Upstream Sector Research Articles

Review of Oilfield Chemicals Used in Oil and Gas Industry

The petroleum industry includes the global processes of exploration, extraction, refining, transportation and marketing of natural gas, crude oil and refined petroleum products. The oil industry demands more sophisticated methods for the exploitation of petroleum. As a result, the use of oil field chemicals is becoming increasingly important and has received much attention in recent years due to the vast role they play in the recovery of hydrocarbons which has enormous commercial benefits. The three main sectors of the petroleum industry are Upstream, Midstream and Downstream. The Upstream deals with exploration and the subsequent production (drilling of exploration wells to recover oil and gas). In the Midstream sector, petroleum produced is transported through pipelines as natural gas, crude oil, and natural gas liquids. Downstream sector is basically involved in the processing of the raw materials obtained from the Upstream sector. The operations comprises of refining of crude oil, processing and purifying of natural gas. Oil field chemicals offers exceptional applications in these sectors with wide range of applications in operations such as improved oil recovery, drilling optimization, corrosion protection, mud loss prevention, drilling fluid stabilization in high pressure and high temperature environment, and many others. Application of a wide range of oilfield chemicals is therefore essential to rectify issues and concerns which may arise from oil and gas operational activities. This review intends to highlight some of the oil field chemicals and their positive applications in the oil and gas Industries.

Measuring economies’ pivotability on the global value chain under the perspective of inter-country input–output network

Under the dual background of trade disputes between China and the United States and the epidemic of 2019 novel coronavirus, the existing Global Value Chain (GVC) division and trading system are facing unprecedented impact. This paper reinforces the present studies on international trade by analyzing the fragments of GVC, which are made of numerous Inter-Country Input–Output (ICIO) relations. We first redefine the inter-country and inter-sector propagating process of intermediate goods, coming up with the concept of Strongest Relevance Path Length (SRPL) based on Revised Floyd–Warshall Algorithm (RFWA). Second, enlightened by betweenness centrality, we introduce Weighted Betweenness Centrality of Edge based on RFWA to measure the Value-Added Pivotability of Input–Output Relations, which brings forth pivotability at domestic, international, and global levels. The results show how much a given country can influence the world economic pattern by linking worldwide upstream and downstream industrial sectors, be it at home or abroad. Also, we can try to explain what is the cause of the phenomenon that the economic influence of nations is trading off and taking turns with all sorts of local or even global evens happening.

Methane emissions from upstream oil and gas production in Canada are underestimated

Methane emissions were measured at 6650 sites across six major oil and gas producing regions in Canada to examine regional emission trends, and to derive an inventory estimate for Canada’s upstream oil and gas sector. Emissions varied by fluid type and geographic region, with the heavy oil region of Lloydminster ranking highest on both absolute and intensity-based scales. Emission intensities varied widely for natural gas production, where older, low-producing developments such as Medicine Hat, Alberta showed high emission intensities, and newer developments in Montney, British Columbia showed emission intensities that are amongst the lowest in North America. Overall, we estimate that the Canadian upstream oil and gas methane inventory is underestimated by a factor of 1.5, which is consistent with previous studies of individual regions.

Evaluation Of The Efficacy Of Iot Deployment On Petro-Retail Operations

After the Internet revolution, Internet of Things (IoT) is expected to be the next big technological change, connecting equipment as well as everyday objects to help businesses explore new ways of creating and delivering value. In the Oil & Gas industry context, IoT has been deployed extensively in the upstream sector and also to some extent in the mid-stream sector. However, it’s implementation in the downstream (retail) sector has been limited. This paper explores the applicability and impact of deploying an IoT solution at a fuel retail outlet. In our experiment, a live outlet was chosen in Kolkata, where a limited IoT solution was deployed, for a period of 3 months. Our research shows that IoT implementation can yield significant operational benefits by reducing the response times, leading to increased operational uptime and hence sales. It can also help improve the root cause analysis process by providing increased data to identify the issue(s).

