Rig count and fracturing-crew activity are the pulse of the energy industry; as energy commodity prices increase, so do these vital numbers.
During the past year, crude oil prices jumped 36% from $49.59/bbl (WTI) at the beginning of August 2017 to $67.68/bbl on 1 August 2018, with a maximum price of approximately $74/bbl in late June 2018.
The price increase experienced during the past year has renewed investments in many plays. However, a long-term project, such as offshore deepwater field developments, would require a minimum sustainable oil price to be profitable. We, therefore, have not seen massive investment in developing challenging sand-prone fields that require large capital investment up front to complete wells with expensive and sophisticated sand-management and -control techniques. Perhaps the demand has not yet justified sustainable prices, leading some oil companies to rebalance capital allocation by increasing dividend payouts or stock repurchasing programs while waiting for the market forces to establish a price benchmark.
In this respect, in the energy industry, no news very often is the best news; any geopolitical instability and tensions could cause oil prices to fluctuate abruptly and make operators feel uneasy about investing in capital-intensive projects.
On the technology side, regardless of the oil price, demand persists for cost-saving and value-adding innovations and emerging technologies to bridge gaps in the existing technology portfolio for sand management and control.
To stay in the know of the latest projects trending in the energy industry, read the featured papers and recommended additional reading and attend the upcoming 2018 SPE Annual Technical Conference and Exhibition 24–27 September in Dallas and the Asian Pacific Oil and Gas Conference 23–25 October in Brisbane, Australia.
This Month's Technical Papers
Hybrid Sand-Consolidation Fluid Offers Versatility in Treatment of Shallow Reservoirs
Ceramic Sand Screens Applied in Maturing Oil Field Offshore Malaysia
Simulation of Sand Production Caused by Water-Hammer Events
Recommended Additional Reading
SPE 187237 Self-Assembling Nanoparticles: A Unique Method for Downhole Sand Consolidation by Rajendra Kalgaonkar, Saudi Aramco, et al.
SPE 189491 Openhole Mechanical Packer With Eccentric Shunt-Tube Gravel-Pack Assembly Reduces CAPEX and Accelerates Production in Laombo Deepwater Development, Angola by J. Hernandez, Total, et al.
SPE 189557 A Large-Scale Sand-Retention Test Facility for Evaluation and Selection of Optimal Standalone Sand Screen for Injection Wells in Thermal Operations by M. Mahmoudi, RGL Reservoir Management, et al.
| Xiuli Wang, SPE, is a consultant with more than 20 years of experience in the oil and gas industry. She was previously a senior adviser with Baker Hughes, a GE company, and vice president and chief technology officer for XGas. Wang also has 8 years of operational experience with BP, specializing in oil and natural-gas production, completion, and sand control. She holds a PhD degree in chemical engineering from the University of Houston, a BS degree from Dalian University of Technology, and an MS degree from Tsinghua University. Wang was the associate editor in chief of the Journal of Natural Gas Science and Engineering during 2008–11 and currently serves on the JPT Editorial Committee. In 2007, she was named the United States Asian American Engineer of the Year by the Chinese Institute of Engineers—USA. Wang was an SPE Distinguished Lecturer in 2013–14 and was named an SPE Distinguished Member in 2014. |
