Revista E&P - Febrero 2011

E P MAG.
C OM
A H A R T E N E R G Y P U B L I C AT I O N
Drill Bit Technology
Downhole Systems
& Solutions
Reservoir
Characterization
Regional
Report:
Arctic
Drill Bit Technology
Downhole Systems
& Solutions
Reservoir
Characterization
Regional
Report:
Arctic
Drilling
advances
Expandable reamers set
a new industry standard
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EXPLORATION & PRODUCTION
W O R L D W I D E C O V E R A G E
FEBRUARY 2011
VOLUME 84 I SSUE 2
A HART ENERGY PUBLI CATI ON www. EPmag. com
COVER STORY
30
Drilling Advances
Expandable reamers move from
marginal to integrated components
6
WorldVIEW: Taking a new
look at North America
In late 2009, Devon Energy decided to refocus
its efforts on the US and Canada. Executive vice
president of E&P Dave Hager talks about the
excitement of staying closer to home.
10
Unconventional: Utica
Operators take a closer
look at the Utica
Utica shale is young
but promising
67
71
36
40
42
46
50
52
54
56
59
63
74
76
78
88
REGIONAL REPORT: ARCTIC
01-4 TOC_FEB_01-4 TOC 1/23/11 12:18 AM Page 1
AS I SEE IT
The world is getting smaller 5
MANAGEMENT REPORT
Integrated solutions are an adaptive change 12
DIGITAL OIL FIELD
Cloud computing stacks up for SPE-friendly reserves management 17
IT advances provide a pipeline for efficient communication 22
EXPLORATION TECHNOLOGY
Making sense of it all 25
WELL CONSTRUCTION
New bit design provides better cuttings 27
PRODUCTION OPTIMIZATION
A lesson worth re-learning 29
TECH WATCH
A new approach meets an old need 80
TECH TRENDS
Innovations and new releases 84
INTERNATIONAL SPOTLIGHT
Uruguay presents offshore opportunities 87
INTERNATIONAL HIGHLIGHTS
Operators display global reach 98
ON THE MOVE/INDEX TO ADVERTISERS 103
LAST WORD
Taking the measure of reliability 104
E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057.
Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149; 2 years (24 issues), US $279. Single
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DEPARTMENTS AND COMMENTARY
COMING NEXT MONTH The 2010 Drill Bit Records are in! And you can see them in the March issue of
E&P. Other features include coiled tubing drilling, advances in 4-D seismic, stimulation technology, and subsea
systems. The cover story is an international unconventional shales report that identifies emerging regions of interest,
while the monthly shale focus takes a look at developments in the Barnett. Finally, find out what E&P activity is
taking place in West Africa in a special regional report. As always, remember to visit www.EPmag.combetween
issues to read exclusive articles on industry events and the latest news.
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T
he first appearance of the cloud in E&P magazine occurred nearly a year ago in
an interview with Steve Ballmer, CEO of Microsoft Corp. Ballmer talked with Hart
at Microsofts 7th annual Global Energy Forum about the advantages of the cloud
and what it means for oil and gas companies. A few weeks ago, Microsoft was back in
Houston for its 8th annual Global Energy Forum. Since last year, the focus on the
cloud has gained momentum with Microsofts Windows Azure platform, a product
Craig Hodges, Microsoft general manager, US manufacturing and resources,
described as an operating system in the cloud.
The Windows Azure platform is fairly new. It was introduced a year ago and began
to gain traction in the oil and gas industry in November 2010. According to Hodges,
Azure allows companies to put their business processes up in the cloud.
Acceptance across industries has been quick. Hodges reported there are 20,000 cus-
tomers and partners using Azure. On a broad base, weve got great uptake just in the
last 12 months, he said. Large international operating companies are onboard already,
Hodges said. Seven out of 10 big energy companies around the globe are in the game.
Chevron is one of the supermajors making use of the cloud. Chevron has improved
joint venture information sharing using Windows Azure, which the operator said pro-
vides a secure space of partners to exchange technical information, allows synchronizing
between on-premises and cloud databases, and offers a federated security model that
allows each operator to manage its own authentication and authorization resources.
Pemex, Mexicos national oil company, is using the cloud to standardize data man-
agement, information access, and computing infrastructure to better use existing
datastores that contribute to controlling costs and optimizing production.
Shell also is using the cloud to increase business value through high levels of busi-
ness integration. Jay Crotts, vice president of IT services for Shell, told attendees of the
Global Energy Forum that Shell has identified four advantages of using the cloud:
speed, agility, cost, and scale.
Crotts explained how Shell is using what he called a hybrid cloud to its advantage.
The hybrid cloud combines traditional and cloud computing, he explained, listing
Shells hybrid cloud components as infrastructure as a service, platform as a service,
and software as a service. The biggest challenge, according to Crotts, is not the cloud
itself. The challenge is in making sure there is a consistent environment internally. I
think the cloud is ready, he said.
Clearly, the cloud in its many applications holds great promise. These kinds of
technologies are going to make oilfield operations teams much smarter and able to
manage many more fields more productively, Hodges said.
In light of the views that surfaced at this meeting, it appears that if your company is
not onboard with the cloud now, it might be time to give
serious thought as to why not.
The cloud is coming, and its coming faster than you
might think, Hodges said.
As I
SEE IT
EPmag.com | February 2011
Editor JUDY MURRAY
jmurray@hartenergy.com
Senior Editor RHONDA DUEY
rduey@hartenergy.com
Senior Editor TAYVIS DUNNAHOE
tdunnahoe@hartenergy.com
Senior Editor JO ANN DAVY
jdavy@hartenergy.com
Senior Editor RICHARD G. GHISELIN
dghiselin@hartenergy.com
Contributing Editor DON LYLE
dlyle@hartenergy.com
Assistant Editor ASHLEY E. ORGAN
aorgan@hartenergy.com
Corporate
Art Director ALEXA SANDERS
asanders@hartenergy.com
Senior Graphic
Designer LAURA J. WILLIAMS
lwilliams@hartenergy.com
Production Director
& Reprint Sales JO LYNNE POOL
jpool@hartenergy.com
Manager,
Special Projects JO ANN DAVY
jdavy@hartenergy.com
Online Editor REBECCA TORRELLAS
rtorrellas@hartenergy.com
Director of
Business Development ERIC ROTH
eroth@hartenergy.com
Group Publisher RUSSELL LAAS
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Exectutive Vice President, Consulting
E. KRISTINE KLAVERS
Executive Vice President and CFO
KEVIN F. HIGGINS
Executive Vice President
FREDERICK L. POTTER
President and Chief Executive Officer
RICHARD A. EICHLER
The world is getting smaller
5
Read more commentary at
EPmag.com
JUDY MURRAY
Editor
jmurray@hartenergy.com
05 AsISeeIt_Layout 1 1/22/11 7:38 PM Page 5
February 2011 | EPmag.com
6
industry
PULSE
T
he slippery balancing act known as supply and
demand has taken its toll on the oil and gas industry
numerous times, most recently in 2008 as a result of a
larger worldwide economic crisis. Arguably, the oil indus-
try rebounded much more quickly than other industries,
with per-barrel prices resting comfortably in the US $80+
range for much of 2010. And reports from agencies such
as the International Energy Agency (IEA) and Energy
Information Administration (EIA) that track supply and
demand trends indicate that the industry is headed for an
even more comfortable state as it enters 2011.
In a research report titled Improving fundamentals
point to higher oil price trading range, Simmons & Co.
International studied data from these two agencies cov-
ering much of the past year. While Simmons analysts
tend to be more bullish in general than the IEA or EIA,
the former surprised them in November by reporting
one of its largest monthly demand revisions, expecting
3Q 2010 demand to grow by almost 1 MMbbl/d of oil.
With the upward revision, global demand growth has
accelerated every quarter in 2010, the report states,
resulting in a quarterly record high global demand of
88.5 MMbbl/d of oil in 3Q 2010. The EIA also upped
its September US demand statistics by more than
200,000 b/d of oil, further increasing the record-high
3Q 2010 global demand estimates.
Additionally, IEA revisions indicated that the oil mar-
ket was undersupplied in the second half of 2010, partly
due to a rapid decline in floating storage inventories.
Overall, the Simmons report indicates that 3Q 2010
marked a significant milestone as it was the quarter
in which global demand fully recovered from the effects
of the economic meltdown. Global demand of 88.5
MMbbl/d of oil topped the previous quarterly high of
88 MMbbl/d of oil in 4Q 2007. Not surprisingly, this is
mostly due to non-OECD countries, where 3Q 2010
demand was 10% higher than 4Q 2007 demand.
2011 outlook
What do last years trends mean for this year? Simmons
is modeling more normalized demand growth as it
recognizes that many variables exist. For instance, while
developing countries are seeing gross domestic product
(GDP) numbers that are outstripping expectations,
inflation and rising interest rates could dampen growth
going forward. Continued pressure to the US dollar will
make exports more competitive, and other factors
such as slowing Japanese production, austerity meas-
ures in Europe, and displacement of crude oil used for
heating and power generation also will help stymie
demand growth.
Therefore, Simmons modeled flat demand in
the OECD and a 3.3% increase in non-OECD
countries, including China at 5% growth.
Meanwhile, supply growth is expected to be
more modest in 2011 than in 2010. The report
cited factors such as a mild hurricane season in
the US and onshore supply growth from the
Bakken and natural gas liquids (NGLs) as factors
spurring supply increases in 2010. But the glacial
permitting process now taking place post-morato-
Oil markets tightening quickly
Research indicates that the industry has recovered from the recession and is going to be
hard-pressed to meet growing demand.
Global energy use is expected to grow by 36%, with non-
OECD countries led by China, where demand surges by
75% accounting for almost all of the increase. (Graph
courtesy of the International Energy Agency)
Rhonda Duey, Senior Editor
06-8 IndPULSE-FEB_La!ot 1 1/22/11 8:06 PM Page 6
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8
rium in the Gulf of Mexico should ensure declining pro-
duction offshore, which possibly could offset onshore
supply gains.
Other countries will see modest supply growth,
including Russia, Brazil, and Colombia, and biofuels
are expected to add another 200,000 b/d of oil to the
supply mix.
What about OPEC? The report notes that global
demand growth has outpaced both OPEC and non-OPEC
supply by about 400,000 b/d of oil. To help fill the gap,
Simmons expects that OPEC will need to ramp up its pro-
duction by about 1 to 30.1 MMbbl/d of oil. OPEC has
been producing between 29.15 and 29.25 MMbbl/d of oil
since July with no meaningful commentary on increasing
production, the report states.
Overall, the report concludes that the supply and
demand framework will tighten more quickly than had
been anticipated previously. While our demand assump-
tions for 2011 are well-grounded, it must also be said that
upside optionality outweighs downside risks based on
leading-edge trends and assuming global GDP growth of
about 4% or better in 2011, it states. Further, our non-
OPEC production assumptions do not necessarily have
the same degree of upside potential as our demand
assumptions.
The bottom line is that it is more likely that the global
physical markets for oil tighten more quickly than more
slowly in 2011.
2010 to 2015
The most recent IEA forecast indicates a modest
upward supply revision and a 300,000 MMbbl/d of oil
demand increase. However, the mid-term estimates (2010
to 2015) are positive, with a demand in global growth of
5.9 MMbbl/d of oil, offset only marginally by increased
supply. OPEC spare capacity is expected to decline from
5.1 to 3.6 MMbbl/d of oil over this period.
Simmons analysts found this report particularly encour-
aging because demand forecasts were revised higher for
the sixth consecutive month. Looking into 2011, the IEA
revised its demand forecast by 300,000 b/d of oil over its
previous forecast. The latest estimates put global demand
at 88.8 MMbbl/d of oil for 2011.
To 2035
In a November 2010 presentation to the press, the IEA
forecast a 36% rise in global energy use by 2035, with
non-OECD countries accounting for almost all of the
increase. China alone is expected to see demand
surges of 75% over this time frame. Demand for all
types of energy will increase in non-OECD countries,
while demand for coal and oil will decline in the
OECD. Meanwhile, conventional oil production is
expected to be flat, even including fields yet to be
discovered or developed, and incremental supply
surges will come from unconventional oil and NGLs.
The presentation notes that natural gas is set to
play a key role in meeting the worlds energy
needs. The agency forecasts unconventional gas
plays will account for 35% of the increase in global
supply to 2035, and increasingly this will come
from non-US fields. Worse news for gas producers,
though the IEA expects the gas glut to peak soon
but dissipate very slowly. This will keep pressure on gas
exporters to move away from oil price indexation, particu-
larly in Europe. And as many have predicted, sustained
low natural gas prices are likely to beat out renewable and
coal in power generation.
From an oil standpoint, demand is expected to increase
before 2020 but taper off by 2035, with declining OECD
demand overpowering growth in non-OECD demand.
Industry plans
As if in anticipation of this tightening market, the global
energy market is planning record spending in 2011,
according to a survey by investment bank Barclays Capi-
tal. The survey reports international E&P spending is
expected to rise 12% in 2011. We believe the industry is
in the early stages of a long international upcycle, the
report states.
More than 400 oil and gas companies were surveyed.
The largest spending increases will be felt in Latin Amer-
ica, the Middle East/North Africa, and Southeast Asia. It
also is anticipated that supermajors will outspend national
oil companies for the first time in several years. We view
this as a positive indicator, the report states.
Worldwide E&P spending is on the rise, particularly outside of North
America. (Graph courtesy of Barclays Capital)
industry
PULSE
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O
klahoma City-based Devon Energy has long
been a force with which to be reckoned
amongst the larger US independents, steadily
growing its portfolio both in North America and
overseas. But recently the company announced that
it would strategically reposition itself as a high-growth
North American onshore company, divesting its off-
shore and overseas assets and directing proceeds from
those sales to its US and Canadian onshore portfolio
as well as retiring debt.
This is not to say the companys portfolio has been
vastly diluted. Devon is active in the Avalon and Bone
Spring plays in the Permian Basin, the Granite Wash
play in the Texas Panhandle, the Cana Woodford
shale play in Oklahoma, and the Jackfish and Pike
plays in Canada as well as holding acreage in the
Barnett, Haynesville, and Horn River shale plays.
With this vast portfolio now commanding its full
attention, the company has ambitious plans to
continue to grow shareholder value.
Why was the decision made to focus
on North America and not the Gulf
of Mexico or offshore Brazil?
We thought it was an appropriate
decision. With the large number
of opportunities that we had in
our E&P portfolio, there were
more than were going to be
properly funded in the next few
years. When we looked at it from
several perspectives, it made the
most sense to monetize the off-
shore and international.
First, we didnt think that we
were getting the full value in our
stock price for the Gulf of
Mexico and international proper-
ties. Those tend to be more long-
term projects, and because they
didnt show up in short-term pro-
duction or reserves, they werent being fully valued by
the marketplace.
We also felt the nature of those assets made them
very marketable. We had had a number of discoveries
in the deepwater Gulf of Mexico as well as discoveries
in deepwater Brazil, and we felt that they would be
very interesting to many different companies.
It wasnt a question of competency. We have tremen-
dous operational competencies both onshore and off-
shore. But we had to make a decision.
Your discovery in Brazil was a presalt discovery.
Was that one hard to walk away from?
From a pure excitement and technical perspective,
yes, because theres a lot of thrill, and we think its a
tremendous discovery. But sometimes you have to take
off your technical hat and put on your financial hat.
This refocusing must have put some strain on your group to
optimize the remaining assets. How have you gone about
doing this?
We had not really been using the North American
onshore assets for our growth engine in the past few
years. Redirecting some of the people and capital to the
onshore allowed us to take advan-
tage of the deep inventory that we
have. We have increased the capital
spending associated with North
America onshore, and we are confi-
dent were going to have consistent
growth from those opportunities.
At the same time, we have to rec-
ognize the oil and gas environment
that were in. We arent necessarily
trying to maximize the production
growth at this point; were trying to
optimize production growth along
with the proper fiscal discipline so
that we focus on growth on a per-
debt-adjusted share basis. We could
grow at an even higher top-line rate
if we chose to take on a lot more
debt or issue a lot of equity. But
thats not what were doing.
Taking a new look at North America
In late 2009, Devon Energy decided to refocus its efforts on the US and Canada. Executive
vice president of E&P Dave Hager talks about the excitement of staying closer to home.
February 2011 | EPmag.com 10
world
VIEW
Dave Hager of Devon Energy.
(Images courtesy of Devon Energy)
09-10 Hallib!rion ADFOLD_La"o! 1 1/22/11 8:09 PM Page 10
O
the marketplace.
doing this?
world
VIEW
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the marketplace.
doing this?
world
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the marketplace.
doing this?
world
VIEW
How are you optimizing these assets?
Most of what we are doing is development drilling. We
have a tremendous combination of opportunities that are
oil-oriented, gas-oriented, and also what we call the liq-
uids-rich trend, producing natural gas liquids
(NGLs). Depending on commodity prices, we
have the ability to flex our capital budget to
emphasize one product type over the other.
For instance, this past year we spent more than
85% of our capital on oil and liquids-rich oppor-
tunities because of the relative strength of oil and
NGLs compared to gas, and we anticipate doing
more than 90% in 2011 on those types of oppor-
tunities. Now, if the relative prices change, we
have the ability to move back and put more capi-
tal against our dry gas opportunities.
How quickly might you ramp up in the Haynesville
and Horn River plays if gas prices suddenly surge?
We look at everything on a long-term basis, so its
important for us to examine not only commodity
prices today but commodity prices over the next
five to 10 years. We have to have the confidence
that the prices are going to be at a high enough
level over that time to put capital against those
programs.
You have fewer assets to deal with, but you still have a
pretty busy portfolio. How does Devon manage its
assets and prioritize them?
We are very focused on the returns that we receive and on
the profitability of our investments. So we look closely at
several economic measures when we decide to make our
investments, and we invest in those capital projects that
give us the greatest economic return. We are not focused
on growth at any cost. We are focused on economic
return to the shareholder.
You mentioned in your 3Q 2010 conference call that you are see-
ing outstanding wells by using horizontal drilling technology
in the Bone Spring play. What other old fields in the Permian
Basin and elsewhere might benefit from this technology?
We have a tremendous amount of experience with hori-
zontal drilling, starting with the Barnett, where we were
one of the early leaders. We are looking throughout
North America for additional opportunities to apply that
technology.
Specifically in the Permian, this is an area that has a
number of stacked pays, so we are looking at formations
that were drilled vertically in the past to see if horizontal
drilling may work. Were in a testing phase.
As executive vice president of E&P, which of your assets are
you most excited about as you enter 2011?
The thing that Im most excited about is the number of
different plays we have in different areas. Depending on
the success of any one of the plays, we can shift capital
quickly to accentuate the areas where were having the
most success and de-emphasize areas where were having
the least success. Frankly, I dont get particularly excited
going into any specific play; I just wait to see what the
results look like.
Having said that, we are ramping up activity in the
Cana Woodford play about 40 miles (64 km) west of Okla-
homa City. We have more than 20 rigs working in that
play right now, so its going to be one of our largest capi-
tal expenditures. The Permian in general is very exciting,
and were continuing our development activity up in our
Jackfish complex in Canada. Well have our Jackfish 2
onstream this year, and were waiting for regulatory
approval on our Jackfish 3.
Were also working on an area just south of Jackfish
called Pike, where weve formed a 50-50 joint venture
with BP, and this winter were drilling a number of strati-
graphic wells and hope to have at least one Jackfish-sized
project identified by the end of this drilling
campaign.
11
A Devon rig drills in the
Cana shale play.
world
VIEW
10-11 WorldView-FEB_Layout 1 1/23/11 12:09 PM Page 11
T
he last few years have indicated a trend within the oil
industry to provide integrated/digital solutions to the
customer, with the value proposition that functional
silos work together for the common goal.
Organizations can, at times, lack the necessary frame-
work to execute an integrated solutions strategy. A
strategic bridge is necessary to execute the strategy and
perform integrated operations. This bridge supports
strategic decisions through the structure and culture of
an organization. Customer needs are addressed through
the project and program approach, which is a collabora-
tive effort that brings together people of various levels of
expertise and perspective.
Statistics show that 66% of the companies in the US
fail to execute their strategy. This failure is due largely
to the fact that those strategic decisions do not coincide
with the structure and culture of the organization,
which results in poor execution and strategic failures.
Even when technical challenges are solved through col-
laboration, the most important question is whether this
collaboration is worth it.
Integrated solutions: a strategy
Traditionally, service companies have had a weak matrix
for solving a particular problem related to a specific area
of expertise. Operators leverage the industrys
specific knowledge in their operations. Service
companies that offer differentiated products
and solutions need to understand the cus-
tomers needs and provide cutting-edge tech-
nology with less response time. Their focus is to
offer unique value for the customer by creating
products with higher value.
Strategic alignment for execution
An important factor in executing the inte-
grated solution strategy is the environment
of the service company. The correct strategic
alignment measures the proper fit between the
two elements of a domain (i.e., between the strategy and
culture, between the strategy and structure, or between
the structure and culture).
The four archetypal organizational cultures include
competence, control, collaboration, and cultivation,
often referred to collectively as a cultural egg. Inte-
grated solutions fall under the collaborative-type cul-
ture, which emphasizes teamwork and people by
deploying cutting-edge technology. The distinctive com-
petence of an organization can be determined with such
a cultural egg. For integrated operations, for instance,
customer intimacy is required, which in turn means a
collaborative culture. Operational excellence, on the
other hand, is a control culture.
It is very important to recognize clear, distinctive
competencies. Companies unable to recognize their
competence have a real challenge. For example, an
organization is trying to reduce cost to increase the busi-
ness efficiency of its several business segments in dis-
tressed economic times. The solution can be focused
toward those business segments that are not generating
considerable profits. But those business segments can
represent distinctive organizational competence, such
as innovation. A company might think that the problem
can be fixed by reducing operating cost, resulting in
business optimization. But, in fact, this random cost
reduction only helps in the short term. The long-term
damage will be significant because the organization has
Integrated solutions
are an adaptive change
An integrated solution needs an appropriate environment for strategic execution.
Hamayun Z. Raja, SPE, Halliburton
PROGRAMS
IMPLEMENT OPERATIONS STRATEGY
PROJECTS PORTFOLIO
S
T
R
U
C
T
U
R
E
C
U
L
T
U
R
E
A strategic bridge executes the strategy and performs integrated operations.
(Figures courtesy of Halliburton)
12
management
REPORT
12-16 MgtReport_Layout 1 1/22/11 8:17 PM Page 12
l r
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Email: dewnhae@nocom www now com/downho
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Performance and Directional Drilling Motors - HEMIDRIL`, PowerPLUS'", Square Moto
Intervention and Completion Tools - Coiled Tubing, Wireline, Row Control, Completion Tools
Drilling Tools - Jars, Agitator'" Tools, Shock Tools, I ntensif ier
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Borehole Enlargement - On-Demand Underreamers, Bi-Center Bits, String Tools
Coring Services - Conventional and Corion Express' Coring Services
Advanced Drilling Solutions - Drilling Optimization and Vibration Mitigation Services
Fishing Tools - Catch Tools, Repair and Remedial Tools, Stroking Tools
Service Equipment - Make-U reak-Out Machines, Test Stands, Buckin Units
Contact your NOV Downhole representative by email
or on the web for further information on our complet
Iine of downhole products and services.
- =s su
Combining the bell e
D?
Downhole,
model '
-
1
compromised its distinctive competence to respond to
market changes.
Traditionally, service companies have had skill areas
and have delivered services/products from their func-
tional silos. Focusing on competence enables service com-
panies to accumulate and share technical expertise. On
the other hand, a strong matrix structure is needed for
collaborative-based strategies. This structure responds to
rapidly changing customer needs. The strong matrix
requires project managers and a project management
office structure be in place and in control. The benefits
of a strong matrix structure include:
Coordination efficiencies that are highly responsive to
changing customer or market needs while also bring-
ing faster resolution of interdisciplinary issues; and
Incentives tied to customer value, mean-
ing that project outputs are clearly
related to customer goals, thus providing
a common performance matrix for dif-
ferential functional silos.
Therefore, service organizations employ-
ing the strategy of an integrated solution
also must change the structure from a weak
to a strong matrix for collaborative efforts
to take place.
When to say no to collaboration
Should the answer to integrated solutions
always be yes, or is there a case where an
integrated solution is not the best option?
The rule for deciding whether or not to
implement an integrated solution is based
on two factors: opportunity costs and collab-
orative costs.
Collaboration should occur only if the net value of
the collaboration is greater than the return minus both
the opportunity costs and collaborative costs. This is
referred to as the collaboration premium: collaboration
premium = return on the project opportunity costs
collaborative costs.
Opportunity cost is the cost associated with anything
extra that could have been done with the time, effort, and
resources going into a collaborative project. It is the net
cash flow that organizations forego, choosing collaboration
over other options. Collaboration costs refer to the extra
hassles of working across units and their consequences.
In 2006, a bacterium outbreak in spinach sickened
200 and killed a two-year-old boy in the US. Assisting
food companies presented a big opportunity for DNV,
a company with expertise in safety. A joint venture was
formed between certification and consulting. A risk-con-
sulting company helped food companies reduce risk.
The initial estimation revealed that revenue could be
increased by 200% with the help of collaboration. The
consulting company did not realize that it could poten-
tially increase its profit margin by finding alternative
ways to use available resources. The best resource was
risk-management consulting for IT. Hence, opportunity
cost was greater than collaborative cost.
The second problem was that collaboration costs
were high as well; the organizational structure was not
set up for collaboration. Rough estimates for this project
include a return on the project of US $40 million minus
$25 million on opportunity costs and $20 million on
collaboration costs, resulting in a loss of $5 million on
the collaboration premium.
Given that the collaboration premium was negative,
DNV should not have gone ahead with this project.
This exercise should be carried out with an integrated
solution/collaborative project to get a sense of what to
improve.
An integrated solution is the combination of people,
processes, and technology, and is the right combination
for solving the collaborative business model, which
addresses the technical change of strategy. A strong
matrix-based structure is needed to execute the collabo-
rative efforts. Solving a structural problem is not simply
dealing with one piece of the puzzle. It also is necessary
for service companies to determine the appropriate cul-
tures and efforts required for collaboration, thus deal-
ing with an adaptive change.
References available.
14
management
REPORT
COLLABORATION
CULTIVATION COMPETENCE
CONTROL
O
p
e
r
a
t
i
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l

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A collaborative culture is required for customer intimacy, but operational excel-
lence is a control culture.
Roxar Building Blocks - Build Your Future
Innovation, usability, quality and knowledge are core building blocks in Roxa r. Building block
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17
S
tandards Pertaining to the Estimating and Auditing
of Oil and Gas Reserves Information from the Soci-
ety of Petroleum Engineers (SPE), which incorporates
the requirements of the 2007 SPE/WPC/AAPG/SPEE
Reserves and Resources System, gives clear guidelines as
to what is expected of modern reserves reporting. The
fundamental idea of providing online reporting soft-
ware that is secure, simple, and yet powerful in its flexi-
bility is equally applicable to reserves reporting.
