Oil and Gas News archives

BP Deploying Advanced Unmanned Water Quality Monitoring Vehicles in Gulf of Mexico Print

As part of its long term monitoring and research program in the Gulf of Mexico, BP is deploying a new technology that will enable nearly constant monitoring by two satellite-controlled, unmanned vehicles.

The vehicles, known as Wave Gliders and developed by Liquid Robotics in Silicon Valley, California, get their propulsion power from wave action and use solar power for their electronics. They will be deployed beginning today and begin a months-long, ongoing research program in the Gulf of Mexico.

"These vehicles will provide us a steady stream of data about water quality and should significantly increase the available data for ongoing research activity," said Mike Utsler, chief operating office of BP’s Gulf Coast Restoration Organization. "We will initially deploy the Wave Gliders between the Macondo well and the shoreline, and look to expand from there in the future.

The unique technology allows deployment of sensors persistently, for the long term, to monitor key environmental variables, including:

 

water quality – detection of any emulsified, dissolved and dispersed oil in water; phytoplankton 

                       (chlorophyll); colored, dissolved oxygen matter (CDOM) and other scientifically   

                        useful variables

marine mammal vocalizations

weather and water temperature data

"Initially we will be calibrating a set of nine optical sensors to monitor water quality, including trace amounts of dispersed oil, and will then add acoustic monitoring of marine mammal activity," said Roger Hine, president and CEO of Liquid Robotics. "We look forward to working with BP on this extended research program."

The first two Wave Glider vehicles will be deployed to the vicinity of the Macondo well; a second pair will be deployed in September. Data collected by the vehicles will be relayed via satellite and posted on a public website.

Also, access multimedia by going to the ftp site here:


http://www.liquidr.com/PressKit/

Username is LRIMedia

Password is Pre55Kit

Chevron Announces Significant Natural Gas Find in Australia Print

Chevron Corp. (NYSE: CVX) has announced further drilling success in the Carnarvon Basin offshore Western Australia, Australia’s premier hydrocarbon basin.

The Acme-1 exploration discovery well is located in the WA-205-P permit area offshore Western Australia approximately 93 miles (150 km) from Onslow. Drilled in 2,880 feet (878 m) of water to a depth of 15,469 feet (4,715 m), the well encountered approximately 896 feet (273 m) of net gas pay. 

George Kirkland, vice chairman, Chevron, said, “In terms of net gas pay, Acme-1 is one of our most significant natural gas discoveries in Australia. As our ninth and largest offshore discovery in Western Australia in the last 12 months, it underscores the quality of our drilling program and our commitment to technical excellence and safe operations.”

Jim Blackwell, president, Chevron Asia Pacific Exploration and Production, said, “We are realizing the opportunities we have as a leading lease holder in the Carnarvon Basin.  We expect this discovery to help underpin potential expansion opportunities at the Wheatstone liquefied natural gas hub. Adding to our Australian portfolio progresses our long-term plans to build a leading natural gas business in Australia and the Asia-Pacific region.” Chevron’s Australian subsidiary is the operator of WA-205-P and holds a combined 67 percent interest, while Shell Development (Australia) holds the remaining interest. 

Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at http://www.chevron.com.

 

 

Research and Markets: The Latest US Oil & Gas Report Forecasts That the Country Will Account For 89.35% of North American Regional Oil Demand By 2014 Print

Research and Market) has announced the addition of the "United States Oil and Gas Report Q3 2010" report to their offering.

The United States Oil and Gas Report provides industry professionals and strategists, corporate analysts, oil and gas associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the United States' oil and gas industry.

The latest US Oil & Gas Report from BMI forecasts that the country will account for 89.35% of North American regional oil demand by 2014, while contributing 67.45% to supply. In North America, overall oil consumption was an estimated 20.89mn barrels per day (b/d) in 2009. It is set to rise to around 21.78mn b/d by 2014. North American regional oil production in 2009 averaged an estimated 10.50mn b/d. It is set to rise to 10.60mn b/d by 2014. Net imports for the region should be 11.18mn b/d in 2014 up from an estimated 10.39mn b/d in 2009.

In terms of natural gas, North America consumed an estimated 742bn cubic metres (bcm) in 2009, with demand of 804bcm targeted for 2014, representing 8.4% growth. Estimated production of 748bcm in 2009 should ease to 723bcm in 2014, which implies net imports rising to some 81bcm by the end of the period. The US share of gas consumption in 2009 was an estimated 86.93%, while it contributed 75.94% to regional production. By 2014, its share of gas consumption is forecast to be 86.82%, with 74.69% of regional supply.

