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Journal of Petroleum Technology December 2023

Journal of Petroleum Technology December 2023
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100% found this document useful (1 vote)
396 views102 pages

Journal of Petroleum Technology December 2023

Journal of Petroleum Technology December 2023
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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industry trends and knowledge-sharing and development
technical information opportunities programs
Contents
4 
President’s Column With Terry Palisch—
Volume 75 | Number 12

Creating Our Energy Future


In this episode and transcript, Terry Palisch is joined by Simeon Eburi, an
SPE Regional Director of North America, to discuss connecting members
to technology and each other, and the importance of local sections.
This transcript is an excerpt from the podcast episode.

12 
GUEST EDITORIAL • The Engineer of the Future
Data and AI will change our industry for the better. At the root of this
change will be the empowerment of engineers to make better decisions.

18 
More Students Going Into Petroleum Engineering
Programs as Research Work Tilts to Alternative Energy
More freshmen are enrolling in petroleum engineering, drawn by strong
demand for graduates.

24 
Maintaining Petroleum Engineering Education On the cover: Apache saw a 10%
To Support the Energy Mix of the Future year‑over-year reduction in drilling costs
A survey of SPE members associated with a university, or their job/role to using its AI-based drilling advisory system
for 1,700 wells across a wide spectrum
be faculty, collected information about the effect of the energy transition
of geologies. Source: Grand River and
on recruiting students, strategic directions in academic programs, and Klerik 78: istock/Getty Images.
maintaining a relevant curriculum for future careers.

32 
AI, Influencers, and Grit: How Apache’s 8-Year Quest
To Build Its Own Drilling Advisor Achieved Full Adoption DEPARTMENTS
Few oil and gas companies give data science projects the better part
of a decade to prove out, but that’s just what this one did. 10 Comments
15 E&P Notes
38 
Common Ground: The Unique Synergy Between
the Oil Field and Aerospace 97 SPE Technical Papers
One is on Earth and one is not, but the knowledge transfer between Available
the oil patch and off world has fueled meaningful technological advances 98 SPE News
for all involved. 100 SPE Events
44 
‘Fragile Equilibrium’: Balancing LNG Trade
and Market Risks
Players are making big bets in the thriving yet fragile global LNG market
with record global trade expected to grow another 25% in the next 5 years.

An Official Publication of the Society of Petroleum Engineers. Published in US. Copyright 2023, Society of Petroleum Engineers.
Recent Content from
SPE Journal

Technology Focus
To view these papers, go to
OnePetro, www.onepetro.org,
and search by title or paper
number or navigate to the journal.
Data Science and The complete SPE technical papers featured in this issue are available
Engineering Analytics free to SPE members for 2 months at jpt.spe.org.
SPE-217970-PA—Prediction of
the Maximum Horizontal Principal
Stress from Breakout Data Using 49 RESERVES MANAGEMENT
Generative Adversarial Networks and David Gurney, SPE, Kuwait Foreign Petroleum Exploration Company
Backpropagation Neural Network
SPE-217985-PA—Reservoir Production 51 
Reliable Technologies Combine To Establish Reasonable Certainty
Management With Bayesian for Reserves Estimates
Optimization: Achieving Robust
Results in a Fraction of the Time 56 Alternative Business Model of CCS Projects Unlocks High-CO2 Fields
Formation Evaluation 60 Stochastic Economic Ranking Addresses Risk and Uncertainty
for Decision-Makers
SPE-212204-PA—Guided Deep
Learning Manifold Linearization of
Porous Media Flow Equations 64 PRODUCTION AND FACILITIES
SPE-209420-PA—Predictive Model for Débora Salomon Marques, SPE, Dow Industrial Solutions
Relative Permeability Using Physically-
Constrained Artificial Neural Networks 66 
Modular Refineries Offer Advantages for Product Availability
in Nigeria
Reservoir Engineering
SPE-217996-PA—Pore-Scale 69 Abandoned Wells Can Provide Use for Pulverized
Characterization of CO2 Trapping and Wind-Turbine Blades
Oil Displacement in Three-Phase Flow
in a Heterogeneous Layered Sandstone 72 Study Outlines Steps for Dewatering, Transport, and Disposal
of Produced Solids
SPE-212180-PA—Performance
Benchmarking of Different
Methods to Solve Gauss-Newton 75 BITS AND BOTTOMHOLE ASSEMBLIES
Trust Region Subproblems Martin Hayes, SPE, Dragon Oil
Drilling and Completion 77 
Improvement Plan Using Fatigue Analysis Minimizes Jar Twistoff
SPE-217987-PA—Experimental Study
on Dynamic Barite Sag and Effects 80 Autodrillers, Rig-Control Systems, Driller Procedures Reduce
of Inclination and Pipe Rotation BHA Failures
SPE-218003-PA—Quantification of
Casing Expansion-Induced Cracking
83 Laboratory Experiments Qualify Bit Influence on High-Frequency
in Oilwell Cement Sheaths
Torsional Oscillations

Production and Operations


86 WATER MANAGEMENT
SPE-217981-PA—Fabrication
Swamy Margan, SPE, Halliburton
and Release Mechanism Study
of a Nanocapsule Breaker for 88 
Produced-Water Desalination Approach Uses Renewable
Controlling Degradation Rate of Thermal Energy
Insoluble Residue in Slickwater at
Moderate-Temperature Reservoirs 91 Emulsion System With Nanoparticles Suitable for High-Temperature,
SPE-218009-PA—How Anions High-Salinity Reservoirs
and Cations Impact the Viscosity
and Viscoelasticity of High- 94 Nanomembrane Approach Reuses Waste, Cleans Produced Water
Viscosity Friction Reducers

Sustainability and
Energy Transition
SPE-217990-PA—Pore-Scale
Simulation of Fracture Propagation by
CO2 Flow Induced in Deep Shale Based
on Hydro-Mechanical Coupled Model JOURNAL OF PETROLEUM TECH­NOLOGY ( JPT) (ISSN 0149-2136) is published monthly by the
Society of Petroleum Engineers, 222 Palisades Creek Drive, Richardson, TX 75080 USA.
SPE-217989-PA—Annuli Liquid-Level
Surveillance Using Distributed Fiber- To contact Customer Service, call 1.972.952.9393 or service@spe.org, or Update Your Profile
Optic Sensing Data (Open Access) at https://www.spe.org/members/.
SPE BOARD OF DIRECTORS

2024 President 2023 President


Terry Palisch Medhat M. Kamal
CARBO Ceramics Chevron Fellow Emeritus

2025 President Secretary


Olivier Houzé Simon Seaton, Society
KAPPA of Petroleum Engineers

REGIONAL DIRECTORS
AFRICA MIDDLE EAST AND NORTH AFRICA
Oghogho Effiom, Shell Nigeria Mohamed Al Marzouqi, ADNOC
Hisham Zubari, Dragon Oil
ASIA PACIFIC
Henricus Herwin, Pertamina NORTH AMERICA
Hazli Sham Kassim, Petronas Simeon Eburi, Chevron
Robert Martinez, Chimney Rock Energy
EUROPE Kim Oracheski, Strathcona Resource
Pierre Emmanuel D’Huart, Saipem
RUSSIA AND THE CASPIAN
LATIN AMERICA AND THE CARIBBEAN Alexey Borisenko, Schlumberger
Carlos Alberto Petroso, Enauta

TECHNICAL DIRECTORS
COMPLETIONS DATA SCIENCE & ENGINEERING ANALYTICS
Karen Olson, Olson Turner Enterprises Sushma Bahn, Ikon Science

DRILLING PRODUCTION AND FACILITIES


Robin Macmillan Hamad Al-Marri, Saudi Aramco

HSE AND SUSTAINABILITY RESERVOIR


Sue Staley, vPSI Group, LLC Rodolfo Camacho, UNAM

JPT STAFF
Dana Otillio, VP Communications and Publisher Stephen Rassenfoss, Emerging Technology
Pam Boschee, Director, Magazines Senior Editor
Chris Carpenter, Technology Editor Pat Davis Szymczak, Contributing Editor
Megan Couch, Content Manager/Editor Adam Wilson, Special Publications Editor
Trent Jacobs, JPT Senior Technology Editor Blake Wright, Technology Editor
Jennifer Presley, Senior Technology Editor Laurie Sailsbury, Digital Publishing Specialist

The Journal of Petroleum Technology ® magazine is a registered trademark of SPE.


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In this episode and transcript, Terry Palisch is joined by Simeon Eburi, an SPE Regional Director of
North America, to discuss connecting members to technology and each other, and the importance
of local sections. This transcript is an excerpt from the podcast episode. Listen to the full episode here.

I’m Simeon Eburi, an SPE local section or student chapter because I


Regional Director of North think the local sections can impact not only their
America and reservoir education and career but also their energy future.
management advisor with
Chevron. I’m pleased to join I agree with you Terry, sections are the front
SPE President Terry Palisch lines. I was very involved with my local section
to talk about the benefit of in Houston before I was a regional director on
joining and being involved with your the SPE Board of Directors. For people who do
local SPE section. Thank you for inviting me to not know about SPE sections, let’s start there.
join you. As a regional director, I’m passionate What are sections and what do they do?
about the sections and the work they do, as I Let’s start with statistics. We have over 200 sections
know you are, Terry. worldwide located in 85 countries, so wherever you
Thank you, Simeon, for joining me today and being are there should be a section near you. The first
part of the episode. I asked you to join because section was the Mid-Continent Section in Tulsa in
I know your passion and your experience with 1917 over 100 years ago; it was established before
the Gulf Coast Section, and my goal today is to SPE was incorporated. The first international
ensure our members recognize how being active section was about 40 years later, the Western
in their local section can help their professional Venezuela Section in Maracaibo. One of the most
development. I thought you would be the recent sections is the Ukraine Section in Kiev
perfect host. established in 2022.
I believe that when most people, both members We continue to add sections and at times
and external, think about SPE they typically think reinstate sections that may have fallen behind.
about the local section. That is what most are This year we reinstated the Libya Section and the
exposed to, so I consider the local section the Tunisia Section. Our sections are wide-ranging in
front lines of our Society, the key to SPE’s mission size. The two largest sections are the Kingdom of
of connecting. I want to focus our members on Saudi Arabia and the Gulf Coast Section with well
how they can benefit by connecting with their over 8,000 members. What is interesting is that

4 JPT | December 2023


In conjunction with the SPE International Board’s October meeting, Devon Energy graciously hosted the board on a tour
of their Eagle Ford operations, including a visit to a frac site.

the average SPE section size is over 300 and the It is not too difficult. We encourage members
median is under 150 which means we have a lot of in areas that are not being served by a local
sections that are smaller than 150 members, which section to create a section. It takes a minimum
illustrates the idea of the sections being grassroots. of 25 professional members who reside in the
Each section operates independently and somewhat geographic area to create a local section. They
autonomously; they are local in their local area. Each need a minimum of five board members including
is unique in that they respond to the needs of their the chairperson, program chair, a membership
members, providing technical exchange, networking chair, secretary, and treasurer.
opportunities, and engaging with the community.
They really are the face of SPE at the local level. Staying on the topic of sections, I heard you
say that you visited quite a few sections and
Thank you, Terry, for sharing these statistics chapters around the world and that is one of
about the global sections. I can see where the your favorite things to do as president. Can you
sections covering the globe are important for expand on that? Where have you been and why
SPE’s mission. How are new sections created are they the heart of the mission of SPE?
or established? Can anyone create a section I will take your second question first. I believe
around the world? strongly that the section enables us to fulfill our

jpt.spe.org 5
While attending the SPE Eastern Regional Meeting in West Virginia, Terry helped celebrate the awards winners from
the region.

mission of connecting our members. Our mission and student chapters. I get to meet the members
can be stated very simply as connecting our who are in the trenches that are working hard for
members to technology, connecting our members SPE and their local community. They are passionate
to other members, and connecting our members to about our society, passionate about SPE, but
external stakeholders. I think the SPE local section also passionate about our industry and that
is at the heart of that. Sections connect members is contagious.
to technology through technical talks, they bring One of my first visits as incoming president was
in speakers locally or from other areas including with the Ecuador Section where we celebrated their
Distinguished Lecturers provided by SPE. 30th anniversary as a section. It was a lot of fun to
When it comes to connecting our members to meet the local leadership, the Ministry of Energy,
other members, there are periodic meetings when and some of the local companies. In February I
the section gets together but they also have social attended the Oklahoma City Section Mardi Gras, a
and networking events, maybe a golf tournament wonderful evening that raised funds for the local
or clay shoot to help members connect, network, Boys Ranch. In September I was at the Aberdeen
and collaborate. Section where they developed an interesting
The one that I think is sometimes overlooked is event in conjunction with Offshore Europe. The
the impact that our local sections have on external section put on a half-day seminar for local high
stakeholders. They do a tremendous amount of school guidance counselors which explained the
philanthropic work in their communities. I was importance of our industry, future jobs, and the
looking through fiscal year 2022 and I added up type of technologies people are going to have to
contributions from our sections across the world. support. This helped promote STEM programs and
They gave over $1 million total in scholarship helped the counselors guide high school students
money to students. They support the local to move toward our industry. Also, I went to the
community in a wide variety of ways such as Tunisia Section for their reinstatement during an
food banks, shelters, things like that; this is one African Energy Security Summit. It was very well
of the reasons why I enjoy visiting the sections put together and they were excited about getting

6 JPT | December 2023


reestablished. Simeon, I could go on and on. You has evolved. Initially I would call myself an ‘attender;’
probably have more examples than I do, but I wish I attended local section meetings whenever the
I could bottle the excitement and convey it to all topic was something I thought would help me in
our members in the industry. my job. I might go to a golf tournament or some
social networking event and have some fun.
Very interesting, Terry. Thank you for sharing When I moved from ARCO to CARBO, I began
all the sections you visited, the impact those to change my focus because I realized the benefits
sections have on their local community, and of networking—looking for potential clients and
the passion that you can clearly see and feel educating people on what our company did. I
from visiting those sections. SPE, to me, feels decided that I was going to start attending all the
like a big family. When talking with members local meetings and events because I wanted the
across the world, you feel that common network, and I met so many more people, it was
ground in the SPE membership. Tell me a bit just amazing. This is when I started volunteering,
more about your SPE membership. You have I did not set out one day and say I am going
been an SPE member for over 40 years. What to volunteer.
made you join SPE and when did you make the My first volunteer work happened because
decision to volunteer? somebody asked me to. Two things happened at
When you talk to most members, they credit their the same time. At the local section, Danny Bell,
involvement and leadership with SPE sections as who was the education committee chair, asked
instrumental in their careers. Your involvement in me if I would serve on that committee. Eventually,
the Gulf Coast Section is very similar to mine, and I I was asked to serve as a program chair and then
am sure you have similar stories. Like most, I joined finally as the section chair. At the same time, I was
SPE when I was in college. asked by Carl Montgomery to serve on the Drilling
I joined a student chapter at the time because and Completions Award Committee which was an
I wanted to get something on my resume and international committee.
ultimately get a job. As I entered the professional As I began participating more, more people
ranks, what I got out of SPE and the local section were asking me to volunteer and fortunately, I said

Terry met with the newly reestablished Tunis Section leaders while also serving as a panelist at their Energy Summit.

jpt.spe.org 7
yes. I think many times we tend to say no because the mid-90s after I was in the industry for about
we are not sure we have time, but for me it has 10 years. I wrote several papers by the time I made
been time well spent. For me personally, this is also it to the Dallas Section. The Dallas Section chair
where I began developing leadership skills. Leading asked me to educate our local section on how to
the Dallas Section, leading some of the committees, write papers and abstracts. I developed a half-day
leading ATCE—all those things continue to feed seminar to explain the process, how to write the
off each other. One of the things I always like to abstract, and how to get it accepted. I also gave that
tell students and young members is that I was a talk at a Gulf Coast Section meeting and now it is a
leader in the Dallas Section long before I was the training that is given in conjunction with ATCE every
vice president of CARBO. Certainly the professional year; I just gave it this past October.
soft skills work is what drove a lot of my success I did not set out to hone a soft skill but writing
outside of SPE. those papers and presenting led to teaching me
how to assemble a training class, taught me how
I like that, Terry. I know we share some of the to present and work interactively with the students
same ideas about volunteering. Someone has in the class. From a soft skills standpoint, it was
to ask you and then of course the answer is amazing. Maybe I will give another course on the
yes; that makes a perfect match. I will share my leadership side. Serving on the Dallas Section
side, a similar SPE journey. I joined in college Board certainly taught me how to lead a volunteer
as well for the same reasons I think you joined. or a group of volunteers who are not being paid to
After that I became involved with the Gulf do what they do, which is different from leading at
Coast Section as a young professional member work. It takes some additional skills. You can learn
chairing the Young Professionals Committee how to motivate a team and how to strive together
and the Education Committee and eventually for a common goal. The Dallas Section’s goal was
chaired the section that led me to become a to win the SPE Presidential Award for Outstanding
regional director and board member at the SPE Section. I think that is a goal for a lot of sections,
level. You mentioned leadership skills and soft but in the end, it turned into leadership skills that
skills, I know a lot of people connect SPE with I transferred immediately over to my work with
technical knowledge, technical dissemination. CARBO. Those are two examples of how I think soft
It is easy to make the connection with the skills or leadership skills can be developed through
technical side of this whether it is the drilling your involvement with SPE and the local section.
study group or the completion study group
that is linked directly to your career, but what That is great, Terry. I completely agree about
about other skills? Can you share one or two the soft skills and leadership skills examples
examples of leadership skills and soft skills that you shared because it is different, it is about
you developed while participating in your local influential leadership. We do not have a
section or in SPE in general, and how have those performance review responsibility or bonus
skills helped you professionally and throughout authority, so you do focus on shared common
the rest of your journey in SPE? goals for the section, for your committee, and
I agree 100% that a lot of people think of SPE as I think you said that very well. I am going to
technical dissemination, but I think some tend to move on to another aspect that I want you to
forget about their soft skills. We are engineers, we expand on. One of the analogies you like to
like to work problems and be technical, but soft use and highlighted in some of your previous
skills are a huge part of your professional learning. podcasts is the gym membership vs. SPE
For me personally, I began writing papers back in membership. What specific sectional programs

8 JPT | December 2023


do you think benefit young professionals or Learning, participating, volunteering, and
those seeking professional development? leading at the local section opened numerous
I just love the gym membership analogy because doors of opportunity for me and will for you if
the more you put into that gym membership, the you put the time and effort into it like you would
more you get out of it. SPE membership is the the gym membership. One of the things I always
same way: The more you put in, the more you get encourage students to do when they get their
out. I think that students and young professionals first job is to join your local section, because if
need to take care of four important items to you do that you are on your way to creating your
create their energy future and their future in our energy future.
industry. Members need to learn, to participate,
to volunteer, and then lead. I think sections This is very important for students, young
provide opportunities for all four. professionals, and section members to know.
First, you should engage in lifelong learning. I think you describe the volunteering value
I know that is a cliché, but technology is changing well. This is the image of SPE, and the work
so fast in our industry that you have to continue the sections do in the communities is very
to learn to keep up. Again, the sections put on impactful. I remember my first University of
technical talks, SPE provides two Distinguished Houston volunteering event. I planted trees at
Lecturers every year to each section who are the Houston Arboretum. It was a selfless act
experts in our industry that come from all over to just do something for the betterment of the
the globe so you can build local technical skills environment and for the city that I am in, and
and broaden your horizons. I think that’s an example of how most people
Second is participating. You should can probably find many opportunities in their
participate somewhere, and I think that the local section to volunteer. Terry, it was great to talk
section provides the opportunity to network and to you today. What are you planning to talk
to collaborate. We are not going to solve our about next month?
problems in a vacuum, we need to be able to First, I want to do a quick reminder for the awards.
collaborate with others. I have heard many people The portal is open for nominating your colleagues
who have gotten their next job by networking for regional and international awards. I encourage
at the local section. I cannot overemphasize the everybody to nominate well-deserving colleagues
networking and collaboration side. to recognize their work in the industry and for
Third is volunteering. It teaches you how to their service.
work with others for a common purpose which can Next month I want to move on from the
be done at the section level. The section develops regional sections to the technical sections. A lot
not only technical events, but also events for the of people do not understand the technical sections
community that provide not just professional so I will dive a little deeper into how SPE can help
fulfillment but also personal fulfillment. This is us collaborate on a more global level via our
one of the ways we can put a positive light on technical sections.
our industry. Simeon, I really appreciate you taking the time
Fourth is that if you do all those things, to be a part of the podcast this month, and I want
somebody is going to ask you to lead something, to thank you not only for your service on the board
and I want to encourage you to say yes. The sections but also all your involvement with the Gulf Coast
run themselves: They have their own leadership, Section. You are a good example of someone
their own bank accounts, their own events that you who is creating their energy future, so thank you
work together on and lead at the section level. very much. JPT

jpt.spe.org 9
COMMENTS

Unconventional Shale Reservoirs


Meet Cancer Genome Sequencing
to minimize interference from offset wells and
co‑developments to optimize reservoir recovery
Pam Boschee in unconventional fields.
JPT Managing Editor At that time, the technologies and their
capabilities were limited. Although subsurface
microbial DNA sequencing for upstream assets
has found applications in enhanced biocide
and corrosion inhibition, reservoir sweet spot
The cross-industry development and application indicators, and tracer technology, use of the
of technologies is the epitome of innovation and technique was thought also to have potential in
ingenuity. The more divergent the industries are, horizontal well development planning via RDD.
the more the unique ways of thinking strike us Learning of a genomic sequencing technique
as remarkable. for cancer cell identification in humans at the
Technology transfer between the oil and biology and biochemistry department at the
gas industry and other sectors isn’t new. Many University of Houston, the wheels started turning
examples can be found in medical science, space at CTV with thoughts it could be developed and
exploration, and renewable and sustainable adopted for RDD.
technologies. In this JPT issue, the technologies Similarities were seen because RDD uses in-situ
of Oceaneering Space Systems and Impossible subsurface microbial DNA to infer the depths from
Sensing Energy are featured. which fluids drain after fracturing a horizontal well
A case study presented at the 2023 SPE Annual and optimizes well spacing on a pad, especially in
Technical Conference and Exhibition took medical stacked reservoirs.
science to a new low—into the depths of the The predictive analytics platform mapped the
Permian Basin for downhole reservoir drainage hydrocarbon footprints of geologic subzones by
diagnostics (RDD). using noninvasive DNA testing tools. The unique
The coauthors, a subsurface and wells DNA markers for RDD were extracted from mud
manager and a chapter manager, surveillance, and cuttings from the horizontal and vertical
analysis, and optimization and pilots at Chevron drilling sections. DNA from produced fluids was
Technology Ventures (CTV), described using also collected.
genome sequencing for cancer detection and The authors wrote, “Produced fluids collected
treatment in a successful proof-of-concept (POC) at two-to-four-week intervals at the wellhead are
test conducted from 2017 to 2019. mapped to the RDD framework. They are ‘lineage
Nampetch Yamali and Daniel Emery explained traced’ back to shale and tight rock. Drainage
in SPE 215052 how in 2017 CTV was given the heights and percentage of contribution from these
task of identifying technology to assess vertical locations is computed adapting DNA sequencing
drainage dimensions to estimate drainage and data analytics pipelines which were developed
volumes from fractured wells. The goal was for lineage tracing cancer cells, breaking off from

10 JPT | December 2023


JPT EDITORIAL REVIEW BOARD

the primary tumor and metastasizing to distant sites back Patrick Miller—Chairperson, Petronas
Imran Abbasy, Pakistan Petroleum
to the tissue of origin.”
Anson Abraham, CNRL
After validating the DNA extractions, CTV conducted a
Amir Alwazzan, Dragon Oil
blind test using only the DNA data to determine the landing Mariela Araujo, Shell
zones for each of the four wells in the pad. Using clustering Jyotsna Asarpota, Halliburton
methods, the results of the blind test accurately identified Elizabeth Barsotti, MRC Laboratory
all landing zones within an acceptable margin, according Linda Battalora, Colorado School of Mines
to Yamali and Emery. Zhiming Chen, China U. of Petroleum
Graham Collier, Consultant
The next step in the trial analyzed the DNA of the
Santanu Das, ONGC
produced fluids. “Preliminary results showed drainage
Sandeep Dhawan, WellPerform
height estimates for each horizontal well.”
Michael Fuller, Chevron
In 2021, the study continued with an additional four Jeff Gagnon, ExxonMobil
new field trials in the Permian Basin for application of the Reza Garmeh, Callon Petroleum
technique to zonal production identification. The authors David Gurney, KUFPEC
wrote, “Although the results from the POC were positive, Subodh Gupta, Heretech Energy

subsurface DNA RDD technology is a novel technique Dennis Harris, Chevron


Martin Hayes, Dragon Oil
within the oil and gas industry, and advanced applications
Hussein Hoteit, KAUST
are still evolving. This combination naturally gives rise
Mehdi Izadi, ExxonMobil
to more general skepticism and a need to thoroughly Siddarth Jain, Sharjah NOC
evaluate the technology from operational, economic, Simon James, CS8 Consulting
and accuracy perspectives.” Swathika Jayakumar, Core Laboratories
The paper describes the ongoing cross-disciplinary Colin Johnston, Worldwide Oilfield Machine

work being done by petroleum engineers, geologists, Muhammad Khan, ADNOC


Celestina Kissi, ChampionX
microbiologists, and stratigraphers to fully evaluate this
Mahdi Mahmoudi, Variperm
method of RDD. It further details CTV’s wider approach
Swamy Margan, Halliburton
to “accelerate the innovation life cycle, from pilot stages Mark McClure, ResFRac
to widespread adoption at scale,” emphasizing the Sandeep Mukherjee, Callon
need for leaders’ support for nonconventional thinking Soujatya Mukherjee, Wintershall DEA
and approaches. Anand Nagoo, Nagoo and Associates
As the close of 2023 approaches, I’d like to take this Gopi Nalla, DeGolyer and MacNaughton
Eudorah Ochai-Audu, Shell
opportunity to wish you the best in 2024 on behalf of the
Danny Ochoa, Schlumberger
JPT Editorial Review Board and the JPT staff.
Carlos Pedroso, Enauta
We’ll be kicking off the new year with the commemoration
Shahvir Pooniwala, Aramco
of JPT’s 75th anniversary. Each issue will include an article Kaibin Qiu, Schlumberger
dedicated to the evolution of technology and industry Pierre Ramondenc, Schlumberger
practices over the seven and a half decades JPT has covered Michael Romer, ExxonMobil
the upstream industry. In January, Trent Jacobs and Stephen Babatunde Salawu, Shell
Débora Salomon, Dow
Rassenfoss will revisit technological advancements since JPT’s
Amit Singh, Chevron
50th anniversary in 1999. Since then, over 25 million B/D
Victor Soriano, YPFB Chaco
have been added to the global supply thanks in very large
Cornelis (Kees) Veeken, Consultant
part to advancements in drilling, completions, and reservoir Larissa Walker, QGC
technologies. Join us as we explore these along with some Junjie Yang, Baker Hughes
predictions made 25 years ago and the surprising realities Karam Yateem, Saudi Aramco
of where the industry stands today. JPT

jpt.spe.org 11
GUEST EDITORIAL

The Engineer
of the Future
Aaron Ketter, Devon Energy

R
ecently, at the SPE Annual Technical Conference and
Aaron Ketter holds the position of Exhibition, I was asked a question about the ‘engineer of
vice president of the Mid-Continent the future.’ As we take a pause to turn the page to next
and South Texas Business Unit for year, I believe now is a prescient time to contemplate
Devon Energy. His multidiscipline what’s next for petroleum engineering.
teams are responsible for creating
Throughout my career, I’ve been able to witness great change
and executing the corporate
in our industry as the shale revolution took hold making horizontal
strategy encompassing financial
performance, capital program, drilling and hydraulic fracturing commonplace, diagnostic and
and business development modeling tools improved in access and cost, and data became more
opportunities. Prior to his current timely and readily available. This led to a tremendous period of US
position, he held various roles at energy supply growth and decades-long productivity improvements.
Devon including vice president
Looking forward, I believe there are three trends that engineers
Rockies Business Unit, vice
should consider: 1) applying “new” tools to solve “old” problems,
president strategic planning,
manager midstream and marketing,
2) connecting the dots via hybrid engineering, and 3) organizing,
acquisition and divestitures, directing, and inserting data predictions into their workflow.
deepwater exploration, and multiple These are not only my views but also the views of Devon’s
onshore engineering assignments. talented engineers.
Ketter holds an MBA from
The University of Chicago Booth
Old problems will meet new solutions. The past decade has been
School of Business and a BS in
dominated by unconventional horizontal development that was first
petroleum engineering from
The University of Oklahoma. He pioneered in the Barnett Shale for natural gas and shortly thereafter
currently serves on boards for the transitioned into oil-focused development in the Bakken and Eagle
Petroleum Alliance of Oklahoma, Ford. Today, the Permian Basin continues to grow in total supply as
Oklahoma City Museum of Art, and the stacked pay is developed.
Oklahoma City Urban League.
Engineers should take stock of the tool set we have acquired
during this era with a mindset to deploy these methodologies to
tier II unconventional extensions, previously developed or bypassed
conventional formations, offshore and international opportunities,
enhanced recovery projects such as EOR and refracturing, and
new energy opportunities like geothermal. To make these future
opportunities competitive and meet the global demand for
energy, we will likely need a combination of price, technology,
and cost improvements.
Engineers are critical to the latter two. To better illustrate these
points let’s utilize examples. Drilling rig specification improvements

