JULY 3, 2007

Industry Highlight: What's New In Artificial Lift (World Oil)
Each year World Oil runs a two-part article on new developments in the world of artificial lift. Authored by James Lea, Herald Winkler and Robert Snyder, the article covers new developments in five categories: sucker rod pumping, progressing-cavity pumping; gas-well deliquefying, and jet pumping. Examples of the technologies covered include:

• Through Tubing Conveyed Electrical Submersible Progressing Cavity Pumping System (ESPCP by Baker Hughes Centrilift) – allows the pump to be retrieved without removing the production tubing, motor, gear reducer, seal and cable. The pump is typically the first component requiring replacement, and since it can now be replaced without pulling the entire system, well servicing costs are dramatically lowered.

• Critical Velocity Reduction System (CVR by Weatherford – see page 21) – The most common methods for gas-well deliquefying are plunger lift, soap injection, or flow-area reduction. The CVR system provides for each method to be used either independently or in combination.

• Composite Progressing Cavity Technology (by EXOKO Composites Co.) – In conventional PCP pumps the stator made from chrome-plated steel is the wear element. When pumps fail, a costly pulling job is required. With EXOKO's design a precise elastomer layer is placed on the rotor and the stator is made from hard composite material. The rotor is now the wear element and can be retrieved and replaced at less cost by just pulling the rods.

DOE Highlight: Produced Water Management Information System (PWMIS) DOE's National Energy Technology Laboratory, in partnership with Argonne National Laboratory, has developed the web-based Produced Water Management Information System (PWMIS). The new system offers critical information on current technologies and best practices, summaries of relevant state and Federal regulations, and a decision tree for technology options to deal with produced water issues. PWMIS is an easily navigable web tool that consolidates all the required information in one location.

PTTC Highlight: Many of you are wondering – what has PTTC been doing? To put it succinctly, we've been engaged in a battle for economic survival. Good news! Two things have occurred. First, the Department of Energy has provided $1 million of funding through September 2008 to help PTTC transition to a primarily industry-funded organization. Second and exciting for the long-term, the American Association of Petroleum Geologists (AAPG) has come forth with an exciting proposal. AAPG and PTTC have expressed their “mutual intent” to conduct negotiations directed towards creating an AAPG-managed PTTC. Assuming positive negotiations, the transition to an AAPG-managed PTTC could occur by early fall. The new entity, although quite different, would remain true to the PTTC vision and would be very cost efficient. It would retain:

• The industry-directed and regionally-focused structure that is a core concept of PTTC,

• University involvement as Regional Lead Organizations,

• The strong commitment to maintaining local, affordable workshops,

• The multidisciplinary operator-oriented approach, and

• A separate legal identity as a 501(c)3 corporation.

Expanded capabilities would result from having access to management, marketing, communications, business/data systems, and information archival capabilities available within AAPG.

Trivia Question: In what Indiana towns were the discovery gas wells drilled that sparked the Indiana "gas boom" of the 1880s?