The SPE standard states, The sufficiency and reliabil-
ity of the database is of primary importance in the esti-
mation of reserves and other reserves information. The
information within such a database reflects the total
hydrocarbon resources of an oil company, and whether
in place, contingent, or prospective, these resources are
its primary assets. Accurate reporting against these assets
is not only needed to comply with regulations, but also is
used to define the total value and share price of the
company so it can secure finance and investment oppor-
tunities for the future.
It makes sense, therefore, that a centralized system
should contain all of the key information and properties
relating to the companys property portfolio to give a
complete view of the business, not only to ease the
process of auditing, but also to provide a powerful busi-
ness tool upon which to base strategic decision-making.
Audit-ready
The values of reserves are heavily scrutinized, and sup-
porting software should contain comprehensive security
with a clear audit trail that always is available. The SPE
document calls for a review of the policies, procedures,
controls, documentation, and guidelines as part of an
audit of reserves information. Policies and procedures
should be incorporated into a single database as accom-
panying metadata, ensuring that information can be
presented quickly and clearly to the auditor. Further-
more, the controls and reporting available within such a
database application can prove data integrity and even
document the business process for the user.
The SPE says that checks should be made on adher-
ence to policies, procedures, and controls. Automatic
tracking of changes with details of what was changed,
when, and by whom simplifies operational processes and
ensures compliance with auditing requirements.
The SPE also recommends that historical reserves and
revision trends be part of an audit. To comply with this
requirement, it is essential that all information,
historical and current, is contained within one
database. By storing all of this information in a
secure cloud, a complete inventory can be
stored in one place with an audit trail that can be
traced. This single window on information
enables revisions, re-appraisals, and additions to
be viewed quickly, with the added benefit of
detailing why a change was made, what was
changed, and by whom. Furthermore, methods
by which reserves are estimated and which organ-
ization or person provided the estimate can be
identified, truly giving a complete view of the
ways in which values have been derived.
System flexibility
Database management might seem like an IT
issue, but in the area of reserves information, this
digital
OIL FIELD
Cloud computing stacks up for
SPE-friendly reserves management
An online solution helps oil companies manage their most important assets.
Dr. Esther Hayes, EnergySys
The graphical report shows production forecast and reserve categoriza-

tion. (Figures courtesy of EnergySys)
17-21 DOF-energysys_Layout 1 1/22/11 8:22 PM Page 17
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database is fundamental to how companies run their operations. The SPE
requires that significant changes from anything other than production
should be accommodated. This could be geographical or political differ-
ences, for example, or inflation or price variances. A system needs to allow
for the investigation of multiple long-term investment scenarios and offer the
flexibility to show the effects that any changes have on the current or alterna-
tive business strategies. Changes must be in accordance with review/appraisal
cycles and must be completely audited. A modern solution should take data
from reserves portfolios and development definitions and handle all of the
reserves inventory management, including calculating monthly and annual
forecasts with values for revenue, expenses, reserves, production, and net
present value, giving users confidence in both their business decisions and
their ability to meet auditing requirements.
The solution
The EnergySys Reserves Management application takes operational data
from production and allocation reporting systems or even directly from an
email so the latest information regarding reserves decline is readily avail-
able in the reserves inventory. This also gives the user the capability to review
forecasts against actual data, providing the information required to continu-
ally improve estimates and future projections.
The latest online application, built on a common core also used for the
companys Hydrocarbon Allocation and Production Reporting applications,
is a single place for all statutory and supporting data. It provides flexible cal-
culations and reporting to meet diverse needs whether for internal, cus-
tomer, or regulatory requirements. It allows for any number of alternative
development scenarios defined by production and reserve profiles, capital
and operational expenditure schedules, price profiles, different levels of
project risk, and long-term price and cost discounts. Standard workflows and
calculations are provided within the system, including calculation logging to
clearly show how values have been determined and that data integrity has
This single window on information enables revisions, re-appraisals, and additions to
be viewed quickly, with the added benefit of detailing why a change was made,
what was changed, and by whom.
digital
OIL FIELD
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Weatherf
ord'
Tactical Technology'"
in action:
SeaLance
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subsea
drilling-with-casing (DwC'") system
Imagine not having
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before running casing.
Imagine not having to
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trip drillpipe and BHAs and
worrying about swab/surge
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larger hole diameters and casing
seats set at optimal depths for
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foundation that enhances the
safety of personnel.
In a world where gaining
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been maintained. It is simple for an auditor to review
information and confirm good data governance now
and for the future.
A modern product should offer flexibility and usability
along with complete security and traceability. Its aim
should be to remove any difficulty associated with audits
for both the company being audited and the auditor.
No more spreadsheets
Many companies continue to rely on spreadsheets to
manage their reserves information despite the fact that
spreadsheets do not address many of the problems identi-
fied here. In fact, spreadsheets can exacerbate these
issues. Inherent problems associated with validating and
controlling data entry into spreadsheets along with ques-
tions related to avoiding unintentional modification, sys-
tem reliability and data integrity, version control, and
change tracking make spreadsheets unsuitable for man-
aging information of this kind. The entire system should
make processes demonstrable with clear and quick
reporting to show an auditor how the reserves were esti-
mated and how data are managed.
EnergySys has recognized the value in having a solution
that can be up and running in days or weeks rather than
months, with the right people able to access the right
information, wherever and whenever they need it.
Online, user-friendly
There also is a growing recognition in large organizations
that IT is not a core skill except in very specialized areas
such as seismic data processing and analysis, where high-
performance computing and sophisticated algorithms are
employed. Deployment of reserves management systems
traditionally has been associated with long implementa-
tion times and substantial upfront costs. An online service
can reduce these factors significantly. Users access the
best available technology and security developments
through a managed online service. The only challenge
then is to build the application and by adopting a ready-
made application, the hard work already is done.
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n todays tough energy market, it is critical for oil and
gas workers to be able to communicate and share infor-
mation with colleagues quickly and efficiently anyplace,
anytime. Swings in supply and demand, volatile prices,
and shifting worldwide energy policies have made E&P
more complex than ever. As the industry expands globally
and work teams are dispersed among multiple locations,
enabling instant communication is a prime focus for oil
and gas IT departments.
To investigate industry attitudes and practices related to
this communication imperative, Microsoft and Accenture
recently conducted their third annual survey of 205 pro-
fessionals within international, national, and independent
oil and gas related companies. The goal of the survey was
to understand the factors that drive increased collabora-
tion among professionals and determine current thinking
about the business value of collaboration tools to enhance
processes and workflows. The newest survey amplified key
trends compared to previous survey findings.
The need for collaboration tools is growing
Industry professionals are collaborating more than ever.
More than one-third (34%) of those surveyed reported
spending more time collaborating in 2010 than the previ-
ous year, and respondents consistently identified the capa-
bility to interact with colleagues, partners, and customers
from anywhere at any time through any device as a tech-
nology enhancement that would further company success.
The rise of the digital oil field draws attention to this
need because it requires the optimization of communica-
tion processes between field workers and management at
home offices. While it is essential for management to
securely capture and analyze the constant stream of data
flowing in from the field, it is more vital for field workers
to have access to technologies that enable them to collabo-
rate with management and receive real-time feedback for
critical decision-making.
Large amounts of information are being shared among
colleagues in disparate office locations, and there has
been an enormous increase in the amount of collabora-
tion that is taking place with experts outside a given organ-
ization. There is no question that the need for a secure
exchange is crucial.
Although the vast majority of those surveyed agree with
this assessment, nearly 40% of them said when they use
instant messaging (IM), they used public IM tools for busi-
ness collaboration, while only 27% are using company IM
tools. Respondents listed email as the primary method
for file sharing, both inside and outside the organization,
followed by the use of physical storage devices like flash
drives and USBs. With employees using various forms
of company and social media to communicate, there is
potential for sensitive information to be compromised.
Another critical point is that many industry professionals
are using older, non-secure methods to share information
and files, a process that unwittingly puts a company at risk
for sensitive data to be lost or stolen. Management needs
be aware of the need for secure sharing environments.
Unified communications solutions
To enhance collaboration across work groups and ensure
the security of information exchange, it is clear that oil
and gas companies must make fundamental changes to
the way they communicate by integrating collaboration
technologies and introducing remote collaboration tools
into a unified communications system. A number of for-
ward-looking companies in the oil and gas industry
IT advances provide a pipeline
for efficient communication
Oil and gas professionals can work smarter, improve productivity, and enable access to critical
information in real time by streamlining communication and business decision-making.
Mike Bannon, Microsoft Corp.
As the industry expands
globally, enabling instant
communication is a prime focus.
22
digital
OIL FIELD
22-24 DOF-microsoft_Layout 1 1/23/11 6:16 PM Page 22
23
digital
OIL FIELD
already are adopting unified communications technology
to gain the new efficiencies they require as the industry
evolves. Unified communications solutions allow users to
see the presence of colleagues to determine who is avail-
able to communicate and then collaborate by instant mes-
sage, voice call, and/or one-to-one video conferencing to
exchange files and see one anothers desktops.
Indonesias MedcoEnergi Internasional, for example,
recently sought to upgrade its unified communications
capabilities so every employee could stay connected.
This approach also was expected to reduce costs across
the organization. In 2010, MedcoEnergi Internasional
deployed Microsofts Lync unified communications solu-
tion in combination with IP phones so even employees
without computers could stay connected and have access
to presence information. By deploying Lync Server, Med-
coEnergi has been able to provide more resilient phone
service at remote sites at a fraction of its previous cost. By
virtualizing its servers, enabling one server to run many
different operating systems and applications, the company
has seen a 50% reduction in required hardware.
Royal Dutch Shell also has gained effi-
ciencies and cost improvements with its
Microsoft communications server. Its
104,000 employees work in more than 110
countries and territories in locations as
diverse as upstream exploration sites,
downstream refineries, and trading floors.
Eighty percent of its teams are global
teams, with members in multiple locations
around the world. Microsoft technology
has streamlined the companys communi-
cations significantly. Shell employees can
switch easily from one communications
method to another. With one click, a
user can change an IM conversation to
a voice call or video conference. More-
over, employees phone numbers and
voice mail are not fixed to a specific phone
device. Calls are routed to wherever the
employee is logged on.
Because Shell employees work in so
many different time zones, determining
who is available in any given geography
often was a challenge. Employees now can
look at an icon next to a persons name
and know whether that colleague is online,
out of the office, or busy.
Unified communications also is reducing
Shells technology costs because a central-
ized VoIP system based on its unified com-
munications solutions lowers the cost and complexity of
managing multiple private branch exchange (PBX) sys-
tems at global offices. The system centralizes all call con-
trol, collaboration, and management servers into three
data centers. Shell anticipates retiring more than 200
pieces of PBX equipment as a result of its switch.
Shell also gains savings from the consolidation of audio
and video conferencing into its Microsoft solution. The
company previously had maintained more than 600 video
conferencing rooms. That number will decrease as Shell
continues to deploy its unified communications technology
globally. Shell expects to significantly reduce the charges
received from its hosted audio conferencing service as well,
with users transitioning to calls via unified communications.
When oil and gas companies apply technology such as
Microsoft Lync for communicating whether from head-
quarters to jungle operations or from senior workers to
new recruits they have begun to control costs, improve
productivity, provide enriched support for their remote
workforce, gain operational efficiencies, and become more
responsive to changes in their business environment.
22-24 DOF-microsoft_Layout 1 1/23/11 6:26 PM Page 23
Introducing Operations Management Suite
'M
Petris enables your com
pany to access accurate and timel
y
production information,
from field to office
, allowing teams to
make better decisions and optimize their oil and gas assets .
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www.Petris.com
22-24 DOF-microsof_La"o! 1 1/22/11 8:27 PM Page 24
At a time when reservoirs are becoming harder to find, PGS delivers the
industry-leading solutions you need.
PGS can hel p your business achieve greate r efficiencies and competitive
advantage with our full range of ground-breaking technologies - one of
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We set the standard for industry service, with our unique people-oriented
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because we are committed to helping you reach your business goals.
At PGS, we are your partner in technology, quality and reliability.
A Clearer Image
www.pgs.com
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E
ldad Weiss is a leading figure in the petroleum
software industry, having grown Paradigm Ltd.
from a small boutique technology player into one of
the largest software and solutions vendors in the
industry. While the industry has made tremendous
strides in data integration over that time, he said,
challenges remain. I recently visited with Weiss to
discuss the status and future of the industry.
What are some of the changes you anticipate in the com-
puter industry that have the ability to bring about disrup-
tive change in seismic interpretation? How will the industry
need to adapt to those advances?
I believe that the progress weve been seeing over the
past two decades the exponential growth in available
data, the automation tools being developed to process
and analyze these data, techniques for interpreting
multiple surveys and multiple volumes, and multidisci-
plinary data sharing will continue
and perhaps even accelerate. Each
leap forward will require the industry
to adapt its tools and workflows to
take advantage of the new capabilities.
The emergence of prestack data as
a component of many workflows, for
example, requires more than just an
ability to see trace data. The inherent
complexity of ray paths through the
overburden, the sheer volume of data
that need to be accessed, and the
effects of anisotropy on waveform propagation are only
some of the challenges that face deadline-constrained
geoscientists who are suddenly being required to make
sense of 30 to 50 times more data than before. Visuali-
zation tools, new display methods, and processes that
make visible the illumination that resulted in a given
reflector or event are all part of the answer and will
become increasingly accessible to the new generation
of geoscientists.
Despite enormous advances in computer technology, many
interpreters still do things the same way because Thats
the way Ive always done it. How can change management
be driven by oil companies? By software vendors?
The challenges for the E&P industry, as I see them,
are threefold: We need to further develop the tools
needed to fully utilize all of the available data, we
need to build new workflows to make efficient use of
multidisciplinary integration of data and applications,
and we then need to embark on a comprehensive edu-
cational program aimed at transitioning such novel
processes from advanced users to the mainstream
community. This will entail a joint effort on the part
of E&P software vendors and oil and gas companies.
Users are in danger of being over-
whelmed by the sheer amount of data
now available and by the integration of
all these data at the desktop level. The
role of data management is becoming
increasingly important due to the
growing need to improve data access
permission and security measures.
Oil companies must also insist that
their asset teams take advantage of the
new technologies and back up their
drilling decisions with a critique of the
data and their limitations; a review of alternate out-
comes, probabilities, and uncertainties in the interpreta-
tion and model-building phases; and a discussion of the
risks engendered by prospective drilling programs
(overpressure, cave-ins, fracture zones, etc.). These dis-
cussions should be interactive and comprehensive and
include all of the various teams as well as management.
It is only when managers ask for more detail and rigor-
ous science as part of the decision-making process that
geoscientists will begin to
broaden their activity and
use new and advanced
technology to deliver on
these expectations.
Making sense of it all
Paradigm Ltd.s founder and CEO discusses the challenges the industry
faces as the data explosion accelerates.
EPmag.com
RHONDA DUEY
Senior Editor
rduey@hartenergy.com
25
exploration
TECHNOLOGY
Each leap forward
will require the
industry to adapt
its tools and
workflows to take
advantage of the
new capabilities.
25-26 ExpCOL_Layout 1 1/23/11 6:34 PM Page 25
25-26 ExpCOL_Layout 1 1/24/11 11:02 AM Page 26
The best ideas never happen in a vacuum. They're the result of listening,
understanding, and getting to the heart of your challenge.
From reservoir planning through every phase of recovery and processing,
we've found that working with the people we're working for is essential
to crafting a fit-for-purpose solution and delivering flawless performance.
Because when we're all on the same team, we re pretty hard to beat.
v& I
BAKER
HUGHES
Baker Hughes.
d we're know
George Vassilellis, Lead Reservoir Engineer
As part of our new Reservoir Development
Services group, George works with customers
like you in evaluating unconventional hydrocarbon
assets to help them improve efficiency and increase
recovery. Learn about his model for shale resources
at www.bakerhughes.com/george
www.bakerhughes.com
0201 1 Baker Hughes Incorporated. NI Rights Reserved.
F
1 ?
L=J
well
CONSTRUCTION
D
rill bit technology is in a continuous state of
evolution. Many operators have experienced
better performance in drilling operations by match-
ing bit design to highly advanced bottomhole assem-
blies and using bits specifically designed to contend
with specific types of formations, including improved
cutter strength, hybrid combinations of roller cones
and PDC technology, and more aggressive cutter pro-
files. With an improved capacity influencing bit selec-
tion, more options are leading to more efficient
drilling projects.
When it comes to analysis, more rock equals more
data. While coring provides optimal samples, the trips
needed to acquire cores are not always considered
the best investment, especially in tight markets such
as unconventional gas. While
MWD/LWD can assist drilling
engineers in optimizing the tra-
jectory of the well, geologists
often are left out of the process
with only a limited amount of
information garnered from cut-
tings. Where PDC bits are used,
these cuttings often are referred
to as rock flour. While cuttings
can provide a limited amount of
reservoir data, larger samples are
needed to provide more down-
hole data.
Encore Bits LLC currently is making
headway with what is known as the
Micro-Coring Bit. The new bit provides
all the advantages of PDC capability,
while allowing the generation of a micro-
core of the formation being drilled in
the center area of the bit where the cut-
ting structure is interrupted. Conven-
tional cores are acquired by running a
standard coring bit, which requires an extra trip with
no gains in ROP or total depth. By adding micro-cor-
ing capability to an engineered PDC bit, the coring
process takes places automatically with each successive
plug or micro-core circulated to surface through the
annulus. Having a legitimate section of rock can open
a wide range of information on downhole conditions
throughout the entire well bore, giving geologists
something to work with. The design allows for an
improvement in cuttings quality, especially in hard
rock environments where standard cutting sizes are
reduced due to the low depth of
cut achieved in these formations.
In addition to providing geolo-
gists with better rock samples
at surface, the No Center Bit
Design also saves a significant por-
tion of the energy used in the bits
cutting action. While this bit cur-
rently is being tested domestically,
it already has shown the ability to
generate larger rock fragments
than conventional bits in Pak-
istans Lumshiwal sandstone.
Coring operations soon might
be carried out simultaneously
with the drilling operation, reduc-
ing trips and nonproductive time
in the process.
Drill bit design will continue
to improve the speed at which
fields are developed. Breaking
down the barriers that exist
between
drilling productivity and reser-
voir characterization can only
enhance the profitability of
field operations.
New bit design
provides better cuttings
Rock data are key parts of full field development, although rock flour is
the most available substance being circulated up the annulus for now.
EPmag.com
TAYVIS DUNNAHOE
Senior Editor
tdunnahoe@hartenergy.com
27
When it
comes to
analysis,
more rock
equals
more
data.
27 WellConstruction_Layout 1 1/23/11 11:54 AM Page 27
27 WellConstruction_Laout 1 1/22/11 8:43 PM Page 28
CLEANER
At Newpark Drilling Fluids, environmental
responsibility is not just technology jargon.
Our R&D efforts revolve around innovating
for a cleaner tomorrow and help us keep
our customers ahead of regulatory
requirements.
FASTER
Led by the Evolution
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drilling fluid system,
our technology continues breaking records
in the field without sacrificing safety, quality
or service. Find out where a cleaner kind
of speed can take your results - to existing
and emerging unconventional resource
plays worldwide.
EVOL
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As the leader in high-performance , water
based drilling fluids technology, we listen to
our customers' needs. In 2010 we launched
a new kind of water-based drilling fluid. Our
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Got a challenge? We 're listening. Our success
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NEWPARK
DRILLING FLUIDS
production
OPTIMIZATION
S
ome might recall when branch banks were forbidden
in Texas. I know that is hard to believe when you see
the proliferation of banks gracing almost every intersec-
tion in town today, but it is true. Perhaps you would like
to know why?
Back when Texas really was part of the wild west,
towns sprang up on the frontier like weeds. In those days,
three elements defined a town a saloon, a general store,
and a bank. We all know about the first two, because they
figured into every western movie ever made. The last edi-
fice managed to keep a low profile. The reason was that
the entrepreneurs who ran the early banks believed they
could make more money by installing branch banks in
every new town and grow their businesses. The only prob-
lem was they could have had a dozen banks, but they only
had one set of money. The way they stayed in business was
as soon as the bank examiners came to do their annual
audit, the bank hired a man with a fast horse to move the
money to the next bank overnight. Completely unaware
of this nefarious scheme, auditors were counting the same
money over and over.
Finally, there was a crop failure or some other eco-
nomic disaster, and the hapless depositors found out that
there was not enough money to cover their withdrawals.
After a few unlucky bankers were strung up by angry
crowds, branch banking ended in Texas, for almost a cen-
tury. So why am I telling you this story?
Some of todays oil patch entrepreneurs are like those
old bankers. Say the Black Gold Energy Co. issues a press
release claiming a 20% production increase from its
Bonanza field. Within a few weeks, you start seeing ads
and flyers saying, Black Gold uses Big Bite Bits to boost
production 20%
You guessed it; they all are counting the same 20%
increase over and over and taking credit for it. The fact is
that all of these products might have contributed to the
increase, but it is highly unlikely that any one product
deserves credit for the entire production increase.
I am starting to hear grumbling from the ranks of oil
operators, particularly some independents. In a recent
conversation, an industry veteran voiced his opinion that
many service companies are not delivering the value to
support their prices. This is another way of implying that
they are trying to take sole credit for every production
improvement, increase in drilling efficiency, or cost-
saving procedure. If they can take credit for the value
added, they can charge more. That might be true if they
could prove conclusively that the value added resulted
solely from their product or service.
An operator explained it to me in clear terms: I know
you think that if your tool improves drilling efficiency,
you are entitled to charge more for it, but what you dont
realize is that our company doesnt care about penetra-
tion rates, per se we only care about money! He con-
tinued to explain that if a new whiz-bang rotary steerable
system upped penetration rates by 25% but caused an
additional bit trip, all those drilling efficiency gains were
for naught.
The industry is plainly exhorting service companies to
sharpen their pencils and bring a positive business case
along with their sales pitches. If a company cannot prove
the value it claims to
deliver or cannot deliver
that value consistently, it
had better be prepared
to hop the first fast horse
out of town!
A lesson worth re-learning
George Santayana was right. Those who cannot remember the past are
condemned to repeat it.
EPmag.com
DICK GHISELIN, P.E.
Senior Editor
dghiselin@hartenergy.com
29
it is highly unlikely that any
one product deserves credit for the
entire production
increase.
29 PRODcol_Layout 1 1/23/11 11:55 AM Page 29
The Troll field is one of Statoils key
gas assets on the Norwegian Conti-
nental Shelf, containing approxi-
mately 40% of total gas reserves in
the area. The Troll C platform pro-
duces from oil-bearing layers in the
Troll West reservoirs. First oil was pro-
duced in September 1995. (Photo by
yvind Hagen, courtesy of Statoil)
30
COVER STORY:
DRILLING ADVANCES
Tayvis Dunnahoe
Sr. Drilling Editor
While reamers have been in use for more than
a century, reliability issues have kept them
out of the spotlight until now.
EXPANDABLE
reamers
move from marginal
to integrated components
30-35 drill COVER!or#_La#o"! 1 1/22/11 8:54 PM Page 30
EPmag.com | February 2011 31
COVER STORY:
DRILLING ADVANCES
ole openers are not
new to the industry.
In the early days of
rotary drilling, bits
lost gauge as they traveled downhole. To allow for the
setting of casing, this tapered effect had to be dealt with.
In its origin, a reamer, or a hole opener as they were
referred to then, was run to ensure adequate hole size
throughout the well bore. As early as the 1930s, station-
ary reamers were used to open up pilot holes drilled for
sidetracks and whipstocks.
Standard hole openers exist in fixed sizes and feature
carbide metal teeth insert cutters with sizes ranging
from 6-in. up to 26-in., typically with three or four cut-
ters. As technology advanced, the addition of motors,
MWD tools, and rotary steerable systems to the drill-
string now called for an integrated system. The need for
expandable reamers came into play. Today, reamers are
designed to pass through a restriction and open up
beneath it to expand the hole for the next series of cas-
ing to be run, providing sufficient room between the
casing and the formation for the cementing to take
place. By the mid-1990s, expandable reamers were
becoming a viable type of tool. This is really when
the under-reamer came into its own, said Les Shale,
business development manager Hole Enlargement,
Baker Hughes.
Reliability issues
In the early days, under-reaming was a necessity, Shale
said. This portion of the work often ended in problems
due to the lack of reliability inherent to most under
reaming tools. The early under-reamers were definitely
one thing unreliable, he added. Secondly, typical
reamers were lacking in cutting structure. What would
happen is when the tool would go into a soft formation,
it would work fine, but as soon as it got into a formation
that had any hardness to it, such as 10 to 15 thousand
psi UCS-type formations and above, the hydraulics
would allow the cutter blades to go in and out according
to the formation hardness. The end result
would be an hourglass effect, which often
effected casing running operations.
Early under-reamers were renowned for
unreliability, premature activation, and well
bores that were not always conducive to
smooth casing running operations.
The activation process also has been
improved for the variety of expandable ream-
ers available on the market today. Because
these tools are designed to pass through a
cased hole prior to doing their job, early
activation can cause problems if the tool
expands inside the casing string. In offshore
projects involving high-pressure formations,
damaged casing can wreak havoc on the eco-
nomics of a well in terms of nonproductive
time (NPT) as well as damage to the tool itself.
Typical activation for most under-reamer
tools involves hydraulics, mechanical, or both.
Many tools used shear pins in their early ver-
sions. Activation could be tricky, depending on
the drilling conditions at the shoe. Constant
weight on bit and vibration apart from tor-
sional and stick/slip could create a great
H
The Troll field is one of Statoils key
gas assets on the Norwegian Conti-
nental Shelf, containing approxi-
mately 40% of total gas reserves in
the area. The Troll C platform pro-
duces from oil-bearing layers in the
Troll West reservoirs. First oil was pro-
duced in September 1995. (Photo by
yvind Hagen, courtesy of Statoil)
30
COVER STORY:
DRILLING ADVANCES
Tayvis Dunnahoe
Sr. Drilling Editor
While reamers have been in use for more than
a century, reliability issues have kept them
out of the spotlight until now.
EXPANDABLE
reamers
move from marginal
to integrated components
COVER STORY:
DRILLING ADVANCES
ole openers are not
new to the industry.
In the early days of
rotary drilling, bits
lost gauge as they traveled downhole. To allow for the
setting of casing, this tapered effect had to be dealt with.
In its origin, a reamer, or a hole opener as they were
referred to then, was run to ensure adequate hole size
throughout the well bore. As early as the 1930s, station-
ary reamers were used to open up pilot holes drilled for
sidetracks and whipstocks.
Standard hole openers exist in fixed sizes and feature
carbide metal teeth insert cutters with sizes ranging
from 6-in. up to 26-in., typically with three or four cut-
ters. As technology advanced, the addition of motors,
MWD tools, and rotary steerable systems to the drill-
string now called for an integrated system. The need for
expandable reamers came into play. Today, reamers are
designed to pass through a restriction and open up
beneath it to expand the hole for the next series of cas-
ing to be run, providing sufficient room between the
casing and the formation for the cementing to take
place. By the mid-1990s, expandable reamers were
becoming a viable type of tool. This is really when
the under-reamer came into its own, said Les Shale,
business development manager Hole Enlargement,
Baker Hughes.
