The Organisation of Petroleum Exporting Countries, OPEC has harped on the need to promote innovative oil and gas technology targeted at making new finds, increasing reserves and production capacity of nations.
In his keynote address – New Energy Era: Transformation, Diversification and Integration – delivered at the 5th Kuwait Oil & Gas Show, 16 April 2018, Kuwait City, Kuwait, OPEC Secretary General, HE Mohammad Sanusi Barkindo, stated that: ‘’our industry has seen technological innovation move E&P opportunities from onshore to offshore, then to deep water and frontier regions, and most recently to unconventionals.
‘’Improvements in the quantity and quality of information about different geological formations have meant we have been able to find more oil and gas.
‘’When looking at recovery rates, technological developments have helped increase these from less than 10% of oil in place in the early history of the industry to more than 70% in some fields today. Advancements have also improved the safety of our industry; for those working in it, and also in terms of exploration, production and supply.’’
Commenting on the environment, he said that: ‘’And they have allowed us to continually improve the environmental credentials of oil and gas, both in production and use. The industry’s past successes are a reminder that innovation and new technologies are the key to unlocking the abundant sources of oil and energy in an ever more sound, secure and responsible manner.
‘’And as an industry, the challenge of emissions is one that we need to face head on. I am a firm believer that solutions can be found in technologies that reduce and ultimately eliminate these emissions. In this regard, the world has made little progress. Therefore more work and collaboration are urgently required. We need to continually look at the development and use of cleaner technologies, such as carbon capture utilisation and storage and many others in the future.’’
He added: ‘’At OPEC, we welcome coordinated action with the industry and through various research and development platforms.
‘’It is vital that we collectively develop and adopt technologies, as well as all-inclusive energy policies, that would address carbon emissions, not to crowd out investments in oil.
‘’We truly believe we need to work towards a more integrated industry, at all levels. We need to continually break down barriers; we cannot work in silos. This is vital in an increasingly interdependent and complex world.
‘’This is readily apparent in the historic ‘Declaration of Cooperation’ between 24 OPEC and non-OPEC producers. This integrated approach to tackle the oil market downturn and return balance and stability to the market is unparalleled in the history of the oil industry.
‘’Moreover, the past 15 months or so has shown it to be a great success, driven by the unprecedented conformity levels voluntary production adjustments. In 2017, it averaged 109%, and for the most recently reported months, February saw a level of 138% and in March the figure is expected to be even higher.
‘’In looking at the current oil market situation, there is no doubt that the industry is starting to feel a much warmer glow. The overall market fundamentals have not been this strong since the onset of the current cycle.
‘’In 2017, the global economic recovery gathered momentum. This positive trend is expected to be maintained in 2018 with an extremely healthy growth forecast of 3.8%.’’