Petroleum Operations Research Articles

Intelligent agents for alarm management in petroleum ambient

Alarm management is a fast-growing and important aspect in the petroleum operation domain. Alarm devices have become very cheap leading petroleum equipment manufacturers to overuse them transferring safety responsibility to operators. Not rarely, accident reports cite poor operators understanding of the actual plant status due to too many active alarms. Typical alarms for a process plant could average over fourteen thousand per day so, there is mandatory to have a filtering process to distinguish expected from non-expected behavior during emergency scenarios. Ambient Intelligence contributes by enriching the petroleum plant environment with technology (mainly sensors and devices interconnected through a network) and built a system to help plant operators to make decisions based on real-time information gathered and historical data accumulated. Ambient Intelligence puts together all these resources to provide flexible and intelligent services to users acting in their environment. Inspired by the distributed and encapsulated aspect of the process plant artifact physical model, we proposed a multi-agent-based alarm management system to synthesize the process plant situation during emergency situations and assisting operators to make sense of alarm avalanche scenarios.

Methane Emissions From Natural-Gas Systems: A Comparative Assessment for Select Industry Segments

Summary The recent rapid expansion of natural-gas developments and usage worldwide are bringing into focus the need to improve understanding and characterization of greenhouse-gas (GHG) emission sources, including methane (CH4), associated with petroleum and natural-gas systems. New production technologies and practices, including those involving hydraulic fracturing, necessitate a thorough review of existing quantification methods for fugitive CH4 emissions from venting, flaring, and equipment leaks associated with petroleum and natural-gas systems and operations. In the past few years, widely divergent estimates have emerged regarding CH4 emissions from the US natural-gas-industry sector. Some discrepancies noted by industry surveys have led to a thorough review of newly available information and are leading to the improvement of estimation methods and emission factors associated with activities that comprise natural-gas systems. This has manifested itself in the engineering estimations that are used for compiling the national GHG Emissions Inventory and in the methods used by companies for reporting under the mandatory national GHG Reporting Program. Both the inventory and the reporting program are programs of the US Environmental Protection Agency (EPA). This paper presents results of a comparative analysis of GHG-emissions data, including CH4, for key industry segments such as on-shore natural-gas production and natural-gas processing and their contribution to the Petroleum and Natural Gas Systems sector. The data analyzed will contrast the “top-down” assessments used in developing the GHG Emissions Inventory with the “bottom-up” estimation of actual emissions as reported under Subpart W of the GHG Reporting Program. The analysis will provide a comparison of the estimation methods and evaluation of the contribution of key sources with overall CH4 emissions. The ultimate goal of this effort is to incorporate the new information that is becoming available into consistent methods that can be used both for national GHG inventory development and for corporate reporting. Harmonization of these methods is expected to contribute to informing the public debate on natural-gas use and its role in mitigating overall GHG emissions.

The Effect of Temperature and Pressure on the Reversibility of Asphaltene Precipitation

A lot of hindrances are seen in petroleum operation, production, and transportation as a results of factors that related to asphaltene precipitation. It has great importance to investigate the reversibility of asphaltene precipitation under changes of effective factors on thermodynamic conditions such as pressure, temperature, and composition. In the present work the reversibility of asphaltene precipitation under changes of pressure and temperature was investigated for two kind of Iranian heavy oil. The stability test shows these samples are located at unstable region in aspect of asphaltene precipitation. The experimental procedure includes two parts, (a) decreasing pressure from initial reservoir pressure to near saturation pressure and surveying asphaltene content hysteresis with redissolution process at reservoir temperature, and (b) investigation of precipitated asphaltene in both precipitation and redissolution processes at different temperature and reservoir pressure. At each step IP143 standard test was used to measure precipitated asphaltene. It was concluded that above bubble point pressure, asphaltene precipitation is nearly reversible with respect to pressure for both samples and it was partially reversible with respect to the temperature for sample A, and accordingly pressurizing is acceptable method for solving the problem in both heavy asphaltenic crude oil samples and increasing temperature is acceptable method for solving asphaltene problem in crude oil sample A. Also density measurement of flashed oil confirmed that there is a little hysteresis in asphaltene content during redissolution and precipitation processes.

