bluuebunny/crossref_metadata_2025 huggingface dataset:
Considerations in Buying Oil and Gas Production
Authors: Zeid Marvin C.
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

Introduction

We are in an extremely fascinating industry - not only considering the oil industry as such, but especially one of the more interesting phases of it that we as petroleum engineers are engaged in. That is, petroleum engineers are engaged in. That is, the buying of producing oil and gas properties. The buying of producing oil and gas properties is a natural adjunct of the oil industry, which is essentially a trade industry. Once the liquid or gaseous product is located and is brought into production, it assumes a value. We as engineers have or should have the technical ability to estimate properly how much of this product is located in a particular reservoir and is recoverable by known means. Then by utilizing this estimated amount and applying the proper economic factors, we can determine a value for a particular well or wells, oil and/or gas field, or a group of fields. There is always a temptation for an engineer, when evaluating a prospective purchase, to take the attitude that since, "I purchase, to take the attitude that since, "I am technically qualified," it is my function to look at the safety factors involved in the estimate or, as I maintain, take the negative approach, and look for reasons why the purchase should not be consummated. That is always the safe, but as I strongly believe, the wrong approach. The purpose of this paper is to emphasize the point that in order to buy production we have to properly evaluate all production we have to properly evaluate all factors, both technical and psychological and, in fact, be in the "buying mood". If we have a purpose and a reason together with the purpose and a reason together with the wherewithal to buy, then in order to do so, we have to think positively and look at the plus factors involved and weigh them in their proper perspective with the existing negative factors. perspective with the existing negative factors. Of course, if at the outset we see too many negative factors, then we should not pursue the purchase. However, if the proper plus factors purchase. However, if the proper plus factors are present and there is a probability of a trade, our main function as engineers engaged in property acquisitions should be to try to make property acquisitions should be to try to make the trade based upon the best technical and economic basis. Obviously, in order to do so we have to explore positively the reasons to make the trade.

WHAT DOES A BUYER PAY FOR PRODUCTION?

An often-used statement is: "The purchase price for a property is its fair market value." price for a property is its fair market value." As we know, this statement has many definitions The most commonly used is that the "fair market value" is the price that a willing buyer will pay a willing seller at the market place. This pay a willing seller at the market place. This in itself implies a trade type of psychology.
Energy Concepts and Misconceptions Held by the U.S. Public
Authors: Merklein H.A.
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

The U.S. Congress, being an elected body, reacts to public opinion on any issue, including the energy issue. But public opinion is considerably misinformed, as a survey of executives of the American Business Press reveals. Press reveals. This paper posits that the term "energy shortage" is synonymous with the term "underpriced energy." With this definition in mind, some of the fears and misconceptions held by the U.S. public are identified and analyzed.

Introduction

In January 1976, the author was approached by the American Business Press with the request to give a Press with the request to give a paper on the energy situation, on the paper on the energy situation, on the occasion of their 1976 Annual Meeting. The American Business Press is an association of publishers of specialized business magazines covering a variety of industries such as chemical, banking, metalworking, mining, construction, medical, and many more. Approximately 500 top flight magazines are represented by the American Business Press.

The task was both challenging and frustrating. Its challenge lay in the impact such a paper could conceivably have since public opinion formers of practically every major U.S. industry were present. Its frustration was the communication threshold, the problem of coming across to a uniquely intelligent and articulate lay audience with a convincing analysis of a somewhat complicated process. Realizing that the audience would have legitimate questions and apprehensions, it occurred to the author that their apprehensions might not be the same as his. If so, he would deliver his paper on a totally different wave length, dealing with problems which in their opinion did not exist and ignoring trifles which were perceived by them to be grave problems.

These different perceptions are not solely a reflection of different industry representations.
Exploratory Prospect Evaluation by Monte Carlo Simulation
Authors: Fagerstone Dennis E. , Dalto Steven J.
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

Introduction

The information upon which exploratory prospect evaluation is based will commonly prospect evaluation is based will commonly entail a great degree of uncertainty. Some value for reserves must be determined from a combination of parameters. Each parameter may be expressed as some possible range of values derived from the best available data for the objective to be tested. The stochastic nature of the controlling variables has led to the application of Monte Carlo simulation, which provides for this uncertainty through random provides for this uncertainty through random sampling of parameters that cannot be assigned a discrete value.

