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Advanced Oil & Gas Exploration

and Production Technology

Course No: P07-001


Credit: 7 PDH

Gilbert Gedeon, P.E.

Continuing Education and Development, Inc.


9 Greyridge Farm Court
Stony Point, NY 10980

P: (877) 322-5800
F: (877) 322-4774

info@cedengineering.com
U. S . D E PA RT M E N T of E N E RG Y

OF FI CE of F O S S IL EN E RGY

E N V I R O N M E N TA L B E N E F I T S
of A D VA N C E D O I L and G A S E X P L O R AT I O N
and P RO D U C T I O N T E C H N O L O G Y
O IL A ND G AS IND U ST RY

TECHNOLOGY
Protection of
Habitats,
Fewer Wells Wildlife, and Better
or Smaller Cultural Wellbore
Dry Holes Footprint Resources Control

EXPLORATION
1 3-D Seismic
2 4-D Visualization
3 Remote Sensing
4 Subsalt Imaging

DRILLING AND COMPLETION


5 CO2-Sand Fracturing
6 Coiled Tubing
7 Horizontal Drilling
8 Hydraulic Fracturing
9 Measurement-While-Drilling
bl Modern Drilling Bits
bm Multilateral Drilling
bn Offshore Drilling
bo Pneumatic Drilling
bp Slimhole Drilling
bq Synthetic Drilling Muds

PRODUCTION
br Acid Gas Removal and Recovery
bs Artificial Lift Optimization
bt Coalbed Methane Recovery
bu Freeze-Thaw / Evaporation
cl Gas-to-Liquids Conversion
cm Glycol Dehydration
cn Advanced Data Management
co Improved Recovery Processes
cp Leak Detection and Measurement Systems
cq Low-Bleed Pneumatic Devices
cr Offshore Platforms
cs Downhole Oil / Water Separation
ct Safety & Environmental Management Programs
cu Vapor Recovery Units

SITE RESTORATION
dl Advanced Approaches to Site Restoration
dm Rigs to Reefs
dn Road Mix and Roadspreading

SENSITIVE ENVIRONMENTS
do DOE-BLM Partnership
dp Coastal and Nearshore Operations
dq Insulated Ice Pads
dr North Slope Operations

76 E N V I RO N M E N TA L B E N E F I TS
E XPLORAT I O N AND PRO D U CT I O N

FA C T S H E E T S
Reduced Reduced Air Reduced Optimized
Reduced Protection Power Emissions Greenhouse Enhanced Recovery of
Waste of Water or Fuel (e.g., HAPs, Gas Emissions Worker Valuable Oil and
Volumes Resources Consumption NOx, PM) (e.g., methane) Safety Gas Resources

The technologies described in these Fact Sheets are merely representative of the numerous advances in exploration and
production technology over the last three decades and, as such, are not intended as an exhaustive inventory of these advances.

OIL AND GAS TECHNOLOGY 77


EXPLORATION

EXPLORATION
TECHNOLOGY Locations: Worldwide, onshore and offshore

3-D Seismic

SUMMARY BLUEPRINT ON TECHNOLOGY 1


Advances in 3-dimensional Two decades of successively better geologic interpretation
(3-D) seismic technology demonstrate tangible results and environmental benefits
over the past 25 years
have enabled oil and gas From 2-D to the field is abandoned. In the increased capacity from to
producers to evaluate 3-D technology last years, the discovery , channels, as many as
, cost has decreased from
prospects more effectively,
drill fewer exploratory
U NTIL THE
developers had to rely
on inaccurate, low-resolution
per barrel with -D seismic to
just under per barrel with
seismic data lines can be
recorded in a single pass, and
satellite navigation systems
wells, and develop fields
analog data in planning their -D seismic. Better geologic have evolved to pinpoint
more efficiently. The result exploration investments. In representations, coupled with accurate positioning of
is decreased environmen- the s, improved -D seis- advanced drilling and pro- sources and receivers. At the
tal impact and increased mic techniques enabled duction technologies, also same time, technological
profit. To establish a visual
explorers to characterize sub- lead to increased recovery improvements have reduced
surface opportunities with efficiencies. computing time and lowered
orientation of the subsur-
greater effectiveness. Now, costs. -D stack-time migra-
face without drilling,
with -D seismic, they can Several major improvements tion can now be performed in
energy waves directed establish more accurate -D in -D surveying occurred a few hours on massively par-
downward through the characterization of geologic during the , in seismic allel processors, and between
earths strata are reflected structures. Reservoir charac- data acquisition, processing, and , costs dropped
off the rock layers and
terization is key across all computer hardware, and from million to million
stages of a hydrocarbon fields interpretation and display. for a -square-mile survey
sent back to the surface.
life. Seismic information, Particularly remarkable have using -D post-time depth
The resulting data under-
critical during the exploration been the hardware improve- migration. By , costs for
go complex processing and appraisal phase, is now ments. Within the last five an equivalent survey are
and interpretation and used for development until years, recording systems have expected to be near ,.
provide explorationists
with a 3-D visual charac-
terization of the subsur- ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
faces geological features.
Helps explorers to better identify oil and More accurate exploratory well-siting reduces
This allows detailed gas prospects the number of dry holes and improves overall
assessment of the oppor- productivity per well drilled
More effective well placement improves
tunities and risks of devel-
development of resources Less drilling waste is generated
oping a reservoir, an
increasingly important Fewer dry holes ultimately reduces drilling and Better understanding of flow mechanics
capability as the search for exploration costs produces less water relative to oil and gas
resources pushes into new
Can substantially improve project economics Overall impacts of exploration and production
exploration frontiers, such
by reducing overall drilling costs are reduced because fewer wells are required
as deepwater and subsalt to develop the same amount of reserves
formations. Exploration time relative to successful
production is cut
EXPLORATION

CASE STUDIES

sensitive environments. Success in the Field


Explosives used to generate
sound waves recorded by a 3-D seismic highly effective for portfolio
seismograph can now be management at Amoco
replaced where necessary by Amoco Corporation established an exploration drilling success
vibrating technology that rate of percent for its -D seismic exploration activities
sends an acoustic signal. between and . By contrast, its exploration success rate
Offshore seismic surveying for wells drilled without the benefit of -D seismic was only
now relies on the use of percent. To evaluate the effectiveness of using -D, data were
compressed air guns to collected on seismic surveys and a control group of other
-D seismic has now gained prospects. -D proved extremely valuable at defining geometries,
ensure protection of marine
widespread acceptance.
life. Depending on the kind particularly in the North Sea and Gulf of Mexico. Where con-
Whereas by only ventional surveying turned up eight prospects, -D narrowed
of information needed, the
-D seismic surveys had been
geology expected, the these down to two. In addition, while all eight had been given
done, by the mid- an an economic success probability of between and percent,
nature of the field, and the
estimated -D seis-
costs, -D seismic explo- -D seismic correctly predicted that the two selected had a poten-
mic surveys were being con- tial success rate of percent.
ration can be customized to
ducted annually. Offshore
protect the specific terrain.
growth has been tremen-
For example, in mountain-
dous: in , only percent METRICS
ous terrains, standard seis-
of the wells drilled in the
mic techniques (-D) Exploration success in
Gulf of Mexico were based
required densely gridded
on -D seismic data; by the United States
surveys for accurate geologic
, nearly percent used
descriptions. -D acquisition
-D seismic. Onshore, Advances in 3-D seismic and drilling and completion
techniques allow for more technology dramatically increased drilling successes.
percent of all surveys were
widely spaced, less invasive
conducted with -D seismic
surveys while providing bet-
by . Exploratory Wells
ter quality data. 0% 100%

Answering environmental
Advancements in -D data
1970 17%

and safety challenges


processing also allow for 1980 30%
Today, producers are work-
survey acquisition in areas
ing to assess and minimize 1997 48%
congested with urban or
the impact of -D seismic
industrial noise sources.
equipment and crews on Source: Energy Information Administration, 1998

SOURCES AND ADDITIONAL READING CONTACT

Aylor, W. The Business Impact Locke, S. Advances Reduce Total


and Value of 3-D Seismic. OTC Drilling Costs. The American Oil
7960, 1996. & Gas Reporter, 7/98.

Aylor, W. Role of 3-D Seismic in Hansen, W. Reducing the Impact


Exploration Turnaround. Oil & of 3-D Seismic. SPE 35812, 1996. U.S. Department of Energy
Gas Journal, 3/1/98. Office of Fossil Energy
Nesser, D., and J. Pohlman.
1000 Independence Avenue, SW
Barr, F. New Seismic Technique Offshore Seismology Today:
Washington, DC 20585
Is Improving Hydrocarbon More, Better, Faster, Cheaper.
Recovery. Journal of Petroleum Offshore, 3/98. Edith C. Allison
Technology, 7/96. (202) 586-1023
edith.allison@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
EXPLORATION

EXPLORATION
TECHNOLOGY Locations: Worldwide, onshore and offshore

4-D Visualization

SUMMARY BLUEPRINT ON TECHNOLOGY 2


Three-dimensional (3-D) Evolving seismic technologies improve accuracy and
seismic technology has interpretation, allowing operations to be tailored to
revolutionized oil and gas
protect the environment
exploration and served as
a springboard to visualiza- Adding a fourth occurring over time and link seismic data) into time-lapse
tion technology. Now dimensiontime these to static and dynamic imagery and reservoir perfor-
emerging visualization
and 4-D time-lapse moni-
P E T RO L E U M E N G I -
neers, geologists, and
planners have a far better
reservoir properties and pro-
duction techniques. They can
then follow the consequences
mance modeling. As this
time-dependent tool is c
orrelated with physical data
toring technologies are
understanding of the geologic of their reservoir management acquisition, more accurate
improving interpretation
structures of potential hydro- programs and make predic- characterization of subsurface
of the data 3-D seismic carbon-bearing formations tions as to the results of reservoirs will be possible,
imaging provides. now that reservoir images are future activities. -D monitor- pushing maximum recovery
Invaluable in locating projected in three dimen- ing is an offshoot of the com- efficiencies.
bypassed reserves in exist-
sions. Four are better still, puter processing techniques
largely due to DOE-supported developed for -D seismic Geologists and planners are
ing formations and discov-
research. A reservoirs fluid interpretation. better able to understand the
ering new resources, seis-
viscosity, saturation changes, structure of promising forma-
mic reservoir characteriza- temperature, and fluid move- With improved visualization tions. As computing science
tion can now incorporate ments can be analyzed by techniques, petroleum engi- advances, further gains will be
perceptual cues such as time-lapse monitoring in neers, geologists, and geo- made. Already, audio technol-
projection, lighting and
three dimensions. The time- physicists are integrating ogy is being added, both for
lapse picture is built out of many types and ages of data controlling images and pre-
shading, depth, motion,
data re-recorded at intervals, (well logs and production senting complex geological
and transparency. This
compared and plotted by information, reservoir tem- data so that scientists can
technology enables a computer onto a -D model. peratures and pressures, fluid share data in real time from
more consistent, detailed Engineers can view changes saturations, -D and -D remote locations.
picture of a complex for-
mation. 4-D monitoring ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
goes one step further,
Improved recovery due to precise placement of Reduced drilling due to more successful siting
providing a dynamic
injector wells and infill drilling of wells, with greater recovery from existing wells
picture of hydrocarbon
flows and other reservoir More efficient operations due to better Less drilling waste through improved reservoir
identification of drainage patterns management
changes over time,
information valuable for Lowered operating costs because of improved Lower produced water volumes through better
both exploration and program timing and fewer dry holes well placement relative to the oil/water interface
reservoir management of in the formation
Increased identification and ultimate recovery of
existing resources.
as yet untapped resources Increased ability to tailor operations to protect
sensitive environments
EXPLORATION

CASE STUDIES

Success in the Field Immersed in 3-D visualization at ARCO


The ultimate formation viewing experience is to be immersed in
a walk-in virtual reality cube that replicates geophysical features.
In ARCOs Immersive Visualization Environment, images from
projectors and mirrors outside the cube are projected onto three
South China -foot walls of seamless screens. An electromagnetic tracking sys-
Sea Brunei
tem orients the viewers perspective, and stereoscopic goggles use
alternate left- and right-eye images and infrared timing devices to
create -D effects.
Malaysia ARCOs exploration teams have used the facility to study data
from the North Sea, Alaskas North Slope, and a project near the
Philippines, using its superior visualization capabilities to produce
Indonesia solutions to drilling problems. In the North Seas Pickerill field,
for example, drilling plans for a multilateral hole were complicat-
ed by pressure changes among the reservoirs different compart-
Borneo ments and drilling hazards above the reservoir. Adjustments to
the original drilling plan were dictated by judgments made in the
Visualization Environment, avoiding potential problems.

Java Sea
METRICS

Estimated recovery for oil-in-place


4-D seismic in Indonesia at BP Amoco/Shells Foenhaven field
The Duri field in central Sumatra was the first -D project of its
kind. Today over time-lapse projects follow its lead. Producing in offshore U.K.
, barrels of oil per day, the PT Caltex Pacific Indonesia Technology Percent Recovery
project is the largest steamflood in the world. In , Caltex 0% 100%
began -D recording in a series of eight surveys to determine
whether time-lapse could successfully monitor a steamflood. The 2-D 2530%

goal: to improve oil recovery and cut energy use. The data gener- 3-D 4050%
ated helped direct the injection process and identify both swept
4-D 6570%
and unswept zones. Due to the projects success, Caltex started
baseline surveys in six new areas, and other companies are also
Source: Harts Petroleum Engineer International, January 1996
initiating use of time-lapse monitoring.

SOURCES AND ADDITIONAL READING CONTACT

Gras, Cox, and Sagert. 3-D Ramshorn, C., and R. Sagert. Track Production with 4-D
Visualization, Automation Speed Interacting with Data in Virtual Technology. The E&P
Interpretation Workflow. World World Leads to Better Real- Connection.
Oil, 9/98. World Decisions. The American
Williams, P. Time-Lapse Seismic.
Oil & Gas Reporter, 7/98.
He, Wei, et al. 4-D Seismic Helps Oil and Gas Investor, 5/98. U.S. Department of Energy
Track Drainage, Pressure Texaco E&P Center Allows Office of Fossil Energy
Compartmentalization. Oil & Visual Probe of 3-D Data 1000 Independence Avenue, SW
Gas Journal, 3/27/95. Volumes. Oil & Gas Journal, Washington, DC 20585
7/1/98.
He, Wei, et al. 4-D Seismic Edith C. Allison
Monitoring Grows as Production Tippee, B. Immersive (202) 586-1023
Tool. Oil & Gas Journal, 5/20/96. Visualization Provides an edith.allison@hq.doe.gov
Insiders View of Subsurface. Oil
Locke, S. Advances Reduce Trudy A. Transtrum
& Gas Journal, 6/1/98.
Drilling Costs. The American Oil (202) 586-7253
& Gas Reporter, 7/98. trudy.transtrum@hq.doe.gov
EXPLORATION

EXPLORATION
TECHNOLOGY Locations: Worldwide (especially deepwater)

Remote Sensing

SUMMARY BLUEPRINT ON TECHNOLOGY 3


Used in conjunction with Remote exploration helps pinpoint hydrocarbon resources,
other exploratory tech- pollution sources, and sensitive environments
niques, such as 3-D seis-
mic imaging, remote sens- Enhanced satellite satellites emit energy at images by gathering up to
ing systems detect and imaging systems microwave frequencies, seven bands of light spectra in
prism-like fashion. In ,
map concentrations of
hydrocarbons with greater
O P T I C A L S AT E L L I T E
imagery has been the
predominant source of data
enabling them to acquire
imagery under nearly any
atmospheric condition.
when the U.S. Navy plans to
launch its Navy EarthMap
accuracy than other tech-
for identifying and mapping Sophisticated digital image Observer satellite, an exciting
nologies alone, and with onshore geology since the processing systems can now new satellite technology
less environmental early , when the first convert and sort raw satellite called hyperspectral analysis,
impact. Technologies such Landsat Earth Observation data into thematic maps that accessing upwards of
as satellite imagery, aero-
satellite was launched. Today, point to the location of pro- bands of light, will further
satellite imagery, onshore and ductive formations, even increase imaging accuracy.
magnetic surveys, and
offshore, is also provided by detecting oil and gas seepages
gravimetry are now being
radar satellites very sensitive that indicate migration path- Improved aeromagnetic
applied by the largest to the earths surface con- ways from undrilled traps. surveys
exploration companies to tours. For example, various Similarly, remote sensing Initially developed for mili-
attempt to detect the ver- types of satellites can see techniques can also identify tary applications, aeromag-
tical or near-vertical
through feet of clear water hydrocarbon spills and leaks netic surveying has evolved
and up to feet beneath the in remote areas, such as along into a productive exploration
migration of oil and gas to
surface. Early optical satellites pipelines. technology that can recognize
the earths surface and
depended on visible or near- the magnetic signature of
help identify promising infrared light to collect energy Current multispectral satel- potential hydrocarbon-bearing
geologic structures. These reflected from the earths lites such as the Landsat basins from altitudes over
systems measure gases, surface. By contrast, radar Thematic Mapper create , feet. Using a
solids, and liquids, using
their physical properties to
attenuate or reflect beams
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
of electromagnetic energy.
Resulting geophysical data Increased exploratory success rates Accurate identification of fragile ecosystems,
are processed into easily enabling care when drilling
Dramatically reduced exploratory costs
understood images and
Increased ability to address environmental needs
maps, and form an inte- Access to geological data otherwise
gral part of current unobtainable Fewer dry holes and nonproductive exploratory
onshore and offshore
wells are drilled
Increased recovery of resources from frontier
programs throughout basins Improved characterization of earths natural
the world. systems
Identification of hydrocarbon seeps as
distinguished from oil spills or pollution Identification of spills and leaks in remote areas
EXPLORATION

CASE STUDIES

magnetometer mounted on Satellite gravity imaging Success in the Field


a magnetically cleaned air- uses radar to measure undu-
craft, explorers are success- lations in the sea surface
fully mapping sedimentary that reflect density varia-
anomalies critical to oil and tions in the earths upper
gas exploration, detecting crust. This technology
salt/sediment contact, min- enables mapping of areas of
Russia
eralized shear zones, and mass deficit, where sedi-
intrasedimentary markers. mentary deposition is likely
to have occurred. Identifi-
Kazakhstan
Recent improvements in cation of such areas gives
magnetometer design, digi- explorers a better idea of
tal signal processing tech- where hydrocarbons may be Caspian
Sea
niques, and electronic navi- located.
gation technologies, in
Azerbaijan
combination with faster Putting it all together
sampling of the magnetic Exploration companies like Turkmenistan
field and the use of more BP Exploration, Exxon,
detailed survey grids, allow Mobil, Texaco, Unocal, and
mapping of subtle magnetic RTX are tailoring their
signatures. These advances remote sensing programs to Iran
improve the interpretation combine technologies as
and visualization of needed. Recent advances
geological data. in radar imaging and Satellites help explore in the Caspian Sea
sophisticated image-process- After water-level changes along the shallow coast of the Republic
Measuring gravity to gauge ing packages, combined of Kazakhstan made their bathymetric maps obsolete, Oryx
resources with satellite-derived gravity Energy and its exploration partner, Exxon, turned to remote
Gravimetry measurement is and bathymetry data, for sensing to gauge depths. Water depth fluctuations caused by
now derived from both example, present new wind can make movement of seismic and drilling equipment
satellite and airborne obser- opportunities to use remote challenging. With satellite image processing technology, the team
vations. Gravity anomalies sensing for deepwater created new bathymetric maps (e.g., the , square km
can be measured and exploration. Remote sensing Mertvyi Kultuk block, some km south of the giant Tengiz field)
mapped to give geoscientists is now considered critical to and used these maps to position a successful new drilling program
an idea of the size and such operations. It is also in one of the worlds most productive oil exploration areas.
depth of the geological extraordinarily cost-effective.
structures that caused them.

SOURCES AND ADDITIONAL READING CONTACT

Corbley, K. Landsat Images Petzet, G. Explorers Look


Assist in Mapping Caspian Toward Better Remote Sensing
Bathymetry. Oil & Gas Journal Data. Oil & Gas Journal, 3/9/98.
Offshore, 7/1/97.
Remote Sensing Terminology.
Detecting the Sleeping Giants of Journal of the Air and Waste U.S. Department of Energy
the Caspianfrom Space. Management Assoc., 11/91. Office of Fossil Energy
Offshore Magazine, 7/1/98. 1000 Independence Avenue, SW
Wagner, M. Radar Imaging
Koger, D., and R. Dodge. Geosat Matched with Gravity and Washington, DC 20585
Starts Up R&D on Exploration Bathymetry. Oil & Gas Journal Edith C. Allison
Sector. Oil & Gas Journal, Offshore, 5/1/98. (202) 586-1023
10/5/98. edith.allison@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
EXPLORATION

EXPLORATION
TECHNOLOGY Locations: Gulf of Mexico, West Africa, and other salt formations

Subsalt Imaging

SUMMARY BLUEPRINT ON TECHNOLOGY 4


Now that most easily Interpretation of formations hidden under layers of salt
accessible domestic allows more accurate siting of new reserves
resources have been dis-
covered, oil and gas Getting under the salt imaged by a combination of based on electrical resistance.
explorers are investigating
the promising but more
D EVELOPING IMAGES
of subsalt structures
poses a critical challenge to
advanced seismic source tech-
nology, complex mathemati-
cal modeling simulations, and
Because salts resistivity is
times greater than that of
surrounding sediments, the
inaccessible resources
exploration. Seismic imaging improved data processing and contrast between salt and sed-
beneath saltsheet forma-
is based on the transmission imaging techniques. DOEs iment resistance to low-fre-
tions in the Gulf of of sound waves and analysis public/private Natural Gas and quency electromagnetic radia-
Mexico. Large, irregular of the energy that is bounced Oil Technology Partnership tion from the earths ionos-
saltsheets may cover 60 back. But large amounts of has helped develop several phere makes it easier to map
percent of the slope
energy are lost when sound such technologies, among the extent and thickness of
waves pass through salt; thus, them improvements to the salt structures.
beneath the Outer
an extremely strong seismic speed and reliability of -D
Continental Shelf in the
source is required. Often seis- prestack depth migration, Stealth imaging breakthrough
Gulf and are found mic data are incomplete, pre- which creates a coherent image The latest technology used
throughout the world. venting explorers from by processing as many as to enhance seismic data is
Advances in 3-D imaging obtaining accurate readings of million records. -D full tensor gradient (FTG)
technologies are crucial to
a structures shape and thick- imaging, originally developed
ness. Traditional imaging Using electromagnetic by the U.S. Navy during the
providing reliable images
methods cannot deliver accu- resistance Cold War for stealth sub-
of what lies below the
rate readings when seismic As a part of this DOE part- marines. A -D gradiometer
thick layers. A 3-D sources are blocked by salt nership, the National survey takes real-time mea-
prestack depth migration squeezed into sheets between Laboratories and industry are surements of very small
method of seismic data sediment layers from an currently investigating the changes in the earths gravity
processing and an advanced
underlying salt base. The oil feasibility of marine magne- field, each relaying informa-
and gas sandwiched between totellurics, which is ideal for tion directly related to mass
marine magnetotellurics
the salt layers can only be subsalt exploration since it is and geometry of subsurface
technique are now making
it possible to image the
structure and thickness of ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
subsalt sediments.
More efficient exploration to pinpoint new oil Increased resource recovery due to better
Together, these technolo- and gas, reducing the financial risks reservoir characterization
gies provide sufficient
information to help locate Cost-effective exploration: an average 30-image Better, more careful siting of new drilling
seismic survey costs $500,000, while an MT sur- operations
new oil or gas deposits,
vey covering the same area costs about $50,000
estimated at 15 billion bar- Reduced drilling wastes as fewer wells are
rels of oil equivalent in the drilled
Gulf of Mexico alone.
EXPLORATION

CASE STUDIES

geological bodies. FTG pro- demonstrated a significantly Success in the Field


vides the depth and shape improved view of the Gulf s
of almost any geological subsalt geology, and FTG
structure, independent of promises to be an affordable United States
seismic velocities, allowing tool with which to enhance
geoscientists to develop existing -D seismic imaging
more complete images of technology in salt forma-
complex salt formations. tions around the world. Gulf of
Two field tests have Mexico

Beneath the Mahogany field salt


Drilling beneath the salt formations of the Gulf of Mexico, an
exploration play spanning , square miles south of the
Louisiana coast, began in the . A decade of unsuccessful
exploration followed, and it took advanced subsalt technologies to
break through the visual block. Nine subsalt discoveries were
drilled in the play from to , representing a phenomenal
success rate of percent. The centrally located Mahogany field
(the Gulfs first commercial subsalt play) was discovered in ,
and four wells were completed by , now flowing at a daily rate
of , barrels of oil and million cubic feet of gas. Mahogany
fields total reserves are estimated at million barrels of oil-
equivalent, and total recovery from this and the Gulfs other sub-
salt discoveries is estimated to be million energy equivalent
barrels, resources that would have remained inaccessible without
advanced subsalt imaging technology. A new discovery, the
Tanzanite field, is estimated to hold reserves of million barrels
of oil-equivalent. Due to the size of this discovery, subsalt explo-
ration in the Gulf is likely to remain active. Future subsalt technol-
ogy advances may be the key to discovering other large untapped
fields. As technology progresses, so will resource recovery.
SPE, 1993

SOURCES AND ADDITIONAL READING CONTACT

Camp, W., and D. McGuire. Earth View Associates. Subsalt Prutzman, J., and G. Coburn.
Mahogany Field, A Subsalt Exploration Methods Technology Pinpoints Base of
Legend: A Tale of Technology, Information Brochure. Salt. The American Oil & Gas
Timing, and Tenacity. Houston Reporter, 7/98.
Hoverston, G., et al.
Geological Society Bulletin,
Magnetotellurics for Petroleum
10/97. U.S. Department of Energy
Exploration. Case for Sea MT.
Office of Fossil Energy
Coburn, G. 3D Full Tensor
Minerals Management Service. 1000 Independence Avenue, SW
Gradient Method Improves
Gulf of Mexico OCS Region, Washington, DC 20585
Subsalt Interpretation. Oil & Gas
Subsalt Exploration.
Journal, 9/14/98. Edith C. Allison
Petzet, G. Anadarko Find, (202) 586-1023
Cold War Stealth Technology
Technology Gains Renew edith.allison@hq.doe.gov
Can Aid Seismic Interpretation.
Subsalt Hopes. Oil & Gas
Journal of Petroleum Trudy A. Transtrum
Journal, 8/17/98.
Technology, 1/98. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Canada (commercial) and United States (demonstration only)

AND
CO2-Sand Fracturing

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 5
Fracturing has been widely In widespread use in Canada, a stimulation technique
used since the 1970s to
now successfully demonstrated in the U.S. has outstanding
increase production from for-
results without formation damage
mations with low permeability
or wellbore damage. Unlike Using CO2 to fracture unconventional settings. produces wastes requiring
conventional hydraulic and oil and gas reservoirs More than one million frac- disposal.
acid fracturing techniques,
CO2-sand fracturing stimu-
R ECOMPLETING AND
fracturing an existing oil
or gas well to stimulate produc-
turing treatments were per-
formed by , and about
to percent of existing wells
An advanced CO2-sand frac-
turing technology overcomes
lates the flow of hydrocar-
tion that has declined over time are hydraulically fractured at these problems, and is prov-
bons without the risk of for- is significantly less costly than least once in their lifetime. ing a cost-effective process for
mation damage and without drilling a new well. First used in More than eight billion bar- stimulating oil and gas pro-
producing wastes for dispos- the mid-, fracturing treat- rels of additional oil reserves duction. First used in by
al. A mixture of sand prop- ments inject fluids under high have been recovered through a Canadian firm, the process
pants and liquid CO2 is forced
pressure into the formation, this process in North America blends proppants with
creating new fractures and alone. Yet conventional frac- percent liquid CO2 in a
downhole, where it creates
enlarging existing ones. turing technology has draw- closed-system-pressurized ves-
and enlarges fractures. Then Proppants (usually large- backs. The water- or oil-based sel at a temperature of F
the CO2 vaporizes, leaving grained sand or glass pellets) are fluids, foams, and acids used and a pressure of psi.
only the sand to hold the added to the fluid to support in traditional fracturing Nitrogen gas is used to force
fracture openno liquids, the open fractures, enabling approaches can damage the the resulting mixture through
gels, or chemicals are used
hydrocarbons to flow more formationfor instance, by the blender to the suction
freely to the wellbore. causing clay in the shale to area of the hydraulic fracture
that could create waste or
Fracturing is widely used to swelleventually plugging pumping units and then
damage the reservoir. Any stimulate production in the formation and restricting downhole, where it creates
reservoir that is water- declining wells and to initiate the flow of hydrocarbons. and enlarges fractures. The
sensitive or susceptible to production in certain Conventional fracturing also CO2 used in the process
damage from invading fluids,
gels, or surfactants is a candi-
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
date. The process has had
Eliminates hauling, disposal, and maintenance Using liquid CO2 creates long, propped frac-
widespread commercial
costs of water-based systems tures without formation damage
success in Canada, and
recent DOE-sponsored field Can significantly increase well productivity and No wastes requiring disposal are created
tests have demonstrated ultimate recovery
Conventional fracturing gels and chemicals,
commercial feasibility in the
CO2 vaporization leads to fast cleanup, whereas which may damage the flow path between
United States.
water-based fluids sometimes clean up slowly, wellbore and formation, are not used
reducing cash flow
Groundwater resources are protected
Recovery of valuable oil and gas is optimized
DRILLING AND COMPLETION

CASE STUDIES

vaporizes, leaving behind a CO2-sand fracturing treat- Success in the Field


dry, damage-free proppant ments average from ,
pack. The technology has to ,, depending on
gained widespread commer- well depth and rock stresses.
cial acceptance in Canada, While often higher-cost
where it has been used some than conventional methods,
, times. In the United these costs are offset by sav-
States, use has been limited ings realized through elimi-
to demonstrationsmany nating both swab rigs and
sponsored and cofunded by the hauling, disposal, and
DOEtaking place over maintenance costs associat-
the last two years in about ed with water-based sys-
wells in Kentucky, Ohio, tems. As in conventional Major areas of oil
and gas potential
Pennsylvania, Tennessee, fracturing, CO2-sand treat-
Texas, New York, Colorado, ments can significantly
and New Mexico. increase a formations pro- Successful DOE-sponsored field tests
duction and profitability. The U.S. Geological Survey estimates that to trillion
cubic feet of natural gas resources exists in unconventional set-
tings in the United States. Developing cost-effective advanced
METRICS fracturing techniques is crucial in our quest to recover these
resources. A number of field-test fracturing projects sponsored by
Results of fracturing technique tests DOE recently evaluated and proved CO2-sand technologys effec-
in Devonian Shales wells after tiveness in gas recovery. In the Devonian Shales in Kentucky, four
37 months of gas wells were stimulated with CO2-sand mixture, seven
with nitrogen gas and no proppant, and four with nitrogen foam
Increased Gas Production per Well and proppant. After producing months, wells stimulated with
0% 600% the CO2-sand process had produced four times as much as those
treated with foam, and twice as much as those stimulated with
CO2-Sand vs.
Nitrogen Gas 200% nitrogen gas. In central Pennsylvania, three gas wells were stimu-
(no proppant)
lated using CO2-sand fracturing. Immediately after fracturing,
CO2-Sand vs.
two of the wells exhibited production increases of , percent
Nitrogen Foam 400 % and percent. Over a year and a half later, production from
the wells had increased percent, percent, and per-
(with proppant)

Source: Arnold, Harts Petroleum Engineer International, January 1998 cent, respectively.