12 JPT | December 2023


GUEST EDITORIAL

have been coupled with material science and Hybrid engineering melds the skills of
design improvements in bottomhole assemblies. different disciplines into an improved
The outcome is improved topdrives and mud solution. As I reflect on my own experience, one
pressure systems to power more durable and of the big changes in the shale era has been the
efficient downhole motors and bits, thus reducing segregation of engineering skills to build deeper
failures, enhancing the efficiency of a rig’s daily capabilities. Engineers might have originally
footage, and enabling longer laterals. If we pivot held responsibilities spanning two capabilities,
to the completion space, our diagnostics for frac perhaps three, e.g., drilling, completions, facilities,
geometry have gone from limited and costly to production, reservoir, and planning. The eventual
a menu of options that provide fit-for-purpose segregation of job scope was beneficial as growing
diagnostics and costs. knowledge catalyzed segment improvements which
Devon deployed its first permanent fiber were important as we migrated to more robust
diagnostics in unconventional shale in 2012. development plans.
Today, the same system is readily available The future trend for engineers will be the
but for a much lower cost. However, more ability to meld disciplines and integrate tools to
frequently Devon has supplemented this tool unlock more resource recovery per unit of cost.
with dip-in fiber and a proprietary methodology To illustrate, consider the following examples.
called sealed wellbore pressure monitoring Subsurface optimization epitomizes the
to gather more frequent data points for frac challenges of past and future development
geometry and design. As our team conducted, in decisions. In a single-zone greenfield development,
cooperation with the US Department of Energy well spacing and completion design interact to
(DOE), a novel Eagle Ford project capturing achieve an economic outcome. This situation
horizontal core and completion diagnostics, we becomes more complicated when you contemplate
recognized that our designs have tremendously multiple zones with connected flow units
improved in efficiency but still have potential necessitating decisions about vertical spacing,
to capture more of the resource via initial and sequencing, and the effects of co-development,
secondary fracturing efforts. or lack thereof, on future development. Finally,
If we consider the production space, a tool that layer in the effects of time, as most operations
has been within our systems for years is SCADA. contain a previously developed well that has
This system historically was a controls system. undergone depletion.
During the past 2 decades it has provided the first These are the type of challenges that only
step in a system streaming data, coupled with hybrid engineers can overcome. We must marry
evermore sensors and visual cameras, to enable our historical experiences and learnings with future
our local decision support center in each asset. challenges across multiple disciplines to yield
These centers now serve as the brains of our field custom solutions. Predicting well performance
operations, remotely monitoring, dispatching has become progressively more difficult as solely
repairs, and optimizing wells daily. These efforts relying on offset wells to inform forecasts is the
have led to the upskilling of our field staff and way of the past. An integrated team, however, can
increased our efficiencies on a well count per distill the most informative variables in a grand
team member basis. multivariate problem to yield better solutions.
These are just a few examples as to how we, If we pivot from the subsurface to the surface,
at Devon, have transformed during the shale era the combination of increasingly complex facilities,
and this mindset should be the foundation for addition of emission reduction and monitoring
unlocking future industry challenges. expectations, and the growing need for electricity

jpt.spe.org 13
GUEST EDITORIAL

has had a profound effect on the job scope of a however, as Devon’s engineers have demonstrated,
facility engineer. Now our engineers must give the advance in large language models lessens the
forethought to working with power providers, or in barrier to coding.
some cases, microgrids and local power generation, A holistic example is how Devon has made
which require decisions years in advance of important changes to train and lower the barrier
production. The inclusion of onsite continuous to skill development. We have initiated a data
monitoring sensors for optimization and emissions science cohort boot camp for our team members.
purposes elevates the coordination to design the Within this camp, experts in data engineering,
equipment. Lastly, the economic efficiencies of architecture, and science instruct our team
connecting multiple units into a single site must be members and eventually coach participants to
balanced with the design requirements of varying a final business project.
well tie-in timing and peak rates. A production engineer recently highlighted his
As these examples illustrate, a hybrid engineer results in a broad forum to reinforce the approach
will have to integrate multiple challenges, both to “learn, do, share.” This specific project captured
internal and external, to routinely design custom the task of compression optimization. A necessary
solutions. I expect engineers who can connect the task in the present becomes more proactive and
dots will have outsized influence on teams. efficient with data improvements and AI.
For context, compression optimization is a
Data and a future with AI. Data has been a task that engineers undertake as volumes decline
transformational change during my career. I recall and equipment becomes oversized, incurring
data being gathered by hand and other times via unnecessary costs. By connecting data from
technicians who would input it into spreadsheets. operations, supply chain, and financial accounting,
Our historical systems were designed for low- our team can rapidly scan the field for optimization
quality and low-volume data. Fortunately, great projects and prioritize. Although this is a simple
change has happened as wellsites stream data, example, imagine the effects of scale with multiple
from the subsurface and surface, to organized assets in a decentralized field structure overseeing
data management systems. hundreds of compressor units. The engineer’s
When I asked engineers about the future of purpose didn’t change; the process for the task
the industry, they all mentioned data and AI. To did though.
make it actionable I simplify this effect into two Data and AI will change our industry for
skills: data conditioning and predictions. the better. At the root of this change will be
Data conditioning is the skill of using data the empowerment of engineers to make
science packages to gather and characterize better decisions.
data to feed predictions. Predictions are the In closing, I want to reflect on why I first
output of algorithms from simple multi-what if became an engineer. The intersection of solving
equations to deep learning honing the algorithm problems with brilliant and diverse people and
based on dynamic situations and previous global relevance provided the fuel to become
prediction outcomes. an engineer. Looking forward, given the right
The component connecting these two skill sets tools and support, I’m confident our skills will be
will be the act of coding. Coding, once reserved needed to provide energy to power the world, the
as a niche skill set, will be a ubiquitous tool for challenges will be as rewarding as ever, and the
engineers. That change can sound daunting; people will make the journey memorable. JPT

14 JPT | December 2023


E&P NOTES

Mediterranean Discovery Leads hub on the Norwegian Continental Shelf. DNO


to New Partnerships North Sea Ltd. is the operator holding a 50%
The Israeli government awarded 12 offshore interest, with Aker BP holding the remaining 50%.
licenses to six companies to explore for natural
gas off the country’s Mediterranean coast after
large gas deposits have been discovered in the East
Mediterranean over the past decade and a half.
Six of the licenses were awarded to Eni, Dana
Petroleum, and Israel’s Ratio Energies to explore
an area west of the Leviathan field. The remaining
six were granted to BP, Azerbaijan’s national oil
company SOCAR, and Israel’s NewMed Energy to
explore north of the Leviathan. The licenses will Offshore oil and gas platform in the North Sea.
last for an initial 3 years, with the option to extend Source: Igors Aleksejevs/Getty Images/iStockphoto.
to up to 7 years, depending on progress.
TGS Technology Makes Strides
in Offshore Bangladesh
Global energy data and intelligence provider
TGS announced a new regional multiclient
2D seismic program offshore Bangladesh in
partnership with SLB and Petrobangla. According
to the company, the program’s initial phase will
comprise approximately 11,000-line km of newly
acquired high-resolution broadband 2D seismic
data on a regional scale to enhance the geological
understanding of the prospective Bengal Fan.
Leviathan natural gas field platform. Source: Jack Guez/ Nearly 32,000-line km of multiclient seismic data
AFP via Getty Images.
covering offshore Bangladesh is anticipated to be
covered throughout the program.
NSTA Awards Big in North Sea The acquisition began in early January 2023,
The North Sea Transition Authority (NSTA), Britain’s with final processing deliverables anticipated
oil and gas regulator, awarded 27 new hydrocarbon in Q1 2024.
exploration licenses, the first of its kind since 2019.
Seventy-six companies applied for licenses, located
in the central and northern North Sea and west of
Shetland during this round, with successful bidders
including Shell, Equinor, DNO, Aker BP, Ithaca,
TotalEnergies, and BP. NSTA analysis estimated
the average time between discovery and first
production is close to 5 years and falling.
From this round, DNO North Sea Ltd. and Aker
BP announced a partnership for Blocks 9/9f, 9/10c,
9/14c, and 9/15d, located along the Norwegian
Source: Mark Rubens/Getty Images/iStockphoto.
border and west of the Aker BP-operated Alvheim

jpt.spe.org 15
E&P NOTES

CNOOC Begins Production on Two Projects Hibiscus South satellite prospect leading the
CNOOC Ltd. has started production on two company to announce its plan to return to the
projects—Enping 18-6 and Penglai 19-3. well to complete it as a production well in early
Enping 18-6, located in the Pearl River Mouth 2024. The well was drilled from the MaBoMo
Basin of the South China Sea, has an average water production platform to a total depth of 6002 m.
depth of 99 m. The project’s main production The target area is located approximately 5 km
facilities include one wellhead platform, with southwest of the MaBoMo and was drilled by the
15 development wells planned to be put into Borr Norve jackup rig. Evaluation of logging data,
production. It is expected to achieve a peak sample examination, and formation pressure
production of approximately 9,300 B/D in 2024. measurements confirm approximately 20 m of pay
CNOOC Ltd. holds 100% interest and is the operator. in an overall hydrocarbon column of 26.5 m in the
Penglai 19-3, located in the south-central Bohai Gamba formation, according to the company.
Sea, has an average water depth of approximately Preliminary evaluation indicates gross
30 m. The main production facilities include two recoverable reserves of 6 to 7 million bbl of oil and
wellhead platforms, and 130 development wells approximately 16 million bbl of oil in place, in line
are planned to be commissioned, including 87 with the mid-case pre-drill expectations reported
production wells and 43 water-injection wells. prior to the beginning of drilling operations.
It is expected to achieve a peak production of
approximately 29,800 B/D in 2027. CNOOC Ltd.
holds 51% interest and acts as the operator,
while ConocoPhillips China holds the remaining
49% interest.

Petronas Teams Up in Malaysia


Petronas signed a late-life asset (LLA) production-
sharing contract with Ping Petroleum Sdn. Bhd. for
the Abu Cluster offshore Peninsular Malaysia. The
Abu Cluster comprises three developed fields: Abu,
Abu Kecil, and Abu SW Upthrown, and remaining
reserves of 5 million stock-tank bbl. Borr Norve. Source: Borr Drilling.
“With this award, Petronas is looking forward
with Ping Petroleum to maximize the recovery from
the Abu field, which registered a peak production Chevron’s Myanmar Departure
of 15,000 B/D in 2008. Furthermore, with the Hits a Snag
implementation of enhanced commercial terms for Two years after the company announced it will
LLA streamlined operational procedures, we are leave Myanmar in protest of violence and human
empowering the operator to apply their capabilities rights abuses, Chevron is struggling to offload its
to monetize the Abu Kecil and Abu SW Upthrown assets there, including a portion of an offshore gas
fields,” said Senior Vice President of Malaysia field in a venture with the state energy company.
Petroleum Management Mohamed Firouz Asnan. The departure announcement came in January
2022 as the country has been in crisis since the
BW Energy Plans for Production army overthrew the elected government in 2021.
BW Energy’s DHBSM-1 appraisal well has In February 2023 the company said it had
encountered commercial volumes of oil in the agreed to sell its assets, including a 41.1% stake in

16 JPT | December 2023


E&P NOTES

Myanmar’s Yadana gas field, to Canada’s MTI Energy expected to produce around 50,000 BOEPD at
for an undisclosed price. peak production.
The Yadana field, located in the Gulf of Neptune Energy holds a 35% stake in Seagull
Martaban, has produced around 6 billion m3 per and operated the field through the development
year of gas, about 30% of which has been supplied phase, drilling wells, and installing subsea
to Myanmar’s Myanma Oil and Gas Enterprise for equipment, with BP holding (50%) and operating
domestic use and 70% exported to Thailand. the production phase of the development. JAPEX
holds the remaining 15%.
Petronas Strikes Big in Suriname
Petronas Suriname E&P announced the discovery Small, but Mighty, Discovery by Equinor
of several oil-bearing layers in an exploration in North Sea
well off the coast of Suriname in areas adjacent Gas production is expected to start as early as
to Guyana. The Roystonea-1 well, located in Q4 2023 in the Gina Krog field in the North Sea
Suriname’s Block 52 in a water depth of 904 m, was thanks to a recent discovery by Equinor. Drilled by
successfully drilled to a total depth of 5315 m. In the Noble Lloyd Noble rig, the find is a partnership
2020, Petronas and ExxonMobil’s well, Sloanea-1, between Equinor acting as the operator (58.7%),
made a discovery in the same block. KUFPEC Norway AS (30%), and PGNiG Upstream
Covering an area of 4,749 km2, Block 52 is Norway AS (11.3%). The recoverable volumes are
located within the prospective Suriname-Guyana estimated to be between 5 million to 16 million BOE.
basin, approximately 75 miles offshore north of This is the first commercial discovery in the
Suriname’s capital city, Paramaribo, with water Gina Krog license since 2011. JPT
depths ranging from 50 to 1100 m.
Petronas Suriname E&P is the operator with a
50% stake while ExxonMobil E&P Suriname holds
the remaining 50% interest.

BP Starts Production in North Sea


BP started up production in the Seagull oil field,
located in Block 22/29C of production license
P1622, in the UK North Sea. According to the
company, Seagull has been developed by Neptune
Energy as a subsea tieback to the BP-operated
central processing facility of the Eastern Trough
Area Project in the central North Sea, around
Noble Lloyd Noble. Source: Jamie Balkie/Equinor ASA.
140 miles east of Aberdeen. The new field is

jpt.spe.org 17
FEATURE | PE Graduation Trends

More Students Going Into


Petroleum Engineering
­Programs as Research Work
Tilts to Alternative Energy
STEPHEN RASSENFOSS, Emerging Technology Senior Editor

Tchemongo Berte (left) is studying low-salinity


waterflooding assisted by a fellow University
of Oklahoma grad student, Nayem Ahmed,
whose research supports alternative energy.
Source: Alex McSheridan, OU.
18 JPT | December 2023
FEATURE | PE Graduation Trends

O
il companies are eagerly hiring “Probably word of mouth is seniors getting
petroleum engineering graduates, jobs, and junior and sophomore internships is a
but the steep falloff in petroleum big factor in the rise,” Heinze said.
research funding is forcing a shift to Another plus is that undergraduate enrollment
alternative energy work. is up at seven of the 10 largest programs surveyed
On the plus side, those connected with in the US and the Middle East.
programs said most seniors have lined up jobs “Almost everyone is up,” said Mashhad
well in advance of graduation and some are Fahes, an associate professor at The University
getting multiple offers. of Oklahoma (OU), who reports that nearly all
Companies are competing for a small pool those approaching graduation have jobs in hand,
of talent, with 660 seniors expected to graduate often with multiple job offers.
this year, down from a peak of 2,615 in 2017, Internships were so widely available that OU
according to the annual SPE survey of colleges had no takers for a summer program created to
with petroleum engineering programs by provide an alternative to paid internships a couple
Lloyd Heinze, professor emeritus at Texas Tech, years back when those opportunities were scarce.
who predicts that number will drop to 572 in Similar evaluations of the job market were
2025 based on the number of juniors. offered by sources from Texas A&M University
After that, enrollment looks likely to rise. and The University of Texas Permian Basin (UTPB).
There has been a 13% increase in the number In all cases, the jobs were mostly in oil and gas
of freshman and sophomore students, exploration and production.
which is attributed to the strong demand “They know that if they get a degree from our
for petroleum engineers. program, they can easily find a job in the area,” said

Graduation Rate
The decline in the BS degrees granted is projected to continue through 2025.

2,000

1,000

2012 2014 2016 2018 2020 2022 2024

Source: Lloyd Heinze.


jpt.spe.org 19
FEATURE | PE Graduation Trends

between price and enrollment, and the PE survey


School 2023 2024
results support that notion.
University of Texas 374 388
This year, the price of benchmark Brent
King Fahd University 359 388 crude has flirted with $100/bbl as oil demand has
Texas A&M 298 322 remained around 100 million B/D and OPEC+ has
cut production. But in mid-November, Brent crude
Kuwait University 262 284
was trading at around $80/bbl. That is equivalent
Penn State University 224 190
to $62 when inflation-adjusted based on the buying
Texas Tech University 145 160 power of the dollar in 2014, when it last traded
Colorado School of Mines 140 133 at $100/bbl.
The fact that companies are making money
University of Texas Permian Basin 110 118
at that level is testimony to the cost cutting and
Louisiana State University 123 112
technological advances made by the companies
The University of Oklahoma 91 106 still in the business.
Ten biggest petroleum engineering schools based on Industry research spending looms large
undergraduate enrollment. Source: Lloyd Heinze. because universities can no longer depend on
the US government to fund oil and gas research.
Ahmed Kamel, an associate professor who is the “Two things are happening here,” said Johannes
department coordinator at UTPB. Alvarez, a Texas A&M graduate who serves on the
UTPB, which now has more PE students university’s industry advisory committee.
than OU and LSU, draws a large percentage of The first is that the US Department of Energy
its students from west Texas who have grown stopped funding most exploration and production
up around the oil business before enrolling, and research unless it reduces the environmental
Kamel said many are working in the industry impact of those activities and largely moved money
while in college. into low-carbon energy sources and conservation.
In addition to knowing the business, he said The second is that since the price crash in 2014,
they offer another benefit: “Oil and gas companies research funding from oil companies is down.
want people from here who will stay here.” While big companies like Alvarez’s employer,
The program, started in 2011 as part of the Chevron, have continued to support research, the
business school, is now part of UTPB’s College number of companies backing that sort of work
of Engineering offering degrees in mechanical, has shrunk due to consolidation such as the recent
chemical, and civil engineering. acquisitions of Pioneer Natural Resources by
Its growth plan includes a petroleum ExxonMobil, and Hess by Chevron.
engineering graduate program in the future, which Fahes is doing petroleum research aimed
will require increasing its research work. Kamel at explaining how low-salinity water injection
said that it currently has the research support it can increase production in some instances. But
needs for teaching undergrads. others she works with have shifted to alternatives.
For example, an OU researcher has gone from
The Research Gap modeling asphaltene production to carbon dioxide
Every year’s enrollment survey includes a chart injection analysis. Another is studying using
showing the price of oil as of that year’s January. fracturing to create geothermal heating systems.
Heinze began doing that after the late Stephen Based on what she is seeing and hearing as a
Holditch, an influential professor from Texas A&M member of the SPE Education and Accreditation
and 2002 SPE president, said there is a relationship Committee, Fahes said a high percentage of the

20 JPT | December 2023


FEATURE | PE Graduation Trends

Undergraduate PE Enrollment
Total undergraduate enrollment in universities responding to SPE survey.

12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Lloyd Heinze.

research done by US petroleum departments is not Heinze points out that roughly half of those
related to exploration and production. teaching petroleum engineering are industry
Petroleum engineering faculty reported having veterans who pass on what they have learned
trouble finding research funding in a recent global from experience. But, he said, finding research
survey reported in a paper about how the energy opportunities is a big problem for young professors
transition is affecting petroleum engineering looking to win tenure.
programs, for which Fahes was the lead author “It is not an issue writing papers, not an
(SPE 215086). issue teaching; it is getting research dollars,”
On the plus side, the fact that those developing he said.
new energy sources are turning to petroleum These universities are still home to significant
engineering programs shows the value of drilling, oil and gas research centers. These joint-industry
fracturing, and reservoir expertise. efforts are often built on the reputation of
Fahes does not question the need for new high‑profile professors.
energy sources, but fears that graduate students Many of those are nearing retirement age,
whose research is on alternatives to petroleum which often means the end of their research group,
may be poorly prepared to solve oil and Fahes said.
gas problems. At Texas A&M, Alvarez worked with David
“We are feeling our identity slowly shifting,” Schechter, a professor who ran a lab that evaluated
Fahes said. chemicals for enhanced oil recovery (EOR).

jpt.spe.org 21
FEATURE | PE Graduation Trends

The work related to laboratory testing methods fossil fuel demand for decades ahead, reducing
to match chemicals with reservoir conditions was the need for a name change. Responses from the
reported in Alvarez’s PhD thesis, which led to a job Middle East were in between.
as an EOR and CO2 advisor for Chevron. In his international travels, Heinze has seen
This year he delivered a paper on successful wide variations in PE education and has worked
EOR testing in the Permian by Chevron where to expand the survey to reflect those.
the EOR chemical screening method developed The ranking of the top five undergraduate
at Chevron was used to identify chemicals which programs shows he has had some success in
proved effective in the field (URTeC 3870505). expanding the survey.
A year ago, Schechter retired from Texas The University of Texas-Austin is followed
A&M where he’d worked for nearly 23 years. He by King Fahd University—which was number 1
now is the vice president of reservoir engineering last year—followed by Texas A&M and Kuwait
for EOR ETC. University. But international names are limited
because the survey was created to track US
Geo-Engineering Major? institutions accredited by ABET, which required
A transition to a world with a growing number enrollment reporting.
of energy sources that require the expertise “I am hoping for a little more participation from
of petroleum engineers is likely a long-term outside the US,” Heinze said. He acknowledged that
advantage for petroleum engineering programs the current sample “is biased on the US programs,
and prospective students worried about the with a few Middle Eastern programs.”
future of oil companies. That has long been a goal of his. Now he is
But this shift to something labeled working to pass that challenge on to someone else.
“geo‑engineering” hits a hot button for many Heinze said this is his last survey. He is working on
SPE members—it leads to talk about changing recruiting someone to take on the job he has done
petroleum engineering department names. since the early 1990s, when the SPE Education and
Based on the petroleum engineering Accreditation Committee discontinued publishing a
department survey, that’s coming. book on petroleum engineering programs because
While 75% of those surveyed said fossil of limited sales.
fuels will continue to matter in the energy mix His immediate goal is to keep the survey
and 57% see the energy transition as a threat to going. The hard part of gathering the data is
petroleum engineering education, 80% see this finding a person in the petroleum engineering
transition as an opportunity to change things. department willing to do the digging needed to
Those changes may well include the collect the data for the survey.
department’s name. Nearly half the respondents Longer term, he sees changes. Heinze
said departments should consider a name change, recognizes that creating a global survey likely
and “40% believe the name will change within requires a group of SPE members with personal
10 years.” connections to significant training grounds in their
The survey showed that views on the future part of the world.
of oil use and the politics related to that volatile Creating a consistent global survey will
issue vary widely. be a challenge. There are wide variations in
In Europe—where a rapid transition away programs. The US petroleum engineering model
from fossil fuels is a priority—the responses were has made inroads in some parts of the world,
overwhelmingly in favor of changing the name of particularly in the Middle East where many of the
the degree. Those in the US generally saw strong administrators and faculty went to school in the

22 JPT | December 2023


FEATURE | PE Graduation Trends

US. But some programs do not even use the label “We need the data itself. If right now we
“petroleum engineer.” do not watch the curve, we may be too late to
The rationale for doing the work needed to fix it,” she said. JPT
gather education data is that it provides a leading
indicator of the numbers of students and the skills FOR FURTHER READING
sets possessed by professionals who play a critical
role in the oil business and, increasingly, other SPE 215086 The Impact of the Energy Transition
sources of energy. on Petroleum Engineering Departments:
Fahes, who championed the energy transition The Faculty Perspective by M. Fahes,
survey, would like future surveys to answer The University of Oklahoma; R. Hosein,
other questions such as the number of women The University of the West Indies; and
in petroleum engineering programs and how G. Zeynalov, Baku Higher Oil School, et al.
many graduate students are involved in oil and Maintaining Petroleum Engineering Education
gas research. To Support the Energy Mix of the Future
The effort needed to track petroleum by M. Fahes, The University of Oklahoma;
engineering programs globally would be significant, R. Hosein, The University of the West Indies;
but Fahes said it could be an essential asset during and G. Zeynalov, Baku Higher Oil School,
a period of change. et al., JPT.

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FEATURE | PE Education of the Future

Maintaining Petroleum
Engineering Education
To Support the Energy Mix
of the Future
M. FAHES, R. HOSEIN, G. ZEYNALOV, D. KARASALIHOVIĆ SEDLAR, M. SRIVASTAVA,
G.S. SWINDELL, N.C. KOKKINOS, G.P. WILLHITE, and L.A. SNYDER

Source: Xavier Arnau/Getty Images.

24 JPT | December 2023


FEATURE | PE Education of the Future

S
ince petroleum engineering was appeal to the new generations of college students
formally established as a degree and instilling in them the principles needed to
program, the scope and content of secure the safe, sustainable, just, and responsible
curricula has been evolving to match energy industry of the future.
technological advancements and soft Petroleum engineering faculty are at the
skills requirements to meet the needs of the oil forefront of these challenges, trying to balance
and gas industry. The cyclical nature of the industry multiple competing demands while keeping up
has always presented a challenge to the enrollment research and educational programs that continue
and the viability of the degree. However, while to be relevant. In this article, we bring to light the
having to tackle challenges relating to record-low perspective of the experts, across the globe, that
enrollment over the past few years that is the over the past 5 decades educated and prepared
direct result of the recent industry downturn, the workforce that supported the oil and gas
academic programs are also experiencing industry. These perspectives were collected
mounting pressure that is transforming the core using a survey probing what faculty members are
identity of these programs. Much of that pressure experiencing regarding the impact of the energy
can be directly linked to the heightened awareness transition on recruiting students and on strategic
around the impact of emissions on climate and directions in academic programs, the impact
the environment. on their ability to fund their research and train
While technological advancements in graduate students, and what the faculty need to
clean energy is contributing to an accelerated maintain a curriculum that is relevant to the future
transition in the energy sector that is reducing careers of their students.
the share of the energy market need fulfilled
by fossil fuels, all of the projections point to Methodology
oil and gas continuing to be a critical part of The online survey was envisioned and developed
the energy market until at least 2050. When by the Society of Petroleum Engineers’ Education
considering development and utilization of and Accreditation Committee (EAC) and
capture technology, the share of oil and gas in administered by the SPE Research Group. The
the energy market could continue to remain survey was sent to SPE members who identified
significant well beyond 2050. their association to be with a university or their
Meeting this demand requires maintaining job/role to be faculty. It was also shared with
high-quality petroleum engineering educational the Petroleum Engineering Department Heads
programs, hosted in thriving academic Association (PEDHA) for distribution within their
departments, educating a steady supply of a academic units. The EAC is a standing committee
trained workforce with both undergraduate of SPE that comprises 12 members, six from
and advanced degrees. In addition, it requires academia and six from industry. It is charged,
diversifying the curriculum to continue to meet among other things, with “implementing and
the ever-changing skillset needs of the energy monitoring the policies and programs concerning
industry and the requirements set by the the petroleum engineering faculty and working
Accreditation Board of Engineering and Technology with other engineering and scientific organizations
(ABET). At the same time, the curriculum should to address the issues of quality and supply of
continue to support the needs for a general engineering faculty and students.” With that charge,
education that targets a well-rounded graduate the committee developed the 2022 SPE Faculty
that is ready to be a critical thinker and an active Survey, which was administered during October
participant in society, while also attempting to and November 2022.

jpt.spe.org 25
FEATURE | PE Education of the Future

Table 1—The responses on the various statements, sorted from “agree” and “positive impact” in green, to “neutral” in
grey, to “disagree” or “negative impact” in pink.

