail event this evening and talk to one of the founders who's here with us. That's geothermal and geo energy.
Now let's pivot to another business area that is absolutely essential to energy transition, critical minerals. Okay, you all know the energy transition requires a range of technologies from solar panels to batteries. These technologies rely on key critical minerals in order to be built. There's a projected quadrupling in the demand for those critical minerals by 2050. There's a lot of market pressure to secure access to this in a sustainable, reliable domestic supply chain. The mineral under the greatest pressure with demand expected to increase at least 12x by 2040, driven by the battery market needs, is lithium.
The lithium market projects a shortfall between demand and supply of about 40% by 2040, with prices already rising from around $20,000 per ton to $70,000 per ton on the spot in the last 12 months. Lithium is produced from two different types of resources, from hard rock via mining and refining, and from brines via evaporation in big ponds. Now, these existing methods are energy-intensive. They use a lot of water and land, and they are largely not within a domestic supply chain. We have chosen to initially focus on brine, lithium contained within water found in the subsurface, and this plays to our strengths. New brine resources can be unlocked utilizing an approach known as direct lithium extraction or DLE.
This requires the drilling of wells to produce the brine and then subsequently reinjecting water into the reservoir, having processed it to remove the lithium. Sound familiar? It's the processing here that's really key. NeoLith Energy integrates multiple exciting technologies together, processing technologies for lithium extraction, concentration, and conversion efficiently and sustainably, enabling the production of battery-grade lithium products. Our pilot project, you can see the model just out there, is now under construction in Nevada. This project's expected to use 15% of the water, reduce emissions by between 60% and 80%, and use just 7% of the land compared to the current practice. It should be operational by Q2 next year. This method unlocks access to new lithium resources and enables domestic lithium production in any country where brine resources exist.
Now that we've addressed the opportunity of supplying a tight lithium market, let's look at another complementary avenue of growth with great potential stationary energy storage. Stationary energy storage is a key enabler to make variable renewable energy resources, solar and wind predominantly, a larger component of the world's electricity systems via energy shifting. This means you've got to get the power to the customer in the right time at the right place to meet demand. Now, as renewables penetration increases, which it will, so does the need for more and more storage to ensure efficiency of renewable assets and reliability of grid systems. Large-scale, long-duration energy storage is key here, and this market's growing rapidly.
We've already made a couple of moves, and one initial investment we have is in EnerVenue, a California-based startup that delivers nickel hydrogen battery technology, non-lithium-based, initially used in space, economic, safe, that targets the up to 10-hour storage market. We've also invested in another company, an Australian company, RayGen, that has a novel approach to providing much longer duration via thermal energy storage and suited for large-scale solar assets. This is an exciting area for us, and you're gonna hear much more about that in the coming months. Finally, I wanna cover what could be our largest, most exciting long-term business opportunity, hydrogen. Hydrogen has huge, huge potential to decarbonize industrial sectors globally. Demand for low-carbon hydrogen is growing fast, fully supported by large public investment programs, targets, and the incentive schemes I talked about earlier.
We conservatively expect a 10x growth in low-carbon hydrogen from 2025 through 2040. Within the hydrogen ecosystem, we have chosen to focus on production technology. What's that? That means developing the technology that creates low-carbon hydrogen from either electricity or from gas in the most economic, the most sustainable way. Let me talk about Genvia. Genvia is a unique joint venture, a public-private partnership in which we are the lead investor and industrialization partner, along with the CEA, the scientific research agency of France. Genvia is developing high-temperature solid oxide electrolyzer, and this technology is focused on the most efficient conversion of electricity to hydrogen for industrial applications where process heat is available. Why is this exciting? It's exciting because this technology improves efficiency from where we are today by 30%.
That means you need 30% less windmills, you need 30% less solar panels to produce the same amount of hydrogen. It's so exciting that the company already has six pilots in multiple high-emissions industries, including petrochemicals, cement, and steel. In addition, Genvia was recently selected by the French government as a key project to receive a grant of up to EUR 200 million to accelerate bringing this technology to market as quickly as possible. You'll be able to see and actually touch this technology yourself in the technology showcase later on today. We've also partnered in another company, ZEG Power, a startup company that has a disruptive process to produce low-carbon hydrogen, this time from natural gas, with integrated carbon capture.