The use of Monte Carlo simulation under a variety of circumstances has been discussed in the literature. A classic paper on the method was published in 1964 by Hertz, and the adoption of the technique by analysts and engineers within the petroleum industry became apparent from reports beginning in 1967. It has been applied to engineering and log analysis, and used to include uncertainty in a complete reservoir-evaluation program. The determination of drilling venture profitability was described by Newendorp and Root, and Smith has proposed Monte Carlo simulation models that proposed Monte Carlo simulation models that apply to all stages of exploration and development. These existing concepts form the theoretical basis for the model presented here.

The presence of uncertainty in basic data will not always preclude the requirement for a specific quantitative answer. The purpose of the development outlined in this paper was to construct a tool that would provide such a result. Monte Carlo simulation has been used to generate multiple cases that reflect the effect of uncertainty upon potential profit, with the evaluations for each trial combined to produce a dollar value for the prospect. produce a dollar value for the prospect. The model, named MOCASIM, has been designed to account for the probabilistic nature of parameters that enter into the determination of parameters that enter into the determination of reserves. It provides for analysis from the time acreage is acquired until the prospect is condemned or any reserves are depleted. It is assumed that development and operations will occur under conditions consistent with established engineering practice. The treatment of these factors serves to distinguish his method from other working models presented.

The discussion that follows will present a complete description of a technique that has been utilized to evaluate exploratory prospects through Monte Carlo simulation.
Economic Analyses of Acceleration Projects
Authors: Aguilera Roberto
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

This paper analyzes the most important aspects for economic evaluation of acceleration projects, such as rate of return, net present worth, and future worth modification for incremental ROR analysis.

It is shown that reinvestment of incomes is not necessarily implied by the rate of return calculation as claimed by most publications of the petroleum engineering literature. An petroleum engineering literature. An investor is interested in the rate of return for the specific project where he is going to invest, no matter how his incomes are reinvested. The rate of return gives the return that an investor receives on the unamortized investment at the end of each year.

If the incremental acceleration project yields dual rates of return, it project yields dual rates of return, it is better to resort to net present worth analysis. However, a modified incremental rate of return, can still be used in these cases as an evaluation tool. Examples are presented using data of previously published papers in the petroleum engineering literature. petroleum engineering literature

Introduction

Acceleration projects are of common occurrence in the oil industry. Examples are (1) conversion of wells from beam to hydraulic or electrical submergible pumping, and (2) infill drilling.

Investments in acceleration projects are usually of the mutually projects are usually of the mutually exclusive type, which means that out of two alternatives only one can be selected. If for example, a well is declining at a rate of 12%/year, one may consider the possibility of installing subsurface equipment with larger extraction capacity, to increase production, say by twice although the declining rate will also increase. Here, we can choose only one production alternative, which means that we are dealing with a mutually exclusive type of investment.
Use of Potential Gradients in Massive Hydraulic Fracture Mapping and Characterization
Authors: Bartel L.C. , McCann R.P. , Keck L.J.
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

Mapping of massive hydraulic fractures allows for their efficient use to stimulate natural gas production in tight formations. A mapping technique has been used by Sandia Laboratories in conjunction with industry in the Green River Basin at Pinedale, Wyoming and in the Wattenburg field near Denver, Colorado. Comparison of field data to model calculations shows that the electrical potential gradients produced by the direct electrical excitation of the produced by the direct electrical excitation of the fracture well and fracture fluid can be used to map and characterize massive hydraulic fractures. The direction and any asymmetry of the fracture can be determined.

Introduction

In April 1973, a special Natural Gas Technology Task Force issued a preliminary report on three major gas deposits in the Rocky Mountain region which cannot be exploited with current extraction techniques. The regions considered were the Green River Basin in Wyoming, the Piceance Basin in Colorado, and the Uinta Basin Piceance Basin in Colorado, and the Uinta Basin in Utah. The low permeability of the gas bearing sands in these basins dictates that extremely large fractures are required to provide adequate productivity. The report indicates that the gas deposits could be stimulated by massive hydraulic fracturing (MHF). Massive hydraulic fracturing stimulation consists of multi-stage sand and fluid injections that would potentially create long fractures (appx. 5000 ft.) over a large gross pay interval. To assess the efficiency of the MHF process, characterization information is needed on the azimuthal direction, length, and height of the permeable portion of the hydraulic fractures. In addition, for production application of MHF, similar information will be needed to affect optimum well placement to achieve overall efficient drainage.

Sandia Laboratories is currently developing geophysical diagnostic techniques to characterize and map massive hydraulic fractures. These techniques include the use of passive seismic signals created by the fracturing and surface electrical potentials created by injecting current into the casing of the fracture well. In this paper, the modeling and field results of recent tests for the surface potential technique will be given.

