Four Strategic Global Business Leader Panels Will Feature Oil and Gas Industry’s Most Powerful Decision Makers
CEO Speakers Represent Multinational Oil Majors, National Oil Companies, Oilfield Services and Industry Finance
Abu Dhabi, UAE – 14 August 2017 – Delegates at this year’s Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) will have more opportunities than ever to hear some of the oil and gas industry’s most powerful executives speak in open-invite conference sessions, after organisers confirmed they will increase the number of Global Business Leader panels for 2017.
Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, hosted by the Abu Dhabi National Oil Company (ADNOC), and organised by the Global Energy division of dmg events, ADIPEC has a successful history of attracting the industry’s top CEOs as speakers.
The separate Global Business Leader panels were launched in 2015 with two sessions. The positive response saw a third session added in 2016, and organisers will include a fourth panel discussion for 2017. With this year seeing ADIPEC expand to include downstream industries for the first time, an additional programme will include three Downstream Global Business Leader panels.
“ADIPEC is unique for its ability to attract such a broad group of industry seniors to an annual event, driven by the market power of the region’s NOCs and their IOC partners,” said Ali Khalifa Al Shamsi, CEO, Al Yasat Petroleum Operations Co. Ltd and ADIPEC 2017 Chairman. “Nowhere else will industry professionals get such an insight into the strategic thinking guiding the industry forward, from individuals whose decisions are critical to the future of oil and gas businesses.”
With planning for ADIPEC entering its final weeks, organisers have confirmed the involvement of 13 CEOs for the Global Business Leader panels and are in talks with many more across the global industry. A further nine CEOs have been confirmed for the Downstream Global Business Leader programme.
Beyond the conference programme, CEOs convene at ADIPEC to do business and sign deals, offering conference delegates an opportunity not only to learn from the best, but also to grow their business and find new opportunities.
The confirmed CEO speakers include Bob Dudley, Group Chief Executive at UK-headquartered multinational, BP; Datuk Zulkiflee W. Ariffin, President and Group CEO of Malaysian national oil company, Petroliam Nasional Berhad (Petronas); Patrick Pouyanné, Chairman and CEO of France’s Total; Vagit Alekperov, President, Member of the Board of Directors, and Chairman of the Management Committee, at Russia’s Lukoil; Musabbeh Al Kaabi, CEO, Petroleum and Petrochemicals, Mubadala Investment Company; Mario Mehren, Chairman of the Board of Executive Directors, Wintershall; Toshiaki Kitamura, President and CEO at Japan’s INPEX Corporation; and Claudio Descalzi, CEO at Italian multinational, Eni.
Their individual perspectives include experience at some of the world’s largest vertically integrated oil and gas companies, including two of the industry ‘supermajors’, operating across a diverse range of international markets, both in terms of exploration and production, and in terms of sales.
They will be joined by the heads of three of the biggest international suppliers of oilfield services: David Dickson, President and Chief Executive Officer at McDermott; Mark McCollum, CEO at Weatherford, and Lorenzo Simonelli, President and CEO at Baker Hughes, a GE company.
Offering a regional perspective on oil and gas investment will be Mansour Al Mulla, Chief Financial Officer, Petroleum and Petrochemicals, Mubadala Investment Company, while Brian Gilvary, Group Chief Financial Officer at BP, will offer an international view.
“ADIPEC is the leading event for the global oil and gas industry, and that is reflected in the status of speakers we consistently attract for our conference programme,” said Christopher Hudson, President – Global Energy at dmg events. “The executives who have agreed to be part of our Global Business Leader panels are among those whose decisions shape the future of the industry, and who are most qualified to discuss the path forward for oil and gas in the coming years.”
With ADIPEC 2017 to be held under the theme ‘Forging Ties, Driving Growth’, the four Global Business Leader panels will focus on strategies that can deliver continuing business success, with discussion of the most pressing topics facing the sector today. There will also be a highly focused session on energy finance, investment, consolidation and diversification.
“The oil and gas industry continues to be a key driver for the global economy, but the market is changing, and industry leaders must respond,” said Hudson. “ADIPEC is a platform where businesses can share ideas that will help them evolve with the commercial environment. With our invited CEO speakers for 2017, we are placing greater emphasis on leaders with a truly global footprint. Their decisions will define the future for oil and gas: pioneering new ideas and breaking boundaries, fostering relationships, and building on momentum.”
