Development Of Gas Industry Research Articles

Analysis of Gas Supply & Demand in China and Suggestions for China’s Gas Industry Development

The global natural gas markets are undergoing profound changes, with the supply and demand patterns in a historical transformation; the market supply and demand keep loose – both the gas traders and trade volume are increasing, the links between regional gas markets are enhanced, the gas pricing and trading mechanisms are diversified, the LNG trade share keeps growing, and the links between regional LNG markets are also strengthened. Influenced by the supply side reform and the accelerated urbanization, among other factors, gas consumption in China is increasing rapidly. However, the consumption of natural gas changes significantly from region to region, affected by the mismatch in gas production and consumption locations, as well as the gas import patterns. With the continuous energy restructuring in China, the gas consumption in different sectors is growing at very different paces. Analysis of the current situation, future trend and characteristics of China’s gas industry indicates that it is in the third stage of fast growth. Natural gas will play an even more important role in the future energy structure. With the continuous growth of gas consumption at home, the existing and expected gas deliverability is still faced with the risk of enlarging shortage in the mid-long term. In consideration of such circumstance, it is suggested that top-level design be strengthened on the national strategic level to seek rational, robust and scale development of the China’s gas industry. Internationally, diversified import channels should be sought to dilute supply risks, cooperation with the Asia-Pacific markets should be enhanced, and establishment of an international gas trading centre should be accelerated. Domestically, construction of a national gas interconnection system and a number of gas hubs should be speeded up, to make the gas industry an important component of the national energy network; the gas pricing mechanism should be established and completed as soon as possible to facilitate scientific allocation of profits and costs for gas production, storage and distribution, and to ultimately promote the sustainable and scale development of the whole chain of China’s gas industry.

Connotations of scientific development of giant gas fields in China

A giant gas field refers to a gas field with proved geological reserves of natural gas more than 30 billion cubic meters, peak annual output of natural gas more than 1 billion cubic meters, and a certain plateau period. It is an important foundation for the rapid growth of China's natural gas reserves and production and its long-term stable development in the future. And it is also the key to ensure the security of gas supply. By systematically analyzing the development practice of more than 260 gas fields at home and abroad and dissecting and simulating typical gas fields, this paper comprehensively studied the connotation, core technology and whole life cycle index system on the scientific development of giant gas fields. It is indicated that the scientific development connotation of giant gas fields consists of the following parts. First, the natural gas development concept with “water identification, control and treatment” as the technical system is put forward. That is to carry out “water-control development” in conventional gas fields and hydraulic fracturing development in unconventional gas fields. A reasonable gas production rate should be set according to the types and characteristics of gas reservoirs. Second, economic and social benefits of gas field development should be evaluated comprehensively to ensure its long-term stable production. Third, the suitable production stabilization mode shall be adopted according to the production characteristics of gas wells and the development characteristics of reservoirs. Fourth, the recoverable reserves of a gas field, the development laws of formation water and artificial water flooding, the ultimate recovery technological countermeasures of the gas field, the cost-effective stable period of the gas field should be determined based on the fine description of conventional and unconventional gas reservoirs in different stages, the development characteristics of gas reservoirs and the monitoring results of production performance. The core technologies in the scientific development of giant gas fields include large-scale optimization technology, scientific well arrangement technology, balanced production technology and deep potential tapping technology. Based on this, several parameters are selected comprehensively as the key indexes for the scientific development of giant gas fields, such as production rate, pressure drop, degree of reserves recovery and output per unit pressure drop, and the whole life cycle index systems for four types of gas reservoirs are established, i.e., high-pressure gas reservoirs, low-permeability and tight gas reservoirs, fractured–porous reservoirs, and shale gas reservoirs. In conclusion, the research results enrich and improve the theories of natural gas development geology and are conducive to guiding the scientific development of different-type giant gas fields, thus further promoting the rapid development of natural gas industry in China.

