TOPICS OF INTEREST
New Merger to Create Third-Largest US Pressure Pumper
As the hydraulic fracturing market faces pressure to lower costs, Keane Group and C&J Energy Services announce they will combine their businesses.
IEA, OPEC Cut 2019 Oil Demand Growth Forecast
Trade tensions and economic sentiment take a toll.
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.
Global Energy Demand in 2018 Grew at the Fastest Pace This Decade
Natural gas accounted for almost 45% of global demand growth last year.
Comstock Resources to Buy Covey Park, Triple Haynesville-Bossier Position
The combination will create one of the Haynesville Shale’s top gas producers, tripling Comstock’s Haynesville-Bossier acreage.
More Tweaks Than Transformation in Rewrite of Well Control Rules
The new well control rule is evidence that memories of the Macondo blowout remain a powerful force for caution. Despite the rhetoric on both sides of this hot-button issue suggesting big changes, the final changes were incremental.
Dorado Discovery Off Australia Is Bigger Than Expected
After drilling the Dorado-2 appraisal well, operator Santos Energy now expects a big increase in gas resources from predrill estimates, adding to one of the largest oil resources ever found on Australia’s North West Shelf.
Thirty Firms Awarded Blocks in UK’s 31st Offshore Licensing Round
The round marked a continuation of a recent trend on the UKCS in which lesser-known firms and newcomers have gained stature, replacing more-familiar, bigger operators that have pared down their North Sea positions.
Exploring the Innovative Evolution of Hydraulic Fracturing
The evolution of hydraulic fracturing is a long and circuitous one that deserves examination. Engineering and completions leaders from Liberty Oilfield Services did just that, authoring a paper that encapsulates the high points in development of the groundbreaking completions practice.
Eni Tallies Fifth Oil Discovery in Angola Deepwater Exploration Campaign
The Agidigbo find follows the Kalimba, Afoxé, Agogo, and Ndungu discoveries. The five discoveries combined hold an estimated 1.8 billion bbl of light oil in place.
Murphy Oil to Buy Deepwater US Gulf Assets for up to $1.625 Billion
The El Dorado, Arkansas-based Murphy has quickly found a home for some of the cash it will receive from the sale of its Malaysia business. The company has been rapidly expanding its US gulf footprint while simplifying its portfolio and targeting more oil.
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.
The coiled-tubing (CT) industry, like other well-intervention segments, has applied lean philosophies to some aspects of its management, operations, processes, and equipment. When it comes to CT application to specific in-well operations, no two wells are the same.
Factory-Model Approach Improves Performance of Coiled-Tubing Drillout
This paper presents a factory-model approach to improving CT drillout performance that has been used successfully for more than 3 years and has become standard practice.
In-Line Quench-and-Temper Technology Applied to CT Improves Safety and Reliability
This paper discusses the advantages of the in-line quench-and-temper (Q&T) process, which enhances overall CT life and reliability by producing tubing with more-uniform microstructure throughout its entire length, increased material strength, and improved bend-fatigue performance.
Study Explores Mechanisms of Surface Damage on Coiled Tubing
In this paper, the authors study the stress status of CT string held by gripper blocks, the axial force distribution of gripper blocks, and the longitudinal resonance of CT strings in vertical wells.
Real-Time Formation-Face-Pressure Analysis Improves Acid-Fracturing Operations
This paper contains a detailed discussion of methods and a software tool that has been developed to generate information that predicts formation-face pressures in real time with the help of live bottomhole-pressure data.
Chemical-Diversion Agents Can Aid Acid Fracturing in Openhole Horizontal Wells
This paper presents a newly designed triaxial fracturing system and describes a series of experiments that verified the validity of tool-free chemical diversion for multistage fracturing of openhole horizontal wells.
Digital Transformation Increases Value in an Omani Thermal EOR Asset
A thermal asset in Oman is characterized by a large-scale steam-drive/cyclic-steam-soak (CSS) development project, underpinned by extensive data gathering.