SOURCES AND ADDITIONAL READING CONTACT

Arnold, D. Dry Frac Damage Petroleum Technology Transfer Yost II, Mazza, and Remington II.
Control. PTTC Network News, Council. Needed: Demonstration Analysis of Production Response
2nd Quarter 1997. Sites for New Stimulation to CO2/Sand Fracturing: A Case
Process. PTTC Network News, Study. SPE 29191, 1994.
Arnold, D. Liquid CO2 and Sand:
2nd Quarter 1997.
An Alternative to Water-Based 1995 National Assessment of
U.S. Department of Energy
Stimulation Fluids. Harts Raymond, Johnson, et al. CO2 United States Oil and Gas
Office of Fossil Energy
Petroleum Engineer Energized and Remedial 100% Resources. USGS Circular 1118,
1000 Independence Avenue, SW
International, 1/98. CO2 Treatments Improve U.S. Government Printing Office.
Washington, DC 20585
Productivity in Wolfcamp
DOE, Office of Fossil Energy.
Intervals. Val Verde Basin, Elena S. Melchert
Fracturing Gas/Oil Formations
West Texas, SPE 39778, 1998. (202) 586-5095
with Reservoir Friendly
elena.melchert@hq.doe.gov
Carbon Dioxide and Sand.
Investments in Fossil Energy Trudy A. Transtrum
Technology. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Coiled Tubing

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 6
Continuous coiled tubing Successively better coiled tubing technologies drive
can dramatically increase improvements in cost, productivity, and efficiency of
the efficiency, profitability,
drilling operations, while reducing environmental impact
and productivity of drilling
for oil and gas. Whereas in A strong portfolio of benefits operating units in , usage about ,, but with
has grown to some units
conventional drilling oper-
ations, the drilling pipe P A RT I C U L A R LY VA L U -
able in sensitive environ-
ments such as Alaskas North
in , and many drilling
companies are now revising
coiled tubing and slimhole,
the same well would cost
, less.
consists of several jointed
Slope, coiled tubing technol- their rig portfolios.
pieces requiring multiple
ogy has far less impact on a Reduced working space
reconnections, a more drilling site than conventional In a variety of drilling appli- about half of what is required
flexible, longer coiled pipe equipment, in addition to cations, coiled tubing elimi- for a conventional unitis an
string allows uninterrupted performing drilling opera- nates the costs of continuous important benefit, as are
operations. A cost-effec- tions more efficiently and jointing, reinstallation, and reduced fuel consumption and
tive alternative for drilling
cost-effectively. Although the removal of drilling pipes. It is emissions. A significant drop in
first coiled tubing units were a key technology for slimhole noise levels is also beneficial in
in reentry, underbalanced,
built in the , only after drilling, where the combina- most locations. The noise level
and highly deviated wells, rapid technological advances tion can result in significantly at a ,-foot radius is
coiled tubing technology in the late did the tech- lower drilling costsa typical decibels, while at the same
minimizes environmental nology start to gain industry- ,-foot well drilled in radius a conventional rig has a
impacts with its small wide recognition. From southwest Wyoming costs -decibel level.
footprint, reduced mud
requirements, and quieter
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
operation. Quick rig set-
up, extended reach in hori-
Increased profits, in certain cases, from 24-hour Reduced mud volumes and drilling waste
rig set-up and faster drilling
zontal sidetracking, one- Cleaner operations, as no connections to leak mud
time installation, and Smaller drilling infrastructure and more
reduced crews cut operat- stable wells Reduced operations noise

ing costs significantly. For


No interruptions necessary to make connections Minimized equipment footprints and easier site
multilateral and slimhole restoration
or to pull production tubing
reentry operations, coiled
Reduced waste disposal costs Reduced fuel consumption and emissions
tubing provides the oppor-
tunity for extremely Less visual impact at site and less disturbance,
Reduced fuel consumption
profitable synergies. due to speedy rig set-up
Increased life and performance from new rig
designs and advanced tubulars, reducing Reduced risk of soil contamination, due to
operating costs increased well control

Better wellbore control


DRILLING AND COMPLETION

CASE STUDIES

Technology advances
in the 90s
Success in the Field
Dramatic advances have
recently brought new coiled At Lake Maracaibo field
tubing technology to mar- Advanced coiled tubing drilling is helping operators optimize
ket. For example, new resource recovery at Venezuelas Lake Maracaibo field. Baker
designs from leading Hughes INTEQs first-of-its kind Galileo II hybrid drilling barge,
drilling service companies containing -inch coiled tubing and slimhole drilling measure-
have eliminated coiled ment-while-drilling tools, drilled its first well at the end of .
tubing rigs guide arches; in It was the first time an underbalanced well had been drilled on
these new designs, eliminat- Lake Maracaibo, and it promises good results. Galileo IIs unique
ing the bending in the tub- design is also expected to significantly increase the life of its coiled
ing at the guide arch has tubing, ultimately reducing operating costs. Operating in a fragile
significantly increased its lake ecosystem presents unique waste management challenges,
life. The newest advance is and all drill cuttings and waste mud are transported back to shore
an electric bottomhole for disposal.
assembly offering immedi- Photo: WZI, Inc.

ate data feedback on bot-


tomhole conditions,
reduced coiled tubing METRICS

fatigue, maintenance of bit


speed independent of flow Field trials in the Netherlands Conventional drilling fluids volume com-
pared with coiled tubing volumes (m3)
rate, and improved reliabili- demonstrate environmental benefits 180

ty. New materials like 160


Fuel Consumption and Gas Emissions:
advanced titanium alloys Coiled Tubing vs. Conventional Rigs 140

and advanced metal-free Med Land Coiled Tubing


120

composites have improved Workover Drilling Drilling 100

the reliability, performance, Rig Rig Unit


80

corrosion-resistance, weight, Diesel m3/month 35 160 25


60

and cost-effectiveness of Gas CO2 3,293 15,055 2,122


40
Emissions CO 3.7 16.8 2.5
coiled tubing assemblies. In kg/day NOx 4.6 21 2.1 20

certain cases, titanium tub- HC 3.9 17.8 2.8 Conventional Coiled Tubing

ing offers an estimated reel- HC (Gas) 1.8 8.4 1.1


Conductor Tophole
ing cycle life to times
SO2 4.2 19.4 2.2
Intermediate Reservoir
SPE 27156, 1994
greater than steel. Completion

SOURCES AND ADDITIONAL READING CONTACT

Adams, L., and C. Overstreet. Faure, A., and J. Simmons. Schutz, R., and H. Watkins.
Coiled Tubing Facilitates Deep Coiled Tubing Drilling: A Means Titanium Alloys Extend
Underbalanced Workover. Oil & to Minimize Environmental Capabilities of Specialty
Gas Journal, 3/31/97. Impact. SPE Paper 27156, 1994. Tubulars Arsenal. The American
Oil & Gas Reporter, 9/98.
Berning, Isennock, and Coats. Furlow, W., Lake Maracaibos U.S. Department of Energy
Composites Extend CTs Depleted Fields Continue to Strunk, C. Slim Hole, Coiled Office of Fossil Energy
Applications. The American Oil Produce. Offshore Magazine, Tubing Combine to Enhance 1000 Independence Avenue, SW
& Gas Reporter, 9/98. 9/1/98. Well Economics. The American Washington, DC 20585
Oil & Gas Reporter, 2/97.
Electric Coiled-Tubing Drilling. Kunkel, B. Benefits Fuel CT Elena S. Melchert
Journal of Petroleum Growth. Harts Petroleum (202) 586-5095
Technology, 9/98. Engineer International, 7/97. elena.melchert@hq.doe.gov
Newman, K. Coiled Tubing
Technology Continues Its Rapid Trudy A. Transtrum
Growth. World Oil, 1/98. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Horizontal Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 7
Horizontal drilling targets Without any increase in environmental impact, horizontal
oil or gas in thin, tight drilling allows developers to reach reserves beyond the
reservoirs, reservoirs inac-
limits of conventional techniques
cessible by vertical drilling,
and reservoirs where hori- Breaking geologic barriers In the mid-, several sig- angle. Today, horizontal
zontal wellbores signifi-
cantly increase flow rates T HE CURRENT BOOM
in horizontal drilling is
due to rapid developments in
nificant technology advances
started breaking down these
barriers. Steerable downhole
wells are being drilled longer
and deeper, in more hostile
environments than ever before.
and recovery. Horizontal
wells maximize utilization
technology over the past two motor assemblies, measure-
decades. Although several ment-while-drilling (MWD) Horizontal drilling is now
of drilling sites and infra-
horizontal wells were success- tools, and improvements in conventional in some areas
structure. While vertical fully drilled between the radial drilling technologies and an important component
wells drain oil from a sin- and , these were limited were the breakthroughs need- of enhanced recovery pro-
gle hole and have limited to expensive - to -foot ed to make horizontal drilling jects. At any given time, hori-
contact with oil-bearing forays. Interest waned in such feasible. Short-radius technol- zontal drilling accounts for
rock, horizontal wells pen-
onshore applications after the ogy had been developed in the to percent of the U.S. land
development of hydraulic , the earliest curvature well count. The Austin Chalk
etrate a greater cross-
fracturing technology made technique used to drill laterals; field has been the site of over
section of the formation, vertical wells more productive. in the , long-radius tech- percent of the onshore
allowing substantially The offshore industry contin- nology allowed lateral dis- horizontal rig count since the
more oil to drain. A hori- ued to pursue horizontal placement away from the rig late , and still accounts
zontal well is drilled later- drilling, but the limitations of to penetrate the reservoir. for the majority of horizontal
ally from a vertical well-
the available equipment often Then, in the , medium- permits and rig activity in the
resulted in ineffective, expen- radius techniques permitted U.S. today. Thirty percent of
bore at an angle between
sive, and time-consuming re-drilling horizontal intervals all U.S. reserves are in car-
70 and 110. It can tap the drilling operations. from existing wellbores, and bonate formations, and it is
hydrocarbon supplies of a with this advance producers here that percent of hori-
formation without further could build rapidly to a zontal wells are drilled.
environmental distur-
bance, of particular value
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
in sensitive areas.
Increased recoverable hydrocarbons from a Less impact in environmentally sensitive areas
formation, often permitting revitalization of
previously marginal or mature fields Fewer wells needed to achieve desired level of
reserve additions
More cost-effective drilling operations
More effective drilling means less produced water
Less produced water requiring disposal and less
waste requiring disposal Less drilling waste

Increased well productivity and ultimate recovery


DRILLING AND COMPLETION

CASE STUDIES

Success in the Field Worldwide Horizontal Wells


Number of Horizontal Wells
3,000

2,750

2,500

2,250

2,000

1,750

1,500

1,250

1,000

750

Major areas of oil 500


and gas potential 250
0
Pre- 1988 1989 1990 1991 1992 1993 1994 1995 1996
Success in the Black Warrior Basin 1988

In , after six years of production, the Goodwin gas field in the Source: Oil & Gas Journal, November 23, 1998

Black Warrior Basin was converted to gas storage by the Mississippi


Valley Gas Co. Only conventional vertical wells had been drilled of , barrels. Success has spawned the drilling of nine other
in the thin ( feet), tight, abrasive formation. The operator horizontal wells here, and nearly others in geologically similar
successfully drilled and completed the first horizontal well in only fields in the basin. If successful in other depleted Dundee fields,
days, utilizing MWD and gamma ray tools, a short radius horizontal wells could produce an additional to million
motor, and a polycrystalline diamond bit. Overall costs approached barrels of oil, worth about million in tax revenues alone.
twice that of a conventional well in the field, but the deliverability
of the horizontal well was six times that of a vertical well. Since one METRICS
horizontal well is producing the equivalent of six vertical wells,
maintenance and operating costs are lower, and fewer meter runs, In the United States, according to a recent
flowlines, and other facilities are required. DOE study, horizontal drilling has improved:
Potential reserve additionsby an estimated 10 billion barrels of oil equivalent,
New reserves in the Dundee Formation nearly 2% of original oil-in-place
Only percent of the known oil located in the Michigan Basins The average production rationow 3.2:1 for horizontal compared to vertical
Dundee Formation had been produced when a DOE co-sponsored drilling based on field data, even though the average cost ratio is 2:1

horizontal drilling project brought new life to the formations Carbonate numbers are even betterproduction is nearly 400% greater than verti-
cal wells, yet costs are only 80% more
exhausted Crystal field. The new horizontal well now produces
nearly times more than the best conventional well in its field
barrels of oil a dayand boasts estimated recoverable reserves Source: U.S. Department of Energy and Maurer Engineering, Inc., 1995

SOURCES AND ADDITIONAL READING CONTACT

Cooper, S., and R. Cuthbertson. Horizontal Well Successfully Philips, C., and D. Clarke. 3D
Horizontal, Underbalanced Wells Drilled in Black Warrior Basin. Modeling/Visualization Guides
Yield High Rates in Colombia. Oil & Gas Journal, 7/22/96. Horizontal Well Program in
World Oil, 9/98. Wilmington Field. Journal of
Knoll, R. Buzzwords Can Lead to
Canadian Petroleum
Department of Energy. Using Poor Results. The American Oil U.S. Department of Energy
Technology, 10/98.
Horizontal Drilling to Give a & Gas Reporter, 9/98. Office of Fossil Energy
Michigan Oilfield New Life. Potter, N. 3D, Horizontal Drilling 1000 Independence Avenue, SW
Mason, R. Horizontal Drilling
Changing Clair Development Washington, DC 20585
Deskin, W. et al. Survey Shows Broadening Mindset, Opening
Economics. Offshore Magazine,
Successes, Failures of Horizontal New Possibilities. The American Elena S. Melchert
5/1/98.
Wells. Oil & Gas Journal, 6/19/95. Oil & Gas Reporter, 9/98. (202) 586-5095
Gas Research Institute. Natural Petroleum Council. The elena.melchert@hq.doe.gov
Measuring the Impact of Potential for Natural Gas in the Trudy A. Transtrum
Technology Advances in the United States, 12/92. (202) 586-7253
Gulf of Mexico. trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Hydraulic Fracturing

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 8
Routinely applied to over Assisting operators to bring new life to mature fields
half of U.S. gas wells and and make unconventional fields commercially viable
a third of oil wells,
hydraulic fracturing has Stimulating wells tions, such as coalbed map microseismic events and
to deliver more methane, tight gas sands, and predict the direction and
been proven to enhance
shape of fractures. New -D
well performance, mini-
mize drilling, and recover
F I R S T I N T RO D U C E D I N
, hydraulic fracturing
quickly became the most
shale deposits. Improvements
in fracturing design and qual-
ity control have enabled oper-
fracture simulators with
revised designs and real-time
otherwise inaccessible commonly used technique to ators to successfully apply feedback capabilities improve
resources. It makes the stimulate oil and gas wells, fracturing techniques in more prediction of results.
development of some low- ultimately enabling produc- complex reservoirs, hostile
permeability, tight forma- tion of an additional eight environments, and other Advanced breakers and
tions and unconventional
billion barrels of North unique production settings. enzymes that minimize the
American oil reserves that risk of formation plugging
resources economically
would otherwise have been New advances from large-volume hydraulic
feasible. When the flow of unrecovered. By , fracturing The DOE-led Natural stimulations are the latest
hydrocarbons is restricted had already been applied Gas and Oil Technology advances to protect the envi-
by formation characteris- nearly a million times. Each Partnership has promoted ronment and increase ultimate
tics, injecting pressurized year, approximately , many of this decades fractur- recovery. In addition, emerg-
fluids and solid additives
gas and oil wells are hydrauli- ing advances. These include ing technologies developed by
cally fractured. the use of air, underbalanced DOE and the Gas Research
can stimulate wells to
drilling, and new fracturing Institute, such as microseismic
increase production. Fluids Fracturing is generally used to fluids to reduce formation fracture mapping and down-
are pumped into the for- regain productivity after the damage and speed well clean- hole tiltmeter fracture map-
mation at pressure great first flow of resources dimin- up. Improved log interpreta- ping, offer the promise of
enough to fracture the ishes. It is also applied to ini- tion has improved identifica- more effective fracture diag-
surrounding rock. A prop-
tiate the production process tion of productive pay zones. nostics and greater ultimate
in unconventional forma- Improved borehole tools help resource recovery.
pant slurry follows, biode-
grading to sand proppant
that holds the fractures
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
open, allowing free pas-
sage of fluids to the well- Increased well productivity and ultimate recovery Optimized recovery of valuable oil and
gas resources
head. So successful has
Significant additions to recoverable reserves
this technology been that Protection of groundwater resources
the industry currently Greatly facilitated production from marginal
spends a billion dollars
and mature fields Fewer wells drilled, resulting in less waste
requiring disposal
annually on hydraulic
fracturing.
DRILLING AND COMPLETION

CASE STUDIES

Success in the Field

Major areas of oil


and gas potential

SPE, 1993

Increased profits from the once


declining Lost Hills field
Refined fracturing methods and improved quality control have In , Chevron and Schlumberger Dowell formed a partner-
brought increased productivity and profitability to a field that once ship aimed at improving fracturing efficiency, reducing costs,
resisted development. The Lost Hills field in California contains an and increasing productivity. One result is that multiple wells are
estimated two billion barrels of oil-in-place, but since its discovery now stimulated from fixed equipment locations. Since its
in it has produced only a fraction of its potential. The field implementation in late , this central site strategy has been
has very low permeability and it lacks a strong natural fracture net- used to fracture more than wells, using some million
work, which restricts the flow of resources. This makes the field dif- pounds of proppant. The strategy has lowered costs by reducing
ficult to produce at acceptable rates without fracture stimulation. personnel, well completion time, and equipment mobilization,
while improving environmental management and safety
Although hydraulic fracturing began in Lost Hills during the
controls. Along with fracture design changes, this has reduced
and , completion results were poor because of small prop-
overall fracturing costs by percent since . These efforts
pant volumes and inefficient fracture fluids. Between and
played a large part in the fields percent production increase
, Chevron initiated massive hydraulic fracture stimulation.
between and from , barrels to more than
Although productivity increased significantly, costs were high and
, barrels of oil per day.
the work was not as profitable as anticipated.

SOURCES AND ADDITIONAL READING CONTACT

The CER Corporation. Using the Ellis, R. An Overview of Frac Stewart, Stewart, and Gaona.
Rifle, CO, Test Site to Improve Packs: A Technical Revolution Fracturing Alliance Improves
Fracturing Technology, (Evolution) Process. Journal of Profitability of Lost Hills Field.
apollo.osti.gov/html/fe/cer.html Petroleum Technology, 1/98. Oil & Gas Journal, 11/21/94.

Diffusion of Advanced Jennings, A., Jr. Fracturing Swift, T., and P. Mladenka.
U.S. Department of Energy
Stimulation Technology in the FluidsThen and Now. Journal Technology Tackles Low-
Office of Fossil Energy
Petroleum Industry: A Case of Petroleum Technology, 7/96. Permeability Sand in South
1000 Independence Avenue, SW
History. Journal of Petroleum Texas. Oil & Gas Journal,
Longitudinally Fractured Washington, DC 20585
Technology, 3/98. 9/29/97.
Horizontal Wells Add Value in
Elena S. Melchert
Dual-Hydraulic-Fracturing Alaska. Journal of Petroleum Wolhart, S. New Initiatives in
(202) 586-5095
Technique Minimizes Proppant Technology, 3/97. Hydraulic Fracture Diagnostics.
elena.melchert@hq.doe.gov
Convection and Increases GasTIPS, Fall 1998.
Hydrocarbon Production. Journal Trudy A. Transtrum
of Petroleum Technology, 3/97. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Measurement-While-Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY 9
Measurement-while-drilling
High-tech tools that deliver real-time bottomhole data
(MWD) systems measure
prevent excessive formation damage and make drilling
downhole and formation
parameters to allow more
significantly more precise and cost-effective
efficient, safer, and more
More information for electromagnetic telemetry. Evaluating the formation
accurate drilling. These
better drilling Surface sensors and computer Prior to the spread of MWD
measurements can other-
wise be obtained only by
extrapolation from surface
M WD TECHNOLOGY
is critical as operators
seek to reach deeper and far-
systems then decode the
transmitted information and
present it as real-time data.
systems in the late , bot-
tomhole conditions were
monitored by time-consum-
measurements. MWD sys- ther for new hydrocarbon ing analysis of cuttings and
tems calculate and transmit resources. A real-time bit nav- In normal drilling environ- gas intrusion, and by after-
real-time data from the drill
igation and formation evalua- ments, MWD is used to keep the-fact wireline steering mea-
tion aid, MWD uses tools the drill bit on course. MWD surement that necessitated fre-
bit to the surface, avoiding
such as triaxial magnetome- is also valuable in more chal- quent interruptions for pipe
the time-lag between ters, accelerometers, and pres- lenging drilling environments, removal. Today, the continu-
occurrence and surface sure sensors to provide vital including underbalanced, ous flow of MWD informa-
assessment and significantly downhole data concerning extended-reach, deviated, and tion improves formation
improving drilling safety directional measurements, high-pressure, high-tempera- evaluation efforts as well as
and efficiency. Without this
pore pressures, porosity, and ture drilling. In underbal- drilling progress. Over succes-
vibration. This provides for anced directional drilling, sive periods, MWD data can
analysis of bottomhole con-
more effective geosteering MWD monitors the use of reveal dynamic invasion
ditions, it is sometimes and trajectory control, and gas injected to maintain safe effects, yielding information
necessary to abandon a safer rig operations. Novel operating pressure. In deviat- on hydrocarbon mobility, gas-
hole for a new start. MWD equipment transmits bottom- ed and horizontal wells, oil-water contact points, and
reduces both costs and hole information to the sur- MWD can be used to geolog- formation porosity. Future
environmental impacts
face by encoding data as a ically steer the well for maxi- advances in MWD technology,
series of pressure pulses in the mum exposure in the reser- such as MWD acousticalipers
because measurements and
wellbores mud column or by voirs most productive zones. with digital signal processing
formation evaluation occur
before formation damage,
alteration, or fluid displace- ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
ment have occurred. Of par-
Improved drilling efficiency and accuracy Less formation damage
ticular use in navigating
hostile drilling environ- Timely formation evaluation Reduced possibility of well blowouts and
ments, MWD is most fre- improved overall rig safety
Reduced operating costs and financial risks
quently used in expensive
Reduced volume of drilling waste as fewer
exploratory wells, and in Improved rig safety wells drilled overall
offshore, horizontal, and
highly deviated wells. Better wellbore control
DRILLING AND COMPLETION

CASE STUDIES

and DOE-sponsored interpretive software appli-


research into ultra-deep- cations, MWD is helping
Success in the Field
water MWD technologies, deepwater operators better
promise to enhance opera- forecast and measure a for-
tions even further. mations pore and fracture
pressures. More accurate China
Contributing dramatically to geopressure estimates can Taiwan
operational safety prevent dangerous well
Operators seeking to con- blowouts and fires. In the
trol drilling operations and unlikely event of a deep- Philippines
enhance rig safety in diffi- water blowout, MWD
cult environments such as equipment is a crucial tool
deepwater drilling find in assisting operators to drill
MWD a valuable tool. In and steer a relief well to South China Sea
combination with advanced regain control of the well.
Vietnam

Extended reach in the South China Sea


In the South China Sea, MWD technology was critical in helping
operators drill a -mile extended-reach well to a then world-record
horizontal displacement of nearly , feet, at a true vertical
depth of approximately , feet. It effectively steered the
well to access the most productive zones at a final hole angle of
. In combination with other advanced drilling and completion
technologies, MWD technology permitted operators to access this
otherwise uneconomical, remote offshore field, completing the
project in approximately days at a cost of million. As of
June , this once-bypassed field was producing , barrels
of oil per day.
SPE, 1993

SOURCES AND ADDITIONAL READING CONTACT

Duey, R. Maximizing While Kennedy, J. Fundamentals of Pressure-While-Drilling Data


