Exclusives

Chevron, Gorgon, Australia, LNG, Jay Johnson

Gorgon was initially slated to produce gas in early 2015 at a cost of US$37 billion when the final investment decision was made.

crude, oil prices, price drop, IHS, study

Prices have not yet fallen far enough for an appreciable supply adjustment to occur, researchers say.

Iran, oil, production, sanction, investment

The country’s oil and gas sector development also hinges on the capacity to lure capital and technology from foreign companies, according to a report.

proppant, frack sand, consolidation, PacWest, IHS, Samir Nangia

The top 10 frack sand suppliers claim 55% of total business, while more than 40 companies make up the remaining percentage.

Bakken, fracking, carbon dioxide, proppant, shale

A major IOC is set to use CO2 and proppant in a first of its kind test well in the Bakken Shale.

Completion

Refracking, shale, horizontal drilling, IHS, Bloomberg

Refracking has been met with enthusiasm—especially when it works—and skepticism, but in order to move forward, the industry needs a large-scale refracking program and more investment IHS says.

The short life span of these wells, long thought to be perhaps the single biggest weakness of the shale industry, is being stretched out, Bloomberg said.

DUG East enhanced completions Marcellus shale Utica

Companies are focusing on enhanced completions among other techniques and technology to boost production in the Marcellus and Utica shale plays, but cluster efficiency remains an area of concern.

Understanding drainage volume and improved permeability of stimulated rock is essential to forecasting production, according to MicroSeismic Inc.

Effective completions, flawless execution and multi-lateral wells are emerging techniques for cost-conscious operators looking to improve results. 

Drilling

Where ACTIVATE has been used, operators see about an 80% increase in EUR per well and a 66% reduction in cost per barrel of oil equivalent from refracked wells verus new wells, Halliburton said in a news release.

For about US$523 million, Maersk Drilling extended contract with BP to operate NA Heydar Aliyev drilling rig in Shah Deniz natural gas field in the Caspian Sea until May 2021. 

Draft regulations allow hydraulic fracturing below 1,200m in protected areas, including national parks and groundwater, Reuters said.  Local politicians rejected two projects that could have been first shale gas-producing wells.

Fennica is one of two ice management vessels in Shell's nearly-30 ship fleet for Chukchi Sea, Reuters said. It contains the capping stack to contain a blown-out undersea well.

The Netherlands will ban shale gas drilling for five years and not renew existing exploration licenses due to environmental concerns, Reuters said. The country seeks alternative energy sources.

Enhanced Oil Recovery

GlassPoint Solar, EOR, solar, oil

The oil industry’s demand for energy is growing rapidly, and solar can supply much of that power, GlassPoint Solar CEO Rod MacGregor said.

royalty interests, Cenovus, Encana, Ontario Teacher's Fund, megadeal

The Ontario Teachers’ Pension Plan buys oil and gas royalty company Heritage Royalty for C$3.3 billion to acquire one of the largest royalty, mineral interests in Canada despite down commodity prices. 

Australia-based Elk Petroleum Ltd. is actively exploring the idea of sourcing CO2 from a corn-ethanol plant to feed into its EOR activities in Nebraska.

Data from the EIA’s latest drilling production report projected about 16 MMcf/d will be produced in the Marcellus alone in July, up from about 15 MMcf/d in July 2014.

The project will use 4-D seismic imaging, horizontal drilling and pump technology. Polymer chemical injection technology’s role in maximizing economic recovery of U.K. hydrocarbon reserves will be demonstrated.

Field Development

The FPSO will produce from the Iracema North area of the Lula Field in the Petrobras-operated BM-S-11 block, BG Group said.

Sinopec Group is expected to start producing at the Yadavaran Oil Field in Iran at 85Mbbl/d under phase-one development, two company sources said, Reuters reported.

Under the agreement, InterOil will continue to provide certain technical services for Total until the end of 2015, a news release said. 

The BassGas project consists of the Yolla offshore well head platform connected by pipeline to the gas processing facility at Lang Lang, Victoria, AWE Ltd. said in a news release.

The Luda 10-1 oil field is located in Liaodong Bay of Bohai with an average water depth of about 30 m, CNOOC said in a news release.