AUGUST 2018 / DEFINING CONVENTIONAL, SHALE AND OFFSHORE TECHNOLOGY FOR OIL AND GAS / WorldOil.

com

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WEST AFRICA
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 CONTENTS
AUGUST 2018 / VOL. 239 NO. 8

9 78

43

SPECIAL FOCUS: DRILL PIPE COLUMNS

PERMIAN BASIN 65 Fourth-generation drill pipe 7 First oil
connection enhances Consent given to fracing first
TECHNOLOGY onshore, horizontal well in the UK
land drilling, reduces pipe
29 Permian basin leads the pack 13 Energy issues
maintenance
T. Harris A mixed bag
G. Plessis / A. Muradov
37 Perforating system D. Morgan / S. Forrester 15 What’s new in exploration
improves stimulation results J. Dugas / B. White A.I. is just that, artificial—
don’t make it a deity
in unconventional completions
HSE - WELL CAPPING 17 Drilling advances
A. Dyess
Sensing doubts
43 New frac-pack additive is step 69 Precise prediction of
hydrocarbon burn efficiency 19 What’s new in production
change in sulfide scale control Into the weeds
for Permian long horizontals is now possible
21 Executive viewpoint
C. Okocha A. Cuthbert
Using A.I. to enhance daily
operations
PERMIAN BASIS: ANALYSIS DIGITAL TRANSFORMATION/
23 Innovative thinkers
OFFSHORE PRACTICES Philippe Herve: Guiding the point
48 Permian oil production
73 Maintaining asset integrity of sail for AI in oil and gas
requires additional pipeline
infrastructure during hurricane season 94 The last barrel
D. Renzi Entrepreneurial spirit
Energy Web Atlas / World Oil Staff

REGIONAL REPORT: NEWS AND RESOURCES

SHALETECH REPORT /
PRACTICES & ADVANCES
53 Enhanced understanding
improves “child well”
performance
G. Lindsay / G. Miller /
T. Xu / D. Shan / J. Baihly
59 Copper alloy coupling reduces
rod failures, boosts well
efficiency
C. Curran / D. Nielsen /
W. Nielsen / R. Cash
WEST AFRICA
78 Intending to be a global
supplier, the region endures
output disruptions
E. Querubin
DEEPWATER/SUBSEA
83 Operators and service firms
collaborate through ground-
breaking subsea technology
D. Lawson
9 World of oil and gas
25 Industry at a glance
88 People in the industry
89 Companies in the news
90 New products and services
91 Advertisers’ index
92 Marketplace /
Advertising sales offices
93 Meetings and events
ABOUT THE COVER
In January 2018, a PropStream last mile
proppant logistics service truck secures frac
sand from the Hi-Crush Pecos transload
facility. The sand is for delivery to a wellsite in
the southern Delaware basin of the Permian
region of West Texas. Photo: Hi-Crush.

World Oil® / AUGUST 2018 3


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4 AUGUST 2018 / WorldOil.com
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PUBLISHER Andy McDowell
EDITORIAL
Editor Kurt Abraham
Technical Editor Craig Fleming
Associate Editor Emily Querubin
News Editor Michele Cowart
Contributing Editors
Dr. A. F. Alhajji, Middle East Dr. Jeffrey M. Moore, Asia-Pacific
Dr. Roger Bezdek, Washington Mauro Nogarin, Latin America
Ron Bitto, Offshore Dr. Øystein Noreng, North Sea
David Blackmon, Reg. Affairs Mark Patton, Water Management
Robert Curran, Canada Dr. William J. Pike, Energy Issues
Bill Head, Exploration Jim Redden, Drilling
Don Francis, Production Dr. Jacques Sapir, FSU
Raj Kanwar, South Asia Mike Slaton, At Large
Saeid Mokhatab, LNG Russell Wright, At Large
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Chairman—Dr. William J. Pike, Principal Scientist, KeyLogic, Inc., and Contractor
to the National Energy Technology Laboratory, U.S. Department of Energy
Ben Bloys, Manager, Los Alamos Technology Alliance, Chevron
Dr. DeAnn Craig, Consultant
Dan Domeracki, Vice President, Government and Industry Relations, Schlumberger,
and Chairman, Petroleum Equipment and Services Association
Deepak M. Gala, SME, Well Control Engineering and Relief Well Planning, Shell
John Gellert, CEO, SEACOR Marine Holdings, and Chairman, National Ocean
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Alexander G. Kemp, Professor of Petroleum Economics, and Director, Aberdeen Centre
for Research in Energy Economics and Finance, University of Aberdeen
Trent Latshaw, President, Latshaw Drilling Co. LLC, and member,
IADC Executive Committee
Keith Lynch, Wells Operations Advisor—Unconventional Assets, ConocoPhillips
Dr. D. Nathan Meehan, Vice President, BHGE, and Managing Director,
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David A. Pursell, Senior Vice President, Planning and Energy Fundamentals,
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Art J. Schroeder, Jr., CEO, Energy Valley, Inc.
Svein Tollefsen, Manager, Reservoir Technology, Equinor ASA
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Consent given to fracing first onshore,
horizontal well in the UK
Ever so quietly, a significant mile-
stone for the UK’s E&P industry has been
reached. We refer to the UK Department
for Business, Energy & Industrial Safety
(BEIS) giving consent to shale gas devel-
oper Cuadrilla Resources, to become the
first operator in Britain to frac an onshore,
horizontal exploration well. Hydraulic
fracturing consent was introduced into
the government’s processes in 2015.
The BEIS gave its approval on July
24 for Cuadrilla to frac the first shale gas
well at its Preston New Road site in Lan-
cashire, in northwestern England. “I have
carefully considered Cuadrilla’s applica-
tion, and I am content that hydraulic frac-
turing consent should be granted in this
instance,” said Energy and Clean Growth
Minister Claire Perry in a statement. The
company is now preparing to apply for
consent to frac its second well at that site.
Cuadrilla was thrilled. “We are very
pleased to be the first operator in the UK
to have been awarded final consent to hy-
draulically fracture the UK’s first onshore
horizontal shale exploration well,” said
Cuadrilla CEO Francis Egan. He noted
that “it is also a win for Lancashire, which
has already benefitted directly from over
£10 million of investment, as a result of
our exploration works…...”
Cuadrilla completed the first well dur-
ing April in the Lower Bowland shale
at a 2,300-m depth, with an 800-m lat-
eral. The second well was completed last
month through the Upper Bowland, to
about 2,100 m with a 750-m lateral.
URTeC was red-hot. Congratula-
tions to URTeC and its exhibition for a
very successful event in Houston, while
achieving greatly increased attendance.
At the end of the second day, attendance
was up to 5,528, almost double the 2017
number in Austin. In fact, attendance
at technical sessions and panels was so
strong, that many had standing room
only, with people lining the walls and
falling out the doorways. Show officials
scurried to switch some sessions to
rooms with more capacity.
FIRST OIL
KURT ABRAHAM, EDITOR
But this is a good problem to have, and
clear evidence of two things. One, the
U.S. upstream industry, particularly the
onshore shale sector, is definitely on the
mend, and many personnel are hungry
for more information and technology to
work with. And two, the content of the
sessions was high-quality, as has been the
case every year for URTeC. The show will
return to Denver in 2019.
Now, we’ve seen everything, A long-
time industry friend sent me an email last
month with a link, saying, “you won’t
believe this.” He was right. In the July 23
edition of The Daily Caller, was a story en-
titled, “Study links fracking to higher rates
of sexually transmitted diseases (STDs).”
Extremists have blamed fracing for a lot of
things, but this was really in left field.
It seems that researchers at the Yale
Public School of Health, with obvious time
on their hands, believed that increased
fracing in Ohio might be generating higher
rates of STDs. Indeed, Yale researchers
now claim to have found that cases of two
specific STDs increased about 20% in nine
Ohio counties with high shale develop-
ment. Lead study author Nicole Deziel
contends that out-of-state workers are fre-
quently brought in because of specialized
skills (fracing, in this case). She says they
are mostly single, straight men, who bring
along “masculinized social norms,” as they
work at well sites in rural areas.
Accordingly, she contends that these
men are having more casual sex with the
locals, thus raising the STD rate. Various
medical experts have serious problems
with this study, pointing out that STD
rates were rising in Ohio before fracing was
introduced to the state. “It doesn’t have
anything to do with the shale gas industry
directly, but it does have to do with popu-
lation growth,” said Dr. Charlotte Gaydos,
an STD expert at Johns Hopkins Univer-
sity, in a statement quoted by the Columbus
Dispatch. “It makes sense, anytime there’s
an activity in the area, which increases the
influx of the migration of a population, that
it might be associated.”
IN THIS ISSUE
29 Permian basin technology:
Advances propel the re-
gion forward. Articles in this section
describe technology geared specifically
to the Permian. Accordingly, on page 29,
a Packers Plus author describes how in-
novative completion technology is reduc-
ing break-even prices for operators. On
page 37, an author from Hunting’s Titan
Division explains how a perforating sys-
tem improves stimulation results in un-
conventional completions. Also, on page
43, a Clariant Oil Services author details
how a new frac-pack additive is improving
sulfide scale control for long horizontals.
53 ShaleTech Practices: Filling
the gaps in understanding
well performance. As the U.S. shale
boom nears 15 years, operators are shift-
ing strategies to the next phase of de-
velopment, infill drilling, which presents
its own challenges. Accordingly, Schlum-
berger conducted a 10-basin study that
compared child and parent well perfor-
mance in unconventional plays. Several
authors from the company explain how
experts are working on technologies and
best practices that mitigate the effects of
depletion and inter-well communication
on child well performance.
78 West Africa intends to be
a global supplier, but the
region endures output disruptions.
As described by Associate Editor Emily
Querubin, the region’s two top produc-
ers, Nigeria and Angola, are struggling
with militant disruptions and underper-
formance by their E&P sectors. Neverthe-
less, the region’s energy sector continues
toward becoming a leading global oil and
gas supplier. Nearly $194 billion will be
spent on developing African oil and gas
fields between 2018 and 2025.
ŝŝKURT.ABRAHAM@WORLDOIL.COM
World Oil® / AUGUST 2018 7
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 WORLD OF OIL AND GAS
EMILY QUERUBIN, ASSOCIATE EDITOR

DISCOVERIES & DEVELOPMENTS ///////////////////////////////////////////////////////////

Petro River discovers Arsaga field, its largest find to date Eni reports its
After successfully drilling the Arsaga 25-2 exploration well, Petro River Oil Corp. announced the discovery of
second discovery
its largest oil field to date. The well, situated in Osage County, Okla., was the first of three exploration wells in Egypt’s Faghur
to be drilled under the company’s 2018 drilling program. It was spudded in early July, reaching a depth of basin
approximately 2,750 ft. Preliminary results showed about 30 ft of productive Mississippian Chat formation,
After drilling its second well to
which led to an estimated ultimate recovery of about 50,655 boed. “The discovery in the Arsaga field has
explore the deep geological
given the company continued confidence in our ability to effectively use 3D seismic imaging technology to sequences of the Faghur basin, Eni
discover overlooked prospects. The development of the Arsaga field, with approximately 2,000 prospective reported another light oil discovery
acres and up to 100 well locations, will be the focus of our activity for the next couple of years,” Petro River in the Western Desert’s South West
President Stephen Brunner said in a release. Meleiha License, approximately
80 north of Siwa. SWM B1-X was
Exxon increases resource estimate drilled to a TD of about 14,839 ft,
approximately 4 mi from the first
for Guyana’s Stabroek Block find, and encountered nearly 115
ft, net, of light oil in the Paleozoic
ExxonMobil Corp. increased its estimate of discovered recoverable resources for the Stabroek Block,
sandstones of the Dessouky forma-
offshore Guyana. Following completion of testing at the Liza-5 appraisal well; the Ranger discovery;
tion, of Carboniferous age, and in
incorporation of the eighth discovery, Longtail, into the Turbot area evaluation; and completion of the the Alam El Bueib sandstones, of
Pacora discovery evaluation; the company revised its resource estimate for the block, from 3.2 Bboe to 4 Cretaceous age. The company says
Bboe. The Liza-5 well tested the northern part of Liza field, and will support a third phase of development that it plans to drill several other
in Guyana, alongside the giant Payara field. Likewise, the Longtail well established the Turbot-Longtail area prospects nearby, in the hopes of
as a potential development hub for recovery of more than 500 MMboe. Drilling of additional prospects uncovering more resources and
in the area reportedly could further increase that estimate. According to the company, discoveries within opening up a new productive area
the 6.6-million-acre Stabroek Block have established the potential for up to five FPSOs, producing over for Eni. International Egyptian Oil
750,000 bopd by 2025. Exxon’s affiliate, Esso E&P Guyana Limited, is operator of the block, with a 45% Company (IEOC), a subsidiary
interest. Its partners include Hess Guyana Exploration Ltd. (30%) and CNOOC Nexen Petroleum Guyana of Eni, holds a 100% stake in the
Limited (25%). South West Meleiha License.

PRODUCTION /////////////////////////////////////////////////////////////////////////////
Production begins DNO ramps up production at Peshkabir field, in Iraq
at Australia’s Ichthys After announcing an output increase last month, DNO ASA exceeded its 30,000-bopd target at Peshkabir field,
LNG project in the Kurdistan region of Iraq. The company initially reported that it would boost the field’s production rate by
two-thirds, to at least 25,000 bopd, following completion of its Peshkabir-4 well testing program. “The pickup in
Peshkabir production puts new meaning to the fast in fast-track in development of this field by the DNO team,”
Bijan Mossavar-Rahmani, DNO’s executive chairman, said in a release. “And we expect Peshkabir to continue to
surprise to the upside.” By the end of July, the field reportedly was producing approximately 35,000 bopd. Two
more wells, Peshkabir-6 and Peshkabir-7, are scheduled to start production testing in August. “Peshkabir has
now leapfrogged into second place, after Tawke, among the Kurdistan fields operated by the international oil
companies,” Rahmani said. “We are setting our sights on higher production and accelerating field development.”

Total starts production at Kaombo field, offshore Angola

INPEX Corp. (operator, 62.245%)—
alongside partners Total (30%),
CPC Corp. (2.625%), Tokyo Gas
(1.575%), Osaka Gas (1.2%), Kansai
Electric Power (1.2%), JERA
(0.735%) and Toho Gas (0.42%)—
started production at its Ichthys
LNG project, offshore Western
Australia. Produced gas will be
gathered at the Central Processing
Facility, Ichthys Explorer (pictured),
and separated. Liquids are then
piped to the nearby Ichthys
Venturer FPSO, while gases are
transported via pipeline to an
onshore gas liquefaction plant
in Darwin, Northern Territory.
The development will produce
approximately 8.9 million tons of
LNG and about 1.65 million tons
of liquefied petroleum gas per
year. Additionally, it will produce
approximately 100,000 bbl of
condensate per day at peak.
Image: INPEX Corp.
Total has announced the start
of production at Kaombo field,
Angola’s largest offshore develop-
ment. The field, situated in Block
32, will produce via the Kaombo
Norte and Kaombo Sul FPSOs.
The Kaombo Norte FPSO went
onstream in July and will produce
an estimated 115,000 bopd. The
Kaombo Sul FPSO is not scheduled
to go online until next year. The
FPSOs will develop the resources of
Gengibre, Gindungo, Caril, Canela,
Mostarda and Louro fields, which
cover an area of 800 km2 in the
south-central part of the block.
Overall production from both
FPSOs is anticipated to reach an estimated 230,000 bopd. “The Kaombo start-up is a great milestone for Total.
Developing the estimated 650 MMbbl of reserves will contribute to [our] growing production and cash flow in
Africa,” Arnaud Breuillac, Total’s president of E&P, said in a release. “Total is proud to build on its deep offshore
expertise to operate the latest major project coming on stream in Angola, which will account for 15% of the coun-
try’s oil production.” Total is operator of Block 32, with a 30% participating interest. Its partners include Sonangol
P&P (30%), Sonangol Sinopec International 32 Limited (20%), Esso Exploration & Production Angola (Overseas)
Limited (15%) and Galp Energia Overseas Block 32 BV (5%). Image: ALP Maritime Services BV.

World Oil® / AUGUST 2018 9

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WORLD OF OIL AND GAS


 


EMILY QUERUBIN, ASSOCIATE EDITOR
 

BUSINESS //////////////////////////////////////////////////




 


An exclusive
Total acquires BP acquires U.S. onshore assets
Engie’s LNG from BHP Billiton for $10.5 billion 

business
‚€


Permian
for $1.5 billion  


… 

Total has acquired Engie’s €   



Basin Map
upstream LNG assets, includ-
ing participating interests in   ƒ

liquefaction plants, long-term  

LNG sales and purchase agree- 

ments, and an LNG tanker fleet,

as well as access to regasification   2 nd
Edition


capacities in Europe. Among the

acquired assets is interest in the
 
Cameron LNG  project, in south-
€ 
  
western 
 Louisiana, as well as 18


LNG
 carriers and a global LNG
 
 
trading contracts portfolio of 28

million tons/yr. “This transaction BP has agreed to buy BHP Billiton’s assets in the Permian,
makes Total the second-largest Eagle Ford and Haynesville basins, as BHP exits the U.S.
global LNG player among the shale sector. The $10.5-billion acquisition represents the oil
€

majors, with worldwide market major’s biggest purchase in nearly two decades. Presently,


share of 10%, and the group will the assets are producing 190,000 boed, 45% of which are 
 

 
manage an overall LNG portfolio liquid  
hydrocarbons, and cover 470,000 acres across Texas
of around 40 million tons/yr by and Louisiana. The acreage is said to hold 4.6 Bboe of 

2020. It also helps us to build a discovered resources, overall. BP upstream Chief Executive   
position in the U.S. LNG market, Bernard Looney said, “We’ve just got access to some of the 
€…
 

best acreage 

… 
with the 16.6% stake in the in some of the best basins in the onshore U.S.,
Cameron LNG project,” said Total and I think we have one of the best teams in the industry to
CEO Patrick Pouyanne. work it.” Image: BP.
 
­

 ˆ


 


Chesapeake Energy announces $2-billion divestiture 

 €


of Ohio shale assets ­€   

Chesapeake Energy has agreed to sell its Utica shale assets in Ohio to Encino Acquisition Partners

 
for $2 billion. It is CEO Doug Lawler’s biggest transaction in more than three years. According   ƒ
‚
to the company, nearly all proceeds from the transaction will be used to pay down debt.
Additionally, however, the transaction will aid the company in its efforts to focus its business more
„
on the production of crude oil. Lawler reportedly is aiming to boost the company’s oil produc- 

­

tion by 10%, primarily through output growth in Wyoming’s Powder River basin. According to a
 
company statement, output from the area is expected to more than double in the next year. “The
‚   

Utica was the best asset for us to divest of, and what we have remaining in our portfolio is five
 
very strong assets for future growth,” Lawler said. 
 


  

Aker BP acquires license portfolio from Total …   

‚ƒ

for $205 million … 

„€ 
Aker BP has agreed to acquire
interest in Total’s portfolio of
… ƒ
 11 licenses on 
 the Norwegian
 Continental Shelf (NCS). The
€ƒ

 $205-million acquisition includes


 four discoveries—Trell, Trine, Alve
Nord and Rind—with reported
net recoverable resources of 83
MMboe. Because they are near
Aker BP’s Alvheim field, Trell and ORDER YOUR




Trine are expected to produce

 
through the Alvheim FPSO MAP TODAY:


(pictured). Likewise, the Alve Nord
discovery is situated just north of
Aker BP’s Skarv field and, there-
GulfPub.com/Permian
fore, it can be produced through



the Skarv FPSO, in the northern area of the Norwegian Sea. In addition to the four discoveries, the







transaction also gives the company increased interest in exploration acreage near its Ula field, in




the southern section of the Norwegian North Sea. Image: Aker BP.

World Oil® / AUGUST 2018 11


 

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DR. WILLIAM J. PIKE, EDITORIAL ADVISORY BOARD CHAIRMAN
A mixed bag
Did you ever have one of those months
when everything you read seemed to com-
pound the other things you read? Well, it
has been one of those months for me. And,
a lot of what I have read seems to indicate
that no one has a clear vision of what might
be about to happen. On the other hand, as
discussed below, well-reasoned plans can
mitigate a good deal of the uncertainty.
Take these comments from a recent is-
sue of the Houston Chronicle, for example.
“OPEC could bring back 1 million barrels a
day, but any barrels brought back by Saudi,
Russia, Kuwait might just offset barrels lost
from Iranian sanctions,” said Noah Barrett,
an energy research analyst at Janus Hender-
son Investors (http://digital.olivesoftware.
com/Olive/ODN/HoustonChronicle/
Default.aspx). Due to bottlenecks in the
Permian Basin, “U.S. production will con-
tinue to grow, but it probably won’t exceed
expectations. It’s more likely it will disap-
point to the downside.” And, said Ashley
Petersen, lead oil analyst at Stratas Advi-
sors in New York, “there’s just kind of an
acknowledgment that there is still a lot of
supply in Texas, so it’s not clear sailing for
prices.” According to John Kilduff, a part-
ner at New York-based hedge fund Again
Capital, “the summer-time doldrums are
here and there’s not a lot of direction for
this market at the moment.”
The market uncertainty is compound-
ed by additional factors, such as Venezu-
ela’s continuing oil collapse (You can call
that a collapse of the whole country. A
cup of coffee in Venezuela costs 2,000,000
Bolivars [yes, two million] at the time this
was written) and actions such as Mexico’s
announcement that they intend to in-
crease production by 600,000 bopd in two
years. The move in Mexico is an effort to
reverse a decline in production of nearly 2
MMbopd since 2005, with an investment
estimated at some $9.5 billion.
Yeah, it’s a crazy world. It’s hard to
figure out where to go. So, why not start
with what you have. First, protect your
assets. Then, build on them with a life
extension plan.
ENERGY ISSUES
At its core, a life extension (LE) plan
is a management system that provides as-
surance that an aging asset can continue to
operate safely beyond the original design
limits. This may, or may not, include the
necessity for repairs or upgrades to address
fabric degradation and/or manage risks. A
life extension plan summary was recently
published by Endeavor Management, a
company that designs and implements
practical business strategies. The plan
would, at a minimum, include a summary
of present condition, a strategy to monitor
pertinent aspects of the facility to continu-
ally verify fitness for service and compli-
ance with regulations and, ideally, baseline
contingency plans to mitigate credible risks.
Challenges. The challenges of life
extension, said Endeavor, fall into four
categories—safety, codes, technical and
business. All four must be addressed, for a
feasible life-extension program to exist:
• SAFETY is at the core of business
culture and must be considered at the
outset of a LE program.
• CODES AND STANDARDS. It is
not expected that the asset will fully
comply with codes and standards in
place at the time of the LE review. The
expectation must be that the risks as-
sociated with not meeting the latest
codes and standards are assessed, and
identified risks managed.
• TECHNICAL CHALLENGES. The
more reliable and comprehensive that
the data are, the better will be the as-
sessment. Generally, the challenges
can be broken down into the follow-
ing seven categories:
◦ Uncertain condition of critical
components and equipment
◦ Decaying corrosion protection sys-
tems
◦ Challenges complying with new
regulations
◦ Weight management
◦ Lack of historical data
◦ Change of use and/or location
◦ Predicting/extrapolating corrosion
and fatigue.
• BUSINESS IMPACTS. This would
include both short and long-term im-
pacts of the LE plan. Factors typically
considered include:
◦ Plan development: There will be
desktop studies and, if necessary, site
surveys to develop the documents
that confirm that LE is achievable.
◦ Upgrades and repairs: Some form
of work on the facility is required to
sustain or support the LE. Examples
of this are renewing corrosion pro-
tection systems, strengthening or
replacing corroded steel, or install-
ing monitoring systems.
◦ Periodic surveys: Extent and fre-
quency of periodic surveys may be
changed, as dictated by regulators.
◦ Production interruptions: Items
(2) and (3) above may require shut-
ting in, or at least disrupting, pro-
duction. The extent, timing, dura-
tion and frequency of this needs to
be estimated.
Implementation. At the end of origi-
nal life, the decision would be made to
consider extending the operational life and
this is the trigger to start the stepwise ap-
proach to determining the viability of LE.
If followed through to extend the operating
life, the stages are like those for a new asset:
assess, implement, operate and verify.
This systematic approach allows an as-
set life to be extended incrementally, pro-
visionally at five-year to 10-year intervals.
There would be periodic reassessment
and “course corrections” made as the asset
matures, and additional performance data
are gathered and assessed. These “course
corrections” may be purely business- or
regulation-driven, but can include as-
pects, such as changes in operations.
For access to all three portions of this
LE analysis, visit (https://www.endeavor-
mgmt.com/blog/life-extension-offshore-
floating-assets-part-1.)
ŝŝPIKE.WILLIAM@ATT.NET / Bill Pike has 50 years’ experience
in the upstream oil and gas industry, and serves as chairman of the
World Oil Editorial Advisory Board.
World Oil® / AUGUST 2018 13
 WHAT’S NEW IN EXPLORATION
WILLIAM (BILL) HEAD, CONTRIBUTING EDITOR

A.I. is just that, artificial—

don’t make it a deity
Also known as cognitive computing, ar- holes in a row. No longer does Exxon or project pioneered an AI effort, using gi-
tificial intelligence (AI) is often spoken of others assign new hires to the field, then a gabytes in a predictive neurologic solu-
as the nirvana of processing mass detailed year in processing, then to interpretation. tion scheme to derive dynamic engineer-
information, in a faster, better, cheaper way. So, are we morphing a new E-child from ing data [fluid flow parameters] from 3D
True. But exploration is not done in a room AI software? seismic. This was an attempt to develop a
full of random actors. AI cannot replace All is not despair. ConocoPhillips reservoir production tool for EOR, to find
deductive reasoning, the true power of an uses widespread, but people-driven AI. economically attractive clone prospects,
explorationist—being able to jump to a I see other companies swinging back to and to evaluate M&A possibilities, Fig. 1.
reasonable, low-risk, complex conclusion including math geophysicists, along with Marathon and partners provided licensed
without all the needed data. geologists, petrophysicists, and reservoir 3D data and well control over the GOM
Neuro-logic definitions include ev- fluids engineers, as a team, training AI Lobster field. Lobster is a classic dipping
erything from Siri, autos and airplanes, to computing cycles. turbidite reservoir that has complex layers
Japanese toilets. SPE declares [April 2018] SEG’s June Leading Edge discusses ma- of deposition. Maybe we could have cho-
that 94% of execs will use AI for production chine learning with petrophysics results. sen a simpler field to model.
control and decisions. Neuro is never bet- It’s useful, but hardly the scale of explora- A second illustration looks at AI simula-
ter than the equations and assumptions in tion seismic resolution. One UT-RPSEA tion problems, Fig. 2. Author Sanjay Srini-
the coded program or required vasan comments, “the model
data input. Neuro computing Fig. 1. One UT-RPSEA project pioneered an AI effort that tried of the Lobster data, on the left,
should only be a reference to to develop a reservoir production tool for EOR. Source: Sanjay is generated using a traditional
machine-learning that is closely Srinivasan,
03, 2011.
Lesli Wood and UT-Austin, RPSEA Project 08121-2701-
two-point statistics-based algo-
supervised, not to a self-aware rithm (SISIM) and the curvi-
robot with “rights.” AI might linearity of channels is not pre-
replace what you do, but it can served in the model.” Therefore,
never replace you. Perhaps. the common algorithm was im-
We were seduced in the proved after multiple iterations,
1990s, morphing geologists per the model on the right. Both
as 3D conceptualizers into be- used the same data set as input.
coming companies’ worksta- Training algorithms matters.
tion “geophysicists.” The value The UT project spent years
of geophysical-geos was lost attempting to train an AI pro-
on management, eliminating gram from multiple formats
advantages that math-based of 3D, well logs, and pressure/
geophysicists provided to inter- time/production data. Each
pretation. Interpreters were re- investigator assumed the input
quired to work late nights, gen- from others was perfect, theirs
erating push-button, brightly with limitations. The truth? All
colored maps. Math geos were had limitations. The one prob-
sent to run field crews on the Fig. 2. Two representative permeability models (top layer) for lem that we could not over-
front end of exploration or pro- cluster 9 of Lobe 10. Source: Personal communication in draft, H. come was the lack of enough
cessing special projects at the Zhou, S. Srinivasan, L. Li and K. Lee, 2015. dynamic data to calibrate the
tail end. geology or reservoir param-
Interpreters lost under- eters. All machine learning pro-
standing of the limits of data grams rely on someone knowing
and methods. Poorly human- the correct or near correct answer
reasoned dry holes almost as input. Do you see a problem
killed rank exploration by with that?
2001. A V.P. friend got “retired,”
after his under-five-year Gulf of ŝŝWJHTEXAS@AOL.COM / William (Bill) Head is
Mexico (GOM) team drilled a technologist with over 40 years of experience in
six, $50-million, look-a-like dry domestic and international exploration.

