Revista E&P - Noviembre 2011

N OV E MB E R 2 0 1 1
Drilling Automation
and Control
Flow Assurance
and Sand/Water
Management
Passive and
Microseismic
Technology
Deepwater
Intervention
Improving
Operating
Efficiency
Regional Report:
Middle East
Europe.
Powered by Norwegian gas.
Gas production from the Norwegian Continental Shelf can supply millions of Europeans with power
Both industry and homes are connected to a cost competitive energy source, and will remain so for decades
to come. Be enlightened goodideas.statoil.com. There
'
s never been a better time for good ideas.
Statoil
Drilling Automation
and Control
Flow Assurance
and Sand/Water
Management
Passive and
Microseismic
Technology
Deepwater
Intervention
Improving
Operating
Efficiency
Regional Report:
Middle East
E P MAG. COM
N OV E MB E R 2 0 1 1
DOF delivers intelligence And integrAtion
TRANSFORMATiON
t o a di gi t al age
f MC Technologies
RLWI: A practical new way
to bring unproductive
'
into production.?
Sometimes a well needs some fixing to get production back up where it should be - sand bailing, screen repair,
re-perforating, replacing valves or plugs. Now FMC Technologies has the tool ~ thoroughl y field tested in the Nort h Sea - to
make the fixes using efficient monohull vessels instead of costl y ri gs. It 's called Riserless Light Well Intervention (RLWI).
It can increase recovery by up to 46%, and do it affordabl y. Learn more at www.fmctechnologies.com
We put you first.
And keep you ahead.
www.fmctechnologies.com
1 I Ml technologies All rights-rest^
78
REGIONAL REPORT:
MIDDLE EAST
IMPROVING OPERATING EFFICIENCY
Air drilling improves efficiency in
challenging well bores
Expert evaluations are essential in shale oil plays
North Sea production platform gets vibration
monitoring control upgrade
PASSIVE & MICROSEISMIC TECHNOLOGY
Microseismic data: Understanding
the uncertainty
Imaging breakthrough promises more reliable
SRV calculations
DRILLING AUTOMATION & CONTROL
New software removes guesswork from
directional applications
Get readyThis is not a drill
FLOW ASSURANCE &
SAND/WATER MANAGEMENT
Hybrid elastomers deliver the best of both worlds
Pipe-in-pipe riser system, bends overcome
HP/HT challenges
DEEPWATER INTERVENTION
Bar set higher for deepwater, complex
well interventions
IndustryPULSE:
Preaching to the anti-choir
The IPAA has been joined by local
landowners in shale plays to separate fact
from fiction.
EXPLORATION & PRODUCTION
W O R L D W I D E C O V E R A G E
NOVEMBER 2011
VOLUME 84 I SSUE 11
A HART ENERGY PUBLI CATI ON www. EPmag. com
COVER STORY
30
Transformation
to a digital age
As oil and gas resources become more difficult
to find and produce, the industry has turned its
focus to technologies that allow better real-time
decision-making, more automation, and
improved collaboration.
6
WorldVIEW: Energy plays
major role in World history
Hart Energy speaks with Daniel Yergin,
chairman and co-founder of IHS
Cambridge Energy Research
Associates (CERA).
10
Unconventional: Woodford
Oklahomas back yard
turns up world-class resource
Source of the deepest active shale play in the US delivers
liquids-rich pay.
40
44
46
50
54
58
60
56
62
64
69
01-4TOC_NOV_01-4 TOC 10/22/11 1:36 AM Page 1
AS I SEE IT
The frac water debate: Putting a resource in perspective 5
MANAGEMENT REPORT
Cultural change delivers drilling performance improvement 14
DIGITAL OIL FIELD
Real-time data can be turned into wellsite answers 19
EXPLORATION TECHNOLOGY
The ears of the ocean 25
WELL CONSTRUCTION
Can wells talk? What do they say? 27
PRODUCTION OPTIMIZATION
From surface to seafloor 29
TECH WATCH
They came from outer space 72
TECH TRENDS 76
INTERNATIONAL HIGHLIGHTS 82
ON THE MOVE/INDEX TO ADVERTISERS 85-86
LAST WORD
Environmental concerns stymie NY shale development 88
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@hartener-
gy.com. Copyright Hart Energy Publishing, LP, 2011. Hart Energy Publishing, LP reserves all rights to editorial matter in this magazine. No article may be repro-
duced 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.
DEPARTMENTS AND COMMENTARY
ABOUT THE COVER The industry has moved to embrace the concepts
of intelligent energy and integrated operations. Today, these concepts are
being applied much more broadly than ever before under the umbrella of
the digital oil field. (Photo courtesy of Saudi Aramco; cover design by
Laura J. Williams)
COMING NEXT MONTH Find out what the future has in store for oil and gas operations
in 2012 with E&Ps December cover story, Experts Predict, featuring a look ahead by analysts
at Infield Systems and members of the E&P Advisory Board. While these industry experts look
forward, the editorial team takes a look back at 2011 milestones in exploration, drilling, and
production. Be sure to read the Offshore feature for December, which presents developments
in oil and gas E&P in the dynamic India market, as well as the shale focus for the month,
Arkansas Fayetteville. As always, while youre waiting for the next copy of E&P, remember to
visit www.epmag.comfor news, industry updates, and unique industry analysis.
01-4TOC_NOV_01-4TOC_NOV 10/21/11 11:34 PM Page 2
The Low PRESSURE AUTOCHOKE
CONSOLE* (LPAC*) unit gives
precise bottomhole pressure
control during MPD and UBD
drilling operations - keeping you
in the pressure stability window.
Digital touch screen
interfaces located in the
driller 's cabin and rig floor
offer greater coordination
during pressure-critical
operations. With simultaneous
high-resolution monitoring
and direct pressure control of
our uni que AUTOCHOKE* unit
,
you gain greater operational
performance and efficiency.
During the underbalanced
drilling of a series of laterals ,
the system doubled overall ROP
from 15 to 30 ft/hr and held the
required surface pressure of
350 psi during connections. As
a result , the operator cut drilling
time by 10 days, saving $1 m.
Mi SWACO
A Schlumberger Company
www.miswaco .slb.com/LPAC
i
a
i l . . , . . . . . .
-
I,
[
r
'i ' rte'
)0
AIR!
Fem
.1
ONLINE CONTENT NOVEMBER 2011
PREMIUM CONTENT Subscribe @ EPmag.com/explorationhighlights
Apache find flows from Hogshooter Granite Wash
A Beckham County, Okla., completion by Apache Corp. had a pre-
liminary flow rate of 889 bbl of 47API oil, 4.59 MMcf of gas and 202
bbl of water per day.
AVAILABLE ONLY ONLINE
Venezuelas slow-moving
hydrocarbon developments
By Scott Weeden, Senior Online Editor
Natural gas is targeted for domestic production
while heavy oil could maintain or increase
Venezuela's output for exports.
UH program will create next-
generation subsea engineers
By Nancy Agin, Associate Editor
First-of-its-kind academic program at the
University of Houston begins with the question,
What does it take to be a subsea engineer?
Poland lobbies against EU
shale gas regulations
By Kristie Sotolongo, Associate Editor,
Newsletter Group
Poland distanced itself from having shale
gas development be a common European
project in the wake of France and several
other countries banning fracing.
R
E
A
D
T
H
E
L
A
T
E
S
T
E
P
m
a
g
.c
o
m
IN
D
U
S
T
R
Y

N
E
W
S
Total discovers major gas field
offshore Azerbaijan
Paris-based Total has discovered a major
gas field in Azerbaijans Absheron Block in
the Caspian Sea, according to Oil and Gas
International.
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
Bapetco reports new gas field
in Western Desert, Egypt
The Badr El Din Petroleum Co. (Bapetco)
discovered a new gas field in the Western
Desert of Egypt that is capable of producing
12 MMcf/d.
Signature
QUARTZ GAUGES
HPHT Measurements
Throughout Your Test
On a fifteen-day offshore well test with
average temperature exceeding 400 degF,
Si gnature quartz gauges delivered continuous
high-quality pressure measurements.
Rated to 30,000 psi and 410 degF,
Signature gauges help you meet test
objectives by providing accurate , high-
resolution measurements-for the
duration of your test.
Be certain.
www.slb.com/Signature
Schiumberger
s
.
r b -
1
PRODUCTION ENHANCEMENT
"Seen side by side, there'
s
no doubt which will be the
superior producer.
"
The only service of its kind , the Halliburt on AccessFrac
stimulation service reliably delivers maximized propped
fracture volume for improved long-term production. To do it ,
the AccessFrac service provides full access to complex fracture
networks in unconventional formations-significantly increasing your
reservoir contact . Indeed, better proppant distribution can reduce the
amount of proppant required and improve efficiency. In addition, the
customizable conductivity of the AccessFrac service-made possible
by unique pumping and diversion technology-allows for maximum
oil and gas flow to the wellbore.
What 's your fracturing challenge?
For solutions, go to halliburton.com/accessfrac.
Solving challenges: HALLIBURTON
7
r
r w l h:
/
'
/ /
rr
'Air
JAW
y .: , ' r y
pp
r q .
1
1
- 1 0
0
. e y,
'i
W
hen interest in the Eagle Ford shale took off, South Texas residents began
questioning whether the region would have enough water for hydraulic frac-
turing, and groundwater districts in the area were called upon to provide guidance.
The problem was that these regional boards did not know enough about fracing to
be confident in providing answers.
Dr. Darrell Brownlow, principle, Intercoastal Inland Services LLC, has been a
board member on groundwater districts in the area and a member of the South
Central Texas Regional Planning Group. He also is a rancher and landowner within
the Eagle Ford play, which places him in a unique position to examine the water
issue.
When Eagle Ford became front and center and people began questioning
whether well have enough water, the first question was, How much water will we
need? he said. I looked at the water supply because I heard a lot of ridiculous
claims, rumors, and half truths.
The State of Texas does a good job in water planning and water supply usage,
Brownlow said, but nobody had a firm grasp of what this new demand on water
resources would mean.
An important fact to place on the table is that the area has significant ground-
water resources, he said. Millions of acre/feet of water are used for such things as
municipal usage, steam electricity, industry, and agriculture. The volume of water
that likely would be employed for fracing in the Eagle Ford would not make up a
large piece of the pie.
Brownlow determined that approximately 15 acre/feet of water are used for a typ-
ical frac job. He used this figure to draw some comparisons. The groundwater dis-
tricts permit two acre/feet per acre of land for agriculture purposes, he explained.
So the 15 acre/feet of water used for fracing is equal to water used for 7.5 acres of
agricultural production.
In simple comparative economic terms, the benefit from 80 to 100 oil wells is US
$2.5 billion as opposed to $200,000 to $300,000 for corn. Using the water for frac-
ing is 13,000 times as beneficial economically, he said.
Though revenue is not the sole determinant of value, it carries weight in the final
debate. Fortunately, the governing bodies in the area are willing to listen to what
Brownlow has to say.
Were a water savvy area. We have a thriving and viable
water planning community that is starting to work on this
issue. Its not too late to ensure the mechanisms are in
place to plan and do things right. The horse is not out of
the barn.
As I
SEE IT
1616 S. VOSS ROAD, STE 1000
HOUSTON, TEXAS 77057
P: +1 713.260.6400 F: +1 713.840.0923
www.EPmag.com
The frac water debate:
Putting a resource
in perspective
5
Read more commentary at
EPmag.com
JUDY MURRAY
Editor
jmurray@hartenergy.com
Editor JUDY MURRAY
jmurray@hartenergy.com
Senior Editor RHONDA DUEY
rduey@hartenergy.com
Senior Editor TAYVIS DUNNAHOE
tdunnahoe@hartenergy.com

