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US Energy Politics
Undiscovered oil potential still large off West Africa
North Sea data yield insight on fatigue life of drill pipe
Study tests accuracy of methods that estimate hydrate formation
ROV, dive data show postconstruction epifaunal health
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Jan. 8, 2007
Volume 105.2
U S E N E R G Y PO L I T I C S
US industry expects political excitement to continue in 07
18
Nick Snow
REGULAR FEATURES
Newsletter ....................................... 5
Calendar ........................................ 12
Journally Speaking ........................... 15
Editorial ........................................ 17
Area Drilling .................................. 34
Equipment/Software/Literature ......... 58
COVER
New faces in congressional leadership positions mean new opposition to energy and other initiatives by US President George W
.
Bush following Democratic victories in elections last November.
Shown with Bush here are Rep. Nancy Pelosi (D-Calif.), incoming
speaker of the House of Representatives, and Sen. Harry Reid (DNev.), new Senate majority leader.The US Energy Politics special
report, beginning on p. 18, tells whats ahead.
Services/Suppliers ........................... 59
Statistics ........................................ 60
Classifieds ...................................... 63
Advertisers Index ............................ 67
Editors Perspective/Market Journal ..... 68
The full text of Oil & Gas Journal is available through OGJ Online, Oil & Gas Journals
internet-based energy information service, at http://www.ogjonline.com. For information, send
an e-mail message to webmaster@ogjonline.com.
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CERAWEEK 2007
Dr. Alan
Greenspan
Rex W.
Tillerson
Chairman, US
Federal Reserve
(19872006)
(special invitation)
Chairman
and CEO,
Exxon Mobil
Corporation
Samuel L.
Bodman
U.S. Secretary
of Energy
John W. Rowe
Frederick W.
Smith
Chairman,
Chairman,
President & CEO
Exelon Corporation President & CEO
Federal Express
John G. Rice
Daniel Yergin
Vice Chairman
of GE,
President & CEO,
GE Infrastructure
CERA Chairman
Over 100 Speakers... plus insight from over 40 senior CERA experts.
CERA
An IHS Company
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GENERAL INTEREST
Editorial: The role of business
Special Report: US industry expects political excitement to continue in 07
17
18
Nick Snow
22
23
24
Nick Snow
24
25
Angel White
26
27
28
29
29
30
London
35
41
Rich Dennis
Tel +44.(0)773.498.6359
International Editor Uchenna Izundu, uchennai@pennwell.com
Washington
Tel 703.963.7707
Washington Correspondent Nick Snow, nsnow@cox.net
PROCESSING
Study tests accuracy of methods that estimate hydrate formation
44
Tel 310.595.5657
Senior Correspondent Eric Watkins, hippalus@yahoo.com
OGJ News
TR A N S P O R T A T I O N
ENVIRONMENTAL MITIGATION2: ROV, diver-collected data show
postconstruction epifaunal health
Los Angeles
52
Jon A. Schmidt, Steven W. Ellsworth, R. Allen Brooks, Darren F. Bishop, Michael C. Aubele, H. Ed Watkins
Copyright 2007 by PennWell Corporation (Registered in U.S. Patent & Trademark Ofce). All rights reserved. Oil & Gas Journal or any part thereof
may not be reproduced, stored in a retrieval system, or transcribed in any form or by any means, electronic or mechanical, including photocopying and
recording, without the prior written permission of the Editor. Permission, however, is granted for employees of corporations licensed under the Annual
Authorization Service offered by the Copyright Clearance Center Inc. (CCC), 222 Rosewood Drive, Danvers, Mass. 01923, or by calling CCCs Customer
Relations Department at 978-750-8400 prior to copying. Requests for bulk orders should be addressed to the Editor. Oil & Gas Journal (ISSN 00301388) is published 47 times per year by PennWell Corporation, 1421 S. Sheridan Rd., Tulsa, Okla., Box 1260, 74101. Periodicals postage paid at Tulsa,
Okla., and at additional mailing ofces. Oil & Gas Journal and OGJ are registered trademarks of PennWell Corporation. POSTMASTER: send address
changes, letters about subscription service, or subscription orders to P.O. Box 3497, Northbrook, IL 60065, or telephone (800) 633-1656. Change of
address notices should be sent promptly with old as well as new address and with ZIP code or postal zone. Allow 30 days for change of address. Oil &
Gas Journal is available for electronic retrieval on Oil & Gas Journal Online (www.ogjonline.com) or the NEXIS Service, Box 933, Dayton, Ohio 45401,
(937) 865-6800. SUBSCRIPTION RATES in the US: 1 yr. $49, 2 yr. $75, 3 yr. $99; Latin America and Canada: 1 yr. $54, 2 yr. $90, 3 yr. $125; Russia and
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$79 worldwide. These rates apply only to individuals holding responsible positions in the petroleum industry. Single copies are $10 each except for
100th Anniversary issue which is $20. Publisher reserves the right to refuse non-qualied subscriptions. Oil & Gas Journal is available on the Internet at
http://www.ogjonline.com. (Vol. 105, No. 2) Printed in the US. GST No. 126813153. Publications Mail Agreement Number 602914. Return Undeliverable
Canadian Addresses to: P.O. Box 1632, Windsor, ON N9A 7C9.
Subscriber Service
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Subsea Tieback
SUBSEA TIEBACK
Forum & Exhibition
w w w. s u b s e a t i e b a c k f o r u m . c o m
_________________________________
The 7th annual Subsea Tieback Forum & Exhibition (SSTB) is scheduled for
February 27 March 1, 2007 in Galveston, Texas at the Moody Gardens Hotel &
Conference Center. SSTB has become the premier event for one of the fastest growing
field development segments. Over 1,500 people and 150 exhibitors are expected at this
years conference.
If you are involved in subsea tieback activity, you cannot afford to miss this exciting
conference. This years theme Subsea Tiebacks Real Issues, Real Solutions focuses
upon the expanding role of subsea tiebacks expands on last years momentum assessing
where this subsea industry is at present and where it is headed for the future.
For more information about sponsoring, exhibiting or attending this highly focused
conference visit our website at www.subseatiebackforum.com
Flagship Media Sponsors:
Hosted by:
Supporting
Organization:
Sponsors:
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Jan. 8, 2007
International news for oil and gas professionals
For up-to-the-minute news, visit www.ogjonline.com
General
Interest
Q u i c k Ta k e s
Exploration
&
Development
Q u i c k Ta k e s
1,806 m of water, tested 3,686 b/d of oil from a Miocene reserTotal E&P Angola, in participation with state-owned Sonangol voir. The well is located 15 km southwest of the Mostarda-1 disEP, has made a new oil discovery with its Salsa-1 well, the sixth ex- covery, which tested 5,347 b/d of 30 gravity oil from one interval
ploration well drilled on Block 32 in ultradeep water off Angola.
(OGJ, Feb. 20, 2006, Newsletter).
Salsa-1, drilled in the southeastern portion of the block in
Complementary technical studies are under way to evaluate the
Oil & Gas Journal
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4 wk.
average
4 wk. avg.
year ago1
Change,
%
YTD
average1
YTD avg.
year ago1
Change,
%
9,852
4,266
1,638
536
5,195
21,488
9,257
4,279
1,727
1,015
5,031
21,309
6.4
0.3
5.1
47
.2
3.3
0.8
9,834
4,165
1,607
709
4,971
21,287
9,157
4,118
1,679
920
4,925
20,799
7
.4
1.1
4.3
22.9
0.9
2.3
5,306
2,306
9,624
3,067
1,140
21,443
4,953
1,494
10,040
3,612
1,130
21,228
7
.1
54.4
4.1
15.1
0.9
1.0
5,141
2,243
10,196
3,406
1,096
22,082
5,179
1,717
10,074
3,588
1,162
21,720
0.7
30.6
1.2
5.1
5.6
1.7
15,177
15,493
89.4
58.00
15,043
15,249
89.0
0.9
1.6
15,151
15,570
90.4
15,220
15,479
90.4
0.5
0.6
57.00
56.00
55.00
Motor gasoline
Distillate
Jet fuel
Residual
Other products
TOTAL DEMAND
54.00
53.00
De c . 2 7
De c . 2 8
De c . 2 9
Jan. 1 1
Jan. 2 1
$/bbl
Crude production
NGL production
Crude imports
Product imports
Other supply2
TOTAL SUPPLY
60.00
59.00
58.00
57.00
56.00
55.00
54.00
53.00
De c .
271
De c .
281
De c .
291
Jan.
11
Jan.
21
Latest
week
Previous
week1
Change
319,341
201,229
137
,797
38,013
44,996
321,473
199,821
135,212
38,359
44,354
2,132
1,408
2,585
346
642
323,482
202,504
129,487
41,336
37
,900
4,141
1,275
8,310
3,323
7
,096
1.3
0.6
6.4
8.0
18.7
62.99
7
.87
Same week
year ago1 Change
Change,
%
62.08
7
.50
0.91
0.63
58.04
13.83
4.95
6.96
8.5
50.3
6.00
5.80
Crude oil
Motor gasoline
Distillate
Jet fuel
Residual
5.60
5.40
5.20
5.00
4.80
De c . 2 7
De c . 2 8
De c . 2 9
Jan. 1 1
Jan. 2 1
Futures prices3
Light sweet crude, $/bbl
Natural gas, $/MMbtu
163.00
Based on revised figures. 2Includes other hydrocarbons and alcohol, refinery processing gain, and unaccounted for crude oil.
165.00
161.00
159.00
157.00
155.00
153.00
151.00
De c . 2 7
De c . 2 8
De c . 2 9
Jan. 1 1
Jan. 2 1
BAKER HUGHES INTERNATIONAL RIG COUNT: TOTAL WORLD / TOTAL ONSHORE / TOTAL OFFSHORE
3,300
3,077
3,000
2,726
2,700
2,400
109.00
2,100
105.00
1,800
101.00
1,500
97.00
1,200
93.00
900
89.00
600
85.00
300
Nov. 05
81.00
De c . 2 7
De c . 2 8
De c . 2 9
Jan. 1 1
Jan. 2 1
Jan. 06
Feb. 06
Mar. 06
Apr. 06
May. 06
June 06
July 06
Aug. 06
Sept. 06
Oct. 06
Nov. 06
1,800
/gal
1,600
161.00
1,710
1,471
1,400
157.00
1,200
153.00
149.00
1,000
145.00
800
141.00
600
137.00
400
De c . 2 7
1 Not
429
364
133.00
De c . 2 8
De c . 2 9
Jan. 1 1
Jan. 2 1
200
10/21/05
10/14/05
available.
2 Nonoxygenated
352
Dec. 05
regular unleaded.
11/04/05
10/28/05
11/18/05
11/11/05
12/2/05
11/25/05
12/16/05
12/9/05
12/30/05 10/20/06
12/23/05 10/13/06
11/03/06
10/27/06
11/17/06
11/10/06
12/1/06
11/24/06
12/15/06
12/8/06
12/29/06
12/22/06
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Drilling
&
Production
Statoil ASA has found dry gas within three intervals drilled in its
Cocuina-2X exploration well on Block 4 of Plataforma Deltana, off
eastern Venezuela (OGJ, Sept. 4, 2006, Newsletter).
The well, 240 km from the Orinoco Delta, was drilled to 3,406
m TD. The true potential of Block 4 cannot be confirmed until the
whole exploration program has been completed, Statoil said.
Transocean Inc.s Sovereign Explorer semisubmersible will now
proceed to the next well location, Ballena-1X, to drill in 350 m of
water. No well has been drilled in deeper water off Venezuela to
date, according to Statoil.
TheVenezuelan government awarded the Plataforma Deltana Block
4 license to Statoil in 2003. Statoil is operator with a 51% share, and
Total SA holds 49%. PDVSA Gas has the option to participate with up
to 35% once a commercial discovery has been declared.
Statoil is a partner, together with PDVSA and Total, in the extraheavy Sincor oil project in the Orinoco Belt.
