NrgEdge Editor

Sharing content and articles for users
Last Updated: January 31, 2018
435 views
Business Trends
image

NrgEdge interviews Dr Mazlan Madon who is an independent geologist. He is also involve as a member of Commission on the Limits of the Continental Shelf and Academy of Sciences Malaysia. A passionate geologist with vast experience, Dr Mazlan Madon is considered among the top Geology experts.


uploads1517366164957-Dr+Mazlan+Madon+Nrgtalk+edited.jpg


1) You are someone who has taken up many geologist position with Petronas over the years. Are you able to share with us what kept your passion burning in order for you to be in the industry for more than 30 years?

I consider the many positions that I was appointed to during my service with Petronas were merely following the “natural” course of a career progression, starting as a trainee geologist in 1984 to the penultimate technical position of “Custodian” in 2007. Since then I had held various Custodian positions within different parts of the organisation, doing slightly different things but essentially the same role. Whether one considers a span of 23 years to reach the “top” to be slow, ‘average’, or fast, is a different question altogether. I think, for me to have stayed in the same industry for more than 30 years is not unusual, especially in the oil/gas industry. A more interesting question that people often asked is what kept me going for so long in the same company. The simple answer is my passion for geology. It is fair to say that I care more about geology as a science than its application to oil/gas exploration, because in a way, passion for the science is more everlasting than one’s love for exploration (which tend to emulate the oil price).

2) During your years with Petronas, you wrote a book titled “Petroleum Geology and Resources of Malaysia” which was the main source of reference for the petroleum geologist within the region. What was the factor that inspired or influenced you to write this book? 

To be clear, the book was a team effort, and was a deliberate initiative by the management of Petronas at the time, to share the knowledge gained through decades of oil exploration in the country, with not just the oil industry people but the public at large. So a team was assembled and headed by a project manager/chief editor, and I was lucky to be called in by my boss to work full-time on it, along with two other people. It was 1996, and I had just re-joined the company after finishing my PhD studies and I think the momentum helped, because there was an enormous amount of documents I had to go through in order to provide a balanced view of the geology of each basin or province in Malaysia, based on the knowledge at that time. I was also fully aware that as an author I also represent, in some way, a Petronas ‘view’ of the geological understanding at that time.

3) As we know, you are a member of the Commission on the Limits of the Continental Shelf (CLCS), a body of experts established under the UN Convention on the Law of the Sea (UNCLOS). Are you able to tell us more on this position?

The CLCS consists of 21 members elected every 5 years from among the nationals of countries (coastal State) that ratify the UNCLOS. So, I was nominated by the Malaysian government to serve in that commission, but I serve in my personal capacity. Members of CLCS are experts in either hydrography, geology or geophysics. Under article 76 of UNCLOS, a coastal State may submit to the CLCS particulars relating to the limits of the continental shelf beyond 200 nautical miles. The main role of the CLCS then is to consider the data and information submitted by the coastal State in the justification to extend its continental shelf beyond 200 nautical miles.

4) The world is constantly evolving, and new technologies have been given birth in the recent years. What are the most impactful technologies you feel that had greatly aid geologists or explorers like yourself in terms of new field research and development?

There is no doubt that as far as the oil exploration/development is concerned, seismic technologies have contributed immensely to the success of the business. On the flip side, it could be argued that because seismic has been so successful as a body of technology, some managers became over-reliant on it while inadvertently neglecting the fact that a brilliant technology still requires competent humans to use it. Besides seismic, an overarching factor in the industries’ success is the rapid development of computers. I still remember using floppy disks on DOS-based PCs when I started in 1984 and when the internet was still at a very rudimentary stage. Look where we are now due to the power of computers.

5) With fewer oil companies investing in exploring new oil fields in the current oil price climate, do you think this is a short-sighted move? Also how do you see the market picking-up again in terms of new exploration projects in this region?

I think it is just a normal business practice to cut back on exploration when the oil price is low, but how high exploration is going to bounce back depends on our appetite for new ideas and new plays. Bear in mind, activity was already at a low level in the traditionally mature regions, not because of the oil price but due to the higher risks and unfavourable economics.

