Major International Oil Companies Research Articles

An Ensemble Multilabel-Based Analysis of Price Changes Among Listed Central and Eastern European Oil Companies

ABSTRACT While several comparative analyses between major international oil companies are widely available, the same cannot be said about oil companies from Central and Eastern Europe. The present study uses a power-set multilabel approach to analyze changes in the Romanian oil company SNP; stock prices in connection with its regional peers. The multilabel approach uses several base classifiers to analyze the data and a decision tree to choose among them for test purposes. This approach has more predictive power with respect to the area under the receiver operating characteristic ROC curve performance indicator and can be used to analyze other types of data.

The Effects and Driving Factors of Low-Carbon Transition of International Oil Companies: Evidence from a Super-SBM Model

As the main source of energy supply and carbon emissions, the oil and gas industry has entered the comprehensive low-carbon transition stage driven by various factors. Since different oil companies possess distinct understandings of transition paths, the effect of low carbon transition varies greatly. Obviously, it is necessary to evaluate the performance of low-carbon transitions within the oil and gas industry. Therefore, in this paper, 10 major international oil companies are taken as examples, and a super-efficiency slack-based measurement (super-SBM) model is applied in the present study to analyze the efficiency of low-carbon transitions. Furthermore, the logarithmic mean Divisia index (LMDI) is used to decompose the driving factors of carbon emissions and analyze their impact on the low-carbon transition of international oil companies. The obtained results reveal that although major oil companies have taken different measures in low-carbon transition and achieved a year-on-year reduction in carbon emissions, from the perspective of the efficiency of the entire production and operation process, these oil companies are inefficient in carbon emissions and need to adopt more effective low-carbon transition strategies; Moreover, after the further decomposition of the carbon emission driving factors of the 10 companies, it is found that improving the energy consumption intensity and development level of oil companies can effectively improve the effect of low-carbon transition of international oil companies. Drawing on the above findings, this paper puts forward suggestions for the low-carbon transition of energy companies, thus providing theoretical support and guidance for energy companies in different countries to implement low-carbon transition and green development strategies.

Analysis of the world deepwater oil and gas exploration situation

The global trends in deepwater oil and gas exploration, characteristics of deepwater oil and gas discovery, and layout of deepwater oil and gas exploration business by seven major international oil companies are systematically analyzed using commercial databases (e.g. S&P Global and Rystad) and public information of oil companies. The deepwater area is currently the most important domain for global oil and gas exploration and discovery, with the most discoveries and reserves in passive continental margin basins. The deepwater discoveries have the greatest contribution to the total newly discovered oil and gas reserves in the sea areas, with an increasing number of lithological reservoirs discovered, and oil and gas discoveries mainly distributed in the Mesozoic–Cenozoic. The seven major international oil companies are widely active in various aspects of deepwater oil and gas exploration and development, and play a leading role. Based on years of theoretical understanding of global oil and gas geology and resource evaluation, it is proposed that favorable deepwater exploration areas in the future will mainly focus on three major areas: the Atlantic coast, the Indian Ocean periphery, and the Arctic Ocean periphery. Six suggestions are put forward for expanding overseas deepwater oil and gas exploration business: first, expand the sources for obtaining multi-user seismic data and improve the scientific selection of deepwater exploration areas; second, increase efforts to obtain deepwater exploration projects in key areas; third, adopt various methods to access into/exit from resource licenses flexibly; fourth, acquire licenses with large equity and operate in “dual-exploration” model; fifth, strengthen cooperation with leading international oil companies in deepwater technology; and sixth, improve business operation capabilities and gradually transform from “non-operators” to “operators”.

Regulating corporate social responsibility in energy and extractive industries: The case of international oil companies in a developing country

Corporate Social Responsibility (CSR) of business enterprises to reduce and redress the adverse impacts of their operations on the environment and local communities is a controversial topic, especially in developing countries. Drawing lessons from the Kurdistan Region of Iraq (KRI), this article aims to know the role of laws and regulations at the local level in promoting the practice of CSR in energy and extractive industries. The research also seeks to know to what extent International Oil Companies (IOCs) have considered social and environmental problems in the communities where they operate. To achieve these aims, an online survey questionnaire was conducted with major IOCs in the Kurdistan region to know their perspectives on CSR and the scope and extent of their legal obligations in this regard. Then, we analysed annual reports, social responsibility reports, and other publicly available documents to support our arguments and investigate the issue deeply. The article found that while there are broad legal provisions relating to CSR with respect to social and environmental protection, enforcement of such legal requirements remains the main challenge in adapting CSR in developing countries, including the KRI. The results revealed that CSR had been used as a mask by the Kurdistan Regional Government (KRG) to convince the public, opposition parties, and the federal government regarding the transparency and legitimacy of KRG's oil and gas policy in the region. On the other hand, the IOCs highlighted CSR in their reports to convince their shareholders and enhance their reputation. However, their actual contribution to the Kurdistan region's social and environmental condition is minimal.