ДИНАМІКА СПОЖИВАННЯ ПЕРВИННИХ ЕНЕРГЕТИЧНИХ РЕСУРСІВ ТА ВИКИДІВ ВУДИНАМІКА СПОЖИВАННЯ ПЕРВИННИХ ЕНЕРГЕТИЧНИХ РЕСУРСІВ ТА ВИКИДІВ ВУГЛЕКИСЛОГО ГАЗУ В СВІТІГЛЕКИСЛОГО ГАЗУ В СВІТІ

Research and analysis of the dynamics of actual consumption of primary energy resources, their structure and production volumes from own resources and reserves in the world from 2007 to 2018 are presented. In 2018 84.6% of global PER consumption is hydrocarbons, including 57.4% oil and gas, and approximately the same ratio of hydrocarbon consumption has remained over the past eleven years. Similar studies and analysis have been carried out for Europe and for individual countries: 1) which produce the largest GDP (USA, China and Japan); 2) ensure the volume of PER consumption by extraction from its own resources (the USA, excluding oil); 3) do not provide the volume of PER consumption by extraction from own resources (Japan, Europe, India and China) and 4) have a different economic structure. Studies of the dynamics of CO2 emissions in these countries and the world, in general, over the period 2007-2018. It is shown that the high rate of increase in the use of renewable energy sources does not compensate for the increase in CO2 emissions, and this problem becomes relevant, especially for the energy production sector. Keywords: primary energy resources, fuel and energy balance, oil, natural gas, coal, consumption, extraction from own resources, renewable energy sources, emissions, carbon dioxide

WORLDWIDE SHALE REVOLUTION: SUCCESSES AND PROSPECTS

The article discusses the problems and prospects for the development of he shale oil and gas industry in a number of countries in North America, SHAPE \\* MERGEFORMAT the Asia-Pacific region, the EU, as well as in Russia. Wide geographical coverage allows a comprehensive study of the issue. The article is aimed at identifying factors that contribute to the development of the shale industry in the studied countries by comparing the oil and gas market conditions and the economic environment of a particular country (including the financial aspect). Analyzing the identified factors and policies of the studied countries in relation to the shale industry, the authors identify the most efficient trends for the development of the industry. The research methodology is based on the assessment of shale oil and gas reserves and export statistics, as well as financial market conditions and environmental standards due to their strong impact on the industry. Based on the obtained results, including the impact of the shale revolution on the economy, environment and public opinion, the authors have forecasted the development of the shale industry in the studied countries. Further, the authors have developed three scenarios that describe the future of the shale revolution. The most likely scenario, provided that more environmentally friendly production practices appear, is the further development of the shale industry in countries where the shale revolution was a success, as well as a further change in the global energy balance. Exporters of traditional oil and gas will have to compete with new players - exporters of shale resources; consumers will be in the most favorable position due to lower prices. Key players in the shale oil and gas market will have to develop new technologies to reduce the negative external effects of the industry.

Natural gas measurement technology system and its prospect in China

Natural gas measurement is an important basic job in national, social and economic development, and accurate and reliable measurement is an important guarantee for promoting the rapid development of natural gas industry in China. In this paper, the importance and characteristics of natural gas measurement were analyzed. Then, domestic and foreign natural gas measurement technologies were analyzed and compared from the aspects of measurement technological standard system, measuring instrument application technology, custody transfer metering mode in natural gas trade, measurement value traceability system and measurement management. Finally, the development of domestic natural gas flow metering technologies was summarized and predicted. And the following research results were obtained. First, natural gas measurement is a kind of large-quantity dynamic gas measurement with compressible medium, and the measurement result is derived from the flow rate, composition, temperature, pressure and other data under working conditions. Therefore, the accuracy of the measurement results cannot be guaranteed unless each basic data is measured accurately. Second, a natural gas measurement technology system has been established in China, including measurement laws and regulations, measurement technological standards and specifications, measurement value traceability technology, measuring tool application technology and measurement management system. Third, with the high-quality rapid development of domestic natural gas industry, China's natural gas measurement technology system will get improved continuously and be in line with international standards further. The guarantee for the reliability of measuring instrument may be transformed from compulsory verification to traceability based on verification or calibration, and the nationalization process of measuring tools will be sped up. In addition, the metering mode in natural gas trade will be changed greatly from volume measurement to energy measurement. In conclusion, China's natural gas measurement technology system basically guarantees the rapid development of its natural gas industry, but it still needs further improvement and completion.

Development of Oil and Gas Projects Based on the Cluster Approach on the Example of the Irkutsk Oil Company

Currently, world experience in oil and gas production shows that long-term economic impact of the industry can only be achieved if high value-added production capacity is established. The article analyzed the role of oil and gas industry worldwide and in Russia, noting relatively low level of hydrocarbon processing in Russia. The article analyzed international experience of various forms of state participation in creation and support of oil and gas clusters. Main trends in the development of gas and chemical industry abroad have been identified. We analyzed the current strategy for the development of chemical and petrochemical complex up to 2030. The conclusion is made about the need for state support for large-scale projects to create clusters in the field of oil and gas production and refining. The article described main stages of the project to create an oil and gas cluster in the Irkutsk Region - a gas project of the Irkutsk Oil Company.

