• The Impact of Unconventional in a Transforming Industry
    Session Chairs: Gamal Hassan, ADH; Guy Tennant, Halliburton; Stephen Lloyd, Oxy

    1. The US shale industry has been a game changer because it can respond to price signal in few months. Also, shale drillers have to squeeze down cost, become more efficient, and to get more oil from each well drilled. Consequently, US shale production has become comparable with many conventional resources. Some unconventional producers demand that conventional producers restrain production market return of supply management, others might demand that conventional producers tighten the market. Nevertheless, this will be overshadowed by the bigger structure shift still looming over the market in the form of a nimble shale industry. Some might argue that regulators should avoid price controls, import tariffs, or throw in strategic stocks. Others might argue that we alternatively should promote resilience and transparency by improving data, fostering well-regulated financial markets, and weaning the industry off subsidies.

      Oil remains a lifeblood of civilisation, and production stability is of paramount importance. However, since 1859, oil production has tended towards booms and busts because supply and demand responded slowly to the price changes and storage was finite and costly. The tension in the market is acute because it is not just in the relative stasis of spot price but also on the forward curve, where a trader can take a view on how the market will shake out in the coming years and producers can hedge future production. The problem for oil bulls is that the physical market is still languishing under near-record stockpiles and ample supply, therefore many analysists expect the current period of low volatility to be the norm of the market. Also, it is likely that the future trends will resemble the past featuring surprising shifts, sustained imbalances, and upheaval.

      This executive panel discussion will examine the structure shift of the market, supply-demand pattern, the ability of the unconventional for a rapid response to the price signal, and examine our views including whether the development of the unconventional resources will require an unconventional approach or not.  Moreover,  the panel will examine the improvement in the extraction efficacy and technology and its impact on developing the conventional resources, the loss of the United States as an anchor market, and the global shortage of human capital.

  • R&D—The Next Step Change
    Session Chairs: Vincent Rosales, Fluor; Khaled Al Aradi, Schlumberger; Ali Al Janabi, Shell

    1. The 2016 World Economic Forum focused on the Fourth Industrial Revolution and its implications for all stakeholders in the global community. The products of the first three industrial revolutions—steam engines, electricity and information technology, remain bedrocks of today’s energy sector. Today’s ecosystem of owners, contractors, and suppliers will require renewed partnerships in the future to  maximise the benefits brought by the next wave of connectivity between the digital and physical world.

      How will each respond?  Who will lead regionally and who will lead internationally?  How will our plants become safer and more profitable? Will the energy sector driven change apply to other sectors?

      Now is the time to leverage the rapidly advancing technology and human connectedness underpinning the Fourth Industrial Revolution to improve operability, safety, and profitability.

      This panel discussion will explore emerging innovations throughout the capital project lifecycle and how large scale application of existing and new solutions can bring greater capital efficiency to the industry and improve cost competitiveness, and what the impact on the oil price will be.

  • Capitilising on Data in an Evolving Digital World
    Session Chairs: Guo Yueliang, CNPC; Adil Noman, ExxonMobil; Bernard Krainer, OMV

    1. The oil and gas industry has long dealt with large quantities of data to make technical decisions. Energy companies have, for many years, invested in seismic software, visualisation tools and other digital technologies. Now, with new data acquisition, processing and storage solutions—and the development of new devices to track a wider array of reservoir, machinery and personnel performance, today’s total data is predicted to double in the next few years. The oil industry recognises that great power and imminent breakthroughs can be found in this data by using it in smarter, faster ways.

      The panelists will look toward the next few years and discuss the approach for oil and gas firms understanding, leveraging and unleashing the power of data. They will share their own practice at capitalising on data in the hope of finding solutions to industry challenges.

      The panel brings a wide and varied perspective that will address which applications of data will produce the most value for our industry, what capabilities we should develop to make the most of our data, and identify the challenges.

