E&P Magazine. June 2020 PDF
E&P Magazine. June 2020 PDF
E&P Magazine. June 2020 PDF
com
JUNE 2020
Frontier Exploration
the
Drill Bits
SHALE CODE
Decommissioning Lessons from the past
& Disposal can shape shale’s future
Special Report:
Emissions
Management
Unconventional
Report:
HAYNESVILLE
Accelerate
digital
transformation.
You need an innovative
company to create solutions
that digitalize oil and gas fields
and automate operations for
tangible performance gains.
Ready? We are.
© 2020 Weatherford. All rights reserved.
weatherford.com/digitalization
EXPLORATION & PRODUCTION J U NE 2020
WORLDWIDE COVERAGE VOLUME 93 n ISSUE 06
A H AR T E N E R G Y P UB L IC AT ION HartEnergy.com
22
32 Keeping a lid on GHG emissions Cracking the
In this special report, operators and service
providers share their long-term view on shale code
emissions management.
30
Making the case
FRONTIER EXPLORATION for data sharing
DRILL BITS
42 Managing transitional drilling challenges
58 UNCONVENTIONAL REPORT:
HAYNESVILLE
INDUSTRY PULSE
8 Conserve R&D budgets
and focus on external
technologies
12 Leading innovation
today
WORLD VIEW
14 Middle East economies
choked by low prices
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E&P DEPARTMENTS AND COMMENTARY
AS I SEE IT
Audience Altered reality 7
83.9K
Total Circulation
OPERATOR SOLUTIONS
A different way to think about wellbore surveying 52
57% tocompanies
oil & gas
OFFSHORE SOLUTIONS
Weathering a network storm 54
32% toor contractors
consultants
TECH WATCH
11% tocompanies
service
or others
Catalyst-free PDC cutter technology to drive drilling efficiencies 56
TECH TRENDS 60
96%
of E&P circulation
INTERNATIONAL HIGHLIGHTS
ON THE MOVE/INDEX TO ADVERTISERS 66-67
64
reaches executive
management, LAST WORD
engineers and A standards approach to specifying fluid system components 68
production personnel
COMING NEXT MONTH The July issue of E&P will focus on how remote operations
Distributed in have been put to the test this year. Other features will cover land seismic, downhole tools,
135
last-mile logistics, full-field development and offshore wind. The regional report will high-
light Africa. Also, this issue will feature the annual Shale Technology Showcase as well as
the 2020 Meritorious Award for Engineering Innovation winners. As always, while you’re
waiting for your next copy of E&P, be sure to visit HartEnergy.com for the latest news,
industry updates and unique industry analysis.
Countries
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E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057.
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Oil, gas explorers face murky future after oil price crash
By Velda Addison, Group Senior Editor
Some companies are deferring or canceling plans for wells amid the
latest oil price crash, while gearing up for potential change due to a
shift toward cleaner forms of energy, according to a recent Westwood
Global Energy Group webinar on the state of exploration.
Colorado School of Mines researchers unveil
reservoir characterization study results
By Larry Prado, Activity Editor
Research from this year’s Colorado School of Mines’ Reservoir
Characterization Program includes a field project in the Eagle Ford Shale
conducted in Gonzales County, Texas.
Despite short-term pain, oil and gas leaders
stress infrastructure gain
By Joseph Markman, Senior Editor
In a recent webinar, executives and politicians discussed ways to
position the industry for the coming rebound.
Frac horsepower utilization falls alongside sand demand
By Velda Addison, Group Senior Editor
Westwood Global Energy Group analysts say signs of market recovery
are emerging, with some improvement expected later this year for frac
companies and sand suppliers.
VIDEOS:
n Dr. Yousef Alshammari sees international
opportunities for US service companies
Dr. Yousef Alshammari, CEO and head of Oil
Research at CMarkits, doesn’t expect OPEC
to scale back or deepen cuts at the group’s
June meeting.
n KPMG’s Regina Mayor says ‘it’s grim’ but shale’s not dead
KPMG’s Regina Mayor looks at how U.S. shale producers will respond to
demand loss and who is getting hit the hardest in the energy industry
amid the current pandemic.
Annotate and share these E&P environmental standards with your team
RP 51, Onshore Oil and Gas Production Practices for Protection of the Environment
RP 75, Recommended Practice for Development of a Safety and Environmental Management
Program for Offshore Operations and Facilities
RP 96, Deepwater Well Design and Construction
RP 100-1, Hydraulic Fracturing – Well Integrity and Fracture Containment
LEARN MORE AT
www.api.org/GetCompass compass@api.org
As I
1616 S. VOSS ROAD, STE 1000 JENNIFER PRESLEY SEE IT
HOUSTON, TEXAS 77057 Executive Editor
P: +1 713.260.6400 F: +1 713.840.0923
HartEnergy.com
jpresley@hartenergy.com
Executive Editor
Read more commentary at
JENNIFER PRESLEY
jpresley@hartenergy.com HartEnergy.com
Group Senior Editor
VELDA ADDISON
vaddison@hartenergy.com
Altered reality
Senior Editor
BRIAN WALZEL
bwalzel@hartenergy.com
Senior Editor
DARREN BARBEE
Like life, the digital transformation is moving pretty fast.
dbarbee@hartenergy.com
Senior Editor
JOSEPH MARKMAN
jmarkman@hartenergy.com
D o you remember your first experience with a personal computer? Mine was
in 1983 when my mom brought home an original Compaq Portable all-in-
one computer in a cream-colored suitcase that weighed at least 20 billion tons in
my child-sized grip (OK, it was more like 30 lb).
Activity Editor
LARRY PRADO Using the system’s detachable keyboard and tiny built-in monitor, my mom did
lprado@hartenergy.com word processing and billing for the small engine repair business she owned with
Editor-at-Large
my dad in the heart of the Austin Chalk. When she wasn’t on it, I was learning
NISSA DARBONNE how to spell the names of the U.S. states using a MS-DOS program that I had to
ndarbonne@hartenergy.com load onto the system to run using a 5¼-inch floppy disk.
Associate Editors The COVID-19 pandemic shut the world down, brought the economies of many
MARY HOLCOMB mholcomb@hartenergy.com to their knees and forced us all to take a closer look at how we learn, live, play and
FAIZA RIZVI frizvi@hartenergy.com
work. The memory of that 30-lb “portable” brick lives on as I check work email on
my featherlight iPhone.
Senior Managing Editor, Print Media
The pandemic altered our reality for the worse and for the better. Curious
ARIANA HURTADO
ahurtado@hartenergy.com as to what this new reality means for the future of the oil and gas industry, I
reached out to Enverus’ Chris Dinkler for his views. He is the senior vice presi-
Senior Managing Editor, Digital Media
EMILY PATSY
dent and general manager of business automation for the company. First, and
epatsy@hartenergy.com foremost, welcome to the new era of working remotely, he explained.
Assistant Managing Editor
“As the scramble to respond to COVID-19 and the precipitous drop in prices
BILL WALTER continues, one thing is certain: it has created even greater urgency—and oppor-
bwalter@hartenergy.com tunity—for efficiency and innovation in how we operate,” he said. “Some will
wait. Others will wisely act and embrace change.”
Creative Director Also, staying home does not equal closed for business.
ALEXA SANDERS
asanders@hartenergy.com
“Leveraging technology that makes working remotely and virtualization pos-
sible is a necessity,” Dinkler said. “Improved workflows to eliminate ineffective
Art Director decision-making and identifying actionable intelligence that can be easily shared
MELISSA RITCHIE
mritchie@hartenergy.com among your team is key.”
The industry is going digital, forever.
Publisher “The U.S. oil and gas industry spends $5 billion annually processing paper
DARRIN WEST invoices, royalty check stubs and payment transactions that flow between operators,
dwest@hartenergy.com
suppliers and royalty owners. Going paperless is possibly the fastest and easiest way to
cut down on costly inefficiencies and maintain business continuity,” he noted.
Digital delivers greater efficiency and less exposure.
“Many are tapping into artificial intelligence and machine learning to manage
back-office systems and flagging unthinkable fraud and billing errors,” Dinkler
Editorial Director said. “Millions in mistakes are now being caught at the point of service.”
LEN VERMILLION
There’s no doubt we’ll look back and find a label for this period of epic uncertainty.
Senior Vice President, Media, “It will be full of dramatic drops, both in terms of revenue and resources,” he
E&P/Conferences
RUSSELL LAAS said. “But we’ll also look at how we adapted and ushered in
a new era of oil and gas marked by mobility, flexibility,
Chief Financial Officer
CHRIS ARNDT
innovation and automation.”
