World Oil & Gas Technology Impact Service

SUMMARY

Escalating Energy Requirements Threaten Oil Supply Security

The onus of finding new oil sources is mounting on energy companies across the world as demand for petroleum both oil and gas - is rapidly increasing in North America and Europe, the traditional 'high use' markets. Even emerging markets such as India, China, and a few other Asian states are experiencing a hike in demand for energy due to rapid industrialization, growing automobile ownership, and greater electricity consumption. Energy companies are staring down the barrel as replacement reserves are becoming harder to find outside Russia, the oil-rich Middle East countries, and West Asian nations affiliated to the Organization of Petroleum Exporting Countries (OPEC). This has led to a demand-driven boom for oil exploration and production services.

This Frost & Sullivan Technical Insights research highlights some of the significant technological advancements in oil and gas production by examining five key areas: exploration, drilling, offshore/deepwater technologies, enhanced oil recovery, and gas separation and processing.

New Discoveries Harder to Exploit

In recent years, petroleum companies have stepped up the pace of oil and gas exploration as oil wells are drying up at an alarming rate. They have extended the search for oil bed reserves to inhospitable locations such as the Arctic - under deep water beyond the continental shelf - that mandates the use of completely different techniques for successful petroleum extraction. This is increasing project costs in terms of dollars/barrel (bbl) of oil or 'mscfd' of gas extracted, compelling oil companies to push technology to its limits to reduce risks and ensure success.

Relatively low viscosity (API gravity) and high sulfur content of the new oil finds outside the Middle East have also entailed incorporation of compensating technology in oil wells for ensuring smooth flow by minimizing corrosion and other problems that might hamper field operations. "Companies are benefiting immensely from deploying sophisticated computing technologies capable of visualization and analysis of exploration survey results and oil reservoir management data," says the analyst.

Oil Companies Determined to Wring Out 'the Last Drop'

A large proportion of oil is left in the ground by the established drilling and reservoir management techniques. Oil companies cannot afford to forgo such reserves as they are pressured to maximize recovery. They are deploying several advanced exploration techniques such as 4D seismic surveys and other sensing means to aid efficacious management of extraction strategies from the old and new oil fields. Additionally, many enhanced oil recovery (EOR) techniques are being employed to improve extraction/oil flow. These include the traditional methods such as water or steam flooding along with newer systems under study with one solution based on biotechnology. Deviated or directional drilling is also being used extensively to increase the efficacy of drilling from the bottom of existing wells.

"With increasing difficulties in unearthing new oil beds, companies have started to explore alternate energy sources," comments the analyst. "The high average API gravity of crude oils has increased the economic appeal of exploring alternate, exotic reserves." The forthcoming decade is likely to witness synthesis of liquids from heavier and sour crude and natural gas besides petroleum extraction from unusual sources such as oil shale, tar sands, coal seams, and slushy methane hydrates.

