Preview of OTC 2005

OTC 2005 seeks to offer solutions to challenging upstream issues

Topics ranging from how use of technological gains can meet burgeoning world energy needs to how the industry must cope with manpower deficits will pack this year’s OTC schedule.

“A Sea of Resources, An Ocean of Knowledge” is the theme at this year’s Offshore Technology Conference (OTC) in Houston. As the world’s foremost event catering to the global upstream industry, OTC continues to innovate, a fact reflected in the show’s continued strong attendance that hit a 19-year high in 2004. This year, managing partner SPE and its sister sponsoring organizations have found additional ways to improve the OTC experience. 

Among this year’s changes and improvements, there will be some alterations to the registration process to make it easier. In addition, OTC will offer a course that covers training for the ethics requirement of the Professional Engineers certification. Also, the number of topical luncheons has been expanded to a record 10 sessions.

OTC quick facts. For the 37th consecutive year, OTC will be held in Houston, May 2 – 5, in the Reliant Park complex. Attendance in 2004 hit a 19-year high at 50,921, and the number of attendees, representing about 110 countries, should equal or exceed that figure next month. 

Attendees and exhibitors, alike, will be pleased with this year’s changes in the OTC registration process.

Including outdoor stands, exhibit space is projected at 398,000 sq ft. Roughly 2,120 companies will occupy that space, representing 27 countries. The technical program should grow slightly again, with 320 or more presentations projected.

Governor Rick Perry. As this article went to press, Texas Governor Rick Perry had been invited to speak to the General Session on Wednesday, May 4, but his attendance had not been confirmed. Nevertheless, the governor is an enthusiastic supporter of OTC’s mission and content, a message he wants industry to hear loud and clear.

Texas Gov. Rick Perry’s administration has been particularly supportive of OTC.	Kim Vandiver is this year’s individual recipient of the OTC Distinguished Achievement Award.

“This conference has a tremendous impact to the Houston economy, and by extension, to Texas overall,” said Gov. Perry. “Over the last five years, this conference has brought Houston over $241 million in revenue. While this industry drives the state’s economy and is the backbone in many of our Texas towns, we couldn’t be more excited to continue hosting this conference.”

Although technical advances are taking some of the risk out of E&P activity, the US industry cannot afford to be passive, noted the governor. “From a competitive standpoint, the message is clear. To maintain a competitive advantage around the world, companies must continue to upgrade and innovate around their technologies. Collaboration and coordination must drive the R&D process, in a market-driven environment that takes industry’s needs, channels them to the colleges and universities of Texas, and delivers quality innovations that keep Texas and the US in a leadership position.”

Topical Luncheons. As noted earlier, the number of topical luncheons has been increased to 10. There will be four luncheons on Monday, May 2, including “The Big Surprises in 2005”, “Canada’s East Coast Offshore Opportunities,” “Innovative Approaches to Gathering Systems for Producing Wells in Deepwater,” and “The Critical Role Technology Has Played and Will Play in the Global Reach of BP’s Exploration Efforts.”

Additionally, there will be a record five luncheons on Wednesday, May 4, including “Estimating Oil and Gas Reserves – Our Most Important Asset,” “The Energy Resources Demand in China and Development of China’s Oil Industry,” “Security Issues for Offshore Oil and Gas Industry,” “Engineering Drives Projects…What Drives Engineering,” and “The Future of Subsea Technology.” Finally, on Thursday, May 5, one luncheon will address “Opportunities and Challenges in the Deepwater Gulf of Mexico.” A second, late addition will feature Pam Plagens of the US Dept. of Commerce, who will speak to “Using Export-Import Bank Financing for Offshore Projects – Algeria example.”

Industry Breakfasts. An outstanding slate of breakfast sessions is on tap for OTC 2005. On Tuesday, May 3, the topic is “Canada’s Evolving Offshore Oil and Gas Industries,” featuring the energy ministers of Newfoundland & Labrador, and Nova Scotia. On Wednesday, May 4, will be the annual “Norwegian Offshore Opportunities” breakfast, hosted by the US Department of Commerce and the OTC Board of Directors, to highlight Norway’s efforts to boost E&P activity on its continental shelf. Perhaps the most intriguing breakfast session will be on May 5, when the theme, “Libya: Status of the Oil and Gas Sector,” will be discussed. Also hosted by the Commerce Dept. and the OTC board, this session will offer public and private sector presentations on commercial prospects within Libya.

