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Dieter HillerEnvironmental AdvisorSchlumberger Limited

WEC European RoundtableHamburg, 15th April 2005

 Reducing the Environmental Footprint in Oilfield Operations

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Schlumberger – The Company

World’s leading oilfield services company supplying technology, project management and information solutions Formation evaluation Directional drilling Well cementing and stimulation Well completions and productivity Consulting, software, information management

Two business segments: Oilfield Services and WesternGeco

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Schlumberger – Key Figures

52,000 employees of >140 nationalities Presence in > 100 countries Operating revenue (2004) $11.48

billion Net income (2004) $1.22 billion

4 Areas

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Baku: An Example

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From Plankton to Production…

Three principal stages:

Detection

Evaluation

Production

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Exploration: Marine Seismic Surveys

Reduced fuel consumption,less marine life disturbance

Monowing Streamer

Streamer Steering

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Exploration: Land Seismic Surveys

Seismic surveys are intrusive and may leave visible marks for a long time

VibratorsSeismicLines

Cooper Basin, AustraliaCooper Basin, Australia

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Exploration: Land Seismic Surveys

Solutions:Specific EMS

…the Rubber Tracked Vibrator (RTV)

and GPS/inertial navigation units that help reduce clearing of overhead obstacles

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Evaluation: Modelling and Planning

Advanced data acquisition (3D and 4D Seismic), processing and modelling improve the planning of well path and location

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Interpretation: High Resolution Seismic

Identification ofpay zonesoil-water contactoil-gas contactenables improved well positioning and design.

Less wells equals less impact, at improved performance

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Drilling a Hole in the Ground

Cuttings require disposal (and possibly treatment) Mud and fluids needed for borehole stability,

cuttings removal, cooling, lubrication, gravel packs, etc.

Wider holes require bigger drill bits and more power while drilling

(friction, weight of drill string), require more mud (chemicals), produce more cuttings, Give better access for downhole tools

Drill string for wider holes is less flexible

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Production: Directional Drilling

Coiled

Tubing

DrillingWytch Farm, UK

Horizontal displacement10,114 m

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Production: Directional Drilling

CoiledTubin

gDrillin

g

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Production: Coiled Tubing

The drill string from the rope:Smaller diameter, flexible, fit for many purposes

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Production: “Green Chemicals”

Environmentally acceptable chemicals in drilling mud and other chemicals used in drilling, stimulation, completion and gravel placement:

Viscoelastic surfactants (VES)

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Production: Flaring

Flaring of oil and gas…

…produces huge emissions and, during well cleaning, toxic by-products

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Well Testing in Abu Dhabi

Background Offshore Abu Dhabi, wells drilled into

carbonate reservoirs require acid stimulation in order to produce at their potential

During the clean-up phase of well testing operations: The produced well effluents were flared

and, Spent acid and produced water dumped in

the Gulf. These operational practices were causing major sea and air pollution.

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Conventional Well Testing Operations

Gas to BurnerChoke Manifold Separator

Surge

Tank

Transfer Pump

Oil Contaminated Water to Sea

Well Effluents

Oil to Flare

From WellHead

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Well Testing in Abu Dhabi

Developments The situation became worse with the

increased number of multilateral horizontal wells as longer intervals were now stimulated.

Consequently large quantities of well effluents were produced and contributing to further pollution.

Customer wanted environmentally friendly well testing operations.

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Well Testing in Abu Dhabi

Oily Water

Choke Manifold

Separator

Skimmer To Treat Separated Water

Surge Tank

Transfer Pump

Oil

Oil to Production Line

Clean Treated Water Disposed to Sea

Gas to Burner

Injecting TFA 400 Chemicals

Injecting Neutralize

r

The next stage…

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Well Testing: PhaseTester Vx

No flaring during production

Low pressure loss

Returns to production or export lineZero Flaring and Zero Pollution to the Environment

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Production Monitoring: 4D (Time-Lapse) Seismic

SHC indicator0 1 No change Large change

Mapping fluid movements and identifying unswept hydrocarbonsGullfaks Field, North Sea

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Seismic Contribution to Improved Recovery

Before 1980:2D: 25-30%of oil recovered

Slices

1980-95:3D: 40-50%recovered

Volumes

1996 - future:4D: 65-75%recovery*

Changes*BP/Shell’s Foinaven field estimate, Petroleum Engineer International; January, 1996.

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CO2 Capture and Storage

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Source: IPCC Third Assessment Report, 20011000 1200 1400 1600 1800 2000Year

Concentrations of GHGs have risen significantly over pre-industrial levels.

Surface ocean pH has also declined by 0.1 as additional CO2 dissolved.

Global Geochemical History

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Assumed Advances In:Assumed Advances In:• Fossil Fuels

• Energy intensity

• Nuclear

• Renewables

Assumed Advances In:Assumed Advances In:• Fossil Fuels

• Energy intensity

• Nuclear

• Renewables

Source: J. Edmonds, PNNL

Gap Technologies:Gap Technologies:• Carbon capture &

disposal Adv. fossil

• H2 and Adv. Transportation

• Biotechnologies Soils, Bioenergy, Adv.

Biological Energy

Gap Technologies:Gap Technologies:• Carbon capture &

disposal Adv. fossil

• H2 and Adv. Transportation

• Biotechnologies Soils, Bioenergy, Adv.

Biological Energy

The “Gap”

The Need for Breakthrough Technologies

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The GCEP R&D Program to Generate Technology Options

The Global Climate and Energy Project (GCEP) was established to conduct pre-commercial research necessary to develop the technology options needed to address the “gap”

GCEP is an unprecedented research alliance between a university and leading global corporations

It represents a 10-year, $225M commitment to developing groundbreaking technologies that may have a significant impact on a global scale

Mission

To Conduct Fundamental Research to Develop Technology Options for Growth

in Energy Use With Reduced Greenhouse Gas Emissions That May

Operate at a Significant Commercial and Global ScaleExternal

Institutions in US and Worldwide

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Geologic Storage of CO2

GCEP Project, Stanford University

Create a suite of tools for design and implementation of geologic sequestration projects: Site selection and

evaluation: effective methods to assess the integrity of geologic seals that limit CO2 migration.

Fluid migration: very efficient methods for predicting the flow paths and long-term fate of injected CO2.

Monitoring: appropriate tools for monitoring the state of injection projects at each stage.

continuous shales

discontinuous shales

Injection

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CO2 Storage Capacities

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CO2 Storage: Sleipner Field, Norway

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CO2 Storage: Sleipner Field, Norway

A growing CO2 “bubble”

observed after injection

Deformation of the storage formation