Drilling. Harts Oil and Gas Drilling, Technology and Improve Drilling Performance.
World, 7/98. Economics. PennWell Publishing Journal of Petroleum
Co., Tulsa, OK, 1991. Technology, 2/97.
Greenberg, J. Managing Loss-of-
Control in Deepwater Drilling. Maranuk, C. Acoustic MWD Talkington, K. Remote South U.S. Department of Energy
Oil & Gas Journal, 4/1/98. Caliper Improves Accuracy with China Sea Reservoir Prompts Office of Fossil Energy
Digital-Signal Technology. Oil & Extended Reach Record. Oil & 1000 Independence Avenue, SW
Hall, G. Growth in the
Gas Journal, 3/2/98. Gas Journal, 11/10/97. Washington, DC 20585
Measurement-While-Drilling
Sector Continues. Oil & Gas Meehan, R., et al. Case Histories Elena S. Melchert
Journal, 9/16/91. Show Real-Time Information (202) 586-5095
Reduces Uncertainty. Oil & Gas elena.melchert@hq.doe.gov
Joseph, R. Special Techniques
Journal, 5/18/98.
and Equipment Reduce Trudy A. Transtrum
Problems. Oil & Gas Journal, (202) 586-7253
3/27/95. trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Modern Drilling Bits

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bl
Dramatic advances in drill Evolving bit technology allows operators to drill wellbores
bit technology have more quickly and with less environmental impact
improved drilling perfor-
mance significantly while The diamond success story insert-bit cutting structures, over the last years. As
cutting wastes and envi-
ronmental impacts.
F RO M U S E I N O N E
percent of total world-
wide drilling in , to an
and, although originally
developed for hard forma-
tions, polycrystalline dia-
materials technology,
hydraulics, and bit stability
continue to improve, so will
Although the choice of bit
estimated percent in , mond compact (PDC) bits drilling performance and envi-
represents only 3 percent
diamond drill bits, which use have proved their value in ronmental protection.
of the cost of well con- cutters consisting of a thick soft- and medium-hard for-
struction, bit performance layer of tungsten carbide per- mations too. Today, PDC bits Matching the bit to the
indirectly affects up to 75 meated with bonded dia- are most applicable in areas formation
percent of total well cost.
mond particles, have been with relatively soft formations By helping operators choose
one of the success stories of or where drilling is expensive, the best bit for the job,
Faster rates of penetration
the last years. Natural dia- such as offshore locations and computerized drill bit opti-
and greatly extended bit
monds, synthetic diamonds, remote wells. In parallel with mization systems have
life, the result of advances and diamond composites are PDC development, roller improved the way bits are
in materials technology, now routinely used within cone bits have also been being selected and used.
hydraulic efficiency, cutter improved. The These systems match an indi-
PDC Cutter Components
design, and bit stability, National Petroleum vidual formation to the most
Carbide substrate
Council estimates effective milled-tooth, tung-
now allow wells to be PDC layer
Braze joint that improvements sten carbide insert and PDC
drilled more quickly, more
PDC wafer
in drilling efficiency bit to complete the job for the
profitably, and with less PDC layer from advances such least cost per foot. They also
environmental impact. The as those in bit tech- prescribe other design para-
improvement to an opera- Carbide stub
Carbide
substrate nology have reduced meters such as hole gauge and
tors cost-efficiency from
Carbide cylinder
underlying drilling hydraulic requirements to
costs by about help determine optimal
these advances is striking.
Source: Petroleum Engineer International, 1993 3 percent annually cutting structure.
Today, selection of the
appropriate bit has
become critical both in ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
establishing the overall
Increased rates of penetration Reduced power use and resultant emissions
economics of field devel-
opment and in minimizing Fewer drilling trips due to greater bit life Less drilling waste
the environmental impacts
Reduced power consumption Reduced equipment mobilization and fewer rigs
of drilling.
Improved drilling efficiency and hence viability Less noise pollution
of marginal resources
Better wellbore control and less formation
damage
DRILLING AND COMPLETION

METRICS

0% 100%
Increases in diamond bit drilling
1978 1%
In 1978, approximately 1 percent of the total footage drilled worldwide was drilled
with diamond bits; in 1985, it was approximately 10 percent; by 1997, that figure
was an estimated 25 percent. Also, between 1988 and 1994, advances in PDC 1985 10%
technology increased the average footage drilled by over 260 percent, from
approximately 1,600 feet to 4,200 feet per PDC bit.
1997 25%

Source: Rappold, Oil & Gas Journal, 8/14/95

CASE STUDIES

Success in the Field Switching to new drill bits saves time and money
Using a specialized bit optimization system, Anadarko Petroleum
has demonstrated significant efficiency improvements. For exam-
ple, drilling time was reduced by to days in Algeria, with sav-
Iran Pakistan ings of , to ,; and a Mississippi project saved
Persian
Gulf days and ,. Ultimately, impacts on the environment were
Gulf of
U.A.E. Oman appreciably lessened.
Saudi
Arabia
Petroleum Development Oman found that rates of penetration
Oman
Arabian Sea
India dropped from feet per hour to under feet per hour when drills
using tungsten carbide inserts hit the hard Khuff Formation.
Yemen
Switching to a new generation PDC bit with carbide-supported edge
cutters resulted in a new rate of . feet per hour in the Khuff. The
Gulf of Aden
entire section was drilled in one run, at half the cost of the same sec-
tion in a similar well. Another well drilled in the comparable
Somalia Zauliayah field resulted in a rate of feet per hour at a cost of
per foot, nearly half the cost of drilling a comparable well in the area
with an earlier-generation bit.
Indian Ocean
When Chevron switched to new generation polycrystalline bits at its
Arrowhead Greyburg field in New Mexico, the rate of penetration
increased more than percent. Chevron had been experiencing
problems using -cone bits and thermally stabilized diamond bits.
Switching to PDC bits with curved cutters significantly increased
drilling efficiency, while reducing environmental impacts.

SOURCES AND ADDITIONAL READING CONTACT


Bit Design Key to Improved Locke, S. Advances Reduce Total Rappold, K. Industry Pushes Use
Performance. Journal of Drilling Costs. The American Oil of PDC Bits to Speed Drilling,
Petroleum Technology, 12/96. & Gas Reporter, 7/98. Cut Costs. Oil & Gas Journal,
8/14/95.
Diamond Enhanced Inserts Mensa-Wilmot, G. New PDC
Improve Roller-Cone Bits. Cutters Improve Drilling The Role of Bit Performance in U.S. Department of Energy
Journal of Petroleum Efficiency. Oil & Gas Journal, Drilling Efficiency. Supplement Office of Fossil Energy
Technology, 2/97. 10/27/97. to Petroleum Engineer 1000 Independence Avenue, SW
International. Washington, DC 20585
Drill-Bit Solutions for New Polycrystalline-Diamond-
Operational Constraints. Journal Compact-Bit Technology Proves Elena S. Melchert
of Petroleum Technology, 12/97. Cost-Effective. Journal of (202) 586-5095
Petroleum Technology, 12/97. elena.melchert@hq.doe.gov
Lee, M. New Bits Drill Faster,
Cheaper, Better. The American Trudy A. Transtrum
Oil & Gas Reporter, 4/98. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Multilateral Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bm
Multilateral drilling New lateral drilling developments provide dramatic returns
creates an interconnected for operators, with less waste, smaller footprints, and
network of separate, pres-
increased site protection
sure-isolated, and reentry-
accessible horizontal or From horizontal to permit wells to branch out Multilateral drilling is of
multilateral branching multilaterally, in certain cases greatest value in reservoirs
high-angle wellbores sur-
wellbores saving both time and money that:
rounding a single major
wellbore, enabling
drainage of multiple target
H O R I Z O N TA L D R I L L -
ing provoked a surge
of interest in the as a
compared to horizontal
drilling. In many cases, such
as deep reservoir production,
Have small or isolated
accumulations in
multiple zones
zones. In many cases, this way to contact more oil it is more efficient to create a
approach can be more reserves, penetrating a greater connected network than to Accumulate oil above the
cross-section of the oil-bear- drill multiple individual hori- highest existing perforations
effective than simple hori-
ing rock with a single well- zontal wellbores. Have pay zones that are
zontal drilling in increas-
bore and intersecting repeat- arranged in lens-shaped
ing productivity and
edly the fractures that carry pockets
enlarging recoverable oil to a producing well.
reserves. Often multi- Today, declining production, Are strongly directional
lateral drilling can restore flat prices, and heightened Contain distinct sets of
economic life to an aging
environmental awareness natural fractures
have led the exploration and
field. It also reduces Are vertically segregated,
production industry to devel-
drilling and waste disposal with low transmissibility
op advanced drilling and
costs. Today, in a wide completion technologies that
variety of drilling environ-
ments, both onshore and
offshore, from the Middle ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
East to the North Sea
Improved production per platform Fewer drilling sites and footprints
and from the North Slope
to the Austin Chalk, multi- Increased productivity per well and greater ulti- Less drilling fluids and cuttings
lateral completions are mate recovery efficiency
Protection of sensitive habitats and wildlife
providing dramatic returns
New life for marginally economic fields in
for operators. danger of abandonment

Reduced drilling and waste disposal costs

Reduced field development costs

Improved reservoir drainage and management

More efficient use of platform, facility, and crew


DRILLING AND COMPLETION

CASE STUDIES

Success in the Field


Iran Pakistan
Persian
Gulf Gulf of
[With advanced re-entry
Norway U.A.E. Oman
multilateral technology] we
Saudi
are seeing the potential to
Arabia
reduce by half the costs Arabian Sea
Oman India
associated with subsea
developments. In some Yemen
North
Sea cases, this will make what
Denmark
were previously marginal or Gulf of Aden
non-economic discoveries
economical.

ALI DANESHY Somalia


Vice President, Halliburton
United
Kingdom Indian Ocean
Netherlands
Germany

Norsk demonstrates the future New life for old wells:


of offshore drilling pentalateral drilling in the Middle East
A highly successful offshore project in Norway is showcasing the Mounting evidence demonstrates that multilaterial drilling can
reduced environmental impacts and increased economic benefits of bring new life to old wells. In the Arabian Gulf recently, a signifi-
multilateral completions. In March , Norsk Hydro a.s. and cant reduction in production that may have spelled well closure in
Halliburton Energy Services drilled the worlds first subsea multilat- the past was instead the stimulus to drill five lateral branches into
eral with reentry access in Norsks Troll field. The companies esti- new pay zones. The lateral wells were drilled in only days,
mate that the economic benefits will be percent greater than reaching some , feet of new producing formations. Since the
those from fixed platforms. By reducing the systems required to new zones consisted of relatively soft limestone layers separated
access the subsea reservoir, the project cuts both costs and impact from each other by dolomites, drilling presented few problems.
on the environment and leads the way for subsequent offshore Dramatically increased production rates covered costs in just six
drilling operations. days. In all, production increased . times as a result of the mul-
tilateral completions.

SOURCES AND ADDITIONAL READING CONTACT

Boone, L., F. Clausen, T. Halliburton Energy Services.


Birmingham, and N. Schappert. Multilateral Technology (MLT)
Horizontal Branches Reach Out Overview.
to Drain Reserves: Slim Hole
Taylor, R.W., and R. Russell.
Laterals Put New Twist on Field
Multilateral Technologies U.S. Department of Energy
Development. The American Oil
Increase Operational Efficiencies Office of Fossil Energy
& Gas Reporter, 7/98.
in Middle East. Oil & Gas 1000 Independence Avenue, SW
DeLuca, M. Multilateral Journal, 3/16/98. Washington, DC 20585
Completions on the Verge of
Mainstream. Offshore Magazine, Elena S. Melchert
1/97. (202) 586-5095
elena.melchert@hq.doe.gov
Halliburton Energy Services.
First Subsea Multilateral with Trudy A. Transtrum
Re-Entry Access. Press Release, (202) 586-7253
7/21/97. trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: DeepwaterGulf of Mexico, West Africa, North Sea, Brazil, others

AND
Offshore Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bn
Recent exploration success- Technology advances in dynamic positioning expand
es in deepwater plays in the opportunities for deepwater drilling with reduced
Gulf of Mexico are of crucial
environmental impact
importance in providing a
vital new domestic Deepwater opportunities Production from deepwater dynamic positioning systems,
resource. Technological
advances are increasing
T HE GULF OF MEXICO S
deepwater reservoirs
have become Americas new
wells is increasing too. In
, for example, less than
percent of the Gulfs total oil
in combination with
improved onboard motion
compensation systems, are
operators ability to take
frontier for oil and gas explo- production was from deepwater expanding the range of water
advantage of these finds, ration. Production potential wells. By , over percent depths and environmental
while reducing the dangers from proved and unproved of the Gulfs oil production conditions within which
and uncertainty inherent in reserves in deepwater areas is came from deepwater wells. drilling operations can be
deepwater operations. estimated to be roughly . Natural gas production from safely conducted.
Without such progress,
billion barrels of oil and . deepwater areas in the Gulf
trillion cubic feet of natural has also increasedfrom less Azimuthing thruster units,
much of the Gulfs
gas. Consequently, drilling in than percent of total pro- often retractable so as to enable
resources may remain the Gulf s Outer Continental duction in to nearly shallow water maneuvers, are
undeveloped. A major con- Shelf has increased greatly percent in . the backbone of the dynamic
cern for operators is the over the last 10 years. Today, positioning system. Ship-based
safety of deepwater deepwater drilling from per- Improving station keeping computers and satellite-linked
exploratory operations,
manent structures and wild- Dynamic positioning systems navigation units control the
cat wells is at an all-time compensate for the effects of vessels rudder, propellers, and
especially as the industry
high. In October , a wind, waves, and current, thrusters using input from
moves toward depths of record temporary and enabling mobile offshore various monitoring systems,
10,000 feet. To ensure permanent deepwater rigs drilling units to hold position such as gyrocompass wind
stability and efficiency at were drilling in water depths over the borehole, maintain- sensors, real-time differential
such depths, advanced greater than , feet, as ing within operational limits global positioning systems,
dynamic positioning
compared to only nine in lateral loads on the drill stem micro-wave positioning
. and marine riser. Improved systems, underwater sonar
technology is now being
used. This includes thruster
units and sophisticated
computer and navigation ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

systems to hold a new Minimized positioning and transit times for Less disruption to seafloor ecosystem
generation of drillships, deepwater exploration
Reduced environmental impacts due to
floating production, stor-
Reduced operating costs in deepwater explo- increased operational stability
age, and offloading sys-
ration operations
tems, and survey vessels on Enhanced deepwater operational safety
location without anchors or Improved access to deepwater and ultra-deep-
mooring lines. water resources that might otherwise have
remained undeveloped
DRILLING AND COMPLETION

beacons, and hydro-acoustic demand for dynamically Cost-effectiveness time of setting and remov-
beacons. If the wind or tide positioned vessels. The When permanent or ing mooring lines. Such
swell moves the ship from its harsher environments of disconnectable moorings flexibility, vital during hurri-
desired station, guided deeper offshore plays has become excessively difficult cane season, may ultimately
thrusters can automatically accelerated demand for or expensive, or when low- reduce operating costs.
hold the vessels orientation dynamically positioned cost fuel is available,
and position. They can also drillships, semisubmersible dynamically positioned Safety
move it to a new position in rigs, seismic survey vessels, systems may be highly cost- The precise positioning
the event of extreme weather. floating production, storage, effective. Given todays afforded by these systems
and offloading systems, technology, it would be contributes significantly to
A new equipment market pipelayers, shuttle tankers, practically impossible to both environmental protec-
The trend toward long- and standby support vessels. conduct ultra-deepwater tion and worker safety dur-
term, ultra-deepwater The benefits of dynamic exploratory operations ing offshore operations. The
exploratory operations has positioning include: without dynamic position- safety of operations involv-
substantially increased ing technology. ing diving support vessels,
deepwater drillships, or
Operational flexibility shuttle tankers, for instance,
These systems allow vessels is often enhanced by the
to move readily from one degree of operational
location to another during precision provided by
exploratory operations, dynamic positioning systems.
eliminating the cost and

METRICS

SPE, 1993
Steady drilling from dynamic positioning
The forces of wind, waves, and ocean currents cause exploration Todays advanced dynamic positioning technology enables drill-
and drilling support vessels to sway, yaw, and move off course. ships to maintain station with maximum excursion levels below 1%
To counter this, dynamic positioning technology stabilizes deep- of total water depth. At a water depth of 5,000 feet, for example,
water site equipment, allowing exploratory operations in waters these advanced systems are able to keep a 200-yard-long, 30-story-
too deep for conventional mooring systems. high drillship within 50 feet of station.

SOURCES AND ADDITIONAL READING CONTACT

Deepwater Drilling Driving DiSouza, Delepine, and Cordy. Harding, B. The Deepwater
Progress of Azimuthing An Approach to the Design and Drilling Rig Explosion - 1996-
Thrusters. Offshore Magazine, Selection of a Cost-Effective 1998: New Designs and
4/98. Floating Production Storage and Equipment for Water Depths
Offloading System. Offshore Over 3,500 ft. Offshore
Deepwater Surge Galvanizes DP
Technology Conference (OTC) Magazine, 7/1/98. U.S. Department of Energy
Power Sector. Offshore
7443, 1994. Office of Fossil Energy
Magazine, 1/97. Herold, A. Fourth Generation DP
1000 Independence Avenue, SW
Duhen, de Bonnafos, and System Set Up on Pipelay Unit-
DeLuca, M. Dynamic Positioning Washington, DC 20585
Rietveldt. A New Generation DP Accuracy of Deepwater Pipeline
Versus Mooring: Debate
Drillship for 10,000 ft Water Touchdown Product of Elena S. Melchert
Continues as Technology
Depths. Drilling Contractor, 9/98. Sophisticated Routing (202) 586-5095
Evolves. Offshore Magazine,
Trajectories. Offshore Magazine, elena.melchert@hq.doe.gov
10/98. Dynamic Positioning, Compact
3/95.
Power System Create New Life Trudy A. Transtrum
for Semisubmersible. Oil & Gas Portable Dynamic Positioning (202) 586-7253
Journal, 10/5/98. Systems Fill Special Need. trudy.transtrum@hq.doe.gov
Offshore Magazine, 7/97.
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Pneumatic Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bo
Pneumatic drilling is an Unlike conventional mud-based drilling, air drilling
underbalanced drilling significantly reduces or eliminates drilling fluid additives
technique in which bore-
and prevents formation damage
holes are drilled using air
or other gases as the cir- Protecting low-pressure a noncondensable gas in the open-hole completions, and
culating agent. In certain formations and maximizing circulating fluid system, in fluid-sensitive formations.
production underbalanced pneumatic It is an important tool in
cases this air drilling tech-
nique offers the promise
of mudless drilling. By
U NDERBALANCED
drilling offers signifi-
cant advantages over conven-
drilling can prevent difficul-
ties commonly encountered
when reservoir pressures are
drilling horizontal wells,
which must expose a large
amount of reservoir face to
using nitrogen, air, or tional systems in low-pres- lower than the hydrostatic be productive, and have
natural gas in place of sure or pressure-depleted for- pressure exerted by tradition- minimum damage from flu-
oil- or water-based muds, mations. Pressure overbal- al water-based drilling fluids. ids invasion. As horizontal
producers can both elimi-
ances in conventional Depending on the environ- drilling increases in popular-
drilling can cause significant ment, gas may be used alone ity, underbalanced pneumat-
nate drilling fluids that
fluid filtrate invasion, and or with water and additives. ic drilling will become more
need disposal and ensure
lost circulation in the forma- When drilling fluid is need- widespread, because it can
that drill cuttings are not tion. Expensive completions, ed for well control, gas is penetrate the reservoir with-
tainted by chemicals or decreased productivity, and mixed with lightweight out damaging the formation
oil. Although it is suitable high mud and mud-removal drilling fluids. or its productive capacity.
only for certain formation
costs can then plague drilling
operations, but these can be In general, pneumatic Air drilling techniques to suit
types and lithologies and
avoided by using underbal- drilling is used in mature Air dust drilling is a dry
can create potentially
anced conditions. By lower- fields and formations with technique that relies on the
explosive downhole condi- ing downhole pressure using low downhole pressures, in annular velocity of air to
tionsand is not therefore
likely to become wide-
spreadthis technique is ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

a very attractive environ- Substantially less fluid and waste requiring Greatly reduced drilling fluids and chemical-
mental prospect, offering disposal tainted cuttings
significant operational
Increased rates of penetration and longer Decreased power consumption and emissions
benefits.
drill bit life
Better wellbore control and less damage to
Indication and evaluation of productive zones formations
and more effective geosteering of the well by
monitoring flow of produced fluids Fewer workover and stimulation operations
needed
Potential elimination of waste pits gives access
to restricted areas Potential for smaller drilling footprints and less
impact on habitats, wildlife, and cultural
resources
DRILLING AND COMPLETION

CASE STUDIES

transport cuttings. It is A new waste management Success in the Field


typically employed in technology enables opera-
drilling dry formations, or tors to eliminate the earth-
when any water influx is en waste pits used to catch
low enough to be adsorbed effluent created while
by the air stream. If exces- drilling with an air- or air-
sive water influx precludes mist system. Liquids and
its use, air-mist drilling is solids in the effluent are
employed instead, using an separated and treated, and
air-injected mud that gases are exhausted. By
returns to the surface as eliminating the environ-
mist. Sometimes foam- mental risks associated with
drilling is required, using a pits, drillers can operate in
stable mixture of water and otherwise restricted areas,
compressed air with deter- such as State parks and Major areas of oil
and gas potential
gent and chemicals. When within city limits. Initial
the water influx is too great field tests indicate that this
to be removed through technology can handle con-
mist or foam, aerated mud tinuous liquid volumes of
Accessing new supplies in the Carthage field
drilling, a technique in barrels per hour and
Selected as the most viable technique to prevent damage to an
which air is injected into solid volumes of barrels
extremely low-pressure reservoir, pneumatic drilling made history
viscosified fluid or mud in per hour.
as the first air-drilled horizontal well in the Carthage field in
order to reduce the weight
Texas. Air drilling successfully increased gas recovery from
of the fluid column on the
depleted zones without wellbore skin damage, which would have
formation, combines the
restricted the reservoirs productive flow. Drilled in December
best properties of conven-
, the Pirkle well had by the end of April produced
tional and air drilling to
million cubic feet of gas at a rate of . million cubic feet per
provide an effective solution.
day. The well was drilled with compressed nitrogen into the
Cretaceous Frost A zone at , feet true vertical depth; it
produces through a ,-foot lateral well with bottomhole
pressure of psi. The operation successfully met the economic
criteria of producer OXY USA Inc., which had determined that
the wells production rate would have to at least double that of a
standard vertical well to be economically viable.

SOURCES AND ADDITIONAL READING CONTACT

Baker, L. Underbalanced Drilling Downey, R. On-Site Generated Rusnak, J. Apparatus Eliminates


with Air Offers Many Pluses. Oil Nitrogen Cuts Costs of Earthen Pits in Air-Drilling
& Gas Journal, 6/26/95. Underbalanced Drilling. Oil & Operations. Oil & Gas Journal,
Gas Journal, 2/24/97. 8/17/98.
Bennion, D. Underbalanced
Operations Offer Pluses and Elrod, J. Horizontal Air Drilling Teichrob, R. Low-Pressure U.S. Department of Energy
Minuses. Oil & Gas Journal, Increases Gas Recovery in Reservoir Drilled with Air/N2 in Office of Fossil Energy
1/1/96. Depleted Zone. Oil & Gas a Closed System. Oil & Gas 1000 Independence Avenue, SW
Journal, 6/30/97. Journal, 3/21/94. Washington, DC 20585
Carden, R. Air Drilling Has Some
Pluses for Horizontal Wells. Oil LeBlanc, L. Underbalanced Elena S. Melchert
& Gas Journal, 4/8/91. Drilling Solution for Wells with (202) 586-5095
Long Exposure. Offshore elena.melchert@hq.doe.gov
A Closed Circulating System for
Magazine, 8/1/95.
Air Drilling. Journal of Trudy A. Transtrum
Petroleum Technology, 2/98. (202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, onshore and offshore

AND
Slimhole Drilling

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bp
Improved slimhole drilling Technology advances in less invasive slimhole drilling
technology brings the twin increasingly valuable in exploration and production
advantages of environ-
mental protection and eco- Narrow boreholes prove dispelled these concerns, testing, combined with other
nomical results to oil and highly effective making slimhole an increas- technologies such as continu-
gas exploration and pro-
duction. (For example, a
P OTENTIALLY APPLICABLE
to more than percent
of all wells drilled, slimhole
ingly attractive option for
reservoir development. Today,
slimhole drilling is employed
ous coring, yields valuable
information for increasing
success rates in exploration.
conventional well drilled
drilling holds promise for throughout the lower-
with a 12.25-inch bit and a improving the efficiency and States and the Gulf of In the production arena,
5-inch drill pipe becomes a costs of both exploration and Mexico, especially in the improved slimhole drilling
slimhole when using a production. Although the Austin Chalk fields of South offers a viable means of recov-
4-inch bit and a 3.7-inch
technique was first used in Texas. Globally, slimhole ering additional reserves from
the oil and gas industry in the drilling has been used in a existing reservoirs, including
drill pipe.) Slimhole rigs
, its acceptance has been wide range of onshore and economically marginal fields.
are defined as wells in
hampered until recently by offshore settings. Resources in pay zones
which at least 90 percent concerns that smaller bore- bypassed in the original field
of the hole has been holes would limit stimulation As an exploration tool, slim- development can be cost-
drilled with a bit six inches opportunities, production hole drilling for stratigraphic effectively accessed through
or less in diameter.
rates, and multiple completions. testing provides geologists the existing wellbores, thereby
Advances in technology, with a clearer picture of the extending the productive life
Slimhole rigs not only
coupled with a growing local geography, refining seis- of the field.
boast a far smaller foot-
record of success, have mic interpretation. Such
print and less waste gen-
eration than conventional
operations, they can also ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
reduce operating costs by
Smaller drilling crews and less drilling time A slimhole rig occupies far less space than a
up to 50 percent. The tech-
mean up to a 50 percent reduction in costs conventional rigthe entire footprint including
nique is proving a low- site access can be up to 75 percent smaller
cost, efficient tool with Slimhole drilling is critical for adding millions of
barrels of oil to the Nations reserves The rig requires far less drilling fluid and pro-
which to explore new
duces far fewer cuttings for disposal
regions, tap undepleted Slimhole is feasible in a wide range of opera-
zones in maturing fields, tions and capable of reducing exploration and Reduced volume and weight of equipment
and test deeper zones in development costs around the United States favors use in sensitive environments, such as
existing fields. rainforests and wetlands, particularly in
helicopter-supported campaigns

Better wellbore control


DRILLING AND COMPLETION

CASE STUDIES

Success in the Field At the Austin Chalk fields


More than horizontal slimhole well reentries have been drilled
by Slim Dril International, demonstrating a successful way to dis-
cover and tap otherwise inaccessible reserves of domestic oil. The
company also used slimhole to deepen a conventional well to a
depth of , feet, using mud motors to test a producing field.
This advancing technology is extending the life of wells both at
Austin Chalk in south Texas and in the Gulf of Mexico, and could
potentially add millions of barrels of oil to our Nations reserves.

