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Results
2019 OTC review Digitalization and automation were key topics in the panel and technical sessions at this year’s Offshore Technology Conference (OTC) as the iconic event celebrated its 50th anniversary. More than 59,000 attendees participated in the conference, which was held 6–9 May in Houston. OTC launched its golden anniversary with a wide-ranging panel discussion on the current viability of the offshore sector and how digitalization will change it in the future. Total’s Energy Outlook 2040 proposes two distinct scenarios of the energy future: a momentum scenario, in which oil demand is dominated by transportation and petrochemicals, and a rupture scenario, which sees a massive shift in public policy and the growth of renewables. Either way, “our industry has a major role to play in climate change issues,” said Arnaud Breuillac, president of exploration and production for Total. The global energy mix is changing, he said, but the question is how rapidly, especially regarding use of electric vehicles and the growth of electrification in developing countries. Given the projected population rise and the fact that 1.5 billion people do not have access to energy now, increased use of natural gas and renewables is the “right approach to stabilize the energy system,” Breuillac said. The 21st century will likely be the “century of electricity,” he added. “It is clear that the pace of change does not lie entirely in our hands,” he said about the use of hydrocarbons in the future, but will be influenced by the public and policymakers as well. For now, Total is pursuing projects on the low end of the cost curve while trying to reduce its carbon footprint from production to customer delivery. Whether the industry should pursue a future of reduced hydrocarbon production and use appears to be a dilemma, said panel moderator Scott Tinker, director of the Bureau of Economic Geology at The University of Texas at Austin. If climate change is the worst problem, then reduced hydrocarbon use could be part of the solution; but if poverty is the globe’s biggest issue, then hydrocarbons are undoubtedly part of the solution. Although the industry “does produce a lot of CO2,” Tinker said, access to readily available and affordable energy also alleviates hunger and provides clothing, shelter, and clean water, and allows access to education, health care, and medical services, among other things. Offering more perspective, Tinker noted that although there is a lot of talk about the growth in wind and power for energy, their use is but a fraction of demand for oil, natural gas, and coal. Over the past several decades, carbon emissions in the US and Europe have been flat to slightly down, while emissions in Asia have grown sharply, he said.
- Asia (0.67)
- North America > United States > Texas > Travis County > Austin (0.24)
- Health, Safety, Environment & Sustainability > Sustainability/Social Responsibility > Sustainable development (1.00)
- Health, Safety, Environment & Sustainability > Environment > Climate change (1.00)
- Facilities Design, Construction and Operation > Offshore Facilities and Subsea Systems (1.00)
- Data Science & Engineering Analytics > Information Management and Systems (1.00)
Conference review The offshore oil and gas sector is beginning to recover 2 years after oil prices bottomed out, which has led to cautious optimism in the sector. At this year’s Offshore Technology Conference, held 30 April–3 May in Houston, that feeling was evident, although there is still a strong emphasis on cost containment and efficiency. This year was the 50th OTC, which has become a bellwether for the health of the offshore industry. Panel sessions, individual talks, and technical sessions focused on a range of topics, including the current state of the industry, reducing costs, breakthrough technologies in a low-oil-price environment, and the growing use of data analytics and digital technologies. More than 61,300 attendees from more than 100 countries gathered at the annual conference. Below are selected highlights from the conference. Offshore Retrospective The 50th edition of OTC kicked off with a distinguished panel representing operators and service companies evaluating the contributions of the past half century. And while the panel took a look back at the significant progress and innovation that has occurred since 1969, they also painted an optimistic view of the offshore sector’s future. The opening ceremony featured remarks from Wafik Beydoun, chairman of the OTC Board of Directors, and panelists Patrick Pouyanné, chairman and CEO, Total; Ryan Lance, chairman and CEO, ConocoPhillips; Jeff Miller, president and CEO, Halliburton; Harry Brekelmans, project and technology director, Royal Dutch Shell; Clay Williams, chairman and CEO, National Oilwell Varco (NOV); and Solange da Silva Guedes, chief exploration and production officer, Petrobras. Speakers emphasized the progress made in the safety of offshore operations as well as the technological innovation that has occurred since the first OTC was held in a small convention hall in Houston that attracted 2,800 attendees. More than 60,000 industry professionals attended last year’s conference. After listing some of his company’s significant offshore developments over the years in Abu Dhabi, Africa, and the North Sea, Total’s Pouyanné expressed optimism about the offshore sector’s continued health, noting that many legacy discoveries are still producing or have led to new ones. “The past also affects the future,” he said. Oil price cycles and technical challenges will continue to be managed. “In our industry, anything is possible and nothing is impossible,” he added. “What makes me very confident for the future of offshore and the deep water industry is its capacity to innovate.” Lance, noting emergence of unconventional onshore output, said offshore projects in the future have to work at the lower end of the oil price boundary. Projects need improved design and efficiency as well as standardization. “Design one, and build many” should be the watchword going forward, he said. The use of data analytics, machine learning, and blockchain all have potential to make the offshore sector more efficient and economic, he added.
