Oil price is a determinant factor in many economic equations. The consistent growth of oil demand indicates the importance of petroleum products in the economic growth of both developing and developed countries. The new market conditions after the introduction of the shale oil and the extent of its influence on determining the oil price indicates a requirement for new oil market models that include new parameters. In this paper, based on the system dynamics methodology, we provide an updated model of the supply and demand of the oil market to explain the market trends. Our model provides the causal relations between the major components of the market including the determinants of the supply and demand. We divide the supply into the OPEC, non-OPEC and US producers. Further, we have extracted the supply of Iran, Saudi Arabia, Libya, Venezuela, and Iraq in the OPEC, and Russia and Syria in the non-OPEC categories in order to be able to further detail the effects of specific events that influenced their corresponding productions. We also provide a detailed case study of the major market events after 2010 that have had consequences on the oil market. Finally, we train the model with the 2014 and 2015 data and simulate and validate the model for 2016 to support our model's performance.
Outputs from geological and geophysical applications are the major drivers for upstream prospect generation and field development. The current generation of applications can quickly produce a massive amount of intermediate data based on the iterative and interactive workflows. One major challenge for large organizations, with many disparate software systems and a large user base, is maintaining a clean and optimized data environment. Data management plays a key role in the delivery of accurate and efficient interpretation results to improve the decision making and exploration success. This case study shares the authors’ experience in leading corporate and project-based geoscience data management activities for several industry-leading applications.
The first activity was the data cleaning, standardization, and consolidation of over a 100 repositories of multiuser project-based application databases that had accumulated over 20 years. The objective for each step (data cleaning, standardization, and consolidation) was clearly defined and the processes have been implemented using best technologies. Automatic procedures have been implemented to optimize the master and interpretation data. In addition, this paper addresses the application of knowledge management methodologies, to transform existing geoscience interpretation workflows into a knowledge-based asset management system. We present the business drivers for each activity, challenges faced, and the approach adopted to resolve those challenges.
During the data management activity, many of the project databases need to remain active for ongoing well planning, monitoring, and geosteering, which make data management more challenging. New naming conventions were also established and enforced. These provided a larger than expected benefit to the users, in terms of data accuracy and availability. One sizeable operational database achieved around 55% clean up from projects’ archival and deletion. It it because projects are either not active anymore or merged with other projects. Geophysical interpretation has become an iterative, interactive, and resource intensive process. It generates massive amounts of maps and volume-based attribute data, resulting in significantly increased storage utilization and data complexity. The major challenges were to identify and extract the best available interpretation version, streamline the data flow, and leverage existing corporate knowledge. All challenges were tackled successfully, bringing a huge benefit to the organization. The creation of new processes, awareness, standards enforcement, and automation guided geoscientists toward the best data management practices. Benefits in reducing operational costs and improving productivity have been realized.
Innovative approaches utilized in our activities include knowledge management methodologies, automatic procedures implementation for data management and optimization. In addition, a continuous reporting mechanism was established to assure complete control and monitoring of data growth. This paper also provides a roadmap that can be applied to similar data management activities in the geoscience domain. Data management has been transformed into a continuous process, rather than a one-time task.
This research paper is aimed at explaining how information technology projects are effected by good risk management. Consequently, it can be used as reference for IS managers. It answers our concern of how risk management contributes to IT project success. Obviously, we investigated how project risk management effects IT projects, which is essential in various industrial activities. We looked into some estimates of the effects of risk management in IT projects. Our methodology approach showed how performance evaluation can be utilized to assess the impact of risk management on such projects.
The DCS (distributed control system) alarm system at Gathering Centers of Kuwait Oil Company was not functioning as required. DCS alarm system was generating high no. of alarms which was out of operator's alarm handling capacity. This was highlighted as one of the key contributing factors resulting in process upsets & incidents. A detailed investigation revealed lack of alarm management philosophy during design & operation stage as main cause of this poorly functioning system.
This paper shares field experience of analysis of DCS alarm system and explains main root causes which resulted in such poorly functioning alarm system at oil and gas gathering centers.It provides guidelines to carry out alarrm management exercise for improving DCSalarm system & for developing alarm management philosophy to implement and sustain efficient DCS alarm system.It also shares some of the actual alarm data and their analysis, which supports need of well-developed alarm management philosophy and continuous alarm management exercise for efficient DCS alarm system.
It was observed that majority of problems of alarm flood is contributed by selective alarm tags which generate huge number of alarms under category of frequent alarms, duplicate alarms and chattering alarms. The DCS alarms system improves significantly by resolving these alarms. It was concluded that a well-developed Alarm Management Philosophy and execution of well-defined alarm management approach is essential to ensure proper configuration of alarms starting from project stage and sustain it during operation stage of facility.
The paper provides guideline to develop and implement Alarm Management Philosophy and justifies need for Alarm management philosophy to ensure implementation of efficient DCS alarm system and thereby achieving safe and smooth operation of facility.
