"Global Energy Trends"
Date: Monday, September 11, 2000
Place: Westchase Hilton, 9999 Westheimer
Time: Social 5:30 p.m., Dinner 6:30 p.m.
Price: Click here.
The business world is evolving into what is being called "The New Economy" which is neither a fad nor a convenient way to explain the rise in the stock market. It represents, a radical change in the way that we will all do business in the future and it reflects many features beyond just technology. The "New Economy" is real and is characterised by five distinct phenomena: 1) Megatrends such as consolidation, globalization and convergence are occurring within and across industries, 2) Widespread integration of new technologies such as the Internet, ASPs and enhanced telecommunications, 3) A shifting of power from suppliers of products and services back to consumers, 4) An increased emphasis and premium placed on intangibles such as relationships, knowledge and leadership and 5) The differing mindset of the X generation entering the workforce and the resulting war for talent that places considerable importance on the softer side of business. The dynamics are changing the general nature of the way people, work, live and do business. These changes are heavily influencing older traditional industries such as the oil and gas industry. The companies that accept these changes and actively position themselves to benefit from these immense opportunities will be greatly advantaged to those companies who remain passive observers.
The global exploration and production (E&P) market remains immense with over a dozen worldwide majors and nearly fifty global independents participating in an industry that is now over a hundred years old. These sixty players employ over one million people, carry over $1 trillion of book value assets and deploy over $100 billion in capital per annum. These size metrics do not even include the upstream service companies or national oil companies (NOCs) that also have a major impact on the industry. Consider that the 60 largest, publicly traded E&P companies have a combined market capitalization of $1.2 trillion. This combined market value is larger than the gross domestic product of all but six of the worldís most prosperous nations. In addition to its massive size, the industry is also well positioned to create value as a result of other factors. Commodity prices remain strong for both crude and gas with increasing demand sparked by a robust world economy. Furthermore, other metrics of performance such as find and develop cost, operating cost, reserve replacement rates, and margins all indicate that the industry should be undergoing a period of protracted value creation for all of its stakeholders.
Despite its size and present business environment conducive to high value creation, not all E&P companies have been stellar performers from a shareholder value perspective. This presentation attempts to address: Why? And, What can be done? Based on a 10,000 company multi-industry research endeavor, the primary building blocks to value creation are identified. The fundamental elements are adapted into four primary conclusions relating to value creation in the ìNew Economyî. They are: 1) Intangible assets are the engines of wealth, 2) A companyís asset portfolio more than its industry determines success, 3) Companies with fewer physical assets generate higher returns with less risk and 4) Most business leaders agree the business environment is changing drastically but do not act accordingly. These fundamentals are then evaluated for acceptance and levels of integration within the E&P industry. It is through this ìValue Dynamicî perspective that the process to E&P value creation in the New Economy is developed.
Biographical Sketch:
Richard O. Berard, Jr. is a Manager in Arthur Andersen's Oil and Gas Business Consulting practice specializing in the oil and gas exploration and production industry. Rich has been providing consulting services to domestic and international oil and gas companies for the past six years, the last three while at Arthur Andersen. Rich's oil and gas expertise includes significant experience in value creation, performance measurement, market analysis, organizational design and cost assessment. Rich manages the firm's annual exploration and production benchmarking study which includes both qualitative and quantitative analysis of cost and performance measurement. Rich holds BBA in Economics and Political Science from the University of Miami and a MS in Economics with honors from Bentley College.
"Subsidence"
Date: Thursday, September 14, 2000
Place: HESS Bldg.5430 Westheimer
Time: Social 5:30 p.m., Dinner 6:30 p.m.
Price: Click here.
The Harris Galveston Coastal Subsidence District was created in 1975 to halt land surface subsidence in the greater Houston area, caused by the over reliance on groundwater. It is estimated that over 10 feet of subsidence has occurred in the eastern part of Harris County. The District has been successful in its regulation of groundwater pumpage in Galveston County and central and southeast Harris County. The challenges of the past were substantial and the results beneficial to everyone. The greatest challenge now rests in applying this methodology in north and west Harris County. The District adopted a new plan in 1999 that changed the regulatory approach to accomplish the goals in a more efficient manner while giving the most flexibility to solve the over reliance usage problem.
