Although reserves estimates for known accumulations historically have used deterministic calculation procedures, the 1997 SPE/WPC definitions allow either deterministic or probabilistic procedures. Each of these is discussed briefly in the next two sections. Thereafter--except for another section on probabilistic procedures near the end--the chapter will focus on deterministic procedures because they still are more widely used. Both procedures need the same basic data and equations. Deterministic calculations of oil and/or gas initially in place (O/GIP) and reserves are based on best estimates of the true values of pertinent parameters, although it is recognized that there may be considerable uncertainty in such values.
Chemical treatment with demulsifiers is used to counteract the natural surfactants present, and wetting agents or other chemicals sometimes are used to carry the suspended solids into the water layer. The presence of a band of emulsion in centrifuged samples indicates that further chemical treatment might be needed.
The following discussion of emerging drilling technologies will be limited to those technologies now coming into the market, not those, such as rotary steerable and multilateral technologies, that have ready reference on service company Internet websites. Hence, this discussion is not comprehensive, but it is intended to include most of the high-impact technologies that are likely to be commercialized in the next 3 to 5 years with a brief look beyond.
The following discussion of emerging drilling technologies will be limited to those technologies now coming into the market, not those, such as rotary steerable and multilateral technologies, that have ready reference on service company Internet websites. Hence, this discussion is not comprehensive, but it is intended to include most of the high-impact technologies that are likely to be commercialized in the next 3 to 5 years with a brief look beyond. The focus on drilling technology in the United States at the beginning of the 21st century is primarily in response to the fact that its remaining oil and gas resources exist in mature provinces of significantly depleted basins or in difficult drilling environments, such as the Arctic or the deepwater Gulf of Mexico (GOM). Because the United States has led the world in petroleum demand, the environment of depletion and push for further development of these mature basins will provide lessons and technology immediately applicable to the rest of the world as the world resource base continues to mature. All nations have a stake and will benefit from this development of the next redefinition of drilling state of the art. The most basic requirement of drilling technology is that it provide safe, economic access to subsurface geologic formations to evaluate/optimize their production potential or to produce the resource existing there. The operative word is "economic." In high-cost environments, such as the deepwater offshore, technology is needed to maximize efficiency and to minimize time on location. In the onshore arena where reservoir potential is lower, the cost of accessing that potential also has to be reduced with such technologies as casing drilling. Also, with the advent of "unconventional resources" and fracture "sweet spots" as primary exploration targets, technology must provide a "smart drilling" capability to enhance finding these more difficult targets and to optimize access to the target in a manner that maximizes the production.
In 1911, 18-year-old Armais Arutunoff organized the Russian Electrical Dynamo of Arutunoff Co. in Ekaterinoslav, Russia, and invented the first electric motor that would operate in water. During World War I, Arutunoff combined his motor with a drill. It had limited use to drill horizontal holes between trenches so that explosives could be pushed through. In 1916, he redesigned a centrifugal pump to be coupled to his motor for dewatering mines and ships. In 1919, he immigrated to Berlin and changed the name of his company to REDA.
The claim that the world is irresponsible in rapidly consuming irreplaceable resources ignores technical progress, market pressures, and the historical record. For example, the "Club of Rome," with the use of exponential growth assumptions and extrapolations under static technology, predicted serious commodity shortages before 2000, including massive oil shortages and famine. First, the new production technologies are proof that science and knowledge continue to advance and that further advances are anticipated. Second, oil prices will not skyrocket because technologies such as manufacturing synthetic oil from coal are waiting in the wings. Third, the new technologies have been forced to become efficient and profitable, even with unfavorable refining penalties. Fourth, exploration costs for new conventional oil production capacity will continue to rise in all mature basins, whereas technologies such as CHOPS can lower production costs in such basins.
Figure 1.2 shows world oil production predictions. Simply put, conventional oil is running out because new basins are running out. Furthermore, exploitation costs are large in deep, remote basins (deep offshore, Antarctic fringe, Arctic basins). Only larger finds will be developed, and recovery will be less than for "easy" basins.
Remedial cementing requires as much technical, engineering, and operational experience, as primary cementing but is often done when wellbore conditions are unknown or out of control, and when wasted rig time and escalating costs force poor decisions and high risk. Squeeze cementing is a "correction" process that is usually only necessary to correct a problem in the wellbore. Before using a squeeze application, a series of decisions must be made to determine (1) if a problem exists, (2) the magnitude of the problem, (3) if squeeze cementing will correct it, (4) the risk factors present, and (5) if economics will support it. Most squeeze applications are unnecessary because they result from poor primary-cement-job evaluations or job diagnostics. Squeeze cementing is a dehydration process.