Nine Alumni from the 2013 Edition of Young ADIPEC Will Return for 2017 to Share Their Experiences with Today’s High School Students
Over 1,500 High School Students Have Participated in the Young ADIPEC Programme Since Its Inception in 2013
Young ADIPEC Alumni Studying for University Degrees in Geoscience and Engineering
Abu Dhabi, UAE – 28 September 2017 – Nine young Emiratis, who took part in the very first Young ADIPEC Programme of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), will be returning to this year’s event to encourage others to follow in their footsteps as they launch their careers.
The students, who were all part of the first edition of Young ADIPEC in 2013, will attend the 2017 edition as part of a new Young ADIPEC Alumni initiative. They will speak at the Young ADIPEC Forum – a series of TED-style talks designed to engage and inspire young people to pursue energy-related careers – with panellists sharing the experiences that influenced their educational choices, as well as their hopes for the future.
Each of the students credits Young ADIPEC with helping them make a positive choice at a time when they were unsure about which path to take in life.
“In 2013, before participating in the Young ADIPEC programme, I had no idea what engineering was,” said Alreem Alhammadi, who is now a chemical engineering student at the Petroleum Institute. “I never thought I would end up where I am today, so I am truly thankful to this programme. It directed me towards this path which I certainly like and enjoy.”
More than 1,500 school students from across the UAE have passed through the programme since its launch four years ago, and many have chosen a career in the petroleum sector after attending the event. Notably, two-thirds of them are girls, a positive sign for an industry in which women are significantly underrepresented worldwide.
Young ADIPEC features a comprehensive programme of field trips, talks and game-based activities, to help participants discover the range of career paths available to them in the oil and gas industry. Participants are UAE nationals aged 14 to 17, and the programme is built around the concept of ‘edutainment’ and encouraging students to ‘learn by doing’.
Of the nine university students giving ADIPEC Alumni talks, six are studying at the Petroleum Institute in Abu Dhabi, pursuing degrees in geoscience, mechanical, chemical and petroleum engineering. Another is taking mechanical engineering at Khalifa University of Science and Technology. The remaining participants are studying chemical engineering in North America: one in the United States at Northeastern University in Boston, and the other at Canada’s University of Ottawa.
“I was late choosing my degree major when Young ADIPEC 2013 gave me the opportunity to go on a field trip to Schlumberger,” said Saeed Khoury, who is studying chemical engineering at Northeastern University. “I was enlightened about the future requirements in UAE, and the focused vision toward engineering and technologies. The Young ADIPEC Programme directed me to my future career. Now, I am doing my best to learn some skills and gain knowledge which I can use to serve my country.”
Returning for its fifth edition in 2017, Young ADIPEC is built on close collaboration between educators and business leaders. Support from the industry has been critical to its success, with oil and gas companies demonstrating the range of opportunities available to young Emiratis.
“Young ADIPEC is a valuable opportunity for oil and gas firms to engage talented recruits – today,” said Ali Khalifa Al Shamsi, CEO of Al Yasat Petroleum Operations Company and ADIPEC 2017 Chairman.
“Feedback from past participants proves the scheme is an effective motivational tool, with many saying the scheme opened their eyes as to the breadth and diversity of careers within the sector. For firms that recruit recent graduates or offer internships, the programme is very worthwhile.”
International companies taking part in Young ADIPEC include ExxonMobil and Shell; oilfield services companies Schlumberger, Weatherford International, and Ali & Sons Oilfield Supplies and Services; and plastics producer Borouge.
Abu Dhabi-based companies include oil refiners Abu Dhabi Oil Refining Company (Takreer); engineering firm Almansoori; and exploration, development and production specialist Abu Dhabi Company for Onshore Petroleum Operations Ltd., (ADCO). The public sector is also represented by the UAE Ministry of Energy, and Mubadala Petroleum, the exploration and production subsidiary of government-owned global investment firm Mubadala Investment Company.
