APRIL 2020

Reservoir
Characterization
Deepwater Rig
Advances
Fracture Fluids
Artificial Lift
Subsea Processing
and Production

Unconventional
Report:
Rockies and Bakken

Keeping
Faith
the

Ingenuity and
innovation delivering
steady growth in the
Gulf of Mexico
 EXPLORATION & PRODUCTION APRI L 2020
VOLUME 93 ISSUE 04
WORLDWIDE COVERAGE ■

A H A R T E N E R G Y P UBLIC AT ION www.HartEnergy.com

RESERVOIR CHARACTERIZATION COVER STORY: GULF OF MEXICO

32 Gaining illumination through

20
seismic evolution
Keeping the
DEEPWATER RIG ADVANCES faith
36 Advanced technology improves safety,
operational efficiency

FRACTURE FLUIDS
40 Stimulation fluid additives for the
next cycle

44 Friction reduction with sand transport

ARTIFICIAL LIFT
46 Optimizing lift for small-diameter wells

50 More production, less intervention

SUBSEA PROCESSING & PRODUCTION

54 Shining a light on the entire well

56 Expansion of subsea operations

with pipeline bundling

78
UNCONVENTIONAL REPORT:
ROCKIES & BAKKEN

INDUSTRY PULSE

8 New trade deal, pipelines

favorable for US-Mexico
energy trade

WORLD VIEW

10 The role of the industry in

the energy transition
 DEPARTMENTS AND COMMENTARY

AS I SEE IT
Early innings 7

MARKET INTELLIGENCE
Whither rig count? 14

COMPLETIONS & PRODUCTION

Refracs emerging as an option for growing production 16

OFFSHORE ADVANCES
Catching carbon 18

DIGITAL SOLUTIONS
How smart solutions can resolve the industry’s methane leak woes 58

OPERATOR SOLUTIONS
Onward and upward: cloud geoscience databases for the new decade 62
Transforming operations with additive manufacturing 66

SHALE SOLUTIONS
Getting to the bottom of extended-reach lateral challenges 70

OFFSHORE SOLUTIONS
‘Must-have’ outweighing the ‘nice-to-have’ options 72

TECH WATCH
Ceramic microproppants increasing productivity 74

TECH TRENDS 80

INTERNATIONAL HIGHLIGHTS 84

ON THE MOVE/INDEX TO ADVERTISERS 86-87

LAST WORD
Increasing versatility of drones expands opportunities for data capture 88

COMING SOON The next issue of E&P will focus on well integrity and completions.
Other features will cover frontier exploration, drilling advances, pressure pumping, pro-
duction logging, and decommissioning and disposal. This edition also will feature a
special report on emissions management. As always, while you’re waiting for your next
copy of E&P, be sure to visit HartEnergy.com for the latest news, industry updates and
unique industry analysis.

ABOUT THE COVER A 3D rendering depicts the Anchor FPU that is

planned for the Chevron-operated Anchor Field in the Gulf of Mexico.
Left, although oil and gas production in the Rockies and Bakken
regions has slowed due to takeaway capacity constraints, planned
pipeline expansion projects and favorable economics brighten the
region’s future. (Cover image courtesy of Wood; Left photo courtesy of
Mavrick/Shutterstock.com; Cover design by Felicia Hammons)

E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057.
Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149; 2 years (24 issues), US $279.
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 ONLINE CONTENT APRIL 2020

AVAILABLE ONLY ONLINE Subscribe at HartEnergy.com/subscribe

Artificial lift system eliminates downhole equipment for

unconventional wells
By Mary Holcomb, Associate Editor
The new method developed by Lift Well International uses the co-injection
of gas and liquids to perform the actual artificial lift, removing downhole
equipment from the equation.
Differing approaches to optimizing Permian well spacing
By Faiza Rizvi, Associate Editor
Enverus analysts say major operators in the Permian Basin are optimizing
spacing strategies in pursuit of increasing well productivity.
ESG and energy
By Chris Sheehan, Senior Financial Analyst, Oil and Gas Investor
Some say broader environmental, social and governance (ESG) measures
are necessary in support of a global decarbonization campaign.
Climate emergency dominates London’s oil week
By Anna Kachkova, Contributing Editor
Discussions at this year’s IP Week, including from the International Energy
Agency’s Fatih Birol, illustrated the increasing sense of urgency among the
oil and gas industry in addressing climate issues.
Oil, gas industry players eye next ‘super basin’
By Velda Addison, Group Senior Editor
Which areas could follow Guyana, Mauritania/Senegal and Mozambique’s
Rovuma Basin? Exploration took center stage during the recently held
Global Super Basins Leadership Conference.

VIDEOS:
n Executive Q&A: Hess’ Bakken outlook for 2020
Dougie McMichael, director of Bakken well factory planning and execu-
tion at Hess, expands on the company’s productivity and the technology
drivers in the play.

By Jessica Morales, Video Reporter, Digital News Group

Hart Energy’s 25 Influential

Women In Energy Luncheon
n Oil, gas industry players talk diversity, building
from within
By Velda Addison, Group Senior Editor
Diversity in the workforce is being championed to not only help bring in
more qualified workers but also bring diverse perspectives and voices to
the oil and gas industry, according to panelists speaking during the pre-
luncheon forum on March 4.

n Empowering women in the oil and gas industry

By Faiza Rizvi, Associate Editor
Female executives in the oil and gas industry are challenging norms and
inspiring young professionals to follow their footsteps, as witnessed during
the pre-luncheon forum.
Read the 25 Influential Women In Energy profiles at hartenergy
conferences.com/women-in-energy and view one-on-one video
interviews with the honorees at hartenergy.com/videos.
 As I
1616 S. VOSS ROAD, STE 1000 JENNIFER PRESLEY SEE IT
HOUSTON, TEXAS 77057 Executive Editor
P: +1 713.260.6400 F: +1 713.840.0923
HartEnergy.com
jpresley@hartenergy.com

Editorial Director LEN VERMILLION Read more commentary at

Executive Editor JENNIFER PRESLEY HartEnergy.com
Chief Technical Director RICHARD MASON

Group Senior Editor VELDA ADDISON

Senior Editor BRIAN WALZEL

Early innings
Associate Editor FAIZA RIZVI

Activity Editor, LARRY PRADO

Digital News Group
Managing Editor, Print Media JO ANN DAVY
Increased investment in and the deployment of carbon capture
Senior Managing Editor,
Print Media ARIANA HURTADO technologies are needed to further the energy transition.
Creative Director ALEXA SANDERS

Senior Graphic Designer

Publisher
FELICIA HAMMONS

DARRIN WEST
A merican kids learn early that to accomplish something really important—
like hitting a homerun in a baseball game—they need to “keep their eye
on the ball.” But what if there are two balls coming at them? How does one
Editorial Advisory Board weigh the pros and the cons when both challenges are of equal importance?
Take global population and climate change, for example.
CHRIS BARTON
Wood Today’s global population sits at about 7.5 billion people, according to the
U.N. It is a figure that is expected to grow by about 1.5 billion in the next 20
KEVIN BRADY
Highway 9 Consulting years, reaching about 9.2 billion in 2040. In that same span of time, many
long-term outlooks forecast a 25% to 30% increase in global energy demand
MIKE FORREST
and increases in greenhouse-gas (GHG) emissions.
Consultant
But a central goal of the 2015 Paris Climate Agreement is to keep the global
GARRETT FRAZIER temperature rise to below 2.7 F pre-industrial levels. To do that requires the
Magnum Oil Tools
reduction of GHG emissions by shifting toward cleaner energy sources like
RICHARD “DICK” GHISELIN, P.E. solar and wind. More than 190 countries signed the agreement and commit-
Qittitut Consulting LLC
ted to enacting goals to achieve net-zero carbon emissions by 2050.
PETER LOVIE Replacing fossil energy with renewable energy to reduce CO2 emissions is
Peter M Lovie PE LLC only half the battle. Capturing carbon as it flows out of power plant smoke-
ERIC NAMTVEDT stacks and then using it for industrial applications or storing it is the other
Namtvedt Energy Advisors half. According to the International Energy Agency, industrial production
DONALD PAUL accounts for one-quarter of CO2 emissions from energy and industrial pro-
USC cesses, and 40% of global energy demand.
KEITH RAPPOLD In December 2019, the National Petroleum Council, an oil and natural gas
Aramco Services advisory committee to the U.S. Secretary of Energy, released the results of its
two-year study on the actions needed to deploy commercial carbon capture,
EVE SPRUNT
Consultant use and storage (CCUS) technologies at scale in the U.S. In “Meeting the
Dual Challenge: A Roadmap to At-Scale Deployment of Carbon Capture, Use
SCOTT WEEDEN
Consultant and Storage,” the council found that as populations and economies continue
to prosper, the world faces a dual challenge of providing affordable, reliable
TOM WILLIAMS
energy while addressing the risk of climate change.
RPSEA
Widespread deployment of CCUS is essential to meeting this dual challenge
at the lowest cost, according to the report. The U.S. currently uses about 80%
of the world’s carbon capture capacity. However, the 25 million tonnes per
annum of CCUS capacity represents less than 1% of the country’s CO2 emis-
Senior Vice President, Media sions from stationary sources, according to the report.
E&P/Conferences
RUSSELL LAAS
In reducing emissions, we’ve put significant focus on renewable energies.
Now it is time to focus on the second target—capturing
Vice President of Content and storing CO2 from industrial sources.
PEGGY WILLIAMS

Chief Financial Officer

CHRIS ARNDT

Chief Executive Officer

RICHARD A. EICHLER 7
industry
PULSE
New trade deal, pipelines favorable
for US-Mexico energy trade
A revised tripartite trade agreement and new pipelines scheduled to go into service could
further boost the flow of U.S. energy to Mexico.
Faiza Rizvi, Associate Editor
F or several years, energy trade between the U.S. and
Mexico has been beneficial on both sides of the
border. Following the U.S. shale revolution, there has
been a significant increase in U.S. natural gas exports
to Mexico, where the cleaner-burning fuel has become
an important source of energy, particularly for electric
power and industrial development.
LNG was first exported from Lower 48 states to
Mexico in 2016, and Mexico has been a major importer
of U.S. LNG ever since. According to industry reports,
U.S. natural gas exports to Mexico totaled 1.8 Tcf
in 2018, out of which 90% was transported through
pipelines. In addition, the Energy Information
Administration (EIA) forecasts U.S. natural gas exports
will exceed imports by an average of 7.3 Bcf/d in 2020,
which is 2 Bcf/d higher than last year, according to the
EIA’s Short-term Energy Outlook released in January.
Since its enactment in 1994, the North American
Free Trade Agreement (NAFTA) has been a critical
component of the flow of energy between the U.S. and
Mexico, recording growth in U.S. natural gas exports to
Mexico from about 50 Bcf in 1994 to 1.7 Tcf in 2018.
Due to significant political, social and market changes
over the years, the governments of the U.S., Canada and
Mexico negotiated the U.S.-Mexico-Canada Agreement
(USMCA), which is a renegotiation of NAFTA. In January
2020, President Donald Trump signed the USMCA, which
is expected to improve the U.S. economy, raising GDP by
$68 billion and employment by 176,000 jobs.
Although the USMCA will not bring any drastic
changes to the energy sector, the trade agreement will
facilitate the movement of hydrocarbons through pipe-
lines, Andrew Shoyer, leader of global arbitration, trade
and advocacy energy at Sidney Austin LLP, told E&P.
Highlighting the new trade deal’s benefits, Shoyer
pointed out one of the long-standing issues of NAFTA
that negotiators fixed in the revised agreement. The
issue is that the USMCA will “allow hydrocarbons
transported through pipelines to qualify as originating,
8 April 2020 | E&P | HartEnergy.com
which means they will get the benefit of USMCA’s zero
tariffs provided that any diluent—regardless of origin—
doesn’t constitute more than 40% of the volume of the
good. That should allow more hydrocarbons to flow
through pipelines across the borders in North America
to benefit from lower tariffs,” he said.
He explained that the USMCA offers greater flexibility
for origin certification requirements for traded oil and
gas products. The new trade deal also streamlines the
regulatory process for U.S. LNG exports to Mexico and
Canada, including automatic export approvals, which
were locked in the USMCA.
Shoyer added, “The U.S. government has touted that
the USMCA will essentially freeze in place Mexico’s
energy reforms, which have been significant over the
past few years, converting what had been Mexico’s uni-
lateral choices into treaty obligations.”
Despite offering several benefits, the new agree-
ment has scaled back protections for foreign direct
investment compared to NAFTA. Companies that are
looking for E&P investments in Mexico are facing
some uncertainty. Once the USMCA goes into effect,
investors in Mexico and the U.S. will still have access to
investor-state arbitration but under limitations and with
heightened domestic remedy requirements.
“Although the USMCA does not limit U.S. investors will-
ing to invest in the Mexican energy market, it does appear
to limit the recourse that U.S. investors would have to
enforce in international arbitration, at least in comparison
to what currently exists under NAFTA,” Shoyer said.
He said there is still a long way to go before the new
trade deal formally goes into effect, even though the
USMCA deal has been passed by the U.S. Congress and
signed by the president.
“Once all three countries have gone through the
round domestic ratification process, they will notify
each other of the formal exchange and will go in force
a couple of months after the notification process. It is
highly likely the agreement will go into force at some
point this year,” Shoyer said.
Currently, Mexico imports more than 70% of its gas
needs from abroad, and more than 90% of those

purchases come from the U.S., which is a boon for U.S.
exporters. In a January statement, Mexican President
Andrés Manuel López Obrador said it would be a long
time before Mexico can produce enough natural gas
to attain self-sufficiency and, until then, the country
will continue to rely on imports. The EIA forecasts that
U.S. deliveries to LNG export facilities and by pipelines
to Mexico will account for an increasingly larger share
over the next two years, as new LNG facilities are placed
in service and new pipelines in Mexico that connect to
U.S. export pipelines begin operations.
The development of the pipeline network for natural
gas in the U.S. and Mexico has been duly expanded
over the last several years, with several pipelines com-
ing into service in both countries, according to Ken
Irvin, co-leader of the global energy practice at Sidney
Austin LLP.
For instance, the 168-mile Valley Crossing Pipeline
is now able to flow gas to points south in Mexico after
delays in the downstream pipelines. Valley Crossing
HartEnergy.com | E&P | April 2020
industry
PULSE
Pipeline connects with the 450-mile Sur de Texas-
Tuxpan Pipeline, which recently began commercial
operations in Mexico. Together, these pipelines have
increased the flow of natural gas from the Eagle Ford
and Permian to south of the border in Mexico.
With service now flowing north and south of the
border, the Valley Crossing Pipeline will transport nat-
ural gas to Mexico from the Agua Dulce near Corpus
Christi, Texas. The Valley Crossing Pipeline has a
capacity of 2.6 Bcf/d. Upon completion of all the
downstream pipelines, it will be the largest natural gas
pipeline that flows from the U.S. to Mexico. Irvin added
that several new pipelines in Mexico that connect the
West Texas area have entered service and are expected
to ramp up service in the near term as the downstream
pipeline network is built out.
“Everyone benefits from using gas instead of oil. So in
the long term, I would expect the market to be enthusi-
astic about building pipelines and infrastructure for
delivering natural gas to Mexico,” he said.
9
world
VIEW
The role of the oil and gas industry in
the energy transition
The regional director of the IOGP discusses the association’s role in a changing
upstream environment.
Brian Walzel, Senior Editor
T he International Association of Oil & Gas Produc-
ers (IOGP) describes itself as the voice of the global
upstream industry. Its members produce 40% of the
world’s oil and gas and operate around the world in
places like the Americas, Africa, Europe, the Middle
East, Asia and Australia. According to the associa-
tion’s website, the IOGP serves industry regulators as
a global partner for improving safety, environmental
and social performance.
The IOGP provides as a forum in which its mem-
bers identify and share knowledge and best practices
to achieve improvements across different facets of
the industry. The association has 84 members, includ-
ing leading global producers and many industry
trade associations.
In January 2019, the IOGP appointed Wafik Beydoun
as its new regional director—Americas. Beydoun has
more than 30 years of experience in the upstream oil and
gas sector, most recently serving as Total’s general man-
ager and country chair in Kuwait. He’s a former chair of
the Offshore Technology Conference. He has held a vari-
ety of leadership and technical positions in the U.S., the
U.K., France, Angola and the United Arab Emirates.
Beydoun talked with E&P in March in an exclusive
interview about his views on the current state of the
global oil and gas industry, particularly in the era of
essential discussions on the role of the industry in the
energy transition and with regard to climate change.
E&P: What is your perspective on the current global
energy demand, and how it will impact the industry
considering the current commodity prices?
Beydoun: Until recently, global demand for oil and gas
was at its highest level ever, with particularly dramatic
growth in Africa, Asia-Pacific, the Middle East and the
Americas. Global oil demand in 2018 was 30% higher
than it was in 2000, and natural gas demand increased
even more dramatically by 60%. The expectation for this
10
year was to get somewhere around
100 million barrels of oil per day,
and it appears that we are for now
within 1% of this target. But we
haven’t seen yet the extent of the
latest developments, such as the
impact of COVID-19.
E&P: What are the emerging
regions for oil and gas produc-
Wafik Beydoun tion that you believe will push the
industry forward?
Beydoun: Regions like Africa, Asia-Pacific, the Middle
East and the Americas have been quite successful in dis-
covering big fields. Those places are opening new bases
for exploration.
In 2020 there will be a 4% increase in capex invest-
ment in the upstream industry, which is about $219
billion. In terms of drilling wildcats in 2020, there are
about 500 to 600 wildcats that are going to be com-
pleted worldwide. So it looks for now at least like 2020
is a slight upgrade to 2019 in terms of that kind of
opportunity to discover, appraise, develop and produce
for the industry. But again, this does not yet reflect the
latest developments.
E&P: How does the industry work to alleviate concerns
over climate change and serve as a positive voice in
these conversations?
Beydoun: There are tangible efforts and engagement
by the industry to address these concerns. Looking at
these from three angles can help illustrate what actions
are being taken. Firstly, from the IOGP’s perspective,
we welcome the Paris Agreement and support the
international community’s commitment to address
the global challenge of climate change. We believe
the oil and gas industry is part of the solution to this
challenge. Secondly, as an industry, we need to demon-
strate that we are working hard to reduce the emissions
in our own operations and build more exposure to
April 2020 | E&P | HartEnergy.com
 world
VIEW

gas for power generation, and bringing in their experts

with more oil for petrochem- “The oil and gas industry is part to arrive at these recom-
ical feedstock because this
demand is increasing. Lastly,
of the solution to the climate mended practices. It can take
years to develop these prac-
building alliances among change challenge, and tices, and once we have one,
trade associations and pro- building alliances among the industry is willing to try
fessional societies, like IOGP, to apply it, and that increases
is key to making our voice trade associations and profes- industrywide standardization.
heard and enabling more sional societies, like IOGP, is key Because of our expertise, we
inclusive and coherent con- also act as advisers to industry
versations with stakeholders.
to making our voice heard.” regulators and are in a posi-
—Wafik Beydoun, IOGP tion to share the benefit of
E&P: What are some of the our experience with them.
IOGP’s goals and recent The IOGP’s Life-Saving
accomplishments? Rules are a good recent example of how trade associations
can support improvements in performance in critical
Beydoun: As the voice of the global upstream industry, areas across the industry. Companies derive significant
the IOGP is unique in terms of associations. A lot of our benefit from this work, which can save lives. The nine
recommended practices are coming from what we call rules protect workers in the industry all over the world.
the ‘sweat equity’ of our members who are contributing It’s important, because a high proportion of the industry’s

HartEnergy.com | E&P | April 2020 11

world
VIEW

Also, this year we are launch-

ing a few new joint industry
projects. One of them is on envi-
ronmental genomics research,
which is aimed at exploring the
application of environmental
DNA-based analysis to enable
more complete cost-effective
and faster environmental assess-
ment and monitoring of oil and
gas operations.

E&P: Since you were appointed

(Source: IOGP)
workforce are contractors, and it’s widely recognized that
having a standard set of rules across the industry makes a
big difference to those who may work for multiple com-
panies with different safety rules. The rules are designed
for the front-line workforce and are based on analysis of
data shared by IOGP members, which included details
of thousands of incidents, many fatal, over 19 years. The
data showed that by following these simple rules about
70% of these fatalities (more than 1,000) could have been
prevented. The rules are available in 13 languages, and we
have a short YouTube video on each one.
E&P: What are some of the IOGP’s priorities this year?
Beydoun: Our top priorities remain safety and the
environment. In that vein, two big projects for this year
are our analysis of the methods and requirements for
recording methane emissions as well as a campaign on
reducing driver fatigue.
as regional director last year,
what have been some of your
priorities and how have you put
those into action?
Beydoun: My priorities are twofold. Firstly, share
IOGP practices with the stakeholders in the Americas
region, including associations and professional societ-
ies in the U.S. The second is to collaborate closely
with some of these associations, starting with the API.
We signed a memorandum of understanding with
the API in June 2019 to work together and share our
practices in the Americas region, like in Brazil, Argen-
tina, Mexico, Colombia and Guyana. In these coun-
tries, we are jointly meeting with authorities and their
respective national industry associations to establish a
conversation on how to effectively use standards and
best practices for improving safety, environmental
and social performance. Building such alliances with
other trade associations and professional societies
not only aligns our individual messages but also
enhances our collective credibility when sharing data
and best practices.

Fatalities & 5,000,000 120

Number of work hours (millions)

workhours 4,000,000 100

in the IOGP 3,000,000

80
Fatalities

database 2,000,000
60

Hours company thousands 40

Hours contractor thousands 1,000,000

20
Total company fatalities
0 0
Total contractor fatalities
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(Source: IOGP)

12 April 2020 | E&P | HartEnergy.com

 market
INTELLIGENCE

Whither rig count?

Efficiency means the industry needs fewer rigs while macroeconomics suggest oilfield
service activity will be much lower in 2020.