The survey consisted of statements assessing US. SPE 215086 provides more details on the
the perceptions about the energy transition and distribution by region and age group.
its impact on faculty and their academic units,
in addition to statements relating to faculty Results and Discussions
perceptions of the future direction of petroleum Table 1 shows the mean and standard deviation
engineering academic programs and curricula and values for the responses to the statements on the
what is needed to support the anticipated changes. perceptions of the energy transition and its impact.
Some of the statements asked the respondents to Detailed frequencies for these responses can be
rank on a five-point scale the extent to which they found in SPE 215086.
agree with that statement, where the options were The main takeaways are:
5-strongly agree, 4-somewhat agree, 3-neutral, • Faculty strongly support the inclusion of
2-somewhat disagree, or 1-strongly disagree. subsurface clean energy, sustainability, and data
Other statements asked what the impact of the analytics in the petroleum engineering curriculum.
energy transition away from fossil fuels has been • Faculty in the US and Canada report lower
on some dimensions of faculty work, where the support for changing the name of the degree
options were 5-greatly positive, 4-somewhat compared to faculty in Europe, Latin America,
positive, 3-did not impact, 2-somewhat negative, Africa, and Northern Asia Pacific.
or 1-greatly negative. • The majority of faculty report having changed
The number of faculty members that the focus of their research. Lack of funding for
responded to the survey was 265. Eighteen percent upstream petroleum engineering academic
were non-male respondents, and there was a research could have a permanent impact on
wide distribution by age group and by region, the identity of these academic programs and
with only 35% of the respondents based in the the skillsets of the workforce they train.

26 JPT | December 2023


FEATURE | PE Education of the Future

Not at all
Limited to advanced degrees
50% Add content to existing courses
Optional electives
Mandatory courses for all undergrad students
40%

30%

20%

10%

0% Environmental Energy transition and/or Data analytics


sustainability/Social and renewable energy (hydrogen,
environmental responsibility geothermal,...)

Fig. 1—Perceptions of the suitable approach to diversifying the PE curriculum to expand the skill set of PE graduates.

A high-level view of the responses reveals that curricula so it continues to be relevant to student
80% of the faculty see the energy transition in a careers (mean=4.45). However, not everyone feels
positive light, as an opportunity for change for prepared with the training and knowledge to do
petroleum engineering (mean=3.99). Over 95% this adequately (mean=2.98).
support covering the topics of environmental Committees at professional organizations
sustainability, clean energy, and data analytics such as SPE, associations such as PEDHA, energy
in the undergraduate petroleum engineering companies, and academic department heads/
curriculum, with the responses suggesting data directors can make this process easier and more
analytics be covered as a mandatory course, clean efficient by preparing resources and designing
energy as optional electives, and environmental events that can help faculty be better equipped
sustainability be included to supplement existing for the needed change in the curriculum. The
courses (Fig. 1). More than 92% are willing to top resources faculty need are well-designed
invest the time and effort needed to update networking events between industry and

Fig. 2—Petroleum engineering faculty opinion regarding how long the degree will be called “petroleum engineering.”

jpt.spe.org 27
FEATURE | PE Education of the Future

Table 2—Statements with statistically significant variability in mean responses by demographic groups.

academia, virtual Q&A sessions with industry to attract funding to support it (mean=3.55).
professionals targeting academic audience, This trend is alarming, showing that the energy
learning communities for petroleum engineering transition has had a negative impact on research
faculty, and course material such as lecture slides funding from industry (mean=2.74) as well as
and content packages. research funding from government (mean=2.88).
Opinions are split when it comes to the Those results support observations that reveal
strategy of changing the name of the petroleum the majority of petroleum engineering faculty
engineering degree (mean=3.10), where 40% abandoning core upstream petroleum engineering
believe that the name will not survive beyond research due to the lack of available and reliable
10 more years, while 33% believe that it will funding sources, and using their skills, resources,
survive beyond 30 years (Fig. 2). It may be too and experience to conduct research and train
soon to change the name of the degree, but graduate and undergraduate students in non-fossil
this conversation needs to be revisited in about fuel subsurface energy production and storage
5 years. (geothermal energy, hydrogen production and
Many petroleum engineering faculty report storage, and carbon dioxide capture, utilization,
having had to change the focus of their research and storage).

28 JPT | December 2023


FEATURE | PE Education of the Future

While the negative impact of the energy • O n the impact on undergraduate recruiting,
transition and the most recent downturn in there was a more negative impact reported
undergraduate recruiting (mean=2.70) may be in the US compared to the Middle East and
starting to reverse given the slight uptick in Africa regions.
first‑year enrollment in petroleum engineering • On whether petroleum departments should
the change in the research direction and the consider changing their name, there was much
training of the oil and gas workforce has a more stronger support from the South, Central,
persistent, if not permanent, impact on the and East Europe region, compared to the US,
identity of petroleum engineering programs. combined with a negative perception from
While petroleum engineers are uniquely prepared those in Europe regarding industry support
to tackle the challenges of clean subsurface for undergraduate education, as opposed to
energy, the question is whether we can afford a positive perception in the US.
abandoning research and training in fossil fuel • Participants in Northern Asia Pacific reported
production. If we truly believe that oil and gas will a stronger response to not being prepared
continue to be part of the energy mix, then the with enough training to include emerging
industry should maintain support for academic clean energy topics in the classroom,
research in upstream petroleum engineering so as compared to those in the US who were
that it continues to train the workforce needed more neutral in that regard. Older participants
to sustained production from the increasingly in the age 55 to 74 years groups reported
challenging reservoirs. to be more prepared to tackle these topics
We explored the variability of the responses compared to those in the age 35 to 54 years
by demographic groups, and while some of groups.
the variations do not reveal a “statistically
significant” variation, we highlight in this article Acknowledgment
those variations that do (Table 2). Some of the The survey results used in this paper were acquired
highlights include: by SPE’s Research Team at the request of the SPE
• On the prospect of fossil fuel production Education and Accreditation Committee in 2022.
becoming irrelevant in 30 years, there was The authors thank the SPE Research Team for
stronger disagreement with this statement granting permission to analyze and publish the
from male compared to non-male participants survey results. We specifically thank the SPE staff
and from the US compared to Middle East and members that made it possible to conduct this
Northern Asia Pacific regions. work, namely Mahesh Jayaraman and Alyson Polsky;
• On the energy transition being “just talk,” there we also thank members of the SPE Education
was more disagreement with the statement and Accreditation Committee for their input,
reported by older participants in the age 55 to and the Petroleum Engineering Department
74 years groups, compared to those in the age Head Association for contributing feedback and
35 to 44 years groups. participating in distributing the survey. JPT

jpt.spe.org 29
FEATURE | PE Education of the Future

AUTHORS
Mashhad Fahes is associate Gasham Zeynalov is associate
professor at the Mewbourne professor at the Petroleum
School of Petroleum and Engineering Department,
Geological Engineering at Baku Higher Oil School.
the University of Oklahoma. His research and education
She holds a PhD degree in career are associated with
petroleum engineering from reservoir characterization
Imperial College London and a BSc degree in and petroleum geoscience. He was a member
physics from the Lebanese University in Beirut. of the SPE Education and Accreditation
Her research spans experimental and analytical Committee in 2019–2022 to assess and make
exploration of the fundamentals of flow in recommendations on curriculum and education
porous media including studying the factors in petroleum engineering. He can be reached at
contributing to enhanced oil recovery using gasham.zeynalov@bhos.edu.az.
low‑salinity waterflooding. Fahes served as chair
Daria Karasalihović Sedlar is
of the SPE Education and Accreditation Committee
full professor at the University
(2020–2022). She serves as associate director
of Zagreb, faculty of Mining,
for OU ELEVATE, an NSF ADVANCE research
Geology, and Petroleum
grant (2022–2027).
Engineering. She holds a
Raffie Hosein was former PhD degree in petroleum
head of the Department of engineering. Her scientific
Chemical Engineering at research relates to energy economics,
the University of the West natural gas sector management, geothermal
Indies (UWI) in Trinidad and energy potential assessment, and CCUS policy
Tobago. He is coordinator of and development strategies. She is a member of
the MSc Reservoir Engineering the Council for Energy Transition of the President
Program and professor of petroleum of the Republic of Croatia and an International Gas
engineering at UWI. Previously he worked as Union member. As an SPE student faculty adviser
a petroleum engineer with the Ministry of and SPE Education and Accreditation Committee
Energy and Energy Industries in Trinidad, as a member, she was involved in numerous
senior associate professor in the Department of SPE projects.
Petroleum Engineering at Texas A&M University
in Qatar and as a consultant for Schlumberger
NExT training School. He received his BSc, M.Phil,
and PhD degrees in petroleum engineering from
UWI. His current area of research is CCUS. He
is a registered CEng MEI Chartered Petroleum
Engineer with the Energy Institute of London and
a Fellow with the Institute of Materials Minerals
and Mining also of London.

30 JPT | December 2023


FEATURE | PE Education of the Future

Manish Srivastava currently Glen Paul Willhite passed


works as specialist in well away on 15 December 2022.
integrity at ADNOC Offshore, He was a former Ross
Abu Dhabi. He has over 30 H. Forney Distinguished
years of upstream experience Professor of Chemical and
in workover, well completions, Petroleum Engineering at the
well operations, and well integrity. University of Kansas and taught
He has worked in national oil companies in India, at the university for more than 50 years before
Kuwait, and Abu Dhabi. He serves in three SPE retiring in 2019. He served on SPE’s Education and
committees—WITS, Membership, and Education Accreditation Committee during the periods of
and Accreditation. He holds a bachelor’s degree 1982 to 1985 and 2020 to 2022. He held a BS in
in mechanical engineering and a master’s degree chemical engineering from Iowa State and a PhD
in finance. in chemical engineering from Northwestern.

Gary Swindell is a consulting Dr. Lori Anderson Snyder is


reservoir engineer with professor of psychology at
nearly 50 years of experience. the University of Oklahoma.
Based in Dallas, Texas, She received her BA in
his areas of focus are human development and
reserve estimation, property social relations from Earlham
evaluation, and general reservoir College and her MS and PhD
studies. He holds a master’s degree degrees in industrial/organizational
in petroleum engineering. He can be reached at psychology from Colorado State University. Her
gswindell@yahoo.com. research focuses on the application of psychology
to the workplace, with a particular focus on the
Nikolaos C. Kokkinos is
experiences of underrepresented and marginalized
associate professor at the
students and faculty in higher education. She
International Hellenic
currently serves as director of an NSF ADVANCE
University (IHU), Greece.
Institutional Transformation award and principal
He is the director of the
investigator of an NIH MIRA award.
Petroleum Institute at IHU,
Kavala, Greece, and he is the
program director of MSc in oil and
gas technology at IHU. Kokkinos serves as the
president of the SPE Kavala Section (Greece). He
can be reached at nikokkinos@mwpc.gr.

jpt.spe.org 31
FEATURE | Drilling Technology

AI, INFLUENCERS, AND GRIT:


How Apache’s 8-Year Quest
To Build Its Own Drilling Advisor
Achieved Full Adoption
TRENT JACOBS, JPT Senior Technology Editor

Source: Getty Images.

W
hen oil prices tumble, upstream a restructuring is now a subsidiary of APA Corp.,
research and development projects was among a small cadre of operators working at
are among the first casualties. the fore of automated drilling technology.
Many are put on the shelf. Few As a first adopter, Apache had gone so far as
are ever taken off. to develop a newbuild automated rig design for its
Then there’s what happened at Apache Corp. onshore shale fields in Texas.
More than a decade ago, the Houston-based Then in mid-2014, crude prices plummeted
independent oil and gas producer, which following nearly 60% over a 7-month period. The heady days

32 JPT | December 2023


FEATURE | Drilling Technology

of $100/bbl oil were replaced by the era of “lower decisions offered by the system that deliver
for longer,” derailing Apache’s ambitious plan to the improvement.”
build its pioneering prototype. Apache has shared several papers about the
That could have been the end of the story. various components of the advisory program over
But less than a year after the ambitious capital the years but the most recent offers a holistic view
project was scrapped, something else emerged of the strategy that led to companywide adoption.
in its place. While AI-based automation was out, Of the dozens of takeaways it offers, some of
Apache’s drilling team was given a chance to the biggest follow.
develop the next best thing: an AI-based drilling
advisory system. Advisory Now, Automation Eventually
“We saw that there was at least a small Despite scaling down, Behounek said the
opportunity to do something more with our rig overarching goal of the advisory initiative was
data—that 1-Hz real-time data—by combining to create something that could pave a path to
it and mashing it up with contextual data rig automation.
so that it could be something useful,” said “We did not want to give up on that dream,”
Michael Behounek, a former director of drilling, he shared while explaining that this meant
completions, and workover performance and making similar considerations in developing an
leader of the project for Apache where he spent advisory system as one might take in building an
the past 13 years before taking early retirement. automated system.
Now a managing partner of an upstream digital Illustrating the parallels, Behounek said trials
consulting startup called Emerja, Behounek spoke done more than a decade ago by Apache showed
at the recent SPE Annual Technical Conference early automated rig systems could manage
and Exhibition while presenting SPE 215132. certain repetitive tasks such as drilling a few
The paper outlines how after 8 years that stands of pipe.
small opportunity turned into a 10% year-over- But move that same rig to a different geology,
year reduction in drilling costs. The system, a or lose a data channel or two, and that was no
presumed multi-million dollar value creator, was longer the case—ruling out repeatability and
adopted across all of Apache’s contracted rigs in thus scalability.
2018, playing an increasingly important role in Addressing this crucial drawback, Apache
the drilling of more than 1,700 wells across a wide landed on Bayesian network modeling, which is
spectrum of geologies. This track record spans nine one of the most tried and true AI techniques.
onshore and offshore basins, with deployments of Used in everything from Mars rovers to your
the system in the Permian Basin, Egypt, Canada, email spam filter, Bayesian networks tie together
offshore Suriname, and the North Sea. any number of individual models to deliver a
Behounek said most of the reported cost probability of an event happening or not. These
savings stem from the models’ ability to trim rig use cases and many more are credited to an ability
time by predicting problems that would keep to navigate uncertainty in the face of poor or
drillers from staying on bottom and turning to incomplete data.
the right. The thinking within Apache was that since
That said, the paper, which is coauthored these qualities have made the Bayesian approach
by Apache’s software partner Intellicess Inc., well suited for automation, it would also be ideal
emphasizes that “the system only enables for an advisory system.
the opportunity—it is the field personnel Over time, the strategy delivered 10 different
and engineers taking the proper actions and physics and machine learning-based models.

jpt.spe.org 33
FEATURE | Drilling Technology

Value
generated
per rig

Operational cost per rig

10% reduction in cost year after year,


2015 2018 2022 attributable to this project

Real-Time Rotary Torque and Hole Kick and Lost Slide


Data Rig State Drilling Real-Time Drag/ Washout Cleaning Circulation Drilling Bit Pull Stuck Pipe
Quality and ILT Dysfunction Hydraulics Overpull Prevention Monitor Prevention Advisory Advisory Advisory

2015 2016 2017 2018 2019 2020 2021 2022 2023

Figure demonstrates the extensibility of the Bayesian network and the savings the operator attributes to it.
Source: SPE 215132.

One helps drillers avoid stuck pipe issues, while Be ‘Rig Centric’
another predicts mud motor stalls to prevent Running models on the edge was a central
failures that would force the driller to trip out pillar of Apache’s “rig-centric” strategy since, as
of the hole. Behounek expressed, it was the best way to ensure
The paper also highlights that Bayesian actionable insights would be delivered to the rig
models are easily translated to drillers thanks to crew with the consistency and urgency that drilling
a graphical architecture that can be visualized to operations demand.
show various inputs and their relationships. By An alternative would be to rely on cloud-
contrast, it states, “Black box models were typically based approaches but they are subject to latency
difficult to explain to the rig crew and had a lower issues and even a slight delay in data transmission
probability of acceptance.” can lead to suboptimal drilling decisions and
Aside from the obvious advantages of early increased operational risks. The drilling expert
warnings, key to understanding Apache’s roadmap also argued that real-time operator centers staffed
is to see the advisory tool as a central nervous with human advisors are more vulnerable to
system for the rig that rapidly detects unwanted budget cutbacks during downturns than low-cost
events such as stuck pipe, washouts, mud autonomous edge devices.
losses, etc. To further satisfy its need for speed, Apache
This extends well beyond the traditional chose to rely solely on the rig’s surface sensor
concept of “rig state” to paint drillers a far more data which transmits once a second rather than
complete picture of rig and well conditions. The on downhole tools and sensor packages that
implications are summed up in the paper: “As the can take minutes to send information uphole.
drilling advisory system matures, it lends itself This in turn led to an acceleration of the system’s
very nicely to being able to provide full situational scalability across all rig types.
awareness at the rig site. The drilling operation
is now akin to process control, and the next step Choose Vendor-Neutral Tech
naturally leads to supporting robust automation Also key to scalability was the idea that the advisory
at scale on any rig.” system had to be software and hardware agnostic.

34 JPT | December 2023


FEATURE | Drilling Technology

This idea of interoperability has become provider, NOV, which will incorporate the drilling
a mounting priority for many digital initiatives advisor into its own real-time rig platform. The
in the oil and gas industry which in years past agreement frees the operator from the burden of
have been stymied by rig systems that are either supporting and maintaining the advisory software
incompatible, or for proprietary reasons, costly to going forward.
configure—a deep-rooted business tactic known as
“vendor lock.” Find the Influencers
For its SCADA system, needed to aggregate As it turns out, the oil patch is not a whole lot
rig data and feed it to the models, dozens were different from the world of social media. According
assessed by Apache, but in the end, Behounek said to Behounek, just like a social network, on the rig
only one proved to be plug-and-play and easily “you have influencers that will make a difference—
configurable to the various data formats used on a key driller that other drillers listen to.”
different rig types. The strategy, then, is straightforward: Engage
That SCADA software, developed by Tatsoft, is these well-thought-of drillers, along with their
run on a $2,000 ruggedized computer along with counterpart wellsite supervisors and drilling
the third-party modeling software from Intellicess. engineers, to champion the new initiative.
In addition to avoiding big-ticket development Behounek cited research showing that
cost, this simple package meant “we had something winning over just 10 to 15% of the workforce is
that could talk to any process control system,” sufficient to tip the scales toward widespread
Behounek said. acceptance. To find these critical influencers,
Apache used internal surveys and assessed
Build Some and Buy Some personnel based on their influence and their
These technology choices reveal that in answering receptiveness to innovation.
the quintessential digital transformation question Anyone at the top of the scale was introduced
of whether to build or buy, Apache settled on both. to the advisory system first and from that point
The operator found that buying the technology on “managed closely, meaning that you pay
from a developer would have cost three to four attention to them,” explained Behounek.
times the project’s approved funding. For those lower on the scale, the approach
On the other hand, as everyone on the team was to keep them informed and track their growing
understood only too well, in-house projects not interest, which as the paper notes, “can be a
tied directly to the next barrel of oil may not time‑consuming process but increases the odds
survive the next downturn. of the change being accepted.”
Behounek said “that is always a danger for In a similar vein, the executives that were
these types of projects” which is why Apache settled interested enough to finance the project in the
on a hybrid model; It would lead the development first place must be convinced to remain interested
but leverage the core skills of its vendors. for the duration. Up until the 10% annual cost
The paper also points out that Apache was savings were realized, Behounek described the
aided by access to university researchers and effort of maintaining support in the C-suite as “a
interns, all of whom ultimately “helped deliver hard-fought battle.”
the project at a very low cost” and “increased His advice to anyone starting a long-term data
confidence that the project would be delivered project: “If you go into this, realize that you’ve
on budget and schedule.” got to earn your stripes every day and you must
As a bookend to the buy vs. build topic, have that attitude to be able to help [the project]
Apache has inked a contract with a chief service continue to progress forward.”

jpt.spe.org 35
FEATURE | Drilling Technology

High

Drilling
1. Review 2. Identify Engineer Keep Satisfied Manage Closely
project goal stakeholders

Power / Influence
Wellsite
Supervisor

Driller

Monitor (Low Effort) Keep Informed


3. Review Power,
4. Manage
Influence and
stakeholder
Interest of Each
expectation Low
Stakeholder
Low Interest / Engagement Level High

High High
A E A E

Keep Satisfied Manage Closely Keep Satisfied Manage Closely

Power / Influence
Power / Influence

G
F I I F G

B D
D B
Monitor (Low Effort) Keep Informed Monitor (Low Effort) Keep Informed
C C
H H
Low Low
Low Interest / Engagement Level High Low Interest / Engagement Level High

Surveys were used to help identify key rig personnel and actively monitor their interest in technology adoption over
time. Source: SPE 215132.

Go Small, Have Grit Apache-led team’s ability to maintain focus despite


As notable as any other feature of Apache’s the effects of natural turnover and the pressures
advisory project is the fact that you could fit imposed by further industry downcycles.
the entire development team into a small Behounek chalked it up to a blend of
conference room. perseverance and passion—a tandem otherwise
At no point in time—both internal to Apache known as “grit.”
and among its software development and “Now, grit all on its own isn’t going to guarantee
SCADA partners—were there more than eight the success of the project,” he said, “but successful
individuals directly involved. projects have it.” JPT
Behounek said this was deliberate and backed
by research from other industries showing that FOR FURTHER READING
small squads are especially effective at pushing
big innovation projects across the finish line. In his SPE 215132 The Secrets to Successful Deployment
words, “We didn’t discover that, we just followed it.” of AI Drilling Advisory Systems at a Rig Site:
There was something else that while truly A Case Study by Michael Behounek, Apache Corp.,
intangible proved to be just as critical to the and Pradeepkumar Ashok, Intellicess Inc.

36 JPT | December 2023


FEATURE | Aerospace and the Oil Field

Common Ground:
The Unique Synergy
Between the Oil Field
and Aerospace
BLAKE WRIGHT, Technology Editor

The tool changer that OSS developed for DARPA’s Remote


Servicing of Geosynchronous Satellites program. Source: OSS.

38 JPT | December 2023


FEATURE | Aerospace and the Oil Field

T
hough disparate locations, outer NASA’s Artemis program is to try and find water
space and the oil field have near the lunar South Pole.
much more in common than one Polar Resources Ice Mining Experiment-1
might think. Both can be taxing on (PRIME-1) will be the first in-situ resource utilization
operations and often redefine the demonstration on the moon. For the first time,
idea of an isolated and, at times, hostile work NASA will robotically sample and analyze for ice
environment. Harsh atmospheric conditions and from below the surface. PRIME-1 will use TRIDENT
wide-ranging pressure regimes call for unique (The Regolith and Ice Drill for Exploring New
technological applications and operations to Terrain) to drill in a single location at a site with
achieve the best performance and results, whether a high likelihood of having water, whether in liquid
it’s the gravitational and meteorological challenges or ice form.
of another planet or the crushing pressures TRIDENT was developed and supplied
and changing meta-ocean conditions of the by Honeybee Robotics, which also supplies
deep offshore. geotechnical tools and sensors, among other
Despite the obvious differences, operating tech, to the oil patch.
in both the terran oil field and the blackness The system, to be integrated into VIPER, NASA’s
of space offer hurdles that can be cleared by first robotic moon rover, will drill about a meter
similar means. Shared technologies between the below the surface, each time bringing up samples
two industries have been around for decades that NASA will analyze with a mass spectrometer.
and center around disciplines like automation, The launch of the NOVA-C, which carries the
robotics, and remote sensing. PRIME-1, was previously delayed. At press time, the
The National Aeronautics and Space payload was due to blast off on board Space X’s
Administration (NASA) itself has dabbled in Falcon 9 rocket in early 2024. NASA said in October
oilfield studies, especially when it comes to the VIPER will reach its destination at Mons Mouton
greenhouse gas emissions and their impact near the lunar South Pole in November 2024.
on the atmosphere. In 2021, the agency’s Jet
Propulsion Laboratory, along with the University Oceaneering Space Systems
of Arizona and Arizona State University, completed Offshore service specialists Oceaneering has
a study to identify methane super-emitters in had an outer space division—Oceaneering Space
the Permian Basin. Systems (OSS)—for almost 4 decades. During the
The month-long, airborne study concluded 1980s, then Chief Executive John Huff saw the
that fixing the worst leaks identified in the area’s potential in a technology transfer between what
infrastructure could cut methane emissions the company was doing offshore and some of the
by 55 tons an hour, equivalent to 5.5% of the challenges being tackled in the aerospace industry.
US Environmental Protection Agency’s estimates The company formed OSS and has worked directly
of all methane emissions from hydrocarbon with NASA and its contractors to adapt and mature
production across the entire US. The study pointed technology, to include oilfield technology for use in
to malfunctioning equipment as the likely culprit outer space.
for the 123 sources found. “Oceaneering was involved in the early Hubble
Conversely, NASA has also tapped into servicing missions—I, II, and III—developing tools,
oilfield technology for some of its planned assisting in the planning and the execution of those
drilling operations on the moon. It will be the missions back in the early 1990s,” explained Carl
first such operation on any planetary body outside Walz, former astronaut and business development
of the Earth. One of the earliest directives of consultant for OSS.

jpt.spe.org 39
FEATURE | Aerospace and the Oil Field

NASA also wanted the ability to grab hold of


hardware so it could be securely moved around,
either by crew members or by robots.
“From that came tooling that allowed
astronauts to hold on to big pieces of equipment
and move those around,” said Walz. “Even though
they’re weightless, these large components still
have inertia, so you have to provide a certain
amount of torque to move some of these
big packages that are 300 to 500 pounds on
the ground.”
Another thing space agencies were keen on
was tool changers, like those typically found on
A post flight view of Artemis 1 with the Crew Module remotely operated vehicles (ROVs) in offshore
Uprighting Bags, developed by OSS, deployed.
operations. The ability to change tools was
Source: OSS.
appealing as a potential time saver and something
that could eliminate extra mobilizations.
“Oceaneering continued with that as we “So basically, servicing of geosynchronous
supported space shuttle missions and started satellites—those satellites that can’t be reached by
planning for the International Space Station astronauts—will soon be accessed with robots,”
(ISS). Oceaneering looked to the oil and gas said Walz. “They’re developing the capabilities
sector for some of the tooling that was used to have robots perform work, changing tools as
for under water since there’s a tremendous necessary to accomplish the overall task. We took a
similarity between operating under water to do tool changer design from ROVs and then modified
maintenance and operating in space. In fact, we that to meet the stringent aerospace requirements
train spacewalking astronauts under water in as published by the Naval Research Lab in
the Neutral Buoyancy Lab at Ellington Field in Washington, DC.”
Houston,” he said. Walz added, “We were also looking at how to
“One of the things that NASA was interested use stereo cameras for spacecraft orientation,
in was a torque reaction fitting, and those are on and we’ve taken that to the ROV world to allow
rigs and various underwater structures. NASA took very precise maneuvering to conduct stabs on
what’s called a microconical fitting and adapted underwater structures. They can autonomously (or
it for use on the ISS with the idea that astronaut near autonomously) run a probe into an interface
crews would be doing assembly and maintenance, there. OSS has provided those kinds of algorithms.”
with the thought that eventually robots would Oceaneering has taken some space-borne
be doing it as well. It’s very similar maintenance,” software used for robotics and brought it to
Walz said. the ROV community. That has resulted in the
The microconical fitting became one of two ability to command the position and orientation
standard fittings used on the ISS. The other fitting of the end of an ROV arm rather than having to
was developed by a Canadian company. Each command each individual arm joint separately,
fitting is used about equally, so about half of the making it much easier and faster to complete a
replaceable equipment outside the space station robotic task.
has the microconical fittings and the other half For the future, NASA is looking at a new
have the Canadian fixtures. generation of tools for lunar exploration, where

40 JPT | December 2023


FEATURE | Aerospace and the Oil Field

OSS sees as an opportunity. There is also the it can take the liftoff in a rocket. Everything that
Gateway—basically a space station that will he was saying clicked for me. We could make a
orbit the moon. business off this.”
“There might be opportunities there as NASA The company’s initial product, FLOW, is an
develops servicing plans for those platforms,” said at-well optical imaging solution for individual
Walz. “Right now, they’re still trying to figure out wellheads that reports real-time mass and
how they’re going to service externally. Once they volumetric flow rates of oil, water, and gas phases
do, Oceaneering will be there to provide robust in multiphase flows. It is specifically tailored to
solutions to meet NASA’s needs. There is also a lot obtain accurate flow compositions in individual
of interest in satellite servicing and debris removal wells with high water-cut flows, high gas-content
commercially. We’re looking at growing our tool flows, and variable pressure and flow types, do
changer business into those areas.” this cost-effectively, even in stripper wells, and
ultimately replace test separation equipment.
Impossible Sensing Energy Torre said, “Our vision at the very beginning
Based in Calgary, Alberta, Impossible Sensing was to assist with this energy transition.” How
Energy (IS Energy) is the oil and gas technology can we accelerate it? What can we do to help? We
subsidiary of St. Louis-based Impossible Sensing—a started looking at solutions that potentially could
startup that has made a name for itself in optical eliminate emissions. Our customers immediately
sensor technology. Founded in 2016, the company saw two things. They saw its potential for reducing
is turning its made-in-space sensing technologies emission, but they also saw a potential low-cost
into climate solutions on Earth. optimization tool. That’s how the FLOW meter
In 2019, Impossible Sensing founder and NASA came to be.
and SETI Institute principal investigator, Pablo “Our initial objective was to eliminate test
Sobron, traveled to Canada to look for customers separation equipment. Separators are a known
for the sensing technology he co-created to source of greenhouse gases because they contain
detect signs of life with Mars Perseverance rover. valves and actuators. Those valves and actuators
It was there he met Ariel Torre, a 26-year oilfield require either compressed air to actuate them,
veteran who spent most of his career at SLB and or you need to generate electricity to make them
Precision Drilling. work. But the easiest way is to use natural gas
The pair struck up a conversation that ultimately from the well itself, which is readily available at the
led to the technology IS Energy is now bringing to wellhead, and which ends up being vented into the
market. Proven for otherworldly application, the atmosphere every time a valve is open or closed.
technology had been developed to comply with That was the problem. We wanted to eliminate
several constraints: it needed to be autonomous, these valves and actuators by eliminating the test
cannot have an operator, cannot be maintained, separators completely,” he said.
needed to work for multiple years, needed to be low Because the technology put into the
power, and needed to be cost effective. FLOW meter can locate and identify different
“Everything he was saying was what the hydrocarbon molecules, oil sands producers in
industry is looking for; these extremely demanding Canada showed interest in the offering to locate
constraints made it perfect for the oil field,” said and recycle natural solvents and reduce the
Torre. “The other one was the environment. They amount of steam used in steam-assisted heavy
designed for an environment that is literally out of oil production. Solvent expense makes their use
this world—extreme temperatures on both ends costly, but if producers had a way to identify,
of the scale. It needed to be rugged enough so isolate, and recycle them, it could significantly

jpt.spe.org 41
FEATURE | Aerospace and the Oil Field

said Torre. “One of the things that we identified


is that we can get the resolution needed from
much lower altitude than low-orbit satellites. This
can be possible if we stay at the stratospheric level
and have systems in there that can detect your
field. Another problem with satellites is that the
Earth keeps rotating, and the satellites are moving
at different speeds. You only get coverage a few
hours a day. Because they are low-cost satellites,
they’re very small and equipped with mainly
passive systems. We are designing a system that
will allow the satellite to stay stationary with the
field. Another big problem for producers here in
the north is that the passive systems don’t work
IS Energy’s FLOW Mark-II prototype installed on a
wellhead in December 2022. Source: IS Energy. very well when there’s snow on the ground, which
is most of the time. We believe this will be a much
better way to get coverage over an entire field.”
reduce the amount of natural gas required to IS Energy received a grant from NASA this year
produce steam and, therefore, reduce their for technology transfer into civil applications. The
environmental footprint. company continues to adapt the Mars technology
The company’s FLOW meter won top prize to additional terran applications. For example,
and $45,000 from among a group of more than BADGER, which is under development, is an on-
50 global competitors in a challenge organized site monitoring, accounting, and verification of soil
by Plug and Play Alberta to spur development carbon service matured for the US Department
of a solvent detection tool for use in oil sands of Energy and designed to replace costly and
production. A coalition of the six biggest oil logistically problematic soil coring and offsite
sands producers—the Pathway Alliance—backed analysis with an on-site robotic service. JPT
the competition.
Another use being explored by IS Energy is FOR FURTHER READING
airborne sensing for the detection of fugitive
emissions. Satellites are cheap and can cover SPE 215057 Leveraging Autonomous Moon-Based
large areas, but they are not very accurate. Rovers for Multiple, Near-Term Applications in
Planes are more accurate, but costly. Workers Field Operations by J. Cyrus, V. Wagner,
with handheld sensors carry the same problem. and J. Kenrick, Lunar Outpost, Golden, Colorado.
The idea of adapting the technology to an TRIDENT Drill for VIPER and PRIME1 Missions to
airborne emissions detection solution gave birth the Moon by K. Zacny, P. Chu, and V. Vendiola
to AIRYS—a combination of imaging and laser- et al., Honeybee Robotics.
based spectroscopy adapted from remote sensing SPE/IADC 204108 Evaluating Data-Driven
technologies being developed for NASA. Techniques To Optimize Drilling on the Moon
“You need something that can actually get a by D.R. Joshi, A.W. Eustes, and J. Rostami et al.,
large coverage, but that gets good resolution,” Colorado School of Mines.