Biographical Sketch:
Tom Michel is assistant to the general manager of the Harris Galveston Coastal Subsidence District. He has worked for the district for 12 years in varying roles. The past six years were spent on administrative and technical projects, including the development of the districts regulatory plan. He received his Bachelors in computer information systems from the University of Houston at Clear Lake and Masters in public administration at the same university.
Place: J.J. Pickle Research Campus Commons, Austin, Tx
Registration and cost information: Click here.
Contact Patsy Waters 512-463-7955, email.
The Texas Water Monitoring Council is proud to announce the 2000 Texas Water Monitoring Congress (TWMC). It will be September 18-20, 2000 at the J.J. Pickle Research Campus Commons.
This meeting is to provide a forum for effective communication, cooperation, and collaboration among individuals and organizations involved in water monitoring in Texas. Professionals from local, state, and federal agencies, universities, and the private sector engaged in water resource activities are encouraged to attend. Additionally, anyone involved or interested in water monitoring activities in Texas is also encouraged to attend.
The intended outcome of the TWMC will be to facilitate, standardize, and provide guidance to local, state, and federal data collection programs, aid the development of systematic collection and dissemination of hydrologic data, and arrive at consensus on approach and response to future water resource data needs of the state.
The Congress will have focus groups to make recommendations for improving water monitoring activities in Texas. The 1998 recommendations within the proceedings of the 1998 Session of the Texas Water Monitoring Congress at http://www.texaswaterinfo.net/TWMC/98prcdgs.pdf The proceedings from the 2000 Session TWMC will be provided to each participant and to key decision makers.
From Spindletop to Y2K: Renowned oilpatch legend shares lifetime of experience
Date: Wednesday, September 13, 2000
Place: H.E.S.S. Conference Center, 5430 Westheimer Rd. (refer to map at www.hessclub.com ), just west of the Galleria
Time: Social begins at 6:15 pm, Dinner served at 7:00 pm
Price: Click here.
Note: HGS applications will be available at the door - new HGS members signed up at the dinner meeting will receive admission for $20.
NeoGeos is pleased to present its first-ever dinner meeting and discussion featuring legendary oilman and Houstonian, Michel T. Halbouty. Mr. Halbouty will discuss his life experiences, his long and exciting career in the oilfield, the challenges young geoscientists face in today's industry, and his advice for this new generation of explorationists. There will also be time for a question and answer session after Mr. Halbouty addresses the NeoGeos.
Biographical Sketch:
Michel T. Halbouty is an internationally renowned earth scientist and engineer whose career and accomplishments in the fields of geology and petroleum engineering have earned him the recognition as one of the world's outstanding geoscientists.
He started working as a water boy for the drillers in his hometown of Beaumont, TX at the age of five. Michel went on to Texas A&M for a degree in geology - by borrowing his tuition money from the president of the college. Michel received B.S. and M.S. degrees from Texas A&M in both geology and petroleum engineering. He also earned the Professional Degree in Geological Engineering from Texas A&M. The Montana College of Mineral Science and Technology conferred to Halbouty the Degree of Doctor of Engineering. In May 1990, he was awarded the degree of Doctor of Geoscience by the USSR Academy of Sciences for his many contributions in and to the science of geology, the only such honor bestowed to a scientist outside the Soviet Union. Halbouty was presented with an Honorary Professorship in Geology in May 1993 from the University of Nanjing, People's Republic of China. This honor recognized his many years of lecturing to students, academicians, and geoscientists of government agencies throughout the People's Republic of China, as well as his significant contributions to the advancement of petroleum geology in China.
Halbouty has received several awards, honors, and special recognition from both national and international scientific and engineering societies. In addition, he has served in official capacities in many of those organizations. In particular, he was President of the American Association of Petroleum Geologists, the world's largest organization of earth scientists.
Halbouty has received the highest awards bestowed by AAPG and has also received the highest honors conveyed by the American Institute of Mining, Metallurgical and Petroleum Engineers. He is the only earth scientist-engineer to have achieved the distinction of being singularly honored by these two great scientific and professional societies.
