Journal of Petroleum Technology - August 2012

JOURNAL OF PETROLEUM TECHNOLOGY www.jptonline.
org
AUGUST 2012
Formation Evaluation
Subsea Technology
Health, Safety, Environment,
and Social Responsibility
FEATURES
BOPs: Trust but Verify

Methane Hydrate Success
Dual-Conduit Drillstring Innovation
CONTENTS
Volume 64 Number 8
20 GUEST EDITORIAL COLLABORATIONS CRITICAL ROLE

IN REACHING TOTAL DEPTH
As the growing global demand for energy forces operators to build
wellbores of increasing technical complexity and cost, writes Brent
Emerson, vice president of well construction products for Weatherford
International, the need for collaboration will become more critical.
38 YOUNG TECHNOLOGY SHOWCASE

New drilling technology allows fluid and cuttings from the bottom of the
well to return to the surface through the inside of the drillstring.
40 THE KEY WORDS FOR BLOWOUT PREVENTERS ARE

TRUST BUT VERIFY
The Macondo accident has spawned new expectations for blowout
preventers as well as design changes.
Cover: FMC Technologies Riserless Light

Well Intervention technology allows
subsea well maintenance to be carried
out from an intervention vessel instead
of a drilling rig. Art courtesy of FMC
Technologies.
50 PRODUCTION METHOD FOR METHANE HYDRATE SEES

SCIENTIFIC SUCCESS
A production method that could unlock large reserves of methane
hydrate in sand-dominated reservoirs was tested successfully from a
scientific and operational standpoint in a recent research experiment on
the Alaskan North Slope.
52 TALENT & TECHNOLOGY SOFT SKILLS COUNCIL:

A NEW SPE INITIATIVE
6
Performance Indices
10
Regional Update
12
Company News
14
Presidents Column
18
Comments
24
Technology Applications
28
Technology Update
128
People
130
SPE News
131
Professional Services
135
Advertisers Index
136
SPE Events
Printed in US. Copyright 2012, Society of Petroleum Engineers.
Goals of the newly formed SPE Soft Skills Council.
120 ANNUAL CONFERENCE FOCUSES ON UNCONVENTIONAL

WISDOM
A preview of the 2012 SPE Annual Technical Conference and Exhibition.
122 201213 SPE DISTINGUISHED LECTURER PROGRAM

Featuring 28 speakers from various disciplines and professions, the
201213 Distinguished Lecturer Program emphasizes current industry
trends, challenges, and technology through diverse topics.
An Official Publication of the Society of Petroleum Engineers.
TECHNOLOGY
56 Formation Evaluation
Bob Harrison, SPE, Global Technical Head of Reservoir Engineering,
Senergy Limited
57 Advances in Measuring Permeability Address Shortcomings of

Crushed-Rock Technique
62 Assessment of European Shale-Gas Play Takes Social Acceptance

IntoAccount
67 Application of Novel Technologies Helps Unlock Deep Omani Gas

70 Subsea Technology
Brian Skeels, Emerging Technology Manager, FMC Technologies
71 Deepwater Well Operations Could Benefit From Advances in Space

Robotics Technology
74 Separation Technology Shrinks to Fit Subsea Development in Deep

Water Better
82 Designing Retrieval System for Subsea Sensors Accounts for

Increased Numbers, Complexity
87 Autonomous Underwater Vehicles Ease Deepwater-Field Integrity

Management
90 Health, Safety, Environment, and

Social Responsibility
Emmanuel Garland, SPE, Special Advisor to the HSE Vice President,
Total Exploration and Production
91 Real-World Application of the Bow-Tie Method

95 Aging and Life Extension: KP4 Inspection ProgramThe First Year
99 Value of Dispersants for Offshore-Oil-Spill Response
103 Use of ROVs for Deepwater-Biodiversity Assessment: Case Study,
Offshore Nigeria
106 Social-Performance Indicators and Maintaining Corporate Social

Responsibility
109 Lessons Learned Following MacondoSafety Enhancement

113 Cross-Industry Hydrocarbon-Release Analysis
117 Key Elements of a Migrant-Worker Health and Welfare Program
The complete SPE technical papers featured in this issue are available
free to SPE members for two months at www.jptonline.org.
ONLINE
JPT ONLINE EXCLUSIVES
Search Continues for Cement of the Future
Exclusive coverage by JPT editorial staff of the 2012 SPE Deepwater and
Completions Conference in Galveston, Texas.
Below Average Atlantic Hurricane Season Is Predicted
A slightly below average hurricane season is forecast for the Atlantic basin this
year by Colorado State University.
Universal Rules for Oil, Gas Wells
Members of the Professional Petroleum Data Management Association are
developing a universal set of business rules for oil and gas wells.
NASA Training Lab Open to Oil, Gas Personnel
Raytheon Professional Services, Petrofac, and NASA have teamed up to train
offshore oil and gas personnel at the Lyndon B. Johnson Space Centers Neutral
Buoyancy Laboratory in Houston.
JPT
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PERFORMANCE INDICES
WORLD CRUDE OIL PRODUCTION+

THOUSAND BOPD
OP EC
2011 OCT
NOV
DEC
2012 JAN
FEB
MAR
Algeria
1540
1540
1540
1550
1550
1550
Angola
1790
1940
1890
1890
1940
1790
502
504
501
504
503
499
Iran
4000
4000
3950
3850
3800
3750
Iraq
2725
2725
2725
2675
2575
2725
Kuwait*
2600
2600
2600
2650
2650
2650
300
550
800
1000
1200
1350
Nigeria
2400
2500
2400
2500
2550
2500
Qatar
1300
1300
1300
1300
1300
1200
Saudi Arabia*
9540
9840
9840
9840
9840
10040
UAE
2720
2720
2820
2620
2620
2620
Venezuela
2240
2240
2240
2240
2240
2240
31657
32459
32606
32619
32768
32914
2011 OCT
NOV
DEC
2012 JAN
FEB
MAR
Argentina
611
609
602
589
588
589
Australia
365
385
382
340
322
363
Ecuador
Libya
TOTAL
THOUSAND BOPD
NON-OPEC
946
986
991
959
947
960
Brazil
2105
2188
2214
2231
2205
2085
Canada
3032
3022
3120
3189
3045
2877
China
Azerbaijan
3926
4006
3998
4089
4109
4066
Colombia
940
965
930
940
899
946
Denmark
217
211
185
197
219
204
Egypt
561
560
559
558
558
558
Eq. Guinea
270
307
315
314
313
312
Gabon
246
246
245
246
246
247
India
775
768
765
765
772
776
Indonesia
Kazakhstan
914
916
896
901
875
885
1515
1528
1519
1538
1535
1534
508
514
541
540
555
521
Mexico
2598
2573
2601
2562
2588
2596
Norway
1715
Malaysia
1756
1764
1713
1761
1745
Oman
899
871
900
894
862
908
Russia
9902
9595
9869
9894
9889
9891
Sudan
445
445
445
375
107
107
Syria
205
205
205
175
150
155
UK
USA
Vietnam
998
1039
1010
999
1016
968
5892
6012
6028
6124
6139
6260
321
353
346
348
336
333
170
160
155
160
115
115
2388
2418
2395
2396
2453
2449
Total
42505
42646
42929
43084
42588
42420
Total World
74162
75105
75535
75703
75356
75334
Yemen
Other
JPT AUGUST 2012
PERFORMANCE INDICES
US NATURAL GAS WELLHEAD PRICES
5
4
3
2
USD/Mcf
APR
MAR
FEB
2012
JAN
DEC
NOV
OCT
SEPT
AUG
JUL
2011
MAY
JUN
WORLD CRUDE OIL PRICES (USD/bbl)

116.97
97.3
110.22
2011 JUL
110.77
112.83
AUG
97.16
107.87
NOV
125.45
86.33
98.56
119.75
MAR
109.55
SEPT
110.69
DEC
106.16
85.52
OCT
100.27
119.33
2012 JAN
103.32
110.34
APR
86.32
102.20
FEB
94.65
95.16
MAY
82.30
JUN
Brent
WTI
WORLD ROTARY RIG COUNT

R EG I ON
2011
DEC
2012
JAN
FEB
MAR
APR
MAY
JUNE
US
2003
2003
1990
1979
1962
1977
1972
Canada
429
577
706
492
158
133
227
Latin America
438
420
439
438
423
457
435
Europe
112
108
120
109
118
118
115
Middle East
304
311
311
312
312
318
400
79
78
81
89
80
83
106
247
254
253
244
245
249
229
3612
3751
3900
3663
3298
3335
3484
Africa
Asia Pacific
TOTAL
WORLD OIL SUPPLY AND DEMAND 1

MILLION BOPD
Quarter
2011
2012
2 nd
3 rd
4th
1st
SUPPLY
86.07
86.85
88.55
89.09
DEMAND
86.99
88.68
88.31
88.21
INDICES KEY
Figures do not include NGLs and oil from nonconventional sources.

Includes approximately one-half of Neutral Zone production.
1 Includes crude oil, lease condensates, natural gas plant liquids, other hydrocarbons for refinery feedstocks, refinery
gains, alcohol, and liquids produced from nonconventional sources.
Source: Baker Hughes.
Source: US Dept. of Energy/Energy Information Admin.
JPT AUGUST 2012
REGIONAL UPDATE
AFRICA
Tullow Oils Paon-1X deepwater
exploration well, the first in the CI-103
license offshore Cte dIvoire, has
intersected good quality light oil in a
Turonian fan system. The well, drilled to a
final depth of 16,699 ft in water depths of
7,195 ft, encountered 102 ft of net oil pay in
a gross interval of 243 ft of turbidite sands.
Tullow (45%) operates the CI-103 license,
with Anadarko (40%) and the Societ
Nationale dOprations Ptrolires de
Cte DIvoire (Petroci) (15%).
Beach Energy commenced 2D seismic
acquisition over its Lake Tanganyika South
concession in Tanzania. The 2D seismic is
being undertaken by Fugro Oceansismica
and is expected to take around 2 months
to acquire and 7 months to process
andinterpret.
ASIA
Salamander Energy spudded the
Bualuang Far East-1 exploration well
in Block B8/38, Gulf of Thailand. The
Bualuang Far East prospect, located about
4 miles to the northeast of the Bualuang oil
field, will be drilled to a total vertical depth
of 4,765 ft subsea. The primary target is
the T5 Miocene sandstones with secondary
targets comprising an underlying Permianage Ratburi carbonate and a T4 Miocene
sandstone stratigraphic trap. Salamander
(100%) is operator.
Jubilant Energy spudded the KPL-B
well, the final of its seven-well Phase III
development drilling campaign in the
oil-producing onshore Kharsang field in
the Arunachal Pradesh state of India. The
main objective of the well, located in the
southern area of the field, is to appraise the
fields S-00 reservoir sands; a secondary
objective is to appraise the M-00 and T-00
sand layers. The Kharsang field is operated
by GeoEnpro (10%), with GeoPetrol (25%),
Jubilant Energy (Kharsang) (25%), and
OilIndia (40%).
AUSTRALIA
Senex Energy struck oil at its Cuisiner-5
well on PLA 303 on the Barta block
onshore Queensland. The well was drilled
to 5,745 ft, and oil was discovered in
10
the sands of the Murta formation over

the interval of 5,354 to 5,397 ft, with an
estimated net oil pay of 7 ft. Santos (60%)
is operator in ATP 752 B, with Bengal (25%)
and Senex (15%).
EUROPE
Xcite Energys 9/3b-7z well reached
target depth of 9,646 ft (measured depth)
in the Bentley field. Bentley is located on
Block 9/3b in License P.1078 in the UK
sector of the North Sea, situated 99 miles
east of the Shetland Islands in 371 ft of
water. Xcite (100%) operates the field.
Statoils Valemon development project

in the Norwegian North Sea has proceeded
with the delivery and installation of its
525-ft-high, 9,000-ton steel jacket. The
Valemon field is located directly between
the Shetland Islands and the Norwegian
west coast, some 6.5 miles west of the
Kvitebjrn field and 13 miles southeast
of Gullfaks. Statoil (53.775%) is operator,
with Petoro (30%), Centrica (13%), and
Enterprise Oil Norge (3.225%).
Oil production has started up from

the Athena field, situated on Block 14/18b
in the Outer Moray Firth area in the UK
sector of the North Sea. Initial peak gross
oil production rates of 22,000 BOPD
were reported. Ithaca Energy (22.5%)
is operator, with Dyas UK (47.5%), EWE
Energie (20%), and Zeus Petroleum (10%).
MIDDLE EAST
BP began drilling the first well in its
concession in the Risha natural gas field in
eastern Jordan, near the border with Iraq.
The drilling follows 2 years of preparation
and a 5000-km2 seismic acquisition
program in 2011. The well is expected to take
from 3 to 4 months to complete. In 2009,
BP was given up to 4 years to spend at least
USD 237 million to explore and evaluate the
Risha block, which covers 7000 km2.
NORTH AMERICA
BP commenced production from the
Galapagos developmentconsisting of the
Isabela, Santiago, and Santa Cruz fields
located in the Gulf of Mexico. The Galapagos
project includes the drilling and completion
of four wells connected via a flowline to
the BP-operated Na Kika host platform,
situated about 140 miles south of New
Orleans in 6,500 ft of water: two wells on
Isabela (67% BP), one well on Santiago, and
one well on Santa Cruz (both 46.5% BP).
The Na Kika facility has an output capacity
of 130,000BOPD and has been modified
to handle additional output from the fields.
Noble Energy, Red Willow Offshore,
and Houston Energy are co-owners in
Galapagos. BP operates Isabela, while Noble
operates Santiago and Santa Cruz.
Burleson Energy spudded the Truchard2H horizontal well in the Heintschel field,
Colorado County, Texas. The well is 2,575 ft
from the Truchard-D1 well, one of the three
producing wells on the Heintschel field
discovered by Burleson and its partners
in 2010. AKG (13.5%) is operator in the
Truchard-2H well, with Burleson (83.5%),
Omni Petroleum (1%), Dave Sylvan (1%),
and Elson Oil (1%).
SOUTH AMERICA
Petrobras found light crude oil (27API)
at Well 1-BRSA-1045-SPS located in the
southern portion of the Sapinhoa field
at a water depth of 7,222 ft. Petrobras
is currently drilling the well to a depth
of 16,590 ft to determine the reservoirs
lower limit. After drilling is completed, the
company plans to conduct a formation
test to determine the productivity of
the reservoir. The Sapinhoa (Guara) oil
discovery is located in the Santos basin
presalt offshore Brazil in Block BM-S-9.
Petrobras (45%) is operator, with BG Group
(30%) and Repsol(25%).
Americas Petrogas commenced drilling

China National Petroleum Corporation
(CNPC) said the first phase of Iraqs
Halfaya oil field, located east of Amarah,
has started operating at a production
capacity of 100,000 BOPD. CNPC (37.5%)
is operator, with Total (18.75%), Petronas
(18.75%), and Iraqs state-owned Missan Oil
Company (25%).
the La Hoya.x-1 (LHo.x-1) exploration well

in the Totoral block. The primary drilling
target is the Vaca Muerta shale. The Totoral
block consists of about 293,600 acres
and is located in the southern region of
Argentinas Neuquen basin. Americas
Petrogas (90%) is operator, with Gas y
Petroleo del Neuquen (10%). JPT
JPT AUGUST 2012
COMPANY NEWS
MERGERS AND ACQUISITIONS
CE Franklin will be bought by National
Oilwell Varco (NOV) for about CAD
233.08 million in cash. CE Franklins largest
shareholder, Schlumberger, has agreed to
vote for the buyout. The acquisition marks
the end of CE Franklins strategic review
process and effectively terminates the
shareholders rights plan it adopted in April.
provides blowout preventers (BOPs), BOP

control systems, choke and kill products,
high-pressure valves, diverter controls,
and deepwater multiplex controls for
onshore and offshore applications. Doyles,
headquartered in Houston, Texas, has
approximately 80 employees in the greater
Houston area, who are expected to be
retained as employees of APP.
A wholly owned US subsidiary of

Forestar Group will buy Credo
Petroleum for USD 146 million in cash,
more than doubling its proven oil and
natural gas reserves estimates. The
majority of Forestars revenue comes from
lease bonus payments and oil and gas
royalties from over 470 producing wells
owned and operated by third parties in
Texas and Louisiana. The deal is expected
to close in the second half of 2012.
TAM International opened its new

Canadian regional headquarters, housing
a manufacturing, service, and training
facility, in Calgary, Alberta. The new
24,000-ft2 facility will double TAMs
manufacturing capabilities and allow
the company to provide tool repair and
redressing services on a larger scale.
CONTRACTS AND TENDERS
Japans Osaka Gas will buy a 35%

nonoperated interest in Pearsall shale
acreage from Houston-based Cabot
Oil & Gas. Osaka will buy an interest
in about 50,000 net acres leased by
Cabot in Atascosa, Frio, La Salle, and
Zavalla counties, Texas. Osaka will pay
USD125million in cash to Cabot at closing
and an additional USD 125 million to carry
85% percent of Cabots share of future
drillingcosts.
SBM Offshore received a letter of
COMPANY MOVES
Weatherford International won
interim award (LOIA) from Shell for the

supply, lease, and operation of a floating,
production, storage, and offloading (FPSO)
vessel for the Fram field in the UK sector
of the North Sea. The LOIA allows SBM
Offshore to commence engineering and
procurement of long lead items to ensure
timely completion of the planned Fram
FPSO project, which is subject to a final
investment decision.
Rockwater Energy Solutions acquired

Southwest Proppants & Services (SWP)
and Silverline Transportation, oilfield
services companies headquartered in
Midland and Odessa, Texas, respectively.
SWP provides sand and proppant
brokering and logistics at multiple
locations across Texas, including rail
transloading and storage and unit train
processing capabilities. Silverline brings
to Rockwater 15 years experience in
proppant logistics in the oil field, a fleet of
assets, and a seasoned management team.
Norway-based Aker Solutions is

investing USD 100 million in a new drilling
equipment facility at Maca on Brazils
east coastabout eight times bigger than
Akers current facility, located nearby at
Rio das Ostras. The new Maca facility
will include about 20 000 m2 of indoor
mechanical workshop space for riser and
topside equipment, with full crane and
testing capabilities. The site will have
capacity for around 700 employees.
TGS-NOPEC Geophysical acquired

Calgary, Alberta-based Arcis Seismic
Solutions. The total equity value is
approximately USD 51 million, reflecting an
enterprise value of USD 72 million, based
on net debt at the date of acquisition. The
acquisition was consolidated into TGSs
accounts as of 1 July 2012.
Mexican billionaire Carlos Slim bought

an 8.4% stake in YPF, Argentinas biggest
oil and gas company. Slim acquired 6.59%
of YPFs stock, or almost 25.9 million Class
D shares, for USD 288 million, according
to a filing YPF sent to the local stock
exchange. He also acquired another 1.77%,
or almost 7 million shares, as part of
thedeal.
Axon Energy Products acquired the
assets and existing business of Doyles
Valves, through its subsidiary Axon
Pressure Products (APP). APP engineers,
manufactures, remanufactures, and
12
Expro opened a new operations base

in Paradise, Newfoundland. The custombuilt facility, in which Expro invested
USD 3.4 million, supports the delivery of
well testing, subsea, and downhole video
services for the region. Located in the new
Octagon Industrial Park, the facility houses
30 employees. The base covers a 2-acre
lot and includes a four-bay workshop with
8,400 ft2 of warehouse area and an office
annex with 6,000 ft2 of office space on
two levels.
a USD-843-million oilfield-facilities
contract from an Eni-led group that will
boost oil production from Iraqs Zubair
oil field by some 300,000 B/D. The
production facilities will enable the Eniled consortium to expand output from
Zubair about 2 years from the start of
work to 554,000B/D from its current
254,000B/D.
Norways Fred Olsen Energy awarded

Hyundai Heavy Industries an order,
estimated at USD 700 million, for the
building of a semisubmersible drilling rig
with scheduled delivery in March 2015.
Chevron awarded a 5-year contract

valued at more than USD 1.07 billion
for Pacific Drillings Pacific Sharay
ultradeepwater drillship, under
construction at Samsung Heavy Industries
in South Korea. Chevron will use the
drillship for its drilling operations in the
Gulf of Mexico following delivery from
Samsung in 4th-quarter 2013.
Variable Bore Rams, an original
Bergen Group Dreggen was awarded
equipment manufacturer of BOP

components and ram providers, added a
distribution center in Yoakum, Texas. The
center will offer a wide variety of BOP rams
and elastomers manufactured by Cameron,
Hydril, and Shaffer (NOV). The stock
includes, but is not limited to, variable bore,
dual bore, straight bore, multibore, dual
string shear, casing, and blind rams.
a new contract with the engineering,

procurement, and construction contractor
Techint Engenharia e Construo
in Brazil. The contract, with a value
estimated between USD 10 million and
USD 11.7million, comprises delivery of four
offshore lattice boom cranes for two fixed
wellhead platforms being constructed for
Brazilian firm OSX. JPT
JPT AUGUST 2012
SPECTRUM
SPE BOARD OF DIRECTORS

OFFICERS
2012 President
Ganesh Thakur
Chevron Energy Technology Company
Great Rewards
Ganesh Thakur, 2012 SPE President
2011 President
Alain Labastie, Total
2013 President
Egbert Imomoh, Afren
Vice President Finance
Kenneth E. Arnold
WorleyParsons
REGION DIRECTORS
As I approach the end of my term as SPE president, I reflect not

only on the past year but also on what led up to this wonderful
year. I think about how SPE has affected my life in so many ways,
all of which stem from three simple decisions.
First was my decision to join SPE. How do individuals
determine value, and why do they choose to belong to a professional organization such as SPE? For me, it was a natural decision. I would be working in one of the most important careers
in the world; in what other profession can you make a difference in the lives of millions of people every day? It logically followed that I wanted to be the best I could
in that career. I have always viewed SPE as the foremost professional association for
those working in oil and gas exploration and production (E&P). With its many technical resources (including its unrivaled collection of technical papers, its respected magazines and peer-reviewed journals, and its excellent conferences); the commitment
exemplified by its mission, vision, and values; and its ability to connect E&P professionals globally, SPE was the best association to help me achieve my goal.
Second was the decision to learn. Why do people seek continuing education, and
how can a membership organization such as SPE meet their needs? I took continuing
education courses to keep up with the advancements in technology and to continue to
sharpen my skills to become more productive and prolific in my work. I was privileged
to take SPE short courses taught by world-class professionals such as Dr. Aziz Odeh. I
kept learning more and more, especially early in my career. During 199091, I started to teach a course on integrated petroleum reservoir management with Dr. Abdus
Satter, and, later, we wrote a textbook on this subject that became popular in the industry and with many universities around the world. Although I learned a lot by taking
SPE short courses, I learned even more from teaching courses attended by some of the
best minds in our industry. I remember, for instance, a course in the 1990s that included Bob Schneider (he passed away a few years ago), retired from Shell, and W. John Lee,
a very distinguished professor from Texas A&M now at the University of Houston. This
was one of the best courses I have ever taught because we not only taught the course
but we also facilitated an enriched discussion that led to a superb learning experience
for all the participants, including me.
I strongly believe this is one area on which SPE can continue to focus more. I know
SPE has done a tremendous job in training and education this year. For example, now
we are offering 120 courses in 2012, a 200% increase over what we were doing just a
couple of years ago. I see even more growth opportunities in this area as membership
grows in developing countries and our responsibility to educate the young professionals takes a clearer path around the world.
Third was the decision to volunteer. Why do people give their time to their professional organization? For me, this decision was based on wanting to give back to an
organization that has given me a so much professional growth and experience. I feel
any professional should give something back to his or her organization or profession. I
AFRICA
Alek Musa, Total E&P Nigeria
CANADA
Keith MacLeod, Sproule Associates
EASTERN NORTH AMERICA
John Cramer, Superior Well Services
GULF COAST NORTH AMERICA
Sid Smith Jr., PolyFlow
MID-CONTINENT NORTH AMERICA
Mohan Kelkar, University of Tulsa
MIDDLE EAST
Hosnia Hashim, Kuwait Oil Company
NORTH SEA
Lon Beugelsdijk, Shell International E&P
NORTHERN ASIA PACIFIC
Yiaw Hin Wee, PETRONAS
ROCKY MOUNTAIN NORTH AMERICA
Arnis Judzis, Schlumberger
RUSSIA AND THE CASPIAN
Andrey Gladkov, Modeltech
SOUTH AMERICA AND CARIBBEAN
Nestor Saavedra, Ecopetrol ICP
SOUTH, CENTRAL, AND EAST EUROPE
Maurizio Rampoldi, Eni E&P
SOUTHERN ASIA PACIFIC
John Boardman, RISC
SOUTHWESTERN NORTH AMERICA
Peter Schrenkel, Vision Natural Resources
WESTERN NORTH AMERICA
Sam Sarem, Improved Petroleum
Recovery Consultants
TECHNICAL DIRECTORS
DRILLING AND COMPLETIONS
Joseph Ayoub, Schlumberger
HEALTH, SAFETY, SECURITY, ENVIRONMENT,
AND SOCIAL RESPONSIBILITY
Roland Moreau, ExxonMobil Upstream
Research Company
MANAGEMENT AND INFORMATION
Cindy Reece, ExxonMobil
PRODUCTION AND OPERATIONS
Ahmed Abou-Sayed, Advantek International
PROJECTS, FACILITIES, AND CONSTRUCTION
John Walsh, Shell Exploration & Production
RESERVOIR DESCRIPTION AND DYNAMICS
Gene Narahara, Chevron Energy
Technology Company
AT-LARGE DIRECTORS
Sudhir Vasudeva, Oil & Natural Gas Corporation
Mohammed Y. Al-Qahtani, Saudi Aramco
To contact the SPE President, email president@spe.org.
14
JPT AUGUST 2012
SPECTRUM
have been a member of SPE for more than
40 years. I have held all types of volunteer positions in SPE, including technical
reviewer and Distinguished Lecturer, and
served in all types of ways, including as
a technical director on the SPE International Board of Directors.
SPE members give their time to SPE
for many reasons, including
To learn new skills, hard and soft
To serve others
Because they believe in our
mission to collect, disseminate, and
exchange technical information
To stay engaged in their
profession and to network
To connect with their daily work
To help a cause that is important
to them, such as energy education
If members have a good volunteer
experience, they will keep coming back.
I am passionate about my work in
SPE and proud of all of our programs.
There are many I could speak eloquently
about that foster volunteerism and learning, but, today, I would like to briefly
touch on just a couple.
One inspiring example of the power
of volunteers and learning is the SPE
Research and Development (R&D) Technical Section. The section boasts more
than 650 members from 53 different
countries. The section arranges a number
of webinars that are open to all SPE members. In these webinars, two expert speakers give presentations on R&D needs,
opportunities, and projects associated
with a specific new technology or technical challenge facing the E&P industry
and then answer questions from listeners. Topics have included unconventional
resources, global energy economic perspectives, flow assurance, underground
carbon sequestration, human factors in
oilfield decision making, in-situ molecular manipulation, increasing recovery
factors, and higher resolution subsurface
imaging. Over the past 12 months, almost
700 people have attended these webinarsthats around 140 at each event.
Another example of volunteers in
the society coming together to make a
difference in the industry and the world,
beyond technical processes, is SPEs safe-
ty summit. The Human Factor, Process Safety, and Culture will address the
issues raised by the US National Commission on the Deepwater Horizon Oil Spill
and Offshore Drilling, which set out the
need for reforms to the oil and gas industrys safety culture. The summits goal is
to map out mechanisms and actions that
will accomplish this from organizational
and individual standpoints. It will focus
on how E&P professionals make use of
the information they receive during critical events and how this translates into
decisions that lead to specific actions.
This has been an exciting year. Id
like to end my last JPT column by thanking you all for the honor of serving as
your 2012 SPE president. It has been so
rewarding to give back to a society that
has given me so much. I am grateful to
be a part of SPE, not only for the professional advancements it has afforded
me but also for the relationships I have
developed, friends I have gained, and
the ability to call myself a member of
the SPE family. SPE has given me a lot of
professional growth and experience, and
accepting the role of the 2012 SPE president was one way to return the favor.
I would also like to send a message
to the young people in our industry and
to the students we hope will one day join
us. This is a rewarding profession that
gives you the opportunity to contribute
to the welfare of people everywhere, to
do exciting work with advanced technologies, to travel the world meeting
diverse people, and to make lifelong
friends. It is very satisfying when you
use technology and see the benefits and
the value that come from it in terms
of increased oil and gas recovery and
production or safer operations for your
company and for the industry. The outlook for this industry is bright for the
young professionals and students coming into our business. I would encourage
young professionals to become active
and take a leadership role. I also would
encourage college and high school students to join the petroleum industry
because this a very important industry
and it is going to be here for the next 50
years or evenmore. JPT
JPT AUGUST 2012
COMMENTS
EDITORIAL COMMITTEE
J.C. Cunha, Drilling Manager,
Ecopetrol America, Chairperson
Francisco J. Alhanati, Director E&P,
C-FER Technologies
Supply Growth
John Donnelly, JPT Editor
Syed Ali, Research Advisor, Schlumberger

Renzo Angeles,
Senior Research Engineer, ExxonMobil
Mohammed Azeemuddin, Research
Scientist-Rock Mechanics, Chevron
Baojun Bai, Associate Professor of
Petroleum Engineering, Missouri University
of Science and Technology
The growth in US oil production led by the rise in unconventional supply is well under way, and similar growth in other regions
could pave the way for great increases in global supply.
A new global field-by-field study of oil investment suggests that world oil production capacity could grow to more
than 110million BOPD by 2020, an increase of 20% from today.
Analysis of oil exploration and development projects around the
world indicates that more than 49 million BOPD in additional
production capacity could be gained by 2020. Taking into account risk factors and
depletion rates, net additional production capacity is likely to increase by more than
17 million BOPD by 2020, the most capacity growth since the 1980s. The figures come
from a report released in June by the Belfer Center for Science and International Affairs
at Harvard Kennedy School titled Oil: The Next Revolution. It was authored by Leonardo Maugeri, former ENI senior executive vice president of strategies anddevelopment.
Leading the way in this new surge of production, in order, are Iraq, the US, Canada, Brazil, and Venezuela. And much of the production is unconventionalshale/tight
oil in the US, pre-salt in Brazil, oil sands in Canada, and extra-heavy oil in Venezuela.
The study predicts that four current major producing areas will show declines during
the period: Norway, the UK, Iran, and Mexico.
Other conclusions of the study include:
The US will continue to see great gains in output from unconventional resources,
thanks to the technological revolution brought about by the combined use of horizontal drilling and hydraulic fracturing. The states of North Dakota and Texas will
see the largest growth in supply. These technologies used in shale also will be used
to reopen and recover oil from conventional, established fields. The United States
could increase oil production by 3.5 million BOPD making it the second largest oil
producer in the world after Saudi Arabia.
Oil prices could collapse when these large volumes of oil hit the market, contradicting conventional wisdom that global supply will struggle to keep up with world
demand. The report concludes that oil production capacity is growing so rapidly that
it might outpace consumption. The oil market will remain highly volatile until 2015
and prone to extreme movements in opposite directions. After 2015, however, most of
the oil projects analyzed in the report will advance significantly.
Shifts in the supply/demand balance will affect geopolitics. The US could be producing 65% of its oil consumption needs domestically, becoming less dependent on
Middle East countries. And while the US shale boom likely will not be easily replicated
elsewhere, development of known and unknown unconventional resources globally
could be surprising, says the report.
The increase in unconventional oil development will lead to heightened environmental protection and regulation challenges. Industry needs to develop technological solutions to minimize water use, minimize and report chemical use, and carefully
monitor production sites, says the report. If such a collective effort by industry does
not materialize, government may respond with more onerous regulation in the near
future that could impact US shale oil production. JPT
Ian G. Ball, Technology Director, INTECSEA UK

Luciane Bonet, Senior Reservoir Engineer,
Petrobras America
Paul D. Cameron, Senior Well Intervention Discipline
Advisor, BP Exploration
Robert B. Carpenter, Senior
AdvisorCementing, Chevron
Simon Chipperfield, Team Leader Central and
Amadeus Gas Exploitation Development, Santos
Gerald R. Coulter, President, Coulter Energy
Martin Crick, Chief Petroleum Engineer, Tullow Oil plc
Martyn J. Fear, General Manager Drilling
and Completion, Husky Energy
Emmanuel Garland, Special Advisor to the
HSE Vice President, Total ExplorationProduction
Robert Harrison, Global Technical Head of Reservoir
Engineering, Senergy Resources Ltd.
Delores J. Hinkle, Director, Corporate
Reserves, Marathon Oil
George W. Hobbs, Director, Strategic Chemistry
John Hudson, Senior Production Engineer, Shell
Gerd Kleemeyer, Head Integrated Geophysical
Services, Shell
Gregory Kubala, Global Chemistry
Mtier Manager, Schlumberger
Cam Matthews, Director, C-FER Technologies
Casey McDonough, Drilling Engineer,
Chesapeake Energy
Stephane Menand, Managing
Director, DrillScan US
John Misselbrook, Senior Advisor for Coiled Tubing,
Baker Hughes
Badrul H Mohamed Jan, Lecturer/Researcher,
University of Malaya
Alvaro F. Negrao, Senior Drilling Advisor,
Woodside Energy
Shauna G. Noonan, Staff Production
Engineer, ConocoPhillips
Karen Olson, Completion Expert,
Southwestern Energy
Michael L. Payne, Senior Advisor, BP
Mauricio P. Rebelo, Technical Services Manager,
Petrobras America Inc.
John D. Rogers, Vice President of Operations,
Fusion Petroleum Technologies
Regis K. Romeu, Petroleum Engineer, Petrobras
Jon Ruszka, Field Career Development Manager
(Africa), Baker Hughes
Hisham N. Saadawi, VP Engineering, Abu Dhabi
Jacques B. Salies, Drilling Manager,
Queiroz Galvo E&P
Helio Santos, President, Safekick
Luigi A. Saputelli, Production Modeling Advisor,
Frontender Corporation
Jerome J. Schubert, Associate Professor,
Texas A&M University
Brian Skeels, Emerging Technologies
Manager, FMC Technologies
Erik Vikane, Manager Petroleum Technology, Statoil
To contact JPTs editor, email jdonnelly@spe.org.
18
Scott Wilson, Senior Vice President, Ryder Scott
JPT AUGUST 2012
GUEST EDITORIAL
Collaborations Critical Role

in Reaching Total Depth
Brent Emerson, Vice President, Well Construction Products, Weatherford International
Brent Emerson is
vice president of
Well Construction
Products at
Weatherford
International.
He began his
career as a design engineer and has
held numerous positions throughout
his 24-year career in the oil and gas
industry. Emersons technical expertise
is in well construction, completions,
and workovers. He received a BS
degree in mechanical engineering
from the University of Texas at Austin
and an Executive Certificate in Global
Leadership from Thunderbird School
of Global Management inArizona.
20
Drillers around the world share a common goal: to get their well to its targeted
depth with the proper hole size such that reservoir contact and, ultimately production, are optimized.
However, given the diverse drilling environments that operators work in today
from reactive shales and tar zones to salt domes and depleted zones commingled with
high-pressure zonesthe challenges are as varied as each well drilled. How do we
safely reach total depth with the right hole size to ensure that kicks or losses are minimized and wellbore integrity is assured? And how do we achieve optimal efficiency to
avoid the time and money lost by drilling delays?
As exploration and production operators know, collaboration is key to success in
reaching total depthin particular, collaboration between the operator and an integrated service provider who brings complementary services and technologies to well
construction. The ultimate benefit of this collaborative approach can be fully realized
only if the service provider is involved as early as possible. Indeed, the contributions
made in the predrill planning stage can have a positive knock-on effect for subsequent
stagesfrom engineering to execution and, eventually, to operation. Everything the
operator and its service partners do ahead of the wells onset of production can bolster, or undermine, the long-term viability of a well.
So, what can an integrated service provider help deliver? Early collaboration helps
deliver on the promise of well integritythe concept of having no uncontrolled inflows
of drilling mud into the formation or outflows of formation fluid into the wellbore
throughout the life cycle of the well. Armed with an in-depth understanding of the
operators well integrity challenges, the service provider can help the operator determine the best way to run casing to depth, ensure high-integrity cementing, and achieve
proper zonal isolation to generate reliable and long-term production from thewell.
A close working relationship between operator and integrated service partner also
helps ensure drilling reliability, which is tied to having the right products and services
available that consistently deliver the well plan with a minimum of nonproductive time
(NPT). While much of todays drilling equipment is highly reliable, with an uptime of 98%
or more, the industry must develop even more reliable equipment. This is because of the
additive nature of equipment downtime in wells of increasing complexity, which lowers the reliability of the cumulative technology offering and increases NPT. Our industry
must continue to develop better equipment designs that push reliability gains rivaling the
electronics industry, that is, greater than 99%. And while next generation products may
cost more both in up-front research and development investments and price, they will
more than pay for themselves by boosting overall system reliability and lowering NPT.
Reliability is also about ensuring that the products and services are deployed in
the safest and most efficient manner, which comes down to training. A service provider should ensure that its workers are trained to competently and consistently deliver
these packages downhole. And once again, a close collaboration helps build competent teams that become educated together on how to best deploy equipment and build
greater working efficiencies with each successive drilling project.
An early partnership ultimately helps eliminate the risks, uncertainty, and
cost overruns inherent in a procurement-led drilling project, in which an operators
JPT AUGUST 2012
GUEST EDITORIAL
procurement group aims to achieve the
lowest overall capital cost for a project.
The goal is accomplished by choosing
the lowest cost provider for each of the
projects discrete services and tools.
Building a well in this manner lowers the likelihood that the operator has
the best overall technical solution for
its drilling operation, and puts greater
responsibility on its engineers to man-
22
age a myriad of logistics and deployment arrangements with different service providers. And unlike an integrated service provider, a group of different
providers with different agendas may
not work together toward the operators common well delivery goal. These
potential setbacks increase the risks
that the well will not reach its targeted
total depth.
Operators are increasingly seeing the

value of moving up the well construction
value chain, from securing discrete services to partnering with service providers
in some capacity. At each successive level
of partnershipin which service companies provide packaged services, individual hole sections, entire well solutions
or fully integrated projects for whole field
developmentthe level of collaboration
deepens. Increasingly, well construction
becomes an engineering-led endeavor, in
which the service provider gains a greater understanding of the operators goals
and views each well development with an
overall life-of-fieldperspective.
While the operator has to relinquish
some control and share more responsibilities with the service provider, it gains
a partner who is increasingly invested in
the success of the well with each move up
the value chain. In addition, the closer
the partnership and level of service offering provided, the more influence the provider has on lowering overall well construction costs.
The well engineering approach to
reaching total depth also allows for collaboration on hazard mitigation. Integrated service providers should have the
in-house expertise to collaborate with
engineers on the operator side to examine
the well data and identify any potential
wellbore hazards before the casing string
is run. This allows the appropriate hazard
mitigation contingencies, such as the use
of closed-loop drilling, solid expandables
or under-reamers, to be ready ahead of
time. The collaboration extends to data
management while drillingthe ability to accurately analyze real-time drilling data such that potential hazards are
identified as they arise. Armed with the
insight, the operator and service provider
can work together to decide on the mitigation strategy and when to deploy it.
As the growing global demand for
energy forces operators to build wellbores of increasing technical complexity and cost, the need for collaboration
will become more critical. Early collaboration can make wells previously considered undrillable a reality, while also
reducing time, cost, and risk in the reach
for total depth. JPT
JPT AUGUST 2012
TECHNOLOGY APPLICATIONS
Dennis Denney, JPT Senior Technology Editor
Fixed-Cutter Bit
Halliburton introduced its MegaForce
fixed-cutter drill bits (Fig. 1). Key technology innovations in cutting-structure
and matrix material, multilevel force
balancing, hydraulics, and shank length
deliver more than a 20% improvement
in rates of penetration (ROPs). Following each run during field trials, the bits
were graded equal to or sharper than
offset-well bits. The bit features advanced
SelectCutter polycrystalline-diamondcompact (PDC) technology, ultraefficient
cutter-layout force balancing, improved
erosion-resistant material, and enhanced
hydraulics. Designed for specific applications, the result is a matrix bit with a
combination of higher ROP and longer
intervals drilled. Enhanced hydraulics is
provided by the use of micronozzles to
improve the fluid flow across the cutting
structure. Advanced tungsten carbide
matrix material helps to reduce erosion
and wear on PDC-bit bodies. Multilevel force balancing increases bit stability
while drilling through transitions and
increases efficiency. The cutter technology improves cutter performance by
abrasion resistance, to ensure that cutters maintain a sharp edge by keeping
the diamond loss low. Impact resistance
keeps the cutter from failing because of
dynamic forces and vibrations under

normal drilling conditions. The Thermal
Mechanical Integrity works to remove
heat generated by friction to ensure that
the diamond-to-diamond bonds do not
break down.
For additional information, visit
www.halliburton.com/drillbits.
Precision Fluid Metering