42 JPT | December 2023


FEATURE | Liquefied Natural Gas

FRAGILE EQUILIBRI
Balancing LNG Trade and Marke
JENNIFER PRESLEY, Senior Technology Editor

L
iquefied natural gas (LNG) has been in cold molecules across oceans to eventually power
global energy supply discussions for industries or heat homes.
decades. Geopolitical tensions, however, So strong are the fundamentals of the LNG
recently elevated it from a bullet point to industry, for example, that they were cited as a
the entire conversation. primary driver in the conversion of one of the
Rarely does a day pass without mention of largest pure-play US-listed shipping companies—
signed long-term LNG purchase agreements or Capital Product Partners led by Greek shipowner
LNG terminal construction projects advancing, one Evangelos Marinakis—to a pure-play LNG
day making it possible to transport the curiously shipping company.

44 JPT | December 2023


FEATURE | Liquefied Natural Gas

IUM
the remaining 10 newbuild vessels scheduled for
delivery through March 2027.
Jerry Kalogiratos, chief executive of Capital
Product Partners, said the acquisition was

et Risks
transformative, noting that the partnership
“expects our contracted revenues to increase by
87% percent to $3.1 billion, our revenue weighted
charter duration to 7.2 years as of the closing date,
and the average age of our LNG fleet to decrease
to 3.2 years by the time all LNGCs have been
delivered in 2027.”

LNG Market Overview


Events like the Russian invasion of Ukraine in
February 2022 and the sudden loss of Russian
pipeline gas supplies upended global energy
markets. European buyers turned to LNG imports
to meet demand. According to Wood Mackenzie,
the current conflict in Israel/Gaza, possible pipeline
sabotage in the Baltics, and the threat of fresh
strike action at Australian LNG facilities all pushed
spot prices up 35% through October.
In a November blog post, Wood Mackenzie
noted that a record 200 mtpa of new supply is
under construction as “players bet big on Asia’s
push to reduce its dependence on coal and
Europe’s need to replace Russian gas.”
While the proliferation of LNG projects is
prompting concerns that there may be too
much LNG on the market once these projects
are completed, this is not the case, according to
Source: Suphanat Khumsap, Getty Images. Wood Mackenzie.
“Increased supply availability will bring prices
down and boost demand growth,” said Gavin
Thompson, vice chair of Europe, Middle East, and
In addition to changing its name to Capital Africa, and Massimo Di Odoardo, vice president,
New Energy Carriers, the partnership is selling off gas and LNG research for Wood Mackenzie, noting
its modern fleet of 15 Neo-Panamax and Panamax that the market will need another 60 mtpa of new
container vessels. LNG by 2033.
It will spend $3.13 billion to purchase 11 “Much will hinge on sustained economic
newbuild LNG carriers (LNGC). According to an growth, driving increased demand across
announcement on 13 November, the first of the emerging markets in Asia. China’s LNG demand
new vessels arrived in October 2023. The company will increase by 12% in 2023, and with 50 mtpa
already had seven LNG carriers in its fleet, with of LNG contracted over the past 2 years, imports

jpt.spe.org 45
FEATURE | Liquefied Natural Gas

Global LNG Imports (net of re-exports) of open dialog to help ensure energy security
Million tonnes
and transparency.
450
Nov. 1–Dec. 31 Jan. 1–Oct. 31 390 The organization found that from 2019 to
400
360 2022, global LNG markets exhibited strong growth,
337 334
350 65
59 expanding by 16% from 337 to a record 390 mtpa.
300 57 56
325 317 It noted the growth was fueled by increased export
301
250 280 278 capacity, primarily in the US, and the surge of LNG
200 demand in Europe.
150
IEF expects global LNG trade to grow to
500 mtpa in 5 years but cautioned that “LNG
100
markets remain fragile due to strong demand
50
amidst growing geopolitical risk.”
0
2019 2020 2021 2022 2023 These are a few of the takeaways in a
Source: IEF, SynMax Leviaton (accessed 1 November). November report by IEF and SynMax, a geospatial
data intelligence company.
will double by 2030. LNG demand in South and In its report, IEF noted that natural gas markets
Southeast Asia will also grow twofold by this time,” gradually rebalanced due to a combination of
they said. well‑timed policy measures, the effectiveness of
The need also continues in Europe, where, open market dynamics, and a relatively warm
despite the overall decline in demand for gas, 2022–2023 heating season.
pipeline imports from Norway and Algeria are “LNG growth has steadied in 2023, with global
anticipated to decline beyond 2025, meaning LNG trade levels through the end of October coming in
imports will not peak until around 2030, according just marginally below levels from the same period
to the UK-based energy market analysis firm. in 2022,” the report said.
These points were echoed by the International According to IEF, supply and demand remain
Energy Forum (IEF), an intergovernmental highly concentrated.
organization of energy ministers from 72 countries. “The global LNG trade network connects
Headquartered in Riyadh, Saudi Arabia, IEF around 20 exporting markets with 48 importing
was established in 1991 as a neutral facilitator markets. In 2022, 50% of the world’s LNG imports

Share of 2022 Global Imports Share of 2022 Global Exports

Other, 10% Other, 11%


Belgium, 2% Japan, 20% Qatar, 22%
Algeria, 2%
Pakistan, 2%
PNG, 2%
Thailand, 2%
Oman, 3%
Italy, 3%
Turkey, 3% Nigeria, 4%
Netherlands, 3%
Malaysia, 7%
Spain, 4%
China, 17%
UK, 5%
Russia, 7%

India, 5%
Australia, 22%
Taiwan, 6% South Korea, 13%
France, 6% USA, 20%

Source: IEF, SynMax Leviaton (accessed 1 November).

46 JPT | December 2023


FEATURE | Liquefied Natural Gas

Annual North American liquefied natural gas export capacity by project (2016‒2027)
billion cubic feet per day
25 history forecast
Port Arthur
Woodfibre LNG
projects under Rio Grande
20
construction Energia Costa Azul
Canada LNG Canada
Mexico Plaquemines
15 Corpus Christi Stage III
United States
Golden Pass
Fast LNG Altamira/Lakach
10
existing export capacity Calcasieu Pass
(all from United States) Freeport
Elba Island
Cameron
5
Corpus Christi
Cove Point

0
Sabine Pass
2016 2018 2020 2022 2024 2026
Source: US Energy Administration.

were focused in Japan, China, and South Korea, for 56% of total US natural gas exports. The EIA
while the EU and UK accounted for an additional expects LNG exports to increase to 13.3 Bcf/D
26%. Similarly, 65% of all exports came from Qatar, when two new LNG export projects—Golden
Australia, or the US, while Russia contributed an Pass LNG Trains 1 and 2 and Plaquemines LNG
additional 7%.” Phase 1—come on line in 2024.
China is set to overtake Japan as the world’s The EIA said it expects North America’s LNG
largest LNG importer in 2023, with IEF attributing export capacity to expand to 24.3 Bcf/D in 2027,
this to the relaxing of the country’s strict COVID-19 up from today’s 11.4, as Mexico and Canada place
policies, reduced hydropower output, and the their first LNG export terminals into service, and
potential for more robust economic growth. the US adds to its existing LNG capacity. By the end
Japan, it said, “witnessed a substantial 13% of 2027, LNG export capacity will be estimated to
decline in gas consumption in the first ten months grow by 1.1 Bcf/D in Mexico, 2.1 Bcf/D in Canada,
of 2023. This reduction was driven by lower and 9.7 Bcf/D in the US from 10 new projects
electricity consumption and increased nuclear across the three countries.
availability, which saw a remarkable 47% year-on-
year rise in output during the first half of 2023.” Change in Trade Flows, Supply Risks
IEF determined that the US will become the Global LNG markets remain in a precarious state,
largest LNG exporter in 2023, surpassing Qatar influenced significantly by the growing specter
and Australia for the first time, noting that exports of geopolitical risks. Geopolitics has transcended
have surged by nearly 135% since 2019. Europe being a mere backdrop; it now stands as the most
was the key market for US LNG, with 66% of total influential force shaping LNG trade flows and
US LNG exports heading to European ports in 2022 investment patterns.
and 2023, as compared to only 36% in 2021. LNG IEF highlighted how Russia’s invasion of
exports to Asia, however, fell to 26% of all US LNG Ukraine structurally transformed natural gas
exports from 46% in 2029. markets, leading to a delicate balance. Europe’s
According to the US Energy Information gas markets underwent structural changes due to
Administration (EIA), the 2022 US LNG exports reduced Russian pipeline gas exports and surging
averaged 10.59 Bcf/D to 34 countries, accounting LNG imports.

jpt.spe.org 47
FEATURE | Liquefied Natural Gas

“LNG now acts as a baseload rather than a that any impossibility of Qatar exiting its gas could
marginal molecule. LNG’s share in EU gas demand lead to unprecedented volatility in spot LNG prices.
has risen from an average of 12% in the 2010s to
more than 50% in 2023,” the report said. “Over the Recommendations
medium term, Europe’s regasification capacity is A significant aspect of the report is recognizing
expected to grow by nearly 48% by 2030 to more that natural gas production is moving toward
than 294 mtpa. This will enhance the region’s decarbonization and lowering methane emissions.
buying security, but the utilization of the import This shift aligns with broader environmental
terminals may vary widely.” goals and provides flexibility to accommodate
The impact on Russian natural gas production renewable energy sources while ensuring
is significant, plummeting by 21% from nearly energy security.
800 billion m3 in 2021 to an estimated 600 billion m3 Mitigating methane emissions, responsible
in 2023, a 14-year low, according to IEF. for nearly 40% of anthropogenic emissions from
“China is the largest destination for Russian the energy sector, is highlighted as a crucial focus
LNG this year, absorbing about 31% of Russia’s area. Advanced technologies, including satellite
LNG exports (including substantial reloads from data, artificial intelligence, and modeling, are
Europe). The future of Russian flows will depend seen as essential tools for immediate action on
on domestic and international policies,” the report mitigation efforts.
said, adding that Western sanctions will likely IEF stressed the importance of close
impact investment in the country’s gas sector collaboration in mitigating emissions from the
and impede its ability to conduct maintenance gas supply chain, stating that reducing emissions
on LNG facilities. intensity requires investment in energy-efficient
“A reduction in Russian LNG flows could amplify equipment, methane mitigation technologies, and
volatility on the finely balanced global market carbon capture, utilization, and storage solutions.
until a wave of new supply enters the market Implementing a standardized monitoring,
after 2026.” reporting, and verification framework for
While gas balances have stabilized and growth greenhouse gas emissions was advocated as a
moderated in the current year, the landscape promising avenue to incentivize suppliers to tackle
remains fragile, with new and emerging risks on emissions and enable informed comparisons
the horizon. across supply sources.
Conflicts such as the Israel-Hamas war could As geopolitical uncertainties, supply
threaten the Strait of Hormuz and impact 23% of disruptions, and evolving market dynamics shape
global LNG flows. The strait is considered one of the industry’s landscape, stakeholders are urged
the most important choke points for LNG trade, to foster collaboration, embrace technological
with more than 90 Mt of LNG transported annually. advancements, and prioritize sustainability.
Qatar’s and Abu Dhabi’s LNG exports flow Navigating the fragile equilibrium of the
through the strait, with more than 75% of the LNG market requires a nuanced understanding
exports bound for Asia. of geopolitical shifts, market forces, and
According to IEF, Qatar controls 21% of global environmental imperatives, laying the foundation
supply and is a key regional exporter. It cautioned for a resilient and sustainable energy future. JPT

48 JPT | December 2023


TECHNOLOGY FOCUS

Reserves Management
David Gurney, SPE, Kuwait Foreign Petroleum Exploration Company

T
ime and time again, I meet industry
specialists who should have a detailed
“Often, however, the
knowledge of the Petroleum Resources understanding of PRMS
Management System (PRMS) and basics, application, or
handling uncertainty in the inputs for resource
assessment or to the rest of the evaluation work
reporting seems to
flow. Often, however, the understanding of PRMS be lacking.”
basics, application, or reporting seems to be
lacking. This year’s Reserves Management papers
are chosen to revisit some basics around both
reserves delineation and asset management. subsurface and surface. Uncertainty is inherent in
Paper SPE 210358 reminds evaluators to our business, though difficult to communicate, and
use multiple approaches (triangulation?) in we should do all we can to incorporate it correctly.
the presence of uncertainty to derive the best Also looking at the effect of uncertainty, paper
estimates for Proved Reserves, but this should SPE 213385 focuses on Monte Carlo simulation
apply equally to all resource assessment. It also for commercialization around well performance
stresses the requirement, sometimes overlooked, in unconventional settings, but its application can
to ensure that the approach/technology is proven be to any technical or commercial uncertainty.
and calibrated to work in the exact situation, both Too many people overly focus on precision (the

DAVID GURNEY, SPE, is an acquisitions and divestments adviser for the


Kuwait Foreign Petroleum Exploration Company. He has worked in
the upstream oil and gas sector for 35 years, starting as a geophysicist
with BP. Gurney has worked for a variety of operating and consulting
companies, including BG, PricewaterhouseCoopers, and Mubadala.
His areas of interest include economics, commercial analysis of gas
and liquefied natural gas, and transactions for major hydrocarbon
provinces, especially southeast Asia. Gurney is a member of the JPT
Editorial Review Board and has chaired and served on many SPE
David Gurney workshop committees, mostly for reserves and economics, over the
Acquisitions and Divestments Adviser past 20 years. He holds a BS degree in geology from St. Andrews
Kuwait Foreign Petroleum
Exploration Company University, an MS degree in exploration geophysics from Leeds
University, and an MBA degree from Cranfield University.

jpt.spe.org 49
TECHNOLOGY FOCUS

decimal places in the answer) but lose focus on


Recommended additional reading at OnePetro:
accuracy or usefulness of the work. Uncertainty
www.onepetro.org.
can lead to errors in the first, and certainly the
second, significant figure, thus invalidating all the
misleading precision. Analysis should model the SPE 209695
parameters to include the true state of knowledge. Can Reasonable Certainty Be Assessed
It seems ever more difficult to avoid From Disclosed Proved Reserves Revisions?
discussions of carbon capture and storage (CCS), by Enrique Morales, ISVA Oil and Gas Consultancy,
a major challenge facing the industry, especially et al.
when trying to monetize massive high-CO2 fields.
Paper SPE 214359 discusses how the Malaysian SPE 211458
authorities and Petronas seek to manage and An Algorithm for Calculating Incremental
incentivize CCS in their domain and achieve Production in an Integrated Asset Model
socially desirable goals with improved efficiency— by Peter Richard Paul Cunningham, Serafim, et al.
specifically, centralizing the disposal of CO2
through an organization taking the separated gas SPE 212826
from the producers. It creates efficiencies through Impact of Financial Assumptions on Economic
scale and targeted regulatory incentives that do Viability of Incremental Projects
not need to be applied to the direct producers. It by M.A. Mian, O&G Knowledge Sharing Platform
reminds me of how liquefied natural gas facilities
often are commercially separated from the SPE 209217
upstream to manage project financing and improve Probabilistic Reserves Categorization Using
project feasibility. Percentiles of a Single Probability Distribution
The recommended additional reading papers by M.A. Mian, O&G Knowledge Sharing Platform
delve further into PRMS disclosure details and
implications; how allocating volumes (and costs)
for incremental decisions can change the optimal
outcome; some more around how volumes and
costs flow through to economics and how this
can be an issue in complex fields; and, lastly, an
unusual proposal of uncertainty around the 1P, 2P,
and 3P values. Certainly, they remind the reader to
consider the effect of uncertainty on volumetrics
and categorization. JPT

50 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

Reliable Technologies Combine To Establish


Reasonable Certainty for Reserves Estimates

The Petroleum Resources Management System use of appropriate technologies that can lead to
(PRMS) and many regulatory agencies require what more-reliable estimates of reserves. However,
is termed “reasonable certainty” for Proved Reserves the SEC or the PRMS guidelines also seem to
estimates. The guidance provided by the PRMS or recognize that it might not be possible to prescribe
the US Securities and Exchange Commission (SEC) a definitive approach that could work for any
for establishing reasonable certainty is general set of circumstances. They broadly describe the
in nature because of the difficulty in explicitly framework for what constitutes reliable technology
describing all possible scenarios and also allows and how it can be used to establish reasonable
leeway to use new technologies in the future. The certainty. Operators have an obligation to use a
complete paper addresses the complex challenge scientific method to build a robust case to justify
of establishing reasonable certainty in reserves and categorization of volumes.
resource assessments and discusses how multiple
reliable technologies may be used in concert to Previous Research
establish reasonable certainty for reserves estimates Previous work reviewed how the industry, in the
through the flexibility provided by the PRMS. years from 2008 to 2016, had been using reliable
technologies for reserves estimates and how
Introduction industry practitioners were demonstrating and
The authors write that a common response to describing that these applications were consistent
many questions seeking clarification on reserves- with the SEC and PRMS guidelines. The material
related matters is that “it depends.” Likewise, surveyed by previous researchers can be grouped
regarding the question of what constitutes reliable into the following broad themes:
technology, the answer depends on the specific • Seismic applications, which establish water
circumstances and the data being considered. The contacts downdip of well controls and explore
use of reliable technology as a method to improve how seismic amplitude processes can be relied
certainty in the estimates of oil and gas reserves on to improve probability of geologic success
was formally recognized in the 2008 modernization • Dynamic simulations, which investigate when
of oil and gas reporting. The PRMS issued in 2007 reasonable certainty can be demonstrated
and further updated in 2018 also recognized the when simulation models are used
• Unconventional applications, which include
how reasonable certainty should be established
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 210358, “Establishing
Reasonable Certainty for Reserves Estimates by Using
For a limited time, the complete
a Combination of Reliable Technologies,” by Keshav
paper is free to SPE members
Narayanan, SPE, Peter Gale, SPE, and J.P. Blangy, SPE,
at jpt.spe.org.
Woodside Energy, et al. The paper has not been peer reviewed.

jpt.spe.org 51
TECHNICAL PAPERS | Reserves Management

when booking proved, undeveloped reserves • Seismic—Establishing reservoir continuity and


(PUD) away from well control direct hydrocarbon indicators
• SEC comment letters, which can require • Modeling and integration—Geological
registrant companies to more-clearly spell out modeling, material balance and reservoir
the demonstration of reasonable certainty simulation, and uncertainty analysis
• Applications of multiple reliable technologies • Statistical computational techniques—Machine
increase confidence in free-water level learning, especially in unconventional reservoirs
determined by use of pressure data or seismic
amplitude shutoffs, seal-capacity analysis, well The authors illustrate how a case for
logs, pressure data, and seismic to support reasonable certainty in reserves estimates may
proved reserves estimates be built using four field examples. In each of the
examples, descriptions of the fields are drawn from
The complete paper devotes a subsection literature and key uncertainties are discussed that
to summarizing previous discussions of reliable affect being able to establish that an estimate is
technology within the industry. indeed reasonably certain. The potential in using
multiple technologies to help develop a reasonably
Motivation for the Study certain estimate that address the effects of these
In the view of the authors, limited discussion key uncertainties is addressed. The examples
has taken place about how to develop a case for discussed in the paper focus on conventional oil
reasonable certainty using a grouping of one or and gas fields.
more technologies. The paper discusses how such
cases can be developed, especially when dealing Field Examples
with inherently uncertain subsurface descriptions The first example discusses the Scarborough
and the limited data available to establish and gas field offshore western Australia. The authors
constrain uncertainty ranges. Previous researchers describe how reasonable certainty can be
established how confidence in reserves estimates established in a reservoir that spans a large areal
can be increased by the application of multiple extent but only has a limited number of well
reliable technologies. The complete paper builds penetrations to date. Seismic, well, and pressure
on this theme and provides approaches in which data in combination can be used to establish
the reliability of estimates is enhanced and a reasonable certainty. In the second example,
better case is made by combining inferences from a deepwater offshore oil field with no
from multiple lines of evidence. The authors penetrations in the water leg, reasonable certainty
write that it is important for industry to share can be established in reserves estimates. A single
more field examples that illustrate how reasonable technology (reservoir simulation) in conjunction
certainty for estimated Proved Reserves is with oil-leg pressures can be used to determine
established using different combinations of a reasonably certain estimate for oil-column
multiple technologies. thickness below the lowest known oil depth. The
No extraordinary single technology exists third example discusses the Atlantis oil field in
that always satisfies reliability criteria or helps to the Gulf of Mexico. The authors illustrate how
establish reasonable certainty automatically. One the confidence around simulation estimates can
or many of the following typical technologies are be increased significantly by combining reservoir
often used during reserves assessment: simulation with a second technology (4D seismic)—
• Measurement—Well logs, pressures, and core especially when estimating unswept volumes that
experiments may be recoverable by future wells (PUD reserves).

52 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

The final example discusses an offshore oil field Conclusions


to illustrate how the combination of seismic data, Both the SEC guidelines and the PRMS
well data, and fault analysis can establish likely framework are principles-based approaches
continuity within the reservoir and its associated and provide the flexibility to incorporate the
facies distributions. most-appropriate technology and analysis to
establish reasonable certainty.
Discussion This paper addresses the complex challenge of
The authors have shared four examples from fields establishing reasonable certainty in reserves and
at various points in the reserves life cycle, including resource assessments. In many situations, the use
examples from fields not yet sanctioned, a recently of a single technology might not be sufficient to
sanctioned field, and currently producing assets. establish reasonable certainty. In combination with
In each case study, a cross-disciplinary approach other complementary technologies, however, a case
was taken and multiple technologies assessed for reasonable certainty can be made more robustly.
and integrated to assess reasonable certainty. The The authors provide four examples of how
paper also serves as an update of the state of the a combination of technologies can be used to
industry on the topic of reliable technology. establish reasonable certainty better compared
It is uncommon for a single reliable technology with the use of a single technology. The examples
to establish reasonable certainty when estimating showed a combination of geophysical methods
Proved Reserves. In many instances, evaluators (seismic including use of amplitude flat spots
must contend with some incomplete data sets, and 4D), well data (highest and lowest known
widely spaced well-control points, seismic imaging hydrocarbon depths, highest water depth),
challenges, and computational results with wide pressure data, and computational methods
uncertainty ranges. Suitable analogs may not (reservoir simulation). The authors recommend
be available. This is especially true in deepwater that asset teams should build a case to establish
producing fields and development projects, where reasonable certainty by assembling all available
data-acquisition costs can be prohibitive. data and inferences.
The use of multiple technologies and their In each of these examples, the case is
integration allows for congruence of all available strengthened by the use of an additional technology
observations within a common earth model (CEM), and associated analysis. If reasonable certainty
where reliability increases as further data or cannot be established definitively, volumes
results from new technologies are incorporated cannot be considered as Proved Reserves. In such
in a consistent manner. To that end, geophysics situations, however, the analysis performed to build
has recently made significant progress in the the case can be used for appropriate classification
areas of seismic acquisition and processing, as and categorization.
well as quantitative interpretation technologies, The authors write that the examples in the
which help quantify and reduce the amount of complete paper will benefit subsurface teams
uncertainty in the CEM. Expectations are that and reserves estimators across the industry.
this trend will continue and that it will expand to The examples are shared to stimulate more
other technologies. industrywide discussion around the use of
Approaching reserves evaluations by using complementary technologies. The authors write
all available multidisciplinary data provides the that their hope is that practitioners will share
reserves evaluator an opportunity to conduct a examples of their assets and how they have applied
trial of the evidence, thereby resulting in more- technologies that were most appropriate for their
robust estimates. specific fields to establish reasonable certainty. JPT

jpt.spe.org 53
ADVERTORIAL

ADVERTORIAL
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TECHNICAL PAPERS | Reserves Management

Alternative Business Model of CCS Projects


Unlocks High-CO2 Fields

High-CO2 gas fields present a problem to host friendly fiscal and tax regimes and a fair gas-
governments wanting to both ensure security of pricing policy.
supply and achieve net-zero aspirations. While In addition to its role as the upstream
carbon capture and storage (CCS) technology regulator, a national oil company (NOC) may also
holds the promise of technical feasibility to unlock participate in the gas market as an aggregator.
these fields, its commercial success ultimately Effectively, the NOC signs an upstream gas-sales
hinges on the choice of an appropriate business agreement (UGSA) with upstream contractors
model. This study compares the economics of committing to buy gas at a volume and price
the traditional business model [i.e., CCS as part palatable to them. The aggregator then sells the
of the upstream petroleum operation dedicated gas it now owns to downstream users. The margin
to a production sharing contract (PSC)] vs. the between the buying and selling prices makes up
alternative business model [i.e., a regional CCS the aggregator’s profit. In return, the aggregator
hub separately managed by a special-purpose takes on the intermediary roles of matching
vehicle (SPV)]. For simplicity, this paper uses the supply to demand, coordinating fair nomination
term CCS throughout, although the discussions and curtailment mechanisms, and ensuring that
apply equally well to carbon capture, usage, and the gas chain as a whole is flexibly robust against
storage projects. operational disruptions.
An NOC enjoys the dual roles of operating
Background as a national corporation and acting as the
Gas Value Chain and the Cost of Gas (COG). upstream regulator. In its regulatory role, the
With its higher development, transportation, and NOC is cognizant of the need to allocate the risks
processing costs; longer and flatter production and rewards of a CCS investment in a fair and
profile; and needs for network infrastructure, efficient manner between participating parties.
the economics of gas development is often less The business model must improve the overall
robust than that of oil. Therefore, gas development economic return for both the upstream contractor
requires not only the establishment of long- and the SPV while enhancing the NOC’s integrated
term contracts and a complex value chain but value. The business model so designed must also
also active government support in the form of achieve the NOC’s longer-term goal of unlocking
resource opportunities and monetizing stranded
gas fields.
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 214359, “Business Model
of Carbon Capture and Storage (CCS) Projects for High-
For a limited time, the complete
CO2 Fields,” by Hasnor Lot, SPE, Andrew Yeow, SPE, and
paper is free to SPE members
Anuar Buang Mahmood, SPE, Petronas, et al. The paper
at jpt.spe.org.
has not been peer reviewed.

