energy security in the western hemisphere: venezuela as the cornerstone
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Energy Security in the Western Hemisphere: Venezuela as the Cornerstone. Ali Moshiri President ChevronTexaco Latin America Washington, June 22 2004. The world is growing faster than we think. The world will grow 50% by 2050. Population growth requires energy growth. - PowerPoint PPT PresentationTRANSCRIPT
© ChevronTexaco 2004 Confidential
Energy Security in the Western Hemisphere:
Venezuela as the Cornerstone
Ali Moshiri
President ChevronTexaco Latin America
Washington, June 22 2004
2Confidential
The world is growing faster than we think
The world will grow 50% by 2050
3Confidential
Population growth requires energy growth
Oil and Gas are growing at 1.9 and 2.2% respectively
Total World Energy Demand
0
20
40
60
80
100
120
1980 1985 1990 1995 2000 2005 2010 2015 2020
Oil
Natural Gas
Coal
Renewable, Hydro, Etc
Nuclear
Million Barrels of Oil Equivalent per Day
4Confidential
Naturally, the global energy supply/demand is in balance
0
500
1000
1500
2000
Discovered Undiscovered Resrves Growth Total
Worldwide Oil Consumption: Approximate 75,000 MMBOD
It will probably still be in balance without any radical changes for the next 30 years, but what happens regionally?
US Geological survey has 2 Trillion barrels of conventional oil using only 30-40% of Oil in place
Oil Resources (Bbbl)
5Confidential
In the Oil Sector
0
1
2
3
4
5
6
0 1 2 3 4 5 6
0
1
2
3
4
5
6
0 1 2 3 4 5 6
0
1
2
3
4
5
6
0 1 2 3 4 5 6
Production: 20800
Consumpt: 28000
Balance: -7,200
Production: 8000
Consumpt: 2500
Balance: +5,500
Production: 21000
Consumpt: 4300
Balance: +16,700
Production: 8000
Consumpt: 21500
Balance: -13,500
Production: 16200
Consumpt: 19400
Balance: -3,200
Middle East reserve base is two times larger than the rest of the world. ME will gain even more strength - Remember the 70’s?
Americas
Europe & Eurasia
Africa Middle East Asia-Pacific
Reserves
Production
6Confidential
Lets take a closer look at our HemisphereFirst at Latin America
000 BOD000 BOD Production
Consumption
Balance
Mexico 3600 1800 1800
Venezuela
3000 500 2500
Brazil 1500 1850 -350
Argentina 800 350 450
Colombia 600 200 400
Ecuador 400 150 250
T&T 150 NA NA
Peru 100 150 -50
Total LA 10,200 6,400 3,800The net consumption of other Latin American Countries= 1200mbod
Venezuela largest oil contributor to the region
7Confidential
Now lets add US & Canada Production and Consumption
000 BOD000 BOD Production
Consumption Balance
USA & Can
10,600 21,600 - 11,000
Total LA 10,200 6,400 3,800
Americas -7,200Venezuela holds 52% of the Oil in the region
0 10 20 30 40 50 60 70 80
BBbls
Peru
T&T
Colombia
Other
Argentina
Ecuador
Canada
Brazil
Mexico
USA
Venezuela
8Confidential
Can Venezuela Improve the future Western Hemisphere supply/demand balance?
Venezuela seems to be the cornerstone for any oil supply dependency improvements in the region given a 75 year R/P ratio
0
5000
10000
15000
20000
25000
30000
35000
40000
2002 2020
New Venezuela Heavy OilVenezuelaProduction (Ex- Venezuela)Americas Demand
How much more ?Venezuela 75
Ecuador 30Brazil 15T&T 15USA 10Argentina 10Other naMexico 10Peru 10Colombia 10Canada 10
R/P Ratio (years)
9Confidential
Now, In the Gas Sector
253
250 1979
1931963
418445
NA S. Central America ME Europe Eurasia Africa AsiaPacific
R/P: 9YRS
R/P: 68YRS
R/P: 9OYRS
R/P: 20YRS
R/P: 80YRS
R/P: 42YRS
R/P: 240YRS
Latin America is in prime location to supply a gas hungry U.S market
10Confidential
Mexico
Venezuela
Trinidad
Brazil
Argentina
Bolivia
Peru
Colombia
Mexico
Venezuela
Trinidad
Brazil
Argentina
Bolivia
Peru
Colombia
There are 362 TCF of natural gas searching monetization
POTENTIAL NET EXPORTERS
ATLANTIC BASIN:VenezuelaTrinidad
ColombiaBrazil - ?
