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Posts Tagged ‘research’

Chevron slide: Advances in seismic imaging help characterize deepwater development opportunities

A new JPT article features comments from BOE contributor Lars Herbst on advances in HPHT technology, control systems, sensors and transmitters, and automation that are facilitating the next era of deepwater development.

Well capping technology, which provides a tertiary well control capability, is an essential element of post-Macondo exploration and development. Lars points to the importance of BSEE’s unannounced drill program to verify that capping stacks can be transported and installed in a timely manner. Chevron expresses pride in leading a team that deployed and installed a capping stack in 6,200 feet of water in a drill monitored by BSEE. During that drill, a remotely operated vehicle (ROV) closed 10 valves to shut in a simulated well.

Exxon’s Jayme Meier aptly characterizes the challenge and excitement of deepwater development:

“You are floating on a surface, and you have to be able to pinpoint exactly where you’re going to land subsea hardware, exactly where you’re going to moor an FPSO and hit target boxes that are a few feet by a few feet, and they’re 6,000 ft below you,” she said. “It is the most exciting thing that I’ve ever been involved in. And it involves technology, technical know-how, and an ability to really plan the base plan and the contingency plan.”

Advances in deepwater technology are indeed impressive, but continuous improvement must always be the objective. In that regard, Lars rightfully emphasizes the importance of sustaining research through the industry’s up and down cycles.

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Chapter 6

Good Woods Hole Oceanographic Institute videos about their participation in the Deepwater Horizon scientific effort. 

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With its acquisition of Pride, Ensco is about to become the worlds second largest drilling contractor (behind only Transocean). Further consolidation and a drilling boom are being predicted by giddy reporters.

Good luck to Ensco and Pride.  I hope the merger serves them well. My comments are not about them, but about the broader implications of oil and gas industry mergers.

  1. Mergers reduce diversity. When two companies merge or are acquired, two opinions become one. The industry loses some of the diversity of thought that is so important in managing safety and environmental risks. There is no single perfect approach to conducting operations, and differences among companies lead to better operations throughout the industry.
  2. Mergers reduce the number of participants in standards development and conferences.  Standards meetings no longer include representatives from Mobil, Amoco, Arco, Getty, Gulf, Texaco, Superior, Pennzoil, Sohio, and other successful companies that have been acquired over the past 30 years. Mergers among contractors, most notably in the drilling industry, and service companies have further reduced participation.
  3. Cuts in combined research are among the “efficiencies” that can be achieved through mergers. When companies merge, research budgets seldom grow, and often decline.

New and expanding independent producers could fill the voids, but these companies tend to be less involved in industry-wide programs and projects. This needs to change and there are some encouraging signs.

There is a lot on the offshore industry’s plate right now including cooperative risk-management programs and a long list of standards projects. Hopefully, everyone will be able to maintain their focus on those needs, and the merger-mania will not be too much of a distraction.

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