56 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

Investing in CCS Rather Than Paying Carbon (in the case of the alternative business model) are
Tax. Carbon tax and cap-and-trade are the two as follows:
most commonly used carbon-pricing mechanisms, • Capture and compression
but this paper focuses only on carbon tax because • Transportation through pipeline
of its ease of administration and greater certainty • Storage and monitoring
of implementation.
In the authors’ scope of study, the option to Consistent with the aim of the analysis
develop high-CO2 fields without investing also in to reduce the COG borne by upstream, the
CCS—proceeding instead to pay carbon tax if and ownership of the sales gas will remain with the
when it is levied—is not considered, even if it is upstream PSC.
the cheaper option. This is partly the result of a The analysis is based on a limited set of
conservative stance on the carbon tax forecast but technical data, itself synthetically generated from
also partly the result of a desire to emphasize the several recent CCS projects. In simulating the
NOC’s serious commitment to net zero. operation of a CCS hub that serves multiple gas
fields, each of the fields is considered to possess
Methods and Process similar characteristics. Because of the limited
Traditional vs. Alternative Business Models. data, the numerical results in the complete paper
The two models considered are the traditional should be treated as illustrations and examples
business model and the alternative business of general trends. That said, the business models
model. In the former, the CCS facility is part of considered here are robust enough to be
the upstream petroleum operation dedicated to broadly applicable. Economic evaluation metrics
a PSC; in the latter, the CCS facility is separately used are internal rate of return (IRR) and net
managed by an SPV. present value.
In the traditional business model, the entire
project, including CCS, is governed under the PSC Threshold Conditions for the Optimal Choice
and is subject to its fiscal terms. The entire project of Business Models. While the complete paper
also is subject to a single upstream tax regime. In generally leans toward recommending the
the alternative business model, the two scopes alternative business model as the optimal choice
[base field development plan (FDP) and CCS] are for most situations, it is important to qualify
operated under separate arrangements. As in the preemptively that, in some cases, the traditional
traditional business model, the base FDP scope is business model (separate CCS facilities under the
governed under the PSC, subject to the PSC fiscal beneficiary PSCs) might be preferable. Several
terms, and taxed under the upstream tax regime. specific situations are considered in this light.
The CCS scope, however, is managed by another Number of Fields. With only a few fields
entity—an SPV—and is subject to a different initially, the unit cost of a hub is relatively
tax regime. expensive but becomes increasingly cheaper
with each subsequent field. Below the crossover
Data, Scope, and Limitation. The CO2 in question point (the breakeven number of fields being
originates from inherent upstream high-CO2 gas. served), separate individual CCS facilities might
Nontraditional sources (e.g., factory emissions) are be a better option.
not considered. The scope of the study is limited to Distance Between PSCs. A regional CCS hub
the question of business-model design. saves on the cost of the main facilities but incurs
Throughout this study, it is assumed that instead the transport costs to connect to each
the operational components of the CCS SPV field it serves. If the distances between PSCs are

jpt.spe.org 57
TECHNICAL PAPERS | Reserves Management

too great, separate, small CCS facilities dedicated every dollar of hydrocarbon sold by the upstream
to each PSC are more cost-effective. contractor will equal the following:
Volume of CO2. A minimum volume exists • Government (through royalties and taxes)
below which a CCS facility is not operable • NOC (as regulator and counterparty to the PSC)
(shutdown condition). Therefore, below this • Upstream contractor margin
minimum, the total operating cost of the • CCS capital costs
CCS facility is zero, although this somewhat • Upstream total costs [capital expenditure
disguises the fact that the CO2 must still be (CAPEX) + OPEX]
dealt with. • SPV margin (through tariff charges)

Results and Discussion As the SPV is introduced to undertake the


The Proposed Solution. The authors’ proposed CCS CAPEX, the front-loading of the upstream
solution is to set up an SPV whose sole purpose contractor’s costs has now reduced. The upstream
is to undertake the CCS scope of work at a lower contractor, however, is then liable to pay a fee
return compared with that of the upstream to use the CCS facilities instead. This results in
contractor. This SPV ideally will have the backing the upstream contractor having an IRR above its
of the state and thus is able to accept a lower rate required return.
of return but with a well-defined scope of work and Because the upstream contractor now enjoys
business. The business model of the CCS SPV is to a higher IRR than before, it is then possible for
expend the capital required for the capture and, the NOC, who buys the gas from the upstream
in the case presented by the authors, storage of contractor, to lower the UGSA price. This difference
the CO2 of the gas field. The SPV revenues consist in price constitutes a savings for the government
of an annuity payment determined by its return and NOC.
requirement. Fig. 13 of the complete paper Although a lower price reduces the absolute
illustrates this concept. amount of surplus to the upstream contractor,
it is essential to bear in mind that the key to the
Effect of Changing SPV Return Requirement. decision-making is the required rate of return.
Intuitively, one might expect that the required Despite having a smaller surplus, the capital
return of the SPV will have a positive correlation outflow needed for the upstream contractor
with the UGSA price at which the upstream also is smaller.
contractor is willing to proceed with the gas-
project investment. By simulation, the authors Qualitative Benefits of the Alternative Business
demonstrate the project’s IRR/UGSA price behavior Model. Unlocking Stranded Hydrocarbons. The
depending on the SPV’s return requirement. A regional CCS hub also can serve as a jumping-off
higher SPV return requirement translates to a point to unlock yet-discovered surrounding fields.
higher operating expense (OPEX) for the upstream Spinoff Economy and Local Talent
contractor. This has the effect of lowering the Development. The regional CCS hub can expand
project IRR across all price points. By lowering the into managing CO2 from other nontraditional
SPV’s required return, however, the CCS OPEX is sources such as factory and power-plant emissions.
reduced for the upstream contractor and its IRR Potential also exists for a flourishing spinoff
is lifted across all UGSA price points. economy for businesses located onshore around
the regional hub.
Effect of Introducing the SPV on the Revenue Stabilization of PSC Fiscal Terms. In the
Balance. A revenue balance is performed in which traditional business model, making the CCS

58 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

investment feasible for upstream contractors Conclusions


usually entails one of three solutions: increasing • C
 CS technology holds the promise of technical
the price, giving tax incentives, or enhancing feasibility to unlock high-CO2 fields. Its
fiscal terms. Of these, fiscal-term enhancement commercial success, however, ultimately hinges
usually is the preferred approach. But the ability on the choice of an appropriate business model.
to tweak fiscal terms does not necessarily mean • In the traditional business model, CCS
that it is a desirable approach. Potential exists deployment in high-CO2 fields can be made
for conflict between the clauses intended to economically viable through enhancements to
encourage hydrocarbon production vs. those PSC fiscal terms. Separating the project into
intended to curb CO2 emissions. Furthermore, two separate scopes (Base FDP and CCS) and
the PSC fiscal terms constitute an internal private introducing the alternative business model,
contract with negotiated clauses—contrary to the however, could lower the COG.
spirit of a liberalized open market that an SPV • The authors’ analysis shows that lowering the
approach offers. COG is achieved through economies of scale,
Therefore, in the alternative business model, fiscal and tax optimization, and reduction in
where the CCS cost is unloaded onto the SPV, the required returns (owing to lower risk). The
PSC can focus on upstream petroleum operations, benefits of the COG reduction accrue to all
obviating the need to enhance its fiscal terms. participants in the CCS investment. JPT

jpt.spe.org 59
TECHNICAL PAPERS | Reserves Management

Stochastic Economic Ranking Addresses


Risk and Uncertainty for Decision-Makers

Project screening and ranking is inevitable Value Addition: Stochastic Approach


even when an organization faces no resource A common practice in the oil and gas industry is
bottlenecks. In project economic predictions, the to simply examine low, middle, and high cases. This
stochastic approach is prevalent and proves to be is a limited view of possible scenarios and provides
the most natural approach to address technical a false sense of precision regarding expected
and commercial uncertainties. In contrast with project outcomes.
a deterministic approach, a stochastic Monte The term “stochastic” refers to the property
Carlo simulation helps in understanding the of being well-described by a random probability
range of possible outcomes to enable effective distribution. A stochastic approach features the
decision-making. The objective of the complete following advantages:
paper is to present an integrated stochastic work • A stochastic model addresses uncertainties in
flow that addresses the subsurface, surface, and inputs with complete unbiased randomness in
cost uncertainties to screen, rank, and grade the outcomes.
opportunities early in the derisking process. • By running thousands of calculations and using
many different estimates of future economic
Introduction conditions, stochastic models predict a range
The proposed work flow simultaneously can of possible future investment results, showing
address all technical and commercial uncertainties the potential upside and downside of each.
with a Monte Carlo model and predict a range • Once the work flow is followed and the model
of possible economic outcomes with customized is set up, multiple realizations can be created
economic analysis tools. In other words, it can with a single click.
achieve complete unbiased sample randomness
in expected project outcomes. The work flow Proposed Integrated
also creates a stage-gate decision-tree approach Stochastic Methodology
and reviews economics as a series of staged In the world of project economics, classical
investments. This helps to expose incremental stochastic economics is a tool to address
capital in the life cycle of a project responsibly and uncertainty and risk. In simple terms, a mean
help with course correction where necessary. or deterministic view of a production profile,
along with one view of a schedule, is taken
and blended with probabilistic distribution of
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 213385, “Stochastic
Economic Ranking: A Prudent Way To Address Risk and
For a limited time, the complete
Uncertainty for Decision-Makers,” by Mahesh Narayanan,
paper is free to SPE members
SPE, Mehaboob Abdulazeez, SPE, and Khadija Bukhamsin,
at jpt.spe.org.
SPE, Saudi Aramco, et al. The paper has not been peer reviewed.

60 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

P90 P10

Classic

Production Schedule Cost


Profile/Type Curve

Multiple Type Curves P90 P10

Proposed Schedule Variation


Risk Evaluation
Method

+ Cost

Fig. 1—Comparison of classic vs. proposed stochastic approach.

cost inputs. This data is then taken through a different stage gates using a Monte Carlo
Monte Carlo model to create multiple scenarios to simulation. The model uses a commercial tool
predict a range of possible economic outcomes. that will integrate subsurface, surface, and cost
This narrow range of economic outcomes only inputs, including well count, production type
covers the uncertainty in cost but does not cover curves, produced fluid yields, project stages,
variability in well performance and time. project cycle times, capital expenditure and
The authors write that, with their proposed operating expenses, success criteria, and any
stochastic approach, stochastic ranges are applied other variables that may affect profitability in an
simultaneously to production profiles or type economic evaluation with a stochastic work flow.
well curves, schedules, and costs. Through this Probability distributions provide an improved
approach, cases can be created with lower well method of describing uncertainty of inputs
performance, delayed execution, and higher cost, for risk analysis. Tools can be used to set up
limited only by the identified uncertainty for each probabilistic distributions for each of the previously
variable—complete unbiased randomness in mentioned inputs.
expected project outcomes. Thus, a much wider In general, sample size is a limitation, and
range of uncertainty is captured. The methodology thus the distributions created need to address
offers the flexibility and granularity to model all the uncertainty around that parameter. The most
details of any unconventional projects and help important rule to follow is to use appropriate
create a staged approach to investment decisions distribution types and ranges that addresses
(Fig. 1). the intrinsic nature of that variable. These
inputs are then sampled using Monte Carlo
Probabilistic Model Setup simulation to generate a multitude of trials and
and Work Flow associated statistics.
A custom model and work flow were established to The complete paper focuses on the economic
create a probabilistic economic model to effectively and commercial aspects of screening, ranking,
model uncertainties and process them through capital allocation, and decision-making.

jpt.spe.org 61
TECHNICAL PAPERS | Reserves Management

Capturing Variability (NPV) greater than $0 and thus being deemed


in Well Performance “commercial.” This determination is based on
Typically, in early-stage screening, the largest multiple realizations of the stochastic work flow.
uncertainty in a project is the expected typical
well performance. The initial rates, decline factors, Expected Monetary Value (EMV). EMV is an
and ultimate expected recovery per well are limited integral part of the economic evaluation and
to short-term flowback data, analog information, is used to perform quantitative risk analysis.
and numerical simulation. It is a vital metric that supports the ranking of
One of the unique value additions of the the opportunities. EMV is a specific analytical
proposed approach is the ability to capture technique in which a calculation is made to
variability in the expected well performance. The determine the average of all potential outcomes
applied methodology allows for a single type curve when the future includes a number of specific
to be expressed as a single or a multisegment scenarios that may or may not ultimately occur. It
analytical equation. Key input parameters such is obtained by multiplying the NPV of each possible
as initial rate, decline factor, and length of flow outcome with the probability of occurrence
periods then can be set up with distribution ranges, (i.e., the sum of probability-weighted outcomes
and Monte Carlo simulation can be used to create is the EMV).
a multitude of expected type curves. Each type
curve can then be applied to assess stochastic Peak Funding Exposure (PFE). This metric
project economics. provides the maximum net funding exposure
before net annual cash flows turn positive. With
Evaluating Commerciality With PFE, the management’s risk appetite in pursuing
a Stochastic Work Flow a project post-ranking is explored. This metric
Probabilistic economic analysis to stress-test provides management with a useful barometer to
the robustness of an opportunity at the early gauge potential loss tolerance and the required
stages of the project is vital to ensure that high- scope of funding.
graded opportunities are advanced to appraisal
and piloting to achieve the desired production Early-Stage Portfolio Derisking
strategy. An integrated stochastic economic model Screening, ranking, and prioritization of the
for hypothetical opportunities with synthetic portfolio must be a structured, auditable, and
assumptions is created. Multiple realizations are repeatable approach that can be applied on the
created with the help of Monte Carlo simulation, opportunity inventory and enabled with the three
and every realization is processed through previously described metrics from the integrated
complete full-field project economics. stochastic work flow. Opportunities are screened,
The following three key metrics were identified ranked, and prioritized for decision-making for
as good indicators for comparing cases in order the next stage of investment.
to analyze the range of outcomes and are used In an example scenario in Table 2 of the
for quick screening, ranking, and prioritization. complete paper, screening and ranking are
completed to streamline capital allocation for
Probability of Commerciality. The probability the most value-accretive appraisal or pilot
of commerciality is an important metric used strategy. In the table, opportunities that have
for the screening of projects. It is expressed a probability of commerciality of greater than
as a percentage representing the probability 80% are moved forward to ranking. EMV will
of the opportunity having a net present value rank these opportunities from highest to lowest

62 JPT | December 2023


TECHNICAL PAPERS | Reserves Management

value. The PFE provides the flexibility to adjust The benefits of stochastic analysis include
the ranking based on management’s risk appetite. the following:
This holistic stochastic approach provides an • A consistent and repeatable approach to
auditable, trackable, and repeatable ranking comparing projects
process that can be reviewed periodically. • Responsible exposure of incremental
capital and allocation of funds to competing
Conclusions ventures
The integrated stochastic work flow presented in • Guidance of stage-gate decisions, such as
the complete paper is an auditable and unbiased whether to continue or exit the project
derisking process to aid in assessing commerciality • Quantification of opportunities, both
and ranking of portfolio opportunities. The key volumetrically and economically
objective of the example discussed in the complete • Determination of uncertainties and risks
paper is to help rank opportunities in the appraisal that control variance in production and
and pilot stages. The work flow is not limited to this profitability
application, however. Others across various project • Comparison of projects using a set of standard
stages can be explored with these probability and metrics to determine which are most worthy
aggregation principles to support decision-making. of continued investment JPT

jpt.spe.org 63
TECHNOLOGY FOCUS

Production and Facilities


Débora Salomon Marques, SPE, Dow Industrial Solutions

I
t seems that it has been a very productive
period for production and facilities. I
“Energy integration continues
reviewed a significant number of abstracts to be a topic of interest, with
on such an interesting variety of topics—new geothermal and even green
technology developments down- and midstream,
improvements in corrosion detection and
hydrogen being considered
prediction, new systems for emulsion monitoring, for energy generation in
and even downhole drones, as well as several production facilities, especially
optimization works using artificial intelligence in remote locations.”
and machine learning, for quality and control.
In the materials-science aspect, composite
and nonmetallic materials continue to be
significantly researched, as well as additive monitoring systems based on microwave, acoustic,
manufacturing for fast replacement of parts. and capacitance measurements.
I also reviewed abstracts on new materials In the area of equipment reliability, a common
development for downstream applications, such trend is using digital methods on historical data
as dielectric sealants and dissolvable rubbers. for prediction of equipment failure or corrosion
Some fundamental research on emulsion stability vulnerability. There were also inspection
was also present, as well as new emulsion developments such as the use of chemical

DÉBORA SALOMON MARQUES, SPE, is an associate research scientist for


Dow Industrial Solutions in the Netherlands. Previously, she worked
as a laboratory scientist in Saudi Arabia. Marques’ research there was
focused on oil processing in gas/oil separation plants, particularly
the chemical and physical aspects involved in emulsion-mitigation
processes. She contributed significantly to advances in nuclear
magnetic resonance for the characterization of light-oil emulsions.
Marques holds a bachelor’s degree in physics from the State University
of Campinas and master’s and PhD degrees in materials science
Débora Salomon Marques and engineering from the King Abdullah University of Science and
Associate Research Scientist Technology. She is a member of the JPT Editorial Review Board and
Dow Industrial Solutions
can be reached at dmarques@dow.com.

64 JPT | December 2023


TECHNOLOGY FOCUS

tracers to identify the location of equipment failure


Recommended additional reading at OnePetro:
downstream. A couple of works in this area are
www.onepetro.org.
suggested in paper SPE 205687, which provides
an example of deep learning used for intelligent
identification of equipment status, and paper SPE 205056
SPE 205056, which is a more-fundamental work Possible Missing Link in CO2 Corrosion
on corrosion-prediction models. Prediction
My attention was particularly drawn to by Yves Gunaltun, Retired
environmentally oriented submissions this year.
Energy integration continues to be a topic of SPE 205687
interest, with geothermal and even green hydrogen A Deep-Learning Model To Intelligently
being considered for energy generation in Identify the Working Status of Screw Pumps
production facilities, especially in remote locations. for Oil Well Lifting
An example of an interesting energy integration by Zhen Wang, Luming Oil and Gas Exploration
viability study can be found in paper SPE 204551. and Development, et al.
Another relevant aspect addressed was waste
management, with submissions regarding SPE 204551
abandoned wells management and waste disposal. Challenges and Opportunities for Green
A very thorough review on how to deal with Hydrogen Power Supply in Oil and Gas
produced solids can be found in paper SPE 210003, Remote Facilities
which clearly explains all stages of handling, by Salvador Alejandro Ruvalcaba Velarde,
from separation to disposal, with case studies as Heriot-Watt University
examples. An interesting work, paper SPE 213000,
combines two issues: the disposal of wind-turbine
waste and the use of abandoned wells. Because
of the toxicity of wind-turbine blades, abandoned
wells and cement coprocessing are considered
as disposal options. It is quite interesting how
costs and emissions were carefully analyzed in
this study.
Paper SPE 211932 caught my attention for This work points this out as an anomaly. While
its social and economic impact. This work presents some refining companies may profit from this,
the use of modular refineries as an alternative, deep social impacts are caused by the increased
cheaper solution to increase refining capabilities. gas prices in nations that are petroleum-rich.
Many developing nations produce more oil than It is nice to see developments in our field
their internal market consumes but still need that can contribute to less social inequality
to import large quantities of refined products. in the world. JPT

jpt.spe.org 65
TECHNICAL PAPERS | Production and Facilities

Modular Refineries Offer Advantages


for Product Availability in Nigeria

Nigeria is rich in crude oil, with a proven reserve comprises a part of the entire processing plant.
of 37 billion bbl. Despite the abundance of this Various components are connected through
resource, Nigeria has lacked the capacity to meet interstitial pipes to create a highly manageable
the country’s demand for petroleum products process. They are smaller than conventional
locally and has resorted to their importation. refineries, with processing capacities ranging from
Establishing conventional refineries is highly capital- 1,000 to 30,000 B/D. Essentially, modular refineries
intensive, and they take a significant amount of are mini-refineries.
time to build and commission. The modular refinery Modular topping plants or crude distillation
option is a less capital-intensive alternative. The units are the most straightforward and cost-
complete paper discusses the promise of modular effective method of extracting valuable fuels from
refineries and their potential effects on the crude oil. Within 14 months of contract execution,
availability of petroleum products in Nigeria. a topping plant can be operational, providing
host communities with vital fuels for automobiles,
Introduction power generation, and job possibilities.
Despite its large reserves of crude oil and a combined Furthermore, construction of a modular refinery
in-country refining capacity of 445,000 B/D from four is less capital-intensive, ranging from $1 million to
state-owned refineries, Nigeria has been plagued $15 million, compared with a conventional refinery,
with challenges in local refinement. These refineries which could cost up to hundreds of millions or
have operated grossly below installed capacity for even billions of dollars, depending on the refinery’s
decades, operating at a capacity hovering between complexity and configuration.
15 and 25%. The inability to harness local refining to Many configurations featuring different
meet demands for petroleum products has turned degrees of sophistication exist for modular mini-
Nigeria into a net importer. refineries. They include the following:
• Atmospheric topping unit—This is an
Modular Refineries inexpensive distillation unit that can make
A modular refinery is a processing plant composed diesel and kerosene from raw crude oil.
entirely of skid-mounted structures, each of which Naphtha and fuel oil also can be byproducts.
• Topping unit with gasoline train—This option
features the addition of regenerative agents
This article, written by JPT Technology Editor Chris or hydrotherapy, thus producing high-octane
Carpenter, contains highlights of paper SPE 211932,
“Imperatives of Modular Refineries and Their Impact on
Product Availability in Nigeria,” by Evelyn Bose Ekeinde and
For a limited time, the complete
Adewale Dosunmu, SPE, Federal University Otuoke, and
paper is free to SPE members
Diepiriye Chenaboso Okujagu, University of Port Harcourt,
at jpt.spe.org.
et al. The paper has not been peer reviewed.

66 JPT | December 2023


TECHNICAL PAPERS | Production and Facilities

unleaded gasoline and high-octane liquefied to full operating capacity. This alone, however, will
petroleum gas. This configuration can put not meet national demand. The modular-refinery
together isomerization units to make more option is an ideal alternative to meet in-country
premium unleaded gasoline. It also can make demands and eradicate the problem of fuel
more gasoline with a higher octane rating. shortages without depending upon the importation
• Vacuum distillation unit—The addition of a of petroleum products.
second distillation tower to separate the fuel
components from the atmospheric tower Changing Nigeria Into a Net Exporter of
results in clean heavy diesel (vacuum gas oil) Petroleum Products. In 2019, Nigeria’s daily crude
and dirty heavy residual oil. oil production was estimated at approximately
• Hydrocracker unit, full conversion—The 1.7 million B/D, making it Africa’s leading oil
hydrocracker unit (which has a high capital state. Ironically, however, that oil state is the
cost) transforms light and heavy gas oils into largest importer of refined petroleum products
more-marketable products with a lower boiling in the region. To address this discrepancy, policy
point. The yield of a hydrocracker unit may add interventions such as the 7 Big Wins plan have
to the profitability of a refinery. been implemented. These strategies emphasized
the economic advantages that a revitalized refining
The Importance of Modular industry might bring to Nigeria. The 7 Big Wins
Refinery Development in Nigeria initiative was aimed at enhancing the petroleum
The modular distillery concept is not new but industry in a transparent and efficient manner
gained traction in Nigeria with the launch of the while fostering a more-stable investment climate.
“7 Big Wins” plan to expand Nigeria’s oil and gas The project will necessitate new collaborations
industry (2015–2019). The objective of the plan between key stakeholders, new technologies,
is to create a stable, growth-conducive oil and and innovations. Modular refineries are well-
gas landscape through increased openness, suited to help implement this strategy and
efficiency, a stable investment environment, and improve the economy and have the capacity to
environmental protection. The need for a leap help Nigeria transit from a massive importer
forward for in-country refining became paramount of petroleum products into a net exporter of
in promoting product availability in the country and petroleum products.
drew attention to the modular refinery alternative.
The modular refinery alternative is of vital Curbing the Scourge of Pipeline Vandalism,
importance in achieving the national goals Product Theft, Illegal Refining, and
highlighted in the following subsections. Environmental Degradation. A vulnerable
network of pipelines conveys crude oil to refineries
Eradicating Petroleum-Product Shortfalls and petroleum products for evacuation. The
and Promoting Product Availability. The daily socioeconomic problems of pipeline vandalism
consumption of petrol in Nigeria, estimated at and product loss have resulted in a huge loss of
approximately 59 million L/d during the first revenue to the Nigerian government. These acts
quarter of 2020, meets only 50% of the country’s also have resulted in incessant environmental
demand. The same shortfall scenarios apply to degradation and pollution. The motives for
other petroleum products such as fuel oil and pipeline vandalism include outright theft and a
aviation fuel. Nigeria, thus, has depended on the rise in militancy for resource control in the Niger
importation of fuels. The ongoing rehabilitation of Delta. Many residents of this region perceive
state-owned refineries is expected to restore them it to be neglected by the central government

jpt.spe.org 67
TECHNICAL PAPERS | Production and Facilities

and denied the benefits of its own oil wealth. revenue and oil production accounts for more than
The methods used in the illegal refinement of 95% of the country’s export. Nigeria’s petroleum
stolen crude are economically, environmentally, business must expand consumer opportunities.
and socially destructive. The modular-refinery Dependence on the importation of refined
initiative would help address these issues petroleum products negatively affects the growth
significantly. With the right policies in place and of the economy. Only in-country refining can be
licenses issued to establish modular refineries, effective in boosting the oil sector’s contribution
crude oil can be refined legally and adequately to the growth of Nigeria’s economy. The modular-
and products can be manufactured that meet refinery alternative, alongside the rehabilitation of
environmental specifications. the country’s 445,000-B/D refineries, are the best
options to achieve this goal.
Conserving Foreign Exchange for the
Importation of Petroleum Products. Importation Effect of Modular Refineries on
puts a strain on Nigeria’s foreign exchange. Product Availability In Nigeria
In 2016, the Ministry of Finance reported that In all respects, in-country refining offers huge
30% of the foreign exchange was spent on fuel benefits to Nigeria. These benefits include
imports. Because Nigeria imports more than job creation, strengthening the naira against
it exports, relatively less demand exists for its international currencies, and ultimately enhancing
currency, weakening the naira against international the availability of petroleum products. For Nigeria,
currencies. In-country refining using modular Africa’s leading oil state, the era of swapping
refineries would help conserve foreign exchange petroleum for fuels is long overdue to end.
used for the importation of petroleum products. With conventional refineries unable to meet
local demands, the modular-refinery option is
Presenting Major Investment Opportunities advantageous. The deficits that exist between
in the Midstream and Downstream Sector, in-country refining capacity and consumption
Resulting in Gross Domestic Product (GDP) and demand, which over the years resulted in
Growth and Job Creation. Because of its vast massive importation, can be closed by setting
crude oil reserves, Nigeria is usually known as up modular refineries.
an oil economy. In terms of GDP, the petroleum It has been estimated that modular refineries
industry makes up less than 10% of total output. can process up to 200,000 BOPD. Modular refineries
In contrast, the petroleum sector in several Gulf are designed to be set up close to crude sources,
of Guinea states provides up to 30% or more of either existing refineries or onshore marginal fields.
their GDP growth. Between the third quarter of They also can be set up close to consumption
2018 and the first quarter of 2020, the oil sector clusters, making them ideal contributors to
contributed less than 10% to the country’s GDP. domestic supply. This will be a distinct advantage
According to the International Monetary Fund, to domestic supply and availability of petroleum
Nigeria’s economy is heavily dependent on products, making them readily available to
the oil sector, where oil revenue accounts for surrounding communities without incurring
approximately 40% of the federal government’s excessive transportation costs. JPT

