<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>
 

Obtain a new equipment

Obtain a new equipment

There was a time, and not so long ago when a small oil companies in southern Texas had to send their employees for hundreds of kilometers to do a tour of the oil fields and check whether the machines are working properly. To notice a fault, it took a day or more and to fix it it could last a week or so. You can only imagine losses for the company then. Fortunately, we have 2016 and companies like Welder Exploration & Production don’t have to worry anymore about not knowing about what is state of their devices.

 

Today, it takes just seconds for Welder to learn that one of his company’s wells has gone down. That’s because in 2013, Welder Exploration became one of the first oil producers to sign on with WellAware, a tech startup that kits out clients’ oil and gas wells with hardware that transmits real-time data over its own radio network. Clients can access the information on a smartphone or tablet using WellAware’s mobile app or through a Web browser. Customers pay $15 to $100 a month per well, depending on the level of service and equipment.

Without a doubt U.S is highly advanced in drilling technology, this was the basis of the shale boom. However much of the oil industry lags far behind when it comes to technology above-ground. Now, when the industry is more focused on cost-cutting and optimization of production in existing deposits than search for new, digitizing operations has become much more appealing.

Dave Milam, head of product management at WellAware, says that the beginnings were not easy: “People used to tell me, ‘If you can’t help us find more oil and drill faster, I don’t have time to talk to you,’ ”. WellAware was founded 2012 and has raised $61 million in venture capital and counts billionaire Carlos Slim as an investor. The privately held company doesn’t report financial results, but Milam says its roster of customers has grown tenfold in the past year.

In a report released in March, McKinsey estimates that each of the world’s oil majors could reap $1 billion in cost savings and production increases from the adoption of digital technologies. In California, Chevron is using the latest technologies like drones, which are popular in Oil and Gas industry according to what we reported a few months ago.

Technological advances now allow for a very large savings in the industry and more accurate data collection with instant collecting them and sending for analysis. According to the speech of Ahmed Hashmi, global head of upstream technology at BP, the company has plowed “several hundred million dollars” into digital field technologies, which now cover about 85 percent of its oil and gas production around the world, compared with just 20 percent five years ago. “Digital is the rare technology that allows us to do more with less,” he said.

Despite the many advantages of technological advances in the industry are still many traditionalists attached to the old, proven technologies. To convince them to new solutions companies such as Bluetick, a North Carolina company that offers remote monitoring and automation services for oil and gas companies, shows how much save their competitors and that convince them.

source Bloomberg

Shortly about Baltic Pipe

Shortly about Baltic Pipe

Obviously, Baltic Pipe is a clear response to Nord Stream 2, which directly connects Russian Federation with Western Europe. Experts claim that Nord Stream 2 through Germany could even get to Austria, Czech Republic and Italy. This menace has not been taken well by Central Europe, including Poland, Slovakia and Hungary.

Gazprom informed that pipes delivery tender is already settled. Fortunately, there is no construction permit and European Comission is not currently willing to accept these plans. Thus, it is a chance for Baltic Pipe project to brighten this situation up.

Simply, the idea is to build a pipeline between Swinoujscie Port (Poland) and Kopenhagen and then match it with another pipeline that goes to Norway. Polish Oil and Gas Company (PGNIG) own concession to extract norwegian gas there. That could be another factor for polish diversification of resources.

The tricky part is that half of a costs would be covered by European Union as a part of Connecting Europe Facility programme. Gaz System (Poland) and Energinet (Denmark) are supposed to be operators responsible for expanding the network transmission. Feasibility study will be estimated by the end of the year.

Sources:

http://natemat.pl/

 

South Africa: Shale gas as an opportunity for economic growth.

South Africa: Shale gas as an opportunity for economic growth.

The full spectrum of new and emerging technologies connected with the unconventional sources of energy give consecutive countries an opportunity to supply their domestic budget. For instance the Republic of South Africa is a state whose government gives the green light to companies looking to explore for shale gas under the semi-desert Karoo basin. Up to now five companies have applied for exploration permission. Among them are Royal Dutch Shell, Falcon Oil & Gas and Bundu Gas & Oil. Most probably, first explorations will have been started by the end of next year.

 “One area of real opportunity for South Africa is the exploration of shale gas”. said South Africa’s finance ministry (Mar 8, 2016). “Exploration activities are scheduled to commence in the next financial year. This will lead to excellent prospects of beneficiation and add value to our mineral wealth”

It is believed that deposit contains around 390 trillion cubic feet of technically recoverable gas reserves. Shell analysts predict that 50 trillion cubic feet can provide about $20 billion to the South Africa economy every year for 25 years.

