Heads of oil sector urge to adopt tech. progress

By Dilara Zengin and Ebru Sengul

ISTANBUL (AA) - Adaptation to technological advances and to new efficiency methodologies is key for the future of the petroleum industry, the heads of prominent oil companies said Tuesday at the World Petroleum Congress in Istanbul.

Speaking at a session entitled, Leading Through Change during the Congress, of which Anadolu Agency is the global communication partner, CEO of Total Patrick Pouyanne declared three challenges in the petroleum industry -- economic volatility, geopolitical uncertainties and climate change.

Facing economic volatility is a challenge for all of the petroleum sector players since 2014, Pouyanne said. He explained that to respond to market volatility, energy players need to adapt and find ways to become more efficient.

Pouyanne noted that today's world is characterized by many conflicts and political uncertainties, in particular in the Middle East and Mediterranean.

"I think that among this order, the oil and gas industry can be a stabilizing factor," he asserted.

The oil and gas industry can maintain decent living conditions and ensure economic development by providing energy while continuing to invest, he added.

"People are building too many walls and not enough bridges," Pouyanne stated.

He identified climate change as a long-term challenge while maintaining that the industry should focus more on providing clean energy.

"We have to be responsible collectively with this challenge. We see the fact but at the same time we should also not forget what our fundamental mission is, which is to be able to provide the world with reliable and affordable energy," he underlined.

"The industry needs to invest more today to meet the demand of decades to come," he said.

An energy mixed revolution will transpire in the coming years along with technological changes, Pouyanne remarked.

Speaking at the same session, Decio Oddone, director general of Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP), stated that the speed of change has escalated with progress and technology.

Development of shale and continuous progress in technology have proven that oil resources are not as limited as we used to think years ago," Oddone stated. "We are living at a time in which we worry about climate change, and as a result, we are initiating the transition to a low carbon economy."

The world needs oil and gas but in a different way, Oddone noted.

"Successful players will be the ones that learn to anticipate change and develop growing capacity to adapt," he affirmed.

Transition to a low carbon economy without the phantom of oil shocks represents good news for the world economy. It signifies smaller risks for the global economic growth," he said.

Oddone also noted that with transformation in the industry, natural gas will gain momentum.

“We have shale in the U.S. impacting oil prices. Financial institutions are now part of the industry. We have the transition to a low carbon economy, while reducing the future dependence on hydrocarbons. Natural gas is gaining momentum,” he explained.

Oil will be left on the ground in the future, Oddone argued, adding that for society's benefit, these reserves must be produced sooner or later.

“To achieve that, capital must be attracted. Government and regulatory policies must be adapted,” he cautioned.

Oddone explained that the Brazilian oil and gas industry is going through the largest transformation ever to adjust its strategy for the future.