International Editor MARK THOMAS
mthomas@hartenergy.com
Associate Editor NANCY AGIN
nagin@hartenergy.com
Corporate Art Director ALEXA SANDERS
Senior Graphic Designer LAURA J. WILLIAMS
Production Director
& Reprint Sales JO LYNNE POOL
Senior Editor/Manager,
Special Projects JO ANN DAVY
Executive Editor Online RICHARD MASON
Director of Business Development ERIC ROTH
Group Publisher RUSSELL LAAS
Editorial Advisory Board
CHRIS BARTON
Sr. VP Business Development, Oil & Gas., KBR
KEVIN BRADY
VP, Sales & Marketing,Verdande Technology Inc.
MIKE FORREST
Exploration Consultant, formerly with Shell
JOHN M. GILMORE JR.
Director of Global Industry Solutions Upstream
Oil & Gas, Invensys Operations Management
CHRIS JOHNSTON
VP & Managing Director, North America, Ensco
ULISSES T. MELLO
Manager, Petroleum & Energy Analytics, IBM
DONALD PAUL
Executive Director, University of Southern
California Energy Institute
EVE SPRUNT
Business Development Manager,
Chevron Energy Technology Co.
MANUEL TERRANOVA
Sr. VP Regional Operations & Global Sales,
Drilling & Production, GE Oil & Gas
RONNIE WITHERSPOON
Sr. VP of Marketing & Business Development,
Nabors Drilling USA LP
DENNIS A. YANCHAK
Sr. Geosciences Advisor, Apache Corp.
Vice President, Digital Media
RONS DIXON
Senior Vice President, Consulting Group
E. KRISTINE KLAVERS
Executive Vice President & CFO
KEVIN F. HIGGINS
Executive Vice President
FREDERICK L. POTTER
President & Chief Executive Officer
RICHARD A. EICHLER
05 AsISeeIt-NOV_05 AsISeeIt-NOV 10/21/11 11:35 PM Page 5
EP
W
hat the world does not understand about shale gas
development could fill vast libraries. Ignorance
alone is not a problem, but ignorance combined with
alarming misinformation rapidly leads to headaches
for producers.
Typically the industry has dealt with landowners and
governmental bodies in its attempts to find reserves.
But, given the fact that some of the biggest shale plays
are in urban and suburban areas, the general public is
now involved. With some of the misinformation that is
being picked up by the general media, pressure is
mounting on governments to step in and mitigate imagi-
nary problems.
The industry has fought a poor public image for years
without any obvious success in battling back. With so
many constituents and not much central organization,
it has been left to a few independent entities to try to
spread the message while the battle rages.
Recently there has been positive movement, partly
because industry groups are educating themselves
about their oppositions tactics. The Independent
Petroleum Association of America (IPAA), for instance,
has launched Energy In Depth (EID), a website that
not only provides factual information about the
industry but actively looks for misinformation and
corrects it. The media and the public are starting to
take notice.
A need for speed
EID was developed in response to a document called
Drilling Down that was presented to Congress Oct. 31,
2008. We call it the Halloween hearing, said Jeff Eshel-
man, vice president, public affairs for IPAA. The docu-
ment was basically a wish list from groups like the National
Resources Defense Council to regulate the oil and gas
industry.
The then-Democratic congress was, he said, showing
some willingness to adopt it. Concerned about the
impact this could have on the countrys independents,
IPAA and some of its coordinating associations decided
that a response was needed. The response became Project
BRIEF (bring real information on energy forward).
Project BRIEF also got attention, partly for the eco-
nomic impact that Drilling Down would have on the
industry and the US:
204,272 oil wells shut in (first year alone);
150,202 natural gas wells shut in;
183,000 b/d of lost oil production;
670 MMcf/d of lost gas production;
US $602 million in foregone royalties;
$285 million in foregone state severance taxes;
$505 million in foregone state income taxes;
$1.2 billion in foregone federal income taxes; and
$10 billion in industry compliance costs in the first
year alone.
Project BRIEF quickly developed into EID, a full-scale
communications and outreach program that acts as a
clearinghouse and message center for information on
energy. Its not just external, Eshelman said. Its also
an internal campaign to be sure the industry is on mes-
November 2011 | EPmag.com
6
industry
PULSE
Preaching to the anti-choir
The IPAA has been joined by local landowners in shale plays to separate fact from fiction.
Rhonda Duey, Senior Editor
Step-by-step
1. Anticipate the threat before it hits
2. Identify and attract credible partners and
supporters dedicated to the cause
3. Carry out extensive research and identify
the competition
4. Arm spokespeople and stakeholders with
the necessary materials (i.e. talking points,
fact sheets, presentations, contact lists, etc.)
5. Target key audiences
n Lawmakers/regulators
n Industry
n Media
n Coalition partners
6. Continually monitor the issue and rapid
response
7. Anticipate the next line of attack
Energy InDepths strategy; courtesy of IPAA
06-9 IndPULSE-NOV_06-9 IndPULSE-NOV 10/21/11 11:35 PM Page 6
.
, ..
.
0
0
r
KEEP EVERY FOOT DRILLED
TESCO CASING DRILLING'" is a globally proven technology with
over 3.3 million feet drilled. As the inventor of CASING DRILLING,
TESCO continues to set world drilling records. Whether offshore o
onshore, drilling vertical, directional, or horizontal wells, TESCO's
proprietary CASING DRILLING simultaneously drills and cases the
well, eliminating Non-Productive Time (NPT). CASING DRILLING
delivers all of the functionality of conventional drillpipe drilling,
with greater efficiencies and improved safety. With
reti
ievablelnd
non-retrievable CASING DRILLING systems,
working together with MWD/LWD and rotary
%
steerable systems, TESCO's innovative
technology delivers superior results.
P
P
)
.
XA
M, ,
1W
,
,
,
I
r.
' '
'
.te r
" s
k
i
It
"Aw
:4
mot
'
.
, -
te
rr''
\ d
4.
1
1
1, 1i;% 4jr
tom.
2}c
\
i -
'1 '0
. 4
v
}
'7 '
`,
~
,
j ;,
. Via
`
^
ti' ;
, :
` ; ) '
'
~
,.
/1.
M1
''
a
a
' ~ r
y
1
w.
' 1
:
.
.r
' <.`
'
r
' "
i
I
'
+
}
_
_ . .
i .1L`` ~`
,
'
? -i.
,1
:yL
..za si.1 ' u ::
'
Ft:4
"`
rti ls .tr.N
boo,
*
-in 16
.I
,
`
y
..
`
1L
r
'
1
nL:l!,
.vER 1A
y
_
'
s?
1
.
`
Va
l,
l
y
,
li i
t r
'
/
.
'1
.
(
11
X 0
`
17
,
,
1 ,
( M
'
.Y
1
'P1
.
44
'
w gel oco C Om
Pill
"
11
4q
1
4
"
al CDR
-A
.
, ked
a\
. .
4Y PRO, V
o
lnv
l
.
,
'
1._
sage and has the correct facts. We dont want our
spokespeople caught off guard.
One of the key targets for education is the general
media. EID is a product to keep us in constant contact
with news reports, he said. It establishes our organiza-
tion as a go-to source. We need to be proactive.
With media going digital, it is much harder to keep
tabs on what is being written, blogged, and tweeted.
Theres less accuracy, he said. We need to be ready
with a rapid response, and that has been one of the pro-
grams strong points.
Eshelman and his counterparts do not rely solely on
the EID website to spread the word. Prior to the FRAC
Act that was introduced in 2009, they began to call on
media contacts. We called hundreds of reporters, really
pounding the phone, he said. They were asking us,
Why are you calling about something weve never heard
of? We told them there was going to be a firestorm of leg-
islation hitting Washington. It worked.
More recently the EID crowd has made Josh Fox, pro-
ducer of the documentary Gasland, a pet project.
When he debuted Gasland, we started really chasing
the Fox, he said. We went wherever he would go, and it
really frustrated him. This included calls to the produc-
ers of Dylan Ratigans show on MSNBC and The Daily
Show, where Fox was scheduled to be interviewed.
Apparently he was furious after the Dylan Ratigan show,
Eshelman said. I think were getting on his nerves.
The national program has proven so successful that
IPAA has been asked to take it local. Already there is
EIDMarcellus.org, and a site for the Utica shale in Ohio
was announced in late September.
The program also is paying off with the people in the
regions who are most directly affected by shale develop-
ment. There are people in Pennsylvania who like what
theyre seeing, he said. But the opposition is so well-
organized and vocal. Theyre effective in putting a pro-
gram together on the ground.
Happy landowners
To the outside observer, it sometimes seems like every res-
ident of Pennsylvania and New York is attending endless
rallies defending their right to clean water. According to
one New York landowner, the truth is rather different.
Bryant La Tourette owns about 120 acres of land near
Oxford, NY. He attended a recent rally in Dimock, Pa.,
the epicenter of the polluted water outcry, where
three residents have filed suit against Cabot Oil and Gas
claiming that its fracing operations have sullied their
water wells.
There was a well-publicized rally to protect Dimocks
water, La Tourette said. Thats an important statement.
When we got there, there were about 15 people at
the rally to protest this. I asked how many of them were
from Pennsylvania. All the hands went up. I know that
six of them are from New York. See that right off the
bat we start with misinformation.
He compared this to a rally against a proposed toxic
waste dump in his hometown, at which 50% of the resi-
dents showed up in force. If there had been 700 people
at the Dimock rally, it would have changed my mind
instantly.
La Tourette is not exactly an EID convert he said
most landowners in the area became converts when
they realized they were sitting on top of one of the
worlds largest hydrocarbon reserves. But despite local
efforts to organize coalitions, the landowners in favor of
development found themselves up against a very well-
organized opposition and reporters who would inter-
view them but not give them ink or air time.
The EID has been fantastic because they were able to
put together a group of generalists who have been able
to take the false stories and debunk them, he said.
La Tourette is part of a group of about nine shock
bloggers who seek out the negative sites and go after
the falsehoods. All we do is ask them questions, and
they back themselves into a corner, he said. Were at
this every day.
For more information, visit Energyindepth.org.
8
industry
PULSE
A recent rally to protect Dimocks drinking water in Dimock,
Pa., had only a handful of participants. (Image courtesy of
Energy In Depth)
1
' %
-
' 7
ral gas expl
i
take hat ob
creation of new jobs, the
our wells
, and a deep res
Whorl;-* onoryy m.NS In1matlon
n
''
S
`
:F
I
t is o
'
i '
'
v,
-
. ,
~
"
c
r
a
'
,
-4-
4
?
lti .
\ - 1, t
y
y
(
l i ^r
Y
' y
hw y . . At .
Ak,
t.'. ..
'
, , : ,
.
k
'
0 6 rem
- .;
6y
w
KAM"
ligation s ly -
Energy plays major role in World history
Hart Energy speaks with Daniel Yergin, chairman and co-founder of IHS Cambridge Energy
Research Associates (CERA).
F
rom his office in the nations capital, and from CERA
headquarters in Cambridge, Massachusetts, Yergin sur-
veys the world its history, geopolitics and storied movers
and shakers, the economy, corporate strategy and the
role energy plays in all of these.
As he says, I like the way energy is involved with every-
thing: the frontiers of exploration, frontiers in technical
innovation, making economies work, geopolitical strategy
I find that continually stimulating.
Whenever a government needs to know more about
energy, Yergin is there. He is a member of the US Secre-
tary of Energy Advisory Board, a board member of the
United States Energy Association, and a member of the
US National Petroleum Council (NPC). He was vice
chair of the much-praised 2007 NPC study, Hard Truths,
and is vice chair of the new NPC study of North Ameri-
can natural gas and oil resources. He also chaired the
US Department of Energys Task Force on Strategic
Energy Research and Development. Yergin currently
chairs the Energy Security Roundtable at the Brookings
Institution, where he is a trustee, and he is a member of
the advisory board of the MIT Energy Initiative.
No stranger to the energy press, Yergin is also a frequent
commentator in national newspapers and cable TV shows,
and is CNBCs global energy expert. He is the author of
the Pulitzer Prize-winning bestseller, The Prize: The Epic
Quest for Oil, Money and Power. His new book, The Quest:
Energy, Security, and the Remaking of the Modern World, was
published in September 2011 and at press time, entered
The New York Times bestseller list at No. 4. It picks up
where The Prize left off, to dissect the past 20 years of
energy history, and it looks to what the future may bring in
new fuel alternatives.
About his new book, Yergin said, The Prize was a chronol-
ogy, but The Quest is about a series of energies and how they
will interact, the future of innovation and whats going to
be the car of the future. You know, Thomas Edison com-
peted with Henry Ford by building an electric carbut by
about 1910, the race was over. Now, its on again.
Hart Energy had an opportunity to sidetrack Mr. Yergin
during his latest book tour. The following is an excerpt
from our interview:
You have always spoken of
how important scenario
planning is to governments
and companies. But could
anyone have foreseen the
Arab Spring scenario?
We (IHS CERA) had a very good call in 2008 about the financial
crisis; the scenarios really worked well back then. We did not have
a scenario for the Arab Spring. But we do know that the top people
running the governments in the region are getting very old and
there is a youth bulge of unemployed and underemployed young
people with expectations. We knew that something combustible
could happen. The real question now is, What happens next?
Doesnt this adversely affect OPEC?
Not yet. Obviously, Libya is a member, but not one of the major
oil exporters. Part of the strategic balance that underpins the
Middle East has been upended and there are a lot of questions
about how the geopolitical scene will work itself out. Irans
nuclear program is still a big shadow overhanging the whole
region as well.
At their last meeting, OPEC members could not agree on much
of anything. Do you feel OPEC is in disarray?
I wonder if that meeting was so overtaken by (political) events
that it wont matterremember that that meeting had several
peculiarities including that the Iranian oil minister who attended
had just been appointed and had no experience. OPEC certainly
has new challenges ahead. The increase in output that is coming
from the US, Brazil, and Canada adds up to being a significant
factor in the world oil market. Countries in the Middle East need
more money for social investment and to aid other countries in
the region. You know, Egypt is going to need a lot of help.
You mentioned all the new oil production that is coming on
stream. Will that really change the geopolitics of oil?
It is striking what has been happening with technology. These
Daniel Yergin, chairman
and co-founder of IHS
Cambridge Energy
Research Associates.
(Image courtesy
of CERA)
Leslie Haines, Editor, Oil and Gas Investor
10
world
VIEW
10-13 WorldView-NOV_10-13 WorldView-NOV 10/21/11 11:35 PM Page 10
We understand the risk of plugging and compaction in an openhole
comp letion. We know how critical dependable sand control is. So we
engineered an innovative new technology that fills that need-literally.
Our exclusive
GeoFORMi41
sand management system uses a shape-
memory polymer that conforms to the borehole-providing greater
protection while boosting the production and longevity of your asset .
Its just another example of how we're constantl y developing fit-for-
purpose solutions desi gned to address your specific challenges. And
how the future of comp letion technology is taking shape quite nicel y.
Leveraging Baker Hughes' patented
GeoFORM system, Justin is part of
the team that is shaping how our
industry approaches sand control
challenges . Learn how this revolutionary
technology can enhance completion
reliability and maximize your recovery.
Find out how at
haL ork, , nF
Q
www.bakerhug hes.com YIN
1011 Oakes IIughes ln; y mt e J . Al l Ri ghts Rete{ved. 31984
BAKER
HUGHES
R 't
7
17
1
w ? e
1
Baker
1
1 r
and we're sha
the future of
{ '
y 4
11
1
4t
sand control.
PIP'
A J F
,3
t r
m s s .
1
. P g neering Manager
12
world
VIEW
innovations that started with the shale plays will continue to be
applied in more plays in the US and soon, all around the world.
New production from tight oil above the shale reflects enormous
change coming from innovation. This was not counted on a
decade ago. It was only in 2008 that the natural gas industry
really woke up to what it had it is a classic case of the way
innovation changes our thinking. This has taken off to a degree
few expected. We dubbed it the shale gale in 2009. I think peo-
ple thought then that we were being too optimistic, but thats
turned out not to be true. If anything, we were too cautious.
How does the European economic crisis play into
your thinking?
This is an unfolding story, but I think the risks of a sovereign
debt crisis or bank crisis are high, and well recognized. The last
time we had a global economic crunch it triggered consolidation
among the majors into super-majors, but I dont think that will
happen this time. In fact, we are seeing just the opposite, a dis-
integration. But the fate of the oil industry and oil prices is very
much tied up with the global economy.
With emphasis on unconventional resources, do you see a rise of
a new kind of super-major?
The shale gale is very recent and as it continues, it will change
the competitiveness among various fuels, and thus, it changes
strategies. We are still in the early days to see how it might change
corporate strategies. You go back four years and the discussion
was all about importing LNG.
In closing, Yergin used the overall theme of his
new book to draw attention to the modern energy
landscape.
The underlying question that runs through all the
chapters of The Quest is this: We now have a $65 trillion
world economy. Will we have the resources required to
keep that growing, what kind of investments will be made
as globalization shows up in growing demand? For the
first time, technical solutions will be carried out on a
global scale. The US is still the heart of the innovation
machine, but that, too, is shifting. We cant take anything
for granted.
Custom solutions for oil and gas production.
Pressure Vacuum Tankers
Mobile Fracturing Units
Winch Trucks
Oilfield Float Trailers
Lubrication Trucks
all for a quote today.
-AL
,
-00
Built for r the Long Haul Built
f e
n
800.598.8552
sales@jjbodies.com
www.jjbodies.com
J&J is located
in the heart of
Marcellus
Shale region.
U0
Quality is the # 1 reason our customers choose FJ
.
TRUCK BODIES
BcTRAILERS"
coo
When you think of petroleum engineering and petroleum geology programs, th
University of Oklahoma's Mewboume College of Earth & Energy might be the fir
that comes to mind, and it should be.
me to the world's first schools of Petroleum Geology and
troleum Engineering
Sins our students on the Devon dual-beam scanning electron
croscope-where the classroom meets the shales
s graduated more petroleum engineers and petroleum geologists
n any otner college in the word, over 10,000 and counting
trusted partner of the oil and gas industry for the past 100 years
d a technology leader for the future
MEWBOURNE
COLLEGE OF EARTH&ENERGY
Ti IL L \ 1\ is KYTY OF OKLAHONIA
There at the beginning. Here for the future.
lot
f Y
'
Thyr..
n
h . :
. ..
... ,..
0
college
Pe
an
Fl
T
he oil and gas industry is under continual pressure to
deliver greater returns at the lowest possible overall
cost. From the perspective of drilling, that goal is real-
ized by delivering the best performance when creating
the well bore to deliver the highest-value well.
In this competitive market, oil companies need to be
recognized as being the best at developing the assets
they have while continually outperforming their peers.
The increasing use and development of performance
studies, such as the Rushmore review where information
is shared among operators, provides greater trans-
parency and accessibility to performance comparisons,
reinforcing the imperative to achieve the highest levels
of operational efficiency.
Another trend within the marketplace that is driving
the pace of improving drilling performance is that there
are fewer opportunities than in previous years for merg-
ers or acquisitions to expand portfolios. Also, companies
that were previously more active in trading assets and
now have fewer opportunities are dedicating more
resources to developing the organizational capabilities
required to work the assets they hold. The productivity
of organizations in this environment must continually
improve and at the same time be capable of maximizing
a projects value while creating savings in capital expen-
diture.
Tackling the problem
Optimizing the drilling operation to deliver the highest
performance and simultaneously develop and deliver
the well design that has the highest value has many
facets. Complexity is further increased with the many
different well construction requirements around the
world.
One essential factor in achieving the required levels of
efficiency is a close working relationship between opera-
tors and service providers and the development of a cul-
ture that encourages collaboration across disciplines
with the free exchange of information.
It has been estimated by some operators that up
to 90% of the hours spent planning and executing
drilling projects are accounted for by the service
company, with the success of many projects being
directly attributable to detail of the upfront plan-
ning and design work. The service company
selected for a job has to be able to deliver all of
the required services to a specific location and has
to understand the drilling process from the same
perspective as the operator. This means the com-
pany has to be able to recognize the relationships
and dependencies among all of the elements of
service delivery so the best recommendations can
be made to the operator. Successfully developing
this level of knowledge and the capability to work
in this manner is only achievable if a collaborative
culture is created within an organization.
Changing the approach
Unfortunately, traditional behaviors often run con-
trary to the development of this capability. When
services are contracted for a single project from
multiple vendors or service companies, they are
Cultural change delivers
drilling performance improvement
Collaboration across disciplines increases efficiency.
Jeremy Greenwood, Halliburton
14
management
REPORT
To continually improve drilling performance, it is essential that people,
processes, and technologies work together efficiently. (Images courtesy
of Halliburton)
14-18 MgtReport-Halliburton_14-18 MgtReport-Halliburton 10/21/11 11:35 PM Page 14
jr
Solving challenges:"
iCem service answers
questions before the job.
Find out how at www.lialliburton.com/icem
HALLIBURTON
,r 9r
Z
IE
a
M
mma
a
y
s
w
. 60
1
5
1
F
I :.
regarded as suppliers of equipment, fluids, and soft-
ware, not as partners. In this situation, the competitive
drivers of the business preclude direct and unrestricted
information sharing and the ability to collaborate
freely. This approach also places the operator in the
role of integrator among competing parties.
To continually improve drilling performance, it
is essential that people, processes, and technologies
work efficiently together. Performance gains cannot
be achieved or maintained without a detailed under-
standing of the drilling challenges, the capability to
identify all of the limitations to performance, and
the ability to design a drilling system that overcomes
these limitations. Obtaining services from the same
service supplier removes the restrictions to free com-
munication among technical experts so the full detail
of the dependencies and interactions throughout the
drilling system can be established.
Given the realities of market segmentation and dif-
ferent market requirements, a service provider also
must have flexibility in the scope and type of its service
offerings if the required level of alignment is to be
achieved. This alignment can present a challenge to
some service companies given the complexity of the
market segmentation and the requirements of different
geomarkets. Only a fully integrated service company is
able to transfer knowledge and capabilities globally and
can best adapt and respond to the divergent needs of
the entire marketplace, a marketplace that includes
early to late technology adopters; national oil compa-
nies; major integrated oil companies; and large,
medium, and small independents.
Achieving performance gains requires not only
setting in place processes and behaviors that encourage
collaboration, but also establishing trust, both techni-
cally and commercially, between the operator and serv-
ice supplier in regard to the recommendations and
services provided. A service provider that understands
the importance of accuracy in modeling and analysis
and continually develops the capabilities of its engineer-
ing staff, including both focused technical skill sets
and the ability to understand and interact with other
engineering disciplines, has an important advantage.
These measures improve the service providers ability
to examine the drilling system and make performance
improvements with a balanced technical and procedural
approach, even when there are no perceived problems.
Many operators now recognize that the lack of incen-
tives or misalignment of performance with traditional
commercial terms comes at a price. Commercial trust is
achieved through setting mutually beneficial perform-
ance measures that create a sense of ownership regard-
ing the overall success of the project. Historically,
commercial terms typically were structured around day
rates, rentals, or bulk purchase of chemicals and offered
little or no incentive to improve performance. However,
the market is steadily changing as performance incen-
tives have become more clearly understood and effective
key performance indicators have become established.
Halliburton understands all of these needs and
has worked to create a culture that delivers drilling
performance improvement by continually developing
organizational effectiveness. Being able to recognize and
understand how to integrate the many discrete workflows
is central to developing this level of organizational effec-
tiveness, and it is an ongoing activity. The organization
that effectively aligns internally and externally with each
customers operating culture helps ensure that objectives
are shared, trust is developed, and continual improve-
ments in drilling performance are fully realized.
16
management
REPORT
Being able to recognize and understand how to integrate
many discrete workflows is central to developing a high level
of organizational effectiveness, which in turn improves the
service providers ability to examine the drilling system and
make performance improvements.
For your next play, whether traditional or shale, Keen Energy
Services delivers high-end drilling value and reduced cycle
times. Keen
'
s fleet of technically advanced drilling rigs and
loyal employees, managed with more than a century of drilling
experience provide customers with maximum wellsite value.
Agility creates value. For more than 20 years, Keen
management has developed the best operating processes and
procedures in the business. Building on that, Keen exceeds
customer expectations, operating efficientl y and safel y to
reduce cycle times.
And with a construction and transportation division , Keen lowers
customers
'
operating costs by providing logistical and site
construction needs in-house. Now that
's value.
Sharpen your edge. Learn more about what Keen can do on our
website or call your Keen sales representative today.
11
KEEN
\ I I B C I
Keen Energy Services , LLC
405.743.2132
www. keenenergyservices.com
info@keenenergyservices.com
f I r
,
l7
1
t a
I y
1'
. Y
K -N
'
I I
1.,1eiS t
56
SUBSEA SYSTEMS
r I l l Ill A`\ l R A
Smarter. Faster. Simpler.
Introducing CameronDC Second Generation.
I-
Cameron Lam-
How do you improve on the proven
technology of CameronDC',
'
the world's
first DC-powered all-electric subsea production control system? Keep
improving. Building on successful operation in the North Sea and
incorporating field intelligence, CameronDC second generation's evolved
technologies enable even greater performance and cost efficiencies.
The keys: enhanced communication, functionality and simplicity. The
results: optimized reliability and environmental friendliness. Superior
condition monitoring. And longer stepouts. For critical subsea
production/processing applications with no hydraulics and favorable
economics, it's time for CameronDC second generation. www.c-a-m.com
RAI S I NG P E R F OR MA N C E . T OGET HER T M
IL I
1001%
r
ENHANCEMENTS & BENEFITS
FLEXIBLE ETHERNET NETWORK
INCREASED FUNCTIONALITY
SIMPLIFIED SYSTEM ARCHITECTURE
IN
M&M
RVa
G
CAMERON
EWEN
for
Oil,
rMw
D
ata aggregation and alarm systems are important to
reduce drilling risk and managing resources. The
ability to monitor streaming data from multiple wells
and present it in a variety of forms has proliferated with
the growth of real-time centers and is changing the way
the industry drills wells.
However, increasingly complex wells and challenging
economics, along with continued advances in technol-
ogy, have many operators wondering if the mountain
of data being collected cannot be put to better use.
Too often the volume of information is overwhelming.
Typically its utility is confined to alarms for anticipated
conditions or after-the-fact investigation. Lost in the
clutter are the subtle and complex precursors to prob-
lems. It is a difficult task to see the data and pick out
trends or associate multiple indicators of an impending
problem.
The industry has taken note. The final report issued
by the National Commission on the BP Deepwater Hori-
zon Oilspill and Offshore Drilling states, It is no longer
acceptable to rely on a system that requires the right
person to be looking at the right data at the right time
and then to understand its significance in spite of simul-
taneous activities and other monitoring responsibilities.
Technology is the answer, suggests the reports
authors, who note, There is no apparent
reason why more sophisticated, automated
alarms and algorithms cannot be built into
the display system to alert the driller and
mudlogger when anomalies arise. These
individuals sit for 12 hours at a time in
front of these displays.
Case-based technology
To reduce risk, improve performance, and
streamline operations at its South Texas
and South Louisiana drilling operations,
Houston-based Swift Energy Co. is running a case-based
expert system in its real-time drilling operations center
(DOC) in Tilden, Texas.
Swift relies on Verdande Technologys DrillEdge sys-
tem, which uses a library of past situations or cases to
identify event precursors and diagnostic indicators and
assign a degree of similarity while drilling.
The information is used to predict such events as
drillpipe twist-off, stuck pipe, and lost circulation. Real-
time prediction is achieved through continuous compar-
ison of the rigs data stream with the case library. Instead
of watching streaming data and reacting to alarms, per-
sonnel in the DOC are presented with information to
better interpret evolving wellbore conditions and miti-
gate problems.
When symptoms that could lead to major events are
recognized, the most relevant case histories and best
practices are retrieved immediately and indicated on a
circular radar display.
Cases enter from the outside perimeter of the screen.
As the correlation with past events increases, the case
moves closer to the center of the screen to convey a rela-
tive degree of importance or criticality.
Diagnostic capabilities derive from the same process.
For instance, changes in standpipe pressure might indi-
cate a drillpipe washout. The information is not predic-
tive, but it provides information that could avoid a
future twist-off.
EPmag.com | November 2011
19
digital
OIL FIELD
Real-time data can be
turned into wellsite answers
Predictive software allows operators to avoid drilling problems before they start.
Tim Sheehy, Verdande Technology
DrillEdge software offers a radar interface that
allows personnel to easily collaborate on multiple
wells. (Images courtesy of Verdande Technology)
19-24 DOF-Verdande_19-24 DOF-Verdande 10/21/11 11:36 PM Page 19
Cha
ng
e Your
Shale Economics
Weatherford's unique portfolio of Tactical Technology
TM
maximizes ROI at every stage of shale-play development
(4
lr_
_
Aorow
__7
?O9 1
-
71
; r ilQlf/A3
0 "
'
:"!! '
: ! r .
!
,;
-
; ay .;
t
Ar^
+L
T
-
'7:
Tactical Technology gives you distinct advantages.
Drilling: Secure Drilling " services, like air drilling and managed-pressure drilling (MPD), improves
14
drilling efficiency; high-performance MWD
,
logging-while-drilling (LWD) and rotary-steerable
systems optimize horizontal well placement.
r
j
Evaluation: Innovative wireline conveyance methods
,
surface logging systems and Weatherford
Laboratories-the only single source for vital reservoir characterization assessments-lead the
way to identif y sweet spots.
Completion:Fracturing services combined with ZoneSelect " openhole completion technology
perform multi
p
le stimulations in a single trip.
Production: All forms of artificial lift ensure the optimal choice to accelerate frac flowback and
reduce hydrocarbon production costs.
Intervention: Rounding out our shale-play portfolio, a broad spectrum of intervention services
maximizes life-of-well recovery and ultimately, optimizes well abandonment.
Discover how Tactical Technology can make your shale play pay big dividends. Visit weatherford.com.
The change will do you good
"
1W
Weatherlord'
weatherford.com
tttttt rr
A
do
t
7R k,
' a
_
.a 1 f Cl I .!::
r
]
`
.
r
te
jy1.
A.
- : t-
-
. +-
'
t'
_
4-
_ t:
digital
OIL FIELD
Integration into the DOC
Before the introduction of this technology, the DOC was collecting data
using various rig sensors. The data were fed to a WITSML server and then
to a data aggregation service in preparation for display. The process func-
tioned as it was designed and worked fine for anticipated problems and
direct issues. But it was not providing the answers to situations that were
more complex and harder to diagnose, such as those requiring input from
multiple parameters and variables.
The software was introduced into the DOC for an initial 30-day trial and
was manned by Verdande Technology personnel. During this trial, drills were
run to better understand system response and identify benefits the technol-
ogy could provide to Swift personnel to improve decision-making.
The primary objective of the trial was to demonstrate the utility and func-
tionality of the DrillEdge system. It was important that Swift personnel have
full confidence in the systems ability to deliver relevant information when
challenging drilling situations arose related to nonproductive time (NPT)-
causing events.
After a successful initial trial, a second phase of testing is under way. Cur-
rent operations are running the system without vendor oversight, which has
reduced the number of people in the DOC and increased the confidence
Swift personnel have in the technology. An ongoing training process pre-
pares engineers to interpret cases and develop new ones as situations war-
rant, with the goal of improving overall system response.
Further efficiency is anticipated with rig personnel receiving alerts based
on cases appearing on the systems radar screen. Enabling the drillers frees
DOC engineers to look at more wells using fewer screens, which allows them
to focus efforts on the situation or well that requires dedicated attention.
Escalation process
A key aspect to the performance of the expert system is response. Once a case
is on the radar, there must be a process in place for resolving the situation.
An escalation and notification protocol has been developed so that Swift
personnel manning the DOC can provide the right information to the rig
when problematic situations are identified and remedial actions (based on
experience and company best practices) are presented by the technology.
The process determines a series of steps that first confirm the data and
then monitor or escalate the situation to a higher degree of concern. When
the case similarity
match is between
50% and 75%, it is
monitored. If the
situation is static or
worsens over a 10-
minute period, it is
escalated.
A case similarity
match exceeding
75% is immedi-
ately escalated to a
hierarchy ranging
Cases on the radar are linked to customer-defined recom-
mended mitigation practices.
19-24 DOF-Verdande_Layout 1 10/23/11 11:06 AM Page 21
W
Weatherford'
Tactical Technology
""
in action:
Drilling time records
shattered at Eagle Ford shale play
Revolution
"
RSS, Weatherford
'
LWD
system and HEL
'
technology slash
average drilling times from 134 to less
than 24 hours
Texas, USA. Our client drilled nine wells-
including the fastest one drilled to date in the
Eagle Ford shale play-using our Revolution
RSS
,
Weatherford LWD system and HEL
hostile-environment logging technology, gamma
ray and MFR" multifrequency resistivity tools.
These technologies helped reduce average drill
times in a particular section from 134 to less
than 24 hours-a savings of nearly five days.
Tactical Technology is saving time and
money in shale plays everywhere
Weatherford is active in the U.S. Eagle Ford,
Haynesville , Barnett and Bakken shale plays
and also in Europe. To find out how we can
increase your ROI at every stage of shale
development , visit weatherford.com.
The change will do you good"
weatherford.com
02011 WedVe,f AJI o7Ys reSonetl.
Ih001p,Yfll ", 11"V aly N10;. !Y t A' / h- t ,, r n : 1 r_hl
v
,
i
22
from the rig personnel to the DOC superintendent and
on-call engineer.
If changes are made that improve the situation, the
information is entered into the log, and monitoring
resumes until the case exits the radar. Otherwise the
cycle continues, and other remedies are applied until
the situation is resolved. DrillEdge captures all of this
information for reference the next time similar condi-
tions occur.
Diagnostic support
A similar process of matching events to problems is
being explored to provide diagnostic support. In this
application, observed events lead to the identification
of a current problem.
For instance, fluctuations in standpipe pressure
exhibit an identifiable fingerprint that can indicate a
washout in the drillstring. The appearance of such a
case on the radar notifies the driller so action can be
taken immediately to prevent a possible twist-off.
The system has been trained to recognize conditions rel-
evant to drillstring washouts, and it will immediately pres-
ent a succession of events. In real time, the pressure loss
and a washout event on the radar screen would ultimately
cross an escalation threshold, and a response would be ini-
tiated in time to prevent a twist-off from occurring.
In addition to drillpipe washouts, this diagnostic capa-
bility is being examined in regard to several other appli-
cations involving downhole tools, including drill bits
and mud motor stalls that lead to failure.
Advancing the process
To avoid drilling problems before they arise, operators
are making greater use of rig data streams. Building on
current infrastructure and industry services, Verdandes
unique system provides advanced detection and deci-
sion-making support. Case-based technology extends
data utility far beyond traditional monitors and alarms
to enable real-time problem prediction and diagnostics
for reduced risk and greater efficiency.
digital
OIL FIELD
19-24 DOF-Verdande_Layout 1 10/23/11 11:07 AM Page 22
The industry-leading solution
for fracture imaging and SRV evaluation
Optimize your reservoir stimulations and increase production with more
reliable microseismic fracture information
0 m0 600 600 600 1000 1200 1.00 0 mo mo coo 000 1000 1Nq 1000
6..100IM ti6lnl
evek I"MW
600 000 1000 INN 1400 0 200 .00 600 100 1000 1300 1.00
ewtny lnl 6s'w01n1
Multi-faceted noise reduction methods enhance the signal to produce an accurate
map of event locations. Left to right: reducing uncertaint ies in event location and
improving quality control. Images are a depth slice trrough a TRI volume.
Optimize acquisition geometry
with forward modeing to improve
data quality at your well
Acquire the industry's only
high sensitivity, 3 component
broadband data from surface
or borehole locations with
Ultra Sense
"
arrays
Achieve more confident fracture
location and SRV evaluation with
TRI elastic wave-equation imaging
Spectraseis
Contact us today
Houston I Calgary I Denver andrew
.poon@spectraseis.com
www.spectraseis.com Tel. (936) 232 8670
s a
E 1y
...
E
...ppp