The electrical MHF mapping technique consists of measuring potential gradients at the surface of the earth. The potential gradients are a result of using the fracture well casing along with the associated fracture filled with a conducting fracture fluid as one current electrode and a distant well casing as the other current electrode.
Monitoring and Control Program for a Large Scale Miscible Flood
Authors: Davis J.A. , Blair R.K. , Wagner O.R.
Published: December 2007

American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc.

A hydrocarbon miscible flood project was started in the South Swan Hills field, Alberta, Canada, in July, 1973. In this operation rich hydrocarbon gas (solvent) is injected alternately with water into 22 injection wells. The flood is expected to recover 116 MM barrels of additional oil over that recoverable by waterflooding.

A comprehensive monitoring and control program was installed for this project to program was installed for this project to permit efficient operation and evaluation. permit efficient operation and evaluation. The program includes on-line chromatographic analysis of alternate NGL and gas supply streams and computerized calculation and adjustment of enrichment levels. The injection wells are automated to provide central metering and rate control capabilities. A variety of tracers were injected with both the solvent and water phases to permit tracking of the interwell movement of permit tracking of the interwell movement of the flood banks within a reservoir and a detailed sampling and analysis program has been instituted to monitor trace levels. Pressure survey programs and injectivity and Pressure survey programs and injectivity and production profiles are also run on the wells production profiles are also run on the wells on a regular basis to provide additional data to determine flood response.

Introduction

The South Swan Hills field, Alberta, Canada is a limestone reef of upper Devonian age at a subsurface depth of 8900 feet. It is developed on 160-acre well spacing and is comprised of 228 wells within the Unit boundaries. The Unit is presently made up of two separate projects; a waterflood started in 1963, and the miscible flood. The miscible flood project includes 116 wells of which 22 are injectors. The formation has two to four separate zones depending on the particular location in the field. The net oil-in-place and the recovery factors for each area are 580 million barrels for the miscible flood area, with a recovery of 65%, and 310 million barrels for the waterflood area with a recovery of 46% respectively. Current productive capacity of the miscible flood productive capacity of the miscible flood area is approximately 65,000 barrels of oil per day. To maintain a voidage replacement per day. To maintain a voidage replacement ratio of 1.0 the injection of 73,000 reservoir barrels of solvent and 58,000 barrels of water is required on a daily basis. The solvent volume is blended from approximately 14,000 barrels of LPG's and 50 MMCF of gas. The miscible flood area is divided into 21 separate patterns each with a central injector, as shown on Figure No. 1. These patterns are used as the basic element in patterns are used as the basic element in injection control and production scheduling. For injection and production wells on the dividing lines between patterns, one-half of the well is allocated to either pattern.
Development of an ISO 14001 Certified HSE Management System in a Large E & P Company
Authors: Cramwinckel Joppe , Thummarukudy Muralee
Published: December 2007

In 1997 Shell set a target of setting up a certified environmental management system in all its operating units by end of 2000. PDO was one of the first operating companies to take up this challenge. A number of learning points have evolved from the ISO implementation experience and this paper presents those learning point.

PDO is a big E & P operation producing about 850.000 barrel of oil per day, from oil field spanning across 1000 kilometers. The concession area is divided into six Product Flow Asset Teams (PFATs). In addition there are various service providers to these PFATs. The intricate web of division of responsibility between the PFATs and Service providers made it extremely difficult to force-fit an external system such as ISO 14001 into PDO.

PDO managed this challenge by following a multi-phased strategy. The existing environmental management system was integrated in a HSE Management system and it would be unwise to split to disengage the environmental component from the system only to satisfy the requirements of ISO 14001. Consequently the existing PDO system was reviewed and strengthened to meet the requirements of ISO 14001.

Secondly, one of the assets was chosen to pilot test the ISO implementation. This was done so that corporate effort could be concentrated on upgrading the corporate elements of the system, identifying pitfalls in implementing the system at asset level, while other assets could be familiarized with the implementation process. This strategy ensured that by the time the first asset was certified, the corporate elements were already meeting the ISO requirements and manpower across the asset was trained to implement the system in their own assets.

Upon successful completion of the ISO 14001 certification of Marmul Asset, PDO moved onto setting up the implementation processes for all other PFATs and service providers. Having sorted out the corporate elements, the corporate advisors were able to provide maximum support to implement the system at asset level. The implementation process was channeled through an asset ISO 14001 focal point. A gap analysis was done in each of the assets and an implementation plan was prepared. ISO focal points met once every week sharing their experiences and tracking progress. Whenever a number of assets highlighted a specific issue, corporate attention was given to it, which often included external resourcing. A number of innovative communication tools were developed during the implementation exercise to disseminate the ISO implementation at all levels of the organization from top management to the operators.

