What a difference two years make. Unrest in North Africa, the emergence of US shale and tensions with Russia have all put energy high on the agenda.
OE spoke to Offshore Mediterranean Conference (OMC) 2015 chairman Innocenzo Titone about his outlook on the industry ahead of the event opening in Ravenna, Italy, on Wednesday (25 March).
Despite the turbulence in the market, with low oil prices impacting many producers and those in the supply chain, this year’s OMC, held 25-27 March and supported by OE as a media sponsor, is still drawing the crowds, he says, with delegate registration up 10% on 2013, and the number of exhibiting companies up 20% compared to 2013.
OE: What have been the most significant changes in the Mediterranean offshore oil and gas industry since OMC 2013?
The geopolitical crisis in North Africa first, followed by the Russia-Ukraine conflict and the development of the American unconventional resources market has led to market instability and insecurity of supplies.
In this scenario, Europe has to urgently develop domestic production. As far as Italy is concerned, the presence of energy resources is well established, but practical action is needed.
OE: Where do you see the greatest opportunities for the offshore exploration and production industry in the Mediterranean in the next 3-5 years?
Recent discoveries in the Eastern Mediterranean - such as the ones of the Levant Basin - and the exploration activities lunched by Croatia, Cyprus and Greece could lead to the establishment of a European energy hub. This hub can face to a large extent those worries related to the availability of energy resources.
OE: What are the biggest challenges facing the industry?
On the one hand, governments have to satisfy energy demand; on the other, the industry has to guarantee security in operations and proper investment to face the growing energy demand. In consideration of multimillion dollar investments and the risks associated with them, decisions can be taken only in a steady market.
OE: How will OMC Ravenna 2015 address these challenges?
During the Plenary Session (25 March) an international arena will face the challenges of next 20 years: CEO of Eni, Claudio Descalzi, will moderate the debate “Focus on Change: Planning the next 20 years. Diversifying choices, increasing opportunities” with the participation of the Undersecretary of the Italian Ministry of Economic Development, Simona Vicari, Authorities from Algeria, Egypt and Cyprus and CEOs of national and international oil and service companies.
On 26 March, enhanced oil recovery will be the theme of the day with a Special Session on technologies to produce more oil from mature fields. The subject will be introduced by two professors, Ruben Juanes from MIT Boston and Martin Blunt from Imperial College London.
On 27 March, we’ll deal with safety in offshore operations within the Special Session “Offshore Regulations and Technologies: five years after Macondo.” Government representatives from Italy, Croatia and Cyprus are presenting how the European directive on security in offshore operations has been put into effect in their countries. The debate is introduced by Giovanni De Santi, DG Joint Research Centre Institute for Energy and Transport European Commission. Technical contributions of operators and companies of the sector will follow.
Moreover, this edition (of OMC) boasts a record number of papers, 175, presented in 34 technical sessions, that cover all aspects of the upstream industry.
Last but not least, OMC has always believed in the power of young people to change the world we live in. That’s why we have given university students the opportunity to present their researches during the “5 minute speech contest” scheduled on 26 March.
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