ATCE Sessions Tackle Contemporary Challenges Facing Industry

Abstract

The 2005 SPE Annual Technical Conference and Exhibition (ATCE), held 10–12 October in Dallas, covered a broad range of oil and gas industry trends and topics, from the future of R&D spending to the role of gas in meeting global hydrocarbons demand to the latest technologies designed to boost recovery. The conference featured technical sessions with more than 430 papers on innovative technologies, case studies, and best practices and an extensive exhibition with more than 400 companies. The Opening General Session examined “The Global Natural Gas Business in 2015” and brought together a distinguished panel to discuss global supply and demand scenarios, infrastructure and market needs, and technology needs. Panel moderator Michael Economides, a professor at the U. of Houston and Chief Technology Officer of the Texas Energy Center, noted that natural gas will play an increasingly larger role in meeting global energy demand over the next 20 years. Demand for liquefied natural gas (LNG) will be particularly strong in the U.S., he said, which is why firms are rushing to build LNG facilities. James Ball, President and Chief Mentor of Gas Strategies Consulting, outlined gas market development and trends. “Connecting markets, delivering capacity, and supply remain the greatest tasks,” he said. The world’s three great market regions—North America, Asia, and Europe—are no longer isolated from one another. “A new concept of gas geopolitics is emerging, and it is very different from the geopolitics of oil,” he said. Many gas markets are in a state of transition. Middle East LNG exports will increasingly head west by 2010, he predicted. In the Asia Pacific region, Japan, Korea, and Taiwan will remain major LNG-consuming centers, and India has potential for market growth. One issue of concern in North America, particularly in light of recent hurricanes, is whether terminal capacity is too concentrated in the U.S. Gulf Coast. George Verberg, President of the Intl. Gas Union, said that global gas demand would rise to 2030, which is why so much investment is occurring in infrastructure now. “You should not be surprised if natural gas prices go through the roof,” he added. Currently, the world’s gas markets are not adequately interconnected, which is where LNG will find a niche. Verberg pointed out that the Intl. Energy Agency warns of a shortfall in energy investment, and that is complicated by the fact that state-owned companies own two-thirds of commercial gas reserves. In addition, many international oil companies are spending billions of dollars buying back their stock shares rather than investing in energy. “Security of supply will be enhanced by LNG, but it will take more investment to get things done,” he said. Linda Cook, Executive Director of Gas and Power for Shell, said her company forecasts that natural gas demand will grow 3% per year over the next 15 years and that demand for LNG will grow 8–10% per year. “There is much more gas to find and develop. The challenge for all of us is to maximize recovery from existing resources and lower the cost of developing new ones, conventional and unconventional,” she said. In south Texas, where she first worked, “wave after wave of new technology” in seismic, drilling, and completions has extended recovery from low-permeability, high-pressure/high-temperature reservoirs.