Conference Review 2014
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CoNfErENCE ReviEw 2014 The world’s premier conference on the energy future Energy and the New Global Competition www.ceraweek.com Ben Bernanke, Chairman, Ernest Moniz, Diezani Alison-Madueke, US Federal Reserve System US Secretary Minister of Petroleum Resources, (2006-2014) of Energy Nigeria, Alternate President, OPEC John Watson, Joe Kaeser, Christophe de Margerie, Chairman & CEO, President & CEO, Chairman & CEO, Chevron Corporation Siemens AG TOTAL S. A. Emilio Lozoya, Lisa Murkowski, US Senator, State of Alaska, Chief Executive Ranking Member, Senate Energy Committee Officer, Pemex with Daniel Yergin Mission Statement “... [offering] a compre- hensive and integrated IHS Energy CERAWEEk® 2014 — IHS Energy’s 33rd annual executive global framework for conference — “Energy and the New Global Competition,” focused on the new global realities resulting from the unconventional oil and gas revolution, understanding what’s regulatory uncertainties, emerging technologies, market volatility, electric ahead on the energy power restructuring, environmental considerations, and the emerging cyber threats facing companies and countries. landscape ... and the IHS Energy CERAWEEk annually offers a comprehensive and integrated implications for strategy, global framework for understanding what’s ahead on the energy landscape investment, and — markets, technology, geopolitics, environment — and the implications for strategy, investment, and leadership. It provides a combination of leadership.” presentations by senior energy officials, thought leaders, and IHS experts —IHSEnergyCERAWEEkMission from across the energy spectrum and the globe. We also foster interactive discussion and dialogue among participants, over 3,000 senior executives, officials, and experts from over 50 countries. Gina McCarthy, Administrator, US Environmental Protection Agency Daniel Yergin James Rosenfield Lynn Good, IHS Energy CERAWeek IHS Energy CERAWeek President & CEO, Duke Energy Chairman Co-Chairman IHSCERAWEEk2014ConferenceReview 1 “Energy is key to who we are as a nation.” —Lisa Murkowski, USSenator,Alaska US Energy Policy Crossroads Lisa Murkowski, US Senator from Alaska and Ranking Member of the Senate Energy Committee, gave the Monday opening keynote address. Senator Murkowski highlighted the importance of acting quickly to take advantage of America’s newfound energy assets, including crude oil exports. D (A) Lisa Murkowski Economic and (B) Zbyszko Tabernacki, Richard Haass, and Nariman Behravesh Geopolitical outlook A (C) Emilio Lozoya (D) IHS President & CEO Scott Key opening Nariman Behravesh, Chief Economist Mexico’s CERAWEEk 2014 for IHS, and Richard Haass, President of Energy future the Council on Foreign Relations, laid out the key economic and geopolitical forces IHS Vice Chairman Daniel Yergin opened reshaping the global landscape. The session Monday’s keynote dinner session by was chaired by Vice Zbyszko Tabernacki, welcoming Pemex Chief Executive Emilio President of Economics & Country for IHS. Lozoya to IHS Energy CERAWEEk. Mr. The IHS Energy Watch featured two panels Lozoya outlined the implications across the of IHS experts discussing energy markets in entire value chain of opening Mexico’s oil transition and regions in which geopolitics sector. He discussed the primary drivers will affect energy in 2014 and beyond. of Mexico’s energy sector liberalization, citing declining crude oil production and high electricity costs. Mr. Lozoya noted that the main impact of the reform would be to substantially increase upstream investment. New opportunities also will emerge for midstream and downstream infrastructure. B c ConferenceReview 3 Partner/Member Leadership Circle Program at IHS Energy cERAWEEk 2014 The Leadership Circle, part of the IHS Energy CERAWEEk Partner/Member Program, comprises invitation-only senior level dialogues centered on core professional communities. Four concurrent Summits were held on • Upstream Oil and Gas • Global Gas • African Energy • Upstream Technology and Innovation Sessions provided focused, highly interactive, off-the-record discussion on key issues shaping the energy future. Participation in the program allows access A to Partner Suites and Member Lounges. (A) Upstream Technology (D) Global Gas Summit, and Innovation Summit Rob Franklin, President, (B) Africa Energy Summit ExxonMobil Gas & Power Marketing Company (C) Africa Energy Summit Co-Chairs: Bob Fryklund, (E) Upstream Oil & Gas Daniel Yergin, and Summit, Co-Chair, Jerry Dan Berkove Kepes B c D E 4 IHSEnergyCERAWEEk2014 A B (A) Africa Energy Summit, (C) Africa Energy Summit, (E) Upstream Oil and Gas Timothy Okon, Executive Irene Muloni, Minister Summit, Lee M. Tillman, Director, Strategy, Nigerian of Energy & Minerals