Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
COM
MARCH 2012
Intelligent
Operations
4-D Seismic
Drilling Fluids
Artificial
Lift
Deepwater
Advances
Regional
Report:
WEST
AFRICA
2012 RECORDS:
DRILL BITS
RAISE THE BAR
LUI!f
Thermal Tou
rr ?
HOLE
PERFORMANCE
Breaking
Field Records
M-iL
PLOWnwrowv.OILWELL vareto
2, E;
Ono
o u p o l y . . .I n l l e l t I d $ o l n t l o a 3
MARCH 2012
VO L U M E 8 5
A H A R T E N E R GY P U B L I CAT I O N
INTELLIGENT OPERATIONS
42
46
50
ISSUE 3
w w w. E P m a g . c o m
COVER STORY
34
4-D SEISMIC
54
56
DRILLING FLUIDS
62
66
ARTIFICIAL LIFT
70
74
DEEPWATER ADVANCES
82
84
96
REGIONAL REPORT:
WEST AFRICA
IndustryPULSE:
Spending increases in
2012 with a close eye
on certain challenges
10
WorldVIEW:
Portfolio combines
old, new assets
78
Takoradi Port, Ghana. (Image courtesy of Tullow Oil)
Unconventional: Canada
Canadian producers target
tight gas opportunities
AS I SEE IT
New sensor listens to rock music
MANAGEMENT REPORT
Managing employee fatigue: A new approach
to a long-standing challenge
14
20
23
EXPLORATION TECHNOLOGY
Data processing meets Cloud computing
29
WELL CONSTRUCTION
Fracturing technology is in the spotlight
31
PRODUCTION OPTIMIZATION
33
TECH WATCH
Heat capture technology minimizes waste
The LOW PRESSURE AUTOCHOKE
CONSOLE* (LPAC*) unit gives
86
TECH TRENDS
90
INTERNATIONAL SPOTLIGHT
94
INTERNATIONAL HIGHLIGHTS
ON THE MOVE/INDEX TO ADVERTISERS
100
102-103
LAST WORD
Taking the well construction conversation to total depth
104
high-resolution monitoring
ment, and mitigation as it applies to the upstream oil and gas industry and offers suggestions for improv-
The April issue of E&P takes a close look at risk ownership, manage-
ing exploration success and exploring in frontier regions. Land rig advances, subsea technology, and
service and supply vessels also receive special attention. Regional features include the Haynesville
shale and India. As always, while youre waiting for the next copy of E&P, remember to visit EPmag.com
for news, industry updates, and unique industry analysis.
ABOUT THE COVER The industry is investing more in advanced drill bit technology, resulting in savings on overall project costs (Inset photos courtesy of Varel,
Drillformance, NOV ReedHycalog, Baker Hughes, and Halliburton). Meanwhile, operators in West Africa are looking west as they anticipate presalt riches analogous to
those offshore Brazil. (Photo courtesy of Tullow Oil; cover design by Laura J. Williams)
Mi SWACO
A Schlumberger Company
www.miswaco .slb.com/LPAC
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston,
Texas 77057. Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149;
2 years (24 issues), US $279. Single copies are US $18 (prepayment required). Advertising rates furnished upon request. POSTMASTER:
Send address changes to E&P, PO Box 5020, Brentwood, TN 37024. Address all non-subscriber correspondence to E&P, 1616 S. Voss
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S. Voss Road, Suite 1000, Houston, TX 77057; Telephone: 713-260-6442 Fax: 713-840-1449; custserv@hartenergy.com. Copyright
Hart Energy Publishing, LP, 2012. Hart Energy Publishing, LP reserves all rights to editorial matter in this magazine. No article may be
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Subscribe @ EPmag.com/explorationhighlights
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have been given the distinct honor of being asked to substitute for Judy Murray,
who has decided to pursue a challenging new opportunity, in this column. We
will miss her and wish her well. I hope my views do justice to the high standard of
journalism she has set.
As a technical person, I am always alert to new ideas. It may interest you to know
how a single fiber-optic strand can be a versatile tool in the hands of a trained
completions engineer. We have all heard how fiber-optic distributed temperature
sensors (DTSs) are used to identify the thermal gradient anomalies caused by
fluid flow in the well or even behind casing. Of late, the use of microseismic fracture mapping from geophones located in offset wells has enabled the trained eye
to discern the propagation patterns of hydraulic fractures in near real time. In
some cases the information is available in the onsite data van in time to allow the
deployment of diverters to steer the fracture away from geohazards or into
untreated zones.
A new application for the ubiquitous fiber-optic cable is the distributed acoustic
sensor (DAS), where a fiber deployed in the well that is being stimulated can
detect the tiniest acoustic signals from the near-wellbore area. Not only can this
continuous listening device hear the microseisms generated as the rock fractures,
but it also can detect leaking external packers and the general behavior of fluids
over the course of the fracture treatment, including flowback. Who knew what a
symphony of sounds is emitted from a well under treatment?
Moreover, the DAS is enhanced when run in conjunction with the DTS; indeed,
they can be run in tandem using dual fibers. The complementary measurements
provide unprecedented insight into in-wellbore and nearwellbore activities. At
the very least, they will enable more effective fracture treatment designs to evolve.
This breakthrough was achieved under the leadership of Devon Canada Ltd. and
Pure Energy Services. It was supported in no small measure by Shell and QinetiQ.
The impact of this breakthrough could revolutionize fracture design. Heretofore, engineers have defined success by comparing results of the current well with
previous wells, an understandable yet flawed approach. A story circulating the oil
centers tells of an engineer who brought in a well at 1,000 b/d of oil. He went
home, declared a success, and took his wife out to dinner in celebration, never
knowing that the wells actual potential was more than 3,000 b/d.
These are early days. The chief issues revolve around
reducing processing time for the huge datasets, now
about 70 terabytes. Second is the potential for damage to
the fibers in the downhole stimulation environment. But
initial results clearly show these challenges to be worth
the effort.
5
industry
PULSE
his year has started on a positive note for the oil and
gas industry. Among a wealth of new developments,
ExxonMobil and Statoil confirmed that they will begin
planning production on the giant Julia deepwater oil
field in the Gulf of Mexico, while Valiant Petroleum
announced plans to embark on its most extensive exploration and appraisal drilling campaign ever in 2012.
Despite concerns over global economic instability, a
sense of optimism for the year ahead prevails, and a new
Economist Intelligence
Unit (EIU) report on the
outlook for the sector in
2012 suggests that theres
no sign of it stopping.
Commissioned by GL
Noble Denton, the report,
Big Spenders, provides a
detailed examination of
major trends expected
across the worldwide
energy sector over the next
12 months, according to a
survey of nearly 200 industry board-level directors
and policymakers.
An overwhelming 82%
of industry leaders surveyed for the EIUs second
annual oil and gas industry
barometer are either
Perhaps one of the largest changes in oil and gas executives sentiment over the past year is a shift in which region
companies see the greatest opportunities for revenue
growth. According to the report, North America has
placed first, indicating executives high hopes for strong
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Background
Employee fatigue programs revolve around the concept
of fitness for duty. Studies have shown that working
while fatigued is roughly equivalent to working while
under the influence of alcohol. Judgment is impaired,
corners are cut, and the crisp focus and attention to
detail that is necessary in this field can be compromised.
Although there are many sources of fatigue, there are
certain working conditions or operational states that can
significantly increase fatigue risk. Individuals who work
overnight shifts, for example, operate in a manner that
runs counter to the bodys natural wake and sleep cycle,
also known as the circadian rhythm. When these natural
patterns are disrupted or when work schedules lack consistently planned rest periods, fatigue becomes a factor. In
industries where entire communities could potentially be
placed in harms way through the actions of fatigued
workers, the need to mitigate this issue is most acute.
One of the first energy sector industries to tackle this
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The project
The project consisted of installing 21 sites across
Rumailah, including life support camps, de-gassing
stations, and rigs. The network required Internet,
data, and voice capabilities over a fully mesh-managed
VSAT network using SkyFlex technology. SkyFlex is built
around the Comtech SkyWire MDX420 platform, which
provides the core time division multiple access connectivity for remote nodes. Hermes BUC and LNB devices
provide the broadcast and receiver capabilities, with
Cisco routers providing the additional back-end management capabilities that enable companies to prioritize
and direct data, voice, and video traffic.
