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SEPTEMBER 2013JOURNAL OF PETROLEUM TECHNOLOGY www.spe.org/jpt

RESERVOIR PERFORMANCEAND MONITORING

COMPLETIONS TODAY

DRILLINGMANAGEMENTAND AUTOMATION

2014 SPE President Jeff Spath

Drilling in Space

Dry Tree Semisubmersibles

An Incubator for Startups

University R&D

FEATURES

Sept13_JPT_Cover.indd 1 8/16/13 12:16 PM

6 Performance Indices

10 Regional Update

12 Company News

14 Comments

18 Technology Applications

24 Technology Update

50 Young Technology Showcase

167 People

169 SPE News

171 Professional Services

175 Advertisers Index

176 SPE Events

Cover: National Oilwell Varcos hardware-in-the-loop drilling simulator supports drilling automation. Photo courtesy of National Oilwell Varco.

16 GUEST EDITORIAL: CREATING A COMMON SAFETY CULTURE The oil and gas industry can enhance safety practices by developing shared guidelines for work control, isolation standards, risk assessment, and safety observation programs.

32 2014 SPE PRESIDENT JEFF SPATH The incoming SPE president shares his goals and strategy with SPE and its members for the coming year.

42 SPE STRATEGIC PLAN IDENTIFIES FOUR PRIORITIES The new 5-year Strategic Framework will prioritize capability development, knowledge transfer, professionalism and social responsibility, and public education about the profession and industry issues.

56 DRILLING IN EXTREME ENVIRONMENTS: SPACE DRILLING AND THE OIL AND GAS INDUSTRY Drilling in extreme environments is helping drive advances in the oil and gas industry and presents analogs that can be mined for insight.

70 DRY TREE SEMISUBMERSIBLES: THE NEXT DEEPWATER OPTION Offshore engineering companies are taking existing technologies and lessons learned from floating rigs to create a new platform design that will allow drilling in deeper waters.

78 E&P SOFTWARE: THE NEXT GENERATION New ventures supported by Surge Accelerator, a company that offers financial support, training, and advice from mentors, are creating software to improve oil and gas operations.

86 SAUDI ARAMCO PRODUCTION HITS HISTORIC HIGHS The discovery of additional unconventional resources, new oil recovery techniques, and more university collaborations have led to Saudi Aramcos record performance and increased technical capabilities.

88 INDUSTRY/RESEARCH COLLABORATION ADVANCES OIL AND GAS TECHNOLOGIES Universities are working on some of the oil and gas industrys most challenging hurdles to develop new technologies and techniques to meet the increasing global demand for energy.

102 MANAGEMENT: TOP TRENDS IN THE OIL AND GAS SECTOR Deloittes fourth annual Oil & Gas Reality Check presents five trends affecting the oil and gas industry globally and discusses the direction these trends may follow.

166 LEGION OF HONOR SPE welcomes 83 members with 50 years of consecutive membership into the Legion of Honor.

An Official Publication of the Society of Petroleum Engineers.Printed in US. Copyright 2013, Society of Petroleum Engineers.

Volume 65 Number 9

ContentsSept13.indd 1 8/13/13 7:06 AM

TECHNOLOGY

The complete SPE technical papers featured in this issue are available free to SPE members for two months at www.spe.org/jpt.

108 Reservoir Performance and MonitoringErik Vikane, SPE, Production Manager, Statoil Oseberg East

109 New Time/Rate Relations for Decline-Curve Analysis of Unconventional Reservoirs

114 Instilling Realism in Production Forecasting Decreases Chances ofUnderperformance

118 Conformance Control and Proactive Reservoir Management Improve Deepwater Production

123 Distributed Microchip System Records Subsurface Temperature andPressure

126 Completions TodayPaul Cameron, SPE, Senior Well-Engineering Adviser, Global Wells Organization, BP

127 Advancements in Completion Technology Increase Production intheWilliston Basin

130 North American Completion Technologies Unlock the Amin Tight GasFormation

136 Intelligent-Well Completion in the Troll Field Enables Feed-Through Zonal Isolation

140 Evaluation of Established Cleanup Models in Dynamic UnderbalancedPerforating

146 Drilling Management and AutomationJ.C. Cunha, SPE, Drilling Manager, Ecopetrol America

147 Design of an Automated Drilling-Prediction System

152 Management Strategies Optimize Drilling and Completion Operations

156 Integrated-Technology Approach Enables Successful Prospect Evaluations in Malaysia

160 Real-Time Analysis for Remote Operations Centers

ContentsSept13.indd 3 8/13/13 12:55 PM

SPE PublicationS: SPE is not responsible for any statement made or opinions expressed in its publications.

Editorial Policy: SPE encourages open and objective discussion of technical and professional subjects per-tinent to the interests of the Society in its publications. Society publications shall contain no judgmental remarks or opinions as to the technical competence, personal character, or motivations of any individual, company, or group. Any material which, in the publishers opinion, does not meet the standards for objectivity, pertinence, and professional tone will be returned to the contribu-tor with a request for revision before publication. SPE accepts advertising (print and electronic) for goods and services that, in the publishers judgment, address the technical or professional interests of its readers. SPE reserves the right to refuse to publish any advertising it considers to be unacceptable.

coPyright and uSE: SPE grants permission to make up to five copies of any article in this journal for personal use. This permission is in addition to copying rights grant-ed by law as fair use or library use. For copying beyond that or the above permission: (1) libraries and other users dealing with the Copyright Clearance Center (CCC) must pay a base fee of USD 5 per article plus USD 0.50 per page to CCC, 29 Congress St., Salem, Mass. 01970, USA (ISSN0149-2136) or (2) other wise, contact SPE Librarian at SPE Americas Office in Richardson, Texas, USA, or e-mail [email protected] to obtain permission to make more than five copies or for any other special use of copyrighted material in this journal. The above permis-sion notwithstanding, SPE does not waive its right as copyright holder under the US Copyright Act.

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JPT Online Is ChangingThe new JPT Web page is a one-stop place for SPE members to access print and digital editions. The JPT website is optimized for phones and tablets. The site contains:

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Access the new site at www.spe.org/jpt.

ContentsSept13.indd 5 8/12/13 12:47 PM

PERFORMANCE INDICES

66 JPT SEPTEMBER 2013

PERFORMANCE INDICES

wORlD CRuDE OIl PRODuCtION+

tHOuSAND BOPD

OPEC 2012 NOV DEC 2013 JAN FEB MAR APR

Algeria 1483 1485 1490 1490 1490 1510

Angola 1770 1790 1840 1790 1840 1855

Ecuador 504 503 505 506 504 516

Iran 3000 3100 3200 3200 3200 3200

Iraq 3225 3125 3075 3075 3075 3175

Kuwait* 2650 2650 2650 2650 2650 2650

libya 1450 1350 1350 1400 1350 1450

Nigeria 2280 2520 2460 2420 2445 2400

Qatar 1200 1200 1200 1200 1200 1200

Saudi Arabia* 9540 9240 9140 9140 9140 9440

uAE 2820 2820 2820 2820 2820 2820

Venezuela 2300 2300 2300 2300 2300 2300

TOTAL 32222 32083 32030 31991 32014 32516

tHOuSAND BOPD

NON-OPEC 2012 NOV DEC 2013 JAN FEB MAR APR

Argentina 533 546 534 534 536 592

Australia 379 371 282 309 328 341

Azerbaijan 866 916 910 903 892 886

Brazil 2045 2105 2054 2017 1853 1923

Canada 3281 3427 3327 3537 3637 3637

China 4232 4224 4168 4146 4164 4174

Colombia 970 984 1010 998 1013 1007

Denmark 202 200 187 197 193 183

Egypt 551 551 548 547 545 543

Eq. Guinea 297 297 282 282 282 282

Gabon 240 240 240 239 239 238

India 774 773 763 767 777 773

Indonesia 848 850 834 834 840 827

Kazakhstan 1564 1545 1564 1583 1588 1572

Malaysia 550 557 546 552 536 544

Mexico 2622 2606 2609 2602 2562 2564

Norway 1517 1558 1545 1502 1498 1567

Oman 947 950 939 944 934 910

Russia 10048 10018 9995 9990 9995 10002

Sudan 90 101 106 106 112 115

Syria 131 136 131 133 91 71

uK 864 923 913 826 1041 805

uSA 7052 7095 7047 7145 7177 7353

Vietnam 362 357 345 355 337 359

Yemen 162 169 162 162 140 119

Other 2444 2455 2434 2453 2451 2445

Total 43570 43953 43475 43663 43761 43833

Total World 75792 76036 75506 75654 75775 76349

Perf_Indices_Sept.indd 6 8/19/13 10:41 AM

PERFORMANCE INDICES


PERFORMANCE INDICES

HENRY HuB GulF COASt NAtuRAl GAS SPOt PRICE*

wORlD ROtARY RIG COuNt

REGION2013 JAN FEB MAR APR MAY JUN JUL

uS 1757 1762 1756 1755 1767 1761 1766

Canada 503 642 464 153 128 183 291

latin America 414 427 437 429 424 423 418

Europe 134 135 133 136 124 138 139

Middle East 379 350 336 354 362 389 379

Africa 115 113 115 125 124 133 128

Asia Pacific 237 250 247 257 249 250 241

TOTAL 3539 3679 3488 3209 3178 3277 3362

wORlD CRuDE OIl PRICES (uSD/bbl)

102.62 87.90 113.36 94.13 112.86 94.51 111.71 89.49

2012 JUL AUG SEP OCT

109.06 86.53 109.49 87.86 112.96 94.76 116.02 95.31

NOV DEC 2013 JAN FEB

108.47 92.94 102.25 92.02 102.56 94.51 102.92 95.77

MAR APR MAY JUN

Brent WTI

wORlD OIl SuPPlY AND DEMAND1

MIllION BOPD 2012 2013

Quarter 3rd 4th 1st 2nd

SUPPLY 89.03 89.33 88.60 89.79

DEMAND 89.27 89.82 89.15 89.54

INDICES KEY + Figures do not include NGLs and oil from nonconventional sources. * Includes approximately one-half of Neutral Zone production.