METRICS

Major areas of oil A Head-to-Head Comparison


and gas potential
At a drilling depth of 14,000 feet, here is how a slimhole rig with a 4-inch dia-
meter performs versus a conventional drilling operation with an 8.5-inch diameter:
In Wattenberg field
An eight-well field test conducted by HS Resources Inc. in Fuel consumption 75% less
in the Denver-Julesburg Basins Wattenberg field successfully Installed power 1,350 vs. 4,000 kilowatts
demonstrated that slimhole lateral wells could be drilled from Mud-pump power 330 vs. 3,200 horsepower
inside an existing .-inch cased producing vertical well. These Drillsite area 75% smaller
lateral wells with .- and .-inch liners are considered the
Mud cost 80% less
first lateral cementing operations of this size liner in the Rocky
Active mud volumes 50 vs. 1,500 barrels
Mountain region and the first reported lateral drilling in
Colorado using coiled tubing. The projects success led HS Rig weight 412,000 vs. 3,400,000 pounds
Resources to begin additional 150 vs. 500 helicopter lifts
slimhole drilling in and 12 vs. 65 Hercules loads
is significant for several reasons. 18 vs. 55 truckloads
Standard First, this approach allows pro-
Rig Drillstring weight: 37 vs. 150 tons
duction of additional reserves
Drilling crew size Staff of 3 or 4 vs. 6
with minimal impact on an
active agricultural area. Second, Camp size Staff of 30 vs. 80
it reduces operating costs by Bottom Line:
Slimhole commingling production from Potential well cost-savings of 50%
Rig both vertical and lateral Source: Nabors Industries .
wellbores.

SOURCES AND ADDITIONAL READING CONTACT

Boone, Clausen, Birmingham, Deliac, Messines, and Thierree. Millheim, Prohaska, and
and Schappert. Horizontal Mining Technique Finds Thompson. Slim Hole Drilling
Branches Reach Out to Drain Application in Oil Exploration. Past, Present, Future. SPE 30151,
Reserves: Slim Hole Laterals Oil & Gas Journal, 6/5/91. 1995.
Put New Twist on Field
Department of Energy. An U.S. Department of Energy
Development. The American Oil
Assessment of the Oil Resource Office of Fossil Energy
& Gas Reporter, 7/98.
Base of the United States, 1992. 1000 Independence Avenue, SW
Dachary, J. and R. Vighetto. Slim Washington, DC 20585
Gordon, T. The Skinny on
Hole Drilling Proven in Remote
Slimholes. Oil and Gas Investor, Elena S. Melchert
Exploration Project. Oil & Gas
1/93. (202) 586-5095
Journal, 6/22/92.
elena.melchert@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
DRILLING AND COMPLETION

DRILLING
TECHNOLOGY Locations: Worldwide, deepwater

AND
Synthetic Drilling Muds

COMPLETION
SUMMARY BLUEPRINT ON TECHNOLOGY bq
Drilling fluids are essential New synthetic drilling muds combine the performance
to carry cuttings to the of oil-based muds with the easier, safer disposal of
surface, maintain pressure
water-based muds
balance and stability in the
borehole, lubricate and Conventional versus However, they are often not imize drilling problems,
new muds technically feasible or cost- OBMs cannot be discharged
clear the drillstring and bit,
and prevent the influx of
other fluids. Todays
N E A R LY A L L W E L L S
less than , feet
and percent of deeper wells
effective in complex drilling
situations. As such, oil-based
muds (OBMs) are often the
on-site. At remote offshore
sites, operators must incur the
expense, logistical problems,
advanced offshore drilling are drilled with water-based drilling fluids of choice in and environmental risks of
practices include the use of muds (WBMs), making them deep, extended-reach, high- shipping OBM wastes back
synthetic-based muds the most commonly used angle, high-temperature, and to shore for disposal.
(SBMs), which combine the
muds both onshore and off- other special drilling environ-
shore. With a percent ments, greatly outperforming The development of syn-
higher performance of oil-
water base, WBMs and asso- WBMs. But their diesel or thetic-based muds (SBMs)
based muds (OBMs) and
ciated cuttings can typically mineral oil base means that was driven by industrys need
the lower toxicity of water- be discharged on-site. although they effectively min- for a drilling fluid with lower
based muds (WBMs). SBMs
are a high-performance,
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
environmentally friendly
Improved drilling speeds, lower operating costs, Lower concentration of inherent contaminants,
choice for complex offshore
and shorter completion times (versus WBMs) such as complex hydrocarbons (versus OBMs)
drilling environments.
Management of fluids and Reduced downtime from common drilling Safe discharge of drill cuttings (versus OBMs)
cutting wastes is a signifi- problems (versus WBMs)
Less waste than WBMs, as SBMs are reusable
cant responsibility for the
Minimal to no waste hauling and disposal costs
industry, and in remote Faster drilling, so reduced power use and air
(versus OBMs)
offshore areas can entail emissions (versus WBMs)
significant expense. Reduced drilling costs as SBMs can be
reconditioned and revised (versus WBMs) Smaller footprint, as SBMs facilitate extended-
Compared with OBMs, drill
reach and horizontal wells (versus WBMs)
cuttings from SBMs can be Increased access to resources by high-angle,
safely discharged in many extended-reach, and horizontal wells (versus Increased worker health and safetyvolume
WBMs) and toxicity of irritating vapors lower than OBMs
offshore areas, significantly
reducing disposal costs and Reduced air pollution because SBMs are not
environmental impacts. transported to shore for disposal (versus
OBMs)

Reduced landfill usage

Increased wellbore control (versus WBMs)


DRILLING AND COMPLETION

CASE STUDIES

disposal costs than OBMs performance parameters. Success in the Field


and higher levels of perfor- Current synthetic fluids fall
mance than WBMs. In gen- into several groups: polyal-
eral, SBM performance is phaolefins (PAOs), linear
comparable to that of alpha olefins (LAOs), inter- United States
OBMs, and in some cases nal olefins (IOs), fatty acid
superior. They are manufac- esters, and others.
tured by chemical synthesis
from basic building blocks Comparing costs
Gulf of
of relatively pure materials, Although more expensive Mexico
forming highly uniform on a per-barrel basis, SBMs
products. By varying the can reduce overall drilling
components and manufac- expenses. When measured
turing conditions, different against WBMs, SBMs can Cuba
SBMs can be created that shorten drilling time. Com-
exhibit varying rheological pared with OBMs, SBMs offer
properties and environmental lower disposal costs.
Mexico

METRICS

Advantages of synthetic muds as demonstrated


Proof in the Gulf
by Marathon Oil in the Gulf of Mexico A set of Gulf of Mexico wells with similar characteristics were the
Mud Cost Total Well scene for a comparative study of the relative merits of SBMs and
Footage Footage Cost in $ per Cost in Total WBMs. Marathon Oil drilled five wells with WBMs and three
Drilled per Day $ Millions Foot $ Millions Days
with SBMs, and found that SBM performs with greater overall
WBM Wells efficiency. For example, the SBM wells averaged feet per day
17,981 138 1.3 74 11.6 163
16,928 63 2.5 150 18.3 326 and days per well, compared to feet per day and days
17,540 82 9.6 214 per WBM well. Despite higher per-barrel costs, SBM resulted in
17,142 101 1.6 90.4 12.7 197
17,381 215 10.1 77 lower total drilling mud costs and downtime costs. Overall, total
drilling and completion costs for the SBM wells were in the range
SBM Wells
16,842 301 0.8 48 5.0 50
of . to . million per well, compared with . to .
18,122 275 1.7 94 7.8 75 million for WBM wells. Combined with significant increases in
17,250 431 0.8 45 3.7 33
productivity and decreased environmental impacts, these results
SPE 29737, 1995 proved that SBM was the better performer for these wells.

SOURCES AND ADDITIONAL READING CONTACT

Argonne National Laboratory. Furlow, W. Despite Limits, Veil, J., C. Burke, and D. Moses.
Removing Regulatory Barriers to Synthetic Fluids Still Best Bet for Synthetic-Based Drilling Fluids
Allow Wider Use of Innovative Deepwater. Offshore Magazine, Have Many Environmental
Drilling Fluids, 1/97. 1/98. Pluses. Oil & Gas Journal,
11/27/95.
Burke, C., and J. Veil. Synthetic- Furlow, W., New Cuttings U.S. Department of Energy
Based Mud Can Improve Drilling Treatment Taking on Recovery, Wood, T., and B. Billon. Office of Fossil Energy
Efficiency Without Polluting. Oil Environment Challenges Synthetics Reduce Trouble Time 1000 Independence Avenue, SW
& Gas Journal, 3/4/96. Recovering Costly Synthetic in Ultra-Deepwater Borehole. Washington, DC 20585
Fluids. Offshore Magazine, 7/98. Offshore Magazine, 3/98.
Candler, Rushing, and Elena S. Melchert
Leuterman. Synthetic- Legendre Zevallos, M., et al. (202) 586-5095
Based Mud Systems Offer Synthetic-Based Fluids Enhance elena.melchert@hq.doe.gov
Environmental Benefits Over Environmental and Drilling
Traditional Mud Systems. SPE Performance in Deepwater Trudy A. Transtrum
25993, 1993. Locations. SPE 35329, 1996. (202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Acid Gas Removal


and Recovery

SUMMARY BLUEPRINT ON TECHNOLOGY br


Before natural gas can be Improved technology and practices sweeten sour gas for
transported safely and pipeline use and achieve nearly 100 percent sulfur recovery,
economically, hydrogen
greatly reducing air emissions
sulfide (H2S), a highly poi-
sonous acid gas, and other Sweetening natural gas tank and used as fuel gas or uses a variation of this
acid compounds such as
carbon dioxide (CO2) must
A RECENT GAS RESEARCH
Institute survey concluded
that approximately percent
sold. Process efficiency can be
optimized by mixing different
types of amine to increase
process. Typically, the acid gas
feed is partially oxidized to
produce SO2, which is then
be removed from the raw
of the raw natural gas produced absorption capacity, by catalyzed with the remaining
gas stream in order to in the lower- States contains increasing the amine concen- H2S to produce elemental
meet pipeline sales con- unacceptable quantities of tration, or by varying the sulfur, of which approximately
tract specifications. Sulfur H2S, CO2, or both. To sweet- temperature of the lean to percent is recovered
recovery plants are used
en the high acid content amine absorption process. for sale. Most Claus plants
sour gas, it is first pre- contain two or three catalytic
in tandem with acid gas
scrubbed to remove entrained Recovering sulfur stages to enhance recovery. To
removal (sweetening)
brine, hydrocarbons, and Once acid components have reach higher recovery levels, a
operations to avoid emit- other substances. The still been removed from the gas sub-dewpoint Claus process is
ting unacceptable quanti- sour gas then enters an stream, sulfur recovery plants employed, which operates at
ties of sulfur compounds absorber, where lean amine can minimize sulfur emis- a lower temperature, causing
to the atmosphere.
solution chemically absorbs sions and maximize recovery sulfur condensation and
the acid gas components, as of elemental sulfurenviron- higher recovery. A tailgas
Improvements in gas
well as a small portion of mental regulations commonly cleanup unit is required to
sweetening, in conjunc-
hydrocarbons, rendering the require sulfur recovery levels obtain sulfur recovery levels
tion with advanced sulfur gas ready for processing and well over percent. The as high as . percent. This
recovery technologies, sale. An outlet scrubber Claus sulfur recovery process, converts the sulfur com-
make it possible to practi- removes any residual amine, first developed over years pounds in the tailgas back to
cally eliminate noxious
which is regenerated for recy- ago, is still the most widely H2S, then transfers it to a
cling. Hydrocarbon contami- used process today. Between low-pressure amine sweeten-
emissions and recover
nants entrained in the amine and percent of the total ing unit, which recycles the
nearly all the acid gas
can be separated in a flash sulfur recovered worldwide H2S with some CO2 to the
streams elemental sulfur
for later sale or disposal.

ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

Increased access to sour natural gas resources Improved air quality through increased sulfur
recovery
Sale of recovered sulfur as a commodity
PRODUCTION

CASE STUDIES

Claus unit for reprocessing. example, where operators Success in the Field
In most sulfur recovery have typically flared recov-
processes, a tailgas thermal ered acid gases if unable to North Sea
oxidizer incinerates nearly recover sulfur economically,
all remaining sulfur com- acid gas is now being dis-
pounds and other contami- solved in oil field produced
nants before venting it to water at the surface and
the atmosphere. injected into subsurface for- Atlantic Ocean
mations. This practice, Scotland
Alternative acid gas although still being demon-
disposal methods strated, potentially offers
In cases in which it is not producers a low-cost, envi-
economically feasible to ronmentally sound acid gas Ireland

recover elemental sulfur for disposal technique when sul- England


sale, industry is developing fur recovery is not economic.
advanced acid gas disposal
techniques. In Canada, for The Scott field experience
Scott field, miles northeast of Aberdeen, Scotland, is the
United Kingdoms largest offshore project this decade.
Recoverable reserves are estimated at million barrels of oil and
billion cubic feet of associated gas. In addition to subsea facil-
ities, the development has twin connecting steel platforms,
including a process/drilling platform, drilling and gas treatment
modules, and a flaring unit.
Developer Amerada Hess Ltd. realized that offshore production
could begin several months before availability of permanent
onshore gas processing facilities at Mobil North Sea Ltd.s
St. Fergus terminal, which was scheduled to come on-line on
April 1, . To permit early production, temporary gas sweeten-
ing equipment was installed in April to attain pipeline speci-
fications. A single, fixed-bed reactor sweetening unit enabled H2S
content to be reduced by nearly percent. By the middle of
SPE, 1993
October, the Scott field development was producing, treating,
Aerial view of pipeline transporting recovered sulfur to market and exporting gas, approximately five months ahead of schedule.

SOURCES AND ADDITIONAL READING CONTACT

Kopperson, D., et al. Injecting McIntyre, G., and L. Lyddon. Temporary Sweetening Unit
Acid Gas with Water Creates Claus Sulphur Recovery Aids Early Oil, Gas Production.
New Disposal Option. Oil & Gas Options. Petroleum Technology Oil & Gas Journal, 93:7, 2/13/95.
Journal, 8/3/98. Quarterly, Spring 1997.
Towler, G., et al. Improved
Kopperson, D., et al. Two Cases Skinner, D., et al. Amine-Based Absorber-Stripper Technology U.S. Department of Energy
Illustrate Acid Gas/Water Gas Sweetening/Claus Sulfur for Gas Sweetening to Ultra-Low Office of Fossil Energy
Injection Scheme. Oil & Gas Recovery Process Chemistry and H2S Concentrations, 1000 Independence Avenue, SW
Journal, 8/10/98. Waste Stream Survey. Gas Proceedings of the Seventy- Washington, DC 20585
Research Institute, 1995. Sixth Gas Processors Association
Lunsford, K., and J. Bullin. Ralph A. Avellanet
Annual Convention, 1997.
Optimization of Amine Spears, M., et al. Converting to (202) 586-8499
Sweetening Units. Proceedings DEA/MDEA Mix Ups Sweetening Wichert, E., and T. Royan. Acid ralph.avellanet@hq.doe.gov
of the 1996 American Institute of Capacity. Oil & Gas Journal, Gas Injection Eliminates Sulfur
Trudy A. Transtrum
Chemical Engineers Spring 8/12/96. Recovery Expense. Oil & Gas
(202) 586-7253
National Meeting, 1996. Journal, 4/28/97.
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Artificial Lift Optimization

SUMMARY BLUEPRINT ON TECHNOLOGY bs


As reservoir pressure Reduced emissions during production and increased
declines, natural processes productivity result from increasing the efficiency of the
no longer push the oil to
systems that raise oil to the surface
the surface. Artificial lift
technology, which includes Practical measures with and practices have improved production tubing stream,
sucker-rod pumps, electri- attractive environmental and efficiency in recent years. allowing liquid hydrocarbons
cal submersible pumps, productivity paybacks Real-time data collection, to be carried to the surface.
hydraulic jet pumps,
plunger lifts, progressing
S UCKER-ROD PUMPS,
the most prevalent form
of artificial lift, use arm-like
automation, and control
techniques now allow opera-
tors to monitor pumping
Gas lift is commonly used
when natural gas is readily
available, and is especially
cavity pumps, and gas lift
devices to provide up-and- performance and downhole prevalent offshore. Each gas
systems, is now used to down motion to a downhole conditions continuously, and lift well has an optimum
produce some 65 percent pump. Such rod pumping, to control operations accord- injection rate and pressure.
of all oil. Performance of most effective in relatively ingly. Variable-speed motors Since the injected gas raises
artificial lift systems has shallow and low-volume tailor pumping operations to the back pressure in the flow
wells, can be optimized to changing conditions. New line leading to the fields sepa-
been optimized through
increase lifting efficiency and low-profile rod pumps are ration and processing facili-
recent innovations in
minimize energy consump- attractive options in sensitive ties, back pressure in one well
artificial lift equipment, tion. Surface and downhole urban, residential, and agri- affects all wells sharing com-
improved operational energy losses can be reduced cultural areas, as well as on mon flow lines. Using
design and parameters, by adjusting key design para- crowded offshore platforms. advanced modeling tech-
and real-time data collec- meters like pumping mode niques to develop models of
selection, counterbalancing Gas lift, another common multiflow characteristics and
tion, automation, and con-
(to balance loads on the gear form of artificial lift, pumps to optimize parameters, oper-
trol technologies. System
box during the pumping natural gas down the wells ators today can design com-
optimization not only cycle), and rod string design. annulus and injects the gas plex gas lift systems that max-
maximizes production into the production tubing imize production from all
efficiency, but can also A number of other advanced near the bottom of the well. wells in a network, given the
decrease on-site power artificial lift technologies The gas expands within the systems constraints.
use and extend equipment
life. Results include
improved profitability, ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
reduced workover wastes, Enhanced efficient production from Increased equipment life and fewer failures
and lower air emissions. existing wells result in less workover and recompletion oper-
ations, reducing the volume of workover fluids
Lower equipment maintenance costs and other wastes

Lower on-site power consumption and costs Reduced air emissions due to lower power
consumption
PRODUCTION

CASE STUDIES

Success in the Field

Optimizing artificial lift in Oman also fitted with electronic instruments to measure
For Petroleum Development Oman (PDO), lift-gas injection pressure and flow, and tubing-
real-time automation and optimization software head and casinghead pressures. Ten months of
was the key to increasing production by some data were used to adjust lift rates, valve settings,
five percent, while saving million annually. and completion strings as necessary. As a result,
Power consumption was reduced and the mean PDO optimized wells in real-time, achieving a
time between pump failures was increased by five percent increase in oil production and a
percent. percent reduction in the volume of lift gas used. So
successful was the pilot effort that PDO decided
PDO used the Shell Oil Foundation System
to extend the program to the entire field.
(SOFS) to monitor, control, and optimize over
, wells and production facilities, including
both beam-pump and gas lift operations. It col- Iran Pakistan
lected load, position, and operational data from Persian
individual beam pumps and then modeled Gulf Gulf of
downhole conditions. The system enabled U.A.E. Oman India
pumps to be remotely started, stopped, and Saudi
Arabia
adjusted, providing an on-line tool to evaluate Arabian Sea
Oman
and optimize pump designs and predict pump
Yemen
performance.
SPE, 1993
PDO also applied the SOFS to gas lift wells in Gulf of Aden
Optimization of sucker-rod the Yibal field, creating gas lift performance mod-
pumping can increase production els for each of wells, matching them to actual
efficiency and minimize field measurements, and using the resulting per- Somalia
energy consumption. formance curves to calculate optimal production Indian Ocean

rates for given lift-gas availability. In a pilot


demonstration, wells in the Yibal field were

SOURCES AND ADDITIONAL READING CONTACT

Almeida, A., and I. Slobodcicov. Dutta-Roy, K. Simulation Podio, A. Total Well


Continuous Gas Lift Perfor- Approach Improves Gas Lift. Management. Harts Oil &
mance Analysis. World Oil, 9/98. The American Oil & Gas Gas World, 8/98
Reporter, 6/97.
Copelin, K. New Techniques Lift Schaible, B. New Artificial Lift
Revenues. Harts Oil & Gas Lea, J., and H. Winkle. Whats Technologies Enhance U.S. Department of Energy
World, 8/98. New in Artificial Lift Parts I and Production Economics. The Office of Fossil Energy
II. World Oil, 3/98 and 4/98. American Oil & Gas Reporter, 1000 Independence Avenue, SW
Cramer, R., et al. Real-Time
6/98. Washington, DC 20585
Automation Optimizes Lekic, O., and G. Watt. System
Production Economies in Oman. Approach Optimizes Gas Lift. Takacs, G. Improved Designs George Stosur
Oil & Gas Journal, 11/24/97. The American Oil & Gas Reduce Sucker-Rod Pumping (202) 586-8379
Reporter, 6/98. Costs. Oil & Gas Journal, george.stosur@hq.doe.gov
10/7/96.
Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide onshore

Coalbed Methane Recovery

SUMMARY BLUEPRINT ON TECHNOLOGY bt


Only 30 years ago, coalbed Technology has reduced greenhouse gas emissions by
methane was viewed pri- transforming coalbed methane into an energy resource
marily as a hazard by the
mining industry. To ensure Producing coalbed methane methane sites often require Capturing coal mine emissions
mine safety, ventilation and
degasification systems
L A RG E A M O U N T S O F
methane are stored with-
in coals internal structure.
substantial initial dewatering
to reduce reservoir pressure,
although produced water
Reduction in reservoir pres-
sure during underground
mining operations releases
emitted this gas to the
Most coalbeds are aquifers, in tapers off as methane coalbed methane into the
atmosphere. Methane is which water pressure holds production increases. mine. To ensure mine safety,
now considered a potent the gas in an adsorbed state. Produced water disposal this methane is typically vent-
greenhouse gas thought to To produce the methane, presents major economic and ed into the atmosphere in sig-
contribute to global warm-
water must be pumped from environmental challenges for nificant volumesan EPA
the coal seams to decrease operatorsthese costs alone profile of underground
ing. It is also a valuable and
reservoir pressure and release can determine the feasibility mines in indicated that
significant resource with
the gas. After desorption from of coalbed methane projects. they emitted an estimated
potential recoverable the coal matrix, the gas dif- In areas such as Alabamas billion cubic feet of methane.
domestic quantities esti- fuses through the coal beds Black Warrior Basin, pro- But technological advances,
mated at 40 to 60 trillion cleats and fractures toward the duced water can be used for along with utility industry
cubic feet. Since the 1970s,
wellbore. irrigation or treated and dis- restructuring, utility offset
charged into surface waters. projects, and green pricing,
Federal tax credits, inten-
Some coal seams are too deep In regions where these waters are motivating operators to
sive government and indus-
to be profitably mined, but are more saline, they are add methane recovery units
try R&D efforts, and rapid methane production may be reinjected into subsurface to their ventilation and
technology growth have feasible. In these cases, opera- geological formations, or in drainage systems. Also, the
motivated improvements in tors drill into the coal seam, some cases recycled in frac- U.S. Environmental
coalbed reservoir character-
insert production piping, and turing applications. In the Protection Agencys voluntary
then perforate opposite the future, emerging technologies Coalbed Methane Outreach
ization, reservoir engineer-
target zone. Typically, the using evaporation, reverse Program is assisting coal mine
ing, and completion tech-
reservoir is then hydraulically osmosis, ion exchange, and operators to identify and
nology. These advances fractured to enhance natural wetlands construction exploit ways to recover and
have spurred coalbed fractures or create new ones. promise more cost-effective use or sell methane. As a
methane production and Such stand-alone coalbed water management. result, coal mine methane
reserve growth, making this
unconventional resource a
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
significant component of
Lower operating costs and increased profitability Significantly reduced methane emissions
our domestic natural
if recovered gas can be used to fuel on- or off-site
gas supply. Optimized recovery of valuable natural
facilities or to generate electricity for site use or
sale gas resource

Depending on quality, recovered gas can be


marketed through pipeline sales
PRODUCTION

CASE STUDIES

recovery has risen more than Success in the Field


percent since .

As technology improves, coal


mine methane recovery is
likely to increase. Several pro-
totype technologies for using San Juan operators are also field testing two new
low and variable quality coal enhanced coalbed methane (ECBM) recovery
mine methane are under technologiesdisplacement desorption with
demonstration. In the UK, an injected carbon dioxide (CO2) and partial pres-
operator is recovering sure reduction with injected nitrogen. Amoco
methane from poorly sealed successfully conducted the first nitrogen flooding
vent holes in abandoned field test in at its Simon U- well, increas-
mines. In the United States, ing production fivefold in one year. At Amocos
DOE-sponsored field trials in Tiffany Project, million cubic feet of nitrogen
recent years have focused on is injected daily into injection wellsthe
recovering gob gas. Coalbed methane areas largest commercial demonstration of this technol-
ogy to date. Since full-scale injection began
January , , total gas production from pro-
METRICS duction wells has increased from million cubic
Coalbed methane production Enhanced recovery in the feet to million cubic feet per day. Furthermore,
growth in the United States San Juan Basin
Burlington Resources is testing CO2 flood tech-
Several advanced technologies are in use in the
Billions cubic feet (Bcf) nology at a four-well project at its Allison Unit,
San Juan Basin of northwest New Mexico and
with encouraging preliminary results.
southwest Colorado. In the overpressured, highly
2,000
permeable San Juan Basin fairway, open hole cav- In a recent study outlining promising technolo-
1,400
Bcf* itation completions are outperforming conven- gies for reducing greenhouse gas emissions, U.S.
1,090 Bcf* tionally cased and fractured completions by fac- National Laboratory directors concluded that
Bcf
tors of three to seven. In this technique, repeated coalbed sequestration technology is critical. For
6 Bcf high-rate, high-pressure injections of air-water example, future technology could inject CO2
1983 1997 2010 2020 mixtures into the coal seam are followed by rapid from a powerplant stack into coal seams to
blowdown. This promotes sloughing of coal into enhance coalbed methane production, then cycle
* Estimates assume high
the wellbore, which increases its radius and the methane back to fuel or co-fire the plant,
technology progress. induces tensile and shear fractures. thereby eliminating significant CO2 emissions.
Source: Energy Information Administration;
Kuuskraa; Gas Research Institute

SOURCES AND ADDITIONAL READING CONTACT


Coalbed MethaneAn Untapped Kuuskraa, V. Outlook Bright for Stevens, S., J. Kuuskraa, and
Energy Resource and an Environ- U.S. Natural Gas Resources. Oil & R. Schraufnagel. Technology Spurs
mental Concern. U.S. Geological Gas Journal, 4/13/98. the Growth of U.S. Coalbed
Survey, Fact Sheet FS-019-97, 1997. Methane. Oil & Gas Journal, 1/1/96.
Saulsberry, J., R. Schraufnagel,
CO2 Utilization Technology Eyed and P. Schafer, eds. A Guide to United States Department of U.S. Department of Energy
for Development. Oil & Gas Coalbed Methane Reservoir Energy (National Laboratory Office of Fossil Energy
Journal, 3/2/98. Engineering. Gas Research Directors). Technology 1000 Independence Avenue, SW
Institute, 1996. Opportunities to Reduce U.S. Washington, DC 20585
Environmental Protection Agency.
Greenhouse Gas Emissions, 1997.
Identifying Opportunities for Shirley, K. Producers in Rocky Ralph A. Avellanet
Methane Recovery at U.S. Coal Mountains Target Production Williams, P. Throughout the (202) 586-8499
Mines: Draft Profiles of Selected Increases. The American Oil & Gas Continental U.S., Emerging Coalbed ralph.avellanet@hq.doe.gov
Gassy Underground Coal Mines, Reporter, 7/98. Methane Plays Are Commanding
Trudy A. Transtrum
1997. Industry-Wide Respect. Oil and Gas
(202) 586-7253
Investor, 11/98.
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Rocky Mountains, Northern Great Plains, and Canada

Freeze-Thaw/Evaporation

SUMMARY BLUEPRINT ON TECHNOLOGY bu


A new freeze-thaw/evapo- New approach promises substantial reductions in
ration process purifies pro- produced water volume and associated environmental risks
duced waters from oil and
gas production operations From wastewater to from , to $1 million Recovery Act nonhazardous
by separating out dissolved beneficial by-product each. Water handling costs waste provisions as well as by
solids, metals, and chemi-
cals. These typically brack-
P RODUCING WELLS
generate an average of six
or seven barrels of produced
usually increase as a field
matures, eroding profit mar-
gins. Most oil fields lose eco-
the Clean Water Act and the
Safe Drinking Water Act.
Through cost-effective freeze
ish waters can be made
water per barrel of oil. This nomic viability when the crystallization and evaporation
suitable for beneficial use, ratio generally increases as the ratio is between : to :, processes, they can be sepa-
significantly lowering field matures, and it may rise even if they still hold pro- rated into fresh water,
environmental risks and as high as : for marginally ducible resources. Water- concentrated brine, and solids.
furthering resource man-
productive wells. Due to its handling costs are often the
sheer volume, the near bil- main factor leading to well
agement. Initial field tests
lion barrels of wastewater gen- abandonment and may make
indicate that, under spe-
erated by exploration and pro- development of unconven-
cific climatic and opera- duction activities annually is a tional resources, such as
tional parameters, the matter of potential environ- coalbed methane, economi-
freeze-thaw/evaporation mental concern. cally unfeasible.
process is highly effective.
Produced water handling, Although not considered haz-
In these cases, the volume
treatment, and disposal are ardous waste under existing Photo: Hart Publications, Inc., and Gas
of produced water can be
expensive. Class II wells for Federal legislation, produced Research Institute

reduced by 80 percent if it enhanced oil recovery or sub- waters are governed by Start-up of freezing operations
is frozen until its solids- surface disposal wells cost Resource Conservation and
laden brine separates, and
the resulting purified water
thawed and drained off for ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
use or discharge. The iso-
A low-cost, energy-efficient method of purifying Produced water volume requiring disposal
lated pollutants, which
produced water volumes greater than 500 bbl/day reduced by 80% in preliminary field tests
can include heavy metals
and naturally occurring Reduction of water treatment and disposal costs. Creation of fresh water to enhance agricultural
DOE-supported field tests in the San Juan Basin development in the arid western United States
radioactive materials, are
estimate treatment costs of 25 to 60/barrel,
then disposed of separately.
compared to current disposal costs of about
For volumes greater than $1/barrel in New Mexico
500 barrels per day, dis-
posal costs and environ- Extended life for mature fields in certain regions

mental risks can be cut


Improved economic feasibility of developing
dramatically. marginal or unconventional resources
PRODUCTION

HOW THE TECHNOLOGY WORKS CASE STUDIES


Produced water is placed in a holding pond.
Success in the Field
When ambient temperature drops below 32F, water is sprayed on
a freezing pad.

