Edition Two - May 2012
The big 6 challenges for an oil and gas translator The Permian Basin Oil Play: 'Unleashed'
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Adam Marmaras Manager, Technical Director
Issue 2 – May 2012 OilVoice Acorn House 381 Midsummer Blvd Milton Keynes MK9 3HP Tel: +44 208 123 2237 Email: press@oilvoice.com Skype: oilvoicetalk Editor James Allen Email: james@oilvoice.com Advertising/Sponsorship Adam Marmaras Email: adam@oilvoice.com Tel: +44 208 123 2237 Social Network Facebook: https://www.facebook.com/oilvoice
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Welcome to the second edition of the OilVoice Magazine. We were very pleased with the download numbers of the first edition and thought it a project worth continuing. Thanks for all your feedback on the first issue as well. We've removed the traditional column format of a magazine, and gone for full page text. It works a lot better on iPads and other devices. Please keep the feedback coming, we always read it. This month we have some new great contributors - Keith Schaefer from Oil & Gas Investments Bulletin, Raj Ladwa from Contract Jobs and Chris Wilson from Evaluate Energy. Be sure to take a look at what they've read, and visit their sites. If you'd like to reach the oil and gas community and have something to say, then get in touch. Thanks for reading!
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Contents May’s Featured Authors
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Watching World Energy: Flying on a solar impulse
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Watching World Energy: The turn of a friendly card
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Biographies of this months featured authors. By Eric Watkins By Eric Watkins
Featured University: University of Aberdeen
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How exporting LNG could bring serious wealth to the U.S.
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Watching World Energy: Bottling up Canada's oil exports
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Obama pushes Iran sanction to breaking point
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Exploration: Explorers be good...
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Iran halts oil sales to EU
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The big 6 challenges for an oil and gas translator
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Exploration: Explorers be good or be lucky... By David Bamford
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Greenhouse Gas Emissions: In Situ oil sands producers drive efficiencies, but integrated operations take a step back
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This month we are featuring University of Aberdeen By Keith Schaefer By Eric Watkins
By Hanife Mehmet By David Bamford By Raj Ladwa
By Camilo MuĂąoz
By Chris Wilson
OilEdge: Know your customers By David Bamford
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Review: Argentina - Under the spotlight
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Recently added companies
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The Permian Basin Oil Play: 'Unleashed'
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EnQuest to expand North Sea oil projects
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By David Bamford
An overview of the recent companies added to the OilVoice database By Keith Schaefer
An overview of the recent companies added to the OilVoice database.
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Featured Authors OilVoice is always on the lookout for quality, original content. We receive submissions from people in the industry on a regular basis, who in turn benefit from our large user base. You get a chance to broadcast to the industry and spread the word, and we get fantastic original content. Get in touch for more details!
Hanife Mehmet Contract Jobs Hanife Mehmet is a copywriter working for contractjobs.com, the contract only job board and news resource for freelance professionals. The site provides information for professional temporary workers from all leading industry sectors including the oil and gas sector.
Keith Schaefer Oil & Gas Investments Bulletin Keith Schaefer, editor and publisher of the Oil & Gas Investments Bulletin.
David Bamford OilEdge David Bamford is non-executive director of Tullow Oil, and a past head of exploration, West Africa and geophysics with BP.
Eric Watkins Oil Diplomacy Oil Diplomacy produces news, analyses, commentary and tailored research concerning the global oil and gas industry. Watching World Energy, which appears daily, comments on current events in the energy industry
Raj Ladwa Contract Jobs Raj Ladwa, a Journalism graduate, is currently a copywriter for Contract Jobs, providing Oil & Gas contractors with the latest industry news.
Camilo Mu単oz Translation Source Translation Source helps companies communicate worldwide by offering comprehensive multilingual solutions based upon client needs. Our solutions are developed in more than 140 languages and include a full range of language translation and localization services, international training and e-learning development, interpretation, instruction, bilingual staffing and other supporting linguistic services.
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Chris Wilson Evaluate Energy Chris joined Evaluate Energy in December 2007, gaining significant experience in Canadian company financial and operating data, specialising in unconventional energy.
Make the most of OilVoice Jobs The OilVoice Jobs board is fast becoming the place candidates look for their next move in the industry. Featuring adverts from top draw recruiters, CV upload capability, and an easy application process. New jobs are appearing every day, so be sure to bookmark it. Company Directory 3330 company profiles, 5208 offices and 10765 people - all searchable by keyword and location. You can even export your results as an excel file. So the next time you are searching for a company or person, be sure to give it a try. Advertise OilVoice traffic numbers continue to climb and climb. If you'd like to reach a global audience of oil and gas professionals then it's easy to run an advert with us. We have solutions for every budget, so get in touch with us to discuss how we can help promote your business now. Events Let's face it, there are a lot of events in the oil and gas industry. It can be hard to keep track. The OilVoice Events Board contains hundreds of upcoming events, complete with descriptions and calendar bookmark functionality. Training Courses You can never stop learning about the oil and gas industry. How do you find the course that's right for you? By visiting our Training Courses section. Free Membership Over the past ten years we've grown to 29653 members (let's call it 30,000). If you're not a member then you should start now, it only takes a second. Then you'll be free to post job adverts, events and press releases.
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Watching World Energy: Flying on a solar impulse Written by Eric Watkins from Oil Diplomacy Tuesday, April 03, 2012 A team of two pilots plans to fly a solar-powered aircraft from Switzerland to Morocco in a couple of weeks, calling it a rehearsal in the run-up to the plane's round-the-world flight in 2014. 'Flying as far as this, powered only by solar energy will be excellent training for the roundthe-world trip,' said Andre Borschberg, co-founder and chief executive of Solar Impulse, the company behind the plan and the plane. The Solar Impulse HB-SIA is the first aircraft that can fly day and night without fuel or polluting emissions, demonstrating the potential of new technologies in terms of energy reduction and the production of renewable energy. The carbon fiber aircraft, which has the 63.4-meter wingspan of an Airbus A-340 and the weight of an average family car at 1,600 kg, is the result of what its backers say are 'seven intense years of work, calculations, simulations and tests.' The pending flight will also enable the mission team do some necessary prepping in procedures of coordinating with airports, integrating their plane into air traffic and providing the logistics for servicing the aircraft. MORE THAN A FLIGHT The venture, though, is more than just a flight and it's even more than just a dress rehearsal for the longer mission in 2014. The coming air journey to Morocco will also serve to showcase that country's new solar industry. 'The Kingdom of Morocco will welcome Solar Impulse in the spring of this year,' said an announcement issued by the Moroccan Agency for Solar Energy, also known as MASEN. In case you haven't heard of it, MASEN is in charge of the implementation of the integrated Moroccan Solar Plan, which aims at developing a minimum power capacity of 2,000 MW by 2020. By 2020, Morocco intends to build five solar complexes, not only generating the 2000 MW, press@oilvoice.com | +44 208 123 2237
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but also eventually preventing the emission 3.7 million tons of CO2. All of that could be a real boost to the economy of Morocco, which currently imports 97% of its energy needs. The solar-thermal power plant in the region of Ouarzazate, which will have a capacity of 160 MW, is part of the solar complex, housing a range of solar installations which, by 2015, will generate a total of 500 MW. DESTINATION 'FITS THE PLAN' Borschberg and fellow pilot Bertrand Piccard say their destination in Morocco fits their flight plans as well as the environmental aspirations expressed in their solar-powered flight. 'This destination corresponds fully with the goals we had set ourselves, in terms of distance and flight duration,' said Borschberg, adding that the pair did not have 'a moment's hesitation in accepting the idea of working with Morocco.' Picard said the two fliers are full of admiration for the vision of Morocco's King Mohammed VI and the 'intelligent energy policy' adopted by his country. 'We are delighted to support it,' Piccard said. 'Theirs is a pioneering project, which clearly demonstrates that the clean technologies we are promoting with Solar Impulse also have a role to play in everyday life.' Piccard and Borschberg are not the only ones supporting King Mohammed and his solar plan. Even the World Bank is behind it, approving $297 million in loans to Morocco to help finance the solar project at Ouarzazate. World Bank Group President Robert B. Zoellick said that Ouarzazate demonstrates Morocco's commitment to low-carbon growth and could demonstrate the enormous potential of solar power in the Middle East and North Africa. A MULTIPLE WINNER 'This solar project could advance the potential of the technology, create many new jobs across the region, assist the European Union to meet its low-carbon energy targets, and deepen economic and energy integration in the Mediterranean,' said Zoellick, calling the project 'a multiple winner.' The 500 MW Ouarzazate solar complex will be among the largest Concentrated Solar Power plants in the world, and international observers say it is 'an important step' in Morocco's national plan to deploy 2000 MW of solar power generation capacity by 2020. The United Nations agrees, and sees Morocco's project as a good role model for other countries to follow.
