Conference Strikes Theme of Transforming the Industry

Joel Parshall, JPT Features Editor

Major issues and challenges abound for the industry as it looks ahead, such as resource access and deliverability, investment opportunities, the impact of geopolitics, market stability, environmental concerns, evolving business models, and the workforce of the future. With this and more as a backdrop, the 2007 Offshore Technology Conference (OTC) has adopted the theme “Transforming the Industry.” OTC 2007 will be held 30 April to 3 May at Reliant Center in Houston.

Founded in 1969, OTC is the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production, and environmental protection. Attendance at OTC 2006 reached a 24-year high, as 59,236 E&P professionals met to learn about the latest technology for finding and producing the oil and gas the world critically needs. Demand by exhibitors has been so strong that the OTC Board of Directors recently approved the expansion of indoor exhibit space into Reliant Stadium, which is adjacent to Reliant Center. The exhibits will be open during all 4 conference days.

The technical program for OTC 2007 includes almost 50 sessions and the presentation of more than 300 papers. Panel sessions will focus on major topics such as the impact of risk and restriction on international offshore-technology transfer, new offshore construction benchmarks developed in response to Hurricanes Katrina and Rita, and the growing key role independents play in expediting the industry’s production-to-market cycle. There will be industry breakfasts, luncheons, and additional activities taking place before and after daily technical sessions.

Additionally, OTC will present Spotlight on Technology awards to the developers of new, innovative, and proven technologies with broad, significant impact that are helping to transform the industry.

Awards Luncheon

Chad Deaton, Chairman of the Board and Chief Executive Officer (CEO) of Baker Hughes, will be the keynote speaker for the Awards Luncheon on Tuesday, at which the conference will honor outstanding accomplishments of individuals or organizations in the offshore E&P industry with the OTC Distinguished Achievement Award. Presenting the awards will be Arnis Judzis, Executive Vice President of TerraTek and Chairman of the OTC Board.

General Sessions

There will be two general sessions featuring roundtable discussions on important issues for the offshore industry by executives, government officials, and industry experts.

The first General Session, Tuesday afternoon, is “The Petroleum Scene: New Realities Ahead?” Mohammed Barkindo, Acting Secretary General of OPEC, will moderate the discussion, and Hasan Qabazard, Director, Research Div. of OPEC, will keynote the session. Panelists will include Sadek Boussena, former Algerian Minister of Energy and Mines; Arne Walther, Secretary General, Intl. Energy Forum Secretariat; Tarek Hassan Beck, Libya’s Governor to OPEC; Edgard Habib, Chief Economist, Chevron Corp.; Sandrine Dixson-Decleve, Executive Director, Intl. Fuel Quality Center; and Adrian Lajous, President, Petrometrica. The basis of the discussion is the expected continuation of petroleum as the world’s major energy source well into the 21st century. The panel will discuss resources, investments, and supplies; opportunities and potential industry constraints; the importance of the down-stream in supporting market stability; the role of producer/consumer dialogue; and how the petroleum industry should handle new environmental realities.

The second General Session, Wednesday afternoon, is “NOC/IOC/Service Companies: Revisiting the Collaboration Model?” Bill Ramsay, Deputy Executive Director of the Office of Global Energy Dialogue, and Amy Jaffe, the Wallace S. Wilson Fellow in Energy Studies at the Baker Inst. for Public Policy and Associate Director of the Rice U. Energy Program, will moderate a panel that includes Tony Meggs, Vice President, Technology, BP; Jean-Marie Guillermou, Senior Vice President, E&P, Total; Bernard Duroc-Danner, CEO, Weatherford; Ali Al-Jarwan, General Manager, Abu Dhabi Marine Operating Co.; Syanga Abilio, Vice President, Sonangol; Rod Clark, Chief Operating Officer (COO), Baker Hughes; and Olivier Lazare, Vice President, New Business Development, Shell. Backdrop for the discussion consists of two principal issues—the growing imbalance of reserves between the national oil companies (NOCs) and international oil companies (IOCs), and the increased pressure to produce as anticipated fossil fuel demand outstrips supply growth. Discussion will center on the likely evolution, and possible drastic changes, in the traditional business model of NOC collaboration with IOCs and service companies. Subjects open for discussion include production increases by NOCs; technical/management expertise, manpower, and funding related to these industry segments; whether NOCs are more open than IOCs to technical innovations; whether NOCs’ reserves may be opened to IOCs; and whether a mutation of the service industry’s role may occur soon.

