<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>
 

Drilling Into A Volcano in Iceland

Drilling Into A Volcano in Iceland

Iceland is known for its ability to produce renewable energy which covers 100% of energy demand. The largest share is geothermal and hydropower energy whereas fossil fuels are still in use but this share is constantly declining. What stands behind such good statistics, it is definitely Iceland’s unique geology which makes it fairly cheap to produce energy from a variety of natural sources. Recently, a massive drill project, named “Thor” has been in the spotlight.

Actually, drilling into volcano is an incentive that brings one’s attention. A depth has reached 4,659 kilometers and is expected to generate up to 10 times more energy than conventional methods. The drilling had begun in August, 2016 and was completed on January 25 of this year.

At the very bottom of the wellbore the temperature reaches 427 Celsius degrees and the pressure outweighs 200 atmospheres. In such conditions occurs bizarre fluid that behaves both as gas and liquid but is neither of them. This well can provide a tremendous supply of energy. It has been estimated that the capital of Iceland, Reykjavik would require between 30 and 35 usual conventional wells to provide its inhabitants hot water whereas only three to five wells like Thor could do the same.

Projects like Thor put Iceland in a role model position of a renewable energy superior producer ahead of any other country in the world. It appeals to be stunningly interesting how this small country has been pioneering in energy field.

Sources:

iflscience.com

wikipedia.org

BG Group acqusition by Shell

BG Group acqusition by Shell

In times of a downturn, oil and gas market was unstable and a number of companies suffered. Nowadays, oil price is double it was a year ago. Crucial decisions had to be made and some were brutal, especially in upstream where companies such as Schlumberger, Halliburton and Baker Hughes cut jobs and made their employees redundant. Obviously, at that time downstream did not thrive but large fuel margins helped companies survive. Surprisingly, in spite of unpleasant situation one of the supermajors – Royal Dutch Shell decided to bid for BG acquisition.

In April 2016, Royal Dutch Shell announced that BG acquisition had been agreed for 70$ billion. Nearly a year past, in February 2017, the takeover was completed with a final price $52 billion.

When it comes to focus areas, Shell is known for its highly advanced fuels and lubricants produced and sold with substantial margins in downstream. Talking about BG, its operations are mainly exploration and extraction of natural gas and oil as well as the production of liquefied natural gas (LNG). Clearly, such a merger creates an interesting business and what is more, new opportunities in oil and gas industry.

Acquisition of BG seems to be a new strategy and significant chance for development in upstream. The merger made Royal Dutch Shell the world’s largest producer of LNG. The market reacted positively on merger news. Both Shell and BG Group shares increased rapidly. Even though, Shell has deepend its debt the advantages of the acquisition were considered worth acquiring. Surely, it is a big deal and hopefully this happening will enhance competition among other supermajors.

Sources:

fuelfix.com
wikipedia.org

Update on current situation in Oil&Gas Industry and Careers

Update on current situation in Oil&Gas Industry and Careers

Many workers were laid-off from powerful companies such as Halliburton or Schlumberger because of low crude price. Halliburton reported $3.2 billion loss in the second quarter due to breakup fee it paid rival, Baker Hughes. In the second quarter another 5,000 jobs were cut, bringing the total workforce to just more than 50,000 people. Over 35,000 jobs were eliminated in two years which is roughly 40 percent of its total jobs. Chairman and CEO Dave Lesar said that no new job cuts were announced and they are expecting to see a modest uptick in rig count. Schlumberger reported a huge loss and announced the elimination of over 8,000 jobs in the first quarter and about 10,000 jobs in fourth quarter of 2015. More job cuts are possible in July.

Such downturns forced especially mechanics and roustabouts to find new jobs. Fortunately, workers’ flair helped them to find jobs in construction, retail, engineering consulting or chemicals. Some got jobs in agriculture, technology or financial services. Surveys show that many laid-off would not take a job in the oil patch again. Nonetheless, in case oil price goes up many new potential employees will be engaged in massive projects.

 However, those seeking for an opportunity in the North Sea might be a bit problematic as an effect of the uncertain investment environment created by Brexit. One cannot marvel on it, referendum showed that majority is not pleased with England belonging to European Union. It is obvious that a fair amount of money England donated for other countries does not pay off and tosh deputies are concerned about is irrelevant. England does not need an approval from European Parliament to simply decide about Britain’s economy and things such as letting cheap workforce come to their country.

To sum up, current situation in Oil&Gas Industry is not good. Oil market requires a bit of time to retrieve its best. $45 crude price level is already stable and some experts claim that it may rise up to $60/bbl in coming months.