- South America (1.00)
- North America > United States > California (0.29)
- Asia > Middle East > Saudi Arabia (0.28)
- (5 more...)
- South America > Suriname > North Atlantic Ocean > Guyana-Suriname Basin (0.99)
- South America > Guyana > North Atlantic Ocean > Guyana-Suriname Basin > Stabroek Block (0.99)
- North America > United States > Gulf of Mexico > Central GOM > East Gulf Coast Tertiary Basin > Green Canyon > Block 826 > Mad Dog Field (0.99)
- (2 more...)
- Information Technology > Artificial Intelligence (0.88)
- Information Technology > Data Science > Data Mining (0.47)
Editor's column Low oil prices have taken a huge toll on exploration and production (E&P) activity, and the decline could lead to production shortfalls in the future. Discoveries of new reserves have now fallen to their lowest level in 60 years as projects are canceled or pushed back due to low prices and company budget and staff cuts. Operators discovered 2.8 billion bbl of crude oil and liquids last year, the lowest volume since 1954, according to a new report by consultancy IHS. Most of the reserves were found in deep water, which take years to bring on to production. Two other recent reports were much-discussed during last month’s Offshore Technology Conference in Houston. Global deepwater spending continues to fall because of the oil price crash, with the Americas and Africa the only bright spots, according to a new study by Douglas-Westwood. A year ago, the consultancy saw 210 potential projects for installation in the next 5 years but now expects only 118 projects to be installed during 2016–2020. E&P capital spending will be led by investments in the Americas and Africa, which combined will account for 87% of expenditures. The development of east Africa’s gas basins and several US Gulf of Mexico plays will keep those centers as deepwater hubs. The Gulf of Mexico projects include Shell’s Appomattox field, its largest floating platform offshore US; Anadarko’s subsea tiebacks at three fields; Chevron’s Jack/St. Malo floating production system; and BP’s Mad Dog phase 2 development. Wood Mackenzie is warning that the steep drop in production could lead to critical shortfalls in the future. It expects the industry to spend USD 40 billion/yr on exploration and appraisal from 2016 to 2018, less than half of what was spent during 2012–2014, and that number could be lower depending on what oil prices do. The consultancy sees a shift to smaller, near-field operations in the immediate future, with the industry eschewing high-dollar complex projects that potentially bring more lucrative output. Even many medium-term discoveries made before the price downfall are being delayed because of company budget cuts. Those factors contribute to its prediction that continued poor exploration results could lead to a 4.5-million-B/D shortfall in the industry meeting demand by 2035, although a lot of variables could change in 19 years. Consultancies are not the only ones worried about coming supply shortfalls. Schlumberger Chief Executive Officer Paal Kibsgaard, speaking to investors about the company’s first quarter earnings, said E&P investment likely will not meet future global energy demand unless something changes. “I think we will need significant increases in E&P investment,” he was quoted as saying. “If you look at new investments that are relatively short cycle, there are two sources of that. It is going to be the conventional land international and it is going to be the unconventional land in North America. …So I think the sources of additional production for 2017 are limited to these items. Beyond that, I think we need a widespread, significant increase in E&P investments to get supply back to where it can meet growing demand.” JPT
- Energy > Oil & Gas > Upstream (1.00)
- Government > Regional Government > Asia Government > Middle East Government (0.37)
Editor's column The future of technology in the global energy industry will be driven by cost pressures, the scope of government regulation, and increased digitization. DNV GL’s Technology Outlook 2025 report, released last month, lists six emerging technologies that it predicts will have a significant impact on the upstream sector over the next decade. While the technologies are not necessarily new to oil and gas, they are likely to be adopted at an accelerated pace and more broadly than currently. The report predicts these technologies will be increasingly in use over the next several years because of economic, regulatory, and environmental factors, and continued strong demand for hydrocarbons. The first technology, fully automated drilling operations, has the potential to improve the speed and safety of drilling operations and greatly reduce costs. But its widespread adoption will require a “complete redesign” of drilling processes in order to gain all of the benefits. It will also require the use of related technologies such as automated drillpipe handling, managed-pressure drilling, single-trip drilling, and better monitoring and diagnostic capabilities. Automated drilling could cut both drilling time and costs by up to 50% compared with conventional operations, the report says. Smart completions, including better monitoring and more precise control of production zones to maximize recovery, should be heavily adopted by the industry. “Low-cost smart completions,” reconfigured without a rig, could potentially boost additional