CERAWeek:
Mexico
has vastly underexploited gas resource - Fernando Canales , Mexico's
Energy Secretary
Petroleumworld
Caracas
Petroleumworld.com 02 10 06
Ceraweek
Wednesday feature as the luncheon Keynote speaker, Fernando Canales
Clariond, Secretary of Energy of Mexico, he spoke of the “threat
and challenge” of today’s global gas market.
Canales
said that the “global gas threat” involves regional
market imbalances, interregional price differentials, and liquefied
natural gas (LNG) trade growth. The challenges are, among others,
to accelerate development of natural gas transportation infrastructure;
promote development with a long-term view; foster renewable energy
resources; dampen price volatility; and develop aggressive energy
conservation and efficiency programs. Mexico has vastly underexploited
resource potential that could meet market growth. But Mexico’s
closed legal system discourages private investment.
However,
Canales said that Mexico could see some changes to its law forbidding
investment by private companies in the energy sector before Congress
breaks in September.
"It's
possible that before August 31, we'll have some changes in the
legal framework in order to enable some additional participation,"
by private companies, Clariond added.
Also
on Wednesday morning,
US
Deputy Secretary of Energy Clay Sell, who oversees the US Department
of Energy’s (DOE) energy and science mission, elaborated
on the energy initiatives described by President George W. Bush
during the State of the Union address and the federal budget.
He said government can help shape “Energy’s Next Era”
through a commitment to and belief in the power of free and well-functioning
markets, and support for technology and innovation. Rather than
more taxes and regulation, government must help the energy industry
recalibrate its strengths for growth.
Sell
added that the Energy Policy Act of 2005 has jump-started a nuclear
renaissance; a number of companies have begun the process for
licensing the first new plants in decades. The administration’s
Global Nuclear Energy Partnership, based on the principle that
energy and security go hand-in-hand, will help developing nations
to use nuclear technologies in return for their support of nonproliferation
principles. These cooperative relationships will sustain economic
growth in a cleaner, safer world.
Other
speakers like, John D. Gass, President, Chevron Global Gas, described
gas’s transition from promise to performance. while Simon
Blakey, CERA Senior Director, set the stage for the Global Gas
Plenary by noting the world’s race for gas. “The world
is hungry for the fuel,” he said, and supply needs to catch
up.
Gwyn
Morgan, Vice-Chairman, EnCana Corporation, said the company’s
focus is on the unconventional resources of drilled oil sands,
tight gas, coalbed methane, and shales to serve the gas market
through the future.
Yves-Louis Darricarrère, Group Executive Vice President
and President, Gas & Power, Total, offered the European viewpoint,
agreeing that natural gas could be the “New Prize”
if it serves a larger portion of world energy demand, with prices
no longer indexed to oil, and markets no longer regional, but
global.
Alexander
Landia, Executive Partner and Global Gas Lead, Accenture, said
gas’s going global faces the dramatic geopolitical intricacies
with shifts in supply areas and different strategic responses
from international and national oil companies.
In
the North American Gas Plenary the theme was "Uncharted Territory",
CERA Managing Director Michael Zenker led discussion of industry
steps to meet growing demand. Hal Kvisle, President and Chief
Executive Officer of TransCanada Corporation, brought the perspective
of a major North American gas transmission company—with
growth comes demand for infrastructure.
Keith O. Rattie, Chairman, President, and CEO of Questar Corporation,
made the argument for development of unconventional fuels and
for better policy regarding our energy needs.
Robert D. Stibolt, Senior Vice President of Strategy and Portfolio
Management for SUEZ Energy North America, presented a view of
the LNG market, with investment needed to connect the “balkanized”
East and West markets and to provide more LNG facilities.
Brian
Frank, President and Chief Executive Officer of BP Canada Energy
Company, sees a need to develop all gas resources, with the current
tight supply-demand balance making gas prices vulnerable to Mother
Nature.
In
the afternoon’s Global Energy Watch, CERA experts provided
views on global market dynamics, trade strategies, balancing fuel
supply costs, conservation, Russia and the Caspian as energy supply
sources, Middle East geopolitics, Asian growth and project development,
Latin America’s commercial and geopolitical trends, and
the CERA study Dawn of a New Age—global scenarios for oil,
gas, and power to 2030.
Wednesday
night, Dinner speaker was Robert E. Rubin, Director and Chairman
of the Executive Committee, Citigroup, and former US Treasury
Secretary, he offered perspectives on the US and global economies,
with historic changes shifting the global economic center potentially
to Asia. The United States remains well positioned, but must meet
complex competitive challenges. He named four significant factors
shaping growth: the effectiveness of government, income distribution,
demographics, and environmental conditions. The problems of income
distribution and global integration of wealth require solutions.
“Growth will depend on the preponderance of people feeling
the global economic structure is in their best interest,”
he noted.
Source:
Cera / News Agencies
Petroleumworld
02/09/06
Copyright
© 2006 Petroleumworld. All rights reserved