$10.8B $13.1B
$15.3B $16.2B $15.8B
$22.6B $5.5B
$10.6B
$11.6B
$3.3B
Toyota Motor
$10B Semiconductors
$6.1B $12.3B and
Semiconductor
$5.9B $10.2B Equipment
$4.6B $8B
$7.8B
$6.1B
$7.3B $8.5B
$6.1B
R&D Intensity (%)
$4.8B
$5.8B More than 40%
$7.1B
$4B
$7.7B $3.4B 20% - 40%
10% - 20%
$3.6B
$3.2B 5% - 10% FIGURE 1. This
$7.1B $6.6B 1% - 5%
Capital listing reflects
Goods R&D Expense
$5.9B 2018 R&D
(in USD billions, income
$4.6B $6.1B
statement exchange rate) expenditures
$4.2B
$5.8B
$20B
$3.9B $5.9B for some of
$3.7B
Diversified $15B
$5.4B Financials the leading
$5.4B companies in
$4.3B $10B
$5.3B
other industries.
$4.2B
$5B $3.3B
$5B (Source:
$4.8B Consumer Durables
$3.7B HowMuch.net)
$3.6B and Apparel
Figure 2 lists a few of the hundreds of early-stage com- rate of the technology. The resulting equipment is
panies involved in developing autonomous vehicle tech- less expensive to operate and as effective as traditional
nologies such as light detection and ranging (LiDAR) manned, heavy equipment.
sensors, compact radar, lane change detection sensors,
pedestrian tracking software and tire monitoring solu- Funding internal R&D does not
tions. With very few exceptions, the funding for these foster economies of scale
technologies is coming from angel investors and venture The petroleum industry is among the largest industries
capital firms outside the automotive industry. Absent in the world. However, the various segments of this
these new technologies, vehicle autonomy would still be industry often require different types of products, from
a distant concept. The development of these technolo- bulk commodities to very specialized items. Unless there
gies and their adoption by just a few automobile com- is a compelling technical reason to develop customized
panies are prompting every other vehicle company to hardware or software, accessing external technologies
pursue autonomous solutions. Similar dynamics are tak- will likely be more cost-effective. As recently as a few
ing place in the pharmaceutical industry where external years ago, the advanced LiDAR sensors developed for
companies are developing and commercializing artificial the automobile industry cost more than $50,000 apiece,
intelligence and machine learning software capable of more than the actual vehicle. However, the sheer size of
dramatically decreasing the time and cost associated with the automotive LiDAR market attracted many startups,
developing new pharmaceuticals. and some of the latter developed LiDAR systems having
Even the construction industry, which is not con- comparable technical capabilities at 1/100th the cost.
sidered to be an early adopter of new technologies, is
being transformed by the implementation of robotic Conclusions
systems developed by early-stage companies outside of Compared to several other major industries, recent petro-
that industry. These robotic solutions convert indus- leum industry R&D expenditures have been modest and
try-standard construction equipment, such as loaders will likely decrease materially during this downturn.
or bulldozers, into systems that are either operated Rather than attempting to increase R&D expenditures,
remotely by a human or completely unmanned. the petroleum industry should focus far more attention
Deploying this technology on industry standard rather on accessing relevant external technologies. Importantly,
than customized equipment dramatically lowers the this is a strategy that oil and gas producers and oil service
implementation cost and accelerates the adoption companies of all sizes can readily pursue.
successfully
ZipLine* low-friction coated
wireline—over 189 million ft
of cable run
Solving addresses
Valve problems getsoperational
us back to a baseline. Innovating
challenges innovative employees
potentially who have allowing
costly maintenance, great ideas but who
pressure
getsdiverter
of us to new levels of performance that have not been see little hope
pumping in getting
operations their ideas
to continue heard.
at their maximum
attained
The impactbefore.
of pumping large volumes of diverter efficiency. diverterplus.com, nov.com
Leadersstimulation
through who lack the processequipment
pumping knowledge isand inter-
a well- Issue strategic challenges
personal skills tochallenge.
lead innovation can inadvertently stifle Disks
All improvements Beads
are welcome, but not all improvements
known industry DiverterPlus and National
innovation.
Oilwell Varco They
(NOV) can squash ideas. They their
have coordinated can hijack
efforts to are strategic. Options to address those challenges should
discussions.
minimize orThey can also
eliminate the(paradoxically)
accelerated wear beand
too poten-
open come from broad sections of the organization. A challenge
to perspectives
tial damage thatand canend
occurup with
whena particulate
bunch of half-baked
diverter may be related to specific operational processes (e.g.,
ideas that
embeds runthe
into into execution
valve problems manipulation
insert. Through or never get attaining a 30% increase in equipment uptime). Recruit-
moved
of to a practical
the polymers’ state. properties and geom-
mechanical ing with more diversity is a people challenge. Reducing
Leaders
etries whomanufacturing
via new are excellent at leading innovation
techniques of its Div+ flaring by a certain percentage is a challenge related to the
can get
line the discretionary
of particulate diverters,effort required out
DiverterPlus has of
been their environmental, social and governance topic.
teams Flakes Powder
able toto come forward
eliminate the need withfor
great ideas and
additional will see
equipment Challenges can start an innovation cycle. Staying
theaggressive
in fast adoption of new
diversion processes and
deployments. activities
Utilizing to
NOV’s focused on strategic areas will ensure outcomes that are
raise Thunder
Blue the bar. Leaders
valve and whotheare poor at this
additional datawill fum-
gained high value and pragmatic.
ble away
from great ideas
cooperative and promulgate
development, environments
the insert compound in Now is the time to get even more innovative. It will
whichwith
used people are unlikely
the valve is highlytoresistant
be interested
to wearin and
giving take leaders with the right thinking, using the very best
their ideas
exhibits noneor receive the support embedment
of the problematic to get these issues
ideas tools and people to get it done. Leaders need to encour-
DiverterPlus and NOV developed a solution to minimize wear
out to their boss
traditionally and the
associated team.
with largeEven worse,
particle poor
diverters. age their organizations to engage and apply their inno-
and damage when pumping large amounts of diverter.
innovation
The combined leaders mayeliminates
system also drivedowntime
away thoserisk and vation muscle, and it can be done practically.
(Source: DiverterPlus)
EXCLUSIVE INTERVIEW
patenergy.com/universal
Aggreko powers a new cryogenic gas
processing facility in the Permian Basin
*As seen in this edition’s feature, highlighting Aggreko’s 2020 Energy Innovators nomination.
With pricing between Northern White sand and regional sand, EnviroProp provides an
economical method of improving fracture performance while reducing carbon
footprint. A win win for operators.
For more information on the numerous other enhanced properties of EnviroProp: we would be happy
to give an in-person presentation or provide documentation.
Contact:
Jim Berry Charles Keith – Petroleum Engineer
(405) 474-7876 (405) 802-3710
jberry@transloadandlogistics.com Charles.keith@watertrac.com
offshore
ADVANCES
tices to identify areas in which what we are doing can attention to how the experiment is designed to ensure
be done faster, cheaper and more effectively in terms successful results.
of higher production results,” Ali Daneshy, president of “One thing we learned is the design of the experi-
Daneshy Consulting International, shared with E&P. ment, which is knowing what we are testing and how,”
Since the beginning of the year, capex among U.S. Kashikar said. “The inventory of wells that we will have
E&P companies has been revised down by $51 billion, to test different parameters is going to be smaller for at
according to James Jang, lead analyst with Westwood least the next six to 18 months. It becomes even more
Global Energy Group, in a market outlook presented critical that we design the right experiments and that
on May 8. A sub $30/bbl WTI environment will con- we begin collecting data on many more wells than we
tinue to push E&P companies to take cost reduction have in the past. Then we use those data to drive those
programs, he added. answers faster collectively.”
The effects of those cost reduction programs are visi- Experiments require an expensive commodity—time.
ble in the declining rig count numbers and the number “The feedback loop has been a big challenge for the
of wells completed. industry. We’ll install a particular completions design
In a May 14 analysis, Rystad Energy estimated that and then wait,” Scott Gale, global business strategy man-
the total number of started fracturing operations in ager for Halliburton, told E&P. “It takes several months
the U.S. would end up at about 300 to 330 wells in May of production to determine if that design was successful
2020, down from April’s 337 wells. Some activity is still and is based on the open metric of cumulative produc-
going on, with 92 started frac operations observed so far tion over a designated time frame like 30 or 60 days.”
in May on a standard-month basis. Data and time are interdependent commodities that
“A modest recovery is expected in the third quarter are often at odds with each other. Too much of one
of 2020, but stable WTI oil prices in the low- to mid- and too little of another leaves questions unanswered.
