EIA report: North American growth helps boost global oil production to record levels

This animated map shows how world crude oil and lease condensate production, measured in millions of bbl/day, has changed since 1980 in key oil-producing regions. Growth in North American crude oil production and recovery in African and Asian markets contributed to a record global production of 75.6 million barrels bbl/day in 2012, according to an agency brief.  Source: US Energy Information AdministrationBy Katie Mazerov, contributing editor

The Middle East still ranked as the world’s No. 1 crude oil producer in 2012, but growth in North American crude oil production and recovery in African and Asian markets, specifically China, contributed to a record global production of 75.6 million bbl/day, according to a brief released on 17 June by the US Energy Information Administration (EIA). Eclipsing the Middle East, it was the strength of the North American, African and Asian markets that drove an overall 2% increase over 2011 levels in global crude oil production, including lease condensate, the brief stated.

In 2012, the Middle East produced 24.1 million bbl/day of crude oil, a basically flat number over 2011 production. Gains in several Middle Eastern nations were offset by declines in Syria and Qatar. Sanctions also contributed to a 17% decline in Iranian production.

This EIA chart shows how crude oil and condensate production has changed year on year since 2007.

The EIA report synthesized recent figures with historical data on regional production trends between 1980 and 2010, EIA analyst Stacy MacIntyre, who compiled the statistics, explained. The data came from the agency’s International Energy Statistics database, with additional trend information compiled from EIA country analysis briefs or other energy briefs published by the EIA, she said.

The former Soviet Union ranked second in global production, with 12.7 million bbl/day, followed by North America, Africa, Asia and Oceania, Central and South America and Europe. Russia, the world’s second-largest crude oil and lease condensate producer, has seen production gains since 2009 due to development of eastern Siberian oilfields, use of advanced technologies and improved recovery techniques in mature fields in western Siberia, and development of a new export infrastructure, the report stated.

In North America, average annual production rose to 12.2 million bbl/day, a reflection of increasing production in unconventional oil plays in the US and rising bitumen and synthetic crude oil production in the Canadian oil sands. North American production had dropped to 10.4 million bbl/day in 2008.

Trends in other global markets reported by the EIA include:

Africa: Recovery of Libyan production was the main driver behind a 6% increase in African production in 2012, to 9.1 million bbl/day. New production in some non-OPEC countries, such as Ghana, also has boosted oil production in the region since 2010. Ms MacIntyre also cited Niger, a landlocked nation in West Africa, as having gone from zero production in 2010 to 20,000 bbl/day in 2012.Asia and Oceania: A 2% decline in oil production in most of the region in 2011 has not recovered, with production remaining at 7.6 million bbl/day. Offsetting that, China, the region’s largest producer, saw production rise after the Peng Lai field in the Bohai Bay was brought back online. It is China’s largest offshore crude oilfield and had been shut down following a spill in 2011. “China’s production declined 0.5% 2011 and grew 1.7% in 2012,” Ms MacIntyre said. “China accounts for 57% of Asia’s production and 54% of Asia & Oceania combined.” Prior to shut-in, production rates at Penglai 19-3 had peaked at roughly 130,000 bbl/day, according to an EIA Country Analysis Brief for China, revised in April.Central and South America: Market contractions throughout the region, notably Brazil and Argentina, contributed to a 1% decline in 2012, following an increase of 3% in 2011. Production in 2012 was 6.6 million bbl/day.Europe: Continued declining production in the North Sea is the primary reason for a downward trend in Europe. Production declines averaged 9% in both 2011 and 2012, in part due to unplanned outages in the UK and a 12% tax rate increase implemented in 2011 by the British government.

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BP to add $1 billion investment, two rigs to Alaska North Slope

BP is planning to add US $1 billion in new investment and two drilling rigs to its Alaska North Slope fields over the next five years due to changes in the state’s oil tax policy signed into law this month by Alaska Gov. Sean Parnell. These plans call for an increase in drilling and well-work activity, the upgrading of existing facilities and the addition of up to 200 jobs in the state, giving a boost to both the company’s operations and the state’s economy.

In addition, BP has successfully secured support from the other working interest owners at Prudhoe Bay to begin evaluating an additional $3 billion worth of new development projects. These projects, located in the west end of the Greater Prudhoe Bay Area, could continue for approximately 10 years, further increasing the state’s oil production and providing additional jobs.

“With this new tax law, the Alaska legislature and Governor Parnell have taken an important step toward improving Alaska’s long-term economic future,” Janet Weiss, BP Alaska region president, said. “Our announcement today should make abundantly clear that BP is committed to being a part of that future and to continuing to extend the life of North America’s largest oil field.”