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'The inauguration of its initial phase costing $200 million by the World Bank, and $97 million from the Clean Technology Fund has placed Morocco in good stead to a realize an energy future which could show the way for other countries struggling to honor their commitment to climate change,' the UN said. So, the Solar Impulse will be doing a little more than just making an historical flight when it lands at Ouarzazate in a few weeks' time. It also will be showcasing the potential of a whole new industry for Morocco, North Africa and the wider world.
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Watching World Energy: The turn of a friendly card Written by Eric Watkins from Oil Diplomacy Wednesday, April 04, 2012 So far, India has not been following the US lead when it comes to weaning itself off Iran's oil. But that could soon change given the card played by the US in the sanctions game this week. That card came in the form of a $10 million reward offer by the US for 'information leading to the arrest or conviction' of Hafiz Mohammad Saeed, leader of the Pakistan-based Lashkare-Tayyiba terrorist organization. 'Saeed participated in the planning of the 4-day-long terrorist assault on Mumbai in November 2008 that left 166 individuals dead, including six US citizens,' said the US Department of State. 'Saeed and his organization continue to spread ideology advocating terrorism, as well as virulent rhetoric condemning the United States, India, Israel, and other perceived enemies,' it said.
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INDIA PLEASED New Delhi could not have been more pleased, and it said so. 'India welcomes this new initiative of the government of the United States,' said External Affairs Minister S.M. Krishna, adding that, 'In recent years, India and the United States have moved much closer than ever before in our common endeavor of fighting terrorists.' That view was underlined a few weeks ago when US Pacific Commander Admiral Robert Willard told a Congressional hearing that India was one of several countries where US special forces assist teams were operating. 'We have currently special forces assist teams - Pacific assist teams is the term - laid down in Nepal, Bangladesh, Sri Lanka, Maldives, as well as India,' Adm Willard told the Congressional hearing. Adm Willard said Lashkar-e-Tayyiba is a 'very dangerous organization ‌ so it is a very important threat, and we're working very closely with the nations in the region to help contain it.' AFFILIATED WITH AL-QAEDA He said Lashkar-e-Tayyiba 'is headquartered in Pakistan, affiliated with al-Qaeda‌ and contributes to terrorist operations in Afghanistan and aspires to operate against Asia, Europe and North America.' That sounds like Iran, too, especially after the recent rant by on senior official. 'In the face of any attack, we will have a crushing response. In that case, we will not only act in the boundaries of the Middle East and the Persian Gulf, no place in America will be safe from our attacks,' said Massoud Jazayeri, a senior Republican Guards Commander. 'America, the Zionists and reactionary Arabs should pay attention that we will seriously confront them wherever the Islamic Republic's interests are threatened,' Jazayeri said. What guarantee does anyone have that Lashkar would not do the bidding of Teheran? That alone may have prompted Washington's decision to put a price on Saeed's head - a decision that could not have sounded any sweeter to India, Pakistan's arch enemy. However, it also should be noted that the State Department announcement of a bounty on Saeed's head coincided with a visit to India by US Undersecretary of State for Political Affairs, Wendy Sherman, a visit that emphasized oil sanctions. In a televised broadcast, Sherman said that India knows that relying on crude oil from Iran is risky and that it may seek to diversify its energy sources for the sake of its energy security. Sherman said that countries face numerous risks in importing crude oil from Iran, including a press@oilvoice.com | +44 208 123 2237
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lack of insurance cover for ships as well as the inability of banking channels to transmit money in the face of US sanctions. These sound like curtain raisers to a change in India's recent policy on sanctions against Iran. IRAN'S POTENTIAL FEARED Sherman met with Indian Foreign Secretary Ranjan Mathai on a range of issues, including the agenda for the forthcoming meeting between Foreign Minister S.M. Krishna and Secretary of State Hillary Clinton. Indian news media cited sources as saying India's government expressed concerns over the US sanctions, particularly the possibility that Iran has the potential to undermine the energy security of India, which daily imports 340,000 barrels of oil from Iran. Up until now, India has been saying it would adhere to UN sanctions against Iran but not unilateral sanctions imposed by any country. However, that position could soon be changing - especially given the bounty on Saeed. In Saeed, Obama had a useful card up his sleeve, and played it well with India. It was the turn of a very friendly card indeed, showing New Delhi that Washington understands its concerns. NO REASON TO BUY IRAN'S OIL Still, much depends on the coming visit of Hilary Clinton, as well as on further US efforts to assure India of the availability of alternative sources of oil in the event that it decides to forego supplies from Iran. On that score, Obama has been more than clear in recent days, telling world leaders that there is sufficient oil available and that there is no reason for anyone to keep buying Iran's. Some say it remains to be seen whether that message has been heard and understood in New Delhi. Others say it is in the cards.
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Featured University – University of Aberdeen The University of Aberdeen is today at the forefront of teaching, learning and discovery, as it has been for 500 years. As the 'global university of the north', we have consistently sent pioneers and ideas outward to every part of the world. We are an ambitious, research-driven university with a global outlook, committed to excellence in everything we do.
Contact Geology & Petroleum Geology School of Geosciences University of Aberdeen Meston Building Aberdeen AB24 3UE Tel: +44 (0)1224 273433 Fax: +44 (0)1224 272785 geology@abdn.ac.uk
Located at the heart of Europe’s energy capital, we are a leading centre of geological training and research. Working in partnership with industry we build on their data and methods to understand fundamental processes in the Earth System with specific reference to the World’s sedimentary basins. Our portfolio of training ranges from undergraduate level BSc honours degrees, through the full range of graduate programmes to professional training for industry.
Suncor are proud to be an OilVoice Sponsor for University of Aberdeen In 1967, we pioneered commercial development of Canada's oil sands — one of the largest petroleum resource basins in the world. Since then, Suncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Across our operations, we intend to achieve production of one million barrels of oil equivalent per day by 2020. Want to Sponsor a University? OilVoice has created an opportunity for companies to help students gain a valuable insight into the industry from a worldwide perspective by sponsoring unrestricted OilVoice access to a university of their choice. Read more
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Health, Safety, Environment and Risk Management RPS Energy is a global multi-disciplinary consultancy, providing integrated technical, commercial and project management support services in the fields of geoscience, engineering and HS&E.
Contact James Blanchard T +44 (0) 20 7280 3200 E BlanchardJ@rpsgroup.com
rpsgroup.com/energy
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How exporting LNG could bring serious wealth to the U.S. Written by Keith Schaefer from Oil & Gas Investments Bulletin Thursday, April 05, 2012 Where will the wealth created by the fast growing Liquid Natural Gas (LNG) market be concentrated in the coming years? In a word-Australia. It's the #4 exporter of LNG in the world already, and seven new plants are in various stages of planning and development, which would require $200 billion in capital investment-and lots of jobs. By comparison, America, which produces massive amounts of natural gas, sends a shockingly small amount of the resource abroad. Both are close to markets - Australia is closer to Asia, which imports vast quantities of LNG, but the U.S. is also relatively close to these markets and closer to Europe, which holds some major LNG consumers, like Spain and France. Both also have robust natural gas production. And yet Australia is light years ahead of America in sending LNG overseas. How far? about 800 billion cubic feet (bcf) per year. Now before we explore that gap further, here's a short-version background on LNG‌ LNG is created by cooling natural gas to minus 256 degrees Fahrenheit, which transforms the gas into a liquid. This liquid has about 1/600th the volume of natural gas, making its transport over long distances much simpler -and much more economic. While turning a gas into a liquid may seem to be the stuff of science fiction, it has its roots in the 19th century when Carl Von Linde, an engineer in Munich, built the first practical compressor refrigeration machine. The first LNG plant was built roughly a century ago in West Virginia. Is This 'New' Bakken Play Ready To Boom? It's not the Bakken most investors have come to know. But I expect that all to change, especially now that one small company operating here has just hit TWICE on a HUGE new play-validating thousands of acres.