$30s are required to see this recovery in selected core Too much of both can overwhelm a system with too
acreage positions operated by producers with strong many answers to unrelated problems. In the industry’s
balance sheets,” said Artem Abramov, head of shale current situation, a critical question that arises is how
research for Rystad, in the report. to manage the process of improving operations, well
Fewer wells drilled and fewer DUCs mean there is completions and production. However, a team looking
less opportunity to test completion designs, according back on specific projects and asking the right questions
to Kashikar. Fewer test opportunities require greater of the data can find areas of improvement.
“I do not doubt that an in-depth analysis of the data “By the time you get to 20 or even 30 wells, humans
and information that we have within each company will don’t have the bandwidth to be able to ingest and ana-
lead to changes and alterations in existing practices that lyze all of the data generated,” Robart said, offering as
will make it better and more efficient,” Daneshy said. “It an example the slugging and liquid loading in naturally
also would allow technical staff to review and compare flowing gas wells. “If you put a decent engineer on it
what they’re doing with what others have done and that had the time go through all of their wells, then
determine if there are better pieces of technology that they’d be able to find the problem. But they just don’t
could be borrowed and adapted from other companies have the time or the bandwidth to be able to review
that will help improve operations.” a time series for their wells and do the analysis that is
needed to identify the problem.”
’
their successes.
great when it is small Two E&P companies that have done just that are
The COVID-19 pandemic and low-oil price environ- Birchcliff Energy and Parsley Energy. The companies
ment will continue to present a challenging operational use Cold Bore Technology’s SmartPAD to optimize their
environment. When there is a reset in the markets like completions process. Billed as an operations system for
the one underway, old rules and plans are discarded, well completions, the system uses valve positioning and
and new ones are made. Planning for the years ahead pressure monitoring sensors bolted onto the wellheads
is improved through the use of digital systems to help to track operational data for all services, even those gen-
make it possible to find and decode the small details erated by other service companies. All data are collected
that have limited production returns. and processed into a single dataset in a standard format
“We see the next decade as the ‘digital decade.’ that is suitable for viewing on a single screen. The auto-
There’s no doubt that the integration of datasets is mated collection of time-stamped data reduces workload
going to be a key factor in integrating with different while increasing accuracy, according to the company.
disciplines,” Gale said. “Incorporating exploration and
drilling data into a completion design that is then tied
to a well’s performance through production activities
like artificial lift is vital. Enabling those integrated
datasets into a cohesive decision-making application
is an important part of where the industry goes
more broadly.”
The challenge, he said, is getting beyond the “if you
build it, they will come” mentality that occurs when all
of the data are located in one place.
“If we have clarity about the problems trying to be
solved and the outcomes trying to be achieved, then
what data feeds are necessary to achieve those outcomes
become clear,” he said.
The hundreds of billions, if not trillions, of datapoints
from the 138,170 completed horizontal wells tell a story
that requires intensive cleaning, sifting and sorting
before reading. That is when the beauty of algorithms,
the cloud and digitalization are most visible.
Data systems and optimization tools are programmed
to analyze the numbers, to dig in and find the problems
in a well faster and more efficiently than humanly
possible, according to Chris Robart, chief commercial
officer for Ambyint, a provider of artificial-intelligence- Technicians bolt SmartPAD valve positioning and pressure
powered production optimization software. monitoring sensors onto a wellhead. (Source: Cold Bore Technology)
Calgary-based Birchcliff Energy has used SmartPAD we are in now, it may be advisable to have an external
since 2018, and it has realized significant efficiency group take a look at what we’re doing and advise on
gains in the two years since the system’s deployment. if there could be improvements. The combination of
“The system has really helped us get the non- outside and inside views is more likely to come up with
pumping time per day down because we’re tracking improvements than an internal group only.”
the time between stages in real time, not just after Daneshy believes that the industry needs to look for
the operation,” said Mike Zimmerman, completions ways of making the whole shale development process
superintendent for Birchcliff Energy. “A good day financially viable in a lower oil and gas price environ-
for us would be 16 to 18 stages pumped. In April, ment. “Obviously, we cannot afford to spend millions
on our Pouce Coupe pad, we pumped 2,860 tons of and millions of dollars in a well and hope that we’re
sand and completed 25 stages in a single day. It was going to get good production. Because at the end of
chasing the minutes between pumping stages or well the day, it has to be a profitable venture,” he said.
swaps that made it possible for us to get those addi- Rather than request a larger budget, another option
tional stages.” Daneshy suggested is to try to use more reliable comple-
Zimmerman added that being able to see the com- tion practices that will make it possible to produce the
pletions data wherever and whenever he needed was a reservoir with fewer unnecessary expenses. “This is done
significant advantage, helping to identify potential oper- not by beating up on the service companies, but with
ational issues early. more efficient engineering,” he said.
“About five years ago, we made efficiency a key word,” For example, by reviewing past operations and identi-
said Agustin De Fex, senior manager for completions fying inefficiencies, an E&P company can shave time off
with Parsley Energy. “We started keeping track of non- its processes, reducing the number of days spent on a
productive time and areas where we could make the well site and deliver cost savings.
operations safer and better. This was a manual process
‘
that, as we started to grow, would take several hours of
work to track and write down data.” As water retains no constant
In 2019 the Permian Basin operator began working shape, so in warfare there
’
with Cold Bore Technology’s SmartPAD system and
noticed an immediate improvement in its operations. are no constant conditions
“We can now look at the operations 1 minute at a Let data give peace in the knowledge that it provides.
time and focus on the operation, making it safer,” Historians will see in 10 years that the low-price oil envi-
De Fex said. ronment of 2020 passed, just as it has multiple times
before. The industry will get past this crisis and on to
‘
better times. Hiding is not a destination the oil and gas
Do not repeat the tactics industry sails to.
which have gained you one From this storm, the industry will emerge stronger,
said U.S. Secretary of Energy Dan Brouillette in a
victory, but let your methods CERAWeek Conversations video with Daniel Yergin,
be regulated by the infinite IHS Markit vice chairman.
’
“I think you’re going to see the U.S. energy industry
variety of circumstances bounce right back. These are some very strong players
Interpretation of data and the application of the anal- and, importantly, they’re very innovative players,” he
ysis are, in the end, only as good as the human reading said, before going on to share a comment once made to
the reports. Bias is an inescapable condition of being him by an energy minister.
human, and it is reflected in all data that exist. In any “He said that every time we do something like
type of work, there is a prejudice in favor of one’s prac- this, everybody thinks that the United States is going
tices, making it difficult to see areas in need of change. to leave the playing field, that the United States is
External perspectives can challenge the status quo, dead or certain parts of the industry are dead—and
bringing a variety of solutions to a difficult exercise. that never really happens,” Brouillette recounted.
“Generally, most of us, when we do engineering and “They take a small break and they come back
technical work, we believe that we’re doing the best stronger than ever. And I do think that’s going to
that can be done,” Daneshy said. “In a situation like happen again.”
www.edfenergyna.com
Chris Marland, Noble Energy; and consistent variable naming and data storage, all needed
Kendall Zakariassen and Saraan Vercillo, Moblize to be addressed to apply algorithms from simple logic
statements to more complex mathematical calculations
15k
the raw data coming in
Noble Well 3
are correct. The data 20k Noble Well 2
need to be stored on Noble Well 1
secure servers available 25k
for approved users with
a robust and consis- Days
cation of asset health. If your asset health isn’t good, Visualizing emissions management
you’re going to have two different situations. You’re Understanding and managing the proliferation of data
going to increase your emissions and you’re going to collected during a company’s emissions management
reduce your reliability of that asset. We are seeking to programs often presents challenges with data organiza-
solve those two actions to reduce emissions.” tion and comes with steep learning curves. But visualiz-
ing problem areas of methane leaks can save time and
money. Based on technology designed in collaboration
with the U.S. Department of Defense, Geosite serves sat-
ellite imagery that detects methane emissions at scale.
“There is a chasm between the data and the end
user,” said Burke Greer, lead geographical information
systems scientist with Geosite. “It’s really hard for peo-
ple, especially those who don’t have the training, to
take those new data sources and use them in their work-
flows. One of the things that we’re doing at Geosite is
making it easier for people to integrate real data into
the workflows that they’re doing, and methane emis-
sions are an example of that.”
Geosite’s technology combines a variety of data
sources like satellite imagery, sensor data and drone
mapping into an interactive operating system. It pro-
vides the ability to send workers in the field to the right
location to mitigate methane emission leaks.
