Economic limit of field production in Louisiana

When the operating cost of a well is equal to its income from production, the well is no longer considered an asset and is said to have reached its economic limit. The purpose of this paper is to quantify the economic limit of hydrocarbon field production in Louisiana. We classify 690 fields that terminated production between 1977 and 2007 by product type, location, and year of termination and compute production and adjusted gross revenue near the end of their life cycle. During the last year of production, average oil field revenues varied from $35,000 in North Louisiana to $101,000 in South Louisiana to $227,000 in state waters; gas field revenue thresholds ranged from $57,000 (North Louisiana) to $402,000 (South Louisiana) to $936,000 (offshore). Economic limit statistics are summarized and correlations with price and field size are reviewed. The limitations of the analysis and constraints on interpretation are discussed.     

Economic limit of Outer Continental Shelf Gulf of Mexico structure production

The economic limit of an oil and gas asset occurs when income from production is less than the direct cost of operation. Economic limits determine the threshold for profitable operations and are often considered from a conceptual perspective rather than as an object for empirical assessment. The purpose of this paper is to derive empirical estimates of the economic limit of offshore structures in the Outer Continental Shelf Gulf of Mexico. We classify 1962 decommissioned structures between 1986–2009 by structure type, primary production, water depth and year of removal, and compute end-of-life production, adjusted gross revenue, and water cut thresholds according to various levels of categorization. During the last year of production, historic gross revenues averaged $539,000 for oil structures, $955,000 for gas structures, and $1.1 million for dry gas structures. Daily end-of-life production ranged from 50 BOEPD for oil structures to 647 MCFEPD for gas structures and 788 MCFEPD for dry gas structures. The economic limits for oil and gas structures increased to $1 million and $1.7 million over the period 2005–2009.     

Giant oil field decline rates and their influence on world oil production

The most important contributors to the world's total oil production are the giant oil fields. Using a comprehensive database of giant oil field production, the average decline rates of the world's giant oil fields are estimated. Separating subclasses was necessary, since there are large differences between land and offshore fields, as well as between non-OPEC and OPEC fields. The evolution of decline rates over past decades includes the impact of new technologies and production techniques and clearly shows that the average decline rate for individual giant fields is increasing with time. These factors have significant implications for the future, since the most important world oil production base – giant fields – will decline more rapidly in the future, according to our findings. Our conclusion is that the world faces an increasing oil supply challenge, as the decline in existing production is not only high now but will be increasing in the future.     

西非深水油田开发经济界限可采储量和产量评价研究

西非深水地区特殊的地理环境和复杂的合同财税条款,决定了勘探开发的高风险、高投入和高难度,其经济界限既不同于国内,也不同于浅海和陆上。到目前为止,未曾见到针对该地区油气田勘探开发经济界限方面的公开研究成果。根据长期从事海外油气田评价的实际经验和相关理论,对该地区油田开发经济界限可采储量和产量评价进行了探索研究。通过对经济评价指标进行筛选和确定,结合贴现现金流法,对经济因素影响最大的油价、开发投资等敏感性参数进行分析,得出一系列图版。同时,对尼日利亚地区目标油田的不同年产规模和不同井数条件下的经济界限产量和可采储量进行评价。研究结果表明,无论在不同年产规模还是不同井数情况下,经济界限可采储量和产量与油价均呈反比关系,与投资变化均呈线性增长关系。同时,在考虑财税政策下,要回收开发投资、操作费用和弃置费用等,西非深水油田经济界限产量、经济界限可采储量至少要在800×104m3/a和5000×104m3以上,若采出程度为40%,油田经济界限动用地质储量、经济单井动用储量要在1.3×108m3和350×104m3以上。     

海上油气田不压井作业工艺的可行性试验研究

不压井作业是指在井筒内有压力存在的情况下,不放喷、不压井,通过油管堵塞器与不压井作业设备的配合使用,克服井筒上顶力,进行强行起下或者下压作业的一种方法,不压井作业具备油气层保护和环境保护方面的条件和优势。为减少海上油气田井下作业对油气层的伤害及环境污染风险,最大限度地提高产能和采收率,保护环境,研究适合我国海洋油田工作环境和生产特点的不压井作业技术及其应用。基于现有不压井作业技术,结合海洋油气田的作业环境、井下生产管柱结构及常用的不压井装置,通过模拟海上气井实际工况,在陆地进行不压井作业施工试验。实验结果表明,通过对不压井作业技术的升级和对不压井设备的更新改造,可以应用于海上油气田作业。鉴于该技术和设备的结构特点,应用前需要对作业所在平台的大小、油气井井口结构和承载能力进行调研,以确保海上作业的安全、质量和时效。在海洋油气田的完井、修井作业中,推荐使用不压井作业技术。     