Reliability issues
In the early days, under-reaming was a necessity, Shale
said. This portion of the work often ended in problems
due to the lack of reliability inherent to most under
reaming tools. The early under-reamers were definitely
one thing unreliable, he added. Secondly, typical
reamers were lacking in cutting structure. What would
happen is when the tool would go into a soft formation,
it would work fine, but as soon as it got into a formation
that had any hardness to it, such as 10 to 15 thousand
psi UCS-type formations and above, the hydraulics
would allow the cutter blades to go in and out according
to the formation hardness. The end result
would be an hourglass effect, which often
effected casing running operations.
Early under-reamers were renowned for
unreliability, premature activation, and well
bores that were not always conducive to
smooth casing running operations.
The activation process also has been
improved for the variety of expandable ream-
ers available on the market today. Because
these tools are designed to pass through a
cased hole prior to doing their job, early
activation can cause problems if the tool
expands inside the casing string. In offshore
projects involving high-pressure formations,
damaged casing can wreak havoc on the eco-
nomics of a well in terms of nonproductive
time (NPT) as well as damage to the tool itself.
Typical activation for most under-reamer
tools involves hydraulics, mechanical, or both.
Many tools used shear pins in their early ver-
sions. Activation could be tricky, depending on
the drilling conditions at the shoe. Constant
weight on bit and vibration apart from tor-
sional and stick/slip could create a great
H
32
deal of bit bounce, which often led to early
shearing of the shear pin activating the tool
within the casing. This meant an extra trip for
the driller along with NPT for the operator.
Reliability today
One example of the positive developments in
under-reamer technology can be found in
Baker Hughes Hughes Christensen Gauge-
Pro XPR expandable reamer. Part of the
GaugePro XPR success comes from extensive
use in several landmark applications. We
have learned to see what the problems were
and now we can overcome those problems by
introducing new tools better mousetraps,
basically, Shale said.
Improvements in shear pins have been
made by multiplying the number of shear
pins. In some cases, reamer tools can have a
pin that shears internally yet requires addi-
tional weight on the tool to push a sleeve out
of the way before the tool can fully activate,
using either hydraulics or mechanical means
to activate the cutters for hole enlargement.
In the case of the GaugePro XPR, the sys-
tem is ball drop-activated. All the tools are
ball drop-activated at the moment. This is the
current generation of tools, Shale said. The
GaugePro XPR has a direct operation so that
it maintains a dead-head pressure acting on a
ball, but rather than using pins, the system
relies on set screws. These set screws are an
engineered set that uses materials with a
known tensile strength, and that tensile
strength will shear at a certain psi that is
acting on that tool, Shale said.
Typically, the screws are made in batches
from the same material, which is certified to a
certain tensile strength. By testing each batch
at a certain pressure, engineers can deter-
mine tensile strength within +/- 5%. With
these engineered screws, the GaugePro XPR
reamer shear screws work through a hydraulic
method rather than mechanically. This
hydraulic method can be controlled much
more accurately by allowing the pumps to
stroke slowly so the pressure downhole builds
up, Shale said. At activation, the pressure
drops. This signals that the internals of the
tool have been activated and the nozzles are
open, allowing fluid to emit from the ID of
the tool into the annulus of the well bore, which
provides proper cooling and cleaning functional-
ity of the reamer.
Approaching integration
As the industry has moved further offshore in
recent years, the challenges have increased for
under-reaming capacity. Where deep water once
was considered to be 1,000 ft (305 m), common
water depths for many drillers can reach 7,000 ft
(2,134 m). In the southern Gulf of Mexico
(GoM), Pemex has plans for several ultra-deep-
water wells that could exceed 8,000 ft (2,438 m)
between 2015 and 2020. The GaugePro XPR was
successfully deployed in a world-record 31,400-ft
(9,573-m) deepwater well in the GoM. As with
most offshore operations today, the forces
impacting on equipment is quite substantial.
One benchmark example of current reamer
technologys improved role in the integrated
drilling process took place in Norways Troll
field. Conventional drilling methods can be
problematic in extended-reach horizontal wells.
Known as one of the worlds most difficult
drilling environments, Troll field presents many
challenges. Due to the changes in formation
structure, increased vibration is a common prob-
lem for drilling these wells. As the formation pro-
duces vibrations, the associated harmonics often
can cause damage to the drillstring, its compo-
nents, and surface equipment. The operator was
limited to how much drilling could be done. It
was possible to use two or three bits and several
trips to get to a certain position within the well
bore because of the damage and the vibration to
both the equipment and to the actual cutting
structures of the drill bits and the reamers,
Shales said.
The GaugePro XPR is not a standalone tool.
We designed the reamer to work as an inte-
grated system first of all by synchronizing the
reamer with a Baker Hughes bit so that both
tools would have similar designed cutting struc-
tures that could support one another, Shales
said. The bit is the most aggressive part of the
drillstring; this was greatly improved through the
integration of the GaugePro XPR. At Troll field,
COVER STORY:
DRILLING ADVANCES
Baker Hughes Hughes Christensen 14-in. GaugePro
XPR expandable reamer has been used in several land-
mark applications. (Images courtesy of Baker Hughes)
30-35 drill COVERstory_Layout 1 1/24/11 11:01 AM Page 33
Navigator
SERIES
f J
-Shale
Sandstone
TII
_ _ _
- -Limestone
Will
J
. r
34
as the bit and bottomhole assembly (BHA) were in com-
pression, drilling through a hard stringer or a hard sec-
tion of the formation, the reamer cutters could be
anywhere from 80 to 130 ft (24 to 40 m) above the bit
because of the integrated BHA and application. Once
the bit drilled the harder stringer or the section 80 to
130 ft later, the reamer would try to match this perform-
ance as it drilled through that same formation, enlarg-
ing that section.
While the bit had drilled through the harder section
into a more homogeneous formation that was softer than
the hard stringer, the bit would drill away much faster
until the reamer came down to the point where the bit
had drilled through the hard formation. As the reamer
started to drill through the hard formation, the ROP
would be slowed down dramatically. Meanwhile, the bit
was still in the softer formation and would drill itself off
the formation. So the bit would go from compression into
tension, which means the lower BHA below the reamer
was in tension. As the lower BHA is in tension, everything
is hanging on the reamer, so all of the BHA that 80 to
130 ft below the reamer did not have compression on it,
allowing lateral and torsional vibration, causing damage
to the BHA, bit, and reamer cutters.
By designing the bit and the reamer to be synchro-
nized, Baker Hughes matched the bit and reamer cutter
technology so as the bit drilled off in the softer forma-
tion, the bit did not just drill away, allowing the BHA to
remain in compression. Contrary to consensus within
the industry, simply matching cutter size in the bit to
cutter size in the reamer does not provide a matched
system and mitigate vibration. We have known this for
a while because the multiblades on the bits are much
more aggressive than the reamer, Shale said. The
actual loading
per cutter on the
bit was removing
much more
material than the
reamer, so the
bit was more
aggressive and
could drill off
faster than the
reamer. The
results in Troll
field speak for themselves. The operator found savings
through performance improvements of reduced
stick/slip and whirl and improved wear on the reamer
and other equipment.
Looking ahead
The under-reaming world is dramatically changing. As
clients become more demanding, reliability will con-
tinue to be a driving force for this technology. A variety
of applications are generating tools that are rapidly
becoming more sophisticated. Most tools are ball-drop
activated and, in the beginning, consisted of a single
ball. Tools now are designed for multiple balls. In other
words, you can drop more than one ball, so you can
open and close the tool. Closing the tool allows you to
perform different operations, Shale said.
Where reamers once were considered a stationary tool
with a limited, but necessary application, they are rapidly
being integrated into an ever advancing toolstring.
Editors Note: A portion of the technology discussed in this arti-
cle was sourced from SPE paper #138708, First Worldwide
Horizontal Run and Eastern Hemisphere Application of an
Expandable Reamer and Stabilizer BHA on Troll Field, Nor-
way, by Hugh D. Evans, SPE Baker Hughes, and Lydia E.B.
Ulvedal, SPE, Statoil.
COVER STORY:
DRILLING ADVANCES
Baker Hughes Hughes Christensen 12-in. Genesis Premium
HCD506ZX PDC bit is synchronized with the reamer cutters.
simply matching
the cutter size in the
bit to cutter size in
the reamer does not
provide a matched
system and mitigate
vibration.
The DEEPCLEAN* pill combines solvents and surfactants to create the
world's first double emulsion cleanup pill.
The unique application of water-in-oil-in-water technology improves
film removal and droplet dispersion, and can deliver water-wet tubulars
just six minutes after contact , with lower chemical concentrations than
conventional displacements.
The one-drum formula and simplified wash train reduced cleaning time
b
y
five-fnld fnr a Nigerian nperatnr nffshnre
The DEEPCLEAN pill is effective across drilling muds and can be made up
with seawater or brine with densities up to 14lb/gal. Stable up to 300F,
it is suitable for HTHP and other demanding well applications .
Maximize production efficiency and reduce total costs by avoiding NPT
during completion, minimizing future interventions and protecting near
wellbore reservoir permeability.
Mi SWACO
A Schlumberger Company
www.miswaco.slb.com/deepclean
?

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the world's
L
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eselle
40
D EP
. ER
-
PEA
J
ust as success came incrementally to crack the code
for making shale plays economically viable using
advancing horizontal well drilling and hydraulic fractur-
ing technologies, so too are the ongoing improvements
for reducing drilling and completion costs and optimiz-
ing producibility.
Improvements in well steering along the lateral and
downhole measurements, in particular, have been criti-
cal in optimizing well placement, an important key to
economically maximizing production.
Work on Anadarko Petroleum Corp. operated wells
in the active Eagle Ford shale play of South Texas has
demonstrated the benefits of using real-time formation
evaluation along the lateral to optimize well placement
and improve drilling efficiencies, thus improving shale
oil and gas economics.
It has been shown that LWD is a
fast, cost-effective, and dependable
method for conveying data for accu-
rate and verifiable geosteering meas-
urements, comprehensive borehole
geology, shale gas petrophysical eval-
uation, stress assessment, and com-
pletion optimization. Integrating
LWD into the bottomhole assembly
(BHA) allows real-time formation
evaluation that can assess rock
properties in detail and therefore
expedite accurate well placement. The subsequent
LWD measurements in real time and pseudo-real time
also can help avoid hazards, enhance ROP, and optimize
completion design.
LWD measurements can help clarify issues with rock
quality inconsistencies and variable well production
results; the main goal is to gain insight into the reser-
voir-production relationship. Such knowledge enables
operators to refine well placement objectives within the
reservoir column and optimize the completion for the
greatest estimated ultimate recovery (EUR) of reserves.
Improving shale gas recovery rates
While the industry has made tremendous gains in
drilling efficiency in shale plays, the next big gains likely
will be realized in production efficiency.
When these horizontal wells drift outside of their sweet
spots, it is not unusual to see wells with recovery factors
of perhaps one-third of their potential. A major concern
is the effectiveness of a one-size-fits-all geometric well
design approach in developing these resources that only
emphasizes further gains in drilling efficiency.
36
UNCONVENTIONAL
RESOURCES
LWD provides solution for bolstering
shale gas economics
Real-time formation evaluation expedites accurate well placement.
Jeff Alford, Ed Tollefsen, Jeffrey Kok, Shim Yen Han,
and Eric Vauter, PathFinder; Raj Malpani and
Jason Baihly, Schlumberger; and Andrew Perry
and Steve Blanke, Anadarko Petroleum Corp.
600 1,000 1,400 1,800 2,200 2,600 3,000 3,400 3,800 4,200 4,600
Density
image
Weaved top Penetrated top Penetrated
from bottom
Touched
bottom
Touch another
layer from bottom
Density
Neutron
Resistivity
Model
resistivity
Model GR
GR
X,000
X,700
X,300
X,300
X,600
X,600
X,900
X,200
X,500
X,800 X,100
X,400
X,700
Density dips
Reservoir
Top reservoir
True horizontal length, ft
T
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u
e

v
e
r
t
i
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a
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h
,

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t
1.5 general up dip
X,000
This model, with imported higher resolution
log data and an azimuthal image with
overlaid dips represented in green, was
used to verify structure model and well
placement. The green strike angle agrees
and confirms the modeled formation dip.
(Images courtesy of Schlumberger)
36-39 Uncon-SLB_Layout 1 1/23/11 6:49 PM Page 36
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38
UNCONVENTIONAL
RESOURCES
Recently, efforts to increase well recovery rates have
focused on extending the lateral section and reducing
stage lengths in a well. A study of more than 125 wells
running production logs showed that almost one-third
of the perforation clusters in a number of these shale
plays provided a negligible amount of production.
Comparing the production results of the average and
exceptional producers, a 33% increase in contributing
perforation clusters can increase initial gas production
as well as EUR by up to 25%. Perhaps the most efficient
way to increase the number of contributing perforation
clusters is to incorporate key LWD measurements into
the BHA while drilling.
Well placement key
Steering a well with a gamma ray-only measurement can
lead to erroneous reservoir interpretations, inconsistent
well production, and incorrect mapping of reservoir
properties and reduced EURs.
Understanding and grouping physical properties of
areas near the well bore optimizes the fracturing cam-
paign and thus enhances production from all perfora-
tion clusters.
By employing proprietary geosteering software, it was
possible to build a 3-D structure property model from
the Eagle Ford pilot wells logging data. The software
was able to import a section from the model and use it
to represent the formation dip and thickness, including
faults and formation pinchouts. In this case the model
was correlated with azimuthal images acquired during
washdown. The modeled dip and formation thickness
were adjusted so that the structure model agreed with
logs and borehole images. This duplicated the process
for real-time geosteering.
This well was steered in real time using only an aver-
aged, non-azimuthal gamma ray curve. Using this single
measurement, the resulting interpretation concluded
that the well had been placed in the middle of the reser-
voir and drilled into an interbedded lens along the lat-
eral. The well was then dropped in angle to exit the
lens. Employing post-drilling LWD measurements, a
modeled interpretation was constructed. This model
showed that the well had landed high in the reservoir
and consequently exited the reservoir. The latter inter-
pretation was verified by overlaying azimuthal images
used to interpret dips. Using these images provided
confidence in an alternative
interpretation that was later rein-
forced by production results.
Optimizing drilling
LWD tools also can help optimize
the drilling process, providing
added sensors for detecting
shock, monitoring annular pres-
sures, and identifying sweet spots
or hazards. In addition, LWD
solutions can be cost-effectively
employed to deliver real-time
azimuthal data for formation
evaluation in wells with high-
angled trajectories.
Some have argued against
LWD, citing costs of both the
service itself and the potential
risk of high lost-in-hole (LIH)
cost. But in addition to improv-
ing ROP and the additional pro-
duction outweighing the
marginal added-service costs,
LWD lowers drilling risk by
allowing operators to monitor
downhole drilling mechanics
data that can identify borehole
A plan view of the wellbore trajectory shows microseismic events from hydraulic fracture mon-
itoring. The red/blue curve on top indicates the fracture gradient displayed in dynamic range.
Lower green/purple curve indicates brittleness. The circles indicate microseisms from different
pumping stages. Microseismic data from the field clearly show that while the perforations
were placed into the brittle high-stress interval, the fractures actually diverted into the
nearby low-stress interval.
39
stability problems. It can be noted that no LIH events
have been recorded in more than 50 shale gas wells
employing advanced LWD techniques in laterals at the
time of publication.
Additionally, real-time LWD azimuthal images can
provide high-resolution structure mapping through
improved depth matching of horizons. This assists in
defining subsequent drilling targets in the play by
improving the precision of the landing depth reference
and thus enhancing an understanding of structure
undulation and property variation.
Finally, the compressional, C-66 horizontal and C-55
vertical shears, and Stoneley measurements obtained
from the LWD sonic tool enable direct calculation of the
vertical and horizontal mechanical rock properties along
the lateral. The computed outputs of elastic moduli,
Poissons ratio, unconfined compressive strength, and
minimum horizontal stress gradient are then used to
enhance completion design via stage selection of similar
stressed rocks, improved perforation cluster placement
in the stages targeting the lowest stressed intervals, or by
avoiding stage selection of non-productive intervals.
In addition to the Stoneley measurements use as a
source for the C-55 vertical shear, it is also employed to
identify and characterize borehole fractures via reflec-
tion analysis. Knowing whether fractures are open or
healed is another critical input into completion design.
It is critically important to quantify the mechanical
properties in these highly anisotropic environments
because of all of the rock proper-
ties correlating to enhanced pro-
duction; they are the most variable
along the lateral. Microseismic
data from the field clearly show
that while the perforations were
placed into the brittle high-
stress interval, the fractures
actually diverted into the nearby
low-stress interval.
Unfortunately, without direct
access via correctly placed perfora-
tions, near-well pinch-out in the
high-stress rock will likely constrict
the perforation channels, reducing
or eliminating production in this
stage. Total stage length and perfo-
ration cluster placement should be
based on similar rock properties,
similar stress, and hazard avoid-
ance such as swelling clays.
Bottom-line results
LWD data also can be used to optimize frac stage design.
The data are used to identify stress variability within
each stage and across the well, avoid stimulating faults
that can produce water or other hazards, target free gas,
exploit fractures, and prevent swelling clays. These data
assist in grouping like rock properties so perforations
can be placed strategically to optimize production,
avoiding faults while exploiting fractures.
A comparison of three-month production rates from
similar wells placed at the beginning of field develop-
ment shows significant improvement using LWD tech-
niques. As always, there are some caveats. Exceptions to
the assumptions presented can be the result of substan-
tial variations in far-field formation properties that do
not show up near the borehole. Thus, it becomes critical
to further integrate post-production data with the entire
field, including offsets, laterals, and the far field.
Increasingly, using LWD tools for real-time formation
evaluation in horizontal shale gas wells is proving cost-
effective, especially as industry moves away from the
standard of using them not just to define a reservoir but
to a new paradigm of full integration that includes com-
pletion design.
This article is based on paper SPE 139007-PP, Unlocking the
Secrets for Viable and Sustainable Shale Gas Development, pre-
sented at the SPE Eastern Regional Meeting held in Morgan-
town, W.Va., Oct. 1214, 2010.
UNCONVENTIONAL
RESOURCES
3 Months BOE Cumulative Production
75% increase
These wells drilled utilizing LWD have
produced $1 million more revenue per well
after 3 months
3

m
o
n
t
h
s

B
O
E
60,000
50,000
40,000
30,000
20,000
10,000
0
A B C D E F G H I J K L M N O
GR drilled laterals
LWD drilled laterals
Of 15 drilled wells, those employing LWD for well placement produce 75% more than the 10
that were placed using non-azimuthal gamma ray. Only one of the wells placed with LWD
produces below average.
T
he global emergence of the unconventional gas boom
created significant buzz within the energy industry in
2010. Often referred to as a game-changer, gas-rich
shale plays have transformed the dynamics of the energy
industry across North America. The unconventional gas
phenomenon appears to be going global, with Europe,
the Middle East, India, and China clamoring to develop
their own shale or tight gas resources.
Unconventional resources are not, however, limited
solely to gas. Indeed, in the next 10 to 20 years, as conven-
tional oil production begins to flatten (and even starts to
decline), unconventional oil production from heavy oils
and oil-bearing shales will become an increasingly impor-
tant source of supply.
Microseismic (sometimes referred to as passive seismic)
monitoring has received great attention in recent years
for its ability to provide images of subsurface hydraulic
fractures. Event locations associated with each fracture
are mapped in real time, providing operators with 3-D
images of fractures as they propagate through the forma-
tion. Engineers and geophysicists use this information to
make real-time adjustments to the operations as well as to
better plan future frac stages or well locations. However,
microseismics can go far beyond merely identifying loca-
tions of individual fractures and can be applied across a
wide array of unconventional resource applications.
Optimizing thermal, EOR operations
As one of the worlds only designers of microseismic-spe-
cific instrumentation, ESG Solutions has been successful
at transforming a short-term fracture mapping technique
into a powerful, cost-effective reservoir monitoring tech-
nology. Heavy oil or partially depleted conventional reser-
voirs often require some form of stimulation to mobilize
the oil. When steam is injected, it creates fractures and
stress changes within the reservoir, which are manifested
by a release of seismic energy. Multilevel sensor arrays of
geophones or accelerometers can be deployed in a cus-
tom configuration both on the surface and in observation
wells. These sensors are deployed strategically to detect
and locate the seismic activity associated with the reser-
voirs response to the injection. Detected seismicity is digi-
tized by microseismic data acquisition units attached to
the sensors, and the microseismic data are relayed back to
a central onsite location, where they can be processed in
real time.
Microseismic reservoir monitoring systems are used
to optimize thermal recovery or enhanced oil recovery
(EOR) operations. The events associated with the steam-
ing injections are mapped in time and space to allow
reservoir engineers to visualize where the steam migrates
and how it is moving through the reservoir. Steam cham-
ber growth can be mapped, and adjustments can be
made to steaming programs to target any identified
regions of bypassed oil. Operators can use the data
combined with estimates of stimulated reservoir volume
to visualize regions of the reservoir that are effectively
stimulated and are contributing to production.
Microseismic reservoir monitoring also can be used for
reservoir characterization and environmental monitor-
Advanced microseismics optimize
unconventional development
Microseismic analysis is moving beyond the mapping of single fractures,
providing a wealth of information about complex reservoirs.
Shan Jhamandas, ESG Solutions
Combined with estimates of stimulated reservoir volume, opera-
tors can visualize regions of the reservoir that are effectively
stimulated and are contributing to production. (Images cour-
tesy of ESG Solutions)
40
UNCONVENTIONAL
RESOURCES
40-41 Uncon-ESG_Layout 1 1/22/11 9:02 PM Page 40
41
ing. Pre-existing fault and fracture networks
might influence EOR or thermal injections,
causing potential leakage or serving as fluid-flow
pathways. Microseismic monitoring can be used
to identify the reactivation of networks or struc-
tures that could cause the injection to migrate
away from its target zone.
Similarly, microseismic systems installed in the
reservoir can be used to monitor caprock or seal
integrity, providing engineers with advanced warn-
ing of a breakout if the injection is observed to
migrate vertically toward the surface.
Many producers have adopted microseismic
monitoring to reduce the risk of blowouts caused
by casing failures. Higher pressure steam injections often
cause the reservoir to undergo periods of dilation and
compaction, subjecting well casings to considerable ten-
sile stresses. The frequency characteristics of a well casing
shear can be characterized, enabling operators to react
immediately to potentially hazardous events.
The future of microseismics
Now that the energy industry generally has accepted the
benefits of microseismic analysis (particularly in the shale
gas application), it is important to further develop the
value that advanced microseismic analysis can offer. The
next logical steps are to move beyond the idea of simply
plotting individual event locations and instead focus on
groups of microseismic events and look at how they can
describe the behavior of a complex unconventional reser-
voir. Advanced geophysical analysis such as seismic
moment tensor inversion (SMTI) can characterize micro-
seismic events by their specific failure type, allowing engi-
neers and geophysicists to learn exactly how the reservoir
rock is breaking. By understanding which fractures within
the reservoir are shearing (non-opening) versus those
that are isotropic (fractures that open up the rockmass
and create volume-related changes), producers can better
understand which areas of the stimulation are enhancing
permeability and will contribute positively to increased
resource production. SMTI analysis gives operators the
ability to create 3-D maps of open fracture networks and
determine reservoir permeability.
Advanced microseismic analysis should not, however,
be used in isolation. The key to unlocking true value
through microseismics is to integrate the technology
with other available information such as engineering
and geological data. For example, SMTI analysis can be
integrated with pumping, pressure rates, and other
treatment information to understand how different
stimulations are affecting the reservoir.
By examining k-T plots, information about fracture
growth and fracture failure mechanisms related to the
pumping program can be obtained, and the influence
that different fluid packages have on different formations
can be observed. For example, the results of a slickwater
fracture conducted in a tight gas play in Western Canada
can be illustrated by a k-T plot. In this example, as the
sand is introduced into the fracture, the events domi-
nantly represent opening failures, suggesting that the
proppant is being successfully introduced into the frac-
ture. Another k-T plot depicts an energized CO
2
fracture
conducted in a shale play in Western Canada. As the CO
2
injection rate reaches 2 cu m per minute, the k-T plot dis-
plays a dominance of explosive failures, indicating that a
substantial volumetric change has occurred and complex
fracturing likely is taking place. These are examples of
how different unconventional formations might react to
different treatments. The microseismic analysis can be
used to validate the engineering process and calibrate
geomechanical models that can be used to forecast reser-
voir response to subsequent stimulation programs.
Microseismic science continues to evolve as the
industry moves into a new era of examining the
technology as more than simple event locations on a
map. The use of microseismics in different applications
and different contexts will be
instrumental in helping to gain
insight into how to optimize
production from complex but
important unconventional
resources.
k-T plots are used to identify the manner in which the rock
is fracturing as well as the influence that different stimula-
tion programs could have on unconventional formations.
For more
Unconventional
Resources articles, visit
EPmag.com
40-41 Uncon-ESG_Layout 1 1/22/11 9:02 PM Page 41
42
RESERVOIR
CHARACTERIZATION
R
obust (in terms of describing what is there) and
reliable (in terms of reservoir predictability) reser-
voir models are crucial elements of the reservoir charac-
terization workflow. If these models fail, decisions based
on them are likely to cause reduced field productivity
and in the worst-case scenario, misplaced wells.
One of the key industry challenges currently facing
reservoir engineers is updating an existing model to main-
tain model reliability whenever new data are acquired.
Another challenge is to determine how to efficiently lever-
age all available data throughout the modeling process.
One key element of this is the integration of seismic
data. Whether for exploration or production purposes,
integration often is harder to achieve than it needs to be.
As more and more seismic data become available,
along with advanced techniques for extracting geologi-
cal information from it, it is increasingly important for
modeling software to be able to integrate these data
quickly and easily.
The importance of property modeling
Property modeling is one area where seismic data can be
combined with other data such as well data to generate
accurate and well-constrained reservoir models.
Using seismic in property modeling, however, is not
straightforward. Scale can be a challenge. The resolution
of the seismic data normally is too coarse to resolve the
true geometries of the heterogeneities, and uncertainty in
depth can make it difficult to represent wells correctly. It
is an uncertain and less well-understood area below the
limits of seismic resolution but above the optimum scale
for probabilistic modeling.
To meet this challenge, a new object-based facies mod-
eling tool has been developed as part of Roxar RMS2010.
The new tool Sedseis can incorporate information
derived from seismic directly into the facies model,
bridge the gap between the seismic scale and the scale
relevant to stochastic techniques, and ensure seismic data
are integrated quickly and easily into the reservoir model.
This is achieved by blending data extracted from seis-
mic with geostatistical tools such as guide lines and
trends to generate well-constrained sedimentary bodies.
