<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>
 

Oil and Gas Industry Career

Oil and Gas Industry Career

In the modern age, people have the choice to choose from a lot of professional career. It is easy for people now to pursue a career compared to old generations. Most of the educational systems are career oriented and students can shape their career from their young age onwards. The advancements in technology have allowed us to think about different careers that will help us to flourish professionally and personally.

Oil and gas are two of the main industries that present many job offers. You can find a lot of people pursuing career in oil and gas industry. Oil and gas industry helps numerous people to plan a career in this field and lets you become successful as a professional as well. More or less everyone’s career in oil and gas is distinctive. Since the career in oil and gas industry is team-oriented, the people who wish to practice a career in this field should have a good grasp of the industry. Here is a look at how to begin a career in oil and gas industry:

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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

BP delivered a massive jobs boost.

BP delivered a massive jobs boost.

Today BP has announced a commitment to stay at the North Sea for the next 40 years.  The installation of the modules for its Clair Ridge platform and the imminent arrival of the storage vessel Glen Lyon has been hailed as a “once in lifetime” double win for the region. Thanks to that investment they will be able to hire more than 500 people and exploit over one billion barrels of oil.

Since O&G sector is now going through hard time according to plummeting oil prices and driven down by reducing the employment, such information is a good sign that the industy will recover. More than 65,000 jobs have gone with more redundancies in the pipeline across the sector due to numerous projects being put on hold. Operators have slashed costs as profit margins have dropped significantly over the past two years.

In reference to Mr. Ian Wood’s opinion industry will recover in 5 years. The new jobs are linked to the hook-up and commissioning of the two projects with the work expected to last 18 months.

Source: http://www.oilandgaspeople.com

Big money at play and new workplaces in the Beaufort Sea?

Big money at play and new workplaces in the Beaufort Sea?

The Inuvialuit Regional Corporation, organization established by the agreement between the Government of Canada and the InuvialuitInuit of Canada’s Western Arctic people, says that Beaufort Sea Oil and Gas Licences shouldn’t be held foreverLocal institute believes that the federal government should allow corporations to extract hydrocarbon reservoir discovered in this region over 50 years ago! They are consider that it could change the lives of the local population. 

The problem is that the companies want to change contract that their nine-year licences to explore for oil in the deep waters of the Beaufort Sea can be extended to 16 years. Corporations also explain themselves that they have too little time to complete the necessary documents and to work out optimal for this region extraction technology. Companies know that there is a lot of money because of that Imperial Oil and BP gave the government security deposits about $445 millions. Federal goverment agreed with it provided that there will be drilling in otherwise a part of this amount is lost

However, the situation in this area is much more complicated. The facts are that companies currently hold the rights to 48 significant discoveries covering almost 200,000 hectares in the Beaufort Sea, but there is no oil production.

Where is the real problem? Maybe, according to the Northern Oil and Gas Report, some discoveries may not be immediately economic to produce because of the lack of optimal technology? Perhaps the reason is the lack of agreement between federal government and comapnies? We have no answers to these questions. Undoubtedly oil production in the Beaufort Sea would help the oil industry in the fight against the crisis and for the ‘Young Petro People’ means new workplaces which is very positive information. 

Sources: www.cbc.ca

              www.oilandgaspeople.com

Image: www.news.utoronto.ca

How can we survive a downturn as a student?

How can we survive a downturn as a student?

Since June 2014, oil price has dropped dramatically until the current USD30 per barrel. The plummeting of oil price is still one of the hottest issues and biggest energy stories in the world. Some peoples are happy with the low oil price, but some aren’t, especially oil and gas companies.

As oil and gas students, we cannot deny that low oil price does affect us. As a fresh graduate of the oil and gas industry, you face a challenge to search for a job in the industry. As an intern-seeker, you suffer a hardship to search for the intern as most of the projects have been called off. No additional work force is needed and when worse come to worst, some companies have to lay off part of its workforce In order to survive during the downturn.

Despite the grim situation of the oil and gas industry, as students, we should not lose our hope to our future industry. This is just part of a repeated history. I believe oil price is soon to be bounced back. Therefore, as a student, what you need to do is to prepare yourself and be ready to enter the industry. Here are some tips for students to survive the downturn:

Success

  • Maintain/upgrade your academic results

We cannot deny that results play an important role in determining a student’s performance and achievements, especially during the downturn. It is your responsibility as a student to pass your academic with flying colors. If you have failed this responsibility as a student, how can a company hires you by giving you a more challenging and bigger responsibility? To stand out from a crowd of competitors, you have to be excellent.

