RPSEA Articles RSS Feed

Drilling Moratorium Working Group Report by the Bipartisan Policy Center

Wed, 01 Sep 2010 17:00:00 GMT

RPSEA Board Member and Environmental Advisory Group Chair Dr. Rich Haut was selected to the Working Group as an energy and environmental expert formed by the Bipartisan Policy Center to provide input requested by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling.

At the request of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, the Bipartisan Policy Center formed a working group to consider the use of moratoria as a method for mitigating future harm in the immediate aftermath of a spill. The working group evaluated the appropriate questions for the federal government to consider in determining which of the suspended activities could safely resume if the moratorium were lifted. The working group concluded that the need to impose a moratorium on deepwater drilling reflects how unprepared both government and industry were for an incident of this magnitude. The working group believes that compliance with the Interior Department’s Notice to Lessees 5 and 6 and other actions by the Department of Interior (DOI) will achieve a significant and beneficial reduction of risk. This new regime will provide an adequate margin of safety to responsibly allow the resumption of deep water drilling in the Gulf of Mexico.

To view the report and more information on it, click here.

1-Sep-10 12:00 PM

RPSEA Releases White Paper on Research and Technology Needs for Deepwater Development Forum

Danette Mozisek — Fri, 27 Aug 2010 14:00:00 GMT

The incident involving the Deepwater Horizon underscores the needs to address critical aspects of deepwater developments. RPSEA held a forum at the Houston Advanced Research Center (HARC) to identify the critical issues and priorities related to deepwater development. The forum focused on identifying and prioritizing research and technology development required in four main areas:

Enhance Technologies to Minimize Incidents – What is needed to prevent incidents from occurring?
Brainstorming Session on "What Else Can Go Wrong?" in Ultra-Deepwater?
Identify, Develop and Improve Proactive and Reactive Response Procedures and Processes – What is needed to minimize the time to respond to an incident? What is needed to minimize the environmental impact?
Develop Understanding of the Value of Ecosystem Services and Identify Locations of High Value in a Seasonally Dynamic Ecosystem – what is needed to understand the movement of marine life/wildlife that may be affected by an incident? What is needed to understand the impact on ecosystems? What is needed to understand the value of ecosystems at risk?

Please click here to view the white paper that resulted from the forum.

Please click here to view all post materials from the forum.

27-Aug-10 9:00 AM

A ‘culture of safety’ is needed after moratorium ends

Ashley Organ — Sun, 15 Aug 2010 02:00:00 GMT

Since the Deepwater Horizon incident and the subsequent offshore drilling moratorium in the Gulf of Mexico (GoM), folks in the oil and gas industry have been talking about the ramifications to operations.

Though no one knows yet what will change for GoM operations, an obvious focus will be (and should be) safety, and industry organizations already are working on ways for improvement. In July 2010, the Houston Advanced Research Center hosted a technology workshop to identify research and technology needs. The Research Partnership to Secure Energy for America held a panel discussion at the forum to address deepwater development needs moving forward.

Tom Williams, managing director at Nautilus International LLC, said risk actually will increase when drilling eventually resumes. Williams gave several reasons for his prediction. First, stopping in the middle of operations likely will make it difficult to jump back in once activity resumes. Second, he expects an increase in tanker traffic.

Finally, exporting the best rigs and the loss of experienced drilling staff to active locations internationally will make it difficult to bring the highest quality equipment and personnel back to the GoM. “The best rigs and responsible drillers will get work and go elsewhere,” Williams said. “We’ll end up with ‘junkier’ rigs (they’ll still meet regulations, but they’ll be less capable).” Further, recruitment of new people will stop since the best and brightest likely will not apply for uncertain jobs, he added.

Williams also noted that employees (returning and new) will require additional training and certification. “As with the baseball offseason, players need a spring training to get back in shape,” he said. “From a safety standpoint, we can’t afford to have spring training.”

Taking into account lessons learned from occurrences similar to the event in the GoM, Greg Anderson, international board director and consulting and training president for Moody International, said the 1988 Piper Alpha tragedy in the North Sea focused attention on the impact of people’s behavior as a contributing factor in accidents.

“Whether Piper Alpha or any other incident, large or small, over 97% of the time human behavior plays a significant role,” Anderson said. “A key focus area needs to be how does a company or industry create a culture of safety where people ‘believe in’ versus ‘comply with’ safety.”

According to Anderson, “A culture of compliance only works under 1) constant supervision; and 2) absolute adherence to policies and procedures.” To create a culture of safety and compliance, he recommended addressing the “human element” by teaching people to:
•    Take personal responsibility for their safety and the safety of those around them;
•    Assess risk and reduce hazards associated with a task; and
•    Communicate better.

Although safety procedures can have a direct impact on employees working on the rigs (both onshore and offshore), it is evident from the Deepwater Horizon incident that those effects can ripple throughout the company and all the way to the top.

In the wake of the event in the GoM, companies, operators, and more importantly, individuals should lead by example and hold one another accountable for keeping up with the highest safety standards and practices. Safety legislation and regulations can only go so far. Ultimately, employees choosing to work safely without taking shortcuts and rewarding and tolerating the same behavior in others will drive a culture of safety.

To view the actual blog, click here.

14-Aug-10 9:00 PM

Technology, Methods Reflect Industry Quest to Reduce Drilling Footprint

Al Pickett — Wed, 11 Aug 2010 15:00:00 GMT

RPSEA's 2008 project, The Environmentally Friendly Drilling Systems Program led by the Houston Advanced Research Center, is featured in the July edition of the The American Gas & Oil Reporter.

Operators, service contractors, equipment manufacturers, and major university and research laboratories are teaming to devise innovative methods to reduce the environmental footprint of onshore drilling, completion and production operations. Examples include drilling multiple horizontal or directional wells from a single pad using smaller and lighter rigs, well site and road construction using low-impact technologies, small-hole coiled tubing drilling, “green” completions in shale gas plays, centralized hydraulic fracturing locations, and recycling flowback water from large frac jobs.