68 JPT | December 2023


TECHNICAL PAPERS | Production and Facilities

Abandoned Wells Can Provide Use


for Pulverized Wind-Turbine Blades

The complete paper outlines a potential solution of polymer resins and high-tensile-strength fibers
for handling leftovers from wind-turbine blades. to develop glass-fiber-reinforced (GFRP) or carbon-
Bisphenol A (BPA) is a chemical used in such fiber-reinforced polymers. These composite
blades. The risk of BPA leaching into groundwater materials provide strength, weight, and durability.
resources and the soil from wind-turbine-blade The strength and durability of the turbines, in
landfills can damage the food chain and can conjunction with their size, create a disposal
harm future generations through exposure problem during their EOL. A singular wind turbine
to contaminated resources. The solution blade can be up to 100 yards long. The average
discussed by the authors is the potential use of weight of a wind turbine blade 128 ft long is
the casing of idle wells considered for plugging 5,200 lbm. Blades that measure 155 ft can weigh
and abandonment (P&A) for housing pulverized up to 27,000 lbm.
blades mixed with Portland cement. The annual rate of blade decommissions is
projected to reach 2.2 million tons per year by
Introduction 2050. Breaking down the statistical outlook further,
The first large wind farms in the US were installed in 400,000 tons of blades will be decommissioned
the 1980s. Since then, the US has experienced two annually by 2030. This number is projected to
generations of wind-turbine installations, meaning reach 800,000 tons annually by 2050.
that many of the early-generation turbines have
already reached their end of life (EOL). EOL Options for Wind Turbines
Approximately 85% of turbine components Between 80 and 90% of a wind-turbine blade’s
are recyclable. Because of the complexity of the mass consists of composite materials. Of that
recycling process, however, these parts typically percentage, 60–70% is made up of reinforced
end up in landfills. Using landfills is, unfortunately, fibers, while the remainder is resin. BPA is a
the most-common method for blade disposal in the chemical produced mainly for use in polycarbonate
US because of its convenience and cost efficiency. plastics. The epoxy used to form the blade consists
Wind turbines are manufactured using of approximately 30–40% BPA. BPA can leak out
composite materials formed by the combination because of blade erosion after landfill placement.
Wind-turbine-blade landfills have the potential
not only to leach hazardous chemicals into the
This article, written by JPT Technology Editor Chris Carpenter, environment but also to affect subsurface aquifers.
contains highlights of paper SPE 213000, “Improving
Economics for Abandoning Orphaned and Idle Oil and Gas
Wells by Providing Storage for Pulverized Blades From Wind
For a limited time, the complete
Turbines,” by Elena Ikeocha, SPE, and Iraj Ershaghi, SPE,
paper is free to SPE members
University of Southern California. The paper has not been
at jpt.spe.org.
peer reviewed.

jpt.spe.org 69
TECHNICAL PAPERS | Production and Facilities

Because of their durable nature, they will remain cement manufacturing. The authors also explain
in landfills forever and leach volatile organic a methodology to quantify the blade mass that
compounds and other toxins for decades. can be recycled and reused for P&A projects.
Less-common methods of EOL alternatives These values are compared with the average
include incinerating the blade. The problem with abandonment cost. The pulverization cost for
this method, however, is that the blades have a this study did not consider blade-transportation
low energy content, and burning the fiberglass costs or solid-waste-disposal fees.
emits harmful pollutants and may create harmful The average depth of an oil or gas well drilled
byproducts such as carbon monoxide and in California is 4,100 ft. To consider case studies
formaldehyde from the breakdown of the epoxy regarding the containment measurements of
resin. The process of high-voltage fragmentation to P&A, a low estimate depth of 25% less than the
break down the blades also has been studied. The average and a high estimate of 25% more than
issue with this method is that it requires a large the average were used. These numbers can
amount of energy to produce the 200-kV electrical quantify cement amounts for P&A and slurry
pulses necessary to break down the material. compositions with percentages of pulverized blade
for three different blade weights and lengths,
A Plausible Solution assuming a typical concrete mixture made up of
The main proposed method for blade EOL disposal 10% cement, 20% air and water, 30% sand, and
is the process of unifying mechanical recycling and 40% gravel. The pulverized blade particulates
cement coprocessing. Mechanical recycling crushes replaced the sand and gravel in the study,
or pulverizes the composite material. This process accounting for 70% of the concrete mixture. To
is carried out in multiple stages, with the initial calculate how many blades could be used to plug
stage occurring at the wind-plant location to reduce a well with concrete, a density of 150 lbm/ft3 was
transportation costs associated with the blade size. used for the concrete, and a density of 20.6 lbm/ft3
The material resulting from pulverization ranges was used for the crushed blade of approximately
from fine powders to 1-cm-diameter fragments. 50×50 mm. Finally, a 4-in. inner diameter was
For mechanical recycling to be used with cement assumed for the casing.
coprocessing, the pulverized material is assumed to A wellbore diagram can be used to illustrate
be a fine powder. Cement coprocessing works best how the conservative estimate of the casing
for GFRP blades and allows the pulverized material diameter works in the volume calculations (Fig. 1).
of the blade to be incorporated into the materials The casing diameter used is not the largest
for cement, which, in turn, allows for both material diameter of the wellbore but rather the smallest,
and energy recovery. Cement coprocessing stages indicated by the green shading. The gray areas of
require the glass-fiber composites to be burned in the wellbore are the completion areas with cement,
a kiln. From there, the energy recovered from the while the green area is the location to be filled with
polymer resins displaces a certain amount of coal the crushed wind blades.
and natural gas as incineration fuel, which helps to
reduce CO2 emissions by up to 16%. The residual Results
glass fiber is then added to the cement. Cement coprocessing allows for the safe disposal
of the blades that would otherwise be disposed
Economic Calculations in landfills. Additionally, using wind-turbine
Much of the complete paper is devoted to tables blades in the cement-making process means that
and figures used to economically quantify the less cement is needed, reducing the energy and
feasibility of pulverizing wind-turbine blades for emissions required to produce it. This results

70 JPT | December 2023


TECHNICAL PAPERS | Production and Facilities

in lower carbon emissions and a reduction in


the overall environmental impact of cement
production. Furthermore, by using wind-turbine
blades in cement production, carbon emissions
are offset by the turbine’s operation, making it a
net-zero carbon-emissions process.
When considering cost figures, it must be
asked whether it is economically feasible for oil
Cut casing
contractors to benefit from taking in the wind
industry’s blades. The authors note that the
answer is unclear at the time of writing. The cost
of pulverization per ton is over 200% of that of
landfills, considering the national average landfill
tip fee of $55/ton. Placing the blades in landfills
is more economical but also is more of a liability
in the long term because it endangers water
Isolated oil zone
resources and stores toxins above ground.
In addition to cement coprocessing, grinding
the blades and filling well cavities with the
resulting product during abandonment is another
Fig. 1—A wellbore diagram indicating plugged areas
option that uses the wells as an efficient storage and open cavity space.
container. Because of the construction of the wells,
a casing and several feet of cement are available
that protect whatever is within the well from the Future Work
environment and groundwater resources. The future work of cement coprocessing and
The economics show that, if the wind- well-disposal methods of wind-turbine blades will
turbine industry were to fund its blade-disposal involve several key factors. One important aspect
projects by outsourcing the blades to be used for will be determining optimal slurry compositions
cement for P&A projects, it would help offset the and ratios for the process. Additionally,
financial burden on contractors while also making transportation costs for pulverization must be
wind energy closer to net zero by decreasing considered because the blades will need to be
the number of toxins a landfill produces and transported to the cement plant for processing.
converting the blades into a truly recyclable The proposed disposal process can create a
component. Wind‑turbine manufacturers and positive cash flow for operators involved in P&A
utility companies that use the turbines can pay the projects and can help in handling legacy problems
contractors of the oil and gas industry to use wells of turbine blades in a more environmentally
as storage for the blades. Rules and regulations friendly manner than the use of landfills. Overall,
related to P&A are already set in place to prevent the future of wind-turbine-blade disposal can
contamination of the surface and aquifers below, tie directly into a positive-cash-flow project for
making wells a good container for turbine- abandonment well projects that now would be
blade waste. a negative-cash-flow operation. JPT

jpt.spe.org 71
TECHNICAL PAPERS | Production and Facilities

Study Outlines Steps for Dewatering,


Transport, and Disposal of Produced Solids

The primary role of offshore solids handling is to 1. S


 eparate—Partition solid particles from
remove and dispose of produced solids properly, liquid, gas, or multiphase flow into a
without interruption or shutdown. Most sand- separate stream.
management studies focus on the separation 2. C
 ollect—Gather the partitioned solids into
component only. However, 80% of the capital a single central location and remove them
expenditure (CAPEX) of the process is attributed from the process pressure and flow.
to separating devices, and 80% of the operating 3. C
 lean—Remove adsorbed hydrocarbon
expenditure (OPEX) involves dewatering, transport, contaminants from the gathered sand
and disposal (DTD). The complete paper outlines particles with an attrition scrubbing system.
questions that must be asked during facility 4. D
 ewater—Remove free water from the
design and provides guidelines, calculations, and sand slurry to minimize the disposal volume
examples on each of the steps of the sand-handling dramatically.
process to be implemented after separation. 5. T
 ransport—Transport the solids to a final
disposal location.
Facilities Sand Management (FSM)
FSM refers to the solids-handling processes in the Role of DTD
hydrocarbon production and processing system An improperly designed DTD system likely will cause
from the wellhead to custody transfer, based on a congestion of the entire solids-management
engineering knowledge and a certain degree of skill. system. The starting point for discussion, when
FSM is not a waste-stream-treatment exercise considering the FSM approach, is to identify the
but a critical flow-assurance issue. Production proper (final) disposal route of the solids and then
and uptime are maintained (or increased) even work backward to meet that requirement.
when solids are present, while the operating costs The Pareto principle (or the 80/20 rule) applies
are minimized or reduced. This is accomplished as equally to sand management as it does to
through the use of a proper facility design macroeconomics. The 80/20 rule applied to FSM
incorporating the five steps of sand management entails that 80% of the CAPEX of an FSM system
to fully manage and handle the sand produced. can be attributed to the separating device (Step 1),
Each step must be integrated into the facility while the work accounting for 80% of the OPEX of
design. The authors identify these steps as follows: the FSM system is associated with the DTD method.
The clear CAPEX ramification is probably why so

This article, written by JPT Technology Editor Chris Carpenter,


contains highlights of paper SPE 210003, “What To Do With
For a limited time, the complete
Produced Solids After Separation: Dewatering, Transport,
paper is free to SPE members
and Disposal,” by Charles H. Rawlins, SPE, eProcess
at jpt.spe.org.
Technologies. The paper has not been peer reviewed.

72 JPT | December 2023


TECHNICAL PAPERS | Production and Facilities

much focus has been placed on separating devices. removes all free-flowing hydrocarbon liquids. Final
In the long term, however, the OPEX of sand dewatering may have an open or closed system
management should be considered. design. Open dewatering systems are designed
The following questions should be included in to send any captured liquids to an open drain,
the DTD-design process to ensure that all aspects while the sand, which may contain volatiles, is
are thoroughly reviewed: exposed to the atmosphere. Closed dewatering
• What is the level of automation required for systems capture liquids, after which they are sent
equipment operation? to a closed drain or returned to the process, while
• If the facility is located offshore, can the solids volatilized substances are sent to the vent system
be disposed overboard? and solids are kept contained away from exposure
• Does the process contain any hazardous to the atmosphere or personnel.
contaminants?
• Are solids already being handled at the facility? Transport to Disposal
• How will the solids be transported from the The transport of the dewatered solids to the
separation system to the disposal system? disposal site is Step 5 of the FSM methodology.
The final disposal site or method will determine
Slurry Dewatering how the solids are transported. The solids will be
Dewatering is required when the final disposal transported either as a slurry through piping or as
route involves containerized transport of the dewatered sand in a bin or bag container.
solids. The role of dewatering is to remove free When the disposal method entails overboard
liquids from a sand slurry to minimize the final discharge or injection, the produced solids are
disposal volume. In most cases, a greater than 90% transported in slurry form. A dewatering step may be
volume reduction is achieved. A dewatering system applied to remove any free hydrocarbons; the solids
typically is operated in the batch mode, with easy then are mixed with clean water to form a disposal
start and stop. It should require minimal personnel slurry. This slurry is transported through piping.
involvement and never impede the solids- After dewatering, the solids are placed in a bin or
separation and -collection processes in the facility. bag. The container is transported with a crane or fork
Depending on slurry quantity, up to two truck to lift the container or skip, which is then placed
stages of dewatering may be adopted—bulk and on a ship, truck, or other vehicle and transported
final dewatering. Bulk dewatering, also called the to the final location. The lifting requirements are
first dewatering stage, is not always required, generally 1–3 tons. Fig. 1 shows an example of an
but all dewatering systems will have a final stage. open-design transport container system.
Semicontinuous slurry-discharge-based systems In either format, slurry or dewatered, solid
require bulk dewatering to handle the large liquid transport generally is conducted in the batch
volumes that will be removed. This first stage is mode and not continuously. The transport timing
applied to remove 75–90% of the liquid volume is matched to the purge from an accumulator or
to simplify and shrink final-stage dewatering and cleaning system. The transport timing also should
transport equipment. Bulk liquids are sent to open or be matched to the transport of other solids or waste
closed drains (offshore) or to a capture pit (onshore). from the facility, such as that from drilling operations.
The final, or secondary, stage satisfies the
primary purpose of dewatering—to minimize Produced Solids Disposal
the disposal volume and weight of the sand or The main disposal routes are landfilling, overboard
slurry for final transport. In total, up to 95% of the discharge, and slurry injection. (The complete paper
volume is removed. In addition, final dewatering also discusses other, unique methods applied in

jpt.spe.org 73
TECHNICAL PAPERS | Production and Facilities

containing cuttings are subject to specific guidelines


for overboard discharge. However, produced
solids or sand often are not specifically listed.
The discharge of produced solids may be covered
under oily-cutting-discharge guidelines. While the
main aspect pertaining to solids discharge is the oil
content, other limitations, such as toxicity and the
presence of naturally occurring radioactive material,
may apply. Some regions, such as the US, Mexico, and
Brazil, do not allow any solid waste to be discharged
overboard. The industry trend in the future will be
to eliminate all overboard-discharge practices.

Slurry Injection. Solids disposal by injection,


sometimes termed slurry-fracture injection or
cutting reinjection, is used to emplace particulate
Fig. 1—Truck roll-off container to collect solids directly solids into a subsurface stratum by a carrier fluid.
discharged from a produced-water desander. Typically, this is a batch process where the solids
are mixed as a slurry, conditioned to prevent
specific projects globally.) Environmental regulations settling, sent to a holding tank, then injected either
concerning specific contaminants are the primary down an annular space between casing strings or
factor in the determination of the disposal route. into a dedicated injection well, and, finally, into the
The oil and hydrocarbon contents are not critical for receiving formation.
landfill disposal or injection but must be reduced to
a specific level for overboard discharge. Subsea Solids Disposal. No new equipment is
required to separate sand-proven equipment from
Landfill Disposal. Disposal at a land-based surface facilities for efficient sand removal from
waste site (i.e., landfill) is performed for both the well flow. A previous study investigated three
onshore and offshore produced solids. In both paths for solids handling on the seafloor. These
cases, the solids are trucked to the landfill in paths included conventional approaches to manage
a bag, bin, or other container. Many municipal the system configuration using established rules
landfills accept nonhazardous waste. However, the or technologies; treatment to modify the solids in
acceptance criteria for the produced solids must situ to reduce or eliminate their deleterious effects;
be determined for each landfill site. and removal, which combines the five steps of sand
management to handle sand as a separate flow
Overboard Discharge. In offshore facilities, the stream. Recommended approaches were as follows:
ability to discharge produced solids overboard • Separate and bypass the critical equipment.
simplifies the disposal process by eliminating The sand is separated upstream of the critical
shipping to onshore landfills. processing elements and then added back to
The regulatory control of offshore oil industry the flow line downstream.
operations falls under a variety of international, • Separate and inject into a disposal well.
national, regional, and local agencies. Each agency • Separate and place in retrievable containers.
should be consulted for specific and current • Separate and place in a bag, tube, or flexible
guidelines. The produced water and drilling mud container for seafloor storage. JPT

74 JPT | December 2023


TECHNOLOGY FOCUS

Bits and Bottomhole Assemblies


Martin Hayes, SPE, Dragon Oil

A
s bottomhole-assembly and drill-bit
design and operation have embraced
“All three of these papers
new technologies such as artificial highlight increased
intelligence, new materials and understanding in the operation
manufacturing techniques, and improved design
software, the industry continues to research
and evolution of existing
methods of optimizing delivery and understanding technologies to improve
of already globally used technologies. It is this drilling delivery.”
approach that has long allowed service companies,
operators, and drilling contractors alike to improve
drilling performance, as highlighted in the papers Many rigs worldwide have moved to using
summarized here. autodriller-type control systems, and, in many
In the first of these papers, paper SPE 210723, cases, these systems have shown improved
finite element fatigue simulation has been used performance. In the second paper, paper
to minimize the risk of twistoffs in jars, something SPE 214997, the optimization of these systems is
that many of us in the drilling community have discussed in the review and modification of driller
experienced. This paper can help us reduce those procedures to minimize damage to bottomhole
unplanned events and lost time. assemblies and the drill bit during drilling.

MARTIN HAYES, SPE, is a senior drilling engineer for Dragon Oil. He


holds a BS degree in applied geology from the University of Leicester
and is recognized as a Chartered Engineer and Chartered Petroleum
Engineer by the Energy Institute. He has spent more than 25 years
in the drilling industry, working with in drilling design, operations,
and training for companies including Schlumberger, Black Reiver
Consulting, Stanfield Consultants, Merlin ERD, Tullow Oil, WellSafe
Solutions, Bedrock Drilling, and Gulf Keystone. Hayes is a member
of the JPT Editorial Review Board.
Martin Hayes
Senior Drilling Engineer
Dragon Oil

jpt.spe.org 75
TECHNOLOGY FOCUS

Finally, while many papers have discussed


Recommended additional reading at OnePetro:
high-frequency torsional oscillations and their
www.onepetro.org.
effect on the bottomhole assembly and drill bit
from an operational or a theoretical view point, the
final paper, paper SPE 212566, discusses full-scale SPE 212438
laboratory experiments to qualify the drill bit’s Building a System To Solve the Challenges
influence on this effect. of Drilling Hot Hard Rock for Geothermal
All three of these papers highlight increased and Oil and Gas
understanding in the operation and evolution of by Anthony Pink, NOV, et al.
existing technologies to improve drilling delivery.
In the evolving world of drilling where the final SPE 212559
objectives and uses of wells are changing— Machine Learning-Based Drilling System
whether for repurposing; carbon capture, use, and Recommender: Toward Optimal BHA
storage; or geothermal uses—these approaches and Fluid-Technology Selection
to optimizing existing technologies in conjunction by Gregory Skoff, SLB, et al.
with the introduction of new technologies can help
oilfield drilling teams pivot into this adjacent energy SPE 212109
environment to deliver successful wells. JPT World’s First Application of Steel Body
Bit in High-Chloride Formation With
Water-Based Mud
by Bekbolat Uandykov, Zhigermunaiservice, et al.

76 JPT | December 2023


TECHNICAL PAPERS | Bits and Bottomhole Assemblies

Improvement Plan Using Fatigue Analysis


Minimizes Jar Twistoff

Jar twistoff is a well-known service quality issue the jar and that a new weak point has not been
for some applications, especially in relatively large introduced in the string. Impact and impulse also
borehole sizes such as 22 and 16 in. The jar is one must be evaluated to confirm the effectiveness of
of the weakest points in the drillstring because the jar in the case of a stuck-pipe condition.
of moving parts, which include complex shapes, The study is based on the work flow shown in
resulting in stress concentration. The complete Fig. 1 of the complete paper.
paper presents results of a study focusing on
placing the jar in the bottomhole assembly (BHA) Statement of Theory and Definitions
to reduce bending moments and bending stresses A more in-depth analysis was performed on a 22-in.
on the jar connections. As a result, the risk of vertical drilling application with nonhomogeneous
twistoffs during drilling is minimized, while the formations. A downhole real-time recording tool
effectiveness of the jar is maintained if a stuck was added to the drillstring above the BHA to
event occurs. evaluate and verify the magnitude of vibration
and bending moments acting on the BHA during
Introduction drilling operations. The 22-in. vertical section was
Jars traditionally are placed between drill collars selected because it was determined to be the most
in the applications described in this study. These challenging section. The following key observations
applications include 22- and 16-in. vertical holes were made during the drilling run when the
with simple BHA designs, either rotary or with circulation was lost to the formation:
positive displacement motors. In cases of lateral • Significant lateral vibration levels
vibration that creates high bending stress, this • Chaotic whirling motions
design is likely to cause the jar to experience • High bending moment
extreme stress levels. The design concept of
placing the jar between other components with Mechanical specific energy (MSE) and drilling
lower weight and stiffness appears to be the most parameters were controlled during the run to
logical approach. This design would have to be alleviate vibration. Vibration severity could have
validated with finite element analysis (FEA) dynamic been influenced by the absence of the mud
modeling simulations to confirm lower stress at column as well as the borehole quality because
of formation washout and an oversized hole.
However, this was never verified using a caliper log.
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 210723, “Service Quality
Improvement Plan Using FEA Fatigue Analysis Minimizes
For a limited time, the complete
Jar Twistoff in Challenging Applications,” by Chaouki
paper is free to SPE members
Boufama, SPE, Baozhong Yang, and Sultan Alfaraedhi,
at jpt.spe.org.
Schlumberger, et al. The paper has not been peer reviewed.

jpt.spe.org 77
TECHNICAL PAPERS | Bits and Bottomhole Assemblies

Beach
marks

Washout
area

Fig. 1—Fracture-face analysis of a


Beach Possible crack
marks initiation point Kelly mandrel 9½-in. drilling jar.

The string entered a state of chaotic whirl as deemed calibrated when the simulated outputs are
the loss of circulation fluid began. The parameters, within 15% of the field values.
and thus the MSE, were reduced, but the severe For this application, both surface and downhole
vibrations persisted. measurements were available. Initially, the surface
Even though the run did not cause any jar- torque and rate of penetration (ROP) matched.
component failure or crack, multiple previous The surface torque generally varied approximately
incidents showed similar failure modes in the 15,000–20,000 ft-lbf at the depth of interest during
same downhole conditions. These failures, which the run, with an average ROP of 30 ft/hr. With these
included the fractured face of each of the parted variables matched, increased instability downhole
components, were analyzed and evaluated (Fig. 1). was observed, resulting in significant vibration
The slanted fracture indicated a high combined and ROP variation. This instability was most likely
stress-related fracture. In addition, beach marks caused by the lack of mud and lubrication around
present near the fracture area also indicated the BHA and drillstring, resulting in high frictional
fatigue-induced damage. contact with the wellbore and shock, vibration,
and whirl.
Equipment and Processes With the baseline model calibrated, the
To investigate the hardware failures, find a investigation and comparison of different BHA
solution, and develop a remedial plan, a time- options could be initiated. With the focus on jar
based, 3D FEA drilling dynamics software platform integrity, several simulations were performed
was applied. A fundamental component of this initially using the field BHA and different drilling
software is the ability to model the formation parameters to determine how these parameters
interaction with the drill bit. would affect the loading on the jar.
The process of calibrating the model begins Increasing the weight on bit does appear to
with building a detailed simulation using the as-run help stabilize the system coupled with reducing
drill bit, BHA, trajectory, and formations drilled the rotational speed. However, although the
with the drilling parameters used in the field. The magnitude of stress is reduced, it is still significant
outputs were compared with the field data to across the jar, posing a high failure risk.
initially determine how close the model was to The BHA option that showed the most
matching reality. The calibration then becomes promising results was when heavyweight drillpipe
an iterative process in which the model inputs (HWDP) was added above and below the jar. The
are refined and the simulations are rerun until increased flexibility of the HWDP allowed the stress
the virtual model matches reality. The model is to be reduced across the jar and moved to the

78 JPT | December 2023


TECHNICAL PAPERS | Bits and Bottomhole Assemblies

HWDP, which can tolerate these levels of stress be subjected to 35,000 ft-lbf. The fatigue life of
much better than the intricate components of a jar. 6⅝-in. FH box connection under this condition is
When considering a comparison of bending 10 million cycles.
stress at the jar with the two BHA options, the results The impact or impulse of the jar after the
showed an approximately 40% reduction in peak introduction of the new BHA configuration
stress across the jar, specifically the Kelly mandrel. around the jar was simulated and verified. The
The results clearly show the stress being transferred risk of the BHA becoming stuck in the application
away from the jar and into the HWDP joints. was mainly mechanical, driven by hole quality after
The bending stress on the jar connections can drilling, and required up-jarring to release the
be reduced by placing the jar between the HWDP stuck BHA.
joints because the HWDP is much more flexible
than a drill collar in the same BHA. Under the same Field Test Results
conditions, the average bending moment on the jar From January to December 2020, 201 drilling runs
connections can be reduced from 50,000 ft-lbf at were completed in which the jar was run in 22- and
the jar/drill-collar connection to 35,000 ft-lbf at the 16-in. sections in the original BHA configuration
jar/HWDP connection. (i.e., between drill collars). During this period, six
One concern, however, is whether the weakest failure events occurred related to jars that resulted
point of the drillstring is moved from the jar to the in cumulative nonproductive time (NPT) of 456
HWDP connections. An FEA-based comparative hours for the client. This NPT equates to a jar-
fatigue investigation of a 6⅝-in. full-hole (FH) HWDP related incident every 33.5 runs. The modified BHA
connection and a 7¾-in. square connection (9½-in. design was introduced to the field in January 2021.
jar internal connection) was conducted to address From January 2021 to March 2022, a total of 124
this concern. runs were made with the jar placed between the
The FEA models of the HWDP and jar HWDP in the 22- and 16-in. sections. During this
connections with proper thread profiles were time, no service quality events related to the jar
established. Then, the pre-tension on the pin or the surrounding HWDP occurred.
connection was applied to simulate the makeup
torque. Next, several cycles of bending moments Conclusions
were applied to both connections. The mean A new jar position in the drillstring with connection
stress and strain amplitudes were output from modifications was introduced for a specific
the software after the FEA analysis was complete. application, which resulted in complete elimination
Fatigue life was calculated using the strain-based of jar twistoffs during drilling operations. The study
Coffin-Manson Fatigue Law with mean stress effect. presented in the complete paper was used to
Based on the calculated fatigue curves, with the evaluate this design, which is based on proprietary
same bending moment, the fatigue life of a 6⅝-in. time-based, 3D dynamic simulation software. The
FH box connection is six times greater than that proposed design is to place the jar between the
of a 7¾-in. square box connection. With a lower HWDP, which is lighter and more flexible. This
bending moment, the fatigue life of the 6⅝-in. FH is BHA change was validated by FEA fatigue analysis.
exponentially greater than that of the 7¾-in. square The impact and impulse reduction was limited;
connection. Therefore, placing the jar between therefore, the design will not impede jar operation.
HWDP joints does not move the weak point to This methodology has been standardized across
the HWDP. the application with proven success, indicating that
Based on bending moments from previous it could be adopted in future applications where
dynamic simulations, HWDP connections should similar events and conditions exist. JPT

jpt.spe.org 79
TECHNICAL PAPERS | Bits and Bottomhole Assemblies

Autodrillers, Rig-Control Systems,


Driller Procedures Reduce BHA Failures

Reducing bottomhole-assembly (BHA) failures has • Increase subject-matter experts’ support and
been this operator’s focus in US land intermediate involvement in proactively identifying when rig-
and lateral sections to reduce cost per foot. BHA control systems were not behaving as designed
failures can be mitigated with better autodriller to reduce impact on ROP and the BHA
processes, improved rig-control-system technology, • Evaluate whether the operator’s drilling
and drilling-mechanics-based procedures. The roadmaps and BHA safety-limit protections
operator, rig contractor, and BHA service providers were being properly integrated into autodriller
engaged in an intensive continuous improvement control loops
process for 18 months to help two rigs in • Use downhole sensors to understand how
Oklahoma reduce the number of BHAs used per surface controls induced dysfunctions and
well. The goal was to determine how to best tune confirm when they were mitigated
the autodriller and standardize set-point practices. • Propagate learnings across all rigs and crews
in the basin to reduce the number of BHAs
Introduction required to drill each well
The operator has found that rig-control systems,
particularly the autodriller, can be unstable Observations
in many drilling situations. The operator and Autodriller Dysfunction Identification.
contractor laid out the framework to measure Standardizing the identification of dysfunction
autodriller dysfunction suspected to affect rate- patterns to be avoided was a step based on physics
of-penetration (ROP) and BHA integrity. The team of the system, bit-run performance and dulls (Fig. 1),
engaged in a structured and intensive continuous directional tool damage, high-frequency (1,024
improvement process with the following objectives: samples per second) downhole data, and high-
• Understand if end-user tuning and set-point frequency (six samples per second) surface data.
practices from the contractor were being Currently, the focus is to quickly identify and mitigate
applied consistently at the rig floor level autodriller dysfunction by the rig teams, including
• Evaluate if the tuning practices were the types of dysfunction described in this section.
appropriate or effective in mitigating Stick/Slip. The operator developed a test
dysfunction in different formations to run the autodriller in different control loops
to determine when stick/slip was initiated or
intensified by the autodriller. Restarting drilling
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 214997, “The Role of
Autodrillers, Rig-Control Systems, and Driller Procedures
For a limited time, the complete
in Reduction of Bottomhole Assembly Failures,” by Pablo
paper is free to SPE members
E. Barajas, SPE, Paul Pastusek, SPE, and Aaron Lacey,
at jpt.spe.org.
ExxonMobil, et al. The paper has not been peer reviewed.

