JLL Energy Forum on October 24
Posted: Wed Oct 24, 2018 12:47 pm
I attended the JLL Annual Energy Forum this morning along with over a dozen EPG members.
The keynote speaker was Dr. Nansen Galeri, President & CEO of QRI Group: https://www.qrigroup.com/
Dr. Saleri is the former Chief Reservoir Engineer for Saudi Aramco. He once reported to EPG member Lou Powers: http://theworldenergydilemma.com/about-the-author
He talked about the potential of Artificial Intelligence ("AI") to have a significant impact on the upstream oil & gas industry.
> AI is getting smarter.
> It should be applied to the most expensive areas on the business
> Global crude oil production (black oil) is now 93 million barrels per day
> Consumers (nations, business and individual people) want "Clean BTUs" and demand for BTUs (energy) will go up each year for decades.
> Oil, gas and coal will provide most of the energy for decades to come and even coal can produce "clean BTUs". < We have the technology to do this today.
> In November, 2017 wind moved ahead of coal for producing electricity in Texas. Texas has the most wind energy.
> "The Oil & Gas Industry should be the leader in cleaning up the environment."
> Pollution from oil, gas and coal is much lower today than it was ten years ago, but there is lots more work to be done.
Saudi Arabia:
> Their Ghawar Field is still the largest oilfield in the world (by a wide margin).
> Ghawar was discovered in 1950 and today it is producing ~5 million BOPD, which compares to the Permian Basin that is producing ~3.3 million BOPD.
> "Coning" not the risk that it used to be in Ghawar thanks to Maximum Reservoir Contact ("MRC") wells used to develop the field. MRCs are horizontal wells "on steroids".
> Saudi Arabia produces about 10 million BOPD. It can increase exports, but production will likely stay around 10 million BOPD.
> Raymond James supply/demand model shows Saudi Arabia producing 10,675,000 BOPD in 2019.
Artificial Intelligence has lots of potential in the upstream M&A area.
> Analysis of a target company that used to take six months by a team of engineers & geologists can now be done in a few days.
> Large databases (millions of well lever data) have been built
> Energy Industry upper management MUST learn the potential of AI for their companies.
> The management teams that figure out how to use AI will have the most successful companies.
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MY TAKE: The upstream oil & gas industry is extremely capital intensive. Several hundred $Billion will be spend to develop the Permian Basin. Efficiency gains from utilizing AI or "Big Data" can make BIG DOLLAR differences in this business.
The keynote speaker was Dr. Nansen Galeri, President & CEO of QRI Group: https://www.qrigroup.com/
Dr. Saleri is the former Chief Reservoir Engineer for Saudi Aramco. He once reported to EPG member Lou Powers: http://theworldenergydilemma.com/about-the-author
He talked about the potential of Artificial Intelligence ("AI") to have a significant impact on the upstream oil & gas industry.
> AI is getting smarter.
> It should be applied to the most expensive areas on the business
> Global crude oil production (black oil) is now 93 million barrels per day
> Consumers (nations, business and individual people) want "Clean BTUs" and demand for BTUs (energy) will go up each year for decades.
> Oil, gas and coal will provide most of the energy for decades to come and even coal can produce "clean BTUs". < We have the technology to do this today.
> In November, 2017 wind moved ahead of coal for producing electricity in Texas. Texas has the most wind energy.
> "The Oil & Gas Industry should be the leader in cleaning up the environment."
> Pollution from oil, gas and coal is much lower today than it was ten years ago, but there is lots more work to be done.
Saudi Arabia:
> Their Ghawar Field is still the largest oilfield in the world (by a wide margin).
> Ghawar was discovered in 1950 and today it is producing ~5 million BOPD, which compares to the Permian Basin that is producing ~3.3 million BOPD.
> "Coning" not the risk that it used to be in Ghawar thanks to Maximum Reservoir Contact ("MRC") wells used to develop the field. MRCs are horizontal wells "on steroids".
> Saudi Arabia produces about 10 million BOPD. It can increase exports, but production will likely stay around 10 million BOPD.
> Raymond James supply/demand model shows Saudi Arabia producing 10,675,000 BOPD in 2019.
Artificial Intelligence has lots of potential in the upstream M&A area.
> Analysis of a target company that used to take six months by a team of engineers & geologists can now be done in a few days.
> Large databases (millions of well lever data) have been built
> Energy Industry upper management MUST learn the potential of AI for their companies.
> The management teams that figure out how to use AI will have the most successful companies.
-------------------------------
MY TAKE: The upstream oil & gas industry is extremely capital intensive. Several hundred $Billion will be spend to develop the Permian Basin. Efficiency gains from utilizing AI or "Big Data" can make BIG DOLLAR differences in this business.