A historical overview of the evolution of the oil pricing stages for the period (1859-2020)

Oil as an international strategic commodity, its prices have gone through many changes and developments historically in the oil markets since the beginning of its circulation until now, which has been reflected on the economic, political and social conditions...etc. in the countries of the world. Therefore, countries are interested in how to price it in international markets. This research deals with a theoretical analysis of the historical development of oil prices and the stages of its pricing for the period 18592020- AD. The research aims to show the role of international oil companies and the Organization of Petroleum Exporting Countries in its pricing, and the researchers reached many results, the most important of which are: that oil prices have undergone many changes since the beginning until now And the pricing process of crude oil in its early stages depended on the declared prices due to the complete control of the international oil companies over the oil industry Oil prices and how they are priced have taken on a monopolistic character, while the producing countries did not have any role in determining its prices until the beginning of the seventies of the last century as a result of its monopoly by the major international oil companies. The establishment of the Organization of the Petroleum Exporting Countries and its interference in the oil market helped reduction the dominance of the international oil companies that monopolize the oil market.

Research on the Low-Carbon Transformation Path of Shell Oil Company

At present, global warming has aroused widespread attention, and it is recognized that the greenhouse gas produced by burning fossil energy is one of the main factors affecting global temperature. Statistics suggest that the global temperature has increased significantly in recent years, and the average temperature in the Arctic has increased by more than 1.6 ℃ in the 21st century. In order to meet this challenge, the Paris Agreement on climate change has officially entered into force, proposing to achieve a peak in global greenhouse gas emissions as soon as possible, and to reduce global greenhouse gas emissions to 40 billion tons by 2030. Corresponding to the trend of green and low-carbon development, the major international oil companies have put forward new and targeted strategies.

Showpiece City: How Architecture Made Dubai

Showpiece City: How Architecture Made Dubai

Improving the Joint Venture Relationship and Working Culture in the Nigeria Oil & Gas Industry

The focus of this research is to investigate the working culture and the relationship between joint venture (JV) partners in the Nigerian oil industry and its impact on JV project performance. The major international oil companies (IOC) having JV with the Nigeria National Petroleum Company (NNPC) in Nigeria are ExxonMobil, Royal Dutch Shell, Total, Chevron, and ENI. An organizational working culture can be said to be the organization’s belief system, thought processes, the attitude of the employees, their ideologies, and the organizational principles of doing things. The research methodology used is a qualitative questionnaire based on a systematic random sampling of targeted participants both in and out of the Nigerian oil and gas industry. The research analyzes the root cause of the inefficiency experienced in the Nigerian oil industry, which is responsible for JV project delays, recent divestment by the IOCs, frequent community-related work stoppages at JV project sites, sabotage of oil pipelines, and the un-restfulness in the Niger Delta area. The research work is intended to inform the need for cultural change in JV operations in Nigeria oil and gas industry by providing information on the existing JV working culture, partners relationship under the current joint operating agreement (JOA) vis a vis best global practices and to make recommendations to the Nigerian populace especially the new board of director that will be appointed early 2022 following the new petroleum industrial bill (PIB) that has just been signed into law. This article is to provide information for the required restructuring and define the effective and efficient relationships and working culture under a new JOA. The result obtained established the fact that the existing working culture and relationship between the JV partners in the Nigerian oil and gas industry are not only unsustainable but unfit to deliver individual or joint venture interest. The JV operations must be incorporated as a legal entity having its own organization, dedicated management, and a workforce that will develop a positive working culture focused on achieving the JV goals and objectives.