“At its heart, Geosite is a map,” Burke said. “It’s a map
Crusoe Energy’s Digital Mitigation System helps turn natural that contains spatial data and information. The way that
gas that would otherwise be flared into electricity for data we’ve structured our map, it’s able to leverage cloud
processing centers. (Crusoe Energy) technology. That means a lot of people in your organi-
zation can work with, access and see the same data and
information on the map. For a use case like methane,
what that means is we type in satellite-derived methane
emission estimates that are visible on the map. And
your team that’s out in the field can see those data.”
Burke explained that if a methane emission cloud is
visible in the satellite data, the team working in the field
can see the emission cloud in the map with different data
layers integrated into the visible cloud. A team could then
visit the site, add video imagery and more high-resolution
data to further enhance the available information.
“For something like methane, our platform is really
set up for integrating different data sources so you
can take those safety data and emission data from the
methane satellite imagery sources and use those in your
workflows on the ground,” Burke said.
Mitigating flaring
One of the largest impediments to widespread emis-
sions management success in the upstream oil and gas
industry is the flaring of natural gas. Operators burn
Qnergy’s compressed air pneumatic system combusts methane off the excess natural gas they can’t sell and also burn
gas that would normally be vented into the atmosphere. off methane in the gas in the process. But flaring also
(Source: Qnergy) releases CO2 into the atmosphere. According to the
U.S. Energy Information Administration, Texas totaled decarbonize, among others, the oil and gas industry.
0.65 Bcf/d while North Dakota amassed 0.4 Bcf/d of The fund supports technologies and applications that
flared gas in 2017. reduce methane and CO2 emissions and can recycle
For companies looking to meet either internally and store CO2, according to the OGCI website.
established goals or regulatory rules for flaring reduc- In April, the OGCI fund, along with others, pro-
tions, technologies that detect carbon emissions and vided Qnergy with $10 million in Series B funding to
reuse associated gas have emerged as adaptable options. accelerate the deployment of its compressed air pneu-
Crusoe Energy System’s Digital Flare Mitigation sys- matics product, CAP3. The application, which couples
tem converts natural gas that would otherwise poten- Qnergy’s remote power generators with air compres-
tially be flared into electricity to power energy-inten- sors, offers a low-emission alternative to gas pneumatic
sive computing at the well site. Crusoe president and devices, which vent spent gas into the atmosphere and
co-founder Cully Cavness explained that the flare mit- are often used in upstream oil and gas operations.
igation system includes containerized mobile modular “Gas pneumatics are responsible for about 20%
data centers and power generation modules located at to 40% of the gas industry’s supply chain in North
the well site, which are fueled by the otherwise flared America,” said Qnergy CEO Ory Zik. “And methane
natural gas. is a very potent greenhouse gas at 25 or even 85 times
“The natural gas goes into the power generation more than CO2, and the gas industry is very sensitive to
module and is the fuel for a generator,” Cavness said. those methane emissions. Pneumatic devices are among
“A piece of equipment that is very common in the oil the easiest to solve. The same technology that is used
field is power generation, which is fueled by natural gas for these pneumatic devices can be used when you use
or diesel. We’re using a custom-designed and config- compressed air or clean air as the source of power. All
ured type of power generation equipment. Basically, it’s you need conceptually is a power generator that com-
reciprocating engines or turbines.” presses the air and replaces natural gas or methane as a
Cavness explained that power is generated by con- source of power with compressed air.”
suming natural gas and combusting it in the power Zik explained that Qnergy’s technology is based on
generation process, generating electricity, which is then the Stirling engine, which generates electricity by a
used to power the modular data center. cyclic compression of air and gas at differing tempera-
“Then that is distributed to a customized electrical tures. Qnergy’s CAP3 system combusts the normally
distribution system that powers hundreds of servers vented methane.
inside of this containerized data center, and those are “The oil and gas industry is focusing aggressively
very energy intensive servers doing things like block- on reducing methane emissions throughout the sup-
chain processing,” Cavness said. ply chain,” Zik said. “About 20% of those emissions
According to Crusoe, the Digital Flare Mitigation sys- are low-hanging fruit that can be updated through
tem can reduce methane emissions by up to 95% and pneumatic devices. After focusing intensely on fugitive
CO2e emissions by 39%. emissions through leak detection and correction,
“At the end of the day, we’re looking for really ener- now the next stage is venting, and this is what this
gy-intensive, constantly running computing processes technology serves.”
so we can have a high demand for energy,” Cavness Sam Gabbita, OGCI Climate Investments venture
said. “That’s what pairs well with the flaring—it’s a high director, said Qnergy’s technology was appealing to the
energy waste pairing with the high energy demand.” fund because it offered low-cost and reliable energy that
can be applied at scale across much of the industry.
Funding innovation “There are about 250,000 pneumatic devices just in
Securing funding for operations and new technologies the U.S. alone,” Gabbita said. “And these are emitting
in the upstream industry was challenging even before about 14 million tons of CO2 when you convert the
the COVID-19 pandemic, and it remains a substantial methane equivalent. So the opportunity to use Qnergy’s
challenge amid the energy industry collapse. But the remote power engine to basically run compressed air
Oil and Gas Climate Initiative’s (OGCI) Climate Invest- rather than typical methane was a beautiful marriage.
ments fund maintains a long-term view of emissions We liked the fact that there was established technology,
management technologies. and we loved the fact that we could use this established
The OGCI Climate Investments is a $1 billion-plus technology to decarbonize an important part of the oil
fund that invests in technologies designed to help and gas value chain.”
Recent gas hydrate field programs in India support the stand large conventional biogenic gas resources and
growing hypothesis that large gas hydrate deposits need the associated gas hydrates above them. As these large
an immediate local overlying lithologic seal. biogenic gas plays become sanctioned for development,
Large gas hydrate deposits in India’s Krishna the exploration companies should consider setting
Godavari Basin were direct-detected from seismic targets for developing the secondary gas hydrate that
response, and pressure cores confirmed there was a remains and may be in reach.
tight lithologic directly over the gas-hydrate-filled sand.
In contrast, the same sand in a step-out, also near the Long-term gas hydrate production
base of gas hydrate stability and subject to the same tests are key
vertical methane migration, was not saturated with Preparations for a long-term production test, a joint
gas hydrate. The difference between the two locations project of the U.S. DOE and the Japan Oil, Gas and
was the absence of the sealing Metals National Corp., are
facies where the sand was well underway on the Alaskan
water saturated. North Slope, where a strati-
The ability of gas hydrates to
The ability of gas hydrates graphic and monitoring well
help concentrate and preserve to help concentrate and was drilled in December 2018
biogenic gas is likely an import- preserve biogenic gas in the Prudhoe Bay Unit along
ant mechanism for the preser- the Eileen gas hydrate trend.
vation of biogenic gas deposits. is likely an important This coming winter, the gas
Escaping gassy fluids from the mechanism for the hydrate production wells at
methane generation window the site will be completed with
can be available for capture
preservation of biogenic the goal of demonstrating
within the gas hydrate stability gas deposits. sustained long-term produc-
field, but the overall migration tion of gas hydrates. The time
will happen in the dissolved line for international R&D to
phase and would, without local seals, escape the system. demonstrate safe, sustainable and economically fea-
Hoteling of biogenic gas as gas hydrate as a mecha- sible gas hydrate production is on the near horizon
nism for free gas concentration mechanism has been between five and 15 years.
proposed for Camden Hills in Mississippi Canyon 348 Given the development time for the biogenic gas
in the Gulf of Mexico and at the multi-Tcf Shwe gas fields being developed by the industry, this will be just
field offshore Myanmar. Recycling of gas hydrates at the in time for oil and gas companies to add gas hydrate
base of gas hydrate stability due to rapid sedimentation production to their Arctic and deepwater biogenic gas
and burial could be an important mechanism to under- field production.
We can
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Shihong Chi, Felix Dias and Zakir Hossain, basin margin facies through central basin settings and
ION Geophysical; Jhon Rivas, independent consultant; into distal basin floor facies (Figure 1).
and Yijie Zhou, Noble Energy
Petrophysical analysis
tie, background model building and inversion. The rich and high-porosity zone is located in the lower Vaca
seismic data quality is relatively good in the target zone Muerta of the southeastern part of the basin.
