OTC 2002: Deep into the future

Preview of the technical program for the 34th Annual Offshore Technology Conference, Houston, May 6 – 9

Houston’s new Reliant Center is the site of OTC 2002

For the 34th consecutive year, the Offshore Technology Conference (OTC) will be held in Houston, May 6 – 9, in the Reliant Park (formerly Astrodomain) complex. Founded in 1969, OTC is the world’s premier event for development of offshore resources with regard to drilling, exploration, production and environmental protection.

Through all the new technology developments, political changes and economic volatility of the oil and gas industry for the past three decades, OTC has grown into a stable, valued event for industry executives, engineers, managers and scientists. From its 1969 debut at the Albert Thomas Convention Center in Houston, to its zenith in 1982, to the stabilizing 1990s, OTC has experienced and reflected the offshore industry’s pulse.

The first conference drew about 4,200 attendees and 125 exhibitors. But, as the industry grew, so did OTC. Between 1978 and 1982, during a period of high oil prices, exponential growth was the theme for OTC. At its height, the conference garnered 2,500 exhibitors and more than 108,000 attendees and was forced to spill over into the floor of the Astrodome.

Only two years later, organizers refocused the scope of OTC, maintaining the serious, professional platform of the technical program and the exhibition. The move prompted companies to explicitly use the conference as a way to showcase breakthrough technologies.

A brief period of higher oil and gas prices in the early 1990s allowed for an even higher level of technical innovation, as major projects were undertaken in ultra deepwater and the harsh seas of the Northern Hemisphere. OTC also has recognized how the industry is reinventing itself, and now includes expert panel sessions on how professionals can adapt to change.

OTC is among the largest 200 trade shows held annually in the U.S. and is among the 10 largest meetings in terms of attendance. The 1999 event boasted the second-highest attendance and exhibition since 1985.

Attendance / Exhibits

Last year’s event was as vibrant as ever. Attendance rose 9%, to 47,649, and more than 2,000 companies and organizations exhibited on 400,000 net sq ft of space. The 2001 program featured 49 technical sessions that contained 331 paper presentations.

This year, attendance is again expected to total 45,000 or higher. For the first time in many years, the venue for OTC will be different. OTC 2001 was the last year for the conference to be held in Reliant Arena and Reliant Hall (formerly AstroArena and Astrohall, respectively). After more than 30 years at those two facilities, OTC will be under one roof in 2002, with its move to Reliant Center, a new 1.4-million-sq-ft venue that has just opened. Indeed, the venerable Reliant Hall is scheduled for demolition this year. The new Reliant Center boasts 706,213 sq ft of contiguous, single-level exhibit space. It will be easier to get around and will feature many up-to-date amenities lacking in the old facilities.

The 2002 Technical Program will consist of 49 sessions and at least 285 technical papers. OTC officials again expect at least 2,000 exhibiting entities. They believe the exhibits will occupy at least 385,000 sq ft in the new facility. In addition, there will be eight topical luncheons and two general sessions covering an array of subjects (see the detailed discussions of these later in this article).

Active Arena

Each year, the Program Committee selects one particular area of offshore activity to highlight as its Active Arena. Their selection for the OTC 2002 Active Arena is "Offshore Safety and Security." This selection will focus on new technology, new materials and new engineering methods that enhance offshore safety and security.

As noted by organizers, "The security and protection of personnel is of utmost importance in the design and operation of offshore facilities, transportation and safety systems. Safety procedures and use of ‘best practices’ are necessary to mitigate the financial risk to huge capital investments in facilities and infrastructure."

The Active Arena will be the subject of a technical session on the morning of Wednesday, May 8. Later that day, there will also be a topical luncheon entitled, "Management Actions Implemented After the P-36 Accident." Featured speaker will be Carlos Tadeu da Costa Fraga, South-Southeast Executive Manager for Petrobrás E&P.

General Sessions

For a "macro" view of key issues facing offshore professionals, the two general sessions provide a platform for spontaneous discussion and unrehearsed presentations. This year’s topics focus on deepwater E&P and the new global energy economy.