output from complex reservoirs, such as thin oil pay zones. Subsea systems will rely more on monitoring and data analytics to enhance production stability. That will help better predict flow-related problems and ensure continuous flow from the well. Improved monitoring and analytics, with more sensors and higher computing power, will drive simpler field development through the use of longer tie-ins and simpler designs, said Pierre Sames, DNV GL’s group technology and research director. This will improve leak detection, inspection, maintenance, and repair, all contributing to uninterrupted flow and better integrity, he said. Rigless plugging and abandonment could be a particular boon in the North Sea, which has 8,000 wells that need attention. Current practice for plugging and abandonment involves costly permanent plugging, accounting for up to half of the total decommissioning expenses. Plugging without the use of a rig would require that plugging and abandonment be performed with the well tubing in place, according to the report. Autonomous inspection of pipelines and the use of biodegradable polymers for enhanced oil recovery also should be in full operation by 2025. Autonomous underwater vehicles are more efficient than remotely operated vehicles in performing regular pipeline inspection and will be equipped with sonars, cameras, and sensors. Unmanned aerial vehicles will be used for onshore pipelines, but regulations will need to clarify their further use in civil airspace. DNV GL forecasts the world to be consuming up to one-fifth more energy by 2025 than it does now. With operational cost pressures and oil price volatility, there will be a need to drill new wells more efficiently, highlighting the need for such technologies as fully automated drilling and smart completions, Sames said. JPT
- Europe > United Kingdom > North Sea (0.25)
- Europe > Norway > North Sea (0.25)
- Europe > Netherlands > North Sea (0.25)
- (4 more...)
- Energy > Oil & Gas > Upstream (1.00)
- Government > Regional Government > Asia Government > Middle East Government (0.37)
Editor's column The technical challenges of upstream projects have sharply escalated over the past decade. From ultradeepwater to unconventional resource development to harsh environments to water handling, producing oil and gas is becoming more complex and more difficult. An offshoot of this growing complexity is the rising importance of facilities engineers. SPE recognized this trend several years ago when it created the Projects, Facilities, and Construction (PFC) technical discipline to accompany other, perhaps more traditional, association disciplines such as drilling and reservoir description and dynamics. The creation of the PFC technical discipline was followed by expanded SPE programs and services for this sector and now a new publication designed to appeal and foster communication among the professionals of this increasingly important group. Oil and Gas Facilities magazine debuts this month and joins the list of SPE magazines and technical journals highlighting the most significant trends, developments, and technologies in the upstream oil and gas industry. Oil and Gas Facilities will include both in-depth staff-written articles and, unlike other non-SPE publications that might appeal to some segments of the PFC sector, peer-reviewed technical papers featuring clearly vetted case studies and assessments of technology applications. In addition, the magazine will feature columns from leading experts in the discipline, coverage of PFC workshops around the globe, and highlights of new technology. The editorial board, chaired by Ian Ball of INTEC-SEA UK, includes top leaders of the PFC sector. The magazine will be published every other month. As John Walsh, SPE’s technical director of Projects, Facilities, and Construction explains, “Several years ago, developments such as major offshore projects, deep water, and subsea tie-backs provided the justification for the PFC discipline within SPE. Today, new developments have dramatically increased the demands of our discipline— intense IOR/EOR activity, ultradeepwater, subsea processing, unconventional gas, stranded gas, floating LNG, sour hydrocarbons, remote locations, harsh environments, water handling issues, etc. SPE, with guidance from industry leaders, is responding to this greater need for technical information and knowledge sharing in our discipline.” Facilities engineers have certainly grown in stature over the past decade, in part because of the huge sums of money now spent on upstream oil and gas projects. They now have a greater say in how projects are designed and how money is spent, and play a critical role in helping meet health, safety, and environmental standards. Facilities engineering is a broad specialty that encompasses the traditional engineering fields of petroleum, civil, chemical, mechanical, and electrical engineering, as well as the expertise of project planning, execution, and management. It includes offshore projects, deep water, subsea systems, platforms and floating systems, flow assurance, measurement and control, and gas storage. SPE is becoming a natural home for these engineers, and current plans are for more programs and services tailored to this group. Oil and Gas Facilities is just another step in recognizing the key role that this segment has earned in efficiently and safely meeting the world’s energy needs.