This ability to bridge the gap between both determinis-
tic and statistical techniques gives the modeler access to
the gray area between seismic resolution and data-con-
strained statistical modeling, resulting in a more realistic
property model conditioned to well observations and
with accurate volume calculations.
The nature of the model varies depending on the qual-
ity of the seismic data and the degree of the detectability
of the sedimentary body. For example, with high levels of
detectability, the whole seismic body can be extracted
with upper and lower bounding surfaces and a complete
definition of the body geometry. However, when this level
Bridging the resolution gap
Better reservoir modeling tools lead to better decisions.
Tyson Bridger, Emerson Process Management
Thickness information is taken from wells or seismic attribute
maps. (Images courtesy of Emerson Process Management)
42-45 ResCharacter-Roxar_Laout 1 1/22/11 9:09 PM Page 42
of seismic data is not possible, the new tool also can incorporate thickness
maps derived from seismic attributes or even from as little information as a
polygon defining a lateral body position.
Since the uncertainty of the model increases as the seismic resolution
decreases, the extraction of seismic on a sliding scale of detail allows the exten-
sion of more certain models into previously unconstrained scales of modeling.
This new technique is ideal when sand bodies can be identified from seis-
mic attributes. The location of the sand objects can be defined simply by digi-
tizing a polygon, using a set of points defining the geobody, or using a top
and base map. The vertical shape of the objects can be described using the
same tool used for object modeling with thickness information taken from
wells or from seismic attribute maps.
The extracted data from this new object-based facies modeling tool is used as
input to stochastic object modeling techniques, supplying a deterministic con-
straint on the stochastic process. The result is higher resolution, a far more
constrained and reliable model, and the efficient leveraging of seismic data.
Multipoint statistics
A second addition to the property modeling toolbox and another facies mod-
eling tool for the reservoir modeler is a multipoint statistics (MPS) tech-
nique. Using a pixel-based (grid cell by grid cell) approach for building
stochastic facies realizations, MPS allows the reservoir engineer to condition
3-D training images of the interpreted heterogeneities in the reservoir in
addition to wells and seismic.
While other approaches might struggle as the number of wells increases
and the quality of the seismic data is improved, MPS actually improves in
performance.
A facies probability function has been generated based on a seismic attribute
and well observations with the shape of the objects taken from a 3-D training
image. The lower part shows the results as objects are located where the proba-
bility is high, the shapes of the sand bodies are realistic, and the wells are repre-
sented correctly.
New ways of storing, visualizing seismic data
New ways of storing and visualizing seismic data also need to be developed
for high-quality seismic data to become an integral element of the reservoir
Improved visualization capabilities aid the interpreter in making better decisions.
Coil Shooting
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full-azimuth (FAZ) acquisition
and imaging delivers the most accurate sub-
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44
RESERVOIR
CHARACTERIZATION
modeling and characterization workflow, and for the
existing model to be easily updated whenever new data
are required.
Efficient handling of seismic data will not only provide
new ways for performing quality control on the struc-
tural models but also will open up new functionalities
and workflows that significantly speed up the modeling
process and the quality of the model.
With this in mind, the latest module comes with
improved functionality for importing, visualizing, and sam-
pling seismic data to and within 3-D grids. Enhancements
include the ability to handle large seismic cubes and the
seamless importing of both 2-D and 3-D seismic data.
During the importing, data are transformed into a com-
pact representation that is optimized for visualization and
calculations while preserving the precision of the original
data. Furthermore, the advanced compression when
loading means there is no need to clip and scale the data.
Once the data have been loaded and the project has been
saved, the reservoir modeler does not require access to
the original SEG-Y files.
There also are vastly improved visualization capabili-
ties when comparing the two models.
In addition, the new seismic module provides fast
and accurate visualization of seismic datasets. Options
include the ability to generate probes of any shape
slices, boxes, or tubes as well as probes from multiple
sets of seismic data and other data types such as 3-D
grid parameters and velocity models. Furthermore, fully
interactive opacity control and color manipulation capa-
bilities provide many possibilities for inspecting data.
Powerful seismic tools also are available for converting
both grid parameters and velocity models to volume
data, allowing the interpreter to visualize any grid
parameters and velocity models for further use in
property modeling. Data also can be converted from
time to depth in one step using either a velocity model
or a velocity cube as input.
Finally, throughout the reservoir modeling process,
the interpreter can go back to seismic data at any time
and verify that correct decisions were made.
It is this quick and easy integration and leveraging of
seismic that ensures robust
and reliable models,
improved decision making,
more justifiable invest-
ments, and improved field
performance.
MPS is used on high-quality seismic data.
For more Reservoir
Characterization
articles, visit
EPmag.com
42-45 ResCharacter-Roxar_Layout 1 1/23/11 6:57 PM Page 44
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RESERVOIR
CHARACTERIZATION
R
adioactive isotopes emitting ionizing radiation are
used in a wide range of applications in the petro-
leum industry, from exploration and production to plat-
forms to refineries. Downhole tools using such sources
provide the most accurate estimate of porosity, arguably
the most important petrophysical parameter. However,
following the tragedy of 9/11, the use of radioactive
sources in various industries has come under increased
governmental scrutiny due primarily to their potential
for radiological dispersal devices (RDD). Consequently,
the regulatory regimes are being tightened, and indus-
trial users of sources are being urged to develop alterna-
tives. The petroleum industry is actively engaged in this
dialog and is assessing alternatives.
Radioactive sources in E&P
Cs-137, used in formation density tools, and Am-241,
used in the Am-Be source in neutron porosity tools, are
the most significant radioactive isotopes in upstream.
Density tools provide the porosity to within 1 porosity
unit (pu), while (NMR) and acoustic tools, often sug-
gested as alternatives, could have a 2 pu to more than
4 pu error. Neutron porosity tools determine the fluid-
filled porosity and help identify the lithology. Two serv-
ice companies also use the Am-Be sources in their
capture spectroscopy tools to generate mineralogical
information. Density and neutron porosity data together
provide the classic gas signature.
In addition, frac-pack monitoring tools are generally
based on several hundred microcuries of Am-241, and
the Am-Be source used in wireline neutron porosity
tools has also been used for such monitoring.
The absence of nuclear log data would result in
increased uncertainty in reserves estimates, an even
greater uncertainty in the deliverability estimate, inaccu-
rate lithology analysis, less desirable well placement, etc.
For example, in a 30-pu reservoir with a nominal reserve
of 1 MMbbl, the NMR and acoustic porosity uncertain-
ties noted previously would lead to a reserves uncer-
tainty of from 66 MMbbl to 148 MMbbl if these were the
only porosity measurements available. In contrast, the
reserves uncertainty would be only 33 MMbbl if density-
based porosity was used. For lower porosities, the rela-
tive uncertainty would be much
greater. Increased uncertainty in
deliverability estimates would result
in completing more uneconomic
wells. In the Gulf of Mexico, com-
pletion costs could be US $120
million. Increased uncertainty in
lithology can lead to errors in well
placement, increase environmental
issues, and possibly compromise
safety. Thus, non-nuclear alterna-
tives are inadequate.
Well logging source
safety, security
Nuclear logging tools are robustly
built, with almost no chance of
radioactivity release under normal
Radioactive sources are
vital yet challenging
Radioactive sources provide the most accurate measurement of porosity,
but their use is causing increasing concern. Could the quest for alternative sources
lead to a quantum leap in technology?
Ahmed Badruzzaman, Chevron Energy Technology Co.
Several radioactive isotopes are used in the petroleum industry. (Ci stands for Curie, the
older unit of radioactivity generally used in the US. 1 Ci = 3.7 x 10
10
disintegrations/sec of
the radioisotope. The newer unit is Becquerel (Bq). 1 Bq = 2.703 x 10
-11
. Ci, or 1 GBq = 27.03
mCi.) (Figures courtesy of Chevron; table adapted from SPE paper 123593, 2009)
Application Radioisotope Half-life IAEA Source Health
Activity (yr.) Category Effect
Density Cs-137 30 3 Permanent injury
1.5- 2.0 Ci
Neutron porosity Am-241 433 2-3 Death/
8-23 Ci permanent injury
Frac-pack Am-241 433 3-4 Permanent/
monitoring 300 Ci-16 Ci temporary injury
Vessel or Cs-137 30 3-4 Permanent/
pipeline gauges 0.135 Ci-2.7 Ci temporary injury
Inter-well tracer Kr-85 10.76 3 Permanent injury
1000 Ci
46-49 ResCharacter-Chevron_Layout 1 1/24/11 10:10 AM Page 46
47
RESERVOIR
CHARACTERIZATION
oilfield operations. The Cs-137 source is in a glass matrix
and is doubly-encapsulated in steel. The tool is designed
to withstand pressures of more than 25,000 psi and
302F (150C). The neutron porosity tool is designed
with similar robustness. LWD tools contain both the
neutron and density sondes in the same assembly, but
the Am-Be source in the LWD tool has half the radioac-
tivity of its wireline counterpart. Since these sources are
in the drill string, a special mechanism is used to secure
the sources in place to prevent them from falling down
the hole and being penetrated by the drill bit.
International Atomic Energy Agency (IAEA) guide-
lines, European Union protocols, and national regula-
tory bodies prescribe standards for the handling of all
radioactive sources. Government licenses are required
for access, transport, and use of radioactive sources. In
upstream operations, service companies are typically the
licensees, while in refinery applications operators are
generally the licensees.
Protocols to handle a specific source are determined
by the IAEA Categorization of sources based on type,
the amount of radioactivity, the application and dura-
tion of exposure, and overall health risk. Category 1 and
2 sources can cause death, whereas Category 5 sources
may produce minor, temporary injuries. Sources used in
the petroleum industry range from Category 2 to Cate-
gory 4, with sources used in well logging tools for reser-
voir characterization posing the most risk. Strict security
and safety protocols are used for storing and transport-
ing sources. Special shielded containers are used for
transporting sources. Only authorized personnel using
specific protocols can access sources.
Challenges with E&P sources
Despite robust design, regulatory safeguards, and the
much lower level of radioactivity than sources used in
many other industries, well logging sources pose unique
challenges and potential for misuse in an RDD. These
sources are shipped around the world and often are used
in remote locations. Approximately 9,000 well logging
sources are in the field worldwide. No RDD incident has
occurred, but in 2003, a logging tool source that was lost
in Africa was found in Europe with an unclear trail. In
2009, a density source was stolen from a service company
facility in South America by an ex-employee who was
later apprehended and the source recovered. In Califor-
This schematic of a formation density tool shows the source well
protected from the elements. (Adapted from Ellis, Well Logging
from Earth Scientists, 1987).
Nuclear LWD tools have a greater margin of error when measur-
ing porosity. (Holenka et al., Azimuthal Porosity While Drilling,
SPWLA, 36th Annual Logging Symposium, Paris, France, June 26-
28, 1995, Paper BB.)
46-49 ResCharacter-Cheron_La!out 1 1/22/11 9:15 PM Page 47
48
RESERVOIR
CHARACTERIZATION
nia in 2006, a stuck density source was breached down-
hole, requiring the appropriate disposal of contaminated
mud, lost production, and implementation of a 300-year
monitoring program by the operator.
Government and industry initiatives
Governments have instituted stricter control of sources.
The US national source tracking system tracks the move-
ment of Category 1 and 2 sources. Currently, 107 Am-Be
sources are being tracked, and discussion has been
underway to include Category 3 sources in the system.
In 2009 the US Department of Energy partnered with
six petroleum service companies -- Baker-Hughes, Hal-
liburton, Pathfinder, Schlumberger, Tucker, and Weath-
erford -- to develop a voluntary source security training
document and video, Security and Control of High-
activity Well Logging Sources Guidelines. Additional
procedures for access to a source site or storage box
were recommended, including two-person access as
opposed to current industry practice of access by a sin-
gle authorized individual.
Until now, well logging source safety practices have
been based on service company protocols. As a lesson
learned from the lost- and breached-source incidents
noted previously, a recent SPE paper recommended that
operating companies adopt their own source safety and
security protocols. The protocols should include, 1) doc-
umented procedures for both source receipt at the oper-
ator site and return to vendors, 2) a clear decision chain
to handle source incidents, 3) designation of a key con-
tact on source issues at the business unit level, and 4)
training of appropriate operating company personnel.
The key tenet on stuck sources must be that if a source
cannot be retrieved using normal procedures, cement it
in; DO NOT take extraordinary measures to retrieve it.
Alternative nuclear sources
Industry and governments are investigating the use of
alternative sources that pose lower risk. The SPWLA
Nuclear Logging Special Interest Group has been dis-
cussing the development of alternatives. Two generator-
based neutron porosity tools, one wireline and one LWD,
have been developed as an alternative to Am-Be sources
and are increasingly being used. A generator-based neu-
tron spectroscopy tool also was developed recently.
In its 2008 report to the US Congress, the National
Academy of Sciences recommended consideration of 14-
MeV neutron generators (which are switchable and can
penetrate deeper) or
the lower activity Cf-252
isotope as alternatives to
the Am-Be source in
neutron porosity tools
by all service companies.
An LWD tool was devel-
oped using Cf-252 with
neutron output compa-
rable to that of an Am-
Be source and three
orders of magnitude
lower radioactivity.
National laboratories are
developing novel genera-
tors which may be of
interest to the petroleum industry in the future.
Concerned only with the RDD potential, the National
Academy did not recommend the replacement of the
lower risk Cs-137 source used in density tools. However,
the industry should explore alternatives because of
the possibility of contamination from a source that is
breached during drilling operations. A linear electron
accelerator-based photon source borehole density
device was built and tested in the early 1980s but was
not commercialized. Renewed research on such elec-
tronic photon sources for density is underway. In
addition, pseudo density, obtainable from photons
generated by high-energy neutrons interactions, has
been proposed as an alternative by several investigators.
A generator-based LWD tool can supply pseudo density,
but the concept is complex, and considerable effort
would be required to approach the accuracy of the
direct photon-source density.
Challenges, opportunities
in source replacement
Efforts to replace sources face a number of technical,
logistical, and financial challenges. Radiation generators
Special containers are used to transport radioactive well logging sources (neutron, left, and density,
right). (Original figure courtesy of Halliburton, adopted from SPE Paper 123593, 2009.)
49
RESERVOIR
CHARACTERIZATION
require an external power source, have a finite life, and
are prone to failure. The short half-life (2.65 years) of Cf-
252 would require frequent replacement of the isotope
and recalibration of the tool. Interpretation issues, includ-
ing changed porosity and lithology sensitivity, would result
from replacing current sources because of the physics dif-
ferences. A physical swap of sources in a tool would be
insufficient, and design and interpretation changes would
be required.
Despite the ability to calibrate and assess new nuclear
tool designs by using computer simulation, considerable
laboratory calibration and vendor field tests followed by
user field validation would still be required and may not
guarantee an acceptable performance. Users would have
to adapt to new calibration charts and possibly develop
new correlations for the tools response to geology. Years
of experience with a tool in a given field may be needed,
especially if the physics is significantly different. Address-
ing the above challenges, from design to user acceptance,
could take a decade or more.
Designing new
tools using novel
hardware would
involve complex
R&D and would be
an expensive and
long-term endeavor.
A 2010 Interagency Taskforce of the US government has
recommended support for such R&D.
The above challenges to achieve lower risk nuclear
logging tools are also an opportunity for a quantum leap
in the technology. New tool concepts with appropriately
calibrated novel sources (and detectors) could allow bet-
ter mineralogy description and simultaneous interpreta-
tion of multiple petrophysical parameters.
To expedite the process, a collaborative effort between
service companies, operators, national laboratories, and
universities is under discussion.
Acknowledgements and references available.
EPmag.com
READ MORE ONLINE
There is more
to the story
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T
he influx of tailored tools has
helped operators improve well con-
struction efficiency, reduce drilling
costs, and maximize production. To
continue this trend, the industry has
renewed its focus on improving hori-
zontal drilling performance through
shale formations. Analysis of several
shale plays has revealed that PDC bit
profile plays a major role in increasing
performance. While the industry has
successfully increased on-bottom ROP,
thereby reducing drilling time and
costs, it also must reduce flat time
between successive bit runs.
Application challenge
The unique extended-reach horizon-
tal shale drilling application has cre-
ated a new set of specific challenges.
Smith Bits, a Schlumberger company,
has extensive experience drilling long
horizontal sections through sand and
limestone, and the logical tendency
was to continue the established trend
of using matrix body PDC bits for
shale applications. However, early in
the campaign it became clear that
matrix body PDC bits did not perform
to operator expectations in the new
environment. After field and labora-
tory analysis, engineers identified sev-
eral key issues, including bit balling,
directional behavior, and tool face
control responsible for premature
bit failure that prevented operators
from optimizing horizontal produc-
tion zones.
New shale PDC bits
From the drill bit perspective, the prob-
lem was solved with a fundamental
steel-body approach to PDC drill bit
design and optimization. Historically,
steel-body bits have been aimed at low-
cost/low-profile applications with little
difference between models and practi-
cally no ability to upgrade the technol-
ogy for a specific application. This has
changed with the introduction of
Smith Bits new Shale PDC Bits.
With well-defined goals and a thor-
ough understanding of the application,
design engineers and material special-
ists re-examined steel-body PDC bits.
It was apparent that the steel body
would allow designers to successfully
address application challenges and
provide a cost-effective shale PDC
bit solution.
Manufacturing bits from steel gives
greater flexibility in the design criteria
and allows increased blade heights to
optimize the overall blade/body config-
uration for shale drilling. Due to the
generation of large amounts of cut-
tings, it was critical that the body geom-
etry be configured for their rapid
evacuation. This poses additional chal-
lenges on the steel body as drilling
mud entrained with cuttings can cause
steel erosion. The problem was solved
using advanced computational fluid
PDC bits optimized
for shale development
With the rapid increase in drilling activity in North Americas unconventional
shale plays, there has been a significant push to develop application-specific
technologies to increase economic feasibility.
Steven Segal, Smith Bits
The Shale PDC bit body design and material
improve cuttings evacuation and reduce
shale packing during connections and overall
short makeup length to achieve desired dog-
leg severity. (Images courtesy of Smith Bits)
50
DRILL BIT
TECHNOLOGY
50-51 DrillBit-SmithSLB_La!ot 1 1/22/11 9:17 PM Page 50
51
DRILL BIT
TECHNOLOGY
dynamics that simulated the at-bit flow regime to ensure
precise nozzle placement and orientation along with
blade contour angles to optimize fluid flow at, along,
and above the bit.
Further improvements were made to the specialized
hardfacing materials that help protect the steel from the
erosive drilling fluid. This focused engineering effort
has improved bit life in the horizontal section, allowing
operators to drill an entire section with one bit run.
The new extended-reach shale application created an
additional challenge for the drill bit: successfully maneu-
ver the drilling assembly horizontally through the shale
formation. The use of the positive displacement motor
became essential in drilling these wells. Effective tool
face control is critical so drillers can effectively steer
the bit within the shale formation. Previous bits had
steerability issues that led to loss of directional control,
resulting in poor borehole quality.
Predicting performance
The solution to optimize directional bit behavior was
accomplished using Smith Bits 4-D simulation and
modeling tool IDEAS to accurately predict drill bit and
bottomhole assembly performance. Using advanced
computer workstations running detailed finite element
analysis, the modeling tool analyzed the entire drill-
string from bit to rig floor. This allowed the design engi-
neer to fine-tune the cutting structure by optimizing
blade geometry, cutter positions, and overall length of
the bit, delivering maximum ROP potential while ensur-
ing the smooth directional response required to success-
fully complete the well.
Performance results
Combining and updating technology has led to a
step change in shale drilling performance. The new
bits are setting new performance benchmarks in the
Haynesville, Marcellus, and Eagle Ford plays.
In the Marcellus application, the target ROP goal for
drilling the horizontal leg with an 8
3
4-in. bit was 50 ft/hr
(15 m/hr). Using the advanced modeling/simulation
package, the bit was designed for the application and
run successfully, achieving ROPs in excess of 65 ft/hr
(20 m/hr), a 30% improvement over the operator-set
target. In the Haynesville, a new 6
3
4-in. steel-body PDC
bit has been drilling horizontal sections in a single run
at ROPs that are 10% to 20% faster than the best offset
performance.
The new generation of steel-body PDC bits is allowing
operators to reduce costs and increase overall drilling
efficiency in a variety of North American shale
applications.
Computational fluid dynamic analysis enhanced cutting structure/bottomhole cleaning (left), cutting cooling and cuttings evacua-
tion and recirculation avoidance (right).
50-51 DrillBit-SmithSLB_Layout 1 1/23/11 7:14 PM Page 51
O
ver the past 100 years, many technologies have had
significant impact on the drilling industry. The
rotary rig, rolling bits, top drive, and PDC bits are some
of the revolutionary technologies that have changed the
way operators drill wells. In the same spirit, Baker
Hughes Inc.s Kymera represents a legacy of technology
innovations by introducing a game-changing drill bit.
As operators strive for reserves in more difficult,
demanding applications, drilling to reach them has
become an even greater challenge. For example, com-
plex well profiles, hard and interbedded formations,
and rig or equipment limitations increase the potential
for shorter runs, cause expensive tool damage, and ulti-
mately reduce operator profitability. While PDC per-
formance has improved significantly, it still is subject to
dynamic inefficiencies in terms of
higher torque fluctuations and overall
level of torque generated. Similarly,
enhancements in roller cone technol-
ogy could provide improvements in
ROP or overall footage, but continue to
be burdened with the inherent limita-
tions of the technology.
New bit design
Kymera hybrid drilling technology is a
paradigm shift in innovation, a coales-
cence of roller cone and PDC bits into a
single, patented design. The result is a
technology designed to exploit the best
attributes of each bit type, bridging the
gap between them. With the cutting
superiority and continuous scraping of
diamond bits and the rock-crushing
strength of roller cones, this repairable
bit has proven to survive highly
interbedded formations with smooth
drilling and excellent tool face control.
Laboratory tests and field performances confirm
benefits of the combined technology.
Compared to PDC bits, Kymera has:
Lower and more consistent drilling torque;
Better dynamics and directional control;
Improved durability and reliability in interbedded
formations; and
Less torsional vibration (stick/slip).
Compared to traditional roller cone bits, it has:
Increased rate of penetration (ROP) potential;
Less axial vibration (bit bounce); and
Lower weight on bit requirement.
In key 12
1
4-in. US applications, collaborative efforts of
the customer and Baker Hughes teams have resulted in
drilling rate improvements of up to 62% with single bit
run lengths extended by more than 200%, shaving days
off standard well times. Around the globe, the phenom-
enon is beginning; Kymera has been run in six countries
Hybrid bit technology
finds new ground
Early concepts of hybrid bits were researched in the early 1930s, but were deemed
impractical and even unreasonable; only recently using 21st century
advancements has the myth become a reality.
Tisha Dolezal, Baker Hughes Inc.
ROP and surface torque generated by a PDC is followed by a Kymera bit. As the graph
shows, the PDC bit produces a higher overall level of torque and greater torque fluctua-
tions. Immediately after the PDC, the Kymera follows with a lower, more consistent torque,
resulting in a smoother run at a higher ROP. (Images courtesy of Baker Hughes Inc.)
52
DRILL BIT
TECHNOLOGY
52-53 DrillBi-BakerH!ghes_La"o! 1 1/22/11 9:20 PM Page 52
53
DRILL BIT
TECHNOLOGY
with more than 90 runs, drilling more than 100,000 ft
(30,480 m). It recently debuted in Brazil, where it
drilled 90% faster and 20% farther than offset wells to
replace three roller cones. The 12
1
4-in. tool currently
is available, with availability of other key sizes planned
for 2011.
Positive results in
western Oklahoma
Farther and faster simply stated, this is the goal when
drilling. The primary driver for operators is to reduce
the number of days per well and increase the number
of wells per year. As a result, technologies are pursued
relentlessly to achieve a more efficient drilling program.
The deep Springer wells are the most expensive wells in
the central US, averaging 22,000 ft (6,706 m) total depth
(TD) and 160 to 180 days on well. With the present eco-
nomic climate, Baker Hughes was asked to deliver a
drilling solution that would significantly improve the
number of days on well, targeting a section from Des
Moines through the Atoka shale interval from 10,800 to
16,500 ft (3,292 to 5,029 m).
Offset data confirm that the highly interbedded inter-
val typically requires 82 days to reach TD. During that
time, an average of eight to 10 roller cone bits are con-
sumed, with each bit yielding an average ROP of 9 to 11
ft/hr (2.7 to 3.4 m/hr) and 600 to 800 ft (183 to 244 m)
of depth. Similarly, when drilling with PDCs, the interbed-
dedness of the formation (5 to 20 ksi) creates higher
overall levels of torque and torque fluctuation. This, in
turn, yields an even lower footage gain of 150 to 200 ft
(46 to 61 m) on average and increases potential for pre-
mature failures due to stick/slip.
For these reasons, the Kymera hybrid bit was intro-
duced as a technology specifically suited for this type
of problematic application. In this case, Kymera was
expected to provide ROP greater than offset roller cones,
smoother running, and greater cutting efficiency than
traditional PDCs.
For the interval, Kymera achieved greater ROP and
footage than both roller cone and PDC bits. The hybrid
technology created a more efficient drilling environment,
allowing smooth cutting action and ultimately providing
significant savings, shaving 25 days off the average well
performance and 40% cost-per-foot savings.
Kymera bits replaced an average of eight to 10 roller cones,
shaving 25 days off the well.
52-53 DrillBi-BakerH!ghes_La"o! 1 1/22/11 9:20 PM Page 53
D
eveloping new fields can require multiple wells,
drilled with a factory-like cadence. As the frequency
of wells drilled increases, the value of accurate bit selec-
tion becomes more apparent, and the results of simply
running an off-the-shelf product can limit the ability to
increase well count.
Halliburtons Drill Bits and Services product service
line leverages a global network of drill bit designers,
differentiated by the Design at the Customer Interface
(DatCI) service. The companys Application Design
Evaluation (ADE) service specialists are focused on local
solutions; there is no global triage list that often can pro-
vide important operations with a generic solution. The
DatCI service provides the framework for a solution that
is focused on driving efficiencies into operations by solv-
ing specific bit-related drilling issues.
The Drill Bits and Services arm has approximately 50
ADE service specialists deployed in operations around
the world. The service specialists deliver a local solution
developed collaboratively with its customers through
proprietary DatCI methodology, which provides the
foundation for iterative performance improvements.
These solutions incorporate many tools, including
iBits design software, Direction by Design software (DxD),
and computational fluid dynamics coupled with a global
library of performance data and SPARTA modeling soft-
ware for geomechanical analysis. The coupling of iBits
with DxD softwares ability to model the directional forces
required to steer a bit allows designers to create a cutting
structure that is durable enough to handle tough transi-
tion drilling while maintaining directional control.
The key element in the DatCI process is the service spe-
cialists ability to leverage the tools and to quickly develop
design iterations that improve upon the previous design.
Working at the local level allows designers to understand
drilling challenges in a field as well as physically inspect
bits post-run to identify opportunities for improvement,
leading to higher ROPs and longer run lengths. ADE
service specialists also are linked into the global network,
allowing them to learn from one another and resulting in
a faster learning cycle. The end result of the DatCI process
is a predictable, accurate, and repeatable solution.