Local content implementation and development in Ghana\u2019s upstream oil and gas sector for sustainable development: contemporary issues on policy management

The need to develop and boost the potentials of Ghana’s upstream oil and gas activities has been advocated by policymakers, academics, and financial institutions since the discovery of oil and gas in commercial quantities. It has been argued that if well implemented, upstream activities have a trickledown effect on the local content policy linkages that apart from taxes, can lead to improved financial and social benefits. In this study, how Ghana can use local content policy in upstream oil and gas operations to maximum economic and social benefits for the good of the Ghana government, citizens, and the Multinational Oil Companies, is the main question to be answered? To address this question, comprehensive analysis of local content laws and policies and stakeholder consultations are conducted. The paper argues that an effective local content policy towards achieving sustainability in the upstream oil and gas industry demands balancing the needs of policymakers, local communities, Multinational Oil Companies, and regulators to succeed. The study recommends a local content implementation master plan; active participation of key stakeholders (government, citizens and Multinational Oil Companies); and integration of forward and backward linkages in the implementation of Ghana’s upstream local content laws and policies.

International Production Networks and the Propagation of Financial Shocks

This paper investigates how external sector-level financial shocks are transmitted to a small open economy through international production networks. Using a multi-sector two-country model with asymmetric country size, I show analytically that a financial shock to the large country's production sector affects downstream sectors (through a price effect) and upstream sectors (through a direct demand effect and a complementarity or substitution effect). These effects work through international production networks, affecting the small country's output and GDP. Quantitatively, using simulation exercises and structural factor analyses, I show that U.S. sector-level financial shocks account for a significant fraction of the fluctuations in Mexico's GDP around the global financial crisis. International production networks amplify the real effect of external financial shocks by a factor greater than ten during the crisis.

Optimal insurance contract specification in the upstream sector of the oil and gas industry

The upstream sector of the Oil and Gas (O&G) industry is recognized by its capital-intensive projects and complex and hazardous associated recovery and production processes, thus susceptible for large and financially damaging accidents. In this context, to avoid the risk and impact of high expenses, O&G companies usually acquire insurance contracts. In practice, although the contract format is typically pre-specified, its parameter magnitudes can be adjusted aiming at maximizing the company total wealth. Therefore, this work proposes a holistic methodology to assess the optimal parameter specification of an insurance contract in the upstream sector of the O&G industry. A non-convex stochastic optimization problem is constructed aiming at maximizing a risk-adjusted measure of the policyholder total wealth. The modeling takes into account the uncertainty on the financial loss of an accident by making use of the safety barriers and precursor information framework. The non-convex optimization problem is cast as an equivalent mixed-integer linear programming problem by combining the scenario-based representation approach with a set of binary reformulation procedures. We illustrate the applicability of the proposed methodology with a set of numerical experiments. In a nutshell, we found that the proposed parameter specification methodology resulted in greater predictability when compared to two quantile-based specification policies and an uninsured company. In fact, the second best policy presented a standard deviation 103% higher than the proposed methodology. Furthermore, the model also provided greater protection against extreme events, since the second best policy presented a Conditional Value-at-Risk 41% higher than the proposed methodology.

Health and Well-being Challenges of Workers on the Upstream Sector in the Oil and Gas Industry

Introduction: Occupational nature, strenuous physical activity, shift work, spatial and geographical location, as well as support facilities and equipment, pose greater risks to individuals in the oil and gas industry, especially those engaged in offshore oil exploration and production activities. The purpose of this article is to explain the issue of health and well-being of oil and gas industry workers with regard to accidents in this industry, which can be better and more effective by managing safety, health and environment (HSE) by modeling events in other countries. Methods: This review article analyzes the health problems of oil and gas workers. The research question is what issues and challenges the upstream part of the oil and gas industry has in the field of employee welfare. Physical, chemical, biological and ergonomic risk factors have been investigated. It has also pushed the specific problems of the drilling industry (restrictions on offshore work, psychological hazards, stresses from frequent relocations, and sleep quality to choose from). Results: Physical, chemical and biological hazards have been identified as the most important hazards. In addition, psychological hazards have a very serious effect on health and safety. Conclusion: Systematic assessment of health risks, personnel health, training programs, accident analysis, is an effective method of HSE management.

