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DISCLAIMER
CONTENTS
I. Disclaimer
II. Introduction
III. Executive Summary
IV. Conference Presentations
A. Gas Exploration, Production, and Storage
Brad Tomer, National Energy Technology Laboratory, U.S. DOE
V. Appendices
May 2001
The National Energy Technology Laboratory (NETL) and the Sandia National
Laboratories are pleased to provide the proceedings of the Deep Trek Workshop held
on March 20-21, 2001 in Houston. These proceedings include the presentations made
during the workshop, as well as the breakout session results that were developed for
advanced smart drilling systems, drilling and completion fluids, completion based
well design, and drilling diagnostics and sensor systems. A list of participants is also
included. We have attempted to capture accurately all the ideas, comments, and
consensus opinions generated during the workshop. If you note any omissions or
wish to provide additional information, we welcome your comments.
We hope your organization is interested in a new deep trek initiative that may result
in collaborative efforts to develop the technologies necessary for reducing drilling
costs and enhancing the economics of deep hydrocarbon resources. With this in
mind, NETL is taking steps to analyze the workshop results and formulate a
solicitation for immediate release, should funds become available. Further details
and updates will be available at the NETL website: http://www.netl.doe.gov/. We
hope that stakeholder groups will use these proceedings in their planning endeavors
as well.
Your active participation in the workshop and the breakout work sessions is
sincerely appreciated. Over 95 participants from more than 50 organizations,
representing various stakeholders groups, provided a wealth of information and
opinions. This collaboration among stakeholders groups will accelerate the planning
for advances in deep drilling technologies.
Sincerely,
Brad Tomer,
Product Manager
Gas Exploration, Production, and Storage
Strategic Center for Natural Gas
EXECUTIVE S UMMARY
The National Energy Technology Laboratory (NETL) and Sandia National Laboratories hosted
the Deep Trek Workshop on March 20-21, 2001. The purpose was to gather stakeholder input on
technology gaps and needs for drilling and completing deep oil and gas wells, and to determine
how the DOE can collaborate with industry to meet these needs. Specific technology challenges
and opportunities focused on drilling and completion fluids, completion-based well design,
advanced smart drilling systems, and drilling diagnostics and sensor systems. These workshop
proceedings include all speaker presentations, the breakout session products, and the participant
list. The proceedings are publicly available at the NETL website: http://www.netl.doe.gov/. CD-
ROMs can also be ordered from this site.
During the workshop, 96 participants from 53 organizations shared ideas through presentations
and through facilitated breakout sessions. In addition, industry presenters gave detailed lists of
their drilling needs for an R&D program. The breakout sessions featured structured
brainstorming and critical analyses to identify barriers and technology opportunities, and to
prioritize collaborative actions. The workshop is expected to aid in developing strategic industry,
academia, and government alliances.
Background
The limits of conventional well construction technology are tested in drilling and completing
deep wells. The rock is typically hot, hard, abrasive, and highly pressured. The fluids produced
are, in many cases, corrosive. Control of well bore trajectory and placement of casing and
cement are difficult problems. In addition, because of weight limitations, there are a limited
number of rigs available to drill deep wells. This increases drilling costs. Today, it is
tremendously expensive to drill at depths greater than 16,000 feet, and in deep wells, as much as
50 percent of drilling cost can be encountered in the last 10 percent of the hole length. It is not
uncommon to encounter a penetration rate of only two to four feet per hour, at an operating cost
of tens of thousands of dollars a day for a land rig. If this low penetration rate is encountered on
an offshore location, the cost becomes millions of dollars daily. In deep formations, the driller
spends significantly less time on a percentage basis “making hole” than in shallower wells. Some
ways to keep a driller “making hole” include: reduce the number of “trips” out of the hole,
increase bit and drilling assembly life, reduce corrosion/erosion effects, and increase the driller’s
knowledge of what is happening downhole in real time.