The hydrogen market is expected to grow strongly from around 2025, driven by industrial applications, and reach just under $280 billion. $280 billion by 2040, and then really take off after that as the full hydrogen ecosystem around the world develops. We have multiple exciting, disruptive technologies. We have a potentially huge market. We have strong, sophisticated partnerships, and we have tremendous government support. That's hydrogen. This is where we are. We have five big focus areas. Across this portfolio, we are diversified. We have lithium production and non-lithium batteries. We have early-stage breakthrough technology in Genvia, energy storage, and we have mature, proven technologies in carbon solutions and geothermal. We will work with our existing oil and gas customers and new customers and partners in new industries.
Across all of this, we have unique expertise to innovate, to develop, to industrialize, and to deploy technology on a global scale. Before I close, I need to underline a few key points. This energy transition provides us a truly incredible opportunity that will more than double the total addressable market of SLB by the end of the next decade. Our ambition is to grow the New Energy portfolio into a revenue stream of greater than $3 billion by 2030 and at least $10 billion by 2040, with significant potential upside from these numbers as the world drives towards net zero. In doing this, we will create a true engine of growth for the company, and SLB will play a key role in enabling the reduction of those 25 gigatons per annum of emissions.
We already have an exciting pipeline of technology and projects that fully leverage our strengths and are beginning to deliver results. This gives us confidence, real confidence, that we can establish ourselves as a technology leader here in industrial decarbonization and clean energy solutions. In doing this, we plan to play a key role in meeting the world's needs and building a bright future for a balanced planet. Thank you.
Good day, everyone. It's a great pleasure to have you all here today. I would like to talk today about our global deployment platform and tell you a little bit about my world, our Geographies. I have the privilege of leading four basin organizations that are deployed around our geographical structure that runs across from Americas land to offshore Atlantic, to Middle East and North Africa, and to Asia. You'll have the chance this afternoon to meet the four presidents and interact with them directly. Within these basins, we subdivide the world into 30 GeoUnits, which are grouping of countries with similar operating characteristics and geographical proximity. We use this as our platform to serve over 120 countries and more than 2,000 active customers with a workforce of nearly 98,000 people around the globe.
Let me tell you, this is a scale and reach unlike any other in our industry. This morning, you heard how we are building our future on the three engines of growth. My organization runs across all three, and I will not explain only what responds to today's customer challenge, but will always be relevant in helping a changing energy mix. There are three attributes I would like you to remember about our geographical organization. The first is we use our global might to provide local solutions. Secondly, we have unique customer intimacy built over decades of partnership and investment. The last attribute is our broad and far reach that truly sets us apart. Now let me expand a bit more on each, starting with the first attribute.
Earlier from Abdellah, you heard about our fit- for-b asin technology solution, which brings our global engineering capabilities to local scale. Let me share with you an example of what we mean here. In the world's largest gas field in Qatar, we developed a custom logging while drilling tool. We call it the North Field MicroScope HD tool. It saves Qatar several days of rig time per well. On a project of this scale, this represents tens of millions of dollars of savings for our customers, who's obviously very happy to share some of it with us. This type of solution is only possible through applying our unique global domain knowledge and deep understanding of the local reservoir challenge. Building on our fit-for-basin program, we went one step further. Nearly three years ago, we tasked about...
We tasked our North American management team with a challenge, a challenge of increasing market across our business beyond the traditional service share. A unique business model was born, which today we refer to as technology access. In this model, we monetize our technology advantage by selling or leasing selected technology to local and regional service providers with a license to operate only in their specific markets. Doing this expands our total addressable market and creates an installed base for our solutions. The best example for this is the provision of our rotary steerable drilling system to local service contractors in Lower 48 and Canada. This allowed us to grow our market penetration in untapped market, where the diversity and the number of local service providers had been a hurdle to our traditional business model.