(Vaca Muerta to Todrillo). However, this seismic volume
comes from different surveys, and the spectra of differ- Conclusions
ent surveys are not quite balanced, which may affect the An integrated study of the Vaca Muerta Formation,
inversion results. Neuquén Basin, was performed using mega-merged 3D
All the wells inside the seismic survey are tied with seismic data covering about 12,000 sq km to estimate
seismic before inversion. The Gardner equation is used the kerogen, porosity and lithology (Figure 2). Four key
to predict the density log for the wells without the den- tasks were included in this project: regional structural
sity measurement. and stratigraphic interpretation, petrophysical analysis,
The inversion results show a relatively good match with post-stack inversion, and geocellular model building.
the wells. The lower Vaca Muerta shows relatively low acous- 3D structures of the Vaca Muerta are revealed from the
tic impedance (AI), which is a typical Kerogen response. mega 3D interpretation. Regional scale stratigraphic fea-
The inverted AI volume, together with the well logs inter- tures and lateral transitions have been evidenced from a
pretation results are then later integrated using the geologic single seismic volume for the first time.
modeling technique for detailed rock property estimation. Geocellular modeling combines the well log data
and inverted AI volume together with the geological
Geomodeling information to produce a detailed description of the
A geocellular model represents the reservoir geology geological deposition and kerogen distribution. The
and the vertical and horizontal variation of the reservoirs basin-scale geocellular model provides a powerful tool
in detailed log scale. The model incorporates the 3D for sweetspot identification during the exploration
structural framework, the conceptual depositional sys- phase and reserve estimation and well planning
tem (facies) and reservoir sublayers. The reservoirs and during field development.
formations above and below the reservoirs, constraining
the structural model, are divided first into zones and
later into thin layers and into a 3D mesh of cells until the
cells with thickness of rocks can simulate the reservoir
properties. For each cell, just one lithofacies type can be
assigned, but it can storage multiple reservoir properties.
The cells cut by wells are populated with facies and
reservoir properties, using averaging methods such as
arithmetic mean. The values of facies and a cell’s proper-
ties loaded from well logs are distributed or interpolated
through all the cells of the geocellular model based on
the spatial continuity concepts. The spatial distribution
is carried out by applying geostatistics, which includes
data analysis and deterministic and stochastic algorithms.
Sequential Gaussian Simulation is applied to create
heterogeneity-property volumes honoring input/output
of local data, histograms and variograms. Rock physics
constraints and a co-located cokriging method were used
to honor the well data and seismic inversion result simul-
taneously. Finally, the geocellular model was populated
with petrophysical and elastic rock properties that can be
used to assess, develop and manage the reservoir.
Two types of geomodels are created: one using well
data only, and the other using both seismic and well
data. By comparing two geomodels, significant values
of applying seismic data in delineating the 3D rock FIGURE 2. Seismic surveys overlay a topographic map in which the
properties are demonstrated. From the basin-scale geo- red dots are wells used in performing well tie and velocity model
models, it was observed that the highest total organic building for time to depth conversion. (Source: ION Geophysical)
Managing transitional
drilling challenges
A new active torque cutting structure is saving millions
of dollars in transitional drilling applications.
tions. Figure 1 shows a virtual carbonate formation that enabling the cutter to fracture high-compressive-strength
was created using the IDEAS integrated dynamic design rocks more efficiently while generating less torque and
and analysis platform to reproduce the drilling condi- vibrations compared with a conventional PDC cutter.
tions of the presalt carbonates. These new bits were designed to improve footage and
Information about the formation geological properties ROP while maintaining directional control and mini-
obtained from the drilling zonation workflow was then mizing shock and vibration levels in challenging drilling
extracted to build an engineering model using the inte- applications that can cause impact damage to conven-
grated dynamic design and analysis platform. An advanced tional bits. Depending on the offset wells, bit selections
4D drilling dynamics model predicts real-time vibrations were made to provide the optimal cutting structure
and stick/slip and enables engineers to optimize drilling for each well in the drilling campaign. Several prejob
parameters for drill bit designs and drillstring configura- simulations compared the benchmark bit to the newly
tion. In addition, the model simulates drilling interactions designed bits. The simulations with the new drill bit
in a virtual environment to predict bit performance while designs showed a 40% reduction in shocks and vibra-
eliminating costly trial-and-error field tests and enabling tions and a 57% improvement in ROP.
the achievement of desired results on the first run. All
models are verified and validated extensively using theo- Results
retical calculations, commercial finite element packages, Drilling optimization in the Búzios Field was success-
in-house drill rig tests, full-scale rig tests and field tests with fully achieved by using the combination of stratigraphic
MWD or downhole drilling dynamics sensors. zonation for drilling and model-based approach for
customized drill bit designs. There were eight runs
Modeling bits for presalt application using the proposed drill bits. Except for the first run,
The integrated dynamic design and analysis platform where the existence of Drill Zone C was unknown, the
created a model for application-specific bit designs to 12¼-inch reservoir sections of all wells were drilled in a
optimize drilling efficiency while aiming to drill the single run. On the last attempt, the bit run achieved an
entire reservoir section in a single run. Two new cut- average ROP of about 27 ft/hr—197% higher than the
ting structures were developed to tackle the various offset average—and reached interval TD after drilling
carbonate complexity within the field. Figure 2 shows about 1,716 ft in a single run. As a result of the perfor-
two fit-for-purpose drill bits featuring the Stinger con- mance improvement, this bit run set a new performance
ical diamond cutting element that were proposed to benchmark with regard to cost per foot for the 12¼-inch
enhance performance and durability. section in presalt fields offshore the Santos Basin.
The conical-shaped cutter incorporated in the new Furthermore, while optimizing bit designs and drill-
bit design is a cutting element that combines 3D geom- ing performance were initially motivated to tackle the
etry with superior impact strength and wear resistance, challenging presalt carbonates in Brazil, an applica-
enabling increased ROP and footage in hard-to-drill tion-specific bit design is applicable to any drilling sce-
formations. It has twice the diamond thickness of conven- nario and can be applied to different fields and geo-
tional PDC cutters and is manufactured from synthetic dia- graphical locations using the presented workflows.
mond material engineered to provide superior resistance
to abrasive wear and impact loading. The conical shape Editor’s note: This article was adapted from the SPE-
places a highly concentrated point load on the formation, 196057-MS paper.
A novel approach to a
growing problem
A vessel-led approach to surface intervention addresses the issue of
retiring deepwater and ultradeepwater pipeline assets.
tional structure was needed to support the rigup of a Once the pipeline was recovered to the vessel,
BOP and injector system and to allow a safe workspace C-Innovation removed the PLET and installed a slip-on
in the vicinity of the equipment. The flowline was lifted wellhead connector. Then a tractor and 30,000 ft of CT
and threaded through the moonpool of the Island were rigged up, which enabled a jetting head to remove
Venture, C-Innovation’s flagship intervention vessel. and wash the asphaltene blockage back to the vessel.
The full extent of the blockage was unknown at this Returns were routed through a shaker to remove solids;
point. The flowline needed to be flushed to maintain gas was vented at a vent boom and liquids were routed
cleanliness after the blockage remediation, which required to four 500-bbl tanks.
service vessels at the tension-leg platform (TLP) and PLET. The remaining pipe that still needed to be remedi-
A large capacity of hazardous material storage and offload- ated was raised to the deck of the boat utilizing a ball
ing to another vessel while on site was needed to handle the grab tool. Once at the surface, the pipe was hung off on
substantial quantities of solvent that were required and the the support structure and pressure control equipment
anticipated volume of returns from the flowline. were connected and tested. The pipeline cleaning pro-
The downstream side of the flowline (on the TLP) cess began using a WWT tractor that pulls the CT into
required a temporary interface to the riser and nitro- the pipeline to enable extended cleanout distances.
gen packing and water flushing systems installed. The The first run was 14,500 ft. The tractor was left to run
nitrogen packing was to provide a positive indication and perform its washout, and then the whole assembly
of a breakthrough on the was pulled back out.
solid blockage, and the water Internal well tools were
pumping system was to flush As the necessity for pipeline used to set another plug, then
the remediated flowline to pulled out. The pipeline was
regulatory cleanliness stan- decommissioning spreads, laid down, the vessel transited
dards for decommissioning. the challenges of deepwater 14,000 ft down the line and
However, there was only a cut was performed. Three
enough room on the platform
decommissioning will more tractor CT runs were
for the temporary system that become a global issue. made, establishing communi-
directly interfaced with the cation through the pipeline.
riser. All other systems were All segments of the pipeline
deployed on a platform supply vessel (PSV) with a flex- were flushed and abandoned in place. The whole project
ible hose connecting the systems on the TLP and the was completed to Bureau of Safety and Environmental
system on the PSV. Enforcement regulations, with no recorded releases to
The flowline was safely recovered and secured, and the the environment and no HSE incidents.
