National Oil Research Articles

Petroleum++: The Expanded Scope of the Industry and Our Role in It

The expanded scope of our industry as it evolves means that members of the petroleum engineering profession will enjoy a long, rewarding career. At the same time, we need to continue developing our competencies to enable expected contributions in producing new forms of energy resources and mitigating climate change concerns, as well as the constant changes and advancements in our traditional role of producing oil and natural gas. Based on the projections of multiple groups including the US Energy Information Administration (EIA), the International Energy Agency (IEA), and several international and national oil companies, it is clear the world energy demand will continue to grow into the 2040s. Lower-carbon sources will be the fastest-growing among the various sources of energy, demand for oil will continue to increase at least into the 2030s, and demand for natural gas will continue to grow into the 2040s. The latest projection from IEA (October 2022) illustrates these points. For example, as I am writing this column, Norway approved more than $18 billion investments to develop 19 oil and gas fields. Consensus also appears to indicate that policy will influence the speed of change of the energy landscape, that energy transition will vary by region, and that the pace of the energy transition will depend on costs, infrastructure, project execution, and geopolitics. This indicates that multiple solutions are needed to satisfy energy demand, oil and gas will remain essential for decades, and technological developments will continue to be needed in all sources of energy and may end up changing the mix of energy sources in the future. Data and projections also show two important points. The required levels of investment to provide the world with its energy needs are lagging, and there will be a shift in the regional demand of energy. Needed investment in oil and gas should be about $900 billion annually. Following the COVID-19 pandemic, when investment dipped to $600 billion, investments have gradually increased but are not yet to the desired levels. For the new energy sources to reach the level needed for IEA’s Net Zero 2050 target, annual investment in the range of $2,600 billion is needed. Right now, this investment is around $1,700 billion. Projections for the regional share of the world economy indicates that Asia will have about 43% of the world economy by the year 2040 (currently at 35%) followed by North America at about 24% (currently at 26%) and the EU and the UK at about 17% (currently at 20%). Shares of Latin America and the Middle East will stay around the current levels of 7% and 4%, respectively, while Africa’s share will increase from about 4 to 5%. The tables show the changes in global primary energy demand as well as the changes in different regions. I obtained the information from the sources cited earlier. However, I converted the values from exajoules (1e18 joule, a measurement unit I cannot relate to) to BOE using a conversion factor of 1 exajoule = 163.45e6 BOE.

Effects of Oil spillage on the Socio-economic welbeing of Artisanal Fishermen in Akwa Ibom State, Nigeria

This study assessed the effect of oil spillage on the socio-economic wellbeing of artisanal fishermen in Akwa Ibom State, Nigeria. Primary data were obtained from 200 artisanal fishermen using multi-stage sampling procedure and analyzed using descriptive statistics and Likert scale ratings. Results showed that the mean age of fish farmers in the area was 40 years and majority (57.0%) were married. Fishermen were quite educated (93.5%) with a mean of 12 years of educational attainment, The mean household size, farming experience and income were 6 persons, 9 years and N600,000, respectively. The major causes of oil spillage were; drilling of oil well, illegal facilities, spill from storage facilities, corrosion of oil pipelines, faulty production equipment, natural disaster, leakages from oil tank, oil theft, shipping accidents, cleaning of oil tankers on the high sea and spills from vandalized oil pipelines. Findings showed that oil spillage reduced the income of fishing household, led to food insecurity, deteriorated the health status of fishermen, polluted the environment, led to migration of fishermen out of the affected areas and resulted in abandonment of artisanal fishing operation for other livelihood operation. Findings further showed artisanal fishermen’s coping strategies to include; migration to other communities, livelihood diversification, extension of fishing time, involvement in community and individual level savings, attending enlightenment programs on coping with effects of crude oil spillage and frequently changing the timing and location of fishing trips. This study therefore recommended that the federal government should implement an aggressive national oil spill contingency plan which includes the cleanup of polluted areas and payment of reparations to affected artisanal fishermen in Akwa Ibom State.

