World Petroleum Council Introduction to the WPC organisation , mission and values Challenges and...
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Transcript of World Petroleum Council Introduction to the WPC organisation , mission and values Challenges and...
World Petroleum Council• Introduction to the WPC organisation, mission and values• Challenges and Opportunities in the Petroleum Industry• Responsibly Energising a Growing World
Renato T Bertani, President, WPC - June 2012
AlgeriaAngolaArgentinaAustraliaAustriaAzerbaijanBahrainBelgiumBrazilCanadaChinaColombiaCroatiaCubaCzechDenmarkEgyptFinlandFranceGabonGermanyHungaryIndia
IndonesiaIranIsraelJapanKazakhstan
KenyaKoreaKuwaitLibyaMacedonia
MexicoMoroccoMozambiqueNetherlandsNigeria
NorwayOmanPakistanPanamaPeru
PolandPortugalQatarRomaniaRussiaSaudi ArabiaSerbiaSierra LeoneSlovakiaSloveniaSouth AfricaSpainSurinameSwedenThailandTrinidad & TobagoTurkeyUKUruguayUSAVenezuelaVietnamMISSION
The mission of the World Petroleum Council is to promote the sustainable development, production and consumption of oil, gas and other energy resources for the benefit of all
Member Countries
WPC Member Countries
• The World Petroleum Council is a non political entity accredited as a Non Governmental Organization by the United Nations. The WPC currently has 65 member countries, representing over 95% of the world’s oil and gas production and consumption. Each member country has established a National Committee represented in the Council, the supreme governing body of the WPC. The Secretariat of the WPC is based in London, UK
WPC Council65 National Committees
Executive Committee
Congress Programme Committee
YouthCommittee
SecretariatDirector General Communication Director
Organisation Chart
Our Values
VALUES
The World Petroleum Council firmly believes that the activities of the petroleum industry must be predicated in certain fundamental values:
• Respect for individuals and communities• Reliance on the highest technological solutions• Highest business ethical and governance standards• Creation of value to all stakeholders.
Strategic ActivitiesSTRATEGIC ACTIVITIESTo accomplish its goals the WPC carries a number of strategic activities in cooperation with its members, including:
World Petroleum Congress
Moscow, June 2014“Responsibly Energising a Growing World”
Youth Activities Youth Committee set up multiple task forces to engage young peopleWPC Mentoring Programme now in its 2nd cycleWPCYouthConnect website continued as online discussion forum
Youth Forum Calgary, October 2013 “Unconventional Solutions for an Unconventional World”
Inter Congress Activities
Engagement with industry related entitiesAd hoc studies and publicationsCommunication with membership and stakeholders
WPC Legacy Fund Using congress proceeds to benefit local communities
WPC Global Knowledge Center
Web base data center, accessible to all National Committees, to be populated with articles, presentations and key industry statistics, aiming at dissemination of best practices among our member countries
NC Expert Workshops Focused discussions on key issues and technologies; main results of the workshop to be delivered as a Special Session during the Congress
The value we add THE VALUE WE ADD TO OUR MEMBERS
In addition to promoting the petroleum sector as whole, the WPC offers many opportunities specifically designed to benefit our members. These include:
• Representation in the Council and various committees• Opportunity to host the World Petroleum Congress and regional/thematic conferences• Nomination for highly visible speaking roles • Showcasing of member country industry• Enhanced outreach to all stakeholders• Promoting best practices on transparency, ethics and social responsibility
• Oil price• Peak oil• IOC’s / NOC’s• Energy security• Access to acreage• Social licence to operate • Climate change• Water• Youth and gender• Geopolitics
Addressing all aspects of the petroleum industry
The Challenge:Sustainable supply of the ever growing energy demand
Key Drivers to Energy Consumption
Population Growth
HighMed
Low
19603 bn people
20509 bn people?