More than 10,000 delegates, 2,200 exhibiting companies, 900 speakers, and in excess of 100,000 visitors, from 135 countries, are projected to gather in Abu Dhabi for ADIPEC 2017.
In its 20th edition, ADIPEC is firmly established as the world’s most influential oil and gas industry event, and the ADIPEC Conference Programme sets the standard for the exchange of best practice and operational excellence. Dedicated 2017 conference sessions include offshore and marine, women in energy and security in energy, along with global downstream technical sessions. The downstream sessions are new for this year, emphasising downstream expansion, diversification, integration, and technology innovation and R&D.
Other features include the ADIPEC Awards, which celebrate excellence in energy; Young ADIPEC, designed to encourage students to choose a career in energy; and the exclusive VIP programme briefings for members of the Middle East Petroleum Club.
ADIPEC will be held at Abu Dhabi National Exhibition Centre from 13 to 16 November 2017.
Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and organised by the Global Energy division of dmg events, ADIPEC is the global meeting point for oil and gas professionals. Standing as one of the world’s top energy events, and the largest in the Middle East and North Africa, ADIPEC is a knowledge-sharing platform that enables industry experts to exchange ideas and information that shape the future of the energy sector. The 19th edition of ADIPEC 2016 took place from 7-10 November at the Abu Dhabi National Exhibition Centre (ADNEC). ADIPEC 2016 was supported by the UAE Ministry of Energy, Masdar, the Abu Dhabi National Oil Company (ADNOC), the Abu Dhabi Chamber, and the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi). dmg Global Energy is committed to helping the growing international energy community bridge gaps by bringing oil and gas professionals face to face with new technologies and business opportunities.
For media enquiries, please contact:
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PO Box 769256, Abu Dhabi, UAE
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Source: U.S. Energy Information Administration, Short-Term Energy Outlook
In April 2019, Venezuela's crude oil production averaged 830,000 barrels per day (b/d), down from 1.2 million b/d at the beginning of the year, according to EIA’s May 2019 Short-Term Energy Outlook. This average is the lowest level since January 2003, when a nationwide strike and civil unrest largely brought the operations of Venezuela's state oil company, Petróleos de Venezuela, S.A. (PdVSA), to a halt. Widespread power outages, mismanagement of the country's oil industry, and U.S. sanctions directed at Venezuela's energy sector and PdVSA have all contributed to the recent declines.
Source: U.S. Energy Information Administration, based on Baker Hughes
Venezuela’s oil production has decreased significantly over the last three years. Production declines accelerated in 2018, decreasing by an average of 33,000 b/d each month in 2018, and the rate of decline increased to an average of over 135,000 b/d per month in the first quarter of 2019. The number of active oil rigs—an indicator of future oil production—also fell from nearly 70 rigs in the first quarter of 2016 to 24 rigs in the first quarter of 2019. The declines in Venezuelan crude oil production will have limited effects on the United States, as U.S. imports of Venezuelan crude oil have decreased over the last several years. EIA estimates that U.S. crude oil imports from Venezuela in 2018 averaged 505,000 b/d and were the lowest since 1989.
EIA expects Venezuela's crude oil production to continue decreasing in 2019, and declines may accelerate as sanctions-related deadlines pass. These deadlines include provisions that third-party entities using the U.S. financial system stop transactions with PdVSA by April 28 and that U.S. companies, including oil service companies, involved in the oil sector must cease operations in Venezuela by July 27. Venezuela's chronic shortage of workers across the industry and the departure of U.S. oilfield service companies, among other factors, will contribute to a further decrease in production.
Additionally, U.S. sanctions, as outlined in the January 25, 2019 Executive Order 13857, immediately banned U.S. exports of petroleum products—including unfinished oils that are blended with Venezuela's heavy crude oil for processing—to Venezuela. The Executive Order also required payments for PdVSA-owned petroleum and petroleum products to be placed into an escrow account inaccessible by the company. Preliminary weekly estimates indicate a significant decline in U.S. crude oil imports from Venezuela in February and March, as without direct access to cash payments, PdVSA had little reason to export crude oil to the United States.
India, China, and some European countries continued to receive Venezuela's crude oil, according to data published by ClipperData Inc. Venezuela is likely keeping some crude oil cargoes intended for exports in floating storageuntil it finds buyers for the cargoes.
Source: U.S. Energy Information Administration, Short-Term Energy Outlook, and Clipper Data Inc.