SkyFlex provides a comprehensive mesh TDMA solution enabling oil and gas companies to experience reliable, cost-efficient data and voice connectivity across a
number of remote sites within a country or region
where there is little or no fiber-based infrastructure.
According to Green, the team worked to ensure the
tight deadlines were met. The company faced pressure
because there was a significant rise in the number of
personnel who would require early use of the service
during the ramp-up to operations.
The first contract consisted of setting up 7 Mb of
satellite availability at 15 sites on Ku band, providing
connectivity for two life support camps and 13 rigs and
degassing stations. A second contract was awarded two
months later for a further six sites, again on 7 Mb Ku
band, for more rigs and degassing stations.
Complex logistics
The logistics of such a contract in Iraq were also challenging. A typical visit to a rig site in Iraq involves a lot
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accommodate the size of the equipment and bypass
potentially hostile threats in the area of operations.
18
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Pre-visit briefings are held to ensure security team members are aware of what is happening in the area; intelligence reviews are carried out to identify any recent
incidents or threats; and safe accommodation is
arranged in the area, normally at the US military
base, although in this case the base had a record of
coming under fire.
When personnel are out on the ground, pre-deployment briefings are held to train personnel on what to
do in the event of a road side bomb or small arms
attack, Green said. We provide B6 armored vehicles,
and the personnel are accompanied by security companies, which cost around US $4,400 per day, to ensure
that all possible actions have been taken to keep personnel safe. We insist on everyone wearing bullet-proof jackets and helmets.
BP awarded Hermes additional contracts to provide a
fully redundant VSAT system across its critical sites using
C and Ku band satellites, different teleports, and lastmile routes that were on a separate infrastructure. This
system utilized EIGRP technology so that both VSAT systems were utilized to their full potential. Load sharing
Growth potential
Hermes has been operating in the Middle East for more
than 10 years, with an office in Dubai established in 2008
to meet the growing demand within the region and to
enable the company to provide its regional customers
with more in-depth, direct, and extensive support.
Kevin Thorley, Hermes CEO Middle East, said, We
expanded our Middle East office with a dedicated team
of engineers and a 24-hour help desk. From an office of
just two in 2008, we have now grown to 22. We see
tremendous growth in Iraq and across the region in the
next five to 10 years. Our mission is to ensure that we
are not only effectively established within the region,
but that we also are continuously developing and
strengthening our offering to cater for future demand.
The oil and gas companies are not just looking for
a VSAT provider; they are looking for a company that
offers an integrated solution, Thorley said. We are
working with partners to make sure we deliver turnkey
projects that would involve fiber and last-mile access in
addition to VSAT, fixed, mobile, and microwave services.
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26
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HUGHES
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exploration
TECHNOLOGY
RHONDA DUEY
Senior Editor
rduey@hartenergy.com
Read more commentary at
EPmag.com
cluster for computation on the Cloud. No data is stored
on the Cloud, and that solves the security issue, he said.
Data are distributed across all available nodes, whether
theyre cluster-based, desktop-based, or Cloud-based.
What really sets Advanced Seismic apart from the competition, Almon said, is the Windows integration piece
that also can run Linux code on the back end. A lot of
people have the science, he said. Its the modern Windows-based GUI thats a leap forward with the 20- or 30year-old software thats out there.
And because its an open platform, we can take any
science and plug it into our system. This enables people
to take their code and very easily plug it in. Our system is
modular and open.
The company also is taking advantage of GPU computing, running both its RTM and radon demultiple algorithms on GPUs. This helps streamline data processing.
If youre doing parallel programming, where every
core can process a stream of floating point numbers, you
have orders of magnitude difference in the ability to
process certain algorithms, he said.
In Almons mind, the data processing industry is more
than ready for this type of change. Theyve got a code
base thats so old, he said. It was written for UNIX
when memory was at a premium. Nowadays, storage is
cheap, memory is cheap, and hardware is cheap.
Its time for the industry to see something new and
refreshing. Even if people dont buy our software, I think
were shining a light on the darkness
of historical platforms that need to
be refreshed.
For more information, visit
Advancedseismic.com.
29
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01.A
C 24
DRILLING FLUIDS
,`
well
CONSTRUCTION
Fracturing technology
is in the spotlight
Given the wide array of available tools and services, fracing technology
is a major focus for many E&P companies.
31
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VALLOUREC & MANNESMANN TUBE S
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OPTIMIZATION
A capital idea
Lets stick to the budget
Nearly 30% of large E&P capex projects suffered 50% cost overruns last
year, and the figure is still rising.
ts not often a conference presentation gets an audible gasp from a battle-hardened audience, but thats
what happened during a talk that highlighted a dark
truth about the E&P business.
The subject of cost overruns on major projects is a
sensitive one and not normally a favorite conversation
topic in the upstream business. So it was laudable of
Chris Bird, technical director at Centrica Energy, to
highlight at the Subsea 2012 event in Aberdeen how
badly the sector is doing in some cases. Actually, in
rather a lot of cases.
The numbers speak for themselves, and at first, it
sounds good. In 2012, oil and gas capital expenditure
is estimated to be between US $500 billion and $600
billion. There has been a fourfold increase in capex in
the last 10 years alone. This year, compared to 2011,
national oil companies, which make up 50% of market spend, are forecast to boost capex 15%. Independent oil companies, which make up 15% of market
spend, are expected to increase capex 21% year-onyear. Integrated oil companies, with 35% of market
spend, are expected to raise capex 8%.
So it should be of extreme concern that 28% of
all last years large projects ran more than 50% over
budget, according to Bird.
Its been a worsening trend over the last 15 years in
1997, the percentage of large projects going more than
50% over budget was 10%. In 2005, it had risen to 15%,
and last year, it was 28%. By 2015, it is predicted to be
even worse, he said.
Project size plays a part as well. The figure for $5
billion-plus world class projects going over the 50%
mark is around 35%, while for those under $5 billion
the figure is around 25%.
Bird also highlighted that more than 70% of projects
fail to meet customers expectations.
How can an industry that prides itself on its expertise
and project management skills be so wide of the mark?
The key causes, according to Bird, are:
People & Organization. The difficulty of matching
the right skills with the right project challenges and
geography;
MARK THOMAS
International Editor
mthomas@hartenergy.com
Read more commentary at
EPmag.com
Technical Challenges. Operators tackling technology
challenges they are not equipped for; and
Governance. Top-down targets affecting project decisions quality and accountabilities and objectives not
well-aligned across project phases.
He also mentioned the challenging global business
environment, the growing complexity of projects, people more than access to capital becoming the bottleneck, and a supply chain that is stretched in many areas.
Theres not enough room to go into the solutions
he outlined as Centricas short-term priorities for
delivering world-class capital project performance. In
a nutshell, however, it came down to this: The industry needs to take another look at how it delivers capital projects in the wider sense, considering how it
manages the business as well as the project; the
biggest issue is access to the right level of resources
with the right competency, capability, and capacity to
deliver effectively. The industry also needs to look at
potential future trends and ensure it has the best strategy for the supply chain from a contractor management and relationship management perspective. And
it needs to examine how it works together harnessing
the power of teams to deliver high performance in the
development phase.
Bird added that the industry needs relentless
focus at the development phase pre-final
investment decision.
For the E&P industry to do anything other than try to turn
around this apparently spendthrift behavior would surely be
almost criminal.
33
COVER STORY:
DRILLING ADVANCES
New bits,
technology
raise bar
on drilling
performance
Tayvis Dunnahoe, Senior Editor
Hybrid technology
The benefits of combining multiple qualities into one
component or machine can create improved performance
without necessarily reinventing the wheel. Although the
concept was not new, Baker Hughes recently commercialized its old idea of manufacturing a hybrid drillbit to combine roller cone and PDC technology to produce a hybrid
bit with maximum durability and cutting efficiency in
tough and challenging applications compared to conventional bit technology.
34
COVER STORY:
DRILLING ADVANCES
The Kymera, a hybrid drill bit using both roller cone and PDC
technology, drilled more than twice as fast as premium rollercone bits in a basalt formation in an Icelandic geothermal
application. (Image courtesy of Baker Hughes Inc.)
