NAPE Summit is live at the George R. Brown Convention Center, bringing unrivaled opportunities to learn, connect and make deals happen across the energy sector. On Wednesday, NAPE dealmakers, decision-makers and information seekers learned from industry-thought leaders at the Global Business Conference and networked with friends old and new at the Icebreaker Reception.
Finalists in the NAPE/TCU Energy Innovation Case Competition also competed for $40,000 in prize money, and the NAPE Job Fair was open for business.
“We are so excited to welcome old friends and new back to NAPE Summit — the place where deals happen,” said Bryan E. Hennigan, CPL, chair of the NAPE Operators Committee. “This year’s expo offers a wealth of opportunities for networking, learning from industry experts, dealmaking on the tradeshow floor and now even virtual dealmaking before and after this week’s in-person show.”
The 2022 NAPE Summit premier sponsors are Cudd Energy Services, Energy Domain, EnergyNet, Enertia Software, Enverus, Mewborne Oil Co., Steptoe & Johnson PLLC and Talos Energy.
NAPE Global Business Conference
Sponsored by Chesapeake Energy, Brigham Minerals, ConocoPhillips and Talos Energy, the GBC brought respected energy leaders on stage Wednesday to discuss some of the industry’s most pressing topics — giving attendees extra networking time along with exclusive insights from the experts the day before the expo floor opens.
In the first session, “The Future of the Power Grid,” Max Minzner, general counsel at Arcadia, offered a macro perspective of how the U.S. electricity markets work, exploring the drivers causing grid changes and how recent developments affect primary source energy industries that supply our generation fleet.
How power gets made has transformed over the last decade and a half, driven by the rise of renewables, collapse of coal and success of natural gas, he said. U.S. power consumption, however, has remained flat since 2005 and actually declined during the pandemic.
While a renewables policy push paused under the Trump administration, it started moving again under Biden. “But the levers of policy move very, very slowly,” he said.
Even so, states are still pushing very hard, with some reaching for 100% renewable grid targets.
“That’s as aggressive as you can get,” he said.
Among the questions to be answered going forward: Do we want renewables or carbon-free power generation?
In “Positioning the E&P Industry for Energy Transition Participation,” Robin Fielder, EVP of low carbon strategy and chief sustainability officer at Talos Energy, offered tips on how conventional upstream producers can leverage engineering, geology expertise and operational capabilities to lead the development of carbon capture and storage project opportunities.
The U.S. Gulf Coast provides a significant CCS market opportunity as America’s industrial epicenter and a world-class storage region, she said. Many E&Ps already have a lot of complementary skills, such as expertise in conventional reservoirs, seismic data, operations and project management along with their health, safety and environment track records.
Fielder shared about Talos’ new strategic partnerships and technical alliances as it ventures into a new space as well as the differences between its point source project for Freeport LNG CCS and its regional hub project involving offshore acreage in Jefferson County, Texas.
She advised attendees looking to capitalize on new opportunities to consider their skills sets, competitive advantages, potential partners and what’s in their own backyards.
“Keep looking, keep scraping,” she said. “We’ve seen how rapidly things have evolved in our industry and I think it will continue.”
GBC KEYNOTE
During the GBC Luncheon, Chesapeake Executive Chairman and Three Rivers Operating founder and CEO Mike Wichterich and DrivePath Advisors Managing Partner Gordon Pennoyer discussed the current landscape of E&P companies and predicted future top performers in their lively, interactive keynote presentation “Picking Winners in 2022 and Beyond.”
Pioneer Natural Resources as the University of Alabama. ConocoPhillips as Georgia. Devon as Texas A&M. EOG as UT. Comparing public companies to college football teams, Wichterich and Pennoyer shared pros and cons — some serious and some hilarious — and invited audience members to vote via text which stocks will be the biggest winners.
AFTERNOON GBC
Exploring the future of ESG, Jim Wicklund, managing director at Stephens Inc., moderated “Past the Talk and Into the Implementation,” which included panelists Barbara Baumann, president of Cross Creek Energy Corp.; David de Roode, EVP and Lockton Partner at Lockton Companies; and Jason Issac, director of Life:Powered. The panel discussed the challenges of implementing policies to ensure ESG goals become reality.
ESG presents an opportunity for oil and gas to reinvent itself, which the industry has successfully done over and over again, and an emphasis on ESG can lead to tangible operating results, Baumann said.
You can’t manage what you can’t measure, added de Roode. A lot of companies are collecting data but not using it. The challenge is looking at the data that has been collected and questioning if it’s impactful. Historically ESG data has been measured on averages, but that’s changing fast, and real-time data is more readily available.
It’s also important to focus on the “S” of ESG — social — through education. After recent freezes, there is more public interest in sustainability and keeping the heat on in the cold. It’s a good time to improve education efforts, starting with employees who can share with their friends and acquaintances.
The need for uniform standards of ESG measurement also provides an opportunity for the industry to come together to take the lead.
In “Oil & Gas Outlook,” Marshall Adkins, managing director and head of energy investment banking at Raymond James, detailed the supply/demand fundamentals that are likely to lead to sustainably higher oil prices over the next five years. In addition to looking at near-term oil price drivers such as COVID-related demand recovery, the capital starvation impact on the U.S. oil supply outlook, and OPEC capacity and willingness to produce at different price points, he also covered longer term issues such as oil demand displacement from electric vehicles, the consequences of electric grid transformation to wind and solar, and the challenges with increasing oil supply over the next decade.
