E&P Notes (November 2018)

Abstract

E&P Notes Study Finds Methane in Water, but not From Oil Drilling Stephen Rassenfoss, JPT Emerging Technology Senior Editor A multiyear study of water wells in rural areas during intensive development in the Utica Shale found that some had high levels of methane (CH4), but chemical testing showed that was not the source of that gas. Based on the carbon isotopes identified in the well water samples collected by researchers, the methane was from shallower depths. This biogenic gas was likely produced by bacteria in places like the soil and in coal seams, according to the study in the June 2018 issue of the journal Environmental Monitoring and Assessment. There are “production-scale coalbed CH4 reserves in the study area but no active coalbed gas wells,” it said. Huge Zohr Field Off Egypt Flows at 2 Bcf/D Matt Zborowski, Technology Writer The Zohr Field offshore Egypt is now flowing at more 2 Bcf/D, or 365,000 BOE/D, less than a year after it started production. The benchmark comes as operator Eni solidifies concession agreements and ramps up exploration and development in the North African country. The Italian multinational firm has started up the project’s fifth production unit, T4, which consists of eight production wells and a 218-km, 30-in. OD pipe-line commissioned in August. Production is expected to plateau at more than 2.7 Bcf/D in 2019. US Now Top Global Oil Producer but its Limits are Showing Stephen Rassenfoss, JPT Emerging Technology Senior Editor The US has “likely surpassed” Russia as the world’s largest oil producer, according to a US Energy Information Administration (EIA) report. While that is a point of pride for US producers, over the next year US energy users likely will be hoping for more competition at the top as tighter supplies are expected to drive up oil prices. The US reached the top due to a multi-year surge in production from unconventional plays at a time when Russia and Saudi Arabia limited production growth to shrink excess inventories of crude and push up prices. Satellite Imaging Shines Light on Oil Production Sites Stephen Rassenfoss, JPT Emerging Technology Senior Editor Oil producers are a secretive lot, but satellite imaging is offering increasingly detailed reports on what is happening on the ground. Satellite imaging used by the World Bank to estimate emissions from flares burning billions of cubic meters of natural gas every year offer an indirect look at oil output. “Economics and changes in oil production result in changes in flaring,” said Martyn Howells, technical network coordinator in energy for the World Bank, adding, “The amount of gas you flare for a given volume of oil is pretty constant.” ExxonMobil Logs Another Guyana Find ExxonMobil made its ninth discovery offshore Guyana, possibly creating the greatest value of any offshore basin in the Americas. This is the company’s fifth discovery on the Stabroek Block in the past year and proves a new play concept for potential development. The Hammer-head-1 discovery encountered approximately 197 ft (60 m) of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 ft (4225 m) depth in 3,373 ft (1150 m) of water. “The Hammerhead-1 discovery reinforces the potential of the Guyana basin, where ExxonMobil is already maximizing value for all stakeholders through rapid phased developments and accelerated exploration plans,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Development options for Hammerhead will take into account ongoing evaluation of reservoir data, including a well test.”