The vast amount of growth experienced in North American shale plays has provided ample room for a number
of record-setting achievements. Extended-reach drilling,
multilateral well bores, and building curve from vertical to
horizontal are not as challenging as they once were. However, continuous improvement is required to maintain low
costs while drilling. Reducing cycle times brings on the
completion stage sooner, which can account for around
50% of a well cost in most unconventional shale plays.
Bits are big news in the unconventional market.
Ulterra recently set a footage record for Roger Mills
County in Western Oklahoma with its new 12-in.
U616M six-blade matrix PDC bit using 16-mm cutters.
The bit drilled 2,153 m (7,065 ft) from surface casing
down to a depth of 2,474 m (8,115 ft) for an estimated
cost savings of US $44,500 versus the closest offset. This
savings increased to $88,500 when compared to the average of five offset wells. The companys latest generation
U616M is the result of extensive bit design and cutter
SURFACE S Y S T E M S
RAISING
PERFORMANCE . TOGETHER TM
www.c-a-m .com/fracfacts
CAMERO N
COVER STORY:
DRILLING ADVANCES
that enhanced drilling capabilities across multiple sections throughout the drilling campaign. The MPD system
improved safety and efficiency through early kick detection and control, riser gas handling, and two variants of
MPD: constant bottomhole pressure and pressurized mud
cap drilling. Constant bottomhole pressure is used in narrow margin drilling scenarios, and pressurized mud cap
drilling is used in total lost circulation conditions.
The companys deepwater MPD system is installed
above the intermediate flex joint in the riser and below a
standard slip joint. As a result of this configuration, the
riser can be used in a conventional manner with full-bore
access to the well. The entire system is installed through
the rotary table when the riser and BOP are deployed.
The 12-m (40-ft) MPD system provides riser gas handling and early kick detection/control in drilling sections
when the BOP is connected to the well. The riser MPD
assembly used on the GSF Explorer comprises three main
components: the flow spool, operational annular preventer, and rotating control device (RCD). The flow spool
provides the connection for the flowlines from the top of
the riser to the MPD manifold. Two 6-in. flowlines are connected at the moonpool to allow returns to flow through
the MPD manifold to the shale shakers and mud pits. A
erwise undrillable conditions while improving safety and efficiency. (Images courtesy of Weatherford International)
COVER STORY:
DRILLING ADVANCES
SURFACE SYSTEMS
wxaz
'use'
^ J!
roll
RAISING
P E R F O R M A N C E . T O G E T H E R TM
www.c -a-m.com/fracfacts
CA MERON
COVER STORY:
DRILLING ADVANCES
38
There is more
to the story
READ MORE ONLINE
EPmag.com
SURFACE SYSTEMS
It 11
e 11 1 1
RAISING
P E R F O R M A N C E . T O G E T H E R TM
www.c-a-m.com/fracfacts
CA MERON
COVER STORY:
DRILL BIT RECORDS
SINGLE-RUN FOOTAGE
SIZE, IN.
BIT STYLE
TYPE
FOOTAGE
3.25
7.875
8.25
8.625
8.75
8.75
9.5
9.625
9.625
9.75
9.25
Bicenter
PDC
PDC
Natural Diamond
PDC
Natural Diamond
Bicenter
Natural Diamond
Bicenter
Hammer
Bicenter
1,709
12,280
4,170
883
17,251
3,257
7,473
1,751
3,973
5,155
476
52
65.7
33.1
7.7
88.5
17.4
80.4
5.3
110.4
122.7
8.1
YEAR
2012
2010
2011
2011
2011
2011
2011
2008
2011
2011
2011
16.375
17.5
18.125
26
28
36
44
PDC
PDC
PDC
PDC
Insert
Milled Tooth
Milled Tooth
SRF3408M-A1-Z
MI616MNSPX
MDSI816LUPX
K507QSTBPXC
MSi513
K705BQTBPXC
QDMI4219PX
K705TBPXC
E1098-C1
H1209D+
PSDR5316S-A1
sn E148002
MDI619HSPX
E1016
MDI816LBPX
SI816PX
GS18BVQC
XR+
L111
8,496
14,599
10,770
3,833
5,583
722
120
181.5
149
141
118.4
19.9
45.1
2010
2010
2010
2011
2011
2009
2011
FIELD
OPERATOR
MANUFACTURER
Kuparuk
Begert D10
ConocoPhillips
Laredo Petroleum
BP
XTO
EnCana Corporation
Devon Energy
OXY
Linn Operating
Occidental of Elk Hills Inc.
Chesapeake
Kuwait Oil Company
NOV ReedHycalog
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
NOV
Smith Bits
NOV
ARBI-5
BHP-Billiton
ExxonMobil
BHP-Billiton
BHP-Billiton
Kuwait Oil Company
YPF
Aramco
Smith Bits
NOV
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Varel International
Durant Wes
Kiwigana
Himphill
Cano Limon
Verden
Elk Hills
B-43
Mutriba
Odoptu
North Kuwait
RATE OF PENETRATION
SIZE, IN.
BIT STYLE
3
3.25
6
6.125
8.5
8.625
8.875
9.25
Bicenter
Bicenter
Bicenter
Bicenter
Natural Diamond
Natural Diamond
Hammer
Bicenter
9.625
10.75
16.375
18.5
24
TYPE
FOOTAGE
SRR3408M-B7-Z
1,501
SRF3408M-A1-Z
919
MBC58
233
MBC58
3,311
K705TBPXXC
1,549
K507QSTBPXC
883
H1512G1
1,511
PSDR5316S-A1
476
sn E148002
Natural Diamond K705TBPXC
1,751
Bicenter
PSDF4313M-A1
3,885
PDC
MDI619HSPX
4,182
PDC
VTD619SH
4,707
Milled Tooth
XR+CPS
1,697
26
34
44
PDC
Milled Tooth
Milled Tooth
SI816PX
L3A
L111
3,327
449
120
OPERATOR
MANUFACTURER
YEAR
2012
2012
2010
2008
2009
2011
2010
2011
FIELD
102.6
69.6
11.4
37.6
45.9
7.7
302.2
8.1
Kuparuk
Kuparuk
ABSF
Zulf
Rotokawa
Durant Wes
B-43
Mutriba
Conoco Phillips
Conoco Phillips
Aramco
Aramco
Mighty River Power
XTO
Chesapeake
Kuwait Oil Company
NOV ReedHycalog
NOV ReedHycalog
Varel International
Varel International
Smith Bits
Smith Bits
Smith Bits
NOV
5.3
235.5
213.3
81.76
404
2008
2011
2008
2010
2008
Verden
Elk Hills
Smith Bits
NOV
Smith Bits
Varel International
Smith Bits
173.6
33.3
9.23
GoM
SAU
SAU
2011
2010
2011
HRDH
ARBI-5
Linn Operating
Occidental of Elk Hills Inc.
BHP-Billiton
Carigali Hess
Sabah Shell
Petroleum Company
BHP-Billiton
Aramco
Aramco
# RUNS
LOCATION
North Slope Alaska
Santander, Colombia
Veracruz, Mexico
Yuma Co., CO, USA
GoM, TX, USA
Roberts Co., TX, USA
Kazakhstan
Kern Co., CA, USA
Hidalgo Co., TX, USA
Irkutskaya, Russia
Krasnoyarskiy, Russia
Brunei
Kuwait
Turkey
Turkmenistan
Krasnoyarskiy, Russia
Offshore, Egypt
GoM, LA, USA
Malaysia
Campeche, Mexico
GoM, LA, USA
YEAR
2012
2011
2011
2011
2009
2010
2010
2009
2010
2011
2011
2010
2010
2010
2010
2011
2011
2011
2011
2011
2011
FIELD
OPERATOR
MANUFACTURER
Kuparuk
Multiple
Multiple
Multiple
Muliple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
ConocoPhillips
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
Multiple
NOV ReedHycalog
Smith Bits
Smith Bits
Smith Bits
Smith Bis
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Smith Bits
Bumi
Gumusut Kakap
Smith Bits
Varel International
Varel International
CUMULATIVE FOOTAGE
40
SIZE, IN.