Business-process management in high-turbulence environments: the case of the offshore service vessel industry

This article focuses on business-process management in turbulent business environments, more specifically, the management of offshore service vessel (OSV) companies in environments of high volatility and complexity. Such logistics service providers must deal with various heterogeneous elements, and may face extreme situations with uncertain outcomes. This can have implications for the business processes and the business model implemented within the firm. The study reported here employed an explorative qualitative approach with in-depth case studies of firms in the OSV industry in the North Sea and the High Arctic. The results indicate that, in order to tackle the logistics challenges of turbulent environments, a firm may have to introduce entrepreneurial business models with strong links to external actors. To meet the needs of various stakeholders, three business processes are crucial for handling increased turbulence: (1) resource re-configuration adding basic resources as well as dynamic capabilities; (2) knowledge base and capacity, increasing cooperative relations with other firms and (3) added stakeholder- and knowledge-providing business processes. Results from in-depth studies in two different environmental contexts within offshore petroleum operations underscore the importance of adapting business-process management to task-environment complexity and uncertainty.

Emissions of organic carbon and methane from petroleum and dairy operations in California's San Joaquin Valley

Abstract. Petroleum and dairy operations are prominent sources of gas-phase organic compounds in California's San Joaquin Valley. It is essential to understand the emissions and air quality impacts of these relatively understudied sources, especially for oil/gas operations in light of increasing US production. Ground site measurements in Bakersfield and regional aircraft measurements of reactive gas-phase organic compounds and methane were part of the CalNex (California Research at the Nexus of Air Quality and Climate Change) project to determine the sources contributing to regional gas-phase organic carbon emissions. Using a combination of near-source and downwind data, we assess the composition and magnitude of emissions, and provide average source profiles. To examine the spatial distribution of emissions in the San Joaquin Valley, we developed a statistical modeling method using ground-based data and the FLEXPART-WRF transport and meteorological model. We present evidence for large sources of paraffinic hydrocarbons from petroleum operations and oxygenated compounds from dairy (and other cattle) operations. In addition to the small straight-chain alkanes typically associated with petroleum operations, we observed a wide range of branched and cyclic alkanes, most of which have limited previous in situ measurements or characterization in petroleum operation emissions. Observed dairy emissions were dominated by ethanol, methanol, acetic acid, and methane. Dairy operations were responsible for the vast majority of methane emissions in the San Joaquin Valley; observations of methane were well correlated with non-vehicular ethanol, and multiple assessments of the spatial distribution of emissions in the San Joaquin Valley highlight the dominance of dairy operations for methane emissions. The petroleum operations source profile was developed using the composition of non-methane hydrocarbons in unrefined natural gas associated with crude oil. The observed source profile is consistent with fugitive emissions of condensate during storage or processing of associated gas following extraction and methane separation. Aircraft observations of concentration hotspots near oil wells and dairies are consistent with the statistical source footprint determined via our FLEXPART-WRF-based modeling method and ground-based data. We quantitatively compared our observations at Bakersfield to the California Air Resources Board emission inventory and find consistency for relative emission rates of reactive organic gases between the aforementioned sources and motor vehicles in the region. We estimate that petroleum and dairy operations each comprised 22% of anthropogenic non-methane organic carbon at Bakersfield and were each responsible for 8–13% of potential precursors to ozone. Yet, their direct impacts as potential secondary organic aerosol (SOA) precursors were estimated to be minor for the source profiles observed in the San Joaquin Valley.

