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Energy Conference Trinidad and Tobago
Brian McShane - Senior Vice President, Americas
Deep Water in
the Caribbean
As we journey through the world we see continual
changes in the energy sector ranging from how it’s
consumed, to a heightened sensitivity for social and
environmental impacts and significant reductions in
commodity pricing.
Change is inevitable, but today’s energy sector -
particularly in hydrocarbons - is dramatically
changing relative to the norms that we have become
used to over recent years.
The Evolving World
of Energy
Commodity Pricing
• Reducing available capital for projects
• Forced industry consolidation
• Reducing available resource capacity
• Experienced personnel and knowledge
base are retiring
United Nations - Paris Agreement
• 125 of 197 countries have ratified the
proposal of keeping global warming to <2⁰C
(including many CARICOM nations – e.g.
Barbados, Guyana, Trinidad and Tobago)
• Forecasts estimate that fossil fuel
consumption needs to reduce by 35%
• A number of countries have drafted their
Nationally Determine Contributions (NDCs)
Global Warming
Total U.S Greenhouse Gas
Emissions by Economic
Sector in 2014
• Forecasts are predicting a significant increase
in the use of renewable energy over the next
25 years
• Power generation capacity is significant -
>50 MW
• Cost of energy storage is reducing
Renewable Energy
• Battery technology
• Electric vehicles (e.g. cars, bikes etc.)
How quickly will they
change the landscape?
New/Disruptive Technologies
It wouldn’t be the first time:
• 1913 - New York Avenue
• Model T Ford first produced in 1908
• Now cars are the main form of transportation
• This happened in less than 13 years
New/Disruptive Technologies
Image credit: George Grantham Bain Collection
http://www.shorpy.com/node/204?size=_original
Reference: https://www.youtube.com/watch?v=Kxryv2XrnqM
Industry
Response
• Reduced CAPEX solutions
• Accelerated delivery schedules
• Ensure certainty of outcomes
• Compete globally
Cost Efficiency
Refresh Energy Delivery Strategies
• Start to balance the energy footprint – not
just fossil fuels
Revisit Energy Consumption
• CNG vehicles
• Use Renewables to supplement energy
• Electric vehicles including bikes when they
are ready
Energy Consumption
• One team
• Recognize that we have to change how we
work together
• Align stakeholders across the value chain
(Upstream, midstream, downstream) to
enable projects to be successful
• Be proactive in helping each other
• New partnering/ contracting strategies
Collaboration
• Revisit alternate solutions that provide
significant CAPEX reductions e.g. Low Heave
Semi Submersible
• Implement effective standardization
New Solutions/Approaches
Deep Water Activity
in the Caribbean
Trinidad
• Exploration wells drilled by
BHP during 2016 – LeClerc
(BHP/Shell) and Burrokeet
(BHP/BP). Results being
assessed
• BP are planning exploration
in the Columbus basin
• Continued exploration
activity
Deep Water Activity in the Caribbean
Guyana
• Exploration continues to be
successful on Liza
• ExxonMobil moving forward
with Liza development
Sanction scheduled for 2017
• Seismic surveys:
• Completed in adjacent block
(ExxonMobil/Mid Atlantic/JHI)
currently under assessment
• More planned for other blocks
in 2017 (Repsol/Tullow)
Suriname
• Increased activity in block
ownership
• Seismic program for
deepwater Block 58
(Apache) and Block 42
(HESS/Chevron /Kosmos)
• Drilling planned by Apache
in Block 53
• Knowledge sharing and Public Education (e.g. publications, lectures, workshops related
to deepwater etc.)
• Coordinate resource needs across the CARICOM nations (e.g. Supply of fuel, vessels etc.)
• Expand existing port and key side facilities to meet the needs:
• Receiving, offloading, and loading of line pipe, subsea structures, umbilical reels, etc.
• Multi-purpose service vessels (MSVs), and barges,
• Develop a Long-term plan with all stakeholders
• Explore capability of existing facilities for some subsea structure fabrication and subsea
system integration testing (SIT)
Expanding Deepwater Capability
• Deliver the most CAPEX efficient projects – accelerated schedules, effective
solutions
• Start looking a Energy Supply and Consumption differently
• Embrace Global Warming and the importance of emissions management
• Rekindle our Pioneering Spirit
Key Takeaways
But remember…
Collaboration is key
Deep Water in the Caribbean

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Deep Water in the Caribbean

  • 1. www.advisian.com Energy Conference Trinidad and Tobago Brian McShane - Senior Vice President, Americas Deep Water in the Caribbean
  • 2. As we journey through the world we see continual changes in the energy sector ranging from how it’s consumed, to a heightened sensitivity for social and environmental impacts and significant reductions in commodity pricing.