Marginal Fields Development in Nigeria: A Review of Extant Strategies

This paper focuses on the development of marginal fields in Nigeria, the challenges, economic viability, and the role of the government in implementing the contributions of marginal fields to the national oil production output. Also, the previously reported marginal field development and management practices in the Niger Delta oilfield are x-rayed. Following the definition of the marginal field is an overview of different types of marginal field development in the Niger Delta region. Also, the United Kingdom Oil and Gas Recovery Regulatory Commission, the United States Security Exchange Commission, and the Nigerian government's categorization of what compose of a marginal field are included. In addition, the participation of the Nigerian federal government and contributions to the development of marginal fields in the bidding of marginal assets to the development of infrastructure are presented. Particular attention is paid to the factors that affect the development and choice of production strategies in the marginal fields of the Niger Delta. These factors discussed in detail in the document include environmental, technical, social, political, and economic factors. Again, different management and development strategies used by some marginal fields of the Niger Delta are x-rayed and presented with a particular focus on three of those strategies. The three common approaches in the Niger Delta marginal field development strategy are water flooding, infill drilling, and infrastructure sharing. These approaches have made marginal fields in Nigeria operational, competitive, and economically viable to date.

Knowledge Management Implementation to Improve Performance in Testing and Subsea Division at Big Red Company

The approaching retirement of experienced petroleum engineers and technical staff, which threatens to result in the loss of a significant quantity of cumulative knowledge and expertise, is one of the major challenges facing the industry. Within the next ten years, it is predicted that approximately 231,000 years of collective knowledge will be on the line. To overcome this difficulty, knowledge management has emerged as a major method. This research investigates the strategies, tools, and processes implemented to successfully capture, organize, and share knowledge across the organization through a thorough analysis of the KM initiatives undertaken by Big Red Company. With a focus on their effective application by national and international oil companies in Indonesia, it also examines the results and impacts of these KM practices on the company's performance and competitiveness in both local and global contexts. Considering these circumstances, the company needs to improve the knowledge management system for managing knowledge, which is through the implementation of a Knowledge Management (KM) system. In doing this, the research is based on two research questions. The first is how is the current Knowledge Management maturity level in the Big Red Company Operation Division, specifically in the Testing and Subsea, and the second is What is the knowledge management implementation plan that can be suggested related to the proposed knowledge management process after knowing the maturity level of knowledge management in Big Red Company. These two research questions will be answered using theories related to knowledge, knowledge management, and two knowledge management frameworks, namely APO Knowledge Management Framework and Socialization, Externalization, Combination, Internalization (SECI). Because a qualitative method is used in this research, data is collected through interviews and observations, which are then analysed using thematic analysis. The results of data collection show that there are several issues related to the APO KM Framework and SECI frameworks. These issues range from the limited in the Testing and Subsea division, which is in Operation Division, the lack of knowledge sharing processes within and between teams, the lack of proper knowledge transfer, difficulty in accessing knowledge and information due to manual access, and others. Through the utilization of APO KM Framework and SECI frameworks, the author was able to design a knowledge management system by formulating several tools, for example, Coaching, Training, Knowledge café, Lesson-learned documents, K-based exit interview, and e-learning. With a total of 12 (thirteen) knowledge management tools or techniques, the company now has the ability to identify the knowledge needed, capture the knowledge, store the knowledge, share the knowledge, and effectively utilize knowledge and information which can improve the organization’s performance, enhance decision-making processes, and foster innovation and collaboration, thereby gaining a competitive advantage in the lifting equipment industry which ultimately contributes greatly to the growth of the company. For the knowledge management system implementation process, it will be divided into 5 (five) stages: Preparation, Identification, Development, Implementation and Evaluation to ensure that the knowledge management system is implemented effectively, its impact can be measured, and areas for improvement can be identified to make necessary changes. Implementation will begin in January of 2024, and there will be a dedicated Person In Charge (PIC) for all knowledge management initiatives to monitor the progress and ensure the sustainability of this system.

Hubungan inflasi, minyak dunia, dan sektor transportasi dan logistik

In addition to impacting world oil prices, global inflation conditions at the beginning of 2023 also triggered changes in the national inflation rate and tended to have an impact on the transportation and logistics index. This study aims to examine the relationship between national inflation, world oil, and transportation and logistics index. This study finds that neither the rate of return of world oil prices nor the national inflation rate has an insignificant relationship with the transportation and logistics index. These results imply that increases or decreases in world oil prices tend not to be followed by fluctuations in the transportation and logistics index. At the same time, these results also imply that changes in the national inflation rate will not be accompanied by changes in the transportation and logistics index.