Risk Assessment and Emergency Response of Oil Spill for Offshore Oil Activity

With the greatly development in offshore gas and oil activity in China, the potential risk of oil spill attract more public attentions. In order to effectively limit the spilling incidence and bring it under control, it is necessary to establish a risk assessment model for offshore petroleum activity and prepare the oil spill response resource in an effective way. In this paper, a quantified risk assessment model, including the spill probability and consequence assessment, was developed using fuzzy comprehensive method. The spill probability assessment was established with view of the operative manual and statistic leakage/damage data of different kinds of offshore petroleum facilities and operation; the consequence assessment was proposed to several factors including the spilling volume, property of spilled oil, spilling location and the elements of spilling detection and controlling capability of operator. Based on the result from risk assessment, we can identify the comprehensive spill risk level (low, ALARP, high) and make a decision whether the response resource allocated to the site could be enough. The multiply oil spill response devices and facilities, especially the oil recovery vessel, were largely used in China and will be expand in future.

Knowledge exchange systems usage: the importance of content contribution and application in distributed environments

Purpose – For knowledge exchange systems to yield best organizational benefits, it is acknowledged that employees have to both contribute with and apply system content. This may be of particular importance in distributed environments due to limitations in alternative channels for knowledge exchange. This study investigates the effects of the gap between contribution and application on the degree of knowledge exchange within and between organizational borders and work locations. Design/methodology/approach – The study is based on survey data involving 2204 respondents from a large petroleum operator company and eight of its main contractors. Findings – An increase in the gap between contribution and application is accompanied with reduced levels of knowledge exchange between organizational borders and work locations, but has no effects on knowledge exchange between employees of the same organization working at the same location. This is explained by the availability of substitute channels for local knowledge exchange. Practical implications – Knowledge exchange systems research and practice have to focus on both knowledge contribution and knowledge application as fundamental processes, and should further consider organizational structure as an important factor. Originality/value – Most research on contribution and application of content in knowledge exchange systems focuses on knowledge exchange within company boundaries. This study systematically investigates the effects of the gap between contribution and application of system content at different levels of organizational distribution, and thus extends existing research by introducing organizational distribution as a conditioning variable for successful knowledge management.

Knowledge management and safety compliance in a high-risk distributed organizational system.

BackgroundIn a safety perspective, efficient knowledge management is important for learning purposes and thus to prevent errors from occurring repeatedly. The relationship between knowledge exchange among employees and safety behavior may be of particular importance in distributed organizational systems where similar high-risk activities take place at several locations. This study develops and tests hypotheses concerning the relationship between knowledge exchange systems usage, knowledge exchange in the organizational system, and safety compliance.MethodsThe operational context of the study is petroleum drilling and well operations involving distributed high-risk activities. The hypotheses are tested by use of survey data collected from a large petroleum operator company and eight of its main contractors.ResultsThe results show that safety compliance is influenced by use of knowledge exchange systems and degree of knowledge exchange in the organizational system, both within and between units. System usage is the most important predictor, and safety compliance seems to be more strongly related to knowledge exchange within units than knowledge exchange between units.ConclusionOverall, the study shows that knowledge management is central for safety behavior.

Upstream Petroleum Economic Analysis: Balancing Geologic Prospectivity with Progressive, Stable Fiscal Terms and Instruments

Academia - Practical ways to navigate the sea of petroleum fiscal systems worldwide. Fiscal regimes describe all legislative, taxation policy, contractual, and fiscal elements under which petroleum operations are conducted in petroleum provinces or nations. There are far more petroleum fiscal systems worldwide than petroleumproducing provinces. Kaiser and Pulsipher (2006) give some explanations for this phenomenon, including the fact that contracts originating under several different fiscal regimes may be in effect at any given point in time. Other reasons cited include adoption of more than one fiscal arrangement during a licensing round, changes in political and economic conditions as well as in prospectivity assumptions of firms seeking the right to explore and develop petroleum resources, and the host government’s motivation to maximize economic rent collections from its country’s endowed resources. Host Governments vs. Investors Usually, the primary objective of the host government in a petroleumproducing nation is to ensure maximum economic benefits for the country without necessarily seeking total control of all exploration and production (E&P) terms and conditions, investments, and/or production. Other objectives may, however, be pursued, including efficient resource development, access to technology, skilled national manpower, investment funding for local E&P activity, and sustainable economic growth (Iledare, 2008). On the other hand, investors tend to view host countries’ fiscal regimes critically on the basis of their financial objectives.

