Comments: Oilfield Services Face Low and Slow Recovery

2020 ◽  
Vol 72 (12) ◽  
pp. 10-10
Author(s):  
Pam Boschee
Keyword(s):  
Capital Investment ◽  
Technical Committee ◽  
Service Companies ◽  
Drilling Rig ◽  
Well Completion ◽  
Market Responses ◽  
West Texas ◽  
Fuel Demand ◽  
The Us ◽  
Capital Spending

OPEC’s easing of production cuts originally planned for January may be delayed until mid-2021 because of the global increases in COVID-19 cases occurring in November. As restrictions are renewed, extended, or newly instated, fuel demand is expected to decrease. Following a Joint Technical Committee (JTC) meeting on 16 November, OPEC Secretary General Mohammed Sanusi Barkindo underscored the need to remain “vigilant and diligent” in the months ahead. The JTC recommended that supply increases be postponed from 3 to 6 months. The OPEC ministers plan to hold an online meeting on 30 November to decide on production levels among the 13 member countries. By the time you read this in early December, their decisions - and the market responses to them - will be evident. Approximately 7.7 million B/D, or about 8% of global production, are currently tamped down. The recent encouraging announcements of two vaccines’ effectiveness in early clinical trials buoyed oil prices, which are hovering around $40/bbl (West Texas Intermediate closed at $41.38 on 16 November). The past 8 months brought with them upheavals in operators’ and service companies’ short-term reactions to market conditions based on their financial resiliency, and as the pandemic persists, the fallout sputters on as layoffs, bankruptcy filings, mergers and acquisitions, and new collaborative business deals arise almost daily. One sector thought to have bottomed out globally is oilfield services (OFS) and drilling, according to Moody’s Investors Service’s outlook published 13 November. Improvement in earnings is expected to be slow in 2021 as a result of the limited growth forecast in development activities and capital investment. Low and slow growth may be the sector’s motto for some time. The record lows in the third quarter of this year in the drilling rig count and well completion/servicing activity hit the OFS hard after operators reined in capital spending. Some recovery in the US has occurred since August when the rig count tanked at 244. By late October, it neared 300. The international rig count drop has slowed and reached fewer than 700 by later October. Moody’s reported the decrease will continue, but at a slower rate, through the end of this year.

OPEC deal would encourage US shale producer rally

2016 ◽  
Keyword(s):  
Gulf Of Mexico ◽  
Oil Prices ◽  
Oil Price ◽  
Eagle Ford Shale ◽  
Eagle Ford ◽  
Content Type ◽  
Service Companies ◽  
West Texas ◽  
The Us ◽  
Shale Recovery

Significance The US shale industry has emerged from the worst of the crude price downturn battered, but also leaner and more efficient. Many shale producers are eager to return to growth, buoyed by a more stable oil price at around 50 dollars per barrel. However, oil prices need to rise somewhat higher still to give enough of a jolt to the industry to see US oil production return to meaningful growth. Impacts Oilfield service companies, especially fracking specialists, stand to gain if shale drilling activity picks up on the back of higher prices. The Permian shale in West Texas will lead any US shale recovery, due to its lower costs and large reserves, boosting the region’s economy. The Bakken and Eagle Ford shale plays will follow the Permian shale in a price recovery. Prices above 70 dollars per barrel would probably be required for investment to return to Gulf of Mexico deepwater projects.

Improving Well Completion via Real-Time Microseismic Monitoring: A West Texas Case Study

2010 ◽  
Author(s):  
Efejera Akpodiate Ejofodomi ◽  
Malcolm Yates ◽  
Robert Downie ◽  
Tarik Itibrout ◽  
O.A. Catoi
Keyword(s):  
Real Time ◽  
Microseismic Monitoring ◽  
Well Completion ◽  
West Texas

Capital Budgeting and Public Investment Projects in Ukraine

2019 ◽  
pp. 93-112
Author(s):  
Olha Krupa
Keyword(s):  
Capital Investment ◽  
Capital Expenditure ◽  
Public Capital ◽  
Capital Budgeting ◽  
Budget Process ◽  
Capital Investments ◽  
Public Projects ◽  
Capital Spending ◽  
The Government ◽  
And Performance

This chapter discusses the budget process for public capital investments in Ukraine, presents controversies in the current process, and offers several avenues for improvement. In doing so, the author provides a description of the country's normative capital public budgeting framework, presents the institutional setup, and tracks Ukraine's public capital expenditure trends for nearly three decades (1991-2016). The study then discusses implementation, audit, and performance issues in Ukraine's public capital expenditure management and provides recommendations. Because of the country's limited fiscal capacity as compared to its massive infrastructure needs, the author posits that Ukraine can no longer afford to delay or ignore its most pressing public capital investment needs. Because the current list of capital investment proposals is underfunded and too long, the author suggests that the government focuses on finishing strategic, high-priority public projects, while other capital spending proposals target private sector financing once it becomes more readily available.

