TOPICS OF INTEREST
PRODUCTION AND WELL OPERATIONS
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.
Saudi Arabia/Kuwait Neutral Zone Resumes Production
The joint oil field had been offline since 2015, due to an operational dispute.
Long-Lasting Shale Slowdown Leads to a Sense of Malaise
The good news is 95% of the oil companies in Texas are expected to survive 2020, which means there is a lot of bad news to endure.
OPEC+ Continues Production Cuts, Leading to Mixed Market Reactions and Forecasts
Although oil prices were down on 8 June, the market is expected to see higher prices in response to the OPEC+ decision to continue production cuts.
What Damage Is Wrought by the Rush to Shut In Wells?
The Permian Basin is now influencing the upstream water market on the way down, while many questions swirl around the implications of unprecedented shut-ins.
Autonomous Valve Controls Excess Water, Gas Production To Increase Oil Recovery
Autonomous Inflow Control Valve technology demonstrates significant benefits within first year.
OTC 2020 Tech Papers Offer a Look Into the Future of Offshore
The Offshore Technology Conference was cancelled for the first time ever due to the COVID-19 pandemic. But the flow of ideas continues. As proof, this curated summary of technical papers highlights unique concepts that might someday reduce the offshore sector’s heavy cost burdens.
ExxonMobil, Pioneer Propose A Methane Monitoring Network For Texas Oil Fields
Tracking down fugitive emissions has traditionally relied on small-scale detection efforts. This new project seeks to buck the trend by covering the Permian Basin with sensors.
Leveraging the Combined Benefits of RTA and PTA During Market-Induced Production Shutdown
The silver lining for those overseeing the unprecedented shut ins of tight-oil wells is the potential to acquire a wealth of reservoir data. But first, petroleum engineers need to monitor these wells and use the right analysis toolbox.
Saudi Arabia, Kuwait, and UAE Aramco Will Cut Close to Additional 1.2 Million B/D from June Oil Output
The latest cuts come less than 2 weeks after OPEC+ began the largest round of coordinated production curtailments ever agreed to.
Interview With George King: Better Practices for Well Shut In and Startup
The industry has very limited experience in shuttering production on a large scale in unconventional reservoirs. Many questions remain on how stimulated, nanodarcy shale reservoirs may respond. George King discusses the paradigm shifts needed in the industry.
Smaller Companies Attempt Life-Saving Measures To Stem Economic Suffering
Oil companies large and small have pulled out the stops to stay on solid ground. Devon, Diamondback, and Parsley post latest cuts in production.
Offshore Enters Uncharted Waters
For the offshore sector, the collapse in oil demand and prices came just as the market was beginning to look up. Now many companies are focused on survival. This article discusses how various market segments, regions, and companies are faring in “the new reality.”
Asphaltenes: A Complex and Challenging Flow Assurance Issue To Measure and Quantify Risk
Researchers use novel methodology to measure the thermo-electric properties of native crude.
The Great Shale Shut-In: Uncharted Territory for Technical Experts
As tight-oil producers move to curtail production, hard-to-answer questions are being raised about how shuttered wells will come back. The issue reveals key uncertainties about the delicate flow paths that define unconventional reservoirs.
Production Lifting Costs Shrinking
The savings result in part from the depreciation of global currencies against the US dollar, as most operating expenses in oil and gas production are realized in local currencies. Brazil leads in savings.
ConocoPhillips to Voluntarily Cut Production, Reduce Cash Uses; Weatherford to Delist from NYSE
Financial Fallout: For two big companies, tougher times call for tougher actions.
Can Regulators Move Fast Enough To Fix a Shattered Market?
Texas Railroad commissioners recognize the battering Texas oil companies, and their workers, are taking, but will continue considering their options until 5 May.
Texas Railroad Commission, Executives Hold Hearing To Explore Production Quotas
Even some free-market advocates are calling for regulators to step in and try to help pull them out of what feels like a chasm by setting production limits.
Subsurface Compression Lifts Liquids, Increases Gas Production in Unconventional Well Trial
A downhole compressor solution based on advanced magnetic technologies completed its first field trials in an unconventional gas well. It resulted in a 62% increase in gas production and significant increase in liquid production compared to using a rod pump previously in the well
Industry Faces Long Road to Recovery
Leaders of Rystad Energy went online recently to talk about the effects of the coronavirus pandemic on the oil and gas industry, and the prognosis isn’t good.
