TOPICS OF INTEREST
Natural Gas is Up, Except Where It’s Down
Natural gas prices have risen in the US but not in west Texas. The contrast is a sign of the growing pains that come with explosive growth changing this increasingly competitive market.
Mexico’s Giant Zama Discovery Gets New Interest Owner
DEA Deutsche Erdoel is buying Sierra Oil & Gas, giving the German operator stakes in six new blocks off Mexico—including the Zama discovery, where appraisal drilling is now under way.
Clustered-Development Approach Leads to Better Evaluation of Multiprospect Plays
In the clustered-development approach, the geologic dependence between prospects is combined with the aggregation of prospects to determine the economic viability of a grassroots development offshore.
Any entity assessing project viability at any stage of the exploration-to-production life cycle must ensure an evergreen examination of the commercial likelihood on the basis of an ongoing data analysis, refining development synergies coupled with strategic reframing as required.
Reframing Exploration Strategy Optimizes Project Value
The objective of this case study is to describe a specific approach to establishing an exploration strategy at the initial stage on the basis of not only uncertainty reduction, but also early business-case development and maximization of future economic value.
New Approach to Capital-Allocation Modeling Improves Performance Assessment
This new conceptual framework for capital-allocation management, known as advanced risk and capital-allocation management (ARCAM), aims to synchronize risk, strategy, and capital decision modeling to provide better visibility of future performance of capital-investment opportunities.
GE Speeds Up Plan To Sell Stake in Baker Hughes
The deal would raise nearly $4 billion for GE, which plans to reduce its stake in the oilfield services company from 62.5% to at least 50.1% after the transactions. It had previously announced in June its intention to sell its stake over a 2- to 3-year period.
ADNOC Announces Integrated Gas Strategy, Oil Production Boost
The Abu Dhabi government approved a $132.3-billion capital expenditure increase that will fund, among other things, a plan that could enable the country to sustain LNG production through 2040.
US Shale Consolidation Heats Up as Firms Mull Long-Term Survival
With big shale mergers dominating the headlines, some of the industry’s most influential financial players gathered to discuss what’s driving the shift in operational and fiscal priorities.
BP’s Lower 48 Unit Becomes BPX Energy
The rebrand follows the completion of BP’s $10.5-billion purchase of BHP’s assets in the Permian, Eagle Ford, and Haynesville.
Liquids-Rich Permian Showcased as a Model Basin
The SPE Liquids-Rich Basin Conference in Midland, Texas, merged topics that have dominated recent industry discussions: technologies centered on big data, interwell communication, and Permian Basin production.
Oil Prices Float in a “Fragile Equilibrium”
Oil prices appear to have stabilized during the past year, and speakers at the annual Energy and the Economy Conference at the Dallas Federal Reserve Bank say they expect prices to remain level, at least for a little while.
Petrobras, Murphy Oil Form 75,000-BOE/D US Gulf Partnership
The new venture will operate several deepwater assets—including the Cascade, Chinook, Medusa, and Thunder Hawk fields.
Merger of Ensco and Rowan Jacks Up Their Market Share
The merger of Ensco and Rowan creates a company with growing cash flow from the biggest fleet of jackup rigs, and growth potential as deepwater drilling comes back.
Eni, BP To Team in Hopes of Boosting Libyan Oil and Gas Exploration
Eni plans to buy a portion of BP’s interest in Libya’s Ghadames and Sirt Basins in an effort to relaunch exploration activity there next year.
BHGE To Buy Stake in ADNOC Drilling as Firms Form UAE Partnership
The union marks the first time an international company has taken a direct equity stake in one of ADNOC’s service companies. BHGE will expand its presence in UAE, while ADNOC will gain access to BHGE technological expertise and proprietary equipment.
Small-Field Approach Holds Promise for Operators in Southeast Asia
This paper shows how a new approach to small fields could unlock more than twice the net present value (NPV) of larger conventional fields in Southeast Asia at a similar level of capital expenditure (CAPEX).
WATCH: 2018 ATCE Opening Session
These days, it is all about digital. Click to find out what industry leaders from Encana, Google, Schlumberger, and Shell have to say about the ongoing transformation towards data-driven profitability.
Four Charts That Show DUCs Are Soaring in US Shale Fields
There is no single reason that they all exist—and bringing them all on line will face challenges.
BHP Affirms Devotion to Oil and Gas Despite US Shale Exit
BHP Billiton lost billions during its foray into US shale, but that doesn’t mean it has soured on oil and gas—particularly when it comes to deepwater development.