BIT STYLE
3.25
9.5
9.5
9.5
10.25
11
11.625
13.25
14.5
15.5
15.5
16
16
16.5
17
19.25
23
26
27.5
28
30
Bicenter
Bicenter
PDC
Milled Tooth
PDC
PDC
Milled Tooth
Bicenter
Milled Tooth
Milled Tooth
Insert
Bicenter
Insert
Milled Tooth
PDC
Milled Tooth
PDC
PDC
Milled Tooth
Milled Tooth
Milled Tooth
TYPE
SRF3408M-A1-Z
QDMI4219PX
MDI519MHSPX
FDS
MDSI716TBPXCI
M716VPX
XR+CPS
QDR5316PX
XR+
XR+V
GS10V
SHO716BPX
GS12BVQ
XR+
S519HPX
DSJ
SI819VHBPX
SI816PX
DSJ
MSDGH-7
XR+VE
FOOTAGE
6,554
17,771
46,404
7,865
12,152
58,709
9,452
6,889
11,237
7,755
5,004
11,085
12,656
2,243
32,237
867
2,089
5,168
2,526
7,339
7,819
6
4
19
18
6
24
6
4
3
4
6
7
5
2
11
5
2
3
2
5
10
15
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INTELLIGENT
OPERATIONS
42
REAL-TIME SERVICES
I]
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41
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You worry about safety and loss of well control. Delivering a well to plan. Decision support. Drilling
efficiency. And a lack of staff and communication. But not all real-time solutions are equally flexible
or effective. Vendor neutral , Halliburton offers customizable options that put your best interests
first . Ranging from basic well-site and downhole tool data streaming to business transformation ,
Halliburton solutions provide collaborative processes that minimize mistakes and NPT.
What's your real-time challenge ? For solutions , go to Halliburton .com/RT.
Solving challenges:"
HALLIBURTON
Near-wellbor
...far-r Paening rPl;iIts
c.:
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Fra?,
tUr? ng"
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TENDS
INTELLIGENT
OPERATIONS
Putting an end to
successful failures
The difference between success and failure often lies in the ability to communicate
properly with key decision-makers in a timely fashion. Here is how one
North Sea operator ensured a successful success.
Global connectivity facilitates real-time operations on a worldwide scale. (Images courtesy of Schlumberger)
INTELLIGENT
OPERATIONS
users around the world. This latter capability secured virtual collaboration of experts from their individual locations in real time.
Special processes for handling the data were developed. These included integrated workflows to eliminate
the need to wait for final data, some of which are only
available after the test string is pulled out of the well.
Often there are indicators that a process needs changing before all the data are in, and bringing real-time
monitoring into play allows changes to be made on the
fly as requirements change.
In the test environment, early indicators derived from
real-time data can suggest the need to change choke
sizes or sampling times. Flow simulations across the surface test spread can predict hydrate formation issues
and safety effects like erosion of pipework; hence, remedial actions can be taken. In instances where real-time
bottomhole pressure and temperature are unavailable,
these parameters can be estimated using well-known
engineering software and streamed into the workflow.
This allows the test to be evaluated in real time. Later,
when actual data becomes available, it also can be integrated into the models, allowing final interpretation to
be performed.
47
INTELLIGENT
OPERATIONS
Flu l Control
sIIII T
vvrr n? tiw
FLU/DS
NOV FluidControl has experts in fluids
engineering and processing that will work in
partnership with you to develop a solution
that defines success. We know it's not just
about providing fluids and waste
management services , it's about helping
you achieve well development success.
www.nov.com / F1uidContro l
Email:fluidcontrol@nov .com
Compan y
...
Un ll m lt e d
S o Iu IIo n s
INTELLIGENT
OPERATIONS
BP pioneers second
generation of digital oil fields
BP Norge enhances its existing experience in digital oilfield technology by creating
two second-generation fields of the future.
A digital infrastructure
The installation of low-latency, high-bandwidth fiber
optic-based telecommunications in 1999 underpinned
the successful implementation of the technologies in BPs
The Valhall field is shown with the new field center in the foreground. (Images courtesy of BP Norge)
50
INTELLIGENT
OPERATIONS
Remote control
BP adopted a degree of remote control
management (RCM) for the Valhall
field from shore and combined it with
the extensive use of advanced collaborative environment (ACE) technology.
The installation of a second independent fiber-optic communications link
associated with the HVDC provided
the robustness of communications
needed for remote operation.
Based on a review of value, risk, and
tactical considerations, all the primary
processes, surveillance, and control of
the safety systems remained offshore
while some specific functions, such as
controlling the wells, would be done
from shore.
The control room was designed to
reflect the same look and feel as an offshore facility, with the same access to
wireless communications and PA systems. A large video wall with high-quality audio equipment was provided
offshore and onshore to give staff the
feeling of being in the same room.
With more than 100 drilled wells
and approximately 100 wells yet to
drill, significant value is to be gained
through well optimization. Well management complexity is increasing due
to a shift from primary depletion
toward depletion based on waterflooding, expanded gas lift, and the use of
EPmag.com | March 2012
Geospatial and
Wi
11;L
Compliance
Monnrlpripnt
la?
51
INTELLIGENT
OPERATIONS
The Skarv FPSO has been equipped with a fiber-optic telecommunications infrastructure to shore.
52
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PGS MultiClient
The starting point for your next success
Fro m new frontiers to the world's mature basins, PGS is committed to delivering the ri g ht data, in the ri g ht
p lace at the ri g ht time to support your exp loration. Wherever you need hi g h quality, hi g h resolution data that
helps de-risk prospects , our global coverage makes us ready where you are.
A Clearer Image
www.pgs.com
,
P
'W M
N
4-D
SEISMIC
Data quality
Repeatability is a key factor in 4-D success, and land 4-D
has one distinct advantage over marine 4-D: source and
receiver positions can be repeated with a high degree of
accuracy. This is important because rapid near-surface
variations found onshore demand accurate sourcereceiver repositioning to minimize differences in
backscattered, shot-generated noise. But near-surface
properties also are subject to seasonal and water-table
changes, making repeatable surveys challenging.
In general, land seismic data have poorer quality compared to marine data, often dominated by ground roll
and refractions. Working oil fields have high ambient
noise. Infrastructure is more spread out than in offshore
fields and can impact a greater area of the survey.
New construction can prevent reoccupation of baseline
source and receiver positions on monitor surveys. There
also can be permitting issues that limit access to
parts of the survey area and, in some
fields, rough terrain. Because of
the size of land crews, there is
greater HSE exposure and a larger
environmental footprint compared to
marine surveys.
New technology
Developments in land seismic acquisition
could help overcome some of these
challenges. Cablefree recording systems result in more efficient field
operations with greater accessibility
and a smaller footprint. Increased
channel counts result in a higher signal-to-noise ratio. Limitations of the
near surface might be overcome by
This map indicates the authors best guess at the locations of land 4-D projects to
permanent and continuous monitordate. These include repeat borehole seismic surveys. The concentration of 4-D projing systems and by concepts like the
ects in North America is associated with thermal recovery and CO2 enhanced recovvirtual source. Indeed, results have
ery monitoring. (Images courtesy of ExxonMobil Production Co.)
shown that with careful attention to
54
4-D
SEISMIC
Production costs associated with depletion strategies used for many onshore
fields are higher than for offshore
fields. According to the International
Energy Agency (IEA), conventional oil
and gas (outside deep water and ultradeep water) costs about $5/bbl to
$40/bbl to produce. For CO2 floods,
heavy oil and bitumen recovery, and
other EOR processes, production costs range from
$30/bbl to $80/bbl, requiring more efficient operations
and increasing the incentive for reservoir surveillance.
In situ production of heavy oil sands and bitumen,
which already represents the most common application
of land 4-D, is expected to grow from about 1 MMb/d in
2010 to more than 5 MMb/d in 2030. According to one
IEA scenario, enhanced oil recovery will similarly grow
from about 1.25 MMb/d in 2015 to 5.5 MMb/d in 2030.
These projects will mostly involve CO2 injection and are
almost exclusively onshore.
Additional opportunities for land 4-D could be substantial. Onshore fields represent the bulk of the current world resource base 55% of the fields but more
than 80% of the proved and probable reserves. The outlook for the future is essentially more of the same. By
2030, the IEA estimates that more than 60% of daily production is expected to come from onshore fields. And
carbonate fields will dominate this production. Their
inherent complexity practically demands 4-D seismic to
monitor fluid movements.
