CORPORATION IAGC. Mike Bahorich Executive VP, Technology Officer

Transcription

1 CORPORATION IAGC Mike Bahorich Executive VP, Technology Officer February 18, 2010

2 2010 Bahorich IAGC 2

3 Household Debt and Income Trend 2010 Bahorich IAGC 3

4 The Squeeze is on the Debt Generation 350% US Total Debt as % of GDP 300% 250% 200% 150% 100% 50% 0% Source: The Economist based on Morgan Stanley, Federal Reserve and BEA 2010 Bahorich IAGC 4

5 How Does It Compare to Previous Finance-Related Crises? 2010 Bahorich IAGC 5

6 Oil Consumption vs. Total Income ( ) US CHINA 2010 Bahorich IAGC 6

7 Oil Consumption vs. Total Income ( ) 2010 Bahorich IAGC 7

8 Oil Consumption vs. Oil Consumption per Person 2010 Bahorich IAGC 8

9 Innovation: The New Model-T 33-horsepower 623cc twocylinder $2,092 Death trap Tata Motors launched Nano in March ,000 pre-orders India s July car sales jump 31% 2010 Bahorich IAGC 9

10 Basin Maturity Production Peak Decline Since 2007 MMboe/d U.S % 15.7 Netherlands % 1.3 Indonesia % 2.0 U.K % 2.8 Colombia % 0.7 Australia % 1.2 Oman % 1.1 Norway % 4.0 Mexico % 4.2 The world s major hydrocarbon basins are maturing Greater and sustained effort required to maintain production Data source: BP Statistical Review 2010 Bahorich IAGC 10

11 Need to Mitigate Decline Rates MMbopd World Oil Production Needs Need: A new U.S. + a new Asia Pacific + a new Africa + a new FSU Growth for China/India increases challenge by 50% A new World ex Middle East Source: U.S. Department of Energy data, Perella Weinberg analysis Bahorich IAGC 11

12 Large Fields Discovered Shale Gas fields are super giants Barnett Shale 5 TCF cum TCF EUR 8% US production Will one of these become the largest US gas field? Haynesville Marcellus 2010 Bahorich IAGC 12

13 The invention Multi-frac horizontal well 2010 Bahorich IAGC 13

14 Technology has Changed NA Gas CORPORATION Shale Completion Multi-stage frac technology has enabled the development of immense North American gas Vertical Horizontal resources, forever changing our 1 Frac 15 Fracs business. EUR.4 BCF FDC $3/MCF EUR 8 BCF FDC $1/MCF Each year the number of horizontal frac stages increases. Significant improvements every year lower development costs.

15 Big Fracs - Long Laterals - Pad Drilling Old Technology 1 well ~ 40 acres Today CORPORATION 1 Pad ~ 2 sections 1 frac contacts 7-10 acres

16 2010 Bahorich IAGC 16

17 E&P Shale Gas Acreage 2010 Bahorich IAGC 17

18 Shale Acreage Over 30MM acres leased. 1% - 2% can be drilled per year. Most leased acreage will expire undrilled. Best acreage, technology and execution necessary for success. Major implications for our traditional business. What got you there will not keep you there Bahorich IAGC 18

19 Industry Trends Cyclicality is nothing new However, strong secular trends present challenges: Demand: China, India automobile adoption Oil Supply: Basin maturity NA Gas: Huge resources, BTU parity? Regulation: CO2 reduction When cycle returns: Then: North Sea, deepwater provided cushion from FSU supply drop Next: Will Iraq, Saudi spare capacity, and natural gas provide cushion? 2010 Bahorich IAGC 19

20 Apache: #2 Market Cap, #1 International, Ind. North Sea Canada Central Gulf Egypt Argentina Australia Mboe/d 607 Mboe/d (50% oil, 50% gas) Internationally diversified A-rated, ~$4bn firepower Exploration and Acquisitions Contrarian, Sense of Urgency Egypt 156 #1 producer in Western Desert Gulf 123 #1 independent in GOM shelf Central 88 #3 producer in Oklahoma; Large Permian player Canada 79 #1 (joint) in Horn River basin North Sea 68 Forties: Largest oilfield in UK North Sea Argentina 48 Built last 3 years Australia 45 #2 in W. Australia gas; largest growth contributor 2010 Bahorich IAGC 20

21 Technology Survey: Leading vs. Lagging Geophysics Petrophysics Geology Production Engineering/Completions Reservoir Engineering LAG LEAD Drilling Information Technology Geochemistry EOR/IOR Methods APA BLUE WHITE TEMPLATE.pptx 0% 10% 20% 30% 40% 50% 60% 10/14/ Bahorich IAGC 21

22 Geophysical Focus at Apache Shale and tight sands: Sweet spot detection. Improved microseismic accuracy. Integrated seismic, well and microseismic data. Currently performing the world s largest microseismic experiment Bahorich IAGC 22

23 Geophysical Focus at Apache Seismic acquisition: Cheap Very large Wide azimuth Long offset High density Slip sweep Simultaneous sources Single sources Larger Vibroseis Lighter recording systems Wireless recording Low cost marine 4D Have set world records for shots per hour Bahorich IAGC 23

24 Geophysical Focus at Apache Seismic processing: Regularization Depth conversion Offset vector tiles 4D Cheap depth imaging Prestack inversion Demultiple Shale seismic 2010 Bahorich IAGC 24

25 Cross Border Seismic: Chile to Argentina SVN BGu Castillo La Sara North 2010 Bahorich IAGC 25

26 Cross Border Seismic: Chile to Argentina SVN BGu Castillo La Sara North Seamless 3-D seismic across border utilizing wireless passive recorder 2010 Bahorich IAGC 26

27 Long Offset, Wide Azimuth, Slip Sweep, OVT, HD, Lower Cost 1999 Khalda Ridge Seismic New Seismic (Apache) ALAMEI N DOL MASAJID LST RAS QATTAR A Thinning of Ras Qattara 2010 Bahorich IAGC 27

28 CORPORATION IAGC Mike Bahorich Executive VP, Technology Officer February 18, 2010