Program Goals
The Deep Trek initiative is designed to develop technologies that make it economically feasible
to produce deep oil and gas resources. Deep Trek will focus on increasing the overall effective
rate of penetration (ROP) for deep drilling. This work will include high performance “smart”
Public Benefit
In a recent National Petroleum Council gas study, one of the leading frontiers for gas resource
development is in deep formations. EIA estimates that 7 percent of U.S. gas production in 1999
came from deep formations; this is expected to increase to 14 percent by 2010. Without
additional improvements in drilling technology, this deep gas resource will be developed
primarily because of increased gas prices. The situation is aggravated by the escalating costs
associated with deep drilling. Currently, there is no technology-based hope for a future solution.
Because lower gas prices are essential for economic growth, investing in deep drilling
technology will have an order of magnitude payoff in future economic benefit. Pressure for this
benefit is seen with escalating supply costs and an increase in gas demand. Gas demand is
expected to continue to increase, because gas is the fuel of choice for environmental impact
mitigation associated with electric power generation. Current gas demand estimates could prove
conservative should international agreements, currently under consideration, lead to additional
environmental legislation.
The scope definitions for these technical areas were bounded by the following target goals
(temperature aspects were noted in some of the groups):
A short summary is provided for each technical area and its top priority opportunity-action plan.
Actual storyboard products for barriers and issues, opportunities, and action plans are in
Appendix A. Although only the top opportunities were scrutinized in detail, many other
opportunities were noted. Each breakout group presented its results in a concluding plenary
session, but to avoid repetition, these presentations are not included. Participants are listed in
Appendix B.
Results
Two of the highest priority opportunities were real time data transfer and real time data
instrumentation. Their action plans were identical, calling for a committee of government and
industry personnel to spearhead the plan, and then study the state of the art and previous
accomplishments in this area. The “next steps,” as identified by the group, were to define the
problem and goals, perform a gap analysis, re-evaluate the economics of existing technologies,
and consider the end user needs. Additionally, determination of the value-added is necessary,
along with identification of potential solutions followed by request for proposals (RFPs).
Industry should define the problem while government should hold workshops for data collection.
An equal partnership of government and industry is needed, with additional assistance from
universities. The government was identified as having connections for team formation.
The highest ranked priority for this advanced smart drilling group was the development of a rig
operator decision support system, with an open architecture applicable to all wells. Four tasks
were identified: develop higher data rate telemetry systems, form consortium to define standards
for open architecture information standards, develop logic algorithms for drilling applications
that fuse real time downhole and surface data, and upgrade temperature and pressure
performance for sensors and electronics while looking for other markets to support. All of these
tasks will involve some sort of industry and government collaboration.
The highest ranked opportunity for drilling diagnostics and sensor systems was downhole
diagnostics drilling parameters including data validation, weight torque on bit, and state of bore
hole analysis. Actions focused on developing a low cost, reliable, high accurate, and retrievable
tool while preventing bit damage. Resources needed include better seismic while drilling,
Deep Trek Workshop March 2001
downhole processors, and better materials. Lead roles focus on service companies via JIPs with
lab and university research development. Leveraging of funds will be essential.
In order to optimize the fluid performance, the industry needs economic tests and simulators
developed that will aid in determining drill fluid contribution to well-bore stability. These tests
would also help evaluate the mechanical/chemical interaction of rock/fluid. Development could
be accomplished through a collaborative effort with industry, the government, and universities.
Actions suggested for reaching a solution include defining the problem, developing a
fundamental understanding of the mechanisms, defining the constraints, developing test
procedures and equipment, and field validation.
The highest ranked priority for completion-based well design was the development and
application of information tools for drilling and completion processes, as well as high-
temperature, high-pressure sensors. Field tests of sensors, data delivery systems, and data
collection and analysis systems are necessary. For example, current measurement while drilling
(MWD) needs to be robust. Expertise needs include high-temperature and high-pressure
electronics, micro devices, data transmission, and information technology. A neutral but
inclusive JIP consortium should lead this effort with service company involvement and a clear
path to commercialization.
