bluuebunny/crossref_metadata_2025_split huggingface dataset:
Heavy Oil, Reserves, Industry Challenges Highlight ATCE
Authors: JPT staff _ 
Published: February 2015

Panel discussions on heavy oil technology, reserves classification, and changing industry demographics highlighted the 2006 SPE Annual Technical Conference and Exhibition ((ATCE) in San Antonio. More than 500 technical papers on innovative technologies, case studies, and best practices, along with an exhibition showcasing more than 400 companies, rounded out the event, which attracted approximately 99,300 industry professionals.
The opening general session featured a wide-ranging discussion on a topic that high oil prices and rising global demand have pushed into the spotlight. "Heavy Oil—From Rock Face to Fuel Pumps" featured Vikram Rao, Vice President of Technology for Halliburton Energy Services; Robert Skinner, former Director of the Oxford Inst. for Energy Studies; Murray Smith, Minister-Counselor of the Government of Alberta, Canada; Sylvestre Calmon, Manager of Refining Technology at Brazil state oil company Petrobras; and Don Paul, Vice President and Chief Technology Officer for Chevron.
Although heavy oil shows great promise to help satisfy growing global demand, its development is not without significant technical, financial, and environmental challenges, the panelists agreed. Panel moderator Rao noted that, unlike conventional oil production, heavy oil has closer links with lifting, transporting, and refining, which makes its development more complicated. Heavy oil is difficult to move, requires sophisticated refinery configurations for processing into consumer end products, and produces CO2 emissions.
Skinner said that companies are putting more money into heavy oil development, especially in western Canada, because there is little geological risk, there are long-term predictable growth rates, there is a technology upside, and the projects are winning approval from financial markets. "But it's not all a rosy picture" in the Canadian oil sands, he said, because of the shortage of both technical and general labor, the high capital expenditure involved, and the operational risks of working in a northern environment. Venezuela's Orinoco belt actually offers better economics for heavy-oil production, but political risk deters investment there, he said.
Offering a resource owner's point of view, Smith said he believes Canadian oil production may grow faster than OPEC output in the near future and will play an increasingly important role in meeting U.S. energy consumption. "Alberta will contribute significantly to U.S. imports over the next 20 years," he said. Oil-sands reserves total 174 billion bbl, of which approximately 20% are recoverable by mining and 80% by steam-assisted gravity drainage, he added. Western Canada is definitely experiencing the strain of increased activity and needs pipeline expansion, new refineries, retrofitting of existing refineries, and a larger labor pool. "We are really feeling the pinch of not training enough professionals" from the mid-1980s on, he said of the oil and gas industry.
Preparing a Business Case for Technology Investment in Production Operations
Authors: Hite J. Roger , Farid Kemal , Blanton M. Lee , Gard Fred , Crawley Charles 
Published: February 2015

Broad support exists in the leadership of most large oil and gas companies for a version of the digital oil field as a strategic direction, but there is difficulty at the implementation level in building a convincing case for investment. Implementation seems slow, perhaps because generating a convincing business case for incremental investment is challenging.
Winning acceptance for new computing, automation, and communications technology* (CACT) in the oil patch is always a challenge, and one that begins and ends with a convincing business case. A good business case speaks to decision makers in a language they understand. It outlines in clear terms the benefits of the investment, its costs, and its risks. Each needs to be presented clearly, openly, and honestly.
A good business case is guided by five principles:Value is created only when good decisions are made and implemented. The value of an oil and gas asset derives from decisions made and implemented in the past—to drill wells, to complete them, to implement recovery processes, and to install facilities. Once decisions and investments are made, the assets are operated in a way to capture the intended value.
Oil fields do not exactly run themselves, of course, because numerous decisions are made every day to keep them running smoothly. Lift changes, new choke settings, changes in injection and production rates, and set-point adjustments are all designed to make sure the value of the original investment is achieved. Added value is created when decisions are made and implemented to add new assets, modify existing ones, or to change operating practices or procedures. It is important that these decisions be the right decisions made at the right time. Whether they are depends greatly on the quality of the information avail-able at the time.CACT investments affect decisions. Computers do not produce oil; they facilitate decisions. Thus, the value of investments in CACT derives from its ability to improve decision making or improve on the decisions that are made. Having more terabytes of data stored on a server does not help a bit. Rather, it adds cost. Likewise, storing production rates and pressures minute by minute does not add value. Faster communications, bigger computers, and more gadgets do not help unless they lead to better or more timely decisions.Real time is defined by the frequency of decisions that need to be made. Because the value of CACT investments comes from the decisions it influences, the frequency of data collection should be matched to the rate at which decisions can be made and implemented safely. The decision rate defines what "real time" really is. Information at time scales shorter than the rate at which decisions are made does not help because the information cannot be acted on that fast. Longer time scales may mean lost opportunities because decisions could be made faster if the information were there. Thus, "real time" is really "right time"—the right time for making decisions.
Overview: Production/Facilities (December 2006)
Authors: Richards Simon 
Published: February 2015

