Unconventional Oil, Natural Gas is the 'Sweet Spot' for US

Unconventional oil and gas activity is already revolutionizing America's energy future and bringing enormous benefits to its economy, Director of Consulting Energy and Natural Resources at IHS Jerry Eumont said. Net petroleum imports have fallen from 60 percent of total consumption in 2005 to 42 percent in October 2012.

The recent surge in unconventional oil and gas and its effect in the United States was the topic of discussion at the American Petroleum Institute’s (API) Houston Chapter luncheon Tuesday.

U.S. oil production, which has risen 25 percent since 2008, reached about 8.5 million barrels per day in 2012, Eumont said.

Tight oil is contributing the most to this increase due to recent advances in energy development. Unconventional natural gas is also contributing to the transformation in the natural gas market. A dozen years ago, shale gas production was only 2 percent of the nation's total natural gas production but represents 37 percent today.

This "renaissance" in the nation's unconventional market means an increase in employment – about 1.7 million jobs were created in 2012, Eumont noted. This number is projected to increase to 2.9 million jobs by the end of the decade and 3.4 million in 2035.

"Job creation in the shale plays is occurring in the oil company and service side, but is also occurring throughout the regions that have active plays," said Eumont. "Hotel, restaurants, construction, etc. are all benefiting from this activity. The impact as it trickles down is tremendous."

Unlocking unconventional energy will generate millions of jobs and billions in government receipts, Eumont added.

This energy renaissance is expected to make significant contributions to the U.S. economy through direct employment, its many and diverse connections with supplier industries, the amount of spending this direct and indirect activity supports throughout the economy, and the revenues that flow to federal and state and local governments.

IHS expects substantial growth in capital expenditures and employment to occur in support of the expansion of production within the unconventional sector:

More than $5.1 trillion in capital expenditures will take place between 2012 and 2035 across unconventional oil and natural gas activity, of which: Over $2.1 trillion in capital expenditures will take place between 2012 and 2035 in unconventional oil activityAbout $3 trillion in capital expenditures will take place between 20102 and 2035 in unconventional natural gas activityOn average, direct employment will represent about 20 percent of all jobs resulting from unconventional oil and natural gas activity with the balance contributed by indirect and induced employmentBy 2020, total government revenues will grow to just over $111 billionIn 2012, unconventional energy activity supported over 360,000 direct jobs, over 537,000 indirect jobs in supplying industries, and over 850,000 induced jobs – a total of more than 1.7 million jobs in the lower 48 U.S. states

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Proserv Scores North Sea Duo

Rapidly-evolving energy production technology services company Proserv has secured two major contract wins worth in excess of $23.5 million (GBP 15 million) for work in the North Sea, further strengthening the company's market-leading position in the subsea controls and communications field.

The first deal is with TAQA for the control of subsea wells approximately 10.3 miles (16.5 kilometers) from the Tern platform in the Cladhan field. Proserv will implement a system to control three subsea wells as part of a significant development project for the company. Using Proserv's proprietary Open Communications Controller (OCC) technology, the system will provide a high-speed network capable of communication speeds up to 1.3 Mbps.

The second contract award is with another leading operator and also involves work to control the subsea wells. Proserv will use a cutting-edge system, which will control a number of wells and manifolds. This features a fiber-optic communications system using Proserv's Open Communications Hub (OCH) technology for fully transparent communications and high-speed data monitoring from the subsea multi-phase flow meters and control modules.

Commenting on the recent award wins, David Lamont, Proserv's chief executive officer, said: "Both contract wins reflect Proserv's industry-leading position and strong track record for delivering high-value integrated technology systems on time and within budget.

"Proserv's fast-growing suite of technologies have been developed based on the company's 'ingeniously simple' philosophy and are underpinned by the company's international talent pool of technical and engineering expertise which has expanded considerably through organic growth and strategic acquisition.

"As a result, Proserv continues to expand both globally and particularly in the North Sea where our strong and expanding client base is testament to our levels of technology and service. We look forward to working with two leading operators in the region."

In 2012, Proserv made two high-profile acquisitions which not only bolstered its capabilities but saw its global headcount increase by more than 600 people to over 1,600.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

DNO Made Record Profit in 2012

Norway's DNO International announced Tuesday that it made a record net profit in 2012 of $180 million (NOK 1.04 billion) after its fourth quarter production increased to 46,398 barrels of oil equivalent per day (compared to an average of 38,354 for the year as a whole).

The company spent $220 million on exploration and development in 2012.

"We are thrilled to have surpassed the billion NOK mark in net profits," DNO Executive Chairman Bijan Mossavar-Rahmani said in a company statement.

"DNO doubled exploration and development spending in 2012 and funded the program from operating cash flow. Based on current plans, we expect to boost spending another 50 percent to NOK 1.75 billion [$315 million] in 2013."

Based in Norway, DNO is focused on the Middle East and North Africa and holds stakes in 17 licenses that are at various stages of exploration, development and production in the Kurdistan region of Iraq, the Republic of Yemen, the Sultanate of Oman, the UAE and the Tunisian Repulic.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Norway Oil Min: Statoil Pipeline May Pave Way for Permanent Arctic Hub

Statoil ASA's plan to bring oil by pipeline from the Barents Sea to a new terminal in the country's far north could pave the way for a permanent hub in the Arctic, Norway's Minister of Petroleum and Energy Ola Borten Moe said Tuesday.

"I am a huge optimist to what we may see in the Barents Sea," Mr. Moe told Dow Jones Newswires in an interview. "It seems Statoil and others are getting the hang of this, and that could mean huge, huge activity for generations. That is entirely good news."