Surface Drilling Data Can Help Optimize Fracture Treatment in Real Time
This paper presents a unique work flow that addresses in real time the challenges of perforation and fracture-treatment design while accounting for the lithologic and stress variability along the wellbore and its surroundings.
How Southeast Asian Upstream Operators Are Digitalizing
Malaysia’s Petronas, Shell Malaysia, and Thailand’s PTTEP are now in the midst of full-scale digital adoption. The companies are beginning to see results, but none is counting on a “big bang” in development of the technology soon.
China’s Shale Dream Rests Atop Chaotic Geology
As the country pushes for higher output from its emerging unconventional sector, nature is pushing back. To get better results, operators there are increasing their reliance on technology.
One of my best moments is to have made the technical case for polymer flooding and to see the fruits of this several decades later. As is so often the case in our industry, my contribution stands alongside those of many others in the intervening years who have all made the EOR journey possible.
Largest WAG Pilot in Giant Al-Shaheen Field Reveals Optimization Methods
This paper discusses the operation of the largest offshore high-pressure water-alternating-gas (WAG) injection pilot using hydrocarbon (HC) gas, with a gas-injection capacity of approximately 100 MMscf/D, in the giant Al-Shaheen field offshore Qatar.
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.
The fourth industrial revolution is taking the oil and gas business by storm. Many companies have increased resources for big-data analytics and machine learning. Though no one sees physical oilfield services as in decline, development in these areas may take a back seat to artificial intelligence.
As Exciting as Watching Scale Grow: Real-Time Observations Generate New Control Ideas
The chemical reactions creating buildups of scale that can clog a well can be replicated in a chemical lab, but researchers are finding many more variables on the surfaces of pipes that need to be considered.
As gas development focuses more on tight and ultratight formations, the challenges to produce economically become diverse and more intense. One main challenge faced while fracturing a well is a high fracture gradient.
Phosphonate-Based Inhibitor Reduces Scaling Potential of Seawater
In this study, a laboratory analysis was conducted to study the effect of a phosphonate-based scale inhibitor on a mixture of hypersaline Arabian Gulf seawater and formation water under high-temperature/high-pressure conditions.
Computational Model Predicts Breakdown Pressures in Unconventional Plays
This paper presents a newly developed model to predict the breakdown pressures in cased and perforated wells.
Seismic and Seismochemical Stimulation Increases Well Injectivity and Productivity
This paper discusses the potential of seismic and seismochemical well simulation in particular within the scope of this recent technology.
Service Companies Remain Optimistic Despite Tough Start in 2019
The three largest service companies are optimistic about the rest of 2019.
Chevron Sells UK North Sea Assets
There is a new, big independent in the UK North Sea, Delek Group. Its UK North Sea arm, Ithaca, bought most of Chevron’s holdings in the sector in a $2 billion deal.
Canadian Oil Business Gets More Canadian as Devon Exits
Devon Energy and its debt gets smaller, as Canadian Natural Resources adds to its huge, long-term bet on Canadian heavy and ultra-heavy crude.
Shell Begins Production from Massive Gulf of Mexico Platform
Appomattox begins production below cost and ahead of schedule in another optimistic sign of the offshore sector’s rebound.
Brazil Focuses on Cost Control in Deep Water
Petrobras says it can produce oil for a lower break-even price than onshore shale plays, including the Permian Basin. Brazil’s offshore sector has cut the cost of deepwater production but comparisons based on break-even prices are slippery.
Shell Partners with Startup to Get a Better Taste of the Reservoir
Wireline formation tests are a critical piece of the exploration and appraisal process, yet they come with a degree of uncertainty. The supermajor has tapped a new software developer to see if it can clear things up.
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.
Industry Dives into UK’s New Oil and Gas Data Hub
Some 3,000 people and counting intrigued by UK oil and gas data have signed up for access to the country’s new National Data Repository. What motivated the OGA to make the data available to the public, and what can the public do with the data?