We are sticking with our forecast that the OPEC basket of crudes will average US$83.00/bbl in 2010. Wide variations in crude differentials so far in 2010 make forecasting tricky for Brent, West Texas Intermediate (WTI) and Urals, but we believe the three benchmarks will average around US$85.11, US$88.22 and US$83.62/bbl respectively, with Dubai coming in at US$83.14. By 2011, there should be further growth in oil consumption and more room for OPEC to regain market share and reduce surplus capacity through higher production quotas. We are assuming a further increase in the OPEC basket price to an average US$85.00/bbl. For 2012 and beyond, we continue to use a central case forecast of US$90.00/bbl for the OPEC basket.

For 2010, the BMI assumption for premium unleaded gasoline is an average global price of US$96.83/bbl. The year-on-year (y-o-y) rise in 2010 gasoline prices is put at 38%. Gasoil in 2010 is expected to average US$92.45/bbl, with the full-year outturn representing a 37% increase from the 2009 level. For jet fuel in 2010, the annual level is forecast to be US$95.58/bbl. This compares with US$70.66/bbl in 2009. The 2010 average naphtha price is put by BMI at US$82.46/bbl, up 39% from the previous years level.

US real GDP is assumed by BMI to have fallen by 2.4% in 2009, followed by forecast growth of 2.8% in 2010. We are assuming 2.2% average annual growth in 2010-2014. Average US oil and liquids production is estimated at 7.29mn b/d in 2009. By 2014, we are forecasting output of 7.15mn b/d. Our estimate for 2009 US oil demand is 18.69mn b/d, thanks to the impact of the economic slowdown on consumption. We now see US oil use hitting 19.46mn b/d by 2014, requiring crude imports of 12.31mn b/d.

Between 2010 and 2019, we are forecasting a 7.37% fall in US oil production, with output peaking at 7.32mn b/d in 2012 before declining to 6.85mn b/d in 2019. Given that oil consumption is forecast to rise by 2.00%, imports rise from an estimated 11.40mn b/d in 2010 to 12.32mn b/d during the forecast period. Gas production should ease from the estimated 2010 level of 552bcm to a low of 530bcm in 2015, then rally to 560bcm by 2019. Demand is forecast to rise from an estimated 658bcm to 737bcm, requiring net imports to rise to a 2016 peak of 200bcm, in the form of pipeline volumes and liquefied natural gas (LNG). Details of BMI's 10-year forecasts can be found in the appendix to this report.

According to BMI's country risk team, the US long-term political risk score is 81.2, compared with the Developed Markets average of 86.7 and the global average of 63.7. Our long-term economic rating for the country is 66.8, below the Developed Markets average of 67.0 and above the global average of 53.7. The US is a deregulated, highly competitive and relatively mature energy market. There are numerous international and domestic companies operating at all levels, from exploration, through pipelines, refining and retailing. The market is dominated by US-based organisations, with Britain's BP the biggest foreign investor, followed by Royal Dutch Shell.

Noble Energy Receives Government Approval to Develop Tamar Gas Field Offshore Israel Print

Noble Energy, Inc. (NYSE:NBL) has announced that it has received government approval for the development of the 2009 Tamar gas discovery in the Mediterranean offshore Israel. Until recently, Noble Energy and its partners planned to develop Tamar using an option (Tamar North) that would flow gas from the deepwater field to a new onshore receiving terminal to be constructed in the northern half of the country. However, the selection and approval of the site for the onshore terminal has been significantly delayed. The Tamar North development option was designed to deliver gas to Israeli markets in 2012 thus assuring that customers' gas needs would be continuously and fully met. The Mari-B field located offshore Ashkelon, which is currently the country's only source of domestic natural gas, has been reliably meeting gas needs since 2004, but its production is expected to begin declining sharply in late 2013. Noble Energy operates both the Tamar and Mari-B fields.

