Under the Patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud Crown Prince, Deputy Prime Minister, and Minister of Defense, Kingdom of Saudi Arabia DAY 2 IPTC DAILY 14 JANUARY 2020 THE OFFICIAL SHOW DAILY OF THE INTERNATIONAL PETROLEUM TECHNOLOGY CONFERENCE IPTC Welcomes A New Energy Era John Donnelly, IPTC Daily Editor he 12th International Petroleum TTechnology Conference (IPTC) opened Monday with a distinguished panel offering its outlook for oil and gas markets in the next year and the next decade. IPTC, which is sponsored by four leading oil and gas associations, is being held in Saudi Arabia for the first time. “This is the first interdisciplinary oil and gas conference to be held in Saudi Arabia,” said Mahmoud M. Abdulbaqi, Chairman of the Board of ARGAS and Chairman of the IPTC Board of Directors. The conference is being hosted exclusively by Saudi Aramco. The opening panel included Abdulbaqi; Mohammed Y. Al-Qahtani, Senior Vice President, Upstream, Saudi Aramco; HE Yasir Al-Rumayyan, Chairman of the Board, Saudi Aramco; and HRH Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, Kingdom of Saudi Arabia. Saudi Energy Minister Al-Saud noted the key contribution his country has made to global oil supply stability. Industry Faces A Range of Challenges in New Year John Donnelly, IPTC Daily Editor Geopolitical and oil supply Darren Woods, Chairman and CEO needs a stable oil market, sustainable defended the actions of the OPEC- uncertainty shadow the oil and gas of ExxonMobil; Patrick Pouyanné, supply and demand growth, plus group against critics who said it industry as it enters a new decade, Chairman and CEO of Total; and predictability, and production that undermined free market economics. but its mission must continue to be to Jason Bordoff, Professor at Columbia has little impact on the environment. He said that after the global financial provide the world with a steady flow University and founder of the Center Market volatility doesn’t allow crisis of 2008, cheap credit funded of energy, industry chief executives on Global Energy Policy. They companies to prepare properly, he the shale revolution in the US. That and energy minsters said Monday. discussed a range of issues, including said, because they don’t know if “induced stimulus” led to an oil glut, The opening panel session of IPTC US-Iran tensions, the US election, price swings are temporary or not. which caused the price collapse that included HRH Prince Abdulaziz bin shale supply and OPEC’s response, “Generally, we don’t like volatility,” began in 2014, he said. Salman Al-Saud, Minister of Energy, and the biggest challenges currently he said. That is the goal of OPEC, to Producers had to respond with a Kingdom of Saudi Arabia; HE Shaikh confronting the industry. promote the stability of prices, supply, counter-balance, which led to the Mohammed Bin Khalifa Al Khalifa, Assessing what he wanted to see in and demand, he added. curtailment of supply by OPEC Minister of Oil, Kingdom of Bahrain; the new year, al-Saud said the world Picking up on that theme, al Khalifa members and other large producers EVENT MANAGEMENT SPONSORING SOCIETIES AND ORGANISATION IN KSA CM Licence Number: 19/6739 2 I IPTC DAILY—TUESDAY Assured Ultra-efficient Delivery That’s the Petrofac Difference Combining four decades of engineering, construction and operations know-how with digital technology to future proof our delivery. Visit Petrofac.com and discover why you can trust the Petrofac difference. INTERNATIONAL PETROLEUM TECHNOLOGY CONFERENCE | 3 Assured Al-Qahtani, who is serving as Al-Rumayyan said the oil and gas influencing some banks to back away “offers real solutions with real energy Executive Committee Chairman of industry thinks in terms of decades, from funding oil and gas projects. This to meet real needs” it will last well into this year’s conference, announced which runs up against the notion lack of investment eventually will lead the future, he added. that the conference would return to that the “energy transition” will to a supply shortage that could cause Saudi Energy Minister Al-Saud noted Saudi Arabia in 2 years, with the 2021 occur “from a definitive point A to a oil price spikes in the near future, he the historically important role that conference to be held in Malaysia. definitive point B” and will take place said. Saudi Arabia has played since the “These are exciting times for the at the same time in the same way He acknowledged the need of the discovery of oil there about 80 years Kingdom,” said al-Qahtani, as both everywhere. Instead, he offered what industry to “lighten the carbon ago. The global economic growth Saudi Aramco and the oil and gas he called the “pragmatic narrative” of footprint” through technology and of the past half century, which industry at large face a new decade a transition happening over decades innovation, but it must continue to paved the way for transformative of growing demand but with a need and that there “will be many energy meet the world’s energy