<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>
 

Drones in Oil&Gas industry

Drones in Oil&Gas industry

Recently drone business has gotten to Oil&Gas industry in order to conduct inspections of oil rigs. One knows that those inspections are dangerous and expensive work involving workers hanging from the bottom of an oil platform to visually log damages. Drones usage naturally has its positive aspects and could easily reduce costs of expensive traditional inspections.

Nowadays, when crude price stays below 30$/bbl it is obvious that not economics but common sense forces big companies to cut costs and it is a good impetus to implement effective solutions without compromising safety. There is a significant demand for such services and this trend is likely to thrieve in the near future.

London-based Sky Futures, which opened an office in Houston in 2015, said that last week the company flew its drones on inspections of an oil platform, a helicopter deck and four cranes on a drillship. Sky Futures did not name which oil company contracted them to perform the inspection.

Sky Futures grew its business in the North Sea for years before getting approval by the Federal Aviation Administration in March 2015 to operate in the United States. According to the date of the FAA’s exemption, Sky Futures was among the first companies to get approval to start flying drones for commercial activities in the U.S.

There are now more than 3,000 businesses or individuals in the U.S. with approval to fly drones for commercial reasons, according to the FAA’s database on exemptions. At least 994 of those exemptions went to applicants performing various types of inspections: electric transmission lines, solar power installations, chemical plants, commercial and residential real estate and farms, as well as oil and gas equipment and a host of other facilities.

A few major energy companies also received exemptions, among them Chevron, Marathon Petroleum, NextEra Energy and Duke Energy. Most have listed safety inspections of oil and gas facilities and power infrastructure as reasons for new drone launches.

Watch video below taken by a Sky Futures drone of the underside of an oil platform in the North Sea.

https://youtu.be/yqw3TI_I9pE

Source:
http://fuelfix.com/blog/2016/01/21/drone-company-claims-first-legal-gulf-of-mexico-inspection-flights/#32799101=0

Lifted sanctions against Iran

17 January, 2016 News No comments
Lifted sanctions against Iran

Iran has fulfilled all obligations under the nuclear agreement, which in July last year concluded with world powers – said today the head of the International Atomic Energy Agency (IAEA) Yukiya Amano. As a result, the US and the EU decided to lift the economic sanctions imposed on Iran.

Read more

Could the price of oil rise in 2016?

Could the price of oil rise in 2016?

This week, Morgan Stanley (Global Financial Services Firm) has published a report which shows that the price of a barrel of oil could fall to $ 20. Analysts estimate that the price will fall by around 10-25 percent. Conversely the political tension between Saudi Arabia and Iran, which are important exporters of oil, is still present.

According to the data for 2014 Saudi Arabia is one of the biggest, just behind the United States, oil producer in the world. Daily extraction of raw materials reaches 11.6 million barrels there. In comparison to Iran on account of production is the seventh in the world. Every day 3.4 milion barrels are extracted.

In January 2016, Saudi Arabia and Iran suspended diplomatic realations. The conflict between this two countries can provide to reduce extraction of oil. Increasing political conflict can destabilize the world’s prices of oil.

It’s worth mentioning that, in addition to high supply of raw materials, even in case of any politacal conflict between Saudi Arabia and Iran the supply of raw materials will be provided safely. The situation stabilizes cheap oil from the United States. Additionaly experts evaluate that the particular problem we are likely to reach in 2016 is the lack of place to such big amounts of oil. Some of analysist consider that, prices can be expected to drop to a very low prices only $10 per oil barrel.

Marked increase of prices is not likely to occure but present situation in the Middle East is very unstable and it can completely change today’s oil market.

Sources: www.ourfiniteworld.com, www.forbes.pl, www.tvn24bis.pl

IMG: www.biznes.interia.pl

Half of US shale drillers may go bankrupt

Half of US shale drillers may go bankrupt

Before the crude market reaches equilibrium Half of U.S. shale oil producers could go bankrupt. The senior oil and gas analyst at Oppenheimer & Co., Fadel Gheit, said this Monday that it could be more than two years before crude prices ultimately will stabilize, and its price will oscillate near $60.

