First Oil: Deepwater Development conference highlights renewed interest in that sector

KURT S. ABRAHAM, EDITOR-IN-CHIEF & CHIEF FORECASTER 

As I write this column from the sunny climes of Madrid, World Oil’s Deepwater Development Conference (MCEDD) is underway and thriving. There is no mistaking the renewed, growing interest in deepwater projects, and the attendance and program confirm it, Fig. 1.  

Fig. 1. Gulf Energy Information (World Oil’s parent) President and CEO John Royall delivers opening remarks to the crowd at the Deepwater Development Conference (MCEDD) in Madrid, Spain.

So far, we’ve had a half day of panels and presentations on March 25, and we’re in the middle of numerous presentations and panels during March 26. It is heartening to see the growing interest of operators in participating in deepwater plays, and the equipment/service sector is providing the technology to make projects happen.  

In no particular order, the operators participating in sessions at MCEDD include Repsol (host), Petrobras, TotalEnergies, Woodside Energy, bp and Galp. Additional operators are represented by attendees. Similarly, in no specific order, there is a great cross-section of equipment/service companies participating, including Wood, SLB OneSubsea, McDermott, DNV, Baker Hughes, Saipem, MODEC, Emerson, Worley, Neodrill and more.  

The program (ongoing as I write this) is covering a lot of ground in deepwater topics, including Strategies for Efficiencies; New Frontiers; the Role of EPC Contractors; Driving Innovation in Deep Water; Pipelines, Flowlines and Risers; Digitalization; Floating Facilities, FPSOs and Mooring Systems; Subsea; Decarbonization and Electrification; and Case Studies and Lessons Learned. Of particular interest to this editor, and an item that gained accolades from attendees was a special presentation on the deepwater potential of Liberia by Canadian independent BueEnergies. Delivered by CEO James Deckelman, the information on Liberia was thorough and interesting, and it was refreshing to see a pure independent explorer making major effort to prove out a new province. BluEnergies is obviously hoping that Liberia will reward its efforts in a way similar to how Namibia has been a windfall for operators.  

If you were not at MCEED/Deepwater Development 2025, you missed some excellent sessions, valuable information, and productive networking. We should have details in the next month or two on the location of next year’s conference. 

Trump sticks it to Venezuela. Love him or hate him, you have to admit that U.S. President Donald Trump is true to his word, unlike your average, professional politicians. The latest example is Trump on March 24 levying “a 25% tariff on all goods from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties” (a direct quote from the White House website), Fig. 2. The idea is to shut off the flow of money from oil sales that is propping up the administration of Venezuelan strongman President Nicholas Maduro. Trump had said repeatedly during his campaign last fall, as well as after winning the election and taking office, that he would make this move.  

Fig. 2. U.S. President Donald Trump has made good on a threat to levy a hefty tariff on Venezuelan oil. Image: The White House.

The tariffs will lapse one year after a country ceases importing Venezuelan oil—or sooner, if officials deem it appropriate. If tariffs are imposed on China, they will also apply to Hong Kong and Macau to prevent transshipment and evasion. As the White House announcement states, “these tariffs aim to sever the financial lifelines of Nicolás Maduro’s corrupt regime and curb its destabilizing influence across the Western Hemisphere.” This action also targets transnational criminal threats, such as the Tren de Aragua gang, and addresses the humanitarian crises fueled by Venezuela’s actions. 

The tariff announcement says that it is “addressing an emergency situation.” The announcement further states that “the Maduro regime poses an unusual and extraordinary threat to the national security and foreign policy of the United States.” The White House points out that the Maduro regime systemically undermines democratic institutions by suppressing free and fair elections and consolidating power illegitimately. Officials go on to say that Venezuela’s “endemic corruption and mismanagement under Maduro” have crushed its people and triggered a regional humanitarian and public health crisis. 

Accordingly, the announcement notes that millions of Venezuelans have fled Maduro’s oppressive rule, imposing significant burdens on neighboring countries and destabilizing the Western Hemisphere. One of those countries that has shouldered that burden over the last five years is the U.S. The White House goes on to say that the Maduro regime has aided and facilitated the infiltration of the Tren de Aragua gang—a designated Foreign Terrorist Organization—into the U.S. by failing to secure its borders, allowing the gang to flourish within Venezuela, and refusing to take action against its members. “These dangerous criminals exploited the previous administration’s open-border policies, establishing a foothold in U.S. communities and preying on American citizens through violent acts, including kidnapping, assault, and murder.” 

