Growing World Official Publication of the 21St World Petroleum Congress AF Aviso Pacific Rusia Doble Pag
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RESpoNSIBLY ENERGISING A GROWING WORLD OFFICIAL PUBLICATION OF THE 21ST WORLD PETROLEUM CONGRESS AF Aviso Pacific Rusia Doble pag. 44x29.7cm cv.pdf 1 4/25/14 12:28 PM AF Aviso Pacific Rusia Doble pag. 44x29.7cm cv.pdf 1 4/25/14 12:28 PM 23.05.2014 17:13 (QUADRI-tx vecto) flux: PDF-1.3-Q-300dpi-v-X1a2001-fogra39 OFFICIAL PUBLICATION OF THE 21ST WORLD PETROLEUM CONGRESS www.world-petroleum.org Produced and published by Victory House, 99-101 Regent Street, London W1B 4EZ, United Kingdom Tel: +44 (20) 7440 3500 • Fax: +44 (20) 7440 3545 • Email: [email protected] www.firstmagazine.com Editor David Buchan obe Managing Editors Dr Pierce Riemer, Ulrike Von Lonski (World Petroleum Council) Chairman and Founder Rupert Goodman dl Chairman, Advisory Council Rt Hon Lord Hurd of Westwell ch cbe pc Chief Operating Officer Eamonn Daly, Executive Publisher Alastair Harris Non-Executive Directors Timothy Bunting, Hon Alexander Hambro Regional Publisher Declan Hartnett Head of Special Projects Waqās Ahmed Consultant, Public Affairs Lord Cormack fsa dl Design and Production Jon Mark Deane Marketing Administrator Chris Cammack PA – Chairman’s Office Hilary Winstanly Editorial Consultant Jonathan Gregson Secretariat Gil Pearson Senior Staff Writer Nicholas Lyne Special Advisor, China Lord Powell of Bayswater kcmg Special Advisor, Russia Sir Andrew Wood gcmg Special Advisor, Latin America Jacques Arnold dl Special Advisor, Global Issues Professor Victor Bulmer-Thomas cmg obe ISBN: 978-0-9546409-6-5 World Petroleum is composed of the opinion and ideas of leading business and political figures. All information in this publication is verified to the best of the author’s and publisher’s ability, but no responsibility can be accepted for loss arising from decisions based on this material. Where opinion is expressed, it is that of the authors. The views expressed and the data contained in this publication are not necessarily those held or agreed by World Petroleum or the World Petroleum Council. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Colour transparencies or manuscripts submitted to the magazine are sent at owners’ risk; neither the company nor its agents accept any liability for loss or damage. Copyright 2014, FIRST/World Petroleum. All rights to World Petroleum are vested in FIRST. Contents Foreword and Introduction Welcome to the Official 21st WPC Congress Publication! 13 Renato Bertani President, World Petroleum Council The ‘Petroleum Olympics’ return to Moscow 15 Dr Pierce Riemer Director General, World Petroleum Council WPC Timeline 1933-2014 16 Strategies and Leadership How technology led to tectonic shifts in oil and gas supply 20 Daniel Yergin Vice-Chairman, IHS and Pulitzer Prize-winning author Unlocking opportunity with innovation and cooperation 24 Rex Tillerson Chairman and Chief Executive Officer, Exxon Mobil Corporation Developing new technologies to meet expanding demand 26 Bob Dudley Chief Executive Officer, BP US unconventional output redraws the global energy map 28 Maria van der Hoeven Executive Director, International Energy Agency Energy security is vital for producers as well as consumers 30 Abdalla Salem El-Badri Secretary General, OPEC Unconventionals add new dimension to dialogue 33 Aldo Flores-Quiroga Secretary General, International Energy Forum A helping hand in developing Africa’s energy resources 36 Mark Simmonds Minister of State for Africa, Foreign & Commonwealth Office, UK Exploration and Production Is a shale revolution possible in Russia? 44 Vagit Alekperov President, LUKOIL Mexico opens up energy sector and frees PEMEX to change 48 Emilio Lozoya Austin Director General, PEMEX Fiscal and cultural barriers to raising recovery in Russia 52 Ildar Davletshin Lead Analyst, Oil and Gas, Renaissance Capital Maximising ultimate recovery from unconventional reserves 54 Jeff Miller Chief Operating Officer, Halliburton Responsibly Energising a Growing World 7 We provide energy for the world to create, collaborate and innovate — today and for the future For 80 years, Saudi Aramco has been the world’s reliable supplier of energy. Today, we continue to stabilize the world’s energy markets. Saudi Aramco constantly generates opportunities to create a more prosperous, cleaner and energized world. At Saudi Aramco, we do so much more than provide energy to the world. We grow new businesses, fuel the economy, drive innovation and create opportunities for all. www.saudiaramco.com Contents continued High hopes for Angola’s pre-salt potential 56 Paulino Jerónimo Vice-President, Angolan National Committee of WPC and Executive Vice-President, Sonangol Changing the world: America’s tight oil revolution 58 