6) In the current low oil price climate, a lot of exploration projects have been put on-hold. This has inadvertent lowered the demand for new geology talents. What are the options available for those who are specialised in this discipline? Are their skills transferrable?

It is not entirely true, or wise to assume, that due to less exploration projects, there is lower demand for “new geology talents”. I would say, less exploration projects may see less need for that many operations geologists but the company would need to do more “research” to prepare for the next wave. In any case, new talents would not be put straight onto exploration projects because there is a lag time between a new talent coming in and when he/she is ready to be deployed to the projects.

7) In today’s world, everything is going digital, even learning. Digital learning for geologists in Oil & Gas is now possible with e-courses, live webinars and even virtual field trips! Do you think geologist today are adapting to these new platform effectively? What do you think are the possible barriers preventing these new learning technologies from flourishing further, if they are indeed effective learning methods?

I am not worried about young people adapting to new platform. But I am not sure that they are able to absorb all the knowledge that is made available to them, in a way that will make them more productive in their work, bearing in mind their already busy day-to-day work schedule. My guess is that most people will have some spare time for one or two ‘extra-curricular’ endeavours outside of their ‘normal’ work. If those courses are remotely relevant to their work, it would not be an effective learning tool.

8) As we know, you came out with publications throughout your career. For now, you have retired, hence, will you continue publishing geology related publications to aid/educate other geology enthusiast?

Unlike a manager who loses his power and privileges upon retirement, a scientist never truly retires. When I retired, they took away my company laptop, but I could still write. I consider writing technical articles as one of the two most important tasks for a scientist. The other one is reading. Writing is the best way to articulate one’s thoughts and understanding of a particular subject in the vast field of geoscience. It is erroneous to think that a geologist who happens to work in oil and gas must write only on petroleum geology. A musician does not have to just play the blues. So, yes I will do my best to continue to write and publish articles of interest.

9) As an industry expert, you have had considerable experience as a geologist/geoscientist. For someone who’s just beginning their career in the industry, what advice can you give him or her? Do you feel that youths today have more opportunities to nurture their passion and what life lessons are you able to share with them?

I don’t consider myself an industry expert, but a geology or geosciences expert, maybe. So my only advice would be: to be honest in what you do, seek knowledge as truth, not half-truths, and not because your boss wants to hear it, but because you need to understand it yourself. Yes, young people are given ample opportunities, but they take too much time to decide what part of geoscience they like, before they can move forward in their career. Geoscience is a vast subject, with many inter-related sub-disciplines and topics. The problem in the way our industry has developed is to steer young people to want to do a very small part of geoscience, without wanting to or make it necessary to have a broader knowledge of the science. The result is a so-called ‘specialist’ but ironically with very little depth in understanding and lacking a broader appreciation of the scientific implications.

10) May I know what was the book you wrote that gained recognition? Are you able to elaborate more about this recognition and book? Do you think that the new generation can contribute in future?

It was not a book I wrote. In 2017, the AAPG, as part of its 100th year celebration, wanted to publish a book, “The Heritage of the Petroleum Geologist” which is a sequel to its 2002 publication of the same name, which had honoured 43 “pioneering and notable geologists” for their contribution to the profession.  So, what AAPG did was to invite another 58 “accomplished and distinguished” geologists to make the total number of honourees 101, symbolic of 100 for the centennial celebrations plus 1 additional individual “to symbolize the passing of our deep heritage to the next generation of energy-finders”. Like all the other honorees, I was asked to contribute two pages of my “achievements, disappointments, anecdotes, advice” for the next generation, and was lucky to be chosen as one of the 101 honorees at the AAPG Convention 2017 in Houston last April.

