Vol. 29, No. 10 October 2008
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On the cover: Energy is the name of game, and the entire planet seems ready to be part of the action. This month’s EXPLORER takes a look at several areas of interest, as represented on the cover by scenes (clockwise from top) from Ghana (two), Egypt, Texas and Greenland. Stories on all these areas – and more – are inside. Cover concept by Rusty Johnson; photos courtesy of Kosmos Energy, Apache Corp., Brayton Operating Corp. and Tony Tankard.
Bye, bye drilling ban, hello offshore exploration activities. 8 The question is, where is the best U.S. offshore potential?
A world of possibilities: One company’s survey results point 14 out the planet’s top 20 areas of interest for the coming year.
Natural gas has fueled Egypt’s climb to one of the top plays 16 on the international arena. Next stop, Cape Town. AAPG’s 2008 International Conference and Exhibition (ICE) will be held Oct. 26-29 at the Cape Town International Convention Centre – the It’s hot, hot, hot – that’s right, we’re talking about the Arctic, 20 Association’s first ever ICE in South Africa. The meeting’s theme is “African Energy, where an enormous amount of energy potential is about to Global Impact,” and it will feature 70-plus technical sessions exploring the latest in collide with an enormous potential for political conflict. exploration, geology, geosciences and industry trends. The Geological Society of South Africa will serve as conference co-hosts. For more information see page 30, or go online to www.aapg.org/capetown/index.cfm. Victoria’s Secret (no, not that one) is reminding people that 26 what they see at first is not always what they get later.
Small players, big deals: Independents are becoming 28 increasingly important in Africa’s energy picture. Communications Gap: Former AAPG president Marlan Downey is this year’s 32 Sidney Powers Memorial Award winner, heading the list of An Issue for the Ages AAPG honors and awards. By SCOTT W. TINKER ranks bemoan the lack For the past few months we have been of personal contact The prospect of commercial-scale carbon sequestration 46 discussing bridge building, with that the wired world has taken another step forward. particular focus on energy/economy and has brought us; energy/environment bridges. today’s “noobs” (I Regardless of the bridge – learned that word from science/policy, industry/government, my 18-year-old son; I academe/industry – communication is think it means fundamental. It is easy to say, but hard to something like Making a Difference 40 Spotlight On … 56 do; your “clear” may be their “mud.” “newbie” or “rookie”) Communication between technical don’t necessarily Geophysical Corner 42 Membership and Certification 60 Tinker disciplines, generations or geopolitical concur. For example, Washington Watch 44 In Memory 62 regions is a great challenge, before they met in person, my son knew incorporating such differences as his roommate better via Facebook than I Professional News Briefs 48 Classified Ads 66 education, genetic coding, societal did after several weeks of rooming with Regions and Sections 49 Readers’ Forum 67 indoctrination, language and mine 30 years ago. generational perspective. If “let’s keep in touch” poses a www.Update 50 Director’s Corner 70 generational challenge, consider *** nuanced concepts such as work ethic, Foundation Update 54 DPA Column 70 professionalism and commitment, all How often has each of us witnessed, which have the potential, when debated or been party to, a communication that across generations, to create enough breaks down owing to lack of cross- conversational energy (sparks!) to power AAPG Headquarters – 1-800-364-2274 (U.S. & Canada only), others 1-918-584-2555 generational perspective? greater Beijing (or at least Flower Mound, Let us examine the simple phase, Texas). Communications Director Correspondents Advertising Coordinator Larry Nation David Brown Brenda Merideth “Let’s keep in touch.” To a 20-year-old student who has e-mail: [email protected] Louise S. Durham P.O. Box 979 With obvious generalization, to a grown up in an electronic age with 24/7 Barry Friedman Tulsa, Okla. 74101 person in her 60s this may mean a social global connectedness, “work ethic” may telephone: (918) 560-2647 visit, a telephone call on her landline or a mean something very different than it Managing Editor letter by snail mail. To someone in his 40s does to someone still getting used to the Vern Stefanic Graphics/Production (U.S. and Canada only: e-mail: [email protected] Rusty Johnson 1-800-288-7636) it may mean a call on his cell phone or an concept of a wireless phone. e-mail: [email protected] (Note: The above number is for e-mail. To someone in her 20’s it could Perceptions of generational difference advertising purposes only.) mean an online “chat,” Facebook hook Communications Project fax: (918) 560-2636 up or instant message. Specialist Susie Moore e-mail: [email protected] The more “seasoned” among our See President, page 6 e-mail: [email protected]
Vol. 29, No. 10 The AAPG EXPLORER (ISSN 0195-2986) is published monthly for members. Published at AAPG headquarters, 1444 S. Boulder Fall Conference Rescheduled in Houston Ave., P.O. Box 979, Tulsa, Okla. 74101, (918) 584-2555. e-mail address: [email protected] Periodicals postage paid at Tulsa, Okla., and at additional mailing offices. Printed in the U.S.A. AAPG’s Fall Education Conference, covering such topics as fractured Note to members: $6 of annual dues pays for one year’s subscription to the EXPLORER. Airmail service for members: $45. canceled in September by Hurricane reservoirs, reservoir characteristics and Subscription rates for non-members: $63 for 12 issues; add $67 for airmail service. Advertising rates: Contact Brenda Merideth, AAPG headquarters. Subscriptions: Contact Veta McCoy, AAPG headquarters. Unsolicited manuscripts, photographs and videos Ike’s assault on the Texas coast, has geomechanics, pore pressure must be accompanied by a stamped, self-addressed envelope to ensure return. been rescheduled for Dec. 8-12 in prediction, fault seal analysis, seismic The American Association of Petroleum Geologists (AAPG) does not endorse or recommend any products or services that may Houston. amplitude interpretation, thrust systems be cited, used or discussed in AAPG publications or in presentations at events associated with AAPG. The popular conference offers five and salt tectonics. Copyright 2008 by the American Association of Petroleum Geologists. All rights reserved. days of three concurrent sessions Registration and complete around the theme of structural geology information can be found online at POSTMASTER: Please send address changes to AAPG EXPLORER, P.O. Box 979, Tulsa, Okla. 74101. – participants can “mix and match” http://www.aapg.org/education/fec.cfm. Canada Publication Number 40046336. Return undeliverable Canadian address to: P.O. Box 503, RPO West Beaver Creek, Richmond Hill, ON L4B 4R6 courses according to their needs –
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the less experienced to listen, digest President and share, with some measure of Candidate Bios Online respect for the experience of those who from page 3 have gone before, perspectives on the ways of the modern world. If done well – and if you will permit Biographies and individual consultant, Lakewood, Calif. have been around as long as there have me an age-biased aside, perhaps best information for AAPG officer candidates Ë David G. Rensink, Apache Corp., been generations. Arguably, a young done face-to-face – then each can take for the 2009-10 term is available online Houston. professional is just as committed and some measure of pride and ownership at www.aapg.org. hard working relative to his world as a as inevitable change takes hold and The information also will be inserted Vice President-Regions seasoned veteran is relative to hers. To carries us forward. in an upcoming EXPLORER. Ë Adekunle A. Adesida, Shell believe otherwise would most certainly The president-elect winner will serve Petroleum Development, Nigeria. inhibit, if not prohibit, the building of a *** as AAPG president in 2010-11. The Ë Alfredo E. Guzman, consultant, generational bridge. terms for both vice president-Regions Veracruz, Mexico. It is a given that the future of AAPG The individual challenge of cross- and secretary are two years. and other professional associations and generational communication emerges Ballots will be mailed in spring 2009. Secretary societies rests in the hands of our young on a much broader geopolitical scale: The slate is: Ë William S. Houston, Samson, members. Therefore, fundamental is the the variation in age demographics by Denver. willingness of the more seasoned to country and region. President-Elect Ë Peter MacKenzie, MacKenzie Land reach out, engage and listen to and In Canada, China, much of Europe, Ë Donald D. Clarke, geological & Exploration, Worthington, Ohio. J offer, where appropriate, wise counsel. Japan, Russia, the United States and Also fundamental is the willingness of other countries heavily impacted by World War II, age demographics are commonly bimodal, with a mode around 50 years of age and an “echo” generation around 20-25 years of age. A great challenge in many of these nations is supporting an aging yet reasonably healthy population who wish to retire, while at the same time finding When it’s a question of acquisition services...... Ask Fugro ways of maintaining growth and remaining relevant in the world. By contrast Brazil, India, Mexico, Saudi Arabia and others have a single mode around 15-20 years of age. Their great challenges include managing growth and resource consumption and employing and leveraging the potential of a young, able work force. If jobs are not available and the employment need is not met, unemployed youth find other ways to be heard – ways that are often not productive, and at times even destructive. We live in an interconnected world. Developed nations with a mature populous talking “down” to developing nations dominated by youth works no better than seasoned veterans lecturing to inexperienced young professionals. Acceptance of the inherent differences that the wisdom of time and vigor of youth provide – across generations and between regions with significantly different age demographics – is vital to the health of our Association, of our industry and of a world that relies on energy for growth and prosperity.