The Optimization of Natural Gas Utilization Network in Single Region Using Pinch Analysis Method

Natural gas is one of the cleanest energy resources and may have potency to replace crude oil as main energy resource in several decades. There are some aspects which must be concern in the development of the natural gas industry including processing, storing, distributing and utilizing of the natural gas. The network of natural gas supply also should be generated to obtain the maximum natural gas recovery. However, it is difficult to determine the most suitable network system to connect the supply and demand of natural gas due to their different time scale, flowrate and capacity. There are some studies which investigating the network system to connect the supply and demand of natural gas but there are no systematical method in determination of the optimum natural gas network in single region supply-chain using pinch analysis. Therefore, in this study, a systematical method was developed to design natural gas network system in single region (East Java) using pinch analysis. The concept of natural gas cascade calculation was introduced. The heuristics of natural gas pairing between source and sink streams in grid diagram analysis was developed. Using 0-year time minimum difference give the amount of unutilized supply with value of 258.4 billion standard cubic feet (BCF) while 3-year time minimum difference give the amount of alternative and unutilized supply with value of 639.3 BCF and 897.7 BCF, respectively. The grid diagram heuristics developed in this study gives same results with the cascade calculation result.

The Evolution of Energy Market and Energy Usage: An Application of the Distribution Dynamics Analysis

There has been a general consensus that greenhouse gas emission is closely related with energy consumption. This study aims to sharpen understandings on the state of global energy transition by employing the distribution dynamics approach. Three major energy sources were investigated, including coal, oil, and natural gas. A distribution dynamics approach is used to analyze the data of almost all the countries and regions in the world. This study fills an important gap in the literature by providing several important findings. First, many countries would reduce their relative coal and oil consumption in the future but oil would remain to be the most common form of energy source. However, great variability can be observed for the distribution of gas consumption. Second, from the ergodic distribution of the gas market, it can be observed convergence clubs may emerge in the long run as the countries would congregate in certain clusters with similar levels of gas consumption. These findings call for further research and policy planning for the development of gas industry. Third, the distribution dynamics is very different for the four income groups (according to the World Bank), and so it is necessary to take a country’s income level into consideration in formulating energy policies. Fourth, our findings reflect the issue of global inequality amongst the countries as the energy consumption of the poor countries are much lower than the other countries. Fifth, oil is deemed to be the most popular form of energy sources for the upper-middle-income and high-income countries, while coal is not a preferred energy source for the affluent countries, thereby suggesting the need to provide aid to the poor countries for mitigating the use of coal. Finally, gas consumption seems to have a very high variability and the countries can have very different consumption patterns of gas even if they belong to the same income category, implying that country-specific policies should be formulated for the development of the gas industry. Furthermore, it is observed that for the lower-middle-income and upper-middle-income countries, the big consumers of gas tend to increase their gas consumption further.

Hydrate deposition prediction model for deep-water gas wells under shut-in conditions

Natural gas hydrate is one of the major issues in the development of deep-water oil and gas industry. The shut-in operation increases the risk of hydrate formation under higher pressure and lower temperature conditions. Conventional hydrate prevention methods may inject excessive amount of inhibitors, which leads to additional cost and environmental pollution. There are few studies on quantitative prediction of hydrate formation and deposition after deep-water shut-in. In this paper, a prediction model of hydrate deposition considering water vapor condensation and liquefaction for deep-water gas well under shut-in conditions is established. The deposition model is divided into transient and steady stage based on the variation characteristics of temperature. During the process of hydrate formation after shut-in operation, the consumption amount of free water is used as the verification parameter in this paper, and the average error between the experimental results and the simulations is 11.75%. The simulations suggest that the amount of hydrate deposition will increase as the shut-in time increase and the initial temperature raise along with the change of production parameters, but the overall deposition amount is small. Furthermore, especially in the short-term shut-in operations for deep-water gas wells, the low rate of water vapor diffusion and liquidation causes a small amount of deposited hydrate, which is not serious enough to cause blockage issues. The simulation results changed the conventional prevention recognition and it is helpful to decrease the cost of hydrate management. This study can serve as useful suggestions for the design and optimization for deep-water gas wells under shut-in conditions.

