TOPICS OF INTEREST
Equinor Taps Its First Petroleum Engineer To Become CEO In November
He started in the oil and gas business running logs in the 1990s and by the end of the decade became a petroleum engineer at Equinor. Now, he is set to take over the company’s top position.
Oil Major Invests in Nuclear Start-up Company
Zap Energy will use Chevron’s investment to develop its technology, a next-generation modular nuclear reactor with an aim toward cost-effective, flexible, and commercially scalable fusion.
Occidental Recalibrates: More Writedowns, One Permian Rig, Algerian Assets Not for Sale
The large independent joins the ranks of many other oil and gas producers who have been forced to reduce their exploration activity and the value of their booked reserves due to lower energy prices.
Shale Consolidation: Two US Tight-Gas Producers Merge in All Stock-Deal
The latest deal is set to make Southwestern Energy the third-largest producer in the gas-rich Appalachian Basin.
Despite Big Profit Drop, Saudi Aramco Seeks Production Ceiling of 13 Million B/D
The world’s largest oil company saw profits fall by nearly three quarters during the previous quarter but it still weathered the storm better than international majors.
GOM E&P Fieldwood Energy Files Chapter 11, Its Second Since 2018
The Gulf of Mexico E&P exited its first bankruptcy quickly with a strategy that included the acquisition of Noble Energy’s GOM assets, which increased its production volumes 25% when the WTI approached $80/bbl. Fieldwood’s financial woes in today’s economics may be tougher to overcome.
Giant Discovery Raises Norwegian Oil Project Hopes
Dugong could become a new North Sea production hub says offshore explorer Neptune Energy upon its latest discovery.
ExxonMobil Looking at a 20% Reserve Reduction
ExxonMobil is reluctant to join other big oil companies writing down the value of their reserves. It could chop its reserves by 20%, but it has not made a final decision.
After 4 Years, Range Resources Exits Louisiana Tight-Gas Play
The Pennsylvania-based producer will leave Louisiana where profiting from tight-gas fields has proven difficult and focus on its legacy assets in the Marcellus Shale.
BP Pivots From IOC to Integrated Energy Company as It Resets for Energy Transition
Supermajor announces actions to achieve net-zero ambition and reshape business. It also noted that it will not seek to explore in countries where it does not already have upstream activities.
Canadian Oil Sands Output Cut 1 Million B/D: What Could Go Wrong?
Oil sands producers predicted they could reduce production by 300,000 B/D by turning down steam injection. This will test methods to reduce, rather than stop, injection to avoid the damage caused by rapid cooling in some wells.
Aker Solutions Shares New Details of Unmanned FPSO Concept
While it remains today only an idea, there are but a few barriers keeping an unmanned floater from being realized, according to one of the world’s leading offshore engineering firms.
Cybersecurity: Preventing Infection in a Body of Data
The oil and gas industry is increasingly characterized by complex connectivity, but our digital dependency brings a new realm of cyber risks. Are we cyber-ready?
Application of Multizone Water Injection Downhole Flow Control Completions With Fiber-Optic Surveillance
A multizone water-injection project has ultimately proved a method of using intelligent completion interval-control valves in place of traditional sand-control completions in soft sand reservoirs.
Using a Digital Twin in Predictive Maintenance
Often it is too difficult to create the fault conditions necessary for training a predictive maintenance algorithm on the actual machine. A digital twin generates simulated failure data which can then be used to design a fault-detection algorithm.
Adaptive Drilling Application Uses AI To Enhance On-Bottom Drilling Performance
An intelligent drilling optimization application performs as an adaptive autodriller. In the Marcellus Shale, ROP improved 61% and 39% and drilling performance, measured as hours on bottom, improved 25%.
Formation-Fluid Microsampling While Drilling Enables Complete Reservoir Characterization
The complete paper presents a technical discussion of a new microsampling technique for LWD and a corresponding wellsite technique to provide compositional interpretation, contamination assessment, reservoir-fluid compositional grading, and reservoir compartmentalization assessment.
Integration of Formation Evaluation Data Overcomes Offshore Coring Challenges
A well was drilled into a prospective unconventional mudstone play offshore Norway. Two of five coring runs were successful while the rest yielded little to no core recovery. Subsequent investigation of the core substantiated that the coring issues largely had natural causes.
Cased-Hole Solution Assesses Tight Reservoirs
The complete paper presents a solution that assesses tight matrices and natural fractures at a level not previously achieved. At the tight-matrix level, advanced nuclear spectroscopy is carried out with a new pulsed-neutron device that achieves simultaneous time- and energy-domain measurements.