interface was changed for intervention. The end of the flow-
line downstream of the blockage was packed with nitrogen. Equipped to meet future challenges
Asphaltenes blocking the flowline were removed. However, One of the main objectives of decommissioning is to
due to conditions more extreme than the client expected prevent the acute and long-term release of trapped
to encounter, the removal of all asphaltenes was prevented. hydrocarbons inside a pipeline on the seafloor into
The client decided to cease intervention and demobilize the environment. To that end, C-Innovation has joined
with the solution deemed a success. forces with one of the key vendors involved in this proj-
ect, WWT International, to devise a new tractor that
Phase 2 will reach even farther than before and help reduce the
In 2019 a Phase 2 solution was undertaken through number of cuts required. By reducing the number of
C-Innovation to continue to complete the work scope cuts, many days of necessary work can be reduced.
safely and without impact on the environment. In this By lifting a pipeline off of the seabed, threading it
case, the flowline blockage remediation was performed through the vessel moonpool and supporting it while a
with a CT tractor system supplied by Houston-based WWT surface intervention was performed, the client saved about
International. Four vessels were involved: the Island Venture, 50% of costs and a significant amount of time that would
Island Performer, Carol and Fast Hauler. Pipeline communica- have been associated with bringing in a rig to perform the
tion was achieved to the platform following four CT tractor same work. Discussions are underway with another two
runs. Finally, a successful flush of the pipeline to seawater operators for deployment of a pipeline intervention
was required to enable riser cut and abandonment. technique such as this one in the GoM.
EIGHT CONSECUTIVE ONE-RUN HORIZONTAL WELLS After this, the drilling services continue to update
9,000 170 the latest historical data while monitoring the live data
166
feeds from each rig to seek optimal drilling perfor-
8,476 Footage Drilled in Lateral (ft)
8,323 mance and validate the analytical models. This informa-
Avg ROP (ft/hr)
tion is fed into the road maps and optimization reports
8,000 7,940
for field personnel to use as a drilling guide.
7,733 7,742 7,778
7,704
7,565
Case histories
124 In a project in the Permian Basin, an operator was experi-
7,000 encing challenges while drilling an extended-reach well in
109
the Wolfcamp Formation. The operator’s two main objec-
99
101
106
tives were to improve drilling performance and decrease the
94 rig time necessary to drill the well. Earlier BHA designs on
89
offset wells had encountered issues with similar well profiles,
6,000 85
including reduced ROP and an inability to reach TD.
Well 1 2 3 4 5 6 7 8
Using historical data from conventionally drilled wells
FIGURE 2. Footage drilled versus ROP showed an overall upward in this formation, experts helped the operator develop
trend in ROP as the BHA was continually optimized, culminating an optimized BHA configuration. By applying learnings
in a record run at 166 ft/hr. (Source: Gyrodata) from the data, Gyrodata suggested the operator incor-
porate a motor-assisted rotary steerable system BHA
impacting drilling performance. Understanding the lim- and provided recommendations on better MWD equip-
itations in slower offset wells also is critical. Just because ment for the formation’s challenges. After implement-
one well took longer to drill than surrounding wells does ing the new BHA design, the operator was able to drill
not mean the learnings from that well should be dis- a 9,015-ft lateral in only one run of 43.84 drilling hours
carded; rather, the entire operation should be examined at an average ROP of 206 ft/hr. Collectively, this pro-
so that limitations, either with drilling or on the rig, can cess reduced rig time by nine days and achieved total
be identified and accounted for. At the end of this pro- cost savings of about $500,000 (Figure 1).
cess, a drilling road map with optimized parameters based On another project, an operator wanted to use the
on the pacesetter well can be created and used to repli- lessons learned from remote monitoring of its previous
cate performance of the benchmarked well. wells to optimize its current eight-well pad. Drawing
from the historical database of previous work done with
Enabling success this operator, Gyrodata developed a new plan for the
Once well objectives are identified, the execution phase pad. Implementing an optimized BHA with a new motor
involves multidiscipline collaboration. A remote oper- selection, Gyrodata also used data coming into the remote
ating center typically brings together several functional operating center to continuously update the BHA config-
experts from drilling engineering, drilling optimization, uration and drilling parameters for each well.
bottomhole assembly (BHA) design, survey tool selec- The eight wells were drilled successfully as consecutive,
tion and configuration, and well planning to formulate one-run horizontals. After drilling each well, ROP and
the drilling road map that will align with the pacesetter footage drilled in the lateral were correlated to ensure
well and, should performance increase beyond the that the BHAs were continuing to improve drilling perfor-
intended results, become the next pacesetter well. mance. The project ultimately showed an upward trend in
The well planning/well engineering team ensures average ROP across the eight wells, and ROP of 166 ft/hr
that well design does not exceed mechanical limitations set a record on the final well of the pad (Figure 2). Based
and other dysfunctions that could prevent the well from on an assumed spread rate at current pricing, the lack of
successfully reaching total depth (TD). This informa- damage to the equipment in the optimized BHA, and all
tion is then used by other groups within the remote the time saved by doing each well in one run, the opera-
operating center to inform their review. Survey tool tor saved hundreds of thousands of dollars.
selection takes place next, with the team determining
the ideal survey tool for the parameters detailed in the Editor’s note: This article was submitted prior to the acquisi-
well objectives. This could be a gyro tool or MWD tool, tion of Gyrodata’s directional drilling product line by Intrepid
depending on the analysis of risks. Directional Drilling Specialists.
ZERO DIGITAL
Level Paper Tickets,
0 Whiteboards Level SIMPLE SOFTWARE
1 Basic Desktop Software Level CLOUD OILFIELD
2 SaaS, IaaS, PaaS
Level
3 BUSINESS INTELLIGENCE
Level
Telemetry, Smart Devices,
4 IoT, Business Analytics
MOBILE OILFIELD
Mobile Applications
Level
ADVANCED DIGITALIZATION 5
There are six levels of automation ranging from notes
Block Chain, Smart Contracts,
on a simple whiteboard to advanced analytics. Digital Twins, Predictive Maintenance,
(Source: RigER) Machine Learning
Ty Mitschke, BP; and Rob Shoup, Sean White racy, the development of new error models involved in
and Stephen Forrester, Gyrodata survey uncertainty calculations and the realization that
better data quality and survey accuracy enhance a well’s
Case history data were shown to statistically agree with the position
BP ran a rate gyro survey system through a cased-hole of the MWD surveys, thus increasing confidence in the
cleanout BHA inside the production casing of a well in placement of the wellbore. By being unaffected by the
the Gulf of Mexico. The BHA incorporated a debris- string magnet, the solid-state gyro enables BP to imple-
recovery tool with a high-strength permanent magnet ment a shorter, more effective BHA design and elimi-
designed for large-volume cleanup of ferrous debris in nates the need for extra collars and other costly com-
the wellbore. When the rate gyro survey was compared ponents from a more conventional configuration. In
against the definitive MWD survey, the two surveys did addition, BP and Gyrodata took several lessons learned
not agree within statistical expectation. Post-job analyses for future implementation:
showed that all survey tools passed their respective QA/ • When running a magnet as part of a cleanout BHA
QC tolerances. run, the OmegaX solid-state gyro system is not
Further investigation into the gyro run revealed that affected by magnetic interference regardless of the
although the gyro BHA landed in the expected loca- placement of the magnet in the BHA configuration;
tion, the spinning-mass gyro sensor had sat within 16.16 • The OmegaX system enables more flexibility in clea-
ft of the string magnet throughout the survey run. It nout BHA configuration by eliminating the need
was suspected that the magnet’s large magnetic field to reposition the magnet relative to the gyro or to
and proximity to the gyro system in the BHA had influ- adjust the gyro landing point to avoid the magnet.
enced that survey run. This enables the magnet to be placed closer to the
To prove this hypothesis, a subsequent well with simi- bit, thus potentially improving the efficiency of the
lar casing design and cleanout BHA design was chosen cleanout operation; and
to deploy the OmegaX solid-state gyro system in tandem • The time necessary to conduct a post-job roll
with the rate gyro system to confirm the interference test with the rate gyro is eliminated via use of the
from the string magnet, eval- OmegaX system. This effec-
uate the viability and perfor- tively closes the QA/QC
mance of the solid-state system loop at the well site by being
against the existing technology, able to receive a final defin-
and to prove its viability for
Improving the precision, itive survey within hours of
future use in BP. An additional accuracy and speed retrieving the tool at surface.