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That's why company insiders have been loading up on shares‌ AND why brokerage firms have price targets 50% to 100% higher than today's share price. As an OGIB reader, you can get the full update on this high-potential growth play - here in my new findings. Go here for free access. Of course, large-scale users of natural gas prefer to deal with the regular kind-not liquid and frozen. Since gas is easier to move and doesn't need to be refrigerated, companies had to then develop ways to reverse the process. So you have to liquefy the gas to move it, and then 're-gasify' the natural gas to use it. That's a lot of work and means large infrastructure investments are required. The gas is converted to liquid at liquefaction plants (LNG export terminals.) It is then transported in special ships that use auto-refrigeration. These LNG ocean tankers actually use a small amount of the LNG - 3%-4% during an average voyage-to power the ships. These tankers can carry around 135,000 cubic meters of liquid natural gas, which works out to about 3 billion cubic feet of warm natural gas. To give you an idea of how much gas that is, 23 ships a day could feed ALL the US demand for natural gas. There are now roughly 375 ships in service worldwide. The ships then go to an LNG import, or regasification, terminal where the LNG is converted back to a gaseous state and then either stored in tanks or sent through pipelines. The Asian market is a major destination for LNG exporters. Japan is by far the world's largest importer of LNG, bringing in nearly 71 million tons (8.52 bcf/d)-or almost 31 percent of all global LNG imports, according to Unit Economics. South Korea is #2 at 34.5 million tons (4.14 bcf/d), or roughly 15 percent of global imports. Taiwan (11.3 million tons/1.36 bcf/d) and China (9.7 million tons/1.16 bcf/d) also account for a significant portion of LNG imports. Asia isn't the only major LNG import market, though. Europe brings in large amounts as well. Spain is the third largest importer of LNG with 27.3 million tons (3.28 bcf/d) coming in during 2010. The United Kingdom and France are also major importers, bringing in 13.4 million tons (1.60 bcf/d) and 10.2 million tons (1.22 bcf/d) in 2010, respectively. According to the U.S. Energy Information Administration (EIA), the U.K. received 55 percent of its LNG exports from Qatar in 2009. That same year significant quantities of the hydrocarbon entered the U.K. from Trindad and Tobago (a surprisingly robust LNG exporter with 15.4 million tons (1.85 bcf/d) sent abroad in 2010), Algeria, Egypt and Australia. Now that we've covered the basics of LNG, we can dive into the LNG industry in Australia to see what the U.S. might learn from the Land Down Under. Australia only trails Qatar, Indonesia and Malaysia in LNG exports. In 2010, Australia sent 872 billion cubic feet (about 19 million tons) abroad, which was a substantial improvement over the 714 BCF exported in 2009, says the EIA. press@oilvoice.com | +44 208 123 2237
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That's just over 8% of the world's LNG exports. By comparison, Qatar does 25% of all LNG exports. Unit Economics states that Australia could contend with the Middle Eastern country for top spot as early as 2016. Not surprisingly, most of Australia's LNG exports go to the Top 4 importing countries-all in the Far East. Japan gets about 70% of Australia's LNG exports, China gets 21%, South Korea 5% and Taiwan 4%. There are only two LNG liquefaction plants in Australia right now, but seven additional export facilities are under construction, and four more are planned. Unit Economics reports that if all of these facilities come on line and produce their projected capacities, Australia will send a staggering 95.7 million tons (11.5 bcf/d) of natural gas abroad per year, versus the 19 million tons (2.28 bcf/d) it is exporting now-a five-fold increase! The capital investments-and the jobs created by it-are enormous. The Australian major Santos Ltd., along with Petroliam Nasional Bhd., are planning on shelling out $45 billion to create three LNG export facilities that would be able to convert 20.8 million tons of coal seam gas into LNG each year, reports the Wall Street Journal. Other prominent players in Australian LNG are the BG Group PLC and the Australia Pacific LNG consortium, which is led by ConocoPhillips and Origin Energy Ltd. 'LNG is simply in high demand. and it's not just the consequence of Fukushima,' Jon Skule Storheill, chief executive officer of Awilco LNG, told Reuters, referencing the nuclear disaster in Japan that has prompted the country to rely more heavily on LNG. 'There's Korea, there's Taiwan, this market is just strong. Gas is clean, it's available and it's cheap.' America, on the other hand, has only two export terminals. The terminal in Kenai, Alaska, which was built in the 1960s, was idled in November of last year. (At the time, ConocoPhillips' spokeswoman Natalie Lowman told The Associated Press the plant will be in preservation mode until spring 2012, at which time the company will re-examine the facility.) The other is Cheniere Energy's Sabine Pass LNG Terminal, near the border of Texas and Louisiana. This station has 4 billion cubic feet per day of capacity. Overall, the US exported 0.2 bcf/d of LNG in 2011, according to the EIA-a total of 71.5 bcf. Australia almost does that in just one month. The U.S. sends most of its LNG exports to Brazil, China, Japan and South Korea. So How Does the US Get In On the Global LNG Action? The LNG market is growing, and its future looks bright. Some industry analysts predict demand for LNG globally will increase 40% in the five-year period from 2010 to 2015. This would make the annual market for LNG roughly 300 million tons. press@oilvoice.com | +44 208 123 2237
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The U.S. has the fifth-highest amount of natural gas reserves in the world, with the EIA putting the number at 273 trillion cubic feet. By comparison Australia has the 12th-highest natural gas reserves, with 'only' 110 trillion cubic feet. But, as stated above, Australia was able to ship more than 12 times as much LNG overseas in 2010 than the U.S. The largest obstacle the U.S. faces in the LNG market is its lack of export/liquefaction terminals. With the Kenai facility going idle, the Sabine Pass terminal is the only facility in America even close to being able to regularly send LNG overseas. And even that could still be a few years away. Now what about building LNG liquefaction plants? Unit Economics says it can cost $3 billion for each million tons of annual capacity for the entire liquefaction supply chain, which includes production, pipelines, the port and the facility itself. The Wall Street Journal reports there are seven additional projects seeking approval from the Department of Energy to ship LNG to most foreign nations. If all of these projects gain approval they could handle about 25 percent of U.S. gas production. However, the news source reports that approval for all of the facilities is unlikely. An additional hurdle to the LNG market in the U.S. is political opposition to sending the energy source overseas. The American Chemistry Council has warned the U.S. government that it 'should not undermine the availability of domestic natural gas,' but is not necessarily against exporting the substance. The Sierra Club is concerned that exporting more natural gas will cause companies to increase their fracking operations. While there has been little to no evidence that fracking itself harms the environment, a groundswell of opposition to the practice has emerged, making investing in greater production difficult for the industry. Still, for all the hurdles in exporting LNG, the U.S. also many opportunities. In mid-March Japanese officials planned to meet with a delegation headed by Deputy Energy Secretary Daniel Poneman to reportedly request LNG exports to Japan. This appears to be a major step, as Japan had previously shied away from American LNG due to uncertainty over whether Washington would allow it to be exported. As mentioned, Japan's thirst for LNG is insatiable, and it will only grow stronger as the country scales back on its use of nuclear power following last year's Fukushima Daiichi nuclear disaster. (Before the disaster, nuclear power accounted for about 30 percent of Japan's energy production. That's a large hole Japan will need to fill.) Other markets that could be exploited by the U.S. are the U.K., France and Spain, all three of which are among the largest importers of LNG in the world. While Australia does send some LNG to these European countries, most of the U.S. competition will come from African countries like Nigeria and Algeria, as well as Qatar. Another positive sign for U.S. LNG exports is that they appear to have the support of Energy press@oilvoice.com | +44 208 123 2237
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Secretary Steven Chu, who has stated that sending the hydrocarbon overseas would allow America to cut into its trade deficit. 'Exporting natural gas means wealth comes into the United States,' he said, reports The Wall Street Journal. There is much work to be done in the U.S. LNG industry to help it catch Australia-but the economics are powerful if it can. The gears appear to be moving in the right direction, as both international markets are opening up, domestic production increases and LNG liquefaction facilities gain approval and come on line.
