Lakagigar: Catastrophe and Climate Change

vol. 11, no. 4 – 2014

GEOSCIENCE & TECHNOLOGY EXPLAINED geoexpro.com

GEO Profile: Dr. Robert E. Sheriff

GEO TOURISM Photo Competition Winner Lakagigar: Catastrophe and Climate Change

GEOPHYSICS Reservoir Rocks Behaving Differently

EXPLORATION Mongolia: Potential in an Emerging Economy

g e o l o g y g e o p h y s i c s r e s e r v o i r m a n a g e m e n t

Previous issues: www.geoexpro.com

GEOSCIENCE & TECHNOLOGY EXPLAINED

CONTENTS Vol. 11 No. 4 PetroMatad This edition of GEO ExPro Magazine focuses on Oil shale outcrops in Mongolia Asia and the FSU and Geophysics features 22 Cover Story: GEO Tourism: columns Lakagigar – Catastrophe and Climate Change 5 Editorial 28 Technology: Technology Driving Unconventional Exploration 6 Market Update 36 Seismic Foldout: Hoop Basin, Barents Sea 8 Update 48 Exploration: 16 Licensing Opportunities Mongolia – Potential in an Emerging Economy 18 A Minute to Read 54 Technology: 32 GEO Profile: Dr. Robert Sheriff – “Never Hold Back” 3D Seismic Data and Geohazard Analysis 42 GEO Education: Fracture, Fracture Everywhere, Part 2 58 Seismic Foldout: 68 Recent Advances in Technology: Frontier Exploration in the Middle Caspian Basin IsoMetrix – Isometric Sampling 64 Technology: 78 What I Do: The Chief Explorer Three Disappointments in the Barents Sea 90 History of Oil: 72 Geophysics: Reservoir Rocks Behaving The PESGB Celebrates Its 50th Birthday Differently 98 GEO Cities: Khanty Mansiysk – 80 Seismic Foldout: Offshore Greece – Imaging the Oil, Sport and Woolly Rhinos Next Hydrocarbon Province 100 Exploration Update 86 Exploration: Unveiling Oil Targets in Colombian Amazonia 102 GEO Media: The Secret World of Oil 94 Industry Issues: 104 Q&A: Delighting in Geophysics The Fracking Debate in Europe 106 Hot Spot: Offshore Canning Basin, Australia 108 Global Resource Management Using 3D seismic for 54 geohazard analysis

36 dGB

22 98 90 18 94 16 58 48 18 80 32 6 14 100

86 16 12 100 101

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A Disturbing World GEOSCIENCE & TECHNOLOGY EXPLAINED

We live in troubling times. After www.geoexpro.com the so-called ‘Arab Spring’ began in

December 2010 in Tunisia, unrest GeoPublishing Ltd spread westwards through Libya, 15 Palace Place Mansion

where the toppling of dictator Lucidwaters/Dreamstime.com Kensington Court © Muammar Ghaddafi has not stopped London W8 5BB, UK the turbulence and bloodshed. +44 20 7937 2224 To the east, civil unrest in Egypt Managing Director culminated in the overthrow of two Tore Karlsson governments and the reintroduction of military rule, while further east again there are ongoing disturbances in Yemen and Editor in Chief Jane Whaley Bahrain and ruling elites are getting rattled. Meanwhile, Syria has collapsed into full scale [email protected] civil war, and the very young and fragile democracy of Iraq looks increasingly unstable and undemocratic as the fundamentalist fighters of ISIS spread their hold on the oil-rich regions Contributing Editors of northern Iraq and Kurdistan. To the north, Gaza and Israel continue their uneven trade Thomas Smith [email protected] of shooting missiles at each other. The Middle East and North African regions have been at the center of world energy Ken White [email protected] supplies for nearly a hundred years, accounting for over half of global proved reserves and almost a third of production. The rest of the world looks on aghast and helpless at the Halfdan Carstens [email protected] violence and horror, but also with concern over security of energy supply and the effect of these upheavals on the oil market and ultimately the wider global economy. If ISIS forces Rasoul Sorkhabi consolidate their hold in Iraq and Syria, they could control a large slice of the region’s [email protected] reserves; it is estimated that they are already adding about two million US dollars a day to Paul Wood their coffers through selling oil from captured Iraqi fields on the black market. [email protected] Further north again, over 2,000 people have been killed in eastern Ukraine in a civil war that is as much about wealth and power struggles between Europe, the US and Russia as it is Editorial enquiries GeoPublishing about territorialism in Eastern Europe. Sanctions on Russia have so far had little impact on Jane Whaley either the price or the flow of oil and gas from Russia, but if the situation continues, that is +44 7812 137161 likely to change. [email protected] Despite this, the search for hydrocarbons goes on, and technological improvements will www.geoexpro.com continue to unlock hitherto untouchable resources. Worries about energy security may indeed Marketing Director push some of these developments forward, and without easy access to Russian supplies, Kirsti Karlsson Europe may open up to shale gas; trouble and conflict always bring a gain to someone. But it is +44 79 0991 5513 still a very disturbing world, and all we can do is hope that peace will soon prevail. [email protected]

Subscription GeoPublishing Ltd +44 20 7937 2224 15 Palace Place Mansion Kensington Court London W8 5BB, UK [email protected] VOL. 11, NO. 4 – 2014

GEOSCIENCE & TECHNOLOGY EXPLAINED geoexpro.com GEO EXPro is published bimonthly for a base subscription rate of GBP Jane Whaley GEO Pro le: Dr. Robert E. Sheri 60 a year (6 issues). Editor in Chief GEO TOURISM We encourage readers to alert us Photo Competition Winner Lakagigar: to news for possible publication Catastrophe and and to submit articles for publication. Climate Change LAKAGIGAR: Catastrophe and Climate Change Cover Phtograph: The eruption of the Laki Fissure in Iceland in 1783 caused this spepctacular 25 Main Image: Miguel Ángel Caja km-long row of craters – but also killed 10,000 Icelanders and had a disastrous Reservoir Rocks BehavingGEOPHYSICS Di erently Inset: Thomas Smith effect on the world’s climate. Mongolia: Potential in an EmergingEXPLORATION Economy Layout: Bookcraft Ltd. inset: Geophysicist Dr. Robert (Bob) Sheriff is best known for his seminal work, G E O L O G Y G E O P H Y S I C S Print: NXT Oslo Reklamebyrå R E S E R V O I R the Encyclopedic Dictionary of Exploration Geophysics. M A N A G E M E N T

issn 1744-8743 © 2014 GeoPublishing Limited. Copyright or similar rights in all material in this publication, including graphics and other media, is owned by GeoPublishing Limited, unless otherwise stated. You are allowed to print extracts for your personal use only. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photographic, recorded or otherwise without the prior written permission of GeoPublishing Limited. Requests to republish material from this publication for distribution should be sent to the Editor in Chief. GeoPublishing Limited does not guarantee the accuracy of the information contained in this publication nor does it accept responsibility for errors or omissions or their consequences. Opinions expressed by contributors to this publication are not necessarily those of GeoPublishing Limited. GEOExPro September 2014 5 BBB BBB

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Booth B SEG, Denver B ABBREVIATIONS Booth #1020 Libya’s Missing Barrels B Barents Sea #554 Numbers B Libya turns on the taps – but for how long? (US and scientific community) New 2D Multi-Client Seismic and Induced Polarization M: thousand = 1 x 103 The Brent oil price continues to slide as Libyan oil is expected to gradually return to MM: million = 1 x 106 the market after two key export terminals, which had been blocked for almost a year B: billion = 1 x 109 by rebels, return to use. T: trillion = 1 x 1012 Libya’s hydrocarbon production and exports have been substantially affected by 7425/9-U-1 civil unrest over the past few years. In the wake of the civil war in 2011 resulting Liquids B! B in the fall of Col. Mu’ammar al-Qadhafi’s regime and the gradual consolidation of barrel = bbl = 159 litre B control over most parts of the country, oil production collapsed, although around boe: barrels of oil equivalent B bopd: barrels (bbls) of oil per day BB B B 85% of it resumed within a fairly short time in the autumn and early winter of 2012. BB BBB Protests at oil fields escalated in June 2013 and crippled the oil sector for a second bcpd: bbls of condensate per day BB BB B bwpd: bbls of water per day BB time since the Arab Spring, leading to a near-halt in production from the oil fields B B linked to ports after most storage tanks became full. Libya produced around 1.4 B Gas B D84-45/1 MMbopd before the protests started, but blockades and strikes reduced the output 3 ! 7325/1 MMscfg: million ft gas B B 7320/3-U-1BB #z 3 B! Atlantis to a meager 150,000 bpd. Now production has increased somewhat to around MMscmg: million m gas B Q! ! 325,000 bpd, which is still only 23% of the post-2011 civil war production level. The Tcfg: trillion cubic feet of gas 7324/2-1B Æ3 X B Legend Æ3 Q deal to reopen the terminals presents a major breakthrough as the export capacity is a B FH2D-14 Phase 1 Ma: Million years ago FH2D-14 Phase 2 #z expected to rise to 500,000 bpd, but it is still a long way from the pre-protests level. FH2D-14 Phase 1 and #z Libya’s economy is heavily dependent on hydrocarbons. According to the Inter Induced Polarization FH2D-14 Phase 2 and national Monetary Fund (IMF), oil and natural gas accounted for nearly 96% of total LNG Induced Polarization Liquified Natural Gas (LNG) is natural government revenue and 98% of export revenue in 2012. So obviously, the country’s !! gas (primarily methane) cooled to a B 7324/7-2QB7324/7-1 7324/8-1)V! economy has been o 7321/8-1 4000 temperature of approximately -260 C. ãBV! 7324/08-01 suffering severely B (Wisting BV B Central) from the lost income 3500 ã BBBBBBB B Liibyan Oilil PPrroduction ((Mbopd)) NGL BBBQ from oil exports. 3000 Natural gas liquids (NGL) include BBBB B ! 7324/10-1 2500 propane, butane, pentane, hexane ÿ Caution Advised and heptane, but not methane and 2000 7225/03-01 Libya is a member of ethane. (Norvarg) 1500 OPEC, so to ensure a 7226/02-01 Reserves and resources (Ververis) market stability, 1000 a a P1 reserves: B BãBV the increase in the 500 7220/04-01 B BP Statistical Review of World Energy 2013 Quantity of hydrocarbons believed B (Kramsno) B country’s production 0 7222/06-01S 7224/06-01 recoverable with a 90% probability (Obesum) B 03 05 07 09 11 13 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 7220/08-01 a (Arenaria) B will be coordinated 7220/05-02 2 0 2 0 2 0 2 0 2 0 2 0 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 1 9 2 0 (Johan a Æ)V Spectrum Multi-Client seismic B Æ)V (Nunatak)%V a with a cut in Castberg) Æ)V coverage in the Barents Sea P2 reserves: Æ)VV 7219/08-02 Æ) a production by other members that have been compensating for Libya’s missing barrels. Quantity of hydrocarbons believed ãBVV 7220/07-02 B B(Iskrystall) Æ) Q Libya has plenty of oil that can reach the market in the short term – around 7.4 recoverable with a 50% probability a S (Skavl) B MMb of crude oil in storage at Es Sider and Ras Lanuf ports alone. When the two 7226/11-01 áÿV terminals reopen, these barrels would be ready for export, covering the period it takes P3 reserves: Spectrum has completed the second phase of acquisition for a V B 7228/07-01A B B regional broadbandãB 2D Multi-Client seismic survey in the Barents Sea, before production at the fields supplying the terminals is restarted. The market is now Quantity of hydrocarbons believed 7222/11-01 Æ)BV 7222/11-02 a B B recoverable with a 10% probability 7220/10-01 (Caurus) Fingerdjupet-Hoop area. A total of 5,300 km of data has been acquired. starting to price in that these barrels would reach the market soon and this has pushed (Langlitinden) (Salina) )V This is a continuation of a 2,226 km survey acquired last year. Rock down oil prices after the news about the reopening of the ports became known. " a Oilfield glossary: %V property products for lithology and fluid prediction will be provided for the Libya now holds the largest amount of proved crude oil reserves in Africa, and is Q B www.glossary.oilfield.slb.com Æ)VáÿV ãBV entire survey to enhance prospect evaluation. B an important contributor to the global supply of light, sweet (low sulfur) crude oil, %V Q around 70% of which was exported to the European market. The loss of the Libyan )Va Additionally, SpectrumÆ)V is collaborating with ORG Geophysical AS to acquire around 5,300 km of Induced Polarization measurements in the barrels has not been easy to replace as the world production capacity buffer, 80% of ÿ same area. This combined product, focused on nominated blocks, will )V Æ)V XB3ÿ which comes from Saudi Arabia, is of more sour grades. Thus, the European Brent " Æ)V provide oil companies with a unique dataset to evaluate prospectivity of B Q Æ)V rd B market is celebrating that more light crude will soon be flowing in the pipelines. With %V Æ)3QQ V " the Fingerdjupet-Hoop area ahead of the 23 licensing round. B XXÆ) BãV B the reopening of these two key ports in the east of Libya, the market is hoping that the a B B +47%V 9018B a 3258aX áÿV Sharara field in the west will soon resume production, returning the country to full B B B " In association with )V Æ)V [email protected]" a Æ)V %V capacity. European oil stocks have been trading at a five-year low for most of the year. Qeye www.spectruma"a asa.com Labs But it is wise to be cautious as the political situation is still unstable. There is a risk " B that this improvement will not last for very long if the political state of affairs in the B)VQBB)V B BQ3=Æ)B)VÆ))V country does not improve. It will, however, provide a breather to the tight oil market aB B %V B B" B since the political risk has increased markedly with the unstable situation in Iraq. B B B Thina Margrethe Saltvedt, Ph.D., Nordea B B%V B B B a B B Q 6 GEOExPro September 2014 Q B BB B B BBBB

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7225/03-01 (Norvarg) a 7226/02-01 a a(Ververis) B BãBV B 7220/04-01 B (Kramsno) B 7222/06-01S 7224/06-01 (Obesum) B 7220/08-01 a (Arenaria) B 7220/05-02 (Johan a Æ)V Spectrum Multi-Client seismic B Æ)V (Nunatak)%V a Castberg) Æ)V coverage in the Barents Sea Æ)VV 7219/08-02 Æ) a ãBVV 7220/07-02 B B(Iskrystall) Æ) Q a S (Skavl) B 7226/11-01 áÿV Spectrum has completed the second phase of acquisition for a ãBV B 7228/07-01A B B regional broadband 2D Multi-Client seismic survey in theV Barents Sea, 7222/11-01 a B Æ)B 7220/10-01 7222/11-02 (Caurus) Fingerdjupet-Hoop area. A total of 5,300 km of data has been acquired. B (Salina) (Langlitinden) " a)V This is a continuation of a 2,226 km survey acquired last year. Rock Q %V B property products for lithology and fluid prediction will be provided for the Æ)VáÿV ãBV entire survey to enhance prospect evaluation. B %V Q )Va Additionally, SpectrumÆ)V is collaborating with ORG Geophysical AS to acquire around 5,300 km of Induced Polarization measurements in the ÿ same area. This combined product, focused on nominated blocks, will )V Æ)V XB3ÿ V" Æ)V provide oil companies with a unique dataset to evaluate prospectivity of B Q B %V Æ)3Æ) QQ the Fingerdjupet-Hoop area ahead of the 23rd licensing round. XXÆ)V " BãV B a B B B +47%V 9018B a 3258aX áÿV B B B " In association with )V Æ)V [email protected]" a Æ)V %V Qeye www.spectruma"a asa.com Labs " )VB B BQ3=Æ)B)VQÆ))V aB BQ B %V B B" B B B B B B%V B B B a B B Q Q B BB B B BBBB

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BBB Update Ideas and Innovation Quaternary 1.8 Industry is faced with serious challenges gene e o

N Tertiary oic

– it’s time to think innovatively z 23 ening en o C “We usually find oil in a new place with old ideas. Sometimes, we gene ts o p find oil in an old place with a new idea, but we seldom find much oil ale o P

in an old place with an old idea.” Parke A. Dickey’s 1958 quote rings y 65* as loud and clear today as it did 56 years ago. Unlocking the oil and tic sta r ge n ening y

o Cretaceous gas trapped in very tight formations, in areas that were considered tla n ge n ts o p mature exploration plays, is a clear example. Yes, it took adapting o lpine o r some new technologies and a lot of perseverance, but ultimately it was outh A S A a revolutionary idea that drove this major change in how and where ea sta r we drill for oil and gas. amide o r a r 145 L eakup

Geophysical innovation plays an important role in both oic z Jurassic eenland S

exploration and exploitation of hydrocarbons, as pointed out by r es o

Robert Peebler while chairman and CEO of ION Geophysical. He M ting angaea b r i f recognized that “Geophysics arguably represents the single most P egian- G w transformative technological link in the value creation chain for ea r ts o r 199* oil and gas companies, if for no other reason than the fact that it ening N th S e n is typically where the value creation process begins. The point of o r Triassic v N inception of almost every discovery or infill well can invariably be ts o p found somewhere in a seismic data set.” tion E Yet, in spite of amazing advances in seismic innovation, tic sta r 251* tla n

ting Permian one mission has remained elusive, as Sofia Khan, president of tin c i f oic z Nonlinear Seismic Imaging, Inc., points out. “Regardless of the al A o o r t r e E x xi c scale of operation, the quest remains the same – to directly detect e n i v e C 299 hydrocarbons beneath the earth’s surface. Realization of the need for hane r

P Carboniferous emerging technologies by major operators confirms my own belief that there is no technology being used yet that can help us in directly ulf of M G ANGAEA he Big F

locating the hydrocarbon accumulations with any level of certainty.” T *

The Seismic Holy Grail TION OF P 359* “At present, when there is so much at stake, the oil industry will have Devonian FORM A to take a second look at the fundamentals of the current seismic oic technology to determine if something basic has been missed or z ale o

some wrong assumptions have been made in the earlier stages of its P development that now require the necessary revisions, ” says Ms. y 416 Khan. “To satisfy the current requirements of making new discoveries ge n and extracting larger reserves from the producing fields in more o Silurian

an o r 443* cost effective ways, industry is faced with serious challenges to find y a way to map reservoir heterogeneities and its flow characteristics is c Ordovician ge n a r o with greater accuracy. Quite often, current seismic imaging efforts V fail to satisfy the production needs of mature reservoirs and end up providing ambiguous results and solutions to production problems. In 488 spite of all the recent progress in seismic data acquisition and seismic aledonian o r data processing, results can be non-unique and do not identify the C Cambrian higher porosity and fractured zones that contain a significant portion of the hydrocarbon reserves.” Ms. Khan has taken that second look and may have found that The Great Unconformity 542 ‘seismic holy grail’ by exploring beyond conventional assumptions commonly used when acquiring and processing seismic data. Acknowledging the significance of new frequencies generated by oic z ian reservoirs not present in the input signal may very well be that o e r

direct link to the advancement in reservoir modeling the oil and gas o t amb r

companies have long sought. (See related article on page 72.) e c r eop r Thomas Smith P N

8 GEOExPro September 2014 The Fine Art of BroadSeis Truly broadband data finely sampled in all dimensions

Data courtesy of Lundin. 450-ms zoom on fractures 650-ms zoom on iceberg scours

20 m width

20 m width 15 m width 20 m width

450-ms zoom on channels Inline Glacier ﬂ ushes 300 m — 200 ms width old fjords

75 m diameter Gas pockets

— 400 ms Sedimentary inﬁ ll

These timeslices and inline are from a North Sea data set acquired with BroadSeis streamers at 75 m and BroadSource source arrays at 37.5 m separation. The survey was binned on a 6.25 x 9.375 m grid using intelligent 5D interpolation and regularization for use as a site survey.

BroadSeisTM with BroadSourceTM delivers ghost-free data Contact us to discuss the resolution achievable with with over 6 octaves of signal bandwidth (2-200Hz) for BroadSeis and BroadSource, or watch our narrated high-resolution images that can be used as a site survey presentation at cgg.com/broadsource for shallow hazard identifi cation. BroadSource can be deployed in fl ip-fl op mode, so is compatible with 3D acquisition geometries. Use of the downgoing ghost wavefi eld as well as the upgoing primary increases spatial resolution and reduces the acquisition footprint, so that very small features such as channels, small gas pockets, fractures and iceberg scours can be imaged, reducing development risk.

cgg.com/broadsource Update Capital Discipline A Shake-up for the Industry Despite record levels of capital investment since 2005, oil production outside of North America has virtually flat-lined and investors are losing confidence. How is the industry reacting? To say there is concern over the industry’s degree of flexibility over how much they commitment to cutting costs. The major rising capital expenditure is an under consume – can pull back dramatically. buyers of physical assets appear to be statement. ‘Capital discipline’ is the Not only do high oil prices suppress private equity, sovereign wealth funds and new in-phrase. The headline-grabbing individual demand but they also sap the commodity houses that have been challenges of more difficult geology economies, removing the ‘feel good’ factor moving beyond trading into investments and political disruptions have been and capping growth, preventing any all along the supply chain. exacerbated by scarcities of experienced possible lift-off in general consumption. and qualified staff, painful surges in key The result is that investors are looking Future Prospects exchange rates and several large-scale nervous. Even the best performing There is little consensus on what happens blighted projects. Many would say the majors – ExxonMobil and Chevron – next. If the shale boom peaks in the early underlying factor has been a level of have seen their shares rise only 11% in 2020s, supply shortages could become complacency among the major producers the period 2011–14, while the Standard a more pressing reality with the world fueled by the price surge of the mid-2000s. and Poor 500 index has risen 40%. Shell increasingly dependent on Middle The facts are that the costs of oil and has actually dropped 2%. Eastern oil. Whether prices will then rise gas extraction have risen almost 11% Adding to investor fears of poor enough to allow more expensive, high per year since 1999, reaching a high- returns, a growing fossil fuel divestment break-even point investment depends point of $700bn in 2013 and out-pacing campaign has been gaining traction on the extent to which economies have revenues by 2–3%. Rising capex has and several new benchmarks have been recovered from the current slump – as not been matched by rising production. developed that specifically exclude oil well as the alternatives developed in the Although there has been an increase and mining companies. The concern is meantime. The IEA is predicting prices of 11.9 MMbpd since 2000, the bulk of that discoveries in the Arctic or ultra- $15/b higher than current levels by 2025 the capex increase has been post-2005, deep water may simply become stranded and annual investment of $850bn by the a period in which conventional oil assets with development either not 2030s. However, 90% of oil investment production has almost flat-lined. justified by the oil price or ruled out by will simply be compensating for declines regulators and governments focused in existing fields, keeping production at Oil Prices Are Key on ‘unburnable carbon’. In April this current levels; similarly 70% of gas invest Most new production is reliant on a high year BlackRock, the world’s biggest ment will be maintaining the status quo. break-even oil price – between $70 and fund manager, announced its own Controlling costs is easier said $100, a 20% increase since just 2011. collaboration with London’s FTSE group than done. Undoubtedly the world During the same period the average Brent and it is rumored that investors as large will continue to need oil and gas, but price has actually dropped approximately as Norway’s Sovereign Wealth Fund are upstream companies are looking less than $5. Over the last 30 years, companies have considering divestment from the sector. comfortable. Inevitably they will continue become used to an average cash return of In response, the oil majors have created to face challenging questions from around 11% but levels are now below this, a buyers’ market with a mass sell-off of investors for the foreseeable future. forcing companies to consider whether more than $300bn of assets, as well as a Nikki Jones they can generate sufficient funds to Energy is GDP and energy Shares of primary energy service existing dividend and investment gradually commitments. Trillion $2012 Billion toe decoupling In an economist’s ideal world, oil 220 44 50% from prices should rise. However, they have Oil economic GDP growth. been remarkably stable over the last two 40% 170 34 BP Energy Outlook 2035 years, as US shale production has filled Coal some of the demand gap. Even if prices 30% do rise, companies face the conundrum 120 24 that a level much above $100 appears 20% Gas to be counterproductive. There is a 70 14 10% limit to what even OECD consumers Energy Hydro can bear and, as the price spike of 2008 (RHS) Nuclear Renewables* 20 4 0% demonstrated, demand from marginal 1965 2000 2035 1965 2000 2035 consumers – those that have some *Includes biofuels

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MultiClient A Clearer Image Marine Contract Imaging & Engineering Operations www.pgs.com/Triton Update Indonesia: New Regime Creates Expectations What effect will the new modernizing president have on the oil and gas industry in Indonesia?