The main problem with energy forecasting

Richard Mason, Chief Technical Director remains the uncertainty factor as the industry
learned in March when the sector entered “the déjà

D own 4%, down 8% and down 9%. Those are the

last three quarterly averages for Hart Energy’s 2019
U.S. unconventional rig count. Had all gone well, and
vu all over again”’ phase of the oil and gas price
cycle. A coronavirus-inspired decline in oil prices
morphed into a global war for market share, which
if one ignored sub-$50 oil prices, U.S. unconventional will last longer than the weeklong price boost after
rig count was forecast (as of press time) to finish flat in the Iranian assassination and the two-week price
the first quarter of 2020. For the “glass half full” crowd, boost following the attack on Aramco facilities last
a flat average rig count would have been good news. fall. Now the wild card is how fast excess global
Maybe, just maybe, oil service sector carnage had estab- crude supply will take to succumb to a market share
lished a painful bottom. war in the face of declining global demand.
Granted, the current field activity storyline involved There was little indication that the U.S. E&P sector
improved efficiency, deflating service prices and for- had planned to attack the original problem, which
tuitous E&P hedging that underpinned some drilling was production volume growth. Spending less while
programs, especially in the Permian Basin. continuing to grow made great press releases but kept
Unfortunately, that combination created forecast- Wall Street financing on the sidelines. If one uses
ing hazards. The original challenge for 2020 was, natural gas producers as a yardstick, nothing provides
of course, the 10% to 15% the discipline to stop excessive
pre-coronavirus decline in Fears of a pandemic and a production until commodity
aggregate E&P capital spend- global crude oil war over prices fall low enough long
ing. Furthermore, with ser- market share may cut U.S. E&P enough to restrict capex to
vice sector lines working on a capex by 25% in 2020. maintenance production only.
cash basis only, it was unreal- What will the bottom look
istic to expect additional size- like? Tudor Pickering Holt &
able service cost deflation. The E&P sector was con- Co. rig count metrics had shown large-cap E&P com-
suming the oil service industry and its equipment, panies up five units in the first quarter of 2020 versus
which was long-term unsustainable, especially if one a 25-unit decline in the fourth quarter of 2019. Large
bought the old thesis that production was destined caps comprise 25% of the market. Similarly, small and
to roll over in the face of increasing global demand. mid caps were up 19 units versus an 18-unit decline in
That theory held that the sky would become the the fourth quarter of 2019. This cohort is 22% of the
limit on an activity recovery because oil service activ- market. Big oil rose two units versus a 17-unit decline
ity tracks commodity prices. previously. But big oil is just 14% of the market. The
How real was that storyline in retrospect? rig count story year to date had been the 60-unit
Drilling efficiency gains stemmed from the con- decline in rig employment among privately held E&P
version to pad drilling, suggesting the industry companies. This followed a 61-unit decline in the
was entering a period of incremental improve- fourth quarter of 2019. Privates comprise 38% of drill-
ment only versus traditional metrics such as spud ing customers, down from 42% one year ago. Soon
to spud. Drilling contractors can bore hole even the public companies will join the privates in activity
faster as the industry moves to infill drilling of reduction. “From Russia With Love” is a wildcard
less productive child wells, but fast drilling and that will halt U.S. E&P share buybacks and dividend
quality horizontal wellbores often prove to be oxy- increases as free cash flow evaporates in a capex envi-
moronic when the wells are turned over to the pro- ronment that could fall 25% in 2020.
duction engineers. Recovery? It may be time to think 2022.

14 April 2020 | E&P | HartEnergy.com

 completions &
PRODUCTION

Refracs emerging as an option for

growing production
With cost constraints limiting new development, operators are finding value in revisiting
understimulated wells.

C ompletion designs have rapidly evolved over

the past few years, serving as one of the drivers
behind the exponential production growth of U.S.
BRIAN WALZEL
Senior Editor
shale. However, the brisk evolution of those designs bwalzel@hartenergy.com
has resulted in scores of unconventional wells com-
pleted with outdated techniques and inferior fracture Read more commentary at
intensity, which subsequently has led to unrecov- HartEnergy.com
ered—but certainly accessible—hydrocarbons.
Meanwhile, the oil and gas industry presently finds
itself in a bit of a fix. Investors are demanding operators process also was more operationally challenging than
be cash flow positive, but they also want to see produc- completing a new well. Perhaps more importantly,
tion growth. How can operators improve their produc- Devon also discovered that refracs, for about 60% of
tion amounts while also curbing activity to shave costs? the cost, can compete economically with drilling new
There are likely many answers to that question, but one wells and enhance field development.
could be well refractures. However, not all understim-
Refracturing a well is a risk/ ulated wells are candidates for
reward proposition, as some in refracs. For example, Devon
the industry have discovered. found that one refrac candi-
At the February SPE Hydraulic “The wells that have date was not selected after
Fracturing Technology Con- been executed a poor pressure test. Akash
ference and Exhibition, Devon Sharma, an Enverus analyst,
Energy’s John Bennett pre- successfully have explained in a paper evalu-
sented a paper on the results of exceeded return on ating refracs in legacy shale
his company testing a set of 15 plays, presented at the 2019
liner refracs on wells that were
investment expectations.” SPE Eastern Regional Meeting,
understimulated in their Eagle —John Bennett, Devon Energy that operators can evaluate
Ford operations. refrac candidates based on key
Of the 15 wells that were performance indicators (KPIs)
refractured, three suffered such as petrophysical parame-
operational issues, with one ters, initial completion design,
well having been lost completely, Bennett reported. chemical composition and formation quality, among
However, wells that were successfully refractured saw others, to quantify the impact on refrac KPIs such as
EUR increases of between 22% and 65% and up to a IP ratio, EUR ratio and decline trend impact.
20-time increase in production rate. Well refractures are nothing new to the U.S.
“Dramatic increases in pressure and production shale industry, having been a tool in the toolbox
have been observed on the liner refracs,” Bennett for as long as wells have been fracked. But with
wrote in the study. “The wells that have been exe- modern completion designs having outpaced leg-
cuted successfully have exceeded return on invest- acy well designs, and with operators
ment expectations.” looking for ways to maximize value,
Devon found that successful refracs can access previ- refractures may well be on the cusp
ously untapped portions of the reservoir, but that the of breaking new ground.

16 April 2020 | E&P | HartEnergy.com

 offshore
ADVANCES

Catching carbon
A full-scale CCS project in the North Sea takes another step closer to a final
investment decision.

JENNIFER PRESLEY
C atching CO2 is not a new idea in the oil and gas
industry. We’ve been putting the fizz back in
wells since 1972 with the first commercial CO2 flood
Executive Editor
jpresley@hartenergy.com
that occurred in Scurry County, Texas, at the SAC-
Read more commentary at
ROC Unit. It is a field still in operation today.
The enabling technologies of CO2 EOR, and those HartEnergy.com
of carbon capture and storage (CCS), have evolved
tremendously in the more than 45 years since SAC-
ROC. However, there is still more to be done to make One way CCS projects in Europe have evolved
it useful in larger-scale applications. over the years is in how the projects are planned.
According to the Global CCS Institute, more than Rather than building full chain solutions for a single
260 million tonnes (MMtonnes) of CO2 emissions emission source, there are hubs and clusters. For
from human activity have been captured and stored. example, the Norwegian Full-Scale Project will cap-
Global CCS projects operating or under construction ture CO2 at two industrial facilities on the eastern
have about 40 million tonnes per annum (mtpa) of coast of Norway and then transport the liquefied
capture and storage capacity. and pressurized CO2 by ship to the Northern Lights
The International Energy Agency’s World Energy onshore terminal on the west coast. From there,
Outlook 2019 iden- it is offloaded into
tified CCS as critical intermediate storage
to meeting emissions tanks for continuous
reduction targets at the transport of CO2 by
lowest possible cost. pipeline to subsea
The agency also iden- injection wells for
tified in a May 2019 permanent storage
technology report that in a northern North
industrial production Sea reservoir, accord-
accounts for one-quar- ing to Equinor.
ter of CO2 emissions In March, Equinor
from energy and indus- and its partners in the
trial processes, and Ashtead Technology’s Deflection Monitoring System was used to project, Shell and Total,
40% of global energy monitor the successful installation of an Integrated Satellite Structure announced the drilling
demand. A growing at the Northern Lights CCS project. (Source: Ashtead Technology) of confirmation well
and increasingly urban- 31/5-7 Eos, located
ized global population ensure that demand for cement, south of the Troll Field in the North Sea, had com-
steel and chemicals remains strong. The future produc- pleted. The purpose of the drilling was to determine the
tion of these materials must also be more efficient. suitability of the reservoir in the Johansen Formation
“One-third of industry energy demand is for for CO2 storage.
high-temperature heat, for which there are few mature The well is located about 2,500 m below the sea-
alternatives to the direct use of fossil fuels. Process floor and is the first one drilled in exploitation
emissions, which result from chemical reactions and license 001. If the Northern Lights project is
therefore cannot be avoided by switching to alternative sanctioned, the well will be used
fuels, account for one-quarter (almost two gigatonnes for injection and storage of CO2,
of CO2) of industrial emissions,” the report stated. according to the release.

18 April 2020 | E&P | HartEnergy.com

 COVER STORY:
GULF OF MEXICO

A 3D rendering
depicts the Anchor
FPU that is planned
for the Chevron-
operated Anchor
Field in the Gulf
of Mexico.
(Source: Wood)

Keeping
Faith
the

Ingenuity and
innovation delivering
steady growth in the
Gulf of Mexico

20 April 2020 | E&P | HartEnergy.com

 COVER STORY:
GULF OF MEXICO

Jennifer Presley, Executive Editor
Editor’s note: Check HartEnergy.com for updates on Gulf of
Mexico activity that occurred after this story went to press.
M&A activity over the past two years saw the shifting of
assets between existing GoM E&P companies, the return
of former players and the entrance of new players.
Combined with greenfield projects, record production
levels and advances in offshore technologies, it is easy to
believe that the GoM is back once more. E&P recently

I f the U.S. Gulf of Mexico (GoM) oil and gas industry

were a cat, then it would easily be on its 12th or 13th life
by now. In its more than eight decades of existence, the
sat down with a cross section of some of the leading play-
ers to get their views on the steadily resurging GoM.

industry has weathered considerable highs and lows. Its Breaking records, pushing forward
advances on multiple fronts in that period have been As the industry turned the page on a new decade, it did
hard-earned and beyond impressive. so with two years of record-breaking production under
From the spudding of the first offshore well in the
Creole Field in 1938 about a mile from the shores
of Louisiana’s Cameron Parish to the modern-day
greenlighting of the region’s first ultrahigh-pressure
development of the Anchor Field about 140 miles off
the same coast, the industry’s ingenuity and innova-
tion have kept the GoM’s fields producing even in the
lean years.
“The Gulf of Mexico represents a very large resource
play for Chevron. We see deep water as a very success-
ful and competitive business opportunity,” said Mark
Hatfield, vice president of Chevron’s GoM business
unit. “Recent breakthroughs in technology have opened
up new opportunities, like the high-pressure, high-
temperature reservoirs in the Wilcox and the Norphlet.
Our deepwater assets at Jack St. Malo, Big Foot and
Tahiti have the scale and provide a lot of incremental
drilling opportunities to extend those production plat-
forms and deliver strong returns.”
While the collapse in oil prices in 2014 forced hard
decisions, it was not all negative.
“The positive side of the downturn is that it brought
the offshore industry together to find ways to become
more efficient at the individual company level and as
an industry as a whole,” said Erik Milito, president of
the National Ocean Industries Association. “It enabled
the oil and gas industry to find ways to turn a profit in
an era of low cost, low price oil and ensure the industry
will continue to thrive for a long time.”
Another positive is less obvious but significant.
“We see overall the number of companies in the Gulf
of Mexico has shrunk dramatically from more than 100
down to fewer than 50 now, but it is good because it First oil from the Jack and St. Malo fields flowed in 2014 via subsea
creates diversity,” he said. “The companies in the Gulf completions back to the Jack St. Malo FPU located between the
of Mexico now create diversity in the types of projects fields. In September 2019, Chevron sanctioned the company’s first
that are being pursued. So we have new companies waterflood project in the St. Malo Field. The project, according to the
moving in, looking at shallow water, deep water or company, is expected to contribute more than 175 MMboe EUR and
ultradeep water, and pursuing projects. The Gulf of will include two new production wells, three new injector wells and
Mexico is a good investment overall.” topsides injection equipment for the FPU. (Source: Chevron)

HartEnergy.com | E&P | April 2020 21

 COVER STORY:
GULF OF MEXICO

HISTORICAL GULF OF MEXICO OIL AND GAS PRODUCTION The increases in production
and activity are generating posi-
Oil Production tive vibes across the sector.
2,500,000 “Overall, we are optimis-
tic with regard to the level
2,000,000
bbl/d

of activity in the Gulf,” said

1,500,000
Thierry Conti, senior vice
1,000,000 president of subsea product
500,000 management for TechnipFMC.
- “The overall activity should
continue to grow in 2020, and
1/1/2010
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we anticipate a 10% to 20%
Oil Forecast (bbl/d) Oil Historical (bbl/d)
increase in terms of spending
in 2020 versus 2019, based on
Gas Production business opportunities and
8,000,000 awards in our pipeline. It is too
7,000,000 early to assess how the recent
6,000,000
Mcf/d

5,000,000 uncertainties in the market

4,000,000 will affect demand and how oil
3,000,000
2,000,000
prices will impact this picture.”
1,000,000 The versatility of the GoM
- also contributes to its success
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in that it offers multiple
development options to
Gas Forecast (Mcf/d) Gas Historical (Mcf/d) ensure competitiveness.
“The Gulf is a key part
(Source: Enverus) of the global picture,” said
Don Sweet, president of
its belt and with E&P companies ready for another year OneSubsea, Schlumberger. “I think of the Gulf as
of record growth. two markets. It is a robust subsea tieback market, one
In 2018 GoM crude oil production was about 1.8 where our customers want to leverage their existing
MMbbl/d, setting a new annual record, according to infrastructure, keep the host full, and in many cases,
the U.S. Energy Information Administration (EIA). It they want to do that quickly.”
did it again in 2019 when production hit 1.9 MMbbl/d, The GoM’s other market is greenfield, requiring a
and that’s after accounting for hurricane-related “different type of delivery schedule because it is dictated
shut-ins. The EIA’s latest Short-Term Energy Outlook by a new host,” he said.
forecasts annual crude oil production in the GoM will The pairing of legacy fields and their low rates of
increase to an average of 2 MMbbl/d in 2020. decline with fresh production from new field develop-
The GoM deep water will provide most of 2020’s ment projects has provided the GoM with an advantage
growth, according to a Rystad Energy release. Oil pro- over other investment options.
duction in the GoM has grown every year since 2013, “The Gulf of Mexico benefits from having well-
with an average of 104,000 bbl/d of oil added annually, developed infrastructure with opportunities to add
with infill drilling in legacy producing fields such as additional barrels of oil without needing more infra-
Mars and Thunder Horse providing an essential contri- structure to do it,” said Steve Barrett, senior vice
bution. With its startup in May 2019, the Appomattox president of business development for Oceaneering.
Field will make a significant production contribution as “The market has played out pretty positively in terms
it ramped up toward its processing capacity of 175,000 of benefiting from the huge greenfield developments
boe/d, according to the release. that occurred from 2005 to 2015. That 10-year span
Deepwater discoveries in the GoM will lead offshore positioned the Gulf of Mexico in a good way to take
production to reach a record 2.4 MMbbl/d in 2026, advantage of tiebacks and cost-effective ways to exploit
according to the EIA’s 2020 Annual Energy Outlook. reserves that are still undeveloped.”

22 April 2020 | E&P | HartEnergy.com

 COVER STORY:
GULF OF MEXICO

understand it better. When we can

drill, complete and tieback for $125
million or $135 million, those wells
become cheaper, and it enables us
to have smaller reserve targets and
much lower breakeven costs when
your total project costs have come
down that far.”

Activity bright spots

There is plenty of activity bubbling
away in the GoM. For example,
LLOG Exploration announced in
June 2019 that the initial phase of
the Buckskin Project was online with
production from two wells flowing
A rendering of subsea tieback infrastructure shows standardized equipment and through a 6-mile tieback to the
flowlines. (Source: Oceaneering) Lucius Platform.
The company noted that the drill-
According to Matt McCarroll, president and CEO ing, completion and subsea installation were completed
of Fieldwood Energy, the widespread use of subsea ahead of schedule and on budget. Anticipated Phase
tiebacks is due to improvements in reliability, safety 1 production is 30,000 bbl/d, with additional phases
and more. required to fully develop the field’s estimated 5 Bbbl of
“Subsea tiebacks have been around forever. People original oil in place.
tend to focus on the big projects with new infrastruc- Talos Energy deepened its U.S. GoM portfolio in
ture, but there are subsea tiebacks to Bullwinkle that December with a series of deals with three private-
have been out there for 20 years,” he said. “The tech- equity-backed companies worth $640 million, acquir-
nology has improved, and the reliability and safety of ing assets that include more than 40 identified explo-
the equipment are better. What has made tiebacks a ration prospects located on total footprint of about
more attractive option are the subsea trees, wellheads, 700,000 gross acres. The acquired assets produced
controls and umbili-
cals are more or less HISTORICAL ACTIVE RIGS IN THE GULF OF MEXICO BY MOST ACTIVE OPERATORS
standardized.”
80
For an indepen-
70
dent operator like
Fieldwood, standard- 60
ization is helping the 50
Active Rigs

company keep costs 40

low and get to first
30
oil faster.
“We do not need 20
to start from scratch 10
and build ‘serial 0
No. 1’ every time we
6/2014

9/2014

12/2014

3/2015

6/2015

9/2015

12/2015

3/2016

6/2016

9/2016

12/2016

3/2017

6/2017

9/2017

12/2017

3/2018

6/2018

9/2018

12/2018

3/2019

6/2019

9/2019

12/2019

build something,”
McCarroll said. “Let’s
find something that OTHERS ARENA OFFSHORE BP CHEVRON
ENVEN ENERGY VENTURES LLC EXXON M OBIL HESS LLOG EXPLORATION
has multiple uses
MURPHY OIL OCCIDENTAL PETROLEUM SHELL W&T OFFSHORE INC.
and fits; you can mix WALTER OIL & GAS CORP.
and match it. It’ll be
cheaper and we’ll (Source: Enverus)

HartEnergy.com | E&P | April 2020 23

 COVER STORY:
GULF OF MEXICO
The Sevan Louisiana, built in 2013,
is a sixth-generation Sevan 650
DP semisubmersible drilling rig.
(Source: Seadrill)
19,000 boe/d, consisting of 65% oil and more than
70% liquids during the third quarter last year, increas-
ing the company’s production to 72,000 boe/d.
“This transaction allows Talos to increase its 2019 pro-
duction and 2P reserves by 35% and become one of the
top 10 producers in the U.S. Gulf of Mexico (including
both shelf and deep water),” said Mfon Usoro, from
Wood Mackenzie’s GoM upstream team, in a release.
“The assets acquired have some of the most compet-
itive economics, and Wood Mackenzie estimates the
point-forward breakeven for the majority of the assets at
less than $15/bbl.”
Drilling activity in the basin is brisk, too, as more than
one contractor has noted in their quarterly reports.
Seadrill announced in February 2020 that Walter
Oil & Gas Corp. extended its contract for the Sevan
Louisiana to June 2020 with a day rate of $145,000.
The drilling contractor also announced that LLOG
Exploration contracted its seventh-generation drillship,
West Neptune, with a day rate of $202,000 to the end of
the year for its GoM operations.
Transocean’s president and CEO, Jeremy Thigpen,
noted in his fourth-quarter 2019 remarks that the mar-
ket for high-specification assets is “virtually sold out
for the majority of 2020,” adding that the company is
receiving inquiries about bringing additional rigs into
the GoM to meet demand.
“As our customers continue to realize the favorable
economics offshore, we are witnessing a shift in focus
toward the deep water. The opportunities include
greenfield development, tiebacks and exploration,” he
said. “Some industry reports indicate that deepwater
exploration projects will outpace development in 2020
for the first time since 2014.”
24
Thigpen also noted that Talos Energy signed a four-
month contract for its sixth-generation drillship, the
Deepwater Inspiration, at a day rate of $210,000.
Contributing to the success of deepwater are improve-
ments in technologies that have made it possible to
locate and tie back nearby resources to existing produc-
tion platforms.
Anchors away on 20k
In late February, Chevron took another step closer to
dropping anchor at its Anchor Field with the news that
Wood is heading up the multimillion-dollar design proj-
ect for the supermajor’s deepwater development.
It was a quiet but significant step for the $5.7 billion
project sanctioned in late December 2019 by Chevron.
It is a project that Wood has been involved in since
2017 with its work on the preliminary FEED (pre-FEED)
and FEED.
The project now focuses on the design of the
wet tree development that will use a semisubmers-
ible floating production unit (FPU) and will have a
production capacity of 75,000 bbl/d of oil and 28
MMcf/d of gas, with room for future expansion,
according to a press release.
“The delivery of new technology capable of handling
pressures of 20,000 psi also enabled access to other
high-pressure resource opportunities across the Gulf to
Chevron and the industry. Ultimately, our investment
decisions fundamentally come down to the economics
that we anticipate out of an individual development,”
Hatfield said.
“And those are obviously influenced by the size of
the resource, the development strategy, whether it’s a
tieback or a newbuild and the complexity of the reser-
April 2020 | E&P | HartEnergy.com

