| PTTC HQ News | Producer Interview | Regional Roundup | |
| Field Results Report | Tech Transfer Track |
New Computer Training Center Set for 1999 Launch
A new computer training center providing instruction in oil and gas industry software is now under development at the Colorado School of Mines (CSM) in Golden. The Rocky Mountain Computer Training Center (RMCTC), which is expected to be operational by January 1999, was mostly funded through a grant from the American Association of Petroleum Geologists (AAPG). Additional funding was provided by private donors Erika H. and John P. Lockridge-in cooperation with CSM and PTTC.
The Center will be the first of its kind established at a university offering four-year degrees; AAPG has previously funded similar centers at three Texas community colleges. "The grant from AAPG to one of PTTC's 10 regions for a computer center is an important example of how these two organizations work together to benefit independents," said Brook Phifer, chair of PTTC's Rocky Mountains Producer Advisory Group. In addition to the money supplied by AAPG for computer hardware-now totaling $82,500-PTTC will provide funds for instructors and facilities, and CSM will rewire the labs for the updated facility.
"This grant is a result of our rapidly expanding infrastructure, product development, and strong presence on the web," said Roger Slatt, director of PTTC's Rocky Mountains resource center at CSM. Since its formation in 1995, the resource center has coordinated nearly 40 workshops, many of them emphasizing computer and Internet training. It currently has more than 70 software packages specific to all aspects of petroleum exploration and production.
The RMCTC will offer intensive one- to three-day short courses and weekly courses that can be taken in the evening. The courses will be taught by industry experts who use software in their daily operations, as well as by software company personnel, with the emphasis on how to use the software. Courses will be taught in two facilities: a PC lab housing 20 high-end Intergraph PCs and a UNIX lab with Silicon Graphics workstations. Slatt said that, as the Center evolves, it could expand to incorporate remote training and satellite centers.
"This computer training center is particularly important to independents and small operators who must work more efficiently-and analyze more data-in their daily operations," said Phifer. "With so much software out there, it's difficult for many producers to know what best matches their specific needs. We can help them learn which software tools are available, and how to use them," added Slatt.
For a list of available software, visit the PTTC Rocky Mountains website at www.worldenergy.com/PTTC/index.html. For information on the Rocky Mountain Computer Training Center, contact Sandra Mark, (303) 273-3107, smark.95@alum.mines.edu.
Case study presentations from producers and vendors who worked together to successfully employ specific technologies will be the focus of the November 12 Emerging Technologies Energy Conference (ETEC '98) in New Orleans. The one-day event, now in its second year, is cosponsored by PTTC and the Independent Petroleum Association of America (IPAA).
Five case study presentations-targeted to an executive- and managerial-level audience-will showcase the successful implementation of new technologies and feature technical and economic results. Case studies expected to be presented include:
The results to date are impressive-a 10-fold increase in production, a four-fold increase in reserves, and operating costs, on a per-barrel-oil-produced basis, less than half of prior levels. Ron Klarc, from Windsor, will provide the producer's perspective, along with a senior representative from the technology provider.
Over the next two years, GeoResources drilled four more horizontal wells, all underbalanced, the last two using the best commercially available technology (oil-based mud with on-site generated nitrogen and electromagnetic MWD). Decline curves have confirmed the economic benefit of underbalanced drilling. Presenters include GeoResources' Jeff Vickers and Ian Richardson, from Northstar Drilling Systems, Inc.
Hunt Petroleum Corp., with Louisiana State University's (LSU) simulation support, implemented a dual completion in the strong water drive Wilcox reservoir. The completion separately produced water from below the oil-water contact and oil from the upper part of the pay zone and was an economic success, still flowing 50 BOPD at payout 14 months later. After flowing for more than three years years, other circumstances led to the well being conventionally completed-production declined to historic levels. Presenters include Mark Swisher, from Aviara Energy (a subsidiary of Hunt), and LSU's Andrew Wojtanowicz.
Commitments for the other two case studies are still being finalized. The session will conclude with brief presentations focusing on practical approaches for prioritizing field operations and shared industry experience. Leo Schrider, senior vice president of Belden & Blake Corp., and Mike Gatens, a partner at MGV Energy, Inc., will moderate the session.
Registration for ETEC '98 is $195 for IPAA members if received by October 15; $225 thereafter. Fees are slightly higher for nonmembers. For more information, or to register, contact LuAnne Tyler at IPAA, 1-800-433-2851, ltyler@ipaa.org.
PTTC's Board of Directors approved a new business plan emphasizing PTTC's "technology connections" at its July 20 meeting in Washington. Based on the approved elements in the plan, a cohesive marketing campaign for PTTC's FY99 activities will be implemented this fall.
"Several new ideas have been adopted to further the goals called for in our 1997 strategic plan," said Executive Director Deborah Rowell. The six-month-long process to develop the plan included representation from the PTTC Board, regional directors, and staff, and was facilitated by Gary Lundquist, president of Market Engineering International, Inc.