 

  • Grow your connections

As a student, growing your connection will increase your visibility in the industry. Always grab the opportunity and present yourself whenever there are conference, company talks or exhibitions. Let the company know you and you will get a higher chance in employment. Don’t only grow your connection to FB, Instagram or Twitter. You can enjoy yourself in social media, but I suggest you to move your interest to LinkedIn, which is a “professional” social media. A rising number of recruiters are sourcing their ideal candidates on LinkedIn.

 

  • Volunteer yourself

Helping others is actually helping yourself. Volunteering has many benefits for us, especially to a student where you can learn a new skills and experience, get to know more new friends and also get in touch with professional people. Don’t just admire other people’s experience, you have to step forward to gain your own experiences by volunteering. There are many ways out there that are related to oil and gas industry where you can volunteer yourself, for example: SPE Student Volunteer, Student Ambassador, Energy4me and so on.

 

  • Equip yourself with new skills and updated knowledge

The downturn is always a good period for us to increase our efficiency and gain the most useful experience. The energy industry is always fresh and you have to always be alert by updating your knowledge and technologies in the industry. You have to learn to be efficient so that you can hit two birds with one stone. Learn a new skill and be diverse. Being diverse means you have to equip yourself with other knowledge, by not only focus on one discipline. If possible, taking a minor subject is a good choice for you.

 

  • Join more society’s activities

There are many professional societies out there that are related to the oil and gas industry, for example: Society of Petroleum Engineers (SPE), American Association Petroleum Geologist (AAPG), Society of Exploration Geophysicists (SEG), European Association of Geoscientists (EAGE) and so on. Engaging yourself with these society activities will bring you much more benefit than you would expect, for instance: widening your connection, gaining more experience and increasing your knowledge and skills.

More offshore jobs in Norway since 2018.

More offshore jobs in Norway since 2018.

Since we have heard the assumptions that the price of oil will improve next year, many experts are announcing their opinions in this field. The Norwegian Oil and Gas Association has also published the report forecasting rise of need for recruitment by 2020.

The new report, conducted by the International Research Institute of Stavanger, says that the workforce will be declining till 2018, when it will bounce from the bottom and rise back to current levels by 2020- necessitating 13,000 new hires, in addition to the openings due to attrition.

“Based on the new figures we can affirm that those who start on a technological education in autumn 2016 are likely to be welcomed with open arms by the oil and gas industry once they have graduated,” said Karl Eirik Schjøtt-Pedersen, the Association’s CEO. On the other hand these are not yet optimistic informations for people currently looking for work or employed, because it shows that 10, 000 more positions will be reduced by 2018.

According to Prime Minister of Norway, Erna Solberg’s, speech the petroleum market is in tough situation now indeed, but exploration of North Sea would be there for three decades more. Solberg also encouraged industry to redouble its efforts to cut carbon emissions in its activities.

Source: http://www.maritime-executive.com

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.

Gas Condensate Banking Effects

Gas Condensate Banking Effects

Gas condensate reservoirs have been classified between volatile oil and wet gas reservoirs. It means that the reservoir temperature is between the critical temperature and the cricondentherm (maximum temperature at which gas-liquid phases can coexist). Gas condensate reservoirs exhibit a complex behavior due to the existence of a two-fluid system (it is a single-phase fluid at original reservoir conditions) composed of reservoir gas and liquid condensate. When the pressure of the reservoir falls below dew point due to production, the original single-phase (gas phase) literally disappears because of the formation of condensates (liquid phase). The behaviours of such systems are complex and still not fully understood, especially in the near-wellbore region, where the largest pressure drops occur. It is important to mention that two kinds of gas condensate reservoirs exist: rich gas condensate reservoirs (e.g. Alen field – Equatorial Guinea) and lean gas condensate reservoirs (e.g. Arun field – Indonesia, Camisea field – Peru).

Gas Condensate Blockage

Condensate banking formation is a major problem when producing gas condensate fields. From the first day a gas condensate field is being produced, heavy components (valuable components) in the reservoir condense near the wellbore and continue growing over time. These condensate liquids are formed because the reservoir pressure falls below dew point (point where the first drop of liquid appears), and reduce the productivity over time. Productivity losses of around 50% (or even more) have been registered. Taking for example the case of the Arun field in Indonesia, where after 10 years of production a significant loss in well productivity occurred.

In technical literature, many authors proposed the existence of flow regions (from 2 to 4). Beyond the discussion of the existence of 2, 3 or even 4 flow regions in the reservoir, in this article we will focus only in the near wellbore region, where the principal phenomena occur due to condensate banking. Generally speaking there are two main factors that affect well deliverability when producing gas condensate reservoirs: Coupling and Forchheimer effects.

