<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>

What do we know about future of the industry?

What do we know about future of the industry?

Is there any chance that the future of the Oil & Gas industry will become more colourful than for the last 4 years? According to Deloitte’s oil, gas and chemicals industry executive survey(1) 2019 will be an unique chance to get back on track with overall confidence in the business. Thanks to digitalization, new buzzword for the industry, business feel safer and more peaceful than in the last few years. Upstream, downstream, almost every area sees possibility to use new methods in daily tasks. Whole transformation looks overwhelming, but it is necessary to survive in the age of energy transition. Operators want to spend less and get more- while at the same time divest acreage, infrastructure, or companies. In short-term companies want to improve operating efficiency. Thanks to collected data and new machine learning methods people are able to look at the data from completely new perspective. This year oil price is volatile mainly due to its dependency on politics. Sanctions on Iran, has increased to price 85$ for Brent in October. What’s interesting right now is that everyone expected oil price to skyrocket following US sanctions on Iran, what happened is totally the opposite. Oil prices have fallen a lot to 65$ for Brent. Nevertheless looking at the oil forecast, Tarfigura puts the oil per barrel at 100$ by the end of the year (3). Let’s see will they be right. We still do not know how the market would react with price this high.

Other report regarding current changes made by Accenture consulting – “The digital oil company: Getting ahead of the energy transition” (4) tells us that current technology change requires new ideas strengthened by proactive planning strategies and committing investment. Outdated thinking is not an option right now. A good digital strategy sometimes will require additional leadership skills, it most likely require talent to be open-minded and flexible in this transition.

These changes show us that we should not look at the industry same as few years ago. It is quite certain that jobs that people lost due to 2014 crisis will never come back. Right now if someone wants to start working in the industry, has to be prepared for different responsibilities and tasks. Let’s hope that the trust “given” to digital transition will not be in vain.



  1. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-er-2018-oil-gas-chemicals-survey.pdf
  2. http://www.oil-price.net/en/articles/saudi-arabia-backwards-despite-high-oil-price.php
  3. https://www.reuters.com/article/us-asia-oil-appec-trafigura/oil-could-rise-to-100-by-2019-as-global-markets-tighten-merchants-warn-idUSKCN1M40CB
  4. https://www.accenture.com/us-en/_acnmedia/PDF-58/Accenture-The-Digital-Oil-Company-Getting-Ahead-Of-The-Energy-Transition.pdf


The World’s Largest Oil & Gas Companies 2018

The World’s Largest Oil & Gas Companies 2018

This year’s ranking of the largest companies in the world brings few changes to the Oil & Gas companies. The biggest upturn can be seen in the revenues, all the big players reported significant growth due to the higher commodity prices than last year. With higher profits Oil & Gas companies were ranked higher this year, showing that if only oil keeps the price they can still compete with other modern high-value industries. The upturn we could have seen during last year brought Oil & Gas companies back to the head of this list. WTI crude with the average price $51 per barrel in 2017, raised $7 per barrel over the previous year, according to the U.S. Energy Information Administration. Earlier this year WTI oil prices hit the level of $72 per barrel but again fall to $65 due to the tension between US, Russia and Saudi Arabia. The last two indicated they may increase production later this year in response to US criticism about rising prices. Although there are signs to predict further oil prices rise such as Venezuelan production cut, the impact of Iranian sanctions on supply and Saudi Aramco IPO, where Saudi Arabia would prefer higher oil prices.

The Forbes Global 2000 is determined by a composite score of equally weighted measures of revenue, profits, assets and market value.

Royal Dutch Shell took the top spot among oil and gas companies on the Forbes Global 2000′s list of the biggest and most powerful public companies, surpassing last year’s leader Exxon Mobil Corp.

The Anglo-Dutch company was ranked 11th among all companies on the list, gaining 9 levels up from the 20th position last year. The US, Texas-based Exxon kept 13th, same as last year.

Chevron Corp. was the third-biggest oil and gas company on the list with a 21st ranking compared with 359th the previous year, which it ended $431 million in the red because of lower commodity prices, among other things.

France’s Total SA was the fourth-ranked oil and gas company on the list, followed by China Petroleum & Chemical Corp., known as Sinopec, and PetroChina Co. Ltd.

BP plc, Gazprom and Rosneft of Russia and India’s Reliance Industries Ltd. rounded out the top 10.