For optimum monitoring of metering
systems, Lewa offers the LEWA smart
control. It compares the actuating variable of the metering pump (motor speed
or stroke length) and the measurement
signal from the flowmeter and checks
both values for plausibility. This comparison allows reliable identification of
deviations, ensuring high system availability. The system can even detect wear
in the metering pump. This control system regulates deviations very quickly, and the controller can access saved
pump-characteristic curves. The learning function, or adaptive control, ensures
fast adjustment of the actual value, without the significant transient fluctuations
produced by conventional proportional/integral/derivative (PID) controllers.
As seen in Fig. 2, at process startup, the
smart control enables the value adjustment to reach a maximum deviation of
1% after only approximately 30 seconds to maintain high product quality

even with pressure fluctuations in the
system. By means of up to four actuators, the controller regulates one or two
closed-control loops. Thereby, the operator can control either a redundant system
or two completely independent metering
systems with a single controller. The controller operates with almost every type of
metering pump and measuring system.
www.lewa.com.
Chromatograph Technology
The surface logging company Empirica, a
member of Reservoir Group, is launching
its Dual Flame-Ionized-Detection (Dual
FID) high-speed chromatograph technology. This gas-measurement system uses
high-speed chromatograph technology to obtain 36-second chromatograph
data, significantly faster than the current
industry average of 4565 seconds. This
high-speed FID has 100% resolution
between components. The high speed
results in more samples per foot at a fast
ROP and can help differentiate laminated
sands and low-resistivity pay, allowing
operators to make quickerdecisions.
www.empirica-logging.com.
Actual Value Metered Flow
Input of Desired Value
Time, seconds
Desired value
Fig. 1Halliburtons MegaForce

fixed-cutter drill bit.
24
Actual value,
PID controller
Actual value,
smart control
Fig. 2A LEWA smart-control valve adjustment compared with that of

a PID controller.
JPT AUGUST 2012
Fig. 4Weatherfords Red Eye

subsea water-cut meter.
Fig. 3T.D. Williamsons Subsea 1200RC Tapping Machine.
Subsea Tapping Machine

T.D. Williamson announced deployment
of its Subsea 1200RC Tapping Machine
(Fig. 3), a compact remotely controlled
subsea hot-tapping machine. The system enables hot tapping to be carried out
from the safety of a diving-support vessel (DSV) or platform. Subsea hot tapping of pipelines is performed for tie-ins,
pipeline repair, inserting instrumentation, facilitating chemical injection, or
providing access for temporary-isolation
tools. The full process involves installing the hot-tap assembly, performing the
tap, and recovering the hot-tap machine.
Whereas diver operations are limited to
a maximum water depth of 300 m, much
existing subsea field infrastructure is in
water depths to 3000 m. Although installation of the hot-tap assembly and subsequent removal of the machine will require
JPT AUGUST 2012
diver assistance when a preinstalled tee

does not exist, performing the tap itself
is remotely controlled by a technician
onboard the DSV or platform. The system
is a stationary remotely operated vehicle
with its hydraulics and control system
attached to the tapping machine, and it is
operated from an onboard laptop. Builtin sensors allow continuous recording of
actual pressures, temperatures, rotation,
and movement of the pilot drill and cutter. The laptop-based program facilitates
control remotely rather than relying on
the divers manual handling of the cutting process.
www.tdwilliamson.com.
Subsea Water-Cut Meter

Water onset and measurement are critical for subsea wells because of water
productions role in flow assurance and

overall reservoir health. Weatherfords
Red Eye subsea water-cut meter (Fig. 4)
is a standalone device capable of operating in this demanding environment on
all multiphase well streams. The meter is
designed for pressures up to 15,000 psi
and temperatures up to 250F, while supporting Subsea Instrumentation Interface Standardisation (SIIS) Level 2
and SIIS Level 3 communications. The
meter operates on the principle of nearinfrared absorption, in which water is
more than 100,000 times more absorbent than the other pipeline constituents
at select wavelength bands. This contributes to very sensitive water detection that is independent of salinity such
that no corrections are necessary. It provides accurate measurements from 0 to
100% water-cut levels and can handle up
to 99.5% gas volume fractions. Also, the
meter can measure water/methanol (or
other typical hydrate inhibitor) concentrations in addition to water cut. This tool
is especially for individual-well measure-
25
TECHNOLOGY APPLICATIONS
Fig. 5Superior Energy Services

OmniFrac MST ball-actuated
fracturing sleeves.
Fig. 6Aquatechs SMARTMOD modular evaporator.
ment or as a replacement for subsea multiphase meters when water measurement

has become the prime consideration.
the casing is run with fracturing sleeves,

openhole-isolation packers, and a permanent hanger packer. A ball is circulated to the toe of the system where the
isolation valve is closed, allowing pressure to build up internally, which sets
all of the packers simultaneously. At this
point, the work string and liner-running
tool are removed from the well and the
drilling rig is released to prepare for the
complete fracturing treatment.
For additional information, email

po-info@weatherford.com.
Multistage Fracturing System

Superior Energy Services Completion
Services Division introduced its OmniFrac MST (Multistage Single Trip) fracturing system. The system is an openhole multistage completion system
designed for land-based completions
in unconventional tight-sand, shale,
and carbonate reservoirs. The system
includes a ball-actuated isolation valve,
pressure-actuated fracturing sleeve,
ball-actuated fracturing sleeves (Fig. 5)
with balls made of high-strength materials, single-element openhole-isolation
packers with metal-element support
and an interlock device that prevents
the packer from being set while going
in the hole, and a permanent hydraulically set hanger packer with hydraulic
running-tool release. This system eliminates need for cementing. After drilling
the well to total depth, a set of reamers/mills is run to condition the openhole section for liner installation. Then,
26
For additional information, email

info@superiorenergy.com.
rator weight, the system module and

vessels eliminate the need for building
a large evaporator building or foundation (Fig. 6). In steam-assisted gravitydrainage oil-recovery technology, the
liquid that is pumped to the surface is
a mixture of oil and water. The mixture
is separated to predominantly oil and
water fractions in the deoiling process.
The water fraction (or produced water)
can be sent through this system for treatment and reuse in the facility.
www.aquatech.com.
Modular Evaporator
Aquatech introduced its SMARTMOD
modular-evaporator technology for
the oil-sands market. Modular, flexible, and redeployable, the system uses
a vertical-tube falling-film evaporator
design for treating difficult producedwater sources. This system has 10%
lower power consumption than conventional evaporator systems. Its multiplesection design ensures American Society
of Mechanical Engineers distillate quality, and online washing allows continuous
distillate production at more than 70%
of design capacity during washing. With
its reduced center of mass and evapo-
Completion and
Stimulation Design
Schlumberger released its Mangrove
reservoir-centric stimulation-design
software that enables better decision
making for well-completion and fracturing programs. Developed on the companys Petrel E&P software platform, the
stimulation-design software provides
access to the shared-Earth model to
facilitate program designs for all types
of reservoirs. The reservoir-centric
stimulation-design software offers the
Completion Advisor for perforation
picking and staging that leverages accu-
JPT AUGUST 2012
rate reservoir definition and includes

predictive complex-hydraulic-fracture
and conventional-planar-fracture models (Fig. 7). Measurements and information including seismic, geological, geomechanical, and microseismic data can
be integrated with a reservoir simulator through the Petrel platform to provide an integrated seismic-to-simulation
workflow. This design-software methodology has been used to optimize completion designs in the Marcellus shale in
North America, eliminating screenouts
and increasing production by more
than 50% from one well. The workflow enabled the customer to engineer
customized perforation and staging
designs instead of geometric perforation
designs, thereby enhancing stimulation
coverage and flow rates.JPT
Fig. 7Schlumbergers Mangrove reservoir-centric stimulation-design
software.

www.slb.com/mangrove.
TECHNOLOGY UPDATE
Advanced Desander Removes Solids

Without Deferring Well Production
Colin Sherwood, Stork Technical Services
As oil and gas fields mature, production

of sand and other reservoir solids can
become an increasing and sometimes
major impediment to hydrocarbon production and facility operations. These solids can move through the wellbore into
process facilities, causing flow assurance
problems that affect system integrity,
export line transportation, cleaning, and
disposal. As operators seek to optimize
production from mature assets, solids
management is likely to take on additional
importance. Sand and solids production
can also be a problem on some new wells.
To address these issues, Stork Technical Services developed an advanced
online desander (AOD) for managing separator solids, providing thermographic
determination of sand accumulation, and
enabling clean sand discharge to the sea,
with no deferred production (Fig. 1). The
system has been used successfully in eight
deployments on the Hummingbird floating production, storage, and offloading
system (FPSO), which supports Centricas
Chestnut field, operated by Wood Group,
in the United Kingdom North Sea.
Risks of Sand in
Production Vessels
The presence of sand in production vessels reduces capacity and affects separation performance, which leads to deteriorating produced water quality and the
carry-over of water in the oil phase. If not
controlled, the sand can cause a separator to be taken offline and manually
cleaned. This exposes facility crew members to process hazards and may damage
downstream equipment.
Conventional sand management
techniques require a shutdown of 10 to
14 days for manual sand removal, result- Fig. 1The advanced online desanding system.
28
JPT AUGUST 2012
TECHNOLOGY UPDATE
(a)
(b)
Fig. 2a) A sample of oil-contaminated sand before cleaning and b) a sample of cleaned sand ready for
overboard disposal.
ing in a significant delay and additional

expense. Following this, oil-on-sand discharge rules may limit disposal options
and compel storage of some or all of
thesand.
30
The Online Desanding

Technology
The desander is designed to allow more
operator uptime and to reduce costs,
compared with traditional vessel entry
cleanout methods. With the new technology, there is no need to shut down
production, and the elimination of manual cleaning improves safety. In addition, the technology enables operators
to change their approach to planned
shutdown periods. Because the system
allows a high degree of cleaning to take
place before shutdown, the team of technical experts needed for a shutdown can
be smaller and planning for it simpler.
The system comprises a number of
purpose-designed, integrated components including solids extraction, solids separation, and solids conditioning packages. A high-flow jetting unit
with a recovered-liquid package recycles the separator water. The system complies with European Union
hazardous area safety requirements
and can be used in Zone 2 hazardous
offshoreenvironments.
The technology deploys jetting
heads into vessels accurately and safely,
while collecting the recovered material
into process facilities in an internationally standardized container that includes a
wash tank, a high-flow centrifugal pump,
and an inbuilt access. All of the components operate from a single 63A electrical socket. The produced solids are
washed, checked, and quantified before
overboard discharge. With the assistance
of the Macaulay Institute in Aberdeen,
a system of field analysis kits was devel-
JPT AUGUST 2012
oped to verify overboard discharges for

contamination levels in real time.
With the designs modular concept,
the existing wash tanks could be used
with a separation package equipped to
precondition the slurry stream. A coarse
spin filter on the skid inlet handles
sand bursts from the point of startup,
significantly reducing the risk of blockage. The sand jetting nozzle is deployed
by means of a solids extraction ram with
rotational drive to facilitate sand recovery from the productionseparators.
A system of controls and process
interlocks ensures that equipment operation poses minimal risk to workers and
the installation. Verification studies,
including a full hazardous operations
analysis, were conducted in the development stage, with the support of independent engineering authorities and client
process engineers.
The systems mobility enables sand
production problems to be handled cost
effectively because there is no need to
design or make specialist hardware or
shut down the process for installation.
The package is connected through the
separator drain valves, which has minimal effect on the platform infrastructure.
Thermographic imaging is used to monitor sand levels before, during, and after
desanding. Removal of the accumulated
solids restores performance efficiency
to the separator and allows increased
throughput, while the extracted oil is
returned to the process through the platforms hazardous drainage system.
The recovered material is subsequently removed and treated in situ with
no need for onshore transportation or
storage reinjection. The portable analysis
kit enables onboard, real-time testing of
treated sand, followed by overboard disposal where permitted.
Operators are only able to discard
untreated material overboard if the
level of contamination is within limits
of best environmental practice. The system guarantees that discharge is washed
to below 1% oil on sand, well within
the UK Department of Energy and Climate Change (DECC) and United States
Environmental Protection Agency guide-
JPT AUGUST 2012
lines. Meeting this level is vital when

applying for discharge licenses. Figs. 2a
and 2b show sand samples before and
aftercleaning.
The Technology in Operation

The system was used in eight deployments on the Hummingbird FPSO. A
well was producing sand to the FPSOs
first-stage separator, posing a risk to
production rates if it could not be managed. The operator considered three
options: corrective well intervention
measures, reduced oil production to
restrict sand intake, or online desanding at regular intervals. The third method was chosen.
Over the eight deployments, beginning in 2009, 58 tonnes of sand were
removed from the separator while it
remained online. There was no disruption to production or ongoing operations. Each deployment was completed
without harm to people or the environment. All sand was washed to below
1% oil on sand, consistent with DECC
discharge requirements. Recent discharges to the sea have averaged 0.07%
(700 ppm) oil on sand, which is below
the 1% target figure. Removal of the sand
also allowed some separator instrumentation problems to be resolved. Further
deployments are planned this year as
production optimization takes place.
Conclusion
The AOD provides a cost-effective, environmentally compliant means of removing sand from production streams in
small field operations. While many separator vessels have inbuilt desanding systems, they are prone to blocking, expensive to retrofit, and require the vessel
to be taken offline in the event of failure. The AOD can be easily deployed by
connecting to existing drains, removing accumulated material, extracting oil
from the sand, and allowing the recovered oil to be returned to the process
through the platforms hazardous drainage system. Most significantly, the technology reduces the crew size for shutdown periods, thus simplifying the
planning process.JPT
TECHNOLOGY UPDATE
Multidomain Data and Modeling Unlock

Unconventional Reservoir Challenges
Utpal Ganguly and Craig Cipolla, Schlumberger
Completion strategy and hydraulic fracture stimulation are important keys to

economic success in low-permeability
and unconventional reservoirs such as
tight sand and shale. Therefore, engineering workflows in unconventional reservoirs need to focus on completion and stimulation optimization, just as
they do well placement and spacing.
The primary obstacles associated
with optimizing completions in these res-
ervoirs have been the absence of hydraulic fracture models that properly simulate the complex fracture propagation
common in many reservoirs, the lack
of efficient methods to create discrete
reservoir simulation grids to rigorously model hydrocarbon production from
complex hydraulic fractures, the lack of
automated fracture treatment staging
algorithms, and the lack of ability to efficiently integrate microseismic mapping
measurements with geological and geophysical data.

This article details a novel approach
for enabling efficient multistage completions, new complex fracture models,
unstructured gridding-based reservoir
simulation, and a comprehensive integrated workflow developed within single reservoir-centric stimulation design
software. Though primarily focused on
unconventional reservoirs, this efficient full-cycle seismic-to-simulation
workflow is applicable also for conventionalreservoirs.
Seismic-to-Simulation
Through Stimulation
Static reservoir modeling
Geomechanical
modeling
Integrated
Reservoir-centric
Workflow
Completion
design
Production
forecasting
Stimulation
design
Microseismic
mapping
Fig. 1The integrated reservoir-centric workflow enables seismic-tosimulation through stimulation.
32
In recent years, an increasing amount

of hydrocarbons in North America
have been produced from unconventional reservoirs, with a similar trend
expected worldwide. The International
Energy Agency projects the hydrocarbon reserves in unconventional reservoirs to be as high as 8 trillion BOE.
Most of these low-permeability reservoirs must be hydraulically fractured
to produce. In unconventional reservoirs, stimulation is the key step in the
seismic-to-simulationworkflow.
For unconventional reservoirs,
detailed reservoir characterization plays
a fundamental role in completion design,
affecting the staging strategy, location
of perforations or fracture ports, and
stimulation design. Properly modeling
the interaction of induced fractures with
the rock fabric and coupling the hydraulic fracture geometry and conductivity
with subsequent well performance is an
essential element in this comprehensive
workflow. The unconventional reservoir
simulations include a detailed geologic
JPT AUGUST 2012
Well No. 2
25
Perf Cluster
Perf Cluster
Well No. 1
36
31
26
21
16
11
6
1
21
17
13
9
5
1
0%
10%
20%
30%
40%
50%
0%
5%
10%
% from Perf Cluster
20%
Well No. 4
Well No. 3
29
29
25
25
21
21
Perf Cluster
Perf Cluster
15%
% from Perf Cluster
17
13
9
17
13
9
5
5
1
1
0%
5%
10%
15%
20%
25%
30%
0%
2%
4%
6%
8%
10%
12%
14%
% from Perf Cluster
% from Perf Cluster
Fig. 2Production logs from four horizontal wells indicate uneven performance from each perforation cluster.
Many perforation clusters are not producing gas, while a few clusters dominate most of the production.
description. The modeling is focused on

the well and the specifics of the completion (i.e., the hydraulic fracture treatments). In contrast, this information can
be significantly scaled up for conventional reservoirs, shifting the focus to largescale reservoir behavior (i.e., multiwell
and full-field simulation models).
Thus far, the oil and gas industry has lacked software that can enable
such -seismic-through-stimulation-tosimulation workflows. The recent introduction of such software has enabled the
integration of specialized completion
algorithms with fit-for-purpose hydraulic
fracture models and related workflows,
using detailed reservoir characterization
data critical for unconventional reservoirs (Fig. 1). The completion workflow
leverages a platform that enables cross
validation with an Earth model developed
with seismic-derived structural information; petrophysical information from
logs, cores, and rock cuttings; and geomechanical data.
The capability of building multidomain and multisource cross-validated
Earth models is leveraged to account for
JPT AUGUST 2012
heterogeneity that can affect completion

and stimulation significantly in unconventional reservoirs. The completion
and stimulation models can be calibrated using microseismic measurements in
the context of local geology and structure. This new completion solution is
constructed to generate unstructured
grids efficiently to represent the complex
fractures in reservoir simulation models. The following sections highlight this
software, which has enabled running a
comprehensive single-well-optimization
workflow in hours.
Completion Advisor
The vast majority of unconventional
reservoirs in North America are developed using horizontal wells with multiple hydraulic fracture treatments. This
approach maximizes reservoir contact
and minimizes the surface footprint.
These completions typically consist of 10
to 20 propped fracture treatment stages,
with each stage containing two to eight
perforation clusters designed to promote
multiple fracture initiation points. Until
recently, questions such as how many
fracture treatment stages and perforation clusters are optimal, what is the
ideal spacing between perforation clusters, and where is the best location for
each fracture treatment stage have challenged completion engineers working
in unconventional reservoirs. Optimizing the number and location of fracture
treatment stages has been primarily a
manual, time-intensive process, resulting
in a cookie-cutter approach that does not
properly account for vertical and lateral
heterogeneity. Because the industry practice of geometric staging and perforation
cluster placement so far has ignored the
variability of rock properties along the
wellbore, results from a study including production logs from 100 horizontal
wells showed an enormous discrepancy in production between the perforation clusters that is likely because of rock
heterogeneity. Fig. 2 presents examples
from four wells that are representative of
the observedphenomenon.
One important component of well
performance is identifying zones of best
reservoir quality and completion quality (Fig. 3). To design perforation-cluster
33
TECHNOLOGY UPDATE
Completion Quality
+
Reservoir Quality
Composite
Score
Stress legend
High
Low
Rock quality legend

Name
Hydraulic fracturing stages
Color
Good CQ & Good RQ

Bad CQ & Bad RQ
Good CQ & Bad RQ
Bad CQ & Good RQ
Rock quality
Stress
Fig. 3An automated approach to completion design is based on

reservoir and completion quality.
placements in each stage, reservoir quality and completion quality are evaluated
to find the best locations along the lateral. Reservoir quality implies the rocks
ability to contribute to the production,
while completion quality is a measure of
rocks tendency to yield under increased
pressure during hydraulic fracturing. The
rock parameters that define each of these
qualities can be selected in the new Completion Advisor, a software with the ability to assign proportionate weighting to
eachparameter.
The staging algorithm for horizontal wells first evaluates the variability
of reservoir properties and completion
properties separately. Properties such as
water saturation, intrinsic permeability,
and total organic carbon will be considered as reservoir quality, while mineralogical properties such as clay and silica
content, in-situ stress, Poissons ratio,
and Youngs modulus (E) will be considered as the completion quality. The vari-
34
ability of these properties is separately

considered and discriminated for desired
values using specific cutoff criteria. The
reservoir quality and completion quality
derived from this exercise is assigned a
binary designation of good (G) or bad (B)
quality blocks, where bad is a relative
term for rock that may still produce but
is of poor quality. A composite score is
derived by combining both of these qualities that can have one of the following
four values: GG, GB, BG, or BB. Note that
the wellbore is automatically segmented
depending on the variability range of the
parameters that constitute the two qualities. Different and more relevant cutoffs
are applied within each of the segments.
This ranking of rocks along the wellbore provides a convenient way to automatically assign numbers of and locations
of perforations as well as group similar rocks together in individual stages.
The Completion Advisor, however, also
acknowledges practical concerns, such as
perforation spacing, to account for stress

shadow effect, limited entry to ensure
even distribution of pumping fluids, and
start/end perforation-cluster spacing
between stages.
During the automated completion
design, the software also takes into consideration the structural constraints,
such as proximity of natural fractures to
perforations or faults, and operational
constraints, such as stage length, based
on achievable rate with available hydraulic horsepower. With this novel solution,
the entire process is executed in minutes
or hours instead of weeks or months.
The consistent step-by-step engineering
approach and efficiency lends itself to
multiple-scenario analysis and helps in
making decisions that are no longer stochastic. A similar but separate advisor
is also available for vertical wells in differentially depleted lenticular tight sand
formations. This approach provides a rigorous and repeatable solution for optimizing staging and perforation design
while also rationalizing the value of the
logmeasurements.
Complex Fracture Modeling

and Calibration
Once the completion strategy (i.e., determination of fracture treatment staging, location of perforation clusters, and
number of perforations in each cluster)
is finalized, fracture treatments must be
designed for each stage. Understanding hydraulic fracture complexity can
be a critical component in the economic development of many unconventional
resources. One important component in
the quest to understand hydraulic fracture complexity that has been missing
is the ability to model fracture propagation in complex geological environments
in which the interaction of the hydraulic
fracture with natural fractures or fissures
is likely to result in complexity.
Models of complex fracture networks require a more complete description of the stress field than that required
by simple models of vertical planar fractures. The other primary factors controlling hydraulic fracture complexity are
the distribution and properties of natural
JPT AUGUST 2012
TECHNOLOGY UPDATE
Fig. 4Hydraulic fracture geometry calibration uses microseismic measurements.
fractures and the stress regime. Natural

fracture description is typically derived
from borehole image logs, seismic interpretations, outcrops, or cores and is represented as a discrete fracture network
with seismic data-based propagation.
The discrete fracture network is also correlated with curvature, azimuthal variation for orientation, and density.
The complex fracture network

is strongly influenced by the interaction between the hydraulic fracture and
the pre-existing natural fractures. The
Unconventional Fracture Model (UFM),
within the reservoir-centric stimulation
design software is the industrys first
solution that explains the complex fracture patterns created with induced and
Pressure (psi)
Pressure (PRESSURE)
3750
3500
3250
3000
2750
2500
2250
2000
1750
1500
1250
natural fracture interaction and has sufficiently efficient run time for daily use.
In the heart of the UFM is a criterion
developed to determine whether a fracture crosses a frictional interface (preexisting fracture) at different angles
and principle horizontal stress differences. This criterion has been validated using laboratory experiments with
excellentagreement.
In unconventional reservoirs such
as shale, hydraulic fracture growth can
be very complex. The UFM provides the
unique ability to adequately capture the
interaction between the hydraulic fracture and natural fractures. While the new
software solution provides the much
needed 3D visualization of hydraulic fracture in full reservoir context, it can also
generate maps to show the footprint of
different proppants pumped during the
treatment, plots to capture total fractured
surface area created over time, and the
effect of stress shadow in both the intrastage and interstage. The UFM, however,
needs to be validated in these complex
environments using microseismic measurement data (Fig.4). The single canvas
concept is leveraged to overlay processed
microseismic data on model-generated
fracture geometry and the workflow to
perform model calibration.
Reservoir Simulation
Fig. 5This pressure depletion plot corresponds to a complex fracture

model.
36
Optimizing well spacing, well placement,

and fracture treatment design efficiently
requires seamless integration with production modeling. Thus far, representing complex fractures accurately and
effectively to properly evaluate the effect
JPT AUGUST 2012
of hydraulic fractures in unconventional

reservoirs has been a challenge. Hydraulic fracture treatment design requires
reliable production forecasts to evaluate
the effect of treatment parameters on
well performance (e.g., proppant type,
size, and amount; fluid type and volume;
and injection rate). Discrete gridding
of the hydraulic fracture in a numerical
reservoir simulation model is the most
robust and flexible approach but can be
time-consuming and cumbersome if the
process is not automated.
Automated gridding of multiple
planar hydraulic fractures in horizontal
wells has been possible for many years,
but the application of these integrated
approaches has been limited. Coupling
complex hydraulic fracture models with
reservoir simulation using algorithms
that automatically develop discrete reservoir simulation grids to rigorously
model the hydrocarbon production from
complex hydraulic fractures completes
the seismic-to-simulation workflow for
unconventionalreservoirs.
As with hydraulic fracture models,
the reservoir simulation models need
to be calibrated using actual production
data to ensure the production forecasts
are reliable. This calibration process
is intimately linked to understanding
hydraulic fracture performancespecifically fracture conductivity, effective
fracture surface area, and stimulated
volume (Fig. 5).
hydraulic fracture geometries is seamlessly coupled with a reservoir simulator, allowing efficient fracture treatment optimization and field planning.
Finally, the software solution enables
the seismic-to-stimulation-to-simulation
workflow that is necessary for single-well
optimization in unconventional environ-
ments in a single platform. This eliminates the need to move data from one
application to another, address data formatting issues, learn multiple and various software tools, and address problems
at the interface that can easily become a
bottleneck for asset teams operating in
unconventionalenvironments. JPT
Conclusion
In this article, we have discussed the
deployment of a unique, reservoircentric stimulation design software that
offers several previously unavailable
components. The Completion Advisor
enables the connection between data
and information by linking measurements to actual stage and perforation
design decisions through an efficient
yet rigorous engineering approach. The
complex hydraulic fracture simulation
model captures the physics of hydraulic/natural fracture interactions and is
efficient enough for day-to-day fracture
design and production evaluation. The
automated grid generation for complex
JPT AUGUST 2012
37
YOUNG TECHNOLOGY SHOWCASE
Reelwell Drilling Method Makes

Use of Dual-Conduit Drillstring
The Reelwell drilling method (RDM) is
a drilling solution using a unique flow
arrangement. RDM employs drillpipe
where an inner string is installed to
form a dual-conduit drillstring. This
allows the fluid and cuttings from the
bottom of the well to return to the surface through the inside of the drillstring. RDM enables improved hole
cleaning, reduced possibility for washouts, and improved downhole pressure
control. RDM has unique features for
managed-pressure drilling (MPD) and
extended-reach drilling (ERD). A special feature of RDM is that it allows MPD
and underbalanced operations (UBO)
to be performed with a heavy fluid in
the well annulus by means of the Reelwell multigradient system. This implies
that MPD and UBO can be performed
with two well barriers and, thus, improved safety.
RDM started its development in
2004 and has been through several fullscale tests. In 2009, the system was used
for the first time for directional drilling
with MPD in a land well in Norway. In
2010, RDM was used for the first time
in a live shale gas well in Canada. These
operations have validated RDM and its
features and are important steps proving
its potential.
Arrangements and
Rig Description
Fig. 1 presents a schematic of the system. The system is based on a dual-channel drillstring, where one flow path is
used to convey the drilling fluid into the
well down to the bit and the other channel is used for the return fluid from the
bottom of the well. This arrangement
implies a modification of the drilling
fluid flowarrangement.
38
The following special tools and

arrangements are used.
Dual Drillstring (DDS). The DDS can be
manufactured in various sizes; the current size used consists of 6-in. drillpipe adapted with 3.5-in. inner pipe that
has been fitted with stab-in innerstring
connectors. The DDS is handled on the
rig floor as conventional drillpipe.
Topdrive Adapter (TDA). A dual-conduit
swivel connects the rigs topdrive unit to
the dual drillstring and enables rotation
of the drillstring by the top drive. The
TDA is connected to the surface flow control unit through an additional separate
stand pipe and mud hose.
Flow Control Unit (FCU). The FCU is
a control valve arrangement equipped
with pressure and flow sensors and permits accurate control of the in/out flow
in the RDM system. The control unit
connects to all the flow paths of the system, as shown in Fig. 1.
Dual-Float Valve (DFV). The DFV is a
device located at the bottom of the DDS.
The DFV includes a flow cross-over from
the well annulus into the return channel of the DDS. The DFV incorporates
valves that isolate the drillstring from
the well during connections. In the failsafe default position, the DFV closes
both channels of the DDS. A conventional BHA is made up below the DFV.
Piston. The piston is an optional tool
inserted into the drillstring that can prevent loss of the fluid from the well annulus and provide a downhole hydraulic
force to the drillstring. The piston is
designed to slide inside casing. It allows
drillpipe rotation and can isolate the well

annulus outside the dual drillstring. The
piston is arranged to allow bypass flow
upward in the well annulus but allows
the pressurization of the well annulus
between the sliding piston and the rotary control device (RCD) to generate additional weight on bit when required.
Drilling Rig Adaptations

The following rig adaptations are
required for RDM operations:
A second stand pipe and corresponding hose must be added for
the return flow from the TDA.
The TDA must be fitted with an
antirotation device connected to
the topdrive.
The FCU must be positioned at a
suitable place and connected for
remote operation from a console
in the drillers cabin.
An RCD must be installed on the
top of the blowout preventer to
ensure that backpressure can
be maintained in the well while
rotating the drillpipe.
The RDM can be used in combination with a conventional bottomhole
assembly (BHA) attached below the DFV.
The BHA should be adapted for reduced
flow when using the RDM. This includes
the downhole motor, MWD mud pulser,
and drill-bit nozzles.
Installation and Operation

After implementing the rig adaptations,
pressure testing is required before start.
All personnel involved in the operation
need up-front training on the special procedures and drilling practices, with special attention to well-control procedures
and contingency scenarios. The dual
drillpipes are handled in the same man-
JPT AUGUST 2012
Topdrive
Mud supply
Topdrive adapter (TDA)

Dual drillstring (DDS)
Flow control unit (FCU)

Mud return
Rotary control device (RCD)

Blowout preventer (BOP)
Piston
Dual-float valve
Fig. 1Schematic of the equipment arrangement for the RDM.

ner as conventional drillpipe; however,
special attention and inspection must be
performed on the inner pipe joints and
the inner pipe sealing.
The RDM system can be used after
installing and cementing the surface
casing. The 6-in. DDS can enter hole
sizes of 8.5 in. and larger. Smaller hole
sizes can be drilled with a tapered string
arrangement. The smallest piston size
for the current arrangement is for 9-in.
casing. The system has proven capable
of drilling and building up to 9/30 m for
8-in. hole.
It is possible to quickly switch from
RDM to conventional drilling by removing the TDA and DFV from the DDS. In this
case, the valves at the FCU are arranged
for conventional circulation. The DDS can
also be used for conventional drilling,
pumping down both channels, and taking the returns through the well annulus.
Multigradient System
After tripping in and before drilling a
new section, the RDM allows the circu-
JPT AUGUST 2012
lation of an active drilling fluid with different fluid properties, compared with
the passive drilling fluid in the well annulus, which is not in the active circulation
path. Thus, it allows use of a heavy fluid
in the well annulus and a light active fluid
circulated inside the drillstring. In the
latter case, the piston can be used as a
fluid partition unit to prevent the two fluids from mixing. The annular well fluid
can be the same fluid as is inside the well
when tripping in, or it may be displaced
into the well annulus before drilling. The
fluid in the well annulus can be replaced
by pumping the fluid down the DDS and
opening for the return through the well
annulus, rather than through the return
conduit of the DDS.
Results
The full-scale drilling trials have shown
RDM to be efficient, providing comparable rate-of-penetration values to conventional drilling. Efficient hole cleaning was
seen as large concentrations of cuttings
arrived at the shale shakers shortly after
drilling startup. The transport time for

the cuttings from the bottom of the well
to the surface was recorded as approximately 5 min/km measured depth.
The results also indicate larger cuttings size distribution compared with
conventional drilling. The reason for this
seems to be because the cuttings travel
quickly to the surface and avoid being
milled into smaller particles between the
rotating drillpipe and the borehole wall.
Operations have mainly been performed with the same fluid in the well
annulus as inside the drillstring; however, a heavier drilling fluid was used in the
well annulus in one trial run. A significantly reduced well annulus surface pressure below the RCD was then observed
during the MPD operation.
Experience from the operations performed to date has resulted in improvements and optimization of the tools performance and reliability. The equipment
has been through a design revision and
testing, and plans exist for it to be used
in operations soon. JPT
39
THE KEYWORDS FOR BLOWOUT PREVENTERS ARE
Trust but Verify

Stephen Rassenfoss, JPT Emerging Technology Editor
GE Oil & Gas displayed its new blind-shear ram, which is capable of
cutting components older blowout preventers could not, at the 2012
Offshore Technology Conference. Brett Coomer / Houston Chronicle
40
JPT AUGUST 2012
lowout preventers (BOPs) have become a constant

concern. Periodic certifications of the equipment and
maintenance used to be enough to ensure that this last line of
defense would perform if needed. Now, users are constantly
wanting to know, is it ready? said Chuck Chauviere, the
general manager for drilling systems for GE Oil & Gas.
The question can be asked many ways. Is the BOP
capable of cutting the pipe or connectors and sealing
a blowout? Are the electrical and hydraulics systems
working properly? Is the crew trained to quickly make
the right decisions in an emergency? Will backup
power and communications systems perform under
extremecircumstances?
Much has changed in the 2 years since the Macondo
disaster in which 11 people died; but, the process is far from
over. A rewrite of the American Petroleum Institute (API)
guidelines for BOP operations and maintenance, API 53:
Recommended Practices for Blowout Prevention Equipment
Systems for Drilling Wells, was going through another round
of revisions in mid-summer and could be published late in the
year, said Roland Goodman, manager of upstream standards
at API. The guidelines provide details needed to make changes
in the sections of API 16 that cover BOP construction,
testing, andrecertification.
In May, the Bureau of Safety and Environmental
Enforcement (BSEE) kicked off a push to write the first
US BOP regulation with a hearing in Washington. Industry
representatives got a taste of what is ahead when David
Hayes, deputy secretary of the US Department of the Interior,
said, There are at least four things we are looking for in a
new proposed rule:
One, BOPs need to be able to cut whatever is in their way
and completely seal off the well.
No. 2, better maintenance for BOPs, like what you would
expect of a jet engine or any other very sophisticated
mechanical device upon which lives depend.
No. 3, BOPs need better sensors to tell us what is
happening at the bottom of the sea.
No. 4, everyone working with BOPs should be fully and
properly trained to handle any contingency.
One thing that stood out was the regulators focus on
shearing whatever was in the BOP. Tom Hunter, chairman of
the US Interior Departments Ocean Energy Safety Advisory
Committee, summed it up by saying BOPs need to be shear
certain. For someone who has spent many months crafting
measurable BOP performance guidelines for engineers, the
catch phrase was both ambitious andambiguous.
What is shear certain? How do we arrive at it, and
what are the criteria? said Frank Gallander, chairman of the
API subcommittee that rewrote API 53, who spoke on one of
the panels at the all-day BSEE meeting.
Based on comments made that day, shear certain
sounded like the ability of a BOP to cut any part of a
drillstring. If that is the ideal, it is missing the reality that
JPT AUGUST 2012
many BOPs in service are unable to cut certain drilling

components, such as connectors, drill bits, and stabilizers.
Gallander, a subsea well intervention specialist for
Chevron, pointed out that the industry is seeking new
methods to reach that goal, including research into shearing
with lasers or explosives. There have been promising
results, but developing and testing a new technology is time
consuming with no guarantee ofsuccess.
They have put it to us as an industry. We look at
that asa challenge and will do what we can do to meet it,
Gallander said.
The industry is also responding in other ways, including
moving to two shear rams per deepwater well and building
an industry database of BOP and tubular test information to
better gauge the capabilities of shearingrams.
The regulatory agenda echoed themes in the report
from the National Academy of Engineering Macondo WellDeepwater Horizon Blowout on the causes of and lessons
learned from Macondo. One of its authors, Roger McCarthy,
a consulting engineer with a long career investigating highprofile disasters, said government standards are needed to
drive spending on things that do not add reserves or increase
production. If you look at energy spending on new technology
that aids production, it is dramatic, McCarthy said. But there
has not been a parallel investment there onreliability.
Given all the criticism and calls for change,
McCarthy said he would not have been surprised to see
some resistance; but, they took it rather well, all things
considered, and said, Tell us what we need to do, he said.
New and Improved
BOP makers have begun rolling out new products with the
added muscle required to meet Goal 1 for shearing rams
exert enough force to cut whatever is inside it based on
the maximum strength of the drillstring components. The
latest shearing technology from Cameron, GE Oil & Gas, and
National Oilwell Varco (NOV) were on display at the 2012
Offshore Technology Conference (OTC).
Cameron showed a large unit created for an ultrahighpressure shallow-water gas development rated for 25,000
psi, far beyond the 15,000-psi limit for most such equipment.
GE Oil & Gas introduced an improved blind-shear ram
design that applies the force more effectively, allowing
it to sever thick connectors that could not be severed by
pastmodels.
NOV has been selling its low-shear ram designed to
reduce the force needed for shearing by first puncturing the
pipe. The blade has a hump in the middle able to punch a hole
in a pipe, setting up the massive structural failure required
for shearing.
Both the GE and NOV designs have improved
mechanisms to push the pipe toward the center of the cavity
for a cleaner cut. That feature became a concern after the
post-disaster analysis of the Deepwater Horizons BOP
41
TRUST BUT VERIFY
Speaking of
Blowout
Preventers
The following are comments
made during the hearing
on blowout preventer
(BOP) regulation held by
the Bureau of Safety and
Environmental Enforcement
(BSEE) in May.
One, it would be 100%

available
at all times. Two, it
would be totally controllable
at any time. Three, it would
be completely diagnosable.
Four would be what I would
call shear certainif you
need to clear the way, you can
clear the way. Next, no matter
what has happened, there
needs to be a mechanism
where you can provide a
sheared closure. Last
maybe most important for
industry colleaguesthese
blowout preventers need to
be obtainable. They cannot
just be complex drawings and
lines. They need to be built.
Tom Hunter,
chairman of the Ocean Energy
Safety Advisory Committee, on
suggested BOP design principles
42
Forensic Examination of Deepwater

Horizon Blowout Preventer by Det
Norsk Veritas (DNV)concluded that
the BOP failed to cut because the
pipehadbuckled, moving it out of the
zone where the blades were able to
shear it.
BOP makers were also showing
ways to track the machines status,
showing if the rams in a BOP are open,
closed, or somewhere in between.
Two programs now allow quick
monitoring of key BOP components
using displays with green, yellow, and
red lights. The programs were designed
to make decision makers aware of
the health of the well-control system
and help them decide if any problems
justifyaction.
Measuring Up to the Task
The introduction of new, more capable
equipment is not a cure-all in an
industry with a large, long-lasting
fleet of BOPs that have their limits.
New shearing-ram designs from GE
and NOV are said to be able to cut
connectors that could not be severed
by oldermodels.
To compensate for those limits,
the revised API 53 calls for an estimate
of the force that shearing rams are
capable of exerting and the pressure
needed to cut a drilling component. It
advises that shearing should require
not more than 90% of the BOPs
maximum operating pressure.
The section on shearing pressure
evaluation said, Any identified risks
shall be mitigated and/or managed
through the development of specific
guidelines, operational procedures, and
a thorough risk assessment.
The goal of the process is to
ensure thorough consideration of
whether the BOP is suited for the
well to be drilled and that procedures
are in place to ensure a blowout can
bestopped.
We are saying understand
the limits and capabilities of the
system, said Gallander, chairman of
the API 53 subcommittee. Everyone
involved needs to understand the risk
and be prepared. That is the most

importantthing.
Drillers will also be required
to deploy two blind-shear rams
to increase the reliability of the
system bydoubling the chances for
successfully shearing and sealing
a well. After Macondo, Shell and
BP required two blind-shear rams
on eachwell, which has become
increasingly common.
The result is taller stacks of BOPs.
While the API rule is likely to push the
common practice from four BOPs to
five, stacks seven units tall or more are
not uncommon.
All these factors, plus the many
new drilling rigs on order worldwide,
are increasing demand for new
BOPs, said Dan Church, president
of the Axon Pressure Products
manufacturing division of Axon
Energy Products. Another driver for
demand is that some older BOPs are
being forced out of service because
they lack the documentation required
forrecertification.
For BOP makers, though, the
forces driving up demand also have
a down side. The Macondo disaster
highlighted the legal hazards that
come with making a critical piece of
safety equipment. While regulators
are asking for improved BOPs, the
uncertainty created by the prospect
of a new regulation complicates new
productintroductions.
GEs new shear ram was tested
using the API 16A qualification process
for shear rams with the input of a
user group. The API is revising that
standard, while regulators are drafting
rules with input from advisors such
as McCarthy, who is an advocate for a
new generation of testing equipment
capable of realistically simulating a
high-pressure deepwater blowout.
When asked about whether it is
developing new testing methods, the
company responded, GE continues
to monitor and respond to the
directions provided by the regulators
around the design and verification of
thisequipment.
JPT AUGUST 2012
The fluid state of the rules weighs

on the marketplace. No one wants to
place an order with a long lead time for
a major piece of equipment that could
be made obsolete by new regulations
before it is delivered or be the first
customer for a new generation of
untried equipment.
We are waiting for the rules
to manifest themselves, said
Moe Plaisance, vice president for
governmental and industry affairs at
Diamond Offshore Drilling. What are
the international jurisdictions going to
do, and what are the operators going
to want, and what are our customers
going to want?
Open, Closed, or What?
After the destruction of the
DeepwaterHorizon, a top priority
wasstopping the oil flow by closing
the BOP. But the team of experts
frominside and outside BP had little
togo on.
I cannot tell you how difficult,
if not impossible, that was to figure
out, said Tom Hunter, former head of
the Sandia National Laboratories, who
was among the many technical experts
called in to offer advice.
We spent countless hours trying
to understand what was happening
with this system and never had more
than anything but a guess. It was not
a self-revealing system, said Hunter,
now chairman of the Ocean Energy
Safety Advisory Committee.
He recounted that experience
during the May BSEE hearing while
making the case that BOPs need
to be equipped with better realtime monitoring of such things as
pressure, temperature, and what
is flowing through them and be
able to continue reporting even in
extreme circumstances. Pressure and
temperature monitors are common
enough inside oil wells. Building ones
rugged enough to withstand a blowout
and still deliver good data, however, is
a tall order.
BOP makers are working with
industry groups and regulators to
JPT AUGUST 2012
figure out what added data would prove

useful, said Chauviere of GE, who added
that the company has some ideas on
how to best do that.
One example is a device offered
by GE that reports on the location of
the piston and the force that can be
exerted by it. The standard BOP uses
the volume of fluid inside the piston to
tell if it is open or closed.
In the past year, GE has been
selling a sensor that can show an
operator on a drilling rig the current
location of each ram. The company
went beyond simply observing if the
BOP piston was open or closed because,
Chauviere said, there is increased
interest in knowing its exact position.
Cameron displayed models at OTC
with dial indicators that allow video
cameras on remotely operated vehicles
to record piston positions.
Adding sensors to BOPs comes
with engineering challenges. For
example, sensors capable of checking
the condition of critical metal
components using ultrasound have
been around since the 1970s. They are
commonly used on structures, such
as pressure vessels, that do not have
the background noise experienced at a
wellhead during drilling.
This type of sensor probably
works better on structures like a
bridge than on a component that is
moving and shaking and going through
thermal cycling, said Michael Creech,
chief operating officer in the industry
division at Bureau Veritas. Creech, who
has a background in nondestructive
testing, said advances in signal
processing technology able to filter out
more of the ambient sound offer the
hope this approach could be used near
awellhead.
I can stand up here and say,

from
a personal and from
the company point of view at
Diamond Offshore, you want
to be part of a solution and do
what is best for our country,
our people, and for the
world. We are active all over
the world. Whatever comes
about here will influence what
happens there.
Moe Plaisance,
vice president at
Diamond Offshore
We had a lot of questions.

