|Theme||Visible||Selectable||Appearance||Zoom Range (now: 0)|
In addition to the well-recognized elements of digital transformation such as real-time monitoring, remote intelligence, and extraction of insights from data, there is a need to evolve the industry hardware through application of enhanced edge computing. Unlike shale, deepwater plays—which are highly front-loaded investments with long project cycles—will be least affected by the current round of severe investment reductions. Large offshore plays in safer regions have become essential elements of the core business of large oil and gas players. In 2004, US oil production was in decline, Facebook did not exist, and attitudes toward climate change were in flux. Despite the global downturn, the long-term transition to net zero presents a major opportunity to create new multibillion industries based around the North Sea. Cross-sector collaboration and major state/private sector intervention, together with strong leadership, will be key.
In the complete paper, the authors revisit fundamental concepts of reservoir simulation in unconventional reservoirs and summarize several examples that form part of an archive of lessons learned. Proper lateral and vertical well spacing is critical for efficient development of unconventional reservoirs. Much research has focused on lateral well spacing but little on vertical spacing, which is challenging for stacked-bench plays such as the Permian Basin. Knowing which horizon crude oil flows from and in what proportions has been a major challenge for shale producers. Increasingly, they are turning to new technology to find the answer.
A Midland Basin case study on estimating production, drainage volume, and interference from multiple stacked wells. Openhole multistage (OHMS) systems are more cost-effective than the cemented casing plug-and-perf (CCPP) techniques for increasing production and reducing development costs. Understanding how much rock is being stimulated and propped is critical for unconventional producers. New imaging methods using electromagnetic energy or acoustic microemitters could represent a milestone in understanding what is left behind after fracturing. The integration of microseismic data with 3D seismic attributes, and well log and completions data is used to understand geomechanical rock properties.
SPE has always weathered the ups and downs of serving a cyclical industry by adapting as necessary to continue providing our members with high-quality content in JPT and across our wide variety of offerings such as events, webinars, training courses, and other member programs. For the past 6 months, you have read, watched, and heard about adaptation in personal lives and businesses and many of you have experienced it firsthand to some degree—ranging from minor to life-changing events. The calls for change and transition in the industry are ubiquitous and emanating from within and outside of the industry. While oil- and gas-related companies slash budgets and staff and operators pull back from production and exploration, the tax coffers of US local and state governments are shrinking fast and with hard repercussions. Pre-COVID-19 forecasts were blown out of the water and nearly made moot quickly in the first quarter of this year.
Schlumberger is getting rid of its struggling OneStim business unit 2 years after an acquisition that doubled its size. It will get 37% of the shares of Liberty Oilfield Services, which said it will be the second-largest player in that sector. The new geothermal project development company will offer expertise in subsurface and drilling, project development, and risk mitigation. A lot about the blowout preventers used for offshore drilling has changed since Macondo in 2010, but the essentials remain. This evolution serves as a case study on why some oilfield technology is hard to change.
The latest updates on the North American shale sector’s efforts to consolidate and restructure. The proposed restructuring plan aims to eliminate about $74 million of the company’s debt. In the region’s second bankruptcy of the month all of the operator’s assets will be sold to a private equity energy group, pending court approval. The Gulf of Mexico E&P exited its first bankruptcy quickly with a strategy that included the acquisition of Noble Energy’s GOM assets, which increased its production volumes 25% when the WTI approached $80/bbl. Fieldwood’s financial woes in today’s economics may be tougher to overcome.
The latest updates on the North American shale sector’s efforts to consolidate and restructure. Chevron strengthens its North American position with assets in the Permian, DJ, and Eagle Ford basins and offshore in Israel and West Africa. The move to combine forces comes amid the fastest contraction in drilling activity the US shale sector has ever seen while Gyrodata will retain its international business. The provider of subscription-based analytics services for the North American oil and gas sector continues its streak of purchasing data-focused firms. There is a new, big independent in the UK North Sea, Delek Group.
The latest updates on the North American shale sector’s efforts to consolidate and restructure. The development marks the second-largest shale producer to file for Chapter 11 since the onset of the COVID-19 pandemic that sent crude prices reeling. A new report from the IEA forecasts the global oil and gas industry will suffer a $1-trillion loss in revenue as a global pandemic saps demand and crushes prices. It might also set the stage for a price swing in the next few years. What will the landscape of this industry look like when the dust of the current price crash settles?
Enterprise Products Partners publicly acknowledged the deep slump in pipeline demand out of the Permian Basin by canceling a project at a time when most producers have been quietly postponing US projects. Based on the early results from mass shut-ins of shale wells, it did not harm long-term production and it paid a short-term dividend with more oil flowing in the days after restarting. The forces of low oil prices and new efficiency trends are converging to remake the US pressure-pumping business into one that can complete more wells with less horsepower than ever. However, that might also mean service provider margins remain low for much of this new decade. As operators feel the pinch of low oil prices, so, too, do their service providers.
Enterprise Products Partners publicly acknowledged the deep slump in pipeline demand out of the Permian Basin by canceling a project at a time when most producers have been quietly postponing US projects. The good news is 95% of the oil companies in Texas are expected to survive 2020, which means there is a lot of bad news to endure. Four recent deepwater offshore discoveries show exploration is not dead, it is just concentrated offshore. Oil exploration and production jobs globally are at about the level they were after deep cuts following the 2014 crash. Now companies need to find more to cut.