Sources:

Fuelfix.com

Houstonenergyinsider.com

PGNIG opens LNG trading office

PGNIG opens LNG trading office

Energy independence is a key factor for every country to thrive. Those countries which are not energy independent face many issues. Naturally, this kind of situation is not beneficial for many. It stops economy growth and makes country unstable. Sadly, even pretty well developed countries and nations may face this fact. Poland is one of them and as an example one could describe such unconvenient matter.

Poland has been contracting gas deliveries from Russia for many, many years. Price Poles pay for gas are far away from desirable. Concerns about gas deliveries regularity and negotiating good deals for gas deliveries with Russians have happened repeatedley. Necessarily, this pressure from the East encountered polish reluctance. Both LNG Terminal in Swinoujscie and Baltic Pipe form a vital defence and reaction to Nord Stream 2.

Although gas price for LNG from Qatar to Poland are not particularly cheap it is still good part of energy diversification. To become a real player on the market Poland needs to find the best solutions and contract gas deliveries. Another step in this situation is opening LNG trading office. As PGNIG (Polish Oil and Gas Company) has planned a new trading office is about to be open in London (precisely in January 2017).

“The President of PGNiG SA, Piotr Wozniak, said: “We are upholding our decision to open an LNG trading office in London. Currently, we have reserved 65% of the capacity of the LNG terminal in Swinoujscie [Poland]. Thus, PGNiG SA has become a player of the global LNG market. We want to fully leverage the resulting opportunities.”

The London office will focus its efforts on short-term and medium-term LNG trading. To start with, it will consist of both a number of specialists from the PGNiG Group, as well as external experts. Any strategic decisions regarding the management of long-term contracts and the LNG portfolio will be made by PGNiG SA. “

Hopefully, LNG trading office will become an important place with experts negotiating good deals for Poland and will ease connections with many potential suppliers.

Source:

lngindustry.com

Shortly about Baltic Pipe

Shortly about Baltic Pipe

Obviously, Baltic Pipe is a clear response to Nord Stream 2, which directly connects Russian Federation with Western Europe. Experts claim that Nord Stream 2 through Germany could even get to Austria, Czech Republic and Italy. This menace has not been taken well by Central Europe, including Poland, Slovakia and Hungary.

Gazprom informed that pipes delivery tender is already settled. Fortunately, there is no construction permit and European Comission is not currently willing to accept these plans. Thus, it is a chance for Baltic Pipe project to brighten this situation up.

Simply, the idea is to build a pipeline between Swinoujscie Port (Poland) and Kopenhagen and then match it with another pipeline that goes to Norway. Polish Oil and Gas Company (PGNIG) own concession to extract norwegian gas there. That could be another factor for polish diversification of resources.

The tricky part is that half of a costs would be covered by European Union as a part of Connecting Europe Facility programme. Gaz System (Poland) and Energinet (Denmark) are supposed to be operators responsible for expanding the network transmission. Feasibility study will be estimated by the end of the year.

Sources:

http://natemat.pl/

 

Disrupting ISIS oil network after attacks

Disrupting ISIS oil network after attacks

After the Paris attacks last November, today dozens of innocent people have lost their lives in Brussels; more than 200 are wounded. The city is in pain and mourning and the mass media keep on informing about disrupting ISIS oil network.

The U.S. military is urged to find ways to disrupt the oil production that helps fund the insurgent group ISIS. “In an age where energy is a precious commodity, their energy production not only funds crimes against humanity, but it also forms the means by which would-be ‘states’ like ISIS survive,” Olson (U.S. Rep.) said in a statement. “We must take every measure to cut off ISIS funding at the source.”

In December, the Los Angeles Times reported ISIS now controls approximately two-thirds of oil production in Syria, which analysts estimated at around 35,000 barrels a day. At current market prices, ISIS’s share of that oil is worth more than $900,000 a day.

Well, it’s all great. However, wouldn’t be much more essential to close european borders to refugees or simply and more effectively change immigration policy in order to avoid such situations? Unfortunately, we’re overwhelmed with political correctness and european politicians are willing to accept the immigrants culturally enriching society.

Sources:

www.theguardian.com

www.fuelflix.com

Crisis goes on

Crisis goes on

Crisis in oil and gas industry goes on and thus energy firms keep on downsizing production instead of investing in drilling new wells. Interestingly, it is 10th week in a row when U.S. producers cut oil rigs. Drillers from Baker Hughes removed 13 rigs in the week ended Feb. 26, bringing the total rig count down to 400. That compares with 986 oil rigs operating in same week a year ago.

Eagle Ford might be another example of negative low crude price influence on making profit. So far this year, drillers have sidelined 29 rigs. Oil production from U.S. shale fields, including the Eagle Ford, is expected to keep dropping this year, which should take some pressure off of storage.