Global Upstream Industry Moves Into Survival Mode
As the fallout deepens from the coronavirus pandemic and the global collapse in oil and gas prices, oil- and gas-producing regions around the world are feeling the pain.
ExxonMobil Shares Blueprint for Stricter Regulations of Methane Emissions
The largest oil and gas major in the US is calling for tighter rules around methane monitoring, wellhead venting, and the replacement of equipment components with “high-leak potential.”
Production monitoring requires heightened degrees of precision and efficiency as operations are streamlined and projects are evaluated continuously. This month’s feature focuses on innovative technologies that have been implemented in environments ranging from the Gulf of Mexico to China.
Report: BP Pulling Out of Iraq Field
The withdrawal comes at a time of increasing tension between the US and Iraq, which makes investment in the country riskier.
SPE Technical Directors’ Outlook: Tearing Down the Walls Among Disciplines
Merging new knowledge and technological capabilities among the disciplines—and beyond—will be crucial to sustaining the industry for the long term.
Massive Gas Field Begins Production Offshore Israel
The largest natural gas field in the rising Eastern Mediterranean region is now flowing after being discovered a decade ago.
Guyana Hits New Milestones
First oil from the 120,000-B/D Liza Destiny FPSO is flowing ahead of schedule.
Shell’s Well Pad of the Future Is Open for Business
The international major is calling its latest multiwell project in the Permian Basin a “beacon of innovation.” The goal is to see if combining digital technologies will lower the operating costs of its shale assets.
Rystad Warns of Gloomy Start to 2020 for Oilfield Service Firms
Reduced investment in US shale will continue to weigh down the global oilfield services market through 2020.
Total to Gain Blocks, Extend Production Licenses Offshore Angola
Total has agreed to acquire interests in two blocks in the offshore Kwanza Basin from Angola’s state-owned Sonangol and has received an extension on its offshore Block 17 production licenses.
Basic Energy Services to Leave Pressure Pumping Business
The company said it will avoid the pumping business's “structurally disadvantaged position” and instead focus on well servicing and water logistics.
Chevron Sanctions First Deepwater Ultra-High-Pressure Development
The Anchor development in the US Gulf of Mexico is the first ultra-high-pressure project requiring 20-ksi operating pressure to reach a final investment decision.
Chevron Sets 2020 Upstream Budget, Writes Down At Least $10 Billion
The US major will keep its overall budget flat for a third straight year, but the expectation of lower oil and gas prices long-term will result in tax impairment charges of $10 billion–$11 billion. More than half of those charges will come from its Appalachia Shale gas assets.
Enverus Forecasts “Significant Slowdown” in US Gas Output Growth in 2020
The data analytics firm projects US dry gas output growth will shrink to 2 Bcf/D next year from 8–9 Bcf/D in 2018 and 2019.
Total Officially Enters Libya’s Waha Concessions
Total will invest $650 million in the development of two main projects, North Gialo and NC 98, resulting in a 180,000-B/D increase in production.
Tullow Oil CEO, Exploration Director Resign Amid Lower Production Outlook
The resignations come as the company makes downward revisions to its production guidance after a disappointing performance from its TEN and Jubilee fields offshore Ghana.
OPEC, non-OPEC Allies To Extend, Increase Production Cuts
The group will shed an additional 500,000 B/D of oil production through March 2020, bringing the total curtailment to 1.7 million B/D.
Analytical Study Examines Production of Multistage Horizontal Wells in the Bakken
Multistage horizontal well designs were first implemented in the Bakken in 2007. Since then, more than 12,000 wells have been completed in either the Middle Bakken or Three Forks zones.
ConocoPhillips Leaning on Conventionals Near-Term, Unconventionals Long-Term
Most of ConocoPhillips’ oil and gas production by the end of the next decade will come from its unconventional operations. But, for the near-term, the Houston independent will rely on conventional assets as it seeks to keep spending in check, decline rates low, and cash flow on the rise.