  • Developing and Sustaining In-Country Value
    Session Chairs: Ibrahim Al Alawi, AlMansoori; Salem Ashoor, BP; Jose Pereira, Partex

    1. In-Country Value (ICV) plays a key role in maximising the industry’s contribution to social and economic development in the country. It is defined as the total spend retained in-country that can benefit business development, contribute to human capability development, stimulate productivity in the country’s economy and develop a competitive and sustainable local supply chain for goods, services and skills.

      ICV should be driven at industry level. In order to deliver value for the country, it is essential that the government, operators and contractors align and work closely together. ICV strategy focuses on three main areas—contracting and local supply, capability building and social investment.

      A key source of value is to leverage the oil and gas industry collaborative efforts to progressively and effectively develop the local supply chain and enhance the ICV development with an aim to build on the successes to date. ICV plans and strategy aim at the participation of local communities and local goods & services, as well as in the development of local assets, skills, suppliers and institutions associated within the oil and gas sector in the country.

      In terms of contracting and local supply, the aim should be in favoring contracts with local businesses and developing local manufacturing and services capabilities that will provide service to the country, the region and beyond. The second component of ICV is investment in people, particularly the youth, with a focus on developing and retaining the best local talent by creating exciting career opportunities and offering world-class training and accreditation, benefitting both the company and the country. The third component is the social investment that aims to bring benefits to the country by supporting social development in the community at various levels—engaging with communities, NGOs, government and academics to bring benefit for all.

  • Regional Focus—Africa: Opportunities and Challenges
    Session Chairs: Gamal Hassan, ADH; Maurizio La Noce; Mubadala; Hatem Nuseibeh, Total

    1. With more than 60% of large hydrocarbon discoveries in the world in the past 5 years made in Africa, Africa is set to become a leading player in the oil and gas industry. However, the decline in the global oil price has impacted the level of activity and oil & gas revenue of many countries across the African continent. Nevertheless, the African continent still offers significant opportunities in the oil & gas sector. Therefore, it is an opportune time for governments to look beyond the challenges caused by lower oil and gas prices and consider other forces that are shaping the industry, reform their regulatory, fiscal and licensing systems in order to attract oil & gas investors. It is an opportune time for the oil and gas industry to consider introducing company standards for them to consider the impact of the digital revolution and technological breakthroughs to reduce cost and give local players a chance to enter the sector when activity picks up again. Also, it is important to lower the cost of extraction and improve both organisational and extraction efficiency.

      This executive panel discussion will examine the challenges facing Africa’s oil & gas industry, deal with the decline, the role of renewable energy, and restructure their regulatory framework to sustain their development. Also, the panel will examine measures they are taking to address the digital revolution, build knowledge-based organisations, accelerate the adoption of breakthrough technology, and adjust their business models to survive and sustain their development in an era of industry restructuring and cost optimisation.

  • Collaboration Between Petroleum and Renewable Energies
    Session Chairs: Neri Askland, Statoil; David Khemakhem, ZADCO; Hassan El Ali, Zakher Marine

    1. Over the last years, the renewable energy industry has been through a transformation where one might say its industrialisation has started full on. Over the next few decades, the renewable energy industry is expected to continue to grow at a faster pace and increase its share in the energy mix.

      The Paris agreement (COP21) has set clear direction towards decarbonisation of the energy industry, and the implementation of this agreement will have effect on the petroleum industry. At the same time, as the population increases, energy efficiency will continue to improve consumptions per energy unit consumed per capita, and a switch away from liquid fuels to renewable fuel, when feasible, will continue.

      According to the IEA International Energy Outlook 2016, consumption of non-fossil fuels is expected to grow faster than consumption of fossil fuels. Although in 2040, fossil fuels is still expected to account for 78% of energy use. Liquid fuel will reduce its share in the energy mix in the long-term, however it will still have a larger production and demand than today.