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Watching World Energy: Bottling up Canada's oil exports Written by Eric Watkins from Oil Diplomacy Thursday, April 05, 2012 Canada's government, frustrated by the US decision to delay construction of Transcanada's proposed Keystone XL pipeline, has been stepping up efforts to find alternative routes and markets for its oil. But even these redoubled efforts are facing domestic opposition. One proposal is Enbridge's Northern Gateway Project, which involves a twin pipeline system running between Edmonton, Alberta, and a marine terminal at Kitimat in British Columbia. One of the lines would export 525,000 b/d of Alberta oil sands crude to Asia-Pacific, while the other would import 193,000 b/d of condensate. Another proposal comes from Kinder Morgan, which is considering plans to double the capacity of its Trans Mountain pipeline which currently delivers 300,000 b/d of crude oil and products 1,500 kilometers from Edmonton to the Burnaby terminal on Canada's Pacific coast. press@oilvoice.com | +44 208 123 2237
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BOOST TO EXPORT POTENTIAL These two pipelines would boost Canada's export potential, and ease concerns in AsiaPacific over scarce supplies. Shipping additional supplies across the Pacific would also create supply chain diversity and reduce tensions along the main energy supply route through the Indian Ocean to markets in South and East Asia. The Northern Gateway project has met with considerable opposition from the public, especially since Canada's government said it would retroactively shorten the regulatory review to 24 months from 42 months in an effort to start exports as soon as possible. However, Grand Chief Stewart Phillip, president of the Union of British Columbia Indian Chiefs, said that Ottawa's shortening the review process was an 'incredibly stupid' move which serves only 'to expedite the battle in the courts and on the land itself.' VOLATILE MOOD Phillip said the mood between the Canadian and British Columbia governments and the First Nations was 'volatile' and he asserted that 'our communities will do everything they can to stop this project.' The First Nations made good on their word on April 1 when they surrounded a vehicle carrying officials for a public hearing on the project, and lined the road from the airport to the village of Bella Bella, 240 km south of the pipeline's planned tanker terminal at Kitimat. The vehicle was carrying the three members of the National Energy Board and Canadian Environmental Assessment Agency who later canceled the April 2 hearing, the first of four planned for the remote region. SURVEY SHOWS PUBLIC SPLIT Meanwhile, according to a survey conducted by the Mustel Group, opinions concerning increased tanker traffic transiting Vancouver Harbor were split down the middle: 44% supported traffic of up to 300 additional oil tankers, 44% were opposed, and 12% were undecided, 'Without having much information, people are split about 50-50,' said MP Kennedy Stewart. 'It will be a real battle for Kinder Morgan and opponents like First Nations to win over public opinion,' he said. 'We want to see a line on a map,' said Stewart, who serves as natural resources critic for the NDP, which is waiting to see Kinder Morgan's application before it decides to support the project or not. 'If the expansion goes ahead, land would have to be expropriated. The route crosses 15 First Nations,' Stewart said. 'The company's right-of-way would have to be expanded to the width of a four-lane highway,' he said. press@oilvoice.com | +44 208 123 2237
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Canada's government clearly has a considerable amount of pipeline diplomacy ahead if it is to get the public on board with the nation's energy policy. Meanwhile, much to the chagrin of Ottawa, Canada's oil exports will simply languish.
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Obama pushes Iran sanction to breaking point Written by Hanife Mehmet from Contract Jobs Thursday, April 05, 2012 Last week, US president Barack Obama tightened the reign even further on Iran oil exports, which may threaten to increase fuel prices even further as well as intensifying tensions already in place. The sanctions, which were passed by congress in December of last year, will enable the US to take further action against countries which do not comply with the reduction of oil import intake from Iran. Obama's decision was reportedly based on the fact that there are enough non-Iranian oil exporters to see the world through supply and demand, despite the current shortage and staggering fuel prices. Not only is Obama being met with criticism over the coming reelection, but has been blamed for heightening the chance of a nuclear weapons capability in Iran, a fact that Tehran has adamantly denied however. Despite this, Obama stated: "Nonetheless, there currently appears to be sufficient supply of non-Iranian oil to permit foreign countries to significantly reduce their import of Iranian oil." In spite of the negativity surrounding the report, the US government have pointed out that many past Iranian export buyers have significantly reduced its spend with the country and were seeking supplies from elsewhere. Oil and gas contract jobs in other locations around press@oilvoice.com | +44 208 123 2237
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the world may strive without competition from Iran or crumble under the pressure to meet expectations in the current tough oil and gas market.
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Exploration: Explorers be good... Written by David Bamford from OilEdge Tuesday, April 10, 2012 In the field of observation, chance favors only the prepared mind. Louis Pasteur, lecture 1854 French biologist & bacteriologist (1822 - 1895) Yes, ma'am, the more I practice, the luckier I get! Gary Player, golfer, in response to a lady who said 'that was a lucky shot!' A couple of stories... The first comes from nearly 25 years ago when I was working in Houston and had the opportunity to read a review of the then century-long exploration history of every play in every basin in USA. What I noticed then was that in each example, there were no more than two or three real 'Winners' who claimed a large, disproportionate, share of the discovered volumes and a very large number of 'Losers' who (literally and metaphorically?!) 'made up the numbers' and drilled a large, disproportionate, share of the dry holes. I have noticed this in more recent campaigns; consider how for example ExxonMobil, Total and BP - the early entrants - have dominated deep water Angola. The second is really an example of hubris, in which I played a part. Following BP's merger with Amoco at the end of 1998, when our exploration portfolio more or less doubled and - as oil prices began to rise - we were able to drill some wells which had been postponed for a couple of years, we enjoyed two years of unprecedented exploration success, drilling major discoveries in the Gulf of Mexico, the Northern Caspian, enjoying continued success in press@oilvoice.com | +44 208 123 2237
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Angola, with an overall success rate of something like 2 out of 3. To us this all seemed to follow from really getting a grip on the exploration process - applying technology (regional 3D seismic etc), building and ranking a prospect inventory, drilling only the 'best' - and as 'Winners' we were willing to share our wisdom with anybody who would listen (anybody who was in the audience at the 2001 Bath meeting of the Petroleum Group of the Geological Society might remember this!). Of course what happened next was that the wheels fell off and in the next two years our overall exploration success rate plummeted and we drilled dry holes where none were imagined - in Angola, West of the Shetlands, the Gulf of Mexico... In trying to figure out what separates exploration 'Winners' from 'Losers', I have been somewhat bemused by these experiences and so have been collecting stories about exploration successes, especially those from relatively early in the history of our business. I'm not going to recount them here as to do so would step across the lines of confidentiality owed to both companies and more especially to individuals - and some of them are truly anecdotal. However, what these stories all seem to imply is that our predecessors were smart...but not perhaps as smart as they thought! Indeed, the layperson might well conclude that serendipity, good old 'luck', played a much larger role in exploration than some old explorers would ever want to admit. The first step in being 'good' is to answer the question... Where shall we explore? This is a cartoon representation of the Exploration 'Life Cycle' of exploration plays (and, occasionally, whole basins). It illustrates the essential discussion.
The status of any play can be considered in terms of its position in this Cycle. To illustrate, the movement of the UKCS North Sea Brent (oil) province can be positioned over its 45+ press@oilvoice.com | +44 208 123 2237
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year history: Frontier - in the 1960's: Prolific - in the early 1970's: Mature - in the late 1970's and in the 1980's: 'Red' - today Explorers are often accused of being only concerned with Volumes but of course this Cycle has profound implications for Value. In the early, Frontier, phase, of course there is only expenditure with as yet no production of even significant discoveries. In the Prolific phase, value creation is at a maximum, as discoveries are large (typically, 'Giant' accumulations of >250mm boe gross), and therefore F&D costs are spread over a large number of barrels. In the Mature phase, value creation can still be good but technology application and cost reduction become important in order to enhance economics. In the 'Red' phase, value destruction is probable, occasionally inevitable, as success rates plunge, the very few discoveries are small, and costs escalate. Of course, it remains possible for a company to 'win' during this phase but the number of 'winners' is small, the number of 'losers' very high! The following sketch illustrates the evolution of discovered resources, value, costs and a notion of 'reward', through these cycles of exploration from Frontier to 'Red'. It is important to emphasise that the right level of analysis is the play level. It would be absurd to pretend that a whole region lies in the 'Red' zone for example. This illustrates but the first step in Exploration where many different types of data need to be integrated before we can offer knowledge about a petroleum system or a play, and then a series of prospects, or a prospect we wish to drill, and talk sensibly about volumes, uncertainties and risks.
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Iran halts oil sales to EU Written by Raj Ladwa from Contract Jobs Friday, April 13, 2012 The EU could be facing an oil shortage as Iran retaliates to sanctions placed on them by the US and EU. As the fallout continues from Iranian nuclear activity, Tehran has continued to implement its own sanctions in the face of EU and US sanctions banning the import of Iranian Oil. Iran has already hit Britain and France with a pre-emptive strike, an attempt to stop them importing Iranian oil before they can find alternative suppliers. This week has seen a few more names being added to the list as Iran continues its retaliation. Iranian President, Mahmoud Ahmadinejad has placed embargoes on Greece, Spain and Germany according to an Iranian television network with Italy also set to be placed on the list. However, there are also suggestions Mr Ahmadinejad is considering cutting oil supplies to over a hundred European countries. The latest reports may spur European countries to act faster in reducing their reliance on Iranian oil as many countries risk being cut off from the US financial system. A report by the International Energy Agency (IEA) has predicted oil production in Iran could fall by up to a million barrels per day by July as nations restrict Iranian imports and find alternative supplies to avoid the risk of being hit US sanctions. However, as the oil flow from one of the world's largest oil producers stems, this could see oil prices rocket as Europe looks for alternative suppliers. Talks between Iran and the UN Security Council are set to reconvene in Istanbul regarding Iran's nuclear activity. Any positive results could lead to sanctions against Iran being eased.