Oil Price Volatility, Macroeconomic Policy & Economic Growth

Since oil entered the production and life of mankind, it has profoundly affected and changed the whole world. With the continuous development of society, oil has become one of the indispensable energy sources for modern industrial production and life. At the same time, petroleum, with its special commodity attribute, is closely linked with national strategic interests and is an important strategic material for all countries in the world. The fluctuation of the international oil market and the change in the oil price are pulling the development of the global economy, even contributing to the outbreak of the financial crisis. In this paper, the three major oil crises in history as a starting point, from the nature of oil to seek the international oil price fluctuations, and fluctuations of the theoretical basis to build a new theoretical analysis of international oil price fluctuations path. From the aggregate supply, aggregate demand, and other, specific aspects of the impact of international oil price fluctuations on the macroeconomy. At the same time, an analysis of China and the west monetary policy explores the national currency, monetary policy, and international crude oil price fluctuations between the relationship. Finally, the paper discusses the influence of the fluctuation of international crude oil prices on the national macro-economy, and takes China as an example, drawing the conclusion that the change in oil prices will have many influences on the national macro-economy.

SOSIALISASI PRUNING SANITASI POHON KELAPA SAWIT DI AFDELING VI WILAYAH 1 PT. NUSAINA GROUP

Oil palm (Elaeis guineensis) is an important commodity in the national economy. The demand for national vegetable oil which continues to increase throughout the year makes this commodity popular with local and even foreign businesses. The oil from this plant is processed into CPO and KPO. Good quality oil palm fruit is inseparable from good maintenance of oil palm trees. One of the maintenance carried out is sanitation pruning of oil palm trees. Oil palm pruning activities are one of the problems faced in oil palm plantations because they consider the task to be trivial. Therefore, one way to remind farmers and employees of oil palm plantations about the importance of pruning sanitation is by empowering them to maintain oil palm trees. To support this program, socialization was carried out regarding the importance of sanitary pruning of oil palm trees in increasing production by Pattimura University Individual Thematic Community Service Students Batch XLIX Batch II Academic Year 2022/2023. One of the villages targeted for implementing this program is the village of Waimusi, North Seram Timur Kobi District, Central Maluku Regency. This service activity uses the socialization method and direct practice in the field. The socialization process related to the importance of Sanitation Pruning Oil palm trees as one of the important objects in the maintenance of oil palm is presented in oral form, then followed by work practices in the field. The results of this activity are employees who are specifically engaged in sanitation pruning work objects

Executing Upstream Oil and Natural Gas Business Activities: Legal Status and Authority of the Oil and Gas Special Working Unit (SKK)

The Oil and Gas Special Task Force (SKK Oil) is a government agency responsible for controlling and supervising upstream oil and gas businesses. This study aims to examine the legal position of SKK Oil as the executor of national upstream oil and gas business activities and its role in promoting national energy security. The research utilizes an empirical juridical legal research method with qualitative research specifications, providing a focused and in-depth analysis of the subject matter. Secondary data obtained from primary, secondary, and tertiary legal sources are used in this study. The findings reveal that the National Oil and Gas Management Policy has not fully aligned with the goal of achieving national energy security.

Technical formulation for estimating the economic loss impact of the smallholder oil palm replanting program in Indonesia

