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Tuesday, January 10, 2012

Skrugard Seismic Section


Seismic and 3D CSEM profile across the the Bjørnøyrenna Basin and the Skrugard discovery well 7219/8-1 S. Notice the excellent match between the structural information provided by the seismic section and the resistivity profile with a conductive Tertiary resting on top of a resistive Cretaceous-Jurassic fault block with the Skrugard discovery well 7219/8-1 S. As the downthrown block is conductive, a better understanding of such resistivity variations is an additional key for breaking the basin code. Source: Aker Geo


Perspective view of the Base Cretaceous in the western Barents Sea. In yellow, the highlighted area shown on the expanded figure. Source: Aker Geo


Bjørnøyrenna Basin with the Skrugard discovery. Seismic structural map, Base Cretaceous (bottom) with the magnetic tilt derivative map, reduced to the pole, High Pass filter 15 km, gravity free air anomaly map, HP filter 15 km (middle) and (top) 3D CSEM (Controlled-Source Electromagnetics with a towed dipole transmitter and arrays of sea bottom dipole receivers) anomaly map showing a strong salt induced resistive anomaly close to sea bottom (cross section on page 56). The structural trend in the CSEM map corresponds to an offset in basin overall NNE-SSW trend. Source: Aker Geo



Statoil Havis Skrugard Area, Barents Sea



Statoil estimates the volumes in Havis to be between 200 and 300 million barrels of recoverable oil equivalents (o.e.). The provisional, updated total volume estimate for the Skrugard and Havis discoveries in PL532 is in the region of 400-600 million barrels of recoverable oil equivalents.

Havis lies approximately 7 kilometres southwest of the Skrugard discovery, made in April of last year. Havis lies within the same production licence, but forms an independent structure. There is no communication between the two discoveries.

Moreover, Havis and Skrugard prove that persistence and long-term thinking bear fruits. Statoil has been exploring in the Barents Sea for more than 30 years and the company has been involved in 88 of a total 92 exploration wells drilled in the area. This has resulted in continuous competence building and a deep understanding of the hydrocarbon systems in the Barents Sea.

Tuesday, January 3, 2012

US Gas Rigs Continue to Tank

Over the past eight reports going back to late October, natural gas rigs have dropped 132 while oil rigs have jumped 123, further entrenching oil's market share in the drilling space. Oil rigs now account for almost 60% of all U.S. drilling, up from 53.3% just eight weeks ago. Comparatively, natural gas drilling makes up less than 40% of U.S. activity, down from 46.2% eight weeks ago.
According to the survey, 802 rigs were drilling for gas, down 16 on the week, down 129 on the year and at its lowest point in almost two years. The report shows 1,201 rigs were drilling for oil, up five on the week, up 430 on the year and above 1,200 for the first time in Baker Hughes records. Miscellaneous rigs, typically associated with geothermal drilling, were unchanged on the week at five.

Thursday, December 29, 2011

Wednesday, December 28, 2011

Noble: Cyprus Gas Discovery

Noble success continues

Noble Energy announced Wednesday a natural gas discovery at the Cyprus Block 12 prospect, offshore the Republic of Cyprus.
The Cyprus A-1 well encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals.
The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range(1) of 5 to 8 trillion cubic feet (Tcf), with a gross mean of 7 Tcf.