The term often used to describe the industry’s efforts is environmentally friendly drilling(EFD). But how does one go about determining whether a given method or technology actually reduces the environmental footprint of oil and gas operations in the field? The Houston Advanced Research Center–which was started by George Mitchell, the father of the Barnett Shale play 30 years ago–is working to develop an environmental “score card” to rate the impact of EFD efforts, according to Rich Haut, HARC program manager.

To view the entire article, please click here.

11-Aug-10 10:00 AM

The Economic Impact of the Gulf of Mexico Offshore Oil and Natural Gas Industry and the Role of the Independents

Richard Fullenbaum — Wed, 04 Aug 2010 20:00:00 GMT

A recent study released by IHS Global Insight entitled The Economic Impact of the Gulf of Mexico Offshore Oil and Natural Gas Industry and the Role of the Independents examines the economic significance of the Gulf of Mexico offshore oil and gas industry—today and in the future. It does so in terms of jobs, economic value and government revenue. Among other things, the study indicates that the oil and gas industry accounts for about 400,000 jobs, $70 billion in economic value and $20 billion in federal and state revenue and projects those numbers to increase significantly in the future.

Please click here to view the study.

4-Aug-10 3:00 PM

MIT Releases The Future of Natural Gas

Jack Deutsch — Mon, 26 Jul 2010 14:00:00 GMT

The Massachusetts Institute of Technology (MIT) has released its long awaited new natural gas study, The Future of Natural Gas. Mike Ming, Research Partnership to Secure Energy for America (RPSEA) president, served on MIT's advisory committee for this two-year effort, sponsored in part by the American Clean Skies Foundation, whose press release is below.

New MIT Report Calls On U.S. To Maximize Value Of Substantial U.S. Natural Gas Resources By Using More Gas For Electricity Generation and Transportation — Large National Security and Environmental Benefits Seen From Fuel Shift

WASHINGTON — A new two-year study of natural gas by the Massachusetts Institute of Technology (MIT) Energy Initiative backs greater use of the fuel in the electric power sector. MIT says that a near term fuel shift could reduce the power sectors’ carbon dioxide emissions by over 10 percent. Given the recent expansion of domestic U.S. natural gas resources, MIT’s study also urges the EPA to streamline the rules for converting cars and trucks to run on natural gas so that conversion costs per vehicle can be reduced by over 70 percent to European levels.

An interim report on the study, titled "The Future of Gas," is being released on June 25 and coincides with President Obama’s call for using natural gas as a bridge fuel to accelerate America's movement toward a clean energy future as well as congressional efforts to curb greenhouse gases. The report says that even a modest shift from coal to natural gas at power plants would achieve a reduction in carbon emissions equal to half of the goal the president set in Copenhagen for 2020.

“There is no longer any doubt that we have the capacity to repower our electricity sector and move away from dirtier fuels,” said Gregory C. Staple, CEO of American Clean Skies Foundation, one of the study’s sponsors. “The MIT report demonstrates that. It’s now up to the Administration and Congress to ensure that any new energy legislation contains a robust natural gas title that reflects these findings.”

"At a minimum," Staple said, "a new energy bill should adopt stricter greenhouse gas emission standards for existing power plants and set a timetable for phasing out the least efficient and dirtiest coal-fired power plants, roughly 20% to 25% of generating units. The power from these plants should be replaced with electricity derived from natural gas and renewable fuels."

"The President might also direct the Secretary of Energy to convene a special task force to advise the White House within 180 days on the best way to accomplish these goals and to make additional recommendations on how America should use the 21st century gas resources identified by MIT."

Recent attention to the costs associated with coal and oil production has given momentum to natural gas. In a June 2 speech at Carnegie Mellon University, the President specifically called for “tapping into our natural gas reserves” as a move toward a clean energy future. “The next generation will not be held hostage to energy sources from the last century,” he added. "We are going to move forward."

Other major findings and recommendations made by the MIT report include the following:

-- On Carbon Policy: U.S. CO₂reduction policy should create a level playing field where all energy technologies can compete, subject to legislated CO₂ emissions goals, without long term subsidies or other preferential policy treatment. In the absence of policies that create a level playing field, the report calls for an interim policy to replicate as closely as possible the major consequences of a level playing field approach to CO₂ reductions. That entails facilitating energy demand reductions and displacement of some coal generation with natural gas.

-- On National Security: Since natural gas issues will appear more frequently in the U.S. energy and security agendas, energy issues should be integrated into U. S. foreign policy, a move that will require coordination of various agencies and support from the Executive Office of the President.

-- On the Environment: Public information on the production process for natural gas should be increased and the complete disclosure of all components of hydraulic fracture fluids should be required. Integrated regional water use and disposal plans for gas production also should be required.

-- On R&D: The government should bolster research into the development of shale gas. Research could help reduce water usage and other environmental impacts of drilling.

-- On Transportation: Regulatory and policy barriers to the development of natural gas as a transportation fuel should be removed so it can compete with other technologies. Such a move would lessen oil dependence as well as reduce carbon emission.

* * *

MIT’s gas study follows prior reports by the MIT Energy Initiative on The Future of Coal (2007) and The Future of Nuclear Power (2003). In addition to ACSF, the current MIT study was underwritten, in part, by Hess Energy and the Colombian National Agency of Hydrocarbons. The Energy Futures Coalition supported dissemination of the study’s results.