Indonesian presidential elections held on July 9, 2014 saw Joko The opportunities are clearly there. The Indonesian Petroleum Widodo, leader of the Indonesian Democratic Party of Struggle, Association (IPA) has forecast that exploration activity must be declared the winner, starting his five-year term as leader of the three times the current level for Indonesia to see a significant world’s third-largest democracy on October 20. The softly- difference in its reserves and production. The IPA and others spoken former furniture exporter is the country’s first president have argued that with most of the reserves now located in to come from outside the political and military elite and as such frontier and more difficult areas, investors would benefit from he will be like no other leader the country has had. In short, his a higher production split and a more streamlined regulatory win signifies the maturity of democracy in Indonesia. Millions procedure. Consequently it has proposed that the government are eager to see him deliver on promised reform but just how give authority to one single body, the Energy Ministry, to the new administration sets about managing the country’s discuss the fiscal regime and production split with investors. energy needs, against slowing economic growth, infrastructural A growing number of politicians are keen to see domestic deficiencies and a longstanding battle against corruption, will firms develop a more significant role in the oil and gas sector. be crucial. Risks from adverse climate conditions are high and Certainly, if there are moves towards economic nationalism, earthquakes, volcanic eruptions, landslides, and tsunamis have national oil company Pertamina’s role should be expected to the potential to severely damage energy infrastructure. grow, domestic market obligations will increase and new oil and gas laws will likely favor domestic firms. Pertamina currently Election Promises lacks the capability to develop technically complex deepwater In his election campaign Widodo promised to pursue energy projects and as such foreign investment will be needed; this policies that are oriented towards energy sovereignty and self- will require reasonable access and attractive incentives. But if sufficiency, suggesting that the overall economic policy, as well economic nationalists push policy in the direction of expanding as energy strategy, will lean towards economic nationalism. He the national oil company’s role into technically complex areas, also stated that revisions will be made to oil and gas regulation to international players will have limited opportunity. be in accordance with Article 33 of the Indonesian Constitution Ken White to exert greater control over Indonesia’s energy sources. More Joko Widodo will become Indonesian President in October 2014. His challenging is the proposal to reform the current energy subsidy election is widely seen as reflecting popular voter support for new, ‘clean’ system, which is costing the government some US$ 30 billion a leaders rather than the old, corrupt style of politics in Indonesia. year and is now reaching a critical condition. The subsidy exceeds the combined expenditures on health, education, defense and social protection, but its removal will be politically difficult to accomplish and has in the past met with fierce resistance from the masses and opportunistic opposition parties. Widodo proposes a reallocation of the budget devoted to fuel subsidies to other sectors, primarily natural gas infrastructure development and exploitation, to lessen the burden on the state budget and the country’s dependency on imported oil. He has also proposed to formulate a strategic reserve to ensure long-term energy security, enhance domestic oil production and introduce new investment schemes to encourage investor participation. Experience suggests that any attempt to cut subsidies needs to be accompanied by a public-education campaign and a clear timetable for gradual price increases; it would be a mistake to expect too much too fast. For the moment in Indonesia, there seems to be a chance to accelerate reform. It is an opportunity not to be missed.

Opportunities, But Who For? Prospectivity is not an issue; Indonesia has 22 currently unexplored basins, 15 which have been drilled but no hydrocarbons found yet and seven basins where hydrocarbons have been found but have not yet been brought into production.

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Nantes, France Houston, USA [email protected] [email protected] www.sercel.com ANYWHERE. ANYTIME. EVERYTIME. Update China Seeks More Gas With its vast shale gas resources proving harder to access than anticipated, China is looking to Russian gas to satisfy its rising demand JANE WHALEY China is believed to hold the world’s these resources. Shell and Hess Corp largest technically recoverable reserves are the only foreign firms to have signed of shale gas – a massive total of 1,115 production-sharing contracts to date. Tcf, according to the US Energy Information Agency (EIA). Compare Deal with Russia that to the next in the ‘league table’, For many years China’s huge coal Argentina, which can only boast 802 reserves have meant that demand Tcfg. China had therefore hoped to for natural gas has been traditionally emulate the ‘shale gale’ of the United low, but it has been increasing as the States and had predicted that by 2020 government seeks to move to cleaner it would be producing between 2 and 3 fuels. The EIA’s International Energy Tcf of shale gas per year. outlook has estimated that demand will its imports from central Asia. But with However, after several years of increase from 5.2 Tcf in 2012 to 17.5 Tcf tensions between Russia and the EU and exploration and the drilling of a by 2040. the US increasing and the imposition of number of wells, only one large field As shale gas will take longer than sanctions, a diversification of gas exports has been found; Fuling in south-west initially anticipated to come to the from Europe to China became more Sichuan, which is reported to have market, China has turned to its attractive to the Russians and a deal was total proven reserves of about 74 Tcfg. neighbor and largest trading partner, struck. The contract links the natural The operator, Sinopec, expects annual Russia, to fill the gap. In May this year, gas price to international crude oil prices production from the field to reach about Russia’s biggest gas company, Gazprom, and operates as a take-or-pay scheme, 60 Bcfg by the end of this year and is signed a deal to supply CNPC with gas so CNPC must pay for the contracted planning to produce 353 Bcfg a year by from Eastern Siberia. Under the first natural gas even if it decides not to 2017. But this will not be sufficient to phase of the 30-year contract, Russia receive it. reach the country’s ambitious targets, will supply China with 1.3 Tcfg a year, As Eastern Siberia currently lacks so the Chinese Ministry of Land starting in 2018, and future phases export infrastructure, GazProm is and Resources has downgraded its could increase this volume to as much planning to build a pipeline to China prediction for shale gas production in as 2.1 Tcf annually. which should be operational by 2020. 2020 to 1.06 Tcfg. The two countries have actually been This will also take East Siberian gas The main issue for Chinese in negotiation for many years, with the to an LNG plant in Russia; as well as exploration for shale gas, one it shares price being the main obstacle. Russia selling gas to China, Russia is hoping with many other countries trying to had wanted to use sales contracts in that this deal will help it become a access their unconventional resources, the EU as a benchmark price, while bigger player in the lucrative Asian LNG is that the geology in the most China proposed a lower price, based on market. prospective areas is very complex Sources: U.S. Energy Information Administration, International Energy Outlook 2013, IHS Energy, and challenging. The Sichuan Eastern Bloc Research. region, for example, is highly faulted and also mountainous, making Chinese natural gas supply mix (2012–40) exploration difficult and considerably trillion cubic feet 18 adding to costs. In addition, there LNG imports and is little incentive for international 16 3.1 3.8 other contracts companies to participate in shale 14 1.3 pipeline imports 1.3 from Russia gas exploration in the country. The 12 1.6 pipeline imports 2.3 from Turkmenistan two main Chinese companies, China 10 6.3 National Petroleum Corporation 8 (CNPC) and Sinopec, hold the 6 0.7 10.1 domestic production most prospective blocks, with those 4 0.7 offered to independent firms by the 2 3.8 Ministry being of poorer quality. 0 This also means that there is less China supply Increased Turkmenistan Russia- Additional China supply foreign expertise coming into the 2012 domestic deal China LNG & other 2040 country to help the Chinese develop production gas deal contracts

14 GEOExPro September 2014 SeaBird Exploration Marine Seismic Acquisition

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www.sbexp.com Licensing Opportunities Diverse and Difficult Environments Feature Strongly KEN WHITE Hungary Philippines The Ministry for National Development and the Hungarian Mining The Fifth Licensing Round, PECR V, comprising 11 blocks Office launched a bid round for six hydrocarbon prospecting, with a total area of more than 47,000 km2, was launched on exploration and production concessions on May 9, 2014. Five of these May 9, 2014. The deadline for applications is February 27, are located in eastern Hungary and one in the western part of the 2015. With the exception of Area 1 (onshore/offshore) and country. Closing date for the submission of bids is October 1, 2014 and Area 2 (onshore), the blocks are situated offshore, with four hydrocarbon concessions will have a duration of 20 years from signing in the West Luzon region, three in East Palawan, two in West of the contract. This can be extended once, without a further call for Masbate/IloIlo and one in each of the Southeast Luzon and tenders, for a maximum of half of its original duration and only as long Recto Bank. as the concession holder has complied with all the obligations agreed With China claiming virtually all of the South China Sea, a in the contract. The winning bidder has 60 days (with an extension of likely flash point is Block 7 on the Recto Bank. The Philippines an additional 60 days) in which to negotiate the concession agreement, Department of Energy, which is playing down the issue as in its after which it must establish a concession company in Hungary within opinion the area lies within the country’s Exclusive Economic 90 days in which it will have majority control. Zone, claims the tract has a resource potential of 165 MMbo Despite the industry having provided constructive feedback on the and 3.5 Tcfg. The disputed Recto Bank (or Reed Bank as it is also 2013 Bid Round, which received a muted response, it seems that the known) is estimated to have the potential for 5.4 Bbo and 55.1 fiscal terms and conditions have been carried over, so it is likely that Tcfg according to the US Energy Information Administration. the success of the 2014 round will further depend on strong positives In an August 2012 report the IMF stated: “the Philippine emerging from the geological studies to be undertaken by potential petroleum industry may have significant potential in the bidders. disputed area of the South China Sea Basin, which is adjacent While Hungary’s oil production looks set to continue its long- to the Northwest Palawan Basin.” However, given the history of term decline, the domestic gas production outlook is more promising territorial conflict and the subsequent under-exploration of this thanks to improvements in unconventional gas recovery technology. basin, there is little as yet to substantiate this potential.

Equatorial Guinea The 2014 Licensing round was opened by the Ministry of Mines, interested in bidding will have to pre-qualify, except for those Industry, and Energy on July 1, 2014. It comprises 10 blocks already active in Equatorial Guinea. (EG-11 to EG-20) that are offered for competitive bidding and Corruption, oppression and mismanagement have not stopped four other blocks for direct negotiation (EG-07 to EG-10). All international investors from establishing a presence in the are located in highly prospective areas including the distal parts country, which is believed to have good prospects for further of the Niger Delta Basin system, the Rio Muni Basin, and the hydrocarbon discoveries. Oil production has been in decline Douala Basin. From the four blocks open for direct negotiation: since 2005, due in part to the ageing of the Zafiro field but also EG-07 contains the Langosta gas condensate discovery; EG-08 because of the lack of exploration. Foreign oil executives and is adjacent to Noble’s productive Alen field; EG-09 is south of diplomats also blame mismanagement by GEPetrol, which failed the producing Aseng oil and gas field; and EG-10 is adjacent to bring in new companies to explore, but this changed after the to GEPetrol’s Block P development area. The license round is Ministry of Oil took over responsibility for granting licenses scheduled to close on September 30, 2014 and all companies from GEPetrol, rebuilding trust with foreign groups.

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Now Explore A Minute to Read… News from around the world

Reducing Cost of OBS Magseis During the last two years, the Norwegian geophysical company Magseis ASA has successfully operated seabed seismic surveys in the Barents and North Seas. The company has developed a proprietary system designed to significantly improve the efficiency ofOcean Bottom Seismic (OBS) operations. The OBS-system consists of autonomous sensors deployed on the seabed and integrated in a steel cable, with a depth range up to 3,000m and enough power to last up to 50 days recording time. The flexible and robust system has ensured successful deployment over seabed obstructions such as anchor chains and subsea pipelines. On the Snøhvit and Albatross fields, the vessel Artemis Athene operated safely in rough Arctic seas with wave heights up to six meters. The management and staff have extensive experience within geology, geophysics and marine seismic operations. An power life of miniaturized autonomous nodes. Magseis’ vision experienced team of technology developers has taken a huge is to address the oil and gas industry’s need for improved leap ahead of traditional thinking within OBS, developing the imaging solutions by reducing the cost of OBS to a level that ability to efficiently deploy large spreads, as well as expand the will enable widespread industry adoption. Survey in Exciting Frontier The Southern Porcupine Basin, which lies offIreland ’s south-west coast, is underexplored, but has shown clear petroleum prospectivity and is an exciting frontier area. In July Polarcus commenced a 4,400 km2 RIGHTBAND™ Polarcus 3D multi-client survey of the area, which will be the largest-ever 3D multi-client survey offshore Ireland. The multi-client project is being acquired in collaboration with ION GeoVentures and GeoPartners and is supported by industry prefunding from Providence Resources. The survey will be undertaken by Polarcus Amani, one of the largest vessels in the company’s fleet, which will tow a 1,350m ultra-wide deep-tow spread comprising ten 8,000m solid streamers. The data will be processed by ION GXT through a WiBand™ workflow to deliver a full broadband deliverable to the industry. Final data products Mobilizing Polarcus Amani in Cork, southern Ireland: L to R: John O’Sullivan, will be available early in 2015 for companies seeking to Technical Director, Providence Resources; Rear Admiral Mark Mellett, Defence participate in the 2015 Irish Atlantic Margin Oil and Gas Forces Ireland; Peter Rigg, Chairman Polarcus; Pat Rabbitte T.D., Minister for Exploration Licensing Round. Communications, Energy and Natural Resources Ireland. Prospectiuni Wins Award For 60 years, Romanian geophysical and geological service This partnership was awarded the ‘Best Education/ company, Prospectiuni, has been in partnership with the Faculty Industry Partnership’ at the 7th annual Getenergy Awards of Geology and Geophysics of the University of Bucharest. An Ceremony, which took place on June 3rd at the Law Society in important aspect of this relationship has been curriculum-based London. Gehrig Schultz, CEO and Chairman of Prospectiuni, fieldwork and training for university students, and 90% of current believes that this long collaboration is a prime example of how geophysicists at Prospectiuni have attended them – often the universities and organizations can work together to create a first contact many university students have with practical applied stronger industry for everyone. Victor Mocanu, of the Faculty geosciences. The hands-on training through field visits lays a of Geology and Geophysics, added that: “this partnership foundation for the geophysical methods taught at the faculty, not only develops future industry-defining geophysicists, but consolidates theoretical knowledge acquired in the university also contributes to further developing our knowledge of the and provides valuable practical knowledge. natural resources potential in Romania”.

18 GEOExPro September 2014 Full service marine geophysical company

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Bergen Houston London Oslo Rio de Janeiro Singapore A Minute to Read… News from around the world Landmark Acquires Neftex In June Landmark Software and Services, a Halliburton

company, acquired Neftex Petroleum Consultants Neftex Limited, a UK-based geoscience company specializing in sequence stratigraphy-based products and consulting for subsurface risk reduction. Its flagship product is the Neftex Earth Model, which integrates millions of data points to deliver a wide-ranging global overview of the geological history and resource development of the Earth. This consistent 4D digital model of the subsurface is driven by a unique and proprietary global sequence stratigraphy framework, which allows geoscientists for the first time to use a single global platform to search, discover, analyze and integrate geoscience data and interpretations. stratigraphic model and delivered instantly for any region Landmark believes that the integration of data and in the world. This will in turn improve the ability of oil interpretations from the Neftex Earth Model with companies to explore more prospects faster, and obtain its DecisionSpace® platform will result in a digital subsurface insight to better predict the probability of subsurface representation that is uniquely tied to one drilling success. Shale Oil Estimates Slashed In a move that could have major implications for California, from Monterey Shale oil would result in millions more jobs and the US Energy Information Administration (EIA) billions of dollars in tax, which would have alleviated some of has drastically reduced its estimate of recoverable oil in the problems that have beset the state’s economy in recent years. California’s Miocene Monterey shale formation. In 2011 it However, the total oil in place for the Monterey Shale, which is a predicted that the formation held 13.7 Bbo, making it the bio-siliceous, organic-rich sediment, is 400 Bbo, so there is plenty largest source of recoverable shale oil in the US, but in its of potential there when the technology finally catches up. most recent estimate puts it at just 0.6 Bbo – a reduction of over 95%. The volume was probably originally overestimated because the calculation was made by applying production scenarios from the more geologically straightforward Bakken Shale to the complexly folded and faulted Monterey, and as further analysis was undertaken, it became apparent that the estimate was over-optimistic. The costs involved in fracking the Monterey make much of the resource inaccessible at the moment, although a number of companies holding acreage are continuing to study ways of producing the oil. Some Californians had hoped that the predicted bonanza Jane WhaleyJane

The Monterey shale play is the primary source rock for the conventional oil reservoirs found in much of southern California.

20 GEOExPro September 2014

Cover Story – Geo Tourism Lakagigar Catastrophe & Climate Change

Miguel Ángel Caja took the When the Laki Fissure opened on June 8, 1783, the hot, rising magma mixed with wonderful cover photo, which groundwater and turned almost instantly to steam, causing explosions of water, ash, gases and volcanic bombs. Over the next eight months 130 craters appeared shows the 25 km-long row and, although it was less explosive, the lava continued to flow, filling a gorge nearly of craters of Lakagigar, in 400m deep and covering an area of 565 km2. About 90% of this magma erupted southern Iceland. Not only is in the first five months, half of it appearing in the 48 days after the first explosion, flowing as quickly as 15–17 km/day, fast for a basaltic lava flow. this a unique geological site By the time the eruptions had finished in February 1984, about 15 km3 of with a spectacular landscape, it magma had been extruded, making it what is believed to be the most prolific also tells a story of catastrophe eruption recorded in historical times, although there are many events to rival it and climate change which still in geological history. resonates today. Major Consequences It is estimated that a fifth of the population of Iceland – 10,000 men, women and JANE WHALEY children – died as a result of these eruptions, along with 82% of the country’s

From Laki volcano one can enjoy spectacular views of the more than 100 craters of Lakagigar, a 25 km-long fissure in the earth. Miguel Ángel Caja Ángel Miguel

22 GEOExPro September 2014 M sheep, 53% of its cattle and 77% of its horses. Some id -A tl people were caught up by the lava flow, or were an ti c R North American Plate id killed by ash falls or superheated gas pouring from ge the craters, but the majority of the deaths were a e n o Eurasian Plate Z consequence of the vast quantities of toxic gases NASA/Bruce Winslade t

R which were thrown many kilometres into the

r e air. These contained an estimated 8 million tons h t

o of hydrogen fluoride and 120 million tons of sulfur N dioxide, killing and poisoning vegetation and leading to a three-year famine in Iceland. But the effects were felt far beyond Iceland. ne Zo Vatnajökull t if These huge ash clouds and their associated ‘acid’ R rn e Reykjavik te n s Zo rain blanketed first Europe in a thick haze, and e t Lakagigar W if R then spread via the jet stream across the whole rn e <3.3 Ma volcanics e st dg a Ri E northern hemisphere; by early July they had ic Eyja allajökull nt Active lift zone tla 50 km reportedly reached China. The summer of 1783 in -A id Focus of mantle plume Europe was noted as unpleasantly hot (as it was in M Iceland, where malaria broke out) and possibly as many as 23,000 people died in Britain from inhaling sulfur And the consequences were felt even further afield, with dioxide. This was followed by a very cold winter throughout North America experiencing exceptional cold in 1784, Europe, with severe flooding resulting from the eventual when even the Mississippi froze in New Orleans. The raised thaw, and this cycle of extreme weather conditions continued temperatures of the sea relative to the land caused the for several years, causing crop failures, poverty and famine. monsoons to weaken in Asia and Africa. Possibly a million It is suggested that repercussions from the climatic vagaries people died of famine in Japan, while a sixth of Egypt’s caused by Laki may even have helped trigger the French population succumbed to famine or plague when the Nile did Revolution and other social upheavals in the late 18th century. not flood fully in 1784.

GEOExPro September 2014 23 Cover Story – Geo Tourism Miguel Ángel Caja Ángel Miguel

A Visit to Lakagigar Despite its violent history and the catastrophic consequences, Lakagigar is now a peaceful though slightly eerie landscape of black lava and fuzzy green Icelandic moss. It is a fragile environment, extremely sensitive to intrusion, and is protected as part of the Vatnajökul National Park. Our photo competition winner Miguel and his wife were lucky enough to visit this amazing location during their trip to Iceland and have shared with us their impressions of traveling around Lakagigar. “Our first stop is Fagrifoss, a waterfall that drops 20m into a canyon. Seen from above, it seems as though the walls are about to collapse and although there is a cord designed to prevent you from approaching the cliff (quite unusual in Iceland, where they usually prefer free access), everyone goes to the edge to look at the drop. “The scenery is breathtaking – and this is just the start of the route! “Although there is no sunshine, at least it does not rain, and the clouds give an even more dramatic look to the landscape, which is composed of black sand, rock formations and striking moss so green that it Miguel Ángel Caja Ángel Miguel almost hurts your eyes. Fagrifoss means beautiful waterfall in Icelandic. “The track is slow, and needs a 4X4, with many stones, potholes, hills and streams – but worth it, not only for what awaits us at the end, but as part of the experience itself. We reach the edge of Eldhraun, the lava field that extends from Lakagigar, keeping to the black ash path. All around us is a beautiful carpet of green and squishy moss, with small islands of black ash. “Eventually, we arrive at the foot of Laki volcano. We park the car in the specified area and climb the steep slope. It’s hard work but the views from the top are well worth the effort: a long line of Miguel Ángel Caja Ángel Miguel craters, getting smaller and smaller, Tjarnargígur is the only water-filled crater in the Lakagigar line of volcanos. stretching to the horizon. We can

24 GEOExPro September 2014 BGP BGP is a leading geophysical contractor, providing geophysical services to its clients worldwide. BGP now has 51 branches and offices, 65 seismic crews, 6 vessels and 14 data processing and interpretation centers overseas. The key business activities of BGP include: * Onshore, offshore, TZ seismic data acquisition; *Geophysical research and software development; * Seismic data processing and interpretation; *GME and geo-chemical surveys; * Reservoir geophysics; *Geophysical equipment manufacturing; * Borehole seismic surveys and micro-seismic; *Multi-client services.

Tel: 86-10-81201850 / 81201469 Fax: 86-10-81201392 BGP Inc E-mail: [email protected] http://www.bgp.com.cn Cover Story – Geo Tourism

Unique Volcanic Coincidence Volcanos occur either along the boundaries of tectonic rise closer to the surface than usual beneath Iceland, plates or above ‘hot spots’ where magma reaches although there is a certain amount of debate as to unusually far upwards from the Earth’s mantle to its whether this is a true hot spot, originating at depth, or crust – and Iceland is thought to be the only place in whether it has shallower origins, meaning that all the the world where these conditions coincide, making it volcanicity can be attributed to rifting, aided by locally exceptionally volcanically active. excessive melting. Iceland lies on the Mid-Atlantic Ridge, the divergent Iceland is entirely a product of the magma welling up margin where the North American and Eurasian plates from deep within the Earth The oldest rocks date from are slowly pulling apart, and it is one of the few places the Neogene and are only about 20 million years old. The where this process can be studied above sea level. The country has 30 active systems, 13 of which have erupted plates began separating about 60 million years ago and since men first inhabited it 1,140 years ago, and two continue to move apart at a rate of about 2.5 cm a year, major rifting zones. It is also subject to other instances allowing magma to emerge at the surface. In addition, of tectonic activity associated with plate margins, such as a hot, narrow plume of molten material is thought to earthquakes, hot springs and geysers. see small trails surrounding the nearby craters with tiny eruption of Iceland’s Eyjafjallajökull had in 2010, it is salient to figures walking on them. One can appreciate from here wonder how the modern world would cope with another event the vast size of the lava field and it is easy to imagine the like Laki, if – or more correctly, when – it should occur. destruction that resulted from the eruption. For a recent analysis of the story of Laki and its “We return to the car and drive to the crater of implications, try Island On Fire by Alexandra Witze and Jeff Tjarnargígur, to do a little hiking along an ash trail. The Kanipe, 2013, published by Profile Books. crater walls, floor and everything else are Another view from Laki volcano: the Varmárdalur valley covered with lava and volcanic ashes. all mossy and we now fully understand how fragile it is, and how easy it is to damage it. We wander among the lava, admiring the surreal environment around us, knowing

that nowhere else on Earth can you find Caja Ángel Miguel such a place.”

Looking to the Future? The Laki Fissure Eruption is well documented by people who experienced it first hand, from local Pastor Jón Steingrímsson, who kept a diary as the lava threatened to engulf his church, to naturalist Gilbert White in England and Benjamin Franklin in Paris. As a result, it is frequently studied and cited during discussions on the potential repercussions of climate change. Seeing the dramatic effect which the ash fall from the much smaller

GEOExPro 5th Anniversary Photo Competition Winner Miguel Ángel Caja is a geoscientist traveling around the world, especially and researcher with over 15 years of to outstanding geological places like Ruth GuevaraRuth experience in the field of clastic and Iceland. I like any way of traveling, but I carbonate diagenesis linked to reservoir believe that road trips are one of the best quality evolution. Based in Spain, he was ways to cover large areas and discover a teacher and researcher at the Madrid nature’s treasures away from the most Complutense University and Barcelona touristic routes.” University and is currently involved in the You can read more about Miguel’s coordination of the Geology lab research travels in Iceland in the blog he wrote activities at the Repsol Technology Center. with his wife at www.imawanderluster. He says, “I have a special interest in blogspot.com.

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Above, Below and Beyond neosgeo.com Technology

Technology Driving JOHN FIERSTIEN Unconventional Exploration The oil and gas industry is changing more and faster than ever. A historic shift is underway, as each day brings new technology and techniques. We bring you a quick round-up of recent developments.

The history of unconventional shale and infrastructure. Beyond North result of unconventional oil and gas production is a short one, with the America, conventional reservoirs will exploration, along with job titles and first development of the Barnett only become increasingly more difficult responsibilities. The fields of geology, in 2006. However, the technology that to drill in more hostile environments geophysics and engineering will has come together to make it happen and politically unstable regions. As a merge into a more holistic discipline is quite old. The first true horizontal result, the industry will be looking at as engineers begin to look at more oil well was drilled in 1939 in Morgan unconventional shales as one of the geophysical and geological data and County, Ohio (although there is some more stable areas of development for geologists and geophysics begin paying debate that the first horizontal well new oil and gas reserves. The quickest closer attention to engineering data. may have been drilled in 1929), and areas to capitalize on unconventional the first commercially successful use plays will be those which have a similar Digital Versus Paper of hydraulic fracturing techniques infrastructure to the US or can quickly The world has gone digital and the oil was in 1949. Despite the long history develop and bring them to functionality. and gas industry is no exception. Over of these technologies, the original As the globalization of unconven the past 25 years, the industry has creators would hardly recognize them tional plays moves forward, we can been transformed, moving everything today. The use of downhole motors and expect advances in geophysics with digital. Seismic started the digital multiple stages for hydraulic fracturing microseismic and other conventional revolution in oil and gas but the have brought us a long way in terms of seismic techniques. Developments in original records were on paper and the accuracy, speed and usability. treating and completing horizontally geophysicists of the day worked with The United States and Canada drilled wells are being made every colored pencils marking the important are uniquely positioned to lead the day, and soon this will translate into structural horizons. Even the all- development of unconventional plays standard practices. important map was a paper product because of the availability of equipment Companies will also change as a that took days to be hand drafted.

Density field interpretation of a multi-stage fracture job can be used to calculate fracture stage geobodies for thickness, area and volume to determine the effectiveness of fracture jobs – one of the many ways in which advancing technology is facilitating the production of unconventional resources. Drillinginfo

28 GEOExPro September 2014 Today, paper seismic along with the drafted maps are all but gone, and most companies get their log information Drillinginfo digitally as LAS information so that it can be quickly analyzed and distributed. WITSML (Wellsite Information Transfer Standard Markup Language) is also becoming a standard and virtually any data that comes from a rig can now be sent digitally. New technology will make conversion to digital easier and more cost effective, which will make searching for these treasures easier and faster. Organizations with access to the best digital data and searching algorithms will have a distinct A quick look at the current drilling activity in the US provides a comprehensive overview of where advantage. This doesn’t mean just scout the activity is today. tickets but will include paper logs, core photos, production on paper and and implementation has been restricted types of systems will increase in usage a host of information that is currently to large wells or remote locations. as the industry drills with closer stored in log libraries and corporate Today, with cost effective cell and radio spacing and continues to have problems warehouses. technology and high level compression replacing older workers who will be techniques, we are finally starting to see retiring in the next few years. Seismic and Microseismic higher adoption of this technology. Most seismic interpretation packages In addition, the ability to monitor Merger of Data and Analysis on the market today are 20 to 30 years production and tank levels and remotely Data from every facet of the oil and old. They have become difficult to control valves and other equipment gas industry is being collected at maintain and will become harder to is promising to make wells more ever increasing rates, and companies enhance in the future. As a result, the productive and efficient. It also equips are making significant investments disciplines are beginning to merge. operators with the tools needed to in managing the vast amounts and Engineers are paying more attention quickly react to problems that will extreme variability of data types. to microseismic, as it can, for example, make operations safer and reduce Unconventional wells are also tell them where and where not to environmental impact. increasing demand for more efficient fracture, as shown on the example on Bluetick, Honeywell and other methods of managing and analyzing the page opposite. Real time collection companies are currently producing big data, as they are more complicated and analysis will allow engineers to automated systems that control and expensive than they were for make quick decisions that will save wellhead operations remotely. These previous generations of conventional money and increase production. 90 day permit activity or other ‘heat maps’ layered with well completions having fracture detail can New seismic attributes are being further qualify active areas needing detailed analysis. invented all the time that offer a better and clearer picture into the earth’s interior. Attributes often provide a filter or lens that better visualize some geological feature such as faulting, stratigraphy, or reservoir fluids. The trend of developing new attributes will continue and systems will begin generating them automatically, providing users with a specific lens that will allow them to interpret information more clearly and precisely than ever before.

The Digital Oil Field There has been much discussion over the past ten years regarding the digital Drillinginfo oil field. To date, the cost has been high

GEOExPro September 2014 29 Technology drillers. As a result, organizations of all sizes are now taking advantage of big data in an effort to maximize company resources such as time, capital and talent. High- performance analytics hold the promise of synthetizing complex big data into more manageable results that support better decisions. The combination of increased data availability and advanced analytics has leveled the playing field between large and small companies by allowing them to focus Drillinginfo on the problem of finding 3D wellbore planning is enhanced with the generation of seismic attribute volumes and fault probabilities in FaultScan™. and producing oil and gas – not moving data from one system to consultants and colleagues across the gas industry. The insights gained from another. internet – will change how and with new technology and techniques will Predictive analytics are becoming whom we work. We’ll soon have the enable more effective decision-making better each year. We have always ability to communicate using words, – and deliver unprecedented results. It had systems that help predict where voice and video with anyone working will also lead to new opportunities for hydrocarbons are, where the water is, on the same project – whether they are exploration and production, bolstering where the fault is and so forth – those in the next office or on the other side economies and revolutionizing our continue to get better. In the past few of the world. These collaborative tools energy future. years we have also seen szystems that will be integrated into the technology John Fierstien is vice president of product will predict when you might have we are currently using, making it management at Drillinginfo, a SaaS and drilling problems, by learning from possible to not only find answers using data analytics company that enhances past events on other wells and then our own ideas but also ideas from a strategic decision-making by equipping the predicting the future – saving operators range of experts across the globe. oil and gas industry with cloud-based tools millions of dollars in drilling costs. It’s an exciting time for the oil and and services. Prescriptive analytics are really new It is now possible to the industry but will begin showing to predict up in end user applications. These will production be systems that help maximize your sweetspots return on investment. For example, from recent production using when given certain shale characteristics any combination from microseismic and other of geological parameters, companies will be able to and engineering determine what is the most effective parameters, including and efficient way to complete a well. reservoir thickness, mass Collaboration Tools proppant and One of the most impactful things we horizontal well length. will be seeing over the next few years is the use of collaboration tools. We can currently share files and data across a single database but we have not been able to share thoughts, ideas and words without the use of an external system such as e-mail or a presentation manager. Collaboration – not just within a company but with partners, Drillinginfo

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Possibly best known for the endowed Chairs and Professorships at Encyclopedic Dictionary of Exploration the University, proves his influence is Geophysics, first published in 1973, Bob truly global. Sheriff’s accomplishments go literally Never to the ends of the earth – from his Getting Started family’s travels to his contributions to After graduating with degrees in physics geophysics and education. and chemistry, young Bob Sheriff entered Now in its fourth edition, the graduate school at Ohio State to study Hold encyclopedic dictionary has remained physics. The year was 1943 when the one of the Society of Exploration US was deeply involved in World War Geophysics’ (SEG) best sellers. It is a II. Bob was soon to be out of university valuable and comprehensive reference deferments necessary to stay in school that is a must to just about anyone in so he interviewed with The Manhattan Back the oil and gas business. This alone Project at Oak Ridge, Tennessee, where he Dr. Robert E. Sheriff learned would have been a bequest that would landed a job. “The pilot plant was manned have assured Bob’s place in the upper by a bunch of physics graduate students early in his career “to never echelon of the science. However, from all over the country,” says Bob. “We withhold information his contributions to geophysics and talked freely among ourselves… [making] or ideas for later use,” seismology, teaching at the University of my Oak Ridge experience magnificent as Houston and short courses around the we taught each other.” leaving a lasting legacy to world, writing text books and articles, Working at Oak Ridge also brought his family, the geophysics have all made Dr. Sheriff a household Bob another life-changing experience. community, and our name to both students and professionals A sister of a pilot plant colleague in geophysics. Adding to this, the Sheriff joined The Manhattan Project team society. Scholarships for the SEG Foundation as a chemist. Bob was introduced to that finances foreign graduate students the new employee and they “hit it off THOMAS SMITH at the University of Houston, as well as beautifully”. Bob and Margaret, the

Robert Sheriff sharing his expertise in seismic stratigraphy. Robert Sheriff Collection Robert Sheriff

32 GEOExPro September 2014 chemist, were soon married in 1945. The couple stayed at Oak Ridge until the spring of 1946 before returning to Ohio State University to complete graduate studies. Bob was able to teach physics classes while in graduate school Collection Robert Sheriff until he received a scholarship from the National Science Foundation. Margaret worked on a geology degree. While still a student, Bob interviewed with Chevron and received an offer for a job at their La Habra facility (a technical center that operated from 1948 until it was closed in 1999) in Orange County, California. Anne, their first of six children, arrived in 1950 and they made their move to “the mountains and a sea shore” as Margaret put it. Being from Kansas, California had quite the appeal and she thought they were “set for life”. Little did she know where their future Bob and Margaret traveled the world throughout his career. They are pictured here in Turkey in 1989. adventures would bring them… child. Bob came back for the birth and Bob also used it as a recruiting tool Becoming a Wandering ‘Geo’physicist when number six, Linda, was nine weeks when visiting Australian universities. “I knew nothing about geophysics [when old, Margaret and the family made the The glossary was distributed to other accepting Chevron’s job offer],” says move to Trinidad. Two years later, they companies that were part of the Bob. “Dr. Allen Reilly, the manager of all moved on to Perth, Australia. Australian joint operation. One of those the La Habra facility, was just starting companies was Shell, which distributed geophysics research. He told me it was “I had always liked teaching, which it throughout their organization. easier to teach geology to a physicist was really my first love.” The Sheriff family returned to the than physics to a geologist. This is how I States in 1966 and settled again in New became a geophysicist.” Bob joined SEG The transfer to Australia came with Orleans. By then, one of the past SEG at that time “to get their magazine and an added benefit for the Sheriff family – presidents had received a copy of the learn geophysics” and has been an active a six-week vacation plus a week of travel geophysical glossary that Shell had member ever since. time. “Between company geophysics distributed and recommended it to the During his early days at Chevron, courses and visiting our offices along SEG membership. “I was asked to update Bob was eager to learn all he could the way, I managed to stretch our and expand the glossary,” says Bob, “but about geophysics, including how things vacations to three months,” says Bob. I was concerned about Chevron releasing were done in the field. This would Consequently they were able to plan this update. Well, the current president lead to the start of a yearning to see some very extensive trips to all corners of SEG was Neal Smith, also a Chevron the world. After a year and a half of of the world. employee, who thought ‘releasing it to assigned projects at La Habra, he was After over five years there, Bob SEG would be good for the company’. transferred to New Orleans where he requested a transfer back to the United I reported this to my manager and it worked with a geophysicist who was on States. “Our children knew a lot about was first published as one of the issues Chevron’s research committee. They the rest of the world but little about the of Geophysics magazine.” Bob received traveled to geophysical operations all US, so we figured it was time to move the Kauffman Gold Medal, which is over the country. “I got to meet lots back,” Bob recalls. awarded for outstanding contributions of important people and see lots of to the advancement of the science situations,” recalls Bob. The ‘Glossary’ is Born of geophysical exploration. The little After transferring back to California, While their time in Australia was filled 30-page glossary had by then grown Bob began supervising seismic work in with traveling adventures, Bob still had to 429 pages in its 4th edition as the foreign locations, mainly Latin America a job to do, which included training and Encyclopedic Dictionary of Applied and the Caribbean, and he spent a familiarizing personnel with new terms Geophysics. considerable amount of time visiting and concepts in geophysics. To fill this these locations. He was then transferred need, he created a 30-page pamphlet A Second Career to Port of Spain, Trinidad. At that time, describing various geophysical terms in While in New Orleans, Bob was Margret was pregnant with their sixth an industry that was evolving quickly. contacted by his old boss, Lloyd

GEOExPro September 2014 33 GEO Profile

Geldart, from La Habra, California, University of Houston. It is wonderful to Sheriff: “…a giant figure in the world of who was teaching at McGill University give deserving students the opportunity exploration geophysics… When I think in Montreal. Bob was asked to review to advance their education. It is one of about Bob, a number of key words pop the chapter on seismic work for a the things I have been very proud of.” up in my mind: kindness, honesty, hard- revised geophysics book series by Bob quit teaching in 2006 but his working, seeking perfection, generosity Eve and Keys. “I told Geldart that the manner of teaching lives on through and wisdom.” chapter was not acceptable because the people he touched along the way. Wouldn’t everyone want such a it did not describe geophysics as it is Hua-Wei Zhou came to the University legacy? done today,” says Bob. “Consequently, of Houston in 1989 partly because Special thanks to Barbara Barnes and I joined a group of authors and wrote of Bob’s influence on exploration Anne Sheriff Makowski for making this the new seismic chapter for the book.” geophysics. He had this to say about Bob profile possible. This would be the start of Bob joining the academic ranks and writing more Postscript geophysical text books. Bob was transferred to Houston While researching for this profile about Robert Sheriff, I felt I got to know in 1970, retiring from Chevron after him rather well. That was until I received a call from Bob’s oldest daughter, 25 years of employment, and went to Anne Sheriff Makowski. She related to me some of her memories of their work with Seiscom Delta. While at travels and of her dad at work. Whether it was climbing the great pyramids of Chevron in Houston, he had joined the Giza or a birthday for the youngest in Paris; joining their father when visiting University of Houston as an adjunct field crews in Australia’s outback; or attending his evening lectures about geophysics professor for four years, foreign lands and cultures – discovery and adventure were their norm while and continued teaching for another growing up. five years during his employment I would love to relate all the stories Anne shared with me; however, one with Seiscom Delta. In 1980, the very of her first stories illuminated the driving force behind the man. While still respected geophysicist, Milton Dobrin, stationed in Trinidad, Bob traveled to Ecuador and heard about a mysterious who had developed the university’s ancient city that was discovered in the mountains of Peru. At that time, it was geophysics program, died suddenly very difficult to travel to this part of South America and there were also strict while jogging in the early morning company rules against such adventures, but Bob had to see it for himself. The hours in Houston. That is when Bob place was Machu Picchu and, as Anne pointed out to me, it was clear very early began his second career in earnest, in his career that he would ‘leave no rock unturned’. His yearning to explore becoming a full tenured professor. and learn about the world, how things worked, and how to put all the pieces Bob not only taught at the together certainly ensured a very successful and productive career. University, but also spent a lot of The entire family adventured together to see and learn about the cultures and world around time teaching short courses for the us. Pictured in Japan in 1965 are (back row from left to right) Margaret, Jeanne, Anne, Rick, American Association of Petroleum and Bob; (front row from left to right) Barbara, Susan, and Linda. Geologists (AAPG) on a number of different subjects. One he is particularly proud of was Seismic Stratigraphy. He had written a paper on the subject, and subsequently a book, and was invited to help teach the course in 1975. He brought this new concept to many skeptical geologists and geophysicists. The project turned out to be a success and was repeated for several years, eventually expanding to four courses a year. Bob taught other courses for different sponsors, especially overseas. “To provide time to teach these courses plus some sightseeing, I often took half- time positions at the university,” recalls Bob. “People were eager to have me teach them and I ran across many good students. That is when Margaret and I endowed the Sheriff Scholarships of the SEG Foundation. It finances two foreign Collection Robert Sheriff graduate students every year at the

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75°0'0"N The Hoop Fault Complex area of the Barents Sea has seen great exploration 74°0'0"N Apollo 74°0'0"N

40°0'0"E success lately. The area offers a condensed Paleozoic and Mesozoic succession 73°0'0"N

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73°0'0"N 39°0'0"E with multiple-interval exploration targets in well-defined structural traps. In 72°0'0"N

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38°0'0"E Hoop Basin: particular, the Jurassic succession in shallow fault blocks has been successful, 71°0'0"N 71°0'0"N

with several light oil discoveries in good reservoirs. The Hoop Fault Complex is 70°0'0"N Drilling success and playground now one of the core areas for the Norwegian 23rd licensing round. 23rd round blocks 70°0'0"N Production licenses Wisting 15°0'0"E 17°0'0"E 19°0'0"E 21°0'0"E 23°0'0"E 25°0'0"E 27°0'0"E 29°0'0"E 31°0'0"E 32°0'0"E 33°0'0"E 34°0'0"E 35°0'0"E 36°0'0"E TGS 3D coverage Location of TGS data in the Barents Sea, Approx. location of P-Cable line Hanssen Mercury highlighting the approximate location of for new exploration methods P-Cable data across 23rd license round blocks. the foldout line in the Hoop Graben.

36 GEOExPro September 2014 GEOExPro September 2014 38 The integration of several data sets will be essential for hydrocarbon exploration in the Hoop BENT KJØLHAMAR, CHRISTOPHER SÆBØ SERCK, Fault Complex area of CAMILLA BROCH PEDERSEN, REIDUN MYKLEBUST, TGS the Barents Sea.

The Hoop Fault Complex has been a focus area for several The most prominent sedimentary features in the Hoop exploration companies since 2009 when the first 3D Fault Complex area are the deltaic deposits of the Triassic, seismic data set covering the area was acquired by TGS. which can be seen as large-scale north-west prograding Five exploration wells have been drilled, resulting in clinoform packages, thinning north-westwards. The most two light oil discoveries in good Jurassic reservoir rocks. westerly position of the paleo-coastline appears to be in The relatively shallow exploration targets make the area the Hoop Fault Complex area for the Klappmyss, Kobbe suitable for geophysical methods other than ‘normal’ 2D and Snadd Formations. Statoil’s Atlantis well, which tested and 3D seismic data. Industry demands higher resolution the Triassic section in a large closure adjacent to the Hoop data, so the large Hoop Fault Complex data set has been Graben, was not successful; the main target was the Middle reprocessed using broadband processing techniques and Triassic Kobbe Formation, but the result was a small P-Cable 2D and 3D seismic is being acquired. gas discovery in thin Upper Triassic sands. An excellent oil-prone marine source rock in the Steinkobbe Member Structural Geology of the Kobbe Formation of the Middle Triassic has been The Hoop Fault Complex has experienced several episodes confirmed by Sintef IKU’s shallow stratigraphic boreholes of faulting. Deep in the section faults cut Carboniferous near the Svalis dome. Large deltaic channel systems of and possibly older strata, while the Triassic, Jurassic and the Upper Triassic Snadd Formation can be seen as bright Cretaceous successions are offset by a younger series of amplitude anomalies on seismic data. More exploration faults trending north-north-east to south-south-west. effort and the use of higher resolution data is needed to These faults and successions make up the characteristic thoroughly explore the Triassic section in this area. Hoop Graben. Overprinting these episodes of faulting, the So far the Jurassic succession has been the most Upper Triassic to the onset of the Cretaceous section has successful for hydrocarbon exploration. The Upper Jurassic also been affected by a late east-west trending fault system. Hekkingen Formation source rock is believed to be mature These are important for the definition of fault-bounded along the flanks of the basins adjacent to the Hoop Fault structural closures in the Jurassic section, which have been Complex. Excellent reservoirs have been confirmed, and targeted in the successful Wisting Central and Hanssen oil has been proven in two recent wells, Wisting Central wells. The different structural styles seen in the Hoop Fault and Hanssen, with oil in Jurassic fault blocks approximately Complex can have major implications for the migration and 500 to 800m below the seabed. Both discoveries were re-migration of hydrocarbons into the shallow structures. supported by bright amplitude anomalies, flat spots and

Potential Reservoir Rocks Interpreted seismic line across the Hoop Graben. Horizons: Blue = Top Jurassic, Purple = Mid Triassic, Red = Top Permian. Post-Eocene erosion has removed a lot of Cretaceous and possibly NW SE younger strata from the Hoop Fault Complex area, with implications for hydrocarbon exploration, as it has made older strata more easily accessible. In certain areas the Permian and possibly the Carboniferous section are shallow enough to be considered exploration targets. Carbonate buildups are possible reservoirs in this section. Carbonate rocks that have experienced subaerial exposure might have developed good secondary porosity. With Lundin’s exploration success on the Gohta prospect further south in the Barents Sea in mind, this is something that should be explored.

GEOExPro September 2014 39 distinct anomalies on CSEM data. Another recent well, Apollo, HANSSEN targeted a Jurassic fault block, but there were no flat spots or positive CSEM anomalies; the well was dry. The recent Mercury well tested Jurassic reservoirs in a CSEM-supported fault block closure, but only a small gas discovery was made. Many structures supported by flat spots, amplitude and CSEM anomalies can be found in the 23rd licensing round blocks and elsewhere in the Hoop Fault Complex area. In the Hoop Graben and the Fingerdjupet sub-basin further west, varying thicknesses of the Lower Cretaceous succession have been preserved. The Cretaceous section can be seen as large clinoforms resulting from south-south-east coastal progradation events. Erosion products from footwall uplift along major faults can be deposited in the basin as good reservoir rocks. Co-display of seismic and CSEM data. The Hanssen oil discovery can be Hoop and Geophysical Methods seen on the right. CSEM data courtesy of EMGS. Increased interest from the industry and recent exploration success has made the Hoop Fault Complex area an area for complex region and one data set alone will not provide all the acquisition of many kinds of geophysical data. Since the first answers. TGS offers a turn-key suite of products for exploration acquisition in 2009, more 3D data has been acquired each year, in this highly prospective area, from micro- to macro-scale. and the TGS multi-client 3D coverage is now over 20,000 km² Long offset 2D and the 20,000 km² of broadband processed 3D and spans from the Stappen High in the west to past the Hoop enables TGS’ clients to understand the regional geology, map Graben in the east. Shallow discoveries and similar leads in the all structural closures, and examine sediments ranging in age Jurassic section call for a better resolution in the seismic data, from Carboniferous or older to Quaternary. It will also give the and by using the TGS Clari-Fi™ processing technique, the 3D opportunity to perform AVO studies on the many leads and data has been de-ghosted and the frequency range of the upper prospects. The shallow Jurassic leads can be examined in the part of the seismic section has nearly been doubled. greatest detail using P-Cable 2D and 3D data, and CSEM will TGS is currently acquiring P-Cable 2D and 3D data in help understand the presence and saturation of hydrocarbons collaboration with WGP-Survey. Acquired using 16 streamers in the structures. Further de-risking of prospects can be with 12.5m streamer separation, the data is extremely high done by examining the results from the seafloor sampling, resolution. The P-Cable data sets have frequencies up to 250 as the transects cover many of the most relevant structures Hz, and provide an excellent image of the reservoirs, fluid in the 23rd licensing round blocks and can give important contacts and migration paths for the Jurassic section. information on fluid phase in charged structures. There are many examples showing that CSEM is a For more information, visit TGS.com valuable geophysical method in the Hoop Fault Complex Comparison between different Hoop data sets – conventional area. Both the Wisting Central and Hanssen discoveries processing, Clari-Fi 2ms Hi-Res reprocessing and P-Cable data. were supported by positive CSEM anomalies, as was the small gas discovery in the Mercury prospect. TGS and HFC - Original processing EMGS have jointly acquired CSEM data in the area. While CSEM anomalies are not all equally easy to understand, many structures with anomalies similar to Wisting Central and Hanssen can be applied for in the 23rd licensing round. TGS and Volcanic Basin Petroleum Research AS are currently conducting seafloor sampling in the Hoop area. The aim of the survey is to characterize the fluid phase (oil vs. gas) HFC - Clari-Fi reprocessing of potentially charged structures. The recovered samples will follow a comprehensive analytical program, including standard seep studies (APT), amplified geochemical imaging (AGI), micro-biological investigations (MicroPro) and biostratigraphy (APT). The results can provide a new insight into the subsurface geology and petroleum systems of the area. The sampling HFC - P-Cable locations are selected based on the re-processed Hoop Fault Complex 3D data set as well as P-Cable data.

Integration of Data Sets Integration of different geophysical and geological data sets is essential for efficient exploration in the Hoop area. It is a

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The Origin of Rock Fractures Rock fractures, like other geologic structures, form by Fracture, gravitational force involving pressure and density changes. These take place due to a variety of tectonic, thermal or fluid pressure processes operating on rocks. Based on their origin, rock fractures may be categorized as: Fracture 1. Tectonic fractures: clusters of joints found in the vicinity of major faults and folds represent brittle deformation in rocks due to tectonic stresses. Motion of global tectonic Everywhere plates is the major cause of tectonic stresses, especially at plate boundaries. 2. Hydraulic fractures: formed by increased pore fluid Part II pressure in a rock body. This process may occur naturally in the subsurface, in the so-called overpressure zones due How and why do fractures to rapid sedimentation rates, thrust loading of rock over sediments, thermal expansion of pore fluid, dewatering occur in rocks? of hydrous minerals (like illite, gypsum and opal), or RASOUL SORKHABI, Ph.D. transformation of kerogen to hydrocarbon (which results in volume increase). Artificial hydraulic fracturing, as in Fractures including joints and faults are commonly found in the stimulation of shale gas, is done by pumping fluids rocks and are important fluid pathways – hence their significance and proppants into the subsurface formation. for petroleum, groundwater, and geothermal resources as well 3. Unloading or pressure-release joints: formed in rocks as hydrothermal circulations within Earth’s deep crust. In the which are brought to the surface by uplift and erosion, first part of this article GEO( ExPro, Vol. 11, No. 3), we looked and therefore the rock cools, shrinks and fractures. at the types, geometry and characteristics of rock fractures. In 4. Exfoliation joints: typically formed in eroded granite this concluding part, we will discuss the origin and mechanics of bodies in which sets of surface-parallel, curved fractures fractures to better understand their occurrence. split the rock dome into onion-like layers or slabs.