In Indonesia, the smallholder oil palm plantations constitute 42% of the national oil palm plantation area. Therefore, the success of increasing the productivity of smallholder palm oil will have a major impact on the sustainability of the national palm oil industry. Replanting aging oil palm trees is a priority in Indonesia. Old trees become less productive, and to maintain or even increase yields to meet the demand for palm oil without increasing land used, replanting is necessary. For large agribusinesses, replanting is done regularly, however, for smallholders, this can be a challenge for various reasons mainly related to loss of income, lack of labor, and uncertainty about the process. It is important to determine the impact of the smallholder palm oil replanting program (SPR Program) in stages as a material for consideration in formulating more anticipatory and responsive policies so that they are right on target.The indicator of temporary loss of income is generated through a gradual calculation at three economic levels, namely household (micro), sectoral (agriculture) and regional (macro) economy. The calculated indicator value is in the form of a relative value that can be used as a reference in decision making, using the approach of the proportion of affected households and the level of temporary income loss, but in general the two approaches have a unidirectional relationship. The method developed in stages in this paper is recommended to be used in making decisions in government intervention policies in the context of handling the negative impact of the SPR Program as well as programming and community empowerment activities. A priority policy to prepare households and regions to face temporary loss of income sources due to the SPR. Empowerment policies that contain a priority scale both from the target group, implementation time, and period as well as the form of activities and programs according to their potential and needs. Key words: palm oil, replanting, temporary loss of income, empowerment, policy

Conceptual Management Framework for Oil and Gas Engineering Project Implementation

More than half of the global demand for energy resources is covered today by oil and natural gas, and according to various forecasts, it is expected to grow 1.5–2 times greater over the next 30–50 years. This creates serious prospects for the development of the national oil and gas sectors of various countries, including Russia. Modern industry challenges create significant restrictions for the development of Russian oil and gas resources, and considering their predominant technological nature, the key solution is the increase in internal technological potential, in particular through the implementation of engineering projects aimed at creating the necessary technological solutions. This article presents an approach to the development of a conceptual management framework that will allow for the effective implementation of oil and gas engineering projects. The methodology of the research includes desk studies, systematization, the expert method (including interviews and questionnaires), grouping, generalization, and algorithm design techniques. The results of the study showed that effective implementation of engineering projects should be based on a systematic management approach, one of which is the TRA process. This article analyzes the TRA methods, on the basis of which key project readiness indicators are identified. Based on a literature review and the expert method, the relevant readiness indicators necessary for the assessment of oil and gas engineering projects are substantiated. Given these indicators, the authors proposed a framework for a comprehensive readiness assessment of oil and gas engineering projects and developed an algorithm for management decision-making on project implementation.

Control of Brazil’s Braskem may change

Novonor says it is evaluating a proposal from Abu Dhabi National Oil Company (ADNOC) and the private equity firm Apollo Global Management to acquire its controlling stake in the Brazilian petrochemical maker Braskem. Novonor, a Brazilian engineering and construction conglomerate formerly known as Odebrecht, owns 38.3% of Braskem’s total shares and 50.1% of its voting stock. The offer would potentially value Novonor’s stake at approximately $2.9 billion. The Brazilian state oil company Petrobras owns 36.1% of Braskem’s shares and 47.0% of its voting stock. Braskem, Latin America’s largest petrochemical maker, generated sales of $18.7 billion last year. It operates four ethylene complexes in Brazil. It also has a polyethylene joint venture in Mexico and a large US polypropylene business. Novonor faces big fines, including $2.6 billion from the US Department of Justice, for its involvement in a Brazilian corruption scandal. It has been looking to sell its Braskem stake for

Contract Structure of Production Sharing Agreement by International Oil Company in Exploration of Petroleum Resources in Developing Countries

Presently, there is little focus on the contractual agreement, particularly on the production sharing agreement by the International Oil Companies in the exploration of petroleum resources of developing countries. The primary objective of this paper is to critically explore the contract structure of production-sharing agreements by International Oil Companies in the exploration and development of petroleum resources in developing countries. Content analysis was used as the methodology of the study after examining several literatures. The findings indicate that the contract structure of the production sharing agreement (PSA) between National Oil Companies (NOC) and International Oil Companies (IOC) plays a significant role in the cost and risk of exploration and development of oil. In addition, it is noted that the joint committee of the NOC and IOC plays a paramount role in monitoring the operations of PSA between the NOC and IOC. Hence, from the gross oil production, the NOC gets its share as profit while IOC gets its share income tax. As an instrument of contract structure in the oil and gas sector, PSA needs further entrenchment between IOC and NOC to avoid likely issues that can emanate between the two parties in the face of current developments.