voir,” he said. “It’s really all about making choices and
doing what we believe will be the best opportunity to
secure good returns for our portfolio.”
One particular enabling technology need for the
development of 20k fields is the drillship. For the Anchor
Field, this will be Transocean’s seventh-generation drill-
ship Deepwater Titan. It will be the first ultradeepwater
floater rated for 20k-psi operations, which are expected
to commence in the second half of 2021 at the Anchor
Field. The drillship will feature dual 20k-psi BOP, a hook-
load capacity of 3 MMlb and a 165-ton active heave com-
pensating crane.
“Construction on the Deepwater Titan has progressed
as planned, and we look forward to delivering this
drillship to Chevron for her maiden contract commenc-
ing in 2021,” Thigpen said in his fourth-quarter 2019
remarks. “This five-year contract will allow Chevron to
construct and ultimately produce the first fields in this
extremely high-pressure area of the Lower Tertiary in
the deepwater Gulf of Mexico. The desire to exploit
this basin is driven by the exceptional returns Chevron
anticipates, with development costs for this first field,
Anchor, now estimated to be as low as $20 per barrel.”
Chevron is the operator of the Anchor discovery with
a 62.86% interest and Total is its partner with a working
interest of 37.14%, according to a release. The project
is one of three 20k-psi developments underway in the
deepwater GoM. In October 2019, LLOG Exploration
Oceaneering’s umbilicals manufacturing facility is located in Panama City, Fla. (Source: Oceaneering)
HartEnergy.com | E&P | April 2020
COVER STORY:
GULF OF MEXICO
ordered the first 20k-psi-rated subsea trees from
TechnipFMC for its Shenandoah Field located about
200 miles south of New Orleans.
The third is at the North Platte Field, discovered in
2012 by Total and Cobalt International, and located
about 170 miles south of Houma, La. The field develop-
ment plan is based on eight subsea wells and two subsea
drilling bases connected via two production loops to a
newbuild, lightweight FPU.
Worley announced in January 2020 that it was
awarded the FEED contract for the field development
and the semi-FPU moored in water more than 1,300
m deep, with a production capacity of 75,000 bbl/d.
Total operates North Platte with a 60% working inter-
est, alongside Equinor (40%), according to the Form
6-K that the company filed with the U.S. Securities and
Exchange Commission. Total is expected to make its
final investment decision in 2021.
Subsea execution
Signs are pointing to a positive year ahead for many in
the subsea sector. According to TechnipFMC’s Conti,
the adoption of its fully integrated solutions and exe-
cution model or iEPCI “continues to gain traction by
its clients.
“In 2020 we are executing five iEPCI projects in the
Gulf of Mexico,” he said. “In addition, we are seeing
increasing demand for subsea trees and flexible jumpers
25
 COVER STORY:
GULF OF MEXICO
and increases in customer support operations in terms
of equipment refurbishments and interventions.”
He added that the company helps its clients main-
tain low-breakeven developments and improve project
economics through early engagement, noting that the
early collaboration with clients and the supply chain is
“essential in really impacting the value drivers.”
“We also drive standards and configurability in our
products, fix what can be easily get fixed and accept to
keep variables to a minimum,” he said. “Our Subsea 2.0
platform is a perfect example in that it is a fully pre-en-
gineered set of configurations for certain types of equip-
ment, a kind of catalog of fit, form and functions. By
achieving this and because we are vertically integrated
from SPS to SURF [subsea production systems to subsea
umbilicals, risers and flowlines], we can then line up our
delivery model with those standard configurations to
drive costs down by taking out the excess variability.”
Baker Hughes’ Raymond Semple, vice president of
subsea production systems and services, said he expects
to see “smaller projects to continue dominating awards,
with many initiated in 2019 and on a fast track for first
oil in the first quarter of 2021 through the first quarter
of 2022,” adding that their GoM clients need “reliabil-
ity, consistency and a good execution strategy.”
He added, “We need to do the job correctly the first
time around. Operators realize they’ve driven the price
down, so being efficient through execution and reliabil-
ity is key.”
One way Baker Hughes is accomplishing this is through
the use of its Subsea Connect strategy, Semple said.
“Through this strategy, we are engaging clients at
stages either just before or during drilling and offering
engineering services to cover the concept selection,
pre-FEED and FEED phases of the project as a sole
source to provide execution certainty,” he said. “We
are also partnering with our SURF partner to provide a
full EPCI [engineering, procurement, construction and
installation] package that limits the interfaces for the
client and therefore shortens decision-making periods
through the client’s development plans.”
The GoM, according to Oceaneering’s Barrett, “has
been a more stable, tieback-driven environment, and
our clients are now more confident because they have
seen much success in extending the life of their assets.”
Shorter cycle times are one sure way to improve
returns, according to Chevron’s Hatfield.
“If we have fairly high confidence in a project, we’ll
order the items that have longer lead times, like subsea
equipment and some wellhead equipment, that might
take a bit longer,” he said. “What we also do, though,
26
is try to reduce the cycle times, which can largely be
accomplished through standardization. It is a real big
focus for Chevron and the rest of the industry quite
honestly. The more we can standardize our equipment,
then that benefits not only an individual company, but
it also benefits the contractor as well.”
According to Sweet, short cycle times are key to being
competitive in tight capital conditions.
“When you’re competing with other capital inside
of an operator like unconventionals, then we want the
Gulf to be competitive. It is important to help drive
costs out through the selection of standard equipment
and short delivery times,” he said.
The push for standardization across the industry is
one that Barrett believes is growing.
“Operators are really committed to equipment and
process standardization to continue to drive cost effi-
ciencies,” he said. “They want to be able to execute
small drill centers with four to six wells and single well
tiebacks to get to first oil very quickly, which is the most
significant factor that is positively impacting the returns
on these projects.
“Lead times are important and critical to our cus-
tomers, and some lead times have increased, particu-
larly in the umbilical business. To shorten these lead
times, we are engaging much earlier with clients and
still need to employ much higher levels of standardiza-
tion,” he continued. “There are opportunities to work
with customers toward more stocking or pre-ordering.
Higher degrees of collaboration with demand planning
will really help us deliver more customer success with
shorter lead times.”
Go far or stay close?
Pushing out the distance of subsea tiebacks is also
underway, according to Hatfield.
“We’ve been working on technology to extend subsea
tiebacks for quite some time. It includes the long-
distance pumping of fluids and the ability to avoid for-
mation hydrates on the seafloor,” he said. “Pushing that
range from the neighborhood of maybe 30 miles out to
50 miles or greater really expands the opportunities for
us to use our existing infrastructure. We’re working on
multiphase pumps and a number of these technologies
right now.”
Multiphase boosting is key to achieving full asset
potential. The greater pressure drawdown enabled by
multiphase boosting ensures operators achieve higher
production rates and greater oil and gas recovery.
Flow assurance is one particular challenge with
long-distance tiebacks addressed through a variety of
April 2020 | E&P | HartEnergy.com
 COVER STORY:
GULF OF MEXICO
OneSubsea will supply the industry’s first fully integrated subsea production system rated up to 20k psi to develop the Anchor Field in
the GoM. (Source: OneSubsea, Schlumberger)
technologies, including flowline heating and multi-
phase subsea pumps, which comes down to physics,
according to OneSubsea’s Sweet.
“Multiphase boosting accelerates recovery and
improves flow rates to help operators achieve higher
production earlier in the project cycle, which leads to a
decreased payback time,” he said. “Additionally, boost-
ing helps with flow assurance challenges by mitigating
slugging flow and increase in the fluid’s temperature
that comes from boosting the fluid.”
On some long-distance tiebacks, flowline heating
requirements can be reduced or eliminated while the
multiphase pump system is in operation, he added.
In December 2019, OneSubsea announced it had
been awarded a contract by Chevron to supply an inte-
grated subsea production and multiphase boosting sys-
tem for the Anchor Field.
OneSubsea will supply vertical monobore production
trees and multiphase flowmeters rated up to 20,000 psi,
according to the company. Also included are produc-
tion manifolds and an integrated manifold multiphase
28
pump station rated to 16,500 psi, subsea controls and
distribution. It is the first 20,000-psi subsea production
system contract in the industry.
The equipment that will be deployed in this project
is covered under the 20-year subsea equipment and
services master order for Chevron’s development proj-
ects in the GoM. Projects will benefit from a pre-
approved catalog of standard subsea equipment,
enabling Chevron to reduce investment costs while
improving its subsea development performance.
According to TechnipFMC’s Conti, the most exciting
and challenging methods of improving production are
subsea multiphase boosting and water injection.
“The use of subsea multiphase pumps can increase
production by 30% to 50% on average when compared
to initial baseline and well-type curve, which ultimately
drives a better recovery factor,” Conti said.
“A secondary benefit is that boosting improves flow
assurance and protects the tail-end production of the
fields. Soon, distributed subsea boosting could be
enabled by more cost-effective pumping solutions,
April 2020 | E&P | HartEnergy.com
 COVER STORY:
GULF OF MEXICO
An illustration depicts Oceaneering’s SPT tank farm with fluid storage modules that can be set up with a pair of 1,500-gal bladders in an
ISO container-dimensioned frame. (Source: Oceaneering)
subsea power distribution and subsea hardware integra-
tion. This could open more boosting opportunities and
more economical EOR opportunities for our clients,”
Conti said.
For water injection, it is the lack of real estate on
existing platforms that poses a significant challenge.
“The treatment and injection of water requires consid-
erable power and space,” he said. “Corrosion manage-
ment of the subsea lines is another challenge. We are
working on multiple technologies now to enhance this
lift option, including the development of a subsea seawa-
ter treatment and injection system and the use of plastic
line pipe.”
Taking the treatment and injection process subsea
solves the topsides real estate problem and simplifies it,
reduces the number of personnel on board and elimi-
nates emissions, he added.
“By simplifying the topsides, you remedy some of
those challenges,” Conti said.
Subsea factories provide a way to improve production
at the wellhead. Oceaneering enables this option with
its Subsea Pumping Technology (SPT).
“We believe it is a key to enabling subsea factories,” said
Todd Newell, vice president of technology for the com-
pany. “SPT takes electric pumps, fluid storage and asso-
ciated controls and places them into dedicated modules,
moving them closer to production infrastructure subsea.”
By placing the chemical source and rotating equip-
ment closer to the well, faster response times for
30
chemical delivery compared to a standard umbilical are
enabled, he noted.
“Not only can operators save time, but they can reduce
the capital expenditure costs associated with long step-
outs (lengths greater than 31 miles) by 50% versus tradi-
tional methods because the umbilical will be far less com-
plex, requiring only power and communications,” he said.
SPT is scalable, with the fluid storage modules able to
be set up with a pair of 1,500-gal. bladders in the ISO
container-dimensioned frame, he added.
“It makes the system road-transportable, and two
frames can be connected to provide up to 6,000 gallons
of fluids for the well,” he said. “The bladders can either
be refilled in place, or empty modules can be retrieved
and replaced. The technology is at a readiness level of
5 on the API17N scale, and we are exploring customer
partnerships to advance it further.”
Advancing technologies through collaborative partner-
ships in all forms have helped extend the life of the GoM.
So has knowing when to adjust the sails when the market
waters get choppy. And if there’s any truth to the supersti-
tion that cats onboard a vessel bring good luck, then the
GoM’s oil and gas industry has a few more lives left in it.
“The Gulf got a bad name for a long time, and then
people had been saying the Gulf of Mexico’s dead for
20 years. We started our first Gulf of Mexico company
in 2008 and our business plan was to get in because
everyone else was getting out,” McCarroll said. “It’s
always been a buyer’s market.”
April 2020 | E&P | HartEnergy.com
 EXPLORATION:
RESERVOIR CHARACTERIZATION
Gaining illumination through
seismic evolution
More azimuths and offsets mean greater exploration success.
Jason Kegal, Duncan Bate and Henrik Roende, TGS
N ew seismic and drilling technologies have ushered
in a new era of prospects and discoveries in the Gulf
of Mexico (GoM). The deepwater GoM, despite the
two economic downturns of 2009 and 2013, has seen an
upsurge in exploration efforts resulting in more than
130 new discoveries since 2005, according to the Bureau
of Ocean Energy Management. This has coincided with
a 29% increase in the U.S. Energy Information Adminis-
tration’s (EIA) proven reserve estimates for the federal
GoM from 190 MMbbl in 2005 to 268 MMbbl in the
most recent EIA proven reserve release distributed in
December 2018.
Apart from the technological factors influencing the
rejuvenation, new geologic targets and increased infra-
structure and capacity also have played a role in new
discoveries. Exploration teams have shown a drive to
peruse and identify new play concepts where previously
inaccessible pay was not recognized in vintage seismic
data. The evolution of seismic imaging and acquisition
has allowed subsalt, near salt and deep Mesozoic plays
to be better imaged.
Increasing illumination
The GoM has very dense seismic coverage with
near-continuous acquisition over the past 30 years.
2D seismic covers the entire GoM and 3D coverage
can be found in all but the deepest areas and in the
eastern GoM currently restricted by a moratorium.
Unfortunately, the bulk of these data is limited to nar-
row-azimuth (NAZ) streamer data with limited offsets
and azimuths. Due to the complex depositional and
structural environments found in the GoM, more pre-
cise imaging is required to increase the lateral and ver-
tical seismic resolution required to analyze thinner and
smaller geologic targets.
Increased illumination of modern prospects com-
monly found in the 8-km to 10-km range and often
obscured by various salt structures has been made
possible by advances in data processing algorithms and
increases in computational power. The main challenge
32
in keeping up with modern processing technology
has been advancing the acquisition technology at the
same rate to gain greater offsets and multiple azimuths,
increasing the input data needed to push the modern
processing techniques to their ultimate value.
The emergence in the acquisition of wide-azimuth
(WAZ), multiwide-azimuth (MWAZ) and full-azimuth
(FAZ) survey types acquired with a variety of streamer
and vessel configurations in the past 15 years has
helped to provide better input data. These modern
streamer configurations all offer long offsets with broad
azimuth data that have substantially helped prospective
image areas and have opened new subsalt regions that
historically had never been illuminated.
Although modern WAZ, FAZ and MWAZ seismic
created a huge improvement over previously available
NAZ data, it still has its restrictions. Namely, the long
offsets typically have a minimum percentage of azi-
muthal coverage, leaving gaps or voids in the data. This
is an issue all streamer techniques, including FAZ, have
in common.
Addressing the azimuthal challenge
The challenge of gaining truly FAZ coverage has been
solved using ocean-bottom node (OBN) technology.
This technology allows acquisition of FAZ nodal data
(FAN), which has allowed seismic processing com-
panies the opportunity to use a rich set of input data
to test and improve their modern techniques. OBNs
provide the technology to apply a land seismic con-
figuration on the bottom of the seafloor, reducing
acquisition noise and better illuminating highly com-
plex structural areas while delineating the Miocene-
through Jurassic-aged reservoirs.
Increased resolution in OBN surveys is not only an
aspect of survey configuration but also can be attributed
to the nodes themselves. Each node contains four seismic
sensors, one hydrophone and three geophones, allowing
one vertical component and two horizontal components.
The technology of the equipment alone improves vertical
resolution compared to streamer cables. The increase in
resolution greatly helps identify zones of bypassed pay
and improves structural definition.
April 2020 | E&P | HartEnergy.com
 EXPLORATION:
RESERVOIR CHARACTERIZATION

Meters Combining the Fusion MWAZ

-2,000 data with the sparse nodal data
-3,000 of Amendment FAN introduced
-4,000
a large quantity of input data
-5,000
-6,000
from multiple datasets. Utilizing
-7,000 the ultralong offsets and FAZ
-8,000 data from Amendment FAN, it is
-9,000 possible to build a new velocity
-10,000 model using FWI. The OBN data
-11,000 in the FWI velocity model ensures
-12,000
the model is tied structurally
-13,000
-14,000 to the underlying geology with
-15,000 model features following large-
-16,000 scale imaging trends. Refraction
A Fusion MWAZ arbitrary line illustrates the salt, structural and depositional complexity found in and reflection-based FWI model
the Mississippi Canyon and Atwater Valley protraction areas. (Source: TGS) updates can provide details for
the high-resolution velocity con-
OBNs record multiple data volumes (P-wave, hydro- trasts. Alternating iterations of the image-guided tomog-
phone and shear wave) in one dataset. This captures raphy are then able to resolve the larger scale velocity
the full offsets and FAZ in one pass, making the highest updates needed to correct for bulk traveltime errors.
trace density per unit of any seismic technology avail- This approach leads to a velocity model that is geolog-
able. The resolution benefits are directly related to the ically constrained and illustrates high-contrast features
hydrophone data containing the primary vertical com- responding well with the imaged anomalous regions.
ponent. Shear-wave data from the horizontal compo- Observed structures below high-contrast features are
nents continue to help improve processing techniques greatly improved.
and have shown value in identifying hazards and further A key objective for the Amendment FAN survey
defining reservoirs and their characteristics. is to improve illumination of targets, particularly in
An example of the technological advances leading subsalt basins. This is obtained by a very dense and
to the modernization of acquisition and processing is large offset grid that allows ray paths to travel, reflect
seen in the multiple overlapping surveys found in the and refract deeper with the salt flanks interfaces. The
Mississippi Canyon and Atwater Valley protraction areas. improved subsalt refractions diving waves easily reach
The Freedom-Liberty WAZ and Patriot WAZ surveys the Louann Salt. An uplift in data quality over existing
acquired in 2009 and 2013 improved the imaging of data will generally be attributed to the unprecedented
Miocene prospects. The Fusion MWAZ survey, com- sampling of azimuths and ultralong offsets. This is
pleted in 2018, is a reprocessing of these data that com- an advancement in the application of refraction FWI
bines multiple azimuths leading to an improved velocity to improve velocity model building. The model is
model and improved imaging in many areas. In 2019 expected to increase coverage of the subsurface and
OBNs were deployed to create the Amendment FAN sur- result in subsalt events for reflection FWI and multi-
vey where FAZs and ultralong offsets provided optimal arrival tomography.
input data for full-waveform inversion (FWI) processing, Data volumes created using modern OBN technology,
leading to a refined velocity model and improving imag- acquisition techniques and processing models are defin-
ing in and around complex salt and at Mesozoic depths. ing a new baseline for quality subsurface imaging using
The Amendment FAN survey is the industry’s first FAZ, ultralong offsets, small bin size and exponentially
and largest ultralong offset deepwater multiclient sur- more measurements per area. These modern tech-
vey. The survey has offsets out to 60,000 m, covers 118 niques have already begun to improve how the industry
Outer Continental Shelf lease blocks and reaches water acquires data and will continue to provide new and
depths of 2,070 m. The source volume was a 5,110-cu.- improved subsurface insight. Uncovering bypassed pay
inch air gun used to record signal down to 1.5 Hz and and discovering untapped reservoirs will become a
at ultralong offsets. The sparse nodal configuration of more common occurrence in the GoM deepwater,
the survey is a modern approach to maximize input improving drilling success, field development and the
data while minimizing costs. discovery of new and deeper zones.

34 April 2020 | E&P | HartEnergy.com

 DRILLING:
DEEPWATER RIG ADVANCES
Advanced technology improves
safety, operational efficiency
AI, LIDAR and advanced edge computing technology combine to deliver improved
red zone management and more efficient operations and maintenance.
Iain Cracknell, Seadrill
I n the age of the Fourth Industrial Revolution, tech-
nology is becoming more deeply integrated into every
aspect of offshore operations. More equipment and
operational data are being captured than ever before,
and improved data analytics is transforming enormous
amounts of information into actionable intelligence.
Advances in technology are making operations more
efficient and dramatically improving worker safety.
In areas like the red zone on the drill floor, moving machinery and
heavy drilling equipment increases the probability of injury.
(Source: Seadrill)
Managing the red zone
The oil and gas industry has been working to improve
worker safety for decades, but the zero incident safety
goal remains elusive. Statistics show improvements are
being made, but there is a long way to go.
From 2007 to 2018, the U.K. recorded seven years
with no fatalities, according to the Oil & Gas U.K.’s
“Health & Safety Report 2019.” Unfortunately, five
workers lost their lives offshore the U.K. during that
same 10-year span. According to statistics from the U.S.
36
Bureau of Safety and Environmental Enforcement, the
U.S. has seen at least one fatality offshore each year
from 2007 through 2018.
One of the primary causes of injuries is human error.
Simply put, people get distracted. In areas like the red
zone on the drill floor, where there are moving machin-
ery and heavy drilling equipment, there is a high proba-
bility of injury when that happens.
Historically, maintaining safety in the red zone has
been the responsibility of the driller, who monitors
workers and gives visual approval for entering and
exiting the area. Meanwhile, the driller is managing
the drilling process, responding to real-time data and
making adjustments as downhole conditions change.
Dividing focus between that complex process and activ-
ity on the drill floor inevitably leads to inattention that
has the potential to result in serious injury.
Optimizing control
The simplest way to avoid accidents is to keep people
out of harm’s way, and using advanced technologies is
improving the ability to do that.
In 2018 Seadrill took on the challenge of harnessing
technology to improve safety and began looking for
ways to identify and predict the movement of people
and equipment in the red zone that would not rely so
heavily on human interaction. The result is a completely
bespoke solution that automates the safety process, iden-
tifying incursions into the red zone and allowing person-
nel movement to be monitored and viewed in real time
on the rig and from remote locations. Therefore, the
potential for accidents can be minimized.
Seadrill’s Vision IQ is a next-generation safety system
that monitors and provides advanced warning of poten-
tial risks. The system combines laser imaging, detection
and ranging (LIDAR), artificial intelligence (AI) and
advanced edge computing technology to enable safer
and more efficient operations.
The LIDAR system creates a dynamically monitored
environment, providing up to 360-degree coverage on
an area by emitting light and measuring the reflection
to calculate distances accurate to a few millimeters. This
April 2020 | E&P | HartEnergy.com
 DRILLING:
DEEPWATER RIG ADVANCES
generates approximately 700,000 sensor readings per
second that are analyzed in real time. Algorithms iden-
tify and track the location and movement of people and
equipment, and advanced AI technology allows real-
time monitoring visualized in 3D.
The system is engineered specifically for offshore
drilling and, in the future, can be integrated into the
rig’s anti-collision system to create a unified, seamless
approach to safety, automatically shutting down equip-
ment when dangerous situations develop. Because the
system is fully portable, it can improve safety not only by
continuously monitoring the drill floor but by tempo-
rarily monitoring any area on the vessel.
Vision IQ was tested in an onshore R&D facility
before the first fully functioning prototype was installed
on the West Neptune sixth-generation, ultradeepwater
drillship for use in real-world environments. The suc-
cessful pilot program led to plans for the system to be
deployed on 12 rigs by the end of the year.
As part of its commitment to improving offshore
safety, Seadrill has made the technology behind Vision
IQ available to industry peers.
Streamlining operations
The company also is tapping into Big Data and data
analytics technology, using real-time data from
onboard equipment to optimize productivity, improve
understanding of asset integrity and more effectively
manage maintenance.
Working within an exclusive partnership with The
Marsden Group, a Houston-based data science com-
pany, and using Microsoft Azure cloud-based comput-
ing, Seadrill has built a digital platform called PLATO
to support the understanding and management of data
gathered from its floating assets.
PLATO creates a digital twin that allows the per-
formance of onboard equipment to be monitored,
predicting fluid use, degradation and wear to identify
potential failures. This digital platform collects and
analyzes data, identifying performance patterns to
monitor and control assets and streamline operations.
It works by using a series of prebuilt algorithms and
models that are trained to understand when any area
of the performance data is showing an exception to the
norm. When unusual or abnormal trends are identi-
fied, PLATO provides clear and specific recommenda-
tions for improving performance.
The platform also monitors the BOP in real time and
feeds the information to the operating company, which
can monitor performance remotely. By collecting millions
of lines of data relating to every aspect of performance
38
PLATO is already installed on all Seadrill drillships, including
the West Auriga. By looking at the drillship fleet as a whole, it is
possible to see trends and measure efficiencies more precisely.
(Source: Seadrill)
and turning it into usable information, Seadrill is extract-
ing knowledge that can be used to make faster and more
informed decisions to better manage asset integrity.
Over time, not only does the company learn from the
actions taken onboard specific rigs, but it also can visu-
alize how these actions influence performance across
the fleet.
PLATO is already on all Seadrill drillships, and work
is underway to analyze if it should be rolled out across
the rest of the floater fleet so data can be gathered
from multiple assets and crews. Currently, by looking at
the drillship fleet as a whole, it is possible to see trends
and measure efficiencies more precisely.
PLATO will track the time it takes to trip in and out
of the hole, analyze performance, identify which drillers
are least and most efficient, and use this information to
help people improve processes and best practices across
the company. Internal training programs can be devel-
oped using historical drilling data to tailor courses that
use a simulator to help drillers improve. The result will
be enhanced safety and efficiency across the board.
While this is a useful application of the technology, it
is not the only improvement enabled by the digital plat-
form. PLATO also gathers equipment performance data
for improved maintenance planning. Crew members
can access performance data using devices like iPads to
better understand fatigue and wear and plan repair and
replacement based on the condition of the equipment
instead of adhering to a predetermined and often inef-
ficient maintenance plan.
April 2020 | E&P | HartEnergy.com
 FRACTURE FLUIDS

