Kemp: The Real Shale Revolution
By now everyone knows the shale revolution was made possible by the combination of horizontal drilling and hydraulic fracturing. But although fracking has captured the popular imagination, and is often used as a synonym for the whole phenomenon, horizontal drilling was actually the more recent and important breakthrough. Mastery of horizontal drilling around 1990, originally for oil rather than gas exploration, was the decisive innovation that lit the long fuse for the shale revolution that erupted 15 years later.
Russian Rig Demand Changes Direction -Douglas Westwood
In 2015, Russian onshore drilling bucked global activity trends and reached record highs. Depreciation of the rouble cushioned the Russian oil industry, incentivizing operators to boost activity and pay for services in roubles while gaining dollars on international markets. Last year, the global number of onshore wells drilled decreased 31%, yet the Russian market – notable for its comparative resilience – experienced year–on–year growth of 6%. Unfortunately, 2016 is not shaping up to be a bumper year.
Argentina Cuts Shale Drilling Costs
Argentina needs $200 billion in investment to develop its vast but barely tapped shale fields, but no joint ventures were expected soon because of low oil prices and uncertainty ahead of a presidential election, state oil company YPF said on Thursday. YPF, nationalized in 2013, is improving drilling efficiency and developing its Vaca Muerta shale formation in Patagonia so that international companies will invest once prices recover, Chief Financial Officer Daniel Gonzalez said in a conference call with investors. "I would not expect any significant joint ventures to be announced soon," Gonzalez said.
EIA: U.S. reserves up 4.5 bln barrels on shale
Proven U.S. oil and condensate reserves jumped 15.4 percent, or 4.5 billion barrels, in 2012 thanks to shale oil plays such as the Eagle Ford in Texas and the Bakken in North Dakota, the Energy Information Administration said on Thursday. Reserves totaled 33 billion barrels, having increased throughout 2012 by the largest amount since 1970. Oil and gas production in the world's largest oil consumer is booming thanks to shale oil and gas which is recovered from tight rocks by drilling long horizontal wells which are then hydraulically fractured, or "fracked". Reporting by Jonathan Leff
Rosneft, Statoil Start Well Testing at North-Komsomolskoye Field
Rosneft and Statoil commenced testing of two production wells of highly viscous oil of the PK1 layer of the North-Komsomolskoye field. The companies are implementing pilot operation of the horizontal wells constructed using best practices related to inflow control and consolidation of entrained solids. Average starting flowrate amounts to 75 t per day, whilst oil production potential is being estimated over 100 t per day for one well. Such results demonstrate strong synergy effect of the experience and expertise of Rosneft and Statoil.
YPF Says Technology Lowering Its Shale Costs
Longer horizontal wells and technology improvements will help Argentine state-run oil company YPF SA lower costs at its most productive shale field, but better infrastructure is still needed in the remote Vaca Muerta play, an executive said. The breakeven price at the Loma Campana field is $43 per barrel and falling while development costs are $12.90 per barrel and expected to fall to $10 next year, said Pablo Bizzotto, executive manager at YPF's unconventional resources unit. "Ten dollars is world-class compared with the Permian" shale field in Texas…
Dana Gas Starts Drilling in Egypt
Dana Gas, the Middle East’s leading regional private sector natural gas company has commenced drilling the Balsam-2 development well in the Balsam Development lease onshore Nile delta. The Balsam-2 well is being drilled with the 2000 HP Egyptian Drilling Company’s Rig #48 and targets the Qawasim formation at a depth of 3200 m. A slanted and fully cored pilot hole will be drilled through the Qawasim reservoir and will be followed by the drilling of a 700 m horizontal section. The well will be the first horizontal well drilled by Dana Gas Egypt…
Argentina's YPF Will Cut Capital Expenditure in 2016
Argentina's state-controlled oil company YPF will cut its capital expenditure in 2016 to mitigate the impact of the global oil price rout, its chief executive said on Friday after the firm announced a fourth quarter loss. "We do not see a meaningful production growth this year, we will be cutting capex," Chief Executive Officer Miguel Galuccio told an investor conference call. He did not immediately give further details but said some working rigs had already been put into standby mode.
Yuganskneftegaz Stimulates Construction of Wells at Priobskoye
Rosneft subsidiary Yuganskneftegaz officially opened two new oil and gas production units at the Priobskoye field, oil and gas production unit–22 and oil and gas production unit–23. The creation of new production units in Yuganskneftegaz is caused by intensive commissioning of producing wells after drilling, construction of multiple well platforms and infrastructure facilities. It is planned to complete 535 new wells at the Priobskoye Field during 2014, which will increase oil output by over 100 thousand tons. Production gain is provided not only by increased number of producing wells.
Ziebel to Provide DFO Intervention Services for ConocoPhillips
Ziebel AS, a Stavanger-based provider of specialist well intervention services for the oil and gas industry, announced that it has reached an agreement with ConocoPhillips to provide distributed fiber optic (DFO) intervention services in the continental United States. Ziebel will offer its DFO intervention services beginning in the first quarter of 2015 from its base in Houston, Texas. Ziebel will employ a purpose-built, trailer-mounted Z-System, which uses fiber optic composite rod technology to access and visualize wellbores in real-time.
