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Thursday, August 4, 2011

August 2011 Digital Issue of Offshore Engineer



 

Offshore Engineer

click to go to Offshore EngineerYour August 2011 Digital Issue of OE (Offshore Engineer)  is available for viewing or download!

Click here, or on the magazine cover to access your issue. Or, copy and paste the link below directly into your browser.

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Inside This Month's Issue:

Latin beats:
The focus on LatAm deepwater naturally gravitates to the headline-grabbing pre-salt region. But, there are other areas in the region's deep waters worth noting.

Decom prizes and pitfalls:
Around 460 installations, over 10,000km of pipeline and 10,000 wells are set to be decommissioned in the North Sea over the next three decades. Given the size of the prize, why are operators, contractors and politicians still somewhat reticent to tackle the liabilities with a singular focus?

Rising ambitions:
Wood Group Kenny, Airborne and DeepFlex discuss the latest challenges and offerings in the realm of composite production risers.

GoM's latest catch:
Baker Hughes' latest fracturing and stimulation vessel, the Blue Tarpon, is designed for operations in the Lower Tertiary play of the Gulf of Mexico.

Downhole duty:
Serial downhole innovator Red Spider initially set out to focus its Remote Open Close Technology on well intervention work, but operator demand for further cost-effective and safe solutions has led to additional applications tailored to the particular challenges of completion work.

Rhetoric and reality:
Explore the rhetoric and realities of renewable energy.

Talking the torque:
The accurate application of torque in both installation and maintenance of pipeline and wellhead assets is vital to ensuring equipment is fully operational in remote and hostile subsea locations.


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Tuesday, August 2, 2011

UK O&G Production Declines Continue

UK oil and natural gas production declined in 2010, mirroring the larger trend seen over the past decade, the UK Department of Energy and Climate Change (DECC) reports.

In the Digest of United Kingdom Energy Statistics (DUKES) 2011 report, DECC reports that primary energy production in 2010 totaled 158.1 million tones of oil equivalent, down 5.3 percent from 2009. Production has fallen each year since 1999, and is down 46.9 percent on 1999 levels, an average rate of decline of 5.6 percent.

Crude oil production, which includes natural gas liquids (NGLs), in 2010 was 63 million tones, 7.7 percent lower than in 2009, and now accounts for 44 percent of primary energy production.

DECC notes that net imports of crude oil and NGLs rose to meet demand with oil exports decreasing by six percent. Net imports grew to just under 9 million tones or around 13 percent of the UK's demand.

The decrease in oil production over the past 10 years shows a sharp rate of decline between 2002 and 2006, with a shallower profile in later years. The main factor behind this flattening effect was the Buzzard field development, which compensated for the sharper falls seen in existing fields. On average, crude oil production has been decreasing by around seven percent a year.

Gross UK gas production has been decreasing since 2000, and in 2010 was down 4.3 percent from 2009. Gross gas production has fallen by 47.3 percent since its peak in 2000. Gas imports in 2010 were almost a third higher than in 2009, mainly because of lower production and higher demand.

Liquefied natural gas (LNG) is increasingly important as a source of imports to supplement existing ones. In September 2010, imports from shipped LNG surpassed the gas imported via pipeline from Norway for the first time; in 2010, LNG imports accounted for 35 percent of the UK's total commercial imports.

UK primary energy consumption in 2010 grew by 3.2 percent, largely driven by the colder weather in 2010. Total oil consumption in the UK fell marginally in 2010; the majority of final consumption of oil, around 75 percent, was consumed in the transport sector. Energy use for transport fell by one percent in 2010 compared to 2009, largely due to falls in aviation fuel resulting from disruptions due to snow and volcanoes.

Overall gas demand grew by 8.4 percent in 2010, with gas demand for electricity generation growing by 3.5 percent; gas's share of the UK's supply of electricity was 47 percent.


by  Karen Boman|
Monday, August 01, 2011

Monday, August 1, 2011

Nanotechnology Research Contributes to Fracking Proppant Development

Nanotechnology research efforts at Houston-based Rice University have contributed to the development of a fracking proppant that will optimize production from unconventional oil and gas wells.

Technological advances in hydraulic fracturing have allowed producers to access shale gas. This process requires the use of proppants such as grains of sand, ceramic or other particulates, to prevent the fractures created in hydraulic fracturing from closing when the injection is stopped. However, current proppants used in hydraulic fracturing limit the depths at which wells can drilled, and the chemicals used have raised concerns about their impact on local water supplies and the environment. "Most proppants are either hard and heavy or soft and light," said Dr. Andrew Barron, Welch chair of chemistry and professor of materials science at Rice. "Present technology is defined by the hardness/weight relationship; we need to think outside the norm."

Nanotechnology research at Rice's Richard E. Smalley Institute for Nanoscale Science and Technology contributed to the development of OxBall and OxFrac, which are light, high strength ceramic proppants developed by Oxane Materials Inc., an energy-focused nanoproducts company. OxBall is now being used commercially, while OxFrac is in final scale up development, with sales scheduled to begin this year.