1 Includes crude oil, lease condensates, natural gas plant liquids, other hydrocarbons for refinery feedstocks, refinery gains, alcohol, and liquids produced from nonconventional sources.

Source: Baker Hughes. * The US Dept. of Energy/Energy Information Administration discontinued its reporting of US Natural Gas Wellhead

Prices, replacing them with Henry Hub Gulf Coast Natural Gas Spot Prices.

Source: US Dept. of Energy/Energy Information Admin.

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Perf_Indices_Sept.indd 8 8/19/13 10:41 AM

REGIONAL UPDATE


AFRICA

A discovery was made at the Ogo-1 well offshore Nigeria. The well reached a total depth of 3206 m and encountered a gross hydrocarbon section of 524 ft with 216 ft of net stacked pay. Optimum Petroleum Development (60%) is the operator in partnership with Afren (22.86%) and Lekoil(17.14%).

ASIA

Drilling has begun on the Lukut Updip-1exploratory well on Brunei Block L in Brunei. It has a planned true vertical depth of 2431 m targeting deltaic and baseslope sand deposits of Middle Miocene age. AEDSoutheast Asia (50%) is the operator in partnership with Kulczyk Oil Brunei (40%) and a private Brunei company (10%).

Salamander Energy has begun its multi-well exploration program in Block G4/50 off the Gulf of Thailand. The group plans to drill six exploration wells this year followed by further exploration drilling next year. The block covers 2,239 sq miles and contains five sub-basins. Salamander holds a 100% operating interest.

Gas condensate was discovered from a deep reservoir at the Adam X-1 exploration well in Block 2568-13 in the Hala field in Pakistan. During testing, the well flowed at 14.3 MMcf/D of gas and 125BOPD (condensate) at a 40/64-in. choke. Pakistan Petroleum (65%) is the operatorin partnership with Mari Petroleum (35%).

Production has begun on the offshore Wenchang 8-3E oil field in China. The field is located in the western Pearl River Mouth basin in China and has an average water depth of approximately 110 m to 120 m. China National Offshore Oil Corporation is the operator with a 100% interest.

The Tayum-1 exploration well encountered approximately 49 vertical ft of net gas pay from multiple sandstone intervals within the Miocene and Pliocene section. The well is located in the Kutai production sharing contract offshore Kalimantan in Indonesia. KrisEnergy (54.6%) is the operator in partnership with

Salamander Energy (23.4%) and Orchid Kutai (22%).

Oil was discovered at the Parit Minyak-2 exploration well located onshore north Sumatra in Indonesia. The well was drilled to a total depth of 2812 m, during which several oil shows were noted within the Eocene/Oligocene Pematang group. From the interval of 2480 m to 2539 m, the well flowed 37 API oil at a rate of 200 to 400 B/D with no water. Pacific Oil & Gas (Kisaran) (55%) is the operator in partnership with Pacific Oil & Gas (Sumatera) (22.5%) and New Zealand Oil &Gas (22.5%).

AUSTRALIA

Drilling began on Hooper-1, an exploration well in PEL 92, in the Cooper basin in South Australia. The well will be drilled on a 3D seismic defined anticline in the northwest section of PEL 92 and has a planned total depth of 1820 m, targeting Namur Sandstone. Beach Energy (75%) is the operator in partnership with Cooper Energy (25%).

EUROPE

The Norvarg appraisal well confirmed the presence of hydrocarbons in the Kobbe formation in production license 535 in the Norwegian sector of the Barents Sea. Drillstem tests to assess the quality of the reservoir and the volume potential in the northeastern part of the Norvarg closure will be performed. Total (40%) is the operator in partnership with Det norske (20%), North Energy (20%), Valiant Petroleum (13%), and Rocksource (7%).

Seismic data acquisition has begun in the Fedynsky and Central Barents license areas in the ice-free part of the Russian sector of the Barents Sea. The 2D survey is planned to take place over 6,100 miles. Rosneft holds 66.67% of the joint venture, while Eni holds the remainder (33.33%).

Drilling began on the 16/2-18S exploratory well in production license 265 in the North Sea. Located in the Cliffhanger North prospect, the well has a planned total depth of 1970 m and will test the presence of the Jurassic reservoir and the quality of fractured and weathered

basement. Statoil Petroleum (40%) is the operator in partnership with Petoro (30%), Det norske oljeselskap (20%), and Lundin Norway(10%).

MIDDLE EAST

Gulf Keystone has commenced its development drilling program with the spudding of the Shaikan-10 development well in Iraq. The well is a modular design with a production capacity of 20,000BOPD. It will be followed by a minimum three-rig development and production drilling program, which will begin early next year.

NORTH AMERICA

Drilling has begun on the East Lusk 15 Federal #3 horizontal well in Lea County in New Mexico. The planned depth is 2896m vertically and 1219 m to 1524 m laterally. FieldPoint Petroleum (43.75%) is the operator in partnership with Cimarex (37.5%) and other unnamed partners(18.75%).

The Vicksburg deepwater well in the Gulf of Mexico encountered more than 500 ft of net oil pay after being drilled to a depth of 8042 m. Located in the DeSoto Canyon Block 393, the Vicksburg A discovery is estimated to contain recoverable resources of more than 100million BOE. Royal Dutch Shell (75%) is the operator in partnership with Nexen(25%).

Drilling has begun on the Stalder Pad site located in eastern Monroe County in Ohio. The pad has been designed and permitted to drill up to 18 wells (10 Marcellus and 8 Utica). Triad Hunter (50%) is the operator in partnership with Magnum Hunter Resources (50%).

SOUTH AMERICA

Oil and gas reserves were discovered at the Chercn 1 well located on the Flamenco block in Chile. The well was drilled to a total depth of 2066 m and flowed at a rate of approximately 4 MMcf/D of gas and 35 BOPD through a choke of 8 mm. GeoPark Holdings (50%) is the operator in partnership with Empresa Nacional de Petroleo de Chile.JPT

RegionalUpdateSept.indd 10 8/13/13 12:59 PM

COMPANY NEWS


MERGERS AND ACQUISITIONS

Chesapeake Energy will sell its assets in the northern Eagle Ford Shale and Haynesville Shale to EXCO Operating, a subsidiary of EXCO Resources, for USD 1billion. The acquisition covers approximately 55,000 net acres from Zavala, Dimmit, La Salle, and Frio counties in Texas, which includes 120 producingwells.

GE Oil & Gas bought Lufkin Industries for approximately USD 3.3 billion. Lufkin has more than 110 service centers and nine manufacturing facilities for artificial lift equipment globally.

Chesapeake Energy sold a 50% undivided interest in approximately 850,000 acres in northern Oklahoma for USD 1.02 billion to Sinopec International Petroleum Exploration and Production. Assets associated with the transaction produced approximately 9,600 B/D of liquids and 54 MMcf/D of natural gas during the first quarter of the year.

Schlumberger bought Gushor, a Canadian-based petroleum geochemistry and fluid analysis company that provides production and exploration solutions for heavy oil and oil sands.

Xodus Group bought Dubai-based Prime Energy as part of its major expansion drive in the Middle East. Prime Energys team will form part of Xodus subsidiary based in Dubai, which will be renamed Xodus-Prime DMCC.

Petronas Carigali incorporated a new wholly owned subsidiary, Vestigo Petroleum, to focus on development andproduction activities from small, marginal, and mature fields in Malaysia and abroad.

Vietnam and China have extended an agreement to jointly explore for oil and gas in the Gulf of Tonkin until 2016. The new agreement expands the area covered from 1541 km2 to 4076km2 under the initial arrangement. The operational responsibilities and costs will be split evenly. The joint exploration is led by Petrovietnam and China National Offshore Oil Corporation.

Cameron and Schlumberger received all required regulatory approvals for their joint venture, OneSubsea, which will manufacture and develop products, systems, and services for the subsea oil and gas market. Cameron will hold a 60% interest and Schlumberger the remaining40%.

Cimarex Energy and Chevron will jointly develop Cimarexs combined Permian Basin acreage in Texas spanning 104,000 acres. Chevron will pay USD60million to secure a 50% stake in the Cimarex-built Triple Crown gas gathering and processing system and wells drilled on the acreage.