Q u i c k Ta k e s
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Processing
Aramco to cut ethane in petrochemical feeds
Saudi Aramco expects to reduce the proportion of ethane in petrochemical feedstock to 60% by the end of the decade, down from
100% during the 1980s, said Khalid A. Al-Falih, the companys industrial relations senior vice-president.
Speaking during a Gulf Petrochemical and Chemical Association Forum in Dubai late last month, al-Falih discussed evolving
regional feedstock parameters.
Al-Falih said associated gas has an ethane content of 18-20%
while nonassociated gas has an ethane content of 4-6%. Saudi
Aramcos incremental gas production capacity is not expected to
yield significant quantities of associated gas.
Industry has developed effective feedstock with lower ethane
Q u i c k Ta k e s
content by using propane and butane. Ethane accounted for 100%
of regional petrochemical feedstock from the 1980s through 1990,
he said. In 1992, Arabian Petrochemical Co. mixed propane with
ethane as a cracker feedstock.
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Tr a n s p o r t a t i o n
Break shuts Venezuelas ICO gas line
Venezuelas Interconnection Centro Occidente natural gas pipeline, which experienced a rupture at a joint on Dec. 6, 2006, is
under repair and likely to remain shut-in until early February.
The 36-in, 70-km line carries gas from the East Falcon fields to
the Paraguana Peninsula refining complex.
The PetroCumarebo mixed company began shipping 10 MMcfd
of gas into the ICO pipeline last year from Cumarebo field (OGJ
Online, Aug. 8, 2006).
Cumarebo field is operated by the PetroCumarebo mixed
company, a joint venture of Petroleos de Venezuela SA (60%) and
Vinccler Oil & Gas CA, a subsidiary of PetroFalcon Corp., Carpinteria, Calif. (40%).
Q u i c k Ta k e s
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2007
Underwater Intervention
Conference, New Orleans,
(281) 893-8539, (281)
893-5118 (fax), website:
www.underwaterintervention.
com. Jan. 30-Feb.1.
__
JANUARY
FEBRUARY
_____________
12
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International Petrochemicals
& Gas Technology Conference
& Exhibition, London, +44
(0) 20 7357 8394, e-mail:
Conference@EuroPetro.com,
website: www.europetro.com.
12-13.
____________
A Marginal Wells Development Guide for E&P, Service Companies and Investors
FEBRUARY 1, 2007
HOUSTON, TEXAS
Qualified Bidders Only Advance Registration Required
PHONE (281) 873-4600
FAX (281) 873-0055
K.R. OLIVE, JR., PRESIDENT
TX License No. 10777
13
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The webcast will be based on the annual Forecast and Review special report appearing
this year in the January 15 issue of Oil & Gas Journal. The Forecast and Review projects
oil and gas demand worldwide and in the US for the new year. The US forecast
analyzes demand by petroleum product (such as gasoline, diesel, jet fuel, and so forth).
As the name implies, the report compares the forecast with estimates for actual
numbers for the prior year. In addition to oil and gas markets, the Forecast and Review
includes a forecast for US and Canadian drilling activity.
The format for the webcast will include predictions made at this time last year for 2006.
Bob Tippee, Editor, will make the presentation. If schedules permit, Marilyn Radler,
Senior Editor-Economics, and G. Alan Petzet, Chief Editor-Exploration, will be on hand
for questions. Marilyn assembles the numbers and writes copy for the supply-demand
portions of the Forecast and Review. Alan does the drilling forecast.
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J o u
Guntis Moritis
Production Editor
Field examples continue to show the
value of carbon dioxide injection for
enhancing oil production.
The Permian basin of West Texas and
Eastern New Mexico remains the most
active area, but this technology has
potential for other regions of the world,
as noted at last Decembers annual CO2
flooding conference in Midland, Tex.
The conference was the 12th held
and with about 350 attending, the largest in attendance to date. Over the years,
attendance at the conference has fluctuated, largely reflecting oil price swings.
In the last 4 years, the CO2 conference has added a carbon management
workshop, with the last one held in
Houston prior to the Midland venue.
The heightened worldwide interest
in managing carbon emissions with
geologic storage of CO2 may provide
the industry new incentives for converting this waste product into a valuable
asset for recovering additional oil from
mature reservoirs.
The Society of Petroleum EngineersPermian Basin Section and University of
Texas of the Permian Basin were two of
the conference sponsors.
Flood examples
Although CO2 EOR is a proven technology, the process requires extensive
engineering and usually involves a
southern part of the unit and in nonperforming patterns in the central area
in 1992.
Revising the approved CO2 slug
sizes in the eastern area to 60% from
40% hydrocarbon pore volume in
1994, to 80% in 1996, and to 100% in
2001. The increases in slug size allow
CO2 to enter more portions of the moderate and low-permeability layers.
Changing from an inverted ninespot pattern in the eastern area to a
semi-infill line drive in 1996.
Developing the transition zone in
the eastern area in 1996.
Continuing to optimize the chase
water volumes and WAGs based on pattern maturity.
Other areas
Outside the Permian basin some other CO2 EOR activity includes Denbury
Resources Inc. expanding CO2 EOR to
new fields in Mississippi, Anadarko Petroleum Corp. continuing phased development of CO2 injection in Salt Creek
field in Wyoming, and Apache Canada
Ltd. evaluating pilot projects that inject
acid gas in previously waterflooded pinnacle reefs in Alberta. A project is also
slated for Croatia.
The North Sea is another area with
potential projects. BP PLC has proposed
a CO2 EOR project in Miller field, off
UK, and Shell and Statoil ASA have announced a feasibility study on Draugen
field, off Norway. Both these North Sea
projects would use CO2 from newly
built onshore power plants.
New CO2 sources are vital for expanding CO2 EOR. Even the expansion
of projects in the Permian basin is limited by constraints in CO2 supply.
15
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Plan today to sponsor, exhibit and attend this vital industry conference and exhibition.
For more information go to our website at www.multiphasepumping.com
Flagship Media Sponsors:
Sponsor:
Hosted by:
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GE
N E R A L
N T E R E S T
The US oil and gas industry
is entering 2007 with much the
same fervor as a year ago, according to industry and trade
association executives.
Although 2006 was a year
when energy played a prominent role in the nations
politics, industry leaders
believe this years political
Washington Correspondent
just because Democrats now
California said
DPC Pres.
control both the House of
the new majorWilliam F.
Representatives and Senate for
ity would make
Whitsitt
the first time in 12 years, they
significant changes,
said.
might not be as enThe Democrats have been in
compassing as origicharge before. Bipartisan participation
nally thought. But he and
still is needed to adopt major proposals,
other industry association
said William F. Whitsitt, president of the officials also said they lacked specific
Domestic Petroleum Council. I believe information about the Democrats plans
when they spoke with OGJ in mid to
late-December. Thats only the beginSPECIAL
ning of the 110th Congress. I expect it
to look hard at our industry, Drevna
said.
The Democrats have kept their
US Energy Politics
plans secret, said Brian T. Petty, senior
vice-president for government affairs at
the International Association of Drilling
Contractors. They could hold investigatory hearings, but its still not certain
what theyll do beyond that.
Report
Hard-pressed
Petty also has not seen specifics for
the Democrats first 100 hr, but he expected an effort to repeal geologic and
that in the end, a lot of Democrats and
Republicans are concerned about major geophysical expense amortization on
successful wells and other provisions in
energy issues.
the 2005 Energy Policy Act (EPA) favorSeveral Washington, DC-based trade
association officials began meeting with able to oil and gas. Even our Blue Dog
federal lawmakers and their staffs soon friends will be hard-pressed not to vote
for a gigantic bill that plants the flag for
after Novembers election. Our mis18
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Its somewhat of a
made a long-term economic impact,
Association. But
IPAA Pres.
shifting target, Fuller
said Terry D. Boss, INGAA senior viceour issues traditionBarry Russell
said, adding that the 110th
president for regulatory affairs.
ally have been more
Congress also could examine
Yet not doing anything and sticking
regional than partisan.
domestic producers inclusion
with established technologies also poses
Association executives
Oil & Gas Journal / Jan. 8, 2007
19
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development.
Producers also are concerned that
The administration will have many
not enough attention is being paid to
matters competing for its attention,
finding supplies to satisfy additional
Fuller said. It
demand. Were on
SPECIAL
also will be
borrowed time,
dealing with
said Whitsitt. We
a Democratic
havent seen the
Congress that
necessary long-term
US Energy Politics
will probably
supply response.
be more agRegardless of whos
Special interests
gressive in its
in charge, ConDrevna expects a lively
oversight. That,
gress can either
global climate change
by itself, will
do things
debate in the Senate,
make it less appealing to make a controthat make this situation better
where incoming
versial decision.
or impede the progress were
Environment and
Hardly any industry association ofmaking.
Public Works
Whitsitt and some other ficial in Washington expects additional
Committee
Outer Continental Shelf legislation in
association officials dont
Chairwoman
Congress during 2007, largely because
expect more radical
Barbara Boxer
the bill which passed late in 2006 was
proposals to get far this
(D-Calif.) has
year. But DPCs president very significant.
decided that
Those 8.3 million acres represent
warned that they could
two subcomsend the wrong signals to about a 20% increase from the areas
mittees will
already under lease, NOIAs Fry said.
markets and discourage
need to take
Thats pretty big, but challenges need
investment.
jurisdiction.
Were trying to point to be overcome. Its a long way from
The challenge
But the NPRA
shore, but infrastructure is fairly close.
out to the new leaderbecomes producing more ship and our friends in
official also
We look forward to the first lease sale as
said it will
soon as possible.
Congress that we take
energy, and nding
be imperative
But the 2006 bill also
the natural gas supmore ways to deliver
to keep some
established a precedent
ply situation very
it.
Report
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The EGP3A Pipeline Systems Prequalification Data Package will be available until 22 January, 2007, at the locations specified
above. Failure to obtain the Prequalification package and provide all requested data within the specified time frame will
automatically disqualify the applicant.
RESPONSES
Responses must be submitted in accordance with, and demonstrate fulfillment of the requirements set forth in, the EGP3A
Pipeline Systems Prequalification Data Package. Responses to this invitation shall be sealed and submitted in accordance
with the prequalification data package instructions. Each response shall be marked CONFIDENTIAL EGP3A Pipeline
Systems Invitation for Prequalification. The full name and address of the responding company or entity must be clearly
marked on the submittals. Responses must reach the address given below not later than 14:00 hours on 12 February, 2007.
Chevron Nigeria Limited
Manager of Internal Controls
2 Chevron Drive, Lekki Peninsula
P.M.B. 12825, Lagos, Nigeria
Tel: +234.1.260.0600
Any responses received after the deadline will be disregarded. This invitation does not obligate CNL to consider a responding
company for prequalification, to include a responding company on a bid list, to award them a contract, or to inform them of
any resultant action. CNL reserves the right to either accept or reject any submittal in part or in whole, at its sole discretion.
All costs incurred as a result of this prequalification and any subsequent request for information shall be to the responding
companies accounts.
21
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TET physical propane market and manipulate the price. BP Products North
America denied both charges.
BP PLC expects the US Commodity
BP said it also is cooperating with
Futures Trading Commission staff to
CFTC in the gasoline futures trading inrecommend that a civil enforcement
quiry. The US attorney for the Northern
action be brought against the company District of Illinois also is investigating the
over alleged violations of federal comcompanys US gasoline trading, it noted.
modity exchange regulations.
Additionally, an independent review
The allegations are in connection
of the groups US trading compliance
with BP North Americas trading of
culture and its related systems has been
unleaded gasoline futures on Oct. 31,
undertaken by KPMG. The reviews
2002. CFTCs staff notified the company findings and recommendations, and
of its plans on Nov. 21, BP said in a Dec. managements response to them will
13 filing with the US Securities and
be made available to the appropriate
Exchange Commission.
regulators, BP said in an amendment
CFTC has been investigating various to its 2006 third-quarter and 9-month
aspects of BPs crude oil trading and
financial results report to the SEC.
storage activities in the US since 2003,
Supreme Court decision
the company said. It added that it has
The disclosure came 2 days after
provided, and continues to provide
the US Supreme Court ruled against
responsive data and other information
BP in its appeal of the US Minerals
to the federal regulatory agency.
Management Services 1997 demand
In a civil action that it filed June 28
in the federal district court for northern for coalbed methane royalties that the
Illinois, CFTC charged that BP Products Department of Interior agency said BPs
North America cornered the market for US exploration and production subsidiary did not pay.
February 2004 TET physical propane
BP America Production Co. contested
and manipulated the price.
the order because it came more than 6
It also charged the BP products unit
with trying to corner the April 2003
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natural gas reserves and is located halfway between the two major consumer
regionsthe United States and Asiais
Driven by the rapid development of on the way to becoming the worlds
LNG, gas markets are being transformed leading source of LNG, with a unique
from regional into global markets and
position of arbitrating the markets, he
have been undergoing other major
said. The Middle East is where we can
changes, said Total SA Executive Viceobserve how the gas industry is changPres. Yves-Louis Darricarrere at the
ing, not only because of the strategic
2006 Gastech Conference in Abu Dhabi. location of its gas resources, but also
As long as LNG flows were concen- [because of the] favorable conditions
trated east of the Suez Canal and based
for the implementation of a variety of
on inflexible, very long-term contracts, new gas technologies.
they basically reflected the same relaGas projects
tionship of mutual interdependence as
Darricarrere said megaprojects
when producers and consumers were
worldwide, but particularly in Qatar,
linked by a gas pipeline. Its just that
are becoming bolder and more daring.
a different technological solution was
LNG projects are not only innovative by
used.
He said globalization of gas markets their size but by their design and commercial arrangements, he said.
will soon result from the development
In addition, there is a sharp increase
of consumption in the Atlantic markets
in the number of gas receiving termicombined with the growing liquidity
nals in the main markets, particularly
of spot markets such as Henry Hub in
the US and the UKs National Balancing the US and Europe; construction of new
long-reach pipelines, such as the 380Point.
Global gas consumption is expected km Dolphin pipeline that extends from
Qatar to the UAE; and with the develto continue to grow by 2-3%/year
opment of sour gas and of gas fields in
through 2020. Fueled by this demand
harsh environments, such as that off
along with expensive and limited pipe
Sakhalin Island. For all the projects to
solutions and the gradual depletion of
be launched and meet success, major
gas fields near main consumer regionswhich is pushing supply further capital programs will have to be carried
out in both producer countries and
and further away from marketsLNG
consumer regions.
is taking a larger share of the traded
According to International Energy
gas market. It is growing by 8%/year
to represent 40% of traded gas in 2020 Agency estimates, Darricarrere said,
and 15% of consumption, Darricarrere capital investments for gas projects over
the next 25 years are placed at $3.9
said.
trillion ($156 billion/year), with the
In this context, the Middle East,
largest investment, $2.2 trillion, being
which sits on one third of the worlds
Managing growth
Technology and human resources
will drive continued innovation in the
gas industry, Darricarrere said.
Technology already allows us to
reach resources that were previously
considered stranded. Nevertheless,
a sustained effort is required to reach
even more difficult developments and
transform more stranded gas into
commercial fields, he said. Growth
in the gas market, which is very solid,
...cannot be met without deploying
more technology in a world where
the easiest resources have already been
tapped.
Arctic gas fields, tight gas, very sour
gas, small and remote resources will all
benefit from new technologies, and, in
common with large gas developments,
25
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COMPANY NEWS
Linn acquisitions
Linns Texas transaction involves a
field with a production mix of 55%
natural gas liquids, 35% natural gas,
and 10% oil from more than 820 wells.
The acquisition involves proved reserves
of 55 MMboe, more that half of which
are proved developed.
The Appalachian transactions include
more than 55 producing gas wells in
West Virginia. Those properties have 2426 bcf of proved reserves, Linn said.
27
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Other moves
Sonoran Energy Inc., Dallas, has
appointed Frank Smith president and
chief nancial ofcer.
Smiths appointment comes 6
months after he joined the company
as executive vice-president and chief
nancial ofcer. He has more than 30
years of senior banking experience,
interest in Lukoil to 20% through a stra- 44-50% interest in the seven wells, plus
tegic alliance announced in 2004 (OGJ, interests in two additional wells. Net
Oct. 11, 2004, p. 28).
production being acquired is 3.6 MMcfd
of gas equivalent. Production is 90% gas.
BPCLs block interests
Edge estimates there are at least 10
BPCL is paying $12.2 million to join a
proved undeveloped sites to be drilled
consortium led by Encore Oil PLC, Lonplus additional prospects that the comdon. Recently, BPCL formed an upstream
pany has yet to verify with a 3D seismic
subsidiary, Bharat Petro Resources, which
survey and a drilling program.
Lukoils outlet deal
has committed to spend $133 million on
Lukoils agreement with ConocoPhil- four blocks in India and two abroad.
FieldPoint deal
The reserves being acquired by Fieldlips covers 156 outlets in Belgium, 49
Edge buys Chapman stake
Point are expected to add an estimated
in Finland, 44 in the Czech Republic,
Edge said the transaction means that 108,000 boe in proved developed pro30 in Hungary, 83 in Poland, and 14 in
the company will operate the properducing reserves net to the company. The
the Slovak Republic.
ties. In 2005, Edge acquired nonopersellers name was not released.
The outlets, carrying the Jet brand
ated interests in seven producing wells
As with its previous acquisitions,
fuels, are to be rebranded as Lukoil
from three private companies. The exist- FieldPoint plans an active redevelwithin 2 years. Subject to regulatory
opment program for the property.
approvals, the transaction is expected to ing stakes involve 44-50% interest in
those wells.
ConocoPhillips operates the propclose in the second quarter.
Through Anadarkos divestiture, Edge erty.
ConocoPhillips plans to increase its
is obtaining an additional interest of
28
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WA
T CH I N G
T H E
WO
R L D
Russia to increase
oil, natural gas
exports in 2010
Price
wars
Eric Watkins
Senior Correspondent
Russias Economic Development and
Trade Ministry, in forecasting the countrys oil and gas production and exports
to 2010, said gas exports in 2010 will
increase to 223.4 billion cu m and oil
exports, to 271 million tonnes.
It said Russias 2010 natural gas production will increase to 722 billion cu
m in 2010, following 655 billion cu m
in 2006, 668 billion cu m in 2007, 683
billion cu m in 2008, and 705 billion
cu m in 2009.
It forecast gas exports of 202.5 billion cu m in 2006, 200.8 billion cu m
in 2007, 208.5 billion cu m in 2008,
and 218.4 billion cu m in 2009.
The ministry said oil production will
grow to 512 million tonnes in 2010,
following 480.4 million tonnes in
2006, 492 million tonnes in 2007, 500
million tonnes in 2008, and 507 million tonnes in 2009.
It expects crude oil exports of 251.5
million tonnes in 2006, 262 million
tonnes in 2007, 269 million tonnes in
2008, and 274 million tonnes in 2009.
It also reported that exports of
refined petroleum products103.5
million tonnes in 2006are forecast to grow to 105 million tonnes in
2010.
sherryh@pennwell.com
:liame
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EX
& DEVE
P L O R A T I O N
WEST AFRICA1
11.2
5.6
10
Niger Delta
deep water
Reserves in billion barrels as of Dec. 31, 2005.
Sources: OPEC, US Geological Survey
30
L O P M E N T
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39.1
55.8
95.0
17.3
-
38.50
20.6
2005). During
Total
332
100
21.0
211
this period, 567
Sources: IHS Inc., OPEC
exploratory wells
were drilled, 493
of them offshore, resulting in 225 new tania-Senegal-Bissau Province (northern
oil discoveries (~100 in deep water and West Africa).
102 in shallow water).
The Niger Delta is the richest, covMost of the recent exploration and
ers more than 300,000 sq km, and is
success took place in three prolific
unique given that it has only one petroprovinces (Fig. 1): the Niger Delta
leum system, the Tertiary Niger Delta
Tertiary system (central West Africa-Gulf System, the majority of which lies in
of Guinea), the Gabon-Congo Province Nigeria and extends onshore, offshore,
(southern West Africa), and the Mauri- and into deep water.
31
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EX
P L O R A T I O N
& DEVE
Fig. 3
L O P M E N T
discoveries totaling 500 million bbl
(2P) have been made in deep water.
1.6
0.04
the deepwater part of the
number for each country the
Senegal
0.05
0.05
Gambia
0
0
Congo basin in Angola in
total estimated undiscovered
Benin
0
0
Ghana
0.20
0.20
over 50 discoveries. Further
volume of oil in West Africa
Subtotal
1.79
0.10
1.69
success has taken place in
(including Nigeria) was 70
Nigeria
37.00
4.20
32.80
deepwater Congo (Brazbillion bbl. However, some
Total
69.80
12.50
57.80
zaville), although this part
12 billion bbl were discov*US Geological Survey estimate.
has been less explored
ered in 2001-05, leaving
Sources: USGS, IHS Inc., OPEC
compared with deepwater
32
International
oil companies
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Oil production
In 2005, West Africa produced 4.9
million b/d of oil, of which Nigeria accounted for 2.6 million b/d, from 200
fields and 2,400 producing oil wells in
the region excluding Nigeria and from
241 fields and 2,600 producing oil
wells in Nigeria.
By type of environment, 1.13 million b/d of the oil production in West
Africa (excluding Nigeria) came from 8
large projects grouping several fields.
Angola was the largest deepwater
producer with the most projects on
stream (5 projects: Xikomba, Kizomba
A and B, Girassol, and Jasmin), followed
by Equatorial Guinea (2 projects: Zafiro
and Ceiba), and Ivory Coast (1 project:
Baobab).
It is interesting to note that the
number of deepwater oil discoveries
on stream is low relative to the total
number of deepwater discoveries made
to date. Some 900,000 b/d of the total
production (excluding Nigeria) came
from 13 developments grouping over
100 shallow water fields and more than
50% of the total onshore production of
300,000 b/d from 3 development areas
grouping several fields (Table 4).
In Nigeria, 1.2 million b/d came
from 14 onshore projects grouping
some 200 fields. The shallow offshore
accounted for 1.3 million b/d of total
country oil production. Some 30 fields
were producing, but 4 projects accounted for 40% of the 1.3 million
b/d of production. At the end of 2005,
two deepwater projects were on stream
(Abo and Bonga), which produced
around 130,000 b/d. Bonga was still
ramping up to its design capacity of
200,000 b/d.
Overall, most of the production in-
Table 4
Deep Split
water producTotal
Onshore
Offshore
Deep water
tion in 2000
Million b/d
Angola
Eq. Guinea
Congo (Brazz.)
Gabon
Ivory Coast
Cameroon
Subtotal
1.23
0.36
0.24
0.25
0.09
0.08
2.25
0.01
0
0.08
0.14
0
0.02
0.30
0.50
0.06
0.16
0.11
0.03
0.06
0.90
0.77
0.27
0
0
0.06
0
1.13
0
0.07
na
na
0
na
0.07
Nigeria
2.60
4.90
1.20
1.50
1.30
2.20
0.13
1.30
0.10
Total
crease came from deepwater fields discovered in the last decade. The regions
first deepwater discovery came in 1995
off Equatorial Guinea, and its first oil
was produced 2 years after. However, 10
years later (2005) total deepwater oil
production from the region reached 1.3
million b/d, to represent 36% of global
deepwater production.
Cost environment
According to various estimates, West
African countries are characterized for
being low-cost producers, and this is
another reason that makes the region
attractive even though technical costs
have been rising in the last few years.
The technical cost (sum of finding,
development, and production costs per
barrel) in Angola, Congo (Brazzaville),
and Equatorial Guinea averaged $8.70/
bbl in 2005 compared with the global
industry average of $14.90/bbl. Technical costs in Nigeria were estimated
to be in the range of its West African
neighbors.