First
of all, do the data and
the drawings we have match
the system undersea?
Secondly, what are the
positions of the rams? Are
they closed or open? Are the
locks set? What, if anything,
is inside the bore? Are there
any flow restrictions? Is it
stable? Is it going to tip over?
Lastly, what is the flow going
through the bore and closed
rams. I cannot tell you how
difficult, if not impossible,
that was to figure that out.
David Hayes,
deputy secretary for the US
Department of the Interior,
on trying to analyze the
Deepwater Horizon BOP
Doubling Up
Taller BOP stacks and stepped-up
maintenance standards are changing
how offshore rigs are equipped and how
drilling is managed.
Some rigs are now equipped with
a spare BOP stack to allow them to
move from well to well without delays
43
TRUST BUT VERIFY
At the end of the day,

engineers
designing BOPs
have to be given specific
performance metrics. We can
only talk in generalities for
solong.
Jose Gutierrez,
director of technology and
innovation at Transocean,
on regulation
things are going

toIfbethese
expected to work
under conditions where
all hell is breaking loose,
they have to be tested in
conditions that simulate
all hell breaking loose. I
recognize, and we recognize,
thats neither cheap nor
easy. The consequences
of not doing this testing
have to beweighed against
failing tooperate under very
difficultconditions.
Roger McCarthy,
an independent consulting
engineer and a member
of the National Academy
of Engineering panel that
reported on lessons
learned from Macondo,
on BOP regulation
44
that could cost upward of USD 1 million

a day.
We feel we need the flexibility
to avoid costly breaks in drilling, said
Plaisance of Diamond Offshore. When
a BOP comes up after it has been on the
bottom for 200 to 300 days, it requires
quite a bit of time to inspect and rehab
it and make sure it is ready to go again.
The demand for doubles has
grown to the point where GE created an
interchangeable connection allowing
quick change outs of BOP stacks. But
many older rigs industrywide are not
high enough to move the tallest stack,
much less transport two of them. And
offshore repairs can be impossible
on the crowded deck of a drilling rig.
Another option tried is keeping a spare
on shore, but delivering something so
large on short notice has problems of
its own.
Ever larger BOP systems
add options for drillers, but that is
only a positive if the person at the
controls makes the right decisions in
situations that are life-threatening and
complicated. The DNV examination of
the Deepwater Horizons BOP offered
the theory, which was challenged by
attorneys for BP and Cameron, that the
pipe buckled because it was locked in
place by rams sealing the annular space
above and was pushed upward by the
high-pressure flow from the well.
In the APIs revised BOP
operations standard, an example
showed the force required to shear
a pipe is higher if the annular BOP
above has been closed, increasing the
pressure. It also covers in what order
shearing rams should be fired when two
are available.
Following the lead of aviation,
where pilots are assisted by automated
systems programmed to avert
potentially disastrous conditions, the
industry is talking about computeraided BOP controls.
We are considering increased
automation, said Ken Dupal, well
delivery manager for process safety
implementation on deepwater wells
at Shell. The company wants to make
sure the best decisions

are made
The blades of GE Oil & Gas new

blind-shear ram are designed
to apply force and shear more
effectively.
when most every scenario has
unique characteristics that require
interpreting data and making decisions
based on that interpretation.
The focus on regular, welldocumented pressure tests on ever
more complicated BOP systems has
aided the rapid growth of the BOP
pressure testing system created by
IPT Global. In about a year, Suretec
software, which promises faster
more accurate tests with easier
scheduling, has replaced older testing
methods on 25 offshore rigs drilling
for Chevron, Shell, ExxonMobil, Statoil,
and Petrobras, and it had orders for
10 more, said Mark Franklin, president
of IPT. It is installing servers on rigs
that can archive tests and move data
to users over the Internet, and it plans
to open a central monitoring center
inAugust.
Adding Artificial Intelligence
BOP designs reflect the enormous cost
of shutting down drilling for repairs.
Multiple systems back up critical
JPT AUGUST 2012
functions. Workstations used to control

and diagnose what goes on inside
BOPs offer pages of data on the health
of a BOP. Still, it can be difficult to
determine if a warning light represents
something that could compromise
performance or vibrations nearby
that are not a problem. Even when one
component goes out, there are multiple
backup systems to consider and some
components are far more critical
thanothers.
For software makers, this looks
like an opportunity. Lloyds Register
Group has adapted software widely
used to make maintenance decisions
at nuclear power plants to help
make decisions on whether a BOP
requireswork.
A late summer test is planned of
the RiskSpectrum software, said Inge
Alme, technical director for ScandPower,
the subsidiary of Lloyds Register that
created the program. When monitoring
a BOP, the program requires a detailed
description of the components in that
unit and how they interact so it has the
information needed to advise if an issue
is pressing or not.
The systems analysis software,
which is used in about half of all
nuclear power plants worldwide, has
allowed the plants to reduce accidents
and downtime, Alme said. But, in the
nuclear industry, as with oil and gas,
major events define its public image
more than long-term operational
improvements do.
My view of oil and gas is there
is pretty good risk analysis during
the design phase. They are not as
good in the operations phase, said
Alme, who hopes this software
will someday become an industry
standard for modeling risk in a wide
range of offshore exploration and
productionapplications.
To make it easy to interpret the
results, the RiskSpectrum program
JPT AUGUST 2012
uses a display with red, yellow, and

green lights to indicate the status
of each key component. The threelight display is also part of the BOP
monitoring program rolled out this
summer by NOV with an assist
from BP.
A major goal is creating more
awareness of the condition of the BOP
and interaction. The system is one of
NOVs eHawk diagnostic services, which
monitor critical rig hardware such
as top drives and mud pumps. It also
records and analyzes the data-seeking
patterns that suggest problems
arelikely.
The system can be accessed
by decision makers with a secure
Internet connection. The goal is
to make everything available to
everyone, said Ashe Menon, director
of equipment optimization in NOVs Rig
Solutionsunit.
Both programs are designed
to seek out patterns in the data in
search of ways to reduce time lost
to unplanned maintenance and to
improveperformance.
Menon said that, if an indicator
light turns redwhich he likened to a
warning light on a car dashboardthe
subsea engineer responsible for the
BOP would need to figure out what,
if anything, is wrong using the BOP
workstation. The goal of the dashboard
is to create a constant awareness of
the BOPs readiness
It is a communication tool, not a
diagnostic tool, said Jim McKay, a BP
drilling engineer who was involved in
developing and testing the NOV system.
For subsea engineers, one side effect
of this sort of monitoring is the feeling
there is someone looking over my
shoulder, McKay said.
Given the importance of ensuring
BOPs are ready, McKay predicted,
This kind of thing is coming in
ourindustry.JPT
all agreed that, when

weWecame
to an impasse, life
and the environment will
takeprecedence.
Frank Gallander,
chairman of the
subcommittee that
revised API 53, on how
the committee resolved
disputed issues
There has to be a
continuous
learning process
on this as well. We need to
come up with a robust system
by which we register not only
the failures, which we typically
see, but we need to register
the near misses and we need
to register the successes.
When does this work when we
ask it to work? Lets start a
database on all of this so we
can collect this information
and understand. Just exactly
how successful are we with
the use of BOPs?
Bruce Levity,
director of risk
management solutions for
Det Norske Veritas North
America, on industrywide BOP performance
measurement
45
TRUST BUT VERIFY
is shearing an actual
toolThisjoint.
This used to be
considered unshearable;
but, with this new device,
we are able to cut and seal
tool joints. We are improving
the capabilities of the
equipment.
Chuck Chauviere,
general manager for drilling
systems for GE Oil & Gas,
narrating a video of a test
ofthe companys new
blind-shear ram
fifth column raises sort

ofThe
an interesting question:
What is the expected life
for some of these valves?
There is not a lot of real
good information out there.
We have a placeholder.
As this kind of information
is gathered, the industry
needs to correlate that with
maintenance (records) and
actually have a better idea as
to what the expected life is of
these components.
Frank Chapman,
president of Ashford
Technical Services, on
observations by the
companys monitoring
system
46
Worries About Well Control

Open the Way for New Ideas
he future of blowout preventer

(BOP) technology is defined by
obstacles, such as pipe connectors
with steel walls 3 in. thick. While BOP
makers are rolling out new models
that apply more hydraulic force to
shear pipes, others are seeking ways
to blast through them using explosives
andlasers.
Shell has created two devices
it hopes to commercialize using
carefullycalibrated explosive charges
one to seal off a well deep in the ground
and another to quickly cut through
pipe above the BOP to allow a drillship
to make a quick exit, said Curtis Wilie,
technology deliverymanager for
deepwater wells for Shell.
The list of well-control technology
developments offered in a speech by
Paul Siegele, president of Chevron
Energy Technology, ranged from the
exotictesting lasers for emergency
pipe shearingto the pragmatic
expanding the use of acoustic
emergency communications to the Gulf
of Mexico. Backup communications
using sound waves sent through water
have been used in the North Sea and
offshore Brazil.
They have had them in the
Gulf of Mexico. They have just not
been popular, said Neil Manning,
president of CDL, a subsea engineering
company that has a backlog of four
orders for acoustic communications
devices in the US Gulf of Mexico and
expectsmore.
The search for reliable, quickly
available solutions at a reasonable
costmeans much of what is new is
based on something established. Mario
Lugo, president and chief executive
officer of Trendsetter Engineering,
described this process as solving
an unconventional problem with
conventional technology.
Wilie has developed two devices
by adapting advanced pyrotechnics.
Shells emergency separation

tool (EST) employs a ring of charges
to allow a floating platform to make an
emergency disconnect. The charges are
the same kind used to perforate casing
during completions. The EST works like
a circular firing squad and has been
used to cut through a 9-in. drill collar.
The controlled blast did not damage the
polyurethane holder on the opposite
side of the circle. Wilie said the number
of charges employed is not exceptional,
noting, We utilize a much greater
amount of explosive on a daily basis
for completions.
A second invention, the collapsible
insert device (CID), uses charges
imbedded inside a double-walled pipe
to create a blockage to stop a blowout
above the formation. The explosions
push in the inner walls, filling the space
inside the pipe like a closed heart valve.
Wilie sees several CIDs installed just
above a reservoir. They are triggered
by coded signals sent using vibrations
down the casing. Adding the insert
adds about half an inch to the diameter
of the pipe. The force needed to shut
down the flow does not damage the
outer casing, and the obstruction can
be drilled out later to reopen the well
without compromising the strength of
the outer wall, Wilie said.
Triggering these devices requires
a communications system that can
survive a blast. Shell opted for an
acoustic communication system
from Metrol Technology that sends
vibrations downhole along the pipe.
Secure coding from another contractor
is used to ensure the devices can only
be triggered by an authorized person.
No wires are required for acoustic
communication, but battery-powered
relays are needed along the way to
sustain the signal.
The key with these systems is
they are intelligent. They can operate
on multiple frequencies. They can tune
JPT AUGUST 2012
closing, I will note that

weInhave
seen how properly
These two devices developed by Shell use advanced explosives and

acoustic communications to deal with emergencies. The emergency
separation tool (EST) uses two rings of shaped charges for shearing
if a drillship is rapidly moving off station. The collapsible insert device
(CID) closes off the flow of oil using two charges inside the doublewalled pipe to create a barrier. A video showing how the CID works is
available in the digital edition of JPT, available on the App Store and
online at www.spe.org/jpt/print/.
themselves to cope with a dynamic
environment, said Ben Taylor, general
manager for Metrol.
Interest also has been rising in
acoustic communication, which uses
vibrations through water. One of CDLs
clients, Trendsetter Engineering, was
installing an acoustic communication
device to activate a backup hydraulic
pressure source for a BOP. US
regulators have been asked to approve
the use of the acoustic systems as an
alternative to requiring operators to
keep a remotely operated vehicle (ROV)
nearby to control them.
JPT AUGUST 2012
It (an acoustic system) can kill a

well in 45 seconds. It takes a long time
to deploy an ROV, Manning said.
Adding communications links,
which can also be used to pick up early
warning signs of trouble, are among
the many incremental steps that can
improve the industrys odds offshore.
It is not going to be the be
all and end all for the industry. We
might be better off for having better
monitoring capabilities and the ability
to close the well you didnt have, Taylor
said. Comingling all of it together, you
have a powerful set of options.JPT
implemented safety systems

can significantly influence the
safety of a very dangerous
industry. After the loss of
the submarine Thresher
almost 50 years ago, the
Navy implemented what is
now known as the Subsafe
program. I will also note that
implementation took less
than 1 year after the loss of
the Thresher. No US Navy
Subsafe-certified submarine
has been lost in the 50 years
since then. In the 50 years
prior to Thresher, we lost on
average one submarine every
3 years due to noncombatrelated causes. That change
in safety is arguably the direct
result of the implementation
of the Subsafe program.
Donald Winter,
professor of engineering
practice at the University of
Michigan, former secretary
of the US Navy, and
chairman of the Academy of
Engineering Macondo panel
47
TRUST BUT VERIFY
ONLINE
BOP Quality Control

Tightened Globally
API Standard 53: Blowout Prevention

Equipment Systems for Drilling Wells
http://ballots.api.org/ecs/dpos/API53-4th-Ed-Ballot1.pdf
For further reading:
Macondo Well-Deepwater Horizon

Blowout from The National Academy
of Engineering. An electronic version
is available for free at its website,
www.nae.edu/53926.aspx
Forensic Examination of Deepwater
Horizon Blowout Preventer
by Det Norske Veritas. The main
report is under appendix D at:
www.boemre.gov/
DeepwaterHorizonReportAppendices
.htm
BSEE Transcript, May 22 hearing
on BOPs: http://recapd.com/
widget?5748e8
BOP risk and reliability model to give
critical decision support for offshore
drilling operations: www.scandpower
.com/bop
PAPERS
SPE 151182 Blowout Preventer
(BOP) Health Monitoring by Jim
McKay, BP, et al.
SPE 140365 Low Force Shear Rams:
the Future is More by Frank Springett,
National Oilwell Varco
SPE 119762 Pull Your BOP StackOr
Not? A Systematic Method to Making
This Multi-Million Dollar Decision by
Jeff Sattler, West Engineering Services
48
he Macondo disaster has had a

significant effect on how blowout
preventers (BOPs) are maintained.
Before drilling could resume in the
USGulf of Mexico, every BOP had to
beinspected and recertified, with
allparts inspected for wear and
compared to the original design
specifications to ensure they are as
good as new. What started in the US
has spread globally.
Every BOP was essentially
re-evaluated, and that applied to
all suppliers, said Michael Creech,
chief operating officer in the industry
division at Bureau Veritas, which has
seen a significant rise in recertification
work in the past 2 years. For example,
rising equipment repairs and part sales
had a significant effect on Camerons
drilling systems business, which
includes BOPs. New equipment orders
tripled in 2011 and aftermarket sales
were up 70% in 2011, according to its
annual report.
This tragic incident has caused
drilling contractors and operators,
bothon land and in deepwater
environments, to turn to original
equipment manufacturers (OEMs) for
service, equipment repair, and related
parts, in many cases to recertify BOP
stacks back to OEM specifications
or for new equipment to replace an
aging fleet, Cameron wrote in the
annualreport.
Axon Energy Products also has
seen a jump in recertification work,
which has raised questions that can
be difficult to answer. A problem faced
by those doing this work is that some
older equipment lacks documentation

to establish what had been done to it,
said Dan Church, president of Axons
Pressure Products Equipment division.
Some equipment is being retired
because it lacks the paperwork to prove
it has not been modified in a way that
will affect its performance.
The high level of inspection
work has pointed to the need for an
American Petroleum Institute standard
on recertification, said Church. Work
has begun on an added section to API
16, which covers BOP construction
andtesting.
Soon after Macondo, BOP
manufacturers also began changing
their new equipment operations, Creech
said. A couple of manufacturers of
BOPs have fundamentally changed
the way they are certifying BOPs, he
said. Those customers imposed more
stringent and detailed testing protocols
to measure BOP performance tests
more consistently.
Bureau Veritas is also being
calledon to evaluate suppliers
aroundthe worldfor example valve
makers in Chinato ensure that each
factory is delivering components
meeting the contract specifications
covering materials, manufacturing,
andtesting.
And original equipment
manufacturers are expanding their
product reviews to downhole tools and
connectors, seeking ways to reduce the
risk of those components failing due to
flaws in the design or specifications,
said Creech, whose company is involved
in these reviews. JPT
JPT AUGUST 2012
Production Method
for Methane Hydrate
Sees Scientific Success
Joel Parshall, JPT Features Editor
The testing flare burns brightly during a methane hydrate production test of the Ignik Sikumi No. 1 well on
the Alaskan North Slope. The orange structure at right is the well house. Photo courtesy of ConocoPhillips.
production method that could unlock large reserves

of methane hydrate in sand-dominated reservoirs
was tested successfully from a scientific and operational standpoint in a recent research experiment on the Alaskan North Slope (ANS). The experiment was conducted by the
National Energy Technology Laboratory (NETL) of the United
States Department of Energy (DOE) in partnership with ConocoPhillips and Japan Oil, Gas, and Metals National Corporation.
A proof-of-concept test was conducted between 15 February and 10 April at the Ignik Sikumi No. 1 well in the Prudhoe
Bay field operated by ConocoPhillips. The production technique
featured the injection of carbon dioxide (CO2) to exchange and
release methane (CH4) from the hydrate, a method developed
through laboratory collaboration between the University of
Bergen in Norway and ConocoPhillips. The released gas was
then produced by means of reservoir depressurization.
50
The test objective was to perform injection and flowback from a single well to validate that the CO2/CH4 exchange
mechanism demonstrated in laboratory tests will occur in a
reservoir of natural methane hydrates, said Ray Boswell, technology manager for gas hydrates at the NETL. It was the first
field-level trial of a production method involving the exchange
of CO2 with the methane molecules contained in a methane
hydrate structure. The focus of the test, including the design
of the well, was on the technical feasibility of this new technology, rather than an attempt to produce gas at commercial
rates, Boswell said.
CO2 Mixture Injected in Reservoir

The Ignik Sikumi well test was equipped with downhole fiberoptic distributed temperature and acoustic sensing, three
downhole pressure gauges, and full surface instrumentation,
JPT AUGUST 2012
Methane hydrate represents a vast, entirely untapped

resource that holds enormous potential for US economic and
energy security, the DOE said in announcing the outcome of
the Ignik Sikumi test in May. Globally, gas hydrate resources
are often touted as immense, but much of the resource occurs
at low concentrations in fine-grained sediments and thus poses
great challenges to potential production. However, Arctic and
deepwater settings are known to hold large stores of gas
hydrate in the form that recent research indicates is recoverable
with existing technologies: hydrate in sand-dominated reservoirs in which hydrates reach high concentrations.
Interest in hydrate production has grown, following a published assessment by the US Geological Survey (USGS) in 1995
of in-place methane hydrate volumes on the ANS. In 2007,
the NETL, the USGS, and BP Exploration Alaska carried out a
hydrate research project in the Milne Point field on the ANS.
A wireline reservoir test of an openhole well confirmed that
gas could be produced through reservoir depressurization and
enabled further determination of reservoir productivity. With
this and other information, the USGS in 2008 assessed the
mean volume of technically recoverable methane hydrate on the
ANS at 85 Tcf, the worlds first assessment of gas hydrate that is
producible with existing technologies.
New Research Planned
including high-resolution in-line gas chromatography. Over a

13-day period, a carbon dioxide/nitrogen mixture was successfully injected into the 30-ft-thick reservoir interval, saturated
with methane hydrate, without loss of injectivity. This was followed by a production stage in which the pressure was held
above the stability pressure of the in-situ methane hydrate. CH4
was produced during this stage, and initial data analyses indicated that CO2 exchange was achieved. Ongoing analyses of the
extensive datasets acquired at the field site are under way to
determine the overall efficiency of simultaneous CO2 storage/
CH4 production from the reservoir.
As part of the demonstration, the depressurization phase
of the test extended for 30 days. The longest previous field test
of depressurization to extract gas from hydrate lasted 6 days as
part of a Japanese-Canadian testing program at the Mallik well
in Canadas Northwest Territories during 2007 to 2008.
JPT AUGUST 2012
The Ignik Sikumi well test will provide critical information to

advance the NETLs efforts to evaluate various potential methane hydrate production technologies. The next stages of NETL
research will focus in part on evaluating gas hydrate production
over longer durations, likely through depressurization, with the
goal of making sustained production economically viable. While
this may take years, the DOE said that it also took years for the
early shale gas research and technology demonstrations backed
by the department in the 1970s and 1980s to develop into economically viable productionmethods.
The DOE recently announced two major new steps in its
methane hydrate research effort. The department has made
USD 6.5 million available in fiscal 2012 for research into technologies to locate, characterize, and safely extract natural gas
from methane hydrate formations such as those in the Arctic
and along the US Gulf of Mexico coast. Projects will address
Characterizing deepwater gas hydrate by means of
direct sampling and/or remote sensing field programs.
New tools and methods for monitoring, collecting, and
analyzing data to determine reservoir response and
environmental impacts related to methane hydrate
production.
Clarifying methane hydrates role in the environment,
including responses to warming climates.
In a second initiative, the DOE is requesting USD 5 million in the fiscal 2013 budget to further gas hydrate research
domestically and in collaboration with international partners.
The exact nature of the research is being determined. However, a longer methane hydrate extraction test on the ANS is
envisioned on an existing gravel-bed pad that can accommodate year-round operations. Such an effort would likely require
engaging private-sector and international partners. JPT
51
TALENT & TECHNOLOGY
Soft Skills Council: A New SPE Initiative

B. Fattahi, SPE, Aera Energy; C.S. Howes, SPE, Chevron Global Upstream; N. Milanovich, SPE, Aera Energy; and
Giovanni Paccaloni, SPE, Paccaloni Consulting
Our industry has entered a new era. An

increasing demand for energy, complexity of resources, developing new technologies, management of the supply
and demand for skilled human workforce, and the urgency of rapid knowledge transfer are daunting challenges.
The sociopolitical climate, whether it is
in ones backyard or across the globe,
demands transparency in our actions
that conveys internal congruency with
external expectations. This requires substantial ability to interact across a broad
spectrum of disciplines, differences and
diversity, and individual expectations. To
prepare for this new world, future industry professionals must equip themselves
with an expanded set of competencies
that include organizational abilities to
effectively develop and deliver technical
solutionssoft skills.
While some still advocate identifying the top performers for missioncritical roles, the complexities of the new
environment demand a new approach
that sees the potential for development
of leadership attributes in every individual to not only enhance his or her talent,
but more importantly, to unlock organizational capabilities to ensure success.
Forward-looking companies see that
increasing collaboration in the development and rapid implementation of technology solutions will require a new generation of professionals who are able to
inspire and motivate and who display
leadership qualities regardless of their
position in the organization.
In 2011, SPE formed the Soft Skills
Council. There were two major drivers
for the move: to help SPE fulfill its mission, vision, and values, and to respond
to a growing conversation within the
industry about the need to help our pro-
52
fessionals develop interpersonal skills to

add business value in the future.
Attributes of a Future
Professional
The benefits and responsibilities of membership in a professional society are usually included in the organizations statements of mission, vision, and values. For
SPE, these are the following:
Mission: To collect, disseminate,
and exchange technical knowledge
concerning the exploration,
development, and production of
oil andgas resources, and related
technologies for the public benefit;
and to provide opportunities for
professionals to enhance their technical
and professional competence.
Vision: To be a society of
professional excellence, providing its
members the highest quality lifelong
learning, and continuous personal and
professional growth.
Values: Excellence, integrity,
professionalism, lifelong learning,
diversity, volunteerism, innovation, and
social responsibility.
Considering that every word in the
mission, vision, and values statements
was carefully selected, the fact that the
word professional appears often is an
indication of its significance. Providing members with continuous personal
and professional growth is an important goal for SPE, signifying a belief that
the degree to which industry professionals prosper will depend on their
ability to continuously develop skills,
with a balance between technology and
soft skills.
We are all facing a complicated new
work environment that is ever-changing,
challenging, multidisciplinary, and in-
creasingly global, with more complex

technical problems to be solved. There
is more public awareness and interest
in what we do, and in who we are. These
developments, combined with our rapidly changing demographics, stress the
need for a spectrum of new skills and
competencies. In the new work environment, new attributes are rewarded, and although developing technical
literacy is highly regarded, acquiring
soft skills is considered equally critical
forsuccess.1,2
For SPE members, the meaning of
their membership in a professional society usually evolves over the course of
their career. During the pre-hire phase,
students are focused on obtaining their
degree while developing their fundamental knowledge of the industry. They are
keenly interested in employment opportunities as interns and full-time employment when they graduate. Students see
SPE as an opportunity to start to build
their professional networks. They begin
to form opinions about the integrity and ethics of industry professionals
and potential employers as they learn
about corporate cultures. They make
decisions about their long-range goals
foremployment.
As young professionals, they start
the journey towards personal mastery and
acquiring business acumen. They look at
SPE as a vehicle for achieving depth in a
technical specialty as well as breadth in
a wide spectrum of technical challenges
facing the industry. They expect SPE also
to provide them with early opportunities to learn leadership skills. This first
decade of employment primarily means
a great opportunity for personal and professional growth both in technical competencies and soft skills.
JPT AUGUST 2012
TALENT & TECHNOLOGY
Fig. 1The Soft Skills Council will act to initiate, energize, and maintain discussions on various soft
competencies.
Mid-career professionals are more

likely to be the mentor than the mentee
in their professional relationships. This
group seeks opportunities to stay current with advancing technology. Often
mid-career professionals contribute to
the technical discourse as they establish
their credentials in their technical disciplines. Mid-career professionals are in
a position to influence change in their
organizations, so they use their skills of
persuasion, negotiation, and conflict resolution on a daily basis.
Highly experienced professionals
are more likely to be delivering technical advice than to be on the receiving end
of it. Whether they are technical subject
matter experts, who demonstrate skills in
creativity, innovation, and imagination;
petroleum engineering generalists using
critical thinking to solve a wide spectrum
of technical problems, or senior managers with expertise in organization and
management, the significance of development of soft skills continues throughout their professional career.
In the post-employment phase,
many industry members continue to
serve as mentors, instructors, Distin-
54
guished Lecturers, and role models.

Their ability to contribute in a fast-paced,
advancing technical environment is a
function of their persistence and perseverance in staying current in their field.
Those with strategic agility and business
acumen will continue to be engaged in
the professional dialogue of their industry even after their full-time employment
has concluded.
The common thread for these five
career phases is the balance needed for
technical competencies and proficiency
in soft skills. The intertwining relationship between technical and soft skills is
the binding fabric holding the pages of
the book of ones career. Without it, the
book falls apart.
Soft Skills Council

The role of the Soft Skills Council is to
provide venues for professional growth
in addition to technical development
opportunities. It will identify gaps
between the nontechnical skills members need and those currently provided by SPE, and make recommendations
to fill these gaps. These recommendations will include ways to share informa-
tion, stimulate ideas, and coordinate initiatives aimed at meeting the industrys
needs in developing member professional competencies in various areas of leadership. The councils overarching task
will be to establish a process for documenting these efforts, to develop action
plans, to monitor effective global implementation of these plans, and to avoid
duplication of effort. The council does
not intend to displace other activities in
the area of soft skills. Instead, it will use
various SPE venues to initiate, energize,
and maintain discussions on topics related to the complicated new work environment: leadership, management, ethics,
and diversity (Fig. 1).
Examples of ideas the council is
considering are development of an SPE
soft skills competency matrix; continuing education short courses; a lecture
program, similar to SPEs Distinguished
Lecturer Program; venues for publication of papers; panel discussions; and
opportunities for participation in leadership programs in concert with other
professionalsocieties.
To better understand the status of
activities around the soft competencies,
JPT AUGUST 2012
the council recently conducted a survey

of SPE committees. This gap analysis has
allowed the council to consider programs
that complement the current activities
and avoid duplication of effort. This will
be a starting point for developing future
SPE programs aimed at providing members the opportunities to achieve personal mastery in interpersonal skills and to
acquire business acumen.
Going forward, the councils intentions are to leverage the existing SPE
infrastructure and the passion generated
through its mission, vision, and values.
Along these same lines, and in collaboration with the Young Professionals Coordination Committee and the Talent Council, the Soft Skills Council is planning an
expanded workshop on soft skills at the
2012 SPE Annual Technical Conference
and Exhibition (ATCE) in San Antonio,
Texas, in October. This workshop, titled
Cross-Generational Teams Adding Value
to the Workplace, is targeted at all five
phases of SPE members, from the prehire phase that includes students to professionals at all experience levels, and on
to the post-employment group. Attendees
will explore the balance between technical and soft competencies expected from
industry professionals, and learn about
critical thinking and networking. Visit
www.spe.org/atce for more details.
Conclusion
In todays multicultural global organizations, workers are expected to display greater creativity and autonomy for
problem solving than previous generations. To cope with modern complexities,
we need to learn and refine a number of
important nontechnical (soft) competencies that have a great impact on the bottom line.
The essence of the councils message
includes the following key elements, held
as the guiding principles in its evaluations and recommended actions:
The global nature of our business
has broader implications relating
socio-economic, cultural, and regional
dimensions.
Human capabilities and actions
ultimately determine the success
JPT AUGUST 2012
of our industry. The nature and the

role of our industry in the emerging
global complexity demands that our
capabilities and actions expand beyond
technical knowledge.
The increasing role of
technologyand the mixture of the
social,environmental, political, and
economic construct across our industry
require finer attunement and shedding
of parochial paradigms.
While our industry is recognized
for solving complex technical problems,
in contrast, developing soft skills is a
process of discovery and augmentation
of otherwise underdeveloped or hidden
capabilities.
Competency enhancement of our
industry professionals will help determine
the industriys credibility and image.
Integration, alignment, and
coordination of a broad spectrum of
soft skills-related activities across the

SPE landscape is a precursor to its
sustainability and success.
We invite you to join us at the ATCE
workshop and renew your commitment to the values of excellence, integrity, professionalism, lifelong learning,
diversity, volunteerism, innovation, and
socialresponsibility. JPT
References
1. Heath, C.P.M. 2000. Technical and NonTechnical Skills Needed by Oil Companies. Journal of Geoscience Education
48 (11).
2. Fattahi, B. and Riddle, S.O. 2001. Competency Ingredients for the Successful Petroleum Professional in the New Millennium.
Paper SPE 68795 presented at the SPE Western Regional Meeting, Bakersfield, California, 2630 March.
Behrooz Fattahi, 2010 SPE president, is a learning advisor at Aera Energy, an affiliate of
Royal Dutch Shell and ExxonMobil companies. He served as the executive editor of the
SPE Reservoir Evaluation and Engineering Journal, and on the SPE Board of Directors as
director of the Western North America Region and vice president-finance. Fattahi serves on
the United States National Petroleum Council, and is the President-Elect Designate of the
American Institute of Mining, Metallurgical, and Petroleum Engineers. He is the Chairman
of the SPE International Soft Skills Council. Fattahi earned PhD degrees in aerospace
engineering and in mechanical engineering from Iowa State University.
Susan Howes is organizational capability consultant in the Reservoir Management
Department at Chevron, with prior assignments as reservoir management consultant and as
manager of the Horizons Program, Chevrons Technical Competency Development program.
Her 30-year career includes various engineering assignments in Houston and Denver with
Chevron and Anadarko, including responsibilities in reservoir management, organizational
capability, managing acquisition and divestment projects, economic evaluation, reservoir
studies, and simulation of conventional and unconventional reservoirs. Howes has a BS in
petroleum engineering from The University of Texas, and is a Distinguished Member of SPE.
She is a member of the SPE International Soft Skills Council.
Narandja Milanovich is an internal consultant in organizational effectiveness and leadership
development at Aera Energy. She received her bachelors and masters degrees in mechanical
engineering at Rice University and her masters degree in counseling psychology from
Pacifica Graduate Institute. Milanovich is currently working on her PhD in depth psychology.
She is a member of the SPE International Soft Skills Council.
Giovanni Paccaloni, the 2005 SPE president, is an E&P consultant based in Milan, providing
the knowledge and experience gained in over 40+ years in top technical and managerial
roles at AGIP and at ENI E&P including head of the Production Optimization Technologies
Department; vice president of E&P Laboratories; vice president of drilling, production
optimization, and subsurface geology operations; and vice president of R&D and technology
planning. Paccaloni has an advanced degree in industrial chemistry from the University of
Bologna and is a Distinguished Member of SPE. He is a member of the SPE International Soft
Skills Council.
55
TECHNOLOGY
Bob Harrison,
SPE, is the global
technical head
of reservoir
engineering for
Senergy Limited.
He worked for
more than 20 years with British Gas
and Enterprise Oil. Harrisons major
interest is rapid, accurate screening of
oil and gas assets. He holds a BS degree
in electrical engineering from the
University of Manchester, an MS degree
in petroleum engineering from Imperial
College London, and an MBA degree
from Cranfield University. Harrison
has edited textbooks on formation
evaluation and has published more
than 20 papers. He serves on the JPT
Editorial Committee and is a technical
editor for the SPE Reservoir Evaluation
& Engineering journal, for which he was
also review chairman.
Recommended additional reading
at OnePetro: www.onepetro.org.
SPE 153537 A Study of Differences
in Array-Induction and Multi-Laterolog
Responses in a Well Drilled With HighSalinity Water-Based Mud by Bill Corley,
Baker Hughes, et al.
SPE 153593 A New Method for
Estimating Waterflood Oil-Recovery
Efficiency Using Post-Waterflood NMR
and Dielectric Well Logs, Belridge Field,
California by Daniel A. Reed, Aera Energy,
et al.
SPE 154426 Reducing Reservoir
Uncertainties Using Advanced Wireline
Formation Testing by D. Loi, Eni, et al.
56
FORMATION
EVALUATION
A little bit of knowledge is not always a dangerous thing.
Recently, I was reviewing some simulation models with a clients subsurface
team. They were taken aback when I asked them if they were happy with the petrophysical inputs they had been provided with. Its not our job to question the petrophysics, they replied in unison. However, it was obvious that they were struggling
to get the simulation model to match the observed reservoir performance and could
do so only by dramatically changing the input rock properties. It transpired that
their employer had recently bought the asset and the team had inherited the previous operators interpretations, which, to save time, had simply been imported into
their model.
After much cajoling, the team agreed to review the raw core and log data and
opened a Pandoras box. The older wells had poor borehole quality with large washouts, usually in shaly zones, that adversely affected the logs so that they indicated
porosity in shales. The net-pay count was, therefore, optimistic. Closer inspection of
the permeability/porosity transform revealed that the core data had not been corrected for the Klinkenberg effect or for compaction or even checked against test values.
Finally, the computed Corey coefficients for the relative permeability curves looked
very low for the oil-wet carbonate they were supposed to characterize, which was
because of unstable flooding of the core plugs in the laboratory.
With these revelations in mind, the team members decided that the petrophysics for the field had to be reinterpreted, and they collaborated closely with their company petrophysicist during the review. A new simulation model was built that was
more coherent, more consistent, and more realistic and that gave much better results
thanbefore.
There is no harm in developing a petrophysical side to ones discipline. As I mentioned in my Focus column in August 2009, petrophysics touches all the subsurface
disciplines in one way or another. Being able to converse intelligently with log analysts
and ask them pertinent questions can only be good news for employers and subsurface
project managers. It can also save time that may have been wasted creating simulation
models that do not reflect reality. JPT
JPT AUGUST 2012
Advances in Measuring Permeability Address