Exfoliation joints on the granitic Half Dome, Yosemite National Park, California. Hylgeria, Wikipedia Hylgeria,

42 GEOExPro September 2014 Pressure-release due to the removal of overburden fracture (vertical stress) coupled with some degree of horizontal front (edge) stress play important roles in this type of jointing. 5. Cooling or columnar joints in volcanic rocks: these are Sorkhabi Rasoul produced from the rapid cooling and shrinking of lava as it ascends to earth’s surface.

Fracture Modes fracture surface Based on the relative movement of fracture surfaces, rock Mode I Mode II Mode III fractures are classified into four ‘modes’. (Opening, Tension) (Sliding, Shear) (Tearing, Shear) Mode I fractures are tensile (opening) fractures in which two fracture surfaces move away from each other. Joints are basically Mode I fractures. In contrast, shear fractures involve the relative movement of rock blocks parallel to the fracture surface. Shear fractures may have lengths at the scale of millimeters (microscopic) (called microfaults) or at the scale of centimeters (minor faults); large (meter-length) shear fractures are properly called faults. Shear fractures include Mode II or sliding fractures, in which the relative movement is perpendicular to the Mode IV Hybrid Mode fracture front (as in strike-slip faults), and Mode III or tearing (Closing, Anticrack) (Tension, Shear) mode, in which the relative movement is parallel to the fracture Various ‘modes’ of fractures depending on the relative movement of front (as in dip-slip faults). Hybrid fractures combine both fracture surfaces. tension (Mode I) and shear (Mode II or III) movements. Mode IV or closing fractures are mineral-scale anti-cracks; stylolites all directions; it may be lithostatic stress (a subsurface point (pressure solutions) are typical examples of this mode. under the weight of a rock overburden) or hydrostatic stress (a point enclosed by water). (Note that in some scientific Stress: Principal, Normal and Shear literature, hydrostatic pressure and confining pressure are used Stress (σ) and pressure (P) are both defined as force (F) per as synonyms). Often, however, tectonic forces alter confining unit area (A), and have the unit of pascal. One pascal (Pa) pressures; therefore, stress is not equal in all directions. is one newton per square meter (or 1 kg cm-1 s-2); 100,000 Deviatoric stress is measured as total stress minus mean stress pascal is equal to one bar or 0.98 atmospheres of pressure; one acting upon the rock body. Differential stress is measured as 6 megapascal (MPa or 10 Pa) equals 10 bars and one gigapascal σ1 -σ3. If differential stress exceeds the strength of the rock, the (GPa or 109 Pa) equals 10 kilobars. One bar is 14.503 pounds rock deforms (and eventually ruptures). Differential stress may per square inch (psi) and one psi is 6895 Pa. be compressional, tensional, or shear, which also determines Stress differs from pressure in that it also includes a sense how the rock deforms in response to the stress. of directionality (vertical or horizontal); in other words, Compression is the stress that shortens (squeezes) a rock stress is a vector quantity while pressure is a scalar quantity. body; tension elongates (stretches) the rock body in two Pressure (P) at a given depth is given ρgz where ρ is density of opposite directions. Normal stress (σn) acts perpendicular to the material (rock or fluid), g is gravitational acceleration (9.8 a rock surface; it may be compressional (positive) or tensile m/s2) and z is the target depth. (negative). Effective normal stress is normal stress minus pore In his 1942 book The Dynamics of Faulting and Dyke fluid pressure.Shear stress (σs or τ) acts parallel to the rock Formation with Application to Britain, the Scottish geologist surface and causes two rock units to slide over each other; in Ernest Masson Anderson (1877–1960) formulated the stress field other words, shear stress changes the angles in a rock body. of a three-dimensional rock body in terms of three principal Geologists also distinguish between paleostress (stress stress axes – maximum or greatest (σ1), intermediate (σ2), and that acted upon rocks in a given area in the geological past) minimum or least (σ3). All these stresses acting upon a rock and in-situ or contemporary stress, which can be inferred body are compressional but may have different magnitude and from plate motions, earthquakes or borehole data. direction. In normal faults, σ1 (rock overburden) is vertical and Horizontal extension takes place in the direction of σ3. In reverse (thrust) borehole stresses in faults σ1 is horizontal and σ3 is vertical, and thrust shortening maximum a borehole stress σ1 σ2 takes place in the direction of . In strike-slip faults, is vertical related to horizontal drilling-induced while both σ1 and σ3 are horizontal, and slip occurs at an angle of borehole Sorkhabi Rasoul breakout tensile fractures 45° or less to the orientation of σ1. Mean stress is the arithmetic and drilling- σ1 σ2 σ3 average of the three principal stresses ( + + divided by 3). induced minimum (For more information refer to ‘Know Your Faults, Parts I and II,’ tensile stress GEO ExPro, Vol. 9, Nos. 5 and 6.) fractures. borehole horizontal Isotropic (uniform) stress or confining pressure is a breakout situation in which a body is compressed by equal pressure in

GEOExPro September 2014 43 GEO Education

Mohr Envelope and Coulomb Failure τ or σs We are now in a better position to delve SHEAR TENSION more into geomechanics and study how (COMPRESSION) rocks fail and fracture under stress. We Sorkhabi Rasoul owe this analytical knowledge largely to a σ = [(σ + σ )/2] + [(σ - σ )/2] cos 2θ group of French physicists and scientists: n 1 3 1 3 Guillaume Amontons (1663–1705), τ = [(σ - σ )/2] sin 2θ Charles-Augustin de Coulomb (1736– . 1 3 (σ - σ )/2 1806), Claude-Louis Navier (1785–1836) 1 3 and L. Hartmann, as well as the German 2θ engineer Christian Otto Mohr (1835– − σn σ . σ σn 3 1 (σ + σ )/2 1918), European engineer Richard Edler 1 3 von Mises (1883–1953), English engineer Alan Arnold Griffith (1893–1963), and Austrian soil engineer Karl von Terzaghi (1883–1963). These scientists developed τ or σs : shear stress σ : normal stress powerful mathematical diagrams and n θ : angle between σ3 and the plane on equations that calculate and thus predict which the normal and shear stresses are determined the development of rock fractures in − τ relation to stresses applied to rocks. Graphical representation of rock Mohr circle and calculations of normal stress and shear stress on a plane failure or fracture, called Mohr diagram, includes the relationship between shear τ or σ stress (σs or τ) on the vertical axis and s normal stress (σn) on the horizontal axis TENSILE FAILURE SHEAR FAILURE of the diagram, and the distance of rock Sorkhabi Rasoul φ stress (represented by a circle) from a line τ = C + σn tanφ called the Mohr envelope of failure. e µ = tanφ velop e En Various scientists have attempted to ailur 2 2 STABLE FIELD quantify the criteria when the stressed σs + 4Tσn – 4T = 0 Coulomb F rock exceeds the failure envelope and thus Gri th –.C fractures either by tension or by shear.

In 1699, Guillaume Amontons 2T suggested that the shear force parallel − σn . σn to a rock surface necessary to initiate T σ3 σ2 σ1 slip in the rock is directly proportional to the normal force acting upon the surface. The proportionality constant σ1 μ is called the coefficient of internal friction (a term introduced by Navier in σ2 1833). Therefore, we can write: σ τ = μ σn 3 τ or σs : shear stress For solid rocks, the value of μ ranges σ >σ >σ σn : normal stress 1 2 3 C: cohesive shear strength from 0.47 to 0.7; for general calculations Principal stress axes: T: critical tensile strength Maximum (σ1) − τ it is assumed to be 0.6. Intermediate (σ2) φ : angle of internal friction (~30°) Minimum (σ3) In 1773, Charles Coulomb verified µ : coefficient of internal friction (~0.6) and refined Amontons’ equation. He recognized that a rock fractures only if Mohr envelop of failure using Griffith-Coulomb criteria. Depending on the position of the Mohr’s C circle of stresses, there are three fields: Stable (below the failure envelope), critically-stressed the cohesive strength ( ) of the rock is (touching the failure envelope), and unstable (beyond the failure envelope in which the rock may exceeded. In other words: fracture by tension or by shear). Three principal stress axes are also depicted. τ = C + μ σn The constantC represents the critical Further work by Navier and Mohr τ = C + σn tanφ shear strength of the rock (or resistance in the 19th century advanced our where φ is the angle of internal friction of the rock to shear stress) when normal understanding of rock failure. The (about 30° for sand grains). stress is zero. Rocks also have a critical following equation quantifies the line The Mohr diagram indicates that as the tensile strength, plotted as the point T, on of shear failure on Mohr diagram and is normal stress increases we also need more the Mohr diagram. Cohesive strength of a called Coulomb-Navier, Coulomb-Mohr shear stress to fracture the rock. rock is twice its tensile strength (C = 2T). or simply Coulomb criterion of failure: The Coulomb criterion describes the

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GEOExPro September 2014 45 GEO Education

PRESSURE

Lithostatic pressure gradient Marli Miller 2.31 g/cm3 22.6 MPa/km 1.0 psi/ft Fracture pressure gradient

Hydrostatic pressure gradient 1 g/cm3 Underpr 9.8 MPa/km O v 0.433 psi/ft

DEPTH (Z) DEPTH erpr

essur essur ρ: density g: gravitational acceleration e e z: depth ρ sediment

fluid

g z g z

Rasoul Sorkhabi Rasoul Plumose fracture in argillite, Proterozoic Appekkuny Formation, Montana. Fracture surfaces often display plume-like features; the axis of the plume Calculations of subsurface pressures for fluid (water) and sedimentary indicates the direction of fracture propagation (parallel to σ1). The fracture rocks based on their pressure gradients. Fracture pressure is the stress probably originates from a heterogeneity in the rock (such as inclusions sufficient to fracture a rock. It is related to pore fluid overpressure. and sedimentary structures). The average velocity of fracture propagation Fracture pressure gradient is usually 18-20 MPa/km. Fracture pressure can has been measured to be half the speed of sound waves. The presence of be determined from leak-off tests. plumose features suggest that the fracture is still in open (tensile) mode. failure of rocks by shear (the right side of Mohr diagram), but axis. When the crack is oriented perpendicular to a compressive is not applicable to tensile fracturing (left side of the diagram). stress, it tends to remain closed. Griffith criterion for tensile Experimental work has shown that the Mohr envelope for tensile failure on the Mohr envelope is: 2 2 failure is shaped like a parabola, and the point T (critical tensile σs + 4Tσn – 4T = 0 strength of a rock) represents the intersection of Mohr envelope In summary, a combined Griffith-Coulomb criterion is the and the horizontal axis (normal stress). The value ofT varies for best available model for quantifying the fracturing of rocks by rocks. In 1920, Alan Griffith noted that this variation is due to tension or shear. In ductile regimes, where the Mohr envelope the existence of microscopic cracks, flaws, grain boundaries and is expected to flatten and a maximum shear stress is reached, pore spaces in rocks; these random, pre-existing features, from other formulations such as Von Mises criterion should be which tensile fractures originate, are collectively called Griffith used to describe rock deformation. cracks. When a Griffith crack is oriented perpendicular to References and Further Reading: tensile stress, the crack easily propagates at its ends in a direction Fundamentals of Rock Mechanics, John Jaeger, N.G. Cook and Robert σ perpendicular to 3, Zimmerman (Wiley-Blackwell, 2007, 4th ed.) the minimum Petroleum Related Rock Mechanics, by Erling Fajr, R.M. Holt, principal A.M. Raaen and R. Risnes (Elsevier, 2008, 2nd ed.) Reservoir Geomechanics, Mark Zoback (Cambridge University Press, 2010) Rock Joints: The Mechanical Genesis, Georg Mandl (Springer, 2005, 2010)

Vertical fractures and crossbeds in the Jurassic-age Navajo Sandstone, Checkerboard Mesa, Zion National Park, Utah. Rasoul Sorkhabi Rasoul

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Mongolia’s oil and gas E&P sector has been characterized by, well, Mongolia not very much – up until now. Potential in an Emerging Economy JUSTIN TULLY, Petro Matad; ANDREW BARNWELL, Barnwell Parker Geoscience

Mongolia emerged as an independent Mongolia has been producing oil be very large; at present over 290,000 and fledgling democracy following the for many decades, but so far only on km2 are under license, which is more collapse of the Soviet Union in 1991. In a small scale. The Tsagaan Els and than the land area of the UK! There are the intervening two decades the country Zunbayaan fields in the East Gobi were a further 240,000 km2 that are pending has made massive progress, with a fast drilled on seeps as long ago as 1941, or study licenses. Currently 14 oil growing economy and a stable political but have only produced combined companies have interests in Mongolia system. Growth is now in double digits, volumes of around 10 MMbo, although but they are all small and most are largely due to a rapidly increasing they are still producing about 1,000 inactive, holding large positions on a mining sector. The Oyu Tolgoi gold bopd. More recently, China’s Petro- speculative or study basis. Only Petro- and copper mine, in the South Gobi China subsidiary, Daqing Oil, has China is actively drilling and producing, desert, for example, went on stream last been producing from the Toson Uul with Petro Matad as the most active year and will contribute up to 30% of field complex in Blocks XIX and XXI, explorer in the frontier areas. Mongolia’s GDP at its peak. If progress near Mongolia’s eastern boundary, in Petro Matad has recently completed goes to plan, then this mine will be one the Tamtsag Basin. This is a southerly extensive regional evaluations, focused on of the largest copper mines in the world continuation of China’s producing the central Block IV and V areas, as well by the end of the decade. Mongolia is Hailar Basin trend. The Tamtsag Basin as Block XX. The company has integrated also a large producer of coal, supplying has so far produced about 15 MMbo four seasons of field work with modern the domestic energy market, with the since it came on stream in the late 2D seismic and four stratigraphic core surplus exported to China. 1990s. The basin is currently producing holes, and has highlighted a number of Despite this growth, however, and about 17,000 bopd from several small highly prospective areas which are worthy with an emergent middle class requiring fields, with the crude exported south to of further exploration. Total basin fill of ever more energy, Mongolia still imports China’s Hohhot refinery. 3,000–5,000m is common, despite large 100% of its refined products, mostly So what is the potential for further scale inversion since the Mesozoic and from Russia to the north. The domestic development of this fledgling industry? Tertiary. market currently requires around 25,000 The oldest megasequence is a Permo- bopd, with over 50% being utilized by Megasequences and Analogous Basins Carboniferous to Jurassic pre-rift section, the mining industry. This is a supply Mongolia has a number of sedimentary which marked the transition from problem that will only get worse, so now basins, most of which are either marine passive margin stratigraphy of the time is right for explorers to move in undrilled or have been only sparsely the Paleo-Tethys Ocean to non-marine and address the issue. explored. These basins, however, can succession following northward drift of Petro Matad Petro

48 GEOExPro September 2014 80°0'0" E 90°0'0" E 100°0'0" E 110°0'0" E 120°0'0" E 130°0'0" E

Tamtsag Basin B B’ NW Mogoit Subbasin Khangain Nuur Subbasin Uvur Khundii Subbasin Navtgar Subbasin SE 1,000 – Basalt ow (βN2) Tertiary (N-f) Quaternary (Q)

500 – N

Sea Level – " -500 –

-1,000 – 0 -1,500 – ' -2,000 – Elevation (m) Elevation RUSSIA -2,500 – 0 -3,000 – ° -3,500 – Seismic Line 11–20–18

10 km 0 Legend Petro Matad Petro

Base Tertiary Unconformity Kdz Upper Zuunbayan Formation Kcc Upper Tsagaantsav Formation Base Tsagaantsav Unconformity Carboniferous Intrusive Rock 5 K ss Sainshand Formation K dz Lower Zuunbayan Formation K dz Delta, alluvial fan, uvial sandstone Pre Rift 1 Basement Base Sainshand Unconformity Basal Zuunbayan Unconformity Kcc Lower Tsagaantsav Formation Pre Rift 2 Fault

HAILAR BASIN KAZAKHSTAN N SA AL IB N O SI A CHXVAIII L B SONGLIAO B T A A XVII TAMTSAG S I ULAANBAATAR BASIN IN C.MONGOLIAN PLATE BASIN

NYALGA N

JUNGGAR XXI " ( ( XIX MONGO• IA BASIN 0 BASIN ' C Z 0 AL XXVI . ° E .F A D B XX 5 O XVI G L N 4 T IA B’ A N E. I M M.O.S N T S G IV XXIV O B XV I B I CENTRAL GOBI OB A -A V X(N) G S L BASIN T N IN T S XIVI TIEN SHAN MNTS A EA AS I 97 B ERLIAN

XIII BASIN PERMIAN TURPAN . SOUTH GOBI .F XXIII BA SIN Z BASIN XI H E

R N C VII Y " N IA 0 N ' 0 ° 0 4 TARIM CHINA BASIN ORDOS Petroleum Basins QILAN SHAN MNTS BASIN Oil Fields QAIDAM BASIN Paleozoic Sutures N

.F Mesozoic and Tertiay Faults "

.T 0 A ' 0 °

Z.F Zuunbayan Fault 5 3

TIBETAN PLATEAU A.T.F Altyn Tag Fault Q.F.Z Q.F.Z Qilan Fault Zone

0 160 320 640 960 1,280 M.O.S Mongol-Okhotsk Suture Kilometers E.G.F.Z East Gobi Fault Zone

Map showing the main basins of Mongolia and analogue basins in China, together with active PSCs only, and the producing oilfields of Mongolia. Cross-section B-B’ shown on page 52. a number of micro-continents, with the oil and gas in producing analog basins for all of Mongolia’s currently proven closure of Paleo-Tethys and the formation such as the Junggar and Turpan Basins in hydrocarbons. This play is also dominant of the Mongolian/Chinese lithosphere. China. in several other Chinese basins, especially Limestones overlain by fluvio-lacustrine A large heat pulse then resulted in a the Songliao and Erlian Basins to the east. coals and clastics are the dominant major extensional phase, with a strike- Extensional tectonics subsided by lithologies. This continent-continent slip component, continental collapse the mid-late Cretaceous, resulting in the collisional event resulted in regional and development of a latest Jurassic- development of a predominantly coarse uplift, and the development of a regional Cretaceous syn-rift megasequence. clastic continental post-rift megasequence angular unconformity at the end of the This sequence comprises interbedded in all the topographic lows. Further Jurassic. The pre-rift section is a source fluvio-lacustrine shales and sandstones, inversion, however, was initiated in the of economic coals, as well as abundant which are both source and reservoir Tertiary as a result of the northward

GEOExPro September 2014 49 Exploration collision of India to the south, and the emplacement of the Himalayan orogen. This BIGER TUGRUG resulted in a second major unconformity of BSC-1 TAATSIN TSC-1 Tertiary age and dominant compressional strike-slip tectonics. Most basins now have a ModifiedFugro after clear strike-slip component with associated pull-aparts and compressional flower structures. Compression is still underway, with base level often >1000m above sea level. As already mentioned, these basins are extremely analogous to many producing basins in China, with similar megasequences and lithology. The ingredients that result in multi-billion barrel reserves in China should therefore be present in the undrilled parts of Mongolia.

Potential for Large Discoveries Clear evidence of the potential for a working petroleum system gathered by geoscientists from Petro Matad has highlighted the opportunity for large discoveries. Across large areas of Block IV and V, fieldwork has proven the existence of syn-rift Upper Jurassic-Lower Cretaceous lacustrine organic-rich shales interbedded with sandstones in the Shine Khudag Formation. TOC of samples in the Khoid Ulaan Bulag oil shale, with a net shale thickness of 265m, can range from 1.7% to 27% type I-II kerogen, and has a maximum HI of 800. The thickness and quality can vary, so that at Tsagaan Suvarga the average TOC is 5.3% (1.7–10.6%), but net thickness is 900m and HI reaches 900. At almost every outcrop, many of which may have been deposited in a marginal lake setting, source rock quality is sufficient to result in significant generation if mature. Outcrop maturity averages around 0.6% VR, marginally mature for generation. Basin modeling, however, suggests that in much of the subsurface the source will be mature, with onset of generation in the early Cretaceous following syn-rift subsidence and burial. Potential reservoir rocks of the syn-rift megasequence are also extensive in outcrop. Clean fluvio-deltaic sandstones of the Tsagaantsav or Shine Khudag Formations, with original porosities ranging from 10-30%, are extensive. These are often similar in age to the shales, A carboniferous play may be present based and are sometimes even interbedded on analogy with the Junggar Basin with them. Evidence of secondary quartz overgrowth or clay mineralization is rare, and porosity is preserved, even at depth in Stratigraphy of central Mongolia (Blocks IV and V), with a tectonic evolution and petroleum the stratigraphic boreholes. system overview

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GEOExPro September 2014 51 Exploration

Surface hydrocarbon seepages have not been observed to date, but core from the deepest stratigraphic borehole, TSC-1 in Block V, which was the only test to reach the syn-rift section, Matad Petro contained oil staining. Fluid inclusion studies also revealed significant hydrocarbon inclusions from a range of core and outcrop samples. These observations, plus the positive analogs from China and the producing basins in Mongolia, all point to the very high probability of a working syn-rift petroleum system. The pre-rift is in a much less advanced stage of evaluation, and is currently unproven in Mongolia. In China, however, this megasequence is a major oil and gas producer in such basins as the Tarim, Junggar and Turpan. Coals from this megasequence are already mined within Mongolia so hopefully further work will realize the potential of this deeper megasequence too. Due to the complex history of extensional, compressional and strike slip tectonics, abundant trapping styles are identified on 2D seismic. These may consist of extensional features such Syn-rift lacustrine sandstones, Argalant. as rotated fault blocks; compressional features, including thrusted anticlines, sub thrust plays and sub-unconformity plays; stratigraphic plays like pinch-outs or basin floor fans; or a Petro Matad Petro combination of styles. This has resulted in the identification of abundant leads with multi-billion barrel resource potential.

The Time is Right Mongolia is a very large country with a huge resource base that is just beginning to be exploited. With the mining sector dominating the investment market and resultant growth anticipated to be between 12–15% in the coming years, there is a large and growing demand for energy. So far this has not been realized through domestic production, but the time is right. Plans are underway for the country’s first refinery, and supplying domestic oil to fill the capacity makes both strategic and economic sense. Mongolia is landlocked between Russia and China, which has created problems for foreign investors with concerns about delivery options in the past. But with the opening up of markets, especially in China, with oil already being exported there, these problems are disappearing. The country is becoming increasingly politically stable with a fast growing economy. New investment and petroleum laws have been recently implemented, and there are attractive fiscal terms, making economics robust. All this, plus very positive geological indicators, makes this frontier area one of the most attractive opportunities available for new investors in petroleum exploration. Syn-rift lacustrine oil shale/source rock, Khoid Ulaan Bulag locality.

West-east cross section through Block XX, north-east Mongolia, showing the variety of potential trapping styles. For location of section see map on page 49.

Tamtsag Basin B B’ NW Mogoit Subbasin Khangain Nuur Subbasin Uvur Khundii Subbasin Navtgar Subbasin SE 1,000 – Basalt ow (βN2) Tertiary (N-f) Quaternary (Q)

500 –

Sea Level –

-500 –

-1,000 –

-1,500 –

-2,000 –

Elevation (m) Elevation -2,500 –

-3,000 –

-3,500 – Seismic Line 11–20–18 10 km Legend Base Tertiary Unconformity Kdz Upper Zuunbayan Formation Kcc Upper Tsagaantsav Formation Base Tsagaantsav Unconformity Carboniferous Intrusive Rock K ss Sainshand Formation K dz Lower Zuunbayan Formation K dz Delta, alluvial fan, uvial sandstone Pre Rift 1 Basement Base Sainshand Unconformity Basal Zuunbayan Unconformity Kcc Lower Tsagaantsav Formation Pre Rift 2 Fault

52 GEOExPro September 2014

Technology and Geohazard Analysis ERIC BOUANGA, dGB Earth Sciences and JAMES SELVAGE, BG Group

The last few years have seen a growing focus on shallow hazard analysis and, in particular, the structural and stratigraphic interpretation of 3D seismic data to identify and delineate such geohazards

Typical geohazards which need to be identified pre-drilling Examples of such global interpretation include the ‘Age include shallow gas, abnormal pressure zones and gas hydrates Volume’ technique that assigns a value representing relative – all of which can have a crucial impact on future production geologic time to each seismic sample position (Stark, 2003); operations and drilling decisions. PaleoScan software from French startup company Eliis (Pauget The benefits of conducting shallow hazard analysis in et al., 2009) that builds a geologic model by connecting each 3D seismic data as opposed to 2D include increased spatial seismic event to the most probable neighboring events; and accuracy and the improved reliability of post- and pre-stack dGB’s own HorizonCube (de Groot et al., 2010). amplitudes. This enables volume-based and amplitude-versus- This article will provide an overview of the HorizonCube angle (AVA) based attributes to be interpreted. and how it can be applied in shallow geohazard interpretation. 3D seismic data also allows global interpretation methods to be applied in shallow hazard interpretation workflows. The HorizonCube for Geohazard Analysis Such global interpretation methods can be characterized The HorizonCube is an emerging global interpretation as methods that generate fully interpreted volumes – often technique that provides fully interpreted seismic volumes. through the concept of geologic age. Global interpretation Horizons are automatically tracked mainly using the seismic methods provide interpreters with the tools to slice through dip volume, but in a very complex geological setting a model- volumes of seismic amplitudes and derived attributes along driven approach (i.e. a geologic time lines, helping to recognize depositional features proportional interpolation and potential shallow hazards. method between dGB

Figure 1: The HorizonCube is a 3D (or 2D) stack of horizons. The HorizonCube in this display is a ‘truncated’ one, meaning horizons stop when they get too close together. One of the horizons is displayed in its entirety. Only the intersection of the other horizons with the seismic line is shown. The inset shows prograding clinoforms, typical structures best captured through data-driven tracking.