World Oil® / AUGUST 2018 15

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Sensing doubts
Slapping all manner of sensors on a rig
without considering the quality of subse-
quent data is to drilling automation what
a switch to low-tar cigarettes and light
beer is to a healthier lifestyle. Both cases
represent self-defeating exercises with po-
tentially ruinous outcomes.
“The drilling industry right now is
moving to more automation of data analyt-
ics. There’s a lot of data available, and the
industry is going to be making more and
more decisions based on that data,” Maria
Araujo, R&D manager for the Southwest
Research Institute (SwRI) of San Antonio,
Texas, told the IADC Drilling Engineering
Committee (DEC) quarterly Technology
Forum on June 13 in Houston. “But, the
key question is, is that data accurate?”
In the latest effort to answer that ques-
tion, the SwRI is spearheading the JIP,
“Independent Verification and Validation
(IV&V) of Sensors and Systems in Drill-
ing.” As program manager, Araujo was on
hand to update the first phase of the JIP,
which the nonprofit institute introduced
during a similar DEC forum on March 21.
The primary objective of the JIP is de-
veloping a unified standard for the third-
party verification and validation of critical
sensors and systems used in the drilling op-
eration. The aim is to verify that the sensor
or system meets intended requirements
and provides in-situ validation that it oper-
ates properly in the targeted environment.
“The prize that will come out of the JIP will
be a recommended practice that industry
participants can utilize,” Araujo said. “In-
situ is the key word here. A lot of sensors
and systems go through some level of vali-
dation, but we’re focusing on in-situ veri-
fication and validation during the drilling
operation. The performance in-situ during
drilling may vary, because the environment
and operating conditions may impact the
quality and performance of those sensors.”
JIP rationale. The JIP was conceived
to address growing industry concerns
that critical decisions, based on faulty sen-
sor data, can lead to costly inefficiencies,
at best, or catastrophic events, at worst.
DRILLING ADVANCES
JIM REDDEN, CONTRIBUTING EDITOR
The JIP sprung out of the DEC-affiliated
Drilling Systems Automation (DSAS)
Roadmap cross-industry initiative, where
Southwest Research Institute has served as
an original member of the more than five-
year-old steering committee.
While operators have individually con-
ducted verification and validation activi-
ties, Araujo said the JIP hopes to resolve
the industry’s lack of a consistent set of
defined requirements to confirm the per-
formance of critical sensors and associated
systems. “We’re not going to re-invent the
wheel. There’s a lot of standards out there
that cover several aspects of sensor valida-
tion and data validation, so we’re going to
leverage, not re-invent, those,” she said.
“The idea is to add to whatever is out there
for sensor validation.”
“What’s happening today is that a lot
of people are doing this individually, or in
silos if you will, so there’s a lot of repeti-
tion from different operators and so forth.
The idea is to come up with something
everyone can agree on, and everyone can
benefit from.”
Araujo said the JIP will exploit SwRI’s
extensive experience in employing the
IV&V approach in commercial aviation,
transportation, and other high-risk and
data-driven sectors, with the objective of
reducing the well-documented risks from
inferior drilling data. Along with hiccups
in the communications channel transfer-
ring data from the point of acquisition
to the end-user, Araujo said a number of
drilling sensors have been shown to be
sorely inadequate. In some cases, they are
either irregularly calibrated or improperly
maintained, or else measuring properties
in the wrong location, thereby invalidat-
ing the purported values. In other in-
stances, sensors have been shown to be
inadequately designed for the intended
function. “Our goal is to develop a meth-
odology and procedures to verify and val-
idate those sensors while they are in op-
eration, to make sure their performance
is acceptable,” she said. “If we’re going to
make either automation or analytical de-
cisions, we have to make sure that data is
accurate and validated.”
As part of the JIP’s first phase, which is
seeking industry participants, an evolving
steering committee of subject matter ex-
perts will guide the identification and pri-
oritization of critical drilling sensors and
systems. A key deliverable is development
of a proof of concept, in which a standard-
ized IV&V methodology will be employed
on a drilling application.
The JIP mandate stipulates that “the
results from the program will be the publi-
cation of an agreed industry methodology,
which can be implemented by any recog-
nized and competent independent organi-
zation including, but not limited to, SwRI.”
“Big issue.” In an earlier joint effort,
the then-newly formed Operators Group
for Data Quality in November 2016 be-
gan wrangling with less-than-reliable rig
surface sensor data, just as sinking oil
prices magnified the relationship of real-
time data analytics to improved efficien-
cies and lower costs. The group has since
teamed up with contractors, service com-
panies and OEMs “to accelerate the adop-
tion of standardized key measurement
specifications, data storage, transmission,
transformation and integration.”
“We agree this (inadequate sensor data)
is a big issue, and there’s a big effort around
that,” Joey Husband, V.P. of global op-
erations for Nabors Drilling Technology,
said at the March DEC forum. As part of
a presentation on “Creating Uptime with
a Disruptive Drilling Contractor Business
Model,” Husband said it’s imperative that
sensors collecting critical data be accurate,
calibrated and fit-for-purpose, to effective-
ly address the vagaries of a drilling opera-
tion. “We have a lot of smart people writing
codes for equipment, but the codes assume
the rig is perfectly wired, perfectly ground-
ed with the exact equipment, where it’s
supposed to be,” he said.
ŝŝJIMREDDEN@SBCGLOBAL.NET / Jim Redden, a Houston-based
consultant and a journalism graduate of Marshall University, has
more than 40 years of experience as a writer, editor and corporate
communicator, primarily on the upstream oil and gas industry.
World Oil® / AUGUST 2018 17
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Into the weeds
Driving operational performance in oil
and gas is a pretty big topic, and it’s also
the subject of a white paper from consult-
ing company EY. At 16 pages, the paper
is necessarily a high-level overview, with
subtopics like “Industry objectives” and
“Top business issues” that most anyone in
the industry could predict. Still, high-level
overviews such as EY’s effort have value.
But, the devil is in the details, as they
say. A screed on the importance of oper-
ational performance is not forthcoming.
Instead, it may be more interesting to get
into the weeds, as they also say, and take
a look at an arcane but useful process
that could help you earn your operation-
al performance driver’s license.
A paper, “Production availability anal-
ysis for oil and gas facilities: Concepts
and procedure” (Brissaud, et. al., DNV
France) scrutinizes the topic, beginning
with a core concept:
The expediency of oil and gas ex-
ploitation depends on the availability
of processing facilities. “Availability” is
standardized as the ability of an item to be
in a state to perform a required function,
under given conditions, at a given instant
of time, or over a time interval, assuming
that the required external resources are
provided. It is based on time, and a single
state (the up state) of an item.
Since oil and gas facilities can be in
multiple states (i.e., operate at different
production levels), ranging continuously
from nil to full production, an up state can
be assumed when the actual production is
equal to, or greater than, a reference level
(e.g. a contracted or a design rate). How-
ever, because this availability does not
differentiate states where production is
slightly or greatly below the reference lev-
el, even if the impact on resulting produc-
tion can be important, it is too restrictive
for evaluations of production systems.
Other availability (or “regularity”)
measures have then been proposed, no-
tably those discussed by T. Aven, 1987.
One measure accepted by the ISO 20815
international standard is production avail-
WHAT’S NEW IN PRODUCTION
DON FRANCIS, CONTRIBUTING EDITOR
ability—the ratio of production to planned
production, or any other reference level,
over a period of time. (The latter is vol-
ume-based instead of state-based; besides,
the resulting measure is not a probability.)
Production availability analysis
takes part in the production assurance
of oil and gas projects. [Activities are
implemented] to achieve and maintain
a performance that is at its optimum, in
terms of the overall economy and, at the
same time, consistent with applicable
framework conditions. It is especially
suitable for projects with medium-to-high
technical risk, and during the first life-cy-
cle phases (feasibility, conceptual design,
and engineering). The production avail-
ability analyses are then used to:
• Predict production performance,
and verify compliance with objec-
tives and requirements (specified
in the production assurance pro-
gram (PAP);
• Identify operational conditions,
subsystems and equipment items
that are critical, and find measures
for performance improvement;
• Compare alternatives, and enable
selection/optimization of equip-
ment items, configurations, main-
tenance actions, and operations,
with economic considerations (un-
der project, technical, operational,
health, safety, environmental and
regulatory constraints).
Production performance analyses
should be consistent, and assumptions
and reliability data should be traceable
(ISO 20815). To fulfill this guidance, a
procedure for production availability anal-
ysis has to be followed.
The authors present a four-step pro-
cedure based on their “…experience in
reliability, availability and maintainabil-
ity (RAM) analyses for oil and gas facili-
ties, and meets the recommendations of
the general framework given by the ISO
20815.”
Space prevents reporting the extensive
details of this procedure. But the authors
set the stage by noting that in the current
phase of the project…decisions regarding
system design have already been made,
and thus the purpose of production avail-
ability analysis is not the same. During
the feasibility phase, the objective can be
to optimize asset development plans by
analyzing several alternatives.
During the conceptual design, optimi-
zation is usually reduced to two or three
alternative field-layout configurations. Fi-
nally, during the engineering phase, only a
few alternative solutions are still possible,
and the production availability analysis is
used to verify compliance with require-
ments, for sparing recommendations and
spare parts optimization.
Production performance measure also
depends on the project phase and relating
objectives. To model more exhaustively
the performance of a production system,
(volume-based) production availabili-
ty…is usually preferred [to] (state-based)
availability. A “reference level” of produc-
tion has, therefore, to be defined.
To this end, the design rate (maxi-
mum input feed rate that can be treated)
is often used in early project phases, as it
is usually time-independent, convenient
for any part or sub-part of the production
chain (independently of other systems),
and does not require sales contract or
well-production rates to be defined. In
more advanced phases of a project, the
planned production volume, assuming
no downtime, can be preferred, taking the
constraints of sales contract (e.g., through
the contracted rate) and well-production
potentials (e.g., through the actual input
feed rate) into account once available.
To avoid time-dependent constraints in
the system description and modeling, it is
more convenient to reason in terms of de-
sign rate during the study basis and model
development, and to translate in terms of
other reference levels only during the pro-
duction availability analyses.
ŝŝDON@TECHNICOMM.COM / For more than 30 years, Don Francis
has observed the global oil and gas industry as a writer, editor and
consultant to companies marketing upstream technologies.
World Oil® / AUGUST 2018 19

BARRY ZHANG, CO-FOUNDER AND CEO,
Using A.I. to enhance daily operations
The modern smartphone is, for all in-
tents and purposes, an inseparable part of
our lives now. As of March 2017, Android
commanded a larger market share of the
global operating systems than did Win-
dows. Hard to believe? Perhaps your child
received his/her first smartphone before
a laptop?
There are several drivers behind
smartphones, and consumer technology
in general, permeating into our lives. I will
focus on two that relate specifically to the
proliferation of artificial intelligence (AI)
in consumer technology: decision intelli-
gence and virality.
Decision intelligence. Google Maps
provides a well-understood example of
consumer intelligence. When you pull
up directions in this service, it doesn’t
just give you directions to your destina-
tion, the app gives you three alternative
routes, each with a corresponding esti-
mate of drive time. Roughly 90% of the
time, one takes the fastest route, but 10%
of the time, one may decide to take a dif-
ferent route. Google acknowledges that
it doesn’t know whether the situation is
a leisurely weekend drive or someone
late for a meeting. So, it hands over the
final decision to the consumer, but it has
armed people with the decision intelli-
gence, to make the right decision, with a
few finger strokes.
AI is also providing novel ways of de-
livering business intelligence to the oil
and gas industry. For example, a standard
part of developing shale plays is examin-
ing public and private data sets, to see
where nearby wells have been drilled,
what direction the laterals were oriented,
and how much proppant went into the
frac job. This workflow may be called tra-
ditional data analytics for Business Intel-
ligence 1.0; however, the latest AI tools
deliver important enhancements and
lower cycle times. They can generate pro-
duction predictions on an individual well
basis, with a customized decline curve
based on the well location (latitude, lon-
gitude and true vertical depth), and the
EXECUTIVE VIEWPOINT
QUANTICO ENERGY SOLUTIONS
types and volumes of proppant and fluids
utilized, aka Business Intelligence 2.0.
A reservoir or frac engineer no longer
needs to spend hours-to-days looking for
trends in Spotfire and guessing whether a
certain dot that doesn’t fit a trend line is
simply an outlier or an important insight
that can save the company millions. Busi-
ness Intelligence 2.0 tools deliver more
accurate results, and in a fraction of the
time. Like Google Maps, Business Intel-
ligence 2.0 tools can deliver results within
a few clicks, leaving an oil company to run
design and cost sensitivities to find the
right scenarios that match its drilling and
production objectives.
Virality. There is a popular notion
that going viral is a phenomenon that is
hard to predict and when it happens, we
don’t really know why. However, technol-
ogy companies spend hundreds of mil-
lions of dollars on mastering the tools
behind virality. How well it is embedded
into the product delivery and user expe-
rience can mean the difference between
becoming Facebook or the start-up you
never heard of. Good examples of AI and
virality include when LinkedIn sends an
email about who is looking at your profile
or when Facebook recommends friends
with whom you should connect. Both
venues foster connectivity between us-
ers and repeat visits to their platform, and
both drive user growth.
In oil and gas, most C-suites work hard
to promote communications and collabo-
ration across business units. Two months
ago, I was in a meeting with a major op-
erator, where the completion engineer
stated that the formation was geologically
benign, so the frac design can be uniform.
Then the drilling engineer stated that the
well tortuosity might cause undulations
out of zone. It is one thing to recognize
the problem, but how can AI promote a
virtuous cycle (or a viral loop) of informa-
tion sharing and insight creation among
and across teams?
The implications of virality, due to Busi-
ness Intelligence 2.0 being utilized for pro-
duction modeling, are significant. Using a
common platform, business development
professionals can work with GGRE and
completions in one simple, intuitive web
interface. In an acreage valuation exercise,
assumptions about formation properties
and frac design can be cross-referenced, to
generate powerful predictions of decline
curves that are customized for a myriad of
subsurface scenarios.
Once the acreage is acquired, the de-
velopment teams can utilize those A&D
models to get a head start on where to
drill the wells and find suppliers for the
specific type of proppant to use for opti-
mal production. As wells start to be deliv-
ered, the production teams can identify
explicit sources of variance between that
initial business development exercise and
actual well performance. But modern-day
digital initiatives are able to make the AI
operational, so data-driven insights from
one team can be captured digitally and
subsequently leveraged by other teams,
months to years afterward.
If you are a large public company,
chances are that Wall Street is asking
about your data strategy. If you are a pri-
vate E&P, chances are that your private
equity sponsors are asking the same—
even the limited partners of private eq-
uity groups are increasingly asking these
questions. The winners in this digital
race are working hard in our industry to
embed lessons learned from everyday
consumer applications, be it consumer
intelligence tools, or virality, or other
forms of technology tradecraft. Oil com-
panies that proactively foster such AI
technologies, to fill in the cracks of daily
operations, will separate themselves
from their competitors and deliver more
alpha for shareholders.
ŝŝBARRY ZHANG is Co-Founder and Chief Executive Officer of
Quantico Energy Solutions, an artificial intelligence company focused
on drilling and geoscience solutions for the oil and gas industry.
Shell, Statoil and Nabors Industries are major investors in Quantico.
Mr. Zhang is a leading expert on artificial intelligence for oil and gas.
He has been sought out for his AI expertise by major, national news
publications.
World Oil® / AUGUST 2018 21
 AMERICAN ASSOCIATION OF DRILLING ENGINEERS

2019 NATIONAL TECHNICAL CONFERENCE AND EXHIBITION

Elevating Data
FOR MILE HIGH PERFORMANCE

09 -10 April 2019 | Hilton Denver City Center | Denver, Colorado

CALL FOR PAPERS Abstracts due by September 30, 2018

Those interested in submitting a non-commercial Authors will be notified of acceptance by October 31, 2018
technical paper and making a presentation are Papers due by February 15, 2019
invited to submit a maximum 250 word abstract Presentations due by March 15, 2019
at www.aade.org

SUGGESTED TOPICS: CONFERENCE CHAIR

Frank Seidel
• Bit Design • Drilling Optimization • Rig Technology fseidel@seideltech.com
• Case Studies • Dual Gradient Drilling • Risk Management
• Cementing / Zone Isolation • Factory Style Drilling • Real-Time Operating CONFERENCE CO-CHAIRS
• Circulation Loss • Field Development • Remote Data Monitoring Erin Britton
• Completions • Fluids • Software and Modeling ebritton@sundanceenergy.net
• Data and Analytics • Formation Evaluation • Special Techniques
Stephen Flowers
• Deepwater and Subsea • Geoscience • Tubulars / Expandables
sflowers@kecorp.us
• Directional Drilling • HSE • Wellbore Stability
• Downhole Tools • HTHP • Well Construction
CONFERENCE COORDINATOR
• Downhole Technologies • Innovative Technologies • Well Control
Carolyn Berry
• Drilling Automation • MPD / UBD • Well Planning
carolynberry@att.net
• Drilling Fluids • New Methodologies
• Drilling Management • Performance Drilling
PROGRAM COORDINATOR
Mary Dimataris
The American Association of Drilling Engineers will host the mdimataris@outlook.com
National Technical Conference covering subjects considered to
be improvements and innovations in drilling operations.
This conference will be of interest to major and independent
operators, service companies, drilling contractors, equipment
and materials manufacturers.

AADEAMERICAN ASSOCIATION
AADEAMERICAN ASSOCIATION
A
For more information visit: www.aade.org of DRILLING ENGINEERS of DRILLING ENGINEERS of

Philippe
Herve   
Guiding the point of
sail for AI in oil and gas
Although his father was an oil man,
Philippe Herve never expected to find
himself in the oil and gas business. Herve
was born in Port Harcourt, Nigeria, but
his family relocated to France, a few
years later. His father’s career as a field
engineer for Schlumberger required fre-
quent travel, exposing Herve to a variety
of new places with diverse cultural back-
grounds, from Kuwait to Burma.
While studying civil engineering at the
Institut national des Sciences appliquées
de Rennes (National Institute of Ap-
plied Sciences in Rennes, France), Herve
joined a sailing club. Sailing competitively
not only solidified Herve’s love for travel,
but also established an affinity for innova-
tion. “When sailing, you have to pay at-
tention to the details,” he explained. “It is
all about the speed of the boat, and how
you can make things work faster.”
Herve says he primarily sailed on a
470, a monohull planing dinghy that is
typically handled by a two-person crew.
While training to go to the summer
Olympics, and competing against the
world’s top sailing teams, Herve worked
on mast and sail designs that would give
him the advantage in a race. Ultimately,
Herve never made it to the Olympics,
but won several national titles and cham-
pionships. He often jokes that while he
did not get to go to the Olympics, due to
INNOVATIVE THINKERS
EMILY QUERUBIN, ASSOCIATE EDITOR
a political boycott of the games, he took
the time to relax and won his gold medal
when he met his wife.
His 22-year career with Schlumberg-
er combined many of the things he was
most passionate about—science and en-
gineering, world travel, and innovation.
He started as a field engineer for the
company’s wireline group, but over time,
held a variety of roles within the lead op-
eration, research, engineering and manu-
facturing groups. However, it wasn’t un-
til Herve worked at Schlumberger’s Doll
Research Center in Ridgefield, Conn.,
that he found his true passion. While
working to develop and patent new solu-
tions related to corrosion prediction and
detection, he was struck by the seeming-
ly endless possibilities of artificial intel-
ligence (AI).
Today, Herve serves as V.P. of oil and
gas at SparkCognition, a cognitive ana-
lytics company with a platform designed
specifically for the protection, moni-
toring and optimization of oil and gas
operations. “AI allows companies to de-
tect failure on an asset before it occurs,”
Herve said. “These predictive capabili-
ties allow companies to increase uptime
and maximize their overall operations.”
As the former CEO of a cybersecurity
company, Herve also has been working
to attract the oil and gas industry’s atten-
tion to the importance of data protection.
“Our industry is behind others in terms of
cybersecurity. For some reason, oil and
gas seems to be resisting these technolo-
gies, when it should be adopting them,”
he explained. “I am still baffled as to why
our industry is not more concerned or ac-
tively adding modern protections when
the Department of Energy is warning the
industry that oil and gas is a strong target
to cyber villains.”
Through his network and knowledge
of the oil and gas industry, Herve has fa-
cilitated the development of SparkCogni-
tion’s patented data-driven AI solutions.
This includes solutions for predictive
maintenance, cybersecurity and auto-
mated model building. To keep rigs up
and running, and safe from cyber attacks,
the company is implementing cutting-
edge AI solutions that can significantly re-
duce downtime for oil and gas operations.
Through the use of data and machine
learning techniques, it provides operators
with the ability to predict potential asset
failures before they occur.
Ultimately, with these different offer-
ings, Herve hopes to apply that same drive
for innovation he has always had to revo-
lutionize the oil and gas industry. This
passes muster for the entire company, as
its website mission statement reads, “AI is
not just evolution, it’s revolution.”
World Oil®/AUGUST 201823
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 INDUSTRY AT A GLANCE
CRAIG.FLEMING@WORLDOIL.COM

Crude benchmarks posted four straight weekly declines WORLD OIL & NGL PRODUCTION Million barrels per day
in July, despite an unexpected halt of Saudi shipments after JUNE 2018 MAY 2018 AVG. 2017 AVG. 2016
an attack on two of its oil tankers in the Red Sea. Futures OPEC–CRUDE OIL
contracts also lost ground after financial advisors warned Saudi Arabia 10.46 10.03 9.96 10.42
that escalating trade tensions, between the U.S. and China, Iran 3.79 3.82 3.80 3.55
were threatening global growth. After a request by President Iraq 4.55 4.47 4.47 4.42
Trump, Saudi Arabia increased its daily production 4.6%, to United Arab Emirates 2.90 2.87 2.93 3.05
10.49 MMbopd in June, while the U.S. and Russia posted out- Kuwait 2.72 2.71 2.71 2.88
put gains of 1%, each. The U.S. rig count averaged 1,050 in Neutral Zone 0.00 0.00 0.00 0.00
July, six less than were active in June. DUCs in the Permian Qatar 0.62 0.61 0.61 0.65
basin increased 164 in June, as logistical issues continue to Angola 1.45 1.51 1.64 1.71
strand capital in that region. International drilling increased Nigeria 1.46 1.47 1.53 1.47
5.3% to 1,096 rigs in June, due mainly to a large gain in Cana- Libya 0.71 0.97 0.83 0.39
dian land-based activity. Algeria 1.05 1.04 1.05 1.11
Equatorial Guinea 0.13 0.13 0.13 0.14
U.S. OIL PRODUCTION1 Thousand barrels per day Ecuador 0.53 0.53 0.53 0.55
Venezuela 1.30 1.36 1.97 2.24
DAILY AVERAGE FOR MONTH
JUNE JUNE MAY Gabon 0.20 0.17 0.20 0.23
STATE 20182 20173 % DIFF. 20182 NGLs & condensate1 6.93 6.93 6.86 6.78
Alabama 21 18 16.7 21 TOTAL OPEC 38.80 38.62 39.21 39.59
Alaska 440 463 –5.0 495 OECD2
Arkansas 21 14 50.0 21
U.S. 14.99 14.87 13.22 12.53
California 505 490 3.1 500
Mexico 2.12 2.11 2.23 2.47
Colorado 478 324 47.5 475
Florida 5 5 0.0 5 Canada 4.67 5.01 4.83 4.47
Illinois 22 23 –4.3 24 United Kingdom 1.02 1.03 1.01 1.03
Kansas 118 100 18.0 120 Norway 1.73 1.62 1.97 1.99
Kentucky 7 7 0.0 7 Europe-others 0.50 0.50 0.51 0.49
Louisiana4 1,604 1,440 11.4 1,620 Australia 0.31 0.31 0.31 0.34
Michigan 19 15 26.7 19
Pacific-others 0.07 0.07 0.07 0.08
Mississippi 67 51 31.4 62
TOTAL OECD 25.42 25.53 24.18 23.42
Montana 75 56 33.9 73
NON–OECD
Nebraska 6 7 –14.3 6
New Mexico 665 443 50.1 665 Russia 11.45 11.35 11.36 11.34
North Dakota 1,215 1,017 19.5 1,145 FSU-others 3.11 3.13 3.00 2.90
Ohio 68 50 36.0 70 China 3.82 3.82 3.87 3.98
Oklahoma 570 442 29.0 566 Malaysia 0.69 0.69 0.69 0.71
Texas4 4,416 3,777 16.9 4,329 India 0.85 0.85 0.86 0.85
Utah 118 93 26.9 115
Indonesia 0.82 0.82 0.85 0.88
West Virginia 30 25 20.0 30
Asia-others 0.97 1.00 1.06 1.15
Wyoming 235 202 16.3 233
Others5 33 28 17.9 33 Europe 0.13 0.13 0.13 0.14
TOTAL U.S. 10,738 9,089 18.1 10,634 Brazil 2.82 2.73 2.74 2.61
LOWER 48 10,298 8,626 19.4 10,139 Argentina 0.58 0.58 0.58 0.61
1 Includes lease condensate. 2 Preliminary estimate, API. Colombia 0.86 0.87 0.86 0.88
3 DOE estimate. 4 Includes federal OCS production.
5 Includes Arizona, Indiana, Missouri, Nevada, New York, Pennsylvania, South Dakota, Tennessee and Virginia.
Latin America-others 0.37 0.37 0.37 0.38
Oman 0.98 0.98 0.98 1.01
U.S. GAS PRICES ($/MCF) & PRODUCTION (BCFD)
Syria 0.02 0.02 0.02 0.03
100 7 Yemen 0.04 0.04 0.03 0.02
Egypt 0.64 0.64 0.64 0.67
6
80 Africa/Middle East-others 1.38 1.31 1.24 1.20
5 TOTAL NON–OECD 29.52 29.34 29.28 29.34
60 4 PROCESSING GAINS3 2.32 2.32 2.29 2.27
TOTAL SUPPLY 96.06 95.81 94.96 94.61
40 3
Source: International Energy Agency. Note: Totals and subtotals may not add, due to rounding.
Monthly price (Henry Hub) 2 1 Includes condensates reported by OPEC countries, oil from non-conventional sources, e.g. Venezuelan Orimulsion
20 12-month price avg.
Production 1 (but not Orinoco extra-heavy oil) and non-oil inputs to Saudi Arabian MTBE.
2 Comprises crude oil, condensates, NGLs and oil from non-conventional sources.
0 0 3 Net of volumetric gains and losses in refining (excludes net gain/loss in China and non-OECD Europe) and marine
M A M J J A S O N D J F M A M J J A S O N D J F M A M J J transportation losses.
2016 2017 2018
Production equals U.S. marketed production, wet gas. Source: EIA.
WORKOVER RIG COUNT
JUNE 2018 YR. AGO
SELECTED WORLD OIL PRICES ($/BBL) REGION ACTIVE AVAIL. IDLE STACKED TOTAL % UTIL. ACTIVE
Texas Gulf Coast 178 47 64 65 354 50% 159
80 ArkLaTex 56 20 45 72 193 29% 58
70 W. Texas Inter. Eastern U.S. 37 52 25 12 126 29% 54
Brent Blend South Louisiana 18 2 10 2 32 56% 19
60 Dubai Fateh
Source: DOE Mid-Continent 135 32 87 100 354 38% 144
50 West Texas / Permian 475 20 181 163 839 57% 409
Rocky Mountains 263 50 142 57 512 51% 217
40 West Coast / Alaska 159 37 137 88 421 38% 175
30 TOTAL U.S.   1,321 260 691 559 2,831 46% 1,219

20 Active - crewed and worked every day during the month. Source: AESC
J A S O N D J F M A M J J A S O N D J F M A M J J Available - has crew ready to work.
Idle - capable of being put to work in 48 hr and does not require spending in excess of $50,000.
2016 2017 2018 Stacked - cannot work without investment in excess of $50,000.

World Oil® / AUGUST 2018 25

 INDUSTRY AT A GLANCE
CRAIG.FLEMING@WORLDOIL.COM

INTERNATIONAL ROTARY RIG COUNT Monthly average INTERNATIONAL ROTARY U.S. ROTARY
JUNE 2018 MAY 2018 JUNE 2017 DRILLING RIGS DRILLING RIGS
REGION & COUNTRY LAND OFFSHORE LAND OFFSHORE LAND OFFSHORE
CANADA* 134 3 80 3 148 2 1,400 1,400
EUROPE 48 30 52 28 59 32
Germany 2 0 3 0 3 0
1,250 1,100
Italy 1 2 1 1 4 0
Netherlands 0 0 2 1 0 2
Norway 0 14 0 13 0 15 1,100 800
Poland 6 0 6 0 10 0
Romania 6 1 6 1 5 0 950 500
Turkey 19 0 19 0 21 0
United Kingdom 1 6 0 5 1 8
800 J J A S O N D J F M A M J J A S O N D J F M A M J 200 J J A S O N D J F M A M J J A S O N D J F M A M J J
Others 13 15 14 7 15 7 2016 2017 2018 2016 2017 2018
MIDDLE EAST** 350 42 353 48 355 42
Abu Dhabi 39 13 39 13 36 13 Source: Baker Hughes, a GE company.

Egypt 24 3 21 4 23 4
Iraq 60 0 60 0 51 0
Kuwait 54 0 54 0 56 0
Oman 53 0 54 0 54 0
U.S. ROTARY RIG COUNT Monthly average

Pakistan 23 0 24 0 25 0 % DIFF.
Saudi Arabia 92 16 97 19 103 16 JULY JUNE JULY JULY ‘18
Syria 0 0 0 0 0 0 STATE & AREA 2018 2018 2017 JULY ‘17
Others 5 10 4 0 7 9 ALABAMA-TOTAL 1 1 3 –66.7
AFRICA** 76 18 77 17 72 14 Land 1 1 3 –66.7
Algeria 50 0 50 0 57 0 Inland water 0 0 0 0
Angola 0 4 0 4 0 2 Offshore 0 0 0 0
Kenya 9 0 9 0 8 0 ALASKA-TOTAL 6 9 6 0.0
Libya 0 1 0 1 0 1 Land 6 8 6 0.0
Nigeria 8 5 9 5 4 4 Offshore 1 1 0 0
Others 9 8 9 7 3 7 ARKANSAS 1 1 1 0.0
LATIN AMERICA 154 26 150 24 158 34 CALIFORNIA-TOTAL 15 15 12 25.0
Argentina 72 0 67 0 60 0 Land 15 15 12 25.0
Brazil 5 8 5 9 4 13 Offshore 0 0 0 0
Colombia 24 0 24 0 20 0 COLORADO 32 33 37 –13.5
Ecuador 7 0 6 0 7 0 FLORIDA 0 0 0 0
Mexico 12 14 12 11 8 16 KANSAS 0 0 0 0
Venezuela 24 2 25 3 47 2 KENTUCKY 0 0 1 –100.0
Others 10 2 11 1 24 3 LOUISIANA-TOTAL 56 58 70 –20.0
ASIA-PACIFIC 136 79 137 81 119 75 North - Land 33 36 43 –23.3
Australia 19 4 18 4 12 0 South - Inl. water 4 3 3 33.3
China, offshore 0 26 1 26 0 20 South - Land 4 2 2 100.0
India 85 31 84 30 80 30 Offshore 16 17 22 –27.3
Indonesia 30 3 32 3 21 1 MICHIGAN 0 0 0 0
Malaysia 0 8 0 6 0 6 MISSISSIPPI 3 3 3 0.0
New Zealand 0 0 0 0 0 0 MONTANA 0 0 1 –100.0
Thailand 1 4 1 6 3 10 NEBRASKA 0 0 0 0
Vietnam 0 2 0 3 0 4 NEVADA 2 2 0 …
Others 1 1 1 3 3 4 NEW MEXICO 101 92 59 71.2
TOTAL 898 198 842 199 911 199 NEW YORK 0 0 0 0
**No data available for Iran and Sudan/South Sudan. Source: Baker Hughes, a GE company. NORTH DAKOTA 57 55 53 7.5
OHIO 22 22 27 –18.5
OKLAHOMA 139 140 134 3.7
INTERNATIONAL OFFSHORE RIGS PENNSYLVANIA 38 38 34 11.8
U.S. GULF OF MEXICO NORTHWEST EUROPE WORLDWIDE SOUTH DAKOTA 0 0 0 0
JULY 2018 JULY 2017 JULY 2018 JULY 2017 JULY 2018 JULY 2017 TENNESSEE 0 0 0 0
Total rigs in fleet 78 95 91 108 769 825 TEXAS-TOTAL 525 534 464 13.1
Marketed Supply 45 52 74 81 647 669 Offshore 2 1 0 ...
Inland water 0 0 0 0
Marketed Contracted 36 33 64 63 489 483
District 1 45 47 45 0.0
Rig utilization, % 80.0 63.5 86.5 77.8 75.6 72.2
District 2 31 30 35 –11.4
District 3 15 13 14 7.1
Source: IHS Petrodata Weekly Rig Count.*
District 4 13 13 18 –27.8
District 5 4 4 3 33.3
U.S. DRILLED BUT UNCOMPLETED WELLS District 6 24 25 17 41.2
District 7B 2 3 5 –60.0
JUNE MAY District 7C 48 46 35 37.1
REGION 2018 2018 CHANGE District 8 314 320 263 19.4
Anadarko 908 895 13 District 8A 16 18 19 –15.8
Appalachia 748 753 –5 District 9 4 4 3 33.3
Bakken 769 750 19 District 10 10 10 9 11.1
Eagle Ford 1,537 1,495 42 UTAH 6 8 9 –33.3
W. VIRGINIA 17 17 13 30.8
Haynesville 182 180 2
WYOMING 28 26 25 12.0
Niobrara 431 473 –42
OTHERS 2 1 2 0.0
Permian 3,368 3,204 164 U.S. OFFSHORE TOTAL 19 19 22 –13.6
BASIN TOTALS 7,943 7,750 193 U.S. GRAND TOTAL 1,050 1,056 953 10.2
Source: EIA. Note: Totals may not add, due to rounding. Source: Baker Hughes, a GE company. Note: State monthly averages may not add up to U.S. total, due to rounding.