BP Exploration (Alaska) will issue a request for proposals this summer for the two additional rigs in Prudhoe Bay. The first drilling rig is expected to be in place by 2015 and the second in 2016. This will increase BP’s rig fleet in Alaska to nine. Meanwhile, BP expects to increase well work as soon Q4 2013, a move that should improve the performance of existing wells at the Prudhoe Bay and Milne Point fields.

The additional development opportunities being evaluated by working interest owners are in the west end of Prudhoe Bay and include expansion and de-bottlenecking of existing Prudhoe Bay facilities, constructing a new drilling pad, and expansions of existing pads, including the drilling of more than 110 new wells. The appraisal phase will take two to three years and will include engineering work and securing regulatory approvals for multiple development projects.

“Now that an improved tax structure is in place, oil and gas projects can once again move forward, keeping Alaska competitive in the midst of America’s recent energy renaissance,” Ms Weiss said.

BP is also working with other companies and the state of Alaska to commercialize Alaska North Slope natural gas as part of a joint concept selection group focused on a South Central Alaska LNG project.

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Statoil discovers oil in Grane field in the North Sea

Posted on 05 June 2013

Statoil, together with partners in the Grane Unit, has made a new oil discovery in the Grane field in the North Sea.

Statoil and its partners are in the process of concluding drilling operations in exploration well 25/11-27 in the Grane Unit. Drilled by Songa Offshore’s Songa Trym semisubmersible, the well proved an oil column of 20 meters in the Heimdal Formation. The estimated volume of the discovery is in the range of 18 to 33 million bbls of recoverable oil.

“We are pleased with having proven new very high value resources in the Grane area,” Tore Løseth, vice president for exploration in the North Sea, said. “The oil discovery is located directly north of the Grane field and can be developed effectively.”

Timely near-field exploration is an important element in Statoil’s exploration strategy for the Norwegian continental shelf (NCS). This implies exploration close to existing installations that in the near future will have spare capacity for new tie-ins. “Near-field exploration is an important contribution in Statoil’s exploration portfolio on the NCS,” Mr Løseth said. “Even though volumes in these discoveries are moderate compared with the big finds over the last few years, these are fast, high-value barrels that are important for extending the production life of existing installations.”

In 2013, about 40% of Statoil’s exploration wells on the NCS will be near-field exploration. In addition to the Grane area, this includes the Oseberg, Fram/Gjøa and Tampen areas.

Exploration well 25/11-27 is situated in the Grane Unit in the North Sea. Statoil is operator with an interest of 36.66%. The partners are Petoro (28.94%), ExxonMobil Exploration & Production Norway (28.22%) and ConocoPhillips Skandinavia (6.17%).

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Baker Oil Tools Sets New Horizontal Gravel Packing Records - Captain Field, UK North Sea

HOUSTON, TEXAS (October 5, 2001) - Baker Oil Tools recently set another horizontal gravel packing record with a 7324 ft (2232m) completion in the Texaco operated Captain field in the UK North Sea. This surpassed the previous horizontal gravel packing record of 4,000 ft, which Baker Oil Tools set in November 1998. The Korean Captain Company Limited is a partner in the field.

In May 2001, the Texaco Captain 13/22a - B2 well was completed at a total depth of 19, 990 ft MD (6093 m) as an open hole gravel pack using 5-1/2-in. x 230 micron with medium weave Baker Oil Tools EXCLUDER™ screens. Prior to the completion, the well consisted of a 11-3/4-in. x 9-5/8-in. tapered casing string set at 7,048ft MD (2148 m) and a drilled 8-1/2-in. hole to a total depth of 14,372 ft MD (4380 m). The horizontal section was begun at a true vertical depth of 2,915 ft (888 m).

Gravel Packing Objectives

The objective of gravel packing is to stabilize the open hole, prevent formation sand movement, and protect screens from plugging and erosion. The resulting completion should provide reliable long-term well productivity and enhanced reservoir drainage. To accomplish these objectives, Texaco and Baker designed and implemented a systems approach that integrates customized drill-in fluids, high-rate displacement and hole cleaning procedures, and Baker Oil Tools' EXCLUDER™ Extended-Longevity Sand Control Screen, CS-300 Open Hole Gravel Packing system, BetaBreaker™ Valves and FLCV™'s (fluid loss control valve).

The completion procedure was designed to control fluid loss in the horizontal section with very high permeability (1?12 Darcy) and a very small operating window between formation pressure and fracture pressure.

Completion Operations

The horizontal hole was drilled with a 9.6 ppg water based calcium carbonate drill-in fluid. Then the entire well was displaced to 9.6 ppg filtered NaCl/KCl brine using a high rate well displacement. The cleanliness of the brine returns from the well were less than 0.01% solids content prior to deploying the gravel pack assembly.