# # #

26-Jul-10 9:00 AM

Why IPAMS Was Renamed Western Energy Alliance

Mon, 19 Jul 2010 20:00:00 GMT

RPSEA Board Member Jim Schroeder has been named president of the Western Energy Alliance, formerly the Independent Petroleum Association of Mountain States. Read below the article on E&P's website

After more than 35 years of advocating for Rocky Mountain oil and gas producers, the Independent Petroleum Association of Mountain States (IPAMS) has changed its name to the Western Energy Alliance. The change was approved at the organization’s recent annual meeting in Beaver Creek, Colo.

“With a name that better reflects who we are, we are in a better position to speak for the men and women who are working every day to ensure that our nation has the energy it needs,” says executive director Marc W. Smith.

The Alliance will continue to testify before state and federal agencies and the US Congress, as it has since inception. The name change was sparked by a desire to become more descriptive and all-inclusive, since the organization’s 430 member companies search for oil and natural gas, according to immediate past president George Solich, who is also chief executive of Cordillera Energy Partners III LLC.

Unfortunately, he said, some anti-drilling interests in the region wrongfully assumed the old name implied that members were actually willing to drill on mountain tops.

Mesa Energy Partners president James Schroeder was elected the group’s new president and Tom Sheffield of Pioneer Natural Resources was named first vice president. Further information on the organization’s activities can be found at the new website, westernenergyalliance.org.

To view the actual article on E&P's website, click here.

19-Jul-10 3:00 PM

Gov. Perry Announces Formation of Gulf Project

Fri, 09 Jul 2010 04:00:00 GMT

Gov. Rick Perry today announced the formation of the Gulf Project, a coalition of energy and environmental scientists, policy experts, academic researchers, private sector research scientists and state officials who will work to ensure Texas never endures the environmental and economic disaster currently occurring in the Gulf of Mexico as a result of the Deepwater Horizon rig explosion.

“To keep our status as the energy capital of the nation and preserve our environment, jobs and economy, Texas must become the world leader in developing the next generation in offshore oil exploration safety and response,” Gov. Perry said. “The Gulf Project is an unprecedented collaboration of the state’s top scientists, engineers and researchers, focused on protecting our residents, environment and economy, and solving the unique challenges presented by the next generation of domestic energy exploration and production.”

The University of Texas, Texas A&M University, the University of Houston, Rice University, Texas Tech University, Southern Methodist University, the Research Partnership to Secure Energy for America (RPSEA), Texas General Land Office and Texas Railroad Commission are participating in the effort, and other experts and institutions of higher education may join later.

A key challenge for the industry is the current inability to test full drilling systems to determine their safety, and to develop proven methods of responding to large-scale oil spills such as the Deepwater Horizon incident. Other nations including the United Kingdom, Norway and Brazil are competing to develop a seafloor testing facility.

Each participating institution is already involved in significant oil and gas drilling research, and already have the facilities – such as Texas A&M’s Offshore Research Technology Center and Rice’s National Corrosion Center – but none is able to test a full drilling system to ensure it can safely operate under all deep sea conditions. Additionally, the Johnson Space Center is home to facilities that can test the safety and reliability of current and next generation equipment, which could be used as research proceeds.

Gov. Perry believes domestic oil and gas exploration remains critical to meeting the nation’s energy needs. Texas’ energy industry continues to fuel the nation, supplying 20 percent of the nation’s oil production, one-fourth of the nation’s natural gas production, a quarter of the nation’s refining capacity, and nearly 60 percent of the nation’s chemical manufacturing. Additionally, Texas’ energy industry employs 200,000 to 300,000 Texans, with $35 billion in total wages.

To view the actual press conference, click here.

8-Jul-10 11:00 PM

RPSEA Vice-President of Technical Programs testifies in front of the House Committee on Science and Technology

Danette Mozisek — Thu, 01 Jul 2010 20:00:00 GMT

RPSEA is and has been actively involved in the call for action on the tragic DeepWater Horizon incident since its occurrence. RPSEA is working on several fronts to determine needs and develop proposals for R&D, both public and private, to prevent and respond to incidents such as this.

RPSEA Board Member Dr. Rich Haut and RPSEA Vice President of Technical Programs James Pappas have now both testified before Congress on this topic. In the following link, Mr. Pappas’ testimony begins at 14:30, but prior to that there is a very informative statement by Rep. Ralph Hall regarding the Section 999 program.

Click here to view the testimony from Wednesday's hearing.

Click here to view the written statement.

Click here to view Oil&Gas Journal's article on the hearing.

1-Jul-10 3:00 PM

Briefing on “Beneath the Surface of the BP Spill: What’s Happening Now, What’s Needed Next”

Wed, 16 Jun 2010 22:00:00 GMT

The Subcommittee on Energy and Environment held a briefing entitled “Beneath the Surface of the BP Spill: What’s Happening Now, What’s Needed Next” on Wednesday, June 9, 2010, in 2123 Rayburn House Office Building. RPSEA Board Member and Environmental Advisory Group Chair Dr. Rich Haut was asked to testify at the briefing.

Witnesses

Tadeusz W. Patzek, Ph.D., Professor and Chair, Department of Petroleum and Geosystems Engineering, University of Texas, Austin
Thomas M. Leschine, Ph.D., Director, School of Marine Affairs, University of Washington
Samantha B. Joye, Ph.D., Professor of Marine Sciences, University of Georgia
Richard Haut, Ph.D., Senior Research Scientist, Houston Advanced Research Center
Philippe Cousteau, CEO, EarthEcho International

Please click here to view the entire briefing.

16-Jun-10 5:00 PM

RPSEA Selects Projects to Award $10 Million for the Ultra-Deepwater Program

Danette Mozisek — Fri, 28 May 2010 01:00:00 GMT

SUGAR LAND, Texas – May 26, 2010 – The Research Partnership to Secure Energy for America (RPSEA) announces eleven proposals under the Ultra-Deepwater Program have been selected for negotiations leading to an award under its contract with the Department of Energy’s (DOE) National Energy Technology Laboratory and in support of the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and Development Program that was established by DOE pursuant to the Energy Policy Act of 2005.