A new terminal at Veidnes near Honningsvag will service oil from Skrugard and Havis, which has estimated reserves of between 400 million and 600 million barrels of oil.

Both Statoil and the minister were optimistic about the potential for more discoveries in the Barents Sea, which has not yet been thoroughly explored. Statoil expects to conclude a drilling campaign this summer, and said it's able to connect more pipelines to the new terminal if more oil is found.

"The facility is also flexible, and can take more resources than Skrugard and Havis. It's for the future," Mr. Moe said.

Norway is expected to open a formerly disputed area in the southeast Barents Sea for oil drilling this summer, following a deal with Russia.

"I want to be an optimist too, but we won't know until we have found something," said Ivar Aasheim, Statoil's director for field development in Norway.

The company is already part of two Barents Sea developments. It's operating in the Snohvit gas field and the Melkoya liquefied natural gas plant in Hammerfest, and has a 35% stake in the Eni SpA operated Goliat oil field, expected on stream in late 2013.

"This is a new petroleum province for Norway. That's good for Norway and very good the northern part of Norway," Mr. Moe told a small gathering of reporters, Statoil executives and Members of Parliament who were invited to eat cake at his office in the Norwegian capital. "We're having a little party here."

Statoil said it would deliver a plan for development and operation for Skrugard and Havis by 2014 and start production in 2018, expecting to produce up to 200,000 barrels a day.

"Statoil has worked steadily, mapping the resources up there," Mr. Aasheim said. "Skrugard and Havis is in a way our breakthrough in the Barents Sea."

Statoil is the main operator of Skrugard and Havis, with a 50% stake. Eni SpA has a 30% stake and state-owned Petoro AS--which manages Norway's direct ownership in oil and gas fields--has a 20% stake.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Unconventional Oil, Natural Gas is the 'Sweet Spot' for US

Unconventional oil and gas activity is already revolutionizing America's energy future and bringing enormous benefits to its economy, Director of Consulting Energy and Natural Resources at IHS Jerry Eumont said. Net petroleum imports have fallen from 60 percent of total consumption in 2005 to 42 percent in October 2012.

The recent surge in unconventional oil and gas and its effect in the United States was the topic of discussion at the American Petroleum Institute’s (API) Houston Chapter luncheon Tuesday.

U.S. oil production, which has risen 25 percent since 2008, reached about 8.5 million barrels per day in 2012, Eumont said.

Tight oil is contributing the most to this increase due to recent advances in energy development. Unconventional natural gas is also contributing to the transformation in the natural gas market. A dozen years ago, shale gas production was only 2 percent of the nation's total natural gas production but represents 37 percent today.

This "renaissance" in the nation's unconventional market means an increase in employment – about 1.7 million jobs were created in 2012, Eumont noted. This number is projected to increase to 2.9 million jobs by the end of the decade and 3.4 million in 2035.

"Job creation in the shale plays is occurring in the oil company and service side, but is also occurring throughout the regions that have active plays," said Eumont. "Hotel, restaurants, construction, etc. are all benefiting from this activity. The impact as it trickles down is tremendous."

Unlocking unconventional energy will generate millions of jobs and billions in government receipts, Eumont added.

This energy renaissance is expected to make significant contributions to the U.S. economy through direct employment, its many and diverse connections with supplier industries, the amount of spending this direct and indirect activity supports throughout the economy, and the revenues that flow to federal and state and local governments.

IHS expects substantial growth in capital expenditures and employment to occur in support of the expansion of production within the unconventional sector:

More than $5.1 trillion in capital expenditures will take place between 2012 and 2035 across unconventional oil and natural gas activity, of which: Over $2.1 trillion in capital expenditures will take place between 2012 and 2035 in unconventional oil activityAbout $3 trillion in capital expenditures will take place between 20102 and 2035 in unconventional natural gas activityOn average, direct employment will represent about 20 percent of all jobs resulting from unconventional oil and natural gas activity with the balance contributed by indirect and induced employmentBy 2020, total government revenues will grow to just over $111 billionIn 2012, unconventional energy activity supported over 360,000 direct jobs, over 537,000 indirect jobs in supplying industries, and over 850,000 induced jobs – a total of more than 1.7 million jobs in the lower 48 U.S. states

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Oil Majors Back Scottish Corrosion Prevention Firm

Scottish oil and gas technology firm LUX Assure announced Wednesday that it has received an investment of approximately $5.2 million from a number of sources, including oil majors ConocoPhillips and Statoil.

The firm, which specializes in corrosion management, will use the funds to transform itself from a technology development business to a service provider for the oil and gas sector.

LUX Assure Chairman Laurence Ormerod said in a company statement:

"This major investment will allow LUX to capitalize on the excellent chemical monitoring products developed by the company. Our CoMic and OMMICA products have been very well received by the industry so this seems to be an appropriate time to dedicate the company to growing sales, both within the UK and overseas. We are delighted to have ConocoPhillips and Statoil as new shareholders."

As well as receiving investment from ConocoPhillips and Statoil Technology Invest, Archangel Informal Investment and the Scottish Investment Bank (a division of Scottish Enterprise) also took part in the funding round, LUX Assure said.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Caldus Engineering Appoints New MD

UK-based oilfield services firm Caldus Engineering announced Wednesday that it has appointed Brian Green as its new managing director.

Green joins the firm from First Subsea and has more than 35 years' experience in the offshore industry. At Caldus, he will be responsible for developing the offshore market for the firm's integrity management, high-pressure/high-temperature monitoring and control systems and remote 3D seismic monitoring devices.

Caldus specializes in down-hole tools, subsea oil and gas and extreme geothermal engineering. The firm is a subsidiary of Norway's Badger Explorer.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here