Despite these steps in the right direction, renewable fuels have limitations. Kim pointed to hydrogen and solar energy as two technologies in need of considerably more research.

At the opening session of the 18th international Offshore and Polar Engineering Conference in Vancouver, British Columbia, Dong S. Kim of Shell Global Solutions International talked about the status of global hydrocarbon production. In a speech titled “Beyond Easy Oil,” Kim talked about how the world is producing oil and gas and how that approach needs to change.

Kim began his analysis by identifying what he called “three hard truths” about the world’s use of energy:
1. There are more people in the world using more energy.
2. Though reserves are plentiful, there is no more easy oil.
3. There are environmental challenges the industry must face in exploring for and producing hydrocarbons.
These observations are not new. Many in the oil and gas industry are aware that these significant issues will have to be resolved if the world is going to have sufficient affordable energy.

This “trilemma,” as Kim calls it, is critical because although there has been significant investment over the years in alternative sources of energy, particularly renewables, the industrial world still relies predominantly on oil and gas. And for the foreseeable future, that is not going to change.

Despite the obvious challenges that lie ahead, Kim was optimistic in the face of this trilemma, noting that the industry has enormous human resources. “An innovative mind is the key to success,” he said.

Undeniably, the industry has made significant headway in the use of new technologies. There has been a terrific rate of technological change in the last 10 to 20 years, Kim said, but the perception is that change is not taking place fast enough. “Even rapid change can appear slow.

“We need more energy; we need less CO2. That is the challenge ahead of us,” Kim said, noting that renewables have made some headway in addressing this issue.

Despite these steps in the right direction, renewable fuels have limitations. Kim pointed to hydrogen and solar energy as two technologies in need of considerably more research. “There are many challenges,” he said. He was more optimistic about biofuels and wind energy, but noted that even in these areas, where he believes we have made significant strides, “We have a long way to go.”

According to Kim, much of the world’s future hydrocarbon demands will be met by new discoveries, better technologies for producing unconventional oil (GTL, oil sands, in situ conversion), and new ways of enhancing oil recovery.

In short, the industry will have to adapt, and it will have to do so quickly. “The way we produce and use energy today is not sustainable,” Kim said. The challenge will be to produce hydrocarbons more effectively and efficiently and to control CO2.

Integrated technology solutions will be the biggest contributor to change, according to Kim, with intelligent operations and “smart fields” playing a key role.

In any case, the biggest change will have to come from within the oil and gas industry. “We are the ones to make our industry grow,” he said.