Ecuador case history
Working with an operator in the Indillana field in
Ecuador, the challenge was to drill the 12
1
4-in. section in
one run, eliminating two bit runs from the current drilling
curve. This interval comprises two distinct sections, includ-
ing an upper section that previously used two bits due to
the presence of chert in the base of the Tiyuyacu forma-
tion. The hardness and abrasiveness of chert often
required the frequent use of an insert roller cone bit.
The bottom section presented two distinct challenges.
The first 800 ft (244 m) was composed of plastic shales
(Tena formation) that caused bit balling and resulted in
low ROP; the second challenge was an interval composed
of shale and limestone with high compressive strength
Drilling efficiency gains allow
operators to drill more wells
As the quest for new fields and untapped reserves becomes more challenging,
the value of time grows exponentially.
Craig Convey, Halliburton
54
DRILL BIT
TECHNOLOGY
Working at the local level allows designers to understand the
drilling challenges in a specific field and to physically inspect bits
post-run to identify opportunities for improvement, leading to higher
ROPs and longer run lengths. (Image courtesy of Halliburton)
54-55 DrillBit-Halli_Layout 1 1/23/11 7:25 PM Page 54
55
DRILL BIT
TECHNOLOGY
and abrasive sandstone stringers (Napo formation) that
produced high wear on the bit, leading to costly bit trips.
The drilling challenge was to drill the entire interval in
a single run with a fixed cutter bit with a higher ROP and
a better dull grade condition than the current solution,
eliminating bit trips and reducing nonproductive time
(NPT). The wells to be drilled were directional with a J
profile, dropping at 1 degree/100 ft (1 degree/30.5 m).
The 12
1
4-in. section was to be drilled with a fixed cutter bit
through the Tena and Napo formations.
After evaluating formation strengths, drilling parame-
ters, directional profiles, and the dull grading of previ-
ous designs, the local ADE service specialists determined
the application was PDC-drillable with FX Series drill bit
technology. A five-bladed FX56D bit was designed with
an aggressive dual-row cutting structure featuring 19-
mm X
3
Series cutter technology. The dual-row cutter
technology incorporates force management and drilling
dynamics optimization to deliver high ROPs without
compromising bit life. The dual-row cutting structure
reinforces the nose, shoulder, and gage and engages
when primary cutters become worn or damaged. The X
3
Series cutter technology optimizes abrasion and impact
resistance and has greater thermal stability to withstand
the friction head generated during drilling.
In the first well, the FX56D bit drilled 1,351 ft (412 m)
in the 12
1
4-in. section at 58 ft/hr (17.8 m/hr); in the sec-
ond test well, it drilled 1,501 ft (457.5 m) at 56 ft/hr (17
m/hr). These runs beat the field average for the interval
by more than 28 hours and beat the field record by
more than 25 hours, resulting in a savings of more than
US $145,000 per interval.
This solution was the result of Halliburtons local
expert working collaboratively with the customer, focus-
ing on specific drilling challenges. Due to the ADE serv-
ice specialists work, shoe-to-shoe drilling in a difficult
multiformation interval now is possible. The customized
solution reduces NPT and continues to push perform-
ance boundaries within the field.
The DatCI process now will be used in developing a
subsequent solution that will continue to reduce drilling
time. Success required a customized solution.
54-55 DrillBit-Halli_Layout 1 1/22/11 9:21 PM Page 55
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V 1
A
s activity in the Eagle Ford shale play continues
to increase, Varel International has ramped up its
support for the operators in the area with new drill bit
designs to meet specific applications. PDC designers
and field engineers recently have introduced a new five-
bladed Navigator series set of bits in the Eagle Ford with
tremendous success. These designs are the new genera-
tion of Varels product line for directional applications.
The bits have been developed to address the challenges
in the Eagle Ford play, including erosion, gauge wear, and
most importantly, the need for both trajectory holding
and directional responsiveness.
Steerability, directional behavior
Using proprietary design tools, engineers focused on mak-
ing the bits extremely responsive to directional inputs while
maintaining trajectory when drilling ahead. This is accom-
plished by combining a tightly balanced cutting structure
with an aggressive side
cutting capability. The
bits also have combined
features that minimize
torque and torque varia-
tions while allowing for
high rates of penetration.
The result is a product
that builds angle as
required, limits bit walk,
holds trajectory in hole,
and allows for smooth in
the zone drill ahead in
lateral sections.
The bits use Varels
proprietary Vulcan class
PDC cutters, combining
high thermal abrasion
resistance with impact
resistance. These cutters hold up well to wear and impact,
which is imperative with the heavy side load requirements
encountered during the curve and lateral sections of
Eagle Ford wells. This new technology has proven scala-
ble to other bit diameters for Eagle Ford applications with
comparable success.
Single-run performance
In a recent Eagle Ford well in Live Oak County, Texas, the
operators goal was to complete the entire section with one
drill bit. A key concern in meeting the goal was bit durabil-
ity in light of the heavy sideforces the bit would experience
in the curve section of the well. A number of previous
operations used steel-bodied products and saw premature
gauge and shoulder wear due to the loads created by the
directional requirements. The other key concern was the
directional characteristics of the bit, both steerability and
trajectory holding. These issues historically cost valuable
rig time due to tripping and the replacement of drill bits
and components.
Varel field engineers studied previous drilling logs in
addition to extensive dull evaluation reviews. Using earlier
iterations of Varels Navigator technology, the bits were
modified to add shock studs to smooth out torque,
upgraded with Vulcan class PDC cutters, and redesigned
to incorporate ultra-force balancing.
Upon completing the upper section with a 12-in.
Varel PDC bit, the 8.50 VM513H Navigator PDC bit was
run in hole. The bit built the curve, held the tangent, and
then made the lateral section without dropping.
The bit drilled 6,246 ft (1,904 m) to a depth of 11,986 ft
(3,653 m), where the bottomhole assembly was modified
per plan for a 200-hour motor change. Post-run evalua-
tion graded the bits cutting structure at 1-1, and the bit
was returned to the assembly to continue drilling.
With the completion of the run, the bit drilled a cumu-
lative 10,087 ft (3,075 m) to a total depth of 15,827 ft
(4,824 m). The run required very little correction other
than limited corrections made at formation changes.
After 101 hours of drilling and completing the section
with an overall ROP of 37
ft/hr (11.3 m/hr), the bit
was graded 1-4-BT-G-X-I-TD
and met the directional,
durability, and ROP goals set
out for the section.
New PDC designs
produce major successes
Extensive post-run evaluation leads to improved designs and major successes for operators.
Robert Real, Varel International
The newly designed five-bladed Navi-
gator bit was recently deployed in the
Eagle Ford shale. The bit is shown post-
run after drilling a total of 10,087 ft
(3,075 m) and completing all direc-
tional objectives. (Image courtesy of
Varel International)
For more Drill Bit
Technology articles, visit
EPmag.com
DRILL BIT
TECHNOLOGY
56
56-58 DrillBit-Varel_Layout 1 1/23/11 7:35 PM Page 56
Quality equipment that makes your operation wor
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59
DOWNHOLE SYSTEMS
& SOLUTIONS
E
veryone is familiar with Murphys Law, or Sods Law
as they like to call it in the UK. Usually referred to
jokingly, it nevertheless emphasizes a lesson that experi-
enced oilfield hands have learned over the years. Oil
and gas wells can be complex, and with complexity
comes the potential for problems. As Murphys Law says
if anything can go wrong, it usually does so at the worst
time, in the worst place, and when it can cause the most
trouble or damage.
Thanks to technology and the ingenuity of oilfield
workers, most problems can be solved relatively easily,
but preventing problems is better.
Potential problems
Only rarely can a single solution address 10 or more
problems, particularly when the problems affect the
most fundamental parts of the well the tubulars.
Problems with tubulars are vexing because they affect
the wells hydraulic integrity, which is critical to produc-
tion. In addition, tubulars are, in most cases, part of the
wells permanent infrastructure and cannot be accessed
or repaired with ease. They are subject to corrosion, ero-
sion, separation, leaking connections, and mechanical
damage from pressure, impact, or wear. Sometimes
there is nothing wrong with the tubulars, but reservoir
conditions have changed. Perforations that were provid-
ing points of ingress for oil or gas now are producing
water, or reservoir pressure has declined to the point
that the original tubulars cannot provide enough veloc-
ity to naturally lift the production to surface. The impli-
cations of these problems go to the operators bottom
line because they directly affect production, either by
reducing it or by cutting it off altogether.
The most prevalent problem affecting producing wells
is unwanted water ingress. Water can come from natural
reservoir depletion in the form of a rising oil/water con-
tact or from other problems such as communication
channeling from an aquifer through a bad cement job.
There are several
possible solutions
available to shut off
unwanted water influx.
One of the most com-
mon solutions is a
cement squeeze.
Squeezes do not always
work and cannot pre-
vent potential prob-
lems. They typically
involve a drilling or
workover rig because
post-squeeze cleanup
usually requires a
scraper or milling tool
run. In addition, when
pumped downhole,
the cement slurry fol-
lows the path of least
resistance, which
might not be the
water source.
A variety of casing or
tubing patches exists.
These offer a potential
solution to tubular
problems plus the abil-
ity to prevent prob-
lems in some cases. In
most cases, the biggest
advantage is that
downhole tools can
pass through patches
after they are set,
allowing the well to be
worked over, logged, tested and, most importantly, pro-
duced. A critical factor is the final ID after they are
deployed. Some do a good job at sealing off water influx
but place a permanent restriction in the pipe that pre-
vents some tools from passing through. Steel body strad-
dle-style packers fall into this category.
Versatile tool solves
several well problems
It can be difficult to anticipate all possible problems or issues that could arise in the course
of completing a well or maintaining production after completion.
Bernie Jones and Stephen Loving,
Owen Oil Tools Division of Core Laboratories Ltd.
A slim profile patch is anchored top and
bottom by expandable metal-to-metal
seals that can withstand HP/HT condi-
tions while supporting tubulars such
as liners or sand screens. To retrieve
the patch, only the sealing elements
need to be milled. (Images courtesy
of Owen Oil Tools)
59-62 Downhole-Owen_Layout 1 1/22/11 9:25 PM Page 59
60
DOWNHOLE SYSTEMS
& SOLUTIONS
All installed patches have pressure ratings, which can
vary widely. For example, the thin-wall fiber and resin
patches have very low pressure sealing capability. Opera-
tors should carefully check the pressure capability of the
proposed solution against the type of problem they are
attempting to solve.
Retrievability can be a problem. Some patches are very
difficult if not impossible to retrieve. They must be com-
pletely drilled or milled out from top to bottom, includ-
ing the zone of original casing damage they were set to
mitigate. Trying to mill through such a zone could result
in catastrophic damage if the mill engages a rip or a split
in the base pipe.
Executing solutions
Ease of deployment varies greatly. Some patches
require a rig; others can be set on wireline only.
The distance that can be spanned by a single
patch varies greatly as well. Some patches are
only available for casing, not for tubing. Tensile
strength varies from patch to patch; some can-
not support much weight at all, meaning they
cannot be used as a hanger system. Cost of
mechanical patches varies widely. While many
are more economical than cement squeezes, the
amount of savings from different designs can be
substantial. Some such as external casing
patches, heavy-wall expandables, and fiber-resin
varieties are very expensive.
Owen Oil Tools X-SPAN system is a highly ver-
satile patch. Available in both fluid and gas mod-
els, it addresses a broad range of applications,
including shutting off unwanted water influx,
zonal protection, or frac-through applications.
All tubular leaks can be repaired, from pin holes
to leaking collars, as well as from liner tops to
frac ports and auxiliary tools in horizontal wells.
Straddling corroded or eroded tubing or cas-
ing has the highest long-term potential because
it can be a problem-prevention application rather than a
problem-solving one. For example, if a leak is detected
due to suspected corrosion or erosion, a corrosion log
can be run to identify all portions of the pipe that are
affected, not just the joint with the leak. X-SPAN can be
deployed to protect 300-ft (100-m) sections of tubing or
casing on a single trip, with multitrip stackable patches
available to span longer intervals.
Patch work in the field
In Balikpapan, Indonesia, four wells were making an
excessive amount of water from a rising contact. Previ-
ously addressed using expensive and time-consuming
cement squeezes, the problems were solved by installing
3-in. X-SPAN patches via electric line at significantly
lower cost.
In Alberta, Canada, logs indicated a well had a 230-ft
(70-m) section of severely corroded casing. After the
operator rejected casing retrieval and cement squeeze
solutions, a 252-ft (77-m) X-SPAN patch was run effec-
tively, sheathing the entire corroded section. Final costs
were 10% of the estimate for the alternate methods.
Also in Alberta, a popular multistage frac technique
was jeopardized when a shallow frac port was opened
prematurely. A 52.5-ft (16-m) X-SPAN patch was run on
coiled tubing to straddle and seal off the open frac port.
The large ID allowed drop balls to pass so all deeper
stages could be fraced successfully. Treatment pressures
reached 8,500 psi, but the patch held.
In the Bass Strait offshore Australia, misplaced blast
joints resulted in high-pressure production eroding tub-
ing near the top of the blast joint. A 10-ft (3-m) 3
1
2-in.
diameter X-SPAN patch was run on electric line to iso-
late the leak. It was successful despite the fact that it had
to set and seal in both the tubing and blast joint IDs.
The fix eliminated the need for a costly offshore
workover and returned the well to full production.
Deployable by electric wireline, slickline, or coiled tubing in both vertical
and horizontal well bores, the X-SPAN can be easily transported by land,
boat, or air to the well site.
Automating the Subsea Field
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Pump downtime out of your operations.
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Copyri
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DOWNHOLE SYSTEMS
& SOLUTIONS
T
he idea of seeing what is happening in a well is what
inspired the development of electrical logging devices.
In fact, one of the early logging tool providers used the slo-
gan, The eyes of the oil industry. That was a bit of a
stretch, given the appearance of the early well logs.
Using todays technology, it has been possible to actually
see downhole images. Recently, this technology has made
significant advances that enhance the operators ability to
diagnose downhole problems and conditions that benefit
decision-making in a big way. Users are quick to point out
that downhole video images do not take the place of log-
ging tools; they complement them. Logging tools have the
ability to look deep inside the formation using precisely
measured formation and fluid parameters, whereas video
images provide pictures of the borehole itself.
Downhole video is a diagnostic tool used to for complex
wellbore problems such as physical damage or downhole
debris and to view fluid entries of oil, gas, and water. The
clear video evidence encourages operators to take reme-
dial action to resolve the problem and aids in choosing
between alternative techniques. With proper diagnosis,
the best solution can be implemented to return problem
wells to production. Seeing is believing, and the video
medium dramatically reduces the time and expense of
trial-and-error approaches to problem solving.
How could they see anything in drilling mud?
Early downhole video devices used downward-oriented
cameras to view fish or debris that were impeding drilling,
logging, or running completions. They consisted of a pow-
erful light source and a camera. In some cases, they had a
casing collar locator. Seeing through opaque fluid was the
biggest challenge; even clear completion fluid sometimes
had fine solids in suspension that caused the light to
reflect into the camera, completely obscuring the image.
An elegant solution involved two options: clear fluid
slugs could be circulated downhole to the problem area,
or clear fluid could be deposited in the
borehole at
the site using an accompanying dump-bailer. An innova-
tive use of a clear surfactant kept both the light and the
camera lens from clouding up. These innovations vaulted
downhole video from an interesting gadget to a reliable
commercial service.
A variety of camera technologies and light sources also
were developed in the industry. The most common is the
backlight that is positioned facing downward behind the
camera and bounces light off the borehole walls to illumi-
nate the volume in front of the camera lens. Another type
is the ring light that consists of a ring of intense light
sources that surround the camera lens, eliminating all
shadows. A dual-camera system with one camera facing
downward and the other on the side provides rotation
capability for a 360-degree view of the casing or open hole.
Standard movie cameras operate at 24 frames per sec-
ond. Cameras can store images at a high rate of 30 frames
per second. The higher speed allows clear imaging of fast
downhole fluid flow like gas bubbles.
Many downhole problems do not involve motion at all,
so the frame rate is not a factor. For example, if an opera-
tor wants to examine the top of a fish to see how best to
engage it, a series of still images can be taken. Other down-
hole problems involve slow motion, so a movie can be
made with a series of still shots played at high speed.
In all cases, image storage and processing must be con-
sidered. Since downhole video can be conveyed on any-
thing from slickline to electrical wireline to fiber-optic
cable in coiled tubing, downhole tools must be compatible
with all of these conveyance techniques. Accordingly, slick-
line tools record all images to their memories, which are
downloaded to a computer after the camera is retrieved to
surface. Electric wireline tools can acquire real-time
images at 30 frames per second and can transmit or play
back according to their bandwidth frame. Fiber-optic sys-
tems can acquire and transmit images at 30 frames per
second in real time. As a bonus, color images and video
options are available.
Video imaging today has considerable value:
Fishing aid video images can determine size, orienta-
tion, and location of fish or debris; they also can allow
Seeing is believing
Downhole problems are difficult to address because they are not visible. How often has
an engineer said, If I could only see whats going on, I know I could solve this?
Dick Ghiselin, P.E., Senior Editor
The HawkEye IV system with the ViewMax side view camera is
software controllable from the surface for downhole and 360
radial views. (Photos courtesy of Expro)
63
63-66 Downhole-Expro_Layout 1 1/24/11 10:12 AM Page 63
64
DOWNHOLE SYSTEMS
& SOLUTIONS
operators to make a go/
no-go decision based on
determination of success
and risk;
Fluid entry surveys locate
the entry point of oil, water,
gas, or sand and view flow
regimes such as slugging,
bubbles, or emulsions view
injection flow;
Mechanical inspection can identify and locate tubular
restrictions caused by foreign objects, buckling, or par-
tial collapse; visually inspect casing leaks from splits or
leaking collars; inspect perforations to identify bur-
ring, irregular hole shapes, splits, or anything that
would preclude the operation of ball-sealers; inspect
sliding-sleeve frac ports, downhole adjustable chokes,
or sand screens; perform integrity checks of multilat-
eral junctions, whipstocks, or casing windows; check
tubulars for internal scale or corrosion buildup; and
inspect surface well-control equipment; and
Openhole applications can view fracture apertures
and inspect borehole quality and locate and inspect
bottomhole junk.
Expros latest tool, the HawkEye IV, can work in 257F
(125C) and 10,000 psi conditions. Also available is a
high-pressure tool that is rated to 15,000 psi. A comple-
mentary high-temperature version is under development.
The tool has a 1
11
16-in. diameter and is 102 in. long in stan-
dard version or 151 in. long in the ViewMax version. The
The camera shows the top of
a fish, enabling operators and
fishing specialists to choose
the most effective grapple.
Having eyes in the well
allows operators to see and
evaluate collapsed tubing
before getting stuck in it.
Gas production bubbles up
from a perforation engineers
can locate and identify fluid
entry as well as flow regimes.
63-66 Donhole-E!pro_La"out 1 1/22/11 9:29 PM Page 64
OTC2011
2-5 MAY 2011 ee RELIANT PARK :: HOUSTON
, TEXAS
TECHNOLO?Y
CONFERENCE
The Offshore Technology Conference is the world's foremost
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tool can acquire and store images at 30 frames per second
and transmit over the electric line for real-time view or
playback on the computer.
The Turbo mode and software control of the ViewMax
camera set the HawkEye IV apart. The surface software
control option can switch between the downview and the
sideview, start/stop rotation, speed-up/slowdown rotation
to take traditional axial images from its downward-oriented
lens and can capture 360-degree radial scans of the bore-
hole well with its radially oriented lens. The ability to view
casing damage or perforations head-on provides enhanced
diagnostic ability.
Additionally, HawkEye IV software in Turbo/Burst mode
can command the tool to increase its frame rate from one
frame per second to as fast as 30 frames per second by stor-
ing images in the tool and transmitting them in batches to
the surface for playback. These turbo acquisitions are well
suited for moving fluids. There is no limit to the number of
turbo acquisitions downhole, eliminating the need or time
required to bring the tool to the surface.
Images do not come from deep downhole only. The
ViewMax camera recently was used to image inside a sub-
sea BOP to determine if debris was impairing ram travel or
if sealing elements had sustained damage. Leaking tubular
collars can be detected and diagnosed anywhere in the
well bore using side scan. Physical damage to downhole
tubulars from splits or corroded areas to multilateral junc-
tion integrity also can be detected.
Presently the downhole video can be combined with a
temperature/pressure tool, inclinometer and magnetic
compass (useful in openhole wells), spinner flowmeter,
gamma ray, and water investigation tool designed to pin-
point water entry in wells with water cuts greater than 50%.
A special application combines a camera tool with a multi-
finger caliper to obtain measurement data in addition to
the visual data. All cameras can be conveyed by tractor for
horizontal well applications.
Bolstered by advances in image acquisition and teleme-
try, downhole video systems have become valuable diagnos-
tic tools. When combined with other sensors like calipers
and production logging tools, they provide valuable insight
that can help mitigate problems and speed up repairs.
A traditional axial view shows parted casing. The radial view
shows a clear picture of the nature and extent of damage so
effective remedial action can be implemented.
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A
shale outcrop near Utica, N.Y., is the tip of a massive
play that has excited operators as far north as
Qubec and as far south as Virginia. Called the Utica
shale, its shear areal extent indicates that it will be in the
news for some years to come.
The shale is middle Ordovician in age and was created
from sediments deposited in warm seas about 465 million
years ago. According to Oilshalegas.com, estimates of
reserves range from 2 to 69 Tcf, an obvious indication
that much is yet to be learned about this play.
Often compared to its shallower cousin, the Marcellus
shale, the Utica is thicker and much more geographically
extensive. According to Geology.com, it also has a higher
carbonate content than the Marcellus and a lower clay
mineral content. This difference in mineralogy produces
a very different response to hydraulic fractur-
ing, the website states. The methods used in
the Marcellus do not produce as much fractur-
ing in the Utica. However, future research
might be able to significantly improve the
fracturing rate.
The play underlies parts of Kentucky,
Maryland, New York, Ohio, Pennsylvania,
Tennessee, West Virginia, and Virginia as well
as extending into Canada. If the Utica is
commercial throughout this extent, it will
be geographically larger than any natural
gas field known today, the website states.
Utica players
Gastem was one of the early movers in the play.
A Qubec-based oil and gas exploration and
development company, Gastem has rights to
more than 1.1 million acres of land in the St. Lawrence
Lowlands, the Gaspe Peninsula, and the Magdalen
Islands in Qubec. Its wholly owned subsidiary, Gastem
USA, holds exploration licenses to about 34,400 acres in
New York as well as 1,200 acres in Virgina.
CEO Raymond Savoie said his company, which was
listed in early January 2004, was principally involved with
some of the gas plays in the lowlands, particularly south
of Montreal. At the time, though some of its acreage cov-
ered the Utica shale, the company was focused on drilling
collapsed grabens. By 2006, however, company officials
started to catch wind of the fact that the Utica might, in
fact, be as big a play as some of the shales in the US.
It mostly started in 2006 in Qubec, Savoie said.
There were a couple of companies that were snooping
around Talisman and Forest Oil and they were talking
about the Utica like something that might have potential.
There was a lot of belief in it. This forced us to look at the
Utica pretty hard. We raised some funds and drilled the
first two wells to specifically test the Utica. When we cored
them, it all came together the numbers were there. And
we said, Weve got a play.
Like most shales, the Uticas existence was no secret.
Savoie said a professor from McGill University did some
work for several companies in the 1940s and 1950s that
were looking for oil in the Qubec Lowlands. There was
no interest in gas at that time, he said. But he wrote
some notes that I stumbled onto in 2005 mentioning
that the Utica, if it could be properly tested and broken
with water, would probably yield some interesting quanti-
ties of gas.
67
Operators take a
closer look at the Utica
This enormous shale play could be the largest natural gas field ever discovered.
UNCONVENTIONAL:
UTICA
An extended flowback test is performed at Saint-Francois-du-Lac
#1. (Images courtesy of Gastem)
67-70 UnconUTICA-Gasem_La"o! 1 1/22/11 9:33 PM Page 67
Sand buster
TM
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69
Gastem also has acreage in the Marcellus shale in New
York. Savoie said the two shales differ greatly. The Mar-
cellus is richer, he said. It has some production history,
and Utica doesnt. Right now, the Marcellus is a more reli-
able play than the Utica. The Utica is still finicky, and it
still has a way to go.
But Gastems New York acreage ultimately could prove
to be a triple treat the Utica shale lies under Oneida
sands, which in turn lie under the Marcellus shale. Savoie
said that his company has drilled some wells to test vari-
ous approaches and find areas where production from all
three zones can be combined. That will give us some
good numbers, we think, he said.
Utica feeding frenzy
The areas in which Gastem holds acreage are relatively
quiet the Qubec acreage is taken, and activity is
slow in New York while the industry awaits the resolu-
tion to a temporary ban on hydraulic fracturing.
In other areas, the land grab is in full swing. An
article in the Columbus Dispatch described the scene in
Columbiana County, Ohio, where as many as 40 oil
company representatives file into the land office
every day. The county had seen 600 new mineral
rights leases as of Nov. 20, 2010, more than three
times the number of the previous year. In Harrison
County, Ohio, the office was so full that people were
sitting on the floor.
West Virginia also is seeing Utica interest. Mining
and oil and gas company Consol struck gas in Octo-
ber 2010, with its vertical Belmont County well pro-
ducing 1.5 MMcf/d. Not surprisingly, the company
announced that it would shift some of its 2011 invest-
ment dollars into further Utica exploration.
Other states are handling the Utica more calmly.
Savoie said it is very deep in Pennsylvania, making it a
less likely target than the shallower Marcellus. Michi-
gan saw a bit of a rush in 2009,
but more recently, operators
have been interested in shal-
lower shale there as well.
The next Barnett?
According to Geology.com,
the main challenges for future
development of the Utica are
its depth and a lack of infor-
mation. In areas where the
Marcellus shale is present, the Utica shale is probably
going to be a resource of the distant future, it states.
It also is premature to compare it to other shale plays
such as the Barnett shale in Texas. But Savoie thinks it has
real potential.
The Barnett is unique, he said. They worked at it for
10 years before they got it down pat, and even now there
are areas with good commercial interest and areas with-
out. I think its going to be the same with the Utica.
Technology may catch up, and we may be able to get at
those areas that are less promising today. For now, with the
technology and information that we do have, the Utica
will most certainly be a good player for the long term.
He added that production figures might not be as high
as other shales, but the shear scope of the Utica will make
it a prolific play. Its like a Walmart, he said.
A field hand prepares a connection
at Saint-Louis-de-Richelieu #1.
UNCONVENTIONAL:
UTICA
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Gastems properties in New York.
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T
he Utica shale is on its way to demonstrating commer-
cial production across the border in Qubec, Canada.
