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)
And any questions. Collaborations from found. Let me ask the audience here to do you have questions and if you have questions please wait -- microphone. Comes to them and have a question -- couple questions. This. My my question me talking but environments like. Producing it. -- -- fantastic much commercials. Capable producer -- costs a lot of time and effort. In trying to convey a message to the general public. On what exactly we do you know top goalies -- tools technologies. -- it unity people just yet. What we do. Ultimately were almost essential service. Say. You know the world as we know North America doesn't go around us he -- natural gas. And you put gasoline card. My comment -- question. I guess the panel is that we it's from -- -- producers to all spectrums and in the media panel. Do you think that. The ball is being drawn out. From conveying the message. To the general public is apple being dropped the producers be spending more time and money in trying to address concerns public now. Is the government. Should the government stepped in and in trying to address more. To the general public. You know drilling for natural gas and and -- sources. Ted Wells CC season. -- in different areas that could be closer residential. -- We're fuel. Or do you feel the ball and wrong and in -- that this action happens hampering efforts. Lives. And my personal opinion is the first -- point. -- the question is it was a very. Our problem we were talking. The last couple of days and you can you're exactly right energy. In my opinion. Isn't it can't see global -- -- mean energy -- Those -- the China India some of developing nations. It is the currency of choice. I know -- -- out there and it's been going through the roof lately but we can't we can't run and our caller through it doesn't -- -- so. I understand their -- in the -- Absolutely not that that I think it's been -- brawl. To the -- -- -- the nurse Lou if with recent nomination of the Republican. Governor. -- live without bringing politics and that. She she basically lose talented development the last -- and and shown to the nation. Given the opportunity that we was operators can operate in a very. Environmentally sensitive man and taken no account so moved to -- The doubt that mr. met its presentation room. We can take you -- can help the environment in and drew a -- complete produce gas. -- with very minimal impacts on the environment similar -- -- -- those of us who live here locally is seen. T. Boone Pickens who have commercially about going to -- Renewable energy sources. -- -- -- and -- know -- there's there's a lot of visibility that there. The demonstrates that we can -- -- -- And the Atlantic coast and then in the Pacific coast and -- photograph coast we've done that. It and man the -- no scoop for you one thing at the point that when people. The issues of drilling. After Vietnam make in the Pacific -- -- -- we have fellow major. Hurricanes come through the Gulf of Mexico. And the last three years Katrina Rita in Iraq. And particularly with. Really that -- -- train at the roof the -- -- that we send a tremendous amount of damage they did to the Mississippi. No matter who's in -- Glafcos. Coincidentally they did that same type of damage to our platforms and structures in the Gulf of Mexico. -- with technology -- very. He and he did not hear any. We've heard some major releases associated with -- producing platforms and rigs in the Gulf of Mexico. Relating to any of those storms. And that's due to development of technology sales surface safety -- similar technologies we have. And then we'd really implement in the actual members of the Gulf of Mexico -- -- Texas and Louisiana. So so good -- to be better education. I grew -- you have the general public minister says dropping the ball and giving our message out I think that I think -- -- -- pretty good job. -- that at least at this point in town. And -- the -- an opportunity group we better. But I don't worry about Kurdish don't make a quick comment. Thank you in the US -- I hate to -- -- just put. Isn't in that regard I think we can learn. Something from the Canadians. I was fortunate not spend a little bit of time. Open -- -- crew area around Florida Sunday morning and with an operator up there. And I was absolutely amazed at the the interface between the operator. And the local people and then they they went to great pains to be. To educate those people -- interface with them and I don't think we do. Enough of that here in the US. And do you have that experienced here. I'd make just. Just just to comment on that and and I think we're gonna great job as well as an industry is providing technology. I don't think we're physically dropping the ball was my comment but. The fact that you still see real big push back. And and I can mean basins in the in Canada and in the United States where -- is huge push back. On drilling activity. And at the end of the day you turn around -- -- -- -- what's the option for us not to drill. These unconventional sources. -- the option as we start running -- -- natural gas. You know the commodity price spikes. No one liked it when gasoline in the United States is four dollars a barrel. But that's sort of this changing global economy. And -- it's getting more and more relevant for natural gas. For North America so. I would comment I I I hate to say it but I think we have our own issues in Canada that. I field the push back his. You know people the education factor needs to be picked up by somebody because. The fundamental understanding is we need the energy. We do not harm the environment you know we can do it responsible one and and ethical and environmental stewardship type manner. But. I I still see -- numerous -- having push back. Not so. I was gonna make just one brief. Comment on that aren't on that topic. The environment simply home -- -- area certainly but it looked very Rosario. We -- led -- producers in the Barnett they formed a consortium have one goal one mission that's understand. Water usage and to reduce water usage. And that's a public relations. Program that reaches out to. Newspapers. Government regulators -- birds and invited into the meetings and it's it's been working. Who successfully it seems. The same model has been token -- percent Marcellus activity started out some of the road towards -- -- questions -- -- really losing too much water. And drew -- -- denied and consortium respond same pattern brew. -- -- -- All the birds Boone. The technology isn't and -- the -- Others and show that we're you know industries concerning. In wherever they can and it's it's okay well we'll but the challenges large it needs to be maintained you know day -- -- -- I'm just trying to expand it to a more global view. And I would like to congratulate the Chesapeake CEO. In fact that he is brought gas. To TV. And is educating. The local community within the Fort Worth Dallas area and as far as Texas and Louisiana and Arkansas. Issue is not just in the United States. It is globally worldwide. And we see it of course in the regulations of Norway and we see it in the UK sector. We -- wells in the UK sector. That have to have specialized. Fluids. That are. Meet meet any kind of American standards as far is that going -- -- completion and drilling fluids. Therefore the environmental issues that we front. It's not just in the United States. Is -- so and worldwide. And whether we like it or not United States is and -- a major debt. Issues. Honestly I don't see the United States government. Helping us to turn. People more friendly to us to be quite honest will be. Because. You know we've got a major debt to -- blackmail. Whether we accepted or not I don't know what the outcome of the congress is but that's that's not -- -- her there but I think us. As the energy in history and the companies that make up the energy industry. If we teach. The people in the universities. In the high schools in the great schools. We've got a great outreach program through American Petroleum Institute. There will be. Eight as well as the world congress. All those areas have gotten environmental branches that are teaching. Me. Globally. What we're doing environment in the waters. As well as the -- year. And the impact -- -- general areas. And that's what I wanted to communicate. Is that every company. Of the energy -- -- industry. Needs to help. Proper make the word that we are environmentally friendly. Think we have a question. Yes -- Jackson your products and chemicals. What this is an accomplished like this is your car traffic all the opportunities in front of your masters like we've heard that there's a ten to one ratio of opportunity to meet unconditionally gases. I have been through about four years ago listening to a vice president of technology acquisition of a major world companies say. Basically that they are slow. Very conservative and adopting technology. I -- in this group here I'd just like to hear what you think of some of the critical factors. Affecting the rate of adoption of the kind of technologies that we've been seeing here and the good news is I have some producers and I have some technologist. Can we even have a financiers would be. This didn't hear your comments what are the critical factors affecting the rate of adoption of the technology. That's it before you. Because first. And that's a good question and if we get the answer to a commercial write it down. But. You know from my experience in developing new technologies. There's you know somewhere in need. You know in the industry. -- -- -- -- and then use of new technology. From the first second third time there's a degree of risk certainly. And sometimes -- -- not in place for somebody to take that risk on their shoulders and so that. You know technologies kind of sit a little bit and finally -- long comes -- -- Actor who's willing to take you know do some experimenting and sometimes it's you know to smaller companies -- -- -- larger companies and and the experience may -- starts to build and but it does take time. -- going -- his presentation shown. Yesterday regarding horizontal. Wells in the Barnett that the first -- was tried may be. Eight or nine years ago and it failed miserably you know when there was nothing done for several years after that. Until finally the technologies and experience caught up and then it escalates again. So there's tonight and I don't think it's a come. And complete answer to your question doctors I think there's you know just the risk of new technologies and and and there. And kind of of value of death that technology has to go through. You know it's I didn't generation is one thing getting it to full deployment is yet another -- -- valley of death of enough experience -- that Ford really hit legs underneath it and didn't -- that's not easy Hampshire. Some of the other panelists have some thoughts in that regard I hope. I wince Smith said on the subject to -- says what are concerned. I think the key factors welfare staff have to router in -- seems to have the reputations of being relatively slow to adopt technology. I don't know issues about I think. And success or two with some new -- -- convert. There's can really -- their situation. -- do -- more confidence and feel less risk and that seems to be improved. Technology really takes off -- when there's a success so. It takes to get their -- successor to. When there is there's -- accused. Know this comment briefly. -- you mentioned the finance company I guess that would be me. Very honest with you -- and may not like my own answer but I guess bottom line I would have to say who. Yes we would be a little bit slow. I'm. You know we are not in -- position to be. Pro Iraq veteran shale science experiment. We do like technology -- like a