Professional Documents
Culture Documents
COM
FEBRUARY 2012
Subsea
Technology
Hydraulic
Fracturing
Drill Bit
Technology
Unconventional
Resource
Development
Reservoir
Characterization
Regional Report:
Middle East
Our Vision
Sri
Logistical Services
Well Packages
Materials Management
Project Services
Technical Support
Valve Automation
Products
OCTG
Line Pipe
Fittings & Flanges
Valves
Actuators
Instrumentation
Oilfield Supp lies
Production Equipment
Polyethylene Products
Corporate Headquarters
2 Houston Center
909 Fannin,Suite 3100
Houston,TX 77010-1011
Phone: (87712947574
mrcpvf. com
F E B R UA R Y 2 0 1 2
VO L U M E 8 5
A H A R T E N E R GY P U B L I CAT I O N
UNCONVENTIONAL
RESOURCE DEVELOPMENT
40
44
48
ISSUE 2
w w w. E P m a g . c o m
COVER STORY
32
RESERVOIR CHARACTERIZATION
54
60
62
66
70
72
76
HYDRAULIC FRACTURING
78
80
84
SUBSEA TECHNOLOGY
92
96
106
IndustryPULSE:
WorldVIEW:
US midstream segment
in for major overhaul
88
Unconventional: Bakken
Williston basin oil boom
gains momentum
AS I SEE IT
Yesterdays frontier, todays front line
MANAGEMENT REPORT
Recruiting gets a new look
14
18
22
EXPLORATION TECHNOLOGY
Taking a microscopic view of the shales
27
WELL CONSTRUCTION
Despite lag, GoM activity continues to grow
29
PRODUCTION OPTIMIZATION
EOR project has the right mix
31
TECH WATCH
Warning system mitigates earthquake damage
100
TECH TRENDS
104
INTERNATIONAL HIGHLIGHTS
108
114-115
LAST WORD
Attention to increased risk is critical for safe decommissioning
116
The March issue of E&P showcases the annual drilling advances and
records feature, celebrating companies whose technology continues to push the limits. The issue also
features intelligent operations, 4-D seismic, drilling and completion fluids, and artificial lift, and regional
reports focus on Canadian shales and West Africa. Additionally, the magazine has a special feature on
deepwater advances. As always, while youre waiting for the next copy of E&P, remember to visit
ABOUT THE COVER A polar-class icebreaker clears a path for seismic data
acquisition offshore Northeast Greenland using ION GeoVentures under-ice seismic
data acquisition technology. Greenland is an area of growing interest for the oil and
gas industry. (Image courtesy of ION; cover design by Laura J. Williams)
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston,
Texas 77057. Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149;
2 years (24 issues), US $279. Single copies are US $18 (prepayment required). Advertising rates furnished upon request. POSTMASTER:
Send address changes to E&P, PO Box 5020, Brentwood, TN 37024. Address all non-subscriber correspondence to E&P, 1616 S. Voss
Road, Suite 1000, Houston, Texas 77057; Telephone: 713-260-6442. All subscriber inquiries should be addressed to E&P, 1616
S. Voss Road, Suite 1000, Houston, TX 77057; Telephone: 713-260-6442 Fax: 713-840-1449; custserv@hartenergy.com. Copyright
Hart Energy Publishing, LP, 2012. Hart Energy Publishing, LP reserves all rights to editorial matter in this magazine. No article may be
reproduced or transmitted in whole or in parts by any means without written permission of the publisher, excepting that permission to
photocopy is granted to users registered with Copyright Clearance Center/0164-8322/91 $3/$2. Indexed by Applied Science, Technology
Index and Engineering Index Inc. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to
$25,000 for violations.
Printed on
recycled paper
PoriScope
PREMIUM CONTENT
Subscribe @ EPmag.com/explorationhighlights
The big news in Canada is tight gas, particularly in northeast British Columbia, where, thanks
to the application of technology, it is one of
the hottest plays in the vast, resource-rich
country.
WEBINARS
Unconventionals
in Michigan: The
A-1 Carbonate
and Collingwood
and Utica Shales
Unlocking The
Utica: The Next
Big Northeast
Shale Play?
The Mississippi
Lime: The
Midcontinents
Newest
Horizontal
Oil Play
READ
TH
LATES E
T
EPmag
.
com
INDUS
TRY
NEWS
Bring boundaries
into focus
Pradera Resources increased production
by orders of magnitude using the PeriScope `
service to place 100% of a 3,000-ft horizontal
lateral in an undulating oil reservoir in
western Canada,
maximize production
eliminate sidetracks,
Pcsi-icr yea r wells in the best pace
n less tiIr_
www.slb.com/PeriScope
Schiumberger
All Aboard
4
1
tl_
La ndmark
Software
& Services
"A
px?
:
i
'
EP
As I
JUDY MURRAY
SEE IT
Editor
jmurray@hartenergy.com
EPmag.com
JUDY MURRAY
jmurray@hartenergy.com
Editor
Senior Editor
RHONDA DUEY
rduey@hartenergy.com
Senior Editor
TAYVIS DUNNAHOE
tdunnahoe@hartenergy.com
International Editor
MARK THOMAS
mthomas@hartenergy.com
NANCY AGIN
nagin@hartenergy.com
Associate Editor
ALEXA SANDERS
LAURA J. WILLIAMS
JO LYNNE POOL
Senior Editor/Manager,
Special Projects
JO ANN DAVY
RICHARD MASON
ERIC ROTH
RUSSELL LAAS
Group Publisher
Yesterdays frontier,
todays front line
here are not many in the industry today who cant remember when 300 m (1,000
ft) water depth was considered very deep for oil and gas operations. As scientists
and engineers developed more sophisticated drilling and production units, built
more robust mooring and riser systems, designed better hulls, and conceptualized
equipment that would take operations deeper, they changed the perception of the
deepwater frontier.
Today, oil is being produced safely from Shells Perdido field in the Gulf of Mexico at a depth of 2,450 m (8,000 ft), and R&D efforts are aimed at making production in 3,000 m (10,000 ft) a reality.
As E&P has gone into deeper water, it also has expanded into more challenging
geographical areas, including those with arctic conditions. This harsh operating
environment introduces the need to contend with floating ice, flow assurance and
logistical challenges, and personnel safety issues.
Subsea production, which has been possible for decades, is now reaching greater
depths further from shore in more harsh environments than ever before. The first
subsea separation project, Hydros Troll pilot, was installed in 1999. Subsea compression technology is the next step.
Enormous strides have been made onshore as well. A decade ago, unconventional
developments were a side note. Today, North American shale production is climbing
rapidly, and interest in shale oil and gas is spreading around the globe, with China
and India investing in North American fields while they lay the groundwork for
domestic development. Discoveries in Poland and, most recently, the UK have
placed a number of countries in Europe on the shale map as well.
Meanwhile, Australia, which has increased its LNG output from giant offshore
finds, has ramped up investment in CBM as well. Queensland CBM makes up about
80% of the domestic natural gas market, and plans are now in place to add significant production over the next 10 years.
Technology also has opened up more heavy oil reservoirs for production, including the Hebron field in the Jeanne dArc Basin offshore Newfoundland, which was
discovered in January of 1981and is now scheduled for first oil in 2017.
It is easy to see that yesterdays frontiers are todays front lines. As technologies are
developed and implemented, the E&P horizon will continue to change, and the editors at E&P will continue to spotlight the trends that are changing our industry.
As I conclude this months column, I am embarking for
new frontiers myself. As I leave E&P magazine and take the
next step in my career, I will remember fondly the time
I spent as editor. And I will continue to be a devoted
reader of what I believe is the best magazine of its kind
in the business.
5
industry
PULSE
industry
PULSE
posed to announce a decision on gas sales from the second phase of Shah Deniz. But there is still no front runner among the competing commercialization options,
and the Total discovery at Absheron could complicate
and delay a decision.
world
VIEW
US midstream segment in
for major overhaul
Regardless of President Barack Obamas decision on the Keystone XL pipeline, the country
is overdue for a pipeline overhaul.
There is plenty of room for Obama to say, I dont like Keystone as it is proposed without endangering the whole Canadian/US trade relationship. The
US is Canadas largest trade partner and largest importer of Canadian crude.
And on our side, we wouldnt somehow cancel the other 2 million barrels a
day we receive from Canada just because we have some issues with this
pipeline.
Could there be yet another rabbit in the White Houses hat? We were surprised before.
I dont think so. Obviously, the dynamics are fluid, but the core issue here is
that Keystone is a project based on 20-year commitments. It isnt based on capitalizing on a WTI/Brent spread. Its not a project thats going away. Even if
WTI trades at a premium to Brent in the future, for whatever reason, this is a
project that reflects long-term demand by Canadian producers to access the
Gulf Coast, which is the most liquid crude market in North America. The
most dramatic event were going to see is the one weve already seen when
Obama announced he would delay a decision.
I was surprised, too. But, I dont think he has the stomach to reject it. He
knows it will get built at some point, possibly with a different route; you cant
turn off the spigot from our largest single crude importer, which is Canada.
Speaking of the WTI/Brent spread, it is evaporating.
Yes. From our perspective, the high level of WTI/Brent spreads we saw during
the summer wasnt justified by any fundamental factors. There is a speculative
component. The reduction in the spread now (to about US $8 in late December) has surprised some people, but when you see it blow out like it did in
this or any of the commodity markets there is always going to be a speculative component.
Also in play has been the fact that refineries manage their crude inventories
to minimize the amount they hold in storage at the end of a year.
The Seaway deal came about shortly after Obamas November announcement.
How did this work?
The Seaway reversal is the only game in town as an existing asset positioned to
get a large amount of onshore oil production to the Gulf Coast. If Wrangler
were canceled and Keystone were delayed, Seaways value would suddenly be
much higher. Seaway is about a 400,000-barrel-per-day pipeline from the Gulf
Coast to Cushing. Keystone and Wrangler were about 1.5 million barrels a day
together. If these were built, Seaways value would be considerably impaired.
From Conocos perspective, if it held onto Seaway to the point where the 1.5
million capacity is approved and being constructed, it would then be difficult
to sell Seaway for an attractive price.
The Keystone delay made Seaway more valuable. Its already in the ground
and requires few approvals to reverse the direction. Thats what we saw:
Conoco finalized the sale shortly after the Keystone announcement.