Many secondary U.S. drillers must drill into and break up shale rock to get the oil and gas released through a process called hydraulic fracturing. It is a well-stimulation technique in which rock is fractured by a pressurized liquid. The process involves the high-pressure injection of ‘fracking fluid’  into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely. It causes that fracking is significantly more expensive than extracting oil from conventional wells. This drillers cannot wait for prices to stabilize so long, also they need at least $70 oil to survive. At current oil prices, companies both large and small – including ExxonMobil and Chevron — will have to think twice about their dividend.

On Tuesday, U.S. crude fell to $29.93, which was last seen in December 2003. Such a drop would be brief because supply and demand are beginning to come into balance. But a number of producers would enter bankruptcy even with crude near $30 per barrel. U.S. drillers are now spending more than they are making from operations, a situation that Gheit said is unsustainable and will eventually force prices higher.

Summing up, the oil industry needs a minimum amount of investment to keep oil supply in line with demand. The current investment right now would not be sufficient enough to bring additional production to meet global demand. It’s not a good information that crude price fell, but we have to remember that this industry is very unstable, so let’s hope it get better within upcoming days.

sources: www.cnbc.comen.wikipedia.org

Annual Student Energy Conference 2016

Annual Student Energy Conference 2016

The Conference brings together some of the best students and young professionals from all over the world to discuss the latest developments in the energy world, with a strong emphasis on the oil & gas industry.

 

 

 

 

The Conference lasts FOUR EXCITING DAYS and is packed with educational and social activities, including:

– compelling keynote addresses from industry experts;

– educational sessions with student and expert presenters;

  • panel discussions;
  • workshops;
  • conference coffee-breaks featuring traditional local desserts;
  • topical lunches and dinners with delicious local food;
  • field trip;
  • a student party to top it all off!

When: 9th – 12th March 2016

Where: University of Zagreb, Zagreb, Croatia

Website: http://spes.rgn.hr/asec/

Facebook: https://www.facebook.com/events/118051465228015/

 asec

 

Participant registration is now open — deadline is February 15th.

  • The Call for Abstracts is now open — abstract submission deadline is February 1st.
  • All in all — this event is guaranteed to be highly educational, fun and unforgettable! Places are limited so secure your place now!
  • Please share this event with your colleagues and friends who might be interested. Thank you and we look forward to seeing you at the Conference!

Great expectations – COP21.

Great expectations – COP21.

It has been over a month since Paris Climate Conference had place. That was the biggest meeting of its kind since the andoption of Kyoto Protocol in 1997 and it connected representatives of 196 countries from all over the world. The overarching goal of the Paris Agreement (global agreement that was negotiated) is to reduce greenhouse gas emission to limit the global temperature increase. Thinking about climate change and global warming we often think that it is connected with supporting the suistainable energy sources, blaming countries that base their energy production on conventionals and … this is partialy true, but how does it affect oil&gas sector?

In fact ten of the world’s big oil companies, mainly from Europe, jointly acknowledged that their industry must help address global climate change and said that they agreed with the United Nations’ goals of limiting global warming. This initiative was caused by the need of convincing skeptical world that energy companies, which base on fossil fuels, are serious about their impact on climate change problem. Even despite the fact that none of the American biggest oil companies took part in this statement Mr. Dudley, who is chief executive of BP, told reporters in Paris: “I think we can make the difference, almost every company here has large investments in the United States.” Changing the world’s energy mix is not easy. It will take time. Even with an exponential increase in investment in alternative energy, forecasts predict that fossil fuels will still make up a large share of the energy mix in 2040. Less than the 80% share of today, but almost certainly well over 50%.