0 300 600
CAMP S & CAT E RI N
S E RV I C
S E RV I C E S
EQUI PMEN T
R E NT A L
sion Drilli market a fleet of over 360 technically advanced Ian
ir} the U ed States and Canada
,
along with strategic support rilling ri
d
services Inc i directional drilling services
,
well servicing, snubbing, oilfiel
tals
,
worksite accommodation and wastewater treatment. For
n 6 decades
,
Precision has been building strong relationships with
omers by focusing on doing the job safely, on time and on budget.
PRECISION DRILLING CORPORATION
CANADA (TSX:PD)
Suite 800, 525 - 8th Avenue SW Cal
garV
iberta, Canada T2P 1G1 Tel: 403.716.4500
UNITED STATES (NYSE:PDS)
OFF
700, 10350 Richmond Avenue, Houston
,
Texas 77042 Tel: 713-735-6100
WWW.PRECISIONDRILLI NG.COM
i W
,
u.
\
i
PEREOI
MANCE
GH
yALU
E
Pr I
K .
#r
equi pme
.rf
1
E&P and FOR Related Services
4.
l
E
E
4.
E
Dr i l l i ng and Compl et i on
Well Intervention Services
Dr i l l i ng Fluid Services
Wi r el i ne
Logging and Perforat i on Services
'
Mud Logging and Auxi l i ar y Services
Wel l Testing and Product i on Services
4.
4.
4.
4)
b
L
E&P Program Research and Desi
gn
Heavy Oi l Reservoir Development
Directional Dri ll i ng
Cementing
Coring
Format i on and Reservoir Eval uat ion
Providing Integrated Solutions from Geolog ical Research
,
Development Program and Well Desi
gn
to Well Completion.
t E- ma i l : ma r k e t i n g ( a c n l c . cn ; ma r k e t i n g 1. gwdcr a cnpc. com. cn ] www. c nl e .cn t: Tel : 86- 10- 59285691
//AMA
CNL C
1
.
,JAL
wi l V
`
i . .
='
L'ei
1
rl
,
S 1
1
r 1
r r
r
I
dri i i l l i
y
I1 3' 11 11
I
ri y r
J.
p ;l ad'
t
114W
i
\
'
rr
/ 111.
f
l
f
l
1
lnIl x
!`
T
he debate about the effect of manmade noise on
marine life rages on, and seismic contractors question
the validity of stopping operations when whales and dol-
phins are near since those animals often seem interested
in whats going on. Studies have been undertaken to
track whales and try to better understand their behavior,
but this research is stymied by sample size and the sheer
number of variables involved in any animal study.
A new technology has the promise to appease both the
industry and the conservationists who argue on behalf
of marine wildlife. Called Listening to the Deep Ocean
(LIDO), the objective is to implement technological
developments that address the interests of industry while
ensuring the protection of the environmental conditions
of the oceans. It accomplishes this through a simple con-
cept listening to the ocean.
LIDO operates with a set of buoys outfitted with
acoustic sensors. The sensors are constantly live, listening
to the sounds beneath the waves. When sounds are
detected, the buoys collect the information and relay it
to shore or to a vessel or platform.
The guts of the program is a sophisticated software sys-
tem that can, in real time, decipher the data and provide
the depth, location, and species of the animal making
the noise. This data output is put on the Internet where
the public can see it (Listentothedeep.com).
According to Dr. Michel Andre, LIDO project coordi-
nator, the project began by equipping existing observato-
ries that were set up for geohazard detection, but the
offshore industry has always been the target. Now the sys-
tems can be deployed on platforms and seismic vessels.
The idea is not only to measure noise and understand
on a global scale how it is affecting the whales and dol-
phins, he said. It is also to provide the offshore industry
with a solution so that they have a clear image of which
animals are in the vicinity and can mitigate their activities.
Currently many governments require seismic vessels to
have human monitors on board who can stop activity
when whales are sighted. This system is extremely impre-
cise for several reasons the animal has to come near the
surface to be spotted, animals can only be spotted rela-
tively short distances away, and darkness and inclement
weather make spotting animals more difficult (currently
operations are not allowed in these conditions).
Our system gives, in real time, the source and position
of the animal, Andre said. It can operate at night or in
very poor weather conditions. And it can detect sound
sources up to 8 km (5 miles) away, a distance that is con-
sidered safe for sensitive species.
Its also useful in the ongoing study of marine mammal
behavior, he said. We will get a better idea of how ani-
mals react, whether or not they get used to the sound,
and how long they might leave the area, Andre said.
To Andre, the LIDO system can accomplish what is
often so difficult in the E&P industry a win-win for
industry and the environment (Sonsetc.com). I am con-
vinced that this is the key to combining the interests of
the offshore community and
the conservationists, he said.
This is using technology to
make a better world.
The ears of the ocean
A new system promises to vastly improve marine mammal detection
and operational mitigation.
EPmag.com
RHONDA DUEY
Senior Editor
rduey@hartenergy.com
25
exploration
TECHNOLOGY
A sperm whales movements are tracked using the LIDO
acoustic system. (Image courtesy of Dr. Michel Andre)
25-26 ExpCOL-NOV_25-26 ExpCOL-NOV 10/21/11 11:36 PM Page 25
25-26 ExpCOL-NOV_25-26 ExpCOL-NOV 10/21/11 11:36 PM Page 26
Long life and low maintenance that
Vacuum Trailers
Frac Tanks
Vacuum Box
Storage Tank
Fuel Tank
Skid Tank
Mud Tank
Production Tanks
ake your investment work.
erS. That's how we've built them since 1963. Everything in our extensive
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 base
rfeedback. So you knowyour Dragon equipment will be high quality, designed
and cost you less to own over its lifetime. And that's just the equipment.
gives you extra support foryour business
,
such as 24/7 parts and service
ionwide dealer network. Bottom line - going with Dragon equipment
ent in your operation. Because it works foryou now, and keeps working
e future.
Make it ha
0 Copyrig
ht 2010 Modern Group Inc . All ri
g
hts reserved .
0
Quality equipment that makes your operation
m
LL
\k
OIL
d.
EL
need your tanks, trailers and containers to be tough long-term
9 .
. - I 1.
appen.
8-4271 ,mr
I
well
CONSTRUCTION
B
razil hosted its first annual OTC conference the
first week of October 2011. The turnout was fair,
and much like the Houston show, discussions on inno-
vative technology were everywhere.
The technical session, Drilling Operations and
Engineering, held October 4, focused on several topics,
but big news involved recent developments in managed
pressure drilling (MPD) and its potential to impact
future well designs.
With Brazils deepwater potential, MPD is fast becom-
ing the method of choice for offshore exploration wells.
According to Muarizio Arnone, drilling hazard mitiga-
tion specialist, Weatherford, There are a number of
providers bringing managed pressure drilling technology
to the market, and at the end of the day, all of these sys-
tems are achieving positive results.
Arnone compared MPD technology to the
early stages of horizontal drilling. The paral-
lel exists in the fact that this technology
came at a premium during its infancy,
but improved production, increased
safety, and lowered overall drilling costs
proved this method to be worth the
investment. Simply put, MPD saves
time and money and increases safety,
Arnone said.
In conventional drilling, parameters
often are set at surface. Drilling typically pro-
ceeds with little or no change in bottomhole pres-
sure, and any problems that do arise often are mitigated
through slight variations in the original well plan. The
old guys tell us, the well talks to you. Conventionally, we
need to listen, Arnone explained.
The easy wells are gone, Arnone added. Globally,
most new exploration takes place in deep to ultra-deep
water where pressures and temperatures can increase
risk and have higher rates of failure. Newer exploration
wells are predominantly HP/HT, Arnone said. Mock
well plans from the surface do not always apply to these
environments.
HP/HT conditions change the pressure window as
fluids come into contact with higher pressures and tem-
peratures. The official point of view on MPD is that
these systems precisely control the annular pressure pro-
file, ascertain the downhole pressure, and manage the
annular hydraulic pressure profile accordingly.
Because MPD operates in a closed-loop system, it pro-
vides an additional variable beyond pressure and tem-
perature. The application of back-pressure is
applied automatically and can be controlled
to mitigate fluctuations in hydrostatic and
bottomhole conditions.
Arnone discussed Weatherfords Mass
Balance Technique, which uses pri-
mary control algorithms to identify
influxes and losses on a real-time basis,
and it uses a choke at surface to apply
back-pressure to maintain well control
at all times. The companys microflow
control system is based on measuring flow-
in and flow-out of the well. If flow-in and flow-
out diverge, something is wrong, Arnone said.
According to Arnone, the mass balance technique
allows a well to be drilled in the true drilling window.
This may offer a more precise view of drilling condi-
tions compared to a drilling window designed around
predicted values. MPD stands out because of its capac-
ity to precisely monitor changing downhole conditions.
MPD can detect flow out differences of one to
three gallons, and the lowest ever recorded change
was one-quarter of a gallon,
Arnone said. This level of
measurement is not possible
in a conventional
tank system.
Can wells talk? What do they say?
Managed pressure drilling is moving from a high cost, high end feature
to a standard practice that saves time and money when it comes to HP/HT
drilling environments.
EPmag.com
TAYVIS DUNNAHOE
Senior Editor
tdunnahoe@hartenergy.com
27
There
are a number of
providers bringing
managed pressure drilling
technology to the market,
and at the end of the day,
all of these systems
are achieving positive
results.
27-28 WellConstruction-NOV_27-28 WellConstruction-NOV 10/21/11 11:36 PM Page 27
27-28 WellConstruction-NOV_27-28 WellConstruction-NOV 10/21/11 11:36 PM Page 28
Simpl
e,
Reliable,
rel
'
ilk AX
Ariel KBV-6: gas storage facility, southern Mississippi (USA)
More than 35,000 Ariel
compressors have set the
world standard since 1966
Covering a wide range of applications, Ariel reci procating
compressors from 100 to 10,000 BHP are designed and
built for long service life and easy maintenance. Ariel is
there every step of the way offering you the best
customer service in the industry.
World class engineering
Cutting-edge research and development center
State-of-the-art American manufacturing
Responsive global aftermarket network
Experienced field service group
24/7/365 support through the Ariel Response Center
Free classes at the Ariel Training Center
Ari el KBZ-4
WORLD STANDARD COMPRESSORS
www.arielcorp.com
Ariel Corporation 35 Blackjack Road Ext. Mount Vernon, OH 43050
I sm
4.7
yt
Alt / $ ' 1.
T+
i
`/a
_"
20
444
I T'S"'
:r
; ,
^
PPI
!_ I
.
,v
a
t
y
v-
J 4
f
'
' '
c
am
`
_
"t
i
29
T
he vision of subsea factories on seabeds around the
world is one that is slowly becoming reality. Although
the jigsaw of competing technologies needed to give an
operator a field development toolbox it can work with is
complicated, it is now increasingly achievable.
The importance of having such options at their dis-
posal whether for subsea separation, boosting, or com-
pression clearly is recognized by all the industrys
major players.
The rewards can be dramatic when the business case
is right. It is generally accepted that boosted wet tree
developments can deliver between 5% and 20% higher
recovery rates than dry tree developments, for example.
Statoil has made no secret of its goals for advancing
subsea processing technologies to improve recovery
from existing fields. On its Gullfaks South field, the
company has worked with Framo Engineering since
2008 developing technology for compressing wet gas on
the seabed. The fields current recovery rate is already
62%, and the combination of subsea compression and
conventional low-pressure production in later phases
could lift the total recovery rate to an outstanding 74%,
according to Statoil, which would increase production
by 106 Bcf (3 Bcm) of gas an additional 6%.
The standard industry solution has been to supply
compression from a platform or onshore, but the closer
compression is placed to a well, the more gas can be
extracted. Thats why companies like Statoil want to place
the compressor on the seabed nearer to those wells.
At the recent OTC Brasil show in Rio de Janeiro, the
company stressed in a presentation that it sees subsea
processing very much as an enabling technology for
both greenfield projects (mainly those in northern, Arc-
tic, and deepwater areas) and brownfield developments
that may otherwise be abandoned without being
exploited to the maximum. New technology develop-
ment remains the key to opening the door to innovative
ways of applying subsea processing.
According to Simon Davies, Statoil project leader for
subsea technology and operations, the vision of a sub-
sea factory could drive the application of more sophis-
ticated gas processing on the seabed (gas sweetening
and gas dehydration). Longer and more remote step-
outs are driving interest in developing local, potentially
renewable power generation concepts, he added.
Pumping and compression technology also will con-
tinue to evolve, Davies said, with more robust and sim-
plified systems becoming available that are capable of
greater pressure boost while handling liquids without
the need for upstream scrubbing. Separation systems
will become more sophisticated, and new materials
including nanotechnology also will have an increasing
role in tomorrows systems.
As the industry finds and develops oil and gas reserves
in deeper, more remote, and harsher environments, the
technological challenges, qualification requirements,
and technical risks of deploying subsea processing will
increase, Davies said.
However, the business upsides will also increase, and
there will almost certainly be areas where
subsea processing becomes an
enabling technology, without
which fields cannot be profitably
developed, he concluded.
production
OPTIMIZATION
From surface to seafloor
Operators are using subsea factories to move processing from topsides to
the seabed for greenfield and brownfield projects.
EPmag.com
MARK THOMAS
International Editor
mthomas@hartenergy.com
An artists rendering of the Snorre, Vigdis, and Tordis field oper-
ations. (Image courtesy of Statoil)
29 PRODcol-NOV_29 PRODcol-NOV 10/21/11 11:37 PM Page 29
COVER STORY:
INTELLIGENT OPERATIONS
30
A
few years ago, the concept of intelligent operations
was confined to assorted software programs and
pieces of hardware, the most significant of which were
remotely controlled subsurface sliding sleeves that
allowed greater production control.
From the recognition that installing pieces of equip-
ment could improve operations, the industry has moved
to embrace the concepts of intelligent energy (IE) and
integrated operations (IO). Today, these concepts are
being applied much more broadly than ever before
under the umbrella of the digital oil field (DOF).
Building on success
Pieter Kapteijn, director, Corporate Technology and
Innovation, Maersk Oil, believes success of early pro-
grams set the stage for DOF development and validation.
Application of intelligent solutions has finally proved
and confirmed the value we always knew was there, he
said. You fundamentally change the risk profile of oil
and gas operations. The subsurface gains from improved
recovery and more cost-effective development dwarf the
gains from a more effective surface operation.
As evidence of how far the industry has come, Kapteijn
pointed out, Statoil, Shell, Chevron, and Saudi Aramco
are designing in the intelligence from the outset. For
these companies, he said, this is a strategic plan.
Julian Pickering, company director, Digital Oilfield
Solutions Ltd., considers the spread of DOF technolo-
gies to national oil companies (NOCs) a notable devel-
opment. NOCs are now jumping into DOF and are
actively pursuing it, he said. Were going up an expo-
nential curve in terms of uptake.
Steve Roberts, vice president of Field of the Future
Flagship Program Subsurface Technology at BP, pointed
to some of his companys milestones as evidence that
the DOF is delivering value for operators. Weve devel-
oped solutions for remote monitoring and production
performance management for over 600 of what BP con-
siders key high-rate wells. A sense of scale in terms of the
Transformation
to a digital age
As oil and gas resources become more difficult to find and produce,
the industry has turned its focus to technologies that allow better real-time
decision-making, more automation, and improved collaboration.
By Judy Murray, Editor
30-39 COVERstory-NOV_Layout 1 10/21/11 11:51 PM Page 30
31 31
data is that weve got more than 2 million data tags now
covered by Field of the Future solutions.
Some of those solutions address production optimiza-
tion, minimizing riser slugging, and equipment monitor-
ing. We have thousands of pieces of equipment tied to
Field of the Future solutions, Roberts said.
According to Derek Mathieson, president of Products
and Technology at Baker Hughes, IO is starting to under-
pin a much broader array of products and services in the
marketplace. I think the real beachhead was made in the
drilling operations world, Mathieson said, where we
really started to look at real-time technologies and how
that changed the face of our interaction both on the
operating and service side.
What is surprising, he said, is a lot of the platforms
developed only two or three years ago already are well
past their operating capacity. There are some new prod-
uct lines moving into this landscape today just based on
the significant progress thats been made in the drilling
world, he said.
As an industry, the biggest accomplishment has prob-
ably been getting away from the need to have hard and
fast technical requirements for individual systems. We
have more flexibility, and weve developed open stan-
dards as a group. Standards like WITSML have really
become the baseline to help some of the digital enable-
ment we see in the marketplace today, he said.
Satish Pai, executive vice president, Operations,
Schlumberger, believes a real step-change took place
with the ability to listen to the well being drilled,
enabled through improvements in the gathering, pro-
cessing, and utilization of all available data generated
during operations.
Advances in drilling and production technologies
have enabled higher efficiency wellbores; however, these
advances also have negatively impacted well planning.
Fewer wells spaced much farther apart means less offset
well information critical for predrill risk identification at
a time when it is needed most, Pai explained, noting
that for service companies such as Schlumberger, using
real-time data has become critical in updating predrill
models during the well construction process to predict
and mitigate potential hazards while executing perform-
ance management initiatives.
Moving from parts and pieces to field deployments
has greatly changed the DOF according to Duncan
Junor, senior director of Digital Asset, Halliburton.
Technology is only part of it, he explained. In the
past few years there has been a lot more discussion
about integrated operations.
For Halliburton, that means a focus on Digital Asset
strategy and developing integrated workflows. We use
them to drive efficiency internally, Junor said. We are
looking for the gaps between service lines and processes
to help customers and ourselves to be more efficient.
For Mike Hauser, global i-field manager based in
Chevron Energy Technology Co., one of the biggest
achievements for the DOF is tangible progress in the
area of predictive analytics and diagnostics being able
to monitor, model, and analyze alerts to normal operat-
ing conditions is clearly transforming condition-based
management of our key assets, starting with machinery.
Because signal analyses can be so far in advance of a fail-
ure, the industry is redefining real time, he said.
As the oil and gas industry wraps up the first decade of
integrated operations, he said, There has been tremen-
COVER STORY:
This Schlumberger operation support center in Tyumen, Russia, is enabling new levels of consistency in field operations. The amount of real-
time data flowing through such centers at Schlumberger has more than tripled over the past three years. (Image courtesy of Schlumberger)
32
dous headway in areas like real-time data surveillance,
access, and higher end collaboration that goes beyond
videoconferenceing into connecting the right people
with the right information at the right time so the right
experts are weighing in on decisions regardless of their
geographic location and function or discipline.
For Baker Hughes, progress in collaboration has been
dramatic. Going back only two and a half years, Math-
ieson said, we had three real-time drilling centers
around the world. We now have 25, and all slightly dif-
ferent sizes and shapes. It really is something thats now
fundamentally part of the way that we run our business.
Collaboration and remote monitoring are the corner-
stones of IO in the High North, a joint industry project
(JIP) being managed by Project Manager Frdric Ver-
helst, DNV. A primary goal of the JIP is to carry out
monitoring onshore so informed decisions can be made
for offshore operations.
There are fewer positions offshore, Verhelst said,
which is a driver for better HSE performance. Compa-
nies have to rely much more on the offshore/onshore
link being available all of the time. Now that the concept
of collaboration centers has gained ground, the goal has
changed to creating more specialized onshore centers.
Samit Sengupta, managing director, Geologix Ltd.,
said one of the most significant things about DOF appli-
cation is the integration of real-time data with informa-
tion gathered on site by experienced personnel.
A lot of people on the rig are making observations,
and all of those kinds of observations traditionally would
have been included in a report that was completely out-
side the real-time information coming in, he said. It
was not integrated in the
real-time system.
Within the DOF, Sengupta
explained, Observations are
being communicated in an
on-time basis. Instead of
being sent as a report, infor-
mation is being sent using
the same system as data to recipients. That contextualizes
all of the data being communicated.
Now, observations made by workers can be placed in
context, creating a richer set of information that
improves the value for the operator because it leads to
better decision-making.
The industry clearly has made great strides in imple-
menting the DOF, and much more progress lies ahead
for the early movers. While some companies have made
enormous headway, however, there are many operating
companies (many of them on the smaller side) that have
not yet embraced IO. For those companies, Pickering
says there is no time like the present.
Now, were in a position that smaller companies can
determine the true value to determine if application of
the DOF is worth the investment.
Jay Crotts, vice president of IT services at Shell, agrees.
Having planning analysis is very useful, he said, but
whats more useful is to start small with digital oil field
solutions and see incremental success and not try to solve
the most complex problems to begin with. The impor-
tant thing is to test small ideas and fail fast. Failing fast is
fine, he said, because it allows companies to quickly
determine the most likely applications for success.
Crotts speaks from personal experience. From our
smart field to our smart well operations to even our
smart manufacturing, we follow an innovation process
where we have ideas and we do proof of concepts. Not
all of them are successful. We back the things that look
as if they will be successful.
This type of prototype environment works well for
Shell according to Crotts. You can and should do a lot
COVER STORY:
Seeing fracture attributes
such as height, width, and
length and calculating stimu-
lated reservoir volume in real
time provide insight into how
the formation is responding to
stimulation treatment, which
helps reduce uncertainty and
improve effectiveness. (Image
courtesy of Halliburton)
More Locations. More Services. More Peace
of
Mind.
Nobod
y
delivers All Around Reliability'" to the f i el d like
R360 Environmental Solutions.
+ Total Wellsite Recycling + Oil Reclamation + Onshore and Offshore Logistics
+ Land Treatment + Tank Bot tom Disposal + Closed Loop Systems
+ Land Waste Disposal + Transportation + Waste Collection
+ Washouts + Production Water Disposal
B
y
integrating leading names in oilfield waste management ,
R360 Environmental Solutions
can now offer superior access to strateg ically located faci l i ti es nationwide. Because when it
comes to environmental solutions , you need a provider you can count on .
Learn more at www.r360es.com.
ENVIRONMENTAL
SOLUTI ONS
1 . 4
r
r
+
1
I
,
Yht
?
r I
MF
f F
`
+ ,
( C
?'y'.'
'
4
?'
rM?"`, <:1?
?
`
?'rat ars
//??
?
.
"
?
j
T
' ?
?
e
i
S
7
?5
Amt,
of analysis, he said, but eventually you have to try it to
see if it is going to pay out.
Pickering agrees. Now there is a squeeze on finances,
and on that basis, you need a much stronger business
model that addresses why the company should be doing
this, he said.
Taking on challenges
According to Maersks Kapteijn, one of the issues the
industry has to contend with is a myopic approach to
field development in some cases.
We have assets that are producing for decades, he
said, but a lot of the thinking and decisions in develop-
ment projects focus on the short term. The people who
make decisions based on lifecycle considerations will not
see the results of those decisions.
Another difficulty, according to Kapteijn, is the oil
and gas industry, despite spending billions on research,
still faces a major challenge when it comes to integra-
tion. Nearly 80% of work is contracted out from opera-
tors to other companies, and resources belonging to
subcontractors could help move things forward more
rapidly as could resources from universities and other
industries. We do not get as much value out of the peo-
ple we work with as we could, he said.
One of the challenges being addressed at BP is imple-
menting DOF practices across the company and truly
changing the way employees work. Theres more to
do on deployment, Roberts said. It isnt just about
deploying technology; its changing working practice
on the ground.
Technology is the easy part, Junor said. Getting the
change management and
getting multidiscipline
teams to work together is
really where the chal-
lenge lies.
BP has an internal team working on this issue. As
we review current solutions and how they are deployed,
one of the things we want to address going forward is
the fact that some areas of the company are taking more
advantage of the solutions than others. One of the
things BP did to address the challenge of deploying at
scale was look at work processes. Support mechanisms
have to go with deployment, otherwise it would tend to
die on the vine, Roberts said.
According to Pickering, There sometimes isnt a
proper match with the existing work processes within the
company, or people just havent bought into the technol-
ogy. Before you rush out and start building collaboration
centers, you need to clearly understand how people do
their day-to-day jobs, how those jobs are going to be trans-
posed into this new collaborative environment, how peo-
ple are going to work remotely because theyre not
physically on the site, and how such a center could
improve work process.
Hauser agrees. DOF gives us the ability to shorten the
learning curve for our early-career employees by giving
them access to expert mentoring and decision support.
This strengthens our organizational capability to man-
age global development, deployment, and support of
solutions. What will be critically important is how we uti-
lize our limited expert resources while developing new
organizational capability to sustain our future.
Deployment of intelligent solutions across an enter-
prise is not so much a technology challenge, as much as
a change management challenge, according to Pai, who
pointed to the adoption of drilling automation tech-
nologies as an example. A majority of the drilling com-
34
COVER STORY:
Shells Perdido field in the
Gulf of Mexico was born
smart. Before plans were
made for development, the
field was screened to evalu-
ate where smart field tech-
nology could be applied
best, and field-specific solu-
tions became part of the
development plan, which
looked beyond the objective
of putting the field onstream.
(Image courtesy of Shell)
SPE is what you
do.

0000000
I I 1
094
1
.....
4
S.
.
19006
D
.
S
.
.
When you join SPE, you can immediatel
y
begin to focus in on your
areas of interest and expertise through 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.
Join
our worldwide membership today at www.spe.org/join.
Society of Petroleum Engineers
www.spe.org
00
-
40k
'
WX
*

IM
00**WWW
as
04
I LI
Alt .
Fw
'
W
"V'
36
COVER STORY:
munity are reluctant to utilize automation enabled by
real-time data, he said, noting, overcoming this resist-
ance will be key, recognizing there must be balance
between automation and human control.
Success will be determined by the implementation of
a top-down directive that establishes an industrialization
process with sound business models, standards, training,
and clear objectives. Without such a formalized
approach, any implementation is sure to endure false
starts, employee confusion, management frustration,
and ultimately a short project life span.
Hauser added that the evolution over the past decade
from concepts lauded by DOF Evangel-
ists has matured to real value-adding
solutions. The key will be how we focus
our efforts to successfully impact our
business at scale across our global oper-
ating organizations, he said.
One of the impediments of execut-
ing such initiatives is limited person-
nel resources, which is complicated by
the Big Crew Change a situation Pai
views as much an opportunity as a
challenge. Adoption of high-value
intelligent solutions can result in
higher personnel efficiency, Pai said,
as Schlumberger has seen through
the centralization of our domain
expertise, providing oversight across
a broader range of operations.
The Big Crew Change is particularly
challenging, according to Mathieson,
because it brings a very different way
of thinking into the workplace.
We live in a world where digital
immigrants, people who are still
learning what the baselines are and
how to use the new tools, are being
forced to move from one way of work-
ing to another. The new generation of
workers, digital natives, are used to
the social engineering tools, but they
approach work in a completely differ-
ent way. These two groups have to
work together to effect a rapid transfer
of knowledge from skilled workers
who are retiring to younger workers
with considerably less experience.
As part of the real crew change
thats going on just now, there are
some fundamentally different behav-
ior sets that were looking at in the
company, and for companies like
Baker Hughes, and others that have
been around for the best part of 100
years, the legacy training systems, the
way that we look at wellsite readiness,
r5V'? F a
y
?
Y ?
a
'
J n{l
i r
a
.r
a ' Tl
?
p
'
I
`
i
ILL
S Y'P'
?
.i
?