It also had two highly incentivized bidders Enterprise that wanted to reverse it,
and Enbridge that wanted in on an oil-to-the-Gulf-Coast pipeline?
Yes. Wrangler was a project by Enbridge and Enterprise. If Enterprise bought
the second 50% of Seaway and canceled Wrangler, then Enbridge would basically be out of the game, sitting on the sidelines.
EPmag.com | Febr uar y 2012
"Teaming with
Halliburton on the
use of this 'green '
suite of technologies
advancements for
hydraulic fracturing."
Johr Jensen, Sevier Vice President,
Operations , El Paso Exploration & Production
Solving challenges `
HALLIBURTON
world
VIEW
Investor)
10
II - Project Management,
, ??i
"'
?
1
?1
!
???
?y
Design, Conversions,
`?i
'Engineering
-:
' err `
t ??
S?t
t 3
+?
' `
r
41 fa iv
10
nd
.;?av
A FAMILY OF COMPANIES
www.kbr.com
world
VIEW
Dopeless Technology
Exper ienced. Efficient. Environmental
s
Itifu
leaving them n
coven in many drilling applications worldwide over the past nine years.
_plied to our connections in the controlled,industrial environment of our mill
field, faster and more reliable connection make-up, and less reservoir formation damage. Dopeless product
are manufactured on dedicated production lines with advanced quality controls and supported by a global
network of field services,repair shops and technical support teams.
www.tenaris .
com/tenarishydri
TenarisHydrul
management
REPORT
LL- ? L 0 U lz
"? ,LL t?
??l= 'Llzli`t"1
'
r
? ?
l
??
Sl
[zl?L? ????L?;_{??'
?G_ '?!
Elf
J
l
ML?
L
The University of Oklahoma's Mewbourne College of Earth & Energy ha
made remarkable progress in the five years since our beginning, and ou
many achievements would not have been possible without the more tha
$100 m Ilion in gifts from alumni and friends in the industry.
owments of over $14 million for student scholarships
ANN INOT
MEWBOURNE
COLLEGE OF EARTH&ENERGY
THE UNIV ERSITY OF OKLAHOMA
Illlir._
www.ou.edu/mcee
management
REPORT
Nil
i
L
I
Vacuum Trailers
Frac Tanks
Vacuum Boxe
Storage Tank
Fuel Tank
Skid Tank
Mud Tank
Production Tank
. ..
ment line is severe-duty engineered to stand up to harsh working conditions and get
e with minimal maintenance.Plus we constantly develop our product line based
rfeedback. So you know your Dragon equipment will be high quality,designed
nd cost you less to own over its lifetime.And that 's just the equipment.
gives you extra support for your business, such as 24/7 parts and service
nationwide dealer network.Bottom line - going with Dragon equipment
vestment in your operation.Because it works for you now, and keeps working
into the future.
.r
N
T nkA
ri
RACON
?A
a/
"
i. ..
n 1963.
.fi
digital
OIL FIELD
18
OFI O Nf IE I
IE LLJfrJIg
RO,NTIE
ROUP,In
Committed to t
We
Slickline/Wireline Hydro-testing
s
r
.,Y
'M
11
&.Ak V-3I
digital
OIL FIELD
Flexibility
WCDCs offer greater flexibility at lower cost. These facilities are designed to accommodate increased storage
demands and long-term business growth. Oil and gas
companies typically upgrade hardware every two years
and maintain rigorous maintenance schedules. WCDCs
20
allow companies to stay up to date and at peak performance by providing dedicated, knowledgeable staff who
understand the HPC environment and are able to swap
out and rapidly deploy equipment with zero downtime.
WCDCs provide customers with instant space to meet
changing data storage needs. Collecting petabytes of
data a year, these customers are able to scale up as their
business needs grow instead of scrambling to find more
space or maintaining extra space until they need it.
1
?
S
S
J
J
/
???JJ J .
?l'J
Simple,Reliable,
AlLrieI!
??
J fJ1j
I
N
a?a
?M
Be One Of Them!
35 Blackjack Road
.
_ ? ' _
u '
www.arielcorp.com
?
digital
OIL FIELD
Visualization in 3-D
Minimum acceptable separation distance calculations are displayed in 3-D. Tubes represent aggregation of positional uncertainty with ACR along offset wells with respect to the planned well
in yellow. Areas safe to drill are shown as visible space: red areas
indicate where ACR fails, while green areas show where ACR
passes. Dumbbell symbols and connecting lines show the direction along ACR calculation between offset and planned wells.
(Images courtesy of Baker Hughes)
22
The use of data visualization for decision-making, particularly in real time, has become critical in todays challenging drilling environments. Many drilling applications can
benefit from real-time 3-D visualization, from well planning and directional drilling using 3-D clearance calculations to drilling optimization, reservoir navigation, and
real-time formation evaluation using 3-D wellbore placement inside a geologic model.
Baker Hughes recently introduced its WellLink 3-D visualization service to optimize wellbore placement by providing real-time 3-D visualization of wellbore-related data.
The integrated decision support and visualization platform enables operators to make accurate and timely
decisions within a true collaborative environment by
aggregating data into a single visualization environment.
Our customers can now see a real-time synopsis of
their drilling environment, including earth models and
tool diameters, Scott Schmidt, Baker Hughes president
Febr uar y 2012 | EPmag.com
digital
OIL FIELD
23
W
d
N U M B E R OF Z O N E S
PACKERS
SLEEVES
R
0
4LPI
L-!N
I
in action
,onple:ioi
(6
Weatherford
weatherford.com
digital
Weatherford'
OIL FIELD
Tactical Technology
TM
in action:
coded based on the ratio between maximum applicable bending to the BHA and the
actual moment value. The blue symbol represents the direction vector.
16.
tt.
`
Drilling dynamics
The visualization of the bottomhole assembly (BHA) within its geologic context can provide insight that often is difficult to detect through direct measurements alone. Drilling dysfunctions that are not addressed can lead to tool
failures and unnecessary trips, all adding up to potentially avoidable NPT.
Dynamic parameters like bending moment and the relative orientation of
the BHA with respect to the wellbore also can facilitate predicting the BHAs
direction before actually taking the next survey point.
Turning wellbore-related data into real-time imagery for enhanced well
planning, reservoir navigation, and drilling optimization is now part of Baker
Hughes digital oilfield offering through the WellLink 3-D visualization service,
which provides a single integrated 3-D visualization and decision support solution that leverages the industry standard protocol, WITSML. The ability to
connect directly to other WITSML data sources allows operators to visualize
both offline and real-time datasets through a vendor-neutral, shared
display.
in
rp]raWS prc
1eir
ann
'.
J'.
.s
PAO
"
Delivering results
As a result of continuous improvement and
innovation combined with technical and operational
experience , we are providing the market with
supreme surveys and ghost-free data from the
broadest bandwidth available.
With a global position, local presence and a strong
and viable business model , our focus is to explore
and utilize the possibilities of today 's market , to
A Clearer Image
www.pgs.com
P
N
exploration
TECHNOLOGY
ks
27
EVOLUTION'"
EVOLVE IN
UNEXPECTED WAYS
r- 0
N il,
y
}
t
KY
!
s}
'T
.
+
.f
`
iF, 6f
t i.
,
'f
/ I'
Y >_ L
sr
.} '
../ rn
tf
r;.
Y.. .
Mw,}Si
'M
1
y
'
i
;
l.
} 4 ;5.
t'ri
#f
sfV.
^
. y :
v+-
Ilk
3
r
Nrry l+i
''
.
'
w
h
14
I'ir
`
' r
"
-!t
'K
IN M O R E
WWW.NEWPARKDF .COM/EVOLUTION
NEWPARK
DRILLING FLUIDS
..
:
well
CONSTRUCTION
TAYVIS DUNNAHOE
Senior Editor
tdunnahoe@hartenergy.com
Read more commentary at
EPmag.com
Energy Management/Bureau of Safety and Environmental Enforcement (BOEM/BSEE), formerly the
Bureau of Ocean Energy Management, Regulation,
and Enforcement (BOEMRE).
New information shows that the volume of permit
approval has increased in each of the two quarters following the period from January 1, 2011, through April
10, 2011. Annualized 3Q and 4Q volume of permit
approval activity was 41% and 56% of the historical
annual average, respectively. In the 12 months following the lifting of the moratorium, the 51 permits
approved resulted in an annual rate of approval that
was 32% of the historical average (151 permits).
According to Jim Burkhard, Global Oil Group,
IHS CERA, Regulatory congestion matters because
it influences the pace of development and the pace
of job creation, and it can drastically decrease domestic production.
Although permit approval is still somewhat diminished from pre-moratorium levels, drilling activity is
returning to the US GoM. As the process improves,
the region may quickly be back in full swing.
Despite recent stoppages such as the Keystone
XL Pipeline project delay, demand continues
to increase the need for domestic production. With increased safety, more advanced
well planning, and a range of new technologies being applied,
offshore drillers may
soon breathe easy where
the deepwater GoM
is concerned.
29
A....
,iIVLc
,
"
-I
INN
Vrv
Il'y
J ,,i+r
I1
o Illp
' d,N 1 P
"t
E Well
I nt e r v e n t i o n Services
D r i l l i n g Flu id Services
4)
4) C e m e n t i n g
E M u d Lo gg i ng
E
a n d A u x i l i a ry Services
Directional Drilling
4)
Coring
4.
E - m a i l : m a r k e t i n g/ u c n l c . cn ; m a r k e t i n g l .g w d cc a c n p c .c om . c n
] www.cnlc.cn
t T e l : 86 - 1 0- 5 9 285 6 9 1
production
OPTIMIZATION
MARK THOMAS
International Editor
mthomas@hartenergy.com
Read more commentary at
EPmag.com
the average recovery factor from the fields in the
Baram Delta and North Sabah from 36% to 50%.
But the task they face in delivering this project is a
tough one the application of chemical EOR offshore
is uniquely challenged by remote locations, poor
weather, expensive wells, space and weight limitations,
sea water injection source, and limited disposal
options. These impact subsurface efficiency, logistics, injection, production,
and the environment and are the
reasons why chemical EOR has
been limited to relatively few
pilot tests and partial field projects offshore.