This group also noted a number of general issues and crosscutting topics. There is a concern
about the availability of technical expertise to apply advanced technology. What may be termed
the “expertise pipeline” for new talent, as measured by university programs and the flow of
students, continues to shrink. There is also a tendency for industry to focus on the short-term
benefits of reducing up-front drilling costs. This comes at the expense of maximizing the long-
term payoffs of long well life and greater total production from improved completion tools and
techniques. In a generally risk-adverse environment, it is difficult to promote the use of new
technology in field operations. The cost of failure is prohibitive, particularly in costly deep wells.
Another group mentioned technology test underwriting, performance pricing, and exportability.
Next Steps
NETL is already taking steps to analyze the workshop results and formulate a solicitation for
immediate release should funds become available for this activity. Further details and updates
will be available at NETL’s website.
Participants
Advanced Smart Drilling Systems - Group A
NAME ORGANIZATION
Fereidoun BP
Abbassian
Buddy Bollfrass Ocean Drilling Program
John H. Cohen Maurer Engineering
Gary Collins Conoco, Inc.
Don Duttlinger PTTC
Betty Felber NETL/NPTO
Michael Fripp Halliburton
Leonard Graham National Energy Technology Laboratory
Craig Ivie Schlumberger Drill Bits
Jeff Jean ACPT, Inc.
Arnis Judzis* TerraTek
Ray LaSala U.S. Department of Energy
Jim Leslie ACPT, Inc.
Roy Long National Energy Technology Laboratory
Hum Mandell NASA Johnson Space Center
William Maurer Maurer Engineering
Bill Motion Sperry-Sun Drilling Systems
Jay Muthusami Knowledge Based Systems, Inc.
Hans Neubert ACPT, Inc.
Dennis Nielson DOSECC, Inc.
John Peters Chevron Petroleum Technology
Mike Prairie Sandia National Laboratories
Bob Radtke Technology International, Inc.
Earl Shanks Transocean Seoco Forex
Bill Stringfellow Hydril Advanced Composites
Bil Thedtke Technology International
Ajay Verma Knowledge Based Systems, Inc.
Bill von Eberstein SEPCO
Glen Warner Chevron Petroleum Technology
Steve Williamson Omsco Industries
*Report out presenter
Participants
Advanced Smart Drilling Systems - Group B
NAME ORGANIZATION
Dave Bacon Chevron
Ansgar Baule Baker Hughes Inteq
Robert Coats Baker Hughes Inteq
Blaine Comeaux* Sperry-Sun
Mahlon Dennis Dennis Tool Co.
Mark E. Freeman Russlink Energy
Ali Kadaster Anadarko
Jay Klassen NEYRFOR Turbodrilling
Mike Pavelka Kerr McGee
Jim Schumacher Texaco
John Shaughnessy BP
Damir S. Skerl SDCI-Houston
Robert Soza Burlington Resources
Bob Stayton GTI
Sam Varnado Sandia Labs
*Report out presenter
2 High temperature electronics and • Develop basic HT electronic components • Govt./academia/industry (advisory)
sensors that will work down hole • Develop HT batteries • Govt./academia/industry (advisory)
>400oF, 25,000 psi • Develop appropriate sensors • Govt./academia/industry (advisory)
3 Formation-blind drilling apparatus • Screen/assess existing innovations, equipment, methods, • Government subsidizes industry-led field tests
designs, and materials
• Develop new concepts • Industry lead / government provide access to basic science
and military technology (Petroleum Technology Transfer
Council)
• Establish independent clearing house for arms-length • Government - no commercial royalty tie-ins or lock-outs
evaluation of new concepts
4 Develop new methods for well • Provide seed money for concept development • Government / industry
control that will enable safer UBD
drilling in high-volume and high-
pressure wells
5 Mechanical components and • PDM motors with better seals • Government / industry. One approach is for industry to
materials for HTHP applications • Develop swivel packing w/ 7,500 psi rating fund an employee to work at a national lab for a 6-month
• Develop seals for numerous downhole components that can or longer rotation
stand 25 kpsi, 400-600oF, and exposure to corrosive
chemicals
• Transition from unit pricing to performance pricing • Industry (internal)
Participants
Drilling Diagnostics & Sensor Systems
NAME ORGANIZATION
Jim Albright Los Alamos National Lab
Perakath Benjamin Knowledge Based Systems, Inc.