In the last 10 years, production costs
among West Africas largest producers
have remained flat and even declined
even though production from deepwater fields has risen rapidly.
The conventional wisdom is that
deepwater fields tend to have higher
production costs than shallow water
fields and that therefore costs should
rise, but this does not appear to be the
case thanks to the geology, reservoir
properties, technology, and good cost
management. However, looking at
finding and development (F&D) costs,
Active players
International operators produce most
of the oil in West Africa.
Many of these have been in the region since the early days of exploration,
but new companies have also gained
access including national oil companies
and independents.
Its worth mentioning that no international oil company has ever exited
West Africa completely; in fact most
continue to increase their presence in
existing or new countries by expanding
existing projects and taking new ones.
In terms of oil production share, in
2005 the top international companies
(BP, Chevron, ConocoPhillips, Eni,
Exxon, Shell, Statoil, and Total) produced 4.3 million b/d or 88% of the
total oil, but their entitlement (net oil)
was 2.7 million b/d or roughly 55%.
International independents and local
companies (nongovernment owned)
produced the rest, and these amounted
to over 70 companies (Fig. 3).
Most of the companies operate
under favorable production-sharing
contracts that allow even the most
challenging fields in deepwater Nigeria
and Angola to be developed at a good
financial return; only a handful of fields
remains under different arrangements
(Block 0 in Angola and Yombo field off
Congo-Brazzaville are concession agree-
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Kenya
A group led by Woodside Petroleum
Ltd., Perth, has spudded an exploration
well on the Pomboo prospect on Block
L-5 in the Indian Ocean off northern
Kenya.
The Lamu basin well is projected
to 5,000 m in 2,200 m of water. After
drilling Pomboo, the drillship is to
move to Block L-7 to drill the Sokwe
South prospect.
34
& DEVE
L O P M E N T
Laos
Salamander Energy Ltd., London,
said it is in late stages of negotiating
a production sharing contract for the
Vientiane and Savannakhet exploration
blocks in nonproducing Laos.
Salamander holds a 9.5% interest in
Hess Corp.-operated Phu Horm gas field
in northeastern Thailand. In Indonesia,
Salamander operates with 70% interest
the Bontang PSC, which has the 1982
Tutung gas-condensate discovery and
several leads. It holds 5% interest in the
BP-operated Offshore Northwest Java
PSC and 5% interest in the CNOOC-operated Southeast Sumatra PSC.
Salamander holds interests in several
other blocks in Thailand.
Colorado
Peru
Washington
Gran Tierra Energy Inc., Calgary,
plans to explore blocks 128 and 122 in
the Iquitos Arch Trend of the Maranon
basin in Peru.
The company is operator with 100%
working interest. The two blocks total
3.2 million acres.
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DR
I L L I N G
& PR
Fatigue
Fatigue refers to changes in proper-
O D U C T I O N
ties that can occur in metal due to repeated application of stresses or strains,
although usually this term applies to
those changes that lead to cracking or
failure.1
The problem of fatigue increases
during drilling of long and extendedreach wells. Despite several studies conducted of this subject, results seldom
match with experience because the
numerous drilling parameters
vary considerably. Among
those parameters,
environment
plays a vital role
because it varies
from well to well. The effect of severe
environmental factors can cause sulfide
stress cracking, hydrogen embrittlement, and corrosion of drillstring.
S LIP PROCESS
Fig. 1
S TAGES OF FATIGUE
Fig. 2
At
manufacturing
time
Smallest
detectable
crack
Initiation
Microcrack growth
Stage 1
Failure
Macrocrack growth
Stage 2
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DR
I L L I N G
-6
R=0.6
& PR
O D U C T I O N
Fig. 3
on fatigue life of
drill pipe is also
investigated based
on North Sea data.
EQUATIONS
da
= CDKm
dN
(1)
da
CDKm
=
dN
(1 - R) Kic - DK
(2)
2.5 x10-6
2.0 x10-6
Fatigue
mechanism
DK = Kmax - Kmin
-6
Kmax = vmax
ra
Y
Q
Kmin = vmin
ra
Y
Q
-6
-6
Nomenclature
ppg
= Parts/gram
cc
a
= Cubic cm
= Crack length, in.
= Number of cycles
-7
Kmax
-7
Kmin
Ksi in
= Minimum stress intensity factor,
-7
Kic
Ksi in
= Critical stress intensity factor,
-7
Ksi in
= Stress ratio
-7
-7
-7
36
Kmax
Kmin
da
dN
DK
C
m
-7
R=
vmin
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T H E E N E R G Y I N D U S T RY S M O S T P O W E R F U L J O B B O A R D
Turning Information into innovation | Serving Strategic Markets Worldwide since 1910
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DR
I L L I N G
& PR
S-N CURVE
O D U C T I O N
Fig. 5
Fig. 6
3.0 x10-6
35
R=0.6
30
Crack growth rate, in./cycle
2.5 x10-6
Stress amplitude
25
20
15
10
2.0 x10-6
1.5 x10-6
1.0 x10-6
0.5 x10-6
5
0
0
4
4.5
5
6
5.5
Log cycles to failure
6.5
50
Statistical analysis
100
150
200
RPM
250
300
350
400
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Fig. 7
2.5 x10-6
Fig. 8
3.0 x10-6
2.5 x10-6
3.0 x10-6
2.0 x10-6
1.5 x10-6
1.0 x10-6
0.5 x10-6
2.0 x10-6
1.5 x10-6
1.0 x10-6
0.5 x10-6
0
0
6
8
Mud pH
10
12
14
-6
-6
-6
-6
-6
-6
6 7 8 9 10 11 12 13 14 15 16
Mud weight, ppg
39
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DR
I L L I N G
& PR
O D U C T I O N
Fig. 10
2.5 x10-6
Fig. 11
3.0 x10-6
2.5 x10-6
Crack growth rate, in./cycle
3.0 x10-6
2.0 x10-6
1.5 x10-6
1.0 x10-6
0.5 x10-6
2.0 x10-6
1.5 x10-6
1.0 x10-6
0.5 x10-6
0
0
10
15
20
25
30
35
Max. weight on bit, kip
40
45
50
0
0
Next steps
There is no information about 80%
of the life of a drill pipe. More research
is needed to understand crack propagation from microlevel to visibility scale.
This analysis suggests a new inspection interval, based on Forman crackgrowth model, that claims to reduce
washouts by 50%.
It seems that various drilling parameters have almost no effect on crackpropagation rate. The WOB should not
be increased, as more WOB will cause
cracks to propagate faster. Greater
depths can be achieved by applying
more torque and constant WOB.
All studies have been done on S135
19.50 lb/ft, premium class pipe.
The data only represent North Sea
failures.
Acknowledgments
Appreciation is due Maersk Oil and
Gas (drilling department) for providing
data and the suggestions and assistance
40
References
1. Suresh, Subra, Fatigue of Materials, Second ed., Cambridge University
Press, Cambridge, UK, 1998, 679 pp.
2. Felters, Karl L., The Nature of Fatigue, Mechanical Engineering Aspects
of Drilling and Production Symposium,
Fort Worth, Mar. 23-24, 1964; published in Journal of Petroleum Technology.
3. Metals Handbook, Ninth ed., ASM
Intl., Materials Park, Ohio, Vol. 2, 1986,
p. 102.
4. Standard DS-1, Drill Stem Design
and Operation, Third ed., T H Hill Associates Inc., Houston, January 2004.
5. Nyen Twilhaar, G.D., and Hogen
Esch, J.H.L., Drill String Identification
to Reduce Drill String Failures, IADC/
SPE paper 17210, IADC/SPE Drilling
Conference, Dallas, Feb. 28-Mar. 2,
1988.
6. Howard, J.A., Halbert, M.E., and
Lubinski, Arthur, Systematic Tracking
of Fatigue and Crack Growth to Optimize Drill String Reliability, IADC/SPE
paper 25775, SPE/IADC Drilling Conference, Amsterdam, Feb. 23-25, 1993.
7. Azar, J.J., and Lummus, J.L., The
Effect of Drill Fluid pH on Drill Pipe
Corrosion Fatigue Performance, SPE
10
15
20
25
30
35
Maximum torque, 1,000-ft-lb
40
45
Bibliography
Vaisberg, O., Vincke, O., Perrin, G,
Sarda, J.P., and Fay, J.B., Fatigue of Drill
StringState of the Art, Oil and Gas
Science & TechnologyRev. IFP, Vol. 57,
No. 1, 2002, pp. 7-37.
The author
Raja Hamayun Zafar
(s051023@student.dtu.dk)
is working with Mrsk
Oil and Gas on a drill pipe
fatigue failure project. Zafar
holds a BEng in mechanical
engineering from UET, Lahore,
Pakistan, and will complete
an MSc (April 2007) in
petroleum engineering at the Technical University
of Denmark (DTU). He is a member of the SPE
and SPEs student chapter in Denmark
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A closed-in housing protects the Higgins Loop from the weather (Fig. 1).
41
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DR
I L L I N G
Water purication
& PR
O D U C T I O N
Maintenance costs as a
percentage of equipment
costs are lower than average
for water treatment equipment.
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www.ogjresearch.com
The author
Rich Dennis is product manager
for Severn Trent Services Inc.s
International Rening
Catalyst Compilation
43
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PR
O C E S S I N G
Because inhibitors
are important in reducing formation of hydrates in gas streams,
we performed a study to
investigate and evaluate
Gas Processing
the accuracy of available
tools that predict hydrate
formation conditions in the presence of
inhibitors.
We
evaluated
two commercial
processsimulation
programs
and three shortcut methods. The study
covered wide ranges of pressures and
inhibitor concentrations.
Required model parameters for one
of the shortcut methods are reported
for the first time.
In general, engineers should check
the process simulator results against
experimental data before using the
simulator for an actual process. All three
shortcut methods studied were accurate
down to 20 F.; below that temperature,
the Moshfeghian-Maddox method is
most accurate but requires more calculations.
Hydrate inhibitors
E FFECT OF CO2*
Fig. 2
5.5
Hydrate formation
temperature, C.
5.0
ProMax
HYSYS
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0
6
8
CO2 in feed gas, mole %
10
12
44
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Hydrate formation
temperature, C.
N
veloped and incorporated into software
CO
14.19
3.00
CH
84.13
71.60
93.51
89.99
84.50
74.130
programs.
4.67
4.73
4.58
6.31
8.70
7
.210
CH
CH
2.34
1.94
1.31
2.40
3.80
4.500
This study evaluated the accuracy of
iC H
0.10
0.30
0.900
0.93
0.79
0.20
0.50
1.810
nC H
two commercial process simulators
iC H
0.10
0.10
0.870
1
2
ProMax and HYSYS. Three shortcut
nC H
0.93
0.79
0.10
0.10
0.890
nC H
0.10
0.30
9.690
methods can be used to calculate the
Inhibitor
MeOH
MeOH
MeOH
MeOH
MeOH
MEG
Concentration
required concentration of inhibitor and
range, wt %
10-20
10-20
65-85
65-85
20-40
25-50
the injection rate for dewpoint correcPressure, psia
131-2,729 151-2,778
95-2,955
110-2,926
5,366-13,474
105-2,879
Data points
13
18
15
14
13
10
tion, NGL recovery, or pipeline transReference
7
7
8
8
9
10
portation of natural gas. The calculation
procedure is shown in Chapter 6 of
In some reports, overall composition
Gas Conditioning and Processing, Vol. experimental data include pressure,
1.3 The three methods we evaluated are temperature, dry gas composition, and can be approximately inferred by the
those developed by Hammerschmidt,4
phase equilibrium data presented, but
concentration of inhibitor in water
Nielsen-Bucklin,5 and Moshfeghiansolution mixed with the hydrate former. McIntyre10 disputes that these data do
Maddox (OGJ, Aug. 30, 1993, p. 78).
Overall compositions are not provided. not extend to the higher inhibitor conThe study
examined multiFig. 4
component natural P ROCESS SIMULATOR ESTIMATES*
15
gas mixtures over
Methanol added (wt %),
data source
a wide pressure
13
range, up to 100
0, Experimental
MPa, and identi11
0, ProMax
fied the strengths
0, HYSYS
9
and limitations of
20, Experimental
these methods.
2
10
10
12
Computer
simulators
Various literature sources report
hydrate formation
pressure and temperature conditions.6-9 Reported
12
14
20, ProMax
20, HYSYS
5
40, Experimental
40, ProMax
40, HYSYS
1
30
*Gas E.
40
50
60
70
80
90
100
45
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PR
O C E S S I N G
Fig. 5
QUATIONS
EEQUATIONS
100
XR =
xR = 1 - exp c
50
T0 - T m
A
(1)
(2)
1
DH 1
1
; - Em
xR = 1 - cH O exp c
nR T
T0
(3)
- 2,063
DH
=
nR
a + b : 10- 3 + d : ln P
(4)
(5)
a2 T
A = a1 + 1,000
(6)
b2 T
1,000
(7)
50
100
ProMax
B = b1 +
HYSYS
150
150
100
50
0
50
Measured hydrate formation temperature, F
.
100
of inhibitor in the
aqueous phase.
100
Mixing effects
will change the
temperature; we
50
therefore added
a heater-cooler
with no pressure
0
ProMax
drop to readjust
HYSYS
the mixed separator feed stream
50
50
0
50
100
temperature to
Measured hydrate formation temperature, F
.
*Gas F with 25 wt % and 50 wt % MEG.
the experimental
hydrate formation
temperature value.
centrations presented, the region where
This process flow diagram ensures
they are most needed.
that the condition of hydrate-formation
Fig. 1 shows the process flow diatemperature in the three-phase separagram used in this study to simulate the tor is close to those measured experiexperimental measurements. Feed gas,
mentally. We therefore used it in both
inhibitor, and water are mixed at the
commercial process simulators.
mixer. All three streams are at the same
Overall effects
pressure and temperature.
Table 1 shows different feed-gas
To investigate the impact of overall
compositions. The inhibitor stream is
composition (which was unknown)
either pure methanol or MEG, and the
on hydrate formation temperature, we
water stream is pure water. The waterstream flow rate was set to a small flow adjusted the water rate, CO2 concentrarate for the resulting aqueous phase. We tion, and heavy ends.
adjusted the inhibitor-stream flow rate
to produce the specified weight percent
46
(MW) (T0 - T)
A + (MW) (T0 - T)
Fig. 6
Nomenclature
A
= Moshfeghian-Maddox constant
AH = Hammerschmidt constant,
1,297 in SI units or 2,335 in
English units
ANB = Nielsen-Bucklin constant, 72 in
SI units or 129.6 in
English units
B
= Moshfeghian-Maddox constant
MW = Molecular weight of inhibitor
P
= Pressure, psia
xR
= Mole fraction of inhibitor in
aqueous phase
XR = Weight fraction of inhibitor in
aqueous phase
T
= Minimum owing temperature,
C. or F for Equations 1 and 2,
.
R. for Equation 3
T0
= Hydrate forming temperature,
C. or F for Equations 1 and 2,
.
R. for Equation 3
1
2
1
2
H2O
=
=
=
=
=
=
=
=
Constant
Constant
Constant
Constant
Constant
Constant
Constant
Water activity coefcient
Water rate
For 100 mole/hr of Gas E in the
presence of 40 wt % methanol, we
varied the water rate from 1-10 mole/
hr and predicted hydrate-formation
temperatures using the two simulators.
For each water flow rate, we adjusted
the inhibitor stream rate to produce the
specified inhibitor concentration of 40
wt % methanol.
Hydrate-formation temperature is
independent of the water rate in both
simulators. In subsequent runs, we set
the water-stream rate to 10 mole/hr for
100 mole/hr of gas.
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The oil sands and heavy oil industries are dynamic markets for both the energy
and power business sectors. Quickly advancing development of oil sands and
heavy oil assets is creating a huge demand for technology and services.
Cogeneration of power is driving facilities and infrastructure growth.
PennWell Conferences and Exhibitions now provides a premium event for this
important industry the Oil Sands and Heavy Oil Technologies Conference &
Exhibition. This pivotal conference and exhibition provides a sophisticated
new venue where buyers and sellers meet, learn and build business
relationships.
A rich learning and marketing environment is ensured by a PennWell-designed
program focused on oil sands and heavy oil through:
Exhibitions
Topic-specific technical papers
written for this event
High-visibility sponsorships
Expert-led, expert-attended
technical sessions
Mark your calendars and plan to be with us as PennWell continues to bring major
conferences and exhibitions to the worlds most pertinent energy markets.
Owned & Produced by:
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PR
O C E S S I N G
E STIMATION METHODS*
48
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w w w. d e e p w a t e r o p e r a t i o n s . c o m
____________________________________
The fourth annual Deepwater Operations Conference & Exhibition will be held January
23 25, 2007 in Galveston, Texas. Building on the success of past three shows, this
years conference sessions will highlight the importance of measurable benefits
pertaining to deepwater operations and conquering those challenges.
Conference Manager
Gail Killough
Phone: +1 713 963 6251
Fax: +1 713 963 6201
Email: deepwateropsinfo@pennwell.com
Plan on joining us this year either through attending, sponsoring or exhibiting in this
highly focused conference and exhibition.
Hosted by:
Sponsored by:
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PR
O C E S S I N G
Calculated hydrate
formation temperature, F
.
50
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The authors
Mahmood Moshfeghian
(mahmoodm@jmcampbell.
com) is a senior research
engineer at John M. Campbell
& Co., Norman, Okla. Before
joining JMC, he was professor of chemical engineering at
Shiraz University, Iran, where
he served as department head
and associate dean of research in the college of engineering. He was previously professor of chemical
engineering at the University of Qatar and a senior
research scientist at the Kuwait Institute for Scientific Research. Moshfeghian holds BS, MS, and PhD
degrees in chemical engineering from Oklahoma
State University. He is a member of AICHE.
John C. Bourdon is vice-president of the John M. Campbell
& Co. He has more than 30
years experience in hydrocarbon processing. Bourdon
is a Campbell gas instructor
for Gas Conditioning and
Processing and consultant specializing in sour gas processing.
He has been involved in the development of several
sulfur-related technologies and mechanical innovations. Bourdon holds a BS in chemical engineering from the Georgia Institute of Technology and
advanced degrees in other fields. He is a registered
Professional Engineer and member of AIChE, SPE,
and Chi Epsilon Sigma Honor Society.
Robert N. Maddox (rmaddox
@okstate.edu) is the Sheerar
Chair emeritus professor
of chemical engineering at
Oklahoma State University. He
served as head of the chemical
engineering department from
1958 to 1978. He is a fellow
of AIChE and a member of
GPA.
Turning Information into innovation | Serving Strategic Markets Worldwide since 1910
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TR
A N S P O R T A T I O N
ENVIRONMENTAL
MITIGATION2
Gulfstream Natural
Gas System LLC gathered
ROV and diver-collected
data to determine the
extent and severity of
project construction efPipelines
fects on hard-live bottom
areas within the trench
corridor and associated spoil mounds
and anchor strike-cable sweep locations.
Transect analysis
Gulfstream randomly selected 45
frames from each transect video collected by ROV and 45 photographs
from each diver-collected transect.
Analysis of each for percent biotal cover
by taxon followed the random point
analysis described by Bohnsack. This
analysis first scatters 100 random dots
onto each transect image. Tabulating the
percentage of dots touching organisms
of each individual taxon then yields the
percent biotal cover for a given taxon.
Averaging data from individual images
along each transect produces a mean for
the entire transect.
Reference habitat transect data represented unaffected conditions for statistical comparison to trenched pipeline
corridor and anchor strike transects.
Gulfstream calculated mean percent
cover, epifaunal-epifloral count, species
richness, and species diversity for each
transect. Percent cover and epifaunal-
Table 1
10.53
Mean = 6.61
1.82
0.48
0.23
0.03
0
0
0
4.07
1.44
1.82
0.11
0.13
0.02
0
0
5.25
1.18
0.07
0.25
0
0
0.01
0
0.44
Mean = 0.73
F or H value1
5.9
0.1
6.2
1.5
0.059
0.9
8.4
0.195
0.06
0.35
0.60
0.05
0
0
0
1.09
0.15
0.28
0.20
0.03
0
0.01
0
0.67
Table 2
P value1 2
Statistical test
0.052
0.995
*0.046
0.469
0.970
0.628
*0.015
0.824
Kruskal-Wallis
Kruskal-Wallis
Kruskal-Wallis
Kruskal-Wallis
Kruskal-Wallis
Kruskal-Wallis
Kruskal-Wallis
One-way ANOVA
All percent cover data were arcsin square root-transformed in an attempt to meet parametric test assumptions.
Parametric test assumptions could not be satised and a nonparametric Kruskal-Wallis test was performed instead. A
Dunns test was performed for all posthoc multiple comparisons. 2Signicant P values are denoted with an asterisk.
Underlined comparisons are not signicant. Results are listed in order of decreasing mean abundance. 3Although the
ANOVA result was signicant, multiple comparison results did not indicate any signicant pair-related differences at the
P = 0.05 level.
52
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Fig. 1
Trench corridor
Fig. 1a
Corals (hard) 4.04%
Coraline algae 1.04%
Echinoderms 2.41%
Other 2.26%
Fig. 1b
Anenomes 0.02%
Ascidians 0.02%
Bivalves 0.05%
Other 3.42%
Gastropods 0.29%
Turf Algae 34.19%
Gorgonians 27.50%
Macroalgae 6.71%
Sponges 21.23%
Sponges 9.90%
Serpulids 0.27%
Macroalgae 3.85%
Spoil mound
Anchor strike
Fig. 1c
Other 1.40%
Ascidians 0.09%
Bivalves 0.09%
Corals (hard) 7.85%
Echinoderms 0.09%
Fig. 1d
Echinoderms 0.05%
Gastropods 0.04%
Gorgonians 11.50%
Gorgonians 8.87%
Hydroids 0.51%
Macroalgae 7.93%
Serpulids 0.02%
Gastropods 0.07%
Gorgonians 11.66%
Sponges 19.49%
Hydroids 0.12%
Macroalgae 3.47%
Sponges 10.35%
14.0
included number of species
many organisms to a specific
Seagrass
7
.8
9.0
6.4
Macroalgae
7
.6
9.5
7
.3
(s), Margalefs species richgenus or species from the
Cinachyra
7
.2
7
.0
Halimeda
6.0
7
.9
ness (d), Pielous evenness
transect images proved difSolenaastrea hyades
6.0
6.5
Gorgonian
5.2
10.9
12.3
index (J), Shannon-Wiener
ficult. These instances used a
Erect sponge
11.1
14.0
(H'), and Simpson (1-').
unique identifier for classifiAsteroidean
5.9
9.0
Margalefs and Pielous
cation (e.g., orange sponge).
*Percent contribution is only provided for a species if it contributed >5.0% of differences.
bias tends toward rare speAn unknown category
cies, while the Simpson
classified shadows or out-ofindex is considered biased
focus portions of individual
than 5% cover classified as unknown, it
toward dominant species. Shannonframes. If a transect contained greater
was excluded from analysis.