The Company That Slipped Into the Permian “Under The Cover of Darkness”
WPX Energy COO Clay Gaspar discusses his company’s timely transformation into a Permian player and the challenges that lie ahead in the basin.
Oilfield Service Patent Contests Get Heated
From the highest courts of the US judicial branch to the C-suite, contests involving patents have recently come to the fore in the innovation hungry US oilfield services industry, even as filings and litigation have declined in recent years.
Innovation Leaders to Meet in Scotland at SPE ENGenious Event
A new event is kicking off in September that will bring together the brightest minds in digital tech and oil and gas.
Bids, Dollars Rise in Third Regionwide US Gulf of Mexico Lease Sale
ExxonMobil and Hess led the way in the most active regionwide US gulf lease sale thus far.
Diamondback Energy Spending $10.5 Billion in Permian Acreage Expansion
Diamondback is slated to become the Permian’s latest pure-play giant with its pending purchases of Energen and Ajax Resources.
Odds on the World vs. Permian Fight Are Narrowing
While US onshore still holds an edge, international oil companies are finding attractive options for diversifying their portfolios, mixing onshore with offshore conventional fields, where finding and development costs are down , and the time it takes to bring them on line.
BP To Buy US Shale Assets From BHP for $10.5 Billion
BP ends a year of speculation as to who will buy BHP Billiton’s much-coveted US unconventional business, transforming its Lower 48 portfolio in the process.
ExxonMobil Awards Second Liza FPSO Contract to SBM Offshore
Scheduled for startup in 2022, the FPSO is expected to produce up to 220,000 BOPD on the development offshore Guyana. Liza is one of eight discoveries ExxonMobil has made in area.
UK’s Latest Licensing Round Aims for Offshore Frontiers
Just 2 months after issuing more than a hundred licenses, the Oil and Gas Authority begins the process again for a whole new set of blocks.
Chevron Prepares To Sell Central North Sea Assets
The company announced it would “initiate the process” of marketing its UK Central North Sea fields as part of a portfolio review.
Unlocking Egypt’s Unconventional-Resource Potential
The Apollonia tight-gas chalk play is located in the Abu Gharadig Basin in the Western Desert of Egypt. This has long been ignored as a gas play in the overburden, while the Jurassic and Cretaceous oil fields deeper in the basin have been explored and developed.
Coalbed Methane Prospects in Indonesia
This paper reviews the efforts to exploit CBM resources in Indonesia, the challenges these efforts have faced, and possible solutions that can make operations more efficient and profitable.
Coalbed Methane Development in China: Challenges and Opportunities
This paper presents a literature review to determine the engineering challenges and opportunities presented by CBM production in China.
GE To Spin Off Baker Hughes
GE announced today that it is spinning off Baker Hughes in its strategic plan for growth and shareholder value creation. It plans to focus on aviation, power, and renewable energy.
Equinor’s Offshore Bonanza Continues
Equinor has grabbed seven new licenses in the Barents and Norwegian Seas, the latest in a flurry of offshore activity in which the firm has added acreage off the UK and Brazil, gained approval for a big Arctic project, and awarded billions of dollars in service contracts.
Equinor, ExxonMobil Rack up More Brazilian Presalt Acreage
Equinor and ExxonMobil continued their aggressive pursuit of acreage offshore Brazil, collecting more blocks in the country's 4th pre-salt bid round.
How Do Oil and Gas Investors Pick Entrepreneurs? Vice Versa?
Oil and gas entrepreneurs need more than just a brilliant idea to attract investment, and investors have to offer more than just money.
Shaking up the Seismic Business with a Simple Idea
Understanding the behavior of subsea reservoirs traditionally takes months and millions of dollars. A new company says it can do this with a very targeted way in less than a week, for only thousands of dollars.
North Sea Acreage Awarded to 61 Firms in UK Licensing Round
UK’s active 30th Licensing Round resulted in the award of 123 licenses to a diverse set of 61 companies—an outcome that UK government officials hailed as more proof that interest is picking up in the aging North Sea.
Argentina’s Shale Play is Beginning to Live up to Expectations
Wells are starting to come on stronger than expected, which is putting a new emphasis on orginizing all the other ingredients needed for shale production: more rigs, roads, pipelines, water, and sand.
