Thank you very much for the opportunity to be here today. It is my great pleasure to be in Beijing and to represent OPEC at this Congress. I would like to take this opportunity to thank both the Congress organizers and our hosts for their kind arrangements.

The themes of my address to you today are technology and globalization, and I should therefore like to begin by reviewing technological developments in the upstream sector, before then moving on to the downstream, and finally discussing the trend towards globalization and the effect this will have on the oil industry. My remarks will, naturally, reflect these developments from the point of view of the petroleum-exporting countries, especially which are Members of the Organization I am leged to represent. those privi- DEVELOPMENTS IN UPSTREAM TECHNOLOGY In recent years, there have been two periods where non-OPEC oil production has received a significant boost from various factors. The first of these two periods, from 1975-1985, saw a combination of higher oil prices and a number of changes in the fiscal/legal conditions in OPEC Member Countries, which made some non-OPEC areas-previously considered uneconomic-commercially viable oilproducing regions. This, among other reasons, caused the western oil companies to concentrate their efforts on areas outside OPEC.

However, it is the second of these two periods, from 1992 to the present, that interests us today, because during this period the major factors cited by most experts in the growth in non-OPEC oil supplies have been the numerous advances in oil exploration and production technology, such as 3D seismic surveying, horizontal drilling, offshore technologies and enhanced oil recovery (EOR) methods. Let us look at each of these in turn, concentrating not so much on the technical aspects (which would be beyond the scope of this address), but on the application of these techniques and their effects. 3D seismic surveying This more modern three-dimensional method produces a detailed and accurate 3D picture of the subsurface. Such improved structural definition has a number of advantages, of which perhaps the most significant for all oil-producing countries is that it has appreciably reduced the overall costs of finding oil.

H orizo nta I d ri I I i ng One of the main advantages of horizontal drilling is that it is the most efficient method of increasing recovery rates, thus improving well productivity, boosting recoverable reserves, and making previously uneconomic areas viable. It-like many of the other technologies I am describing-has already been used with great success, particularly in non-OPEC regions.

Offshore technologies The remarkable developments that we have seen in offshore te

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