Norwegian Gas Research Articles

Methane anomaly in soil gas above an abandoned oil & gas exploration borehole in NE Czechia

In the 1950s–1960s, 71 coal and gas exploration wells were drilled in the area of interest in the Western Carpathian Flysch Belt (WCFB) in the NE Czech Republic. Some wells were abandoned while others were used for gas production and storage in the Třanovice underground gas storage (UGS). A monitoring campaign was carried out in place of an earlier abandoned exploration well Žu-108 aiming at proving or ruling out a geochemical relationship of the soil gas and the stored gas in the UGS. The measurements were carried out each month from June 2018 to October 2019 and included amount of methane (CH4), total petroleum gases (CH4 to C4H10), carbon dioxide (CO2) and oxygen (O2) in soil gas in a grid of up to 41 probes. The results show a methane gas peak occurrence with 10 m diameter around the well-top with maximum methane content of 57%vol, while the natural background value of methane content outside the plume is < 500 ppm. The position of the methane peak is associated with significant O2 drop down to 0.25%vol and is surrounded by up to 8.34%vol CO2 halo produced most probably by methanotrophic archea-bacteria. The natural background CO2 values are ca. 0.80%vol. CH4 flux to the atmosphere from the topsoil directly above the well-top of Žu-108 well was measured using the accumulation chamber and range from 2126 to 26 197 g d−1 m−2. The flux increased during drops in atmospheric pressure and ground water level in situ. In contrast, low methane flux was registered after strong rainfalls and when the soil was covered by ice and snow which acted as seal. Based on chemical composition and isotopic signature of methane, the gas is of oil-associated type and methane is thermogenic, similar to that of the original (i.e. pre-UGS) Žukov gas field as well as other small accumulations in the WCFB on the territory of the Czech Republic. It statistically differs from imported mixture of Siberian and Norwegian gas stored in the Třanovice UGS. Based on it, the possible natural gas leakage from the UGS to the Žu-108 is in this case ruled out.

Norwegian gas: an American weapon?—The way Norwegian gas resources became part of US strategy to squeeze out soviet gas from the European market between 1981 and 1983

Norwegian gas: an American weapon?—The way Norwegian gas resources became part of US strategy to squeeze out soviet gas from the European market between 1981 and 1983

Accurate Measurements of Seabed Subsidence Above Norwegian Gas Fields

Summary Field-wide seafloor subsidence has been monitored at ten hydrocarbon fields offshore Norway. Subsidence provides lateral information on compressibility and pressure depletion in the reservoirs. This has been used to calibrate geomechanical and reservoir flow models, to map reservoir and aquifer compaction and identify poorly drained compartments. Water pressure measurements have given survey-internal precision of 2–5 mm. Tidal variations in the seafloor pressure have been carefully measured and corrected, which requires a spatial grid of reference sensors. A segment of the Midgard gas field showed significantly less subsidence than expected. This was interpreted as being caused by less depletion. A new well was drilled based on the subsidence data, a reinterpretation of the structural model, and a revised flow model. Almost virgin pressure was found. The well has since been the best producer on the field and paid back the cost of data acquisition by at least two orders of magnitude.

E&amp;P Notes (January 2022)

E&amp;P Notes (January 2022)

The Costs and Benefits of Price Leadership - Evidence from Retail Gasoline

This paper studies the costs and benefits of price leadership in a retail gasoline market with asymmetric price cycles. A unique dataset with high frequency price and volume data for almost all Norwegian gas stations coupled with a particular pricing pattern allow me to provide the first concrete evidence on the costs and benefits of leading price jumps. The main result is that the leader’s volume loss ensuing from being alone with a high price until the other firms match the price increase, is small compared to the large margin increases and profit gains resulting from the price jumps. Furthermore, I find that the leader is not worse off than the non-leading firms.