Stimulation fluid additives for

the next cycle
The geologic complexity of unconventional reservoirs requires
more than singular purpose chemicals.

of vanishingly few landing zones contained the smec-

Charles Landis, Integrity Bio-Chem tite-rich zones encountered during drilling. In 2015 it
became apparent that the need for swelling clay control

C reativity in the oil field has been quietly percolat-

ing in the offices of E&P companies since the 2014
downtown. The best minds in geology, geochemistry,
geophysics and engineering have moved on from “how
do we stimulate these rocks?” to “how do we profitably
stimulate these wells?”
Reconsideration has been broad, starting as chaotic
exercises, but it has evolved with rigor to reveal the
outlines of the next generation of fluids. Unfortunately
for chemical suppliers, engineering design firms and
pressure pumpers that do not hear the operators, the
market has become a Darwinian exercise in the sur-
vival of the cost fittest. The initial blunt force response
by these companies was cost reduction in an effort to
keep the lights on. Costs were reduced by reflexively
removing additives from fluids like clay control and
surfactant-based products, product substi-
tution (proppant) and leveraging supply EFFECTS OF SURFACTANT: CUMULATIVE PRODUCTION BOE
and demand conditions (polyacrylamide
friction reducers). 100,000
Not surprisingly, some of these early
decisions are now being reconsidered with- 10,000
out losing the focus of more diligent cash
management. The reconsideration has 1,000
Production
was minimal. Clay control was among the first chemicals
to be scratched from fluid prescriptions.
However, the dynamic interaction between rock and
fluids continued to present clay-related challenges for
sustaining hydrocarbon production. Sloughing clays still
harmed fracture conductivity and fracture face soften-
ing still eased proppant embedment. Both problems fell
squarely in the realm of clay control but in a different
context to the first-generation clay control products.
Advances in biopolymer chemistry occurred in parallel
to the domestic hydraulic fracturing boom and are now
available to solve these problems. Specific features such as
structure (linear, cyclic, condensed, etc.) and molecular
weight are available with capability-controlled production
practices. Additionally, economically promising reactions
to functionalize these biopolymers for enhanced perfor-
+48%

revealed several pockets of valuable tech-

nology introductions, especially for stimu- 100
lation chemicals.
10
Future of clay control
None of the common fluid additives have 10 50 100 150 200 250 300 350 400
endured more scrutiny than clay control
Days on Production
products—deservedly so. The rapid growth
Base Well Average Well
of the hydraulic fracturing business in the
early 2000s put the industry in a position 48% more oil (90 days)
to reach for the familiar, the easy and the
available. Cation exchange-based additives FIGURE 1. An early cumulative production increase was achieved with
like potassium chloride and choline chlo- engineered flow for a Permian Basin hydraulically fractured reservoir. Flow aid
ride products, among others, were quickly produced results compared to a control set of 15 similarly stimulated wells.
deployed even though the mineralogy (Source: Integrity Bio-Chem)

40 April 2020 | E&P | HartEnergy.com


mance are now serving the oilfield market. These reac-
tions also deliver the certainty of formulation improve-
ment and overall fluid compatibility.
Technical mastery of these features leads to the multi-
functionality needed to create value for solutions pro-
viders and deliver field production increases in this era
of return on investment (Figure 1). New biopolymeric
clay control solutions can be chemically engineered to
slow proppant embedment, the process that leads to
the constriction of the fracture network (i.e., conduc-
tivity decrease). Testing shows that first-generation clay
control products fail to address proppant embedment.
Nor should they. The exchange base reaction designed
to address hydration simultaneously reduces the clay
structure producing nanoscale voids backfilled with for-
mation waters.
This structural change and subsequent backfilling are
likely key factors in fracture face softening that could
increase embedment. Although there is much work to
be done to understand the dynamic chemistry at the
HartEnergy.com | E&P | April 2020
FRACTURE FLUIDS
fracture interface, a clay control additive not producing
changes in the mineral structure certainly addresses this
softening mechanism.
Flow aids
After more than 160 years from the first producing oil
well, the industry is still teaching itself how to produce
the large remaining oil reserves in low-permeability
reservoirs. Estimates of the remaining hydrocarbon
resource in newly developed unconventional reservoirs
exceed 80%. The industry knows that this oil is still avail-
able. Thus far, it focused on optimizing proppant sizing,
types and loadings, fluid pumping rates and volumes,
perforation density, and sequencing changes to all the
above. However, none of these recent efforts access the
first 100 µm of the unpropped oil migration path (i.e.,
the matrix). This unproduced oil is stored in habitats
of nanoporous, oil-saturated kerogen networks, moldic
porosity and parting laminations. The oils of these hab-
itats span a range of hydrocarbon (e.g., linear, cyclic,
41
 FRACTURE FLUIDS

the near-wellbore region and stim-

Oil Habitat*
Fracture Network (SRV)
Kerogen/Clay Nanopores*
Parting Lamination*
Primary & Secondary
Porosity
Mineral Coatings*
*gradational and interrelated in most rocks
FIGURE 2. The chart shows common oil habitats found in unconventional reservoirs.
(Source: Integrity Bio-Chem)
Rock Wetness without Flow Aid
Rock Wetness with Flow Aid
EUR (%) ulated rock volume, flow aids are
5- 20 said to connect the reservoir to the
well (Figure 3).
60- 80 Another property sought from
flow aids is to avoid emulsifying
1- 10
the hydrocarbon and aqueous
1- 5 phases in produced crude oil. Both
properties are readily assessed by
well-controlled laboratory experi-
5- 10
ments. However, at best, these tests
give a first-principle glimpse of
how the product may perform in
the reservoir.
There is still an opportunity to
increase the value of flow aids with
advanced formulation chemistry. Current
flow aid formulations are relatively primitive
and focus on the conditions in the fracture
network. Chemically engineered flow aids that
are designed to simultaneously interact with
more of the individual habitats where larger
oil stores reside will improve production in the
future. Although the geochemistry of the reser-
voir and surfactants challenge the compatibility
control of these products, precedent for the
advanced formulation is found in many con-
sumer markets.

FIGURE 3. Using flow aids reduces the surface tension of an oil-saturated
Wolfcamp reservoir. The use of flow aids lowers the contact angle and
energy required for fluid movement. (Source: Integrity Bio-Chem)
polar and non-polar) and aqueous (e.g., salinity and
metal) chemistry (Figure 2).
The first-generation flow aids are engineered fluid
additives typically centered on the established prop-
erties of surfactants to increase hydrocarbon produc-
tion. A key property of flow aids is the ability to lower
surface and interfacial tension between liquid-liquid
and liquid-solid (mineral) interfaces. This process is
called “wetting,” and the main purpose is to lower
the energy required for oil to flow through formation
waters. By lowering the surface tension of the waters in
Future value
Chemical solutions providers must accept the
fact that the overpromoted products of the first
cycle introduced a credibility tax that can now
be paid with the value of product multifunc-
tionality. Clear examples exist for clay control
and production flow aids. Clay control per-
formance can be expected to simultaneously
address hydrating clays, sloughing clays and
fracture face softening.
Hydrocarbon production aids can be
expected to wet more than one oil habitat in the land-
ing zone, break the oil and manage more reactions
between hydrocarbons, waters and metals. The geologic
complexity of unconventional reservoirs requires more
than singular purpose chemicals. Resource plays are
spatially and temporally dynamic assets that are not
optimally developed with boilerplate solutions.
Chemical technology exists that easily transfers into the
oil field, especially for forward thinkers capable of
determining the aggregate return of well cost invest-
ment on well production.

42 April 2020 | E&P | HartEnergy.com

 FRACTURE FLUIDS
Friction reduction with
sand transport
Eagle Ford wells saw a reduction in treating pressure after dry friction reducer stages.
Robert Hillard, Halliburton
F racture treatments are designed with the desired out-
come in mind. When it comes to achieving targeted
rates, keeping pressures down and avoiding screenouts,
a friction reducer (FR) fluid is often the go-to fluid.
To improve proppant-carrying capacity, a high-viscosity
FR is preferred. Unfortunately, whether a regular or a
high-viscosity FR is used, sometimes a fluid is selected
that should improve the efficiency and economics of a
fracture design only to discover it fails to deliver the per-
formance needed when it is needed most.
With the combined benefits of viscosity and elastic-
ity, dry FRs can provide improved proppant transport,
allowing the placement of targeted volumes of sand
deeper into the reservoir—at the same total treatment
cost of a conventional liquid FR. Additionally, where
many fluids struggle to perform in produced water, dry
FR can provide the friction reduction needed at higher
levels of total dissolved solids (TDS), while maintaining
the desired viscosity at lower levels of TDS.
Dry FRs offer an improvement to the HSE profile of
the materials, as compared to liquid FRs, while also pro-
viding significant logistical improvements.
Unlike liquid FRs, dry high-viscosity FRs do not
contain hydrocarbon carrier fluid, which adds unnec-
FIGURE 1. The chart compares the average psi at different depths of dry FR
and liquid FR. (Source: Halliburton)
44
essary logistical requirements to a fracturing job.
Additionally, a liquid FR may have issues in extreme
cold or hot environments due to freeze point,
pour point or viscosity concerns of the product.
Traditionally, it has not been easy for service compa-
nies to pump dry materials due to unmovable/caking
issues or pump cavitation while attempting to deliver
these materials downhole. However, this is being
addressed with newer delivery methods.
Case study
A major operator in the Eagle Ford Shale play recently
used dry high-viscosity FRs on multiple wells across the
basin to improve its HSE profile and transport logistics.
Through the use of dry FRs, 165,000 gal of hydrocar-
bons were eliminated from the job.
While liquid FRs have a Halliburton Chemistry
Scoring Index (CSI) score of 120, dry FRs have a CSI
score of only 0.5. This is a 240% improvement in the
HSE profile. Regarding logistics, where liquid FR would
require three 4,000-gal transport trucks, a single dry-
gel Fruehauf trailer can be used to deliver the same
amount of polymer. This means less trucks on the road,
less trucks on location and lower fuel consumption. For
example, for every 300-gal or six 50-gal fuel tanks of
diesel not on the road, a dry FR product saves 1 ton of
diesel fuel.
Finally, with the removal of the hydrocarbon-based
carrier fluid, impurities, surfactant packages and
potential chemical compatibilities were eliminated.
Ten wells in the Eagle Ford basin were recently
treated with the Halliburton FightR LXD FR. All were
completed to design. These 10 wells, comprising 351
stages, were performed with zero nonproductive time
or operational issues. Up to a 15% decrease in treat-
ing pressure was observed when comparing average
treating pressure between dry FR stages and liquid
FR stages that had very similar total measured depths.
Figure 1 shows this comparison: one well with dry
FR (red line) versus two wells (on the same pad) that
pumped the equivalent concentration of liquid FR
(gray and black). Each point represents one treat-
ment stage and is plotted on the x-axis as a function
April 2020 | E&P | HartEnergy.com
 FRACTURE FLUIDS

of its total measured depth; the y-axis represents the

average surface treating pressure for those stages. The
closest stages, in terms of measured depth, were used
for this comparison.
Nearly all of the stages across this set of 26 showed
lower average surface treating pressure with the dry FR
when compared to the liquid FR. The largest observed
difference was 15%. On average, the stages that used
dry FR had 6% lower surface treating pressure than its
liquid FR counterpart.
Across a total of 10 wells, 495,000 lb of dry FR was
pumped, resulting in the elimination of 165,000 gal of
emulsion-based oil-containing additive and the reduc-
tion of 28 transport trucks from the road. This reduced
the overall footprint of the frac job as well as nearly 5
tons of diesel fuel.

Right, FightR Dry FR provides higher low-shear viscosity when

compared to a standard high-viscosity FR, and especially
compared to guar-based fluids. (Source: Halliburton)

HartEnergy.com | E&P | April 2020 45

 ARTIFICIAL LIFT
Optimizing lift for
small-diameter wells
An ESP system features an electromagnetic design and
better efficiency as production rates decline.
Mike Rumbaugh, Apergy
O perators active in unconventional shale plays have
increasingly shifted to drilling and completing
wells with 5½-inch, 20-lb and 23-lb casing. These smaller-
diameter wells cost significantly less to drill and com-
plete, but more importantly, they offer greater wellbore
stability and protection against the frac forces from
adjacent wells on a pad. But smaller wellbores present
challenges when the assets are passed over to the pro-
duction teams.
A large percentage of shale wells require electric sub-
mersible pumping (ESP) systems to recover the higher
fluid volumes that are common early in the production
cycle. However, traditional ESP equipment was not
designed to operate effectively in deeper wells with
long laterals and completed with 5½-inch, 20-lb and
23-lb casing.
A finite element analysis validated the lamination magnetic design
of the Apergy AFFIRMED PowerFit motor. The design successfully
generated more than 200 hp from a small-diameter motor.
(Source: Apergy)
46
To achieve the necessary horsepower to lift fluids
from 7,000 ft or more, operators traditionally have had
two options: ESPs with a 4.56-inch outside diameter
(OD) motor or ESPs with a triple-tandem 3.75-inch OD
motor. Neither choice is ideal for a variety of reasons.
Challenges for ESP systems
ESP systems with 4.56-inch OD motors provide the
required horsepower to produce the desired produc-
tion rates from deeper wells, and they can be installed
in smaller-diameter, heavy-wall casing, but this requires
modifications to the motor. The lock plates, or anti-
rotation devices, that keep the motor head and base from
unthreading from the main housing must be removed to
fit in 5½-inch, 20-lb casing. This modification introduces
substantial risks to the mechanical integrity of the motor.
And even after removing the lock plates, 4.56-inch OD
motors can get stuck in the well, particularly if there are
any deviations in the wellbore trajectory.
Also, these larger motors are often “turned down,”
which means the housing is reduced from a 4.56-inch
OD to up to a 4.40-inch OD by shaving material from
the housing. This modification causes significant
reliability concerns because the compression on the
motor’s stator lamination stack is relaxed, which can
result in spinning laminations and an electrical short.
Even without the lock plates and material shaved from
the housing, 4.56-inch motors will not fit in 5½-inch,
23-lb casing.
Another concern with 4.56-inch OD motors in
5½-inch, 20-lb casing is fluid velocity. Tighter clear-
ances between the motor and the casing cause the fluid
velocity to increase. If the fluid flow rate is below 2,000
bbl/d, there is no issue, but higher flow rates, which
are common early in the life of an unconventional well,
create fluid velocities that can result in erosion of the
motor’s metallurgy.
The other traditional ESP option to produce wells
completed with 5½-inch, 23-lb casing is 3.75-inch OD
motors. With this option, operators are forced to make
a choice between production and equipment run life. It
takes a triple-tandem, 3.75-inch configuration—or three
April 2020 | E&P | HartEnergy.com

motors connected together—to get even close to the
same horsepower rating of one 4.56-inch OD motor. As
a result, production rates are compromised.
Often, operators will “push” 3.75-inch OD motors
beyond their safe operating limits in an effort to gener-
ate more horsepower and, therefore, more production,
but this practice introduces serious reliability concerns.
Also, the additional connections between motors with a
triple-tandem configuration also create greater poten-
tial for electrical shorts.
Fluid velocity is not as much of a concern with 3.75-
inch motors, but the fluid velocity can be too low in
some cases. Adequate fluid flow past the motor is
required to prevent overheating.
Permanent magnet motors
In recent years, operators have been experimenting with
permanent magnet motors (PMMs), which are available
in smaller diameters, but that option comes with its own
set of issues. PMMs require a special surface control
HartEnergy.com | E&P | April 2020
ARTIFICIAL LIFT
system to monitor and adjust the downhole ESP system
operation, so operators can’t use their existing surface
equipment. The surface control system accounts for
50% or more of the total cost of an ESP, making systems
using a PMM a costly option.
Plus, PMMs introduce a significant safety risk versus
standard ESP motors. When an ESP shuts down, there
is typically backspin in the pump until the fluid column
reaches a point of equalization. For typical ESP systems,
this is not an issue because standard induction motors
create very low voltage during backspin. However, due
to the magnets in the motor rotors, PMMs essentially
become a generator during backspin, creating lethal volt-
ages that pose a significant danger to field personnel.
Based on the limitations of all the existing ESP
options, it is no surprise that shale operators have been
seeking a better solution for slimline unconventional
wells—one that does not require a trade-off between
space in the wellbore and horsepower and does not
jeopardize the reliability of the system.
47
 ARTIFICIAL LIFT
The AFFIRMED PowerFit motor design was validated via extensive
laboratory testing in the Apergy motor dyno apparatus.
(Source: Apergy)
Meeting small-diameter challenges
Late in 2018, the Apergy UNBRIDLED ESP systems
motor engineering team initiated a project to design
and build a submersible induction motor to meet the
challenges of small-diameter unconventional wells. The
goal was to create a motor that provides the same horse-
power as 4.56-inch motors but with a smaller-diameter
housing that allows adequate clearance in 5½-inch, 20-lb
and 23-lb casing.
48
The Apergy AFFIRMED PowerFit motor features
an optimized electromagnetic design that delivers
more than 200 hp from one motor while also deliv-
ering better efficiency as production rates decline
and limiting motor winding temperature rise.
The smaller size of the motor eliminates the need to
modify equipment and mitigates potential erosive wear
from extreme fluid velocity up to 4,500 bbl/d. The
motor size also leaves room in the wellbore to install
tech wires for sensors below the motor and run chem-
ical injection capillary tubing to the base of the motor.
This is an important feature because scale buildup is a
major issue for equipment installed in many shale wells.
The motor design features
• Optimized rotor-shaped bars to maximize horse-
power output; properly allocated tooth width bal-
ances electric loading versus magnetic loading;
• Parallel stator tooth to ensure uniform flux
density;
• Balanced sizing of the stator slot area versus
stator teeth to balance electric loading versus
magnetic loading;
• Generous stator back iron to prevent excessive
flux density, which reduces iron loss/heat in the
stator OD region; a good thermal circuit effi-
ciently conducts heat out of the motor, keeping
the stator OD cooler to extend motor life; and
• Successful saturation of stator and rotor
bridges to eliminate flux leakage and increase
power output.
After the motor design was completed, the team
conducted extensive testing in the Apergy motor dyno
apparatus to validate the model based on IEEE 114
and IEEE 252 standards. The testing criteria included
a no-load test to measure fluid and friction loss, core
loss and steel saturation; a voltage variation/load vari-
ation to measure optimal voltage versus load; a per-
formance test to quantify horsepower output, speed,
torque, power input, efficiency and power factor; and
a temperature rise test to measure the average motor
winding temperature. The laboratory tests validated the
parameters outlined in the motor model. These include
208 hp, 82.5% efficient from 100% to 50% loaded and
400 F maximum motor operating temperature.
Following testing, Apergy conducted 10 field trials,
primarily in 5½-inch, 23-lb casing, which is the most
challenging application. Nearly all the trials used tan-
dem motors to generate more than 400 hp. When the
motor was commercially launched in January 2020, the
field trials had achieved more than 2,000 days of run
time with zero issues related to motor operation.
April 2020 | E&P | HartEnergy.com
 ARTIFICIAL LIFT

More production, less intervention

Digital intelligent artificial lift technology simultaneously enables
enhanced recovery from dual-string gas-lift wells.

