The Brazilian opportunity for everyone is very real, the resource is there, and it can be developed. As evidenced by Libra recently starting production, new technology is critical to maintaining growth.
Recovery rates now are at about 30 per cent. Increasing this to 45-50 per cent would be a huge opportunity. The opportunity is from being able to bring lifting costs down to under $8 a barrel. Pumping and power are the key areas to make this happen. Linking subsea wells has been shown to make pressure management easier. Hence, the timeliness of a specific subsea multiphase boosting technical conference is there.
Re: Getting HVDC projects to ‘break ground’ in Mexico before the year ends
What you do for business development on HVDC is essential at the company.
You know it. Your colleagues know it. But I bet they only get excited about what you do when the contract is in and the projects are online.
With much certainty, Mexico wants to reduce its network losses by 8 per cent through HVDC, savings from which can then be passed on to the people. Through an efficient long-distance electricity transmission highways, the project will enable to export power from South-eastern Mexico (large renewable resources but lack of transmission infrastructures) and to improve power supply in central Mexico where electricity consumption is highest.
Yet here’s the truth about new HVDC infrastructure projects, especially in Mexico:
The Center for Energy Sustainability and Economics has been in close consultation with CFE, the Office of President and of course - technology providers and component parts suppliers like you - to design a valuable conference specifically for HVDC and getting these challenges sorted before the end of the year.
The 2017 CESE Building and Operating HVDC Energy Highways Executive Conference will take place October 19–20, 2017 at the NH Collection Mexico City Reforma* in Mexico City, Mexico.
HVDC Energy Highways is the premier event for electric utility professionals and contracting, construction, and consulting companies who are interested in senior executive-level insight and solutions for the engineering, construction, operation and maintenance of High Voltage Direct Current power transmission systems.
The program features a packed two days of senior executive engagement, deal-making opportunities, hands-on technology demonstrations, and a half-day master class on emerging HVDC technologies to help Mexico bring new power generation on-stream to service its growing economy.
The conference will also include presentations by recognized worldwide experts, executive case studies, and interactive discussion session along with an exclusive industrial exposition. The conference will focus on the latest state-of-the-art HVDC technology and lessons learned for building and operating HVDC energy highways successfully in Mexico and the region.
“Technical confusion causes delays in projects,” says one delegate at this conference.
That’s why the 2017 HVDC Energy Highways Agenda is packed with technical gems that can make the task easier. After all, you want to be feel confident on the economic value when you are committing USD 500,000 per kilometer in HVDC set-up costs.
Because the goal of the conference is highly focused - we are limiting attendance to decision-makers and serious technical experts ONLY who can help make the HVDC dream a reality.
“We are coming in big, because we’d like to convey to the Mexican government that we are serious partners. We can fund, build, operate and maintain HVDC projects - a one-stop shop - and we have a successful track record to back this up,” says one sponsor at the 2017 HVDC Energy Highways conference.
Being more discriminating with supplier choices at the get-go will lessen negotiation hiccups. CFE and other State Grid Operators in the Americas are convinced of the benefits of HVDC technology - the network losses from the current set-up are astounding - so track record and solid experience are business-critical success factors. “We need to bring power to the people cost-effectively,” says one regulator.
“Technical expertise in HVDC and a strong smart grid that can be made to be easily understood are critical components in Mexican Energy Reform.”
3 BENEFITS OF ATTENDING 2017 HVDC ENERGY HIGHWAYS CONFERENCE:
-1- Finalize any ongoing HVDC contract discussions in advance of Mexico's Presidential Primaries in early 2018
-2- Stop any more negotiation delays and get your technology prioritized
-3- Understand more fully what it takes for your HVDC build-and-operate projects in Mexico to be successful
EMAIL FOR FREE CONSULTATION ON THE BEST EXPOSURE PACKAGES FOR YOUR TECHNOLOGY.
Let's talk about your most effective front-door strategy. Whether it’s a dedicated dinner or lunch with decision makers or an effective thought leadership presentation to win the next multi-million dollar contract, the minimum package starts at only USD 5,500. We have a full team to help you customize - Gala Dinner, lanyards, translators, the whole nine yards.
3 quick easy ways to jumpstart your HVDC business in Mexico To confirm your participation:
The capex in deepwater exploration will jump 69% by 2019; the race to expand in Brazil is indeed happening.
