A few items from others also reporting online from CERA:
“In the opening address today at Houston’s biggest annual oil conference, BP Chief Executive Tony Hayward called on the global energy industry to look past the recent plunge in energy prices and “invest through this downturn, knowing that in the long term the fundamentals for energy demand have not changed.”
Chevron Corp., BP Plc and other oil producers are locked into drilling offshore wells that cost as much as $200 million each because of rig contracts that were signed when crude was soaring above $140 a barrel.
Even as energy companies slash billions of dollars in spending to cope with the lowest prices in five years, deep-sea exploration continues unabated because canceling rig contracts would cost as much as finishing the projects, said Candida Scott, a senior director at Cambridge Energy Research Associates who tracks oil-development costs.
Demand for rigs that can fetch more than $600
From Oil & Gas Journal:
The long-term trend is this: The world economy will recover. The future is not cancelled,” Hayward said. “We have the natural, human, and financial resources to meet the world’s growing need for energy.”
He said the world as produced about 1 trillion bbl of oil and has 1 trillion bbl of proved reserves. An additional 1 trillion bbl is known to exist but is not yet commercially viable.
BP plans to invest an average of $6 billion/year during the next decade in the US, he said.
“Over the last 5 years, BP has invested over $30 billion in the United States to find and develop new sources of oil and gas, extend production from existing fields, improve the reliability of our US refineries, expand our wind and solar businesses, create better biofuels, and develop new, low-carbon technologies.”
The Dallas Morning News:
The Texas economy is officially in a recession.
So says Federal Reserve Bank of Dallas President Richard Fisher.
“Relatively speaking, we are better off than the rest of the country,” he told a group of journalists after a speech to the Cambridge Energy Research Associates conference in Houston, but: “We’re in a recession.”
The Calgary Herald:
A burgeoning new u.s. clean-energy sector has the potential to create four million new jobs, said representative ed markey, the chairman of the u. s. house’s energy and environment subcommittee.
“We have to decide it’s an area where we want to be the leader,” markey said monday in a speech at the cambridge energy research associates conference in houston. “That’s where energy and climate-change legislation will come into play during the next couple of years.”
And more from the Dallas Morning-News:
To cut dependence on oil and pollution, the first thing to do isn’t to invest in fancy biofuels or subsidize nifty electric cars, according to oil industry officials.
Tony Hayward, chief executive of BP PLC, said Tuesday the first step is to improve the efficiency of the plain, old gasoline car. After that, people should invest in biofuels, and only then should people focus on developing electric vehicles.
“I have to say, I think — and I probably won’t be popular here — I’m quite aligned, I think, with the auto industry, that there’s a right sequence to do this,” Hayward said following a presentation at the Cambridge Energy Research Associates conference.
Americans are calling for fuel alternatives to oil, and the natural gas, biofuel and power industries have offered their own products to do the job. Now, oil officials say their product can do better.
The “electric vehicle, maybe it comes,” said Royal Dutch Shell chief executive Jeroen Van der Veer at the conference. But, “at the end of the day those [gasoline] cars may be lower in incremental costs than your renewable something.”