Centrica Reports Good Performance from Upstream Activities

UK integrated energy firm Centrica reported Monday that the performance by its international upstream gas and oil business has been good so far this year.

In a trading update, Centrica said it expects total production from existing assets to be around 75 million barrels of oil equivalent in 2013, up from 67 MMboe in 2012. It added that it expects the package of Western Canadian Sedimentary Basin conventional gas and crude oil assets it is acquiring from Suncor to produce around 15 MMboe in 2013.

Meanwhile, the firm noted that it achieved first gas from its York and Rhyl fields during the first quarter of the year, while its other approved projects – Key, Grove, Valemon and Cygnus – remain on track to bring 86 Mmboe of reserves into production over the next three years.

In exploration, Centrica noted that two out of three wells drilled during the first quarter were successful.

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.

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Centrica Reports Good Performance from Upstream Activities

UK integrated energy firm Centrica reported Monday that the performance by its international upstream gas and oil business has been good so far this year.

In a trading update, Centrica said it expects total production from existing assets to be around 75 million barrels of oil equivalent in 2013, up from 67 MMboe in 2012. It added that it expects the package of Western Canadian Sedimentary Basin conventional gas and crude oil assets it is acquiring from Suncor to produce around 15 MMboe in 2013.

Meanwhile, the firm noted that it achieved first gas from its York and Rhyl fields during the first quarter of the year, while its other approved projects – Key, Grove, Valemon and Cygnus – remain on track to bring 86 Mmboe of reserves into production over the next three years.

In exploration, Centrica noted that two out of three wells drilled during the first quarter were successful.

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.

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Center Formed to Provide Shale Performance Standards

A group of leading environmental organizations, philanthropic foundations, and energy companies have collaborated to form a unique center to provide producers with certification of performance standards for shale development. The Center for Sustainable Shale Development (CSSD) has established 15 initial performance standards designed to ensure safe and environmentally responsible development of the Appalachian Basin's abundant shale gas resources. These standards will form the foundation of the CSSD's independent, third-party certification process.

"CSSD is the result of an unprecedented effort that brought together a group of stakeholders with diverse perspectives, working to create responsible performance standards and a rigorous, third-party evaluation process for shale gas operations," said Robert Vagt, president of The Heinz Endowments. "This process has demonstrated for us that industry and environmental organizations, working together, can identify shared values and find common ground on standards that are environmentally protective."

CSSD's founding participants are:

ChevronClean Air Task ForceCONSOL EnergyEnvironmental Defense FundEQT CorporationGroup Against Smog and Pollution (GASP)Heinz EndowmentsCitizens for Pennsylvania's Future (PennFuture)Pennsylvania Environmental CouncilShellWilliam Penn Foundation

Technical support has been provided by Lawrence Livermore National Laboratory, ICF International, and the law firm of Eckert Seamans Cherin & Mellott.

"While shale development has been controversial, everyone agrees that, when done, producers must minimize environmental risk," said Armond Cohen, executive director at Clean Air Task Force. "These standards are the state of the art on how to accomplish that goal, so we believe all Appalachian shale producers should join CSSD, and the standards should also serve as a model for national policy and practice."

Through discussions over the past two years, CSSD participants established a shared vision of performance and environmental risk minimization for natural gas development in the Appalachian region. The group's participants have worked to adopt a set of progressive and rigorous performance standards based on today's understanding of the risks associated with natural gas development and the technological capacity to minimize those risks.

"CSSD is focusing on the establishment of standards that will initially address the protection of air and water quality and climate, and will be expanded to include other performance standards such as safety," said Nicholas J. DeIuliis, president of CONSOL Energy. "Fundamentally, the aim is for these standards to represent excellence in performance."

Companies can begin seeking certification in these areas later this year.

CSSD also plans to develop programs to share best practices.

"Raising the bar on performance and committing to public, rigorous and verifiable standards demonstrates our companies' determination to develop this resource safely and responsibly," said Bruce Niemeyer, president of Chevron Appalachia. "Throughout the development of CSSD, the collaborative effort of environmental organizations, foundations and energy companies has been the key to achieving consensus on regional performance standards."