Costain acquired EPC Offshore, resulting in the launch of Costain Upstream, a new divisional operation. The new company will have more than 350 employees and will provide services across the life cycle of upstream offshore oil and gas assets.

ALS Global acquired Reservoir Group for USD 533 million. The transaction includes operational infrastructure in approximately 40 sites globally and 900employees.

COMPANY MOVES

Schlumberger announced the official opening of its Schlumberger Reservoir Laboratory in Chengdu, China. The 32,000ft2 facility offers an integrated suite of petrophysical and geomechanical services to help customers improve hydrocarbon recovery and maximize production throughout the life of theirreservoirs.

Petronas announced it has begun construction on its first floating liquefied natural gas (LNG) facility in Malaysia in June. The facility will be located in the Kanowit gas field in Block SK306, which is 112 miles offshore Sarawak and will have the capacity to produce 1.2MTPA of LNG.

CONTRACTS

ExxonMobil awarded two contracts for work in its Julia field development in the US Gulf of Mexico (GOM) Walker Ridge block. Oceaneering International will supply 14 miles of electro-hydraulic, steel

tube umbilicals for hydraulic control fluids, chemicals, and electrical power signals in early 2015 to operate and monitor the subsea wells and manifold. A subsidiary of McDermott International will carry out an engineering, procurement, and construction contract including six subsea wells, one six-slot manifold, two umbilicals, six jumpers, two flowlines with two steel catenary risers, two subsea pump modules, and topsides support equipment beginning in the second quarter of 2015.

Nido Petroleum Philippines, a wholly owned subsidiary of Nido Petroleum, was awarded a 12-month extension of Sub-Phase 6 of Service Contract 54A by the Philippine Department of Energy. The contract will allow the SC 54A joint venture time to complete engineering and field development studies offshore west Philippines before making a decision to enter Sub-Phase 7.

2H Offshore, an Acteon company, was awarded a contract by Total for the delivery management of the tension leg platform top tensioned riser (TTR) systems for its Moho Nord field development offshore Congo. The company will be responsible for the riser delivery management, including design finalization, procurement management, and inspection services for 17 production and water injection TTRs and one high-pressure drilling riser.

Aker Solutions won a contract from Daewoo Shipbuilding and Marine Engineering (DSME) to supply a drilling equipment package a production platform at the Mariner field in the North Sea. The contract includes a complete topside equipment package and support services to DSMEs shipyard in South Korea. Delivery of the contract is expected to be completed in 2015.

Wison Offshore & Marine, a subsidiary of the Wison Group, was awarded a contract from China Oilfield Services to supply one 3,000 hp modular drilling rig for use on the Tsimin field in the GOM. Wison will perform the project management, procurement, production engineering, fabrication, load out, offshore installation, and commissioning of the modular drilling rig. JPT

CompanyNewsSept.indd 12 8/12/13 3:29 PM

COMMENTS


Looking Ahead John Donnelly, JPT Editor

Initial forecasts for 2014 predict continued growth in global oil supply, relatively moderate demand, and a potential soften-ing of oil prices. International events could change that picture overnight but, for now, the industrys three leading forecast-ersthe International Energy Agency (IEA), the US Energy Information Administration (EIA), and OPECare in agree-ment about what to expect next year.

The boom in oil productionprimarily from North American unconvention-alsshould lead to another year of global surplus, with supply outstripping world demand. Global demand will actually rise next year, but at a lesser rate than non-OPEC oil supply. In addition to the US, supplies are expected to increase from Canada, Brazil, and Kazakhstan. ExxonMobils Kearl project will boost Canadian output, while the startup of the Kashagan project in the Caspian Sea should add 250,000BOPD in production in Kazakhstan.

The IEA believes that non-OPEC output will rise by 1.3 million BOPD next year, annual growth that has occurred only once in the past 20 years. The largest increase will come from the US, with that countrys production rising 500,000 BOPD. In July, US crude production increased to 7.5 million BOPD, the highest monthly level of pro-duction since 1991. The EIA forecasts that US total crude oil production will average 7.4 million BOPD this year and 8.2 million BOPD in 2014.

Total global demand is forecast to rise 1.3 million BOPD next year, to more than 90 million BOPD, according to the IEA, with OPEC slightly less optimistic with a fore-cast of a 1 million BOPD rise. Global oil demand has grown approximately 7 million BOPD since 2005. OPEC member countries will meet in December to formalize strat-egy for 2014.

Meanwhile, OPEC is coming to grips with the US shale boom. At its meeting in July, OPEC ministers conceded that the world will need less of its crude even though world demand will grow at its healthiest pace since 2010. The organiza-tion said that demand for OPEC crude will fall by 300,000 BOPD to 29.6 million BOPD. Production from OPEC leader Saudi Arabia is healthy, as output has grown to historic levels.

Differences exist among these three major forecasts. The EIA is more optimis-tic about global demand and supply growth while OPEC is the most pessimistic. All three forecasters predict that OECD demand will decline, although at a slower rate, while non-OECD demand growth will continue to increase. China is something of a wild card. The EIA predicts a slight rise in Chinese demand growth next year to 389,000BOPD from 360,000 BOPD this year. But OPEC sees that demand growth relatively flat. JPT

EDITORIAL COMMITTEESyed AliChairperson, Technical Advisor,

SchlumbergerFrancisco J. Alhanati, Director, Exploration &

Production, C-FER TechnologiesMohammed Azeemuddin, Geomechanics and Pore

Pressure Team Lead, ChevronBaojun Bai, Associate Professor/Graduate Coordinate Petroleum Engineering, Missouri University of Science

and TechnologyIan G. Ball, Technical Director, Intecsea (UK)

Luciane Bonet, Reservoir Engineering Manager, Petrobras America

Paul D. Cameron, Senior Well Intervention Discipline Advisor, BP plc

Robert B. Carpenter, Sr. AdvisorCementing, Chevron

Simon Chipperfield, Team Leader Central Gas Team/Gas Exploitation, Eastern Australia Development,

Santos Gerald R. Coulter, President, Coulter Energy International

Martin V. Crick, Chief Petroleum Engineer, Tullow Oil plc

Jose C. Cunha, Drilling Manager, Ecopetrol America.Alexandre Emerick, Reservoir Engineer,

Petrobras Research CenterMartyn J. Fear, General Manager Drilling &

Completions,Husky EnergyNiall Fleming, Leading Advisor Well Productivity &

Stimulation, StatoilEmmanuel Garland, Special Advisor to the

HSE Vice President, TotalA.G. Guzman-Garcia, Engineer Advisor,

ExxonMobilRobert Harrison, Global Technical Head of Reservoir

Engineering, Senergy Oil & GasDelores J. Hinkle, Director, Corporate Reserves,

MarathonGeorge W. Hobbs, Director, Strategic ChemistryJohn Hudson, Senior Production Engineer, ShellGerd Kleemeyer, Head Integrated Geophysical

Services, Shell Global Solutions International BV Gregory Kubala, Global Chemistry Metier Manager,

Schlumberger Jesse C. Lee, Chemistry Technology Manager,

SchlumbergerCam Matthews, Director, New Technology Ventures,

C-FER TechnologiesCasey McDonough, Drilling Engineer,

Chesapeake EnergyStephane Menand, Managing Director,

DrillScan USJohn Misselbrook, Senior Advisor for Coiled Tubing,

Baker HughesBadrul H Mohamed Jan, Lecturer/Researcher,

University of MalayaAlvaro F. Negrao, Senior Drilling Advisor,

Woodside Energy (USA)Shauna G. Noonan, Staff Production Engineer,

ConocoPhillipsKaren E. Olson, Completion Expert,

Southwestern EnergyMichael L. Payne, Senior Advisor, BP plc

Mauricio P. Rebelo, Technical Services Manager, Petrobras America

John D. Rogers, Vice President of Operations, Fusion Petroleum TechnologiesJon Ruszka, Drilling Manager, Baker Hughes (Africa Region)

Hisham N. Saadawi, VP Engineering, ADCO (Abu Dhabi Co. Onshore Oil Opn.)

Jacques B. Salies, Drilling Manager, Queiroz Galvo E&P

Helio M. Santos, President, SafekickOtto L. Santos, Snior Consultor, Petrobras

Luigi A Saputelli, Senior Production Modeling Advisor, Hess Corporation

Brian Skeels, Emerging Technologies Manager, FMC Technologies

Sally A. Thomas, Principal Engineer, Production Technology, ConocoPhillips

Win Thornton Global Projects Organization, BP plc

Erik Vikane Manager Petroleum Technology, StatoilScott Wilson, Senior Vice President,

Ryder Scott CompanyTo contact JPTs editor, email [email protected].

CommentsSept.indd 14 8/12/13 2:45 PM


GUEST EDITORIAL

Bob Keiller became chief executive officer (CEO) of the John Wood Group in November 2012. Previously, he was CEO of Wood

Group PSN and CEO of Production Services Network before its acquisition by Wood Group. He has also served as chairman of the Offshore Contractors Association, the UK Helicopter Issues Task Group, the Entrepreneurial Exchange, and cochair of Oil and Gas UK. Awarded the Aberdeen Entrepreneur of the Year in 2006 and 2008, he was also named Scottish Businessman of the Year in 2007 and Grampian Industrialist of the Year in 2008. Keiller received a master of engineering degree from Heriot-Watt University and is a chartered engineer.

Most people who work in the oil and gas industry know what a permit to work is. A blue permit indicates that it covers cold workwork with no potential to create a naked flame, hot surface, spark, or explosion. Having a permit ensures that the job site is safe for the team to do its work, that the team understands the potential risks of the work it is planning to do, and that it agrees to put suitable controls in place.

I spoke recently at the Piper 25 Conference, a 3-day event held in Aberdeen to mark the 25th anniversary of the Piper Alpha disaster that killed 167 people on board the oil platform in the North Sea. On display at the conference was a copy of Cold Work Permit 23434. The tattered paper was found in the accommodation module that was recovered from the seabed. The permit was for the replacement of a relief valve on the B condensate pump. It was this work that was at the heart of the initial release and explosion when the operators tried to start the pump even though it was not ready. The rest, tragically, is history.

It begs an obvious question and a supplementary one: Could something similar happen again and, if so, can we do anything to reduce the chances of it happening?

The oil and gas industry has made huge advances in safety management over the past 25 years. The goal-setting regime, safety cases, and verification schemes have been hugely beneficial.

We have greater collaboration and everyone now talks about safety as being impor-tant and most people genuinely believe it. However, the industry is still experiencing too many serious events which, if we are unlucky, could easily result in anothertragedy.

We are a global industry in which good practices are shared across our opera-tions. The loss of life in any country has to be as unacceptable as a tragedy on our owndoorstep.

Over the past 25 years since Piper Alpha, there have been more than 25 multi-fatality accidents in our industry. In June, two people died in an accident on a gas platform in the Dutch sector of the North Sea. Last year, three died in an explosion in the Gulf of Mexico (GOM) and 11 died in the Deepwater Horizon explosion in the GOMin2010.

Can we do anything to make these situations less likely? Are we controlling the risks to our people in a joined-up way?

Recommendation 67 of Lord Cullens Report on the Piper Alpha disaster called on the industry to institute common systems for alarms and warning lights. Unfortu-nately, at the time, the industry could not reach this position voluntarily and legisla-tion was needed to create new regulations.

Surely that would not happen today because we have a unified approach with strong, clear leadership across the industry that understands the benefit of common systems and approaches and are not hung up on insisting that only their corporate systems will do. We are happy to agree on common standards for survival training, we have a common system for tracking people traveling offshore, and we have agreed on standards for use of personal locator beacons on helicopter flights.

These are all good. But we are not so good at agreeing to common standards in other areas, such as work control, isolation standards, risk assessment, and safety

Creating a Common Safety CultureBob Keiller, CEO, Wood Group

GuestEdSept.indd 16 8/12/13 3:30 PM

17JPT SEPTEMBER 2013

observation programs. We are good at creating guidelines, but are reluctant to make any hard-and-fast safety rules for the step change safety club because few clubs allow membership to choose which rules to follow.

Why not introduce a common per-mit to work? A common job safety assess-ment? Common observation programs? Common isolation standards? What a sig-nal it would send to the offshore work-force about our genuine commitment to their safety.

Who Gets the Learning?More contractor personnel get hurt off-shore than operator personnel because there are more of them and fewer work in offices or control rooms. So when an accident happens and a contract worker is injured, you might think that the con-tractor company has at least as much to learn as anyone else, yet often the com-pany does not hear about the accident straight away, is refused access to par-ticipate in the investigation, and does not see the findings unless the operator is faulting the contractor.

The right to be informed of any and all accidents, the right to participate in investigations, and the right to see all findings should be part of the industrys standard contracting terms. We all have a legal duty to take care of our employ-

ees and a legal obligation to cooperate in ensuring the safety of others affected by our activities. So it is not unreasonable to check the work site where our staff may be working, yet many operators take offense at being asked to demonstrate workplace safety.

Leadership Is the KeySo what can we do about this?

Although we can have better sys-tems, more competent people, higher standards, and better training, the key and common ingredient is leadership.

There are hundreds of books on leadership and a thousand different modelseach one has merits and many have evidence to support them. So if we cannot get a common idea of leadership, what is the chance of obtaining a com-mon idea of safety leadership?

Leadership shapes culture, culture shapes behavior, and poor behavior is the common factor that can undermine competent people, good design, and strongprocesses.

It comes down to three basic build-ing blocks.

Things you need to know. A safety lead-er needs to be informed about what is happening in the business, and be aware of any and all accidents and near miss-es. To know these things, you need to

ask and checkall the time. You need to know the bad news, the concerns, and the complaints and have a culture that does not filter these out.

You also need to know the risks faced by your people, as well as contrac-tors, subcontractors, vendors, and other specialists. You need to know that all of these people are competent. You need to know that risk controls are in place and are effective. And you also need to know that people will do the right thing in anemergency.

Things you need to say and not say. It is said that the primary role of leader-ship is about setting the tone. It is more than that; it is about repeatedly pro-viding clear and direct messages that reinforce a commitment to safety. Being clear is far from easymessages need to be repeated, received, credible, and not drowned out or undermined.

Things you need to do and not do. Actions need to match the good words. People see actionsoften they do not hear the words. If actions do not match the words, then credibility dis-appears in an instant. Safety leaders need to be aware that their actions, and sometimes their inactions, are visible and send a bigger message than all the wordscombined.JPT

GuestEdSept.indd 17 8/19/13 9:52 AM

TECHNOLOGY APPLICATIONS


Electrical Wellhead OutletAnTech Limited unveiled its new TypeC, the smallest model in the companys extensive range of wellhead outlets that continuously monitor downhole pres-sure and temperature in permanent completions (Fig. 1). The Type C uses a threaded wellhead connection in link-ing the downhole cable to the surface telemetry system and is attached to

the wellhead to provide a safe connec-tion between the cables and seal against downhole pressure. The configuration ensures that the integrity of the well-head is maintained and electrical con-nections are secure, even if the down-hole cable is flooded. The Type C uses pressure-testable cablehead technolo-gy that requires few connections to be made up. The Type C is certified for use in hazardous areas, meets with corro-sion standards, and has been success-fully pressure-tested in keeping with American Petroleum Institute require-ments. It operates to 15,000 psi and in temperatures as high as 160C. The Type C is available in models that are compatible with single, dual, and tri-ple conductors, and can be supplied in -in.configurations. For additional information, visit

www.antech.co.uk/antech/product-list/wellhead-outlets.

Drilling-Fluid SystemBaker Hughes has announced the availability of its MPRESS drilling- fluid system, which can improve drill-ing economics by enabling operators to manage circulating pressure more efficiently (Fig. 2). The system allows operators to reduce their standpipe pressure and apply more horsepower to the bottomhole assembly and drill bit, thereby increasing rates of pene-tration and decreasing nonproductive time. MPRESS also reduces viscosity in the drillstring while optimizing viscos-ity in the annulus for more efficient cut-tings transport. The pressure saved in the drillstring can be used to increase flow rate, provide more power to motors and bits, and save wear and tear on sur-face equipment. The system features elevated ultralow-shear-rate viscosity and a shear-thinning rheological profile with a rapid-set/easy-break gel struc-

Chris Carpenter, JPT Technology Editor

Fig. 2The MPRESS drilling-fluid system from Baker Hughes.

Fig. 1AnTechs Type C wellhead outlet.

TechAppsSept.indd 18 8/12/13 1:29 PM



ture that minimizes the cuttings in the vertical section of the wellbore settling into the curve during connections and trips. Both the elevated viscosity and the rapid-set gels help keep the well-

bore clean and minimize torque and drag associated with cuttings beds in the lateralsection. For additional information, visit

www.bakerhughes.com.

Silica TechnologyProduced Water Absorbents (PWA) has commercially launched its Osorb media technology, an organically modified sili-ca for the treatment of oilfield water and gas streams (Fig. 3). The silica medium is hydrophobic and does not absorb water, but can remove more than 99% of free, dispersed, and soluble hydrocarbons and toxic contaminants from water and gas streams. The technology is applied in both onshore and offshore applications for the purposes of discharge, chemical enhanced oil recovery, reinjection, ben-eficial reuse, prevention of membrane fouling, air-emission controls, and off-shore excursions. No permanent chemi-cal bonds are formed between the medi-um and the contaminants during these processes because the medium is both an adsorbent and an absorbent. This lack of permanent bonding enables the repeat-ed regeneration and reuse of the media while also recovering the captured con-taminants. Regeneration can be achieved by use of various processes that typical-ly maximize resources available on site, such as gaseous purge. For additional information, visit

www.pwasystems.com.

