<a href="http://youngpetro.org/2013/03/06/how-is-it-possible-to-produce-oil-from-sand/"><b>How is it possible to produce oil from sand?</b></a> <a href="http://youngpetro.org/2011/10/09/people-engineers-and-spe-members/"><b>People, Engineers and SPE Members</b></a> <a href="http://youngpetro.org/2012/12/19/if-i-were-a-prime-minister/"><b>If I Were a Prime Minister…</b></a> <a href="http://youngpetro.org/2012/12/26/polish-shales-delayed/"><b>Polish shales delayed?</b></a> <a href="http://youngpetro.org/2013/01/11/russia-continues-the-policy-of-states-companies-monopoly/"><b>Russia continues the policy of state companies’ monopoly</b></a>
 

Eni bets and Eni wins

Eni bets and Eni wins

Latest discoveries and purchases made Eni the biggest shareholder of oil and natural gas fields in East Africa increasing their resources from 30 to 68 trillion m³. The Italian giant is about to operate most of Mozambique offshore findings. Remote and unstable areas with almost none infrastructural bases are risky for development. But without risk there is no reward. That troublesome region is not the first and last in which Eni have taken part.

Eni thrives in North Africa. Thanks to executives politics they survived Libyan civil war and came along smoothly. Italians plan to explore Barents Sea and Black Sea together with Rosneft. And what might be extremely prosperous – Chinese mainland shale gas formations, for which Eni signed a deal with China National Petroleum Corp.

As Mr Scaroni said “We are preparing the balance sheet to be ready to develop all the discoveries we have made” there is nothing to do but to wish them good luck and wave of prospects.

For more specific information switch to:
New York Times
Seeking Alpha

photo: REUTERS, offshoreenergytoday.com

BP has evacuated foreign staff from Algeria

BP has evacuated foreign staff from Algeria

Due to recent events in Algeria, BP has decided to evacuate foreign staff from the country.
“Supporting our colleagues and their families at a time of extreme concern is essential, and we are seeking to support them in every way we can” said BP Chief Executive Bob Dudley in a press statement.

Last Wednesday in the morning Islamist militants attacked the facility, taking dozens of hostages.
Statoil and BP, who operate as a joint venture at In Amenas (1150 kilometers from Algiers- capital of Algeria), confirmed that several of their employees were working at the facility. Spokesman of militants claimed that some 35 hostages and 15 militants had been killed in the attack on the In Amenas facility by Algerian armed forces. Quoting International Energy Agency  “The kidnapping of the foreign workers at In Amenas had cast “a dark cloud” over the outlook for the country’s energy sector”.

BP, Foreign Workers Evacuated from Algeria   | RIGZONE

Is work in volatile countries like Algeria are getting more and more dangerous? What about you? Are you willing to work in such places?

 

Photo by wtop.com

Shale gas utterly changed the American gas market – how about Polish?

Shale gas utterly changed the American gas market – how about Polish?

Within four years, the heating costs in the USA declined by half, thanks to the shale gas extraction. This situation may happen to Poland as well, but on a minor scale, due to disparities in the  extraction costs.

Lower natural gas prices have attracted many investors to the USA, mainly in the chemistry business bringing multibillion investments in  chemical factories, for  which the natural gas is the main source of energy. Experts claim that the shale gas revolution in Poland may be less successful, because of the high drilling costs. Execution of a borehole in the USA costs about USD 8-9 million. Polish company PGNiG claims that these costs, including the process of fracturing, oscillate between USD  10-15 million. The main reasons behind this disparity include: a more intricate geological structure and more stringent environmental restrictions in Poland. In Europe there is a shortage of drilling devices, countries are more densely populated and shale gas deposits lay much deeper than in the USA.

In the USA and Canada, 400 thousand exploratory and extractive wells have been executed so far.  Each costed between USD 3,5 and 9 million. In Poland, to date, only 33 exploratory boreholes have been started, with the total cost under  USD 1 billion. The Ministry of the Environment claims that by the year 2021, further 309 drilling wells will have been executed(128 for sure and additional 181 optionally, depending on the investors).

So, do you think Poland can achieve such a successful results in future? What will it depend on? Share your opinion with us.

Russia continues the policy of state companies’ monopoly

Russia continues the policy of state companies’ monopoly

It seems that the Russian Arctic Shelf’s oil will be all under control of two state companies: Gazprom and Rosneft.  The Federal Mineral Agency approved the companies’ applications for over a dozen new licences in the area.

These decisions make the number of prospective areas in the shelf left is rapidly shrinking. It leaves limited opportunities for private companies to get in the game.

Firstly, the Ministry of Natural Resources proposed to open the shelf  for private companies. But today’s legislation allows only state-controlled companies with at least five years of offshore experiences to operate on the Arctic shelf.

Lukoil and Zarubezhneft, companies that are interested in operating in the Arctic waters, are fighting hard to break the monopoly of two state-controlled giants. It is a very difficult struggle, because heads of Gazprom and Rosneft concentrate their efforts not to let other companies get offshore licences on the shelf.

 

Russian Arctic shelf monopoly prevailing  |  Barents Observer

Lukoil pushes for access to shelf  |  Barents Observer

 

What do you think about Russia’s managing on the Arctic shelf? Should it let private companies operate in the area?

 

Photo by Gazprom.ru