Session 1, on Tuesday afternoon, addresses Offshore Gas Development: A Critical Factor in Global Energy Markets. Offshore natural gas reserves promise significant potential to meet critical energy needs today and in the future. However, recovery of these resources represents a number of challenges. The panel will address the technological requirements necessary to develop offshore natural gas resources, along with the commercial strategies needed, including policy considerations.

Session moderator will be Michelle Michot Foss, director of the Energy Institute at the University of Houston. She will be joined by panelists James Ball, Gas Strategies director and managing partner, EconoMatters Ltd.; Donald Condon, Jr., president and general manager, Conoco Energy Ventures Inc.; John Darley, director, Shell Technology E&P; and Kathleen Eisbrenner, chief commercial officer, El Paso Global LNG.

Session 2, on Wednesday afternoon, is titled, What is the Future for Offshore Project Evaluation? The climate for offshore project execution is changing rapidly. Companies are downsizing and merging, while increasing reliance on service and support organizations. There are fewer new graduates entering the industry, yet projects feature growing complexity. Thus, the future success of offshore programs will require major changes in current project execution models. This session will address the changing landscape and discuss the issues related to major project execution in the industry.

Session moderator will be William R. Barger, E&P area manager at Independent Project Analysis Inc. Panelists will include Gary Hagstrom, general manager, Project Resources, ChevronTexaco Corp.; Mahdi Hasan, vice president, Development Execution, Shell International E&P Inc.; Bill Higgs, co-founder and executive vice president, Mustang Engineering Inc.; and Richard E. Westney, founder / CEO, Westney Project Services.

Technical Sessions

Including the two general sessions, OTC will stage 49 technical sessions over three-and-a-half days. Seven sessions will be presented concurrently each morning and afternoon in locations to be specified.

World Oil has categorized the technical sessions into six operational functions, to give readers an overview of the offshore technology available for various professional areas of interest. The accompanying table lists the categories of interest, the individual session titles within those categories and the times they will be presented.

Not surprisingly, deepwater and subsea topics comprise a third of all sessions, totaling nine and seven, respectively. Facilities and equipment design is actually the largest category, with 12 sessions. This grouping includes everything from floating production designs to control/instrumentation to design strategies for fire and blast.

A number of countries and/or their major offshore field developments are the subject of their own sessions. These include Angola’s Girassol field – which is large enough to justify two technical sessions; the Malampaya project offshore the Philippines; Equatorial Guinea’s La Ceiba field and three developments offshore the U.S. – Brutus, Typhoon and Nansen / Boomvang.

Awards Luncheon

OTC recognizes outstanding work and service in the industry by honoring an individual and an organization or company each year at the OTC Awards Luncheon. The event will be on Tuesday, May 7. This year’s recipients are Bruce G. Collipp and ExxonMobil Development Co. Collipp will receive the Distinguished Achievement Award for Individuals in recognition of his invention of the world’s first semisubmersible floating platform, early in his 33-year career with Shell Oil Co. He also later led the team that developed the platform.

ExxonMobil will receive the Distinguished Achievement Award for Companies, Organization and Institutions in recognition of the Hoover Diana Project. This project has been the first simultaneous co-development of multiple deepwater fields. It is recognized for significant advances in drilling, subsea and riser technologies.

In addition, OTC will award a "special citation" to the Artificial Reefs Program, for its efforts and impact on the environment.