Due to its higher density, brine with elevated concentrations of total


dissolved solids separates from the ice.

When ambient temperature rises above 32F, ice on the pad melts
and purified water drains.

Brine is disposed of; purified water is discharged or stored for later


beneficial use.

In summer, natural evaporation from the holding pond is


substituted for freezing cycles.

Freezing Pad Major areas of oil


and gas potential

Temperature
Switch

Pump Successful DOE-sponsored tests in New Mexico


Conductivity-Activated Controller In , a joint DOE-, Amoco-, and Gas Research Institute-
sponsored project reported that the freeze-thaw/evaporation
Control
Treated
Water
process could economically cut produced water disposal volumes
Produced Water
Holding Pond Valve by more than percent and produce purified water suitable for
Beneficial
Use
beneficial use or surface discharge. Total dissolved solids concen-
High Salinity
Brine trations at Amocos Cahn/Schneider evaporation facility in the
Disposal
San Juan Basin, for example, were between and , mg/l
Source: Hart Publications, Inc., and Gas Research Institute
for the waters resulting from the process, compared with
, mg/l in untreated waters. In addition to this near
percent reduction, organic and metal constituents were also sig-
nificantly reduced in the processed water. In the winter of
, a more extensive evaluation conducted in more typical
weather conditions resulted in almost identical outcomes. These
field tests demonstrate the technologys commercial viability for
high retention operations in areas with subfreezing winters and
warm, dry summers, such as the Rocky Mountains and Northern
Great Plains and much of Canada.

SOURCES AND ADDITIONAL READING CONTACT

Boysen, J., et al. Field Department of Energy. Cold


Demonstration of the Freeze- Weather Helps Researchers
Thaw/Evaporation Process for Transform Salt Water into
the Treatment of Produced Freshwater. Fossil Energy
Waters in the San Juan Basin in Techline, 4/17/97. U.S. Department of Energy
New Mexico. SPE 37904, 1997. Office of Fossil Energy
Department of Energy and
Boysen, J., et al. Treating Interstate Oil and Gas Compact 1000 Independence Avenue, SW
Produced Waters in the San Commission. Oil and Gas Washington, DC 20585
Juan Basin with the Freeze- Exploration and Production H. William Hochheiser
Thaw/Evaporation Process. Waste Management: A 17-State (202) 586-5614
Gas TIPS, Fall 1997. Study, 1993. william.hochheiser@hq.doe.gov
Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Stranded natural gas resources worldwide

Gas-to-Liquids
Conversion

SUMMARY BLUEPRINT ON TECHNOLOGY cl


Evolving gas-to-liquids Gas-to-liquids conversion taps remote sources of gas to produce
(GTL) technology offers cleaner transportation fuels and promote energy security
the promise of accessing
our vast but remote and Developing and transporting The promise of gas-to-liquids competitive in the petroleum
uneconomic natural gas remote gas resources In , German scientists marketplace, although it had
Franz Fischer and Hans
resources in Alaskas North
Slope and the deepwater
R O U G H LY H A L F T H E
worlds natural gas is
unused because remote loca-
Tropsch introduced the first
GTL conversion process.
been used for political reasons
in noncompetitive economies
such as Nazi-era Germany
Gulf of Mexico, significantly The technology can produce
tions makes it too expensive and apartheid-era South
increasing our Nations to transport to market via a variety of chemicals and Africa. Dramatic recent
energy and economic conventional gas pipelines or fuelsof particular interest advances in GTL technology
security. GTL technology, as cryogenically generated is its ability to yield large vol- focus on improved processes
on the brink of widespread
liquefied natural gas, due to umes of sulfur-free diesel fuel. and catalysts, which are reduc-
distance, climate, environ- The process involves reform- ing costs enough to be more
commercial viability,
mental concerns, political ing natural gas into synthesis competitive with petroleum-
chemically alters natural gas (syngas) by combining
uncertainty, and the large based fuels, depending on gas
gas into stable synthetic capital investments required. the gas with steam, air, or costs and oil prices.
liquid hydrocarbons that On Alaskas North Slope oxygen, then converting the
are far more environmen- alone, for example, approxi- synthesis gas to liquid hydro- GTLs potential to fundamen-
tally friendly and efficient
mately trillion cubic feet of carbons through catalytic tally alter oil and gas markets
producible gas-in-place could reaction, typically with an worldwide has generated
than conventional petrole-
be accessed with a cost- iron- or cobalt-based catalyst. significant private sector
um-based liquid fuels. The liquid products are
effective approach such as research and development
Globally, the technology GTL technology, with the hydrocracked and stabilized efforts, and sparked numer-
could bring some of the converted liquid transported to create transportation fuels ous small-scale and pilot
estimated 2,500 trillion through existing pipelines and chemicals. Until recently, studies. The Department of
cubic feet of known but
and tankers. this process has not been Energy is committed to a
currently untapped gas
to market, accessing an
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
abundant fuel source to
Access to remote uneconomic natural gas Reduced emissions of greenhouse gases
produce liquid transporta-
resources and other air pollutants compared with
tion fuels fully compatible
conventional petroleum-based fuels
with our existing trans- Prolonged access to Alaskan crude oil as a
portation infrastructure. result of sufficient Trans-Alaska Pipeline System Optimized recovery of valuable gas resources
(TAPS) utilization
Reduced flaring of associated gas in remote
Creation of a gas-to-liquids industry resulting in fields
thousands of new domestic jobs and potentially
billions of dollars in new investments
PRODUCTION

goal of , barrels per converted gas from the


day of GTL production by North Slope could be Zero sulfur, zero
(assuming Alaskan transported through the aromatics, high cetane
North Slope gas is no longer existing Trans-Alaska diesel fuel made by
required for reservoir repres- Pipeline System (TAPS), Rentech, Inc., a small
surization), and it plays an from Prudhoe Bay to fuel development com-
active role in technology Valdez, where tankers pany based in Denver,
advances through support of would deliver these liquids Colorado.
a variety of research and to market. This would have
Photo: Rentech, Inc.
assessment projects. It major ramifications for
recently concluded an eight- Alaskas oil and gas industry
year, million cost- and the states overall econ-
sharing agreement with a omy. Due to the approxi-
consortium of research and mate annual percent
private sector parties. The decline in Prudhoe Bay oil
consortium, led by Air production rates, pipeline ENERGY EXPERTS
Products and Chemicals, flow may fall below the The GTL revolution
Inc., is working on a revolu- minimum volume required
tionary ceramic membrane for cost-effective operations GTL will revolutionize the gas industry the way the first LNG plant

technology that promises to within the next two did...[w]e expect to see a 1-2 million barrels per day GTL industry
evolving over the next 15-20 years to the tune of 25-50 billion
cut GTL production costs decades, eventually requir-
dollars of investment.
substantially. ing that the pipeline be
shut in. GTL technology - A RT H U R D . L I T T L E , I N C .
Far-reaching impacts of com- could extend TAPS life by
mercial GTL application more than years and pre- Were looking to open the door to a vast resource of natural gas
that is today beyond our economic reach. This research...could
GTL technology mounted vent shut-in of as many as
pioneer a way to tap that resource and convert it into valuable
on barges or offshore plat- , barrels per day of liquid fuels that America will need in the 21st century.
forms could bring to mar- the last remaining North
- F O R M E R S E C R E TA RY E N E RG Y F E D E R I C O P E A
ket liquid transportation Slope crude, protecting OF

fuels from deepwater Gulf valuable jobs and revenue. The cost-effective conversion of natural gas to clean liquid trans-
of Mexico sites without gas portation fuels...offers a significant potential for greenhouse gas
pipeline access. In Alaska, emissions reduction while allowing greater use of domestic natural
gas supplies.

- N AT I O N A L L A B O R AT O RY D I R E C T O R S , D E PA RT M E N T OF E N E RG Y

SOURCES AND ADDITIONAL READING CONTACT

Corke, M. Economics Favor GTL National Laboratory Directors. Singleton, A. Advances Make
Projects with Condensate Technology Opportunities to Gas-to-Liquids Process More
Production. Oil & Gas Journal, Reduce U.S. Greenhouse Gas Competitive for Remote
9/28/98. Emissions, 10/97. Locations. Oil & Gas Journal,
8/4/97.
Corke, M. GTL Technologies Rhodes, A. Downstream, U.S. Department of Energy
Focus on Lowering Costs. Oil & Catalyst Companies Ally with Von Flatern, R. Gas-to-Liquids Office of Fossil Energy
Gas Journal, 9/21/98. Gas-to-Liquids Process Technology: An Answer to 1000 Independence Avenue, SW
Developer. Oil & Gas Journal, Stranded Gas. Offshore Washington, DC 20585
DOE Funds GTL Study for TAPS.
12/30/96. Magazine, 5/1/97.
Oil & Gas Journal, 10/21/98. Ralph A. Avellanet
Saunders, B. Coming Next: (202) 586-8499
Gas-to-Liquids Processing Hits
Natural Gas Refineries? Oil and ralph.avellanet@hq.doe.gov
Its Stride. Oil & Gas Journal,
Gas Investor, 8/98.
6/15/98. Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Glycol Dehydration

SUMMARY BLUEPRINT ON TECHNOLOGY cm


The U.S. natural gas pro- Effective management of dehydration systems reduces
duction sector operates greenhouse gas emissions, improves air quality, and
some 37,000 glycol dehy-
recovers substantial saleable natural gas
dration systems, which are
designed to remove water Improved practices and rate at which the glycol circu- second, by adjusting glycol
technologies lates through the dehydration circulation rates to optimal
from unprocessed gas pro-
duction streams to produce
pipeline quality gas. But
A FTER REMOVING
water from a stream of
wet natural gas, a typical
system. If the circulation rate
is higher than needed to
achieve pipeline quality gas,
levels. Using a simple mathe-
matical model, engineers can
determine an optimal circula-
during dehydration, these dehydration system circulates more methane and other tion rate, based on the char-
systems typically vent triethylene glycol (TEG) compounds are emitted, with acteristics of the particular gas
methane and other volatile through a reboiler unit to no real improvement in the stream, the pipelines water
organic compounds boil off the water and gaseous quality of the gas stream. content requirements, and
(VOCs), and hazardous air
compounds so that the wet the operators production
TEG can be recycled. At the Consequently, producers are needs. These two processes,
pollutants (HAPs) into the
reboiler, however, methane, reducing air emissions and used in combination, yield
atmosphere. Methane, a and in some cases other recovering valuable methane significant environmental
potent greenhouse gas, is VOCs, and HAPs such as by combining two advanced benefits for the producer in
thought to contribute to benzene, toluene, ethyl ben- practices: first, by installing addition to attractive eco-
global warming, and reduc- zene, and xylene (BTEX), are flash tank separators and con- nomic benefits, since the
ing these emissions is of
vented to the atmosphere. denser units at the reboiler to recovered methane can be
The amount of methane and capture methane, VOCs, and used as on-site fuel or com-
critical environmental
other compounds vented is HAPs before they are vented pressed and reinjected into
importance. Better dehy- directly proportional to the to the atmosphere; and the sales pipeline.
dration systems manage-
ment, including optimiza-
tion of glycol circulation
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
rates and installation of
Reduced energy consumption for circulation Reduced greenhouse gas emissions
flash tank separator-
pumps and reboiler
condensers, enables pro- Improved local air quality due to reduction in
ducers to capture up to 90 Lower operating costs if captured methane is BTEX and VOC emissions
percent of methane and used to fuel on-site equipment
Enhanced regulatory compliance for upcoming
other emissions. These
Increased saleable gas Federal E&P Maximum Achievable Control
processes reduce green- Technology (MACT) requirements
house gas emissions, Potential for increased recovery of natural gas
liquids
improve air quality, and
recover substantial gas for
on-site use or pipeline sale.
PRODUCTION

HOW THE TECHNOLOGY WORKS


Flash Tanks produce a drop in pressure that causes the methane to vaporize In a dehydration process with a flash tank separator, lean TEG is
(flash) from the glycol stream.
sent to the contactor, where it strips water, methane, BTEX, and other
Sales TEG Pump
Compressor Suction compounds from the gas stream before entering the separator. Here
Gas Flare
Driver pressure is stepped down to fuel gas system or compressor suction
Fuel Gas/Instrument Gas
Rich TEG levels, allowing most of the methane and lighter VOCs to vaporize
Glycol FTS
To Atmosphere (flash). The flashed methane can be captured and used as fuel gas or
Contactor compressed and reinjected into the sales line. The TEG flows to the
reboiler, where water and remaining gases are boiled off, and it is
recycled back to the contactor. To prevent discharge of HAPs and
Inlet Glycol Reboiler/ VOCs not recovered through the flash process, dehydration systems
Wet Gas Regenerator
Rich TEG
can also be fitted with air- or water-cooled condensers, which capture
additional compounds as they move through the reboiler stack.
Lean TEG
Electric or Energy
Exchange Pump

CASE STUDIES

Success in the Field reducing these emissions, it soon became clear that the units also
recovered substantial amounts of methane. To determine exactly
how much, Texaco staff conducted empirical measurements and
used a computer-based dehydrator emissions model developed by
the Gas Research Institute. Additional tests analyzed the extent
to which flash methane and condenser BTEX recoveries were
affected by variances in separator temperature and pressure, and
circulation rates.
Results showed methane capture of some thousand cubic feet
per day, nearly million cubic feet per year. In total, methane
emissions from these units were reduced by percent, from
tons to less than tons per year. Under a wide range of tested
Major areas of oil
separator pressures and temperatures, flash methane recoveries
and gas potential ranged from to percent, and condenser BTEX recoveries
ranged from to percent. Texaco also found that reducing
Lower emissions plus lower costs in Louisiana higher than necessary circulation rates resulted in concomitant
In the early , Texaco retrofitted of field-based glycol emission reductions, even without separator-condenser installa-
dehydration systems with flash tank separator-condenser units to tion. As an added benefit, Texaco routed the captured gas into a
reduce emissions of VOCs and BTEX in response to the State of low-pressure gathering system for recompression and subsequent
Louisianas emission control program. In addition to greatly use in its field operations, thus lowering total operating costs.

SOURCES AND ADDITIONAL READING CONTACT

Gearhart, L. New Glycol-Unit United States Environmental


Design Achieves VOC, BTEX Protection Agency. Lessons
Reductions. Oil & Gas Journal, Learned from Natural Gas STAR
7/13/98. Partners: Installation of Flash
Tank Separators. 10/97.
Schievelbein, V. Reducing U.S. Department of Energy
Methane Emissions from Glycol United States Environmental Office of Fossil Energy
Dehydrators. SPE 37929, 1997. Protection Agency. Lessons 1000 Independence Avenue, SW
Learned from Natural Gas STAR Washington, DC 20585
Partners: Reducing the Glycol
Ralph A. Avellanet
Circulation Rates in
(202) 586-8499
Dehydrators. 5/97.
ralph.avellanet@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: United States

Advanced Data
Management

SUMMARY BLUEPRINT ON TECHNOLOGY cn


The exploration and pro- Data management tools improve information access,
duction (E&P) industry is increasing resource recovery efficiencies and informing
among the most data
regulatory and policy decisions
intensive in the world;
E&P data management compliance data to improve IOGCC and DOE are also
various datafrom
geological to technical to
regulatorymust be
E & P D ATA G E N E R A L LY
fall into five major cate-
gories: environmental, geo-
decision-making processes;
versus environmentalists, who
need habitat surveys and emis-
bringing key E&P data
online to facilitate decision
making by industry and
managed by both industry logic, exploration and pro- sion reports to inform policy States. These efforts include
and government. duction, regulatory, and tech- debates. Both government DOEs Environmental
Advanced data manage- nology. Advanced data man- and industry seek to improve Compliance Assistance System,
ment systems are key to agement techniques enable: their data management sys- which provides information
increasing the efficiency
(1) better regulatory, enforce- tems to support these goals. regarding Federal E&P envi-
ment and compliance deci- ronmental regulations, and
of oil and gas recovery
sions; (2) more informed gov- Comprehensive State IOGCCs framework for help-
and making effective ernment program and policy data facilitate decisions ing States develop permitting
regulatory and policy deci- decisions; and (3) more effi- States and DOE are collabo- and regulatory compliance
sions. With participation cient oil and gas recovery. rating to enhance State-level assistance programs.
by industry, State regula- Data management has dif- oil and gas data collection
tors, and DOE, numerous
ferent meanings for different and management efforts. For Enabling cost-effective
technologists. For example, example, with DOE support, regulation
efforts are under way,
geophysicists may want to the Interstate Oil and Gas Developed by the Ground
such as standardized data interpret 3-D seismic data to Compact Commission Water Protection Council
collection of State oil and locate oil and gas resources, (IOGCC) is cataloging State with funding from DOE, the
gas statistics, risk-based and petroleum engineers may data collection efforts and Risk-Based Data Management
decision making, detailed want to interpret production management capabilities and System (RBDMS) was origi-
online digital atlases of
data to enhance recovery; devising uniform standards nally designed to manage data
whereas State regulators might for State permitting, produc- for underground injection
oil and gas plays, and
use online permitting and tion, and well statistics. control programs, enabling
validation methodology
for Area of Review (AOR)
variances. Initiatives such ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
as these reflect advanced
Better data access facilitates more effective busi- Better regulatory and policy decision-making
computer technology
ness and investment decisions processes, leading to enhanced environmental
capabilities, handling protection
massive amounts of data Risk-based regulatory decisions lower environ-
mental costs and increase operational efficiency Risk-based regulatory structures focus industry
more quickly and cheaply
and government activities on areas of greatest
than ever. More efficient recovery of oil and gas resources, potential risk
through improved prospect identification and
targeting
PRODUCTION

more effective regulatory and agement tools and geological data, sophisticat- requiredthe producer will
operational decision making. Geographic Information ed digital maps and imagery, be notified electronically
The system has been so well Systems (GIS) to help regu- as well as field-specific infor- whether the application has
received that it is being lators conduct AOR and mation on recovery tech- been approved. Although
modified by individual variance analyses statewide. nologies and engineering the expected savings per
States to include produc- methods for identifying new permit application may be
tion, geological, and waste Enhancing oil or unswept zones. relatively small, overall cost
management data, as well as and gas recovery savings are expected to be
enforcement and permitting Partnering with States and Electronic permitting significant; annual savings
data. Initial RBDMS suc- the Gas Research Institute, in Texas from drilling permits alone
cess has prompted more DOE is supporting both Through a new DOE- are estimated at between
than 20 States to form a print and digital atlases of sponsored pilot program, $3 million and $6 million.
users group to help each producing regions in the the Texas Railroad
other implement the system. United States. For example, Commission is developing Advanced computing
a DOE-supported consor- a paperless, digital on-line leads the way
Improving AOR verification tium is using GIS technol- permitting system, which The Oil and Gas
Under the Safe Drinking ogy to develop a digital will save the States opera- Infrastructure Project
Water Act, operators are atlas of oil and gas plays tors and regulators millions part of DOEs Advanced
required to conduct quar- and fields specific to of dollars and countless Computational Technology
ter-mile AOR analyses of Kansas, Nebraska, the labor hours. This fully digi- Initiativehas explored
disposal and injection wells, Dakotas, and parts of tal approach will soon implementing inexpensive
but AOR variances may be Montana and Colorado. enable operators to submit mechanisms for online
granted in specific cases. In these mature regions, an electronic permit appli- access to well-level oil and
With DOE and American advanced technology and cation via an Internet- gas data from Texas, Cali-
Petroleum Institute support, data management are seen linked computer, complete fornia, and other States.
the University of Missouri- as the best approaches to with supporting graphical Such mechanisms enhance
Rolla has developed a scien- extend production and pre- or text attachments. The producers access to produc-
tific methodology for vali- vent premature well aban- operators identity will then tion and geological data,
dating AOR variance donment. To help operators be authenticated, and per- ultimately enabling more
requests that is expected to recover more original oil-in- mit fees paid through a efficient resource recovery.
provide industry cost savings place, the atlas, which cur- secure on-line transaction.
exceeding $300 million. rently covers only Kansas, Within hoursperhaps the
DOE has also supported will provide extensive pro- same day, rather than the
development of data man- duction, petrophysical, and days or weeks now

SOURCES AND ADDITIONAL READING CONTACT

CH2M Hill. RBDMS Web Site. Emmons, L. Practical Kansas Geological Survey.
www.ch2m.com/ch2mhill/ Approaches to Environmental Digital Petroleum Atlas.
projects/rbdms Protection in the Exploration www.kgs.ukans.edu
and Production Industry. SPE
Department of Energy. Office of Simmons, J., and S. Jones. Multi
28735, 1994.
Fossil Energy. Oil and Gas R&D State Area of Review Variance
U.S. Department of Energy
Programs, 3/97. E&P Forum/UNEP. Program. SPE 37920, 1997.
Office of Fossil Energy
Environmental Management in
Department of Energy. Stilwell, C. Area Waste 1000 Independence Avenue, SW
Oil and Gas Exploration and
Richardson Launches Effort to Management Plan for Drilling Washington, DC 20585
Production: An Overview of
Bring All-Digital Permit Process and Production Operations. SPE
Issues and Management Nancy L. Johnson
to Oil Industry (Draft Release), 65th Annual Technical
Approaches. (202) 586-6458
2/19/99. Conference and Exhibition,
nancy.johnson@hq.doe.gov
Interstate Oil and Gas Compact 1990.
Commission. Guidelines for Trudy A. Transtrum
States: Exploration and (202) 586-7253
Production Data Management, trudy.transtrum@hq.doe.gov
11/96.
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Improved Recovery
Processes

SUMMARY BLUEPRINT ON TECHNOLOGY co


The goal of evolving oil Thirty years of continuous improvement in enhanced
recovery technologies is recovery technology has led to significant reserve
increased reserves with less
additions and less drilling
drilling. Despite significant
technology advances in pri- Getting more oil from the development and contin- Today, unconventional
existing fields ued innovation of EOR tech- approaches such as fieldwide
mary and secondary pro-
duction, much of a reser-
voirs original oil-in-place
P RO D U C T I O N AT M O S T
oil reservoirs includes
three distinct phases: primary,
niques has increased ultimate
recovery to to percent
of a reservoirs original oil-in-
development using strategically
placed horizontal wells, or
microbial injection to improve
remains untapped after secondary, and enhanced place. In the United States, recovery may lead to new
these phases of the produc- recovery. During primary three major categories of EOR classes of EOR technology.
tion cycle. Coupled with recovery, which uses natural technologythermal, gas, and Innovations in thermal recov-
advanced field management
pressure or artificial lift tech- chemicaldominate EOR ery include radio frequency
niques to drive oil into the production. heating, and enhanced gravity
practices, new enhanced oil
wellbore, only about per- drainage with steam in verti-
recovery (EOR) technolo-
cent of the oil-in-place is gen- Even though improved EOR cally parallel horizontal wells.
giessuch as thermal, gas, erally produced. Shortly after technology can significantly
and chemical techniques World War II, producers extend reservoir life and has Thermal recovery
can significantly increase began to conduct secondary been successfully used since Thermal recovery techniques
production in some matur-
recovery techniques to extend the , historically high account for some percent
the productive life of oil fields, costs have limited widespread of daily U.S. EOR produc-
ing fields. The United States
increasing ultimate recovery to application. In the last decade, tion. Used in individual wells
leads the world in sophisti-
more than percent. Gas however, dramatic improve- or fieldwide, steam injection
cated EOR technology, injection, for example, can ments in analytic and assess- and flooding provide effective
which currently accounts maintain reservoir pressure ment tools have led to a recovery of heavy, viscous
for about 12 percent of and keep fluids moving; greater understanding of reser- crudes, which must be
domestic daily crude oil pro-
waterfloods are used to dis- voir geology and the physical thinned to enable oil to flow
place oil and drive it to the and chemical processes gov- freely to the wellbore. The
duction, a 140 percent
wellbore. In recent decades, erning flows in porous media. most common domestic EOR
increase from daily EOR
rates only 15 years ago. In
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
addition to preventing pre-
Worldwide production of approximately 2.3 mil- Fewer new wells drilled due to increased
mature abandonment of
lion barrels per day (760,000 barrels per day in reserves from existing fields
significant domestic oil
the United States) that would otherwise remain
resources, these technologies untapped Less environmental impact due to reduced
could potentially recover half abandonment of marginal wells and offshore
of the Nations 350 billion Potential recovery of up to half of the 350 billion platforms
barrels of discovered, currently unrecoverable,
barrels of discovered, but
domestic oil
unrecoverable original
oil-in-place. Increased production from marginal resources
PRODUCTION

practice, this process has of daily EOR production, one percent of daily U.S. cal recovery technique,
contributed directly to gas injection is the second EOR production. In an surfactant flooding (also
improved burning efficien- most prevalent technology enhanced waterflooding known as micellar-polymer
cies of both gas and oil, and currently in domestic use. method known as polymer flooding), a small slug of
spawned the cogeneration Two basic forms exist: flooding, high molecular surfactant solution is injected
industry, which uses clean- immiscible, in which gas weight, water-soluble poly- into the reservoir, followed by
burning natural gas to create does not mix with oil; and mers are added to the injec- polymer-thickened water and
both steam and electricity at miscible, in which injection tion water to increase its then brine. Despite its very
attractive prices for oil field pressures cause gas to dis- viscosity relative to that of high displacement efficiency,
operators and utilities. In solve in oil. Immiscible injec- the oil it is displacing, raising this technology is hampered
California alone, for example, tion, which can use natural yields since oil is no longer by the high cost of chemicals
existing cogeneration plants gas, flue gas, or nitrogen, cre- bypassed. In another chemi- and their environmental
generate enough electricity to ates an expanding force in impact.
supply . million homes. the reservoir, pushing addi- CASE STUDIES
A second type of thermal tional oil to the wellbore.
recovery, in-situ combustion, Miscible gas injection dissolves Success in the Field
injects air or oxygen into the propane, methane or other
formation and uses a con- gases in the oil to lower its Steamflooding increases reserves
trolled underground fire to viscosity and increase its flow fivefold at Kern River field
burn a portion of the in- rate. In place of the costly Discovered in by hand digging a -foot well, the giant Kern
place crude. Heat and gases hydrocarbon gases used in River field near Bakersfield, California, had nearly wells by
move oil toward production some EOR projects, miscible . At its peak, primary production was , barrels/day, but
wells. This process is highly gas drives also frequently use had declined to , by . Installing bottomhole thermal
complex, involving multi- carbon dioxide (CO2) and heaters in the s succeeded in making oil less viscous so that it
phase flow of flue gases, nitrogen. CO2 flooding has flowed more easily. Surface steam injection followed in the s,
volatile hydrocarbons, steam, proven to be one of the most and ultimately fieldwide steamflooding brought production to a
hot water, and oil, and its efficient EOR methods, as it peak , barrels/day in . Production from the field was
performance in general has takes advantage of a plenti- still over , barrels/day in . Overall, thermal EOR has
been insufficient to make it ful, naturally occurring gas increased recovery from percent of oil-in-place to over per-
economically attractive to and can be implemented at cent, with ultimate recovery of percent from this . billion-
producers. lower pressures. barrel field. Production is nearly five times greater than possible
with primary recovery technology alone. Field life has been dou-
Gas-immiscible and Chemical recovery bled, and on its th birthday in , Kern River field will still
-miscible recovery Chemical recovery tech- have , producing wells.
Accounting for percent niques account for less than

SOURCES AND ADDITIONAL READING CONTACT

California Department of Moritis, G. EOR Oil Production


Conservation, Division of Oil Up Slightly. Oil & Gas Journal,
and Gas. 1997 Annual Report. 4/20/98.