"This initiative is an important complement to strong regulatory frameworks. It's also a model of the regional collaborations recommended by the Shale Gas Production Subcommittee of the U.S. Secretary of Energy's Advisory Board to help drive a process of continuous improvement," said Jared Cohon, president of Carnegie Mellon University and a member of CSSD's Board of Directors.

"While the potential economic and environmental benefits of shale gas are substantial, the public expects transparency, accountability and a fundamental commitment to environmental safety and the protection of human health from the companies operating throughout the region. CSSD is a sound step toward assuring the public that shale development is being done to the requisite standards of excellence," said Paul O'Neill, former Secretary of the Treasury and retired Chairman of Pittsburgh-based Alcoa and a member of CSSD's Board of Directors.

Members of CSSD's Board of Directors are:

Armond Cohen, Executive Director, Clean Air Task Force;Jared Cohon, President of Carnegie Mellon University;Nicholas Deluliis, President of CONSOL Energy;Paul Goodfellow, Vice President, U.S. Unconventionals, Shell;Paul King, President, Pennsylvania Environmental Council;Fred Krupp, President, Environmental Defense Fund;Jane Long, Principal Associate Director/Fellow, Lawrence Livermore National Laboratory (retired);Bruce Niemeyer, President, Chevron Appalachia;Paul O'Neill, former Secretary of the U.S. Treasury Department and former CEO of Alcoa;David Porges, President and CEO of EQT Corporation;Robert Vagt, President, The Heinz Endowments; andChristine Todd Whitman, former Administrator of the U.S. Environmental Protection Agency and former Governor of New Jersey.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

Center Formed to Provide Shale Performance Standards

A group of leading environmental organizations, philanthropic foundations, and energy companies have collaborated to form a unique center to provide producers with certification of performance standards for shale development. The Center for Sustainable Shale Development (CSSD) has established 15 initial performance standards designed to ensure safe and environmentally responsible development of the Appalachian Basin's abundant shale gas resources. These standards will form the foundation of the CSSD's independent, third-party certification process.

"CSSD is the result of an unprecedented effort that brought together a group of stakeholders with diverse perspectives, working to create responsible performance standards and a rigorous, third-party evaluation process for shale gas operations," said Robert Vagt, president of The Heinz Endowments. "This process has demonstrated for us that industry and environmental organizations, working together, can identify shared values and find common ground on standards that are environmentally protective."

CSSD's founding participants are:

ChevronClean Air Task ForceCONSOL EnergyEnvironmental Defense FundEQT CorporationGroup Against Smog and Pollution (GASP)Heinz EndowmentsCitizens for Pennsylvania's Future (PennFuture)Pennsylvania Environmental CouncilShellWilliam Penn Foundation

Technical support has been provided by Lawrence Livermore National Laboratory, ICF International, and the law firm of Eckert Seamans Cherin & Mellott.

"While shale development has been controversial, everyone agrees that, when done, producers must minimize environmental risk," said Armond Cohen, executive director at Clean Air Task Force. "These standards are the state of the art on how to accomplish that goal, so we believe all Appalachian shale producers should join CSSD, and the standards should also serve as a model for national policy and practice."

Through discussions over the past two years, CSSD participants established a shared vision of performance and environmental risk minimization for natural gas development in the Appalachian region. The group's participants have worked to adopt a set of progressive and rigorous performance standards based on today's understanding of the risks associated with natural gas development and the technological capacity to minimize those risks.

"CSSD is focusing on the establishment of standards that will initially address the protection of air and water quality and climate, and will be expanded to include other performance standards such as safety," said Nicholas J. DeIuliis, president of CONSOL Energy. "Fundamentally, the aim is for these standards to represent excellence in performance."

Companies can begin seeking certification in these areas later this year.

CSSD also plans to develop programs to share best practices.

"Raising the bar on performance and committing to public, rigorous and verifiable standards demonstrates our companies' determination to develop this resource safely and responsibly," said Bruce Niemeyer, president of Chevron Appalachia. "Throughout the development of CSSD, the collaborative effort of environmental organizations, foundations and energy companies has been the key to achieving consensus on regional performance standards."

