Meeting the Challenge: Advancing Seismic Technology in Frontier Exploration and Development

Abstract

Abstract The petroleum industry, today is entering a new era of still lower commodity prices, while at the same time, it is challenged with industry-reshaping opportunity. Major new oil and gas resources are being discovered in deep water and other frontiers, primarily in the Gulf of Mexico, Brazil, West Africa and remote gas resources such as those in Austral-Asia. Although these opportunities are prolific, realizing their potential, with volatile and possibly declining oil prices, will be a major challenge for the energy industry. Because of the enormous capital investments needed to start the revenue flowing from these projects, better pre-drill/pre-sanction prediction is needed earlier in the exploration and development cycle. Continuing to make technological progress and applying this knowledge effectively will determine when and who gets to succeed. A particular challenge is the improved level of effectiveness needed from our seismic tool. Multiple attenuation, or the techniques for removing multiply reflected events from seismic data, is an increasingly important component of the seismic imaging process, especially in geologically complex settings. There has been considerable progress in this area; however, much remains to be done. This special session will focus on the development, application and impact of multiple-attenuation methodologies and set the stage for future advances. Introduction Early in 1999, the price of oil collapsed to levels far below the average prices realized over the past 30 years. There probably were not many of us who didn't wonder sometime during this period whether the global drive to explore and develop deep water and other frontier basins was at an end. Both the U.S. and International (non-OPEC) rig counts hit all-time lows. Restructuring and merger activity intensified. How quickly the landscape changed again. OPEC restraint, among other factors, has raised prices (Fig. 1), but should we be reassured? Continuing volatility seems to be the one thing we can count on. Fig. 1 - Recent oil price cycles illustrate the volatility and uncertainty (Available in full paper) Before we look further at this economic landscape, we should understand the industry's drive for growth and renewal and its incredible push into deep water over the last fifteen years. The Deepwater Prize Global exploration continues to push into more remote areas and deeper water to target opportunities that are just too exciting to be denied. Over 35 billion barrels oil equivalent have been found, to date, in water depths over 500 meters1 (Fig. 2). Atlantic margins, principally in the Gulf of Mexico, West Africa and Brazil account for most of the resources discovered (Fig. 3). Deep-water arenas in the Gulf of Mexico and West Africa are seeing unprecedented activity and other exciting plays are underway around the world. Global deepwater leasing and drilling continue to trend upward, reflecting industry optimism, even in light of price stress and uncertainty (Figs. 4 and 5). Fig. 2 - Worldwide deep-water discoveries total more than 35 billion boe; about two thirds oil. Source: Shell1 (Available in full paper) Fig. 3 - Deep-water discoveries are concentrated along Atlantic margins. Primarily in Brazil, Gulf of Mexico and West Africa Source: Shell1 (Available in full paper)