Change in game plan needed to attract burgeoning energy regions
Oil and Gas companies need to adapt to the changing face of the energy industry if they are to capitalise on new opportunities in emerging markets, according to AGR Petroleum Services.
Ian Burdis, AGR’s vice president of well management, believes operators and service companies need to find more flexible ways of working if they are to maximise potential activity with National and International Oil Companies (NOC and IOCs). He highlighted the growing influence of NOCs on the sector during a recent presentation to delegates at the World National Oil Companies Congress in London.
Speaking after the event, Mr Burdis said: “National Oil Companies own more than 85 per cent of oil and gas reserves around the world. As an industry we need to respond to this by finding new ways of working and building stronger relationships with NOCs. The sector needs to accept that the one-size-fits-all approach is no longer appropriate for the current market.”
Adapting to meet the varying needs of NOCs and IOCs is not going to be easy, Mr Burdis admits. He warned the conference that the days of easy oil were at an end. Service companies and operators now face the challenge of pioneering new regions and working in harsher, more remote regions to recover hydrocarbons. New technology, relationships and practices will need to be developed to achieve this.
Delegates heard that demand for oil and gas is being driven by countries that are not part of the Organisation for Economic Co-operation and Development (OECD). Research shows that their demand for hydrocarbons by 2015 is likely to be five times that of OECD countries prompting the need for a massive increase in oil and gas production.
Expansion opportunities currently exist for smaller operators and major service companies across the Middle East, Iraq and Brazil and Mr Burdis urged companies to find ways to work more closely with NOCs to share their knowledge and expertise with local teams.
He said: “The worldwide demand for oil and gas continues to increase providing both operators and service companies with significant opportunities. But, with traditional oil reservoirs peaking, supplies will come from more challenging environments and geographies. This drive will require access to significant human resources which have been difficult to recruit for several years and now are provided through a variety of differing sources. NOCs are warming to the benefits offered by outsourcing activity as we see huge potential in that arena.”
AGR has been active in the Middle East for more than 7 years. Its unrivalled well construction expertise is ideally suited for the region and its reservoir teams continue to work closely with NOCs.
The company recently celebrated drilling its 400th well in the last ten years – an achievement unsurpassed by any of its rivals. It is now looking to build on that landmark success with growth in key international regions.
Author: Torund D. Bryhn
AGR Petroleum Services, part of the Oslo Stock Exchange-listed AGR Group, is the world’s largest independent provider of well management and subsurface services. AGR Group has been in existence for more than 20 years and the AGR Petroleum Services division since its formation in 2005 has experienced dynamic growth with offices in four continents.