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New Technologies Bring New Partnerships
Independent producers increasingly are partnering with the petroleum research and development community—benefiting the companies involved and the future of US oil and natural gas production. However, although technologies bring new efficiency and boost profitability, the industry’s growth also has added complexity to once simple working relationships.
Producers, service company executives, and other technology experts met Nov. 17 in Houston to discuss ways to improve E&P methods. The discussions highlighted the Emerging Technologies Energy Conference (ETEC), a one-day program jointly developed by PTTC, the Independent Petroleum Association of America, and Cambridge Energy Research Associates. Pulitzer Prize-winning author Dr. Dan Yergin, CERA president, and leading service company executives discussed emerging E&P technologies with other ETEC panelists.
"You didn’t tell us it was going to be like this two years ago," said Baker Hughes Executive Vice President Andrew Szescila in response to a producer comment on the need for qualified service company personnel in the field. BJ Services has quadrupled training staff, and Schlumberger Dowell routinely follows up field projects with quality control meetings with producers.
Western Geophysical is using its offshore Gulf of Mexico experience to gather nonexclusive onshore data that can be made available to producers, according to Denby Auble, senior vice president of technology. BJ Services sees future growth in underbalanced drilling technologies with emphasis on preventing wellbore damage instead of well remediation.
Further, service companies have adjusted to producer demand for partnerships and integrated field solutions to "fit the purpose" of technology needs, said Chad Deaton, president of Schlumberger Dowell. Operators also are using coiled tubing technology and other drilling advancements to reduce finding costs. They also are changing their well completion methods. Jed DiPaolo, vice president, Halliburton Energy Services, said finding costs dropped from $10.31 per foot in the mid-1980s to $4.77 per foot in the mid-1990s.
During a separate ETEC panel discussion, former Silicon Graphics CEO Ed McCracken noted that today’s information flow has become lateral, with ideas coming from all management levels, and that employees must be "knowledge athletes." Donna Shirley of the Jet Propulsion Lab said that achieving success depends upon building collaborative relationships with the research and development community.
Landmark Graphics Executive Vice President John Gibson said computer technology is allowing independents to compete with the major companies. Other ETEC presentations included three field case studies (see "Field Report" opposite). The conference was sponsored by Landmark Graphics.
ETEC provided a unique technology transfer forum for producers and technology providers, according to PTTC Chairman Robert L. Nance, president, Nance Petroleum, Billings, Mont. The management-level panel sessions resulted in "a sharing of practical approaches that can help domestic producers’ profitability."
Leo Schrider, formerly chairman of PTTC’s Appalachia region, began his first term as the vice chairman of PTTC in November. Schrider, a dedicated PTTC advocate, has worked as a senior vice president for Belden & Blake, Inc., North Canton, Ohio, since 1986. He brings more than 35 years of experience in oil and gas production, including serving as Deputy Director of DOE’s Morgantown natural gas program.
Further, independent producer Nick Powell joined the PTTC board as the new producer advisory group chairman for the North Midcontinent region, succeeding Jim Devlin, Viking Resources, Inc., Wichita, Kan. Powell is president of Colt Energy, Inc., Overland Park, Kan., which he has owned since 1980.
Jay Haskell, who previously served as alternate director, joined the board in November as the service company representative, replacing Bill Preeg, Schlum-berger, Austin, Texas. Haskell, one of two board members residing outside of the United States., works in Caracas, Venezuela, as manager for Schlumberger's Latin America production enhancement initiative. He has worked in the industry since 1978 and is involved in several trade organizations.
Lester Moore, PTTC board member and Midwest region producer advisory group chairman, was recently appointed to IOGCC’s Energy Resources, Research and Technology committee. Moore, MEPCO, Inc., Evansville, Ind., has worked extensively with the IPAA and is a member of several state industry groups.
Cooperation between oil and gas industry organizations is a necessity for future success. On Dec. 8, PTTC Chairman Bob Nance spoke to the Interstate Oil and Gas Compact Commission’s (IOGCC) Energy Resources, Research and Technology Committee about the importance of working together to enhance technology transfer for the benefit of producers.
During the presentation, which took place at IOGCC’s annual meeting in Santa Fe, Nance, president, Nance Petroleum Corp., Billings, Mont., summarized PTTC’s mission, organizational make-up, and grass-roots involvement on the state-level. He lauded the organization’s past involvement with PTTC and suggested ideas for working together in the future. IOGCC Executive Director Christine Hansen serves on the PTTC board of directors, representing the states.
Nance believes the committee is likely to recommend further involvement between the two groups. Several PTTC board and producer advisory group members serve on the IOGCC and its committee.
A Sept. 27 policy statement from the Energy Council requested that the president and Congress continue to fund DOE oil and natural gas E&P research, development, technology transfer and environmental programs. The council, a national association representing oil and gas producing state legislators, also suggested increasing funding whenever possible to assure efficient production of US resources in an environmentally sound manner.
Daniel Lawrence is PTTC’s new executive assistant and webmaster. Lawrence replaces Peter Keys, information manager, who has accepted a position with the US State Department. In addition, Allison Miller has added responsibilities, moving into a new position as communications and marketing associate.