PACIFIC BASIN:Peru
Bolivia
Reserves (Tcf) 1P 2PVenezuela 148 176Bolivia 24 52Argentina 27 38Mexico 9 32Trinidad 23 28Brazil 8 12+Peru 9 11Colombia 4 5TOTAL 252 362
PeruBolivia
Colombia
TrinidadBrazil
Venezuela
MexicoArgentina
0
40
80
120
160
200
R/P Ratio (2P)
R/P average of 100 Yr (2P basis)
Venezuela is in first place with 176 TCF of gas and with a large potential for new reserves offshore
11Confidential
U.S needs in average 20 LNG trains of 4.7 mtpa to fulfill its local supply/demand gap
65
70
75
80
85
90
95
100
2000 2005 2010 2015 2020
Supply/Demand Gap
2010 2020High Case 9 BCFD 25 BCFD
Low Case 3 BCFD 8 BCFD
SUPPLY RANGE DEMAND RANGE
Latin America could easily provide 50% of those trains – Venezuela by itself can provide 20% of the average gap
12Confidential
Conclusions
Western Hemisphere oil and gas supply/demand is highly unbalanced
Latin America surplus of Oil and Gas resources could potentially contribute to the security of oil and gas supply
Venezuela plays the critical role. Its large oil and gas resource base will help maintain a healthier and diversified portfolio of supply:
It Needs support of a Western Hemisphere energy policy that is efficient and effective
And business thinking should drive decision making.
The execution of a strategy to promote and develop important energy projects will require “Strategic Partnership”, “Timely Development” and “Efficient Capital Investment and Operational Cost”
ChevronTexaco is committed to the region with an emphasis in Venezuela
13Confidential
Here are two examples of our commitment
a
Caracas
Puerto La CruzUpgrader @
J ose Industrial Site
20”Diluent
Returen Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching
Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
aa
Caracas
Puerto
La CruzUpgrader @J ose Industrial Site
20”Diluent
Return Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
aa
Caracas
Puerto La CruzUpgrader @
J ose Industrial Site
20”Diluent
Returen Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching
Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
Caracas
Puerto La CruzUpgrader @
J ose Industrial Site
20”Diluent
Returen Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching
Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
aaaa
Caracas
Puerto
La CruzUpgrader @J ose Industrial Site
20”Diluent
Return Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
Caracas
Puerto
La CruzUpgrader @J ose Industrial Site
20”Diluent
Return Line
42”Pipeline
30”Pipeline
Drilling Central ProcessingFacilities
Reservoirs
Batching Facilities
16”Pipeline
Caracas
Hamaca
Orinoco River
Puerto La Cruz
HAMACA PROJECTHAMACA PROJECT
ChevronTexaco 30%ConocoPhillips 40%
PDVSA 30%
Operating Agent:
Petrolera Ameriven
Two Integrated projects in oil and gas in Venezuela with investment levels of $5 and $2.5 billion
10 30' N
V e n e z u e l a
Ped ernale s
San Ferna ndo
C hagu aram a s
PO R T O F S PA IN
Golfo de Paria
Península de Paria
10 00' N
59 30' W60 30' W 60 00'' W61 00' W61 30' W62 00' W
D elta de l O rinoco
Bloque 6(d)
B loqu e 2
Bloque 4
10 00' N
P lata form a D eltana
B loque 3
09 30' N
Loran-1x
C o noco P hillips 3 2.5 %A gip 2 6%O pic 6 .5%P D V S A 35 %
B lo qu e O e ste d e l G o lfo d e P aria
Esm era lda-1
C orocoro-1 ,2 ,3 ,4 ,5
10 00' N
C a m p o C o roc o roC o n o co P hil lip s TD 13 ,7 60'
POSA
B lo qu e E ste de l G o lfo d eP a ria
C on o co P hillipsEN IO PICIne pa ria
G PA-01X“Punta Sur“
D elfin -1 x
Mercado en EEUU
Regas – Henry Hub
2010
Gasoducto
ALNG
10 30' N
V e n e z u e l a
Ped ernale s
San Ferna ndo
C hagu aram a s
PO R T O F S PA IN
Golfo de Paria
Península de Paria
10 00' N
59 30' W60 30' W 60 00'' W61 00' W61 30' W62 00' W
D elta de l O rinoco
Bloque 6(d)
B loqu e 2
Bloque 4
10 00' N
P lata form a D eltana
B loque 3
09 30' N
Loran-1x
C o noco P hillips 3 2.5 %A gip 2 6%O pic 6 .5%P D V S A 35 %
B lo qu e O e ste d e l G o lfo d e P aria
Esm era lda-1
C orocoro-1 ,2 ,3 ,4 ,5
10 00' N
C a m p o C o roc o roC o n o co P hil lip s TD 13 ,7 60'
POSA
B lo qu e E ste de l G o lfo d eP a ria
C on o co P hillipsEN IO PICIne pa ria
G PA-01X“Punta Sur“
D elfin -1 x
Mercado en EEUU
Regas – Henry Hub
2010
Gasoducto
ALNG
PLATAFORMA DELTANA
© ChevronTexaco 2004 Confidential
Additional Information
15Confidential
In GasWe will double our production by 2010 and still in search of new opportunities
Brazil
Argentina
Colombia
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Brazil
Argentina
Colombia
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Brazil
Argentina
Colombia
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Brazil
Argentina
Colombia
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Venezuela
Argentina
Colombia
Trinidad
Headquarters
Gas Production
Gas Exploration
Venezuela contributes with 50% of that growth