This combined project, however, is intended to be a standard bearer for the industry in
the transfer of chemical EOR
offshore to maximize oil production from existing reservoirs.
Total investment over the next 30
years is forecast at US $12 billion.
It also is a clear example of how an
IOC can add transformative technology,
hard-learned know-how, and value to an NOC
so that the latter can unlock the value of its stranded
resources for the benefit of its citizens. At the same
time, it can enable the IOC to gain access to new
hydrocarbon resources, often in areas previously inaccessible to them.
With more than 90% of global oil reserves controlled by the NOCs, this is an example that will need to be repeated
time and again if the industry
is to extract as much oil out of
the ground as possible.
The deal
between Petronas
and Shell to undertake
two EOR projects offshore
Sabah and Sarawak will
eventually unlock hundreds
of millions of barrels of
stranded oil.
31
COVER STORY:
EMERGING PLAYS
32
COVER STORY:
EMERGING PLAYS
Chinese opportunities
Access
In addition to possible supply shortages, gaining access
to shale acreage will be challenging. According to an
article in the Financial Times, joint venture partners are
the most common avenue to access the Chinese market.
Even high-profile multinationals with extensive local
contacts and resources face regulatory hurdles because
the energy sector is considered as a strategically sensitive
industry, the article states. For this reason, the Chinese
government typically requires local Chinese company
participation and/or the use of Chinese content, conditions that it expects will help the country to develop its
own shale gas expertise.
This access difficulty may be easing, however, since the
government also recently announced it considers shale
gas an independent resource from conventional hydrocarbons and will allow foreign companies to participate
in their development. It also will open the door to
smaller Chinese energy companies.
Chinese shale development is likely to happen, but
not at the speed with which it has happened in the Western Hemisphere. n
33
COVER STORY:
EMERGING PLAYS
Namibias
deepwater oil
potential beckons
This deepwater West Africa bright spot could
be on par with the massive hydrocarbon
province that exists offshore Brazil, where
the first presalt discovery was made.
Nancy Agin, Associate Editor
pop
J
0
er'
t
J6
4
I+a r
'
lik
'-, .II
COVER STORY:
EMERGING PLAYS
HRT operates 10 exploration blocks and holds a participating interest in two additional blocks in Namibias
Orange, Walvis, and Namibe basins; these assets cover a
68,800-sq-km (26,564-sq-mile) area offshore.
According to Mello, who worked as a geologist at
Petrobras for 24 years and in Angola for three years,
the Santos, Esprito Santo, and Campos basins comprise
one giant petroleum system, which he collectively
referred to as the Greater Campos during a technical
program at OTC Brasil in October 2011. Recent subsalt
finds in ultra-deep formations in the Santos basin in particular reveal a very thick and rich source rock related
to the petroleum system HRT is currently studying in
Namibias offshore basins. The OTC session South
America and West Africa: Petroleum Systems and Geological Differences or Similarities also included talks
by Joao Amaral (Total) on presalt plays in the conjugate
margins and Webster Mohriak (HRT) on subsalt exploration in Brazil and Angola.
What kind of correlation can we draw between the oil
shows in the Greater Campos and Namibia? Nilo Azam-
buja Filho, HRT chief technical officer, asked conference attendees, then explained that when combining
datasets from Brazil and West Africa, HRT has identified
four definitive oil families in both regions.
The oil found in Namibia has the same characteristics as the oil families found in Santos basin reservoirs,
he said. These consist of the Marine Deltaic Tertiary,
Marine Anoxic Albian-Cenomanian, Lacustrine saline
oil type, and Lacustrine brackish/saline oil type.
According to Azambuja Filho, an extensive rifting system that extends from the southern part of South America to West Africa has evolved into a massive deepwater
carbonate system where thick salt depositions and similar source rocks can be found in counterpart basins
across the South Atlantic realm.
HRT has identified large prospects in three of its offshore blocks. We think there could be more than 5 Bboe
in these unrisked prospects with objectives in the Upper
Cretaceous turbidite sandstones, as well as the syn-rift carbonates and sandstones that are analogous to the Tupi and
Jupiter fields in southern Brazil, Azambuja Filho said.
Ad
N
t
i
so
m
him
....,.
- -
..
.
`J
-'
. te
_ ''1
..
_.
..
. . .
^
'
`
"'
f; - ` I
.
''.
COVER STORY:
EMERGING PLAYS
,
lop
47;
.A I
t
o
l it-r
10
f'
ire
rv -
.
1
ANr
.
k:
tic:. ; ! _
'
_4 j1t :
;j
=!'
COVER STORY:
EMERGING PLAYS
Australia extends
gas development
to CBM
With an estimated 198 Bcm of CBM
resources, Australia is working to move
more reserves into production.
Judy Murray, Editor
So
PowerReach"' service is proven to provide deeper downhole penetration than with coiled
tubing alone, and with greater efficiencies than jointed pi pe alone . Plug mill out and well
intervention operations overall are g reatl y improved and , when coup led with the Halliburton
Pinpoint stimulation , you can accurately place fractures and customize every treatment.
PowerReach service - coming to a shale near you.
hall iburton .com/boots - coots
B O O TS & C OO L S
A HALLIBURTON
SERVICE
COVER STORY:
EMERGING PLAYS
Coal reserves in
million metric tons
US
238,308
556
Russia
157,010
75,000-80,000
Looking ahead
Arctic activity
warming up
Opportunities in the often-frozen northern
seas are growing for explorers looking for
that first mover advantage.
Mark Thomas, International Editor
he E&P industry knows the Arctic is a unique environment. It poses such tough physical and technological challenges that few believed until recently that the
sustained exploration and development of its massive
hydrocarbon resources was possible.
But it is those huge reserves of recoverable oil and gas
(estimated by the US Geological Survey, or USGS, at
around 90 Bbbl of oil, 1,670 Tcf of gas, and 44 Bbbl of
natural gas liquids) that are too tempting to ignore.
Alongside the current handful of pioneering and
38
COVER STORY:
EMERGING PLAYS
39
UNCONVENTIONAL
RESOURCE DEVELOPMENT
40
ri.2
Ie
BAKER
HUGHES
(
S
1 t UGH
N
A, =
il 6L
, 40-stage completion
www.bakerhug hes.com
23 201 2 Bakes Hug hes Ircorpoaated All Rights Re,esued 3.103
MI m in
You
UNCONVENTIONAL
RESOURCE DEVELOPMENT
With such structural complexities increasing the likelihood of the operator losing contact with the shale or
coming across faults that have the potential to divert
hydraulic fracturing or reduce pressures (ultimately
resulting in abandoned wells), the information generated
from GGI and the resultant finite element analysis (FEA)
can be crucial in determining exploration strategies.
It is more important than ever for operators to understand the structural complexity of shale gas fields, the
presence of faults, and which areas of the field are more
or less structurally complex than others ahead of planning 3-D seismic acquisition.
42
Although 3-D seismic is still playing the lead role in mapping out shale gas reservoirs today, if used at an early stage
in the exploration lifecycle, ShaleQube can play an invaluable role in identifying key structural elements such as
faults, identifying more structurally complex zones, providing input into the design and targeting of future 3-D
seismic surveys, and optimizing drilling program and
production strategies.
Febr uar y 2012 | EPmag.com
M
I I
.A
!
s
i
Kjo
10
s ir
I
0
I;
-"No 11Z
iL
llllllllll
r
Amme
,
j
I&J ff -Z - r
www .vam-na.com
+1 713/479-3200 +1 281/821-5510
aM
UNCONVENTIONAL
RESOURCE DEVELOPMENT
44
UNCONVENTIONAL
RESOURCE DEVELOPMENT
highly fractured nature, the deepest Gharandal formation, called the Nukhul zone, has been the largest producer of cold oil in the field. Unfortunately, high fracture
permeability caused water flow into the wellbore in some
areas of the reservoir, resulting in high water cuts. Steam
channeled through these fractures resulted in heat depletion within the reservoir, hampering heavy oil viscosity
reduction.
lmoduSpec
1
Kegyer
Lloyd' s Register and ModuSpec are t ading names of the Lloy d' s Regis te r Group of entities . Servi ces are provided by me rnb ern
of the Lloyd' s Register Group. For further details please see our web site: www. lr.org / entities
45
UNCONVENTIONAL
RESOURCE DEVELOPMENT
46
ANN*
J
i
;
I
a
chnologies
MW M
IN
114
qu -
Valve Solutions
Forum brings together well-known, trusted brands with an extensive range of mission critical products and
services for the subsea, drilling and production sectors. Our experienced people and proven technologies ar e
read to meet an challen e.
F RUM
E N E R G Y T E C H N O L O G I ES
UNCONVENTIONAL
RESOURCE DEVELOPMENT
CHOPS
ar e
Facilities Management
Pressure Testing
Pumping Services
Chemical Cleaning and Pigging
Nitrogen,Air and Compression
Services
Equipment Rental
Coiled Tubing Lift Frames
Pre-Commissioning Services
Asset Management
!
'
,.
_1
Greene s
Energy Group.
UNCONVENTIONAL
RESOURCE DEVELOPMENT
the stress on pumping assembly components. The emulsion is tight enough to lift sand up through production
tubing to the surface and carry it through the flowline,
but loose enough to allow production stream constituents
to separate cleanly after reaching the storage tank.
Principal effects documented at wells being treated with
the dispersant technology include drastically lower operating costs and incremental production gains up to 300%.
Operating costs have been curtailed
through a combination of pump torque
reductions greater than 50%, increased
ZEEC IV
i
well operating speeds greater than
100%, less sand accumulation in production equipment and flowlines, and
less downtime while awaiting service or
maintenance.
In addition, the emulsion can be
resolved easily with a conventional
emulsion breaker before sale, allowing
producers to avoid paying purchasers
crude treating fees. And residual derivative chemicals in sale oil following
treatment have proven to have no discernable effects on separation facilities.
With only a small number of wells
treated commercially, drawing conclusions about the long-term effectiveness
of the new dispersant technologys
potential would be premature. But with
the ease of integrating injection of the
chemistry into an existing production
system and low treatment costs, the
technology is strengthening the competitiveness of CHOPS as a viable recovery option for low-gravity reserves.
Rv
lK
z
.A
Zeeco Headquarters
1V
ANN-
sales@zeeco .com
50
r"
VA
I
y. ,.
r
: SBA
. .
dt
Yr
IM
a
"
" .