As a result, the technology access for directional drilling market has grown steadily over the last three years, and today it's almost equivalent in size to our traditional service business. In other words, we have doubled our market share in this highly fragmented market. Yes, we have doubled it. Let me move now into my second attribute, customer intimacy. The Geographies take prominent responsibility for representing the voice of the customer in our organization. Earlier this week, I was at the ADIPEC conference in Abu Dhabi and had the pleasure of meeting many of our customers, obviously focused on our Middle East and Asia customer base. What strikes me is the depth of the relationship we have with them. We proudly have their trust, and we have their respect. An example of this is our commitment to their various In-Country Value programs in that region.
In-Country Value, or ICV for short, used to be just about hiring and developing local talent, which we obviously excel at. Today it's more sophisticated. It's now about energy security, GDP diversification, and supply chain integration. Consistently, SLB ranks at the top of these programs, and it's very much by design. Nobody would be surprised if I talked about manufacturing in the U.S. or China. What about if I said we have been manufacturing for decades in Malaysia, United Arab Emirates, Saudi Arabia, Brazil, and many other non-traditional manufacturing centers? We have over 60 manufacturing sites and a robust supply chain network. Our strategic investments are in the right place. Our customer intimacy unlocks opportunities and generates value. We share in the premium that we generate. Building on this, customers increasingly look to us to guide them in their digital journey.
We can develop digital capabilities across the world, recruiting and developing local engineers, making us digitally native in each country we operate in. As you heard from Rajeev, a great example of that is the Innovation Factori deployment, which enables our customers to accelerate adoption of artificial intelligence to solve their business challenge. I could give you lots of examples from the six hubs we currently have, but I would like to mention two of them here to demonstrate the value creation. For Pertamina, the national oil company in Indonesia, we have developed workflows for reservoir water flooding, which shrinks work cycles from six months down to only one. In ADNOC, the national oil company of Abu Dhabi, together, we have calculated the potential of $10 billion of savings to be unlocked through a joint development program of intelligent, integrated subsurface modeling.
Impressive examples, but only the tip of the iceberg of our AI and digital capabilities. Now allow me to go to my third point, our reach. Our history around the world makes us the most trusted energy development partner. Our relationship with the host countries is a privileged one. The confidence we convey, the performance we deliver, and the broad reach we have provide us with unique access to strategic projects and initiatives around the globe. This capability becomes increasingly important in the New Energy landscape, where everything is local and success will be defined by who can successfully deploy this close to the end user. Each country will define their own path on the transition journey, better known as Nationally Determined Contributions, or NDCs, which sit at the heart of the Paris Agreement.
We're already positioning ourselves as partner of choice with examples such as the recently launched sustainability platform with Saudi Aramco, demonstrating close alignment with major resource holder and joint commitment to decarbonization. We're also connecting with the policymakers and regulators to understand the transition programs and to help them industrialize and scale the New Energy solutions. From France to Colombia to Nevada, in every place we have a presence, we are being approached to partner, explore, and develop low carbon energy solutions. Our operating platform is resilient and has natural adjacencies to the customer base and technology application, which can be leveraged across multiple energy sources. We are very focused on using our amazing global reach to maximize benefits in the coming years. Let me now invite Carmen, our Chief People Officer, who represent those at the center of everything we do, our people.
The incredible pool of talent whose local expertise and unique capabilities create value for our customers, shareholders, and communities. Carmen, please come to the stage.
Thank you, Khaled, and good morning, everyone. It is a pleasure to be in front of you today. As we have shown you today, we have a bold vision for this company. We have always been known, and we will continue to be known, for our innovation and our technology. We should make no mistake, it is the people behind that innovation and technology who truly power our progress and define who we are. Our 98,000 employees are our most precious asset, and our commitment to them, to the technology they create, and to the performance they deliver, has never been stronger. Our history and our culture are built on leadership, science, and innovation, and that same defining spirit remains. We are still scientists and innovators and still pioneering.
Our aim is to constantly push the technical limits of our industry, challenging conventional thinking and looking for better ways to get things done. Always leading the way. This is one of the reasons why we can attract and retain the talent that we do. It is actually one of the reasons why the best of the best want to work here. The workforce of SLB has presence in more than 120 countries, and we represent more than 170 nationalities. Year- to- date alone, we have recruited in 83 different countries from 135 nationalities. This is a testament to the spread and the strength of the platform that we have built over the years and that we will continue to leverage. Our global platform is a competitive advantage.
