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Pioneer Natural Resources announced this week new greenhouse-gas (GHG) emissions-reduction targets across its Permian Basin operations. The plan, rolled out in the company’s new sustainability report, calls for a 25% reduction of GHG emissions by 2030 and a 40% reduction in methane emissions by 2030. The Irving, Texas-based shale producer has also committed to flaring less than 1% of its associated gas and aims to eliminate routine flaring by 2030, and possibly as soon as 2025. By 2022, the new flaring limit will apply to the assets Pioneer is acquiring through its purchase of Parsley Energy. Pioneer announced it was buying the smaller Permian player in a deal valued at $4.5 billion in October.
US Job Numbers Up for OFS and Equipment Industry, But Outlook Remains Unclear The increase in OFS and equipment sector jobs over the past 2 months came amid higher oil and gas production. But increases in COVID-19 cases are causing uncertainty about when and how much demand will rise. Texas Regulator To Place New Limits on Allowable Flaring Oil and gas producers in the state are being asked to submit data and economic analysis on why they cannot sell natural gas before they are granted permission to flare it. UAE Has Become World’s Newest Producer of Unconventional Gas The first delivery of shale gas in the UAE marks a major milestone toward its goal of reaching 1 Bcf/D by 2030. It also signals the expansion of hydraulic fracturing in the UAE’s conventional fields.
A British independent bet its future on proving that fractured basement formations could produce large amounts of oil and gas. Based on its first two wells, the proposition that these highly fractured layers of awful-quality reservoir rock can produce billions of barrels of oil is looking very unlikely, but there might be something of value down there. Last April, Hurricane Energy predicted those two development wells could easily produce 17,000 B/D of oil from rock it said held “half a billion barrels of oil.” Now Hurricane’s ambitious plans and its identity as “basement reservoir specialists” are in tatters. The initial wells were productive but much of what was coming out of the lower one—205/21a-7z—was water.
ExxonMobil announced on Monday a capital spending plan that is focused squarely on the company’s highest-potential developments. The company also issued a warning to investors about a major impairment to many of its dry-gas projects. ExxonMobil plans to spend between $16 billion and $19 billion next year and between $20 billion and $25 billion annually up to 2025. These figures represent a considerable reduction from ExxonMobil’s March capital plan that forecast $30 to $35 billion in exploration and development spending. In addition to its marquee developments offshore Guyana and the Permian Basin in Texas and New Mexico, the new capital program will also focus on “targeted exploration” projects in Brazil and the company’s chemicals division, according to a statement from ExxonMobil.
Sinopec recorded China’s highest daily output of shale gas at 20.62 million cubic meters (Mcm) at its Fuling shale-gas field in Chongqing, China, a key gas source for the Sichuan-East gas pipeline. The first major commercial shale-gas project in China, Fuling has continuously broken records for the shortest gasfield drilling cycle while significantly increasing the drilling of high-quality reservoirs covering more than 3 million m, according to Sinopec. Gasfield production construction was also expanded to raise production capacity. The company said the field maintains a daily output of 20 Mcm, producing an estimated 6.7 Bcm per year. Apache filed appraisal plans for its Maka and Sapakara oil discoveries in block 58 offshore Suriname.
In the aftermath of the Deepwater Horizon oil spill, the oil and gas industry, regulators, and other stakeholders recognized the need for increased collaboration and data sharing to augment their ability to better identify safety risks and address them before an accident occurs. The SafeOCS program is one such collaboration between industry and government. It is a voluntary confidential reporting program that collects and analyzes data to advance safety in oil and gas operations on the Outer Continental Shelf (OCS). The US Bureau of Safety and Environmental Enforcement (BSEE) established the program with input from industry and then entered into an agreement with the US Bureau of Transportation Statistics (BTS) to develop, implement, and operate the program. As a principal statistical agency, BTS has considerable data-collection-and-analysis expertise with near-miss reporting systems for other industries and the statutory authority to protect the confidentiality of the reported information and the reporter’s identify. Source data submitted to BTS are not subject to subpoena, legal discovery, or Freedom of Information Act (FOIA) requests.
The United Nations Brundtland Commission defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” In the context of this definition, sustainable water management should encompass current management of water resources as well as its potential effect on the future. Sustainable water management in oil and gas is a journey that will need approaches from many perspectives. The highlighted papers illustrate the different perspectives and accompanying complexities that can advance progression toward more-sustainable water management. The approaches are multifaceted in that they consider technological, environmental, economic, and social needs and responsibility.
Deep Earth Energy Production, or DEEP, says a positive well test from its first geothermal project represents a historic milestone. The Canadian company reports that its Border-5HZ is the deepest horizontal well ever drilled in Saskatchewan and is also the world’s first 90° horizontal fluid production well to be drilled and hydraulically fractured for a geothermal power-generation application. The initial results of the 20-stage stimulation and subsequent modeling “indicate a highly productive well—twice the productivity of an unstimulated well,” the company said in its announcement. DEEP expects that the well will achieve commercial production rates of around 100 liters per second (~26 gal). The field plan is to use six producing wells and four injectors to generate up to 20 MW of power.
Is It Time To Buy Oil Acreage? The Wolfcamp formation in the Midland Basin, which is part of the Permian Basin, has attracted many oil companies because of its stacked potential. Shown here is a structure and thickness map for the formation. A private-equity firm has agreed to put in $900 million to start a company that will buy US oil and gas operations with a focus on finding more oil. The equity investment by Oaktree Capital Management is far below the records set when the industry was looking up, but with acquisitions activity at a crawl, the timing is striking.
The 2020 Presidential Award received by the SPE Bandung Institute of Technology student chapter marks the ninth consecutive award the chapter has received since 2012, with 6 Outstanding Student Chapter Awards and 3 Gold Standard Awards received earlier. Many events are held by the chapter to facilitate members with platforms to better themselves. Two highlight events held in 2020 are “exSPEdition” and “Integrated Petroleum Festival (IPFEST) 2020.” ExSPEdition is a field trip event series with a total of seven visits to oil and gas companies across Indonesia. It is further divided into regular field trips, Freshman on Field, and Big Field Trip.