***
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OCTOBER 2008 8 California is the real OCS prize Drill Bans Under Greater Scrutiny By DAVID BROWN EXPLORER Correspondent For over two decades, the oil and gas industry has fought to open restricted offshore areas of the United States to drilling. That effort primarily targeted the offshore ANWR (Alaska National Wildlife Refuge) area of Alaska and the eastern Gulf of Mexico. Today, prospects for lifting the drilling ban look better than ever: President George W. Bush ended a long-standing presidential moratorium on offshore exploration in July. A nonpartisan group in Congress quickly came out in support of opening up exploration offshore Georgia, the Carolinas and Virginia immediately, if those states agree. So, where will the industry want to head first if offshore drilling restrictions finally end? Straight to sunny Southern California. The reason for that likely choice involves geology, crude oil prospectivity, weather conditions, existing infrastructure, access to markets and several other important considerations. member and partner and geophysicist Management Service (MMS) calls the Regional Reports What’s so great for Silver Tip Energy and Spyglass “fractured siliceous play.” about offshore Exploration & Production in Santa “Here you’ve got the Monterey,” According to the MMS, about 574 Christensen California? Barbara, Calif. Christensen noted, “and if it’s in million acres of the U.S. Outer “It’s one of the Much of California’s offshore oil association with all sorts of traps, it’s Continental Shelf (OCS) are currently off- richest petroleum systems in the world,” promise lies in Monterey formation-type productive.” said Karen Christensen, an AAPG rocks, or what the U.S. Minerals See OCS, page 10
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Oil and Gas Resources in OCS Areas Unavailable for Leasing and Development recoverable resource of 15.38 Bbo and OCS 76.77 Tcf. Area Undiscovered Technically Recoverable The central and western Gulf of from page 8 OCS Areas (million Resources (mean estimate) Mexico areas have become the prime Withdrawn from Leasing acres) Oil (Bbbls) Natural Gas (Tcf) driver for offshore U.S. oil production. limits to leasing and development. The Chukchi Sea remains almost It evaluated the OCS hydrocarbon Washington-Oregon 71.00 0.40 2.28 unexplored. But in February this year, potential of Alaska, the Pacific Coast, Northern California 44.79 2.08 3.58 the MMS held a successful lease sale the Gulf of Mexico and the Atlantic Central California 43.68 2.31 2.41 that included about a million square Coast in its “Assessment of miles and 5,355 whole and partial Undiscovered Technically Recoverable Southern California* 88.99 5.58 9.75 Chukchi Sea blocks. Oil and Gas Resources of the Nation’s Central, Eastern Gulf of Mexico* 65.87 3.65 21.46 That sale drew $2.66 billion in high Outer Continental Shelf, 2006.” North, Mid and South Atlantic 259.53 3.82 36.99 bids on 488 blocks, with Shell and The MMS mean estimate of total ConocoPhillips the leading bidders. Total: 573.86 17.84 76.47 technically recoverable resources of the U.S. OCS was 85.88 billion barrels of oil * Does not include resources in areas already under lease. Ice in Your Drink and 418.88 trillion cubic feet of gas. In estimating economically Using either approach, the most And second was not offshore ANWR Christensen is probably one of the recoverable OCS resources, the highest significant productive and prospective or even Alaska’s Beaufort Sea – high few experts who has worked evaluations price levels the MMS projected were OCS area by far was the central Gulf of profile areas in the public debate – but in both the Chukchi Sea and offshore $80/barrel and $12.10/Mcf. At those Mexico, with a mean technically the Chukchi Sea OCS area offshore California. levels, it forecast recovery of 73.4 Bbo recoverable resource of 30.32 Bbo and northwestern Alaska. The MMS held earlier offshore and 330.54 Tcf. 144.77 Tcf. That area had an estimated northwest Alaska lease sales in 1988 with 350 leases issued and in 1991 with 28 leases issued. “In the Chukchi Sea a number of leases were bought by majors, including Texaco and a Conoco-Shell venture, at the time. They drilled five wells, I think, on big, big structures,” Christensen recalled. “The problem was at that point it took many billions of barrels to reach an economic field size,” she said. Northwest Alaska’s large offshore area could become a production powerhouse at some point, but Southern California has certain advantages for exploration. First, the waters off California tend to freeze less often than the waters off Alaska. And California gets a lot fewer icebergs. Christensen described 100-foot-plus water depths in the Chukchi Sea where the sea-bottom is so heavily gouged that pipelines would be problematic. “When you’ve got the whole ice pack moving south, how do you put a platform in the middle of it?” she asked. “That’s a real logistical challenge.” California’s existing production also provides an infrastructure in-place and near-shore for future development. Offshore northern Alaska problems include not only weather and remoteness but a lack of gathering and transportation facilities, especially for natural gas. A proposed Trans-Alaska gas pipeline could take 10 years to build. “The Japanese have tried to get the ability to come in with tankers so there are absolutely things that can be done with the gas,” Christensen said. “The question is, what’s the timeframe for that?”
Signs of Success?
All together, areas currently available for leasing contain about 80 percent of the total recoverable OCS production in the MMS assessment. Is the industry undertaking a largely symbolic fight to open offshore areas for drilling? Not when it comes to California. Offshore California has a technically recoverable OCS oil resource of more than 10.1 Bbo, according to the MMS. That compares to 3.88 Bbo for the eastern Gulf of Mexico and 1.91 Bbo for the North Atlantic OCS area. The 2006 MMS assessment for the offshore Pacific region closely reflects the agency’s previous assessment for that region, according to Ken Piper. Piper is senior geophysicist for the Office of Reservoir Evaluation and Production (OREP), MMS Pacific OCS Region in Camarillo, Calif., and served
See Potential, page 12
OCTOBER 2008 11
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the most prolific oil and gas trends in the Potential till, there are signs that high crude prices Los Angeles Basin,” Mayerson noted. from page 10 Sand $4-a-gallon gasoline have changed Reality Check as a lead researcher for the assessment. Before the industry starts looking for “The only thing we changed in the attitudes – even on the West Coast. capital to drill offshore California, it might Santa Maria Basin area included a need to write itself a reality check. revision of field studies,” he said. “There Much of the MMS OCS central was a slight change in that there’s been about a third of the undiscovered gas. Inglewood Fault near the federal/state California assessment area will be off- more production, so the reserves Piper said the fractured siliceous boundary,” said AAPG member Drew limits by inclusion in national marine numbers have changed a little. plays still comprise the most important Mayerson, chief of the MMS Pacific OCS sanctuaries, including the Cordell Bank “The other thing is that the economic targets from offshore Mendocino to Region OREP in Camarillo. and Monterey Bay sanctuaries. assessment numbers are reflecting south of the Santa Barbara Channel – Both coreholes were relatively “A lot of the central California areas higher dollar values,” he added. the Los Angeles Basin, offshore Long shallow – but the Mobil San Clemente are in the marine reserve sanctuary,” In a previous MMS assessment, the Beach and offshore Oceanside – where did penetrate Pliocene and Miocene Mayerson noted. “The large part of the region’s top five prospects were formations tend to include more clastics. sediments, presumably of the Bodega Basin is in a marine sanctuary Monterey reservoir-type plays in the Off southernmost California, a lack of Capistrano and Monterey Formations, or a proposed sanctuary.” Santa Barbara-Ventura Basin and well data makes the assessment work he said. And California’s tendency toward offshore central California. more challenging. “However, high-quality seismic data heavy oil is no secret, with some crude Nine of 46 assessed plays contained “Only two coreholes have been has been collected on the federal side in the 10-16 degree API gravity range. Monterey-type rocks, but those nine drilled in the offshore Oceanside- and it shows a deep basin with well- “It varies in parts of California where plays accounted for more than half of Capistrano Basin area and both are on defined folds all the way up to the we have discoveries as high as 34 the projected undiscovered oil and the northeast side of the Newport- Newport-Inglewood Fault Zone, one of degrees (gravity), so it can be quite variable depending on where you are,” Mayerson said. If the offshore drilling ban is lifted, the MMS would have to begin the process of identifying areas for leasing and establishing lease sales. That will depend on which areas are available. “Over 90 percent of the oil offshore the West Coast is within 25 miles of the coast,” Mayerson noted. “There are some proposals out there that say it’s OK to drill 50 miles or more offshore,” he said. “That would do very little for offshore California.”
The Tide Turns
Then there’s the question of whether or not the current drilling restrictions will end at all. In the U.S. Congress, five Democrats and five Republicans have joined together for energy policy reform, calling themselves the Gang of 10. They proposed a New Energy Reform Act of 2008 – or New ERA – that would open offshore South Atlantic and Mid- Atlantic areas for exploration. But those areas had a combined total OCS recoverable resource of only 1.91 Bbo and 18.99 Tcf in the MMS assessment, about the same as the North Atlantic OCS area. In July, Bush lifted a Presidential moratorium on offshore drilling put in place by his father, President George H.W. Bush, in 1990 and extended to 2012 by President Bill Clinton. George W. Bush has challenged Congress to end its own offshore drilling restrictions, so far without action. If individual states receive decision- making authority or influence for opening offshore areas, California might opt out. A world of intelligence, Still, there are signs that high crude prices and $4-a-gallon gasoline have delivered. changed attitudes – even on the West Coast. John Minch, a longtime active AAPG As the search for energy resources moves to the data acquired and or processed from land, transition member and principal of John Minch world’s less-hospitable regions, one company stands zones or shallow water regions. And bring back the and Associates in Santa Barbara, noted ready to venture forth where few have dared. seismic data that is worth developing. California’s longstanding antipathy toward offshore drilling proposals. Since the 1969 Santa Barbara oil spill Geokinetics has blazed new trails into some of the Which is why more and more results-oriented energy – actually a blowout on a Union Oil planet’s most extreme environments. Pioneered the companies depend on Geokinetics. We deliver the platform six miles offshore – “there’s use of innovative technologies. Adapted to harsh decision-critical intelligence it takes to cut the cost been a tremendous number of people conditions. And accepted challenges from which of every barrel of oil you discover. against it,” he said. others shrink. All to bring you 2D/3D/4D seismic Now Minch senses a turn in the offshore tide. “Things have changed dramatically. I honestly think you are going to see a Ingenuity. Expanding. Worldwide. www.geokinetics.com real change of attitude,” he said. One sign of that shift is a recent action by the Santa Barbara County Board of Supervisors. “The County Board of Supervisors met earlier this week (early September) and asked the state to pursue offshore drilling,” Minch said, and added: “I never thought I’d ever see that.” J
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OCTOBER 2008 14 Libya, UK rank high Egypt Gets Interest from Explorers