 The top 25 oil and gas companies on the Forbes Global 2000 earned $144.6 billion on sales of $2.9 trillion during the list’s 12-month measurement period, way up from $73 billion in earnings on sales of $2.2 trillion the previous year and $81 billion in earnings on sales of $2.6 trillion the year before that.

Source: Forbes

On Stream

On Stream

Polish Companies Will Enter a Fast-Growing Market

The Mars Shipyards & Offshore Group with extensive experience in offshore products and services and the LOTOS Petrobaltic, which one has been operating in the area of exploitation and production of hydrocarbons so far, will start cooperation in the scope of recycling of the drilling and production platforms as well as each kind of facilities, located on the depleted reservoirs. All of the upstream businesses of the  LOTOS Petrobaltic will be taken over by a newly established company- LOTOS Upstream. It is estimated, that the global expenditures on the liquidation of offshore platforms raised from $3.24 billion in 2013 to $4.3 billion  in 2015 and they will raise even to $40.6 billion in 2040 according to some predictions. At the moment, there is 629 out of almost 3000 of American offshore platforms intended for liquidation.

Venezuela Implements a New System of Cryptocurrency from the Oil Reserves

After loud announcements, the Venezuelan Government launches the Petro- cryptocurrency claimed to be backed by the country’s oil and mineral reserves, with expected value $60 per token and the total value of cryptocurrency predicted at $60 billion. The Petro’s pre-sale started on February 20th  and ends on March 19th.  82.4 mln tokens were made available and only a first day of the pre-sale brought $735 million. However, according to many analytics, the Petro seems to be a last resort of Venezuelan Government, which attempts to pull the failing country (with public debt at about $150 billion) out of the depths of economic crisis as well as to skirt U.S. financial sanctions. The same analysts says, that the Petro won’t bring real benefit either to Venezuela’s economy or its people. These more skeptical doubt, that the currency will thrive, because of lack of trust in government, which can have too much space to manipulate the token.

Commotion in the Eastern Part of the Mediterranean Sea

Freshly discovered reservoirs of natural gas in Cypriot economic waters have escalated the conflict between Cyprus and Turkey. Turkish warships have even temporarily blocked operations on ENI’s drilling rig in the first half of February and has triggered widespread criticism of the international community. President Erdogan has warned Cyprus as well as Greece against violation of Turkish economic waters. The source of conflict is national diversity of the island’s inhabitants. Turkey does not recognize the independence of the Cyprus, expresses doubts about the fair distribution of potential profits, claims that the rights to these reservoirs belong to the Turkish Cypriot and it is opposed to gas exploration until the Cypriot conflicts are resolved. It is worth to highlight, that some interest in offshore natural gas reservoirs in the Mediterranean Sea was also expressed by Polish Oil and Gas Company but for now it prioritizes the internal market.

Do you know what does the WECP abbreviation means?

Do you know what does the WECP abbreviation means?

There are many cities worldwide, that are globally considered to be international energy capitals but only 19 of them are associated in World Energy Cities Partnership (WECP). Members cooperate and exchange trends not only in petroleum or even business province, but also at the corporate, city, educational, and civic levels. WECP goals are to ensure city-to-city learning and achieve economic growth. Let’s take a look at six selected cities from different continents, whose membership of the WECP may not be obvious to everyone.

Villahermosa, Mexico

This capital and largest city of the State of Tabasco, located in the southernmost part of the Gulf of Mexico can be surly called the energy city of Mexico, with a dynamic petroleum activity taking place in its region. Nearly the totality of oil and more than 90% of domestic natural gas production is produced no further than 200 km from the city. The city is located about 55 km from the coast, with easy drive to or from seaports, which are responsible for 95% of Mexico’s crude oil export. You will find here such petroleum companies as Pemex Exploration and Production, Halliburton, NOV, CGG, Mexican Petroleum Institute (IMP), Schlumberger, Baker Hughes a GE company, Petrotec, Precision Drilling and few others.

Rio de Janeiro, Brazil

This city is known for its unique carnival and picturesque location. As the third largest city in Latin America it is also considered to be an important logistic hub as well as a great place for headquarters of major companies in Brazil. It is estimated that in the next years the oil and gas sector will account for 62% of investments with total value $614 billion, which gives over $380 billion for petroleum investments. Oil and gas together with three other sectors (mining, steel and petrochemicals) represent as much as 84% of future investments in the country. You can find here the leading service companies again, domestic Petrobras or even Statoil.