Shortcomings of Crushed-Rock Technique
he most commonly used industry

method for measuring permeability
is the Gas Research Institute (GRI)
technique or its variants, which involve
the use of crushed samples. The
accuracy of such techniques, however,
is questionable because of a number
of inadequacies, such as the absence
of reservoir overburden stress while
conducting these measurements. In
addition to the questionable accuracy
of crushed-rock techniques, studies
have indicated that there is significant
variability in results reported by
different laboratories that use crushedrock techniques to measure permeability
on shale samples. The complete paper
presents a robust steady-state technique
for measuring permeability on intact
tight-rock samples under reservoir
overburden stress. These standards can
be used to calibrate any permeabilitymeasurement apparatus used on intact
tight-rock samples, such as shales, to
enable delivery of consistent results
across different laboratories.
Introduction
For low-permeability reservoirs such
as shales, the GRI method is popular
because of the relatively quick times associated with the measurements as a result
of the increased surface area available
and because of the perception that measurements on intact low-permeability
plug samples by use of well-established
methods such as steady state or pulse
decay could take such long times that it
would make such measurements impractical. However, using crushed rock for
measuring permeability has a number
of inadequacies, resulting in skepticism
associated with the accuracy of such
measurements. Perhaps the most serious
drawback of the crushed-rock method
for measuring permeability, as presented
in a number of studies, is the wide variability in results reported by different
vendors, with results that could differ by
as much as three orders of magnitude.
flow regime or transition regime because

of the relatively small pore sizes in
the nanometer range. The continuum
assumption and, therefore, Darcys law
may not be valid under those conditions.
Furthermore, gas slip or Klinkenberg
correction is ignored in the GRI method.
Conducting permeability measurements
at low pressures or ignoring the Klinkenberg correction for tight-rock samples
could lead to significant departure from
in-situ permeability values.
Shortcomings of GRI Technique

of Measuring Permeability
Inconsistency and Lack of Standard

Analytical Expression. Several studies have found significant variation (up
to three orders of magnitude) in results
reported by different laboratories while
using the GRI method to determine permeability of shales. The GRI report does
not give a detailed methodology for interpreting the raw data, and each of the laboratories has developed its own proprietary technique for interpreting the data.
The GRI, or crushed-rock, technique for

measuring permeability is a relatively
fast method for measuring permeability
on low-permeability samples, but it has
the following shortcomings.
Absence of Overburden Stress. The
GRI technique is implemented on
crushed rock samples, and, therefore,
these measurements are not conducted
at reservoir overburden stress. Ignoring the effect of overburden stress while
measuring the permeability could lead to
significant discrepancy between permeability measured in the laboratory and
in-situ permeability.
No Klinkenberg Correction and Darcys Law Assumption. The GRI permeability is measured at pore pressures
that are much lower than reservoir pressures. At lower pore pressures, the flow
of gas through tight-rock samples such
as shales may be in the free-molecular-
This article, written by Editorial Manager Adam Wilson, contains highlights of paper
SPE 152257, Advances in Measurement Standards and Flow Properties Measurements
for Tight Rocks Such as Shales, S. Sinha, SPE, E.M. Braun, SPE, Q.R. Passey, SPE,
S.A. Leonardi, SPE, A.C. Wood III, T. Zirkle, SPE, J.A. Boros, SPE, and R.A. Kudva,
SPE, ExxonMobil Upstream Research, prepared for the 2012 SPE/EAGE European
Unconventional Resources Conference and Exhibition, Vienna, Austria, 2022 March.
The paper has not been peer reviewed.
Time Scales Required for GRI Measurements. The original GRI method
was developed by use of Devonian shale
samples with matrix permeabilities in
the range of 0.0020.45 nanodarcies, a
few orders of magnitude lower than the
permeability of shale assets that are currently of commercial interest. This raises the question of whether the original
GRI crushed-particle size of 20/35 mesh
(0.670.17 mm) is appropriate for modern measurements.
A simple mathematical analysis indicates that the time response of
a pressure-decay measurement should
scale as follows:
d 2 . . . . . . . . . . . . . . . . . . . . (1)
k
Thus, testing a sample 1,000 times

more permeable than Devonian shale will
require measurements to be conducted
For a limited time, the complete paper is free to SPE members at www.jptonline.org.
JPT AUGUST 2012
57
Core holder
BPR
To vent
Gas cylinder
Sleeve
fluid pump
Sleeve fluid
Gas pump
Fig. 1Schematic of steady-state apparatus for measuring

permeability on very-tight-rock samples.
1,000 times faster. Although instrumentation exists to make such rapid measurements, it is not in common use in coreanalysis laboratories.
Alternatively, to keep the same measurement time, the size of the particles
of crushed rock should be increased by a
factor of 1, 000, which would approach
the size of a standard core plug.
Steady-State Method of
Measuring Permeability
The steady-state method has been used
to measure permeability of conventional rocks for several years. The measurements are carried out on plug samples
that are approximately 11.5 in. in diameter and more than 1 in. in length. The
method has not been used frequently for
low-permeability samples because of the
difficulty in measuring the low flow rates
associated with tight-rock samples and

the perception that these measurements
could take very long times. The authors
laboratory has developed an apparatus to
measure gas-permeability values as low
as 10 nanodarcies on core plugs (Fig. 1).
A computer-controlled pump, fed with
gas from a gas cylinder, maintains a constant pressure at the upstream end of the
core, while a lower pressure at the downstream end of the core is maintained by
use of a backpressure regulator. A sleeve
fluid confining-pressure system is used
to maintain a constant confining pressure on the core sample during the measurement. The pump-control software
logs positions of the pump pistons, and
these data are plotted against time to
obtain flow rates. With known sample
geometry, pore pressure, and measured
flow rates, it is straightforward to use
58
Low-permeability calibration standards

of known permeability were designed
and developed by creating micron-size
channels in an impermeable matrix of
the same size as a typical plug sample.
These may be fabricated by embedding
one or more capillary tubes of known
internal diameter in the matrix or by
drilling controlled-size holes in the
matrix. The permeability is calculated
from first principles, using the HagenPoiseuille equation for laminar flow in a
circular conduit, and it can also be verified by experimentalmeasurements.
Figs. 2 and 3 show a sketch and
a photograph of one of the calibration
standards, respectively. The standards
were fabricated by drilling a hole along
the length of a stainless-steel cylinder
and using epoxy to cement a precisionbore glass capillary in the hole. Compressed air was used to confirm that flow
occurred only through the bore of the
capillary, with none bypassing through
the epoxy-filled annulus.
The outside diameter of the calibration standard D is similar to that of a
core plug used for permeability measurements, typically 1 or 1.5 in., so the standard can be used to calibrate the apparatus used to measure permeability on
rocksamples.
PR 4 Pmean
. . . . . . . . . . (2)
8 L Pout
Using the Hagen-Poiseuille equation, the volumetric gas-flow rate exiting the calibration standard is given by
Eq. 2. If the glass capillary is considered
a porous medium, then the permeability of the channel with internal diameter
d can be characterized by use of Darcys
law, as in Eq. 3:
q
Fig. 2Sketch of capillary-based
permeability standard.
Capillary-Based Standards
for Low-Permeability
Measurements
q=
Darcys law to compute permeability for

the test sample.
For samples with permeability values greater than 100 nanodarcies, the
measurement time is not more than a
few days, with more time required for
tightersamples.
Fig. 3Capillary-based
permeability standard
(47-m-diameter channel).
kchannel =
q L Pout
. . . . (3)
d 2 P Pmean
JPT AUGUST 2012
Combining Eqs. 2 and 3, the permeability of a single channel can be

expressed as
kchannel
d 2 . . . . . . . . . . . . . . . . . . . . (4)
32
If the diameter of the channels is

very small compared with the diameter
of the overall sample, then the effective
permeability of the cylindrical standard
can be expressed as
keffective kmatrix + kchannel
nd 2 . . . (5)
D2
Combining Eqs. 4 and 5, it can be

shown that the effective permeability of
the standard when the matrix is impermeable is given by Eq. 6:
keffective =
nd 4 . . . . . . . . . . . . . . (6)
32 D 2
Thus, the effective permeability

of the cylindrical standard can be controlled and predicted by controlling the
size and number of the channels.
The permeability of the calibration
standard is calculated from Darcys law
for a compressible fluid, as in Eq. 7:
k=
q LPout
. . . . . . . . . . . . . . . . (7)
APPmean
If Eqs. 6 and 7 indicate the same

permeability within the stated accuracy
of the permeability-measurement apparatus, the apparatus is considered to be
well-calibrated.
Results
The fabricated calibration standards
were tested in our steady-state apparatus, and experimental results were compared with permeability values calculated from first principles using Eq. 6.
Six calibration plugs were constructed by drilling a hole along the length of a
stainless-steel cylinder and using epoxy
to cement a precision-bore glass capillary
in the hole. Previous attempts to drill a
micron-size hole directly through a solid
metal cylinder of the size of a typical
core plug were not successful because currently there are no commercially existing technologies that can drill such small
holes with high precision at reasonable
JPT AUGUST 2012
Measured permeability
8,493
193
215
205
215
215
161
1,000
10B
10C
100
10
13
k, nanodarcies
10,000
9,827
Calculated permeability
100,000
104,829
102,165
1,000,000
1
5
10A
26
47
Sample
Fig. 4Measured and calculated permeability of six different
permeability-calibration standards.
costs. Glass capillaries were used with

internal diameters of 5, 10, 26, and 47 m.
Three standards (10A, 10B, and 10C) were
made using a 10-m glass capillary; the
other three plugs (Samples 5, 26, and 47)
were made using capillaries with internal
diameters of 5, 26, and 47 m, respectively. The plugs were 1 in. long and 1.5 in. in
diameter in order to fit within the steadystate apparatus to measure permeability.
Fig. 4 is a plot showing the comparison between measured permeability and that computed using Eq. 6. Note
the excellent agreement between the calculated and measured permeability for
most samples, which indicates that the
standards behaved as expected.
Conclusions
Current industry practices for measuring
permeability on tight rocks such as shales
using the GRI, or crushed-rock, technique
are inadequate because of the lack in consistency in results reported by the different vendors and fundamental shortcomings of the crushed-rock method in
providing a meaningful measurement.
Plug-based permeability measurements
can be used to overcome the limitations
of the crushed-rock techniques. We have
developed a steady-state permeability
apparatus for measuring permeability on
tight-rock samples, and initial results suggest that there is no systematic trend
between steady-state permeability mea-
JPT AUGUST 2012
surements on plug samples and results

reported by vendors using crushedrock techniques. Further investigation is
required to confirm if a systematic trend
exists between these measurements and
those from the vendors offering crushedrock permeabilitymeasurements. JPT
Nomenclature
A = cross-sectional area of
capillary standard
d = diameter of crushed particle
or capillary bore
D = outside diameter of capillary
standard
k = permeability
keffective = effective permeability of a
capillary standard
kchannel = permeability of a capillary
channel
kmatrix = permeability of matrix
surrounding capillary bores
L = length of capillary standard
n = number of capillary channels
in capillary standard
Pmean = mean pressure, absolute,
average of inlet and outlet
pressures
Pout = outlet pressure, absolute
q = volumetric flow rate
R = inner radius of capillary tube
t = time
P = pressure drop
= dynamic viscosity
= porosity
Assessment of European Shale-Gas Play

Takes Social Acceptance Into Account
n 2008, Shell obtained two licenses

for unconventional gas exploration in
the Skne region of southern Sweden,
with a total size of 2500 km2. The
objective was the Cambro-Ordovician
alum shale, one of the thickest and
richest marine source rocks in onshore
northern Europe. Concerns from the
residents of Skne regarding the visual
impact of activities and potential impact
of drilling activities on the aquifers
and on the tourism industry have
resulted in extensive engagements with
stakeholders and specific requirements
around seismic acquisition, site
preparation, and operations.
Introduction
In 2006 and 2007, a screening study
for potential unconventional basins was
undertaken in Shell. The focus for this
screening was to identify basins with
excellent source rocks because unconventional gas systems require excellent,
gas-prone source rocks in the right maturity window. Several source-rock systems were screened, one of which was
the Lower Paleozoic system on the east
European platform. This system has a
considerable regional extent, stretching
more than 1500 km from Denmark in
the northwest to the Moesian platform in
Romania and Bulgaria in the southeast.
The derisking strategy for this
opportunity was based on both technical
and nontechnical aspects. The aim was to
collect geological and geophysical data to
constrain depth and thickness of the shale
Fig. 1Structural elements and Cambrian stratigraphy of Skne.

The dotted area indicates the TESZ fault zone. : ngelholm trough;
C: central Skne; F: Fyledalen fault zone; H: Helsingborg area;
K: Kvlinge area; L: Landskrona area; S: southwest Skne;
V: Vomb trough.
and to identify potential dolerite dykes. In

addition, well data were needed to establish rock properties and gas content.
Sweden does not have much exposure to hydrocarbon-related activities,
and the application for the two licenses
in Skne resulted in nationwide press
SPE 152339, Assessment of an Unusual European Shale-Gas Play: The CambroOrdovician Alum Shale, Southern Sweden, by Wilfred Pool, Mark Geluk, Janneke
Abels, and Graham Tiley, Shell International E&P, and Erdem Idiz and Elise
Leenaarts, Shell Global Solutions International, prepared for the 2012 SPE/EAGE
European Unconventional Resources Conference and Exhibition, Vienna, Austria,
2022 March. The paper has not been peer reviewed.
attention, especially when it was realized that these were so-called unconventional hydrocarbons. People in the
Skne region were concerned about the
impact of the exploration activities in
these licenses. The mindset in Shell from
the start was to perform the exploration
(and, in case of success, the appraisal
and production activities) in a sustainable way with minimal impact to ensure
social acceptance.
Geology of the License Areas

The most striking structural element in
southern Sweden (Fig. 1) is the westnorthwest/east-southeast-striking trans-
62
JPT AUGUST 2012
Fig. 2The large picture shows the restored location after drilling. The inset shows the location during
drilling.
European suture zone (TESZ), a longlived polyphase fault zone. It marks the
suture between Baltica to the northeast
and Avalonia to the southwest. The zone
has been active from the Ordovician,
with the latest reversed or transpressional movements during the Late Cretaceous phase of basin inversion. Straddling the TESZ are two occurrences of
Lower Paleozoic rocks.
The Colonus shale trough (CST)
is one of the more distinct structural
units in Skne. It is an elongated, northwest/southeast-trending, fault-bounded
trough, which is defined by the deep
Kullen-Ringsjn-Andrarum fault zone to
the northeast and by the Fyledalen fault
zone to the southwest. It stretches diagonally (northwest/southeast) through
Skne and can be traced into the Bornholm gat, where it terminates against
the Rnne graben. The CST is dissected by numerous faults, and the internal, smaller-scale fault system exhibits northwest/southeast and northeast/
southwest-trending faults resulting
in numerous, wedge-shaped, slightly
tiltedtroughs.
The Hllviken graben (HG) is located in the southwest-most corner of Skne
and the immediate offshore area. It is a
large fault block bounded to the south-
64
west by the resund fault and to the east

by the Svedala fault, of which the latter is
a major tectonic boundary between the
HG and the Skurup platform to the east.
maturity, and gas content of

thealum shale.
The aim of this work program was to
increase the understanding of a potential
shale gas play in the alum shale.
Defining the Work Program

The first phase of exploration aimed
at gathering basic data regarding the
shales. Although there was knowledge
about the thickness, lithology (mineralogy), richness, and maturity, all this
information stemmed from literature. A
low-impact data-gathering acquisition
was designed.
After a period of several months, the
following work program was designed:
Acquisition of 80 km of 2D
seismic over the CST. The
geophones were pulled on
sledges on the roads in the area,
with a vibroseis source. The
objective was to map the top of
the alum shale.
Drilling three exploration wells
down to the Middle Cambrian
Hardeberga sandstone. Modern
cores and logs would be
acquiredhere.
Extensive geochemical and
mineralogical analysis and
gas-desorption measurements
toestablish the richness,
Executing the Work Program

Seismic. The objective of the acquisition program was to pick at least three
well locations from the seismic. A lowimpact, pulled-array seismic method
was chosen. The seismic was acquired
by towing a vibroseis and landstreamer along public roads. The work is performed on tarmac roads and treated as
moving roadworks, with corresponding
warning signs and coordination with the
road authorities. Small public roads were
used to avoid hindrance to the traffic and
negative impact on the seismic quality;
the roads selected were as straight as
possible. A detailed health, safety, and
environment plan was prepared before
the operations, and information was
provided to the mining inspector. A leaflet, detailing the seismic operations, was
handed out to all the house owners along
the roads.
Wells. The three selected well locations
were called Lvestad A3, Oderup C4, and
Hedeberga B2.
JPT AUGUST 2012
Before drilling, notifications were

sent to the affected municipalities, detailing the site preparation, the work program, emissions, and other factors. The
municipalities could approve, invoke
extra precautionary measures for, or
appeal against the drilling. If appealed,
the matter would go to the Country
Administrative Board for its ruling; in
the case of the second well, this process
caused a delay of several months.
The target depth was selected to
enable the use of a truck-mounted rig
for a small footprint. Both the location
layout and the preparation were chosen
to ensure minimum impact, removing
top soil and placing impermeable membrane and geotextile below the drained
gravel surface. The rainwater was collected, transported from location, and
treated as waste. Also, the gravel from the
location was checked post-drilling and,
although not contaminated, was treated as waste. The well design and use of
drilling fluids were very conservative, to
mitigate any concerns about contamination of the aquifer while drilling. An additional casing string was placed as soon as
the well was drilled below aquifer depth,
avoiding any communication from alumshale fluids to the aquifer through the
borehole. After the drilling was finalized,
the well locations were restored to their
predrill condition (Fig. 2).
approximately 94% methane and some

ethane, propane, and carbon dioxide. Isotopic analysis for the alum-shale
gas samples indicated that the gas is of
thermogenicorigin.
TOC contents for the samples
ranged from 3 to 16% by weight and
averaged 7%.
Total porosity was well-developed
in the alum shale and averaged approximately 6.5%, excellent for a shale-gas
reservoir. However, water saturations

were also high and averaged approximately 80%. The water may not be
mobile, but it decreased the gas content
of the reservoir. Permeabilities averaged
to approximately 40 nanodarcies.
Play Evaluation
The geochemical analysis of the alum core
data confirmed the data from literature
on thickness of the shale (average approx-
Geochemical Analysis. Canister-gascontent measurements were performed

on samples from the alum shale, starting
with the rig location. Density and totalorganic-carbon (TOC) content were
determined for all canister-gas-content
samples. Shale rock properties were analyzed on samples to determine bulk density, crushed density, gas-filled porosity,
total porosity, fluid saturations, grain
density, and matrix permeability.
The average total canister gas content of the samples was substantially
less than the total storage capacity and
the adsorbed-gas-storage capacity for
each isotherm measurement temperature. Total gas-storage capacity for the
alum shale was estimated with methane isotherm data to approximately
75 scf/ton, indicating that the reservoir
wasundersaturated.
The expected initial gas composition from the alum shale included
JPT AUGUST 2012
65
imately 80 m), with a very high TOC content and good gas-storage capacity and
good porosity, although with relatively
low matrix permeability. The vitrinitereflectance-equivalence (VRE) (from 1.7
to >2%) and pyrolysis data indicate the
alum shale to be post-mature, with very
limited potential to generate hydrocarbons further (excellent source rock has
produced the most it could).
Canister degassing measurements
show total average canister gas contents for the alum shale of approximately 30 scf/ton; however, this is mostly
released during the crushing phase of
the gas measurements (approximately 80%). The average total canister gas
content of the samples is substantially
less than the total storage capacity, indicating that the reservoir is undersaturated. This is further supported by the
very high water saturation (approximately 80%) and, as a result, a low gas-filled
porosity. The data are consistent and,
unfortunately, condemning for the alum
as a commercial shale-gas play in Skne.
Working in Skne
All of the technical work can be managed,
but listening to the concerns of the people in the area is very important, too. The
Skne region has some of Swedens most
sensitive natural areas. Some of the people in the region were concerned about
the impact of the drilling activities on
their lives and the environment.
To mitigate some of this impact,
Shell took the following approach during
the drilling of the three wells: Sound barriers were placed in different directions,
and light was reduced during the night.
Shell reduced transport in the morning,
evenings, and weekends. A small truckmounted drill rig was used to minimize
the size of the operation and the impact
on the local communities.
Various town hall meetings were held
for the general public. But, most importantly, representatives also knocked on
residents doors, engaging with close to
50 households in the direct vicinity of the
wells before and during the drilling phase.
Often only after meeting with people sev-
eral times did the residents reveal what

was on their minds.
All neighbors were offered the
opportunity to receive updates of the
drilling operations by means of text
messages; the intent was to offer a nosurprises, high-trust approach. Shell also
issued a bimonthly newsletter to more
than 500 stakeholders, which was also
very well received. Also, more than 200
visitors visited the drilling sites, and this
was found to be the most effective way to
engage residents.
Conclusions
A low-impact derisking strategy was
designed to evaluate the shale-gas potential of the Cambro-Ordovician alum
shale in southern Sweden. The geological
boundary conditions for a shale-gas play
were confirmed in the three wells drilled
in the licenses, but low gas saturations in
the shale limited the potential of a commercially viable play. On the basis of
these results, Shell decided to relinquish
the area. JPT
Application of Novel Technologies

Helps Unlock Deep Omani Gas
ith unique geomechanical,

reservoir, and geological
properties, some of the large gas-bearing
prospects within the Fahud basin in the
Sultanate of Oman require innovative
drilling and completion practices.
A revised drilling and completion
workflow, with specific technology
deployment and operational flexibility,
has been developed in order to account
for such reservoir complexity.
Introduction
Early Paleozoic nonassociated-gas fields
operated by Petroleum Development
Oman in Oman have traditionally comprised good-reservoir-quality sandstones located on three- or four-way
dip-closed structural highs. While gasexploration success has continued since
2005, discoveries have been restricted to
much poorer reservoirs.
Successful continued exploration,
appraisal, and further maturation, especially as exploration is also extended into
basin-center locations, pose significant
challenges given the depth (high temperature and high potential reservoir pressures) and reservoir quality [porosities
ranging from less than 3% to 10%, with
(ambient) permeabilities ranging from
0.001 to 1 md].
Following a successful completion
of a regional basin-evolution and burial history study, a well campaign mainly
targeting the Amin-Nimr section in the
Fahud Salt basin was designed. The target reservoirs of the Amin formation and
Nimr group are Cambro-Ordovician in
age and are separated by the Angudan

unconformity, estimated to represent a
hiatus of up to 20 million years.
The Amin and Nimr units are both
recognized in the sedimentary basins of
north and south Oman, but they have
widely differing properties. The Amin formation is a high-net-to-gross-ratio, continental succession deposited in alluvial-/
fluvial-fan, sabkha (wet and dry), aeolian,
and fluvial sheetflood/sand flat environments, generally with a high water table.
The underlying Nimr group comprises
two formations, a unit comprising fluvial
and lacustrine/playa deposits overlain by
a unit comprising large-scale coarseningupward fluvial deposits.
New Operating Model

Past reservoir-characterization methods
are no longer sufficient when appraising
low-permeability gas reservoirs where
performance is directly linked to reservoir quality and the effectiveness of the
selected method of reservoir stimulation.
Several technologies have been
applied recently in Oman to improve the
understanding of tight gas opportunities, and these include the incorporation
of advanced drilling practices; improved
understanding of subsurface environment and hydraulic-fracturing design
and methodology; hydraulic-fracturing
evaluation; and well-completion considerations from a hydraulic-fracturing and
subsequent-well-production standpoint.
Subtle changes in tight-gas-reservoir
propertieswhether from petrophysical, fluid-saturation, gas/water-ratio,
condensate/gas-ratio, or geomechanical
SPE 152436, Application of Novel Technologies Helps Unlock Deep Omani Gas, by
Andreas Briner, SPE, Joe Curtino, and Hisham Al-Siyabi, Petroleum Development
Oman, and Tobias Judd, SPE, Schlumberger, prepared for the 2012 SPE Middle East
Unconventional Gas Conference and Exhibition, Abu Dhabi, 2325 January. The
paper has not been peer reviewed.
standpointscan result in a large difference in determining productive and nonproductive intervals. Specifically, understanding rock mechanics will enable
better prediction of how formations will
fracture, and combining this with the
reservoir profile will allow for a prediction of subsurface capability with respect
to the planned lower completion (well
type and hydraulic fracturing).
Therefore, an appropriate datagathering and modeling strategy was
developed to improve local reservoir
understanding, and this included
The running of a full openhole
log suite
Collection of reservoir core
for geological-, reservoir-, and
mechanical-property laboratory
measurements
The development of a morerobust petrophysical model
incorporating actual well data
with core data and comparing
this with offset-well data
The inclusion of underbalanceddrilling (UBD) information
with advanced gas-sampling
techniques to help confirm the
presence of hydrocarbon for
hydraulic-fracturing application
The development of a
geomechanical model on the
basis of the integration of
available log, drilling, borehole,
core, pressure, and petrophysical
data that results in the ability
to identify perforating and
hydraulic-fracturing stage
selection better
New Technology
Drilling Practices
UBD. Industry experience shows that
tight gas exploration and appraisal wells
historically involve lengthy multiyear
multiwell programs because of inconclusive results from static logging, coring,
JPT AUGUST 2012
67
and well-testing operations. Conventional drilling, stimulation, and well cleanup

typically fail to characterize pay unambiguously and produce hydrocarbons to
surface. UBD offers a possible solution
for better-quality reservoir evaluation
and for demonstrating any unimpaired
potential flow.
The first well in which UBD was
implemented measured flow while drilling, and a short UBD production and
buildup test was conducted. The technical success of this exploration project resulted in the planning of more
underbalanced exploration wells on
neighboring prospects, some of them
with even deeper reservoirs and greater
pressureuncertainties.
The results of these subsequent
UBD wells were mixed; the organization
went through a steep learning curve in
applying an appropriate level of drawdown and using the correct drilling fluid.
However, when applied successfully, the
data obtained from the flowmeter were
instrumental in demonstrating the presence of natural gas and the flow potential
of the reservoir unit.
Advanced Mud-Gas Extraction and
Analysis. In normal overbalanced operations and using standard equipment,
mud gas is extracted with a probe directly from the flowline or at the shaker box.
The gas entrained in the drilling mud is
extracted by a degasser and directed to
the gas-detection system, which consists of two flame ionization detectors,
one for total gas and the other for chromatography. Advanced mud-gas analysis benefits from a more sophisticated
mud-gas extraction. The mud gas that is
measured is ideally extracted at a constant volume. Often, a mass spectrometer is used in addition to or in combination with the gas chromatograph. The
mass spectrometer allows for analysis
of additional carbon components and
other hydrocarbon and nonhydrocarbon
components, such as helium, hydrogen,
benzene, and toluene.
Integrated Single-Well
Geomechanical Understanding
It is well documented that acoustic measurements can be used to evaluate rock
properties in the near-wellbore region.
Stress profiles can be inferred from
68
sound speeds, with anisotropy measurements yielding better stress profiles that can represent in-situ stress profiles better. Historically, local isotropic
measurements underestimated these
stressmagnitudes.
The knowledge of anisotropy orientation and magnitudes can significantly aid geomechanical application in
terms of selecting the correct interval
for hydraulic-fracturing application with
the assumption that biwing fractures are
created. Additionally, for long-term fielddevelopment plans, the application of
hydraulic fracturing will result in drainage patterns of elliptical shape and the
understanding of stress direction will
allow for the proper well orientation and
minimize the untouched drainage gaps.
Furthermore, the interpretation of the
dispersion curves demonstrates stressinduced shear anisotropy, which can be
compared with the image logs to confirm
maximum-stress direction.
The end product of data collection
such as log techniques and core measurements and their integration should
result in a product that affects zonal
selection for perforating and, ultimately,
hydraulic-fracturing performance. The
methodology for constructing a geomechanical model includes estimating the
strengths, stresses, and pressures of the
stratigraphic column as a function of reservoir depth, and the model can be validated through simulation.
Hydraulic Fracturing
The treatment well was planned to consist of multiple hydraulic-fracturing
treatments in which, during the first
fracturing treatment, more than 1,000
microseismic events were recorded, at
least 270 of them being classified as highquality events. The map view of events
shows the fracture azimuth in line with
the local principal-stress orientation;
however, the side view indicates that all
of the microseismic events occurred significantly above the perforation interval.
Upon further investigation, radioactivetracer signatures were seen across the
entire section, specifically in the upper
part, which supported the conclusion
that the fracture grew upward. Despite
the nonfavorable results, microseismic
monitoring demonstrated the benefits
of this technology in a local setting and,
when deployed in future wells, will give

valuable insight.
Well Completion
Reservoir conditions, including fluid
types, liquid ratios, pressures, temperatures, and rates, will have an effect
on the final type of completion design
selected and installed. The most common technique used to evaluate reservoir and fracture parameters is pressuretransient analysis (PTA). However, in
low-permeability reservoirs, PTA is often
a time-intensive process because of the
slow reservoir response.
Instead, sustained production flow
tests combined with actual reservoir
parameters collected from prefracture
injections and hydraulic-fracturing properties will reduce the uncertainty in reservoir deliverability. Once significant liquid
accumulation has occurred, the ability to
continue with a valid well test becomes
difficult until a well-intervention solution is implemented. Often, these effects
can be detected by monitoring the production history continuously and can be
confirmed by obtaining periodic flowing
and shut-in bottomhole-pressure gradient profiles during well-production operations. Therefore, the following design
parameters for the well-test program
should be considered:
Post-fracture cleanup
Early flow rates for individual
zones
Potential commingled short-term
test
Shut-in and buildup to help
define reservoir continuity and
calculate original gas in place
Once an early production facility
becomes available, long-term production
testing will commence.
A potential solution to this problem includes the installation of a velocity
string, which is a small-diameter tubing
string inside the production tubing. This
tubing string may be either coiled tubing
or jointed pipe, and it effectively reduces the flow area, thereby increasing the
flowvelocity.
Conclusions
Gathering information early in
the appraisal process opens the
opportunity to affect the fielddevelopment plan positively, with
JPT AUGUST 2012
Fig. 1This template is an example of petrophysical-data, advancedmud-gas-analysis, and geomechanics-data integration.
the modeling and understanding

applied on a large number of
wells.
Laboratory core measurements
previously viewed as unnecessary
will be needed to measure
mechanical and petrophysical
properties to complete a
thorough geomechanical and
reservoir characterization.
Deeper and more-complex
tight gas reservoirs will
require additional reservoir
characterization in the form
of geology, petrophysics,
geomechanics, and reservoir
understanding to optimize
drilling and completion methods.
The integration of these data sets
JPT AUGUST 2012
is crucial. A template of how this

has been achieved is shown in
Fig. 1.
Hydraulic-fracturing success
and understanding are crucial
to overall project performance.
However, treatment execution
is only one component of the
overall process, and, when the
main job cannot be executed,
it is often because of unknown
reservoir factors rather than
completion and equipment
limitations.
Microseismic fracture mapping
and post-fracture diagnostics are
needed to improve understanding
of hydraulic fracturing to optimize
well performance and costs. JPT
TECHNOLOGY
FOCUS
Brian Skeels
is emerging
technology
manager with
FMC Technologies.
He has nearly
30 years of
experience in subsea completion and
pipeline design and installation. Skeels
serves as a technical subsea adviser
and strategic-planning specialist
for frontier technologies and new
business opportunities and is program
director for FMCs high-pressure/hightemperature development activities
worldwide. He holds more than 13
patents. Skeels holds a BS degree in
mechanical engineering from Cornell
University and an MS degree in ocean
engineering from the University of
Rhode Island. He has served on several
SPE committees and currently serves on
the JPT Editorial Committee. Skeels is a
licensed professional engineer in Texas.

OTC 23317 Improvements to Deepwater
Subsea Measurements RPSEA Program:
ROV-Assisted Measurement by E. Toskey,
Letton-Hall Group
OTC 21324 Introduction to Remotely
Operated Vehicle Assisted Subsea
Sampling by Christopher Mancini,
Oceaneering International, et al.
SUBSEA TECHNOLOGY
The post-Macondo era is starting to write a new chapter in subsea history. Subsea is
still one of the more popular development methods offshore, but the reservoirs being
tapped are becoming more complex and more difficult to interpret remotely than ever
before, with regulatory authorities scrutinizing and challenging the norm of operations and surveillance. To add to the mix, alternative petroleum sources (such as shale
gas and shale oil) are entering the marketplace to compete for market share. Recent
technical papers are falling into the following two camps in response to these drivers:
Increasing improved oil recovery (IOR) from more-complicated reservoirs
remotely subsea but having to do it at a lower cost or in a technically clever
manner to compete with a burgeoning market influx from alternative sources
A renewed vigor toward remotely operated vehicles (ROVs), performing more
intervention tasks for IOR beyond the traditional hardware performance or
assistance in installation or observation
IOR continues to be the engine of recent subsea-technology development as it
grows and matures. But, it is the second camp that took me by surprise. ROV technology improvements have been plodding along at a modest pace because of the economic pressure of a commodity-driven service market. Modest revenues could not support step-change technology investments. However, the IOR market appears to be the
source of renewed interest in expanding ROV technology. IOR needs more of a handson ability to continue its technology growth and has turned to ROVs for the care and
feeding of subsea processing.
So, this crop of technical papers reflects the expected and the unexpected in subsea technology. JPT
SPE 152188 BC-10: The First Successful

Replacements of Caisson ESPs in
Deepwater Brazil by David Harris,
Baker Hughes, et al.
OTC 23178 Pazflor SSPS Project: Testing
and Qualification of New Technology
A Key to Success by Steinar Eriksen,
FMC Technologies, et al.
OTC 23218 High-Pressure/HighTemperature-Sensor Development and
Qualification by J.E. Hall, Letton-Hall
Group
70
JPT AUGUST 2012
Deepwater Well Operations Could Benefit

From Advances in Space Robotics Technology
number of similarities exist

between applications in
spaceandthose in the oil and gas
industry. In both cases, systems are
deployed at remote locations with
limited access for intervention,
maintenance, or repair. The operational
environments are often hostile, with
harsh temperatures and pressures
and corrosive materials. Reliability
of systems is extremely important
in space and in the oil and gas
industry. Operations in the respective
environments have high risk, and
failures can be catastrophic.
Introduction
As the number of wells in remote and hazardous environments increases, the technologies to explore, drill, produce, and
handle accidents associated with them
need to evolve to address the increased
complexity and difficulty. Dependence
on robotics technologies and moresophisticated instruments is increasing.
Enhancing existing systems with greater intelligence, autonomy, and reliability
should help relieve human operators of
the tedious and time-consuming aspects
of operations. More-precise data from
new instruments, improved models of
environmental conditions, more-capable
actuators, and greater sensory perception
of these remote environments can extend
operational capabilities, improve safety
and reliability, reduce the environmental
impact, and reduce costs ofoperations.
(a)
(b)
Fig. 1The hydrothermal vent biosampler can be deployed as a

standalone instrument package (a). It can also take samples (b) as
part of a submersible vehicle.
Space Robotics Technologies

Science and Instruments. The Jet Propulsion Laboratory ( JPL) draws on
decades of development of instruments
and sensors that have been deployed successfully to planetary surfaces as in-situ
instruments and to the far reaches of
our solar system. The technical requirements for in-situ instruments often push
the limits of engineering capabilities for
operation in these harsh environments.
Thus, the technological solutions often
redefine the state of the art, which helps
ensure efficient operation in the operating environment.
JPLs design of science instruments
and sensors for unique planetary-surface
environments enables translation of engi-
This article, written by Editorial Manager Adam Wilson, contains highlights of

paper OTC 22989, Space Robotics Technologies for Deep Well Operations, by
Hari Nayar, Khaled Ali, Andrew Aubrey, Tara Estlin, Jeffery Hall, Issa Nesnas,
Aaron Parness, and Dean Wiberg, Jet Propulsion Laboratory, California Institute
of Technology, prepared for the 2012 Offshore Technology Conference, Houston,
30April3 May. The paper has not been peer reviewed.
Copyright 2012 Offshore Technology Conference. Reproduced by permission.
neering heritage to capabilities necessary

for extreme terrestrial environments.
Such stringent environmental requirements include wide ranges of operating
temperatures, pressures, humidity, and
corrosive conditions. Just as important
to the robust design and engineering of
planetary instruments is minimization of
mass and power for every flight instrument. Thus, the small size and low power
demand necessary for deployment on
autonomous underwater vehicles (AUVs)
are identical to the engineering goals for
planetary instruments.
Requirements for persistent operation in marine environments include
operation at low temperatures (e.g., 4C,
ocean-bottom water temperatures), at
high temperatures (hydrothermal-vent
environments), at high pressures, and
under corrosive conditions (e.g., seawater). Marine operation scenarios in
deep- or shallow-water environments
are most relevant to currently funded
work examining exploration of salinewater oceans on Europa and Enceledus
or hydrocarbon lakes on Titan. JPL has
begun to adapt existing technologies
The complete paper is available for purchase at OnePetro: www.onepetro.org.