F
'
M
.
r
y:
,ar
t
:
r r
;
`
TUFF
d
o
,
x
r+'t . .iL?t
ly
7
37
needs to be part of the digital modernization process as
we train a new generation of people to run operations.
The battle were starting to face now is that these new
tools are working and really showing some differential
performance, but getting from the 20% to the 80% is
still a big deal. Its forcing some real transformational
ways of looking across the whole business and creating
an extensive list of things we need to take care of to
move completely to a new way of working. And thats
tough. For many big companies, it presents a pretty high
commercial hurdle to upgrade legacy best practices.
For Verhelst and IO in the High North, one of the
focuses today is on data and information models and
collecting information to allow workflows across organi-
zational boundaries. Both drilling and production work-
flows are being examined, he said.
Production workflows are centered around a produc-
tion support center created two and a half years ago
in Stavanger, Verhelst said. Though the multi-asset
support center can support asset teams in resolving
production challenges, he said, They need to be able to
hook into all of the data systems available, which at the
moment is very diverse. A very large project is targeting
creating a common interface that will allow a standard-
ized way to tap into those.
Resources are being allocated now on prototyping and
demonstrating workflows around the Production Sup-
port Center and how external centers can be used in
decision-making, he said.
Sengupta too sees workflows as a challenge. Unless
your workflow works with the technology, you dont
derive the full benefit of the technology, he explained.
When enormous volumes of data are collected and dis-
tributed to everyone in real time, information overload
occurs, and the decision-making process is compro-
mised. This means the specialist is not working at the
best of his or her capacity.
Defining opportunities
Oilfield virtualization is maturing today, Hauser said,
COVER STORY:
Cable, Inc., founded in Sterling, CO,
has earned a reputation for providing reliable oilfield services in the Rocky
Mountain region. Since 1949
,
our skilled crews have helped many exploration & production companies unlock the
full potential of their oil & gas wells. Call our local experienced team to help you get the most out of your well.
t
?
Wellheads Frac Tree Rentals
Slickline/Wireline Pressure Testing Hydro-testing
and predictive analytics are being applied to new areas.
The next horizon will be in the application of robotics
and the intriguing promise of nanotechnology. The key
to moving these technologies forward, he said, is cross-
industry sharing.
Pai agrees that technology transfer from other indus-
tries is one of the unexploited opportunities for the
DOF. Schlumberger, a proponent of cross-industry col-
laboration, has a history of building on best practices
from the automotive and aerospace industries to drive
technology functionality and reliability, according to Pai.
The aerospace industry is by far the leader of
onboard monitoring systems that provide continuous
diagnostic data streams for use in preventative mainte-
nance and intervention processes, he said. Schlum-
berger engineering personnel interface routinely
with aircraft manufacturers to further advances
on reliability systems. Additionally, our relationships
within the automotive industry
provide the opportunity to share
manufacturing discussions for
further ruggedizing high-temper-
ature electronics/sensors.
Another aspect of the DOF that
is showing a marked improve-
ment is the uptake of data.
Once the standards are estab-
lished, Pickering said, its a free
market for everybody. Standards
make room for more and smaller
players.
As the Deputy Chairman of
WITSML, Pickering works with
Energistics, an organization that
facilitates global noncompetitive
vendor neutral infrastructure for collaboration aimed
at developing and adopting open data exchange stan-
dards. Were building up to offering accredited courses
in WITSML, Pickering said. The first accredited courses
should be available by 1Q 2012.
The big drive for the course is to improve uptake, he
explained. Its good that were starting to develop pro-
fessionalism in different aspects of the DOF because its
no longer a cottage industry. Its becoming fundamental
to the way companies are working.
Meanwhile, drilling and production automation
are increasing dramatically. This aspect of the DOF,
one Mathieson described as really blue sky a couple
of years ago, is now getting significant attention.
Some of the biggest players on the operating side
are seriously looking at how to automate certain por-
tions of the well construction and production business,
he said. Theyre looking at critical decision systems,
reducing operating footprint and step changes in effi-
ciency with the technologies emerging today. Theres
growing momentum in this space and the first signs of
practical applications emerging.
According to Sangupta, part of the impetus for this
is the lack of human resources. Automation is much
more valuable to people who are resource constrained,
he said. Were always trying to automate everything.
What we need to do is start automating processes far
more than weve done, Pickering said. Providers of
automation are pushing. What we havent got within the
industry is the pull. We need the end customers to start
identifying the needs for automation, and once the
demand is there, it becomes easier for suppliers to sup-
ply the appropriate systems.
I dont think we will ever achieve a completely auto-
mated field, Verhelst said, but
one of the things we will achieve
is automating some of the very
predictive functions so people
can focus on anomalies and
problems.
The industry is investing heav-
ily in DOF technologies, and that
trend will continue strongly in
the coming years.
Youre going to see an awful lot
more breadth of real-time opera-
tions, Junor said. The key will be
applying the model, measure,
optimize approach to make
those decisions and deliver scala-
ble solutions. I think everybody is
recognizing that real time is an important way of closing
the loop. You can do as much modeling as you like, but
unless you can measure in real time and then optimize
with a multidiscipline team, youre not able to make bet-
ter decisions in the right timeframe to add a great deal of
value. Integrated workflows understanding the gaps,
bringing multidisciplinary teams together, and helping
analyze and make decision-making more effective are
becoming more recognized as a business practice rather
than a futuristic goal.
According to Kapteijn, the next step for the DOF is to
apply these concepts in the design phase. Weve only
uncovered about 30% of the real value of these con-
cepts, he said. The prize at the end of the rainbow
lies in the subsurface. Thats where the value is. And
IO is what is going to get us there.
38
COVER STORY:
Integrated workflows
understanding the gaps,
bringing multidisciplinary teams
together, and helping analyze
and make decision-making
more effective are becoming
more recognized as a
business practice rather than
a futuristic goal.
Duncan Junor, Halliburton
DEVELOPING UNCONVENTIONAL GAS
Participating
A
t Hart Energy we anticipated the need for a
conference that presents the most up-to-date
information on the Eagle Ford shale play as it became
the hottest unconventional gas play in the country.
To all the attendees, sponsors and exhibitors who have
hel ped shape this conference, we say
"
thank
you
"
for
your partici pation and support .
PRESENTED BY:
HART ENERGY
HOSTED BY:
Please make plans to join us in 2012 as we explore
intelli gence about the move into other formations,
such as chalk and sandstone, as the Eagle Ford
p
lay
continues its growth.
The 3rd Annual DUG Eagle Ford Conference and
Exhibition will take place on October 14 - 16, 2012
at the Henry B. Gonzalez Convention Center in
San Antonio
,
Texas.
EP
Invesior MIDSTREAM
www.dugeagleford.com
E
A
a
9
VA,
If
i,y
.
/
/;
?
!;
1
;
c
/
,
`
?
.
-
,
L (
D
iv
Z
f.
A
F
I?
40
IMPROVING
OPERATING EFFICIENCY
I
n many of todays most challenging land drilling appli-
cations, the lower hydrostatic head and weight on bit
achieved with air drilling methods are key to reducing
time and costs, and a low hydrostatic drilling fluid can
improve drilling efficiency.
These versatile systems improve penetration rates; mini-
mize problems such as lost circulation and differential
sticking; and cut fluid, bit, and other expenses. Air
drilling also drills a straighter hole. In vertical sections,
this technique reduces deviation and doglegs that speed
drilling and enhances drilling accuracy for well curves
and laterals.
Well construction optimization requires careful match-
ing of the technology to the application. Energized sys-
tems, including dry air, gas, mist, foam, and gasified fluids,
are leveraged with a spectrum of chemicals and tools. For
instance, corrosion inhibitors and surfactants enable air
drilling through water influxes, and advances in
percussion tool designs and materials have
resulted in greater efficiency and durability.
These engineered systems provide unique
performance characteristics in a wide range
of applications, including formations that are
extremely hard or consolidated, produce water,
have lost circulation problems, or are sensitive
to hydrostatic pressure.
Three examples in Texas illustrate how
advancements are enabling familiar air
drilling technologies to take on new extremes.
Canyon sands ROP
Slow penetration rates and hole deviation when
drilling low-pressure, high-volume Canyon
sands gas wells in West Texas have resulted in
a change to underbalanced drilling (UBD)
using downhole hammer bits.
The shift to air drilling was tracked in more
than 50 wells where its use cut time from spud
to total depth (TD) by approximately 30%, yield-
ing a savings of about US $25,000 per well. At the same
time, hammer drilling minimized borehole deviation to
less than 4% without compromising penetration rates.
A conventional well plan in the hard dry rock set
8
5
8-in. casing in a 12
1
4-in. surface hole, then drilled a
7
7
8-in. hole to TD. However, drilling with conventional
muds and roller cone or PDC bits in the production
section resulted in low penetration rates, high weights
on bit, and deviation problems.
To improve ROP, underbalanced hammer drilling was
used to drill the 7
7
8-in. hole.
Conventional bits and a straight gas or a mist-foam
system (due to water influx) were used until deviation
problems occurred, followed by hammer tools using air
or membrane-generated nitrogen to finish the drilling.
The longest hammer-bit run was 2,133 m (6,999 ft) in
66 hours, drilling at 32 m (106 ft)/hr; the shortest run was
198 m (650 ft) in 9.5 hours, drilling at 21 m (68 ft)/hr.
During one period in which 29 wells were drilled, 20
required only one trip for the production section. Of
Deepak Gala, Weatherford
Underbalanced hammer drilling improved ROP in Canyon sands gas wells in
West Texas. While drilling 29 of the wells, 20 required only one trip for the pro-
duction section. Six of the remaining nine wells were drilled at a lower cost per
foot and in fewer days. (Images courtesy of Weatherford International)
Air drilling improves efficiency
in challenging well bores
Advances in energized systems, chemicals, and bit technology
are providing efficiency and cost savings.
40-43 OpEff-Weatherford_Layout 1 10/23/11 1:32 PM Page 40
40-43 OpEff-Weatherford_40-43 OpEff-Weatherford 10/21/11 11:37 PM Page 41
Shale
Solutions.
Cudd Energy Services (CES) has the experience and reputation for providing
integrated services in today's oil and gas shale plays. Our experienced engineers
and staff will develop a plan, desi gn the solution and mobilize the resources to
help you release the full potential of your oil and gas wells .
To learn more
,
call your local CES representative today at +1 . 832.295 .5555.
Proven Experience. Trusted Results.
www.cudd.com
-
t i
o F
i
1
t'
Y c
?.
5
z
_
e
r r
IL
-
IjCft-I
42
IMPROVING
the remaining nine wells, six were
drilled at a lower cost per foot and in
fewer days than those drilled with
conventional drilling techniques.
The additional costs of the air com-
pressors, high-pressure boosters, and
diesel fuel, as well as the diamond-
insert hammer bit, were offset by
mud cost savings and the reduced
number of conventional bits, stabi-
lization, and mud motor costs.
Barnett shale deviation
Air-hammer drilling in the Central Texas Barnett shale
eliminated 12 to 15 days of drilling time by minimizing
doglegs and reducing wellbore deviation by 50%. The
significant reduction in deviation allowed the 8
3
4-in. hole
section to be drilled with a single bit run. Total drilling
cost for the well was cut in half compared to conven-
tional drilling methods.
Deviation and doglegs are problematic to the drilling
curves and laterals typically designed in the Barnett
shale. Hammer drilling places a light weight on the bit
typically just enough to keep the face of the bit in con-
tact with the formation. With less weight, the bit drills a
much straighter vertical hole.
Barnett production is highly dependent on accurately
placed wellbore curve and lateral sections.
Drilling a high-quality vertical borehole with
an air hammer system enhances drilling
of the deeper well geometry.
A new stabilized air hammer tech-
nology used in the vertical section
of the well was key to the drilling
performance and limiting the
wellbore deviation and dogleg
severity. The bit minimized hole
deviation while still achieving an
ROP of 15 m (50 ft)/hr.
Travis Peak strength
The Travis Peak formation in East
Texas is one of the hardest and
most abrasive in the US, with
unconfined compressive strength
often in excess of 50,000 psia.
In three vertical wells, UBD using a combination
of hammer and tricone bits succeeded in more than
doubling ROP compared to using a freshwater drilling
system.
The HP/HT wells were in excess of 4,877 m (16,000
ft) total vertical depth. Surface and intermediate sec-
tions were drilled conventionally, while the 8
1
2-in. hole
below 2,987 m (9,800 ft) was drilled underbalanced with
hammer and tricone bits.
To improve ROP, the operator initially changed to
freshwater from a conventional mud system. Further
enhancement was sought using low-density single-phase
gas and mist-foam systems.
Penetration rates also were enhanced with downhole
hammers. Flat-bottomed with no valves or blow tubes,
the diamond-enhanced bits are cycled at 1,600 to
1,800 beats per minute to drill the rock rapidly. The
percussion bits also have a much longer life than
conventional bits, resulting in fewer trips and lower
bit expenses.
In addition to the hard, abrasive formation, the air
drilling system had to address issues with water influxes
common in the Travis Peak as well as noncommercial
associated gas. Careful engineering of the system design,
contingency planning, and rig crew training helped mit-
igate the risks.
Drilling the three wells involved compressed air or
membrane-generated nitrogen injection rates ranging
from 2,800 scf/m to 3,400 scf/m, and the liquid rates
during mist-foam drilling were 14 gal/m to 16 gal/m
(53 lb/m to 61 lb/m). The nitrogen drilling system
provided a safe and economical means of gas drilling
in the hydrocarbon-producing section of the formation.
The first well section was drilled with three
hammer bits and one tricone bit and
averaged 13 m/h (42 ft/h) including
connection times. Instantaneous
ROP in the range of 107 m/h
(350 ft/h) was observed with
the hammer bits. Penetration
rates while drilling underbal-
anced were significantly
greater than the offset records,
with 725 m (2,378 ft) drilled in
55.5 hours.
In the second well, 838 m
(2,750 ft) were drilled in 58.75
hours using three hammer bits
and one tricone bit. The third
well used four hammer bits and
three tricone bits to drill 917 m
(3,010 ft) in 61.7 hours.
In three vertical wells, UBD using a combi-
nation of hammer and tricone bits suc-
ceeded in more than doubling ROP
compared to using a freshwater drilling
system.
Air-hammer drilling using a hammer bit
(shown) eliminated 12 to 15 days of drilling
time in the Barnett shale.
MARCELLUS
M I D S T R E A M
C O N F E R E N C E & E X H I B I T I 0 N
SAVE THE
DATE
MARCH 19-21
,
2012
DAVID L. LAWRENCE CONVENTION CENTER PITTSBURGH, PA
MARCELLUS MIDSTREAM CONFERENCE & EXHIBITION IS GROWING!
Just as the Marcellus play continues to grow, so does the Marcellus Midstream Conference & Exhibition. The
combined two-year attendance total surpassed two thousand individuals and 130 exhibiting companies.
With shale-gas production booming, the race is on to build the needed infrastructure to support production.
Producers, investors and capital providers like what they see. The ability to separate high-risk, high-reward,
hi
g
h-marg in E&P activity from the less risky, (but far more predictable) midstream business is attracting new capital.
The 3rd Annual Marcellus Midstream Conference & Exhibition will focus on opportunities surrounding the
build-out of infrastructure needed in petroleum-producing regions. As excitement continues to build in the
midstream sector, Hart Energy will provide topica l, industry-leading speakers and presentations to keep our
audience informed.
The dates for 2012 are March 19 - 21 and the conference returns to the David L. Lawrence Conference Center.
Plan today to attend and exhibit.
marcellusmidstream. com
PRESENTED BY: HOSTED BY:
u
H A R T E N E R G Y MIDSTREAM Investor
gas
o
enter
al
00 r:
44
IMPROVING
E
conomic success in shale oil plays depends on an
operators ability to evaluate acreage rapidly, deter-
mine how much oil is in place, identify the key produc-
tion drivers, design proper completions, and predict
how much a typical well could produce over time and at
what cost.
Most of the nations shale plays to date, however, have
been developed by smaller operators, where professionals
on staff often lack the time, expertise, or tools necessary
to carry out this type of work, especially under urgent
internal and external deadlines. New players face a
daunting learning curve. Even experienced operators
find they only have sufficient infrastructure and financial
resources to develop a portion of their unconventional
acreage. Ultimately, the strategic decision to develop or to
divest a specific lease depends on the quality of the tech-
nical evaluation.
To supplement limited internal expertise and ensure
maximum return on unconventional oil investments,
some independent operators seek to form joint ven-
tures. Others turn to external consulting firms, whose
geotechnical specialists have extensive knowledge in
unconventional plays of all kinds.
Evaluating Eagle Ford acreage
An independent operator with prior experience develop-
ing other reservoirs in South Texas had acquired a num-
ber of leases in the oil window of the nearby Eagle Ford
shale play. In 2010, the Eagle Ford proved to be the sec-
ond most prolific producer of unconventional oil in
the US after the Bakken. Currently, about 160 rigs have
drilled more than 1,200 wells in the Eagle Ford. The play
produces approximately 100,000 b/d of crude oil and
condensate. According to one industry analyst, that rate
could increase fivefold by 2015.
The small operator holding some of these promising
Eagle Ford leases found itself facing an impending
deadline to make a strategic economic decision about
the fate of its assets. Questions that senior management
urgently needed to answer included, What are the key
production drivers here? How much oil is in place?
What is the effective drainage area of a typical hori-
zontal well with multistage fracture completions?
How much oil could we recover over 10 years or
longer?
Not only were decision-makers facing a deadline
they had one month to reach a decision but they
also faced major technical constraints. Well data
available for petrophysical analysis were limited
both in number and quality, and no cores were
available for calibration. Despite the current prac-
tice of drilling horizontal laterals with multistage
hydraulic fracture completions, the operators exist-
ing well and production data came only from a few
vertical wells with single-stage completions. Also,
like many of its peers just entering unconventional
plays, the companys technical personnel lacked
the time, experience, and appropriate modeling
tools to conduct a detailed evaluation themselves.
To obtain the information they needed, manage-
ment engaged consultants who had both local
Jesse Cryer and Li Fan,
Schlumberger Data & Consulting Services
An independent operator with acreage in the Eagle Ford oil window
(green) engaged Schlumberger to provide a detailed evaluation of its
assets. A multidomain team of consultants completed the project in just
three weeks. (Image courtesy of Schlumberger)
Expert evaluations are
essential in shale oil plays
A case study from the South Texas Eagle Ford illustrates how
partnering with experienced consultants can ensure success.
44-45 OpEff-SLB_44-45 OpEff-SLB 10/21/11 11:37 PM Page 44
45
expertise in the Eagle Ford and the right technology to
deliver a thorough and reliable quick look evaluation
of its assets despite limited time and data.
First, a multidomain team of geotechnical specialists
rapidly collected and reviewed all available data within
the acreage under consideration. Second, they per-
formed a detailed petrophysical analysis of digital log
data from 21 vertical wells, supplementing the opera-
tors information with knowledge gained from working
a wide range of shale projects in the area. Third, using
an E&P software platform, they built a 3-D static reser-
voir model and populated it with petrophysical proper-
ties to calculate original oil in place.
Since no horizontal wells or multistage completion
data were available for analysis, consultants developed a
unique approach to predict production rates and long-
term recovery. Using a reservoir simulator, they con-
structed a typical vertical well simulation model and
performed history-matching with production data from
eight vertical wells to derive formation permeability and
estimate completion effectiveness and drainage area.
They then modified the completion in the vertical well
model to represent a single-stage hydraulic fracture
treatment and ran the model to predict oil and gas pro-
duction over a 10-year period.
Next, the team constructed a typical 1,525-m (5,000-ft)
Eagle Ford horizontal well simulation model with a 14-
stage hydraulic fracture treatment assuming each stage
was identical to the single-stage frac modeled in the verti-
cal well and ran the model again to forecast potential
oil and gas recovery. Finally, they performed sensitivity
analysis that enabled them to rank the main production
drivers in the study area and specify uncertainties.
The consultants successfully completed a highly
detailed Eagle Ford asset evaluation in three weeks time,
providing solid answers to all of the operators primary
questions within stated ranges of uncertainty. For exam-
ple, the results of petrophysical analysis and reservoir
modeling indicated the Eagle Ford acreage under consid-
eration appeared to contain significant volumes of oil in
place as much as 4.6 Bbbl. The report provided a reli-
able range of stock tank barrels of oil per acre and the
effective drainage area of each well. Geotechnical experts
determined that the two highest-ranking production driv-
ers in the study area were natural fractures and hydrocar-
bon pore volume. They were able to forecast low, median,
and high oil and gas cumulative production estimates for
up to 30 years. They found that a properly designed and
fracture-stimulated 1,525-m horizontal well in the area
could potentially recover more than 600,000 bbl over a
30-year period.
More informed investment decisions
By tapping outside expertise in the Eagle Ford shale play,
the operators management team was able to obtain a
working model of the asset, estimate its long-term poten-
tial, and make a well-informed economic decision in time
to meet the deadline. As a result, it developed a firm plan
to maximize the assets value and meet the companys
strategic business objectives going forward.
With extensive experience in unconventional plays and
access to specialized software tools, multidomain consult-
ing teams can rapidly deploy both proven workflows and
innovative solutions to identify the reservoir and comple-
tion risks and variables that most impact production and
profits from challenging shale oil plays like the Eagle
Ford. Having seasoned experts with the right tools at their
fingertips enables even the
smallest operators to make
more informed investment
decisions from the data they
have, even if it is uncertain or
incomplete.
IMPROVING
EPmag.com
READ MORE ONLINE
There is more
to the story
44-45 OpEff-SLB_44-45 OpEff-SLB 10/21/11 11:37 PM Page 45
Ensure rig crew and personnel are well prepared to
carry out operations reliably and accurately on a
daily basis and identify trends among your fleet wit
ModuSpec's Competency Assessment service.
M2
AModuSpecM
46
IMPROVING
F
or years, operating companies have out-
fitted their assets with monitoring
equipment to ensure safety and simplify
maintenance and repair. As assets age, this
equipment becomes outdated and is more
prone to failure. In evaluating monitoring
equipment efficiency deployed on mature
fields, many operators are finding it neces-
sary to replace aging equipment.
Protecting investments
There are many considerations when
choosing machinery protection and
condition monitoring equipment.
Foremost among these are safety, environ-
mental compliance, production require-
ments, costs, and criticality to the process.
There are three primary options to
choose from, depending on specific
application needs.
The first option is to collect data using a
handheld collection device. This approach
focuses on maximizing equipment reliabil-
ity and lowering maintenance expenses by
collecting equipment data on a set sched-
ule using a portable data collector. The
gathered data is analyzed using software
developed specifically for condition-moni-
toring solutions.
This approach is ideal for a small system,
is inexpensive with a small upfront invest-
ment and low maintenance costs, and can
be migrated easily to an integrated surveil-
lance solution as the program grows.
One of the primary drawbacks of this approach is that
the data updates are less frequent and data collection is
time consuming. There also is a risk of human error.
Another option is to use protection monitoring sys-
tems. The safety and financial risks associated with many
assets require that they be monitored continuously in
real time by systems that can provide an exceptional
level of performance and reliability. If a problem occurs,
this type of software-based system can shut down the sys-
tem immediately, helping protect the asset from further
Beth Parkinson, Rockwell Automation
Marathon Oil Corp. has been producing oil and gas in the UK for more than 25
years. Among the companys operated North Sea assets are the Brae Alpha, Brae
Bravo, and East Brae platforms. (Images courtesy of Rockwell Automation)
North Sea production platform gets
vibration monitoring control upgrade
The need to deal with equipment obsolescence has led to the implementation
of new technology and improved monitoring.
46-49 OpEff-Rockwell_46-49 OpEff-Rockwell 10/21/11 11:37 PM Page 46
47
damage and mitigate damage to other connected equip-
ment. This approach to monitoring is advantageous
because the software shuts down a machine if limits are
exceeded. It provides detailed information on the
machine condition, which allows for precise prediction
of the approximate failure time. And because it is soft-
ware driven, the system can deliver data immediately for
analysis. These systems call for a higher upfront invest-
ment than manual and surveillance monitoring because
of their hardware and software requirements, and they
require additional IT and engineering resources for sys-
tem operation.
A third option is an online surveillance system. An
online surveillance system allows data gathering such
that integration with other key production process infor-
mation from the control system can be accomplished
easily. Surveillance condition monitoring is ideal for
data collection that must be automated due to safety
concerns, limited machine access, insufficient resources,
and experience. An online surveillance system is the best
choice when failures can occur frequently or suddenly.
This type of system also allows for rapid machinery shut-
down when limits are exceeded. And continuous data col-
lection allows problems to be anticipated by alerting the
operator that a piece of equipment is experiencing prob-
lems. A condition monitoring software application serves
as the core of an online surveillance system. The applica-
tion can be run from handheld devices if desired to pro-
vide added flexibility.
This system works via permanently installed sensors that
sample data periodically without operator oversight. As
with protection monitoring systems, an online surveillance
system provides detailed machine condition information
so failure time can be pinpointed. The system also allows
the operator to concentrate on problem-solving instead
of manual data collection. It stores and displays data
immediately for analysis purposes, enables data acquisi-
tion to be scheduled frequently for earlier fault detection,
and permits quick preliminary diagnosis of machines in
alarm without having to manually access the machine with
a portable data collector. It also reduces human exposure
to dangerous situations.
The downside is that an online surveillance system
costs more up front than manual monitoring because
of the hardware and software requirements and requires
additional IT and engineering resources to operate
the system.
Identifying the problem
Marathon Oil Corp. has been producing oil and gas in
the UK for more than 25 years. Among the companys
operated North Sea assets are the Brae Alpha, Brae
Bravo, and East Brae platforms.
The Marathon East Brae production platform is a hub
for the companys North Sea gas production. Low-pres-
sure operation projects are helping to maximize gas recov-
ery and maintain high gas deliverability rates into the UK
market. Keeping the platform running at optimum capac-
ity in the harsh North Sea environment is a constant chal-
lenge. So when Marathon began to experience technical
challenges with the aging vibration monitoring equipment
on the platform, Paul Stewart, electrical and instrument
facilities engineer at Marathon, decided it was time to look
at a strategy to upgrade the system.
All of the main processing equipment on the East
Brae platform is outfitted with a system that monitors
and reports on the condition of the equipment based
on frequency output. The system triggers an alarm if
there is a problem and can shut down a piece of equip-
ment if necessary. The problem Marathon faced was
that the vibration monitoring equipment was old and
had begun to require significant maintenance.
The system was aging and rapidly becoming obso-
lete, Stewart said. Reactive maintenance requirements
were increasing. We could no longer buy certain spares
for the existing system, and repairing faulty items was
becoming increasingly difficult due to obsolescence of
electronic components.
Marathon decided it needed an upgraded system.
The company wanted a cost-effective solution that
would be compatible with existing vibration probes on
the machinery. If new probes were required, the cost of
the upgrade and the amount of time that the equipment
was out of service would be increased significantly. It was
also critical that the new system communicate with the
IMPROVING
To meet
Marathons requirements,
the team installed modules from the
Allen-Bradley XM Series of intelligent I/O modules.
48
IMPROVING
platforms distributed control system (DCS) so the system
could be managed from the central control room.
It was important that we selected a system that would
interface with all the existing systems, cope with the legacy
communication standards, and be able to work with any
future control system upgrades, Stewart said.
Solution and implementation
Marathon chose Rockwell Automation because of the
benefits of the companys Integrated Architecture
approach. We could select the various components
to build a system to meet our specific needs, knowing
that all the components were compatible with each
other and with our existing vibration probes, Stewart
said. The modular approach also allowed the work to
follow a phased approach, which minimized disruption
to operations.
The first phase of the work was to replace the vibration
systems on the three gas export compressors. Work on the
first compressor was completed as scheduled within two
weeks and was performed by two engineers from the
Rockwell Automation Oil and Gas Specialist team, who
also designed and documented the project.
To meet Marathons requirements, the team installed
modules from the Allen-Bradley XM Series of intelligent
I/O modules. These modules process in real time the crit-
ical parameters used to assess the health of rotating
machinery onboard the platform and predict the future
health of the machines.
The monitoring system was connected to Rockwells
Allen-Bradley PanelView Plus electronic operator inter-
face. Programmed with RSView Studio Machine Edition,
the interface monitors and displays information graphi-
cally, allowing operators to view the status of their machin-
ery more easily. The team also installed an Allen-Bradley
CompactLogix PAC to provide effective communication
interface to the DCS.
The benefits were immediately apparent, Stewart said.
We now have a much more reliable vibration monitoring
system that has resulted in improved reliability and avail-
ability of the compressor.
The controls all fit into the existing panels, which
avoided additional work, reduced costs, and minimized
installation time. With the PanelView Plus system, Rock-
well Automation also was able to replicate the functional-
ity and layout of the original system displays to simplify
use. The new system provides additional maintenance dis-
plays, with diagnostic indications to assist maintenance
personnel with fault finding.
LUFKIN
TOTAL WELL CON
fr m r rf
Lufkin Well Manage
ptimizes Production for
Rod Pump Control
Variable Speed Drive
Injection Well Control
Progressing Cavity Pump Contro
automation@lufkin.com
281.495.1100
The Energy Flows Through Us
'
LUFKIN.COM AUTOMATION
ROD PUMP CONTROL
LUFKI N
AUTOMATION
LUFKIN WELL
MANAGER-
0
I
Email: ccs@nov.co
ationa
row pore pressure / fracture
Oilwell Varco
o
today for mor
drillin
MATIOMA LL VARC
The NOV line of Shaffer' CCS equipment is the first
ste towards "continuous drilling" with jointed drill
The CCS is a self contained rig floor device
allows drill pipe connections to be made, while
ng or tripping, without stopping circulation to the
well bore. Using the CCS requires no changes or
ions to the drill string and all tool joint
nnect/disconnect operations at circulating pressur
take place inside a pressure vessel constructed from
roven BOP components. CCS technology delivers
product performance with field proven testing
n significantly improve drilling efficiency by
reducing nonproductive time. Benefits include:
Continuous cuttings transport
total connection time
IML
drilling fluid costs
Maintains an even V#npojW throughout the annulu
Provides near steady-state drilling conditions
a stuck bit or BHA
.
nates circulation time befgr'taking connectio
es overall bit penetration
www.nov.com/ce
w
Continuo s Rotary Drilling Demands...
C S
PV
aw
!
P
M.
Jilt
i
1
rr
I I I
-
t I
-a. .
i
'?
ifT.3i.
A 1
MIS
" ,
I
1 1 .
7
. .
og
solutions.
50
PASSIVE & MICROSEISMIC
TECHNOLOGY
W
hile microseismic data have been used for decades
for various applications including mineral mining,
engineering, and gas and water storage, the use of
microseismic monitoring for oil and gas production is a
relatively new field that began in the early 2000s. The
microseismic method has risen in priority as the indus-
try has shifted its focus to unconventional hydrocarbon
reservoirs.
One of the biggest challenges of microseismic monitor-
ing is the perceived inconsistency in results from one
service provider to another and from one program to
another. Without a set of best practices or a standardized
method for acquiring and processing the data, it is diffi-
cult to provide a consistent set of deliverables. For exam-
ple, many service providers in the industry use purely
automated processes that detect microseismic events with-
out quality control (QC) to validate these beyond the
mere use of a threshold magnitude as part of the data fil-
tering during processing. A more accurate QC process
has been developed with a carefully defined set of criteria
for what is and what is not a microseismic event, using
advanced processing algorithms, interpretation software,
and the expertise of specialized geophysicists.
Microseismic accuracy
The accuracy of microseismic event interpretation
depends on several factors such as the quality of the
velocity model, the amount of noise, and the assump-
tions underlying the processing techniques. With many
different techniques in use, E&P operators stress the
need for service providers to quantify the accuracy and
reliability of their results. By implementing a manual
QC procedure, a trained operator ensures that each
potential event is reviewed by a geophysicist before it
is validated as an actual microseismic event.
To further enhance this process, extensive research is
being conducted on synthetic data to estimate the sensi-
tivity (the smallest event that can be imaged) and the
uncertainty of several parameters, such as the position
of the event, the type of focal mechanism (describing
the geometry, slip direction, and mechanism), and the
orientation of the frac so that error bars can be pro-
vided with the final results. These are all significant
advances in the field that will have major implications
for how data is used for more than simply reporting
the time and position of an event.
Focal mechanisms,
drilling program development
The provision of focal mechanism information also is
a significant development for the field of microseismic.
The location and magnitude of
microseismic events give only
limited insight into the processes
controlling the creation and propa-
gation of fracs. The focal mecha-
nism provides a more complete
representation of these events and
can be calculated from the first
compressional-wave motion. The
most general description of a focal
mechanism is through its moment
tensor, which describes the frac
as a set of equivalent forces. Focal
mechanisms are usually displayed
as beach balls representing the
Emmanuel Auger, Francois Aubin, Vincent Rajic,
& Allison Branan, CGGVeritas
There are several geometries that can be used for gathering surface microseismic data, each
with variable degrees of noise quality. The grid geometry provides the most coverage and the
greatest ability to filter out harmonic distortion caused by ground roll and surface conditions.
(Images courtesy of CGGVeritas)
Microseismic data:
Understanding the uncertainty
Microseismic monitoring can help mitigate risks associated with
fracing unconventional hydrocarbon reservoirs.
50-53 PassMicro-CGGVeritas_50-53 PassMicro-CGGVeritas 10/21/11 11:37 PM Page 50
GeoStreamer
GST1
Broadest bandwidth
Increased confidence
Reduced risk
GeoStreamer
+
GeoSource
GeoStreamer GS is the first marine acquisition system to
eliminate both source and receiver ghosts.
The combination of the proven GeoStreamer ' dual-sensor
technology with the time and depth distributed source of
the new GeoSource
lM
offers unprecedented bandwidth.
Oslo London Houston Singapore
Tel: +47 67 526400 Tel: +44 1932 376000 Tel: +1 281 509 8000 Tel: +65 6735 6411
Fax:+47 67 526464 Fax:+44 1932 376100 Fax:+1 281 509 8500 Fax:+65 6735 6413
A Clearer Image
I
www.pgs.com/GeoStreamerGS
Ghost-free acquisition.
Solved.
Scan to learn more about
GeoStreamer GS
52
strain at the event source as well as which sectors
are in tension and which are compressed. These
indicate the type of failure that has occurred by
showing the slip direction, whether the fracture
is shearing or tearing, and whether a change in
volume has taken place (i.e., the opening or clos-
ing of fracs). Inversion for seismic moment tensors pro-
vides a means of characterizing microseismic events to
gain an advanced understanding of the stress-strain field
and the frac orientation and propagation.
Several service providers recognize the tremendous
value this information can provide in terms of under-
standing the state of the local stress fields, which deter-
mines the orientation of induced fracs and whether they
will open and stay open as well as predicting possible
reactivation of existing tectonic faults. Interpreting this
data enables adjustments to be made to geomechanical
reservoir models and aids in designing drilling and com-
pletion strategies for optimal production to determine
how many frac stages to incorporate, what pressure to
use, and how much fluid and proppant injection will be
required to stimulate the well.
Understanding the effects of hydraulic fracturing on
the reservoir and the subsequent production allows
engineers to modify their processes and customize the
completion program between frac stages rather than
using the statistical approach the industry has adopted
in the past. The impact of this information could trans-
late into improved production and reduced overheads
as adjustments in the field during completion can be
implemented immediately, potentially saving millions of
dollars or bringing the well online faster. In addition, it
enables the fracturing process to be halted if the fracs
appear to be going out of the desired zone, therefore
reducing any environmental risks.
Providing real-time focal mechanism analysis requires
advanced processing technology and infield expertise to
transform the data into a usable format for production
optimization. Most service providers supply real-time
information about the frac location and time; however,
using proprietary software, CGGVeritas has the capacity
to support real-time focal mechanism analysis as well.
Integration of microseismic
and conventional seismic data
Passive microseismic data also is being recorded in
conjunction with conventional active seismic data by
permanent reservoir monitoring systems such as Seis-