Diversifying away from Russian Gas: The Сase of Poland

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Comparative Assessment of Life Cycle GHG Emissions from European Natural Gas Supply Chains

Recent studies reporting on the GHG emissions from NG chains where gas is consumed in Europe provide wide ranging estimates. A detailed life cycle GHG emissions estimation of two Norwegian natural gas production and European consumption chains has been carried out and validated with detailed operational data. CO2 and CH4 emissions were estimated at unit process level using engineering calculations, material balance, and high-resolution emissions factors resulting in GHG emissions footprints between 2.26-7.05 gCO2 eq/MJ NG delivered to European markets. The estimated CH4 emissions for the chains as a fraction of production was 0.01-0.04%. Important differences in GHG footprint are observed annually and also between neighbouring fields. Nevertheless, results indicate that the GHG footprint of both the Norwegian LNG and pipeline gas imported to Europe is well below recently reported EU averages.

Energy Supply and Decarbonisation Beyond Brexit: Politics and Policy

Energy Supply and Decarbonisation Beyond Brexit: Politics and Policy

Formation of Reputation in Business Markets

ABSTRACTPurpose: This study adopts a relational perspective on reputation. We investigate how relationship characteristics impact a customer’s judgment of supplier reputation. We include characteristics at both the interfirm and interpersonal levels, and we additionally link these characteristics to interfirm trust in order to explore similarities and differences between reputation and interfirm trust.Methodology/approach: A survey was conducted among firms in the Norwegian offshore oil and gas industry. We assessed the measurement model and tested the hypotheses by applying LISREL.Findings: The results show that the customer’s dependence on the supplier, common knowledge, and interpersonal trust are positively related to reputation, while opportunism is negatively related to reputation. Reputation is positively linked to interfirm trust, and both reputation and interfirm trust impact the customer’s satisfaction with the supplier.Research implications: This study sheds light on the role of relational mechanisms in reputation formation. It suggests that reputation primarily consists of cognitive components, while interfirm trust consists of more affective components. Reputation is an important factor in developing interfirm trust.Practical implications: This study underscores the importance of a firm’s core relationships to customers for developing its reputation. Managers need to carefully develop their relationships to customers in such a way that these relationships are consistent with and confirm the reputation they want to build.Originality/value: The study supports the view that relational characteristics play important roles in the formation of reputation in business markets.

Norwegian Government incentives for SME companies in the local oil and gas sector: a case study

The purpose of this paper is to investigate the impact of important government incentives to promote innovation and entrepreneurship in the Norwegian oil and gas sector. Two case studies will be used to illustrate an optimised route towards these schemes in Norway. The impact of different incentives was investigated through case studies in the Norwegian oil and gas sector. The management and founders of each company was interviewed to identify the most important factors that influence and assist companies in their efforts towards increased R&D and innovation. Case studies are based on face-to-face interviews of the relevant companies. This paper identifies the relevance of Norwegian Government incentives. Findings are discussed, and concluding remarks are presented. The research highlights the most important incentives and explains why these incentives are relevant for the different companies.

The Main Principles of Adminisrative Licensing in Oil and Gas Sector of Norway

The present article is dedicated to the analysis of administrative licensing procedure in Norwegian oil and gas sector. That is one of the most important mechanisms of state regulation in this area. The paper explores a wide range of reasons for choosing precisely this model of interaction between oil and gas companies and the state. The main aspects of the present administrative licensing system are highlighted in the article. Particular attention is paid to pre-qualification of oil and gas companies, participating in licensing rounds, especially to different criteria for choosing oil and gas companies that will operate on Norwegian Continental Shelf. Further conditions of their cooperation are provided. Moreover, the article refers to the role and the functions of state bodies in Norway that control and govern the licensing process - the Ministry of Petroleum and Energy and the Petroleum Directorate - and describes different types of licenses that exist in oil and gas sector of Norway. In conclusion the article shows numerous advantages of using the administrative licensing system in oil and gas sector, its impact on the economy of Norway and the possibility of its application in the oil and gas sector of Russia.