JPT AUGUST 2012
71
Fig. 2An in-pipe robot built by JPL for natural-gas pipelines.
developed for in-situ planetary science to

aqueous environments such as the deep
sea. JPL is currently pursuing projects
for in-house development of marine sensors including mass spectrometers for
hydrocarbon detection and attribution,
laser-induced-fluorescence moleculardetection strategies for seawater characterization in microscale and macroscale
form factors, and a hydrothermal-vent
microbial biosampler. These new technologies are in development in a form
factor consistent with accommodation
as a payload aboard an AUV platform.
Thus, the small-mass and -size requirement for in-situ instruments are reflected in these underwater instrument
developments. These technology developments run in parallel with previous
efforts toward underwater technologies
carried out at JPL, including the hydrothermal vent biosampler (Fig. 1) and the
ultraviolet fluorescence/Raman chemical
sensing system.
Modeling, Simulation, and Visualization. At JPL, mission design and planning, systems and component design,
and development and operations make
significant use of modeling, simulation,
and visualization. Modeling, simulation,
and visualization are important elements of the development of systems for
the following reasons:
Missions span a large range of
distances and time scales that
cannot be replicated physically.
Gravitational fields,
temperatures and pressures,
caustic atmospheres, and other
conditions are difficult or costly
to duplicate physically.
Simulations can help evaluate
new concepts or operational
scenarios without the cost of
building or deploying them.
Monte Carlo and parametric
analyses through simulations can
be used to optimize systems and
plans.
72
Simulations can be used to share

results among distributed teams.
Simulations can be used to
validate and verify analytical and
physical-analog studies.
Simulations help visualize and
predict performance of systems
and operations.
Visualization from real-time
telemetry during operations can
provide intuitive displays of data.
These reasons for the use of modeling, simulation, and visualization apply
for the oil and gas industry as well.
Modeling and simulation of dynamic phenomena in the oil and gas industry helps in understanding and predicting their behavior and in developing
techniques for influencing or controlling them. Some examples of the benefits
from modeling, simulation, and visualization could include
Better environmental impact
modeling of hydraulic fractures
or terrestrial and subsurface
spills
Improved remotely operated
vehicle/AUV control through the
use of model-predictive control
and drag-and-tether models
More-precise directional drilling
More-precise floating
production, storage, and
offloading or other surface
platform control systems
Software Architectures for Autonomous Systems. From a software-centric
view, a robotic system has three main elements: the ground software system with
which the operator interfaces to control
and command the asset; the onboard
software system, which embodies the
intelligence; and the target platform.
An important consideration for the
ground and onboard system is its software architecture. Principled approaches
to the development of software systems
are important for reasons that include
InteroperabilityIn addition
to supporting both physical
and simulated platforms,
interoperability of the
software across a number of
heterogeneous physical platforms
increases software reusability
and, hence, reliability. Moreover,
it enables the interoperability
of sensors, actuators, and
electronics from different
vendors with minimal impact to
the software system.
FlexibilityHaving high-level
command and control as well
as finely granular control over
each component is particularly
important for assets that have
to operate reliably without the
advantage of direct access to the
asset or the environment.
Technology integrationA
properly architected software
system enables the integration,
maturation, and validation
of new capabilities and
technologies. It also enables the
comparison of the performance
of competing technologies.
ScalabilitySoftware
architecture helps manage
complexity while supporting
functional enhancements.
MaintainabilityThe ability to
modify, upgrade, and extend
current capabilities is important
to handle unforeseen problems.
CostReducing the cost
of software development
is particularly important
when supporting a fleet of
heterogeneous robotic assets.
Mobility and Manipulation. A paradigm shift was made in the National
Aeronautic and Space Administrations
planetary exploration missions when JPL
built and operated the Sojourner rover
as part of the Mars Pathfinder mission in
1997. Sojourner was a six-wheeled mobile
robot that carried scientific instruments
and cameras that explored the rocks and
regolith on the surface of Mars. Having
mobility provided a dramatic increase
in the amount and variety of data that
could be collected by a single mission in
comparison with previous lander-only
JPT AUGUST 2012
planetary missions. Another step forward was made when JPL developed and
flew the Mars Exploration rovers with
the capability not only to roam the surface of Mars but also to interact with the
environment using a robotic arm.
JPL has also prototyped in-pipe
robots for the natural-gas industry. One
such platform, shown in Fig. 2, uses a
segmented approach with an inchworm
method of locomotion. A three-degreeof-freedom joint between each of the
segments allows the robot to navigate
around tees and elbows in the pipe. To
stay in place, the robot uses inflatable airbags that push against the interior of the
pipe so that the robot can move in either
direction, even when there is flow in the
pipeline. A turbine was also prototyped
that harvests energy from this flow to
power the robot.
The expertise that JPL has developed in mobility and manipulation for
robots could benefit a large number of
applications in the oil and gas industry.
Theseinclude
Inspection and repair inside of
pipelines
Maintenance and inspection on
the seafloor
Improved dexterous manipulation
of current robotic assets
Inspection of rig structure above
and below the waterline by
climbing or rappelling robots
Autonomous task execution
Sensing and Perception. JPL has developed and adapted several sensing and
perception technologies for space and
robotics applications. Many of these
technologies are also relevant to the
energy industry. Some good examples
include visual odometry; visual target
tracking; simultaneous mapping and
localization; and techniques for force,
position, and proximity sensing.
Visual odometry is a technique for
measuring the motion of a vehicle from
multiple pairs of images taken by the
vehicles own visual sensors. It uses the
disparity between features in images
from two horizontally displaced cameras to build a 3D model of the environment. Vehicle motion is determined from
changes in the location of features from
one pair of images to another.
JPT AUGUST 2012
Visual target tracking is a form of

visual servoing of a vehicle as it approaches or maneuvers around a target. It
involves creating a template image of a
feature in an image, matching the feature from image to image as the vehicle
moves, and guiding the path selection of
the vehicle toward or around the target.
Simultaneous mapping and localization involves both building a map of the
environment and locating a vehicle in
that map as the vehicle moves. It uses
the known motion of the vehicle and its
perception of the environment as determined by computer vision, wheel odometry, and other sensors to incrementally
generate the maps and localize the vehicle on the maps.
Onboard Intelligence
JPL technologies for onboard intelligence
and high-level autonomy are playing an
important role in current JPL missions
and robotic applications. Examples of
such technologies include automated
planning and scheduling systems, which
provide capabilities for spacecraft command sequencing and resource management, and onboard data-analysis
systems, which provide capabilities for
analyzing gathered data and identifying
high-priority data features that warrant
further investigation. These systems have
been used on a number of deep-space
and Earth-orbiting missions as well as
in Earth-surface applications, such as
AUVs performing wide-area surveys in
the Earths oceans.
Conclusion
The adaptation of these and other space
technologies to the oil and gas industry could yield a number of benefits.
Improved models of deployed systems
and of the environment would provide
greater understanding of the underlying processes and enable moreefficient operations. Better perception
and algorithms for providing situational awareness of remote systems should
lead to more-informed decisions. Routine and well-defined procedures could
be relegated to automated processes.
Complex resource management under
dynamic conditions could be handled
more optimally by planning and execution systems. JPT
Separation Technology Shrinks To Fit

Subsea Development in Deep Water Better
eepwater discoveries have

driven the development ofnew
compact separation technologies,
a core aspect of subsea processing.
Compact separators are much smaller
than conventional separators and have
the potential to significantly reduce
capital expenditure for deepwater
developments. Unfortunately, reducing
the size of separators generally reduces
the separation performance and the
ability to handle changes in flow rate
and composition. Therefore, it is
essential to find an acceptable balance
between the realized reduction in
overall capital expenditure and reduced
tolerance to changing conditions.
Introduction
Value Drivers for Subsea Gas/Liquid
Separation. Subsea gas/liquid separation has proved to provide strong business incentives with enabling capabilities, including (1) more-efficient liquid
boosting, (2) longer-range gas compression from subsea to onshore, (3) costefficient hydrate management, (4) effective riser slug depression, and (5) access
to challenging field developments that
otherwise would be abandoned or not
developed because of their remote location, harsh conditions, longer tie-back
requirements, or low reservoir drive.
Compact Separation and Available
Technologies. The motivation for making compact separators is to improve
project economics. Large vessels for

deep water are heavy and affect the overall cost of the subsea station. Retrievability of separators is affected by module
weight and the availability of installation
or intervention ships, which can affect
project economics.
Reducing the size of separators and
their control volume generally reduces the separation performance and the
ability to handle changing flows. Even
if compact and ultracompact separators
minimize the capital expenditure for the
subsea station and increase the availability for retrieval, the risk of nonconformance with separation requirements is
increased, especially under slugging conditions. Consequently, the risk for loss of
revenue because of reduced separation
performance is increased compared with
that for a large separator.
Currently, deepwater subsea separation and boosting applications have been
met only by electronic-submersiblepump (ESP)/caisson technology. The
caisson is a tall separator that is installed
in a dummy well. The system has a tangential inlet to a tall narrow separator
that accommodates slugs, provides surge
volume for the separated production
fluids, and supports the ESP.
The vertical annular separation
and pumping system (VASPS) is similar to the caisson separator. The VASPS
has an internal helix between the pressure housing and the inner gas annulus in the tall separator, which is also
installed in a dummy well. Even though
OTC 23223, Compact Separation Technologies and Their Applicability for Subsea
Field Development in Deep Water, by A. Hannisdal, R. Westra, and M.R. Akdim,
SPE, FMC Technologies; A. Bymaster and E. Grave, SPE, ExxonMobil; and D. Teng,
Woodside Energy, prepared for the 2012 Offshore Technology Conference, Houston,
30 April3 May. The paper has not been peer reviewed.
the ESP/caisson and VASPS technologies

have several subsea installations and are
attractive for future developments, the
industry is looking for alternative technologies to meet the requirements for
deepwaterapplication.
The gas/liquid cylindrical cyclone
(GLCC) is well documented and has
more than 1,000 installations, mainly
onshore. The GLCC is a compact and
lightweight vertical cyclone with a tangential inlet. In its original design, the
GLCC is a cyclone with minimal or no
internals and a downward-tilted (27)
inlet pipe to force the liquid level below
the inlet zone. This is required to retard
liquid carryover, which could be problematic with a perpendicular inlet. Being
compact, performance under slugging
conditions is expected to be problematic.
Consequently, a slug-damper system has
been developed. The slug-damper system
is an inlet flow conditioner (pipe configuration) that provides volume for liquid
accumulation. Under stable flow, the gas
carryunder should be less than 510%
gas in liquid.
Cyclonic inline separation technologies have received much attention because of the considerable weight
and space savings that can be realized.
For gas/liquid separation, three applications of this technology are available: a degasser for removing gas from
liquid-dominated streams, a deliquidizer
for removing residual liquid from gasdominated streams, and a phase splitter for bulk separation of gas and liquid (Fig. 1). Combination of the three
technologies has had approximately
40 installations and is emerging as an
attractive option for topside, remote, and
debottlenecking applications.
All inline cyclones are equipped
with a static mixer upstream of a stationary swirl element, both of which are
positioned within an otherwise ordinary pipe spool. The function of the stat-

74
JPT AUGUST 2012
Mixer
element
Gas
outlet
Gas
outlet
Swirl
element
Antiswirl
Mixer
element Swirl
element
Antiswirl
Liquid
outlet
Gas
scrubber
Gas
recycle
Mixer
element
Liquid
boot
Liquid
drain
Swirl
element
Liquid
outlet
Liquid
outlet
Fig. 1Schematic of the inline cyclonic test units: phase splitter (left), deliquidizer (middle), and degasser
(right).
ic mixer is to ensure even distribution

of the dispersed phase in the continuous phase. For the deliquidizer, the thin
film of liquid formed on the cyclone wall
is captured within the annular space
between the gas exit and the inner wall
of the cyclone. The liquid is drained into
the liquid-collection boot, where it is
allowed to degas. Gas entering the liquid boot is routed back to the primary
separation chamber through the gasrecycle line and reinjected radially into
the lower-pressure gas core. For the
phase splitter, the gas core is extracted through the center of the stationary
swirl element and sent to the gas outlet, whereas the liquid is sent through
the antiswirl element. In the degasser,
the gas core formed in the center of the
primary separation chamber is extracted and sent to the gas scrubber. Dispersed liquid separates and is drained
back into the main flow upstream of the
antiswirlelement.
Subsea slug catchers may provide
gas/liquid separation for boosting. Such
slug catchers have a beams configuration consisting of superimposed piping.
Large finger-type slug catchers, or beams
configurations, have been highlighted as
potential deepwater solutions.
The basic principle of the multipipe
technology is to distribute the multiphase flow into several parallel pipe sections. This will dampen flow fluctuations
76
and provide a short settling distance for

droplets and bubbles (Fig. 2). The short
settling distance and large interfacial
area are generally favorable features for
improving efficiency of gas/liquid separation. The slug catcher has an inlet followed by a header that distributes the
flow into several parallel branches. Flow
stratifies in the beginning of each branch
and is distributed to the gas pipe and the
liquid pipe through a tilted downcomer.
The gas pipe has an upward-tilted section
to a common gas header so that liquid
accumulating in the gas pipe can drain
into the liquid pipe through the escape
pipe. Gas produced to the liquid pipe
can escape through the same pipe to the
gasheader.
work proved the concept of the compact

finger-type slug catcher, provided optimization of the design of the inlet/outlet
headers, and provided the necessary input
for computational-fluid-dynamics model
development. Twenty-seven separation
tests at different conditions wererun.
The second work package involved
establishing a sand-handling strategy for
the multipipe configuration. A singlebranch slug catcher was tested in a lowpressure sand-handling loop with air, oil,
and water. Here, 70 tests were run to analyze sand buildup and various desanding designs and operational strategies.
High-speed cameras and particle-size
and gravimetric analyses were used to
find the optimalsolution.
Scope of Work
Experimental
Demo 2000 is a program from the

Norwegian Ministry of Petroleum and
Energy. One project in the program,
the Next Generation Deepwater Subsea Gas/Liquid Separation System,
is aimed at qualifying compact-gas/
liquid-separation components and systems to enable economic recovery from
deepwaterdiscoveries.
The first work package in the project
focused on the multipipe configuration. A
transparent slug catcher with four branches was designed and analyzed for flow distribution and dynamic behavior in a lowpressure test loop with air and water. This
Facilities for High-Pressure Separation

Tests. A test loop was constructed in a
test facility in Drammen, Norway. The
test rig consists of three main items: a
high-pressure loop for testing of separation equipment, a low-pressure water/
glycol heating/cooling loop for temperature control, and a separate compressor system for pressurizing the main test
loop before fluid circulation. The loop has
an advanced control and logging system
with a total of 11 temperature sensors, six
pressure sensors, 12 differential-pressure
sensors, eight Coriolis flowmeters, two
vortex flowmeters, one orifice flowmeter,
JPT AUGUST 2012
Inlet
tested with a single branch. On the basis

of results from these standalone tests,
two systems were selected for further
testing, consisting of either the multipipe
slug catcher or the phase splitter as the
primary bulk separator, with the deliquidizer and degasser treating the gas and
liquid streams from the primary separator,respectively.
Distribution
header
Gas
header
with outlet
Liquid
header
with outlet
Downcomer
Gas pipe
Escape
pipe
Liquid
pipe
Fig. 2Schematic of the multipipe finger-type slug catcher.
and three nucleonic density meters. In

total, 394 parameters are logged continuously by the system.
Test Section Configurations and Experimental Conditions. Tests were con-
ducted on individual compact separators,

including the multipipe slug catcher, the
phase splitter, the deliquidizer, and the
degasser. The phase splitter was tested
with and without a downstream compact
gravity separator. The slug catcher was
Results and Discussions

Performance of Primary Separators.
Cyclonic Phase Splitter. The performance of the cyclonic phase splitter
depends on the selected split of incoming multiphase flow to the liquid and gas
outlets. Cyclones are generally operated
with a control valve by adjusting the pressure drop from the inlet to the gas outlet
and the pressure drop from the inlet
to the liquid outlet. The ratio between
these two parameters can be described
as the differential-pressure ratio (DPR).
If the flow rate toward the gas outlet is
increased, the pressure drop over the gas
outlet increases and the pressure drop
over the liquid outlet decreases, result-
ing in an increase in DPR. As a result,

the liquid quality improves and the gas
quality deteriorates. By adjusting these
parameters, it is possible to operate the
cyclone in different modes based on what
ispreferred.
Clean-gas mode (by reducing the
liquid quality)
Clean-liquid mode (by reducing
the gas quality)
Bulk-separation mode (neither
the gas nor the liquid outlet
is optimal; bulk separation is
achieved)
catcher, while the deliquidizer removes

any liquid carryover, thus providing clean
phases from the system. Combining the
multipipe configuration with downstream cyclones, therefore, improves the
ability of the unit to handle larger production rates.
Conclusions
High-pressure separation tests were
conducted on cyclonic separators and
a finger-type slug catcher over a wide

range of operating conditions. In total,
445 high-pressure tests were executed successfully, thereby establishing an
extensive database to be used as a reference for future technology selection and
continued comparison with other technologies. The project has enhanced confidence that subsea gas/liquid separation will play an important role in future
deepwater developments. JPT
Multipipe Slug Catcher. The gas

velocity in the inlet and gas pipe will
reach a critical point at which an excessive amount of liquid is carried by the
gas flow as re-entrained liquid droplets. The flow behavior in the slug catcher was observed through high-pressure
sight glasses. When operated below the
critical gas velocity, a dramatic improvement in gas quality is realized. Similarly, good liquid quality can be achieved
by ensuring a proper range of liquid
velocity through the liquid pipes and
outlets. Considering its compactness,
the multipipe slug catcher demonstrated surprisingly good performance under
sluggingconditions.
Performance of Systems of Primary and Secondary Separators. On the
basis of the performance of the individual separation components, two systems were selected for further testing.
The first system was equipped with the
cyclonic phase splitter as the primary separator, with the deliquidizer and
degasser located downstream treating the gas and liquid from the first
cyclone. The system performs better
than the standalone phase splitter when
operated in bulk-separation mode. The
secondary cyclones perform progressively better with increasing concentration of the dispersed phase. The system is consequently less dependent on
accurate control because the secondary
cyclones polish any carryover from the
primarycyclone.
The multipipe technology was tested both as a standalone separator and
in combination with the deliquidizer
and degasser. The degasser removes any
gas carryunder from the multipipe slug
JPT AUGUST 2012
79
Designing Retrieval System for Subsea Sensors

Accounts for Increased Numbers, Complexity
perators face increased

complexity in their subsea
operations, with up to 1,500 subsea
sensors and transmitters installed each
year. Whereas the retrieval of topside
sensors has proved to be successful,
delivering significant cost savings,
operators face maintenance difficulties
and costly interventions in upgrading
and replacing subsea sensors.
Technology has evolved to enable
operators to retrieve subsea sensors,
allowing them to better maintain
existing instruments, replace failed
ones, and install improved versions.
Such developments can save customers
millions of dollars by reducing the
cost and time required to maintain
subseaassets.
Introduction
A single production field may have 20 to
30 operating wells, with more than 40
production trees and manifolds. Each
of these assets can have anywhere from
five to 15 monitoring sensors mounted.
How can we ensure reliability of
monitoring devices? First, use highquality sensors that offer a low risk
of failure and accurate data. Second,
improve the redundancy of sensors
and transmitters. This can be expensive, however, requiring pipe spools
or retrievable modules and isolation
valves. Third, maintain the sensors,
which carries the high costs associated
with equipment mobilization (replacing a subsea component can cost up to
Fig. 1Retrieval tool and retrievable-subsea-sensor system.
USD 1 million), sourcing vessels capable of recovering a large subsea module,

the shutdown of production systems,
hydrocarbon displacement and evacuation, and the restart of production systems after sensor change out.
It was against this backdrop that
a subsea-sensor-retrieval system was
developed that is controlled by a
remotely operated vehicle (ROV), with
the goal of optimizing subsea equipment, facilitating replacement and costeffective maintenance, and reducing the
cost and time required to maintain subsea assets.
The Subsea-Sensor-Retrieval
System
Possible applications of the new system
and benefits for operators can be separated into three key areasincreasing
instrument availability and reliability,
OTC 22323, Developing a Retrieval System for Subsea Sensors and Transmitters, by
Clive Packman and Nils Braaten, Roxar Flow Measurement, prepared for the 2011
Offshore Technology Conference Brasil, Rio de Janeiro, 46 October. The paper has
not been peer reviewed.
reducing life-cycle costs and increasing

performance, and ensuring optimum
safety and environmental protection
Increasing Instrument Availability
and Reliability. The new system allows
operators to replace a measuring point
during routine ROV operations without
production shutdown and extends the
operating lifetime of subsea sensors.
Reducing Life-Cycle Costs and Increasing Performance. The retrieval
system reduces life-cycle costs through a
design in which the majority of the cost
and technology is concentrated in the
ROV tool.
Improved Safety and Environmental Protection. The system allows for
the replacement of individual sensors, significantly lowering the environmental risk involved with retrieving
largerstructures.
System Overview
Operational Steps. During retrieval, the
electronics are removed and the retrieval tool (Fig. 1) is attached. Pressure will
then be applied in front of the locking
cone to break the shear pin, allowing the

82
JPT AUGUST 2012
locking cone to slide up and the locking dogs to retract into a

flush position. Above the probe, the pressure is reduced using a
partial vacuum and the process line pressure will then force the
probe out of the mechanical fitting.
To install the new probe, pressure is applied above the
probe and it is pushed into the pipeline hub. At the end of the
fitting is the guide helix, which will oriente the probe correctly.
Once in position, the pressure will force the locking cone down
and the locking dogs apart. When all parts are in place, the shear
pins will click into position. The tool can then be removed and
the electronics and cablereattached.
The Main Components. The subsea-sensor-retrieval system
consists of four main componentsa permanently in-stalled
mechanical interface, a sensor/transmitter, the sensor retrieval tool, and the hydraulics and control system.
The Permanently Installed Mechanical Interface. The
permanently installed mechanical interface (Fig. 2) includes
sealing surfaces for the primary, secondary, and tertiary barrier. Two internal hydraulic bores enable the locking and unlocking of the probecarrier.
The Sensor/Transmitter. The sensor/transmitter (Fig. 3)
includes a probe carrier, an electronics canister, and a power/
communications cable. These are the retrievable components
of thesystem.
The Subsea-Sensor-Retrieval Tool. The sensor-retrieval
tool (Fig. 4) is designed to be operated by a standard work-class
ROV. This tool replaces the sensors during operation, providing
a metallically sealed, leakproof connection to the system where
the probe carrier isinstalled.
The Hydraulics and Control System. The hydraulics and
control system is contained within a skidded ROV retrieval-tool
basket. The skid is used to transport the tool to its location and
contains a hydraulic actuator pump for pressuring the hydraulics in the skid that controls the retrieval tool. The software
monitors and controls all of the functionality of the hydraulics
system, valves, and actuators. This software interface allows the
following functionality:
Main hydraulicsmonitoring hydraulics from the ROV
and the hydraulics in the tool basket
Probe lock/flushingcontrolling the valves that allow
either flushing of the sealing surfaces or locking of the
probe
Position indicatortracking of the probe within the
tool
Collet connectorlocking/unlocking of the collet
connector
Revolver actuatorcontrolling the rotation of the
revolver within the tool
Probe actuatorcontrolling the retrieval/reinstallation
of the probe
Challenges
Several key challenges were faced in the design and manufacture of the new system. They included the following areas:
material selection, locking mechanism, operational range,
draining liquids, probe positioning, and the hydraulic system.
JPT AUGUST 2012
Seal surface,
primary seal
(collet connector)
Seal surface,
secondary seal
(collet connector)
Seal surface,
secondary
(probe)
Pipeline hub
with guide helix
Seal surface,
primary seal
(probe)
Internal
hydraulics bores
Guide funnel
Fig. 2Permanently installed mechanical interface.
Material Selection. It was essential that

the materials selected for the tool had
ability to perform at great depths and
high pressures and temperatures.
Main Components. For the main
components of the tool, the criteria were
that they had to be light and very strong.
Titanium was chosen because titanium
alloys are lightweight and have extremely
high tensile strength, with the ability to
withstand extreme temperatures.
Moving Parts. One challenge with
using titanium, however, was the high
forces likely to be put on the moving
parts of the tool at the various interfaces, particularly the locking-cone/
locking-dogs interface. There was a
danger of cold welding, in which two
parts can become welded together without heating at the interface because of
the forces applied to them. The solution to this was implementation of a
surface treatment called nitriding.

This is a heat-treating process in which
nitrogen is alloyed onto the surface
of a metal to create a case-hardened
surface, hence removing the threat of
cold welding.
Locking Mechanism. When the probe
reaches its end position, it is locked by a
locking cone that forces the locking dogs
into the locked position and gives an axial
pretension on the primary-seal/X-ring
seal, with these locking dogs being the
main locking mechanism. In addition,
when in the locked position, the locking cone is secured by spring-activated
shear pins, which act as an independent
secondary lock. Two polymeric seals act
as a secondary barrier.
Operational Range. One of the biggest challenges in developing the tool
Transport
handle
Locking cone
was to develop seals that could seal at

690bar but still have a low enough friction to move the probe with differential pressures reduced to as low as 1 bar,
forexample.
Energized C-rings were used as the
primary seals on the back end of the tool
and between the collet connector and
the pressure vessel. Spring seals, including an advanced O-ring of hydrogenated
nitrile butadiene rubber (HNBR), were
used as secondary seals as well as in
the collet connector as a hydraulic seal.
HNBR materials have superior mechanical properties and outstanding wear
resistance in dynamic sealing applications. They can often sustain higher service temperatures, up to 180C in oil,
and are highly applicable to the oil and
gas sector where a combination of high
mechanical strength and chemical resistance is required. Finally, an X-seal was
used between the hub, tool, and probe/
hub interface.
Draining Liquids. After the attachment
of the tool, before the probe is retrieved,
a column of water will be behind the
probe. If the differential pressure across
the probe is very small (close to 1 bar)
the vacuum system will need to be used
to retrieve the probe. If the operator
tries to apply a vacuum, the column of
water will dampen the effect because of
friction in the small pipelines from the
tool to the vacuum flask. Therefore, the
water is drained by purging the tool with
nitrogen gas.
Probe Positioning. Knowledge regarding the position of the probe in the tool
during retrieval is vital. A magnetic
Locking dogs
Probe body
Guide pin for helix
21-pin
connector
Lock/unlock
handle
Primary barrier
Locking dogs
Running seals
Sensor
Secondary barrier
Tertiary barrier
(a) Electronics canister
(b) Probe carrier
Fig. 3Sensor/transmitter.
84
JPT AUGUST 2012
collar is connected onto the top of the

probe, and magnetic pickups are located
within the tool body. When the magnetic collar moves past the pickups, this is
relayed to the operator screen.
Hydraulics System. When retrieving
the probe, there is the danger of process media contaminating the hydraulicfluid-control system. The solution was
to divide the hydraulics system into two
separate systems.
System 1 takes care of everything
related to the tool and uses a water/
glycol mix of antifreeze. The system
is powered when the ROV stabs onto
the hydraulically actuated pump on the
toolbasket.
System 2 covers all valves on the
tool-basket system and is pressured by
the ROVs hydraulics directly.
Conclusions and Plans

The subsea-sensor-retrieval system is
now in its final stages of qualification
after being put through years of testing following current industry standards.
Position
indicator
Revolver
End cap
(with revolver actuator)
Pressure vessel
Collet connector
Clamp connector
Fig. 4Sensor-retrieval tool.
The first sensor that will be available

for operators will be a combined pressure/temperature sensor. This will be followed closely by a sand/erosion sensor
and then a corrosion-monitoring sensor. In the future, any sensor/transmitter
type that can fit into this format can be
made retrievable.
This will simplify the maintenance
of subsea assets, giving the opportuni-
ty for operators to upgrade or replace

subsea sensors without the need for the
costly subsea interventions that are performed today. This becomes especially
important as we move into the area of
subsea processing. This system requires
a relatively small vessel that can handle a
standard work-class ROV, with the whole
sensor-replacement operation taking
only a few hours. JPT
Autonomous Underwater Vehicles Ease

Deepwater-Field Integrity Management
ntegrity management of deepwater

fields requires routine general visual
inspections of critical infrastructure. To
date, the only way to conduct general
visual inspection is through the use
of remotely operated vehicles (ROVs).
Deepwater ROV spreads are large and
heavy, requiring large support vessels
and a significant number of personnel
at sea. The capabilities of unmanned
underwater vehicles have been
enhanced through developments in
autonomous technology, progressing to
the point that autonomous underwater
vehicles (AUVs) can now routinely
conduct general visual inspection of
subsea facilities.
Introduction
AUVs are smaller than ROVs, require less
deck space, have fewer operators, and are
free from precise-positioning requirements of the support vessel. Advances
in autonomy, coupled with unique mission sensors, greatly reduce the human
interaction required when collecting
images of oil and gas underwater infrastructure. These factors dramatically
reduce the operational cost of a deepwater inspection.
The Marlin AUV system recently
completed a series of tests in the US
Gulf of Mexico, demonstrating autonomous change detection of a fixed offshore platform. Benefits of autonomous
inspectioninclude
Reduced cost of operations
Faster inspection
Automatic change detection

Georegistered inspection data
Simultaneous operations from a
single support vessel
Large standoff distances from the
facility being inspected
Increased safety of operations
Reduced environmental impact
Reduced specification
requirements on support vessel
Subsea Integrity Management

A key element in any integritymanagement program is regular inservice inspections. As the industry
moves into deeper and harsher environments, challenges faced by operators
include the high cost of subsea inspection and the limited inspection intervals
available. Inspections provide a snapshot
of the structural health of the system. An
ROV inspection of a deepwater facility
can provide visual evidence of structural degradation, impact damage, corrosion, valve damage, leaks, vibration, and
other structural damage. Benchmarking
the condition of subsea equipment following installation and tracking its status over time can provide a history of the
deterioration rate.
Deepwater Inspection Tasks

Visual inspection of deepwater facilities
routinely employs ROVs piloted by operators on the surface while recording highdefinition video data. Video inspections
include equipment that is often spread
over many square kilometers, requiring
the support vessel to maneuver for days.
OTC 22438, The Role of Autonomous Underwater Vehicles in Deepwater Life-ofField Integrity Management, by Dan McLeod and John Jacobson, Lockheed Martin,
prepared for the 2011 Offshore Technology Conference Brasil, Rio de Janeiro, 46
October. The paper has not been peer reviewed.
Inspection speed is totally dependent on

the coordinated movement of the ROV
and support vessel and on the skill of the
ROV pilot.
Video recordings do not lend themselves to georegistration on a pixel or
frame basis, making comparisons
between past and current states difficult if not impossible. Once collected,
these data are often stored on hard drives
in file sizes that exceed multiple terabytes. Cataloging the files is a demanding
task, and review of the recorded video
requires a dedicated individual to view
the images and discriminate changes or
areas of concern. With or without baseline documentation, the review is tedious
and time consuming and the data files are
often misplaced or lost.
Post-Hurricane
Inspection Trials
AUV inspection of a fixed platform after
a major hurricane presents an opportunity for major time and cost savings.
Trials in 2011 focused on demonstrating
the capability of the AUV to image a platform for which no a priori information is
available. The system (Fig. 1) was mobilized in three lifts in a matter of hours.
Once on station, the AUV is launched
and, during its first mission around a
platform, builds a 3D model of the subsea structure constructed from 3D sonar
data. This 3D model becomes the baseline from which future change-detection
missions are run.
Once the mission is complete, the
vehicle autonomously returns to a predetermined point and waits for an acoustic command to rendezvous with the
ship. The operators initiate an autohoming sequence that results in the vehicle
homing to a transponder on the lift line.
The vehicle will automatically latch to
the lift line and indicate that it is ready
for recovery. The crane operator simply
lifts the vehicle from the water (Fig. 2).

JPT AUGUST 2012
87
ed in this manner enable the generation of true 3D models that can be

used to develop an accurate baseline
for engineering mensuration and precise integrity monitoring over days
or years.
Conclusion
Fig. 1The Marlin system is

mobilized in three lifts.
Fig. 2The Marlin system is

recovered by simply lifting it
from the water with a crane.
Once onboard, the vehicle is stowed in

its shipboard cradle and prepared for the
next mission.
Real-time change detection has
been demonstrated on two fixed structures. This highly advanced feature,
coupled with autonomous route plan-
ning, enables the AUV to revisit areas

where changes have been detected and
collect high-definition video or highresolution sonar images at a much closer range. All of these records are tagged
with precise position information for
every voxel. Inspection data collect-
The Marlin offshore-platform-inspection

system has completed its sea trials and
demonstrated advances in autonomy
that enable a game-changing inspection capability for oil and gas operating
companies. It was shown that the system is capable of quickly, accurately, and
safely completing a structural survey
of an offshore platform with minimal
operator interaction and oversight, revolutionizing shallow-water inspections.
The 3D models generated in situ offer
field operators unprecedented utility to
monitor the integrity of their subsea
facilities accurately with lower costs,
fewer people at sea, and greatly reducedrisk. JPT
TECHNOLOGY
FOCUS
Emmanuel
Garland, SPE, is
a special advisor
to the HSE vice
president at Total
Exploration and
Production. He
has been SPE Technical Director for
Health, Safety, Security, Environment,
and Social Responsibility and a member
of the SPE Board of Directors. Garland
graduated from the cole Centrale de
Paris and from the cole Nationale
des Ptroles et des Moteurs. He is a
Qualified Engineer and serves on the
JPT Editorial Committee.

SPE 151819 Water Conservation:
Reducing Freshwater Consumption by
Using Produced Water for Base Fluid in
Hydraulic FracturingCase Histories in
Argentina by J. Bonapace, Halliburton,
et al.
OTC 22705 Lessons Learned From
Statfjord A Oil Spill and Actions Taken
To Reduce Spill Risk During Offloading
Operation by Trond Stokka Meling, Statoil,
et al.
SPE 152435 Communicating HSE to a
New Generation by Juan Carlos Lpez,
Schlumberger
OTC 22339 Costing the EarthOil-Spill
Response and Ecosystem Services
by Nigel H. Wright, Atkins
SPE 143713 Identifying Environmental
Risk of Sustained Casing Pressure
by K. Kinik, Louisiana State University, et al.
SPE 153867 An Environmental Solution
To Help Reduce Freshwater Demands and
Minimize Chemical Use by Jason E. Bryant,
Halliburton, et al.
SPE 154812 An Audit of Cardiovascular
Disease Detected During Mandatory
Extension Medical Assessment for
Employees Reaching Retirement Age
by A. Akhter, Qatar Petroleum, et al.
90
HEALTH, SAFETY,
ENVIRONMENT,
AND SOCIAL
RESPONSIBILITY
Safety, environment, health, security, and social responsibility are all interlinked.
It is particularly visible whenever a major accident occurs (for example, when a
leak caused by a spiteful attack or wrong decisions made by exhausted, stressed, or
unskilled people leads to polluting an area with consequences on the local population).
To prevent these events, we need sound design of our installations, skilled and healthy
teams, good planning of interventions, and so forth. It is clearly not only the responsibility of health, safety, and environment (HSE) or health, safety, security, environment, and social responsibility (HSSE & SR) teams, but of all workers. It is the responsibility of each of us to strive to reduce the frequency of incidents or near misses and
the size of chronic discharges to the air or to the natural environment that may affect
the health of the workers or of the communities in the long term, and to ensure that
those whose natural resources are produced benefit from it.
Those who believe that it is enough to follow the rules set by the lawmakers are
wrong. While compliance is useful to prevent many incidents, we all know the limits
of its efficiency; regulations have never been able, and will never be able, to prevent
all accidents and all incidents, particularly when it comes to producing hydrocarbons
in emerging frontiers (e.g., Arctic, tight gas, extra-heavy oil, high pressure/high temperature, ultradeep waters). We have to invent new ways of addressing stakeholder
concerns and develop the technology that adequately controls and limits the effect
of exploration and production on ecosystems, a large concept that encompasses natural environment as well as interactions between our activities and the people. We
also need to develop the means by which production of natural resources benefits not
only those who have access to it (end users maybe thousands of kilometers from the
source) but also the local community.
We need better technology and processes. We need to develop chemicals of
which the unavoidable discharge has no effect on the environment or on the health
of the workers, techniques of geoseismic that limit the level of noise emitted, detection devices that prevent leaks, design of installations that leads to safe high-integrity
protection systems, drilling practices that help predict and manage undesirable kicks,
improved CO2-capture techniques, and more. We also need efficient auditing systems,
sound management systems, comprehensive stakeholder dialogue tools, and tools to
develop not only a safety culture but an HSSE & SR culture shared by all workers.
The following pages provide a glimpse of what some people and some companies
have achieved recently. Will we be wise enough to learn from these experiences and
bold enough to develop those tools and processes that our stakeholdersand our
childrendream of? JPT
JPT AUGUST 2012
Real-World Application
of the Bow-Tie Method
The primary motivation for the use of

bow-tie diagrams was to seek assurance that fit-for-purpose risk controls
were consistently in place throughout
all operations worldwide. Their use has
spread between companies, industries,
and countries and from industry to regulators. This paper aims to demonstrate
the practical uses and benefits of this
versatile tool, which can be used to qualitatively assess and to demonstrate control of all types of risk in many industries and business sectors. The complete
paper details an example case.
Bow-Tie Method
The bow-tie method shown in Fig. 1
provides a readily understood visualization of the relationships between the
causes of business upsets, the escalation
Preventive
controls
Business
Recovery
upset
preparedness
Effects
Introduction
Causes
lso known as barrier diagrams,

bow-tie diagrams provide an
understandable visualization of
relationships between the causes of
business upsets, the escalation of
such events to a range of possible
outcomes, the controls preventing
the event from occurring, and the
preparedness measures in place
to limit consequences. Preventive
and mitigating measures are linked
to tasks, procedures, responsible
individuals, and competencies.
This crucial connection between
risk controls (whether hardware
or humanintervention) and the
management system ensures
ongoingeffectiveness.
Fig. 1The bow-tie principle.
of such events, the controls preventing the event from occurring, and preparedness measures to limit the business effects. In its most common use,
the ultimate aim is to demonstrate control of health, safety, and environmental
(HSE) hazards; therefore, it is first necessary to identify those hazards requiring bow-tie analysis. Once hazards have
been identified, the bow-tie method can
be applied to assess risks further and
provide a framework for demonstrating effective control. Typically, bow ties
are developed by asking a structured set
of questions that build the diagram in a
step-by-stepfashion, detailed in Figs. 2
through 4 in the complete paper.
Applying the Technique. Development
of the bow-tie diagrams and critical
tasks should be carried out in a structured manner to obtain quality information and best represent the actual
risk-control arrangements. Fig. 2 summarizes an effective building process,
which has been developed and refined
This article, written by Senior Technology Editor Dennis Denney, contains highlights
of paper SPE 154549, Lessons Learned From Real-World Application of the Bow-Tie
Method, by Gareth Book, Risktec Solutions, prepared for the 2012 SPE Middle East
Health, Safety, Security, and Environment Conference and Exhibition, Abu Dhabi,
24 April. The paper has not been peer reviewed.
through experience with a variety of

companies, industries, and work groups.
Facilitated workshops involving people who are regularly confronted with the
risks have proved to be the most-effective
way of identifying real controls and capturing past incidents and current practice. Openness is essential during these
sessions if any weaknesses in controls are
going to be uncovered. To encourage free
discussion, the workshop must be run in
an honest and engaging fashion. Often,
an independent facilitator can help to
create such an environment.
Practical Uses
The structured approach of the bow tie
forces an assessment regarding how
effectively all initial causes are being
controlled and how well-prepared
the organization is to recover in the
event that things start to go wrong.
This logical approach often identifies gaps and issues that are missed by
othertechniques.
Complete Risk Management. Risk
assessments can tend to concentrate only
on the level of risk rather than considering all aspects of the management of risk.
However, the bow-tie method highlights
the direct link between the controls and
elements of the management system.
JPT AUGUST 2012
91
Prepare draft
bow ties
Typically, enough information is obtained during the hazardidentification exercise and site visit/survey to allow draft
framework bow ties to be developed.
Review
draft
bow ties
with key
personnel
It is essential that the draft bow ties be formally reviewed by

relevant personnel from operations, maintenance, safety, and
management. This allows a true picture of what is actually in
place to be presented.
Prepare
final
bow-tie
diagrams
Freeze the bow ties once they have been reviewed formally.
Prepare draft
critical tasks
supporting
each risk
control
Prepare a draft list of the tasks and activities that maintain the
risk controls identified on the bow ties. Structured interviews
during the site visit and bow-tie review workshop usually provide
sufficient information.
Review draft
critical tasks
with key
personnel
Review the tasks with the people who carry them out to ensure
that they are accurate, that supporting procedures are identified,
and that means of verifying that tasks are carried out are
recorded.
Fig. 2Practical application of the bow-tie technique.
Demonstration. Because of their origin, bow ties are used most commonly
when there is a requirement to demonstrate that hazards are being controlled,
and particularly when there is a need to
show the direct link between the controls and elements of the management
system. For example, bow ties have
been used successfully in safety reports
produced for compliance with the UK
onshore chemical industrys Control of
Major Accident Hazard regulations.
Communication. In its simplest graphical form, the diagram can be understood
by personnel at all levels of an organization, including those who are not
connected with the day-to-day business
92
operation being assessed. The bow tie

lends itself to being displayed on posters
highlighting key risk-control issues. It is
not always necessary to use sophisticated
publishing techniques to get the most out
of the bow-tie method. Talking through
the components of a particular scenario
(i.e., causes, consequences, controls, and
tasks) while simultaneously sketching a
bow tie layer by layer can illustrate clearly how the hazard is managed effectively, particularly to those who may not be
familiar with the details of the operation.
This approach has been used successfully during safety workshops, prejob
planning meetings, and discussions with
regulators and interested members of
the public.
Bow ties provide a robust, comprehensive, yet simple means of rolling out
the main points from a risk-assessment
exercise or HSE case. Workshops involving workforce teams can be taken
through the bow ties step by step,
enabling them to understand thesignificant risks associated with their place
of work, the measures taken to manage
these risks, and the importance of their
individual roles in preventing and mitigating hazardousevents.
When personnel are comfortable
with the bow-tie technique, building a
bow tie becomes a viable alternative
to traditional hazard-assessment tools
such as checklists and prompts. The
bow-tie structure provides an excellent
framework for brainstorming sessions.
Critical Systems. Critical hardware
systems are those that cause, prevent,
detect, control, or mitigate a hazardous event. The nature of a bow-tie diagram implies that these critical systems
are illustrated clearly along the threat
and consequence branches, providing a
ready means of identifying systems that
are critical to ensuring ongoing asset
integrity. Critical systems can be linked
to defined performance standards and
to means of verification.
Organizational Improvements. Bow
ties can be used in conjunction with
organizational- and cultural-survey
techniques to highlight branches of the
bow tie in which organizational control is weak (i.e., areas with ineffective controls). Recognizing that organizational failures are the main cause
of accidents is the principle behind a
questionnaire-based survey used to build
a picture of an organizations strengths
and weaknesses against 11 basic risk
factors. This process enables proactive, sustainable strategies (for reducing
and managing risk) that focus on weak
spots (e.g., a higher level of inspection
or auditing).
Specific Risks. Bow ties also are of value
for undertaking a thorough analysis of
specific risks (e.g., nonroutine activities or particularly problematic areas)
to provide reassurance that everything
that can be done reasonably to reduce
and manage risk is actioned.
JPT AUGUST 2012
Procedures and Competence. A completed bow-tie analysis includes a list

of critical tasks that should be undertaken to ensure ongoing integrity of
the risk controls. As a minimum, the
tasks must be reviewed with the individuals responsible for carrying them
out, but they also lend themselves to
being incorporated into procedures,
work instructions, and individuals job
descriptions. A thorough bow-tie analysis also can detail, for each task, the
input procedures required to undertake the task correctly and any records
that verify completion of the task, as
well as competence requirements for
the role responsible for undertaking
the task. Therefore, the tasks can be
used to verify the adequacy of a companys competence-assurance system;
the competencies defined for an individual or role should align with the bow-
tie controls. In this fashion, bow ties

have been used to manage handover and
new-starterresponsibilities.
system. In this way, critical hardware

systems essential for ongoing risk management are prioritized.
Layer-of-Protection Analysis. Bow-tie

diagrams have been used for conducting
layer-of-protection analysis, a simplified risk-assessment tool for determining whether sufficient protection is in
place and for quantifying the residual
risk when protection is insufficient. Wellconstructed bow ties, together with clearly defined rules for applying failure data
for hardware and human-intervention
barriers, enable conservative estimates
of residual risk to be compared to risktolerability criteria. The approach tends
to work well during design phases. It is
possible to make direct links between the
engineered safeguards on the bow ties
and specific work orders in a preventivemaintenance scheduling and tracking
Limitations
Of course, the bow-tie method is not a
panacea for all risk-management problems. To quantify a level of risk in absolute terms, the bow-tie method will not
help directly. To model complex interrelationships between risk controls, there
are better ways than the use of bow
ties. To identify individual safeguards
for every line of every section of every
unit of a process facility, a hazardousoperations study is the solution. But, to
remove the mystique of risk management and obtain insights into risk controls that are easy to understand and
easy to communicate and at the same
time realize efficiency gains, the bow-tie
method is excellent. JPT
Aging and Life Extension:

KP4 Inspection ProgramThe First Year
ith a significant proportion of

the UKs offshore infrastructure
having exceeded the original
design life, the aging population of
offshore installations presents a
growing challenge to safety. Aging is
characterized by deterioration that,
in the severe operational environment
offshore, can have serious asset-integrity
consequences if not managed properly.
The UK Health and Safety Executive
(HSE) Aging and Life Extension
Inspection Programme, also known as
Key Programme 4 (KP4), was launched
in July 2010 to the UK offshore industry.
life, typically specified as 20 or 25 years,

and this proportion is increasing steadily with time. The majority of installations are likely to remain operational for
many years, and, thus, the aging offshore
infrastructure presents a growing challenge, particularly as reserves decline
and the nature of companies in the market changes. In the extreme case, failure
could cause the total loss of an installation with little chance of survival. Thus,
the management of aging and life extension must be an integral part of the assetintegrity-management system (AIMS) to
ensure continued safe performance.
Integrity management of aging
installations and successful implementation of an asset-integrity-management
plan for life extension depend on understanding the degradation processes, on
accurate knowledge of both the condition of the asset and its response in the
aged condition, and on an implementation strategy to deal with the increasing
risk of failure with time, which enables
the greater likelihood of deterioration
to be predicted, detected, and assessed.
Risk-based goal-setting regulations, supporting guidance, industry standards,
risk assessments, and performance standards provide the basis on which owner/
operator policies can be developed.
Life extension of offshore installations

raises safety issues relating to asset integrity that go beyond traditional practice in
the offshore sector. There is a need for
better awareness of the hazards arising
from aging processes and for preparedness for the possibility of accumulat-
ing and accelerating damage that might

occur in the life-extension phase. Aging
processes can be considered as systematic changes that alter the risk profile of
an installation and include the following.
Degradation of plant, equipment,
or structures as a result of time-based
erosion, corrosion, fatigue, or damage
not redressed by existing maintenance,
inspection, and verification activities.
Obsolescence.
Introduction of new or revised
regulations, standards, guidance, or
good practice that require an increase
(or relaxation) of integrity, reliability,
oravailability.
Changes to plant, equipment, or
structures over time that cause a discrete
or cumulative reduction in safety.
Changes to use or any processes,
process fluids, or process conditions
that increase severity or frequency of
demand on integrity.
Changes to personnel or
operations that reduce the ability,
competence, and knowledge profile
of personnel involved in all aspects of
design, safety evaluation, installation,
operation maintenance, and
decommissioning of an installation.
Important factors to consider are the
change of ownership with installations
to smaller companies that have little or
no prior experience of operating on the
UK continental shelf, the contracting
out of functions with loss of corporate
memory, and the loss of historical
(design and inspection) data with the
resulting loss of information about
the condition and performance of
theinstallation.
of paper SPE 145518, KP4: Aging and Life-Extension Inspection ProgramThe
First Year, by Alexander Stacey, UK Health and Safety Executive, prepared for the
2011 SPE Offshore Europe Oil and Gas Conference and Exhibition, Aberdeen, 68
September. The paper has not been peer reviewed.
In addition to the engineering considerations, it is important to recognize

that maintaining and building competence are vital, and the aging profile of
the industrys workforce presents particular challenges. There is a need to ensure
Introduction
The purpose of KP4 is to
Determine whether the risks to
asset integrity, which are associated
with aging and life extension, are being
controlled effectively.
Raise awareness of the need for
specific consideration of aging issues
as a distinct activity within the assetintegrity-management process and of
the need for senior management to
demonstrate leadership on this matter.
Identify shortcomings in dutyholder practices in the management of
aging and life extension, and enforce an
appropriate program of remedial action.
Work with the offshore industry
to develop a best-practice common
approach to the management of aging
installations and life extension.
More than 50% of offshore installations in the UK sector of the North
Sea have exceeded the original design
Key Issues
JPT AUGUST 2012
95
Policy
Organizing
Auditing
Policy
development
Organizational
development
Planning and
implementing
Measuring
performance
Reviewing
performance
Developing
techniques
of planning,
measuring,
and reviewing
Feedback loop to
improve performance
Fig. 1Key elements of successful health and safety management.
that the competence that exists is captured to create a new generation of competent engineers and that skill gaps are
identified and filled through an active
recruitment and training program.
AIMS
The safe operation of aging installations
requires that management of aging and
life extension be recognized explicitly in duty holders safety-management
systems. The basis for management of
aging and life extension is provided by
the UK Health and Safety at Work Act
(1974) and the UK Management of the
Health and Safety at Work Act (1999)
and is underpinned by the range of
offshoreregulations.
A suitable framework for definition
and assessment of the safety-management
system is shown in Fig. 1 and was adopted
into KP4. It embodies the requirements of
the UK Management of Health and Safety
at Work Regulations(1999).
Duty-Holder Action Plan

The KP4 inspection marks the beginning of a development phase by the duty
holder of the AIMS with respect to aging
and life extension, which will be subject to future inspection by HSE. Following discussion with and formal feedback
to the duty holder concerning identified
issues, the duty holder is required to do
the following:
96
Outline an action plan for further

development of the AIMS for aging and
life extension, setting out the schedule
against which HSE will inspect
Perform a thorough review of
aging and life-extension management
Identify and implement
individual installation requirements
Update installation-safety cases
to reflect the management system for
aging and life extension
The process depicted in Fig. 2 requires the duty holder to
Give explicit consideration
to the management of aging and life
extension, highlighting management
measures that differentiate from dayto-day problem solvingthis requires
a good understanding of aging and the
requirements of life-extension planning
Identify good practices already
implemented, which may address aging
and life-extension management and
must be identified as such
Perform a gap analysis
Develop an implementation plan
Deliver the implementation plan
Monitor the process and
implement remedial measures, as
appropriate
It should be noted that, in addition to the ongoing onshore inspection
of the duty-holder management system,
all offshore inspections in HSEs inspection plan will include a KP4 element,
thus enabling coverage of all duty-holder
installations over time.
Supporting Activities
The KP4 inspection program is supported and reinforced by several stakeholder
engagement/dissemination activities and
by technical activities.
Stakeholder Engagement. A key aspect
of the program is engagement with
offshore-industry stakeholders (i.e.,
duty holders, contractors, other regulators, industry bodies, technical and
standards-making bodies, and verifiers). An essential outcome of this activity is that the importance of aging and
life-extension management is understood and that appropriate measures are
implemented at all levels within organizations and across the UK offshore
industry in general. Information on
KP4 and on progress and key findings is
publicized primarily through seminars
and conferences and through the HSE
website. HSE has participated in many
domestic and international events on
asset-integrity management and, specifically, on aging and life extension to promote KP4. This policy is set to continue
for the duration of KP4.
HSE Aging and Life-Extension Web
Page. An HSE Web page, dedicated to
the dissemination of information on
the program and relevant supporting
information (e.g., the KP4 policy and
strategy, guidance, research, operational issues, inspection findings, industry events, and links to external sources of informationincluding links to
the aging program of Norways Petroleum Safety Authority), has been created, and development continues as
the program progresses. It is envisaged
that the Web page will provide a primary source of information on the subject of aging and life extension for offshore installations.
Guidance Development. Guidance on
the consideration of aging of an installation during the 5-year review process
is provided in HSEs Offshore Information Sheet 4/2009. Additionally, general information on aging semisub-
JPT AUGUST 2012
Identify current
practice
Identify good
management
practice
Gap analysis
Develop
implementation
plan
Deliver
implementation
plan
Monitor and
feedback
Fig. 2Development of an AIMS

for aging and life-extension
management.
mersibles is given in HSEs Offshore

Information Sheet 5/2007. Guidance on
thorough reviews, including the need
to consider aging processes, is given
in HSEs Offshore Information Sheet
4/2006. Particularly useful and comprehensive information on the management of equipment containing hazardous fluids or pressure, including the
assessment of the risks of accumulated damage and deterioration, is given
in HSE Research Report 509. See the
complete paper for the complete list
of guidelines.
To assist duty holders with the
development of their AIMS, the wide
scope of KP4 requires development of
more-detailed guidance covering all the
topic areas in KP4. The guidance provided in HSEs Offshore Information Sheet
4/2009 is restricted to fire and explosion integrity and structural integrity.
It is being expanded and updated where
necessary to cover all the topic areas in
KP4 [i.e., organizational factors, structural integrity, materials (including corrosion), maritime integrity, mechanical integrity, process-plant integrity, fire
and explosion integrity, electrical- and
control-systems integrity, wells, and
offshore pipelines] and is being made
available on the HSE Web page. JPT
JPT AUGUST 2012
Value of Dispersants
for Offshore-Oil-Spill Response
ach oil-spill-response option

must be evaluated for operational
limitations (e.g., sea state), potential
effectiveness, environmental effects of
the response option, applicability under
various oil-spill scenarios (e.g., size and
location of the spill), and health and
safety of the responders. Alternative
response tools are available to assist
mechanical recovery in treating large
offshore oil spills more effectively.
There are misperceptions and
misunderstandings about dispersants
and their use; therefore, a description
of dispersant use during the Deepwater
Horizon incident is presented.
Introduction
The primary goal of any oil-spill response
should be to minimize environmental
harm. Although one expectation may
be complete physical containment and
removal of oil from the environment,
this often is not possible (especially with
large offshore spills) because of physical
limitations of mechanical-recovery systems. Recovery operations during previous offshore spills collected only a small
fraction of the spilled oil, even under
ideal conditions. The Deepwater Horizon incident was no exception, with estimates indicating that only 3% of the oil
was recovered mechanically.
Recognizing significant limitations
of mechanical recovery has led to developing alternative response toolsone
of which is oil-spill dispersants. Oil-spill
dispersants facilitate removal of oil from
the environment by enhancing the natural biodegradation process. Dispersants break up a surface slick rapidly into
micron-sized droplets that move into
the water column. This action provides
naturally occurring oil-degrading bacteria greater access to the oil by creating a dilute mixture of oil in water rather
than a thick surface accumulation. Fortunately, oil-degrading bacteria exist in
all marine environments, having evolved
to degrade oil released by natural seeps.
Dispersed oil dilutes rapidly, and concentrations above known toxicity thresholds
persist for no more than a few hours after
effective dispersant application.
During the Deepwater Horizon incident, the amount of damage to the shorelines was far less than expected initially
by the public. In many locations where
oil did enter, marsh-grass recovery was
apparent soon after the spill. This, and
other evidence, suggests that a key reason for the limited shoreline effects during the incident was use of dispersants
and, in particular, the subsea injection of
dispersants at the wellhead.
Oil Behavior During High-Flow

Subsea Release
The lower the viscosity of the oil, the
higher the flow rate, and vice versa. Also,
the ability to disperse oil is inversely
related to the fluids viscosity, and oils
remain readily dispersible with viscosities up to several thousand centipoises.
Another consideration with a deepwater release is that it is currently not
possible to predict accurately where oil
of paper OTC 23359, The Value of Dispersants for Offshore-Oil-Spill Response, by
Tim Nedwed, Tom Coolbaugh, and Greg Demarco, ExxonMobil, prepared for the
2012 Offshore Technology Conference, Houston, 30 April3 May. The paper has not
been peer reviewed.
will emerge at the surface, and, once it

reaches the surface, it may have already
spread over large areas. Continually
shifting currents will cause the surfacing
location to change over time. These conditions present considerable challenges
to the use of mechanical-recovery equipment offshore.
Unemulsified low-viscosity oil evaporates, spreads, and naturally disperses quickly at sea. Left untreated, however, oil on the sea surface can form
water-in-oil emulsions quickly because of
weathering and wave action. Water-in-oil
emulsion is the only form in which light
low-viscosity oil can persist long enough
to reach shorelines when spilled far from
shore. Dispersants can break water-in-oil
emulsions of light oils readily.
Dispersants
Natural dispersion of oil into water can be
enhanced by application of dispersants
either on the water surface or by use of
subsea injection at the source of a subsea
spill. Dispersant use can reduce environmental effects associated with surface
slicks (e.g., effects on marine mammals,
seabirds, and marshes), enhance removal of oil from the environment through
biodegradation, and rapidly reduce toxicity through dilution. Dispersants are
less limited by natural conditions and
processes than mechanical recovery and
in-situ burning. Oil-recovery booms lose
efficiency in wave heights greater than
3 ft, whereas dispersants become more
effective as mixing energy (e.g., wave
energy) increases. The 10-ft wave-height
limit for dispersant use was set because
of safety concerns for flying aircraft in
high winds rather than as an effectiveness limit. For low-viscosity oil, natural
dispersion (i.e., without the use of dispersants) will remove oil from the surface
quickly when wave heights exceed 10 ft.
Mechanical recovery, in-situ burning, and aerial dispersant application are

JPT AUGUST 2012
99
12 days
4 weeks
Applying dispersant
Sea Surface
Initial dispersion
Bacterial colonization
of dispersant and
dispersed oil
droplets
Bacterial
degradation
of oil and dispersant
Bacterial colonization
of dispersant and
dispersed oil
droplets
Initial dispersion
Bacteria colonies
consumed by
protozoans and
nematodes
Bacterial
degradation
of oil and dispersant
Bacteria
colonies
consumed by
protozoans
and
nematodes
Applying dispersant
12 days
4 weeks
Fig. 1Biodegradation process that begins when dispersants are

applied to surface slicks (top) and to a deepwater release (bottom).
all limited to daylight hours because of

safety considerations and the need to
track the oil slick. Subsea injection of
dispersants, however, is not limited to
daylight operations. Therefore, surface
and subsurface use of dispersants during an oil spill is critical in reducing the
size and duration of surface slicks and
in preventing significant oiling of sensitive shoreline habitats. As with all oilspill-response options, however, dispersants have advantages and limitations.
The most important advantage of dispersants is that they enhance the natural
biodegradation process to speed removal
of oil from the water, thereby reducing
the potential of oil impacting shorelines,
sensitive habitats, and wildlife found on
or near the sea surface.
Mechanism and Chemistry. Dispersants are composed of surfactants that
reduce interfacial tension between oil and
water to allow the formation of micronsized droplets of oil that are entrained
into the water column by wave energy. (Without dispersants, thick oil slicks
generate millimeter-sized droplets when
100
impacted by waves, and these droplets

tend to coalesce and rise back to the surface, rapidly reforming the slick.) Once
in the water column, each dispersed-oil
droplet becomes a concentrated food
source for oil-degradingbacteria.
A misperception about dispersants
is that they cause oil droplets to sink rapidly to the seabed. Dispersants themselves are buoyant, and dispersed-oil
droplets formed from light low-viscosity
oil remain positively buoyant unless they
encounter and associate with negatively buoyant marine sediments. In clear,
deep marine waters far from shore,
encountering enough sediment to sink
large quantities of dispersed oil rapidly
is unlikely. The droplets generated after
applying dispersants range in size from
a few microns to 100 m in diameter.
The rise velocities of these droplets are
insignificant compared to the turbulence
found in the open ocean. Biodegraded
oil also could become slightly negatively
buoyant through degradation of lighter
components (lighter components tend
to degrade first). Dispersed-oil droplets,
however, would become even smaller
after biodegradation, and the fall velocities would be insignificant, as well. Therefore, once dispersed oil enters the water
column, it tends to remain entrained
(without resurfacing or falling to the seabed) until it is removed from the environment through biodegradation.
Biodegradation. Dispersed oil readily
biodegrades in the marine environment,
particularly in warmer waters. Dispersion and dilution in the open sea allows
the more-than-sufficient natural levels
of biologically available nitrogen and
phosphorus to support biodegradation
and maintain a viable community of oildegrading bacteria. Laboratory studies
have shown that oil-degrading microbes
colonize dispersed-oil droplets within a
few days. Also, the composition of some
dispersants enhances the biodegradation because the dispersants serve as an
initial food source for bacterial growth.
Fig. 1 shows the biodegradation process
after applying dispersants at the surface
and subsea.
A simple calculation illustrates how
rapidly the dispersed oil dilutes. Lowviscosity oil (such as the Macondo-well
oil) is expected to have an average thickness on the sea surface of 0.1 mm. Applying dispersant to a slick in 1-m waves is
expected to cause nearly immediate mixing of dispersed oil into the top 1 m of the
water column. This results in immediate
dilution by a factor of 10,000, to yield an
average hydrocarbon concentration of
100 mg/L.
Studies of the Deepwater Horizon
incident are providing evidence of crudeoil biodegradation in the Gulf of Mexico
(GOM). A variety of oil-degrading populations were found to exist in the subsea plume, and there is evidence that
the microbial communities adapted to
and consumed the dispersed oil rapidly.
Findings indicate that rapid biodegradation of oil occurs in the deep sea and that
oil-degrading bacteria have an important role in removing hydrocarbons from
theGOM.
Toxicity. Modern dispersant formulations are composed of low-toxicity biodegradable surfactants dissolved in nonaromatic hydrocarbon or water-miscible
solvents. During the Deepwater Horizon incident, the US Environmental Pro-
JPT AUGUST 2012
West
Courtesy of Ocean Imaging

Winds @ 0850 40/16 knots
Ave winds 64/16 knots
05/10/2010 5:05 pm CST

@ 11 hrs. after start of
subsurface dispersant release
Copyright 2010 Ocean Imaging Corp.
Wind direction
South
South
North
Wind direction
East
05/09/2010 8:52 am CST

Copyright 2010 Ocean Imaging Corp.
Courtesy of Ocean Imaging

Winds @ 1700 120/14 knots
Ave winds 91/10 knots
East
Fig. 2Aerial photos taken over Macondo wellsite before (left; 9 May 2010) and after 11 hours of subsea
dispersant injection (right; 10 May 2010).
tection Agency conducted side-by-side

testing of eight dispersants approved
for use in the USA. It was found that,
in general, the dispersants alone were
less toxic than the crude oil, and that
the combination of dispersant and crude
oil was no more toxic than the crude oil
by itself.
For most species that have been tested, dispersed-oil-toxicity thresholds are
on the order of 1 mg/L, on the basis of
laboratory tests that expose test organisms in closed 1-L containers for periods of 2 to 4 days. Water-column concentrations above toxicity thresholds in
an actual spill are limited to the top few
meters and are limited in time because
of rapid dilution. Dispersed oil can cause
temporary effects to sensitive marine
species, but these effects are limited to
the immediate spill vicinity and persist
only for a short period after dispersants
are applied. These effects generally are
limited to nonmotile organisms that have
reproductive schemes that readily recover from large losses.
Effectiveness Testing. Dispersanteffectiveness tests are performed to
determine if a dispersant can disperse a
specific oil. Unfortunately, recent literature on dispersant effectiveness can be
misleading. The goal of a large percentage of recent research on dispersants has
been to determine the operational limits for viscous crude oils and emulsions.
Many viscous crudes and emulsions
do not disperse rapidly in laboratory
wave basins and beakers. In contrast, a
light crude oil, such as the 35API crude
spilled during the Deepwater Horizon
JPT AUGUST 2012
incident, can be dispersed easily. The

fact that recent literature has focused on
oils that are difficult to disperse leads to
the erroneous conclusion that dispersants sometimes work and sometimes
do not. This may be true for certain viscous oils and water-in-oil emulsions, but
the scientific literature supports the conclusion that light oils disperse readily
and rapidly.
Deepwater Horizon
Dispersant Use
There is preliminary evidence that the
use of dispersants during the Deepwater
Horizon response minimized potential
effects to marine mammals and birds and
minimized the oiling of sensitive shoreline environments.
Surface. More than 25,000 bbl of dispersant was applied to the GOM surface waters during the incident. The
standard application ratio to achieve
effective dispersant/oil ratio (DOR) was
defined as 1-part dispersant to 20-parts
oil for surface application (a 1:20 DOR),
although oil as light as the Macondo-well
oil has dispersed readily at a DOR as low
as 1:200. Use of the 1:20 DOR rule of
thumb would suggest that at least 12%
(510,000 bbl) of the Macondo-well oil
was dispersed by dispersants applied at
the surface.
Subsea. More than 18,000 bbl of dispersant was applied subsea, directly at
the wellhead during the incident. Considering that the oil was very low viscosity, fresh, concentrated, and discharging into very turbulent conditions,
dispersant application at the wellhead

was probably highly efficient, perhaps
approaching the effective 1:200 DOR
found for similar light oils. A realistic
estimate would be 1:100 DOR. This DOR
results in an estimated 1.8 million BO
dispersed subsea that never reached the
sea surface (>40% of the spilled oil).
In addition to keeping oil from
affecting sensitive shorelines, subsea dispersant injection prevented slicks from
surfacing near the Macondo wellsite. This
kept volatile-organic-compound (VOC)
levels near the wellsite below levels of
concern for human health. The aerial
photos in Fig. 2 show the wellsite before
and after a subsea-dispersant-application
test was performed on 10May 2010 during the spill. From analysis of these images, the surface near the wellsite was estimated to be covered with 90% less oil
11 hours after injection of subsea dispersants was initiated.
Fig. 3 provides further evidence
of VOC reduction. This graph shows
hourly VOC data collected on vessels near the Macondo wellsite from 1
through 10June next to the hourly subsea dispersant-injection rates for the
same period. Whenever subsea dispersant injection was reduced or eliminated, VOC concentrations on these vessels rose significantly, indicating that
slicks surfaced near these vessels. Concentrations greater than 100 ppm are
above many threshold-limit values for
organic vapors, requiring workers to
wearrespirators.
On the basis of VOC data, aerial
photos, and interagency-joint-analysisgroup reports, subsea injection of dis-
101
gpm or ppm
Enterprise (ppm)
Helix Producer (ppm)
Rem Forza (ppm)
Q4000 (ppm)
SubSea Dispersant (gpm)
Fig. 3VOC data collected 110 June 2010 on vessels near the Macondo wellsite compared to subsea
dispersant-injection rates. gpm=gal/min.
persants at the wellhead was highly successful and played a large role in keeping
oil off the surface and off sensitive shorelines in addition to mitigating health concerns for workers attempting to contain
the Macondo well.
While careful monitoring and study

in the GOM is warranted, it is expected
that the long-term fate of the dispersed
Macondo oil in the deepwater Gulf will
be the same as oil dispersed from the surface. That is, oil-degrading microorgan-
isms will use the oil as a food source and

ultimately degrade it to primarily CO2
and H2O. Therefore, long-term effects
from this spill are likely to be far less
severe than if subsea dispersant injection
had not been used. JPT
Use of ROVs for Deepwater-Biodiversity

Assessment: Case Study, Offshore Nigeria
ery limited information is available

on the deepwater biodiversity
offshore Nigeria. Detailed information
on seabed communities is vital for
effective environmental management
of offshore-drilling disturbance, but
collection of environmental data
usually requires a dedicated research
vessel with associated high costs. An
environmental-survey approach was
developed that used remotely operated
vehicles (ROVs) already in place on
survey/supply boats during standby time
in drilling operations for low-cost and
high-quality operations.
Introduction
There is little information on the megabenthic communities of the waters in
the region of the Gulf of Guinea. Most
studies focused on the Canary region
to the north. The Benguela region to
the south of the Gulf of Guinea also has
received some attention, particularly on
the shelf, slope, and the abyss. The Gulf
of Guinea region is heavily exploited for
natural resources, primarily hydrocarbon resources and fish, and is subject to
high levels of anthropogenic effect from
pollution. The environmental information is collected mostly by oil and gas
companies and is not available in scientific literature. Baseline quantitative
environmental information is needed for successful management of this
increasingly exploited ecosystem.
Typically, environmental-assessment
surveys do not quantify the larger epi-
benthic megafauna, which are important in benthic processes. Megafauna

have a valuable role in the ecosystem,
particularly in dispersing and redistributing organic matter and sediment,
which may be important in the recovery
of benthic systems from disturbance.
Deep-sea megabenthic ecology traditionally has relied on semiquantitative sampling with trawls and sledges;
more-recent advances used imaging
methods to obtain quantitative data.
Imaging studies enable a nondestructive fine-scale survey of megabenthic
abundance, diversity, and distribution and can have a much larger spatial coverage than is possible with conventional macrofaunal sampling. Recent
advances and application of detailed
navigation technology for deep-sea
studies, coupled with increasing availability of high-resolution spatially accurate acoustic data on submarine topography and sediment properties, allow
the first attempts at linking fine-scale
patterns in biology to the broad-scale
patterns in habitat type and subsea
landscape. Given the sheer size and difficulties of accessing the deep-sea environment, accurate extrapolation of the
fine-scale observations with information on the important physical controls for distribution is vital to describe
the important broad-scale patterns in
benthic biology.
Method
This project was set up to characterize the deepwater megabenthic assem-
of paper SPE 146439, Using Industrial Remotely Operated Vehicles in Standby Time
for Deepwater-Biodiversity Assessment: A Case Study Offshore Nigeria, by Daniel
Jones, National Oceanography Centre; Charles Mrabure, SPE, Total E&P Nigeria;
and Andrew Gates, National Oceanography Centre, prepared for the 2011 SPE
Annual Technical Conference and Exhibition, Denver, 30 October2 November. The
blages found offshore Nigeria by use of

fully quantitative ROV imaging. A trial
visit (April 2009) was carried out to
the Transocean Jack Ryan drillship at
the Akpo site offshore Nigeria (3N 6E;
1366-m water depth). The visit allowed
the use of the Oceaneering Millennium
ROV to collect detailed images and specimens of deepwater megafauna for identification. The second field campaign
was carried out during a visit to Usan
(3N 7E; 750-m water depth) in July
2009 on the ROV support vessel Bourbon Diamond. Because the Usan field
contains a diverse series of seabed habitats, more detail was assessed on the
effect of the variable seabed slope on the
seafloor-animal assemblage, particularly with regard to the number and diversity of organisms. Also, detailed hydrographic measurements (salinity, depth,
and temperature) were carried out, and
sediment, rock, and plankton samples
were collected in the Usan area to drive
further research.
Survey Design. Four slope conditions
were assessed (1, 3, 11, and 29). For
each slope condition, an area was chosen within the Usan field from detailed
bathymetric charts (Fig. 1) to fulfill the
following conditions: constant slope,
depth between 740 and 760 m, no other
obvious features, and at least 1 km from
any drilling activity. Three replicate
ROV-video transects (200 m in length)
were performed at random within each
slope level. In the area of highest slope,
because of bathymetric constraints,
headings were constrained between 350
and 360, 0 and 10, and 170 and 190
but otherwise were random. Transects
were regarded as sampling units (i.e., all
organism densities were totaled for each
200-m transect) and used in all subsequent analysis. Three replicate transects
at four slope levels resulted in a total of
12 sampling stations.
JPT AUGUST 2012
103
Usan ROV Survey

Flat
Contour 10 m
Med
Contour 50 m
High
Extreme
Fig. 1Bathymetry of the Usan area, showing the position of ROV seabed transects.
Data Collection. Data were collected by use of an ROV equipped with a

color video camera, sonar, and ultrashort-baseline navigation transponder.
The camera was mounted on a pan-andtilt unit at the front of the ROV, which
enabled taking oblique video. Before
each transect, the video was zoomed out
to maximum extent and the camera was
set to its most vertical angle (30 below
the horizontal).
In each transect, the ROV run was
a straight line, on a set bearing, and at a
constant speed (approximately 0.3 m/s).
Vehicle altitude (distance from the seabed
to the base of the ROV) was kept constant
at 1 m, which equated to a 143-cm camera
altitude (from the center of the camera).
Transect width (mean of 1.72m and maximum variation 0.2 m) was calculated
from the camera-acceptanceangles.
Data Analysis. Video transects were
replayed at half-speed, and all visible
organisms were counted along the entire
transect. Colonial organisms were counted as single individuals. Infaunal species,
104
when seen, were counted if enough of

the body was visible for identification.
Only benthic fish were counted (i.e.,
those fish that dwell on and feed at the
seabed). Frequently, it was not possible
to identify to the species level. For the
purpose of diversity analyses, when it
was possible to identify organisms only
to higher taxonomic levels, they were
classified to separate morphologically
distinguishable entities (referred to as
taxa). Numbers of organisms are quoted
as abundances (numbers in each sampling unit) or as densities (number/m2).
Results
The seabed was composed almost entirely of fine-grain-sized sediment; no individual grains were visible in video, even
when fully zoomed in. This finding
would suggest that the largest possible
grain size is fine sand (<0.5 mm), but
observations suggest that it was finer
and classified as mud (<125 m). At the
highest-slope areas, hard substrata were
visible. These were, from samples, an
igneous rock associated with past vol-
canism. The hard substratum provided habitat for many taxa specializing in
such habitats.
Benthic Community. A total of 24 invertebrate megafaunal taxa were observed
at Usan from six phyla. In terms of species richness and numerical abundance,
echinoderms were dominant64% of
the fauna observed were echinoderms
representing 10 taxa. Eight cnidarian
taxa were identified, but they represented only 4% of the total density. Crustaceans were numerically important
(31% of total fauna) but represented
only three taxa, and only one of these,
a galatheid, accounted for the majority
of the faunal numbers. Of minor importance were the poriferans, molluscs, and
enteropneusts, each with only one taxon
observed and representing <1% of the
total invertebrates.
Effects of Slope
Slope had a major effect on faunal density. A clear and significant linear negative
relationship between total density and
JPT AUGUST 2012
slope was observed. When total density

was split into more ecologically meaningful units, on the basis of feeding mode,
the trends were even clearer. Deposit
feeders made up most of the megafauna
observed; however, when analyzed alone,
densities of deposit feeders displayed an
even stronger negative linear relationship with slope. Densities of suspension feeders were very low except in the
highest-slope site; even there, the mean
densities were less than half of that of
deposit feeders.
Implications
The hydrocarbon industry is under
increasing pressure to demonstrate environmental responsibility. In deepwater
environments, this is practically difficult because there is limited knowledge
of natural conditions, biodiversity, and
important ecological processes. Unlike
in terrestrial and shallow aquatic environments, there is a paucity of scientific
information on the range of baseline biological parameters necessary to understand and effectively manage anthropogenic activities in the deep sea. The
high-cost of a typical offshore survey limits environmental monitoring. A practical solution is suggested and has been
shown to be effective.
Environmental monitoring in deep
water can be carried out successfully at
low cost with existing technology during standby time. If images are obtained
correctly, by use of simple protocols,
quantitative data on benthic fauna can be
obtained. A regular time series of these
data is a powerful tool to develop baseline
data. Additionally, the use of ROVs allows
high spatial-measurement precision and,
hence, has many applications in moredetailed assessment and monitoring.
The results of the baseline surveys
undertaken here increased the knowledge of the environmental conditions of
deepwater offshore Nigeria, and indeed
West Africa. This survey provided important information on offshore biodiversity, which was provided to the Nigerian
regulatory authorities through the Federal Ministry of Environment and the
Department of Petroleum Resources. By
providing baseline data where little was
available, and engaging with regulators,
this work enhanced regulatory support
for the drilling project. JPT
JPT AUGUST 2012
Social-Performance Indicators and

Maintaining Corporate Social Responsibility
aintaining corporate social

responsibility is vital in securing
a stable operating environment. The
selection of social key performance
indicators is crucial to promote longterm strategic goals, set targets, track
performance, proactively identify
triggers for change, and drive future
improvement in performance. A range
of indicators was developed to support
the ongoing monitoring and evaluation
of the companys social-management
plan, including community investment
projects, livelihood restoration,
reinstatement, and the effectiveness
of community engagement within the
project area.
Introduction
Indicators are used to track process and
progress, and to determine whether the
social component is making a positive
difference (maximizing beneficial project effects) or minimizing risk (mitigating or reducing the negative effects of
project activities as far as practicable).
A monitoring and evaluation system was
established as a tool to ensure that the
company would achieve the goals and
objectives set in its social-management
plan and that the project design and criteria were followed, implementation
effects occurred as predicted, emerging or unanticipated issues and projects
were managed efficiently and effectively, lender and social-performance review
requirements were complied with, international best practice was followed,
Fig. 1Location of the plant and pipeline route within Yemen.
national legislation was adhered to, and

human development and capacity building occurred.
Project Background
A project was launched in August 2005 to
design, construct, and operate a liquefiednatural-gas (LNG) plant on the southern
coastline of Yemen, with an associated
land pipeline to market and export the
LNG, as shown in Fig. 1. Primary stakeholders included project-affected people
(PAP), local and central government and
governmental agencies involved with and
exposed to project activities, and project employees. In terms of the LNG project, PAP are defined as communities,
households, and individuals who live in
close proximity to the project site. There
were 22 clearly defined villages within a
5-km corridor on either side of the pipe-
of paper SPE 152353, Developing Social-Performance Indicators and Maintaining
Corporate Social Responsibility in a Developing Country During Construction and
Operation of an LNG Plant, by Jeanette Rascher and AbdulSalam Al-Shamsi,
Yemen LNG Company, prepared for the 2012 SPE Middle East Health, Safety, Security,
and Environment Conference and Exhibition, Abu Dhabi, 24 April. The paper has
not been peer reviewed.
line right of way and seven in the vicinity

of the Balhaf liquefaction plant. Within
each of these 29 villages (with their subvillages), there are highly complex and
potentially volatile household and tribal
structures based on social, cultural, and
religious norms founded in the community over many generations and which
determine authority, respect, and status
within the community. It is common for
many families, relatives, and individuals to reside within a single household
in a single village or community. Secondary stakeholders included those who
have links (e.g., technical expertise) with
primary stakeholders. Secondary stakeholders include nongovernmental organizations, various intermediary or representative organizations, and technical
and professional bodies, often representing public interests.
Social-Management Plan
and Framework
The operations portion of the companys
environment and social-management
plan (ESMP) is divided into three parts.
Part 1 focuses on the ESMP objectives,
context, corporate-ownership and
management framework, project lay-
106
JPT AUGUST 2012
Program Design
Program Implementation
Program
Output
Redesign /
Amendment
Monitoring and Evaluation

Guiding Principles and Outcomes
Efficient use of resources
Sustaining livelihoods
Public participation
Shared responsibility and partnerships
Gender equality
Human development and capacity building
Fig. 2M/E process.
out and operational description, and

ESMP implementation and operation.
Part 2 describes the projects potentially
adverse environmental effects and presents options to avoid, manage, or mitigate those effects. Part 3 comprises tables
that describe the social-management
structure and framework of the operations phase, which addresses the implementation, monitoring, and evaluation
of the public-consultation and disclosure
plan (PCDP), the resettlement-action plan
(RAP), and the sustainable-communitydevelopment plan.
The social-management framework
for the operations phase includes (but is
not limited to) a series of commitments
from the 5-year sustainable-development
strategy and the intended outcomes of
that strategy through implementation
of the proposed community investment
projects, the PCDP, and the RAP.
RAP. One of the most important aspects
of any major project, particularly one
taking place in a developing country,
is to minimize any adverse effects on
local populations. In this respect, the
company developed an RAP in full compliance with World Bank and International Finance Corporation (IFC) policies
and guidelines. As a measure of success
of the resettlement strategy, during the
5-year construction period of this major
project, no one was resettled. There was
limited short-term economic loss to both
land users and to fishermen, which was
compensated for by the means most
appropriate to the effect. A system of
land compensation (for permanent loss
of access to habitable and cultivatable
JPT AUGUST 2012
land) was put in place in conjunction

with the Yemeni government.
Monitoring and Evaluation

of the ESMP
The companys ESMP states that Primary monitoring and evaluation responsibility will rest with the company. However, for certain elements the company
will rely heavily on input from external
auditors. The monitoring and evaluation (M/E) process shown in Fig. 2 is
linked to the M/E framework that provides detail of what each project will
accomplish, how it will be accomplished,
and how to evaluate whether it has
beenaccomplished.
The M/E system for the three components of the ESMP focuses on three
main methods: monitoring, reviews,
and evaluation. Triangulation is used to
report these processes. Monitoring of all
projects is a continuous internal process
and a regular external process undertaken to check the progress of interventions against predefined objectives and
plans. Reviews take place at key intervals
between monitoring and evaluations to
ensure that the overall direction is correct and that the activities are likely to
meet the purpose for which they were
planned. Triangulation (synthesis and
integrated analysis of data from multiple sources for program decision making) is used as a multimethod approach
to data collection and analysis to report
on the monitoring, review, and evaluation process.
Monitoring and Reviews. Company
Management System (CMS). The
CMS policies, processes, and procedures are instructions and guidelines

on how to perform work in a systematic, efficient, collaborative, and uniform
way. The CMS is based on good practice from several international standards
and shareholder-management systems,
and it acts as the controlling system
that defines roles and responsibilities
and regulates the interactions between
variousdepartments.
Logical Framework. This framework (matrix) details the logical steps
for implementing projects for each of the
ESMP components and projects. Each
framework has indicators that provide
data to assist informed decision making
throughout the process of a project.
Baseline information forms the
basis for establishing indicators to
make before-and-after assessments or a
change-over-time assessment. Indicators
help verify whether, or to what extent,
progress is being made toward goals.
Indicators make it possible to demonstrate results; help produce results by
providing a reference point for monitoring, decision making, stakeholder consultations, and evaluation; help demonstrate progress when events go right;
and provide early warning signals when
events go wrong.
Project-Management Cycle. Projectmanagement-cycle processes and procedures were developed and implemented to ensure that projects are managed
according to a project life cycle. They
comprise a logical sequence of activities
to accomplish project goals/objectives.
The key is to help staff members who are
responsible for managing the resources and activities of projects to enhance
development results along a continuum,
from short term to long term. Project
interventions must be directed toward
sustainable, longer-term effects along a
linked chain of results.
Management Information System. A computer-based system to manage information dedicated to monitoring and evaluation of social-management
plans was implemented during the last
quarter of 2011. The system will aggregate information; monitor activities
and operations; generate reports (e.g.,
financial statements and performance
reports) by use of dashboards, calendars,
and diagrams; enhance communication
108
and collaboration among employees; and

transform data into information useful to
support quick, timely, and informed decision making.
Visual Inspections. Regular inspections and project visits are undertaken
by managers, community-relations coordinators, and project coordinators to
ensure that implementing agents achieve
targets, that communities are informed
and involved, that issues are addressed
in a timely manner, and that the purpose
and dates of visits are captured in the
M/E framework.
Internal Audits. Formally scheduled audits are undertaken by the
internal-audit department. These audits
follow a defined program and focus on
specific aspects of the project cycle,
including on-ground verification of projects, documentation system, and efficiency and effectiveness. Audits cover all
completed projects from inception. Visits are made to all ongoing and completed projects.
From time to time, audits are initiated in response to a specific issue or
request. Examples include health, safety, and environmental prequalification of
potential contractors; labor compliance;
and local content.
Reporting. The company developed an effective reporting system
that provides a mechanism for reporting on ESMP-related issues to include
quarterly and annual social-monitoring
reports, use of a website and the company intranet to share project activities/
events, and reporting of specific projects (e.g., sustainable-development programs, school-awareness creation, open
house, needs assessments, and lessonslearned reports/summaries). External reporting included lender quarterly
ESMP reports and lender-compliancetaskforce and lender reports.
Compliance and Record Keeping.
A register of ESMP compliance
and noncompliance is kept, and
responses are included as received.
Records are kept for the duration
of the operational phase and are
available to management, authorities,
and auditors (including external
auditors) when requested.
A copy of the ESMP is kept on
site at all times. Hard copies have been
provided to field staff, in addition to
access through the company intranet.

