Working and Study Groups of WOC1(Themes and key findirgs)

World natural gas production per year (BCM), BP data.

Working Group:Basic activities in exploration and production

Study topics (chapters)

Study Groups:1.1 Cost - effectiveness increase in exploration and production

1.2 Future technologies trends in exploration and production “The development of sophisticated teletransmission sys-tems and their interconnection to the Web network are open-ing new horizons to field operations management through real-time data acquisition, processing and dispatching to re-mote locations”.

“Technology has pushed boundaries and made it possible to recover new reserves under much more severe conditions than before. This is a major contribution to cost efficiency improvement”.

“It would be proper for IGU to arrange a special structure on standardization of natural gas terminology using internationally”.

Basic Activities in Exploration and Production of Gases

Basic Activities in Exploration and Production of Gases

Basic terminology in exploration and production.Unconventional gas resources. Manufactured gases. Greenhouse gases problem in gas industry upstream sector. Production statistics and global production cost trend.

Basic Activities Group Suggestions and Recommendations:It would be proper for IGU to establish a special structure on standardization of natural gas terminology using internationally.Natural gas hydrates are the most important strategic issue for future natural gas industry development in exploration and production area. It would be proper to arrange special reports on this problem progress at each World Gas Conference.Manufactured gases are generated for certain use. Probably, manufactured gases should be discussed in the Committee “Natural gas utilization”. May be the title of this committee could be re-named as “Natural and manufactured gases utilization”.Current structure of Study groups arrangement in the WOC 1: “Basic Activities” Group shortly observing the most important issues and trends in the exploration and production and 2 Study groups on separate important problems looks attractive for structure arrangement in all WOCs for future.

1.2.

3.

4.

Basic terminology and classifications

Research and Production of Unconventional Gas Sources in Different Countries- Members of WOC1

Manufactured gases:The most considerable gasification projects

Greenhouse gases problem:Global warming potential and problems related to the different CO2 sequestration techniques

Global natural gas production cost trend by year 2030 (Production cost can double by year 2030 due to resource base structure change)

Pro

du

ctio

n c

ost

(U

SD

/100

0 S

CM

) 504540353025201510

50

years2000 2005 2010 2015 2020 2025 2030

U.K.

R&DRussia

Pakistan

Japan

CzechRepublic

CoalbedMethane

Exploration

Prod.

Prod.

Prod.

Dissolved&DispersedGas

Prod.

Research

NaturalGasHydrate

R&D

No Plan

Gas ofDenseReservoir

R&D

Prod.

Gas ofDeepReservoir

LimitedProd.

Prod.

Biogas

Prod.

LandfillGas

Prod.

PermafrostGas

R&D

Long termbehaviourLegislation

High volumes20-500400-10000

Aquifers

LegislationDecommissioning

EORTechnology

-Sites

45920DepletedO&G

reservoirs

Low volumeECBMR(Methanerecovery)

>1>15CoalEnvironmentTime Scale>50>1000Oceans

% ofemissions

to 2050

Gt CO2

DisadvantagesAdvantagesGlobal CapacityStorageOption

Gas turbinePowerGeneratingcapacity, etc.

Project

TexacoEl Dorado

ShellPernis

API Energia

ISAB Energy

SARLUX

NissekiMitsubishiRefinery

40MW

115MWHydrogenproduction

250MW

500MW

550MWHydrogenproduction

430MW

Fuel

Oil coke

Petroleumresidue oilPetroleumresidue oil

Petroleumresidue oil

Petroleumresidue oil

GE6B*1

GE6B*2

ABB13E2*1SiemensV94.2*2

GE9E*3

MitsubishiHeavyIndustriesM701F*1

Start ofoperation

1996

1997

1999

1999

2000

2003

Petroleumresidue oil

WOC 1 Exploration, Production and Treatment of GasesWOC 1 Exploration, Production and Treatment of GasesWorking Group

Cost efficiency increase within E&PCost efficiency increase within E&PStudy Group 1.1

The oil and gas industry have seen dramatic changes over the last 5-10 years in terms of liberalization, consequences of low prices, improvement driven by harder competition and technology improvement. The effects have been significant cost improvements, - resulting also in major development of reserves earlier considered as marginal.

Example of cost efficiency improvement trend :Norway

Example of technology boundary push

Summary

Unit facility capital capacity cost trends in Norway-by fields

1. Cost efficiency increase

3. Performance culture and management factors

4. Key opportunities along the value chain

5. Cases

6. Main learning

2. Technology factors

New material in flow lines. 13 % chrome steel was selected and installed and new welding technology was required.Fluids are processed onboard floating production units. New development of riser technology.