Developing Technologies Can Lower Subsea Tieback Cost
The traditional subsea tieback model is evolving, supported by advances in flow assurance that allow tiebacks over much longer distances and by the introduction of new technologies that increase overall cost effectiveness.
Subsea Multiphase Gas Compression System Offers Competitive Advantage
In 2015, the world’s first subsea multiphase gas compression system was installed offshore Norway. The system comprises two-off 5-MW machines configurable for serial or parallel compression. This system has now gained considerable and valuable operational experience.
Flow-Assurance Strategy Manages Subsea Asset Without Continuous MEG Injection
The paper describes options for hydrate and integrity management and the required modifications to both subsea and topside facilities to enable an operational philosophy change.
Public/Private Partnership Improves Healthcare Outcomes in Papua New Guinea
In 2013, ExxonMobil PNG facilitated a public/private partnership to improve healthcare education at the University of Papua New Guinea and clinical management in child health at Port Moresby General Hospital and other facilities.
Preparedness Holds Key to Management of Infectious Diseases Offshore
International SOS has led medical services operations on offshore installations globally and has managed clinical cases in which patients presented with signs and symptoms of known infectious illnesses.
Operation Planning Tool Improves Quality, Efficiency of Offshore Risk Management
The complete paper discusses Equinor’s operation planning tool, developed to present planners with the technical conditions of a platform, identify potentially dangerous combinations of concurrent activities, and propose learnings from 8 years of incident recordings.
Technology, Innovative Approaches Enhance Road Safety for the Oil and Gas Industry
The complete paper describes a service company’s approach to the development and application of technology and innovative solutions to improve driving performance on the basis of extensive data analysis.
Task Force Updates Guide Presenting Best Practices in Environmental Management
The complete paper describes the development of, and summarizes the major changes and additions to, the Environmental Management in the Oil and Gas Industry guide.
Pilot Program in Mexico Classifies Oil and Gas Projects Using UN Framework
A pilot project was initiated to classify oil and gas projects in Mexico using the United Nations Framework Classification.
Halliburton Launches Innovation Lab for Clean Energy Startups
Providing a kick start for nascent companies developing clean energy technologies, Halliburton launched its innovation lab, Halliburton Labs. Its first participant is a nanomaterials company developing fireproofing and insulation technology.
Shell, Chevron Combined Quarterly Losses Top $25 Billion
Shell and Chevron lead the pack in a slew of Q2 losses with $18.1 billion and $8.3 billion, respectively. ExxonMobil, ConocoPhillips, Royal Dutch Shell, Petrobras, and Repsol also posted losses. The tally of these global majors’ losses in a single quarter tops $30 billion.
Denbury Files for Bankruptcy With a Plan To Slash Debt
Add Denbury Resources to the list of oil companies filing for bankruptcy protection with a plan that may make for a quick trip through the debt-reduction process.
Maersk Invests in Rocket Science Technology To Achieve Carbon-Neutral Drilling
The offshore drilling contractor’s latest effort to curb emissions relies on technology developed during the US space shuttle program and could become commercial by 2022.
GE To Fully Divest From Baker Hughes
Just 3 years after its landmark merger, GE has announced that in the next 3 years it plans to sell of all its remaining shares in Baker Hughes.
Equinor Names Potential CEO Successors
Four Equinor insiders are short-listed to succeed the current chief executive who is expected to step down from the Norwegian oil and gas company later this year.
Tomorrow’s US Fracturing Fleet Will Be Smaller Than Usual, but Better Than Ever
The forces of low oil prices and new efficiency trends are converging to remake the US pressure-pumping business into one that can complete more wells with less horsepower than ever. However, that might also mean service provider margins remain low for much of this new decade.
As Oil Companies Fade Away, Who Will Buy Their Wells?
Shale producers proved they could pump out record volumes of oil by drilling horizontal wells and then fracturing them intensively. Now the industry needs to find buyers for many wells and acreage with hard-to-determine values.
ConocoPhillips To Acquire Canadian Unconventionals in Montney Shale
The all-cash deal bucks a recent trend of international oil companies divesting of Canadian assets and adds 15,000 B/D of production to the buyer’s total.
Australia Presents Opportunity for E&P Companies Looking Beyond US Unconventionals
Black Mountain executives outlined the key criteria they used to determine why Western Australia was a prime location for private-equity investment when looking at international unconventional plays.
From Running 13 Rigs to “Just Sell What You Have Got”
A company built with a plan to quickly profit from the shale boom began a slow decline when oil prices sank to $50/bbl. Others could be following it to bankruptcy court this year.