Operators continuously strive to improve the efficiency of well intervention activities, as any time spent on interventions is nonproductive time. However, planning and executing an efficient intervention is challenging when downhole conditions or issues are uncertain. The guesswork involved often leads to a trial-and-error process during interventions. Performing diagnostic imaging at the outset of an intervention could break this inefficient cycle, but the techniques commonly used for downhole visualizations, such as video cameras, lead impression blocks and ultrasonic imaging, are not sufficiently reliable. Recently, an X-ray based wireline tool was introduced for providing downhole imaging, regardless of the well fluid. We will present a case study in which this new tool was used to assess the condition of the flapper on a downhole safety valve. The X-ray images showed that the flapper was mobile and verified that an insert downhole safety could potentially be installed. This allowed the operator to eliminate higher-risk and more costly options, and they eventually installed the insert downhole safety valve.
The scope of work for this study is to implement lean management concepts while supervising contractor's hydrotesting activity in a NGL plant construction project and present the outcomes. The obtained results can be utilized as an indication that introduction of lean thinking into day-to-day project management can enhance time management resulting into up to 50 % reduction in initial projected time to complete a specific task. Then, continuous improvement will lead to significant tangible and intangible results.
Applicable lean principals were utilized as methods to achieve targets. The lean method included: Visual management of the 5 Ss, team (PMT, PID, Contractor, and Sub-Contractor) involvement, and
The original proposal by contractor was to put the whole (Flaring) area hydrotesting activity on hold until the arrival of control panels to be shipped from the States. This would have resulted into a minimum of 3 months’ delays. While the turning around of the status and introducing lean thinking and planning, the hydrotesting activities was not postponed and were resumed instantly after root cause analysis and 5 Whys concepts implementation and re-planning, accordingly. The result was; by the time the panels arrived, 75.6 % of the test packages were completed, tested, and approved. Quality control and maintenance of the tested lines were also conducted successfully complying with Company recommended Standards and approved by PID.
It was observed that the performance of the team was significantly improved. Off course, as time passes, we were achieving targets that was originally scheduled for freeze. But it can be mainly attributed to the fact that every member of the team (PMT, PID, Contractor, and Sub-Contractor) was involved. The gravity of listening to suggestions and creating a 2-way communication channel from PMT made all team members take ownership into the process and keen on its success.
It can be concluded that planning and scheduling activities utilizing critical path analysis and PERT is essential as an initial planning step. Then, continuous improvement of the plans and schedules utilizing lean thinking can secure a completed project within budget and on a shorter projected period compared to projected periods estimated by standard scheduling tools alone.
ERD wells are commonly associated with major challenges for installation of casing and liner strings. These wells typically present high torque and drag parameters that jeopardize getting strings to total depth.
In an attempt to optimize production, a major oil company in Angola decided to re-enter the study well in early 2016. A sidetrack was opened in the 9 5/8-in. casing, and drilling continued in the 8 ½-in. hole and penetrated the target zone in the highest location. Then a 7-in. production liner was run.
To reach the target zone, 5,583 ft of 8 ½-in. hole was drilled and deviations varied from 45° to 87°. This trajectory was a challenge for subsequent running of 7-in. liner. Torque and drag (T&D) models showed liner rotation at total depth (TD) was not possible, and a surge model indicated likelihood of mud losses while running the liner.
Liner hanger technologies became a very important phase of well construction, and service companies developed advanced liner hangers to overcome hostile well environments. In this case study, the short time available from the planning to execution phases and the current oil market conditions made it imperative that the right equipment, service, and technology were available in country. To achieve the ideal working parameters and get the liner to bottom, a thorough assessment needed to be performed to ensure risk mitigation.
This paper presents summarizes steps considered during planning for the 7-in. liner run including a detailed engineering analysis that enabled the operator to make the best decisions based on the available resources. The paper will also discuss lessons learned and best practices captured during the job that will be used for subsequent liners in similar wells.
The case study well was planned as a sidetrack from an existing well that had been shut in because of low performance. The main well had been drilled and completed as a single gravel pack in 2007. The objective of the sidetrack was to penetrate the reservoir organized complex in the structurally highest location to access reserves and optimize production. A constrained initial production was estimated at 6035 BFPD.
An operations overview of the complete intervention is as follows: Set a 8 ½-in. whipstock in existing 9 5/8-in. casing at 8,400 ft and mill the window. Drill an 8 ½-in. hole section to 13,923 ft MD / 6,657 ft TVD. Run and cement 7-in. liner. Displace the hole with completion fluid. Perform cement bond logs and hand the well over to completion.
Set a 8 ½-in. whipstock in existing 9 5/8-in. casing at 8,400 ft and mill the window.
Drill an 8 ½-in. hole section to 13,923 ft MD / 6,657 ft TVD.
Run and cement 7-in. liner.
Displace the hole with completion fluid.
Perform cement bond logs and hand the well over to completion.