Comments: Growth in Battery Storage Sparks Chase for Metals

Natural gas is considered the fossil fuel to facilitate the transition from hydrocarbons to lower-emissions energy sources such as renewables. Wind and solar projects factor significantly into major international oil and gas companies’ goals of achieving net-zero emissions in the future. For example, both BP and Royal Dutch Shell intend to reach net zero by 2050. The International Energy Agency (IEA) forecasts total installed wind and solar PV capacity is on course to surpass natural gas in 2023 and coal in 2024. This represents progress toward the achievement of the 2050 goals. However, wind, solar, and hydropower, which together account for about 90% of all renewable-electricity generation, are largely dependent on variable weather conditions. And the variability in weather translates to an undesired variability in availability and reliability. For wider adoption, utility-scale batteries are needed to store energy for use when a light breeze barely whispers, or the skies are cloudy. Battery-storage projects are not a new concept, but their recent growth is notable. Although California is the global leader in the deployment of high-capacity batteries, news from other parts of the world offers indicators of progress. In 2020, global installed energy-storage capacity totaled 173.6 GW, including pumped-hydroelectric, compressed-air, advanced battery-energy, flywheel-energy, thermal-energy, and hydrogen-energy storage systems. The US had 0.74 GW of rated-power battery-storage projects based on lead-acid, lithium-ion, nickel-based, and sodium-based batteries. A Tesla subsidiary, Gambit Energy Storage LLC, is currently constructing a 100-MW+ battery-storage facility in Angleton, Texas, about 40 miles south of Houston. It is expected to become operational 1 June. Elon Musk (best known for his Tesla electric vehicles and SpaceX) launched a 100-MW lithium-ion battery project in South Australia in 2017 adjacent to a wind farm. Soon to become a “hot(ter)” commodity will be the lithium, rare earths, and other minerals needed to build the batteries. The global lithium and cobalt markets rallied in January and February in response to the resurgence of demand for electric vehicles (EV) in Europe. Last year, sales in battery EVs and plug-in-hybrid EVs in Europe outpaced those in China. Adamas Intelligence reported that the second half of 2020 saw a global 205% increase in battery cobalt deployed, a 192% increase in battery lithium deployed, and a 135% increase in battery nickel deployed vs. the second half of 2019. Investors and companies are chasing this potentially lucrative sector. Startup DeepGreen Metals, whose partners include Maersk and Allseas, aims to mine the deep sea for battery metals and on 4 March announced an agreement to merge with Sustainable Opportunities Acquisition Corp. to list on the Nasdaq. Cornish Lithium, holding rights to explore for lithium within geothermal waters in areas off the north and south coasts of Cornwall, UK, recently signed on MarineSpace to help it begin its desk-based exploration program to identify potential geological targets for later research. Physical exploration work is not expected for at least 4 years.

Revealing Robust Oil and Gas Company Macro-Strategies Using Deep Multi-Agent Reinforcement Learning

The energy transition potentially poses an existential risk for major international oil companies (IOCs) if they fail to adapt to low-carbon business models. Projections of energy futures, however, are met with diverging assumptions on its scale and pace, causing disagreement among IOC decision-makers and their stakeholders over what the business model of an incumbent fossil fuel company should be. In this work, we used deep multi-agent reinforcement learning to solve an energy systems wargame wherein players simulate IOC decision-making, including hydrocarbon and low-carbon investments decisions, dividend policies, and capital structure measures, through an uncertain energy transition to explore critical and non-linear governance questions, from leveraged transitions to reserve replacements. Adversarial play facilitated by state-of-the-art algorithms revealed decision-making strategies robust to energy transition uncertainty and against multiple IOCs. In all games, robust strategies emerged in the form of low-carbon business models as a result of early transition-oriented movement. IOCs adopting such strategies outperformed business-as-usual and delayed transition strategies regardless of hydrocarbon demand projections. In addition to maximizing value, these strategies benefit greater society by contributing substantial amounts of capital necessary to accelerate the global low-carbon energy transition. Our findings point towards the need for lenders and investors to effectively mobilize transition-oriented finance and engage with IOCs to ensure responsible reallocation of capital towards low-carbon business models that would enable the emergence of fossil fuel incumbents as future low-carbon leaders.