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The big 6 challenges for an oil and gas translator Written by Camilo Mu単oz from Translation Source Monday, April 23, 2012 As a multi-billion dollar industry, the oil and gas sector operates on a global scale. It's a big business. The implications for an oil and gas translator to make the wrong decision when it comes to localizing the content are usually magnified. When there are so many technical translators out there, how do you make sure your oil and gas translation is up to scratch? We have compiled the 5 main challenges of oil and gas translation: 1. Timeline Requirements The energy industry as a whole is extremely time-sensitive. It's never acceptable to miss a deadline for an oil and gas translator. Having an idle rig for one day alone, for instance, can cost an oil company $650,000 and that doesn't include the millions lost by not producing oil. Three minutes late could mean $3 million lost. 2. Industry Specific Vocabulary How many of these expressions do you know? a) PSA [1] b) Gone to Water c) Gunk squeeze d) Sour Corrosion e) Gas Cut mud f) Sidetrack g) Pipe ram preventer These are just a few examples of technical terms that an oil and gas translator may encounter and that may need to communicate succinctly and effectively in another language. Most linguists, even if professionally trained, won't know the definitions of these words unless they have industry-specific knowledge. Extensive knowledge of highly technical and specific terms is vital in order to provide accurate high-quality translations. 3. 'Translating' regulations
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Each nation has specific codes and standards that must be adhered to. Russia, for example, has the world's strictest regulations on offshore oil production and has introduced new regulations on how foreign assistance missions are to approach Russian authorities when sending in expertise and equipment. Oil and gas translators are responsible for being aware of these and ensuring the translations they produce comply with them. Failing to budget for good translations that comply with the requirements of target countries can lead to them being rejected (and having to be retranslated). Why not get it right first time? 4. Keeping up with industry social and environmental requirements Like many industries, the oil and gas sector is under increasing pressure to improve their social and environmental impact. The Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) are used to assess the sustainability of their approach. The requirements for these open to public review and are imposed on a national level by treaties, national laws, oil and gas industry guidelines, and are imposed as conditions of lending and assistance by international financial organizations (e.g. the World Bank). It is a lengthy procedure that demands a good knowledge of legal and financial terminology. As a result of this constant transnational flow of documents translators should also be familiar with the procedures and documents involved that will be referred to in the process. They should be able to update and amend documents efficiently so they can be approved. 5. DTP requirements Due to the highly technical nature of many oil and gas translations, specialized desktop publishing tools such as AutoCAD may be required in order to incorporate technical diagrams. Oil and gas translators must know how to manipulate annotations using these tools. It is easy to leave things out without review. 6. Project Specific Multilingual Communication To date there have been US$ 53.43 billion invested in the pre-salt, with an overall $400 billion expected over the next ten years, including foreign investment from Petrobras partners British Gas and from investment from Chile. There are currently 688 sources of foreign investment in the pre salt project, a figure which not only demonstrates the demand for multi-lingual translations but also shows how, when centered on one project, a streamlined approach is vital to insure that even though they are written in different languages they are 'talking the same language' using the same terminology. Do you consider the impact of your translation choices when you are choosing a translation provider? [1] a) Pressure Setting Assembly - A tool used to set permanent tools on wireline using explosive force b) Describes a well in which water production is increasing press@oilvoice.com | +44 208 123 2237
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c) A bentonite and diesel oil mixture that is pumped down the drill pipe and into the annulus to mix with drilling mud. d) Embrittlement and subsequent wearing away of metal caused by contact of the metal with hydrogen sulfide. e) A drilling mud that contains entrained formation gas, giving the mud a characteristically fluffy texture. f) To use a whipstock, turbodrill, or other mud motor to drill around broken drill pipe or casing that has become lodged permanently in the hole. g) A blowout preventer that uses pipe rams as the closing elements.
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Exploration: Explorers be good or be lucky... Written by David Bamford from OilEdge Monday, April 23, 2012 In the field of observation, chance favors only the prepared mind. Louis Pasteur, lecture 1854 French biologist & bacteriologist (1822 - 1895) Yes, ma'am, the more I practice, the luckier I get! Gary Player, golfer, in response to a lady who said 'that was a lucky shot!' A couple of stories‌.. The first comes from nearly twentyfive years ago when I was working in Houston and had the opportunity to read a review of the then century-long exploration history of every play in every basin in USA. What I noticed then was that in each example, there were no more than two or three real 'Winners' who claimed a large, disproportionate, share of the discovered press@oilvoice.com | +44 208 123 2237
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volumes and a very large number of 'Losers' who (literally and metaphorically?!) 'made up the numbers' and drilled a large, disproportionate, share of the dry holes. I have noticed this in more recent campaigns; consider how for example ExxonMobil, Total and BP - the early entrants - have dominated deep water Angola. The second is really an example of hubris, in which I played a part. Following BP's merger with Amoco at the end of 1998, when our exploration portfolio more or less doubled and - as oil prices began to rise - we were able to drill some wells which had been postponed for a couple of years, we enjoyed two years of unprecedented exploration success, drilling major discoveries in the Gulf of Mexico, the Northern Caspian, enjoying continued success in Angola, with an overall success rate of something like 2 out of 3. To us this all seemed to follow from really getting a grip on the exploration process - applying technology (regional 3D seismic etc), building and ranking a prospect inventory, drilling only the 'best' - and as 'Winners' we were willing to share our wisdom with anybody who would listen (anybody who was in the audience at the 2001 Bath meeting of the Petroleum Group of the Geological Society might remember this!). Of course what happened next was that the wheels fell off and in the next two years our overall exploration success rate plummeted and we drilled dry holes where none were imagined - in Angola, West of the Shetlands, the Gulf of Mexico……… In trying to figure out what separates exploration 'Winners' from 'Losers', I have been somewhat bemused by these experiences and so have been collecting stories about exploration successes, especially those from relatively early in the history of our business. I'm not going to recount them here as to do so would step across the lines of confidentiality owed to both companies and more especially to individuals - and some of them are truly anecdotal. However, what these stories all seem to imply is that our predecessors were smart….but not perhaps as smart as they thought! Indeed, the layperson might well conclude that serendipity, good old 'luck', played a much larger role in exploration than some old explorers would ever want to admit. The first step in being 'good' is to answer the question... Where shall we explore? This is a cartoon representation of the Exploration 'Life Cycle' of exploration plays (and, occasionally, whole basins). It illustrates the essential discussion.
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Exploration 'Life Cycle': Play Status The status of any play can be considered in terms of its position in this Cycle. To illustrate, the movement of the UKCS North Sea Brent (oil) province can be positioned over its 45+ year history: Frontier - in the 1960's: Prolific - in the early 1970's: Mature - in the late 1970's and in the 1980's: 'Red' - today Explorers are often accused of being only concerned with Volumes but of course this Cycle has profound implications for Value. In the early, Frontier, phase, of course there is only expenditure with as yet no production of even significant discoveries. In the Prolific phase, value creation is at a maximum, as discoveries are large (typically, 'Giant' accumulations of >250mm boe gross), and therefore F&D costs are spread over a large number of barrels. In the Mature phase, value creation can still be good but technology application and cost reduction become important in order to enhance economics. In the 'Red' phase, value destruction is probable, occasionally inevitable, as success rates plunge, the very few discoveries are small, and costs escalate. Of course, it remains possible for a company to 'win' during this phase but the number of 'winners' is small, the
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number of 'losers' very high! The following sketch illustrates the evolution of discovered resources, value, costs and a notion of 'reward', through these cycles of exploration from Frontier to 'Red'.
Exploration 'Life Cycle': Value Generation It is important to emphasise that the right level of analysis is the play level. It would be absurd to pretend that a whole region lies in the 'Red' zone for example. This illustrates but the first step in Exploration where many different types of data need to be integrated before we can offer knowledge about a petroleum system or a play, and then a series of prospects, or a prospect we wish to drill, and talk sensibly about volumes, uncertainties and risks. This requires real 'Know How'... 'Know How' Such 'Know How' is acquired by having explored for, developed and produced hydrocarbons around the globe and thus is the preserve of IOCs. It is not generally available from contractors who may well own some technologies but not 'Know How' as defined above. Those NOCs who have attempted to internationalise via exploration - Petrobras, Statoil, CNPC, Petronas, ONGC etc - failed largely because they did not know how: no number of government-to-government deals can wish away this rather fundamental problem. press@oilvoice.com | +44 208 123 2237
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Another way of saying all this is that Exploration is knowledge-based, that is, dependent on people. The 'Winners' in exploration will guard their 'Know How' carefully, cosseting the staff who embody this knowledge. They will pursue long lists of potentially hydrocarbon bearing basins and plays (and, similarly, prospects) in the manner described above. They will be 'good explorers'. The 'Losers' will depend on 'luck', or believe they can. I'm sure there are many ways to lose‌.but here are just three: 1. For a Major, with plenty of staff and 'Know How', nonetheless rely on an 'Exploration Supremo' who selects two or three opportunities and says 'one of these will wok! 2. Be a small company, with no/few staff and little 'Know How', and rely on one play, or a small number of prospects, 'working'. 3. Be an investor in several small companies (all with executive packages, corporate jets etc to pay for) in the belief that a 'portfolio effect' will somehow get "luck" on your side!
