The future of shale

Master's Project (M.S.) University of Alaska Fairbanks, 2016This project examines the various drivers that led to the U.S. shale oil revolution in order to predict its place in the energy industry going forward and to analyze its effects on Alaska. The shale boom flooded the market with oil causing a dramatic decrease in crude oil prices in late 2014. With this price drop threatening to send Alaska into an economic recession, the future of shale should be of primary concern to all Alaskans as well as other entities that rely heavily on oil revenue. The primary driver leading to the shale revolution is technology. Advances in hydraulic fracturing, horizontal drilling, and 3D seismic mapping made producing shale oil and gas possible for the first time. New technologies like rotary steerable systems and measurements while drilling continue to make shale production more efficient, and technology will likely continue to improve. Infrastructure helps to explain why the shale revolution was mostly an American phenomenon. Many countries with shale formations have political infrastructure too unstable to risk shale investment. Capital infrastructure is a primary strength of the U.S. and also helps to explain why shale development didn't find its way up to Alaska despite having political stability. Financial infrastructure allowed oil companies to receive the funding necessary to quickly bring shale to the market. The final driver explored is crude oil prices. High oil prices helped spark the shale revolution, but with the recent price crash, there is uncertainty about its future. With production costs continually falling due to technology improvements and analysts predicting crude oil prices to stabilize above most project breakeven points, the future of shale looks bright.Introduction -- Shale & Alaska North Slope Crude Oil Prices -- Seeds of its own destruction? Technology -- Hydraulic Fracturing -- History of fracking -- Directional drilling -- History of drilling -- Benefits of directional drilling -- 3D seismic mapping -- Creating a shockwave -- Recording the data -- Interpreting the results -- The birth of a revolution -- Current/future developments -- Rotary steerable system -- Measurements while drilling -- Future developments. Infrastructure -- Political risk -- Financial markets -- Over investment -- Capital infrastructure. Crude prices -- The price crash -- Breakeven prices -- Future prices -- Alaska -- Conclusion -- Bibliography

Perspectives on Cyber Security for Offshore Oil and Gas Assets

In an ever-evolving technological industry, the oil and gas sector is already moving forward through the adaptation of Industry 4.0 and the adaptation of advanced cyber technologies through Oil and Gas 4.0. As IT/OT (information technology/operational technology) systems are evolving technologically, so are the cyber security threats faced by the offshore oil and gas assets. This paper aims to raise the awareness of cyber security threats and the organizational and technical measures that need to be adopted by the oil and gas industry for remote and complex assets in the upstream sector. A comprehensive literature review covering the areas of new IT/OT systems integration and cyber security risk analysis and management is presented. The results of a survey on the subject of cyber security for offshore oil and gas assets are also presented, and they provide valuable insight into the current industry culture and the perception of cyber security concepts. The importance of organizational culture, personnel training and involvement, as well as corporate engagement and support in the subject of cyber security is highlighte

Perspectives on Cyber Security for Offshore Oil and Gas Assets

In an ever-evolving technological industry, the oil and gas sector is already moving forward through the adaptation of Industry 4.0 and the adaptation of advanced cyber technologies through Oil and Gas 4.0. As IT/OT (information technology/operational technology) systems are evolving technologically, so are the cyber security threats faced by the offshore oil and gas assets. This paper aims to raise the awareness of cyber security threats and the organizational and technical measures that need to be adopted by the oil and gas industry for remote and complex assets in the upstream sector. A comprehensive literature review covering the areas of new IT/OT systems integration and cyber security risk analysis and management is presented. The results of a survey on the subject of cyber security for offshore oil and gas assets are also presented, and they provide valuable insight into the current industry culture and the perception of cyber security concepts. The importance of organizational culture, personnel training and involvement, as well as corporate engagement and support in the subject of cyber security is highlighted