Awards, open to any U.S.-based organization, are negotiated once project selections are made within each RPSEA program, Unconventional Resources, Small Producer and Ultra-Deepwater. These projects focus on improving safety, minimizing environmental impacts, increasing efficiencies and reducing costs of domestic hydrocarbon resources, maximizing their value. Collaboration of America’s leading universities, research institutions, independents, national laboratories, state associations and service and operating companies is encouraged to utilize each of their research and technology resources. Proposals must provide a minimum of 20% cost share with up to 50% for field demonstration projects.

"The 2009 Ultra-Deepwater Program project selections add to the existing 30 projects to form the foundation of a strong, interconnected assembly of tools and processes that will ultimately close the technological gaps in this challenging, but needed environment," said RPSEA Vice President of Technical Programs James Pappas. “The program goal is to unlock the potential for domestic hydrocarbon resources in water depths of 1,500 meters or greater by creating solutions to energy needs.”

Ultra-Deepwater Program Selected Projects

Autonomous Inspection of Subsea Facilities
Project Leader: Lockheed Martin Corporation
Additional Project Participants: Florida Atlantic University, Seanic Ocean Systems

High Resolution 3D Laser Imaging for Inspection, Maintenance, Repair and Operations
Project Leader: 3D at Depth, LLC
Additional Project Participants: UTEC Survey Inc., CDL Inc.

Sensors and Processing for Pipe, Riser, Structure, and Equipment Inspection to Provide Detailed Measurements, Corrosion Detection, Leak Detection and/or Detection of Heat Plumes from Degraded Pipeline Insulation
Project Leader: Blueview Technologies Inc.

Development of Carbon Nanotube Composite Cables for Ultra-Deepwater Oil and Gas Fields
Project Leader: Los Alamos National Laboratory
Additional Project Participant: Chevron Energy Technology Company

Intelligent Production System for Ultra-Deepwater with Short Hop Wireless Power and Wireless Data Transfer for Lateral Production Control and Optimization
Project Leader: Tubel Technologies, Inc.
Additional Project Participant: University of Houston

Fatigue Testing Of Shrink-Fit Riser Connection for High Pressure Ultra-Deepwater Risers
Project Leader: Subsea Riser Products
Additional Project Participants: BP America, Inc.; Chevron Corporation

Deepwater Subsea Test Tree and Intervention Riser System
Project Leader: DTC International, Inc.
Additional Project Participants: Stress Engineering Services, Inc., Titanium Company, Det Norske Veritas

UDW Seabed Discharge of Produced Water and/or Solids
Project Leader: Fluor Enterprises, Inc.
Additional Project Participants: The University of Tulsa, Colorado School of Mines, University of Houston, Rice University, Texas A&M University, Louisiana State University, Cameron, FMC Corporation, NATCO Group Inc., GE Oil & Gas, Schlumberger Limited, Halliburton, Baker Petrolite, Coastal Chemical Company, Oceaneering International, Inc., Subsea 7 Limited, Framo Engineering, Roxar

Displacement & Mixing in Subsea Jumpers Experimental Data and CFD Simulations
Project Leader: The University of Tulsa
Additional Project Participants: Anadarko Petroleum Corporation, BG Group, BP America, Inc., BHP Billiton, Calsep International Consultants, Champion Technologies, Inc., Chevron Corporation, Eni S.p.A., Statoil, ONDEO, Nalco Company, Marathon Oil Corporation, Petrobras America, Inc., TOTAL E&P USA, Inc.

Gyroscope Guidance Sensor for Ultra-Deepwater Applications
Project Leader: Laserlith Corporation
Additional Project Participants: Colorado School of Mines, MicroAssembly Technologies, Inc., Ideal Aerosmith, LLC, X-FAB Silicon Foundries Group

A 1,000 Level Drill Pipe Deployed Fiber Optic 3C Receiver Array for Deep Boreholes
Project Leader: Paulsson, Inc.
Additional Project Participants: US Sensor Systems, Inc., Premier Drill Pipe, LTD, Kemlon Products, Inc., Optiphase, Inc., NORSAR

Funding for the projects is provided through the Department of Energy’s “Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and Development Program” and established pursuant to the Energy Policy Act of 2005. This program—funded from lease bonuses and royalties paid by industry to produce oil and gas on federal lands—is specifically designed to maximize the value of natural gas and other petroleum resources of the United States by increasing the supply of such resources and reducing the cost and the efficiencies of exploration for and production of such resources. The Secretary of Energy has ultimate responsibility for and oversight of all aspects of this program. RPSEA is under contract with the U.S. Department of Energy’s National Energy Technology Laboratory to administer three elements of the program. RPSEA is a 501(c)(3) nonprofit consortium with more than 160 members, including 25 of the nation's premier research universities, five national laboratories, other major research institutions, large and small energy producers and energy consumers. The mission of RPSEA, headquartered in Sugar Land, Texas, is to provide a stewardship role in ensuring the focused research, development and deployment of safe and environmentally responsible technology that can effectively deliver hydrocarbons from domestic resources to the citizens of the United States. Additional information can be found at www.rpsea.org.

27-May-10 8:00 PM

NETL Unconventional Fossil Energy Technologies Funding Opportunity Announcement

John Duda — Thu, 27 May 2010 04:00:00 GMT

The intent of this Department of Energy (DOE), National Energy Technology Laboratory (NETL) Funding Opportunity Announcement (FOA) DE-FOA0000312 is to select and award projects that focus on (1) advanced simulation and visualization capabilities to enhance production and minimize environmental impacts associated with the development of domestic unconventional resources and (2) advanced, next-generation carbon dioxide enhanced oil recovery (CO₂-EOR).