54 GEOExPro September 2014 framework horizons) is preferred. Compared to conventional dGB amplitude tracking, the HorizonCube algorithm is more robust in areas with low signal to noise, where diachronous events can be tracked as well as events that are phase inconsistent. As these horizons are also guided by a continuous dip-field, they may converge and diverge according to the dip of a seismic reflector. In this Figure 2: Tracking continuous horizons way, the key geologic features such as unconformities, pinch-outs and condensed sections can Applying the Wheeler Domain be highlighted. A key advantage of this technique in geohazard analysis is While the HorizonCube and its fully interpreted seismic via the Wheeler Transformation (Wheeler, 1958) where, once volumes and high resolution seismic has significant a satisfactory HorizonCube is constructed, any attribute of implications for sequence stratigraphy, geological model interest can be stratigraphically flattened. building, well correlation, inversion and geosteering, this The Wheeler transformation warps the z-axis (time or depth) article will look at the method’s applicability in shallow of Cartesian space such that every horizon in the HorizonCube hazard analysis. is flat and their spacing regular. Within this flattened space, the To generate a data-driven HorizonCube for geohazard seismic data and selected attributes can be easily and efficiently analysis, a (dip-) SteeringCube is generated which calculates sliced in a pseudo-stratigraphically consistent manner. local dip and azimuth values of the seismic reflectors and The interpretation of anomalies in the Wheeler domain generates a dense set of horizons throughout the 3D seismic increases the interpreter’s understanding of the spatial volume. The dip/azimuth field is then smoothed, reducing distribution and the timing of sediment deposition. Attributes the impact of random noise and allowing the user to control can be flattened to assess shallow hazards, such as gas-filled the detail that needs to be captured by the horizon tracker. shallow channels, fluid and lithology variation relating to Horizons can be tracked in two different modes: firstly, seismic amplitude, pockmarks, bottom simulating reflectors, as truncated horizons (see Figure 1) that stop when they and faulting or truncations based on similarities. get too close together (when two events are getting close, In addition, Wheeler-transformed attribute volumes create only one stops). This helps to identify stratigraphic lapouts less interpretation ambiguity compared to time or depth slices, such as onlaps, downlaps and top laps. The second mode or parallel to seabed slices. This is because the HorizonCube is where the horizons are tracked as continuous, staying follows gross dip in a truly 3D sense, as can be seen in Figure 3. together when they converge and never crossing each The net result is that through use of the Wheeler domain it other. Figure 2 illustrates this, where all horizons exist becomes possible to see stratigraphic details that help increase the at every X, Y position. Horizons start from a single seed interpreter’s understanding of the depositional environment and position separated in time by one sample position (one enable them to better analyze shallow hazards. sample is the closest one but it can be a multiple of one Figure 3: The HorizonCube follows the seismic dip in 3D, with amplitude sample, i.e. 1,2,3 etc…) and help identify unconformities extractions having and condensed sections. less ambiguity when compared to time slice and seabed Implications for Shallow Hazard Analysis flattened ones. The The HorizonCube has key applications for shallow hazard seismic section (top) is analysis prior to the drilling of new wells. In a typical a random line shown

in red (bottom) from dGB application, for example, a HorizonCube is created over the 3D seismic volume. the upper part of a conventional 3D seismic data set in a The yellow line shows small area (typically 60–150 km2) centered on the intended a parallel to seabed drilling site. The focus is on the shallow section up to horizon and the blue line shows the horizon 2,000m below the water bottom. A dense set of horizons extracted from the is mapped through a data and model-driven approach by HorizonCube, which tracking dip and azimuth information. honors the gross dip In some cases, however, the quality of the seismic in 3D. Windowed Root Mean Square (RMS) prevents the data-driven approach. In such situations, amplitude extractions a model-driven approach is more appropriate where can also be used to relationships to bounding horizons, including take account of any ‘proportional’, ‘parallel- to-upper’, and ‘parallel-to-lower’, imperfections in the HorizonCube. are identified.

GEOExPro September 2014 55 Technology

Deepwater Applications Figure 4. One of a sequence of pseudo- stratigraphic amplitude slices shown from To date, 12 exploration well site locations an 8 x 12 km volume for one of the drill site dGB have been assessed for shallow hazards locations. The slices are extracted from the by BG Group (Selvage et al., 2012) using continuous HorizonCube on a step of every 20. An orange circle marks the proposed the HorizonCube methodology, with exploration well location. A starting point the main goal being to accurately map for shallow hazard identification is to the complex shallow section around the pan through every pseudo-stratigraphic proposed well locations. In the example slice. This preliminary reconnaissance identified a meandering channel system shown in Figures 4, 5 and 6 the present that warrants further investigation with seabed is characterized by active canyons different flattened seismic attributes. and the depositional environment is reflected in the cross-cutting channelized Figure 5: An RMS amplitude extraction and turbiditic deposits evident in the from a pseudo-stratigraphic slice, clipped shallow seismic. to show the brightest amplitudes in The interpretation of the appropriate red. These features may be associated hazard level associated with high with shallow gas. Comparing the RMS amplitudes extracted with TWT amplitude features within the shallow extraction onto the pseudo-stratigraphic section is significantly enhanced by the slice shows that features trend ability to slice through volumes along perpendicular to TWT contours. The TWT horizon slices. Potential connection times can be used to search for whether the bright amplitudes are structurally between sand-prone channels and deep- conformable, which may increase the seated faults that could provide a gas likelihood that they are associated with migration pathway can also be studied. shallow gas. If structural conformance These can be further risked based on were observed, a Vp/Vs ratio attribute may help risk such features further. potential pinch-out, isolation of sand bodies within encasing shales and/or dGB conformance of sand bodies to structure. In this deepwater area, the seabed and Figure 6. An anomalously high amplitude immediately sub-seabed sediments were feature is observed in a synclinal feature expected to be very soft with occasional on the pseudo-stratigraphic slice sands. These intervals are often extracted from the HorizonCube (top). channelized and contain sandy intervals The TWT values are extracted onto the slice with bright amplitudes rendered in dGB with higher porosity. Such intervals can orange (bottom). The bright linear feature have a chaotic amplitude character with is interpreted as a shallow channel. The bright amplitudes, associated with fluid color bar on the TWT has been squeezed to fill or lithology (Figures 5 and 6). evaluate whether any bright amplitudes coincide with closure against the Through this methodology, suites of shallow fault observed on the pseudo- pseudo-stratigraphic slices are generated stratigraphic slice. over a large area when compared to typical shallow hazard studies. The result is a HorizonCube created over an 11 by 14 km area designed to cover one planned exploration well and two likely appraisal well locations, should With special thanks to BG Group the exploration well be successful. One for supplying the data shown in of the appraisal wells was subsequently this article. drilled in a different location, demonstrating the flexibility that the HorizonCube brings and tool brings significant benefits, enabling any attribute of its ability to detect geohazards. interest to be flattened in order to perform a more complete analysis of shallow hazards. This not only leads to a more A Greater Understanding holistic understanding of such hazards, but also provides Today, the HorizonCube stands alongside other dGB greater flexibility in the choice of well locations. interpretation tools such as ‘Chimney Cubes’ in their ability Furthermore, additional developments are expected over the to detect geohazards. In the case of ‘Chimney Cubes’, for next few months to achieve greater automation and robustness example, vertical anomalies on the seismic data associated with in results, so interpreters can focus their efforts on assessing gas clouds and gas chimneys can be highlighted and drilling identified geohazards rather than manually searching for hazards, such as shallow gas pockets, identified. them. This will lead to improved drilling, well and reservoir It is clear that the HorizonCube as a global interpretation management strategies and a considerable reduction in risk.

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www.NeuraLaserColor.com The Caspian Sea has been a major focus for hydrocarbon exploration for many years, with CGG’s study area covers the offshore Middle Caspian Basin within Russia and Kazakhstan. particular attention on the Precaspian and South Caspian Basins. However, hydrocarbon A regional 2D seismic grid has been used to assess the area’s exploration in the Central Caspian Sea has been sparse, with drilling activity largely petroleum geology. focused near shore and little to no activity within the central part of the basin. This CGG multi-client dataset Caspian Sea: consists of 81 long-offset 2D Primary hydrocarbon discoveries have been made in the seismic lines extending over 10,000 line kilometers across the deeper Triassic to Cretaceous strata, with potential still Middle Caspian Basin. Frontier Exploration Just over 5,000 km were acquired remaining in the shallower Tertiary sequences. in the Russian sector in 1995 and subsequently reprocessed by CGG in 2009, while another 5,000 km The illustrated seismic section is an arbitrary line oriented south-east, north-west to west across Kazakhstan and Russia within of modern seismic were acquired in the Middle the Central Caspian Sea. A number of key markers have been interpreted throughout the section to highlight the different and processed in 2010 in the sequences from rift to drift stages. Primary source rocks are situated within the deeper Triassic rift section with reservoirs Kazakh sector. within the Jurassic through to Cretaceous. Potential secondary source rocks and reservoirs can be found in Tertiary sequences Caspian Basin within large-scale clinoform systems, in particular within the Maykop Series. Terek-Sulak Foredeep North Apsheron Depression South Mangyshlak Sub-basin 0.000 — W NW Extremely shallow SE 0.200 — water depths 0.400 — Large-scale 0.600 — clinoforms

0.800 —

1.000 —

1.200 — Deep canyons

1.400 —

1.600 —

1.800 — Volcanics 2.000 —

2.200 —

2.400 —

2.600 —

2.800 — Thick Tertiary 3.000 — sequence 3.200 —

3.400 — Truncation of 3.600 — rift structures Base Jurassic Unconformity 3.800 — Upper Jurassic Unconformity Intra-Cretaceous 4.000 — Upper Cretaceous Deep Triassic 4.200 — Lower Tertiary Sequence Boundary graben fill 4.400 — Upper Tertiary Sequence Boundary

4.600 —

4.800 —

58 GEOExPro September 2014 GEOExPro September 2014 60 Potential in the Middle JASWINDER MANN and Caspian Basin GREGOR DUVAL, CGG CGG multi-client 2D seismic data across the Central Caspian Sea helps provide understanding of current and new petroleum systems in a frontier area.

The Middle Caspian Basin extends onshore into parts Middle Miocene sandstones from the Russian sector in of Russia and Azerbaijan, with the offshore section in 1893. Notable onshore discoveries in Kazakhstan began Russia and Kazakhstan. In terms of structural geology, in the 1950-60s, comprising Tenge (119 MMbo and 810 the basin is bounded by the Great Caucasus fold belt on Bcf), Uzen (1.5 Bbo) and Dunga (408 MMbo). Most of the the west and south-west, and the Karabogaz regional Middle Caspian Basin’s discoveries trend along the South basement high on the east and south-east. The northern Mangyshlak Sub-basin in a south-easterly direction. boundary of the basin extends along the Karpinsky ridge A small number of wells were tested in the offshore and the Mangyshlak fold belt. The west area of the basin region of Kazakhstan but no discoveries were made. is a typical foreland basin whereas the eastern area is The first offshore oil and gas field was encountered in situated on a shallow crustal block between two areas of 1974 near shore in Russia. Other onshore and offshore uplift (Figure 1). Rifting of Hercynian basement occurred discoveries in Russia include Khvalynskoye (127 bcm and during the Late Permian to Triassic and led to the infill of 9.6 million tonnes of gas condensate), Yuri Korchagin (570 basinal lows with thick clastics and carbonates. Volcanism MMboe) and Tsentralnoye (98 MMboe), which is a shared followed in the Late Triassic, with a period of compression discovery between Russia and Kazakhstan. resulting in uplift and erosion of rifted blocks. The basin in the east underwent strong deformation during Seismic Stratigraphy that period, with thrusting and folding forming the Seismic data clearly illustrates that sediment thickness Mangyshlak fold belt. From Jurassic to Eocene the varies considerably from west to east, due to basin western area of the basin became a passive margin, with architecture and heterogeneities. In the deeper section continental and marine environments making up the from basement to base Jurassic, clear rift features Cretaceous and Tertiary section (Ulmishek, 2001). can be seen; faulted basement blocks are present with deep graben infill of Triassic sediments. Evidence of Exploration History compression and volcanism can be seen in this section Approximately 14 Bboe have been discovered in the Middle through deep folds and strong amplitude seismic Caspian Basin, with primary reservoirs consisting of reflections within the South Mangyshlak Sub-basin. Jurassic and Cretaceous rocks, while secondary reservoirs Seismic data offshore Kazakhstan shows Jurassic strata are found within the Tertiary. The first discovery in the directly overlying basement blocks, indicating areas Middle Caspian Basin encountered shallow oil within the where the Triassic is absent.

Figure 1: The Middle Caspian Basin is bounded by the Great Caucasus fold belt, the Karabogaz regional basement high, the Karpinsky ridge and the Mangyshlak fold belt.

GEOExPro September 2014 61 The base Jurassic is marked by an angular unconformity, which is a prominent basin-wide marker indicating the interface between the top of the rift sequence and the base of the post-rift section (Figure 2). It is a significant event representing the transition from continental to marine environment and a period of basinal subsidence and quiescence which dominated from the Jurassic period. The Jurassic section thins and becomes shallower to the east with the top of the sequence marked by another Figure 2: Petroleum potential of undrilled structures within the Triassic and Jurassic. unconformity. The Cretaceous section is a thin, uniform and fairly undeformed section only dependent on fracturing. This has been observed in Cretaceous partially affected by faulting. The Lower Cretaceous is thought carbonates of the South Mangyshlak Sub-basin and fractured to be siliciclastic-rich, especially within the Aptian and Lower Maykop Series shales in the Prikum Arch. Albian, and the Late Cretaceous is dominated by a carbonate The faults present within the post-rift can be related sequence. The Late Cretaceous has been significantly eroded, to significant gas escape features throughout this section. as deep incised canyons (up to 300m) are observed as a result These gas chimneys are located directly above steeply of large-scale erosion during the Tertiary. dipping extensional faults at depth and clearly show that a The Maykop Series marks the base of the Tertiary sequence. working petroleum system is in place, especially in the less Large-scale clinoforms are evident with chaotic reflectivity at explored central part of the basin. the base, indicative of debris flows and slump deposits such There are a number of structural and stratigraphic traps as olistostromes, suggesting the possibility of later uplift in visible in the underexplored central area of the Caspian Sea. the Caucasus region (Figure 3). The Maykop Series is thick Compressional anticlinal folds in the deeper sections within in the west (~1,200m) and thins eastwards to about 600m the Triassic and Jurassic can be considered as major targets where it downlaps the underlying Cretaceous section. The top with both sequences acting as reservoirs (Figure 2). Potential of this sequence is marked by an angular and highly erosive can also be found within the Tertiary clinoforms, with unconformity. A number of sequence boundaries can be reservoir porosity and permeability likely to be preserved interpreted within the shallower Tertiary section, with multiple due to their shallow burial. The presence of a regional seal in series of clinoforms prograding mainly towards the south-east this case may be an issue, forcing exploration to be reliant on (Figure 3). This major series of clinoforms is possibly indicative more localized seals (Figure 3). of a large sediment supply coming from the Great Caucasus Fold References: belt with the influence of high-magnitude sea level variations. Dyman, T.S., Litinsky, V. A. and Ulmishek, G. F. (2001). Geology and Natural Gas Potential of Deep Sedimentary Basins in the Areas of Potential and Undrilled Structures Former Soviet Union. Chapter 3, U. S. Geological Survey Digital Exploration so far has focused onshore and near shore in the Data Series 67. basin, with little information known about the offshore area. Ulmishek, G. F. (2001). Petroleum Geology and Resources of the One can assume there are analogies to be made between the Middle Caspian Basin, Former Soviet Union. USGS Bulletin 2201-A. two parts of the basin when looking Figure 3: Petroleum potential in large-scale Tertiary clinoform complexes, where there are possibilities of at the geology and hydrocarbon multiple stacked reservoirs. potential. Discoveries located in the Great Caucasus Fold Belt consist of structural traps within long and narrow faulted anticlines trending north-west south-east. In Stavropol Arch and Prikum Arch (see map), hydrocarbon accumulations are found in isometric low relief anticlines located over deeper Triassic reef structures or basement highs (Dyman et al., 2001). The permeability and connectivity of many hydrocarbon reservoirs found in that region is thought to be highly

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SEG,Booth Denver Three Brazil: Sergipe Alagoas Booth #1020 #554 Disappointments New 2D Multi-Client Seismic Data Available HALFDAN CARSTENS in the Barents Sea None of Statoil’s three wells in the Barents Sea this summer is associated with EM anomalies of any significance. It is therefore not surprising that not one of them proved commercial quantities of hydrocarbons.

The drilling campaign in the Hoop in the area is related to Wisting, which a disappointment. For although small area last summer has only given very is believed to have discovered 132 amounts of gas were found in the two meager results. Statoil made two tiny MMboe. The second largest anomaly in wells (Atlantis and Mercury), it was in gas discoveries (Atlantis, 7325/1-1 and the area is associated with the Hanssen far from commercial quantities. They Mercury, 7324/9-1), and one dry well discovery where between 18 and 56 can at best be described as technical (Apollo, 7324/2-1). This stands in sharp MMboe was detected. This anomaly is discoveries. contrast to the two oil discoveries OMV approximately a quarter of the size of As Hesthammer explains: “Although previously made on Wisting (2013) and Wisting, which fits well with proved there is an apparent anomaly associated Hanssen (2014). reserves. And we must not forget with Mercury, the size is small, only How was it possible to miss so Wisting Alternative, which was drilled about a third of that observed for fundamentally? outside the EM anomaly associated Hanssen. Again it fits very well with with the Hanssen discovery. The well the small gas volumes found [6–12 Fabulously Good Correlation targeted hydrocarbons in the Kobbe MMboe]. It has long been known that there is a Formation. It was, however, dry – again “There is simply a fabulously good clear correlation between the response in good agreement with the EM data correlation between an observed of electromagnetic measurements and shows.” anomaly and the discovered amounts of Legend Sergipe Discovery Wells the fluid content of a reservoir. Nowhere Because of the Wisting and hydrocarbons in this area.” Sergipe 2014 Phase 1 (New Acquistion) - 16,000 km Sergipe 2013 Reprocessing - 8,130 km is this better demonstrated than in Hanssen discoveries, the three holes What about Apollo and Atlantis License/Lease the Barents Sea. Jonny Hesthammer, drilled by Statoil in the Barents Sea further north? These wells were drilled Managing Director of Atlantic last summer were followed with in an area with significantly higher Petroleum Norway and professor at the extraordinary interest. All three were background resistivity than that University of Bergen, has shown that Spectrum Multi-Client seismic coverage in the Sergipe-Alagoas Basins there is a clear correlation between Jonny Hesthammer has extensive experience in the use of EM data in exploration for oil and gas. the size of the EM anomalies (NAR Based on the latest wells in the Barents Sea – including several disappointments – he claims that there is evidence of a clear correlation between the size of EM anomalies and the size of hydrocarbon Spectrum has commenced a 16,000 km Multi-Client 2D = Normalized Amplitude Response) discoveries in this geological province. Spectrum Multi-Client 2D PSDM and the volume of hydrocarbons in the seismic from Sergipe Alagoas 2014 seismic survey offshore Brazil in the Sergipe and Alagoas Reprocessing near Barra well Basins along the Eastern Margin of Brazil. The new reservoir. acquisition program will tie key wells in the Basins, including The drilling of Byrkje (7218/8- the recent Barra, Muriu, and Farfan discoveries. PreSTM 1) earlier this year was a further and PreSDM data will be available in Q4 2014. confirmation that the lack of an Carstens Halfdan anomaly results in a dry well. The To supplement the new acquisition in this active exploration area, Spectrum has completed the reprocessing of 8,130 Hanssen well (7324/7-2), however, km of data through both PreSTM and PreSDM and is which OMV drilled in early summer offering this data to industry in order to get a head start on 2014, showed that a CSEM anomaly the expected upcoming round in 2015. was associated with a small addition to the main findings obtained from the Wisting well. “The results are startling,” says Hesthammer. “I have looked at EMGS’s +1 281 647 0602 inverted multi-client EM data from [email protected] the Hoop area, and it simply shows www.spectrumasa.com an exceptionally good correlation between the strength and extent of observed EM anomalies and volumes of hydrocarbons. The largest EM anomaly

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To supplement the new acquisition in this active exploration area, Spectrum has completed the reprocessing of 8,130 km of data through both PreSTM and PreSDM and is offering this data to industry in order to get a head start on the expected upcoming round in 2015.

+1 281 647 0602 [email protected] www.spectrumasa.com Technology observed for wells further south. But the EM data is nonetheless compelling, according to Hesthammer. Atlantis – Minor gas discovery “Apollo was drilled just outside a distinct resistive lineament, and it is not © Atlantic Petroleum Apollo – Dry linked to any clear EM anomaly. There should therefore be no surprise that this well was dry,” he says. “For the Atlantis well the picture is more nuanced. There is no obvious anomaly associated with this prospect either, but EM data Green background color revealed slightly elevated resistivity, and indicates higher background it hangs nicely with the observation of resistivity to the north small amounts of gas in the well.”

Can We Neglect Data? The picture is now complete. For while the three discovery wells to the south Hanssen – Oil: 18-56 MMboe Wisting Alternative - Dry are all associated with EM anomalies Wisting Central – Oil: 132 MMboe which fit with the hydrocarbon volumes that have been detected, the disappointing results from Apollo and Atlantis are also nicely explained, since Mercury – Gas: 6-12 MMboe the EM data does not show any apparent associated anomaly. “Additionally, the results of Atlantis and Mercury show that EM has the sensitivity to fault blocks down to 1x1 The EM anomalies in the Hoop area as mapped by EMGS. The two strongest anomalies are clearly km and hydrocarbon columns that are associated with the two discoveries of oil on Wisting and Hanssen, while Statoil’s three wells have either a slight anomaly or are missing an anomaly. less than ten meters,” says the geologist with broad geophysical knowledge. technology works,” concludes Jonny between EM and hydrocarbons? How As many would argue, that means Hesthammer. many dry wells will the Norwegian that it is very risky to explore in this We, who sit on the sidelines, are left government subsidize for the part of the world without using EM asking whether these results will be used conservative oil industry before realizing data. “The data from the Hoop area in future drilling decisions. How many what new technology can contribute? is some of the most persuasive I have good correlations must there be before See foldout article, page 36, for further seen in terms of evidence that EM explorationists believe in a correlation discussion on this topic.