Reflecting PTTC's expanding role in technology transfer, the mission statement was changed to read: "PTTC strengthens the U.S. independent oil and natural gas industry for the benefit of consumers and the nation by helping producers make timely, informed technology decisions based on effective access to relevant solutions."
To better monitor and develop PTTC's products and services, the Board approved five program lines-exploration, drilling and completion, operations and production, reservoir and development, and environmental. "These groupings, set up to encompass the specific technical needs of customers, will increase our value to industry," noted PTTC Chairman Robert Nance.
PTTC is currently finalizing a code of ethics for adoption by the Board later this year. In addition, regional directors are working with headquarters staff to develop an operations plan to implement new program ideas.
Editors' note: PTTC's 10 regional lead organizations (RLOs) are responsible for transferring technology at a local level. But what, specifically, can they do for independents? For the first of a series of columns on RLOs and their activities, we asked Doug Patchen, director of PTTC's Appalachian region, to provide insight into his operations.
No two RLOs are alike. Each area has different technology concerns, and each has different resources to accommodate the needs of regional producers.
A prime example is the Appalachia RLO, located in Morgantown, W.Va. A geographically diverse region encompassing seven states, Appalachia has access to a diverse staff with backgrounds in geology, engineering, and geophysics. "Because of the diversity of experience that supports PTTC's activities-as well as each person's talents-we have the capability to answer a wide range of operator questions," said Patchen. "Moreover, it greatly increases our contacts, since the staff bring their own personal networks for seeking solutions to problems," he added.
Key to an RLO's operations is its ability to customize the latest information for specific, regional applications. Patchen cited Appalachia's recent success with 3-D seismic imaging as one example. "Three-dimensional seismic imaging isn't used much in our region because of perceptions about its prohibitive cost. However, through several recent workshops, speakers showed that 3-D seismic imaging can be a viable option, and that it may not be that expensive. In fact, for many applications, it actually may be less expensive than 2-D imaging," he noted.
Patchen said that most inquiries come through e-mail or web traffic. However, just because the RLO's visitors are "virtual" doesn't mean they can't take advantage of the on-site resources. "An operator in West Virginia recently e-mailed a request looking for sample descriptions of wells in Eastern Ohio," Patchen said. "He wanted to know how extensive the field was and whether it extended into West Virginia." Patchen used the resource center to find a book that identified 12 similar wells. "We e-mailed him the answers he needed within a few hours," he said.
Also, the broad geographic and technical scopes encourage cooperative efforts with other associations. Patchen said that working relationships with associations in other states allow the development of a wide range of workshop topics. Cooperating associations also serve as additional contacts for operator inquiries. "I'm proud of how we have expanded our contacts beyond West Virginia. We have great working relationships in several states."
And, he added, these contacts have extended the technical knowledge base. The Eastern Section of the American Association of Petroleum Geologists linked to the RLO's website, increasing both groups' profiles. Patchen also expects the number of PTTC workshops to increase, particularly through cosponsoring events with the Federal Energy Technology Center and Department of Energy.
Plus, the Society of Petroleum Engineers has helped develop and cosponsor several recent workshops. Patchen, a degreed geologist, joked: "I've learned more engineering in the last three years than I had in the previous 20."
Patchen is chief geologist of the West Virginia Geological and Economic Survey, director of the Minerals Extraction Division of the National Resource Center for Coal and Energy at West Virginia University (WVU), and adjunct professor of geology at WVU. You can contact the Appalachia RLO at (304) 293-2867 or dpatch@wvunrcce.nrcce.wvu.edu, or look up http://karl.nrcce.wvu.edu.
"New" seems to be a word bandied around the office a lot lately. The front page of this issue alone mentions a new Rocky Mountain Computer Training Center, a new format for the upcoming Emerging Technologies Energy Conference (ETEC '98), and a new Secretary at the Department of Energy. Plus, I'm a (relatively) new member of the PTTC team, having joined the headquarters staff in May.
While these new developments may or may not impact independents, new technologies certainly will. Just look at some recent examples: The Gas Re-search Institute predicts that by 2015, nearly one-third of the gas consumed in the U.S. will be dependent on technologies developed since 1996. And, the headline of a recent editorial in Hart's Petroleum Engineer International says it all: "Abandon Tradition or Abandon Your Wells."
I can't predict what the next breakout tool will be five years from now-just five years ago I had never used the Web. But new tools are being developed every day. PTTC's low-cost workshops allow producers to learn about new technologies that might be useful in the oilpatch. Hopefully, articles in this newsletter also can provide you with resources. And, of course, the November 12 Emerging Technolo-gies Energy Conference will provide a forum to learn what new technologies have worked for others in the industry.
None of these will change the price of oil, but some may help you operate more efficiently. And help you learn about solutions to your technology problems. Since we all hope that the industry will rebound, learning to apply new technologies now can help you take advantage of more favorable conditions down the road. Think of investing in information about these new technologies like your financial investments-except in this case, you can save for a sunny day.
Please provide comments to me at 1-888-THE-PTTC, or hq@pttc.org.