There is one additional incentive for land 4-D environmental monitoring. There is likely to be a significant
increase in carbon capture and sequestration (CCS)
projects. Current CCS pilots are almost all located
onshore and are spurring the growth of 4-D seismic to
monitor the CO2 injection, driven in part by regulatory
requirements. In addition, about 60% of Middle East gas
reserves have high H2S content, potentially spurring
demand for monitoring sour gas injection.
Is there a future for land 4-D seismic? There are certainly technical challenges and economic barriers. But
with increasing production from onshore fields, increasing exploitation of heavy oil, increasing EOR, and the
increasing need for environmental monitoring, the
opportunities for land 4-D are significant. Perhaps we
are asking the wrong question. If there is a future for
4-D seismic, is it going to be on land?
55
4-D
SEISMIC
n 2007, Shell acquired its first ocean bottom seismometer (OBS) survey in the deepwater Gulf of Mexico (GoM) Mars basin to obtain improved illumination
of structurally complicated targets. This was a success
and led to the discovery of the Boreas reservoir a couple
of years later. In 2010, building on the demonstrated
value of OBS, Shell embarked on a phased campaign of
OBS acquisition at several locations in the deepwater
GoM for exploration, development, and 4-D analysis.
Acquisition
The 2007 survey was acquired with roughly 800 Z3000
Fairfield Nodal nodes deployed on a hexagonal 400-m
(1,300-ft) grid. The source was towed 12 m (40 ft) deep
to ensure that low frequencies were generated strongly
enough to illuminate the subsalt targets. The full extent
of the receiver patch in 2010 was different than the 2007
survey and covered additional exploration objectives to
the northeast and south of the Mars tension-leg platform (TLP). The source depth of the 2010 survey was
decreased to 10 m (30 ft) to obtain higher frequencies
for the shallow above-salt reservoirs.
As the number of nodes to be deployed was larger
than the number of physical units available, nodes were
rolled from one side to the other of the survey, which
was a first in the GoM. For both surveys, a dual-source
airgun boat was used. For the 2010 reshoot, differences
in sea current conditions made it unrealistic to attempt
to repeat the actual 2007 shot positions. Instead, the
2010 survey was designed to acquire the nominal 2007
shot grid.
56
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AREAS OF EXPERTI SE
TTnnnnvantinnal Regorvnirc
To overcome the safety and efficiency challenges associated with 4D marine seismic
acquisition , ION collaborated with a major oil company to develop a cost-effective solution.
Complex Geologies
Basin Exploration
optimization services, the client achieved over 20% infill reduction while exceeding repeat-
Reservoir Exploitation
ability requirements for the survey. Whether you are sizing up the prospectivity of a frontier
ion
basin or looking to extract maximum value from a mature reservoir, look to ION for breakthrough innovations that help you achieve your most ambitious objectives.
4-D
SEISMIC
When comparing the amplitude map (left) of the H1 reservoir for the 2010 data and corresponding 4-D difference map (right) between
the 2010 and the 2007 surveys, a clear 4-D signal can be seen near the downdip well where water coning is occurring. Note the clear
correspondence between the 4-D signal and the depth contour.
/A
is the warmer,
sat
58
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4-D
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DECISION.
Rely on TGS to provide you with a comprehensive suite of geoscience
data and services to help you make better decisions on every project.
Worldwide 2D and 3D multi-client seismic libraries
Industry 's largest global database of digital well logs and regional interpretive products
High-end depth imaging services to help resolve complex seismic imaging problems
Permanent Reservoir Monitoring solutions
T&S)
Learn more at
See the
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62
Performance
The 6.25-in. lateral section through
the Mississippian proved to be hard
and abrasive, and weight on the bit was
limited to improve PDC bit life. Penetration rates averaged 4.6 m to 7.6 m
(15 ft to 25 ft) per hour while rotating
in the abrasive limestone formation.
Rotating torque ranged from 10 ft-lbs
to 12,000 ft-lbs. Several bit trips were
required to drill the interval. All trips
were without incident, with overpull
weights at 10,000 lbs or less, and no
reaming was required returning to
bottom.
Fluid lubricity was monitored at the
well site throughout the interval, and
lubricity coefficient values held steady
at .08 to .09 throughout the interval
following displacement, comparing
March 2012 | EPmag.com
W- T
ROIIVATER"
ENERGY SOLUTIONS
FLUIDS MANAGEMENT
STIMULATION CHEMICALS
FRACTURING ADDITIVES
Environmental Solutions
SIBENCHMARK EnerMAX
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GUAR TECHNOLOGIES
WATER TRANSFER
FLOWBACK
WELL TESTING
technologies to meet the water , stimulation, fracturing, fluids, and production needs of
our customers throughout every major North American shale play. Our companies have
CEMENTING CHEMICALS
been serving the oilfield for over 35 years. We meet your logistics needs with a fleet of 550
PRODUCTION CHEMICALS
trucks ,3 million gallons of storage capacity, 5 sand transloading facilities , and over 380 miles of
pipes and pumps. We provide a wide selection of polymer slurries and specialty chemicals for your
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Our mission is to maximize the oil and gas production of our customers while reducing their costs
'Ago
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EAGLE FORD I BAKKEN
PERMIAN
MARCELLUS %I_UTICA
.
r ARK-LA-TEX
BARNETT
GRANITE WASH
ROCKIES
CANADA
DRILLING
FLUIDS
Results
The water-based drilling fluid system provided ample
.. ,
lubricity and stable gauge well bore throughout the horizontal production interval to a precise target, enabling
trouble-free drilling, tripping, logging, and running casing
to TD. No fluid losses were experienced. Trip time and
time required to run casing were improved versus offsets.
Fluid rheology and filtration rates were efficiently controlled within programmed parameters using only basic
system formulation and products to promote penetration rates and adequate hole cleaning throughout the
interval, satisfying operator goals for efficiency and total
well cost.
This first horizontal application of the high performance water-based drilling fluid system here in Kingfisher
County resulted in virtually zero NPT or fluid losses
while drilling/sliding, tripping, logging, and ultimately
running and setting production casing efficiently to TD.
Overall operational efficiency achieved by the operator
immediately established a rigorous standard by which
future Lower Mississippian horizontal projects will be
measured.
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Lloyd' s Register and ModuSpec are t ading forties of the Lloy d' s Regis te r Group of entities . Servi ces are provided by members
of the Lloyd' s Register Group. For further details please see our web site: www. lr.org / entities
64
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DRILLING
FLUIDS
DRILLING
FLUIDS
Test protocol
Once a core plug has been properly
cleaned and centrifuged, the sample
is loaded into a permeameter for
testing. Testing is conducted at reserEPmag.com | March 2012
An optimum bridging particle blend shows the target blend, which is related to pore size
distribution and optimized blend of sized calcium carbonate.
67
DRILLING
FLUIDS
responded with a greater reduction in regained permeability by as much as 19.6%. The core samples with much
lower filtration demonstrated high return permeability.
Going GREEN?
NAS
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5 Manufacturing Locations:
CONTACT US AT:
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National AS A C a: Cn It
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D r i l l i n g a n d Comp letion
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] www.cnlc.cn
t. Tel: 86-10-59285691
ARTIFICIAL
LIFT
ore than 90% of the worlds producing wells currently use some form of artificial lift technology,
according to Schlumberger.
Spears & Associates October 2009 Oilfield Market
Report estimated that the global artificial lift market
was worth US $5.8 billion in 2009 a figure that is likely
to have increased over the last few years. In addition,
according to the OPEC Annual Statistical Bulletin
2009, there are 1.48 million producing oil wells, of
which only 30,000 are free-flowing.
While electric submersible pumping (ESP) techniques
have tended to lead the way, there also has been an
increase in popularity for gas lift, where gases such as
CO2, natural gas, or nitrogen are injected into the production tubing to reduce the impact of the hydrostatic
pressure where reservoir pressures are not sufficient to
lift the hydrocarbons to the surface.
By reducing the density of the produced fluid column
and drawing down flowing bottomhole pressure, thus
encouraging reservoir liquids to enter the well bore at
higher flow rates, operators can enjoy improved well
performance. Gas lifts popularity also is often related to
its ability to handle gassy, sandy, and corrosive fluids in
deviated wells and its applicability to a wide range of
production rates.
Solution limitations
Todays solutions for gas lift come with limitations, however, particularly in regard to the information generated
and the often crude forms of intervention required. Monitoring gas-lifted wells, for example, is often limited to a
basic tick-box approach, focusing on wellhead pressure or
the occasional fluid level or downhole pressure reading.