By LARRY NATION AAPG Communications Director What area most intrigues petroleum explorers? One insight into that answer is available courtesy of Fugro Robertson, which conducts its “International New Ventures Survey” each year. To execute the survey, confidential questionnaires are distributed to oil companies involved in E&P ventures outside North America. The companies are asked to rate their level of interest in new ventures in 158 countries as well as in four frontier The Top 20 Countries regions of the United States and Canada. 1. Egypt (2) Country rankings are assembled and then analyzed to identify the 2. Libya (5), United Kingdom (1) determinants influencing their movement up or down from the previous 4. Tunisia (7) year. Egypt was ranked first for 2008. Photo courtesy of Apache Corp. 5. Indonesia (6) The country captured the top spot, Explorers’ interest in Egypt has been pumped up by 2008 licensing rounds. moving up from second place last year. 6. Colombia (7), Gabon (9), Vietnam (22) It bumped the United Kingdom down to a tie for second place from the number Egyptian production and launched licensing rounds offering 9. Algeria (3) one position it claimed in 2007. consumption of natural gas continue to about 20 and 30 blocks. Fugro Robertson noted that with six rise with a total of 1.9 Tcf produced and As for the rest of the world, the 10. Angola (14), Iraq (17), Malaysia (24) countries in the Top 10, Africa is the 1.3 Tcf consumed in 2006, making biggest movers in the 2008 list was most popular region once again, with Egypt a net gas exporter. Thailand, jumping from 57 to 14; 13. Australia (4) West Africa being represented by The offshore Saqqara field, Vietnam, from 22 to the number six spot; Gabon and Angola. discovered in 2003 and representing the Malaysia from 24 to 10; and India from 14 Oman (18), Thailand (57) In 2007, Egypt produced 664,000 largest new crude oil discovery in Egypt 28 to 16. barrels of oil daily continuing its fall from since 1989, went online last May. Southeast Asia/Australasia is the 16. Brazil (13), India (28) a high of 950,000 bod in 1995, the U.S. Adjacent to the existing El-Morgan second most alluring region. Energy Information Administration field, Saqqara reached a flow rate of Fugro Robertson noted that Norway, 18. Equatorial Guinea (21), Norway (12) reported in August. Yet, production was 30,000 bod and is expected to reach a usually a strong performer, dropped Peru (25) sufficient to prevent Egypt from peak production of around 40,000 to from 12th in 2007 to spot 18, tied with becoming a net importer of oil as some 50,000 bod. Equatorial Guinea and Peru, which (Last year’s ranking in parenthesis.) had predicted. In early 2008 the government joined the top 20. J
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OCTOBER 2008 16 Multiple targets lower risk Gas Success Fuels Interest in Egypt
By LOUISE S. DURHAM – referred to in- EXPLORER Correspondent house as “two A lot of countries promise big potential times for the coming exploration season, but only production,” or one could head the list. 2X – is making According to those who responded to great strides, Fugro Robertson’s annual New Ventures according to Survey, the 2008 winner is… Wehr. Egypt. “We’re Those who have been following the meeting our targets, which is extremely international scene won’t be surprised. gratifying,” he said. “We’re increasing our The hot resource there is natural gas – in drilling and have a very aggressive fact, it is forecasted to be the primary exploration program coming up. growth engine of Egypt’s energy sector for “The really good story this year is the the foreseeable future, according to the infill drilling and full implementation of the Energy Information Administration (EIA). waterflood patterns in the Bahariya Major recent discoveries are the driving (formation),” Wehr said. “Our surge in force for this growth. liquids growth in 2008 has been driven Most current exploration and production Photo courtesy of Apache Corp. largely by that program. is focused in the Nile Delta region and the “We’re doing a lot of black oil A recent survey to find the world’s top new venture locales had a new number one this Western Desert, according to the EIA. development drilling,” he noted, “and our year – it’s Egypt, where successful natural gas plays are causing a lot of smiles. Specifically, the most important natural exploration program is shifting more and gas fields in the Western Desert are located the top producer as well as the most active “Most of our targets (in the Western more to deep gas exploration to replace in the Obeiyed and Khalda areas, driller. Desert) are multiple targets,” Wehr said, reserves we’re beginning to produce from according to the agency, because they In fact, Apache drilled the largest “and, especially in the Cretaceous Qasr and our other gas fields, as we have lower development and operating discovery in its history in 2003 at the Qasr reservoirs, this has allowed us to use the increase (infrastructure) capacity. costs than fields in the Mediterranean field on its Khalda concession in the lower risk target as a kind of safety net and “We’re waiting on the infrastructure to region thanks to an expanding network of Western Desert. The discovery had gross try some interesting and kind of risky things. really turn the gas on,” Wehr said. pipelines and processing plants that enable proved reserves of 2.5 Tcf of gas and 80 “You couldn’t justify trying this with a In fact, new processing trains will soon quick transport to Alexandria via a 180-mile MMbo of condensate. single objective,” he added, “and if these come on at Salam (Khalda) to handle Qasr pipeline. Qasr production is from the Jurassic things work they can be used in other and other deep gas, according to Bill Mintz, Apache Corp. lays claim to being the Lower Safa formation, which is a thick wells.” director of public affairs at Apache. largest acreage holder and most active package of amalgamated braided fluvial Being able to stack up targets is one of Salam Plant Trains 3 and 4 are driller in Egypt. Its acreage position tallied sandstones having good to excellent the ways over the last five years his scheduled for completion in the last quarter 18.9 million gross acres in 23 separate reservoir characteristics, according to company “grew production in the Khalda of 2008 and will add 200 MMcf/d capacity, concessions (19 producing concessions) at AAPG member Fred Wehr, deputy concession,” Wehr noted, “going into with net to Apache being approximately 100 the end of 2007. exploration manager for Khalda Petroleum existing fields and really jerking them hard MMcf/d and 5,000 barrels of condensate. The company is the third largest Company/Apache. with a lot of infill drilling.” Plant Train 5, set for mid-2010 producer of liquid hydrocarbons and natural Wehr noted that Qasr has additional The company struck an MOU with the completion, will add 100 MMcf/d of gas in the country, and it maintains a major production from the shallower Cretaceous Egyptian government to double its processing capacity (50 MMcf/d and 2,500 presence in the Western Desert, where it’s Alam el Bueib formation. production by year-end 2010. The program barrels of condensate net). J
OCTOBER 2008 17
OCTOBER 2008 18 Lots to explore Libya Emerging as Attractive Play
By LOUISE S. DURHAM EXPLORER Correspondent nterest in Libya has been on the upswing Egypt clearly is hot in the international arena, but the scene at its neighbor to the Ifollowing the lifting in 2004 of economic west – Libya – appears close to being equally spicy. sanctions. In fact, Libya captured the number two spot in the country rankings from the Fugro Robertson annual New Ventures Survey. The oil companies’ interest in Libya With its vast, largely unexplored areas, Adding to the appeal are relatively low has been on the upswing following the Libya has long been viewed as one of the production costs and geographic lifting in 2004 of economic sanctions most appealing exploration regions on proximity to Western markets. imposed by the United States, which the international scene. In fact, it harbors ExxonMobil is a high profile player in placed the country off limits to an estimated 36 billion barrels of high Libya – for the second time you might investments by domestic companies. quality oil reserves, according to the EIA. say. Prior to merging, both Exxon and Mobil had been among the earliest players to enter Libya in the 1960s. Before exiting the country prior to the sanctions, total production between the two companies exceeded one million barrels per day, according to Russ Bellis, exploration director at ExxonMobil International. The company re-entered Libya in 2005. “Our objectives have not changed from what they were originally, which is to build a material presence and work with Realistically simulate an the Libyan National Oil Corporation (LNOC) to fully exploit, find and further develop hydrocarbon resources in Libya,” Bellis said. “It’s a simple, broad-based strategy.” entire seismic survey ‘A Plum Spot’ The company recently was awarded an Exploration and Production Sharing Agreement (EPSA) with the LNOC, which was ratified in June by the General People’s Congress, Bellis noted. The Predict imaging imperfections caused by: EPSA is for Contract Area 21 about 110 miles offshore in the Sirte Basin, which is • complex structure, • acquisition design, said to be a world-class petroleum province. • multiples, statics, and other noise, Contract Area 21 is in water depths that range from 5,400 feet to 8,700 feet. • subtle reservoir features, • processing limitations It’s likely a plum spot. “Based on what’s remaining in the offshore area, our assessments would indicate it would have the most significant remaining undrilled potential,” Bellis said, No-Compromise “because it’s an untested block in the Libyan offshore.” The company was given the green 3D Seismic Modeling Services & Software light to commence its now-completed 2-D seismic recording effort over the area prior to ratification of the EPSA. This enabled continuous shooting with the 2-D vessel used on Contract Area 20 just to the west. Wavefield snapshot with interval velocity overlay: The company currently is recording 3-D seismic on Area 20. Produce a fully Meanwhile, Bellis noted they are awaiting results of their proprietary realistic synthetic version of seabed logging recorded earlier in the year on Contract Areas 21 3D seismic and 44, located off the country’s northeast coast. survey for a “We have a deepwater drilling vessel contracted,” Bellis said, “and we’ll most fraction of the likely drill two wildcat wells in late 2009 cost of a real within the three Contract Areas we have.” He gives kudos to the United States survey. and Libya for making this activity possible. “We’re very pleased with the progress that appears to be being made between Libya and the United States in terms of The realism is essential for reliable results resolving the issues and coming to an agreement in terms of settlements for See examples of modeling impacting various historical activities,” Bellis said. “It’s our desire to maintain a presence acquisition, interpretation, and reservoirs at: www.tierrageo.com there for a long time.” J The industry leader, SEG convention booth #231
OCTOBER 2008 19
OCTOBER 2008 20 Ambiguities cloud definitions, boundaries Geology Matters in Law of the Sea