In the US, the Utica underlies the prolific Marcellus
shale in portions of Kentucky, Maryland, New York,
Ohio, Pennsylvania, Tennessee, West Virginia, and Vir-
ginia. The play extends into Canada as well, beneath
parts of Lake Ontario, Lake Erie, Ontario, and Qubec.
Currently, the majority of mineral leasing for the Utica
has been in eastern Ohio and Ontario, Canada, where
the play is less than 4,000 ft (1,219 m) below the surface
and the Marcellus is not present. In Qubec, a con-
certed effort has been under way since 2008 to validate
and commercialize a resource estimated to rank among
the top 10 natural gas discoveries in North America.
Following more than 40 years work in Qubec
that identified the prospectively of the Utica, recent
advances in horizontal drilling and hydraulic fracturing
technology are helping to unlock the potential of this
resource. Actively exploring for natural gas in the
St. Lawrence Lowlands, Qubec, since the late
1980s, Questerre Energy Corp.
has been at the forefront of
developing the Utica shale in
the province.
Uticas mineralogy is favorable,
with a very dry, sweet gas that is
basically pipeline quality, accord-
ing to Michael Binnion, CEO at
Questerre. In Qubec, we hap-
pen to have a very clean shale.
Economically, dry gas could be
considered a disadvantage,
although from an environmental
perspective, it is very beneficial,
he added.
The extensive water resource
that made Qubec an exporter
of hydroelectricity could be its
Achilles heel when it comes to
developing the Utica. Were sit-
ting in one of the biggest fresh-
water drainage basins in North
America, Binnion said. For this
reason, Utica development is challenged by environ-
mental and public relations concerns.
Economy of scale
The lack of a local oil and gas services industry in the
Utica also is hindering further work in the short term.
At current gas prices, shale gas is a low-margin business
and requires a local service sector to create the neces-
sary economies of scale. To date, many of the services
used in Qubec are imported from Western Canada,
often on a single or multiwell basis. For the Utica to
enter full development, a local service industry will have
to be created. Thats where you get into a bit of a
chicken-and-egg problem in Qubec, Binnion said.
Without committing to a big enough program
(approximately 30 to 50 wells), it is not worthwhile for
service companies to set up shop in Qubec. We think
to solve this problem, the industry has to get to the
point where it has the confidence to commit to those
30 to 50 wells, which is potentially a US $300 million
to $500 million commitment, he added.
Marcellus activity might improve this scenario in the
long term with more equipment being used closer to
71
Utica shale is young but promising
The Utica shale is finding its way from exploration to development.
Tayvis Dunnahoe, Senior Editor
UNCONVENTIONAL:
UTICA
In Qubec, the pulp and paper industry uses the most water annually; the shale gas industry uses-
significantly less. (Chart courtesy of Questerre Energy Corp.)
71-73 UnconUTICA-Q!eserre_La"o! 1 1/22/11 9:37 PM Page 71
Qubec. However, equipment often moves across the
border easier than people. I think when you get an
economy of scale, there might be more room to share
services with the Marcellus because youll get systems
to move people back and forth, Binnion said.
Dispelling myths
More challenging than the lack of a service sector is
addressing the public relations concerns about shale gas
development. In a province with no history of oil and
gas development, myths regarding environmental issues
that began in the US have easily pervaded Qubec and
captured the medias interest.
Water use in hydraulic fracturing procedures has been
a point of contention for many environmental groups. As
industry proponents scramble to provide as much infor-
mation as possible on the facts concerning this technol-
ogy that has been used for more than 50 years on several
thousand natural gas wells, the public relations challenge
for many operators is becoming more important.
For example, Binnion recently started his own blog.
I wanted to try to answer directly to people on some
of these issues, he said. There exists a major conflict
between two industries right now, namely coal and
natural gas. I think the media loves it, he added.
Water usage
When compared with other users in the province, the
future shale gas industry is expected to be a light indus-
trial user of water. Potential water volumes associated
with a 400-well shale gas development program repre-
sents 1.5% of the rural water intake in Qubec less
than the estimated amount of water used by car washes
in the province. Of note, the city of Qubec loses six
times as much water annually from its municipal water
system.
Contamination of groundwater by hydraulic fractur-
ing is yet another myth Questerre has encountered. It
is virtually impossible for fracs to grow 1 to 2 km (0.6
to 1.2 miles) up into the freshwater aquifers, no matter
how loud the trucks roar, Binnion said. Questerre and
its partners currently test water wells in the surrounding
area to gather baseline data to confirm they are not
affected by the drilling and fracing process.
Most people do not realize that surface and shallow
gas is quite common in Qubec and has existed for cen-
turies. Farmers drilling water wells used to encounter
shallow gas that would heat their homes.
Reuse, recycle
As the Utica shale moves toward the development phase,
the industry in Qubec expects to reuse and recycle as
much water as possible, with the goal of approaching
100% recycling.
Salt is the primary ingredient of water flowing from
Utica completions. In fact, an analysis of the water indi-
cates lower salinity than seawater and minute levels of
heavy metals. The main way we resolve this is by dilut-
ing the water with additional makeup water, Binnion
said. There are no highly radioactive constituents like
other shales. Were just lucky that way.
Notwithstanding the lack of a local service sector and
public perception challenges, Binnion still is enthusias-
tic about the Utica. With new hydrocarbon legislation,
including a regulatory and fiscal framework, 2011 will be
an important year in Qubec. In light of the issue sur-
rounding shale gas development in New York, how
Qubec decides to develop this resource through the
new legislation will be important not only for Questerre,
but for the entire shale gas industry.
UNCONVENTIONAL:
UTICA
72
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eak detection and monitoring of subsea structures are
becoming increasingly important because of the need
to manage production and control fluids. One of the
recently introduced approaches to improve monitoring is
a new class of optoelectronic subsea sensors based on flu-
orescence spectroscopy that provides permanent, real-
time monitoring for hydrocarbon production systems.
The system, developed by FMC Technologies, is
capable of detecting small production fluid leaks over
distances of 10 to 12 ft (3 to 4 m) in a subsea environ-
ment and can detect many hydraulic fluids at greater
distances. The system uses advanced single-emitter LED
technology to meet the challenges of lifetime power
consumption, spatial coverage, and delivery of a cost-
effective solution. It is designed for permanent deploy-
ment on subsea trees, subsea processing systems, and
related equipment to provide enhanced leak detection
capability, and it can work at water depths to 9,842 ft
(3,000 m).
Today, most leaks are discovered either in the course
of routine ROV inspection or when personnel observe
surface oil slicks. Relying on visual surveillance is inade-
quate, especially in light of the fact that exploration and
development are being carried out in environmentally
sensitive areas.
The focus of leak detection should be to identify the
small and chronic leaks that are not detected by conven-
tional leak detection systems based on pressure or mass
balance and leaks that are difficult to detect using
acoustic or capacitive based systems.
Fluorescence-based leak detection
The new permanent subsea leak detector has been
designed employing fluorescence as the basis of the
measurement. Fluorescence measurements offer a
number of advantages over existing technologies for
subsea leak detection. Because hydrocarbons and some
hydraulic fluids have specific fluorescence signatures,
they can be targeted by the detector. This makes fluores-
cence systems more selective than conventional systems
and less prone to false alarms. Additionally, fluorescence
measurements are very sensitive, allowing small leaks to
be detected.
Detecting and monitoring chronic leaks can allow
operators to schedule planned cost-effective interven-
tion and maintenance, which reduces the chance that
a small leak will become catastrophic. The intensity of
fluorescence detected correlates with the volume of
leaking material in the water column. A more intense
reading indicates a larger leak. Not only does this
approach provide an immediate indication of the
magnitude of the leak, it allows a marginal leak to be
monitored over time. This information can be vital in
planning effective maintenance or repair programs.
The basic layout and concept for the new instrument
New sensor allows leak detection
for subsea structures
Leak detectors routinely are specified for subsea installations. In reality, the majority of leaks
still are discovered either through routine ROV inspection or observation of surface oil slicks.
David Moodie and Danny McStay, FMC Technologies
The instrument is housed in a pressure enclosure rated for a
maximum working depth of 9,842 ft and can be fitted with a
camera that provides a visual record of the leak location and
volume. (Images courtesy of FMC Technologies)
74
DEEPWATER
ADVANCES
74-75 Deepwater-FMC_Layout 1 1/22/11 9:39 PM Page 74
75
developed for effective perma-
nent subsea leak detection has
been adopted for pipeline and
riser inspections carried out
using ROVs. The leak detec-
tion process begins with a
beam of light projected from
the leak detector unit. The light is at a wavelength suit-
able to excite the fluorescence of the target material
(oil, hydraulic fluid, etc.). A portion of the fluorescence
is collected by the leak detector systems photo-detec-
tion unit. The detected fluorescence signal is fed to a
controller and processing system that converts the signal
into a numerical representation that shows the concen-
tration of oil or hydraulic fluids present in the water.
Threshold levels for oil and hydraulic fluids can be set
so that an automatic signal sounds when leak levels
exceed those identified.
The leak detector can be deployed to monitor a fixed
location on a subsea structure or can be fitted to a pan-
and-tilt system that allows the light beam to sweep across
the structure. When combined with the pan-and-tilt sys-
tem, the sensor is effective over ranges to approximately
10 ft and provides operators the ability to monitor key
areas of subsea equipment such as subsea trees and
manifolds.
Developing the system
A detection instrument that is going to be used in a
permanent subsea deployment must have low power
requirements, but it also must be highly sensitive. Ide-
ally, a system should require a maximum power of less
than 10 watts and run over a low-bandwidth communica-
tions channel. Typically, the communications are MOD-
BUS or preferably CANOpen for compatibility with the
Subsea Instrumentation Interface Standard.
To achieve these requirements, the new FMC system
uses recent developments in high-power LED technology
that provide high output power and efficiency at wave-
lengths that are suitable for effective excitation of hydro-
carbon fluorescence at 365 and 405 nm. These new LED
devices can emit more than 200 milliwatts with electrical
to optical efficiencies approaching 15%. When combined
with efficient electronics for signal processing systems, a
practical leak detection instrument can be realized with a
total power consumption of less than 10 watts. The instru-
ment is housed in a pressure enclosure
rated for a maximum working depth of
9,842 ft. The system also can be fitted with
a camera that can be turned on following
an alarm signal from the leak detector.
The camera provides a visual record of
the leak location and can eliminate the
need to mobilize an ROV to confirm the
presence of a leak.
The system has been designed for
compatibility with existing subsea con-
trol modules and is suitable for retrofit
applications. Because it enables early
detection of small leaks and the ability
to monitor the evolution of leak rate
with time, this leak detection system is
an important tool that allows operators
to comply with environmental require-
ments, enabling early intervention when
necessary and in the end, optimizing
subsea production.
This artists impression shows the
leak detection and monitoring
system in operation.
Hydrocarbons and some hydraulic fluids have specific fluorescence signatures that
can be targeted by the detector. This sample fluorescence spectrum shows a North
Sea crude oil sample with 365 and 405 nm LED excitation. The visible spectrum is
shown for reference.
74-75 Deepwater-FMC_Layout 1 1/22/11 9:39 PM Page 75
T
he spar continues to be a popular drilling and produc-
tion option for deep water. The spars primary attrac-
tion is its low motions, which are effected by its deep
draft. The motions allow dry-tree completions and result
in less damage to the top tensioned and steel catenary
risers as well as the mooring system.
Structural fatigue is a main consideration in the design
of offshore floating structures. The main sources of
fatigue are the floaters motions in response to the envi-
ronment and vortex-induced vibrations (VIV) caused by
the current acting directly on the structural components.
One constituent of the
motion-induced damage is
the vortex induced motion
caused by the current flow-
ing past the structure.
When a hull is exposed to
a current, it sheds vortices
that cause the hull to oscil-
late. The amplitude of the
oscillation depends on the
speed of the current and the
size of the structural compo-
nent (i.e., the hard tank
diameter of a spar).
Contending with VIV
Physical structures have
natural periods that can be
excited by dynamic forces
that have harmonic content
close to these periods. Floating structures in the ocean
have natural periods that can be excited by the period at
which vortices separate or are shed.
The relationship between the current velocity and the
natural period of the hull is a function of the hull diame-
ter, natural period of a particular component, and cur-
rent velocity. Using an empirical coefficient to relate
these parameters, the particular current velocity at which
the structure will become excited or lock-on to the nat-
ural period can be predicted. This relationship is referred
to as the reduced velocity. Currents in the ocean typically
have a range of velocities and therefore cover a range of
reduced velocities.
The structure is assumed to oscillate or move back and
forth at an amplitude, a. This amplitude generally is
proportional to some characteristic dimension, typically
the diameter of the structure. This motion causes stresses
in the structures. The level of stress is related to the size
of the amplitude, i.e., large amplitude motions cause
large stress ranges.
Continued application of these cyclic stresses induces
fatigue damage in the structural components, and
although these amplitudes cannot be practically elimi-
nated, reducing the amplitude of the oscillation reduces
the stress and thereby reduces the damage.
The conventional means of mitigating the oscillation
amplitude is to attach strakes to the spars hard tank.
Adding strakes affects the amplitude of the vortex-induced
motion (VIM) on the spar. A full strake has the maximum
affect on reducing VIM amplitude.
In general, experimental results have shown that the
optimum height of the strake above the wall of the hard
tank is approximately 15% of the hard tank diameter. For
example, a spar with a 100-ft (30.5-m) diameter hard tank
would have a strake height of 15 ft (4.6 m).
Construction considerations
Because of some construction and delivery limitations for
spars (such as dockside water depth), it sometimes is nec-
essary to attach clipped strake sections that are less than
15% of the diameter. These abbreviated strakes offer a cer-
Strake technology
extends spar field life
Vortex-induced motions exert stresses on risers and moorings, which can lead to overstress-
ing, buckling, brittle fractures, or fatigue. The motion and stresses can be mitigated by attach-
ing strakes to the hull. A new approach to construction could mean a longer life for spars.
John Murray, FloaTEC LLC
A current flowing past the spar hull induces an
oscillating motion because of vortex shedding.
Attaching strakes to the hard tank reduces the
amplitude of the motion, which reduces the
amount of damage sustained by the risers and
moorings. (Images courtesy of FloaTEC LLC)
76
DEEPWATER
ADVANCES
76-77 Deepwater-Strake_Layout 1 1/22/11 9:43 PM Page 76
77
tain amount mitigation of motion amplitude, but they
are not as effective as strakes that are 15% of the diam-
eter of the hard tank. In some cases, the orientation of
the installed spar can be optimized to take advantage
of the smaller strake height.
Spars generally are constructed in sections on skid
rails leading to a waterfront bulkhead. Once the spar
is completed, it is offloaded horizontally from the end
of the skid rails onto a large transport vessel, which
can move it to another location. Alternatively, the spar
can be offloaded into the water at the construction
site. The skidding weight of the hull typically is in the
order of tens of thousands of tons. Because of the
large hull weight, it is advantageous to leave the strake
off of the underside of the hard tank during skidding
operations. Once the hull is in the water, it can be
rolled over so the missing strake sections can be
attached while the hull is floating dockside.
The strakes also can be installed on land before the
skidding operation. If this option is chosen, however,
additional support cribbing is needed to elevate the hull
above the strake to avoid strake damage during load out.
This option is a more practical operation when the hull
does not have to be transported in open sea conditions.
Transporting a hull in support cribbing over a great dis-
tance becomes complex because of the in-sea fastening
needed to meet open sea stability requirements. From a
safety standpoint, skidding the hull and offloading it into
the water dockside is a simpler operation.
Often, dockside water depth presents a construction
limitation for spars. When strakes are attached to a large-
diameter spar hull, dockside water depth generally is not
adequate to allow sufficient clearance under the strake
for horizontal towing.
One way this can be overcome is to dredge the area
next to the dock or create a deep hole near the dock
to provide adequate water depth to float the hull off a
load-out vessel. Although this approach allows the hull to
safely enter the water, it does not accommodate moving
the spar away from the dock. Generally, that amount of
dredging through a waterway is cost-prohibitive.
Leaving the strake off or clipping the strake for trans-
port are options that have been used in the past, but
both choices can compromise the strakes effectiveness.
If the hull is deployed without the full optimum strakes
attached, its motions are compromised.
Strakes, VIV
Clearly, the greatest benefit from strakes is derived when
they are installed the entire way around the hull at the
optimum size. An option to achieve this is being investi-
gated by FloaTEC. The concept is to modify the strake by
attaching a hinge to the tip, allowing it to be folded dur-
ing load-out. The new strake is designed to fold back to
provide the required underside clearance gap for hori-
zontal towing. Once the hull is uprighted at the installa-
tion site, the folded sections can be opened and secured
so the resulting strake is the optimum size.
At present, the folded strake is in the concept stage.
The idea is being furthered developed through engineer-
ing design and analysis. The objective is to provide strakes
that achieve their optimum performance in mitigating
VIM on the hull without adding complexity to the load-
out operation. If FloaTEC is successful, the end result will
be hulls with a greater likelihood of achieving a longer
life in the field for risers and moorings.
Adding strakes affects the amplitude of the VIM on the spar. A
full strake has the maximum affect on reducing VIM amplitude.
The folded strake design provides the required underside clearance
gap for horizontal towing.
76-77 Deepwater-Strake_Layout 1 1/22/11 9:43 PM Page 77
W
ith the use of a unique deepwater managed-pres-
sure drilling (MPD) system to successfully drill
fractured carbonates in the Makassar Straits of Indone-
sia, Transoceans GSF Explorer continues to push the
boundaries of offshore drilling.
Installation of the first integrated MPD system in a
marine riser below sea level provided a flexible solution
that enhanced drilling capabilities in the difficult forma-
tion and improved safety and efficiency through early
kick detection, riser gas handling, MPD, and pressurized
mud cap drilling an MPD variant used in total lost cir-
culation conditions.
MPD components
Weatherfords deepwater MPD system is installed above
the intermediate flex joint in the riser and below a stan-
dard slip joint. As a result of this configuration, the riser
can be used in a conventional manner with full-bore
access to the well. The entire system is installed through
the rotary table when the riser and BOP are deployed.
The 40-ft (12-m) MPD system provides riser gas han-
dling and early kick detection as soon as the BOP is
connected to the well.
The riser MPD assembly used on the GSF Explorer com-
prises three main components: the flow spool, riser
annulus, and rotating control device (RCD).
The flow spool provides the connection for the flow-
lines from the top of the riser to the MPD manifold. Two
6-in. flowlines are connected at the moonpool to allow
returns to the shale shakers and mud pits.
A 21
1
4-in. subsea annular BOP is installed above the
flow spool. The annular BOP allows riser gas handling.
If a kick is detected in the riser, the annulus can be
closed to provide controlled handling of a riser influx
through the flow spool and back to the surface.
The Weatherford Model 7875 Below Tension Ring
Seashield RCD is installed on top of the annular BOP in
the MPD joint in the riser. This RCD provides pressure
control for annulus gas containment and drilling opera-
tions. Its principle use is to provide an annular seal around
the drillpipe during drilling and tripping operations.
The inside profile of the RCD includes a hydraulic
latch assembly to receive, retain, and release the bearing
seal assembly. With the bearing assembly removed, the
2,000-psi RCD system is capable of handling the full-size
18
3
4-in. BOP tools.
This RCD currently is the only one in the world that
can be installed in a deepwater marine riser and support
A legend embraces deepwater
MPD technology in Indonesia
The rig was known as the Glomar Explorer when it was launched in 1974
by Howard Hughes to secretly recover a lost Soviet submarine. Today the Transocean
GSF Explorer continues a tradition of innovation.
Steve Nas, Weatherford International Ltd.
When mounted below the tension ring on a floating rig, the RCD
creates a positive seal around the rotating drillpipe and tool
joints to positively divert annulus returns. (Images courtesy of
Weatherford International Ltd.)
78
DEEPWATER
ADVANCES
78-79 Deepater-Weatherford_La!out 1 1/22/11 9:45 PM Page 78
79
DEEPWATER
ADVANCES
the riser tension requirements while
conforming to API 16 RCD drill-
through specifications. The ability to
put the RCD in tension with the stan-
dard riser allows it to become a stan-
dard component of the riser and
enables installation below the conven-
tional rig slip joint.
Installing the RCD below the tension
ring and slip joint allows deepwater
drilling operations to be conducted
conventionally as in a standard deepwater drilling con-
figuration, yet it provides early kick detection and riser
gas handling at any time during operation. The body of
the RCD has a subsea-rated hydraulic stab plate mounted
so hydraulic hoses and electrical connections can be
made while running the assembly below the water line.
A specially designed buffer manifold mounted close
to the MPD choke manifold provides the connection
between the MPD flow spool in the riser and the MPD
choke manifold to the flowline. This manifold provides
all of the circulation requirements for the operation and
also incorporates the pressure relief system for the riser.
The Microflux MPD Choke Manifold is a specially
designed 5,000-psi manifold equipped with dual chokes.
It is instrumented with a Coriolis mass flowmeter and
precision quartz pressure sensors, which provide the
early kick detection system.
A high-rate two-phase separator is installed behind
the MPD manifold to allow gas handling. This addi-
tional high-rate gas separator is installed to avoid tying
into the existing mud gas separator.
System functionality
A main requirement for the system was to provide early
kick detection. This is achieved by directing return flow
through the MPD choke manifold and Coriolis meter.
The configuration allows backpressure to be applied as
soon as a kick is detected to control the well.
If a kick is not detected until the gas is inside the
marine riser, the system allows the surface annulus to
be closed. Once it is closed and circulation is stopped,
the subsea BOP can be closed to contain the gas in the
riser, making it possible to use either the MPD manifold
or rig choke manifold to circulate gas out in a con-
trolled manner.
Glomar Explorer operations
The deepwater MPD system is field proven. In one case,
it was used to measure pore pressures in carbonates
while drilling with an underbalanced fluid. Wellbore
pressure was controlled at all times during drilling, con-
nections, and tripping operations.
Kick detection has been successful at very low vol-
umes. Early in its application, the system detected a
2-bbl kick while drilling in carbonates. The MPD system
controlled the kick and managed wellbore pressures.
The upper part of the carbonate structure was drilled
using the constant bottomhole pressure (BHP) MPD
methodology without encountering losses. Losses were
observed once the first fractures were encountered and
increased as more fractures were exposed.
The MPD mode was changed from constant BHP to a
pressurized mud cap drilling system when losses could
no longer be managed with the mud supply. To con-
tinue drilling despite total losses, an oil-based cap fluid
was placed in the annulus to control annular pressures,
while seawater was pumped down the drillpipe. The sys-
tem allowed the well to be drilled to its targeted depth
safely. It also allowed formation pressures to be meas-
ured in real time and logs to be run safely.
The use of a deepwater MPD system to drill fractured
carbonate structures where total circulation losses are
experienced opens new opportunities to access difficult-
to-reach resources. The highly flexible system provides
multiple methodologies and capabilities that can be
applied according to well conditions and objectives. In
the drillship installation,
the MPD system enabled
drilling operations in other-
wise undrillable conditions
while improving safety and
efficiency.
The closed-loop Microflux MPD control
system minimizes risk to personnel and the environment
by accurately leveraging proprietary algorithms to detect
minute fluid influxes and losses with a degree of precision that
is unattainable using conventional equipment.
For more Deepwater
Advances articles, visit
EPmag.com
78-79 Deepater-Weatherford_La!out 1 1/22/11 9:45 PM Page 79
I
n the early days of formation evaluation, two types of
tools existed a resistivity tool and a porosity tool. Nei-
ther tool independently was able to provide what opera-
tors really wanted water saturation. If they knew the
water volume, subtraction would lead them to oil volume.
In 1952, G.E. Archie set out to master this problem by
formulating a relationship between resistivity and porosity
to derive fluid saturation. In clean reservoirs with consis-
tently saline formation water, this formula worked well.
But freshwater is less resistive than saline water, and
even within a single reservoir layer there can be variations
in formation water resistivity. Additionally, Archies equa-
tion did not take clay or shale effects into account. Over
the years, the equation has had to be continually tweaked
and modified to be representative of actual downhole
conditions.
Currently, different saturation equations exist to repre-
sent different oilfield environments, but assumptions
about the rock texture, formation water salinity, clay vol-
ume, and saturation exponent are required. Its all of
these assumptions that cause the shortcomings of stan-
dard saturation equations, said Tarek Rizk, Dielectric
Scanner product champion, Schlumberger Wireline.
The water resistivity, for instance, often is unknown not
only in exploration wells, but also in producing fields,
where injection water might have a different resistivity
than formation water. And since neither freshwater nor
oil conduct electricity very well, there will be little or no
resistivity contrast in formations with freshwater.
What has been needed was a logging tool that can
replicate fluid volume measurements that have been
conducted in core laboratories for years. These meas-
urements do not rely on water resistivity measurements
at all, making assumptions unnecessary. The Schlum-
berger Dielectric Scanner multifrequency dielectric dis-
persion service is the first such service to be introduced
to the market.
How it works
Dielectric logging tools are not new they were first intro-
duced more than 30 years ago. Their limitation has been
their single frequency. Interpretation of this information
cannot account for textural effects, invasion, mudcake
correction, and unknown or variable water saturations.
So what is dispersion? It is the variation of one param-
eter with respect to another. Rizk compared this to
measuring the length of a section of railroad track. It
can be measured very accurately, but if the ambient tem-
perature rises, the metal expands, and the track will no
longer measure the same, even though it is the same
piece of metal. It needs to be measured at several differ-
ent temperatures to characterize its true length.
In this case, dispersion is the variation of the measure-
ments with respect to frequency, he said.
The Dielectric Scanner takes four frequency measure-
ments ranging from 20 MHz to 1 GHz. The dispersion is
plotted, which gives an accurate measurement of the
dielectric conductivity and permittivity, or the ratio of the
flux density produced by an electric field in a given
The Dielectric Scanner is the newest member of the Schlum-
berger Scanner family of wireline tools and is fully combinable.
(Images courtesy of Schlumberger)
A new approach meets an old need
A new formation evaluation tool provides the missing link to accurately
determine water volume.
80
tech
WATCH
80-83 TechWatch-FEB_Laout 1 1/22/11 9:47 PM Page 80
81
dielectric to the flux density produced by that field in
a vacuum.
Without this, operators have to make the assumptions
that were made with the previous generation of tools,
he said.
The plot constructs an accurate radial profile of the
close-borehole region, providing new and unique infor-
mation on rock properties and fluid distribution for
advanced petrophysical interpretation.
The tool has multiple applications, including solving for:
Residual hydrocarbon volume in produced reservoirs;
Low-resistivity or low-contrast evaluation in shaly and
laminated sand formations;
Hydrocarbon volume and mobility in heavy oil
reservoirs;
Invaded zone water salinity;
Continuous Archie rock texture/cementation (nm)
log in carbonates for determining saturations beyond
the invaded zone; and
The cation exchange capacity to account for the
effect of clay volume in siliciclastics.
It also provides a high-resolution water-filled porosity
for thin-bed analysis.