Unconventionals at a Crossroads: Where Do We Go From Here?
URTeC 2020’s opening plenary session panel shared insights into how the shale industry can scale technology, fiscal restraint, and social responsibility into a sustainable business case for a new energy landscape.
Online Technology Platform To Support UK Energy Transition
The goal of the platform is to connect technologies to operators, developers, and end users in the UK oil, gas, and renewable energy sectors and be the catalyst for rapid technology deployment.
Are Half the Companies in Shale Really Superfluous?
Judgment day may finally have arrived for weak players in the shale business. Deloitte ranks nearly half of the companies as extraneous. What happens next?
BJ Services To Sell Assets as It Seeks Bankruptcy Protection
The legacy service provider operates in every major shale basin in the US and Canada. In court filings, it says it will seek additional funding to sell its equipment and wind down operations.
Chevron Scoops Up Noble Energy in $5-Billion Deal
Chevron strengthens its North American position with assets in the Permian, DJ, and Eagle Ford basins and offshore in Israel and West Africa.
Operator Consortium Pledges Emissions Cuts as Proportion of Production
Although based on “intensity” and not “absolute” emissions, oil giants say it’s a step toward net-zero goals for 2050.
UPDATE: Appeals Court Stay Allows DAPL To Operate Temporarily
Energy Transfer pursued the stay and expedited appeal after its emergency request for a stay was denied by the US District Court for the District of Columbia.
Oil and Gas Companies Begin Turning to Renewables To Power Operations
IHS Markit says the industry’s “striking pace of growth” and a dynamic commercial environment are fueling the movement to zero-carbon sources.
A Double Vision: Service Companies Aim To Save Shale Dollars With Simultaneous Completions
Why stimulate horizontal wells one by one when they can be done two at a time? The largest pressure-pumping company in the business says it might even be possible to complete three wells at once.
IEA Clean Energy Transitions Summit: First Step Toward Bridging Gap Between Ambition and Action?
Technology innovation, job creation, inclusive and equitable recoveries, and sustainable electricity headline discussions at high-level summit.
Production Cuts Not Enough To Offset Plummeting Prices, Oversupply of Natural Gas
For an industry once fueled by the law of supply and demand, the new economic reality has brought new rules.
Dispute Over Mexico’s First Foreign Offshore Discovery Is Drawing to a Close
Pemex and Talos Energy have 120 days to decide how to share a massive offshore field that both companies claim they should operate. Failure to come to terms means the government will decide the matter.
Startups in Oil and Gas—New Ventures, New Horizons
Chevron Technology Ventures President Barbara Burger discusses the adoption and integration of new technologies.
Head of Chevron Technology Ventures on the Realities of Investing Amid a Pandemic
Barbara Burger says the key interest areas for the supermajor’s portfolio of startup investments remains unchanged despite a new industry downturn. However, the environment is tighter and the way in which deals are made has already seen notable change.
Have Oil Sands Producers Found an On-Off Switch for Their Wells?
When oil demand vaporized, oil sands producers cut 300,000 B/D of production from wells using steam injection to produce bitumen. It is a huge test of something they have long been reluctant to do—turn down in-situ production when prices plunge.
Saudi Arabia/Kuwait Neutral Zone Resumes Production
The joint oil field had been offline since 2015, due to an operational dispute.
Total Tapped as Industry’s Top Explorer
Apache, Qatar, and Shell clinch best discovery, best new venturer, and energy transition leader.
US District Court Orders Dakota Access Pipeline Shut and Emptied
The court said it was mindful of the disruption the shutdown will cause but said the seriousness of deficiencies from the US Army Corps of Engineers outweighs the negative effects of shutting down the pipeline.
A Net-Zero Future Full of Opportunities for a New North Sea
Despite the global downturn, the long-term transition to net zero presents a major opportunity to create new multibillion industries based around the North Sea. Cross-sector collaboration and major state/private sector intervention, together with strong leadership, will be key.
Price-Plunge Fallout: Let’s Make a Deal
Nearly everything’s on the table as companies aim to shore up portfolios by curtailing investments and dumping low-priority assets.
AI Meets HMI: Next-Gen Robots Take on the Tough Tasks To Reduce Risks on Rigs
With their gee-whiz—albeit artificial—intelligence, robots may be the industry’s answer to jobs deemed dangerous, dirty, distant, or dull.
Fit-for-purpose tactics likely will be of ever-increasing focus going forward. If it is not adding value, it should not be done. But “fit for purpose” encompasses a wide range of possibilities—leveraging new approaches as well as learning from old approaches and improving current approaches.