The objective of this FOA is to fund research that results in proof-of-concept and technology ready for field and/or commercial application. The program is seeking to add multiple (6-11) projects to its portfolio as a result of this FOA. Link to the listing of the FOA

26-May-10 11:00 PM

Future of Deepwater Drilling

Tue, 18 May 2010 23:00:00 GMT

RPSEA Vice President of Technical Programs James Pappas is interviewed by Clean Skies, The Energy and Environment Network, on the future of deepwater drilling.

Clean Skies News Mission-

Clean Skies News is committed to presenting the highest-quality, unbiased news coverage and informed analysis of events and trends at the intersection of energy and the environment. Our journalists focus on providing accurate information, defining emerging trends, and assessing important political developments concerning America’s environmental and energy future. Our goal is to be an honest broker of news and information about one of the most important stories of our time.

Click here to view the live interview.

18-May-10 6:00 PM

Global Unconventional Gas 2010: Unlocking Your Potential

Thu, 06 May 2010 13:00:00 GMT

Unconventional gas provides abundant, affordable, and cleaner-burning energy to a world demanding stable energy prices, security, and solutions to the climate challenge. Advances in technology have enabled these “new” resources to be developed economically in the United States — now supplying over 40% of total U.S. production and expected to supply well over 50% by 2020. The transfer of knowledge combined with new technology and processes tailored to specific resource plays will be essential to developing unconventional gas in other regions of the world.

Global Unconventional Gas 2010: Unlocking Your Potential is the world’s premier international conference and workshop designed to transfer knowledge and best practices gained in the U.S. Energy professionals and stakeholders will hear from top U.S. and international experts about the enormous potential of gas shale and other unconventional gas resources across the globe and learn about the latest issues, approaches, processes and technologies key to unlocking the resources in their own countries.

Who will be there—

· E&P Managers

· Engineers

· Geologists

· Investors

· Policy Makers

· Officials

Conference highlights you won't want to miss—

· Dynamic keynote addresses on the role of unconventional gas in a sustainable global energy mix and what additional gas supplies make possible in terms of demand

· Presentations from leading E&P and service companies addressing key issues associated with resource development

· Candid, interactive panel discussions about opportunities and insights into key global and U.S. shale plays

· A learning workshop to review current and developing technologies

· A Welcome Reception, luncheons, and refreshment breaks, where you'll share views and experiences with world leaders in unconventional gas resource development.

Hear keynote presentations and perspectives from—

· Aubrey K. McClendon, Chairman and CEO, Chesapeake Energy Corporation

· Dr. Abdul Rahim Hashim, President, IGU

· Christopher Flavin, President, Worldwatch Institute

· Chris Smith, Deputy Assistant Secretary, U.S. Department of Energy

· Leading shale technology, resource, and business experts

· Prominent European and global energy officials

What you'll gain—

· A real-time perspective on the global prospects for unconventional gas

· Proven approaches to accelerated unconventional resource development

· Resources and techniques to effectively address technology challenges

· Knowledge and connections to leading and emerging industry players

For more information and to register, click here.

6-May-10 8:00 AM

Best practices database reduces impact of drilling, production

Richard Haut — Thu, 22 Apr 2010 22:00:00 GMT

E&P Magazine's April issue features one of RPSEA's 2008 unconventional resources projects, The Environmentally Friendly Drilling Systems Program, led by the Houston Advanced Research Center.

The Environmentally Friendly Drilling Systems Program (EFD) — co-funded by the Research Partnership to Secure Energy for America (RPSEA), industry, and environmental organizations — works to integrate advanced technologies into systems in order to significantly reduce the environmental and social impact of drilling and production. One of the projects of the EFD program, the Intermountain Oil and Gas BMP Project, is coordinated by staff of the Natural Resources Law Center (NRLC) at the University of Colorado Law School.

The focus of the BMP project, accessible at: http://www.oilandgasbmps.org, is a comprehensive, free-access, web-based database of oil and gas best management practices for the Intermountain West. The database currently includes over 6,000 BMPs for addressing impacts to a wide variety of surface resources — air and water quality, visual aesthetics, health and safety, wildlife, and others. It includes practices currently in use, required, or recommended for responsible resource management in Colorado, Montana, New Mexico, Utah, and Wyoming and can be searched by resource (e.g., air quality or wildlife species), location (region, state or field), or phase of development (e.g., drilling, production, reclamation, monitoring, etc.). The database can also be searched by keywords for specific topics of interest (e.g., practices applicable to stream crossings, offsets from sage grouse leks, installation of power lines, roads, reserve pits, etc.) For the BMP search function, see http://www.oilandgasbmps.org/advsearch.php.

The database has been developed in cooperation with partners in industry, various levels of government, and environmental groups to facilitate the use of best practices to reduce environmental and social impacts of development. The BMP database is not intended to represent a consensus on what the best practices are for specific applications, nor to advise users on the current legal requirements for specific locations. Rather, it describes each practice and documents the source of the practice (who requires or recommends it in what specific applications) and links the user to the source document. Where possible, it provides supplemental information, including construction specifications, illustrations, pictures, maps, monitoring reports, cost-benefit analyses, and evaluations of the potential of the practice for mitigating impacts of development.

In addition to the searchable database, the website includes a variety of resources pages including applicable federal, state and local laws and regulations, an introduction to the oil and gas development process; and background information on air quality, water quality, wildlife, vegetation, reclamation; and GIS applications as they relate to oil and gas. A Community Resource page identifies tools for communities to work with industry and governments to maximize the benefits of development while controlling the impacts on their communities. A searchable bibliography, http://www.oilandgasbmps.org/bibliosearch.php, provides users with easy access to agency guidelines, environmental impact statements, scientific reports and many other documents on best management practices.

Database searches can help industry, environmental organizations, regulators, and concerned citizens identify and integrate appropriate practices into oil and gas operations. NRLC Project staff are available to help users with data queries and reports. They also welcome information from operators and consultants on innovative practices and technologies being implemented in the Intermountain West.