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.
Weatherford Plans Chapter 11 Restructuring
Weatherford said it will file for bankruptcy after reaching a deal with its biggest lenders to halve its debt load and provide financing during and after the process.
Transocean Reveals Its Drilling-Changing Ideas
The biggest drilling company appears interested in becoming the most innovative. It is testing inventions ranging from a blowout preventer that is not hydraulically powered to power systems designed like a hybrid car.
Idle Drilling Rigs Actually Require a Lot of Work
When a rig is stacked, its owner has two choices: spend millions to keep it in good shape, or let it rust out. These two companies describe what it is like to maintain their assets for the day that a contract comes.
Chevron No Longer Pursuing Anadarko
Oxy has won the fight for Anadarko. Citing capital discipline as the reason, Chevron has elected not to make another bid for the independent.
UK Continental Shelf: Two Big Discoveries and More to Come
Leaders from UK’s Oil and Gas Authority, Total, CNOOC, and Equinor discuss exploration successes, misses, and expectations for the offshore UK.
OTC Event Selects 10 Startups Worth Watching
The results are in. Here are this year’s “Most Promising” startups as decided by upstream investors and oil company innovation teams
Digitalization is Changing Offshore Operations
Adoption of digital technologies will continue to improve the offshore sector, including improved well efficiency, real-time directional drilling, lower maintenance costs, and safer operations.
Anadarko Accepts Oxy's Revised Takeover Offer
Anadarko Petroleum now plans to exit its agreement with Chevron after deeming Occidental Petroleum's revised takeover bid "superior."
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.
Operator Executives Share Haynesville Development Strategies
Indigo Natural Resources, Aethon Energy, and Rockcliff Energy are among the most active operators in the revived Haynesville Shale of North Louisiana and East Texas. And most people outside of the region likely have never heard of them.
Analytics Solution Helps Identify Rod-Pump Failure at the Wellhead
This paper presents an analytics solution for identifying rod-pump failure capable of automated dynacard recognition at the wellhead that uses an ensemble of ML models.
Machine Learning Optimizes Duvernay Shale-Well Performance
This paper discusses how machine learning by use of multiple linear regression and a neural network was used to optimize completions and well designs in the Duvernay shale.
Well-Abandonment Solutions Use Bismuth and Thermite Effectively and Safely
This paper demonstrates a new way to create gas-tight seals during well abandonment, overcoming the limitations of traditional methods and reducing the operator’s liability and potential environmental impact after decommissioning has been completed.
Cementing and Zonal Isolation
I am encouraged that we, as an industy, continue to refine and tweak our practices to solve zonal-isolation and cementing challenges in every well environment in which we work. As cementing techniques are improved, so, too, are the cement-evaluation methods and work flows.
Activating Shale Can Create Well Barriers
This paper discusses shale creep and other shale-deformation mechanisms and how an understanding of these can be used to activate shale that has not contacted the casing yet to form a well barrier.
Real-Time Analytics Improves Process Safety in a Drilling-Contractor Operations Center
This paper explains how an ultradeepwater drilling contractor is applying real-time analytics and machine learning to leverage its real-time operations center to improve process safety and performance.
Data Is Not Scarce, but Oil Companies Hoard It as if It Were
A growing number of oil industry leaders are saying that data sharing across the industry is needed, but change is coming slowly.
Multilateral and Complex-Trajectory Wells
The oil industry is currently undergoing a technological transformation that will add value, improve processes, and reduce cost. Future drilling engineers will have knowledge of robotics, automation, and organizational efficiency, which is highly appealing for recruitment.
Integrated Approach Overcomes Depleted-Reservoir Challenges
This paper describes challenges faced in a company’s first deepwater asset in Malaysia and the methods used to overcome these issues in the planning stage.