The software provides quality control (QC) and inter-
pretation for the service. After preprocessing and apply-
ing QC to raw data, it performs a radial interpretation of
the different spacing and polarization measurements to
provide dielectric dispersion data. Lithology and porosity
analysis integrates measurements from different tools and
is performed in the same application to determine total
porosity and formation matrix permittivity. This informa-
tion is used with the dispersion in a final interpretation
step in which models determine water-filled porosity,
water salinity, and textural parameters.
The tool can log 3,600 ft/hr (1,097 m/hr) and provides
a vertical resolution of 1 in. It has a depth of investigation
of 1 to 4 in. and can withstand temperatures of 302F
(150C) and pressures up to 25,000 psi. Measurements
can be taken in both water- and oil-based muds.
Case studies
In an application in the Middle East, the operating com-
pany wanted to improve understanding of fluid satura-
tions in a high-porosity carbonate reservoir where
variability in Archie n and m components increased
uncertainty in conventional log interpretation. The
measurements also were ambiguous because of the
mud and filtrate salinity.
The carbonate textural information provided by the
scanner provided accurate nm determination without
relying on assumptions or sending samples to the labora-
tory. Having these accurate values helped in calculating
saturation values from resistivity. The operator discovered
a large volume of residual hydrocarbon in the formation.
Another operator in the Orinoco heavy oil belt in
Venezuela realized an additional 150 ft (46 m) of pay
using the scanner. The production potential of the lami-
nated reservoir could not be determined accurately with
conventional logs because thinly bedded sand and shale
layers decreased resistivity measurements and masked pay
zones. The result was a pessimistic interpretation of the
hydrocarbon volume.
The scanner provided important information about the
reservoir quality of the lower interval, revealing movable
oil over a 150-ft section. Sidewall samples confirmed the
measurements.
On a project in Canadas oil sands, an operator had to
wait several months for core analysis because the reservoir
had varying water salinity and thus resistivity. The core
results indicated that estimates of resistivity in the
uncored sections were inaccurate.
With water-filled porosity calculated from the disper-
sion measurements, the weight percent of the bitumen
could be determined accurately without the need for core
analysis, saving considerable time and money.
With access to these types of measurements, operators
can stop making assumptions about the fluid in their
wells.
In this example, movable heavy oil has been confirmed by side-
wall cores. Although the resistivity in Track 5 and nuclear mag-
netic resonance in Track 7 cannot readily distinguish between
oil and formation freshwater below the oil-bearing interval from
X,430 to X,500 ft, Dielectric Scanner measurements of fluid vol-
umes (Track 6) and the resulting saturations (Track 2) clearly
reveal significant movable heavy oil down to X,720 ft, as con-
firmed by sidewall core analysis.
80-83 TechWatch-FEB_Laout 1 1/22/11 9:47 PM Page 81
80-83 TechWatch-FEB_Layout 1 1/23/11 8:08 PM Page 82 80-83 TechWatch-FEB_Layout 1 1/23/11 8:08 PM Page 83 80-83 TechWatch-FEB_Layout 1 1/23/11 8:08 PM Page 82 80-83 TechWatch-FEB_Layout 1 1/23/11 8:08 PM Page 83
84
Biodegradable product eliminates bacteria
Universal Bacteria Specialist has launched a new anolyte
product to eliminate bacteria from hydraulically fractured
wells. The environmentally friendly biocide contains no
harmful products and is 100% biodegradable.
The Electro-Chemical Activation Technology (ECAT)
anolyte achieved a superior bacteria kill count when
tested in the fracing process of 10 wells in the Barnett
shale and West Texas. Depending on the impurities of
the source water used for fracing, the ECAT anolyte typi-
cally requires 0.5 to 1 gal of product for each 1,000 gal
of water injected into the formation. The product load-
ings are significantly reduced from other anolyte treat-
ments, which require 8 to 25 gal of product per 1,000
gal of water to achieve a satisfactory bacteria kill rate.
The process uses cell membrane technology that creates
a pure anolyte with a shelf life that exceeds six months,
eliminating the need for space formerly required for
onsite manufacturing. www.universalbacteria.com
High-temperature downhole pumps
allow operators to use PCPs
R&M Energy Systems new line of Moyno HTD high-
temperature downhole pumps provide a solution to
high-temperature applications that previously prevented
operators from using downhole progressing cavity
pumps (PCPs).
The HTD350 downhole pump has an elastomeric stator
that is mechanically secured to the stator tube for greater
temperature and chemical resistance. Additional features
include:
The ability to handle downhole temperatures to 350F
(177C);
A patented design that mechanically secures the stator
elastomer without using a bonding agent between the
elastomer and the stator tube; and
Compatibility with steam-injection applications without
removing the stator from the well. www.rmenergy.com
Hydraulic actuator
eliminates mess
GDS International has
released its new hydraulic
IBOP actuator that can
open or close the top drive
while it is in rotation, elimi-
nating the mess often asso-
ciated with other actuator
models that must stop
rotating before opening or
closing. The compact body
of this actuator also allows
ample room for the eleva-
tor links to pass by, and its
simple design means fewer
parts and seals to be main-
tained. The field-installable
GDS IBOP actuator is
designed to fit any major
brand top drive. www.globaldrillingsupport.com
Software enhancements
improve subsurface definition
Austin GeoModelings 3-D geological interpretation soft-
ware, RECON, now includes the new Geologic Scenario
Manager, an interpretation version control utility that
improves geological interpretation workflow by allowing
users to run and assess multiple interpretation scenarios
on the fly. In addition, the new RECON Petrel Plug-in
enables fast and efficient data sharing, providing an inte-
grated environment for exceptional collaboration.
According to the company, the softwares automated
Cascade Technology increases productivity and accuracy
by delivering instant recalculation and visualization of
structure and attributes when new data are added or
edited and seamlessly incorporating them into the Petrel
geocellular modeling workflow.
RECON also includes usability enhancements to the
StratalSlice application for geomorphological or stratal
time slicing. StratalSlice divides any seismic data volume
tech
TRENDS
The Moyno HTD350 downhole pump has undergone extensive R&D
as well as thorough in-field application testing. (Image courtesy of
R&M Energy Systems)
The IBOP actuator can open or
close the top drive while it is in
rotation. (Image courtesy of
GDS International)
84-86 TechTrends_Laout 1 1/22/11 9:49 PM Page 84
85
of time-varying internal thickness into uniform geologic
time increments, making seismic imaging of depositional
systems easier. www.focusongeology.com
New software accurately models
hydrocarbon assets
Halliburtons Landmark Software and Services has released
version 5000.4 of the Nexus reservoir simulation software
suite for total asset management that allows companies to
accurately model hydrocarbon assets, enabling rapid deci-
sions on high-dollar development scenarios.
The software gives reservoir engineers a solution that
provides significant advances in integrated reservoir and
facility modeling. New capabilities include dual porosity
for modeling naturally fractured reservoirs, loosely cou-
pled geomechanics for modeling subsidence, and a new
visualization module for analyzing well and surface facil-
ity results.
According to Halliburton, benchmarking efforts against
a range of existing, commercially available simulators have
demonstrated that Nexus software is on average five times
faster, enabling engineers to evaluate more production sce-
narios with increased detail. The surface facility integration
allows for the coupling of multiple reservoir models
through a common surface network.
In addition, Nexus software performs simulation of the
surface and subsurface simultaneously unlike traditional
approaches that solve them separately to provide better
results for more informed decisions. www.halliburton.com
Axial flow impeller improves efficiency
The Chemineer XE-3 is a high-efficiency axial flow impeller
for heat transfer, blending, and solids suspension applica-
tions. The impeller is as much as 10% more efficient than
the HE-3 and other high-efficiency impellers in turbulent
mixing, the company said, which can reduce energy costs
in both new and retrofit applications.
The mechanical design of the XE-3 impeller reduces
weight, allowing longer shafts without the need for addi-
tional support. The impeller technology can be applied
across a range of applications, ensuring repeatable
results from laboratory scale to full-scale operations.
www.chemineer.com
Handheld laser measure
ideal for high-risk rigs
CorDEX Instruments has launched the LaserMETER-
3000XP, a dynamic, custom-designed distance measure-
ment tool for offshore workers. Personnel working on
offshore high-risk rigs and installations currently must
obtain special hot work permits to use standard elec-
tronic measuring devices. The handheld tools robust
IP65 flameproof design is ATEX and IEC/Ex Zone 1 IIC
T4 hazardous (explosive) area certified, making it ideal
for high-risk rigs.
The laser meter has been built with a rugged industrial-
grade construction. Because it is encased in tough alu-
minium, the tool can withstand harsh environments,
accidental falls, or knocks. In addition, the tool has simple
operating functions for workers in hazardous areas wearing
protective gloves and offers quick and accurate distance,
volume, and area measurements in explosive areas.
www.cordexinstruments.com
Ashley E. Organ, Assistant Editor
tech
TRENDS
Chemineer XE-3 impellers are available in carbon steel, 316/316L
stainless, and high alloys, along with an extensive array of coat-
ings. (Image courtesy of Chemineer Inc.)
The handheld LaserMETER3000XP can withstand harsh environ-
ments, accidental falls, or knocks. (Image courtesy of CorDEX
Instruments)
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87
international
SPOTLIGHT
W
ith stable political, economic, and social environ-
ments and a cohesive energy strategy, Uruguay
could be Latin Americas best kept secret.
According to state-owned Administracin Nacional de
Combustibles, Alcoholes, y Portland (ANCAP), Uruguays
geology is similar to that of neighboring producing
basins. This obvious hydrocarbon potential led ANCAP
to launch Uruguay Round 2009, which according to
ANCAP, opened a new industrial area for development in
the country despite the tough financial and commodity
pricing environment ruling when it was launched in
December 2008.
Several companies expressed interest in the first round,
and six companies BHP Billiton, Galp Energia, Petrleos
de Venezuela, Pluspetrol, Petrobras, and YPF qualified to
submit offers. Galp, Petrobras, and YPF formed a consor-
tium and won blocks 3 and 4 in the Punta del Este Basin.
YPF operates Block 3 and Petrobras operates Block 4.
On Nov. 9, 2010, Uruguay announced Uruguay Round
II, which includes blocks in three basins: Punta del Este,
Pelotas (southern portion), and Oriental del Plata, which
are genetically related to the Western Gondwana breakup
and the subsequent development of the Atlantic Ocean.
Hydrocarbon potential
The Punta del Este Basin is a northwest to southeast
trending aborted rift that is perpendicular to the conti-
nental margin. The Pelotas Basin belongs to the flexural
border of a precursor rift structure. The Oriental del
Plata Basin developed in the Paleocene when the Punta
del Este and Pelotas basins began functioning as a single
sedimentary environment.
The Uruguayan continental margin has shown evi-
dence of hydrocarbons that confirm hydrocarbon genera-
tion and the presence of an active petroleum system,
ANCAP said. Correlations exist among Uruguayan basins
and neighboring basins, which allows an integrated petro-
leum system to be elaborated offshore.
Seismic data
In addition to well logs and reports, ANCAP obtained
7,456 miles (12,000 km) of 2-D seismic data between 1970
and 1982. Also available to potential bidders are several
more recent 2-D seismic multiclient geophysical surveys
gathered between 2002 and 2008 by CGGVeritas and
Wavefield Inseis.
ANCAP is planning to obtain new seismic information
that includes a contract with GXT/ION for acquisition,
processing, and interpretation of 1,864 miles (3,000 km)
of 2-D data. There also is the possibility of an aeromag-
netic survey by Fugro. In addition, ANCAP intends to
acquire access to satellite images, an electromagnetic sur-
vey, reprocessed oil seismic data, multiclient fluid inclu-
sions analysis and report, and a new 2-D seismic survey
covering 3,107 miles (5,000 km).
Uruguay Round II already has received a high level of
interest from companies such as ExxonMobil, El Paso,
Petrobras, Vale do Rio Doce, ONGC Videsh, Statoil,
Perenco, Karoon Gas, and Eni. ANCAP will continue to
promote the bidding round throughout 2011. For addi-
tional information, visit www.rondauruguay.gub.uy.
Nine offshore blocks are being offered in Uruguay Round II.
(Map courtesy of ANCAP)
Uruguay presents
offshore opportunities
Building on the success of the first bidding round, Uruguay offers nine offshore blocks for
exploration and development.
Ashley E. Organ, Assistant Editor
87 Spotlight-FEB_La!ot 1 1/22/11 10:10 PM Page 87
T
he Arctic presents a large number of challenges for
the oil and gas industry. From an HSE standpoint,
there are the low-temperature work environment; the
need to transport people, equipment, and supplies over
great and relatively uninhabited distances; darkness; and
the need to provide a safe means of evacuation in the
case of an emergency.
From a construction standpoint, contending with
freezing temperatures, icing, and ice loads are the pri-
mary concerns.
There is no easy solution to any one of these issues.
Collectively, they pose a formidable challenge.
Arctic appeal
According to Steven Kopits, managing director of Dou-
glas-Westwood, New York, The word arctic is a term
apart in the oil and gas business. Instead of identifying
a true geographical region, the word describes an area
that is characterized by extremely harsh weather condi-
tions, including ice. This definition means E&P activity
being carried out offshore Norway as well as those off-
shore the Canadian province of Newfoundland and
Labrador fall into the category of arctic operations.
With that definition in place, it is possible to identify
more than 400 oil and gas fields that lie in arctic terri-
tory. Those fields, according to Kopits, hold an esti-
mated 240 Bboe.
Meanwhile, a 2008 report issued by the US Geological
Survey quantifies reserves within the Arctic Circle at 90
Bbbl of oil, 1,669 Tcf of natural gas, and 44 Bbbl of natu-
ral gas liquids, of which approximately 84% is offshore.
With this much oil and gas at stake, the industry has
enormous incentive to find a way to safely and efficiently
produce arctic fields.
Technology landscape
Roger Basu, director corporate shared technology and
head of Arctic programs at the American Bureau of
Shipping (ABS), believes one of the main technology
challenges today is working out the ice loads for off-
shore structures.
Floating structures have to be able to withstand ice
forces that typically exceed the forces exerted by waves,
wind, and current. In the Arctic, the ice load generally
is the designing load. Ice exerts forces on the platform,
and those forces vary based on the thickness, speed,
age, and strength of ice, which can be in the form of
level sea ice, ice ridges, and icebergs.
One traditional source of information for ice loads
is the data gathered from a few offshore structures that
were installed in what Basu referred to as the First Ice
Age, which took place in the mid-1980s. Measure-
ments from these projects are the main source of infor-
mation used to calibrate models that we derive using
engineering principles, he said.
The other source is model scale tests that can be done
in ice tanks. There are not many of these in the world.
The tank at the National Research Council (NRC) in St.
Johns, Newfoundland, is one of the main ones, Basu
said. Although it is not doing so now, ABS has worked
with this facility in the past.
I think the really new thing, at least in this context,
is numerical methods, Basu said. These are computer-
based models that are used to simulate ice structure
interactions. Thats what I would say is the big new thing
on the horizon. People have been working on these for
at least a decade or so, but they are starting to become
practical for our use to come up with reasonable ice
loads estimates.
A third significant consideration, Basu said, is ice
management. Certainly for drilling projects and for
some production projects, you do have to have ice
management in place where youre trying to control
the environment around the installation.
Abdel Ghoneim, senior principal engineer at
DNV, agrees in principle with Basus assessment. His
concern is that although progress is being made on
many fronts, the efforts have not been evaluated and
assessed as a whole.
Innovative technology
takes on the Arctic challenge
Enormous reserves volumes have drawn the industrys attention to the Arctic,
but a broad range of technologies must be further developed and implemented
if the hope of producing these vast resources is to be realized.
Judy Murray, Editor
88 February 2011 | EPmag.com
REGIONAL REPORT:
ARCTIC
88-94 RR-Arctic-Overview_Layout 1 1/22/11 11:47 PM Page 88
REGIONAL REPORT:
ARCTIC
Arctic development is technologically feasible,
but the different technologies needed are at very
different stages. It is feasible for us to start working
there, Ghoneim said, but for true progress to be
made, these challenges have to be approached as a
system.
Ghoneim has identified 20 arctic challenges that
have to be addressed and has ranked them on a per-
centage scale in terms of the amount of progress the
industry has made to date, with 100 representing full
industry readiness. The majority of the challenges he
enumerated are structural because this is his area of
specialization, but there are additional issues that go
beyond the physical ability of structures to work safely
in the Arctic. This is my own assessment, he said.
Some of the areas of investigation are much fur-
ther along than others, Ghoneim said, noting some
in which progress has been considerable. Icing, for
example, and ultimate strength of hull structures are
rated at 90.
While it is important to bring these areas of technol-
ogy to completion, it is more important to address the
areas in which significant work is needed.
When asked to list the top five areas for research,
Ghoneim listed technologies from both the upper
and lower ranking in his Top 20. He named low-
temperature designs for drilling and production sys-
tem operations as number one and year-round ice
management as number two in terms of importance
for the industry.
The third area he identified was structural design.
A lot of work has been done on this, he said. I
think we are 80% of the way to finding solutions.
Concentrating efforts on this area could get the
industry all the way there.
Number four on the list is risk analysis and acci-
dent preparedness, which he ranks at just 30% in
terms of readiness. This is an area where the indus-
try is lacking. The $1 billion being spent now after
the Macondo incident in the Gulf of Mexico will
result in preparedness that I believe will be helpful
in developing similar plans in the Arctic.
Number five is crew qualification and training. The
personnel challenge is compounded by the remote
and harsh working environment in the Arctic. The
industry as a whole is having staffing difficulties,
Ghoneim pointed out, explaining, When you add
the elements of ice and darkness into the equation,
you complicate the staffing issue considerably. It is a
very tough environment to work in. Attracting the
best and brightest is going to be extremely difficult.
Icebergs are one of the
many threats to Arctic
operations. (Image
courtesy of DNV)
T
he Arctic presents a large number of challenges for
the oil and gas industry. From an HSE standpoint,
there are the low-temperature work environment; the
need to transport people, equipment, and supplies over
great and relatively uninhabited distances; darkness; and
the need to provide a safe means of evacuation in the
From a construction standpoint, contending with
freezing temperatures, icing, and ice loads are the pri-
mary concerns.
There is no easy solution to any one of these issues.
Collectively, they pose a formidable challenge.
Arctic appeal
According to Steven Kopits, managing director of Dou-
glas-Westwood, New York, The word arctic is a term
apart in the oil and gas business. Instead of identifying
a true geographical region, the word describes an area
that is characterized by extremely harsh weather condi-
tions, including ice. This definition means E&P activity
being carried out offshore Norway as well as those off-
shore the Canadian province of Newfoundland and
Labrador fall into the category of arctic operations.
With that definition in place, it is possible to identify
more than 400 oil and gas fields that lie in arctic terri-
tory. Those fields, according to Kopits, hold an esti-
mated 240 Bboe.
Meanwhile, a 2008 report issued by the US Geological
Survey quantifies reserves within the Arctic Circle at 90
Bbbl of oil, 1,669 Tcf of natural gas, and 44 Bbbl of natu-
ral gas liquids, of which approximately 84% is offshore.
With this much oil and gas at stake, the industry has
enormous incentive to find a way to safely and efficiently
produce arctic fields.
Technology landscape
Roger Basu, director corporate shared technology and
head of Arctic programs at the American Bureau of
Shipping (ABS), believes one of the main technology
challenges today is working out the ice loads for off-
shore structures.
Floating structures have to be able to withstand ice
forces that typically exceed the forces exerted by waves,
wind, and current. In the Arctic, the ice load generally
is the designing load. Ice exerts forces on the platform,
and those forces vary based on the thickness, speed,
age, and strength of ice, which can be in the form of
level sea ice, ice ridges, and icebergs.
One traditional source of information for ice loads
is the data gathered from a few offshore structures that
were installed in what Basu referred to as the First Ice
Age, which took place in the mid-1980s. Measure-
ments from these projects are the main source of infor-
mation used to calibrate models that we derive using
engineering principles, he said.
The other source is model scale tests that can be done
in ice tanks. There are not many of these in the world.
The tank at the National Research Council (NRC) in St.
Johns, Newfoundland, is one of the main ones, Basu
said. Although it is not doing so now, ABS has worked
with this facility in the past.
I think the really new thing, at least in this context,
is numerical methods, Basu said. These are computer-
based models that are used to simulate ice structure
interactions. Thats what I would say is the big new thing
on the horizon. People have been working on these for
at least a decade or so, but they are starting to become
practical for our use to come up with reasonable ice
loads estimates.
A third significant consideration, Basu said, is ice
management. Certainly for drilling projects and for
some production projects, you do have to have ice
management in place where youre trying to control
the environment around the installation.
Abdel Ghoneim, senior principal engineer at
DNV, agrees in principle with Basus assessment. His
concern is that although progress is being made on
many fronts, the efforts have not been evaluated and
assessed as a whole.
Innovative technology
takes on the Arctic challenge
Enormous reserves volumes have drawn the industrys attention to the Arctic,
but a broad range of technologies must be further developed and implemented
if the hope of producing these vast resources is to be realized.
Judy Murray, Editor
88 February 2011 | EPmag.com
REGIONAL REPORT:
ARCTIC
REGIONAL REPORT:
ARCTIC
Arctic development is technologically feasible,
but the different technologies needed are at very
different stages. It is feasible for us to start working
there, Ghoneim said, but for true progress to be
made, these challenges have to be approached as a
system.
Ghoneim has identified 20 arctic challenges that
have to be addressed and has ranked them on a per-
centage scale in terms of the amount of progress the
industry has made to date, with 100 representing full
industry readiness. The majority of the challenges he
enumerated are structural because this is his area of
specialization, but there are additional issues that go
beyond the physical ability of structures to work safely
in the Arctic. This is my own assessment, he said.
Some of the areas of investigation are much fur-
ther along than others, Ghoneim said, noting some
in which progress has been considerable. Icing, for
example, and ultimate strength of hull structures are
rated at 90.
While it is important to bring these areas of technol-
ogy to completion, it is more important to address the
areas in which significant work is needed.
When asked to list the top five areas for research,
Ghoneim listed technologies from both the upper
and lower ranking in his Top 20. He named low-
temperature designs for drilling and production sys-
tem operations as number one and year-round ice
management as number two in terms of importance
for the industry.
The third area he identified was structural design.
A lot of work has been done on this, he said. I
think we are 80% of the way to finding solutions.
Concentrating efforts on this area could get the
industry all the way there.
Number four on the list is risk analysis and acci-
dent preparedness, which he ranks at just 30% in
terms of readiness. This is an area where the indus-
try is lacking. The $1 billion being spent now after
the Macondo incident in the Gulf of Mexico will
result in preparedness that I believe will be helpful
in developing similar plans in the Arctic.
Number five is crew qualification and training. The
personnel challenge is compounded by the remote
and harsh working environment in the Arctic. The
industry as a whole is having staffing difficulties,
Ghoneim pointed out, explaining, When you add
the elements of ice and darkness into the equation,
you complicate the staffing issue considerably. It is a
very tough environment to work in. Attracting the
best and brightest is going to be extremely difficult.
Icebergs are one of the
many threats to Arctic
operations. (Image
courtesy of DNV)
90
Regulations,
the environment
Although the physical challenges
are formidable, there are other
issues that will be obstacles for
companies that want to move
into the Arctic. According to
Basu, the very different regula-
tory environments that exist in the countries that have
acreage in the Arctic Russia, Norway, the US, Green-
land, and Canada poses a hurdle for operators.
In general, Basu said, The permitting environment is
more challenging now than it was in the First Ice Age 25
years ago. For one thing, were more concerned about
the environment than we were before.
Increased environmental concerns have resulted in
more stringent expectations for operating companies.
We need to be concerned about the environmental
footprint of these operations. If youve got let me
exaggerate to make a point five icebreakers providing
ice management services, they use up a lot of fuel, so
theyre pumping a lot of air emissions into the atmos-
phere. Thats something people worry about and some-
thing companies will have to contend with.
Escape, evacuation, and rescue (EER) is another big,
big challenge, according to Basu. Its hard enough in
open water, but once you get into the Arctic where its
very remote, coming up with an EER system that ensures
the safety of personnel is a challenge. You have to be
able to convince the agency that is going to give you per-
mission to work in the area that you have a good system
in place to protect people and to rescue them in the
In fact, EER is the subject of considerable research at
present.
Safety at sea
According to Antnio Simes R, who is heading the
group at the NRC that is investigating EER, todays
lifeboats are a particular concern for Arctic operations.
Simes R, senior research engineer at the Institute for
Ocean Technology in St. Johns, Newfoundland and
Labrador, Canada, says lifeboats that work in arctic envi-
REGIONAL REPORT:
ARCTIC
There is a staffing challenge
throughout the oil and gas
industry, and that challenge is
compounded in the Arctic by the
remote and harsh working environ-
ment. (Image courtesy of DNV)
For the industry to make the most rapid progress, Arctic challenges
need to be approached as a system. (Chart courtesy of DNV)
TOP 20 ARCTIC CHALLENGES
Challenge Rank Status (%)
Low temperature design and
operation experience feedback 1 70
Year-round operation operational
risks, ice management 1 60
Structural design: ice and
environmental loading 1 80
Risk analysis accident
preparedness 1 30
Rules and Regulations
development 2 70
Adequate arctic experience 2 50
Quick disconnectable structures 2 65
Icing 3 90
Ice management 2 60
Analytical modeling 3 80
Ultimate strength of hull structures 2 90
Consensus 3 40
Ice scour 2 60
Real-time ice environment
data gathering 2 70
Arctic transportation
and navigation 1 70
Fatigue strength of hull
structures in ice 4 60
Crew qualifications, training,
and EER implementation 1 60
Permafrost and arctic
infrastructure requirements 1 60
Who owns the Arctic? 4 50
Effects of global warming/climate
change/environmental challenges 3 30
88-94 RR-Arctic-Overview_Laout 1 1/22/11 11:05 PM Page 91
Thursday, March 24, 2011
BlackHorse Country Club
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Wildcatters' Open Committee
Don Crow, Lufkin Industries - Tournament Chairman
Ron Barnes, Oil and Gas Asset Clearinghouse
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Melinda Faust, Drillinglnfo, Inc.
Charles Hall, ING Capital
Tina Hamlin, IPAA
Bob Jarvis, IPAA
Russell Laas , Hart Energy Publishing L.P.
C.W. Macleod , Sanchez Oil and Gas
Dan Steele, Bank of Texas
Amber Vasquez, Network International, Inc.
Colin Westmoreland , Drillinglnfo, Inc.
Sponsorship is the only way to guarantee a spot in the tournament and space is limited so register early.
For more information, contact Nikki McDermott at nmcdermott@ipaa.org or 800\433-2851 or visit IPAA Meetings
online at www.ipaa.org
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ronments need considerably different capabilities from
those that operate in benign climates. His group has been
working for several years on this problem, and that work
has paid off considerably in the past two years in particu-
lar, Simes R said.
Initial investigation identified problems with the evac-
uation craft, which led to critical questions, the most sig-
nificant of which was, Is fiberglass safe to go into the
Arctic?
In other words, Simes R said, From an engineering
point of view, we tried to determine if this is the right
material. The second question we wanted to answer is
how fast the craft could go safely through an ice field.