A critical examination of the role of public participation in petroleum development contract in Nigeria

PurposeThe topic is examined with a view to ascertaining the various methods by which indigenous oil companies can participate in petroleum development contract in Nigeria. Also, the raison d’etre of the policy will be considered to see whether the government has achieved its primary aim and how successive government has approach the issue with a view to determining the best policy to adopt. The challenges facing this policy will be considered with a view to unfold whether the Petroleum Industry Bill proffers solution.Design/methodology/approachThis methodology of research is doctrinaire and analytical. The author used the available statute and case law in extrapolation of the views expressed in this paper; where necessary, secondary data as sourced from existing literature was used.FindingsThis paper revealed that the existing laws in Nigeria do not support public participation in the petroleum sector. so much is in the hands of the government. The paper also found that this government's monopoly of the sector is one of the reasons for the slow level of development in the sector.Originality/valueThis paper is original to the extent that it focusses on a relatively new area of public participation in the upstream petroleum sector in Nigeria. Most papers have often focussed on the downstream sector; however, this study seeks to re-direct the debate to the upstream sector.

The Economic and Long-Term Health Consequences of Canadian COVID-19 Lockdowns.

To prevent exponential spread of COVID-19, many governments restricted economic activity through lockdowns. We model these restrictions as shocks to productivity by sector and trace total equilibrium effects across the economy using techniques from production network economics. We combine this economic model with an epidemiological model of income shocks to long-term health. On both long-run health and economic grounds, it is better to keep upstream sectors such as transportation, manufacturing, and wholesale open than consumer-facing sectors such as retail and restaurants.

Performance of Selected Natural Bio-Polymers for Fluid Loss Control in Water-Based Drilling Fluid: A Literature Review

Fluid loss to the formation is a well-known problem during exploration and production phases of the upstream sector of oil and gas industry. In fluid filtration formation reduction, it is customary to add chemical additives such as polyanionic, lignosulfonate and carboxyl methyl cellulose in different proportions to build a decent filter cake. This will serve as semi-permeable membrane around the well bore. However, to minimize the cost, the use of less expensive, widely available and environmental benign natural polymers is required. Therefore, the aim of this study is to evaluate the performance of some selected natural biopolymers for fluid loss control in water-based drilling fluid as majority of the polymers used for controlling fluid losses are imported and are quite expensive. Importation, no doubt, adds to the overall co st of drilling operations. However, with the use of local polymers, the operational cost could be reduced, new markets created, which stimulate and promote their cultivation, preservation and job creation. In view of this, the study has evaluated and optimized four less investigated local biopolymers using a reduced central composite experimental protocol for the development of new generation of water-based drilling fluids. The study revealed that there is a significant improvement in the properties of the beneficiated clay. Therefore, the study upon review suggested that their heological properties of the base fluid slurry significantly improved in the presence of detarium microcarpum, food gum, roseline fiber, coconut fiber and local barite. The study contribution to knowledge indicated that C. populnea (food gum fiber), coconut fiber and C. sabdariffa (roseline) has been widely used in polymer industry as reinforcements. Keywords: Optimization, Polymer Admixture, Upstream Sector, Oil Industry, Gas Industry, Nigeria