Ultrasonic Imaging Technology Evaluates a Lateral-Entry Module
This paper presents the data collected by an ultrasound downhole scanner, demonstrating a novel method for diagnosing multilateral wells.
U-Shaped Re-Entry Drilling Revitalizes Depleted Reservoirs Offshore Congo
Against the background of a low-oil-price environment, a redevelopment project was launched to give a second life to a shallow, depleted, mature offshore Congo oil field with viscous oil (22 °API) in a cost‑effective manner.
Shale EOR Delivers, So Why Won’t the Sector Go Big?
There is every reason to believe that enhanced oil recovery through huff-and-puff injections in US tight-oil plays could be a technical success across large numbers of wells. However, widespread economic success remains uncertain.
Looking for Fracturing Sand That Is Cheap and Local
The very first fracturing job used sand scooped from a nearby river. After decades of buying sand based on tight size standards, unconventional operators are increasingly going back to a broad range of sizes, similar to that river sand.
As you read the examples in this section, you will see that a change is already under way in that the methods that are being used are increasingly not oil-and-gas-specific but instead follow patterns that are being used in other industries.
Augmented Artificial Intelligence Improves Data Analytics in Heavy-Oil Reservoirs
The authors of this paper propose a novel work flow for the problem of building intelligent data analytics in heavy-oil fields.
Offshore: Making a Comeback After the Downturn
Could 2019 be a bumper year for offshore energy development?
Deepwater capital expenditure has nosedived since the oil-price crash of 2014 and has not quite recovered because of the high level of break-even prices required, but some oil companies maintained their interest in the sector and went ahead with big-ticket projects anyway.
Isolation Barrier Valves Installed Successfully in Deepwater Gulf of Guinea
A major operator manages multiple deepwater projects in the Gulf of Guinea. This paper describes one of these, a recent 44-well project.
40 Years in the Campos Basin Lead to Wealth of Lessons Learned
This paper presents a retrospective of the most-significant technologies developed and deployed in the Campos Basin for more than 80 production systems in more than 30 oil- and gas-field developments.
Spain’s Repsol, LLOG to Partner on Deepwater US Gulf Developments
The pact, which builds on the firms’ current partnership on the Buckskin project, covers four Keathley Canyon blocks including the Leon and Moccasin discoveries.
Schlumberger to Sell its Middle East Drilling Business to Saudi Arabia’s TAQA
The deal will bolster Arabian Drilling Company’s fleet to 67 rigs across the Middle East and North Africa.
Shale Oil Focus Shifts to Cash Flow, Squeezing Growth and Small Players
In the shale oil business, cash flow is a life or death issue. For smaller players, money from investors and lenders is getting harder to find.
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.
Oxy Makes $38-Billion Bid for Anadarko in Hopes of Beating Out Chevron
Keen on Anadarko for a while, Occidental Petroleum is ready to do battle with Chevron for the big independent.
Blacktip: Shell’s New Discovery in the Gulf of Mexico
The explorer has so far encountered 400 ft of reservoir pay zone in an area where it has three other producing fields.
Chinese-Owned Operator Claims Longest Permian Lateral
Houston-based Surge Energy drilled the Medusa Unit C 28-09 3AH well in the Midland Basin to a TMD of 24,592 ft, with a total horizontal displacement of 17,935 ft, or 3.4 miles.
ConocoPhillips to Exit UK E&P Business in $2.7-Billion Sale
With the purchase, the growing, privately-held Chrysaor Holdings will expand its UK North Sea production to 185,000 BOE/D.
ExxonMobil’s Guyana Offshore Discovery Count Rises to 13
Yellowtail-1 is the fifth discovery in the Turbot area, where ExxonMobil plans another Stabroek Block development hub.
Majors, IOCs Win Blocks in Argentine Offshore Bid Round
Thirteen companies placed bids on 18 blocks in the Austral, North Argentina, and Malvinas West basins as part of Argentina’s first open bid round for offshore acreage in more than 20 years.
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