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Greenhouse Gas Emissions: In Situ oil sands producers drive efficiencies, but integrated operations take a step back Written by Chris Wilson from Evaluate Energy Tuesday, April 24, 2012 While overall greenhouse gas (GHG) emissions from oil sands operations are still rising, some producers are improving their environmental performance, according to the latest available government data analysed by CanOils. Total GHGs from oil sands projects increased 9.3% to 62.8 million tonnes of carbon dioxide equivalent (CO2e) in 2010, this compared with an estimated 13% rise in production CanOils estimates. However, efficiency gains by in situ producers were offset by rising GHG per unit emissions from integrated producers. Emissions from integrated projects (those that both extract and upgrade bitumen) increased to an average 119 kg of CO2e per barrel of synthetic crude production in 2010, up from 113 kg per barrel in 2009. In contrast, emissions from in situ projects were down for a second consecutive year, emitting 79 kg for every bitumen barrel of production compared with more than 89 kg in 2007. The combined total average emissions in 2010 were 110 kg CO2e emissions per barrel.
Total oil sands production increased to over 1.4 million barrels a day in 2010, an increase of press@oilvoice.com | +44 208 123 2237
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13% on 2009 production for both integrated and in situ operations. In situ production accounted for 41% of the total, while integrated production made up the remaining 59%. Despite the increased efficiencies from in situ operations in 2010, the impact of larger producing integrated projects and the escalation in production have meant that total emissions in the oil sands have continued to grow. Integrated projects released 45 million tonnes of oil sands CO2e emissions in 2010, while in situ operations produced 18 million tonnes. These figures were up 9% and 10% respectively on 2009 total emissions.
For operators, cutting emissions at the project level is not just about reducing the environmental impact of their projects, it also means a more efficient project and lower operating costs. For in situ projects this is due to the large amount of emissions created by burning natural gas to steam raw bitumen out deep within the oil sands deposits. The efficiency measure for this process is called the steam-to-oil ratio (SOR); as a general rule a low SOR equates to lower emissions per barrel and lower operating costs. In 2010 the Christina Lake project, operated by Cenovus Energy Inc. had the lowest CO2e per barrel of the in situ projects with an average 48.3 kg CO2e emissions per barrel of bitumen produced. Foster Creek which is also operated by Cenovus, was the second most efficient project producing only 53.3 kg CO2e per barrel. The top ten most efficient projects utilised Steam Assisted Gravity Drainage (SAGD) technology as opposed to Cyclic Steam Stimulation (CSS), utilised extensively in Imperial Oil's Cold Lake operations. The graph below, taken from the CanOils Oil Sands Service, shows how larger projects have better unit efficiencies.
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23 oil sands extraction and 7 upgrading or integrated projects reported their 2010 GHG emissions, making up 30 of the largest 163 Albertan and 537 total Canadian facilities required to report data. Alberta accounted for 47% of total Canadian emissions and oil sands operations approximately 6.9% of the total; second to Alberta, Ontario contributed 21%. Overall Canada's 2010 emissions remained stable, increasing by only 0.25% to 692 megatons, while the economy grew 3.2% in this time.
Notes Details of this analysis are available exclusively to CanOils subscribers (www.canoils.com). 2004 to 2010 total and kg/barrel GHG emissions, including carbon dioxide, methane, nitrous oxide and their respective equivalent carbon dioxide (CO2e) on an individual project level are available within the CanOils Oil Sands product. Greenhouse gases are those gases in an atmosphere that absorb and emit radiation within press@oilvoice.com | +44 208 123 2237
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the thermal infrared range. The main greenhouse gases in the Earth's atmosphere are water vapour, carbon dioxide, methane, nitrous oxide and ozone. CanOils tracks carbon dioxide, methane, nitrous oxide and their respective equivalent carbon dioxide (CO2e) release per barrel and by total for every oil sands project. In the CanOils database, methane, nitrous oxide and ozone emissions are converted to CO2 equivalent based on the US Environmental Protection Agency Global Warming Potential (GWP) factors under which CO2 has a GWP of 1, methane a GWP of 21 and Nitrous oxide a GWP of 310. Syncrude is raw produced bitumen that has been upgraded to synthetic crude oil. Air pollutant emissions data were compiled in collaboration with provincial, territorial and regional environmental agencies by Environment Canada, National Pollutant Release Inventory (NPRI). Facilities report their own pollutant release and transfer data to Environment Canada. Only facilities emitting the equivalent of 50,000 tonnes are reported and therefore pilot projects are not included. Total oil sands emissions data refers to total project coverage in the CanOils database. There are two main ways of extracting oil sands - mining, in which the bitumen is located within 80-100 meters of the surface and in situ whereby the bitumen is located in deeper reservoirs and is produced using steam injection or other enhanced recovery methods.
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OilEdge: Know your customers Written by David Bamford from OilEdge Wednesday, April 25, 2012 Perhaps for an oil field service company knowing who your suppliers and customers are - where you sit in the supply chain - is relatively easy. For example, a seismic contractor supply a proprietary 3D seismic survey over an oil field sits between the manufacturer of cables, airguns, recording equipment and the seismic operations specialists of the client oil company. press@oilvoice.com | +44 208 123 2237
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The same specialists sit in the supply chain between the seismic contractor and the geoscientists in the field's reservoir management team. Less obviously, the reservoir management's team has the asset manager as a customer and, ultimately, the oil company that owns the asset has the host government as a customer. Often as managers with responsibility for people, we only consider ourselves responsible for the people in our team. The truth is, to make the organisation work effectively we need to consider relationships more widely. Regularly we focus on the areas for which we are responsible, forgetting the 'bigger picture' and how our 'bit' fits in with other parts in order to make a complete whole. I will refer to 'context' throughout this article. For me the context is the end goal which is the delivery of something to a consumer or customer. It is concerning that many people do not look at the ultimate relationship; that with an end consumer or user, a customer. It is also concerning that not many people in an organisation look upon others within the organisation as potential customers. The latter, where identified are referred to as 'Internal Customers'. Internal customer is not a new concept but is one which does not seem to have taken on a great significance. There is often a difference between the way we treat colleagues and customers, so the attitude of thinking of internal customer can improve the relationship or the 'service' we provide to those internal customers. External Customers In some circumstances it is easy to identify external customers and some functions in the organisation have a direct relationship or interface with them. Others are more remote and therefore perhaps more inclined to be inward focussed. One concept I was introduced to was 'if you are not serving the customer, serve someone who is'. I have interpreted this and include it in my big picture awareness. I believe this is important both in operational, practical terms and in the way in which we engage our team. It is true that some may not be truly interested, but having a context will often provide us as managers with a great tool to use either as a managerial or controlling mechanism. With exploration for example it is easy to see that as an end in itself, but in the context of the various customers (road users, aircraft, shipping, plastics manufacturers, energy suppliers, oilfield service comapnies, even host governments, for example) we can see that it has a real purpose, use and value and needs to be controlled (especially cost) effectively as ultimately we are all 'users' or consumers. In production, again, it is again an end in itself but again the context of the customers and their use of the oil or gas produced will again be useful as a real purpose.
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For some the end user or customer may be too remote and, although it could be a useful context, something more immediate is needed. Internal Customer Many organisations have adopted an approach where they have the notion of customer within the organisation rather than merely colleagues. This is far from universal but where it really and truly exists the relationships within the organisation are different from where it is the view that internal folk are colleagues alone. We may be respectful of colleagues but somehow the notion of a customer prompts greater accuracy, timeliness or quality in our outputs. Outputs are perhaps the result of a process, 'what we do'. Possibly a customer approach is one that makes us think more in terms of outcomes‌.not just the result of a process but the effect it has too. This becomes more important in the larger picture as well as the immediate customer relationship when we consider how our outputs and outcomes will be used by others. What this implies is that as a manager of a team we need to be right on top of the 'how' our outcomes will be utilised by our customer. The first thing we need to be aware of is who is our customer? Identifying the customer has to be an initial activity so that we have an idea of where our outcomes will go. Next we need to understand how the customer will use these outcomes in their part of the journey towards the ultimate customer. This further implies that we as managers need to have the bigger picture in mind as we think of the ultimate or end user. We can share as much or as little of this with the team as is appropriate. The ultimate goal is not a secret and in my view should be shared anyway; some team members may respond to this more than others which is the nature of human beings and where the art of management comes in‌.how well do we know the individuals in our team and what motivates and excites or even interests them? The relationships This may be the part that needs work as we build and manage relationships with our internal customers. This is where openness and open questions are of fundamental importance. It may also be a time for us to have a thick skin and a degree of realism or practicality in our response to the answers we receive. Again, knowing the personality we are dealing with and their angle or perspective on life. Some people may have greater and unfair expectations of our outcomes than we can or maybe should provide. This is where a dose of reality is important and gradually the internal customer becomes educated in how we will respond and what we can fairly provide. Nonetheless it is valuable to ask of our internal customer what they expect and what they feel or think about the outcomes we provide them with at present.