To date, OxBall has been utilized in the drilling of more than eight wells; the results of these wells have been very promising. The first batch of OxBall was manufactured at a 300,000 square foot plant in Van Buren, Arkansas, with an initial production of 20 million lbs/year; this production will be scaled up to 80 million lbs/year. OxBall is being utilized to enhance production flow from the deeper Haynesville and Eagle Ford plays; it is thought that OxFrac will be primarily used on the Barnett shale play.

The company was formed through a nanotechnology venture forum through the Rice Alliance for Technology and Entrepreneurship. The alliance, started in 1999, supports entrepreneurs and early-stage technology ventures in Houston and Texas through education, collaboration and research. The group has assisted in the launch of over 225 technology companies that have raised more than $500 million in funding.

The need to enhance gas production flow will be critical as the decline curve in shale wells is more dramatic than in conventional oil and gas wells, meaning that more shale wells are needed to maintain production from shale gas resources. Stronger proppants are needed to boost production and allow deeper wells to be drilled.

Environmental concerns over hydraulic fracturing, which has led to new legislation in Texas and other states requiring producers to disclose fracturing chemicals, has created the need for ceramic processing of proppants that is more benign.

Barron said the ideal proppant is mono-dispersed, which allows for enhanced flow and packing; light for enhanced transportation; and round-shaped to enhance flow. The material in proppants needs to have strength and depth will allowing proppants to get into the rock.

While fracking sand is cheap, the variance in the shape of the particles can prevent flowback from coming through evenly. Barron used the example of a bucket filled with ping pong balls, since the balls are all the same shape, the water flows evenly. "If the particles are different sizes, as often is the case with fracking sands, the dispersant slows. Developing proppant with particles consistently the same shape allows for better flow."

The application of nanotechnology within the oil and gas industry is part of the institute's mission to solve humanity's most pressing problems through the application of nanotechnology. During 2002 and 2003, Professor Richard E. Smalley developed a list of the Top Ten Problems Facing Humanity over the Next 50 Years. Five of these problems have been identified as Grand Challenges, including energy, water, environment, disease and education. The faculty researchers of the Smalley Institute use a variety of nanotechnology approaches to significantly impact these Grand Challenges.


by  Karen Boman|
Friday, July 29, 2011

OE@OE Goes Live!



Click here to view in your browser.

Offshore Engineer and Offshore Europe launch new web portal
With 6 weeks to go before the opening of SPE Offshore Europe a new website designed and powered by the organiser and their Media Partner goes live.

OE signs exclusive deal with UKTI
Offshore Engineer (OE) is delighted to have signed an exclusive deal with UKTI to be their Official Media partner at Offshore Europe in Aberdeen this September.

Home hunt on to help meet Offshore Europe accommodation demand
The ongoing growth of the SPE Offshore Europe exhibition and conference means organisers are expecting this year's event to draw even more visitors to Aberdeen and the surrounding area.

Dive into the Deep Water Zone at SPE Offshore Europe
Global capital expenditure on deepwater projects is forecast to total US $167 billion between now and 2015, confirming its status as a major platform in the growth strategies of the world's oil and gas players

Shell buys Abadi interest
Inpex Maslea and Shell Upstream Overseas Services signed
an agreement transferring 30% interest in the Abadi project in
the Maslea block.

Petrobras to up E&P spending
Petrobras on 22 July 2011 approved investments of $224.7 billion
in its 2011-2015 business plan, reflecting an increase from
53% to 57% in exploration and production activity.

Hess, Petroceltic pair up for Iraq E&P
Hess Corporation and Petroceltic International signed production sharing contracts with Kurdistan Regional Government of Iraq for the Dinarta and Shakrok exploration blocks in the central north of the Kurdistan Region of Iraq.


LDD wins renewables contract
LDD won a multimillion-pound contract from RWE Innogy to provide drilling services to install 160 wind turbine foundations at the Gwynt y Môr farm offshore North Wales.


BZ-28-2S fields resume production
The CNOOC-operated BoZhong 28-2 South (BZ 28-2S) oilfields restarted production after a brief shut-down.






Latest issue of TechConnect from Baker Hughes



Baker Hughes TechConnect, Volume 9, Number 2

TROUBLE VIEWING THIS EMAIL? VIEW IT AS A WEB PAGE

Baker Hughes TechConnect Volume 9, Number 2
Latin America
Liner Drilling System in Lost-circulation Zone Saves Offshore Well, $7.5 Million in NPT
TORXS expandable liner hanger packer systemAn operator was unable to drill through a complex micro-fractured formation because tools and drilling fluids, including oil-based mud (OBM), were being lost in the hole. After three sidetrack attempts through the troublesome formation, the operator was considering plugging and abandoning the offshore well.

Baker Hughes suggested a liner drilling solution using a TORXS™ expandable liner hanger packer system with an EZCase™ casing bit system to drill the difficult section with complete lost circulation. The operator saved $7.5 million in combined mud and nonproductive time losses by replacing standard drilling procedures with the liner drilling system.
Read more arrow

Middle East
High Dogleg AutoTrak eXpress™ Service Accurately Places Wellbore in Complex Hook-shaped Sidetrack
A Middle East operator was faced with drilling a complex hook-shaped sidetrack profile involving a drop, turn and build. Historically, all jobs in this field were done with steerable motor assemblies, but the operator asked to have a rotary steerable system for this challenging well profile to ensure good hole quality and flawless execution of drilling, casing and cementing operations.