Value of Competency and Value of Competency Assessment

Summary What is the value of a competent engineer? How can we be sure that an engineer is actually qualified? Because the big crew change progresses and because regulators worldwide are beginning to require operators to assure the competency of people working in petroleum operations, these questions are becoming increasingly important. We present an approach to address these questions by looking at the value of competency and competency assurance with probabilistic models. Valuing competency improvement is a value-of-control (VOC) problem, common in such areas as project risk management and risk-based maintenance. Value-of-information (VOI) problems are similar. We demonstrate how to calculate VOC and VOI with decision trees and Monte Carlo simulation. We selected well design as the example application throughout. The value of a competency assessment is first demonstrated with a decision-tree VOI analysis. With input judgments that we believe are reasonable, the analysis shows that competency assessments are likely underused. A more detailed well life-cycle model uses Monte Carlo simulation for the stochastic (i.e., probabilistic) calculations. Here, we illustrate a model of training, a well-design process, and multiple review and execution stages during drilling, completion, and production operations. The model features a competency scale, and VOC is shown by valuing incremental competency improvements and an optional peer review. Another VOI example is competency assessment for a junior engineer. Similar simulation models can help management optimize decisions involving staffing, type and days of structured training, work-process design, and project-design review stages. In addition to reducing the chance and impact of defective engineering, assessments provide important feedback to the engineer as learner, tools for planning training and development, organizational learning, risk management, construction, and safe operations. We show that VOI and VOC analyses—long used for exploration decisions—can be applied throughout the information processes used in planning and managing processes.

A Status Evaluation Model of Human Errors Probability in Petroleum Operations

The accident happens sometimes in the oil industry and that the Human errors (HEs) are studied and used in the petroleum field is fewer. Then, the paper analyzes the early achievements and finds that most of the studies are aimed at the operation behavior but not the operator. So, using probability theory, the paper discusses the HE Causes and the relationship between human behavior and the accident, and it presents the error state evaluation model of organization and the evaluation model of the number of operators doing Error. According to the evaluation models, the management can get the risk status of accident of an organization.

A Study of Evaluation Model of Human Errors at Risk for the Petroleum Operation

Because the petroleum production is larger investment, higher risk, and the traditional risk evaluation tools usually gave an evaluated value only, which being not in accord with the actual, the paper introduces the ideas of Value at Risk into the Human Errors (HEs) quantification for the petroleum operation, and develops the the model of Human Errors at Risk (HEaR) to quantify the HEs. The model can in detail depict the actual risk statuses of production system under different risk conditions.

Harmful routines? Uncertainty in science and conflicting views on routine petroleum operations in Norway

Offshore petroleum activities are the focus of highly politicised debates globally. Typically, public debate is sparked by catastrophic events, such as the 2010 oil spill in the Gulf of Mexico, and decision-making processes fuelled by the assessment of ‘worst-case scenarios’. However, everyday ‘routine’ petroleum operations also impact the marine ecosystems and adjoining socio-economic sectors, but the extent and severity of the impacts are uncertain. This paper takes as its point of departure routine operations and their surrounding uncertainties. Particularly, it focuses on the debates of whether to extend routine petroleum operations in vulnerable and valuable parts of Norway, such as the Lofoten area and the Sula Ridge. These conflicts draw on important and for some, epistemological uncertainties that surround the impacts of routine operations. The paper argues that it is necessary to first highlight these uncertainties, rather than marginalise them, and second, recognise that uncertainties are not simply a scientific challenge, but can be a powerful political tool. This paper unpacks and explores uncertainties associated with three phases of routine operations, that are used to steer political actions: (i) the impacts of seismic surveys on fish and marine mammals; (ii) the impacts of drilling mud and drill cuttings on benthic communities such as deep-sea coral reefs; and (iii) the impacts of produced water on the marine environment. The paper discusses the importance of transparency in addressing these uncertainties, and emphasises the need to implement the precautionary principle in a more participatory way. It thus proposes participatory exercises in order to allow the recognition of the epistemological nature of uncertainties.

