Latin America Conference Explores Integration, Technology Issues
Authors: Donnelly John 
Published: February 2015

Significant advancements in exploration and production, technology transfer, and regional integration issues highlighted sessions at the ninth edition of SPE's Latin American and Caribbean Petroleum Engineering Conference (LACPEC) in Rio de Janeiro. More than 1,100 attendees representing 19 countries participated in the 3-day event, which included 24 technical sessions, 5 gener­al panel sessions, and 150 exhibits.

The Brazilian Section of SPE and the IBP-Brazilian Oil and Gas Inst. helped organize the event, which is held every 2 years in a major Latin American oil and gas area. Brazil was a fitting back­drop for this year's conference-Petrobras continues to be an industry leader in the creation and use of upstream technology, and the country is facing many of the issues major Latin American oil producers are grappling with, including the state's relationship with private investment and social responsibility pressures.

The opening panel session took the issue of responsibility head on. After welcoming remarks from Anelise Lara, General Chairperson of the conference, and Ricardo Luiz Beltrao, SPE Brazil Section Chairperson, and other officials, panelists dived into the topic of the petroleum industry's role in the economic and social development of Latin America and the Caribbean.

A Successful Model

Jorge Camargo, General Managing Director for Statoil Brazil, called on the industry and countries in the region to take a close look at the model that Norway adopted when oil took center stage in that country. That model emphasizes the development of natural resources for the good of the whole country and promotes the growth of local industry, high environmental and ethical standards, and transparency. The Norwegian government worked closely with Statoil and other oil companies to devise the plan and ensure its success, he said. Statoil-which operates in 29 countries including major Latin American producers Brazil, Mexico, and Venezuela-follows that model when working abroad, Camargo said. The company is proactive in hiring local people for its projects, supports local enterprises that contribute to local employment growth, and engages in sustainable development projects in the region.

The "future of oil" in Latin America will depend largely on the models each country uses in addition to the quality of its projects, he said. "The potential of Latin America is huge," Camargo added. Especially attractive are Brazil's basins and the offshore areas of Colombia and Venezuela, he said, and Bolivia and Peru also have intriguing potential.

A shift has occurred on the global petroleum landscape, he said. All oil and gas firms are now under pressure to be more socially responsible regarding the environment and the well-being of local communities, in addition to being financially successful companies. And national oil companies, which have become more adept at using technology, are increasingly looking for reserves outside of their host countries. The major challenges facing Statoil are those facing other major oil and gas companies as well-both state-owned and private concerns. Statoil's goals are to maintain domestic pro­duction while growing internationally, which includes stepped-up global exploration, working with preferred national oil company partners, and developing the natural gas value chain, he said.