Abdel Ben Amara, Stephen Faux and In areas where dual completion wells have been used,
Graham Makin, Silverwell attempting gas lift from both strings has often been
extremely difficult, so much so that some operators

M ost of the world’s gas-lifted wells are under-opti-

mized due to changing reservoir conditions and
fluid composition. Gas-lift valve (GLV) recalibration
have reduced the use of this otherwise highly cost-effec-
tive practice.
The combined effect of a lack of data and the need
is required with changing conditions, and an exces- for costly intervention creates production limitations
sive design safety margin is necessary so that the valve and explains why the majority of gas-lifted wells, par-
change remains valid for as long as possible. Further- ticularly dual-string wells, routinely operate in a non-
more, when adjusting gas-lift parameters, it is not easy optimal state.
for operators to make data-driven
decisions to ensure continuous More data, less uncertainty
maximized production. Silverwell’s Digital Intelligent
Gas lift is one of the most widely Artificial Lift (DIAL) system was
used forms of artificial lift in developed to optimize production
the Middle East and Asia-Pacific from single- and dual-string gas-lift
regions. Gas is injected as deep wells. The system consists of multi-
as possible in the well to increase ple port tubing retrievable gas-lift
drawdown on the formation, hence units placed at each gas-lift station.
increasing production by reducing It enables the choice of injection
the weight of the column of pro- depth, injection rate and unload-
duced fluid. ing sequence to be controlled from
Despite being extremely com- the surface. Real-time optimization
pliant, conventional gas-lift tech- is possible as pressure/temperature
nologies can be vulnerable to sig- data provide accurate flowing gra-
nificant challenges. The risks and dient curves.
costs associated with intervention It has been estimated that DIAL
for offshore and onshore wells increases production by approxi-
can be high, while climate and mately 20% for single completion
remote locations can represent wells and more than 40% for dual-
additional barriers to production DIAL dual-string gas-lift completions are string gas-lifted wells.
optimization. Other limitations designed to proportionally distribute the Plans have been developed with
include uncertainties around the injection gas to ensure the optimum production operators to pilot the first world-
effective monitoring and mea- from both strings. Downhole tubing and wide deployments of dual-string
surement of gas-lift efficiency and casing pressure data at depth determine lift digitally controlled gas-lift opti-
intervention for valve deployment effectiveness. (Source: Silverwell) mization systems in onshore and
to optimize production. offshore dual completion wells.
These challenges are amplified with dual completion The approach increases safety, efficiency, operability
strings with fluctuating casing pressure, unpredictable and surveillance.
temperatures and an inability to individually control
injection rates. The string dedicated to the formation Production optimization system
with lower productivity and reservoir pressure tends to The DIAL system consists of multiple gas-lift units that
rob gas from the other string. can each include up to six individually controlled inde-

50 April 2020 | E&P | HartEnergy.com

 ARTIFICIAL LIFT

pendent injection ports with a large spectrum of gas Dual control

injection rates, which can be varied by opening or clos- Dual completion wells are analyzed in onshore and
ing ports in any combination. offshore operating environments to validate the system.
DIAL is controlled by a surface control system con- In both applications, both strings share the same casing
nected to all units in a multidrop configuration through and gas-lift supply pressure; therefore, it is extremely
a single downhole electrical control line—a tubing difficult to allocate the right amount of gas to each spe-
encapsulated cable—typically with a one-fourth-inch cific string, especially as the zones they are producing
diameter. The units are spaced using maximum avail- typically have different reservoir parameters.
able surface gas injection pressure. The opening of the DIAL allows control of the gas injection rate directly
ports is digitally controlled and not impacted by down- at the point of injection into the production tubing.
hole pressure or temperature. The opening and closing of downhole valves are con-
The surface control system is equipped with a trolled from the surface and allow them to be kept in
Modbus RS485 connection to link it to a SCADA-type assigned positions despite changes in casing pressure.
control and data acquisition system, allowing operators Pressure sensors, together with the Cv values of the
to monitor and operate the DIAL system remotely in valves, allow the calculation of gas injection rates at
real time. depth. These can be adjusted by opening more or
Each DIAL unit is equipped with sensors measuring fewer valves at a given DIAL unit. The injection rate
tubing and casing pressures and a temperature sensor. to each string can be independently controlled so that
Tubing and annulus pressure gradients and tempera- production from both strings is continually optimized,
ture gradients are available in real time because DIAL enabling the efficient gas lift of both strings.
units are installed at different depths.
As pressure sensors are available
on both tubing and casing sides, ΔP
across the valves can be measured and
downhole gas injection rates can be
calculated by using the flow coeffi-
cients (Cv values) of the valves being
used. Downhole gas rate can then be
compared to surface injection rates
to ensure all gas injected on surface
is used at the point of injection and
there are no leaks.
By linking the digital gas-lift system
to a dedicated software program,
processes such as well unloading,
production optimization, gas usage
optimization and troubleshooting can
be automated under the supervision of
the operator.
The ability to install several DIAL
units at different depths along the
tubing string and the large spectrum
of gas injection rates available for each
unit allow the design and implemen-
tation of a digital gas-lift system for
the life of the well. This eliminates
costly interventions. Controlling the
valves downhole without pressure or
temperature dependence also allows
efficient operation in both single and
dual completion wells.

HartEnergy.com | E&P | April 2020 51

 ARTIFICIAL LIFT
LONG STRING (LOWER ZONE)
Depth vs. Pressure (D vs. P)
SHORT STRING (UPPER ZONE)
Depth vs. Pressure (D vs. P)
In this generic example, there are two DIAL units on each string. Each string can be produced at an optimal rate with different lift gas
injection rates. (Source: Silverwell)
Enhanced lift efficiency
The only design requirement is the selection of setting
depth for each DIAL unit. Pressure drops are not required
between each valve, and full casing pressure can be used
from top to bottom when spacing the units, resulting in
less stations required and/or a deeper injection point.
Improved production management
The gain realized by the DIAL system in dual gas lift is
significant. Modeling of multiple dual-string applica-
tions has demonstrated net present value in the tens of
millions of dollars onshore. Opex is reduced because no
well intervention is required. HSE risk is reduced and
lift gas allocation is more efficient. Many dual and single
completion wells have been identified that could benefit
52
Production vs. Injection (P vs. I)
1,240 STB Oil/Day
1,000 Mcf/d
Production vs. Injection (P vs. I)
1,325 STB Oil/Day
1,100 Mcf/d
from this technology onshore, with similar figures esti-
mated for offshore wells.
Conclusion
The implementation of the first worldwide DIAL pro-
duction optimization system available for dual-string
wells represents a significant development in gas lift. It
will allow the elimination of inefficiencies inherent to
gas lifting with conventional pressure operated valves
and enhance well profitability.
At the time of writing, installations are planned for both
onshore and offshore. A closed loop automation protocol
enabling automated downhole adjustment of gas-lift rate
and depth, based on the well condition, is in development
to increase the overall efficiency of the system.
April 2020 | E&P | HartEnergy.com
 OFFSHORE: SUBSEA PROCESSING
& PRODUCTION
Shining a light on the entire well
A downhole wet-mate system brings fiber-optic sensing to the pay zone, paving the way for
optimized well operations and fully informed field development decisions.
Thomas Scott, Baker Hughes
O ffshore operators know the value that real-time
well monitoring brings to making more informed
decisions regarding production optimization, risk
reduction and maximizing returns. But when it comes
to reliably collecting the data and transmitting those to
the surface, operators have been stymied by effectively
deploying and connecting lines across long distances
downhole. As a result, production decisions were tradi-
tionally made with limited knowledge of what was going
on in the pay zone.
This is changing, as the industry has reached an inflec-
tion point in the adoption of fiber-optic technology, a
downhole distributed sensing technology that gives oper-
ators a detailed, real-time view of their reservoirs. The
technology works by shooting light down a fiber-optic
line deployed with the well completion. Changes in tem-
perature, pressure and acoustics in the well distort the
light path in the fiber. The degree of distortion is then
analyzed at the surface to provide a real-time interpreta-
tion of the well’s performance downhole.
While fiber-optic systems have been around for
decades, their data-gathering capabilities were limited
due to reliability and monitoring techniques. In addi-
tion, most deepwater wells are designed with multi-trip
completions, which present challenges for installing
fiber down to the lower part of the completion and into
the pay zone—where data are needed most.
High-definition monitoring from toe to surface
Baker Hughes has developed a downhole technology
that gives operators the flexibility to deploy multiple
lines in multi-trip completions all the way to the toe of
the completion. The company’s SureCONNECT intelli-
gent wet-mate system enables downhole connection and
reconnection of the upper and lower completions with
hydraulic, electric and fiber-optic lines.
The system is modular in design with a wet-mate that
houses up to five connector channels. Each connector
channel supports two hydraulic lines, one electric
line or one six-fiber line, which allows operators to
choose the lines they want to include without the need
54
The SureCONNECT system gives operators the flexibility to
deploy multiple lines in multi-trip completions all the way to the
toe of the completion. (Source: Baker Hughes)
to custom-configure a new system each time. The sys-
tem also includes a carrier with an orienting guide that
ensures proper connection, even in challenging down-
hole conditions. In addition, the system is designed
to be compatible with other downhole tools such as
remotely actuated sliding sleeves, which affords a stan-
dardized intelligent completion design.
With the wet-mate system, operators can collect and
analyze the kind of data that were always promised from
distributed measurement. This step change in sensing
and data acquisition is akin to going from shining a
spotlight on one part of the well at a time to getting a
high-definition, 4K movie playing across the entire well-
bore. Such a detailed view gives operators the ability to
make data-driven decisions that optimize reservoir per-
formance and actively mitigate risks.
The wet-mate system lets operators perform upper
completion workover operations while leaving the lower
completion—and all intelligent completion compo-
nents—in the well. Eliminating the need to retrieve
the lower completion during workovers significantly
decreases rig time, safety risks and equipment costs.
Proven in the field
The intelligent wet-mate system was developed in close
collaboration with BP, which needed a robust, real-
time monitoring system for its remote offshore wells.
Specifically, the operator wanted to use fiber optics to
improve its understanding of the complex, intersecting
April 2020 | E&P | HartEnergy.com
 OFFSHORE: SUBSEA PROCESSING
& PRODUCTION

fracture network in its massive aid in navigation through the

Clair Ridge Field off the coast openhole section. XACT’s live
of Scotland. The data obtained data transmission confirmed
will improve placement deci- the amount of compression
sions for new wells while boost- at the running tool, which
ing reservoir recovery through allowed the set down weight
better utilization of sliding to be adjusted at the surface
sleeve and zonal isolation tools. and enabled the tool’s effi-
In addition to providing in cient release.
situ pressure and temperature The operation successfully
data, the wet-mate connected linked six fiber-optic strands
lines can monitor well integrity, between the upper and lower
sand control effectiveness and completions nearly 1 mile
artificial lift performance. The below the seafloor, affording
system’s remote monitoring real-time monitoring across
capabilities reduce the need for the entire wellbore for the life
conventional well intervention of the well. It also linked two
surveillance operations such as lower completion zones with
production logging. For BP and SureVIEW P/T gauges for con-
other operators, minimizing tinuous monitoring of well data
offshore interventions reduces and distributed temperature
opex and limits travel for inter- sensing data.
vention crews to and from the The operation was completed
platform. Overall, the system The SureCONNECT system subassembly, with Premier without any HSE incidents
helps optimize the total expen- feedthrough packer, SureVIEW CoreBright fiber and and about two weeks ahead of
diture for the life of the well. pressure/temperature gauges, is picked up prior to schedule—a 50% reduction in
BP installed the first intelli- running in the hole with the lower completion. completion time from the pre-
gent wet-mate system in a pro- (Source: Baker Hughes) vious install. Having access to
ducing well offshore Scotland. the pressure/temperature data
Baker Hughes intelligent production systems engineers in this injector well will give the operator the ability to
partnered with the operator to coordinate all offshore interpret and compare injection data throughout their
operations. The Baker Hughes XACT downhole acous- complex reservoirs.
tic telemetry service afforded real-time monitoring of
run-in parameters and helped navigate through narrow What’s next
tolerance openhole sections to successfully install the Future plans include moving from remote data col-
lower completion with no HSE issues. After cleaning lection to remote actuation and control. With data
the wellbore and landing the upper completion, the collected across the reservoir, operators will be able to
SureCONNECT system successfully mated to provide selectively segment their wells into zones that can be
optical continuity from toe to surface. The operator controlled independently.
confirmed connectivity between the lower and upper In a producer well, this might mean remotely actuating
completions on all six fibers. and producing out of multiple zones that previously were
A fiber-optic surface interrogation unit was installed only accessible from two or more wells, thus eliminating
to transfer the data to the operator’s SCADA system. a well and delivering significant capex savings. For an
Personnel could then read pressure and temperature data injection well, remote actuation might translate to better
from the fiber-optic gauges and review distributed acous- injection control to ensure the desired sweep efficiency.
tic and temperature sensing traces that were recorded Continuing to work with operators like BP will be crit-
throughout the entire length of the completion. ical to developing these innovations in fiber-optics-aided
The operator deployed the wet-mate system in a sec- monitoring and control. These developments promise
ond well, this time a water injector with four separate production optimization benefits to operators around
zones in the lower completion. As before, the XACT the globe, whether their assets are on the seafloor, an
service was deployed as part of the running string to offshore platform or on land.

HartEnergy.com | E&P | April 2020 55

 OFFSHORE: SUBSEA PROCESSING
& PRODUCTION
Expansion of subsea operations
with pipeline bundling
Equinor’s Snorre Expansion Project pipeline bundling system sets
records for diameter, length and weight.
Thomas Murdoch, Subsea 7
T he Snorre Field located in the Tampen area of the
Norwegian Continental Shelf is a giant reserve that
has so far produced 1.4 Bbbl of oil and gas since August
1992. To add additional volumes from the Snorre Field,
the Snorre partners decided to sanction the Snorre
Expansion Project (SEP).
As a part of the project, Equinor signed a contract
with Subsea 7 in June 2016 that encompasses three
pipeline bundles (East, West and North) and 31 spools,
linking six new drilling templates with the Snorre A ten-
sion-leg platform.
Following a comprehensive marine study, Subsea 7 was
awarded the contract to provide engineering, procure-
ment, construction and installation in December 2017.
The scope of work involves the provision and installation
of the pipeline bundle technology with midline struc-
tures, which contain all gas and water injection flow-
lines, chemical and hydraulic service lines, and control
umbilicals necessary for full field operation (Figure 1).
FIGURE 1. Offshore operations continue on Equinor’s SEP. (Source: Equinor)
56
More than $2.36 billion is expected to be spent on
raising the recovery rate from 46% to 51% with opera-
tions due to begin in 2021.
Milestones
For more than 40 years, Subsea 7 has installed 82 pipe-
line bundle systems that essentially carry and contain
any combination of pipelines and umbilicals. Individual
components are terminated in towheads where mani-
folds are housed. Such an integrated formation delivers
incremental capex savings for the client.
Largely resourced, engineered and managed from
Aberdeen, U.K., fabrication and testing of the three
bundles began in mid-2018 at the company’s Wester
fabrication site in Wick, U.K. The West bundle was the
first to be installed in water depths of between 300 m
and 380 m in July 2019. The remaining two bundles
(East and North) with spools and tie-ins will be trans-
ported using Subsea 7’s Controlled Depth Tow Method
and connected by the middle of the year. Including sig-
nificant intermediate structures, the total length of the
three bundles is more than 20,000 m. At 7.6 km long,
the West pipeline bundle is one of the
longest ever executed and currently
possible at the Wester site.
Likewise, the East bundle system has
achieved notable milestones being the
largest in diameter to date (58 inches)
and the heaviest installed by the global
contractor at 12,600 mt. It also contains
four pipe-in-pipe insulated production
flowlines—a first for the company. The
total tie-in spool length is equal to 3.4
km of pipe spools, 7.6 km of tubing
spools and 3.7 km of flying leads.
Through the Subsea Integration
Alliance, Subsea 7 and OneSubsea
also supplied the complete subsea
control system and topside elements,
including the electrical power units
and the subsea gateway to control the
bundle system.
April 2020 | E&P | HartEnergy.com