Identification of the Human Factors Contributing to Maintenance Failures in a Petroleum Operation

This research aimed to identify the most frequently occurring human factors contributing to maintenance-related failures within a petroleum industry organization. Commonality between failures will assist in understanding reliability in maintenance processes, thereby preventing accidents in high-hazard domains. Methods exist for understanding the human factors contributing to accidents. Their application in a maintenance context mainly has been advanced in aviation and nuclear power. Maintenance in the petroleum industry provides a different context for investigating the role that human factors play in influencing outcomes. It is therefore worth investigating the contributing human factors to improve our understanding of both human factors in reliability and the factors specific to this domain. Detailed analyses were conducted of maintenance-related failures (N = 38) in a petroleum company using structured interviews with maintenance technicians. The interview structure was based on the Human Factor Investigation Tool (HFIT), which in turn was based on Rasmussen's model of human malfunction. A mean of 9.5 factors per incident was identified across the cases investigated.The three most frequent human factors contributing to the maintenance failures were found to be assumption (79% of cases), design and maintenance (71%), and communication (66%). HFIT proved to be a useful instrument for identifying the pattern of human factors that recurred most frequently in maintenance-related failures. The high frequency of failures attributed to assumptions and communication demonstrated the importance of problem-solving abilities and organizational communication in a domain where maintenance personnel have a high degree of autonomy and a wide geographical distribution.

Using data envelopment analysis in comparing the environmental performance and technical efficiency of selected companies in their global petroleum operations

This study examined the environmental performance and economic efficiency of global operations of selected companies in the petroleum industry by analyzing the technical and technical efficiency. The selected companies were chosen from the 2008 GLOBAL 500 in the petroleum industry based on their 3-year average value of assets. Data of environmental pollutant emissions were obtained from the companies’ sustainability reports. Environmental indices were used to conduct the eco-efficiency analysis using the data envelopment analysis (DEA) to obtain the overall eco-efficiency of the company. Economic data were obtained from the 2008 GLOBAL 500. Another DEA was performed to obtain the overall technical efficiency. Eco-efficiency scores and economic scores were analyzed using the Pearson’s coefficient of correlation and the Spearman rank correlation coefficient Performance is gauged through the eco-efficiency indicator which is interpreted by environmentalists, economists and scientist to assess the reduction of adverse impacts on the environment. Results show a weak positive relationship between eco-efficiency and technical efficiency. The eco-efficiency indicator is a useful management tool in that it provides a means for managers and consumers alike to conduct environmental housekeeping.

A Critical Review of Natural Gas Flares-Induced Secondary Air Pollutants

Application of material balance analysis (in one of our previous studies) to natural gas flare in the upstream petroleum operations confirmed the emission of primary air pollutants in form of CO, CO2, NO, and NO2 from “sweet” natural gas while “sour” gas emits SO2 in addition; incomplete combustion may be an impetus for the release of volatile organic compounds (VOCs) into the atmosphere from this same source. In this article, the significance of these gaseous emissions in the formation of secondary air pollutants in the atmosphere is reviewed for the purpose of air pollution control strategy. The goal is to describe the formation mechanism, to determine the influencing factors in formation along with environmental impacts and to identify the required technological and policy control approach for an improved environmental protection.