It allows us to navigate the different labor market and to tap into sources of talent across the world as needed. This platform allows us as well to scale fast. We have recruited more than 10,000 people in 2022 to capture and deliver in the current upcycle. As you have seen and heard from the many accents that you heard this morning, this platform also gives us the power of diversity. Diversity has always been in our culture. It is who we are. Recruiting where we work makes us a unique company with global resources and local expertise, able to understand, respect, and work in the culture of our clients.
Over the decades, we have expanded our diversity well beyond nationality. Today, in SLB, when we talk about diversity, we talk about nationality, we talk about gender, and we talk as well about another category that we intentionally call beyond gender and nationality. At the core of our diversity, there is our culture of inclusion. We all recognize that we cannot have a diverse, successful workforce without having an inclusive culture. We recruit locally, as you have seen, and then we train and develop globally. We are recognized in our industry for our capabilities to train and develop our people continuously. Our four training centers cover our population across the globe and deliver on average more than 150,000 equivalent training days per year. Again, another competitive advantage.
We know as well that the decisions on people that we make today will impact our readiness for the future. We are intentionally training and developing our people to be able to deliver value as soon as possible, but also to be proficient in new domains, like Digital and New Energy. For that, we develop them internally, but we also partner with the best universities across the globe. As a matter of fact, we have just been recognized this year, a few weeks back, by the University of California at Berkeley, with their prestigious Leader in Lifelong Learning Award. As a technology leader, we offer an environment of continuous challenge and development alongside the most talented and diverse team of experts in any industry. This remains a compelling argument to build a career in SLB. Actually, I'm a living proof of that.
21 years in the company, Engineer by background, I have worked and lived in six different countries across four different continents. I have worked in Engineering, Manufacturing, Operations, Shared Services, and now in Human Resources. That makes many careers into one. Now, we have to strengthen our employee value proposition with our new inspiring identity and with our ambitious goals to decarbonize our activity, our industry, and beyond, leveraging our digital capabilities and our technology and innovation at large. We know that this speaks volumes to the engagement of our employees and to the attractiveness of our future talent. Internally, our yearly survey shows that 2022 is the best year in terms of employee engagement. Externally, the number of applications that we have received year-to-date from people wanting to work for us has reached a historical high at more than 300,000 applications year-to-date.
Our people are already telling us how our new brand positioning and our renewed commitment to sustainability are powerful elements to attract, retain, and motivate. Going forward, we know that we can only expect these elements improving even further. When looking for talent, we search for curiosity and passion. It is this curiosity and passion for exploring that enables us to solve the world's greatest energy challenges. We have done it before, and we will do it again. Our global platform allows us to scale fast everywhere. Our diverse and powerful team is fully ready and committed to deliver for our customers, for you, our shareholders, and for the planet with integrity and purpose. We are ready to go further. Thank you again for joining us today.
Good afternoon. What you have seen today is a vision and a roadmap of how we will go further. Further in oil and gas. Further in decarbonizing industries and scaling the New Energy systems of the future. Further with digital and sustainability in everything we do. All of that for a balanced planet. When astronauts go into space, they sometimes experience something which is called the overview effect. It actually means that the person sees the Earth in a very unique way, almost as a reminder of how small and how fragile this planet of ours actually is, and how much we need to protect it.
I had my very personal overview effect in May 2019 on an expedition to Greenland. Seeing what was happening to that part of the world made me really want to do something and to dedicate a part of my career to work on this enormous challenge that we are facing. SLB is what gave me the opportunity to do so. This role is actually very personal to me. It is an incredible opportunity that was created by combining strategy and sustainability within a company that is so focused on addressing the energy challenge. I believe that these two are actually very much interlinked, and by having a clear strategy for what's ahead and completely linking the strategy to sustainability goals, our company will deliver real change.
