E&P Tech Asia 2008

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Upon entering the 21st century, the High oil prices are having more and more profound impact on world oil and gas exploration and production industry. The rising oil prices make oil companies remain rapid growth in profits, effectively boosting the investment in world's E&P industry. From 1999 to 2006, the investment in global E&P increased from ＄67.5 billion to ＄270.8 billion. In 2007, the total investment of this industry rose to ＄299.4 billion, gaining an increase of nearly 11% than the previous year. It is expected that for quite a long time the increae of investment in this industry will remain more than 10% every year.

On the other hand, with the rise of oil prices, the costs of E&P industry are also soaring. Since 2007, the global E&P costs have increased nearly 10%. The rising oil prices lead to active E&P activities, high demand of raw materials and engineering and technical services. And nearly 90% of the global oilfields have entered their mature stage in succession. In order to maintain the stable output of these old oilfields, more funds are needed to make the marginal cost of oil and gas E&P begin to go up. In addition, the E&P activities are focusing on deep seas, remote areas, deep oil region, complex structures and unconventional resources, which also accelerates the growth of E&P costs.

E&P Tech Asia 2009 forges a face-to-face international conversation platform unceasingly for industry elitists. This conference offers critical insights into integrating E&P upstream resources, the development of E&P technology, technical solutions to informationized E&P management and E&P Risk Management, etc. It acts as an excellent platform for global communication and networking.

The average proved rate of China's oil resources is 38.9%, while the offshore rate is 12.3%, both in a very low level compared with that of the world which is 73%. And in natural gas sector, the rates are 23%, 10 .9% and 60.5% respectively. Obviously, the proved rate of China’s oil and gas resources is very low, especially in offshore blocks. The whole industry is in an early stage of exploration. After 2005, a lot of oil contracts were signed by international oil companies and Chinese oil companies, which will make these companies get into a harvest time in risk exploration and commercial discovery in the following years.

Onshore:

In 2006, 9 risk exploration blocks in Tarim Basin were ratified for international cooperation, most of which were opened for the first time. The Tarim Basin is in great exploration potential because the exploration level in this area is still very low, which is only about 1 well/1000km2. With the construction of West-East natural gas transmission project, the E&P development of this region will enter a new development stage.

Offshore:

In 2007, on behalf of the Chinese government, CNOOC announced China’s largest opening up of offshore oil and gas blocks in recent years. Altogether there were 22 blocks, with a total area of 114,050 square kilometers, including 3 blocks in the South Yellow Sea, 4 in the East China Sea and 15 in the South China Sea. Recently, the South China Sea has become a hot area of exploration. And international oil companies are expected to reach the third harvest period in China, especially in the hot areas in South China Sea

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