Welcome back to the Production/Facilities feature. This issue focuses on environmental and corrosion challenges. These challenges are especially important because the global production infrastructure is aging, with much of it more than 30 years old. These issues are, of course, intertwined because the materials and corrosion engineer spends much of his/her time preventing the produced fluids from escaping into the environment. This issue delves into new or revitalized developments in produced-water treatment. Concern has been mounting over the years regarding the effect on the environment of chemical treatments used by the industry when the chemicals are discharged with produced water, for example. New "green" corrosion inhibitors have been developed.
As well as preventing corrosion in susceptible materials, the materials and corrosion engineer also must be able to assess the effect of any corrosion that has occurred. State-of-the-art calculation of the corrosion rate is available. Also, a new approach has been developed to assess the internal condition of a pipeline accurately.
A low-cost water-purification treatment has been used in the sewage-treatment industry for many decades. It is being transferred to the petroleum industry. The use of reed beds is common as an alternative waste water treatment in remote areas. This method is being used in the Nimr field, onshore Oman. Essentially, the reeds capture the impurities through the root system, where they are held in the plant tissue. The plants then can be harvested and used as biomass fuel, for example, and the residual ash, which contains the inorganic impurities, can be disposed of safely.
Production/Facilities additional reading available at the SPE eLibrary: www.spe.org
SPE 100673 "Assessment and Comparison of CO2-Corrosion Prediction Models" by R.C. Woollam, BP plc, et al.
SPE 98854 "The Path to Zero Flaring in Zadco" by M.M. Misellati, Zadco, et al.
SPE 100412 "Prediction Equation of CO2 Corrosion With the Presence of Acetic Acid" by M.C. Ismail, U. Teknologi Petronas, et al.
SPE 103922 "Internal-Corrosion Direct Assessment for Multiphase-Flow Pipeline Systems" by P.G. Puente, SPE, Scandpower PT, et al.
IPTC 10548 "Produced-Water-Management Strategy Water-Injection Best Practices—Design, Performance, Monitoring" by A.S. Abou-Sayed, Advantek Intl. Corp., et al.
An Alternative Approach To Evaluate Internal Pipeline Condition
Authors: Bybee Karen 
Published: February 2015

This article, written by Assistant Technology Editor Karen Bybee, contains highlights of paper SPE 100727, "Alternative Approach to Internal-Pipeline-Condition Assessment," by K.E. Oliver, D.G. John, and A. Crossland, CAPCIS Ltd., prepared for the 2006 SPE International Oilfield Corrosion Symposium, Aberdeen, 30 May.
The full-length paper details an uncertainty-based probabilistic approach to determine the internal corrosion condition of a pipeline under varying operating conditions. This approach allows the risks associated with future maintenance options to be quantified.

