ONS 2000 looks at constant need for new approaches
ONS 2000 looks at constant need for new approaches
ONS Managing Director Kjell Ursin-Smith says, "Our role is to help the industry find its future. We are now in the process of developing ONS into the national meeting place for the world’s oil and gas industry, where the issues of the day will be discussed and the technology of the future exhibited."
ONS ranks as the largest international event staged regularly in Norway, and it is one of the premier oil and gas events worldwide. As before, this year’s bi-annual event will be held August 22 – 25 at Siddis Centre in Stavanger (see diagram). In addition to the Conference program stretching over four days, a major exhibition of the latest E&P and pipeline technology will be staged on the show grounds. Approximately 20,000 sq m (214,000 sq ft) of exhibition space will be used, and at least 16 national pavilions will be featured. These will include the U.S., UK, France, Germany, Italy, the Netherlands, Sweden, Western Australia, Northern Australia, Russia, Newfoundland and Labrador, Denmark, Finland, Belgium, Austria and the Faroe Islands.
An "exploration promotion forum" is featured this year. It will comprise a series of presentations on opportunities in five highly prospective countries – Angola, Azerbaijan, Brazil, Iran and Nigeria. Plans for the forum and visits by delegations from these countries have been developed in close cooperation with Intsok, the organization for promoting internationalization of Norway’s offshore industry. The forum will allow each nation’s delegation to present plans for field development and operation to ONS attendees. Venue for the forum will be in the conference center, just opposite the press center. Another interesting piece of ONS this year will be a "conflict management in the petroleum sector" seminar. This event will examine the role of petroleum companies in developing democracy and conflict management, and it is organized by Worldview Rights. It represents a follow-up to the roundtable discussion on human rights and the oil industry at ONS in 1998. The seminar program includes an analysis of the manner in which operators deal with conflicts while working in countries known to violate human rights. There also will be a focus on "proactive engagement" by oil companies in conflict prevention and resolution. Once again, the Stavanger Oil Festival returns in conjunction with ONS. Introduced in 1992, it offers a series of cultural events for visitors and local residents. It will be a cultural collaboration between Stavanger; the oil base ports of Kristiansund and Harstad; the oil cities of Aberdeen, St John’s and Perth; and the Faroe Islands. These partners will present their own local cultures through art, music, food, entertainment and tourist information. A large, outdoor stage in Stavanger’s central marketplace will offer top entertainment on Tuesday, Wednesday and Thursday evenings. A special ONS late-night cafe also is provided this year in response to a number of requests. It will be open from 10 p.m. to 3 a.m. in the Radisson SAS Royal Hotel and offer entertainment, a bar and light refreshments.
General Conference Speakers in this first ONS session, spread over parts of the first two days, will discuss some of the unprecedented changes facing the oil and gas industry, as it moves into the 21st Century. Among the driving forces that will be covered are:
The first factor, oil price volatility, is forcing the upstream industry to be conservative in its outlook. As in other extractive industries, a current objective is to be a low-cost producer. This way, an oil company can feel that it is positioned best to survive at the bottom of a cycle. Meanwhile, financial markets are putting constant pressure on publicly-traded oil companies to improve financial and operating results. In reaction, there has been considerable consolidation through corporate mergers – size and diversity are at a premium. As regards liberalization, natural gas and electricity markets are opening up to more competition and business opportunities. Multi-utility concepts are being promoted, and e-commerce outlets are looking to play a role. Consolidation and alliances will likely follow. One must also not forget the increasing role that geopolitics play in transregional mega-projects. Last but not least, health, safety and environmental aspects are increasingly coming to the forefront. Responsible entities outside the industry are demanding performance on these issues and are holding management members accountable. In the Wednesday morning portion of the General Conference, an assessment of these challenges will be provided by political authorities from two very different oil-producing countries – Norway and Venezuela. Due to the significant differences in these two oil provinces, their approaches to handling the latest set of challenges should be quite varied, too. In addition, how energy-importing