The SEP includes massive midline towheads to tie
into the midline drill centers across each of the three
bundle systems. For example, to land the leading tow-
head of the West bundle beside a drill center, about 2
km of bundle carrier pipe had to be deflected through
a 2,000-m radius. For safe and efficient tow and instal-
lation, each towhead had two buoyancy tanks attached,
which were removed on reaching its destination.
Space, safety and sustain-
ability savings
As an already heavily congested
field, the use of Subsea 7’s pipeline
bundle reduced the installation
footprint, thereby saving space and
providing improved access for drill
rigs compared to traditional pipelay
methods. With reduced installa-
tion time offshore, this equates to
reduced operational risk.
As the field has been in existence
for more than 20 years, there is a
number of crossings for the bun-
dles to safely bridge and a largely
soft clay terrain to install each of
the three bundle systems. This led
to the application of a framework
for tolerably mobile foundations in
the Norwegian trench. As the field
is already equipped with permanent
reservoir monitoring cables, trench-
ing was not possible. Likewise, as
the carrier pipe has a large diam-
eter and is designed for impact, FIGURE 2. LinerBridge connector technology is
there was no need to place about the world’s first all-polymer subsea connector
450,000 mt of protective rock. This qualified by DNV GL. (Source: Subsea 7)
saves considerable procurement
and material costs as well as further disruption to the
crowded seabed.
The Department of Environment, Food and Rural
Affairs Select Committee in the U.K. and the Norwegian
Oil & Gas Association were both consulted to analyze
the potential environmental impact of the project and
advise where energy consumption and emissions could
be reduced.
The drive to invest and implement new technol-
ogy was also key for the project to reduce costs and
environmental impact. For instance, electrification
allowed for smaller towhead sizes and reduced trawl
loads, and therefore significantly less hydraulic fluid
was needed subsea.
HartEnergy.com | E&P | April 2020
OFFSHORE: SUBSEA PROCESSING
& PRODUCTION
Eighteen subsea electronic actuators also will be per-
manently deployed. These are capable of 2,700 newton
meters of torque controlled by the six communication dis-
tribution units housed in five different towheads. Another
world-first is the use of an all-polymer subsea connector
within the pipeline bundles. Developed by Subsea 7, the
Swagelining integrated polymer lining system now fea-
tures LinerBridge connector technology, which increases
the cost-effectiveness of polymer lined pipeline systems.
This represents a step change in
options for tackling costly internal
corrosion of pipelines and risers
while creating a robust and fully
integrated polymer barrier within
the pipeline system (Figure 2).
Future-proofing
and potential
From the outset of the FEED stage,
the bundles were designed to pro-
vide a platform for digitalization
in future years. The towheads also
were designed to allow data trans-
fer via fiber-optic cables to auton-
omous inspection vehicles (AIVs).
This has essentially created the
long-term vision for the towheads
to become singular docking sta-
tions for underwater intervention
drones with the Snorre towheads.
Additionally, fiber optics can pro-
vide the ability to measure the tem-
perature in the bundle annulus,
along with providing acoustic leak
detection and functionality.
With the aim of significantly
reducing opex, as well as min-
imizing environmental impact, industry leaders are
embracing the future value of pipeline bundles as hosts
for autonomous subsea vehicles. These drones can
potentially be the resident eyes and ears on the seabed,
reducing the need for a field support vessel to oversee
all inspection, repair and maintenance activities.
i-Tech 7, Subsea 7’s life-of-field business unit, has
been actively developing its AIV capability to support
and maintain the integrity of subsea production assets
for more than two decades.
Installation of the West bundle has successfully taken
place, and the towhead load-out and installation of the
North and East bundles, spools and tie-ins are expected
to be completed in late 2020.
57
 digital solutions
DRONES
How smart solutions can resolve the
industry’s methane leak woes
New ground- and drone-based technologies use machine learning for real-time
monitoring of methane leaks in oil and gas fields.
Faiza Rizvi, Associate Editor
A mid an ongoing worldwide campaign against global
warming and calls for a reduction in carbon emis-
sions, methane management has become one of the
primary concerns of the oil and gas industry. Several
companies, including oil majors, have committed to
net-zero emissions and are seeking digital solutions to
reduce greenhouse gas emissions. According to a 2019
report by EDF and Accenture Strategy, the deployment
of digital tools and systems across oil and gas operations
can help companies accelerate the process of under-
standing and preventing methane leaks. The report also
stated that innovations such as automated asset manage-
ment, predictive maintenance and Industrial Internet of
Things could help prevent an annual loss of $34 billion
in leaked, vented and flared methane.
Drone-based monitoring programs have emerged as a
strong potential solution to reduce emissions by provid-
ing a better understanding of where leaks occur and at
Lumen is an a methane monitoring technology that provides operational
efficiencies and environmental benefits to operators. (Source: Baker Hughes)
58
what magnitude. Drones have become an integral part
of methane monitoring operations, replacing conven-
tional methods of inspection in the oil and gas industry
over the last few years due to their increasing usability
to drive operational efficiency, according to a report by
GlobalData. Drone manufacturers are collaborating with
oil and gas companies to develop custom drone plat-
forms that can be equipped with data collection technol-
ogies for obtaining real-time insights, the report stated.
Digital solutions
In January 2019, Baker Hughes released a digitally inte-
grated platform called Lumen, which was developed
to monitor methane emissions from oil and gas opera-
tions. Lumen includes a host of technologies to detect
methane leaks, which are capable of live-streaming data
from sensors to a cloud-based software dashboard for
real-time results.
“Lumen’s tagline is making the invisible visible, which
is essentially what Lumen does,” Jason Roe, CEO of
Avitas, a Baker Hughes’ venture, told E&P. The plat-
form consists of two connected formats—
Lumen Terrain for ground-based solar-pow-
ered wireless sensor network and Lumen Sky
for over-air monitoring to ensure methane
emissions are monitored as efficiently and
accurately as possible.
“[Lumen Sky] gives us the ability to offer
flexible solutions to clients where we can
offer very detailed surveys of an area. Lumen
Terrain is a ground-based system, where we
have point sensors on the ground creating a
‘smart digital mesh’ to enable communica-
tion between sensors and a base station for
providing basic information such as wind
direction,” Roe explained.
According to a company press release,
once a leak is detected, Lumen uses pro-
prietary algorithms and machine learning
to provide methane concentration data,
location and rate of the leak, which can be
accessed in real time, giving operators the
April 2020 | E&P | HartEnergy.com
 digital solutions
DRONES
ability to make quick and reliable decisions to save
time, costs and environmental damage.
Avitas also is developing new features for Lumen Sky.
As Roe explained, in addition to getting the recordings
and imagery through the use of computer vision and
artificial intelligence (AI) solutions, the new feature will
provide automated detection and quantification, which
automate the manual work of the traditional drone
inspection using an optical gas imaging camera.
Explaining the motivation behind the development
of Lumen, Roe said it is difficult to deal with a prob-
lem without finding a way of inspecting, monitoring or
measuring its magnitude. He cited statistics that 40% of
the oil and gas industry’s carbon footprint comes from
venting, flaring and fugitive emissions, which the energy
companies need to address amid the industry’s chang-
ing dynamics. The energy sector’s social licensing to
operate is being challenged with public, regulatory and
environmental scrutiny, which shows the industry needs
to be proactive in managing carbon emissions, Roe said.
Areas of operation
Avitas provides automated and remotely monitored
inspections for industrial infrastructure, integrating
cameras and sensors with autonomous aerial or ground-
based sensors. Its inspection platforms offer repeatable
visual inspection, coupled with advanced computer
vision analytics for added operational insights.
The company’s core competencies include data ana-
lytics and the application of AI, computer vision and
machine learning.
“We are a smart inspection and monitoring solutions
provider. We are generally focused on asset integrity
and the inspection and monitoring of assets, but we
use a variety of methods to do this and that’s where the
‘smart’ comes in,” Roe said.
In addition to inspection services, Avitas’ smart solu-
tions combine the ability to fuse large historical datasets
with advanced analytics and deep learning models to
enable predictive analytics and risk-based decisions.
These models are stored to process inspection data in
real time and retrain deep learning models to adapt to
new use cases rapidly.
Roe explained that being a Baker Hughes venture,
Avitas enjoys several benefits such as having access to
Baker Hughes’ resources while keeping its identity and
maintaining the entrepreneurial spirit with the oppor-
tunity to grow and run autonomously.
“Being completely owned by Baker Hughes, we have
the ability to plug into its existing infrastructure, sales
forces and the subject matter expertise,” he said.
60
Automating inspection
Traditional measurement practices can be subjective,
inaccurate and inefficient, putting companies at risk of
dangerous, damaging and costly leaks. Roe highlighted
three clear and immediate benefits to operators from
automating their inspection processes.
It is a safer way to operate. Often, asset inspection at
well sites can be dangerous to human lives while access-
ing difficult-to-access inspection points and without
advanced knowledge of any existing emissions.
“Using drones also reduces the windshield-time,
which means it reduces the volume of trucks on the
roads as you can cover more ground with less people,”
Roe said.
Automated inspection reduces costs and increases
efficiency. Compared to an individual carrying out a
manual inspection, the efficiency of drone inspection
using software analytics is three to five times greater,
Roe explained.
Finally, using digital tools for inspection provides an
environmental benefit.
“Increasing the efficiency of inspecting processes
enables operators to focus more of their valuable time
on fixing problems instead of trying to identify them.
This and the reduction of trucks on the road can add
immediate environmental benefits,” he said.
Current projects
Avitas operates mostly in the U.S. for aerial inspection
but plans on leveraging the global footprint of Baker
Hughes for local and international expansion. The
company has provided inspection processes for several
customers in the Permian, Eagle Ford and Denver-Jules-
burg basins. For one customer, Avitas executes well
pad inspections, demonstrating the ability to efficiently
survey, run analytics and produce automated reports by
the next morning, which are reviewed at staff meetings
to outline daily plans. As Roe pointed out, these reports
highlight a variety of issues that can impact safety, pro-
duction or the environment.
In Prudhoe Bay, Avitas used a massive database of an
operator’s historical operational, inspection and envi-
ronmental data and it applied machine learning algo-
rithms and physics-based models to provide predic-
tions on wall loss and corrosion under insulation on
their pipeline network, among other things. Avitas’
software also provided detailed analysis such as high
and lower risk areas and percentage of certainty of an
issue occurring at a particular time, which the opera-
tor used to refine its inspection programs and address
areas of concern.
April 2020 | E&P | HartEnergy.com
 operator solutions
OPERATING EFFICIENCY
Onward and upward: cloud geoscience
databases for the new decade
Companies improve efficiency in asset evaluation, well planning and more with a
cloud-based system.
Stephen Clark, Rogii
M assive technological advances over the last 10
years have vastly increased the value of data across
society; this is as true for upstream oil and gas as it is for
everything else. The rise in sophisticated data analytics
and improvements in available analytics platforms has
allowed geoscientists to collect, integrate and analyze
more data than ever before. When combined with collab-
orative cloud environments, both geoscientists and data
analytics experts have been able to maximize efficiency
and lessons learned through real-time data insights and
24/7 access to multidisciplinary data. By taking advantage
of cloud migration, geoscience teams have found unprec-
edented improvements in the efficiency of asset evalua-
tion, well planning, geosteering and completions analysis.
There are many lenses through which cloud environ-
ments, like Rogii’s Solo Cloud, are demonstrating their
value in the oil and gas industry, with geoscience and well
planning being among the most prominent.
Geosteering prior to cloud technology
Geologists frequently require at least two different
software suites to properly plan, land and successfully
geosteer a lateral. Preliminary well planning generally
involved a software suite where they could compare seis-
mic horizons as well as tops from nearby wells to select
an appropriate kickoff point, landing point and lateral
trajectory. During the vertical and curve phase of drill-
ing, it was frequently necessary to jump back and forth
between the geosteering software and mapping software
to evaluate potential landing point changes. Addition-
ally, communicating the justifications for changes fre-
quently required exporting a project file and emailing
it so others could see the interpretation. It was the same
for communicating changes to lateral plans if the geol-
ogy didn’t come in as expected. Most companies devel-
oped various workflows that tried to smooth out this
process, but there was never a truly collaborative work-
space outside of having full, in-house operations centers
where all geosteering and well planning were done.
62
Once the well reached target depth, the final geo-
steering interpretation usually came in the form of a
project file specific to the geosteering software used, a
PDF or slide deck with a handful of screenshots, and
a few cherry-picked statistics all wrapped up in a static
report trying to represent a dynamically drilled well.
This process worked, but it usually required a lot of
back and forth between geology, drilling, engineering
and management for everyone to be on the same page.
Modern data analytics was in its infancy at this point,
so the compatibility of the different software and data
types was not as critical an issue.
Cloud migration
Rogii sought to create the first digital collaborative
workspace designed from the ground up for geosteer-
ing, well planning and post-drill analysis applications.
Solo is a cloud-based workspace and database in which
projects (previously stored locally) can be accessed
and worked on by multiple users from different disci-
plines at the same time. Any changes made by users are
instantly synced back to the global cloud project in real
time, allowing other users to see the changes without
having to transfer the entire project back and forth.
Solo Cloud projects are stored on a highly secure server
where data are encrypted in transfer and at rest. With
the introduction of the Solo Data Manager, users can
easily add or remove data to smaller virtual projects
from their global database with changes being synced
across the entire database automatically, enabling a
dynamic work environment.
All data are easily accessible for the entire organiza-
tion when needed. Solo can be scaled to any size orga-
nization through efficient cloud database management
and customized user rights and privacy. Cloud-based
data storage also enables any stakeholder involved in
the well to access the most recent geosteering update in
real time from any web-enabled device (phone, tablet
and computer) eliminating the need for static updates.
Collaboration between geosteerers, geologists and any
other authorized individuals is as easy as logging into
and working autonomously on the same project to
April 2020 | E&P | HartEnergy.com
 operator solutions
OPERATING EFFICIENCY

visualize and edit interpreta-

tions simultaneously.

Case studies
Solo Cloud geosteering
collaboration has already
been embraced by com-
panies ranging from
mid-sized independents
to major operators. Keith
Rivera and Adam Martin
with Noble Energy both
described the transition
and experience as “insanely
positive for us.” Rivera and
Martin use a third-party
vendor’s real-time center
to aid in geosteering and
appreciate being able to
work in the same project (Source: Rogii)
with them concurrently.
“One of the biggest things that helps us out is project
setup; we can set up a well exactly as we want to set it
up. No back and forth,” Rivera explained.
Once it is set up, the ops personnel and/or vendors
can access the well directly in the cloud and get started
immediately. During the drilling process itself, the
cloud-based environment has significantly improved
their ability to integrate all available offset well data to
make the most informed decisions possible.
“We’re using it on the fly to compare offset wells that
intertwine through landing,” Martin said.
They went on to describe the efficiencies of having
everyone able to work in the same project to review
and monitor a well’s progress in both the well planning
phase and drilling phase. Prior to cloud migration, both
data and project files had to be emailed back and forth
every time a decision needed to be made. Solo’s real-
time features have eliminated cumbersome and static
processes of decision-making.
With benefits ranging from the office to the well site,
Stefan Wieclawek with NAL Resources said, “Not only
has the quality of geosteering increased, but we are able
to make decisions for future wells with greater accuracy
and confidence.”
The introduction of Solo has resulted in significant
changes to the daily workflows of wellsite geologists
and how they interact with both development geolo-
gists and others.
“I no longer must carry paper files around or stop the
rig during drilling to assess the stratigraphic position of
the wellbore. All pieces of valuable decision-making infor-
mation are viewable in Solo,” Wieclawek said. “The well-
site geologist posts a target line on the geosteering plot,
and I evaluate the steer and either agree or make a slight
change to the target line before the amended well path is
handed over to the directional drillers.”
These new workflows have resulted in drastically
improved efficiencies in the communication chain.
“I would estimate a 60% reduction in lengthy conver-
sations,” Wieclawek said.
When combined with the Solo WebViewer app,
authorized individuals can check in on the status
of their wells from any web-enabled device, which
Wieclawek said has resulted in a drastic increase in the
response time to lithology changes.
Technology for the new decade
Entire geoscience workflows and data management
practices are being reconsidered as the extensive bene-
fits of cloud-based data management are discovered. It is
clear that collaborative databases have a substantive
impact on the way wells are designed, executed and ana-
lyzed. Rogii’s Solo Cloud continues to be developed spe-
cifically for the oil and gas industry to revolutionize
workflows of multidisciplinary teams industrywide to
take full advantage of what modern IT offers. The ability
to fully access and utilize data in real time will help the
oil and gas industry continue to decrease costs and max-
imize production, enabling it to compete in today’s
global energy era.

64 April 2020 | E&P | HartEnergy.com

Hart Energy IndustryVoice® allows marketers to reach our audiences by enabling them to create and place
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SPONSORED CONTENT

144 Plugs Drilled Out with 1 Bit

– Thousands of Dollars Saved

I n one of the longest horizontal wells ever drilled in

the US with total measured depth over 28,000 feet and
144 stages, an operator in the Utica Basin needed to
streamline its millout procedure to increase cycle time
and begin production faster. Typically, one drill bit is
only able to mill out up to 60-70 plugs per trip requiring
operators to pull the tubing to snub point, snubbing
out, replacing the bit, snubbing back in, and resuming
drilling, which is a time consuming and costly process.
Therefore, a more cost efficient solution for this opera-
tion needed to be identified.
To solve this challenge, Nine Energy Service deployed
its Scorpion™ Composite Plugs. Because these plugs
are specifically designed for complex wells due to their
shorter length and unique construction, the operator
was able to drill out all 144 Scorpion plugs using a
single drill bit. The bit also had visibly less wear after
milling out all 144 Scorpion plugs than it did after
milling out fewer plugs of a different brand previously.
With Scorpion’s average millout time of 10 minutes, the
operator was able to save thousands of dollars, as well as
two or more days by foregoing multiple bit trips.
With Scorpion’s average
millout time of 10 minutes,
the operator was able to
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Drilling longer, more complex horizontal wells comes
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The Scorpion Composite Plug from Nine Energy
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Other features include a scientifically molded construc-
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gle elastomer element segmented backup rings, and
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Scorpion Composite Plug (Source: Nine Energy Service)

Drill bit showed

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HartEnergy.com | E&P | April 2020 65

 operator solutions
OPERATING EFFICIENCY
Transforming operations with
additive manufacturing
The potential rewards of additive manufacturing will ensure its rapid development and
use in the oil and gas industry.
Brice Le Gallo, Sastry Kandukuri and
Simon Ratcliffe, DNV GL
A dditive manufacturing, the more sophisticated
industrial equivalent of 3D printing, may possibly
become the most disruptive technology to source and
use materials in the oil and gas industry. For example,
it could revolutionize the supply of replacement parts
for upstream operators. For the supply chain itself, this
has the potential to invigorate business models with the
integration of just-in-time manufacturing.
The impetus placed on this innovation was evident
at the recent Davos 2020 Summit, where two new white
papers were presented by the World Economic Forum.
Efficiency gains include shorter lead times for sourc-
ing parts and, crucially, less need for storage as digital
design files replace physical stock. By enabling onsite
production, additive manufacturing also could elim-
inate the need to transport some components, thus
helping to decarbonize oil and gas operations.
While the opportunities are clear and have been real-
ized in other sectors, such as aerospace and medicine,
the adoption of additive manufacturing is still in its
infancy to support oil and gas activity.
According to DNV GL’s report “New Directions,
Complex Choices,” 8% of those surveyed view spending
on 3D printing/additive manufacturing as the highest
priority for their business. The comprehensive global
Additive manufacturing presents the oil and gas industry with
opportunities to raise its efficiency and cut its carbon footprint.
(Source: DNV GL)
66
survey of more than 1,000 senior oil and gas profes-
sionals has revealed that nearly three-quarters (72%)
of respondents believe digitalization is critical for their
organization’s survival.
Building trust layer by layer
In November 2017, DNV GL published the first guideline
(DNVGL-CG-0197) for the use of additive manufacturing
in the maritime and oil and gas industries, creating a clear
pathway and systematic processes to assess every param-
eter that will impact the final products. Most recently,
a new guideline provides an internationally acceptable
framework for ensuring the integrity and quality of addi-
tive manufacturing parts for use in the maritime and oil
and gas industries. The guideline was developed as part of
a two-year joint industry project (JIP) involving 20 compa-
nies across operators and the supply chain.
While BP, Shell and Woodside are among the most
widely cited operators taking advantage of additive
manufacturing, the speed of uptake is generally slow,
despite the risk-free insight and financial benefits it may
bring. For example, Shell used 3D printers to prototype
components for its Stones project in the Gulf of Mexico
in 2016. Through the adoption of additive manufactur-
ing, oil and gas companies can shape the technology to
their own purposes while learning from each other and
other industries.
Optimizing design and manufacturing
The key is using digital designs to direct the printing
of physical parts, larger structures or additional layers
of materials. The raw materials include, among others,
plastics and metals, typically supplied as powders and
wires. User-friendly digital platforms can connect files,
machines and users to facilitate the sharing of digital
files within organizations and among their supply chains.
Iterations can be tested rapidly; there is no need for
costly retooling of machines as in car manufacturing,
for example. Driven by digital connectivity and the dis-
tributed manufacturing capabilities of additive manufac-
turing, making equipment and components could shift
away from centralized manufacturing. It could move
April 2020 | E&P | HartEnergy.com
 operator solutions
OPERATING EFFICIENCY
instead to locations exactly or close to where the prod-
ucts will be used, such as on an oil platform, and help
extend the functional life of aging oil and gas assets.
Understandably, for maturing infrastructure,
replacement parts can be difficult to get or make.
Keeping stock for spares that may never be needed
also is expensive. A form of additive manufacturing
could potentially add new material to an eroded area,
extending the life span of that part, thereby reducing
the life-cycle cost of equipment.
A quandary for OEMs
In the oil and gas industry, additive manufacturing also
presents potential challenges and opportunities for the
business models of original equipment manufacturers
(OEMs). One common model is to make and deliver
equipment, then collect after-sales revenue by supplying
spare parts to local or regional resellers. Another is to
supply equipment and keep it running efficiently over a
contracted period.
To recapture market share, OEMs could take advan-
tage of emerging digital supply-chain platform models
to protect their intellectual property rights. They would
supply digital files securely to selected local resellers
equipped with additive manufacturing capability,
thereby reproducing parts legally and safely. This would
reduce the costs of parts and boost their availability.
Software companies are working on these issues using
blockchain technology for auditing the life history of
designs and parts. This can create an immutable regis-
ter of what the part is and if someone is trying to print
a counterfeit product. Artificial intelligence and its sub-
set, machine learning, can help in this area. DNV GL
is among the founding members of the International
Association of Trusted Blockchain Applications, an
EU-backed initiative aiming to create a framework that
also will allow blockchain to flourish.
Research, investment and collaboration
In 2018 the Global Additive Manufacturing Tech-
nology Centre of Excellence opened in Singapore,
where the Approval of Manufacture Scheme launched
(DNVGL-CP-0267).
In June 2019, DNV GL released DNVGL-CP-0291, a
Type Approval program that specified requirements
to obtain, maintain and renew the company’s Type
Approval certificate for the manufacturing of metal
powder and wire feedstock, intended for products made
by additive manufacturing.
A program was completed and a report issued follow-
ing a study to consider the economic viability, technical
68
feasibility and regulatory requirements for the printing
of these parts. This involved 10 ship owners, operators
and ship management companies that are members of
the Singapore Shipping Association. DNV GL devised
an “Additive Manufacturing Potential Matrix” and
assessed the printability for the 100 most commonly
ordered marine parts in Singapore.
Other collaborative initiatives include Phase 1 and
Phase 2:
• Phase 1 of the Digital Warehouse JIP will investigate
qualification of nondestructive testing methods for
additive manufacturing and the effect of heat treat-
ment on corrosion properties;
• Phase 2 of the ProGRAM JIP will focus on develop-
ing requirements for the qualification and produc-
tion of parts by additive manufacturing for the oil,
gas and maritime industries; and
• Phase 1 of the Batch Evaluation Testing JIP will
develop methods to reduce the cost and time to
qualify/certify additive manufacturing parts for mar-
itime and oil and gas applications.
DNV GL also has signed a four-year research col-
laboration agreement with Singapore’s Nanyang
Technological University that supports academic
advances in additive manufacturing for the oil and gas,
maritime and other industries.
Through a framework agreement with Aurora Labs
3D, based in Western Australia, DNV GL will provide
certification services for the company’s unique 3D
metal printers. The company was recently elected as
one of the top five additive manufacturing startups in
the world of nearly 240 firms reviewed.
Action for adoption
While additive manufacturing is still relatively new to
the oil and gas industry, the potential rewards convince
analysts that demand will develop rapidly. According to
market researchers SmarTech Publishing, additive man-
ufacturing is forecast to become a $450 million market
in the oil and gas industry by 2021 and a $1.4 billion
market by 2025. Once the obvious hurdles are over-
come, the likely payoffs for operators and OEMs could
be enormous.
As the technology undergoes rapid advances and as
growth in its use is expected to increase exponentially,
the challenge now is to unify understanding and build a
solid framework to ensure the sector realizes the eco-
nomic and environmental benefits this promising man-
ufacturing technology brings.
References available.
April 2020 | E&P | HartEnergy.com
 shale
SOLUTIONS

Getting to the bottom of extended-

reach lateral challenges
Hydraulically activated completion solutions can reduce risk, lower costs and expedite
bringing wells online faster.

challenges by decreasing risk with interventionless oper-

Travis Harris, Packers Plus Energy Services ation. Combining these toe options with sliding sleeve
completion technology can further expedite comple-

O nce somewhat of a novelty, extended-reach later-

als are now being drilled at a greater pace across
North America. In the Permian Basin, for example,
tion time and bring wells online quicker.