Assessing the Preparedness of Major Oil and Gas Companies for a Low-Carbon Energy Transition

Given the volume of capital already embedded in the energy sector, the transition of the oil and gas majors towards low-carbon energy will be crucial in meeting global climate objectives. Various commercial indices currently attempt to track climate change risks embedded in these firms. The methodologies employed are largely based on the carbon footprint of a company’s assets, operations and supply chains. These approaches rely on objective information about a company’s greenhouse gas emissions, thereby avoiding inherently subjective evaluations of corporate governance, strategic planning, and risk management policies. The indices generally do not consider the steps being taken by companies to engage in new lines of business and re-shape business models in response to changes in the global energy system. In short, they act as a poor proxy for the investment risks facing oil and gas sector investors. In this paper, we introduce a methodology for identifying strategic differentiation among major international oil and gas companies with regards to a low-carbon energy transition. Our technique scores companies based on the degree of portfolio exposure, R&D, diversification, and observable business development in low-carbon activities. We track stated targets, board-level commitment, and monitoring by senior management. Our multi-dimensional analysis produces a within-sector, relative scoring of the degree of preparedness for the energy transition by the largest publicly-traded oil and gas companies. Our approach offers a path towards meaningful interpretation of qualitative information that is becoming available as a result of recommendations by the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFD) and national regulatory initiatives. The framework has potential application in other sectors by simplifying the assessment of potential strategic responses in energy-intensive industries. We conclude that existing information disclosures made by the oil and gas majors facilitate a robust evaluation of strategic positioning ahead of a potential shift to a lowcarbon economy.

Assessing relative potential economic impacts of an oil spill on commercial fisheries in the Great Australian Bight using a Bayesian Belief Network framework

Review based experiences of oil-spill induced impacts on fisheries were used to develop a Bayesian Belief Network (BBN) to evaluate the potential economic consequences of a (hypothetical) oil spill in the Great Australian Bight, an area currently being explored by several major international oil companies. The model differs from most previous BBN analyses in that it also considers the relatively short term economic impacts of such a spill, encompassing market and fisher behaviour, as well as impacts on the stocks affected directly by the spill. The results suggest that impacts vary depending on the characteristics of the fishery (i.e. main species, location etc.) and the timing and extent of the oil spill, but market, management and fisher behavioural responses (and their ability to respond) were found to have the greatest impact on the final economic outcomes.

Energy Export Potential in the Caspian Region and Its Impact on EU Energy Security

Energy security has emerged in recent years as one of the cornerstones of the European Union’s (EU’s) foreign policy. The EU is highly dependent on imports of oil and gas, 35 per cent of which comes from Russia. Diversification of energy supplies is thus a key goal for the EU. The Caspian region contains some of the largest undeveloped oil and gas reserves in the world. The intense interest shown by the major international oil and gas companies testifies to its potential. Although the area is unlikely to become “another Middle East”, it could become a major oil supplier at the margin, much as the North Sea is today. As such it could help increase world energy security by diversifying global sources of supply. Development of the region’s resources still faces considerable obstacles. This study focuses on the countries along the southern rim of the former Soviet Union that are endowed with significant oil and gas resources: Kazakhstan, Turkmenistan and Uzbekistan in Central Asia, and Azerbaijan in Transcaucasia. The Southern Energy Corridor (SEC), which aims to link Caspian Basin and potentially Middle East gas supplies to Europe, is one of the EU’s six priority axes of energy infrastructures. Drawing on the external governance literature, this article provides an analysis of the EU’s efforts in the wider Black Sea area to increase its energy security. It concludes that despite difficult domestic and geopolitical obstacles, the EU is pushing forward its objective to establish the SEC.

The Biggest Deal of the Century: & How to Make It Work

Deputy Crown Prince Muhammad bin Salman’s remarks about an initial public offering (IPO) for a stake in Saudi Aramco is a shot across the bow for many – the world’s major international oil companies (IOCs), other nations and their state-owned national oil companies (NOCs), and all those within the Kingdom of Saudi Arabia whose fate is tied to a successful outcome.With oil prices so low it may seem an odd time to sell share shares in the world’s largest oil company. But this, the biggest deal of the century, is not about market timing. Nor is this principally a financial transaction. This deal will serve as the catalyst for change – cultural change, organizational transformation, and economic evolution and development. The giant has awoken and the only thing that is certain is that the world will never be the same.An Aramco IPO, now tentatively slated for 2018, revives the decades-old debate about the merits of publicly-traded company ownership and the unique case of state-led enterprises. NOCs and other state-led enterprises already face an enormous challenge in balancing the needs of their public mission with the demands of commercial and economic success. The additional burden of publicly-traded ownership raises the stakes with the difficult balance between public good and public shareowners.

