From Servers to Software: Energy’s Cloud Pivot

Rescale, SLB and Halliburton expand cloud tools as operators move away from costly licences and in-house computing

8 Apr 2025

A shift towards cloud-based reservoir simulation is changing how US energy companies buy and use critical software, as operators move away from expensive licences and in-house computing towards flexible, usage-based platforms.

Energy producers have traditionally relied on perpetual software licences tied to dedicated hardware, often requiring large upfront investment. That model is now giving way to cloud-native systems that allow companies to scale computing power up or down and pay only for what they use.

Rescale, a US-based provider of cloud high-performance computing, has emerged as a key beneficiary of the shift. In April 2025, the company raised $115mn from investors including Nvidia and Applied Materials. Its platform allows engineers to run complex reservoir and subsurface simulations without owning physical servers, reducing capital costs and shortening project timelines.

Large oilfield services groups are adapting their products to the same trend. SLB has released an updated version of its PIPESIM flow assurance software, designed to reduce cloud storage requirements and improve the movement of data between systems. Halliburton is expanding its DecisionSpace 365 platform, which offers cloud-based access to subsurface modelling tools through subscription plans.

“This isn’t just a tech upgrade, it’s a strategic overhaul,” said a Houston-based energy analyst. “Operators now demand lower costs, faster cycles, and the ability to pivot in real time. Cloud platforms are delivering that.”

The growing use of cloud simulation tools is particularly evident in newer areas such as carbon capture and storage, geothermal energy and unconventional oil and gas, where rapid modelling and frequent updates are central to project economics.
Industry executives say the move to the cloud also reflects broader pressure on energy companies to remain flexible amid volatile commodity prices and tighter capital discipline.

However, some operators remain cautious. Concerns persist around data security, long-term access to proprietary models and the predictability of cloud computing costs. Several companies continue to run a mix of cloud and on-premises systems as they assess risks.

Despite those reservations, adoption is accelerating as software providers refine pricing models and address regulatory and security requirements. As investment continues to flow into cloud-based simulation, digital tools are set to play a larger role in shaping how US energy projects are planned and managed.