<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>

Eni bets and Eni wins

Eni bets and Eni wins

Latest discoveries and purchases made Eni the biggest shareholder of oil and natural gas fields in East Africa increasing their resources from 30 to 68 trillion m³. The Italian giant is about to operate most of Mozambique offshore findings. Remote and unstable areas with almost none infrastructural bases are risky for development. But without risk there is no reward. That troublesome region is not the first and last in which Eni have taken part.

Eni thrives in North Africa. Thanks to executives politics they survived Libyan civil war and came along smoothly. Italians plan to explore Barents Sea and Black Sea together with Rosneft. And what might be extremely prosperous – Chinese mainland shale gas formations, for which Eni signed a deal with China National Petroleum Corp.

As Mr Scaroni said “We are preparing the balance sheet to be ready to develop all the discoveries we have made” there is nothing to do but to wish them good luck and wave of prospects.

For more specific information switch to:
New York Times
Seeking Alpha

photo: REUTERS, offshoreenergytoday.com

BP has evacuated foreign staff from Algeria

BP has evacuated foreign staff from Algeria

Due to recent events in Algeria, BP has decided to evacuate foreign staff from the country.
“Supporting our colleagues and their families at a time of extreme concern is essential, and we are seeking to support them in every way we can” said BP Chief Executive Bob Dudley in a press statement.

Last Wednesday in the morning Islamist militants attacked the facility, taking dozens of hostages.
Statoil and BP, who operate as a joint venture at In Amenas (1150 kilometers from Algiers- capital of Algeria), confirmed that several of their employees were working at the facility. Spokesman of militants claimed that some 35 hostages and 15 militants had been killed in the attack on the In Amenas facility by Algerian armed forces. Quoting International Energy Agency  “The kidnapping of the foreign workers at In Amenas had cast “a dark cloud” over the outlook for the country’s energy sector”.

BP, Foreign Workers Evacuated from Algeria   | RIGZONE

Is work in volatile countries like Algeria are getting more and more dangerous? What about you? Are you willing to work in such places?


Photo by wtop.com

Shale gas utterly changed the American gas market – how about Polish?

Shale gas utterly changed the American gas market – how about Polish?

Within four years, the heating costs in the USA declined by half, thanks to the shale gas extraction. This situation may happen to Poland as well, but on a minor scale, due to disparities in the  extraction costs.

Lower natural gas prices have attracted many investors to the USA, mainly in the chemistry business bringing multibillion investments in  chemical factories, for  which the natural gas is the main source of energy. Experts claim that the shale gas revolution in Poland may be less successful, because of the high drilling costs. Execution of a borehole in the USA costs about USD 8-9 million. Polish company PGNiG claims that these costs, including the process of fracturing, oscillate between USD  10-15 million. The main reasons behind this disparity include: a more intricate geological structure and more stringent environmental restrictions in Poland. In Europe there is a shortage of drilling devices, countries are more densely populated and shale gas deposits lay much deeper than in the USA.

In the USA and Canada, 400 thousand exploratory and extractive wells have been executed so far.  Each costed between USD 3,5 and 9 million. In Poland, to date, only 33 exploratory boreholes have been started, with the total cost under  USD 1 billion. The Ministry of the Environment claims that by the year 2021, further 309 drilling wells will have been executed(128 for sure and additional 181 optionally, depending on the investors).

So, do you think Poland can achieve such a successful results in future? What will it depend on? Share your opinion with us.

Russia continues the policy of state companies’ monopoly

Russia continues the policy of state companies’ monopoly

It seems that the Russian Arctic Shelf’s oil will be all under control of two state companies: Gazprom and Rosneft.  The Federal Mineral Agency approved the companies’ applications for over a dozen new licences in the area.

These decisions make the number of prospective areas in the shelf left is rapidly shrinking. It leaves limited opportunities for private companies to get in the game.

Firstly, the Ministry of Natural Resources proposed to open the shelf  for private companies. But today’s legislation allows only state-controlled companies with at least five years of offshore experiences to operate on the Arctic shelf.

Lukoil and Zarubezhneft, companies that are interested in operating in the Arctic waters, are fighting hard to break the monopoly of two state-controlled giants. It is a very difficult struggle, because heads of Gazprom and Rosneft concentrate their efforts not to let other companies get offshore licences on the shelf.


Russian Arctic shelf monopoly prevailing  |  Barents Observer

Lukoil pushes for access to shelf  |  Barents Observer


What do you think about Russia’s managing on the Arctic shelf? Should it let private companies operate in the area?