Pressure SensorsHoneywell Sensing and Control has introduced two new additions to its Wing Union/Hammer Union line of pres-sure sensors, with potential applications in oil and gas drilling, mud pumps and mud logging, fracturing and cement-ing, acidizing, wellhead measurement, and standpipe stimulation. Model 425 is available in two accuracy levels, while the Model 427 provides a wide and shallow sensing port that facilitates an effective flow of more viscous media blends. Built on the Wing Union one-piece design with stainless-steel construction (Fig. 4), both models provide accurate and reli-able data for detection of small chang-es in pressure, allowing the operator to quickly adjust media flow pressure dur-ing drilling operations. This helps drill-ing operators optimize oil-withdrawal rates and profile potentially dangerous conditions to increase safety of drilling Fig. 4The Model 425 and 427 pressure sensors from Honeywell.

Fig. 3PWAs Osorb silica floating in a flask after absorbing more than 99% of all dispersed oil in a produced-water sample.




personnel. Both models offer multiple electrical connections and are designed for quick field installation, offering resistance to torque stress at hammer-up with field-adjustable zero and span for reliable long-term performance. For additional information, visit

https://measurementsensors. honeywell.com.

Platform Supply VesselThe first of six Damen 3300 platform supply vessels (PSVs), the World Dia-mond, has been delivered to Norwe-gian offshore support company World Wide Supply (WWS). The 400-t-deck- capacity PSV 3300 is the result of exten-sive design work in close cooperation with the client and full tank testing

(Fig.5). The World Diamond will be the first PSV in the new series to be deliv-ered to launching customer WWS (Nor-way). Damens current Offshore Series includes PSVs ranging from 1500 to 6500 deadweight tonnage; Fast Crew Suppliers from 19 to 67 m in length, fea-turing the slamming-reducing Sea Axe bow; Anchor-Handling Tug Suppliers with 75 to 200 t of bollard pull; the Offshore Heavy-Lift Vessel 1800; the Ro-Ro Deep Dredge; various standby and multipurpose support vessels; and the new Damen Offshore Carrier 7500, featuring a 2300-m2 deck area. For additional information, visit

www.damen.com.

Telescopic GangwayOffshore Solutions BV has released its Offshore Access System, a 21-m, hydraulically operated telescopic gang - way fitted with an active heave- compensation system (Fig. 6). It is the only heave-compensated gangway sys-tem that can maintain a permanent con-nection. The gangway comprises a ped-estal, operator cabin, telescopic boom, and gripper platform. With continu-

Fig. 5The World Diamond PSV 3300 from Damens Offshore Series of vessels.

Fig. 6The Offshore Access System telescopic gangway from Offshore Solutions BV.

TechAppsSept.indd 22 8/14/13 7:18 AM


ous 24-hour connection and operating capability, it incorporates a motion- reference unit in its active hydraulic sys-tem, which, when engaged, maintains the walkway tip at a constant height relative to the horizon. This allows the gangway to be connected safely to a fixed offshore installation in unstable sea conditions when mounted onboard a suitable vessel. Once connected, the heave compensation is disengaged and the gangway is allowed to float between the vessel and the installation. The walk-way is robustly connected and automati-cally compensates for the six movement planes of the vessel motion. For additional information, visit

www.offshore-solutions.nl/en/.

Logging-While-Drilling ServiceHalliburton has introduced its XBAT azimuthal sonic and ultrasonic logging-while-drilling (LWD) service (Fig. 7). The XBAT LWD service delivers accu-rate acoustic measurements in a wide range of formations through sensors and electronics that are less sensitive to drilling noise and have a wide frequency response. The result is a greater signal/noise ratio that enables better measure-ments even in noisy drilling environ-ments and poor hole conditions. The XBAT LWD service has delivered accu-rate measurements in formations across

the globe and has been tested extensive-ly in the challenging environments of the North Sea and the Gulf of Mexico. The XBAT LWD service uses four dis-crete transmitters and four azimuthal-ly spaced receiver arrays. Each receiver is sensitive across a broad range of fre-quencies and is isolated from the col-lar to eliminate bit and mud-circulation noise. Using results from a broad range of frequencies, the XBAT LWD service provides a 3D image of the velocities around the wellbore. For additional information, visit

www.halliburton.com.

Swellable ElastomerTAM International has launched a new line of FastSwell elastomers (Fig. 8). The elastomers provide a fast, con-trolled swell time at lower temperatures and high salinities. The FastSwell prod-uct line was developed specifically for current challenging water-swell condi-tions in the Permian Basin and Rus-sian fracture markets, but both water-swell and oil-swell elastomers are now available worldwide. The elastomers perform well for fracture applications between 80 and 120F. The technolo-gy reduces production delays for well operators working in low bottomhole temperatures because it allows hydrau-lic-fracturing operations and comple-

tion activities to commence more quick-ly. FastSwell does not rely on protective coatings to prevent premature swell-ing during the trip in the hole; reliable prediction of swell times is designed into the numerous compounds devel-oped specifically for various global well-environment applications. For additional information, visit

www.tamintl.com.

Metal-Capturing Tool for WellboresThe 5D Oilfield Magnetics Open Hole Net (OHN) catches metal dropped into wellbores (wrenches, chain, shackles, bolts, nuts, washers, tong dies, and hand tools). The OHN also catches metal coming out of the wellbore and allows captured materials to be retrieved or measured (Fig. 9). The OHN is a system of specially designed magnets that take the place of the bell nipple when the dis-charge is built into the unit. The system is designed to take the magnetic field out of the internal diameter of the OHN when operations that could be affected by a strong magnetic field, such as mea-surement-while-drilling, LWD, or wire-line logging tools, are executed in a well program. The OHN is installed by the rig crew, and no power source or operator is required. JPT For additional information, visit

www.5doilfieldmagnetics.com.

Fig. 8The FastSwell elastomer from TAM International.Fig. 95D Oilfield Magnetics Open Hole Net metal-capturing device.

Fig. 7Halliburtons XBAT LWD service.


TECHNOLOGY UPDATE


The growing desire of offshore operators to speed up subsea field development while reducing costs has fostered many compelling innovations. Among those systems under development to meet this demand, and one with broad applica-tions, is a subsea storage unit (SSU) creat-ed by Kongsberg Oil & Gas Technologies.

The SSU employs the new concept of a flexible bag protected by a dome for oil storage on the seafloor (Fig. 1). Depending on field conditions, the dome can be made of concrete, fiberglass, or steel. The system offers oil compa-nies a safer, more cost-effective method of developing subsea fields in extreme weather zones or in the Arctic where ice floes are prevalent. The SSU is also being qualified for extended well testing (Fig. 2) and early production startup, and it may enhance the economics of fields with insufficient reserves to support full

field development. Furthermore, the SSU could be used in place of subsea storage cells, fixed platforms, floating storage units (FSUs), and pipelines.

It is an alternative to existing stor-age facilities and could also potentially commercialize the development of mar-ginal fields, said Astrid Russ Kristof-fersen, a subsea systems product and technology manager at Kongsberg. The [SSU] will increase profitability of mar-ginal fields, because the oil can be stored subsea. And then, using small shuttle tankers for more frequent offloading will precipitate the cash flow and reduce operational costs.

Ideally, two or more SSUs could be used to maximize the allowable output volume that could be uploaded into a tanker. As production increases, SSUs could be added to the cluster. Kongsberg is considering standardizing the dimen-

sions of the SSU to fit different needs, with the largest version on the drawing board being 131 ft (40 m) in diameter with a capacity of 120,000 bbl of oil.

Subsea storage technology has been used before in limited applications, but never has the design used a collapsible bag to store the oil. The bag is partly made of a polyester woven yarn that is coated with an impermeable layer on both sides to eliminate the possibility of seawater and oil mixing. Were that to happen, an emulsion layer could form, leading to bacterial growth that could cause corrosive damage inside steel pipe-lines and valves.

Subsea Storage Unit OperationOpenings at the base of the SSU allow seawater to flow in and equalize the pressure. So there is no need to design against pressure and the unit can be

Storing Oil on the Sea Bottom to Improve the Bottom LineTrent Jacobs, JPT Technology Writer

Fig. 1The technology being developed by Kongsberg uses a subsea storage unit with a flexible bag inside a protective dome to store oil on the seabed at any depth.

Fig. 2A computer rendering shows how three subsea storage units could store oil during an extended well test involving a jackup rig and shuttletanker.

TechUpdateSept_Art1.indd 24 8/12/13 1:03 PM

TECHNOLOGY UPDATE


deployed to any water depth. The bag can then expand and contract as the vol-ume of oil inside increases and decreas-es. Depending on the type of soil, a com-bination of weights, suction anchors, and piles could be used to secure the SSU to the seabed.

The SSUs intake valves allow the product to flow inside, and once the bag is filled to capacity, the oil can be trans-ported to a tanker through a standard flowline and offloading system. If an operator wishes to use the SSU for chem-ical storage, the unit would work in the same fashion. Only the source of fluids entering the SSU and the final export flow destination would differ.

If the internal sensors detect a leak inside the bag, they will shut off the intake valves while alerting the opera-tor to the problem. The SSUs design cre-ates a double barrier that protects the environment from exposure to hydrocar-bons. In case the bag should rupture, the outer dome is capable of collecting all the source fluids, preventing spillage into the sea, Kristoffersen said.