The impact of Hurricanes Gustav and Ike on offshore oil and gas production in the Gulf of Mexico

During August and September 2008, Hurricanes Gustav and Ike passed through the Gulf of Mexico and damaged and destroyed a number of offshore oil and gas structures. In the final official government assessment, a total of 60 platforms were destroyed and 31 structures were identified as having extensive damage. The destroyed platforms were responsible for about 1.6% of the oil and 2.5% of the gas produced daily in the Gulf of Mexico and represented approximately 234 million BOE of reserves valued between $4.6 and $10.9 billion. Although the number of structures destroyed by Hurricanes Gustav and Ike was half the total destruction from the 2004–2005 hurricane seasons, we estimate that the reserves at risk are approximately three times more valuable. Each destroyed structure is unique in its production capacity and damages incurred and are a candidate for redevelopment. We review pre-hurricane production and revenue characteristics for the collection of destroyed structures and estimate production at risk. Gas structures are expected to present better economics and redevelopment potential than oil structures, and we predict that 198 million BOE, or nearly 95% of reserves-in-place, are likely to be redeveloped. Shut-in production statistics are compared against recent hurricane events and general comments on the factors involved in decision making are presented.     

海上多元热流体热采工艺应用方法研究与实践

热力采油是稠油开发中最主要的开采方式,中国海上稠油储量大,稠油油田的合理高效开发,对海上油田的增产稳产具有重要意义。受海上特殊的自然环境、空间等条件限制,直到2008年,我国才在渤海湾南堡油区完成了海上第一口热采井的先导性试验项目,填补了国内海上稠油热采领域的空白,为多元热流体热采技术的发展和现场应用积累了经验。从多元热流体吞吐热采机理、多元热流体设备改造及作业流程设计、制氮设备在多元热流体吞吐热采中的应用、注入热流体管线的设计和预制、热采井口及井筒结构设计、多元热流体吞吐注采方案、多元热流体吞吐热采施工程序、多元热流体吞吐热采经济评价等方面,介绍了我国第一口海上多元热流体吞吐作业的工艺设计方法和实施方案。实施海上多元热流体吞吐热采工艺,对改善海上稠油开发效果、促进海上稠油高效开发具有指导作用。     

A note on US royalty relief,rent sharing and offshore oil production

This paper offers an economic analysis explaining why royalty relief under US Federal legislation is expensive in terms of revenue foregone, but is largely ineffective in increasing US offshore oil production. Repeal of royalty relief is therefore justified.     

Review of offshore energy in Malaysia and floating Spar platform for sustainable exploration

Rapidly rising trends of fuel consumption indicate enormous energy crisis of global proportions in near future. Following the trend, Malaysia's fuel consumption has been increasing by an annual rate of 7.2% since 1990 and has even reached 44.9 Mtoe in 2008. It is forecasted to reach 207.3 Mtoe by the year 2030. Due to serious depletion of reserves in various onshore locations, the exploration process is expanded to offshore deeper waters. Seven sedimentary basins belonging to Malaysia, in South China Sea, show great promise to be excellent sources of hydrocarbons. For deep-sea exploration fixed offshore structures are not feasible. An economical alternative is Spar platforms, which are floating structures ideal for exploration of deep water deposits. In this research, Malaysian experience in offshore hydrocarbon exploration is investigated. Various kinds of operational Spar platforms are censoriously explored and their recent technical developments are reviewed. The study reveals that Malaysia's primary energy requirements were met (in year 2008) with natural gas by 43.4% of the total, crude oil by 38.2%, coal by 15.3% and hydropower by 3.1%; indicating evidently that natural gas and crude oil are still the predominant energy sources. Out of the total energy, around 70% oil and 85% natural gas come from offshore fields. These large figures highlight the necessity to consider economically viable alternatives. Spar platform is an innovative marine structure designed to conduct such deep sea explorations. First commissioned Spar at Kikeh field of Malaysia is testimony to immense potential and possibilities of incorporating Spar platforms in the country's deep reserves for sustainable energy generation. Classic Spar, Truss Spar, Cell Spar and Cell–truss Spar are identified to be well suited for these environments. Since the offshore fields are located at waters with more than 1000 m depth, Spar platforms can be successfully installed at these Malaysian deep water fields.     