Editor's column SPE will launch a new publication in February titled Oil and Gas Facilities. This new bimonthly magazine will cover all aspects of the increasingly important Projects, Facilities, and Construction (PFC) technical discipline. Several years ago, SPE organized many of its activities along six primary technical disciplines, of which PFC was one. And while SPE workshops, conference sessions, study groups, articles in JPT, technical papers, and other SPE outlets have addressed some of the major issues surrounding this sector, it has become clear that the increase in technical complexity and economic importance of this discipline demands even more attention. Facilities engineering is a broad specialty that encompasses all the traditional engineering professions, including petroleum, civil, chemical, mechanical, and electrical engineering, as well as the expertise of project planning, execution, and management. It includes offshore projects, deep water, subsea systems, platforms and floating systems, flow assurance, measurement and control, and gas storage. It was not until the 1950s that facilities engineering began to be recognized as an important factor in the technical and economic success of field development projects. It developed over the next several decades as heavy oil, Arctic, deepwater offshore, high-pressure, and remote projects became more common. Now, new developments are pushing the envelope further, increasing the recognition of facilities engineering as a critical component in operations involving unconventional gas, ultradeepwater developments, sour hydrocarbons, gas to liquids, floating LNG, and IOE/EOR activity. The new magazine, with guidance from leaders in the oil and gas industry, is a response to this greater need for technical information and knowledge exchange in this discipline. Oil and Gas Facilities will focus on the important projects, systems, and technologies of facilities engineering with articles and reports on major PFC-related developments and projects, significant trends, and technical advances. It will replace the peer-reviewed journal SPE Production, Facilities, & Construction, but each issue will feature peer-reviewed technical papers in a special section. Guiding the editorial direction of the magazine will be some of the most distinguished professionals in this sector. The Editorial Board includes Ian Ball, Technology Director, INTECSEA, UK, chairman; John Walsh, Chemical and Process Engineer, Shell Exploration and Production and SPE’s Technical Director for Projects, Facilities, and Construction; Paul Jones, Technology Center Manager, Chevron; Kenneth E. Arnold, Senior Technical Advisor, WorleyParsons; Joseph Lee, Director, Process Solutions Group, Process System Division, Cameron; Howard Duhon, Systems Engineering Manager, Gate LLC; Simon Richards, Senior Facilities Consultant, Procyon Oil and Gas; and Jim Collins, Principal Development Engineer, ConocoPhillips (Peer Review Editor). Oil and Gas Facilities promises to be the industry’s most important periodical serving production, facilities, and construction professionals.
Q&A What is the current energy balance in Thailand for crude oil and for gas? What is the projected future energy balance? Thailand is an energy importer. We can produce about 44% of our total consumption of crude oil and natural gas. Most of our crude oil imports come from the Middle East. Only 120,000 b/d of crude oil was produced indigenously. We also exported 210,000 b/d of refined products because of a surplus in refining capacity. Natural gas was mostly used for electricity generation. About 79% of natural gas was produced domestically while the rest was imported from Myanmar. Energy demand will continue to grow to support our economic growth. In 2011, crude oil and natural gas demand is expected to increase by 3% and 10%, respectively. To meet the increasing energy demand, we are extensively exploring and developing more energy resources, both domestically and internationally. Moreover, Thailand will start importing LNG beginning this year. Renewable energy will also play a more important role to serve our national policy of energy diversification. What is PTTEP’s core exploration and production strategy? PTTEP’s long-term vision is to become a leading Asian exploration and production company with an aspiration to reach production output of 900,000 BOED by 2020. PTTEP will focus on: Sustainable growth through growing aggressively in focused countries, developing floating LNG production, and strategic mergers and acquisitions Asset value maximization by prolonging our production plateau and instituting portfolio management and funding Organization capability enablers with a focus on streamlining business processes, optimizing resource allocations, developing staff’s overall capabilities, and preparing management and key staff for the company’s business expansion What is PTTEP’s crude oil and gas production break-down in Thailand and outside of Thailand? PTTEP has invested in 44 E&P projects in 13 countries, with 19 projects being domestic and 25 projects being overseas. Most of our current production projects are located in Thailand; therefore, in 2010, our petroleum production averaged 300,000 BOED, with a ratio of 80% domestic and 20% international.
