<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>
 

Another natural gas deposit discovered in Israel

Another natural gas deposit discovered in Israel

Independent exploration and production firm Noble Energy announced on Wednesday that they  made a new deep-water natural gas discovery off Israel.

The company founded by Lloyd Noble is the operator of the license where the Karish well is located, about 20 miles northeast of the Tamar field in the Mediterranean Sea. Noble said the well encountered 184 feet of net natural gas pay.

Discovered gross resources, combined with resources in an adjacent block, are estimated to range between 1.6 trillion and 2 trillion cubic feet of natural gas, the company said.The find marks the seventh consecutive field discovery for Noble Energy and its partners in the Levant Basin of the eastern Mediterranean Sea.

In addition to being the operator, Noble Energy holds a roughly 47 percent stake in the license where the well sits. Avner Oil and Delek Drilling also have stakes.Noble Energy has onshore operations in the U.S. and offshore operations in the Gulf of Mexico, eastern Mediterranean and West Africa.

Read more: Fuel Fix

Lekoil – next steps in West Africa

Lekoil – next steps in West Africa

Young oil company Lekoil Nigeria raised $48.6 million from investors as part of its listing on London’s Alternative Investment Market. The firm plans to use the funds to become a pan-African oil and gas business.

Until now it has an agreement with Afren witch gain a 27-percent interest in the OPL310 license, offshore Nigeria, and its holds a 69.75-percent interest in Blocks 2514 A & B, offshore Namibia.

OPL310 license located in the Dahomey-Benin Basin , has prospective resources estimated at around 128.5 million barrels of oil equivalent (MMboe).

According to Chief Executive Olalekan Akinyanmi, Lekoil plans to take advantage of the undoubted opportunities in Nigeria for indigenous businesses. Obviously these are great steps towards development and production business in Africa.

Read more:

Rigzone

Across the ocean drilling and explorating- how drillships work?

Across the ocean drilling and explorating- how drillships work?

Have you heard that drillships are modificated marine vessels?
The first drillship was the Cuss 1 created especially for Mohole project which was an ambitious attempt to drill through the Earth’s crust into the Mohorovičić discontinuity and was executed from 1961 to 1966. Fortunately, the collapse of these plans didn’t prevent fast-developing technology of the drillships. Nowadays, these units are fitted with a drilling derrick and moon pool.

Additionally, drillships have extensive mooring or positioning equipment, as well as a helipad to receive supplies and transport staff. In order to drill, column called as marine riser need to pass through the vessel’s moon pool
and connect outlet of the well with the bottom of the drillship.
The major advantage is possibility to drill on very deep waters, from 610 to even 3,048 meter! Furthermore, drillships are completely independent, in contrast to semi-submersibles and jackup barges which need to be transported by another units like seagoing tugs.

Drawbacks? The main disadvantage is susceptibility to being agitated by waves, wind and currents. It’s especially troublesome when the vessel is actually drilling, because the drillship is connected to equipment thousands of feet under the sea. This is why these units are equipped with the most sensitive mooring systems. Sometimes, especially on the shallower waters, drillships are moored to the seafloor with a few anchors but when waters are deeper drillships depend on dynamic positioning systems (DPS) to keep the vessel in place while drilling.
The most expensive drillship ever built is DrillMAX ICE constructed in South Korea.

More you can find on:
How Does a Drillship Work? |RIGZONE

Would you like to work among staff of the drillship? Share your opinon with us.

Photo by Aker Solutions

The United States to start fuelling the World

The United States to start fuelling the World

Federal government authorities agreed on global export of American natural gas. This essential decision gets historic importance in energy market diversification.

Freeport LNG, Texas may be the first facility eligible to become full played liquefying  and shipping terminal in the United States as if Energy Department reviews its application. Terminal was built four years ago and now modified for total $10 billion. Freeport LNG’s management has already concluded preliminary agreements with Japaneese Chubu Electric Power and Osaka Gas and also with BP. Initial overseas exports could start this Summer.

“This incremental, thoughtful approach supports an increased level of natural gas production and adds certainty for domestic manufacturers who seek to invest in the U.S. and grow jobs,” Dow Chemical Co. management said.

Authorities set limit of 1.4 billion cubic feet daily shipping over the next 20 years. More than 10 companies by this time requested  permission to export US-produced natural gas. Decision threatens European gas monopolist and might change everyday life of EU citizens.