MODELLING VIRTUAL ENVIRONMENT FOR ADVANCED NAVAL SIMULATION

This thesis proposes a new virtual simulation environment designed as element of an interoperable federation of simulator to support the investigation of complex scenarios over the Extended Maritime Framework (EMF). Extended Maritime Framework is six spaces environment (Underwater, Water surface, Ground, Air, Space, and Cyberspace) where parties involved in Joint Naval Operations act. The amount of unmanned vehicles involved in the simulation arise the importance of the Communication modelling, thus the relevance of Cyberspace. The research is applied to complex cases (one applied to deep waters and one to coast and littoral protection) as examples to validate this approach; these cases involve different kind of traditional assets (e.g. satellites, helicopters, ships, submarines, underwater sensor infrastructure, etc.) interact dynamically and collaborate with new autonomous systems (i.e. AUV, Gliders, USV and UAV). The use of virtual simulation is devoted to support validation of new concepts and investigation of collaborative engineering solutions by providing a virtual representation of the current situation; this approach support the creation of dynamic interoperable immersive framework that could support training for Man in the Loop, education and tactical decision introducing the Man on the Loop concepts. The research and development of the Autonomous Underwater Vehicles requires continuous testing so a time effective approach can result a very useful tool. In this context the simulation can be useful to better understand the behaviour of Unmanned Vehicles and to avoid useless experimentations and their costs finding problems before doing them. This research project proposes the creation of a virtual environment with the aim to see and understand a Joint Naval Scenario. The study will be focusing especially on the integration of Autonomous Systems with traditional assets; the proposed simulation deals especially with collaborative operation involving different types of Autonomous Underwater Vehicles (AUV), Unmanned Surface Vehicles (USV) and UAV (Unmanned Aerial Vehicle). The author develops an interoperable virtual simulation devoted to present the overall situation for supervision considering also the sensor capabilities, communications and mission effectiveness that results dependent of the different asset interaction over a complex heterogeneous network. The aim of this research is to develop a flexible virtual simulation solution as crucial element of an HLA federation able to address the complexity of Extended Maritime Framework (EMF). Indeed this new generation of marine interoperable simulation is a strategic advantage for investigating the problems related to the operational use of autonomous systems and to finding new ways to use them respect to different scenarios. The research deal with the creation of two scenarios, one related to military operations and another one on coastal and littoral protection where the virtual simulation propose the overall situation and allows to navigate into the virtual world considering the complex physics affecting movement, perception, interaction and communication. By this approach, it becomes evident the capability to identify, by experimental analysis within the virtual world, the new solutions in terms of engineering and technological configuration of the different systems and vehicles as well as new operational models and tactics to address the specific mission environment. The case of study is a maritime scenario with a representation of heterogeneous network frameworks that involves multiple vehicles both naval and aerial including AUVs, USVs, gliders, helicopter, ships, submarines, satellite, buoys and sensors. For the sake of clarity aerial communications will be represented divided from underwater ones. A connection point for the latter will be set on the keel line of surface vessels representing communication happening via acoustic modem. To represent limits in underwater communications, underwater signals have been considerably slowed down in order to have a more realistic comparison with aerial ones. A maximum communication distance is set, beyond which no communication can take place. To ensure interoperability the HLA Standard (IEEE 1516 evolved) is adopted to federate other simulators so to allow its extensibility for other case studies. Two different scenarios are modelled in 3D visualization: Open Water and Port Protection. The first one aims to simulate interactions between traditional assets in Extended Maritime Framework (EMF) such as satellite, navy ships, submarines, NATO Research Vessels (NRVs), helicopters, with new generation unmanned assets as AUV, Gliders, UAV, USV and the mutual advantage the subjects involved in the scenario can have; in other word, the increase in persistence, interoperability and efficacy. The second scenario models the behaviour of unmanned assets, an AUV and an USV, patrolling a harbour to find possible threats. This aims to develop an algorithm to lead patrolling path toward an optimum, guaranteeing a high probability of success in the safest way reducing human involvement in the scenario. End users of the simulation face a graphical 3D representation of the scenario where assets would be represented. He can moves in the scenario through a Free Camera in Graphic User Interface (GUI) configured to entitle users to move around the scene and observe the 3D sea scenario. In this way, players are able to move freely in the synthetic environment in order to choose the best perspective of the scene. The work is intended to provide a valid tool to evaluate the defencelessness of on-shore and offshore critical infrastructures that could includes the use of new technologies to take care of security best and preserve themselves against disasters both on economical and environmental ones

Implementation of Risk-Based Inspection on Offshore Facilities

The objective of the project is to study and evaluate the implementation of Risk-Based Inspection (RBI) on offshore facilities. RBI was successfully implemented on onshore refinery and petrochemical plants and it is gaining an acceptance by offshore facilities. Study on the implementation on offshore facilities is required to assess the success of the program and to determine its benefits to the facilities operation, equipments’ integrity and safety, cost control, and overall risk management. The scopes of the study are as follows: (a) Study on Risk Based Inspection concepts and approach for offshore implementation; (b) Familiarization of Offshore Facilities; (c) Analyze and understand RBI implementation on DUYONG Central Processing Platform and BARONIA Drilling Platform-J; (d) Conduct RBI analysis based on API standards and determine the success of RBI on offshore facilities The methodologies used are: (a) Literature review on understanding RBI methodologies for implementation on offshore facilities, and familiarization to static equipments that are subjected for RBI; (b) Conducted case studies on Duyong CPP and Baronia DP-J which involved data gathering, study on methodology, and analysis on results of implementation (c) Conducted RBI analysis on both facilities according to API standard and further evaluate the success of implementation. The methodologies and results of this RBI analysis were compared with those obtained from the implementation by PETRONAS Carigali. The study concluded that RBI was properly implemented on offshore facilities by PCSB. This was clearly supported by the similar results obtained by the RBI analysis with that obtained from the RBI Implementation by PETRONAS Carigali Sdn.Bhd

