Print this pageOil and Gas Independents- The Next Golden Age of Exploration
FINCK, THOMAS G.
World oil demand is expected to increase at a rate of at least 1 1/2 percent into the 21st century, creating a need for an additional eight million barrels of oil a day. The steady rise in demand is being driven by developing world economies and emerging energy markets, particularly in Asia and Latin America where massive transportation infrastructures are springing up overnight.
It is a time of unparalleled opportunity for large independents who are gearing up to do "real" exploration. This is especially true outside the U.S. where oil and gas companies with ample capital to fund exploration programs can make discoveries with significant cash-fast low margins and long-lived reserves. These are the building blocks to deliver exceptional value to partners, investors and suppliers.
The independent's challenge will be a shortage of talented explorers, forcing companies to operate more efficiently and to use technology more effectively.
To be successful internationally, it's essential independents: (1) Have the right acreage inventory. Large, multi-play leasehold positions enable companies to make long-term commitments and pursue innovative ideas. (2) Establish substantive relationships with host countries. Business leaders and government officials are eager to develop their country's natural resources. (3) Use the appropriate sophisticated technology. Why use 3D seismic when 2D will do? (4) Hire the best and the brightest. Hydrocarbons are found in the minds of explorers. Listen to them.
The energy business has entered a new cycle, and the upturn has begun. Clearly, the international arena is the place to be!