The relationship Link between strength of EM anomaly and HC – Barents Sea between the strength of the 350% EM anomaly Strong EM response (NAR>15%) Weak EM response (NAR<15%) and recently 300% completed wells

Discovery – Exploration © Atlantic Petroleum Goliat – 238 MMboe Discovery – Calibration on the Norwegian 250% Havis – 250 MMboe Discovery – Unknown commercially continental shelf. It appears Wisting – 132 MMboe Discovery – Non-commercial Dry well – Exploration that commercial 200% Skrugard – 286 MMboe Dry well – Calibration discovery is Norvarg – 189 MMboe Recent CSEM wells associated with the 150% Skavl – 35 MMboe NAR (normalized Salina – 38 MMboe Hanssen Wisting Alt. – Dry amplitude) > 15. Mercury – 6-12 MMboe 100% – 18-56 Darwin – Dry MMboe Atlantis – Minor gas Byrkje – Dry Apollo – Dry* Bønna – Dry 50% Heilo – Dry Eik – Dry

0 NAR=15% Normalized anomalous response (NAR)

-50%

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 Well # *=The well was drilled within the NAR-tail and outside of a resistive feature de ned as background Mostly discoveries (76%) Mostly dry wells (68%) (2.9% commercial discovery rate)

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GEOExPro September 2014 67 Recent Advances in Technology

LASSE AMUNDSEN, Statoil and Broadband Seismic MARTIN LANDRØ, NTNU Trondheim Technology and Beyond PART X: IsoMetrix – Isometric Sampling IsoMetrix is more than broadband seismic. It goes beyond, by reconstructing the deghosted wavefield in 3D, and performs fine spatial sampling in all directions. In this article we ask: how did the idea come about? What is the story behind a ten-year R&D project in Schlumberger – its largest single engineering investment ever? The result was a great innovation: IsoMetrix, a technology that can ‘read between the streamer lines’. The project not only delivered the new seismic acquisition technology, but also the algorithms and workflows needed to manage the unprecedented amount of data it produces. ‘An idea, like a ghost, must be spoken to a little before it will explain itself.’ – Charles Dickens

Dickens’ creative genius was praised by theoretical and experimental research, acoustic pressure P or particle velocity fellow writers, and this quote shows he with seismic as the common thread. The vector V as a function of position and was interested in the creative process. scientist is studying how hydrophone time. To arrive at the wave equation, You might have a great idea, but without and geophone measurements can be physicists make use of conservation ‘talking to’ or working with it, it will combined into deghosting, the basis for of mass and Newton’s law, which tells never be realized. An idea may come broadband seismic. He realizes that only us that the acceleration of particle out of nowhere but you have to do some the vertical component of the velocity motion (the rate of change of velocity, deep investigations before it can be measurement is used in the deghosting ∂V/∂t) is related to the gradient of the explained and utilized fully. In other process, and deghosting at the time is pressure wavefield ( P). For each of the words, you never know how it will turn only applied on a streamer by streamer components, it yields: out unless you work hard with it first. basis, in 2D. Is there any use for the ρ ∂Vx /∂t = -∂P/∂x 130 years after Dickens, a top-notch two other components of the velocity ρ ∂Vy /∂t = -∂P/∂y scientist was sitting in ‘The Tent’, measurement, he wonders? ρ ∂Vz /∂t = -∂P/∂z Schlumberger’s research building where ρ is the density of water. in Cambridgeshire. The building Using Crossline Data As mentioned above, Vz is used is a theater of exciting technology, Let’s go back to basics. The acoustic together with P in 2D deghosting. If x providing a stimulating intellectual wave equation governs the propagation denotes the inline, streamer direction, environment for world-class scientists. of acoustic waves through the Earth there is no direct value of any Vx It is recognized for its active geophysics and the water layer where the streamers measurement since the hydrophone department working on a wide range of are towed. It describes the evolution of spacing is so dense for point-receiver

WesternGeco Trident leaving Cape Town earlier this year after an IsoMetrix marine seismic technology upgrade. WesternGeco

68 GEOExPro September 2014 recording that ∂P/∂x can readily provides a bridge between continuous be derived from conventional bandlimited signals like seismic pressure measurements by difference wavefields and discrete signals WesternGeco approximations. The question is, (digitally sampled wavefields), allowing what use can one make of the ∂P/∂y the representation, without loss of information, the pressure derivative information, of continuous signals by in the crossline streamer direction discrete sequences, which can then be provided by the Vy measurement? Due processed digitally. The classic sampling to the wide streamer spacing, ∂P/∂y theorem asserts that a bandlimited cannot be derived from the pressure signal can be perfectly reconstructed measurements, which are severely from its equally-spaced samples taken undersampled in that direction. at a rate which exceeds twice the highest frequency F present in the Reconstructing Signals signal. A time function which has no That is the question the Schlumberger frequencies outside the interval [0,F] scientist asks himself; then he sees the can be reconstructed exactly from its potential of having access to the ∂P/∂y values at sampling points Δt=1/(2F). information. It is related to the theory This mathematically ideal interpolation of discrete sampling, where one of the result is called Whitaker-Shannon’s limitations is the effect called aliasing. (1914, 1949) interpolation formula or IsoMetrix streamers deploying into the sea. They deliver point-receiver sampling of pressure Once more, we step back to basics. sinc interpolation. Shannon referred to P from hydrophone and particle velocities Vy Δt An example of aliasing can be seen the critical sampling interval =1/(2F) and Vz in Y and Z directions from MEMS-based when watching wagon wheels in old as the Nyquist interval corresponding to measurements of acceleration. Westerns. Occasionally wheels seem to the band F, in recognition of Nyquist’s go backwards when the wagon speeds discovery (1928) of the fundamental samples of the signal and its first up, as the rate at which the wheel’s importance of this interval in derivative at half the Nyquist rate, spokes spin approaches the rate of connection with telegraphy. Δt=1/F. lt was Fogel (1955) who first the camera sampler. The same thing An interesting extension of took up Shannon’s suggestion that a happens in seismic data acquisition Shannon’s interpolation formula function might be reconstructed from between the spatial sampler and the involves the reconstruction of a its samples together with samples of spatial signal (or wavefield) being bandlimited signal from samples of the derivatives. In Jagerman and Fogel sampled. the signal and its derivatives. Shannon (1959) an explicit formula was given, Sampling is a fundamental theory in (1949) had remarked that a bandlimited with a few applications where the signal processing and its applications. It signal could be reconstructed from sampled derivatives were needed. Their

This example compares images of intricate Paleogene sand injectites, which are commonly associated with reservoir units in the North Sea. The IsoMetrix technology resolves these complex structures in all directions, unlike the hydrophone-only conventional equivalent. WesternGeco

GEOExPro September 2014 69 Recent Advances in Technology

conjunction with the pressure data. A true multicomponent streamer would enable accurate data reconstruction in the crossline direction with cable separations for which pressure- WesternGeco only data would be irrecoverably aliased.”

Ideas and Innovation When ‘The Idea’ was presented internally in Schlumberger, it spurred a lot of new thoughts and innovation as the company put some of its best brains on the challenges ahead. How could this work be extended to improve data reconstruction? The solution was published in two key papers inGeophysics in 2010 by Vassallo, Özbek, Özdemir, Eggenberger, and van Manen. The first discussed multichannel interpolation by matching pursuit using pressure and its crossline gradient, while the second showed the possibility of doing joint interpolation and 3D up/down wavefield separation by generalized matching pursuit. Measurement of crossline gradients enables unaliased reconstruction of the seismic wavefield between streamers. The blue waveform represents Reading between the Lines the actual signal, and the red waveform the reconstructed signal. The Schlumberger immediately realized the potential of the figures contrast reconstructed signal with pressure-only measurements idea, seeing that it effectively removed the conventional in conventional surveys (top) versus pressure and gradients in IsoMetrix surveys (bottom). measurement gaps between individual streamers to fully capture the returning wavefield in 3D for the first time. results were generalized by Linden (1959), and Linden and Marine 3D seismic data are typically acquired by a vessel Abramson (1960). equipped with 8 to 18 streamers, towed 50–100m apart, each The importance of this result lies in its application. For the 3–8 km long. Using point-receiver recording, the spatial geophysicist, the implication is that when both the function sampling of the data in the inline streamer direction can be and its derivative are sampled at interval Δt=1/(2F), then as fine as 3.125m, but sampling in the crossline direction is we can reconstruct signals that have frequencies inside the 16–32 times sparser – conventional 3D seismic could better interval [0,2F]. be described as ‘2½ D’. These geometries cannot measure the So what connection did the Schlumberger scientist find full 3D wavefield; as we have discussed, the wavefield in the between sampling the pressure wavefield and its crossline crossline direction can be spatially undersampled, or aliased, derivative ∂P/∂y? Access to ∂P/∂y, provided by the Vy and may not allow accurate imaging of the subsurface, measurement, can help interpolation of data between the especially in complex geology. streamers. More precisely, in between the physical streamers, The new data acquisition technology was called IsoMetrix, the data reconstruction theory based on pressure and pressure since the term isometric comes from the Greek for ‘having derivative measurements could be used to predict what the equal measurement’. Simply stated, IsoMetrix provides a wavefield would be on densely spaced virtual streamers. The technique to output equal sampling in both crossline and Vy measurement would help the geophysicist to ‘read between inline directions from measurements of a wavefield that is the receiver lines’. undersampled in the crossline. The first hint of the IsoMetrix solution was published by Johan O. A. Robertsson and co-workers at Schlumberger Streamer Noise Mitigation and WesternGeco in the 2008 October issue of Geophysics. Another key challenge to be solved was reducing noise in They wrote in their now landmark paper: “Three-component the streamer. The development of a streamer that measures measurements of particle motion would bring significant the signal component of particle acceleration was difficult benefits to towed-marine seismic data if processed in because motion sensors are extremely sensitive to acoustical

Point-receiver measurements enable accurate characterization and subsequent removal of dominant noise modes. This example shows a snapshot of the shape of a 400m streamer section as it is towed through the water (blue represents the top of the streamer and red the bottom). Compressional, transversal and torsional motions all generate noise in the accelerometer measurements. WesternGeco

70 GEOExPro September 2014 vibrations within the cable itself. with conventional acquisition techniques. It enhances Schlumberger engineers started developing a new type of acquisition efficiency without compromising sampling or streamer, ‘Nessie-6’, which combines traditional hydrophone bandwidth. Fine spatial sampling can be achieved with scalar wave measurements with calibrated point-receiver, relatively wide streamer separation, maximizing areal multi-measurement accelerometer sensors. These are based productivity. Furthermore, the IsoMetrix deghosting on micro-electromechanical system (MEMS) technology, capability means that the entire length of the streamer spread and are used to record the full particle acceleration, giving now can be towed deeper than with conventional systems, access to both vertical and horizontal crossline derivatives benefiting from a quieter acquisition environment and of pressure. Nessie-6 samples the streamer-borne noise extending the weather window. sufficiently for it to be accurately characterized and then Acknowledgment: removed by digital filtering for both the pressure and The authors would like to thank Chris Cunnell of WesternGeco for acceleration measurements. assistance with this article. Range of Applications References: Robertsson, J.O.A., Moore, I., Vassallo, M., Özdemir, A.K., van To summarize, the cornerstone behind the IsoMetrix Manen, D.J., and Özbek, A., 2008, On the use of multicomponent technology is that when the derivative of the pressure is streamer recordings for reconstruction of pressure wavefields in measured in the crossline direction along with the pressure the crossline direction, Geophysics, 73, A45-A49. wavefield itself, on streamers separated by 75–100m, one Özbek, A., Vassallo, M., Özdemir, K., van Manen, D.J., and can reconstruct the pressure wavefield between the cables, Eggenberger, K., 2010, Crossline wavefield reconstruction from creating a set of very densely spaced virtual streamers. multicomponent streamer data: Part 2 — Joint interpolation In addition, with the measurement of the derivative of and 3D up/down separation by generalized matching pursuit, the pressure in the vertical direction, the measurements Geophysics, 75(6), WB69–WB85. together enable full 3D deghosting to extend the seismic Vassallo, M., Özbek, A., Özdemir, K., and Eggenberger, K., 2010, bandwidth. This fine sampling makes the data suitable for Crossline wavefield reconstruction from multicomponent streamer a wide range of interpretation and modeling applications, data: Part 1 — Multichannel interpolation by matching pursuit including high-resolution near-surface imaging, deep (MIMAP) using pressure and its crossline gradient, Geophysics, reservoir characterization, and 4D (time-lapse) reservoir 75(6), WB53–WB67. monitoring. Geo Expro Vol. 9, No. 5 http://www.geoexpro.com/magazine/vol- IsoMetrix technology offers a number of benefits compared 9-no-5

Production Geoscience 2014 REKLAME BANKEN. COM The Programme Committee November 4th - 5th 2014 would like to invite you, and Radisson Blu Atlantic, Stavanger www.geologi.no your colleagues, to submit papers and/or posters for the 2014 Production Geo- science Conference around the themes outlined below:

• Resource utilisation • IOR/EOR initiatives (mature fields/tail end production) • Core Workshop • New technical insights/techniques • IOR/EOR initiatives (new developments / projects)

GEOExPro September 2014 71 GEO Physics Reservoir Rocks Behaving Differently Seismic wave propagation through fractured or porous and permeable reservoir rocks creates frequencies not generated by the seismic source, providing a new method to identify and directly map hydrocarbon accumulations. THOMAS SMITH

Hydrocarbon reservoirs have certain characteristics that differentiate them from all other subsurface

Sofia Sofia Khan sedimentary rocks. These differentiating properties are porosity, permeability, and pore fluids. To build an accurate geologic model of the reservoir and improve the success of exploration and development efforts, these reservoir characteristics have to be properly imaged. Sofia Khan, President of Nonlinear Seismic Imaging, Inc., introduces a suite of proprietary methodologies using these differentiating properties to address and upgrade assumptions made decades ago. “We directly image the unique signal that is being generated in porous, permeable and fractured reservoir rocks, and not being generated in other sedimentary rocks. As an end product, we will directly identify hydrocarbon accumulations and simplify the exploration effort.” Sofia Sofia Khan Normal marine seismic survey being shot over subsurface zone of interest 2. Using a patented method described in the section ‘Mapping Reservoir Rocks Using Frequency Spectral Broadening and the Presence of the Slow Wave’, seismic maps reveal newly created frequencies generated in the reservoir itself and not from the original source. These newly created frequencies indicate the particular formation is porous and permeable. A shows low frequencies from 0-5 Hz and B shows high frequencies from 100-125 Hz. The dark areas on both maps highlight the actual location and extent of the reservoir based on the generation of frequencies that are only present in the permeable, porous, fluid- saturated rock. Interestingly, the results of the low and high frequencies have verified each other – the results look the same in each case. Drilling has verified oil within the mapped reservoirs.

72 GEOExPro September 2014 Understanding Seismic Waves in Reservoirs “Current seismic practices generally ignore the effects Dynamic Elastic Nonlinearity of dynamic elastic nonlinearity and treat sedimentary “Dynamic elastic nonlinearity can be used to distinguish rocks as elastically linear,” Sofia points out. “Implicit in the reservoir rocks from all other subsurface rocks. Its effects assumption of linearity is the fact that the seismic wave are measured by the interaction between the seismic or pulse, recorded after being reflected and refracted, can waves during their propagation through the porous, contain only those frequencies present in the input signal fractured, and fluid-saturated reservoir rocks. Reservoir – referring to the original seismic pulse that was initially rock which acts like an elastically nonlinear medium transmitted. In the assumption of an elastically linear generates new frequencies that may not be present system, no new frequencies can be generated. in the original signal. The principle of superposition “Another assumption made is that the contribution generally applied to elastic linear systems does not hold, of a newly generated seismic wave in the reflected and and the propagating waves interact with each other. refracted signals from a porous and permeable rock If two frequencies simultaneously propagate through formation is negligible and can be ignored,” continues the reservoir rock, sum and difference frequencies Sofia. “Using current conventional data processing, which are generated. Slow Wave or Drag Wave is generated, does not realize the existence of this wave and does traveling through reservoir fluid interconnections at a not account for its lower velocity in the reservoir rocks, lower velocity than the velocity of the compressional its reflection is mapped as a ‘shadow’ or ‘ghost’ of the wave in the rock matrix. This creates lower frequencies, compressional wave reflection. This is an artifact created and the measurement of the lower velocity and by the lack of understanding of actual behavior of seismic frequencies can be used to map subsurface permeable wave propagation in porous and permeable reservoir formations,” Ms. Khan explains. formations.” Seismic attributes related to propagation characteristics of the compressional wave and Slow Wave or Drag Wave The unique signal generated by the slower are more sensitive for mapping reservoir properties compressional wave in permeable, porous and compared to currently used seismic attributes which relate to velocity, attenuation, and modulus. This nonlinear fluid-saturated rock directly identifies hydrocarbon component, generated due to relative movement of fluids accumulations. and reservoir matrix, is caused due to hysteresis effects of fluid movement. The effect is more pronounced for higher Ms. Khan takes into account the presence of seismic viscosity pore fluids like oil when compared to gas or water. waves generated in reservoir rocks and how their reflection and refraction properties can be effectively used as a seismic attribute for direct reservoir imaging. “In reality, reflected Imaging this unique signal that is generated by the slower and refracted signals from a porous and permeable rock compressional wave only in rock which is permeable, porous formation have two components. Part of the propagating and fluid-saturated will directly identify the hydrocarbon energy is reflected and refracted from the rock matrix accumulations. and part of the energy is reflected and This magnified illustration of a reservoir shows how seismic energy takes a tortuous path through refracted from the pore fluids contained interconnected pores. Part of the energy of the compressional wave travels through the rock matrix in the rock formation. Throughout mineral grains, while part travels through pore fluid connections and is known as Slow Wave. the published scientific literature, the compressional energy in the permeable Sofia Sofia Khan rocks, which travels through the pore fluid interconnections in a tortuous path, is known as Slow Wave because its velocity is slower than the fast compressional wave.” Slow Wave, as defined by known literature, is diffusive and highly attenuated, and therefore difficult to measure in-situ in reservoirs. “Drag Wave™” is a form of Slow Wave in that its velocity is also measurably slower than the fast compressional wave. This Drag Wave can propagate over long distances through and across the entire reservoir because it is generated by the solid/liquid coupling as the fast compressional wave propagates through a rock that is permeable, porous and fluid-saturated.

GEOExPro September 2014 73 GEO Physics Sofia Sofia Khan

This frequency graph illustrates the concept of frequency spectral broadening due to seismic wave propagation in the reservoir formation. A represents the average value of the frequency spectrum and B has resulted from the spectral broadening due to the seismic wave propagation in the reservoir. New frequencies created are shown as yellow areas C (lower frequencies) and D (higher frequencies). Pink area E is the loss of amplitude of the mid- frequencies due to energy lost in harmonic generation. The spectral changes C, D and E are caused by elastic nonlinearity of the reservoir formation and are used as a seismic attribute to identify reservoir rocks. For example, the CDP-stacked seismic reflection of the lower frequencies C will only display the hydrocarbon bearing (nonlinear) reservoir rocks as depicted by the dark areas in the image on page 72.

Mapping Reservoir Rocks Using Frequency Spectral for land seismic imaging today is using surface vibrators and Broadening and the Presence of the Slow Wave emitting a swept frequency signal, then processing the data In areas where either explosive or some form of impulse after cross-correlation with the input signal. Drag Wave is seismic source is used, the nonlinearity component is an important signal that is being ignored because the cross- generated in reservoir rocks due to the slower compressional correlation with the primary swept frequency acts like a wave known as Slow Wave. Additionally, low frequencies powerful filter and discards all other signals being generated. are generated due to summing and differencing of discrete Direct Reservoir Signature using the Drag Wave is a new frequencies which are part of the input signal wavelet and way to acquire seismic data, highlighting information that have the broadening effect of the spectrum of the original is currently being ignored. The beauty of this technology is input signal. In both cases, lower frequencies are created that it preserves the normal data being recorded currently which were not part of the input signal. and additionally provides another seismic cross-section, It is important to record the total bandwidth and retain which displays only the reservoir rocks. the lower frequencies generated by the subsurface reservoir One main advantage of this new method is that the rocks so that the lower frequencies are preserved. These lower lower frequency generated due to the Drag Wave is totally frequencies below 10 Hz can be used to highlight reservoir unique and cannot be mistaken by the harmonics or formations using filtering methods that will isolate and display interaction of frequencies. This lower frequency becomes (separately) low frequencies in the zone of interest all the a very reliable indicator of the presence of subsurface way down to 1 Hz. These lower frequencies will represent the reservoir formations. nonlinearity component generated in subsurface reservoir In this manner, we can identify potential areas which rocks. A significant contribution of these lower frequencies is will be of interest for hydrocarbon exploration and caused by Slow Wave generated when a compressional wave discard areas that do not show any potential prospect of travels through a permeable, porous and oil-saturated reservoir. finding any reservoir fluids in the subsurface. This simple exploration technology will eliminate drilling unnecessary Direct Reservoir Signature Using the Drag Wave wells since the absence of the reservoir signature also For normal recording operations, the most prevalent method indicates the absence of any fluid-saturated reservoir rocks.

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GEOExPro September 2014 75 GEO Physics

While recording conventional Vibroseis data after certain prescribed distances, a monofrequency input Sofia Sofia Khan signal G, J is transmitted (for example 40 Hz) to evaluate the presence of reservoir rocks underneath that source location. When a compressional wave travels through a permeable and fluid-saturated reservoir formation, the Drag Wave travels through reservoir fluid interconnections at a slower velocity than the compressional wave in the rock matrix. Due to the Doppler Effect, a unique lower frequency known as the Drag Wave frequency K is present, for example 10 Hz L. Its character depends on the tortuosity of pore interconnections, presence of pore fluids, and permeability. This information, which is part of this new signal generated in the reservoir (the reservoir signature), is going to be different from one location to the other, based on the reservoir properties. The ratio of the primary frequency J to the Drag Wave frequency L provides the transfer function or conversion factor, which is 4:1 in this example. The transfer function is calculated to convert the swept frequency signal used for conventional seismic recording. This converted swept frequency signal is cross-correlated with the normally recorded signal. The lower frequency is there when the reservoir is present (K), and the lower frequency is not there when there is no reservoir (H).

Reservoir Magic? Early results are showing a strong future for technology that requires little additional cost or effort over shooting conventional Sofia Khan seismic data. The additional images created as a result of this technology will enable companies to map the inter-well geologic profile of the reservoir rock and their flow characteristics. including porosity, permeability and the pockets of oil left behind, in order to achieve more efficient fluid recoveries. All this can be accomplished without huge capital investments and using current hardware and software. “This technology will improve recovery of reserves from existing fields and ultimately discover new fields, providing a layer of confidence before drilling not currently seen in the industry,” says Sofia Khan. “Directly locating hydrocarbons with unique solutions and unambiguous results will clearly identify those left behind in existing fields. It will also be extremely useful for reconnaissance work in unexplored and underexplored areas of the world by confirming or declining the presence of reservoir rocks, drilling new wells only where newly generated lower- frequency signals are present.” Sofia Khan, President of Nonlinear Seismic Imaging, Inc., grew up in the world of international oil and gas exploration with Editor’s note: The technologies described in this article are her father, Tawassul Khan. She has led a dedicated effort, patent-protected. While real world examples of their validity along with her father, to the advancement of technology for oil exist, confidentiality precludes their use. discovery since founding the company in 2001.

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Geologist Dr. Jeroen industry’s performance, while driving Peters describes his role down safety exposure and reducing costs. Because our earth scientists are as Shell’s Chief Explorer employed in different conventional and and reflects on his career. unconventional exploration ventures across many countries, our team Having been born below sea level in the activities. In addition, through makes a real effort to regularly provide muddy western part of The Netherlands, coordination with the other geoscience opportunities for our professionals I developed an early fascination with disciplines such as geophysics, to share best practices, operational mountains. It quickly became clear production geology and geomatics, experiences and new technology that geology was a good match with my we align competency frameworks, applications through global and regional other interests, such as sports, hiking coordinate and optimize training conferences, workshops, joint reviews, and my other passion, photography. I programs, and facilitate numerous staff webcasts and other events. studied in Amsterdam where, following moves. Before becoming Chief Explorer in a B.Sc. in Geology, I completed an M.Sc. As part of capability building, Shell 2012, I was Regional Exploration Vice- in Structural Geology and a Ph.D. in maintains numerous formal and informal President for Europe. This role confirmed Marine Geology. I joined Shell in 1985. connections with academic institutions to me yet again the importance of visible Over the past 29 years, I have lived and professional societies across the safety leadership in the execution of and worked in The Netherlands, the world. These partnerships allow the exploration activities. One of my key UK, Oman, China and Brunei. I have sharing of knowledge and ideas, driving learnings from visits to operational sites had an exciting mix of technical and forward research and development, has been that a strong HSE performance managerial roles at Shell, covering and thus improving how we run our has a positive impact on operational exploration ventures (with plenty of business. In addition, I am a member performance and costs. I regularly interesting seismic and well activities), of the Corporate Advisory Board of the participate in operational visits and try new business development, oil and American Association of Petroleum to join one or two field trips a year, which gas production and, last but not least, Geologists (AAPG), and I also support provide excellent opportunities to engage Health, Safety and Environment (HSE). their Distinguished Lecturer program. with exploration staff outside the office During the early stages of my career environment. In fact, such informal I really benefited from sound advice Excited by Opportunities conversations with colleagues give me from senior colleagues. Such coaching Regarding technology, continued the best insights into our business. helped me tremendously in familiarizing investment is essential to develop and Reflecting on my experiences so myself with some of the fundamental deploy new technologies in both fossil far, my advice to students who are techniques and processes in our fuels and alternative energy sources. considering following a geoscience industry, as well as raising my awareness As Chief Explorer, I am excited by the career and joining the energy sector of what not to do, especially in terms of seemingly endless stream of opportunities is that there will continue to be seismic and well operations. for improved and cheaper de-risking great opportunities. Given the fast My current position of Chief Explorer of oil and gas exploration prospects developments in technology against a is primarily a functional role, and through technology, for example, using background of continuously evolving includes being the global discipline head enhanced seismic acquisition and global political, economic and for exploration geosciences (600+ staff) processing, 3D imaging techniques, environmental circumstances, I expect and leading the geoscience technical novel drilling tools, geoscience modeling that – like in the past – there will be assurance activities in global exploration. software and more efficient IT and data no lack of activity or excitement in our My immediate team consists of management. Moreover, linked to the highly dynamic industry. experienced professionals who support growth in unconventional exploration Jeroen Peters at Lipari in the Aeolian Islands. the various regions and business units and development, we have widened the in efficiently and safely maturing and scope of subsurface research to focus executing exploration activities around on the properties of shales and mud the globe. We have four focus areas in rocks (yesterday’s source rock is today’s our Exploration function: staff capability, reservoir…). technology development and deployment, Rapid developments in sensor global exploration processes, and technologies and autonomous deployment connectivity amongst the large number of techniques, especially when combined geoscientists across Shell. with improved exploration processes and Capability and staff development get workflows, mean that there is a plethora significant attention in Shell. My role of new things to try out in the field. In ranges from overseeing recruitment and combination with rigorous application development of new professionals, to of in-house project management and technical and business ‘on-the-job’ and play-based evaluation processes and tools, formal training, as well as leadership these technological developments offer training and diversity and inclusiveness the opportunity to really improve the

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SYSTEMS ACQUISITION LICENSING PROCESSING IMAGING

fairfieldnodal.com Exploration activity has previously bypassed the basins offshore western and southern Greece. With the Left: Schematic map showing the external newly available GeoStreamer® with GeoSource™ dataset, the region is now ready to be explored. The Below: Map of Greece showing the new geotectonic zones license blocks have been delineated and the offshore area has been subdivided into four regions: North data coverage and the exploration onshore and offshore Imaging the Next blocks extending along the western and Greece. Modified Ionian, Central Ionian, South Ionian and South of Crete. Within these regions, the Apulian Platform and the southern offshore area. The foldout line from Pichon, et al. geotectonic zones of Paxi and Ionian occur to a varying degree, each contributing to the extends across the North Ionian region (2002) and Monopolis and is indicated in yellow. & Bruneton (1982). petroleum systems according to their individual geological history. Hydrocarbon Province Exploration in the offshore western Greece region to date has resulted in one discovery (Katakolon, 1981). Furthermore, two thirds of the 14 exploration wells drilled offshore With the new Liensing Round Offshore Greece and recent Greece had gas/oil shows and hydrocarbon seeps are abundant both onshore and offshore. light-oil discoveries onshore Albania (Shpiragu-2), the focus is A seismic line (in TWT) from the North Ionian region, which extends across the Apulian Platform (south-east) and into the surrounding basins (north-west). Major geological horizons have been interpreted, and the line displays the diversity of possible plays in the region, with, for example, re-sedimented carbonates along the platform margin, the carbonate platform once again on the southern Adriatic region margin itself, basinal buildups and inversion structures. An increase in acoustic impedance is represented by a trough. North-West South-East TWT (s)

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Seabed 5.500 – Messinian unconformity Jurassic-Eocene platform Mass transport deposit

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80 GEOExPro September 2014 GEOExPro September 2014 82 Unlocking Offshore Greece : New Regional GeoStreamer Dataset Provides Key Answers MARI SCHJELDSØE BERG and ØYSTEIN LIE, Petroleum Geo-Services (PGS ) EPOCH APULIAN PLATFORM PAXI (PRE-APULIAN) IONIAN PERIOD SPYRIDON BELLAS and Pleistocene

ANTONIS ANGELOPOULOS, Pliocene

Greek Ministry of Environment, Messinian evaporites Energy and Climate Change (YPEKA), Petroleum Policy Directorate Shales & sandstones

In preparation for the 2014 licensing round that Miocene NEOGENE opens in September, PGS have, on behalf of YPEKA, ? acquired 12,500 km of 2D seismic data offshore Marls western and southern Greece. The exceptional Flysch Oligocene quality of the new seismic data has allowed a ? confident delineation of the stratigraphic record and Eocene PALEOG. the various play types. The exploration blocks are Paleocene now defined and, with the regulatory framework in place, the region is ready to be further explored. Late

Vigla With renewed interest offshore south-eastern Italy and shales recent light-oil discoveries onshore Albania (Shpiragu-2), the focus is once again on the southern Adriatic region.