Norwegian Oil and Gas Industry Project to Reduce Hydrocarbon Leaks

Summary The prevention of hydrocarbon (HC) leaks is of great importance because they are the most critical precursor events that may lead to major accidents, such as in the case of Piper Alpha. The number of HC leaks on offshore production installations on the Norwegian continental shelf (NCS) peaked just after the year 2000, with more than 40 leaks per year of an initial rate greater than 0.1 kg/s. The Norwegian Oil and Gas Association (Norwegian Oil and Gas) conducted a reduction project from 2003 to 2008, which resulted in only 10 HC leaks greater than 0.1 kg/s in 2007. The number of leaks increased in the years after 2007, and there were 15, on average, in the period 2008–2010, without any significant increase in the number of installations. Norwegian Oil and Gas started a new project early in 2011 to reduce the number of HC leaks yet further. The initiative will be completed at the end of 2013, but has already started to show promising results. A study undertaken as part of the project concluded that more than 50% of the leaks are associated with the failure of operational barriers during human intervention into the process systems. Human and organizational factors predominate with respect to circumstances and root causes. This paper presents the HC-leak-reduction project, the rationale behind it, and its main activities, which aim to reflect the operational challenges. The activities tie in closely with the results of the analysis of the leaks during the period 2008 through 2011. The single operational barrier that has failed most commonly is the verification of critical activities. The paper also discusses the risk-reduction principles in a barrier context, with an emphasis on operational barriers, as well as some of the challenges faced in the project.

Incentive Problem in Gas Transport Infrastructure Development on the Norwegian Continental Shelf

The objective of this paper is to propose an analytical structure to investigate the interaction between the tariff regulation and investment behavior in the Norwegian gas transport sector. A game theoretic approach is used to analyze the current tariff system, and consider its implications on the development of the transport network in the long run. A special position of the independent system operator as a common agent is discussed.

PRIVATIZATION OF RUSSIA’S ENERGY ASSETS IN THE INTERNATIONAL CONTEXT

The article deals with privatization in Russia’s energy sector with a special focus on a recent purchase of the private TNK-BP by the state-owned Rosneft. The author analyses the past, present and future privatization deals related to the Russian oil, gas and power generation industry as compared to accumulated international experience. For instance, the article displays the ways the Norwegian, Brazilian, French and British authorities privatized national strategic energy assets. The study presented in the article also aims to find out key advantages and disadvantages of state or private ownership in the Russian and global energy industry. For example, it sheds light on some considerable achievements of the Russian state-controlled companies in oil production amid a widespread belief that more than a decade-long growth in the Russian oil industry is due only to private firms that were created in the 1990s. Additionally, the state-controlled Norwegian oil and gas firm Statoil that shows strong operational and financial results on the Norwegian Continental Shelf and abroad is also in the spotlight of the current study. In line with the mentioned takeover of TNK-BP the author examines outcomes of the reorganization of RAO UES of Russia (the dismantled Russian electric power monopoly) that was seen as a massive privatization of the national power industry. Moreover, the study presents two groups of interests prevailing in the Russian government and energy business to give an outlook on the Russian energy industry.

World's Longest Electrically Heated Flowline Allows HP/HT Field Tieback to Existing Host