Adkins made the case that now is the time to lean in: The fundamental story is still much more bullish than oil future prices suggest.
The combination of overwhelmingly negative sentiment, massive underperformance and bullish oil fundamentals sets up oil prices and the industry for outstanding returns over the next decade.
In the final GBC panel, “Global Oil and Gas Demand and the State of the Economy,” industry leaders discussed drivers of the global demand for oil and gas and commodity prices, the impact of the pandemic and economic expectations for the remainder of the year. Sarah McLean, a partner at Shearman & Sterling LLP, moderated the discussion, which included panelists Allen Gilmer, founder and former CEO/chairman of Enverus; Bill Marko, managing director at Jefferies LLC; and Dan Pickering, CIO at Pickering Energy Partners.
CASE COMPETITION
In January, 18 teams of MBA students representing 12 universities competed virtually in the second NAPE/TCU Energy Innovation Case Competition. On Wednesday, the four finalist teams representing Rice University, TCU, the University of North Carolina and the University of Texas at Austin competed in person at NAPE Summit, tackling energy transition.
“The U.S. energy landscape is changing profoundly. Energy transition pressures from regulators and consumers are colliding with new capital allocation frameworks,” said Ann Bluntzer, acting director of the TCU Energy Institute.
After receiving their question — “How can U.S. E&Ps leverage their energy transition strategy to reduce global energy poverty?” — the four teams had five hours to prepare before presenting their solutions before a panel of judges comprised of energy industry leaders. The winners will be announced Wednesday evening. All four teams will present on the tradeshow floor in the Renewable Energy Pavilion on Thursday.
“The competitors were well versed with the energy transition and the pressures it has put on capital markets,” Bluntzer said. “Their presentations clearly showed they are our next generation of energy leaders.”
JOB FAIR
The Wednesday afternoon Job Fair helped job seekers engage with companies looking to hire as the industry rebounds. The 17 exhibiting companies included upstream oil and gas companies, renewable energy producers, colleges and other leaders in the energy industry.
ICEBREAKER RECEPTION
Wednesday concluded with opportunities for attendees and exhibitors to mix and mingle at NAPE’s renowned networking event. Sponsored by TexasFile, the Icebreaker provided an ideal venue to reconnect with old friends, make new connections and get a head start on making deals happen before the expo floor opens Thursday morning.
NEW! NAPE MONTH
In addition to prospect generators in person on the expo floor and prospect presentations in the NAPE Theater, this year’s NAPE Summit marks the debut of an all-new digital platform:
NAPE Month — powered by Energy Domain. NAPE Month is taking energy deals to the next level with an extended run of electronic transactions.
NAPE Summit exhibitors can list prospects for zero commission and zero associated costs until Feb. 18. Buyers can easily scroll through deals and access documents and granular information related to revenue, expenses, tracts, leases and production to make informed buying decisions.
Both parties also benefit from the quickness and efficiency of the automated closing process.
NAPE returns on Thursday with another lineup:
9 a.m. – 5:30 p.m. Exhibits open
9:30 – 10:30 a.m. NAPE/TCU Energy Innovation Case Competition final presentations
9:30 a.m. – 4 p.m. Domestic & International Prospect Previews
11 a.m. – 1 p.m. NAPE Charities Luncheon with Secretary Mike Pompeo
12:15 p.m. Expo Lunch Buffet keynote speaker Oklahoma Gov. Kevin Stitt
2 – 5 p.m. Renewable Energy Pavilion Sessions/Prospect Previews
3:30 – 4:30 p.m. Connections & Conversations: Women In Energy
4:30 – 5:30 p.m. Cocktail Reception
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Sponsors, Music and Other Show Notes
Studio Sponsor: The Industrial Forest
The Industrial Forest is a network of environmentally minded and socially conscious businesses that are using industrial innovations to build a network of sustainable forests across the United States.
Weekly Sponsor: Korwell Energy
Korwell Energy is an industry leading designer, ASME code manufacturer, and remanufacturer of production equipment for oil and gas producers, throughout the Rocky Mountain Region.
They retain both an ASME U and R stamp. Their 28,000 sq ft of manufacturing shop with overhead cranes create a safe and productive environment for their team who collectively have over 75+ years of experience in manufacturing of ASME Oil and Gas production equipment.
Korwell prides themselves on outstanding customer service, expertise, and cutting-edge technology to partner with customers to maximize their individual production goals and help comply with ever changing regulations.
Weekly Sponsor: Great American Mining Co
Great American Mining monetizes wasted, stranded and undervalued gas throughout the oil and gas industry by using it as a power generation source for bitcoin mining. We bring the market and our expertise to the molecule. Our solutions make producers more efficient and profitable while helping to reduce flaring and venting throughout the oil and gas value chain.
Phone Line Sponsor: Swan Energy, Inc. 866.539.0860
Studio Email and Inbox Sponsor: To Be Announced
Featured Music: Alma Cook
For guest, band or show topic requests, email studio@thecrudelife.com
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