DOCSLIB.ORG

Analytical Questions for Shale Gas and Tight Oil Development in the U.S

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Analytical Questions for Shale Gas and Tight Oil Development in the U.S Status and outlook for shale gas and tight oil development in the U.S. For Consumer Energy Alliance February 21, 2013 | Washington, D.C. By Adam Sieminski, Administrator U.S. Energy Information Administration Independent Statistics & Analysis www.eia.gov Annual Energy Outlook 2013 projections to 2040 • Growth in energy production outstrips consumption growth • Crude oil production rises sharply over the next decade • Motor gasoline consumption reflects more stringent fuel economy standards • The U.S. becomes a net exporter of natural gas in the early 2020s • U.S. energy-related carbon dioxide emissions remain below their 2005 level through 2040 Adam Sieminski February 21, 2013 2 U.S. energy use grows slowly over the projection reflecting improving energy efficiency and slow, extended economic recovery U.S. primary energy consumption quadrillion Btu Shares of total U.S. energy History 2000 2011 Projections 120 100 28% Natural gas 24% 26% 80 11% 6% 8% Renewables (excluding liquid biofuels) 8% 60 8% Nuclear 9% 2% 23% 1% Liquid biofuels 20% Coal 19% 40 39% 20 36% Oil and other liquids 32% 0 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 3 There are three main drivers of oil and natural gas production and resource estimates Economics Geology Technology Adam Sieminski February 21, 2013 4 These three drivers impact resource estimation metrics differently over time in an iterative process Theory Experiment Practice Thermal maturity Pressure Formation depth Geology Recompletions Drilling costs Technology Price of gas Economics Resources in Technically Economically Place Recoverable Recoverable P Resources Resources (TRR) (ERR) Q Well-level data, incl. estimated ultimate recovery (EUR) Adam Sieminski February 21, 2013 5 EIA’s focus is on the timing of production; the modeling focuses on these parameters • average initial production (IP) rate per well • average decline curve (can vary by region and vintage) • IP & decline curve define the Estimated Ultimate Recovery (EUR) per well Other parameters • drilling and operating costs • number of active rigs • how many wells a rig can drill (rig efficiency) • well spacing Adam Sieminski February 21, 2013 6 Technically recoverable resources (TRR) result from the well analysis Area (acres) ÷ drainage area of a well × % of area not yet drilled × % area with potential × distribution of EUR/well (see previous slide, this is the area under the curve for an individual well) = undiscovered TRR Adam Sieminski February 21, 2013 7 U.S. Shale Gas Adam Sieminski February 21, 2013 8 Technically recoverable natural gas resources reflect new information, a combination of assessments and EIA updates U.S. dry gas resources USGS Marcellus trillion cubic feet Assessment 3000 Benchmarking Unproved shale gas Unproved other gas (including Alaska* and offshore) 2500 Proved reserves (all types and locations) 2,327 *Alaska resource estimates prior to AEO2009 reflect resources from the North Slope that were not included in previously published documentation. 2000 543 1500 1,479 1000 500 304 0 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 AEO Edition Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 9 Domestic production of shale gas has grown dramatically over the past few years shale gas production (dry) billion cubic feet per day 30 Rest of US Marcellus 25 Haynesville Eagle Ford 20 Bakken Woodford 15 Fayetteville Barnett 10 Antrim 5 0 2000 2002 2004 2006 2008 2010 2012 Sources: LCI Energy Insight gross withdrawal estimates as of December 2012 and converted to dry production estimates with EIA-calculated average gross-to-dry shrinkage factors by state and/or shale play. Adam Sieminski February 21, 2013 10 An average well in shale gas and other continuous resource plays can also have steep decline curves, which require continued drilling to grow production million cubic feet per year 2,000 Haynesville Cumulative production = EUR 100% Eagle Ford 1,500 Woodford Marcellus 50% Fayetteville 1,000 0% 0 5 10 15 20 500 0 0 1 5 10 15 20 Source: EIA, Annual Energy Outlook 2012 Adam Sieminski February 21, 2013 11 For example: Oil production by monthly vintage of wells in the Williston Basin Source: DrillingInfo history through August 2012, EIA Short-Term Energy Outlook, February 2013 forecast Adam Sieminski February 21, 2013 12 Shale gas leads growth in total gas production through 2040 U.S. dry natural gas production trillion cubic feet History 2011 Projections 35 30 25 Shale gas 20 15 Non-associated offshore Tight