For more information on the project or to submit information (BMPs, critiques of BMPs or case studies) for addition to the database or website, contact Kathryn Mutz at kathryn.mutz@colorado.edu.

To view the article on Hart Energy's website, click here.

22-Apr-10 5:00 PM

Illinois Basin Shale Gets Tech Focus

Louise Durham — Wed, 14 Apr 2010 22:00:00 GMT

AAPG Explorer highlights RPSEA unconventional resources project New Albany Shale Gas in it's March 2010 issue. See below for the article. Following is an update from the principal investigator Iraj Salehi with the Gas Technology Institute.

Considerable media coverage about shale plays leads the uninitiated to think a shale is a shale is a shale.

Not so.

These dense rocks have characteristics that can vary not only from region to region but also within specific plays.

For example, even though natural fractures ordinarily are the principle conduit for production flow in shales, all fractures are not created equal. They vary in numerous ways, including intensity, distribution, size and porosity/occlusion patterns.

Actually, there’s no guarantee they even will be present.

The folks at Petrohawk, who discovered the still-new Eagle Ford shale gas play in south Texas (see January EXPLORER), haven’t yet seen any natural fracturing in the Eagle Ford core data after drilling a number of wells, according to AAPG member Dick Stoneburner, executive vice president and COO at the company.

The proliferation of domestic shale gas plays has come about through advanced technology, such as horizontal drilling techniques and increasingly efficient frac stimulation treatments, leading to more cost-effective production.

Technical Challenges

Economically exploiting these rocks, however, is not necessarily a slam-dunk.

An example is the New Albany Shale in the Illinois Basin, which is the focus of an ongoing R&D project under the aegis of the Gas Technology Institute. The field-based industry cooperative project is funded by the Research Partnership to Secure Energy for America (RPSEA).

The New Albany can vary significantly in different parts of the basin. The goal of the GTI research team is to develop techniques and methods to increase productivity of New Albany shale gas wells to a level where the otherwise non-commercial gas resource may become commercially viable, according to Kent Perry, executive director of GTI’s E&P research-supply sector.

Iraj Salehi, senior institute scientist at GTI, is at the helm of the project.

“We’re integrating all the necessary aspects of developing a shale resource into this project,” Perry said. “The New Albany Shale will require careful consideration of well drilling geometries, accurate formation characterization and completion practices to ensure optimum gas recovery.”

Production in the region dates back to the late 1800s when there was considerable oil exploration. Gas was detected as the drill bit passed through the shale, but early experimental attempts to harvest the gas were hindered by the excessively low shale permeability and other issues, according to Perry.

Gas-in-place estimates for the New Albany range from 90 to 160 Tcf, and technically recoverable volumes are estimated to range between 1.9 Tcf and 19.2 Tcf.

Still, the gas wells that have been drilled over the years have yielded limited quantities of gas.

“This combination of limited production and high volumes in place raises the question of why isn’t there more production,” said Perry, who noted “there’s a set of technically complex issues between the two.

“People aren’t sure how to frac, where to best locate the wells and so forth,” he added.

Two-Way Tech Transfer

The New Albany Shale occurs at surface outcrop and down to as much as 4,500 feet deep; both thermogenic and biogenic gas systems are present. Well costs for a horizontal well with hydraulic fracture stimulation range between $1 million and $1.8 million.

Production is primarily from natural fractures, and production in commercial quantities requires proper placement of horizontal wells relative to dominant fracture orientation. Owing to the extremely low matrix permeability and limited open natural fractures, interconnecting the fractures via hydraulic fracture stimulation is a must.

This can be a tedious task given that the New Albany is underlain by water-bearing Devonian rocks in some areas. Care must be taken to prevent the fractures from growing into the water-bearing zone.

“We’re now about a year into this project, and the team has conducted a couple of field experiments with partner operators in the area,” Perry said. “They’re looking at detailed core descriptions to better identify natural fracture patterns and formation evaluation issues to better control hydraulic fracture design.”

He noted there will be additional field tests to gather data for further study to try to resolve some of the production issues and others that are ongoing.

The project has the potential to benefit shale plays other than the New Albany.

“When we do a comprehensive study of this type, we’re always looking to see how far and wide the results might transfer to other geologic basins,” Perry emphasized. “Likewise, it’s been part of this project to take what learnings have taken place in the Barnett and other areas to see what might apply in this basin as well.

“It’s always a two-way tech transfer pathway that’s kind of ongoing,” he said, “just so we don’t duplicate efforts or reinvent things.”

Raising ‘the Curve’

It’s important to recognize that not all technologies applicable to shales translate to each shale.

For instance, the naturally fractured rock supporting biogenic gas generation in the New Albany isn’t readily similar to the other high-profile shale plays. Caution is necessary when attempting to transfer outside technologies to the New Albany.

Perry emphasized there are eight important areas that can contribute to a shale play’s success in different ways and varying quantitative values, and they should be investigated for every play. The importance of each of these can be different for each shale:

Organic richness.
Maturation.
Gas-in-place.
Permeability.
Pore pressure.
Brittleness.
Mineralogy.
Thickness.

A number of vertical wells have been drilled and fracture treated in the New Albany. Yet here as elsewhere, horizontal wells provide the opportunity to contact more natural fracture swarms and better contact the reservoir rock.

Initial gas production rates for a New Albany horizontal well with a 2,500-foot lateral are generally 275 mcf/d, declining to 100 mcf/d in the first 24 months. In fact, peak production volumes for these long-lived wells occur in the first 30 days, followed by a significant decline and then a shallow hyperbolic decline.

Cumulative estimated gas production over a 40-year period is one Bcf per well.

Initial high production rates followed by steep declines tend to be the rule for shale plays in general. As the New Albany demonstrates, post-decline production can continue for many years ultimately yielding significant volumes of gas.

