Despite uncertain times and geopolitical crisis, the oil and gas industry does not stand still. Decarbonization, renewable energy, digitalization, talent development and other topics dominated discussions during the annual SPE (Society of Petroleum Engineers) Caspian Technical Conference, which took place in Astana in mid-November.
More than 350 Caspian, regional and international oil and gas professionals and experts, including Chairman of the Board of JSC NC KazMunayGas (KMG), co-host of the SPE Caspian Technical Conference Magzum Mirzagaliev, Managing Director of the North Caspian Operating Company (NCOC) Olivier Lazare, SPE Global Director Michelle Boyd events, shared experiences, presented and discussed ideas to optimize efficiency, reduce costs, improve environmental performance and prevent future skills shortages.
Magzum Mirzagaliyev emphasized the strategic role of the event for the entire Caspian region. “This event provides an excellent opportunity to discuss various projects within the Caspian region, as well as exchange views on the latest challenges facing the oil and gas industry,” he said.
The relevance of the Caspian Conference was noted by Michelle Boyd, who said that over the past nine years it has provided an opportunity for constructive discussion, highlighting industry best practices, new technologies and developments in the field of oil and gas exploration and production.
NCOC Managing Director Olivier Lazare highlighted the oil and gas industry’s uncertainty and the need to adapt quickly. In this regard, the NCOC consortium, which is developing the Kashagan field in Kazakhstan, is considering the possibility of exporting oil by rail in the event of disruptions at the Caspian Pipeline Consortium (CPC), Olivier Lazare said.
Transformation of the oil and gas industry
With its recent deployment of renewable energy, Kazakhstan is meeting its commitment to reduce greenhouse gas emissions and remains on track to combine decarbonization and growth. In 2016, the government signed the Paris Agreement committing to reduce greenhouse gas emissions by 15-20%, which was later implemented in local legislation. In December 2020, President Kassym-Jomart Tokayev signed an agreement to achieve net-zero emissions by 2060. These commitments are very important for the country and its achievement of carbon neutrality, and expanding the use of renewable energy sources plays an important role in these efforts, emphasized Deputy General Director of Tengizchevroil LLP (TCO) Konilkosh Suesinov. We need clear actions, consistency and temporary transition plans.
Reducing costs and carbon emissions while improving asset reliability and availability has become a must for those looking to remain competitive and grow. This was one of the takeaways from the panel session “Delivering Sustainable Value through Digital Transformation.” Organizations operating in the Caspian region and around the world recognize digitalization as a key factor in achieving their goals. Advances in core technologies such as data analytics, artificial intelligence (AI) and others are opening up a wide range of opportunities to optimize, automate and simplify processes, asset tracking and data management in the oil and gas industry.
The issue of attracting and retaining talent in the oil and gas industry was also the focus of the conference. Experts noted that the younger generation prefers values of a different kind and is increasingly choosing other professions. Climate change and oil market volatility are among the reasons why young people avoid working in the oil and gas industry, despite high pay.
On the road to economic recovery
Magzum Mirzagaliev said that despite the difficult times, KMG decided to continue the IPO process, given that with the low share price that the world is seeing today, it may still be of value to potential buyers. The IPO follows the launch of KMG’s largest polypropylene plant in the Caspian region and Central Asia. Magzum Mirzagaliyev also mentioned discussions with investors about the largest renewable energy projects in Western and Central Kazakhstan. So, despite all the challenges the company has faced this year, there are many positives to look forward to.
Many participants recognized that the conference provides an excellent platform for discussing the most pressing issues in the industry. Among the various challenges of the current year, which ended two years of a global pandemic and economic turmoil, speakers mentioned the difficult regional geopolitical situation, transportation problems and instability in pipelines.
An inclusive market model of economic growth, based on the efficient and sustainable use of natural resources, can help Kazakhstan find a path to economic recovery and sustainability.
With the support of a wide range of key stakeholders from the Caspian energy industry, including the Ministry of Energy of the Republic of Kazakhstan, KAZENERGY, TCO, NCOC, Chevron, ExxonMobil, Weatherford, ENI, SLB, Shell, Degolyer and McNaughton, TotalEnergies, Halliburton and KPO, the SPE Caspian conference remains the largest annual event for oil and gas industry professionals in the Caspian region.
More information about the 9th Annual SPE Caspian Technical Conference on the official website http://go.spe.org/2022caspian.
The Society of Petroleum Engineers (SPE) is a non-profit professional association whose members are involved in the development and production of energy resources. SPE serves more than 124,800 members in 134 countries. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, events, training courses and online resources at www.spe.org.