Industry Breakfasts

Three industry breakfasts organized by OTC and the U.S. Dept. of Commerce will offer expert views on doing business in the developing regions of Sri Lanka, the Gulf of Guinea, and Arctic Canada, respectively.

The breakfast programs get under way on Tuesday, as officials from Sri Lanka’s Ministry of Petroleum and Board of Investment discuss “Sri Lanka—Exploring New Offshore Oil and Gas Opportunities.”

The Wednesday breakfast program, “The Gulf of Guinea,” features senior officials from the countries in that region and representatives from U.S. energy companies, who will highlight oil and gas prospects in the Gulf of Guinea and the commercial and new investment opportunities in the region’s energy sector.

On Thursday, officials from the Canadian Northern Oil and Gas Directorate and Natl. Energy Board will speak on “The Arctic of Canada—Canada’s Evolving Offshore Oil and Gas Industries.” The Northwest Territories’ (NWTs’) Ministry of Industry, Tourism, and Investment will address commercial investment opportunities in the NWT oil and natural gas sector. Also part of the presentation will be U.S. private sector perspectives on Arctic Canada oil and gas investment, exploration and development opportunities, and environmental issues.

Topical Luncheons

A variety of topical luncheons on Monday, Wednesday, and Thursday will feature leading experts discussing a broad range of subjects dealing with management, implementation, research, and technology-related fields in the offshore industry.

On Monday, Matt Simmons, Chairman, Simmons and Co. Intl., will discuss “A Close Peek Into the Reality of Peak Natural Gas and Oil.” A second program on Monday will be “Meeting the Quest for Dynamic Offshore Drilling in the Energy Frontier,” by Mark Jackson, President and COO, Noble Corp. In other luncheon programs, Nova Scotia Energy Minister Bill Dooks will present “An Update on Nova Scotia’s Petroleum Prospects,” and Expro Intl. Group’s Marketing and Technology Director Trevor Burgess will speak on “Needing the Right Data: Exploration and Well Testing—A Global Market Perspective.”

Wednesday’s agenda includes four luncheon programs. Peter Marshall, Proprietor, Moonshine Hill, MHP Systems Engineering, will discuss “Confessions of an Offshore Technology Geek: Lessons Learned the Hard Way.” Marshall was winner of a 2006 OTC Outstanding Achievement Award. At a second luncheon, Timothy Parker, Senior Vice President, Exploration and Production, Dominion E&P, will speak on “Technical Staffing: Supply and Demand Challenges.” Additional luncheon talks include “Booming Offshore Oil and Gas Construction Business of China Fosters International Cooperation,” by Xizhao Jiang, President, China National Offshore Operating Co. Engineering; and “A Technical Challenge for the Greater Gorgon Project: CO2 Geosequestration,” by Dorine Bosman, head of Technical Services for Shell Development Australia.

On Thursday, Michael Economides, Professor, Cullen College of Engineering, U. of Houston, will discuss “Energy and Geopolitics.” A talk on the emerging trends of the energy evolution cycle by Peter Tertzakian, Chief Energy Economist, ARC Financial Corp., is titled “A Thousand Barrels a Second.” In addition, David Greer, Project Director and Deputy CEO, Sakhalin Energy Investment Co., will speak on “The Sakhalin II Phase 2 Project.”

Focus on Young Professionals

After a successful debut in 2006, a program focusing on the industry’s young professionals, “The Next Wave,” will again be a key part of the OTC agenda. Jeff Spath, President, Reservoir Management, Schlumberger, and Belinda Robinson, CEO, Australian Petroleum Production and Exploration Assn., will serve as program leaders. Included in the program will be a panel discussion, with question-and-answer session, led by professionals of various technical, educational, and managerial backgrounds and experience levels. These individuals will share their insights on meeting the needs of today’s employers, making personal decisions about pursuing advanced education, and the pros and cons of choosing a technical or managerial career path. An added benefit will be roundtable breakout sessions designed to enhance interaction among the attendees through dialogues on important industry topics. Experts from the industry will facilitate more than 20 discussions giving participants an opportunity to network, learn, and share their thoughts with peers from around the world. The goals are to share best practices, brainstorm solutions, discover resources, and examine current issues and trends.