Awards Luncheon. J. Kim Vandiver and Kerr-McGee Oil and Gas Corp. and Technip will receive this year’s OTC Distinguished Achievement Awards during the Awards Luncheon on Tuesday, May 3. Keynote speaker will be ChevronTexaco Vice Chairman Peter J. Robertson. Vandiver is a professor of mechanical and ocean engineering at Massachusetts Institute of Technology. He will receive the individual award for numerous technical breakthroughs in the dynamics of vortex-induced vibrations that have enhanced the design of structures to withstand high ocean currents. The companies award goes to Kerr-McGee and Technip for their successful global relationship that has pioneered and delivered three generations of spar production systems in nine years.

Spotlight on New Technology. First introduced last year, this program will continue, with 13 firms designated to receive recognition for innovation. These companies include AGR Subsea, Aker Kvaerner, Cameron Division of Cooper Cameron Corp., Expro International Group PLC (two awards), Halliburton’s Energy Services Group, KROHNE Inc., Kvaerner Oilfield Products, Mustang Engineering, Norse Cutting & Abandonment, ProPure AS, Schlumberger, Shaffer (a National Oilwell Varco company) and Weatherford International.

“In its second year, the Spotlight on New Technology program continues to serve as a stage to highlight the most innovative and significant offshore developments during the year,” said OTC ‘05 Chairman Rod Allan. “These recipients demonstrate the increasing technical edge that is required to explore and produce in ever-increasing water depths, and more remote and hostile environments. The products recognized in this year’s Spotlight program will help bring offshore development to new depths – depths that just a few years ago seemed impossible.”

Technical program. Roughly 320 papers will be presented in the Technical Sessions during the four days of OTC. Some of the hotter topics include:

• Controlled source electromagnetics
• Deepwater associated gas transport
• Red Hawk project
• LNG
• Quantifying risk and uncertainty in geohazard site assessment for facility engineering
• Natural hydrates. 

Readers desiring more detail on the technical program can find listings at http://www.otcnet.org/2005/tech_prog/index.html

Registration changes. OTC is implementing two changes on-site to ease the registration process. First, there will be additional self-registration areas between Lobby B and D. Also, there will be three “Badge and Go” areas, where attendees can print out their badges without having to stand in line. OTC has hired 23 “people movers” to help assist attendees, showing them the most convenient way to get registered. Exhibitor registration has also been made more convenient with hours available during move-in, the week prior to OTC. 

Breakfast certification course. Another new item at OTC 2005 is the breakfast session on Monday morning (not to be confused with the Industry Breakfasts) that offers training for the ethics requirement of the Professional Engineers certification. This breakfast will be presented by Patricia D. Galloway, CEO at The Nielsen-Wurster Group. She will present her views on what ethics are all about, and how ethical behavior manifests itself in everyday life. Galloway also will address professional ethic questions facing engineers in the international offshore arena, including licensure, corruption and bribery, and sustainability concepts in engineering projects. Certificates will be distributed at the close of the session. 

General Session on manpower. Among two General Sessions at OTC, perhaps the discussion entitled, “Demographics in Our Industry – Addressing the Upcoming Personnel Shortage,” is the most critical. North American E&P firms will likely lose more than 60% of their employees, along with their experience and knowledge, in just five years. Since industry employment peaked in 1982, the top 25 surviving companies have cut more than 1 million workers. Average E&P sector age is 49, and many employees expect to retire at 55. If professionals continue to leave and retire at the current pace, E&P companies’ ability to make sound business decisions and to meet the increasing demand for energy will be impacted. Enrollment in US engineering and geoscience degree programs is down 50% to 80% compared to the early 1980s. Panelists will examine how the US industry can fulfill its needs for competent and talented professionals.

Indeed, Gov. Perry, who has been invited to address this session, worries about the same problem from a Texas viewpoint. “Texas is an energy state, but there is one other major issue – the workforce,” he said. “While Texas has traditionally furnished much of the talent, as well as the technology, that has grown the industry, we must continue to upgrade our workforce along with our technology. Many of today’s workers in the petroleum industry are approaching retirement age, and it is difficult to attract new people. It’s not just engineers and geophysicists that the industry needs; it’s welders and pipefitters and draftsmen and all of the skill sets that go into Texas’ leadership position.”