By Ben DuBose
HOUSTON -- The development of unconventional
energy sources will depend on progress made in water treatment
technologies and wastewater management, the CEO of the oil and
gas division of Siemens Energy said Wednesday.
Adil Toubia spoke at an IHS CERAWeek strategy session on the
globalization of unconventional resources. He noted that over
the next few years, the largest unconventional growth outside
of North America will be in the gas sector -- led by China,
Argentina and Saudi Arabia.
Saudi Arabia is particularly intriguing, the Siemens
executive said, because it has the resources and know-how to
make a big bet on unconventional energy.
However, further technology development is needed to
compensate for the lack of water in arid countries.
Toubia said that Siemens has a global footprint and is open
to partnering with companies in new unconventional plays around
the world, but stressed that Siemens will base investment
decisions on the potential for return on investment
and proper focus.
The panel, which included executives from Santos, Repsol and
Statoil, agreed that unconventional development requires a new
type of corporate mentality and focus for oil and gas
In particular, it will require an even greater emphasis on
having the right technical expertise and supply chain
management, as well as an increased willingness to seek
partnerships, the panelists said.
From a broader standpoint, the panelists expect
unconventional production to expand globally. But they
cautioned that the pace of development will be slower worldwide
than in North America because of regulatory constraints,
inadequate access to land and unattractive commercial
The IHS CERAWeek conference continues through Friday at the
Hilton Americas in downtown Houston.