Mechanical Response and Performance Relationship of X70 Pipeline Steel with Weld Zone

With the development of the natural gas industry, high flux natural gas pipelines will cause local deformation because of pressurization, which has an important effect in the service safety of pipeline materials. In this paper, the X70 pipeline steel with weld zone was studied, and the tensile test was used to simulate the uniaxial tensile stress. The results showed that the strain was mainly concentrated in the weld zone, which can imply that the weld zone has high strain hardening ability. The heat-affected zone with poor internal structure was prone to breakage. The research results can provide theoretical basis and experimental basis for pipeline steel welding process design and safety evaluation under high flux conditions.

CURRENT STATE OF OIL AND GAS INDUSTRY IN RUSSIA AND ITS DEVELOPMENT TRENDS

Russian oil and gas industry has undergone a number of changes over the past 20 years. The volumes of oil and gas production changed, the production site moved to the eastern part of Russia, innovative solutions were introduced in the field of oil and gas production, as well as their subsequent processing, the number of players in the market and the price of oil and gas changed. All this set the trends in the development of oil and gas industry in Russia in a new direction for it. This article discusses the current state of oil and gas industry in Russia and identifies the main trends in its development.

Economic assessment of heat and power generation from small-scale liquefied natural gas in Russia

Small-scale production of liquefied natural gas (SS LNG) is a promising, but little-known direction of the gas industry development, which is aimed at meeting the needs for environmentally friendly decentralized energy supply of nearby regions. In this study, an economic efficiency of four energy generation options, based on SS LNG, with nominal capacities from 0.3 to 3 MW was assessed. Total cost of heat and electricity at different delivery distances was determined. A number of regression models were developed to determine the key technical and economic characteristics of energy plants. The results showed that only 9 out of 85 Russian regions have sufficiently high tariffs for heat and electricity for effective SS LNG energy generation. It was also found that the average cost increase depending of delivery distance is 1.23 %/km for electricity and 2.51 %/km for heat.

Development of the Arctic gas industry and prospects for the Russian LNG market in the Asia-Pacific region

The article is devoted to the study of the development of the Arctic gas industry and the prospects of LNG sales in the market of the Asia-Pacific region. It is shown that the largest projects for the production of liquefied natural gas in Russia are concentrated in the Yamal-Nenets Autonomous district - “Yamal LNG” and “Arctic LNG - 2”. The growth of economies, partial abandonment of nuclear energy and coal contributes to the growth of natural gas consumption in the countries of the Asia-Pacific region. Japan, China and South Korea remain the largest LNG importers. The analysis showed that South Korea and Japan, despite all efforts to reduce energy consumption, are interested in increasing the volume of purchases of Russian liquefied natural gas. To meet their needs, Japanese companies “Jogmeg” and “Mitsui” purchased a 10% stake in the “Arctic LNG - 2” project for $ 25 billion. China, having concluded a trade agreement with the United States, will try to meet the growing demand for oil and gas through the supply of American energy resources. However, given the decline in the number of operating rigs in the United States, it is not certain that China will not need additional supplies from other exporters.

Основные проекты водородной стратегии Японии и их потенциальное влияние на перспективы развития нефтегазовой отрасли России

Основные проекты водородной стратегии Японии и их потенциальное влияние на перспективы развития нефтегазовой отрасли России

Инновационное развитие нефтегазовой отрасли России – приоритет в подготовке кадров на факультете инженерной механики

Инновационное развитие нефтегазовой отрасли России – приоритет в подготовке кадров на факультете инженерной механики

ЦИФРОВИЗАЦИЯ КАК КЛЮЧЕВОЕ НАПРАВЛЕНИЕ РАЗВИТИЯ РОССИЙСКОЙ АРКТИКИ

This paper examines the role and place of digitalization processes in improving the efficiency of public administration in the Arctic zone of the Russian Federation and in the development of the oil and gas industry, which is key for the region. It is shown that the most promising for the development of the Arctic as a whole is the key principle, the essence of which boils down to the formation and development of a digital management system for the region through the formation of a “digital image” or “digital twin” of the entire Arctic socio-technological and natural system in the global world, which are a set of models describing properties and dynamics of the system depending on internal processes and external influences. The digitalization of public administration in general is the best fit for the most promising “noospheric” strategy for coordinating human activities in the Arctic. This means that the formation of a "digital image" of the region becomes, when the above approach is adopted, the main task of Arctic science and the most important task of Russian science in general.