I
i
- "-S -PH
'
.:
"
.
,
R
(
1!.
-.
.rr
`
.F
a.. ,fir.
4&491
ti
r l '., \
I,. _ lllr
1
w it
,
h,
WV
c ..
g ,
,,
.`
IjW
/
'3 '
:
+n u
Z1
'
q
'' 'ors
f %r
fr
l
iM./.arv
`.
i
.
,
''
...
.
q
11'
J Q
f. t
7K,
in cased-hole and openhole horizontal solutions with the new RapidFrac" system
solution. By integrating reliable Halliburton sleeves with a wide array of packer
isolation systems, the Rapid Frac solution saves operators considerable completion
time while improving overall reservoir frac efficiencies in openhole situations.
loop"
Solving challenges.
HALLIBURTON
UNCONVENTIONAL
RESOURCE DEVELOPMENT
Jason
UI S COVe P
RockMo d
MIIVII
mn1111mm I
l lln!I
u11111
If p1HIIhrNll11j11
I
J
III,Reservoir Interval
r'
111W" 11Ii
I
IiNum uv ,..
,,
'NINIIIY Yi
1 'n9 19111
dllb-
Ii HiIIINllll
Ili
illllll NI
11111
11
111''
dlll
IlIh u1 91 1HI1111
11 I
iblll
l
II111I '
u111N
lll
INI1
9
111
III
w11NNNMMII1111NNMI1HllIIIMMwII IIIIHIIIII
seismic data.
As is often the case,a new well based on the results of this study
was the best well ever drilled in this basin.RockMod results are
also excellent input to static models for reservoir simulation.
P -0
fo
qro-ioroorom
FUGRO
JASON
VOM, of
52
D r y
SHALE PLAYS
BAKKEN
EAGLEFORO
HAYNESVILLE
HORN RIVER
MARCELLUS
MONTNEY
PICENACE
UINTA
UTICA
W00DFORD
b-
"
..
74
N
Identify hazards and sweet spots , reducing development risk and costs
Tailored solutions , fro m survey evaluation and design to rock property analysis , provide the most
detailed reservoir models to optimize resource exploitation
Seamless integration of best-in-class services fro m the leading global provider of geophysical
solutions
t CGGVERITAS
cggveritas .com/UR
RESERVOIR
CHARACTERIZATION
The challenges
54
RMS 2012
TM
..
ter
_-
inversion and seismic attribute generation, helping you squeeze every last drop of value out
of your seismic data and resulting in fast and efficient well planning.
With RMS 2012,you can build simple or complex models with improved accuracy and
efficiency and update these models rapidly with no compromises or simplifications.
Don't change your geology to fit your software ! Use RMS 2012,realistically represent
oxar
Z
www.roxarsoftware.com
E M E R S O N. C O N S I D E R
EMERSON,
Process Management
IT
S O L V E D" .
RESERVOIR
CHARACTERIZATION
Get more
with more
from OPT
If
Call us at 713.787.6622 or log onto www.optpt.com today to find out what we can deliver
RESERVOIR
CHARACTERIZATION
/
. 1
TAKING GEOPHYSICAL
EXPLORATION TO
NEW HEIGHTS
airborne oil & gas and mining exp loration. Our exciting
This map view shows the predicted monthly gas production in 207
Ultimate characterization
7
MR
1
9
1
AM
"M
INTERNATIONAL
visit www.mcpharinternationaL.com
or e-mail us at sales@mcpharinternational.com
58
Global applies this concept in its multiclient datasets, Peebles said. We take the approach that we dont really know
whats going to be useful in any particular development
area, he said. We use a statistical approach, and we analyze seismic attributes, look at geological indicators, integrate microseismic, and look at engineering datasets and
determine which ones are most relevant to well performance and productivity in a particular development.
Global has the largest modern full-azimuth multiclient
library in unconventional plays, including more than
10,400 sq km (4,000 sq miles) in the Eagle Ford, and has
done a tremendous amount of study in that play. Peebles
said that while his company is studying and modeling the
entire 6 million acres of the Eagle Ford, We believe that
each operators development benefits from a customized,
local analysis.
Leveille added that ultimate characterization will come
when people stop using conventional reservoir characterization techniques in unconventional plays. I think that is the
wrong way to look at it, he said. These are totally different
rocks and behave differently seismically.
People will need to find better ways to predict where
the sweet spots are. Its a challenge for geophysics. But I
think its a healthy challenge.
Febr uar y 2012 | EPmag.com
,:
.
.
.
;
0010101010 00
00
22,
Pei
-0I
Dee*
Disciplined thinking
When you join SPE, you can immediately begin to focus in on your
areas of interest and expertise throug h our six technical discip lines.
Our membership combines the brightest minds in the E&P industry,
giving you access to new people ,new places,and new ideas from all
over the world.
SPE has something for everyone working in the upstream oil
and gas industry,no matter where on the globe you may be.
E
SP5
L
i'
www.spe.org
RESERVOIR
CHARACTERIZATION
Subsurface models
patented workflow organizes and assembles those contributions to create a predictive model that ties all of the
data together and tests then constantly against blind wells
to validate their predictive capabilities.
Recent projects in North American resource plays have
allowed the company to perform high-resolution inversions on prestack seismic data for physical rock properties. In the process, factors such as TOC, frac closure
stress, rock brittleness, natural fracture density, and porosity have been analyzed for their weighted predictive capabilities for reservoir properties and production. This
approach bridges the gap between geophysics and reservoir engineering, bringing new value to seismic data in
shale plays. Finally, engineers have quantitative predictive
models they can use to plan well locations and frac jobs.
Geologists provide vital input from core, outcrop, and
well log data to create a fracture indicator log that ties
seismic information to the physical properties of the
earth. Pressure and completion data from reservoir engineers bring knowledge of historical reservoir production
into the model. The geological model rigorously applies
the geophysical attributes to empirically test the validity of
results against well data throughout the process. Well logs
Subsurface understanding is a key component for production optimization in resource plays because total
organic content (TOC), rock brittleness, porosity, closure stress, natural fractures, and pore pressure drive
production. By maximizing the insight gained from
each available data type, subsurface models identify
and predict reservoir rock, meeting the necessary criteria for highly successful wells. Success is determined
by knowledge of rock physics properties and correlation to production information plus local knowledge
of the field. Wells planned and fraced using these drill
here models minimize the risk of poor performance
due to poor reservoir quality and significantly increase
average IP rates and EURs.
The workflow
The SIGMA3 workflow uses all available data and input
from geophysicists, geologists, and reservoir engineers to
accurately represent the subsurface at different scales. A
60
RESERVOIR
CHARACTERIZATION
61
DRILL BIT
TECHNOLOGY
or the past five years, drilling engineers at Verkhnechonskneftegaz (VCNG), together with service company advisors, have made steady improvement in drilling
performance by studying drilling records and making
systematic improvements to the bottomhole assembly
(BHA). Initially, tungsten carbide insert (TCI) drill bits
were run on positive displacement motors (PDMs). The
procedure evolved to the use of rotary steerable systems
(RSSs) and PDC bits.
Challenged to improve drilling performance in its
Eastern Siberian oil field, VCNG took a systematic
approach. Instead of focusing on a single factor, such as
the bit, the mud, the BHA, or the actual drilling techniques, each facet of the drilling operation was studied,
from both its individual contribution to its collective
performance aspects.
Cutting-edge technology
The specific challenge to overcome was the efficient construction of an 8-in. directional interval penetrating
alternating carbonate and evaporite sequences. Drillers
found it challenging to maintain good directional control
while achieving a high rate of penetration (ROP).
For help in drilling hard rocks, engineers specified a
drilling system with the SHARC high abrasion resistance
PDC drill bit and the PowerDrive vortex-powered RSS.
The RSS gets its main drilling power from the rigs top
drive but is speed-boosted by an inline
PDM located in the BHA.
To justify the economics of the RSS,
the drilling team knew they would
need to shave considerable time off the
drilling curve. They hoped to do this
through a combination of improved
ROP and improved drill bit longevity.
The goal was to drill the entire 8-in.
directional interval in a single bit run. The ONYX II cutters (left) consistently outlast standard ONYX cutters in comparative
tests on offset wells. (Images courtesy of Schlumberger)
62
nodal
TTR
N
e0
ARKANSAS
NEW MEXICO
EDDY
T E X. A S
k.
iii
"
4
LOVING
CULBERSON
REEVES
F A I R F I E L D N O D A L . COM
DRILL BIT
TECHNOLOGY
Evolutionary
improvements experienced
exceeding 2,000 m (6,560 ft) illustrates the clear advantage of the new ONYX II cutters.
The PDC bits used in these wells are specifically
designed to minimize vibration. Vibration robs energy
from the bits ability to cut rock and can cause damage
to downhole drilling instrumentation. The bits also are
designed to minimize cutter wear and damage. This
maximizes cutter life and extends shoe-to-shoe performance while retaining sharp edges for higher ROP.
IL
404 T 0 :1
14
12 Series pressure
switches are dual
seal approved and
TX200 Series
pressure
transmitters provide
monitoring through
analog or digital
HART 711 output.
precise pressure
transmitter , with
local indication and
switching.
64
Protectors.Our durable,
Learn more at
www.ueonline.com/oil_gas.htm
UNITED ELECTRIC
UE CONTROLS
www. checkersindustrial.com
800-438-9336
a
a!
i.M
W
#i3
-!, rim1I
TBC-Brinadd is a global provider of non-damaging drill-in, comp letion and workover and fracturing fluid system additives. Our
product line has evolved through years of providing innovative solutions that have satisfied a variety of downhole applications. Our
ISO 9001:2000 certification,partnered with our R&D/Technical Services laboratory and manufacturing facility, enables us to be the
premier service company for the service industry.
AO-System '"
Ultra Carb
Glysol-Dril
Ultra-PF'"
Thixsal-Ultra '"
WORKOVER / COMPLETION SYSTEMS
Bridgesal-Ultra "
OSS Pill
Bridgecarb-Ultra '"
PBS Plug'"
Hysaf"
FRACTURING SYSTEMS
Inhibicide Biocides
Fracsal Non-emulsifiers
TBC-BRINADD
4800 San Felipe,Houston,Texas 77056
877.2727
F:713.877.2604
wwwihc-hrinadd_er .