Introduction
Pipeline-integrity management is becoming increasingly important to the oil- and gas-production sector. Tiebacks from marginal fields into existing pipelines result in aging pipelines being operated well beyond their original design life. New pipelines also are being constructed in increasingly challenging environments. All of these factors introduce greater uncertainty into prediction of future pipeline integrity. In-line pipeline inspection is expensive, but modeling of pipeline operating conditions can provide an estimate of metal loss when no detailed inspection data exist.
Historically, engineers have used conservative values when there were uncertainties about parameter values. These assumptions result in a worst-case output that may result in the pipeline being condemned. Developing a means to incorporate these uncertainties into corrosion-prediction tools allows a more accurate determination of risk and a better selection of control programs.

Uncertainty Modeling
A distribution of values is constructed for each uncertain variable used to calculate likelihood of failure. A number of different results can be compared for different operating scenarios. The risk of failure can be described in terms of probability of pipeline failure on a year-by-year basis for the scenarios.
Input-data uncertainties are described by a statistical distribution that is defined on the basis of operating data collected from the field. Current conditions can be assigned a distribution on the basis of the range of defects measured during an intelligent-pig or other inspection. Laboratory-test data can be used to assign corrosion-inhibitor efficiencies. Where there are no data, field knowledge can be used to assign a credible value range.
The distribution shape is based on the conditions surrounding the variable and therefore specific to the parameter in question. Typical distributions used include the following.Truncated normal distribution used for general-corrosion distribution.Log normal distribution used for pitting-corrosion defects.Triangular distributions used for inhibitor effectiveness and availability.Uniform distributions used for pressure.Minimum extreme distributions used for temperature under rapid-cooling conditions.
The distribution can be embedded in a standard corrosion-rate or metal-loss calculation by use of a Monte Carlo simulation that randomly generates values for the uncertain variable.
Overview: Reserves/Asset Management (December 2006)
Authors: Rietz Dean 
Published: February 2015

Looking through the abstracts of approximately 65 papers, and needing to select relevant papers for this feature, proved the following to me.My selections will leave some important and useful papers "behind."There is a wealth of experience to be shared among SPE members worldwide.The topic of risk and dealing with uncertainty continues to be a major theme—as well it should, because it is what we do on a daily basis as petroleum engineers.
To address my first issue, I simply tried to identify the papers that would have the broadest appeal to benefit the most readers. I would encourage you to search online (SPE's eLibrary) to find papers that are not listed here.
As for issue two, there were plenty of papers illustrating best practices or promising results and conclusions from case studies. Take note of the selected case studies, because the authors' experiences and observations can add to your repertoire of knowledge to improve the management of your own assets and projects, however different they may be from those highlighted.
As for risk and uncertainty, the selected papers help provide a better understanding of the topic by highlighting the latest developments and practices.
Finally, keep in mind that what we lack in experience (both successes and failures), we must make up for in terms of acquiring knowledge and risk/reward and uncertainty management. Our predecessors were able to conduct business based heavily on experience and the best understanding of the inherent uncertainties. This method may have been appropriate at that time, regardless of the project. Unfortunately, we have moved to the cutting edge of "mega scale" projects such as harsh environments or deep and ultradeep water that are so significant in terms of economic scale, human resources needed, and the complex interrelated components, that in some cases overall project management is almost beyond comprehension. Therefore, acquiring knowledge and understanding risk and uncertainty become as important as a lifetime of experience.
Reserves/Asset Management additional reading available at the SPE eLibrary: www.spe.org
SPE 97269 "Risk and Uncertainty Management—Best Practices and Misapplications for Cost and Schedule Estimates" by S.K. Peterson, SPE, J Murtha & Assocs., et al.
SPE 102505 "The Selection, Application, and Misapplication of Reservoir Analogs for the Estimation of Petroleum Reserves" by J.E. Hodgin, SPE, Ryder Scott Co., et al.
SPE 100607 "U.K. North Sea and Alaska North Slope: A Comparative Analysis of Petroleum Provinces" by J.A. Walker, SPE, ConocoPhillips Alaska Inc., et al.
Dynamic Economic Indicator To Evaluate SAGD Performance
Authors: Denney Dennis 
Published: February 2015

