For 900 business leaders gathered in Florence, Italy this week, having a “power lunch” is something taken quite literally. Representatives from many of the world’s largest oil and gas producers have assembled for today’s kick-off of the 11th GE Oil & Gas Annual Meeting — which is an interactive set of working sessions and talks in which GE and global customers such as Chevron, Shell, Petrobras and ExxonMobil share best practices and tackle technology challenges. The Oil & Gas team is also making a number of announcements this week at the summit, including a new contract in Abu Dhabi valued at over $200 million; one in Slovakia for $102 million; and the first order of GE’s latest subsea equipment by Shell U.K. for North Sea fields.
Stepping on the gas: In his keynote address, Claudi Santiago, President and CEO of GE Oil & Gas, said, “We are innovating to meet tomorrow’s energy challenges and over the next three years will spend more than $500 million on R&D.” Many of GE Oil and Gas’ breakthrough technologies come from GE’s global research labs, but it also has refashioned innovations from GE’s aviation, transportation and healthcare businesses.
In the video clip at left, Claudi Santiago tells the group that prospects for 2010 are “more encouraging,” adding that emerging economies will likely be the source of new oil and gas demands. He also noted the “big role” that gas will play in meeting growing electricity demands.
Claudi also stressed key components of GE’s innovation strategy such as pursuing partnerships, leveraging technologies from sister industries at GE, and being the industry leader in testing prototypes and proving technology concepts.
High-tech bedfellows: GE Oil & Gas has invested over $9 million in a new test bed to extend the capabilities of its Massa, Italy, facility, seen above, in preparation for the oncoming increase in liquefied natural gas, or LNG, activity. The new bed is designed for thermodynamic and mechanical tests on large compressors. Tours of the facility are being conducted for attendees at this year’s summit.
Michael BellamyAs Michael Bellamy, General Manager of Marketing for GE Oil & Gas, says in the audio clip below: “To meet rising demand for oil & gas, oil companies are having to open up new production frontiers with reliable technology that minimizes risk, drives production efficiency and addresses environmental sustainability. In our industry, asset owners and operators are, quiet rightly, cautious and even conservative when considering the perceived risks associated with being the first to adopt new innovations. Therefore, reliable innovation is absolutely critical.”
The Abu Dhabi deal announced today is to supply Hyundai Engineering & Construction with eight gas turbines and related services. Abu Dhabi’s Habshan facility is one of the largest gas processing complexes in the world. Read the announcement.
The Slovakia deal is to upgrade three pipeline compression stations — that were purchased in 1991 — to bring the facilities into compliance with new European Union directives to decrease carbon dioxide and nitrous oxide emissions. “This is a far more cost-effective solution than replacing this equipment outright with new units,” said Rastislav Nukovic, director of strategic projects for the pipeline’s operator, Eustream. Read the Slovakia announcement.
And the subsea equipment deal marks the first order by Shell U.K. Ltd of GE’s newest technology — the S-Series Subsea Tree — that has reduced its weight by 20 percent and is intended for harsh, shallow-water fields. Said Shell’s Jan Duinhoven: “Reliable, more compact and cost effective solutions are required in the mature Southern North Sea to be able to profitably develop the remaining gas accumulations.” Read the subsea equipment announcement.
Start ‘em up! GE’s Massa, Italy testing facility is seen here in an aerial view. The complex is designed to help customers avoid the typically more expensive and longer cycle test configurations used elsewhere. The Massa plant is located 75 miles west of Florence and packages turbo compressor units in addition to testing equipment. It also hosts new customer training facilities, where trainees can familiarize themselves with “live” start-ups of equipment.
* Read today’s announcement about the summit
* Learn more about the 2010 annual meeting
* Read the annual meeting agenda
* Learn more with our Oil & Gas fact sheet
* Read the “Innovation Now” brochure
* Read more Oil & Gas stories on GE Reports
* Read the Q1 2010 edition of the GE Oil & Gas Customer eNewsletter
* Visit the Oil & Gas website