Halbouty has made speeches and lectures to organizations, government ministries and agencies, college audiences, and lay groups all over the United States and the world. He has served as a Distinguished Lecturer for both SPE and AAPG. He has also written and published over 300 papers and several books. Halbouty has also edited or has been Special Editor of several scientific publications.
"Petroleum Geology of the Western Ust-Yurt Basin Republic of Kazakhstan."
Date: Monday September 18, 2000
Place: Westchase Hilton, 9999 Westheimer
Time: 5:30 Social 6:30 Dinner
Posters: Click here .
Vendors: Click here .
Abstract:
Introduction
The Ust-Yurt Basin occupies a triangular shaped block tucked against the southeastern margin of the large Pre-Caspian Basin in Western Kazakhstan. Several giant fields are currently producing in the basin but it remains relatively unexplored despite developed pipeline infrastructure and active foreign ventures. The western Ust-Yurt Basin lies adjacent to, and partially within the North Caspian Sea. The North Caspian is currently one of the world’s most exciting new oil provinces, where billions of barrels have apparently been discovered at Kashagan East.
Infrastructure
Existing pipeline infrastructure was built in the 1970’s to transport crude from giant fields on the Buzachi Arch and South Mangyshlak. This existing pipeline system is insufficient to handle the production of Tengiz Field and anticipated discoveries in the Caspian. The Caspian Pipeline Consortium (CPC), is building a pipeline that will move Western Kazakhstan oil to export on the Black Sea.
Structural Setting
The Ust-Yurt block is adjacent to the larger Pre-Caspian Basin. It has been subjected to numerous collisions and stresses throughout the late Paleozoic, Mesozoic and Tertiary as continental blocks accreted to form modern Asia. The Buzachi Arch, a broad uplift in the western Ust-Yurt Basin, contains the bulk of the basin’s known petroleum reserves. The Ust-Yurt basin deepens to the east, and is largely unexplored.
Stratigraphy
The known stratigraphic section consists of Triassic clastics, which lie unconformably below a transgressive Jurassic section. Jurassic fluvial, deltaic and marginal marine deposits are the important reservoirs throughout the area. The Uppermost Jurassic/Lower Cretaceous carbonates and evaporites form a regional seal for petroleum accumulations. The Cretaceous is predominantly marine and marginal marine sandstones, shales, and chalks.
Source Rocks
Little is known of source rocks in the Ust-Yurt Basin. Geochemically, several important oil families are recognized including a carbonate source rock kitchen within the Pre-Caspian Basin, and a clastic source rock kitchen in the North Ust Yurt Trough.
Trap Styles
Fields on the Buzachi Arch and the North Caspian Fold and Thrust Belt are typically structural, with multiple sandstone pays within the Jurassic. Some fields exhibit a high-degree of faulting, while low relief drape structures are typically unfaulted or have minimal faulting. Kerr-McGee’s Arman Field is an example of a wrench fault updip seal for multiple Jurassic pays.
Prospectivity
The North Caspian and shallow waters in Mertvyi Kultuk are poorly explored due to difficulty and high cost of access and stringent environmental regulations. The first well drilled in the North Caspian Sea was Ostrovnaya #1, drilled in August 1998 by Oryx Energy. This well was drilled on an artificial island, constructed at high cost and resulted in a sub-commercial (30-50MMBO) accumulation. Even more expensive is Kashagan East where drilling costs are expected to exceed several hundred million dollars. The largest prospective feature we have mapped is a large, low relief structure in the North Ust-Yurt Trough named Salkenskaya, which covers more than 30,000 acres and has more than 100 meters of vertical closure. Drilling is anticipated in 2001.
Speaker Biography
Kurt Reisser is an Exploration Geologist in the International Exploration Department of Kerr-McGee Oil and Gas Corporation in Houston, Texas. He has worked for Kerr-McGee since 1999 when it merged with Oryx Energy Company. Kurt began his career with Exxon Company USA in New Orleans in 1976 as a production geologist. He joined Getty Oil Company in 1979 in Denver Colorado as an Exploration Geologist working Wyoming and Colorado.