DRILL BIT
TECHNOLOGY
he Hughes Christensen Talon 3D high-efficiency vector-accurate PDC bit is an optimized one-piece steel
frame designed to shorten drilling days while supplying
high ROP and directional control to drill curve and lateral sections efficiently.
The Talon 3Ds performance is compared to a competitor offset. The ROP for this section is currently unsurpassed in the Samotlorskoe
field in Western Siberia, Russia. (Images courtesy of Baker Hughes Inc.)
66
Dragon delivers.
il
'
II
t
,? l q
'
`
t`
'
,p 4 4'.
4 'y
,
.
r.-
1
. r
w . ,
. t
1.
Centrifugal,Vacuum
& Mud Pumps
Pum Accessories
gon pumps work and work a nd work . so your operation can too.
. tate-of he-art U.S. manufacturing facility turns out a wide range of pumps,from fra
gal pumps,to vacuum and mud pumps. It all begins with our highly experienced
p experts. They employ advanced engineering and keep close control over
cturing to ensure Dragon pumps are designed and built to be high-quality,long-ter
e rs. Every product off our line is fully tested.Then,when a pump is put to work in
peration,we continue to stand behind it - and you.You get extra support,including
11 ent recommendations, warranty assistance,24/7 access to parts, and service teams
can help you onsite or in our four service centers. Whatever you need to fight downtim
p up your business,
with you. Make it happen.
` NI .
Make it happen
DRILL BIT
TECHNOLOGY
A
N
A
M
04
Waterless
Western Siberia, Russia. Drilling in a low-HSI environment through interbedded sands and shales, the operator
was challenged with an inability to achieve the necessary
high buildup rate in one run.
The bit was used on a positive displacement motor
BHA and effectively drilled the section with a top ROP
of 66.3 m/hr (217.5 ft/hr). Its increased junk slot area
improved cleaning, reduced bit balling, and completed
the well profile, achieving a buildup rate of 2.5/10 m
(2.5/32.8 ft).
Hughes Christensens patented polished cutters provided superior cutting efficiency and minimized cutter
and bit balling. TRACBlock technology was deployed on
the Western Siberia project. This technology uses a proprietary depth-of-cut-control method to manage
unwanted torque spikes when drilling interbedded and
soft formations. The section was drilled in one run with a
section drilling time of 19.9 hours. The ROP for this section is currently unsurpassed in Samotlorskoe field.
The Talon 3D bit profile design and cutting structures
provide mechanical efficiency, durability, and directional
control. The bit also displays enhanced durability and reliability because of its hardfacing, which reduces bit erosion in
a variety of environments. In addition, the short bit-to-bend
dimension improves steerability on conventional directional
equipment and increases buildup rate aggressiveness.
GGSFRAC ,
ENERGY SERVICES INC.
The Hughes Christensen PDC bit is built for longer life using
superior hardfacing material and application-specific polished
cutters for increased durability to improve performance in challenging environments. Pictured is the Talon 3D 6-in. QD3065.
68
CK)UM
PERFORMANC
Breaking
Field Records
www.nov.com /hellos
. e4
r
1ZN
I ns C
iu y .
. .1oli mite l
8011 1 1111
DRILL BIT
TECHNOLOGY
DRILL BIT
TECHNOLOGY
cutter bit will drill farther faster and reduce the cost per
potential of the steel to a strong negative. This repels
foot drilled.
the negative ions in the drilling fluid so a lubricant
barrier of water forms on the surface
of the bit, preventing the bit from
balling.
The cutters, like the rest of the bit,
are designed to extend bit life without sacrificing ROP. Traditionally,
cutters provide abrasion and impact
resistance, but thermal degradation
can damage cutters through the differing expansion coefficient of the
materials in the cutter. The ability of
a cutter to manage the frictional heat
generated during the drilling process
allows it to stay sharper longer and
wear at a slower rate.
Each bit is designed specifically for
the application. The combination of
these optimized features means the
Five standard nozzles are compared to seven micro nozzles.
I&I
Bobtail Tanks
Winch Trucks
Vacuum Trailers
Lowboy Trailers
Lubrication Trucks
J&J is
located
in the heart of
~
.
TRUCK BODIES
&TRAILERS`
Gall f o r a quot e
today.
800.598.8552
sales@jjbodlc
f:n
Marcellus
Shale region.
71
DRILL BIT
TECHNOLOGY
PROVEN
SOLUTIO NS
Cudd Energy Services offers a broad range of specialized oilfield services and equipment
to businesses engaged in the exploration and production of oil and natural gas worldwide.
Our team of experienced professionals will design a solution, provide the engineering, and
mobilize the resources to safely execute the planned objective in both onshore and offshore
environments.
44
-ka
who
ENERGY SERVICES
M
,
r
'
11
DRILL BIT
TECHNOLOGY
Infrastructure
Management
74
-.-IL
aTI -t,6
AL
- L-J-
COMPOSITE
FRAC & B R I D G E PLU G S
iV $CU A.
DIAMOND?
I.
CASING ANCHOR
,AK
cq
IUV E
, YOUR]
WE
O
..v
Completion Tools
Se U i n el o ot s
l,
a iuuuC k
Powcr Charges
Igniters
Chemical Cutters
DRILL BIT
TECHNOLOGY
76
j Stil l can
18 Stages?
22 if you want
Multiple clusters in a
20
r' "'
NOD
stage?
St
1 '
airj
,rJ
si
s
y-
;,.
-,
_.
i,
-'-
. - ' '
'
www. i-tec.no
Awesome! I'll get in
touch...
%A
-4
jo .16 .
l1,6110
t
i
ti
pFN
www.i-tec.no
I=TEC
WELL SOLUTIONS
i-TEC AS
Houston TX 77041
4033 Stavanger
Norway
USA
T: +1 (713) 983-8689
F: +1 (713) 983-8739
E: info@i-tec.no
Fabrikkveien 28
T: +47 90 86 68 88
F: +47 94 77 27 93
E: info@i-tec.no
HYDRAULIC
FRACTURING
Recommendations
Some of the DOEs major recommendations include:
Improving casing and cementing procedures to isolate the
gas-producing zone from overlaying formations and potable
aquifers. Loss of well integrity is the result of poor well
completion or poor production-pressure management;
Controlling the entire lifecycle of the water used from acquisition to disposal. All water flows should be tracked and
reported quantitatively throughout the process;
Limiting water use by controlling vertical fracture growth.
Periodic direct measurement of earth stresses and the
microseismic monitoring of water and additive needs
eliminates rogue methane migration and saves production money;
Using multiwell drilling pads to monitor processes and
minimize truck traffic and surplus road construction. The
use of mats, catchments, groundwater monitors, and
78
HYDRAULIC
FRACTURING
The subcommittee report details recommendations to quell public concerns about hydraulic fracturing.
Rec.#
1.
Recommendation
Improve public information about shale
gas operations
Improve communication among federal
2.
Measures should be taken to reduce emis- gas production quickly, and explicitly include methane, a greenhouse gas,
3.
and controls from existing shale gas production sources. Additionally, some
states have taken action in this area, and others could do so as well. See discussion below.
4.
5.
6.
OSTP has not committed to leading an interagency effort, but the Administration is taking steps to collect additional data, including through the EPA air
rulemaking.
encourage planning. Some states have taken action in this area, and others
could do so as well.
11.
No new studies launched; funding required from fed agencies or from states.
to water reservoirs.
14.
15.
DOI has announced its intent to propose requirement. Industry appears ready
to agree to mandatory stricter disclosure. See discussion below.
EPA is developing permitting guidance under the UIC program. The Subcommittee reiterates its recommendation that diesel fuel should be eliminated in
hydraulic fracturing fluids.
20.
R&D needs
OMB/OSTP must define proper limits for unconventional gas R&D and budget
levels for DOE, EPA, and USGS. See discussion below.
HYDRAULIC
FRACTURING
Range of options
The fracturing completion system was developed to
enable zone-specific completion designs based on an
extensive portfolio of zonal isolation and fracturing
sleeve technologies and a modular design methodology.
The resulting ability to open, isolate, and fracture specific zones based on length, geologic conditions, configuration, and other characteristics has proven particularly
beneficial in North American shale plays. Zone-specific,
life-of-well isolation methods help overcome zonal isola80
ROIIVATER"
ENERGY SOLUTIONS
FLUIDS MANAGEMENT
ABENCHMARK
STIMULATION CHEMICALS
FRACTURING ADDITIVES
GUAR TECHNOLOGIES
Red Oak
WATER TRANSFER
wimst-il
FLOWBACK
Rockwater offers a wide range of fluids management services and chemical
WELL TESTING
technologies to meet the water ,stimulation, fracturing, fluids ,and production needs of
our customers throughout every major North American shale play. Our companies have
CEMENTING CHEMICALS
been serving the oilfield for over 35 years. We meet your logistics needs with a fleet of 550
PRODUCTION CHEMICALS
trucks ,3 million gallons of storage capacity, 5 sand transloading facilities , and over 380 miles of
pipes and pumps. We provide a wide selection of polymer slurries and specialty chemicals for your
specific oilfield app lications.
INCREASING PRODUCTION,
Our mission is to maximize the oil and gas production of our customers while reducing their costs
I r
y
.r
..
.' " ^
r.
sy
p
41
OW
ALL d '"
IU
.
I
M
,
.rockwaterenergy.com
02012 Rockwater Energy Solutions, Inc.
EAGLE FORD
BAKKEN
PERMIAN
I MARCELLUS
UTICA
I ARK-LA-TEX
BARNETT
I GRANITE WASH
I ROCKIES
I CANADA
HYDRAULIC
FRACTURING
Fracturing sleeves
In the North Dakota well, a hydraulic toe sleeve was used
to treat the first zone. The liner was run into the wellbore
with the landing collar, allowing circulation during run-in.
The first ball was dropped and circulated, falling on the
landing collar to close the liner system. Pressure was then
applied against the landing collar to shift it closed. Pressuring up further to 2,500 psi opened the hydraulic toe
sleeve to actuate it and enable fracturing the first stage.
Single-shot ball-drop fracturing sleeves were used to
control access to the frac zones and divert frac treatments
in the first 20 zones of the well. The single-shot sleeves
use a continuous method of isolating below the sleeve,
opening a port, fracturing, then moving to the next zone.
