Kazakhstan partnership produced impressive results
The sixth annual KazEnergy Eurasia Forum brought together energy leaders from Kazakhstan, Europe and the United States to discuss global energy issues and Kazakhstan's role as a top energy producer. The event gave Chevron an opportunity to demonstrate how it has been an active partner with the country for 18 of Kazakhstan's 20 years of independence.
At the KazEnergy Forum in Astana, Kazakhstan, Scott Davis described Chevron's history in the country and addressed energy supply and demand issues during a session hosted by former news anchor Larry King (seated).
Scott Davis, managing director of Chevron's Eurasia business unit, spoke at the conference in Astana. "These past 20 years have been exciting times for Kazakhstan, our company and our industry. It's been a tremendous and rewarding experience to contribute to the country's nation-building and to lead Tengizchevroil (TCO), one of the most significant and successful partnerships in the region."
Davis took part in a panel, hosted by former CNN news anchor Larry King, on the geopolitics of Eurasian energy. He described Chevron's history in the country, which began with a meeting with Kazakhstan's president, Nursultan Nazarbayev. "Grounded in the principles of the rule of law and contract sanctity, [Nazarbayev] forged a framework that encouraged entrepreneurship and invited companies to invest in Kazakhstan, bringing new ideas, technology, financial capital and a desire to work together on some of the most technologically challenging oil fields in the world."
Davis described the resulting joint venture to develop Kazakhstan's largest-producing oil field, Tengiz. He listed "impressive" results from this "engineering and technological marvel":
- Production from the field went from 1 million tonnes in 1993 to 26 million tonnes in 2010
- Direct financial payments to Kazakhstan of more than $48 billion since 1993
- Tens of thousands of jobs created
- More than 80 percent of TCO's employees are Kazakhstani and fill 76 percent of managerial and supervisory positions
- Between 1995 and 2010, TCO spent about $10 billion on Kazakhstani goods and services, creating thousands of additional jobs
Davis also stressed the importance of continuing investment in energy while encouraging conservation. Due to population growth and improving living standards, global energy demand is projected to increase roughly 40 percent by 2035. To meet this demand, the global energy system will require an estimated $33 trillion between 2010 and 2035, or around $1.3 trillion per year.
"Pay attention to Kazakhstan," Davis said. "The country's role on the global energy stage is important today, but with the great potential of this country, you have only gotten a taste of what it is about to become."
Published: November 2011