The paper discusses in detail the various steps undertaken by PDO to attain the ISO certification. Special attention will be given on timeframe, resources and communication.
A Mechanism to Reduce the Environmental Impact Together
Authors: de Jong J. W. , Henriquez L. R.
Published: December 2007

In the Netherlands a voluntary environmental agreement is used as a mechanism to achieve improvement with regard to reduction of environmental pollution resulting from the E&P activities. Experiences with this mechanism have improved the understanding between the E&P industry and the Government with regard to the implementation of environmental measures. The Dutch government improved their knowledge in such a way that quantified environmental performance indicators for each individual E&P operator have been derived using the benchmarking process as described in the ISO 14000 standards. From this benchmarking the Government has assessed the Best In Class among the E&P operators. This approach has been used as a driving mechanism to stimulate the improvement of the environmental performance of those operators. By applying the voluntary agreement mechanism the E&P industry together with the Dutch Government have achieved to reduce the environmental impact together, especially with regard to the emissions to air.
Shared Values and Environmental Regulation of Oil and Gas Industry Operations: A World-Wide Perspective
Authors: Stuart Graham
Published: December 2007

Environmental law has an essential role to play in achieving "progress through sharing values". This paper focuses on shared values in the regulatory sense, examining legislation that provides opportunities for the public to participate in and contribute to regulatory processes concerning the application, implementation and enforcement of environmental controls.

This paper examines the current status of legislation governing public participation rights and considers the potential impact of such rights on the environmental regulatory process. It provides a comparative analysis across a selection of jurisdictions of laws that provide for public involvement in the regulatory process, with a view to identifying areas of common practice and significant divergence. The emphasis is on laws that encourage public participation in environmental decision-making but references are also made to the development of laws that allow citizens to become involved in enforcement procedures. The countries surveyed are drawn from a regional cross-section of South America, Europe, Africa, the Middle East, Asia and the Far East.

This multi-jurisdictional analysis demonstrates the extent to which public participation rights have proliferated across the world, but also reveals significant variations in the form and content of these rights. It also highlights the particular features of regulations governing participatory rights that have the potential to expose projects to the highest level of public scrutiny. The paper concludes with an assessment of the potential impact of such rights on regulatory compliance during oil and gas industry operations.
Developing New Environmental Regulations for the Australian Offshore Petroleum Industry
Authors: Cobby Graham L.
Published: December 2007

On the 1 October 1999, new environmental regulations specific to the offshore Australian exploration and production industry, titled Commonwealth Petroleum (Submerged Lands) (Management of Environment) Regulations 1999, were introduced. These regulations adopt an objective, risk based approach, replacing an essentially prescriptive regime of directions previously used to regulate existing offshore activities. They represent a significant change to offshore environmental management requirements.

The regulations were developed by a working group consisting of key stakeholders from government, industry and non-government organisations (NGOs). The NGOs were represented by members of Greenpeace. Agreement was reached by all stakeholders enabling the respective Ministers to endorse the regulations in the knowledge that economic, environmental and social values had been adequately addressed. The process of sharing stakeholder values in the development of these regulations has significantly influenced the content and direction of these regulations.

This paper reviews the requirements of the new regulations, compares and contrasts the new regulations with the previous prescriptive regime, and considers the overall effectiveness of the consultation process.
Promoting a Positive Net Benefit to Biodiversity from E&P Projects in Sensitive Ecosystems
Authors: Sweeting Amy Rosenfeld , Prickett Glenn T. , Sugal Cheri A.
Published: December 2007

Oil and gas exploration and production in sensitive ecosystems presents both risks and opportunities for biodiversity conservation. Any petroleum E&P project in a sensitive environment should have as a goal ensuring that the project's presence in an area results in a positive net benefit for biodiversity conservation. This strategy has two, integrated components: minimizing the negative impacts, both direct and indirect, of project activity, and making a positive contribution to conservation, to ensure that benefits outweigh costs. This paper discusses the concept of positive net benefit and then briefly reviews examples of positive contributions to biodiversity conservation by oil and gas companies operating in sensitive environments.
Mental Health of Expatriate Oil Workers on Extended Twelve Hour Shifts in a Desert-Based Oil Field
Authors: Jackson C. A. , Spurgeon A. , DeJong G. , Haag Den
Published: December 2007

