E&P Notes (December 2016)

Abstract

E&P Notes Calculating Reserve Estimates Even for Solar Power Projects Stephen Rassenfoss, JPT Emerging Technology Senior Editor Compared to oil in the ground, the sun looks like a limitless energy source. Making comparisons of the two by calculating the equivalent of barrels of reserves for a solar project seems like an odd notion. But experts in reserves accounting say that it can and should be done, and are working on a way to do so. An arm of the United Nations (UN), with support from SPE, is working to adapt the system now used to track reserves of oil and minerals in the ground to apply to renewable power sources such as the wind and the sun as part of a long-term effort to cover other sources of energy. Oil Market Surplus Could Grow in 2017 Joel Parshall, JPT Features Editor Surplus production in the oil markets is likely to grow in 2017, and long-term oil prices will track with costs and not revert to the margin-inflated patterns of the shale boom. These were the separate conclusions of two energy economists and market analysts who spoke on oil, gas, and geopolitics at the Deloitte Oil & Gas Conference held in September in Houston. “Rebalancing is maybe a little further away than we would have all liked it to be,” said David Knapp, chief energy economist and senior editor for global oil market analysis at the Energy Intelligence Group. Developing Countries Will Lead Energy Demand Growth Joel Parshall, JPT Features Editor The world’s developing countries will lead economic growth and consume an increasing share of energy production globally over the next quarter-century, said Rob Gardner, manager of economics in corporate strategic planning at Exxon- Mobil at the Deloitte Oil & Gas Conference in Houston. For his presentation, Gardner drew data and analysis from The Outlook for Energy, A View to 2040, a report published by ExxonMobil (www.exxonmobil. com/energyoutlook). Moving Closer to True Picture of the Fugitive Methane Problem Trent Jacobs, JPT Senior Technology Writer The US shale sector has proudly touted the fact that it has helped reduce the nation’s carbon dioxide output to an 18-year low by producing the natural gas that is displacing coal use in power generation. But if government regulators and some environmental groups are applauding the transition from the most carbon-intensive fuel source to the least, they are holding back on a standing ovation. Iran Opens Field Investment to Global Bidders Joel Parshall, JPT Features Editor Iran’s national oil company is offering investment opportunities in 50 fields to global bidders, its first effort to do so since the 2015 pact with world powers that lifted nuclear-related sanctions against the country. Following an announcement by the Petroleum Ministry on 16 October that it would invite foreign companies to bid on field projects, the ministry the next day disclosed that 29 oil fields and 21 gas fields would be offered for bidding. International companies were given a 19 November deadline to submit applications, and the announcement of companies that qualify for bidding is slated for 7 December. The bid round is expected to open in January or February of next year. Extending the Life and Performance of Drillpipe With Wear Band Technology Trent Jacobs, JPT Senior Technology Writer Drillpipe doesn’t last forever, but a Houston-area startup company says it has developed a way to make it last significantly longer. WhiteHorse Technology calls its service product wear bands, which is an adaptation of a technology invented in the 1930s called hardbanding. Hardbanding is a welding process that is still used today to protect steel tool joints from excessive wear and tear by coating them with a sacrificial metal material.