"This initiative is an important complement to strong regulatory frameworks. It's also a model of the regional collaborations recommended by the Shale Gas Production Subcommittee of the U.S. Secretary of Energy's Advisory Board to help drive a process of continuous improvement," said Jared Cohon, president of Carnegie Mellon University and a member of CSSD's Board of Directors.

"While the potential economic and environmental benefits of shale gas are substantial, the public expects transparency, accountability and a fundamental commitment to environmental safety and the protection of human health from the companies operating throughout the region. CSSD is a sound step toward assuring the public that shale development is being done to the requisite standards of excellence," said Paul O'Neill, former Secretary of the Treasury and retired Chairman of Pittsburgh-based Alcoa and a member of CSSD's Board of Directors.

Members of CSSD's Board of Directors are:

Armond Cohen, Executive Director, Clean Air Task Force;Jared Cohon, President of Carnegie Mellon University;Nicholas Deluliis, President of CONSOL Energy;Paul Goodfellow, Vice President, U.S. Unconventionals, Shell;Paul King, President, Pennsylvania Environmental Council;Fred Krupp, President, Environmental Defense Fund;Jane Long, Principal Associate Director/Fellow, Lawrence Livermore National Laboratory (retired);Bruce Niemeyer, President, Chevron Appalachia;Paul O'Neill, former Secretary of the U.S. Treasury Department and former CEO of Alcoa;David Porges, President and CEO of EQT Corporation;Robert Vagt, President, The Heinz Endowments; andChristine Todd Whitman, former Administrator of the U.S. Environmental Protection Agency and former Governor of New Jersey.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.

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Sunset Industries Notes Availability of Drilling Performance Fluid

Sunset Industries confirmed an immediate availability worldwide of its Drilling Performance Fluid because of a strategic relationship that has been accepted from a top 3 company oilfield company for global distribution.

"As of 2/18/13, operators can immediately order our product and increase profitability with all wells worldwide," said Mike Long, CEO at Sunset Industries.

Many operators in the United States have already benefited from this cutting edge Drilling Performance Fluid. Recently a top U.S. operator used the product in the Granite Wash with a direct comparison wells that were 110 feet apart. Well #1 was drilled straight to KOP with no torque issues. The Drilling Performance Fluid was called in for use because Well #2 was approaching max torque limits shortly after intermediate casing due to a 12 degree tangent, starting at 500 feet. At this time it appeared that the well could not be completed.

Well #1 had no Drilling Performance Fluid and Well #2 had the product in the system at 3 percent concentration. Results from well #2, they finished the curve 54 percent faster, there was 37 percent reduction in torque, from end of curve a 12 percent increase in ROP, in addition they saved 2 Drill Bits & 2 Trip Outs.

With over 150,000 in savings a company spokesperson said, "We would not have been able to complete this hole without the Pro One Drilling Performance Fluid." (Case studies available upon request)

The Feb. 18 update is driven by customer feedback and is part of Sunset Industries' commitment to deliver the latest product updates and competitive enhancements.

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

Innovation: Chevron’s ‘i-field’ Links Performance, Savings

USNews.com has a good read on Chevron’s digital investments, which the company says will save up to a billion dollars a year in operating costs in 2016. The linchpin is Chevron’s digital oil field, the “i-field,” which is short for “intelligent field.” USNews explains:

“Chevron's i-field harnesses advanced technology and communications to improve performance at 40 strategic assets throughout the world, including some of its biggest and most productive oil and gas fields. The company is rolling out six to eight mission-control centers focused on separate business areas, ranging from machinery to drilling to wells and reservoirs, that monitor those assets in real-time and rely on sophisticated computer algorithms for early detection of problems. From Chevron's perspective, the i-field is now essential to its global operations, which span six continents.”

Chevron isn’t the only company doing these things (USNews notes that Shell and ConocoPhillips have their own versions), but it is recognized as one of the oil and natural gas industry’s leaders. Basically, to overcome the global and labor-intensive characteristics of oil and gas development, Chevron has digitized a number of its operations. USNews:

“Chevron has deployed thousands of tiny sensors, only millimeters or centimeters in size, that monitor field operations and transmit data, both wired and wirelessly, back to central locations. The sensors instantaneously track pressure, temperature, and other readouts and aid with the mapping of underground fuel deposits, allowing the company to maximize production. Chevron also employs analytics to evaluate data streams in real-time from oil wells, drill rigs, ships, and elsewhere.”