Oil & Gas Journal / Jan. 8, 2007
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A N S P O R T A T I O N
Fig. 2
Reference habitat
Fig. 2a
Trench corridors
Fig. 2b
8
2
7
Mean cover, %
Mean cover, %
1
6
5
4
3
2
1
0
CO
LG
CA
HD
EC
RG
GO
G
AL
M
NG
SP
L
RA
TU
Zone 1
Zone 2
Zone 3
Overall
Spoil mounds
LC
CO
CO = hard corals
CALG = coralline algae
ECHD = echinoderm
GORG = gorgonian
HD
EC
RG
GO
G
AL
M
NG
SP
L
RA
TU
LC
MALG = macroalgae
SPNG = sponge
TURAL = turf algae
LC = all biotic cover
Fig. 2c
11
LG
CA
Fig. 2d
20
10
9
15
Mean cover, %
Mean cover, %
8
7
6
5
4
10
6
3
2
2
1
0
CO
LG
CA
HD
EC
RG
GO
G
AL
M
NG
SP
L
RA
TU
LC
CO
LG
CA
HD
EC
RG
GO
G
AL
M
NG
SP
L
RA
TU
LC
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For Information
E-mail: orcinfo@pennwell.com
Phone: 1.918.831.9488 or 1.918.832.9267
To Order
Web site: www.ogjresearch.com
Phone: 1.800.752.9764 or 1.918.831.9421
LNGINFO
$395.00 US
OGJ200Q
$295.00 US
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Fig. 3
3,500
3,000
Depth Zone 1
Depth Zone 2
Depth Zone 3
Depth Zone 4
Mean epifauna/area
2,500
2,000
1,500
1,000
500
0
Reference
Anchor
strike
Spoil
mound
Trench
Hard bottom
replacement
Trenched corridor
Gulfstream established ten 25-m random transects within both the trench
corridor and trench spoil mounds
perpendicular to the pipeline in Depth
Zones 1, 2, and 3. Analysis of trench
corridor transects included percent biotal cover, species richness, and species
diversity when compared to reference
habitat results.
The trench corridor had a significantly higher proportion of biotic cover
than the reference habitat, with biotic
cover in the trench corridor of nearly
6% (Table 4). Turf algae, gorgonians,
and sponges dominated the trench corridor, with a large percentage of coralline algae observed (Figs. 1b and 2b),
similar to the reference habitat.
The high degree of variability limited differences between trench corridor and reference habitat transects in
percent cover for individual taxonomic
categories (Table 4). Taxonomic diversity was similarly limited between the
trench corridor and reference habitat.
ANOSIM results indicated a significant
difference in community structure between the trench corridor and reference
habitat transects.
Gulfstream also analyzed hard-live
bottom recovery by depth. The amount
of biotic cover decreased with depth
along the trench corridor, but the trend
was not statistically significant.
Trench spoil mound transects were
also analyzed for percent biotal cover,
species richness, and species diversity,
and compared to reference habitat
results. The spoil mounds showed a
similarly significantly higher proportion of biotic cover than the reference
habitat; more than 7% (Table 5). The
trench corridor had a smaller mean
biotic cover than the spoil mounds, but
the difference was not significant.
Turf algae, gorgonians, and sponges
(Figs. 1c and 2c) dominated the spoil
mound transects. Turf algae represented
about 50% of the fauna present. Analysis did not find a significant difference
in the percent cover of individual taxonomic categories (Table 5).
Taxonomic diversity on the spoil
Oil & Gas Journal / Jan. 8, 2007
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Anchor-cable transects
Analysis of anchor strike and cable
sweep transect images looked for
percent biotal cover, species richness,
and species diversity, before statistically
comparing them to the reference habitat (Figs. 1d and 2d).
The proportion of biotic cover
showed no significant difference between the anchor strike-cable sweep
and reference habitat transects (Table
5). Visible anchor strikes, however,
held a higher proportion of biotic
cover (Mann-Whitney, T = 346.0, P =
0.001*) within the strikes themselves
(mean of 9.5 2.3%) than in the reference habitat (mean of 1.1 0.4%).
Gulfstream expected that anchor
strikes and cable sweeps would increase
the amount of bare rock by scraping
away the surface sediment veneer. The
percent cover of bare rock the company
identified in the anchor strike-cable
sweep transects, however, was only
slightly greater (and not significantly
different) than that found in reference
habitat transects.
Comparing bare rock cover by depth,
Zone 1 exhibited a significantly higher
amount of exposed rock than Zone 2.
Performing a separate analysis examining only areas that showed visible signs
of anchor impact identified a significantly greater percent cover of bare
rock (Mann-Whitney, T = 354.0, P =
0.001*, mean of 11.3 2.7%) than the
reference habitat (mean of 4.0 2.9%).
Biological assessment
Undisturbed hard-live bottom reference habitat areas contained very little
biotic cover (<2%) with a predominantly sand veneer substrate. Dominant
12
H value
P value
5.7
10.7
7
.0
2.6
0.2
1.1
4.9
11.2
Table 4
2
0.560
*0.005
*0.030
0.276
0.890
0.585
0.082
*0.004
All percent cover data were arcsin square root-transformed in an attempt to meet parametric test assumptions.
Parametric test assumptions could not be satised and a nonparametric Kruskal-Wallis test was performed instead. A
Dunns test was performed for all posthoc multiple comparisons. 2Signicant P values are denoted with an asterisk.
Treatments are listed in order of decreasing mean abundance. Treatments sharing an underline are not signi cantly
different. 3Although the ANOVA result was signicant, multiple comparison results did not indicate any signicant pairrelated differences at the P = 0.05 level.
Table 5
1
Metric
T value
P value
Corals (hard)
Coralline algae
Echinoderm
Gorgonians
Macroalgae
Sponge
Turf algae
923.5
991.0
915.0
988.5
895.5
1,028.0
926.5
1,016.5
0.906
0.262
0.994
0.280
0.778
0.096
0.870
0.135
All percent cover data were arcsin square root-transformed in an attempt to meet parametric test assumptions.
Parametric test assumptions could not be satised and a nonparametric Mann-Whitney Test was performed instead.
2
Treatments sharing an underline are not signicantly different. Treatments are listed in order of decreasing mean
abundance.
species composition.
Gulfstream activities appear to have
met both criteria, as biotic cover was
enhanced in the trench corridor, spoil
mound, and visible anchor strike areas
compared to natural undisturbed hardlive bottom. An increased amount of
bare substrate for epifaunal-epifloral
recruitment likely caused the increase
in cover.
The enhanced recruitment and
greater diversity of fauna found in the
areas of the pipeline, however, did not
significantly alter the community structure from that found on undisturbed
bottom. Rock exposed during trenching
and anchoring activities allows for attachment sites in an otherwise predominately sand veneer matrix.
These results are based solely on
percent-cover information. Noncolonial
epifauna were also counted along each
transect. Analysis found similar trends
in abundance when examining these
counts (Fig. 3).
57
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E q u i p m e n t / S o f t w a r e / L i t e r a t u r e
new
!
in Business School
Much has been written about perfecting sales techniques, but in this
new book author James R. Hutton shares his decades of experience
in the petroleum industry to help readers master the challenge of
industrial sales. In How to Sell Technical Equipment and Services,
Hutton covers the many aspects involved in B2B sales, with product
knowledge being the key to success. Hutton breaks down the process
into separate chapters covering more than 60 different topics ranging
from identifying the decision makers and gathering intelligence, to
handling unpleasant customers and introducing new products. Sales
professionals, sales manager, and senior executives in all industries
will nd the information found in this book to be invaluable.
www.pennwellbooks.com
800.752.9764
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S e r v i c e s / S u p p l i e r s
Intec Engineering
Houston, has announced that E.G. Skip
Ward has joined the firm as a technical
advisor. Ward will continue to serve as
associate director of the Offshore Technology Research Center on a part-time basis.
He joined the OTRC in 1998 following his
retirement from Shell, where he had 30
years of experience. He holds MS and PhD
degrees in mechanical engineering from
the University of Houston.
One of Wards initial tasks with Intec is
to develop and manage a research project
to improve the understanding of vortexinduced high-mode vibration causing
fatigue damage to deepwater steel catenary
risers.
Intec Engineering, established in 1984, has
450 employees in offices on five continents.
Severn Glocon
Houston, has appointed Bill Meeks as
sales manager for the Americas. Meeks has
broad experience in the control valve and
actuation industries, having previously
held positions with Fisher Controls, Valtek,
and Tyco/Keystone.
Severn Glocon is a leading UK-based
manufacturer of control valves for the oil,
gas, LNG, petrochemical, and power generation industries.
SolArc Inc.
Houston, has announced its acquisition
of Trinity Apex Solutions Inc., a Dallasbased developer of software systems for
natural gas producers and marketers. The
combination of Trinity Apexs full commercial management solution of natural
gas from the wellhead to burner tip, and
SolArcs trading, physical product handling
and risk management capabilities software, will enable the company to provide
customers with solutions for the entire
natural gas value chain.
SolArc Inc. is a leading provider of
enterprise supply and trade management
solutions for global energy companies.
59
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Statistics
Districts 1-4
District 5
Total US
1
1
1
12-22
12-15
12-22
12-15
12-22
12-15
12-23
2006
2006
2006
2006
2006
2006
2005
1,000 b/d
Total motor gasoline .......................
Mo. gas. blending comp. ................
Distillate2 .........................................
Residual ...........................................
Jet fuel-kerosine .............................
LPG...................................................
Unfinished oils ................................
Other ................................................
Total products ..........................
Canadian crude ...............................
Other foreign ...................................
Total crude ................................
Total imports ............................
650
549
371
360
58
295
513
480
3,276
375
527
356
212
104
332
528
337
2,771
17
8
18
105
118
24
60
350
8
8
15
44
106
76
16
273
667
557
389
465
176
295
537
540
3,626
383
535
371
256
210
332
604
353
3,044
360
762
402
601
171
301
462
400
3,459
1,967
8,266
10,233
13,509
1,616
6,346
7,962
10,733
282
550
832
1,182
165
715
880
1,153
2,249
8,816
11,065
14,691
1,781
7,061
8,842
11,886
1,567
8,853
10,420
13,879
1
Revised. 2Includes No. 4 fuel oil.
Source: American Petroleum Institute.
Data available in OGJ Online Research Center.
72.46
62.39
10.07
69.39
56.47
12.92
3.06
5.92
2.85
4.4
10.5
22.1
67.57
3.29
4.9
58.04
9.53
4.79
1.50
8.3
15.7
71.66
6.01
8.4
60.17
11.49
5.94
0.06
9.9
0.5
14,679
69,339
169,473
14,753
1
51,097
1
319,341
321,473
323,482
50,987
51,476
65,208
5,995
27,563
201,229
199,821
202,504
23,684
16,216
27,045
1,949
21,216
90,110
89,324
68,218
9,481
7,262
13,395
491
7,384
38,013
38,359
41,336
65,377
24,729
33,506
2,664
11,521
137,797
135,212
129,487
18,763
1,686
18,225
476
5,846
44,996
44,354
37,900
8,132
12,277
41,645
3,484
20,927
86,465
87,647
90,511
1
Included in total motor gasoline. 2Includes 4.530 million bbl of Alaskan crude in transit by water. 3Revised.
Source: American Petroleum Institute.
Data available in OGJ Online Research Center.
REFINERY OPERATIONS
Total
Input
renery
Crude
to crude
Operable
Percent
input
runs
stills
capacity
operated
1,000 b/d
3,180
106
3,286
2,135
446
888
3,469
973
3,919
3,413
221
146
8,672
699
2,933
19,059
19,037
16,908
1,416
95
1,511
2,051
420
722
3,193
589
3,336
3,246
186
90
7,447
536
2,696
15,383
15,414
14,875
1,417
95
1,512
2,054
432
734
3,220
621
3,362
3,249
195
92
7,519
543
2,837
15,361
15,640
15,543
1,618
95
1,713
2,355
442
786
3,583
647
4,031
3,264
215
113
8,270
596
3,173
17,335
17,335
17,115
87.6
100.0
88.3
87.2
97.7
93.4
89.9
96.0
83.4
99.5
90.7
81.4
90.9
91.1
89.4
90.2
90.2
90.8
REFINERY OUTPUT
Total
motor
Jet fuel, Fuel oils
gasoline
kerosine
Distillate
Residual
1,000 b/d
1,762
9
1,771
1,258
315
517
2,090
476
1,284
1,428
79
98
3,365
335
1,794
9,355
9,118
8,816
87
0
87
130
31
38
199
45
347
410
8
1
811
26
460
1,583
1,438
1,460
534
26
560
551
125
274
950
175
775
769
45
33
1,797
174
608
4,089
4,127
4,069
132
1
133
57
10
5
72
7
118
170
3
0
298
15
150
668
625
696
*Revised.
