Survive, Revive, Thrive: Chapter 4: Opening the Sails

2021 ◽  
Vol 73 (01) ◽  
pp. 8-9
Author(s):  
Tom Blasingame

Only put off until tomorrow what you are willing to die having left undone. - Pablo Picasso, Spanish painter/sculptor, 1881-1973 It’s Time To Look at the Horizon “Opening our sails” is a metaphor that the worst of the storm has passed or is passing, and it is time to get our-selves shipshape, making necessary repairs and preparations, and get back on course. As individuals, and certainly as SPE, we must be ready to cautiously open our sails. The pandemic may be at or near its peak, and despite relatively strong economic performance in most sec-tors, we know that the global economy remains fragile. As an industry, we don’t have the luxury of waiting. We must provide energy and feedstock in advance of global needs, so it is time to get busy and plan not for what was but for what will be. The energy map, meaning the needs, resources, economies, and priorities of the world, is changing. The oil and gas industry will continue to adapt, but as I have mentioned many times, the need for the service we provide is greater now than ever before. We need to be prepared for both increasing demand and public apathy for what we do. This is nothing new, and capital investments in oil and gas should begin to increase as we enter the new year. Perhaps not at the rates we saw during the “shale revolution,” but investors know how essential we are to a strong global economy and will act accordingly. I believe Picasso was right. We must develop the discipline to sacrifice for our passions completely, for what we are doing is too important to wait and too important to sleep. Person-ally, I have a compulsive need to serve and to create. The service part probably came from having older parents who came from, let’s say, very modest circumstances, and the creative part perhaps from the desire to take things apart and put them back together with the fewest possible parts left over. I mention this because each of us has an artist, a writer, an engineer, a doctor, and maybe even a mad scientist inside them. And each of us has our own compulsions. In the post-pandemic, we need to channel that same discipline that Picasso implies. Our passions are our compass, and our energy derives from our compulsion to fulfill those passions. My challenge to you, as an industry, is to align your passions. Someone recently told me that the pandemic had provided us the opportunity of a generation to realign our priorities. I believe it is the opportunity of a lifetime. We can choose to fear the future, or we can create it. It is that simple.

2020 ◽  
pp. 185-206
Author(s):  
Kenneth P. Miller

This chapter examines the deep Texas-California divide over energy and environmental policies. The modern Texas economy was built on energy, and the state remains the nation’s leading producer. The state’s development of fracking has revolutionized the oil and gas industry and has helped the nation break its dependence on foreign oil. Texas has also increased its production of renewable energy, but believes the global economy will rely for the foreseeable future on fossil fuels and resists restrictions on these resources. California, by contrast, has become a global leader in the fight against climate change. It has aggressively regulated carbon emissions and mandated a massive switch to renewable energy sources. California is the only state that can impose emissions regulations more strict than federal standards. As power has shifted in Washington, California has alternated between translating its environmental policies into federal law and defending its policies from federal challenge.


2020 ◽  
Vol 60 (2) ◽  
pp. 654
Author(s):  
Graeme Ross

Due to increasing demand for energy around the world, the prevalence of global megaprojects within the oil and gas industry is increasing. Process pipes, valves and vessels may be manufactured and coated in China or Korea, where labour costs are comparatively low, before being transported to the final project location, such as Western Australia. During the transport and fabrication phase, coated steelwork may spend months or even years exposed to harsh offshore or coastal environments before going into service. This means coatings must be able to provide protection throughout an extensive construction phase, in addition to the in-service lifetime of the steel. This paper examines the demands on high temperature performance coatings both before and once in service. Test methodology and exposure data are reviewed with a focus on how modern aluminium pigmented silicone coatings provide a solution to the corrosion challenges faced in global megaprojects.


Author(s):  
Ricardo de Lepeleire ◽  
Nicolas Rogozinski ◽  
Hank Rogers ◽  
Daniel Ferrari

Within the oil and gas industry, significant costs are often incurred by the operating company during the well-construction phase of drilling operations. Specifically, the operators cost to drill a well can cost tens or hundreds of millions of USD. One specific area where significant changes in drilling operations have occurred is in the offshore environment, specifically operations from mobile offshore drilling units (MODUs). With the ever-increasing demand for oil and gas, operators globally have increased drilling budgets in an effort to meet forecasted demand. However, the increased budgets are often eroded or offset by increasing drilling costs. Therefore, operators are continually in search of new technology, processes, or procedures to help improve drilling operations and overall operational efficiencies. One Latin America operator identified a common operation as a possible area where operational cost could be easily reduced through the implementation of systems that allow the manipulation of valve manifolds remotely. Additionally, operating such valve manifolds remotely enhanced operational safety for personnel, which was an equally important consideration. This paper details the evaluation of existing equipment and procedures and a process used to develop a new remote-control system using a machine logic control (MLC) that has been designed, built, tested, and deployed successfully on MODUs operating in Latin America.