nations (particularly in Europe) define their energy policies and set priorities will be the subject of discussion. Some of the Tuesday afternoon speakers will include Norwegian Prime Minister Jens Stoltenberg; Royal Dutch / Shell Chairman Mark Moody-Stuart; and Halliburton Co. Chairman and CEO Dick Cheney. On Wednesday morning, invited speakers include Norwegian Petroleum and Energy Minister Olav Akelsen; PDVSA President Hector Ciavaldini; French Deputy Industry Minister Christian Pierrer; and BP Amoco (UK) Managing Director Richard L. Olver. Natural Gas Session Presentations in this session on the afternoon of day two will examine intertwined challenges faced by the natural gas and electrical power sectors. The demand for natural gas in the European market is growing steadily and is making inroads into the power generation market. Long-term prospects are bright, as Europe’s gas and electricity markets go through extensive changes. Initiatives by the European Union and national governments are changing the rules of the game. Competition is taking new forms and introducing unfamiliar elements of risk and uncertainty to players in the marketplace. Direct marketing of electricity has triggered intensive price competition in some countries. The bundling of energy forms and services is thought to create customer loyalty. Accordingly, speakers will examine whether vertical integration will be a bonus or a handicap. Some of the speakers will include Statoil Senior Vice President Peter Mellbye; Gazprom board member Yury Komarov; and Nederland Gasunie General Managing Director Georg Verberg. Technical Sessions The use of new technology to both improve oil/gas exploitation and enhance the environment, will be the subject of the technical sessions on Thursday morning and afternoon. In the morning, emphasis will be on a broader, globalized approach, while the afternoon presentations will focus more narrowly on Norwegian technology challenges. Breakthroughs in units costs, and environmental / safety performance will be key themes for the global industry in the future. As before, new technology must continue to provide the needed tools. Downhole fluid separation, long-distance tie-backs and subsea systems are some of the offshore technologies that show promise for the next five years. The afternoon session will look at how these will impact the northern seas, from modern exploration techniques to developments in deepwater frontiers. Special attention will be given to solutions for smaller, marginal discoveries, typical of these maturing provinces. Appreciation of how the technology will work is no longer the sole preserve of specialists. Governments and society want to understand how environmental protection will be improved by new technology. Investors also need insight into the business performance that it will deliver. Companies must work out how to develop and apply technology in a world of rapid, open communication. This often leads to new contractor / client relationships. To develop the needed solutions, industry needs to attract and develop the best young talent, in competition with enterprises in the so-called "new economy." Again, rapid technological development in creative learning and working environments will be a key factor. Among the session presenters will be Norske Shell Managing Director David Loughman; Shell Director of E&P Technology Tim Warren; Norsk Hydro Senior Vice President, Exploration, Helge Hove Haldorsen; and Conoco (UK) Ltd. General Manager, Business Development, Eric Bell. Topical lunches will be held at the nearby Rogaland Art Museum on Wednesday and Thursday. The subject for the Thursday lunch is, "Will world oil production ever start to decline? And if so – why?" Closing Session Focus of these presentations will be on energy, environment and capital needs – the long-term outlook for the Northern Seas industry. Again, with some similarity to the General Conference sessions, a number of challenges facing the upstream industry will be addressed, including volatile oil prices, increased competition and changing oil policies. An additional challenge relates to environmental issues – including the
need to take a long-term perspective in responding to the global market demand for more
environmentally-friendly solutions. The session will include an examination of the competition for capital
that the upstream industry must engage in with other businesses and industries. Statoil Group President and
CEO Olav Fell also will give the outlook for the Norwegian energy industry.
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his year’s
Offshore Northern Seas (ONS) Conference theme reflects operators’ concerns about finding new ways to do
business to remain competitive in today’s financially demanding upstream industry. Fundamental changes
involving prices, opening of markets, demands by the financial community, and the impact of health, safety and
environmental issues are discussed. 