Friday, December 23, 2011

Pavillion Field: IPAA response



December 9, 2011
Dear IPAA Members and Colleagues:
Yesterday, the Environmental Protection Agency released a draft report on natural gas drilling in the town of Pavillion, Wyoming.  According to the EPA's press release, "The draft report indicates that ground water in the aquifer contains compounds likely associated with gas production practices, including hydraulic fracturing."  The report is still in draft form and needs to be peer-reviewed. The onus is now on EPA to legitimize this report after more than six decades of safely hydraulic fracturing over a million wells.  As we have seen time and again, the current EPA has made our industry a primary target. 
Most news headlines already have it wrong, instead reporting some conclusive link that hydraulic fracturing contaminates drinking water.  Today's New York Times' headline pounces:  "E.P.A. Links Tainted Water in Wyoming to Hydraulic Fracturing for Natural Gas."
IPAA filed this week a Freedom of Information Act (FOIA) request to EPA on this draft report, particularly whether it had been "leaked" prior to its public release yesterday.
Energy in Depth, the hydraulic fracturing and environmental issues coalition managed by the Independent Petroleum Association of America, released the following Issue Alert.  I thought you might be interested, in case you have questions arise in your communities. 
Please feel free to contact us if you comments or questions.
Sincerely,

Barry Russell
President and CEO

Six Questions for EPA on Pavillion
Draft report from EPA in Denver produces lots more questions than answers; EID poses a few of its own
Call it a sign of the “Times,” let’s say, that less than 24 hours removed from the release of EPA Region 8’s report on groundwater sampling near Pavillion, Wyo., nearly a thousand different news stories have been generated -- in 12 different countries, and best we can tell, four different languages. But set aside the breathless headlines for a moment and the triumphant quotes from a small segment of folks committed to ending the responsible development of natural gas, and one’s left with a pretty straightforward question: Is EPA right? And if so, what exactly does that mean moving forward?
Of course, before you can answer the second question, it’d be helpful if you had a good answer for the first. And the truth is, as we sit here today, less than 20 hours A.P. (After Pavillion), we simply don’t. What we do know, however, even at these early stages, is that several of the assertions put forth in EPA’s report yesterday don’t quite square with the facts as they actually exist on the ground out there. Because of that, a number of folks are starting to ask some pretty basic questions about what the agency found and how it went about finding it. Below, a few of the most obvious:
1) Why the huge difference between what EPA found in its monitoring wells and what was detected in private wells from which people actually get their water?
· Contrary to what was reported yesterday, the compounds of greatest concern detected by EPA in Pavillion weren’t found in water wells that actually supply residents their water – they were detected by two “monitoring wells” drilled by EPA outside of town.
 · After several rounds of EPA testing of domestic drinking water wells in town, only one organic compound (bis (2-ethylhexyl) phthalate) was found to exceed state or federal drinking water standards – an additive in plastics and one of the most commonly detected organic compounds in water. According to EPA: “Detections in drinking water wells are generally below established health and safety standards.”
 · Bruce Hinchey, president of Petroleum Association of Wyoming: “Let me be clear, the EPA’s findings indicate that there is no connection between oil and natural gas operations and impacts to domestic water wells.” (PAW press release, Dec. 8, 2011)
 · In contrast, EPA found “a wide variety of organic chemicals” in its two monitoring wells, with greater concentrations found in the deeper of the two. The only problem? EPA drilled its monitoring wells into a hydrocarbon-bearing formation. Think it’s possible that could explain the presence of hydrocarbons?
 · According to governor of Wyoming: “The study released today from EPA was based on data from two test wells drilled in 2010 and tested once that year and once in April, 2011. Those test wells are deeper than drinking wells. The data from the test wells was not available to the rest of the working group until a month ago.” (Gov. Mead press release, issued Dec. 8, 2011)
 2) After reviewing the data collected by Region 8, why did EPA administrator Lisa Jackson tell a reporter that, specific to Pavillion, “we have absolutely no indication now that drinking water is at risk”? (video available here)
 · Of note, Administrator Jackson offered those comments to a reporter from energyNOW! a full week after Region 8 publicly released its final batch of Pavillion data. In that interview, Jackson indicates that she personally analyzed the findings of the report, and was personally involved in conversations and consultations with staff, local officials, environmental groups, the state and the operator.