Canadian Operator Works To Transform an Oil Field Into a Hydrogen Factory

As the oil and gas industry scans the known universe for ways to diversify its portfolio with alternative forms of energy, it might want to look under its own feet, too. For inside every oil reservoir, there may be a hydrogen reservoir just waiting to get out. The concept comes courtesy of Calgary-based Proton Technologies. Founded in 2015, the young firm is the operator of an aging heavy oil field in Saskatchewan. There, on a small patch of flat farm-land, Proton has been producing oil to pay the bills. At the same time, it has been experimenting with injecting oxygen into its reservoir in a bid to produce exclusively hydrogen. Proton says its process is built on a technical foundation that includes years of research and works at the demonstration scale. Soon, the firm hopes to prove it is also profitable. While it produces its own hydrogen, Proton is licensing out the technology to others. In January, fellow Canadian operator Whitecap Resources secured a hydrogen production license of up to 500 metric tons/day from Proton. Whitecap produces about 48,000 B/D, and thanks to carbon sequestration, the operator has claimed a net negative emissions status since 2018. Proton says it has struck similar licensing deals with other Canadian operators but that these companies have not yet made public announcements. Where these projects go from here may end up representing the ultimate test for Proton’s innovative twist on the in-situ combustion process known so well to the heavy-oil sector. “In-situ combustion has been used in more than 500 projects worldwide over the last century. And, they have all produced hydrogen,” said Grant Strem, a cofounder and the CEO of Proton. Strem is a petroleum geologist by back-ground who spent the majority of his career working on heavy-oil projects for Canadian producers and research analysis with the banks that fund the upstream sector. While his new venture remains registered as an oil company, the self-described explorationist has come to look at oil fields very differently than he used to. “In an oil field, you have oil—hydrocarbons, which are made of hydrogen and carbon. The other fluid down there is H2O. So, an oil field is really a giant hydrogen-rich, energy-dense system that’s all conveniently accessible by wells,” Strem explained. But, in those past examples, the hundreds of other in-situ combustion projects, hydrogen production was merely a byproduct, an associated gas of sorts. It was the result of several reactions generated by air injections that producers use an oxidizer to heat up the heavy oil and get it flowing. What Proton wants to do is to super-charge the hydrogen-generating reactions by using the oil as fuel while leaving the carbon where it is. That ambition includes doing so at a price point that is roughly five times below that of Canadian natural gas prices and an even smaller fraction of what other hydrogen-generation methods cost.

Assessment of Carbon Footprint for the Textile Sector in France

Global warming represents a major subject on all society levels including governments, economic actors and citizens. The textile industry is often considered a polluting activity. In this project, French textile manufacturers sought to quantify the carbon footprint (CF) of sold clothes and household linen using Life Cycle Assessment in France for the purpose of reducing it to meet the constraints of Paris Agreement by 2050. First, manufacturers calculated the carbon footprint of 17 clothes and household linen products and established alternative scenarios for four production routes. Secondly, they modeled the supply of the upstream sector through different countries. Based on imports of textile products, their calculated CF for one French person reaches 442 kg of CO2eq/year. Means of action to reduce this carbon footprint by a factor of 6 (74 kg of CO2eq/person/year for textiles) are calculated and are the following: installing the most energy-intensive production processes in a country with a low carbon electricity mix, avoiding unsold goods, implementing eco-design approaches and enhancing the value of end-of-life products with reuse or recycling. Therefore, CF for textiles per capita is reduced to 43 kg CO2eq/year which goes beyond the objectives of Paris Agreement and facilitates carbon neutrality in the textile sector. The first priority for reducing the French carbon footprint of clothes and household linen would be to locate textile production in countries with (i) low carbon electricity, (ii) to reduce unsold items, and (iii) to elaborate ecodesign of product including circular economy.

Sedentary fish as indicators of changes in the river flow rate after impoundment

The natural flood pulse of the Amazon basin has been altered progressively by the installation of hydroelectric dams, which have had a potentially adverse impact on the local fauna. Fish are sensitive to environmental changes, and one the way to assess how they respond is through the analysis of life history traits, such as growth patterns and reproduction. Here, we evaluated the life history traits of two sedentary cichlids, Geophagus argyrostictus and Geophagus altifrons, in the middle Xingu River (upstream and downstream sectors) pre- and post-impoundment including the flood and low water hydrological seasons. The mass-length relationship, condition factor (K), gonadossomatic index (GSI), breeding season, gonadal stages, and the length at 50% sexual maturity (L50) were analyzed. Data on river flow rates and the characteristics of the fish were collected during the pre- and post-impoundment periods. Post-impoundment, the discharge of the Xingu decreased in downstream sector. During the pre-impoundment period, the K of G. argyrostictus and female G. altifrons was lower in the upstream sector in both seasons, but higher in the downstream sector to G. argyrostictus. The GSI was lower in the post-impoundment period in both sectors and seasons in G. argyrostictus, whereas in the G. altifrons females, it was higher in the downstream sector in the low water season, but lower in the upstream sector in both seasons. In G. argyrostictus, spawning occurred in a single phase and was restricted to the low water season in both periods, whereas in G. altifrons, spawning was multiple. There was a reduction in the frequency of immature individuals in the upstream sector post-impoundment. The L50 was lower, principally in the upstream sector, in both species. Our results indicate that the growth patterns and reproduction of the two populations has been impacted, especially in the endemic G. argyrostictus. The construction of dams thus appears to place endemic species under a greatest risk of extirpation. These results provide important insights for the improvement of fish resource monitoring and the development of adequate management techniques.