Of course, the new (meaning younger) generation can contribute, but they must do it with sincerity, honesty and passion. I was once young too, and came into geology by chance, like many geologists I know. In order to make meaningful contribution, people often say, we must be “passionate” about our work. The word “passionate” has been used a lot by managers during my time when they were trying to motivate the youngsters. But passion takes time to develop, and you cannot fake it. You have to first “like” what you’re doing, before you can be “passionate” about it. When you are young, you wouldn’t know where the career would take you, until you are really deep into the subject and develop a kind of “passion”. You cannot be passionate if you don’t know enough about the subject or the work that you’re doing.
By “contribution”, I take that you mean contribution to geology, as a science and as a profession. The new generation can contribute to the science of geology by learning as much as they could, mainly by themselves, through reading and writing. After all, scientific knowledge grows from the ideas generated and written by scientists for people to read. Knowledge not shared is not knowledge. Attending conferences, making presentations, and writing technical papers are all part of the contribution to scientific knowledge but not all of it. For the geological profession, the new generation should join a scientific organization or geological society where they can interact with their peers as well as with other scientists and even students to share experiences and learn from them. These can be done in many ways, from organizing seminars, workshops, field trips to formal training sessions. Nowadays, there seem to be a lack of interest in joining scientific societies, like the Geological Society, for geologists, when especially in the petroleum industry wherein the perception is that all the knowledge and training are available within the industry or company and so joining a scientific society does not bring any benefit. I think this perception and attitude need to change. Contribution to geology and to the geological profession is not, and should not be, limited to making money for the oil companies, but also for the benefit of society at large.


11) With your intention to do a forum discussion, how will you work with us in terms of moderating those discussion at our NrgGuru section?

As I understand it, NrgGuru is a platform for users to ask questions relating to the oil and gas industry. In that regard, I will try to answer mainly questions that relate to my own knowledge and experiences, and leave other questions for other experts.


Sign up on NrgEdge to read more articles like these and get connected with oil, gas and energy industry influencers! 

Visit: https://goo.gl/a36LfT

nrgedge oil and gas interview influencer nrgtalk business
3
7 0

Something interesting to share?
Join NrgEdge and create your own NrgBuzz today

Latest NrgBuzz

Oil and Gas Salary In Malaysia: What to Expect?

Malaysia has the fourth largest oil and gas reserve in Southeast Asia and produces a whopping 30,000 megawatts of energy per year. The country continues to be hopeful about the prospects of its oil & gas industry and expects it to contribute meaningfully towards the growth of its economy. But then again, what does it mean for the employees who are working in the industry or plan to enter it? Is it a profitable industry in terms of salary growth and expectations? Let’s figure out what the industry holds for its employees and job seekers of oil and gas jobs in Malaysia.

What does the number say?

The best way to analyze the oil and gas job sector is to look at the recent studies and research conducted, which can give a substantial view into the future of the industry. As per the statistics department, Malaysia saw 8.1% growth in the salary in 2017 amounting to RM 2880 as compared to 2016, in which the average salary recorded was RM 2657. Additionally, the chief statistician of the department, Datuk Seri Dr Mohd Uzir Mahidin, said that an increase in the mean monthly salary and also the wages are in sync with the country’s economic performance. Even the exports indicated to grow by 20.3% which amounts to RM935.5bil. He made these observations based on the results of Salaries and Wages Survey 2017 of oil and gas professionals and entry-level oil and gas job seekers.

What the number means for prospects of oil and gas salary in Malaysia

If the above data is viewed on a sectoral basis, then the mining and quarrying sector indicated the highest monthly salaries as well as wages, which amounted to a mean of RM5,709 and a median of RM3,700.

Datuk Seri Dr Mohd Uzir Mahidin, further added that capital-intensive industries like the oil and gas, which is a major part of mining and quarrying sector, employs professionals, who are highly skilled and hence a bigger paycheck and higher mean and median salary.

The observation made by the chief statistician gets further backing by an online job site’s employment index. Although, it shows a decrease of 11% in May 2018 for the hiring activities in comparison to the previous year. However, it pointed towards a steep growth in the Oil & Gas sector. The hiring activity went up by 14% year-on-year in May 2018.

What can be the salary expectations for energy professionals?

The above studies and research indicate a positive outlook for both upstream and downstream players of this sector. However, it is important to note that a lot of factors help to determine your salary potential, which includes: education, years of experience, expertise, work ethics, job location, skill set and so on.

As per payscale.com, a Petroleum Engineer can earn on an average RM 104,343 per year. Which means an average salary of RM 99,803 with an estimated average bonus of RM 22,500 and profit sharing of RM 5120. Your experience and education play a major role in determining your salary. Similarly, in oil and gas industry, the average salary of a mechanical engineer amounts to RM 72,000 whereas the average salary of Account is RM 82,248 and for Project Engineer is RM 57,000 while a sales manager has the potential of RM 120,000.