In 1981 he joined Sun Exploration Company in Denver and concentrated on western Wyoming. He is credited for the discovery of Lucky Ditch Field in 1985 on the South Moxa Arch for which the Rocky Mountain Association of Geologists awarded him their Explorer of the Year award in 1988.
In 1986 he was transferred to Dallas as Geological Manager for various western US districts. In 1989 Sun Exploration became Oryx Energy Company. He joined their New Ventures group in 1991 and began actively working on Kazakhstan and Former Soviet Union projects. He moved to Houston last year after the merger with Kerr-McGee and now works Yemen and China in addition to Kazakhstan.
He has a B.A. degree in geology from the University of Colorado, Boulder and a M.S. degree in Geology from the University of Nebraska, Lincoln. He is an AAPG Certified Petroleum Geologist and a member of the Houston Geological Society.
"Sedimentology, stratigraphy, and age of the Lower and Middle Productive Series - Inferred from outcrops on the Apsheron Peninsula, Azerbaijan." by Dag Nummendal, H. Edward Clifton, Vitor S. Abreu, Zhutu Bati, Tom Demchuk, Akif Narimanov, Donald S. van Nieuwenhuise, A. Ortenzi, G.W. Riley, Jeffrey A. Stein, Alaattin Sayili, V. Eileen Williams, and Roger J. Witmer.
Poster #2
"Miocene/Quaternary sequence stratigraphy of the Caspian Sea region: interplay of deltaic systems and climatic control on nonmarine depositional sequences" by Vitor S. Abreu, Dag Nummedal, Paul Ware, Roger Witmer and Jersy Trybek, UNOCAL
Poster #3
"Significance of microbial processes in gases of the South Caspian basin". by B. J. Katz, A. Narimanov, and R. Huseinzadeh.
ABSTRACT:
The South Caspian basin has been a major petroleum-producing province for more than century. While the basin's oil has been the focus of a number of studies the region's gas has been largely understudied. This study examines 31 gas samples from 14 fields with the primary purposes of determining their mode(s) of formation and the role that microbial activity has had in their alteration.
The basin's natural gas accumulations display significant differences in both molecular and isotopic composition. Gas wetness ranges from less than 1% at Apsheron to greater than 12% at Guneshli. Methane carbon isotopic composition ranges from -57 to -37?. The stable carbon isotopic composition of the wet gas (C2+) components also displays a very broad range (e.g., C2 ranges from -37 to -20?; C3 ranges from -31 to -10?; and nC4 ranges from -30 to -11?).
No strong depth-related trends were observed in any of the geochemical attributes. The absence of a trend implies that the gases have not been generated in situ but have migrated vertically. Mixing is also suggested by the differences in the calculated thermal maturity levels between the C2+ components and methane. In some accumulations (e.g., Karabagly) as much as 55% of the methane may have a biogenic origin. These data also indicate that among the gas samples studied those from Bakhar appear to be the most mature, with thermal maturity values consistent with the "condensate-window".
In several fields, including Guneshli and Neftchala, the wet gas components display evidence for microbial alteration. This is largely manifested in anomalously heavy isotopic compositions of propane, n-butane, and n-pentane.
Poster #4
"SATELLITE MAPPING HELPS EXPLORATION OF THE CASPIAN REGION ON- AND OFFSHORE." by Alan Williams, Mark Broadley and Nigel Press, NPA Group, Edenbridge, UK This poster illustrates how onshore satellite imagery has been used to build a clearer picture of the regional structural setting of the basins in the Caspian area, as well as for assessing environmental conditions and change patterns. Offshore, satellite radar has revealed prolific seepage patterns as well as pollution, especially in the southern Caspian, and has shown that source kitchens extend outside the areas of known production. Temporally repeating natural seepage points have succesfully been sampled by boat.
Dean Gaddy, Oil & Gas Journal's Sr. Editor-Drilling and Special Products and Alan Petzit Exploration Editor will attend to exhibit various products.