Whenever additions or revisions to any
documentation are added, these are
made available to auditors.
Communication. Oral instructions are used most frequently to initiate corrective action. Such instructions
are given by the community-relations
and sustainable-development manager
in response to minor noncompliances
found during routine inspections. Verbal instructions are also used to create awareness because the noncompliances often are a function of lack of
knowledge. If corrective action is not
taken, oral instructions are followed up
by writtenrequest.
Written instructions are issued following oral instructions and audits. The
written instructions indicate the source
or sources of the nonconformance(s)
and proposed solutions required to
correctthem.
When, in the opinion of an appropriate responsible person on site,
an activity might result in immediate safety, environmental, culturalheritage, or social effects, activityhalt instructions are given through the
appropriatechannels.
Lessons-Learned Workshops.
Workshops, as part of the M/E system,
are undertaken on a 6-month basis with
company staff and, where possible, with
other stakeholders, such as implementing agents, to capture and discuss continuous improvement and to provide a
background understanding and rationale for planning and implementation.
Lessons-learned workshops also provide staff with an opportunity to provide important and specialist feedback to
promoteinclusivity.
Conclusion
This approach is both holistic and appropriate, and it is in full compliance with
the policies and guidelines of the IFC
and the World Bank group, demonstrating commitment to corporate social
responsibility. The external auditors,
lenders, and shareholders have supported this approach, and it is believed
that this approach is valid and will
remain valid throughout the project life
cycle and into the later stages of the
operationalphase.JPT
JPT AUGUST 2012
Lessons Learned Following Macondo

Safety Enhancement
he US Coast Guard is responsible

for protecting the marine
environment, promoting the safety of
life and property, and ensuring security
on the US outer continental shelf
(OCS). Though the Macondo incident
was not initiated by failures within
areas of US Coast Guard jurisdiction
and safety systems regulated by the US
Coast Guard generally performed well
under the extreme conditions, the US
Coast Guard is reviewing its regulatory
construct and seeking lessons
learned from this tragic incident.
Authority and
Regulatory Construct
The US Coast Guard, within the US
Department of Homeland Security
(DHS), has broad authority under the
Outer Continental Shelf Lands Act to
regulate the safety of life and property
on facilities and vessels engaged in US
OCS activities and the safety of navigation. The US Coast Guard also is responsible for promoting workplace safety
and health by enforcing requirements
related to personnel, workplace activities, and conditions and equipment on
the US OCS.
A US OCS activity is any activity on
the US OCS associated with exploration,
development, production, transportation by pipeline, storage, or processing
of mineral resources, including hydrocarbons. A US OCS facility is any artificial island, installation, pipeline, or
other device permanently or temporari-
ly attached to the seabed, erected for the

purpose of exploring for, developing,
producing, transporting by pipeline,
storing, or processing mineral resources from the US OCS. This term does not
include ships or vessels for transporting
produced hydrocarbons.
Lessons Learned
From Macondo
The Deepwater Horizon accident was a
catastrophic event initiated by failure
of well containment, an area that falls
under the jurisdiction of the US Bureau
of Safety and Environmental Enforcement (BSEE). Volume 1 of the report of
the US Department of Interior and DHS
joint-investigation team (JIT) revealed
that, in general, the safety systems
aboard the Deepwater Horizon regulated by the US Coast Guard had a beneficial effect, despite the extreme nature
of the event. Of the 126 people onboard,
115 survived the explosions and subsequent fire. All survivors were able to
evacuate the mobile offshore drilling
unit (MODU) by way of the installed lifesaving equipment, except for at least
six who jumped from the rig into the
water. Even though significantly damaged by explosions and initial effects
of the fire, the Deepwater Horizon was
able to stay afloat for more than 48
hours while engulfed in a major fire, fed
by an uncontrolled fuel source.
While safety systems regulated
by the US Coast Guard generally performed well under such extreme conditions, the event and subsequent inves-
of paper OTC 23436, Lessons Learned Following MacondoSafety Enhancement
on the US Outer Continental Shelf, by J.G. Lantz, P.E. Little, J.P. Nadeau, and J.D.
Reynolds, US Coast Guard, prepared for the 2012 Offshore Technology Conference,
Houston, 30 April3 May. The paper has not been peer reviewed.
tigations revealed potential for safety

improvements in areas that are under
Coast Guard jurisdiction and responsibility. Volume 1 of the JIT report, for
example, recommends many safety
enhancements for MODUs and, potentially, other floating facilities that the US
Coast Guard intends to evaluate. Examples include:
The need for fire- and explosionrisk analyses to ensure that an
adequate level of protection is
provided for accommodation
spaces, escape paths,
embarkation stations, and
structures housing vital safety
equipment
The need for a fixed deluge
system or multiple high-capacity
water monitors to protect the
drill floor and adjacent areas
The need to develop procedures
for the risk-based targeting
of foreign-flagged MODUs
operating on the US OCS
The incident also prompted a more
general examination of US OCS operations and highlighted that US Coast
Guard regulations have not kept up with
the rapidly evolving technology on the
US OCS.
Standards/Policy
Design, engineering, and construction
standards are the cornerstone of the
US Coast Guards OCS regulatory construct. In light of recent experience,
new technology, and current industry
practices, existing standards must be
reassessed to ensure that the risk to
life, property, and environment remains
acceptable. It is important that these
standards remain current and effective.
While assessing existing standards, the
US Coast Guard should strive for a uniform level of safety on the US OCS, capitalize on existing statutory codes and

JPT AUGUST 2012
109
classification-society rules, and provide options for alternative approaches. Additionally, it is important that
standards-development and compliance
activities be coordinated with BSEE.
One Gulf, One Standard. As a coastal
state, the USA is solely responsible for
prescribing conditions that must be satisfied to explore for, develop, or produce oil, gas, sulfur, or other associated
minerals on the US OCS. Similar to the
approach taken by Norway, the UK, and
several other coastal states, all MODUs,
floating facilities, and vessels operating on the US OCS must meet national
requirements established by the USA,
some of which may exceed those contained in other constructs, such as the
International Maritime Organization
(IMO) MODU code. To ensure that the
same level of safety is provided to all
mariners working on the US OCS, all
MODUs, floating facilities, and vessels,
regardless of flag, should be required to
satisfy the same standards. Regardless
of differences in flag-administration
requirements and interpretations, the
required minimum level of safety should
not vary between MODUs, floating facilities, or vessels engaged in similar activities on the US OCS and exposed to similar levels of risk.
Building Blocks. There are many advantages of a single international standard
that is accepted by all countries. Given
the international movement and operation of MODUs, use of a common set of
widely accepted standards, which provide a baseline level of safety, benefits
all involved parties, including designers, shipyards, operators, and coastal states. Accordingly, the IMO MODU
code and other associated and commonly accepted international standards
should serve as the foundation and be
augmented by other national requirements asnecessary.
Involving classification societies
in the design, construction, and maintenance of MODUs and floating facilities provides an essential element of
safety for these units. Classificationsociety rules include requirements for
systems and equipment not covered
in the MODU code. Accordingly, all
MODUs and floating facilities operat-
110
ing on the US OCS should be classed by

a classification society accepted by the
US Coast Guard. This step will ensure
that each vessel meets rules and survey
requirements appropriate to its specific
design and operation; will establish consistency in the plan-review, construction, and inspection services throughout the installations life; and will reduce
the risk of harm to personnel and the
environment.
The USA should establish supplemental requirements for certain critical systems that are not addressed
sufficiently by the MODU code, other
applicable international standards, or
classification-society rules. Requirements for these critical systems are vital
to the safety of personnel working on the
US OCS and to the environment. These
additional coastal-state requirements
may require additional plan review and
inspection by the US CoastGuard.
For offshore-support vessels, there
are international standards and guidelines that the US Coast Guard can use
as the foundation for the coastal-state
requirements. However, there is no
international statutory framework for
floating facilities. For these types of
units, the US Coast Guard should require
that they be classed by an experienced
classification society with rules appropriate to the facility type and should
apply relevant industry-consensus standards. Additional requirements for vital
systems and other items may need to
beestablished.
Prescriptive vs. Performance-Based
Requirements. The International Convention for the Safety of Life at Sea
(SOLAS) provides an example of retaining the benefits of prescriptive regulations while allowing performancebased alternatives. Such an approach
gives clear guidance on what is required,
while providing a framework for alternative approaches. In the case of SOLAS,
although the Chapter II-2 regulations
contain prescriptive requirements, each
regulation now has a purpose statement
and functional requirements to assist
port and flag states in resolving matters that may not be addressed fully
in the prescriptive requirements. The
chapter also includes a framework on
how to conduct an engineering analysis
and evaluation and provide approval of

alternative designs and arrangements to
support deviation from the prescriptive
requirements. Such an approach merits
consideration on the US OCS.
Government. A memorandum of understanding between the US Coast Guard
and the Minerals Management Service
(predecessor of BSEE) was signed in
September 2004. It acknowledges overlapping jurisdictions and the need for
interagency consistency and coordination in regulating activities on the
US OCS. Both agencies agreed to work
together to foster communications and
cooperation; optimize the use of government resources; clearly delineate
areas of expertise and jurisdiction;
develop common, compatible regulations and policies; encourage adoption
of similar codes and standards; and
assist industry in understanding applicable regulations.
In particular, the agencies should
work together to assess the seams
between their respective jurisdictions
and authorities. Both the gaps and the
overlap must be identified and evaluated to ensure that an appropriate and
consistent level of regulatory oversight
is provided with the necessary level
ofexpertise.
Targeted Oversight
Inspections and surveys are conducted
by representatives of each flag administration to confirm compliance with relevant international standards. Similarly,
each classification society performs surveys and audits in accordance with its
rules. As a coastal state, the USA is obligated to ensure that its requirements
are satisfied. In general, the US Coast
Guard should leverage the results of surveys and inspections conducted by the
flag administration and classification
society. However, additional oversight is
necessary, particularly on critical highrisk or vital systems, to confirm the sufficiency and accuracy of the plan review,
testing, and surveys conducted by the
flag administration and classification
society, and to ensure compliance with
US coastal-state requirements that go
beyond flag-state and class standards.
In response to the Macondo incident, the US Coast Guard leveraged
JPT AUGUST 2012
its experience with identifying substandard foreign ships for port-statecontrol examinations and implemented
a policy that targets high-risk MODUs
for additional US Coast Guard inspections. This provides additional oversight of foreign-flag MODUs operating
on the US OCS that have the highest
risk profile.
Recent Developments
The following examples illustrate
some areas in which the US Coast
Guard has initiated action to address
some of the lessons learned from the
Macondoincident.
Dynamic-Positioning System (DPS)
and Automatic-Power-Management
(APM). DPSs and APM are used routinely on MODUs and other vessels to
maintain position during exploration,
drilling, and transfer operations. These
advanced navigation and automation
systems ensure maximum efficiency
and effective operational capability and
enable vessel operations under conditions in which they could otherwise not
likely be achieved safely. Proper operation of these systems is critical to the
safety of the personnel involved and to
protection of the environment.
Emergency Disconnect and Well Closure. On all MODUs, emergency-wellclosure and related crew training and
emergency procedures provide critical safety features when primary and
secondary well control is lost. The
disconnect feature provided by the
emergency-disconnect system (EDS)
on MODUs that use a DPS to maintain position is equally critical in the
event of a drive off or drift off. The DPS
and EDS are integrated and should be
viewed holistically with the emergencywell-closure features provided by the
blowout-preventer (BOP) stack.
When a DPS or its APM system
fails, a vessel can quickly drive or drift
off location unless the operator takes
immediate emergency-response action,
which, in the case of a MODU, may

include activating the EDS. If the EDS
fails, damage to subsea equipment is
possible and a spill may result. Similarly, as illustrated during the Macondo
incident, if well control is lost for any
reason, successful deployment of the
EDS may be necessary to prevent fire
and explosion, life-threatening injuries,
and an uncontrolled subsea spill. The
BOP deadman is the absolute last line
of defense to shut in the well and prevent an uncontrolled fuel source from
feeding a fire on the MODU and spilling
oil and gas into the water. The design,
maintenance, and proper operation of
the BOP stack are vital to the safety of
the crew and environment.
There are no international standards for the EDS or BOP. Current US
Coast Guard regulations contain no
EDS requirements and require only
those BOPs on US-flagged MODUs
to meet industry guidelines. The US
Coast Guard should work with BSEE to
ensure that US requirements are revised
and reflect advancements in technology and the increasingly complex

deepwater-drillingoperations.
Third-Party Testing and Certification.
Although the International Life-Saving
Appliance (LSA) Code and International Code for Fire Safety Systems generally provide internationally accepted design standards for lifesaving and
fire-safety systems and equipment, the
USAs approval process may differ from
the equipment-approval process used by
other administrations. Also, there may
be unique safety features needed on certain equipment installed on units that
work on the US OCS. For example, given
the size of a typical offshore worker
employed on the US OCS, the assumed
average occupant weight prescribed by
the LSA Code for lifeboat and liferaft
design may be insufficient.
A fundamental US Coast Guard
requirement for equipment approval is
independent third-party certification
based on testing completed by a compe-
tent authority other than the manufacturer. This certification is required for
critical items, including lifesaving and
firefighting equipment, and for equipment installed in hazardous areas on
US-flagged vessels.
Large Supply Vessels. The US Coast
Guard Authorization Act of 2010
removed the size limit on offshoresupply vessels (OSVs), allowing these
vessels to exceed 6,000 gross tons. The
act also directed the US Coast Guard to
issue, as soon as is practicable, an interim rule to implement Section 617 of the
act and to ensure the safe carriage of
oil, hazardous substances, and individuals in addition to the crew on these vessels. Accordingly, the US Coast Guard
is preparing an interim rule to address
design, manning, carriage of personnel,
and related topics for OSVs of 6,000
gross tons or more. This rulemaking will
meet the requirements of the act and will
support the US Coast Guards mission of
marine safety, security, andstewardship.
Accommodation Vessels. The US Coast

Guard is concerned about the safety of operations of vessels providing
accommodation service on the US OCS
because those operations typically are
far offshore, are distant from searchand-rescue assets, are near highrisk industrial activities, and may
involve large numbers of accommodated personnel, many of whom may
not be trained adequately. These risk
factors drive concerns about requirements governing vessel manning and
design, emergency systems, design
and operation of DPSs, design and
operation of systems used to transfer personnel between a vessel providing accommodation service and an
US OCS installation, and training. To
become better informed on current
practices, the US Coast Guard should
seek public comment on the appropriate standards for the design, construction, and operation of vessels providing accommodation service on the
USOCS.JPT
Cross-Industry Hydrocarbon-Release Analysis
n analysis was made of

hydrocarbon releases (HCRs)
occurring on the UK continental shelf
(UKCS) during the period of 2008
through October 2010. The analysis
included the type of hydrocarbon
released, operating mode during which
a release occurred, release site, age of
installation, type of installation [manned
or unmanned; floating production,
storage, and offloading vessel (FPSO);
floating production facility (FPF); or
fixed installation], and the underlying
cause of the release. This study aimed to
assist the industry in identifying where
it can best place its resources to reduce
the number of HCRs.
Methanol
1%
Lube oil
3%
Other
10%
Dual phase
3%
Condensate
4%
Gas
44%
Diesel
11%
Oil
24%
Fig. 1Released-fluid types of all HCRs during 2008 through October

2010.
Introduction
HCRs are potential precursors to major
accidents, with the 2010 Gulf of Mexico
incident being a tragic reminder of that
potential. Also, the number of HCRs is a
performance indicator of asset-integrity
management of the offshore installations. Since the creation of Step Change
in Safety (UK offshore-safety initiative)
in 1997, there has been a 52% reduction
in major and significant HCRs. Industrywide workshops, sharing of best practices on asset integrity, and development
and use of toolkits and guidance documents led to an early period of sustained
year-on-year reductions in the number
of major and significant HCRs. In spite
of sustained efforts in recent years, progress appears to have stalled. The total
number of HCRs per year has fluctuated between 155 and 190 in the past 5
years, while major and significant HCRs
have remained in the range of 60 to 85
per year during the past 7 years. The offshore oil and gas industry is not complacent, and at the end of 2010, Step
Change in Safety published a revised
HCR-reduction target. The UK offshore
oil and gas industry, as a whole, agreed
on a target of 50% reduction of HCRs by
the end of March 2013 vs. the 200910
total HCRs of 187. The challenge for the
UK offshore industry is to decide where
to focus its effort to reduce the number
of HCRs and to achieve its revised target.
Data Sources
Most of the information was extracted
from the HCR root-cause-analysis exercise conducted by the Step Change in
Safety Asset Integrity Steering Group at
the end of 2010. Twenty duty holders
supplied their HCR information for the
period of 2008 through October 2010.
Information on 474 HCRs was collected,
of paper SPE 145449, Cross-Industry Hydrocarbon-Release Analysis, by Amy Li,
Oil & Gas UK, prepared for the 2011 SPE Offshore Europe Oil and Gas Conference and
Exhibition, Aberdeen, 68 September. The paper has not been peer reviewed.
and some duty holders also submitted

information on leaks that were below the
reportable criteria.
HCR-Analysis Results
The distribution of released-hydrocarbon
types was analyzed, and the results are
shown in Fig. 1. Gas release was the most
common type, accounting for 44% of
all releases during the period of 2008
through October 2010. Gaseous releases are more hazardous because of the
higher ignition potential of the gas and
its greater migration potential compared to an accumulated pool of liquid release. Therefore, it is a concern
that gas is the most common releasedhydrocarbon type. More concerning was
that, in examining only the major and
significant releases, the proportion of gas
releases increased significantly to twothirds. Moreover, according to the UK
Health and Safety Executives incidentstatistics report, of the major and significant releases, gas releases increased
from 59% in 200809 to 75% in
200910. Therefore, it is important that
the wider industry be made aware of this
JPT AUGUST 2012
113
Construction
0.4%
Abnormal production
0.6%
Shutdown
1.9%
Testing/sampling
3.4%
Well operations
5.3%
Drilling
0.2%
Other
12%
Other
3.2%
Valve
23%
Small-bore pipe
5%
Pipe flange
6%
Maintenance
8.0%
Small-bore
fitting
6%
Startup
9.9%
Pipe body
13%
Hose body
7%
Pump/compressor
7%
Normal production
67.1%
Fig. 2Operating mode during which the releases

occurred (2008October 2010).
situation so that appropriate and effective preventive measures can be implemented to resolve the high incidence of
gas releases.
Operating Mode During Which Releases Occurred. Fig. 2 shows the analysis of the operating mode. Normal production activities are the most common
of offshore activities, and, as expected, normal production is the most common operational mode for HCR occurrence. Plant startup, maintenance, and
well operations also had a relatively significant contribution. Release sites were
analyzed, as shown in Fig. 3. Release
sites appeared to have a relatively even
distribution, although the two mostcommon release sites were valves and
pipe bodies.
Release Trends vs. Installation Age.
Installations of 10 to 20 years age and
30 to 35 years age were most vulnerable;
each with approximately 70 releases. The
number of platforms in each age bracket also varied. Intuitively, more installations in a group should indicate more
incidents. To take the number of installations into account, the number of releases was normalized by dividing that number by the number of installations in
each platform age group. This technique
resulted in a step pattern of incident rate.
Platforms of less than 10 years age had
a low incident rate of approximately 0.5
114
Instrument
connection
9%
Vessel
12%
Fig. 3Release sites for HCRs that occurred (2008

October 2010).
incidents per installation over the study

period. Between 10 and 25 years age,
the releases per installation increased to
the level of 1.21 to 1.40. The incident rate
peaked after 25 years age at 2.85 incidents per installation. Note that 25 years
is the typical design life of offshore installations. Installations older than 35 years
appeared to have a very low number of
incidents, even given the large number of
installations in this agebracket.
Type of Installations. Fixed Installations, FPSOs, and FPFs. The analysis
of installation types used data released
by the UK Health and Safety Executive
covering the period from January 2009
to November 2010. There are 291 installations on the UKCS, of which 14 are
FPSOs and four are FPFs. FPSOs and FPFs
account for only 6.2% of the total installations on the UKCS, yet they contributed 29% of the HCRs over the reporting period.
Reasons for the relative poor performance of the floating installations may
relate to the different nature of their
operation compared with fixed installations. Also, weather conditions have a
much greater effect on their operations.
FPSOs have been known to suffer from
both low-frequency fatigue, caused by
constant loading and discharging (which
has a typical cycle of 7 days), and highfrequency fatigue, resulting from wave
action. Moreover, compared with ships
and as a result of logistical factors, FPSOs

cannot easily go ashore for necessary
repairs at dry docks.
Manned vs. Unmanned Installations. Manned and unmanned installations were comparable in number.
However, manned installations have
contributed the vast majority (93%) of
the releases, as shown in Fig. 4. Also,
unmanned installations generally are
much smaller in size and have lesscomplex processing plants than manned
platforms, which may be a reason for the
lower number of HCR occurrences on
unmanned installations.
Unmanned, 24 releases,
7%
Manned, 303 releases,

93%
Fig. 4Number of HCRs

on manned and unmanned
installations (1January 200831
December 2009).
JPT AUGUST 2012
Other
3%
Inadequate work
standards and procedures
13%
Inadequate
maintenance
32%
Human factor
21%
Inadequate engineering
31%
Fig. 5Underlying causes of HCRs (2008October 2010).
Analysis of Causes. Underlying causes

were submitted by each duty holder that
participated in the root-cause-analysis
exercise. At this stage, focus was given
to the four causes provided: inadequate
maintenance, inadequate engineering,
human factors, and inadequate work
standards and procedures. Incidents
with more than one cause were indicated also. The analysis results are presented in Fig. 5.
Discussion
At the end of 2010, the UK offshore oil
and gas industry, as a whole, agreed on
a target of 50% reduction of total HCRs
per year by the end of March 2013 (vs. the
200910 total number of HCRs187).
In 201011, the total number of
HCRs dropped to 163, a 13% reduction
from the previous year, an average of
0.56 incidents per installation on the
UKCS. The 13% HCR reduction in a single year is an achievement for the industry. However, at this rate of reducing the
number of HCRs (i.e., linear decrease
of 24 HCRs every year), by the second
quarter 2013, the industry would still
miss the target by 21 HCRs. To drive
the number of HCRs down to the target
number of 94 per year will require much
moreeffort.
Comparisons Between UK and Norway. Despite the UK and Norway having
different HCR-severity classifications
and -reporting criteria, over the past 2

decades both countries have made significant progress in reducing the number of HCRs. Most HCRs for both the UK
and Norway are gas releases. However,
since 1992, none of the gas releases in
Norway were ignited, whereas 1.5% of
the gas and two-phase leaks on the UKCS
were ignited.
Conclusions
Most releases (67%) occurred
during normal production.
Gas releases were the most
common, followed by oil,
condensate, dual-phase,
lube oil, and methanol. Gas
releases showed an even
bigger proportion in major and
significant releases.
Installations in the 25- to 35-year
age range encountered the most
HCRs. Installations older than 35
years had fewer releases.
Most releases came from valve
and pipe systems.
93% of the HCRs occurred on
manned installations.
The relatively small number of
FPSOs and FPFs contributed
disproportionately to the total
number of HCRs (29%).
Inadequate maintenance
and inadequate engineering
accounted for 63% of
HCRs. JPT
JPT AUGUST 2012
Key Elements of a Migrant-Worker

Health and Welfare Program
he Pearl gas-to-liquids (GTL) project

required construction of a stateof-the-art hydrocarbon-processing
facility with, at peak, 55,000 employed
on site. The company created a worker
health and welfare program, with a goal
to enhance health and performance by
creating a culture of care and concern
for the wellbeing of workers throughout
construction and to mitigate projected
risks for a project of such magnitude.
Introduction
Traditionally, construction camps are
high risk and high public exposure. There
has been a historical tendency to leave
the matter of construction-camp planning, design, and management to contractors, with associated risks of underperformance. It is unusual to find a
holistic approach for camps that integrates the material aspects with quality of living conditions, action to create social cohesion, and an appreciation
of overall worker welfare. However, the
realization that there is an opportunity to
go beyond compliance with design standards gave rise to a shift toward use of
behavioral and holistic interventions
to improve the safety culture and attitude
among workers.
The worker-welfare program was
born with the consideration of capitalizing on the caring aspect of safety. Particularly, the program envisioned
to create a facility and community
that show empathy for people, a place
where members of a large multinational/
multicultural workforce live happily and

in harmony with each other, where they
could enjoy high-quality fulfillment of
basic needs and psychosocial support.
Therefore, a holistic approach was used
that aimed at delivering initiatives targeting the entire range of physical, emotional, mental, and even transpersonal needs
of workers in a high-risk work area.
Theory
The challenge of making respect for people visible and objective in Shells practices was given further push in the area of
health, safety, and environmental management. First, in the area of health management, it was imperative in building
projects and in operations that controls
and regulations be in place to protect and
promote the health of employees, contractors, and neighbors by eliminating,
reducing, or mitigating health risks in
theworkplace.
Second, reducing the environmental
and social effect of Shells activities also
was key, especially in the area of providing a grievance procedure or a process
to deal with complaints and other concerns. Actions to ensure effective mitigation of potential negative environmental,
social, and health effects were documented in an auditable issue-management
plan. Close out of this action plan was
monitored closely by line management
because recent experience in the Shell
Group shows that insufficient attention
to managing such nontechnical risks can
significantly delay projects and pose a
risk to reputation.
of paper SPE 151765, Key Elements of a Migrant-Worker Health and Welfare Program
and Its Effect on a Major Construction Project, by Israr Ahmed and Herman Wirtz,
Qatar Shell; Robin Patrick Donnelly and Alistair Fraser, Shell International; and
Salvador Castillo, Qatar Shell, prepared for the 2012 SPE Middle East Health, Safety,
Security, and Environment Conference and Exhibition, Abu Dhabi, 24 April. The
Third was the contribution of concepts and practices within the heartsand-minds roadmap, which hypothesized that outstanding health, safety,
security, and environment (HSSE) performance can be made possible only
if the organizational HSSE culture is
right also. For the Pearl GTL project,
this thrust to ensure proper HSSE culture was taken beyond the worksite
and was embedded in the actual living
environment of the people. This vision
set the direction in which worker welfare needed to be implemented. It laid
the groundwork for setting the heart of
the welfare philosophy that states, A
happy, cared-for workforce is a productive workforce. First is the belief in a
safety culture wherein leadership, all the
way down to the workers, has a personal commitment to wanting to work safely so that everyone can go home safely.
Second is the translation of this belief
into investing in the primary resource of
any organization (its people), whereby
investing means caring for the people.
Methodology
There were no benchmarks to use in
studying and quantifying the effects of
such programs in this setting. A descriptive method of research was deemed
appropriate to quantify any effects of
the program. Specifically, the casestudy method with interviews was used
to determine key performance indicators (KPIs) that can be quantified and
measured. Thereafter, a comparativeanalysis method across different Shell
projects was used to ascertain the effects
of the program in terms of identified key
areas of projects.
Sampling
Because of a lack of standards dictating practices and procedures to conduct
worker-welfare initiatives inside or outside of Shell, interviews were conducted
JPT AUGUST 2012
117
Welfare team
and training
Recognition
8%
programs
15%
Communications
facilities
10%
Medical and
psychological care
and support
12%
Nutrition
20%
Quality of living
accommodations
20%
Recreation
15%
Fig. 1Relative ranking of worker-welfare categories.
of staff (Shell and contractors) from various projects. A sampling method was
used that identified key project stakeholders. These spanned a spectrum in
terms of seniority, including workers,
supervisors, HSSE managers, project
directors, country occupational-health
advisors, and camp managers.
The study process was carried out in

three phases. First was the gathering of
data across different projects in Shell.
The idea was to compile enough information to come up with KPIs for the welfare program. Data collection was facilitated through interviews of key people
within the Shell organization worldwide

who had experience in setting up initiatives that were similar to or related in
form, function, or purpose to what was
set up within the Pearl GTL project, particularly in Pearl Village. To ensure as
wide a scope as possible, information
was gathered from liquefied-natural-gas
(LNG), petrochemical, similar GTL, and
gas-processing facilities and projects of
Shell in the Europe, Middle East, Africa,
and Asia Pacific regions.
Second, KPIs where defined and
compared against existing Shell standards that regulated practices and procedures across the company in terms
of construction and camp management.
WHAT COULD HAVE HAPPENED
WHAT HAPPENED
Equipment and Processes
Unmitigated scenarioprojected situation

without case for change
Mitigated situationperformance to
date*** on Project A
1316 construction-related fatalities*
1 construction fatality
190 NADs**
53 NADs
NAD rate of 1.2 deaths/1,000 manyears, or 2Sakhalin LNG
NAD rate of 0.33 deaths/1,000 manyears, a third of what had been

anticipated and 30% lower than
Sakhalin LNG
Large number of riots, strikes with

potential impact on progress (plus
associated net-project-value effect
TRCF of 4.5 (average industry rate)
Limited number of cases of worker

unrest considering size of workforce,
no strikes (no effect on net project value)
TRCF of 1.25
***Based on 810 construction fatalities for (anticipated) minimum man hours, and factored up to Project A
***current man-hours spent
***Based on factoring current NAD number of Project A with Southeast Asia NAD Rate of 1.2 deaths/1,000 man-years
***(vs. Project A, 0.33 deaths/1,000 man-years). Data as of January 2011.
***January 2011.
Fig. 2Worker-welfare-program performance.
118
This step enabled researchers to assign

individual scores to each KPI. Key elements essential within a welfare program
then were given weightings, according to
their importance, and were ranked.
Third, a calculated worker-welfare
index was derived that enabled researchers to compare several Shell
projectsworldwide.
After all these steps had been completed, several project KPIs for HSSE,
quality, and progress/productivity were
compared against the worker-welfare
index of other major construction projects to identify a trend or correlation
between worker-welfare performance
and project performance.
KPIs and Worker-Welfare Index

To convert the categories into quantifiable terms, researchers assigned each
variable a weighted score by comparing
the variables against established Shell
standards in construction management.
The weightings were obtained through
interviews with a wide spectrum of stakeholders: project managers, HSSE managers and supervisors, health advisors,
camp managers, workforce supervisors, and workers. Once weights were
obtained, a relative percentage of their
importance and ranking was derived,
showing nutrition and quality of living
accommodations as scoring the highest,
as shown in Fig. 1.
The weightings, along with the scoring of the projects against each of the
variables, allowed researchers to determine a calculated worker-welfare index
that was used to compare different projects within the Shell Group.
Migrant-Worker-Welfare
Program
HSSE. There appears to be a trend that
the higher a projects worker-welfareindex score is, the lower (better) its
scores are on HSSE variables such as total
recordable case frequencies (TRCFs),
fatalities, nonaccidental-death (NAD)
rate, and worker unrest.
Note that the NAD rate was based
on 20% completion for Projects A and
C. This basis was to account for significant commercial difficulties that arose
on Project C after this point that may
have distorted the results because it was
difficult to introduce mitigation mea-
JPT AUGUST 2012
sures that would involve any commercial agreement. Projects B and D were
omitted for data-integrity reasons.
Also, it could be said that the Pearl
GTL worker-welfare program played a
key role in mitigating HSSE risks. This
was obvious when actual performance
figures where compared against projected HSSE risks, as shown in Fig 2.
Quality. There was a significant effect
on quality with respect to leak rates.
It appears that increasing the workerwelfare index decreased commissioning leak rates. The comparison in leak
rates was made during high-pressure
tightness tests (on the basis of flange
count) on a major subproject of Project
A against a major subproject of Project
B, with the same contractor involved in
the same region. No data for tightness
tests were available for Projects B and D.
Progress. Increasing the worker-welfare
index appeared to produce a 50 to 60%
increase in relative and absolute productivity. Productivity measures were in
terms of direct man hours earned/spent
and field welding.
Conclusions
A worker-welfare program can have
key elements that can be measured or
translated into quantifiable parameters. Foremost among these elements
are the areas of nutrition and quality of
livingaccommodations.
Considering three constructionproject KPIs, implementing a workerwelfare program had an effect and contributed toward better project performance. Specifically:
HSSE: up to 90% reduction in
fatality rates, 60% reduction in
TRCF, 30% reduction in NAD
rate
Quality: 67% fewer leaks during
commissioning
Productivity: 50 to 60% higher
workforce productivity in Project
A vs. Projects B and C.
Ultimately, worker welfare should
be viewed as a part of a holistic approach
toward managing a project, including
the hearts-and-minds concept, lessons
learned, risk management, and many
other aspects. JPT
JPT AUGUST 2012
CONFERENCE PREVIEW
Annual Conference Focuses on

Unconventional Wisdom
Gentry Braswell, JPT Online Technology Editor
The theme of SPEs 88th Annual Technical Conference and Exhibition (ATCE) is
Unconventional Wisdom. The event, which also serves as the societys annual meeting,
will take place 810 October at the Henry B. Gonzalez Convention Center in San Antonio,
Texas. Current applications and future technologies will be featured in more than 400
peer-selected technical papers. More than 400 exhibiting companies will showcase the
latest technologies, new products, and industry services.
This year, ATCE has an expanded technical program and special events focused
on projects, facilities, and construction.
Technical demands for this discipline are
changing, and SPE is bringing the latest
technologies, discoveries, and solutions
to its annual conference.
Opening General Session

The state of practice of unconventional
oil and gas operations will be the subject
of the opening general session, Making Unconventionals Conventional, on
Monday morning. A panel will discuss
the technical and financial challenges of unconventional production, such
as resource size, drilling and completions, safety, and the environment. Mark
Albers of ExxonMobil, Timothy Dove
of Pioneer Natural Resources, Steve
Holditch of Texas A&M Energy Institute, and Dave Lesar of Halliburton are
thepanelists.
Panel Sessions
State-of-the-art techniques and tools for
managing large projects are the key topics of Tuesdays panel session, Challenges in Projects, Facilities, and Construction. The moderators are Jeff
Sawchuk of BP and Bob Hubbard of JM
Campbell. Dick Westney of Westney and
Associates, Cheryl Wiewiorowski of BP,
Mike Mileo of Chevron, and John Walsh
of Shell are the panelists.
120
Case histories about collaborative

upstream technologies and work settings are the subjects of the second panel,
Organizational Change Management
through Collaborative Technology and
Environments, on Tuesday. Work transformation and change management will
be an important part of the discussion.
Keith Killian of ExxonMobil and Julian
Pickering of Digital Oilfield Solutions are
the moderators. The panelists are Sami
Al-Neaim of Saudi Aramco, Adel Al Abbasi of Kuwait Oil, Michael Hauser of Chevron, Mark Lochmann of Halliburton, and
Guillermo Arango of Baker Hughes.
Authorities representing the diverse
points of view of operators, service companies, academia, banking and finance,
and consultation and advisory firms will
convene for Tuesday afternoons Creating Value with Unconventional. Randal
Brush of William M. Cobb and Associates,
and Bradford Larson of Societe Generale
are the moderators. Panelists are Alan
Farquharson of Range Resources, William J. Haskett of Decision Strategies,
William N. Knecht of Gaffney Cline Associates, A. Lance Langford of Statoil, John
Lee of the University of Houston, David
E. Roberts of Marathon Oil, and Brady
Rodgers of JP Morgan.
Perspectives, lessons learned, and
best practices in working on unconventional plays are the topics of the panel session, Education, Recruiting, and Train-
HOLDITCH
HUBBARD
ing for the Unconventional World,

on
Wednesday.
Moderators are
Luciane Cunha of
Petrobras America and Frank Platt
of Texas A&M UniKNODE
versity. The panelists are Tamir Aggour of Saudi Aramco,
Terry Savoie of Shell, Felix Soepyan of
Baker Hughes, John Lee of the University
of Houston, Christine Ehlig-Economides
of Texas A&M University, and Valerie
Jochen of Schlumberger.
Topical Luncheons
Several major offshore well integrity
incidents and heightened public concern about hydraulic fracturing have
led to increased attention to subsurface
hydrocarbon containment in the past few
years. Research and development needs
regarding subsurface containment and
its challenges are the subjects of the first
topical luncheon on Tuesday.
JPT AUGUST 2012
THAKUR
IMOMOH
Unconventional reservoir survey

management, challenges caused by surveying technologies, and avoidance of surveying pitfalls are the topics of a second
topical luncheon on Tuesday. Robert Wylie
of National Oilwell Varco is the moderator.
The speakers are Bill Allen of BP and chairman of SPEs Wellbore Positioning Technical Section, Kyel Hodenfield of Schlumberger, and Angus Jamieson of the University of Highlands and Islands.
Special Sessions
The pitfalls of and strategies for partnering with communities are the topics of Partnering with Communities in
Order to Maintain Our License to Operate on Monday. The moderator will be
Tom Knode of Halliburton.
Lessons learned in applied enhanced oil recovery techniques are the
focus of EOROut of the Lab and Into
the Field, on Tuesday. Gene Narahara of
Chevron Energy Technology Company is
the moderator. The panelists are Cosan
Ayan of Schlumberger, Danielle Morel of
Total, Gary Jerauld of BP, and Greg King
ofChevron.
Arctic, deep water, and subsea are
examples of remote locations where reliable separation technology has become
essential for the development of resources. Heavy oil, produced water, and sand
disposal are examples of more challenging applications in which separation technology is also pivotal. Emerging
technology trends and design challenges of conventional separators will be the
focus of Knowledge Sharing on Separations on Wednesday. The moderator is
Robert Chin of Shell.
Other Special Events