- Government > Regional Government > Asia Government > Thailand Government (1.00)
- Energy > Oil & Gas > Upstream (1.00)
- Oceania > Australia > Western Australia > Timor Sea > Bonaparte Basin > Vulcan Basin > PL AC/L8 > Montara Field (0.99)
- Oceania > Australia > Western Australia > Timor Sea > Bonaparte Basin > Vulcan Basin > PL AC/L7 > Montara Field (0.99)
- North America > Canada > Alberta > Athabasca Oil Sands > Western Canada Sedimentary Basin > Alberta Basin > Kai Kos Dehseh Oil Sands Project (0.99)
- (2 more...)
Company Profile Series Editor’s note: This is the latest in a series of profiles of leading operators, including key international and national oil companies around the globe. Although it may be known more for its mining business than its petroleum ventures, BHP Billiton has quietly built an impressive portfolio of large-scale oil and gas upstream projects throughout the world. Its strategy is to continue to undertake massive, complex projects, using a balance sheet that offers a long-term view of its holdings. BHP Billiton Petroleum—one of the core pieces of the BHP Billiton Corporation based in Australia—has exploration, development, production, and marketing activities in more than a dozen countries around the globe, including a significant deepwater position in the Gulf of Mexico, as well as operations in Australia, the UK, Africa, the Middle East, and Asia. Its worldwide oil exploration organization is located in Houston. The company’s core upstream oil and gas philosophy is to strive to be diversified globally while focusing on largely proven basins, such as in the US Gulf of Mexico and Australia. The firm also has a range of promising prospects in the South China Sea, Trinidad and Tobago, Algeria, Pakistan, and Malaysia. BHP Billiton produced 158.6 million BOE in 2010, a 15% increase over 2009 and has posted an 11% compound annual growth rate for output since 2007. Projects in the Gulf of Mexico and Australia contributed largely to the output increase. The firm has had more than 100% reserves replacement the past four years, said J. Michael Yeager, chief executive of BHP Billiton Petroleum. The outlook for production growth this year is flat, however, because of the impact of the drilling moratorium in the Gulf of Mexico brought on by the Macondo disaster. The petroleum sector’s strategy mirrors that of the larger corporation, with a focus on large projects with a long life span. That makes BHP Billiton different from many of its peers that have smaller assets, said Yeager. In 2010, the company spent more than USD 800 million on exploration and USD 2 billion on development. The spending allowed four major projects to come on stream last year, the latest of which was the Pyrenees oilfield development offshore Western Australia. Pyrenees, the Stybarrow FPSO development in Western Australia, and the Neptune and Shenzi tension leg platforms (TLPs) in the deepwater Gulf of Mexico are examples of the company’s large, technically challenging projects in diverse environments, Yeager said. Over the past four years, the company has tripled its upstream acreage and begun its most aggressive drilling campaign to date.
- North America > United States (1.00)
- Oceania > Australia > Western Australia > North West Shelf (0.67)
- Oceania > Australia > Western Australia > North West Shelf > Carnarvon Basin > Exmouth Basin > WA-43-L > Block WA-42-L > Pyrenees Field (0.99)
- Oceania > Australia > Western Australia > North West Shelf > Carnarvon Basin > Exmouth Basin > WA-43-L > Block WA-12-R > Pyrenees Field (0.99)
- Oceania > Australia > Western Australia > North West Shelf > Carnarvon Basin > Exmouth Basin > WA-42-L > Block WA-42-L > Pyrenees Field (0.99)
- (24 more...)