  • 3. Change is inevitable, but today’s energy sector - particularly in hydrocarbons - is dramatically changing relative to the norms that we have become used to over recent years.
  • 5. Commodity Pricing • Reducing available capital for projects • Forced industry consolidation • Reducing available resource capacity • Experienced personnel and knowledge base are retiring
  • 6. United Nations - Paris Agreement • 125 of 197 countries have ratified the proposal of keeping global warming to <2⁰C (including many CARICOM nations – e.g. Barbados, Guyana, Trinidad and Tobago) • Forecasts estimate that fossil fuel consumption needs to reduce by 35% • A number of countries have drafted their Nationally Determine Contributions (NDCs) Global Warming Total U.S Greenhouse Gas Emissions by Economic Sector in 2014
  • 7. • Forecasts are predicting a significant increase in the use of renewable energy over the next 25 years • Power generation capacity is significant - >50 MW • Cost of energy storage is reducing Renewable Energy
  • 8. • Battery technology • Electric vehicles (e.g. cars, bikes etc.) How quickly will they change the landscape? New/Disruptive Technologies
  • 9. It wouldn’t be the first time: • 1913 - New York Avenue • Model T Ford first produced in 1908 • Now cars are the main form of transportation • This happened in less than 13 years New/Disruptive Technologies Image credit: George Grantham Bain Collection http://www.shorpy.com/node/204?size=_original Reference: https://www.youtube.com/watch?v=Kxryv2XrnqM
  • 11. • Reduced CAPEX solutions • Accelerated delivery schedules • Ensure certainty of outcomes • Compete globally Cost Efficiency
  • 12. Refresh Energy Delivery Strategies • Start to balance the energy footprint – not just fossil fuels Revisit Energy Consumption • CNG vehicles • Use Renewables to supplement energy • Electric vehicles including bikes when they are ready Energy Consumption
  • 13. • One team • Recognize that we have to change how we work together • Align stakeholders across the value chain (Upstream, midstream, downstream) to enable projects to be successful • Be proactive in helping each other • New partnering/ contracting strategies Collaboration
  • 14. • Revisit alternate solutions that provide significant CAPEX reductions e.g. Low Heave Semi Submersible • Implement effective standardization New Solutions/Approaches
  • 15. Deep Water Activity in the Caribbean
  • 16. Trinidad • Exploration wells drilled by BHP during 2016 – LeClerc (BHP/Shell) and Burrokeet (BHP/BP). Results being assessed • BP are planning exploration in the Columbus basin • Continued exploration activity Deep Water Activity in the Caribbean Guyana • Exploration continues to be successful on Liza • ExxonMobil moving forward with Liza development Sanction scheduled for 2017 • Seismic surveys: • Completed in adjacent block (ExxonMobil/Mid Atlantic/JHI) currently under assessment • More planned for other blocks in 2017 (Repsol/Tullow) Suriname • Increased activity in block ownership • Seismic program for deepwater Block 58 (Apache) and Block 42 (HESS/Chevron /Kosmos) • Drilling planned by Apache in Block 53
  • 17. • Knowledge sharing and Public Education (e.g. publications, lectures, workshops related to deepwater etc.) • Coordinate resource needs across the CARICOM nations (e.g. Supply of fuel, vessels etc.) • Expand existing port and key side facilities to meet the needs: • Receiving, offloading, and loading of line pipe, subsea structures, umbilical reels, etc. • Multi-purpose service vessels (MSVs), and barges, • Develop a Long-term plan with all stakeholders • Explore capability of existing facilities for some subsea structure fabrication and subsea system integration testing (SIT) Expanding Deepwater Capability
  • 18. • Deliver the most CAPEX efficient projects – accelerated schedules, effective solutions • Start looking a Energy Supply and Consumption differently • Embrace Global Warming and the importance of emissions management • Rekindle our Pioneering Spirit Key Takeaways