There are not many in the industry today who can’t remember when 300 m (1,000 ft) water depth was considered very deep for oil and gas operations. As scientists and engineers developed more sophisticated drilling and production units, built more robust mooring and riser systems, designed better hulls, and conceptualized equipment that would take operations deeper, they changed the perception of the deepwater frontier.
Today, oil is being produced safely from Shell’s Perdido field in the Gulf of Mexico at a depth of 2,450 m (8,000 ft), and R&D efforts are aimed at making production in 3,000 m (10,000 ft) a reality.
As E&P has gone into deeper water, it also has expanded into more challenging geographical areas, including those with arctic conditions. This harsh operating environment introduces the need to contend with floating ice, flow assurance and logistical challenges, and personnel safety issues.
Subsea production, which has been possible for decades, is now reaching greater depths further from shore in more harsh environments than ever before. The first subsea separation project, Hydro’s Troll pilot, was installed in 1999. Subsea compression technology is the next step.
Enormous strides have been made onshore as well. A decade ago, unconventional developments were a side note. Today, North American shale production is climbing rapidly, and interest in shale oil and gas is spreading around the globe, with China and India investing in North American fields while they lay the groundwork for domestic development. Discoveries in Poland and, most recently, the UK have placed a number of countries in Europe on the shale map as well.
Meanwhile, Australia, which has increased its LNG output from giant offshore finds, has ramped up investment in CBM as well. Queensland CBM makes up about 80% of the domestic natural gas market, and plans are now in place to add significant production over the next 10 years.
Technology also has opened up more heavy oil reservoirs for production, including the Hebron field in the Jeanne d’Arc Basin offshore Newfoundland, which was discovered in January of 1981and is now scheduled for first oil in 2017.
It is easy to see that yesterday’s frontiers are today’s front lines. As technologies are developed and implemented, the E&P horizon will continue to change, and the editors at E&P will continue to spotlight the trends that are changing our industry.
As I conclude this month’s column, I am embarking for new frontiers myself. As I leave E&P magazine and take the next step in my career, I will remember fondly the time I spent as editor. And I will continue to be a devoted reader of what I believe is the best magazine of its kind in the business.
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