26AUGUST 2018/WorldOil.com
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 SPECIAL FOCUS: PERMIAN BASIN TECHNOLOGY
Permian basin leads the pack
Innovative completion technology helps
reduce break-even prices to keep operators
afloat in the Permian basin
ŝŝTRAVIS HARRIS, Packers Plus Energy Services
A sudden market downturn can make a promising field
development uneconomic, with many examples from the last
few years. In an effort to gird themselves against volatility,
operators have strived more aggressively to lower operating
costs, as it is now a necessity to decrease sensitivity to unstable
market conditions.
Some operators in the Permian basin have done this suc-
cessfully by taking the lead in adopting innovations in drill-
ing and completion technology. For completion technology,
recent innovations have combined operational improvements
with more effective treatments to improve production. The
goal behind these completion technology advances is to re-
duce breakeven prices and strengthen the industry against
market unpredictability, while taking advantage of the world-
class resource that is the Permian basin.
Key advancements in completion technologies have enabled
Permian basin operators to accelerate acreage development.
LONG-TERM GROWTH PROJECTIONS
According to short-term forecasts from the U.S. Energy
Information Administration (EIA), production growth from
North America will essentially account for almost all of the
expected growth in global oil supply in 2018 and 2019 among
non-OPEC producers, Fig. 1.1
Yet, with minimal estimated production growth in Canada,
and declining production in Mexico for 2018, the U.S. is fore-
cast to account for nearly 90% of incremental North American
liquids supply growth, Table 1. All key U.S. regions are forecast
to increase oil and natural gas production in 2018, with the
most significant increases in the Permian Basin for oil, Fig. 2.2
According to IHS Markit, capital expenditures in the Perm-
ian basin will represent almost a third of total spending in major
onshore plays of the U.S. by 2021, Fig. 3.3 Total completed wells
in the Permian basin are also estimated to make up over a third
of total onshore U.S. plays by 2020.4 As such, based on current
trends, the Permian basin is poised to be the main source of liq-
uids supply growth for the global oil market.
TECHNOLOGICAL ADVANCEMENT
FOR HIGHER EFFICIENCY
The Permian basin showcases the potential for U.S. uncon-
ventional performance, where operators have managed to lower
costs, year by year, while achieving higher production. This
phenomenon is not restricted to the Permian basin; since 2011,
break-even prices have decreased in all key regions, Fig. 4.5
World Oil® / AUGUST 2018 29
PERMIAN BASIN TECHNOLOGY

More recently, from 2016 to 2017, estimated break-even pric- ing costs. As the unconventional industry gathered momen-
es in the Permian basin have dropped further, Fig. 5. Various sub- tum, the demand for efficiency sparked trends and innova-
plays show a decrease ranging from 4% to 9%.4 This economic tions such as:
efficiency can be attributed to many factors, including discounted • Bullhead stimulation to zonally isolated multi-stage stimu-
service rates, streamlined logistics, optimized operational effi- lation systems
ciency, and most importantly, changes in technology. • Continuously pumped sliding sleeve systems
Technological advancement is the underlying factor that • Extended lateral drilling.
has, and continues to, facilitate better production while lower- These changes have been moving steadily toward more op-
erationally efficient systems while improving the effectiveness
Table 1. North American crude oil supply, MMbpd. of treating the entire lateral.
Country 2017 2018 2019
U.S. 15.6 17.6 19.1 OUR EXPERIENCE IN THE PERMIAN
Canada 5.0 5.3 5.5 Packers Plus has been completing wells successfully in the
Mexico 2.3 2.2 2.2
Permian basin since 2009, working with operators to access
unconventional reservoirs. Over the years, operators have
Fig. 1. Estimated short-term North American crude oil and liquid gradually increased stage count and lateral length, as well as
fuels production growth. By 2019, U.S. oil production is expected
to grow more than 4 MMbpd, Canada is estimated to grow close boosted rates and proppant volumes, both ultimately leading to
to 1 MMbpd. Mexican output is expected to decline slightly. improved production.
Chart: Adapted from EIA. These operators have access to a full range of proven comple-
5.0 tion solutions applicable to the Permian basin, including sliding
2019 sleeves for both open-hole and cemented liner systems, liner
4.0
hangers, hydraulic toe sleeves and stage tools. Furthermore, a
production growth, MMbpd

2018
Crude oil and liquid fuel

2017
3.0 new full-bore latch system is set to provide benefits that over-
2.0 come challenges of current completion methods.
1.0
Open-hole completions. StackFRAC HD is a sliding sleeve
0.0 system that virtually eliminates non-productive time, compared
-1.0 to traditional plug-and-perf. Once the system is installed and
United States Canada Mexico the packers are set, the stimulation can be done from start to
finish in one continuous pumping operation. The first stage is
Fig. 2. Oil and gas production forecast for key U.S. regions, activated, using a hydraulic sleeve, which does not require an
2017 actuals and 2018 predictions. Source: EIA. intervention such as coiled tubing to access the toe. For all other
5,000 stages, sleeves are opened using actuation balls, which also iso-
June 2018 late each stage from lower zones.
4,000 June 2017 The ball for each subsequent stage is pumped in the flush of
Oil production, Mbpd

3,000
the previous stage, reducing overall completion time and fluid
volumes. Degradable balls can further improve efficiency by
2,000 eliminating the need for mill-out, which saves significant time
and equipment costs. Unexpected problems, such as getting
1,000 stuck, can spiral into major time and cost expenditures. When
0 problems occur, mill-outs can take hours or sometimes days
Anadarko Appalachia Bakken Eagle Ford Haynesville Niobrara Permian longer than planned.

Fig. 3. Estimated annual capital expenditure and well count in major U.S. onshore plays. Source: EIA.

80 12,000
Bakken Bakken
Eagle Ford 10,000 Eagle Ford
Estimated annual capital expenditure per day

Permian basin Permian basin

U.S. onshore annual well count by play

60
8,000

40 6,000

4,000
20
2,000

0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020

30 AUGUST 2018 / WorldOil.com
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PERMIAN BASIN TECHNOLOGY

For these reasons, continuous pumping and sliding sleeve
completions are arguably the most efficient of all styles.
Case study. An operator developing nearly 3 million acres in
the Permian basin wanted to access these reservoirs while keep-
ing costs low. The operator uses both open-hole sliding sleeve
systems and plug-and-perf.
Comparing production among an area of 40+ horizontal
wells completed by this operator, targeting the Yeso reservoir,
10 wells that were completed using sliding sleeve systems show
a 30% higher average production after 24 months, Fig. 6. Using
StackFRAC HD, the operator has been able to gain significantly
higher production while reducing or effectively eliminating
non-productive time, and lower operational risk by eliminating
well intervention and mill-out.
Cemented liner completions. Combining a cemented liner
with the operational efficiency of a sleeve system, QuickPORT
IV sleeves can be run as part of the liner for a limited entry treat-
ment. Individually isolated entry points are treated together in
a single stage, and each nozzle is reinforced with tungsten car-
bide to prevent entry point erosion. One ball opens all sleeves
in a stage, and like StackFRAC HD, incrementally larger balls
open subsequent sleeves while providing zonal isolation. From
the toe to the heel, the stimulation is done in one continuous
pumping operation.
By removing wireline and coiled tubing operations, and us-
ing degradable balls to avoid mill-outs, overall completion time
and fluid volumes are more efficient using the limited-entry
sliding sleeve than plug-and-perf.
Fig. 4. Average break-even prices fell during the 2013-to-2016
period in all key shale plays. For Permian Midland, the break-even
has fallen from $98/bbl to $39; in the Permian Delaware,
it dropped from $81 to $33. Source: Rystad Energy.
100 98
90 85
80 81
Estimated break even price
Case study. Another operator using plug-and-perf in the
Permian had been having problems with wireline and coiled
tubing. These issues included plug pre-setting, perforating,
and applying sufficient weight on bit for mill-outs, particularly
in wells with an MD greater than 20,000 ft.
To resolve this issue, the operator began running the first
four or five stages of its extended-reach laterals with clusters of
limited-entry sleeves. This successfully eliminated unnecessary
costs associated with operations at extreme depths, while main-
taining the limited-entry stimulation design, and eliminating
entry point erosion. After the toe stages, the operator continued
with plug-and-perf for the rest of the stimulation. This hybrid
design became standard for wells exceeding 20,000 ft, MD.
More recently, the operator completed a particularly long
well targeting the Wolfcamp formation. The well had a 23,300-
ft MD, including a long, 12,200-ft lateral section. To cover the
deepest 3,900 ft of the lateral, 80 sleeves were grouped into the
first 20 stages before, as usual, plug-and-perf was planned for
the rest of the completion.
This hybrid completion technique proved effective in the
significantly longer well, and the first 20 stages were completed
in just 70 hr of pumping time. Considering the longer-than-
average MD, the strategy successfully reduced operational risk,
non-productive time, and potential cost over-runs. The success
of the 80-sleeve completion proves the effectiveness of the lim-
ited entry system in its ability to perform as a high-density, high-
stage count completion solution, Fig. 7.
A reliable liner hanger. The basic expectation of a liner hang-
er is that it should anchor the completion system and maintain
pressure integrity throughout the life of the well. Furthermore,
a liner hanger also should function reliably to lower operational
risk, saving time and money. To do these things, a liner hanger
must have capabilities in these areas:
• Pressure rating
• Hanging and rotational capability
• Built-in mitigation and contingency.

70 73
66 Fig. 6. In an area where the operator completed over 40 wells
60 targeting the Yeso reservoir, 10 wells that were completed using
50 Permian Midland 39 sliding sleeve systems produced almost 30% more, on average,
40 Permian Delaware 38 after two years.
30 Eagle Ford 34
Niobrara 33
20 200
Bakken 29
10
0 180 StackFRAC
2013 2014 2015 2016 Other 29% higher
160
Average cumulative production, Mbpd

Fig. 5. Estimated break-even prices dropped from 2016 to 2017. 140

Source: IHS Markit.
120
55
52 100
Wolfcamp Midland Bakken
Estimated break even price, US$

50 47 Wolfcamp Delaware Eagle Ford 80

44 Bone Spring Austin Chalk
45 42 60
44
42 42 40
40 39 42
41 20
35
39 0
0 31 0 5 10 15 20 25
2016 2017 Months

32 AUGUST 2018 / WorldOil.com
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PERMIAN BASIN TECHNOLOGY
For pressure rating, a liner hanger should be rated above
the system that it is paired with, to ensure that it will not be the
weak link during hydraulic pressure spikes. The PrimeSET sys-
tem is fully gas-tight (V0 qualified) up to 15,000 psi, making it
appropriate for a wide variety of applications, Fig. 8.
As extended laterals become more commonplace, rotational
ability can be a limiting factor. During installation, the Drill
Down Running Tool (DDRT) allows the operator to push, pull,
and rotate with over 20,000 ft-lb of torque. This can be valuable
when working in longer wells, which typically have more dog-
legs and deviations.
Finally, risk mitigation is an important consideration for
liner hangers, particularly the issue of a premature setting while
pushing and rotating the system to depth. Since an accidental
pre-set can cost millions to recover from, the PrimeSET DDRT
is designed with a balanced piston releasing system that makes
it unaffected by pressure spikes, and avoids premature release.
The secondary mechanical release option, using left-hand rota-
tion, is also designed as a contingency.
Over 30 of these liner hangers have been used to install com-
Fig. 7. The 80 sleeves used in a hybrid, extended-lateral
completion successfully lowered operational risk and
non-productive time.
Fig. 8. This liner hanger is fully gas-tight, can handle
over 20,000 ft-lb of torque, and is designed specifically
to avoid premature setting.
34 AUGUST 2018 / WorldOil.com
pletion systems in the Permian basin without issue, with more
than 100 systems deployed over North America.
The Future: Full-bore sleeve completions. The comple-
tions industry is on the brink of proving a new technology that
improves upon existing completion systems and provides fea-
tures that operators have long desired. The benefits of this new
technology include:
• Full-bore during stimulation with no inside
diameter restrictions
• No stage limitations
• Degradable isolation components to avoid mill-out
• Operationally efficient, with minimized
non-productive time.
The Latch-and-Perf system allows operators to increase res-
ervoir coverage with high-stage count capability, pump high
rates throughout stimulation with a full bore, avoid mill-out
time and costs, and improve operation efficiency using latches
that have fast pump-down rates.
This system was installed recently and run successfully in the
Permian basin. During this trial, five stages were placed at the
heel of the well. For each stage, an isolation latch was pumped
downhole on wireline and latched into the locating sub. The
casing was perforated, and the stage was treated.
All five latches were pumped down successfully and latched
into the profile, and treated without incident.
A pump-down version of this system that operates without
wireline and is pumped continuously is also in field trials. This
system will help operators lower break-even prices further by
reducing NPT and eliminating the need for interventions and
mill-out, while maximizing reservoir contact in long laterals.
CONCLUSION
If industry trends and economic projections follow through as
predicted, the Permian basin is set to be the main source of liquids
supply growth for the global oil market. Lowering break-even
prices will lower sensitivity to market volatility. Many operators
in the Permian basin have successfully done this by taking the lead
in adopting innovations in drilling and completion technology.
Key advancements in completion technologies have allowed
operators in the Permian basin to accelerate acreage develop-
ment. Improved efficiency has led to an ongoing reduction in
breakeven prices, which in turn has enabled operators to be
more profitable and less sensitive to oil price fluctuations.
The next generation of completion technology is just getting
ready to build further on this success.
REFERENCES
1. U.S. Energy Information Administration, Short-Term Energy Outlook, May 2018.
2. U.S. Energy Information Administration, Drilling Productivity Report for key tight oil and shale gas
regions, May 2018.
3. IHS Markit; The Permian Basin: A magnet for risk capital; Jan 2017.
4. IHS Markit; Outlook for U.S. Oil and Gas Production 2018-2020; April 2018.
5. Rystad Energy, NASWellCube.
TRAVIS HARRIS has held a variety of operational and
management roles over his 30-year career in the oil and
gas industry. Working as a technical services manager
and an operations manager at large service companies,
he was responsible for all daily operations in a large
district. His focus at Packers Plus is to develop and
implement the company’s strategy for its innovative
cemented systems that improve efficiency, and save time and cost
for operators.
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 SPECIAL FOCUS: PERMIAN BASIN TECHNOLOGY
Perforating system improves stimulation
results in unconventional completions
Efficiently completing horizontal wells in tight
formations is key to a project’s economic
success. In the Permian basin, laterals are
typically stimulated in zoned stages, using
plug-n-perf techniques and hydraulic
fracturing. When planning a perforation
design, it is important to optimize several key
factors to ensure results match expectations.
ŝŝADAM DYESS, Hunting, Titan Division
Perforating tight formations in horizontal wells presents a
dilemma common to unconventional shale plays. Traditionally,
operators must choose between running centralizers in the per-
forating gun string, or letting the string lay naturally on the cas-
ing’s inner wall. In centralized perforation strings, the charges
utilized are positioned at a constant distance from the target
casing’s inner wall. The space between the outer wall of the per-
forating gun containing the shaped charges and the inner wall
of casing is the “fluid gap.” The gap’s influence on charge perfor-
A perforating system and innovative shaped charges provide
consistent entry holes, small exit holes and optimal penetration
that improves stimulation performance.
mance can be predicted and quantified during the stimulation
design program.
The additional length and diameter of centralizers makes
access to highly deviated horizontal wells difficult, if not im-
possible. Running a perforating string without centralizers
improves access but delivers entry holes (EH)—the hole re-
sulting from a shaped charge jet entering the casing—that can
vary by as much as 50% between holes on the high side of the
casing, compared to those on the low side, Fig. 1.
Decentralized perforation strings must work with an asym-
metrical fluid gap, which results in widely varying charge per-
formance, including depth-of-penetration and EH size. Engi-
neers select charges to provide adequate depth-of-penetration,
small exit hole and consistent entry hole to improve stimula-
tion. Conventional shaped charges are generally selected based
on their various performance characteristics; however, they are
not designed to account for fluid gap variances. Neither deep
penetrating (DP), super-deep penetrating (SDP), or good hole
(GH) shaped charges, can provide consistent EH diameter in
decentralized applications.
Inconsistent EH sizes make it difficult for stimulation
designers to accurately calculate flow area, resulting in varia-
tions of proppant distribution and poor stimulation results.
Non-uniform EH diameters can result in erosion and slotting
of smaller perforations during the stimulation process, lead-
ing to under-utilization of the entire perforation set. This can
cause slow ramp-up to intended treating pressures, therefore
World Oil® / AUGUST 2018 37
PERMIAN BASIN TECHNOLOGY
extending pumping time, increasing the volume of frac fluids
needed and reducing well stimulation efficiency.
The perforating gun system also directly affects the operation-
al productivity due to its tendency toward human error during
the gun loading, arming and assembly processes. A reliable and
“dummy-proof” perforating system is required to minimize non-
productive time for the stimulation operation. Pairing the ideal
shaped charges with the right perforating gun system is impera-
tive for efficient well stimulation and maximum productivity.
SHAPED CHARGE SOLUTION
To solve the issues surrounding inconsistent entry holes,
Hunting’s Titan Division developed the EQUAfrac. With
EQUAfrac shaped charges designed specifically to reduce varia-
tions in EH diameter, the H-1 optimizes stimulation perfor-
mance and well production rates in decentralized horizontal
well completions.
EQUAfrac technology can provide EH sizes, with less than
7% variation in diameter, regardless of string position, Fig. 2.
Depending on the perforating gun size and the type of casing,
Fig. 1. Shooting across various fluid gaps, using conventional
shaped charges in decentralized perforating guns, can result in
smaller casing entry holes across the larger fluid gaps, compared
to a larger entry hole on the low side of the casing. The hole size
variation can be as high as 50% and have adverse effects on the
stimulation plan.
Small casing hole
Large fluid clearance
Perforating Perforations
assembly
Large fluid clearance
Large casing hole
Fig. 2. The uniform hole charges account for variances in the
fluid gap in horizontal wells resulting in consistent entry hole
diameters. The charge allows for 360° even distribution of frac
fluids for improved stimulation.
38 AUGUST 2018 / WorldOil.com
the system can, in some cases, deliver EH size variance below
3%. This is accomplished via a proprietary shaped charge liner,
creating a focused jet more quickly and over a longer gap.
The innovative shaped charge technology can produce con-
sistent entry holes, regardless of the distance from the outer wall
of the perforating gun to the inner wall of the casing. Meaningful
stimulation improvements result from consistent EH diameters,
including reaching the treatment rate faster at a lower pressure.
The frac pumping profile, which consists of the treatment
rate, hydraulic horsepower and fluid volume required to reach
formation breakdown, is similarly improved. The time, horse-
power and volume needed to fracture the formation is de-
creased, because uniform EH size delivers equal proppant dis-
tribution in every hole, 360° around the wellbore. The increased
area open to flow leads to consistent pump rates at lower pres-
sures across the stage, Fig. 3. Faster treatments at lower pres-
sures mean less horsepower and fluids, saving time and money
during the fracturing process.
Field trials. To analyze the shaped charge’s performance in a re-
al-world environment, multiple field tests have been performed.
The results were then compared to performance delivered by
conventional shaped charges in decentralized applications.
In one stimulation case study evaluating pumping profiles
after perforating, the 23g EQUAfrac charge outperformed a
comparable 23g conventional charge. The conventional charge
resulted in breakdown pressure averaging 7,500 psi to 8,300 psi,
and treating pressure averaged 8,900 psi. The treating rate aver-
aged around 91 bbl/min. but was inconsistent.
Conversely, the EQUAfrac charge improved break-down
pressure, averaging between 7,000 psi and 7,800 psi, or 500 psi
less than the conventional charge. The treating pressure using
the consistent hole charges averaged around 8,400 psi, which
was 6% lower than that of the conventional charges. The treat-
ing rate increased 10%, to 100 bbl/min.
Treatment rates were reached faster, at a more consistent
rate, when running EQUAfrac, allowing perforations to take
higher sand concentrations at a lower pressure. Other field trials
also demonstrated improved stimulation results that the consis-
tent hole charges provide.
DEPTH OF PENETRATION
While entry hole consistency is a primary factor in frac de-
sign, perforating beyond the drilling-invaded zone is essential
for efficient stimulation. The drilling-invaded zone is the rock
formation surrounding the outer diameter of the wellbore that
was damaged by the concentric pressure of the drilling process.
This near-wellbore area has reduced permeability, due to the
pulverized material that it contains.
The industry consensus for ensuring depth of penetration—
essentially the length of the perforation tunnel—is to extend
past the drilling-invaded zone. Shaped charges that cannot
penetrate past the invaded zone can hinder stimulation perfor-
mance, with further negative impact to future production rates.
Perforation penetration is critical to stimulation performance,
because the depth of perforation directly affects how the fracture
initiates fractures or cracks. Deeper perforations are, on average,
easier to initiate and propagate. Deep, consistently formed perfo-
rations extending into the virgin formation can significantly re-
duce breakdown pressure and improve fracture initiation.
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PERMIAN BASIN TECHNOLOGY

Fig. 3. Consistent hole sizes resulting from EQUAfrac charges provide more area open to flow for the frac fluids, reducing breakdown
pressures and time required for treatments during stimulation.

Hole size Area open to flow

0.60 0.30

0.55
0.25

0.50

0.20
0.45

Area open to flow, in.

Hole size, in.

0.40 0.15

0.35
0.10

0.30

0.05
0.25

0.20 0.00
0° 60° 120° 180° 240° 300° 0° 60° 120° 180° 240° 300°
0.2 in. 0.5 in. 1.1 in. 1.5 in. 1.1 in. 0.5 in. 0.2 in. 0.5 in. 1.1 in. 1.5 in. 1.1 in. 0.5 in.
Phase, ° Phase, °
Fluid clearance, in. Fluid clearance, in.

Fig. 4. The company’s consistent hole charge provides two times The perforation jet causes micro-fracturing to the surround-
the penetration, and significantly lower exit holes, compared to ing formation, destroying larger pores and replacing them with
another consistent hole charge.
smaller ones. Studies have shown that the perforation damage is
14 0.50 significantly higher near the perforation entry, compared to the
Penetration area around the perforation tip further away (SPE paper 51051-
EnHole 0.45
ExHole MS, Halleck).
12
0.40 APPLICATION CHALLENGES
Since their introduction to the market in 2014, the EQUAfrac
10 0.35 charges have completed hundreds of wells, providing a superior
hole charge technology for improved frac efficiencies. While
0.30 consistent EH is imperative for stimulation results that meet
Total penetration, in.

8
Ex/En hole, in.

or exceed the design requirements, there are other charge per-

0.25
6 of penetration, are similarly important. In some cases, a shaped
0.20
4 0.15
0.10
2 leaves the gun. Ideally, the exit hole is as small as possible, so
0.05
0 0.00
Titan Other shaped charge
A secondary reason for a longer, tapered perforation is that
longer perforations are less influenced by the crushed zone sur-
rounding a perforation tunnel than are short perforations. The
perforation crushed zone is the region immediately around the
perforation tunnel that acts as a barrier to further fracture exten-
sion, due to reduced permeability after the perforation event.
40 AUGUST 2018 / WorldOil.com
formance metrics. The exit hole size, as well as the jet’s depth
charge manufacturer is forced to sacrifice depth-of-penetration
to achieve consistent and adequate EH size.
It is also difficult to devise a consistent and large EH while
keeping the exit hole small. The exit hole is the resulting di-
ameter on the perforating gun, formed as the perforating jet
that debris inside of the perforating gun does not follow the
jet and plug up the entry hole, rendering the EH effectively
useless during stimulation.
The company’s consistent hole-shaped charge solves all three
challenges by providing consistent EH size, small exit holes and
penetration well beyond the invaded zone. The shaped charges
can achieve minimum penetration lengths 2½ times the inte-
rior diameter of the wellbore, extending past the low permeabil-
ity damaged zone caused by hoop stress concentrations. The
charges also maintain a beneficial ratio of entry hole size to exit
hole size, which minimizes blockages due to debris.
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PERMIAN BASIN TECHNOLOGY
Fig. 5. The H-1 perforating system and EQUAfrac shaped charges
provide consistent entry holes, small exit holes and optimal
penetration that improve stimulation performance.
Fig. 6. The perforating system has no wires, eliminating tandem
sub maintenance. The system reduces gun-loading times by 80%
and seal connections by 67%, decreasing the possibility of gun
failures.
API stressed rock testing. API RP 19B Section 2 testing re-
quires shooting into stressed rock targets to more closely mimic
downhole perforation performance in shale formations. In multi-
ple head-to-head tests, the Titan charge averaged roughly 10½-in.
of penetration in Section 2 rock tests, above the needed penetra-
tion to extend past the invaded zone, into virgin formation, Fig. 4.
EQUAfrac’s resulting exit hole is significantly lower than the
entry hole, as well as the exit hole, compared to the other tested
charge. This ideal exit hole to entry hole ratio reduces the likeli-
hood of debris plugging the perforation.
In comparison, a non-company consistent EH charge aver-
aged penetration of less than 4½-in., below the needed penetra-
tion to surpass the invaded zone. The other charge also deliv-
ered larger exit holes nearly equal to the entry hole, which can
attribute to debris filling perforations.
In addition to Section 2 rock tests, an actual well stimula-
tion case study was completed by alternating stages running
EQUAfrac and the equivalent other-type consistent hole charge.
Analysis of the resulting pumping profiles showed the other-type
charge resulted in break-down pressure at an average of 8,400 psi
to 9,500 psi, and treating pressure averaged 8,700 psi.
The EQUAfrac charge resulted in break-down pressure aver-
aging around 6,800 psi to 8,200 psi, and treating pressure aver-
aged around 8,100 psi to 8,200 psi. Therefore, the consistent hole
charge showed to break down the formation at pressures 13%
lower than the other type charge, and the resulting treating pres-
42 AUGUST 2018 / WorldOil.com
sure was 6% lower. The operator also noted that the new charge
took less time to reach treating rate and allowed higher sand con-
centrations at lower pressures. These results demonstrated that
the EQUAfrac charge consistently improved stimulation while
decreasing costs.
PERFORATING SYSTEM
To optimize delivery of the consistent hole-shaped charge,
the company developed the H-1 perforating gun system,
Fig. 5. This system is used in traditional, selective fire, and plug-
and-perf operations to improve operational efficiencies and to
reduce associated costs. The system is designed for safe and ef-
ficient gun loading, arming and assembly, compared to conven-
tional perforating guns.
The system loads four times faster than most perforating
guns in the field today. To make perforation gun loading even
simpler, the company created H-Lok shaped charge technology.
These charges simply twist and lock into place.
The H-1 also prevents waste by utilizing predetermined
detonating cord lengths that remove the need for measuring
and trimming. The biggest time-saver is the elimination of the
shooting wire, Fig. 6. While other systems feature “pre-wired”
guns, the company’s design eliminates wires entirely, so there is
zero risk of associated wiring errors.
In addition to gun loading, the field arming operation is also
much faster and easier, using the new perforating system. It is
intuitive and user-friendly because it eliminates wires by using
the RF-Safe ControlFire cartridge. The new cartridge allows
the user to arm the gun by inserting the cartridge into the pin
end of the gun. The cartridge utilizes proven and reliable Con-
trolFire technology, which has a 99.99% success rate with nearly
two million runs.
The new perforating system also improves the total length
of assembly (footprint) by reducing parts and connections.
The tool string footprint is shortened because the box by pin
design eliminates tandem subs between perforating guns. The
system also improves performance in the wellbore by reducing
potential seal failures, because there are no port plugs that can
fail. Overall, the system reduces hardware connections by two
thirds. These advances create a perforating system that is easier
to handle and has reduced opportunities for human error.
CONCLUSION
When completing horizontal shale wells using stage frac
techniques, it is imperative to utilize reliable perforating guns
and shaped charges that will consistently provide uniform per-
forations that extend into the virgin formation. Utilizing the
provider’s line of shaped charges and the H-1 perforating sys-
tem will optimize stimulation performance, reduce costs and
improve operational efficiency when compared to other perfo-
rating systems and shaped charges.
ADAM DYESS is the director of engineering for the Titan
Division at Hunting Energy Services, based in Houston,
Texas. Mr. Dyess has extensive knowledge in
unconventional well completions, working in both the
service and manufacturing sectors of the oilfield industry
for 11 years. He began his career as a wireline field
engineer in the Permian basin and is now focused on
advancing technology and developing new products for well
completions. He holds a bachelor’s degree in biomedical engineering
from Vanderbilt University, Nashville, Tenn.
 SPECIAL FOCUS: PERMIAN BASIN TECHNOLOGY
New frac-pack additive is step change
in sulfide scale control for Permian long horizontals
A new sulfide scale control, frac-pack
additive solved a Permian basin operator’s
severe production impairment during start-
up, and initial frac-fluid return, in 50-stage,
hydraulically stimulated, 15,000-ft horizontal
Spraberry formation wells.
ŝŝDR. CYRIL OKOCHA, Clariant Oil Services
The Permian basin, a sedimentary basin in West Texas and
southeastern New Mexico, is one of the most prolific oil and
gas basins in the United States, with total production over 14.9
Bbbl since 1993. The play spans approximately 250 mi wide and
300 mi long, and encompasses several sub-basins, including the
Delaware and Midland basins.
The geology of these basins is unique, as single wells can of-
ten source oil and gas production from multiple layers of forma-
tion rock across different geological zones. In this article, we are
concerned with the Spraberry formation, which along with the
Wolfcamp formation are regarded as the most productive oil-
Field application of the chemical has resulted in significant cost-
savings through elimination of well entry requirements, post-
hydraulic fracturing treatment. Photo: Clariant Oil Services.
bearing zones in the U.S., and have been dubbed “Texarabia” by
various press. The Permian basin comprises four major plays,
including the Wolfcamp and Bone Spring horizontal plays in
the Delaware basin, and the horizontal Wolfcamp and vertical
Spraberry plays in the Midland basin. They routinely are drilled
together, to access the stacked formations, Fig. 1.
HYDRAULIC FRACTURING/
FLOWBACK FLUID MANAGEMENT
Hydraulic fracturing is an extraction technique used to fa-
cilitate enhanced oil and gas production from hydrocarbon-
bearing formations. The process entails injecting hydraulic
fracturing fluid downhole into an oil or gas well. The injection
pressure used is sufficiently high to cause splitting/cracking of
near-wellbore formation rock in the target, hydrocarbon-bear-
ing formation, allowing release of stored hydrocarbon potential
back to the wellbore via the artificially created fractures. Frac
fluids used in these treatments routinely include solid prop-
pant materials, such as graded sand, which pack into the newly
formed fractures, and function to maintain fluid and gas trans-
mission pathways from reservoir to wellbore, once the hydraulic
pressure is released.
Fracing has contributed significantly to increased U.S. oil and
gas production, by more than 50% of oil output and nearly 70%
of gas production in 2015. This is projected to position the U.S.
as the world production leader by 2021 (EIA 2015- https://
www.eia.gov/todayinenergy/detail.php?id=25372). Hydraulic
World Oil® / AUGUST 2018 43
PERMIAN BASIN TECHNOLOGY
fracturing is regarded by most as the key enabling technology
for economic production of unconventional resources, such as
shales and tight sands.
This article addresses scale-related production challenges
encountered during the initial 30-to-60-day hydraulic fracture
treatment flowback phase in Spraberry long horizontal wells.
During the initial post-shut-in flowback phase, the returning
fracture treatment fluids dominate well-produced water ion
composition (identified via chemical signatures of the fractur-
ing cocktail components). The frac treatment progressively cy-
cles out of the well with time, and eventually the well-produced
water ion composition reverts to that of the reservoir waters.
In general, water processing/disposal costs during flow-
back treatment have been estimated to be between $1.00 to
$8.00 per bbl of water (IHS 2016), and Permian operators
typically include the first 30 to 60 days of flowback disposal
into their capital costs per well. These costs can range from
$0.3 MM to $1.2 MM, making up 5% to 19% of a well’s total
cost (IHS 2014).
Fig. 1. The Midland basin, showing the Spraberry trend with the
location (star) of the subject wells. Map: Shale Experts.
Fig. 2. Typical chemical make-up of a Marcellus hydraulic fracturing fluid.8 Chart: World Oil.
Proppant 3.5750%
Water 95.9719%
44 AUGUST 2018 / WorldOil.com
THE SCALE CHALLENGE:
BLOCKAGES AND DEPOSITION
Typically, during flowback, approximately 30% to 75% of
the fluid injected is returned in the first three weeks. It is, inci-
dentally, a very interesting research area on chemical additives
that enhance the return rates of these injected fluids, which can
be achieved using surfactant chemistry or better polymer and
breaker combinations. The return profile of slick water fractur-
ing versus gel fracturing can be explained by this phenomenon
in the Permian and many other plays in the U.S.
The very nature of fracing operations, with high pressures
and large volumes of water, usually causes substances, such as
released metals or dissolved salts from the formation, to be
brought up with the flowback water, including trapped gases.
Flowback water often contains high concentrations of total dis-
solved solids (TDS), heavy metals, suspended solids, sand and
dissolved radioactive substances released from the formation
(Zhang, 2014).
Hydraulic fracturing chemical additives make up less than
3% of the total frac fluids and are typically included to reduce
well blockages, primarily from dissolved rock formation (calci-
um, magnesium, manganese and strontium). They also are used
to limit heavy metal contamination (such as iron, chromium,
copper, molybdenum, niobium, vanadium, and zinc) and for-
mation fluid imbibition, as a result of leaching and mobilization
of reactive surfaces exposed to the frac fluid. Chemical additives
include scale inhibitors, corrosion inhibitors, iron control agent,
pH and clay control agent, along with other additives, this typi-
cally guarantees a successful hydraulic fracturing job. World Oil
previously published an article ( July 2009, “Considerations for
development of Marcellus shale gas”) that nicely shows the dis-
tribution of chemicals used for typical shale gas gel fractures,
summarized in Fig. 2.
In some hydraulically fractured wells, scale deposition is
not effectively controlled by the conventional scale inhibi-
tor, either as a result of heavy metal and/or sulfide poisoning,
leading to severe scale deposition in the recently opened frac-
tures and wellbore. Flowback duration and production are im-
mediately impacted by these depositions, and well re-entries
with an associated well cleaning plan are required to reinstate
production.
In this article, the challenges that a Permian operator faces
during completion of several 50-stage, hydraulically fractured
Gelling agent 0.0575%
Scale inhibitor 0.0822%
KCI 0.0844%
Acid 0.1186%
Crosslinker 0.0008%
Surfactant 0.0016%
Friction reducer 0.0395%
Biocide 0.0065%
pH adjuster 0.0093%
Corrosion inhibitor 0.0105%
Breaker 0.0237%
Iron control 0.0540%
Total Water Management Solutions
Maximize Water Reuse. Minimize Costs.