Esbjerg, Denmark

Esbjerg is one of the three European cities belonging to the WECP (alongside Aberdeen and Stavanger). The city is recognized as the Energy Metropolis of Denmark and plays a crucial role in the development of the energy sector- in both renewable and conventional province. The success of the city lies in a strategic location close to the North Sea and a seaport, which provide services for the Danish oil and gas industry, other companies operating on the Norwegian Continental Shelf and Wind Industry as a preassembly base port. Over 250 companies work in the industry, and the national Maersk emerges on their fronts. In 1991, Denmark became oil independent, and energy independent in 1997. The government in Copenhagen decided that by the middle of the century the country would completely give up dirty fuels.

Cape Town, South Africa

Second largest city in South Africa with 3,8 million citizens and the newest member of WECP. Because of established position of midstream and downstream activities, Cape Town has developed as an significant region for many local, regional and international oil and gas companies. The city is a great place to provide services and expertise for oil and gas exploitation in Africa.

Karamay, China

Karamay lies on the edge of the desert in the northwest of China. The city was founded exactly 60 years ago and today it is probably China’s richest city. Were it not for the resource commonly known as black gold, Karamay wouldn’t even exist. Local deposits are characterized by shallow depths and good quality. The Karamay Oilfield has started production in 1955 and it was developed by China National Petroleum Corporation. Total estimated oil reserves in place are around 3 billion barrels and production rate is centered on 290 000 barrels per day.

Perth, Australia

Perth together with Houston are founding members of WECP. Houston is the energy capital of the world, while Perth is the energy and resource capital of South East Asia and one of the best place to live. The region produces commercially over 50 different minerals, extracts 63% of the nation’s natural gas and handles 86% of LNG export. In the city you can find offices of oil and gas companies and oil services companies, which operate and support activities in Australia, across the Indian Ocean and Pacific region such as Chevron, ConocoPhillips, Shell and BHP Billiton. Due to the strategic location of the city, it becomes a rapidly growing city of energy, supplying countries undergoing a rapid urbanisation such as China, India and South-East Asia or these already highly developed as Japan and Korea.



Statoil reveals its prospect till 2030

12 February, 2018 News No comments
Statoil reveals its prospect till 2030

This leading petroleum company, which energise the lives of 170 million people every day, briefly sums up 2017. Statoil presents us also a vision what will the future be like.


In 2017 Statoil discovered  new reservoirs: near Norne with oil and gas reserves up to 80 million barrels and 20-50 million barrel gas field by Valemon Field, Gina Krog oil and gas field started production (8% shares belongs to PGNiG Upstream Norway AS), awarded 29 production licenses, approved Njord and Bauge development and operations plans. The company has started evaluation of new CO2 storage project on Norwegian continental shelf, acquired 40% share in Brazilian solar asset, launched the world’s first floating wind farm. Some other activities taken at the end of the year nearly tripled Statoil’s production in Brazil.

This year, the unique Aasta Hansteen project will be launched. This gas-field is located 300 km from Norwegian shore and lies 1300 m of water. These challenging conditions determine the need of specific solutions and the answer is the world’s largest spar platform, floating vertically in the sea, anchored in 1,300 metres of water. The project will help to secure gas for Europe for many years.

Statoil aims to reduce each kind of negative impact on the environment, inter alia to reduce annual CO2 emission by 3 million tonnes by 2030.  Most of CO2 emission, associating offshore production of oil and gas comes from gas turbines providing electricity for platforms. In 2019, a new field in the North Sea will be electrified by the electricity from shore because the power from shore comes from renewable sources mostly. This replacement of power source is realized as a part of Johan Sverdrup project. It will be also the first field to employ a so-called ,,digital twin” which is a technology used by NASA, F1 Racing and many others. It acts as a virtual, real time version of the installation in the computer system, through constant updating the model of Johan Sverdrup by sensors in real time.

Statoil has set a goal to spend up to 25% research funds for new energy solutions and reducing emission by 2020. The company is focused mainly on geothermal and hydrogen energy, looking for solutions to make these energy sources commercially feasible.

