Oil and Gas Production and Exploration, Part II

American Translators Association 52th Annual Conference Boston, October 26, 2011
Presenter: Steven Marzuola
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Progression

Water depths
Shallow

Up to 1000 / 1500 ft deep Christmas tree on platform (dry tree)

Deepwater

Christmas tree on bottom (subsea, wet tree)

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Offshore building blocks

Shallowest water
Louisiana

Lake Maracaibo, Venezuela

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Jackup drilling rigs

Mobile, flexible Usually up to 400 ft water depth

Can handle surface trees on permanent platform, OR subsea trees

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Conventional platform

Depths up to 1000 feet Wells drilled directionally Surface-type wellheads Drilling equipment often permanent

Source: California Department of Conservation - www.conservation.ca.gov

Deepwater drilling rigs

Semi Submersible

More stable in rough weather Slow transit speed

Drillship

Faster deployment Less stable Increased Capacities

Liquids, bulk material, personnel

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Marine Riser

Riser tensioner system

System used to keep a positive pulling force on the marine riser independent of the movements of the rig. If there was no tensioner system in place every time that the rig moved downward, the riser would buckle

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Subsea BOP stack

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Anchor handling vessels

Moored (anchors)

Reduced operating cost (fuel) No Drive-Off (loss of control) No Drift-Off

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Dynamic Positioning (DP)

Thrusters

Any water depth Faster to mobilize/demobilize, avoid bad weather No anchors to handle, drag on bottom Expensive to operate (fuel)

Not shown: Built-in type

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Remotely Operated Vehicles (ROVs)

Unmanned submarine

Controlled from rig with tether Multiple functions

Video Operate wellheads or BOP Stack

Classed by horsepower, number of actuators

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Production facilities

TLP - Tension Leg Platform Semisubmersible, moored to seafloor Production through subsea manifolds More stable in rough weather Reduced transit speed Onboard drilling and production facilities
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Production facilities (cont.)

SPARS

Large submerged cylinder, moored to seafloor Stable Platform Surface BOP Stacks / trees Weather has less impact on operations Usually Reduced Capacities

Liquids Bulk Material Personnel

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Pipelay vessels

S-Lay
Shallower water

J-Lay
Deeper water
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Subsea pipeline - complications

Concrete coating:

Reel-lay

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Rig costs

Up to $550,000 per day Total operating costs Up to $1,000,000 per day = $41,600 per hour $694 per minute $11.57 per second

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Subsalt

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Particular problems with salt

Salt blurs seismic images Required advances in seismic technology Drilling problems Plastic salt movement Abnormal pressures Lost circulation Shale problems

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Norske Shell Troll A

Installed in 1996 Water depth 303 meters Overall height 472 meters Weighs 656,000 tons. Produces gas from 40 wells Towed 200 km to the Norwegian Sea. Tallest structure ever moved by man.
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FPSO - Floating Production Storage, Offtake

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ChevronTexaco Genesis

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Independence Trail Hub

Located 200 miles SE of New Orleans. Anchored in 7920 ft of water Cost $385 million. Service life of 20 years Receives flow from subsea wells up to 30 miles away, connected via 176 miles of flowlines Peak production 850 million cubic feet of gas per day Sent to shore via 24 pipeline (cost $280 million) Current price of $4.30 / MCF, provides cash flow of $3.5 million per day
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Chevron Typhoon

Installed May 2001 Capsized during Hurricane Rita, drifted 70 miles away September 2004
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Project lifecycle
Consequence of size, expense, complexity Phases Conceptual Pre-FEED FEED (Front End Engineering Design) Detailed Engineering Construction, Installation, Commissioning
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Factors that influence projects

Long lead times 1-2 years for major equipment, longer for vessels and platforms Plans change due to
Market prices Interest rates Other opportunities, access via pipelines built for nearby fields Mergers
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Peak Oil, or Hubberts Peak

M. King Hubbert - Shell geophysicist Theory: production tends to follow bell-shaped curve. Can be predicted in advance. Production increases early due to discoveries and new infrastructure. Later declines due to depletion.
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Peak Oil, or Hubberts Peak (cont)

In 1956, Hubbert predicted peak of USA production late 1960s - early 1970s. Controversial, but proven right by 1976. Actual peak was in 1970. Is it applicable to world production?
Rapidly growing demand in China, India New technologies, increased depletion rates What is the effect of higher real prices?

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Historical oil production

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Steven Marzuola
281-381-9337 www.techlanguage.com

Houston Interpreters and Translators Association

American Translators Association

2011 Steven Marzuola 32