Sleeves are opened from the bottom up with successively
larger balls. After a ball opens a particular sleeve, it lands
TEX-AZ
LA
Contact:
John A Linton III 281-389-5558 texazfsi@gmail.com
above the previous sleeve and seals off the previous zone.
After being opened, each sleeve remains open permanently. At the end of the frac job, the balls are produced
out of the hole, and the ball seats can be milled out of the
tubing if the client prefers.
A volume of 290 bbl of treatment was pumped into the
zone. After the first stage was complete, another ball was
dropped and landed in the first single-shot sleeve. Pressure of 2,000 psi was applied to shift the first sleeve to isolate and treat the first zone. The ID of the first ball seat
was 1.9 in. Balls and seats became progressively larger as
the completion system moved uphole.
For this well, the company used sleeves that use aluminum balls rather than the standard composite balls.
The aluminum balls enable more sleeves to be installed
in the completion by reducing the seat size increments
required to shift the sleeves. The perception is that composite balls are easier to mill than aluminum balls. However, in a similar Bakken well in which 28 zones were
isolated in a single trip, the aluminum balls were proven
to have mill-out times comparable to those with compos-
rn
RockPil
ENERGY SERVICES
Provider of quality,
competent field operations management
and engineering services from
drilling to pipeline.
12603 SW Freeway, Suite 530,
Stafford, Texas 77477
281-980-1530 office 281-980-1533 fax
www.texazfieldsvcs.com
82
701-203-2878
WWW.ROCKP 1LEENERGY.COM
CURT DACAR
CHIEF EXECUTIVE OFFICER
CDACAROROCKPILEENERGY.COM
PHONE: 605-645-8558
Choosing
the hybrid
While fracturing
sleeves are considered the
most economic means of completing multizone fractured wells,
their application is limited by the progressive ball seats that
must be used to add additional zones to a completion.
To ensure the largest possible wellbore to frac through
in the lower zones, many operators use frac sleeves at the
toe and switch to the plug-and-perf methodology above
the toe in a hybrid completion.
By selecting the hybrid completion methodology for its
North Dakota Bakken well, the operator was able to maximize contact with the reservoir and
There is more
increase initial production rates
to the story
READ MORE ONLINE
over the average completion while
EPmag.com
also saving days of rig time.
proppant technologies.
.mesa--
Mc,
r tiva Spsrlalry chemicals loc., Olfie d TecMdogy Group, rbuslon . TX USA + 1 28 1 646 2ELT
momentive.com/oilfield
I:,T .:1, .
fracline.com
MOMENTI
E"
83
HYDRAULIC
FRACTURING
you working.
-X(
1
`
'
1OOOF
..
10"'i"
.
`
AMP,
-"-
i1 .
DRAGON
Sl7
Make it ha
en
,yr
0 Copyright 2012 Modern Group Inc. All rig hts reserved.
HYDRAULIC
FRACTURING
OflAO
071' - .
*00
86
As the LPG frac jobs have increased in size, GasFrac has added
larger proppant blenders and more powerful frac pumps.
reuse the propane, he said. There are operators in certain areas that have these facilities, and over time, as our
process becomes more of an accepted industry practice,
those facilities will grow.
We also are looking at the next generation of LPG
fluids and how we can enhance our current process.
R&D will play a big part in our growth.
Zeringue added that the companys biggest challenge
is finding the right people and partnerships for success.
He expects to double the fleet size in 2012, which will
require more employees. Weve invested heavily in
infrastructure and should have ample proprietary
turnkey spreads by the end of 1Q 2012. We are also
looking at forming partnerships with companies that
can facilitate and complement our process.
Safety features
There has been some understandable industry and reg-
SURFACE S Y S T E M S
t
' -r
RAISING
P E R F O R M A N C E . T O G E T H E R TM
www.c-a-m.com /fracfacts
CAM ERON
UNCONVENTIONAL:
BAKKEN
Early Mississippian-Late Devonian in age, the BakkenThree Forks petroleum system in the Williston basin was
discovered in the 1950s and has since evolved into a
world-class hydrocarbon resource play. The US Geological Survey has estimated North Dakota and Montana
could hold 5 Bbbl to 10 Bbbl of technically recoverable
oil in the Bakken-Three Forks complex alone.
Encountered at depths of approximately 2,590 m to
3,200 m (8,500 ft to 10,500 ft), the Bakken comprises
TOP 12 WELLS
Flow
Operator
Well #
Location
Section, Survey
Date
7,088 Boepd
(4,815 Bo, 13.16
Mmcfpd)
21-4H Tarpon-Federal
McKenzie , ND
4-152n-97w
Nov. 2011
7,033 Boepd
(3,385 Bo, 2.19
Mmcfpd)
Roosevelt, MT
12-28n-59e
Aug. 2011
5,330 Boepd
(4,661 Bo, 4.01
Mmcfpd)
Brigham
Exploration Co.
Mountrail, ND
20-155n-92w
Mar. 2011
5,200 Boepd*
Newfield
Exploration Co.
152-96-2H
Wisness-Federal
McKenzie, ND
4-152n-96w
July 2011
5,133 Boepd
(4,335 Bo, 4.79
Mmcfpd)
Brigham
Exploration Co.
Mountrail, ND
29-155n-92w
Mar. 2010
5,061 Boepd
(4,438 Bo, 3.73
Mmcfpd)
Brigham
Exploration Co.
Mountrail, ND
26-155n-92w
Oct. 2010
5,035 Boepd**
Brigham
Exploration Co.
Mountrail, ND
19-155n-92w
May 2010
4,761 Boepd***
11-27H Maki
Mountrail, ND
27-154n-91w
Oct. 2009
4,675 Boepd**
Brigham
Exploration Co.
Mountrail, ND
30-155n-92w
Jan. 2011
4,570 Boepd***
9-153n-91w
Oct. 2008
4,431 Boepd***
12-10H Fladeland
Mountrail, ND
10-154n-92w
July 2010
4,169 Boepd**
Brigham
Exploration Co.
McKenzie, ND
23-152n-101w
Jan. 2010
*Source: Newfield Exploration Co.: 24-hour average. **Brigham Exploration Co. *** Source: Whiting Oil & Gas Corp.
Data Source: IHS Inc.; UGCenter.com, November 2011. Conversion: 1 bbl of oil equivalent (boe) = 6,000 cf of gas
88
UNCONVENTIONAL:
BAKKEN
SURFACE SYSTEMS
91 ?
0;40
RAISING
P E R F O R M A N C E . T O G E T H E R TM
CA MERON
UNCONVENTIONAL:
BAKKEN
fJ
Y!JJ
fJJ rJJJI-:j! /)
J r iiiJJIJ
1111
Tulsa, OK
April 14-18
www.TheGasGun.com
90
877,557.1370
E . r v
UNCONVENTIONAL:
BAKKEN
SURFACE SYSTEMS
75
L
I1
1
LJ
RAISING
P E R F O R M A N C E . T O G E T H E R T IM
www.c- a-m.com/fracfacts
CAMERON
SUBSEA
TECHNOLOGY
92
FMC Technologies
uI.
never bee
---before.
--r
n
i
.
l
fin
,-A JOE;
1
4
1
,
II
;r
e
-
1 'r.
0-0
rt
Jig
SUBSEA
TECHNOLOGY
SUBSEA
TECHNOLOGY
different manufacturers use different interface protocols when developing subsea control systems, a situation
that complicates integration. Industry standardization
must go farther to ensure across-the-board regulation
with new technologies.
The North Sea has long been recognized as the test bed
for subsea technologies and services, and as a mature
province, it will continue to be the seat of subsea learning. The UK will continue to pioneer and internationalize new skills, technologies, and expertise into frontier
areas. Subsea UK is committed to promoting opportunities in emerging markets and disseminating the technological expertise of the UK subsea industry with the goal
of extending subsea technology into frontier areas.
Keeping ahead of the game in terms of R&D is more
important than ever, and Subsea UK will continue to
assist its members to lead the challenge of pioneering
new technology and expertise.
I
l y l lr 7
rITI I
w
DELMAR
%woe
Scotland
Aberdeen,
95
SUBSEA
TECHNOLOGY
96
UNCOMPROMISED
SUBSEA WELL
CONTROL
The PTS MODUTree
Subsea Test Tree
Landing String
Assembl y
PTS MODUTree
DH Control System
For more information on how
PTS can provide an integrated
Well Testing Package for your
project, please visit us at
www.pts -technology.com
97
SUBSEA
TECHNOLOGY
S I'L
..
www.spe.org/store
ore
-quemi
l
NEW TITLE
Low Invasion Coring
J.B. Bloys and H.R. Warner Jr.
The latest addition to SPE' s Monograph Series, Low Invasion Coring will help readers develop an
understanding of how to app ly the array of technologies required for successful comp letion of a lowinvasion-coring (LIC) project. This monograph addresses the princi ples of obtaining low-invasion cores and
provides essential practical ti ps for eng ineering field LIC projects . Appendices provide detailed information
on specific core-anal ysis procedures.
Contents :('replanning Low-invasion-coring bit selection Other downhole hardware Low-invas ioncoring fluids Rigsite operations Coring poorly consolidated sandstone Core analysis
Appendices include :Summaries of selected SPE papers concerning LIC technolog ies Special
circumstances-sponge coring and the use of noninvading core gel Impact of oil-based mud on connate
water saturation and other rock properties
98
m
r "
(C:pne s
15 March 2012)
M 1!
or
V?
Wildcatters'Open Committee
Don Crow,Lufkin Industries - Committee Chair
??
1 11
z EXA s
i A Th
w
w
a
y
Dan Steele,Independent
Sponsorship is the only way to guarantee a spot in the tournament and space is limited so register early.
For more information ,contact Nikki McDermott at nmcdermott@i paa.org or 800/433-2851 or visit IPAA Meetings
online at www.ipaa.org
tech
WATCH
gas line to rupture, and the gas was ignited by the ignition system on a nearby truck, causing a massive fire.
The government of British Columbia (BC) judged the
Weir-Jones system so effective that it elected to install
the system on the George Massey Tunnel south of Vancouver to prevent motorists from being trapped beneath
the river during an earthquake.
