Verne's fictional hero was trying to win a bet he'd made with members of his men's club when he set off, using a diverse variety of transport modes. I decided to forgo the hot-air balloons and elephants, settling for a more traditional method of torture - seat 36H in a Boeing 747. And all bets were off.

First stop was Amsterdam, where C.I. Communications, Ltd. organized one of its excellent C5 Business Forums on the Oilfield Services Market in Russia and the CIS.

Kicking off the program was meeting chairman Jerry Rohan, PriceWaterhouseCoopers' man in Moscow for the past 12 years. Setting the stage for 2 days of lively discussion, Rohan issued a challenge: "The present problems of the Russian oil and gas industry are to be solved by the oilfield services companies," he said. Rohan was followed by Nicola Pochettino, IEA Energy Analyst, who, while acknowledging Russia's huge energy potential, tempered his remarks by pointing out some uncertainties, namely the sustainability of production growth, commodity prices, export infrastructure and tax reforms. He concluded that Russia will cooperate with OPEC to keep prices up, but that huge investment is required to sustain production beyond 2010, and that major market reforms are required for the Russian gas business to reach its full potential.

Alexander Djaparidze, CEO of PetroAlliance strongly disagreed, "The Russian service industry is in the right place at the right time," he said. Describing the pre-1991 and post-1991 infrastructures, Djaparidze said, "The recent historical decline of Russian production was due in large part to the lack of a strong service/supply sector. Now, a few companies such as Schlumberger are key elements of the solution." He estimated the size of the oilfield services sector at US $5.5 billion (as of end 2003), and cited Greenfields and Brownfields development as well as smaller oil companies that do not have in-house technology as key drivers for market growth. Djaparidze predicted the service market will double, with a growing share going to international service companies.

With more than 14-years experience in Russia and the CIS, Robert L. Parker Sr., chairman of Parker Drilling Company, was the first western contractor to bring rigs to the market. With six rigs in Kazakhstan, two in Turkmenistan and one in Russia, Parker knows what he is talking about. Parker pointed out that while current economics don't justify newbuilds, major efficiency improvements can be realized by using first-class equipment, which, he said, can cut drilling costs by as much as 40%. "The best is yet to come." Parker said, as he revealed seven new rig designs.

Thunder from down under

23 hours later, I set down in Perth for the SPE Asia-Pacific Oil & Gas Conference, once again, delighted to find a nation that values its energy sector. Almost 600 delegates representing 21 countries benefited from an excellent technical program, punctuated by thought-provoking plenary sessions. Like Norway, Australia has its priorities right when it comes to energy development. The government is very "pro-development" and is working hard to provide access and streamline the approvals process. At the same time, they do not shy away from tackling tough problems. Recently, the government approved the siting of a liquefied natural gas plant on Barrow Island, a Class-A environmental preserve since 1910. Congratulating the industry's excellent HSE record and reputation, the Western Australia energy minister cited the "openness" of the enabling discussions and meetings.

Key presentations were made by Haji Akbar Tajuidin Abdul Wahab of Petronas, who described his company's global strategy, and Peter Bottom of OilSearch Ltd. who outlined his company's immensely successful 12-year, quadriphase strategy for developing its acreage in Papua New Guinea. Dr. Trijana Kartoatmodjo of BP MIGAS Indonesia described his company's renaissance since taking over Pertamina from the Ministry of Mining and Energy. And ChevronTexaco Managing Director Jay Johnson described new technologies and techniques the company is using on Barrow Island as well as in the subsea Gorgon field.

Back in Houston, a bit "foggy" but definitely enlightened, I am ready to go again, anytime. I've still got 71 days I haven't used yet!

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