Untitled Document
Untitled Document

IHS CERAWeek: US, Russia hold key roles in global energy journey, says BP

As the demand for energy grows, opportunities exist in the 'global energy journey,' where the US and Russia hold key roles, said BP PLC chief executive Bob Dudley in an opening keynote address March 6 to attendees at IHS CERAWeek in Houston.

Bob Dudley, BP

BP’s Energy Outlook 2030 publication forecasts energy demand to grow by more than a third by 2030, with China and India likely to account for roughly 90% of that growth. On the supply side, BP forecasts nonfossil energy—nuclear, hydro, biofuels, and other renewable together—to provide roughly 20% of all energy in 2030. Gas is expected to be the fastest growing fossil fuel at a pace of roughly 2% annually. “It’s clean, cheap, and increasingly available,” he noted. Oil is expected to grow at less than 1% per year.

Despite the growth, it is anticipated that the world will still need around 16 million b/d more in 2030 than today. “Let us pause on what that means—that increase alone is nearly the combined daily 2011 production of Russia, Canada, and the United Arab Emirates,” he explained.

The role of US and Russia
US crude oil production has soared in the last five years due, in no small part, to unconventional resources and deepwater discoveries. Previously unreachable oil and gas are now being produced, and Dudley believes, more resources will be found and developed.

North Dakota—thanks in part to the liquids-rich Bakken Shale—surpassed California, and more recently, Alaska, to become the second largest oil producer in the US behind Texas.

And, while Texas has long been associated with the oil and gas industry, the Eagle Ford Shale has offered another boost.  The energy industry accounts for 27% of the US job growth since 2008, noted Dudley, and roughly 180,000 of those jobs were added in Texas, he said, citing a recent report in the Wall Street Journal.

Russia, too, has the opportunity to play a large part in the 'global energy journey,' said Dudley.

The largest country in the world, Russia holds the largest combined oil and gas reserves, as well as the highest combined production of oil and gas, he said, noting that the country’s potential "has yet to be realized."

Western Siberia, Eastern Siberia, the Yamal Peninsula, shale and tight oil are all possibilities for increased production in Russia.

Both countries require energy investment "on an epic scale," in an open, welcoming environment. "This is not a business for the faint-hearted or easily discouraged," he said.

 

Related Articles

BP, AeroVironment launch first FAA-approved, UAS over land and water

06/10/2014 In a deal that marks the first time unmanned aircraft systems will perform routine commercial services over land in compliance with FAA regulations, AeroVironment has been contracted by BP to provi...

TPAO to buy Total's stake in Azeri gas project for $1.5 B

06/02/2014 Turkey's state oil company TPAO has signed a $1.5 billion deal to acquire Total's 10% stake in Azerbaijan's Shah Deniz gas project, Reuters said. The agreement increases TPAO's stake in the project...

Aker wins offshore Norway contract from BP

05/30/2014

Aker Solutions has secured a framework agreement to provide engineering, modifications, and maintenance services for BP-operated oil and gas fields offshore Norway.

Value-over-volume strategy working, BP America chairman says

05/14/2014 BP PLC intends to continue following a strategy that emphasizes value over volume which it was forced to adopt to handle liabilities resulting from the 2010 accident and spill at its Macondo deepwa...

BP contracts with Baku Shipyard and Expro for Shah Deniz Stage 2 project

04/24/2014

BP has contracted with Baku Shipyard LLC and Expro for projects related to Shah Deniz Stage 2 in the South Caspian Sea.

More Oil & Gas Financial Articles

BP, AeroVironment launch first FAA-approved, UAS over land and water

Tue, Jun 10, 2014

In a deal that marks the first time unmanned aircraft systems will perform routine commercial services over land in compliance with FAA regulations, AeroVironment has been contracted by BP to provide mapping, GIS and other commercial information services the Prudhoe Bay oil field for a five-year period.

TPAO to buy Total's stake in Azeri gas project for $1.5 B

Mon, Jun 2, 2014

Turkey's state oil company TPAO has signed a $1.5 billion deal to acquire Total's 10% stake in Azerbaijan's Shah Deniz gas project, Reuters said. The agreement increases TPAO's stake in the project to 19% from a previous 9%, while Total exits the project.

Aker wins offshore Norway contract from BP

Fri, May 30, 2014

Aker Solutions has secured a framework agreement to provide engineering, modifications, and maintenance services for BP-operated oil and gas fields offshore Norway.

Value-over-volume strategy working, BP America chairman says

Wed, May 14, 2014

BP PLC intends to continue following a strategy that emphasizes value over volume which it was forced to adopt to handle liabilities resulting from the 2010 accident and spill at its Macondo deepwater oil well in the Gulf of Mexico, BP America Inc. Chairman John C. Mingé said.

BP contracts with Baku Shipyard and Expro for Shah Deniz Stage 2 project

Thu, Apr 24, 2014

BP has contracted with Baku Shipyard LLC and Expro for projects related to Shah Deniz Stage 2 in the South Caspian Sea.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