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Generally organisations are structured in such a way that we have separate departments and functions which collectively produce the ultimate outcome for the end user. This has to be the ultimate purpose of any organisation. What then usually happens is that organisations set up processes which deliver that ultimate outcome. Often organisations expect individual functions to operate their processes effectively and efficiently and to 'own' or control them. I have seen examples where the bigger picture is lost altogether and individual departments have wonderfully efficient processes but they do not fit in with the 'up stream' or 'down stream' processes of other functions. In discussing or asking what other functions require of us it is important to keep the overall context in mind. We need to have that picture in our own mind and there is no harm in asking a fellow customer centric colleague (internal customer) how their process works towards the ultimate customer goal. We may consider this as holding both our and their feet to the flame and keeping everything in context. The approach Where the concept of internal customer is truly embedded the approach is expected and is a normal conversation. It may be that internal customer surveys are conducted that prompt the conversations or it may be that the conversations happen anyway. Where this is not the norm, it is still possible to make the approach but at first it may need to be more tentative. Again the value of knowing the person you are dealing with will help. You don't need to be bosom buddies but understanding what makes them 'tick' and likely responses will be advantageous. When one suggests tentative approaches this does not mean being on the back foot. It is quite possible to be assertive in style whilst seeking the information in a tentative or exploratory way. Possibly exploratory is a better word to use. 'X, what I'd like to explore with you is the value and quality of our outputs and outcomes that you then use as part of your inputs.' We may end up with some ideas along the lines of 'this is what we need less of, please keep doing this and we need more of that'. Some you can respond to, some may be unrealistic and some may be unfair expectations. However, having sought the feedback you do need to do something with it and to 'report' back to the internal customer on what you are doing and the changes you may be making. I have seen that treating a colleague as a customer improves focus on outcomes rather than focus on my own process and the nature of the conversation being outcome led also improves the quality and the relationship. Suppliers (both internal and external) If we adopt a customer centric view there is benefit in creating good relationships with suppliers too. Being proactive may be advantageous. However we probably want to avoid press@oilvoice.com | +44 208 123 2237
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being a whinging moaner: 'This is not right, that's wrong' and so on. Starting from a position of positives helps and allows us to then point to the things that may be improved. It is, as with customers, to form good, open, trusting relationships. If we are seen as a moaner then we are unlikely to get any response, but if we have reasonable expectations we can often realise a great improvement in the service we are provided by both internal and external suppliers. This may seem common sense but sadly it does not appear to be that common. Too often I have witnessed a dissatisfied customer ranting and raving at the supplier or conversely meekly accepting poor quality outcomes or service. Neither of these is a satisfactory state and the importance of establishing a decent relationship is again emphasised. It may be that as individuals we need help in relating and possibly in being assertive (as opposed to being aggressive). The important elements are to have an idea of the bigger picture and know what you contribute as a team. Then looking at customers and suppliers and ensuring that your outcomes and outputs are appropriate in the context. Relationships are so important in making this work and it probably resides with us a managers although there is no harm in fostering positive relationships between teams. My concern here would be that as manager I would need to own the 'official' relationship with other teams, or all sorts of promises and expectations may be created! Emotional intelligence I will cover this in more detail in a later article but for now let's say that awareness of others and how you can manage yourself to relate to that person and their behaviours will stand you in good stead. The basis of emotional intelligence is precisely that awareness and then responding appropriately. Summary and activity It is worth considering: who are your suppliers? Who are your customers? Which of your suppliers causes you the most problems? What are you going to do about it? Few of us are without some form of supplier and customer and not every one of them is perfect. It is worth considering and responding appropriately.
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Review: Argentina Under the spotlight Written by David Bamford from OilEdge Thursday, April 26, 2012 It is hard to avoid stories about the Argentine oil industry at present. In light of three key issues, namely: 1) the battle for control of YPF 2) the ongoing search for oil in the Falklands; and 3) a series of downgrades by Moody's for firms operating in the country, Argentina is the talk of the global oil industry - but for all the wrong reasons. For some time now Argentina has been regarded as something of an underperformer in the oil sector - especially among emerging market nations - and this is something the incumbent administration of President Cristina Kirchner is acutely aware of. 1. Eager to turn the tide, the Argentine government has made moves to expand state control over the oil sector in recent weeks, and a rumoured nationalisation of YPF (the former national oil and gas company, in which Spanish major Repsol now has a controlling stake) is currently on the cards. The Argentine government has also exerted heightened pressure on YPF over recent weeks to invest more in exploration and development in the local industry. In turn, this has prompted Madrid to step-up diplomatic pressure on Argentina amid continued uncertainty over the Latin American nation's plans for the local unit of Spain's flagship oil giant. Uncertainty reigns supreme - as such, watch this space. 2. In the lead up to the recent 30th anniversary of the Falklands War, the ongoing search for oil on the disputed islands has inflamed tensions in Buenos Aires. As a result, Argentina has acted swiftly to take legal action against any companies involved in oil exploration in the region. This move came as the latest measure by Argentina to re-assert its claim to sovereignty over the islands, which are known as 'Las Malvinas' in Spanish. At present, several British companies are busy searching press@oilvoice.com | +44 208 123 2237
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for oil off Falklands' waters, and with some success. Recently, AIM-listed Rockhopper announced that it has discovered significantly reserves and was seeking investment partners to allow it to begin production. 3. As the state steps up its attempts to control more of the sector, the business environment for oil firms operating in Argentina is subsequently deteriorating, and fast. Back in October 2011, Buenos Aires introduced new measures forcing operators to keep as much as 30% of export revenues in the country. Then in February of this year, the government moved to suspend the 'OilPlus' programme, a mechanism designed to create incentives for exploration. The fiscal incentives previously allowed firms to sell output from new and unconventional oil fields above the prevailing state-set prices. And more recently, there have been growing rumours of the renationalisation of YPF, which was privatised back in 1999 when it was bought by Repsol. On top of this, a number of foreign firms operating in the country (such as Brazil's Petrobras) have seen some of their licenses revoked. All these moves combined to prompt ratings agency Moody's to downgrade the ratings on several oil operators in Argentina. Petrobras Argentina, the local arm of Brazil's Petroleo Brasileiro, YPF, Pan American Energy, and Petersen Energia were the targeted parties. In sum, the Argentine government's continued strategy of interference in the oil sector will continue to take its toll on the industry's performance and potential growth over the weeks and months (and possibly even years) ahead. As things stand, the future of the oil industry in Argentina is what could be described as unpredictable at best. One thing is certain, however: Argentina stands a long way off becoming a key oil player in South America once more.
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Recently Added Companies
Cress Oil Oil and Gas
The OilVoice database has a diverse selection of company profiles, covering new start-up companies through to multi-national groups. Each of these profiles feature key data that allows users to focus on specific information or a full company report that can be accessed online or printed and reviewed later. Start your search today!