By LOUISE S. DURHAM EXPLORER Correspondent Arctic Petroleum Probability It’s an icy region, but when it comes to real estate the Arctic seafloor is hot. Today, countries that rim the Arctic Ocean are working diligently to collect data that will help them to provide the evidence needed to extend their coastal territory further out on the continental shelf than the typical 200 nautical miles. In fact, they’re eyeing the North Pole in some instances. The countries involved in the effort are: Canada. Denmark. Norway. Russia. The countries jockeying to extend their United States. coastlines are allowed 10 years from the In case you’re wondering why anyone date of ratification of the treaty to submit a would want to own the North Pole – aside claim. The Russians rushed right in to ratify from bragging rights – there’s potential and followed up by submitting a claim eight treasure to be found in this region atop the years ahead of their deadline, according to world. Ron Macnab, Geological Survey of Canada The Arctic may harbor as much as 22 (retired). percent of the technically recoverable Last month Russian president resources in the world, according to a U.S. Medvedev said Russia must fromally set its Geological Survey assessment. borders in the Arctic region in the near The recently released results of the future. assessment revealed the area north of the Norway also submitted early, and Arctic Circle holds: Canada and Denmark must submit by Estimated 90 billion barrels of 2013 and 2014 respectively. undiscovered, technically recoverable oil. The undisguised eagerness of the 1,670 trillion cubic feet of technically Russians was on full display last summer recoverable natural gas. territory, given they would also acquire will be granted via an orderly process in when they dropped a flag on the seafloor at 44 billion barrels of technically sovereign rights over the resources of the accordance with provisions of the 1982 the North Pole via a mini-sub – to the recoverable natural gas liquids. seafloor and the subsurface. U.N. Convention on the Law of the Sea, consternation of the other countries The magnitude of the estimated which established mineral resource rights involved in the boundary issues. resources no doubt will provide even more Planting the Flag and responsibilities. The United States has Some critics labeled the flag planting a impetus for the Arctic-bounding countries signed the treaty but the Senate has yet to to make the case to extend their coastal Any territorial extensions into the Arctic ratify. See Arctic, page 23
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OCTOBER 2008 22 Most within territorial limits Oil Survey Says Arctic Has Riches
By LOUISE S. DURHAM Arctic Oil Potential AAPG is planning a “Polar EXPLORER Correspondent Petroleum Potential” conference The U.S. Geological Survey recently focusing on the geology and other completed an assessment of undiscovered conventional oil and gas issues of Arctic exploration Sept. 28- resources in all areas north of the Arctic 30, 2009. Circle – and the numbers are a bit eye- The multi-nation program will be popping. held in Moscow, Russia. RosGeo, the In fact, the agency concluded that 90 Russia geological society, will act as billion barrels of oil, 1,669 trillion cubic feet host. of natural gas and 44 billion barrels of A call for papers will be issued in natural gas liquids may remain in the January. Arctic, awaiting discovery. More than 70 percent of the mean undiscovered oil resource is estimated to area, geographically speaking. occur in five provinces: More than 400 oil and gas fields Arctic Alaska. already have been discovered north of Amerasia Basin. the Arctic Circle, primarily onshore and in East Greenland Rift Basins. Russia for the most part, Gautier noted. East Barents Basin. They account for approximately 240 West Greenland-East Canada. billion barrels of oil and oil-equivalent Three provinces are thought to hold natural gas. more than 70 percent of the undiscovered This approximates 10 percent of the natural gas: world’s known conventional petroleum West Siberian Basin. resources (cumulative production and East Barents Basin. remaining proved reserves). Arctic Alaska. The CARA included only resources About 84 percent determined to be technically recoverable of the entire resource using current technology. Regarding the is expected to occur in offshore, the assumption is the resources offshore areas. the undiscovered resources up there are way or another,” he said. would be recoverable even in the It is noteworthy that concentrated between the shoreline and situation of permanent sea ice and most of the resource is the 500 meter contour line,” said AAPG Reviewing the Situation oceanic water depth. not under the North member Don Gautier, USGS geologist The estimates include no economic Pole but closer to and project chief for the agency’s The Arctic Circle encompasses about considerations. The study results include shore in areas that assessment, dubbed the Circum-Arctic 6 percent of the earth’s surface, and the no reference to exploration and aren’t subject to Resource Appraisal (CARA). extensive Arctic continental shelf region development costs, which would be territorial dispute. “We would think that most of that is may constitute the largest remaining “In our judgment, Gautier within the 200 nautical mile limit in one unexplored prospective hydrocarbon continued on next page
OCTOBER 2008 23 continued from previous page analysis and analog modeling. land claim,” Macnab said, “but there Using a newly compiled map of Arctic Arctic have been a lot of claims about the sedimentary basins, the CARA team considerable in this generally harsh inappropriateness of this. defined geologic provinces, each environment. from page 20 “Everyone should just take a Valium,” containing more than three kilometers of Although any meaningful development he said. “It’s not the opening shot of sedimentary strata, according to Gautier. of these resources is years away, it is political stunt; Macnab views the prickly World War III.” Assessment units (AU) – mappable perhaps fortuitous for the United States event with a more scientific eye. volumes of rock with common geologic that the CARA revealed a sizeable “I think the people who did this were U.S. Activity traits – were identified within each amount of the oil resource is off the coast primarily interested in showing they have province and quantitatively assessed for of Alaska, where some offshore drilling an Arctic capability that few if any other Despite not having ratified the treaty, petroleum potential. already occurs. nations have,” he said. “They could the United States has been plenty busy A world analog database was “About a third of the undiscovered oil actually send a submersible down in mapping the Arctic seabed in developed that includes areas was in the province we call the Arctic polar pack ice, do some work on the preparation. Once it does ratify, the accounting for more than 95 percent of Alaska province,” Gautier said. “This bottom and bring it back safely. nation likely will be prepared to wrap its the world’s known oil and gas resources includes a lot of area of Chukchi Sea and “To me, this is not a reason to outside the United States. part of the Beaufort Sea.” castigate them for trying some illegal See Ownership, next page For each AU, the CARA team Most of the undiscovered natural gas assessed the probability that a significant is thought to be concentrated in the oil or gas accumulation was present. northern part of the western Siberian Evaluation of the AU probability was Basin, Gautier noted. Arctic Gas Potential based on three geologic elements: A major hindrance to Arctic Charge (including source rocks and exploration, particularly in the offshore thermal maturity). areas, has been the near-permanent sea Rocks (including reservoirs, traps ice – an obstacle to both seismic data and seals). collection and exploratory drilling. Timing (including the relative ages However, the ice cap has melted to of migration and trap formation, as well as some degree – whether permanently or preservation). temporarily – which could usher in a Each AU was ranked according to its whole new era for exploration. AU probability. The AUs determined to The Northwest Passage, for example, have less than a 10 percent probability of was open all last summer, according to a significant accumulation (recoverable Ron Macnab, Geological Survey of volumes of a minimum 50 million barrels Canada (retired). He noted that for the of oil and/or oil equivalent natural gas) first time in recorded history, one could were not quantitatively assessed, have sailed a major ship all the way according to Gautier. through the Passage. He noted that in addition to the AU probability, the number of accumulations, A New Approach the size-frequency distribution of accumulations and the relative likelihood Because of the dearth of seismic and of oil versus gas were assessed for each drilling data in much of the Arctic, the AU and combined by means of a Monte CARA program differed from the typical Carlo simulation. USGS resource assessment that relies on “The probabilistic results reflect the discovery process modeling, prospect wide range of uncertainty inherent in delineation and deposit simulation. frontier geological provinces such as Instead, the CARA effort relied on a those of the Arctic,” Gautier said. J probabilistic methodology of geological
OCTOBER 2008 24
76 for natural prolongation and extension “the sediment is so thick in the Arctic Mapping Challenges Ownership of the continental shelf. Basin that the 1 percent of the distance “The fundamental criteria is you have back to the foot of the slope will be way Some of the scientific experts predict from previous page to have a feature that is a natural beyond the North Pole for every country. the Arctic could be ice-free by 2040. For prolongation from your territory – and you “The treaty also says there are limits to now, however there’s plenty of the frozen case in less than the allotted 10 years can demonstrate morphological continuity how far you can go,” he added, noting stuff to pose a challenge for the mapping because it will have completed much of and perhaps geological continuity,” Mayer that the limits are: expeditions. the expensive, necessary fieldwork. said. “Then you can extend your No further than 350 nautical miles “The area is mostly covered by ice In fact, the U.S. Coast Guard continental shelf.” from your coastline. even in the summer,” Mayer said, “so you Icebreaker Healy recently undertook its Mayer noted the treaty defines two 100 nautical miles from the position have to take an icebreaker in to map. We fourth Arctic seafloor mapping excursion ways to do this: of the 2,500-meter depth contour. map with a multi-beam echo sounder, since 2003. In addition to the ongoing “In the northern Chukchi, the 2,500- which is a huge million dollar thing bathymetric work, a separate leg of the Find the foot of the slope – the meter contour plus 100 nautical miles is mounted on the hull of the ship. excursion was implemented as a joint definition provided for foot of slope is much further than the 350-nautical-mile “It uses sound, and breaking ice is a effort with Canada to conduct seismic murky, he said, but it’s a place where line,” Mayer said. “So, on the Chukchi you noisy process,” Mayer said. “So it’s almost work with the goal to measure sediment there’s a maximum change in curvature – can go way beyond 350 nautical miles. an incompatible task of breaking ice, thickness. and you can go out from there 60 nautical “The treaty takes all the ambiguity of which makes noise, and trying to listen for “We’re mapping the Chukchi Cap,” miles. law and mixes it with the ambiguity of sound coming back at the same time. said expedition chief Larry Mayer, who geology,” he said. “The result is all these “Last year there was less ice, which let heads up the Center for Coastal and Go to a place where the sediment ambiguous terms – for example, what us map further north,” Mayer said. “We Ocean Mapping at the University of New thickness is 1 percent of the distance does the ‘foot of the slope’ really mean? found evidence for the foot of the slope Hampshire. “It’s an area that potentially back to the foot of the slope. “It uses all these geological terms and further north than we thought originally. qualifies very well under the U.N. mixes them with legal terms – none of “This has real ramifications for a U.S. Convention of the Law of the Sea Article “In the case of the Arctic,” Mayer said, which has a clear cut definition.” claim, because everything is kind of based on where the foot of the slope is.” Working in this challenging environment tends to be frustrating, expensive and time consuming. Consequently, there’s much incentive for the coastal states to work together and cooperate, according to Macnab. Where science is concerned, it is noteworthy that there’s no sense of competition in this tedious coastal extension effort, according to Mayer. “From a scientific perspective, it’s been a very cooperative effort,” he said. “There’s only one shape of the seafloor and only one sediment thickness, and it’s up to us to determine what it is and then let the diplomats and the lawyers divvy up the boundary issue. The science is separate. “The Law of the Sea Treaty provides a wonderful rule of law for all this to happen in a nice and peaceful way.”
Worth the Effort?
