Message From The Chair

Upcoming Events, Oil Market and Geopolitics, Energy Transition

Dear Colleagues,

We have a lot going on ahead of summer and I hope you will be able to join us. Please check out the activities at the end of this article for details. Please join us for in-person events!

The UK government is set to extend the oil and gas windfall tax this week, reflecting the ongoing global dialogue on energy taxation and its implications for the industry. Meanwhile, Wood Mackenzie has shaved 1 million barrels per day off its global oil demand forecast, indicating shifting dynamics in oil consumption. Additionally, energy-related emissions hit a record high last year, highlighting the ongoing challenge of balancing energy needs with environmental concerns.

In Russia, low refining capacity and sanctions are responsible for the country's oil output cuts, underscoring the complex interplay between geopolitics and energy production. In the United States, Congress has tabled a bill to block China from purchasing oil from the Strategic Petroleum Reserve (SPR), reflecting the strategic importance of energy reserves in international relations.

India is looking to bolster its energy infrastructure, with expectations of a $5 billion investment in natural gas pipelines in the north. This initiative highlights the growing emphasis on natural gas as a key component of the energy mix. Additionally, Chesapeake, Delfin, and Gunvor have entered a long-term LNG offtake agreement, highlighting the growing importance of LNG in the global energy market.

On the renewable front, utility-scale solar installations saw the largest jump ever last year, demonstrating the accelerating growth of solar energy. The Bureau of Ocean Energy Management (BOEM) has finalized wind energy areas in Oregon, marking a significant step forward in the expansion of offshore wind energy. These developments underscore the increasing focus on renewable energy sources in the quest for a sustainable future.

Innovations in reservoir management and energy storage are underway, showcasing the potential for enhanced recovery methods and more efficient power management. Aker BP's project using Fishbones technology to unlock tight reservoirs and Chesapeake Energy's $17 million investment to build a geopressured battery are examples of the innovative solutions being applied in our industry.

The energy transition is gaining momentum, with hydrogen playing a crucial role. Tracking the progress of the hydrogen economy is essential for understanding its impact on the energy landscape. Additionally, emerging geothermal technologies are making waves, with Hot Rock Slurry's field tests set to explore the potential of this renewable energy source.

As we navigate these developments, I'm excited to announce several upcoming events that offer opportunities for networking and professional development:

  1. SPE LA Basin Section Energy Transition Social Networking Event - Join us on Thursday, April 11, from 4:00 to 7:00 PM for an engaging session on the energy transition. Register here.
  2. SPE LA Basin Section Golf Tournament - Mark your calendars for our annual Scholarship Golf Tournament on May 3, 2024, at the Navy "Destroyer" Course in Cypress, CA. Your participation supports our scholarship and outreach programs. Details and registration.
  3. March Technology Luncheon - Don't miss our upcoming luncheon, where we'll discuss the latest technological advancements in the industry. Reserve your spot.


Sincerely,
Andrew López
SPE LA Basin Section Chair 2020-2024
aslopez@burnsmcd.com