SPE Technical Directors’ Outlook - The Industry’s Transformation in 2020 and What It Means for the Future

For an industry in which terms like “first ever,” “unparalleled,” “unprecedented,” and “novel” are often over-used to the point of losing their meaning, 2020 hit hard with the true meaning of those words as the COVID-19 pandemic exploded onto the world and disrupted almost everything about life as we knew it. The oil and gas industry, which had begun showing signs of recovery from a generational downturn, was hit particularly hard. Jobs were lost, companies shuttered, and supply chains upended. But the same combination of audacity and ingenuity that has driven the industry for over a century took hold quickly. Oil and gas people love - and need - to network, share ideas, transfer and apply technology, and gather intelligence. So, when in-person conferences, workshops, and tradeshows were suddenly canceled or indefinitely postponed, entities such as the Society of Petroleum Engineers scrambled to use digital technology to take those events online and make them virtual. While not a perfect replacement, virtual online events offer some unique advantages, as SPE technical directors pointed out in their annual roundup. Digitalization, long a controversial topic among many in the upstream sector, is now being called essential by the directors across the six SPE technical disciplines they lead. Automation is mentioned frequently in the directors’ comments as a growing contributor to efficiency and risk reduction. Capital discipline, balance sheet management, and cash flow are seen as crucial, as are collaboration (both internal and external) and value - ranging from core values to value-driven data, to provable, value-based outcomes. Agility and the ability to comply with environmental, social, and governance (ESG) criteria have taken on new importance. So has work - how and where we do it, and how we balance it with other aspects of life. Knowledge dissemination is considered more important than ever. Uncertainty continues to characterize the upstream sector, even more so than before the pandemic, but at least one thing is certain: The work of the industry, and the way in which people who comprise it work, is forever changed. The SPE technical disciplines and the directors who lead them are as follows. Completions - Terry Palisch, CARBO Ceramics Data Science and Engineering Analytics - Silviu Livescu, Baker Hughes Drilling - David Reid, NOV HSE and Sustainability - Annamaria Petrone, Eni Production and Facilities - Robert Pearson, Glynn Resources Reservoir - Erdal Ozkan, Colorado School of Mines Here, they reflect on a truly unprecedented year and share their outlooks for their disciplines going forward.

Incumbents achieving coopetition with disruptively technological entrants: a case from Chinese animation industry

ABSTRACT A disruptive technology threat replaces incumbents. While a prior disadvantage of incumbent competing against disruptive technological entrants lacks an effective incumbent’s competitive response. This research studied the case of a Chinese top animation firm, Comicfans Co., Ltd. This study aims to process a triangular qualitative research in the form of integrated qualitative research in terms of more comprehensive triangular formats. Furthermore, this study expands coopetition theory into entrant vs. incumbent under disruptive technology context and reveals how an incumbent-built competitive forbearance and formed coopetition with disruptive technological entrants by intra-industry integration (upstream and downstream) and cooperation (exploration and exploitation). When the disruptive entrants are in upstream substitution and show extension downstream, incumbent companies can adopt a strategy of diversified integration of downstream channels and cooperation with upstream entrants to increase the multi-point advantage and resource symbiosis in the downstream sectors against the entrants to obtain competitive priorities. When disruptive entrants are in downstream substitution and show an extension to upstream, incumbent companies can adopt a strategy of diversified integration of upstream product/business and exploitation cooperation with downstream entrants to improve the multi-point advantages and resource complementarity in the upstream sector against the entrants so as to obtain competitive priorities.

Global value chains, firms, and wage inequality: Evidence from China

How does participating or moving to more upstream in the global value chains (GVCs) affect the premium paid to skilled compared to unskilled labor within firms? In this paper, we develop a model of heterogeneous firms with intermediate trade and two skill inputs, in which we apply the fair wage hypothesis to predict the wage premium changes according to firms' GVCs activities. The model predicts that firms' backward GVC participation, as measured by the share of foreign value-added content in exports (FVAR), has an ambiguous impact on wage inequality of skills, which depends on the relative importance of “FVAR-labor substitution effect” and “FVAR-profit effect.” However, moving to upstream sectors in GVCs, as measured by the export varieties' upstreamness (or average distance from final use), raises a firm's wage premium. Using detailed Chinese firm-level data from 2000 to 2006, we develop a Mincer-type empirical model to study the wage premium changes associated with FVAR and upstreamness. We find robust empirical evidence that the rise of wage inequality in China mainly arises from moving to more upstream sectors rather than changing GVC participation.