Feds give Texas project license to broadly export LNG || Fuelfix

CORRECTION:

“ConocoPhillips does not have liquefaction capacity as part of this newly announced export licensing. ConocoPhillips is a managing partner in the Freeport LNG facility and has import capacity.
ConocoPhillips has a long-term agreement with Freeport LNG Development, L.P. to utilize 0.9  BCFD of regasification capacity at Freeport’s 1.5  BCFD LNG receiving terminal in Quintana, Texas. The terminal became operational in 2008. In order to deliver natural gas from the Freeport Terminal to market, ConocoPhillips constructed a 32-mile, 42-inch pipeline from the terminal to a point near Iowa Colony, Texas. Market conditions currently favor the flow of liquefied natural gas (LNG) to European and Asian markets; therefore, the company’s near-to-mid-term utilization of the terminal and the pipeline is expected to be limited to LNG storage and related activities.” We are utterly sorry for any misconceptions.

Will the spill kill the deal?

Will the spill kill the deal?

Easter holidays came out to not be very lucky week for the industry. While we were working on new issue of YoungPetro covering ExxonValdez spill from late 80’s North-American oilers got hit by two nasty accidents. First, Canadian Pacific Railway train derailed in Minessota, damaging three tankers and leaking around 15,000 gallons of fuel, then two days later Pegasus pipeline raptured in Arkansas spilling thousands barrels of oil and forcing Exxon to shut it down and evacuate 22 houses.

While response teams are working to clean up the oil, U.S. State Department is considering the fate of the 800,000 bpd Keystone XL pipeline, which would carry crude from Canada’s oil sands to the Gulf Coast. The fact that both events involves crude oil extracted from those sands definitely will not be helpful and even they are the first incidents since North-American oil boom started, it gives perfect argument for opponents of the new pipeline. Keystone XL is designed to relief Pegasus in oil transport from Canada to the south refining center. The 65-years-old Pegasus is 848-mile pipeline used to transport crude oil from Texas to Illinois. In 2006 Exxon reversed it to move crude from Illinois to Texas in response to growing Canadian oil production and the ability of U.S. Gulf Coast refineries to process heavy crude. It can carry more than 90,000 barrels per day.

Nearly two years ago Exxon grappled with another crude oil pipeline rupture that sent 1,500 barrels into the Yellowstone River in Montana. Also in November 2010 U.S. Department of Transportation imposed ExxonMobil Pipeline Co with a fine of $26,200 for allegedly allowing more than 5 years to lapse between inspections of a stretch of Pegasus that underlies the Mississippi River, between Missouri and Illinois, last decade.

Exxon pipeline leaks thousands of barrels of Canadian oil in Arkansas | Reuters

Train hauling Canadian oil derails in Minnesota | Reuters


 It seems like a human factor played huge role in these incidents and that regular inspections and renovations could easily reduce risk of it’s recurrence. What do you guys think was real cause of the problem?

Learn more about pipelines:

PetroGraphics: U.S. Pipelines 101

Photo by: Nasdaf (reddit.com)

Why Saudi Arabia can not produce Its own shale gas?

Why Saudi Arabia can not produce Its own shale gas?

According to estimates by Baker Hughes Inc., Saudi Arabia may hold even about 645 trillion cubic feet of technically recoverable shale gas. It gives this country the fifth place in the world in terms of shale gas reserves, behind China, the U.S., Argentina and Mexico.

Several oil and gas majors, including Halliburton Co. and Schlumberger Ltd. are already invested in Saudi operations. Presently, both firms have research centers up and running in Saudi Arabia, hoping to discover how best to develop and exploit that country’s rich shale reserves.

Nevertheless, Saudi Arabia may need at least a decade to develop shale-gas production  to a wide scale due to the desert kingdom’s short supplies of water.

Finding the necessary amount of water in the regions where Saudi Arabian Oil Co. is exploring for shale gas will be difficult, according to Amin Nasser, senior vice president of upstream at the company known as Saudi Aramco. “The infrastructure cost will go down with time but water is going to remain a challenge” he said March 10 at an oil and gas conference in Manama, Bahrain.

Saudi Arabia’s shale plans may be slowed by lack of water |fuelfix

How about you? What’s your opinion about it? Don’t hesitate to share your opinion with us.

Photo: AP file

Talisman Energy may withdraw from Poland

Talisman Energy may withdraw from Poland

Yesterday’s announcement made clear that Talisman Energy is changing its policy on Polish shales. After ExxonMobil it would be the second player recalculating shale resources unfavourably for Poland’s economy.

