Technology entrepreneurship redefining global energy game

Posted on 23 May 2012

Energy expert Joseph Stanislaw said technology is fundamentally changing the global energy game, in a presentation at the Deloitte Energy Conference in Washington, DC, this week.

The ongoing technology boom that is reshaping the oil and gas industry and providing access to resources once deemed unattainable is also redefining the global energy map, an energy expert said in an address at the Deloitte Energy Conference on 21-22 May in Washington, DC.

“It’s not about the resources; it’s about the technology to access the resources,” said Dr Joseph Stanislaw , independent senior adviser at Deloitte and a co-founder and former CEO of Cambridge Energy Research Associates. His whitepaper, “Next Frontiers: How Technology is Radically Reshaping Supply, Demand & the Energy of Geopolitics,” examines various aspects of the changing global energy landscape. “In the case of unconventional shales, for example, we’ve known about them for decades or longer, but technology is what has made those resources real,” he said. “Technology is the value-creator.”

Advanced hydraulic fracturing technologies and horizontal drilling methods have made the US the No. 1 producer in the world, with natural gas from shale accounting for more than 30% of US natural gas production, compared with just 2% in 2001, he noted.

Energy companies now rank among the most important and sophisticated technology companies in the world, Dr Stanislaw said. “The modern-day wildcatters are energy-technology entrepreneurs – geoscientists and software engineers – who  drill wells on computer screens before drilling in the field.  Three-dimensional computer imaging, along with new steel alloys for drill bits and other innovations are radically changing energy development production.”

New players to the game

Key developments, Dr Stanislaw noted, include the arrival of dozens of new energy-rich countries such as Brazil, the Philippines, Argentina, Angola and Suriname, Poland and Israel to the international energy scene, as well as the expanding role of energy in on geopolitics. “No change may be more important than the introduction into the energy game of dozens of new players, including reinforced superpowers like Brazil, Canada and Russia.

“Areas with high resource potential have gone from being easy to develop to difficult, and the situation in those countries will remain difficult,” Dr Stanislaw continued.  “But the more we push the resource horizon to those areas, there will be openings for companies with the technology.”

Argentina, for example, a country with huge reserves of tight shale gas and oil, recently renationalized its energy company YPF. “But that company can’t develop those resources on its own,” he pointed out. “China is holding blind positions in US shale plays to try and learn about the technology.”

Dr Stanislaw believes the biggest challenges for the industry lie in ultra-deepwater areas such as Brazil, East and West Africa, and the Gulf of Mexico, and in the Arctic. “The Arctic will become a bigger province over time because there is a large resource base there. We have not touched the onshore reserves yet; that’s maybe a decade away. We need to consider developing the technology to access those resources in an environmentally safe and appropriate way.” He also believes it is important to use resources such as water to produce oil and gas more efficiently.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 19 September 2014

    Video: Standardized communication key to progress of automation

    As automation technologies develop, it’s critical for the industry to establish standardized means of communication and terminology, John Berra, former Chairman of Emerson...

  • 19 September 2014

    Video: Gene Facey receives IADC Exemplary Service Award

    Gene Facey, a passionate volunteer and representative of the offshore drilling industry, recently was recognized with an IADC Exemplary Service Award. Stephen Colville, IADC...

  • 19 September 2014

    Video: NOV developing device to provide real-time drill string, wellbore data while tripping

    National Oilwell Varco (NOV) is expanding the efficiency and safety benefits of wired drill pipe to tripping activities. Brian Van Burkleo, Business Development...

  • 19 September 2014

    Video: IADC ART Subcommittee evaluating cyber security standards for drilling contractors

    The IADC Advanced Rig Technology (ART) Committee’s Drilling Control Systems (DCS) Subcommittee was created to provide information and guidelines to improve safety...

  • 19 September 2014

    ExxonMobil to add 17,800 net acres in Permian Basin

    ExxonMobil has entered an agreement with LINN Energy to add 17,800 net acres in the Permian Basin to its US oil and natural gas portfolio managed by subsidiary XTO Energy. In the exchange, LINN Energy will...

  • Read more news