This article, written by Editorial Manager Adam Wilson, contains highlights of paper SPE 161572, ’HP/HT Field Development Tied Back to an Existing Host,’ by Trevor Crowe, Shell, and Jean-Paul Koninx, SPE, and Crispin Slater, A/S Norske Shell, prepared for the 2012 Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, 11-14 November. The paper has not been peer reviewed. The Linnorm gas/condensate field in the Norwegian Sea is technically challenging. The high-pressure/high-temperature (HP/HT) reservoir contains gas with CO2, H2S, and traces of mercury. Although the gas is relatively lean, the associated condensate has waxy properties. Although there are production facilities within 30 to 70 km, this discovery was initially seen as “stranded” gas because of the absence of an export route with available capacity. The wells and subsea concepts would push the limits of existing technology and require some world-first solutions for what will be the highest-temperature subsea field development on the Norwegian continental shelf with the world’s longest electrically heated flowline. Introduction The Linnorm gas discovery was made during the first half of 2005 in the Haltenbanken area offshore Norway. Well 6406/9-1 found a 180-m net column of lean gas in a gas-down-to situation in three Jurassic reservoir zones, all under HP/HT conditions (180°C, 800 bara). Two reservoir zones were production tested, both with good results. The field was further appraised by Well 6406/9-2 in 2007, successfully determining the gas/water contact in the key reservoirs. Several follow-up exploration wells all proved dry. This meant that the projected hub development for the Halten South area was no longer feasible. The likely way forward for Linnorm then was in the åsgard pipeline became available (currently estimated to occur later than 2020). The project was put on hold in 2007 because Linnorm was not expected to be developed before the 2020s. In summer 2008, an opportunity to accelerate the development of Linnorm was identified by making use of potential ullage in the newly commissioned onshore gas-processing plant at Nyhamna, built to process gas from the giant Shell-operated Ormen Lange field. This would require a new 200-km trunkline, the cost of which made the development commercially marginal. The solution was found by entering a new joint venture, the Norwegian Sea Gas Infrastructure project. The next challenge was to select an option for gas processing. Rather than an expensive new-build platform on Linnorm, the choice was made in mid-2011 for a subsea development with a tieback to the Shell-operated Draugen oil platform. In December 2011, the development concept was confirmed as a two-template, five-well subsea development, with a 55-km directly electrically heated (DEH) flowline tied back to Draugen, and 15 million m3/d of gas-processing capacity installed on Draugen (Fig. 1). Subsurface Uncertainties An extensive wireline formation-sampling program showed that the dis-covered gas is generally fairly dry, with high CO2 content, some H2S, and, on average, 50 Μg/std m3 of mercury. The condensate/gas ratio (CGR) varies per reservoir, with evidence for vertical compartmentalization in up to six different reservoir layers. Reservoir quality is variable, with some very good sands but also large sections with lower-quality tight sandstone. The high variability in reservoir quality across the reservoir leads to a number of specific challenges.

Project Risk Management

This study is about project risk management tools. The aim has been to identify which tools have the greatest potential for contribution to risk management processes in the Norwegian oil and gas industry, and which factors contribute to efficient risk management. Empirical data from the Norwegian industry have been gathered using a questionnaire. The results revealed strong relationships between project system complexity, average tool score and risk management contribution. Furthermore, the results of the analysis show that some of the previous recommendations of tools for project risk management may have been based on a restricted set of determinants. On the other hand, similarities are also found with previous research in terms of the highest ranked tools based on perceived contribution to the risk management performance. Compared to the previous findings, this study indicates that a new measure for project management performance is needed, and that the recommendation of tools based on the risk management contribution index may be flawed. Nevertheless, it is concluded that several of the recommended tools are of great value across industries.

System assurance of subsea petroleum production systems: a case study mapping factors influencing the sourcing strategy

Subsea systems are increasingly used in the production of offshore oil and gas. However, the life cycle management of such systems is not without risks as there are many factors that could result in increased costs, lower quality, delay in delivery, as well as increased health, safety or environmental risks. In addition to engineering related risks, there are substantial risks related to the sourcing of the systems, the execution of the offshore installation process, project execution and logistics, as well as the system operation and maintenance. Often many companies with various specialized expertize needs to be coordinated in the project and the cost may become huge if something goes wrong or of the technology does not perform. The sourcing strategy in subsea systems is based on the corporate vision, management and business philosophy of the operator and the regulatory authorities in the life cycle. The purpose of this paper is to identify and discuss various factors that will influence a sourcing strategy and the decision making process previous to establishing a contractual agreement in complex industrial projects. A case study is performed in the Norwegian oil and gas industry to identify, analyze and validate factors and attributes that impact the sourcing strategy of subsea production systems. The factors are ranked according to importance and as practiced in the industry.