Even so, there are frustrations – particularly on the part of Russia, Canada and Denmark. All three countries assert the extensive subsea Lomonosov Ridge is a natural prolongation of their territories. The Russians say they can lay claim to the Ridge as far, if not further, than the North Pole, Mayer noted. Not so, say the Canadians and Danes, who have been working to establish that the feature is a natural prolongation of the combined Canadian and Greenland margin, according to Macnab. “If that’s the case, they can meet the Russians halfway,” Mayer said, “and this becomes a boundary negotiation as opposed to a geologic discussion.” Macnab concurred. “If you look at the information on hand and apply the provisions of Article 76,” he said, “it makes sense that Russia would move along the Lomonosov Ridge from its direction, and Canada and Denmark would move to meet them somewhere in the middle.” As for the potential prize of vast hydrocarbon finds in the region, Macnab takes a skeptic’s viewpoint. “In the central part of the Arctic Ocean, not enough work has been done to determine if any oil is there and, if so, how much there is,” he said. “Most of the oil in the Arctic Ocean already located is on the continental shelf within the jurisdiction of the coastal states.” This essentially is in line with the recent USGS assessment of undiscovered oil and gas in the Arctic Circle, which suggests most of the undiscovered resources likely are not under the North Pole but closer to shore (see related story, page 22). “There may be oil,” Macnab said, “but the price would have to go further through the roof than now for it to become worthwhile.” J
OCTOBER 2008 25
OCTOBER 2008 26 NAPE prospect hopes to ‘Tally’ success ‘Victoria’s Secret’ Has a History By LOUISE S. DURHAM very substantial clays, so it’s using 3-D seismic acquired by Brayton that EXPLORER Correspondent gravity anomaly, avoided.” confirmed the suspected large deep- Intriguing names for individual prospects which combined to “Apparently the seated Wilcox structure. The well and entire fields are fairly common in the oil suggest the very acid inhibited the encountered gas-bearing Upper Wilcox patch. large structure.” permeability of the sands, but Desenberg noted the hole Think Thunder Horse, Gotcha, Ringo, completion,” ultimately was plugged and abandoned – Pony, Bullwinkle … First Steps Desenberg noted, following considerable head-scratching But as names go, it’s hard to top “and flow rates and among the partners. Victoria’s Secret. To begin, the Tally pressures probably Undaunted, Brayton has since re- Got your attention, right? well encountered dropped dramatically processed the 3-D data and revisited the Relax. The name is a reference to thick sections of with the introduction Tally structure, convinced that “a terrific Victoria County, Texas – but the moniker no Wilcox sands on its of the acid, creating prospect remained,” according to doubt helped lure a number of the Summer way to total depth of tremendous Desenberg. NAPE 2008 viewers who clustered around 23,885 feet. A differential pressure Helping to bolster this opinion is a similar the Brayton Operating Corp. booth at logging run revealed The Koehl #1 well. at the perforations. “re-discovery” field about 30 miles Houston’s George R. Brown Convention a series of well- Photo courtesy of Brayton Operating Corp. “Not surprisingly, northeast of the Tally Prospect, where Tri-C Center, where the prospect was on display. developed Upper Wilcox sands. it’s reported that the casing collapsed Resources successfully offset an old Officially dubbed the Tally Prospect, this Cores and additional logs were opposite the perforations,” he said. Conoco discovery drilled in 1986. Since the is one of the now-familiar examples of the evaluated, and three successful formation Alas, the best portion of the productive “re-discovery” in 2005 in the former one- potential big finds lurking in places that tests confirmed the interval from about interval was lost. A shallower part of the well Brushy Creek field, the field has been have been subjected to long-ago drilling 14,100 feet to 14,600 feet likely would Wilcox section was then sand-fraced and actively developed, producing over 32 Bcfg that failed to pan out as the operators produce gas/condensate. flowed gas, but the non-commercial well and 580,000 barrels of condensate thus far. envisioned. After reaching total depth in 1964, the was soon plugged and abandoned. On the Tally structure, Brayton is going Today, readily available sophisticated company elected to plug back to the Upper full speed ahead with plans to offset seismic technology, hi-tech fracturing Wilcox “pay sands.” Try,Try Again Amerada’s original apparent major techniques and other advances can be real When the company perforated the lower discovery, the R.F. Tally #1. game changers when picking over these portion of the apparent pay section (14,370- In 1980, an Amerada team twinned the The planned well is slated to kick off late old areas, often laying bare the secrets that foot sand), the well flowed dry gas at a rate R.F. Tally #1, drilling 250 feet northeast of this year or in 2009’s first quarter. prevented earlier successes. of 9,000 Mcfg/d – likely convincing the original well. Armed only with 2-D Desenberg emphasized that fracture The Tally story began late in 1963, when Amerada that it had a significant discovery. seismic data and one log for correlation, stimulation technology has greatly improved Amerada spudded the R.F. Tally #1 well, But disaster was nigh once the company they failed to find the 14,370-foot sand that since the completion of the previous Tally which was an ultra deep Wilcox test, seemingly determined that the well was caused the collapse in the initial well. wells, noting they won’t be using acid owing according to AAPG member David tight and required some form of stimulation. Today, 3-D data and correlations show to the specific clay content in the Wilcox Desenberg, president of the Corpus Christi, “The well stimulation business was in its the second well faulted out the target Wilcox sands. Texas-based Brayton. infancy in 1964, so options were limited,” sand, as the geologists had inadvertently Guarantees are essentially non-existent “The well was designed to test an Desenberg said. “Amerada chose a form of moved the well toward the fault given their in this business, but if all goes according to extremely large faulted, four-way Wilcox acid fracturing, apparently without regard to sparse database. plan, the company is eyeing total prospect closure,” Desenberg said. the clay content of the Wilcox – today, it’s In January 2000, a partnership that reserves in the range of 206 Bcf of natural “The test was predicated on early 2-D generally known that acid tends to destroy included Brayton drilled the Koehl #1 about gas plus liquids, Desenberg noted, with as data, perhaps 100 percent, and probably a permeability in Wilcox sands by swelling the one mile northeast of the Amerada wells many as 10 wells expected to go down. J
OCTOBER 2008 27
OCTOBER 2008 28 Patience, appetite for risk required Independents Find Africa Success Ian Cloke, Uganda exploration manager at Tullow South Africa Ltd., will present a paper at the upcoming AAPG International Conference and Exhibition on “African Opportunities Past, Present and Future: An Independent Oil Company’s Perspective.” Cloke’s paper will be presented at 9:20 a.m. Monday, Oct. 27, as the final talk in a four-paper plenary session titled “African Energy, Global Impact.” Other talks in the session are: “Evolution of the Margins Around Continental Break Up: Insights From the close to export pipelines and in frontier South Atlantic Margin.” areas such as Uganda,” Cloke added, “Interplay of Basement Tectonics, Salt noting that major oil companies dominated Tectonics and Sedimentation in the Kwanza this period of activity early on. Basin, Angola.” “Learning by the Bit: Fifteen Years of Just Do It West Africa Deepwater Exploration, Development and Production.” It’s a different scene today. Independents are seemingly all over the By LOUISE S. DURHAM Photo courtesy of Kosmos Energy place, often successfully playing areas EXPLORER Correspondent previously rejected by the major When it comes to international E&P Dallas-based Kosmos Energy, operator of the Songa Saturn DST Mah-2 (above), is just companies. action, Africa is a Big Deal these days. one of many independents finding success in Africa. This was the case with the 2007 In fact, a third of the world’s hydrocarbon were made onshore in the mid-1950s in The following exploration phase discovery of the huge Jubilee Field (nee discoveries since 2000 have occurred in Algeria and Libya,” he noted. commenced in the mid-1990s when Mahogany) in Cretaceous-age turbidites in Africa, according to Ian Cloke, Uganda “Contemporaneously, oil was discovered improved drilling technology enabled the Ghana. exploration manager at Tullow South Africa onshore in Nigeria, Gabon, Congo, operators to go after prospects in water The principal partners at Jubilee are (Pty) Ltd. in Cape Town, South Africa. Cameroon and Angola, opening several depths exceeding 300 meters. Tullow, Kosmos Energy and Anadarko, with And perhaps a bit surprising, the new play fairways.” “This phase continues through to the Sabre Oil & Gas and the EO Group also companies involved in the Big Deal are not The oil crisis of the 1970s in combo with present day,” Cloke said. “The combination participating. Kosmos was the operator on always the Big Majors. technology advancements in exploration of excellent quality 3-D seismic data and the Mahogany #1 discovery well. Can you say “independents?” kicked off the next phase of exploratory AVO has resulted in success rates in “The trend we found at Jubilee last year, “Hydrocarbon exploration in Africa dates activity. excess of 50 percent as discoveries were all the big companies had rejected it, saying back to the earliest part of the 20th century, The remote location of some of the made in the Miocene and Oligocene-age it’s too risky, no source rock,” Cloke said. when field geologists mapped the continent resulting discoveries in places such as deepwater confined channel systems of “We put it together and just went after it.” and identified numerous oil seeps indicating Chad, Ethiopia, Sudan and others caused Mauritania, Nigeria, Equatorial Guinea, The payoff could be huge given that working hydrocarbon systems,” Cloke said. them to be stranded until they could be Angola and the Nile Delta of Egypt. “The first major oil and gas discoveries connected to export routes via pipelines. “Onshore exploration continued apace See Independents, page 30
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OCTOBER 2008 30 Cape Town Ready To Host AAPG ICE AAPG’s spotlight turns Opportunities.” to South Africa this month The Leopard – for a historic conference “Advances in Geoscience that boasts a premiere and Allied Disciplines.” technical program that The Black Rhino – focuses on the top topics “Next Generation Tools of today’s industry. and Technologies.” The AAPG International Conference The Lion King – “The New Business and Exhibition will be held Oct. 26-29 at of Energy.” the Cape Town International Convention Cape Buffalo – “Gondwana and Centre – the Association’s first ICE ever in Pangean Petroleum Systems: Exploration, South Africa. Development and Production – Emerging The theme is “African Energy, Global Plays, Lessons and Analogs.” Impact,” and organizers have worked for In addition, the Cape Town program more than two years compiling a technical offers: program that not only offers the latest in A colorful and exciting opening African geology and exploration but also a session, featuring a live performance of variety of sessions dealing with cutting music from South Africa, a talk from edge technology and science from Buyelwa Sonjica, the minister of Minerals around the world. and Energy for South Africa, and a “While there is a large part of the keynote address by Duncan Clarke, technical program that uses examples chairman and CEO of Global Pacific & from the African oil and gas experience to Partners. bring lessons of global importance, this A plenary session dealing with conference also looks at the larger issues African energy. of worldwide energy resources, the Four special forums dealing with the technology employed to image and Lusi mud volcano; global climate change extract them, the people it takes to (from an African perspective); the role of successfully commercialize those small and independent companies in reserves and how to minimize the impact Africa’s future; and the geosciences work on the environment in the process,” said force of the future. Sipho Mkhize, conference general chair. An African deepwater core poster That program also includes a large session. number of short courses, special forums, A featured speaker luncheon featured luncheon speakers and offering the talk “The Four-Billion-Year geological trips showcasing the best of Existence of Life – Africa’s Role in African geology. Understanding This Remarkable Story,” In keeping with the South Africa theme, given by Bruce Rubidge (see related this year’s 70-plus technical sessions are story, page 38). built around “the big five” symbols of The AAPG Distinguished Lecturer Africa’s animal kingdom. Luncheon, featuring Lynn N. Hughes, Those themes are: speaking on “Dilemmas in Trust.” The Elephant – “Deepwater: Ancient Complete information can be found Analogues, Current Technologies, Future online at www.aapg.org/capetown/. J