 · After reviewing all that information, and conducting all those interviews, if the administrator believed that test results from EPA’s monitoring wells posed a danger to the community, why would she say the opposite of that on television?
 · And if she believed that the state of Wyoming had failed to do its job, why would she – in that same interview – tell energyNOW! that “you can’t start to talk about a federal role [in regulating fracturing] without acknowledging the very strong state role.” (2:46) A week later, why did she choose to double-down on those comments in an interview with Rachel Maddow, telling the cable host that “states are stepping up and doing a good job”? (9:01, aired Nov. 21, 2011)
 3) Did all those chemicals that EPA used to drill its monitoring wells affect the results?
 · Diethanolamine? Anionic polyacrylamide? Trydymite? Bentonite? Contrary to conventional wisdom, chemicals are needed to drill wells, not just fracture them – even when the purpose of those wells has nothing to do with oil or natural gas development.
 · In this case, however, EPA’s decision to use “dense soda ash” as part of the process for drilling its monitoring wells could have proved a bad one.
 · One of the main justifications EPA uses to implicate hydraulic fracturing as a source of potential contamination is the high pH readings it says it found in its monitoring wells. But dense soda ash has a recorded pH (11.5) very similar to the level found in the deep wells, creating the possibility that the high pH recorded by EPA could have been caused by the very chemicals it used to drill its own wells.
 · According to Tom Doll, supervisor of the Wyoming Oil and Gas Conservation Commission: “More sampling is needed to rule out surface contamination or the process of building these test wells as the source of the concerning results.” (as quoted in governor’s press release, Dec. 8, 2011)
 4) Why is the author so confident that fracturing is to blame when most of his actual report focuses on potential issues with casing, cement and legacy pits?
 · The report singles-out old legacy pits (which the operator had already voluntarily placed in a state remediation program prior to EPA's investigation) as the most obvious source of potential contamination. These decades-old pits, which are obviously no longer used, have nothing to do with hydraulic fracturing.
 · From the report (page xi): "Detection of high concentrations of benzene, xylenes, gasoline range organics, diesel range organics, and total purgeable hydrocarbons in ground water samples from shallow monitoring wells near pits indicates that pits are a source of shallow ground water contamination in the area of investigation. Pits were used for disposal of drilling cuttings, flowback, and produced water. There are at least 33 pits in the area of investigation."
 · From the report’s concluding paragraph: “[T]his investigation supports recommendations made by the U.S. Department of Energy Panel on … greater emphasis on well construction and integrity requirements and testing. As stated by the panel, implementation of these recommendations would decrease the likelihood of impact to ground water and increase public confidence in the technology.” (p. 39)
 5) 2-BE or not 2-BE? That is the question.
 · EPA indicates that it found tris (2-butoxyethyl) phosphate in a few domestic water wells. What the agency doesn’t mention is that this chemical is a common fire retardant found in plastics and plastic components used in drinking water wells. It’s not 2-BE, which, although also a common material, is sometimes associated with the completions process.
 · According to EPA, in one of the eight samples collected, a small amount of 2-BE was detected. Interestingly, two other EPA labs that measured for the same exact compound reported not being able to detect it in the duplicate samples they were given.
 · According to Wyo. governor Mead: “Members of the [Pavillion] working group also have questions about the compound 2-BE, which was found in 1 sample … while other labs tested the exact same water sample and did not find it.” (Mead press release, Dec. 8, 2011)
 6) Is EPA getting enough potassium?
 · Several times in its report, EPA notes that potassium and chloride levels were found to be elevated in its monitoring wells. But just because you have potassium and chloride doesn’t mean you’ve got potassium chloride, a different chemical entirely and one that’s sometimes associated with fracturing solutions. Nowhere in its report does EPA suggest that potassium chloride was detected.
 · According to several USGS studies of groundwater quality in the area, variable -- and in some cases, high -- concentrations of potassium and chloride have been detected in Pavillion-area groundwater for more than 20 years. (USGS 1991, 1992)
 · Interestingly, the potassium levels detected in EPA’s first monitoring well declined by more than 50 percent from October 2010 to April 2011, while the potassium level in EPA’s second monitoring well increased during that same period. Only natural variations in groundwater flow and/or composition could have accounted for this disparity.