The mental health of workers who are exposed to extended twelve hour shifts in a hostile desert environment for periods of 28 consecutive days and 56 consecutive days (standard vs. extended "hitches") was assessed. Measurement of short term mood showed that workers operating under both work schedules underwent significant increases in fatigue over the duration of a hitch. Standard hitch workers also reported increased confusion, with extended hitch workers reporting increased anger and decreased vigor. Extended hitch workers showed greater somatic symptoms, anxiety / insomnia, and overall psychiatric state at hitch end than hitch start. At hitch end, extended workers also had a global psychiatric state above the clinical threshold that indicated clinical significance. There were no such mental health effects for standard hitch workers. After adjusting for covariates of actual hours worked, pay rating, and stressful events in personal life, it was found that there were no differences between standard and extended hitch workers on measures of mood state or mental health at either hitch start, hitch end, or hitch start six months later. These results suggest that there are detrimental short term consequences of the current work schedules, more so for extended than standard hitches. No long term mental health effects were identified as a result of hitch schedule, and any short term mental health and mood state differences found between workers under different hitches were negated after adjustment was made for the psychosocial modifying factors outlined above. Other lifestyle factors that were identified as being beneficial to workers’ mental health and short term mood states were exercising during hitch, and a feeling of low stress and annoyance during hitch. Workers who were parents also showed short term benefits in selected mood states at the start of hitch. Long term mental health effects of increased social dysfunction (possibly poor adjustment at hitch start) were shown in workers with low occupational satisfaction, and greater short and long term depression was found in those workers with no previous experience of working away from home.
CO2 Recovery for Sequestration from a Solid Oxide Fuel Cell Power Plant
Authors: Li K. J. , Haines Mike , Heidug Wolf K.
Published: December 2007

Norske Shell plans to develop and demonstrate a new technology for power generation from natural gas, which allows efficient and economic capture of the exhaust CO2 for subsurface sequestration. The technology will be suitable for deepwater offshore deployment on floating production facilities. The demonstration project will be a showcase for sustainable development principles, as it will provide power, heat and nutrients to a fish farm

Key Themes

CO2 capture allowing sequestration Development of high efficiency fuel cells Integration with another key Norwegian Industry – fisheries
A Decision Support Framework for Greenhouse Gas Abatement in the LNG Industry
Authors: Waller Steven L. , Bennett Allan T. , Baskind Pamela
Published: December 2007

The outcome of the Kyoto Protocol has placed emission limitations on the countries of Annex B to the Protocol, in the case of Australia the assigned amount is 108% of its 1990 emissions. Industries intensively producing or using fossil fuels may chose to undertake voluntary action to reduce emissions or they may be subject to mandatory measures imposed by governments as they seek to meet the Kyoto target. Such measures should be demonstrably least cost or ‘no-regrets’. There is a need to address the range of possible technological abatement measures undertaken by companies in a structured manner so the whole range of possible measures are identified, the marginal cost and the emission abatement potential of each option is evaluated as a necessary precursor to a systematic strategy for emission abatement being formulated. Described in this paper is a process utilised by Woodside Energy Ltd, the operator of the North-West Shelf Venture LNG Project in Australia to systematically identify options available to reduce greenhouse emissions. The paper describes the methodology to calculate the net benefit of each option, including a Benefit/Cost Analysis that utilises 3 distinct cases against a ‘business as usual’ baseline. The cases considered are with no greenhouse values, with private values only and finally with private and societal costs included. The final step is to rank alternatives according to cost and emission effectiveness. The process is then applied in a case study looking at the alternatives for co-absorbed hydrocarbon venting reduction measures from an acid gas removal process.

The outcome of the process provides a clear view of the private and societal values of greenhouse and other emission abatement measures on LNG facilities.
Laboratory Assessment of Biodegradation of Non Soluble Drilling Mud Base Fluids Under Nigerian Environmental Conditions
Authors: Imevbore V. O. , Nwankwo J. N. , Ifeadi C. N. , Ladan M. D.
Published: December 2007

In Nigeria today, the environmental acceptance of a non water-soluble drilling mud base fluid depends not only on its toxicity as measured from traditional bioassays, but also on its biodegradation under aerobic and anaerobic conditions. Presently, however, there is no widely accepted laboratory method for biodegradability assessment of drilling fluids.

Based on its relevance to environmental conditions affecting the biodegradation of drilling fluids, the recently developed Solid Phase Biodegradation Test Method was chosen for assessment of drilling fluids in Nigeria. The test was modified, essentially to ensure better simulation of Nigerian environmental conditions. Thus, the Nigerian version of the method is a 60 day "closed system" Test that entails the assessment of a given sample in both fresh and brackish/marine water simulated environmental conditions.