The creation of this role was a bold declaration of what our priorities and are, and how central strategy and sustainability have become. To put this in context, upstream, midstream, and downstream are together responsible for 5.2 gigaton CO2 equivalent emissions, and that is about 10% of the global emissions that we have. SLB has a powerful role and the ability to play in decarbonizing oil and gas and other industries, as we heard from Gavin, while finding a way to meet the enormous demand for energy. I'm actually incredibly excited to have the chance to be at the forefront of driving this change. Today you have seen SLB in action and what makes our company so very special in this. We have a proud history, and we even have a more exciting future ahead of us.
To preserve this future, it will require a real balancing act for us to meet the challenge of providing affordable, accessible, and reliable energy in a world with strong energy demand growth, while we have to address what's actually on the screen behind me. It's the carbon budget curve. It shows the maximum amount of cumulative net global CO2 emissions that would result in limited global warming to 1.5 degrees Celsius. This curve is actually a reminder that we not only have to get to net zero, but we have to accelerate to get there, so we don't have our carbon budget eaten up by end of the century. When we finally got there, we need to go on for a very long time.
We could think of no better way to use this shape, this reminder of the challenge ahead of us than to put it at the center of our identity, to put it at the center of our company and at the center of who we actually are. This is why sustainability and our strategy are so closely linked and will guide us forward. Our customers are actually no different. Their focus on low carbon products and services creates major opportunity for us. You've seen today how we are already on the strategic path. You heard about our innovation efforts to eliminate methane emissions in our end-to-end SEES business. You learned about how our Transition Technologies portfolio is directly reducing emissions in our customers' operations every day. Some of us discussed it during lunch.
We've shown you our sustainability platform, which enables heavy-emitting industrial companies to collect, measure, report, and verify sustainability data accurately and efficiently. Finally, you saw our plans to implement breakthrough exciting solutions in the New Energy and new carbon world. When our customers in both oil and gas and New Energy look for a partner to drive energy innovation and help them on their sustainability journey, it'll be us they will turn to. This is reflected in our strategy and serves as the common theme across our three engines of growth. We are an industrial leader driving innovation in the oil and gas Core, and a key aspect of our innovation efforts is our commitment to decarbonize our operations. We are a data solution provider in the energy domain and beyond with our Digital business, which helps drive performance, efficiency, and sustainability.
We are a technology solutions provider that develops and scales the New Energy systems of tomorrow. You heard Gavin talk about addressing global emissions by targeting the industrial sector. We have a powerful role to play in reducing emissions across many industries, while we are scaling the New Energy systems to help meet the enormous demand for energy. In all three pillars of our company, our strategy is based on expanding into adjacencies, and into adjacencies that show accretive margin levels for us and that are interesting that way. We are able to do this because of our very unique strengths and the capabilities of our people. Our strength in subsurface, our technologies, and the capability to industrialize fast pace due to our global setup, gives us the right to play in these markets with a significantly larger total addressable market as we actually have today.
Before Stephane walks you through our financial targets, I want to show you how we are integrating both strategy and sustainability in everything we do. First, I'd like to specifically talk about how we are reducing emissions in our own operations. Secondly, I'd like to give some examples how we are using our technology to lower our customers' emissions. Thirdly, and I think that's a very important point, I'd like to talk a little about measuring our success, and that's one of the discussions during lunch as well. Since this ability to measure success is a really important enabler in sustainability. To underline our commitment, I'm particularly proud of our bold science-based targets, which are, of course, aligned with the Paris Agreement. We launched these last year to reach net zero emissions by 2050.
We were the first company in our industry that included Scope 3 emissions in the 2050 net zero target, which is a bold step to take. While these targets are ambitious, we are sure they are achievable, and they are needed to drive the necessary change. We are implementing a detailed roadmap per division and per geography to make sure that we are having steady progress, and we are constantly measuring. We have prioritized climate action, people, and nature to operationalize sustainability throughout the company. Using these three focus areas, as well as a global governance program, we are scaling our In-Country Value investments and our local partnerships. These drive positive actions in support of the U.N.'s Sustainable Development Goals, and we are doing this with a significant focus on affordable and clean energy to have a greater impact where we live and work.