Noble Energy and its Tamar partners recommended last week to Israel's Minister of National Infrastructure and the Petroleum Commissioner that a Tamar South development option be considered which would utilize the existing onshore gas receiving terminal located at Ashdod. Tamar South would involve a similar field development as the northern option, but would bring the gas to a new offshore platform to be constructed next to the existing Mari-B platform and then redeliver the gas to the existing pipeline that connects Mari-B to the Ashdod onshore terminal. The new platform would take advantage of the structural design of the existing and proven Mari-B platform. The Tamar South development option would provide for initial deliveries of Tamar gas by late 2012. Cost of Tamar South is approximately the same as Tamar North.

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "While we are disappointed that a decision was not reached in a timely manner regarding a northern onshore terminal site, we are excited that an alternative development plan has been identified which has now received the necessary support of the Government of Israel. We continue to believe that Israel having a second gas receiving terminal in the northern half of the country provides significant benefits. However, it has also been made clear to us that the consequences to our customers, and ultimately the State of Israel, of delaying initial deliveries of Tamar gas by waiting for a northern terminal location are far too severe. Demand for natural gas is growing and today we are delivering record amounts of gas from Mari-B, which are being used primarily for electric power generation. The Mari-B partners are investing heavily in new wells and gas compression to maintain high gas deliverability for the next few years, but Mari-B gas reserves are finite and Tamar gas is needed soon. We will continue to work with the National Planning Council and the involved ministries in evaluating northern sites as we believe ultimately one will be needed. In the meantime we are pleased that the Tamar South option provides a fallback means for fulfilling Israel's near-term gas needs. The decision reached by the Minister of National Infrastructure on the proposed development plan paves the way for final sanctioning of this important project."

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company operates primarily in the Rocky Mountains, Mid-Continent, and deepwater Gulf of Mexico areas in the United States, with significant international operations offshore Israel and West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Visit Noble Energy online at www.nobleenergyinc.com.

Oil & Gas Companies to Increase IT Spending as a Result of BP Oil Spill, According to IDC Energy Insights Print

New Study Notes Health Safety and Environment Systems, Enterprise Asset Management Systems, Application and Data Integration, and Advanced Analytics as Key Areas of Growth Over Next 2-3 Years

 IDC Energy Insights has announced the availability of a new perspective, IT Impacts from the BP Oil Spill (Document #EI224330, July 2010). The document indicates that broad Federal and State regulatory and policy changes initiated as a result of the recent BP oil spill, will significantly increase regulatory requirements related to health, safety, and environment in the oil & gas industry. These changes are predicted to increase spending by oil & gas companies on a range of technologies including health safety and environment (HSE) systems, enterprise asset management (EAM) systems, application and data integration, and advanced analytics.

"Prior to the disaster in the Gulf of Mexico, IDC's forecast for worldwide spending by oil & gas companies on HSE software was predicted to top $131 million in 2010. The expected regulatory changes could potentially double the growth rate of spending on these applications during the next 2-3 years. Software vendors that could benefit from this increased spending include SAP, IHS, Enviance, and Syntex," said Rick Nicholson, vice president, Research, IDC Energy Insights.

EAM applications – systems used to manage physical assets such as rigs, plants, and pipelines – are also expected to see an increased growth rate in spending due to new regulatory requirements. The IDC Energy Insights study reveals that worldwide spending by oil & gas companies on work and asset management software, which includes EAM, was, prior to the oil spill, predicted to be $297 million in 2010. Software vendors that could benefit are IBM, Oracle, SAP, and ABB (via its recent acquisition of Ventyx).

The IDC Energy Insights study also predicts increased investments by oil & gas companies in advanced analytics software, especially predictive analytics and real-time or streaming analytics as well as investments in integration and process automation middleware in response to the application integration issues raised by the BP oil spill.

"Ultimately, the oil & gas industry must go beyond technology changes and invest in changes to its people and processes to achieve the standards of environmental protection and worker safety demanded by all stakeholders," concluded Mr. Nicholson.

About IDC Energy Insights

IDC Energy Insights provides research-based advisory and consulting services focused on market and technology developments in the energy and utility industries. Staffed by senior analysts with decades of industry experience, IDC Energy Insights covers both the utility and oil & gas segments, providing independent, timely, and relevant analysis focused on key business and technology issues. IDC Energy Insights serves a diverse and growing global client base, including electric, gas and water utilities, IT suppliers, independent power producers, retail energy providers, oil and gas companies, equipment manufacturers, government agencies, financial institutions, and professional services firms. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. Visit the IDC Energy Insights Community at http://idc-insights-community.com/energy.

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