TEL AVIV, Israel -- Day 1 of Gulf Publishing Company's
Eastern Mediterranean Gas Conference (EMGC 2014) concluded
with a well-attended gala dinner open to all delegates, and a
closing keynote address offered by Noble Energy CEO Charles
After Mr. Davidson took the podium, he lightheartedly joked
that he was sorry his speech was keeping attendees from the
steaming buffet tables, but that, luckily, the wine had
already been served.
The executive proceeded to briefly cover the history of Noble
Energy's operations in the Eastern Mediterranean and the
state of present developments undertaken by the independent,
Houston-based energy company.
Rapid growth set to continue. Mr. Davidson
expects Noble Energy's business to double in size over the
next five years, particularly in terms of cashflow and
reserves. Out of Noble's five major resource
developmentsthe Denver-Julesburg basin (US), the
Marcellus shale (US), the deepwater Gulf of Mexico (US), West
Africa and the Eastern Medall, with the exception of
West Africa, are expected to witness a doubling of growth by
the end of the decade.
Additionally, Noble Energy's customer base in the Eastern Med
has more than doubled over the last two years, to
approximately 15 buyers. The power generation market in the
Eastern Med continues to grow.
"There are more and more ways to encourage customer growth
and help [the companies] become more competitive," the CEO
Noble Energy's continuing exploration and appraisal program
in the Eastern Med predicts remaining potential of 3 billion
(B) bbl of crude oil and 4 trillion cubic feet (cf) of
natural gas. "Deepwater will be the 'name of the game' for
the coming years," Mr. Davidson asserted.
Bright promise for Tamar. The executive then
briefly discussed his company's Tamar and Leviathan field
developments in the Eastern Mediterranean. Tamar, a large
resource that went from discovery to production in four
years, has shown a strong performance.
The field's gas resource is "a great source of clean,
low-cost energy for the state of Israel" and will
substantially curb the country's need to expand its
coal-based power plants, Mr. Davidson explained.
Additionally, low-cost gas from the Tamar development is
expected to save Israel's economy $130 B in energy costs and
reduce approximately 195 million metric tons of greenhouse
Global aspirations for Leviathan. Mr.
Davidson concluded his keynote with some details on the
Leviathan development, which is about twice the size of
Tamar. The field "is intended to not only supply gas to
Israel, but also to move beyond that, for export," the CEO
Like Tamar, Leviathan is being designed for a very high level
and uptime. Noble
Energy is examining various options for Leviathan gas
production and export, including the largest FPSO in the
world, which would produce 1.6 Bcf of gas per day. The
company is also studying a possible floating LNG project
Such "giga-projects," as Mr. Davidson called them, "will
allow Israel to develop from a local [gas] supplier to a
regional supplier to a global supplier."