Harold Hamm Chairman and Chief Executive Officer, Continental Resources Making the most of what’s left in the North Sea 60 Sir Ian Wood Former Chief Executive Officer and Chairman, Wood Group Refining and Petrochemicals The global refining industry adapts to new realities 64 Toril Bosoni Oil Industry and Markets Division, International Energy Agency A Renaissance ‘made in the USA’ 67 Charles T. Drevna President, American Fuel & Petrochemical Manufacturers Gulf refiners expand capacity and opportunity 70 Bassam Fattouh Director, Oxford Institute for Energy Studies Prospects and problems facing European oil refiners 74 Pedro Miras Salamanca Chairman, CORES, Chairman, IEA Emergency Group and Chairman, Spanish National Committee of WPC India leads Asia in exports of petroleum products 76 Nishi Vasudeva Chairman and Managing Director, Hindustan Petroleum Corporation Biofuels and oil: More than just competitors 80 Luiz Augusto Horta Nogueira UNIFEI, Brazil and Ernani Filgueiras de Carvalho IBP, Brazil Natural Gas Supply and Demand Global gas prices: A random walk or inevitable convergence? 84 Howard V. Rogers Director, Gas Research Programme, Oxford Institute for Energy Studies Towards a gas-fired era 88 Dr Mohammed bin Saleh Al-Sada Minister of Energy and Industry of the State of Qatar LNG to grow twice as fast as overall demand for gas 90 Steve Hill President, Global Energy Marketing and Shipping, BG Group Australian LNG floats to the top 92 Peter Coleman Chief Executive Officer and Managing Director, Woodside Energy The EU takes an option on developing shale gas 96 Dafydd ab Iago Brussels Correspondent, Argus Media Group Natural gas engines hit the roads of North America 98 David Demers Chief Executive Officer, Westport Responsibly Energising a Growing World 9 Our people thrive on your technical challenges. Scientific curiosity and technical innovation have been part of the Schlumberger culture for more than 80 years. We recruit the best students and talented professionals from around the world and advance their technical knowledge and skills through national and international experience. With 125 research, engineering, and manufacturing centers located in 15 countries, our goal is to continually deliver new technology to solve customers’ complex reservoir challenges. Find out more at slb.com © 2014 Schlumberger. 14-OF-0163 Contents continued Sustainability Preparing and promoting the energy transition 102 Christophe de Margerie Chairman and Chief Executive Officer, Total Make a start to climate action by cutting flaring 104 Rachel Kyte Vice President & Special Envoy, Climate Change, World Bank Group Is the future of natural gas leaking away? 108 Laszlo Varro Head of Gas, Coal and Power Markets Division, International Energy Agency Balance of power in Russian partnerships 110 James Henderson Oxford Institute for Energy Studies and Alastair Ferguson Former Head of Gas, TNK-BP Realising Africa’s full oil and gas potential 114 Dr Donald Kaberuka President, African Development Bank Energy and development: A rallying call to action 118 Suleiman J. Al-Herbish Director-General, OPEC Fund for International Development (OFID) Local content rules: From compliance to shared value 120 H. Sola Oyinlola Chairman, Africa & Global Head of Sustainability, Schlumberger Developing local industry: The Kazakh case 123 Dr József Tóth Senior Vice President, World Petroleum Council Using petroleum wealth to diversify the Kazakh economy 124 Umirzak Shukeyev Chief Executive Officer, Samruk-Kazyna Managing the Industry Innovative financing for upstream oil and gas 128 John Martin Managing Director, Global Energy, Standard Chartered Bank Private Equity: Working hand in hand with oil and gas 132 Will Honeybourne Managing Director, First Reserve Fuelling the oil and gas industry with innovation 135 Olivier Appert Chief Executive Officer, IFP Energies nouvelles The human challenge in the oil and gas industry 138 Milton Costa Filho Secretary General, Brazilian Institute of Petroleum, Gas and Biofuels (IBP) Fostering talents for the future with a stress on field practice 140 Grateful aknowledgements to Professor Zhang Laibin President, China University of Petroleum-Beijing Coping with cycles in educational enrolment 142 Professor Daniel Hill Department Head, Petroleum Engineering at Texas A&M University Preparing specialists for the future 144 Professor Anatoly Zolotukhin Gubkin Russian State University of Oil And Gas Responsibly Energising a Growing World 11 Foreword Welcome to the Official 21st WPC Congress Publication! By Renato Bertani President, World Petroleum Council ollowing three years of planning, organising delivering reliable, affordable and sustainable and sheer hard work we are now here energy to all around the world. to celebrate the 21st World Petroleum By sharing innovative ideas