US consumption may start to pick up

2015 ◽  
Keyword(s):  
Trade Balance ◽  
Oil Prices ◽  
Energy Prices ◽  
Trust Fund ◽  
Content Type ◽  
Consumption Expenditures ◽  
Us Economy ◽  
West Texas ◽  
Personal Consumption ◽  
The Us

Significance One of the conundrums of the US economy that will influence the Federal Reserve's timing of an interest rate rise (currently projected for September) is where the savings from low energy prices have gone. Oil prices have dropped sharply since September 2014, from 97 dollars per barrel for West Texas Intermediate in June 2014 to 60 dollars per barrel today. Yet US personal consumption expenditures (PCE) only grew by 2.7%, well below the rate of growth of personal income, 4.1%. Impacts Greater spending on petrol will help the Highway Trust Fund slightly, but not before a new funding package is due by July 31. Low oil prices will outweigh consumer savings in such producing states as Texas and North Dakota. Greater consumer spending will adversely affect the US trade balance, as imports will rise due to the strong dollar.

scholarly journals A Review of Post Privatization Performance of Ashaka Cement Manufacturing Company Nigeria PLC through the use of Financial Ratios

2012 ◽  
Vol 3 (12) ◽  
pp. 382-388
Author(s):  
Abubakar Muhammed Magaji
Keyword(s):  
Capital Investment ◽  
Time Series Data ◽  
Technical Committee ◽  
Series Data ◽  
Company Performance ◽  
Public Enterprises ◽  
Formal Sector ◽  
Set Up ◽  
Cement Manufacturing ◽  
Fixed Capital Investment

Privatization as a reform policy package has been adopted by both developed and developing countries’ economies. Nigeria as a developing country has large public enterprises which has about 57 percent of fixed capital investment and about 66 percent of formal sector employment by 1997. These enterprises performed below expectation due to multiple problems. Technical Committee on Privatization and Commercialization (TCPC) was set up to privatize the enterprises and the privatization have since commenced. The paper reviewed Ashaka cement company performance as a privatized enterprise after privatization. Managers of business organization must have reliable analytical tools for taking a rational decision. Ratio is one of such tools. Time series data from Ashaka Cement Company was used. The performance of the company has improved after privatization.

Oil and gas majors are decarbonising their businesses

2021 ◽  
Keyword(s):  
Oil And Gas ◽  
Energy Transition ◽  
Gas Production ◽  
Power Sector ◽  
Oil And Gas Production ◽  
Content Type ◽  
Oil Reserves ◽  
The Us ◽  
New Energy ◽  
Capital Spending

Significance While the US oil majors are adopting strategies primarily based on decarbonising oil and gas production, European companies are also developing new businesses designed to compensate for future demand-led reductions in oil and gas revenues. The European majors’ entry into the power sector and renewable energy markets brings new, well-financed and technologically proficient competitors into a sector made up predominantly of utilities and smaller developers. Impacts Hydrocarbon majors' capital spending on renewables will rise over the next decade. The oil majors will continue to buy into promising new energy transition technologies. These companies will invest in oil output and protect their legacy assets, but their valuations will be less driven by their oil reserves.

678 Challenges of Well Completion Design & Operation Solutions for Deep Gas Well with Multiple Producing Zone in Mildly Overpressured Reservoirs at Offshore Malaysia

2021 ◽  
Author(s):  
Hazirah Abdul Uloom ◽  
Asba Madzidah Abu Bakar ◽  
M. Mifdhal Hussain ◽  
Fuziana Tusimin ◽  
Zaidi Rahimy M. Ghazali ◽  
...  
Keyword(s):  
Material Selection ◽  
Drill Pipe ◽  
Gas Production ◽  
Close Monitoring ◽  
Actual Performance ◽  
Shallow Reservoir ◽  
Drilling Rig ◽  
Well Completion ◽  
Threshold Limit ◽  
Tubing Material