In the near wellbore region, where the gas flow rate is higher, an important effect called Forchheimer effect appears which produces higher pressure drawdown which results in major gas condensation that fills up the pore throats, and  consequently the gas relative permeability is reduced, decreasing the well deliverability. However, when condensation reaches a critical saturation, a “positive effect” occurs, which is called the coupling effect, that essentially explains the increment of the condensate relative permeability with increasing velocity and decreasing interfacial tension.

The evidence is overwhelming, it does not matter whether it is a rich or lean gas condensate reservoir, with production over time, the quantity of liquids in the near wellbore region will increase, affecting the well deliverability which is translated as a reduction in the production. Working to avoid a high pressure drawdown in retrograde gas condensate reservoirs has become an important topic today.

An Essential Skill Many Graduates Lack

An Essential Skill Many Graduates Lack

What comes to mind when we talk about skills future employers want to see in recent graduates is; communication, problem solving, leadership, creativity, and adaptability skills. While such skills are undoubtedly in demand, an essential skill many employers want graduates to have which you might not even have thought about is called quantitative reasoning skill. You are probably wondering what quantitative reasoning skill is all about? To give you a little bit of understanding, consider the following example:

You are given a calculation based question to solve, and you are asked to take a decision based on the result you get from your calculation. The decision might be to either invest in a new business opportunity or not, or to choose a product based on the product’s price and quality and the list goes down. The skill required to take such decisions is called quantitative reasoning.

What is quantitative reasoning skill?

Quantitative reasoning skill ( QR ) is the ability to understand and use quantitative information to come to a solid conclusion. It involves the application of basic mathematical, and critical thinking skills to draw justified conclusions from facts and evidence available at hand. QR is considered among the most important intellectual skills such as communication fluency, information literacy, and analytical thinking that all university graduates should acquire.

Why QR is so important?

The importance of QR skill comes from the fact that it is a real world skill that future employers want you to have. Whether you are taking engineering, science, or even arts major, quantitative reasoning is a skill everyone need these days. There is no major I can think of that does not need a quantitative understanding. Whether you are still student, recent graduate or even having a career right now, cultivating this skill is a crucial factor that will determine how successful you will be.

But, do all graduates have this important skill?

As a recent graduate, I can tell you the answer. Not all students who graduate have this skill. And even those graduates who have QR skill, it may not be as strong as required by employers. The issue comes down to few reasons. First of all, students are often not informed by the academia about the importance of this skill in their career readiness and life in general. Therefore, they can not develop something they do not know its benefits for them or why they need it in their career.

The second reason is the misconception that QR skill is already thought in math classes. The truth is, there is a huge difference between QR and math. It is true that QR utilizes the basic mathematical skills in getting the calculation result, however it is more about the meaning of the calculation results rather than how to perform the calculation itself. As a result, academic subjects are more into recalling math procedures rather than encouraging students to think critically about problems in real-life contexts.

How do you cultivate and develop QR skills?

For you to have the ability to understand and use statistical data to make informed decisions, you must first have a sense of numbers, measurements and what they really represent. This is due to the fact that your accurate sense of numbers and measurements backed by a strong mathematical knowledge base is what will enable you to make accurate conclusions.

Once that put in place, the next step is to practice quantitative reasoning in diverse settings. Find problems that require you to think critically, analyze data, interpret numbers to reach decisions based on those results you get from solving such problems. A better way is to practice solving problems in real-life contest. That means taking problems from current real-life events. This will surely motivates you to go beyond recalling procedures and solving mathematical problems to think critically about the result you get and relate what you learn to the real life.

As a student or recent graduate or even having an entry level career, you need QR skills more than any other skills in your daily life and your career readiness. Strong quantitative reasoning skills will allow you to make sense of complex situations in your everyday life and enable you to make informed choices and decisions. It is never too late to learn something new, if you have that skill, make it better, and if you do not have it, go and cultivate it.

The O&G Industry Downturn: What It Means For Recent Grads? And How To Survive It?

The O&G Industry Downturn: What It Means For Recent Grads? And How To Survive It?

It was June 2014 when the oil and gas industry started to experience a downward market. Oil prices fell sharply to around $70 per barrel by November 2014, and this marked an end to a four-year period of price stability above $100 per barrel. Besides the geopolitical and economic factors responsible for the drastic change in oil prices, the prominent factor for the crash of oil prices was the unbalance between supply and demand.

According to the December 2014 monthly update of the United States Energy Information Administration ( EIA ), there was an increase in supply of liquid fuels by 1.8 million B/D to 92 million B/ in 2014, whereas demand did not keep pace. The global demand was low due to high oil prices for too long and low economic activities. On the other hand, supply was up because of U.S. shale oil boom, and the return of Libya’s production. Decreased demand and increased supply directly leads to low oil prices.