Spatiotemporal Clustering-Based Formulation Aids Multiscale Modeling
In the complete paper, a novel hybrid approach is presented in which a physics-based nonlocal modeling framework is coupled with data-driven clustering techniques to provide a fast and accurate multiscale modeling of compartmentalized reservoirs.
Learnings Applied to Reservoir Simulation of Unconventional Plays
In the complete paper, the authors revisit fundamental concepts of reservoir simulation in unconventional reservoirs and summarize several examples that form part of an archive of lessons learned.
Incorporating Constraints Improves Least-Squares Multiwell Deconvolution
In the complete paper, the authors reduce nonuniqueness and ensure physically feasible results in multiwell deconvolution by incorporating constraints and knowledge to methodology already established in the literature.
Future of Nonmetallic Composite Materials in Downhole Applications
The complete paper highlights examples of nonmetallic materials selection and qualification for upstream water-injection and producer and hydrocarbon wells and presents suggestions for future progress.
Glass-Reinforced Epoxy Effective Alternative to Alloys in Gas Wells
The complete paper describes an operator’s experience in confirming glass fiber-reinforced epoxy (GRE) as an effective alternative to high-grade corrosion-resistant alloys (CRA) to extend tubing life in high-velocity gas wells.
High-Density Polyethylene Liner Safeguards Against Corrosion and Wear
The complete paper presents the results of evaluation of laboratory and demonstration trials of HDPE liner to mitigate premature failures and prolong the run life of production tubing.
An opportunity now exists to further develop the way we solve problems by adopting agile work flows. Originating from software development in 2001, agile work flows will be a key part of driving the oil and gas industry to its next level of efficiency.
Integrated Work Flow Optimizes Eagle Ford Field Development
The complete paper presents a large-scale work flow designed to take a vast amount of data into consideration. The work flow can be scaled for projects of any size, depending on the data available.
Tectonically Influenced Regions See Complex Stress States, Casing Failures
In tectonically influenced regions, potential hydrocarbon traps are subject to complex states of stress. This scenario often translates into severe strike/slip (SS) and thrust-fault or reverse-fault (TF/RF) stress states.
Normalized Cumulative Production Curves Estimate Ultimate Recovery
The complete paper discusses the use of cumulative production ratio curves normalized to a given reference volume in time for different unconventional plays in North America to investigate the median trend for each play and the median ultimate recovery per play.
What the industry needs at this stage is a willingness to work together, share best practices, conduct innovative research, and focus on disruptive technologies that lower cost of capture and make our operations more sustainable.
Novel Solutions to Atmospheric Carbon Maintain Advantages of Petroleum
This paper presents novel approaches to carbon abatement using petroleum that have a strong chance to succeed in fulfilling technological and economic goals.
Supercritical CO2 Heat Recovery System Finds Application in Oil and Gas Operations
The complete paper describes an advanced Rankine cycle process-based system that converts waste heat into usable electrical power to improve the efficiency of gas-compression stations on gas-production platforms and pipelines.
New Closed Blender Reduces Footprint, Gasification of CO2 in Waterless Fracturing
Carbon dioxide (CO2) waterless fracturing uses liquid CO2 to replace water as the fracturing fluid in reservoir stimulation. The continuity and reliability of the blender are key factors determining performance of the operation.
Shell Wipes Out Up To $22 Billion From Major Oil and Gas Projects
Two of the biggest assets to suffer from the new valuation are in Australia. Shell’s QGC venture and its floating liquified natural gas facility, Prelude, have been reduced in value by up to $9 billion.
Add Denbury to the List of Possible Bankruptcies
Denbury Resources needs enhanced debt reduction. The company that does enhanced oil recovery using carbon dioxide it produces and transports has skipped a payment to creditors while it seeks a deal that would reduce its debts.
Norway’s Northern Lights CCUS Project Hits a Yellow Light
An independent study pegged the cost of the project at about $2.6 billion, 80% of which Norway’s government planned to fund. The ministry said there is uncertainty about Northern Lights’ benefits and that it could prove to be unprofitable.
Chesapeake Energy Files for Bankruptcy Protection
The distressed shale pioneer will wipe away nearly $7 billion in debt and is likely to make major asset sales as it attempts to restructure itself into a profitable business.
BP To Sell Petrochemicals Business for $5 Billion
The deal includes 15 global sites and over 1,700 staff expected to transfer to INEOS upon completion of the sale. The deal also follows BP’s announcement earlier in the month that it would cut 14% of its workforce.
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06 August 2020
04 August 2020