Movie. These systems provide long-term monitoring of
changes in the reservoir, including the migration of flu-
ids and frac movement and/or closure. These can be
correlated with production to plan restimulation pro-
grams and the efficient and cost-effective management
of field exploitation.
The true value of microseismic data lies in its integra-
tion with other reservoir data to provide a complete
lithological and geomechanical model of the reservoir.
This requires advanced reservoir characterization tech-
niques and the combination of all available reservoir
information, including well cores and logs, rock proper-
ties and attributes derived from petrophysical analysis,
elastic and stochastic inversion of 3-D seismic, and
geomechanical attributes derived from azimuthal
anisotropy studies, as well as data from microseismic
monitoring. Monitoring the fracturing process provides
a technique for validating and refining the derived
reservoir models. By using all the information in an inte-
grated manner and combining geological, geophysical,
geomechanical, and engi-
neering expertise, it is pos-
sible to obtain a more
complete reservoir model
and optimize production
while minimizing risk.
The true value of
microseismic data lies in
its integration with surface
seismic data and other
reservoir data to provide
a complete lithological
and geomechanical
model of the reservoir.
TECHNOLOGY
EPmag.com
READ MORE ONLINE
There is more
to the story
THE LEADING PROVIDER D SEISMIC IN NE AMERICA SINCE 1990
nnounces the purchase of
five Hemi-44 model vibrators
for your cross country or roa
seismic needs.
I
Designed for high quality geophysical prospecting,
these vibrators offer broad band output and a high
si nal to noise ratio for the deepest surveys.
41151 i b , 04?
A&
QOU
0
K//
'
1
4%
1112111 1110
61:411111111111 SYATLS
Tor rier ror
State of the Art Phase and Force Control.
Linear, Non-Linear and Custom Sweep capabilities.
Post Sweep Report - Quality Control report at the end
of the sweep. Includes Phase Error, Force Output, GPS
and other QC information.
PRECISION GEOPHYSICAL INC 2695 SR 83 SOUTH MILLERSBURG , OH 44654 PHONE 330-674-2198 1 SMCCROSSIN@AOL.COM
arcellus Shale and Utica Shale
PRECISION GEOPHYSICAL, INC
10
,
I
71
j
j
jV
T
T ? r
OF2D&3
54
TECHNOLOGY
S
timulated reservoir volume (SRV) is a critical factor
in resource plays and is used by engineers to assess
the effectiveness of a fracture treatment, establish
parameters for future frac stages, and compute decline
curves for quantifying bookable reserves. However, esti-
mates derived from widely used imaging approaches
come with significant limitations and uncertainties and
often result in SRV being overestimated. Another issue
is that the same data analyzed by different processors
can generate widely differing results, which leads some
engineers to question the value and integrity of the
information microseismic analysis is delivering.
Full wavefield analysis
A superior approach to delivering more reliable infor-
mation for optimizing production is full elastic wave-
equation imaging of microseisimic data. This should be
combined with instruments that sample the whole wave-
field from both surface and borehole locations. When
analysts acquire higher quality microseismic recordings
and use an algorithm based on the most complete
physics, they can avoid imposing assumptions on the
data and minimize the need for operator interaction.
The first element of this solution is high-sensitivity
three-component broadband surface and borehole
receiver nodes, with instrument self-noise below ambi-
ent earth noise. Spectraseis deploys these instruments as
part of its Ultra Sense broadband microseismic surface
and borehole arrays, with a flat frequency response from
0.1 Hz up to 1,000 Hz delivering broadband datasets
with improvements in event detection and usable band-
width compared to conventional tools. Highly flexible
acquisition geometries are achieved by nodal surveys
free of the physical constraints of cabled arrays.
By adding a strong low-frequency response and
greater sensitivity, these arrays are lowering the indus-
trys detection threshold for frac events recorded from
both surface and borehole locations. The advantage to
the operator is a flexible acquisition strategy combining
the most advanced instruments, integrating real-time
results as needed.
Modeling
Another important element is forward modeling to
design the optimal acquisition geometry prior to field
work to incorporate the objectives of the program into
the survey design. The resulting solution could include
arrays with any combination of surface, near-surface,
and borehole deployments designed to optimize the
frac imaging quality at a specific target location.
It should be no surprise that a one-size-fits-all approach
to frac monitoring fails to meet expectations most of the
time. Instead, the main aim in developing a microseismic
survey geometry should be to get the operator the best
possible dataset within its budgetary parameters while
ensuring that the program goals will be met. Forward-
modeling the survey geometry is an essential step given
the wide variation in geological and environmental set-
tings around unconventional plays.
Dr. Brad Artman, Spectraseis
The multiples problem: A single perfo-
ration shot from a surface array, raw
(left), is flattened on the first arrival
(right). Intrabed multiples labeled 1-5
have high signal-to-noise and faster
apparent velocity, generating four
false events in the volume. Elastic
wave equation imaging eliminates
this problem. (Images courtesy of
Spectraseis)
Imaging breakthrough promises
more reliable SRV calculations
Accurate evaluation of the volume of a reservoir that has been effectively stimulated by
fracturing operations is central to generating returns from unconventional resources.
54-55 PassMicro-Spectraseis_54-55 PassMicro-Spectraseis 10/21/11 11:38 PM Page 54
New methodology
While the array design and equipment are crucial to
improving the reliability of microseismic data, further
advancements are likely through the introduction of the
first elastic wave-equation imaging algorithm for frac
events. The Time Reverse Imaging (TRI) method, the
subject of 12 issued and pending US
patents, addresses pitfalls by eliminat-
ing the assumptions and simplifications
of ray-based techniques.
TRI removes the need for intensive
operator input, reducing processor
bias and improving efficiency. The
TRI processing flow provides robust,
data-driven mitigation of acquisition
artifacts, noise contamination, and
false positives. In this way, it provides
not only locations but meaningful
amplitudes as well. Using transparent
statistics, the workflow also provides
statistical confidence that events are
not false positives.
Beyond providing accurate event
locations, the real power of imaging
the seismic frac radiation pattern is the
ability to fully characterize the event
failure mechanism. The radiation of
P and S energy from the frac encodes
the azimuth and dip of the frac into
the wavefield. The moment tensor is
directly retrieved from these images
to measure the subsurface stress
regime. Drilling direction and frac
connectivity can be understood with
this information.
To handle the compute-heavy wave-
equation imaging, Spectraseis has
developed software to run on graphical
processing unit clusters that use thou-
sands of cores in parallel. The run-
time for a typical TRI volume has
been reduced from weeks to hours
as a result. Elastic propagation and
imaging codes are running near theo-
retical throughput maximums. Having
reached hardware limitations, the
company is now working on domain-
decomposition strategies that promise
extremely high processing speeds for
microseismic data, opening the way to
TRI imaging in real time.
Elastic processing is the natural domain for handling
multimode data generated by fracturing rocks. It is a
natural evolution for microseismic to capitalize on the
power of migration methods. The result is a step-change
in the potential value of microseismic frac data to the
working engineer.
55
EPmag.com
READ MORE ONLINE
There is more
to the story
54-55 PassMicro-Spectraseis_54-55 PassMicro-Spectraseis 10/21/11 11:38 PM Page 55
Discover
The Power of Integration
Jason
ID
RockMod
High Detail from Combined
Wells, Geology, and Seismic
M?
I
1Y1?,
tnyni, ,,n ,y
p
IIphnr1M1p 11
nq
lllll l
,
U b IP
-"'"
"MIMMW
li
'pllllnUMhih ,?l li
d
dllj
11
' 9I
W41 Reservoir Interval
IIIUII
II''01I
0111 ill
l
l
]
m'
'?1"'M11pIN?11?
I
?? Il?ull
??
??I??uN?l?1?n1111?
??IIIIIIpIIUIIIUI
'I'
IMb
1j 1
n
ill
IP'
l ? '
n P 11110
,
? l l l l ?i !! I?yw
';IlllgNi
IHllllllll!INN1111i?11
Ii II?II?I
I'll?
,
lilh111lud Nllllq I
VI
II II
I
ullln iI tIiI ,uv,.,
?
I
I NMINNNIMIMIN IIIINMIIMIII IIIIIIII
=?
?
? ?
Detail from ost stack seismic dat a
Detail from RockMod prestack geostatistical inversio
Fugro-Jason's RockMod offers unparalleled Insight Into your
reservoirs by integrating geologic knowledge with well log and
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.
Visit our webti te to dowxload the Use History paper 0e this pro/ut.
GRO
w,vw.fuyyro iow?.co.r,/MOo?
FUGRO?
JASON
Wyege of De o oy
tw??-167 '?Y/
- s!
WM
O
ne of the basic problems that a directional driller
faces is to accurately set a specific toolface orienta-
tion. After a connection, the driller must rotate the pipe
at the surface and experiment with the weight-on-bit
and top drive quill position to orient the toolface. The
driller has to work with throttles, clutches, brakes, and a
forward or reverse control to orient the drillpipe to the
correct position. The challenge is to properly orientate
the downhole tool to steer the well bore in a desired
direction. This can only be done manually by feel, tim-
ing, experience, and estimation due to the fact that a
certain amount of rotation at the surface may not neces-
sarily result in equal rotation at the downhole tool. This
obviously takes time.
The Canrig ROCKIT directional steering control system
removes guesswork and eliminates the need for precise
timing and the right amount of throttle. It has demon-
strated its ability to save rig time by increasing the rate of
penetration (ROP) while sliding, orienting the toolface
setting more rapidly and improving the toolface control.
By identifying particular areas of concern, engineers were
able to design a system that solves directional drilling chal-
lenges and contributes to safer and more efficient drilling
operations. Integrated with the standard Canrig top drive,
the program controls the amount of rotation.
The system allows the driller to enter the quill posi-
tion using a touchscreen so the top drive rotates the
pipe to the desired orientation. The quill can be
adjusted forward and reversed to achieve the desired
toolface. The pipe no longer has to be marked manually
by the rig crew or directional driller, and the entire
process improves safety by keeping the crew away from
the drillpipe.
Once the toolface is set, controlling and accurately
maintaining its orientation becomes the next challenge.
During slide drilling operations, orientation is altered by
formation changes, variations in drilling parameters, or
reactive torque causing unwanted deviations from the
planned wellbore path. Directional drillers struggle to
get the toolface back on track, frequently creating non-
productive flat time.
Expensive downhole agitators frequently are used to
help reduce friction, but they create other problems
that can only be fixed by a trip out of the hole. ROCKIT
has a built-in bearing offset control that provides fine
control of the toolface orientation allowing the operator
to nudge the toolface left or right while drilling. These
adjustments can be made while drillstring oscillation is
in progress.
Reduces friction, improves ROP
Wellbore friction reduces the amount of weight that can
be put on the drill bit, which results in a lower ROP. Can-
rigs directional steering control system can oscillate the
drillstring from the surface to dramatically decrease fric-
tion. The amount of oscillation left and right is adjusted
by the operator and can be programmed from a slight
fraction to several revolutions to provide maximum drill-
string rocking without affecting toolface orientation.
The system was designed to give the driller the data
needed for directional control. Historically, a driller
56
DRILLING AUTOMATION
& CONTROL
Colin Gillan and Scott Boone,
Canrig Drilling Technology
New software removes guesswork
from directional applications
Toolface control while sliding is an important element
in saving costly rig time in directional drilling applications.
The systems directional drilling automation platform integrates
critical details onto one monitor, eliminating the need for a driller
to view multiple screens while making drilling control decisions.
(Images courtesy of Canrig)
56-57 Drill-Canrig_56-57 Drill-Canrig 10/21/11 11:38 PM Page 56
has had to check a number of screens to gather informa-
tion needed to make a drilling control decision. This sys-
tem integrates critical details on one screen, including
MWD toolface data, MWD inclination and azimuth, tool-
face advisory, resultant toolface, pump pressure, and
Delta pressure. Having all of this information in one
place makes it easier to steer while slid-
ing and makes the entire process more
efficient. It also allows drilling person-
nel to react faster to changing down-
hole conditions and reduces the
chance for costly errors.
The system consists of the programma-
ble logic controller (PLC), a position
feedback signal, a torque sensor, the
man-machine interface (MMI), and the
downhole tool information feedback
unit. These five components operate
together to accomplish tasks that, in the
past, required repeated manual inter-
ventions and a trial-and-error process to
obtain the proper results.
Success in the Barnett shale
A recent study analyzed six wells in the
Barnett shale in the Fort Worth area of
Texas. These wells were all medium
radius horizontal wells with a pay zone
around 1,676 m to 1,829 m (5,500 ft to
6,000 ft) true vertical depth. Each had
lateral sections of between 457 m and
610 m (1,500 ft and 2,000 ft) with total
measured depths of approximately
2,896 m to 3,048 m (9,500 ft to 10,000
ft). In the first three wells, slide drilling
and toolface control were carried out
in a conventional manner for the curve
and lateral sections. In the following three wells, the
ROCKIT technology was used to drill the curve and lat-
eral section. The study showed significant improvements
in ROP and drilling efficiency when the system was
deployed.
Drilling performance also showed a marked improve-
ment in ROP numbers from the previous three wells
drilled in the same area and formations. The operator
analyzed the performance data in house and arrived at
the conclusion that ROCKIT technology significantly
reduced drilling time by saving up to a day of rig time in
drilling the curve and another day in the lateral sections
of these wells.
The value proposition offered by the system has been
widely accepted by operators and their directional
drilling contractors, and it currently is in use in the
Pinedale area, Eagle Ford shale, and Gulf Coast region.
The directional steering control system is available on all
new Canrig AC top drives and can be retrofitted to exist-
ing AC top drives.
57
The Toolface Advisory on the ROCKIT screen is used to guide the
driller into the directional target or back to the planned well path.
DRILLING AUTOMATION
& CONTROL
56-57 Drill-Canrig_56-57 Drill-Canrig 10/21/11 11:38 PM Page 57
a
s
?
i
l_
'.
i , 1 0l'c
ofthevast
-users
sses.
Borehole Data Management Solutions
Collected over a long period of time and at significant cost,
borehole data is essential to effectivel y maximize existing
reservoirs
, explore for additional energy sources and drive
growth for your company.
PETRIS
www.Petris.com
a
I
ft
while ma
E
ver challenging field developments now ask for effi-
ciencies that, despite vast improvements in technol-
ogy and operational efficiency, the industry still cannot
deliver. That is not to say that the industry cannot pro-
vide these solutions, but it does mean that cooperation
and collaboration will be required to innovate through
these challenges. To see the impossible become possi-
ble, one needs only to look back at previous drilling
challenges the industry has overcome in the past.
Managed pressure drilling, ultra-deep water, the dawn
of rapid batch drilling for horizontal wells, extreme ERD,
and the technologies that have opened up unconven-
tional gas economics were all industry frontiers at one
time. Many of these hurdles have been tackled incremen-
tally, pushing through the technical limit step by step. But
if cost is the ultimate driver, the question is, Can any
more cost be squeezed out of the current model, or is it
time to adopt new models? Should each drilling compo-
nent be made more efficient, or should the complete
drilling process be addressed? Sitting at the center the
new efficiency model for these challenges is the opportu-
nity to develop industry drilling controls to be linked to,
and guided by live feedback in the well.
Drilling controls are the gateway to this macro-innova-
tion, and this technological shift will be rooted in improve-
ments in rapid communication and the new host of tools
becoming available in automation. To become more effec-
tive in manufacturing a hole in the ground, all the parts of
the whole need to work in concert and talk to each other
more than they talk to multiple users. Instead of the too
many chefs in the kitchen paradigm, the industry is look-
ing at an overworked chef who is asked to cook an overly
complicated meal before the restaurant closes. The restau-
rant has to stay open, so is tossing the chef a better soup
recipe really going to alleviate the problem?
The next step in innovation
In April 2010, the SPE hosted a Workshop in Galveston,
Texas, to discuss the next step in drilling efficiencies cen-
tered in automation technology. The debate was lively,
but the consensus was that there are key drivers common
to our mutual success as an industry:
The ability to make automated systems a reality
exists if there is willingness and a financial incentive;
Automated processes proved to be far more reliable
than originally perceived, and there are proven
methodologies in place to ensure the anticipated
levels of efficiencies could be achieved;
Common control language is available from other
industries where the standards have already been
established;
Business models that reward innovation have the abil-
ity to drive automation; but the industry has histori-
cally shown reluctance to employ these models; and
An automation road map identified low-hanging
fruit opportunities to justify taking the leap toward
automating.
The most striking event of the forum was the
announcement made by a major operators software
developer that the company had gone from start to fin-
ish in developing an automated drilling process on a low
budget within eight months. In response, a prominent
service company Phd commented, That was always our
fear. This might just be simple. Participants have been
discovering collectively since Galveston that very reality.
The key for success sits in developing a platform that
facilitates more development without the heavy cus-
tomization that has caused severe problems for many
drilling contractors and operators.
Engineering a new puzzle
The Automation Forum has marked a significant turn-
ing point in an industry-led automation conversation
that has lasted nearly four decades. All of the initial
investments have been incremental, and many of the
investments have ranged from failing to meet expecta-
tions to simply getting a concept to work. However, this
recent acceleration of drilling automation has seen both
a marked influx of capital and a powerful need to signif-
icantly lower costs. In response, new technologies have
been rolled out to match these trends, but they have
delivered incremental improvements similar to previous
efforts. So the question that has to be asked is, How
much more engineering can a puzzle piece take before
we decide it is time to engineer a new puzzle?
The new technologies that directly impact operational
efficiencies are all completely external inputs to the
58
DRILLING AUTOMATION
& CONTROL
David Reid and Jeremy Ogg, National Oilwell Varco
Get readyThis is not a drill
The recent growth in drilling activity has thrust the industry into a new era
of technical innovation.
58-59 Drill-NOV_58-59 Drill-NOV 10/21/11 11:38 PM Page 58
drilling system from the BHA or the drilling controls.
Many important drilling advisers exist as do automated
down-linking pulse controls, drilling break automation,
speed management systems for the top drive to mitigate
stick slip, hoisting and lowering envelope controls, mud
pump ramping and synchronizing software, RFID mainte-
nance and asset management, condition monitoring and
health check systems, ROP sweet-spot identification
through closed loop software, closed loop
fluids management, downhole string
pressure and temperature measurements,
logging while drilling, and the list goes
on. These are all puzzle pieces, not a new
puzzle. They all are external to the main
drilling machine. An opportunity exists
for the drilling machines of the future to
be designed to facilitate a new era of
development.
Traditionally, much of the incremental
automation work of the past has been
done in isolation, but recently some
strong strides have been taken with the
help and encouragement of work done
by the SPEs Drilling Systems Automa-
tion Technical Section (DSATS) and
the IADCs Advanced Rig Technology
(ART) committee. It has been these
efforts that have prompted signifi-
cant behind-the-scenes work lead-
ing to new technological
development, much of which is
currently being tested in the
field. This is being lead solely by
industry-leading companies that
have caused the current buzz to
keep growing.
Automated solutions
One of the promising solutions
on the horizon is in furthering
integrated drilling con-
trols deeper into the
system, taking full
advantage of the high
bandwidth available
from Intelli-
Servs wired
pipe, creat-
ing a new
connectivity
to the well
and the drilling machinery that has never been supplied
without a number of software engineers holding the
effort hostage.
The new system will allow users to bring their drilling
performance models to the rig with their smart downhole
tools and enter a new era of optimizing drilling perform-
ance live. The progression of this system is the nirvana of
closed loop drilling processes. This very positive move for-
ward will help the industry get
out of the customized software
game on the rig and into the
well manufacturing game. The
hope is that the drilling rig sys-
tem will remain standard and
free from becoming a complex
software playground and to
create a new standardized plat-
form for all of the worlds
entrepreneurs to work on new
performance capabilities
expressed in drilling software
and specialized downhole
tools.
Future efforts will go
into developing and testing
software on a drilling
machine that is designed to
provide open access to all par-
ties who wish to improve any-
thing from supply chain and
maintenance on the rig to
dynamic closed loop drilling
automation.
But the evolution does
not stop there.
Open access
has the ability
to enable the
industry to fully
realize the efficien-
cies that it has been
working toward and
the severe market
models the society at
large is beginning to
demand. It is within the
grasp of the industry to
once again rise to the
challenge and prove that
the impossible is collec-
tively very possible.
59
DRILLING AUTOMATION
& CONTROL
How much more
engineering can a
puzzle piece take
before we decide
it is time to engineer
a new puzzle?
58-59 Drill-NOV_58-59 Drill-NOV 10/21/11 11:38 PM Page 59
I
ntroduced to the market in the early 2000s, swellable
elastomer packers are one-trip self-setting sealing prod-
ucts used to isolate annular spaces between tubulars and
open hole or casing and address inflow control perform-
ance, including sand management. They are increasingly
being deployed as an alternative to conventional cement-
ing, mechanical, and openhole packer technologies.
Swellable packers traditionally have been used with
single-fluid activation elastomers that expand in either
hydrocarbon-based or water-based fluids. Oil-based elas-
tomers, initially designed with a man-made EPDM poly-
mer material that swells naturally in oil, operate in a
diffusion-absorption process in which swell time and vol-
ume are determined by temperature and hydrocarbon
composition. The swell rate is faster at higher tempera-
tures and in lighter hydrocarbons as well as in lower-vis-
cosity fluids.
A water-swellable elastomer is a nitrile-based rubber
crosslinked with a super-absorbent polymer that facilitates
swelling. The swell rate is faster at higher temperatures
and lower salinities.
A flexible alternative
Among the breakthrough technologies that have
emerged in recent years is the dual-fluid-activated
swellable hybrid elastomer that can swell in hydrocar-
bons or water or a combination of both.
The fit-for-purpose method cross-links the super-
absorbent polymer into the EPDM elastomer, providing a
homogeneous blend of rubber that can swell at different
rates depending on specific well conditions. Hybrid elas-
tomers swell faster at higher temperatures and in lighter
oils and lower salinities, and can swell up to three
times their original volume in oil and/or water.
Weatherfords hybrid elastomer tech-
nology is a swellable elastomer that is
responsive to both oil and water in liquid,
wet gas, or multiphase environments,
providing reliable, long-term isolation. Hybrid elastomers
eliminate the uncertainty of fluid type and also address
the issue of absorption rates that vary depending on the
type of fluid present and temperature.
Designed for use with a variety of packer systems,
the hybrid elastomers allow swelling to occur in a con-
trolled predictable fashion depending on well condi-
tions. The hybrid elastomers also ensure long-term
isolation because they continue to swell while making
contact with wellbore fluids even after initial swelling.
The hybrid design is advantageous for numerous appli-
cations, including cases where an operator needs a packer
to swell quickly or before a well begins production. Using
the hybrid elastomer, the process can be expedited with-
out occurring too quickly. The packer is initially placed
in brine where it begins swelling at a relatively slow rate.
When the well comes online with higher-temperature
oil, the swelling process accelerates at a rate much faster
than with a conventional oil-elastomer packer.
Another application is in oil wells where a water-produc-
ing zone develops. Deploying a hybrid elastomer provides
a cost-effective alternative to running a long series of oil-
based and water-based packers. The hybrid elastomer also
addresses the temperature limitation of water-based elas-
tomers, which are not recommended for use in environ-
ments that exceed 125C (257F).
A similar process is used for dry gas wells,
where swelling occurs at a fast rate due to
the low viscosity of the fluid and the
higher temperatures. When a
nonviscous fluid enters
the matrix too
quickly,
FLOW ASSURANCE &
Ross Clarke, Weatherford
Hybrid elastomers deliver
the best of both worlds
Advances in swellable elastomer packer systems are enhancing long-term
well performance at reduced costs for operators by delivering greater flexibility
in well design and more reliable isolation results.
60
The Genesis
swellable packer
provides cost-effective,
one-trip, self-setting isolation with
no moving mechanical components.
(Images courtesy of Weatherford International)
60-61 FlowSandWater-Weatherford_60-61 FlowSandWater-Weatherford 10/21/11 11:38 PM Page 60
61
explosive decompression can occur. To avoid that risk,
packers equipped with hybrid elastomers are swelled in
hydrocarbon fluid before the well comes online.
Eliminating uncertainty
Since the hybrid elastomer was introduced in January
2009, it has been used with packer systems globally for a
variety of isolation operations, including sand control.
In one case, a major operator encountered sand influx
into a gravel pack that was interfering with production in
a mature oil well producing water and sand offshore Azer-
baijan. Swellable packers were selected as the most reliable
isolation option, providing the operator with a five-week
turnaround that could pass through flow-control profiles
and seal in the screen without requiring a workover. The
remedial technology was deployed through narrow 4-in
casing. The swellable packer also allowed the well to con-
tinue producing during the activation phase.
Because there was no clear evidence indicating
whether the fluid concentration was water- or oil-based,
there was uncertainty over which kind of elastomer to
use. The Genesis Annulus Swellable Packer (ASP), suited
for both openhole and cased-hole wells, was deployed
with a hybrid elastomer, which was able to provide a seal
regardless of fluid type.
The operation was executed within the desired time-
frame. The sand was completely shut off within 30 days,
with decreases in sand production evident within that
period. The client plans to install the hybrid elastomer
packers in more wells in the same field. Hybrid elastomers
also can be used alongside water- or oil-based elastomers.
A major operator in West Africa required zonal isolation
in conjunction with an expandable sand screen (ESS)
sand control completion using swellable packers as the
most cost-effective solution. The plan initially determined
the use of water swellable elastomers because the comple-
tion fluid was brine, and isolation was
required prior to the well coming online.
After brine samples were tested, it
was determined that the swelling time
would exceed the operators require-
ments. Further testing revealed the
hybrid elastomer would provide similar
results to water swellable elastomers
in the brines. Because the packers
would be in the reservoir section, they
would be in contact with the in situ
hydrocarbons, which would allow the
oil swellable components of the elas-
tomer to swell concurrently, achieving
a faster swell to meet the customers
requirements.
Through further well evaluation and discussion with
the client, it was decided the sand control completion
would use a combination of hybrid swellable and water
swellable packers for the required zonal isolation. The
completion was run successfully, and the well was brought
online within the required timeframe. To date, produc-
tion has exceeded expectations.
Pushing the technology
The hybrid elastomer also is used with the swellable
Micro-Seal isolation system (MSIS), a low-pressure
packer designed to prevent micro-annular fluid and
pressure migration.
The seal provides micro-annulus conformity and seal-
ing in spaces that form after cementing and against the
outer diameter of the casing. Each MSIS seal is equipped
with a slow-swelling H2W2 hybrid elastomer that does not
respond to fluids in the well when the pipe is run or
when the cement is curing.
The technology also has been incorporated into the
ComboPac Open Packer system, a new concept that pro-
vides a combination of a conventional compression set
element and a conforming swellable elastomer packer
that can be used in both water and oil swellable versions.
The system is designed for a broad range of nonuniform,
openhole environments and has a lower pressure rating
and smaller outer diameter that can be installed in a vari-
ety of hole deviations. The system is effective for open-
hole completions and isolating sand screen sections and
in long horizontal wells.
Since it was introduced nearly three years ago, the
hybrid elastomer has been deployed on more than 200
conventional packer systems and 400 MSIS systems world-
wide. It is applicable for all well and reservoir conditions,
and its use is expected to be expanded to additional mar-
kets with todays increasingly complex wells.
FLOW ASSURANCE &
Oil Swellable Water Swellable Hybrid
Oil Swellable
Diffusion-absorption process
Swell time and volume
governed by temperature and
hydrocarbon composition
Will swell in condensate
and wet gas
Swell speed customizable
Oil swell rate is faster
at higher temperatures and
in lighter hydrocarbons
Water Swellable
Swell time and volume
governed by temperature and
water salinity
Will swell in water vapor
Used as means of swelling
Swell rate is faster
at higher temperatures and
lower salinities
Hybrid
Hybrid elastomer capable of
swelling in either hydrocarbon
or water-based solutions
for activation fluid
(independent swell control)
Element is single piece of
rubber (not sections)
Combination
Weatherfords swellable elastomer options are formulated to meet specific swelling
objectives and wellbore compatibility issues.
60-61 FlowSandWater-Weatherford_60-61 FlowSandWater-Weatherford 10/21/11 11:38 PM Page 61
FLOW ASSURANCE &
T
he never-ending battle to extract more reserves from
mature provinces such as the UK sector of the North
Sea has seen new precedents set for temperature and
pressure requirements in rigid riser systems.
The need to transfer multiphase products increasingly
from HP/HT wells back to shore makes this challenge
even more demanding. In a recent project, for example,
riser materials were exposed to extreme temperatures
ranging from 180C to -30C (356F to -22F) in certain
well conditions.
Historically, industry consensus maintained that
pipe-in-pipe systems able to withstand environmental
challenges such as corrosion, structural integrity, and
thermal management would be too costly and complex
to apply to riser systems. However, companies now work
closely with supply partners to engineer, procure, and
construct innovative pipe-in-pipe assemblies as a cost-
effective solution to flow assurance issues.
Pipe-in-pipe bends, while challenging technologically,
can lead to simplification of overall pipeline design and
can give better pipeline performance in times of opera-
tion and shutdown.
Why insulate risers and bends?
HP/HT fields are technically more complex to develop
because of the inherently higher energy in the well fluid
and its multiphase composition. Managing the extreme
pressure and operating temperature must be based on
criteria such as corrosion, maintaining structural
integrity, and thermal management.
One particular challenge is managing pipeline shut-
down. Less expensive solutions for managing the insula-
tion of bends, such as wet coatings, compromise overall
shut-down times due to reduced thermal efficiency.
However, solutions such as self-draining spools pres-
ent a significant design challenge that can be mitigated
by the inclusion of pipe-in-pipe bends, enabling the same
thermal integrity to be maintained in the whole line.
Tata Steel previously implemented a solution for pipe-
in-pipe bends for a North Sea development. But new
insulation techniques have since been developed that
give far superior insulation properties.
Risers, spools, and bends
The main challenge with the construction of pipe-in-
pipe bends is how to pass the inner flowline bend into
the outer casing pipe. It is important that pipe bends
have a straight portion on the end to enable efficient
welding to the next pipe section, and this can present
the insertion of one bend into the other.
The second construction challenge is efficient insula-
tion. Wrapping or sheathing is simply not practical dur-
ing this operation because the insulation would occupy
the annulus of the assembly and prevent integration.
Insulation
A system developed by Tata Steel overcomes these prob-
lems by deploying granular Nanogel insulation into the
annulus of the pipe-in-pipe system.
Nanogel is made by first forming a silica gel then
expelling the water from the silica matrix. The resulting
material is granular with trapped nanopores of air,
inhibiting heat transfer by conduction, convection,
and radiation (with the inclusion of an opacifier).
The deployment of a novel polymeric bulkhead, cast
directly into the annulus, provides a solid barrier to
Derek Bish and Richard Freeman, Tata Steel;
and Elke Muthmann,
Salzgitter Mannesmann Grobblech GmbH
It is important that pipe bends have a
straight portion on the end to enable effi-
cient welding to the next section. This can
present the insertion of one bend into
another. (Images courtesy of Tata Steel)
Pipe-in-pipe riser system, bends
overcome HP/HT challenges
Innovative construction techniques provide superior performance.
62
62-63 FlowSandWater-Tata_Layout 1 10/23/11 2:04 PM Page 62
63
retain insulation, allowing for the relative movement of
the inner and outer bends. The polymer is a syntactic
material, silicone rubber with glass microspheres dis-
persed through the matrix with high strength, flexibility,
and thermal efficiency. The tangent ends of the inner
and outer bends are held rigidly, ensuring the assembly
tolerances achieved at manufacture are retained when
the unit is transferred to the welding contractor for
incorporation into the pipeline spool or riser.
For the insulation to be effectively deployed, provid-
ing consistent thermal performance, the annular gap
throughout the assembly must be uniform. In this
instance, it is important that the manufacturing toler-
ances of the pipe and bends are controlled closely.
Steel pipe and bend manufacture
Together with Tata Steel, Eisenbau Krmer (EBK)
and the pipe bending plant of Salzgitter Mannesmann
Grobblech (SMGB) have developed a series of controls,
including a process and measurement system, to ensure
all bend dimensions are controlled closely and mating
bends can be produced, matched, and paired so the
most accurate assembly is produced.
In respect to the process-related thinning in the extra-
dos of the hot induction bends, the wall thickness for
the inner and outer mother pipes was increased accord-
ingly. To match precisely, the mother pipes have been
manufactured with the same ID as the riser pipes.
EBK supplies Tata Steel with mother pipe, which has
material properties that allow formation through hot
induction bending. The main material challenges are
to ensure the mechanical properties are suitable after
bending. Therefore SMGB is taking responsibility for
the chemical design of the prematerial. This also involves
the consideration of a series of heat treatment and form-
ing processes. Eisenbau Krmer uses a multipass welding
process and steel plate from premium mills in Europe.
The manufacturing process at EBK generates pipe
of the closest dimensional control through a series of
cold-forming and sizing operations such as external
calibration.
At the SMGB pipe bending plant, these special mother
pipes are bent by hot induction bending. Heat is applied
through electrical induction to the mother pipe materi-
als, and the pipe is slowly formed, giving the correct
geometry. In most pipeline applications, the critical
dimensions are the positions and attitudes of the ends
of the bends (center-to-end dimension) maintaining
the overall geometry of the pipeline.
However, with pipe-in-pipe bends, it is important that
the bend radius is accurately controlled to ensure the
two bends can be integrated. The precise dimensions
after bending also need to be maintained following heat
treatment. For the inner clad bends, a full body quench
and temper (QT) heat treatment is applied at the SMGB
bending mill to guarantee homogenized material prop-
erties for the bends, fulfilling mechanical and corrosion
requirements.
HP/HT material properties for pipe-in-pipe
Additional material complexities also have to be over-
come. Generally in HP/HT lines, there are challenges
because of corrosion, low temperature toughness, and
strength. These parameters require careful material
selection to maintain the balance of properties from the
outset through to bend production.
Thermal stresses need to be managed as the loads are
shared between inner and outer pipe. In addition, insu-
lation can lead to extreme temperature being retained
in the pipe materials during operation and shutdown
that can form challenging conditions for conventional
steel products.
HP/HT well environments present some of the most
challenging and technologically demanding conditions
for field developments, not least because the properties
in each reserve present significant challenges in terms
of material selection and design.
Tata Steel and its supply partners have expanded capa-
bilities further with the design and creation of cost-effec-
tive insulated pipe-in-pipe bends for risers and spools
once considered too difficult to accomplish.
FLOW ASSURANCE &
Two 16-in. clad bends are illuminated in the quenching tank
after austenitization at a pipe bending mill.
62-63 FlowSandWater-Tata_Layout 1 10/23/11 2:12 PM Page 63
64
UNCONVENTIONAL:
WOODFORD
TOP 12 WELLS
Flow Operator Well # Country, State Section Date
14.8 MMcf/d BP America Production Co. 1-1H Schmitt Coal, Okla. 1-3n0-11e Nov. 2009
12.1 MMcf/d Newfield Exploration Co. 1H 27 Castillion Pittsburg, Okla. 22-6n-14e April 2010
10.8 MMcf/d Continental Resources Inc. 1-1H Blevins Hughes, Okla. 1-6n-11e Nov. 2008
9.38 MMcf/d Newfield Exploration Co. 2H-31 Hedgecock Coal, Okla. 30-2n-11e March 2009
9.34 MMcf/d Kaiser-Francis Oil Co. 2-6H Nelson Pittsburg, Okla. 7-3n-12e Oct. 2010
8.53 MMcf/d PetroQuest Energy 1-34H Dash Ranch Pittsburg, Okla. 34-7n-14e April 2011
7.54 MMcf/d Cimarex Energy Co. 1-25H Draper Canadian, Okla. 36-14n-10w March 2010
7.1 MMcf/d Kaiser-Francis Oil Co. 1-13H Harlow Cunningham Coal, Okla. 23-3n-11e Dec. 2010
7.05 MMcf/d QEP Energy 1-23H Austin Canadian, Okla. 23-12n-10w Jan. 2010
7.02 MMcf/d Cimarex Energy Co. 1-32H Hartz Canadian, Okla. 6-12n-9w March 2010
6.99 MMcf/d Newfield Exploration Co. 1H-7E David Hughes, Okla. 19-5n-11e April 2010
6.8 MMcf/d Continental Resources Inc. 2-22H Young Blaine, Okla. 22-13n-11w June 2010
(Image courtesy of UGCenter.com; Source: IHS Inc., August 2011)
Oklahomas back yard
turns up world-class resource
Source of the deepest active shale play in the US delivers liquids-rich pay.
O
klahoma, the sixth largest oil-producing state and
home of the Cana Woodford the deepest active
shale play in the US, according to Devon Energy Corp.
is experiencing an uptick in hydrocarbon production
amid the shale gas bonanza. Independents like Okla-
homa City-based Devon have gradually streamlined oper-
ations (the company announced plans to shed all its