A series of ongoing nationwide power outages in Venezuela that began on March 7 cut electricity to the country's oil-producing areas, likely damaging the reservoirs and associated infrastructure. In the Orinoco Oil Belt area, Venezuela produces extra-heavy crude oil that requires dilution with condensate or other light oils before the oil is sent by pipeline to domestic refineries or export terminals. Venezuela’s upgraders, complex processing units that upgrade the extra-heavy crude oil to help facilitate transport, were shut down in March during the power outages.
If Venezuelan crude or upgraded oil cannot flow as a result of a lack of power to the pumping infrastructure, heavier molecules sink and form a tar-like layer in the pipelines that can hinder the flow from resuming even after the power outages are resolved. However, according to tanker tracking data, Venezuela's main export terminal at Puerto José was apparently able to load crude oil onto vessels between power outages, possibly indicating that the loaded crude oil was taken from onshore storage. For this reason, EIA estimates that Venezuela's production fell at a faster rate than its exports.
EIA forecasts that Venezuela's crude oil production will continue to fall through at least the end of 2020, reflecting further declines in crude oil production capacity. Although EIA does not publish forecasts for individual OPEC countries, it does publish total OPEC crude oil and other liquids production. Further disruptions to Venezuela's production beyond what EIA currently assumes would change this forecast.
Headline crude prices for the week beginning 13 May 2019 – Brent: US$70/b; WTI: US$61/b
Headlines of the week
Midstream & Downstream
The world’s largest oil & gas companies have generally reported a mixed set of results in Q1 2019. Industry turmoil over new US sanctions on Venezuela, production woes in Canada and the ebb-and-flow between OPEC+’s supply deal and rising American production have created a shaky environment at the start of the year, with more ongoing as the oil world grapples with the removal of waivers on Iranian crude and Iran’s retaliation.
The results were particularly disappointing for ExxonMobil and Chevron, the two US supermajors. Both firms cited weak downstream performance as a drag on their financial performance, with ExxonMobil posting its first loss in its refining business since 2009. Chevron, too, reported a 65% drop in the refining and chemicals profit. Weak refining margins, particularly on gasoline, were blamed for the underperformance, exacerbating a set of weaker upstream numbers impaired by lower crude pricing even though production climbed. ExxonMobil was hit particularly hard, as its net profit fell below Chevron’s for the first time in nine years. Both supermajors did highlight growing output in the American Permian Basin as a future highlight, with ExxonMobil saying it was on track to produce 1 million barrels per day in the Permian by 2024. The Permian is also the focus of Chevron, which agreed to a US$33 billion takeover of Anadarko Petroleum (and its Permian Basin assets), only for the deal to be derailed by a rival bid from Occidental Petroleum with the backing of billionaire investor guru Warren Buffet. Chevron has now decided to opt out of the deal – a development that would put paid to Chevron’s ambitions to match or exceed ExxonMobil in shale.
Performance was better across the pond. Much better, in fact, for Royal Dutch Shell, which provided a positive end to a variable earnings season. Net profit for the Anglo-Dutch firm may have been down 2% y-o-y to US$5.3 billion, but that was still well ahead of even the highest analyst estimates of US$4.52 billion. Weaker refining margins and lower crude prices were cited as a slight drag on performance, but Shell’s acquisition of BG Group is paying dividends as strong natural gas performance contributed to the strong profits. Unlike ExxonMobil and Chevron, Shell has only dipped its toes in the Permian, preferring to maintain a strong global portfolio mixed between oil, gas and shale assets.
For the other European supermajors, BP and Total largely matched earning estimates. BP’s net profits of US$2.36 billion hit the target of analyst estimates. The addition of BHP Group’s US shale oil assets contributed to increased performance, while BP’s downstream performance was surprisingly resilient as its in-house supply and trading arm showed a strong performance – a business division that ExxonMobil lacks. France’s Total also hit the mark of expectations, with US$2.8 billion in net profit as lower crude prices offset the group’s record oil and gas output. Total’s upstream performance has been particularly notable – with start-ups in Angola, Brazil, the UK and Norway – with growth expected at 9% for the year.
All in all, the volatile environment over the first quarter of 2019 has seen some shift among the supermajors. Shell has eclipsed ExxonMobil once again – in both revenue and earnings – while Chevron’s failed bid for Anadarko won’t vault it up the rankings. Almost ten years after the Deepwater Horizon oil spill, BP is now reclaiming its place after being overtaken by Total over the past few years. With Q219 looking to be quite volatile as well, brace yourselves for an interesting earnings season.
Supermajor Financials: Q1 2019