The biodegradation assessment of three drilling fluid types: an ester, an olefin and a mixture of both was carried out using the Nigerian version of the Solid Phase Test. The results obtained are presented in this paper. They compare favorably with and validate other Solid Phase Test results, which show olive oil to be a ready degradable substance and esters as having a generally higher percentage degradation than other synthetic base fluids. In this test, percentage biodegradation was observed to be higher in the brackish/marine water than in the freshwater simulated environment.
Use of Fuzzy Sets Theory in Qualitative and Quantitative Risk Assessment
Authors: Zolotukhin A. B. , Gudmestad O. T.
Published: December 2007

Risk analysis has become a powerful tool for identifying technical solutions, procedures and operations with high risk and is extensively used in the offshore industry. Risk analysis is also used to identify, assess and compare risk reducing measures such that the operations can be carried out within the acceptance criteria set. These analyses can thus be used by company or project management for decision support.

For operations or events where a data base exists, which is representing the probabilities of the different accidental events, the risk figures estimated in a quantitative risk analysis can be considered to represent fairly accurately the risk involved when carrying out said operations.

In the case of special operations where little previous experience exists, however, one has to rely on the experience and belief of experts in order to establish probability figures. In a Bayesian risk analysis approach, the values suggested by the experts represent the uncertainty in the expert's estimate. The risk values calculated may not accurately represent the full risk involved in carrying out the operations, but use of specialists is thought to be a useful tool to rank different options and is applicable for selection of the most proper risk reducing methods.

The objective of this paper is to show how the information and assessment provided by the experts can be used in the most proper way to quantify possibilities for accidents in a risk analysis. We will use fuzzy sets theory, which is a tool that is mathematically stringent and well established to quantify possibilities of accidental scenarios relying on the experts' assessments. We will show how this theory in practice can be used as an elegant method in both qualitative and quantitative risk analyses.

The paper illustrates the use of fuzzy set method by assessing the risk for offshore tow operations and by comparing the results obtained with the data of a conventional risk analysis for a complex tow of the deck of an offshore platform.
Health and Safety Performance in Design Management
Authors: Findlay K. , Al-Hassan T.
Published: December 2007

Since the introduction of the Offshore Installations (Safety Case) Regulations 1992 and other goal setting legislation such as the Offshore Installations and Pipeline Works (Design and Construction) Regulations 1995, the HSE OSD has undertaken the examination of a number of new projects undertaken by dutyholders. During 1998 and 1999 a number of design management theme audits (design reviews) were undertaken with a view to determining the key processes which have an impact upon health and safety performance during design management from conceptual selection through to detailed design, construction and commissioning. This paper discusses the principal findings from the audits. It also describes how HSE OSD is taking forward the findings through the various tools it has at its disposal.
Helicopter Safety Study 2 - A Report on North Sea Helicopter Operations
Authors: Hokstad Per , Jersin Erik , Sten Terje
Published: December 2007

The helicopter transport represents one of the major hazards in North Sea oil and gas production. Seven oil companies have therefore initiated a helicopter safety study, carried out in 1997-1999. Main objectives were to assess the present risk level of this helicopter traffic, and to predict the effect of possible operational and technical changes (e.g. risk reducing measures).
Making In-Vehicle Monitoring Systems Work
Authors: Twilhaar Dick Nijen , van Schagen Ingrid , Kassar Bassam
Published: December 2007

Syria Shell Petroleum Development is a joint venture partner in major EP activities in Syria. Many road transport fatalities were associated with these activities and therefore it was decided to try to improve this grim state of affairs by executing a dedicated road safety program fully funded by Shell. Drastic improvements in the road safety statistics were seen since then. The average number of fatalities dropped from more than 5 per year to 1. This paper gives you some brief highlights of the various initiatives aimed at reducing road transport fatalities. In spite of the drastic improvement in road safety it was recognised that the unsupervised driver in his vehicle remained the weakest element in ensuring safe road transport. In-Vehicle Monitoring Systems (IVMS) are often seen as the solution for this problem as it offers a means to supervise drivers. Unfortunately, the application of the "conventional" IVMS technology is often less effective. As part of the road safety program a novel method aimed at aligning drivers’ short-term benefits with long term safety interests by using IVMS was developed. The second part of the paper describes this novel approach and gives the encouraging result of a field trial as carried out in Syria. It is shown that substantial improvements in accident potential can be accomplished by using this novel way of applying IVMS. These results were accomplished without the usual problems associated with using IVMS and with hardly any noticeable burden on the organisation.
Measuring Very Low Residual Oil Contents on Cuttings: A Challenging Approach of the Zero OPF Discharge Option.
Authors: SAINTPERE Stéphane , MORILLON-JEANMAIRE Anne
Published: December 2007

The discharge of waste containing OPF (Organic Phase Fluid including Low Toxicity Fluids and esters) such as drilling cuttings will gradually be banned from a number of regions throughout the world. In the North Sea, by the end of year 2000, dumping into the sea of OPF drilling cuttings will definitely be prohibited. Nevertheless, as wells are becoming more and more sophisticated, the use of OPF as drilling fluid is actually the only viable option to succeed.

