Introduction to Petroleum

Discussions on the essense of the business

Facilitated by Farouk Al-Kasim and Erik Jarlsby PETRAD 2013

Photo Helge Hansen - Statoil

GLOBAL PERSPECTIVES

 What is human progress ?

 Can human progress be sustained without more energy ?

Global warming simply explained (324): http://www.youtube.com/watch?v=dP-tg4atr5M Global warming by National Geographic (303): http://www.youtube.com/watch?v=lHFd5kLAwNY

Can dependence on fossil fuel destroy our planet ?

Can we replace fossil fuel within the next 30 years?

1-hour BBC documentary on global warming (2009): http://www.youtube.com/watch?v=8Rlyzv6EDvk

a) Can petroleum as energy source be replaced within the next 2 decades?

b) As a result of shale gas, will lower gas prices seriously threaten international gas trade?

OWNERSHIP AND OBJECTIVES

Who owns the oil & gas in the subsurface ?

a) Onshore b) Offshore

 What makes any country wish to exploit its petroleum resources ? For the host country, is petroleum primarily a source of:
Energy ? or Wealth ? Or A stimulus to development ?

Petroleum exploration and production: The business and its context

Benefits
Natural and social ENVIRONMENT
Lasting benefits for society

Commercial profit

Regulatory management (Government) Licensing and Exploration Tail End and Abandonment

Development

Production

Business management (Companies)

Oil & gas resources

Natural and social ENVIRONMENT

Petroleum exploration and production: The value chain

Regulatory management (Government) Licensing and Exploration Tail End and Abandonment

Development

Production

Business management (Companies)

STAKEHOLDERS

 Can governments themselves perform E & P petroleum operations? Should they do so?

 Are international oil companies necessary? If yes, for what?

 What is the governments role in the petroleum sector? What is the role of national oil companies?

 Should citizens be involved in decisions on frame conditions for the petroleum sector ? How ?

GOVERNANCE PERSPECTIVES

 Do governments and oil companies have the same economic and social objectives ?

How can the objectives of governments and oil companies be reconciled in practice:
a) Before the start of operations? b) Before the start of development?

 Can petroleum extraction help developing countries improve their economy and quality of life?
What is required to ensure this?

 Can oil & gas resources harm the host-country? How?

Do you think that:

Transparency and participation by citizens in major petroleum decisions is essential for good governance ? Improving citizens understanding of petroleum sector is a government responsibility ?

Steve Coll interview on oil company influence in developing countries (214): http://www.youtube.com/watch?v=dSFMCCU8G0E
ExxonMobil on fighting malaria in Chad (102): http://www.youtube.com/watch?v=6v_4RTtRlYY ExxonMobil on empowering Chad (747): http://www.youtube.com/watch?v=z-Ux6NyKAIs

Do you agree that:

local content must not be forced by governmnet upon operators? Competence and capacity development is primarily a government responsibility?

 What should Governments do to prevent environmental degradation from

a) Petroleum E&P operations? b) Petroleum consumption?

FUTURE PERSPECTIVES

BBC on sgard subsea compression and climate challenge (356): http://www.youtube.com/watch?v=5z_eIjYHyx0 BP efforts on technology development (2032):
http://www.bp.com/en/global/corporate/press/media-librarypreview.html?assetpath=/content/dam/bp/media-library/video/technology-approach-1_79w8tby9.jpg&assettype=video&category=bp:bp-components/bp-media-library/technology

For the petroleum sector,

what will be the most critical technological development in the next two decades ?

 Will we still have international oil companies ? What will be the role of national oil companies ? Will service companies replace operating oil companies ?