Study quantifies benefits to E&P of technology

A study carried out by Smith Rea Energy Associates Ltd., Canterbury, UK, and AEA Technology PLC, Didcot, UK, on behalf of the European Union was said by SREA to shows the benefits of technology in extending oil and gas reserves.

Announcing the study in Brussels the partners said that among the key findings about the impact of technological innovation on reserves growth were that the application of innovative technologies was responsible for reserves gains on the Northwest European continental shelf of about 12.4 billion barrels of oil equivalent (boe) over the period 1990-97.

SREA attributed 75% of the gains to innovations in three key areas - drilling, seismic survey techniques, and floating/subsea production, in order of importance - and said that the gains resulted mainly from the "enabling" of new fields.

The analyst said that the gains were accompanied by marked improvements in health, safety and environmental (HSE) protection; also EU technology support programs proved to be of particular value to small to medium sized enterprises by helping them to innovate and export in the face of fierce international competition.

"The potential for future reserves gains," said SREA, "could be as much as an additional 19 billion boe, accompanied by further improvements in HSE protection.

"EU technology support programs have made a significant contribution to both reserves gains - estimated at more than 1.3 billion boe in the period - and HSE improvements, and should continue to do so."

New projects and contracts

BP Amoco PLC was awarded a second deep water exploration license offshore Brazil; the tract is about 300 km offshore and has water up to 2,000 m deep.

The BFZ-2 license covers 25,000 sq km of the Foz do Amazonas basin off Northern Brazil. The operator intends to begin exploration activity when contracts are approved by the Brazilian National Petroleum Agency, anticipated within 2 months.

The license was awarded under a joint venture agreement, with interest holders being: operator BP Amoco 35%; Brazilian state petroleum company Petroleo Brasiliero SA (Petrobras) 30%; Exxon Mobil Corp. 20%; and Elf Aquitaine SA 15%.

BP Amoco also let a 5-year contract worth more than 500 million kroner ($62.5 million) to Aker Maritime AS, Oslo. for maintenance and modification work on all BP Amoco's platforms offshore Norway.

The contract will cover work on the Ula, Gyda, Valhall, and Hod platforms, and will be aimed at extending the working lives of the platforms by improving operating economics.

Turkey's Petkim Petrokimya AS let a basic engineering contract to Stone & Webster Ltd., Milton Keynes, UK, for expansion of an ethylene plant at Aliaga, Turkey.

Stone & Webster said the expansion of plant capacity by 120,000 tonnes/year will include the addition of a new cracking furnace based on proprietary technology and the installation of the contractor's low pressure wet oxidation process for treatment of the plant's caustic effluent.

Project focus: London's IPE gears up for electricity trading

London's International Petroleum Exchange announced in early December that important steps had been taken in drawing up futures and physical contract specifications for the markets that will exist under the new electricity trading arrangements (NETA) due to begin in October 2000.

The IPE plans to launch futures contracts for electricity in the second quarter of next year. The new markets were discussed at an industry working group organized by the IPE. The exchange said the meeting was well attended by a cross section of the industry, with approximately 30 individuals from 20 companies taking part.

"There was much support," said the IPE, "for the concept of contracts on the day and up to a year ahead, with the possibility of longer dated contracts at a later stage.

"The strong view was that these markets should be launched as soon as possible, to give the industry the opportunity to manage the transition to NETA and gain experience of the systems and products that will be available."

Among issues raised by the working group, and which would require further consultation and research, the IPE cited the potential for introducing cash settled contracts before NETA is launched. The IPE agreed to take these issues forward and call another industry meeting early in the new year.

Nick Aldridge, head of product development and research at the IPE said, "It was good to see such a well attended meeting with so much support for electricity contracts. We feel that the industry itself is in the best position to define its own needs and our approach at the IPE is to facilitate this process rather than to impose a contract specification on market participants. It is clear that there is more work to do, but we made real progress in defining the opportunities, problems and issues at stake".

The IPE, which handles the bulk of the world's Brent crude oil futures trading and is Europe's key petroleum trading center, announced its attention to launch electricity contracts for the new trading arrangements in May 1997 and has worked closely with the industry subsequently to identify and meet its requirements.

The UK Natural Gas futures contract was launched by the IPE in January 1997. Many companies involved in the electricity sector are already using this as a risk management tool. Once the IPE launches electricity contracts, companies may be able to offset their exposure across the two different markets and reduce their transaction costs accordingly.

In September this year the IPE and management consultant PricewaterhouseCoopers held a 2-day simulation of the markets that could exist under NETA. This event was attended by 10 leading power companies, which were able to test how the over-the-counter and exchange traded markets could operate under the new trading arrangements.

The IPE is a participant in the Libra consortium which is one of the three short-listed companies bidding to provide services for NETA. Libra also includes PricewaterhouseCoopers, ABB Energy Information Systems and Energy Settlements and Information Systems.

Related Articles

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Second ExxonMobil crude tanker nears service

01/12/2015 The second of two new US-flagged crude oil tankers belonging to SeaRiver Maritime Inc., the marine affiliate of ExxonMobil Corp., has been built an...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/15/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/10/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

Firms' third-quarter earnings climbed amid lower crude oil prices

12/08/2014 A sample of 58 oil and gas producers and refiners based in the US recorded a combined 38% jump in profits for this year's third quarter compared wi...

Chapman to succeed Pryor as ExxonMobil Chemical president

11/24/2014 Neil A. Chapman is expected to assume the roles of president of ExxonMobil Chemical Co. and vice-president of ExxonMobil Corp. following the retire...

Induced seismicity research effort identifies information gaps

11/10/2014 A federally coordinated effort to determine whether oil and gas activities are related to growing reports of induced seismic activity has identifie...

ExxonMobil, Linn to make second asset exchange this year

10/06/2014 ExxonMobil Corp. has agreed to trade interest in 500 net acres from South Belridge field near Bakersfield, Calif., to Linn Energy LLC, Houston, in ...

ExxonMobil 'winds down' Arctic well, obeys sanctions

09/29/2014 ExxonMobil Corp. released a statement that it is complying with all US sanctions on Russia after news reports that the operator had halted operatio...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts

The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.


On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected