Table of Contents

Vol. 6, No. 2
2nd Quarter 2000

PTTC recognizes that products and services featured in “Tech Transfer Track” may not be unique and welcomes information about other upstream technologies. PTTC does not endorse or recommend any of the products or services mentioned in this publication, even though reasonable steps are taken to ensure the reliability of information sources.

Service Firms Redefine R&D Roles

Major oil companies have reduced their R&D spending, shifting towards collaborative projects. The top oil and gas service companies are redefining their roles. Just a few years ago, emphasis was on equipment design and performance. Rather than being job-oriented, current R&D projects are results-oriented. Service companies maintained this focus even during the most recent downturn.

Today’s R&D is more centered on planning and allocation. Funding goes to projects that will generate value for producers. During the recent downturn, it was difficult for service companies to be adequately compensated for the value they were adding, but compensation must ultimately come for service companies to continue this function.

Much of the current R&D work is being performed collaboratively with major oil companies and large independents. Examples include:

• Schlumberger recently created the Advanced Completion Center to combine engineering and development teams on research projects.
• Baker Oil Tools has worked on formation evaluation with Shell, Elf Aquitane, and Texaco, and on downhole wellbore splitter technology with Marathon.
• Halliburton and Shell have created a joint venture to take advantage of Halliburton’s Smartwell technology, which enables surface monitoring of a well’s temperature, pressure, and flow—and allows operators to change the settings of drill string without pulling it out of the ground.

Extracted from Oil Daily, April 25, 2000.

New Option for Cementing Services

A new Houston-based technology service company, Cementing Solutions, Inc. (CSI), will provide the petroleum industry with evaluation and consulting services to address cementing problems. During recent years, at least 5 major oil companies lost their leading cementing experts through early retirement and service companies have also been forced to scale back, creating an industry-wide need for cementing research and new technology development.

CSI will provide specialized training, applied research, API testing, service company QA/QC, as well as new product development and evaluation for some clients.

For more information, contact Fred Sabins (President) or Timothy Edwards (Lab Manager) at 713-957-4210, or email f.sabins@cementingsolutions.com.

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Wyoming Website Helps Independents Track Oil and Gas Data

High-interest content on the website of the Wyoming Oil and Gas Conservation Commission (WOGCC) is attracting industry, with over 1,000 hits a day. The site (at http://wogcc.state.wy.us) offers well coordinates, production data, permit approvals, and tax information. Operators can electronically track tops, casing points, or perforation intervals—thus learning from each other’s experiences. WOGCC provides the ability to download production data, coordinates, and other information into a variety of software programs.

WOGCC also has a link to a mapping package that can place oil or gas well spots on topographic maps. Through the University of Wyoming’s internet map server, users can build custom-designed base maps without installing a geographic information system package.

For more information contact WOGCC, phone 307-234-7147 or visit: http://wogcc.state.wy.us.

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IPAA Forecast Shows That Technology Helps Stem Rate of Decline in Crude Oil Output

In April, the Supply and Demand Committee of the Independent Petroleum Association of America (IPAA) issued its annual long-run forecast. The committee expects the downward trend in US crude oil production to continue, as it has for the past 15 years. However, the rate of decline is expected to lessen, (as shown in the table) mainly due to technological progress and deep-water discoveries.

To keep pace with declining production levels, the committee anticipates that total oil imports (including products) will account for 58% of domestic petroleum demand in 2005, compared to a 56.6% ratio in 2000. Despite progress in upstream technology and new discoveries, America's oil import dependency ratio is expected to reach 60.5% by the year 2015.

IPAA's "Long-Run Supply & Demand Petroleum Forecast" also encompasses natural gas, other energy sources, and macroeconomics. For information, contact Scott Espenshade, IPAA, phone 202-857-4722, email sae@ipaa.org