Topical Luncheons

Among OTC’s most popular events are the Topical Luncheons. As usual, there will be eight of these luncheons spread over two days, May 6 and 8. The Topical Luncheons offer attendees the opportunity to hear leading experts on management, implementation, research and technology issues related to the offshore industry. Concurrent with OTC’s move to the new Reliant Center, the luncheons will be held within this venue. So, for the first time, they will be under the same roof as the rest of the conference. The Monday luncheons include:

1. Subsea Project Execution – The Vision. Hal Goldie, vice president, Offshore Systems at Cooper Cameron Corp., will describe a vision and plan to meet the industry’s subsea field development needs around the world. Goldie will discuss technical advances, effective project management and new technical challenges and solutions. These all comprise the project management innovations needed to work toward successful subsea field developments anywhere in the world.
2. Getting Ready for Deep Water. Paul J. Pluta is a rear admiral and assistant commandant for Marine Safety and Environmental Protection in the U.S. Coast Guard. He will discuss the philosophical foundation, process and status of deepwater petroleum reserves in the Gulf of Mexico. This is a major development that looms large on the horizon.
3. Deepwater Drilling Systems: Evolution and Integration with Production Systems. Norman Brammer, vice president at ABB Vetco Gray, will be the featured speaker. He will describe how new drilling challenges, techniques and equipment all contribute to the industry’s future. Yet, the integration of drilling and completion offers the additional, significant promise of cost reduction and risk mitigation. Brammer will discuss drilling solutions and industry barriers in some depth, with examples of breakthrough thinking that can produce considerable improvement in the economics of these activities in very deep water.
4. Supercavitation Technology. Ivan Kirschner, senior principal scientist at Anteon Corp., will give an overview of recent research in the supercavitation of high-speed bodies. This includes the results of selected experiments with supercavitating projectiles at supersonic speeds in water, plus several topics in computational methods and simulation.

Wednesday’s topical luncheons will include:

1. Management Actions Implemented After the P-36 Accident. Carlos Tadeu da Costa Fraga is the South-Southeast executive manager for Petrobras E&P. He will discuss the Operational Excellence Program for the Offshore Units that was created after the conclusion of the P-36 MOPU accident investigations. This program includes several actions in different areas, such as safety, engineering, operations, stability and ballast, maintenance and human resources.
2. The World Economy: Sluggish or Vigorous Recovery. Malcolm Gillis, president of Houston-based Rice University, says that energy markets have been sensitive to the vicissitudes of the global economy in recent years. In this presentation, he will attempt to assess the recent record and forecast prospects for U.S. and world economic performance, with some extensions to the outlook for oil and gas.
3. Global Deep Offshore Strategy. Michel Benezit, president of TotalFinaElf E&P in Africa, will introduce one of his firm’s most innovative projects, the GOM Canyon Express. This global deep offshore strategy, a follow-up to 40 years of innovation that includes Girassol field, will be presented.
4. Achieving "Best in Class": A Contractor’s Challenge. Tom Ehret is president of the Offshore Branch at Technip-Coflexip. He will review and analyze the challenge of being "best in class" among offshore contractors. The key is to identify those areas that can make the most difference in successful, competitive project execution. His presentation will focus on human resources, technologies, assets and management principles.

Industry Breakfasts

Introduced just last year and considered very successful, the industry breakfasts return to OTC 2002. These events bring specialists from a variety of affiliated fields related to the offshore industry. Presentations typically look toward the future or examine real-life examples in such areas as finance, project management or global economics.

The dates and topics include:

• Tuesday, May 7; Business Opportunities in Nigeria’s Oil and Gas Sector. This session focuses on the emergence of, and potential for, deepwater field projects offshore western Nigeria. It will also look at related business opportunities for service and equipment companies hoping to establish a position in this region. Presentations will be made by Nigerian government representatives, major oil companies in the region and procurement specialists.
• Wednesday, May 8; Geopolitics of Oil and Gas and Its Influence on Prices Into the 21st Century. This session will discuss the changing politics in the Middle East, the U.S. and Central Asia, and how those regions will affect oil and gas markets in the years to come. There will be a look at events in the post-Sept. 11 period and how they are changing the outlook for international oil and gas markets in surprising, dramatic ways.
• Thursday, May 9; Offshore Research, Development and Delivery Initiative for U.S. Ultra-Deepwater Oil and Gas Production. This session will utilize the perspectives of independent and major producers, service / technology providers, academia / research organizations, financial institutions and governments. There will be a discussion of methods for increasing natural gas and petroleum R&D investment needed to spur U.S. production.