gas 10 Alaska Coalbed methane 5 Associated with oil Non-associated onshore 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 13 Natural gas consumption is quite dispersed with electric power, industrial, and transportation use driving future demand growth U.S. dry gas consumption trillion cubic feet History Projections 35 *Includes combined heat-and-power and lease and plant fuel. **Includes pipeline fuel. 30 Electric 25 32% power 20 31% Industrial* 15 33% 33% 10 2% Gas to liquids 3% 6% Transportation** 13% 12% Commercial 5 19% 14% Residential 0 2005 2011 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 14 Growth of natural gas in transportation led by heavy duty trucks (LNG) and gas to liquids (diesel)… marine and rail to come? U.S. natural gas consumption quadrillion Btu History 2011 Projections 3.0 2.5 28% 2.0 Gas to liquids 1.5 Freight 38% 1% trucks 1.0 1% Buses 3% 1% Light-duty vehicles 0.5 3% Pipeline fuel 31% 95% 0.0 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Note: Gas to liquids includes heat, power, and losses. Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 15 Domestic natural gas production grows faster than consumption and the U.S. becomes a net exporter of natural gas around 2020 U.S. dry gas trillion cubic feet History 2011 Projections 35 30 25 Consumption 20 Domestic supply 15 10 5 Net imports 0 -5 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 16 U.S. Tight Oil Adam Sieminski February 21, 2013 17 Multiple factors have contributed to U.S. crude oil resource estimate increases over the years, with tight oil contributing recently U.S. crude oil and lease condensate resources in non-prohibited areas billion barrels 250 Unproved Alaska (1) Unproved L48 Offshore (2) 222.6 Unproved Tight Oil (3) 23.8 200 Unproved Tight Oil (reclassified from onshore) Unproved Other L48 Onshore Proved Reserves 48.6 150 41.6 100 16.5 67.0 50 25.2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year of Annual Energy Outlook (1) The USGS reduced NPR-A resource estimates, which is responsible for the lower AEO2013 Alaska resources. (2) Prior to AEO2009, resources in Pacific, Atlantic, and Eastern GOM OCS were under moratoria and not included. (3) Includes shale oil. Prior to AEO2011, tight oil is included in unproved other lower-48 onshore category. Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 18 Domestic production of tight oil has grown dramatically over the past few years tight oil production for select plays million barrels per day 2.0 1.8 Eagle Ford Bakken 1.6 Granite Wash Bonespring 1.4 Monterey Woodford 1.2 1.0 Niobrara-Codell Spraberry 0.8 Austin Chalk 0.6 0.4 0.2 0.0 2000 2002 2004 2006 2008 2010 2012 Source: Drilling Info (formerly HPDI), Texas RRC, North Dakota department of mineral resources, and EIA, through August 2012 Adam Sieminski February 21, 2013 19 U.S. tight oil production by selected plays U.S. crude oil production million barrels per day History 2011 Projections 1.0 0.9 Bakken Eagle Ford 0.8 Woodford 0.7 Austin Chalk 0.6 Spraberry Niobrara 0.5 Avalon/Bone Springs 0.4 Monterey Wolfcamp 0.3 Other 0.2 0.1 0.0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 20 U.S. tight oil production leads a growth in domestic production of 2.6 million barrels per day between 2008 and 2019 U.S. crude oil production million barrels per day History 2011 Projections 8 STEO Feb. 2013 U.S. crude oil projection 6 Tight oil 4 Other lower 48 onshore 2 Lower 48 offshore Alaska 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release and Short-Term Energy Outlook, February 2013 Adam Sieminski February 21, 2013 21 U.S. import share of liquid fuels declines due to increased production of tight oil and gas liquids, and greater fuel efficiency U.S. liquid fuels supply million barrels per day History 2011 Projections 25 20 45% Net petroleum and biofuel imports 37% 15 Biofuels excluding imports 10 Natural gas plant liquids 17% 12% 7% 1% Liquids from natural gas and coal 5 5% 38% Petroleum production 38% 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Note: Petroleum production includes: crude oil, lease condensates, refinery gain, stock changes Adam Sieminski February 21, 2013 22 More stringent standards for liquids consumption in light-duty vehicles made a big difference in EIA’s demand projections Light-duty vehicle liquids consumption million barrels per day 10 AEO2012 8 AEO2013 6 4 2 0 2010 2015 2020 2025 2030 2035 2040 Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski February 21, 2013 23 Global Shale Gas and Tight Oil Adam Sieminski February 21, 2013 24 EIA/ARI study to update & expand coverage of shale gas assessment and identifying prospective tight oil formations ,not assessed Source: U.S.
