Wed, 5 Nov 2008|
Members of the Conference Advisory Board will discuss important issues from the conference & answer questions from the on-site and internet audiences.
Automatically Generated Transcript (may not be 100% accurate)
There -- there are important groups involved in this session. The first group is the panel. Members of which are members of the advisory board. For the unconventional gas conference they are experts and they were the creative interaction -- energy behind the very successful. Conference that we're concluding today. This second important group is the conference audience you here in this room. You you are here -- here -- -- and an extension of the ideas that we've shared. In this event. The third and -- group is the Internet audience people who are watching this in video and who will be able to submit questions. Fact it'll be the interactivity between these first three groups. There will there will determine the success. Of this session so please don't hold back please. Ans ask questions make comments let's get a discussion. Going on medium and and as we do I know the we will add to the intellectual content. Very good conference. The -- group just as important. Is -- group of our sponsors without whom this event would be impossible. As -- to tell you something about them I will call on my boss bill right -- Vice president of -- well and group publisher for oil and gas journal. Thank you -- Have a love of my job there's pleasure in them in this extreme pleasure of -- two. Take a few moments to -- -- three sponsors of today's why would gifts. Noon at the end of the -- guess this will officially. Close the conference. First. Column acquisitions and -- that list. Call acquisitions is a full service. Land company in the early -- and alternative energy industries. Areas of expertise in its expertise include but are not limited to -- acquisition. Right of way. -- due diligence. Title research and curative and GIS mapping. -- has decades of experience. And -- efficiency and ability to work anywhere in the continental United States. Secondly there's an -- -- Next is the global market leader full service natural -- compression. In every major hydrocarbon regions around the world. Fixed it offers energy solutions across the energy spectrum. From producers. To transporters. To processors. And -- storage owners. Last but certainly not least we have -- -- the world's leading producer and supplier of high conductivity ceramic profit. For a -- fracture stimulation. They're the provider of the world's most advanced and popular -- modeling software. As well as a leading suppliers consulting services to the stimulation. Business. Products and services are focused on optimizing the conductivity. Of oil and natural gas reserves present course and by adding value by increasing production and recovery rates. The cost efficient. -- for exploration and production appliance. So once again an all white collar positions. That stood -- car boat for being our sponsors to thank you. Thank you don't. A little bit about how will proceed with this event I lived briefly introduced the panelists. And then I'll invite the panelists to make brief comments about the unconventional gas business I've told them they can. They can highlight things that they heard recessions they cheer her at other times in this in this conference or they can go off on -- topic. That's that's important to them that they'd like to that they like to express to -- So -- very -- -- either their remarks be informal and brief. But -- that the information will come from people who -- experts in their. -- areas and I will ask them to sort of describe what they do before in their and their positions. And before -- begin the remarks. -- -- The analysts say ask questions to one another to respond to each other I think -- if they've heard something that that -- -- curiosity wanted to hear more. About a -- was sort of help us start the discussion. They're now open up the floor to questions. I'll be taking questions here. On on the monitor those -- -- in the Internet audience you can ask -- -- any -- beginning now. You you should have on your screen -- facility for submitting a question I received here at the podium. Those -- -- in the room here. Please wait for a microphone before you before you -- -- -- yourself. And and and ask your question because without the microphone are -- -- Internet audience won't be able to hear you. So. With that dilute. Lou I introduce our panelists are beginning. My immediate left on the bottom -- And the order that I introduce introduce a mobile order -- which the next there they're opening remarks to -- media. George. Bigger energy. Next to him Allen -- -- of oil and gas journal. Then -- -- all of Schlumberger. Can't very aggressive. On the top bit from left to right John S sales of content -- in Japan has LP. Thomas -- -- paso corporation. Into this market to us of oil and gas journal. And -- -- Reilly of Halliburton. -- that let's get started. George was -- opening remarks. Thank you. Bigger energy we're on the service side we're essentially contract operator we also have the labor business in the Gulf of Mexico internationally. And as it pertains to the -- for this conference. Hard labor -- managed services practices we call it we're -- Active in the -- base in the coal mine that whole bed methane province. And I'd like to start my remarks one of them will be -- talks that we had there's a very wonderful slide. Good good resource triangle. -- -- that we actually saw through several talks throughout the proceedings. And it's wrong. They're really dictates and lays out what where we are in one of the issues before us. Work through in the days of the easy -- access to easy oil and gas we have a lot more resource that's in play. And as we move down you have two factors that affect that it's increasing price -- increasing technology. And the venue of the talks we've had over lost two days. Bridges and some remarkable discussions around the technology. Water management has come to a four errors that never heard it. Really timely in that one of the speakers that we just had. Pulled off the Scientific American which -- the press yesterday and the lead story is the interaction of energy and water. Also -- regarding seismic and unconventional resources. -- that was of interest in development. As well as you lot of subsurface imaging. And also of course the -- programs to unlock these unconventional resources. When you have these resources. There's another -- that we can go to the next slide. And this is just general projection. That they're sitting there looking at what is the current estimate and then these are numbers and you should hang their hat on as I was informed that wood MacKenzie. But we wanted to just say. We're we're we projected to go unconventional. Resources are going to be on coming online for the future. -- a mainstay of our new few profiles we go forward for the next thirty years. My name's Allen kept Saddam. Journalist. From the University of Tulsa. You know. I joined at Tulsa world newspaper in 1968. And went to your going to ask you -- in banner drilling here 1981. I moved to Houston. 