Supplying growing need of world’s population in energy and lowering greenhouse gas emissions requires technology development and transparent reporting. Oil and Gas Climate Initiative listed actions and instruments that they plan to introduce. Those included cleaning up their own operations, reducing methane emissions that escape from oil and gas installations, internal award, compensation schemes and exchange of information. Many experts say that solutions like putting a price on carbon or the trading of carbon-emission permits will only inevitably rise the prices of fuels, but still are most efficient. The carbon tax paid by Statoil in Norway has for decades been the highest in the world. That has helped them to be one of the most carbon-efficient producers of oil and gas in the world. It works.

What is more, not all fossil fuels produce the same amount of carbon dioxide when consumed. Shell and Total have already invested in natural gas bussiness in recent years, which emits much less carbon than oil and two times less than coal. So, replacing coal with gas in the power sector would reduce emissions in the EU by around 450m tonnes of CO2 a year.

Taking a more global look on the global warming unfortunately only EU countries are strongly commited to reduce emissions so goods produced by local companies become more expensive, customers choose those produced in developing countries, for example China, which contribution to carbon dioxide in the atmosphere is 30% and that creates a vicious cirle. Provided that China will stop the rise of greengases emission till 2035 other fast developing countries like India, south Asian, South American and African countries (together hold 20-30% of world’s CO2 emission) will not accept any of the restrictions unless they will get refund. If it comes to United States, contribution is 15%, The Byrd–Hagel Resolution is in force, what means that they cannot enter into any international treaty that could be harmful for their economy, but happily shale revolution which takes place there nowadays will enable lowering emission. With almost 0% of emission these countries are affected the most, but also their voice is the weakest- Small Island States such as Bahamas and Maldives. While others count financial profits and losses for these countries further rise of water in oceans may mean the end of their existance.

The agreement in Paris matters enormously. Not because it brings solutions and firm treaty that will be strictly kept by all the participants. But what it does, is that it has a vital value of creating a place for discussion and shows that diversity is important and even choices that every member of society make everyday matter. Pessimism will not bring about radical change. And pessimism will not orient us towards the solutions for climate change.

Sources:

http://www.theguardian.com/

http://www.nytimes.com/

Saudi economy against ongoing “oil war”

Saudi economy against ongoing “oil war”

Current geopolitics has drastically changed the situation in Saudi economy. This middle-east country is more and more burning their foreign reserves to ensure economic stability and monetary flexibility.

Last two years indicated that hydrocarbon’s price is not depending on actual supply and demand but essentially on political relations. Tense situation in the Eastern Europe (international sanctions during the Ukrainian crisis) and Syrian Civil War have enforced cuttings in oil branches especially in OPEC countries.

Saudi Arabia, as an oil-addicted state, was forcefully touched by declining prices. After many years of high spendings, their budget deficit has reached $98 billion (15 % of Gross Domestic Product) and if oil value determines near $30 a barrel, deficit will probably rise to $180 billion.

Saudi internal market and monetary policy were modified due to a new, tougher situation. “If anything happens to the riyal exchange peg, the consequences will be dramatic. There will be a serious loss of confidence,” said Khalid Alsweilem, the former head of asset management at the Saudi central bank.

In spite of ministerial claims, fuel’s prices have raised by up to 80% (December 30, 2015) including a 50% revision of the most generally sold petrol to 0.90 riyals per litre.

Near future is going to be nasty for the Kingdom of Saudi Arabia and entire OPEC unless they agree to cut crude production and eliminate the global oil surplus. The U.S plans to sell millions of barrels of crude oil from Strategic Reserve can make crisis deeper and establish a new playmaker in the international fuel’s arena.

Sources:

http://www.telegraph.co.uk/finance/economics/12071761/Saudi-riyal-in-danger-as-oil-war-escalates.html

http://www.bangkokpost.com/news/world/810468/in-global-oil-price-war-saudis-blink-first