Still, there’s room for improvement, and this is an industry comprised of folks noted for an almost uncanny talent for developing new technologies to overcome challenges.

The ongoing GTI effort is an example.

“We don’t think the results (of the project) will necessarily be to change that decline curve pattern, but to raise the whole curve,” Perry said. “Instead of initial production of maybe 200 mcf a day and declining rapidly, we might be able to get the initial rate up to 500 mcf a day and decline rapidly but then produce at a higher rate over that long period of time.

“The shape of the curve won’t change,” he said. “We’ll just lift it up a bit higher on the graph.”

Perry noted they are investigating optimum designs for fracture stimulation, along with the types of fluid to be used.

He added: “If we can stimulate more effectively on long horizontal wells and cut costs, then all of a sudden we could see a lot of activity in that shale.”

To view the actual article, click here.

Shahab D. Mohaghegh and Amirmasoud Kalantari with West Virginia University recently submitted a report as part of RPSEA’s Unconventional Resources Program, Project 07122-16. The report describes the impact of different reservoir characteristics, such as matrix porosity, matrix permeability, initial reservoir pressure and pay thickness, as well as the length of horizontal wells and their orientation relative to the dominant natural fracture system on gas production in the New Albany shale. The study utilized a publicly available numerical model specifically developed by the National Energy Technology Laboratory (NETL) to simulate gas production from naturally fractured reservoirs and analyze the variables and their effects on productivity. The study focuses on several New Albany Shale wells in western Kentucky.

Production from the wells was analyzed and history matched. During the history matching process, natural fracture length, density, orientation and fracture bedding of the New Albany Shale were modeled using information developed by the project, the Kentucky Geological Survey and the literature. Sensitivity analyses were performed on key reservoir parameters, natural fracture aperture, density and length to tune the model. The history-matched results of 87 New Albany shale wells were used for performing a novel integrated workflow.

Unlike traditional reservoir simulation and modeling, which begins from building a geo-cellular model, this model is a top-down, intelligent reservoir model that starts by analyzing the production data using traditional reservoir engineering techniques. These analyses were performed on individual wells in a multi-well New Albany shale gas reservoir in western Kentucky, that has a reasonable production history. Data-driven techniques were then used to develop single-well predictive models from the production history, the well logs and other available geologic and petrophysical data. The database created from the aforementioned analysis resulted in a large number of spatio-temporal snap shots of reservoir behavior.

Artificial intelligence and data mining techniques were subsequently applied to fuse all information into a cohesive reservoir model, which was calibrated (history matched) using the production history of the most recent set of wells drilled in the field. The calibrated reservoir model was then utilized for predictive purposes to identify the most effective field development strategies, including locations of infill wells, remaining reserves and under-performing wells. Capabilities of this new technique, ease of use and much shorter development and analysis time were demonstrated as compared to the traditional simulation and modeling in the study.

Although the New Albany Shale of the Illinois Basin has been estimated to contain approximately 86 TCF of natural gas in place, the full development of this potentially large resource has not yet occurred. The overall intent of the New Albany Shale Gas Project, which is led by the Gas Technology Institute, is to develop techniques and methodologies to improve the success rate and productivity of New Albany shale gas field wells so that they are economically commercial, thereby converting this potentially valuable resource into producible reserves. The two-year, $4.5 million project is due to be completed in the third quarter of 2010.

For more information, please contact:

GTI: Iraj Salehi, iraj.salehi@gastechnolgy.org, (847) 768-0902

Wes Virginia University: Shahab Mohaghegh, Shahab.Mohaghegh@mail.wvu.edu, (304) 293-3984

14-Apr-10 5:00 PM

Natural Gas: Fuel of the Future

Steve Hargreaves — Mon, 29 Mar 2010 15:00:00 GMT

The world seems awash in natural gas.

In the United States, new production from once hard-to-tap shale rock is booming in places like Texas, Louisiana and the Northeast. There are also plans to construct a mammoth gas pipeline through Canada to bring Alaskan North Slope gas to market.

In Australia and Qatar, liquefied natural gas terminals have started supplying fast-growing Asian countries, and more are under construction.

In Africa, rich natural gas deposits off the coast of Angola are slated for both the domestic market and export to Europe, which still gets a big part of its supply from Russia's huge reserves. Plans are also underway to supply both Europe and Asia with the sizable gas reserves in Iran and Iraq.

Forecasting agencies, long known to play it safe before touting new trends, are only predicting a modest increase in gas' share of the world's overall energy mix by 2030.

But some analysts are saying it could be much higher, with big implications for the electricity markets - and coal-fired power plants in particular.

How much do we have?

In the United States, it's this shale natural gas that's got everyone so excited.

This gas has been known about for some time, but new drilling and extraction technology has now made it commercially viable. There are some concerns over the environmental impact of this drilling, especially water pollution, but the sheer amount of new gas is getting major attention.

"We've basically won the lottery," Michael Ming, president of Research Partnership to Secure Energy for America, an organization that studies new natural gas developments, said during a recent Time Inc. conference on energy technologies.

The amount of gas reserves in these new shales could double the nation's known stockpile of natural gas, according to U.S. Geological Survey estimates.

Yet the U.S. Energy Information Administration is only forecasting a rise in natural gas production of under 20% by 2030. And as our overall energy use is expected to rise as well, natural gas' share of our overall energy mix will be little changed. EIA's estimates are in-line with other private forecasts.

Ming is among those who believe estimates for natural gas use are too small. He pointed to estimates from 10 years ago that said just 1 trillion cubic feet of natural gas was likely in Texas' Barnett Shale. That estimate is now 50 trillion cubic feet.

"There's a lot of conservatism right now," he said in an interview with CNNMoney. "We're just at the very tip of this pyramid."

