Schneider Electric's $2 billion acquisition of Telvent has received a lot of media and analyst coverage (IDC Energy Insights included) relative to the smart grid market. However, lost in all of this coverage are the implications this acquisition has for the oil & gas industry. Telvent's current business includes products and services across utilities, transportation, agriculture and oil & gas markets. In the oil & gas industry, the company's solutions are primarily in the
Telvent's oil & gas solutions are in three primary areas:
- Energy trading - DTN ProphetX, a market data and analytics solution used by key customers including Anadarko Petroleum, Kinder Morgan Energy Partners and Suez Energy
- Gas pipelines - Telvent's Gas Suite which includes SCADA, modeling and simulation, forecasting, measurement, accounting and reporting applications
- Oil - Telvent has a broad range of software applications for refiners, pipeline and terminal operators, and marketers including some of the same capabilities offered to gas pipeline operators
These solutions complement Schneider Electric's industrial power management, automation and security capabilities which are already used by many oil & gas companies.
Another complementary aspect of the acquisition is in geographic coverage. Telvent's oil & gas presence is strongest in North America while Schneider Electric's oil & gas presence is strongest in Asia, Eastern Europe, Middle East and Africa. There is clearly an opportunity for cross selling among existing Telvent and Schneider Electric oil & gas customers.
By doubling its number of software professionals and adding a portfolio of software applications to its offerings Schneider Electric may not be quite the heavyweight in oil & gas as it is in smart grid, but it is certainly raising its profile and becoming a more competitive player.