President & CEO, Marathon National Petroleum Development, Uganda Oil Corporation c Corporation (NNPC) (D) Africa Energy Summit, (F) Africa Energy Summit, (B) Africa Energy Summit, Francis D. Cook, Chair, The Tewodros Ashenafi, Salvador Namburete, Ballard Group LLC Chairman & CEO, Minister of Energy, SouthWest Energy, James Mozambique Rosenfield, IHS Energy CERAWEEk Co-Chairman D E f ConferenceReview 5 Energy, Commodities, and the Global Economy Oil IHS Energy CERAWEEk Opening and keynote Addresses were delivered by John Watson, Chairman and CEO of Chevron Corporation, followed by Andrew Mackenzie, Chief Executive Officer of BHP Billiton. Mr. Watson discussed the enormous changes that have taken place in the energy industry over the past 10 years. He addressed some of the major investment and policy challenges currently facing the industry, such as the search for stable investment environments and returns that benefit companies and the world’s growing middle class. Mr. Mackenzie discussed rising global Andrew MacKenzie energy demand and the need to increase access to electricity in emerging economies. Ministerial Address Fossil fuels will continue to supply the vast “To have significant majority of the world’s energy mix. Noting The Minister of Petroleum Resources for impact on world oil, that the energy industry should increase Nigeria and Alternate President of OPEC, efforts to reduce carbon emissions, Mr. Diezani Alison-Madueke, outlined solutions to these Mackenzie stated that greater energy issues facing the oil industry in developing myriad challenges security for the planet and its people is economies and the need for international achievable while also adapting to climate cooperation in solving the problems of theft must be initiated change. and piracy. She emphasized the importance of allowing natural resources to benefit the more than a decade local economy and improve the standard of in advance. Therefore, living for the whole population. the time to act is now.” —Diezani Alison- Madueke, Ministerof PetroleumResources,Nigeria, AlternatePresident,OPEC (A) John Watson (B) Diezani Alison-Madueke A B 6 IHSEnergyCERAWEEk2014 Strategic Dialogues Strategic Dialogue sessions included a wide range of topics: • Oil Expert Discussion Tables • Energy Innovation Pioneers • Changing Fortunes: Impact of Unconventional Oil and Gas Production on the North American Petrochemical Industry A • The Future of Canadian Crude and LNG - A Dialogue with Minister Joe Oliver Strategic DIALOGUE TightOilNewFrontiers:NorthAmericaandBeyond • Latin America Upstream Poised for Change? • Prospects for Tight Oil in Russia • Future of Upstream Cost: Strategies Operators Can Adopt to Mitigate Risk • Setting the Pace: What’s Ahead for Asian Demand and Supply • Journeys in Operational Excellence: The Leadership Challenge • Finance in the Upstream Industry • Gas and Oil: Competing for Transport Demand • Pipes, Trains, and Barges: The Transformation of North American Oil Logistics B • Tight Oil New Frontiers: North America and Beyond Strategic DIALOGUE • Geography and Refining: How Location Shapes E&PStrategies:NewChallenges,NewBusinessModels Competitive Position • E&P Strategies: New Challenges, New Business Models (A) Tim Probert, Strategic • Oil Market Outlook in a Competitive World Advisor to the CEO, Halliburton; Robert Ryan, • The Middle East at a Crossroads: Oil Geopolitics Jr., Vice President, Global and the New Realities Exploration, Chevron Upstream; Gaurdie • Operating in a World of Change: Mitigating Risk Banister, President & CEO, and Maximizing Performance Aera Energy LLC; Pete Stark, Senior Research Director & Advisor, IHS; Stephen Trammel (Chair), Director, Energy Technical Energy Dialogue Unconventionals, IHS Energy IHS Vice Chairman Daniel Yergin spoke with (B) Bruno Chabas, Chief christophe de Margerie, Chairman and CEO of Executive Officer, SBM Total S.A. Mr. de Margerie identified cost control Offshore N.V.; Patrick Schorn, President, as the main challenge of 2014, and the need for Operations & Integration, Schlumberger; Lars oil and gas companies to cooperate to decrease Christian Bacher, costs. He stated that oil and gas will continue to Executive Vice President Development & Production, play a significant role in the energy mix and also that International, Statoil; renewables are gaining importance, noting Total’s Susan Farrell (Chair), Vice President, Upstream, IHS; investment in a solar company. Mr. de Margerie said Yves-Louis Darricarrère, (speaking) President, that Total is looking worldwide for shale gas, despite Upstream, Total S.A. whatever France does. Christophe de Margerie ConferenceReview 7 Crisis in Ukraine: New Reality for Geopolitics and Energy? Oil A timely panel on the crisis in Ukraine was chaired by Daniel Yergin. Joining him were Thane