With the dome serving as the sec-ond containment layer, the leaked oil can be safely extracted to a sister SSU or discharged to a shuttle tanker on the surface. A removable hatch atop the SSU provides access to the bag and allows easy retraction when replacing the bag.

The SSUs weight will depend on field conditions and hydrostatic uplift forces from the stored oil and other flu-ids. In its base configuration, the SSU is designed to float so that a wide vari-

ety of vessels can perform the instal-lation work, which eliminates the need for heavy lift vessels.

Expected Service LifeThe dome and shell of the SSU will typi-cally have a service life of 25 years and the bag is being qualified for a life span of 10 years. Kongsberg is looking for ways to extend the bags life.

The inspiration for the SSU arose from Statoils quest to eliminate the need for surface production systems and put the entire factory floor directly on the seabed. This is one piece of that puzzle, said Kristoffersen, who added that the SSU also provides a measure of safety for operators who are aggressively seeking new ways to eliminate hazards.

Currently a lot of oil is stored on FSUs and [floating production, storage, and offloading units], and there is always the risk of collisions with a tandem-load-ing shuttle tanker. So by storing it subsea, you eliminate that risk, he said.

During a fire or an onboard explo-sion, the oil stored in the SSU will not continue to feed the fire. Additionally, if an operator uses several SSUs instead of a floating or fixed storage facility, operat-ing costs will be greatly reduced because subsea storage removes the need for a manned crew or helicopters and boats that provide supplies and transport. Instead, the SSU can be integrated into a remotely controlled subsea production system or a topside production facility that removes the water and gas before transferring the raw crude into the stor-age unit.

System FlexibilityThe flexibility to suit the operators field needs is another advantage of the SSU over traditional storage systems because each SSU can be picked up from the sea-floor and be redeployed to another field.

If used for extended well testing, the SSU provides another economic incen-tive by allowing the operator to collect first oil rather than burning off the product. Compared with traditional sur-face storage, the SSU in operation has a considerably lower environmental foot-print because the system requires no rou-tine vessel or aircraft support that would emit greenhouse gases.

The SSU technology is being devel-oped for use in the North Sea and is supported by Norwegian oil com panies Statoil, Lundin Petroleum, and Det Norske Oljeselskap, and by the Norwe-gian Research Council. Kongsberg will start laboratory tests in 2014 after which the company plans to begin a pilot pro-gram that would include the subsea installation of a full-scale SSU.

The SSU is being designed to meet the requirements of Norways offshore regulations and is to be qualified for the North Sea. However, Kristoffersen said, The SSU is providing a global solution for storing stabilized oil on the seabed.

Because the SSU is a new design, Kongsberg is offering studies to show the feasibility and concept of subsea stor-age for specific fields, including the stud-ies of risers, subsea manifold systems, interconnecting pipes, and the control system logic required for SSU operation and process integration with specific off-shoreinfrastructure. JPT

TechUpdateSept_Art1.indd 26 8/19/13 10:46 AM

TECHNOLOGY UPDATE


Underreamed wells are among the tough-est challenges to using a centralizer, a device that keeps the casing or liner in the center of a wellbore. Underreaming, the technique of enlarging of a wellbore beyond its originally drilled size, is a drilling method widely used to increase the openhole size, which may be required for various reasons.

Some well planners believe it is saf-est to drill unknown shallow formations with a small diameter bit and enlarge the pilot hole if no gas is encountered. Underreaming may also be performed if a small additional amount of annular space is desired, for example, if a liner must be run to protect against surge pressures.

A fundamental problem with under-reamed wells is achieving effective casing

centralization in the underreamed sec-tion. The job of the centralizer is to center the casing to improve run in hole (RIH), allow easier pipe rotation, and to enable the cement column to circulate freely around the tubular and produce a robust cement seal to ensure zonalisolation.

Mud displacement is vital to achiev-ing a good cement bond. The more cen-tral the pipe, the more efficient the mud displacement will be. In deviated and horizontal wells, if the tubular is not cen-tralized, it will lie along the low side of the borehole and make cement circula-tion and the achievement of a uniform cement sheath difficult.

Poor centralization can also impair the cement bond by causing channeling, which can lead to various live annulus

problems. Like any fluid, cement will take the easiest route in the annulus, and this can result in an inadequate seal if the cas-ing or liner is not centralized. In addition, if the annular clearance is restricted in some sections, backpressure may result that requires a much reduced flow rate during cementation to avoid fracturing the formation and thereby losing fluid.

Offset Bow CentralizerThe Uros offset bow centralizer devel-oped by Centek is designed for use in underreamed or washed-out well sec-tions. The device significantly reduces initial insertion forces and drag when running through previously set casing. Once through this compressed stage, the offset bow centralizer will revert to its designed outer diameter in the open hole and thus maximize standoff without addi-tional drag. The device achieves a reduc-tion in drag compared with other central-izers because of its patented bow design, in which the high points of the bows are offset alternately without reducing the strength of the unit or its capacity to cen-tralize the casing in the open hole.

An oilfield service and product sup-plier operating offshore Norway has specified the use of the offset bow cen-tralizer in underreamed and deviat-ed wells since August 2011. Even when using two centralizers per pipe joint, the company has consistently been able to reach target depth while maintaining the desired standoff in the open hole. The company is running the device in several fields and has expanded its use to normal wells, because of the fluid and cement displacement benefits that it allows.

Offset bow centralizers are increas-ingly used in Norwegian offshore well

Offset Bow Centralizers MeetUnderreamed Well Challenges Marius Boncutiu, SPE, and Richard Berry, SPE, Centek Group

Fig. 1Undamaged centralizers were pulled twice from a well at 40 m above total depth and then run successfully for a third time to the target level.

TechUpdateSept_Art2.indd 28 8/12/13 1:05 PM


operations. These wells often have a high risk of washed-out sections, i.e., open-hole sections that are larger than the original hole size, which are generally caused by soft or unconsolidated forma-tions. However, even in gauge holes, off-set bow centralizers are used to ensure high standoff.

Case StudiesA well operator offshore Norway ran 7-in.9-in. offset bow centralizers through 9-in. 53.5-lbm/ft casing into an 8-in. open hole with a total depth of 3600 m. Twice the operation reached a depth of 3560 m before it was necessary to pull the liner. Both times the liner was partially rotated in the open hole on the way in and was rotated for about 12 hours at 20 rev/min in the cased hole on the way out. The centralizers also had to be run through a whipstock window.

Each time after pulling the liner, the drilling and cement teams inspected all the centralizers and stop collars (Fig. 1). The only visible damage was some bend-ing of the set screw sockets. The opera-tor was able to run the same centraliz-ers again and eventually install them at target depth. The offset bow centralizers were run through the whipstock window on five occasions without snagging or packing out on the edges. By comparison, an oversized conventional bow spring centralizer would have exhibited consid-erably more drag during pullout.

The offset bow centralizers are also being used in various Latin Ameri-can operations. In an Ecuadorean well, 7-in.9-in. centralizers were run through previously set 8.535-in. inside diameter casing into a 10.4-in. aver-age diameter open hole. The installed centralizers achieved a standoff higher than the customers requirement of 70% along the target zone. In addition, there was less risk of differential sticking, an even annular flow of fluid, and a good well cleanout, with an improved cement job ultimately achieved. The centraliza-tion was defined using an analysis of openhole logs, standoff calculations, and liner tally. Centralizers were distributed two per joint along M1 sandstone.

It is necessary to understand the insertion forces and the cumulative run-ning forces, as both affect the RIH per-formance because the bows are squeezed while passing through the smaller inner diameter of the previously set casing. If needed, the first few joints can be pre-filled with mud to increase the strings weight and enable it to be run in under its own weight from the beginning when less weight is present. This makes it possible to overcome the initial inser-tion and running forces without push-ing thepipe.

In the Ecuador case, when all the casing was run and the liner hang-er was installed, the pickup weight was 100,000 lbf and the slackoff weight was 70,000 lbf, which indicated 30,000 lbf of drag. Fig. 2 shows the drag calculation results, which are close to the real val-ues observed while running the casing. In this case, the running force for each centralizer was approximately 1,000 lbf.

There was no restriction while run-ning the liner through the open hole, and the bottom was reached without problems. During circulation, there was no indication of debris accumulation

caused by drag. According to the circula-tion parameters, the well showed a good cleanout. By having acceptable drag con-ditions when passing through the previ-ously set casing, low drag conditions in the open hole, and maximizing standoff in an enlarged annulus, the offset bow centralizers proved to be a major aid to reaching bottom and obtaining a good cement job in the Ecuadorean well.

Summary of BenefitsOffset bow centralizers result in great-ly reduced torque and drag losses, and because they are heat treated, abrasive wear caused by running to depth and rotating the tubular is eliminated. Reduc-ing torque ensures that casings can be rotated without wear in cased and open holes at deeper levels than would oth-erwise be possible. The ability to rotate a pipe can also greatly assist in mud removal. Typically, a rotational speed of 6 to 10 rev/min is all that isneeded.

The centralizers are individually designed to fit each wellbore, rather than generally designed for specified gauge holes. Secure stop collars prevent cen-tralizer movement on run in or pullout.

