<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>

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

Shell – the LNG King

Shell – the LNG King

Although it is enormously hard nowadays to acquire operating L.N.G. installations, Royal Dutch Shell recently made lucrative deal with Repsol which puts its assets ahead of Western L.N.G. competitors. The $6 billion deal will amount approximately 30 percent of Shell’s L.N.G. supplies (up to 6.6 million tons of gas) and increase its influence in Canada, Caribbean and South America.

This concludes decreasing Repsol’s financial burden with more than $4 billion in cash and $2 billion in assumed debt, which is crucial for Spaniards after nationalisation of YPF by Argentinian government.

Shell states deal would allow them to add $1 billion net income annually. “Shell’s worldwide L.N.G. supply position and customer base means we are uniquely positioned to add value to Repsol’s L.N.G. portfolio” Peter Voser, Shell’s chief executive, said in a statement.

More information at:

Image: Canaport LNG

PKN ORLEN begins drilling of new well in the Lublin region

PKN ORLEN begins drilling of new well in the Lublin region

The new well of PKN Orlen is located in Nowy Stręczyn in the Cyców commune.

Stręczyn-OU1 is the fifth well to be drilled by PKN ORLEN in the Province of Lublin, and the third covered by the “Wierzbica” exploration licence. The drilling of the well is expected to take approximately 45 days and planned depth  is over 3,400 metres. Engineers from company going to collect 300 meters of core samples.

“The results of our preliminary geological surveys proved very promising, and so we decided to start a new exploratory well here,” commented Wiesław Prugar, CEO of ORLEN Upstream.

PKN ORLEN begins drilling of new well in the Lublin region  |ORLEN


What do you think about shale gas exploration in Poland? Share your opinion with us.


Photo from Orlen Upstream archive.

New surprising analysis of fracking wastewater

11 February, 2013 News No comments
New surprising analysis of fracking wastewater

Since the beginning hydraulic fracturing is a very controversial matter, having as many opponents as supporters. Main arguments of adversaries are that components of fracking fluid may cause adverse environmental effect and that fracking would disturb natural water equilibrium in the region, because of large amounts of water that are used in the process. New analysis made by researchers at Duke and Kent State Universities shed new light on the matter.

It occurs that hydraulically fractured natural gas wells of Marcellus shale region produce less wastewater per unit of gas recovered than conventional wells would. Actually, shale gas wells produce 10 times more wastewater than conventional wells, but they also produce about 30 times more natural gas. So if Marcellus was a conventional well, the total amount of wastewater from gas production in the region would increase by about 1710% since 2004, not by 570% as it is now.

Another surprising fact shown by the analysis is that only a third of the wastewater from Marcellus is flowback from hydraulic fracturing. Most of it is classified as brine, which is produced also while conventional well exploitation.

The analysis is very important for inhabitants of countries, which plan to exploit shale gas wells and have to face up to discussions concerning hydraulic fracturing.

Analysis of Fracking Wastewater Yields Some Surprises | ScienceDaily

What do you think about results of the analysis? May it refute the theory of fracking’s harmfulness?



sciencedaily.com; Łukasz Ostalski (biznes.interia.eu)

Powerful explosion in the headquarters of Pemex

2 February, 2013 News No comments
Powerful explosion in the headquarters of Pemex

Dramatic accident in Mexico City. In Thursday’s afternoon huge explosion rocked a skyscraper of state oil giant – Pemex. Casualties are high – over 30 fatalities and about 100 injured – reported Miguel Angel Osorio Chong, Interior Minister of Mexico.

The explosion has damaged the ground, first and the second floor of this 214 meter high building. Many people got poisoned by smoke and many panes were broken.
“A really strong explosion and then the glass started raining down,” one of employees said. “There were lots of screams.”
The reasons of the explosion are still unexplained. It could be an explosion of a gas boiler in the near building of Pemex but the investigation is still in progress.

Petróleos Mexicanos (Pemex) has a total asset worth of $415.75 billion and is the world’s fourth largest petroleum concern. It mines about 2,5 million barrels of crude oil every day.

For more information switch to:
Death toll climbs to 32 in blast at Mexico’s Pemex headquarters | LOS ANGELES TIMES

Photo: www.latimes.com


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)