Since the industry prefers professionals with high-level skills in the respective areas, it is advisable to enhance your overall employability factors to enjoy higher compensation and perks. And also use oil and gas professional networks to your advantage in getting the desired contacts and opportunities.

August, 17 2018
Your Weekly Update: 13 - 17 August 2018

Market Watch

Headline crude prices for the week beginning 13 August 2018 – Brent: US$72/b; WTI: US$67/b

  • Turbulence continues to buffet crude oil prices, which are being caught in between short- and long-term supply concerns and external turmoil.
  • This week, the Turkish lira went into meltdown, with the contagion spreading over to other emerging currencies, including India and Indonesia; conversely, the dollar is also strengthening, placing pressure on barrels.
  • With a full month of data after the OPEC+ resolution in June, OPEC crude production for July rose by 41,000 b/d to 32.32 mmb/d, despite declines in Libya, Iran and Saudi Arabia. That’s below its 1 mmb/d increase target, and with Iranian sanctions looming, meeting that target could be challenging.
  • On the Iran situation, the US appears to have accepted that it will not be able to reduce Iranian crude exports ‘to zero’. Instead, the Trump administration is now aiming to cut Iranian volumes by half, which would be in the 700,000 kb/d to 1 mmb/d range.
  • The Trump administration is also walking back on its previous hardline stance, announcing that it would consider partial exemption from oil sanctions against Iran for some countries, which could see Total not giving up its cherished stake in the South Pars 11 project to CNPC.
  • Meanwhile in China, the new Shanghai crude futures launched in March seems to be marching to the beat of its own drum, advancing almost 5% over the first half of August against declines in Brent and WTI, the possible result of speculative activity that could diminish its potential to be a benchmark.
  • In the US, a weak trend in prices did not dissuade American drillers from adding 10 new oil rigs and 3 new gas rigs – the single largest jump in the weekly active rig count since May. The EIA is also reporting increase output at major shale plays, expecting output to rise to 7.52 mmb/d in September and bringing the US closer to the 12 mmb/d mark.
  • Crude price outlook: The persistence of a strong dollar is likely to mitigate any upward rise in oil prices, although uncertainty over trade, tariffs and Turkey could pull prices up. We expect Brent to trade at US$70-72/b and WTI at US$64-66/b.

Headlines of the week

Upstream

  • India’s Ministry of Petroleum and Natural Gas has launched its DSF Bid Round II, with 60 discoveries clubbed into 26 new contract areas located in ‘large, commercially-producing basins’.
  • Quadrant Energy and Carnarvon Petroleum has announced a major onshore oil find in Western Australia (WA), describing the Dorado as a ‘truly incredible’ reservoir that could hold some 150 million barrels of oil – which would make it the largest oil find in WA over the last 20 years.
  • Pakistan is teasing a ‘big cache’ of oil discovered by ExxonMobil and Eni in the offshore Block G, located off the Indus Delta.
  • Mozambique has finally handed out contracts for oil concessions that were awarded in 2015, allowing companies like Statoil, Eni, ExxonMobil and Sasol to begin exploring in the oil-rich Northern Zambezi basin.

Downstream

  • Vietnam’s second refinery, the 200 kb/d Nghi Son site, expects to reach full capacity in September as it begins to apply for export permits to trim down Vietnam’s existing high levels of (imported) oil products.
  • Faced with rising inflation, the Energy Ministry of the Philippines has asked oil companies to switch back to selling cheaper Euro II-standard diesel, backtracking from the Euro II standards implemented in 2016.
  • Mexico’s largest oil refinery, Pemex’s 330 kb/d Salina Cruz site, managed to restart operations two days after a power outage halted production.
  • The ambitious 650 kb/d Dangote refinery planned in Nigeria by Africa’s richest man is likely to miss its target start date of 2020, with sources stating that operations could only begin in 2022 at the earliest.
  • A major fire broke out at BPCL’s 120 kb/d Maharashtra refinery, forcing the shutdown of a hydrocracker as 40 people were injured.
  • India is aiming to save up to US$1.7 billion in oil imports by 2022 and reduce its carbon emissions through increased usage of biofuels, announcing plans to build 12 bio-refineries that will run on crop, plant waste and municipal waste.