Upscaling CCUS in Asia Pacific – a look at upstream synergy projects and potential for multi-user hubs

Carbon Capture, Utilisation and Sequestration (CCUS) has sustained its momentum as a key technology requirement for Asia Pacific countries to achieve reduced emissions and net-zero targets in the long term. Looking at the upstream E&P (Exploration & Production) industry and with gas being an integral part of the region’s energy mix, we are seeing companies assess integration of CCUS in key gas developments and take initial steps in creating multi-user storage hubs. Moving towards realising these projects however remains the main uncertainty with key legal, regulatory and fiscal incentive drivers required. International Oil Companies (IOCs), National Oil Companies (NOCs), independents and local companies are all participating, initiating partnerships and collaboration with other industries (for potential CO2 sources) towards integrated feasibility assessments and fast-track pilot projects. Focus CCUS projects between countries are also different, with a few leaning towards utilisation of CO2 through Enhanced Oil Recovery (EOR) and Enhanced Gas Recovery (EGR). Others look to establish more storage-related projects and hub creation. How each country has moved towards providing a solid regulatory framework and incentives to enable more commercial-scale CCUS projects is also different. This presentation will aim to: Compare CCUS projects, regulatory and incentive trends in Australia with those in key producing countries in Asia Pacific. Look at emissions reduction and economic impact of CCUS in gas projects and what factors will drive further implementation and upscaling. Provide perspective on hub potential for Australia and South East Asia. Compare and identify early successes, challenges and drivers in upcoming multi-user hub projects in Europe which we could learn from.

Collaborative Approach Solves Upstream R&D Challenges

_ This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper SPE 211115, “IBTIKAR Digital Laboratory: A Collaborative Approach Toward Research and Development Challenges in Oil and Gas Upstream,” by Rauf Iqbal, Pranav Kumar, and Muhammad Aamir, ADNOC, et al. The paper has not been peer reviewed. _ The complete paper describes creation of an approach involving a research and development (R&D) environment that supports the business community. The operator’s Ibtikar laboratory is the result of an initiative to develop and provide in-house infrastructure (hardware and software) support within a national oil company’s operations. This synopsis is mostly devoted to a description of R&D challenges faced by the developers and the steps taken to overcome them. Efficient Seismic Attribute Extraction for Azimuthal or Angle Stacks An asset team acquired a few high-density broadband single-source, single-sensor seismic surveys characterized by an enormous amount of data. From acquisition to processing, multiple subcubes (90 GB/cube) were produced for the purpose of capturing subtle geological features. On a conventional machine, loading of the seismic cubes took 40 hours and realizing them took more than 7 days—and this was for only one seismic attribute. To fully use the data in the static and dynamic models of the respective reservoirs, the asset team collaborated with the team behind the described “digital laboratory” to provide a solution best suited for such a large processing requirement. The latter team analyzed the existing system, estimated requirements, and provided a high-performance computing (HPC) system that could handle the massive workload. Table 1 of the complete paper shows the results of a comparison of the conventional workstation with the HPC system. Computationally Intensive Fault-Likelihood Attribute Generation and Fault-Extraction Process In complex geological settings, fault identification and extraction of fault planes has always been a challenging task using traditional seismic-interpretation techniques. Conventional discontinuity-based seismic attributes often face limitations in delineating complex fault patterns, especially in areas of strike/slip and compressional-tectonics regimes. To address these limitations, geoscientists often use sophisticated seismic attributes such as fault likelihood, which follows a sequential multiattribute work flow to generate a fault-imaging volume used later to extract fault planes directly. The key challenge associated with running a computationally intensive attribute with a traditional workstation is that the process is time-consuming and performance is highly compromised because of hardware limitations. The fault-likelihood process itself generates six different seismic volumes during the automatic computation process. The task becomes even more challenging when multiple scenarios are required with varying parameters to assess and finalize the outcomes of fault-imaging volumes and extraction of fault planes. The digital laboratory was used to run this computing-intensive fault-likelihood process on a high-end machine with 800 GB random access memory and 96 cores with improved efficiency. It took only 10 days to run this multiattribute work flow on a seismic volume after running multiple scenarios using different attribute parameters to reduce fault uncertainty and automatically extract fault planes.

