CERAWeek
starts in Houston with
top oil executives views of the future
Petroleumworld
CARACAS
Petroleumworld.com
02 09 06
CERAWeek
2006 began Tuesday with Daniel Yergin, CERA Chairman welcoming
over 1,600 participants from 55 countries to the conference that
is celebrating its 25th anniversary. Ali Al-Naimi, Minister of
Petroleum and Mineral Resources of Saudi Arabia, was the opening
speaker on Tuesday and eschewed oil price forecasts and advocated
instead examining the forces that will shape the future.
Naimi said
that the future of the industry “is tied to mankind’s
aspiration for a better way of life”—and equally,
the economic well-being of the world’s populations depends
on a vibrant oil industry that can deliver cost-effective energy.
He added
that there is a healthy long-term market supply and balanced demand
and is sufficient spare capacity to handle demand surges or supply
disruptions, without price spikes. Concluding, he said that government,
producers, and consumers will rise to the challenges ahead.
Stuart R.
McGill, Senior Vice President, Exxon Mobil Corporation, in the
Global Oil plenary, among other issues discussed noted that the
world will need 50 percent more energy by 2030, and that the future
challenge is as much geopolitical as it is scientific, requiring
political leadership for effective, efficient, and economical
energy development.
Clarence P.
Cazalot, President and Chief Executive Officer of Marathon Oil
said that companies need to take a fresh look at processes, fields,
and fuel types—expanding the view to include unconventional
liquids, gas-to-liquids, ethanol, and oil shales.
On
Tuesday's luncheon keynote Jeroen van der Veer, Chief Executive,
Royal Dutch Shell plc, cited growing concerns about future supplies
of energy and the climate change. The challenges are enormous,
but our ability to innovate and harness technology can offer solutions.
The world will long depend on fossil fuels to meet expanding demand,
in both developed and developing nations. The need to find and
recover more conventional oil and gas, develop unconventional
hydrocarbons, and use coal more efficiently is greater than ever.
At the same time, we must reduce carbon dioxide emissions, make
alternative forms of energy economic, and increase energy efficiency.
International energy companies—with their integrated capabilities,
global experience, and commercial drive—will play a key
role, he said.
On international
oil, Fu Chengyu, Chairman and Chief Executive Officer, China National
Offshore Oil Corporation (CNOOC), said CNOOC is focused on the
future and the transformation under way in China’s industries,
lifestyles, and society. The higher standard of living and opportunities
China seeks for its people require new sources of supply, new
technology, and new international partners to keep China’s
transformation stable, predictable, and secure. Mr. Fu noted that
historically companies become strong in their national markets
and then take that strength internationally, a model for CNOOC.
CNOOC sees energy security in terms of participation as an international
player, supplying the global marketplace. As a natural result
of China’s development, CNOOC seeks, together with global
partners, to replace reserves aggressively, hone competitive skills,
find the world-class resources, and face the uncertainty of volatile
oil and gas markets, as well as assure its shareholders a strong
return.
Dinner
keynote address Daniel Yergin, CERA Chairman, offered his views
on energy security, which is once again front and center. New
and old elements are driving concerns—the tight oil market
and what that means for prices; the threat of terrorism, particularly
in oil exporting nations; the fears of a nationalist backlash;
increased geopolitical rivalries; and a scramble for supplies
and the energy needed to power economic growth. Energy security,
said Dr. Yergin, is not just about oil. Today it encompasses everything
from electric power blackouts to anxiety over gas as a global
commodity, taking into account the global nature of energy, the
greater vulnerability in the world trade system, and how countries
define energy security. He outlined several principles of energy
security, including diversification of supply, flexibility, oil
market interdependence, the importance of high-quality and open
information, engaging the new market players, the market as a
source of security and flexibility, promoting research and development
and energy conservation, a supportive investment climate, and
managing international relations to assure energy security worldwide.
On
Wednesday, the Hon. Clay Sell, Deputy Secretary, US Department
of Energy, was to give the opening address. The Hon Fernando Canales
Clariond, Mexico’s Secretary of Energy, was to offered his
views on the issues, and The Hon. Robert E. Rubin, Director and
Chairman of the Executive Committee, Citigroup, gave the dinner
keynote.
Thursday
Ceraweek final day, electric power will take center stage. The
Hon. Joseph T. Kelliher, Chairman of the Federal Energy Regulatory
Commission, will examine the lessons learned as North America
moves toward defining markets. CERA experts will give their views
on the regional and global power markets and the possible futures
on the horizon.
Petroleumworld
02 08 06
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