Load more

Recommended publications
  • Unconventional Gas and Oil in North America Page 1 of 24
    Unconventional gas and oil in North America This publication aims to provide insight into the impacts of the North American 'shale revolution' on US energy markets and global energy flows. The main economic, environmental and climate impacts are highlighted. Although the North American experience can serve as a model for shale gas and tight oil development elsewhere, the document does not explicitly address the potential of other regions. Manuscript completed in June 2014. Disclaimer and copyright This publication does not necessarily represent the views of the author or the European Parliament. Reproduction and translation of this document for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy. © European Union, 2014. Photo credits: © Trueffelpix / Fotolia (cover page), © bilderzwerg / Fotolia (figure 2) [email protected] http://www.eprs.ep.parl.union.eu (intranet) http://www.europarl.europa.eu/thinktank (internet) http://epthinktank.eu (blog) Unconventional gas and oil in North America Page 1 of 24 EXECUTIVE SUMMARY The 'shale revolution' Over the past decade, the United States and Canada have experienced spectacular growth in the production of unconventional fossil fuels, notably shale gas and tight oil, thanks to technological innovations such as horizontal drilling and hydraulic fracturing (fracking). Economic impacts This new supply of energy has led to falling gas prices and a reduction of energy imports. Low gas prices have benefitted households and industry, especially steel production, fertilisers, plastics and basic petrochemicals. The production of tight oil is costly, so that a high oil price is required to make it economically viable.
    [Show full text]
  • UCS TIGHT OIL.Indd
    The Truth about Tight Oil Don Anair Amine Mahmassani Methane from Unconventional Oil Extraction Poses Significant Climate Risks July 2013 Since 2010, “tight oil”—oil extracted from hard- to-access deposits using horizontal drilling and hydraulic fracturing (fracking)—has dramatically changed the US oil industry, reversing decades of declining domestic oil production and reducing US oil imports (EIA 2015a). In 2015, tight oil comprised more than half of US oil produc- 10,000 feet to reach sedimentary rock and then sideways or tion, bringing total production close to 10 million barrels per horizontally for a mile or more. Next, a mixture of water, day—a peak not seen since the 1970s (see Figure 1). But this sand, and chemicals is pumped at high pressure into the wells sudden expansion has also led to an increase of global warm- to create fractures in the rocks, which frees the oil and gas ing emissions due, in large part, to methane—an extremely potent heat-trapping gas that is found in larger concentra- tions in tight oil regions. Although most of the emissions associated with the con- sumption of oil are a result of burning the finished fuel (for example, in a car or truck), the emissions from extracting, transporting, and refining oil add, on average, 35 percent to a fuel’s life cycle emissions. These “upstream” emissions can- not be overlooked when seeking to mitigate emissions from oil use overall. Recent scientific evidence highlights major gaps in our knowledge of these large and rising sources of global warming pollution (Caulton et al.