Source: American Petroleum Institute.
Data available in OGJ Online Research Center.
60
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Price
Pump
Pump
ex tax
price*
price
12-27-06 12-27-06
12-28-05
/gal
(Approx. prices for self-service unleaded gasoline)
Atlanta ..........................
187.2
226.9
Baltimore ......................
185.2
227.1
Boston ..........................
188.6
230.5
Buffalo ..........................
189.4
249.5
Miami ...........................
195.5
245.8
Newark .........................
190.4
223.3
New York ......................
182.4
242.5
Norfolk ..........................
183.0
220.6
Philadelphia ..................
196.1
246.8
Pittsburgh .....................
184.4
235.1
Wash., DC ....................
196.6
235.0
PAD I avg..................
189.0
234.8
215.9
215.7
208.7
211.9
218.7
217.8
221.8
220.8
223.7
220.7
223.7
218.2
Chicago .........................
Cleveland ......................
Des Moines ..................
Detroit ..........................
Indianapolis ..................
Kansas City ...................
Louisville ......................
Memphis ......................
Milwaukee ...................
Minn.-St. Paul ..............
Oklahoma City ..............
Omaha ..........................
St. Louis ........................
Tulsa .............................
Wichita .........................
PAD II avg.................
214.8
180.8
181.1
177.3
183.5
175.5
187.6
179.4
182.6
181.8
175.1
178.2
182.5
174.8
174.5
182.0
265.7
227.2
221.5
226.5
228.5
211.5
224.5
219.2
233.9
222.2
210.5
224.6
218.5
210.2
217.9
224.2
237.1
211.6
210.5
212.6
215.4
213.5
210.6
218.6
220.7
219.5
209.5
215.6
219.6
208.5
210.4
215.6
Albuquerque .................
Birmingham ..................
Dallas-Fort Worth .........
Houston ........................
Little Rock .....................
New Orleans ................
San Antonio ..................
PAD III avg................
183.8
184.8
185.1
180.1
181.6
183.1
180.7
182.7
220.2
223.5
223.5
210.5
221.8
221.5
219.1
221.1
212.7
211.7
210.8
208.8
211.7
254.6
215.7
218.0
Cheyenne ......................
Denver ..........................
Salt Lake City ...............
PAD IV avg. ..............
180.8
172.5
183.7
179.0
213.2
212.9
226.6
217.5
210.8
220.8
215.8
215.8
199.1
196.1
218.9
206.1
220.7
222.8
210.6
187.8
184.9
180.1
212.3
181.6
257.6
233.5
262.2
264.6
279.2
275.2
262.1
231.4
228.5
223.7
255.9
223.7
226.0
224.9
222.8
230.9
233.9
224.9
227.3
218.3
216.5
229.9
12-29-06 12-30-05
Alabama ............................................
Alaska ................................................
Arkansas ............................................
California ...........................................
Land .................................................
Offshore ..........................................
Colorado ............................................
Florida ................................................
Illinois ................................................
Indiana ...............................................
Kansas ...............................................
Kentucky ............................................
Louisiana ...........................................
N. Land ............................................
S. Inland waters ..............................
S. Land ............................................
Offshore ..........................................
Maryland ...........................................
Michigan ...........................................
Mississippi ........................................
Montana ............................................
Nebraska ...........................................
New Mexico ......................................
New York ...........................................
North Dakota .....................................
Ohio ...................................................
Oklahoma ..........................................
Pennsylvania .....................................
South Dakota .....................................
Texas .................................................
Offshore ..........................................
Inland waters ..................................
Dist. 1 ..............................................
Dist. 2 ..............................................
Dist. 3 ..............................................
Dist. 4 ..............................................
Dist. 5 ..............................................
Dist. 6 ..............................................
Dist. 7B ............................................
Dist. 7C ............................................
Dist. 8 ..............................................
Dist. 8A ...........................................
Dist. 9 ..............................................
Dist. 10 ............................................
Utah ...................................................
West Virginia ....................................
Wyoming ...........................................
OthersHI-1; ID-1; NV-1; TN-4;
WA-1 ...............................................
Total US
Total Canada ..............................
Grand total ..................................
Oil rigs ...............................................
Gas rigs .............................................
Total offshore ....................................
Total cum. avg. YTD .......................
4
8
36
34
31
3
94
0
0
0
12
7
189
60
20
42
67
0
2
21
21
0
91
10
34
10
174
17
1
784
12
2
19
27
64
93
146
125
35
49
98
25
36
53
44
24
85
6
10
15
32
27
5
84
2
0
0
7
6
165
48
18
33
66
0
2
5
22
0
95
3
22
9
154
14
1
672
7
1
21
31
56
71
119
107
24
39
76
26
28
66
28
25
89
1,710
429
2,139
278
1,425
84
1,649
1,471
364
1,835
235
1,234
80
1,383
12-22-06
/gal
0-2,500
2,501-5,000
5,001-7,500
7,501-10,000
10,001-12,500
12,501-15,000
15,001-17,500
17,501-20,000
20,001-over
Total
45
114
217
436
409
261
120
79
38
1,719
INLAND
LAND
OFFSHORE
33
1,629
57
12-29-06
12-30-05
Percent
Rig Percent
footage* count footage*
52.6
20.2
2.7
2.2
0.3
0.8
7.3
25
89
187
322
351
293
99
59
21
1,446
36
1,360
50
4.0
47.1
19.7
4.3
1.9
6.9
2
12-29-06
12-30-05
1,000 b/d
Total .........................................
5,376
21
836
680
59
7
28
92
1,113
13
49
97
162
104
165
1,288
48
139
73
4,984
1
OGJ estimate. 2Revised.
Source: Oil & Gas Journal.
Data available in OGJ Online Research Center.
US CRUDE PRICES
$/bbl*
Alaska-North Slope 27 .......................................
South Louisiana Sweet ........................................
California-Kern River 13 .....................................
Lost Hills 30 ........................................................
Southwest Wyoming Sweet ................................
East Texas Sweet .................................................
West Texas Sour 34 ...........................................
West Texas Intermediate .....................................
Oklahoma Sweet ..................................................
Texas Upper Gulf Coast ........................................
Michigan Sour ......................................................
Kansas Common ...................................................
North Dakota Sweet ............................................
12-29-06
49.52
56.75
49.35
57.05
58.05
58.28
49.00
57.75
57.75
54.50
50.75
56.75
47.50
12-22-06
62.44
58.12
57.22
58.73
63.45
64.38
63.07
57.14
57.03
60.15
58.46
56.35
57.22
55.09
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Statistics
10 month average
Oct.
Sept.
production
Chg. vs prev. year
2006
2006
2006
2005
Volume
Crude, 1,000 b/d
%
Argentina . . . . . . . . . . . . . . . . . . .
Bolivia . . . . . . . . . . . . . . . . . . . . . .
Brazil . . . . . . . . . . . . . . . . . . . . . . .
Canada . . . . . . . . . . . . . . . . . . . . .
Colombia . . . . . . . . . . . . . . . . . . . .
Ecuador . . . . . . . . . . . . . . . . . . . . .
Mexico . . . . . . . . . . . . . . . . . . . . .
Peru . . . . . . . . . . . . . . . . . . . . . . . .
Trinidad . . . . . . . . . . . . . . . . . . . . .
United States . . . . . . . . . . . . . . . .
Venezuela1 . . . . . . . . . . . . . . . . . . .
Other Latin America . . . . . . . . . . .
Oct.
Sept.
Cum.
2006
2006
2006
Gas, bcf
630
45
1,762
2,593
526
518
3,173
107
145
5,243
2,510
79
17,331
640
45
1,733
2,590
526
530
3,258
118
143
5,188
2,550
79
17,400
637
45
1,711
2,487
530
538
3,293
115
147
5,125
2,576
79
17,285
648
41
1,623
2,314
526
516
3,331
112
148
5,233
2,716
80
17,288
11
4
88
173
4
23
38
2
108
140
1
1.7
10.0
5.4
7.5
0.8
4.4
1.1
2.1
0.2
2.1
5.2
1.3
135.0
40.0
29.1
517.1
17.0
0.3
172.3
6.5
107.0
1,655.0
82.0
7.5
2,769.0
134.0
38.0
29.3
480.9
15.7
0.3
167.6
6.8
103.1
1,616.0
80.0
7.2
2,678.9
1,332.4
391.0
292.1
5,043.1
159.5
3.1
1,615.8
51.2
1,050.1
16,081.0
819.0
73.3
26,911.7
17
353
22
67
106
15
2,380
41
1,537
4
4,542
17
260
22
67
107
16
2,338
42
1,398
4
4,272
17
333
21
70
110
24
2,492
42
1,516
5
4,629
17
380
22
70
115
33
2,705
42
1,686
5
5,075
48
5
9
213
170
445
2.4
12.5
0.7
0.2
4.6
26.2
7.9
0.9
10.1
6.0
8.8
5.0
25.1
3.5
53.7
31.0
300.0
237.8
2.5
237.2
0.2
895.9
4.7
19.9
3.3
45.9
30.0
290.0
219.5
2.4
213.3
0.2
829.3
51.5
284.3
35.0
540.8
321.6
2,555.0
2,501.0
26.0
2,442.7
18.4
8,776.3
670
16
16
1,120
97
9,500
500
45
11,964
660
17
16
1,120
97
9,500
500
45
11,954
617
17
17
1,049
99
9,468
510
45
11,821
422
18
20
987
100
9,167
420
49
11,183
195
1
4
62
1
301
90
4
638
46.2
4.5
17.8
6.3
1.3
3.3
21.4
8.2
5.7
21.0
4.8
9.3
74.0
18.0
1,850.0
400.0
43.9
2,421.0
20.0
4.7
8.7
72.0
17.0
1,790.0
385.0
46.2
2,343.6
227.0
47.4
89.2
712.0
172.0
18,705.0
4,365.0
428.3
24,745.9
1,350
1,350
86
20
240
650
320
230
1,750
2,240
300
65
264
8,866
1,350
1,376
86
20
240
650
320
230
1,750
2,190
290
67
266
8,834
1,349
1,393
88
20
240
671
320
236
1,704
2,224
291
65
270
8,871
1,348
1,200
82
20
240
696
320
233
1,638
2,395
290
72
241
8,775
1
192
6
25
3
66
171
1
6
29
96
0.1
16.0
7.9
3.6
1.3
4.0
7.1
0.3
8.9
12.0
1.1
285.0
2.4
42.0
0.1
0.3
22.0
75.0
6.8
10.2
443.7
277.0
2.0
38.0
0.1
0.3
22.0
72.0
6.8
10.0
428.1
2,727.0
23.2
404.0
0.6
3.0
216.5
702.0
67.4
100.6
4,244.3
170
3,800
1,940
2,510
720
810
8,930
410
2,670
350
22,310
170
3,850
2,050
2,500
730
830
9,010
410
2,640
350
22,540
172
3,883
1,919
2,505
743
824
9,185
427
2,637
347
22,641
174
3,895
1,848
2,414
757
792
9,285
462
2,437
348
22,411
2
12
71
91
14
32
100
35
200
1
230
1.1
0.3
3.8
3.8
1.8
4.0
1.1
7.6
8.2
0.3
9.1
1.0
27.0
265.0
5.3
31.0
58.5
117.0
170.0
15.4
135.0
7.9
832.1
26.0
260.0
5.2
30.0
57.0
115.0
165.0
14.9
130.0
8.8
811.9
261.2
2,698.0
51.8
305.5
581.5
1,149.0
1,774.0
153.7
1,308.0
73.9
8,356.6
Asia-Pacic . . . . . . . . . . . . . . .