CNOOC Names CEO, Increases Bohai Oil Production
Xu Keqiang took the reins as CEO of the Chinese national oil company on 19 November. Meanwhile, more oil is flowing from the offshore Caofeidian 11-1/11-6 oilfield project.
Short-Term Headwinds and Fundamental Long-Term Change Will Challenge Oil and Gas Industry in 2020
Macroeconomic and business risks, investor uncertainty, and the energy transition highlight the challenges outlined in the report.
ADNOC To Boost Oil Production From Giant Bab Field
The upgrade project will increase the maturing field’s oil production to 485,000 B/D.
Petrobras Starts Production From Pre-salt Berbigao Field
P-68 is Petrobras’ fourth FPSO to begin operations this year following the startups of P-67 at the Lula field and P-76 and P-77 at the Buzios field.
California Oil Fields Are Not the State’s Biggest Methane Emitters
Methane emissions from California garbage dumps far surpass emissions from oil fields, according to a NASA survey.
Report Forecasts “Major Slowdown” in US Oil Output Growth
Lower oil prices, increased operator focus on capital discipline, and diminishing access to capital are choking off once-soaring US oil production growth.
ExxonMobil, Hess To Start Production Off Guyana by Year’s End
First oil from the 120,000-B/D Liza Destiny floating production, storage, and offloading vessel, which arrived on the block in late August, is targeted for December.
Hess To Tie Back Deepwater US Gulf Oil Discovery
The Esox-1 well encountered 58 m of high-quality oil-bearing Miocene reservoirs and will be tied back to Tubular Bells production facilities.
Eni, EGPC Fast-Track Gulf of Suez Appraisal Well
The Sidri 36 appraisal well confirmed the downdip westward extension of the Sidri 23 discovery announced last July by the Italian major.
EIA: US Gulf Oil Output To Continue Record Pace
New projects coming on stream will boost US gulf oil output to 1.9 million B/D in 2019 and 2 million B/D in 2020, EIA projects.
Oxy Starts Up Solar Facility To Power Permian EOR
The 16-MW solar facility in Ector County, Texas, near Odessa, powers the Goldsmith field through deployment of 174,000 photovoltaic panels.
EIA: US Crude Production Fell for Third Straight Month in July
Output fell below 12 million B/D and was down more than 300,000 B/D from an all-time high in April, according to data from the US Energy Information Administration.
For Subsea Technology, “Necessity is the Mother of Invention”
Subsea advancements in the works include longer tiebacks, an underwater drone that lives on the seafloor, and a robotic manifold capable of actuating dozens of valves. Do these new capabilities, born of necessity, signal a sea change in industrywide technology development?
Testing a System Where Machines Decide How Much to Pay a Trucker, and Send a Check
Ten big names in the oil and gas business created a group to try out ways to use blockchain in the oil business, and test if the record keeping and automatic data collection software can track water shipments more efficiently.
Aramco Plan to Restart Damaged Oil Facilities “Optimistic”
Rystad estimates almost 2 million B/D will remain shut in on average during September and October, with full restoration to pre-attack levels not coming until closer to year end.
Alliances Drive Upstream Digital Deployment
Partnerships with big tech, tech startups, and innovative service companies—and the merging of their data, cloud, and software applications—are proving essential for operators in the scaling phase of digital deployment. Equinor, Microsoft, and Halliburton are among those joining forces.
North Sea Still a Big Part of Total’s Future
Recent exploration success in the North Sea has motivated Total to invest some $10 billion in the basin over the next 5 years.
Colombia’s New Ambitions Include Caribbean and Shale Development, But Are They Achievable?
Colombia is walking a thin line between becoming another fading petroleum province and Latin America’s next big success story. Its aces in the hole: unleashing its nascent offshore and unconventional sectors.
Dallas Fed: US Shale Boom Accounted for 10% of US GDP Growth
Researchers from the Federal Reserve Bank of Dallas quantified the economic impact of the US shale revolution for the first half of this decade.
Third Oil Spill Reported Off Newfoundland and Labrador
Production from the Hibernia platform was shut down again on 17 August after its second oil spill in a month, while Husky Energy began to ramp up output from the White Rose field following the largest-ever spill off Canada’s easternmost province.
Murphy Oil Greenlights US Gulf Floating Production Facility
Anchored by the Khaleesi-Mormont and Samurai fields, the King’s Quay FPS will receive and process up to 80,000 B/D of crude oil.
