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2004
F&D Costs Show Marked Increase
A recent Banc of America Securities study
revealed that finding and development (F&D) costs for both
majors and U.S. independents increased markedly. For the
majors 2004 fully loaded F&D costs were $9.55/boe, up 36% from
2003. Equivalent F&D costs for independents, which were nearly
the same as majors at $9.65/boe, rose 21%. Factors responsible
for these increases include a sharp escalation in acquisition
and service costs, coupled with fewer added reserves and net
negative reserve revisions.
For the first time ever, the major's reserves
added per well in the U.S. was less than the independents. The
integrated majors replaced only 89% of production from all
sources, including 81% via the drill bit. The independents
replaced 218% from all sources, including 145% with the drill
bit. Costs for proved property acquisitions, although
increasing 28% from 2003 to $8.25/boe in 2004, still remained
lower than for finding reserves with the drill bit.
Excerpted from "BAS: Industry's 2004
Finding, Development Costs Soar," Oil and Gas Journal, May 16,
2005, p. 31-32.
Avoiding
Reserve Writedowns—CDs Available
With the support of several sponsors and
participation of recognized industry experts, the Houston
Geological Society sponsored four one-day short courses on
different aspects of "avoiding reserves write-downs" and is
now making those courses available on CD. The four aspects
covered are:
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Part I: Reserve Definitions
and Reporting Requirements, including coverage of issues the
SEC routinely questions, SEC "Red Flags"
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Part II: Recommended
Geological Practices, including coverage of common errors
and recommended geologic methods and techniques
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Part III: Recommended
Engineering Practices, including coverage of reservoir
evaluation techniques, common errors and recommended
practices
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Part IV: Recommended
Petrophysical Methods, including coverage of wireline
interpretation and use of core data, 10 causes/ sources of
Low Resistivity/ Low Contrast response and how to adjust
petrophysical evaluation to compensate, real world examples
Sold only as a four-CD set ($120 - Part IV CD not available
until after course presentation on Sep. 21). For more
information visit Houston Geological Society's website
www.hgs.org/en/art/?458.
Hart's
2005 Meritorious Engineering Awards
In March Hart's announced the 2005 Meritorious Awards for
Engineering Innovation. The awards recognize new products and
technologies that offer innovation in concept, design and
application. 2005 award winners, selected by an industry panel
of judges, are:
- Exploration:
Halliburton's Well Seismic Fusion (individual) and
Schlumberger's StethoScope (systems)
- Subsurface
Characterization: Schlumberger's PeriScope 15
(individual) and Halliburton's FasTest (systems)
- Wellbore
Construction: Superior Manufacturing & Hydraulics
and Global/Santa Fe Corp.'s UIBOP Valve Quick Change System
(individual) and Halliburton's BOREMAX Drilling Fluid
(system)
- Completions:
Schlumberger's One-Trip Natural Gas Lift Solution
(individual) and Baker Oil Tools Mono-Trip Cementhru
Completion (systems)
- Production:
Star Oil Tools' Modular Wellhead Gas Compressor (individual)
and Weatherford's Red-Eye Watercut Meter (system)
- Remediation:
Western Well Tools' Intervention Tractor (individual), Baker
Oil Tools' FASTFrac Packer and Bridge Plug (individual), and
Halliburton's DeepReach Coiled Tubing Service (systems)
- Facilities:
Tronic's Wet Mate (individual)
Excerpted from "2005 Meritorious Awards
for Engineering Innovation," Harts E&P, Mar 2005 viewable
online at
www.eandpnet.
com/pdf/MEAAwards2005.pdf. |
2005
Directory of State Regulatory Agencies
Time is money and quickly finding the right
place/person in state regulatory agencies is important for
busy independents. The American Oil and Gas Reporter's 22nd
edition of "The American Directory of State Regulatory
Agencies" strives to provide producers with the names and
phone numbers of officials in major producing states who can
provide answers and direct operators to the knowledge they
seek in basic regulatory categories.
If you haven't kept the March issue, or don't get the
magazine, contact them at 316-788-5796. Excerpted from "The
American Directory of State Regulatory Agencies," American Oil
and Gas Reporter, March 2005, pp. 143-153.
SPE/IADC
Panel on Mature Well Technologies
In a February drilling conference sponsored by
SPE and the International Association of Drilling Contractors,
one plenary session addressed "Mature Well Technologies." One
panelist noted that "brownfields remain our greatest potential
source of hydrocarbons." Responses to selected questions
gathered from the audience of about 500 people using wireless
voting pads are revealing.
What is the most pressing issue for future development of
mature fields?
Technology 44%
Economics 33%
Trained personnel 22%
Can advanced technology be dumbed down? 77% said "Yes"
What type of company is best equipped to provide solutions
for mature fields?
Integrated service companies 47%
Independent operators 19%
Niche technical solutions 11%
Major integrated oil companies 9%
Survey responses reveal consensus that service companies
already have many of the tools, and that they can be adapted
for mature fields. More standardization and increased
regulatory streamlining will help decrease costs. Taking a
total life cycle approach (looking ahead to the abandonment
stage) when doing additional development in brownfields will
also reap benefits.
Excerpted from "Mature Well Technologies Must Become
Cost-Effective, Standardized," Oil and Gas Journal, Apr. 11,
2005, p. 39-42. |
Tech
Transfer Track