80 JPT | December 2023


TECHNICAL PAPERS | Bits and Bottomhole Assemblies

in ROP mode with the rig’s torsional dampening


system active eliminated the autodriller as the
source of stick/slip. It was determined that
excessive weight on bit (WOB) used to pass the tool
joint through the rotating head in the managed-
pressure-drilling’s rotating control device (RCD),
combined with low rotational speed, were key
factors in initiating stick/slip.
Fig. 1—Oklahoma post-run dull condition, showing wear,
WOB Dysfunction. Any significant WOB thermal damage, chipping, and tangential fracturing.
variation can drive enough torque variation to
drive stick/slip. This is particularly true if the WOB sufficiently above the actual values that they
variation has a frequency close to the natural seldom came into control. An enhanced autodriller
torsional frequency of the system. system was deployed that was designed to improve
ROP Dysfunction. Initially, the rig teams did the drawworks-payout stability. The enhanced
not identify ROP variance as a dysfunction or one autodriller calculated response gains automatically
that could be controlled. The operator was able for surface, intermediate, and horizontal sections.
to determine when the rig-control system was Some of the observations of the new autodriller
creating an ROP variance that did not come from showed that drilling with motor differential
the formation. In ROP mode, formation-induced pressure set points (aided by ROP set-point
variance of WOB should be equivalent to the ROP adjustments) in the lateral improved the autodriller
variance when drilling in WOB mode. Any increase stability compared with the previous version.
in parameter variance with one controller or the The enhanced autodriller was able to maintain
other comes from the control system. Also, any the target differential pressure of 500 psi much
regular repeating pattern in time is suspected to better using the new controller in differential-
be caused by control-system instability. pressure mode.
Depth-of-Cut (DOC) Dysfunction. After the
Oklahoma learnings were deployed to East Rig-Control-System Diagnostics Tools. The
Texas rigs, an initiative was launched by the contractor’s control-system-technology group was
rig supervisors and drillers from those rigs to able to tailor rig-control diagnostics tools to help
monitor and control the maximum penetration understand and reduce dysfunction. Top-drive and
per revolution, also known as DOC, when drilling drawworks signals were processed to deliver driller
hard interbedded formations. This was aligned alarms based on 5-minute trends that indicated
with the ROP metric used as a key performance if a drilling parameter had exceeded its set point
indicator (KPI) for control-system dysfunction. with a certain frequency. In a 24-hour period
A key result of this initiative was that high ROP after initiation for one rig, several alarms were
variance triggered the driller to run a controller test triggered in the first few hours of drilling, alerting
or to switch to ROP mode. In addition to the extra the rig team of necessary changes such as lowering
stress on the bit and motor, when in dysfunction, WOB set point and changing to ROP mode. Within
an approximately 20% loss in ROP resulted from 24 hours, the team was able to reduce, then
spending more time at or near 0 ft/hr. eliminate, instances of dysfunction observable
on surface data for the rest of the run.
Autodriller Procedures. The original version of Early observations on eight of the operator’s rigs
the autodriller was designed with WOB as the indicated that the autodriller was in high dysfunction
primary loop in control, with the other set points for 27–35% of the stands drilled for unconventional

jpt.spe.org 81
TECHNICAL PAPERS | Bits and Bottomhole Assemblies

wells. This represents a significant opportunity for focused on driller training for ROP set-point
rig contractors, service providers, and operators to management practices to reduce time in dysfunction.
work together to reduce unnecessary trips. After 5 months of autodriller-dysfunction
diagnostics, driller training, enhanced autodriller
Discussion deployment, and new driller procedures in the
Recognizing the dysfunctions caused by the tool second half of 2021, autodriller dysfunction in
joints entering and exiting the RCD, the operator directional BHA failures was nearly eliminated in 2022.
developed a procedure for drillers to help mitigate
the lateral vibration from the tool joint. The goal East Texas Intermediate DOC Dysfunction Focus
was to maintain a constant downhole WOB and for Intermediate Runs. The east Texas team was
DOC. The key steps were as follows: able to drill 9⅞-in. intermediate sections with two
• Establish a block height for each tool joint BHAs when the depth of cut was controlled, while it
entering and exiting the rotating head took three to five bit runs to drill with high variance
• Set ROP to average ROP immediately before in DOC. Running the autodriller a higher percentage
the tool joint enters the RCD of the time in ROP control was identified as a key
• Raise WOB set point so that it does not come contributor for the lower BHA count per well.
into control while the tool joint goes through With the introduction of DOC dysfunction
the rotating head surveillance on the rig and proactive intervention
• Monitor differential pressure and torque; if of the ROP set points, the team was able to reduce
either increase more than 20%, lower the ROP the number of BHAs per section from four to
set point two. The new autodriller, rig-control system, and
• After the tool joint exits the rotating head, drop driller procedures were determined to be the only
the WOB back to the roadmap target variables affecting BHA-run improvement.

The authors’ analysis indicated that the increase Conclusions


in surface WOB had no effect on downhole WOB; Tool-joint and RCD dysfunction can reduce bit-run
it was acting to push the tool joints through the footage to a few hundred feet; however, this can
RCD at surface. Once the tool joint exited the RCD, be substantially improved with better procedures.
the surface WOB automatically returned to the Practical KPIs have been established to identify
previous value. autodriller dysfunction. These can be used with
manual or automated procedures to alert the
Results drillers of dysfunction and call for corrective actions.
Reducing BHA trips was an overall objective for Autodriller stability, rig-control systems, and
this study. The role of the autodriller, rig-control driller procedures can greatly improve ROP and
systems, and driller procedures in reducing BHA bit and BHA life. A team focus on performance
failures was embraced by the rig teams as a part limiters, better rig-control-system technology,
of this continuous improvement process. better autodriller set-point procedures, and better
dysfunction identification must be deployed at the
Oklahoma BHA Run and Damaged-Beyond-Repair rig site. Teamwork and a mentality of continuous
Reduction Improvements. The Oklahoma team improvement are required by the operator,
was able to eliminate most of the dysfunction for rig contractor, and service providers. Finally,
the 12¼‑in. intermediate section. Short runs under an autodriller-diagnostics tool can be used to
500 ft were eliminated, and 2-mile vertical runs were look for other downhole dysfunction unrelated
achieved in one to two bit runs. The rig contractor to the rig-control system. JPT

82 JPT | December 2023


TECHNICAL PAPERS | Bits and Bottomhole Assemblies

Laboratory Experiments Qualify Bit Influence


on High-Frequency Torsional Oscillations

High-frequency torsional oscillations (HFTOs) Measurement. To initially characterize the


generate dynamic loads that can damage drilling frequency response of the system, an impact test
tools, resulting in cracks, twistoffs, or broken was performed on the system in a suspended
electronics. Recently, a full-scale drilling test rig nonoperating state with roving accelerometers
was proven to generate verified HFTO behavior (sensors) positioned as indicated by the blue
under laboratory conditions. This rig allows for lines in Fig. 1. Also indicated are the free-end and
a comprehensive study of the influences of bit fixed-end boundary conditions at the bit (left)
characteristics on HFTO. The complete paper and drive (right), respectively, as well as the point
presents methods to qualify bit features to of reference impact. The data from each pair
suppress HFTO. of sensors are then processed to separate the
torsional motions from lateral.
Laboratory Rig Setup Because HFTO is a self-excited vibration, it must
Test-Rig Design. The full-scale laboratory test rig be validated that this type of vibration is actually
drills rocks in a pressurized rock chamber. Rate of excited in the laboratory setup. To demonstrate that
penetration (ROP), weight on bit (WOB), rotational the excitation mechanism is representative for the
speed, pressure, bit type, and rock type can be field, one of the test results was used as a reference.
varied. The simulator consists of an open-loop A laboratory investigation showed that the measured
mud-circulation system with capacity for 200 bbl of vibration matches characteristics of self-excited
fluid, two 1,000-hp triplex pumps capable of up to vibrations. Investigations in the laboratory will,
500 gal/min, a hoisting mechanism for raising and therefore, lead to valid solutions in the field.
loading the drillstring up to 10,000 lbf, a 1,000-hp
rotary drive capable of up to 10,000 ft-lbf, and a Methods to Test HFTO
pressure vessel rated to 10,000 psi. To measure the influence of a parameter on HFTO,
High-frequency measurement instrumentation, a dedicated testing procedure was developed.
including in-bit vibration sensors, records the The recorded data were used to develop an HFTO
tangential accelerations and dynamic torque at indicator to assess the stability and severity of
various positions in the BHA. The mounted device torsional vibrations as well as the drilling performance
can be seen in the top left photo in Fig. 1. of the bit. These tests, which are detailed in the
complete paper, included high-frequency data
analysis, a stability map, and an ROP map.
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 212566, “Qualifying Bit
Influence on High-Frequency Torsional Oscillations Based
For a limited time, the complete
on Full-Scale Laboratory Experiments,” by Armin Kueck,
paper is free to SPE members
Eliah Everhard, and Xu Huang, Baker Hughes, et al.
at jpt.spe.org.
The paper has not been peer reviewed.

jpt.spe.org 83
TECHNICAL PAPERS | Bits and Bottomhole Assemblies

Measurement Points

BC: Free Impact Reference point BC: Fixed

Fig. 1—Locations of accelerometer measurement points. Left: free-end bit; right: fixed-end drive.

Investigations and Findings HFTO was triggered in the carbonate rock but not
Testing Procedure Influence. To ensure that the triggered in the shale. When transitioning from
stability of HFTO is truly influenced by the varied carbonate to shale, HFTO vanishes within a couple
parameter and not by the type of testing procedure of seconds, while it is almost instantly excited when
or statistical coincidence, verification tests are run. transitioning back to the carbonate. In this test, the
Rotational Speed Resolution. Because the rock strength was not a decisive factor because
rotational speed ramps are increasing and HFTO both rocks possess a similar uniaxial-compressive-
is excited at low rotational speed first, one effect strength value.
could be that HFTO is carried over from one Pressure Influence. HFTO frequently occurs in
rotational speed step to the following step. To test deeper formation layers. An obvious conclusion
this hypothesis, the same bit was tested at the could be that the excitation of HFTO depends on
same WOB steps, but with a different amount of the downhole pressure. To test this assumption,
rotational speed steps. Results indicated that the the same bit and rock combination was tested at
rotational speed resolution influenced the accuracy 3,000 and 6,000 psi. The downhole pressure did
of the rotational speed threshold more than it not have a major influence on the stability of HFTO
influenced the threshold itself. within the tested pressure range.
Hysteresis and Repeatability. Another hypothesis
is that the stability border depends on the direction Operating Parameter Influence. HFTO Amplitude
of the rotational speed ramp. Moving from the Scaling With Rotational Speed (but not WOB). Field
unstable to the stable zone could result in a different data shown in previous publications indicate that
border than would transitioning from the stable to the amplitudes of self-excited torsional vibrations
the unstable zone. To evaluate this assumption, the scale with rotational speed. This also proved to be
same bit was tested with increasing and decreasing true in the laboratory tests.
rotational speed ramps. The resulting stability Rotational speed scaling also could be
maps provided a strong indication that a hysteresis observed in the stability maps with accelerations as
of HFTO did not exist. At the same time, this an HFTO indicator. In the HFTO zone, amplitudes
test proved that stability tests are repeatable. linearly increased from left to right along with the
rotational speed. However, the amplitudes did not
Environmental Influence. Formation Influence. scale with WOB. Increasing or decreasing the WOB
A rock core consisting of multiple lithologies was did not scale dynamic torsional loads on the BHA
drilled to study the effect of different formations. once HFTO was excited. At a given rotational speed,

84 JPT | December 2023


TECHNICAL PAPERS | Bits and Bottomhole Assemblies

if the WOB is below a specific threshold, HFTO is example, than pressure. Thus, bit design has a
not excited, but if the WOB passes this threshold, large influence on the excitation of HFTO.
then HFTO is instantly triggered.
HFTO Scaling With DOC and ROP. The case Summary of Findings
may appear to be that increasing or reducing the The main influences on HFTO, as well as
depth of cut (DOC) of the bit while drilling may parameters not influencing HFTO, have been
help reduce or increase HFTO; however, the same determined. Parameters influencing HFTO are
DOC was observed to generate no HFTO and presented in the following, in descending order:
fully developed HFTO. DOC alone is not a reliable • Choice of bit type—PDCs and hybrid bits are
indicator for HFTO. Instead, the rotational speed necessary to excite HFTO; roller-cone bits do
must be considered at the same time. not excite HFTO.
HFTO scaled with ROP at a given WOB. • Type of rock—Only certain rock types excite
However, the same ROP could generate high HFTO. In the experiments, carbonate rock
or low amplitudes depending on the WOB. triggered HFTO, while shale rock did not.
• Bit size—The smaller the bit, the higher the
Bit Influence on HFTO. Bit Type. Of the three most likelihood of exciting HFTO.
common types of bits, polycrystalline diamond • Bit design—Bits should be qualified toward
compact (PDC) bits, roller-cone bits, and hybrid HFTO and drilling performance, for example by
PDC/roller-cone bits, fixed cutter bits excite HFTO laboratory experiments, before being deployed
while roller cones do not. All bit types with fixed in field operations.
cutters can excite HFTO and can behave similarly • Cutter shape—The torsional stability can be
to a PDC bit. influenced by choosing HFTO-suppressing
Bit Size. Naturally, the main effect of a larger cutter geometry.
bit size is an increased outer diameter. This • Operating parameters—Being aware of
outer diameter allows for housing more material, the stability border and keeping WOB and
especially at the outer circumference. This leads rotational speed in the stable drilling zone will
to an increased rotational inertia. A 6¾-in. bit prevent HFTO from being excited.
generates self-excited vibrations at 158 Hz, while
an 8½-in. bit generates vibrations at 134 Hz. Operational Recommendations
Bit Design. Even when choosing the same bit HFTO mitigation and stable drilling can be
type and the same bit size, the torsional stability realized in two stages. The first stage is prewell
can vary dramatically depending on the design planning and bit-design optimization. Conducting
of the bit. To investigate this phenomenon, two bit-qualification tests in a controlled laboratory
8½‑in. PDC bits of different designs were tested. Bit environment before field drilling is recommended.
A had six blades, six nozzles, 50 cutters of Shape From laboratory tests, an HFTO stability map can
A, a high cone angle, high back-rake angles, and be measured and bit design can be optimized.
a large makeup length. In contrast, Bit B featured The second stage of HFTO mitigation is to apply
five blades, five nozzles, 35 cutters of Shape D, anti-HFTO guidelines while drilling in the field.
a low cone angle, low back-rake angles, and a Adjusting WOB and rotational speed is suggested to
short makeup length. Stability maps showed mitigate HFTO based on the stability map. Formation
vastly different behavior, with Bit A having a large types also influence HFTO. Including formation tops
unstable zone, whereas Bit B was torsionally stable in prewell planning, identifying HFTO-prone rock,
in a much larger parameter zone. The difference and adjusting drilling parameters accordingly while
in stability depends much more on bit design, for drilling is recommended. JPT

jpt.spe.org 85
TECHNOLOGY FOCUS

Water Management
Swamy Margan, SPE, Halliburton

W
hat is new about water scarcity?
We hear about climate change;
“There is nectar in water;
rivers drying up, resulting in tracks there is medicine in water.”
of dinosaurs that lived 113 million RIGVEDA 1.23.19
years ago surfacing at Dinosaur Valley State
Park in Texas; people walking miles for a gallon
of water; millions dying each year from water-
borne illnesses; glaciers melting; and freshwater The first commercial natural gas well
aquifers becoming more vulnerable to saline water was drilled in 1821, and the first oil well was
intrusion. United Nations researchers predict a drilled on 27 August 1859. In 2022, global oil
20% decline in renewable water resources for every production was approximately 93.9 million B/D
1°C rise in the world average temperature. and natural gas produced was approximately
For most of us, this is daily news and we 4.1 trillion m3. On average, between 2 and 5 bbl
have heard it for many years now. How can the of water are produced for every barrel of oil
individual, the industry, corporations, and global and 260 bbl of water for every million cubic
society wake up to the reality of a drying last well feet of natural gas. The older the fields, the
and collectively act to extend life on Earth for higher the water generation. We are talking
another million years? roughly 300 million–600 million bbl of water

SWAMY MARGAN, SPE, is a product line manager at Halliburton and has


more than 28 years of engagement with the water-treatment industry
in various roles. He holds a degree in chemistry from the University
of Madrasa. Margan has authored and presented papers on water
treatment and reuse in multiple platforms over the years. He is a
member of the JPT Editorial Review Board.

Swamy Margan
Product Line Manager
Halliburton

86 JPT | December 2023


TECHNOLOGY FOCUS

generated per day, and, in the last nearly 200


Recommended additional reading at OnePetro:
years, technology and corporate citizenship
www.onepetro.org.
could succeed in recycling or reusing a meager
3 million–6 million BWPD (approximately 1%).
It is acknowledged that political leadership, SPE 213239
front-ending innovation, and financing for Sustainable Ion-Exchange Resins
domestic and commercial viability are essential. for Produced-Water Treatment
In the “quadilemma” between industrialization, by Madina Baltaeva, Aramco Innovations, et al.
agricultural demand, urbanization, and the needs
of human and livestock for water, political and SPE 215061
financial levers tilt toward industrialization. Hence, Increased Oil and Reduced Water
industrialization typically carries the blame for Production Using Cyclonic AICDs With
causing the water crisis across the continents, but Tracer-Monitoring Applications in Peru’s
it also creates and shepherds the innovation and Bretaña Norte Field
introduction of a plethora of technologies and by L. Acencios, PetroTal, et al.
tools that enable intelligent use of water, intuitive
approaches to conserve it, and implementable
practices that preserve the watershed and prolong
the life of aquifers. Desalination, which is still
seen as a breakthrough and technology’s most
practical solution to alleviate the water crisis, is still
expensive when compared with tapping surface
water or groundwater. Other smart and superior
technologies are evolving, but their success is
intrinsically linked to acceptance and adaptation.
Once that happens, the lowering of remediation
cost eventually will occur. This, complemented
by the ease of implementation and reliability,
will drive the success of water management and
move the 1% of produced-water reuse to a much
greater amount.
In this issue, I selected three papers for
publication that discuss three different established
and emerging approaches that explore cost-
effective ways to “move water from the Martian
poles to the people.” JPT

jpt.spe.org 87
TECHNICAL PAPERS | Water Management

Produced-Water Desalination Approach


Uses Renewable Thermal Energy

The operator is adopting a method to manage temperature of 180°C using a pressurized water
high-salinity produced water in an environmentally tank at 10-bar operating pressure. The desalination
sustainable way by extracting potable water from system will contain a pretreatment unit for the
produced water and reducing discharge water produced water and a desalination (FO) and brine-
volume by at least 50%. For desalination of the concentration (DO) unit. The unit will be integrated
produced water, a combination of forward and with thermal power to operate the desalination
direct osmosis technology is used. This process is plant. In addition, a fully automated control system
driven mostly by thermal energy, which is provided with a live backup will be installed. The system is
to thermal collectors that are 100% solar. This classified as having low maintenance and cleaning
technology uses renewable energy and will have costs because of its encapsulation features,
no carbon footprint. rotatability of 300°, and convex shape.
Fig. 1 of the complete paper shows the planned
Technology Description plant layout. The desalination plant will feature
The technology involves concentrated solar thermal two outputs: fresh water of potable quality and
(CST) power plants that provide 100% renewable brine. The fresh water will be used to serve the
water desalination. Forward osmosis (FO) and company’s freshwater demand, with excess water
direct osmosis (DO) can desalinate highly saline and used for agricultural purposes or mixed with water
polluted water, such as produced water, mainly with in an injector well to improve injectivity. The other
solar thermal energy. A pneumatic solar thermal output, the highly concentrated brine (20% salt),
plant consisting of two HELIOtube collectors, each will be collected in the existing evaporation pond
121 m long, provides the thermal energy for the where two main research and development studies
desalination process. The plant includes a mirror are ongoing, one related to mineral extractions and
technology based on CST, a cost-effective heat- the second related to salt monetization (using salt
transfer system using pressurized water as heat as a drilling additive).
transfer fluid (HTF), and a low-maintenance thermal
energy storage (TES) system allowing nighttime Materials Selection and Structure
operations of 35 m3 volume with an operating Solar Collector Principle. A cylindrically shaped
inflatable structure made from polymer films
provides the parabolic trough setup. A mirror
This article, written by JPT Technology Editor Chris Carpenter, film, which divides the cylinder into two airtight
contains highlights of paper SPE 211175, “An Innovative
Method of Water Management by Desalinating Produced
Water Using Thermal Renewable Energy,” by Sharifa
For a limited time, the complete
M. Al‑Ruheili, Felix Tiefenbacher, and Khansaa H.
paper is free to SPE members
Almahrami, ARA Petroleum Exploration and Production,
at jpt.spe.org.
et al. The paper has not been peer reviewed.

88 JPT | December 2023


200 TECHNICAL PAPERS | Water Management

150

100

50

0
January February March April May June July August September October November December

2016 2017 2018 2019 2020

Fig. 1—Simulated monthly thermal energy output for the proposed pilot plant (MWh) over the last 5 years.

chambers, runs lengthwise through that cylinder. A FO Principle. FO is a membrane-based technology


small pressure difference of approximately 0.5 mbar using a draw solution to pull the water through
between the top and bottom chambers arches the a semipermeable membrane to separate salt
mirror film downward, resulting in a mirror trough and water. FO uses thermal energy to treat
that concentrates the incident solar radiation onto the water-rich draw solution to separate the
a focus line in the upper chamber, where thermal water (permeate) from the draw solution, which
receivers transfer the heat to an HTF. Depending then is reused. FO combines the advantages of
on the differential air pressure between the two conventional thermal and electrical desalination
chambers, the thermal output can be adjusted systems. In terms of thermal energy demand,
and optimized. Additionally, the air pressure of FO-based desalination driven by CST is 50–57%
approximately 3.6 mbar inside the solar collector, lower compared with multieffect distillation (MED)
though very small, makes it self-supporting and and membrane distillation (MD). Compared with
stabilizes the collector against wind. The collectors an MED system with thermal vapor compression
are aligned from north to south and follow the sun (MED-TVC) and multistage flash (MSF), the thermal
movement one-dimensionally from east to west by energy demands of FO are still 40–50% lower.
rotation. Their encapsulated design is made for the FO outcompetes MED, MD, and MED-TVC by up
dusty and air-polluted environment typical of desert to 45% less electrical energy demand and needs
and oil fields. The air inlet of the specially designed at least 57% less electrical energy than MSF-
air-fan systems applies high-quality air filters that and CST‑driven RO. Additionally, because of its
are regularly cleaned or exchanged to keep energy excellent water-recovery ratio, the high brine
consumption of the fan system low. concentration resulting from an FO plant facilitates
the installation of zero-liquid-discharge technology.
Thermal Storage Principle. TES systems are
accumulators that store excess thermal energy Design Basis for Proposed Pilot Plant
during the day to keep the desalination process Geotechnical data and ambient conditions studied
operational. A one-tank design of the TES reduces in detail in the proposed location are provided in
operational cost and required capacity. System the complete paper. All equipment was designed to
integration will ensure that the storage system is achieve its rated capacity at a shade temperature
available for continuous operation with constant of 55°C and a minimum shade temperature of 5°C.
water output. The expected outcome is a thermal The equipment will function safely at a maximum
storage system designed for operating a CST-FO shade temperature of 60°C but not necessarily at its
desalination plant at constant water output. rated capacity. For the design of air coolers, a design

jpt.spe.org 89
TECHNICAL PAPERS | Water Management

air temperature of 60°C with a 10°C approach will performance and durability of the collectors, an
be used. The instrument electronics will be able to automated cleaning method for the transparent
operate continuously at 60°C ambient and 82°C film is supported. It will focus on the long-term
black-bulb temperatures. The surface wind velocity effect of cleaning, thus avoiding any scratching of
is very low, except for occasional intense sandstorms the ethylene-tetrafluoroethylene transparent film.
heavily laden with sand and dust particles from The heart of the described system is an FO
February to April. Fine dust in these sandstorms membrane designed to produce high flux with
can be as small as 2 µ. Rain will be infrequent, with varying salinity fed to both sides of the membrane.
negligible annual average rainfall, but rain often The membrane is operated as a pressurized FO
can be very heavy with severe flooding. Data about membrane, with flow rates designed so that the
the past 5 years of direct normal irradiance at the hydrodynamics overcome polarization concentration
proposed pilot location was studied, and then while operating with large feed salinities.
simulated monthly thermal energy output for the Feedwater will be concentrated up to
proposed pilot plant was modeled in MWh over the 200,000 ppm by a staged pressure-supported FO
past 5 years (Fig. 1). This exercise was necessary to (PFO) membrane array. To keep within standard
forecast the plant’s thermal energy production and pressure vessel ratings, each stage in the process will
its effect on the desalination plant. concentrate the feed only by 40,000–50,000 ppm,
Because the plant will be built in a very specific requiring multiple PFO membrane stages.
environment, the regional variations of ambient Concentration polarization reduces flux at these
conditions may have an effect on the operation of high salinity levels, so an increase in salinity causes
the overall system. Weather, water temperature, an exponential increase in membrane surface area.
and salinity will be evaluated. To increase ecological Membrane flux drops by a factor of 8 between
performance, the use and combination of the 70,000 and 200,000 ppm. The PFO element acts as
desalination plant with existing infrastructure will an electrical energy-saving device by exploiting the
be analyzed. System integration will ensure that the salinity in the draw solution to increase the feed-
thermal storage system is available for continuous salinity concentration. Draw solutions are chosen
operation with a constant water output. Predictive based on the specific feed-salt ionic balance so that
controls will be supplied and validated at the site scaling compounds are not introduced because of
to enhance the flexibility and operability of the reduced diffusion in the membrane. The overall
components, with the target of minimum part-load treatment process will consist of the following three
operation and quicker transition between different equipment trains on two skids:
irradiation statuses. A thermal receiver with a • Feedwater conditioning and pretreatment
secondary mirror will provide the receiver with including filtration and chemical addition for
lower capital expenditure and operating expenses scaling and biological growth
for medium-temperature (180°C) applications such • PFO membrane stage
as FO desalination. A single unit consisting of both • DO membrane system
the thermal receiver and the secondary mirrors The product-water-quality parameters will
will simplify and speed the installation process of be set by a combination of the prefiltration,
the collector. PFO-membrane, and final nanofiltration polish
A specific challenge for all solar collectors membrane elements. The system is equipped
in the Gulf Cooperation Council is the desert with a programmable logic controller panel-based
environment, with its dusty air and sandstorms. control system connected to a display screen—a
The described solar collector was designed for human/machine interface for control, system
use in such environments. To maintain the overall monitoring, and data acquisition. JPT