Introduction to Permanent Plug and Abandonment of Wells

This open access book offers a timely guide to challenges and current practices to permanently plug and abandon hydrocarbon wells. With a focus on offshore North Sea, it analyzes the process of plug and abandonment of hydrocarbon wells through the establishment of permanent well barriers. It provides the reader with extensive knowledge on the type of barriers, their functioning and verification. It then discusses plug and abandonment methodologies, analyzing different types of permanent plugging materials. Last, it describes some tests for verifying the integrity and functionality of installed permanent barriers. The book offers a comprehensive reference guide to well plugging and abandonment (P&A) and well integrity testing. The book also presents new technologies that have been proposed to be used in plugging and abandoning of wells, which might be game-changing technologies, but they are still in laboratory or testing level. Given its scope, it addresses students and researchers in both academia and industry. It also provides information for engineers who work in petroleum industry and should be familiarized with P&A of hydrocarbon wells to reduce the time of P&A by considering it during well planning and construction

Propuestas para la mejora de la seguridad en las operaciones especiales con anclas para la fijación de estructuras offshore

The aim of this Final Degree Project is to suggest improvements in terms of security and positioning operations in the offshore space, specifically offshore structures that are fixed to the seabed by spread anchor lines. In order to provide these improvements, this project will offer a step by step description of the operation, focusing on oil rigs, especially the semisubmersible type. These operations are held by specialized vessels named Anchor Handling Tug Supply (AHTS), fitted with specific equipment for such activities and furthermore with the Dynamic Positioning System (DPS), whose classes and principles are also explained in further detail. In order to describe the dynamic positioning system, the AHTS vessel Havila Neptune’s, ship particulars, drawings and characteristics will be presented in detail. As these activities are carried out using large mooring lines in deep waters and deploying heavy equipment, the risk in these operations are considerable. These are carried out even in rough sea states and with multiple external loads and forces. To finish, security improvement Proposals in Anchor Handling operations will be offered, so as to prevent risks, both human and material.Grado en Ingeniería Náutica y Transporte Marítim

Regulatory Blowout: How Regulatory Failures Made the BP Disaster Possible, and How the System Can Be Fixed to Avoid a Recurrence

The BP oil spill in the Gulf of Mexico is destined to take its place as one of the greatest environmental disasters in the history of the United States, or for that matter, of the entire planet. Like so many other disasters on that list, it was entirely preventable. BP must shoulder its share of the blame, of course. Similarly, the Minerals Management Service (MMS) – since reorganized and rebranded – has come under much deserved criticism for its failure to rein in BP’s avaricious approach to drilling even where it was unable to respond to a worst-case scenario in a responsible and timely fashion. But the problems run much deeper than a single risk-taking company and a single dysfunctional regulatory agency. This report sketches out widespread regulatory failure, touching several agencies of the federal government and affecting several critical environmental statutes. Prepared by Member Scholars of the Center for Progressive Reform (CPR), it has two goals: (1) to identify how and why the regulatory system failed to protect the public and environment and prevent the BP disaster, and (2) to recommend the priority reforms that are essential to correct these regulatory deficiencies. The report begins by laying out the shortcomings in the primary statute under which deepwater oil drilling is regulated – the Outer Continental Shelf Lands Act (OCSLA) – and outlines key reforms needed to provide the authority necessary to protect the public interest. It then turns to systemic problems within the agency charged with regulation of deepwater oil drilling under the OCSLA – the Mineral Management Service (MMS), renamed the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) in the wake of the disaster. These include problems of agency capture and inadequate funding. The third topic addressed in the report is the role of the National Environmental Policy Act (NEPA) – how and why this landmark statute was disabled from performing its critical role in the case of the BP well, and what regulatory changes can ensure that it functions effectively in the future. The report next details the problems that surrounded the implementation and enforcement of the Endangered Species Act (ESA) as it applied to oil drilling and recommends several key reforms. The report then discusses a systemic problem that is a theme in each prior section and that specific statutory reforms cannot fully remedy: obstacles to making sound regulatory decisions in the face of uncertain, low probability risks of potentially catastrophic or irreversible harm. This section highlights a common sense solution: adoption of a precautionary stance. A precautionary approach would replace the current widely-adopted presumption that regulation must await a high – and often unattainable – degree of certainty, even when the potential costs are irreversible or catastrophic. In the last sections of the report, we step back to look at the regulatory system from a broader perspective. We consider first how the regulatory system and its failures in this case were caused in part by the absence of coherent policies on energy and climate change. Our current policy provides vast incentives for risky oil and gas development like deepwater drilling and few for low-carbon alternative energy sources. In the wake of yet another painful lesson on the cost of our current incoherent approach, it is time to focus political attention on the difficult but necessary task of debating and adopting a coherent and sound energy policy. In the final section, we step back geographically to suggest why another lesson of this disaster is that the United States should undertake to learn more from the experience abroad, offering the example of the North Sea. Had we been paying closer attention, the investigations and reforms in the wake of the infamous Piper Alpha spill or the Bravo platform blowout might have offered insights to help us avoid this disaster