The genesis
Founded in 1971, the Weir-Jones Engineering Group specialized in vibration monitoring, running burst tests on
line pipe in northern Alberta. These tests are destructive
and only last a few milliseconds, so you dont get an
opportunity to rerun the test if you dont get the data
the first time around, said Iain Weir-Jones, company
president. The data acquisition systems have to be
super-reliable and very quick.
Early on, company personnel took measurements,
did some engineering work, and turned the data over
to their clients. Most of what we did was tell people like
metallurgists or pipeline designers or chemical engineers what their systems were doing so they could modify them and change process parameters, he said. It
became apparent that, although our expertise was in
collecting information, there were a number of areas
where it would be useful to collect information for
events in an automated manner.
The goal was to remove the human factor and analyze
the data in real time. We started developing systems
which had, for want of a better word, innate intelligence, he explained.
Ultimately, the company began developing systems
that could monitor vibration patterns and determine
whether or not they were threatening. This became the
genesis of the earthquake early warning system (EEWS).
Instead of monitoring mechanical vibration, the system
listens to vibrations in the earths subsurface. It works on
a premise that is familiar to geophysicists the time difference between compressional (P) and shear (S) wave
arrivals. The system senses the arrival of P waves, which
travel faster than S waves and can be indicative of a
major quake.
Febr uar y 2012 | EPmag.com
H A R T E N E RGY
HARTENERGYSTORE.com
bb
Content highlights:
Current activity overview in liquids-rich plays
ye ooK
?/
i m. Y'ir
EP
STREW
Top Sellers:
Global Shale Gas Basins map
2011 Eagle Ford Directory
RINs Report
HARTENERGYSTORE.com
Email custserv@hartenergy.com
or call 713.260.6400
60-)
H % R 1. L t -t -
Marcellus Playbook
tech
WATCH
If we pick up the P wave reliably, quantify it, and determine whether it is the
precursor of a potentially damaging S
wave, then weve got a time lead before
the arrival of the S wave, he said.
How it works
The subsurface is a noisy place, so redundant sensors
are needed to validate the P-wave arrival. Typically these
sensors are placed about 1 km (0.6 miles) apart. When
two or more sensors pick up a P-wave signature, the Pwave arrival is validated.
The system then studies the amplitude and frequency
of the signature. If the signature is determined to be
valid and confirms the incoming S wave will cause damage, the system triggers the alarms that have been put in
place. In the case of the Massey Tunnel, warning signs
are turned on, and the tunnel is closed until the danger
is past.
The EEWS also takes into account the design characteristics of the structures being protected. New building
codes along the west coast of North America ensure
structures can withstand certain ground motion. The
threshold level at a brand new high-rise would not necessarily be the same as a 30-year-old facility, he said. We
tailor the criteria based on the design characteristics of
the structure.
Weir-Jones said that everything from P-wave detection
to estimating damage risk takes about one-third of a second and requires no human intervention. He added
that a facility 200 km (120 miles) from the epicenter
of an earthquake might have only a 15-second window
between the P arrival and the S arrival. You dont have
a huge amount of time, but its enough time to shut
down compressors, bring elevators to the lobby, close
tunnels, and shut off big natural gas pipelines, he said.
Weir-Jones emphasized his systems are not to be confused with regional earthquake warning networks. The
facility-specific systems we are building are hardwired
and provide instantaneous response with no lost time,
he said.
1
DEVELOPING LINCONVENTIONALS
C? Nf ? D ?
t o' s
It 1%
0em
ri m
tST .
+1.
!OMn
- ..a
on June 18-20,2012.
H A R T F N FRGY
PREMIER
HALLIBURTON
CSUR
HOSTED BY:
Investor
MIDSTREAM
UNCONVENTIONAL
SPONSORS
drillingl .lfn
/,/SELECT
BRONZE
CDISEALS %l
lon
amX
PLATINUM
SILVER
NEWPARK
DRILLING FLUIDS
A . RAGON
MICroS
SPONSORS
iSmiC
tech
TRENDS
ing drilling (CTD) operations in the Niobrara formation in Kansas. According to AnTech Ltd., the Polaris is
an affordable alternative to rotary steerable systems that
increases drilling efficiency and speed while making
minimal impact on the environment.
The Niobrara drilling program undertaken by AnTech
and Advanced Drilling Technologies consisted of three
wells drilled directionally. The first well was drilled to
1,000 m (3,000 ft) true vertical depth (TVD), with more
than 185 m (600 ft) of lateral displacement. The second
well was drilled to more than 450 m (1,500 ft) TVD
with an average dogleg severity of approximately 7.5
degrees. The tool, which includes a solid state gyro system, removing the need for a magnetic steering instrument, was easy to steer, and enabled both wells to be
completed in less than one day. The Polaris also has sensors close to the bit allowing corrective actions to be carried out immediately, the company said. Antech.co.uk.
tech
TRENDS
hydraulically fractured and enables the well to be completed in a single, continuous process. The technology
works by using a series of balls pumped through the
completion string to open valves that allow access to the
formation. According to the company, more than 20
sleeves per stage can be installed in a cemented liner
and opened sequentially with a single ball.
In one application on the Norwegian shelf, the i-Frac
system reduced stimulation of a North Sea well to 1.5 days
compared to an average of 40 to 50 days. The company
was able to open 56 valves in three zones in the North Sea
well by dropping only three balls. The ball drop sleeve system also has improved completion time and costs in the
US Bakken and Woodford shale plays, i-Tec said. I-tec.no.
A Geoteric RGB blend is imaged to show detailed channel morphology. (Image courtesy of ffA)
be applied in conventional and unconventional reservoir analysis to directly translate geophysical data into
geological information while making interpretation
workflow more efficient.
The GeoTeric suite features the Adaptive Geobodies
technology, which was developed in conjunction with
Lundin Norge, used to extract 3-D geobodies in areas
such as braided channels or karst systems where it would
be impossible for other conventional seismic interpretation techniques, ffA said. This technology offers high-resolution 3-D manual manipulation tools and the ability to
account for the interplay between different geological elements when examining the geological expression in seismic data from an image processing perspective. GeoTeric
also provides access to post-stack techniques for reducing
the noise level in seismic data while preserving information content. Geoteric.com.
REGIONAL REPORT:
MIDDLE EAST
he Persian Gulf is linked to the destiny of energy security and stable oil prices in the global market. The
region holds 65% to 75% of proved global petroleum
reserves and 35% to 50% of natural gas, exporting 20%
of the worlds energy through the Strait of Hormuz. It is
clear the developing crisis in the Persian Gulf has the
potential to adversely impact the global economy as well
as regional and trans-regional security.
Maintaining stability in this region is critical to ensuring
the continued supply of oil and gas to many countries.
Because of the strategic role played by the Persian Gulf
with regard to the global oil industry, every step taken
against Irans nuclear program makes the stability of the
global energy market more tenuous.
REGIONAL REPORT:
MIDDLE EAST
international
HIGHLIGHTS
For additional
information on
these projects
and other global
developments:
EPmag.com
MIDDLE EAST
SOUTH AMERICA
GULF OF MEXICO
Stone lands BPs Pompano
Stone Energy Corp. has closed the acquisition of deepwater assets from BP Exploration & Production in the
US Gulf of Mexico (GoM) for US $167.6 million. The
assets include interests in 23 exploration leases near the
Pompano field. The acquisition also includes BPs 75%
operated working interest (WI) in the five-block Pompano field in Mississippi Canyon; a 51% operated WI
in the adjacent Mississippi Canyon Block 29; and a
50% nonoperated WI in the Mica field, which ties back
to the Pompano platform. Estimated proved reserves
108
DEVELOPING UNCONVENTIONALS
May 14 - 16 , 2 0 1 2
Colorado Convention Center
1
J
Denver, Colorado
RE56RVOIRS
Register online:
hartduo.com
UNCONVENTIONAL OIL a
North America 's Bountiful Resource
he 2012 DUO'
" Reservoirs Conference & Exhibition focuses on the geology, technology and
economics of unconventional oil resources. Plays like the Bakken and Niobrara are driving remarkable
growth in production and reserves. Leading operators, geoscientists and energy economists will deliver their
insi g hts on this rap idl y chang ing sector. Find out where the action is now and what new plays will be emerging.
With more than 3 ,500 attendees in just two years , this conference provides one of the industry's premier
networking events.
PLATINUM SPONSORS
INVESTMENTS L.P.
lon
Q?Pmss
TGS)
A- '
IT
PRESENTED BY:
HART ENER GY
SILVER SPONSORS
N ! TN C R L AN D , E!W LL
g A E EO C I A T l E , INC .
JIM.
NEWPARK
DRILLING FLUIDS
0y
?
S lalOil
MicroSeismic
?
64GLE??
" T'
- /.
GOLD SPONSOR
F'`'
BAKER
HUGHES
Tripoint LLc
Weatherford'
Schlumberger
WMI
_-damr
HOSTED BY:
Up Investor MIDSTREA,MS
C
U5 0"L & GAS C N ER
international
HIGHLIGHTS
AFRICA
Lukoil outlines Africa spend plans
Lukoil plans to spend US $500 million
to $600 million drilling at least three
wells offshore West Africa in 2012,
according to Vice President Leonid
Fedun. In December 2011, Lukoils
Independence-1X deepwater exploration well in Block CI-401 offshore
Cote dIvoire discovered light oil and
gas condensate. The company has
scheduled an appraisal well to be
drilled in 1H 2012. The privately
owned oil company has drilled five
wells in West Africa, four of which
have confirmed the presence of hydrocarbons. Lukoil has three blocks offshore Cote dIvoire. It also holds a
stake in the Cape Three Points deepwater block offshore Ghana.
How
. can we work
,u .
th
Fla=id
and
iEL
M
91W
t a, i
, t"
t, 1P
From enterprise-wide solutions to specific
applications, P2 Energy Solutions gives
you the flexibility to make the most of
upstream information no matter how
things change.
That's why all of the world's top 25 oil and
gas companies prefer P2 - along with over
half of small-to-medium operators.
Learn more at p2energysolutions.com.
110
UNCONVENTIONALS :
The New Standard
DEVELOPING U N C O N V E N T I O N A L S
T-ae
QJ4INAL
r-%
1I
Peter Robertson
Senior Advisor
Deloitte LLP
r-.4
r?
