Home' Trinidad and Tobago Guardian : February 12th 2015 Contents FEBRUARY 2015 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
The head of technology in the BP group,
David Eyton, has said that the use of advance
technology has added reserves to the com-
pany s acreage in the Columbus Basin and
helped it better understand the area. The
country s largest energy producer told the
recent Energy Conference at the Hyatt
Regency that the Ocean Cable Bottom Seismic Survey was
conducted over all of its major gas fields and prospective
acreage in the southern trend of the Columbus basin and the
aim was to ensure that the company can over the long haul
continue to produce at 400 thousand barrels of oil equiv-
Eyton said: "Over the period 2011 to 2014, BP conducted
the first commercial scale high definition ocean bottom seismic
campaign---covering a total area of 1,000 km2 with five survey
vessels---using BP s proprietary independent simultaneous
source technology (ISS). These tools improve our ability to
capture higher quality images of the subsurface, and enable
much faster data acquisition. This capability is of real value
in the Columbus basin, which is characterised by multiple
stacked gas-saturated sands which can distort sound waves."
He explained that BP is an industry leader in developing
new seismic technologies and its Trinidad business has been
one of our earliest adopters.
Eyton told the conference that by using ISS, the seismic
survey could be completed far more quickly than conventionally
acquired ocean bottom cable data. He said this technology
also delivered improved frequency content, fault delineation,
steep dip bed imaging and deeper signal penetration than
vintage streamer seismic operations.
"Interpretation of the dataset delivered has not only added
resources to existing fields but also helped to improve our
understanding of new fields like Angelin," he told the con-
Eyton said as BP looks forward there are opportunities for
further exploration in T&T. In addition, the company plans to
make greater use of greater use of new sources like 4D seismic
imaging coupled with in-well fibre-optics, and the use of inte-
gration engines across a wider array of subsurface data, all
enabled by ever-increasing computing power.
He said: "This will yield better static and dynamic descriptions
of complex reservoirs, such as those here, and hence better
operational management of them, in areas such as drilling and
completions, which is my next theme."
BP s head of technology added that subsea tie-back technology
plays a critical role in the North Sea, harvesting its resources
by aggregating smaller pools to make developments economic;
as in our recent Kinnoull field, tied into the redeveloped Andrew
platform and this is possible for T&T.
He said the company s analysis showed that the world is
not short of energy resources. There are abundant technical-
ly-accessible resources to meet global energy demand through
to 2050, albeit at a range of costs. In terms of oil and gas, there
are approximately 45 trillion barrels of originally in-place oil
and gas equivalent discovered. This, Mr Eyton added, is mostly
onshore, and 1.7 trillion boe have been produced to date.
"No major oil and gas technology breakthroughs are needed
to meet projected medium term demand. Using the best available
technologies today would significantly increase the world s
T&T s economy could face another hit if oil
prices were to fall to as low as US$20 a barrel
as is being predicted by one of the world s
largest financial institutions, Citigroup.
The company on Monday said that the recent uptake in
prices is nothing but a "head-fake," and oil as cheap as US$20
a barrel may soon be on the way. This as it lowered its forecast
Edward Morse, Citigroup s global head of commodity research,
said despite global declines in spending that have driven up
oil prices in recent weeks, oil production in the US is still ris-
"Brazil and Russia are pumping oil at record levels, and Saudi
Arabia, Iraq and Iran have been fighting to maintain their
market share by cutting prices to Asia. The market is over-
supplied, and storage tanks are topping out."
Both the Finance Minister Larry Howai and Central Bank
Governor Jwala Rambarran have tried to downplay the effect
of falling oil prices on the economy, arguing that T&T is a
natural gas based economy but since the fall in crude prices,
natural gas prices in Europe and the Far East---where a lot of
our natural gas is exported---have more than halved as gas in
those parts of the world are tied or indexed to oil prices. That
means as oil prices fall so, too, does LNG prices fall.
OPEC s January report found that while some drilling has
fallen off in the United States it does not expect lower oil prices
to fundamentally change the US energy matrix, with shale or
tight oil continuing to significantly boost US oil production.
In fact, the United States is now the second largest oil
producer in the world, only surpassed by Saudi Arabia.
OPEC noted that US onshore drilling activity in parts of
both emerging and mature oil production regions declined by
288 rigs from a peak of 1,551 in early October to 1,263 rigs in
January, because of unattractive economic returns but said this
is not impacting production..
"Although the heavy decline in total onshore rig counts
could impact production, two main factors prevent a tight
crude output drop. The first is an increase in the share of hor-
izontal well drilling compared with vertical and directional well
drilling employed in most plays sweet spots in the current
circumstances, while the second is the time lag between drilling
and well completion, which is at least a three-month period,"
according to the report.
This means that shale oil producers can drill and wait for
higher prices and quickly bring those wells into production
should prices become more attractive.
The OPEC report for January added that global oil demand
in 2015 is currently anticipated to rise by 1.17 mb/d; however,
developments need to be monitored closely, particularly following
the sharp drop in crude oil prices seen in recent months.
It said, "As prices drop, oil requirements are likely to respond
positively, although this can be impacted by other factors. For
example, in 2008, prices fell sharply starting in the summer
with the onset of the financial crisis and the global economic
recession, which also led to deterioration in demand. This time
the sharp fall in prices has been mainly driven by excess supply.
As a result, lower prices are likely to help to accelerate the pace
of oil demand growth this time."
Also, other factors can also impact the degree to which any
acceleration in demand takes place including the adoption of
energy policies and regulations.
"These factors tend to vary considerably from one economy
to another and, as a result, their impact will also differ. A
review of oil demand patterns going into 2015 bears this out.
Preliminary data for US oil demand shows a continuation of
the positive momentum started in fourth quarter 2014," the
report concluded. Energy Reporter
BP using new
technology in hunt
for T&T energy
BP's head of technology added that subsea tie-back technology plays
a critical role in the North Sea...as in our recent Kinnoull field, tied into
the redeveloped Andrew platform and this is possible for T&T.
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