TETRA’s integrated water management technology provides real-time monitoring

and automation for transfer, treatment, and storage of fresh, produced and
flowback water. Our innovative technology maximizes the reuse of produced
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© 2018 TETRA Technologies, Inc. All Rights Reser ved. Discover more at tetratec.com
PERMIAN BASIN TECHNOLOGY
Fig. 3. Laboratory testing of the novel sulfide scale control
technology for performance and compatibility. Photo: Clariant
Oil Services.
wells are highlighted. It was discovered that these failures were
attributed to iron sulfide (FexSy) and zinc sulfide (ZnS) scale
deposition during flowback. Further, this article introduces the
industry’s first, innovative solution to control these types of ex-
otic scale effectively during fracturing and flowback.
The operator tried different mitigation options, including
increasing concentration and changing out the standard scale
inhibitor, among many, all of which were unsuccessful in pre-
venting well failures. As the cost accumulated in well re-entries
and associated mitigation options, a request was sent to Clariant
Oil Services to provide an effective, lasting solution.
The development of the chemistry has been covered ade-
quately in previous publications (Savin, et al. 2014; Wylde, et al.
2015). Readers are encouraged to check further into the unique
characteristics exhibited by this patented chemistry for dispers-
ing and inhibiting sulfide scales, in comparison to traditional
scale inhibitor products’ inhibition mechanisms.
FIELD SOLUTION AND DEPLOYMENT
For the field case history presented here, both the capital
expenses per well and the number of well re-entries for scale
mitigation increased. Several remediation chemistries were
eventually trialed, which provided only temporary relief from
the continuous sulfide scaling experienced in the wellbore and
across ESPs (electrical submersible pumps).
The operator requested a solution—to control iron and
zinc sulfide—to be delivered during the hydraulic fracturing
operation. Key performance indicators (KPIs) were devel-
oped between the operator and the service company, to align
on pass/fail criteria in the laboratory and field. These KPIs
included the following:
• Exceptional performance to inhibit iron and zinc sulfide
• Compatible with frac fluid (pad–acid and non-acid pads)
• Suitable adsorption and desorption characteristics (squeez-
able)
• Temperature and high-pressure (shear) stability
• Zero increase in H2S evolution during flowback.
The chemistry used, as described above, was proven in the
detailed testing protocols to be a viable sulfide inhibitor for
this hydraulic fracturing application. The use rate was rec-
46 AUGUST 2018 / WorldOil.com
ommended at an applied dose rate of 1 gallon per thousand
(GPT) in the pad and 0.4 GPT for the remainder of the 50
stages. Compatibility tests and subsurface performance tests
were carried out prior to the field application, showing excel-
lent compatibility with the frac fluids and a favorable adsorp-
tion–desorption (isotherm), and therefore an assumed field
squeeze performance, Fig. 3.
DEPLOYMENT RESULTS
The sulfide scale inhibitor additive used in the hydraulic
fracturing treatment resulted in control of all sulfide scale issues
downhole in the target wells. Well scaling health was determined
via zero fouling, combined with monitoring of well-produced
waters, which showed steady and consistent dissolved iron and
zinc concentrations. There was no increase in H2S evolution
during flowback. It was not possible to determine the residual
scale inhibitor concentration, due to the presence of high levels
of interfering chemical species in the flowback fluid. The pri-
mary culprit is believed to be the generic drag reducer chemical
additive employed throughout the treatment.
ESP run-times increased from a few weeks to several
months of continuous operation, with motor temperature
indicators and across-pump differential pressure transducers
indicating low or no scale development. In addition, several
ESP units were recovered for inspection topsides, where no
new significant sulfide scale deposition was identified within
any unit.
For wells equipped with pressure transducers downhole, it
was deduced that wellbore tubing was free from any new, sig-
nificant solids deposition.
The laboratory tests showed, and it was corroborated in the
field, that the new sulfide scale inhibitor technology reduced
the iron and zinc scale deposition rate to 99.9% (compared to
the previous untreated water), and met the KPIs set for perfor-
mance. The technology proved to be an excellent sulfide inhibi-
tor, acid and non-acid, frac pad-compatible, squeezable, and
temperature-and-high-shear-stable.
CONCLUSION
The new-generation sulfide scale control additive dosed into
the frac treatment package was very effective at controlling vari-
ous types of sulfide scales during the post-frac treatment pro-
duction phase. As a direct consequence of deploying the addi-
tive, the Permian basin operator gained the following:
• Economic benefit, with respect to continued production
and reduced downtime/deferred oil cost
• Economic benefit via savings made on well re-entry fre-
quency and remedial cleanup actions
• Reduced concerns of H2S evolution during flowback and
provided environmental and cost-savings benefits.
DR. CYRIL OKOCHA is a scale specialist for the global
innovation team within the business line, Oil Services, at
Clariant. Dr. Okocha has a background in geochemistry
from University of Newcastle upon Tyne and earned his
PhD in petroleum engineering from Heriot-Watt
University, both in the U.K . He conducted his post-
doctoral fellowship research in collaboration with
Clariant at Heriot-Watt University to develop the now-patented sulfide
scale inhibitor. Dr. Okocha is the author and co-author of several SPE
conference papers and three patents/patent applications.
WEB EXCLUSIVE: Visit WorldOil.com to view the references for this article.
 CLOSER.
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 TechTalk

Permian oil production

requires additional pipeline infrastructure
Further expansion of oil output in least mid-2019, exacerbated by growth recent production in the shale play has
the Permian basin is dependent on in the region’s oil production rate, antici- far surpassed the predicted 2.5 MMbopd
a number of pipelines being built or pated to hit 4.0 MMbpd by the beginning for 2018. According to the EIA’s Drill-
expanded. Here is a rundown of the of next year. So, for the next 12 months, ing Productivity Report, oil production
status of various pipeline projects in Permian operators will have to rely on reached 3.333 MMbpd in July, a 56,000-
the region. storage capacity and alternative trans- bpd increase over June.
portation methods to make up the dif- The Baker Hughes North American Rig
ference. Yet, given the shortage of trucks Count reported that there were 476 oper-
ENERGY WEB ATLAS and WORLD OIL STAFF and truck drivers, the trucking of oil, ating rigs targeting oil in July, compared
particularly over long distances, is not to 374 operating a year earlier. Based on
With regard to the short-term future expected to be a factor. This leaves rail as that report, the rig count in the Permian
of the Permian basin, through the rest the only reasonable alternative. There are basin accounts for 55% of all operating
of this year and into early 2019, it is now indications that rail capacity out of the rigs targeting oil in the U.S.
the consensus of the World Oil staff that region could be expanded to 300,000 According to Genscape, the Permian
activity will level off during second-half to 400,000 bopd. In addition, some local basin had 3.175 MMbopd of total take-
2018. Indeed, it is possible that anywhere sand mine terminals could be converted away capacity in March 2018, with out-
from a 10% to 20% drop in drilling and to alleviate rail congestion and boost going pipeline capacity at 2.725 MMbpd.
development work could occur in the capacity on the tracks further. Given that production has surpassed
second half. The reason is simple—there So, given the serious capacity situ- pipeline takeaway capacity in the past
just won’t be enough pipeline capacity ation, not to mention the possibility few months, existing pipelines are fall-
to handle the extra production that a full that flaring of associated gas output ing short. This leaves the region relying
activity rate would generate. may have to rise to 700 MMcfd to 800 heavily on new infrastructure develop-
Accordingly, building additional pipe- MMcfd, the pipeline infrastructure must ment to keep afloat.
line capacity in the Permian is job num- be expanded quickly. Accordingly, we
ber one. Already, counting all the projects feel it is important to feature the fol- SATISFYING DEMAND:
confirmed on the books, Permian pipe- lowing status report on Permian pipe- CURRENT AND PLANNED
line capacity could eventually total 7.0 line projecs from the Energy Web Atlas, PIPELINES
MMbopd. There also is eventual potential a division of our parent company, Gulf
for up to 9.0 MMbopd of Permian pipe- Energy Information. Existing pipelines. According to the
line capacity, if all goes well. But first the Energy Web Atlas, two pipelines have
pipelines on the books have to be built. It PERMIAN BASIN PRODUCTION gone online recently in the Permian basin
appears that a first wave of a half-dozen The EIA’s Annual Energy Outlook for to help alleviate the current strain on take-
pipeline projects will go online during 2018 forecasts that oil production in the away capacity in the play, Fig. 2. In the
2019, followed by a second wave of four Permian basin will experience the largest first project, Enterprise Products Partners
or more projects in 2020. growth of all U.S. shale plays, increasing LP completed the Midland-to-Sealy Pipe-
In the meantime, Permian pipeline 60% from an average 2.5 MMbpd in 2018 line that runs 416 mi from Midland, Texas,
capacity will be constrained through at to 4 MMbpd by 2030, Fig. 1. However, to Sealy, Texas It provides 450,000 bpd
of takeaway capacity from the Permian
basin to U.S. Gulf Coast markets.
Fig. 1. An overview of past, present and predicted oil production in the Permian basin and
other regions, 2000–2050. Source: U.S. Energy Information Administration. In the second project, Medallion Pipe-
line Company LLC has completed the
5 Delaware Express Pipeline that runs 95 mi
Lower 48 onshore crude oil production by region, MMbpd

History Projections
from Ward County, Texas, to Crane, Texas,
4 and has a capacity of 200,000 bpd. This
Southwest pipeline provides Delaware basin cus-
tomers with access to the Permian basin
3
Dakotas/Rocky Mountains long-haul takeaway pipelines, local refin-
eries and downstream markets.
2 In addition, some existing Permian
Gulf Coast basin pipelines are undergoing expansions:
• Magellan Midstream Partners LP
1
East Midcontinent and Plains All American Pipeline
West Coast LP own the BridgeTex Pipeline
0 that runs 400 mi from the Permian
2000 2010 2017 2020 2030 2040 2050 basin to U.S. Gulf Coast markets.

48 AUGUST 2018 / WorldOil.com SPONSORED CONTENT

 PERMIAN BASIN: ANALYSIS

The pipeline has a current capacity Fig. 2. Existing oil pipelines in the Permian basin. Source: Energy Web Atlas.
of 400,000 bopd and will be
expanded to 440,000 bopd.
• Energy Transfer Partners LP and
ExxonMobil own the Permian
Express 1 and Permian Express 2
pipelines that transport Permian
basin crude to both the Nederland
and Longview markets in Texas.
The system includes 700 mi of
pipeline with a joint capacity of
350,000 bopd. It will be expanded
300,000 bopd upon completion of
the Permian Express 3 Pipeline.
• Plains All American Pipeline LP
owns the Cactus Pipeline that runs
310 mi from McCamey, Texas, to
Gardendale, Texas, and transports
Permian basin crude to the Eagle
Ford JV Pipeline serving U.S. Gulf Fig. 3. Permian basin oil pipelines, planned and under construction.
Coast markets. The pipeline has a Source: Energy Web Atlas.
current capacity of 390,000 bopd,
and the system will be expanded to
965,000 bopd.

Planned pipelines. According to the

Energy Web Atlas, several midstream
companies are planning new pipeline
infrastructure and expansions to develop
additional infrastructure, to meet take-
away demand in the Permian basin, Fig. 3.
Some major planned pipeline projects
include:
• Phillips 66 and Andeavor have
proposed the Gray Oak Pipeline
(Fig. 4) that will run 600 mi from
Reeves County, Texas, to Crane
County, Texas. The pipeline will
provide producers and other
shippers the opportunity to secure
crude oil transportation from West
Texas to the destination markets
of Corpus Christi, Freeport, and
Houston, Texas. The pipeline will
have an initial capacity of 800,000
bopd and a maximum capacity
of 1.0 MMbopd. The pipeline is
scheduled for completion in fourth-
quarter 2019. On July 30, 2018, the
partners announced that the line
will cost $2 billion to build.
• Phillips 66 has proposed the
Reeves-Odessa Origination Project
(Rodeo Pipeline) that will run 130
mi from Reeves County, Texas, to
terminals in the Odessa-Midland
area. The pipeline will have an initial
capacity of 130,000 bopd and a
maximum capacity of 430,000
bopd. The pipeline is scheduled
to start construction in third-
quarter 2018.
• Enterprise Products Partners LP
plans to convert one of its natural
gas liquids (NGLs) pipelines that
runs from the Permian basin to
the Texas Gulf Coast to crude
oil service. This conversion will
provide the company with a
total crude oil takeaway capacity
of over 650,000 bpd from the
Permian basin to a crude oil hub
in Houston, Texas. Enterprise will
convert one of its three existing
NGL pipelines that stretch from
the Permian basin to the Texas
Gulf Coast, which includes the
Seminole Blue, Seminole Red
and Chaparral pipelines. The
conversion is scheduled for
completion in first-quarter 2020.
• Magellan Midstream Partners LP
has proposed the Crane to Three
Rivers Pipeline that will run 375
mi from Crane, Texas, to Three
Rivers, Texas. The pipeline will
have an initial capacity of 350,000
bopd and a maximum capacity
of 600,000 bopd. Shippers will
have the option to deliver crude
oil and condensate from the Three
Rivers area to the Houston area
via a new 200-mi pipeline, or
to the Corpus Christi area via a
new 70-mi pipeline. The project,
initially scheduled for completion
in fourth-quarter 2019, is currently
delayed.
• Magellan Midstream Partners LP
and Plains All American Pipeline
LP have launched an open season
to expand the existing BridgeTex
Pipeline through enhancements
of existing pumps and related
equipment in Bryan, Texas. The
expansion will add 40,000 bopd
of capacity, bringing total pipeline
capacity to 440,000 bopd.
The expansion in scheduled for
completion in second-quarter 2019.
• Energy Transfer Partners LP (ETP)
and ExxonMobil have proposed
the Permian Express 3 Pipeline
Expansion that will utilize existing

SPONSORED CONTENT World Oil® / AUGUST 2018 49

 TechTalk
Fig. 4. The planned Gray Oak Pipeline in the Permian basin. Source: Energy Web Atlas.
Fig. 5. Epic Oil Pipeline is under construction in the Permian basin. Source: Energy
Web Atlas.
pipelines from the Midland and
Delaware basins to Nederland,
Texas. The expansion will provide
producers with new crude oil
takeaway capacity to multiple
markets, including the 26-MMbbl
ETP Terminal in Nederland.
Phase I of the project went
online in fourth-quarter 2017
and has a capacity of 100,000
bopd. Once all phases are
complete, the expansion will
add 300,000 bopd of capacity
to the existing network.
Pipelines under construction.
According to the Energy Web Atlas, sev-
eral midstream operators have started
construction already on new pipe-
line infrastructure and expansions in
the Permian basin, with many of them
expected to go online in 2019.
Some major pipeline projects in devel-
opment include:
• Epic Pipeline Co. LLC is developing
the EPIC Crude Pipeline (Fig. 5)
that will run 700 mi from Orla,
Texas, to Corpus Christi, Texas.
The pipeline will provide takeaway
50 AUGUST 2018 / WorldOil.com
capacity from the Permian
and Eagle Ford basins to both
refining and export markets
in, and around, Corpus Christi,
Texas. It will run parallel with the
previously announced EPIC NGL
Pipeline. That line will have an
initial capacity of 590,000 bopd
and is scheduled for completion
in second-quarter 2019. As of late
July 2018, Epic had successfully
completed its first open season for
the project.
• Andeavor is developing the Conan
Crude Oil Gathering Pipeline
System that will run 130 mi from
Lea County, N.M., to a proposed
terminal in Loving County, Texas.
There, the gathering system
will interconnect with long-haul
pipeline carriers. The pipeline
will have an initial capacity of
250,000 bopd and a maximum
capacity of 500,000 bopd. The
gathering system was scheduled
for completion in mid-2018.
• Magellan Midstream Partners LP is
developing the Wink Pipeline that
will run 60 mi from Wink, Texas, to
Crane, Texas. The pipeline will offer
direct service from the Delaware
Basin to the existing Longhorn
Pipeline, which provides crude oil
and condensate transportation
service to the Houston and Texas
City refining complex and marine
export facilities. The pipeline will
have an initial capacity of 250,000
bopd and a maximum capacity
of 600,000 bopd. The pipeline
is scheduled for completion in
second-quarter 2019.
• Plains All American Pipeline LP is
developing the Cactus II Pipeline
that will run 515 mi and connect to
the existing 310-mi Cactus Pipeline
System. The pipeline will run from
Orla, Texas, to Corpus Christi,
Texas, and will have a capacity
of 575,000 bopd. The expansion
is scheduled for completion in
fourth-quarter 2019.
Potential obstacles. While many pipe-
line projects are on the horizon in the
Permian basin, some have experienced
delays, due to lack of shipper support
that could prevent the pipelines from ever
breaking ground.
Magellan Midstream Partners LP
announced that they are putting the
proposed 375-mi Crane-to-Three Rivers
Pipeline on hold, after an unsuccessful
open season failed to gain shipper com-
mitments. The pipeline could provide a
potential 600,000 bopd of takeaway
capacity in the region, but the company
stated that it won’t proceed with the proj-
ect until it receives satisfactory interest
from potential customers.
In May, Buckeye Partners LP unex-
pectedly cancelled an open season for
the proposed 513-mi South Texas Gate-
way Pipeline. The line would run from
Wink, Texas, to Corpus Christi, Texas, and
deliver over 600,000 bpd of crude oil
and condensate from the region to U.S.
Gulf Coast markets. The company has
yet to release a reason for the project’s
sudden suspension and has, instead,
announced plans to focus on the pro-
posed South Texas Gateway Terminal in
Corpus Christi.
While no plans have been made pub-
lic that either the Crane-to-Three Rivers
Pipeline or South Texas Gateway Pipe-
line are cancelled, the prospect of these
shelved projects being built doesn’t
seem promising.
Editor’s note: The Energy Web Atlas is a product
of Gulf Energy Information, the parent company
of World Oil.
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December 5–6, 2018 | Norris Conference Centers - City Centre
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Resurgence of Shale
Join the discussion and hear the latest on water
management and E&P technology at ShaleTech 2018!
ShaleTech 2018 is bringing the industry together to explore the latest
developments in E&P technology and water management. With an advisory
board including representatives from Apache, ConocoPhillips and Marathon
Oil, the conference will feature two days of operator-oriented presentations
and networking opportunities.

Conference Topics by Day

DAY ONE: DAY TWO:

E&P Technology
Day One will feature real-world
case studies and discussions
on the key technological
developments driving the industry.
Water Management
Day Two will bring the key
players in water management
together for a day of collaboration
and knowledge sharing. Hosted
with the Permian Basin Water
Management Council.

Questions:
Contact Myron Malek, Event Manager - Upstream,
at Myron.Malek@GulfEnergyInfo.com or +1 (713) 520-4470.

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 SHALETECH REPORT / PRACTICES & ADVANCES

Enhanced understanding
improves “child well” performance
In U.S. shale fields, operators Fig. 1. Outlines of 10 unconventional plays selected for the parent/child
well interaction study.
are attempting to improve CANADA
infill well performance. In the WA Bakken ND
Eagle Ford, child wells now MT MN
ME
account for about 75% of OR
ID SD WI
MI VT
NH
new completions. Infill drilling WY
NE IA
NY MA
CT RI
Gulf of
Maine
Niobrara Marcellus PA
is ramping up in the Permian, UT IL
IN
OH
NJ
WV
which hosts half of all U.S. NV DC MD DE
CO KS MO
KY VA
Woodford
drilling. CA Fayetteville
TN NC
OK
AR
NM
Barnett AR
MS SC NORTH
Wolfcamp and AL
GA ATLANTIC
 GARRETT LINDSAY, GRANT MILLER, Bone Springs TX Haynesville
LA OCEAN

TAO XU, DAN SHAN and JASON BAIHLY, Eagle Ford FL

Schlumberger M E X I CO Gulf of Mexico

Table 1. Fracture hit breakdown across five major unconventional plays.

The transition to infill development in Bakken Eagle Ford Haynesville Woodford Niobrara
the shale fields has been challenging, and Positive hit - Long term 17% 9% 20% 2% 0%
production rates are highly variable and Positive hit - Short term 33% 14% 38% 2% 6%
unpredictable. This is due to depletion Positive hit total 50% 24% 58% 4% 6%
No change 35% 36% 24% 32% 38%
effects of the parent well that can cause
Negative hit total 15% 41% 19% 64% 56%
fracture hits and interwell communica- Negative hit - Short term 7% 13% 5% 20% 19%
tion among child and parent wells (SPE Negative hit - Long term 6% 17% 5% 41% 31%
174902). In reservoirs with significant Shut-in post offset hit 2% 10% 9% 3% 6%
depletion caused by parent wells, predict- Instances included 649 1,210 366 259 32
ing performance of new infill wells can Original No. of instances 827 1,561 449 283 49
be difficult. Although operators expect Instances with invalid data 178 351 83 24 17

infill wells to perform comparably to, or

better than, existing parent wells, the re-
ality is that infill wells often produce be-
low established offset parent well decline
curves. This scenario adversely impacts
future reserve estimates and, ultimately,
field economics.
BASIN STUDIES
To increase the understanding of the
output relationship between parent and
child wells, the service provider studied
3,000 fracture hits across five major un-
conventional plays, Table 1. The analysis
was performed to better understand par-
ent well challenges in each individual field
(SPE 180200). The study determined
that fracture interference had different
effects in different basins, in terms of se-
verity and whether the interference was
positive or negative to parents. In most
cases, fracture hits on existing parent
wells resulted in a positive or no change of
trend in the production of the parent well.
However, in the Woodford and Niobrara,
fracture hits on existing parent wells re-
sulted in a negative or no change trend in
the parent well. The Eagle Ford was split,
with an approximate 50/50 chance that a
fracture hit will be positive or negative to
parent well production.
INFILL PERFORMANCE
Historically, there has been little re-
search on basin-wide trends for infill well
performance, on average, compared with
their corresponding parent wells. To bet-
ter understand child well performance
issues, the service company conducted
a comprehensive study in 2017 (SPE
189875) across 10 major U.S. uncon-
ventional plays, including Bakken/Three
Forks, Barnett, Bone Springs, Eagle Ford,
Fayetteville, Haynesville, Marcellus, Nio-
brara, Wolfcamp and Woodford, Fig. 1.
The study used public data from IHS
Enerdeq, reported through late 2016, to
design a spatial, statistical approach with
key production indicators, to evaluate the
difference in production performance
between the original parent well and new
child wells. While the study was not in-
tended to present a specific protocol for
accurately predicting infill well produc-
tion, it does use a logical workflow that
provides scientific-based inferences on
production performance of infill wells
versus pre-existing parent wells. The con-
clusions present alternative strategies and
World Oil®/AUGUST 201853
SHALETECH REPORT / PRACTICES & ADVANCES

Fig. 2. The study suggests longer laterals and larger frac volumes are required in offsets to achieve production rates similar
to parent wells.

100

90 B12 volume B12 volume/lbm/ft

80

70

60
Iterations, %

50

40

30

20

10
0
Child Parent Child Parent Child Parent Child Parent Child Parent Child Parent Child Parent Child Parent Child Parent Child Parent
Wells Wells Wells Wells Wells Wells Wells Wells Wells Wells
Bakken Barnett Bone Springs Eagle Ford Fayetteville Haynesville Marcellus Niobrara Wolfcamp Woodford

technologies that may increase the poten- observe depletion effects. A 1,000-ft ra- hole versus cased-hole, number of stag-
tial of underperforming infill wells. dius was studied primarily for each mov- es, perforation cluster spacing and fluid
The study examines the effects of reser- ing window, followed by 1,000-1,500-ft, type, differences in flowback, production
voir depletion and fracture behavior on in- 1,500-2,000-ft and 2,000-2,500-ft radii, to practices or artificial lift techniques. Ad-
fill production. These factors have become investigate changing effects with distance. ditionally, production indicators used as
increasingly important, as operators push For wells with thick or stacked pay, a 100-ft the comparative tool in the analysis were
the envelope of unconventional develop- limit was assumed in the depth direction, not intended to, and should not be used
ment to maximize return on investment. even though vertical communication may to, directly correlate with differences in
Fluctuating commodity prices and service be shorter or longer, depending on fracture expected reserve volumes.
costs, and the economics of single-well ver- height, vertical permeability or fracture
sus pad drilling, must be considered when conductivity. Trends across basins. Despite reser-
calibrating expectations. A best, consecutive 12-month volume voir heterogeneity and variations in the
(B12) was calculated for every well as a number of iterations, ranging from 31 for
Statistical moving-window work- comparative tool for each iteration. For the Bone Springs to 1,661 for the Eagle
flow. To consistently evaluate infill/par- dry gas basins, a B12 gas volume was cal- Ford, the study identified key trends
ent well production, a statistical moving- culated, and for oil basins, a B12 oil vol- across each specific basin, Fig. 2. The
window workflow was implemented to ume was determined. A B12 boe volume depletion effects from parent wells and
study thousands of wells in a relatively was calculated for basins with significant intercommunication between child wells
short time-span. The approach analyzes gas and oil production. can result in lower-than-expected produc-
each well, compared to all surrounding The parent well B12 volumes were tion from child wells. A first glance at a ba-
wells, within a specified three-dimen- compared to the average B12 volumes of sic B12 production comparison indicates
sional radius to enable evaluation in three the child well(s) in each iteration, and then there is an approximately 50% chance that
directions. Distances between wells were compared at different distances. To adjust a child well will outperform a parent well.
measured from the midpoints of laterals, for other possible drivers, production was However, adjusting production for avail-
as identified from public deviation sur- normalized by total proppant pumped and able completion information suggests
vey data. This method takes into account lateral length for each iteration, as these that larger proppant volumes and longer
different landing zones for the laterals, were accessible through public sources. laterals in child wells may be necessary
especially in plays with thick or stacked Only producing wells with reported lat- to achieve similar production rates to the
pay intervals, such as the Permian’s Bone eral lengths and total proppant volumes parent wells, which can have negative eco-
Springs and Wolfcamp. were included in the data set, to ensure an nomic implications for operators.
Each moving-window iteration includ- accurate comparison when looking at raw Using 1,000 ft as the radius of in-
ed a preexisting parent well and new child versus normalized volumes. vestigation, parent well B12 produc-
well(s) within a specified radius. Parent The study assumed that the geology tion slightly outperforms child well(s)
wells were defined as having a minimum and reservoir properties in each moving in seven plays (Eagle Ford, Fayetteville,
of two years of production history with window were the same. Also, because Haynesville, Marcellus, Niobrara, Wolf-
at least one child well that produced a the information is not available in public camp and Woodford), while in the Bak-
minimum of one year. These cutoffs were sources, the study did not consider all ken and Barnett formations, there is
implemented to allow adequate time to completion components, such as open- roughly an equal chance that the parent
54 AUGUST 2018 / WorldOil.com
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SHALETECH REPORT / PRACTICES & ADVANCES
form the offset. However, when normal-
izing B12 production lateral length and
proppant volume, parent wells outperform
child wells 70% to 80% of the time. These
trends strengthen the implication that op-
erators have been successful at increasing
the potential of infill wells by pumping
larger treatment sizes; however, it may in-
crease the risk of detrimental fracture hits
on parent wells while increasing the costs
associated with child well completions.
56 AUGUST 2018 / WorldOil.com
Two of the biggest drivers behind poor
child well performance are the depletion
effects of the parent well and the inter-
well communication between offsets,
as they compete for the same resources.
One would expect that the child wells fur-
ther from the parent well would be better
performers; however, this was difficult to
conclude from the evaluation, because it
was masked by the effect of the interwell
communication between child wells.
PERMIAN BASIN
With increased infill drilling in the
Permian basin, operators will soon be
encountering the above outlined issues.
One of the examples is the Bone Springs,
which flagged 31 parent/child well sets.
Here, the situation is unique, in that child
wells perform better than parent wells
65% of the time on a non-normalized
basis at 1,000-ft radius. Normalized prop-
pant volumes reflect the same trends as in
other plays, meaning that a given prop-
pant concentration doesn’t deliver as
much oil in the child well as it did in the
parent well. However, because proppant
loading increased, likely leading to im-
proved child well performance, child well
production on a non-normalized basis is
on par with, or better than, that of the par-
ent wells across the data set.
At first glance, the distances between
parent and child wells doesn’t appear to be
as significant in the Permian as in the other
basins. However, this may be because there
are fewer iterations, and therefore less data
for evaluating parent versus child wells, or
because the average well spacing between
child wells is larger than in the other basins.
It is important to note that the completion
design has improved continuously in the
Bone Springs since 2012, so each genera-
tion of wells—regardless of child or par-
ent—performs better than the previous
generation. The Bone Springs is fairly new
compared to other basins; therefore, the
depletion effects aren’t as severe, and major
child development hasn’t begun.
Well performance numbers are flipped
at 1,000-ft spacing in the Wolfcamp play,
which has 82 parent/child sets. Parent
wells perform better than the child wells
66% of the time when non-normalized,
and nearly 80% of the time when produc-
tion is normalized with proppant volumes
and lateral length. Time, an indicator of
depletion, appears to play an important
role, because after more than 24 months
between child well and parent well drill-
ing, there is a significant drop in child well
production versus parent well production.
As in the Bone Springs, proppant volume
increases over time in the Wolfcamp like-
ly account for production improvements
observed in the parent wells.
IMPROVING THE ODDS
Engineering experts are working on
technologies and best practices that
mitigate the effects of depletion and in-
terwell communication on child well
 PRACTICES & ADVANCES / SHALETECH REPORT

performance. They also are improving
reservoir models to better account for
the real impact of infill wells to fully un-
derstand critical timing, spacing, and job
sizes, to solve these dynamic challenges
related to field development planning in
unconventional basins. The following
strategies are suggested to improve infill
development campaigns:
• From a purely technical standpoint,
drilling and completing all wells in
a given area at the same time would
be ideal, but is economically and
operationally unrealistic, given pro-
duction requirements for holding
leases in U.S. unconventional plays.
However, completing wells next to
ing outward from there also could well spacing can be adjusted ac-
reduce the potential negative impact cordingly to maximize the return
caused by parent well depletion on on capital deployed, as operators
non-adjacent child wells. don’t want to over- or undercapital-
• Optimizing completion designs by ize an area.
modeling the depletion effects can • Additionally, the use of near-well-
be a viable predictive tool for infill bore and far-field chemical diver-
drilling, and proppant volumes and sion techniques can help increase
Fig. 3. Fracture geometry service increases child well production, up to 53%.
160,000
140,000
120,000
100,000 C
Cumulative oil, bbl

each other on lease boundaries to

equalize the drainage patterns could 80,000
53%
B
minimize the depletion effect when
Up to 53% improvement over local cumulative oil type curve
infill wells are completed. It is also 60,000
important to recognize that timing
of the infill drill will impact the child 40,000
well performance, so job designs
and even well spacing will need 20,000
to change, as time to infill drilling
0
changes. Completing the well clos- 0 1 2 3 4 5 6 7 8 9 10 11 12
est to the parent well and then work- Production, months

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RELIABLE CONNECTIONS DOWNHOLE.