Reprints of the excellent Montage on the Caspian that appeared in the August 21 OGJ will be available at a special one-time reduced price at the meeting.
Petroleum Software Technologies (PST) provides unique, fast, accurate, and user-friendly wireline log processing software to more than 65 oil and gas organizations. PST specializes in high-speed inversion modeling for induction, MWD, array induction, and even lateral and normal logs (including the difficult Russian and Chinese BKZ logs) and has recently released unique software that models the SP log.
Inversion modeling removes the negative environmental effects on the resistivity and SP logs which results in more accurate values for Rt, Rxo, and "pseudo static" SP, at a much finer vertical resolution (less than 2 feet for most logs). PST has also developed a user-friendly neural network product which uses this processed information along with other available log and core information to generate synthetic logs and core properties quickly and accurately.
The display will highlight the successful use of these new technologies focusing on Russian examples to follow the theme of the evening.
FREE Log Calculator Software will be distributed to exhibit visitors.
"Sequence Stratigraphy and 3D Modeling of a Pennsylvanian Distally Steepened Ramp Reservoir: Canyon and Cisco Formations, South Dagger Draw Field, New Mexico, USA"
Date: Thursday, September 21, 2000
Place: Westchase Hilton, 9999 Westheimer
Time: Social 5:30 p.m., Dinner 6:30 p.m.
Price: Click here.
Three-dimensional geologic models are often described as "products" of the reservoir characterization process, when in fact they might better be considered "tools" for reservoir management. For a 3D geologic model to be used as a reservoir management tool, it must be a reasonably accurate representation of the rock and fluid system in the earth volume of interest. Integrated 3D geologic modeling is a highly iterative, hierarchical process. Each step of the workflow builds and is dependent upon prior steps. Each data type used in reservoir characterization results from a unique experiment measuring different volumes of rock. Sophisticated, calculation-intensive algorithms, designed to run on powerful hardware systems, are now available to help integrate these different data types. However, hardware and software are only tools, and effective 3D reservoir modeling must involve an iterative process of geological interpretation, petrophysical analysis, seismic processing and inversion, and the application of mathematical algorithms. The iterative reservoir characterization process involves several significant challenges, including defining and adhering to a reasonable workflow, handling multiple data types to fill the interwell volume with petrophysical data that describe reservoir behavior accurately, and testing the 3D model interpretation.
South Dagger Draw field is presented as a case study to demonstrate our reservoir characterization workflow. South Dagger Draw is a Pennsylvanian reservoir located in southeast New Mexico. It produces from vuggy porosity formed along fractures and dominantly in algal mound complexes located at the ramp margin. A detailed sequence-stratigraphic interpretation of logs, cores, predicted facies, and 3D acoustic impedance data, guided by a depositional model derived from description of cores and outcrops, defined a series of complex sigmoid-oblique prograding clinoforms. This stratigraphic framework is the input for 3D geologic modeling.
Seismic and log data were integrated into a 3D geologic model using a new approach based on rock physics rather than geostatistics. The approach recognizes that acoustic impedance (AI) values, derived from accurate, iterative inversions of 3D seismic data, represent the only true measurements of the complete earth volume of interest. Therefore, instead of treating the AI measurements as "soft" data and conditioning the model results to the limited earth sample measured by well logs, the AI data are treated as valid, and the log data are conditioned to the seismic using nonlinear rock and fluid physical equations. The result is a 3D geologic model that acknowledges the error and scale differences inherent in the subsurface data (core description, core analysis, wireline logs, and 3D seismic) and attempts to integrate the data on the basis of physical principles, and provides a forward modeling approach to test the result.
Biographical Sketch:
Currently, Scott Tinker is director at the Bureau of Economic Geology, The University of Texas at Austin, and state geologist of Texas. Previously he held the position of advanced senior Geologist at Marathon Oil Petroleum Technology Center in Littleton, Colorado. He has over 18 years of industry experience with Marathon, UPR, and Robert M. Sneider Exploration. His expertise ranges from designing, managing, and implementing multidisciplinary reservoir characterization studies, carbonate sequence stratigraphy, and 3D reservoir modeling. Recent achievements include SEPM award for Best Paper published in the Journal of Sedimentary Research, J.C. "Cam" Sproule Memorial Award for Best Paper published in AAPG by an author 35 years or younger, Marathon Achievement of Company Excellence Awards, and AAPG Distinguished Lecturer.