Young ADIPEC takes place annually under the patronage of His Excellency Sheikh Nahyan Bin Mubarak Al Nahyan, Minister of Culture and Knowledge Development, with support from the Department of Education and Knowledge – previously Abu Dhabi Education Council (ADEC).
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 is one of the world’s leading oil and gas events, and the largest in Africa and the Middle East.
ADIPEC will be held at Abu Dhabi National Exhibition Centre from 13 to 16 November 2017.
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To learn more about The Young ADIPEC Photography Competition, email [email protected]
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:
Senior Marketing Manager, DMG Events Global Energy
Twofour54, Park Rotana Offices, 6th Floor
PO Box 769256, Abu Dhabi, UAE
T: +971 (0)2 6970 515
T: +971 4 275 4100
Mark Robinson (English): +971 (0)55 127 9764
Feras Hamzah (Arabic): +971 (0)50 798 4784
For more info: http://www.adipec.com/
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Headline crude prices for the week beginning 18 March 2019 – Brent: US$67/b; WTI: US$58/b
Headlines of the week
Midstream & Downstream
Risk and reward – improving recovery rates versus exploration
A giant oil supply gap looms. If, as we expect, oil demand peaks at 110 million b/d in 2036, the inexorable decline of fields in production or under development today creates a yawning gap of 50 million b/d by the end of that decade.
How to fill it? It’s the preoccupation of the E&P sector. Harry Paton, Senior Analyst, Global Oil Supply, identifies the contribution from each of the traditional four sources.
1. Reserve growth
An additional 12 million b/d, or 24%, will come from fields already in production or under development. These additional reserves are typically the lowest risk and among the lowest cost, readily tied-in to export infrastructure already in place. Around 90% of these future volumes break even below US$60 per barrel.
2. pre-drill tight oil inventory and conventional pre-FID projects
They will bring another 12 million b/d to the party. That’s up on last year by 1.5 million b/d, reflecting the industry’s success in beefing up the hopper. Nearly all the increase is from the Permian Basin. Tight oil plays in North America now account for over two-thirds of the pre-FID cost curve, though extraction costs increase over time. Conventional oil plays are a smaller part of the pre-FID wedge at 4 million b/d. Brazil deep water is amongst the lowest cost resource anywhere, with breakevens eclipsing the best tight oil plays. Certain mature areas like the North Sea have succeeded in getting lower down the cost curve although volumes are small. Guyana, an emerging low-cost producer, shows how new conventional basins can change the curve.
3. Contingent resource
These existing discoveries could deliver 11 million b/d, or 22%, of future supply. This cohort forms the next generation of pre-FID developments, but each must overcome challenges to achieve commerciality.
Last, but not least, yet-to-find. We calculate new discoveries bring in 16 million b/d, the biggest share and almost one-third of future supply. The number is based on empirical analysis of past discovery rates, future assumptions for exploration spend and prospectivity.
Can yet-to-find deliver this much oil at reasonable cost? It looks more realistic today than in the recent past. Liquids reserves discovered that are potentially commercial was around 5 billion barrels in 2017 and again in 2018, close to the late 2030s ‘ask’. Moreover, exploration is creating value again, and we have argued consistently that more companies should be doing it.
But at the same time, it’s the high-risk option, and usually last in the merit order – exploration is the final top-up to meet demand. There’s a danger that new discoveries – higher cost ones at least – are squeezed out if demand’s not there or new, lower-cost supplies emerge. Tight oil’s rapid growth has disrupted the commercialisation of conventional discoveries this decade and is re-shaping future resource capture strategies.
To sustain portfolios, many companies have shifted away from exclusively relying on exploration to emphasising lower risk opportunities. These mostly revolve around commercialising existing reserves on the books, whether improving recovery rates from fields currently in production (reserves growth) or undeveloped discoveries (contingent resource).