According to the International Energy Agency (IEA), the world must capture and store six billion tonnes of CO2 per year in 2050 to achieve global climate targets. Statoil has met this challenge since 1996, and in 2021 Statoil will have been capturing and storing CO2 for 25 years and so far has managed to capture and store over 23 million tons of carbon dioxide. By 2030 Statoil will cut two million tonnes of CO2 emissions on the Norwegian Continental Shelf. That amount corresponds to one million cars. In 2022 the company will be celebrating 50 years of existence.

In 2026 there will be 30 years since the Troll Oilfield has started production. Gradually, more and more natural gas instead of oil will be produced. Troll A was the first platform on the NCS, with electricity powered from shore. The field is also considered as a most important single contributor to the Norwegian national budget, producing hydrocarbons worth NOK 1,300 billion what’s equivalent to more than seven times spending on education in Norway.

The New York City set a target to cover 50% of the energy demand from renewable sources before 2030. Statoil won the auction for a wind farm outside NYC in 2016. This unique project was named Empire Wind and it is the first seawater enterprise in the USA. This project gives to Statoil an opportunity to utilize its offshore and engineering experience.



A Brief Look at the Oil Market

20 December, 2017 News No comments
A Brief Look at the Oil Market

What the 2017 has brought us?

The 2017 started the year with the crude oil Brent price at 55.5$ per barrel. If any dramatic happening disrupting world oil supply takes place till the end of the year, the 2017 will end up with the Brent oil price over 62$ per barrel. In that case, the average price for the 2017 will be about 54$ which means the increase by 20% as compared to the 2016. It is worth to notice the massive bounce back of crude oil prices in the second half of the year. In the first quarter of the 2017 the barrel of oil costed average about 54.5$, while in the last quarter it may be even 62$. In the middle of the year a couple of factors affected an oil trading. Tropical cyclones in the USA, blocks of crude oil pipelines by Nigerian community due to oil spill, OPEC deal to curb oil output and recent closure of the Forties Pipeline in the North Sea have certainly contributed to the current prices.

What the 2018 can bring us?

In December, OPEC members decided to extend oil-production cuts through end of the 2018. However, in the opinion of  International Energy Agency (IEA), oil extraction in countries out of OPEC will increase in the 2018 by 1.6 million barrels per day. The most significant production increase is expected in the USA, where in September the largest production of oil since April 2015 was recorded.  In the first week of December the output  increased to 9.78 million barrels per day which is the highest level since the 1983. The grow of drilling activity in the USA suggests further output increase in the upcoming months. According to estimates of the American Department of Energy (DoE), the daily production of the crude oil in the USA in the next year may exceed 10.02 million barrels. On the other hand, IEA expects that the world demand for crude oil will drop to 1.3 from present 1.5 million barrels per day.

The oil market shows signs of recovery. The whole 2017, and especially the significant bounce back of the oil price in the 4th quarter let us to be optimistic about the future. Even with rising production, the global oil market should stay balanced.



YoungPetro – 21st Issue – Winter 2017

YoungPetro – 21st Issue – Winter 2017

The wise man once said: Winter is coming! He was right, it is coming indeed and in some places, it is already there. Whether it is in your hometown yet or not, we bring you Winter Issue of the YoungPetro Magazine! It is packed with interesting articles, reports and much more! Enjoy reading and share with friends!


Annual Technical Conference and Exhibition in San Antonio 2017

Annual Technical Conference and Exhibition in San Antonio 2017

On 9–11 October, the Society of Petroleum Engineers (SPE) hosted global exploration and production professionals for the 2017 Annual Technical Conference and Exhibition (ATCE) at the Henry B. Gonzalez Convention Center in San Antonio, Texas, USA. During the 93rd annual event, 2018 SPE President Darcy Spady received the presidential gavel and officially commenced his presidency of the not-for-profit professional association.

SPE’s premier technical conference, ATCE presented best practices and emerging technologies to attending engineers, scientists, academia, managers and executives. The conference’s international exhibiting companies featured a broad range of technological innovations, new products and valuable industry services. ATCE 2017 featured nearly 400 technical papers in 46 technical sessions, plus panels and ePoster sessions.

“It was wonderful seeing SPE members from around the world this week, particularly our Gulf Coast members following the recent devastation of Hurricane Harvey,” said 2017 SPE President Janeen Judah. “From our session focused on learnings following the recent natural disaster to sessions on digital energy, ATCE once again delivered subject matter important to our members, industry professionals, the public, and the environment.”

