Material Challenges for the North Sea-1

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    Material Challenges for North Sea Oil & GasMaterial Challenges for North Sea Oil & GasProductionProduction A Well EngineerA Well Engineers Perspectives Perspective

    ITF Advanced Materials WorkshopITF Advanced Materials Workshop Steve Bedford February 21Steve Bedford February 21stst 20082008

    Mining Institute of ScotlandMining Institute of Scotland

    IOMIOM33 Petroleum and Drilling Engineering DivisionPetroleum and Drilling Engineering Division

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    Material Challenges for North Sea Oil and Gas ProductionMaterial Challenges for North Sea Oil and Gas Production AgendaAgenda Business EnvironmentBusiness Environment

    Operating EnvironmentOperating Environment

    Opportunities for Advanced Materials ?Opportunities for Advanced Materials ?

    ConclusionsConclusions

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    Business EnvironmentBusiness Environment

    Global Energy Demand: 1970 to 2030Global Energy Demand: 1970 to 2030

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    Business EnvironmentBusiness Environment

    UK Energy Demand and North Sea PrizeUK Energy Demand and North Sea Prize

    99% of UK99% of UKtransporttransport

    requires oilrequires oil

    UKCS couldUKCS coulddeliverdeliver

    another 27another 27

    bn boebn boe

    PotentialPotential

    investmentinvestment

    ofof 300bn300bn

    UK Electricity GenerationUK Electricity Generation

    Source UK Oil & GasSource UK Oil & Gas

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    Business EnvironmentBusiness Environment Costs and ReturnsCosts and Returns

    High global demand forHigh global demand for

    oilfield equipment,oilfield equipment,

    people and servicespeople and services

    Offshore supply costsOffshore supply costs

    up c68% on 2000up c68% on 2000

    Production sharingProduction sharing

    agreements andagreements and

    windfall taxeswindfall taxes

    Trend to divest matureTrend to divest mature

    fields/acreage to newfields/acreage to new

    entrantsentrants

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    Business EnvironmentBusiness Environment

    Increasing Public ConcernIncreasing Public Concern

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    Material Challenges for North Sea Oil and Gas ProductionMaterial Challenges for North Sea Oil and Gas Production

    AgendaAgenda

    Business EnvironmentBusiness Environment

    Operating EnvironmentOperating Environment

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    Operating EnvironmentOperating Environment

    Basins and InfrastructureBasins and Infrastructure

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    Operating EnvironmentOperating Environment

    Onshore Oilfield: Kimmeridge Bay, DorsetOnshore Oilfield: Kimmeridge Bay, Dorset First Dorset explorationFirst Dorset exploration

    well drilled in 1934well drilled in 1934

    Field on stream in 1959Field on stream in 1959

    Producing from theProducing from the

    naturally fracturednaturally fractured

    Cornbrash LimestoneCornbrash Limestone

    Production rateProduction rate

    declined from 500 todeclined from 500 to

    current 80 bbl/daycurrent 80 bbl/day

    Beam pumpedBeam pumped

    Sweet, light crude withSweet, light crude with

    very little gasvery little gas

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    Operating EnvironmentOperating Environment

    Southern North Sea GasSouthern North Sea Gas

    Typically sandstone reservoirs, often hydraulically fractured toTypically sandstone reservoirs, often hydraulically fractured to stimulate ratesstimulate rates

    First fields on stream in the mid 1960First fields on stream in the mid 1960ss

    As the larger fields were developed, smaller fields have been deAs the larger fields were developed, smaller fields have been developed withveloped withsubsea wells and unmanned small platforms. Move towards multi lasubsea wells and unmanned small platforms. Move towards multi lateralteral

    wells, under balanced drilling and dewells, under balanced drilling and de--liquification technologiesliquification technologies

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    Operating EnvironmentOperating Environment

    Large Integrated North Sea Oil PlatformsLarge Integrated North Sea Oil Platforms

    Typically sandstone reservoirs with highly prolific wells and waTypically sandstone reservoirs with highly prolific wells and water floodter flood

    Platforms typically accommodate 150 to 250 people with facilitiePlatforms typically accommodate 150 to 250 people with facilities for: drilling,s for: drilling,

    primary processing, export and life supportprimary processing, export and life support As fields age upgrades typically required to reduce discharges,As fields age upgrades typically required to reduce discharges, artificially liftartificially lift

    wells and access adjacent smaller fields e.g. subsea wellswells and access adjacent smaller fields e.g. subsea wells

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    Operating EnvironmentOperating Environment

    CRINE (Cost Reduction In the New Era)CRINE (Cost Reduction In the New Era)