Photo by Gazprom.ru


Polish shales delayed?

26 December, 2012 News No comments
Polish shales delayed?

I am sure everyone has heard about Polish shale gas boom. It happened about two years ago, but something has changed since that time. The results from the wells are not as optimistic as in the American predictions, even though there have not been drilled many. Also politicians are responsible for ‘shale-disappointment’, they have not prepared the proper law for shale gas yet.

Mr Carsten Freyer, Business Development Manager for KCA Deutag in Europe and East Africa was ‘questioned’ about the situation in Poland. He said: ‘…It was totally different two years ago when everyone was so enthusiastic about Poland and we got calls from operators to move into the country, which we did, but today the picture has changed totally, so it’s questionable whether the rig demand and the commitment from operating companies is there to secure a long term business for reputable international service providers.’

The whole article you can find on:
Auf Wiedersehen Poland? | NATURAL GAS EUROPE

What do you think about these changes? What is the main factor of changing the companies’ policy about Poland?

Photo by worldresourcesinstitute (flickr.com)

If I Were a Prime Minister…

19 December, 2012 News No comments
If I Were a Prime Minister…

Have you heard, that UK government is going to abolish, ban of shale gas fracking? Ban of exploratory fracking in the UK has been introduced after two small seismic tremors, reported in May 2011. According to The Royal Academy of Engineering report there is no connection between hydraulic fracturing and those seismic activities. You can find a whole report here.

UK Energy and Climate Change Secretary, Ed Davey highlighted, that resuming that process will be connected with new controls aimed in reducing risks of seismic activity. Shale gas in UK is a promising potential energy resource for UK. It could reduce United Kingdom reliance on imported gas. But advantages related with shale gas production couldn’t overshadow environmental and safety issues.

UK Lifts Shale Gas Fracking Ban | RIGZONE

So, if you could decide about direction of energy policy in UK, what would be your approach to unconventional reserves? Share your ideas with us!

Photo by Travel Aficionado (flickr.com)

People, Engineers and SPE Members

People, Engineers and SPE Members

People, this is what we engineers and SPE Members do not take care enough. We are people first, then engineers, then SPE Members. People come always first.

 I have attended and participated to the Offshore Technology Conference of Houston, Texas, for the last 20 years. Each and every year there are panel discussions, presentations of hundreds of papers and also multiple poster sessions from service companies and contractors. They all discuss, report and comment on techniques, methods, budgets and projects but also on all kinds of problems such as delays in completion (of wells, of projects, etc.), repair times, failures of equipment (not seldom enough reported), stand-bye times. What is behind all this ? People.

 Houstonis full of engineering “think tanks”. The buildings of such engineering companies as Technip, Worley Parsons, Brown and Root, Coots, Mustang and Sercel for instance are as big as the buildings of Conoco-Phillips, BP,Devonor BP. What is populating these buildings ? People.

There are as many engineers in consulting companies such as Gaffney and Cline, Knowledge Reservoir and DeGolyer and MacNaughton as in  the Operators offices. What is populating these companies ? People.

 Yes, I heavily insist on people. Our education, then our working life, do not recognize enough that we are dealing with people before than dealing with engineers and with SPE Members. We as people we have our family background, our environment, our education, and then later on we have our family life – husband or wife, and kids. All this create and induce satisfaction and dissatisfaction, pleasures and pains, happiness and madness. Whatever our professionalism, all this directly impacts our work as engineers and our behavior as SPE Members. If we have problems at home we cannot concentrate on our work, and if our Wife or Husband needs us at home we cannot be a good volunteer for SPE.

 I am personally pushing for an extended spread of integrated multidisciplinary project management teams. But if one does not like any other member of this team the project will then most likely go wrong as the individual thinking’s will not integrate. This was most likely situation that was at the origin of the Macondo catastrophe.

 We learn a lot at school then at university, but we do not learn how to work with people, how to understand our co-workers. This is not a matter of psychoanalyze (!…) , but just a matter of care. We must care for people and show it. Then the work, the project, will be enjoyable and most likely successful.

 When you compete with other students in the course of paper contests,  then later on with your co-workers for obtaining a promotion, or with other SPE Members for getting an award, please be fair, please care for your competitors. The competition will then be fun and the winner will deserve the glory and your faithful support.

 Care, and people will give you more in return than you can ever dream.


Serge Rueff, Ph.D,

Member of the Board of Directors of the Society of Petroleum Engineers International

Regional Director of South, Central and East Europe