Natural Gas/LNG

  • Exports from Yamal LNG’s second train have begun with the first shipment leaving the port of Sabetta, doubling the project’s capacity to 11 mtpa.
  • Cheniere and CPC have signed a 25-year long term deal where the Taiwanese firm will take 2 million tpa of LNG beginning 2021.
  • American LNG firm Tellurian confirmed that it is on track to begin construction of its US$27.5 billion Driftwood LNG terminal in Louisiana in 1H19, with operations planned for a 2023 start.
  • Santos is reporting a ‘significant gas field’ at its Barikewa-3 well onshore in Papua New Guinea, in the prodigious Toro and Hedinia reservoirs.
  • Tanzania is planning to build a natural gas pipeline that would run through Uganda, delivering gas harvesting from offshore Tanzania through Dar es Salaam and Tanga, then crossing over to Uganda via Lake Victoria.

Corporate

  • Apache and Kayne Anderson Acquisition Corp are forming Altus Midstream, a US$3.5 billion pipeline joint venture focusing on the Permian.
  • Kosmos Energy has acquired Deep Gulf Energy for US$1.23 bn, expanding its presence in the Gulf of Mexico and doubling output to 70,000 boe/d.
August, 16 2018
U.S. refineries running at near-record highs

U.S. gross refinery inputs

Source: U.S. Energy Information Administration, Weekly Petroleum Status Report

For the week ending July 6, 2018, the four-week average of U.S. gross refinery inputs surpassed 18 million barrels per day (b/d) for the first time on record. U.S. refineries are running at record levels in response to robust domestic and international demand for motor gasoline and distillate fuel oil.

Before the most recent increases in refinery runs, the last time the four-week average of U.S. gross refinery inputs approached 18 million b/d was the week of August 25, 2017. Hurricane Harvey made landfall the following week, resulting in widespread refinery closures and shutdowns along the U.S. Gulf Coast.

Despite record-high inputs, refinery utilization as a percentage of capacity has not surpassed the record set in 1998. Rather than higher utilization, refinery runs have increased with increased refinery capacity. U.S. refinery capacity increased by 862,000 barrels per calendar day (b/cd) between January 1, 2011, and January 1, 2018.

The record-high U.S. input levels are driven in large part by refinery operations in the Gulf Coast and Midwest regions, the Petroleum Administration for Defense Districts (PADDs) with the most refinery capacity in the country. The Gulf Coast (PADD 3) has more than half of all U.S. refinery capacity and reached a new record input level the same week as the record-high overall U.S. capacity, with four-week average gross refinery inputs of 9.5 million b/d for the week ending July 6. The Midwest (PADD 2) has the second-highest refinery capacity, and the four-week average gross refinery inputs reached a record-high 4.1 million b/d for the week ending June 1.

Gulf Coast and Midwest gross refinery inputs


U.S. refineries are responding currently to high demand for petroleum products, specifically motor gasoline and distillate. The four-week average of finished motor gasoline product supplied—EIA’s proxy measure of U.S. consumption—typically hits the highest level of the year in August. Weekly data for this summer to date suggest that this year’s peak in finished motor gasoline product supplied is likely to match that of 2016 and 2017, the two highest years on record, at 9.8 million b/d. The four-week average of finished motor gasoline product supplied for the week ending August 3, 2018, was at 9.7 million b/d.

U.S. distillate consumption, again measured as product supplied, is also relatively high, averaging 4.0 million b/d for the past four weeks, 64,000 b/d lower than the five-year average level for this time of year. In addition to relatively strong domestic distillate consumption, U.S. exports of distillate have continued to increase, reaching a four-week average of 1.2 million b/d as of August 3, 2018. For the week ending August 3, 2018, the four-week average of U.S. distillate product supplied plus exports reached 5.2 million b/d.

In its August Short-Term Energy Outlook (STEO), EIA forecasts that U.S. refinery runs will average 16.9 million b/d and 17.0 million b/d in 2018 and 2019, respectively. If achieved, both would be new record highs, surpassing the 2017 annual average of 16.6 million b/d.

August, 14 2018