“Talisman Energy is changing its operation strategies for the coming years as the result of changes on the oil and gas market,” said Tomasz Gryzewski, director at Talisman Energy Poland

“Divestment options, including in Poland, are being considered. The management will release its decisions together with first-quarter results,” he said.

Since 2010 Calgary-based Talisman Energy holds 60% of three shale concessions in Pomerania. Possible divestment would probably mean Polish entrepreneur taking Canadian place.

What’s your opinion about Polish shale prospects? Fell free to comment at out facebook profile

Canada’s Talisman Energy says may quit Poland shale gas || Reuters

First successful gas extraction from frozen methane deposits

First successful gas extraction from frozen methane deposits

Japan has successfully extracted natural gas from frozen methane hydrate deposits under the sea, in the first example of production of the gas offshore, officials said on Tuesday. This is the milestone  and could be a step toward potential commercial production, though the costs of extracting gas from the seabed are much higher than for other forms of production.

Japaneese scientists used a specialistic technology relayed on reducing pressure in the underground layers which hold the methane hydrate 1,330 metres below the sea surface and then they dissolved it into micture of gas and water. In final step They were collecting the gas through a well.

“Ten years ago, everybody knew there was shale gas in the ground, but to extract it was too costly. Yet now it’s commercialised” said Ryo Minami, director of the oil and gas division at Japan’s Agency for Natural Resources during the performance, compared shale gas to frozen methane resources.

Methane hydrate is a form of methane gas frozen below the seabed or in permanently frozen ground called permafrost.  ‘Frozen methane’ may be compared to ice but burns like a candle if a flame is applied.

Japan Becomes first nation to extract ‘frozen gas’ from seabed |The Guardian

Are methane hydrates the next big energy source? What do you think about it? Share your opinion with us.

photo by JOGMEC

How is it possible to produce oil from sand?

How is it possible to produce oil from sand?

Have you ever heard about oil sands? This geologic formation is mixture of water, clay and viscous, heavy oil known as bitumen. Majority of the oil sands reserves are located in Canada where have been intensively exploiting for about 50 years. The largest accumulation of them is located across 54,000 square miles in three Alberta deposits. Oil is derived from the oil sands and may be refined and used to make e.g. jet fuel, gasoline or asphalt.
Canadian oil sands’ production has grown and nowadays is estimated to be more than 1 million barrels per day of U.S. oil imports.
Depending on depth of the reserves, producers used to deploy one of two methods: Surface Mining and In Situ drilling.
First of them is using when oil sands reserves are close to surface. Huge mining shovels dig into formation, then transport sandy mixture to large trucks. During the transport, bitumen begins to separate from the sands and other formations. Finally, the bitumen is removed and transported to refinery.
If reserves are deeper than 250 feet, using of mining shovels is unprofitable. In that case, producers use second method called In Situ Drilling. Average depth of single well drilled into the ground is about 1,300 ft. Bitumen oil is too heavy to flow automatically without being heated or diluted. Therefore, in  majority of in situ operations, steam is injected into the well to liquefy the bitumen, which is  pumped to the surface through another well.

What are Oil Sands? |oilsandsfactcheck

How about you? What is your opinion about oil sands? Share your opinion with us.

Photo from buffalopost.net

Royal Dutch Suspends Arctic Drilling in 2013

Royal Dutch Suspends Arctic Drilling in 2013

Recent announcement from Shell claims to pause offshore drilling in the Beaufort and Chukchi Seas following series of accidents. In result two drillships are being transported for repairs and would not be able to be done this year.

“We’ve made progress in Alaska, but this is a long-term programme that we are pursuing in a safe and measured way,” said  Marvin Odum, Director, Upstream Americas.  “Our decision to pause in 2013 will give us time to ensure the readiness of all our equipment and people following the drilling season in 2012.”

What is worth to consider ships were damaged in movement, not while drilling. Kulluk’s hull has undergone from heavy storm, Noble Discoverer suffered from explosion and fire in port.

“This pause — and it is only a pause in a multiyear drilling program that will ultimately provide great benefits both to the state of Alaska and the nation as a whole — is necessary for Shell to repair its ships and make the necessary updates to its exploration plans that will ensure a safe return to exploration soon,” Ms. Murkowski, Republican Senator from Alaska said in a statement.

How do you feel about Arctic offshore drilling?

With 2 Ships Damaged, Shell Suspends Arctic Drilling || NYTimes

Shell announces pause in Alaska drilling programme || Shell

Photo: gCaptain Forum // Alamy