Time to pay the piper: Fossil fuel companies’ reparations for climate damages

Time to pay the piper: Fossil fuel companies’ reparations for climate damages

China's oil and gas demand forecast and pipeline network layout optimization analysis

In order to accelerate the speed of pipeline network construction and expand the scale of oil and gas pipeline network, we need to forecast the total oil and gas demand and regional demand structure, so as to better serve the future construction of national oil and gas network. In this paper, the LEAP model is used to forecast the total oil and gas demand consumption and its regional distribution in 2050. The results show that in the low-carbon scenario, China's oil and gas will decrease in 2035, but still maintain a certain proportion. There are great differences in oil and gas demand among provinces. In the future, the layout of oil and gas pipeline network should consider the changes of demand structure and spatial layout, and comprehensively consider the transportation distance, transportation cost, transaction price and other factors of oil and gas pipeline network, so as to scientifically layout oil and gas transportation pipeline and optimize the flow of resources.

The energy transition of the Chinese national oil companies towards renewables: An opportunity or a bottleneck?

Renewable energy is the fastest growing energy source. China, the world’s biggest energy consumer, is also the largest investor in renewable energy. Although it is expected that oil will continue to dominate the energy mix in China and in the world by 2040, a transition towards a renewable model in the energy sector is unfolding, which has also been acknowledged by international oil companies (IOCs). Then, how the Chinese national oil companies (NOCs) approach such a transition becomes important – to what extent their investment transform and what are the pressures and influences behind the transformation. This paper investigates the positions and decisions taken by the Chinese NOCs, through comparing the similarities and differences between these NOCs and IOCs. A neo-Gramscian theoretical framework that considers environmental governance through dynamics at material, organisational, and discursive levels is used to examine the Chinese NOCs’ energy transition. We find that the Chinese NOCs’ energy transition is determined by: materially, economic profits; organisationally, the administrative environmental governance structure that copes with the market competition against IOCs and other state-owned companies; and discursively, the political concept of ecological civilisation.

ECONOMIC COOPERATION BETWEEN IRAQ AND ITALY IN THE OIL FIELD (1963-1972 AD)

This research came to shed light on the economic cooperation between Iraq and Italy in the oil field during the year 1963-1979 and its impact on the progress of the development of relations between the two countries, since oil is an important factor in drawing up the bilateral relations between the two countries, as the oil dealings between the two countries at its inception during that period is not limited to being a factor Despite the fact that Italy had only a few stakes in some of Iraq's oil wells due to the global monopolistic companies' control over Iraq's oil, and after the establishment of the Iraqi National Oil Company and its control over Iraq's oil, Italy seriously sought to obtain oil concessions in Iraq through its most prominent company represented by Eni. But the difficulties it faced from the monopolistic companies and the Iraqi National Oil Company's refusal of the offer prevented that, but after that it wanted to stay away from investing in Iraq, but the circumstances that Italy went through made it return to search for cooperation with Iraq in the oil field, but not to obtain a concession only this time, but Purchasing crude oil in return for providing services and industrial cooperation to the Iraqi side. Italy had a positive attitude towards the nationalization of Iraqi oil in 1972.