Summarizing the overall tariff action, the White House says that the Trump administration is “using our leverage to safeguard our interests: President Trump is using America’s economic might to safeguard our interests and punish those who support Maduro’s regime.” It is going to take a while to see whether this action reshapes the global oil market in any meaningful way, given the relatively low level of Venezuelan oil exports. Perhaps we’ll have a better clue at this time next month. 

Justin Trudeau has left the building. The long, nightmarish regime of former Canadian Prime Minister Justin Trudeau finally came to an end on March 14. From Feb. 26 to March 9, Canada’s Liberal Party held a vote on a successor for Justin Trudeau after he announced on Jan. 6 his intention to resign as the party leader and prime minister of Canada. Mark Carney, the former governor of the Bank of Canada, won a ranked-choice voting (RCV) election with over 85% of the first-preference vote and points, as well as a majority in all 343 ridings. This margin of victory surpassed Trudeau's 2013 leadership victory margin in vote share, points and ridings. Carney was then sworn in as prime minister on March 14 He is the first prime minister in Canadian history to have not previously held elected office. As prime minister, Carney is leading the Liberals into the 2025 federal election on April 28, 2025. 

The reign of Trudeau was a little short of 9 ½ years, but my oil and gas friends in Canada tell me that it felt much longer than that, given his antipathy toward the industry. Trudeau’s entire time as prime minister was characterized by an anti-oil-and-gas, green agenda that championed ideology over common sense, when it comes to Canadian energy. Nevertheless, in spite of Trudeau, the Canadian industry has boosted the country’s output of crude and condensate from 3.677 MMbpd in 2015 to 5.077 MMbpd in 2024, a 38.1% gain over nine years. This increase is similar to the gain made in U.S. production during the four years of former President Joe Biden’s term. In both cases, these gains in oil output had nothing to do with either administration and had everything to do with the industry’s incredible le technical prowess and advancements. 

Now, what is disturbing to this editor is that many Canadians seem to have not learned a damn thing from 9 ½ years of Trudeau. Indeed, one would think that the Conservative Party, under its leader, Pierre Poilievre, would be headed toward a victory on April 28 after being in the Trudeau wilderness for so long. You would hope that common sense would prevail, given that Carney is likely to continue many of Trudeau’s environmental policy stands. Yet, Carney in the last month has opened up a 2-to-4-point lead over Poilievre (some pollsters think the margin is even greater).  

This is partially due to significantly large leads that the Liberals hold in Ontario and Quebec, which cannot be overcome by the Conservative-friendly provinces of Alberta, Saskatchewan and eastern British Columbia. It’s also due to the collapse of the New Democratic Party, which has seen its share of Canadian voters plummet from 21% in December 2024 to just 7% in late March 2025. And, wouldn’t you know, the vast majority of those voters defecting from the NDP are going to the Liberals. As a U.S. industry friend of mine often says, “You get the government that you deserve.” Canadians are about to find this out the hard way in a month’s time. 

IN THIS ISSUE 

Special focus: Sustainability. We have three articles that relate directly to our lead theme of the month. In a thoughtful piece from SLB, two authors discuss the monetization of flare gas in North America onshore, in practice. They talk about how rigorous thermodynamic simulation and techno-economic analysis can help operators make the right call. Meanwhile, in the first half of a two-part article, an author from Saudi Aramco describes the industry’s transition to Net Zero emissions in an upstream technology outlook. Finally, five authors from QuantumPro and two cooperating entities lay out the case for nanoparticle tracer technology driving innovation in enhanced geothermal systems’ efficiency, and improving economics  

Coiled tubing with a sustainability angle.  We are blessed to have not one but two articles in this category. In the first article, AnTech authors describe the process of bringing geosteering efficiency to coiled tubing drilling operations on the North Slope of Alaska. They explain how deployment of a new azimuthal resistivity tool for coiled tubing drilling not only marks the first time it is being used on coiled tubing but also highlights just how effective it could be. I should add that this article ties in with this month’s cover image. Meanwhile, a Weatherford expert explains how permanent P&A is performed on coiled tubing, setting rock-to-rock barriers and protecting potable water sources. 

Regional report: Brazil. Contributing Editor Gordon Feller says that Brazil will see abundant problems but also opportunities during 2025. While still the dominant player, Petrobras may see its market share decrease as new companies enter the country. Brazil's oil production should increase, due to development in subsalt regions and new acreage. 

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