    [Show full text]
  • U.S.-Canada Cross- Border Petroleum Trade
    U.S.-Canada Cross- Border Petroleum Trade: An Assessment of Energy Security and Economic Benefits March 2021 Submitted to: American Petroleum Institute 200 Massachusetts Ave NW Suite 1100, Washington, DC 20001 Submitted by: Kevin DeCorla-Souza ICF Resources L.L.C. 9300 Lee Hwy Fairfax, VA 22031 U.S.-Canada Cross-Border Petroleum Trade: An Assessment of Energy Security and Economic Benefits This report was commissioned by the American Petroleum Institute (API) 2 U.S.-Canada Cross-Border Petroleum Trade: An Assessment of Energy Security and Economic Benefits Table of Contents I. Executive Summary ...................................................................................................... 4 II. Introduction ................................................................................................................... 6 III. Overview of U.S.-Canada Petroleum Trade ................................................................. 7 U.S.-Canada Petroleum Trade Volumes Have Surged ........................................................... 7 Petroleum Is a Major Component of Total U.S.-Canada Bilateral Trade ................................. 8 IV. North American Oil Production and Refining Markets Integration ...........................10 U.S.-Canada Oil Trade Reduces North American Dependence on Overseas Crude Oil Imports ..................................................................................................................................10 Cross-Border Pipelines Facilitate U.S.-Canada Oil Market Integration...................................14
    [Show full text]
  • Worldwide Operations and Locations March 2019
    Worldwide Operations and Locations March 2019 Kuparuk Barents Alpine Prudhoe Bay Sea Aasta Hansteen UNITED STATES – ALASKA Heidrun Norwegian Trans-Alaska Pipeline System (TAPS) CANADA Sea NORWAY Clair Alvheim Anchorage Britannia Aberdeen Stavanger Surmont UNITED KINGDOM J-Area Greater Ekosk Area Montney North Sea Calgary NORTH AMERICA London Bakken East Irish Sea EUROPE Pacic Ocean UNITED STATES – Wyoming/ LOWER 48 Caspian Uinta Basin Sea Niobrara Beijing CHINA Bartlesville JAPAN Anadarko Basin Penglai Tripoli Houston Atlantic Ocean MIDDLE EAST Permian Basin LIBYA ASIA GOM Eagle Ford Doha Gulf of Mexico Qatargas 3 Pacic Ocean QATAR Panyu CAMBODIA South China Sea Exploration MALAYSIA Block G Production Block J KBB AFRICA Natuna Sea Exploration and Production COLOMBIA Indian Ocean Kuala Lumpur Major Pipeline Corridor SINGAPORE Key Development or Program INDONESIA Jakarta Java Sea Headquarters Bayu-Undan/Darwin LNG Key Oce Location SOUTH TIMOR-LESTE Timor Sea AMERICA Athena AUSTRALIA Australia Pacic LNG Brisbane CHILE Perth World’s Largest Independent E&P Company ConocoPhillips is the world’s largest independent exploration and production (E&P) company based on production and proved reserves. 2018 Production* 2018 Proved Reserves 2018 Production* 2018 Proved Reserves by region by region 1,283 MBOED 5.3 BBOE 2018 Resources The company explores for, produces, transports and markets crude oil, 40 BBOE bitumen, natural gas, natural gas liquids and liqueed natural gas on a 5% 34% Canada 22% Alaska 20% worldwide basis. Key focus areas include safely operating producing 15% Natural Gas 8% Non OECD Alaska 23% assets, executing major development projects and exploring for new North American Asia Pacic & Natural Gas resources in promising areas.
    [Show full text]
  • Future Trends in Global Oil and Gas Exploration Dr
    Future Trends in Global Oil and Gas Exploration Dr. Michael C. Daly Executive Vice President Exploration, BP plc Imperial College 23 September Thank you for the invitation to speak at your conference celebrating the centenary of Oil Technology at Imperial College. It is an honour and great pleasure to be here. I have been asked to discuss the future trends of global oil and gas exploration, a subject I am deeply passionate about and have lived with for over 30 years now. Of course many factors will influence the future of exploration. However, the fundamentals of resource quality, technology and 1 geopolitics seem paramount to me. Today I will largely confine my remarks to the first of these, resource quality, which I believe to be the fundamental driver. Exploration trends will follow the industry’s perception of the “next best resource base” to explore and develop, which incorporates both the scale and quality of resource and the cost of its development. Today we are some 40 years into the deepwater era. And although we are perhaps half way through it in finding terms, deepwater exploration is a trend that will be with us for some time yet. Deepwater will likely be followed by two very different trends, both of which are beginning to emerge. Firstly, a move to the unexplored arctic frontier of ice bound continental shelves; and secondly to a re- 2 exploration of the onshore and shallow waters of the world with new images, new technology and occasionally new ideas. But before getting into this in detail, we need to understand the context of what there is to find, where it might be, and what it will take to find it.