Total Prepares Exit from Big Iran Project as US Sanctions Renewed
The US re-imposing sanctions on Iran has prompted Total to consider dropping its stake in a project designed to bolster output from the world’s largest gas field.
ConocoPhillips Considering Sale of North Sea Assets?
The potential sale could net as much as $2 billion, depending on which assets were made available. The company has not launched a formal process but is said to be testing the waters, according to a new report by Reuters.
Guyana and Suriname: What’s Next on the Horizon?
ExxonMobil’s hot streak of offshore discoveries have sparked investor interest in the Guyana-Suriname basin. How did the company get there, and why do industry representatives feel optimistic about future deepwater prospects in the region?
Pioneer Unveils Strategy To Boost Permian Production, Control Costs
As it works to increase production to 1 million BOE/D, Permian mainstay Pioneer is taking a methodical approach to sustaining capital efficiency.
Abu Dhabi Plans International Tender for Oil and Gas Exploration Blocks
Abu Dhabi will conduct its first-ever competitive tender for international partners to explore and develop oil and gas blocks onshore and offshore.
Total Becomes Founding Partner of Smart Energy Fund in China
The $50-million investment ranks as one of Total Energy Ventures’ biggest investments to date. Dedicated to China’s energy sector, it will focus on renewable energies, the energy internet, energy storage, distributed energy, smart energy, and low-carbon businesses.
International Majors Expand Footprints in Brazil, Mexico
With presidential elections looming and energy reforms at a critical juncture, the two Latin American energy powers awarded a bevy of blocks to a who’s who of international oil companies.
ExxonMobil Exits Russian Ventures, Continues Success off Guyana
The US supermajor continues to evolve its global strategy by pulling out of once-promising Russian partnerships and adding to its offshore Guyana oil drilling bounty.
Colorado Operators Reaping Rewards From Sticking by ‘Predictable’ DJ-Niobrara
Colorado’s industry lacks the size, variety, and Wild West characteristics of Texas, but that is precisely why the Centennial State’s oil production is surging to record levels.
US Gulf of Mexico Production Projected To Hit Record High
Falling costs and breakeven prices, increased operational efficiencies, and favorable government policy are at the heart of a potential short-term boon in Gulf of Mexico production.
Concho Deal Creates Permian Basin Giant
A pair of Permian pure-play operators are consolidating to form a regional drilling and production powerhouse.
Latest Gulf of Mexico Lease Sale Generates Moderate Bidding Interest
The largest lease sale in the history of the area attracts $139 million in total bids, a $2 million increase over the previous lease sale held last August.
Eni Enters Abu Dhabi Amid Another Zohr Farm Down off Egypt
Partnerships are proving key in developing and sustaining big offshore projects internationally, with Eni now teaming with ADNOC off Abu Dhabi and farming out another stake in the Zohr gas field off Egypt.
Alternatives No Threat to Oil, Aramco CEO Says
Fears of peak oil demand are exaggerated, Saudi Aramco’s CEO says, despite recent headlines that advances in electric vehicles and worries about climate change will lead to a drop in global oil and gas use.
Statoil, ABB Among Companies Pushing Integrated Operations Initiatives
Statoil’s integrated operations center on the Norwegian continental shelf is one of several initiatives operators and service companies have set in motion to improve condition monitoring and maximize production on their assets.
Looking for Innovation: Oilfield Services Remain a Challenge
The capital intensity of energy operations provides a challenge for early-stage companies looking to stand out. What makes companies innovative, and where are the areas where venture capital is seeing the most innovation?
Firms Lay Transformation Blueprints for Post-Downturn E&P World
Two old school operators and a financial change agent embody a new era for the US onshore industry. Their CEOs convened at the NAPE Global Business Conference in Houston to explain why.
Majors to Feature Heavily in Global Upstream M&A Activity in 2018
With portfolios that in some cases look dramatically different from a few years ago, the majors now have the ability to think about long-term upstream growth through deal making.
Schlumberger Exits Seismic Acquisition Business
Schlumberger has decided to quit the seismic acquisition business due to poor financial returns.
Total Ups Its US Gulf of Mexico Game Through Buy-In to Anchor Discovery
Total just strengthened its presence in United States deepwater plays through an acquisition from Samson that gives the French company a 12.5% interest in blocks covering the Anchor discovery, one of the most significant recent finds in the Gulf of Mexico.
Norway’s Record Offshore License Award Attracts Major Operators
The company’s 31 licenses highlight a record-high total awarded during the latest APA round, which is aimed at developing mature areas of the NCS.
