OTC 2009 will focus on new technology and the economic environment

Topics ranging from price volatility to Arctic exploration will pack this year’s OTC schedule.  

Krista H. Kuhl, Technical Editor

OTC 2009 promises to continue expanding and improving as the world’s premier event for the drilling, exploration, production and environmental protection of offshore resources.

OTC quick facts. As in previous years, OTC 2009 will be held in Houston, May 4–7, in the Reliant Park complex. More than 73,000 people from over 110 different countries visited OTC 2008—a 26-year high and an increase of 11% over 2007. Nearly 2,500 companies from more than 35 countries participated in the show.

Awards Luncheon. Peter G. Noble, Naval Architect and Marine Engineer, SNAME Fellow and Chief Naval Architect at ConocoPhillips, will receive the 2009 OTC Distinguished Achievement Award for Individuals during the Awards Luncheon on Tuesday, May 5. Also, Sakhalin Energy Investment Company will receive the Distinguished Achievement Award for Companies, Organizations and Institutions at the Awards Luncheon. The keynote address will be delivered by Thierry Pilenko, Chairman and Chief Executive Officer, Technip.

Peter Noble, OTC Distinguished Achievement Award recipient. 

Wolfgang E. Schollnberger, Heritage Award recipient.

Wolfgang E. Schollnberger, Heritage Award recipient. 

Noble will be given the award for his contributions to innovative marine vehicle and floating offshore systems design and engineering, including LNG vessel design, Arctic engineering and icebreaker technology, and for his dedication to encouraging and mentoring students and young professionals.

Sakhalin Energy Investment Company will be given the award for its Sakhalin II Phase 2 Project, which implemented complex integrated project facilities in a technically challenging and environmentally sensitive Arctic environment, and for demonstrating significant achievements in technical excellence, project execution effectiveness and HSES performance.

The Heritage Award will also be presented at the 2009 Awards Luncheon to Wolfgang E. Schollnberger, retired VP, Technology of BP, for his outstanding humanitarian and community service, as well as his service to the industry, through his advocacy of new technology and his leadership of professional society activities, including serving as chairperson of the OTC Board of Directors. The Heritage Award recognizes individuals who have provided distinguished service and significant contributions to the development of offshore resources.

SAFE awards. For the first time, the Minerals Management Service (MMS) will present the national SAFE awards at an OTC luncheon on Thursday, May 7. These prestigious awards have been presented annually since 1983, making it the longest continuous federal awards programs of its kind.

SAFE awards recognize outstanding safety and pollution prevention performance by the offshore oil and gas industry in four categories: drilling contractor, production contractor, high-activity operator and moderate-activity operator. The selections are based solely on objective performance criteria—inspection and incident data normalized for exposure levels—and specific input from MMS district and regional offices.

At the OTC luncheon, MMS will also present its Corporate Leadership Awards to outstanding individuals whose exceptional performance has raised the bar for safety achievement, improved environmental protection, enhanced resource recovery and conservation, or inspired innovation and outstanding performance by others.

Topical luncheons. A variety of topical luncheons will be given this year, offering attendees the chance to hear leading experts discuss such issues as energy policy, the role of IOCs, hurricanes and Arctic projects. Space is limited, so it is recommended that participants buy tickets for the topical luncheons in advance. The four luncheons on Monday, May 4, are “Energy as a common need: Making energy policy less partisan and more productive,” “Future investment in Saudi Arabia and the role of IOCs,” “Oil industry in Brazil” and “Newfoundland and Labrador: An emerging energy warehouse, growth and opportunities.”

There will be three luncheons on Wednesday, May 6: “Arctic projects,” “Hurricanes in a warmer world,” “Peak everything…oil, water, raw materials, and other constraints” and “Construction strategies for future deepwater production facilities.”

The three topical lunches for Thursday, May 7, will be “Oil future: Wall Street vs. Main Stream,” “New concepts for sea-going compressed natural gas” and “Managing energy technology for the 21st century.”