Furthermore, additional source of financing will stimulate employment market and ensure about 700,000 jobs. Nevertheless, opponents claim that hydraulic fracturing will make an impact on environmental stability and expansion of pollution.

Sources:

www.reuters.com

www.colourbox.com

Disrupting ISIS oil network after attacks

Disrupting ISIS oil network after attacks

After the Paris attacks last November, today dozens of innocent people have lost their lives in Brussels; more than 200 are wounded. The city is in pain and mourning and the mass media keep on informing about disrupting ISIS oil network.

The U.S. military is urged to find ways to disrupt the oil production that helps fund the insurgent group ISIS. “In an age where energy is a precious commodity, their energy production not only funds crimes against humanity, but it also forms the means by which would-be ‘states’ like ISIS survive,” Olson (U.S. Rep.) said in a statement. “We must take every measure to cut off ISIS funding at the source.”

In December, the Los Angeles Times reported ISIS now controls approximately two-thirds of oil production in Syria, which analysts estimated at around 35,000 barrels a day. At current market prices, ISIS’s share of that oil is worth more than $900,000 a day.

Well, it’s all great. However, wouldn’t be much more essential to close european borders to refugees or simply and more effectively change immigration policy in order to avoid such situations? Unfortunately, we’re overwhelmed with political correctness and european politicians are willing to accept the immigrants culturally enriching society.

Sources:

www.theguardian.com

www.fuelflix.com

North Sea Oil and Gas Industry during the global crisis of low raw materials prices

North Sea Oil and Gas Industry during the global crisis of low raw materials prices

Low oil and gas prices mean a difficult time for the entire industry. North Sea Oil and Gas Industry must find a way to survive the crisis, because the current costs are too high. Analysts say that even 146 oil platforms in the waters of the UK may be scrapped over the next decade.

The solution may be to embrace a new marketplace. Some oil companies are investing in the military industry, creating military equipment for example thermal imaging cameras detecting pipelines.

However, the main objective is to reduce costs and increase efficiency . Some commentators argue that the oil industry does not use its potential , eg. computer hardware and the only way to solve this problem is to restructure .

Another solution sees Mr Ewing, president of Industry Leadership Group (ILG): “While it is clear that the oil and gas industry faces severe challenges from a low global oil price, there are still opportunities that Scotland can capture from new discoveries and through our world-class supply chain.”

Many experts and industry analysts wondering how to solve the current problems associated with the low raw materials prices. There are many ideas that are supported by the government of the UK. The companies bring new technologies into new markets. Let’s hope that these actions will help to survive the crisis.

COULD UK SHOW OFF THE LARGEST OFFSHORE WIND FARM SOON?

COULD UK SHOW OFF THE LARGEST OFFSHORE WIND FARM SOON?

    Positive Final Investment Decision for Hornsea One offshore wind farm off the coast of Grimsby in Nothern England was confirmed early February by DONG Energy. That means construction can now go ahead. It will be located 75 miles off the Yorkshire coast and will be capable of powering over 1 million UK homes with a capacity of 1.2 gigawatts. There haven’t been as huge this type undertaking before. The wind farm is going to has the potential to create around 2000 jobs during its construction, with up to 300 additional jobs supported throughout its 20-25 year operational phase. Hornsea One is expected to be fully operational in 2020. Energy Secretary Amber Rudd said: “Dong Energy’s investment shows that we are open for business and is a vote of confidence in the UK and in our plan to tackle the legacy of under-investment and build an energy infrastructure fit for the 21st century. [….] This project means secure, clean energy for the country, jobs and financial security for working people and their families, and more skills and growth boosting the Northern Powerhouse.”

Hornsea-FID-map

sources: hornseaprojectone.co.ukgov.uk

South Korea: A new chapter in the economic relations with Iran.

South Korea: A new chapter in the economic relations with Iran.

The lifting of nuclear-related sanctions on Iran allows this country to tighten international economic relations, especially with Asian countries. South Korea wants to increase imports of Iranian oil, mostly condensate, in order to overcome growing internal demand and ensure better conditions (lower prices) in comparison to Qatars’ one.

 “We will increase oil and natural gas (liquids) imports from Iran, especially Iranian condensate,” said South Korea’s trade and energy ministry (Mar 1, 2016).

Currently, South Korea is one of the largest importer of crude and a big buyer of condensate. Their industry uses a super light oil for production of fuels and petrochemicals. Iran is providing about 100, 000 barrels of oil a day to South Korea and executives predict to double that amount by the end of 2016.

Both countries plan to establish efficient payment systems to simplify trade of crude and condensate. Contract will be concluded between National Iranian Oil Company and South Korea’s SK Energy.

A new partnership in the economic relations among Iran and South Korea is essential for them. Financial contracts may generate workplaces, accelerate development of the chemical sector and additionally wipe out bad appearance of Iran as isolated and fundamentalist state.