international and Gulf of Mexico assets in 2010) to focus
on near-term, lower-risk unconventional assets onshore.
In Devons case, the company is building up its
drilling inventory in the Woodford shale play, focusing
on the liquids-rich window where the company has been
credited with having discovered a world-class resource
after drilling its first Cana well in 2007.
Part of the greater Late Devonian/Early Mississippian-
age Woodford formation in the Oklahoma Anadarko
basin, the Cana play is an overpressured reservoir that
grades from dry gas to wet gas to oil. The rich gas shale
ranges from 31 m to 91 m (100 ft to 300 ft) thick, with
a vertical depth in wet areas from 3,048 m to 4,267 m
(10,000 ft to more than 14,000 ft). It comprises a 2,590
sq-km (1,000 sq-mile) area covering Blaine, Caddo,
Canadian, and Grady counties, roughly 80 km (50
miles) west of Oklahoma City and also extends into
the West Texas Permian basin.
Brian Cardott, organic petrologist with the Oklahoma
Geological Survey, distinguishes the Anadarko Wood-
ford as one of four distinct hydrocarbon plays in Okla-
homa, in this case condensate, with a thermal maturity
of 1.1 to 1.5% Ro (vitrinite reflectance). As of December
2010, total vertical depths of 87 Woodford shale wells in
the Cana play range from 3,380 m (11,075 ft) to more
than 4,200 m (14,000 ft), according to an AAPG article
by Cardott. Eighty-six of these were drilled horizontally
with lateral lengths ranging from 680 m to 1,990 m
(2,230 ft to 6,536 ft) and initial potential oil and gas
rates ranging from 2 to 310 b/d and 668 to 8,367
Mcf/d, respectively. Oil and condensate gravities
range from 45 to 65API.
While the greater Woodford arguably has less resource
potential than other prolific US shale gas reservoirs, the
plays economics, particularly in the Anadarko basin,
remain solid enough to convince operators like Devon
Nancy Agin, Associate Editor
64-68 Uncon-Woodford_64-68 Uncon-Woodford 10/21/11 11:39 PM Page 64
Who likes
theirs
well done?
At Stallion, we dish out the services that make
your wellsite run
,
so your crew can focus on the
things that matter most.
Accommodations. Solids control. Construction and communications services.
Lots of little things on the wellsite can distract your crew and take the focus
away from the well itself-and the big picture.
Stal lion Oilfield Services takes care of all these tertiary services
,
including:
Onshore and Offshore Accommodations Solids Control Camp Comp lexe s
Wellsite Construction Production Services Marine Services
Wellsite Communications Rental Equipment Fluid Transport and Logistics
When you need to make sure your viellsi*.e is done j ust right ,
call Stal lion Oilfield Services at 713.528.5544.
staywe llfocused.co m
AA2,
.
'
i
i
Vi
a-
to strategically reposition and divert more capital toward
exploiting its unconventional potential.
Devons 12 Tcfe discovery
According to Kris Goforth, Devon vice president,
Anadarko Basin, the Cana play idea was generated in
2005. At that time, the company had 25,000 legacy acres
in the Anadarko Woodford. Driven by success in the
North Texas Barnett shale, Devon began leasing addi-
tional acreage, and by the time the first horizontal wells
were drilled to test the play, the company had amassed
an aggregate 64,000 acres.
In August 2007, Devon spudded the first Cana shale
well in Canadian County.
Now Devon has 243,000 acres and 320 producing
wells, both operated and nonoperated. And its Cana
position is estimated to contain nearly 12 Tcfe in total
resource (nearly 2 Bbbl of oil), with more than 81% of
the companys acreage rich in liquids. A large majority
of this acreage, Goforth said, will be held by production
by year-end 2011.
To put it in perspective, five years ago Cana was an
idea, four years ago zero wells were drilled, three years
ago two wells had been drilled both with technical
challenges and two years ago Devon had six rigs run-
ning, she said. Entering 2011, Devon had 23 operated
rigs running in the Cana Woodford, which was reduced
to 17 at press time.
As its current strategy, the company continues to delin-
eate and derisk its lease position, high-grading develop-
ment in areas showing the most liquids potential.
Results in the exceptionally deep shale, which was
uneconomic less than five years ago, have been impres-
sive. For 2Q 2011, Devon reported record net produc-
tion of 189 MMcfe/d in the Cana (including 9,000 b/d
of liquids), representing a 17% increase over 1Q 2011.
We expect that figure to reach 275 MMcfe/d by year-
end, Goforth said.
The resource is substantial, she added, and offers
repeatable drilling success with an inventory of more
than 5,400 drilling locations.
Goforth credits increased production to technological
improvements in E&P. Devon has leveraged its success
from technologies learned operating in earlier and shal-
lower shale plays, such as drilling rig and bit technology,
fracture stimulation, the use of 3-D seismic, well-flow
techniques, pad drilling development, and cross-unit lat-
erals, she said. We extended these practices into the
Cana area, both refining and revising techniques for its
unique challenges.
Long laterals and multiple-fracture, higher-pressure
stimulations are two applications that have continued to
shape Cana shale development, and efficiency gains such
as reduced stimulation days and improved average drilling
feet per day are helping Devon set company records. The
operator recently drilled its longest Cana well to date to
6,410 m (21,010 ft) total vertical and horizontal depth.
Ultimately, what Devon has jumpstarted in the Okla-
homa Woodford shale has provided an abundance of
good opportunities, according to Goforth, and the Cana
play competes well with other unconventional assets in
the companys portfolio. A well drilled in the liquids-
rich area of the play, for example, will generate a finding
and development cost of US $6/Boe to $8/Boe and an
after-tax rate of return of more than 30% based on a
Henry Hub gas price of $3.50/MMBtu, she said.
Unconventional onshore plays like the Woodford
provide investment flexibility and less political risk,
66
UNCONVENTIONAL:
WOODFORD
Oklahoma-based independent Devon started the year with 23 oper-
ated rigs running in the Cana Woodford. The companys strategy is
focused on delineating and derisking its substantial lease position in
liquids-rich areas of the play. (Photos courtesy of Devon Energy)
Q:
Who'll MAKE THE MOST in shale?
A: The company that MANAGES COSTS.
From the best map data to software that maximizes
the value of your spend and keeps you in compliance,
P2 Energy Solutions has the rig ht package to fit your
company, large or small.
It
'
s never too late to MANAGE YOUR COSTS.
Find out more by downloading our complimentary white
paper, "Squeezing Shale Plays for Higher Shareholder
Return
"
at www.p2energysolutions.com/shale.
Houston Denver Fort Worth San Antonio Calgary Dubai, UAE
Ph. 71 3.481.7000 :1h.3 :97.0090 1 r .1000 Ph. 0 =0:.4x00 I i .774.1000 F' . +9,1 4 3910231
www. p2ener gysoIut i ons. com
e
r
?
s
w
w
^
S
??
n a
-0
6
0000
,
1
?'
68
Goforth said. During lean times, she explained,
investment can be scaled back.
It is also a source of pride for the Canas lead-
ing producer. Devon has discovered a world-
class resource of 12 Tcfe more or less in our
back yard, she said.
Oklahoma is OK
In late 2010, Devon completed a plant capable
of processing 200 MMcf/d of gas to handle high
liquids content generated by the Anadarko
Woodford. The plants capacity can be tripled
through future expansion as production grows,
and Devon already has announced plans to add 150
MMcf/d of processing capacity for $125 million to
meet the Canas high production growth rate. The
expanded Woodford plant also will be able to process
27,000 b/d of liquids by 4Q 2012.
Although it has less resource potential, the Woodford
could peak in the next decade at approximately 1.1
Bcf/d, according to an unconventional resources report
published by Hart Energy Research in January 2011.
Meanwhile, wet gas areas like the Cana shale will con-
tinue to drive new exploration and revenue growth in
Oklahoma, unlocking a wealth of domestic resources
used for clean-burning fuel.
UNCONVENTIONAL:
WOODFORD
Devon recently drilled its longest Cana well to date to
6,410 m (21,010 ft) total vertical and horizontal depth.
Innovative Pro t TechnoIo
Get the Most From Your
Shale Frac Treatments.
Momentive (formerly Hexion)
is the world's largest supplier of
high strength and innovative
proppant technologies.
Now, by leveraging Momentive's
technology from other industries,
we are developing advanced resin
coated proppants to optimize
well production and help you...
Get the Results You Expect
.
t
19 W
?.
?
Visit Us at DUG East
15 - 17 November Pittsburgh, PA
kemlcat5 Inc., Odndk TecMdlx?y Gr
It,C1bv11K4,111C .
i l l aM 91 ar$ nadEn
MOMENTI I`E-
E
liminating unacceptable levels of nonproductive
time (NPT) associated with retrievable bridge
plug operations is vital in well interventions at any
depth. This is especially true in deepwater wells where
increased cost and complex logistics put operational
efficiency at center stage.
Historically, retrievable bridge plugs were designed to
meet individual manufacturers standards, which led to
widely varied performance and gave rise to inconsistent
levels of NPT during interventions.
As costs associated with every facet of E&P continue to
escalate, there is a need to cut money lost through NPT
resulting from unreliable bridge plug operations.
Rising to the standard
In an effort to improve operational efficiency, a major
North Sea operator decided to introduce ISO 14310
qualification testing as a minimum standard for its
projects using retrievable bridge plugs. This action
prompted vendors, led by Interwell, to qualify their
plugs to the most stringent testing regime.
The ISO standard was developed to enhance the
reliability of isolation barriers, including retrievable
bridge plugs with a range of validation grades, provid-
ing improved clarity and assurance for the operating
company. The different validation grades set test crite-
ria and minimum quality assurance specifications,
which typically require pressure and temperature
cycling with defined maximum leak rates. Successful
installation and retrieval are an integral part of the
acceptance criteria.
Most plug manufacturers found it extremely difficult
to qualify their existing plugs to this new standard.
This was part of the impetus for Interwells designing
a new range of plugs to meet the exacting standard,
incorporating features that enhanced plug component
integrity and reliability. The design features are intended
to make the new plugs more operationally efficient. As a
base standard, each plug should take one run to set and
one to retrieve it.
Size matters during interventions, and Interwells
design team focused on the need to ensure that the
products were as slim as possible, which greatly increases
the likelihood that they can be delivered reliably to the
desired depth and retrieved through the wellbore.
The ultra-slim HP bridge plug was designed to provide
a reliable barrier in extremely high-pressure conditions.
(Images courtesy of Interwell Ltd.)
69
DEEPWATER
INTERVENTION
Jim Laidlaw, Interwell Ltd.
Bar set higher for deepwater,
complex well interventions
Intervention challenges have increased the focus on operational efficiency.
69-71 Deepwater-interwell_Layout 1 10/23/11 2:22 PM Page 69
70
DEEPWATER
INTERVENTION
The ongoing development of standards has been
driven by operators as they strive to improve the relia-
bility and integrity of wellbore barriers, which are of
critical importance in deepwater and HP/HT appli-
cations, where failures can result in more complex
and time consuming recovery.
Increasingly, operators demand that equipment is
qualified to an industry standard, and new ratings
continue to emerge, including API 11D1, which allows
for monogramming of plugs to further assure quality
and status.
An aging well stock brings with it increasing uncer-
tainty on potential wellbore restrictions during interven-
tion operations. This uncertainty can be mitigated by
minimizing the diameter of bridge plug equipment.
Typically, this would result in a compromise on the plug
pressure and temperature rating; however, Interwell
applied its patented element support technology to
overcome the challenge.
Creating a solution
The 3.5-in. OD retrievable mechanical plugs were
designed to be set inside 7-in. liners, and 2.8-in. OD
plugs have been placed and tested successfully inside
5.5-in. tubing, both of which were qualified to the ISO
14310 standard.
The company has continued to refine and further
develop HP/HT bridge plugs, which are tailored to sat-
isfy the most common completion and liner sizes used
in deepwater wells worldwide and can operate in tem-
peratures to 200C (392F) and up to 15,000 psi.
Interwell unveiled the worlds first high-pressure (HP)
retrievable bridge plug capable of withstanding a differ-
ential pressure of 15,000 psi at the Offshore Europe con-
ference in Aberdeen in September 2011.
The ultra-slim, 2.2-in. OD HP bridge plug was designed
to provide a reliable barrier in extremely high-pressure
conditions. The ISO 14310 qualified tool contains an
innovative packer backup design that both compresses
and constrains the element, reducing the risk of extrusion
in extreme conditions and enabling operation to 15,000
psi. The ultra-slim design reduces the risk of deployment
and retrieval through narrow wellbore restrictions, a cru-
cial operational benefit in HP/HT wells.
With a range of plug sizes for 3
1
2 in. to 7
5
8 in. casings,
the ultra slim HP/HT plug design is a barrier solution
for wellbores with any form of restriction, allowing it to
be deployed reliably to the desired depth.
The plugs have been designed for use as both
shallow and deep barriers, making them ideally suited
to workover applications. They also can be used to
anchor injection valves and equalization devices.
The tool can be run on slickline, e-line, coiled
tubing, or pipe and features a scale tolerant slip design
ensuring that it adequately grips the casing. Interwell
has in-house testing facilities where plugs and packers
can be qualified to the ISO 14310 V0 standard.
Reliability and quality assurance are the cornerstones
of all intervention technology. Delivering plugs to ISO
and APIs rigorous standards requires consistent testing.
The company presently runs 500 plugs each year, often
in challenging well environments, and has carried out
more than 100 ISO tests to deliver to those standards.
Setting the bar higher
The challenge for the industry is to embrace the oppor-
tunity presented by Interwells field proven high expan-
sion barrier technologies. Through operating company
participation and support of R&D, there is an opportu-
nity to create the next generation of ultra HP/HT barri-
ers that goes beyond 15,000 psi and 200C.
Vendors should recognize the need to tailor and
qualify products for deepwater interventions with a
focus on the individual requirements of the operator
and its asset. When responding to bespoke design chal-
lenges, often with short lead times, it is still important to
satisfy the qualification standards which aim to ensure
the plug design is fit for purpose.
Well isolation challenges in deep water can be met
only through rigorous qualification testing and tailoring
of existing technologies to meet exact well specifica-
tions. When international standards are applied, opera-
tors will benefit from an increase in integrity assurance
and reduced NPT.
The ISO 14310 qualified tool contains an innovative packer
backup design that both compresses and constrains the
element, reducing the risk of extrusion in extreme condi-
tions and enabling operation to 15,000 psi.
69-71 Deepwater-interwell_69-71 Deepwater-interwell 10/21/11 11:39 PM Page 70
69-71 Deepwater-interwell_69-71 Deepwater-interwell 10/21/11 11:39 PM Page 71
HONORI NG THE I NDUSTRY' S BEST
Q.1
11 1
4?VAT
I
TIA
R
N
I
II?
SPECIAL MERITORIOUS AWARD FOR ENGINEERING INNOVATION
NEW TOOLS F- MODEL -
TOOL SOLUTIONS z GROWTH gpAND
o
REVOLUTION
U
VALUE
H GENERATION
..NETZE SMART M:
ENERATION d
MARKET
AEr
-
-
RESEARCH
p
i
MO
L
DM
N
G T
Ln?
=ROBOT
0Q
ww
> SOLUTI
ONS?WD
EVE LOPM ENT
G
te
UGROWTHco w
a Q INTELLECT
SOLUTIONS
Q TOOLS
Z
PROJECT
c ZJMARKET
^' ^
w SOURCE
,
O
2 a C J
SMART N
,^
o
VALUE
?w? > TREND
$
?
-PAT ?IIT?TOOL O
NEWw? b ( 1
TOOLS 2 a MODEL O Z 00 GENERATION - VALUE z MODEL d NE E N 9 w
O-
V
E
?
I N NOVATION
- ' N
TREND a
SOURCE
GROWTH
-W TREN D ~
MODERN
z
Z
PRODUCT
vza
TO
NET
OL
IuI
?
GENERATION Z
VALUEo5,OHBRAND
W LU
TOOL
m= wo w
w? o
c VALUE-'
?
o , ROBOT
O
o?
PATENT
=
MODEL J
LEADING
Q
Cr
SOLUTIONS a RESEARCH
o
U
=
_-
" NEW
TOO L z S O URCE
BUSI N ESSZ1
Z MARKET
o
6 Z LEADING x SMART L? l7
1. .`
o f
NET
DATA
v
z
GROWTH
M
SOLUfl NS-
TREND
Ln Q
w
F- BRAND 1 PROCESS
Q
BRAND
?J
LEADING
L
j
NET
Noem
Z IDEAS
I-
Z
I-
O J LLl
J
=
Q
6
BRAND
NET
VALUE I- 1NEN[
U
z
W
z
L_j
T
,
E MODEL oTOOL
5 INTELLECT
Q o MARKET H
NEW
W z
TOOLS d MODERN O CD
Z
ZD
BRAND
w
w
N? N
SOURCE
- GROWTH
LEADING
MODEL a
Z
U
R
NEW
VALUE o GENFM qN a 0 PA ENT
SMART
ROBOT
NEw
Z s
5 IDEAS m TOOLS
P
LU a:,,
W
<
0
TOOL ~
ZYz
Ln R PROJECTzGROWTH RESEARCH
UNEW _
j
'^
IL' GENERATION MARKET
?5PATENT
INTELLECT
LEADERS H 1 P v PROCESS
F
<?
INTELLECT V GROWTH
w z
ROBOT
SOLUTIONS
SOURCE
E
L1J RESEARCH Z 0
VALUE
?
Y 'IDEAS
- VALUE
GENERATION
RRAND t g
TREN
'"JIXL
TOOL
O LEAD I NGa
u
Honoring the industry
'
s best new tools and techniques
for finding , developing and producing h
y
drocarbons.
Submit entries online at
epmag. com/mea
Deadline:
December 31, 2011
F
or 50 years the Johnson Space Center (JSC) in Hous-
ton has routinely created technology to enable the
quest for space exploration. From Gemini to Apollo to
the space shuttle, the center has provided break-
throughs to support NASAs space missions.
But now NASA has taken a step back. The last shuttle
mission took place earlier this year, and other than sup-
porting the International Space Station along with 15
other countries, most of the work at the JSC is looking
further into the future, perhaps at deeper manned
space flights that are years away from liftoff.
Although thousands have been laid off post-shuttle,
the JSC is not closing its doors. In fact, it is opening
them to industries like oil and gas.
Industry collaboration
Recently the JSC formed the Strategic Opportunities and
Partnership Development Office (SOPD) to showcase its
R&D capabilities in hopes that other industries will come
to the center to partner in research projects or work on
similar problems. While some NASA astronauts are accus-
tomed to working in a vacuum, this approach is less suc-
cessful in R&D.
No one advances technology or commercializes it with-
out some form of collaboration, said Yolanda Marshall,
SOPD manager. We would never have gone to the moon
without our contractors, and what weve learned in space
has a lot of uses here on Earth.
The JSC has been charged with a 14-tier technology
roadmap to help further understanding of such chal-
lenges as power and energy storage, robotics, sensor
systems, and nanotechnology (Nasa.gov/offices/oct/home/
roadmaps/index.html). With that outline as a guide, Mar-
shall said, JSC officials decided to partner with industry as
well as academia and government to have resources, both
intellectual and collaborative, to further this research.
We examined our capabilities and picked five indus-
tries with which to collaborate, including oil and gas,
medical, and transportation, she said. It wasnt an arbi-
trary thing we want that synergy. We looked for indus-
tries with areas of common interest where we thought
both sides would benefit from working together.
What JSC brings to the table, in addition to some very
intelligent people, is a fantastic campus in which, over
the years, space technologies were developed that have
affected the lives of nearly everyone on earth. Already the
center is conducting research into battery technologies,
hydrogen and methane storage, membrane-based water
purification systems, petroleum deposit survey and evalu-
ation, and improved ground-penetrating radar, among
other energy-related projects. Two of its facilities have
exciting potential for further E&P research, Marshall
said the Neutral Buoyancy Laboratory (NBL) and the
Advanced Water Recovery Systems Development Facility
(AWRSDF).
NBL
The NBL is used to train astronauts for extravehicular
activities (EVAs). Shuttle astronauts performed hundreds
72
An astronaut prepares to be lowered into the water at the Neu-
tral Buoyancy Laboratory. (Images courtesy of NASA)
They came from outer space
Great technologies, that is. Now the Johnson Space Center is looking for
industry partners to explore the next frontiers.
Rhonda Duey, Senior Editor
tech
WATCH
72-75 TechWatch-NOV_72-75 TechWatch-NOV 10/21/11 11:39 PM Page 72
73
of EVAs during the programs existence,
and it was important to accustom them
to the feeling of being weightless for sev-
eral hours at a time.
Tied by the Earths gravity, astronauts
can only experience weightlessness in
two ways hurtling vertically downward
in a jet (affectionately known as the
vomit comet) or training at the NBL.
As one might suspect, the latter involves
a very large pool (holding 6.2 million
gallons of water) that is deep enough to
house a mockup of the shuttles and
space stations exteriors to practice EVAs.
The astronauts perform their training
in their space suits minus the electronics.
The suits are pressured and weighted to ensure neutral
buoyancy so that the astronauts do not float up and down
in the water column. Divers are on hand at all times to
assist in the training, and audio and video monitors allow
technicians in the control room to monitor progress.
The NBL still trains astronauts for EVAs on the space
station, but Robert Durkin, chief of the NBL, said he and
his staff are mostly in maintenance mode. With the end
of the shuttle program, there will be fewer EVAs, he said.
So to maintain this facility, were looking toward external
customers to offset the cost. Its the next chapter.
In addition to the pool, the facility houses a control
room, communication systems, closed-circuit TVs, a light
manufacturing facility, overhead cranes, a water treat-
ment system, and breathing gas. Potential commercial
uses include offshore safety and survival training, under-
water training, public safety diver training, blackout envi-
ronment simulation, engineering verification, space flight
testing and training, video documentation and film pro-
duction, human factor performance, robotic vehicle test-
ing and prototyping, and hardware mockup.
AWRSDF
Water is becoming an increasingly valuable commodity,
and any technology that can stretch its use is worth pursu-
ing. On the space station, water recovery and reuse is so
efficient that 85% of used water can be recycled to a clean
enough state that it is drinkable.
There are effectively three waste streams on board a
space vessel urine; wastewater from showers, sinks, etc.,
which typically have surfactants; and solid waste. Forward
osmosis/reverse osmosis technology is an emerging tech-
nology being studied to recycle the water streams.
In forward osmosis, soapy wastewater is transferred
across a membrane into a salty brine using little energy.
The membrane captures the soap particles, and the salty
water is then processed through reverse osmosis, recover-
ing the clean water.
According to a test facilities guide, the AWRSDF is a
facility for all types of spacecraft water recovery systems,
including wastewater stabilization, primary processor
technologies, brine water recovery, post-processors, water
filtration, and personal hygiene. Within the lab is a
Biosafety Level 2 microbiology lab where advanced
potable water disinfection technologies are tested.
To support wastewater testing, the AWRSDF also con-
tains the Wastewater Collection and Transportation Sys-
tem, where prospective crew cleanser products are used
by volunteers to produce simulated spacecraft water.
While the current recycling technology works well on
the space station, researchers are examining additional
options that would use less power and stabilize the waste-
water with fewer toxic chemicals.
Between 2018 and 2020, were going to a bio-based sys-
tem, said Karen Pickering, group lead for the AWRSDF.
The problem is going to a smaller system.
Water recycling has obvious applications in the North
American shale plays, but scaling any of these systems
wont be easy. NASA likes to keep things small. Success-
fully treating hundreds of thousands of barrels of frac
water at the wellsite will remain a challenge.
Other uses of the technology are not so far-fetched. Off-
shore platforms, while not as remote as the space station,
are often dozens, if not hundreds, of miles away from
land. Recycling more of the water used onboard the plat-
form could save money and lead to a greener footprint.
These centers are just two of many sources of poten-
tial technology transfer between aerospace and energy.
For more information about the JSC initiative, visit
Nasa.gov/centers/johnson/partnerships/index.html.
Divers assist an astronaut
during training.
72-75 TechWatch-NOV_72-75 TechWatch-NOV 10/21/11 11:39 PM Page 73
72-75 TechWatch-NOV_72-75 TechWatch-NOV 10/21/11 11:39 PM Page 74 72-75 TechWatch-NOV_72-75 TechWatch-NOV 10/21/11 11:39 PM Page 75
David L. Lawrence
Convention Center
Pittsburgh, PA
FM I L iRGES
unconventional resource event in th
iss the industry's most exciting conference! Confirmed speakers for DUI
i acres in the Marcellus and Utica shale plays, and are running 40+ rigs.
ator of the EPA review the federal v '
? r e F.
ream Worksho examines
and opportunities for future growth, with detailed
p
rojects across the Appalachian Basin.
Environmental Workshop - Marcellus oil and gas operations draw scrutiny from communi
stakeholders, so knowing the rules is critical. This workshop focuses on safe
environmental and development procedures from planning through
site
remQrJ1-qt;r%n
For more information and to register
visit: dugeast.com
PRESENTED BY
HART E NE RGY
PLATINUM SPONSORS
ryas
BAKER
HUGHES
ENCAP INVESTMENTS L.P.
API-
0 hjjc
;42?
h
e
C
u
s ES
atured
h Speake
-
A medK;
Nicholas J. Deluliis Dan 0.Dinges Matthew D. Cabell
David L. Porges
Jack M. Lafield
President Chairman, Presient President
President, CEO
President and CEO
CONSOL Energy,Inc. and CEO Seneca Resources and Chairman
Caiman Energy LLC
Cabot Oil & Gas Corp. Corporation
EQT Corporation
NET
GEO1&Gos
H
HALLIBURTON
W
8 ASOCIATl55 C. W ms.
Tenaris
Ma
, :mSemi- LLC
4?
S
E
ELECT
SER VICES
TTRA
AI MA N ENERGY
CDISEALS >
V
Tri pomt uc
SUPERIOR
J?ULE
,Stallion ^ o
EAM
PHCN I SISGIi ( a
, W
Dura-Bond Industries
Fuoro
10
1oba1`
FTS INTERNATIONAL
JASON
YoyapalOsmuery Be Right
ProTechnics IlUdUhO11
?P
Investor 115
MIDSTREAM
E QT ER m..?. sai osa.n.
Rurusrrs
RAN
HEnterprises
IRG
u?
RigNet
eclipse
?UnitedVision
\
Vtf
l n C
M
C
U. S. Steel
Imcr( isms
'"""'ar
TGS)
h1
r
PRECISION
/ .?
GEOPHYSICAIex
+
did 6
arceiius
Fe
gas com-
Lunc
.
Midst
SPONSORS
t
I
Att
Dr. Edwin E. Cohen
President and CEO
the financial foundation of the midstream sector
ipdates on pipelines and processing Infrastructure
???? ?
Schlumberger
ROYALTIES
k. -M
,
) Ea urtnug
".?. .
Holland
w ,u.,
s Ea v c [ ? NOEILE , INC.
n.v... .?,...u . . . ,
SQL 0VS
441DO'
J?DRAGON
Riser system model-
ing software tackles
deep water
The next generation of
riser design and analysis
software by Wood
Groups MCS Kenny pro-
vides expanded analytical
and modeling capabili-
ties for offshore and sub-
sea applications.
The solution was
enhanced because of
increased design require-
ments associated with
multicase extreme and
fatigue sea state loading
conditions and is now
40% faster on average
than the previous ver-
sion, the company said. Benefits include an automatic
mesh-creation facility to expedite the model creation
process, a live structure preview facility, an integrated
keyword editor, and a summary post-processing colla-
tion facility. Additionally, the analysis software features
sliding pipe-in-pipe contact and improved internal fluid
and slug flow modeling. Mcskenny.com.
Analysis tool improves GoM bidding odds
SmartZoft Decision Tools of Denver, Colo., has updated
the SmartBid software platform to provide cost-effective
competitive analysis within the Gulf of Mexico (GoM) bid-
ding environment. Using an array of variables, including
companies historical bidding strategies, the analysis tool
can increase the likelihood of winning blocks of interest
while lowering the odds of overbidding, the company said.
SmartBid Version 3.2 software includes:
Lease ownership module. Accesses all GoM active and
inactive lease information, including well and plat-
form data as well as lease and bid information
updated in real time. Data are available in tabular
form or plotted in color on a map with user-selectable
subsets for focusing on specific areas, plays, or key
competitors;
Competitive analysis module. Includes trend analysis
that summarizes companies bidding behaviors over
time. Winning bids, over bids, and success rates can
be analyzed;
Econometric analysis module. Reveals the likelihood that
a block will receive a bid and predicts the bid value.
Users can input projected wellhead prices for oil and
gas as well as estimated mean range of values (MROV)
from BOEMRE (recently divided into the BSEE and
BOEM). These parameters have special significance in
computing likely bidding activity; and
Forward-looking decision analysis module. Combines the
probability of winning at alternative bid amounts with
the users estimated value of the block to compute an
optimal bid amount.
According to the company, operators that have used
SmartBid have found lease and bid data much easier to
access, analyze, and manage. Smartzoft.com.
High-temperature roller cone technology
advances downhole
Smith Bits has developed the new Kaldera advanced roller
cone products for drilling operations in challenging high-
temperature conditions.
According to the Schlum-
berger company, the new
roller cone technology
features specialized
elastomer seal com-
pounds and propri-
etary grease reservoir
components that
enable it to function
reliably in downhole
conditions where
temperatures range
from 149C to
>260C (300F to
>500F). The seals
are made from
fabric reinforced elastomer composites formulated
from fluorocarbon materials that provide excellent ther-
mal stability and wear resistance and bear mechanical
properties well suited for high-temperature environ-
ments, the company said. An innovative grease com-
pound used to lubricate the seal/bearing system also
was developed from selected synthetic base oils and
various functional additives to increase load capacity
at elevated temperatures.
Smith Bits has deployed the Kaldera roller cone prod-
ucts in high-temperature applications where temperatures
have exceeded 260 C, and, according to the company, the
technology has demonstrated both bit performance and
reliability improvements during field trials. Slb.com/bits.
GPS fleet management platform tracks assets
Oil and gas customers can better manage assets such as
trucks, well heads, and pump jacks remotely with real-time
Incorporating user feedback, the
Flexcom Version 8 software allows
for greater flexibility while model-
ing the characteristics of oil and
gas riser systems in deep water
and other harsh environments.
(Image courtesy of MCS Kenny)
The Kaldera advanced roller cone prod-
ucts are tailored for geothermal and
high-temperature drilling applications.
(Image courtesy of Schlumberger)
76
tech
TRENDS
76-77 TechTrends-NOV_76-77 TechTrends-NOV 10/21/11 11:39 PM Page 76
77
tech
TRENDS
data and reporting by aligning their geographic informa-
tion system (GIS) mapping technology with the NexTraq
Fleet Tracking platform, according to the technologys
provider. The fleet management web services offering
marks NexTraqs entry into the oil and gas sector.
NexTraqs open platform integrates GIS mapping with
GPS fleet tracking for remote monitoring, enabling fleet
managers to upload and view points of interest using GIS
maps and by overlaying GIS data. Its map layering technol-
ogy allows managers to set up accurate geofences and
zones that provide time arrival and mileage notifications
to help managers mitigate downtime while also increasing
operational efficiency and costs savings. In one applica-
tion, a customer saw a 25% increase in driver productivity
after integrating GIS mapping with the NexTraq fleet
tracker, the company said. Nextraq.com.
AIS solution improves
seismic streamer operations
Kongsberg Seatex has developed an AIS solution to
improve of maritime seismic operations safety by monitor-
ing and displaying the size and shape of seismic streamers.
Seismic surveys can be challenging due to the large size
of a 3-D or 4-D streamer spread typically 6 km to 12 km
(4 miles to 7.5 miles) in length and up to 1 km (0.62
miles) in width which can restrict the seismic vessels
maneuverability in areas of high shipping activity.
Providing greater flexibility and improving visibility in
the survey area, the Kongsberg solution uses AIS technol-
ogy and AIS standard compliant functions that enable
the seismic vessel to broadcast its operational coordinates
along with the size and shape of its streamer spread, which
can be viewed on AIS-compatible ECDIS displays onboard
the areas surrounding vessels. Kongsberg.com.
Integrated engineering tool
reduces project risk, cost
A new engineering design and information manage-
ment solution released by Aveva Engineering offers
project engineers an integrated workflow while also
improving project efficiency and reducing engineering
and design costs, the company said.
The Aveva Engineering technology uses a proven and
scalable database approach to deliver a multidisciplinary
working environment required by specialist engineering
teams working concurrently on facility and marine proj-
ects. The platform features an accessible user interface
based on Microsoft Office Fluent with built-in spread-
sheet style tools, and full status control of each disci-
pline gives engineers better visibility of the quality of
information in the database.
According to Aveva, users can benefit from more
effective management, control, and data exploitation as
well as a reduced impact of change on cost, schedule,
quality, and risk as changes can be implemented and
communicated quickly. Additionally, a wider range of
data inconsistencies can be detected and aligned during
the design phase with greater ease using its advanced
programming technology. Aveva.com.
New plug-ins help derisk exploration prospects
The Play-to-Prospect Risk plug-in for the Petrel E&P
software platform provided by Schlumberger is an inte-
grated petroleum system-based assessment used to stan-
dardize the method for evaluating study areas and
increase the understanding of geological scenarios to
determine the probability of risk and success.
The risk assessment technology converts trap, reser-
voir, charge, and seal into chance maps through a suite
of transform methods to determine play limits and iden-
tify area upside by calculating the mean economic case
for potential field development and the probabilistic
economic resource case.
Additionally, the new Prestack Seismic Interpretation
plug-in for Petrel improves understanding of petroleum
system elements such as charge, risk, and trap definition
and complements the Play-to-Prospect Risk offerings
exploration capabilities. Benefits of the WesternGeco
technology include analyzing prestack gathers to inter-
pret processing effects on post-stack data, evaluating
response differences in offset traces to assess fluid
effects, making on-the-fly offset stacks to create clearer
partial stacks of interpretation targets, and interpreting
and auto-tracking directly on prestack data for better
horizon definition, the company said. Slb.com.
The Aveva Engineering advanced technology improves project
management, enabling specialist engineers to retain full control
of multidisciplinary information. (Image courtesy of Aveva)
76-77 TechTrends-NOV_Layout 1 10/23/11 2:33 PM Page 77
A
s emerging economies begin to demand more
energy, major suppliers like Saudi Arabia will con-
tinue to lead world production, with enough excess
capacity to produce more oil to meet growing global
markets.
Saudi Arabia, in partnership with Standard Oil of
California, first discovered commercial quantities of
oil in 1938 with the Dammam well No. 7. Now the
country maintains the worlds largest crude oil produc-
tion capacity, estimated by the US Energy Information
Administration (EIA) at more than 12 MMb/d at
year-end 2010.
The country has identified 264.5 Bbbl of proved oil
reserves, the second largest proved reserve base in the
world, and also has 2.5 Bbbl in the partitioned neutral
zone (PNZ) with Kuwait for its 50% share. For 2010, the
EIA estimates Saudi Arabia produced on average 10.2
MMb/d of oil, 8.4 MMb/d of crude oil, and 1.8 MMb/d
of NGLs and other liquids not subject to OPEC produc-
tion quotas.
In 2010, state-owned Saudi Aramco said it completed
the largest oil production capacity expansion in the
companys history. According to its 2010 Facts and Fig-
ures report, the company averaged production of 7.9
MMb/d with 2.9 Bbbl for the year. Saudi Aramco also
reported 279 Tcf in gas reserves with an average daily
production of 9.4 Bcf and annual production of 3.4 Tcf
in 2010.
The company is developing some of the largest
megaprojects in the industry, including the US $10 bil-
lion Manifa project in the Arabian Gulf. Construction
on the offshore heavy oil field began in early 2010, and
drilling began in March 2010. Saudi Aramco projects
that Phase 1 will provide 500,000 b/d of production
capacity by 2013. An additional 900,000 b/d of capacity
will be added once Manifa is complete in 2015.
Saudi Arabia also boasts the worlds largest offshore
field. The Safaniya field is the third largest oil field in
terms of production, with capacity currently at 1.5
MMb/d, according to a global heavy oil analysis and
outlook published by Hart Energy in 2011.
Saudi Arabia has the second largest reserve base in the world
at 264.5 Bbbl. (Image courtesy of Saudi Aramco)
78
REGIONAL REPORT:
MIDDLE EAST
Middle East dominates
world oil, gas supply
The Middle East continues to add reserves in both legacy assets and underexplored areas.
78-81 RR-MiddleEast_78-81 RR-MiddleEast 10/21/11 11:40 PM Page 78
According to the EIA, other main producing and
record setting fields in Saudi Arabia include the onshore
Ghawar field, the worlds largest oil field, which accounts
for about half of Saudi Arabias total oil production
capacity and produces more than 5 MMb/d of oil; the
onshore Khurais field, the largest oil field brought on
globally in 2009, which has a capacity of 1.2 MMb/d; the
onshore Qatif field, with capacity of 0.5 MMb/d; the
onshore Shaybah field, with capacity of 0.5 MMb/d; and
the offshore Zuluf field, which produces 450,000 b/d.
According to the Hart Energy Heavy Crude Oil
report, Saudi Arabia now is aiming for production of
heavy heavy oil (versus the medium-heavy Arab Heavy
crude). Toward that end, Saudi Aramco and Chevron
Corp. are conducting a heavy oil steamflood pilot proj-
ect in the Wafra field in the PNZ. Chevron operates
three onshore PNZ fields, Wafra, Humma, and South
Umm Gudair, which hold 2 Bbbl of proved reserves and
total production of about 260,000 b/d.
Saudi Aramco also has made several offshore gas finds
that are not associated with oil. The Karan, Arabiyah,
and Hasbah fields are expected to come onstream in the
next five years, adding at least 1.3 Tcf of production
when fully operational. The companys Wasit gas pro-
gram is expected to become the largest gas plant in the
Kingdom with a production capacity of 2.5 Bcf/d.
The bright spot
Now in the throes of reconstruction efforts following
decades of war and 30 years of dictatorship, Iraq is
poised to become a top-tier oil producer alongside its
Saudi neighbor. The countrys proved reserves totaled
143.1 Bbbl of oil as of 3Q 2010, up from a 2001 estimate
of 115 Bbbl. This new figure excludes Kurdish reserves,
which are estimated at 45 Bbbl. The country also has
the 10th largest proved natural gas reserves in the world
at 112 Tcf.
With the fourth largest proved reserves behind Saudi
Arabia, Venezuela, and Canada, the new democracy in
the Middle East is striving to quadruple its production to
12 MMb/d by 2017. This high end projection is based on
recent licensing agreements signed with international oil
companies (IOCs) to increase the production of a dozen
of its oil fields. However, Iraq has not exceeded produc-
tion of 3 MMb/d since 1979. In 2009, the countrys crude
79
REGIONAL REPORT:
MIDDLE EAST
The offshore Manifa field is expected to increase the capacity
of Arab Heavy crude, adding to Saudi capacity in the next
few years, according to a heavy crude oil global analysis and
outlook published by Hart Energy in 2011. (Image courtesy of
Saudi Aramco)
oil production was little changed at
2.4 MMb/d; pre-war production was
2.8 MM b/d. Currently, Iraq has no
output restrictions from its producer
group OPEC.
In the near term, Iraqs ambitious
targets may not be reachable as the
IOCs operating in the southern area
of the country continue to experience
infrastructure development problems,
according to a study recently released
by Rice Universitys
Baker Institute for Public Policy.
The study maintains that Iraqs
logistical and political challenges are
taking place just as Saudi Arabias
costs are increasing with the coun-
trys efforts to expand and maintain
sufficient spare capacity while invest-
ments shift to areas that have more
80
REGIONAL REPORT:
MIDDLE EAST
South Pars/North Field
Shared between Iran and Qatar, the South Pars/North field is the largest
gas field in the world, covering an area of 9,700 sq km (3,700 sq miles), of
which 3,700 sq km (1,400 sq miles) is offshore Iran and 6,000 sq km (2,300
sq miles) is offshore Qatar. The field holds an estimated 1,800 Tcf of in situ
natural gas and some 50 Bbbl of natural gas condensates, according to the
International Energy Agency. Irans South Pars project is expected to pro-
duce 790 MMcm/d of gas. The National Iranian Oil Company (NIOC) is
targeting full-scale production at South Pars by 2015.
(Image courtesy of Pars Oil and Gas Co.)
Solutions that provide
benefits and improve
performance in your
daily operations
SiteCom - monitor drilling ope
-r.- Y....... .. r.--
".
a..,z
Rig Manager
TM -
manage offshore im
LedaFlow