发展海工设备制造,走向世界海洋石油市场

近年来,深海油气勘探开发发展迅速,在2000~2005年全球新增油气储量中,陆上、浅水和深水分别占28%、31%和41%。与此相应,该领域的投资也持续快速增长,据预测,2012年全球海域作业支出将达到3610亿美元,比2007年增长42.1%,其中深水增幅约74%。在影响海上油气发展的诸多因素中,有两个问题最为业内人士所关注。一是海上油气发展需要大量的设备,而所涉及的种类众多的设备和技术必须形成智能化的配套体系;二是要有能胜任海上石油运作实力强大的团队,它不仅拥有投资和抗风险的实力,也要具有一流的技术和管理人才团队。近两年我国海工设备制造已进入深水领域,中国各大造船厂与各大石油公司的海工基地一起,组成了我国正蓬勃兴起的海洋石油装备制造队伍。但同时在这个领域也存在着专业化程度和关键设备国产化程度偏低,深水、超深水配套能力不足等问题。我国应将海上石油设备研制作为走向制造强国的"抓手"之一,统一规划,形成协同发展的合力。在拥有了适用于深水的设备并形成初步配套后,就可大踏步走向世界海洋石油市场,在实践中进一步提高设备制造的水平和配套的完整性。此外,我国在南海应更加积极主动地进行勘探开发活动,以深水勘探打破南海油气停滞、被动的局面。     

高含硫气田经济开发的单井日产量下限和单井控制地质储量下限

高含硫气田的开发安全条件要求高,技术难度大,开发成本高。储量和产量是决定高含硫气田开发经济效益的重要影响因素。单井日产量下限、单井控制地质储量下限是衡量高含硫气田达到经济高效开发的定量指标。建立了单井日产量下限、单井控制地质储量下限的数学模型。以某气井为例,计算并分析了天然气价格、气井投资、开采成本、产量变化模式等对单井日产量下限、单井控制地质储量下限的影响:①天然气价格与单井日产量下限、单井控制地质储量下限呈指数负相关函数关系;②气井投资、开采成本与单井日产量下限、单井控制地质储量下限呈直线正相关函数关系;③产量变化模式对单井日产量下限、单井控制地质储量下限影响最小。建议根据计算出的单井日产量下限、单井控制地质储量下限等参数来编制高含硫气田开发方案,以实现方案的总体经济效益达到最优。     

A system dynamic model for production and consumption policy in Iran oil and gas sector

A system dynamic model is presented, which considers the feedback between supply and demand and oil revenue of the existing system in Iran considering different sectors of the economy. Also the export of the oil surplus and the injection of the gas surplus into the oil reservoirs are seen in the model by establishing a balance between supply and demand. In this model the counter-effects and existing system feedbacks between supply and demand and oil revenue can be seen considering different sectors of the economy. As a result, the effects of oil and gas policies in different scenarios for different sectors of Iran’s economy together with the counter-effects of energy consumption and oil revenue are examined. Three scenarios, which show the worst, base and ideal cases, are considered to find future trends of major variables such as seasonal gas consumption in power plants, seasonal injected gas in oil reservoirs, economic growth in the industrial sector, oil consumption in the transportation sector, industrial gas consumption and exported gas. For example, it is shown that the exported gas will reach between 500 and 620 million cubic-meter per day in different scenarios and export revenues can reach up to $500 billion by 2025.     

浮式生产储油装置结构改造原则及关键技术

浮式生产储油装置(FPSO)是集采油、油气处理、储油与卸油、发电、控制、生活功能为一体的海上油气处理装置.截至2008年2月,全球现役的FPSO有139艘,改造数量为85艘,占61.15％,主要分布在巴西、中国、英国、尼日尼亚、安哥拉等国家.有18艘FPSO在中国渤海和南海服役,产量占中国海上石油产量的70％,其中改造的旧FPSO数目超过60％.由于新建FPSO周期较长,造价较高,在海况不太恶劣的海域,租用旧FPSO并进行改造,使其满足新油田生产开发的工艺要求是更为普遍和经济的做法.根据多艘FPSO结构设计改造的实践经验,总结出FPSO改造应满足油田开发方案的要求、适应油田长期开发的海洋环境,严格遵守国际或国内相关规范的要求.重点分析了FPS0结构改造中的几个关键技术问题,如重视现状调查和评估、船体水动力响应分析、转塔系统、防腐措施等.     