Industry experts in drilling systems automation will offer updates on their sys-
JPT AUGUST 2012
tems, technologies, and projects during

the Drilling Systems Automation Technical Session Presentation Series on
Sunday afternoon. Non-oilfield companies will also present potential oilfield
applications of advanced automation
androbotics.
Lyn Arscott, an SPE past president,
will give the keynote presentation at the
25-Year Club Breakfast on Monday morning. The club is a special lounge for SPE
members who have 25 or more years
of continuous membership, Legion of
Honor members, Century Club members,
and other invited guests. It is opendaily.
Some of the largest and most innovative projects from a facilities and construction point of view will be recognized during the Learning from Facilities Megaprojects dinner on Monday
evening. Panelists will describe efforts
in the concept, design, execution, and
production of the projects. The rapid
installation of facilities in Saudi Arabia,
Brazils large offshore facilities, deepwater projects in the Gulf of Mexico, and
the Canadian oil sands development
are among the projects that will be discussed. Ken Arnold of WorleyParsons is
the moderator.
Key SPE and overall industry successes will be celebrated at the Annual
Reception and Banquet on Tuesday evening. Distinguished SPE members who
have made significant contributions to
the industry will also be honored.
During the Presidents Luncheon
and Annual Meeting of Members on
Wednesday, 2012 SPE President Ganesh
Thakur will share industry and SPE
achievements, and new initiatives that
will benefit members. Luncheon attendees will also be able to meet the SPE
Board members, the incoming 2013 SPE
President Egbert Imomoh, and SPE Distinguished Members.
Young Professionals, Students

SPE will provide networking activities
at a student meet and greet session on
Sunday morning. At the student general session and awards luncheon that
follow, the Gold Standard Achievement
Student Chapter winners, Outstanding
Student Chapters regional winners, and

scholarship winners will be recognized.
Petroleum engineering students can discuss challenges, issues, and ideas for the
future of the industry with petroleum
engineers at the Student Great Ideas Session on Sunday afternoon. SPE student
chapter officers can collaborate on and
discuss new ideas and best practices during the Student Chapter Officer Workshop on Sunday evening.
The 11th annual PetroBowl is a popular quiz panel tournament that tests the
knowledge of SPE and the upstream sector. A reception for the student chapter
teams will immediately follow the event
on Monday. The International Student
Paper Contest will feature competitors
from around the world in the undergraduate, masters, and PhD divisions on
Monday. The Young Professionals Reception will take place the same evening.
Young professional and section liaisons will have the opportunity to collaborate at the Student Chapter Faculty Advisor Session on Tuesday morning. Technical skills, soft skills, and teamwork
within a cross-generational team are the
focus of the Cross-Generational Program
on Tuesday. In this new event, teams will
hone their communication, negotiation,
and collaboration skills by solving problems in a case study. The event is supported by the SPE Soft Skills Council, the SPE
Young Professionals Coordinating Committee, and the SPE Talent Council.
The Energy4me Energize Your
Classroom Teacher Workshop invites
100 San Antonio-area science teachers
(grades 4 to 12) to attend a free, 1-day
energy education workshop on Wednesday. The teachers will learn about the scientific concepts of energy, and receive an
introduction to oil and gas exploration
and production. About 200 high school
students will see firsthand the exciting
opportunities in the industry at the Energy4me High School Student STEM Event
on Wednesday. They will perform handson experiments and explore advanced
technology on the exhibition floor. JPT
For more information about ATCE, visit
www.spe.org/atce/2012/.
121
SPE PROGRAM
SPE DISTINGUISHED LECTURER

PROGRAM 201213
Featuring 28 speakers from various disciplines and professions, the 201213 Distinguished
Lecturer Program emphasizes current industry trends, challenges, and technology through
diverse topics. Subject areas and speakers featured in this years program are listed here.
Advancement in Sand Control Fluid Technology

The number of reservoirs requiring sand control is growing at
a fast pace. Fluids play an important role in successful design,
execution, and performance of sand control completions. This
presentation will familiarize the audience with key fluid technologies, examine benefits and limitations, review development processes, demonstrate success with the aid of case histories, and identify technology gaps.
Bala Gadiyar is a principal engineer at Schlumberger in
Houston. He holds a BS degree from the University of Pune and
MS and PhD degrees from the University of Oklahoma, all in
petroleum engineering.
Improved Recovery and Reduced Costs With

Intelligent InterventionsMake Your Wells
Intervention Friendly
This presentation will offer an operational perspective on the
state of light intervention technology available in the industry and how it is changing the way some operators design their
wells for intelligent interventions by making them more intervention friendly. It will also discuss the merits of integrating
more contingency planning into subsea, intelligent, and unconventional wells based on light well intervention experience
within theindustry.
Brian Schwanitz is a graduate of Michigan Technological
University in applied geophysics and has worked in the oilfield
service industry for the past 34 years.
Crosswell Seismic: Imaging and Monitoring of

theReservoir
This talk highlights the resolution benefit of crosswell seismic,
including recent technology enhancements in crosswell imaging that make the method suitable in real-world reservoirs and
122
a number of examples from a variety of applications where

crosswell seismic adds economic value in reservoir development, both in high-resolution reservoir characterization and
reservoirmonitoring
Bruce Marion is general manager of DeepLook-CS,
Schlumberger, in Houston. He has been involved in crosswell
seismic technology and operations for more than a decade.
Carbon Capture and Storage SWOT Analysis:

WillWeImplement the CCS Solution?
The component technologies upon which carbon capture and
storage (CCS) is based have long, successful histories. Despite
years of effort, large-scale projects where CO2 is captured from
electric generation plants and stored in the ground are almost
nonexistent. A strengths, weaknesses, opportunities, and
threats (SWOT) analysis of the CCS business provides insight into
whether and how CCS will play a role in carbonmanagement.
Charles E. Fox is vice president of operations and technology at Kinder Morgan CO2 Company in Houston. Fox holds an
MS degree in petroleum engineering from Stanford University
and a BS degree in mechanical engineering from RiceUniversity.
Dalia/CameliaWorlds First Deep Offshore

Polymer Flood Implementation
Despite the enthusiasm that developed in the 1980s for
enhanced oil recovery (EOR) techniques, EOR is still used in
only a small percentage of world oil production projects. The
Dalia/Camelia polymer injection that started late December
2008 in Angola is the worlds first deep offshore EOR implementation. The Dalia/Camelia polymer flooding project is still
on the learning curve, but it opens the door to many other polymer projects offshore.
Danielle Morel is currently an EOR expert at Total. She
holds a PhD degree from the University of Toulouse in modeling of gas condensate.
JPT AUGUST 2012
Best Practices for Multizone Isolation Using

Composite Plugs
Treatment isolation using composite plugs (CPs) has been practiced for about 2 decades in North America and continues to be
among the most economical ways to stimulate horizontal and
multilayer vertical wells. Despite this long experience, many
end users still experience problems. This presentation identifies best practices for using CPs, based on technical literature,
field experience, and manufacturers published data.
Doug Lehr is an engineering manager at Baker Hughes
in Houston and has more than 30 years of experience in
the development of downhole tools for production and well
servicingapplications.
Proper Proppant Selection: Well Productivity

Depends On It
Establishing and maintaining fracture conductivity is critical for a well to deliver the highest possible production rates
and ultimate recoveries. This presentation presents the factors critical to proper proppant selection and, ultimately, proppant performance. This presentation will show how to select
the correct proppant and the importance and significance of
fractureconductivity.
Frank Syfan, US Silicas technical director for oil and gas,
has more than 31 years of global completions and operations,
hydraulic fracturing, and reservoir optimizationexperience.
Tullow GhanaDeepwater Extended-Reach

DrillingExperience
Extended-reach drilling (ERD) carries a well-understood list
of technical challenges. Many of the deepwater ERD challenges encountered by Tullow Ghana are touched on in this presentation, and three are discussed in some detailhole cleaning, borehole stability, and wellbore surveying.
Fraser Lawson is the well-engineering supervisor for
Tullow Ghana. He has more than 25 years of international
well-engineeringexperience.
Nonconventional Geomechanics for

UnconventionalResources
Geomechanics for unconventional resources is different
from that for conventional reservoirs because of the intricacy
imposed by inelastic matrix behavior, stress sensitivity, existence of cleats and natural fractures, rock rheology, and different pressure/temperature environments. This presentation discusses the geomechanical aspects of unconventional resourc-
JPT AUGUST 2012
es and how they add value to the development of this type

ofreservoir.
Hamed Soroush is a geomechanics advisor for the
Well Engineering Center of Excellence at Weatherford Oil
Tool in Dubai. He holds a BS degree in mining engineering, an MS degree in rock mechanics, and a PhD degree in
petroleumengineering.
How Smart Is the Intelligent Technology for

Simulators and Field Production Management?
What is a smart or intelligent well? Several definitions can be
found, such as a well that has measurement or control capabilities in the region of its completions. This can be improved
to indicate that a well system could be called intelligent if,
and only if, it adds value to the project during its life cycle.
To add value to a project, reservoir management needs to
improve beyond the reservoir engineering discipline, thus
becoming a multidisciplinary, integrated team effort.
Iber N. Alves is a senior technical advisor for artificial
lift and flow assurance at Petrobras, where he has worked for
31 years.
Increasing Production With Better Well

Placement in Unconventional Shale Reservoirs
Challenges andSolutions
Unconventional reservoirs are often regarded as resource plays
with little demand for reservoir analysis beyond simple geosteering techniques during the development campaign. This
leads to the common practice of stimulating wells with equally
spaced stages and treating all the stages exactly the same, with
no regard to the nature of the rock being treated. The practice
of steering to brittleness or similar techniques can have a direct
impact beyond simple well placement. Given a map of geomechanical properties along the wellbore, completion engineers
can optimize the position of plugs or packers, and stimulation
engineers can fine tune the design of the treatment applied
to the rock. By re-establishing the link between production
and geology, these methods can decrease exploitation costs of
unconventional reservoirs.
Jason L. Pitcher is the global well placement solutions
champion for Halliburton, Sperry Drilling, in Houston. He holds
a BS degree in geology from the University of Derby and an MS
degree in mineral exploration from Imperial CollegeLondon.
A Methodology to Design Exploratory Wells

This presentation will describe the well-management process
used by Petrobras to design and drill exploratory wells. The
case of an ultradeepwater well drilled in the Black Sea will be
123
SPE PROGRAM
examined. Ranked as a well of the highest complexity level, the
drilling of this wildcat deepwater well has faced a number of
expected hazards, such as the presence of shallow gas zones,
long abnormally pressurized intervals, and low fracture pressure gradient sections.
Luiz Alberto Santos Rocha is the senior adviser in
the Operating Group of Petrobras International. He holds a
mechanical engineering degree and an MBA from the Pontifical Catholic University of Rio de Janeiro and a PhD degree from
Louisiana State University.
nology development, a discussion of the two main types of

multistage completion technologies being employed together
with the application of cross-linked and slickwater fracturing,
and a review of current applications and results.
C. Mark Pearson is president of Liberty Resources, a
Denver-based independent E&P company. He is an SPE Distinguished Member who has more than 30 years of experience in
the E&P and oil and gas service industries.
Geological Storage of CO2Reservoir

EngineeringConsiderations
Heat Mining at the Geysers Geothermal Field
Using Reclaimed Wastewater
The Geysers in Northern California generate more than
1,000 MW of electrical power. This presentation provides an
overview of two case studies using reclaimed wastewater from
surrounding regions and injecting it into wells at the naturally
fractured steam reservoir at the Geysers. Conventional petroleum engineering techniques played a key role in the success of
theseprojects.
Marina Voskanian is the assistant division chief of the
California State Lands Commission. She is a registered petroleum engineer and holds graduate degrees in petroleum engineering from the University of Southern California.
Stimulation Optimization of Unconventional

ResourcesImproved Numerical Modeling from
FirstPhysics
Emerging numerical techniques are available that can address
hydraulic fracturing in naturally fractured formations, such as
shale gas, and that are based upon the proper first physics of the
mechanical and flow behavior of fractured formations. These
techniques will allow the industry to gain greater insight and
understanding of how natural fracture geometry and intensity,
fracture hydromechanical properties, and stress fields affect
hydraulic fracturing performance in the presence of different
operational parameters.
Marisela Sanchez-Nagel is principal engineer and general
manager for Itasca Houston. She holds a BS degree in mining
engineering, a masters degree in geotechnical engineering, and
a PhD degree in geological engineering.
Reservoir engineers deal with pressure and compositional

effects in petroleum reservoirs. The same effects are important for geological storage of CO2. However, particular challenges could arise as a result of large volumes and limited reservoir characterization. These will be demonstrated in this
presentation through case studies. In all cases, the flow paths
identified during primary production of the reservoir were
insufficient to determine flow paths that the displacing CO2
stream took. Also, the underlying concepts of CO2 sequestration in the form of solid hydrate will be presented with some
simulation results.
Mehran Pooladi-Darvish is vice president of engineering
at Fekete Associates, where he leads the reservoir modeling and
simulation group. He holds a PhD degree in petroleum engineering from the University of Alberta.
LNG Basics for Petroleum Engineers

While remote parts of the world are awash with hundreds of
Tcf of natural gas, the industrialized West and emerging economies of the East cannot get enough of the clean-burning,
environmentally friendly fuel. This presentation will provide an overview of natural gas liquefaction facilities, from
inlet gas receiving to liquefied natural gas (LNG) storage and
loading. However, the focus is on the liquefaction process
andequipment.
Michael Choi is a process engineering fellow in ConocoPhillips Global Production Department in Houston. His specialties are production facilities, sour gas treating, andLNG.
Advances in Reservoir Management

Technologies
Hydraulic Fracturing of Horizontal Wells
Realizingthe Paradigm Shift That Has Been
30Yearsin Development
Horizontal drilling as a field development technique was pioneered in the early 1980s. This presentation is divided into
three sectionsa review of horizontal well stimulation tech-
124
Technologies for optimization of reservoir management strategies have made significant advances in the areas of real-time
reservoir monitoring, interval flow control, and downhole flow
measurement. Installation of downhole sensors and inflow control devices with communication links in many wells have created a new class of smart/intelligent wells. Smart/intelligent
JPT AUGUST 2012
wells are equipped with devices that enable remote monitoring,

control, and transmission of data from multiple zones, thereby optimizing reservoir performance and reducing intervention costs.
Nnaemeka Ezekwe holds BS, MS, and PhD degrees in
chemical and petroleum engineering and an MBA degree from
the University of Kansas.
ment where procedural noncompliance represents a way to

achieveperformance.
P.T.W. Hudson was project leader of the Tripod research
program for Shell and was part of the team that developed
Shells approach to safety management systems after the Piper
Alpha disaster. He also advises BP, where he is a distinguished
advisor to the Safety Culture and Leadership program.
Methods and Workflows to Process Dynamic

Data in Intelligent Fields
Risk Tolerance and Risk Neutrality (You Can Live

With More Risk Than You Think)
Well tests have been the primary source of dynamic data in the
past. In recent years, these operations were complemented and
sometimes replaced by a variety of tools that provide dynamic
rate, pressure, and temperature data at different scales in volume and time. Similar evolution was observed in analysis methods, moving from classical well-test interpretation to a variety
of analysis and modeling methods focused on interpreting and
forecasting dynamic data.
Olivier Houz holds an engineering degree from Ecole
Polytechnique and an MS degree in petroleum engineering from
Stanford University.
Many E&P companies impose a risk threshold on major capital

projects. The key concept of this presentation is that risk tolerance should be applied at the portfolio level, not the project
level. The question to ask is not, Am I comfortable with the risk
associated with this project? Rather, it is, Am I comfortable
with the risk associated with my portfolio of assets when this
project is included?
Patrick Leach is the chief executive officer of Decision
Strategies. He has 30 years of experience in the energy industry,
primarily in upstream oil and gas.
Shale Resource Assessment and Development

FullLife-Cycle Integrated Approach
The design, planning, and implementation of systematic and
scalable field demonstrations are essential elements required to
address strategic, development, and operational issues. Mechanistic studies are used to understand the key production drivers. Shale gas productivity is typically much lower than conventional reservoir systems and often lower than tight gas reservoirs. This presentation will demonstrate that new processes
and advances in field demonstrations and mechanistic models
are key factors required for appraisal and development of global shale resources.
P.K. Pande is director of reservoir technology with
Anadarko Petroleum. His responsibilities include managing an
integrated team of subsurface professionals in the application
of subsurface technologies and best practices.
Developing an Advanced Safety Culture

Noncompliance and the Just and Fair Culture
Recent analyses of major incidents have highlighted the crucial role played by the safety culture of organizations. This presentation will describe a new approach that meets the requirement for advanced safety cultures that they be just and fair
and be seen as such by all parties without allowing individuals to get away with reckless violations and while recognizing that people often find themselves working in an environ-
JPT AUGUST 2012
125
SPE PROGRAM
Putting the Energy Industry in Perspective

Energy is the most important commodity that defines the modern world. For those who want a more balanced view and want
to be intelligent contributors to the debate on energy and the
environment, this talk will be both enlightening and entertaining. Its conclusions may be surprising and disturbing, but that
does not make those conclusions any less compelling.
Phil Rae is the director of InTuition Energy Associates, a
training and consulting company based in Singapore. He has
been involved in the oil industry for more than 30 years.
Understanding Liquid Loading Will Improve

WellPerformance
The purpose of this presentation is to provide an overview of
historical techniques for detecting liquid loading and to provide modification to the classical Turner methods that address
contemporary well design. The discussions will include recent
advances that address the proper evaluation point based on reservoir and well conditions. The talk will also compare the modified Turner methods to the use of multiphase flow pressure
drop models for predicting liquid loading and will demonstrate

the superiority of using a modified Turner method to determine
critical velocity.
Robert P. Sutton is a senior technical consultant for Marathon Oil in Houston. He holds a BS degree in petroleum engineering from Marietta College and an MS degree in petroleum
engineering from the University of Louisiana atLafayette.
The Impact of Data Reliability on the DecisionMaking Process

This presentation focuses on explaining the value of data in the
decision-making process and the role of data reliability in making decisions. The audience will learn about techniques that
can be used to quantify the value of data, the role they play in
informing our decisions, and how diagnostic reliability can
affect those decisions. This presentation will be of interest to
engineers, geoscientists, and their managers who need to justify the acquisition of new data.
Simon Stromberg is the global head of petrophysics for
Senergy and has more than 20 years of experience in geology,
petrophysics, and project management.
What Do We Have to Do to a Drilling Fluid to

Maximize Well Productivity?
Reducing formation damage to zero can be very difficult; however, it can be significantly lowered by following simple principles. Designing the correct bridging package should be seen
as a very cost-effective and simple step in drastically improving a fluids performance. This presentation will explain this
straightforward but underutilized process. If the correct information is available, it is relatively straightforward to apply
certain processes to fluid design that can be a huge benefit to
wellproductivity.
Stephen Vickers is the eastern hemisphere technical manager for reservoir services for Baker Hughes Drilling Fluids. He
has worked for 25 years in the oil industry, first as a drilling engineer and then moving into well fluids and chemical engineering.
Wonderful World of Coiled Tubing

Coiled tubing (CT) services are one of the fastest growing oilfield technologies. There are 1,881 CT units operating worldwide today, compared with 1,163 in 2005 (62% more). The success of a treatment profoundly depends on the proper selection
of fluids and their properties. Even though fluids are widely
used in all CT services, little attention has been paid to thoroughly test, evaluate, and understand the behavior of complex
fluids. The lecture will highlight recent research findings with
several fluids and also present appropriate correlations for
their proper hydraulics predictions.
Subhash N. Shah is the Stephenson Chair professor in
the School of Petroleum and Geological Engineering and also
the director of the Well Construction Technology Center at the
University of Oklahoma. He holds BS, MS, and PhD degrees, all
in chemical engineering.
Smart Water Flooding in Carbonates and

Sandstones: A New Chemical Understanding
oftheEOR Potential
When injecting smart water with a different ion composition
than the initial formation water, it is possible to modify the
wetting condition of the reservoir in a favorable way, which can
have dramatic effects on oil recovery, especially in carbonates.
In order to benefit from smart water, it is important to have a
good knowledge of the chemical process taking place at the rock
surface. New chemical understanding about water-based EOR
by wettability modification both in carbonates and sandstones
will be presented, and the EOR potential will be verified.
Tor Austad is a professor in reservoir chemistry at the
University of Stavanger. He holds MS and PhD degrees in physical chemistry from the University of Bergen. JPT
JPT AUGUST 2012
PEOPLE
At its annual board

of directors meeting,
the Society of Petroleum Evaluation Engineers (SPEE) elected a
new executive commitASHTON
HOLROYD
tee. The SPEE board consists of 13 members, four
of whom are elected to
the executive committee
in which they serve progressive year-long terms
as secretary/treasurer, vice president, presKRENEK
WATSON
ident, and then pastpresident. BARRY ASHTON, SPE, chief operating officer of
AJM Deloitte, moves to the position of SPEE past-president;
SAMANTHA (MEADOR) HOLROYD, SPE, director at Denham Capital, joins the SPEE executive committee as secretary/
treasurer; RICHARD KRENEK, SPE, vice president at Netherland, Sewell & Associates, will progress into the role of SPEE
vice president; and MARSHALL WATSON, SPE, assistant
professor in the Bob L. Herd Department of Petroleum Engineering at Texas Tech University, was elected SPEE president.
MicroSeismic appointed ROBERT (BOB)
DANIELS, SPE, as an independent member of its board of directors. Daniels is
senior vice president of worldwide exploration at Anadarko Petroleum. He joined
Anadarko in 1985 and was appointed to his
present position in 2006. Previously, he
served as senior vice president, exploration and production
(E&P), before that serving as vice president, Canada. Daniels
serves on the board of directors of the Cerebral Palsy Research
Foundation and Junior Achievement of Southeast Texas. He is
a trustee of the American Geological Institute Foundation.
Daniels holds a BA in economics from Colorado College and an
MS in petroleum geology from the Colorado School of Mines.
He also is a graduate of the Harvard Business School Advanced
ManagementProgram.
Member Deaths
Herman R. Brown, Houston, Texas
Fabrice D. Cuisiat, Oslo, Norway
Brian J. Jennings, Irving, Texas
Glen M. McFarlin, Blanco, Texas
Stanley C. Phipps, Dallas, Texas
Phillip R. Russell, Austin, Texas
128
Murphy Oils board of directors named

ROGER JENKINS, SPE, to the newly created position of chief operating officer. He
joined Murphy in 2001 and was named
executive vice president of E&P in 2009. He
has played a leadership role in the companys worldwide E&P operations, including
the development of the Kikeh field in Malaysia and the Eagle
Ford shale in south Texas. Before joining Murphy, Jenkins
spent 17 years with a major oil company. He earned a BS
degree in petroleum engineering from Louisiana State University and an MBA from Tulane University and completed the
Advanced Management Program at Harvard Business School.
VARAGUR S.V. (RAJ) RAJAN, SPE,
received the 2012 Seniors Association of
Greater Edmonton (SAGE) Award in the
Science and Technology category for his
contributions to the advancement of science through research in heavy-oil production. He is a principal researcher at Alberta
Innovates Technology Futures, formerly the Alberta Research
Council, where he has worked as a chemical engineer since
1982. As an active member of the Association of Professional
Engineers and Geoscientists of Alberta (APEGA), Rajan has
mentored many students, earning him the APEGA Summit
Award for Community Service in 2008. In 2009, he was honored as a Fellow of Engineers Canada for his service to the
Canadian engineering profession. Rajan is a technical editor
for SPE Reservoir Evaluation & Engineering and has served as
an editor for other SPE journals. He has published numerous
technical papers and been awarded seven patents. Rajan
earned his BChE degree from Delhi University, MTech from
the Indian Institute of Technology Kharagpur, and PhD from
the University of New Brunswick, Fredericton.
OONAGH WERNGREN, SPE, MBE, was
appointed business manager (external
affairs and supply chain) at GDF Suez. She
has more than 30 years experience in the
oil and gas industry working for a number
of international organizations, including
Tricentrol Oil, ARCO British, and BP.
Recent leadership roles have included optimization and innovation manager (Alaska), drilling manager North Sea, Clair
field development manager, and head of technology for BP
North Sea. Her most recent position was head of development
for GDF Suez, Paris, where she was responsible for initiating
the global development process for E&P. In June 2011, Werngren was recognized as a member of the Order of the British
Empire for services to the oil and gas industry in Queen Elizabeth IIs Birthday Honours list. She earned a BS degree in geology and an MS degree in stratigraphy.
JPT AUGUST 2012
In Memoriam
HENRY SALISCH, SPE, died in Sydney,
New South Wales, Australia, on 3 May after
a short illness. He was 85. Salischs career
included 37 years in the oil and gas industry
and 26 years in academia. Born in Berlin, he
attended boarding school in England. During World War II, he was evacuated to Ecuador, where his family had relocated. Salisch earned a BS degree
in geological engineering at the Geological Institute of Quito,
Ecuador, in 1949 and later obtained an MS degree in petroleum
engineering at the University of Oklahoma and an MBA at the
University of Caracas, Venezuela. He began his career working
at wellsites in the Caribbean and South America, doing log
interpretation and training. During the first 28 years of his
career, he worked with Anglo-Ecuadorian Oilfields and Schlumberger. Following that, he was exploration manager and a
researcher for Petrleos de Venezuela.
In 1986, he moved to Australia and worked for 26 years as
a senior lecturer with the School of Petroleum Engineering at
the University of New South Wales (UNSW) in Sydney, special-
izing in petrophysics and formation evaluation. He published

more than 20 papers, consulted worldwide on oil and gas projects, and presented countless training courses. Salisch was
president of the SPE New South Wales/Australian Capital Territory Section during 1990 and was named an SPE Distinguished
Member. He earned membership in SPEs Legion of Honor,
served on many SPE committees, and mentored and was liaison
of the SPE Student Chapter at UNSW.
Salisch helped shape the UNSW School of Petroleum Engineering, participating particularly in recruiting. During his
peak recruiting years, he regularly visited more than 50 schools
in Sydney and throughout NSW, as well as in Canberra. Many
alumni attribute their start in the oil and gas industry to him. As
a teacher and advisor, Salisch was revered by his students. He
was an award-winning Rotarian, who joined in 1951 and served
in 11 clubs in seven countries on three continents. Ian Davidson,
fellow member of Sydneys Wahroonga Rotary Club, described
Salischs philosophy as, Believe in what you do. Do what you
believe in. He is survived by his wife, Barbara, and daughters,
Diana and Mariela.
In Memoriam
by R. Lyn Arscott, 1988 SPE President
JOSEPH E. WARREN, SPE, died 16 June
2012. He was 85. Warren had a special aptitude for the evaluation of oil and gas fields.
His sound understanding of fluid flow in
porous media was combined with insightful
economic reasoning and an acute ability to
apply statistical analysis to estimate the
value of a field. He willingly shared his knowledge through
more than 50 technical papers and multiple presentations.
Sometimes, the best discussions with Warren were after
work over a beer. He had a keen intellect; he read widely and
loved to debate anything and everything. He was an excellent
writer and, while serving as SPE senior technical editor, started a column in February 1985 for JPT called In My Opinion
in which the follies of oil companies and producing countries
were elegantly exposed. After each article, SPE staff and board
members would receive comments that were either enthusiastically supportive of or aggressively opposed to Warrens view. He
made people think, and he generated a lot of discussion.
Warrens corporate assignments included serving as general superintendent of reservoir development for Kuwait Oil
Company, director of the Exploration and Production Research
Department at Gulf Research and Development Company,
senior vice president of operations for Santa Fe International, president of Santa Fe Minerals, and chairman of Frontier
Resources International. In this latter assignment, he played
JPT AUGUST 2012
a leading role in the discovery and development of the Thistle

field in the UK North Sea. In 1988, he became director of Frontier Resources International and consulted with a wide variety
of companies worldwide.
Warren was a pioneer in the application of computers to
engineering problems. In the 1950s, he developed numerical
techniques to simulate oil and gas reservoirs. In the 1960s, he
applied a systems approach to oil and gas operations, including
optimization of the transport of oil using very large crude carriers. In the 1970s, he developed strategies for competitive bidding of oil and gas leases.
Warren was an active supporter of SPE throughout his
career and made many contributions to the society. He received
the Anthony F. Lucas Gold Medal in 1984 and the societys highest honor, Honorary Membership, in 2009. As an SPE Distinguished Lecturer, he spoke on operations research in 1972
and upstream decisions in 1986. He was senior technical editor of the SPE Editorial Review Committee during 198284.
In 1993, he was elected to the US National Academy of Engineering for his contributions to petroleum engineering. Warren was a summa cum laude graduate of the University of Pittsburgh with a degree in petroleum engineering, and he earned
a PhD, also in petroleum engineering, from The Pennsylvania
StateUniversity.
The industry and SPE will miss this intellectual, largerthan-life character.
129
SPE NEWS
SPE SERVICE DIRECTORY

SPE Online www.spe.org
2015 SPE Board of Directors

Nominations Opening Soon
Nominations for open positions on the 2015 SPE Board of Directors will be accepted from September through 15 December. The
presidential nomination period ends 1 December.
Next years list of open positions, nominee qualifications,
nomination forms, and submission guidelines will be available in
September at www.spe.org/about/nominate.php. To make a nomination, an online form must be filled out and supporting documents must be provided such as a curriculum vitae, a resume, and
SPATH
letters of support.
Nominees recommended for the 2014 SPE Board of Directors became 2013 incoming board members on 1 June. The 2014 SPE President Jeff Spath along with nine other
board nominees were announced in April.
Offshore Technology Conference is Coming to Asia

The inaugural Offshore Technology Conference Asia will take
place at the Kuala Lumpur Convention Center in Kuala Lumpur,
Malaysia, on 1012 March 2014.
By taking the OTC to other global regions with expanding offshore development activities, the organization is better able to reach a broader audience. This biennial event follows the 2011 launches of the Arctic Technology Conference and
OTC Brasil. For more information, contact Cordella Wong Gillett
at cwonggillett@spe.org.
Awards Program
Contact: Tom Whipple
Phone: 1.972.952.9452
twhipple@spe.org
Book Sales
Phone: 1.800.456.6863 or 1.972.952.9393
books@spe.org
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cmumba@spe.org
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Contact: Donna Neukum
Phone: 1.972.952.9454
dneukum@spe.org
Dues, Membership Information, Address
Changes, and Copyright Permission
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service@spe.org
Exhibit Space Sales
Contact: Joan Payne
Phone: 1.972.952.9356
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Insurance/Credit Card Programs
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JPT/JPT Online Advertising Sales
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The first Offshore Technology Conference Asia will be held in Kuala

Lumpur, Malaysia, in March 2014.
130
Technical Interest Groups

Contact: Any Santos
Phone: 1.972.952.9416
asantos@spe.org
JPT AUGUST 2012
ADVERTISERS IN THIS ISSUE

Archer
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Freidrich Leutert GmbH & Co. KG

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Polyguard Products
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Arnco Technology
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Fugro-Jason
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Baker Hughes Inc.

Cover 3
Greene Tweed & Co.

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Roxar Flow Measurement AS

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Cameron
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Halliburton
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Reactive Downhole Tools

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Clausthal University of
Technology
Page 22
HYTORC
Page 66
Schlumberger
Cover 2, Pages 3, 13, 21
Inpex
Page 27
SPE 2013 European Formation

Damage Conference
Page 102
CORTEC Fluid Control

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Diamond Industries
Page 6
Dragon Products, Ltd.
Pages 35, 80-81
Emerson - Micro Motion
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Environmental Defense Fund
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EXPRO
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FlexSteel Pipeline
Technologies, Inc.
Page 17
Flogistix
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FMC Technologies
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Forum Energy Technologies
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KAPPA
Cover 4
Key Energy Services
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Kudu Industries, Inc.
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SPE 2013 European HSE

Conference
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SPT Group
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StoneAge, Inc.
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Lonza
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McJunkin Red Man Corp.
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Mewbourne College of Earth &
EnergyUniversity of Oklahoma
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TAM International
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Tejas Research &
Engineering, LLC
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Tiandi Energy Inc.
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NOV Wilson
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Tomax AS
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Packers Plus
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Peak Well Systems
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Pietro Fiorentini USA
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Weatherford International Ltd.

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West Virginia University
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JPT AUGUST 2012
SPE EVENTS
WORKSHOPS
2425 October MedellinHydraulic

Fracturing
1012 September DallasLost Circulation

and Wellbore Strengthening
47 November PenangBrownfield
Redevelopment
2526 September Kuwait City

SPEInternational Professionals in
EnergyConference: Empowering
WomensLeadership
1012 September DohaWell and

Reservoir Management: Oil and Gas
FieldMonitoring
57 November CairoDeep Wells

Challenges 3
35 October LexingtonSPE Eastern

Regional Meeting
57 November DubaiUnconventional
Gas Fracturing: Leveraging Experience
from Success and Failure
810 October San AntonioSPE Annual

Technical Conference and Exhibition
1013 September BarcelonaPushing the

Envelope of Sand Control
1112 September Rio de Janeiro
SEG/SPE/SBGF Workshop: Global
Perspectives for Deepwater Presalt
Exploration and Production
1214 September BroomfieldSPE/SEG
Injection Induced Seismicity
1719 September IvernessCollision
Avoidance and Well Interceptions: Hits and
Misses
1820 September MumbaiDeepwater:
Indian PerspectiveGlobal Solutions
1820 September Nizhnevartovsk
Hydraulic Fracturing in Russia: Experience
and Future Perspectives
2326 September BaliIntelligent
Completions
2326 September XianHeavy Oil
2526 September Mexico CityPetroleum
Reserves and Resources EstimationPRMS
Applications Guidelines Document
30 September3 October PenangSPE
PRMS Reserves and Resources Definitions
Applicable to Both Unconventional and
Conventional Resources?
23 October Kuwait CityFractured
Reservoirs Development: Challenges
andOpportunities
24 October PragueShale as a
Reservoir: Leveraging Formation
Characterization, Well Placement, and
Unique Completions to Improve Multi-Stage
Stimulation
1417 October BangkokFlow Assurance:
The Healthy and Happy Field
1517 October MuscatAAPG/EAGE/SPE
Shale Gas Workshop
1518 October Bandar Seri Begawan
Control of Major Accident Hazards
2124 October CebuGeothermal
2224 October LondonSPE/EAGE Joint
WorkshopClosing the Loops: Geological
Modelling, Reservoir Simulation, and
Geophysical Measurements
57 November MuscatGlobal Integrated

Workshop Series: Produced Water Handling
57 November HoustonComplex
Reservoir Fluids
78 November SalvadorWell Integrity
Management: A Deepwater Approach
1214 November StresaSubsea
ProcessingHappening Now!
13 November Abu DhabiBridging the
Expectation Gap
1415 November Abu DhabiCCUS: Key
Elements to Successful Implementation in
the Middle East
1821 November Kota Kinabalu
Deepwater Well Intervention
2021 November DubaiFlow Assurance
and Production Chemistry: Finding
Integrated Solutions Across the Value Chain
2627 November BanffThermal Well
Integrity
1618 October MoscowRussian Oil and

Gas Exploration and Production Technical
Conference and Exhibition
2224 October PerthAsia Pacific Oil
and Gas Conference and Exhibition
30 October1 November Calgary
SPECanadian Unconventional
ResourcesConference
1114 November Abu DhabiAbu Dhabi
International Petroleum Conference and
Exhibition
2728 November ManamaArtificial Lift
FORUMS
26 September DubaiImproving the
Healthcare of Oil and Gas FieldsSense,
Compute, and Act
2328 September AlgarveThe
Implications of a $200/bbl World
2728 November ManamaDrilling HSE:

Striving for Excellence
30 September5 October Algarve

Designer Production Chemicals and Fluids
for the Oilfield
2729 November St Petersburg

Carbonates. New Frontiers
1419 October AlgarveNext Generation

Well Control
46 December Abu DhabiTurning

Brownfields Green: Digital Oilfield
Implementation Challenges in Mature Fields
49 November Santa FeNovel

Techniques for Reservoir Modeling
CONFERENCES
CALL FOR PAPERS
35 September IstanbulLarge Scale

Reservoir SimulationMathematical
Modelling
SPE Middle East Oil and Gas Show and

Conference Manama, Bahrain
Deadline: 2 September
1113 September PerthSPE/APPEA

International Conference on Health, Safety,
and Environment in Oil and Gas Exploration
and Production
North Africa Technical Conference and

Exhibition Cairo, Egypt
1920 September MidlandSPE LiquidsRich Basins Conference: New Technology

for Old Plays
2425 September CalgarySPE
Hydrocarbon Economics and Evaluation
Symposium
Offshore Technology Conference

Houston, Texas
SPE Middle East Unconventional Gas
Muscat, Oman
Find complete listings of upcoming SPE workshops, conferences, symposiums, and forums at www.spe.org.
136
JPT AUGUST 2012

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JOURNAL OF PETROLEUM TECHNOLOGY www.jptonline.

BOPs: Trust but Verify

20 GUEST EDITORIAL COLLABORATIONS CRITICAL ROLE

38 YOUNG TECHNOLOGY SHOWCASE

40 THE KEY WORDS FOR BLOWOUT PREVENTERS ARE

Cover: FMC Technologies Riserless Light

50 PRODUCTION METHOD FOR METHANE HYDRATE SEES

52 TALENT & TECHNOLOGY SOFT SKILLS COUNCIL:

Printed in US. Copyright 2012, Society of Petroleum Engineers.

Goals of the newly formed SPE Soft Skills Council.

120 ANNUAL CONFERENCE FOCUSES ON UNCONVENTIONAL

122 201213 SPE DISTINGUISHED LECTURER PROGRAM

An Official Publication of the Society of Petroleum Engineers.

57 Advances in Measuring Permeability Address Shortcomings of

62 Assessment of European Shale-Gas Play Takes Social Acceptance

67 Application of Novel Technologies Helps Unlock Deep Omani Gas

71 Deepwater Well Operations Could Benefit From Advances in Space

74 Separation Technology Shrinks to Fit Subsea Development in Deep

82 Designing Retrieval System for Subsea Sensors Accounts for

87 Autonomous Underwater Vehicles Ease Deepwater-Field Integrity

90 Health, Safety, Environment, and

91 Real-World Application of the Bow-Tie Method

106 Social-Performance Indicators and Maintaining Corporate Social

109 Lessons Learned Following MacondoSafety Enhancement

TECHNICAL PAPER DOWNLOADS

SPE PUBLICATIONS: SPE is not responsible for any

Georgeann Bilich, Publisher

EDITORIAL POLICY: SPE encourages open and objective

John Donnelly, Editor

COPYRIGHT AND USE: SPE grants permission to make

WORLD CRUDE OIL PRODUCTION+

JPT AUGUST 2012

WORLD CRUDE OIL PRICES (USD/bbl)

WORLD ROTARY RIG COUNT

WORLD OIL SUPPLY AND DEMAND 1

Figures do not include NGLs and oil from nonconventional sources.

JPT AUGUST 2012

the sands of the Murta formation over

Statoils Valemon development project

Oil production has started up from

Americas Petrogas commenced drilling

the La Hoya.x-1 (LHo.x-1) exploration well

JPT AUGUST 2012

provides blowout preventers (BOPs), BOP

A wholly owned US subsidiary of

TAM International opened its new

CONTRACTS AND TENDERS

Japans Osaka Gas will buy a 35%

SBM Offshore received a letter of

Weatherford International won

interim award (LOIA) from Shell for the

Rockwater Energy Solutions acquired

Norway-based Aker Solutions is

TGS-NOPEC Geophysical acquired

Mexican billionaire Carlos Slim bought

Expro opened a new operations base

Norways Fred Olsen Energy awarded

Chevron awarded a 5-year contract

Variable Bore Rams, an original

Bergen Group Dreggen was awarded

equipment manufacturer of BOP

a new contract with the engineering,

JPT AUGUST 2012

SPE BOARD OF DIRECTORS