PERFORATING SYSTEM

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CJENERGY.COM/GAMECHANGER

World Oil® / AUGUST 2018 57

SHALETECH REPORT / PRACTICES & ADVANCES
child well production while limiting
interwell communication. In the
Eagle Ford, the Broadband Shield*
fracture-geometry control service
has been successful in encouraging
fracture propagation in new un-
drained rock of child wells, while
reducing negative fracture hits on
the parent wells. Figure 3 shows a
15%-to-50% increase in child well
production when using BroadBand
Shield service versus the average
of the other child wells in the area
(URTeC 2670497).
• In some cases, refracturing the par-
ent well before completing the
offset child wells can boost pro-
duction in both the parent and
child wells.
• Enhanced oil recovery (EOR) also
may increase production in both
the parent and child wells. EOR
applications using natural gas in-
jection have delivered positive pro-
duction results in the Eagle Ford for
EOG; nevertheless, the technique
needs further testing in the uncon-
ventional sector.
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to maximize reservoir contact for a variety of applications.
58AUGUST 2018/WorldOil.com
*Mark of Schlumberger
GARRETT LINDSAY is a senior
production engineer for
Schlumberger. His 11 years of
experience have been focused
on unconventional plays across
North American and
international basins. His
experience includes production/completion
evaluations, integrated reservoir studies,
refracturing, and candidate selection. Mr.
Lindsay has a BS degree in petroleum
engineering from Texas A&M University.
GRANT MILLER is a production
engineer with five years of
experience in North American
and international plays. His
focus has been on
unconventional and tight
reservoir production analysis,
with emphasis on completion optimization and
production enhancement in existing wells.
Mr. Miller holds a BS degree in petroleum
engineering from the University of Texas
at Austin.
TAO XU is a production
stimulation engineer with
Schlumberger. His five years of
experience have been in
technical and sales roles,
focused mainly on North
American unconventional
hydraulic fracture modeling, completion and
production optimization, and operations. Mr. Xu
COMPLETION TECHNOLOGY APPLICATIONS
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completion systems can improve your well performance.
has a BS degree in petroleum engineering
from China University of Petroleum and a MS
degree in petroleum engineering from the
Colorado School of Mines.
DAN SHAN is a principal
reservoir engineer with
Schlumberger. She has 17
years of industry experience,
primarily in reservoir simulation
and production analysis for
conventional and
unconventional resources. She holds a BS
degree in chemical engineering from Tsinghua
University, China, and an MS degree in
petroleum engineering from the University of
Texas at Austin. Mrs. Shan is a registered
Professional Engineer in the State of Texas.
JASON BAIHLY is a commercial
and risk assessment manager
for Schlumberger. In this role, he
develops alternative business
models to help operators
perform projects, with minimal
impact on their capital budgets
for new, drilled-but-uncompleted (DUC), and
refracturing applications. Mr. Baihly has more
than 15 years of experience focused in tight rock
plays, including sands, carbonates and shales.
He has also worked to deliver pressure pumping
services, completions, consulting services, asset
management and integration. Mr. Baihly has a
BS degree in civil engineering from the South
Dakota School of Mines and Technology and an
MSc degree in petroleum engineering
management from Heriot Watt University in
Edinburgh, Scotland.
PrimeSET Liner Hanger
Cemented Liner Completions
 SHALETECH REPORT / PRACTICES & ADVANCES
Copper alloy coupling reduces
rod failures, boosts well efficiency
An advanced sucker rod coupling is
optimizing virtually every aspect of rod lift
efficiency, and increasing productivity in
unconventional plays.
ŝŝCAROLYN CURRAN, DIANE NIELSEN, WILLIAM NIELSEN
and RICHARD CASH, Materion Corp., USA
The deviation and side loading in deep, unconventional
wells presents unique challenges for sucker rod pumping,
when rods flex during the downstroke of the pumping unit
and sucker rod couplings wear into the inner wall of the pro-
duction tubing. For example, a well pumping at 6 strokes/
min. will cycle 8,640 times per day and any given point on the
sucker rod string can travel up to 23 miles/day. With so much
potential contact between the sucker rod string and produc-
tion tubing, there is ample opportunity to reduce frictional
drag and system loading. Tubing leaks and coupling failures
have historically accounted for nearly half of the failures in rod
pump wells, with the root cause of these leaks frequently iden-
tified as coupling on tubing wear.
COPPER ALLOY COUPLING
A standard spray metal coupling is abrasive to steel produc-
tion tubing because of its hard-nickel coating. While standard “T”
couplings are not coated, nor as hard as spray metal couplings,
tubing wear occurs by a steel-on-steel galling mechanism. The
T couplings also are more susceptible to corrosion. To alleviate
these effects and associated tubing wear, Materion developed a
new low-friction, high-strength copper alloy. The ToughMet
coupling is made of highly durable spinodal bronze composed of
copper, nickel and tin, Fig. 1. The specialized metallurgical com-
position is naturally anti-galling to steel production tubing. It fea-
tures high-impact strength, offers improved corrosion resistance
and can reduce overall friction on sucker rod strings.
Reducing workover frequency. The new sucker rod cou-
plings were successfully qualified initially in deviated wells with
higher-than-average rates of failure. Hess Corp., one of the larg-
est producers in the Bakken, more than tripled its mean time
between failures after introducing the couplings to deviated sec-
tions of their wells. The company went on to include the cou-
plings in its standard production practice.
Permian basin. Discovery Natural Resources LLC operates
more than 1,000 wells in the Permian basin. In some of their
extremely deviated wells, rod-on-tubing wear was causing fail-
Fig. 1. The copper alloy couplings reduce overall friction on sucker
rod strings.
ures every 60 to 90 days. After introducing the copper alloy
couplings, the company reported one well running for more
than 385 days without failure. Clearly, both operators were
able to significantly reduce workovers and effectively improve
production efficiencies by utilizing a sucker rod coupling that
actively mitigates coupling-on-tubing wear.
ADDITIONAL EFFICIENCY GAINS
In addition to reducing workover costs in deviated wells,
there is a wide range of unanticipated benefits of using the new
couplings. Identifying improvements in well performance, in
addition to reduced tubing failures, was of interest to eight sepa-
rate operators. Between these different companies, 11 wells are
running entire sucker rod strings of ToughMet couplings to in-
vestigate and quantify benefits observed by reducing frictional
drag in the well. After analyzing their data, the following obser-
vations and predictions were made on wells modified to run
entire sucker rod strings of the new couplings, where no other
design alterations are made:
• 88% of wells experienced an increase in oil production.
• 93% of wells experienced increased downhole stroke.
Downhole stroke is usually much shorter than the stroke
length measured at the surface, because rods stretch, contract
and deflect. Lowering frictional drag on the sucker rod string al-
lows it to travel more smoothly and with more velocity, translat-
ing into greater downhole stroke. Capturing more pump stroke
improves compression and allows the well to operate at maxi-
mum capacity.
• 87% of wells experienced decreased fluid level above
the pump. Decreasing the fluid level is desirable and indi-
cates efficient sucker rod pumping.
World Oil® / AUGUST 2018 59
SHALETECH REPORT / PRACTICES & ADVANCES

Fig. 2. Probability chart showing population percentiles for The couplings also may extend the life of surface equipment
determining the coupling’s potential impact on production rates.
It’s 88% probable that a well will have improved oil production
and sucker rods, as indicated by smoother pump cards and re-
with a mean increase of 37%. duced loads on the gearbox and polished rod. Minimizing fric-
tional drag will likely improve a well’s operating efficiency and
99 deliver associated power savings.
Mean 0.3732 The following case studies detail observations made to im-
95 St Dev 0.3221 95
N 10 provements in overall efficiency when running entire sucker
90 AD 0.207
P-value 0.816
rod strings of copper alloy couplings.
80
Well popuation,%

70 75
60 Case study 1. A Permian basin operator (B), installed 126
50 50 couplings in Well 1 during August 2017. Through April 2018,
40
30 the well experienced overall improved oil production and
25 downhole stroke, while pump fillage stayed static before, and
20
10 12.35 after, coupling installation. Oil production increased an aver-
5 5 age 35 bpd to 145 bpd, compared to 110 bpd with spray metal
couplings. Likewise, downhole stroke length increased by an
90.3 %
15.6 %

37.3 %
15.7 %

59 %
0%

1 average of 49 in. to 175 in., compared to 126 in. with spray

-100 -50 0 50 100 150
Change in oil production,% metal couplings. Loads on the surface equipment also reduced
significantly. Gearbox loading was designed to run at 76.5%
Fig. 3. Probability chart showing population percentiles to predict of its suggested maximum load and averaged 74.6% with the
the coupling’s potential impact on gearbox loading. It’s 98% spray metal couplings. After the new couplings were installed,
probable that a well will experience gearbox load reduction with a
mean decrease of 16%. the average gearbox load averaged 63%, which was 12% lower
than the spray metal average or 14% below the designed target.
99 Average peak polished rod load decreased by over 8,500 lb, a
Mean -0.1606 97.5 27% improvement. This well continues to run the couplings,
95 St Dev 0.08154 95
N 15 but failed after 8.3 months in May 2018, due to a rod part. After
90 AD 0.202
P-value 0.850
2,560,320 cycles, the couplings showed minimal wear, and the
80 serial numbers on the faces were still visible. All of the couplings
Well popuation,%

70 75
60 were reinstalled.
50 50
40
30 Case study 2. A Permian operator (B) installed an entire suck-
25 er rod string, consisting of 186 couplings, into horizontal Well
20
10 2 during August 2017. This well ran on rod pump, with both
5 5 spray metal and T couplings, prior to installing the new-style
copper alloy couplings.
-29 %

-22 %

-16 %

-11 %

-0 %
-3 %

1 Historically, it had failed every 6 to 10 months, due to a tub-

-100 -40 -30 -20 -10
Change to gear box loading,%
• 81% of wells experienced improved pump fillage. Opera-
tion is more efficient if the pump is filled with fluid, which
lowers electrical power usage.
• 98% of wells experienced gearbox load reduction. Loading
on the gearbox is related directly to power requirements neces-
sary to operate a well on rod pump. The gearbox drives the pol-
ished rod and provides the torque to rotate the counterweights.
• 95% of wells experienced peak polished rod load reduc-
tion. The polished rod holds the entire weight of the sucker
rod string below, the weight of the fluid and the added inertial
effects as the unit reciprocates. Frictional drag on the sucker
rod string increases the load on the polished rod.
• 93% of wells experienced improved system efficiency.
Higher system efficiency indicates the well is using less power
for more fluid production, and the costs of operation are di-
rectly related to this metric.
The data support the hypothesis that the new copper al-
loy couplings not only reduce tubing wear, but also minimize
frictional drag on the sucker rod string. When the sucker rod
string can travel more smoothly, wells are able to capture lost
downhole stroke and return more efficient fluid production.
60 AUGUST 2018 / WorldOil.com
0 10
ing leak or rod failure. During workover, the same 1¾-in. pump
was rebuilt and reinstalled and fiberglass rods, tubing rotators
and rod rotators and guides were maintained. About 50% of the
L80 production tubing was also replaced during the workover.
The pump was set in the curve at 6,656 ft and side loads average
240 lb. The designed stroke length was 130 in., and the well is
running at seven strokes per min. on a variable speed drive. Af-
ter the new couplings were installed, this well has been running
for more than a year without incident.
Well efficiency improvements. During the first six months of
operating with the new couplings, oil production averaged
130.5 bpd, compared to 110 bpd prior. When Well 2 was run-
ning with spray metal and T couplings, the downhole stroke
length was 132 in. versus a 130 in. design. After the new full
string of couplings was installed, the well’s downhole stroke re-
corded between 150 in. and 155 in., gaining an additional 18 in.
to 23 in. Pump fillage ran between 92% and 99.9%, compared to
90% before. Likewise, loads on the well’s gearbox, as a percent-
age of its designed max load, changed from 84% down to 59%-
64%, suggesting possible decreased power usage and potential
extended gearbox life. Lastly, the peak polished rod load aver-
aged more than 3,000 lb below the historical average.
In April 2018, the operator indicated that the well’s fluid
levels were rising because of fracing nearby, therefore data
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SHALETECH REPORT / PRACTICES & ADVANCES

obtained during this time period have not been used to evaluate
the performance of the well.
Case study 3. In January 2018, a different West Texas opera-
tor (C), installed an entire sucker rod string consisting of 456
copper alloy couplings in an 11,411-ft Permian vertical Well 3.
This is a lower-producing well that previously ran spray metal
and T couplings. Historically, its failure frequency was an aver-
age 119 days, due to various failure modes. Upon workover, the
same 1¼-in. pump was reinstalled, and no tubing rotators, rod
rotators, or rod guides were implemented to maintain the same
well design.
Well efficiency improvements. After a month of run time, re-
duced friction and loading data were observed alongside in-
creased production, effective net stroke length and pump fil-
lage. The operator noted the following comparisons between
the well’s prior performance with spray metal and T couplings
and the current performance with ToughMet couplings:
• Oil production increased from 19 bpd to 22 bpd (16%).
• Gearbox loading declined from 87% to 77%.
• Pump stroke improved from 70 in. to 77 in. (10%).
• Pump fillage increased from 80% to 100%.
• Pump friction lessened from 987 lb to 776 lb
(21% decrease).
• Pump volume efficiency increased from 55% to 64%.
• Structural unit loading was 2% lower with copper
alloy couplings.
• Maximum rod loading was 4% lower with copper
alloy couplings.
After two months of run time, the variable frequency drive
was removed and replaced with a pump off controller, because
the well started to fight gas interference. Now, the well shuts
down and idles whenever pump fillage falls below 60%, to allow
the wellbore to fill.
After three months of run time, the operator reported that
oil production averaged 19 bpd, which is equal to the histori-
cal production rate. However, because the well is now operating
just 14.6 hr/day, compared to 24 hr/day with the previous de-
sign, fluid production cannot be validly compared. Despite this,
other benefits were measured:
Fig. 4. Probability plot with population percentiles to deduce the
coupling’s potential impact on average system efficiency. It’s 93%
probable that a well will experience improved system efficiency
with a mean increase of 37%.
99
Mean 0.3660
95 St Dev 0.2524
90 N 11
AD 0.455
80 P-value 0.216
Well popuation,%
• Downhole stroke improved even further to 80-85 in.
from 70 in. Similar wells in the field were only capturing a
70-75 in. pump stroke.
• Pump fillage was 100% when the well was not affected by
gas interference.
• Pump volume efficiency improved to 76%, compared to
55% before.
• Structural unit loading decreased to 85%, compared to
90% before.
• Gearbox loading increased slightly to 81% but was still
below pre-copper alloy averages.
• Maximum rod loading decreased to 97%, compared to
114% before.
In April 2018, Well 3 failed due to a broken rod likely caused
by paraffin build up. During workover, the couplings showed no
wear and were reinstalled. Performance updates will be gathered
and averaged over a longer period, as the well continues to run.
Case study 4. In February 2018, another Permian operator
(D) installed 286 copper alloy couplings in a 9,200-ft horizontal
well. Prior to new coupling installation, Well 4 was operating
at 6 SPM on a variable speed drive with spray metal couplings,
fiberglass and steel rods and L80 production tubing. This well
did not use rod rotators or rod guides. The operator noted that
this well fights gas interference and experiences rod buckling in
the bottom section of the sucker rod string. To help alleviate gas
interference issues, Well 4 is designed to shut off when pump
fillage falls below 70%.
Historically, the daily well run time recorded between 20-
45%, pump fillage was 81-85% and oil production was 26 bpd.
Gas averaged 35 Mscf per day and water averaged 25 bpd. Upon
workover, 17 spray metal couplings could not be broken out.
However, no other design changes were made to the well, when
the new-style couplings were implemented.
Well efficiency improvements. After 2½ months of operation,
the operator was surprised to see daily run time double to 60-
80% for Well 4. The run time/day increased with the copper
alloy couplings, because typical pump fillage was 99.5% and
thus remained above the 70% trigger point for shutting the
well off more often. The operator suggests that the low-friction
couplings have helped to alleviate the buckling in the bottom
section of the rod string, allowing for improved compression in
the pump, better plunger movement, greater pump fillage and a
faster recovery rate. The oil production rate increased 15% to 30
bpd. Gas and water averaged 49 Mcfd and 23 bpd, respectively.
The operator noted that Well 4 had not produced 30 bpd since
October 2017.
95
Case study summary. The early results from these field trials
show that changing out standard couplings to copper alloy cou-

70 75 plings has a positive impact on well performance. The statistics

60 suggest that the new couplings have increased or accelerated the
50 50
40 oil production rate 21% on average in these wells. The statis-
30
25
tics also confirm the hypothesis that the copper alloy couplings
20 allow wells to capture extradownhole stroke length, increase
10
7.5
pump fillage, decrease fluid levels, minimize gearbox wear and
5 5 alleviate loads on the sucker rod string.
Three probability charts express the likelihood that a well
20 %

54 %

78 %
-5 %

37 %
0%

1
-50 0 50 100 150 will experience improved performance metrics when install-
Change to average system efficiency, % ing the new copper alloy couplings, Figs. 2, 3 and 4. This
62 AUGUST 2018 / WorldOil.com
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ability to deliver the right product, to the right
place, at the right time is unmatched. Just as
strong is our commitment to building partnerships
that help our customers succeed.
Learn more about our commitment to
partnership at CoviaCorp.com/WO
64 AUGUST 2018 / WorldOil.com
SHALETECH REPORT / INNOVATIONS AND TECHNIQUES
summary of field data enables operators to graphically visual-
ize the effects of reducing friction in their wells and the prob-
ability that they will capture the documented benefits of the
new couplings.
Although this study reports on the initial findings of field tri-
als that targeted well optimization by using the new couplings,
statistical analysis based on a normal distribution model sug-
gests that 93% of wells will experience improved system effi-
ciencies. The probabilities of increasing revenue, while simul-
taneously reducing cash OPEX and CAPEX, eclipse the minor
marginal cost of adopting this technology.
CONCLUSION
To date, 28 operators have installed ToughMet couplings in
more than 900 wells in multiple shale fields, including the Bak-
ken and Permian basin. The case studies demonstrate that, in
addition to reducing failure rates and avoiding costly workovers,
the couplings have a measurable effect on a well’s performance.
Each well is operating more efficiently with improved sucker
rod string movement, greater downhole stroke, increased pump
fillage and accelerated fluid production. In addition, simply
switching coupling materials has resulted in decreased loads
on the gearbox and polished rod, which suggests that surface
equipment life can also be extended.
Performance step-change. Switching sucker rod couplings
from standard T or spray metal to the copper alloy couplings
achieved the following (on average):
• Oil production increased 21%.
• Downhole stroke increased 23%.
• Pump fillage increased 9%.
• Peak polished rod load decreased 16%.
• Decreased alternating stress on the polished rod by 16%.
• Gearbox loading decreased 16%.
• Fluid level above the pump reduced 28%.
• System efficiency increased 37%.
ACKNOWLEDGEMENT
The authors want to thank the operators who are participating in this project. From a
business perspective, having operator derived field data from which to draw risk-adjust-
ed financial expectations is essential.
CAROLYN CURRAN is a sales engineer for Materion Performance
Alloys, responsible for North Dakota and Montana territories. Ms. Curran
joined the company in 2016 as a customer technical service engineer.
She holds a BS degree in materials engineering from Brown University,
Rhode Island.
DIANE NIELSEN is the global oil and gas market manager for Materion
Performance Alloys. Mrs. Nielsen joined the company in 1990 as a field
sales engineer responsible for Texas, Oklahoma, Louisiana and Kansas.
Mrs. Nielsen holds a BS degree in metallurgy and materials engineering
from Lehigh University, Pennsylvania.
WILLIAM NIELSEN is vice president/general manager for Materion
Performance Alloys. Mr. Nielsen’s career in the materials industry spans
more than 45 years, during which time he has invented, developed and
commercialized new materials for use on aircraft, oilfield and mining
equipment. Mr. Nielsen holds a BS degree in metallurgical engineering
from Case Western Reserve University, Cleveland, Ohio. He also attended
the Weatherhead School of Management at the same university.
RICHARD CASH is a field sales engineer for Materion Performance
Alloys. He joined the company in 2015 and is responsible for oil and
gas application development in Texas, Okla., La. and Kansas. Mr. Cash’s
experience in the materials industry began in 2005. He holds a BA
degree in marketing from Sam Houston State University, Texas.
 DRILL PIPE
Fourth-generation drill pipe connection enhances
land drilling, reduces pipe maintenance
A two-year R&D drilling program addresses
a new onshore paradigm, enhances
performance and improves economics.
ŝŝGUILLAUME PLESSIS, ANDREI MURADOV, DAN MORGAN, and
STEPHEN FORRESTER, NOV; JEREMY DUGAS and BRENNAN WHITE,
Quail Tools
Double-shouldered drill pipe connections developed over
the past several decades have seen performance primarily as the
driver of growth and change. Each generation saw successive
improvements in torque capacity, and streamlining the con-
nections’ profiles addressed the challenges of hole cleaning and
hydraulics. More recently, additional development yielded en-
hancements to fatigue resistance and running speed. These im-
provements were intended to enable connection use in deviated
and extended-reach offshore wells, which had previously been
difficult—or impossible—to drill with earlier generations of
API rotary-shouldered connections. Since these were enabling
technologies, cost was of little concern during this timeframe;
the advances in design so dramatically increased performance
that their higher cost of maintenance could be justified.
As these premium connections began to be deployed onshore,
however, maintenance costs became an issue. Factory drilling ap-
plications—where drilling and completing wells in extremely
short timeframes is critical—demanded a drill pipe connection
that was both high-performing and cost-effective, particularly
with regard to total cost of ownership over the life of the connec-
tion. Intensive use of the existing connection technologies proved
that there was room for improvement, especially if the intent was
to transition the new connection to land drilling.
In response to this issue, National Oilwell Varco (NOV)
engaged in a two-year R&D program to develop a high-perfor-
mance, lower-cost product. The resultant fourth-generation drill
pipe connection, Delta, is now in use by various companies across
North America, including Quail Tools, which was first to bring
Delta to the market.
CONNECTION DESIGN AND TESTING
The Delta connection (Fig. 1) had several major design con-
siderations, which took into account the strengths and draw-
backs of past generations of connections. User feedback re-
vealed that the torque of second-generation connections (XT)
was sufficient for the new connection and that, in some cases, it
even exceeded the capacity of existing iron roughnecks and top
drives. Tool joint dimensions remained largely the same, as they
were acceptable from a fishability and hydraulics standpoint.
Fig. 1. The new Delta connection, with more threads engaged at
stab, and less rotation to engage shoulders, results in reduced
thread damage through the service life of the connection.
Two versions of the new connection—standard and stream-
lined—were developed to address the varying needs of land
drilling. The major focus was on making the new connection
more rugged, easier to use and less expensive to maintain. The
following were critical components for this goal:
• Deeper stabbing and faster make-up for ease of use on the
rig floor
• The use of relaxed inspection criteria from a dimensional
standpoint and a new tolerance for pitting in the less-load-
ed thread roots sections
• More available room for refacing, as this repair is the least
invasive and can be performed with portable refacers
• Increased bearing surface during spinning, to reduce in-
use connection damage and rate of recut.
Finite element analysis (FEA) was performed to optimize
design parameters and verify stress distribution in the Delta
connection. Modeling of extreme manufacturing tolerance
conditions determined the connection’s stress distribution, and
axial interferences at the shoulders were imposed to simulate
torsional make-up. Minimum and maximum make-up torque,
as well as external tensile loads, were also simulated. The FEA
simulations revealed that the dimensions and tolerance selected
for the new connection could adequately handle stress states
without exceeding material capabilities. In addition, the FEA
results indicated that wider field inspection tolerances could be
adopted to reduce repair frequency without compromising the
connection’s performance.
Two-dimensional axisymmetric models of corresponding
connections approximated the number of threads in contact
World Oil® / AUGUST 2018 65
DRILL PIPE
between the pin and box at stab. Having more threads engaged
than previous connections meant that Delta provided a more
even stress distribution, a reduction in stab damage, and elimi-
nation of the stabbing guide as a rig floor necessity. The connec-
tion’s newly optimized geometry increased total available reface
material 50%, permitting additional refaces to take place before
a recut was needed, and reduced material loss by up to 30% for
face-and-chase repair operations, allowing for more recuts.
Laboratory testing validated the design and performance of
the Delta connection after the computer simulations were com-
plete. Make and break testing, performed 100 times, allowed
NOV to determine the connection’s galling resistance, while
torque-to-yield testing validated the connection’s calculated
torsional strength. Over the course of testing, the connection
was examined every 10 make-and-break cycles to observe the
location and severity of damage, and to determine if dimensions
remained within field inspection tolerances. No damage was en-
countered on the shoulders or threads and the dimensions were
well within tolerances after the testing.
In addition, the number of turns from stab to make-up was
reduced to only 6.7 turns on average—far ahead of the 13 turns
required by second-generation, double-shouldered connec-
tions—and torque-to-yield results correlated closely with the
connection’s calculated torsional strength. Fatigue testing was
performed in a harmonic resonant test machine to compare the
Delta connection’s performance versus the second-generation
connection under the same bending moment. The new con-
Fig. 2. Torque analysis of the string revealed that a premium
connection was needed to deliver proper torque to the drill bit in
more challenging wells.
Fig. 3. The result of backreaming in 9⅝-in., 47-ppf casing.
The available torque is increased significantly beyond the limits
of the NC50 connection when using the Delta connection.
0 components were re-inspected. After cleaning the connections
2,000 Backreaming (Delta 544)
4,000
Torque limit (Delta 544)
Backreaming (NC-50)
6,000 Torque limit (NC-50)
Measured depth, ft
8,000
10,000
12,000
14,000
16,000
18,000
15,000 20,000 25,000 30,000 35,000
Torque, ft-lb
66 AUGUST 2018 / WorldOil.com
nection design still outperformed the baseline connection by
243%, under the same bending moment. This enhanced fatigue
resistance meant that the threader could forego the process of
cold rolling the thread roots with no loss of performance.
CONNECTION FIELD TRIALS
Before deploying the new connection in a commercial ap-
plication, field testing was undertaken to validate that the con-
nection performed as intended. A prototype string of 5-in. drill
pipe with streamlined tool joints was produced, and 60 joints of
pipe with the new Delta connection (6⅝-in. OD × 3½-in. ID)
were sent to be run at NOV’s test rig in Navasota, Texas. The
375-ton, 1,500-hp rig was equipped with NOVOS—a drilling
process automation platform—as well as an ST-100 iron rough-
neck and TDS-11SH top drive. In addition, the stand transfer
vehicle arm-racking system was used to handle stands of pipe. A
section of drill pipe measuring 1,900 ft was inserted at the bot-
tom of the string that was run on the test rig in this application.
A two-phase test program was implemented over the fol-
lowing three months. The first phase was used to qualify other
tools, as the pipe was run in the bottom of the string while the
rig drilled test wells; the second phase focused on make-and-
break cycles. At the end of testing, the connections were to be
inspected to determine how well they withstood field service.
Three directional test wells, each with a dogleg severity high
enough to expose the prototype drill pipe, were drilled for the
program. The drill pipe was subjected to strenuous use during
the testing period, with continual making and breaking of con-
nections and manipulation in and out of the well.
The Delta connection was tested, using the highest strength
tool joints commercially available, and the connection was ex-
posed to the highest make-up pre-load, applying the extended
maximum make-up torque (corrected by a friction factor of
1.15) of 79,000 ft/lb. For comparison, an API NC50 connec-
tion for the size and grade of pipe used has a maximum make-
up torque of 38,000 ft/lb. Rig personnel were instructed not to
take extra care when running the connection, and to avoid us-
ing a stabbing guide. The desire was not to expressly mimic real
drilling conditions, but rather to put the connection through
the most adverse conditions possible. A comparative spinning
test also was run, using the same iron roughneck, to evaluate
make-up speed of the new connection versus the second-gener-
ation connection. The second-generation connection required
more rotations to shoulder and took 8 sec to make up; the Delta
connection made up in 4 sec.
When the field trials were completed, the used drillstring
to ensure proper visibility of the threads, make-up shoulders, and
seal surfaces, a visual inspection was carried out. The field proce-
dure called for extremely stringent inspection of the primary and
secondary make-up shoulders (seal faces and internal torque stop,
respectively), as well as thread surfaces (flanks, crests and roots)
and thread profile. Though there was some handling-related im-
pact damage and minor scoring/galling, these issues were typi-
cal of rotary-shouldered connections and not of concern. A di-
mensional inspection followed the visual inspection. Ultimately,
TD-18,394 ft both visual and dimensional integrity were maintained. Despite
running the connections under intentionally harsh operating
40,000 45,000 50,000
conditions and exposing the pipe to an unprecedented amount
of make-up torque, there was virtually no damage to the connec-
 DRILL PIPE

tion. Results indicated such high durability, that new, broader ac-
ceptance criteria for the Delta connection were developed.
POST-TRIAL DEPLOYMENTS
The new connection has been used already in several fields
across the U.S. for varying operator-defined reasons, with each
connection size offering its own particular utility. Torque analysis
(Fig. 2) revealed that a premium connection was necessary on
longer laterals to deliver more torque to the drill bit. The general
benefit of having a higher make-up torque with a slimmer profile
has been to allow operators to exceed their prior limitations. A
prime example is the use of 5½-in., 21.90-pounds per foot (ppf)
Delta 544 where 5-in., 19.50-ppf NC50 was used previously.
While the connections have the same tool joint OD—and there-
fore the same fishability—the Delta 544 connection, streamlined
for a 5½-in. tube, provides a 64% increase in available torque.
Figure 3 shows the result of backreaming in 9⅝-in., 47-ppf
casing. Pipe with the Delta connection can be used in the same
wellbore, while providing a drastic increase in available torque—
the available torque-at-bit for the Delta 544 case is 20,000 ft/lbf,
wells, require high torque to rotate the string. Rotating often
can be required to reduce the severity of buckling, even if the
hole is not being drilled directly by the rotation of the string;
that is, there is always a benefit of having higher torque and
therefore the option to rotate the string, even if that was not the
original plan. The same can be said for the use of 4½-in., 16.60-
ppf Delta 425 over 4-in., 14-ppf NC40. The standard tool joint
OD is the same, but the Delta connection offers a much higher
make-up torque. Additional benefits of increasing the tube size
include an improvement in string pressure loss and buckling
resistance, Fig. 4. The lower pressure loss in the string means
more pressure reaches the formation during a fracture, while
Fig. 4. String pressure loss, using the Delta connection vs. the
NC50 connection. The dramatic reduction in pressure loss means
that more pressure reaches the formation during a fracture.
1,400
1,200
String pressure loss (NC-50)
String pressure loss (Delta 544)
1,000