We are extremely proud of our sustainability mindset, and we have lots of examples for this, of local initiatives from all around the world that we proudly present in our last sustainability impact report, which I would encourage everybody to read. We have also accelerated our journey through technology, innovation, and the right partnerships to take significant steps to reduce Scope 1 and 2 emissions. We have created a comprehensive platform for greenhouse gas emissions that enables us to have the visibility we need to prioritize taking action, so we understand what are the most pressing areas. We are also using our own technologies where we can. For example, using our Celsius Energy installation for our Clamart plant in France, we actually managed to reduce our carbon emissions for heating and cooling of the building by 90%.
We are tapping into green energy sources wherever we can on the planet. Now, here's how we are helping our customers. To provide some context for the industry, when looking at our top 50 customers, 75% of them are committed to carbon emission reduction targets. What is important to remember is that the service industry Scope 3 emissions are actually part of the Scope 1 and 2 emissions of our customers as they consume our products and services. This creates a very unique business opportunity for us and a collaborative mission between us and our customers as we are heading in the same direction, one that is built on the common goal of lowering carbon emissions. In essence, we have tied parts of our success to theirs. This creates a natural alignment on sustainability for us and our customers.
You've seen SLB is already well on the path to offering a comprehensive portfolio of products and services to help our customers with these challenges. Our emissions business, our Transition Technologies and our recently launched sustainability platform are all examples of how we are innovating the industry and helping our customers with the biggest challenges. We've already seen significant success with our Transition Technology portfolio. We know our customers really appreciate the transparency that we bring. With the endorsed technologies going through a rigorous qualification process, this results in being able to accurately quantify emissions reduction during use. While you heard that the portfolio will cross the $1 billion revenue mark next year, another really important fact is that just this year, we can point at around 600,000 tons of avoided CO2 equivalent emissions alone through the selection of Transition Technologies.
This is equivalent to taking around 130,000 cars with internal combustion engines off the road this year, and that impact will obviously only compound. To give you a concrete example from a customer, in Kazakhstan, we have been using our zero flaring well testing and clean up package to avoid unnecessary emissions by eliminating the need to flare hydrocarbons. For KPO, one of our key customers in the region, this service avoided 1.3 million metric tons of CO2 equivalent emissions over the past four years compared to using conventional production boosting techniques. This project was actually so successful that we've just been awarded an additional two year contract to continue that work. Given how new these technologies are, and you heard that we started Transition Technologies just a year ago, these are tremendous results.
I'm also very excited about the recently announced collaboration with Saudi Aramco. Our two companies are developing a sustainability platform that will provide solutions for hard to abate industries. This platform will focus on industries such as ours, oil and gas and chemicals, utilities, cement, steel, and it will allow customers to collect data, to measure it, to report and verify their emissions while evaluating different pathways to decarbonization. This is one of the perfect examples how we weave digital throughout everything we do. Digital is something the industry is still integrating in their operations, but when you combine sustainability goals with digital enablement, you see how it can drive transparency, better measurement, more effective planning, and much more impactful outcomes with integrity, and that is what the industry needs right now. We have an ambitious plan in front of us, and we are already leading it today.
We continue to be one of the highest ranked companies in the industry across the four major rating agencies CDP, MSCI, ISS, and Sustainalytics. Our MSCI rating of A A and our ISS rating of C is the highest ranking anyone in our industry category has achieved. This is a very impressive recognition that confirms our commitment both internally and externally, and one that isn't easy to achieve. We are committed to focusing on areas such as emissions reduction target, board independence, cybersecurity, diversity, governance, and others to maintain and even exceed the current rating. To wrap this all up, I want to leave you with a final thought. We are generating significant momentum and building a more sustainable company at SLB, and we will continue to challenge ourselves to deliver results with lower carbon emissions and elevate our impact through collaboration and strategic partners.
We are taking bold steps with climate action, evolving our portfolio, making new investments, and empowering our local teams to make an impact. I hope you've seen today how our action across our entire company are helping reduce our carbon output and how we are demonstrating how sustainability is integrated within every facet of what we do. We believe that SLB is in a very distinct position to lead the energy transition, and we believe it so much, we've put it at the center of our identity. That's powerful, and that's bold.