"The formation started with interbedded hard-to-soft intervals, which was really a challenge in mitigating vibrations, especially lateral vibrations," says Wael Al-Kholy, drilling applications engineer for Baker Hughes in the UAE. "After that, the Nahr Umar shale—a well-known formation characterized by shale instability—was encountered, making it difficult to achieve doglegs.
Read more arrow

US Land
StimPlus Services Solve Bacteria-related Problems in Shale Gas Well, Save $735,000 in H2S Scavenging Applications
Because of low hydraulic permeability, the Fayetteville shale formation requires operators to use large volume hydraulic and sand fracturing technologies (slick water fracs) to enhance gas production. As a result of the required water volume, the water used for preparation of frac fluids is often obtained from multiple sources.

In one case, the frac water sources were heavily contaminated with sulfate-reducing bacteria (SRB) and acid-producing bacteria (APB). Some water sources exhibited odor problems and blackwater (foul or sewage water).
Read more arrow

Gulf of Mexico
TERRA-MAX Service Saves 3.5 Days Rig Time on GOM Shelf Wells
Shale instability, hole enlargement and stuck production liners due to differential sticking were common in a mature field in the Gulf of Mexico. After trying numerous mud systems with limited success, including diesel oil mud, synthetic mud and two high performance water-based mud systems, the operator used the Baker Hughes TERRA-MAX™ customized high performance water-based mud system in two of the wells.

Both wells were drilled with minimal problems, no nonproductive time associated with drilling fluids or wellbore instability, saving the operator an average of 3.5 days of rig time—approximately half a million dollars for each well.
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Latin America
Kymera Hybrid Drill Bits Cut Drilling Costs in Half in Brazil Well
Kymera hybrid drill bit Hard and abrasive sandstone interbedded with shale and siltstone in Brazil's Potiguar basin cause variations in rock strength that can contribute to vibration while drilling. This, in turn, can cause PDC bits to fail and tungsten carbide insert (TCI) roller cone bits to suffer from low rates of penetration (ROP).

To lower the cost of drilling in this difficult formation, Baker Hughes recommended the Christensen Kymera™ hybrid drill bit, which reduced the cost per meter to drill by 50%.
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Latin America
ESP System's Record Run Life Saves $1.5 Million in Workover Costs
A Baker Hughes electrical submersible pumping system (ESP) set a new field record for ESP run life in Venezuela's Boscan field. The ESP system began operation in November 1999 in an 8,732-ft (2661-m) well and served for more than 4,200 days, surpassing the average run life in this field (862 days) by 487%.
Read more arrow
News
Baker Hughes Adds State-of-the-Art Vessel to Deepwater Fleet
Baker Hughes recently launched its state-of-the-art fracturing and stimulation vessel, the Blue Tarpon™ . The 300-ft ship, one of the world's largest stimulation vessels and the seventh vessel in the Baker Hughes fleet, is designed to provide high-rate and high-volume stimulation treatments for demanding offshore operations.
High-Performance Wellbore Cleaning Reduces Risks in High-cost Environments
Baker Hughes has introduced a wellbore clean-up and displacement system designed to improve efficiency and reduce operational risks in high-cost environments such as deepwater applications; horizontal, extended-reach and deviated wells; deep wells; and wells with high dogleg severity.
Get Connected to the Latest Baker Hughes Technical Publications
Published semiannually, the Baker Hughes Connexus magazine brings you stories that illustrate how the people in the energy industry take on difficult challenges and succeed with the right mix of technical ingenuity and fit-for-purpose products and services. To read each new issue of Connexus and other Baker Hughes publications as soon as they are published, sign up today.
Connexus
Creating Reservoir Value Through New Technologies
Learn more about a few of the latest advanced technologies Baker Hughes has introduced to help deliver better solutions for our customers' challenges.

The BJ Services SmartCare™ system is a family of superior chemistry and technology that helps to ensure underground source drinking water remains safe during the well life.

The Centrilift FlexPump™ dynamic well lift system is built around new-stage technology that mitigates thrust created by scale, gas, paraffin and debris. In addition, 25% wider vane openings enable optimized flow paths for flexible electrical submersible pump operation in challenging, low-flow regimes for greater efficiency compared with radial stages.

The X-Treme Clean™ XP wellbore cleanup and displacement system is a cost-effective cleanout solution for deep wells, deviated wells and deepwater applications offers reliable wellbore debris management.

With the Centrilift Electrospeed Advantage™ variable speed drive, your electrical submersible pumping system can be monitored automatically and continuously from remote locations, eliminating wellsite trips.

The BJ Services StimPlus™ flow assurance service combines hydraulic fracturing and production chemistry to maximize post-frac production and minimize post-frac intervention cost related to scale, organic deposition, bacteria and corrosion.

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