Do we still need exploration? With recent periods of weak energy prices and such large production increases from the Permian Basin, many question the need. I believe that several macro trends are developing to build the case for another bullish period for energy prices and the need for additional supply provided by our exploration efforts. Several recent studies have shown the precipitous drop in exploration capital spending in the past several years is resulting in the lowest reserve adds in decades. At the same time, OPEC does not have spare capacity. Iran, facing U.S. sanctions on its oil exports, cut production by 376,000 bpd in September versus May, and has said OPEC and Saudi Arabia are not able to make up for a total loss of its exports. “There is no spare capacity,” Iran’s OPEC governor, Hossein Kazempour Ardebili, said last month. Among other OPEC members, production fell by 189,000 bpd in Venezuela and by 17,000 bpd in Angola. At the same time Europe, including Germany, is now seeking greatly expanded LNG import projects to reduce dependence on Russia. No one can predict the exact tipping point from over supply to under, but clearly we are getting close to that point and your new exploration projects will be in demand. So take heart!Read More
October is a busy month for the Society! Thanks to many of you for your participation at the GCAGS Convention in Shreveport at the beginning of the month. Special recognition and thanks go to our ETGS speakers at the Convention, Dale Short and Nick Pollard, as well as Climate Change Session Chairman, Rick Turner. ETGS’s strong showing of sponsorship, session judges and participants did not go unnoticed by our colleagues in Shreveport and it was very much appreciated!
Nick Pollard reports that we had a great turnout for the ETGS Golf Tournament Monday (October 8) with 120 participants. We had 63 sponsors for the event, which was a record! This event is a great contributor for ETGS scholarships. Thanks to Nick, all the participants and of course our great sponsors!Read More
I hope everyone has had a great summer with some breaks for fun with friends and family! I am jumping in as your new Society President and I will do my utmost to continue the high standards set by our previous presidents. I would particularly like to thank the outstanding work of our Past President Anita Paulssen. Please take the opportunity to thank her for her tireless service to the Society.
This first letter will be largely organizational, and I am pleased to report that we are getting the fall started with a number of great events and meetings.