Sometimes downsizing production is not enough and cutting jobs is essential to survive on the market. Halliburton is about to lay off another 5000 workers which equals about 8 percent of its workforce.

Well, it is just business… Owners of oil companies are forced to make hard decisions in order to avoid a collapse. But surely this will not last forever when production is unprofitable for many.

Sources:

http://www.rigzone.com/news/oil_gas/a/143259/Baker_Hughes_US_Oil_Drillers_Cut_Rigs_For_10th_Week_In_A_Row

http://fuelfix.com/blog/2016/02/26/eagle-ford-rig-count-down-70-percent-in-the-last-year/

http://fuelfix.com/blog/2016/02/25/halliburton-cutting-5000-more-jobs-worldwide/#36089101=12

Facing the truth

Facing the truth

It has been almost a year and a half since oil price dropped below 100$/bbl level. This trend continues badly and consequently gas price is low. Huge oil companies lay off thousands of employees and recent graduates cannot believe such a situation. In the internet more and more questions were asked and so did answers come into sight. Some of them present pragmatic point of view and some are completly useless and not really accordant with potential engineer ethics.

The truth is that as graduates we look for the quickest way to make money. Just think about it, we pay a lot of money for our studies, work hard, invest our time and effort in it and sacriface our youth for better life. Many of those who decided to study Petroleum Engineering or similiar major in the USA, Canada, Australia or United Kingdom probably will end up with a loan so there is no possibilty of rejecting the path we have chosen. Even if currently there is no way to find a job in oil and gas industry we should definately find something else that would be a good background for our future job. In the meantime it is essential to provide ourselves with a good education on our own. What do I mean by that? With BSc degree you will be able to face basic challenges in your first job so do not consider doing Masters, PhDs or worst of all Postgraduate studies. It will be worthless unless you have got some work experience. If price do not rise you will end up with huge loan and just a theoretical knowledge. Forget about volunteering as well. During studies you had time to do some summer internships or apprenticeships. I bet big companies even offered competitive salaries in order to attract and train young talents. In worse case you could work for free but still in oil and gas industry to gain essential knowledge and experience but now volunteering within industry not related with oil and gas is pointless.

If not working in other postions try to get and invest your capital and run your own business. What is important is that you will find out how to manage and develop it. Surely being entreprenuer is not easy but this could be really challenging and demanding with a positive effect on your future. You can always treat the current problem as a challenge. Besides, there are always different raw materials that are worth extracting. People drill not only to extract oil or gas, there is demand for plenty of geothermal water, coal and many chemical elements. We need to understand that the world seeks for automation of extraction process to cut costs to the minimum level. There is no point in engaging people if machines can do the same work for us. Still, this is a chance for engineers to work on these problems and try to figure out how to both maximize production and minimaze costs.

And to sum up, you do not have to take under consideration cliché like „build your network”. Obviously, it is a really important part of becoming successful but one should do it constantly, not just when oil price is low and everyone is looking for the last resort. The world is cruel and potential engineers are not supposed to act like lost kids or creatures controlled by others. Show everyone else that you are able to survive and live well even before oil price bounces back.

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

U.S. has lost 70,000 oil jobs in the past year

U.S. has lost 70,000 oil jobs in the past year

Sadly, it has been a poor year for oil industry. Oil prices not only stayed at very low level but also were systematically dropping down to 35$ a barrel. Cheap crude affects global economy and makes current oil market environment unsunstainable. Global crude supplies are highly outweighed and crude storages may not start to deciline until 2017.

The Dallas Fed estimates in a new report that U.S. has lost about 70,000 oil and gas jobs since October 2014 what equals 14.5 percent drop in the 14 months after the domestic shale drilling boom that drew thousands to Houston’s oil hub began a steep decline.

Iran wants to pump an additional 500,000 barrels a day when western sanctions on its oil exports happen to be eased next year. Goldman Sachs believes that OPEC, which includes Iran, will boost its daily production in 2016 by 640,000 barrels. Additional barrels on market certainly will not enhance chances for crude to be more expensive.

These factors make high extraction unprofitable for oil companies and consequently less people are needed to control this process. Workers from huge companies such as; Schlumberger, Halliburton, Baker Hughes and British Petroleum were made redundant.

Apart from consumers with high transportation and manufacturing costs cheap crude worries entire world. Current market situation makes future uncertain especially for students and recent graduates who are seeking for opportunities in oil companies. However, we do know that such low prices are not beneficial for many and will eventually start to increase.

http://fuelfix.com/blog/2015/12/24/dallas-fed-says-u-s-oil-bankruptcies-at-great-recession-era-levels/

oil jobs lost 3