Rystad Says Permian Well Productivity is Just Fine
Despite reports to the contrary, Permian well productivity remains healthy, with average new production per well in the basin matching all-time highs, Rystad says. And the majors are now a main catalyst.
Study Finds Fort Worth Basin Wastewater Injection Increases Fault-Slip Potential
Researchers mapped 251 faults in the North Texas home of the Barnett Shale, the birthplace of the shale revolution, finding that wastewater injection there “significantly increases the likelihood for faults to slip.”
Shale Producers Piloting Downhole Compression To Solve Liquid Loading
Using maglev technology, a new artificial lift system seeks to boost production output by sucking down reservoir pressure from inside the wellbore and from inside the reservoir.
Petrobras to Sell Shallow-Water Campos, Santos Basin Fields
UK operator Trident Energy is entering Brazil while Australian firm Karoon Energy is expanding its position in the country. Both will try to boost output from already-producing assets.
Engineers Get a Look at Oilfield Advances at URTeC While Grappling With the Pressing Problem of Profitability
The Unconventional Resources Technology Conference is like visiting an oilfield theme park for engineers and geoscientists. This year those traveling to the conference for a glimpse of what is possible in exploration and production will also focus on ways to improve short-term profitability.
Oil Begins Flowing from Eni’s Area 1 Offshore Mexico
Early production from Area 1 is the first output from an international operator in Mexico since energy reforms were implemented earlier this decade.
Built on Several New Tools, Marathon’s Digital Oilfield is Maturing
Marathon Oil says its shale fields are producing more oil and gas with less hands-on work from company personnel thanks to a growing arsenal of digital technologies and workflows.
North America E&P Capital Efficiency Likely to Stall in 2019-2020
Cost inflation and volatile commodity prices pose threats to sustained financial improvements.
ExxonMobil Proceeds with Long-Term Vaca Muerta Shale Oil Development
Up to 55,000 BOE/D of output is expected from the ExxonMobil-operated Bajo del Choique-La Invernada block in the Argentine shale play, with a possible second phase producing up to 75,000 BOE/D.
Interwell EOR Pilot Proves Advantages of Polymer Flooding
This paper discusses an enhanced-oil-recovery (EOR) polymer-flood pilot at the Captain field in the UK North Sea during 2011–2013.
Malaysia’s Petronas is Looking Near and Far for Gas and Oil
The state-owned firm is looking within its home country, around Southeast Asia, and to the Americas—including shale—in an effort to maintain its forecast average yearly production of 1.7 million BOE/D over the next 5 years.
Venezuela Oil Output Sinks to Lowest Level Since Early 2003
The recent production freefall could accelerate even further as US sanctions-related deadlines pass, the US Energy Information Administration said.
Digital Transformation at BP is Starting to Add Up to Billions
Analytics, sensors, and robots are changing the way one of the world’s largest oil and gas companies does business. Underpinning all the new technology though is a shift in how BP thinks, and what it means to be a supermajor in the 21st century.
ExxonMobil Moves Forward With Second Guyana Development
Expected to start up in mid-2022, Liza Phase 2 will produce up to 220,000 B/D of oil.
New Operators, Well Designs Drive Record Gas Production in Haynesville
After a long cooling off period, this dry-gas shale play is once again red hot.
Shale CEO on Parent-Child Challenge, Well Declines: We Know
Encana CEO Doug Suttles assures that shale executives are acutely aware of the parent-child well challenge, and he doesn’t think it’s “a big threat” to the sector.
ExxonMobil, Chevron Target Nearly 2 Million BOE/D in Permian Production
The US majors plan to produce around 1 million BOE/D each from the basin, which has become a primary focus of their upstream operations.
This industry is one often considered reactive and overly tradition-bound. These new technologies, however—and, more importantly, the drive of these researchers to harness their capabilities—prove that petroleum engineers remain at the forefront of innovation and discovery.
Noble Energy Touts Output Gains, Potential From “Row Development” Concept
Noble’s first row of wells in its massive Mustang project is helping increase the operator’s DJ Basin output, and similar results are soon expected in the Delaware Basin.
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23 July 2020
04 August 2020