Pressure loss, psi

while it is only 5,000 ft/lbf for the NC50 case. This type of analy- 800
sis has been done routinely in WellPlan by Quail Tool’s technical 600
services division, since the release of the Delta connection.
Operators are realizing that they can achieve more available 400
drilling torque without compromising fishability. This is partic- 200
ularly useful for companies that are using rotary steerable sys- 0
tems, or even those rotating while drilling with a motor. Long 100 120 140 160 180 200 220 240 260 280 300
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DRILL PIPE

increased buckling resistance translates to more weight-on-bit
while sliding before causing helical buckling.
CONCLUSION
With laterals continuing to increase in length, and challenging
wells demanding more robust equipment, a step change in con-
nection technology was necessary. The Delta connection was de-
veloped to meet or exceed the performance of earlier connections,
while still reducing total cost of ownership. Extensive connection
design validation and testing provided valuable insight into per-
formance differentiators, while connection field trials proved the
viability of Delta for broader commercial implementation.
The Delta connection is performing in fields across the U.S.
with an overall recut rate of 3.6% over a sampling base of over
40,000 connection inspections. Field use repeatedly confirms the
benefits of using the new connection, as shown in the modeling
performed by Quail Tools. In addition to the performance ben-
efits of using the higher strength connection and tube in the same
wellbore, Delta helps operators to realize significant reductions in
the cost of pipe maintenance, due to fewer connections needing
recuts—and a lower price for recuts when required.
GUILLAUME PLESSIS joined NOV with the legacy Grant
Prideco team in 2008. A graduate of Arts et Métiers
Paris-Tech, he has dedicated almost 20 years to drilling
tubulars, first as a product engineer and later in various
marketing and product management roles. Mr. Plessis
has published numerous papers and is active in the
industry’s technical committees.
ANDREI MURADOV has worked at NOV for 24 years,
most recently as V.P. of engineering for Grant Prideco.
He holds a BS degree with honors in petroleum
engineering from Gubkin University of Oil and Gas, and
he completed the NOV Ventures program at McCombs
School of Business.
DAN MORGAN uses his more than 36 years of increasing
responsibility at NOV—through quality, metrology,
engineering—in his current role as director, field service /
claims, to serve the company’s global customers at
every level. With training in metallurgy, quality,
management, leadership, steel processing, and well
drilling, Dan is passionate about safely providing quality
products and ensuring customer satisfaction.
STEPHEN FORRESTER has worked at NOV as a
marketing/technical communications writer since 2014.
He researches and executes strategic marketing
communication and technical writing opportunities to
support the company’s businesses. He holds BA and MA
degrees in English from the University of Houston.
JEREMY DUGAS serves as the technical services
manager for Quail Tools. He joined the team in 1996 as a
drill pipe inspector and has since held a variety of key
positions. In 2009, he managed and led the newly
formed Quail Tools deepwater division, where he
worked extensively with heavy-duty landing strings and
handling equipment.
BRENNAN WHITE has worked at Quail Tools as the
engineering manager, since 2016, and was a mechanical
engineer for the company prior. Mr. White holds a BS
degree in mechanical engineering and an MS degree in
engineering and technology management. In addition,
he is a PhD student at the University of Alabama,
studying aerospace engineering and mechanics.

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Precise prediction of hydrocarbon
burn efficiency is now possible
From the early days of
dynamite to advanced well
control systems, significant
advances have been made
in fire suppression and blow
out prevention in the oil and
gas industry.
ŝŝANDY CUTHBERT, Boots and Coots
In the early 1900s, gushers were ro-
manticized as symbols of prosperity. In
retrospect, blowouts were recognized for
their detrimental impact on personnel,
assets and the environment, not to men-
tion the loss of marketable resources. In
response, well control technologies have
evolved significantly over the last few de-
cades, and Boots & Coots has been on
the leading edge of those advancements.
EARLY TECHNIQUES
Early in the industry, well fires could
be extinguished using TNT, which de-
pleted the available oxygen and effective-
ly extinguished the conflagration, Fig. 1.
Nowadays, the well is left to burn-off toxic
elements, or voluntary ignition is used if
the well has not caught fire spontaneously
—the use of explosives is now confined
to the annals of history. Burn efficiency
modeling has matured significantly to
determine just how critical it is to burn
uncontrolled hydrocarbon emissions.
Extensive industry leading research, in-
volving Boots & Coots (Methodology to
Predict Hydrocarbon Burn Efficiency of
Blowout Flow in a Hostile Environment,
SPE paper 062517), now enables precise
quantitative prediction of how much is
burned, and the quantity of asphaltenes
that remain, assisting in determining suit-
able spill mitigation response.
With safety uppermost in the projects
undertaken by the company, the work in
Iraq after operation Desert Storm saw the
introduction of the Athey Wagon as a less
HSE – WELL CAPPING
Fig. 1. Myron Kinley is known as a trailblazer in the fire suppression industry. He developed
many patents and designs for the tools and techniques of oil firefighting.
risky means of addressing the wellhead, Fig. 2. The sand-line cutter uses a sand and
water mixture to suppress platform fires,
either by cradling a venturi tube (Instru- where limited space precludes the use of
mented Venturi Tube, Boots & Coots, Pat- larger tools.
ent application #2016-IPM-100655 U1
PCT) to vent the fire away from the im-
mediate vicinity of the wellhead, or by
supporting a new wellhead installation.
With advances in wellhead operations
came the addition of the jet cutter, that
could cut through an existing wellhead
more safely to prepare it remotely, rather
than risk personnel near the blowing well.
The cutter (Fig. 2), using a sand and wa-
ter mixture, has been used by the compa-
ny in the closer confines of platform fires,
where limited space precludes the use of cially in cases where a well on produc-
larger tools. The “Oxylance” has also be- tion encounters problems. Gate valve
come standard issue in recent years, to drilling has progressed to the subsea en-
make more accurate cuts of the wellhead vironment, where we have IP to provide
to prepare for re-heading. an ROV-driven system for deeper waters,
where the environment precludes the use
RECENT ADVANCES of divers (Deepwater Diverless Hot Tap
Focusing on prevention rather than Unit, Boots & Coots published invention
cure, we supply the special services of disclosure #2017-IPM paper-101102).
gate valve drilling technology, hot tap- Development of software algorithms
ping or a cryogenic freeze service, espe- has led to improvements in well-kill dy-
World Oil® / AUGUST 2018 69
HSE – WELL CAPPING
namics design, such as OLGA ABC and
greater accuracy in kick tolerance us-
ing DrillBench. Likewise, updates in
COMPASS software have allowed the
Fig. 3. The RapidCap AFCS 02 subsea
capping system uses advanced
computation, fluid-dynamic software to
accurately model plume force velocities.
Fig. 4. The RapidCap AFCS 47 demonstrates landing capabilities in underwater scenarios
and is currently undergoing research.
70 AUGUST 2018 / WorldOil.com
firm to stay current with well planning
techniques, and personnel have become
power users of this industry-standard
software, but that hasn’t stopped us from
investigating more functional proprietary
software designs of our own. Hand-in-
hand with well kill, is well integrity, which
is a preventative approach to well control,
and has benefitted from using landmark
software, such as StressCheck and Well-
CAT for casing design. Multiple well con-
trol scenarios can now be run in a relative-
ly short timeframe, to determine the best
ways to prevent well control incidents,
especially in deepwater environments.
The difficulty facing more mature wells is
determining integrity. Older tubulars in a
well must be de-rated, based on longevity
and environment.
Gas dispersion and radiant heat mod-
eling have become an aspect in the field
of incident command and control –
knowing how to set-up an incident site
and work with local emergency response
organizations to potentially move fami-
lies that might otherwise be downwind
of a burning rig, for example. Multi-well
pad drilling with 20-ft to 40-ft, center-to-
center well spacing, makes collaborative
pre-planning well control essential. Risk
mitigation is necessary as a pre-emptive
tool, and we have been a proponent of
risk evaluation as a progressive evolu-
tion in applying in-house expertise. The
industry has emerged more proactively
than it has been in years. The use of care-
fully constructed well control contingen-
cy plans is now regarded as an industry
staple in the creation of the overall emer-
gency response plan.
The magnetic guidance system
(MGT), a tool for magnetic ranging ap-
plications, measures vertical and hori-
zontal well separation between a relief
well and a target well, within a precision
of a few centimeters, for hydraulic inter-
ception during the well kill process. The
MGT was developed in 1993 as a joint
effort between Sperry Drilling and Vec-
tor Magnetics of Ithaca, N.Y. In 1999,
further development work with rotat-
ing magnets was undertaken as another
method of determining the proxim-
ity between a current well and a target
well. Thus, the rotating magnet ranging
service (RMRS) was born. The RMRS
proximity surveys range from 5m to 15m
behind the bit, combined with upgrades
for shallow intersection and faster pro-
cessing (2017). The addition of gyro
measurements (2017) represent addi-
tional technological developments in
relief-well drilling.
ELECTROMAGNETIC TELEMETRY
Since 2002, electromagnetic telem-
etry has seen the largest overall improve-
ment in relief well ranging efficiency,
minimizing the time impact and improv-
ing overall drilling efficiency (Electro-
magnetic Ranging Source Suitable for Use
in a Drill String, Boots & Coots, U.S.
Patent No. 9,534,488 B2). The need for
a passive ranging tool that uses acoustic
energy has been identified, particularly
for real-time surveying. With a range
to open hole, there is no ferromagnetic
signal, or through salt domes, which oth-
erwise absorb and scatter conventional
magnetic ranging signals (Passive Rang-
ing Using LWD Acoustic Velocity Measure-
ments, Boots & Coots, Patent application
#PCT/US2015/04940). Similarly, a
means to range to a thermal signal, gen-
erated by the influx through the forma-
tion, is another area of investigation,
when there is no steel present to pro-
vide a signal (Passive Ranging to a Target
Well Using a Fiber Optic Ranging Assem-
bly, Boots & Coots, Patent application
#PCT/US2015/56484).
We embarked on a subsea source con-
trol solution in 2016, and operate an in-

novative capping stack, employing gate
valve technology, a departure from more
traditional, unwieldy ram-based systems
(Method and System for Rapid Deploy-
ment of a Capping Stack, Boots & Coots,
U.S. Patent No. 9,222,494 B2). The
lighter design of the modular system can
be deployed more rapidly to any global
incident (Rapid Response Well Control
Assembly, Boots & Coots, Patent filing
2016-IPM-100655 U1 PCT), compared
to the logistically complex requirements
that cumbersome, conventional capping
stacks demand. The company is pushing
further technological design change im-
provements (Ball Valve Design Capping
Stack, Boots & Coots, Patent application
#2017-IPM-101101 U1 PCT).
ENTER THE RAPIDCAP
Simulation software is taking the
steadfast methods of subsea source con-
trol future-forward. Having branched-
out into the subsea arena with the intro-
duction of the RapidCap subsea capping
system (Fig. 3), Boots & Coots is fast
becoming industry leaders in capping
stack deployment. Further technological
features using ball-valve apparatus have
already been submitted as a patent ap-
plication. Sophisticated computational,
fluid-dynamic software can accurately
model plume force velocities and deter-
mine the veracity of landing a capping
stack under any given condition.
Multibody interactions between the
dynamic positioning deployment vessel,
the heave compensated crane deploying
the capping stack, the spring force pro-
duced by the deployment cable and the 6°
of freedom of the capping stack, require
massive computing power to produce a
suitably high-resolution model accurately,
and coupled with dynamic plume force
analysis is adaptive rocket science. Addi-
tional groundbreaking research into the
landing capabilities in both deepwater
and shallow-water scenarios, a first in the
industry, is being conducted solely at our
discretion, Fig. 4.
Further investigation into slick propa-
gation and migration from an oil spill,
using smoothed particle hydrodynam-
ics, is also being investigated. Predictive
programs have existed for some time, but
none have the accuracy or fidelity that is
now being produced by a partner firm
for slick dispersion analysis.
Alongside traditional well control
methodology, our proficiency uses man-
aged pressure drilling to precisely man-
age wellbore annular hydraulic pressure.
Looking ahead, several field-proven,
downhole data measurement technolo-
gies are being adapted to improve bar-
rier integrity verification in subsea wells.
Also included are wired casing for real-
time monitoring of annular pressure/
temperature during casing, cementing
and production operations, wireless
real-time annular pressure/temperature
monitoring and fiber optic sensor mea-
surement across producing formations
(Casing/Tubing Annular Pressure/Fluid
Expansion Control, Boots & Coots, U.S.
Patent No. 9,835,009 B2).
IN SUMMARY
Well control has come a long way in
the past 40 years. Our firm has grown
into a technologically shrewd company
that envisions improvements in data te-
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 DIGITAL TRANSFORMATION/OFFSHORE PRACTICES

Maintaining asset integrity

during hurricane season
Use of simulation twins can protect floating
Fig. 1. Digital twin models can be a handy tool for urgent
assets during hurricane season. operational situations, like hurricanes. Photo: Stress Engineering.

ŝŝDAVID F. RENZI, PE, Stress Engineering Services

(Editor’s note: We can think of no better time to feature this
article than in the August issue, as the North American hurricane
season builds to its peak in first-half September. This month also
marks the one-year anniversary of vicious Hurricane Harvey, which
plowed its way through the Gulf of Mexico and set all-time rainfall
records in Houston and Southeast Texas.)
Over the past few years, the oil and gas industry has been
rapidly embracing the benefits of a digital transformation. One
aspect of the transformation is the emergence of digital twin
models, which provide a virtual representation of physical sys-
tems that mirror the information embedded therein. Fig. 2. Simulation twin cycle.
Most digital twin models for offshore floating facilities are
focused on maintaining operational and inspection data. These
digital twins can be linked through the life cycle of the system
and allow for an unprecedented collection of asset information
that reflects real-time conditions. As a subset of assorted digital
twins, “simulation twins” add an additional layer of capability,
by providing integrated physics-based analytical models and
predicted responses, Fig. 1.

BENEFITS OF SIMULATION TWIN MODELS

Simulation twins are built on a foundation of physics-based
analytical models, capable of accurately evaluating the response
of a system. These physics-based models are ideal for situations
where system response data are limited in terms of availabil-
ity or accuracy. This scenario literally describes the reality of
most floating systems. Data analytics solutions incorporating
techniques, such as machine learning and artificial intelligence,
can be extremely powerful, but are also inherently limited by
the availability and quality of data. A highly capable simulation
twin can be developed by using the foundation of physics-based
models with an additional layer of data analytics to recognize
the full potential of both techniques.
A perfect example of this challenge for a floating system is data analytic solutions applied to only these available, measured
the difficulty in determining measured riser response. A typical data will inherently be limited.
riser has little-to-no instrumentation unless a particular area of A powerful solution is to use a physics-based model to gener-
concern is identified that warrants an expensive instrumenta- ate the responses of the entire system, based on the most reliable
tion campaign. This instrumentation, when installed, still pro- and accurate available data. Data analytic algorithms can then be
vides coverage for only a relatively small region over the entire applied to not only measured data, but also the augmented data
length of the riser. Although the measured response of the riser, provided by the physics-based model. In essence, a continuous
itself, is typically correlated to the measured motion of the float- cycle is developed, where the physics-based model and data ana-
ing host facility, the correlation is only partial, and the quality lytics solutions are tied together, to provide an extremely accurate
of the measured motion data is often lacking. It is obvious that assessment of the system, as demonstrated in Fig. 2.
World Oil® / AUGUST 2018 73
DIGITAL TRANSFORMATION/OFFSHORE PRACTICES
Obviously, a properly developed simulation twin model
must accurately predict the system responses and must properly
clean the measured data utilized by the model. A comparison of
tendon tensions, predicted by a properly developed simulation
twin and measured by a tendon monitoring system for a TLP
during two hurricane events, is provided in Fig. 3. Without a
proven ability to adequately clean the measured data and pre-
dict a system’s response, the benefits of a simulation twin are
greatly reduced, if not eliminated completely, Fig. 4.
The accuracy and breadth of the simulation twin can be im-
proved and optimized continually after the initial implementa-
tion. This improvement and optimization process can take the
form of data analytics solutions, such as machine learning, a
better understanding of the physics and assumptions utilized
by the analytical engine, or expanding the simulation twin to
evaluate other system components or phenomena.
For a floating system simulation twin model, the areas of
concern are the floating host motions, mooring/tendon sys-
tems, riser systems, umbilicals and hull/topsides structure with
appurtenances. An initial implementation may focus on a par-
ticular area of concern and may not cover the entirety of these
components or systems; however, the additional items can be
incorporated as the system is expanded over time.
Another aspect of the system that can be improved and op-
timized continually is the analytical engines and assumptions
used in these engines. Every analytical model uses some level of
assumptions for the practical purposes of efficiency or lack of
known information. As information becomes available through
the implementation of the simulation twin, these models and
assumptions can be evaluated. The knowledge gained from this
Fig. 3. Comparison of measured and predicted tendon response
during hurricane events.
Fig. 4. Example of raw data (left) vs cleaned data (right).
74 AUGUST 2018 / WorldOil.com
process can be captured and applied to the design and evalua-
tion of other floating systems and components.
Finally, the enabling technology of a simulation twin is full
automation of both the system assessment and the identifica-
tion of useful insight. If labor effort is required to perform these
activities, the cost-benefit of implementing the simulation twin
model may be unrealized. This automation applies to all aspects
of implementation: data cleaning, physics-based model assess-
ments, data analytics, and the final presentation to the end-user
of the insight generated.
The useful presentation of insight is especially important.
There has been a vast amount of data collected throughout the
industry over the past decades. Almost all of these data have re-
mained unused, due primarily to a lack of the necessary technol-
ogy to efficiently gather insight from the disparate data located
in a myriad of different storage systems. Accessing this insight
requires technology developed by a combination of subject mat-
ter experts, data analytics experts and information technology
experts. This combination is needed to identify which informa-
tion is truly valuable as actionable insight, and present this infor-
mation to the end-users in a format that allows ease-of-use and
provides sufficient information to determine the actions needed.
HURRICANE SEASON
ASSET INTEGRITY MANAGEMENT
Simulation twins can provide system information, not only
for real-time conditions, but also past and future conditions.
These capabilities can be leveraged for many benefits, one of
which is protecting the asset integrity of floating systems dur-
ing hurricane events. The three primary facets that a simulation
twin utilizes for hurricane event integrity management are:
• Hurricane season planning activities
• Real-time response during hurricane events
• Post event inspections and activities.
These facets all take advantage of the ability of a simulation
twin to provide complete system responses, using relatively
little available measured data. Even if measured data from the
floating system are unavailable for a hurricane event—whether
due to lack of instrumentation or lack of power to the instru-
mentation system during hurricane evacuation—the simula-
tion twin can rely on other sources of data. Forecast and hind-
cast data available from publicly available sources and private
meteorological services can provide site-specific environmental
data that can be utilized by the physics-based models. This ad-
 DIGITAL TRANSFORMATION/OFFSHORE PRACTICES

ditional layer of robustness ensures that the operator can rely on
the actionable insight being generated, regardless of the level of
instrumentation or data availability.
Hurricane season planning activities. Most operators rely
on information generated during the design phase of a floating
facility, to determine operational guidelines documented in the
marine operations manual. The design phase typically consid-
ers a range of conditions meant to represent the lower and up-
per bounds of the facility configuration. For example, a mini-
mum riser and maximum riser condition may be evaluated. Or
a minimum topsides vertical center of gravity (VCG) and maxi-
mum topsides VCG may be evaluated. The operational guidance
is then developed, based on the worst-case response of all these
various conditions.
However, the as-is condition of a facility is almost never well-
represented by the extreme bounding conditions. A simulation
twin represents the best-known condition of the facility and can
be used to determine the system response to expected environ-
mental and operational loads. This capability can be leveraged
in two manners to provide operational guidance during hurri-
cane season:
• Evaluation of response, due to extreme event conditions,
based on pre-determined metocean criteria (e.g., a 100-yr
hurricane, as defined in API RP 2MET)
• Predicted response, due to named storms (e.g., using
forecasted conditions of a hurricane moving into and
through the Gulf of Mexico).
The operator can use the response of the as-is system to hur-
ricane events, to optimize asset integrity management and op-
erational plans. The response, due to pre-determined metocean
criteria, can guide long-term plans, while the response for par-
ticular events will guide short-term plans. The primary benefits
are derived from:
• Determining the ideal evacuation condition
of the facility, to minimize strength and fatigue
loading of components
• Understanding the strength and fatigue utilization
of the floating system and components during
hurricane events.
Evacuation procedures typically consist of activities, such as
adjusting mooring line or tendon tensions; re-positioning the
floating system; adjusting top-tensioned riser tensions; secur-
ing a drilling rig (mechanical lockdown); and re-ballasting or
offloading equipment to maintain desired weight and VCG con-
ditions. These procedures can be optimized, based on expected
environmental conditions and as-is facility conditions, allowing
only those activities that are necessary to maintain asset integ-
rity to be performed.
Determining which components and locations are critical,
in terms of strength and fatigue utilization, is a long-term as-
set integrity management activity. The system response during
hurricane events forms a portion of this activity. Understanding
the actual utilization of components, during hurricane events
experienced by the system, allows for more accurate estima-
tions of long-term behavior. This understanding then informs

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DIGITAL TRANSFORMATION/OFFSHORE PRACTICES
the development of risk-based inspection plans and condition-
based maintenance programs.
Fig. 5. A simulation twin can be of real help when floating
systems in the Gulf of Mexico have to be evacuated in advance
of named storms, as was the case with Hurricane Harvey during
August 2017. Image: NeoSight/OceansMap.
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Real-time response during hurricane events. Floating
systems in the Gulf of Mexico are evacuated in anticipation of
named storm events, Fig. 5. Many floating systems can provide
at least limited real-time instrumentation data to onshore facili-
ties during these evacuation situations. These limited data often
provide information for vessel motions, mooring line tensions
and environmental data.
The simulation twin can utilize the measured data to deter-
mine the response of the floating system and all of its compo-
nents (not only where instrumentation is installed). The sim-
ulation twin also can act as a “virtual sensor” to provide data
where physical sensors either provide unreliable data or are
completely unavailable.
For example, mooring line load cell tension data often have
issues regarding quality and continuity. The “virtual sensors”
provided by the simulation twin provide consistent, high-qual-
ity data along the entirety of the mooring line, and not just at
the location of the physical sensor. The simulation twin can in-
corporate data available outside of the instrumentation system.
For example, environmental data from meteorological forecasts
or other weather models can supplement the measured instru-
mentation data.
The integrity of the floating system and its component can
be inferred by comparing predicted and measured responses.
Automated alarms can be established for discrepancies between
predicted and measured responses, alerting personnel to issues
that need to be examined with additional scrutiny. For example,
if the measured pitch and roll response of a semisubmersible
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is significantly different than the predicted response for the
measured environmental loading, this is an indication that the
as-is condition does not match the condition prescribed in the
evacuation procedures. Personnel can be alerted to examine the
issue further and take appropriate action.
These pre-emptive alerts are in contrast to the typical meth-
ods that are based on key performance indicators (KPIs), which
examine each data channel individually, in relation to a pre-set
threshold rather than in a holistic view of the entire system re-
sponse. This methodology cannot capture the anomalous re-
sponse until after these limits have been reached, and the pos-
sibility of taking corrective actions is improbable.
Post-event inspections and activities. The third benefit of
simulation twins for hurricane events is to expedite post-event in-
spections and activities. The simulation twin provides a real-time
assessment of the response experienced by the floating system
during the passage of the hurricane. This response encompasses
the entirety of the floating system, including the mooring/tendon
systems, riser systems, umbilicals, and hull/topsides structure.
Response of critical structural locations, such as deck-to-
column connections, or events such as a mooring line breakage,
can be identified. This provides the operator with a “punch list”
of anomalies detected during the event, and identifies the com-
ponents with the highest strength and/or fatigue utilization.
This allows the operator to prioritize inspection and post-event
activities. This information will be available, even before the fa-
cility is re-manned.
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DIGITAL TRANSFORMATION/OFFSHORE PRACTICES
CONCLUSION
The digital transformation occurring in the oil and gas in-
dustry provides exciting new capabilities to improve safety and
efficiency. An important piece of the transformation is simula-
tion twins utilizing physics-based models. One specific benefit
of these simulation twins is to provide a significant enhance-
ment of floating systems asset integrity management during
hurricane season.
This benefit is realized through the ability of the simulation
twin to evaluate forecasted, real-time and previously measured
conditions. The operator of a facility can efficiently determine
the ideal evacuation conditions for a floating system, identify
anomalous responses during the event, and provide an immedi-
ate post-event assessment of the floating system.
Previously, these activities were either not performed or pre-
formed on a limited basis, due to the labor effort required. The
automation of these activities greatly reduces, or even elimi-
nates, the labor effort required to provide such extensive infor-
mation. In conjunction with the ability to provide automated
alerts of anomalous behavior, the operator can focus its hurri-
cane season efforts, guided by a clear and complete picture of
its assets’ integrity.
DAVID RENZI is a principal at Stress Engineering
Services, where he specializes in floating systems asset
integrity management, performance analysis of floating
production systems, and analysis and design of marine
riser and mooring systems. He holds a BS degree in
mechanical engineering from Texas A&M University, and
is a professional engineer, licensed in the state of Texas.
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Dallas, Texas, USA
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President, Software President & CEO Vice President,
Integrated Solutions Encana Oil, Gas & Energy
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World Oil® / AUGUST 2018 77
REGIONAL REPORT

WEST AFRICA
Intending to be a global supplier, the region endures output disruptions
ŝŝEMILY QUERUBIN, Associate Editor

Despite ongoing conflict throughout West Africa, the re- The attacks are impeding the country’s efforts to expand ex-
gion’s energy sector continues to make progress toward becom- ploration outside the Niger River Delta, in the hope of finding
ing a leading global oil and gas supplier. According to Global- new crude reserves. The geologists had been working for Nige-
Data, nearly $194 billion will be spent on African oil and gas rian National Petroleum Corp. (NNPC) at the time, surveying
fields between 2018 and 2025. parts of the Lake Chad basin, which is said to be a key area of
operation for Boko Haram. It reportedly was the first attempt to
NIGERIA uncover new reserves since exploration ceased in 2014, due to
Despite its position as the “Giant of Africa,” in terms of pop- the wave of violence.
ulation and economy, Nigeria has struggled for years to resist Since the election of President Muhammadu Buhari in
the threat from militant groups. Because Nigeria is Africa’s top 2015, Nigeria’s economy has been shrinking, due largely to the
oil producer, militants see oilfield installations as a prime target. decline in oil production. In the southern Niger River Delta,
In 2016, continual assaults resulted in the lowest output that the where most of the country’s oil is produced, continued output
country had seen in over three decades. disruptions have deprived the government of more than $7
Last July, suspected Boko Haram militants ambushed a billion in revenue.
group of geological surveyors in Borno state, in northeastern Last December, the federal government agreed to take $1
Nigeria. The attack resulted in the death of numerous Nigerian billion from an account designated for oil revenue savings to
soldiers—who were acting as security escorts for the explora- support the country’s war against Boko Haram’s Islamist insur-
tion team—as well as the kidnapping of several staff members gency. According to the Nigerian government, the expenditure
from the University of Maiduguri’s geology department. Mili- leaves $1.32 billion in the excess crude account, which is where
tants are progressively getting bolder in their attacks, as the July oil income above projected estimates is saved.
2017 strike took place in what was considered a low-risk area. For now, however, there is no end in sight for the Nigerian oil
Left: Among others, Total operates the Moho Nord project, which it says is the largest oil project ever undertaken in the Republic of the Congo. Image: Total. Center: Eni’s Kalimba
discovery well, offshore Angola, was drilled by the West Gemini drillship earlier this year. The discovery is estimated to contain between 230 MMbbl and 300 MMbbl of light oil in
place. Image: Seadrill. Right: In Cameroon, Victoria Oil & Gas is making significant E&P progress, particularly at Logbaba field, in the Douala basin. Image: Victoria Oil & Gas.