2011 ◽  
Vol 51 (1) ◽  
pp. 147
Author(s):  
Ciaran Lavin ◽  
Terry Walker ◽  
Yvette Knowles

An uncertain global economy, offset by strong commodity prices, provided the backdrop to a subdued yet solid level of exploration activity in 2010. The major loci of activity in the Australian oil and gas industry were the Exmouth Plateau, where exploration for conventional gas in support of LNG projects was the primary driver, and the Bowen/Surat Basin, where coal seam gas (CSG) for LNG was the main target. Onshore permit awards dominated new licensing in 2010, with 31 exploration permits awarded over an area of 190,000 km2. The majority of these permits are focused on unconventional gas exploration. Conversely only 14 exploration permits (30,000 km) were awarded offshore, all in northwest Australia. This historically low level can be related to an already extensive coverage of existing permits in the offshore petroleum provinces and delays in the announcement of acreage awards from the 2009(II) acreage release. Twenty-nine 2D seismic surveys were started in 2010, with three still active at the end of the year. Once completed, the 2010 surveys will total nearly 37,000 km of data, with 76% offshore. Twenty-one 3D seismic surveys commenced in 2010, with six still active at year end. The 2010 surveys will ultimately comprise approximately 29,000 km2 of data, with 95% offshore. Northwest Australia dominated seismic activities. Exploration drilling for conventional hydrocarbon resources was relatively subdued in 2010, with 63 wells spudded, compared to 92 wells in 2008 and 74 in 2009. Of the 49 wildcat wells where results are known, 51% reported hydrocarbon discoveries. This was a little less than the 57% in 2009 and up on the 39% in 2008. The discoveries were distributed across most of the traditional petroleum provinces. High levels of CSG drilling continued in 2010, exceeding 2008 activity but less than that of 2009. At least 648 CSG wells were spudded in 2010, mostly in the new heartland plays of the Bowen/Surat, Gunnedah and Clarence-Moreton basins. This compares with more than 600 CSG wells drilled in 2008 and more than 900 in 2009. The first dedicated Australian shale gas exploration drilling took place in 2010. Emerging shale plays in the Cooper and Perth basins were tested.


2021 ◽  
Vol 73 (02) ◽  
pp. 8-9
Author(s):  
Tom Blasingame

The purpose of life is to discover your gift. The work of life is to develop it. The meaning of life is to give your gift away. - David S. Viscott, American psychiatrist Steering by the Stars History is a guide to navigation in perilous times. History is who we are and why we are the way we are. - David McCullough, American historian I recently read a “thought piece” in a major magazine that was a fictional account of how a new CEO would address his or her company’s employees while simultaneously restructuring the company’s units to deal with the pandemic. The fictitious CEO focused on prioritizing two things: treating the employees with respect while rewarding their loyalty and contributions and taking the necessary actions to maintain and improve engagement and sales for the company’s customers. This story is a reminder of the effect the pandemic has on businesses - all businesses. When the need to hire, utilize, and retain the very best talent is absolutely essential, do talented people really need to be micromanaged and endlessly evaluated? Or should we have the confidence to let them do their jobs? As I have mentioned in past columns, we (the big we - the oil and gas industry) will emerge leaner and a lot meaner when this storm finally passes. Employment, promotions, career mobility, and access to capital will become much more competitive. Our next generation, the students, need to understand and accept this. Young professionals need to realize that being a best-in-class performer may not be an option, and yes, layers of management will disappear as we rely on people to self-motivate and self-optimize their performance. We must also focus on what our customers want, namely energy security, diversity of access to energy, a lower-carbon future, and assurances that we are “walking the walk” on ESG issues. ESG stands for environmental, social, and corporate governance, in case you forgot. Each of these is both desirable and achievable - and need I restate that this is what our customers want? So how do we “steer by the stars?” Start with the obvious: If you can’t see the stars, you may want to wait until you do. Most importantly, this method works - crudely perhaps, and certainly not with the precision or reliability of GPS, but we aren’t trying to thread a needle. We are trying to ensure the significance of our industry and the livelihoods of our people. Understanding how to get where we need to be is the most essential element to getting there. We have the talent, technology, and infrastructure to provide a vital energy component. We need to make sure that we are “steering” toward our customers and toward a future where we continue to make a significant social and economic impact on the global economy.