Kane, A. Performance of a Stalkap, F. Miscible


Large-Scale CO2-WAG Project: Displacement Monograph, U.S. Department of Energy
SACROC UnitKelly-Snyder Vol. 8. SPE, 1984. Office of Fossil Energy
Field. Journal of Petroleum 1000 Independence Avenue, SW
Technology, 2/79. Washington, DC 20585

George Stosur
(202) 586-8379
george.stosur@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Leak Detection and


Measurement Systems

SUMMARY BLUEPRINT ON TECHNOLOGY cp


Leak detection and mea- New devices to detect and measure gas leaks aim
surement systems play an to eliminate greenhouse gas emissions
essential part in control-
ling emissions of Overcoming the limitations of devices are easy to use, but Sampler, developed by the
methanea potent green- conventional systems accuracy rates are low. Gas Research Institute (GRI)
house gas and valuable
energy productfrom the
M A NAGING LEAKS IN
the U.S. oil and gas
infrastructure is a formidable
Distortions up to three orders
of magnitude can occur due
to wind conditions, leak
and Indaco Air Quality
Services, Inc., samples the air
surrounding leaking compo-
Nations massive oil and
task. This complex infrastruc- velocity, the shape of the nents using a pneumatic air
gas infrastructure. ture involves nearly , component, and the surface mover, thus eliminating the
Significant amounts of producing oil and gas wells distribution of the leak. need for bagging. Although
methane are emitted to and related equipment, more expensive than conven-
the atmosphere during
, miles of natural gas Another conventional prac- tional tools, this technology
transmission pipeline, and tice, bagging, measures offers the accuracy of bagging
production, transmission,
about . million miles of dis- leaks by enclosing a compo- and the ease and speed of
processing, storage, and
tribution pipeline. New tech- nent in a nonpermeable bag, leak concentration measure-
distribution. New technol- nologies overcome drawbacks adding air (or nitrogen), and ments. It can also measure
ogy facilitates accurate, in standard industry then measuring an exhaust much larger leaks than stan-
efficient leak detection and approaches, such as leak stream with an OVA. While dard instruments, which
measurement by ensuring
concentration measurement highly accurate, bagging is typically malfunction above
techniques. These use hand- costly, labor-intensive, time- leak detection ranges of
equipment and pipeline
held instruments, such as consuming, and impractical , parts per million.
integrity and timely main-
organic vapor analyzers when large numbers of com-
tenance and repair. These (OVAs) equipped with flame ponents must be tested and Backscatter absorption
controls capture saleable ionization detectors, to sam- measured. gas imaging
natural gas, create safer ple methane concentrations Another new technology,
work places, and protect
around leaking components. High-flow samplers backscatter absorption gas
The leak flow rate can be Advanced technologies equip imaging (BAGI), is a state-of-
our environment.
estimated by the predicted the industry to detect leaks the-art, remote video-imaging
relationship between concen- with better accuracy and effi- tool developed by Sandia
tration and leak rate. Such ciency. The High-Flow National Laboratories, with

ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

More accurate information on leak characteristics Reduced emissions of methane, a potent


and emissions, leading to successful, cost- greenhouse gas
effective leak reduction strategies
Enhanced worker safety due to more effective
Increased recovery and usage of valuable and efficient leak detection
natural gas
PRODUCTION

CASE STUDIES

Field trials of the new


Success in the Field
High-Flow Sampler
promise more effective
leak detection and
measurement.

Alaska
video picture. The equip-
ment can be tuned to the
absorption resonances of a
wide variety of gases.
Remote video imaging, with
the superior efficiency of
Photo: Hart Publications, Inc., and
Gas Research Institute covering an entire area at
one time, could greatly sim-
support from GRI and plify leak detection. The lat-
DOE. Whereas other sur- est field trials indicate an
veys are performed with impressive detection range,
manually scanned point sen- with flow rates as low as .
sors, BAGI technology uses standard cubic feet per hour High-tech sampling and imaging matched by
infrared laser-illuminating at distances from up to effective low-tech approach
imaging. If a gas plume is meters, and leaks as low as In June , a Unocal Spill Prevention Task Group used
present and resonating with- . standard cubic feet per Labradors and Golden Retrievers to detect underground pipeline
in the illumination wave- hour at closer distances. leaks in the -year-old Swanson River Field in Alaskas Kenai
length, the plume attenuates Estimates are that BAGI National Wildlife Refuge. The dogs, originally used in law
a portion of the laser will increase area leak search enforcement, were retrained to recognize a nontoxic odorant
backscatter and appears as a rates by a factor of ver- (Tekscent) injected in the pipelines. In widely ranging tempera-
dark cloud in the real-time sus existing technology. tures, the dogs successfully detected two faulty valve box seals
and leaks in pipelines down to feet underground or under
feet of snow. The team inspected about miles of pipelines in
two weeks. Unocals use of this and other innovative environ-
mental technologies earned them an U.S. Department of the
Interior National Health of the Land environmental excellence
award in May .

SOURCES AND ADDITIONAL READING CONTACT

Alaskas E&P Outlook-3. Oil & Resch, R., and S. Newton. U.S. Environmental Protection
Gas Journal, 7/1/96. Natural Gas STAR Program Agency. Inventory of U.S.
Options for Reducing Methane Greenhouse Gas Emissions and
Kulp, T., et al. The Development
Emissions. GasTIPS. Gas Sinks, 1990-1996. 3/98.
of Active Imaging Techniques
Research Institute, Winter
for the Remote Detection of U.S. Environmental Protection U.S. Department of Energy
1996/97.
Natural Gas Leaks. Sandia Agency, Natural Gas STAR Office of Fossil Energy
Combustion Research Technical Sandia National Laboratories. Program. Measuring Methane 1000 Independence Avenue, SW
Review. Sandia National Long-Range Imaging of Gas Emissions. 1997. Washington, DC 20585
Laboratories, 1997. Plumes Demonstrated in Field
Christopher J. Freitas
Trials. Combustion Research
(202) 586-1657
Facility News, January/February
christopher.freitas@hq.doe.gov
1996.
Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Low-Bleed
Pneumatic Devices

SUMMARY BLUEPRINT ON TECHNOLOGY cq


Throughout all sectors of Energy-efficient low-bleed pneumatic devices can
the natural gas industry, dramatically reduce methane emissions and recover
pneumatic valves, regula-
lost gas resources
tors, and sensors use pres-
surized gases to control Protecting the ozone layer operators estimate that most devices at once, operators are
or monitor critical equip- and saving valuable gas devices typically bleed about finding successful alternatives,
ment. As part of normal
operations, pneumatic
T H E N AT U R A L G A S
production sector uses
pneumatic devices to control
three times that rate.

Aggressive replacement,
such as combining replace-
ments and retrofits, or
installing a low-bleed device
devices release natural
and monitor gas and liquid retrofitting, inspection, and when an existing device fails
gas, primarily methane,
flows and levels in dehydrators maintenance or is no longer efficient.
to the atmosphere. Within and separators, temperature New, technically advanced
the industry, pneumatic in dehydrator regenerators, low-bleed devices and retrofit Others have implemented
devices are the single and pressure in flash tanks. kits offer comparable perfor- aggressive inspection and
largest source of methane
Approximately , mance characteristics to high- maintenance programs. By
pneumatic devices are used in bleed models, yet reduce cleaning and repairing leaking
emissions, venting nearly
the production sector alone, methane emissions consider- gaskets, fittings, and seals,
50 billion cubic feet annu-
venting an estimated bil- ablyon average, they vent operators are able to reduce
ally. Older designs leak, or lion cubic feet of methane percent less methane. methane emissions substan-
bleed, an average of 140 annually, percent of total Although low-bleed devices tially. Other effective practices
thousand cubic feet per methane emissions. Specific typically cost more than their include tuning the device to
year per device, a volume
bleed rates are a function of high-bleed equivalents, cost- operate in the low or high
the design, condition, and benefit analyses show that end of its proportional band,
equivalent to an average
specific operating conditions replacement or retrofit project minimizing regulated gas
households annual use,
of the device. By definition, a costs are typically recouped supply, and eliminating
whereas newer, low-bleed high-bleed device leaks more within months. While it may unnecessary valve position
designs emit an annual than six standard cubic feet be impractical to replace all indicators.
average of only 8 to 12 per hour, although industry an operations high-bleed
thousand cubic feet.
Replacing or retrofitting
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
devices, or improving
maintenance, can reduce Increased operational efficiency, as retrofit or Reduced greenhouse gas emissions
gas emissions substantially, replacement can provide better system-wide
performance, reliability, and monitoring of Conservation of valuable gas resources
reducing greenhouse gas
key parameters
emissions and potentially
saving the industry millions Increased saleable product volume, as leaks
of dollars in lost methane. are minimized
PRODUCTION

CASE STUDIES

Success in the Field Marathon survey drives inspection, repair,


and replacement program
As an EPA Natural Gas STAR Program partner, Marathon Oil
United States Company recently surveyed more than pneumatic devices at
U.S. production facilities. Results indicated that Marathon
devices were bleeding . million cubic feet of methane per year,
on par with the annual gas consumption of residential con-
sumers. Consequently, Marathon has now implemented a com-
Gulf of prehensive program to inspect, repair, and replace its high-bleed
Mexico
pneumatic devices, saving gas and reducing emissions. In fact,
Marathon determined that purchasing expensive leak detection
equipment was not even needed to conduct such surveys; only lis-
tening was required, because control devices with higher emis-
sions [could] be identified qualitatively by sound.
Gas Saved by Retrofitting Controllers at Chevron
Before After
Retrofit Retrofit Savings
Chevron retrofits reduce emissions by 90 percent Location Unit Service (scf/day) (scf/day) (scf/day)
Chevron installed a low-bleed retrofit valve kit on liquid level and V245 F Fisher 2900 Oil Dump 438 43 395
pressure controllers on two platforms in the Vermilion fields blocks V245 F Fisher 2900 Suction Scubber 211 0 211
V245 F Fisher 2900 Gas Filter 397 1 396
and , roughly 60 nautical miles south of the Louisiana coast V246 D Fisher 2900 Oil Dump 328 81 245
in the Gulf of Mexico. During this pilot test in January , V246 D Fisher 2900 Water Dump 567 0 567
devices were tested on one platform and devices on another. The Average 388 25 363

retrofits yielded average reductions in bleed rates of more than 90 V246 D Fisher 2900 Water Skimmer 508 177 331
V245 F Fisher 4150 Fuel Gas Reg. 145 0 145
percent. A cost-benefit analysis showed that the retrofitting costs V245 F Fisher 4160 Sales Gas Reg. 108 0 108
would be recovered in less than two years, with specific payback V245 F Fisher 4160 Makeup Gas Reg. 534 12 522
periods based on the characteristics of the device retrofitted and an Average 262 4 258

assumed natural gas wellhead price of . per thousand cubic feet. V246 D Fisher 2900 Oil Dump 950 4 946
SPE 37927, 1997

METRICS

Since 1991, EPA Natural Gas STAR Producer members, who account Advanced technology, combined with improved maintenance
for approximately 35 percent of the Nations natural gas production, practices, can reduce methane losses from pneumatic devices by
have reduced methane emissions from pneumatic devices by nearly approximately 90 percent.
11.5 billion cubic feet, worth an estimated $23 million.

SOURCES AND ADDITIONAL READING CONTACT

Scalfano, D. Case History: Weust, J. Case History of an


Reducing Methane Emissions Onshore High Bleed Pneumatic
from High Bleed Pneumatic Pilot Evaluation Project. SPE
Controllers Offshore. SPE 37927, 37928, 1997.
1997.
U.S. Department of Energy
United States Environmental Office of Fossil Energy
Protection Agency. Lessons 1000 Independence Avenue, SW
Learned: Options for Reducing Washington, DC 20585
Methane Emissions from
George Stosur
Pneumatic Devices in the
(202) 586-8379
Natural Gas Industry. 5/98.
george.stosur@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
Locations: Deepwater areas of Australia, Brazil, Gulf of Mexico,
TECHNOLOGY North Sea, Southeast Asia, West Africa, and elsewhere

Offshore Platforms

SUMMARY BLUEPRINT ON TECHNOLOGY cr


Finding economically Advanced offshore platform technology reduces project
viable methods to tap duration, costs, and impacts on marine environments
vast deepwater resources
is driving innovations in Enhanced recovery with cut in half. Todays TLP can can be constructed and
offshore technology. fewer risks withstand hurricane-force deployed swiftly in marginal
Potential payoffs are
immense. An estimated 90
P L AT F O R M D E S I G N
is key to cost-effective
deepwater field development.
winds and waves, and its
deepwater limits are being
extended, perhaps to ,
deepwater fields.

Spar drilling and production


percent of undiscovered
Variables include field feet. High-performance com- platformslarge, cylindrical
global reserves are under remoteness, size, and charac- posites, stepped tendons, platforms supported by buoy-
3,000 feet or more of teristics, water depth and cables, and other options can ancy chambers and fastened
water. Between 1996 and condition, and weather pat- increase tendon stiffness and with catenary mooring sys-
1998, nearly 75 percent of
terns. Today, eight floating reduce vertical motion in temshave been used for
TLPs, moored to the ocean harsh ocean settings. The research, communication,
the 66 oil discoveries
floor with high-strength ten- conceptual raft TLP, a sub- storage, and offloading for
greater than 100 million
dons that provide vertical and merged hull tensioned to the more than years. The first
barrels were offshore. lateral stability, operate in sea floor, would also mini- spar production platform,
Effective new technology large, multi-well fields world- mize motion at reduced cost. installed in , feet at the
includes advanced tension wide. TLPs offer the advan- Gulfs Neptune Field in ,
leg platforms (TLPs) and
tages of fixed platforms TLP innovations have was designed for maximum
space for crew quarters, spawned mini-TLPs with production of , barrels
mini-TLPs, which are
drilling rigs, and production small footprints and perma- of oil per day and features a
lower-cost, small-footprint
facilitieswith lower invest- nent tension leg moorings -by--foot hull enclosing
platforms suited to mar- ment costs. Maturation of that allow installation close to buoyant risers and surface
ginal fields. Other offshore TLP technology has enabled other platforms. The required wellheads. Advances have led
platforms include spars, more aggressive production investment in conventional to units designed to operate
now designed to operate
schedules and less exposure to TLPs can make their use for in more than , feet of
economic risks. Platform smaller discoveries unprof- water. Inherent design versa-
in depths of up to 8,000
construction time has been itable. Less costly mini-TLPs tility and optional hulls
feet, semisubmersible
floating production systems
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
(FPS), and new-generation
floating production, stor- Recovery of significant deepwater oil and gas Optimized recovery of valuable deepwater oil
age, and offloading systems reserves that may otherwise remain undevel- and gas resources
oped; enhanced recovery of marginal resources
(FPSOs). Ongoing technol-
Shorter construction and production schedules
ogy refinement continues Combined with advanced subsea completion ultimately reducing operational footprints, and
to optimize recovery, technology, shorter construction and develop- protecting marine habitats and ocean
reduce costs, and mini- ment schedules, leading to reduced costs resources
mize environmental risks
FPSO and FPS deployment facilitates low-cost
and impacts.
field abandonment
PRODUCTION

CASE STUDIES

(classic and truss) allow FPSOs are selected in remote Success in the Field
flexibility of use, from storage locations lacking pipelines
to any combination of and fixed infrastructure, mar-
drilling, production, and ginal fields, and depths too United States
workover, decreasing financial great for fixed platforms,
risk. Spars, easily relocated whereas FPSs are used where
and reused, are also attractive infrastructure connections are
for marginal fields. available. Combined with
subsea completion technolo-
Marginal fields, mild climates, gies, FPSO and FPS plat-
and shallow depths were the forms are considered critical Gulf of
criteria for using the first to industrys move toward Mexico
FPSO and FPS years ago, ,-foot water depths,
but today an estimated and many believe that this
units operate worldwide in combination offers the most
varied climates and depths. viable option over , feet.
Enhanced FPSOs have a Compared with spars and
compression system for gas TLPs, deepwater subsea
lift, injection, and export, completions offer shorter
desalters, water injection and development schedules and
natural gas liquids recovery more flexibility in location Ram-Powell TLP
systems, as well as a conven- and well number. Production began in September at the billion Ram-Powell
tional production system. Unit, a ,-ton, ,-foot high TLP in the Gulf of Mexico
about miles south of Mobile, Alabama. A development joint
venture between Shell, Exxon, and Amoco, Ram-Powell employs
a permanent crew of and has peak gross production capacity
of , barrels of oil and million cubic feet of gas per day.
Twelve -inch diameter tendons, each about , feet long,
support the unit in more than , feet of water, a new depth
record for a permanent production platform. Ram-Powell can
drill down to , feet below the sea floor, and has complete
oil and gas processing separation, dehydration, and treatment
facilities. Estimated recovery from this project is approximately
million barrels of oil equivalent.

SOURCES AND ADDITIONAL READING CONTACT

Beims, T. Industry Sees More Crager, B. and C. McCabe. McCaul, J., and E. Smith.
Subsea Technology on Gulfs MOPS Cut Offshore International Report: Technology
Deep Horizon. The American Oil Development Risk. The Changing Needs for Deepwater
& Gas Reporter, 6/97. American Oil & Gas Reporter, Vessels. Offshore Magazine,
4/97. 5/1/98.
Bourgeois, T., et al. Race on for
U.S. Department of Energy
Deepwater Acreage, 3,500-meter Design of FPSO Systems for Miller, T. Deepwater E&P:
Office of Fossil Energy
Depth Capability. Offshore Re-use, Decommissioning. Drilling, Production Spar Dictates
1000 Independence Avenue, SW
Magazine, 10/98. Offshore Magazine, 4/1/98. Difference in Mooring Setup.
Washington, DC 20585
Offshore Magazine, 6/1/98.
Chianis, J., and P. Poll. Kibbee, S. TLP Technology:
George Stosur
Production Systems: Studies SeaStar Minimal Platform for Skaug, L. New Designs Advance
(202) 586-8379
Clear Cost, Depth Limit Small Deepwater Reserves. Spar Technology into Deeper
george.stosur@hq.doe.gov
Misconceptions. Offshore Offshore Magazine, 6/1/96. Water. Oil & Gas Journal,
Magazine, 7/97. 11/2/98. Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Downhole Oil/Water
Separation

SUMMARY BLUEPRINT ON TECHNOLOGY cs


New downhole separation Emerging technologies for downhole fluids separation can
technologies promise to reduce the volume of produced water brought to the surface,
cut produced water vol-
while increasing oil recovery
umes by as much as 97
percent in applicable Conventional surface Three promising mechanisms the water/oil interface to rise
wells. Usually, both water
separation for downhole separation in a phenomenon called
Downhole oil/water separa-
and oil are pumped to the
surface for separation, but
I N T O D AY S T Y P I C A L
oil well, produced water
and oil are pumped to the
tion involves the use of
mechanical or natural separa-
coning. When the tip of
the water cone reaches the
perforations in the well cas-
novel mechanisms surface for separation, after tion mechanisms in the well- ing, the well begins to pro-
installed below the surface which the oil is pumped off bore to separate the forma- duce large amounts of water.
can now separate the for- and the water treated, then tions oil and water. Although This technique for downhole
mations oil and water in reinjected into the ground. not applicable to heavier, separation maintains a flat
This approach brings conta- low-API gravity crudes, three oil/water zone by using dual
the wellbore. Oil is then
minants up through the well basic downhole separation perforations in the well casing
produced, but water is
piping, and incurs significant techniques are currently to produce water from below
directly pumped into a water lifting and handling under development. the zone (for downhole injec-
subsurface injection zone. costs. Emerging downhole tion into another formation)
This minimizes environ- separation technologies can Gravity separation in the simultaneously with oil from
mental risks and reduces minimize the environmental reservoir enhances and main- above the zone. This helps to
risks associated with pro- tains the gravitational maintain the natural oil/water
fluid lifting and disposal
duced water handling, treat- oil/water separation that gravity segregation and avoids
costs. Downhole separa-
ment, and disposal, and occurs naturally in reservoirs. coning.
tion can also increase oil greatly reduce the costs of The normally level oil/water
production significantly, lifting and disposing of the contact is skewed by the pro-
and this, combined with produced water. duction process, which causes
reduced operating costs,
could potentially extend
the life of marginal wells
or reactivate shut-in wells. ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
Field testing and demon-
Significant reductions in water lifting and Volume of produced water brought to surface
stration projects are cur- disposal costs reduced significantly, greatly minimizing risk
rently under way in from contaminants on the surface and to
Enhanced oil production drinking water aquifers
numerous projects
throughout the United Increased access to marginal or otherwise Less drilling of new wells, due to greater
States and the world. uneconomic wells recovery from existing wells

Reduced production footprints, as surface


facilities may be smaller
PRODUCTION

CASE STUDIES

Gravity separation in the well Although developed initial- Success in the Field
casing allows the produced ly for onshore application,
fluids to separate naturally rapid advances in downhole Significant pilot results
in the well casing, then uses separation technologies are A collaborative Mobil, BP Amoco, Texaco, and Chevron consor-
a dual-action pump system heightening interest in off- tium (MoBPTeCh) was chartered to develop innovative solutions to
(DAPS) to pump the oil up shore use. For example, a common environmental problems in the oil and gas industry.
and inject the water down- new generation of intelli- MoBPTeCh has recently conducted extensive research on produced
hole. The DAPS has two gent, computer-driven water downhole separation technologies, with test wells in opera-
pump intakes that are posi- subsea downhole separation tion using gravity separation in the well casing. At this time, the
tioned above and below the systems, currently under project uses rod pumps only, but future tests with ESPs are expected
oil/water interface. development, will remotely to greatly increase the handling capacity of liquid volumes. Initial
monitor and control fluid results indicate great potential for downhole separation technologies
Hydrocyclone separation is a flow and downhole injec- to reduce produced water volumes and increase production.
promising technique that tion. These systems promise
uses centrifugal force to sep- to be particularly useful in
arate oil and water. Most METRICS
multilateral environments,
such systems rely on electri- by controlling downhole Field trials in Canada and the United States
cal submersible pumps water injection into a dedi- show increased oil production and decreased
(ESPs) to push or pull water cated lateral strategically water production
through the hydrocyclone. placed to enhance water-
While this approach can flooding and pressure
handle larger volumes of maintenance. 150
fluids, the higher cost of the (145)

hydrocyclone and pump 100


(106) (100)
equipment has limited its 50 (50)
use to date. Talisman Energy
Tidewater Parkman
Texaco RMOTC Anderson Talisman Energy
77 Ax20 08-17 Creelman 3c7-12/dB
0 4-27
(45)
-50 (80)
(93) (95)
-100 Wells using Wells using
Gravity Separator Hydrocyclone
-150

Oil Production Water Production

Source: Argonne National Laboratory, 1999

SOURCES AND ADDITIONAL READING CONTACT

Desanding System for Miller, J. Tool Reduces Produced Solanki, S., et al. Downhole
Downhole Oil/Water Separation: Water Costs. The American Oil & Oil/Water Separation Systems
Field Trial. Journal of Petroleum Gas Reporter, 1/97. (AQWANOT) Joint Industry
Technology, 9/98. Project. SPE ESP Forum, 1996.
Miller, J. Tool Solves Produced
Downhole Water Separation Water Problems. The American Veil, J., et al. Feasibility
U.S. Department of Energy
Scaling up for Higher Volumes. Oil & Gas Reporter, 3/97. Evaluation of Downhole Oil/Water
Office of Fossil Energy
Offshore Magazine, 6/98. Separation (DOWS) Technology.
Monitoring and Control of 1000 Independence Avenue, SW
Prepared by Argonne National
Furlow, W., and V. Schmidt. Downhole Oil/Water Separation. Washington, DC 20585
Laboratory, CH2M Hill, and
Production Systems Moving Journal of Petroleum
Nebraska Oil and Gas Nancy L. Johnson
Subsea and Downhole. Offshore Technology, 10/98.
Conservation Commission, for (202) 586-6458
Magazine, 6/98.
Peats, A., et al. Application of the U.S. Department of Energy, nancy.johnson@hq.doe.gov
Mathews, C., et al. Application ESP Oil Water Separation Office of Fossil Energy, 1/99.
of Downhole Oil/Water System in the Swan Hills Unit Trudy A. Transtrum
Separation Systems in the One Field-A Case Study. SPE (202) 586-7253
Alliance Field. SPE 35817, 1996. ESP Workshop, 1997. trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY U.S. Offshore (Gulf of Mexico, California, and Alaska)

Safety and Environmental


Management Programs

SUMMARY BLUEPRINT ON TECHNOLOGY ct


Offshore operations repre- Implementation helps offshore operators avoid costly
sent over one quarter of injuries, platform damage, and environmental incidents
the Nations oil and natur-
al gas production. Since Standards and training Plan for Outer Continental We have seen strong evidence
the early 1990s, Federal reduce human error Shelf Operations and Facilities that adoption of SEMP can
(RP ), first issued by API
regulators and industry
have successfully cooper-
R E S E A RC H I N D I C AT E S
that nearly percent
of offshore accidents are
in , provides safety and
operating guidelines for off-
not only accomplish public
objectives in the areas of
promoting safety and envi-
ated in the development
caused by human error, even shore operators of all sizes. ronmental protection it can
and implementation of when operations are fully These guidelines are espe- also make good business
recommended practices compliant with regulations. cially valuable to small- and sense by avoiding or contain-

for voluntary safety and In response to these risks, mid-sized producers, who ing accident and pollution
costs. The vast majority of
environmental manage-
Minerals Management may lack the resources and
OCS operators have undertak-
Service, in partnership with experience of larger compa-
ment programs (SEMP) en, in earnest, to develop
the American Petroleum nies in developing and
for Outer Continental and implement SEMP plans.
Institute (API) and the implementing such policies. Minerals Management Service, 62
Shelf (OCS) operations. Offshore Operators This cooperative relation- Federal Register 43346, 8/13/97,
Using the SEMP approach, Committee, has delineated ship between industry and
industry is responsible for voluntary standards that government represents a announced the continuation
voluntarily identifying
address human and organi- successful alternative to pre- of its voluntary partnership
zational errors and help scriptive regulations, with with industry and sponsor-
potential hazards in the
ensure worker safety and MMS collaboration encour- ship of joint industry work-
design, construction, and
environmental protection as aging industry to focus on shops to share best manage-
operation of offshore plat- primary operating goals risk identification and miti- ment practices.
forms and for implement- among offshore producers. gation instead of mere com-
ing specific processes to Recommended Practice for pliance. Because of wide-
improve safety and envi-
Development of a Safety and spread RP implementa-
Environmental Management tion, MMS has recently
ronmental protection.
These measures are
designed to reduce the
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
risk and occurrence of
accidents, injuries, and Fewer accidents and equipment failures, thereby Reduced risk of spills, fugitive air emissions,
oil spills. By 1997, almost reducing operating and remediation costs blowouts, and accidents

all OCS production opera-


Potential avoidance of fines and litigation due to Better protection of sensitive marine eco-
tors were in the process reduced risk of accidents and pollution systems and habitats
of voluntary SEMP
implementation.
Enhanced worker safety, leading to fewer
job-related injuries and illnesses
PRODUCTION

CASE STUDIES

Success in the Field


DOE and its partners blaze a trail to safety
To allay small- and mid-sized producers concerns over the perceived
costs and burdens of RP , DOE recently supported a real-world
pilot implementation project with Louisiana-based Taylor Energy
Company. The goal was to develop a single-model SEMP that could
be shared throughout the industry, streamlining redundancies and
reducing costs, particularly for smaller, independent companies.
Taylor, assisted by subcontractor Paragon Engineering Services, Inc.,
developed and implemented an -part SEMP at seven offshore plat-
forms in the Gulf of Mexico. First, existing site safety procedures were
updated for incorporation into the new safety program. Next, Taylor
developed company-wide documentation of its safety and environ-
mental program management, safety procedures, and safe drilling and
workover practices, as well as a pocket-sized safety handbook summa- SPE, 1993
rizing these practices. In addition, Taylor performed risk-based hazard
analyses at each site and issued site-specific operating procedures for
startup, normal, and emergency response. Employee training on these
An effective plan addresses how to:
general safety guidelines and all site-specific safety practice followed.
Finally, Taylor audited the program to verify its successful implemen- Operate and maintain facility equipment
tation, using an OSHA-based audit protocol that included document
Identify and mitigate safety and environmental hazards
review, visual inspection, interviews, and written testing.
Change operating equipment, processes, and personnel
While long-term outcomes are pending, Taylors lost-time accident
rate declined significantly at the pilot sites over the -month project Respond to and investigate accidents
period. DOE and MMS expect similar experiences at other compa- Purchase equipment and supplies
nies, including eventual operating cost reductions due to SEMP and Work with contractors
the resulting downward trend in accidents.
Train personnel
Taylor is sharing its experience and offering recommendations to
others in DOE- and MMS-sponsored workshops and publications, A fully implemented SEMP covers all phases of offshore
including technical conferences, trade shows, and leading trade operations, including design, construction, startup, operation,
journals. These presentations have enabled many small- and mid- inspection, and maintenance of new, existing, or modified
sized producers to learn firsthand about the program, leading to more drilling and production facilities. (API RP 75)
effective SEMP implementation at their own facilities.