needs. The development and lifted many out of Ultra-efficient to lighten the industry’s carbon transitions” at different speeds. industry must never forget its role to poverty, would not have taken place footprint. Aramco is in the midst of an The more narrow narrative is having responsibly supply energy required without the stability of oil supply from initial public offering (IPO), which has negative consequences for the to power the world and sustain Saudi Arabia. n Delivery raised a record USD 29 billion. industry, he added, because it is economies, he said. If the industry That’s the Petrofac Difference Combining four decades of engineering, construction and operations know-how with digital technology to future proof our delivery. Pouyanné, center, speaks about his outlook for the industry while Woods, left, and Bordoff look on. production, and lack of investment. But al-Saud said, “My focus isn’t on such as Russia. “Going forward, all have on markets, al-Saud said, “The recent geopolitical events, which 2020, it’s on 2030,” emphasizing that eyes are on US production,” he said, president can do whatever he wishes. would have caused prices to soar the industry must take the longer adding that another 1 million B/D The US is a strategic partner and has a in the past, have only caused small view and adding that he is confident increase in shale output would weigh big role to play in security.” blips. That is because shale is short- that OPEC will remain the world’s key heavily on prices this year. But he The subject of US politics came cycle production and can act as a producer in the future. n said that all indications are that the up again in a question about the swing supplier when needed, which growth in US shale supply is waning. Democratic candidates for president dampens price volatility. He said that he even worries that who oppose hydraulic fracturing. Total CEO Pouyanné said his company IPTC DAILY there might be an oil scarcity soon Woods said the growth in US shale is moving toward becoming an because of the lack of investment in IPTC Daily is the official show daily supply has provided tremendous energy company rather than just an of the 12th International Petroleum the industry in the past few years. economic benefits for the country, oil and gas company. By 2030 and Technology Conference. Woods said his mantra is to focus on including adding thousands of jobs. 2040, oil will still be important to the fundamentals despite volatile Politicians tend to speak narrowly consumers but renewable energy IPTC Daily Editor price swings or political events. The about issues in a campaign but is no doubt growing. He said John Donnelly oil industry will continue to operate eventually will look “at the bigger discussion about climate change Show Daily Staff in a time cycle that lasts beyond picture” if elected and try to strike a too often focuses just on producers Trent Jacobs, staff writer one year, and that hydrocarbon balance among competing interests. but it is not “a black and white Stephen Whitfield, staff writer demand will grow in the decades The disruption to the economy and debate.” Companies are providing Deborah Quinn Hensel, staff writer to come because of its importance to individuals that banning hydraulic hydrocarbons because there is Rajiv Gopalan, page design to prosperity. The challenge on the fracturing would cause is a “natural demand for them, and politicians David McCoy, page design supply side is to produce as efficiently hedge” against such dramatic change, need to emphasise the complexities Joy Isaiah, marketing as possible and at low cost and “let he added. As for his company, “Our of the energy transition as well as the Published for the International Petroleum the markets take you wherever the plan is to continue to talk about the associated costs. Technology Conference (IPTC). The opinions and content expressed in this publication do markets want to take you.” fundamentals, what is good for the Assessing the biggest challenges industry and for the economy,” he not necessarily reflect the opinions of IPTC Visit Petrofac.com and Asked about US President Donald facing the industry going forward, or its sponsoring organisations. Trump’s decision to launch a drone said. panelists spoke of the daunting discover why you can trust strike against Iran’s top military leader Another positive from the increase in Copyright 2020 International Petroleum climate change goals of the Paris Technology Conference. the Petrofac difference. last week and the impact it could US shale supply, said Bordoff, is that agreement, uncertainty of US 4 I IPTC DAILY—TUESDAY Nasser Satisfied With Aramco IPO, Advocates Climate Strategy John Donnelly, IPTC Daily Editor IPTC Daily interviewed Saudi Aramco challenges our industry faces, and global greenhouse gas emissions; President and Chief Executive Officer we rely on IPTC and its constituent the remaining two-thirds receive very Amin Nasser about the company and societies to continue playing a little attention.