    [Show full text]
  • Statoil Business Update
    Statoil US Onshore Jefferies Global Energy Conference, November 2014 Torstein Hole, Senior Vice President US Onshore competitively positioned 2013 Eagle Ford Operator 2012 Marcellus Operator Williston Bakken 2011 Stamford Bakken Operator Marcellus 2010 Eagle Ford Austin Eagle Ford Houston 2008 Marcellus 1987 Oil trading, New York Statoil Office Statoil Asset 2 Premium portfolio in core plays Bakken • ~ 275 000 net acres, Light tight oil • Concentrated liquids drilling • Production ~ 55 kboepd Eagle Ford • ~ 60 000 net acres, Liquids rich • Liquids ramp-up • Production ~34 koepd Marcellus • ~ 600 000 net acres, Gas • Production ~130 kboepd 3 Shale revolution: just the end of the beginning • Entering mature phase – companies with sustainable, responsible development approach will be the winners • Statoil is taking long term view. Portfolio robust under current and forecast price assumptions. • Continuous, purposeful improvement is key − Technology/engineering − Constant attention to costs 4 Statoil taking operations to the next level • Ensuring our operating model is fit for Onshore Operations • Doing our part to maintain the company’s capex commitments • Leading the way to reduce flaring in Bakken • Not just reducing costs – increasing free cash flow 5 The application of technology Continuous focus on cost, Fast-track identification, Prioritised development of efficiency and optimisation of development & implementation of potential game-changing operations short-term technology upsides technologies SHORT TERM – MEDIUM – LONG TERM • Stage
    [Show full text]
  • The US Tight Oil Revolution in a Global Perspective
    September 2013 The US Tight Oil Revolution in a Global Perspective OXFORD ENERGY COMMENT Bassam Fattouh and Amrita Sen 1. Introduction The US tight oil revolution has been touted by many analysts as a game changer with potential wide and lasting implications on global oil market dynamics. Indeed, the size of the US supply shock has been nothing short of phenomenal, with both 2011 and 2012 seeing one million b/d of year-on-year growth in total liquids production with a similar growth expected for this year – a feat previously achieved in the 2000s by the former Soviet Union (FSU). But the US tight oil revolution has not just been a significant positive shock, it was the main contributing factor to the shift in market sentiment towards a resource abundance mindset – compared to one of scarcity just a few years before. In a recent article, Paul Stevens warns that ‘the world might be drifting into an oil price shock’, describing the current situation as ‘very reminiscent of the period 1981–86 which culminated in the dramatic 1986 oil price collapse’.1 In its ‘Energy Outlook 2030’, BP argues that in the face of rising unconventional oil from North America: OPEC members will cut production over the current decade; spare capacity exceeds 6 Mb/d by 2015, the highest since the late 1980s [and faced with this challenge] OPEC cohesion is a key oil market uncertainty, especially in the current decade.2 Citi considers: the growing continental surplus of hydrocarbons points to North America effectively becoming the new Middle East by the next decade3
    [Show full text]
  • Technically Recoverable Shale Oil and Shale Gas Resources: an Assessment of 137 Shale Formations in 41 Countries Outside the United States
    Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States June 2013 Independent Statistics & Analysis U.S. Department of Energy www.eia.gov Washington, DC 20585 June 2013 This report was prepared by the U.S. Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy. By law, EIA’s data, analyses, and forecasts are independent of approval by any other officer or employee of the United States Government. The views in this report therefore should not be construed as representing those of the Department of Energy or other Federal agencies. U.S. Energy Information Administration | Technically Recoverable Shale Oil and Shale Gas Resources 1 June 2013 Executive Summary This report provides an initial assessment of shale oil resources and updates a prior assessment of shale gas resources issued in April 2011. It assesses 137 shale formations in 41 countries outside the United States, expanding on the 69 shale formations within 32 countries considered in the prior report. The earlier assessment, also prepared by Advanced Resources International (ARI), was released as part of a U.S. Energy Information Administration (EIA) report titled World Shale Gas Resources: An Initial Assessment of 14 Regions outside the United States.1 There were two reasons for pursuing an updated assessment of shale resources so soon after the prior report. First, geologic research and well drilling results not available for use in the 2011 report allow for a more informed evaluation of the shale formations covered in that report as well as other shale formations that it did not assess.
