The 2024 EAGE (European Association of Geoscientists and Engineers) Annual Conference was a bustling event, echoing the vibrancy of pre-Covid times with over 6,200 attendees. The positive atmosphere was palpable, reflecting the industry’s resilience and optimism.
Here are some key observations and insights from the event:
Exploration Insights
Main stage speakers from leading O&G majors, including Total, Chevron, Wintershall DEA and SLB, emphasized the ongoing commitment to exploration with disciplined capital allocation. The focus remains on:
- Substantial Resource Potential: Investments are being directed towards regions with significant resource prospects.
- Favorable Commercial Terms and Stable Fiscal Environments: Companies are prioritising areas where commercial and fiscal conditions are supportive and predictable.
- Government Support: Governmental backing is crucial in facilitating exploration activities.
Other key takeaways from the session on international exploration included:
- Maintained Exploration Capital and Activity Levels: Despite market challenges, companies are sustaining their exploration efforts.
- High Grading Portfolios: There is a keen focus on refining portfolios, particularly with an eye on future emissions reductions.
- Technological Impact: Digital technologies are enhancing the identification of opportunities and improving “quality through choice.”
- Cycle Time Reduction: Efforts to shorten exploration cycles are ongoing, though permitting processes remain a challenge in some regions.
Graeme Bagley from Westwood Global Energy noted a significant reduction in exploration activity: “Now we have half the number of wells by half the number of companies in half the number of countries.” However, the recent decision by New Zealand to allow O&G drilling again may indicate a shift.
Carbon Capture and Storage (CCS)
CCS sessions were notably popular, highlighting its growing mainstream relevance. This trend reflects the industry’s increasing focus on sustainable practices and the importance of using all available geoscience data and capabilities to identify optimal storage sites and monitor them during & post injection.
Natural Hydrogen
While geologic hydrogen remains a niche compared to CCS, there is a growing interest in this topic and in particular in quantifying resource potential and utilising Reactive Transport Modelling (the creation of computer models integrating chemical reaction with transport of fluids through the Earth’s crust). Also, highly mature hydrocarbon source rocks are being recognized as another significant hydrogen generation mechanism.
Digitalisation, AI and Machine Learning
The conference showcased a range of digital solutions, with prevalent references to machine learning (though truly breakthroughs in predictive capabilities seem sparse). Many companies are heavily invested in implementing the Open Subsurface Data Universe (OSDU) framework while automated seismic interpretation remains a prominent focus.
Exhibition Hall Highlights
Seismic companies dominated the exhibition hall, with a noticeable shift towards ‘multi-physics’ approaches. However, there was a lack of mention of gravity and magnetics (G&M), suggesting that the unique exploration insights they offer may be underestimated. Getech has published a series of blogs on the application of gravity and magnetics data, including how gravity data aids in focusing offshore exploration and how magnetic data is an essential tool for critical minerals exploration.
Conclusion
The 2024 EAGE Annual Conference highlighted the industry’s resilience and adaptability as the energy transition progresses. With sustained exploration efforts, a growing emphasis on CCS, optimism around the potential of natural hydrogen and ongoing digital transformation, the sector is poised for continued evolution and innovation.
Written by Max Brouwers, Getech’s Chief Business Development Officer.