The primary method of gas lift well completion still
depends on the use of side pocket mandrels, where wireline interventions are used to change injection depth
and make significant rate changes possible. Operators
have little information on pressures and temperatures at
the point of gas injection and limited control and flexibility over altering injection rates in real time.
The side pocket mandrels host either temperaturesensitive injection pressure-operated devices or a simple
orifice with fixed port size, both of which are prone to
unstable operation when annulus and/or tubing pressures change. This can lead to unloading valves higher
up the production tubing opening and injecting gas. It
also can lead to gas injection at the wrong point and
potential valve failure as most unloading valves are not
designed for continuous injection.
The lack of flexibility and control in gas lift has paved
the way for ESPs to grow in popularity in recent years,
and it is a real challenge for the gas lift community. It also
comes at a time where there is a wide range of conditions
and fluctuating flow rates and pressures in many fields,
especially those linked by complex gathering system networks. The wider range of process conditions increases
the need for greater control over injection rates.
Remote field locations, growing water cuts, and fastchanging reservoir and well characteristics are increasingly common in reservoir operations, and the previous
assumption that a well will operate with a specific reservoir pressure and flow at a specific rate and water cut is
simply not sustainable.
The APOLLO solution is in direct response to operators needs to
have access to variable operating valve combinations and make
decisions and modifications in real time without the need for
intervention. (Images courtesy of Camcon Oil)
70
ARTIFICIAL
LIFT
71
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Optimum production
There is more
to the story
READ MORE ONLINE
EPmag.com
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Impact on an
underperforming ESP
On another well, the automated ESP
diagnosis highlighted that the ESP
was underperforming by 30%. The
system recommended that the ESP
frequency could be safely increased
from 42 Hz to 46.7 Hz. The system
automatically showed that 46.7 Hz
was still not sufficient to achieve the
target drawdown because further
increases of frequency were limited
by the ESP pump range.
The bottomhole flowing pressure
stabilized at 1,267 psi. The target bottomhole flowing pressure for the well
was 1,131 psi, providing scope for an
additional 1,142 barrels of fluid. The
ESP installed was not capable of providing this additional flow rate, so it
was resized based on the recommendations of the real-time system. Drawdown was optimized to the target
bottomhole flowing pressure, and
the flow rate was increased.
An automated diagnosis and frequency optimization of the underperforming ESP provided an average
additional 200 b/d ($6.7 million) in
EPmag.com | March 2012
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75
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DEVELOPING UNCONVENTIONALS
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INTRODUCIN DUG'cANA
The newest event in
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I Montney, Cardium , Exshaw, Horn River, Duvernay and the Deep Basin
are among the major unconventional p lays operators are chasing in Western
.
Canada,
C
as many firms tilt their portfolios toward light oil and liquids-rich gas targets.
Canada also boasts unconventional resource i ichcs in th e rredcrtck Brook , (xrcen Poin t
and Utica shales. This panel will look at the depth and breadth of Canada 's new
unconventional p lays, including key geological and geophysical parameters.
Availability of cap ital and acreage can be constraints on activity and rising service costs are a concern.
Nonetheless, economics of the new-generation plays are robust. This panel investigates the metrics of the
Canadian unconventional p lays and hi g hli g hts the challenges and opportunities.
a
Hart Energy is
proud to introduce
our latest DUG Series
conference and exhibition . Together
with the Canadian Society for
Unconventional Resources (CSUR), we will bring the
latest insi g hts on ti g ht oil and gas resource plays to Calgary on June
18-20, 2012. Alongside spotli g hts by top operators in such p lays as the Montney, Cardium , Exshaw,
Duvernay and others, detailed panel discussions will delve into the economics, costs, technolog ies and market
opportunities for these exciting resource plays.
A minimal environmental footprint is a prime concern . Resource extraction must be accomplished while
protecting Canada ' s precious natural environment. lessons learned from earlier unconventional
developments across the continent are being app lied to the Canadian plays , which operate w i t h i n their
own unique regulatory framework. Best practices for pad drilling, water treatment and handling, and
h y draulic fracturing are hig hli g hted.
Developing export markets for Canada ' s abundance of natural gas reserves is a key theme. With the
entrance of overseas firms , a true international effort is underway to secure both Canadian reserves and
knowled ge. Efforts to construct and supp l y I.NG export terminals have the potential to remake the
d ynamics of the global gas market.
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UNCONVENTIONAL
MIDSTREAM
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UNCONVENTIONAL:
CANADA
UNCONVENTIONAL:
CANADA
Quebec
In the Utica shale formation extending into Quebec, development has slowed for a different reason. Companies such
as Talisman, Questerre Energy Corp., Gastem Inc., and Forest Oil Corp. have assembled strong land positions and
entered the early stages of exploration over the past few
years. But that budding activity came to a halt when the
Quebec government put an interim moratorium on fracing.
The government calls it a pause where efforts to
understand the effects of hydraulic fracturing can be
undertaken, Dawson said.
A decision is anticipated within two years. The level
of activity that follows will be determined in part by the
studys results but also by conditions in the North American natural gas market.
According to Dawson, properties producing from the
Utica shale in the Quebec lowlands are ideally situated to
feed gas into eastern Canada and US markets, and the volumes would command Nymex pricing rather than the lower
AECO value. Though attractive for that reason, the play is
very exploratory and lacks demonstrated commercial production. Talisman has had encouraging results from early
wells, but much science and exploration work remains.
of magnitude, but there are shale gas and CBM opportunities to be had, Dawson noted. Smaller companies are
exploring, but it is early days. Juniors wanting to develop
in this province will face headwinds from low commodity
prices and stakeholder relations issues.
Market considerations
Opinions vary as to where the natural gas market is heading. Optimists point to the lower number of dedicated gas
drilling rigs as an indicator of reduced production and
higher prices on the horizon. While this trend is significant, according to Dawson wells are being drilled faster
and with longer laterals, bringing more gas on stream with
less rig time required.
Others talk about the steep decline rates that shale gas
production faces, he said. While it is true that these types
of wells have steep early decline rates, it may not matter in
the overall project economics.
If a well in the Haynesville declines 70% to 80% in the
first year, as long as it pays out, I am not too concerned
about the decline.
Typically, the companies drilling these wells have a large
inventory of well locations.
Compression and other infrastructure costs are built
into infield well prices, resulting in the continued decline
of overall net finding and developing costs even in a
$3.50 to $4.50 price environment, he said.
Build in tight oil with associated gas as a byproduct, and
the potential for additional gas production into the North
American market is even greater.
Dawson also said without material changes to North
American gas demand, weak natural gas prices will persist.
Prices may be flat for a number of years until consolida-
Western
CANADA
Canadian
Manitoba
Sedimentary
Basin
Saskatchewan
British
Columbia
U.S.A.
Quebec
Ontario
Anticosti
Basin Maritimes
Basin
Appalachian
New Brunswick
Basin
Sydney
Basin
Nova
Utica
Scotia
Formation
79
UNCONVENTIONAL:
CANADA
19
80
FMC Technologies
more
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I
DEEPWATER
ADVANCES
Brainstorming session
Last year DNV with more than 65% of the worlds offshore pipelines designed and installed to its classification
standards gathered its young engineering talent for a
brainstorming session in Rio de Janeiro, Brazil, specifically to tackle this kind of challenge. The result was the
X-Stream concept, designed particularly with booming
areas such as Brazils presalt province, West Africa, the
US Gulf of Mexico, and Western Australia in mind.
DNV is a global provider of knowledge for identifying,
assessing, and managing risk, not an engineering or
construction house. As a result, it maintains the study
and solution are purely conceptual at this stage and will
need to go through basic and detailed design processes
before the concept can be undertaken on a real project.
But the company is introducing the idea within the
industry domain to spark feedback from both pipeline
ith new fields regularly being developed in ultradeep waters and increasingly remote locations,
long-distance export solutions for natural gas that cannot be flared are becoming project-critical. A new concept has been unveiled that could dramatically cut
pipeline construction and installation costs while also
representing a viable economic alternative to existing
transportation options such as floating LNG units.
According to DNV, its deepwater gas pipeline concept
could enable huge savings on the costs of constructing
and installing such lines by reducing the amount and
thickness of steel used without compromising pipeline
safety and integrity.