Five panelists discussed “Sustainable Oil and Gas: Improving People’s Lives” in front of a packed ballroom at the Opening General Session. The panel was moderated by Eithne Treanor, ETreanor Media, and comprised Lorenzo Simonelli, chairman and CEO of Baker Hughes, a GE company; David Hager, president and CEO of Devon Energy; Khaled Al-Buraik, vice president for Saudi Aramco; Deborah Wince-Smith, president and CEO of the Council on Competitiveness; and Franklin Orr from Stanford University.

Tackling the challenges of sustainability, Hager said, requires creativity. “Creativity is at the heart of everything we do,” he said. He added later, “To do things tomorrow the way we do things currently is not going to provide the sustainability we need.”

Simonelli built on the idea of creativity by including the concept of disruption. “I think, as an industry, we’ve got to embrace disruption,” he said, adding, “How do we embrace that disruption and change much faster?”

Overall, more than 8,300 professionals from 60 countries attended this year’s event. Sessions focused on subjects such as creating databases of multiple data streams for analyzing how to improve performance and how R&D may be the key to companies’ survival. Speakers, including representatives from operating companies, governmental agencies and global leaders addressed commercializing digital controls and automation.

Also on Monday, Vicki Hollub, president and CEO of Occidental Petroleum Corporation, spoke at the Chairperson’s Luncheon. She cited three technologies that, although not new, have played a significant role in upstream development. Seismic imaging, horizontal drilling, and hydraulic fracturing all have succeeded in revolutionizing upstream practices. “The point is, you don’t to have to go too far for new ideas,” she said. “We are seeing the benefits of all three of these technologies at Occidental, most recently in our Permian Basin position.”

SPE’s Annual Reception and Banquet recognized individuals for their significant contributions to the oil and gas industry and SPE, while the President’s Luncheon offered the “State of the Society” address from Judah, who also passed the presidential gavel to Spady during the event.  An active SPE member since graduating from university, Spady most recently served on the SPE International Board as regional director for Canada and is the first Canadian elected as SPE president.

“While we’re confronted with a constantly changing industry landscape, SPE continues to fulfill its mission of collecting, disseminating, and exchanging technical knowledge as exhibited by ATCE 2017. It delivered one of the most innovative, forwarding thinking conferences in its nearly century long history,” said Spady.

“Though innovation and technology remain a core focus of this organization, the environment and community are also an essential part of our DNA for SPE members young and old — it is not a simple matter of choosing economy or environment, instead we choose both. As SPE’s new president, one of my main objectives will be to continue pushing these dialogues and actions across our society for the betterment of our industry and world.”


In addition to this on 9th of October in San Antonio was held the PetroBowl competition. After a tough quarterfinal battle with Batangas State University from Philippines, team representing AGH UST ended their PetroBowl adventure at quarterfinals as the best team in Europe and one of the eight best in the World! After this great success, came time for another event connected with our section. President of our chapter had opportunity to accept the Outstanding Student Chapter Award from Darcy Spady for the whole effort that we have put in this year into our student chapter.

We would like to thank our sponsors GAZ-SYSTEM S.A. and United Oilfield Services, as well as CRUX Fine Selection – partner of our chapter, thanks to them we had the opportunity to participate in such a prestigious event as the ATCE Conference.

The 2018 ATCE conference will be held 24–26 September in Dallas, Texas, USA.
For more information, visit www.atce.org.



New Discoveries in North-Western Poland

New Discoveries in North-Western Poland

Polish Oil and Gas Mining Company in collaboration with LOTOS Petrobaltic have started drilling exploratory well on a concession Kamień Pomorski. According to the estimates in the area of work being prepared, in commune Golczewo (West Pomeranian voivodeship) may be 7.5 million boe.

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Q2 Results – Oil Companies Make Profit in Tough Times

Q2 Results – Oil Companies Make Profit in Tough Times

During last few days major Oil & Gas Companies revealed their second-quarter earnings and believe or not, almost all of them are higher than expected. Is it sign of the end of downturn and back to wealthy times? I wouldn’t say so, but reported results shows that Oil Companies adapted to the market conditions and now they can make profit from diverse sources like downstream or manufacturing and not only from Upstream. Furthermore, in many cases Upstream is now not the strongest branch. The price around $50 per barrel isn’t that bad for companies to prosper well. The biggest companies managed it by making redundancy and savings.

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