Cress is an independent oil and natural gas exploration and production company headquartered in Houston, Texas. Cress Oil is currently building shareholder value by actively engaging in the exploration, development, exploitation, and production of oil and natural gas worldwide. http://www.oilvoice.com/Descriptionl/3d62786d.aspx
Empire Oil & Gas Oil and Gas
NDB Energy Energy Management
NdB Energy has over 10 years experience in all forms of Energy Management. The company is based in Manchester, UK, with a further base in Birmingham and undertake projects Nationwide. http://www.oilvoice.com/Description/bd9b7804.aspx
Empire Oil and Gas NL, together with its subsidiaries, engages in the exploration, development, and production of oil and gas in Australia. http://www.oilvoice.com/Description/caa249de.aspx
Cub Energy Inc Oil and Gas
Breezer Ventures Natural Resources
Breezer Ventures is a publicly traded independent emerging natural resources company. The company’s focus is on the acquisition, exploration, development and production of oil, natural gas and minerals. http://www.oilvoice.com/Description/bb1ef3ae.aspx
Ironridge Energy Investor
Ironridge is a long-only institutional investor, making direct equity investments in small cap public companies. http://www.oilvoice.com/Description/b051d8eb.aspx
Cub Energy Inc, with offices in Houston, Kyiv, and Toronto, is an international leader in the oil and gas industry. Formed by the convergence of two of Eastern Europe’s leading energy companies, these two established companies will move forward as one of the five largest oil and gas operators in energy-rich Ukraine, with ready markets across Europe. http://www.oilvoice.com/Description/fc8d856f.aspx
Argosy Energy Inc. Oil and Gas
Argosy is a growth oriented, public corporation engaged in the acquisition, exploration, development and production of crude oil and natural gas in Alberta, Canada. http://www.oilvoice.com/Description/0fd24c28.aspx
Probe Resources Ltd. Oil and Gas
Probe is a publicly traded oil and gas exploration and production company listed on the TSX Venture Exchange NSX under the symbol PBR.H .
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Doing more with data Kuala Lumpur, October 24-26, 2012 Finding Petroleum / Digital Energy Journal is running 3 one day conferences in Kuala Lumpur, Malaysia, on October 24, 25 and 26 on doing more with petroleum data, covering drilling, subsurface and production data. These 3 events will present the most exciting new technology to help manage and work with all aspects of data in the upstream all and gas industry. The conferences are for people who work with drilling, subsurface and production data, who want to learn about new ideas and new technologies to make their data work harder, to improve efficiency and safety of drilling, ability to find new reservoirs and extend existing ones, and maximise production. The event is scheduled to co-incide with the Energistics National Data Repositories conference in KL on October 21-24. Attendance is free - register now to secure your place.
October 24 - Doing more with with drilling data October 25 - Doing more with subsurface data October 26 - Implementing data tools faster The aim is (i) to make it easier for people working in KL oil and gas companies and service companies to find out more about the latest new technology to help manage data, and (ii) to provide technology companies attending the National Data Repositories event with a chance to meet a local audience during the same trip. The events are supported by the South East Asia Petroleum Exploration Society and Energistics, and timed to co-incide with the Energistics National Data Repositories conference in KL. The events will be free to attend. For days 1 and 2, we will look for financial contributions from speakers - in the range 14600 MYR / USD 4760 / GBP 3000 for a morning slot and MYR 9750 / USD 3200 / GBP 2000 for an afternoon slot. Sponsorship opportunities are also available. The third day "getting data implemented faster" will be panel discussions, chaired by Jerry Hubbard, CEO of Energistics, and participants in the first 2 days' sessions will be invited to join.
For enquiries about sponsorship and speaking please contact our sales manager John Finder on +44 208 150 5292, e-mail jfinder@onlymedia.co.uk
Reserve your place now at FindingPetroleum.com
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The Permian Basin Oil Play: 'Unleashed' Written by Keith Schaefer from Oil & Gas Investments Bulletin Friday, April 27, 2012 The Cline Shale in Texas is one of the hottest new shale plays in the USA. Devon Energy (DVN-NYSE) is suggesting it's a huge play, pervasive over a very large area on the eastern shelf of the Permian Basin. In fact, the Permian is bursting with new resource plays-what's old is not only new again, but pistol hot. One analyst report last week said several new resource plays in the Permian are being 'unleashed,' and that there are so many multiple horizons or formations that are stacked on top of each other in the Permian-that are just now being accessed with horizontal drilling-that it's like having 10 or 11 EagleFord shales stacked on top of each other. And interestingly, there is one Canadian listed junior with a large land position close to the middle of Devon's Cline Shale map. More on that later.
Source: Devon presentation Apr 2, 2012 Devon got the market's attention earlier in April when they said they had staked over press@oilvoice.com | +44 208 123 2237
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500,000 acres and had an unrisked 3.6 billion barrels of oil there. 'Unrisked' is a fairy tale number that could be right if every single well hits their type curve. Devon President John Richels also said the acreage was worth $1.35 billion from a partner-presumably for 50%. Devon gave a 'type curve' for a Cline Shale well-a guess at how much the well would produce over time-of total production 570,000 barrels of oil equivalent-and 85% of that would be oil and liquid rich gas. (The industry calls that the EUR-Estimated Ultimate Recovery.) The well would flow an average 600 boe/d for the first month (that's called an 'IP30'-the Initial Production rate for the first 30 days the well is on production) and cost $6.5 million. It's early days in the Cline-Devon's goals right now are to get more core data, figure out the best way to complete, or frack it (how much pressure, do you use water or oil or propane, what direction do you drill, what chemistry do you use etc.). But initially, they're saying the Cline is an organic rich shale, with Total Organic Content (TOC) of 1-8%, with silt and sand beds mixed in. It's about 60-150 metres (200-550 feet) thick. Contrast that to the Bakken where the payzone is often only 10-25 m thick. It lies in a broad shelf, with minimal relief (that means it lies nice and flat), and it's in the 'oil window' (a depth where the right temperature and pressure allow the ancient organic matter to turn into oil-gas is below oil) and has nice light oil of 38-42 gravity with excellent porosity of 6-12%. So there are lots of holes in the rock containing oil, but all those holes aren't well connected, meaning it has low permeability. That is normal in these tight oil plays. And there are frack barriers above and below the shale-rock types that are really hard and would likely halt any fracturing beyond the Cline-this is important because it means that water will not likely be able to come into the well (and water supersedes oil in coming back up the well-most of the time it's a real negative) from other formations. 'We're very excited about the Cline,' Andy Coolidge, Devon's vice president for the Permian Basin, said recently. 'We expect to deliver highly economic and robust production growth.' Technically, the Cline Shale-also called the Lower Wolfcamp formation-looks like a great play. And because it's in the Permian Basin, services like drilling rigs and fracking spreads are inexpensive and easy to access. It's fascinating for me to watch all these new plays get discovered and developed in Texas, particularly the Permian, because I keep thinking-but it has been explored for years…how do they keep finding new stuff? The reason is mostly the Shale Revolution. The Permian Basin is already one of the most prolific oil areas in North America, producing 35 billion barrels from multiple zones. But now there are even more zones, but they're all 'tight oil.' They're being made productive by companies who can find the time and resources (qualified people and money) to test more expensive and time consuming horizontal wellswhich are usually $5-$9 million now-and quietly assemble a land position without bidding up prices. press@oilvoice.com | +44 208 123 2237
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Horizontal technology and hydraulic fracturing are old news now, in one sense, but the oil and gas industry is conservative and prior to 2008 it was mostly early adopters in the industry that used it. Only since 2009, after oil prices moved back up sharply, did horizontal technology become truly mainstream. All the new productive zones-what the industry calls 'stacked pay'; payzones (or productive oil formations) that are stacked on top of each other-can now make a well extremely profitable, as it can often produce from several formations over time. This chart from Devon's April 2 presentation shows as many as 15 productive zones:
The Cline is actually the 'source rock,' the bottom layer of the Wolfcamp formation, which has been drilled with great success vertically for years. But like other formations, exploration slowly moves out from a core area. The Wolfcamp was originally thought to be 20 miles wide and 60 miles long, but now it's 40×100 miles‌ and exploration continues.
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This should all be good news for a fast-growing junior producer with a big land position, the details of which I will share with you in my next Free Alert.
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EnQuest to expand North Sea oil projects Written by Raj Ladwa from Contract Jobs Friday, April 27, 2012 Oil firm EnQuest is looking to further its interest in the North Sea oil fields by attempting to acquire a further stake in the Kraken oil discovery in the East Shetland basin. Oil & gas contractors may be able to look forward to greater job prospects as EnQuest look to develop more projects in the Kraken oil discovery. EnQuest are looking to increase their stake by 15 per cent in blocks 9/2B and 9/2C after proposing to pay $90 million initially, however the payment could increase $144 million should reserves exceed 166 million barrels. The new proposal means EnQuest's total stake in the Kraken oil fields will increase to 60 per cent. The latest deal also mirrors a previous deal made recently in January of this year, where the company acquired a 25 per cent stake in the Kraken fields from Nautical Petroleum plc. Amjad Bseisu, Chief Executive of Enquest said: 'EnQuest is pleased to increase further its interest in Kraken, we are enthusiastic about its potential.' He added 'EnQuest's execution team is now leading this development and is taking on operatorship earlier than previously planned; we are combining forces with partners with deep expertise in this project. EnQuest is moving forward one of the most exciting press@oilvoice.com | +44 208 123 2237
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development projects in the UK North Sea.' In a deal similar to the previous one with Nautical, the cost per barrel for EnQuest amounts to $6 before tax.
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