appetite, Africa will be the Independents domain of small and mid- size independents who from page 28 most of Africa will depend on for establishing new recoverable resources in the Jubilee Field petroleum provinces,” are estimated to be more than 500 MMbo, Maxted said. with the ultimate upside pegged at perhaps “We believe Ghana will 1.8 billion barrels. be a multi-billion barrel When exploring this part of the world petroleum province,” he patience truly is a virtue – and it’s a luxury Maxted continued, “and we better afforded by the independents than believe others are waiting the Big Guys. to be found, just requiring the technology Cloke emphasized it’s not unusual for skills and risk appetite. negotiations to drag on for maybe five years “By definition, the plays we’re dealing or even longer before a project gets drilled. with are high risk in the sense the source Besides the need to be patient, one must rocks as well as the reservoir rocks are not be nimble as well. always understood and the traps tend to be The Jubilee discovery in greater than subtle – not large structures, most of which 1,500 meters of water had to be appraised have been drilled-out in Africa,” he said. within two months. Yet the participants were “They’re more stratigraphic plays and told there was a three-year wait for a rig. combination structural/stratigraphic plays, “We went out and got a rig, just like that,” and Ghana is an example of that.” Cloke said. “That’s the ability of the Maxted, the Michel T. Halbouty Lecturer independents to move quickly. for the 2004 AAPG Annual Convention in “You must be patient working here, but at Dallas, emphasized that it’s the limited the same time if things start moving fast, understanding of source and reservoirs and you’ve got to move – you’ve got to be able to the focus on high-risk traps that makes sign the deal tomorrow,” he said. “You can’t these areas less attractive to the majors take umpteen months to review a deal when looking for simple large prospects in proven it comes up.” areas that are few and far between. It appears likely there’s a raft of future They’re expensive to access and deals just waiting to happen. declining in numbers as places such as “We’ve barely scratched the surface of Angola and Nigeria begin to get drilled up. the continent, which is pretty well Kosmos has an intense focus on West unmapped,” Cloke said. “If you just look at Africa, where it’s deliberately pursuing subtle the areas rejected by major companies, stratigraphic/structural traps in the Upper there are incredible opportunities.” Cretaceous and early Tertiary. AAPG member Brian Maxted, chief “That’s where we believe in West Africa operating officer at Dallas-based Kosmos most of the remaining potential lies to be Energy, agrees. found outside of the proven areas,” Maxted “Unless the majors change their risk said. J
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OCTOBER 2008 32 36 to be honored at Denver meeting Downey Named Powers Medalist
By SUSIE MOORE Ë John G. Kaldi, Australian School of Houston. EXPLORER Staff Writer Petroleum, Adelaide, Australia. Ë Mike J. Lakin, Envoi, London, Marlan W. Downey, who had led two Ë J. Michael Party, Wagner & Brown, England. major international oil companies, served Midland, Texas. Ë Dalton F. Lockman, Plains as an administrator and professor in Ë Peter A. Ziegler, Petroleum Exploration & Production, Bakersfield, academe and is an AAPG past Exploration Consulting Services, Calif. president, has been named the recipient Binningen, Switzerland. Ë Kenneth M. Mallon, consultant, of the Sidney Powers Award, the Houston. Association’s highest honor. Outstanding Explorer Award Ë Randi S. Martinsen, University of Downey had a 30-year career with Presented to members in recognition Wyoming, Laramie, Wyo. Shell Oil in management and research, Downey Thomasson of distinguished and outstanding Ë Robert C. Mummery, Almandine retiring as president of Pecten (Shell) achievement in exploration for petroleum Resources, Calgary, Canada. International in 1987. After a brief AAPG awards, nominated by the or mineral resources, with an intended Ë John E. Ritter, Occidental retirement, during which he founded Advisory Council and approved by the emphasis on recent discovery. Petroleum, Houston. Roxanna Oil, he joined Atlantic Richfield Executive Committee, are presented Ë Michael S. Johnson, consultant, Ë Stephen L. Shaw, Firstview and served for seven years as president annually to recognize individuals for Denver, honored for his achievement in Resources, Midland, Texas. of Arco International. service to the profession, the science, originating the concept that led to the Ë Jack H. West, consultant, After retiring from Arco in 1996, he the Association and the public. Parshall Field discovery in North Dakota Bakersfield, Calif. became Bartell Professor of Geoscience Downey and his fellow honorees will – and opening the current much at the University of Oklahoma, and chief be recognized at the opening session of publicized and highly successful Bakken Grover E. Murray scientist at the Sarkeys Energy Center. the 2009 AAPG Annual Convention, Shale play. Distinguished Educator Award He stepped down in 2002 and remains which will be held June 7-10 in Denver. Presented for distinguished and CEO of Roxanna. Interviews with Downey and Robert R. Berg outstanding contributions to geological He was awarded AAPG Honorary Thomasson will be published in a future Outstanding Research Award education, both at the university level Membership in 2007 and was the EXPLORER, and biographies and AAPG’s newest award, presented to and toward education of the general recipient of the Robert H. Dott Sr. citations of all award winners will be honor a singular achievement in public. Memorial Award in 2003 and served as included in a future BULLETIN. petroleum geoscience research. Ë J. Frederick Read, Virginia AAPG president in 2000-01. Those award winners approved by the Ë Bradford E. Prather, Shell Polytechnic Institute, Blacksburg, Va. Downey also is an AAPG Foundation Executive Committee and who will be International, Houston, honored for his Ë Finn Surlyk, University of Trustee Associate as well as Member of honored along with Downey and work in deepwater siliciclastic systems, Copenhagen, Copenhagen, Denmark. the Foundation Corporation and has Thomasson in Denver are: furthering our understanding of slope been honored as “A Living Legend in the and base of slope systems. Special Award Oil and Gas Business” by the Houston Honorary Member Award Presented to individuals and Geological Society. Presented to members who have Distinguished Service Award organizations whose area of work may Joining him at the top of the awardees distinguished themselves by their Presented to those who have not qualify for one of the existing awards, list is M. Ray Thomasson, with accomplishments and through their distinguished themselves in singular and but is worthy of Association recognition. Thomasson Partner Associates in Denver service to the profession of petroleum beneficial long-term service to AAPG. Ë Alexei E. Kontorovich, Institute of and a past AAPG president, who is this geology and to AAPG. Ë Alistair R. Brown, consultant, Allen, Petroleum Geology and Geophysiscs, year’s recipient of the Michel T. Halbouty Ë Elizabeth B. Campen, Campen Texas. Outstanding Leadership Award. Consultants, Billings, Mont. Ë Larry L. Jones, Spartan Petroleum, See Awards, page 34
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Great Australian Bight Frontier Basin Project
PSTM Reprocessing 21,290 km of 2D seismic data with gathers and AVO Approximately 34,000 line km of new aerogravity & aeromagnetic data Satellite seep data Integrated interpretation report available July 2009
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Bathymetric image courtesy of Geoscience Australia, copyright Commonweath of Australia
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The Great Australian Bight is likely to be included in the Australian Government’s 2009 acreage release, to be announced in April 2009. Geoscience Australia have recently published results from a geological sampling study, with promising evidence for a world class Cretaceous source rock in the Bight Basin.
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OCTOBER 2008 34
Terrain Map of the United States Awards mounted prominently in south Texas Denver Call for Papers from page 32 schools. Time is running out on the call for Pioneer Award Resource Development and Novosibirsk, Russia. One of the most Presented to long-standing members papers for the next AAPG Annual Reservoir Characterization. influential, honored and recognized who have contributed to the Association Convention and Exhibition, which will be Tight Gas. geologists living in Russia, Kontorovich and who have made meaningful held June 7-10 in Denver. Unconventional Reservoirs. has had a profound impact on the contributions to the science of geology. This year’s theme is “Image the Past Astrogeology. mapping and assessment of oil and gas Ë , consultant, – Imagine the Future.” James D. Lowell Alternative and Renewable Energy. reserves in most Russian basins. Denver. A 52-year member of AAPG, The deadline for submitting abstracts Petroleum Geology and Public Ë , Baku, Lowell has specialized as an expert in is Nov. 4. Abstracts can be submitted Akif Ali Narimanov Policy. Azerbaijan. structural geology on domestic and online. Responsible Development, international projects that include the Organizers are seeking papers that Sustainability, Climate Science. North Sea, South America, Southeast fit into 15 general topics: Public Service Award Geologic Interpretation Case Presented to recognize contributions Asia, Trinidad, Somalia, the Middle East, Global Deepwater E&P. Histories of Geophysical Data. of AAPG members to public affairs – Europe and Alaska. Hydrocarbon Systems and Basin Student Sessions (AAPG and and intended to encourage such Analysis (seven sessions). SEPM). activities. Siliciclastic Systems. Wallace E. Pratt Memorial Award For more information on the technical Ë , Suemar Presented to honor and reward the Carbonate Systems. Owen R. Hopkins program and the meeting in general go Exploration, Corpus Christi, Texas, for author(s) of the best AAPG BULLETIN Structural Geology. online to www.aapg.org/denver. promoting geosciences in the public article published each calendar year. Exploration and New Plays. Don’t miss the Nov. 4 deadline. J and at schools, including his efforts to Ë Joe Cartwright, Mads Huuse and have a U.S. Geological Survey Time and Andrew Aplin, for “Seal Bypass Systems,” which appeared in the August 2007 BULLETIN. Cartwright and Huuse are with 3DLab, School of Earth, Ocean and Planetary Sciences, Cardiff University, Cardiff, United Kingdom, and Aplin is with NRG, School of Civil Engineering and Geosciences, University of Newcastle, Newcastle- Upon-Tyne, United Kingdom.