lot but. We also like it to be proven before we can can make investments such just a fact of life for a most private equity -- particularly want to rush us. I would like respond to that a little bit -- -- several technology awards in Houston. And I have seen in the last six months. Major taking. Be a column the mega companies. In team trying to find new technology. And also to be first wow -- -- of new technology. A more than any other time probably. In a long time. They are starting to -- take. -- technology more. Of the super majors and willing to take those -- risk. That previously. Whenever we weren't lower oil prices. They weren't as willing to take those risk. Now this I meant in my career I have seen. Greater risk. Whenever we have higher oil prices. Excepted. -- the oil companies. And then less risk of course. Whenever the prices. Are down. And -- average price right nailed it appears that we can sustain and still have high technology at that adoption. And I hope. Prices. Allow us to do that. But everything that comes to -- Is technology. And -- price that goes with it and this caller is economics of those fields for the operators. Anywhere else. The -- this to an Internet question here. What problems in the eastern United States will keep the Marcellus Shale from expanding like the Barnett -- So to help. Draft -- it's bad that. There hasn't been a lot of data released on -- Marcel Just put a particular company. We have been looking at it and as much detail as we can and are obviously -- lose the easy answers his infrastructure. Not particularly helpful in the the north eastern southern northeast part of -- -- in the southern part of New York. There basically isn't any and it infrastructure -- pipeline together and systems. There's rationing is my understanding -- -- -- -- -- -- right now that can actually girl. Horizontal wells. There's just a handful that can handle it. -- -- -- That not only -- your infrastructure impediments is gonna kind of may be slow down the development there but. There's undoubtedly going to be geological and then -- reason just like in the income -- there's fast -- -- -- that doesn't just make it -- Everywhere. An early on we looked at the Marcellus a lot of people. They were look at these -- I'm just covered. West Virginia and go through Pennsylvania open to new York and they run the impression it's all going to be -- And we just don't believe that do we actually certain playing easy you know she didn't do the the -- oceanfront. This possibility that. That showed us maybe two disarming mature and and -- I'm gonna have gash. In the formation. Structurally we the appellation is a very complex. There's going to be areas with with a -- -- crafting and and you may run into some of the same problems -- to do in the Barnett. You know some people believe it if there's lot of fashion that extends -- Rather than being slightly over pressured which. A lot of the Marcellus is this going to be more men or maybe even under pressure which is not good for a -- -- bluntly. Socialists are subject that I -- you know -- -- -- opinion that. It's not -- going to be good we hope it is but. Thank a lot of it will be that there's just a lot to learn and and information is very early in Pennsylvania everything -- -- for five years. You can in your production information so. I'm sure there's people out there that. Property and -- a lot more than we do we're only we only get public information and so we have to kind of form opinions from lap to. This kind of feeling. -- Another another and that question. Wish list of technologies -- -- physical methods applicable unconventional guest knows what what do you wish you could do that you. Can't do now. Just no way to -- -- As that would -- -- what what what might be the next breakthrough. I think that. You know there's been a lot of certainly a lot of developments in. In drilling well completion horizontal. Wells and so on and I think -- here is the ability. To. Well drilling communicate with the bottom hole. Data wise with a bandwidth that you know far exceeds -- current capabilities are this could open up. Seismic while drilling and -- and resolution information -- drilling. And then the the ability to steer and turn and go -- very again very very precise targets is his scenario that would you know that would. Could be very valuable. The you know following that -- -- stimulation technologies. That. You know that are being developed but once we get close to those sweet spots how to how to best connect to those fracture treatments whether it's. Something beyond fracturing. I know there's some. Different material cutting. Projects that are underway very small using you know cables and other things that can allow a lot more control but some. Some. Script changes in those areas I think they're going to be important. Think one -- -- wish list on the surface side. From my perspective would be certainly as we move into the west and the Iraqis especially more more the -- -- -- -- -- when. Beyond control surface and minerals there -- certainty to a regulatory. Regime and what's coming down the line on that front. Moving to the technical sides water handling issues there were methods of how do we minimize the use maximize the reuse. Think that's going to be a huge huge effort in the in the future. Okay there anymore questions from those from them audience in the conference were just -- video time. If not -- thank you for being here I thank you to the Internet audience for your participation and I think you -- the panelists -- for your thoughts it was very very very useful very valuable. I remind you that this webcast will be archive you can access it. And that www. OG jail on line dot com. -- so I -- journal's web -- there's a web there's a webcast here at the bottom you may need to scroll through several webcast fondest I think he'll be up after about 24 hours. Thank you again.