DW: Frac Truck Boneyards
In the desert of New Mexico, just forty miles from producing wells in Artesia, lies an aircraft boneyard filled with the remains of once great aeroplanes. Like these planes, nearly 4,000 frac trucks are sitting idle throughout the United States as the demand for horsepower (HP) has fallen as quickly as WTI over the past year. Could there be potential for these trucks to be utilized again, or will frac trucks join aeroplanes in boneyards across Texas and North Dakota? From 2011-2014 frac pump manufacturers were in a race to see how fast horsepower could be added to the United States’ frac fleet.
Troll Oil Celebrates 20 Years
This week it is 20 years since the start of oil production from the Troll field. 1.56 billion barrels have been produced so far and NOK 460 billion ($53.7 billion) in income realized. “Troll oil is the impossible made possible. Only a few believed in extracting the thin oil zone at Troll, and through a burning desire to make it happen, determination and innovation, Troll oil became reality,” says Øivind Dahl-Stamnes, head of Troll production. Determination and innovation in reservoir technology…
Rosneft Production Up 27% in 7 Months
Rosneft increased technical drilling volumes at the Company’s production assets by 27% in 7 months of 2015. Based on the January through July 2015 results the overall drilling progress accounted to 4.585 mln m, whilst during the same period of 2014 the figure was 3.605 mln m. Efficient technical drilling increase is a key priority for Rosneft’s upstream business dimension, which allows cost-efficient maintaining production at brownfields, and increasing production at greenfields. Key factors…
Recent Drilling has Lowered Costs, Increased Performance
The profitability of oil and natural gas development activity depends both on the prices realized by producers and the cost and productivity of newly developed wells. Overall trends in well development costs are generally less transparent than those in price and productivity, which are readily observable in the markets or through analyses of well productivity trends such as EIA's monthly Drilling Productivity Report. To better understand the costs of upstream (or, wellhead) drilling and production activity, the U.S. Energy Information Administration (EIA) commissioned IHS Global Inc.
Schlumberger Debuts GeoSphere
Schlumberger introduced the GeoSphere reservoir mapping-while-drilling service. The new technology reveals features in subsurface beddings and fluid contacts at the reservoir scale to optimize well landing operations, steering capabilities and mapping of multiple boundaries using new deep-directional resistivity measurements enabled by proprietary real-time interpretation techniques. “With GeoSphere technology, Schlumberger is introducing the first-ever reservoir mapping-while-drilling…
Statoil to Step Up Offshore Norway Exploration
Norway's Statoil will ramp up its search for oil and gas deposits on the Norwegian continental shelf next year, the company said on Friday. Oil companies are stepping up efforts to find more oil and gas offshore after cutting exploration budgets following the oil price drop since 2014, meaning more work for owners of drilling rigs, such as Transocean or Seadrill. Majority-state owned Statoil is emerging from the downturn as one of the most active offshore explorers. "We are looking at drilling 25 to 30 wells in Norway in 2018.
Cairn India's 1Q Results for Period ended 30th June, 2014
Cairn India Limited (CIL), one of the fastest growing energy companies in the world, today announces its quarterly financial results for the period ending 30th June, 2014. Global Energy Rankings. Mr. Sudhir Mathur, Interim CEO, Cairn India said,“In line with our vision to contribute to the nation’s energy security, we are confident of not only achieving the stated exploration target of 3bn barrels of hydrocarbons in-place, ahead of schedule, but also of adding another 3 bn barrel to our un-risked prospect inventory.
Conoco Exporting Shale Drilling Know-How
ConocoPhillips, the largest independent oil company, is using the knowledge it gained drilling in Texas' Eagle Ford rocks to fuel growth in less-developed shale formations in North American and even Poland. "The value associated with that learning curve has been pretty tremendous," Conoco Chief Executive Ryan Lance told the company's annual analyst meeting. Conoco and many other companies are spending ever higher amounts to coax more profitable and lower-risk crude oil and natural gas liquids from shale and other rocks in North America.
U.S. Output Slide Looms as Shale Hits 'Wall'
Stagnating rig productivity shows U.S. shale oil producers are running out of tricks to pump more with less in the face of crashing prices and points to a slide in output that should help rebalance global markets. Over the 16 months of the crude price rout, production from new wells drilled by each rig has risen about 30 percent as companies refined their techniques, idled slower rigs and shifted crews and high-speed rigs to "sweet spots" with the most oil. Such "high-grading" helped shale oil firms push U.S.
Halliburton Signals Better Demand for Fracking Equipment
Halliburton Co indicated that demand for its fracking equipment was returning, despite the fewer number of rigs at work, as high-intensity shale drilling soaked up all the available capacity in the market. Halliburton is the world's largest provider of equipment used in hydraulic fracturing or fracking - the process of pumping water and chemicals, known as proppants, into shale rocks to extract oil and gas. U.S. shale oil producers - Halliburton's customers - are now drilling longer horizontal wells with multiple fracking stages, and deploying more horsepower and proppants to cover larger areas.