PETROTECH-2016 Summation Report by Chairman, Steering Committee

This edition of PETROTECH has been the largest ever in terms of participation of 7113 delegates including 20 Minister level representatives, Heads of International Oil Organizations, CEOs and industry experts. The PETROTECH-2016 Exhibition had 691 exhibitors from 36 countries showcasing the latest technology offerings from leading Indian and foreign companies. This includes 15 exclusive country pavilions.

The deliberations were conducted in 3 Ministerial Sessions, 3 Plenary Sessions, 5 Theme Sessions and 39 Technical Sessions. During the three days of Conference, in Technical Sessions, 54 lectures were held in which 287 papers were presented by experts from 21 Countries.

Excellencies from Afghanistan, Bangladesh, Bhutan, Brazil, Cyprus, Chad, Colombia, Cameroon, Qatar, Iraq, Mauritius, Nepal, Nigeria, Sri Lanka, Sudan, South Sudan, Uganda along with the Secretary General of OPEC, Secretary General of International Energy Forum and President of the International Gas Union and many internationally renowned consultants and knowledge partners have enriched the delegates with the long term outlook of the international oil and gas scenario.

The summary can be divided into three parts –
a) The policy road map elucidated by Hon’ble Prime Minister Shri Narendra Modi and MOS (IC)
– PNG, Shri Dharmendra Pradhan
b) The oversees delegates outlook and their country specific requirements
c) On the industry specific environment.
Hon’ble Prime Minster set the tone for the conference by sharing his vision with the delegates that is every Indian to have access to electricity and energy. His vision of energy stands on four pillars of Energy – Energy Access, Energy Efficiency, Energy sustainability and Energy Security.

He emphatically underlined that Government’s policies are focused on improving India’s long term economic and social prospects, rather than on short term headlines. His message to global hydrocarbon companies to come and Make in India led to a useful round of deliberations during the three day conference.

The speakers at the conference agreed that the oil and gas industry has been undergoing a period of considerable change. An important change that we discussed from Indian perspective is the improved Foreign Direct Investment in India that has made India less vulnerable to banking distress among the major economies. We had a useful debate on the causes of this enhanced stability but the rising share of imports was clearly an important factor.

Conference deliberations also noted that we must strike a balance of interest between producers and consumers. During the Ministerial session on the first day, Shri Pradhan submitted the view point of India and said that while deciding the pricing aspect of crude oil, it should be factored in that the security of supply must, in turn, be matched by security of demand.

The conference deliberations also brought forth policy and technology changes which are in the pipeline to achieve the target set by Hon’ble Prime Minister about decreasing our oil import dependence by 10% by 2022.

The second part of the proceedings concerned a number of very interesting country studies presented during Ministerial sessions. The first of the points that came out strongly focused on the bilateral initiatives between India and other Asian and African neighbors. The Hon’ble Ministers and their representatives took turns to shed light on the oil and gas industry scenario in their respective nations, the policies that favour an investment in their countries, and how India can play an integral role in the proliferation of successful energy partnerships. The presentations laid great emphasis on the need to adopt latest technologies and optimize costs.

The plenary session on Day One captured the crude oil price debacle in terms of risks, uncertainties, potential opportunities and damages. Some very interesting possibilities and analysis were discussed by dignitaries and experts from OPEC , JBC Energy, International Energy Agency , Cairns and Shell to name a few.

While there were opposite views on investment in oil and gas sector, in Indian context it was also brought out that as the current scenario is providing energy access to consumers at the bottom of the pyramid, the upstream investments are important to sustain the growing energy requirements.

The third part of conference proceedings concerned developments in the alternate energy framework and its implications for world oil and gas policy. India is committed to cut down carbon emissions and lays emphasis on renewable sources of energy. Principal companies of oil & gas in India are investing largely towards alternative sources of energy.

The speakers pointed out that a shift towards a gas based economy would require adequate availability of natural gas through domestic production as well as imports, adequate investments in pipeline, LNG import terminal and City Gas Distribution infrastructure and even financial support in the form of incentives.

At the 5th IEF – IGU Ministerial Gas Forum was also held at the side-lines of this conference under the theme “Gas for Growth: Improving economic prosperity and living standards”. Ministers and CEOs deepened their dialogue, while engaging with industry representatives as well as energy thought leaders on the role of gas to enable an orderly energy transition that strengthens energy security, stimulates economic growth and enhances healthy energy market functioning, prosperity and wellbeing globally.

Ministers noted that on one hand the future of gas is bright considering 21st century demographics that require economic prosperity and living standards to increase across societies, but that on the other hand, established policies and business models require closer consideration in light of current energy market projections. To facilitate future gas demand growth trajectories, ministers and industry delegates affirmed their commitment to green technologies.

Also on the side-lines of the conference, events such as CEOs conclave, Buyers and Sellers meet, a special session on Fuel Retailing and YuvaUrja brought out various facets of oil and gas industry. The energy leaders at CEOs conclave agreed upon that the ongoing efficiency improvements and increased consumption of renewable, gas and nuclear power may allow India to deliver growth while meeting its targets. While the Fuel retailing session at FICCI deliberated the dominant role played by oil and gas industry in support of successful role out of demonetization drive and boosting the culture of cashless economy.

More than 200 young minds from across the country came under one roof for YuvaUrja session to understand what the future holds for young talent in oil and gas industry. In an interesting break from tradition, PETROTECH-2016 was ushered in with a special segment featuring women entrepreneurs in the industry.

Number of G2G and B2B meetings were held during this three day conference where convergent views and thought process led to identification of diverse areas of bilateral cooperation.

The Conference was successful in bringing forth the important point that with India’s long-term growth prospects our country is keen to deepen partnerships with countries. The PETROTECH-2016 was able to build on the ongoing oil diplomacy initiatives of the Government. It provided an apt platform for realistic assessment of energy portfolios and likely scenarios of future where concerns of consumers from countries like India and other developing nations get projected so that future plans can be built considering these issues.

It was also announced that Petrofed and Petrotech Society will be merged and next Petrotech will be organised by the new entity “ Federation of Indian Petroleum Industry”.