Robert H. Dott Sr. Memorial Award Presented to honor and reward the author/editor of the best special publication dealing with geology published by the Association. Ë Tor H. Nilsen, Roger D. Shew, Gary S. Steffens and Joseph R.J. Studlick, for Studies 56, Atlas of Deepwater Outcrops. The late Tor Nilsen was a consultant, former U.S. Geological Survey geologist and a legendary instructor for AAPG; Shew is with the University of North Carolina at Wilmington and consulting geologist, Wilmington, N.C.; Steffens is with Shell International E&P Inc., Houston; and Studlick is with Maersk Oil America Inc., Houston.
J.C. “Cam” Sproule Memorial Award Presented to recognize and reward younger authors of papers applicable to petroleum geology. Ë David R. Pyles, for the paper “Multiscale Stratigraphic Analysis of a Structurally Confined Submarine Fan: Carboniferous Ross Sandstone, Ireland.” Pyles is with the Chevron Center of Research Excellence, Department of Geology and Geological Engineering, Colorado School of Mines, Golden, Colo.
George C. Matson Award Presented to honor and reward the best oral presentation at the AAPG Annual Convention in San Antonio. Ë Mark Knackstedt, for the paper “Carbonate Petrophysical Parameters Derived from 3-D Images.” Knackstedt is with the Australian National University, Canberra, Australia. Knackstedt’s co-authors are Mahyar Madadi, Christoph Arns, Gregor Baechle and Gregor Eberli. The paper was part of the session on “New Directions in Carbonate Reservoir Characterization.”
Jules Braunstein Memorial Award Presented to honor and reward the best poster presentation at the 2008 AAPG Annual Convention in San Antonio. Ë Tim Dooley, Michael Hudec and Martin Jackson, for the poster “Dismembered Sutures Formed During Asymmetric Salt-Sheet Collision.” All are with Jackson School of Geosciences at the University of Texas at Austin. J
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OCTOBER 2008 38 Humans only part of the story Africa Ideal to Study Life Origins Karoo. He credits much of his enthusiasm By BARRY FRIEDMAN Bruce Rubidge will present his talk, “The Four-Billion-Year EXPLORER Correspondent and passion for this study to his Professor Bruce Rubidge, a man who Existence of Life – Africa’s Role in Understanding This grandfather. often thinks about time in terms of eons Remarkable Story,” at this year’s Featured Speaker Luncheon at “My grandfather (Sidney Rubidge), rather than 24-hour news cycles, has a the AAPG International Conference and Exhibition in Cape Town. who was a keen observer of nature, problem: He needs to discuss the 4.6- The luncheon is set for Monday, Oct. 27, at the Cape Town developed a great interest in fossils that billion-year history of the origins of earth International Convention Centre. resulted in him amassing a large and life – and he has to do it over lunch. Rubidge is a professor with the Bernard Price Institute for collection of fossil ‘reptiles’ collected from “Yes, I have 25 minutes,” he says, Palaeontological Research at the University of the Witwatersrand the rocks in the vicinity of his farm during laughing about preparing for his luncheon in Johannesburg, South Africa. the 1930s,” he said. talk at the upcoming AAPG International Information can be found online at www.aapg.org/capetown/ Calling his co-author, McCarthy, “the Conference and Exhibition in Cape Town. Rubridge luncheons.cfm. most versatile and knowledgeable His talk is called “The Four-Billion-Year geologist I know, who always seems to Existence of Life – Africa’s Role in Africa’s role, generally, and South Africa’s than two thirds of the total surface area of know everything,” Rubidge says the book Understanding This Remarkable Story,” role, specifically. South Africa, preserve a remarkable was written for a simple reason: the two and Rubidge says he already can feel “From our very ancient fossil record it history of the origin and diversification of simply love rocks. your eyes glazing over. is well known that Africa is the place of various reptile groups (including “He and I shared a passion to write a Don’t worry. origin of humans,” Rubidge says, “and mammals, dinosaurs and turtles) from story on the remarkably diverse South “One cannot get too serious in a time much of this story of human origins is 180-300 million years ago.” African rock and fossil record which like this – people will want something based on three-million-year-old or More fascinating to Rubidge is that would have appeal to a general light-hearted and fun.” younger fossils discovered in South Africa South Africa is “ ... the only single country readership.” Obviously, he’ll have to skim over a few by noted paleontologists such as Robert which records such an extended history Saying that while bookstores in South billion years or so – but that shouldn’t be a Broom, Raymond Dart, Phillip Tobias and of ‘reptile’ diversification.” Specifically, Africa had offerings on insects, birds, problem for Rubidge. Bob Brain.” he notes how the Karoo Region is noted reptiles and plants, “there was nothing on “I will try to present a very brief and for its rich record of therapsids, the most geology. interesting overview, do the history of life The Perfect Setting distant ancestors of mammals and “We set out to write a book that people from a Southern African perspective, look ultimately, humans. could take in their car on journeys around at some of the exciting new fossil But Rubidge says that’s just one “South Africa has the most primitive the country, which they could read at discoveries from Africa, and concentrate aspect of the story. therapsids – and then through the Karoo night while in bed, but which would on important evolutionary and biodiversity “While the human story is one which succession there are progressively more also be useful for university issues in the ongoing development of tends to make the headlines, it is only a advanced forms – with mammals in the undergraduate earth and life-science life,” he said. very small part of the development of life youngest rocks on top,” he said. “By courses.” Rubidge, who along with Terence on earth,” he said. “Because South Africa traveling through the Karoo and viewing And apparently for anyone with a few McCarthy, professor of mineral has a geological history that extends back its fossils one can thus trace the ancestry minutes to spare during lunch. J geochemistry at Witwatersrand, co-wrote 3,600 million years, and has younger of mammals.” The Story of Earth and Life, a Southern rocks of all different ages that bear fossils, To read more about African Perspective on a 4.6-Billion-Year it is an ideal country to study the A Love For Rocks Journey, believes that one cannot fully development of life. this subject, visit the understand the earth’s pedigree without “In particular,” he added, “the rocks of Rubidge grew up on a farm in the town AAPG Web site. first understanding the contribution of the Karoo Supergroup, which cover more of Graaff-Reinet, which is situated in the Excellence That Runs Deep SCA - The Upstream Petroleum Experts Global Projects & Studies Consultancy SCA’s Training Solutions for the Petroleum Industry October, 2008 SCA’s seasoned staff of professionals can conduct 13 - 17 Geopressure: Prediction, Analysis and Risk Assessment for E & P Houston, Texas global projects, from exploring for new discoveries 20 - 24 Applied Subsurface Geological Mapping Dallas, Texas to determining your next development well location, 27 - 31 Principles of 3-D Seismic Interpretation Kuala Lumpur, utilizing our years of experience in nearly every Malaysia geologic basin, tectonic setting and depositional November, 2008 3 - 5 Basics of the Petroleum Industry Houston, Texas environment around the world. 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OCTOBER 2008 40
Cape Town Plans to ‘Give Back’
By VERN STEFANIC groups will benefit that being a good corporate citizen EXPLORER Managing Editor from AAPG’s (means) going beyond the An “Educator and Learners” To many, attending a conference is presence in Cape organization’s mandate of just doing program, where 100 teachers and about mainly a chance to learn, to network, to Town by receiving your business. It means looking for 200 students from in and around Cape experience new cultures, to grow as a surplus food and opportunities to strategically develop Town have been invited to attend six professional. materials, while other programs and help communities where information sessions that will include a In Cape Town, attending a groups will have the you operate.” tour of the exhibition hall. conference won’t be just about you. opportunity to sell It means, she continued, All will receive packs with learning Organizers of the upcoming AAPG handmade items on “intervention outside corporate walls and teaching resources. International Conference and Exhibition the exhibition floor. and ensuring sustainability of “South Africa children know very little are including an ambitious “Social Mdlalose “It is the right thing communities, society and the about geology and what geologists do,” Responsibility” program that reflects to do,” said Njabulo environment.” she said. “This will be an opportunity for AAPG’s “strong commitment to social (Mabee) Mdlalose, special projects To accomplish that mission in Cape them to get information and to interact responsibility, both globally and in South coordinator for Petroleum Agency SA Town, Mdlalose’s committee (five with geologists young and old.” Africa.” and chair of the Social Responsibility members) have worked since January Through the initiative, various local Committee for the conference. “I believe to organize an initiative that includes: Several groups from Cape Town and the surrounding region will have booths in the exhibits hall to show and sell their handmade jewelry, handicrafts, cultural artifacts and other products; all groups will be from “poverty stricken or semi-urban areas,” Mdlalose said.
Clean uneaten food from various activities will be distributed to locations that provide meals for needy groups, such as centers for the homeless and orphanages.
Bags, pens, exhibitor handouts and other goods that delegates do not need or take will be given to schools in underprivileged areas.
A recycling program will be in place for shipping material.
A special forum on “Global Climate Change as Viewed From an African Perspective,” chaired by past AAPG vice president-Sections John Armentrout and Jeffrey Levine, will be held Tuesday night (Oct. 28). The forum is open to the public and will include time for questions and comments.