Prospectivity of the Nigeria-São Tomé & Príncipe Joint Development Zone – an integrated geoscience approach

The area of the Joint Development Zone (JDZ), between Nigeria and São Tomé & Príncipe, lies on the southern front of the Niger Delta. The delta is a prolific hydrocarbon-producing region with numer¬ous commercial discoveries of oil, condensate and gas. The JDZ is divided into 11 hydrocarbon exploration blocks that have undergone competitive bid licence rounds; notably in 2004 when nine blocks were offered and a year later when five blocks were offered. To date, eight wells have been drilled within the waters of the JDZ by major international oil companies and all are believed to have encountered hydrocarbons. Obo-1, Obo-2 and Enitimi-1 wells encountered oil and gas whilst Lemba- 1X, Malanza-1X, Oki East-1X, Bomu-1 and Kina-1XR found gas. These eight wells have only targeted structural traps – six of these wells have been drilled on hanging walls of the toe-thrusts, while only two (Obo-1 and -2) have targeted reservoirs within a footwall, encountering oil. In 2002, PGS acquired a 3000 km2 multi-client 3D seismic dataset over the northern part of the JDZ waters; this dataset was then reprocessed in 2007 through a Pre-Stack Time Migration sequence. The seismic survey covers Blocks 1 to 4 (and partially Blocks 5 and 6) covering the eight exploration wells and is situated in water depths of between 1500 and 2300 m.

Q&A with Hatem Nuseibeh, President and Group Representative of Total UAE

Q&A Describe Total’s major projects in the UAE and Abu Dhabi and their importance to the company. Two things show the importance of the UAE and Abu Dhabi to Total. The first is our footprint: We are the largest international oil company (IOC) in Abu Dhabi involved across the whole energy value chain—from upstream through midstream to downstream. In the upstream sector, we operate the Abu Al Bukhoosh (ABK) field, making us the only major IOC to operate in Abu Dhabi, and we are also a partner in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO) and the Abu Dhabi Marine Operating Co. In gas treatment, we are a partner in Abu Dhabi Gas Industries Co. (GASCO), while for liquefied natural gas (LNG) exportation, we are a partner in Abu Dhabi Gas Liquefaction Co. (ADGAS). For gas importation, we are a partner in Dolphin Energy. In the downstream sector, we are involved in the Fertil fertilizer project with Abu Dhabi National Oil Co. (ADNOC). We are also partners with Masdar in the Shams 1 solar energy project, as well as in the Taweelah desalination project. We have a lubricant blending plant and a trading office in Dubai. This shows how important Abu Dhabi and the whole UAE is to Total. The second important thing is the recently awarded ADCO concession, because what we have offered to ADCO for our 10% stake is a clear indication of our commitment to Abu Dhabi and its future.

Regime switching model of US crude oil and stock market prices: 1859 to 2013

This paper examines the relationship between US crude oil and stock market prices, using a Markov-Switching vector error-correction model and a monthly data set from 1859 to 2013. The sample covers the entire modern era of the petroleum industry, which typically begins with the first drilled oil well in Titusville, Pennsylvania in 1858. We estimate a two-regime model that divides the sample into high- and low-volatility regimes based on the variance–covariance matrix of the oil and stock prices. We find that the high-volatility regime more frequently exists prior to the Great Depression and after the 1973 oil price shock caused by the Organization of Petroleum Exporting Countries. The low-volatility regime occurs more frequently when the oil markets fell largely under the control of the major international oil companies from the end of the Great Depression to the first oil price shock in 1973. Using the National Bureau of Economic research business cycle dates, we also find that the high-volatility regime more likely occurs when the economy experiences a recession.