The gravel pack assembly with 4-in. internal washpipe string and Baker CS-300™ Open Hole Gravel Pack Service Tools was successfully deployed in the well. A Baker Model "SC-2R" Packer was set at 6,827 ft MD. The end of the screen assembly was at 13,990 ft MD. The service tools, designed to maintain hydrostatic pressure on the open hole filter cake, were successfully released from the packer and the various circulating positions were confirmed. In addition, four Baker Oil Tools BetaBreaker valves were run in the washpipe to assist in maintaining bottomhole treating pressure below fracture pressure.

Using Baker's GPDesign horizontal gravel pack design software, engineers determined the required pump rate and gravel concentration to pack the well. The well was successfully gravel packed with 174,920 lbs of 16/30 gravel pack sand or 104% of the open hole annular volume calculated from the MWD ADN caliper log. Completion brine was used as the gravel carrier fluid. Approximately 70% returns were maintained while pumping the gravel pack which took 60 hrs. Sand loading was maintained at a very low level (average 0.15 ppga) throughout the job. During pumping, all four BetaBreaker valves operated as designed, allowing the treatment to be pumped at a constant rate of 7 bpm without exceeding fracture pressure. After the gravel pack screened out, the excess gravel was successfully circulated from the workstring, and the service string was then pulled above the Baker Oil Tools FLCV. Prior to closing the valve losses of 60 bph were noted, and losses were reduced to zero when the valve was closed.

Earlier Completions

The first of the 4,000-ft horizontal gravel packs was installed in Captain in November 1998 following extensive technical, operations and logistics planning. Using a brine carrier fluid, 137,000 lbs of gravel was placed in the annulus between the borehole and the EXCLUDER screen. Gravel placement was successful despite the presence of a non-cemented open hole sidetrack in the final 4,000 ft long horizontal interval.

The gravel packed wells in the field have exhibited more consistent well productivities in line with reservoir performance expectations and with no signs of plugging. As the need to gravel pack laterals of increasing length continues, Baker Oil Tools has developed new technology to meet these challenges. Some examples include EXCLUDER screen, the CS-300 Open Hole Gravel Packing System, the BetaBreaker Valve, and the FLCV fluidloss control valve Baker Oil Tools, is a world leader in total completion, workover, and fishing solutions that help exploration and production companies optimize their hydrocarbon recovery investment. Baker Oil Tools solutions are based on advanced downhole and surface technology, practically applied, to help operators produce at the highest levels and the lowest cost throughout the life of the reservoir.

Baker Hughes is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.

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Baker Hughes Centrilift to Provide ESP Systems to All Talisman-operated North Sea Assets

ABERDEEN, Scotland– August 06, 2007 – Baker Hughes Centrilift has secured contracts with Talisman Energy (UK) Limited and Talisman Energy Norge to provide electrical submersible pumping (ESP) systems required by Talisman in the North Sea. The two five-year contracts were awarded to Centrilift following competitive tendering processes.

The new contracts include dual-ESP systems and support services for the Auk, Beatrice and Claymore fields in the UK sector and cover power supplies and seven dual-ESP systems – including three subsea deployments – for Talisman Norge’s Yme Field.

“Centrilift was the first company to deploy dual-ESP systems subsea and we have already installed dual systems for Talisman in its Beatrice and Claymore fields,” said William Milne, Centrilift North Sea and Africa Manager. “Our experience and success with projects such as Total Otter and Santos Mutineer / Exeter, combined with the strong working relationship we have with Talisman in the Beatrice and Claymore fields, played a significant part in us winning these contracts.

“We are very pleased that we have managed to secure Talisman’s forthcoming North Sea ESP work,” says Milne. “This is very important for our business and it builds on an exceptionally successful period in terms of Centrilift North Sea contract gains over the past two years. We have been working with Talisman in the UK sector since the operator arrived in the North Sea, but this is the first work we have secured with Talisman Norge.”

“ESP provision isn’t simply a case of supplying pumps and ancillary equipment to operators. It is also about providing expertise and experience. In our business, system run life, reliability and performance are the critical factors that can influence production and, therefore, the return on Talisman’s investment. We are pleased Talisman has put its trust in Centrilift to deliver these requirements by combining innovative and reliable technologies with the experience and understanding of our engineers, who along with Talisman and key technology partners, will design, build and operate the ESP systems,” related Milne.

Baker Hughes is a leading provider of drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry. ###

CONTACT:
Centrilift
Kathy Shirley

Senior Marketing Communications Specialist
Baker Hughes Centrilift
(918) 342-7788
Kathy.Shirley@centrilift.com

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