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

Introduction; Highlights; and Key Findings

1. Introduction

2. Global Highlights and Key Findings

Scope and Methodology

1. Scope

2. Methodology

2 INTRODUCTION TO THE GLOBAL OIL AND GAS INDUSTRY

Introduction

1. The Oil & Gas Industry

2. Sources of Petroleum

Properties and Origin of Petroleum

1. Crude Oil's Characteristics

2. Origins of Oil and Gas

Basics of Petroleum Geology

1. Formations

2. Roots of Oil Exploration

Structures of the Oil and Gas Industry

1. Structure of the Oil Industry

2. Structure of the Gas Industry

Natural Gas Characteristics

1. Origins of Natural Gas

2. Where Natural Gas is Found

Cyclicality

1. Feast and Famine

2. Factors that Can Influence Investment

The Reserves Controversy and Funding Issues

1. The Reserves Controversy: Are We Running Out?

2. International Finance and Funding

3 GLOBAL EXPLORATION TECHNOLOGIES

Technology Analysis

1. Competing Established Technologies

2. New Technologies in Exploration--Introduction

3. Overview of Trends in Exploration Technologies; Technical Drivers and Challenges

Key Global Developments in Exploration

1. Non-linear Seismic Surveys

2. Temperature Anomaly Mapping

3. Canada- Magnetic Horizontal Gradient and Radiometric Surveys

4. 4D Seismic Surveys

5. Seismic Techniques for Deepwater Use

6. France- Better Geophones

7. MEMS as Seismic Sensors

8. Airborne and Satellite Surveys

9. Caspian Sea- West Africa- Gulf of Mexico- Surface Geochemical Surveys

10. Geomicrobial Surveys

11. Chemostratigraphy

12. Canada- Induced Polarization Surveys

13. Improved EM Surveys

14. Data Logging and Paleontological Techniques

15. Australia- Fault Detection

16. Smarter Interpretation

4 DIRECTIONAL DRILLING AND OTHER ENHANCED TECHNIQUES

Technology Analysis

1. Competing Established Technologies

2. New Technologies in Drilling- Technical Drivers and Challenges

Key Global Developments in Drilling

1. Reeled Drilling Systems

2. Directional Drilling

3. Drilling Deeper- Cheaper- Cleaner

4. Laser Drilling

5. Horizontal Drilling

6. US/Australian Collaboration Improved Drilling Muds

7. Controlling Drilling Fluid Losses

8. Smart Drilling

9. The Netherlands Drilling Smaller

10. Expandable Liners

11. Shell Malaysia Case Study Drilling Bigger

12. Canada- Dealing with Heavy Oils

13. Some DOE-Funded Programs

5 GLOBAL OFFSHORE AND DEEPWATER EXPLORATION AND PRODUCTION

Technology Analysis

1. Competing Established Technologies

2. New Technologies in Offshore and Deepwater Production; Technical Drivers and Challenges

Key Global Developments in Offshore & Deepwater Technologies

1. North Sea. Gulf of Mexico. West Africa. Tension Leg Platforms

2. Gulf of Mexico. Spar Platforms

3. Moving to Smaller Boreholes

4. International Collaboration: Doing without Platforms

5. Sand Control

6. Interventionless Well Completion

7. Dual Gradient Drilling

6 ENHANCED OIL RECOVERY

Technology Analysis

1. Competing Established Technologies

2. New Technologies in EOR: Introduction; Challenges

Key Developments in EOR

1. Texas A&M: Unraveling the Puzzle

2. Biopolymers at INEEL

3. Biotech Concepts for Heavy Oils

4. Downhole Vibration. Electric Heating

7 GAS PROCESSING

Technology Analysis

1. Competing Established Technologies

2. The Methane Hydrates Challenge

Key Developments in Gas Processing

1. Crystasulf

2. Norway. FramoPure

3. US/German Collaboration. GTI/Uhde Morphysorb

4. International Collaboration. Gas-Liquid Membrane Separation

5. Gas-Gas Membrane Separation

6. Twister Supersonic Separator

7. UK. Downhole Gas Compression

8. Upgrading Low-BTU Gas. Coal Bed Methane

8 GLOBAL MARKETPLACE ANALYSIS FOR OIL AND GAS TECHNOLOGY

Marketplace Analysis for Petroleum Exploration and Production

1. Introduction to the Markets and Applications for these Technologies

2. Market Analysis for Exploration Technologies

Primary Applications; Market Drivers; Challenges

1. Directional Drilling

2. Offshore and Deepwater Exploration and Production

3. Enhanced Oil Recovery

4. Gas Processing

Market Forecasts for Oil & Gas Technologies (2003-2008)

1. Market Forecasts for Oil & Gas Technologies (2003-2008)

2. Oil and Gas Exploration Forecasts

9 CONTACTS; GLOSSARY; BIBLIOGRAPHY

Contacts

1. Company Contacts

2. Glossary

3. Bibliography

10 TECHNICAL INSIGHTS' 2003 SCIENCE AND TECHNOLOGY AWARDS

Technology Leadership

1. Introduction

2. Award Recipient

Excellence in Technology

1. Introduction

2. Award Recipient