Sources:

http://www.reuters.com/article/us-southkorea-iran-oil-idUSKCN0W40P8

http://www.windows10update.com/wp-content/uploads/2015/10/flag_south_korea.jpg

Crisis goes on

Crisis goes on

Crisis in oil and gas industry goes on and thus energy firms keep on downsizing production instead of investing in drilling new wells. Interestingly, it is 10th week in a row when U.S. producers cut oil rigs. Drillers from Baker Hughes removed 13 rigs in the week ended Feb. 26, bringing the total rig count down to 400. That compares with 986 oil rigs operating in same week a year ago.

Eagle Ford might be another example of negative low crude price influence on making profit. So far this year, drillers have sidelined 29 rigs. Oil production from U.S. shale fields, including the Eagle Ford, is expected to keep dropping this year, which should take some pressure off of storage.

Sometimes downsizing production is not enough and cutting jobs is essential to survive on the market. Halliburton is about to lay off another 5000 workers which equals about 8 percent of its workforce.

Well, it is just business… Owners of oil companies are forced to make hard decisions in order to avoid a collapse. But surely this will not last forever when production is unprofitable for many.

Sources:

http://www.rigzone.com/news/oil_gas/a/143259/Baker_Hughes_US_Oil_Drillers_Cut_Rigs_For_10th_Week_In_A_Row

http://fuelfix.com/blog/2016/02/26/eagle-ford-rig-count-down-70-percent-in-the-last-year/

http://fuelfix.com/blog/2016/02/25/halliburton-cutting-5000-more-jobs-worldwide/#36089101=12

Oil prices will rally according to IEA report

22 February, 2016 News No comments
Oil prices will rally according to IEA report

Though trying to predict oil prices is said to be a fools game it is very hard to stay away from questioning. Especially because this market is volatile and the political situation is the main determinant. After watching prices crash through floor after floor in the worst slump for a generation, the industry is eager for answers and it gets it- the IEA predicts that global oil supply and demand to rebalance in coming years.

International Energy Agency is at the heart of global dialogue on energy, providing authoritative statistics and analysis. In its annual report, which was released today, says that the market will begin rebalancing in 2017 – and by 2021 the United States and Iran are seen leading production gains among non-OPEC and OPEC countries, respectively. This view is predicated on the expectation that U.S. shale oil production drops 600,000 bpd this year, and by 200,000 bpd in 2017. The IEA projects that global oversupply will be wiped out by 2018. Once the market will start to rebalance, prices will rise also, the availability of easy resources will rally. Thanks to efficiency gains IEA speculates growth of production by 1.2 million bpd in U.S. and global oil supply to rise by 4.1 million bpd from 2015-2021.

According to energy market long-term speculations are the most suitable. So far, shale bankruptcies have been limited to smaller outfits, the one thing the stress on companies hasn’t done is destroy production. Meanwhile, on the international scene, the Saudi-Russian accord announced Tuesday, to which Venezuela and Qatar have also signed up, would cap production at January’s levels.

See more: www.iea.org; www.bloomberg.com, www.oilprice.com

First marine LNG fueling terminal in North America opened

15 February, 2016 News No comments
First marine LNG fueling terminal in North America opened

Some time ago we wrote about LNG Terminal in Swinoujscie, Poland (see). Today we come along with theme related news. First marine liquefied natural gas fueling terminal in North America is now opened. The operator of this undertaking is Harvey Gulf International Marine, New Orleans. They inaugurated the LNG terminal at its operating base in Port Fourchon, Louisiana.

The bunkering included the transfer of 43,000 gallons of LNG in about 2.25 hours, the company said. The terminal is able to deliver LNG at a pumping rate of 550 gmp, total on-site storage is approximately 270 000 gals., contained in three 90 000 gals. USG type “C” vacuum insulated tanks. According to Shane Guidry, Chairman and CEO of Harvey Gulf, it should help with promoting the use of LNG as a clean, abundant, and cost-effective alternative marine fuel. Also it provides a LNG bunkering point at the epicenter of marine operations for the Gulf of Mexico, which is vital to continuing the shift to LNG as a marine fuel. Chad Verret, executive vice president in charge of Harvey Gulf’s Alaska and LNG operations, says easier maintenance, longer intervals between overhauls, and cleaner engines and boats were all part of the company’s decision to commit to building an LNG-fueled fleet – along with the promise of long-term lower fuel costs with gas.

Will be LNG only or predominant marine fuel someday? Time will tell whether yes or no. But opening first marine liquefied natural gas fueling terminal in North America was definitely worth to mention.

Source: workboat.com

Image source: oilonline.com