Exxon Mobil, the only big oil company without a major foothold in Brazil, is in talks to gain access to the country’s prized deep-water resources.
Shell doubles deepwater production and invests $10 billion in Brazil.
This investment makes perfect business sense despite the low oil price because your upstream business must be anchored in a major state player at times of low break-even prices.
Deepwater Brazil is one of the most important oil frontiers. Don't just take our word for it.
With as much as 50 billion barrels of recoverable resources, Brazil, some analysts say, has the opportunity to emerge as the world’s fifth-largest crude producer by 2025, behind only Saudi Arabia, Russia, the U.S. and Iraq.
“Everybody wants to get a piece of the pie,” said Kjetil Solbraekke, senior vice president for South America at consultancy Rystad Energy. “These are probably the most prolific, high-returning oil assets available in the world.” (WSJ report)
It is a true story: deepwater drilling business is up, but sadly, not all are meant to succeed.
The challenge: The low crude oil price sinks to a new low and might just stay there.
So ensuring commercial viability of deepwater exploration to first oil can be a wild goose chase.
Oil companies have piled on debt as profits dwindled amid low oil prices, that will force you to rethink your commitment to high-cost mega projects.
Big oil companies such as Exxon Mobil and BP PLC have abandoned extravagant project bets they made at $100 a barrel—in favor of cheaper, quicker ventures in Texas shale country, the Middle East and Brazil.
Shell is going lean, focusing on smaller-scale projects that produce “first oil” faster.
The company’s longstanding objective of increasing production and replenishing reserves, costs be damned, has taken a back seat to delivering returns to shareholders on every single barrel pumped.
With onshore shale oil flooding the market, Shell executives are concerned when crude, currently around $50 a barrel, will fetch more again. And with electric cars and other technologies threatening to eat into demand, they believe the world’s thirst for oil may peak as soon as the end of next decade.
Shell’s top executives stop short of saying the mega-drill era is gone forever.
No oil and gas operator will be comfortable spending $10 billion to $20 billion on moonshot projects. Operator investment returns have fallen from 25-30% to 10-15%. It has become abundantly clear that the industry has to fundamentally reassess how it goes about the business of developing complex, capital-intensive upstream projects in general and deepwater projects in particular, especially in what could be a substantial period of low oil prices.
That means deepwater projects have to be able to compete on price with opportunities operating companies have in shale and in onshore basins around the world.
Then there's another challenge: Is your equipment going to be reliable when you are pushed to drill in greater depths?
In the last three to four years, deepwater development capex inflation has been outpacing inflation of oil and gas prices, which have plateaued and dropped by half in the past year. Capex of many deepwater projects routinely exceed $5 billion, driving them into the so-called "mega project" category. Even major operators and contractors with sophisticated project management processes and capabilities are struggling to achieve acceptable commercial results in these circumstances.
Cost inflation of goods and services has accounted for much of the capex and opex inflation since 2004. However, geographic, geologic, and geopolitical trends also conspire to significantly drive up the cost, complexity, and unpredictability of today's deepwater projects.
What technology concept are you going to choose? And how confident will your team be in that decision that it's going to work?
Because of equipment reliability issues, BP has sold off roughly $75 billion worth of assets, slashed spending and worked to bring down costs to cope with the dual challenges of its Gulf of Mexico liabilities and slumping oil prices over the past six years.
Because of the complexity of offshore production and as flow rates, hydrocarbon mix, and other factors become clearer, the premise for the specific designs can be wildly inaccurate, impacting the effectiveness of the vessel. Because each field development is unique, one-off designs have been employed, leading to a fleet of units with varying characteristics.
This brings difficulties when redeployment is required and increases the need for conversions and re-conversions, often the most challenging engineering, procurement, and construction projects when unknown qualities and difficulties arise throughout the latter stages of development. This has led to cost overruns above the already-high industry average.
The companies whose project teams can deliver the lowest cost-per-foot reservoir will be favored.
Prepare your team at DEEPWATER BRAZIL 2017 and ensure a resilient, profitable deepwater business.
By now you’ve already paid too much just to go through the learning curve.
The Center for Energy Sustainability and Economics, together with partners from the deepwater industry in Brazil and oil service companies, has designed an agenda that will ensure our deepwater project teams are prepared for the lowest cost-per-foot reservoir delivery.
Bring your project teams to attend DEEPWATER BRAZIL 2017 and be able to: