Upstream Petroleum Operations Research Articles

Flow regime transition maps and pressure loss prediction of gas, oil and water three-phase flow in the vertical riser downstream 90° bend using data driven approach

The simultaneous flow of gas, oil & water is frequently encountered in pipelines during upstream petroleum operations. The multiphase flow results in different types of flow patterns based on the flow rates of fluids, physical properties and geometry of the flow domain. The flow behavior is characterized based on the governing flow patterns. Hence, the information about the flow patterns, regimes maps and resulting pressure loss are important for multiphase flow system design and optimization. The current work is focused on construction of gas, oil and water, three-phase flow regime maps and developing pressure loss prediction correlations for the flow through vertical riser downstream 90° bend. The pipe internal diameter (ID) is 6 inch and the bending radius to pipe diameter ratio is 1. The observed gas-liquid flow patterns are slug, churn, and semi-annular churn flow patterns at the given range of superficial velocities of fluids. The flow pattern data has been used to construct flow regime maps to analyze the variation in flow patterns with flow rates of fluids and compared with the available works in the literature. In addition, the change in pressure loss with respect to flow patterns has been analyzed. Previous models are used for the prediction of pressure loss. However, according to the assessment, the models underpredicted the pressure loss. Based on three-phase pressure loss data, multiple linear regression analysis has been carried out to propose new correlations for pressure loss prediction. Comparison of the calculated and experimental data showed good agreement between the results. The knowledge of flow regime variation and pressure loss correlations can help flow assurance engineers in designing and optimization of multiphase flow systems.

Energy transition in the UKCS – Modelling the effects of carbon emission charges on upstream petroleum operations

The UK has ambitious decarbonisation, climate change mitigation and energy transition goals. The upstream petroleum sector in the UK shares in these goals, as evidenced by its North Sea Transition Deal and as set out in its sector ‘Roadmap 2035’ for emissions reduction. Participation in an emissions trading scheme as a mechanism for achieving these goals is a key strategy identified in the sector roadmap. Currently, only qualifying installations in the UK Continental Shelf (UKCS) are charged for their emissions. Notwithstanding, prudent non-qualifying operators are also now incorporating these charges in their financial models for asset valuation purposes. This paper uses a recently updated database of 21 new UKCS fields to examine the effects of carbon emission charges on upstream petroleum operations in the province. We find that emission charges increase operating expenditures, which results (1) an acceleration of the timing of the economic limit of fields, leading to significantly lower petroleum production and carbon emissions; and (2) a reduction in the economic value of petroleum fields hence diminishing the competitiveness of the UKCS. These outcomes advance the energy transition cause of the UK. However, they give rise to major implications for the UK, including energy security, jobs, risk of exposure to a carbon leakage situation, and so on. We advocate a ‘just transition’ approach to energy transition, where petroleum production in the UKCS progresses but with a carbon footprint that is reduced and consistent with an economic optimum.

Identifying Applications of Machine Learning and Data Analytics Based Approaches for Optimization of Upstream Petroleum Operations

Over the past few years, machine learning and data analytics have gained tremendous attention as emerging trends in the oil and gas industry. The usage of modern tools and high‐end technologies produces a large amount of heterogeneous data. The processing and managing of this data at higher speed for performance analysis and prediction for field development and planning has become a significant area of research. Several challenges that are encountered in forecasting the operational characteristics using the traditional approaches have led to research based on implementation of machine learning and data analytics techniques in exploration and production activities to attain higher accuracy, which allows making informed choices. Herein, a review is presented to evaluate the applications and scope of machine learning and data analytics in the oil and gas industry to optimize the upstream operations, including exploration, drilling, reservoir, and production. The challenges associated with traditional methods for forecasting the operational parameters are identified and case studies associated with performance optimization using predictive models that have aided in improving the decision‐making process are discussed.

Accelerating oil and gas investment and reserves by design

Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence (Adams 1770). Some people unfamiliar with upstream petroleum operations, some enterprises keen to sustain uncontested land use, and some people against the use of fossil fuels have and will voice opposition to land access for oil and gas exploration and production. Social and economic concerns have also arisen with Australian domestic gas prices tending towards parity with netbacks from liquefied natural gas (LNG) exports. No doubt, natural gas, LNG and crude-oil prices will vary with local-to-international supply-side and demand-side competition. Hence, well run Australian oil and gas producers deploy stress-tested exploration, delineation and development budgets. With these challenges in mind, successive governments in South Australia have implemented leading-practice legislation, regulation, policies and programs to simultaneously gain and sustain trust with the public and investors with regard to land access for trustworthy oil and gas operations. South Australia’s most recent initiatives to foster reserve growth through welcomed investment in responsible oil and gas operations include the following: a Roundtable for Oil and Gas; evergreen answers to frequently asked questions, grouped retention licences that accelerate investment in the best of play trends; the Plan for ACcelerating Exploration (PACE) Gas Program; and the Oil and Gas Royalty Return Program. Intended and actual outcomes from these initiatives are addressed in this extended abstract.

Analysis and evaluation of the environmental impacts of 'upstream' petroleum operations

Sustainability is increasingly considered an essential business function, but in Libya, petroleum companies are slow to address operational issues that could reduce environmental concerns. This study aims to evaluate the environmental impacts of upstream petroleum operations. The methods adopted in the study are a literature review, an environmental impact assessment (EIA) study and qualitative analyses from, fieldwork trials and 56 semi-structured interviews. The results of the study show that the main environmental impacts are aquatic, terrestrial or atmospheric, with the most significant pollutants linked to the latter category, mainly from engine exhausts, turbine emissions, gas flaring and venting. Major environmental degradations are identified in Libyan upstream operations and a number of recommendations formulated minimising their effect. Particular importance is placed on establishing strict sustainability policies and regulations, and the implementation of an environmental management system.

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.

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

Integrated Project Management for Hydrocarbon-Portfolio Analysis and Optimization

This article, written by Technology Editor Dennis Denney, contains highlights of paper SPE 100967, "Applying Integrated Project-Management Methodology to Hydrocarbon-Portfolio Analysis and Optimization," by Sholarin E. Adekunle, Curtin University of Technology, prepared for the 2006 SPE International Oil & Gas Conference and Exhibition in China, Beijing, 5–7 December. Aligning hydrocarbon investments with constantly shifting business goals and priorities is a major challenge for E&P staff. There are many factors that can contribute to project failure, resulting in large investments to improve the predictability, producibility, and quality of evaluations. While, techniques such as estimating, risk assessment, process management, deliverables management, and project management improve project execution, they do not address the critical issue of scheduling or that of achieving satisfactory cost performances. This study explored the strategic significance of modern portfolio theory and its applicability to various oil and gas investments. Introduction Petroleum exploration and field development deal with many unknowns. Risks and uncertainties associated with income and life-cycle-cost factors [such as potential reserves, capital expenditures, operating expenditures, production rate, oil and gas pricing, geological success ratios, and intervention vessel expenses (especially for subsea wells)] make it difficult to forecast earnings and cash flow for prospects. Managing risk in petroleum ventures is very important, with the possibility of massive cost overruns and delays. Decision making and project management are disciplined work processes that can be measured and optimized with uniform templates and procedures. A project profile outlining the ideal outcome reduces decision analysis because proposed solutions are aligned directly to goals, not solutions. Decisions, therefore, must be made in full alignment with the project's ideal intended outcome. This paper demonstrates balancing the strategic value of projects, financial return, and risk profile to select an optimal portfolio before commit-ting funds and resources. Applying Project-Management Principles Although upstream petroleum operations are not a traditional area for conventional practice of project-management techniques, recent literature has shown an increasing rate of embracing project-management principles in exploration, drilling, and production operations. Project management has been defined as applying knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of various management processes; knowledge areas; and technical and management skills, methods, and techniques, which facilitate a successful project outcome. A project can be considered as a temporary endeavor undertaken to create a unique product, service, or result. Here, a temporary project has a definite beginning and end, and a unique product, service, or result is different in some distinguishing way from all other products, services, or results. Oil exploration and field development are temporary endeavors that have the ultimate goal of producing hydrocarbons and, therefore, fit within the definition of a project. It begins when a creative idea is moved officially into the concept-evaluation phase and ends when a field is abandoned.

06/02068 Natural gas domestic market development for total elimination of routine flares in Nigeria's upstream petroleum operations: Sonibare, J. A. and Akeredolu, F. A. Energy Policy, 2006, 34, (6), 743–753.

06/02068 Natural gas domestic market development for total elimination of routine flares in Nigeria's upstream petroleum operations: Sonibare, J. A. and Akeredolu, F. A. Energy Policy, 2006, 34, (6), 743–753.

Between responsibility and rhetoric: some consequences of CSR practice in Nigeria's oil province

This article brings together some of the findings of a three-year study of the community dimensions of upstream petroleum operations in Nigeria, Africa's largest oil exporter. It examines the corporate social responsibility (CSR) practices of transnational petroleum-producing companies, focusing on the immediate and long-term ethnographic and social consequences of such practices on the local communities where oil extraction takes place. The article examines, more importantly, how such practices and the identified consequences intersect with the regulatory/institutional framework governing upstream petroleum operations in Nigeria. By shifting attention away from the dominant, ethnic view of conflict and instability in the country of study, and looking at specific instances of ethnographic and social crisis associated with corporate social responsibility, the article offers some insights into some present-day challenges to sustainable development in Africa, and unveils an important present-day mechanism through which the image of resource-rich African countries as strife-torn is entrenched.

Natural gas domestic market development for total elimination of routine flares in Nigeria's upstream petroleum operations

Several research findings confirmed that gaseous emissions and thermal radiation emanate from flaring activities during separation of oil from gas in the petroleum upstream operations. This, coupled with identified degradation potential of flares, makes flaring of about 71 millionm3/day of associated gas a great concern. In this paper, several efforts hitherto made by government and organized private sectors at monetizing associated natural gas being flared on daily basis in Nigeria were reviewed. Domestic market development, if adopted, could eliminate routine gas flaring by 2008, meeting a goal set by Nigerian Government. Various scenarios considered showed that relatively minor amounts of natural gas could be consumed domestically for cooking; the balance would be absorbed by thermal electricity generation. It could lead to total consumption of between 92 and 140 millionm3/day of natural gas in the country, representing a fraction of the domestic energy market.

Climate policy and dynamic efficiency gains: A case study on Norwegian CO 2-taxes and technological innovation in the petroleum sector

Against increasing scientific evidence of human-induced global warming, and prevailing uncertainties regarding the fate of the Kyoto Protocol, the use of environmental taxes has been gaining increasing popularity in the OECD region. Economists often conjecture that such instruments provide a continuous incentive for technological innovation, which is likely to be a key determinant for success or failure in climate policy, at least in the long turn. However, there is little empirical evidence available to justify claims of that kind. The objective of this paper is to provide such evidence, by assessing the impacts of Norwegian CO 2-taxes, the key instrument in Norway’s climate policy, on technological innovation in upstream petroleum operations. The balance of evidence suggests that the introduction of CO 2-taxes has provided some incentive for innovation that has shifted petroleum operations in a less emission-intensive direction. That said, the pattern of technological change pertains mostly to incremental process innovations, cumulative improvements, and adaptations of technologies already available. These insights may assist policymakers when formulating policy strategies and selecting instruments for climate change mitigation.

Climate policy and dynamic efficiency gains A case study on Norwegian CO2-taxes and technological innovation in the petroleum sector

Against increasing scientific evidence of human-induced global warming, and prevailing uncertainties regarding the fate of the Kyoto Protocol, the use of environmental taxes has been gaining increasing popularity in the OECD region. Economists often conjecture that such instruments provide a continuous incentive for technological innovation, which is likely to be a key determinant for success or failure in climate policy, at least in the long turn. However, there is little empirical evidence available to justify claims of that kind. The objective of this paper is to provide such evidence, by assessing the impacts of Norwegian CO2-taxes, the key instrument in Norway's climate policy, on technological innovation in upstream petroleum operations. The balance of evidence suggests that the introduction of CO2-taxes has provided some incentive for innovation that has shifted petroleum operations in a less emission-intensive direction. That said, the pattern of technological change pertains mostly to incremental process innovations, cumulative improvements, and adaptations of technologies already available. These insights may assist policymakers when formulating policy strategies and selecting instruments for climate change mitigation.

Oil Prices vs. Hurdle Rates for Upstream Petroleum Operations: ABSTRACT

Oil Prices vs. Hurdle Rates for Upstream Petroleum Operations: ABSTRACT