Exploration and Production Under Deep Pressure

Deepwater is the fastest-growing sector of the world’s oil and gas supply.

With most of the world’s easy oil already under production, operators are moving farther and deeper offshore in search of new reserves. In 2000, the industry counted 44 deepwater fields. By 2012, there could be four times as many, and nearly 30 percent of the offshore industry’s expenditure will be for deepwater projects.

The expansion means that offshore oil production is increasing at twice the rate of onshore production. The world’s deepwater oil and gas fields are now delivering the energy equivalent of 6 million barrels of oil per day, and that should nearly double over the next four years.

The economic driver, of course, is the increasing demand for energy, but technology is what makes deepwater basins accessible. If companies didn’t explore some of their deeper offshore prospects a dozen years ago, it’s because they didn’t have the tools to reach them. Now they do.

Deepwater Canada

Traditionally, the Gulf of Mexico, Brazil, and West Africa were considered deepwater hotspots. However, recently, there has been an acceleration of activity in Australia, Malaysia, Indonesia, the Philippines and India.

Deepwater activities offshore Eastern Canada are still in their infancy. Despite depths of over 3000 feet, deepwater exploration and production in the area is predicted to increase. This new growth presents a shift in the set of technical challenges that must be met to ensure successful operations.

Deep water activities can bring with them some new environmental complexities: geologically speaking, these could include imaging and drilling challenges; characterization complexities like thin, laminated beds; and wellbore stability or geomechanics implications. Production challenges include difficult ocean currents and flow assurance issues. These challenges are made more complicated by the inevitably and increasingly remote field locations which magnify logistical constraints.

At What Cost?

The farther offshore and the deeper you go, the greater the financial risk. A single deepwater well in the North Atlantic can easily top $150 million (USD) to drill.

The same things that make deepwater drilling an expensive challenge apply to the logistics of manning the facilities, producing the oil and gas, piping or shipping it to shore, and safely disposing of any unwanted fluids that come from the wells. By the time you see the first dollar back from a deepwater field, you will have invested billions. Deepwater exploration and production is certainly a long-term investment. As such, any process or innovation that saves even an hour of time on every new well is a tremendous advantage.

Making Technology Accessible

Oil and gas companies are becoming increasingly committed to deepwater exploration as the race is on to explore new prospects, to drill and test wells, and to maintain production for the life of the field. Consequently, service companies are developing much of the advanced technology it takes to extend the reach. Schlumberger alone has 25 research and engineering facilities and has invested USD 818 million in R&D in 2008.

Transferring knowledge from the lab to the field as quickly as possible is a constant challenge. The same is true for sharing “best practices,” which are learned from experience. How, for example, do you let your engineers working offshore Canada know when you’ve discovered a new drilling technique that’s working well in the Gulf of Mexico?

One solution has been to establish dedicated technology centers around the world and to link them with research organizations. These links can be especially important when you consider that deepwater technology is not an isolated science; it draws on all of the other disciplines.

Encouraging Innovation

Deepwater technology, like every aspect of the petroleum industry, is changing at an unprecedented rate. Advanced tools allow effective drilling in water depths that were unthinkable a decade ago, but there’s much more to it than that.

Dedicated teams and the integration of proven technologies and work flow processes reduce the risks inherent in building and constructing deepwater wells. Predrill knowledge allows timely construction based on optimal parameters. Accurate while-drilling and survey data allow the operator to avoid drilling hazards and produce optimal boreholes to enable all subsequent operations. Reliable service quality, deepwater experience and expertise are key to placing the well on target in the fastest, most economical, and safest way possible, ready for casing and cementing.

Trained, experienced personnel improve operational efficiencies and reduce risk. To address the challenges of the deepwater environment, a new certification process ensures all Schlumberger employees assigned to a drilling project are deepwater trained. To qualify for the specialist deepwater certification, Schlumberger personnel undergo assessment in three key areas: experience with deepwater technologies, training on deepwater challenges, and proven competency in deepwater operations.