Stimulation challenges
the number of horizontal wells completed with lateral
Plug and perf (PNP) is by far one of the oldest com-
lengths exceeding 10,000 ft has increased by nearly 12
pletion methods. This method predates horizontal
times over the last five years, jumping from 63 in 2014 to
wells and, as such, the wireline deployed in vertical or
813 in 2018. slightly deviated wells relied on gravity for downhole
These longer laterals have provided operators with the
conveyance. In horizontal wells, large volumes of water
ability to complete more stages and achieve greater reser-
are needed to pump wireline perforating guns to depth,
voir coverage with every well, resulting in higher produc-
especially if there are doglegs and tight areas. If for
tion per well. Yet, it has not come without challenges.
any reason the tools get stuck, remedial mechanical or
One challenge is effective stimulation at the toe stages
hydraulic tools require additional fluid.
of the well. Operational challenges and risk arise when
PNP tools also can be deployed using coiled tubing
using tubing-conveyed perforating for the first stage of
(CT). One advantage of using CT for the toe stages is
completion operations. This risk is present by the nature
the ability to continually circulate fluid, which helps
of the extreme distance the tools must travel downhole.
condition the well for smoother conveyance. However,
Although hydraulically activated sliding sleeves were
a significant disadvantage of CT is its reach. Energized
introduced to solve this challenge, reliability has been
fluid, specialized metal-to-metal lubricants and tractors
an issue, and many operators have been forced to run
or agitators can help with the conveyance. However,
multiple sleeves as a precautionary measure.CT can spiral due to cumulative friction when pushing
Packers Plus released a suite of tools to run at the
tools to depth. If CT is pushed too hard, it can kink
toe of extended-reach laterals that address current
or buckle, causing the tubing to become stuck or part.
For long wells, these restrictions
NUMBER OF WELLS COMPLETED IN THE PERMIAN BASIN WITH LATERAL may leave the toe stages out of
LENGTH > 10,000 FT reach of CT.
900
800 Hydraulically activated sleeves
700 Hydraulically activated sliding sleeves
600 eliminate the need for intervention
500
for the first stage of a completion
program, which is a major benefit in
400
extended-reach lateral wells. These
300
sleeves are opened hydraulically,
200 without the need for intervention
100 and initiate fluid flow into the reser-
0 voir to initiate stimulation.
2014 2015 2016 2017 2018 Reliability has become a common
The number of wells completed in the Permian Basin since 2014 with lateral lengths greater issue regarding some hydraulically
than 10,000 ft has increased substantially. (Source: Packers Plus) activated sliding sleeves on the mar-

70 April 2020 | E&P | HartEnergy.com


ket. Due to some sleeves not opening, operators have
taken to running two or three hydraulically activated
sliding sleeves at the toe of a well to ensure at least one
sleeve will provide access to the reservoir. While this
option does allow interventionless operations, it is not a
cost-effective solution.
Stimulation options
Packers Plus has engineered systems to effectively stimu-
late the toe stages of extended-reach laterals through a
suite of hydraulically activated toe subs: the Toe-XT Test-
able Hydraulic Toe Sleeve, Toe-AP Hydraulic Toe Sleeve,
TREX Rupture Disc Sub and TREX Wet Shoe Sub.
The Toe-XT Testable Hydraulic Sleeve is an injec-
tion/production port that allows the casing string to be
pressure tested a single time before opening. After the
casing integrity test has been performed and pressure in
the well is released, the sliding sleeve is ready for activa-
tion and the operator can begin stimulation operations.
The Toe-AP Hydraulic Toe Sleeve is a sliding sleeve
for the first stage of a cemented liner that reduces oper-
ational risk, while saving time and cost in delivering an
effective treatment of the first stage. The reliability of
the toe sleeve is enhanced by incorporating an internal
rupture disc for tool activation.
The TREX Rupture Disc Sub eliminates the need for
a CT run to perforate the first stage in PNP comple-
tions. This hydraulically activated sub is typically run as
an economical backup option to the primary hydraulic
toe sleeve. If required, the rupture discs will burst at a
set pressure to establish communication with the reser-
voir and enable wireline tools to be deployed to stimu-
late the first stage.
The TREX Wet Shoe Sub is a hydraulically activated
tool that eliminates the need for a CT run to perfo-
rate the first stage in PNP completions. Assembled just
above the float collar, the landing dart that displaces
cement is used to activate the Wet Shoe Sub and create
a flow path around the dart to establish communica-
tion with the reservoir and enables wireline tools to be
deployed to commence stimulation operations.
With a range of functionalities, hydraulic toe subs can
be incorporated into a variety of completion designs to
reduce operational risk in stimulating the first stage of a
horizontal well.
Hybrid completion systems
Combining hydraulically activated toe subs with sliding
sleeve technology in the lower stages of an extended-
reach lateral well can further enhance the operational
efficiency experienced for the first stage. Hybrid comple-
HartEnergy.com | E&P | April 2020
shale
SOLUTIONS
tions have become particularly useful in extended-reach
lateral wells.
Ball-activated completions are ideal for lower stages,
as they do not require conveyance by CT or wireline.
Packers Plus ball-activated systems give operators the
flexibility needed for hybrid systems in openhole or
cemented liners as well as single-point entry or limited-
entry applications. Ball-activated sleeves in the toe of
extended-reach laterals help start the treatment process
faster and more efficiently than traditional PNP methods.
A crossover back to PNP or CT sleeves is typical for
systems at the point when measured depths for upper
stages are within easy reach. The hybrid combination is
customizable to suit operator preferences and comple-
tion design requirements, enabling a customized system
that utilizes the best features of each technology.
Case studies
An operator working in the Permian Basin installed
the Toe-XT Hydraulic Sleeve to simplify operations for
the first stage of a PNP well. After nearly eight months
sitting downhole, activation of the toe sleeve was success-
fully executed without issue.
A casing integrity test to 8,900 psi was performed
for 15 minutes before the Toe-XT Hydraulic Sleeve
was activated for stimulation. The sleeve opened on
the next pressure cycle, enabling stimulation of the
first stage. The second stage of the well included five
QuickPORT IV Limited Entry Sliding Sleeves, which
enabled operations to continue without downtime
between stages.
In another case, an operator working in the Permian
Basin successfully resolved operational issues in extend-
ed-reach laterals by deploying ball-activated sliding
sleeves for the toe stages of its PNP completions.
One of the wells included 80 QuickPORT IV Limited
Entry Sliding Sleeves segmented into 20 stages to cover
the deepest 3,900 ft of the lateral before reverting back
to PNP for the rest of the well. This hybrid completion
technique proved effective, and all 20 stages were stimu-
lated in less than 70 hours of pumping time.
Conclusion
Hydraulically activated toe subs provide an effective and
efficient method for beginning stimulation operations in
extended-reach laterals. By deploying these tools at the
toe of a well, operators are able to reduce operational
risk associated with the conveyance of wireline or CT in
extended-reach laterals and effectively stimulate the toe
stage while minimizing nonproductive time and expedit-
ing completion time to bring wells online faster.
71
 offshore
SOLUTIONS
‘Must-have’ outweighing the
‘nice-to-have’ options
A conductor-supported offshore platform’s modular design reduces capital costs and
payback time and increases the internal rate of return.
Alistair Kirby, Aquaterra Energy
N atural resources, such as oil and gas, can bring
huge wealth to a country or region and be the
driving force behind economic development. In Latin
America, oil and gas have consistently been at the fore-
front of state economic policy over the last 20 years,
and it is easy to understand why. With a 20% share of
global proven oil reserves and almost 5% of natural gas
reserves, the region is a growing force within the global
hydrocarbon industry.
However, change is afoot. Latin America is a region
in transition. Changes in government policy mean
that state-owned oil companies such as Pemex are now
exposed to increased competition. For example, fields
in the Campos Basin, whose marginal, shallow-water
plays are ripe for redevelopment, have already been
sold to a number of small-cap players. Petrobras also
announced in the summer of 2019 that it was opening
up the Brazilian market by selling $11 billion of assets,
including $1.5 billion of shallow-water fields. This mar-
ket deregulation has been accompanied by divestment
Using well conductors as the structural support for the topside,
Sea Swift minimizes build and implementation times.
(Source: Aquaterra Energy)
72
by the supermajors, leading to the emergence of a new
generation of ambitious, smaller operators that are
ready to take advantage of these opportunities.
New kids on the block
The shallow-water fields that have been the subject of
these sell-offs may be smaller, but their contents are
no less valuable than fields farther offshore. They also
might be faster to develop and at a lower cost than
comparable deepwater options, making them an ideal
choice for new small-cap players.
Smaller operators tend to have a number of benefits
that can give them a strategic advantage. Many have
nimble decision-making processes, allowing them to act
quickly to develop, explore and adapt to changing busi-
ness and investment conditions. They also typically have
a lower overhead burden, allowing fields with smaller
levels of recoverable reserves to still be developed in a
competitive manner.
This combination of attractive development opportu-
nities and smaller companies eager to succeed means
that the region is set for a major expansion in shallow-
water development activity.
But what will this mean for the supply chain? Smaller
companies often have a more limited in-house techni-
cal capacity and management bandwidth, so partnering
with platform design and riser analysis experts will be
key to ensuring successful project outcomes.
Crucially, these independent companies are often
backed by financial institutions or private equity, for
which a fast return on investment is key. In turn, this
encourages increased appetite for faster, leaner oper-
ational and supply chain options. It is to that end that
these smaller operators are looking to forge a new
relationship dynamic with the supply chain, one based
on true collaboration and cooperation as opposed to
supply based on a tick-box procurement exercise.
One area where this is of particular relevance is in
the design and procurement of offshore platforms due
to local fabrication yard restrictions, logistical consider-
ations and the availability of local skilled workforces.
April 2020 | E&P | HartEnergy.com
 offshore
SOLUTIONS

Offshore platform design

Aquaterra Energy believes the industry will increasingly
see nice-to-have options removed from offshore platform
design with the focus being on lean plans, value for
money and must-have requirements right from project
inception. This will have a fundamental impact on many
project decisions including the platform choice itself. For
example, smaller, fit-for-purpose, modular and lower cost
alternatives will become the order of the day in contrast
to large custom-designed conventional jackets.
Aquaterra Energy’s Sea Swift conductor-supported
offshore platform is a low-cost platform that is ideally
suited to this new commercial environment. Its modular
design means that it can be adapted easily to suit indi-
vidual requirements. Sea Swift’s ability to be installed
by jackup rig rather than by expensive crane barge has
the potential to save project developers tens of millions
of dollars in installation costs. This all leads to reduced
capital costs, reduced payback time and increased inter-
nal rate of return. Developments that were previously
uneconomic become viable, and those that were already
viable can provide even greater returns.

Modular design and build

As well as the cost savings inherent with modular plat-
form design, Sea Swift also allows the fabrication of a
platform to be split up between a number of smaller
yards or laid out in such a way that it fits into a smaller
space that is typically available.
This not only provides project owners with greater
choice among fabricators, it also can increase the local
content of a project by enabling work to be placed in
domestic yards. This can offer some flexibility in the
contracting strategy and enable domestic yards to build
up their levels of fabricating expertise. For example,
some of the simpler modules, such as the subsea struc-
tures, can be fabricated locally in a newly established
facility, while the topsides that require more complex
fabrication facilities can be produced in a more estab-
lished yard.
What is true in Latin America is that traditional oper-
ator organizational models are no longer necessary.
The industry is in a time of great change, with major Aquaterra Energy provides heavy-lifting equipment, from initial
societal, technological and political trends reshaping analysis to installation, that includes the necessary associated
the environment in which oil and gas companies oper- equipment required to suit a range of subsea rig installation
ate. Although economic policies and priorities shift, operations. (Source: Aquaterra Energy)
the industry remains at the heart of this region’s core
identity, and it will remain there thanks to this new Have a story idea for Offshore Solutions? This feature highlights
breed of operator-supplier relationship. technologies and techniques that are helping offshore players
overcome their operating challenges. Submit your story ideas to
Executive Editor Jennifer Presley at jpresley@hartenergy.com.
References available.

HartEnergy.com | E&P | April 2020 73

 tech
WATCH
Ceramic microproppants
increasing productivity
Microproppants have been developed to maximize propped reservoir contact, reduce
production decline rates and improve stimulation efficiencies.
Brian Davidson, CARBO
O ver the last decade, there has been a significant
amount of work performed in the development of
shale formations, typically low permeability sandstone
and carbonate formations. Many of these formations
have low matrix porosity but are naturally fractured to
varying degrees, which helps boost overall hydrocarbon
mobility within the formation. During fracturing opera-
tions, these natural fractures are activated and/or inter-
sected by the primary active hydraulic fractures, and
additional small hydraulic fractures (fissures) also can
be created. Initially, these microfractures (natural and
hydraulic) enhance well productivity but eventually seal
up and close under stress as the well is drawn down.
This is evidenced by wells that have high initial
productivity (higher than can be characterized
using matrix permeability alone) followed by steep
production declines a few months into the well’s
producing life—a common signature in shale wells.
Microproppants were developed to enter these micro-
fractures, propping them open so they may contribute
Original Frac Design
The left side shows a fracture treatment with closed microfractures, and the right side shows a fracture treatment with microfractures
propped with microproppant increasing the contact area. (Source: CARBO)
74
to production over the life of the well, much the same
as unpropped fractures contribute to production in
some shale reservoirs.
Microproppant advances
Both silica and ceramic-based microproppants have
been around for several years. Unfortunately, micro-
proppants were always difficult to incorporate into frac-
turing operations because they required preblending
into a gelled slurry system, which added a large expense
and logistical complications. Therefore, the develop-
ment of a microproppant that can be blended dry (sim-
ilar to a standard proppant) makes it significantly easier
and less expensive to incorporate microproppant on
any fracture treatment at any stage.
The development of any new product usually starts
with requests from customers to address certain pro-
duction challenges. In this case, it was about how to
prevent microfractures of wide-ranging sizes from clos-
ing with a product that can endure formation stresses
during the productive life of a well. The technical
research team worked to develop a process to make
small mesh ceramic proppant. The result was a 325
Frac w/ Microproppant
April 2020 | E&P | HartEnergy.com
 tech
WATCH

mesh (45-μ) mean

particle diameter, 14,000 207,300 lb Total

Microproppant (lb)
which is approxi-
12,000 6,500 lb Average (32 stages)
mately 30% of the
size for standard 2,900 lb Minimum
100 mesh proppant. 10,000 13,400 lb Maximum
In addition, the
microproppant was 8,000
designed to range
primarily between 6,000
150 and 635 mesh,
allowing the prop- 4,000
ping of many sizes
of microfractures. 2,000
Microproppant
has greater strength -
compared to
31 29 27 25 23 21 19 17 15 13 11 9 7 5 3 1
sand because it
is ceramic. This
Natural !"#Fracture
!"#$%$% Index
enables it to
maintain an open
fracture, particu-
larly in a partial
monolayer setting,
which is achieved
when a single grain Mississippi Lime Example
must experience
high stress and The charts depict the amount of microproppant used per stage based on the Natural Fracture Index.
hold the fracture (Source: CARBO)
open. Therefore,
the microfractures that contain even a small amount than 100 mesh proppant. This significant improvement
of microproppant will remain open for the life of the in proppant transportability not only applies within the
well. In addition, the microproppant is designed to be fractures but also within the pipe, allowing the micro-
pumped dry, with most applications now being deployed proppant to be transported to the farthest perforation
using today’s “box” type proppant delivery systems. cluster in a stage, cleaning and conditioning the perfora-
tions and establishing a hydraulic fracture. The result is
Effect on production a better distribution of the fluid and proppant into all of
There have been published articles documenting 15% the clusters, meaning all clusters can be effectively stimu-
to 20% increased production that was attributed to lated. Recent pipe flow studies have shown that proppant
microproppant. Several operators have incorporated physical properties can significantly impact flow distribu-
microproppant into their standard completions due to tion through multiple perforation clusters.
the increased production. The incremental cost is not As with all fracture treatments, the proppant needs to
significant due to the low volumes required for the nar- be placed where the hydrocarbon pay zone is located
row microfractures. Some operators also have used the and where it will achieve the largest increase in produc-
ceramic microproppant to obtain a reduction in treat- tion. This is also true of placing microproppant into the
ing pressure that is attributed to better fracture condi- microfractures. Using commercially available software is
tioning or even reduced screenouts. possible to analyze standard drilling data to estimate
This leads to fewer horsepower charges or shorter frac the magnitude of natural fractures along the lateral.
stage times, both of which reduced the cost of the frac- With these data, the incorporation of microproppant
ture treatment. Furthermore, the small mesh size of the can be engineered for each treatment stage of the well
microproppant has a settling rate of 10 to 15 times slower to maximize well economics.

76 April 2020 | E&P | HartEnergy.com

 UNCONVENTIONAL REPORT:
ROCKIES & BAKKEN

Midstream constraints and

regulatory risks dampen Rockies,
Bakken output
Improving takeaway capacity could free production logjam.

In its recent “FundamentalEdge Report: Rockies &

Brian Walzel, Senior Editor Bakken in Focus,” Enverus reported that the low-growth
outlook will likely remain throughout 2020, but bet-

L imited takeaway capacity, industry concerns over

regulatory restrictions and low commodity prices are
combining to suppress production growth and operator
enthusiasm in the Rockies and Bakken region.
According to the U.S. Energy Information Admin-
istration’s (EIA) monthly “Drilling Productivity Report,”
oil production in the Bakken remained mostly flat in
2019, while the gassier Niobrara saw only modest gains
in natural gas production. The EIA’s report revealed
oil production in the Bakken hovering around 1.4
MMbbl/d, while gas production in the Niobrara held
steady at about 12.5 Tcf/d.
Although natural gas breakevens in the Rockies and
Bakken are higher than commodity prices, Enverus
expects any production gains operators might see will
likely come from their oil plays.
ter days could be on the horizon as planned pipeline
expansions come online sometime next year.
“Like all U.S. basins, the Rockies and Bakken are
expected to slow down due to lower prices and pipe-
line takeaway constraints, but that doesn’t mean there
aren’t some glimmers of hope,” said Jesse Mercer,
senior director of crude market analytics at Enverus.
“Operators that continue to scrutinize cost savings, effi-
ciencies and prioritization of crude oil over gas will fare
better than others.”
While most companies are reporting plans to main-
tain flat production in the Rockies and Bakken, some
are planning growth, such as Devon Energy, EOG
Resources, Marathon Oil and Hess. According to its
third-quarter 2019 investor report, Devon is planning to
potentially double its Niobrara activity this year.

PRODUCTION FORECAST Line pressure and

(Background photo courtesy of Mavrick/Shutterstock.com)

takeaway issues
2,000,000 3,500,000 negatively affected the
1,800,000 Denver-Julesburg (D-J)
3,000,000
Basin in summer 2018.
1,600,000
Most of those issues
1,400,000 2,500,000
have been resolved,
Gas (Mcf/d)
Oil (bbl/d)

1,200,000
2,000,000 as reflected in the
1,000,000 production increase in
1,500,000 2019. The Williston Basin
800,000
600,000 was impacted by the
1,000,000
2016 downturn, but it
400,000
500,000 has since rebounded
200,000
and has been in a
0 0 growth mode.
1/1/2010
7/1/2010
1/1/2011
7/1/2011
1/1/2012
7/1/2012
1/1/2013
7/1/2013
1/1/2014
7/1/2014
1/1/2015
7/1/2015
1/1/2016
7/1/2016
1/1/2017
7/1/2017
1/1/2018
7/1/2018
1/1/2019
7/1/2019
1/1/2020
7/1/2020
1/1/2021
7/1/2021
1/1/2022
7/1/2022
1/1/2023
7/1/2023
1/1/2024
7/1/2024
1/1/2025
7/1/2025

(All charts courtesy

of Enverus)

D-J Oil Powder River Oil Bakken Oil D-J Gas Powder River Gas Bakken Gas

78 April 2020 | E&P | HartEnergy.com

 UNCONVENTIONAL REPORT:
ROCKIES & BAKKEN

DENVER-JULESBURG BASIN COMPLETION TRENDS

Lateral Length vs. Proppant Intensity Lateral Length vs. Fluid Intensity
10,000 1,400 10,000 35
9,000 9,000
1,200 30

Proppant per Foot (lb/ft)

8,000 8,000

Fluid per Foot (bbl/ft)

DI Lateral Length (ft)

DI Lateral Length (ft)

7,000 1,000 7,000 25
6,000 800 6,000 20
5,000 5,000
4,000 600 4,000 15
3,000 400 3,000 10
2,000 2,000
200 5
1,000 1,000
0 0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
DI Lateral Length Proppant per Foot DI Lateral Length Fluid per Foot

Lateral lengths have steadily increased from 5,883 ft in 2015 to 9,243 ft in 2019, a 57% increase. Proppant and fluid intensities also have
increased, although at a lower rate than lateral length.

POWDER RIVER BASIN COMPLETION TRENDS

Lateral Length vs. Proppant Intensity Lateral Length vs. Fluid Intensity
10,000 1,350 10,000 25
9,000 9,000
Proppant per Foot (lb/ft)

8,000 1,300 8,000 20

Fluid per Foot (bbl/ft)

DI Lateral Length (ft)

DI Lateral Length (ft)

7,000 1,250 7,000

6,000 6,000 15
5,000 1,200 5,000
4,000 4,000 10
1,150
3,000 3,000
2,000 1,100 2,000 5
1,000 1, 000
0 1,050 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
DI Lateral Length Proppant per Foot DI Lateral Length Fluid per Foot

Lateral lengths in the Powder River Basin have increased significantly from 5,700 ft in 2015 to 9,146 ft in 2019, a 60% increase. While
proppant intensity has seen significant increases, fluid intensities have declined since 2016.

WILLISTON BASIN COMPLETION TRENDS

Lateral Length vs. Proppant Intensity Lateral Length vs. Fluid Intensity
10,000 1,200 10,000 25
9,000 9,000
1,000
Proppant per Foot (lb/ft)

8,000 8,000 20
Fluid per Foot (bbl/ft)
DI Lateral Length (ft)

DI Lateral Length (ft)

7,000 800 7,000

6,000 6,000 15
5,000 600 5,000
4,000 4,000 10
400
3,000 3,000
2,000 200 2,000 5
1,000 1000
0 0 0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Lateral Length Proppant per Foot DI Lateral Length Fluid per Foot

Completion methods in the Williston Basin have remained relatively consistent over the past five years. Lateral lengths have remained
mostly unchanged, and both proppant and fluid intensities increased up until 2017 and have since slightly declined.