78 AUGUST 2018 / WorldOil.com
industry, as the threat of violence from several militant groups
persists. In November, the Niger Delta Avengers issued another
warning to the region: “Our operatives are intact and focused,
ready to implement instructions,” the statement read. “We
can assure you that every oil installation in our region will feel
warmth of the wrath.”
The group also issued reported threats to Total’s Egina oil
field, which was scheduled for start-up this year. “The water depth
poses a challenge for the development of Egina, which is one of
the deepest offshore projects ever operated by Total,” said Jean-
Michel Guy, executive general manager of the project. The ultra-
deepwater field, situated more than 80 mi offshore, has a forecast
production capacity of 200,000 bopd. The project expects to
see 44 subsea wells drilled, in water depths between 4,593 ft and
5,577 ft. The wells will be connected, via umbilicals and risers, to
an FPSO that is designed to hold 2.3 MMbbl of oil, Fig. 1.
A JV, led by Nigeria LNG, made progress on its $12-bil-
lion LNG expansion program this year, which is expected to
increase the country’s LNG capacity as much as 40%. The
company, alongside Saipem, TechnipFMC and Chiyoda Corp.,
is working to take FID on the project by the end of the year.
In early July, engineering and design contracts were signed for
construction of a seventh facility on the nation’s Atlantic coast.
The expansion plan is part of the country’s efforts to maintain
market share and preserve its position as one of the world’s top
LNG exporters, as it competes with increasing output from Qa-
tar, Australia and the U.S.
Nigerian oil producer Shoreline Group also anticipates prog-
ress in the Niger River Delta this year, as it seeks to boost output
significantly. In January, the company announced a $530-mil-
lion financing deal with Vitol Group that will allow a produc-
tion increase of between 80,000 bopd and 100,000 bopd this
year. Shoreline reportedly was one of several Nigerian produc-
ers that bought fields in the Niger River Delta after interna-
tional companies, including Shell, withdrew amid the ongo-
ing violence. The company, which holds an estimated 1 Bbbl
in reserves, had ceased all production for a year, following the
February 2016 closure of the Forcados terminal. According to
CEO Kola Karim, the company now plans to boost its gas out-
put from 100 MMscfd to about 500 MMscfd.
According to Bloomberg, however, the Federal Republic of
Nigeria, overall, was expected to load just 1.8 MMbopd dur-
ing July. While the output level is in line with the cap that was
agreed on by OPEC, the country still faces the possibility of a
production drop, due to the threat of militant attacks. “Security
in the Niger Delta remains a major concern, with persisting
incidents of criminality, kidnapping and vandalism, as well as
onshore and offshore piracy,” said Igo Weli, general manager for
external relations at Shell’s local unit.
GHANA/IVORY COAST
The government of Ghana signed an agreement with
ExxonMobil Corp. in January, granting the company explora-
tion and production rights for the deepwater Cape Three Points
Block. The 366,000-acre block, situated 57 mi off Ghana’s coast,
is believed to have high resource potential. As operator, with
80% interest, ExxonMobil will carry out exploration activities
in the block later this year, including acquisition and analysis of
seismic data.
At present, Ghana reportedly has 21 licensed blocks, 14 of
which are in ultra-deepwater territory. Tullow Oil, Anadarko
Petroleum, Kosmos Energy and CEF (SOC) are among the
top operating companies in the region. Ghana’s E&P sector has
taken off over the past five years, with eight new discoveries.
World Oil® / AUGUST 2018 79
REGIONAL REPORT / WEST AFRICA
Of late, Ghana and Côte d’Ivoire (also known as Ivory
Coast) have dealt with numerous maritime border disputes
related to regional offshore exploration blocks. In September,
Kosmos Energy, which holds a 17% participating interest in
Fig. 1. Despite challenges related to water depth and threats from
Nigerian militants, Total’s Egina field is scheduled for start-up this
year. The Egina FPSO is designed to hold as much as 2.3 MMbbl
of oil. Image: Total.
Fig. 2. State firm Société Nationale des Hydrocarbures has
launched a licensing round in Cameroon this year, opening eight
blocks in the Rio del Rey and Douala/Kribi-Campo basins for
exploration. Source: CGG.
80 AUGUST 2018 / WorldOil.com
the offshore Tano Block, announced that arbitration between
the two countries has not affected production at the offshore
TEN development. In addition, Kosmos operates one of Gha-
na’s latest deepwater projects, Mahogany-Teak-Akasa (MTA).
The project is in the West Cape Three Points Block and is an-
ticipated to come online this year.
CAMEROON/EQUATORIAL GUINEA
In Cameroon, Victoria Oil & Gas has made significant prog-
ress at Logbaba field, in the Douala basin. Last November, the
company reported that its La-108 well had successfully reached
nearly 9,400 ft, MD, encountering 277 ft of net gas sand in the
Upper and Lower Logbaba formations. This was significantly
more than the La-107 net sands, and reportedly exceeded pre-
drill estimates. The LA-108 concluded a two-well drilling cam-
paign that had begun in November 2016.
By the end of December, initial flow testing was complete.
According to the company release, La-108 showed initial gas
flowrates up to 15 MMscfd from the lower Logbaba sands, while
La-107 tested at a rate of approximately 4 MMscfd. Following
evaluation of seismic reprocessing results and completion of the
development drilling campaign, the company revised the field’s
reserve estimates in June. The field’s proved reserves were re-
vised upward by 29 Bcf, to 69 Bcf. Additionally, its remaining
2P reserves were revised upward by 106 Bcf, to 309 Bcf. VOG
Chairman Kevin Foo said, “The results of this reserves update
are a major advance to our business in Cameroon. They provide
a significant value upgrade to the Logbaba project, and confirm
that the field reserves will meet the growing demand in the
Douala market for the foreseeable future.”
One of Cameroon’s biggest developments of late, however,
is its $1.2-billion Hilli Episeyo LNG project, which started full
commercial operation in early June 2018—just three months
after first gas was confirmed. The project’s production vessel
reportedly is only the second FLNG facility to go onstream
worldwide. And, according to Golar LNG, it is the world’s first
FLNG vessel to be developed as a conversion project from an
LNG carrier. While the project is fairly small, with a production
rate of approximately 2.4 million tons per year, it is an important
milestone for Cameroon, making it a net gas exporter and the
sixth African nation to supply LNG.
“It’s good to see a new African exporter coming into the
market,” Trevor Sikorski, head of natural gas and carbon re-
search at Energy Aspects, told Bloomberg. “An obvious market
is Europe, particularly when the markets can be a bit stressed.”
Cameroon is said to be geographically well-positioned as a
supplier to the European market, as cargo can be transported
to Britain in just 11 days.
A directive by state firm Société Nationale des Hydrocar-
bures’ (SNH), to promote Cameroon’s hydrocarbon resources,
instigated the launch of a licensing round this year. The licens-
ing round opened eight blocks—Bakassi, Bomana, Bolongo,
Etinde, Kombe-Nsepe, Tilapia, Ntem and Elombo—in the
resource-rich Rio del Rey basin and the highly prospective
Douala/Kribi-Campo basin, Fig. 2.
Just south of Cameroon, in Equatorial Guinea, Ophir En-
ergy and its partners are still working to secure project financ-
ing for the Fortuna project in Block R, west of Bioko Island.
There have been six commercial discoveries in the block, to
date. According to Ophir, it holds 3.7 Tcf of gas resources,
 WEST AFRICA / REGIONAL REPORT

with an expected plateau production rate of 330 MMscfd for

30 years. The project will utilize an FLNG vessel, because the
gas uncovered in Block R is particularly rich in methane, with
no contaminants or heavy hydrocarbons; therefore, it requires
minimal topside processing.
Fig. 3. Total’s deepwater Kaombo project, which is said to hold
an estimated 660 MMbbl of reserves, will produce to the Kaombo
Norte and Kaombo Sul FPSOs, offshore Angola. Image: Total.

GABON/CONGO
Last year, Shell divested its onshore oil and gas assets in
Gabon, selling all its interests to Assala Energy for $628 million
in November. Assala is now the second-largest oil producer in
the Gabonese Republic, operating Rabi, Toucan/Robin, Kou-
la/Damier, Gamba/Ivinga and Bende/M’Bassou/Totou fields.
Additionally, the company holds interests in four non-operated
fields—Atora, Avocette, Coucal and Tsiengui.
Panoro Energy, another major operator in Gabon, made Fig. 4. In May, Total reported that FID had been taken on the Zinia
progress at Tortue field last April. The company reported suc- 2 project, in Angola’s offshore Block 17. Source: Total.
cessful completion of the field’s first development well, DTM-
2H, in the offshore Dussafu license. The well was drilled and
completed as a horizontal production well in the Dentale D6
reservoir, encountering a long horizontal section of oil-saturat-
ed Dentale D6 sandstone. Additionally, the well encountered a
gross 121-ft hydrocarbon column, with nearly 92 ft of net pay,
in the shallower Gamba and upper Dentale reservoir section.
Subsequently, Panoro drilled its second development well,
DTM-3H. The results reportedly were in line with pre-drill
expectations, encountering a long horizontal section of oil-
saturated Gamba sandstone. Both development wells were
suspended, pending the arrival and hook-up of the FPSO. The
BW Adolo FPSO then set sail in Singapore, enroute to Tortue
field, in early July. Due to arrive in August, the FPSO report-
edly is on schedule to deliver first oil during the second half
of the year.
With substantial oil and gas reserves, the Republic of Con-
go (Brazzaville) became OPEC’s newest member in June.
Hydrocarbons Minister Jean-Marc Thystère Tchicaya told parliament and the government, as well as civil society organi-
Bloomberg shortly thereafter that the country plans to boost zations, to determine whether or not the plan should press on.
oil production by as much as 65% this year. The increase in “The DRC is committed to not carrying out any oil explora-
output is largely attributed to the planned start-up of com- tion or production in protected areas,” explained Emmanuel
mercial production at Moho North and Banga Kayo, where an Kayumba, chief of staff in Congo’s Oil Ministry. “Even if the
additional 140,000 bopd and 50,000 bopd will be produced, commission comes to a conclusion that we can explore or pro-
respectively. duce oil, we will do it in respect of the laws and regulations in
The country’s increased output aims to alleviate the eco- force, whether local or international.”
nomic effects of the recent downturn. Moreover, the Ministry
of Hydrocarbons is promoting the Congo-Brazzaville License ANGOLA
Round Phase 2. “The Republic of Congo will focus on build- According to GlobalData, Angola will account for approxi-
ing on the momentum of the License Round Phase 1 in 2016, mately 23.8% of Africa’s total capex spending between 2018
which saw 30 international companies register to participate. and 2025. As Africa’s second-largest producer, Angola’s oil
The timetable for the License Round Phase 2 will see the open- production comprises approximately 50% of its gross domes-
ing of the call for tender in September 2018, followed by a major tic product and about 92% of its exports. The country pres-
promotion campaign in Cape Town (South Africa) at Africa Oil ently produces about 1.55 MMbopd, which is down from last
Week in November 2018. The closing date for receipt of tender year’s average of 1.67 MMbopd. Last December, the nation’s
offers in Brazzaville will be June 30, 2019,” Minister Thystère crude production reached a six-month low, which reportedly
Tchicaya explained in a release. was a direct cause of field maintenance. However, Angola re-
In a further push to expand E&P, the Democratic Re- portedly is planning a production increase of about 250,000
public of Congo (DRC) reportedly is considering whether bopd by 2020.
to open parts of its Virunga and Salonga National Parks to Sonangol, the sole concessionaire for E&P in Angola,
drillers. However, the parks contain protected areas of tropi- is said to be in talks with oil majors, including ExxonMobil
cal rainforest that are home to mountain gorillas, which are and Equinor, concerning the potential boost. The company’s
classified as an endangered species. Consequently, it is said chairman of the board, Carlos Saturnino, said that Angola is
that the ministry is enlisting members from the presidency, becoming more attractive to international operators, due to
World Oil® / AUGUST 2018 81
REGIONAL REPORT / WEST AFRICA
more favorable investment terms and improved energy legisla-
tion. Accordingly, the country is expected to see an increased
production level of no less than 1.63 MMbopd next year.
Officials also have alluded to a possible oil and gas bidding
round before 2019. The tender reportedly is for oil blocks in
the Namibe basin, off Angola’s southern coast. “It’s about 10
offshore blocks, although there is nothing concrete at the mo-
ment,” Petroleum Minister Jose Maria Botelho de Vasconcelos
told Bloomberg last August.
The expected production increase is largely ascribed to the
planned start-up of Total’s $16-billion Kaombo project. The
ultra-deepwater development, situated in Block 32, holds an
estimated 660 MMbbl of reserves, spread across six fields. The
fields will be connected through 186 mi of subsea pipelines that
will produce to two FPSO units, each with a treatment capacity
of 115,000 bopd, Fig. 3. According to Total, the fields’ reserves
span a diverse system of reservoirs that reach depths down to
6,397 ft. Once online, output is expected to peak at approxi-
mately 230,000 bopd, according to IEA.
Earlier this year, Eni reported a ramp-up of production at
Ochigufu field, in Angola’s deep offshore Block 15/06. The
field is connected to the Sangos production system, which then
connects to the N’Goma FPSO, in the block’s West Hub. Ac-
cording to the company, several more start-ups are planned for
the block this year, including the UM8 reservoir in the East Hub
and the Subsea Boosting System for Mpungi field. Additionally,
Angola’s Vandumbu field, also in the West Hub, is expected to
start production early next year. Eni said that the planned start-
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ups will add an additional 30,000 bopd to the block’s overall
production, exceeding 170,000 bopd in 2019.
Eni reported more success in Block 15/06 during June
2018, announcing a new oil discovery in the Kalimba ex-
ploration prospect. The Kalimba-1 NFW well, about 31 mi
southeast of the Armada Olombendo FPSO, was drilled by the
West Gemini drillship in a water depth greater than 1,500 ft.
The well proved a 75-ft net oil pay of high-quality oil in Up-
per Miocene sandstones, with excellent petrophysical proper-
ties. Eni said that data acquired from the wellsite indicated a
production capacity in excess of 5,000 bopd. The discovery is
estimated to contain between 230 MMbbl and 300 MMbbl of
light oil in place, overall. According to Eni, the oil find is creat-
ing more exploration opportunities for the southern portion
of Block 15/06 because, until now, it was deemed a predomi-
nantly gas-prone area.
In May, Total reported progress in Angola’s Block 17, Fig.
4. FID was taken on the company’s Zinia 2 project, about 93
mi off Angola’s coast. The project is made up of nine wells that
will be tied back to the Pazflor FPSO. The wells are in water
depths ranging from 1,968 ft to 3,937 ft. According to the com-
pany, Zinia 2 is the first of several potential short-cycle develop-
ments on the block, intended to unlock its remaining resources
through the connection of satellite reservoirs to the existing FP-
SOs. Total E&P President Arnaud Breuillac said in a statement,
“Zinia 2 opens a new chapter in the history of Block 17. This
project will allow [us] to extend the profitability of this prolific
block, with over 2.6 Bbbl already produced.”
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Operators and service firms collaborate
through ground-breaking subsea technology
A growing urgency and
drive for innovation in the
subsea sector has seen the
development of some of the
industry’s guiding, purpose-
built well intervention
technologies.
ŝŝDRUMMOND LAWSON,
Subsea Technologies Ltd.
Collaboration is the driving force of
the global oil and gas industry, as it faces
mounting pressure to increase efficien-
cies, maximize production and streamline
processes, both offshore and onshore. In
turn, these moves hopefully will reduce
costs and boost profits.
However, a fresh mindset is essential,
if the industry is to overcome some of
the challenges that it faces. Accordingly, a
recent shift in culture, which is centered
on a more open-minded approach toward
technological advances and innovations,
is gaining noticeable traction. This is par-
ticularly true in the subsea sector.
This tangible change in attitudes is the
key to unlocking efficiencies through-
out the entire global supply chain, as we
work to maximize the remaining value
from what is—certainly in terms of the
UK Continental Shelf (UKCS)—an
aging basin. According to a recent re-
port by Oil & Gas UK, the Oil and Gas
Technology Centre (OGTC)—which
co-invested £37 million in a variety of
projects—already has played a part in
72 technology solutions, demonstrating
the sector’s desire to embrace innovation
and prolong the life of the UKCS.
The report stated that the UK oil and
gas services sector has faced some of its
toughest times in recent years, as rev-
enues fell by more than £10 billion from
2014 to 2016. However, the study also
highlighted that EBITDA (Earnings Be-
fore Interest, Taxation, Depreciation and
DEEPWATER/SUBSEA
Amortization) fell by £1.7 billion, on av-
erage, over the same period. In this sense,
innovations in digital transformation and
technology, among other activities, have
been vital in helping supply chain compa-
nies sustain their businesses in what has
been a more demanding climate.
GLOBAL TECHNOLOGY
The investment in, and subsequent
progression of, innovative technologies,
particularly within the subsea sector, is
critical to sustaining production into the
next decade.
We already know that technical advanc-
es have been a driving force behind the
increase in total production and improved
well placement in recent years, providing
solutions to complex offshore challenges,
which often require cutting-edge tech-
niques. Many companies also have been
prioritizing methods of maximizing ROI
from existing wells and infrastructure,
which could include well interventions and
workovers, according to Oil & Gas UK.
The industry’s attention also will
soon turn to developing and pinpoint-
ing solutions to extract oil and gas from
high-pressure regions, which are moving
higher up boardroom agendas, as the oil
price increases. The biggest start-up next
year is expected to be the Culzean HPHT
gas field in the central North Sea.
This also has a global focus, as some of
the world’s most challenging deepwater
basins exist in international waters. Ex-
amples include the Gulf of Mexico’s ultra-
deepwater Paleogene, Egypt’s West Nile
Delta, and offshore Azerbaijan, where res-
ervoir pressures and temperatures exceed
the industry’s current technical capacity.
In 2012, BP announced the launch of
“Project 20K,” an R&D program designed
to create bespoke technologies that are
able to drill, complete, produce and in-
tervene in deepwater reservoirs that have
pressures of 20,000 psi at the mud line.
However, investment in deepwater tech-
nology has taken a back seat in recent
years, as a result of the industry downturn.
Fig. 1. The XR Connector’s unique design
ensures that no damage is done, even after
repeated release, offering the ability to
rapidly disconnect from the wellhead in an
emergency situation.
Nonetheless, as the oil price strength-
ens, and with high pressure at the seabed
in these locations, a critical item becomes
subsea connectors that can operate safely
and reliably at these elevated pressures.
They are necessary—particularly at ex-
treme depths—to maintain the highest
productivity levels.
Subsea Technologies Ltd. (STL) is de-
signing and developing products that chal-
lenge the norm, customizing connectors
specifically for deepwater developments,
where the demand is expected to become
more evident, as the market improves.
As the oil price reaches a viable level,
operators are exploring deepwater areas
further, with specific areas of interest in
the Gulf of Mexico. The key is to comple-
ment and enhance a range of innovations
to fit customers’ requirements. Instead of
selling solely from a “shopping list,” the
company tailors its approach to offering
products that are entirely client-led, and
which can configure seamlessly into exist-
ing offshore systems.
In this respect, the company is see-
ing a growing demand to develop tech-
nology for highly complex and critical
World Oil® / AUGUST 2018 83
DEEPWATER/SUBSEA
applications, which has put pressure on
the sector. Nevertheless, STL has suc-
ceeded in launching a number of indus-
try firsts with quantifiable benefits. The
introduction of the Xtreme Release (XR)
Connector and the multi-functional
Stackable Lightweight Intervention Con-
nector (SLIC) are just two examples.
COMING OF AGE
As one of the world’s first purpose-
built, well intervention technologies,
the XR Connector has paved the way for
further subsea technical advancements.
Providing a safety-critical solution to the
ingrained industry issue of maximum
riser disconnect angle, it gives operators
the confidence to disconnect a riser in an
emergency, while offering improvements
in efficiency, productivity and costs.
The connector’s face-to-face technol-
ogy differs fundamentally from all other
subsea connectors, which offer a conven-
tional male-into-female arrangement. In
an emergency scenario, it allows opera-
tors to stay connected to a subsea well for
longer periods of time in adverse weather,
and it minimizes pre-emptive disconnects
when bad weather strikes.
It also reduces the risk of damage to
subsea infrastructure, if the vessel has a po-
sition-keeping failure, while lowering the
risk of damage to a vessel, failure of the ris-
er pipe, and damage to the wellhead and/
or loss of well containment. Accordingly,
Fig. 2. Without the benefits of this technology, the resulting damage could cause a
significant financial burden, as well as a reputational crisis for the operator—particularly
if the damage results in a spill or a well control incident.
84 AUGUST 2018 / WorldOil.com
the connector guards against environmen-
tal, as well as reputational damage.
The high-angle connector enables
vessels to continue operating, while
protecting personnel, assets and the en-
vironment, and defending against the
consequences of dynamic positioning
failure. It essentially solves the challenge
of safely and reliably disconnecting a
riser under a high-bending moment and
without damage—which can occur in
any water depth, as a result of a vessel
drift or drive-off.
The connector was designed and de-
veloped about a decade ago, and is be-
lieved to be the only connector that is able
to disconnect a riser at 100% of its rated
bending capacity. Its success has led to
further variations in the connector family.
FORWARD-THINKING APPROACH
The XR Connector was introduced
to offshore operations following the first
coiled tubing intervention using a rigid
riser, which was deployed for an oil ma-
jor in the North Sea. This was carried out
from a mono-hull vessel and, although
the downhole objectives of the project
were achieved, an entirely bespoke system
was ultimately required for this to become
a regular operation.
Following this realization, the support
of STL was enlisted to deliver a purpose-
built, coiled tubing riser system to over-
come many of the challenges previously
identified. As part of this, the company
completed a Front-End Engineering De-
sign (FEED) study to develop a detailed
conceptual design.
During the global analysis work on
the riser, it was discovered that, to get the
system operating safely in North Sea wa-
ter depths, no existing connector would
be able to ensure the release of the riser
from the subsea christmas tree with abso-
lute assurance that it would not get stuck.
Thus, the XR Connector was the answer.
STL proposed the technology and ul-
timately secured its first launch customer.
The first XR Connector (a 10-ksi, 73/8-in.
bore version) was delivered in 2009, fol-
lowing extensive qualification testing. The
launch customer had designed their in-
tervention system to operate as a hybrid
riser/riserless configuration, which meant
that, in the riserless configuration, the XR
Connector remained in the stack, but its
functionality was not required.
Although the client successfully com-
pleted its first riserless intervention in
2009, it was months before the company
deployed the coiled tubing riser system
on a test well, to prove the operation of
the system. This was the first time that the
connector was disconnected subsea. Ini-
tially, it was just with vertical tension on
the riser. It subsequently included a bend-
ing load, by intentionally moving the ves-
sel off center from the test well, restricted
to approximately 5° from the vertical.
Since completing offshore trials on the
test well, the customer has successfully
completed a number of riser well inter-
vention operations, with more contracted
for the coming years. STL also built an XR
Connector for a Houston-based operator,
which has the potential to be deployed in
the coming months.
In a further example, the 10-ksi, 73/8-
in. version of the XR Connector was
licensed in 2011 to a multi-national cli-
ent, which standardized on this item in
its completion/workover riser (CWOR)
systems. At the request of the customer,
the XR Connector was re-engineered to
optimize the design and manufacture of
the product and meet its precise require-
ments, building a prototype of the modi-
fied connector for re-qualification.
DEEPWATER/SUBSEA SOLUTIONS
Along with the XR Connector, STL’s
engineers have designed a number of oth-
er products that cope with the demanding
requirements of both constant operation
 DEEPWATER/SUBSEA

in harsh conditions and maximum op-
erational uptime, allowing for minimum
maintenance downtime.
The XR Connector’s unique design
ensures that no damage is done, even af-
ter repeated release, offering the ability to
rapidly disconnect from the wellhead in an
emergency situation, Fig. 1. It also allows
the vessel’s crew enough time to respond to
challenging scenarios, without the risk of
getting stuck to the wellhead or damaging
the connector or riser, if the crew does not
react quickly enough. This is a risk present-
ed by all other connectors on the market.
Without the benefits of this technology
(Fig. 2), the resulting damage could cause
a significant financial burden, as well as a
reputational crisis for the operator—par-
ticularly if the damage results in a spill or
a well control incident. Nearly a decade
after the connector’s launch, the company
has responded to the more recent industry
demands for high-performance products
at lower price points by reworking the XR
Connector design to achieve a new deriva-
tive—the HB Connector.
By incorporating the key benefits of
the XR Connector, the company is now
developing the HB Connector, which was
designed following a customer request for
a lower-cost version of the XR for use in
deepwater applications. It will have almost
all of the benefits offered by the XR, except
that it is not recommended for use in water
depths less than 300 m and will cost be-
tween 50% and 65% of the price of the XR,
depending on the configuration selected
by the client. STL already has secured a
launch client, with a firm order for two HB
Connectors to be qualified, manufactured
and delivered before the end of 2018.
Just like the XR Connector, the HB
Connector allows the vessel’s crew
enough time to respond to challeng-
ing scenarios, without the risk of getting
stuck to the wellhead, ultimately improv-
ing productivity levels.
The SLIC technology (Stackable
Lightweight Intervention Connector)
is a further product that makes up STL’s
portfolio, and it features “plug-and-play”
configurability.
The SLIC is a latch-style connector
for Riserless Subsea Well Intervention
(RLWI), Fig. 3. It improves safety, of-
fers increased reliability, ease of mainte-
nance and redundancy. Its design takes
into account the complexities of the en-
tire physical, operational and contractual
environment in which it operates, which
minimizes downtime, not only for the op-
erator but the end user, and subsequently
benefiting the entire industry.
It is typically used at the top of a sub-
sea lubricator assembly as the interface for
subsea wireline pressure control heads and
other riserless subsea intervention system
components. However, it is, at times, used
at the bottom of the lubricator, to enable
rapid connection and disconnection of the
lubricator from the well control package,
either at surface or subsea.
Operators have commented on the
“rugged” and “robust” nature of the con-
nector and its ease of use. One major
operator, who has a SLIC at the bottom
of its lubricator assembly, was able to
deliver a highly successful project to a
client that would not have been possible
without it.
In that instance, the wells required
high-rate injection of stimulation fluid
(much greater than would have been pos-
sible through other access routes) so, after

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World Oil® / AUGUST 2018 85
DEEPWATER/SUBSEA
pulling the crown plugs out of the christ-
mas tree, the lubricator was recovered, and
a modified SLIC mandrel, with an adapter
to two 3-in. hoses, was installed. Using the
two large-bore hoses, a stimulation vessel
was then able to connect and pump very
high-rate stimulation fluids—resulting in
productivity improvements of over 50%
on the project.
The SLIC essentially is a multi-func-
tional access point, enabling a wide va-
riety of tools to connect to it, creating a
highly flexible and adaptable element of
an intervention system. This adaptability
and configuration benefits not only op-
erators but the whole supply chain.
The technology also provides the op-
tion to extend the lubricator of a riserless
intervention system and, as a result, creates
the ability to recover a dropped wireline
toolstring using the same RLWI system.
A CUSTOMIZED PORTFOLIO
In 2015, STL was approached by Chi-
na’s BOMCo, regarding subsea hydraulic
stab plate couplers. The profiles of the
intended couplers were already machined
into their equipment, but the couplers
they had intended to use had become un-
available. Consequently, there was a need
to develop couplers that would fit into the
existing profiles to avoid scrapping the
high-value machined components.
Fig. 3. The SLIC design takes into account the complexities of the entire physical,
operational and contractual environment in which it operates, which minimizes downtime,
not only for the operator but the end-user.
86 AUGUST 2018 / WorldOil.com
The company’s initial coupler develop-
ment strategy had been to enter the subsea
stab plate coupler market by developing
elastomeric sealing couplers for tempo-
rary equipment, but the client required
much more challenging metal-to-metal
sealing couplers for permanent installa-
tion. STL developed five different coupler
configurations and sizes, each with its own
set of design complexities. They required
extremely small components that would
work under very high pressures, while
minimizing the restriction of fluid flow, us-
ing several different exotic alloys for both
corrosion resistance and strength.
While major suppliers of hydraulic
stab plate couplers produce permanently
installed couplers, which use a metal-
to-metal seal when engaged, they use
elastomeric or polymer seals to seal the
poppet when they are disengaged. The
company created a metal-to-metal seal-
ing poppet, enabling the couplers to seal
with metal seals, whether engaged or dis-
engaged. This means the male coupler—
typically left permanently subsea—has
only metallic components that will not
degrade over its lifespan.
The company’s project ultimately al-
lowed it to run a series of internal pro-
cess improvement programs, focused on
more efficient management of orders for
small, standardized products. New stab
plate coupler variants are now in develop-
ment, with orders having been secured
from customers for elastomeric sealing
variants. The first ¼-in., 10-ksi stab plate
couplers have just been delivered to the
customer, with 3/8-in., ½-in. and ¾-in.
variations now in development.
After significant effort, STL offers a
growing hydraulic coupler portfolio in a
lead time of 12 weeks or less. This allows
clients to become increasingly responsive
and supportive of their own customers’
needs, while reducing project delays.
FUTURE INNOVATION
According to Oil & Gas UK, if a sup-
ply chain company can provide a solu-
tion that improves efficiency and reduces
costs, it typically has been able to protect
or grow market share. The timely pro-
gression and development of technol-
ogy and innovation that is driving supply
chain efficiency is essential to help and
sustain production for the future, which
ultimately has global implications for the
offshore/subsea sector.
The deployment of new technology has
been beneficial to more recently drilled de-
velopment wells, which have experienced
increased efficiencies as a direct result. As
an industry, we will need to be even bolder
and braver in terms of how we introduce
and incorporate the latest cutting-edge so-
lutions into the subsea sector, and beyond,
to recover the remaining oil reserves.
This growing urgency and drive for
innovation in the subsea sector has seen
the development of some of the world’s
first purpose-built, well intervention
technologies. Acceptance of new technol-
ogy in the subsea industry is always chal-
lenging, yet, with signs that the industry
is beginning to recover, operators and
service companies are taking a different
approach to component selection. We are
having conversations that are more open
to technological advancements, providing
invaluable performance benefits.
DRUMMOND LAWSON is a
graduate in manufacturing
engineering & management
from the University of Dundee.
He subsequently became a
charted engineer through the
Institute of Mechanical
Engineers. Throughout his career, Mr. Lawson
has held positions with Expro Group,
Schlumberger, Shell and Ramco. He created
Lewis Ltd., which was sold to a Norwegian
buyer in 2008. He then co-founded Subsea
Technologies Ltd. (STL) in 2010, where he
serves as CEO.
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FEBRUARY 2018 / DEFINING CONVENTIONAL, SHALE AND OFFSHORE TECHNOLOGY FOR OIL AND GAS / WorldOil.com
FEBRUARY 2018

2018 FORECAST
Led by the U.S., the global drilling
recovery gains momentum

DIRECTIONAL DRILLING
2018 FORECAST

Turbodrills and matched bits achieve superior

results in hard, abrasive HT formations

SHALETECH: MARCELLUS/UTICA
Record laterals help feed new pipelines,
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G & G TECHNOLOGY
Geo-engineered completion designs
improve recovery in unconventional wells
GULF PUBLISHING COMPANY