For the time being, cuttings re-injection and ship-to-shore appear to be the most probable options, but they involve a significant increase in operating cost, unless R&D efforts on new separation treatments enable cuttings to be cleaned to an extremely low residual oil content.

If a major breakthrough that could decrease the final residual oil content to around 0.5% or less (0.5 g of oil by 100 g of dry cuttings) can be envisaged, what will be the position of the authorities regarding cuttings discharge? Is "zero %" OPF content on cuttings before discharge reasonable and achievable? But first of all, is such a very low content measurable with precision on the rig site?

This paper provides answers regarding the sensitive problems of measuring a very low oil content on a mineral substratum. A comprehensive study has been performed aiming at comparing the performances of 2 different methods used in the oil industry: direct distillation with visual reading, and distillation/pyrolysis followed by an evaluation of the Total Organic Carbon (TOC) by a Flame Ionization Detector (FID). The conclusion is that the distinction has to be made between TOC and residual oil content (ROC). The method based on thermal extraction with control of the temperature slope, enables the determination of the different origins of the organic matter and clearly demonstrate the need for criteria: even Water Base Mud (WBM) cuttings can contain organic matter (from 0 to 3%), such as kerogen, that should not be taken into consideration when evaluating oil content by thermal methods.

The authors hope that the presented results could help to define a set of standard procedures to evaluate the residual oil content on cuttings.
Introducing Sustainability into your Business Plan
Authors: Allam H.
Published: December 2007

The Royal Dutch Shell Group's 1997 policy on Health, Safety and Environment included a commitment to sustainable development. Since then there has been a struggle to grasp the concept and to identify areas in which our inherently unsustainable business can make its mark. Shell has interpreted the Brundtland Commission's definition of sustainable development in terms of three fundamental pillars: economic growth, environmental conservation and societal gain.

This paper follows ‘Shell in Egypt's journey from making the commitment, through a phase of ad hoc contributions, and to a stage where sustainability is managed as any other business item.

The ultimate aim of the paper is to demonstrate how sustainability will be introduced into the corporate business plan, as a measurable item against which we can measure our performance, be audited and benchmark. Also to offer ideas as to how this can be achieved in other companies.
Sustainable Development - Implementation Strategy for a Global Exploration and Production Business
Authors: Bradley A. S. , Hartog J. J.
Published: December 2007

Since the Royal Dutch/Shell Group made a public commitment to contribute to sustainable development (SD), extensive work has been undertaken to turn this into practical reality and integrate the concept into business activities. In Shell EP, a framework has been produced to guide the development of the business in line with the concept of SD. The cornerstone of the approach is six sustainability principles, applicable from the corporate to site level. Each Shell EP company has used the principles to frame a strategy and assess their own course and contribution to SD, reflecting their individual operating environments, culture and stakeholder values.

The paper provides a background to the approach developed and discusses progress to date. Examples from several Shell operating companies illustrate how SD considerations are being integrated into activities and how work is being taken forward. The focus is on the ways that the EP business may contribute towards sustainability goals. Movement by EP companies into other energy sectors such as renewables is not considered.
Well-Testing Fluid Disposal in an Environmentally Sensitive Offshore Area
Authors: Doring U. K. , Le Foll P.
Published: December 2007

Exploration well testing in an environmentally sensitive offshore area presents technical and economic challenges to the oil and gas industry. This paper presents the approach recently taken in the La Vela Costa Afuera concession, an offshore block in an environmentally sensitive area, located off the northeastern coast of Falcon State in Venezuela. Given the very strict guidelines enforced by the Venezuelan environmental authorities, and the waxy nature of the crude expected, the initial choice at planning stage was to opt for a zero-liquid flaring solution. This meant mobilizing a floating production storage and off-loading (FPSO) system or a rig supported crude stabilization process and a suitable transport vessel. There was also the Venezuelan Ministry of Energy and Mines (MEM) desire not to waste the commercial value of Hydrocarbons.

Such solutions imply substantial operating costs, in particular with respect to the short duration of the exploratory well-testing activities. These costs justified investigating alternate, more cost-effective solutions that would also meet the environmental requirements.