objective was to evaluate the of wellbore surveys Subsequent operations are
solid-state gyro’s sensitivity to then able to proceed sooner.
the string magnet placed in the has been the dominant
cleanout BHA. factor driving the Conclusion
The well profile consisted Improving the precision, accu-
of a vertical section with less development of solid- racy and speed of wellbore sur-
than 5 degrees of inclination state gyro technology. veys has been the dominant
from the seabed at 5,042 ft to factor driving the development
the kickoff point at 7,850 ft, of solid-state gyro technology.
followed by a gradual build With this capability clearly
from 7,850 ft to 10,609 ft and about 42 degrees of proven, however, other benefits have become more
inclination. This trajectory was maintained on an East apparent. Due to its smaller size and the inherent
heading (about 92 degrees) to 18,202 ft. The well then advantages of solid-state technology, a system like
proceeded to drop gradually in inclination, first to OmegaX can help an operator implement a wider
37.5 degrees at about 19,142 ft and then to 37 degrees range of BHA designs, as BP learned from this project
until reaching total depth at 24,806 ft. Surveys were with the cleanout BHA. In addition, the results prove
collected at every stand while pulling out of the hole. that in applications where rate gyro systems might face
No issues were encountered during rigup, rigdown or technical limitations based on well design or BHA con-
during the trip out of hole. figuration, the solid-state gyro system is an effective,
The project proved that the solid-state OmegaX sys- high-performing alternative. As the industry continues
tem experienced no observable interference from the its journey to drill better wells and improve operational
magnet and was able to deliver a valid survey run. With efficiency, solid-state gyros will see greater implementa-
a relative instrument performance test, the gyro survey tion in projects around the world.
Protection
Many network switches will feature some form of traffic
control and rate-limiting functionality. This can essen-
tially drop packets of various types when a specified traffic
level is exceeded, potentially averting the degradation of
performance for essential traffic during a critical period.
The external forces and This first line of defense can stop the overload of a con-
degrees of motion experienced troller, and the system can maintain proper function.
by a vessel and controlled by vessel thrust using a If the DP control system software detects a netstorm,
DP system are depicted in the diagram. (Source: DNV GL) then it may be possible that any switch-based protection
The PDC cutting elements possess metallic fracture toughness that is more than 100% higher than that of current PDC cutters.
(Source: Saudi Aramco)
enhances strong diamond-to-diamond bonding and than the PDC cutters currently used in the industry,
lowers the sintering temperatures and pressures as well. according to the developers. The development of an
“However, cobalt can also expand to break diamond- ultra-strong and catalyst-free PDC cutter delivers signifi-
to-diamond bonding during drilling, especially for hard cant increases in performance, durability and improved
and abrasive formations, resulting from frictional heat well economics, according to the company.
generated from cutter/rock interface. That’s why the Conventional HP/HT technology has a synthesis
PDC industry is working on leaching and other emerg- capability of pressures ranging from 5.5 GPa to 7 GPa.
ing technologies to reduce cobalt in the cutter with a Saudi Aramco’s Ultra-HP/HT technology used a
rapid pace of improvements,” Zhan said. two-stage multi-anvil apparatus with high-pressure
assembly designs for generating ultrahigh pressures
Research up to 35 GPa—seven times higher than current
Saudi Aramco has documented the successful synthesis of PDC cutters—as well as ultrahigh temperatures of
catalyst-free PDC compacts in centimeter size under ultra- up to 2,300 C.
high pressure of 16 GPa and ultrahigh temperature of Saudi Aramco said the PDC cutting elements
2,300 C using micron diamond powder as the starting mate- possess metallic fracture toughness that is more than
rial. A large sample dimension of more than 10 mm in 100% higher than that of current PDC cutters. The
diameter and up to 6 mm in thickness has been achieved, material is catalyst-free and has the highest thermal
which are sufficiently large enough and cost-effective to stability of up to 1,200 C in air, which is 600 C higher
make parts and components for not only hydrocarbon drill- than the best commercial PDC materials, according
ing but also a wide range of other industrial applications. to the company.
“Across the industry, the goal is for PDC cutters to be
able to endure long periods of time at high temperatures Moving forward
as they cut through hard, variable formations,” Zhan During Phase 1 of the research, laboratory testing of the
explained, adding that the industry’s rule of thumb is catalyst-free PDC cutting materials synthesized by the
that temperatures higher than 750 C damages the PDC Ultra-HP/HT technology proved its potential in E&P
cutter and leaching pushes that limit to about 1,200 C. and drilling operations as well as in physics, aerospace
“Although there have been many attempts to further science, geoscience and petroleum engineering.
optimize these limits, Saudi Aramco has successfully devel- Zhan concluded, “Our next step in Phase 2, which we
oped the Ultra-HP/HT technology to manufacture cata- are currently working on, is to join or bond the ultra-
lyst-free ultra-strong PDC cutting elements,” Zhan said. strong catalyst-free PDC cutting elements or layers onto
a substrate to form a full-scale PDC cutter that will be
Features attached to the drill bit body for field testing. Once the
The new method manufactures diamond-cutting materi- field testing is completed, the technology will be
als with ultrahigh wear resistance, which is 300% higher deployed in our operations.”
private operators produced 7.2 Bcf/d of HAYNESVILLE REGION, GROSS GAS PRODUCTION OUTLOOK
gross gas in the region, almost 60% of total
output. Private operators also drove nearly
all recent growth in the region.
As of the first quarter, short-term
growth is probably over for dedicated
public operators and supermajors—both
groups exhibit little to no growth on a
year-over-year basis, with a growing num-
ber of operators managing a plateau. In
turn, many private operators had a back-
loaded growth schedule in 2019, and the
group as a whole pushed its year-over-year
growth to a record high level of about 1.5
Bcf/d, a level previously achieved in 2018.
“The pace of year-over-year growth in the (Source: Rystad Energy research and analysis, ShaleWellCube)
Haynesville has decelerated since mid-
2019. However, it is clear that it may take some time
before the low gas price environment and the decline in Rystad Energy’s own base case scenario has Henry
drilling and completion activity pushes basinwide output Hub prices steadily recovering to nearly $3/MMBtu
downward,” Abramov said. in 2022.
INCLUDES:
n Well Production & Completion Data
n Visual Mapping
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Energy DataLink is the industry standard for
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HartEnergy.com | E&P | June 2020 59
tech
TRENDS
Remote training for offshore vessels based surveillance systems, together with its predictive data
Kongsberg Maritime offers virtual, targeted training analytics and Internet of Things ecosystem, to manage and
through digital platforms including remote training, assess client operations. The enhanced level of services pro-
e-learning and the Kongsberg Competence Assessment vided by this system during drilling operations will vastly
Tool (K-CAT). Video conferencing and virtual machines benefit those with a stake in identifying and managing
allow in-depth, hands-on training to be safely delivered, risks and any asset deterioration.
maintaining skills and continuing development. The
virtual training environment enables remote students to Risk management tool to help
learn using their own vessel’s software, assisted live by a businesses resume operations smoothly
qualified instructor. Remote training delivered through ABS Consulting has released the Restart Risk Model to
established virtual classrooms and online training tools help commercial and public organizations resume oper-
will ensure that vessel crews can fully benefit from Kongs- ations safely as restrictions around the COVID-19 pan-
berg’s expertise from the convenience and safety of their demic have started easing. The Restart Risk Model builds
homes or offices. E-learning delivers an interactive experi- on guidance from the Centers for Disease Control and
ence without the instructor, allowing the student to com- Prevention and OSHA, offering a way for organizations
plete the course at their convenience. E-learning typically to systematically evaluate the risk of disease transmission
comprises a combination of theoretical lessons, practical to their sites, operations and work areas. This risk-based
tasks and summative tests after every topic, qualifying the framework will help organizations develop a plan to
student to sign up for a final online assessment. Aiming restart operations with enhanced working practices that
to help ship owners safeguard and verify the development address the “new normal” business environment after the
and retention of their crews’ skills, K-CAT offers compe- pandemic. The Restart Risk Model leverages industry-
tence assessments for key damage prevention personnel, specific templates developed by ABS Consulting to assess
with additional offerings expected soon. an organization’s site and develop a custom risk profile.
Through a systematic process, the company will work
with a client to document current risk controls for worker
safety and make recommended mitigation controls for
back-to-work scenarios and the opening and closing of
sites. The Restart Risk Model also includes an integrated
dashboard that provides a visualization of risk levels at
work sites. As conditions and guidance evolve, organiza-
tions can easily see where they need to adapt.