Mitch Ingram
Anadarko Petroleum
Corporation has named
Mitch Ingram, formerly
executive V.P., interna-
tional and deepwater
operations and project
management, to the
post of executive V.P.,
international, deepwater
and exploration. Ingram
has nearly 30 years of
experience in the industry
and joined Anadarko in
2015 as executive V.P.,
global LNG. Prior to join-
ing the company, Ingram
worked with BG Group as
executive V.P., technical,
and was a member of
the company’s executive
committee. The company
also announced that Ernie
Leyendecker, formerly
executive V.P., exploration,
is retiring after more than
30 years in the industry.
Marathon Oil Corporation
said that Zach Dailey
will assume the role of
advisor to President
and CEO Lee Tillman,
following his previous role
as V.P., investor rela-
tions. In turn, Guy Baber
will assume the role of
V.P., investor relations.
Most recently, Baber
was managing director,
senior research analyst
and co-head of energy
research at Simmons &
Company International,
energy specialists of Piper
Jaffray.
Crescent Point Energy
Corp has announced that
Ryan Gritzfeldt, formerly
V.P., marketing and
innovation, has assumed
the role of COO. Gritzfeldt
is a professional engineer
and has been with the
company for 14 years. Neil
Smith, COO, and Tamara
MacDonald, senior V.P.,
corporate and business
development, have
stepped down as officers
of the company.
88 AUGUST 2018 / WorldOil.com
PEOPLE IN THE INDUSTRY
MICHELE.COWART@WORLDOIL.COM
James Callahan
Danos has announced
James Callahan as V.P.,
operations and Reed Peré
as V.P., business develop-
ment, sales and market-
ing. With nearly 30 years
of industry experience,
Callahan most recently
served as V.P., project
services. Formerly V.P.,
production, Peré has over
10 years of experience
in the industry. In
addition, Mike Guidry,
who has been with the
company for 25 years
and serves as operations
manager, will move
to general manager
of production. Kevin
Biringer will become the
Permian general manager
of projects.
Devon Energy Corp. said
that shareholders have
elected John Krenicki, Jr.
to the board of directors.
Krenicki expands the
company’s board to 10
members — of whom
eight are independent
directors — and is a senior
operating partner at the
private-equity investment
firm Clayton, Dubilier &
Rice LLC.
Hunter Oil Corp. has
named Al H. Denson,
P.E. as CEO, replacing
Andrew Hromyk, who
has assumed the role
of executive chairman.
Denson has over 40 years
of industry experience,
where he served in
various engineering,
operations and manage-
ment roles.
Northwoods Energy LLC
has announced Nate
Wells as CFO. He brings
almost 20 years of experi-
ence to the company, and
most recently served as
chief accounting officer
and controller at Jonah
Energy LLC.
Flavia Rezende
Flavia Rezende has
been appointed offshore
manager at Bureau
Veritas, North America.
As a naval architect and
marine engineer, with
more than 15 years of
experience in the industry,
Rezende previously held
senior positions within the
company, including man-
ager for technical develop-
ment. Chad Fuhrmann has
been named operations
manager for MAC, a
Bureau Veritas company.
As a marine engineer,
Fuhrmann served with the
U.S. Naval Reserve before
moving into the private
sector 10 years ago.
Additionally, Neale Fraser
has been appointed MAC’s
operations manager,
Europe. Fraser previously
held roles at GL Noble
Denton and Divex UK, and
was part of the original
senior team at MAC when
it was founded in 2011.
Heerema Marine
Contractors (HMC) has
brought in Koos-Jan van
Brouwershaven as CEO
and Wijnand Tutuarima as
CFO. Van Brouwershaven
joins from sister company
Heerema Fabrication
Group (HFG), where he
has worked as CEO, since
2013. He will remain CEO
of HFG, as well. Tutuarima
joined the company in
2013. Prior to this appoint-
ment he was senior V.P.,
finance, at HMC and was a
member of the manage-
ment team.
Jerry Starling has been
appointed director of
diving and ROV opera-
tions at Kreuz Subsea. He
brings more than 25 years
of industry experience to
the business, and most
recently held senior diving
roles at DOF Subsea and
DeepOcean. He will be
based in Singapore.
Neil Hathaway
Deep Casing Tools has
appointed Neil Hathaway
to Middle East regional
manager. With 28 years of
international experience in
the industry, Hathaway has
worked for oilfield service
companies, including
Weatherford, and spent a
decade in field operations.
Eaton has named Molly
Murphy senior V.P., North
American sales, and Jeff
Krakowiak senior V.P.,
marketing and com-
mercial operations. With
more than 20 years of
experience in the electri-
cal industry, Murphy’s
responsibilities will include
sales for industrial, original
equipment manufac-
turer and commercial.
Krakowiak will lead the
marketing communica-
tions, sales operations,
and project management
teams. Krakowiak has
nearly three decades of
experience in the industry.
Dave Bucklew, the current
senior V.P., North American
sales, has elected to retire.
Reactive Downhole Tools
has named Jonathan
Brian as a U.S.-based
senior business develop-
ment manager. Brian has
over 15 years of experience
in the industry, including
technical sales roles for
Isolation Technologies and
TAM International.
BCCK Holding Company
has appointed Bob Swann
as director of project
management and controls.
Swann has spent 27 years
of his career in Texas. His
roles included project and
engineering management
for Pond & Company and
DCP Midstream LP, and
also served as a director of
marketing and V.P., finance
for Solvay Interox, a Solvay
America Company.
Oliver Kassam
Airborne Oil & Gas has
appointed Oliver Kassam
to CEO. Most recently,
Kassam served as
president and managing
director at SBM Offshore
N.V., in Brazil. Additionally,
he served eight years at
Subsea 7. Kassam brings
over 20 years of industry
experience to the com-
pany, and will be based in
IJmuiden, The Netherlands.
PJ Valves has announced
Neil Kirkbride as a
non-executive director.
Kirkbride brings 37 years
of industry experience
to the company, having
worked previously in
similar roles at BEL Valves
and Glenalmond Group.
At BEL Valves, Kirkbride
was managing director for
more than 20 years.
Deloitte has appointed
Shaun Reynolds and Kent
Mackenzie to partner, oil
and gas specialist, in the
Scotland region. Previously,
Reynolds set up and led
the transaction services
team for the Aberdeen
office. Mackenzie,
formerly global head for
Fintech for risk advisory,
Edinburgh, will be leading
international strategy for
the sector. He joined the
company in 2014.
Global Maritime has
named Eric Frank
to oversee its U.S.
operations. Frank, who
will also be responsible
for dynamic positioning
services throughout the
U.S., brings 27 years of
industry experience to the
company. Over the previ-
ous 11 years, Frank held
a variety of leadership
and engineering roles at
Seadrill, including techni-
cal manager for special
projects in the Western
Hemisphere.
 COMPANIES IN THE NEWS
MICHELE.COWART@WORLDOIL.COM

in-house lab utilizes friction Exploration Ltd. and CNOOC

flow loop, rotational viscom-
eter, gas chormatography-mass
spectrometry with pyrolysis,
and X-ray diffraction to perform
post-frac sequential flowback
studies. These studies confirm
the efficacy of the scale control
and microbiocides used during
stimulations and other analyses.
Nexen Petroleum Guyana
Limited. The FPSO is designed to
produce 220,000 bopd, will have
associated gas treatment capacity
of 400 MMcfd, and water injection
capacity of 250,000 bpd. The
FPSO will be spread-moored in
a water depth of about 1,600 m
and will be able to store around 2
MMbbl of oil.

TechnipFMC has been awarded

a contract by Total for the Zinia
Phase 2 field development,
offshore Angola, at a water depth
between 800 and 1,000 m. The
contract covers the engineering,
procurement and construction
of subsea equipment, including
Danos has been awarded a contract by Shell Exploration and nine subsea tree units, as well
Production Company to provide coatings for Shell’s deepwater as wellheads, subsea control
Appomattox platform in the Gulf of Mexico. The coatings systems, connection systems and
project should last approximately six months. Previously, Danos associated equipment. This con-
fabricated three boarding valve skids and one service line skid tract also covers support services
out of its Amelia, La., facility for Appomattox, which required for assembly, test, mobilization Oilfield technology firm, Airborne
support from the company’s project management, fabrication, and installation. Oil & Gas, has commenced a
coatings and automation service lines. In the Gulf of Mexico, 80 qualification program for a
mi off the coast of Louisiana, the Appomattox platform is one thermoplastic composite pipe
of Shell’s new deepwater investments in the Gulf and is set to Element Materials Technology riser for a major operator in South
begin production before the end of the decade. Photo: Shell. has opened a new laboratory in America and Subsea 7 (a minority
Singapore. The ISO 17025-accred- shareholder). The conditional
ited materials testing laboratory process involves analysis of global
offers specialized metallurgical and riser behavior, as well as
Engineering consultancy Thornton within its first year of trading, fracture toughness testing for con- installation. The objective of this
Tomasetti has agreed to acquire after announcing its move to tractors and fabricators in the Asia project, set to begin in second-
technical consulting specialist MMI premises in Aberdeen. The well- Pacific region. The sour service quarter 2018, was to develop a
Engineering. Currently owned intervention company’s portfolio corrosion testing facility includes material that would allow
by international environmental includes thru tubing, operational multiple baths for ASTM G48 operators to use a free-hanging,
consultancy, Geosyntec, the new design, project management, and corrosion testing and the capacity catenary configuration, to be
company will be rebranded as MMI service rentals, focusing on the UK to conduct coating testing, such installed by pipe-lay vessels.
Thornton Tomasetti and will be in and European markets, with plans as cathodic disbondment testing, Photo: Airborne.
the UK and Australia. In the U.S., for global growth. The Aberdeen- at room temperature and elevated
the business will operate under the based firm is housed in a 5,750 temperature, as well as indentation
Thornton Tomasetti name upon ft2 office/workshop space, and and impact testing. China National Offshore Oil
completion of the deal. The goal is in the process of a significant Corporation has signed a
of the union is to offer clients a investment in new equipment. production sharing contract with
full suite of risk management and ConocoPhillips has entered into Roc Oil Company and Smart Oil
technical security services with an an agreement to sell a subsidiary Investment Ltd for Weizhou 10-3W
expanded European, Australasia Shell Integrated Gas Thailand Pte to BP for an undisclosed price. oil field (18-km2 total area, 40-m
and Far East presence. Ltd and Thai Energy Company Ltd, The subsidiary will hold a 16.5% water depth,) and Block 22/04
have sold their 22.2222% interest interest in the BP-operated Clair (80-km2 total area, 40-80-m water
in Bongkot field and adjoining field, with ConocoPhillips retain- depth). The South China Sea areas
Integrated marine service acreage offshore Thailand to PTT ing a 7.5% interest. Additionally, are in the Beibu Gulf basin and
company C-Innovation, LLC, Exploration & Production Public simultaneous agreements were are approximately 60 km from
an affiliate of Edison Chouest Company Limited (PTTEP) and reached to acquire BP’s 39.2% the southern coast of China and
Offshore, will be responsible for PTTEP International Limited, a interest in the Greater Kuparuk northwest of Hainan Island.
flushing and preparing 60 mi of wholly-owned subsidiary of PTTEP, Area in Alaska and BP’s 38% inter-
pipeline for decommissioning in for a transaction value of $750 mil- est in the Kuparuk Transportation
the Bass Lite Flowline decom- lion. This sale, consisting of Shell’s Company for an undisclosed Al Yasat Company for Petroleum
missioning project for Apache stake in Blocks 15, 16 and 17, and price. The Greater Kuparuk Area Operations, a subsidiary of
Corporation. Situated in the Block G12/48, was announced in acquisition is subject to co-owner the Abu Dhabi National Oil
Mississippi Canyon area of the first-quarter 2018. PTTEP operates pre-emption rights. Company (ADNOC) has awarded
Gulf of Mexico, the project was Bongkot and, with completion of an engineering, procurement
expected to last approximately this transaction, has increased its and construction contract, for
two weeks, and it required two stake to 66.6667%. The remaining ExxonMobil subsidiary Esso full development of the offshore
vessels with coiled tubing units. 33.3333% belong to Total. Exploration and Production Bu Haseer field, to Abu Dhabi’s
The project was slated to be gas- Guyana Limited has awarded National Petroleum Construction
lifted using hot tap, while flushing SBM Offshore contracts to Company. The agreement covers
operations were executed. Chemstream has evolved perform FEED for a second offshore facilities, which will see
from its beginnings in the coal FPSO at the Liza development production capacity from Bu
industry to analyzing formation in the Stabroek Block of Guyana. Haseer increase from today’s
Start-up Wellpro Group is geology and frac water quality The firm operates the Stabroek 8,000 bopd to 16,000 bopd
expected to create new jobs for oilfield applications. The Block with partners Hess Guyana in 2020.

World Oil® / AUGUST 2018 89

 NEW PRODUCTS AND SERVICES
MICHELE.COWART@WORLDOIL.COM

Non-contact,
Heavy-duty, medium-pressure and variable pumps loop-powered
provide efficient and durable fuel transfer transmitter
Plenty-brand screw and vane
pumps from SPX Flow are
improves
engineered to pump heavy resolution
viscous fluids, and are ideal for
forced lubrication of rotating
machinery and fuel transfer
processes. The TRIRO triple
screw pumps offer quiet,
pulse-and-vibration-free
operation. With only three
moving parts, installation is
simplified, minimizing impact
on other equipment. Also,
the vane pumps offer gentle,
low-shear pumping action, low
rate of wear, lower running The Pulsar model R86 non-contact
costs, and variable flow without the need for variable-speed drive systems. Additionally, the Twinro radar transmitter from Magnetrol
two-screw pumps provide heavy-duty fuel transfer in accordance with API specifications. has a 26-GHz radar signal with a
Photo: SPX Flow. smaller wavelength and antennas,
and improved resolution. This
www.spxflow.com results in a smaller-beam angle
that allows for installation into
process connections as small as 1½
Seismic acquisition High-resolution Customized in. (38 mm). Automated echo cap-
ture conveys real-time waveform
system traverses images, models cutter technology and trend data, showing up to 20
marsh zones from subsurface enhances PDC events, including diagnostic and
configuration data to pinpoint any
Sercel has launched a transition optimize accuracy bit performance issues. The instrument uses circular
polarization, eliminating the need
zone version of its 508XT seismic Emerson announces the release to rotate the antenna orienta-
acquisition system, capable of of the Paradigm 18 integrated tion during commissioning. This
mixing wireless nodes, autono- software solution suite. This release simplifies installation and delivers
mous sections and connecting includes advanced technologies proper alignment in virtually every
links, either on land or in transi- that use reservoir intelligence and application. High-temperature
tion zones. Designed to deploy enhanced operational certainty, antennas are designed for use in
in marsh zones, the reinforced and support effective asset operating conditions up to 750°F
hardware has a breaking strength management. Artificial intelligence (400°C). Photo: Magentrol.
to 300 daN and can withstand capabilities enable identification
the challenges of operating in of geologic facies from seismic Force cutters from Varel Oil & http://R86.magnetrol.com
shallow water, up to 25 m. With and wellbore data. This unify- Gas Drill Bits are a set of unique
real-time monitoring capabili- ing platform encompasses user cutter geometries, designed to
ties, the plug-and-play system interface and data management, optimize drilling performance by BioSurfactants
features local storage, autono- artificial intelligence capabilities, fine-tuning the bit’s interaction break down oil/
mous model automatic rerouting, support for cloud hosting, and with the rock. Research into
and utilizes fault-tolerant X-Tech high-resolution processing, imag- shaped cutter design has created water without
architecture. Real-time monitor- ing, interpretation and modeling four new figures to match cutting
action to drilling conditions and
changing
ing capability allows quality geoscience software, delivering
control of the complete spread. more accurate subsurface models. objectives. The OVAL, TRIFORCE, hydrocarbon
SCOOP, and FANG cutters have
www.sercel.com www.pdgm.com/paradigm18 raised ridges, concave faces,
structure
and other unique features. Each Nanotera Group has introduced
Ultra-fine solids removal, cuttings pattern provides a different plant-based cleaning agents to
cutting action to reduce torque, replace chemical and hazardous
treatment improve drilling fluid recovery pre-fracture the rock, create products. This biodegradable
a progressive back rake, and product can be applied in
Halliburton has unveiled its BaraOmni hybrid separation system that enable non-standard positioning enhanced oil recovery, tank clean-
removes ultra-fine, low-gravity solids, resulting in optimal fluid systems. on the bit. Utilizing bit design ing, equipment maintenance, oil
The compact technology eliminates the need for dilution and improves software, a virtual approximation herding, oil/water separation and
the ability to recover drilling fluids, so more wells can be drilled with of ROP, and other variables is rig maintenance. By weakening
less fluid volume. Additionally, mobile technology allows drilling fluids, determined, and adjustments are the polar attraction of oil to the
contaminated solids and other hydrocarbon waste streams to be treated made for better performance. surface, the surfactants break
with a single system. It replaces traditional complex solids control and The firm reportedly has been down organic contaminants,
waste management equipment set-ups. As a result, the operator can testing in Permian, STACK and oil and water emulsions and
minimize waste transportation, off-site treatment and storage to reduce Canadian laterals with good suc- remediate hydrocarbons without
environmental exposure and total cost of ownership. cess. Photo: Varel Oil & Gas. polluting the treated product.
www.halliburton.com www.vareloilandgas.com www.nanoterra.com

90 AUGUST 2018 / WorldOil.com
 ADVERTISERS IN THIS ISSUE

AF Global Corp .............................................................33 Gulf Energy Information ................................................. JFE Steel..........................................................................31

www.afglobalcorp.com/NRG www.jfetc.com
Classified Pages ........................................................92
American Association of Drilling Engineers ........22 K+S Kali GmbH .............................................................67
www.aade.org
Events—HPHT ........................................................... 72 www.kali-gmbh.com
Ariel Corporation .........................................................63 Events—PE Mexico Energy Strategy Forum ....95 Magnetrol International ............................................... 8
www.arielcorp.com/whoweare Events—Shaletech ..................................................52 www.magnetrol.com
Baker Hughes, A GE Company .................................16 Events—WGLC ..........................................................82 Nissan Chemical America Corporation ..................18
www.bhge.com/better www.nanoactiv.com
Events—WO Awards ...............................................85
C&J Energy Services ...................................................39 NOV.................................................................................... 2
www.cjenergy.com Gulf Video Division ..................................................92 www.nov.com/offshoreupgrades
C&J Energy Services ................................................... 57 WO Circulation ...................................................28, 87 Offshore Northern Seas Foundation ...................... 27
www.cjenergy.com/gamechanger www.ons.no
WO Permian Basin Map ...........................................11
Cold Pad .........................................................................24 Packers Plus ..................................................................58
www.cold-pad.com
WO Webcast-- DNOW.............................................91 www.packersplus.com
Covia Corportaion .......................................................64 WO Webcast-- Summer Frac Forum..................76 Shale Support ...............................................................47
www.coviacorp.com/wo Halliburton .....................................................................96 www.shalesupport.com
Deepwater Executive Summit..................................20 www.halliburton.com/advancedcompletions Society Of Petroleum Engineers ............................. 77
www.deepwaterexecsummit.com www.go.atce.org/ATCEregister
GWDC...............................................................................14 Halliburton .....................................................................36 Tetra Technologies Inc................................................45
www.gwdc.com.cn www.halliburton.com/geometrix www.tetratec.com
Enventure Global Technology ..................................67 Hardbanding Solutions By Postle Industries ........71 Tomax AS ........................................................................12
www.enventuregt.com/eseal www.tomax.no
www.hardbandingsolutions.com
Gai-Tronics .....................................................................56 Varel International ....................................................... 10
www.gai-tronics.com Hi Crush Proppants ....................................................... 6 www.vareloilandgas.com
Gardner Denver .............................................................61 www.hicrush.com/propstream Volant Products Inc. ....................................................35
www.redlinepacking.gardnerdenverpumps.com Hydrozonix....................................................................... 5 www.volantproducts.ca
Geodynamics .................................................................51 www.hydrozonix.com
Weir Oil & Gas ............................................................... 75
www.perf.com www.edgeservice.weir
GR Energy Services ......................................................41 Industrial Rubber ........................................................... 4 Yellowjacket Oil Services LLC ..................................55
www.grenergyservices.com www.iri-oiltool.com www.yjosllc.com

This index and procedure for securing additional information are provided as a service to World Oil advertisers and a convenience to our readers. Gulf Energy Information is not responsible for omissions or errors.

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92 AUGUST 2018 / WorldOil.com

AUGUST
AAPG, Latin America and
Caribbean Region Energy
Opportunities Conference,
Aug. 22–24, Hilton Hotel
and Convention Center,
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P: +1 (800) 364-2274
F: +1 (918) 560-2665
latinamerica@aapg.org
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IADC/SPE, Asia Pacific Drilling
Technology Conference and
Exhibition, Aug. 27–29,
Bangkok, Thailand
(See box for contact information)
SPE, Artificial Lift Conference
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28–30, The Woodlands Waterway
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SPE, Liquids-Rich Basins
Conference – North America,
Sept. 5–6, The Petroleum Club,
Midland, Texas
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Imperial, Acapulco, Mexico
P: + 52 (55) 5599 2860
Adolfo.alejandro.huidobro@
pemex.com
www.congresomexicano
delpetroleo.com
OCTOBER
NOIA, 2018 Fall Meeting,
Oct. 3–5, Hyatt Regency
Hill Country Resort,
San Antonio, Texas
P: +1 (202) 347-6900
ann@noia.org
www.noia.org
IADC, Contracts & Risk
Management Conference,
Oct. 9–10, Norris Conference
Center – CityCentre,
Houston, Texas
(See box for contact information)
IPAA, Oil & Gas Investment
Symposium Chicago, Oct. 10,
Mid-America Club, Chicago, Ill.
P: +1 (202) 857-4722
F: +1 (202) 293-0681
kdaugherty@ipaa.org
www.ipaa.org
World Oil/Gulf Energy
Information Events,
World Oil Awards, Oct. 11,
Houstonian Hotel Club and Spa,
Houston, Texas
(See box for contact information)
AAPG, Mid-Continent Section
Field Conference, Oct. 12–14,
Cornhusker Marriott Hotel,
Lincoln, Neb.
P: +1 (402) 472-9801
cfielding2@unl.edu
www.aapg.org/events
SEG, International Exposition
and 88th Annual Meeting,
Oct. 14–19, Anaheim
Convention Center,
Anaheim, Calif.
P: +1 (918) 497-5581
F: +1 (918) 497-5558
registration@seg.org
www.seg.org/Annual-Meeting-2018
SPE, Russian Petroleum
Technology Conference,
Oct. 15–17, Holiday Inn
Sokolniki Hotel, Moscow, Russia
(See box for contact information)
IADC, Critical Issues
Latin America Conference
& Exhibition, Oct. 16–17,
Hyatt Regency Mexico City,
Mexico City, Mexico
(See box for contact information)
SPE, International Hydraulic
Fracturing Technology Conference
and Exhibition, Oct. 16–18,
Muscat, Oman
(See box for contact information)
PBIOS, Permian Basin
International Oil Show,
Oct. 16–18, Ector County
Coliseum, Odessa, Texas
pbioilshow@pbioilshow.org
www.pbioilshow.org
IADC, International Well
Control 2018 Conference
& Exhibition, Oct. 23–24,
Melia Milano Hotel, Milan, Italy
(See box for contact information)
SPE, Asia Pacific Oil & Gas
Conference and Exhibition,
Oct. 23–25, Royal International
Convention Centre,
Brisbane, Australia
(See box for contact information)
SPE, Annual Caspian Technical
Conference & Exhibition,
Oct. 24–26, Astana, Kazakhstan
(See box for contact information)
Gulf Energy Information Events,
Women’s Global Leadership
Conference in Energy (WGLC),
Oct. 29–30, Royal Sonesta,
Houston, Texas (See box for
contact information)
World Oil/Gulf Energy
Information Events, HPHT
Drilling, Completions and
Production Conference,
Oct. 30–31, Norris Conference
Center – CityCentre,
Houston, Texas
(See box for contact information)
dmg events, Gas Asia Summit
Exhibition and Conference,
Oct. 31–Nov. 1, Marina Bay Sands,
Singapore
P: +65 6422-1475
marketing@gasasiasummit.com
www.gasasiasummit.com
NOVEMBER
AAPG, 2018 International
Conference & Exhibition,
Nov. 4–7, Cape Town
International Convention Centre,
Cape Town, South Africa
P: +1 (918) 560-9431
amahan@aapg.org/www.aapg.org
OTC, Arctic Technology
Conference, Nov. 5–7,
Hilton Americas,
Houston, Texas
P: +1 (972) 952-9494
F: +1 (713) 779-4216
meetings@otcnet.org
www.otcnet.org/arctic
Argentine Oil and Gas
Institute (IAPG),
10th Hydrocarbon
Exploration and Development
Congress, Nov. 5–9,
Mendoza, Argentina
P: +54 (11) 5277 4274
F: +54 (11) 5277-4263
congresos@iapg.org.ar
www.iapg.org.ar
IADC, Annual General Meeting,
Nov. 7–9, The Ritz-Carlton,
New Orleans, La.
(See box for contact information)
dmg events, European
Autumn Gas Conference (EAGC),
Nov. 7–9, Andel’s by Vienna
House Berlin,
Berlin, Germany
P: +44 (0) 203-615-2393
jamiegordon@dmgevents.com
www.theeagc.com
IPAA, Annual Meeting,
Nov. 11–13, The Ritz-Carlton,
New Orleans, La.
P: +1 (202) 857-4722
F: +1 (202) 293-0681
kdaugherty@ipaa.org
www.ipaa.org
dmg events, Abu Dhabi
International Petroleum
Exhibition and Conference,
Nov. 12–15, Abu Dhabi
National Exhibition Centre,
Abu Dhabi, UAE
P: +971 (0)2 444-4909
adipec.sales@dmgeventsme.com
SPE, Symposium:
Decommissioning and
Abandonment, Nov. 27–28,
Kuala Lumpur, Malaysia
(See box for contact information)
International Association of
Drilling Contractors (IADC)
P: +1 (713) 292-1945
F: +1 (713) 292-1946
info@iadc.org
www.iadc.org/events
Society of Petroleum
Engineers (SPE)
P: +1 (972) 952-9393
F: +1 (972) 952-9435
spedal@spe.org
www.spe.org/events/
calendar
World Oil/Gulf Energy
Information Events
P: +1 (713) 529-4301
F: +1 (713) 520-4433
energyevents@
gulfenergyinfo.com
www.worldoil.com/events
World Oil® / AUGUST 2018 93

Entrepreneurial spirit
It started in 1859, with Edwin Drake in
Titusville, Pa., and spread like wildfire to
other parts of the U.S. An incredible entre-
preneurial flame, fanned by winds from a
democratic system, encouraged wildcatters
to invest capital and sink wells in search of
elusive hydrocarbon riches. In 1865, com-
mercial oil production was discovered in
Humboldt County, southern California,
and in 1870, John D. Rockefeller formed
Standard Oil of Ohio. In January 1901,
Spindletop was discovered when Anthony
Lucas drilled a well near Beaumont, Texas,
that tapped an oil-charged formation that
blew six tons of 4-in. drill pipe over the
crown block, to the delight of the well’s
owners (most likely).
When these risk-takers were success-
ful, they profited from their ideas and good
fortune, without excessive interference
from the government or regulatory bodies.
That was yesterday, and the good-old-days
are gone, right? Well, despite increased reg-
ulations and pressure from enviro-groups,
the industrious spirt that defined the U.S.
oil industry at the turn of the century is
very much alive and flourishing.
Rumpelstiltskin. The Permian basin
contains billions of bbl of high-quality
crude, but the surface is a barren waste-
land filled with tons of worthless sand,
right? Wrong! A perfect example of entre-
preneurial fortitude is taking place on the
windswept dunes of the West Texas plains.
The money-multiplying effect of the
Permian boom is fueling the emergence
of mining operations that rival the original
U.S. frac sand operations in northwestern
Wisconsin. In the last 12-months, a multi-
tude of mines have been built near Mona-
hans, Texas (RR Dist. 8). The first one was
constructed by Hi-Crush Partners in July
2017, and 10 more immediately followed.
Another 10 are in the planning/construc-
tion stage (Bloomberg).
The location of the Hi-Crush mine (et
al.) enables proppant to be trucked to the
well site rather than transported by rail.
This significantly reduces costs and lo-
gistical complexities for E&P and service
94 AUGUST 2018 / WorldOil.com
THE LAST BARREL
CRAIG FLEMING, TECHNICAL EDITOR
companies. In addition to the company’s
full-scale facility at Kermit, they operate
transload facilities near Pecos, Odessa and
Big Spring, and can service up to 95% of
proppant consumption within a 75-mi ra-
dius. The Kermit facility has a capacity of
3 MMtons of sand/year. However, West
Texas sand is not as well-rounded as its
Wisconsin cousin, but it’s much cheaper.
Shipping costs from Wisconsin come to
around $90/ton. That’s triple the $25 that
it costs to truck in the Texas sand.
Too much sand! With 11 mines op-
erating and another 10 planned, the risk
of overproduction is a legitimate con-
cern. Although officials at the local min-
ing companies are not overly alarmed,
industry analysts suggest over-expansion
is a major risk, even if the frac sand mar-
ket remains strong. “Although things look
great today, we can’t assume this is going
to last,” said Joseph Triepke, an analyst at
Infill Thinking. “Look at all this capacity.”
Boomtown (for now). Together,
these new operations are expected to
mine and ship about 22 MMtons of sand
in 2018 to drillers in the Permian basin.
This immense volume equals 25% of total
U.S. supply. And industry experts say the
figure could climb to over 50 million tons
in roughly two years. At today’s price of
$80/ton, these 11 mines should generate
about $2 billion in 2018.
Utah oil sands. Oil seeps and sur-
face shows have attracted wildcatters and
businessmen to areas that eventually were
developed into prolific oil-producing re-
gions. This familiar scenario is unfolding
in the Uinta basin, 60 mi south of Vernal,
where Petroteq Energy has developed an
innovative process to extract commer-
cial quantities of crude from the area’s
oil-bearing sands. Although several com-
panies have tried to squeeze crude from
Utah’s vast oil sand deposits, none have
had commercial success (Bloomberg).
Petroteq’s extraction procedure was
developed by Ukrainian chemist Vladimir
Podlipskiy, the company’s chief technol-
ogy officer. The process starts when small
chunks of oil-bearing sand, mined at the
surface, are fed into a vertical centrifuge
loaded with a proprietary blend of solvents.
As the solids fall out of the mixture, the
liquid is heated and the solvents evaporate
while the oil is piped out. The chemical
vapor is condensed and run back through
the process. According to Petroteq Presi-
dent Jerry Bailey, “our extraction system
uses no water and recovers/recycles 99%
of our proprietary solvent.” This virtually
eliminates environmental concerns about
water requirements and large, toxic tailing
ponds that are typical of other oil sands
operations. Petroteq said it’s targeting a
break-even cost of $30/bbl, much lower
than oil sands production in Alberta, that
breaks even at around $65-$75/bbl, ac-
cording to IHS Markit.
The Utah Geological Survey estimates
that the state’s oil-sand deposits contain
up to 13 Bbbl of oil. Petroteq CEO David
Sealock said, “we have enough oil here to
extract 10,000 bopd for over 25 years.”
The company projects that it will produce
its first 1,000 bbl in September.
Under the radar? During the 1978-
1981 drilling boom, fund-companies
were promoting Austin Chalk prospects
in South Texas. The chalk was a promot-
ers’ best friend. After fracing, the tight
formation would surge back with high
volumes of crude, but production would
cease before pay-out, leaving investors
with a loss (but promoters with a gain).
Horizontals were attempted in Texas dur-
ing the past decade, but variable produc-
tion again hampered chalk development.
Never fear, EOG Resources to the rescue.
EOG captured the industry’s attention
when its Eagles Ranch 14H, in Avoyelles
Parish, La., produced 80,000 bbl of oil in
110 days (Wood Mackenzie). “It’s the first
modern completion in this portion of the
Austin Chalk. Early results suggest it could
be a breakthrough for Louisiana acreage.”
Are you convinced? If not, you
should be.
ŝŝCRAIG.FLEMING@WORLDOIL.COM
 MEXICO
ENERGY STRATEGY FORUM
LEGACY OF THE ENERGY REFORM
– KEEPING THE MOMENTUM

3 October 2018, Mexico City

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reviewed topics of great interest to investors,
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