Emerging technology may pose a greater threat to exploration in the future. Evolving technology has always played a central role in boosting expected reserves from known fields. What’s different in 2019 is that the industry is on the cusp of what might be a technological revolution. Advanced seismic imaging, data analytics, machine learning and artificial intelligence, the cloud and supercomputing will shine a light into sub-surface’s dark corners.
Combining these and other new applications to enhance recovery beyond tried-and-tested means could unlock more reserves from existing discoveries – and more quickly than we assume. Equinor is now aspiring to 60% from its operated fields in Norway. Volume-wise, most upside may be in the giant, older, onshore accumulations with low recovery factors (think ExxonMobil and Chevron’s latest Permian upgrades). In contrast, 21st century deepwater projects tend to start with high recovery factors.
If global recovery rates could be increased by a percentage or two from the average of around 30%, reserves growth might contribute another 5 to 6 million b/d in the 2030s. It’s just a scenario, and perhaps makes sweeping assumptions. But it’s one that should keep conventional explorers disciplined and focused only on the best new prospects.
Global oil supply through 2040
Things just keep getting more dire for Venezuela’s PDVSA – once a crown jewel among state energy firms, and now buried under debt and a government in crisis. With new American sanctions weighing down on its operations, PDVSA is buckling. For now, with the support of Russia, China and India, Venezuelan crude keeps flowing. But a ghost from the past has now come back to haunt it.
In 2007, Venezuela embarked on a resource nationalisation programme under then-President Hugo Chavez. It was the largest example of an oil nationalisation drive since Iraq in 1972 or when the government of Saudi Arabia bought out its American partners in ARAMCO back in 1980. The edict then was to have all foreign firms restructure their holdings in Venezuela to favour PDVSA with a majority. Total, Chevron, Statoil (now Equinor) and BP agreed; ExxonMobil and ConocoPhillips refused. Compensation was paid to ExxonMobil and ConocoPhillips, which was considered paltry. So the two American firms took PDVSA to international arbitration, seeking what they considered ‘just value’ for their erstwhile assets. In 2012, ExxonMobil was awarded some US$260 million in two arbitration awards. The dispute with ConocoPhillips took far longer.
In April 2018, the International Chamber of Commerce ruled in favour of ConocoPhillips, granting US$2.1 billion in recovery payments. Hemming and hawing on PDVSA’s part forced ConocoPhillips’ hand, and it began to seize control of terminals and cargo ships in the Caribbean operated by PDVSA or its American subsidiary Citgo. A tense standoff – where PDVSA’s carriers were ordered to return to national waters immediately – was resolved when PDVSA reached a payment agreement in August. As part of the deal, ConocoPhillips agreed to suspend any future disputes over the matter with PDVSA.
The key word being ‘future’. ConocoPhillips has an existing contractual arbitration – also at the ICC – relating to the separate Corocoro project. That decision is also expected to go towards the American firm. But more troubling is that a third dispute has just been settled by the International Centre for Settlement of Investment Disputes tribunal in favour of ConocoPhillips. This action was brought against the government of Venezuela for initiating the nationalisation process, and the ‘unlawful expropriation’ would require a US$8.7 billion payment. Though the action was brought against the government, its coffers are almost entirely stocked by sales of PDVSA crude, essentially placing further burden on an already beleaguered company. A similar action brought about by ExxonMobil resulted in a US$1.4 billion payout; however, that was overturned at the World Bank in 2017.
But it might not end there. The danger (at least on PDVSA’s part) is that these decisions will open up floodgates for any creditors seeking damages against Venezuela. And there are quite a few, including several smaller oil firms and players such as gold miner Crystallex, who is owed US$1.2 billion after the gold industry was nationalised in 2011. If the situation snowballs, there is a very tempting target for creditors to seize – Citgo, PDVSA’s crown jewel that operates downstream in the USA, which remains profitable. And that would be an even bigger disaster for PDVSA, even by current standards.
Infographic: Venezuela oil nationalisation dispute timeline