Ultra-deep Water Oil Research Articles

The Role of National and International Oil Companies in the Petroleum Industry

This paper provides a review of the evolving role and characteristics of the oil and gas companies, which increasingly come in a variety of flavors. It also surveys the different types of oil and gas companies that include national oil companies (NOCs), international oil companies (IOCs), independents, and oilfield services companies (OFSCs). The continued rise of NOCs, accelerated by high oil prices, has seen the balance of control over most of the world’s hydrocarbon resources shift decisively in their favor. Their ability to access capital, human resources and technical services directly from oil field service companies, and to build in-house competencies, allows them to operate independently of Investor Owned Companies in most instances. The demand on NOCs continues to evolve with the global energy landscape to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country's natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. Having secured their home base, NOCs have emerged as joint venture partners with the IOCs and increasingly as their competitors, seeking international upstream and downstream acquisition and asset targets. The key question is whether this emerging landscape will undermine the sustainability of the IOC resource-ownership business model. Are the challenges of declining production in existing oil fields replacing oil and gas reserves in restricted access or higher cost areas, and the declining of the operating profit margins yet sufficient to reach a tipping point? NOCs and OFSCs have increasing power and influence in global oil markets. In parallel, IOCs’ significance and role in the oil markets has been in decline due to shrinking technical skills and expertise, reduced access to low cost reserves, and lower operating profit margins. As a result, IOCs have tended to focus on more challenging and less profitable domains, shale gas, unconventional oil, and deep-water operations. OFSCs have been offering NOCs more services and specialized operations with high technical experience at a lower cost than IOCs offer. As these trends continue, IOCs are likely to adopt a new business model that may require changes in collaborative efforts and cooperative relationships. Partnering with IOCs and OFSCs is a good step for NOCs that undertake a globalization strategy. In fact, this is a win-win strategy for all parties, as it will enable IOCs to gain more access to NOCs’ resources. Further, IOCs and OFSCs in partnership with NOCs should contribute to the socioeconomic development of the countries in which they operate.

National Oil Companies: Business Models, Challenges, and Emerging Trends

This paper provides an assessment and a review of the national oil companies' (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country's natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets. Asian state-owned companies of NOCs, most prominently from China and India, are at the forefront of strategic cross-border investments as their governments seek to prepare for long-term energy supply challenges. At the same time, increasing oil wealth brought about by rising oil prices has encouraged governments as diverse as Russia, Venezuela, Bolivia, and Ecuador to give greater political and economic leverage to their national energy champions. This is achieved in their local market through revisions to constitutional laws, contracts, tax and royalty structures. Also, the NOCs have begun to enter the international market, engaging in strategic investment activities and acquiring full or partial control of foreign companies in sectors of strategic interest for national development. Within the GCC region, there are a number of national oil companies that have capabilities to expand beyond serving their domestic markets. This process is, in part, being hindered by the inadequacy of corporate structures and the lack of information in the GCC region. Globally, it is being hindered by the rise of economic nationalism and the debate around economic sovereignty, security, and ownership of assets, and the perception in the west that NOCs should not seek to acquire international oil companies and assets. Undoubtedly, political considerations influence and impact the international investment policy of NOCs.The emerging trend driven by the rise of NOCs has shifted the balance of control over most of the world’s hydrocarbon resources. In the 1970s, the NOCs (super majors) controlled less than 10% of the world’s hydrocarbon resources, while in 2012 they control more than 90%. This shift has enabled NOCs to increase their ability to access capital, human resources and technical services directly, and to build in-house competencies. Further, NOCs have been increasing their ability to conduct outsourcing activities for many operations through the oilfield services companies (OFSCs), thus increasing their range of competence.

Displacement and Hydraulic Calculation of the SMD System in Ultra-deepwater Condition

During ultra-deepwater oil and gas well drilling operations, the problem of carrying cuttings in large diameter marine riser often happens. In order to solve the problem it is possible to apply another pump using for boost riser at the bottom of the sea. Based on the equivalent circulating density (ECD) calculation model and three constraint conditions in the ultra-deepwater drilling, the authors established the ECD calculation model and calculated the displacement in case of using another pump using for boost riser. Through an example the authors calculated and analyzed the needed displacement and the effect of different displacement of the pump using for boost riser on the ECD. According to analysis, the displacement of the pump in the drill ship plays the most important part in the ECD, and the three constraint conditions play a great role in the determination of the displacement.

National oil companies: business models, challenges, and emerging trends

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets

Ultra-Deepwater Gulf of Mexico Oil and Gas: Energy Return on Financial Investment and a Preliminary Assessment of Energy Return on Energy Investment

The purpose of this paper is to calculate the energy return on financial investment (EROFI) of oil and gas production in the ultra-deepwater Gulf of Mexico (GoM) in 2009 and for the estimated oil reserves of the Macondo Prospect (Mississippi Canyon Block 252). We also calculated a preliminary Energy Return on Investment (EROI) based on published energy intensity ratios including a sensitivity analysis using a range of energy intensity ratios (7 MJ/$, 12 MJ/$, and 18 MJ/$). The EROFI for ultra-deepwater oil and gas at the well-head, ranged from 0.019 to 0.022 barrels (BOE), or roughly 0.85 gallons, per dollar. Our estimates of EROI for 2009 ultra-deepwater oil and natural gas at the well-head ranged from 7–22:1. The independently-derived EROFI of the Macondo Prospect oil reserves ranged from 0.012 to 0.0071 barrels per dollar (i.e., $84 to $140 to produce a barrel) and EROI ranged from 4–16:1, related to the energy intensity ratio used to quantify costs. We believe that the lower end of these EROI ranges (i.e., 4 to 7:1) is more accurate since these values were derived using energy intensities averaged across the entire domestic oil and gas industry. Time series of the financial and preliminary EROI estimates found in this study suggest that the extraction costs of ultra-deepwater energy reserves in the GoM come at increasing energetic and economic cost to society.

Effect of slowly varying drift forces on the motion characteristics of truss spar platforms

Spar platform has been regarded as a competitive floating structure for deep and ultra deep water oil and gas production. In this paper, an efficient methodology has been developed to determine the slow motion responses of slender floating offshore structures due to wave forces. Based on this methodology, a MATLAB program named ‘TRSPAR’ was developed to predict the dynamic responses in time domain and it was used in this study to obtain the numerical results of a typical truss spar platform connected to sea bed using nine taut mooring lines. The difference frequency forces were calculated using the principles of the extension of Morison equation for an inclined cylinder and the wave kinematics were predicted using hyperbolic extrapolation. Mooring lines were modelled as nonlinear springs and their stiffness was obtained by conducting the static offset simulation. Because of the lack of detailed calculations in literature, most of the equations used were derived and presented in this paper. The effects of the different sources of the second order difference frequency forces were compared for inertia and drag forces in terms of response spectra. To validate the TRSPAR code, its results were compared to results of a typical truss spar model test.

Conceptual Design of Monocolumn Production and Storage With Dry Tree Capability

A new concept and a preliminary study for a monocolumn floating unit are introduced, aimed at exploring and producing oil in ultradeep waters. This platform, which combines two relevant features—great oil storage capacity and dry tree production capability—comprises two bodies with relatively independent heave motions between them. A parametric model is used to define the main design characteristics of the floating units. A set of design alternatives is generated using this procedure. These solutions are evaluated in terms of stability requirements and dynamic response. A mathematical model is developed to estimate the first order heave and pitch motions of the platform. Experimental tests are carried out in order to calibrate this model. The response of each body alone is estimated numerically using the WAMIT® code. This paper also includes a preliminary study on the platform mooring system and appendages. The study of the heave plates presents the gain, in terms of decreasing the motions, achieved by the introduction of the appropriate appendages to the platform.

Filling the gap: integrating nodes and streamer data for geophysical monitoring

E. Ceragioli, A. Kabbej, and A. Gonzalez Carballo of Total, and D. Marin of CGG, discuss how sparse distribution of seabed node receivers can complement conventional marine seismic streamer technology in the surveying of sensitive or obstructed targets with an example from an ultra deep water oil and gas field project.

Simulation of Transient Heat Transfer of Sandwich Pipes With Active Electrical Heating

This paper presents an analysis of transient heat transfer in sandwich pipelines with active electrical heating. The mathematical models governing the heat conduction in the composite pipeline and the energy transport in the produced fluid were solved by using finite difference methods. Numerical results of computational simulation of cool-down for three sandwich pipeline configurations under typical production conditions were presented. The analysis showed that the sandwich pipe with active heating is a viable solution to meet severe flow assurance requirements of ultra-deepwater oil production even under unplanned and prolonged cool-down conditions.