Abstract Based on the production data from first development campaign in 2017, contamination reading of CO2 and H2S from gas production wells were observed increasing from 3% to 10% and from 3ppm to 16ppm respectively within one year production. These findings have triggered the revisit in 2019 development campaign optimization strategy in terms of material selection, number of wells, reservoir targets, and completion design. Thus, tubing material was upgraded to HP1-13CR for the upper part of tubing up to 10,000 ft-MDDF (feet measure depth drilling rig floor) to avoid SSC risk due to the geostatic undisturbed temperature is less than 80 deg C, however the material of deeper tubing remains as 13CR-L80 as per 2017 campaign. Moreover, the mercury content from first campaign was observed to be above threshold limit from intermediate reservoir based on mercury mapping exercise done in August 2018.As the mercury removal system is not incorporated in the surface facilities, the mercury reading from the well in the 2019 campaign need a close monitoring during well testing so that appropriate action can be taken in case the recorded contaminant reading is high. Dedicated zonal sampling plan to be performed if the commingle zone (total) mercury reading was recorded to be above the threshold limit, and that zones will be shut off to preserve the surface facilities. Opportunity was grabbed to optimize number of wells by completing both shallow and intermediate sections in a single selective completion to maximize the project value. However, this combination will lead to major challenges during operation due to the huge difference in reservoir pressure and permeability contrast in each perforated reservoir as the required overbalanced pressure of completion brine for shallow reservoir is much lesser than the requirement for the mildly overpressure intermediate reservoir. Thus, a potential risk of severe losses and well control is present at shallow reservoir. To mitigate this risk, loss circulation material was pre-spotted in the TCP (Tubing conveyed perforation) BHA prior to fire the gun to allow for self-curing process should losses take place. During the first development campaign, the completion tubing was running in hole in two stages. The lower completion was deployed via drill pipe and the perforated zones was secured with fluid loss device located between lower completion tubing and gravel pack packer. The upper completion tubing was then deployed and tied back to the lower completion packer. This approach was applied as mitigation to prevent fluid losses and to ensure the tubing can be safely deployed to the intended final depth. However, based on the actual performance and losses rate data during the first campaign, the completion design in second campaign was optimized and deployed in single stage. Since shallow and intermediate reservoir were combined in multiple production zones where five SSD (Sliding Side Door) were installed, the slickline option to set packer was waived due to the risk of setting tubing plug in deep wells. Pump out plug was considered as an option but then dropped due to high hydrostatic pressure. The packer setting pressure was too close to plug shear pressure. Therefore, a self-disappearing plug was utilized as it did not require any slickline intervention and can be ruptured by pressure cycle. With this option, risk of pre-mature rupture of plug was eliminated. The paper will discuss in detail each challenge mentioned above together with details calculation that was performed throughout evaluation and selection processes prior best solution being selected as these optimizations resulted in nearly three days saving of rig time, contributing to 2.6% of well cost reduction and the required number of wells were optimized to be three instead of four wells. Moreover, a safer production life of wells by selecting a suitable tubing material and eliminating the risk of mercury production above the above threshold limit.

scholarly journals Biological and market responses of pine forests in the US Southeast to carbon fertilization

2020 ◽  
Vol 169 ◽  
pp. 106491
Author(s):  
Jesse D. Henderson ◽  
Rajan Parajuli ◽  
Robert C. Abt
Keyword(s):  
Pine Forests ◽  
Market Responses ◽  
The Us ◽  
Carbon Fertilization

scholarly journals Extreme events driving year-to-year differences in gross primary productivity across the US

2021 ◽  
Author(s):  
Alexander J. Turner ◽  
Philipp Köhler ◽  
Troy S. Magney ◽  
Christian Frankenberg ◽  
Inez Fung ◽  
...  
Keyword(s):  
South Dakota ◽  
Mixture Model ◽  
Primary Productivity ◽  
Gaussian Mixture ◽  
Gross Primary Productivity ◽  
Moving Window ◽  
Extreme Precipitation Events ◽  
West Texas ◽  
The Us ◽  
Precipitation Events

Abstract. Solar-Induced chlorophyll Fluorescence (SIF) has previously been shown to strongly correlate with gross primary productivity (GPP), however this relationship has not yet been quantified for the recently launched TROPOspheric Monitoring Instrument (TROPOMI). Here we use a Gaussian mixture model to develop a parsimonious relationship between SIF from TROPOMI and GPP from flux towers across the conterminous United States (CONUS). The mixture model indicates the SIF-GPP relationship can be characterized by a linear model with two terms. We then estimate GPP across CONUS at 500-m spatial resolution over a 16-day moving window. We find that CONUS GPP varies by less than 4 % between 2018 and 2019. However, we observe four extreme precipitation events that induce regional GPP anomalies: drought in west Texas, flooding in the midwestern US, drought in South Dakota, and drought in California. Taken together, these events account for 28 % of the year-to-year GPP differences across CONUS.

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