Space Economy: A Case Study on the Space Industry in the United Kingdom

Activities in the space sector have evolved in which the role of the private sector has increased so that it can accelerate growth. Attention to space activities continues to increase, as seen from the space sector budget continues to increase and it is predicted that in 2040 the space economic will be in the range of $ 926 billion or $ 1.1 trillion. This is the total of the global space economy (activities in the global space economy value chain), one of which is a contribution from the British space industry. This study describes how the model of the space sector company was developed, and examples of companies in the UK that run a business in the space sector. It is expected that the business expansion model developed by companies engaged in the space sector with the large-size category can be found out. The study method used a descriptive method. The results show that the Space industry in the UK is developing in each group of the value chain, including in the last cluster of the space economy value chain (downstream sector) - industries that are included in the spinoff category, as well as development in the upstream sector. The company's expansion was demonstrated by the establishment of subsidiaries interested in investing in the British space sector. The space industry in the UK has grown tremendously and this is an economic driving sector that can contribute to revenue for the country and play a role in the global space economy value chain.

Financial Feasibility Study of Oil and Gas Well in Indonesia Case Study: New Oil and Gas Well in PT ABC

PT ABC is a subsidiary of PT PXZ (state owned companies under SKK Migas and PT Pertamina supervision) which is engaged un upstream sector in Indonesia. Seeing the continuing decline in oil and gas reserves in Indonesia and increasing demand, the government request all upstream company to find more source. PT ABC is trying to continue to increase production of oil and gas by opening a new potential project. Revenue sharing will use the gross split method. The purpose of writing this final project is to help PT ABC analyze new projects that will be undertaken. The analysis is carried out by looking at the business situation externally and internally and will be followed by economic analysis and risk analysis to identify the factor that has impact of the project. External analysis shows that the oil and gas industry is still an attractive industry for the government to run and support. However, in its implementation the company have to follow the applicable regulations since oil and gas industry are one of the strategic industries. In addition to funding activities, PT PXZ as the holding company is in a healthy financial condition. The results of economic analysis on the PT ABC project show that this project can be implemented and will generate profits for the company. The NPV to be obtained is USD 46.701.182, the IRR obtained is 17.15%, PBP will last for 5.52 years, and the PI has a value of 1,98. From the risk analysis, there are several factors that affect the economic results of the project, namely the price of oil and gas, the percentage of oil and gas sales, capital expenditure, and the percentage of oil and gas split.

Prominent Safety and Health Hazards During Crude Extraction: A Review of Process

The oil and gas industry is variably classified in upstream sector and downstream sector, with both sectors having exposure to a good number of hazards. The crude oil extraction process is one of the prime objectives of the upstream sector which includes the exploration of the crude, subsequent drilling operation and maximum recovery of the crude oil and gas from the site of operation. The uncontrolled flow of hydrocarbon in well may lead to blowout and will probably have environmental impact; thus, the extraction process can have a huge impact on the elements of earth, which include the soil (area of exploration and production), water and air. Approximately on global scale, there are forty-thousand crude oil sites and millions of people work or live in nearby vicinity; and workers associated with the job will be largely influenced in regard of their safety and health. On comparison of O & G extraction industry with the construction industry, the fatality rate goes up by 2.5 times (Goldberg and Moye in the first hundred years of the Bureau of Labor Statistics. US Department of Labor, 1985), as exposure to hazards like noise, radiation, H2S, crystalline silica is significant. In the article further, we review the safety hazards and health hazards associated with the extraction of the crude along with assessing the probable causes of the fatal incidents and exposure to hazardous substances. Workers involved in crude extraction process have potential impact on their health such as loss of immunity, cancerous cell development, liver and respiratory tract damage and neurological disorders.