Fig. 2The drag calculation results were close to the real values while running the casing.

Liner Production: Drag

Casi

ng S

hoe

Mea

sure

d De

pth,

m

Hookload, lbf40,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

60,000 80,000 100,000

Running by itsown weight 17,150 lbf

70,000 lbfSlackoff

96,000 lbfPickupTraveling Assembly

Weight

Slackoff weight, lbfPickup weight, lbfStatic weight, lbf


TECHNOLOGY UPDATE


The choice of a centralizer depends on a number of factors such as the expect-ed flow by area, the desired standoff, the strength and geometry of the formation, the required zonal isolation, the central-izer flexibility needed to traverse known

formations, and the estimated start and running forces.

Ensuring a lasting, effective annular seal in the wellbore is vital to maintain-ing oil and gas production. Preventing water inflow is extremely important and

requires good zonal isolation. Achieving a long-term annular seal is difficult, espe-cially in long extended reach wells. The use of offset bow centralizers can aid the cementing process in underreamed and conventional extended reach wells. JPT


2014 SPE President

Jeff SpathJohn Donnelly, JPT Editor

Jeff Spath is a member

of the Schlumberger

executive management

team as vice president

of industry affairs and is

the 2014 SPE President.

He will take office during

the 2013SPE Annual

Technical Conference and

Exhibition,to be held

30September2 October

in New Orleans.

PresInterview.indd 32 8/13/13 9:24 AM


What are your goals as SPE president?One goal would be to further globalize the Society. There is no doubt that SPE has made huge strides internationally from what was once a predominantly North American member soci-ety in the 1970s and 1980s. Today, more than half of our mem-bers reside outside North America. We have to continue to fol-low the upstream oil and gas business to the new frontiers, the new basins, and the new regions of exploration such as Green-land, east Africa, and the Caspian. Not just for the sake of mem-ber growth, but to make SPE more local and more relevant by adding professional sections and student chapters so critical to achieving successboth for industry and for individualsin these new regions.

Secondly, we need to increase the degree to which SPE engages and collaborates with other organizations. We all accept that reservoirs are becoming more challenging to dis-cover and produce. They are smaller, more complex, and they exist in increasingly hostile terrains under more difficult tem-peratures and pressures. Not to mention the challenges created by nano-perm shales and ultraheavy oil.

No single company, university, or government has all the expertise required. So we need to collaborate in all directions, including with other industries, such as the aerospace, automo-bile, and medical industries. SPE has an incredible reputation as a professional society and I want to capitalize on this reputation by taking the lead in fostering collaboration with other indus-tries, other societieswhich we are already doing quite welland with trade associations.

Also, I hope members are aware of the new SPE Strategic Plan that the SPE Board of Directors put together under the

guidance of my two predecessors. I am in the fortunate posi-tion now to oversee the implementation of this strategy that will further grow and strengthen SPE, and this will occupy much ofmy time.

What is the best way for SPE to continue to pursue globalization?Historically, SPE has followed the industry. After a significant number of operators and service companies have located in a region and universities have staffed up, SPE establishes a pres-ence. What I would like to do in places such as east Africa and in Myanmar, for example, is to be there, not necessarily first, but in parallel with the building of the industry.

Myanmar is a great example of a country in which SPE can bring significant value to individuals and to companies both, proactively, as they begin upstream development. Trade sanc-tions have just been removed, and Myanmar has had huge, very successful lease sales recently with operators such as Chevron, Petronas, PTTEP, Total, and others entering the mix.

I had an interesting experience on my last visit there when I toured the technical universities, recently reopened, after decades of being closed by the government. Schlumberger sup-ports universities around the globe by donating computers, software, bandwidth, etc., and so I offered these things but they said, No, no, we need buildings, we need faculty. They dont even have buildings and faculty and are trying to start a petro-leum engineering program. This is where SPE should beon the ground, early, where the operators and service companies are going and initiating new operations, disseminating the technology, and sharing the expertise.

Previously, he was president of the Schlumberger Reservoir Management Group and was president of Data and Consulting Services. He began his career with Flopetrol-Johnston Schlumberger asa field engineer conducting well tests onshoreandoffshore Louisiana and has workedfor 30 years invarious global positions inreservoir engineering, research, andmanagement.

Spath is a recognized leader in the development and application of reservoir engineering and production enhancement techniques, including well testing, reservoir simulation, and nodal analysis. He is the author or coauthor of nearly 30peer-reviewed publications and holds 14patents.

An SPE member since 1983, Spath has served on many SPE committees and in many sections around the world. He was a Distinguished Lecturer during 19992000 and served as Technical Director of Management and Information during 20052008. He was elected an SPE Distinguished Member in 2011. Spath also currently serves on the Management Committee of the International Association of Oil & Gas Producers; the petroleum engineering advisory boards at Texas A&M University, the Colorado School of Mines, and the Natural Petroleum Council; and on the United Nations Global Energy Board.

Spath earned BS and MS degrees in petroleum engineering from Texas A&M University and a PhDdegree in reservoir engineering from the Mining University of Leoben in Austria.


SPE PRESIDENTS INTERVIEW


You mentioned the importance of the SPE Strategic Plan. What does it stress?The new plan refocuses the Society on what will be its most important functions over the next several years while reinforc-ing its mission and vision (see article on the SPE Strategic Plan beginning on Page 42). First, let me say that the strategy is a verification of our original and fundamental purposethat of serving our members in the dissemination of quality, trusted technical information. To this end, members can expect to see additional methods of obtaining information about technology, through online journals, mobile devices, and other means.

Beyond this, though, there are a few specific strategic intents that will be important to ensuring the continued suc-cess of the industry, our profession, and SPE. One of my per-sonal favorites is the strategic intent of increasing the attrac-tion and retention of petroleum engineering faculty. The short-age of faculty at petroleum engineering schools is having a significant effect on the growth of our industry and, by cor-relation, our Society. Universities and industry both recog-nize this, and SPE is in an opportune position to help coordi-nate a solution. This issue is, to a certain extent, global, and is

particularly challenging in North America. It does no good to attract more young people to our profession and then accept less than 10% of petroleum engineering applicants due to lack of sufficientfaculty.

SPE has spent a lot of time and effortwell-spent time and effortgoing in to secondary schools to educate teachers and students on the wonders of our industry. So, on the one hand, we are encouraging all of these young bright students to enter our profession, but then we have to turn them down at the uni-versity level because we do not have enough faculty.

Only two countries graduate more petroleum engineers than they can employ: Venezuela and China. Everywhere else in the world, the industry is screaming for more petroleum engi-neering graduates. And the reason there are not more petro-leum engineering graduates is not a lack of people who want to be petroleum engineers, but because we do not have enough people to teach them.

Many companies hire mechanical engineers, electrical engi-neers, chemical engineers, and civil engineers and turn them into petroleum engineers through internal training. The indus-try would love to hire 100% petroleum engineers but it cant

because they are not there. I have worked with a lot of university deans in trying to solve this problem and I believe it is solvable. But what is happening now is that you have Schlumberger trying to solve it with Texas A&M, Chevron trying to solve it with the University of Southern California, and so on. There is a lack of coordination. Coordination will be the role of SPE.

If you have a choice between being a teacher or working for an operator or service company that does really interesting work and pays a higher salary, you might choose that company over teaching.That is the crux of the problem. Like nowhere else in the world, US universities graduate PhDs but dont keep them. They all go to industry. Or they go back to their country of origin.

A possible solution, and where SPE could help, is to take the 50-plus-year-old employees that do not have a PhD and put them into the universities as they finish their careers. I have worked with the deans at Texas A&M, the University of Texas, and the Colorado School of Mines and convinced them that they need to drop the PhD requirement for teaching undergraduate education. If a petrophysicist, for example, has been interpret-ing well logs for 35 years, he or she can probably teach under-graduates how to interpret well logs. We call them professors of practice.

Our company has taken another step along that path with a program called Schlumberger Professor Emeritus. We just did this for Colorado School of Mines. We took a world-class petro-physicist who was 60 years old and loved teaching. We kept him on our payroll to simplify benefits and he teaches at the univer-sity, which reimburses us 50% of his salary. We win because we want him there readying students for hire and he is a good ambassador for our company. The university wins because it is getting for half price a world-class petrophysicist who has inter-preted logs and geologies all around the world.

The only way to make a program such as this work is to do it in volume and that is how SPE can help, by coordinating such a program. This is a passion of mine, and it happens to be part of the strategic plan.

How will individual members be affected by the strategicplan?One of its emphases will be the bread and butter of SPE, which is the dissemination of technical information. We have identified ways SPE can be more relevant to members, such as bringing technology to people on the go. That is another element of the plan that I have a personal passion for: knowledge building and capability development. SPE will continue to provide options in training and competency assessment in an effort to reduce the time to autonomous decision makingone of the banes of ourindustry.