Collaborative innovation: the decade that radically changed drilling performance

This article sheds light on key factors associated with innovations that are mainly based on experiential learning. The history of a company engaged in the offshore oil and gas industry exemplifies the points: Hitec started out as a small company with limited financial resources, but over a 10-year period, its innovations and improvements radically transformed offshore oil and gas drilling operations. An evolutionary methodological approach is balanced by theoretically informed analysis. A main finding is that customer–supplier interaction was crucial. Hitec's success, crowned by its eventual acquisition by American capital, can be attributed in part to the know-how and technology provided by one of its suppliers and partners during the early phase. However, it has also depended on a series of other factors: a flexible, motivated and creative organisation; targeting of the right know-how; being part of a cluster and thus enjoying easy access to important customers and suppliers as well as easy, informal flow of ideas and information; developers and entrepreneurs prepared to take risks; being in the right place at the right time; a good measure of luck; the underdeveloped state of American drilling control technology; Norwegian oil and gas policies supportive of domestic technological companies; and proximity to research labs which were conducting full-scale tests of drilling operations. An invention made by regional researchers can also be linked to Hitec's innovation of a drilling control system. The relevance of the article is its contribution to a better understanding of the complexity involved in the implementation of major practice-based innovations – a process which includes identifying and creating ideas; finding a market/customer and putting the ideas into practice.

Научно-технические соглашения в концессионной системе Норвегии в 70—90 годах ХХ века

This article is devoted to the formation and use of research and technology agreements in Norway, which had positive influence on the development of relations with foreign oil and gas companies during the period of formation of the Norwegian oil and gas industry. On the basis of archival documents, this article considers Norwegian experience of conclusion of research and technology agreements in order to provide transference of the latest technologies of exploration and oil and gas production to national oil and gas companies during the formation of the Norwegian oil and gas industry. The author comes to a conclusion that Norway has made significant scientific and technological progress through promoting active cooperation with foreign companies. Norway’s successful experience could be applied by the Russian state authorities in order to develop relations with foreign oil companies that could take part in offshore exploration in the Russian Barents Sea through concluding similar agreements between Russian state institutions and foreign oil and gas companies, which can give impetus to the development of the technological component of Russian oil and gas sector. Research and technology agreements have been used by Norwegians in order to diversify the economy and prevent excessive dependence on the energy sector, which is one of the major challenges faced by Russia.

Scalar politics and strategic consolidation: The Norwegian Gas Forum's quest for embedding Norwegian gas resources in domestic space

Underthun, A., Kasa, S. & Reitan, M. 2011. Scalar politics and strategic consolidation: The Norwegian Gas Forum's quest for embedding Norwegian gas resources in domestic space. Norsk Geografisk Tidsskrift–Norwegian Journal of Geography Vol. 65, 226–237. ISSN 0029-1951. The article discusses political initiatives and networks that aim to enhance the use of Norwegian natural gas resources in domestic space. Through perspectives on state rescaling and scalar politics, the authors explore the strategies of the Norwegian Gas Forum (NGF). This political network serves as an umbrella organization for regional political initiatives for local distribution and exploitation of natural gas along the Norwegian coast. It is argued that the initiatives demonstrate a scalar politics that counter tendencies of state rescaling in the realm of petroleum politics, where the state is less willing to invest and intervene in domestic natural gas utilization. The article examines the NGF's policy work, organizational composition, and ‘networks of association’ with other organizations. This is framed in the analysis as ‘scalar politics’ aiming to secure the member regions’ current and future dependence on domestic gas supplies. The important networks of association in relation to the Norwegian Confederation of Trade Unions (LO) and the Confederation of Norwegian Enterprise (NHO) implied compromise and consolidation among the regional members of NGF, but also empowered NGF on important policy issues.