TOTAL WORLD . . . . . . . . . . . . .
519
214
3,660
692
860
14
770
10
60
55
190
340
33
7,417
72,429
493
214
3,659
703
870
14
760
13
61
55
209
355
38
7,443
72,444
417
204
3,692
678
899
15
746
15
64
57
211
347
33
7,376
72,623
442
185
3,630
666
945
16
774
15
64
46
182
340
35
7,339
72,070
25
19
62
12
46
28
1
11
29
7
2
37
553
5.7
10.1
1.7
1.8
4.9
1.9
3.6
4.0
0.5
23.5
16.2
1.9
6.8
0.5
0.8
119.0
33.1
172.3
88.0
185.0
8.8
145.0
12.0
113.0
0.5
72.7
15.0
65.5
1,029.8
8,391.5
114.8
36.5
163.7
77.0
180.0
8.5
140.0
12.5
109.5
0.5
70.9
15.0
64.3
993.2
8,084.9
1,142.3
353.8
1,716.0
786.9
1,890.0
93.5
1,399.0
114.2
1,158.2
5.0
713.8
150.0
648.4
10,171.0
83,205.9
OPEC . . . . . . . . . . . . . . . . . . . . . . .
North Sea . . . . . . . . . . . . . . . . . . .
29,370
4,284
29,590
4,011
29,704
4,357
29,712
4,782
8
426
8.9
1,372.3
589.9
1,336.2
539.5
13,640.8
5,991.9
Western Hemisphere . . . . . . .
Austria . . . . . . . . . . . . . . . . . . . . . .
Denmark . . . . . . . . . . . . . . . . . . . .
France . . . . . . . . . . . . . . . . . . . . . .
Germany . . . . . . . . . . . . . . . . . . . .
Italy . . . . . . . . . . . . . . . . . . . . . . . .
Netherlands . . . . . . . . . . . . . . . . .
Norway . . . . . . . . . . . . . . . . . . . . .
Turkey . . . . . . . . . . . . . . . . . . . . . .
United Kingdom . . . . . . . . . . . . . .
Other Western Europe . . . . . . . . .
Western Europe . . . . . . . . . . . .
Azerbaijan . . . . . . . . . . . . . . . . . . .
Croatia . . . . . . . . . . . . . . . . . . . . . .
Hungary . . . . . . . . . . . . . . . . . . . . .
Kazakhstan . . . . . . . . . . . . . . . . . .
Romania . . . . . . . . . . . . . . . . . . . .
Russia . . . . . . . . . . . . . . . . . . . . . .
Other FSU . . . . . . . . . . . . . . . . . . .
Other Eastern Europe . . . . . . . . . .
Eastern Europe and FSU . . . . .
Algeria1 . . . . . . . . . . . . . . . . . . . . .
Angola . . . . . . . . . . . . . . . . . . . . . .
Cameroon . . . . . . . . . . . . . . . . . . .
Congo (former Zaire) . . . . . . . . . . .
Congo (Brazzaville) . . . . . . . . . . . .
Egypt . . . . . . . . . . . . . . . . . . . . . . .
Equatorial Guinea . . . . . . . . . . . . .
Gabon . . . . . . . . . . . . . . . . . . . . . .
Libya1 . . . . . . . . . . . . . . . . . . . . . . .
Nigeria1 . . . . . . . . . . . . . . . . . . . . .
Sudan . . . . . . . . . . . . . . . . . . . . . .
Tunisia . . . . . . . . . . . . . . . . . . . . . .
Other Africa . . . . . . . . . . . . . . . . . .
Africa . . . . . . . . . . . . . . . . . . . . .
Bahrain . . . . . . . . . . . . . . . . . . . . .
Iran1 . . . . . . . . . . . . . . . . . . . . . . . .
Iraq1 . . . . . . . . . . . . . . . . . . . . . . . .
Kuwait1,2 . . . . . . . . . . . . . . . . . . . .
Oman . . . . . . . . . . . . . . . . . . . . . . .
Qatar1 . . . . . . . . . . . . . . . . . . . . . .
Saudi Arabia1,2. . . . . . . . . . . . . . . .
Syria . . . . . . . . . . . . . . . . . . . . . . .
United Arab Emirates1. . . . . . . . . .
Yemen . . . . . . . . . . . . . . . . . . . . . .
Other Middle East . . . . . . . . . . . . .
Middle East . . . . . . . . . . . . . . . .
Australia . . . . . . . . . . . . . . . . . . . .
Brunei . . . . . . . . . . . . . . . . . . . . . .
China . . . . . . . . . . . . . . . . . . . . . . .
India . . . . . . . . . . . . . . . . . . . . . . .
Indonesia1 . . . . . . . . . . . . . . . . . . .
Japan . . . . . . . . . . . . . . . . . . . . . .
Malaysia . . . . . . . . . . . . . . . . . . . .
New Zealand . . . . . . . . . . . . . . . . .
Pakistan . . . . . . . . . . . . . . . . . . . . .
Papua New Guinea . . . . . . . . . . . .
Thailand . . . . . . . . . . . . . . . . . . . .
Vietnam . . . . . . . . . . . . . . . . . . . . .
Other Asia-Pacic . . . . . . . . . . . . .
OPEC member. 2Kuwait and Saudi Arabia production each include half of Neutral Zone. Totals may not add due to rounding. Source: Oil & Gas Journal. Data available in OGJ Online Research Center.
62
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A d v e r t i s i n g
UNDISPLAYED CLASSIFIED: $3.50 per word per issue. 10% discount for three or
more CONSECUTIVE issues. $70.00 minimum charge per insertion. Charge for
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Centered heading, $8.75 extra.
COMPANY LOGO: Available with undisplayed ad for $75.00. Logo will be centered
above copy with a maximum height of 3/8 inch.
NO SPECIAL POSITION AVAILABLE IN CLASSIFIED SECTION.
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BUSINESS OPPORTUNITY
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I am a fan.
Mark Harris
Chevron International
Exploration and Production
Houston, Texas
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Advertising
Sales
Advertisers
Index
Houston
Regional Sales Manager, Marlene Breedlove, 1700
West Loop South, Suite 1000, Houston, TX 77027;
Tel: (713) 963-6293, Fax: (713) 963-6228, E-mail:
marleneb@pennwell.com. Regional Sales Manager,
Charlene Burman; Tel: (713) 963-6274, Fax: (713) 9636228; E-mail: cburman@pennwell.com
www.polyguardproducts.com
PennEnergyJOBS ......................................37, 51
www.PennEnergyJOBS.com
PennWell
Deepwater Opertations .............................. 49
www.deepwateroperations.com
Chevron .......................................................... 21
http://events.unisfair.com/rt/penn
www.subseatiebackforum.com
United Kingdom
Carole Winstanley, ADBIZ MEDIA LTD, 252 Union Street,
Aberdeen, AB10 1TN, Scotland, United Kingdom; Tel:
+44 (0) 1224 791178; Fax: +44 (0) 5601 151590; E-mail:
adbizmedia@btconnect.com.
France/Belgium/Spain/Portugal/Southern
Switzerland/Monaco
Daniel Bernard, 8 allee des Herons, 78400 Chatou, France;
Tel: 33 (0)1 3071 1224, Fax: 33 (0)1 3071 1119; E-mail:
danielb@pennwell.com, France, Belgium, Spain, Portugal,
Southern Switzerland, Monaco.
Germany/Austria/Denmark/Northern
Switzerland/Eastern Europe/Russia
Verlagsburo Sicking, Emmastrasse 44, 45130, Essen,
Germany. Tel: 49 0201 77 98 61, Fax: 49 0201 781 741; E-mail:
wilhelms@pennwell.com. Wilhelm F. Sicking, Germany,
Austria, Denmark, Northern Switzerland, Eastern Europe,
Russia, Former Soviet Union.
Japan
e. x. press Co., Ltd., Hirakawacho TEC Building, 2-1111, Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093, Japan,
Tel: 81 3 3556 1575, Fax: 81 3 3556 1576; E-mail: manami.
konishi@ex-press.jp; Manami Konishi
Brazil
Grupo Expetro/Smartpetro, Att: Jean-Paul Prates and
Bernardo Grunewald, Directors, Ave. Erasmo Braga 22710th
and 11th floors Rio de Janeiro RJ 20024-900 BRAZIL;
Tel: (55-21) 3084 5384, Fax: (55-21) 2533 4593; E-mail:
jpprates@pennwell.com.br and bernardo@pennwell.com.br
Singapore/Australia/Asia-Pacific
Singapore, Australia, Asia Pacific, 19 Tanglin Road #0907, Tanglin Shopping Center, Singapore 247909, Republic
of Singapore; Tel: (65) 6 737-2356, Fax: (65) 6 734-0655;
Michael Yee, E-mail: yfyee@singnet.com.sg
India
Interads Limited, 2, Padmini Enclave, Hauz Khas,
New Delhi-110 016, India; Tel: +91-11-6283018/19, Fax: +9111-6228928; E-mail: rajan@interadsindia.com. Mr. Rajan
Sharma.
Italy
Jean-Pierre Bruel, sas di Jean-Pierre Bruel, Via Trieste
17-22066, Mariano Commense (Co), Italy; Tel: 39-031-51494,
Fax: 39-031-751482; E-mail: medias@pcbrianza.net
This index is provided as a service. The publisher does not assume any liability for errors or omission.
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T h e
E d i t o r s
P e r s p e c t i v e
by Bob Tippee, Editor
www.ogjonline.com
M a r k e t
J o u r n a l
Because of a strong El Nino weather pattern, the National Oceanic & Atmospheric
Administration called for higher-than-normal temperatures in most of the US for the
rest of the winter. Market sentiment has been driven primarily by mild East Coast
weather recently. However, we suggest that the impact is being overdone, given
that heating oil is normally just 6% of US demand at this time of year, and last year
proved to be less affected by weather than is normally assumed, said Paul Horsnell
analysts. The UN resolution was watered down signicantly at the behest of Russia
and China; both have signicant economic ties to Iran.
Raymond James said: From an oil market perspective, this resolution does not
have any direct impact on Tehrans ability to pump crude oil into the international
markets; the sanctions are targeted purely at the countrys ability to acquire materials necessary to develop nuclear technology. However, this stern decision by the
international community highlights the geopolitical risks that continue to haunt the
ever-tightening energy markets. Going forward, threats by Iran to pull out of the
Non-Proliferation Treaty and expel UN nuclear inspectors may further aggravate the
current situation and inate the risk premium in oil prices.
Violence escalated in Nigerias Niger Delta with armed attacks by militants on oil
production facilities. The largest African crude producer has lost anywhere between
200,000-600,000 b/d in hydrocarbon production in the past year, Raymond James
James analysts. The entire political map of Latin America continues to shift towards
left-wing governments with generally antitrade and anti-investment policies.
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Here are some of the outstanding companies that hope you come knocking:
Register Now!
http://events.unisfair.com/rt/penn
V I R T U A L J O B FA I R
www.ogjonline.com
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www.pennenergyjobs.com
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MEASURE
& COMPARE
Challenges:
Water depth: 6,828 ft (2,081 m)
Batch drill and set two casing strings for 15
development wells
4 Drill Phase I with seawater and gel sweeps to set
26-in. protection casing
4 Drill Phase II using the riserless DKD process
to set 20-in. casing
Minimize mud volume in the DKD section
Maximize hole cleaning and ROP (80-100 fph)
}
}
Solution:
Baker Hughes Drilling Fluids division dedicated personnel and facilities
from its Fourchon, Louisiana supply base
Three supply boats and several spot hires transported fluid to the rig
Largest boats capacity was: 15,000 bbl
Results:
w w w. b a k e r h u g h e s . c o m / c a s e f i l e
Baker Atlas
INTEQ
Hughes Christensen
Centrilift
ProductionQuest
Baker Petrolite
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