Helping others is not a new concept for Mdlalose. In addition to her role as Petroleum Agency SA’s special projects coordinator she also is responsible for her company’s own Social Responsibility program. She also manages and administers a trust that provides scholarships and money to various organizations. “When I grew up there were no opportunities of this kind,” she said. “Now I look for ways to create these opportunities for young people.” The point, she said, is “to make a difference in their lives.” Who knew that by attending an Discover the New Fugro Gravity & Magnetic Services. AAPG meeting you’d be helping to do just that? J Now, the full spectrum of potential field products and services is available from a single source: Fugro Gravity & Magnetic Services. Fugro Gravity & Magnetic Services has more than 50 years of land, marine and airborne oil and gas exploration experience, providing geologic solutions, enhancing seismic data NewA new Hedberg Hedberg conference Set has and improving drilling efficiency. And, all delivered by 600 professionals around the world. For cost- been added to the 2009 AAPG slate effective exploration risk reduction, depend on Fugro Gravity & Magnetic Services, a whole new center of geoscience offerings. “Variations in Fluvial-Deltaic and of gravity and magnetic services. Coastal Reservoirs Deposited in Tropical Environments” will be held April 29-May 2 in Jakarta, Indonesia. Conveners are Robert Shoup, Joe Joe Lambiase, Andrew Cullen and Chuck Caughey. A call for papers has been !CQUISITION s 0ROCESSING s )NTERPRETATION s 3OFTWARE s .ON %XCLUSIVE $ATA issued, with a Nov. 7 deadline. For more information go online to www.aapg.org/education/hedberg /index.cfm, or contact Debbi Boonstra at [email protected]. Gravity Inspired. Magnetically Inclined. www.fugro-gravmag.com/solutions
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China Study: Detecting Fractures
(The Geophysical Corner is a was implemented resulted in high- regular column in the EXPLORER, resolution C-wave images. An edited by Bob A. Hardage, senior important byproduct of this workflow research scientist at the Bureau of was information related to fracture Economic Geology, the University of orientation and to fracture intensity. Texas at Austin. This month’s article is The first step in the data the first of a two-part series: A full- processing was to rotate horizontal wave case study detecting fractures components from their recorded field with 3D3C seismic data in the orientations to their source-receiver XinChang Field of China’s Sichuan azimuths, or “radial,” directions. Province.) If seismic data are azimuthally isotropic, all C-wave reflection energy By PETER STEWART would be concentrated on the radial JOHNTINNIN component, and data acquired by the JAMES HALLIN transverse sensor could be and JIM GRANATH discarded. However, after rotating the XinChang data to radial/transverse This two-part series describes how - Sinopec’s local operating company, Figure 1 – Polarized shear wave: parallel and orthogonal to fractures. coordinates, a significant amount of Southwest Petroleum Branch (SWPB), C-wave energy remained on the utilized full-wave seismic data to transverse component. improve production from a fractured This data behavior confirmed the tight-gas reservoir in XinChang Field, presence of shear-wave splitting, Sichuan Province, China. which occurs when a shear wave This month we detail the data- encounters an azimuthally anisotropic acquisition technology and the data- layer such as one of the XinChang processing workflow that produced fractured reservoir units. high-resolution images and yielded In S-wave splitting, the C-wave fracture information that correlated polarizes into two new waves, a with well production. phenomenon known as Historically, this region has been a “birefringence.” One of the new split prolific gas producer – shallow waves is polarized parallel to, and the prospects were depleted early, and second orthogonal to, the fracture the reservoirs currently targeted are orientation. now at the base of a terrestrial The velocities of the two waves sequence some 20,000 feet thick. differ – the faster wave being These deeper Triassic reservoirs polarized parallel to the fractures, and are low porosity (less than 4 percent) the slower wave polarized orthogonal – but specific areas within the to the fractures (figure 1). reservoir can be highly fractured. In addition, each of the new waves Production has been declining, splits again when it encounters a new and the region now needs an injection anisotropic layer, resulting in a of new technology to sustain complicated mix of waves arriving at production. each sensor. Shear-wave splitting can yield *** valuable information regarding Figure 2 – Azimuth-sector gathers displaying characteristic signatures for radial and Legacy seismic data correlate transverse components. poorly with existing wells, and the continued on next page quality of existing seismic data is insufficient to define reservoir targets. Attention was focused on implementing a seismic program that would allow the fracture network to be understood so future drilling locations could be determined. In this effort, a task force of ION and SWPB geoscientists found that the region produces high levels of coherent converted-shear (C-wave) energy. The team concluded that C-waves had the potential of providing stratigraphic, lithologic and fracture detail that would be crucial for understanding the reservoir and for optimizing well placements and reducing drilling risk. The design team recommended a data-acquisition program involving dense spatial sampling, full offset and azimuth distributions, and the adoption of 3C digital sensors. With the design approved, a new survey was acquired in 2004 using an I/O System Four® recording system and VectorSeis® full-wave 3C sensors. It became apparent shortly after data-acquisition began that the new P-wave data were high quality, and that bandwidth and signal-to-noise ratios were a step change improvement over legacy seismic data. In addition, high-quality, full-azimuth C-wave data were also recorded.
***
The data-processing workflow that Figure 3 – Converted-wave images before (a) and after (b) layer-stripping anisotropic corrections.
OCTOBER 2008 43 continued from previous page related to travel-time differences between fast and slow shear-waves, MANAGING RISKS AND and the cross-correlation in step two fractures; however, unless addressed yielded time-difference information STRATEGIC DECISIONS correctly, wave-splitting reduces the that was used to infer fracture bandwidth of stacked or migrated intensity. in Petroleum Exploration & Production C-wave images. Thus, our data- processing workflow was modified to *** Join our three-day executive seminar to improve your risk capitalize on the shear-splitting that management and strategic decision making skills. For 18 years, was detected. Next month’s article will detail the After sensor rotation to post-processing and interpretation this seminar has provided participants with a “hands-on” radial/transverse coordinates, the workflow that led to 19 new drilling approach to the most modern techniques in risk management main components of the workflow locations. and strategic decision making for all aspects of petroleum included surface wave attenuation, Three of these sites have been resolution of shear-wave statics, drilled and completed as gas wells, exploration and production. surface-consistent signal processing and one of these wells is now the most MICHAEL R. WALLS, PH.D. – INSTRUCTOR and Q compensation. These steps productive well in the area. J were performed independently on the OCTOBER 20–22, 2008 radial and transverse components. Editor’s note: Peter Stewart and COLORADO SCHOOL OF MINES Next, the data for each component AAPG members John Tinnin, James GOLDEN, COLORADO were sub-divided into 36 10-degree, Hallin and Jim Granath are all with azimuth sectors. Each azimuth sector ION Geophysical/GX Technology. www.mines.edu/outreach/cont_ed was migrated separately via a prestack C-wave time migration. This migration step required a velocity model for both P and S wavefields. Because it is difficult to derive shear-wave velocities from converted-wave data, we developed a novel scheme in which P and S velocity fields were re-parameterized into new variables that could be estimated from the C-wave data. Following migration, each sector volume was subjected to residual move-out correction, muting and stacking. The azimuth volumes were then re-assembled into azimuth-sector gathers for each migration bin. For any migrated output location, a C-wave reflection has a characteristic signature on the radial and transverse components as a result of interference patterns between the polarized fast and slow waves. Typically, radial data have a sinusoidal type of behavior with azimuth, while transverse data exhibit polarity reversals every 90 degrees of azimuth (figure 2, previous page). If these two C-wave responses were stacked as is, the result would be a low-resolution image (figure 3a, previous page).
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The most important step in the data processing was our layer-stripping anisotropic correction. This procedure removed the effects of shear-wave spitting at each anisotropic boundary by simulating the effect of an isotropic medium. A single anisotropic layer was stripped to form an isotropic layer in the following manner: Step 1 – Knowing that azimuths corresponding to polarity reversals observed on the transverse component define fracture orientation, these azimuth angles were used to rotate the data from radial/transverse to fast/slow directions. Step 2 – A cross-correlation between fast and slow data determined the time lag between these two wave modes; a static correction was then done to time align slow and fast data. Step 3 – An additional rotation back to radial and transverse coordinates concentrated all of the energy onto the radial component and produced azimuthally isotropic data. These adjusted data were stacked to form a high-resolution C-wave image (figure 3b, previous page). An important byproduct of step one is fracture orientation. For any particular layer, maps of fracture orientation throughout the entire data volume were generated using the azimuth angles determined in this data-processing step. Second, the amount of fracturing is
OCTOBER 2008 44
geoCVD Covers a Lot of Ground By DAVID CURTISS GEO-DC Director There may be no peer-reviewed study of this phenomenon, but I submit that cobblers do good business in election years. Consider, after all, the millions of miles both candidates and supporters walk during the course of a campaign. On this journey they reach out to people, listen to them, try to understand their problems and perspectives and then tell them how they would respond if elected to office. It’s an educational process that goes both ways. Nearly 20 AAPG members had a similar experience during the first-ever Geosciences Congressional Visits Day (geoCVD), held Sept. 8-10. The Geosciences Working Group, led by the American Geological Institute and composed of its member societies with offices in Washington, D.C., began planning this event in early 2008. Our goal The contingent of AAPG participants gathers during Geosciences Congressional Visits Day in Washington, D.C. was to create an event that educated lawmakers and staff of the importance of gas R&D. met with the Department of Energy fossil the five-week August recess, where they geosciences in every day life. AAPG has long-maintained the energy program and staff from the House had spent a lot of time at home talking to The response was tremendous, with importance of responsibly developing the Energy and Minerals Subcommittee. That constituents, and energy was at the more than 60 geoscientists flying in from nation’s oil and gas resources on behalf of afternoon we traveled to the American forefront of everyone’s mind. around the country. its citizens. Similarly, AAPG has a long Geophysical Union headquarters to meet The purpose of these meetings was to For AAPG members the event began on history of supporting federal R&D. In fact, with the other societies and prepare for our talk about access and R&D, but also to Monday afternoon (Sept. 8), with a kick-off AAPG President Scott Tinker recently Hill visits on Wednesday. listen and answer questions. Our goal was briefing led by Deborah Sacrey, chair of communicated with policymakers the need to build relationships with policy makers the Washington Advocacy Group, a for a dramatic increase in federal oil and *** and their staff to become trusted sources subcommittee of the DPA Government gas R&D spending, both for new of information, not just through GEO-DC, Affairs Committee. At the briefing we technologies – especially for Wednesday morning we headed to but also as individual citizens. focused on the key issues we would unconventional resources – and to Capitol Hill, where each participant had a The diverse expertise and experience discuss with policymakers in the context of rejuvenate the nation’s universities and scheduled meeting with their of our group represents a significant brain- the current energy situation: access to colleges that are training the next- representatives and/or staff. trust: federal lands for exploration and generation work force. We had a receptive audience – production, and increased federal oil and On Tuesday morning, the AAPG group lawmakers and staff had just returned from See CVD, page 46
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