Petrobras, Total Complete Major Presalt Deals
Petrobras and Total have executed two major transactions involving deepwater, presalt development assets offshore Brazil, with Total becoming the first major international company to operate a Brazil presalt field.
Increased Spending, Project Sanctions to Fuel Global Upstream Resurgence in 2018
With their newly refined portfolios, operators are looking toward growth in the coming years but will remain cautious given ever-changing industry economics.
Integrating Technology and Organizational Alignment for a Portfolio Implementation
One E&P company has found that implementing and sustaining a portfolio process require technical solutions and application of best practices for three critical elements: production forecasting, project modeling and economic evaluation, and portfolio management and decision making.
A More-Holistic Approach to Oilfield Technology Development
a holistic view of technology maturation that addresses both technical and nontechnical risks. The definition of success is expanded to include the establishment of successful, commercially viable, and sustainable solutions that meet end-user needs and requirements.
The papers highlighted in this article cover technical assessment of unconventional resource plays, portfolio optimization, and technology development, all very relevant in today’s environment.
Building Type Wells for Appraisal of Unconventional Resource Plays
The objective of the complete paper is to present an integrated work flow that can be used to build P90, mean, and P10 type wells, which represent the range of potential outcomes for the geologic subset in an unconventional resource play.
Linn Energy Selling Spree Tops $1 Billion With Sale of Bakken Assets
Linn Energy recently sold its Williston Basin properties for $285 million. This deal brings Linn’s year-to-date total sales agreements to more than $1.5 billion as it financially restructures after bankruptcy.
Jones Energy CEO Tells of Company’s Transformation
At the recent Leaders in Industry luncheon in Houston, Jonny Jones told the interesting story of how Jones Energy grew from a small private entity to a company whose shares trade on the New York Stock Exchange.
Angola: Does Recent Change Mean Economic Development?
Angola’s powerful oil and gas industry has enabled the country’s rapid growth, but an overreliance on those revenues has posed major challenges. Does a recent change of leadership mean a shift in the nation’s economic direction?
BP and Shell Agree: A New Energy Future Is Coming
The world still needs oil and gas, but it is also making room for renewable energy which will change how upstream companies do business.
New Study Shows Stanching of Decline in Oil Reserves, Revenue
Despite a decline in oil and gas production and a decrease in revenue from 2015, an Ernst & Young’s study had a cautiously optimistic outlook as the industry adjusts to what it called “the new normal” of a lower, but stable, oil price.
BHP Billiton Plans To Divest US Onshore Assets
BHP Billiton plans to divest its US onshore assets. The company will continue to complete well trials, acreage swaps, and look into midstream solutions to increase the value, profitability, and marketability of the assets.
Petrofac Sells Stake in Pánuco Contract to Schlumberger
Petrofac sold its 50% interest in Petro-SPM Integrated Services to Schlumberger. Petro-SPM operates the Pánuco Integrated Service Contract in Mexico. Schlumberger now owns 100% of Petro-SPM.
Total Acquires Maersk Oil in $7.5-Billion Deal, Boosts North Sea Presence
Total’s acquisition of Maersk Oil includes holdings in the North Sea Johan Sverdrup and Culzean projects. Total will become the second-largest operator in the northwest Europe offshore region. Maersk’s strategy shifts to its transport and logistics division.
Bidding Interest Drops for Gulf of Mexico Leases
Industry interest in US Gulf of Mexico acreage declined in the number of bids and the dollars offered at the latest federal lease sale, compared with the prior sale. But there was still some confidence shown in higher risk prospects.
Shell Expands Investments in Solar Energy
Shell invested in a Singapore solar company and signed an agreement to purchase a Texas company with solar and other renewable assets. Along with its minority stake in a company that uses solar to generate steam for EOR in the Middle East, Shell catches some rays in the Asia Pacific, US, and Oman.
US Sanctions Hit New Russia Projects, Add Uncertainty
The new US sanctions against Russia will place added restrictions on international companies taking part in oil development projects with Russian companies and raise doubts about Russia’s plans to expand pipeline exports.
Bringing Light to Africa
Many new developments in African exploration and production hold tremendous potential to bring more energy and prosperity to the continent—and shine a light of affordable, abundant energy.
ADNOC Case Studies Illustrate Importance of Technology Qualification Process
ADNOC’s authority on technology maturity describes the case studies used to test the company’s new technology qualification process.
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