Peak oil debate losing relevance due to new upstream technology: Repsol
CEO
Doha (Platts)--6Dec2011/544 am EST/1044 GMT
The debate over whether the world's reserves of hydrocarbons have now
peaked and are in decline has lost relevance over recent years as new
technology allows oil companies to find and exploit new hydrocarbon
sources, the CEO of Repsol Antonio Brufau said Tuesday.
Brufau said progress made in exploring and developing ultra-deepwater
areas, unconventional oil and gas sources and the move into remote areas
such as the Arctic, have been key to growing global reserves of oil and
gas.
"The speed at which technology changes and its consequences have taken
us largely by surprise. The peak oil debate, for example, has lost a
great deal of its relevance in the past three years," Brufau told the
World Petroleum Congress in Doha.
"The possibility that usable resources under commercially viable terms
will run out is no longer a concern in the short or medium term," he
said.
New technology has given access to "massive amounts" of new
resources, Brufau said, adding Repsol is continue to explore in
deepwater offshore Brazil, West Africa and Cuba.
Last month, Repsol said it has continued to more than replace its proven
oil and gas reserves outside Argentina this year and will accelerate
output from 2015 onwards as it converts contingent resources into proven
reserves.
Brufau pointed to developments in the US shale gas industry and
highlighted Repsol's own plans to develop a huge shale oil and gas area
in Argentina.
Repsol has said it estimates the cost of fully developing its Vaca
Muerta shale oil and gas discovery in Argentina at some $20 billion. The
discovery covers nearly 1 billion equivalent barrels of recoverable
shale oil at the Loma La Lata field.
Brufau said Repsol's shale reserves in Argentina are currently
profitable to develop at $30/barrel finding, development and operating
cost.
--Staff Reports,
newsdesk@platts.com
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