SOURCES AND ADDITIONAL READING CONTACT

Crow, P. New Slant on Safety. Moritis, G. Upstream Safety U.S. Department of Energy. DOE
Oil & Gas Journal, 7/22/96. Management Strives to Reduce Teams with MMS to Document
Risk to Personnel and Environ- Model Safety Practices for
Demonstration of a Safety and
ment. Oil & Gas Journal, Offshore Oil, Gas Producers.
Environmental Management
1/16/95. DOE Fossil Energy Techline,
Program (SEMP) for Offshore Oil U.S. Department of Energy
4/27/95.
and Gas Producing Operations Parker, W., and S. Hanus. Safety Office of Fossil Energy
on the Outer Continental Shelf. Procedures Plan Provides Watson, L., et al. Managing 1000 Independence Avenue, SW
BDM-Oklahoma, Inc., 1/98. Platform-to-Platform Uniformity. SEMP On-Line. SPE 37922, 1997. Washington, DC 20585
Offshore Magazine, 2/97.
DOE/Taylor SEMP Case Study
Nancy L. Johnson
Technology Transfer Report. Safety and Environmental
(202) 586-6458
Taylor Energy Company and Management Program. Minerals
nancy.johnson@hq.doe.gov
Paragon Engineering Services, Management Service.
Inc., 6/96. Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
PRODUCTION

PRODUCTION
TECHNOLOGY Worldwide, onshore and offshore

Vapor Recovery Units

SUMMARY BLUEPRINT ON TECHNOLOGY cu


Vapor recovery units can Vapor recovery units cut up to 95 percent of light
significantly reduce the hydrocarbon vapors vented from crude oil storage
fugitive hydrocarbon
tanks, while recovering valuable gas
emissions vaporizing from
crude oil storage tanks, Resources that vanish pressure changes during onshore use, they are also
particularly tanks associ- into thin air transfer of crude oil), work- employed in offshore set-
ated with high-pressure
reservoirs, high vapor
C RU D E O I L S TO R AG E
tanks hold oil for brief
periods of time to stabilize
ing losses (due to the chang-
ing fluid levels and agitation
of tank contents associated
tings such as marine crude
oil loading terminals.
Producers may opt to pipe
releases, and larger opera-
flow between production with the circulation of new the recovered vapors to nat-
tions. These emissions are wells and pipeline or truck crude through the tank), or ural gas gathering pipelines
typically made up of 40 to transport. During storage, breathing losses (due to daily for sale as a high Btu-con-
60 percent methane, a light hydrocarbons dissolved and seasonal temperature tent natural gas, or to use
potent greenhouse gas, in the oil vaporize and col- and pressure variations). The the gas to fuel on-site opera-
along with other volatile
lect below the tank roof. amount of gas lost depends tions. Alternatively, they may
The chief component of on the stored oils gravity, strip the vapors to separate
organic compounds
this gas is typically methane, the tanks throughput rate, natural gas liquids (NGLs)
(VOCs), and hazardous air although other gases such as and the operating tempera- and methane. In some cases,
pollutants (HAPs). U.S. propane, butane, ethane, ture and pressure of the oil vapor recovery units will
crude oil storage tanks nitrogen, and carbon dioxide being added. reduce emissions to below
emit an estimated 26.6 bil- may be present. These the actionable levels set out
lion cubic feet of methane
vapors also contain HAPs The advantages of in Title V of the Clean
such as the BTEX com- vapor recovery Air Act Amendments. By
per year, representing a
pounds (benzene, toluene, Vapor recovery systems can installing vapor recovery
significant portion of the ethylbenzene, and xylene). capture more than systems, producers may be
oil and gas industrys total As the oil level in the tank percent of these fugitive able to avoid permitting
annual methane emis- fluctuates, these vapors often emissions and recover charges, emissions fees, and
sions. While vapor recov- escape into the air, either substantial amounts of gas other regulatory costs.
ery units are only feasible
through flash losses (due to for use or sale. In addition to
for a minority of existing
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
tanks, this technology can
capture over 95 percent of Lower operating costs if captured gas is used to Significantly reduced greenhouse gas
these emissions and com- fuel on-site equipment emissions

press them for use on-site


Gas recovered for sale as a high-Btu natural gas Improved local air quality, due to reduced
or for sale. These units emissions of VOCs and HAPs
help protect our environ- Gas recovered and stripped to separate NGLs and
ment from harmful air pol-
methane, if volume and NGL prices are sufficient Optimized recovery of a valuable
natural resource
lutants and greenhouse Potential avoidance of regulatory permitting and
gases. compliance costs
PRODUCTION

HOW THE TECHNOLOGY WORKS CASE STUDIES

In a typical recovery system, hydrocarbon vapors are drawn from


the storage tank under low pressure, usually between 0.25 and
Success in the Field
2 psi, then piped to a separator suction scrubber, which collects
any condensed liquids. Any recovered liquids are usually recycled
back to the storage tank. The vapors then are compressed, metered,
reused, or resold.

To prevent the creation of a vacuum in the top of the storage tank


as vapors are removed, the unit is equipped with controls that shut
down the compressor, permitting reflow of vapors into the tank as
necessary. These systems can recover practically all the hydrocarbon
vapors that would otherwise be lost to the atmosphere with nega-
tive environmental impacts.

Major areas of oil


and gas potential
Vapor Recovery Unit

Control
Pilot

Vent Line Vapor recovery units succeed in the


Back Pressure
Valve Austin Chalk field
Suction
In , Union Pacific Resources (UPR) installed vapor
Line recovery units on its crude stock tanks in the Austin Chalk.
Electric UPRs horizontal wells in the area are high-rate producers with
Crude Oil Control
Stock Tank(s) Suction Panel high gas-to-oil ratios. Under these conditions, gas-oil separation
Scrubber
Bypass Valve
is difficult, leading to high volumes of gas in the tanks. The
vapor recovery systems proved very effective in reducing high
Condensate Gas emissions levels and generating profits. UPR recovered an aver-
Return
Check
Gas Sales
Meter Run age of , thousand cubic feet of gas per day, equivalent to the
Liquid
Transfer
Valve annual gas consumption of residential consumers. The recov-
Pump Electric Driven
Rotary Compressor
ered natural gas netted UPR an additional , in revenue
over a one-year period.

SOURCES AND ADDITIONAL READING CONTACT

Alyeska Pipeline Starts Up Nielsen, R., et al. Deepwater Vapor Recovery Unit Saves
Tanker Vapor-Control System at Production Drives Design of 53,000 Bbl During Tanker
Valdez Terminal. Oil & Gas New Gulf Gas Plant. Oil & Gas Loading. Offshore Magazine,
Journal, 5/11/98. Journal, 3/16/98. 8/97.

Lindsey, R., and D. Lucas. Heavy Newsom, V. Determination of Webb, W. Vapor Jet System: An U.S. Department of Energy
Oil Vapor Study. SPE 37886, Methane Emissions from Crude Alternative Vapor Recovery Office of Fossil Energy
1997. Oil Stock Tanks. SPE 37930, Method. SPE 25942, 1993. 1000 Independence Avenue, SW
1997. Washington, DC 20585
Liu, D., and J. Meachen, Jr. The
Use of Vapor Recovery Units in United States Environmental H. William Hochheiser
the Austin Chalk Field. SPE Protection Agency. Lessons (202) 586-5614
26595, 1993. Learned from Natural Gas STAR william.hochheiser@hq.doe.gov
Partners: Installing Vapor Trudy A. Transtrum
Meehan, D. Technology Vital for
Recovery Units on Crude Oil (202) 586-7253
Horizontal Well Success. Oil &
Storage Tanks. 9/97. trudy.transtrum@hq.doe.gov
Gas Journal, 12/11/95.
SITE RESTORATION

SITE RESTORATION
TECHNOLOGY Locations: Worldwide, onshore and offshore

Advanced Approaches
to Site Restoration

SUMMARY BLUEPRINT ON TECHNOLOGY dl


At the end of an oil or gas Advanced technology and practices underscore a wide-
wells economic life, typi- spread commitment to environmental excellence
cally spanning 15 to 30
Closing sites Unplugged or orphaned wells waymitigating potential
years, the well must be
plugged and abandoned,
all production equipment
O F A P P RO X I M AT E LY
. million oil and gas
wells drilled in the United
with no existing owner or
operator are largely a legacy
of historic operations, when
health and environmental
risks and restoring blighted
lands to the benefit of
removed, and the sur- States since , more than site restoration was not con- landowners, the community,
rounding area restored as . million have been plugged sidered necessary. Today, a and the environment, at no
and abandoneda complex new approach to restoration cost to the landowner.
closely as possible to its
effort involving significant integrates advanced technology, OERBs success demonstrates
original state to prevent
planning and expense. increased research and devel- industrys commitment to
potential environmental or Onshore, wellbores are per- opment, and a spirit of vol- preserving the lands on which
public health risks. To manently plugged with untarism and responsibility. it operates.
ensure the future ecologi- cement to prevent any flow of
cal and economic viability subterranean fluids into the An exemplary model Diverse approaches
wellbore, thereby protecting A highly effective industry- Rather than employing a
of closed site lands, the
groundwater. Waste-handling led site restoration program is one-size-fits-all approach to
industry is continually
pits are closed, and storage run by the Oklahoma Energy site restoration, industry is
developing and applying tanks, wellheads, processing Resources Board (OERB), turning to flexible Risk-Based
innovative site restoration equipment, and pumpjacks with near-unanimous support Corrective Action (RBCA)
practices and technolo- removed. Offshore, wellbores from Oklahoma producers processes to ensure swift,
gies, including Risk-Based are sealed below the sea floor and royalty owners, whose efficient clean-ups. A joint
and platforms are fully or annual voluntary contribu- American Petroleum
Corrective Action, soil
partially removed, or toppled tions solely fund this unique Institute-Gas Research
bioremediation, and
in place as part of artificial initiative. Since , this pri- Institute (GRI) project has
wetlands restoration. In reef programs. About , vatized state agency has resulted in development of an
addition, operators are onshore wells are plugged and restored more than , E&P-specific set of RBCA
actively supporting abandoned annually, and orphaned and abandoned tools to help operators under-
industry-led clean-up offshore platforms decom- well sites across Oklahoma take risk-based remedial plan-
efforts such as those
missioned each year. with more sites under ning. In this approach,
being carried out by the
Oklahoma Energy ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
Resources Board, a
Reduced long-term environmental clean-up Mitigation of potential public health and envi-
privatized state agency costs and lowered risk of future liability ronmental risks
funded solely by industrys
voluntary contributions. Increased economic value of land returned to Restoration of sensitive habitats and ecosystems
productive agricultural, residential, or commer-
cial uses Organic cleaning of petroleum-stained soil
through bioremediation, maintaining and
sometimes even improving soil health
SITE RESTORATION

human-health and ecologi- healthy, and can also controlled mesocosm green- found that certain processed
cal-risk analyses and deci- enhance soil health. house facilities to simulate drill cuttings appear capable
sions are integrated with the wetlands full range of tidal of supporting healthy wet-
corrective action process, Within the natural gas fluctuations, researchers have lands vegetation.
ensuring that remedial mea- industry, R&D efforts focus
sures are appropriate given a on remediating mercury-
specific sites characteristics contaminated sites, which CASE STUDIES
and risk levels, and that can entail potentially signifi-
resources are focused first on cant environmental and Success in the Field
sites presenting the greatest public health risks. In con-
potential risk. junction with DOE, GRI is
examining the extent of the Proactive, global, site restoration
Emerging bioremediation contamination, developing Together with other companies and the State of California,
technology is a cost-effective risk-based prioritization Phillips Petroleum is leading the restoration of the abandoned
tool with powerful environ- models, and testing -acre Bolsa Chica oil field near Huntington Beach, California.
mental advantages. During advanced remediation tech- The project includes cleaning up old well sites and building a
E&P operations, soil layers nologies, including physical tidal inlet where waterfowl can rest and feed before migrating
can become stained with separation, chemical, and , miles across the Pacific Flyway.
hydrocarbon molecules rang- thermal techniques. In Phu Khieo, Thailand, Texaco restored a nonproductive
ing from heavy crudes to exploratory drill site, although not legally obligated under Thai
volatile organic compounds. New techniques for restor-
law, by treating drilling wastes, capping the site with clean topsoil,
Bioremediation involves ing wetlands lost to saltwa-
and building dikes to support rice paddies and sugar cane fields.
stimulating existing or plac- ter encroachment are under
The Thai government has since proposed Texacos approach as a
ing carbon-eating microor- development. For example,
regulatory environmental management model.
ganisms in stained soils to with assistance from DOE-
digest excess hydrocarbons funded research at Working with Kansas State agencies, Mobil E&P U.S., Inc. biore-
or break them down into Southeastern Louisiana mediated hydrocarbon-stained soils at its Hugoton Gas Field.
simpler, non-toxic compounds University (SLU) is demon- Using cow manure as a soil nutrient and microbial base catalyst,
such as carbon dioxide and strating that drill cuttings total petroleum hydrocarbon levels were reduced by more than
water. Bioremediation main- can be safely used to restore percent. At the projects conclusion, native grasses were planted to
tains the microbial popula- and create wetlands. Using re-vegetate the area.
tions needed to keep soil SLUs unique temperature-

SOURCES AND ADDITIONAL READING CONTACT

Chamberlain, D., et al. Phillips Petroleum Company. Shaffer, G., et al. Restored Drill
Vegetative Restoration at 1997 Health, Environment, and Cuttings for Wetlands Creation:
Petroleum Exploratory Drillsites Safety Report. Year One Results of a
in the Ecuadorian Amazon. Mesocosm Approach to Emulate
Robb III, A., and P. Hoggatt.
Society for Ecological Field Conditions Under Varying
A Cost Effective Bioremediation
Restoration International Hydrologic Regimes. U.S. Department of Energy
Strategy Using Low Technology
Conference, Seattle, Southeastern Louisiana Office of Fossil Energy
Resources for Reclamation of
Washington, 9/95. University, 12/96. 1000 Independence Avenue, SW
Dry Land Hydrocarbon
Washington, DC 20585
DeVaull, G., et al. Risk-Based Contamination: A Case Study. Shaw, B., et al. Microbes Safely,
Corrective Action Tools for SPE 29759, 1995. Effectively Bioremediate Oil Nancy L. Johnson
Exploration and Production Field Pits. Oil & Gas Journal, (202) 586-6458
Rosenfeld, A., et al. Minimizing
Facilities. Gas Research Institute, 1/30/95. nancy.johnson@hq.doe.gov
the Environmental Impact of Oil
www.gri.org
and Gas Developments in the Texaco, Inc. Environment, Health
Trudy A. Transtrum
Exxon Corporation. Environment, Tropics. Harts Petroleum and Safety Review 1996.
(202) 586-7253
Health and Safety Progress Report. Engineer International, 7/97.
trudy.transtrum@hq.doe.gov
Oklahoma Energy Resources
Board, www.oerb.com
SITE RESTORATION

SITE RESTORATION
TECHNOLOGY Locations: Gulf of Mexico

Rigs to Reefs

SUMMARY BLUEPRINT ON TECHNOLOGY dm


Industry, regulators, and Converting obsolete platforms into artificial reefs benefits
environmentalists now rec- marine habitats, commercial fishers, divers, vacationers,
ognize the advantages of
and the oil and gas industry
toppling decommissioned
offshore platforms and Removing rigs to shore for refurbishment or increase as more decommis-
anchoring them on the sea
floor as permanent artificial T H E U.S. M I N E R A L S
Management Service
(MMS) requires removal of
scrapping. This option is
often elected when the plat-
form is not located near a
sioned deepwater platforms
require removal.
reefs. Under existing State
programs, oil and gas com-
all platforms in Outer rigs to reefs zone. The typical -story steel
Continental Shelf (OCS) jackets that support offshore
panies can donate plat-
waters within one year from Creating artificial reefs platforms provide acres of
forms to States for use as production shutdown. When decommissioning in habitat for various under-
artificial reefs, along with a Currently, platform removals deeper waters (generally water flora and fish species
percentage of their cost from the Gulf of Mexico beyond feet) at more within six months to one year
savings to be used for reef OCS are averaging plat- remote locations, operators of initial placement, platforms
maintenance and develop-
forms per year. MMS esti- can reduce removal costs sig- are covered with marine life.
mates that over half of about nificantly by toppling struc- The submerged hard surfaces
ment. Designed for marine
, remaining structures tures (fully or partially) in invite invertebrates such as
environments and imper- will require removal by . place as artificial reefs, or barnacles, corals, sponges,
vious to displacement or For smaller structures in shal- towing them to a designated clams, bryo-zoans and
breakup, these steel plat- low waters, companies typi- site for toppling. To date, hybroids, which in turn
forms make ideal reefs. cally dismantle the platform about percent of the Gulf s attract resident reef fish such
Thriving habitats are typi-
using explosives, or some- platform removals have been as snapper and grouper and
times torches or cutters, and converted to artificial reefs; transients like mackerel and
cally well established on
then tow the deck and jacket this percentage is expected to billfish. Fish are also drawn by
working rigs, and disman-
tling and moving them
threatens these habitats.
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
To date, more than 100
donated offshore platforms
Potential for significant reductions in platform Enhanced protection and nurture of complex
removal and disposal costs, particularly in marine ecosystems and habitats
have been placed off the
locations where partial removal is viable
coasts of Texas, Louisiana, Creation of new marine habitats
and other Gulf States, Industry cost savings fund State reef mainte-
nance and development programs Reduced impacts of platform demolition and
where they host complex
relocation
ecosystems that attract fish
Enhancement of commercial fishing
and enhance commercial opportunities Increased recreational use of water resources
fishing and recreational
activities.
Promotion of local tourism through enhanced
recreational fishing and diving opportunities
SITE RESTORATION

CASE STUDIES

Success in the Field


United States

Gulf of
Mexico

the shape, size, and open- The first planned rigs-to- Rig reefs boost tourism in South Texas
ness of these structures, reefs conversion took place Mobil Exploration and Production U.S., Inc., performed an envi-
which attract an estimated in , when an Exxon- ronmentally outstanding conversion in . Over a -day period,
to times more fish owned subsea template Mobil dismantled six platforms located in several South Padre Island
than the Gulfs naturally located offshore Louisiana blocks, moving four jackets miles to Port Mansfield Liberty Ship
flat, soft bottom. was moved to offshore Reef and two jackets miles to Port Isabel. Mobil elected to cut
Florida. The National away the platform legs rather than blast them, despite explosives
Removing platforms after Fishing Enhancement Act, being cheaper, faster, and more reliable. Mechanical cutting avoided
shutdown threatens these passed in , led to the undue harm and disruption to the rich marine life inhabiting the
complex fish populations as development of the rigs offshore environmentally sensitive South Padre Island.
well as the commercial and National Artificial Reef
recreational industries that Program and formal sup- The added time and expense of cutting and transport negated any
rely on them. Through rigs port from MMS. State pro- cost savings, but Mobil still earned tremendous payback. Jeffrey
to reefs, industry and State grams followed in Louisiana Passmore of Mobil noted: We were able. . .to give. . .structures with
governments are collabo- () and Texas (); to years of [marine habitat] buildup on them. Jan Culbertson,
rating to ensure the greatest Mississippi, Alabama, and Texas Parks and Wildlife Department, commented, We almost
possible number of platform Florida have since formed begged Mobil to take the structures to Port Isabel. Thats where our
conversions, thereby protect- their own programs. Today, tourism dollars are. Mobil bent over backward to give us their struc-
ing rich marine ecosystems artificial reefs exist around tures in a natural state with no animals hurt or removed. We even
and enriching the Gulfs the world, with the Gulf of had turtles living on the structures that we had to move out of the
commercial fishing and Mexico boasting the most way. All the animals, the little blennies [fish] that were inside the
recreational opportunities. extensive and successful barnacles, all made it to their new reef-site home.
conversions.

SOURCES AND ADDITIONAL READING CONTACT

Artificial Reefs: Oases for Marine Kebodeaux, T. Death of a Moritis, G. Industry Tackles
Life in the Gulf. MMS Feature Platform: Artificial reef programs Offshore Decommissioning. Oil
Stories, 3/18/94. provide a rebirth to decommis- & Gas Journal, 12/8/97.
sioned structures. Underwater
Gulf of Mexico Artificial-Reef Perry III, A., et al. Amoco
Magazine, Spring 1995.
Programs Benefit Industry, Local Eugene Island 367 Jacket U.S. Department of Energy
Economies, and the Moritis, G. Gulf of Mexico Sectioned, Toppled in Place. Oil Office of Fossil Energy
Environment. Journal of Platform Operators Cope with & Gas Journal, 5/1/98. 1000 Independence Avenue, SW
Petroleum Technology, 1/95. Abandonment Issues. Oil & Gas Washington, DC 20585
Pulsipher, A., et al. Explosives
Journal, 5/6/96.
Remain Preferred Method for Susan Gregersen
Platform Abandonment. Oil & (202) 586-0063
Gas Journal, 5/6/98. susan.gregersen@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
SITE RESTORATION

SITE RESTORATION
TECHNOLOGY Locations: United States

Road Mix and


Roadspreading

SUMMARY BLUEPRINT ON TECHNOLOGY dn


Tank cleaning and other Crude oil residuals and produced water can be safely and
common exploration and creatively recycled for road building, stabilization, de-icing,
production operations rou-
and dust suppression
tinely generate large amounts
of non-hazardous crude oil Creative use of oilfield waste light duty road paving or dust The resulting road mix can
wastes sometimes suitable
for use as road paving (road
A S LANDFILL AND
other traditional disposal
methods become more limit-
suppression.

Tank residuals are the largest


either be stockpiled or
applied immediately with
standard paver/spreader
mix) materials. These hydro-
ed and costly, in some areas source of recycled binding equipment, and compacted if
carbon residuals act as the petroleum industry is agents. These residuals, made necessary. Depending on final
binders, and can be mixed on- increasingly recycling various up of fine sediments or sands use, the hydrocarbon content
site with native soils or oilfield wastes as road mix and heavy, low-volatility of the raw materials, and the
imported aggregate, then
material. hydrocarbons that settle dur- type of road mix needed,
ing storage, are periodically petroleum facilities may add
safely paved into roads.
Paralleling the commercial cleaned out of tanks by high- commercial asphalt cements
Similarly, another routine oil-
road mixing process, the pressure water jets, creating a to their road mix.
field waste, produced water petroleum industry mixes slurry that is dewatered to
the brine or brackish water crude oil residuals from tank make sludge. The sludge Other oilfield wastes, such as
extracted with oil or gas dur- cleaning, sump abandon- with cohesive and adhesive completion and workover flu-
ing the production process
ments, and production flow- properties similar to commer- ids and produced brine, are
line leaks with imported cial road mix materialsis also suitable for roadspread-
can be used for road de-icing
aggregate (coarse binding mixed with aggregate, graded, ing to suppress dust or de-ice
or dust control. Road mixing
materials) or native soils for and cured. unpaved roads. In northern
and spreading technology
provides useful products,
significant disposal cost-
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
savings for producers, and
Significant reduction in costs and potential Reduced waste volumes to landfill or reinject
conservation of limited
liability associated with management and into the earths subsurface, thus reducing
landfill capacity. Minimizing disposal of nonhazardous oilfield wastes potential environmental risks and future liability
landfill use also significantly
reduces the potential for reac- More expensive alternatives such as paving Reduced dust and particulate matter emissions
would be necessary without recycled road mix from unpaved roads
tive hydrocarbon emissions
and soil and water contami- Landfill space conserved Greatly reduced reactive organic hydrocarbon
nation. While this practice compound emissions, compared with landfill
Conservation of natural resources through disposal
promises environmental
product substitution
benefits under certain condi-
Demonstrated low hydrocarbon and metal
tions, application is limited leachability
and discrimination necessary.
Demonstrated nonhazardous by acute aquatic
testing
SITE RESTORATION

CASE STUDIES

States, using these wastes to adverse environmental Success in the Field


de-ice roads instead of salt impacts. Similarly, brine
can conserve this limited spreading to stabilize road-
natural resource. ways and control dust has
been used effectively in cer-
Today, the petroleum tain areas for years. The pri- Roadspreading in Pennsylvania
industry uses most of its mary alternatives to road A portion of the . million barrels of brine produced annually
recycled road mix to devel- mixing and roadspreading by Pennsylvanias oil and gas wells is spread on its unpaved
op access roads to remote are landfilling the solid secondary roads for dust suppression and road stabilization.
exploration and production wastes at an average cost of To minimize environmental impacts from this practice, includ-
sites and to control dust in per ton, and subsurface ing the risk of contaminants leaching into surface or ground
production areas. California reinjection of produced waters, the Pennsylvania Department of Environmental
operators have been using water for disposal or Protection (DEP) has developed mandatory roadspreading
crude oil-impacted waste enhanced oil recovery, also guidelines for brine generators, transporters, applicators, and
materials as road mix for very costly. roadway administrators.
nearly a century with no
Funded by a Federal Clean Water Act grant, the DEP tested
water quality impacts along seven unpaved roadways in western
Pennsylvania on which brine had been spread. Between
and , surface water samples were taken from culverts, road-
side ditches, streams, and ponds at the selected road sites, while
groundwater was sampled from monitoring wells installed to
measure the impact of brine-spreading on water quality. Over
the sampling period, lysimeters were used to determine whether
brine had migrated from the roadbed. Soil and roadbed samples
were also taken to identify any leaching or accumulation of
heavy metals or other harmful pollutants. Through monitoring
and subsequent analyses, the DEP concluded that although
potential exists for harm to surface water and groundwater from
brine migration or run-off, risks could be significantly mini-
mized by controlling the frequency and application rate of brine
and by following the roadspreading guidelines. Roadspreading
offers a cost-effective means to recycle and dispose of a portion
of Pennsylvanias produced water waste stream, with minimal
environmental impact.