The company has two mission-control facilities in Houston that oversee drilling and machinery support and two others in Lagos, Nigeria, and Covington, La., that monitor deepwater drilling. USNews:

“High above Houston in an office tower, a tech-savvy team at Chevron's machinery support hub monitors thousands of pieces of equipment, in real-time, across every continent except Antarctica. Using software to analyze data transmitted by sensors, it conducts ‘predictive intelligence’ to pinpoint when equipment, such as rotating devices called compressors, needs maintenance ‘so we can change out parts before they break down,’ [Chevron Energy Technology President Paul] Siegele says.”

USNews includes some examples where the technology came into play. The machinery support center sensed that a compressor in one of Chevron’s Asian business units was experiencing valve failure. On-site inspection confirmed the problem and the valve got fixed. Another time, equipment at Chevron’s Sanha oil and natural gas field off the coast of Angola was showing an irregularity, which the team in Houston detected. A repair was made, and the company saved millions of dollars in potential damage and lost production.

Again, Chevron figures it already is saving in the millions of dollars and says that will become billions when the “i-field” and a general operational overhaul are fully implemented in four years. Efficiencies and savings, of course, mean innovating companies, like Chevron, can invest more in energy exploration and development, which is a good thing.

View the original article here

Innovation: Chevron’s ‘i-field’ Links Performance, Savings

USNews.com has a good read on Chevron’s digital investments, which the company says will save up to a billion dollars a year in operating costs in 2016. The linchpin is Chevron’s digital oil field, the “i-field,” which is short for “intelligent field.” USNews explains:

“Chevron's i-field harnesses advanced technology and communications to improve performance at 40 strategic assets throughout the world, including some of its biggest and most productive oil and gas fields. The company is rolling out six to eight mission-control centers focused on separate business areas, ranging from machinery to drilling to wells and reservoirs, that monitor those assets in real-time and rely on sophisticated computer algorithms for early detection of problems. From Chevron's perspective, the i-field is now essential to its global operations, which span six continents.”

Chevron isn’t the only company doing these things (USNews notes that Shell and ConocoPhillips have their own versions), but it is recognized as one of the oil and natural gas industry’s leaders. Basically, to overcome the global and labor-intensive characteristics of oil and gas development, Chevron has digitized a number of its operations. USNews:

“Chevron has deployed thousands of tiny sensors, only millimeters or centimeters in size, that monitor field operations and transmit data, both wired and wirelessly, back to central locations. The sensors instantaneously track pressure, temperature, and other readouts and aid with the mapping of underground fuel deposits, allowing the company to maximize production. Chevron also employs analytics to evaluate data streams in real-time from oil wells, drill rigs, ships, and elsewhere.”

The company has two mission-control facilities in Houston that oversee drilling and machinery support and two others in Lagos, Nigeria, and Covington, La., that monitor deepwater drilling. USNews:

“High above Houston in an office tower, a tech-savvy team at Chevron's machinery support hub monitors thousands of pieces of equipment, in real-time, across every continent except Antarctica. Using software to analyze data transmitted by sensors, it conducts ‘predictive intelligence’ to pinpoint when equipment, such as rotating devices called compressors, needs maintenance ‘so we can change out parts before they break down,’ [Chevron Energy Technology President Paul] Siegele says.”

USNews includes some examples where the technology came into play. The machinery support center sensed that a compressor in one of Chevron’s Asian business units was experiencing valve failure. On-site inspection confirmed the problem and the valve got fixed. Another time, equipment at Chevron’s Sanha oil and natural gas field off the coast of Angola was showing an irregularity, which the team in Houston detected. A repair was made, and the company saved millions of dollars in potential damage and lost production.

Again, Chevron figures it already is saving in the millions of dollars and says that will become billions when the “i-field” and a general operational overhaul are fully implemented in four years. Efficiencies and savings, of course, mean innovating companies, like Chevron, can invest more in energy exploration and development, which is a good thing.

View the original article here