Researchers from the Federal Reserve Bank of Dallas quantified the economic impact of the US shale revolution for the first half of this decade. Production from the Hibernia platform was shut down again on 17 August after its second oil spill in a month, while Husky Energy began to ramp up output from the White Rose field following the largest-ever spill off Canada’s easternmost province. Anchored by the Khaleesi-Mormont and Samurai fields, the King’s Quay FPS will receive and process up to 80,000 B/D of crude oil. Despite reports to the contrary, Permian well productivity remains healthy, with average new production per well in the basin matching all-time highs, Rystad says. Researchers mapped 251 faults in the North Texas home of the Barnett Shale, the birthplace of the shale revolution, finding that wastewater injection there “significantly increases the likelihood for faults to slip.”
The discovery marks London-based Tullow’s first operated contribution to a long list of discoveries since 2015 in the emerging petroleum province. The large independent put together a team of data scientists, software developers, and petrotechnical staff to create a forward-looking vision for how to use digital technology to solve problems. Leaders from two large US onshore rig contractors said their expectations that the rig-count slide would hit a second-quarter bottom were off and are now refraining from making new predictions as to when it will end. The Italian operator reported positive appraisal and exploration results from wells drilled some 10,000 km apart. The green light for Santos Energy’s drilling program in the McArthur Basin comes after a moratorium on hydraulic fracturing in the Northern Territory was lifted in 2018.
Africa (Sub-Sahara) Equatorial Guinea's Ministry of Mines and Hydrocarbons has notified Ophir Energy that it will not gain an extension for the offshore Block R license. The block contains the deepwater Fortuna gas discovery. Ophir had been seeking to develop the gas using a Golar-converted floating liquefied-natural-gas (LNG) vessel, but failed to secure sufficient financial backing for the project. Front-end engineering design had begun in July 2015. Targeted production was approximately 330 MMcf/D, with a plateau of 30 years. Located approximately 140 km west of Bioko Island, the Fortuna project was to see development of six commercial discoveries in a phased manner.
Gas is flowing in the second phase of the West Nile Delta development offshore Egypt, operator BP reported this week. Production, currently at around 400 MMcf/D, is expected to reach 700 MMcf/D at peak. Developed as a long-distance deepwater tieback to an onshore plant, the second phase includes eight wells producing from the Giza and Fayoum fields. The West Nile Delta project as a whole consists of five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concessions, 65–85 km off Alexandria. Phase 1 of the project, launched last year, consists of gas production from the Taurus and Libra fields.
BHGE is developing an analytics and machine-learning approach that offers descriptive and predictive insights on frac hits, with the aim of eventually offering a real-time monitoring capability to be deployed during frac jobs. Earlier this year in Aberdeen many of the oil and gas industry’s innovation champions met to discuss the developments that are driving the digital transformations within operators and service providers alike. The shift toward lower prices in the industry has resulted in the necessity for more wells to be drilled at lower cost. Numerous other industries have shown that they are able to constantly reduce cost per unit.
Producers in the recently opened Merge play of Oklahoma's Anadarko Basin are sitting atop a resource that rivals some of the world's major gas fields and largest new discoveries, Geology CEO Greg Augsburger of Citizen Energy told the SPE Gulf Coast Section Business Development Group recently. Merge lies between the prolific STACK (Sooner Trend, Anadarko, and Canadian and Kingfisher [counties]) and SCOOP (South Central Oklahoma Oil Province) plays, effectively tying them together. Privately funded Citizen Energy, formed in 2012, drilled the Merge discovery well in September 2015 and 18 delineation wells before significant competitor interest emerged. The discovery, made by the Governor James B. Edwards well in the Sycamore formation, was Citizen's first company well. Augsburger stressed the important role that Anadarko Basin geology has played in Oklahoma oil and gas development from the earliest activity in the Cherokee Platform of eastern Oklahoma during the 1890s.
Despite the struggles brought on by the oil price downturn, the industry still continues to invest significant resources into exploration, and in an online presentation ("Exploration: The Ingredients for Future Success") hosted by Halliburton, Mike Simmons discussed how competition can drive exploration and help companies struggling to replace their reserves. Simmons is a Halliburton Technology Fellow for Geosciences. Simmons said that reserves replacement is a critical element to any oil company's thinking, but rarely do companies reach the desired level of 100% or more. While some companies among the supermajors have achieved performance above 100%, many companies run below it, meaning that every barrel of oil produced is only being replaced with less than a barrel of newly discovered oil. As a whole, Simmons said the industry is running at approximately 80% reserves replacement as an average using conventional and unconventional reservoirs, but that average drops to around 20% with conventionals only.
The Zohr Field offshore Egypt is now flowing at more 2 Bcf/D, or 365,000 BOE/D, less than a year after it started production. The benchmark comes as operator Eni solidifies concession agreements and ramps up exploration and development in the North African country. The Italian multinational firm has stared up the project's fifth production unit, T4, which consists of eight production wells and a 218-km, 30-in. OD pipeline commissioned last month. Production is expected to plateau at more than 2.7 Bcf/D in 2019.
Eni started gas production from Zohr Field in December 2017. Output is expected to increase beyond 2.7 BCF/D in 2019. The Zohr Field offshore Egypt is now flowing at more 2 Bcf/D, or 365,000 BOE/D, less than a year after it started production. The benchmark comes as operator Eni solidifies concession agreements and ramps up exploration and development in the North African country. The Italian multinational firm has stared up the project’s fifth production unit, T4, which consists of eight production wells and a 218-km, 30-in.