SOURCES AND ADDITIONAL READING CONTACT

Cal/EPA Exploration and Kabrick, R., and L. Rogers. Western States Petroleum
Production Regulatory Task Innovative Treatment Association. Evaluation and
Force. Beneficial Use of Road Alternatives for Oily Wastes Review of the Petroleum
Mix: Clarification of Issues and Generated During the Industrys Road Mix Process.
Regulatory Roles. 12/96. Exploration and Production of 3/93. U.S. Department of Energy
Oil and Gas. SPE 24564, 1992. Office of Fossil Energy
Cornwell, J. Road Mixing Sand
1000 Independence Avenue, SW
Produced From Steamdrive Pennsylvania Department of
Washington, DC 20585
Operations. SPE 25930, 1993. Environmental Protection.
Bureau of Oil and Gas Nancy L. Johnson
Hampton, P., et al. Minimization
Management. Fact Sheet: Non- (202) 586-6458
and Recycling of Drilling Waste
Point Source Report on nancy.johnson@hq.doe.gov
on the Alaskan North Slope. SPE
Roadspreading of Brine for Dust
20428, 1991.
Control and Road Stabilization. Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
SENSITIVE ENVIRONMENTS

SENSITIVE ENVIRONMENTS
TECHNOLOGY Locations: United States, onshore

DOE-BLM Partnership

SUMMARY BLUEPRINT ON TECHNOLOGY do


The Bureau of Land Strategic alliances leverage DOE and BLM resources
Management (BLM) and and expertise to protect cultural resources and
the Department of Energy
sensitive environments
(DOE) have joined forces
to enhance protection of The role of BLM pipelines and transmission expertise. Cooperative efforts

environmental and cultural
resources on sensitive B LM OVERSEES
million acres of Federal
land and million acres of
lines. Of the total . billion
in annual revenues these
lands bring, nearly mil-
under this agreement have
included DOE participation
on BLM streamlining and
public lands. In these joint
subsurface mineral resources, lion, or percent, is gener- environmental incentives
projects, advanced tech-
primarily in the western ated by royalties, rents, teams and BLM contributions
nologies and practices are United States and Alaska, bonuses, sales, and fees from to DOEs oil and gas data-
shared across BLM, DOE, about an eighth of the land in oil and gas operations. The bases. In addition, as part of
and the oil and gas indus- the United States. Federal total direct and indirect eco- the MOU activities, DOE
try to improve resource lands under BLM oversight nomic output of oil and gas and BLM have formed a
management and access
include extensive grasslands, production is estimated at Federal Lands Technology
forests, high mountains, arc- nearly billion annually. Partnership to address access
to Federal lands. Currently,
tic tundra, and deserts, as issues and provide technical
teams are studying issues well as many fish and wildlife The role of DOE support to Federal land man-
such as the reversal of habitats and archaeological DOE and BLM have entered agers. Fiscal year was the
subsurface damage to and historical sites. These into a memorandum of first year of DOE funding
freshwater aquifers at lands contain subsurface understanding (MOU) to under this partnership. The
abandoned well sites in
resources amounting to eight help improve access to Federal two agencies solicited projects
percent of the natural gas land for oil and gas develop- from BLM field offices and
Oklahoma, the protection
and five percent of the crude ment, consistent with effective worked together to prioritize
of archaeological remains oil produced annually, in environmental protection. the proposals. Three resulting
in Nevada, and the addition to resources like This includes technology projects initiated this year are
improvement of air quality coal, forest products, grazing transfer, data sharing, techni- discussed here.
monitoring in remote forage, and rights-of-way for cal support, and sharing of
Wyoming locations. In
concert with Federal agen-
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
cies striving to balance
Enhanced Federal revenues from increased oil Greater protection of environmentally and
competing demands for
and gas production on public lands culturally sensitive areas
the use of public lands,
the DOE/BLM partnership Accelerated planning and permitting schedules, Increased, more efficient recovery of oil and
seeks to ensure maximum reducing development costs and time gas on Federal lands
resource recovery consis-
tent with high levels of
environmental protection
and cultural sensitivity.
SENSITIVE ENVIRONMENTS

CASE STUDIES

Success in the Field

Well decontamination in Oklahoma


BLM recently discovered brine and salt water contamination of
both soil and freshwater sources on land held in trust to the Pawnee
Indians in Payne County, Oklahoma. Today, BLM and DOE are
working together with the Oklahoma Energy Resources Board,
an industry-funded, publicly chartered site restoration agency, to
reverse subsurface damage to a freshwater aquifer and to restore
the areas damaged grasses, shrubs, and trees. Knowledge gained
in this project will apply to a wide range of water-injection and
water-disposal well problems, and technology developed for sal-
vaging the contaminated aquifer will benefit other damaged sites
agencies to complete air quality impact assessments required as
on public lands.
part of Environmental Impact Statements (EIS). Because new oil
and gas development projects are permitted only on condition
Archaeological and resource development in Nevada
that air quality will not significantly deteriorate, future access to
BLM, DOE, and state agencies in Nevada are developing a predic-
some resources may be denied where air monitoring data are
tive geographical information system (GIS) model that will help
insufficient, even in areas where actual air quality impacts would
protect the rich archaeological remains of the northern Railroad
be minimal.
Valley in Nye County, Nevada. This will enhance access to the areas
rich oil and gas resources, often restricted by concerns about archae- To address this concern, BLM and DOE, in collaboration with
ological remains. A potentially powerful management tool, the other agencies, are establishing a network of low-cost, portable,
model provides critical information on both subsurface resources solar-powered monitoring stations in southwestern Wyoming,
and cultural sites, making it easier to determine lease boundaries, which has seen a marked increase in oil and gas development
isolate sensitive areas, and accelerate resource development. For over the last five years. These stations will measure ambient air
example, by identifying the likelihood of precious cultural resources concentrations and calculate dry deposition of nitrogen oxides
in a specific area within the Nye Valley, the model will improve the and sulfur oxides in remote areas where environmental concerns
routing of access roads and pad orientation, and help manage are high and development is likely to increase. This will greatly
resource, range, wildlife, and recreation programs. enhance permitting decisions and EIS preparation. Five aeromet-
ric stations currently used to measure climate and air quality para-
Air quality monitoring in Wyoming meters will be converted for operational air quality monitoring.
Since ongoing air quality data is often unavailable in many remote Three will be mobile; the other two will remain fixed to provide
areas, it is becoming increasingly difficult for land management long-term air quality data.

SOURCES AND ADDITIONAL READING CONTACT


DOE Office of Natural Gas and United States Department of the
Petroleum Technologies. Oil and Interior. Bureau of Land
Gas Technology Partnership for Management. Working Together
Federal Lands. for the Health of the Americas
Public Lands, 1997 Annual
Hochheiser, H. W. Achieving
Report. U.S. Department of Energy
Effective Environmental
Office of Fossil Energy
Protection: An Update on DOEs
1000 Independence Avenue, SW
Environmental Research and
Washington, DC 20585
Analysis Program. Paper pre-
sented at the 5th International H. William Hochheiser
Petroleum Environmental (202) 586-5614
Conference, 10/98. william.hochheiser@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
SENSITIVE ENVIRONMENTS

SENSITIVE ENVIRONMENTS
TECHNOLOGY Locations: Worldwide

Coastal and Nearshore


Operations

SUMMARY BLUEPRINT ON TECHNOLOGY dp


From Alabamas Mobile Cooperative planning, advanced technology, and detailed
Bay to the North Irish Sea, habitat enhancement render operations virtually invisible
operators are employing
advanced exploration, Gulf coast breakthrough and gas resource zone, chal- archaeological and cultural
drilling, production, and
site restoration techniques
A FE D E R A L LY M A N A G E D
recreational area and
wildlife and nature preserve,
lenging private parties who
own subsurface oil and gas
rights to develop these resources
resources potentially affected
by the operations. Bright &
Co.s plan included site man-
to protect sensitive coastal
Padre Island National Seashore under the strict environmental agement equipment to mini-
wetlands and nearshore
has , acres of beaches, regulatory oversight of several mize the operations footprint
environments. For exam- grasslands, tidal flats, dunes, Federal and State agencies, and safely manage wastes as
ple, through collaborative and ponds that are home to a including the U.S. Army Corps well as a directional drilling
planning with several huge variety of plant life as well of Engineers, the National Park strategy that would minimize
Federal and State agencies
as marine life, reptiles, sea Service, and the Texas Railroad contact with sensitive wetlands
turtles, coyotes, waterfowl, and Commission. and environmental impacts.
and state-of-the-art drilling
more than species of birds, Upon plan approval, Bright
and site restoration tech-
including some threatened or Planning for all contingencies & Co. also posted a ,
nologies, Bright & Co. endangered species. Hiking, Before Bright & Co. could performance bond, the esti-
drilled an environmentally camping, fishing, nature begin drilling, the National mated maximum cost of site
unobtrusive exploratory studies, and water sports attract Park Service required a com- reclamation and clean-up should
well on the Padre Island
some , visitors annually. prehensive plan of operations, an oil spill occur. Finally, a
This -mile long barrier island including a timetable and U.S. Army Corps of Engineers
National Seashore. In con-
sits four feet above an under- description of all proposed permit to build an access road
formance with extensive
ground freshwater aquifer, construction, drilling, across reclaimed wetlands was
regulatory requirements, which is the primary source of completion, and production obtained, requiring Bright &
every phase of Brights drinking water for area wildlife activities; spill control and Co. to compensate the .
operation was designed to and thus critical to the islands site reclamation plans; envi- acres of nontidal wetlands
minimize environmental
ecosystem. The island is also ronmental impact statements; lost to road construction with
situated in a high-potential oil and documentation of the . acres of new wetlands.
impacts, leaving virtually no
footprint on the area.
Although no hydrocarbon
resources were found, the ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

undertaking demonstrated Sensitive project execution averted potential Virtually no footprint following operation
that exploratory drilling negative impacts on a popular tourist area
Habitats, wildlife, and cultural resources intact
can be done without
Cost-effective, low-impact operations proven and unmolested
disturbing coastal
successful
environments. The use Fresh and marine water resources meticulously
of advanced technology safeguarded
helps preserve delicate
Reduced air emissions and lower risk of fuel
ecosystems.
spills through use of electric equipment
SENSITIVE ENVIRONMENTS

A no footprint drilling site reduced air emissions and Bright & Co. plugged the ground surface to its original
Using , tons of imported, potential oil leaks. An well, removed the pad and contours, and reseeded with
compacted caliche, Bright advanced closed-loop mud access road, restored the native grasses.
& Co. built a .-mile, system collected drill cuttings
-foot wide access road to in -barrel boxes mounted
the drill site. They con- on tracks for immediate
structed a -foot square transport and disposal off site.
CASE STUDIES

caliche pad, covered by a


polyethylene liner, on which Bright & Co. employed Beyond South Padre Island
they mounted the drill rig, directional drilling to hit the
mud tanks, and pipe racks. targeted pay zonethe Frio
The company then built a Marg A sand at approximately Advanced technology is enhancing access to oil and gas resources
berm around the liner and ,-foot true vertical while protecting sensitive coastal and wetlands ecosystems
sloped the pad to capture depthlocated beneath a throughout the United States:
any discharges in a subsur- large wetlands area. Directional In Mobile Bay, Alabamaa complex marine environment with
face cellar, draining it with drilling allowed Bright & Co. important commercial fisheries and recreational facilitiesARCOs
a centrifugal pump. A three- to avoid reclaiming additional Dauphin Island production facility has successfully minimized
foot high levee ringed the wetlands for the drilling pad. visual and environmental impacts while developing the areas rich
pad perimeter, ensuring no An -inch polycrystalline natural gas resources. Less than three miles from Dauphin Island
groundwater contamination. diamond compact drill bit residents, the ARCO platforms unique structural design minimizes
was selected to maintain aesthetic drawbacks. The facility also used advanced horizontal
Advanced technology at work direction and angle, prevent drilling techniques to reduce the production footprint.
Mesa Drilling Inc. drilled the formation damage, and mini-
well with a diesel-electric, sili- mize drilling time and air Covering , acres in southwest Louisiana, the Sabine
con controlled rectifier unit, emissions. At an average rate National Wildlife Refuge sustains more than species of birds,
significantly reducing noise of feet per hour over alligators, and marsh mammals, and is a major wintering ground
impact on visitors and days, the well was first drilled for migratory waterfowl. In , Vastar Resources selected the
wildlife. Most of the rigs vertically to , feet, then refuges Black Bayou as an exploratory prospect. In close coopera-
components were wheel- angled degrees per feet, tion with the U.S. Fish & Wildlife Service and other Federal and
mounted, thus minimizing reaching an ultimate angle of State agencies, Vastar used innovative drilling, waste minimization,
equipment mobilization degrees and a measured and site restoration techniques to drill two exploratory wells in
across the beach. Electric depth of , feet. When no this fragile coastal wetlands area, with minimal impacts.
mud pumps and draw works productive zones were found,

SOURCES AND ADDITIONAL READING CONTACT

Browning, G., et al. Layfield, R., et al. Dauphin Island Ritchie, C., et al. Environmental
Environmental Considerations Natural Gas Project. Journal of Impact of Offshore Operation
for 3D Seismic in Louisiana Petroleum Technology, 1/94. Reduced Using Innovative
Wetlands. SPE 35781, 1996. Engineering Solutions. SPE
Longfield III, H., et al. Economic
28736, 1994.
Hunt, M. Drilling Site on a and Environmentally Beneficial
U.S. Department of Energy
National Seashore Required Reuse of Drilling Waste. SPE Rymell, M., et al. Development
Office of Fossil Energy
Extra Environmental 25929, 1993. and Application of Environ-
1000 Independence Avenue, SW
Precautions. Oil & Gas Journal, mental Models in the
Longfield III, H., and T. Akers. Washington, DC 20585
11/6/95. Assessment of Exploratory
Economic Environmental
Drilling in a Sensitive Coastal Susan Gregersen
Kerns, J., and J. Parker. Management of Drilling
Region, Isle of Man, UK. SPE (202) 586-0063
Managing Exploration Activities Operations. SPE 23916, 1992.
37872, 1997. susan.gregersen@hq.doe.gov
in Environmentally Sensitive
Macduff-Duncan, C., and
Inshore Waters. SPE 26749, 1993. Trudy A. Transtrum
G. Davies. Managing Seismic
(202) 586-7253
Kudla, M., and B. McDole. Exploration in a Nearshore
trudy.transtrum@hq.doe.gov
Managing Drilling Operations Environmentally Sensitive Area.
in a Sensitive Wetlands SPE 30431, 1995.
Environment. SPE 35780, 1996.
SENSITIVE ENVIRONMENTS

SENSITIVE ENVIRONMENTS
TECHNOLOGY Locations: Alaskas North Slope

Insulated Ice Pads

SUMMARY BLUEPRINT ON TECHNOLOGY dq


New, prefabricated insula- Extending the drilling season with insulated ice pads can
tion panels can be used to minimize environmental disruption and exploratory drilling
preserve ice drilling pads
footprints, while reducing costs
from arctic summer thaw,
thereby extending the Drilling in the Arctic less environmentally intrusive Innovative insulated ice pads,
exploratory drilling season
as much as 50 percent. C LIMATIC CONDITIONS
on Alaskas North Slope
have restricted the exploratory
and less costly than gravel
drilling pads, their imperma-
nence means an additional
however, can extend the avail-
able drilling season to a total
of days and effective well
Insulated pads permit ice
drilling season in remote round of equipment demobi- operations up to days,
pad construction prior to
Arctic environments to to lization and storage at an off- potentially enabling comple-
the winter drilling season,
days. The tundra has to site gravel pad. If, as is com- tion of one or perhaps two
enabling drilling opera- be frozen solid enough to mon, the exploratory well is exploratory wells in a single
tions to begin some two allow equipment transport to not completed, remobiliza- season. Single-season comple-
months earlier than if the drilling site as well as tion the following season is tions substantially reduce
the pad had been built
sustainable ice road and ice necessary. Such operations mobilization costs and related
pad construction and mainte- entail environmental distur- environmental effects, and
in December for a mid-
nance. At its longest, the bance and additional costs. also cut time between initial
January drilling start
tundra travel season extends investment and returns.
the typical exploratory from November through
drilling schedule. The May, although specific condi-
extended season allows tions dictate load weight on
single-season well com-
any given date. At the drilling
site, ice pad construction,
pletions, which reduce
often as large as an acre,
seasonal equipment
is usually begun in early
mobilization and environ- December, although Novem-
mental impacts, as well ber is possible under optimal
as associated costs. conditions. By mid-May,
equipment must be removed
to a non-tundra area. While
conventional ice pads are far

ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS

Single-season exploratory well completions, Smaller footprints and less time on-site
greatly reducing mobilization costs
Elimination of seasonal equipment mobiliza-
Valuable subsurface data one year earlier tion, minimizing environmental impacts on
than would otherwise be possible, enhancing land and air
operational planning
SENSITIVE ENVIRONMENTS

CASE STUDIES

Success in the Field


Drilling two months earlier,
saving more than $2.3 million
When a BP Exploration (Alaska) Inc. (BPXA) engineering
feasibility study indicated that constructing an insulated ice pad
in March at Yukon Gold # on the North Slope would
significantly extend the winter drilling season, BPXA built a
-by--foot ice pad covered with nearly 600 wind-resistant
insulating panels. Summer visits confirmed that the ice beneath
Alaska
the panels remained sufficiently frozen. When the panels were
disassembled in October , they had not bonded to the rest-
ing surface, or scattered, and nearly percent were in excellent
condition and reusable.
BPXA began drilling in mid-November, two months ahead of
conventional Arctic practice. With such an early start, Yukon
Gold # was completed in time to begin drilling immediately at
nearby Sourdough #, where the insulated panels were placed
under the rig to give BPXA the option of leaving the rig on
location over the summer and avoiding remobilization should
the well not be completed before seasons end. This was not nec- METRICS
essary, however, as the Sourdough well was also successfully
Results of a BPXA study, comparing drilling season length
completed during the same season. using conventional practices versus insulated ice pads
Overall, BPXA netted a cost savings of more than . million
Time Period Conventional Insulated Ice Pad
from the two single-season completions. In addition, the tundra
endured significantly less impact than would have been the case Construction start date December 115 Previous Winter
Start of rig mobility December 1531 October 721
had seasonal equipment mobilization been required. Subsequent
Spud date for first well January 1531 November 721
site monitoring showed no long-term environmental impacts.
Tundra-travel end of season April 29May 22 April 29May 22
End of well operations April 15May 8 April 15May 8

Total Season Available 135170 days 175205 days

Effective Well Operations Season 75110 days 145160 days

SPE 35686, 1996

SOURCES AND ADDITIONAL READING CONTACT

Hazen, B. Use of Ice Roads and Stanley, M., and B. Hazen.


Ice Pads for Alaskan Arctic Oil Insulated Ice Pad Technology
Exploration Projects. Enables Extending Drilling on
Symposium paper for Science, Alaskas North Slope. SPE
Traditional Knowledge, and the 35686, 1996.
Resources of the Northeast U.S. Department of Energy
Planning Area of the National Office of Fossil Energy
Petroleum Reserve-Alaska, 4/97. 1000 Independence Avenue, SW
Washington, DC 20585

Arthur M. Hartstein
(301) 903-2760
arthur.hartstein@hq.doe.gov

Trudy A. Transtrum
(202) 586-7253
trudy.transtrum@hq.doe.gov
SENSITIVE ENVIRONMENTS

SENSITIVE ENVIRONMENTS
TECHNOLOGY Locations: Alaskas North Slope

North Slope Operations

SUMMARY BLUEPRINT ON TECHNOLOGY dr


North Slope oil and gas Technology advances protect the environment and
operations showcase a improve recovery under hostile arctic conditions
number of technological
triumphs over powerful Low-impact operations resources. For example, the become the new standard for
natural forces, enabling increase resource recovery, exploration sector has devel- exploration. Its low-cost, low-
reduce costs, and protect oped innovative ice-based impact performance contin-
successful operations in
sensitive habitats transportation infrastructure ues to be refined by tech-
this extreme, sensitive
environment. Since these
resources represent nearly a
T HE LARGEST OIL
field in North America,
the North Slopes Prudhoe
serving remote locations, even
during winters characterized
by -F temperatures, -
niques like ice pad insulation,
which can extend drilling sea-
sons and reduce equipment
quarter of U.S. oil reserves, Bay has estimated total recov- foot snowdrifts, and limited mobilization. Where ice roads
the need to access them erable reserves of billion daylight. In the , road are impractical, low-pressure
has accelerated develop-
barrels of oil and trillion construction by bulldozing balloon-tire vehicles haul
cubic feet of natural gas. tundra proved disastrous. loads, leaving practically no
ment of environmentally
Alaska is also home to After only one season, the footprint.
responsible, cost-effective
diverse, unique, and fragile route was impassable when
practices and technologies. ecosystems, inspiring exten- the permafrost thawed. Recent advances in drilling
For instance, the difficulties sive Federal, State, and local Operators turned to gravel to technology are increasing
of winter exploration have regulatory protection. Since insulate the permafrost and North Slope E&P productiv-
been mitigated by innova-
the onset of the North Slope stabilize roadbeds, airstrips, ity and protecting the envi-
oil boom in the late , and drilling pads, but gravel ronment. Through-tubing
tions such as ice roads
operators have been forced to mining and construction are rotary drilling, for example,
and ice pads that have no
develop more cost-effective, expensive and environmentally allows new wells to be drilled
lasting effects on delicate less environmentally intrusive harmful. In the last decade, through the production tub-
tundra. Drilling advances ways to develop these ice-based technology has ing of older wells, saving time
extended reach drilling,
coiled tubing drilling, multi-
lateral completions and
ECONOMIC BENEFITS ENVIRONMENTAL BENEFITS
designer wellsare in-
creasing resource recovery
Enhanced resource recovery and more efficient Reduced surface footprints and disturbance
operations
and reducing drilling costs, Protection of sensitive habitats, wildlife, and
footprints, and waste vol- Lower operating costs cultural resources
umes. Todays exploration
Greater access to resources with fewer wells
and production facilities
drilled, through advanced drilling technology
are radically streamlined,
occupying far less surface Reduced waste volumes requiring disposal,
area than operations did through innovative waste management and
25 years ago.
recycling techniques
SENSITIVE ENVIRONMENTS

CASE STUDIES

and, potentially, up to advanced technology is Success in the Field


million in operating costs coiled tubing, which allows
per well. New directional extended-reach, directional
drilling tools and an drilling, and multilateral Improving waste management
advanced form of horizontal completionsall major North Slope operators are using advanced technology to manage
drilling (designer wells) contributors to increased drilling wastes more effectively. A ARCO pilot project
permit drillers to curve resource recovery, reduced demonstrated that processed drill cuttings could be safely used as
around geological barriers costs, smaller footprints, road construction materials, since the cuttings composition was
to tap small, difficult-to- and less waste. essentially identical to that of native gravel and surface soils.
reach pay zones. Another Based on these findings, in BPXA built a prototype grind-
ing and injection facility that recycled recovered cuttings into
METRICS construction gravel, and ground remaining waste for subsurface
reinjection. By , refined grind-and-inject technology enabled
Advanced technologies have BPXA and other Prudhoe Bay operators to achieve zero dis-
significantly reduced the footprint charge of drilling wastes, eliminating the need for reserve pits.
These innovative strategies yield significant environmental bene-
of North Slope operations fitsdecreased waste volumes, less mining of surface gravel,
If Prudhoe Bay were developed with todays technology, smaller pad sizes, and less surface disturbance.
its footprint would be 64 percent smaller: the drilling
impact area would be 74 percent smaller, roads would Restoring affected areas
cover 58 percent less surface area, and oil and gas The fragile North Slope ecosystem makes site restoration and
separating facilities would take 50 percent less space. habitat enhancement a vital post-production process. In recent
A new 55-acre contractor base supports ARCO Alaskas years, BPXA and ARCO Alaska have created artificial lakes by
Kuparuk field; similar facilities built over 20 years ago flooding abandoned gravel mining sites. This practice, encour-
occupy more than 1,000 acres. aged by the Alaska Department of Fish and Game, creates over-
wintering habitats for fish and predator-free nesting areas for
Surface wellhead spacing has been reduced from 145
waterfowl. BPXA and the U.S. Department of Fish and Wildlife
feet to 35 feet onshore and 10 feet offshore.
collaborated to restore miles of habitat along Endicott Road,
Production pads are dramatically streamlined: the 1971 demonstrating that transplanting Arctic pendant grass effectively
Prudhoe Bay A Pad was built with 35 wells on 44 revegetated disturbed aquatic sites. This technique was also
acres; the 1989 P Pad was built with 21 wells on less
applied at BPXAs BP Pad, where restoration began in .
than 11 acres.
Within three years, native vegetation was restored.
Source: Alaska Department of Natural Resources and BP Exploration (Alaska) Inc.

SOURCES AND ADDITIONAL READING CONTACT

Alaska Department of Natural Brinker, T. Construction of Schumacher, J., et al.


Resources, Division of Oil and Grounded Ice Island for Drilling Minimization and Recycling of
Gas. Evolution of Petroleum in Beaufort Sea, Alaska. SPE Drilling Waste on the Alaskan
Development Technology on 8915, 1980. North Slope. Journal of
Alaskas North SlopeReduced Petroleum Technology, 6/91.
Bureau of Land Management.
Impacts and Enhanced U.S. Department of Energy
NPR-A: A Briefing Book, 11/96. Stanley, M., and B. Hazen.
Environmental Protection. 6/95. Office of Fossil Energy
Insulated Ice Pad Technology
North Slope Fact Sheets. BP 1000 Independence Avenue, SW
Alaskan North Slope Operators Enables Extended Season
Exploration (Alaska) Inc., 1998. Washington, DC 20585
Shift Focus from Stemming Drilling on Alaskas North Slope.
Decline to Hiking Production. North Slope Producers See SPE 35686, 1996. Arthur M. Hartstein
Oil & Gas Journal, 8/24/98. Alaska Renaissance as TAPS (301) 903-2760
Reaches 20. Oil & Gas Journal, arthur.hartstein@hq.doe.gov
Atlantic Richfield Company.
6/16/97.
www.arco.com Trudy A. Transtrum
North Slopes Exploration Revival (202) 586-7253
Bureau of Land Management.
Targeting Satellites Near Giants. trudy.transtrum@hq.doe.gov
BLM Announces New Planning
Oil & Gas Journal, 8/31/98.
Effort for NPR-A. Alaska
Frontiers. January/February
1997.

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