      Natural gas is the fastest-growing fossil fuel in the outlook, continuing into the unforeseeable future as an attractive and abundant resource where tight gas, shale gas and coalbed methane resources are being unlocked. Natural gas is also seen as the perfect complimentary power generation for wind and solar, in order to help overcome the intermittency of these sources of energy.

      Currently, the carbon intensity in the upstream oil and gas industry is at an average of 18kg per barrel of oil equivalent. In order to improve in this area, the oil and gas industry already applies renewable technology in its operations.

      Going forward, how will the oil and gas industry collaborate further with the renewable industry to further drive operational efficiency to lower emissions and costs?

      What will drive oil and gas companies to invest heavily in the decarbonisation of their industry to ensure their space in a cleaner energy future and what would drive them to potentially invest in renewable innovations for the long term apart from setting lower emissions?

      This will be debated by both leaders and specialists from the oil and gas industry and the renewable industry.

  • Attracting Talent in a Transforming Industry
    Session Chairs: , Bernhard Krainer, OMV; Hattem Nuseibeh, Total; Hassan El Ali, Zhaker Marine

    1. In terms of talent attraction the oil industry is facing a double-sided challenge. We need to attract new and young talented minds to move our industry forward and transform it within an ever and fast changing business environment. However, we also need to maintain our long-term experience; many of the older workforce are leaving the industry. How can we ensure that we pass on the knowledge that is not documented in written procedures but is stored in people's minds? New talent needs to be developed, mentored and be able to benefit from the existing experience.

      For the experienced staff, knowledge transfer should be a matter which can be solved within the organisation and the industry itself. HR departments often seem too distant from the real business needs to fully understand the weight of this issue. Openness and willingness to pursue flexible and innovative methods of knowledge transfer should ensure a successful transition.

      For attracting new talent, the oil industry is in direct competition with up-coming technologies like wind, solar and other alternative energy forms. We are also facing reputational challenges like climate change, pollution issues, accusations of corruption, being portrayed as a sunset industry, etc. None of this is attractive for the young generation. How can we ensure that young talent clearly see that we are the most important contributor for future energy supply, that we care about the environment and that we also offer long-term attractive careers? We need to find ways of attracting new talent with outstanding technical skills, as discovering new technical solutions in our industry will be as challenging and innovative as for alternative sources of energy.

      How do we get the commitment from the younger generation based on a positive image of the industry? They should not just join us because jobs in the oil industry are well paid, but based on the fact that their work will be meaningful and important for society.

      What are your solutions for attracting and building up a highly skilled and motivated young workforce?

  • Asset Integrity as an HSE Essential
    Session Chairs: Ahmad Al Suwaidi, ADMA-OPCO); Khaled Al Aradi, Schlumberger

    1. In our oil & gas activity, both in upstream and downstream, asset integrity plays a critical role in protecting the health & safety of our employees, communities and the environment, ensuring business sustainability and corporate responsibility.

      In the last 40 years, the oil & gas industry has seen major industry accidents resulting in loss of life, serious impact on the environment and billions-worth of property damage. All of which have a detrimental effect on reputation and the business continuity.

      Up until the late 1980’s, the oil & gas industry addressed integrity-related issues of all plants and associated operations in a “re-active” rather than “pro-active” mode. However, after 1990, major accident trends were on the rise, which shifted industry focus to a holistic and proactive approach towards asset integrity management from cradle to grave (from drawing board to design, procurement, building/construction, operations and finally decommissioning).

      The drop in oil prices in the 1980’s and the dramatic fall in the oil market over the last few years has exerted significant pressure on the hydrocarbon operators to drastically reduce operating and maintenance cost, which will also introduce hidden risks on assets integrity, HSE and business continuity.

      To ensure a better understanding of the potential impact on safety, asset integrity and business continuity, this panel session is planned for ADIPEC 2017 to discuss world best-practices & technologies that can be utilised to effectively manage ageing facilities, new assets and other safety processes which are important for HSE & sustainability of our oil & gas business.