EAGE Forum - 'The Future of the Oil Industry in Light of the Recent Oil Prices'
Tuesday 31 May 2016, 08:30 - 12:10 hrs.
The apparent predictability of oil prices between 2010 and mid 2014 at 100USD/bbl levels has proven wrong and developed into a highly volatile oil price behavior between 30 and 50 USD/bbl. Most companies now adopt very conservative planning numbers for their planning cycles. The industry currently undergoes a profound change to face the new reality. Most companies (re)act very similarly: postponing investment decisions, abandon development projects, divesting assets, cutting exploration expenditures and manpower. At 40 USD/bbl things just don’t work as they used to work.
Long term view versus short term necessities, what is the right balance? Divest low ranking assets? Who should buy? Adopt business models to shorter turn around times? Will this and other current measures prepare companies for the next upswing? Will there be an upswing? Will the energy mix change and tilt towards non-hydrocarbon sources (Germany!)? Can the industry maintain output on the medium to long run? Replace reserves?
Many questions which keep NOCs, IOCs and service companies busy these days. We will see the production effect of fewer investments only in a several years. The discussion if the world actually will need all the oil in the ground picks up. Coal was replaced by oil, not because there was no coal any more. Will oil face the same destiny in the next 10 to 20 years? Or will low oil prices fuel consumption and win the competition against other fuels?
The opportunity to discuss this controversial topic during our executive session and the entire conference will shed light on how companies see their future in view of the continued volatile oil price environment.
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J. Murillas (Director Global Explorations, Repsol)
G. Ingram (VP OMV)
W. Hamilton (SVP OMV)
C. Powell (EVP Global Exploration, Shell)
H. Meyer (VP Strategy, Wintershall)
J.G. Malcor (CEO, CGG)
L. Bertelli (Chief Exploration Officer, Eni)
T. Dodson (EVP Exploration, Statoil)