Table of Contents

Vol. 7, No. 1
1st Quarter 2001

Technologies That Most Benefit Independents

Each year, The American Oil and Gas Reporter surveys independents, with one question being: What technologies have the most beneficial impact on their operations? Considering all responses and consistent with responses for the last couple years, for 2001, independents said that "fracturing/stimulation" is most important, followed by seismic/geophysical, logging/formation evaluation, and enhanced recovery.

Percentages shown represent the proportion of question respondents who indicate
the technology will have a beneficial impact on their operations in 2001. Respondents
were free to mark more than one technology, so the percentages will total more than 100.

Order did vary slightly with size of the respondent. Small and medium operators switched the order, placing seismic/geophysical first and fracturing/ stimulation second. Smaller operators picked enhanced recovery third, followed by logging/formation evaluation and then horizontal/directional drilling. Medium operators ranked horizontal/ directional drilling ahead of logging/formation evaluation.

These survey results are consistent with those from a 1998 survey conducted by PTTC (Technological Priorities of Independent Oil and Gas Operators, August 1999, downloadable from PTTC's website http://www.pttc.org). PTTC's technology transfer efforts are on target for meeting these identified needs. During 2000 several PTTC regions developed logging-related workshops, while others directly addressed well stimulation technologies during workshops. The state-of-the-art summary in this article directly addresses fracturing/stimulation advances. As one final example, several PTTC regions, working with Maurer Technology, Inc., are hosting workshops on optimized horizontal well technology.

(Information and graphic courtesy of The American Oil and Gas Reporter, Jan 2001 issue)

Compressed Sodium Bentonite for Plugging Wells

Chevron Environmental Management Company (Chevron) has field tested and is commercializing, subject to approval by appropriate regulatory bodies, a well plugging procedure using compressed sodium bentonite (trade name Zonite) in lieu of conventional cement. The patented procedure relies on the bentonite, once placed and exposed to water, hydrating and expanding to form a sealing plug. Unlike conventional cements, the bentonite can continue to hydrate, forming a "living plug" which adapts to its environment (i.e., if something shifts or moves, the plug adapts and retains the seal).

Chevron developed the procedure in its California operations, using it in over 100 wells. Cost savings of 30% or more were realized, so Chevron decided to commercialize the technology for broader application. In October 2000 Chevron formed a wholly owned subsidiary, Benterra Corporation, to handle the commercialization and regulatory change processes. WZI, Inc., a Bakersfield-based consulting company, has been involved, providing independent testing and analysis.

To date, the deepest wells where the procedure has been applied are 4,000 ft. Procedures are rapidly evolving, and the field database is expanding. Benterra is currently working with various other states, introducing the technology through pilot programs.

For more information, contact: Barry Salsbury, Chevron Environmental Management Company, 504-592-6597, sbrs@chevron.com or Mary Jane Wilson, WZI, Inc., 661-326-1112, mjwilson@wziinc.com.

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NAPEŽ 2001 Expo Tops 8,000

Participation in the NAPEŽ 2001 Expo on January 31-February 1 hit a record breaking 8,000 plus attendees. Created by the American Association of Professional Landmen (AAPL) and presented by AAPL in cooperation with the Independent Petroleum Association of America (IPAA), NAPEŽ continues to grow every year. For 2001, the expo show floor was expanded to accommodate additional booth spaces, more walking room, lounge areas and special "Deal Rooms" for potential partners to discuss trades confidentially. This year, the producing properties and international sectors made a greater presence, including an international forum held the day prior to the show opening.

NAPEŽ provides a central marketplace for oil and gas companies to introduce their oil and gas prospects and producing properties via 800 exhibit booths to a cross section of industry professionals including landmen, geologists, engineers, financiers, CEOs, EVPs and CFOs. Also included in the array of exhibits are financial and investment institutions representing potential sources of capital for appropriate companies. Selected associations and organizations also exhibit. Beyond the exhibits, networking opportunities abound.

NAPEŽ sponsors and endorsers include AAPL; IPAA; Enron Energy Capital Resources; IndigoPool.com; ING Barings; Petroleum Place, Inc.; Texas Independent Producers & Royalty Owners Association; American Association of Petroleum Geologists; Petroleum Technology Transfer Council; Canadian Association of Petroleum Landmen; Association of Desk & Derrick Clubs; National Association of Division Order Analysts; National Association of Lease & Title Analysts; International Oil Scouts Association; and the Society of Independent Professional Earth Scientists. Organizers welcomed the Association of International Petroleum Negotiators as a new endorser of the event.

More than 100 companies have already reserved exhibit space for NAPEŽ 2002 to be held January 30-31, 2002, at the George R. Brown Convention Center in Houston. For more information about NAPEŽ, call AAPL headquarters at 817-847-7700.