Beyond synergy: The revolutionary elements in horizontal technology

The petroleum industry is undergoing a fundamental restructuring that is changing the shape and texture of the business. Four principles are guiding this restructuring: proactivity, simplicity/focus, flexibility and synergy. These four elements are contained within horizontal technology applications in Canada and are impacting the upstream operating companies and the service and supply sectors. The evolving socio-economic and political environments of these changes within the petroleum industry are examined. The specific resource base potential, financial, regulatory and market forces that support the application of horizontal technology are addressed and their forecast impacts on industry relationships, production and economic trends over the next 5 years are discussed. The blurred distinctions between operating and service sectors will continue such that service entities will participate directly in oil and gas opportunities in consort with operating companies or countries. 4 refs., 3 figs