Current Energy ScenarioTotal Energy Consumption
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a
S Arab
ia US
S Korea
Russia
Japan
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yFra
nce UKSp
ain Iran
Italy
China
Mexico
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India0
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Energy Consumption and PopulationSelected Countries (2010)
Ener
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onsu
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(boe
/cap
)
Popu
latio
n (M
illio
n Pe
ople
)
World Average: 13.46 boe/cap/yrIncrease to bring CMBII to Spain level: 126 mmboe/day
Energy Inclusion
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13.910.5 10.1
6.4 6.4 5.1 5.1 5.1 4.3 4.2 4.0 3.5 3.4 3.0 2.8 2.4
56.1
0
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Energy Consumption (2010)MM boe/day
Source: BP Statistical Review, 2011
Current Energy ScenarioTotal Energy Consumption
Total Consumption: 241 MMboe/day
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Source: EIA
World Energy Demand Growth
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721
• Energy consumption will grow by approximately 40% until 2030• The largest growth will be in developing countries
2005 2008 2010 2015 2020 2025 20300
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World Energy ConsumptionMM boe/day
Non-OECDOECD
0.6%
2.3%
1.6%Source: EIA
257
356
Source: EIA , International Energy OutlookIssue: October 2011
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World Energy Demand Growth
• Fossil fuels (oil, natural gas and coal) will continue to be the main sources of energy• Supply of renewable sources of energy will grow significantly, but still remain a complementary source of energy
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World Marketed Energy Use by Fuel Type MMboe/day
LiquidsNatural GasCoalNuclearRenewables
Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)
Source: EIA OutlookIssue: October 2011
World Oil Reserves
• World resource base is expanding in view of new technologies and price deck
S. Arabia
Venez*Canada*
IranIraq
KuwaitUAE
RussiaLibya
NigeriaKazakh
QatarUS China
BrazilAlgeria
MexicoAngola
Azerbaijan
Ecuador
RoW0
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175138 115 102 98
60 46 37 30 25 21 20 13 12 12 10 7 7
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Oil Reserves (2011) Billion bo
Total Reserves: 1.471 trillion boR/P = 46 yrs(*) Including extra heavy and oil sands
Source: EIA , International Energy OutlookIssue: October 2011
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World Liquid Fuel Consumption
• Liquid fuels will continue as the largest component of the energy matrix• Growth of oil production, in both Opec and non Opec countries will meet most of the demand• Non-conventional liquid fuels also growing significantly
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World Crude Oil and Liquid Fuels ConsumptionMMb/day
Non ConvConv Non OpecConv OpecCurrent Prod Proj
Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)
Source: EIA OutlookIssue: October 2011 108
87.8
Saudi Arabia
Iraq Other Middle ...
West Africa
Iran South America
North Africa
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Opec Liquids Productionmmb/day
20082035
Source: EIA , International Energy OutlookIssue: October 2011
Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)
Key Drivers and Constraints Liquid Production Changes
0
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Non Opec Liquids ProductionMmb/day
20082035
• New production from unconventional, heavy crude, ultra deep waters and reservoirs• Increasingly more challenging and more expensive• Increasingly more stringent HSE requirements
17Lower Aptian reconstitution (122 m.y.)
Pre Salt deep offshore Brazil
Major New Oil and Gas Developments
Orinoco Extra heavy oil
Ultra deep Gulf of Mexico
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Source: IHS, ANP, Woodmac
Santos Basin largest oil discoveries (mmbo)
Major New Oil and Gas Developments
RussiaIran
QatarTurkmenistan
Saudi Arabia
US UAEVenezuela
NigeriaAlgeria
IraqIndonesia
Australia
ChinaMalaysia
EgyptNorway
Kazakhstan
Kuwait
Canada
Uzbekistan
LibyaIndia
RoW0
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273213
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159112
108103 99 85 78 72 65 63 61 55 55 51
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World Gas Reserves (2010) -TCFSource: BP Statistical Review, 2011
• World Reserves: 6,608 tcf• R/P = 58.6 yrs• USA gas shale resources: 6,600 tcf
World Gas Reserves
• World resource base is expanding in view of new technologies and price deck
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Natural Gas Consumptiontcf/year
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Source: EIA , International Energy OutlookIssue: October 2011
World Gas Consumption
Source: EIA , International Energy OutlookIssue: October 2011
World Natural Gas Supply
• Natural gas production grow will be mainly from the Middle East, Asia and Eurasia, with increasing contribution of non conventional sources
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Natural Gas Productiontcf/year
RoWRussiaOECD Non ConventionalOECD Conventional
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Natural Gas Production Change2008-2035 tcf/year
• New production from unconventional, stranded gas, remote areas• Tendency to gas commoditization (LNG, GTL)• Regional pipelines constrained by costs, geopolitical uncertainty
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Resource Base Shales• Source Rock is the same as the Reservoir• No secondary migration• Gas generation window• Fracturing and microfacturing
The promise of the unconventional natural gas resources
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Investment decisions: challenges and pitfalls
124,168 Wells
Source: EIA , International Energy OutlookIssue: October 2011
487,627 Wells
Global LNG Trade
The Opportunity:Long term returns to all stakeholders
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MONEY$20 trillion until 2030IEA Energy Outlook
MILLSIncreasing demand for
steel, rigs, supplies
MINDSRapidly aging HR base,
Ingredients for SuccessThe success of our industry as whole more than ever will require: • Investment in people and technology• Superior management and deployment of capital• Highest standards of Health, Safety and Environment• Social Responsibility and Ethics as part of the Business Model
The WPC supports the 10 principles for business sustainability of the United Nations Global Compact.
Human Rights•Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and •Principle 2: make sure that they are not complicit in human rights abuses.
Labour•Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; •Principle 4: the elimination of all forms of forced and compulsory labour; •Principle 5: the effective abolition of child labour; and •Principle 6: the elimination of discrimination in respect of employment and occupation. Environment•Principle 7: Businesses should support a precautionary approach to environmental challenges; •Principle 8: undertake initiatives to promote greater environmental responsibility; and •Principle 9: encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption•Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
The WPC supports the 10 principles for business sustainability of the United Nations Global Compact. There are 183 oil and gas participants, including most majors, large independents, national companies and services companies.
UN Global Compact Principles
We hope to see you at the 21st WPCin Moscow, June 15th – 19th, 2014
Responsibly Energising a Growing World