The desire to answer those two questions was the foun-
dation for the research program that followed.
We did quite a bit of work, including laboratory tests
where we actually impacted a piece of ice under condi-
tions where the exact speed was known so we could calcu-
late the force the material had to withstand. We
performed a lot of standard material tests (e.g., destruc-
tive testing of fiberglass panels) to find out the adequacy
of fiberglass as a construction material for Arctic and sub-
Arctic regions and, for example, the consequences of
cycling between hot and cold temperatures with regard to
fiberglass material properties.
That approach led the team to consider using differ-
ent materials. What would happen, for example, if we
made the fiberglass tougher? Simes R asked. That
query spurred Simes R and his team to investigate S-
glass, the stuff that you make bulletproof vests out of.
In very simple terms, Simes R explained, S-glass is a
purer type of glass than regular fiberglass, which means
that it is stronger.
A closer inspection of the operational performance of
the lifeboat design revealed that it was underpowered
and not particularly maneuverable.
In 2010, when the team carried out extensive testing
on lifeboat shape and functionality, it became clear that
the propulsion system was not designed for the shape of
the hull, which meant that the vessels had inadequate
maneuverability and powering. Without sufficient
power, it isnt possible for the evacuation craft to con-
tend with ice. Instead of making its way efficiently to
safety, the vessel would end up meandering through the
ice field, Simes R explained.
Improvements followed, with the team designing a
suitable propeller and nozzle for the lifeboat. Due to the
costs associated with manufacturing a specialty propeller
and nozzle, the team decided to check the market for
substitutes that had the majority of the characteristics of
the redesigned system.
In the short term, we wanted
to increase the thrust, which we
believed we could do if we
designed the propeller and noz-
zle properly, Simes R said.
Modifications resulted in a
100% increase in thrust for an
investment of less than 5% of
the lifeboat value. Another
thing we looked at was naviga-
tion, which was very difficult
using the gyro compasses tradi-
tionally used on lifeboats. Our
solution was to buy a marine GPS
at a relatively modest cost.
In addition to the engineer-
ing questions, the team was con-
cerned with the ergonomics
within the vessel and how they
would impact personnel.
We began to quantify the
environment inside the
lifeboat, he said. In the past,
we only had a few sensors. Now,
we have arrays of sensors that
92
REGIONAL REPORT:
ARCTIC
When the NRC team carried out lifeboat tests in icy lake waters, they discovered the craft was
underpowered and not particularly maneuverable. (Image courtesy of the National Research
Council of Canada)
allow us to look at CO, CO
2
, light levels, and
noise levels, not just in a few spots, but distrib-
uted along the lifeboat.
Knowing what personnel in the lifeboat can
feel allows designers to make more precise
improvements. We know that the people in the
stern might be exposed to different CO
2
levels
than the people at the bow, and that led us to
look more closely at the vessel habitability.
The great thing about these modifications,
he said, is that they can be done at a very low
cost and they can be done on evacuation craft
that is in the field.
With all of the progress that has been made, Simes
R believes there is still a long way to go. What we are
finding is that all of these concerns have to be addressed
before safe deployment of evacuation craft can be car-
ried out further north. I think specially designed crafts
will have to address the extremely harsh conditions in
this area.
93
Icing over can cause problems for workers in Arctic
regions. (Image courtesy of DNV)
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95
U
S Geological Survey studies estimate that the Arctic
accounts for about 13% of the undiscovered oil, 30%
of the undiscovered natural gas, and 20% of the undis-
covered natural gas liquids in the world. Having identi-
fied the reserves, the challenge now is to develop the
technologies that will allow successful E&P activity in the
harsh environmental conditions that characterize this
region. Funding industry research will be vital to the suc-
cess of Arctic operations.
Sensing threatening ice
ITF, a not-for-profit organization owned by 27 major
global operators and service companies, has identified
technology needs that will allow the industry to venture
farther into the Arctic frontier. As a technology facilitator,
ITF recently has launched two joint industry projects
(JIPs) to tackle some of the challenges relating to sea ice
in relation to oil and gas E&P and is working with a third
proposal that likely will launch this year.
One of the projects in progress is RAIDACT, a six-
month feasibility project being undertaken by Systems
Engineering & Assessment Ltd. (SEA). SEA has a back-
ground in designing and building radars with a
range of applications, with recent projects
including minefield detection
and investigation of foliage penetration. The current proj-
ect focuses on the challenge of detecting and classifying
sea ice approaching a platform.
Mobile ice can cause difficulty in Arctic campaigns,
and this project ultimately could lead to a system that
would provide the ability to detect and identify ice that
poses a danger and enable more accurate decisions to
be made with respect to whether operations can con-
tinue or whether it is necessary to stop operations and
move facilities off station.
The project is transferring know-how from other indus-
tries to the issue of Arctic sea ice. Alan Fromberg, ground
systems business manager in SEAs aerospace division,
explained, What we are doing in this project is bringing
our experience from other sectors and trying to improve
understanding of how the oil and gas industry can opti-
mize its use of radar to detect sea ice. For example, there
are commonly a number of navigation radars on a drilling
platform which might only be used in getting the platform
to the location, so we are looking at whether this kind of
equipment can be used in a different way or enhanced,
what information about sea ice the industry needs, and
what we could add to radar already on the rig to
optimize the information acquired.
It would be relatively straight-
forward to design
New technologies help break
Arctic E&P barriers
The ability to access hydrocarbon resources from increasingly challenging environments will
be critical in meeting growing global energy demand.
Sheila Batchelor, ITF
Mobile ice can cause
difficulty in Arctic
campaigns.
REGIONAL REPORT:
ARCTIC
95-97 RR-Arctic-ITF_Layout 1 1/22/11 11:34 PM Page 95
95-97 RR-Arctic-ITF_Laout 1 1/22/11 10:00 PM Page 96
Oil and Gas
Invest
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REGIONAL REPORT:
ARCTIC
a state-of-the-art radar system to detect sea ice, Fromberg
said, but the cost potentially could run into millions of
pounds. What we want to do here is focus down on the
optimum solution, looking at what information is really
needed and how the technology already in use within the
industry could be adapted.
Costs associated with halting drilling operations and
repositioning a rig are high, and better information about
the state of the ice and how rapidly it is moving could help
avoid unnecessary stoppages as well as reducing the likeli-
hood of an accident. Eliminating unnecessary rig moves
also could reduce the likelihood of an accident.
There are a number of radar configurations and types
that are used for a range of applications. Frequency is
important to system operations. Higher frequencies give
more information about the surface of the ice, with lower
frequencies giving greater penetration. Low-angle radars
such as navigation radars can detect certain types of ice
but cannot classify them.
For instance, chunks of floating ice, known as growlers,
are difficult to detect with ship-mounted radars. High-
angle polarimetric radar systems, which are used on earth
observation satellites, have been proven as a means of clas-
sification, but the repeat cycles are long, data delivery is
not in real time, and the data have to be processed.
Researchers at SEA believe it is possible to design a sys-
tem that will provide real-time ice classification and plot-
ting based on polarimetric radar.
One approach might be to design a system which, most
of the time, is transmitting and receiving from the rig,
Fromberg said, but if something of concern appears, an
unmanned aerial vehicle (UAV) could be launched to col-
lect extra data. Flying above the target gives the higher
viewing angle required for polarimetric measurements to
distinguish different characteristics of the ice,
such as thickness and other properties that help
to predict how much damage it might do.
The usual issue with radar from a small UAV is
that there is not enough power onboard to han-
dle the large amounts of data produced. Pro-
cessing data on board requires a bigger and
more expensive aircraft, he said, so it makes
sense to put as much of the transmitting and
receiving infrastructure on the rig as possible
and to use transponder technology on the UAV
to receive and transmit back to the rig, where
the data is processed and decisions are made.
More JIPs in the works
According to ITF managing director Neil Poxon,
there is great potential for this JIP as well as the
subsequent industry efforts it could generate.
This project gives a fascinating insight into
just one of the many technology challenges
associated with exploration and production in
Arctic areas, Poxon said. We are also working
with a proposal for a project to develop an ice
strengthened lifeboat concept, submitted by Canadian
Naval Architect and Marine Engineering company Robert
Allan Ltd., which I hope will launch later in the year.
The Canadian proposal and the RAIDACT project high-
light the range and scale of the technology development
challenge associated with tackling new and hostile areas
such as the Arctic. Other significant challenges Poxon has
enumerated for this area include subsea installations, long
tiebacks, and flow assurance.
Looking at the bigger picture, I strongly believe that a
collaborative, global approach to technology develop-
ment is crucial to the future of the oil and gas industry
and its ability to access remaining reserves from increas-
ingly challenging environments, Poxon said. We are
actively pursuing this goal with our plans for 2011 and
beyond. Establishing bases in key regions around the
world will help us to engage more effectively with our
current members, potential new members, and the wider
technology development community, with the ultimate
goal to focus on the most important global technology
needs, understand more about the expertise available,
and find the best solutions.
Icebergs and sea ice present HSE concerns for workers in the Arctic.
95-97 RR-Arctic-ITF_Layout 1 1/22/11 11:34 PM Page 97
98
international
HIGHLIGHTS
Middle East
Noble Energy hits gas offshore Israel
Noble Energy Inc. has made a significant natural gas
discovery in the Leviathan field offshore Israel. Drilled
in the Rachel license to 16,960 ft (5,170 m), the well
encountered a minimum of 220 ft (67 m) of net natural
gas pay in several subsalt Miocene intervals.
The #1 Leviathan well lies about 80 miles (130 km)
offshore Haifa and 29 miles (47 km) southwest of the
companys earlier Tamar discovery in approximately
5,400 ft (1,645 m) water depth. Results from the well
confirm the predrill estimated resource range, with a
gross mean for Leviathan of 16 Tcf.
Oil find onshore Syria
Gulfsands Petroleums Twaiba-1 exploration well has dis-
covered oil in two intervals in the Shiranish and Massive
formations in Syria. The well has been drilled to a total
depth of 6,614 ft (2,016 m). The Shiranish formation
contains a net pay section of approximately 102 ft (31
m), from 6,142 to 6,512 ft (1,872 to 2,003 m) measured
depth. The Massive formation contains a net reservoir
section of approximately 26 ft (8 m).
Oil production increases in Iraq
Eni, Occidental Petroleum Corp., and Korea Gas Corp.
have achieved a 10% increase in oil production from the
Zubair field near Basra in southern Iraq. Production
from the field has grown to more than 200,000 b/d of
oil from the approximately 183,000 b/d of oil produced
when field operations began in 1Q 2010. The consor-
tium plans to increase production to 1.2 MMbbl/d of
oil, representing an increase of about 1 MMbbl/d of oil.
Africa
Second Tanzanian well hits gas
BG Groups second Tanzanian exploration well, Chewa-
1, has discovered gas in Block 4, approximately 50 miles
(80 km) offshore southern Tanzania in approximately
4,265 ft (1,300 m) water depth. The well is approxi-
mately five miles (8 km) northwest of the companys
Pweza-1 gas discovery.
Dana hits pay in Gulf of Suez
Dana Petroleum has successfully drilled the Nefertiti-1X
exploration well to 14,150 ft (4,313 m) measured depth,
targeting a prospect in the Asl sands. The well is in the
Nefertiti prospect in the South October production-
sharing contract area in the Gulf of Suez offshore Egypt.
Nefertiti-1X encountered 65 ft (20 m) of oil-bearing
sands. During the drillstem test, the well flowed 1,544
b/d of fluid at a maximum stabilized rate and had a gas-
oil ratio of 279 cf/bbl. The company expects to secure
3.9 to 6.5 MMbbl of resources.
Europe
Discovery West of Shetland
Total E&P UK has made a gas and condensate discovery
on Block 206/4 in West of Shetland on the UK Conti-
nental Shelf near the Laggan and Tormore fields. The
Edradour exploration well was drilled to approximately
11,483 ft (3,500 m) in 984 ft (300 m) water depth.
Caterpillar spudded offshore Norway
Lundin Petroleum AB has begun drilling the 24/9-10S
exploration well in the Caterpillar field in license PL
The Leviathan field covers approximately 125 sq miles (325 sq
km). (Image courtesy of Noble Energy Inc.)
EPmag.com
READ MORE ONLINE
For additional
information on
these projects
and other global
developments:
98-102 Highlights-FEB_La!ot 1 1/22/11 10:08 PM Page 98
99
340BS in the Norwegian North Sea, four miles (6 km)
east of the companys earlier Marihne discovery. The
prospect is estimated to contain 11 MMbbl of gross
unrisked prospective oil resources and potentially will be
developed as a satellite to Marihne.
Wildcat well hits in Norwegian North Sea
RWE Dea Norge has made a discovery with the 35/9-6 S
wildcat well in the Titan prospect in PL 420, approxi-
mately 10 miles (16 km) west of the Gja field in the
Norwegian North Sea. The Bedford Dolphin semisub-
mersible drilled the well to a vertical depth of 12,021 ft
(3,664 m) in 1,214 ft (370 m) water depth.
Petroleum (mainly oil) was proven in a 1,427-ft (435-
m) column in the Brent Group and the Heather, Drake,
and Cook formations. Preliminary estimates of the size
of the discovery indicate between 12 and 63 MMboe
recoverable.
Survey begins offshore France
Melrose Resources has kicked off a 4,660-ft (7,500-km)
2-D seismic survey on the Rhone Maritime concession
offshore France. The survey will evaluate a number of
exploration plays that have been successful elsewhere in
the Mediterranean region, including a shallow Pliocene
channel sand system and structural Miocene plays
beneath the Messinian salt layer.
Central Asia
Dirok-2 finds Indian gas
Hindustan Oil Exploration Co.s Dirok-2 appraisal well
has intersected gas in a drillstem test in Assam, India.
The test, which covered approximately 20 ft (6 m) out
of a total 492 ft (150 m) net thickness, resulted in a flow
rate of approximately 6.5 MMcf/d of natural gas along
with approximately 140 b/d of condensate.
Bangladesh probe spudded
State-owned Bangladesh Petroleum Exploration and
Production (Bapex) has kicked off drilling at a field in
Bangladesh near Companyganj in the Noakhali district,
with 700 Bcf of gas in reserve, according to reports.
Bapex is expected to reach production levels of 15
MMcf/d of gas from the well, maintaining that rate for
20 years.
BG hits China gas
BG Group has made a gas discovery with exploration
well Lingshui 22-1-1 on Block 64/11 south of Hainan
Island offshore China. The well was the first drilled by
BG in China. It is in the deepwater Qiongdongnan
Basin in the South China Sea in 4,390 ft (1,338 m)
water depth.
Well spudded offshore India
Hardy Oil & Gas has spudded its second exploration
well, KG-D9-B3, on Block D9 in the Krishna-Godavari
Basin offshore India. The Discoverer India drilled the
probe in approximately 9,679 ft (2,950 m) water depth,
targeting Tertiary sands at approximately 12,566 ft
(3,830 m) depth.
Pacific Rim
Exploration offshore Tasmania
The T/44P Joint Venture has spudded the #1 Silvereye
exploration well in exploration permit T/44P in the Bass
Basin offshore Tasmania, approximately 40 miles (65 km)
west-southwest of the Yolla gas field. The Kan Tan IV semi-
submersible drilled the 36-in. hole to 459 ft (140 m).
Caterpillar field is 4 miles (6 km) east of the Marihne
discovery in the Norwegian North Sea. (Image courtesy of
Lundin Petroleum AB)
international
HIGHLIGHTS
OTC Brasil 2011
4-6 October Riocentro Rio de Janeiro, Brazil
Gent will ta
-PO
the first time 4-6 October,
?`O1
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in Rio de Janeiro at the Riocentro Exhibition and Conference Center.
OTC Brasil will provide a unique Brazilian flair that allows attendees an
exhibitors to experience memorable social and business networking
events and learn from peer-selected technical presentations, making
OTC Brasil a compel lin event to participate in.
Email: info@otcbr
Phone #: 1 (281) 49
Fax #: 1 (281) 491-5902
Website: www.OTCBrasil.or
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international
HIGHLIGHTS
Planned total depth of the deviated well is 7,874 ft (2,400
m). The primary objectives are the Paleocene and Creta-
ceous sandstones within the Eastern View Coal Measures.
Coastal finds new field offshore Thailand
Coastal Energy Co. has made a new field discovery in the
Songkhla area in the Gulf of Thailand. The A-11 well
was drilled to a total depth of 7,974 ft (2,430 m) true
vertical depth, resulting in the discovery of the Songkhla
North field. The well encountered 44 ft (13 m) of net
pay in the Lower Oligocene reservoir with 18% porosity
and 69 ft (21 m) of net pay in the Eocene reservoir with
21% average porosity.
Tap spuds Bass Basin well
Tap Oil Ltd. has spudded the #1 Craigow offshore explo-
ration well in permit T/47P in the Bass Basin between
Victoria and Tasmania. The well is being drilled in 246 ft
(75 m) water depth. The primary target near the Top
Aroo formation will be intersected at approximately
4,856 ft (1,480 m) below sea level. The planned depth of
the well is approximately 5,991 ft (1,826 m).
South America
More light oil in Tupi
BG Groups 3-BRSA-865A-RJS (3-RJS-677A) well, known
as Tupi W, has confirmed the presence of light oil
(approximately 28 API) on the BM-S-11 concession in
the Santos Basin offshore Brazil. The well was drilled in
7,018 ft (2,139 m) water depth, approximately 171 miles
(275 km) off the coast of Rio de Janeiro State, and seven
miles (11 km) northwest of the original Tupi discovery
well. Tupi W encountered a 295-ft (90-m) reservoir sec-
tion on the western flank of Tupi.
Oil find in Espirito Santo Basin
Statoil and Petrobras have struck oil on the Indra prospect
in the Espirito Santo Basin approximately 87 miles (140
km) offshore Brazil. Noble Drillings Paul Wolff semisub-
mersible drilled the exploration well to a depth of 6,988 ft
(2,130 m) with good oil and reservoir quality. The reser-
voir thickness is approximately 230 ft (70 m).
North America
Carrizo tests Colorado probe
Carrizo Oil & Gas has performed a production test at
controlled rates on its first Niobrara well, the State 16-
11-9-60, in Weld and Morgan counties in Colorado. The
well initially flowed at more than 690 b/d of oil and cur-
rently is producing approximately 530 b/d.
Shells Alaska setback
Shell has delayed plans to drill offshore Alaska in the Arc-
tic after environmentalists successfully challenged a deci-
sion to grant the company air-quality permits. Shell has
invested US $3.5 billion in an exploration campaign in
Alaskas Beaufort and Chukchi seas, but has yet to drill a
well. The operator believes the area contains up to 25
Bbbl of oil reserves, mostly in the Chukchi Sea.
Gulf of Mexico
GoM gas shows
Entek Energy Ltd.s GA A133 well in the Gulf of Mexico
(GoM) has intersected approximately 200 ft (61 m) of
net gas pay. The well is expected to have an initial pro-
duction rate of between 10 and 20 MMcf/d.
Big Foot project sanctioned
Chevron has sanctioned the development of its US $4
billion Big Foot project, approximately 224 miles (360
km) south of New Orleans, La., in 5,200 ft (1,600 m)
water depth. The project will be the companys sixth
operated facility in the deepwater Gulf of Mexico. Big
Foot will be developed with a dry-tree extended tension-
leg platform with an onboard drilling rig with produc-
tion capacity of 75,000 b/d of oil and 25 MMcf/d of
natural gas.
Big Foot is approximately 224 miles (360 km) south of New
Orleans, La., in 5,200 ft (1,600 m) water depth. (Image courtesy
of Chevron)
.
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PHOENI X FLUMPESYSTHAS
TI CI NOIOOY S I P . n. o., i?.
2
ADVERTISER INDEX
on the
MOVE
103
Minoo Patel has joined the
board of directors for BMT
Group Ltd. as a non-executive
director. Patel currently works
as a professor of mechanical engineering
and director of development in the
School of Engineering at Cranfield
University.
Hyperdynamics Corp. has appointed
William O. Bill Strange to its board of
directors. Strange is a retired audit part-
ner with Deloitte & Touche LLP.
The Artificial Lift Co. Ltd. has appointed
David Malone, CTO for Shoaibi Group, as
a board member.
Two new members have joined Gas Tech-
nology Institutes board: Marc Florette,
senior vice president of Research and
Innovation for GDF Suez, and Ronald
W. Jibson, president and CEO of
Questar Corp.
Nigel Avern has been appointed CEO of
Peak Well Services.
Tom Chambers has been promoted to
CFO and executive vice president of
Apache Corp. from his previous role as
vice president of Planning and IR.
Per Arild Reksnes, currently head of
Petroleum Geo-Services Business Area
New Ventures, will take over the position
as executive vice president, Marine
Contract.
Andrew Way has been named vice president
of services for GE Oil & Gas.
Shell has appointed
three new chief scien-
tists: Dirk Smit (left),
vice president of
Exploration Technologies, will
be chief scientist for Geophysics;
John Karanikas (top right), chief
subsurface engineer in Uncon-
ventional Oil, will be chief scientist for
Reservoir Engineering; and Vianney
Koelman (bottom right), team leader of
In-Well Technology, will be chief scientist
for Petrophysics.
Aker Solutions . . . . . . . . . . . . . . . . . . . .37
Baker Hughes . . . . . . . . . . . . . . . . . . . . .26
Cameron . . . . . . . . . . . . . . . . . . . . . . . .15
China National Logging Co. . . . . . . . . .45
Dragon Products, Ltd. . . . . . . . .57, 62, 73
E&P . . .IBC, 49, 82, 83, 86, 94, 96, 100, 102
Emerson Process Management . . . . . . .7
Escondido Resources . . . . . . . . . . . . . .72
Expro . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Frontier Energy Group, Inc. . . . . . . . . .55
GE Oil & Gas . . . . . . . . . . . . . . . . . . . .IFC
Halliburton . . . . . . . . . . . . . . . . . . . . . . . .9
Halliburton Landmark
Software & Services . . . . . . . . . . . . . . .4
iLandman . . . . . . . . . . . . . . . . . . . . . . . .93
International Petroleum
Association of America . . . . . . . . . . . .91
Lufkin Industries Inc. . . . . . . . . . . . . . .65
M-I Swaco . . . . . . . . . . . . . . . . . . . . . .2, 35
Momentive . . . . . . . . . . . . . . . . . . . . . . .20
National Oilwell Varco . . . . . . . . . . . . . .13
Newpark Drilling Fluids . . . . . . . . . . . .28
P2 Energy Solutions . . . . . . . . . . . . . . . .66
Petris . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
PGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Roxar Flow Measurement . . . . . . . . . . .61
Roxar Software Solutions . . . . . . . . . . . .16
Schlumberger . . . . . . . . . . . . . . . . .OBC, 3
Schneider Electric . . . . . . . . . . . . . . . . .21
Society of Petroleum Engineers . . . . .64
V&M . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
Varel International . . . . . . . . . . . . . . . .33
Weatherford International Ltd. . . . .18, 19
WesternGeco . . . . . . . . . . . . . . . . . . . .43
Wood Group Pressure Control . . . . . .68
Wood Group ESP . . . . . . . . . . . . . . . . . .58
Group Publisher
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DAVID HOGGARTH
Tel: 44 (0) 7930 380782
Fax: 44 (0) 1276 482806
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MARKETING | SALES | CIRCULATION
103 Onthemove_Layout 1 1/24/11 11:02 AM Page 103
I
r1l,
104
P
roduct and service reliability has always been an
important criterion for oil and gas operations, but,
historically it has been difficult to measure consistent
levels of reliability.
Transferring know-how
Other business sectors have a greater maturity in the use of
reliability and quality principles. Aerospace and defense,
for example, have a mature reliability culture after 60 years
of sustained focus on the topic. Flight safety led to man-
dates on use of processes and procedures in the Military
Handbook and Military Standards to execute development
programs that meet high reliability/safety requirements.
Today, learning from these industries is yielding more cost-
effective and efficient programs and processes for indus-
trial and consumer products.
In classic terms, Reliability (R), is the probability of fail-
ure-free performance over an items useful life, for a spec-
ified timeframe or mission time (t), under specified
environmental and duty-cycle conditions where probabil-
ity of failure-free performance is greater than 0.9995. For
most commercial aviation applications, reliability require-
ments are very stringent: for a mission time of t = 10
hours, R(10) can be greater than 0.999999, which necessi-
tates use of tools capable of supporting probabilistic engi-
neering and data analysis.
Challenges unique to the oil industry necessitate a disci-
plined approach to reliability:
Stochastic time-varying mission profiles: The drilling,
completions, and production environments can
change greatly across different jobs in different fields.
Stochastic mission profiles and a true Design for Six
Sigma (DFSS) Product Development Management
(PDM) are key to enabling future designs to meet pre-
dictable durability requirements.
The rig environment: The oilfield service sector is
highly dependent on the skills of field engineers to
deliver service quality. Rapid advances in technology,
cyclic market-driven attrition, system complexity, and
varied applications increase the probability of human
transactional failures.
Downhole conditions in deeper wells with higher
temperatures and pressures push the physics of
failure limits.
A solid reliability program has relevant reliability
requirements and takes a systems approach. Designing for
reliability (DFR) requires a disciplined approach toward
concurrent engineering. There are many reliability tools
that span the realm of individual part failure models to
modeling system reliability. Probabilistic inputs to tradi-
tional engineering tools like finite element analysis and
computational fluid dynamics often increase computa-
tional times by an order of magnitude.
Adoption of tools and techniques like DFSS and process
improvements such as Define, Measure, Analyze, Imple-
ment, and Control are gaining traction. DFSS and 6Sigma
will continue to evolve as important tools for developing
highly reliable products. Investment is needed to develop
proper understanding of when and how to use these
sophisticated tools to achieve a reliable design or service.
The ultimate goal of DFR is to minimize the number,
likelihood, and impact of failure modes.
The product development life cycle can be divided into
four phases: 1) specification, 2) design, 3) test, and 4)
implementation. Each phase requires collaboration across
multiple disciplines. Several years ago, Baker Hughes Inc.
launched a product reliability program for new products
and has made significant upgrades to its quality program:
Embedding DFR tasks in an updated rigorous PDM
stage-gate process already in use for 10 years;
Formal supplier qualification and risk management
program;
One operating and quality management system across
all product lines;
6Sigma and Lean training and certification; and
Reliability centered maintenance program.
For strengthening service quality, key initiatives in the
pipelines include: embedded diagnostics, fault tolerant
designs, remote monitoring and optimization, and train-
ing and certification requirements for personnel involved
in the DFR process.
Increasing project operating costs are resulting in cus-
tomers demanding higher returns on their assets. More
formal requirements specifications from customers and
more frequent and rigorous customer audits will continue
to distinguish quality service providers.
Taking the measure of reliability
Programs and processes from other industries are helping to improve
product and service reliability in oil and gas operations.
Greg Butler, Randy Phillips, and Tauseef Salma,
Baker Hughes Inc.
last
WORD
104 LastWord_Layout 1 1/22/11 10:14 PM Page 104
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Revista E&P - Febrero 2011

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