CRETACEOUS Early The Hellenides and the Albanides together are the mirror Pelagic limestones Shallow water image of the Apennines, with discoveries in the external carbonates geotectonic zones and the fore deeps. There is a range of potential traps, including sub-thrust traps in the external zones, the karstified carbonate platform, re-sedimented Late carbonates along the platform edges, and stratigraphic Middle Posidonia pinch-outs within and at the basin margins. These are shales just a selection of the possible traps observed in the new JURASSIC Early dataset from the under-explored offshore Greece region. Late Burano Fm. Geological Background Middle TRIASSIC Early Siliciclastics & carbonates The geology of western and southern Greece has been Late influenced by the movements of the Eurasian and African Early plates since late Cretaceous times, when they began PERMIAN to converge and collide. The result is the Peri-Adriatic Schematic stratigraphy including hydrocarbon potential across the Apulian Platform, Pre-Apulian (Paxi) and Ionian zones. Modified orogenic belt that extends from the Maghrebides in the from Argnani (2013). south-west, via the Italian Apennines and extending eastwards, covering the Croatian Dinarides, the Albanian With the onset of convergence and growth of the fold- Albanides, and the Greek Hellenides. The Hellenides are a and-thrust belt, a foreland basin developed in the west; fold-and-thrust belt, and the prospective outermost part, the carbonate deposition ceased and flysch dominates the External Hellenides, encompasses the Ionian zone, the post-Eocene succession in the Ionian zone. With the Paxi zone and Apulian Platform. These geotectonic zones re-flooding of the Mediterranean in post-Messinian times, originated during the Mesozoic rifting of the southern the Apulian platform was drowned and clastic input from Tethys margin, creating a platform-basin configuration. the west-verging Hellenides and east-verging Apennines The stratigraphic succession of the external zones dominates the Pliocene to Recent strata. and the carbonate platform comprises predominantly Several source-rock intervals exist within the External Triassic breccia and evaporites, overlain by Jurassic to Hellenides, mainly the Triassic Burano Formation or Eocene platform and pelagic carbonates, with younger equivalents, which was deposited in a restricted basinal, carbonates in the Paxi zone and on the Apulian Platform. marine environment adjacent to the carbonate platforms The platform is dominated by dolomitization in the Early from Middle Triassic to Liassic time (Zappaterra, 1994). Mesozoic succession, and by karstification in the Late During the Jurassic rifting related to the Tethys Ocean Mesozoic and Early Paleogene succession. In the basin created a platform-basin configuration (Gavrovo/Apulian (Ionian), pelagic carbonates with cherts are abundant. – Ionian) and the organic-rich Jurassic Posidonia beds

GEOExPro September 2014 83 TWT – (s) 1.000 – – 2.000 – – 3.000 – – 4.000 – – 5.000 – –

6.000 – Seabed – Messinian unconformity Mid Miocene unconformity 7.000 – Top Eocene carbonates – 10 km Top Triassic evaporites 8.000 – Basement – Interpreted south-east to north-west line across the Central Ionian area, showing the thrust-related Triassic salt diapir in the center, with the rotated beds adjacent to the salt. The Messinian unconformity (yellow) is dominant in the area, in places clearly showing the erosion of Early Miocene deposits. An increase in acoustic impedance is represented by a white trough.

(Ammonitico Rosso equivalent [Mavromatidis, 2009]) reflectors, the latter indicating the presence of gas hydrates. were deposited within these rift-related sub-basins. The Cretaceous was the quiescent post-rift period during Open Licensing Round which continuous subsidence of the basin created stagnant Greece is offering significant investment opportunities and conditions in deeper waters and allowed the deposition of attractive areas for exploration in the upcoming offshore the organic-rich Vigla shale member (Karakitsios, 2013). license round, which is expected to open in September 2014, with applications required within the following six months. Several Play Types Twenty exploration blocks have been defined, the block sizes The development of the Hellenides nappes created potential varying from approximately 2,000 km2 in the north up to hydrocarbon traps in the external zones in the form of 9,000 km2 in the south (see map on page 82). sub-thrust traps, a play which is proven to the north in the The initial exploration stage (divided into three phases), Albanian part of the Ionian zone (e.g. Finiq Krane, Delvina, linked to a specific work program, is eight years, extendable Ballsh Hekal). Strata upturned adjacent to salt diapirs, under specific terms, whereas the exploitation period based developed as a result of halokinesis, commonly form traps. on a development and production plan is 25 years, which can This trapping mechanism, frequently encountered along be extended. The lease agreement is based on a royalty and the passive margins of West Africa and South America, is tax arrangement. Fiscal terms are attractive, with income observed in the Central Ionian region (see image above). tax of 20% and regional tax of only 5%. Block awards are Stratigraphic traps are common in the Neogene clastics expected to be announced in the third quarter of 2015. of the Albanian Ionian zone, where molassic South-west to north-east line from the South of Crete region. Messinian salt is deposits unconformably overlie Oligocene flysch present and covers the underlying strata. The light blue horizon is interpreted to be and carbonates (Patos-Marinza and Kucova). They an intra-Mesozoic carbonate platform reflector. An increase in acoustic impedance is are equally important in the Northern and Central represented by a white trough. Ionian regions. Further west, within the Paxi zone 2.500 – and on the Apulian Platform, the Italian analogs – 3.000 – come into play, with karstic reservoirs (e.g. Rospo – Mare), carbonate buildups (e.g. Giove) and shelf 3.500 – – edge deposits (e.g. Falco), all proven plays. 4.000 – The Southern Ionian and South of Crete – 4.500 – regions are vast unexplored territories where – several interesting features have been imaged 5.000 – – for the first time. Amongst them are sub- 5.500 – Messinian anticlines and large anticlines within – 6.000 – Seabed the Miocene sediments (right). There are three – Top Messinian evaporites main play types in this area: the fold-and-thrust 6.500 – Base Neogene belt; anticlines related to strike-slip movements – ysch 7.000 – Intra Mesozoic platform together with fault blocks related to normal fault – Basement activity; and the Mediterranean Ridge back- 7.500 – – 10 km thrust play. Identified hydrocarbon indicators 8.000 – include mud volcanoes and bottom simulating –

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GEOSCIENCE INFORMATION THAT LEADS TO ACTION Exploration Unveiling The phases of a remote Oil Targets sensing project in the Colombian Amazonia At a Salsa Tempo!

GUILLERMO RE KÜHL President, HytecAltoAmericas S.A.

What is Remote Sensing? (A hint: it is not rocket science!) Remote sensing is a very efficient and effective tool for oil and gas exploration, since it enables the quick acquisition of relevant information and target definition in areas of considerable extent or difficult access, providing an appropriate context for decision making as to further exploration efforts. Using its classic definition, remote sensing is the science and technology of gathering information about an object through the analysis of data acquired by a device that is not in physical contact with it. Such an object, usually an area of interest in an oil and gas exploration program, can be identified, characterized and defined from sensors mounted on board satellites, airplanes or helicopters. Optical remote sensing sensors acquire data through visible, near and short- wave and thermal infrared, which form images of the earth’s surface by detecting the solar radiation reflected or absorbed and emitted from targets on the ground. Different materials reflect, absorb and All images: HytecAltoAmericas images: All emit differently at different wavelengths; thus, targets can be differentiated by their spectral reflectance signatures in the remotely sensed images. The reflectance spectrum of a material,

86 GEOExPro September 2014 being the fraction of radiation reflected as a function of the incident wavelength, serves as a unique signature for the material. This material can therefore be identified from its spectral reflectance signature if the remote sensing sensor has sufficient spectral resolution to distinguish its spectrum from those of other materials. A multispectral imaging sensor is a multichannel detector with several spectral bands, while hyperspectral imaging sensors acquire images in a hundred or more contiguous spectral bands. Furthermore, some remote sensing satellites and airborne active sensors emit pulses of microwave radiation which illuminate the areas to be imaged; these Optical and thermal satellite platforms. are called Synthetic Aperture Radar (SAR) Sensors. Images of the earth’s surface presence, content and type of vegetation, sensing technologies. are formed by measuring the microwave humidity and topography. The remote sensing study comprised energy scattered by the ground or sea Hence, the analysis of the presence and different phases that were all carried back to the sensors. These satellites carry abundance of such minerals and soil or out during 2012. After the careful their own ‘flashlight’ emitting microwaves vegetation chemical anomalies, together selection of imagery data during the to illuminate their targets. The images with the existence of thermal anomalies acquisition phase, followed by the can, therefore, be acquired day and night combined with a comprehensive effective preparation, processing and and have the additional advantage that study of the structural geology and interpretation of the spectral data, they can penetrate clouds, so images can geomorphology of the area, facilitates a number of prospective oil and gas be acquired even when the earth’s surface the identification of hydrocarbon-related exploration areas were identified. is shrouded in mist. potential target areas. The initial phase of the survey involved the selection and acquisition of all the With a Little Help From Space Understanding the Big Picture ASTER, LandSat 7 ETM+, LandSat 5 TM, The rationale behind the application of In 2012 HytecAltoAmericas S.A. LandSat 4, MODIS, SRTM, and PALSAR this technology in oil and gas exploration was contracted by the Colombian imagery over the entire study area. is that the migration of lightweight Hydrocarbon National Agency (ANH) RADARSAT images were also acquired hydrocarbons to the subsurface can to conduct a remote sensing study in over selected areas. A total of 767 images generate local anomalous areas. These the Vaupés-Amazonas and Caguán- were finally acquired after the careful are characterized by reduction conditions Putumayo Basins in southern Colombia, evaluation of over 13,000 images. that facilitate the development of a variety over an area of approximately 280,000 Preprocessing and processing of chemical and mineralogical changes km2. The objective of the survey was to techniques were applied to the acquired that can be detected through remote detect hydrocarbon prospective areas data during the second phase. These sensing techniques. Possible alterations using satellite, airborne and field remote included atmospheric corrections, include bleaching, the development of The project area in the Colombian Amazonia covered about 280,000 km2. iron and clay minerals, the formation of carbonates and geobotanical anomalies, among others. Surficial and near-subsurface thermal variations produced by hydrocarbon migration can also be recognized with specific sensors. Such variations measured by thermal devices could be a result of endogenous factors, such as anomalous thermal fluid flows, structural boundaries or lithological changes. These are morpho-structural alterations that have to be recognized and interpreted separately from the ones due to exogenous factors related to the

GEOExPro September 2014 87 Exploration geometric adjustments and georeferencing procedures during the preprocessing stage, while geobotanical and geological enhancements, structural filters, thermal calculations, mineral, soil and vegetation indexes were calculated during the processing stage. Both the Stressed Vegetation Index and the Bleaching Index proved to be very useful in the identification of areas of interest. All processes and indexes were applied independently on three previously defined spectral domains (each divided into two regions) in the survey project area that bear different soil and vegetation characteristics. This separation of domains and regions allowed their consistent application and the corresponding accuracy of the interpretation which was later performed. Interpretation of such products allowed the identification of 156 spectral target areas, categorized according to the weight of their spectral, thermal and structural characteristics during the third phase of the survey. Oil seeps registered in regional databases were also taken into account after the interpretation process for validation purposes.

Targets Validated Spectral targets defined with satellite data were field validated during phase four, which mainly comprised an intense airborne hyperspectral survey over selected anomalies and a Validation of satellite spectral target areas suggested that 12% of the ground spectral and geochemical survey over some of them. targeted anomalies could potentially be hydrocarbon accumulations. The airborne hyperspectral data was acquired by means of a radiometer mounted on a helicopter, flying approximately as Total Organic Content (TOC) evaluation. Pyrolisis was 330m above the ground. The decision to use a helicopter rather performed on samples with TOC values over 0.9. than an airplane was a result of the high and extremely dense At this stage it is very important to recall the physiographic cloud conditions of the region, which makes surveying with characteristics and lack of logistics in the study area. Almost all airplanes almost impossible. Data was registered in 1,200 of the surveyed area is covered by a thick impenetrable vegetation narrow bands between the ultraviolet (UV), visible (V), near layer, roads are non-existent and gasoline and minimum lodging infrared (NIR) and short wave infrared (SWIR) portions of infrastructure can only be obtained in a very small number of the electromagnetic spectrum, with a 15 to 30m pixel size, towns or villages – not to mention the known security issues equivalent to the spatial resolution of the acquired satellite data. of the region. Consequently, the field validation phase can be The ground survey consisted of the acquisition of further considered a great success: almost half of the satellite spectral spectral data with a field spectrometer, concentrating mainly anomalies were directly or indirectly field validated by means of on vegetation and soil samples. The latter were also collected the hyperspectral helicopter and field survey program. at specific areas of interest for geochemical analysis such Satellite, airborne and field spectral data as well as the geo A typical landscape in the Colombian Amazonia region – not an easy area to explore for chemical survey results were all integrated hydrocarbons using traditional methods. in a Geographic Information System (GIS) database for its final comprehension, analysis and interpretation. As a result, the location of prospective oil exploration targets within the studied region was defined. The hydrocarbon prospective targets identified cover approximately 45,000 km2, which represents 16% of the whole area. The final weighting process after field validation indicated that 12% of the targeted anomalies showed characteristics which were strong indicators of potential occurrences of hydrocarbon accumulations. Acknowledgment: This article was prepared with the collaboration of Carina Mouronte, Patricio Alcaín and Diego Azcurra.

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GEOExPro September 2014 89 History of Oil

The PESGB Formed just as the first discoveries were being made in the North Sea, the Petroleum Society of Great Britain’s mission is to promote, Celebrates Its for the public benefit, education in the NO PERMITS scientific and technical aspects 50th Birthday of petroleum exploration. JANE WHALEY After the discovery of the giant would be invited to lecture on geo is no record of the topic or speaker. Groningen Field onshore The science and the geology of the North These soon developed into a monthly Netherlands in 1959 (see GEO ExPro Sea, with the new society stressing that feature, and Aberdeen-based lectures Vol. 6, No. 4), geologists’ eyes began it was keen to encourage involvement were introduced in 1984; to date the to turn westwards, wondering if these from academia and the service industry society estimates that it has hosted amazing reservoirs could extend beyond as well as oil companies. To encourage nearly 800 evening lectures. the coastal boundary, under the North frank discussions, and save costs, the Being an organization primarily UP HERE Sea and into British waters. And sure talks would not be published. They also consisting of geologists, field trips were enough, after a few seismic surveys determined that membership fees would naturally high on the agenda. The first and some hasty law-making to define be kept at a minimum to encourage one was conducted in 1965 along the the United Kingdom Continental Shelf all to join, and that it would be run Devon and Dorset coast, to be followed (UKCS), it was not long before the first by a volunteer council, elected by the by over 180 more so far, to destinations British gas field was found – West Sole, as varied as Svalbard and South Africa, discovered in September 1965. as well as classic UK locations. Equally rapidly, the geoscientists From the 40 original delegates at the working in the North Sea realized first meeting in 1964, the membership that they were sorely in need of data, members. Companies involved in oil had grown to 224 members, four reference material and sources of general and gas were also encouraged to become honorary members and 18 sustaining information, not just about the geology, sustaining members of the organization, members by 1968, when the fees but also of the experience of searching and there are now about 80 companies were £1 for members and £10 for Save time and for oil in such a hostile environment. of all shapes and sizes registered in this sustaining members. Just five years later, The first well in the North Sea was capacity. membership had doubled to 500 – and so minimize cost spudded in December 1964, and in Having formed the society, they had the annual membership fee, to £2. with airborne the same month about 40 oil industry lost no time in getting active. The first To update members, membership professionals held a meeting in the evening lecture meeting was held in directories and a newsletter were data acquisition. Westbury Hotel in the center of London January 1965 in London, although there distributed. The latter was originally to discuss the formation of a professional The Sea Gem, a converted barge, made the first hydrocarbon discovery on the UKCS, at West Sole in 1965. With low-touch airborne methods, you can society concerned solely with the geology acquire multi-physics datasets over broad

and geophysics of hydrocarbons in the ©BP North Sea; these guys were certainly areas of existing or potential acreage – with not hanging around! The majority of no permitting required and at a fraction of the attendees had been exploring for the cost. The value of existing seismic and oil overseas, and many had been active well data is enhanced by integrating new and in societies such as the American complementary measurements, including Association of Petroleum Geologists airborne EM, to map resistivity trends in the and saw the importance of such subsurface. Now make more informed decisions organizations for information gathering on relative prospectivity in months, not years. and sharing. The delegates decided to form a new society, to be called the Petroleum Society of Great Britain – the With NEOS, the sky’s the limit. PESGB was born.

Rapid Growth At this first meeting a few simple objectives for the society were outlined. Monthly meetings would be held, providing a forum for explorationists to meet and where eminent speakers Above, Below and Beyond neosgeo.com 90 GEOExPro September 2014 NO PERMITS UP HERE

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Above, Below and Beyond neosgeo.com History of Oil just couple of typewritten sheets, but by 1986 it had developed into the magazine with a range of features and articles that members now receive, which is also an important source of revenue through its advertising.

Conferences and Education In addition to the evening lectures, the organization has built up a reputation for running high quality, pertinent conferences and seminars. These started with the 1974 Petroleum Geology of North West Europe Conference (the PESGB was one of four organizing bodies), which ultimately developed into the seminal series of events commonly known as the ‘Barbican Conferences’, held about every six years. The PESGB is Merle/PESGB Karim also responsible for PETEX, the premier Hamish Wilson, President Elect (SLR Consulting), Oonagh Werngren, President (Oil & Gas UK) and regular geoscience meeting in the UK, John Austin, Past President (OMV) taken at the President’s Evening 2013. which it has been running biennially since 1989. Continually developing, the society North Sea Geology’ course. Since then with 1,600 members and a new branch has more recently added PROSPEX to the it has organised several courses each based in Aberdeen recently opened, the events list, held annually since the first year, covering topics ranging from organization established a permanent ‘UK Prospect Expo’ in 2003. ‘Geophysics for Geologists’ and ‘Sequence office and staff; until then, it had been Education was a keystone in the Stratigraphy’ to ‘Data Management’ and run entirely by volunteers. Always non- foundation of the PESGB, not only ‘Atlantic Margin Frontier Basins’. profit-making, it is now a registered through lectures and conferences but A new development happened charity, with attendant financial benefits more directly through courses. In in 2008, when funds were allocated for both the society and its members. 1981 the organization joined forces to sponsor students undertaking But the most significant change with the Geological Society of London petroleum geoscience-related M.Scs, is probably the way in which the and Imperial College to form the Joint with seven students benefiting that first organization has progressed from being Association for Petroleum Courses, which year, and 81 in total to date. inward-looking, working purely for the ran courses pertinent to exploration, members, to being involved in outreach given by a mix of academics and industry Onwards and Upwards and general education beyond the veterans. These ran until 2001, but The PESGB has continued to evolve and O&G industry, promoting geoscience in 2007 the idea was reintroduced by grow through its 50-year history, but has in schools and education, as well as the PESGB alone, initially running remained close to those core objectives the masters sponsorship program. the always popular ‘Introduction to set out at the first meeting. In 1985, The annual Bob Stonely lecture series is another example of outreach: open The committee of the newly formed PESGB in 1966. to all, it asks well-known people, not necessarily geologists, to explain the

PESGB benefits and relevance to them of the scientific and technical aspects of petroleum exploration. However, it is not all serious stuff. The members are a lively community, and the social and networking aspect has always been very a important and popular side to the PESGB, as can be testified by anyone who has gone on the euphemistically described ‘evening excursion’ (aka pub crawl) during PETEX. So congratulations to the PESGB, keep up the good work and we look forward to the next 50 years!