HartEnergy.com | E&P | April 2020 79

9
 tech
TRENDS
Surface modification treatment increases oil
recovery in unconventional shale
Tendeka has released ShaleModifier, an oil-based poly-
mer treatment that covalently bonds to the rock surface
to allow enhanced oil flowback from the nanonetwork,
resulting in improved return on investment. Shale-
Modifier can be pumped as part of the initial comple-
tion ahead of the hydraulic fracture or as a workover
squeezed into the formation. Performance can be read-
ily evaluated using reservoir analogs that replicate the
inherent geometry of the shale in combination with for-
mation water and oil. During testing, the treatment has
demonstrated the ability to increase the volume of oil
recovered during flowback by up to 250% and increase
the average producing flow rate by 194% compared
to a control. Resistance to flow in unconventional for-
mations is created when droplets of brine form hydro-
gen-bonded networks with the surface of the silicate
formation rock, creating additional capillary pressure.
If the resistance is large enough, it can restrict hydro-
carbon flow rates out of the fractured rock formation.
The robust, binder chemistry in ShaleModifier has a
controlled molecular weight allowing the active polymer
to readily penetrate a pore network size as small as 100
nanometers with pressure differentials as low as 225 psi.
Mobile app remotely controls oilfield
water systems
SitePro Inc. has
released SitePro
Mobile, a mobile
app that gives oper-
ators greater visi-
bility and control
over their entire
fluid management
system. The app
brings remote
control and moni-
toring of real-time
data and analytics
from SitePro’s
Command Center,
the fluid manage-
ment software, to
mobile devices.
While this capabil-
ity has always been SitePro Mobile gives users real-time
available through visibility into the performance of
SitePro’s mobile equipment and facilities across their
web, the native iOS entire system. (Source: SitePro Inc.)
80
application enhances the user experience and expands
the available options. The mobile app is equipped with
a functional offline mode allowing users to access the
most recently updated data even when a data network is
unavailable. SitePro Mobile allows managers and field
personnel to continue working when a traditional web-
site is not available.
Companies collaborate to offer seismic data
Katalyst Data Management has entered into a commer-
cial agreement with IHS Markit to display seismic data
from AccuMap on Katalyst’s SeismicZone.com website.
The partnership will bring more than 60 years worth of
seismic data available for license to the public website.
SeismicZone.com visitors can access more than 4.7 mil-
lion linear km of 2D data and 440,000 sq km of 3D data,
along with key parameter information to help select the
right data for purchase. This newly exposed 2D and 3D
data will also be available for instant quality inspection by
registered users of SeismicZone.com. The e-brokerage
website provides a more timely method for potential pur-
chasers and licensees of seismic data to view and quality
inspect data online rather than having to wait for an indi-
vidual to provide the information. Additionally, AccuMap
users can access the SeismicZone e-brokerage directly
within the AccuMap platform and will have automatic
access to the quality inspection tools available on Seismic-
Zone.com. Visitors also can request to receive updates
after seismic data are added to their area of interest.
Upgraded power connectors to minimize
assembly and field maintenance time
Emerson has enhanced its
Appleton 200-Amp Powertite
series of pin-and-sleeve plugs,
receptacles and connectors
with new features that are
designed to provide faster
and easier field assembly,
greater environmental pro-
tection and improved worker
safety. Capable of supplying
reliable power to both fixed
and portable heavy-duty The upgraded Appleton
electrical equipment, the 200-Amp Powertite reduces
enhanced series is designed field assembly time and
to operate in wet, corrosive decreases the number of
areas such as land-based hand tools needed for
drilling rigs. The addition both installation and field
of nested Allen slots inside maintenance.
the terminal block allow the (Source: Emerson)
April 2020 | E&P | HartEnergy.com
 tech
TRENDS
terminals to be wired and fastened without disassembly,
and funnel-type terminals prevent copper conductors
from fraying and requiring repair during insertion.
The upgraded Appleton 200-Amp Powertite plugs have
a lockout provision on the plug sleeve where a locking
mechanism can be installed by using the plug lockout
lanyard accessory. In addition, marked terminal inserts
on four-pole models offer fast visual indication of
phases to guarantee safe wire installation. All terminals
are deeply recessed in the receptacle and plug interiors
to reduce danger of accidental touching and the poten-
tial for exposed arcs.
New offshore transfer system for people
and cargo
Ampelmann has released the E5000 system, which is
designed to transfer personnel as well as cargo weighing
up to 5 tons in rough water environments. The technol-
ogy is expected to be operational in the third quarter
of 2020, and it is based on the previously used E1000
system, which has been performing people and cargo
transfers safely since its launch in 2016. With one push
of a button, the switch between people and cargo mode
takes less than 1 minute. This plug-and-play system turns
any vessel into an all-round offshore tool. As a result, cli-
ents benefit from shorter campaign durations, increased
logistical efficiency and a broader scope of work, such
as lifting fully fueled generators to wind turbines or sup-
port blade repair projects.
The E5000 transfer system is designed to operate in high sea
states, thus enabling safe offshore access and extending the
weather window of operations. (Source: Ampelmann)
VR training program for employees
Danos has released a virtual reality (VR) competency
assessment and training program for employees to
drive down costs for customers while increasing safety
and minimizing exposure. The program curricula use
VR software and headsets so employees can see a job
82
site and virtually perform tasks. Training and assess-
ments can be carried out at a Danos or customer office
instead of traveling offshore or to a job site. By utilizing
VR to assess and train employees, Danos is improving
efficiencies in both land-based and offshore work envi-
ronments. Employees undergoing assessment are able
to demonstrate that they can perform a task rather than
simply explaining the steps involved. At the same time,
the technology creates an accelerated learning process
by allowing employees to see the internal workings of
equipment in the program’s animated view.
Advisory services help define and implement
a digital program
EAG Services, an oil and gas IT consulting firm, offers
evaluation, selection and implementation of technology
solutions along with M&A services. Its clients are increas-
ingly interested in what “digital transformation” means
to the E&P industry, how to create an effective digital
program and strategy, and which technologies provide a
solid foundation for success. EAG Services' sister com-
pany, EAG 1Source, provides upstream and midstream
organizations with back-office and IT outsourcing.
1Source CIO Advisory Services are designed to help cli-
ents define and implement a digital program with a
focus on current trends including cloud computing;
edge computing and the convergence of IT/OT; mod-
ern data and analytics architecture; and enterprise work-
flow and process automation. Along with CIO Advisory
Services, 1Source offers clients cloud, field and infra-
structure support as well as back-office processing for
upstream accounting, midstream accounting, produc-
tion accounting and land administration. 1Source is
designed to help clients boost productivity, increase
profits and alleviate staffing issues.
Editor’s note: The copy herein is compiled from press releases
and product announcements from service companies and does
not reflect the opinions of Hart Energy. Submit your company’s
updates related to new technology products and services to
Faiza Rizvi at frizvi@hartenergy.com.
April 2020 | E&P | HartEnergy.com
 international
HIGHLIGHTS
1 US
A Lea County, N.M., Wolfcamp com-
pletion was announced by Devon
Energy Corp. in Brinninstool West
Field. The Thistle Unit 155H is in
Section 33-23s-33e and bottomed
in Section 28. It was tested flowing
4,166 bbl of oil, 8.79 MMcf of gas and
6,472 bbl of water per day. The well
was drilled to the northwest to 22,932
ft with a true vertical depth of 12,408
ft. Production is from perforations
between 12,853 ft and 22,759 ft.
2 Peru
Karoon Energy is underway at the
Marina-1 exploration well in Block
Z-38 in the Tumbes Basin offshore
Peru. The well has a planned depth
of 3,000 m. Karoon is the operator
and has a 40% net interest in Block
Z-38. The Marina prospect has a gross
prospective resource best estimate of
256 MMbbl of oil. The Marina pros-
pect comprises a large fault-bounded
structure with targets at multiple lev-
els from 900 m to 3,000 m. The tar-
gets are in the Tertiary Pliocene La
Cruz to Cardalitos formations.
3 Bahamas
An offshore Bahamas exploration
well is planned by Bahamas Petro-
leum Co. at Perseverance-1. The
well is targeting recoverable P50 oil
resources of 77 MMbbl of oil with an
upside of 1.44 Bbbl of oil in the B
structure and a recoverable resource
potential in excess of 2 Bbbl. The
well location will be on the north-
ern segment of the structure. Area
water depth is about 510 m. It has
a planned depth of 4,822 m with a
Tertiary objective, but it will evalu-
ate multiple reservoir horizons. The
company anticipates that any discov-
ery at this location has the potential
to extend into a larger portion of
84
the overall B structure extending to
the southeast.
4 Colombia
Fronterra Resources announced a
Lower Magdalena Valley discovery
in Colombia in the VIM-1 Block.
The La Belleza-1 exploration well
was drilled to 11,680 ft and encoun-
tered 179 ft of potential hydrocar-
bon-bearing reservoir in Ciénaga De
Oro. It was tested flowing 2,696 bbl
of oil and 11.8 MMcf of gas per day
with an average water cut of 10%.
The initial shut-in wellhead pressure
was 4,700 psi. The test was limited
by the on-location facilities. Bottom-
hole flowing pressures were at about
6,000 psi. The partners, Fronterra
and Parex, are evaluating options
to drill additional delineation
wells in 2020 from the existing La
Belleza well pad. Parex began drill-
ing another exploration well in the
nearby Guama Block at Asai-1 and is
targeting oil and gas in Porquero at
about 12,000 ft.
5 Chile
GeoPark announced the discovery
of a new gas field, Jauke Oeste, in
the Fell Block in Chile. Explora-
tion well Jauke Oeste 1 was drilled
to 9,596 ft. A production test in
Tobifera flowed 4.4 MMcf/d of
gas with 52 bbl/d of condensate.
The wellhead pressure was 3,141
psi. Additional production history
is required to determine stabilized
flow rates of the well and the extent
of the reservoir. The Jauke and
Jauke Oeste gas fields are part of
the large Dicky geological structure
in the Fell Block. Operator GeoPark
is planning additional testing and
exploration at Leun 1 well in the
Flamenco Block, Huillin 1 well in
the Isla Norte Block and Koo 1 well
in the Campanario Block.
6 Trinidad
Touchstone Exploration announced
test results at Cascadura-1ST1 on the
Ortoire Block in Trinidad. The well
had a peak flowback rate of 5,736
boe/d, including 30.2 MMcf of gas
and 710 bbl of NGL. The first stage
of testing was the lower-most 162 ft
of a total of 777 ft of identified pay
in Herrera. Analysis indicated liq-
uids-rich gas with no H2S and no pro-
duced water. The well will be shut
in for a two-week pressure buildup
test, and completion and testing
are planned on an additional 450
ft of identified pay. A sidetrack was
drilled to 6,350 ft, and wireline logs
and drilling samples indicated about
1,037 ft of prospective hydrocarbon
pay in Cruse and Herrera at depths
between 1,030 ft and 6,350 ft. It was
tested on a 40/64-in. choke and the
flowing pressure was 3,305 psi.
7 Guyana
Another Guyana discovery was
announced by Exxon Mobil Corp.
According to the company, the new
find increases its estimated recov-
erable resource base in offshore
Guyana to more than 8 Bboe. The
new Uaru-1 well hit about 94 ft of
high-quality oil-bearing sandstone
reservoir. It was drilled in 6,342 ft of
water and is about 10 miles north-
east of the Liza Field. The Uaru-1
well adds about 2 Bboe to the pre-
viously estimated reserves on the
block. A fifth drillship is expected to
be deployed later in 2020.
8 Ukraine
Cub Energy is drilling the Makee-
vskoye-30 well in eastern Ukraine.
The venture has a planned depth
of 1,985 m and will evaluate several
prospective horizons. According to
the company, it will be the first well
April 2020 | E&P | HartEnergy.com

1
3 10
6
4 7
drilled in the producing Makeevskoye
Field in over three years after recent
successful recompletions on the
Makeevskoye and Olgovskoye fields.
9 Neutral Zone
(Kuwait, Saudi Ariabia)
Kuwait Petroleum and Aramco
have decided to resume oper-
ations in the Khafji and Wafra
fields in the Neutral Zone between
Saudi Arabia and Kuwait. A territo-
rial dispute halted oil production
in the offshore Khafji Field and
onshore Wafra Field. According
to Kuwait Petroleum, production
from the fields is about 280,000
to 300,000 bbl/d at Khafji and
220,000 bbl/d at Wafra, which
both produce heavy, high-sulfur
crude. U.S. sanctions on Iran and
Venezuela have tightened the sup-
ply heavy crude. The shutdown
began in 2014 at Khafji Field due
HartEnergy.com | E&P | April 2020
9
to a dispute over their territorial
rights then expanded to include
Wafra in 2015.
10 United Arab Emirates
A gas and condensate discovery
was announced by Eni in the Mah-
ani exploration prospect located
onshore in the Area B Conces-
sion of Sharjah (United Arab
Emirates). The Mahani-1 well was
drilled to 14,597 ft and encoun-
tered a thick gas-bearing limestone
reservoir in the Lower Cretaceous
Thamama. The well was tested with
flow rates up to 50 MMcf/d of gas
and associated condensate. Addi-
tional appraisal drilling is planned.
The new phase of exploration will
be targeting complex sub-thrust
Jurassic and Cretaceous plays of
the Arabian carbonate platform in
the inner thrust zone of the Oman
fold belt.
international
HIGHLIGHTS
11
11 Myanmar
Posco International announced a
new offshore gas field in Myanmar
near the Shwe gas field development
in the Andaman Sea, Bay of Bengal,
in Block A-1. The Mahar-1 discovery
was made while carrying out explor-
atory undersea drilling for its Mahar
gas project. An 18-m gas column was
encountered, and it is estimated that
it could produce 38 MMcf/d of gas.
The completion is in 2,598 m of
water. Posco plans to drill more
appraisal wells at the site in 2021.
The Shwe gas field consists of blocks
A1 and A3. There are two existing
gas fields, Shwe and Shwe Phyu, in
Block A1.
For additional information on these projects
and other global developments, visit the
activity highlights database at
85
 on the
MOVE
PEOPLE
Steve W. Herod has been
appointed CEO of Grizzly
Energy LLC, formerly Van-
guard Natural Resources.
Julie J. Robert-
son (left) will resign tries Inc.
as Noble Corp.
Plc’s president
and CEO and will take on the newly
created role of executive chairman of
the board of directors at the close of
the company’s next annual general
meeting of shareholders. Robert W.
Eifler (right), who currently serves as
senior vice president of commercial,
will become president and CEO.
Mark Papa (left) will retire
as chairman and CEO
of Centennial Resource
Development Inc. on May been named business development
31. Following his retirement, the
company’s board has decided to
separate the roles of chairman
and CEO. Sean R. Smith, the
company’s vice president and
COO, has been promoted to CEO,
effective June 1. Smith also is
expected to be appointed to the
Centennial board.
Larry D. Pinkston has retired as
CEO and president of Unit Corp.
He will be succeeded by David T.
Merrill. Pinkston will continue
serving on the company’s board
of directors.
TWMA has appointed
Halle Aslaksen CEO.
Fredrik Amundsen has been named
CFO of TGS.
William R. Thomas has been
selected as president of VAALCO
Energy Inc., and he will continue
serving as a nonexecutive director.
86
Tulsa Winch Group,
a Dover company, has
appointed Arjun Mirdha
president.
Nick Bigney has been named senior
vice president, general counsel and
corporate secretary of Flotek Indus-
CAM Integrated Solutions
has promoted Israel Marti-
nez to senior vice president
of business operations and
Jason Newton (left) to vice president
of engineering operations.
Tendeka has
appointed Jim
McGowin (left)
vice president for
North and South America. Addi-
tionally, Renato Barbedo (right) has
manager for South America.
Unique Group has named Chris
Forde regional vice president of
Asia-Pacific.
Oxford Flow has appointed
Andy Ghiz vice president of
the Americas.
MGB Oilfield Solutions has
named Barry Ekstrand vice
president of strategy and
commercialization.
Greg Bock has been pro-
moted to vice president/
general manager of Anue
Water Technologies.
Yvo Jansen has been
named global business
development director of
Lloyd’s Register.
ODE has appointed Sandy
Reid managing director of
asset management.
Atwell has welcomed Bruce Napier as
director of operations for oil and gas.
Darren Rendall has been appointed
technical director of First Marine
Solutions, and Marc Petty has joined
as marine manager.
ASCO has appointed Peter Hollis-
ter group head of fuels and lubri-
cants, and Chris Lloyd has been
named group head of waste and
decommissioning.
ICR Integrity has named
Johan Tønsberg general
manager of Norway.
Vacuworx has promoted
Paul Raines to regional
service manager.
TrendMiner has appointed
John O’Connell global part-
ner manager.
Stephen Littleton has been selected
as Exxon Mobil Corp.’s vice presi-
dent of investor relations and cor-
porate secretary. Neil Hansen, who
currently serves as vice president of
investor relations and corporate sec-
retary, will assume the role of vice
president of fuels for Europe, the
Middle East and Africa.
Schlumberger has appointed Victoria
Morales public relations specialist.
Lisa Ann Hofmann has transitioned
to a new position as communications
manager for Schlumberger’s North
America business, supporting both
land and offshore activities.
AqualisBraemar has promoted John
MacAskill to the newly created posi-
tion of group marketing director.
Jon Snyder has been
named the customer
engagement manager of
OspreyData.
April 2020 | E&P | HartEnergy.com
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MOVE

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Well-SENSE. including liner hangers and packers
and isolation valve technologies.
Gazprom’s board of directors
has elected Mikhail Rosseev Enverus has acquired RS Energy Group.
as a member of the Gazprom
Management Committee for a Hunting PLC has acquired Enpro Sub-
five-year term. sea and its subsidiaries in Norway, the
U.S. and Ghana.
COMPANIES
International Petroleum Corp. has com-
AWC Frac Valves Inc. has rebranded as pleted its previously annouced acquisi-
AWC Frac Technology. tion of Granite Oil Corp.
Schlumberger has opened a manufac- mCloud Technologies has acquired
turing center in King Salman Energy AirFusion, a provider of artificial-
Park in Dammam. The center, which intelligence-based drone inspec-
supports Saudi Aramco’s In-Kingdom tion of wind turbines and other
Total Value Add program to pro- energy facilities.

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AGC Chemicals Americas Inc . . . . 29
Aggreko . . . . . . . . . . . . . . . . . . . . . . 17
Apergy . . . . . . . . . . . . . . . . . . . . . . . 51
CGG Geoscience . . . . . . . . . . . . . . . 33
CP Energy Services . . . . . . . . . . . . . 43
DUG East/Marcellus-Utica
Midstream . . . . . . . . . . . . . . . . . . . . 39
EDF Trading . . . . . . . . . . . . . . . . . . IBC
Endurance Lift Solutions . . . . . . . . . 49
Energy ESG Conference . . . . . . . . . 37
E&P . . . . . . . . . . . . . . . . . . . . . . 4, 5, 11
GR Energy Services . . . . . . . . . . . . . 13
Halliburton . . . . . . . . . . . . . . . . . . . . 53
HartEnergy .com . . . . . . . . . . . . . . . . 75
Hart Energy Conferences . . . . . . . 2-3
Hart Energy Store . . . . . . . . . . . 35, 67
Helmerich & Payne Inc . . . . . . . . OBC
IPAA . . . . . . . . . . . . . . . . . . . . . . . . . 81
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Midstream Texas Conference &
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NexTier Oilfield Solutions Inc . . . . . . 6
Nine Energy Service . . . . . . . . . . . . 65
Petroleum Equipment &
Services Association . . . . . . . . . . . . 15
Red Lion Controls . . . . . . . . . . . . . . 61
Rextag . . . . . . . . . . . . . . . . . . . . . . . . 83
RFG Petro Systems . . . . . . . . . . . 45, 47
Sand Separation Solutions . . . . . . . . 63
SparkCognition . . . . . . . . . . . . . . . . 59
TETRA Technologies Inc . . . . . . . . . 31
TGS . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
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Ideal Energy Solutions LLC . . . . . . . 27 World Petroleum Congress . . . . . . 41

HartEnergy.com | E&P | April 2020 87

 last
WORD

Increasing versatility of drones expands

opportunities for data capture
When people say the sky is the limit for Big Data, they must be talking about drones.

cally referenceable data usable across multiple company

Peter Walper, Thermal Cam departments such as engineering, geographic informa-
tion systems, construction, survey, maintenance and

I n recent years, drones have greatly increased the

efficiency, accuracy and scope of leak detection
that they can provide. Before drones came along,
repair, or to anyone with a need to know. These data
can be used for design, planning, safety evaluations,
maintenance scheduling and detecting problems in
maintenance personnel would walk a facility with a good time before malfunctions or catastrophes occur.
thermal camera and a sniffer. It would be up to each And it’s getting better. Drones are now replacing
individual to calibrate equipment, define and follow ground crews, planes and helicopters. Camera systems
a predetermined route and evaluate every valve or are multifunctionable. In addition to collecting digital
connection. It also would be up to them to record and data, they also optically collect substance identification
document the findings. Th This was an efficient// a d parts-per-million
and ll data in one time-efficient
inefficient and unreliable w way of con- h Fixed-wing
flight. d ng drones can cover long
ducting onsite inspections, b but it was r
ranges d more area in a shorter
and
the only option. ttime, llimited
mited only by visual lines of
Once these cameras were ssight
h as required by the Federal
mounted to drones to cap- A tion Administration’s reg-
Aviation
ture an aerial perspective, l tions. Flight times, battery
ulations.
the inspection solution l e, operational distance,
life,
game was upped to a great pixel quality and GPS,
degree. While this was a eal-time kinematics and
real-time
big step in the right direc- post-production kinematics
tion, it was still an effi- have pushed drone capa-
cient/inefficient system. bilities into a leading role
Flights had limited battery in NDT data collection.
life and carrying capacity, The results of this kind
and they collected less- off automation are clear:
precise data. The data they rreduced
duced staffing requirements,
did collect were accessible o onlyl ffaster detection and solution of
after landing. p bl s, greater safety and bet-
problems,
With much more sensitive equip- ter cash h flow.w. In today’s tight equity
ment on board, drones cond conduct economy, a drone’s real-time data
nondestructive testing (NDT) sa e ,
safer, ll i can be part of the move
(Source: Dmitry Kalinovsky/Shutterstock.com) collection
faster and more cost-effectively. They toward real-time profitability.
pinpoint leaks across multiple facilities, within centime- The challenge next becomes taking drone flights and
ters of accuracy and in a fraction of the time it takes a NDT to the next level, which can be accomplished by
ground crew to walk along flowlines and around tanks. understanding more about the task at hand, how to
Ten locations can be scanned in a day compared to the efficiently perform that task, what kind of information
one or two that can be by the older methods, deliver- to look for, how to fly the mission within defined stan-
ing data accurately and reliably in real time, streamed dards, repeatability and how to deliver more accurate
to the drone operator and end user. data. It’s very clear that with the combination of Big
Here’s where Big Data comes in. This process is Data and the latest drone technology, the sky really is
repeatable, with autonomous flight, providing histori- the limit.

88 April 2020 | E&P | HartEnergy.com