    [Show full text]
  • Sustainability Report 2013 PDF 2 MB
    2013 Sustainability report 2013 Sustainability report © Statoil 2014 STATOIL ASA BOX 8500 NO-4035 STAVANGER NORWAY TELEPHONE: +47 51 99 00 00 www.statoil.com Cover photo: Harald Pettersen 2013 Sustainability report 1 Sustainability at Statoil ......................................................................................................................................1 2 Materiality and scope .........................................................................................................................................2 3 Safety and security ..............................................................................................................................................3 4 Climate change .....................................................................................................................................................8 5 Resource efficiency ...........................................................................................................................................15 6 Environmental impact ......................................................................................................................................16 7 Transparency and anti-corruption ...............................................................................................................19 8 Local value creation ..........................................................................................................................................23 9 Human rights ......................................................................................................................................................26
    [Show full text]
  • Shale Gas and Tight Oil: Framing the Opportunities and Risks
    30 Shale gas and tight oil: Framing the opportunities and risks Discussions about broader access to unconventional natural gas and oil should account for a wide range of potential benefits and risks. Tommy Inglesby, Rob Much media and government attention has the legitimate focus for policy makers in each Jenks, Scott Nyquist, focused on disruptive innovation in the country where shale-gas and tight-oil resources Dickon Pinner zero-emission renewables area of the power- are located. Instead, it is intended to frame generation landscape. But “old energy” has discussions on the potential benefits and risks created some disruptive innovations of its own. associated with these new technologies. With the scale-up of two technologies, hori- zontal drilling and hydraulic fracturing, producers In the United States, where shale-gas and in the United States have demonstrated the tight-oil production have so far been adopted viability of extracting more than 50 years’ worth more than elsewhere, these new technologies of domestic natural-gas and oil resources—but have shown the potential for significant impact in so doing, have raised important debates on the on the energy landscape, and indeed much trade-offs between the potential economic change has already occurred. The share and environmental implications of the new tech- of natural gas in electric power generation has nologies. This article does not set out a view already increased significantly, for example, on where these debates should come out. That is and there is great potential for increased use of 31 low-cost natural gas in transportation and industry. with significant “unconventional” resources Such developments could enable increases in include Abu Dhabi, Algeria, Argentina, Australia, US economic output and employment—particularly Canada, China, Colombia, Germany, India, if they facilitate reductions in consumer and Indonesia, Mexico, Oman, Poland, Russia, Saudi corporate energy bills, increases in domestic Arabia, Ukraine, and the United Kingdom.
    [Show full text]
  • Working with Tight Oil
    Reprinted with permission from Chemical Engineering Progress (CEP), April 2015. Copyright © 2015 American Institute of Chemical Engineers (AIChE). Back to Basics Working with Tight Oil Tim Olsen Crude oil derived from shale plays is less expensive Emerson Process Management and more readily available than traditional crudes, but it poses unique challenges to refiners. ight oil, sometimes referred to as light tight oil, is the oil. Light crude oil has an API gravity higher than a crude oil from shales or other low-permeability 31°API, medium crude between 22°API and 31°API, and Tgeologic formations. Permeability is a measure of a heavy crude an API gravity below 22°API. Sweet crudes material’s ability to allow fluid, such as oil or gas, to move contain less than 0.5% sulfur (sour crudes contain more than through it. Obtaining tight oil from shales requires hydraulic that). Tight oils are typically light and sweet. U.S. crude oil fracturing, often using the same horizontal well technology production is significantly lighter than in the past (Figure 2); that is employed in the production of shale gas. especially noticeable is the increase in tight oils with a typi- Tight oil is found throughout the world, as shown in cal API gravity of 40–45°API. Figure 1 and Table 1 (1). However, the U.S., Canada, China, Refineries in the U.S. Gulf Coast area have made major and Argentina are currently the only four countries in the investments to enable them to process heavier sour crude oils world that are producing commercial volumes of either nat- from sources such as Venezuela and Canada.
    [Show full text]
  • 2020 Annual Report
    2020 Annual Report CONTENTS II To our shareholders IV Positioning for a lower-carbon energy future VI Energy for a growing population Scalable technology solutions VIII Providing energy and products for modern life IX Progressing advantaged investments X Creating value through our integrated businesses XII Upstream XIV Downstream XV Chemical XVI Board of Directors 1 Form 10-K 124 Stock performance graphs 125 Frequently used terms 126 Footnotes 127 Investor information ABOUT THE COVER Delivery of two modules to the Corpus Christi Chemical Project site in 2020. Each module weighed more than 17 million pounds, reached the height of a 17-story building, and was transported more than 5 miles over land. Cautionary Statement • Statements of future events or conditions in this report are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; planned capital and cash operating expense reductions and efficiency improvements, and ability to meet or exceed announced reduction objectives; future reductions in emissions intensity and resulting reductions in absolute emissions; carbon capture results; resource recoveries; production rates; project plans, timing, costs, and capacities; drilling programs and improvements; and product sales and mix differ materially due to a number of factors including global or regional changes in oil, gas, or petrochemicals prices or other market or economic conditions affecting the oil, gas, and petrochemical industries; the severity, length and ultimate
    [Show full text]