Emerging Frontiers: Focus on Myanmar

President's column In this third column on emerging geographic frontiers, I want to focus on what may be the fastest developing country in the Eastern Hemisphere—politically, demographically, and certainly from the standpoint of upstream oil and gas. Myanmar, often referred to as Burma, has been largely isolated from the global economy for roughly 50 years due to oppressive military rule and extensive human rights violations. In 2012, under newly appointed president Thein Sein, Myanmar began to reform its foreign direct investment laws about the same time the US and the European Union began suspending sanctions. E&P industry players, large and small, have been watching and waiting for just such reformations and are now being attracted by the potential for huge growth in the existing gas production and the potential of the country’s 17 sedimentary basins, largely offshore and unexplored. Production History Myanmar is one of the world’s oldest producers of oil; it exported its first barrel of crude in 1853. Two oilfields discovered in 1887 and 1902 are still in production. Today, the country is a net importer of crude oil as 90% of production is gas, most of which is exported to Thailand. With a current production of 21,000 B/D, primarily from only two fields, the need and attraction of foreign investment is clear. The sedimentary basins are extremely underexplored and much of the available geological data were acquired with outdated technology. Estimates of reserves therefore vary widely. In 2012, the Ministry of Energy estimated offshore Myanmar crude oil reserves at roughly 540 million bbl and natural gas reserves at 65 to 72 Tcf. Myanmar Oil and Gas Enterprise (MOGE) was created in 1963, shortly after nationalization of the oil and gas industry, in an effort to consolidate the oversight and management of the various local and global efforts to increase reserves and production. However, foreign operators were not allowed to participate in the efforts until 1988, when generic foreign investment legislation was passed. The Ministry of Energy held its first formal licensing round for onshore blocks in 2011, but due to the existing sanctions, western companies were largely absent. More recently, 30 offshore blocks were offered for licensing in June 2013, including shallow- and deepwater blocks. Participation was prolific, including most major international oil companies. In fact, according to an energy ministry source, foreign companies’ tenders will be given priority, as they have the technology and expertise required to bring the complex and costly deepwater resources to market. Significantly, the government waived the initial requirement that foreign companies partner with a Myanmar-owned firm for the deepwater blocks, which increased the participation greatly. Results of the bidding are expected in early 2014 but one thing is clear – interest in finding and developing deepwater resources is widespread and intense.

Regime Switching Model of US Crude Oil and Stock Market Prices: 1859 to 2013

This paper examines the relationship between US crude oil and stock market prices, using a Markov-Switching vector error-correction model and a monthly data set from 1859 to 2013. The sample covers the entire modern era of the petroleum industry, which typically begins with the first drilled oil well in Titusville, Pennsylvania in 1858. We estimate a two regime model that divides the sample into high- and low-volatility regimes based on the variance-covariance matrix of the oil and stock prices. We find that the high-volatility regime more frequently exists prior to the Great Depression and after the 1973 oil price shock caused by the Organization of Petroleum Exporting Countries. The low-volatility regime occurs more frequently when the oil markets fell largely under the control of the major international oil companies from the end of the Great Depression to the first oil price shock in 1973. Using the National Bureau of Economic research business cycle dates, we also find that the high-volatility regime more likely occurs when the economy experiences a recession.

Sustainable Energy Growth Tops Middle East Conference Agenda

Conference review The 15th annual Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), organized in the capital of the United Arab Emirates, attracted major national and international oil and gas companies from around the world to discuss common challenges and the opportunities in the region. Involvement from Middle Eastern countries was higher than ever at the conference, with delegations from Saudi Aramco, Qatar Petroleum, Kuwait Petroleum, Sonatrach, and many other international companies discussing their strategies and technologies. The largest oil and gas show outside North America were held under the theme “Sustainable Energy Growth: People, Responsibility and Innovation.” More than 50,000 people from 91 countries attended. SPE organized the conference and technical sessions, which covered a number of topics that influence the industry including technical, economic, personal skills, and capability issues. More than 50 technical sessions presented by 300 industry experts were delivered during the event. Mohamed Bin Dha’en Al Hamli, UAE minister of energy, opened the ADIPEC conference. He said the scale of ADI-PEC and its setting in Abu Dhabi made it an ideal platform to address the complex technical and logistical challenges of exploring for and producing oil and gas at a time of increasing global energy demand. Formally introducing the conference, Ali Rashid Al Jarwan, chief executive officer of Abu Dhabi Marine Operating Company (Adma-Opco) and chairman of the ADIPEC 2012 conference, said the itinerary was the most comprehensive to date. “This year, the event offered more depth and scope than ever before. ADIPEC was founded on the principle of sharing knowledge and experience. This principle is as relevant now as it was 25 years ago when ADIPEC was established,” he said. Speaking on the challenges of growing global energy demand, Christophe de Margerie, chief executive officer of Total, said that demand for oil and gas from non-OECD countries has increased and this creates a challenge. “Meeting the increasing demand is a bit challenging due to projects’ complexity, access to finance, and geopolitical constraints,” de Margerie said. “To meet this soaring demand, new LNG (liquefied natural gas) projects are needed to satisfy European and Asian demand, even with potential additional supply from shale gas.” To address the new challenges facing the industry, companies should focus on leveraging technology, he said. “This will help unlock resources and improve recovery, optimal development through innovation, as well as operational excellence,” he said. Sami Al Rushaid, chairman and managing director of Kuwait Oil Company, said that his company is strongly focusing on optimizing recovery through primary, secondary, unconventional, enhanced oil recovery (EOR), and development of heavy oil. “Significant oil is also expected to come from exploration activities,” he said.