An environmental impact study was conducted by an independent consultant that included an evaluation of fallout from oil flaring, impacts of emissions and heat radiation. Inputs from the operator, the local environmental authorities and the well-test oil burner manufacturer were used to evaluate the environmental effect of burning the waxy crude oil.

The study covered health, safety and environment (HSE) considerations such as hazard identification, pollutant dispersion study, oil-spill contingency plans, and rig and personnel safety.

The results were presented to the Venezuelan authorities, and permission to flare was granted by the Ministry of Environment, Ministry of Energy and Mines and the national oil company Petroleos de Venezuela S.A. (PDVSA).

Oil with a 35 to 40°C pour point, 33°API gravity and containing as much as 35 to 40% paraffin was successfully flared using a new well-test oil burner. Thorough observation confirmed that no oil fallout occurred during the continuous flaring operations, some of which lasted up to 23 hrs.

Careful analysis of the risks, use of the latest flaring technology, and early coordination with the environmental and other governing authorities demonstrated that even the most stringent environmental requirements can be met without incurring high operating costs.

Well-testing fluid disposal using latest flaring technology can be a viable, cost effective, and environmentally sound solution.
Assessing Cost Effectiveness of Environmental Control Measures
Authors: Powell S. M. , McKelvie S. , Blanchard J. R. , Payne M.
Published: December 2007

A practical methodology has been developed to assist project managers in the oil and gas industry identify the appropriate level of expenditure on control measures to achieve a significant improvement in environmental performance. The methodology is envisaged as a high-level, quantitative screening tool which can be supported by detailed studies where required.

The methodology is based on the existing principles of cost-benefit analysis. Within the industry, these methods are used for risk assessment and are therefore consistent with accepted practices. The method is able to quantify environmental impacts from all major hazards and identify environmental improvement resulting from the introduction of a control. It has been developed to be relatively easy to apply by non-environmental specialists and sufficiently flexible to allow application within a wide range of situations, worldwide.

A spreadsheet has been developed based on a series of environmental value and environmental impact cost matrices. These provide estimates of the costs of potential environmental damage within a variety of ecosystems ranging from open ocean to estuaries, wetlands to desert and urban areas to tropical forests. To refine the assessment, site specific estimates of the costs of environmental effects can be used.

The costing tool allows environmental risks and impacts to be quantified and places them within a monetary framework where they can be assessed alongside other technicological and financial project drivers.
Harmonization of Russian and Western HSE Norms and Standards
Authors: Nikitin B. , Jouravel V. , Mansurov M. , Mirzojev D.
Published: December 2007

Growing activities for oil&gas exploration and production on the Russian continental shelf marks last decade. Most executed and planned projects are presumed to be developed by international technical and financial participation. There is historical difference between Russian and Western approach to safety regulation and procedures regarding offshore oil and gas activities, causing problems in joint activities. Bearing this in mind several co-operation projects are carried out in Russia, both on governmental level and by oil&gas companies. The paper describes new step-by-step approach developed and applied in Russia to enable timely regulatory preparations for endorsing acceptable HSE requirements in the conditions of existing legal climate. The approach means two activities performed in parallel: (i) analysis of existing regulatory problems, gaps and discrepancies and elaboration of first order norms and standards within the specially established Technical Committee under the umbrella of State Standard Committee, and (ii) development of Special Technical Conditions to prevent potential risks and delays for specific projects. Reported approach is described in details and endorsed by some examples showing its practicability during overcoming period. Authors represent their vision of expected progress in HSE harmonization.
The Life of a Great Old Lady and Workforce Involvement During the Life of the Frigg Field
Authors: Atkinson A.
Published: December 2007

The Frigg Field, is an offshore oil and gas production complex in the North Sea, lying on the boundary between Norway and the UK. Since the start-up of the field in 1977, the operator of the field, Elf Norge has believed in workforce involvement and has actively facilitated this process. Over the years, Elf has provided for full-time salaried employee representatives to deal with union and safety, health and welfare matters, which has enabled the operator to keep an open dialogue with it's employees.

It is important to mention, that on only a very, very few occasions, over more than twenty years of operation, the daily nomination of gas production for the customer, has not been met.

From the start of the decline of the Frigg Field in the late eighties, workforce involvement was seen as an important issue when it came to achieving the best results for the future, for both the operator and for the employees involved. Re-organization and down-manning projects have actively used workforce representatives as a valuable resource to produce the best solutions.

This paper will attempt to show how the active involvement of the workforce during the life of an offshore installation has benefited both the operator and the employees in areas such as safety related matters, flexibility of operations and personnel and cost reduction.