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Vol. 7, No. 4
4th Quarter 2001


Tech Transfer Track

 

BORS Lift Units Profitable in Horshoe-Gallup Unit, New Mexico

Regent Energy Corp. assumed operations in the mature (discovered in 1950) Horseshoe-Gallup Unit in New Mexico. Production is from the Cretaceous Gallup sandstone at about 1,300 ft. Through its life, about 38 million bbl of oil had been recovered from HGU, from some 350 wells. But production is very mature, having been waterflooded since the 1960s. When Regent acquired the property in 1999, there were only 13 wells producing 60 bopd and 300 bwpd. Regent's depletion plan, targeted to achieve 12-13% of the 142 million bbl oil-in-place, includes selective infill drilling and reconditioning or reworking existing wells. Since taking over operations, Regent has increased production to 250 to 300 bopd (plus 1,300 bwpd) from about 120 wells. Economics are still tight in the HGU.

Late in 2000, Regent installed BORS lift units on 10 wells waiting to be abandoned. Looking at costs of $100,000 to $120,000 just to plug the wells, and significantly more if they were reworked, the option to test 10 BORS lift units was attractive. All wells were on production within less than a week after installing the BORS units.

The BORS technology is based on a proprietary mathematical formula that calculates a "balance point" in the oil column. The unit operates by lowering a flexible, cylindrical tube down through the well casing to the balance point, oil driven by reservoir energy fills the tube, the tube is lifted to the surface, the oil dumped, and the dipping process repeated. With this approach, water production and lifting costs are reduced dramatically, and production is often increased. For example, conventionally pumped wells in the Unit area average 2 bopd. During a six-week period in late spring 2001, the 10 BORS-lifted wells averaged 3.5 bopd and further optimization has increased the average to more than 5 bopd. The BORS units were producing about 1.5 bo per bw produced, as compared to 10 bw per bo in conventionally produced wells.

Excerpted from article by Ken Wiley, Regent Energy Corp. and Richard Pomrenke, Grasso Production Management, Inc., "New Technology Improves Results," Hart's E&P, October 2001, pp. 79-82.


"Hawkjaw" Drill Pipe Tongs Reduce Drill Time

Hawk Industries, Long Beach, California, has a new, proprietary drill-pipe tong system, called Hawkjaw, that reduces trip time. The new tongs, which torque to 100,000 ft-lb, are compact, requiring rig floor space of 58-in depth and 50-in width, and a smaller 65,000 ft-lb version is also available. Hawkjaw will make up drill pipe in 10 sec. or less, with a break and spin-out time of only 12 sec. In Long Beach, Chaffee Island C-441 property, THUMS noted a saving of one hr per 5,000-ft round trip. In addition to time savings, THUMS observed less damage, overtightening and bending of drill pipe and the system reduces injuries and labor on the floor. Also in California, Helmerich & Payne has used the tongs on its Rig 102 for ExxonMobil on the Hondo platform, offshore California. Well depths there run between 20,000 and 25,000 feet. The tongs were used in various operations, including working with multiple tapered strings. The tongs are versatile in that they can accommodate two different pipe sizes at one time. Profitable application is also noted by Parker Drilling Co. International in Colombia.

Excerpted from "New Drill Pipe Tongs Reduce Trip Time,," World Oil, December 2001, pp. 50-53. View online at http://www.worldoil.com/

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Optimizing Work Processes Saves Money

Information technology (IT) is a business enabler, not the end all solution. Despite having updated desktop technology, a small E&P company's employees were not using it well. Working with an IT consultant focusing on business process, changes yielded dramatic results. For example, with a staff of 92, the daily drilling report was copied 79 times and reentered into four different systems. The solution was relatively simple—posting the drilling report on a computer network bulletin board and eliminating paper copies. Reevaluating the drilling process reduced required drilling time from 52 weeks to 45 weeks, meaning production got online sooner. 

These are just examples. Overall, the IT consultant found that only 5% of desktop capability was being used. As illustrated above, significant improvements resulted from implementing changes identified through the business process analysis. When desktop and staff resources began being used effectively, the company could take on new business and grow without needing more people.

Concerned about IT equipment costs, don't be. The author of the article from which this is excerpted states "by optimizing workflow, virtually any company will see immediate improvement in business processes without installing a single piece of new technology on the desktop."

Excerpted from article by Fred Pratt, DYONYX, Houston, "Using Existing Desktop Technology To Increase Productivity," World Oil, December 2001, pp. 55-56. View online at http://www.worldoil.com/

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$93.8 Billion Worldwide Oilfield Service Market During 2001

Estimates for the oilfield service market are $93.8 billion during 2001, more than a 25% increase from the $74 billion spent in 2000. Offshore activity accounts for more than 26%, or over $26 billion, of those dollars. The equipment manufacturing sector, which includes tubular goods, rig equipment, artificial lift and subsea equipment, is estimated to be $14.9 billion during 2001. Pressure pumping represents another $5.9 billion. Well servicing, which comes in tenth on the list, is estimated at $2.5 billion. Not surprisingly, the top 10 oilfield equipment and service companies represent about 55% of the oilfield equipment, construction and service market. The largest shares belong to Halliburton, Schlumberger and Baker Hughes.

Excerpted from "Dollar Estimates on the Oilfield Service Market," Well Servicing, November/December 2001. Estimates developed by Spears and Associates as well as a Smith Barney industry study.

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