Industry Breakfast Session (ticketed event)

Industry
Breakfast Session

Tuesday, 27 september

0800-1000 hours

Financing the Change

Some analysts foresee that the oil industry will spend around 15 trillion dollars during the coming 10 years to meet the expected future oil and gas demand. They further estimate that oil and gas reserves additions from recovery enhancement will most likely supersede the additions from grass root exploration.

What are the major changes that we expect to see during the coming decade?

Increasing focus on enhancing recovery from producing assets
Increasing focus on hydrocarbon production from tight, deep and unconventional reservoirs
Increasing environmental awareness and thus environmental control and constrains
Cost and risk attached to the incremental development barrels will be progressively higher than current
Technological advancement and innovative thinking will be the drive force for achieving all above
Managing uncertainties specially those linked to future demand and pricing

Who will develop strategies and executing these changes?

Host governments to either directly finance or make the necessary changes to enable and encourage investor participation
International and independent oil companies will be the main drivers of implementing these inevitable changes
Service companies will be required to align their research and development functions to the requirements of the end users. They may also find merits in forming alliances with oil companies to shoulder some risk for bigger rewards
Investment institutions and banks will need to digest and address the future financing requirements of the oil industry. Politics is taking a dominant role in this area that may require designing innovative business and financing solutions to manage those changes

How these changes may be handled and financed?

The relationship between any two or more parties of the above stakeholders will mandate introducing innovative business models for ensuring growth and sustained success. A dedicated effort must be made to first understand the strengths and weaknesses of the currently used models such as EPSA’s, DPSA’s, Services and buy-back agreements, etc., in the current business environment and to design and develop additional business solutions to encourage collaboration between the various parties and to build the momentum for financing and managing the expected inevitable major changes.

Session Moderator

Anwar Khalaf
General Manager, Exploration & Petroleum Engineering, Bahrain Petroleum Company

Keynote Speaker

To be confirmed