The primary assessment of the economic efficiency of strategic trends of development of gas industry in Russia

Economic, geopolitical and energy instability, both on the global and regional markets, as well as the high dependence of the Russian economy on the oil and gas sector (60% of export revenues and 45% of the state budget revenues in 2018) actualizes the renunciation of the export-raw material vector of the development. The author identifies key strategic directions for the transformation of the gas industry in Russia, and raises the question of the primary assessment of the economic efficiency of their realization. So, the author proposes approach to the primary assessment of strategic priorities through econometric modeling of vector autoregression (VAR) and distributed lag autoregression (ARDL); he also identifies the advantages and disadvantages of these models when conducting a primary assessment of economic efficiency. After that, the author presents and explains the results of the primary assessment of the economic efficiency of these strategic priorities on the example of the impact on economic growth, both in the short and long term. Also, the obtained results are compared with the studies of other authors, which confirm the adequacy and possibility of applying the author's approach to the primary assessment of the economic efficiency of the strategic priorities of the gas industry in Russia.

Analysis of the development of Oil and Gas Industry in present conditions

Purpose of the study. This study examines the state of companies of oil sector based on the analysis of dynamics and relationship between basic financial indicators, characterizing the activities of oil companies; it identifies factors affecting the companies’ efficiency, such as return on sales (ROS) and productivity. The work is based on dynamic, structural, correlation analysis of analytical and statistical information on processes occurring in this area of economic activity.Materials and methods. Statistical data and analytical information on oil sector companies serve as the information base of this study. Statistical methods of information analysis (comparative analysis, analysis of time series, correlation, and regression analysis) represent the methodological base of research.Results. The authors analyzed the development trends of the global and Russian oil and gas sectors. The last two decades have been marked by changes in the global oil market that were caused by fluctuations in the price of oil and oil products and with the rise and fall in the price of Brent crude oil per barrel.The paper considers dynamics of financial indicators of Russian oil companies. An analysis of the data on the revenue of the largest Russian companies in ruble and dollar terms over the last 10 years has revealed a significant difference in the dynamics of these indicators. The authors performed ROS and oil price profitability correlation as well as correlation between the price of oil, the exchange rate and the profitability of oil companies.Conclusion. The oil and gas industry is an essential sector of the economy that heavily promotes to the socio-economic development of our country. Revenues of the oil and gas sector contribute to the Russian GDP and are a major component of the budget. There are two ways to calculate revenue of oil companies – in ruble (dollar terms) and impact of RUB/USD exchange rate. The sharp changes in the exchange rate of the last decade have advanced significant changes in the revenue of Russian oil companies.In this study, the total revenue (in dollar terms) was calculated as the ratio of revenue in rubles to the average annual exchange rate of the corresponding period. In general, the disastrous results of 2015 and 2016 led to a decrease in the average growth rates of dollar and ruble revenue, as well as profit and profitability.The authors performed a correlation analysis of return on sales and oil prices, which revealed an almost total absence of correlation between these indicators. Oil prices and exchange rates have a negligible effect on the profitability of oil companies. An inverse correlation is observed between the RUB/USD pair and the oil price per barrel. It is concluded that the cost of oil and the exchange rate have little effect on the profitability of oil companies.Since the oil and gas complex makes a very significant contribution to the development of the country’s economy, it is advisable to analyze its development trends on a regular basis. Based on the results of the economic and statistical analysis of financial indicators, it is possible to identify the main development directions of the oil and gas industry, evaluate positive and negative processes, and determine further prospects.

The Establishment of the Gas Enterprise Based on Market-oriented Management Mode

With the rapid development of the domestic natural gas industry, the competition in the gas industry is becoming more intense. In order to improve the service management level and maximize the value of the enterprise, the Huagang Group actively constructs an enterprise management strategy that adapts to the market operation, meets the needs of consumers, provides suitable products and services according to the requirements of consumers, and establishes a diversified assessment system. With the brand as the core, we will actively explore domestic and foreign markets. Through the establishment of a market-oriented management model, an organization, resource guarantee, staff team, production operation and management system adapted to the development of the natural gas market will be established to comprehensively improve the efficiency of the enterprise.

Modular Construction and Standardization of CNG and LNG Filling Stations Exploration and Practice of Operation Management

With the rapid development of the natural gas industry, it gradually replaces oil fuel and penetrates into all fields of production and life. In view of the current huge energy demand, Huagang Group must accelerate the construction of CNG and LNG filling stations, reduce the construction and production operation costs, shorten the investment recovery cycle, and improve the management of gas business from fine management in order to occupy a place in the gas market. Level and social competitiveness, fundamentally eliminate the safety hazards of high-risk gas companies, and explore a standardized and efficient operation mode in modular construction and standardized operation management.