The conversation
Driving Transformation: Paal Kibsgaard on Industrial Leadership
Former Schlumberger CEO Paal Kibsgaard details his journey from engineering fields in Saudi Arabia to managing a high-stakes 65,000-person workforce reduction during a massive global oil crisis. He shares his philosophy on modernizing corporate infrastructure during downturns, the hard operational lessons learned from the collapse of modular-construction startup Katerra, and why long-term career success relies entirely on excelling at your current task rather than obsessing over future ambitions.
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Paal Kibsgaard is the former CEO of Schlumberger, one of the world’s largest oilfield service companies. After stepping down, he transitioned to ventures in construction and real estate, focusing on innovation and transformation across industries. From his early days as a petroleum engineer to his tenure as CEO of Schlumberger, one of the world’s largest oilfield service companies, and his ventures into the construction and real estate sectors, Kibsgaard has consistently focused on innovation and creating impactful change. In a candid interview, he shared his experiences, lessons learned, and insights into the evolving challenges and opportunities in industries that shape our world.
Kibsgaard’s story began in the oilfields of Saudi Arabia, where he started as a reservoir engineer.
Paal Kibsgaard
I didn’t sit down in my first job thinking, ‘I want to be CEO.’ You take the job you get, make the most out of it, and leave it in a better state than when you inherited it.
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His commitment to this philosophy of consistently improvement over time and his ability to understand and optimize the roles he held moved him up the ranks at Schlumberger. By 2011, he was named CEO, a role he held until 2019.
His tenure as CEO was marked by both growth and turbulence. The first few years saw high oil prices and rapid expansion, but the industry downturn that followed tested his leadership.
Paal Kibsgaard
The most important thing I did was to stay focused on modernizing and transforming the backbone of the company, even during the downturn.
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This involved integrating various parts of the company and improving its systems and infrastructure to ensure Schlumberger was set up for future success.
One of the toughest decisions during this period was reducing the workforce.
Paal Kibsgaard
We had to reduce the workforce by about 65,000 people over two years. We didn’t do it overnight, but it was necessary to align our costs with activity levels and keep transforming the company.
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Despite these challenges, Schlumberger emerged from the downturn prepared for recovery, thanks to Kibsgaard's outstanding leadership and strategic vision.
Kibsgaard’s leadership approach has always centered on understanding his position and excelling at his given task.
Paal Kibsgaard
When you get a job, it’s about understanding what that job is. It’s not about sitting down and over-focusing on long-term ambitions. The only way to get to tomorrow is to excel today.
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This focus on excelling at what he was doing at the moment, rather than distant goals, combined with his emphasis on teamwork and inclusion, has been a crucial part of his success.
After stepping down from Schlumberger, Kibsgaard transitioned to the construction industry, joining Katerra, a company focused on modular construction and prefabrication. He described the shift as both difficult and eye-opening.
Paal Kibsgaard
The construction industry is archaic in many ways, which means there’s a lot of opportunity for transformation. It’s similar to the oilfield in being project- and site-based, but in construction, you can actually see what you're building, and where you are building is always much closer to home.
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Katerra’s vision was to solve the fragmented nature of the construction industry by bringing its many disconnected parts together. The company sought to streamline the building process with modular designs and prefabricated components to make construction faster, cheaper, and more efficient. However, it faced significant financial and operational difficulties, which were worsened by the COVID-19 pandemic. Although Katerra eventually failed, Kibsgaard’s experience reaffirmed his belief in the industry’s potential for innovation.
Paal Kibsgaard
It’s about doing it capital-light, using the existing resources of the industry but organizing them differently, both in planning in the office and execution on site. The real estate and construction, particularly the residential sector in the U.S., is about the size of the global E&P industry. It’s a massive and highly fragmented industry, and there’s a lot of room for transformation, building on what I’ve learned in the past.
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Reflecting on his career, Kibsgaard shared his perspective on leadership and success.
Paal Kibsgaard
Professionally, it’s about having an impact on what you dedicate your career to and leaving things in a better state than you found them. Personally, it’s about supporting your family, giving your kids the best possible start, and helping them pursue their dreams.
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Asked what advice he would give his younger self, Kibsgaard said, “Maybe I’d tell myself to worry slightly less. I based my career on work ethic, working hard, and being very attentive to detail. Maybe trusting more in the fact that by doing what you’re doing, things generally work out. I’d say relax a little more and trust the process.”
Kibsgaard’s career reflects the power of adaptability, perseverance, and purposeful leadership. Beyond his professional achievements, his story is also about staying grounded and valuing relationships—whether mentoring others, supporting his family, or striving to leave every role better than he found it.