1996. And I too was I was fascinated by. Steve -- -- -- talk. And he's now want to exercise in university -- the city's been working on unconventional -- Projects his entire career. -- students are well. With major. Study that shows that the volume of technically Rico -- gas in the world's motions. Who are still -- is not nearly unanimous but more -- mind boggling. I mean this is so significant because. Did extends. To the whole. -- so. -- exportation of unconventional gas has. Occurred outside North America so -- of the business opportunities. Ten US we have pretty solid base of production gas from -- formations. Shows and coal beds. And an operating companies have announced a number of aggressive plans to develop someone who -- employees. In the next few years. Now what place I can convert. The resource from the ground into consume. Hundred programs for profit is a key question with many uncertainties. In the last few weeks we've seen -- operators scaling back their spending plans for next -- to. And we're still waiting to see how cold it will do this sooner. And natural gas prices are roughly have thought they were a year ago so those are certain closely watched. -- service -- man told me that this meeting that will soon have. There are constraints on the supply of fracture -- -- At the -- it will be needed as unconventional -- sixth rotation expands outside North America. The greatest challenges as his people to exploit. The resource. Even in North America. Another speaker noted yesterday. -- a few people that few people outside North America are experienced an unconventional gas. Most most of the other countries don't even have fiscal systems that relate to -- conventional gas. A lot -- my -- -- speaker was doctor Richard and his students -- right. They stood in their conventional gas production -- US producing basins. Including the cumulative production -- yet to recover volumes. Using resource estimates published -- server. Large agencies they estimated that the technically recoverable volume of unconventional gas and -- basin. Shouldn't be ten times the estimated ultimate recovery of conventional gas. And this is because. -- distribution. All resources. Mirrors. -- they plan to expand the study to 215 years basins. And I also propose that this ten times factors should have to also -- sedimentary basins worldwide. They're developing software. To help operators service companies and -- relate to methods that have been used to unlock unconventional gas from US foreign nations. To soon learn how -- formations in basins around the world. This sounds like fuel further a string of unconventional gas conference is at least for the rest of my career and probably oh. -- from any -- works. Thank you. I would presume -- -- they didn't consulting services segment. And what -- these service industry's largest. Petrochemical consulting services group reaffirmed. -- 400 staff. Petroleum engineers engineers scientists -- That their opponents. Which recommendations and decisions are based on experience interpretation. And our citizens studies about -- yes did. And assets and an engine production has been studies that sort of thing that's our segment does. And I was very pleased to be and then the conference and I was particularly happy to. To see plan to attend presentations just generally been a number of people -- president -- to -- appreciate that. That's very specific presentations I think you're seeing the food and I was also restore -- which is presentation implications roses and his adulation and whose teams wrote -- there. The resource strung -- the distribution arm below the statesman internationally have unconventional. Gas resources. I think it. Dozens of interstate import. That both -- I spoke too soon fusion built in -- -- -- and the location -- -- -- -- unconventional movie film just -- convention hasn't been paying really close. And -- -- better news I think the biggest messages into making room. Specific presentation that touched. A -- of the technical issues there will be. Well the big issues resume -- -- instruction the things. American do congressional employees working in conjunction with our guest is of course. I think there. -- -- -- In the future in Minnesota but soon. Session assertions about presentations about international. Development sort of unconventional gas. -- -- -- -- -- Numerous places in Europe and Asian and South America. Interest in yeah. Where solos are today and maybe the best non technical issues in terms of what other restrictions there are and what might have to happen to open -- -- country restaurant. In the markets or whatever I'm. Personally I didn't get -- -- that. Okay of course -- things that we need to. Out recent news sports commission and yes this concern is how do know -- -- The road but I think it's also good news and restore. Who have -- the most work to do that. What to do a good game for them just basically understanding those -- -- There storage mechanisms -- production mechanisms mechanically how to respond to. Defamation though -- so then I put my opinion from my company. I don't think they came -- Conference but smooth. Has established a regional technology center for this purpose embarrassment in the past two years it's focused on unconventional -- -- -- up. Yes sure so mr. -- and information important moment everything's. That the demonstrates our commitment with -- really important. Certain business. -- I'm can't. -- with rhapsody -- he stands for research partnership to secure energy for America and it's a new company private not for profit research group. And we focus have a program on unconventional