WBC Moderates Panel at Moody’s Conference

WBC’s Angus Warren was the moderator at a recent Moody’s conference presented by Moody’s Analytics and Knowledge Services*.  The theme of the conference was technology and innovation and our panel considered the influence of disruptive technology on strategic investment decisions in oil and gas.

Moody’s conference session: influence of disruptive technologies on O&G strategic investment decisions in oil and gas

The panel considered  the North American shale story – the biggest disruptive technology in energy markets for years.  The driving forces for the development of the new technology were high prices and enormous resources underlying a conventional E&P industry.

It was noted that the pioneers of the new shale technology were small operators.  They were willing to take on the technical risk to develop new combinations of horizontal drilling and fraccing to access the huge quantities of oil and gas present in the shale source rock.  Readily available geological data played a significant role in allowing the shale opportunity to be assessed and captured.  Such data was present from conventional operations above the underlying shale deposits.  A contrast was made with with shale efforts in the UK where there is considerably less data.

The strategic planning process in oil and gas was discussed, in particular as it relates to the identification and development of new technologies.  It was noted that in the gas of shale oil and gas the key driver was the pursuit of opportunity by small, entrepreneurial firms.  It was suggested that larger firms entered the shale plays later and that the process focused nature of these firms does not generally lend itself to such opportunities.

Key drivers in the use of new technology in oil and gas are cost and risk reduction and examples include 3D and 4D seismic, horizontal drilling and fraccing.

The session finished with a look at what oil and gas can learn from other sectors.  It was noted that the oil and gas industry presents something of a paradox – technology led but with a somewhat poor reputation for embracing new technology development and deployment.  One area where oil and gas could learn significantly from others is in the collection, processing and use of data.  Much data is oil and gas is unused or used poorly.

*”Re-Imagine 2020 – Empower. Innovate. Transform.” was hosted by Moody’s Analytics and Knowledge Services in London on 18th October 2018.  Also on the panel were Carole Nakhle, Amanda Turner and Yanos Michopoulos.

 

 

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