Wildcatters Fund
the political action committee
of independents
I N D E P E N D E N T P E T R O L E U M A S S O C I AT I O N O F A M E R I C A | W W W. I P A A . O R G
tech
TRENDS
7
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PEOPLE Golar LNG Partners L.P. has which is anticipated to take place
appointed Karl Fredrik Staubo within the next 12 months. In the
interim CEO and Golar LNG meantime, Tyler has indicated his
Joe B. Foster, founder Ltd. has appointed Callum Mitch- commitment to continue serving as
and former chairman, ell-Thomson CFO, both succeeding chairman of the board.
president and CEO of Graham Robjohns, who has stepped
Newfield Exploration down from those positions. Daniel Energy Partners has
Co., has passed away. According to appointed 10 executive advisers:
an internal email sent to employ- ConocoPhillips has announced the Don Gawick, Joe Freeman, Mark
ees by Ovintiv Inc., Foster, 86, retirement of Don E. Wallette, Jr. as Hood, Larry Kerr, Chris Menefee,
died May 9 at his home in Hous- executive vice president and CFO, Royce Mitchell, Brian Smith, Garrett
ton from an apparent heart attack. effective Aug. 31. He held a 39-year Smith, Bill Stanger and Denzil West.
His death was not COVID-19- career with the company.
related. When he started Newfield Cub Energy Inc., a Ukraine-focused
in 1989, Foster had a team of 26 Nigel Filer has joined energy company, has appointed
employees and $9 million of equi- tech startup Xergy as an Patrick McGrath to the board. Dr.
ty capital. By the time he retired investor and COO. Timothy Marchant has resigned
from Newfield in 2000, he had from the board.
built the company into a thriving
multibillion-dollar business. Imperial Oil Ltd. has named S.P.
COMPANIES
(Simon) Younger senior vice presi-
Eni’s board of directors has dent of upstream, effective June 1. CUI Global Inc. has changed its
appointed Claudio Descalzi CEO He will succeed J.R. (John) Whelan, name to Orbital Energy Group,
and general manager. who has been appointed vice presi- Inc. The new name reflects the
dent of Global Heavy Oil at Exxon company’s strategic repositioning to
Mitch Little (left) has retired as Mobil Upstream Oil and Gas. become a diversified energy infra-
executive vice president structure services company.
of operations with Mar- SeekOps has named Jim
athon Oil Corp. and will Rutherford vice president Murphy Oil Corp. is set to relocate
transition to executive vice of engineering. its headquarters to Houston, shutter-
president and adviser to the CEO ing its legacy headquarters office in
with oversight for Equatorial Guinea El Dorado, Ark., where the compa-
operations. Additionally, Mike The Oil and Gas Authority has ny was formed by its namesake in
Henderson has been promoted to appointed Iain Lanaghan and 1944. The E&P company also plans
senior vice president of operations Sarah Deasley nonexecutive direc- to close its longstanding office in
and will oversee Marathon Oil’s U.S. tors. Deasley will assume responsi- Calgary, Alberta. Both offices are set
Resource Play businesses. bilities in October, following the to close by early third quarter.
retirement of Robert Armour at the
Stephen M. Johnson (left), CEO of end of September. Peloton has acquired ExproSoft, a
WaterBridge supplier of well integrity, reliability
Resources LLC, will transi- Xodus Group has and data modeling software and
tion into the newly created appointed Nigel Under- consulting services.
role of vice chairman. He wood to manage the com-
will be succeeded by CFO Steven pany’s London subsea and MAKEEN Energy’s daughter
Jones and COO Jason Long, who pipelines division. company, Kosan Crisplant, has
have been named co-CEOs. Both signed an agreement to acquire
Jones and Long will retain their Ian Tyler, Cairn Energy’s chairman, Gas Equipment Company Inc.
roles as CFO and COO, respectively. has announced his intention to
retire from the board once a succes- The Petroleum Equipment &
ARROW Exploration Corp. has sor has been appointed. The board Services Association welcomed
appointed Joe McFarlane CFO, will begin a comprehensive process Wellbore Integrity Solutions as its
succeeding John Newman. to identify and appoint a successor, new member company.
The Interstate Oil and Gas Compact technologies and software that mea-
Commission, a consortium of 31 states, sure and control the flow of material
has asked the Trump administration for in a manufacturing process.
Publisher stimulus funds to hire laid-off energy
DARRIN WEST workers to plug abandoned wells, a pro- KLX Energy Services Holdings Inc.
Tel: 713-260-6449 posal aimed at fending off unemploy- and Quintana Energy Services Inc.
dwest@hartenergy.com
ment while tackling a growing environ- announced that they have entered into
mental problem. a definitive agreement whereby the
Global Sales Manager
HENRY TINNE
companies will combine in an all-
Tel: 713-260-6478 Emerson will invest more than $100 stock merger transaction. The merger
htinne@hartenergy.com million in Boulder to significantly is expected to close in the second
expand its manufacturing space half of 2020.
Executive Director of Conference Marketing and launch a new innovation center
BILL MILLER focused on research, new product Flotek Industries Inc. has acquired
Tel: 713-260-1067
development and industry training 100% ownership of JP3 Measurement
bmiller@hartenergy.com
for its advanced flow measurement LLC, a privately held data and
Executive Director—Digital Media
products. The nearly 180,000-sq-ft analytics technology company, in
DANNY FOSTER expansion includes a new, 85,000-sq-ft a cash-and-stock transaction. The
Tel: 713-260-6437 laboratory and manufacturing facility transaction is valued at approximately
dfoster@hartenergy.com to design and develop products, $34.4 million.
HartEnergy.com| |E&P
HartEnergy.com E&P
| June
| June
20202020 67
last
WORD
A standards approach to
specifying fluid system components
Certified materials ensure repeatability and reliability.
ity. A design that has performed dependably over time Following NORSOK standards
will likely do the same in a new system in the same envi- Similar to NACE standards, the Norwegian petroleum
ronment and conditions. Yet, owners also can customize industry’s NORSOK standards outline material and
systems and still achieve optimal performance. supply chain requirements to ensure component qual-
Standardization is a requirement for fluid system ity. Such provisions include material selection guide-
component manufacturers. Suppliers must adhere to lines for specific applications and strict manufacturing
industry standards to ensure compliance with those protocols. For example, the NORSOK M-650 standard
guidelines. Of course, component repeatability and reli- verifies that a manufacturer has sufficient experience
ability typically follow. with relevant material grades as well as the necessary
Consider the American National Standards Institute facilities and equipment to manufacture those materi-
(ANSI)/NACE MR0175/ International Organization als into components.
for Standardization (ISO)15156 “Petroleum,
Petrochemical and Natural Gas Industries—Materials Going above and beyond
for Use in H2S-containing Environments in Oil and Gas The industry relies on material standards to provide
Production” standard. a level of confidence that a component will perform
This consensus standard is a collaboration of three as stated. However, a standard represents a minimum
major standards organizations: ANSI, NACE International requirement. A part designed to meet the minimum
and ISO. These parties have agreed on the minimum should perform reliably. Yet, a part that exceeds that
requirements for selecting and qualifying various alloys minimum should perform even better.
to enhance component corrosion resistance. When specifying components made from 316
When manufacturers follow the standard’s metal- stainless steel, ASTM A479/A479M-18 “Standard
lurgical requirements, components are more likely to Specification for Stainless Steel Bars and Shapes for
resist corrosion and perform reliably. Similar results are Use in Boilers and Other Pressure Vessels” requires
expected when manufacturers produce components the material to have at least 10% nickel and 16% chro-
based on guidelines from other standards organizations mium content to mitigate corrosion. Field-testing has
such as ASTM International and NORSOK. shown that 316 stainless steel tubing with elevated ele-
mental concentrations closer to 12% nickel and 17%
Adhering to the standard chromium resists corrosion far better than tubing man-
The ANSI/NACE MR0175/ISO 15156 standard helps ufactured to minimum standards. Selecting a better 316
ensure materials used in sour gas environments can stainless steel grade should enhance system reliability.
reliably mitigate stress corrosion cracking and sulfide To realize the best outcomes, asset owners must
stress cracking. Sulfide stress cracking can develop when ensure their fluid system component suppliers meet
H2S is present. To produce fluid system components industry standards and exceed them, when possible.
that comply with the standard, manufacturers must use Practices also should include assurances covering com-
qualified raw materials, test those materials and follow ponent repeatability and reliability.
specific manufacturing methods. Like the very processes outlined in component stan-
When producing components that are compliant with dards, these qualifications should be a standard part of
this standard, manufacturers must follow the manufac- an owner’s vetting process.