What we use it for

Natural gas can be used for many things - to power cars, heat homes, cook, or generate electricity.

It's this last use that will likely represent the biggest opportunity for gas in the next couple of decades.

For the last several years utilities have scrapped plans to build coal-fired power plants in favor of natural gas plants, which emit about half the carbon dioxide, a major greenhouse gas. This move has become known in the power industry as the "dash to gas."

But that dash has been only half-hearted, said Peter Tertzakian, chief energy economist at ARC Financial, a Calgary-based private equity firm.

Over a decade ago utility execs were promised natural gas would be abundant and cheap. But the production didn't pan out as planned, and gas prices spiked even before oil prices did earlier this decade.

Prices have since dropped significantly, partially due to all the new shale gas, but utility execs are still leery this resource is for real.

'It's a question of believing," said Tertzakian, who also thinks the estimates for future natural gas use are low. "Once they believe the trend, gas demand is more likely to gain momentum."

One company that seems to believe is Exxon Mobil.

Late last year, Exxon (XOM, Fortune 500), the world's largest publicly traded oil company, paid $41 billion for XTO (XTO, Fortune 500), a natural gas company that primarily operates in the Untied States and is big player in the shale area.

Many analysts took Exxon's entry into this space as a sign that the shale gas boom is here to stay.

"They don't move fast and they aren't leading edge, but they don't make a lot of big mistakes," said Tommy Mann, global head of natural gas at the consulting firm Accenture. "If Exxon is looking at it, there must be something there."

What it changes

If natural gas use spreads substantially, its growth will likely be in the power sector.

While it can be used in cars, most analysts say that beyond use in busses or fleet vehicles that have set routes, the infrastructure really isn't there to support widespread use in cars. And the heating market is fairly well tapped.

But in making electricity, it could have real benefits. Ming, from Secure Energy, said that used in the most efficient power plants, natural gas is actually 70% cleaner than coal.

He is promoting an effort to replace the oldest, dirtiest 30% of the country's coal- fired power plants with natural gas, a move he says would shave almost 10% off the country's total greenhosue gas emissions.

Coal power plants will still exists, but impacts from cheap, widespread natural gas are clear.

"The real loser is coal," said Noel Tomny, head of global gas at the energy consultants Wood Mackenzie.

As for the environment, many say a move to natural gas is a good thing but doesn't replace the need to build more renewables and ultimately get fossil fuels out of the electricity generation business all together.

"Gas doesn't get us there," said Dave Hamilton, director for global warming and energy projects at the Sierra Club, referring to the 80% drop in emissions most scientists say are needed by 2050 to avoid the worst effects of global warming.

It may not get us there. But without huge advances in renewable energy, removing all fossil fuels from the electricity market will be a tough proposition. Gas may be the next best thing.

To view the article on CNNMoney's website, click here.

29-Mar-10 10:00 AM

RPSEA Board Member Castlen Kennedy Featured in Oil and Gas Investor

Susan Klann — Fri, 12 Mar 2010 20:00:00 GMT

RPSEA Board Member Castlen Kennedy, manager for governmental affairs for Apache Corporation, is featured in the Bright Spot of Oil and Gas Investor's February issue. Click the link below to view the entire spotlight of Castlen and her thoughts on RPSEA, energy policies, Apache Corporation and climate change.

Click here for the spotlight.

12-Mar-10 2:00 PM

A Comment: Natural Gas Can Lead the Way

Mark Zoback — Wed, 17 Feb 2010 01:00:00 GMT

RPSEA Board Member Dr. Mark Zoback with Stanford University wrote the Commentary in EARTH Magazine's February Edition.

Much of the debate concerning energy, climate and the economy involves how to manage the transition from fossil fuels to sustainable energy sources. In this context, it may seem ironic to promote one fossil fuel over another, but natural gas is an inexpensive, abundant and relatively clean fuel that can lead the transition away from coal and oil, while achieving significant reductions in greenhouse gas emissions and other pollutants over the next two decades. In short, increased use of domestic sources of natural gas needs to be an essential component of U.S. energy policy.

Please click here to view the entire article.

16-Feb-10 7:00 PM

Global Unconventional Gas 2010: Unlocking Your Potential

Diane Miller — Tue, 02 Feb 2010 21:00:00 GMT

Global Unconventional Gas 2010: Unlocking Your Potential is the world’s premier international conference and workshop designed to transfer knowledge and best practices gained in active unconventional gas plays to the rest of the world. Energy professionals and stakeholders will hear from the top U.S. and international experts about the enormous potential of gas shale and other unconventional gas resources across the globe and learn about the latest issues, approaches, processes and techniques key to unlocking the resources in their own countries. The conference will be held June 15-17 in Amsterdam, Netherlands.

GTI is pleased to announce that Aubrey K. McClendon, Chairman & CEO, Chesapeake Energy Corporation, will be speaking on the topic of enabling unconventional resource development and Dr. Abdul Rahim Hashim, President, IGU will address The International Gas Union perspective of a unified industry voice. Day One offers a broad perspective of the potential for unconventional gas in a sustainable global energy mix and the issues associated with resource development. Day Two is focused on five technical sessions that will deliver state of the art insights into unconventional gas resource development around the world, reviewing current and developing technology with a focus on gas shales. You can view the complete agenda by clicking here.

The Renaissance Amsterdam Hotel will host the group, with the conference sessions being held in the unique 17th century Koepelkerk, connected to the hotel. Hundreds of gas professionals from around the world are expected to attend. The conference will include several networking opportunities to meet and exchange ideas with others active in the unconventional gas area.

Registration is now open, with early discounts: $1495 if you register and pay by February 15; $1795 by April 15; and $1995 after April 15 and at the conference.

Make plans now to join the conference. View the conference website at www.gastechnology.org/gug2010 or e-mail gug2010@gastechnology.org for more information.

2-Feb-10 3:00 PM