The 8 ½-in. hole was drilled as shown in Well trajectory for case-study well Geometric features of case-study well
Measured depth at whipstock point 8,400 ft TVD at whipstock point 5,279 ft Deviation at whipstock point 78.25° Length of 8 ½-in. hole 5,583 ft Measured depth at TD of 8 ½-in. hole 13,983 ft TVD at 8 ½-in. hole TD 6,695 ft Maximum deviation in 8 ½-in. open hole 86.9° Maximum dogleg severity in 8 ½-in. open hole 5.21°/100 ft at 8,933 ft MD
Well trajectory for case-study well
Geometric features of case-study well
The operator and the liner hanger service company used proprietary simulation tools during the planning phase to predict possible issues for running the liner. The simulation considered main aspects, such as well trajectory and the influence of the whipstock installed in the 9 5/8-in. casing. All analyses were performed and maximum working parameters were defined and included in the well program. The operator also considered possible limitations that using standard equipment available in country might impose on well life. The final management decision was to proceed with the plan presented.
Abnormal annulus behaviour is an indication of a well integrity problem. Monitoring annulus pressure trends is a method of identifying abnormal behaviour, thus highlighting potential integrity issues.
When a well is confirmed as having an annulus integrity issue one mitigating measure that may be put in place is to increase the pressure monitoring requirements associated with the well for possible escalation. It is recognized that the sooner an integrity issue is spotted the more opportunity there is to respond in an adequate manner by putting mitigating measures in place. For this reason the review of wells that do not have known integrity issues is equally important as any deviation from a normal or expected pressure trend may indicate the onset of an issue that could otherwise go unnoticed for some time.
Therefore systematically analyzing all annulus pressures from the entire well stock is a powerful tool in the well integrity management toolbox. Carrying out the generation of annulus pressure plots for performing these analyses can be a laborious and time-consuming task, especially when the well stock contains more than say 50 or 100 wells. Therefore to carry out systematic reviews of all wells can a challenge.
To aid in overcoming this challenge a tool was developed to automate the generation of annulus pressure trends, either by selected well or by selected asset. For each well a set of three plots is generated as standard. Each plot has a time axis and a pressure / temperature axis with scales that can easily be modified to zoom in for a detailed picture or to zoom out to get a good overview.
Implementation of the tool has resulted in an increased surveillance of the annulus pressure trends. Depending on the asset, weekly or even daily reviews of all wells are now done. As a result the understanding of the integrity status of the entire well stock has increased considerably. New well integrity issues that result in a change in annulus behaviour are now detected much earlier than before. It has also resulted in the discovery of some integrity anomalies that were previously not recognized as such.
Gangway equipped: offshore support vessels, intervention vessels, construction vessels, and other monohull vessels, capable of providing gangway access to offshore facilities in exposed sea areas has great potential. It is playing an evolving important role in making new marginal yield field development economical, reducing exposure to risk, and extending the life of the existing oil and gas infrastructure. Otherwise known as Walk to Work (W2W), this marine manning approach for offshore facilities can be used on a regular, fixed term, ad-hoc or exceptional circumstance basis. It is capable of providing significant benefits over existing provisions including: improved safety, increased workforce productivity, greater manning flexibility, and reduced lifecycle costs. The W2W vessel can range from relatively small, fast workboats, to large semi-submersible'flotels' stationed alongside fixed platforms. Within this range, it is the mono-hull vessel where there is the greatest opportunity for the oil and gas industry to realise significant (currently unexploited) gain. Depending on the capability of the chosen vessel, a W2W solution may offer: gangway transfers, hotel, hospital, helicopter, rescue and recovery, subsea and splash zone inspection, cargo, crane, fabrication and other facilities.
Within Oil and Gas service companies, there is tension between developing medium to long-term capability and delivering the service clients demand. Balancing these two requirements is a continual challenge. Both employers and employees recognise a constant need to develop their skills and knowledge base, and an important requirement of an employer is to be astutely aware of their organisation's talent requirements. Employers must identify and acquire talent through recruitment or retraining, and once acquired, employees must be trained and developed to meet the specific business demands for the present and the future. The need to ensure the effectiveness and application of the knowledge transfer process is more important than ever, and has to be done by measuring the skills and knowledge of the individual through a structured competence programme. There are practical challenges of embedding a competency process within an international organisation and these will be explored in this paper.
In the past, the oil and gas industry placed a high premium on experience, which is by definition a reflection of time served. The rapidly changing needs of clients necessitate the acceleration of learning and development activity in the workplace, as the supply of experienced individuals does not always meet the demand. Therefore employers are required to obtain talent and accelerate the knowledge and skills of existing employees, ensuring that talent has been converted into a capability that adds value to the organisation and fulfils client needs by ensuring delivery of excellent service quality. Traditional competency measurement of skill and knowledge has been paper-based, and whilst effective, has proven to be both labour and time intensive when performed by assessors. An alternative approach is electronic competence measurement deployed via a learning management system that allows for electronic knowledge and skills assessment, reducing administration burden and the need for assessor intervention through the automatic recording of completions. If not skillfully managed the binary nature of this approach can limit the integrity and robustness of the system so it is imperative to ensure that additional measures are introduced to maintain and indeed enhance the assurance of the individual's competency.
This paper will discuss the cultural, geographical and technological challenges encountered and how they were resolved during the development of a global competency-based system, in an international service company. The paper will propose a | number of innovative methods to address the issues encountered when incorporating a global electronic competency system, whilst maintaining its on-going integrity.