2019 ◽  
Vol 2 (5) ◽  
pp. 138-146
Author(s):  
Irina Filimonova

The article carried out a comprehensive study and analyzed a set of indicators reflecting the performance of companies in the oil and gas industry in Russia, namely, the return on sales by net profit, the ratio of operating expenses (including tax payments), the tax burden, the ratio of revenue to hydrocarbon production, the ratio operating costs to production, the ratio of net profit to production, the coefficient of economic efficiency of capital investments. Thus, the purpose of this research was to assess the effectiveness of the oil and gas industry in Russia. The article based on the works of domestic and foreign scientists in the field of forecasting the world and Russian energy, general theoretical, macroeconomic, regional issues, including those related to the energy supply of the economy, the study of energy economics, energy efficiency, etc.


2021 ◽  
Vol 2 (11) ◽  
pp. 34-38
Author(s):  
Wang Hao ◽  

The global economy is more and more in need of energy resources, the alternatives of which are of increasing interest to the world community, while oil and gas production is becoming problematic due to the irrational development of developed and not yet exposed formations. Among the decisions of a confi-dent choice to suppress competitive rivalry for the industry and macroeconomics, they understand a balanced approach to invested capital and optimization of the activities of the operating units. Based on the above factors, the oil and gas industry will quickly master the digitalization of management and business processes. The article discusses the peculiarity of the influence and development of the digital economy of enterprises on the ability to reform the oil and gas industry.


Author(s):  
Raisa Azieva

New breakthrough technologies can have a positive or negative impact on the development of the fuel and energy sector. Therefore, the main thing is to evaluate technologies, analyze their suitability for the industry and determine priorities for future opportunities, i.e., identify technologies that provide new advantages for the energy world, and determine how, when and how their impact will become tangible. In this regard, researchers have determined that the innovative technology of the XXI century, recognized to transform the national and global economy is the blockchain technology. The article provides an overview of blockchain technology, defines the principles of its operation and possible applications, i.e., identifies the mechanism of action of the revolutionary system, as well as presents the players of the oil and gas industry to launch blockchain technology and identifies the advantages of innovative technology used in the oil and gas sector. It is determined that on the basis of the new technology, it is possible to create a single network for digitizing all interaction processes and automating them. The study also shows that the scope of application of blockchain in the oil and gas business is much broader, which determines the possibility of further consideration of a wide range of the need for the use of blockchain technology for the oil and gas industry, as well as its impact on the development of oil and gas companies.


2016 ◽  
Author(s):  
Alastair Lucas ◽  
Heather Lilles

As the “anti-frack” movement gains momentum in society and the media, the oil and gas industry is faced with increasing demand for public participation and consultation in hydraulic fracturing operations. In Alberta, public participation has taken a number of forms, occurring during both the regulatory process and hydraulic fracturing operations themselves. This article analyzes the adequacy of these public participation opportunities by outlining the current opportunities for participation and the Alberta Court of Appeal’s rulings regarding the adequacy of notification and consultation. Ultimately, the article concludes that despite a number of new regulatory initiatives, opportunities for public participation in hydraulic fracturing operations have not increased. However, the article remains optimistic that changes can and should occur, increasing opportunities for public participation and improving the timing and quality of such consultation.


2003 ◽  
Vol 43 (1) ◽  
pp. 665
Author(s):  
R.A. Hogarth

Modern corporate practices have been slow to come to grips with the risks of large capital expenditure projects, particularly the processes of due diligence on investment submissions and high level monitoring of project implementation.Unlike the mining sector where major project cost blowouts have received intense public scrutiny, collection of data on this issue is difficult in the oil and gas sector and there remains a reluctance of companies to share horror stories. The increasing trend towards company acquisitions rather than exploration, the rates of return on capital investments reported by oil and gas companies and the data available on this issue within the mining industry point towards a potential problem for the oil and gas industry and one that, with appropriate corporate practice could be more readily identified.This paper puts forward the case for more effective corporate practices in relation to large capital projects in optimising return on capital and discusses the role of project owner senior management and the key factors impacting on capital expenditure blowouts.Effective project due diligence, monitoring of project implementation and integration management are put forward as the three key focuses for Boards and management in ensuring that cost blowouts are avoided.


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