P
49A,b
Scott Sheffield
David Hill
CEO
Steve Antry
V R N a t u r a l Gas
Economy Operations
Pioneer
Natural Resources
CEO
F(N le Energy Co.
Encana
Oklahoma LLC
of
Former US Secretary
SPONSORS
PRESENTED BY:
HARTENERGY
PREMIUM
EP
investor
MIDSTREAM
N
ILNEWPARK
DRILLING FLUIDS
l"n
BRONZE
SILVER
fazi ,
-01
1
Slatoil
MicroSeismic
GOLD
PLATINUM
P
HOSTED BY:
of
State
Wolf E. Regener
Expres
Chesapeake Q
=SEALS
T Aw
i
Oil 1
.
NCTNIIILAND .5 WCL L
& A5SOCIA Tt$ , INC.
Schlumherger
SPONSORS
W
Weatherford'
v Tripoint LLC
??GLEr?`;
=--
BAKER
HUGHES
international
HIGHLIGHTS
EUROPE
Statoil finds twin for Skrugard discovery
Statoil and partners Eni Norge AS and Petoro AS have
made a substantial oil discovery on the Havis prospect in
the same license as its Skrugard find in Production
License 532 in the Barents Sea. This is the second highimpact discovery in the countrys northern seas in nine
months. Estimated recoverable volumes are 400 MMboe
to 600 MMboe.
Well 7220/7-1, drilled by the Aker Barents semisubmersible rig to a vertical depth of 2,200 m (7,218 ft) in
365 m (1,198 ft) water depth, proved a 48-m (157-ft) gas
column and a 128-m (420-ft) oil column. The partnership will drill an appraisal well on Skrugard to assess further upside potential in the licenses.
Republic of Cyprus. Having already had significant success offshore Israel, the US independent has drilled a
successful well on the Cyprus Block 12 prospect in the
Greater Levant basin. The Cyprus A-1 well encountered
approximately 94 m (310 ft) of net gas pay in multiple
high-quality Miocene sand intervals.
The discovery well was drilled to a depth of 5,860 m
(19,225 ft) in 1,689 m (5,540 ft) water depth. The estimated gross resource range is 5-8 Tcf, with a gross mean
of 7 Tcf. Total gross mean resources for the companys
five discoveries in the basin so far are estimated to be
more than 33 Tcf.
Shtokman partners delay final investment decision
Shtokman Development AG has delayed a final investment decision (FID) for the Shtokman gas megaproject
through March 2012. Project shareholders OAO
Gazprom, Total SA, and Statoil ASA had previously
targeted an FID by year-end 2011, but discussions were
stalled after Total and Statoil pressed for tax breaks
from the Russian authorities. The Shtokman gas field
in the Barents Sea holds 3.9 Tcm of gas reserves. Development has been delayed several times because of the
fields technical complexity and economic scale. Phase 1
production was initially set for 2016.
ASIA/PACIFIC RIM
OGDCL hits hydrocarbons in Pakistan
The operator of the Zin exploration license in the
Pakistan province of Balochistan, Oil & Gas Development Co. Ltd. (OGDCL), has confirmed a hydrocarbonbearing horizon in exploratory well Zin X-1 in the Dera
Bugti district. The company, which operates the license
with a 95% working interest, drilled the well to a depth
of 2,300 m (7,546 ft) targeting the hydrocarbon potential of the Pab sandstone and Sui main limestone formations. The first targeted zone tested 5.48 MMcf/d of gas
through a 32/64-in. choke at a wellhead flowing pressure of 1,050 psi.
The Havis discovery in the Barents Sea is Statoils second highimpact find in Norways northern seas in the last nine months.
(Map courtesy of Statoil ASA)
jl
www.inte[tigentenergyevent.com
International 1
TRANSFORMATION -
27-29 March
Jaarbeurs,Utrecht,The Netherlands
the industry
An exclusive platform to discuss digitally enabled and
associated technology as well as the opport unity to debate
on the
MOVE
People
Martin Craighead has succeeded Chad Deaton as
Baker Hughes president
and CEO. Deaton will
remain board chairman.
John Bodin has been named director,
Global Business Development, for
Delmar Systems Inc.
Summit Energy Services has promoted
Will Reedy to COO.
Emerson Process Management has appointed Frode
Sedberg regional manager
based in Brazil, within its
Roxar Software Solutions division.
work with key multinational and stateowned oil and gas companies throughout the Middle East.
f/1Ts -1T
+
a?c , .
114
w.'.nellr y?
?
,
?r.?F?RJro ..
J[
.i
??
'^`?
+
'1
m1f
-A,
EP
on the
MOVE
Group Publisher
RUSSELL LAAS
Tel: 713-260-6447
rlaas@hartenergy.com
Associate Publisher
DARRIN WEST
Tel: 713-260-6449
dwest@hartenergy.com
United States
Canada / Latin America
1616 S. Voss Road, Suite 1000
Houston, Texas 77057 USA
Tel: 713-260-6400
Toll Free: 800-874-2544
Fax: 713-627-2546
Sales Manager
Eastern Hemisphere
DAVID HOGGARTH
Tel: 44 (0) 7930 380782
Fax: 44 (0) 1276 482806
dhoggarth@hartenergy.com
Advertising Coordinator
CAROL NUNEZ
Tel: 713-260-6408
cnunez@hartenergy.com
Subscription Services
E&P
1616 S Voss Road, Suite 1000
Houston, Texas 77057
Tel: 713-260-6442
Fax: 713-840-1449
custserv@hartenergy.com
List Sales
MICHAEL AURIEMMA
Venture Direct
212.655.5130 phone
212.655.5280 fax
mauriemma@ven.com
ADVERTISER INDEX
Ariel Corporation . . . . . . . . . . . . . . . . . . . . . 21
Baker Hughes Incorporated . . . . . . . . . . . . . 41
Boot & Coots, A Halliburton Service . . . .34-37
Cameron . . . . . . . . . . . . . . . . . . . . . . . 87, 89, 91
CDI Seals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
CGGVeritas . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Checkers Industrial Safety Products . . . . . . . 64
CNPC Greatwall Drilling Co. . . . . . . . . . . . . 30
CTAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Cudd Energy Services . . . . . . . . . . . . . . . . . 73
Delmar Systems, Inc. . . . . . . . . . . . . . . . . . . . 95
Diamondback Industries . . . . . . . . . . . . . . . . 75
Dragon Products, Ltd. . . . . . . . . . . . . . 17, 67, 85
E&P . . . . . . . . . . . . . . . . . . . . 101, 103, 109, 111
Fairfield Nodal . . . . . . . . . . . . . . . . . . . . . . . . 63
FMC Technologies . . . . . . . . . . . . . . . . . . . . . 93
Forum Energy Technologies . . . . . . . . . . . . . 47
Frontier Wellhead . . . . . . . . . . . . . . . . . . . . . 19
Fugro Jason . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
GasFrac Energy Services, Inc. . . . . . . . . . . . 68
Gas Gun, The . . . . . . . . . . . . . . . . . . . . . . . . . 90
Greenes Energy Group . . . . . . . . . . . . . . . . 49
Halliburton . . . . . . . . . . . . . . . . . . . . . . . . . 9, 51
Halliburton Landmark Software & Services . . 4
IPAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
i-TEC Well Solutions . . . . . . . . . . . . . . . . . . . 77
J&J Truck Bodies & Trailers . . . . . . . . . . . . . . 71
KBR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
McJunkin Red Man Corporation . . . . . . . . . IFC
McPhar International . . . . . . . . . . . . . . . . . . . 58
Mewbourne College of Earth & Energy . . . . 15
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Moduspec . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Momentive . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
National Oilwell Varco . . . . . . . . . . . . . . . . . . 69
Newpark Drilling Fluids . . . . . . . . . . . . . . . . . 28
Optimization Petroleum Technologies . . . . . 57
P2 Energy Solutions . . . . . . . . . . . . . . . . . . . 110
PGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Production Technology & Services . . . . . . . . 97
Reed Exhibitions/SPE Intelligent Energy . . 113
Rockpile Energy Services . . . . . . . . . . . . . . . 82
Rockwater Energy Solutions . . . . . . . . . . . . . 81
Roxar Software Solutions . . . . . . . . . . . . . . . . 55
Schlumberger . . . . . . . . . . . . . . . . . . . . . . 3, BC
Society of Petroleum Engineers . . . 59, 98, 114
TBC-Brinadd . . . . . . . . . . . . . . . . . . . . . . . . . 65
Tenaris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Tetra Technologies . . . . . . . . . . . . . . . . . . . IBC
Tex-Az Field Services, Inc. . . . . . . . . . . . . . . 82
United Electric Controls . . . . . . . . . . . . . . . . 64
V&M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Weatherford International, Ltd. . . . . . . . . 24, 25
Zeeco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
115
last
WORD
nalysts have predicted that North Sea decommissioning costs over the next 40 years could exceed 47.5
billion (US $75.3 billion), and it is estimated that around
150 assets will be decommissioned in the Gulf of Mexico
in the next five years.
Decommissioning is one of the most complex phases in
the asset lifecycle, and managing the safety of employees
and operational risk poses a number of major issues for
operators and project support partners.
In some cases, installations that have been producing
for 30 years have had the same core workforce on it since
hookup and commissioning. It is important to realize that
for these individuals in particular, decommissioning is not
business as usual.
Changing risks
A platforms risk profile changes when production has
ceased and the installation moves into the engineering
down and cleaning and module process and utility separation phases. The move from production to active reduction in the hydrocarbon inventory changes the working
practices, and other specialist service providers such as
waste handling specialists and heavy lift contractors
become involved in the project.
An important difference from steady state producing
operations to the decommissioning process is that the
physical operating environment is constantly changing,
116
THE
TETRA
DIFFERENCE
iEiRA
"&7ey0y&"14
iT PRODUCTION
Fro )!i
10
wuUC I It
IMP
446
Well Testing
Froc Flow Back
Sand Management
e ,a
Production Enhancement
Wellhead Compression
foci
edicated to
t
r
TETR
Si'r?J
'
bgement
s
i
It sal
Reserve .
7o are ree
281.364.5169
t _ sa les @ te t ratec.co m
In1!IAl'1
FLOW-CHANNEL HYDRAULIC
FRACTURING SERVICE
1211
S4
Measurable Impact
Schiumberger