Saudi Arabia Case Study Illustrates Road to Zero Routine Gas Flaring

_ This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper IPTC 21182, “The Road to Zero Routine Gas Flaring: A Case Study From Saudi Arabia,” by Majed Alsuwailem, KAPSARC. The paper has not been peer reviewed. Copyright 2021 International Petroleum Technology Conference. Reproduced by permission. _ The complete paper discusses Saudi Arabia’s progress in gas flaring, the measures the government has taken, and how operators have adapted. It also identifies many lessons learned and technological solutions that could be scaled up on a national or a corporate level to reduce gas flaring to achieve zero routine flaring targets, especially in cases where the state owns hydrocarbon assets and leases them to private operators. History of Gas Flaring in Saudi Arabia Following the discovery in 1948 of Ghawar, Saudi Arabia’s largest oil field, oil production in the country increased and more associated gas was produced and flared. The national oil company, Saudi Aramco, had no interest in capturing gas produced from its oil operations. No local or regional market for it existed, and exporting the gas would have required substantial infrastructure investments. This coincided with periods of low crude oil prices that made gas projects uneconomical. However, as the 1960s and ’70s passed, gas came to be increasingly regarded as an essential part of a broader attempt to diversify the Saudi economy. This, in return, allowed the creation of jobs in new frontiers, including the refining and petrochemical industries. In the early 1970s, the Saudi Ministry of Petroleum and Minerals contracted the Texas Eastern Corporation to conduct a technical and economic feasibility study. It evaluated the benefits of establishing a massive refining and petrochemical industry in the city of Jubail on the Arabian Gulf and Yanbu on the Red Sea, with gas as an important feedstock. The study required major capital expenditures on midstream oil operations. Saudi Aramco, on the other hand, proposed exploiting associated gas to generate electricity. Because the price of oil did not exceed $3/bbl before the 1970s, the Saudi government opted for the first option. Saudi Aramco, however, only foresaw an opportunity in this development if the government contributed major capital to the midstream, resulting in a positive outcome for both the stakeholders and the operator, which turned out to be the case. Master Gas System (MGS) The government gave Saudi Aramco a contract to establish the $12 billion MGS to capture, process, and use gas as fuel and feedstock for the petrochemical plants. Most of this project was paid for by the government. By the fall of 1982, the key components of the MGS (gas-gathering and -processing facilities and pipelines) were fully operational. The MGS saved 4.2 billion scf of gas from being flared, which prevented 80 million tonnes of carbon dioxide from being emitted into the atmosphere annually. Over time, the MGS has been expanded as more oil and nonassociated gas fields have been placed onstream and as demand has risen for dry gas in the power sector. By 2018, the MGS had gathered almost 3.5 trillion ft3/yr and is one of the world’s largest single hydrocarbon networks. It includes 4,000 km of pipelines, 50 gas/oil separation plants (GOSPs), seven gas plants, and two natural gas/liquid units.

Pore Structure and Its Controls of Shale in the Qingshankou Formation, Sanzhao Sag, Songliao Basin

The exploration and development of Gulong shale oil in the Songliao Basin has achieved a major breakthrough, with the result that a national shale oil demonstration area is being built. The shale in the Sanzhao Sag is abundant in organic matter and is an important replacement area. For this reason, it has recently become a focus for research and exploration. Compared with the Gulong Sag, the Qingshankou Formation in the Sanzhao Sag is relatively immature, and comparatively little is known about its pore structure. For this study, well ZY1, a key well in the Sanzhao Sag, was selected as the research object. Thin section observation, high-resolution field emission scanning electron microscopy, Modular Automated Processing Systemimaging, X-ray diffraction of whole rock and clay, TOC pyrolysis, and Low-pressure N2 adsorption were used to investigate the pore structure in the sag to determine the factors influencing pore development. The principal understandings are as follows: (1) The Qingshankou Formation in the Sanzhao Sag is predominantly clay shale, with a high content of clay minerals (32.8 to 70%) and TOC contents of 0.7 to 11%. These values indicate good hydrocarbon generation potential. (2) Interparticle pores, intraparticle pores, and organic matter pores are developed. Intergranular pores are the main type, mostly observed between granular minerals or between granular minerals and clays. Intraparticle pores are observed in pyrite mass and dissolved unstable minerals. Organic matter pores (OMP) occur in primary organic matter and migrate into solid bitumen. (3) The shale pores in the Sanzhao Sag are mainly H3-type slit pores, with specific surface areas of 5.4~22.9 m2/g and pore volumes of 0.03~0.07 cm3/g. Mesopores make the largest contribution to pore volume and specific surface area. Scanning electron microscope (MAPS) imaging shows that the pore size distribution of shale is mainly 20~30 nm and 100~200 nm and that large pores, especially pores of 100~200 nm and 1~2 μm, make the largest contribution to the facies. (4) The pore structure in the Sanzhao Sag is affected by mineral composition, abundance of organic matter, thermal evolution degree, and diagenesis. Organic-inorganic interactions influence and determine the pore structure characteristics of the Qingshankou Formation shale. This paper is intended to provide scientific guidance and technical support for evaluating the effectiveness of shale oil reservoirs and selecting sweet spots in the Sanzhao Sag.