It was expected that the Organization of the Petroleum Exporting Countries would play its conventional role of protecting the oil prices by reducing its quota to balance the supply and demand as it always did. However, what OPEC did was totally the opposite. OPEC decided to not cut production in a new strategy to protect its market-share. Consequently, the O&G industry was dealt a crushing blow. The crash in oil prices has led to many layoffs, spending cut backs, project deferrals, service price deflation, renegotiation and significant delays at major projects and this officially announces that the O&G industry is in a downturn.

What The Downturn Means For Recent Grads?

The crash in oil prices especially after November 2014 -when OPEC decided to stick to its market-share strategy- has led to many layoffs from both operating and service companies along with a slowdown in the hiring activities or completely putting a freeze on hiring. As a consequence, many O&G professionals have lost their jobs and fresh graduates are finding it extremely hard to secure a job in an industry they spent four years earning an entry ticket to.

The increase in the number of people seeking jobs -both due to the current layoffs that left many professionals unemployed and recent graduates- accompanied with few or no job postings from O&G companies has undoubtedly made 2014 a pivotal point where a transition in the market type from “candidate-driven market” to a “client-driven market” took place.

In a client-driven market where demand for jobs is much higher than what is being offered, the competition is extremely high and the possibilities of securing a job is much lower especially for recent graduates. Job applicants with experiences and job training are more preferred than recent graduates in such a market. This is due to the fact that the value they add to the company comes much faster than what fresh graduates do, and this is due to the longer time required to train fresh graduates.

Even in the case of fresh graduates job openings; in a client-driven market, O&G companies are at an advantage of having a chance to choose the best candidates with even less salary. This is due to the fact that in a client-driven market, many applicants compete over few job openings unlike in a candidate-driven market where prospective candidates are currently working, and there is a need for new workforce which gives an advantage for any applicant to get the job with less competition.

Low oil prices and its consequences on the hiring activities has also driven many petroleum related courses’ graduates to either divert into different industries -sometimes not even related to their field of study- or spend their time at home doing nothing other than killing time waiting for the market to recover. It is true that fresh graduates and professionals who lost their jobs due to the crash in oil prices are experiencing a bad time, but this is the price to keep the industry going and guarantee an even-keeled revenue stream and business sustainability.

How Can Recent Grads Survive The Downturn?

It is important to keep in mind that the oil and gas business is boom and bust by nature, this is not the first price bust in the O&G industry and definitely will not be the last. A similar downturn occurred in the late 1980s through the 1990s and the most recent downturn occurred in 2008. Downturns are harsh realities that can not be avoided as it is the nature of this business. What you can do as a recent graduate who is passionate about this industry is to navigate the industry during the downturn in the following ways:

1- Keep in mind that it will get worse before it gets better as the current events in 2015 are indicating signs of no price recovery such as the continuous increase in production from Iraq, Iran and Libya and few other countries, China’s dramatic slowdown, refining maintenance season which is about to begin soon, Greek crisis and lifting sanctions from Iran. Knowing that things will get worse will ignite the fire within you to take the following advice seriously and work hard.

2- Get informed about the current events in the oil and gas industry. Know where layoffs happened, which sectors are more affected and which are still having employment activities and apply for them. Besides, knowing where new projects are taking place will help you to increase your possibilities of getting a job by applying for jobs in response to the need.

3- Diversify. This means keeping your petroleum engineering skills broad. It doesn’t matter what your focus is or what your final year project was, you should learn about other engineering disciplines, and read more. It also means cultivating new skills that will surely set you apart from the rest of your peers.

4- Widen your connections. This is a very crucial point not only for getting a job, but also for your career development and success. Create a LinkedIn profile if you do not have one, make it professional, start adding people and network with them. Attend conferences and events related to your industry. All those will help you widen your network, which comes with an advantage of increasing opportunities.

5- Volunteering. Volunteering during a downturn has career benefits. Apart from enhancing your industry network which surely can help you get a job, it develops your leadership skills, provides a résumé boost, and it gives you access to technical information. Never underestimate the outcomes of any volunteer activity even if it is not related to your field of study. Just go for it, and learn. Chances are, it will pay you back later.

6- Get a job that will help you be independent and support you to make a living. It does not matter where as long as you work, and make money. And if you can afford to further your education, do so. This adds value and helps increase your chances of getting a job later especially if you further your study in business administration, finance and so on.

The downturn is going nowhere at least for the end of 2015, and it is your decision how to react to that. If the O&G industry is your passion, I trust you will fight and win the battle. But before that happens, a lot must be done, so start now.