- multiphase flow assurance
SIM Reservoir
'"'
- 3D visualization of reservoir m
Riser Management System - monitor riser system
Risers and Flow Lines - anal es and en ineerin
www.kongsberg.com/kog
n
ki
ll
,
o
? -
`! I
?:
i i l l
syf
1
6
I I / / 1 1 eb a'
I I I 1 1 1 F f l
?
1
1
1 1
/ 1 I r
I
1
d
KON
complex geology and require greater tech-
nological intervention.
According to the Baker Institute, Iraq
has the potential to increase production
from 2.5 MMb/d in 2010 to more than 5
MMb/d in the next five to 10 years. The six
super fields that will be the cornerstone
of this massive crude oil expansion plan
are Rumaila, East Qurna-1, West Qurna-2,
Majnoon, Zubair, and Halfaya, which col-
lectively hold nearly 200 Bbbl of oil.
Rumaila alone accounts for one-third of
reserves under contract, the report notes.
Despite its immediate infrastructure con-
straints, Iraqs central government in Bagh-
dad has said it expects to add 10 Bbbl and
29 Tcf to its reserves from the 12 blocks it
will offer in the countrys fourth bid round
in January 2012. Forty-one companies have
prequalified to bid on the blocks.
These new initiatives in Iraq are opening
the door to increased foreign investment in
an effort to spur oilfield development.
In addition to its huge assets, Iraqs
smaller fields such as the Gharraf, Badra,
Qaiyarah, Najmah, Ahdab, and cluster of
Missan fields in central and southern Iraq
also are significant in raising production
and, according to Hart Energy Research,
represent what the IOCs will be developing
going forward.
The Iraqi oil ministry awarded 12 techni-
cal service contracts to IOCs since reopen-
ing its upstream sector to foreign firms.
Eleven of these contract awards resulted
from two crude licensing rounds held in
June and December 2009.
China National Petroleum Corp. was
awarded a US $3 billion contract in
November 2008 to develop the
al-Ahdab field. On June 27, Phase 1 of
production at al-Ahdab was completed,
with output reaching 60,300 b/d.
BP, ExxonMobil, Shell, Lukoil, Eni,
Total, Japan Petroleum Exploration, and
China Petroleum Corp. also have signed
on to develop Iraqi fields.
BP and CNPC were awarded a $15 billion
field development services contract for the
16 Bbbl Rumaila field development project
in October 2009.
81
REGIONAL REPORT:
MIDDLE EAST
Other Middle East players
A
lthough Qatar has 15.2 Bbbl in oil reserves, gas forms the
backbone of the countrys petroleum industry. Production
from the gigantic offshore North Field will continue to feed LNG
export facilities at Ras Laffan, a project that will be joined in three
years by the Barzan Gas Project, part of the countrys long-term
strategy for sustainable development. The first LNG train (Phase
1 of the project) will come onstream in 2014, with the second train
coming onstream the next year. Combined production from the
Barzan and other RasGas facilities is expected to reach 11 Bcf/d.
Noteworthy developments also are taking place in areas that
have seen considerably less oil and gas E&P activity.
The Syrian Ministry of Petroleum and Mineral Resources
along with the General Petroleum Corp. (GPC) announced in
late March 2011 the opening of International Offshore Bid
Round 2011. As part of an exclusive contract with the Ministry
and GPC, CGGVeritas provided technical support for the bid
round and co-hosted roadshow events and data reviews in
Damascus, London, and Geneva for companies interested in the
official available technical data covering the entire offshore
Syria area.
Central to the project is 5,000 km (3,107 miles) of long-offset
multiclient 2-D seismic data acquired by CGGVeritas in 2005
in water depths ranging from 500 m to 1,700 m (1,640 ft to 5,577
ft). A minimum of 3,000 km (1,864 miles) of this data must be
licensed by each oil company interested in bidding in this
round.
Meanwhile, Lebanon is preparing for its first offshore bid
round, which the countrys energy minister said could take
place as early as 2012. In 3Q 2010, he announced Lebanons
plans to outline its maritime sea borders in preparation for put-
ting blocks up for bid.
A maritime border dispute with Israel could postpone devel-
opment, but the disagreement will not hold back Israels
domestic development plans.
A conservative estimate by Infield Systems places spending
offshore Israel over the next five years at more than US $2 bil-
lion compared to just $272 million over the 2006-2010 period.
Israel has proved reserves of 1.94 MMbbl of oil and 198.2
Bcm of gas. Most of the countrys reserves are undeveloped,
which is reflected in its 2010 production of approximately 4,000
b/d of oil.
Noble Energy is the most prominent operator in the country.
The company operates the Mari-B gas field and has had three
additional discoveries Tamar, Dalit, and Leviathan all in the
Levant Basin, which according to the US Geological Survey
holds an estimated 122 Tcf of gas and 1.6 Bbbl of oil.
North Sea/Europe
Kraken captured in UKCS
UK-based independent Nautical Petroleum reported
that the Kraken 9/02b-5Z horizontal well in UKCS
North Sea Block 9/2b was successfully completed and
tested using the Wilhunter semisubmersible drilling rig.
The horizontal section of the well was drilled from 1,602
m (5,257 ft) MD to a total depth of 2,213 m (7,260 ft)
MD. Preliminary log evaluation indicates a calculated
net oil pay of 487 m (1,598 ft), with average porosity of
38% and average oil saturation of 90%.
DNO hits pay in license 48
Det norske oljeselskap ASA (DNO), operator of PL 482
offshore Norway, is in the process of completing explo-
ration well 6508/1-2 on the Skaugumssen prospect.
The well, which lies about 10 km (6 miles) south of the
Norne field in the Norwegian Sea, encountered an 18 m
(59 ft) gas column and a 23 m (75 ft) oil column. Fur-
ther studies are necessary to determine if the discovery
is economically viable, says DNO.
No go off Greenland for Cairn
Cairn Energys latest wildcat offshore Greenland has
proven to be another duster. The UK independents
Delta-1 exploration well in the Napariaq Block in the
West Disko area was drilled in 293 m (961 ft) water depth
approximately 365 km (222 miles) offshore Aasiaat.
The well was targeting the Cretaceous Section beneath
the Tertiary volcanic but was plugged and abandoned
after reaching TD at 2,977 m (9,768ft).
Goliat to be Barents first
The Goliat field will be the first oil field developed in the
Norwegian sector of the Barents Sea. Production will
begin in 2013 and will be in operation at least 10-15 years.
As part of the field development, the newbuild vessel Dock-
wise Vanguard will return to Korea to load and transport
the Goliat FPSO vessel to northern Norway. Eni will oper-
ate the FPSO.
Africa
Tullow nears approval for Enyenra-Tweneboa
The latest well on Tullow Oils Enyenra offshore Ghana
has confirmed an up-dip extension that moves the opera-
tor closer to a commercial go-ahead for development to
be carried out along with the nearby Tweneboa discovery.
The Enyenra-3A appraisal well in the Deepwater
Tano license encountered oil in high quality sandstone
reservoirs. Pressure data indicates that the well has con-
firmed an up-dip extension of the Enyenra oil field.
Transoceans Deepwater Millennium drilled the well, which
lies 6.5 km (4 miles) north of the Owo-1 discovery well and
14 km (8.7 miles) north of Enyenra-2A. Pressure data con-
firms a continuous oil column of at least 1,198 ft (365 m).
Anadarko raises estimates for Mozambique
Anadarko Petroleum has raised its reserves estimate for
deepwater discoveries offshore Mozambique to more
than 10 Tcf. The company is mobilizing a second deep-
water drillship to the Rovuma Basin to accelerate its
exploration and appraisal campaign, which includes an
extensive reservoir testing program and up to seven
exploration/appraisal wells over the next 12 months.
Its latest exploration well on the Camarao prospect
encountered approximately 73 m (240 net ft) of gas pay in
an excellent-quality reservoir and confirmed static pres-
sure connectivity with the previously announced Windjam-
mer and Lagosta discoveries. In addition, the well
discovered approximately 43 m (140 net ft) of gas in he
shallower Miocene and Oligocene sand packages not
encountered in previous wells.
South America
Petrobras rolls out Barra
Brazils Petrobras has confirmed an ultra-deep discovery
in the Sergipe-Alagoas basin, a find that potentially
EPmag.com
READ MORE ONLINE
For additional
information on
these projects
and other global
developments:
The Aker Barents semisubmersible drilling rig drilled the 6508/1-
2 well to 1,770 m (5,800 ft) depth below the surface, terminating
in the Early Jurassic. (Image courtesy of DNO)
82
international
HIGHLIGHTS
82-84 Highlights-NOV_82-84 Highlights-NOV 10/21/11 11:40 PM Page 82
83
international
HIGHLIGHTS
opens up a new province for Brazils already booming
offshore sector.
Oil and gas accumulations were confirmed by a well
formation test in the BM-SEAL-11 concession in Block
SEAL-M-426. The oil sample indicated excellent quality
45 API in the upper interval and 32 API in the lower
interval. Well 1-BRSA-851-SES (1-SES-158), named
Barra, lies in 2,341 m (7,681 ft) water depth 58 km (36
miles) offshore Sergipe.
Americas Petrogas finds oil onshore Argentina
Americas Petrogas and co-venturer Gran Tierra Energy
have hit oil with the first of three exploration wells in
the Rinconada Norte block in the Neuquen Basin
onshore Argentina. The RNx-1004 well flowed 1,023
boe/d from two intervals tested separately in the Pre-
cuyo formation. The company estimates an oil column
thickness of approximately 60 m (197 ft).
The Rinconada Norte block lies south of the com-
panys Medanito Sur block in La Pampa Province in the
eastern region of the Neuquen Basin.
Natal flows gas for OGX
Brazil-based OGX has concluded a drillstem test in the
Santonian section of well 1-OGX-11D-SPS in the shallow
water BM-S-59 block in the Santos Basin. Following a dis-
covery of a 180-m (591 ft) column with 75 m (246 ft) of
net pay in the Santonian section of the Natal accumula-
tion last year, a drillstem test on well OGX-11D con-
firmed the presence of gas and condensate
Well OGX-11D, named Natal, lies in block BM-S-59
approximately 84 km offshore Rio de Janeiro in 180 m
(591 ft) water depth.
Middle East
Test success for Tethys onshore Oman
Sweden-based Tethys Oil announced in September
that test production from an early production system
on Blocks 3 and 4 onshore the Sultanate of Oman
amounted to 190,938 bbl of oil, corresponding to
6,365 b/d of oil.
Iran boots Gazprom Neft
The Iranian Oil Ministry has dropped Gazprom Neft
from the Azar oilfield deal and has suspended a contract
with China National Petroleum Corp. (CNPC) for an
offshore North Pars field development, according to the
Fars News Agency.
Iran previously had warned Gazprom Neft that it
would be replaced with domestic companies unless work
on Phase 11 of the South Pars field development was
sped up. The ministry also signed a contract with state-
owned oil companies to develop the Azar field, which
has planned production of 50,000 b/d.
Gulf of Mexico
New wildcat for Green Canyon 451
According to IHS Inc., Perth, Australia-based Woodside
Energy Inc., was awarded federal approval to drill an
exploratory test on Green Canyon Block 451, a previ-
ously undrilled tract known as the Floyd prospect.
Under the OCS G32509 lease, one deepwater wildcat is
planned for a surface location in the northwestern por-
tion of Block 451. Water depth in the area is 945 m
(3,100 ft). The drilling rights to the block were acquired
by partners Woodside (42%), Newfield Exploration Co.
(42%) and Stone Energy Corp. (16%).
Lafitte test hits pay
McMoRan Exploration reported that the company found
hydrocarbon-bearing sands at the companys Lafitte
exploratory test, #1 (BP) OCS G21640, on Eugene Island
Block 223. Wireline logs indicate that Miocene sands
below 7,407 m (24,300 ft) appear to be hydrocarbon bear-
ing and the various thicknesses total 61 m (200 ft).
North America
Wildcats test Niagaran
IHS Inc. reported two Niagaran tests are planned in Ing-
ham County, Mich., by Range Michigan LLC. The state
permit application indicates that #1-1 Cremer will be in
Section 1-2n-1e, and #1-11 Bowen will be in Section 11-2n-
1e. Both tests have a proposed total depth of 1,372 m
(4,500 ft). Niagaran oil production in two Ingham County
fields (Ingham 12-2n-1e and Ingham 13-2n-1e) is about
one mile southeast of Range Michigans planned tests.
The total volume of the gas in place in South Pars is approxi-
mately 58.9 Tcf, and the recoverable volume of sour gas is
approximately 47.2 Tcf. (Image courtesy of Mohammed
Sadegh Amini, special correspondent)
82-84 Highlights-NOV_Layout 1 10/22/11 8:55 PM Page 83
84
international
HIGHLIGHTS
Discovery for Masham field
A horizontal producer by Territory Resources LLC of Stillwater, Okla.,
was completed on the northern flank of Masham Field in Pawnee County,
Okla. The #1-27H Beast is in Section 22-23n-4e and pumped 585 b/d of 40-
degree gravity oil, 1 MMcf/d of gas and 2,300 b/d of water from a lateral in
Mississippian at 1,331 2,451 m (4,367 8,041 ft) after it was acidized and
fracture-stimulated. The 2,464-m (8,083-ft) venture was drilled south-south-
eastward to a bottomhole in Section 27-23n-4e and the true vertical depth is
1,098 m (3,604 ft).
New producer on Hereford Ranch prospect
On its Hereford Ranch prospect in Weld County, Colo., Houston, Texas-
based EOG Resources Inc. completed a horizontal Niobrara producer that
initially flowed 248 b/d of 36-degree gravity of oil, 177,000 Mcf/d of gas
and 237 b/d of water. The #13-17H Critter Creek is in Section 17-11n-63w
and produces from a horizontal Niobrara lateral extending from 2,336 m
(7,665 ft) northwestward to a 3,895 m (12,780 ft), 2,266 m (7,434 ft) true
vertical. It was tested after fracturing Niobrara at 2,345 3,880 m (7,692
12,731 ft). Flow was gauged through a
16
64-in. choke with a casing pressure
of 690 psi.
Caspian/Central Asia
Cairn strikes gas offshore Sri Lanka
Cairn India Ltd. subsidiary Cairn Lanka (Pvt) Ltd. has made an ultra-deep-
water gas discovery with the CLPL-Dorado-91H/1z well in the Mannar Basin
offshore Sri Lanka. The well was drilled by Chikyu Hakkens Chikyu drillship
in 1,354 m (4,442 ft) water depth in block SL 2007-01-001.
A gross 25 m (82 ft) hydrocarbon column in sandstone between 3,044 m
and 3,069 m (9,987-10,069 ft) measured depth (MD) was interpreted from
log and MDT data to be predominantly gas-bearing with some additional
liquid hydrocarbon potential.
North Russia success for Exillon
UK-listed Exillon Energy, has hit oil with the EWS I - 44 well in the south-
eastern part of the East EWS I field in northern Russia. Exillon spudded the
EWS I - 44 well in August, dirlling the well 1.3 km (0.8 miles) west from the
existing well pad. The well encountered the Jurassic P reservoir at 1,834 m
(6,017 ft), confirming 7.3 m (24 ft) of effective net oil pay within the Juras-
sic and 3.1 m (10 ft) of oil-water transition zone.
New discovery at Mtsare Khevi field
Frontera Resources Corp. began
testing operations at its #32 well drilled in the undeveloped northwestern
portion of the Mtsare Khevi. The well was drilled to 370 m (1,214 ft) and
subsequent log analysis indicated 33 m (108 ft) of gas bearing net pay were
penetrated among the known Zones I, II, III within the field. Testing on the
14-m section in Zone I delivered a rate of 441 Mcf/d of gas on a 9mm choke
and 671 Mcf on 16mm choke. Based on these results, the company believes
that the #32 well has successfully expanded the size of the Mtsare Khevi
fields gas potential by as much as five times the original gas estimates.
82-84 Highlights-NOV_82-84 Highlights-NOV 10/21/11 11:40 PM Page 84
Oilfield Improvements
Tm
ULTRA-
FLOWTM
FIELD-INSTALLED
CENTRALIZERS/
PARAFFIN SCRAPERS
Full-circle Wiping
of Tubing I.D.
More Gripping
Force on Sucker Rods
More Fluid Flow-by
Volume
Longer Useful Life
from Longer Vanes
& Bearing Surfaces
Positive Wear
Indicators
Amodel with Glass Fill
CALL 1 -800-LES WEAR
(800-537-9327) OR YOUR
Oilfield Supply Store
www.rodguides.com
Oilfield Improvements,
Inc.
1902 N. Yellowood Ave. L
VISA
Broken Arrow, Oklahoma 74012 U.S.A.
PHO 918-250-5584 FAX 918-250-4666
TM
WHEELED ROD GUIDE
T11
COUPLINGS
For Severely-deviated
and Directional Wells
Used Successfully for
Over 27 Years by Over
90% of Major Oil &
Gas Companies in
Over 40 Countries -
Onshore and Offshore
Wheels are
Field-replaceable
Call
800-537-9327
or Your Oilfield
Supply Store
www.rodguides.com
p-
1902 N. Yellowood Ave.
V
?
,
Inc.
Broken Arrow, Oklahoma 74012 U.S.A.
PHO 918-250-5584 FAX 918-250-4666
l;)1
on the
MOVE
85
People
US Interior Secretary Ken
Salazar has confirmed
BOEMRE Director Michael
Bromwich (left) will lead the
new Bureau of Safety and Environmen-
tal Enforcement (BSEE) until a perma-
nent director is selected. BOEMRE
Senior Advisor Tommy P. Beaudreau
will lead the new Bureau of Ocean
Energy Management (BOEM).
dGB Earth Sciences has elected
Kristofer Tingdahl CEO, replacing
company founder Paul de Groot who
will remain as president. Additionally,
Nanne Hemstra, former executive vice
president, Asia Pacific, has become
executive vice president, Americas,
succeeded by former Marketing Direc-
tor Jan Stellingwerff Beintema.
Jerel C. Jerry Gilmore
(left) has been appointed
president of TSB Offshore
Inc. (formerly Twachtman
Snyder & Byrd Inc.) and will be respon-
sible for oil and gas decommissioning
liability consultancy and project man-
agement.
Quantum Energy Partners Managing
Director William C. Montgomery has
joined the board of Apache Corp.
CHC Helicopter has named
Nick Mair (right) regional
vice president, Western
North Sea; Rob Pendle
vice president, maintenance and tech-
nical services; Dave Stewart finance
director; and De Jansen director of
flight standards. Paula McKenzie will
succeed Jansen as business unit leader,
Southern North Sea.
Jean-Paul Lachance has taken the reins
as vice president, exploitation, at Peyto
Exploration and Development Corp.
Wild Well Control has named
Kerry Girlinghouse (right)
vice president, well control
engineering.
Lance W. Robertson has taken on
the role of regional vice president,
South Texas/Eagle Ford, at
Marathon Oil Corp.
85-86Onthemove_Layout 1 10/23/11 3:06 PM Page 85
UNI TEO S TATES
POSTAL SERVICE
Statement of Ownership, Management , and Circulation
(Requester Publications Only)
M
W, 4
oth
i.pNle.
l ?
I Ca.p. ,troS gwaPJak,.bn (rraps. . l l f
bib
6
VoSS )1
,
Q (-L>,>p tto L tsv-
i k k-?t1
I`?? 0? FA3 (o. 01 2vl I
rrY?n Ea KrErt-}?
Z'(
-4-7t)
c - i
'
Tbt7 b'tf !
c7t t
r S. ?05 ; Ct P i c o -r}yu$t .- nc 'fl-t
5* o.ea 6.,. M.
aW.r /e.6 ,.,..e?
R?c 1I
L. ' - (Wt S Voss Ste IoUV fra,tSt?' fX 3TD5:'
ti+Nrra?I l bl b S. IIaSS Ste ?a? tlbuStor
-
JX4?-o5}
M.o"4--v DvPtil (Ll1. S_ Voss e l ? i1 etit?tQ 2?c? ?
4.57
+O Caw(O, naw.s wM .parr.,r,.,,., , 4 y./no. S6P.6.5a..ro.4PS. a.. SPaw,.a,.aa.Y6eeeerm
a,0a,w9 , Pe*ae a ew.ae .6W.,.wraaw N..,,.e,q y .raaOSrtw p,m
per a
.
.5/.1.59 5 aw ,,.,eyp+an, .5. ,e. n.r_ .114 .45....... .ne.. a
P.O, wi'sm- 459 p rr..59, P.4.w0er *fl(5lPap,W.1a Pwow .m.a...r
-
wwp Pa4n.
!f?? t &I P U G S Mxl SQ n q P 68O ] tAVk r C
6,r
,
L 7 LA
-
C FA rn son Cif (.B4. tgr G
059.. <0.ipy.. aw 05*
- 1
Maa 0,.r.9a, wery , Oamna Musa TqS 5,011.(1954.,Ma9w. 5 11 .
O.v ewuen 11,..5.
- 0 erne
Vr
-e - e 5lA,lpcr 2-0(
r..le RnwMaC,n5,p6P 5('5/004/. M c(W.e1Mna.
-.wnp P.wny ,ewwee.,ue
. rua06ee0.ac<Pe.P</P+. e.I
3 2 9 0
0.04.0. count pm<pwWM.4 94wp,MU.1 un PS ran DS<,
n? ; ,. eP n<00wr .0m,.e.P . . . . ea.P naw,.W
C) -j
e 1.59.,4/
P
.Maav P.6(M:..m MP?sr,w.n<wm,nrs R,,,,, ls<
CW
'
bn Iti
^
1
,p
'
,
?
t,O,,
,av,r , 'wa?wp n.
am-N.
6..59
P)
:..r, .a. we5.5914 La:?awa.wm.CO.,,
s.0.. po ona P.ua ROO.,e aaearare. uaPS+ ( Z
l 01,2, I OI ? 0
_ 0 0
< ,.a p,ewR.nu.M .e r.,we,rx,5 a, 5onl . r r xr n. wr R1 ?
33 9 35(
O' _
r<.,,w,a. ?,ew..k.a.a,..%.m.,eaw~m. ,,.,4 15 7 I II I$
4Ma . c.,,anaap.Mevwe, sa4 ,,5 b, r w .
$
0
(0*50 a
M
Mw
, .
.
? . .
, uI raw-3,0e.new501,,
.. a r+a., n . ,n, a a ,. m, o
..e- w o. .5 <
%r Ma M... 5959<,aewrw. a.na 0*3*5
0u5w,m...000,3
0
w
ew.eNCO* .DNw,p l..ay119.09,$60 C<,a'544.
0
%?% ru fea CM.. Ma M... aw?Cap..e,ba. w
.,,...,.K..er.<M.sa1W.,, $1103. R...1
.'
LuwR ,S M.0/11 ...5 rwwwew
.o
r romosp. ,. p ooor.. s4e..., I () 3 I
2
450Ma,0. ,...,.e0...a,.a,rve0 ,a,.errr.r:xru..erw
3 1 10 1 v f 7 ,
a
5. aa r /10/ 11 a ?
31o
%b
03 2- 2oO
9 05910no..0.0,0wrr. e.e0<0.0n. ,nM.Sn
..m+wuv ? C
rw rs410010 4 5
3b8 o3 29Z00
ns ?0w<
455 ,0
. r
05.,06,
?
.1WC.,a,a5.,ero/ a0-iw,.w,aIRepnq., Fl,Mka6,.1,9,4-5 O04 MaYM! P.
( . I 4 aW,, ver 20 I/
a MO.'6,Cn ?.r:a. 11?SPwauip ,l MaM
O Mb CN.pePerq PlO:NI312 MM9. rwe aWSwxl.I .,pW.M6a&M5p. a. ,wwS.nnp
777
-
7
- 3 20) 1
343
*:
I5
*-
M1*50*,.,<,M,.ra 0/06,0p. .
wna4
,MM..,?M.S.a
P.P.6a5 .wwr.r..eeae9 81*1* ea....,,,.,
w03P.Cr,OS. to 5a p.,wl.1
Fugro Geos has strengthened its manage-
ment team by appointing Alastair Stagg
regional manager of the companys Meto-
cean Measurement business line; Richard
Davies commercial manager at Walling-
ford, UK; Ben Williams operations man-
ager, responsible for all Houston-based
measurement and offshore systems opera-
tions; and Kit Moss divisional manager for
Metocean Measurements in the Fugro
Geos Singapore office.
Tracerco, part of the Johnson Matthey
group, has tapped Gary Phillips to head
its Aberdeen operations.
Bristow Helicopters has selected David
Laskowski to oversee North Sea opera-
tions as development manager.
Barry Cann has joined qedi as general
director to spearhead its Europe business
division, while David Hickey has taken the
role of operations director, overseeing the
companys international portfolio.
Expansions
The Aker Solutions Aberdeen operation
has moved its process and pipeline busi-
ness to Norway to bolster inspection,
maintenance, and process services on the
Norwegian Continental Shelf.
Reservoir Group member Corpro will
establish two autonomous operational
bases in Colombia and Brazil.
Reflex Marine has launched a globally
accredited service center program for its
FROG and TORO marine personnel
transfer devices, with Enermech FZE
appointed as the companys first accred-
ited service center in Dubai.
The Petroleum Extension Service
(PETEX) at the University of Texas
at Austin has opened a new Learning
and Assessment Center in Houston to
provide training courses for oil and gas
personnel.
ADVERTISER INDEX
Ariel Corp. . . . . . . . . . . . . . . . . . . . . . . 28
Baker Hughes Incorporated . . . . . . . . 11
Cameron . . . . . . . . . . . . . . . . . . . . . . . . 18
CDI Seals . . . . . . . . . . . . . . . . . . . . . . . 36
CNPC Greatwall Drilling Co. . . . . . . . 24
Cudd Energy Services . . . . . . . . . . . . 41
Dragon Products, Ltd. . . . . . . . . . . . . . 26
E&P . . . . . . . . . . 39, 43, 71, 74, 85, 87, IBC
EQT Corporation . . . . . . . . . . . . . . . . . . 9
FMC Technologies . . . . . . . . . . . . . . . IFC
Frontier Energy Group, Inc. . . . . . . . . 37
Fugro Jason . . . . . . . . . . . . . . . . . . . . . . 55
Halliburton . . . . . . . . . . . . . . . . . . . . 4, 15
J&J Truck Bodies & Trailers . . . . . . . . . 12
Keen Energy . . . . . . . . . . . . . . . . . . . . . 17
Kongsberg Oil & Gas Technologies . . 80
Lufkin Industries, Inc. . . . . . . . . . . . . . 48
Mewbourne College . . . . . . . . . . . . . . 13
M-I Swaco . . . . . . . . . . . . . . . . . . . . . . . . 2
Moduspec . . . . . . . . . . . . . . . . . . . . . . . 45
Momentive . . . . . . . . . . . . . . . . . . . . . . 68
National Oilwell Varco . . . . . . . . . . . . . 49
Oilfield Improvements . . . . . . . . . . . . 84
P2 Energy Solutions . . . . . . . . . . . . . . . 67
Petris Technology, Inc. . . . . . . . . . . . . . 57
PGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Precision Drilling . . . . . . . . . . . . . . . . . 23
Precision Geophysical . . . . . . . . . . . . . 53
R360 Environmental Solutions . . . . . . 33
Schlumberger . . . . . . . . . . . . . . . . . 3, BC
Society of Petroleum Engineers . . . . . 35
Spectraseis . . . . . . . . . . . . . . . . . . . . . . 22
Stallion Oilfield Services . . . . . . . . . . . 65
Statoil ASA . . . . . . . . . . . . Cover Fold-out
TESCO Corporation . . . . . . . . . . . . . . . 7
Weatherford International, Ltd. . . . 20, 21
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
Regional Sales Manager
JULIE B. FLYNN
Tel: 713-260-6454
jflynn@hartenergy.com
Regional Sales Manager
HENRY TINNE
Tel: 713-260-6478
htinne@hartenergy.com
Advertising Sales Representative
ERIC MCINTOSH
Tel: 713-260-6471
emcintosh@hartenergy.com
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
MARKETING | SALES | CIRCULATION
86
on the
MOVE
?
HART ENERGY'S MARCELLUS DIRECTORY MAKES IT EASY.
The Marcellus ranks among North Ame rica
'
s premier shale plays. Companies in every discipline are setting up Marcellus
teams , moving into or expanding their presence .
Keep pace with the activity! The new MARCELLUS DIRECTORY is your go-to resource for this exciting shale play.
Only Hart Energy, the leader in covering unconventiona l resources , brings you all these contacts across each sector of
the industry. Our unique, easy-to-use Buyers Guide cross-references more than 400 products and services.
Active in the region? Looking to break in? The MARCELLUS DIRECTORY from Hart Energy gives you an advantage
in making an impact. Your subscri ption includes the premiere print edition as well as year-round updates on both the
companion online edition and the exciting new mobile application.
ORDER YOUR COPY TODAY for onl y $99 and be among the fi rst to see and use the
MARCELLUS DIRECTORY.
MARCELLUS
DIRECTORY
Visit www.hartmarcellusdirectory.com/JlAMAR
Email custserv @hartenergy.com
Or call 713-260-6442.
'a
r r
, ?
f
.
l
;
"-?'
i
?=
/ +
Y
?
}
"
J
?
.s
?
'
?' -?ri i?
4-?
?
. ry} ?r
$
,5-
?
?4i
?
,
.
r! .
r,
.
?
,.:
'
?
?
?=
r ?
?.yl?
`
Cj
'
tr
I
`
v {
,
'f
1
'
0
e
`5-
+
t
r
a
+:
I
!
L
I'
ter,
r
^_
i.
` Lr k
?
?'?IT' .a. ?1??l
?
,
L.Y
f .
;
4
5
*
.r .r
,
..
,?
.o
}
?y
W'
?
1
`
P?
:!
'
.?
Yr
. .5
?+
+
*? ? J s .
,, ?
?
7
,\
.. -mac
.
? /
j
l
y
t
?
f
yJ
? l
f ?
?
p
?C
_
9
tr
a
1
1
71
3
JJ
4 ' { j f r
l r
s
ko
y
r
V? Il
`
2
` -
?
?`
?
? (y+
,
'
Jf J
l
f
'
/
i J
.M
l?l
?N?,(
ii
,
?3i?
,.1' ;
?
f
'I
??
' ??7
?
,i
}
}
'
.?-.1
1
..1"
y ;r_
_
?
'
4'.
" -
ti
,
, .
?
'x"
.?. : .
?4,
r`
.,
L :,.?.?
.r[
"
?
? 3
a, ?,1. ?..
.rr
?
?
?.
, ?"
r
l ' t/ }
1,
I`?
.
f "
t
f
?'
;`
`
.f-
s
?r
?