The X-Stream concept allows this reduction in
pipeline wall thickness by controlling the differential pressure, therefore reducing the
time currently spent on difficult welding and
installation work carried out on deepwater
gas pipelines. It also uses only established
and field-proven technologies.
State-of-the-art gas pipelines for deepwater
and remote locations generally have large
diameters and high external hydrostatic pressures that require thick walls to prevent them
from collapsing. This wall thickness, according to DNV, makes it extremely difficult to
produce, with only a limited number of pipe
mills capable and available to do such work
due to quality and safety requirements. The
heavy weight of these lines also makes their
handling and logistics difficult, while the
thick pipe walls are difficult to weld.
The DNV X-Stream solution maintains and controls the differential pressure
The pipes also require extremely thick and
using multiple i-HIPPS installations. The main i-HIPPS would be installed above
costly buckle arrestors, and by their nature
surface at each end of the pipeline, while two further secondary i-HIPPS would
they can only be laid by a limited number of
be installed on the seabed on either side of the main collapse-critical stretch
pipelay vessels with prohibitive day rates. For
of line. According to the company, this could be anywhere up to 1,200 km
example, for very large diameter pipelines
(around 32 in. to 36 in.), the cost is estimated (746 miles) in length, although the concept is focused primarily on a 400-km
(250-mile) case study. (Image courtesy of DNV)
at more than US $1 million/day.
82
There is more
to the story
READ MORE ONLINE
EPmag.com
contractors and oil and gas operators with the intention of
potentially working further in partnership with interested
parties to refine it, test it, and eventually hand over full control to them.
The exact reduction in the wall thickness of deepwater
pipelines will depend on the water depth, pipe diameter,
and actual pipeline profile.
ft
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PLORATION '
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INTERNATIONAL
or e-mail us at sales@mcpharinternational.
83
DEEPWATER
ADVANCES
Realistic simulation
The DeepWorks ROV pilot training simulator provided
by the Fugro Subsea Services Ltd. Robotic Technologies
division uses realistic simulation to mimic the hydrodynamic response, collision behavior, and physical vehicle
characteristics of different types of ROVs. It also exposes
the underlying hydraulic and electrical circuits so that different ROV types and tooling solutions can be realistically
simulated and fine-tuned.
The simulator brings full force-modeled physics simulation to subsea scenarios so ROVs and other movable subsea assets respond realistically to operator demands,
environmental forces, and friction. Touch and feel
84
DEEPWATER
ADVANCES
tech
WATCH
any industrial processes produce heat as a byproduct that is wasted due to the inability or lack of
equipment to capture and use this heat in a productive
manner. The oil and gas industry generates such heat at
a number of upstream and midstream locations, and that
heat can be captured and converted efficiently with
portable units.
Gas compression
The EIA lists more than 480,000 km (292,320 miles) of
pipeline throughout the Lower 48 states of the US. This
natural gas pipeline network relies on more than 1,200
natural gas compressor stations to maintain the continu-
86
tech
WATCH
oxygen to generate heat, CO2, and water as final byproducts. Some companies that already incinerate this waste
gas suggest a reduction in CO2 emissions of 7.6 tons/day
by venting to 1.0 tons/day for 99.99% combustion efficiency. Even at 80% efficiency the reduction is 2.3
tons/day of CO2. The heat can be captured through an
ORC system to generate usable electricity at the site of
incineration.
Gas incineration
Incineration is a process
involving the combustion
of various materials that
require destruction at
high temperature, such as
organic waste from hospitals. In the oil and gas
industry, a gas flare is often
used at an oil or gas production site to eliminate
waste gas that is otherwise not
feasible to use or transport. Rather
than the conventional flare system,
the waste gas can be combined with
87
tech
TRENDS
A remote gas well monitoring system has been developed by an NETL and university consortium research
partnership (NETL-RUA), which is funded by the US
Department of Energy (DOE), to help operators comply
with environmental requirements related to shale gas
extraction. The technology is currently undergoing field
trials at a Marcellus shale site in Washington County, Pa.
According to the DOE, the project is significant because
it streamlines a process to monitor shale gas wells at
remote drilling sites where the terrain and lack of nearby
power and phone lines make traditional monitoring difficult. The system comprises a series of wireless monitoring
modules used to measure volatile organic compounds,
dust, light, and sound. Each module consists of a radio
transceiver, a 12-volt battery-powered monitoring device,
and a battery. A 2-ft by 5-ft solar panel maintains the battery charge, and a base station module featuring a notebook-sized computer with a cell phone modem receives
the monitoring data, which can be accessed from a computer in another location. Fossil.energy.gov.
90
tech
TRENDS
The StabFrame template completed its first offshore pile installation operation in the Campos basin despite strong currents, estimated at times to be more than 2.5 knots. (Image courtesy of
Large Diameter Drilling Ltd.)
international
SPOTLIGHT
94
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REGIONAL REPORT:
WEST AFRICA
REGIONAL REPORT:
WEST AFRICA
Approximately 120 million years ago, Cobalts Kwanza basin blocks offshore Angola would have been around 80 km (50 miles) from
the Whale Park Complex in Brazils Campos basin and in the same depositional basin. (Map courtesy of Cobalt International Energy)
97
REGIONAL REPORT:
WEST AFRICA
In terms of infrastructure, subsea is the top expenditure item, with nearly $50 billion forecast to be spent
between 2007 and 2016, out of which more than $28 billion is expected to be invested between 2012 and 2016.
Spending on pipelines is not far behind at nearly $46
billion for the 10-year period from 2007, with a large proportion of that ($31 billion) forecast to be spent in the
2012-2016 period.
According to Infield, deep water will dominate the offshore picture. A capex total of $100 billion is forecast on
West African projects in more than 500 m (1,640 ft)
water depth over the 10-year period, with nearly $60
billion of that concentrated in the second five-year
period to 2016.
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Grand Total
Angola
7550
3853
1496
3680
8707
6815
8383
7188
7045
10186
64904
Nigeria
3752
4121
4621
1348
2336
2526
4408
3984
5762
8596
41454
Ghana
15
30
82
2007
422
580
1417
1988
1018
837
8397
Congo (Brazzaville)
973
933
367
400
92
626
1231
1589
712
1058
7981
Equatorial Guinea
71
80
133
277
939
1021
1211
1188
1003
1252
7175
Gabon
447
284
144
141
236
348
197
299
336
234
2666
15
110
319
197
64
19
367
584
1689
49
90
248
325
216
120
95
1229
158
573
731
25
131
21
37
219
Cameroon
15
Ivory Coast
84
Sierra Leone
Benin
D.R.Congo (Ex Zaire)
23
15
12,930
9,317
6,857
8,018
By Segment (US$m)
2007
2008
2009
2010
2011
Subsea Completion
5483
4432
4148
2380
Pipeline
3801
2044
915
3225
Platform
3030
2554
1719
388
212
47
Control Line
228
75
Grand Total
12,930
9,317
Grand Total
38
13,166 12,493
17,237
16,472
16,543
23,451
136,483
2012
2013
2014
2015
2016
Grand Total
5061
3019
6740
5752
4881
8071
49967
4935
5678
5716
5359
5557
8696
45925
2123
2738
3425
4088
4783
5312
5788
35561
148
228
102
358
331
562
512
2888
27
142
203
268
336
247
231
384
2141
6,857
8,018
17,237
16,472
16,543
23,451
136,483
13,166 12,493
98
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99
international
HIGHLIGHTS
For additional
information on
these projects
and other global
developments:
EPmag.com
Africa
Europe/Russia
Ukraine well starts producing at more than 1.5 MMcf/d
Kulczyk Oil Ventures has confirmed that its partially
owned subsidiary KUB-Gas LLC has started commercial
production from the Olgovskoye-6 (O-6) well in Ukraine
at a rate of more than 1.5 MMcf/d, increasing total field
production to more than 18.5 MMcf/d (13 MMcf/d net).
Meanwhile, the O-8 well, which was fraced after O-6, is
expected to begin producing in March.
Barents Sea 3-D multiclient EM campaign begins
EMGS has begun a multiclient 3-D electromagnetic campaign in the Barents Sea ahead of Norways 22nd exploration licensing round. Data acquisition will begin in
March using the Atlantic Guardian vessel. Preliminary data
deliverables will be available from April 2012, and 3-D
inverted data will be available May 2012.