Editor's column As the Deepwater Horizon disaster drags on, the oil and gas industry is trying to offer some perspective around what has become a politically charged incident. During last month’s International Oil and Gas Conference and Exhibition in China in Beijing, the incident, its cause, and its implications came up several times in the hallways and during panel sessions. During the executive plenary session, several top executives offered their thoughts on the accident. The spill will “go down as a very dark moment,” for the industry, said Matthias Bichsel, a member of the Executive Committee of Royal Dutch Shell and director of Projects and Technology for Shell International E&P, adding that the loss of life in the accident was the biggest tragedy. The industry has a strong track record of conducting deepwater operations safely and the processes and the technology are in place to continue that record. “We need to learn what happened, then fix what needs to be fixed,” he said. Mark Albers, senior vice president of ExxonMobil, said it was “premature” for governments to rush toward more regulation because no one is sure exactly what happened yet. The oil and gas industry has drilled 14,000 wells in deep water, including some more challenging than the one that was the source of the accident. The fundamental question for the industry is to find the root causes of the accident and determine if there was something unique about this well that would lead to an adjustment in best practices, he said. Andrew Gould, chairman and chief executive officer of Schlumberger, agreed that it is too early to assess what happened or what needs to be done. But he noted that the industry should work on uniformity of deepwater project planning and contingency planning. There are operators of different sizes operating offshore and the quality of project planning for deepwater projects varies, he said. The industry must “self-discipline” itself or be open to more regulation, he added. One unfortunate aspect of the accident is that it could make it more difficult to attract young people to the industry, Gould said. Behrooz Fattahi, 2010 SPE president, has noted that many SPE members have inquired about the spill. “SPE will have a role to play in addressing technical issues resulting from the accident; however, SPE is not the right organization to deal with a short-term emergency response,” he said in a statement, adding that there already are a large number of qualified people from the industry who are working to resolve the situation. “SPE’s mission is sharing technical knowledge, and our strength is in providing a longer-term response. We help the industry to learn from incidents like this, and will serve an important role in providing a forum for discussions on changes needed in equipment, operating practices, training and other recommendations on how to prevent or reduce the impact of future oil spills.”
- Facilities Design, Construction and Operation > Offshore Facilities and Subsea Systems (1.00)
- Health, Safety, Environment & Sustainability > HSSE & Social Responsibility Management > Contingency planning and emergency response (0.90)
- Management > Professionalism, Training, and Education > Communities of practice (0.71)
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Editor's column The upstream boom may one day come to an end, but it doesn't look like that will happen this year. Forecasts for E&P spending predict another bullish year, with global demand continuing to drive efforts to increase supply, but access to resources and deciding exactly how to spend the money remain challenges. The industry's technical-staffing shortages also may be constraining efforts to increase output. Global E&P expenditures should show another year of double-digit growth this year, according to a Lehman Brothers survey, one of the oldest and most widely followed annual upstream spending reports. The survey of 344 companies found that collective spending will rise 11% to USD 369 billion, the sixth consecutive year of double-digit increases. Excluding North America, spending will increase 16% to USD 267 billion. Some of the big spenders this year will be Total (a 25% increase in upstream spending), BP (up 21%), Shell and Hess (up 15%), and Chevron (up 7%). Other big spenders are predicted to be companies from Russia, the Middle East, and Africa, along with North American independents, which are increasingly looking outside North America for reserves. Similarly, a December survey by Citi Investment Research predicts a 9.3% increase in capital and exploration spending to USD 354 billion. Other upstream sectors also look bright. The offshore oilfield services sector is facing unprecedented levels of business, says Douglas-Westwood, an industry research firm. Companies that normally might have a 6-month backlog are now booking work for 2011, the firm says in its annual forecast. "Virtually the only place where giant fields will be found in future years is in deep water, with Brazil's recent Tupi elephant find testament to that. Douglas-Westwood expects world deepwater production to grow from 6 million BOE/D in 2007 to 11 million BOE/D in 2011," the The World Deepwater Report says. Almost USD 25 billion will be spent annually in deepwater capital expenditure by 2012, representing 30% growth for the 2008–2012 period in comparison with the previous 5 years. That is particularly driving demand for deepwater rigs, floating production systems, and subsea production hardware. "This drive to produce, what is very high-cost oil, from deep water is the oil companies’ response to declining production in offshore continental shelf areas such as the North Sea and Gulf of Mexico" as well as the lack of access to onshore reserves controlled by national oil companies, the report said. The promise of Arctic waters, with estimates of up to 300 billion BOE, has resulted in a "great subsea land claim" involving Russia, Canada, and the US, the report says. Companies may soon be struggling to keep up with global demand growth, fueled by the rapidly growing economies of China and India. Energy growth in those two countries seems to have led to the rise in worldwide energy consumption the past few years and the resultant rise in oil prices to near USD 100/bbl. Several other challenges appear on the horizon beyond the unprecedented demand growth in Asia. The issue of climate change will almost certainly affect government energy policies over the next several years. And the relationship between international oil companies and national oil companies and what that means for access to reserves and speed of project development will certainly come into play. Perhaps the most critical issue to address is the looming retirements of industry staff in the coming years and the industry's ability to find, train, and retain talent.
- Europe > Russia (0.46)
- Asia > Russia (0.46)
- Europe > United Kingdom > North Sea (0.25)
- (4 more...)