This article, written by Technology Editor Dennis Denney, contains highlights of paper SPE 100525, "A Dynamic Economic Indicator To Evaluate SAGD Performance," by H. Shin, SPE, Shell Canada Ltd., and M. Polikar, SPE, U. of Alberta, prepared for the 2006 SPE Western Regional Meeting, Anchorage, 8-10 May.
An economic indicator called simple thermal-efficiency parameter (STEP) was developed to evaluate the performance of a steam-assisted gravity-drainage (SAGD) project. A dynamic model called STEP-D was developed for use as an economic indicator under the changing conditions of the economic limit of the instantaneous steam/oil ratio (SOR) and the price of heavy oil.

Introduction
The economics of a SAGD project is related to several production-performance parameters. The most significant are SOR, cumulative steam/oil ratio (CSOR), ultimate recovery factor (RF), and project life. STEP is based on CSOR, calendar day oil rate (CDOR), and RF for the time corresponding to an SOR of 4.
STEP's usefulness as an economic indicator was validated qualitatively as well as quantitatively. STEP was introduced to optimize SAGD operating conditions in Athabasca-, Cold Lake-, and Peace River-type reservoirs in the Alberta oil sands. This economic indicator was modified to evaluate the performance of a SAGD project under selected reservoir parameters and optimal operating conditions. STEP was found to be a useful qualitative as well as quantitative economic indicator in evaluating SAGD performance.
In reality, the economics of a thermal project depends strongly on the economic limit of SOR and heavy-oil price, poil. These variable parameters are used in the economic evaluation of field projects. In this research, a dynamic model, STEP-D, was developed for use as an economic indicator under these changing conditions. For the STEP-D calculation, the economic limit of SOR was varied from 3 to 6 and the poil from U.S. $15 to $30/bbl for three oil-sands reservoirs in Alberta.

Development of a Dynamic Economic Indicator
Initially, STEP was used to evaluate the performance of a SAGD project under optimal conditions. It was pro-posed as a simple economic indicator, to be used instead of net present value (NPV), while determining the best SAGD operating conditions. The simulation results showed that NPV had a linear relationship with RF and CDOR, but a decreasing exponential relationship with CSOR.
Building Bridges: My Journey Begins…(December 2007)
Authors: Cobb Bill 
Published: February 2015

As I begin my year as 2008 SPE President, I express my humble thanks for the opportunity to serve you and lead our Board of Directors. Also, I want to thank my friend and fellow Stanford alumnus, 2007 SPE President Jaleel Al-Khalifa, for the leadership, guidance, and direction he has given to the SPE for the past 12 months. Jaleel, you represented SPE very well; you reached the peak of Mt. Everest, climbing the trail you described in your September 2006 JPT interview. With your help, SPE's strong team of volunteers, our international Board of Directors, and our excellent staff, we will move forward to climb new heights.
As I indicated in my interview with John Donnelly in last month's JPT, one of my primary goals for the year is to give direction to the SPE Long Range Plan. The Long Range Plan guides the Board of Directors in developing SPE's programs and strategies. The plan is updated on a regular basis but its adoption by the Board of Directors occurs only after it is discussed and modified by a committee of diligent groups of SPE members.
I also said that I wanted to be an effective ambassador for SPE, which is reflected in the title I have chosen for my JPT column. As President, I want to build bridges and more effectively connect SPE to its members, industry, and the general public. Also, I want to stimulate a higher level of volunteerism among SPE members.
Much is going on in SPE's operations. The SPE has hired a new Managing Director for Middle East, India, and North Africa activities, Waleed Refaay. He is based in our Dubai office. We welcome Waleed to the SPE management team and look forward to working with him…. In October, SPE opened a new regional office in Moscow, which will fall under the management of Lawrence Slade, Managing Director Europe, Russia, and West Africa, in SPE's London office. The Moscow office will allow SPE to more effectively serve its members in Eastern Europe, Russia, and other countries in the region.
During my professional career, I have been able to travel to more than 40 countries. As a result, I can count personal friends on six continents (I may make it to Antarctica, but am not placing any bets on that). I look forward to reconnecting with many of them in the coming months and to making many new friends. With more than 70,000 SPE members out there, I have many potential connections to make.
Technology Update: Modeling H2S-Scavenger Efficiency Cuts Costs
Authors: JPT staff _ 
Published: February 2015