Scott graduated with a Ph.D. from the University of Colorado, and M.S. from the University of Michigan, and a B.Sc. from T
"An Integrated Study of the Liuhua 11-1 Field Using an Ultra-High Resolution 3D Seismic Dataset: South China Sea"
Date: Wednesday, September 27, 2000
Place: Hyatt Regency Downtown
Time: Social 11:15 a.m., Lunch 11:45 a.m.
Price: Click here.
Email reservation: Click here to make an email reservation. Please make or cancel reservations by Sept 26. Include a name and a contact telephone number for every person for whom you are reserving or canceling a place. HGS members are requested to provide their HGS member number.
Note: If you do not receive a reply email confirmation from the HGS office, please call the HGS office (713) 785-6402 to verify your email reservation was received.
Introduction
The Liuhua 11-1 Field, located 130 miles southeast of Hong Kong in 1000 feet of water, is a vuggy carbonate reservoir at shallow depths (3850 feet subsea), producing 16-22 degree API oil under a very strong bottom-water drive. The field was discovered in 1987 and is currently being developed with 25 long-radius horizontal wells drilled from a floating production system. Project success is dependent on limiting water production with the heavy oil, which in turn makes an accurate reservoir description critically important.
To better define reservoir heterogeneity, a 3D seismic survey of the Liuhua Field was acquired in July 1997. A very high resolution dataset (200+ Hz) was obtained and has been used in an integrated field study to evaluate the future exploitation potential of the 1.2 billion barrels of oil in place in the reservoir.
The seismic data were converted to acoustic impedance using geologically-constrained inversion techniques and converted to porosity based on a linear impedance vs. porosity relationship. Drilling data were integrated with the seismic data to create detailed maps of reservoir structure and stratigraphy. Petrophysical data and modeling coupled with the seismic inversion were used to create a spatial distribution of porosity, permeability, and saturation. Faults, fractures, and oilfield karst collapse phenomena in the reservoir were analyzed using coherence technology. Complex attribute analyses added an additional understanding of rock matrix continuity. This information was used to build reservoir characterization and simulation models that were tuned and validated using historical performance to predict future reservoir performance.
Conclusions
Much of the prior geoscience understanding of the Liuhua reservoir was revised significantly as a result of this work. The structural location of the wellbore is a critical factor along with the internal faulting, fracturing and solution collapse, the porosity and permeability of the flow units, and the integrity of the tight zones. A significant finding, demonstrated by the porosity model, is the heterogeneity and lack of continuity in the tight layers as called for in the original pre development plan. The Liuhua reservoir is riddled with porosity soft spots and suspected fracture swarms in the baffle zones that were originally required to be spatially competent as tight protection from early aquifer influx. Solution collapse and gas chimneys are also critical factors affecting reservoir hydraulics, and the associated vertical water movement was simulated successfully using attribute analyses during flow modeling around the horizontal wellbores.
Biographical Sketch:
Chip Story holds a B.S. degree in geological engineering from the South Dakota School of Mines and an M.S. degree in geophysics from the Colorado School of Mines. His career began with Amoco in 1977 with early efforts in the Wyoming thrust belt. Subsequent projects in Denver included work in the Paradox and Williston basins. Project assignments in New Orleans and Houston starting in 1983 involved the Gulf of Mexico Pleistocene, onshore and offshore Norphlet trend, the Tuscaloosa trend, the Hackberry trend, the Santos basin offshore Brazil, and the Liuhua field offshore China.
Chip is currently working as a consulting geophysicist on Norphlet/ Smackover projects in the Mississippi Interior Salt basin and on the Tuscaloosa formation in the Tuscaloosa Trend for CAEX Services of Houston. His professional interests include 3D seismic interpretation, visualization, and reservoir characterization technology. Chip holds active membership in the Geophysical Society of Houston and the Society of Exploration Geophysicists.