Industry breakfasts and morning reports. OTC joins forces with the US Department of Commerce to offer expert views on business practices in developing regions during breakfast sessions. For 2009, the selected regions are Brazil, offshore Asia and the Caribbean. Because seating is limited, you are encouraged to purchase tickets in advance. On Tuesday, May 5, the breakfast will feature Brazilian government officials and industry executives who will discuss the state of play in Brazil’s upstream oil and gas sector. It will focus on offshore developments, opportunities for small and medium-size companies, and the role of Brazil’s petroleum industry regulator.

On Wednesday, May 6, the breakfast will feature top-level industry executives who will discuss regional upstream and downstream activities with a focus on deepwater exploration and natural gas developments. The briefing also will include coverage of regional oil and gas markets, trends and investment-related issues.

Finally, on Thursday, May 7, the breakfast will provide a forum for Caribbean nations to highlight their offshore oil and gas policies and promote trade and investment opportunities in their oil and gas sectors.

Building on the success of the 2008 “Morning Reports,” the program will again be held in 2009 on Tuesday, May 5, from 7:30 to 9 a.m. The program is titled: “Structuring projects to benefit multiple stakeholders: How IOCs, NOCs, and service companies can collaborate to create shareholder value and promote local development.”

General sessions. This year OTC will feature a general session each day of the conference. The first session takes place Monday, May 4, from 2 to 4:30 p.m., covering “Coping with price volatility: How will it affect major capital projects?” Panelists will discuss how potential projects that could not fly are becoming petroleum fields that are economically attractive now. But the order backlogs of vendors and service companies are loaded, and obviously, scarcity generates price increases. The price of metals, in particular steel, has sharply increased. The result is that the budgets of projects have changed considerably, and with that the sanction process is also impacted.

The second session, “Navigating long-term business in the face of short-term uncertainty,” will be on Tuesday, May 5, from 2 to 4:30 p.m. The panel discussion will focus on the viability of the oil and gas business model, direction of industry restructuring in response to short-term uncertainties, and the impact of the liquidity shortage on companies’ operations. In addition the panel will highlight the importance of understanding complex supply and demand prospects, sustainability, the challenges and opportunities ahead, and the inherent uncertainties contained in the long-term outlook.

The third session takes place Wednesday, May 6, from 2 to 4:30 p.m., covering “Arctic energy challenges and developments.” The panel, comprised of a multi-national group of key figure in the oil and gas industry, will address the growing opportunities that this exploration can offer and how the rewards far outweigh the risks. Specifically, you will hear firsthand how the various players from the world of operators, contractors, governments and independent consultants assess and take on the challenges of energy developments in the Arctic region.

The last session, “When failure is not an option: Managing megaprojects in the current environment,” will occur on Thursday, May 7, from 2 to 4:30 p.m. It will present a multifaceted look at megaproject challenges such as hostile environments, partner and stakeholder alignment, organizational effectiveness and risk management from the viewpoints of a panel representing experienced operators, contractors, project managers and consultants.

Next Wave program. The Next Wave program is scheduled for Wednesday, May 6, and is designed for upstream professionals under age 35 or those interested in meeting them. The 2009 event will focus on how the industry boom will affect young professionals’ careers in the long term. The breakout sessions in the afternoon give attendees the chance to participate in any of more than 30 discussion topics. Topics include career paths, geopolitical challenges and interdisciplinary teams.

Technical program. Throughout the conference, more than 300 papers will be presented during the technical sessions. A sample of the topics includes:

• Technology development for frontier Arctic projects
• From turbidities to carbonates: Breaking paradigms in deep waters
• Regional analysis of seafloor and near-surface sediments for MODU anchors
• Improvements in dynamic loading of ultra-deepwater catenary risers
• Ormen Lange subsea compression pilot: Subsea compression station

A listing of the major technical session topics is located in Table 1. For a more detailed listing of individual papers in the technical program, please check the listings at http://www.otcnet.org/2009/pages/schedule/technical.html.