Accessing Technical Depth Needed To Conquer the Abyss

Professionals convening at the Offshore Technology Conference (OTC) 2005 2–5 May at the Reliant Center in Houston will be presented with a roster of technical presentations representative of a spectrum of challenges that confront the energy sector in its drive to go deeper. Industry specialists on such diverse topics as the progressive evolution of electrical submersible pumps (ESPs) in Brazil’s heavy-oil environment, ballistic mitigation on Thunder Horse, spectacular developments in deepwater pipe-lay systems, field experience with multiphase boosting systems, and refined laser technology to locate riser annulus breaches will share firsthand knowledge of steps now being taken to conquer the abyss. The OTC Program Committee selected some of the outstanding papers to be presented at the conference. Pioneering ESPs in Deepwater The continuous challenge to advance submarine exploration into ever-deeper water has stretched the learning curve in a number of technology areas, including ESP systems. Petrobras’ offshore Campos and Espirito Santo basins, with heavy-oil (ranging from 14 to 19º API) reservoirs at water depths from 400 to 3000 m, have provided valuable experience in both ESP-technology development and application. The mature fields in the Campos basin continue to provide the laboratory for testing new ESP technologies without jeopardizing expensive deepwater operations. “New technological levels have been and continue to be addressed in the application of ESP systems in ultradeep water,” said Pellegrini Ribeiro, lead author of OTC 17415 on the use of subsea ESPs in Brazil. “The outcome of our research and development efforts translates to a savings of hundreds of millions of dollars in that rather than building an expensive platform, several ESP systems can be installed to pump oil from distant wells to a nearer facility, such as an existing platform or process plant that is operating below its capacity.” Having pioneered the use of a subsea ESP with prototype testing on the RJS-477 well at 1106 m during 1998–2001, Petrobras has included research and development on ESP specifications in its PROCAP 3000. The goal of this development program is to create methods and equipment to produce oil in ultradeep waters. As part of the PROCAP 3000, several projects have been set for developing ESP assembly systems that are capable of pumping heavy oil, containing 50% free gas, at a high flow rate. Why the interest in ESP systems? The long production lines and low oil temperatures inherent with subsea satellite wells create limitations for natural-flow and gas lift methods. These limitations point out the need to develop an alternative method, such as the ESP method that is not adversely affected by distance from the well to the host platform. Challenges to ESP-equipment development have centered on increasing nonfailure operation time and increasing ESP capacity to pump heavy oil containing large quantities of free gas. The three major issues of concern are reliability, deepwater qualifications, and well location at a long distance from a floating production, storage, and offloading (FPSO) facility. High-temperature, high-horsepower motors have been specifically designed for ESP applications involving deeper wells, high flow rates, and difficult environments. Also, a new pump design needed to be achieved for producing oil containing as much as 50% free gas.

Wellstream Booster Solution for Deepwater and Ultradeepwater Oil Fields

This article, written by Technology Editor Dennis Denney, contains highlights of paper OTC 16447, "An Efficient Wellstream Booster Solution for Deepand Ultradeepwater Oil Fields," by Eivind Birkeland, Kvaerner Oilfield Products A/S; Jo Jernsletten, Kvaerner Process Systems A/S; Geir Olsen, Kvaerner Oilfield Products A/S; Jan Gunnar Waalmann, Aker Kvaerner Engineering and Technology A/S; and Knut Nyborg, Kvaerner Oilfield Products A/S, prepared for the 2004 Offshore Technology Conference, Houston, 3-6 May.

Seismic-Pattern Recognition Applied to an Ultradeepwater Oil Field

This article is a synopsis of paper SPE 69483, "Reservoir Geophysics: Seismic-Pattern Recognition Applied to an Ultradeepwater Oil Field in Campos Basin, Offshore Brazil," by Paulo Johann, Dayse D. de Castro, and Alberto S. Barroso, Petrobras S.A., originally presented at the 2001 SPE Latin American and Caribbean Petroleum Engineering Conference, Buenos Aires, 25-28 March.