Craig Cooley Ussynthetic
Roger Entralgo Energy Research Clearing House
Bill Hauser MMS
Richard C. Haut Halliburton Deepwater
Sudhendu Kashikar Schlumberger
Buddy King Nobel Eng. & Dev.
Jack Kolle Tempress Technologies Inc.
Tom Laylock Marathon Oil
Keith Millheim Anadarko Petroleum Corp.
Mike Nero Weatherford
Randy A. Normann Sandia National Laboratories
Jack Pruitt Halliburton Security DBS
Steven P. Rountree Prime Directional Systems
Roger L. Schultz Halliburton Energy Services
Gene Sparkman Energy Research Clearing House
Charles Thomas INEEL
Brad Tomer NETL
Paul Tubel* Tubel Technologies
Eddie Wright Texas A&M/ODP
Jiang Wu Chevron Petroleum
*Report out presenter
Participants
Drilling & Completion Fluids
NAME ORGANIZATION
Dave Burnett GPRI-A&M
Don Dreesen Los Alamos National Laboratory
Allen Gault* Conoco
Aston Hinds Halliburton Company
Fersheed Mody Halliburton Energy Services
Keith Morton Chevron
Eugene Pollard Ocean Drilling Program - TAMU
Wayne Stewart Drilling Specialties
*Report out presenter
The group first brainstormed on the barriers to achieving cost-effective systems. The issues were
then grouped into logical categories. Three major technical areas were identified: well integrity,
data acquisition and quality, and drilling processes and equipment. In addition, three non-
technical areas were identified: regulatory issues, the availability of technical expertise, and
technology risk. The complete results are shown in Table 1.
Based on these barriers, the group brainstormed on technology opportunities. The topics
identified and grouped into six general topic areas: simulation, materials and fabrication, tools
and techniques, sensors and data management, human resources and expertise, and risk
management. The group then voted on priority topics and the complete results are shown in
Table 2.
After voting, the top topics were aggregated into a set of five priority topics for which action
plans would be prepared. A sixth topic, risk analysis and risk sharing, was deemed a critical
cross cutting issue for the other five.
For each topic, the group identified products/deliverables, resources (knowledge and expertise),
who leads/collaborates, schedule, and dollars. Table 3 presents the complete results for the
action plans.
In addition to the products shown in the tables, a number of general issues and crosscutting
topics were noted during discussions.
♦ It is critical to view completions as an integrated part of well planning and design in order
to assure productivity over the entire well life-cycle.
♦ There is concern over the availability of technical expertise needed to apply advanced
technology. What may be termed the “expertise pipeline” for new talent, as measured by
college and university programs and the flow of students, continues to shrink. For
example, in one of the companies represented in the group, only 9% of the technical
workforce are less than 30 years of age.
♦ There is the need to consider “blue-sky” technology options that could provide
revolutionary approaches to completion tools and techniques. Part of developing these
options would be to examine and adapt developments (e.g., in electronics and
information technology) from outside the oil and gas industries.
♦ Bringing in technical expertise from outside the “typical” oil/gas world capabilities (e.g.,
reservoir engineering, geotechnical) can both facilitate the use of new technology and
prevent “reinventing the wheel.”
♦ Perhaps most importantly, in any technology development there is the necessity for
technology developers to understand the real-time needs and problems of field operations
and personnel. This particularly true for any “blue-sky” efforts to be successful.
♦ Table 1. Barriers
♦ Table 2. Opportunities
♦ Table 3. Action Plans
APPENDIX B: PARTICIPANTS
Jiang Wu
Drilling Engineer
Chevron Petroleum Technology
2202 Oil Center
Houston, TX 77073
Phone: (281) 230-2658
Fax: (281) 230-2669
E-mail: jian@chevron.com
Albert Yost
Division Director
National Energy Technology Laboratory
Gas Supply Projects
P.O. Box 880
Morgantown, WV 26505
Phone: (304) 285-4479
Fax: (304) 285-4469
E-mail: albert.yost@netl.doe.gov