?
?. .J?
.. ?
"?
??
'?
. ?' -r, , ,
'7?'""?
rr q
1 ?
>
' ? w ? I
'JF's
y ?
z
?
< r.
,
t
r 1..J?' a
s
S
/-
?
,
? .r,
?
r
?
"i
JS
?
'
`
?
i
,^...
?
?
I
l ?"

.?
i
.?c
.
k
'.?'y?l/
?i1?.?n
i
J
?
.?t}
1
{:
r???
.!
J l s-
.,
,.
??
' J f
?
I'
t / r
h
,
y r,
J '
Fs?
,.
`
r.
;? * .9
1.?, f
f "
i
?^
J'?V ;
?
}
3 j '
1?i
?
r
l
y
?
1
t .
?%id f
't
f
?
l?
J
a l t
X i
I
/ - m a y y
i
' ? L
' ry
.?
-
.
.t
)
r
r
l
?
.
,
t?
1?
,
F
v
,
"' ?
i
l
,?
r
a Y
'
? ,
,
,
"
?
i' ;
J.
-
./"
?.F, ?
.:
?.? ;n .? , .':::
?
?
'
1
?
- y /-c:
:
'
- r
'
c;
-
r
.
?
'
?. ;
'
-
x
A
bout 28% of Pennsylvania and much of upstate
New York is rural. It surprises most people to learn
that New York State is 63% forested and that 59% of
Pennsylvania is forest land. The people who live in these
states enjoy what the outdoors has to offer, and they pro-
tect their natural resources. The fear that the natural
beauty that surrounds them could be irreparably dam-
aged is very real.
Over the last several months opinion pieces have
appeared regarding drilling in the Marcellus shale.
There have been reports that oil companies are ruining
the beautiful landscape of upstate New York and Pennsyl-
vania, that they are greedily reaping profits without a care
for landowners, and that fracing is contaminating the
water. Clearly, this information is not entirely factual.
Shale gas production is employing new technologies
that are developing rapidly. Developing shales will enrich
Pennsylvania and New York mineral owners. Shale tax
revenue will be paid to local governments providing long-
term wealth for communities, which will result in well-
funded schools, new and improved infrastructure, and
repaired roads.
At the time of this writing, Marcellus drilling in Pennsyl-
vania is moving forward in most counties while New
Yorkers continue to enforce a ban and drilling activ-
ity is boosting the state economy. In Broome
County, NY, on the other hand, the population
continues to decline as young people look for
work elsewhere. Broome County has identified
up to 4,000 wells that could be drilled in that area. Even
if only half were attempted, the revenue could yield US
$400 million in wages, salaries, and benefits; $605 million
in property income from rents, royalties, and dividends;
and $43 million in state and local tax revenue.
The Marcellus shale is a natural resource and presents a
business opportunity that will encourage children growing
up in this area who are interested in earth sciences to
work at home instead of looking elsewhere for jobs. The
Marcellus shale will take decades and generations to
develop, so people who are working there now could see
their children working there when they retire.
Energy produced from a lift on bans would help local
and national economic needs and produce all of the
byproducts of the industry that Americans have come
to rely on. Most importantly, the landscape will remain
beautiful. What the naysayers are missing is the fact that
shale gas development will attain its developed state
within a few years with less visible impact than the
electrical grid. And the aquifer impact will be far less
than that of agriculture.
Microseismic technology has determined that fracs are
not going near the water aquifer. This has been factually
proven, and communities in areas like Upstate New York
need to be educated instead of misled by ill-informed envi-
ronmentalists. The beautiful landscape will be preserved.
This industry is responsible for educating others about
the value of shale gas and the industrys ability to develop
it safely. If everyone shares the truth with neighbors, chil-
dren, or even at a town hall meeting, an accurate percep-
tion could displace the present one.
This is a great industry. How much greater would it be if
the general public felt the same way?
Environmental concerns stymie
NY shale development
Banishing demons in the Marcellus shale could bring new opportunities to
New York.
Mike Mueller, MicroSeismic Inc.
last
WORD
88
88 LastWord_88 LastWord 10/21/11 11:40 PM Page 88
991-994 HEPcoversNOV_991-994 HEPcoversNOV 10/21/11 11:41 PM Page 993
A
eom?
SAVE THE
DATE2012
UNCONVENTIONAL - THE NEW STANDARD!
APRIL 23-25, 2012
FORT WORTH CONVEMION CH\JTM
FORT WORTH
,
TDCAS
PRESENTED BY:
HART E NE RGY
HOSTED BY:
nvesto UP I r
D
Wq
991-994 HEPcoversNOV_991-994 HEPcoversNOV 10/21/11 11:41 PM Page 994
4.
1b
MIN' t"
, O
N.
10
1%b
%r
Complex Wells
Whether you are planning
wells with complex multilateral
trajectories , designing intelligent
completions with flow control
valves , or rigorously modeling
wellbore fluid flow-you have
everything you need to optimize
your complex wells.
With Petrel and ECLIPSE 2011,
I've got what it takes.
www.slb.com/complexwel ls
SI ofr. EKpcl
Innovative Technology
Schiumberger
111111111 1 11 1 111 1 1111 1 111 1 1 11 1 1 1 11 1 1 1 11 1 1 1 11 1 1 1 11 1 1 1111111111111111 1I
-
-
F1
S?y
r?
y.
'
`JI
:. .
i
+
J
r
'
r
r?,
1
r
"?
.
f
f
f r
I
N
*
-
Y
r
,'r
r r
Aid
r
-_
_ I I
- 1 t]i
I
r
t -
r -
i I
I r . L

Revista E&P - Noviembre 2011

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Revista E&P - Noviembre 2011

Transféré par

Droits d'auteur :

Formats disponibles

N OV E MB E R 2 0 1 1

Vous aimerez peut-être aussi

Revista E&amp;P - Noviembre 2011

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Revista E&amp;P - Noviembre 2011

Transféré par

Droits d'auteur :

Formats disponibles

N OV E MB E R 2 0 1 1

Vous aimerez peut-être aussi

Revista E&P - Noviembre 2011

Revista E&P - Noviembre 2011