The impact of oil prices on bioenergy,emissions and land use

We evaluate how alternative future oil prices will influence the penetration of biofuels, energy production, greenhouse gas (GHG) emissions, land use and other outcomes. Our analysis employs a global economy wide model and simulates alternative oil prices out to 2050 with and without a price on GHG emissions. In one case considered, based on estimates of available resources, technological progress and energy demand, the reference oil price rises to $124 by 2050. Other cases separately consider constant reference oil prices of $50, $75 and $100, which are targeted by adjusting the quantity of oil resources. In our simulations, higher oil prices lead to more biofuel production, more land being used for bioenergy crops, and fewer GHG emissions. Reducing oil resources to simulate higher oil prices has a strong income effect, so decreased food demand under higher oil prices results in an increase in land allocated to natural forests. We also find that introducing a carbon price reduces the differences in oil use and GHG emissions across oil price cases.     

Technoeconomic analysis of camelina oil extraction as feedstock for biojet fuel in the Canadian Prairies

This study presents a technoeconomic analysis of commercial extraction of camelina oil as an aviation fuel feedstock. An engineering economic model was designed in Superpro Designer^® to quantify capital investment, scale, production cost, and profitability for a 120,000–1,500,000 tonnes annum⁻¹ solvent extraction plant. The corresponding estimated capital investment was $24.7 - $155 million. Feedstock cost ($0.29–0.40 kg⁻¹), seed yield (1400–2100 kg ha⁻¹), oil content (38–47%), scale, and camelina meal revenue are key factors in the break-even selling price (BESP) and competitiveness of camelina oil as a feedstock. Feedstock represented 81–90% of operating cost. The BESP ranges from $0.43 -$1.22 L^-1. Larger plants have lower BESP compared to smaller plants which require higher breakeven prices. This suggests better economies of scale associated with higher plant scale. Camelina can be introduced into underutilized summerfallow land of semiarid Canadian Prairies of Saskatchewan. Swift Current is an ideal extraction plant location. These results can guide R&D and investment decisions for advancing camelina as an industrial feedstock within the innovation value chain.     

Offshore renewable energy exploitation strategies in remote areas by power-to-gas and power-to-liquid conversion

Chemical storage of electric energy is recognised as a potential solution to improve the penetration of renewable energy. The coupling of renewable power production with offshore oil & gas exploitation by converting electricity into synthetic fuels represents an opportunity to valorize renewables in remote areas in an energy transition panorama. The present study aims at a comparison of alternative power-to-gas and power-to-liquid strategies for the conversion of offshore wind power into different chemical energy vectors (hydrogen, synthetic natural gas and methanol), taking advantage of conventional offshore oil & gas infrastructures for energy conversion and synthetic fuel transportation. A set of technical, economic, environmental and profitability performance indicators was defined to allow the comparison. A case study in the North Sea was analysed. The results showed that electrolyzers capacity and offshore-onshore distance play an important role on economic indicators. Sensitivity analysis was carried out to test the robustness of the results.     

Hydrocarbon production forecast for committed assets in the shallow water Outer Continental Shelf of the Gulf of Mexico

In 2007, the federal waters of the Gulf of Mexico averaged daily production of 1.3 million barrels of oil and 7.6 billion cubic feet of natural gas. The majority of oil is produced from deepwater fields in water depth greater than 1000 ft, while most gas production is extracted from the shelf. The Outer Continental Shelf is a mature province with over 3800 fixed structures and 6500 producing wells connected into an integrated pipeline network more than 30,000 miles in length. The purpose of this paper is to develop a methodology to forecast oil and gas production in the shallow water Gulf of Mexico. Structures are categorized according to age and production characteristics, and forecast procedures for each asset class are described and illustrated. The methodology is implemented using the inventory of committed assets circa December 2006. The expected amount of hydrocarbon production arising from the inventory of committed assets under stable reservoir and investment conditions is estimated to be 1056 MMbbl oil and 13.3 Tcf gas valued between $85 and 150 billion. The results of generalized regression models are presented with a discussion of the limitations of analysis.