High pressure and high temperature qualification of subsea wellhead equipment and procedures for marine installations.New ways of hydrate control, marine bundles, insulated pipe with chemical injection, electrical heating.

Åsgard hydrate control solutions

Best practice search and implementation through active benchmarkingCareful selection of key performance indicatorsPerformance reviewed extensivelyActive loss management practiceProductivity of money spentThrive on explicit reconfiguration eventsAwareness of barriers to improvement

Examples of linked and cascaded key performance indicators

Reservoir mapping and monitoringProduction drillingWell workData Management and predictionsMaintenanceEnergy efficiency

1. The gas reservoir Suchohrad – Gajary in the Slovak Republic

A case example of cost efficiency in exploration and production, including subsequent conversion intoan underground gas storage facility. There are 50 years of history.

Utilization of reservoir potential influenced by:geological complexityuse of gas in the regimepricedomestic resource availabilitytransport systemstechnology modernization

2. Sleipner in Norway

Main effort areas:

The drivers for change are globalInformation and communication technology is a strong improvement factor.Many technology boundaries have been pushed over the last 5 yearsCost efficiency improvement is all about people, mindset and managementCost efficiency improvement is a continuous process, from time to time step changes are necessarySafety performance and cost efficiency improvement may walk hand in hand, -and are in no long-term conflict with each otherInitiatives must be priorized and need time to provide resultsSignificant cost efficiency improvements have been seen over the last 5 yearsAlthough fields are different, - it is possible to improve operational performance by learning from any other fieldSelection of key performance indicators is critical

Energy efficiency during designShare utilitiesIncreased Sleipner East recovery by use of gas from Sleipner WestUndertake Sleipner West operations with limited personal increaseFine-tune facilities during operation to save further energyOptimize plant throughput to accelerate productionFurther refine maintenance practice based on criticalityImproved material flowImproved logistics

Study Group 1.2 Future Technology Trends in Exploration and ProductionFuture Technology Trends in Exploration and ProductionThe upstream sector is based on a wide range of technologies covering the numerous and diversified activities of exploration, production and treatment operations of natural gas.As these operations move to more and more hostile environments, better and more efficient technologies will be needed to handle increasingly complex problems that will be encountered with deeper, tighter, higher P and T, deep sea, stranded gas reservoirs.The purpose of this report is to present some of the latest advances in the fields of geology, seismic, drilling, completion, logging, reservoir engineering, improved production, enhanced recovery, processing and surface facilities engineering and to provide some insight about the trends that will shape them in the future.

Geology and seismics Drilling Completion

Casing drilling system

Marginal and Depleted Fields

Down Hole Water Separation and Injection Tools

Communicator Well Projects for Cross-Flow Between Old and New Reservoirs

Comparison of Logging-While-Drilling (LWD) GeoVISION resistivity image (left) with wireline FMI image (right). Although the LWD image resolution is considerably less than its wireline equivalent, the primary geological features are readily apparent.

Logging technology

Reservoir Engineering

Gas processing

Engineering & Surface Facilities

Supersonic separator basic concept

CONCLUSIONCONCLUSIONA major trend that will keep expanding in the future is a multidisciplinary approach integrating several interelated technologies that will be used in synergy to achieve a problem solving capacity and speed far beyond that of individual technologies used separately. An example of such an approach could be the integration of intelligent wells, reservoir and surface facilities simulation models, 4D seismic, real-time data acquisition and teletransmission systems.

Reserves EvaluationTight gas reservoirsWeak water driveSimulationStreamline simulation 3DParallel Reservoir Simulators for Large-Scale Reservoir SimulationCharacterizatio

Supersonic SeparatorPlant Design Management System (PDMS)Remote control (Choke valves)Electronic Documentation Management System (EDMS )

Conventional Gas ProcessingGas DryingRecovery of Natural Gas LiquidsRemoval of sulphur - containing compounds

Removal of CO2Unconventional Gas ProcessingGas-to-Liquid-ProcessesNitrogen RouteGas-to-Olefin-Processes

Water controlStimulation wellsEnhanced Gas Recovery

Open hole loggingCased hole loggingLogging While DrillingEquipment Software

Intelligent WellsMultilateral Completion TechnologyExpandable systemsThe need of a new approach in completion design

GeosteeringExpandable tubularsCasing drillingSeismics while drillingCementing: low density slurriesUnderbalanced drillingGeomechanics

Sequence stratigraphy;Advances in Palinology;Geochemistry;Structural geology;Field studies;Basin modeling;Surface geochemistry;Risk assessment; 3D seismic;AVO;Visualization;VSP techniques;4D seismics;Telecommunication

Example of 2D modelling HC expulsion and migration.

Berkine basin Algeria. After IFP & SH.2002