gas certainly important -- this conference I mentioned there's two other pieces to the program. Ultra deep water and a small producer program but. I think is certainly go to other panelists the it was a great conference a lot of good papers tonight. Took a few notes and a few things that struck me of importance. Starting with the natural gas resource base we've talked about it and it kicked it continues to change -- Worldwide in one direction it keeps going up despite the fact that we've produced 56700. Trillion cubic -- to pass. Here in the United States are technically recoverable resource base is still a record high about 2000 trillion cubic feet. In large part that's because of unconventional gas. When you know it from -- presentations relative to their resourcefulness around the world that was mentioned the unconventional resource this around the most technically recoverable -- to be 30000. TCF of gas. So I think I think we're right consumption of -- to lose about a hundred -- yeah. That would be that would equipped to 300 years of gas supply could you produce -- all. But we cannot it is technically recoverable -- economically recoverable. We can't produce at all and that takes you to -- next topic what drives us down. Into that Research Triangle that we've talked about this technology and and price both and there's been a lot of technology talked about it within this conference. A couple just examples horizontal drilling in Canada 101000. Reaching out 101000 feet -- Are staying within there was some clothes -- -- that's starting -- commute takes place on a common basis these days. Seismic data seismic data gathering and technology. We're doing that now. Dallas Fort Worth airport in subdivisions unheard of you know years ago. And then drilling technologies fracturing technology -- diagnostics water water conservation water management practices and many others so. A lot of good technologies. Helping us drive down into that resource base a trend that -- to it seems to have developed. Instant that it -- -- many many years in unconventional gas if you. Those of you -- old enough to remember -- almost remember. In the sixties the approach to unconventional gas. Was like -- without him. -- would -- your search incentive nuclear detonations in western United States with the idea of fracturing an entire township and recovering the gas from one well. Well that didn't quite work so we moved on to have grown up massive hydraulic fracturing. Extremely large jobs -- all day. -- -- large volumes and we learned that we didn't quite have the control fracture treatments that we that's required for something of that time. And so will a lot of -- action today precision in everything you do seems to be the formula. Players who. -- very carefully within a reservoir. And carefully designed infection treatment stopped in my is that recovery and takes a lot of wells and a lot of well borrowers. Technology -- as we improve technology and we've improved to where we started years ago again. This is kind of -- -- food. To change that Bob mentioned in opening the conference. We historical data Chirac. And we went to know better Chirac. -- -- -- -- -- And I are working and -- -- better Chirac extremely low vulnerabilities so I had to look up last night in the dictionary what's next and its -- -- That's times. Two while it didn't -- to the minus twelve. Well I think we've got enough hands with Nat reversal -- that future conferences and tell us what what we're what we're able to do. And switch then quickly. All this activity leads to the environmental topic and certainly was probably throughout the conference and very important as well. -- land -- our -- water continue to be important need to be Paramount. In everything we do and many many technologies -- -- discussed that. Who's been mentioned and was part of the conference whether. Loose. And other conservation measures for water all electric drill. -- to control their emissions. Zero flying. And other topics were were discussed. Another interest. And send -- the topics from the environmental topic and then won't conclude with just a general observation worked two -- at -- the industry seems to -- -- you know scrutiny in the environmental area produced water is an example. We say -- the amount of water used by there. Oil and gas industry in the Barnett shale is -- skill. Compared to -- that used in the municipal area and I electric generators. In the air emissions there. Dallas Fort Worth airport and the -- emissions from drilling. -- again miniscule compared to the overall emissions from jets and so on. The -- was under great scrutiny and that's it's part of any respect you know. The responsibility. Have in this development. Process that we do -- -- the new kid on the block. People have been. Who were added to the news the little city for a long time and all of a sudden and gas industry shows up and it's very visible vision mirrors drilling. Rigs and -- -- trucks and there's other things moving up and down the road. -- have been flying into dust that rose for a long time and then all of a sudden new kid on the block is he's -- -- popping up all of a sudden. And so there's a great level funeral of a little oversight in the environmental way in their industry has responded to a tremendously. With these technologies. That I mentioned and and continues to do so what's -- been an amazing way. Some general observations so what goes around comes around somebody told me and -- in -- networking sessions I can't confirm this but. The -- Producing gas well in the United States was from the Ohio shale within 1820 -- So there's nothing new under the sun sometimes. Another general comment and that -- to. Grow our confidence was -- Never stops what the unconventional resources it's an ongoing learning from area to area topic to topic. Aaron mentioned. Steve lynch is 90% of the convention -- to 10% -- Ratio and -- that holds true there's a tremendous volume of unconventional gas around the world yet to be. Developed. And so certainly you know the US has a revenue -- endowment. In unconventional natural gas and that's extraordinary importance to us now -- these. You know energy to energy -- to high price and areas and so I think that the unconventional gas business is going to be an active for a very many years to come and going to be a very important you know area. -- for many many years to come as well.