E&P Notes (November 2017)

E&P Notes Permian Winning Streak Could Be Running Out Stephen Rassenfoss, JPT Emerging Technology Senior Editor Hot shale plays tend to fall short of expectations after a few years, and the Permian Basin will be the next big test of the pattern. A recent technical paper by Robert Clarke, research director for Lower 48 Upstream for Wood Mackenzie, questions whether future drilling in the Permian will hit 5 million B/D in 2025 as the consultancy has predicted. Based on what he has been learning recently, some of it reported in SPE technical papers, the actual results could be worse or better, depending on how well the industry solves the problems that will come with intensive development in the Permian. Startup Aims To Advance Rocket Fuel Technology for Fracturing Stephen Whitfield, Senior Staff Writer A startup company in Canada is developing a tool that may help operators realize savings in resources and manpower in their fracturing operations. The PSI-CLONE tool from RocketFrac Services uses a proprietary solid rocket fuel mixture as a propellant fracturing mechanism which eliminates the need for significant water volumes. When loaded into the tool, deployed down a well, and ignited, the propellant releases high-pressure gas and creates enough pressure to produce fractures at targeted sites along the wellbore. The PSI-CLONE tool, which holds the propellant, is reusable. Once the propellant has burned out completely, the tool can be reloaded with another block of fuel. The company states that the system requires a single coiled tubing unit, as opposed to the multiple pumper trucks and water tanks used for hydraulic fracturing, and requires three to five onsite personnel Total Signs Deal With Chevron for Gulf of Mexico Acreage Supermajor Total increased its footprint in the US Gulf of Mexico, capturing seven prospects operated by Chevron. The agreement covers 16 blocks. Total, which recently increased its stake in the US Gulf of Mexico with its takeover of Maersk Oil, will participate in the seven wells through sharing between 25–40% interest. The prospects cover two promising plays: the Wilcox in the central Gulf of Mexico, next to the Anchor discovery; and the Norphlet, in the eastern Gulf of Mexico, near the Appomattox discovery. The first well already spudded in late July on the Ballymore prospect in the Mississippi Canyon. Energy Panel: Efficiency Focus Still Necessary in an Era of Transition Stephen Whitfield, Senior Staff Writer The oil price downturn has changed the way the oil and gas industry does business, and a panel of analysts and industry executives said that reinvention and creativity will be essential to surviving in a new reality. Held at the Global Energy Transitions Summit on the Rice University campus, the panel discussion featured an extensive look at how companies have managed to stay afloat in the current economic landscape. In September, oil prices reached their highest levels since April, but while industry hopes to see that figure sustain above $50/bbl and possibly reach $60, the panelists cautioned against getting overly enthusiastic. Greg Hill, president and COO of Hess, said “lower for longer” was still the primary factor behind his company’s operational strategy, and that it is not advantageous to build a business plan based on the possibility of future oil price growth.

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