Secondary organic aerosol formation from fossil fuel sources contribute majority of summertime organic mass at Bakersfield

Secondary organic aerosols (SOA), known to form in the atmosphere from oxidation of volatile organic compounds (VOCs) emitted by anthropogenic and biogenic sources, are a poorly understood but substantial component of atmospheric particles. In this study, we examined the chemical and physical properties of SOA at Bakersfield, California, a site influenced by anthropogenic and terrestrial biogenic emissions. Factor analysis was applied to the infrared and mass spectra of fine particles to identify sources and atmospheric processing that contributed to the organic mass (OM). We found that OM accounted for 56% of submicron particle mass, with SOA components contributing 80% to 90% of OM from 15 May to 29 June 2010. SOA formed from alkane and aromatic compounds, the two major classes of vehicle‐emitted hydrocarbons, accounted for 65% OM (72% SOA). The alkane and aromatic SOA components were associated with 200 nm to 500 nm accumulation mode particles, likely from condensation of daytime photochemical products of VOCs. In contrast, biogenic SOA likely formed from condensation of secondary organic vapors, produced from NO3radical oxidation reactions during nighttime hours, on 400 nm to 700 nm sized primary particles, and accounted for less than 10% OM. Local petroleum operation emissions contributed 13% to the OM, and the moderate O/C (0.2) of this factor suggested it was largely of secondary origin. Approximately 10% of organic aerosols in submicron particles were identified as either vegetative detritus (10%) or cooking activities (7%), from Fourier transform infrared spectroscopic and aerosol mass spectrometry measurements, respectively. While the mass spectra of several linearly independent SOA components were nearly identical and external source markers were needed to separate them, each component had distinct infrared spectrum, likely associated with the source‐specific VOCs from which they formed.

Issues of Taxation in the Oil and Gas Sector in Selected Countries: Lessons for Ghana

Issues of Taxation in the Oil and Gas Sector in Selected Countries: Lessons for Ghana undertakes a review of petroleum taxation in selected countries around the world and seeks to fashion a way for Ghana’s infantile petroleum industry. In other words, the study seeks to facilitate a smooth tax regime and policy for Ghana. The study is based on literature arising from desk research as well as through telephone interviews. Petroleum taxation regimes of the countries under study portend to mitigate the current inconsistencies and resulting contentions from tax payers in Ghana. Key words: Oil and gas; Petroleum; Crude oil; Hydrocarbon; Upstream petroleum operations; Taxation; Tax legislation; Royalty; Income tax

Interests in Joint Operating Agreement: Can You Eat Your Cake and Have it? The Nigerian Case Study

Just as with most legal principles, the dominant influence of Roman law and English Common Law are almost inevitable. The traditional disparity between the capabilities of such concepts as ‘assignment’ and ‘novation’ with respect to transferring both sides of a legal relationship - burden and benefit - did not abate with the intricate contract matrix that came to greet the discovery of oil. Stakeholders in various jurisdictions have discovered, to their amazement, that the risks inherent in the oil business do not deter a hard line approach by the courts in holding as immaterial their ideals for engaging in a corporative petroleum operation by way of a Joint Operating Agreement (JOA), hence the aching problem: how do I cease from being continually liable for post-assignment obligations even years after I have alienated my interests? By adopting an analytical and comparative methodology, we have examined the impetus with which the concepts operate under common law with particular emphasis on post-assignment liabilities and thereafter showed what the current legal situation in Nigeria under the relevant JOA is and how it has rendered ineffective the common law dichotomy.

On the Risk Management and Risk Governance of Petroleum Operations in the Barents Sea Area

In this article, we discuss issues of risk management and risk governance with respect to petroleum operations in the Barents Sea area. We will focus on the decision problems related to whether or not to open the Barents Sea for petroleum activities in special vulnerable areas. We will explore to what extent the International Risk Governance Council risk governance framework provides valuable insights for and assistance to the decisionmaker and other stakeholders (including the industry and NGOs). The study covers issues related to risk assessment and appraisal, risk acceptance and tolerability, the use of the precautionary principle, risk perception, stakeholder involvement, risk communication, and risk management. The overall aim of the article is to point to areas where the risk governance could have been and can be improved for these and similar decision problems.