Two things cut horizontally across everything SPE doestechnical quality and volunteerism. Volunteerism originally was one of the intents of the strategic plan, but the board con-cluded that it does not really fit as a strategic intent because

Only two countries graduate more petroleum engineers than they can employ: Venezuela and China. Everywhere else in the world, theindustry is screaming for more petroleumengineering graduates.




volunteerism is part and parcel of everything SPE does. But one thing members around the world will notice about the strategic plan throughout is the renewed focus onvolunteerism.

SPE is going to improve the volunteer recognition pro-gram, and we are going to help industry professionals volun-teer by helping with some administrative details that volun-teers deal with. Here is a great example from west Texas: when a small section wants to have an SPE Distinguished Lecturer come speak, someone from the section has to volunteer time to book a hotel room, make sure somebody picks the lecturer up at the airport, etc. We need to make better use of our volun-teers time and to support them so that they can add the most value to SPE.

Volunteerism is fundamental to our success, so we want to develop ways to improve volunteerism. We need to continually re-emphasize volunteerism because people are getting busier and busier and the volunteers that SPE traditionally relies on outside of young professionals are mid-career employees.

Engineers and managers both are doing more with less. I am not saying it was ever easy to balance workload, family, and volunteering, but it seems to me that the workload for many has dramatically increased. Mid-career professionals do the bulk of the volunteering today. Unfortunately, mid-careers are the exact demographic that is being challenged by the big

crew change. I have talked to members of operating companies who used to be responsible for 10 wells in the Permian Basin in Texas and now they are responsible for 100 wells in the Perm-ian and three new wells being drilled in the Gulf of Mexico. And you want them to volunteer? I mean, the guy hasnt seen his kids in 2 weeks. It is up to SPE to think of ways to help mem-bers volunteer, such as reducing the burden of administrative tasks associated with reviewing technical papers or setting up Distinguished Lecturer tours. We need to emphasize the value of volunteering and get better at recognizing the effort.

What else should SPE emphasize in the near term?If SPE is to continue to grow as rapidly as it has in the past decade, the organization needs to better emphasize the advan-tages of being a member, and here I am talking simply about marketing what it can provide, both to existing and potential members. I have talked with members who have never been to the SPE website and seen the valuable links and information it provides. One of the most valuable assets the Society offers, the OnePetro library of 150,000 technical papers, is never accessed by some members.

Perhaps one of the most important initiatives SPE has embarked on fairly recently, and one in which we must increase our emphasis, is educating the public about our industry and, more importantly, our profession. We need to proactively, hon-estly, factually, rationally, openly, and not defensively discuss the good our industry brings to society, and SPE must be the trusted, independent source of facts around issues that worry the public. This theme of energy education, now profession-ally delivered through the Energy4Me initiative, is essential to SPEs mission and I will build on the work of my predecessors in this effort.

What is the best way to educate the public about energy?Let me start by saying we got off on the wrong foot. When the movies came out about hydraulic fracturing and the rhetoric got hot and heavy, what did the oil and gas industry do? We, as we typically do as engineers, said, Thats not right, here are the facts, you guys are wrong, and we got defensive. And guess what? They found one well out of a million in Pennsylvania somewhere, which for completely different reasons, was leak-ing gas. And critics said, Engineers, youre not so smart. Here is an example. So we have to level with the public. We have to agree with them, first of all, that there are potential hazards involved in producing oil and gas, as with any form of energy. And we have to prove to them that we are addressing those potential hazards.

There is a consortium of companiesincluding Schlum-berger, Halliburton, Baker Hughes, the other pressure pump-ers, and the operatorsthat are involved in an initiative called FracFocus, a website whose primary purpose is to provide the public access to information on chemicals used for hydraulic fracturing in their region. For example, a service company will go out and take a baseline measurement of methane, noise,




CO2 in the atmosphere, and any groundwater contaminants in the area. Then after the well is fractured, the same measure-ments are taken and the before-and-after results are published along with details about exactly what was pumped, chemical by chemical. A landowner, an environmentalist, or whomever can go to this website and get facts. So that is one way that we have disseminated factual information, and it is working. This has been so successful in the US that the International Association of Oil & Gas Producers, of which I am on the board, is doing something similar for Europe and elsewhere.

Are there other ways in which SPE can become more valuable to the industry?SPE has an extraordinary record of adding value to its mem-bers and to our industry in general; I doubt anyone would ques-tion that. This value will increase as our services and our global footprint continue to grow. SPE has the ability and opportuni-ty to help the industry as a whole by leveraging the strengths of its global reach, its more than 110,000 members, its tech-nology library, its independence, and its financial strength to achieve solutions to significant issues that may not be possible

to achieve by companies working alone, or by individual com-panies working with individual universities. Solving the fac-ulty shortage problem I mentioned earlier is one example of an industry problem that SPE can work across companies and across universities tomitigate.

And now I come to my central point on how SPE can become more valuable to the industry: It is the coordination of solving complex technology challenges through integration andcollaboration.

By providing seminal, member-written white papers and providing the forum to showcase technical challenges and shar-ing potential solutions through the new Summit program, SPE can facilitate and accelerate the solving of industrywide techni-cal challenges. Each individual company can do that, or SPE can pave the way and coordinate thecollaboration.

We are already adding significant value around integration by partnering with AAPG and SEG, for example, in various con-ferences and workshops to facilitate the bringing together of ideas, domains, and data. The feedback on these types of joint conferences has been very positive so we need to think about how to expand this. A great example is the Unconventional

Resources Technology Conference recently held in Denver. We cohosted this with AAPG and SEG because we know that the understanding of shale gas requires geologists, geophysicists, and engineers. In the future, we need to also invite geochemists and mathematicians.

How does collaboration benefit the oil and gas industry?As I mentioned before, the technical challenges we face today are often too difficult for any one organization to solve. Take the challenge of dramatically improving recovery factors, for example. Schlumberger has gotten serious in improving EOR techniques and measurements. However, while we are really good at measurements and understanding the subsurface, we do not possess the best chemistry labs in the business. So we partnered with Shell. Now, neither Schlumberger nor Shell has world-class imaging at a nanoparticle level, so we partnered with Massachusetts Institute of Technology, who does. We now have a three-pronged alliance with seven successful EOR research projects.

This is the value of collaboration. And of course it doesnt need to end with collaboration within our industry. There are a lot of exciting developments happening outside of the E&P world that can have a huge impact on our businessfrom nano-technology to advanced robotics. As disruptive technologies evolve in other industries, we need to get smarter and quicker at adopting them into our industry. To a certain degree it requires a culture shift, and SPE can lead the way by fostering and coor-dinating the necessary relationships.

Can SPE continue to grow at the same pace that it has for the past few years?SPE has doubled membership in the past 10 years, and it can repeat this in another 10. There are two modes of growth. One is old-fashioned geographical expansion, where you grow your footprint in areas that are emerging. Places such as the Arctic, east Africa, Greenland, Myanmarthose are places in which we have not yet stepped foot.

A second mode of growth is where SPE has a presence but has yet to achieve the level of acceptance desired. One is Mexi-co and another is Russia. In Russia, I have already talked to the heads of Lukoil, Rosneft, and Gazprom and received positive feedback. We need to follow up now with the employees. Anoth-er area for growth, of course, is China. There are obstacles in language and in culture but we are solving these.

How will your career experience inform your presidency?To my knowledge, there is not a job description for being SPE president, nor a list of required qualifications, but I would like to think I am well prepared, and naturally hope my peers will agree. Two strengths I have that I feel will serve me well are a strong technical background and a varied, global career that has allowed me to work among many different cultures, value systems, business philosophies, and operating environments. One advantage I think I have from working for a global ser-

Now I come to my central point on how SPE can become more valuable to the industry: It is the coordination of solving complex technology challenges through integration andcollaboration.




vice company for 30 years is the experience of interacting with all walks of the upstream life: from the largest IOCs and NOCs to the smallest independents. Finally, while I have worked for the same company my entire career, I have held positions from field engineer to salesman, from R&D to executive man-agement, so I think I can relate to people in various parts of thebusiness.

So this gives me the breadth of understanding of how Anadarko, for example, works differently than Petrobras. And they both work differently than, say, ExxonMobil. Each of these groups of companies, not to mention each individual compa-ny, has a unique culture and I have seen it in practice. I know, for example, there are companies that just love SPE and they encourage their employees to write papers and go to confer-ences and travel halfway around the world for an SPE training course, because they know it will be worthwhile. And I have seen the opposite, where a company I will not mention recent-ly told me, We dont need SPE. There is a spectrum out there and I think my experience in knowing how different companies and different cultures extract value from SPE differently will be anadvantage.

Where do you see technology taking the industry in the next 5 or 10 years?Quite a few exciting developments are going on now in the industry. If I had to pick one or two that I think are most promis-ing, the recent advances in drilling, specifically around rig auto-mation, would be among the top in terms of improving our effi-ciency, safety, and bringing overall well costs down. The combi-nation of a dramatic increase in measurements along the drill-string and bottomhole assembly with computerization (thus optimization) on the rig floor and the designed integration of rotary steerable motors with the optimal bit and the optimal fluids is creating a huge impact on the operators bottom line.

A second growing trend in the industry addresses the integration of disparate measurements and data to reduce uncertainty and manage risk. This is not a new concept by any means, but the extent to which we are now com

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