90 JPT | December 2023


TECHNICAL PAPERS | Water Management

Emulsion System With Nanoparticles


Suitable for High-Temperature,
High‑Salinity Reservoirs
The complete paper presents the evaluation In general, produced water volume dramatically
results of a water-shutoff (WSO) agent based increases in maturing oil fields. Reducing water
on an emulsion-type chemical material production also can contribute to saving water
with nanoparticles. The WSO agent, which injection from a reservoir-voidage-replacement
the authors call an emulsion system with viewpoint. Therefore, the functional chemical WSO
nanoparticles (ESN), has several advantages to concept has a significant effect on contributing
existing polymer and gel materials, including high to the International Energy Agency’s sustainable
thermal stability, low sensitivity to mineralization, development scenario.
thixotropic characteristics, selectivity of blocking
effects for oil and water, and reversibility of Materials and Physicochemical
blocking effects. In WSO applications, these Property Tests
properties of ESN could be well-suited for Oil, Water, and Carbonate Core. Dead oil is
improved oil recovery. sampled from an offshore carbonate field in the
Middle East containing light crude oil (32.3 °API).
Introduction Brine and plug core properties are summarized in
ESN is recognized as a proven technology for Tables 1 and 2 of the complete paper. For thermal-
carbonate reservoirs. However, the reservoir stability tests, both brines were used for making
under study did not feature harsh conditions; the ESN. The WSO coreflood tests used the ESN
therefore, this work evaluated ESN potential for made with injection water.
carbonate reservoirs in the UAE typically having
high-temperature and high-salinity conditions. Advanced Features of ESN. Rheology. The
A primary purpose of the technology, aside viscosity of ESN is controllable by changing the
from improved oil recovery, is contributing to water/oil ratio; viscosity becomes lower with
greenhouse-gas emission reduction and building increasing oil content and higher with increasing
competitive low-CO2-intensity oil-brand value. water content. These components were stirred,
and two ESN samples were prepared using
Crude Oil A (from Oil Field A, UAE) or diesel oil.
This article, written by JPT Technology Editor Chris Carpenter, The samples are referred to as Crude Oil A-based
contains highlights of paper SPE 211167, “Selective and ESN and Diesel Oil-based ESN in this paper.
Reversible Water-Shutoff Agent Based on Emulsion System
With Nanoparticles Suitable for Carbonate Reservoirs
at High-Temperature and High-Salinity Conditions,” by
For a limited time, the complete
Masashi Abe, SPE, Jumpei Furuno, and Satoru Murakami,
paper is free to SPE members
Nissan Chemical Corporation, et al. The paper has not been
at jpt.spe.org.
peer reviewed.

jpt.spe.org 91
TECHNICAL PAPERS | Water Management

Reversibility. The traditional crosslinked


polymer gel system is expected to be injected
predominantly into a waterflooded zone; however,
Mainly Injected Rigid
some part of the gel could unexpectedly invade
in Water Zone and Stable the oil-bearing zone, resulting in secondary
formation damage. This risk must be mitigated.
Unexpectedly Viscosity Lowered
in Oil Zone and Flowable The greatest concern involves one-way, permanent
(a) (b) reactions of the crosslinked polymer and gel
systems. This issue can be eliminated by the
Fig. 1—Schematic mechanism of ESN reversibility for
proposed ESN system because of the system’s
blocking and unblocking. (a) ESN injection operation;
(b) flowback operation. reversibility feature. The ESN system is stable in
a water zone but unstable in an oil-bearing zone.
When the ESN system invades an oil-bearing zone,
Both ESN samples showed similar viscosity more oil can mix with the oil phase in the emulsion
curves; such thixotropic characteristics are an system. This leads to water droplets distancing
important property of ESN. ESN is flowable at from one another up to the break of the emulsion
stirring conditions. In particular, the viscosity of system. Even if some magnitude of secondary
ESN can be decreased to less than 50 cp at high formation damage remains after injection of
shear rates, so it can be injected into the reservoir the ESN, the strength of the ESN system can be
by pumping. On the other hand, ESN becomes weakened by further flowback of more oil into
highly viscous and less flowable when no energy is the emulsion system, resulting in a full recovery
applied to it (the ESN surface looks semisolid in this of the filtration channels (Fig. 1). Therefore, the
condition). In field operations, the viscosity of ESN ESN system can solve the widespread secondary
decreases depending on the pressure generated formation-damage issues of traditional chemical
by injection pumps on the surface. However, WSO techniques.
the injection pressure also releases in a radial Visual observation of the ESN for the purposes
direction from the bottomhole zone. As a result, of measuring thermal stability are described in the
ESN recovers a high-viscosity state because of complete paper. Results support the idea that ESN
decreasing shear rate with pressure release. can be applied effectively in petroleum reservoirs
under high-temperature conditions.
Nanoparticles in ESN. The ESN is a water-in-oil
(W/O) -type emulsion structure. The components Shutoff Experimental
of ESN are oil, brine, emulsifier, and silica Results and Discussion
nanoparticles. In an effort to understand the Coreflooding Test. To evaluate the ESN’s blocking
structure of nanoparticle-reinforced W/O-type effect in cores with different initial water saturation
emulsions, the ESN structure was observed by (Swi), coreflooding tests were performed. The
an atmospheric scanning electron microscope sequence of coreflooding tests is provided in the
and a transmission electron microscope. For complete paper for the three following cases (in
those observations, the fit-for-purpose ESN Cases A and B, Diesel Oil-based ESN was used as
sample was prepared at an artificially increased the WSO agent):
nanoparticle concentration. To achieve clearly • Case A: Diesel Oil-based ESN test for
visual transparency, the emulsion system was intermediate-water-saturation case (Swi : 48.2%)
made with diesel oil. Results of these observations • Case B: Diesel Oil-based ESN test for
are detailed in the complete paper. low‑water‑saturation case (Swi : 37.8%)

92 JPT | December 2023


TECHNICAL PAPERS | Water Management

• Case C: Crude Oil A-based ESN test for successful selective WSO under most target-
high‑water-saturation case (Swi : 71.1%) reservoir conditions in the UAE. Even when
unexpectedly injected into an oil zone, ESN
Discussion. In Case A, water permeability reversibility through oil dilution was confirmed.
decreased from 0.78 to 0.12 md (a decrease of From the aspect of injectivity into low-permeability
85%) after ESN injection. Also, water permeability carbonate rock, the ESN could be manageably
tended to recover from 0.12 to 0.32 md by oil designed by adjusting its thixotropic features so
injection in the well-to-reservoir (left-to-right) that it could be operated without injectivity issues.
direction. It is expected that the blockage by the
ESN gradually can be released by oil injection to Conclusions
the well if needed. The ESN was evaluated for application in a
In Case B, oil permeability decreased from 1.72 carbonate reservoir under high-temperature and
to 0.62 md (a decrease of 64%) after ESN injection. high-salinity conditions from the standpoints of
Oil permeability remained relatively higher than rheological behavior, thermal stability, selective
brine permeability in Case A. Further oil production blocking, and reversible unblocking. The results
continued from the well after ESN injection. The revealed that the ESN’s unique features make it a
temporary blocking effect of the ESN was released high-potential option for selective WSO under most
gradually by contact with oil, meaning that oil target-reservoir conditions in the UAE’s fields. The
permeability recovers. Based on ESN blocking authors reached the following conclusions:
effects for different water-saturation cores, the • U
 nstable inverse emulsion systems can be
ESN’s feature of selectivity may significantly reinforced by nanoparticle bridging and,
contribute to targeted control of oilwell water cuts. consequently, stable emulsion systems even in
In Case C, water permeability decreased harsh conditions. Thermal-stability tests revealed
from 1.17 to 0.17 md (a decrease of 85%) after that the ESN was stable at high-temperature
ESN injection. This result was similar to that seen (120°C) and high-salinity conditions.
in Case A. Crude Oil A-based ESN performed • Nanoparticle-reinforced emulsion has an ideal
efficiently in blocking a highly water-saturated core. property of thixotropic viscosity behavior
The experimental procedures mimicked actual that can be adjusted by targeting reservoir
well treatment with ESN and remedial operations— properties. It is flowable under shearing
in particular, injecting ESN and, subsequently, conditions but becomes nonflowable under
oil, assuming a flowback operation. In the static conditions.
intermediate-saturation case, water saturation • Coreflooding tests revealed the ESN’s sure
was increased because of water-content supply water-zone blocking and blocking-effect
from the ESN solution during the blocking process, reversibility. The coreflooding tests of
resulting in a water-permeability reduction. intermediate- and high-water-saturation
Subsequently, the deblocking process created by cases showed blocking effects that achieved
oil injection revived the water permeability, even 85% permeability reduction. Absolute
decreasing water saturation. The absolute value of permeability comparison of pre- and post-
recovered water permeability did not return to the ESN injection sheds light on true unblocking
original value, apparently; however, the core could effects; however, relative permeability analysis
be returned to the original condition perfectly by confirmed a tendency to restore filtration-
considering water saturation. channel permeability to original conditions by
Based on the test results, the authors oil production. The ESN works as a selective
concluded that the ESN had a high potential for WSO agent. JPT

jpt.spe.org 93
TECHNICAL PAPERS | Water Management

Nanomembrane Approach
Reuses Waste, Cleans Produced Water

In the oil and gas sector, produced water is the the more basic methods for producing nanofibers
most significant waste stream. Among the different with dimensions ranging from micrometers to
materials used for water filtration, including nanometers. Strong electrostatic forces are used to
ceramics, polymers, and carbon nanomaterials, overcome the surface tension of a polymer solution
polymeric nanofibers can be considered a unique or melt. These pressures produce the ejection of
solution that can be used as a membrane or an charged polymer jets, which dry as they approach
adsorbent. In the complete paper, the authors a grounded electrode, where they are gathered
write that polymeric nanofibers can be prepared as nanofibers.
from polystyrene waste. In this work, the nanofibrous polystyrene
membranes were prepared from discarded
Introduction expanded polystyrene waste. Initially, polystyrene
The management of polystyrene trash and waste was collected and dissolved in an organic
recycling creates a significant environmental solvent; then, the nanofibrous membranes were
problem. While most of this substance ends up prepared by the electrospinning of nanofibers
in landfills, only a small portion of polystyrene from this solution. The morphology, pore sizes, and
is recycled or burned. By turning this trash into other parameters were controlled and optimized
products with added value, recycling will become by tuning the concentration of polystyrene, the
more appealing economically and will result in nature of the solvent, and the spinning voltage to
lower CO2 emissions and less chemical waste form uniformly sized nanofibrous membranes.
dumped on the ground.
At the same time, the use of modified Nanofiltration Process
nanofiltration membranes for generated-water The cleaning of produced water from organic
purification has been a subject of study for many pollutants can be performed by the membrane-
researchers. The complete paper includes a review of filtration process as shown in Fig. 1. Nanofiltration
the literature dedicated to advances in this approach. offers a combined solution for rejecting both
Dissolved polystyrene waste can be used as a organic and inorganic contaminants, making it
feedstock in the electrospinning process to create more advantageous than ultrafiltration. If water
nanofibrous membranes. Electrospinning is one of discharge is preferred, nanofiltration permeate also
can be clean enough to meet stringent discharge
requirements. However, other obstacles, such as
This article, written by JPT Technology Editor Chris Carpenter,
contains highlights of paper SPE 213946, “Nanomembranes
From Polymeric Waste for Produced-Water Treatment,”
For a limited time, the complete
by Anton Manakhov, Iaroslav Rybkin, and Fahd I.
paper is free to SPE members
AlGhunaimi, Saudi Aramco, et al. The paper has not
at jpt.spe.org.
been peer reviewed.

94 JPT | December 2023


TECHNICAL PAPERS | Water Management

economic viability, resilience, and limited efficiency,


impede large-scale nanofiltration implementation.

Experimental Setup
Waste Polystyrene-Solution Preparation. First,
extracellular-polymeric-substance (EPS) waste was
collected from packaging for laboratory equipment,
cleaned, and cut into small squares.
Fig. 1—Schematic representation of water/oil
After analysis of the literature dealing with the separation by nanomembrane.
dissolution of waste polystyrene, various solvents
were selected for further screening. According to pump for a continuous supply of reagents. The
the literature, the authors identified the range of polymer concentration used for the electrospinning
polystyrene concentration from 10 to 30% (w/v), process was selected in the range of 10–30% w/v.
which was used for preparing the polystyrene The electrospinning voltage varied from 10 to
nanofibers by electrospinning from the discarded 28 kV and the polymer injection rate varied from
polystyrene waste solutions. Therefore, the 0.5 to 2 mL/min. The deposition time was set to
solubility of the polystyrene waste was tested in 15 minutes.
different solvents, including chloroform, acetone,
dimethylformamide (DMFA), ethyl acetate, and Characterization of Nanofibers. Scanning
the binary mixture of acetone and DMFA (1:1 v/v). electron microscopy (SEM) was used to study
The solubility of polystyrene waste in the acetone the microstructures of nanofibers and deposited
and its mixtures with DMFA was relatively poor layers. The water-contact angle (WCA) was used
and did not allow reaching a 30% concentrated to determine the wettability of the sample. At
solution. The solubility of polystyrene in pure least five WCA measurements were taken for each
DMFA and ethyl acetate was sufficient for all sample. The analysis of the fiber’s diameter was
tested concentrations. The usage of chloroform performed using analysis of the SEM micrographs.
for electrospinning was deemed unviable. Thus, For each condition, 10 fibers were measured and
for the preparation of nanofiber membranes using then the mean value and standard deviations
electrospinning of polystyrene waste solutions, were calculated.
DMFA and ethyl acetate were selected.
Nanofiltration has a high potential for oil Testing of Hydrocarbon/Water Separation
and water separation because it allows for by Nanofibers. The separation of the water/
the extraction of cleaner water from water/oil hydrocarbon mixture was tested by the separation
mixtures, as well as the possibility of in-house of the water/hexane mixture with a ratio of 1:1.
recycling. The superhydrophobic nanomembranes For the sake of simplicity, the water was colored
allow the passing of hydrocarbons through the by water-soluble red dye. Nanofibrous polystyrene
pores, while the water will be rejected. To prepare membrane deposited onto a stainless-steel grid
such a membrane, polymers with a hydrophobic was used as a testing sample.
nature must be used. In the present work, waste
polystyrene was used as a feedstock for the Results and Discussion
electrospinning of nanomembranes. Polystyrene Nanofiber Preparation. Several
The technology used by the authors is based on concentrations of EPS (10, 15, 20, 25, and 30% by
the electrospinning of the polystyrene nanofibers weight) in ethyl acetate and DMFA were tested
using a Nanon01A setup equipped with a syringe for nanofiber creation. It should be noted that

jpt.spe.org 95
TECHNICAL PAPERS | Water Management

the samples prepared by the electrospinning of the filter. Thus, the feasibility of this approach was
polystyrene waste dissolved in ethyl acetate were confirmed by a simple laboratory-scale test.
thin and exhibited particle-based coating rather
than a nanofibrous structure. In contrast, the layers Discussion
obtained by electrospinning of polystyrene waste Discussions about prospective economic effects
dissolved in the DMFA exhibited a nanofibrous often are based on very approximate estimates
structure with some artifacts (beads) embedded with limited accuracy. Nonetheless, it is worth
into the nanofibrous net. The adjustment of the emphasizing that the high economic potential of
process parameters for the electrospinning of some methods can be forecasted using techno-
nanofibers from the solution in ethyl acetate led to economic assessments from the literature.
unsatisfactory results. Previous researchers have demonstrated
In contrast with the ethyl acetate results, the the techno-economic effect of implementing
process maintained using polystyrene solutions in nanofiltration membranes. They simulated the
DMFA was very successful and the adjustment of desalination of generated water using the basic
concentration, voltage, and injection rate allowed (no nanofiltration) and advanced (nanofiltration)
production of nanofibers with different fiber methods. The cost of the nanofiber membrane
diameters and disposal of the artifacts. method was calculated to be $0.18 ± 0.07/m3.
The results of the voltage and concentration The use of nanofiber membranes allowed for the
effects make clear that the increase in the reduction of chemical costs and the transformation
concentration of polystyrene waste in the solution of an economically negative situation (–$0.98/m3)
led to a significant enhancement of the fiber’s into a positive case with revenue of $0.6/m3. The
diameter, while the increase in the electrospinning use of nanofiltration may provide a considerable
voltage led to slightly thinner nanofibers. Finally, economic advantage to the generated water-
beads-free homogenous nanofibers were treatment business case.
synthesized for the solution with concentrations Polymeric nanofibers made from polystyrene
from 15 to 25% w/v at voltages ranging from waste can be an entirely positive solution for reusing
20 to 28 kV. The artifacts were suppressed by polymer waste and cleaning organic contaminants
increasing the polystyrene concentration and from generated water. The advancement of this
electrospinning voltage. technology will allow the creation of membranes
The wettability of the obtained nanofibers was from polymer waste and the purification of
evaluated. All samples were superhydrophobic, produced water from organic impurities.
with WCA values from 115 to 145°. The production of nanomaterials used in
Thus, in the first stage of this project, the membranes or adsorbents must be optimized and
authors developed a technology for production scaled up. It also is necessary to optimize all setups
of superhydrophobic nanofibers from solutions to reduce power usage and avoid severe energy
of polystyrene waste. These superhydrophobic loss. To achieve good power efficiency, efficient
nanofibers can be used for water/oil separation setups must be modeled using computational fluid
or removal of other organic contaminations from dynamics and plasma chemical kinetics.
produced water. Based on these considerations, the authors
suggest that multistep modular procedures for the
Testing Water/Hydrocarbon Separation. The regeneration of active materials and membranes
separation of the water/hexane mixture was based on synergetic effects obtained by membrane
successful, and no water was found in the separated distillation, adsorption, and plasma or photocatalytic
liquid hexane. All colored water remained inside treatment have enormous potential. JPT

96 JPT | December 2023


TECHNICAL PAPERS

SPE Technical Papers Available for Download


SPE technical papers synopsized in each monthly issue of JPT are available for download
for SPE members for 2 months. These November and December papers are available now.
You’ll also find links to the technical papers at the bottom of each synopsis.

NOVEMBER 2023 DECEMBER 2023


(available here through 31 December) (available here through 31 January)

DRILLING AND COMPLETION FLUIDS RESERVES MANAGEMENT


New Low-ECD (Organophilic Clay-Free Inverted Emulsion Establishing Reasonable Certainty for Reserves Estimates
Fluid) Weighted With Manganese Tetroxide Showed by Using a Combination of Reliable Technologies
Superior Performance in Different Fields: Success Story Business Model of Carbon Capture and Storage Projects
of Drilling With OCIEF in High-Overbalance Environment for High-CO2 Fields
Without Downhole Problems, Stuck-Pipe Events, and
Stochastic Economic Ranking: A Prudent Way To Address
Nonproductive Time
Risk and Uncertainty for Decision Makers
Real-Time Anomaly Detection Methodology for Drilling-
Fluids Properties PRODUCTION AND FACILITIES
Full-Scale Solids-Control Testing of a Light-Density Hollow- Imperatives of Modular Refineries and Their Impact
Glass-Beads Drilling Fluid on Product Availability in Nigeria

EOR OPERATIONS Improving Economics for Abandoning Orphaned and Idle


Oil and Gas Wells by Providing Storage for Pulverized
A Systematic Review of the Largest ASP Flood Project in the
Blades From Wind Turbines
World: From Laboratory to Pilots and Field Application
What To Do With Produced Solids After Separation:
Novel Janus Carbon Nanofluids From Waste Plastics as
Dewatering, Transport, and Disposal
Sustainable Nanoagents for Enhanced Oil Recovery:
Scaleup Synthesis and Performance Evaluation BITS AND BOTTOMHOLE ASSEMBLIES
Evaluation of CO2 Storage Potential During CO2 Mobility- Service Quality Improvement Plan Using FEA Fatigue
Control Optimization for Enhanced Oil Recovery Analysis Minimizes Jar Twistoff in Challenging
HYDRAULIC FRACTURING MODELING Applications
Multimaterial Multiphysics Modeling Coupled With Post- The Role of Autodrillers, Rig-Control Systems, and Driller
Fracturing Production Flow Simulations: Revamping Procedures in Reduction of BHA Failures
Hydraulic Fracturing Design Strategy Qualifying Bit Influence on High-Frequency Torsional
3D Integrated Geological and Geomechanical Model-Driven Oscillations Based on Full-Scale Laboratory Experiments
Mitigation Work Flow on Screenout, Frac Hits, and Casing
WATER MANAGEMENT
Deformation in Ultradeep Shale Hydraulic Fracturing
An Innovative Method of Water Management
A Comprehensive Simulation Study of Hydraulic Fracturing
by Desalinating Produced Water Using Thermal
Test Site 2 (HFTS-2): Part I—Modeling Pressure-
Renewable Energy
Dependent and Time-Dependent Fracture Conductivity
in Fully Calibrated Fracture and Reservoir Models Selective and Reversible Water-Shutoff Agent Based
on an Emulsion System With Nanoparticles Suitable
FLOW ASSURANCE for Carbonate Reservoirs at High-Temperature and
Tackling Mixed-Scales Issue in an Oil Field Using a Novel High-Salinity Conditions
Robust Scale Dissolver
Nanomembranes From Polymeric Waste for Produced-
Prediction and Prevention of Wax Deposition in Water Treatment
MERO‑006T: A Thermodynamic Modeling Approach

TOPICS COMING UP IN JANUARY


EOR Modeling | Mature Fields and Well Revitalization | Well Integrity | Digital Data Acquisition

jpt.spe.org 97
SPE NEWS

2023 Outstanding Technical Reviewer


Service Awards
Every year, SPE recognizes members who have made an exceptional effort to ensure the technical
excellence of the Society’s peer-reviewed journals. For their contributions, the following individuals are
recipients of the 2023 Outstanding Technical Reviewer Service Award.

SPE Drilling & Completion Thomas Van Akkeren, Production Technology


Ramadan Ahmed, University of Oklahoma Associates
Hussain Al-Bahrani, Saudi Aramco Jianjun Zhu, China University of Petroleum
Eric Cayeux, NORCE Norwegian Research Centre (Beijing)
Curtis Cheatham, Corva
Shadfar Davoodi, Sharif University of Technology SPE Reservoir Evaluation & Engineering
Carl Johnson, SLB Anil Ambastha, Chevron
Ergun Kuru, University of Alberta Salam Al-Rbeawi, Middle East Technical University
Yaxin Liu, The University of Tulsa Emad Al-Shalabi, Khalifa University of Science
Omar Mahmoud, Future University Faculty and Technology
of Engineering & Technology Jeff Baldwin, Chesapeake Energy
Ciaran O’Connor, Flow Science Roderick Batycky, StreamSim Technologies
Evren Ozbayoglu, The University of Tulsa Eric Delamaide, IFP Technologies (Canada)
Hans Joakim Skadsem, University of Stavanger Adolfo D’Windt, Consultant
Junichi Sugiura, Sanvean Technologies Jianlin Fu, Chevron
John Thorogood, Drilling Global Consultant Lei Fu, Aramco Americas
Valentin Guillon, IFP Energies nouvelles
SPE Production & Operations Zhenyu Guo, Xecta Digital Labs
Adeboye Adeyinka, Chevron Nigeria Myung Hwang, Consultant
Francisco Alhanati, C-FER Technologies Cunqi Jia, The University of Texas at Austin
Rajan Chokshi, Accutant Solutions Keith Katahara, Consultant
Chris Daeffler, SLB Anthony Kovscek, Stanford University
Artur Garcia, Chevron Hassan Mahani, Royal Dutch Shell
Xuyang Guo, China University of Petroleum Mohamed Rezk, King Fahd University of Petroleum
(Beijing) & Minerals
Sarvesh Naik, Chevron David Rousseau, IFP Energies nouvelles
Manabu Nozaki, ConocoPhillips Vijay Shrivastava, Computer Modelling Group
Abhishek Punase, Clariant Oil Services Maissa Souayeh, Sultan Qaboos University
Raja Ramanathan, Cemvita Factory Charles Vanorsdale, Keystone Petroleum
Sajjaat Muhemmed Reyath, Clariant Oil Services Consulting
Martin Rylance, IXL Oilfield Consulting Fengyuan Zhang, China University of Petroleum
Auzan Soedarmo, SLB (Beijing)

98 JPT | December 2023


SPE NEWS

SPE Journal Sanbai Li, Southern University of Science


Pål Andersen, University of Stavanger and Technology
Madhar Sahib Azad, King Fahd University Yuanbo Lin, Chevron
of Petroleum & Minerals Xiaodong Luo, NORCE Norwegian Research Centre
Baojun Bai, Missouri University of Science Ming Ma, The Pennsylvania State University
and Technology Amin Mehrabian, The Pennsylvania State
Zhiming Chen, China University of Petroleum University
(Beijing) Yusuf Nasir, Stanford University
Hamid Emami-Meybodi, The Pennsylvania State Mustafa Onur, The University of Tulsa
University Bo Ren, Aramco Americas
Hussein Hoteit, King Abdullah University Randy Seright, New Mexico Institute of Mining
of Science and Technology and Technology
Richard Hutchins, Gel Solutions International Zhenzhen Wang, Chevron
Jiamin Jiang, Chevron Miao Zhang, China University of Petroleum
Xiao Jin, ExxonMobil Upstream Research (Beijing)

2023 Outstanding Associate Editor


Service Award Recipients
SPE is recognizing high-performing Associate Editors who have distinguished themselves in terms of ability
to manage a paper’s timeliness and their overall responsiveness and quality of reviewer feedback. For
their contributions, these individuals are awarded the SPE Outstanding Associate Editor Service Award.

SPE Drilling & Completion SPE Production & Operations


Roman Bulgachev, BP Exploration Amit Singh, Chevron
David Stiles, ExxonMobil Development Jonathan Wylde, SPL
Christoph Zerbst, Shell Fengyuan Zhang, China University
of Petroleum-Beijing
SPE Journal
Yuguang Chen, Chevron SPE Reservoir Evaluation & Engineering
Hamid Emami-Meybodi, Pennsylvania State Anil Ambastha, Chevron
University Peter Clifford, BP Exploration (retired)
Artur Garcia, The University of Texas at Austin Adolfo D’Windt, Kuwait Oil
Jincong He, Chevron Catherine Laureshen, University of Calgary
Sanbai Li, Southern University of Science Bo Ren, Aramco Americas
and Technology Jasper Ring, Chevron
Hassan Mahani, Shell
Joachim Moortgat, The Ohio State University
Ryosuke Okuno, The University of Texas at Austin

jpt.spe.org 99
SPE EVENTS Visit www.spe.org/events for a complete list.

23–24 January | Vienna

Events Production Optimisation in Oil and Gas Assets

23–24 January | Houston


4–6 December | Buenos Aires
Geothermal Digital and Automation
SPE/AAPG/SEG Latin America Unconventional
Resources Technology Conference 29–31 January | Kananaskis, Alberta
SPE Data Workshop
4–7 December | Galveston

Call for Papers


Reducing the Impact of Casing Deformations
in Multi-fractured Horizontal Wells Forum

5–6 December | Bali


SPE International Health, Safety, Environment
Decommissioning and Abandonment
and Sustainability Conference and Exhibition
Symposium
Deadline: 29 December
23–24 January | Abu Dhabi
APOGCE 2024
Realising the Unconventional Potential in
Deadline: 9 January
Middle East—Accelerating from Resources
to Commercial Production Symposium SPE/IADC Managed Pressure Drilling
and Underbalanced Operations Conference

Workshops
and Exhibition
Deadline: 1 February

4–5 December | Kuala Lumpur CCUS Symposium


Harnessing Technology and Low Carbon Deadline: 16 February
Solutions to Monetise High Pressure High SPE Symposium and Exhibition: Production
Temperature Reservoirs Enhancement and Cost Optimisation
4–6 December | Cairo Deadline: 19 February
Unconventional and Tight Reservoirs, SPE Annual Technical Conference
the Unlocked Potential in Egypt and Exhibition
11–12 December | Mumbai Deadline: 19 February
Unlocking the Potential of Mature Fields:
Future Energy Security

12–13 December | Muscat


Petroleum Resources Management System
(PRMS)

15–16 January | Bangkok


Gas Field Development and Production—
Sales
State of Play Mike Buckley Danny Foster
22–23 January | Kota Kinabalu Media Accounts Manager Associate Director,
Navigating Challenges in Contaminant Tel: +1.713.457.6828 Americas
Management—Strengthening Safety, mbuckley@spe.org Tel: +1.713.457.6312
Sustainability, Innovations and Collaborative dfoster@spe.org
Approaches

100 JPT | December 2023

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