    Novel designs toNovel designs to

    reduce developmentreduce development

    costs and therebycosts and therebyaccess smalleraccess smaller

    ReservoirsReservoirs

    Example is the HardingExample is the Harding

    Field where a jack upField where a jack upon a concrete storageon a concrete storage

    base is used forbase is used for

    drilling, production,drilling, production,

    storage and export.storage and export.Once the Field isOnce the Field is

    exhausted the facilityexhausted the facility

    will be moved to thewill be moved to the

    next fieldnext field

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    Operating EnvironmentOperating Environment

    Post Piper Alpha FacilitiesPost Piper Alpha Facilities

    Move to separateMove to separate

    living accommodationliving accommodation

    from process andfrom process and

    drilling facilitiesdrilling facilities

    Example is the BruceExample is the Bruce

    Platform with threePlatform with three

    bridge linkedbridge linkedstructures:structures:

    Quarters/Utilities:Quarters/Utilities:

    Drilling/Process andDrilling/Process and

    Export. Subsea wellsExport. Subsea wellstied back to thetied back to the

    Drilling/ProcessDrilling/Process

    platformplatform

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    Operating EnvironmentOperating Environment

    Subsea DevelopmentsSubsea Developments

    Increasing subsea well count in the North Sea to reduce capitalIncreasing subsea well count in the North Sea to reduce capital costscosts

    Use of floating production systems and mobile drilling rigs, parUse of floating production systems and mobile drilling rigs, particularly inticularly in

    deep water areas e.g. Foinaven and Scheihallion Fields in 550m odeep water areas e.g. Foinaven and Scheihallion Fields in 550m of water inf water in

    the North East Atlantic.the North East Atlantic.

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    Operating EnvironmentOperating Environment

    Supply Boat: Northern North Sea January 2007Supply Boat: Northern North Sea January 2007

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    Material Challenges for North Sea Oil and Gas ProductionMaterial Challenges for North Sea Oil and Gas Production AgendaAgenda Business EnvironmentBusiness Environment

    Operating EnvironmentOperating Environment

    Opportunities for Advanced Materials ?Opportunities for Advanced Materials ?

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    Opportunities for Advanced Materials ?Opportunities for Advanced Materials ?

    Corrosion / ErosionCorrosion / Erosion

    Many miles of pipework in placeMany miles of pipework in place surface, subsea and downholesurface, subsea and downhole

    Corrosion/erosion may not be an issue until conditions change e.Corrosion/erosion may not be an issue until conditions change e.g. CO2g. CO2

    content increasescontent increases

    Internal and external corrosion a major issueInternal and external corrosion a major issue

    Coatings/materials to prevent or repair corrosion ?Coatings/materials to prevent or repair corrosion ?

    IntelligentIntelligent materials to provide information or react to change in conditimaterials to provide information or react to change in condition ?on ?

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    Opportunities for Advanced Materials ?Opportunities for Advanced Materials ?

    Material DepositionMaterial Deposition

    Organic scale, hydrocarbon deposits, sand, rust are majorOrganic scale, hydrocarbon deposits, sand, rust are major

    production issuesproduction issues

    Non stickNon stick coatings ?coatings ? Materials that destroy unwanted deposits ?Materials that destroy unwanted deposits ?

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    Opportunities for Advanced Materials ?Opportunities for Advanced Materials ?

    PeoplePeople

    Protective equipment ?Protective equipment ?

    Location devices ?Location devices ?

    Health monitoring ?Health monitoring ?

    Lighter / stronger tools ?Lighter / stronger tools ?

    Lighting ?Lighting ?

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    Material Challenges for North Sea Oil and Gas ProductionMaterial Challenges for North Sea Oil and Gas Production

    ConclusionsConclusions

    Increasing demand for Oil and Gas with significantIncreasing demand for Oil and Gas with significant

    reserves remaining in the UK and multiplereserves remaining in the UK and multiple

    opportunities to export services/equipmentopportunities to export services/equipment

    internationallyinternationally

    Pressure on margins, mature facilities, challengingPressure on margins, mature facilities, challenginggeology and the emphasis on health, safety andgeology and the emphasis on health, safety and

    environmental protection are driving operators toenvironmental protection are driving operators to

    look for alternative materials in the UKCSlook for alternative materials in the UKCS

    Many possibilities for advanced materialsMany possibilities for advanced materials

    Mi i I tit t f S tl dMi i I tit t f S tl d

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    Material Challenges for North Sea Oil & Gas ProductionMaterial Challenges for North Sea Oil & Gas Production A Well EngineerA Well Engineers Perspectives Perspective ITF Advanced Materials WorkshopITF Advanced Materials Workshop Steve Bedford February 21Steve Bedford February 21stst 20082008

    Mining Institute of ScotlandMining Institute of Scotland

    IOMIOM33 Petroleum and Drilling Engineering DivisionPetroleum and Drilling Engineering Division