The problems associated with production of H2S are well defined within the oil industry, with the major issues related to safety, corrosion integrity, and production deferment. Shell now has at its disposal a software model to predict H2S-scavenger efficiency in an effort to reduce costs and optimize chemical treatment regimes. The company also has available a test flow loop for evaluating scavenger performance under a wide range of simulated field conditions.
Phase 2 of a joint-industry project (JIP) with the Chicago-based Gas Technology Institute (GTI), which Shell recently completed, provided the basis for the company's advances. The JIP work complements some extensive optimization work on a Shell field, where practical considerations to the chemical application had a proven significant effect on chemical use and subsequent reduction. This practical test work offshore clearly defined the many and varied considerations to the application technique required to achieve success. The results from one example are shown in Table 1.
Similar reductions in chemical use were noted for two other platforms in the field during this extensive off-shore optimization study. The main factor contributing to this reduction was the relocation of the injection point. Further cost reductions of approximately 15% are feasible with a high probability of success through implementation of the following:Improved monitoring and measurement of H2S in the export gas, which would allow optimization and control of the scavenger-dosage regime by up to 15%Improved delivery of chemical by priming the pulsation dampener and using an appropriately sized atomization nozzleMaximized contact between the injected chemical scavenger and the sour gas from the low-pressure compressor, through use of an additional scavenger-injection point at the high-pressure separator dischargeUse of a pump suitable for the volumetric injection ratesFitting the flowing system with a retrievable insertion probe for ease of maintenance and reduced downtime
Additional savings of more than 10% in chemical costs are achievable through automating the injection, with a payout period of less than 1 year projected for this.
Implementing the above recommendations will yield a positive environmental impact by achieving up to a 30% reduction in the concentration of unspent scavenger in the water that is discharged overboard.
Overview: Production/Facilities (December 2007)
Authors: Richards Simon 
Published: February 2015

It does not seem a year since the last facilities feature. The theme this year is about heavy-oil upgrading to light oil; although a paper about wax seems to have slipped in too. Heavy oil is an enormous energy resource that still is largely untapped. The challenge is to get the stuff out of the ground as fast as the lighter oil that we currently produce. Unfortunately, the density and viscosity usually make this target very difficult in the end.
However, heavy oil is not all bad; on a volume basis, it contains more energy than lighter oil.
Currently, the industry is attempting to justify heavy-oil developments on two fronts: by developing new means for extracting it faster and by increasing its value. This is where the real prize is in heavy oil—its value. Its value currently is largely unrecognized; it sells often much cheaper than lighter oil even though it contains more energy on a volume basis. The industry is currently developing ways to upgrade it to light oil to add value; but there are other ways of adding value, and to find these, one must re-examine the business model of the upstream industry that has not changed in 150 years. We continue to produce and sell crude oil to refiners and let the oil traders set the price. We can, and should, be more proactive in finding ways to exploit the irreplaceable value of oil.
Production/Facilities additional reading available at the SPE eLibrary: www.spe.org
SPE 107958 "Modeling Rapid Multiphase Flow in Wells and Pipelines Under Nonequilibrium and Nonisothermal Conditions" by Guillermo Michel, University of Oklahoma, et al.
SPE 108752 "A Study of Normal Slug Flow in an Offshore Production Facility With a Large-Diameter Flowline" by E. Guzmán Vázquez, National Autonomous University of Mexico, et al.
SPE 104133 "Leak Detection for Gas and Liquid Pipelines by Transient Modeling" by Shouxi Wang, Gas Liquids Engineering, et al.