RWE Dea spins bit at Clipper South
RWE Dea UK has spudded the first development well
for the Clipper South gas field in Blocks 48/19 and 48/20
on the UK Continental Shelf. The #48/19a-C1 well is targeting a tight Permian-age Rotliegend reservoir at a depth
of 2,500 m (8,250 ft) and is the first of up to five extended
horizontal wells with multiple hydraulic fractures. The
field contains approximately 500 Bcf of gas in place, and
production is expected in summer 2012.
Asia/Pacific Rim
Santos turns on taps at Indonesia gas field
Santos has started gas production from the Wortel project
100
international
HIGHLIGHTS
South America
Total divests onshore Colombia assets
Sinochem has agreed to acquire TEPMA, a fully owned
affiliate of Total, which holds a working interest in the
Cusiana field as well as participation in the OAM and
ODC pipelines in Colombia, for $1 billion. Totals share
of production in Cusiana is approximately 7,000 boe/d.
In Colombia, the company retains a 55% interest in the
Mundo Nuevo block, a 50% interest in the Niscota block,
and a 5.2% share in the Ocensa pipeline.
Franco Northwest proves additional oil reserves
Petrobras has confirmed the extension of oil reserves
northwest of the Franco discovery well in the Santos basin
presalt area offshore Brazil. The #3-BRSA-944A-RJS (#3RJS-688A) well, which was drilled in 1,860 m (6,138 ft)
water depth, encountered 28API oil samples from 5,460
m (18,018 ft).
Hydrocarbon find may confirm new Solimes cluster
Petrobras has discovered oil and natural gas at the 1BRSA-961-AM well in the Solimes basin on Block SOL-T171 in Amazonas state onshore Brazil. The well Igarap
Chibata Leste was drilled to a final depth of 3,295 m
(10,873 ft). Tests indicate production capacity of 1,400
b/d of good quality oil (41API) and 1.6 MMcf of gas in
the Juru formation.
North America
Kitimat LNG project moves ahead
The National Board of Canada has approved an application
by BC LNG Export Cooperative LLC for a license to export
36 million metric tons (MMmt/y) of LNG per year from
Kitimat, British Columbia, primarily to Asian markets over a
EPmag.com | March 2012
Middle East
Iran suspends oil exports to UK, France
At press time, Iranian Oil Minister Rostam Qassemi was
calling on European member states to make a final decision on oil imports from Iran following their decision to
impose strict sanctions against the country, including freezing its central back assets and planning an oil embargo for
July. In response, Iran has imposed a ban on oil exports to
Britain and France. The 27-nation EU accounts for approximately 18% of Irans oil exports.
Gulf Keystone completes Shaikan well tests
Gulf Keystone Petroleum has completed the testing program for its appraisal well #2-Shaikan in the Kurdistan
Region of Iraq. Following an August 2011 Triassic discovery in the Kurre Chine C zone, the company conducted nine well tests that targeted the Triassic and
Jurassic, with a maximum aggregate flow rate of 18,900
b/d. Shaikan has gross oil-in-place volumes of 8 MMbbl
to 13.4 MMbbl, with a mean value of 10.5 Bbbl.
Noble strikes gas at Tanin prospect
Noble Energy has discovered natural gas at its Tanin
prospect in the Alon A license, the companys sixth consecutive hydrocarbon find in the Levant basin offshore Israel.
The well was drilled to 5,551 m (18,212 ft) TD in 1,555 m
(5,100 ft) water depth and encountered 40 m (130 ft) of
gross gas pay in high-quality Lower Miocene sands.
101
on the
MOVE
People
dent of the Field of the Future Flagship Program at BP, as vice chair of
the board.
Correction
On page 84 of our February issue, this chart appeared with incorrect information.
The corrected chart is shown below. E&P regrets the error.
Average cumulative production versus time charts on Viking horizontal wells at Harmattan East/ Crossfield East in
Alberta, Canada, illustrate how GasFrac has performed favorably compared to offset production wells. (Chart courtesy
of GasFrac)
102
E P,
on the
MOVE
Group Publisher
RUSSELL LAAS
Tel: 713-260-6447
rlaas@hartenergy.com
Associate Publisher
DARRIN WEST
Tel: 713-260-6449
dwest@hartenergy.com
United States
Canada / Latin America
1616 S. Voss Road, Suite 1000
Houston, Texas 77057 USA
Tel: 713-260-6400
Toll Free: 800-874-2544
Fax: 713-627-2546
Bjrn Jalving has been named executive vice president, Subsea, at Kongsberg Maritime and a member of
the companys management group,
replacing Rolf Arne Klepaker, who
is now working with strategic projects
at the company.
James Tuppen has joined
Wild Well Control as manager, International Well
Control Operations.
Expansions
DNV has launched a Deepwater
Technology Center in Singapore.
TAM International has set up its first
Latin American regional office in
Bogota, Colombia.
Cactus Wellhead has constructed two
new facilities, one in the Haynesville/
Sales Manager
Eastern Hemisphere
DAVID HOGGARTH
Tel: 44 (0) 7930 380782
Fax: 44 (0) 1276 482806
dhoggarth@hartenergy.com
Advertising Coordinator
CAROL NUNEZ
Tel: 713-260-6408
cnunez@hartenergy.com
Subscription Services
E&P
1616 S Voss Road, Suite 1000
Houston, Texas 77057
Tel: 713-260-6442
Fax: 713-840-1449
custserv@hartenergy.com
List Sales
MICHAEL AURIEMMA
Venture Direct
212.655.5130 phone
212.655.5280 fax
mauriemma@ven.com
ADVERTISER INDEX
Allmand . . . . . . . . . . . . . . . . . . . . . . . . 58
Baker Hughes Incorporated . . . . . . . . 27
Cameron . . . . . . . . . . . . . . . . . . 35, 37, 39
Checkers Industrial Safety Products . 99
CNPC Greatwall Drilling Co. . . . . . . . 69
Dearing Compressor . . . . . . . . . . . . . . 75
Dragon Products, Ltd. . . . . . . . . . . . . . 17
E&P . . . . . . . . . . . . . . . . . . . . . . 76, 88, 92
EAGE . . . . . . . . . . . . . . . . . . . . . . . . . . 59
FMC . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Forum Technologies . . . . . . . . . . . . . . 19
Frontier Wellhead . . . . . . . . . . . . . . . . . 65
Fugro Jason . . . . . . . . . . . . . . . . . . . . . . 79
Halliburton . . . . . . . . . . . . . . . . . . . . 4, 43
ION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
J&J Truck Bodies & Trailers . . . . . . . . . 15
John Crane Production Solutions Inc . . 9
McPhar International . . . . . . . . . . . . . . 83
Mewbourne College
of Earth & Energy . . . . . . . . . . . . . . . . . 7
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . 2
ModuSpec . . . . . . . . . . . . . . . . . . . . . . 64
Momentive . . . . . . . . . . . . . . . . . . . . . . 73
National Oilwell Varco . . . . . . IFC, 13, 49
Nauchers Alpine . . . . . . . . . . . . . . . . . 68
Newpark Drilling Fluids . . . . . . . . . . . 30
Oilfield Improvements . . . . . . . . . . . . 11
P2 Energy Solutions . . . . . . . . . . . . . . . 51
PGS Exploration (UK) Ltd. . . . . . . . 28, 53
R360 . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Reed Exhibitions/
SPE Intelligent Energy . . . . . . . . . . . . 26
Rockwater Energy Solutions . . . . . . . . 63
Schlumberger . . . . . . . . . . . . . . . . . 3, BC
Society of Exploration Geophysicists 95
Society of Petroleum Engineers . . . . . 72
Spacecom . . . . . . . . . . . . . . . . . . . . . . . 16
TAM International . . . . . . . . . . . . . . . . 22
Tendeka . . . . . . . . . . . . . . . . . . . . . . . . 45
Tetra Technologies . . . . . . . . . . . . . . IBC
TGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
V&M . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Varel International . . . . . . . . . . . . . . . . 41
Weatherford International, Ltd. . . . 24, 25
GEA Westfalia Separator
Group GmbH . . . . . . . . . . . . . . . . . . . 21
Zeeco . . . . . . . . . . . . . . . . . . . . . . . . . . 12
103
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