92 GEOExPro September 2014

Industry Issues

profit from such anxieties. This fear has now spread beyond America to places with nothing more than a modest gas industry experience. My ‘environmental realities’ lecture was a clash between the recalcitrant notion that the worst will happen when the gas industry shows up and my American optimism that gas can be produced at maximum benefit and minimum risk. Several people stated that Europeans do not want fracking until they are sure it is safe. While everyone wants a safe industry, safety is never absolute. In Pennsylvania, for example, where more than 1,000 people are killed annually in automobile accidents, only a handful have died in fracking related accidents since the start of horizontal drilling in 2006. Yet a poll among Pennsylvanians would probably identify driving as the safer activity! The lecture started with a discussion of my research on AAPG Distinguished Lecturer Terry natural hydraulic fracturing in gas shale dating back to the 1970s, which was concurrent with both the first horizontal Engelder assesses the history behind drilling of shale source rocks and the initial use of massive European bans on fracking. hydraulic fracturing in the US. Although both techniques date back 35 years in the USA, none of this early work on fracking During a recent trip to Europe as part of my AAPG made much of an impression on the public. Distinguished Lecture Tour, my most popular lecture proved to be an analysis of the fracking debate ‘The Environmental Risks and Rewards Realities of Hydraulic Fracturing: Fact versus Fiction’ – The process by which fracking entered the general unsurprising considering the sensitivity to the prospect of shale consciousness may have started about 2007 with my gas exploration in much of the continent. My objective was to calculation of the technically recoverable reserves in the address the public fears that drove moratoria on fracking in Marcellus gas shale of the Appalachian Basin. In late 2007 I places as different as New York, the UK, and France. went to the news media with my results, receiving a great deal Central causes of public fear in America were a of public attention. At that time the term fracking was not combination of early mistakes by industry and purposeful part of the English language; within two years it had become disinformation from activists, especially those seeking to shorthand for gas extraction by horizontal drilling and high-

Fracking in action at Lewino in the Northern Baltic Basin in Poland, one of the few countries in Europe with an active shale gas exploration program. San Leon Energy

94 GEOExPro September 2014 volume hydraulic fracturing, and most people now know what fracking is. In Europe, I was frequently asked, “How can you be so certain [about fracking]”? My American optimism must have been shining through, because I point out in the lectures that shale gas comes with risk along with reward. As Voltaire said: “Doubt is not a pleasant condition, but certainty is absurd.” Science is not capable of certainty beyond having a sense of when others are mistaken. As the automobile fatalities example shows, people don’t do a very good job of normalizing risk. When asked for absolute numbers on risk, all I can do is point to the millions of hydraulic fracture treatments and stimulations undertaken already, resulting in a modest number of examples of groundwater contamination from subsurface sources, virtually all from methane leaking along the cement-bedrock contact inside a borehole. Risks outside methane leakage come from poor surface management of fluids in the form of spills and leaks. Air quality is at risk and ultimately, burning methane leaves a carbon footprint. These are concerns. The leaks need to be found and fixed – but replacing coal-

fired power plants with natural gas led to a significant BealeJohn reduction in America’s carbon footprint over the past Terry Engelder is Professor of Geosciences at Pennsylvania State University and a five years, according to the EIA. This good news does not leading authority on the Marcellus gas shale play. mean that mankind should discontinue its march toward a larger renewable energy portfolio. particularly methane, result from drilling. Traditionally, the first oil wells in a region were drilled where A Number of Mistakes oil is leaking to the surface. Methane was there all along but Industry was responsible for six major ‘mistakes’ during the industry failed to present these details to the public prior to early days of high-volume horizontal hydraulic fracturing in drilling. Pennsylvania, for example, had a long history of flaming the Appalachian Basin. I use the term mistake, because each faucets and bubbling stream beds, although the gas was not might have been anticipated, but only by someone with great usually concentrated sufficiently in groundwater to manifest clairvoyance. None was a manifestation of single events like itself in drinking water. Intensified drilling in 2008 produced the engineering carelessness of the Macondo well blowout. a heightened sensitivity to methane in groundwater, but with However, they did create a breeding ground for amplifying no baseline, it was impossible to know whether and how much public fear of the unknown. methane resulted from this drilling. Pennsylvania law held Arguably, the most serious one was the failure to operators responsible for the methane in groundwater within establish baseline water chemistry before drilling 1,000 ft of a gas well, regardless of whether it was their fault. campaigns. Many chemical elements, (e.g. iron, magnesium, The second industry mistake involved the extent to which potassium) and compounds (e.g. methane) are dissolved in casing was cemented. Early on, surface and intermediate casing drinking water, but when water chemistry is measured after was completely cemented but as much as 5,500 ft of open hole the arrival of industry, there is a belief that these chemicals, was left outside the production casing, as traditionally done in

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GEOExPro September 2014 95 Industry Issues sparsely populated parts of the country with few water wells groundwater could be contaminated if a lined pit was near gas wells. This is fine if the overburden section is not gas punctured or seals failed. Presently, only fresh water is stored charged – but in north-eastern PA the overburden contains in open pits. Any flowback is contained in enclosed frack Upper Devonian coals, full of methane gas, which flowed into tanks where the chance of leaking is near zero. the open holes and in some cases likely increased groundwater concentration by leaking along poorly cemented gas wells. Purposeful Disinformation? Industry no longer leaves open-hole production casing, at least Public anxiety arising from these very real mistakes was easily below the intermediate casing string. manipulated and magnified by activists who either did not know better or sought to profit by playing to this fear. The Secrecy and Earthquakes most egregious case of purposeful disinformation being used The use of air-drilling to penetrate the vertical legs of to manipulate the public is found in the closing scene of the Marcellus gas wells was another error. The pressure of air movie, ‘Gasland’, where a tap is lit. The owner’s water well was blowing into more permeable aquifers was sufficient to drive drilled though a coal bed giving off methane, and the film’s methane towards nearby water wells. It also increased the producer admitted knowing that the methane had nothing to natural turbidity in groundwater, which often worries people. do with fracking. A fourth mistake was to lobby for elements in the Energy Public fear can also be manipulated by famous people. Policy Act of 2005 that allowed fracking companies to keep Movie star, Matt Damon, was quoted as saying that ‘Everyone their additives proprietary. The public feared that groundwater knows that fracking poisons the water and air’, adding that would become contaminated by unknown, possibly toxic, fracking, ‘…tears apart local communities and subverts chemicals, and wanted to understand exactly what and how democracies….’ Yoko Ono was quoted in the media as much was being pumped into the ground. There was also the stating categorically that, ‘Fracking kills’. Subsequently, (inaccurate) perception that this act exempted the industry signs declaring that fracking kills have shown up regularly at from Clean Water and Clean Air Acts. The industry elected protest rallies in many places worldwide. to reveal the details of additives on a website, ‘Frac Focus’, The most common prop at protest rallies has been the jug of and, while posting volume and chemical composition was rusty, brown water – easily transported and, unlike the flaming voluntary, most operators in the Appalachian Basin have faucet, looking nasty enough to amplify fear of fracking. Rusty, joined in an attempt to become more transparent. brown water is a natural product of the oxidation of dissolved The industry disposed of flowback in large enough volumes iron. Tests suggest that nearly half the water wells in parts of to trigger minor earthquakes in Ohio and Texas, which Pennsylvania have enough dissolved iron in the groundwater to naturally played into the public fear. Water under pressure make it turbid when exposed to atmospheric oxygen, a process flowing along faults reduces the frictional strength sufficiently accelerated by pumping wells dry. In fact, the US EPA tested to cause slip; triggering a large earthquake by injecting water one water well repeatedly and found the water safe to drink. was even the plot of a James Bond movie. USGS studies Later, the owners admitted pumping their water well dry to confirmed that there is a relationship between the injected supply turbid water when visitors came knocking. volume of water and earthquake size, but showed that it was In summary, public pressure was largely responsible for not possible to trigger a destructive earthquake with the political decisions to place moratoria or bans on fracking. In amount of water used during fracking – incidentally proving a sense, industry was directly responsible for these political the implausibility of the James Bond plot. decisions because of early mistakes, making it easy for The sixth mistake involved management issues associated activists using purposeful disinformation to further cement a with potentially leaking open pits, leading to the fear that negative public position relative to fracking.

Chart showing 2013 unproved 8 17 wet shale gas technically 32 Bulgaria recoverable 128 Source: EIA/ARI resources for Denmark selected European 10 137 France countries. Germany 26 Netherlands Poland 51 17 26 Romania United Kingdom 148 Sweden Ukraine Spain

96 GEOExPro September 2014

GEO Cities

with this growth the city has changed tremendously. It has become an alpine Khanty centre of importance as an annual site for Biathlon World Cup competitions, a winter sport that combines cross-country skiing and rifle shooting. It also held the 2010 Chess Olympiads, the largest international chess team tournament in the world. Events such Mansiysk: as these bring in tens of thousands of tourists, who flock to the city from all around the world.

Oil, Sport and An Oil City The source of this economic growth in a small Siberian city Woolly Rhinos far away from larger populations is, of course, entirely due to the discovery of oil in the region. The greater Khanty Mansi Khanty Mansiysk may be a very long Autonomous Okrug region contains around 70% of Russia’s developed oil fields, about 450 in total, including Samotlor, way from anywhere, but it is a rapidly which is the largest oil field in Russia and the sixth largest in developing city with a growing cultural the world. Gas was first found in the region in 1953 and oil and sporting reputation. began to be produced in 1960, and the region now contributes over 50% of total Russian oil production. ELEANOR ARCHER Khanty Mansiysk is home to the ostentatious headquarters of the country’s main oil giants, including Rosneft, Lukoil Khanty Mansiysk lies seemingly in the middle of nowhere, the and Gazprom-Neft. Enormous drilling towers protrude from capital of a hilly region the size of France called the Khanty the birch forests, while gas flares blaze over the treetops, and Mansi Autonomous Okrug, in Siberia. Human habitation in roads and pipelines cut through the landscape. Around 90% the area dates back 4,000 years, as evidenced by well-preserved of the city’s economic production is directly dependent on the Stone and Bronze Age monuments. It is built on seven hills, oil industry, and everything thrives as a result of it. Even the and is dominated by the river Irtysh and its tributaries. The city art gallery exists only because of oil, with small plaques next experiences a subarctic climate, with extremes of temperature to the paintings purchased from Moscow and St. Petersburg as low as -49°C, causing the rivers and lakes to freeze for most identifying sponsors such as Rosneft and Lukoil. of the year in long, severe winters. It stands far away from the large metropolitan cities, being 2,500 km from Moscow, and Gazprom is one of many Russian even further from St. Petersburg. Even the nearest train station oil and gas companies with is four hours drive away from Khanty Mansiysk. flamboyant new headquarters in And yet, this small city is fast becoming a modern center Khanty Mansiysk. of Russian business, sport and tourism. Its population has more than doubled since 1989 to nearly 90,000 people, and Gazprom

98 GEOExPro September 2014 As well as the annual sporting events, the city also contains used to provide Khanty families with all they needed have multiple places of interest for tourists, including the glittering shrunk into small reservations that are officially called ‘Areas of gold domes of the Church of Christ’s resurrection. It also Traditional Nature Use’. holds museums on art, such as the artist Gennady Raishev’s As well as this, oil spills are affecting the environment. gallery; the Geology, Oil and Gas Museum, which traces the Dilapidated Soviet-era infrastructure has meant that, as of history of Western Siberian oil and gas development; and January 2010, the Ecology Department of Khanty Mansiysk an open air Archeopark, which has bronze sculptures of Autonomous Okrug registered 4,979 accidents, including Pleistocene animals like mammoths and woolly rhino. The 2,417 oil pipeline failures. The total pollutant mass in the park is located at the foot of a hill known as Samarovsky, environment amounted to 5781.4 tons. The region’s biggest which is composed of Eocene sediments, usually buried at river, the Ob, alone releases 125,000 tons of crude oil into the greater depth in this area. Its origin is a matter of controversy, Arctic Ocean annually, according to Greenpeace. As a result but it is possibly a larger erratic, deposited here at the edge of of this oil in the natural environment, the rivers and soil an icesheet during the Pleistocene. can no longer so successfully supply the fish, vegetation and grazing grounds the indigenous tribes need to survive. A Heavy Cost? Many would argue that this flourishing The Samotlor Field, located at Lake Samotlor in Nizhnevartovsk district, is one of the fields which has led to the development of the Khanty Mansiysk region. It is the largest oil field of Russia and the sixth city and the oil and gas it provides for biggest in the world and was believed to hold 55 billion barrels of oil in place when discovered in 1965, the rest of Russia and beyond comes at but now is probably 80% depleted. a heavy cost through the destruction of the environment and damage to the indigenous people who lived on it for thousands of years. The people native to the region are the Khanty and the Mansi, who survive off the land through fishing, hunting and reindeer herding. They traditionally migrate around the Vladimir Melnikov/Dreamstime.com area with the seasons, from winter settlements to seasonal hunting grounds. However, since the growth of the oil industry in the region, the livelihoods of these peoples have been affected. The land is owned by the state, and therefore vast areas of forest used by the Khanty and other tribes for building settlements and canoes have been cut down or burnt in order to make way for the construction of roads, housing for workers and pipelines. Endless Siberian forests that

GEOExPro September 2014 99 Exploration Update The world’s most significant discoveries brought to you by IHS and GEO ExPro Tanzania: Third LNG Train Likely? energyOphir The partnership ofBG (operator) and Ophir has confirmed an important new gas discovery in deepwater Block 1, Tanzania. Drilled using the ‘Deepsea Metro 1’ drillship, the Taachui 1ST well, close to the western boundary of the block, was sidetracked for operational reasons and was drilled to a total depth of 4,215m. The well encountered net gas pay of 155m within Lower Cretaceous clastics as expected, while the gross column reached 289m. It flowed gas at a stabilized rate of 14 MMcfpd and mean recoverable reserves are estimated at 1 Tcf. The size of the gas column is such that the discovery could extend into a second compartment to the west, which has the potential to be of a similar size. An appraisal well to confirm this upside is under consideration by the JV partners. The result extends the proven hydrocarbon system to the eastern limit of, and partly de-risks, Ophir’s East Pande permit on which the Tende 1 well will be drilled in 680m of water later in 2014. In addition, the aggregate recoverable volumes of around 16.7 Tcf are now approaching the threshold needed to underpin a potential third LNG Train from Blocks 1, 3, and 4. The delay prolongs the constitutional uncertainty over whether A drilling success at Tende would de-risk two further prospects the semi-autonomous government of Zanzibar can sign its own within the block, Balungi and Ndimu, which could add almost exploration deal and thus secure all the revenues. The country 2.5 Tcf of natural gas reserves in the Block. was due to put a new constitution to a popular referendum next On the downside, Tanzania’s hopes of becoming an exporter year but the opposition boycott and several missed deadlines of natural gas face fresh delays after the country’s opposition mean the new law is unlikely to be approved before presidential refused to participate in further talks to rewrite the constitution. elections scheduled for October 2015. Pakistan: First Discovery in Eastern Potwar Plateau The Ghauri Joint Venture (GJV) is of the Ghauri Block could be significant, province. Foreign investors have claiming a ‘landmark achievement’ although needing further evaluation. The tended to avoid blocks in that province, with its Ghauri X-1 well, located in partners have assigned in place reserves preferring more secure and lower-risk district Jhelum, Punjab Province in of 22 MMb to the Sakessar Formation, acreage in more established areas in Pakistan, as it is the first hydrocarbon declaring that as they progress the Sindh or Punjab provinces. discovery in the eastern part of the development of the secondary Potwar Plateau. To date seven wells have reservoir Kussak Formation, been drilled in the license area without they will develop a better success. GJV comprises Mari Petroleum understanding of the estimated Company with 35% working interest as reserves within the Ghauri Block. operator, as well as Pakistan Petroleum Pakistan appears still to Limited (PPL) and MOL with 35% and have good potential to increase 30% working interests respectively. domestic production of Drilled to a total depth of 3,990m, hydrocarbons. IHS GEPS studies Ghauri X-1 flowed 23° API oil through suggest that there are 3.6 Bbo a 32/64” choke from the Sakessar and 66 Tcf of natural gas yet to Formation at an average rate of 1,193 be discovered in the country. bopd, which increased to 5,500 bopd However, investment in the after acid treatment, ranking it as one sector by foreign companies has of the country’s top oil-producing wells. been undermined by security Based on initial evaluation of this well test challenges from militant groups MOL believes the potential for this part operating in Balochistan

100 GEOExPro September 2014 Reduce uncertainties Gabon: in seismic processing Some Hope and interpretation for Gas International Eni has made a significant gas and condensate discovery with an exploration Expertise in well testing the Nyonie Deep prospect in Block D4, approximately 13 km from Geological & the coast and 48 km from Libreville, the capital of Gabon. The discovery Geophysical was made in the pre-salt layer of Gabon through the Nyonie Deep 1 well, which Services was drilled to a depth of approximately 4,313m in shallow water. The well ENVOI specialises in upstream encountered a 320m thick hydrocarbon- acquisition and divestment (A&D), in Europe, Africa bearing section in the pre-salt clastic project marketing and portfolio advice and Middle East sequence of Aptian age. The structure, for the international oil and gas industry. which extends over an area of more than 40 km2, extends into Block D3, also operated by Eni. Preliminary estimates suggest hydrocarbons in place could amount to 500 MMboe. This is the third field to be discovered recently in shallow waters in such plays, after Nene Marine and Litchendjili Marine offshore Congo. According to Eni, the total estimated potential of these ACTIVE PROJECTS discoveries is about 3 Bboe. CENTRAL EUROPE Recent years have seen an explosion of interest in the highly prospective (Field redevelopment) West African Transform Margin, but an CAMEROON uptick in exploration offshore Gabon has (Onshore exploration) yielded mixed results. Although Gabon’s deepwater potential offers significant GREENLAND upside, a string of disappointing drilling (Offshore exploration) results may dampen interest in expensive exploration campaigns. In addition, KENYA the absence of a clear investment plan (Exploration) to capture and monetize gas precludes any significant increase in production. TUNISIA Harnessing gas will require infrastructure (Offshore appraisal/development) which the country lacks, and at this time the commerciality of the country’s UK: EAST MIDLANDS offshore gas resources is questionable. (Onshore appraisal/development)

The coast of Gabon near Libreville Manuel Dohmen/wikipediaManuel

VISIT WWW.ENVOI.CO.UK FOR MORE INFORMATION

www.prospectiuni.com GEO Media

The Secret World of Oil NIKKI JONES

The Secret World of Oil (2014) there were ‘no more excuses for dictatorship and corruption’ Author: Ken Silverstein and was the prime mover behind the Extractive Industries Verso Books Transparency Initiative, he now heads a ‘complex, deliberately opaque corporate structure’, and profitably amalgamates his Dodgy practice in the oil industry may appear to be a ‘yawn, roles of Middle East peace envoy, private paid speaker and yawn’ subject – don’t we all know that companies lobby and door-opener for his various employers. Silverstein’s wrath for pay into campaign funds? And aren’t the excesses of oil-rich Blair is only exceeded by his derision for Neil Bush, brother of dictators well documented elsewhere? That may be so – but George, who likewise has joined the ‘con artists and hangers Silverstein’s skim through the world of fixers, traders and on’ that feed off the industry – though quite ineffectually. lobbyists manages to bring new detail, most notably to the under-discussed activities of the Swiss-based commodity Geneva Bandits houses. Although the book sometimes lacks direction or With more skim than detail, Silverstein’s search-light reaches depth, Silverstein’s personal encounters with individuals do Geneva and the relatively under-documented role of the Swiss shed light, providing some fascinating insights and views on commodity houses – Vitol, Mercuria, Gunvor, Trafigura and how the industry is adapting to regulatory challenges. Glencore, once all private companies and therefore not subject to corporate disclosure laws. Silverstein The Changing Role of Fixers poses the question of why Glencore chose So, oil deals are run by fixers, the state-less to float in 2011: the answer appears to be few dozen middle men who live charmed not only the unimaginable wealth that lives, enjoying the confidence of presidents, came to its senior executives, but the funds oil executives and hedge fund managers. generated for mergers with companies Their role is to do the business that oil such as Xstrata. This has enabled Glencore companies either don’t want to know about, to lead the pursuit of the common goal or can’t: they make the deals and take of vertical integration, the ownership of their cut. No surprises – but still many of a spectrum of assets from production Silverstein’s encounters prove illuminating. to refining to shipping. This allows huge As one such fixer, Gulbenkian, explains, ‘leverage of information’ in trading, giving the modus operandi is changing. It used to the commodity houses the ability to be simple – the company seeking an energy move ahead of the markets on correlated concession passed money to the fixer who commodities and currency swings. took his cut and funneled the rest into Interestingly, another reason given for Swiss bank accounts belonging to various Glencore’s coming out of the shadows officials. Hey presto – the company got their is that ethics are improving. The days contract. of sending rust-buckets to Africa are coming to an end, However, the modern pay-off has become more complex according to one trader, since Western banks (though not as states have implemented anti-bribery measures. Suitcases Eastern) have tightened up on their lending and are asking of money have, partly, been replaced with stock market tips more relevant questions. Personal morals remain unaffected, and contracts to buy over-priced assets owned by inner-circle apparently. “We’re all bandits here,” says one Geneva trader, family. “I spent 99% of my time trying to figure out ways to not “You’re accepted as long as you bring a lot of money.” technically violate the FCPA (Foreign Corrupt Practices Act),” The universality of corruption is brought home in the complains one former Mobil executive based in Angola. Fixers chapter on Louisiana, America’s third largest energy- are themselves likely to be buying and selling concessions. producing state that ranks close to the bottom in key development statistics. ‘Legacy lawsuits’ abound, with Human Cash Register landowners attempting to get compensation for contaminated One gets the impression that, despite his ill-concealed disgust, land while the industry fights to keep cases with the regulators Silverstein is not immune to the awe inspired by some of these that they control. The fact that this is a Republican-Republican figures – indeed, he admits to being an ‘unlikely friend’ to Ely battle adds ‘edge’. Calil, one of the ‘anonymous’ elite (although where this book “Americans want their gasoline cheap,” shrugs Ely leaves their friendship, the reader can only wonder). Calil. Silverstein offers no coherent argument against this His contempt is pure and unadulterated, however, when justification of underhand practice: the book is, unfortunately, it comes to Tony Blair with his paid friendships in the ‘dark somewhat random in its selection of targets and occasionally landscape’ of the Caucasus. “Few have donned the pom-poms hard to follow. But for those who want to understand the with as much vigour,” asserts Silverstein, making Blair a secret world of oil, Silverstein definitely adds a few more ‘human cash register’. As the man who, post 9/11, declared pieces to the jigsaw.

102 GEOExPro September 2014 the Borehole image & Core experts

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Specialising in: • Data acquisition • Data processing Bridgeporth Ltd 26 Linford Forum • Integrated interpretation Linford Wood A GLOBAL FOOTPRINT - OFFICES IN TEN LOCATIONS ACROSS EUROPE, NORTH AND SOUTH Milton Keynes AMERICA, THE MIDDLE EAST AND ASIA PACIFIC. COMPLIMENTARY EXPERTISE TO ASSIST • Project management MK14 6LY CLIENTS IN THEIR UNDERSTANDING OF MATURE RESERVOIRS, CARBONATES, DEEP WATER • Research and development t: FIELDS AND UNCONVENTIONAL HYDROCARBONS, ESPECIALLY SHALE GAS WITH OUR +44 (0)1908 667 014 • Security and logistics e: [email protected] INTEGRATED SHALE GAS WORKFLOW • Training and related services www.bridgeporth.com UNIT F KETTOCK LODGE CAMPUS 2 ABERDEEN INNOVATION PARK BALGOWNIE DRIVE BRIDGE OF DON ABERDEEN AB22 8GU UK TEL: +44 (0)1224 357250 www.taskfronterra.com Q & A Delighting in Geophysics Dr. Thomas A. Smith founded Seismic Micro-Technology (SMT) in 1984 and led the development of the widely adopted Kingdom Suite software suite for seismic interpretation. He went on to found Geophysical Insights in 2008, which launched Paradise™ at SEG 2013.

Why did you launch Geophysical through guided workflows. In 2009 Improvements in quantitative analysis Insights after the sale of SMT? Wasn’t we organized a team of interpretation will help interpretation add forecasting to the geologist’s toolkit it time for a break? software specialists, geoscientists, and prediction. The work at SMT was thoroughly marketing professionals to develop enjoyable, particularly generating new an advanced geoscience platform that Do you think these advances will come ideas and developing new technology, would take full advantage of modern from industry or academia? so after the sale of SMT it seemed computing architecture, including large Bright people and ideas are everywhere, Understand quite natural to continue. I jumped scale parallel processing. Today, Paradise and we must be open to solutions into geophysical research with delight. distils a variety of information from many from a variety of sources. Technology the Structural Geophysical Insights was launched attributes simultaneously at full seismic breakthroughs are often an application to develop the next generation of resolution, i.e. operating on every piece of of existing concepts from multiple Framework in your interpretation technologies, a result of data in a volume. This is one of the many disciplines applied in a whole new way. some of that research. We recognized differences in the application of machine I believe that fluid, inter-disciplinary that there was an opportunity to make learning and pattern recognition methods teams, enabled by advanced technology, Petroleum System a contribution to the industry. Response available in Paradise. offer an excellent organizational model has been good, with a substantial for addressing the complex challenges 2D & 3D Modelling number of people expressing a great What is your perspective on the of monetizing hydrocarbons in interest in these new ways to conduct interpretation needs of unconventional challenging geologic settings. What are the relationships between source, seismic interpretation. compared to conventional resources? reservoir and seal units through time? Here’s why: today we have more data, Both types of plays have their Where will these advances originate? a greater variety of play concepts, and respective challenges, of course. Our While the U.S. has emerged as a leader Where and why was accommodation space generated? often less time for interpreters to analyze work at Geophysical Insights is evenly in O&G production due in large part prospects. In particular, the number of divided between conventional and to the development of unconventional When and how did deformation occur seismic attributes available is now in unconventional resources; however, there resources and the application of new and to what extent? the hundreds. Witnessing this growing is growth in the use of seismic among technologies, regions outside of the U.S. body of information, several years ago E&P companies in unconventional plays. are beginning to develop these too. It is M. Turhan Tanner (see GEO ExPro Systematic drilling programs are now reasonable to expect that universities and Vol. 3, No. 4), Sven Treitel and I began being augmented more often by seismic companies in these regions will generate collaborating on the premise that greater interpretation, which is reducing field many new technologies, which will be Fracture & Stress Module insight may be extracted from the seismic development costs by optimizing drilling essential to supply the growing demand response by analyzing multiple attributes and development. There is also growing for hydrocarbons worldwide. I applaud How connected are fractures and how do simultaneously. We recognized that recognition of what are termed ‘complex the next generation of geoscientists and they in uence porosity and permeability? advanced pattern recognition methods conventionals’, like carbonates – a hope that they enjoy the work of our were being used in many applications geologic setting that requires advanced industry as much as we do. What is the pressure change required to outside geoscience that could be adopted analysis for the characterization of induce fracture failure? to address what we saw as an opportunity carbonate reservoir rocks. to advance the geoscience for exploration Which fractures are most likely to fail and production. Our thoughts on the Where do you see the next big under a given stress regime? opportunity were put forward at a 2009 advances in geophysics? SEG workshop entitled ‘What’s New in While traditional interpretation tools have Seismic Interpretation’ in a presentation made extensive use of improvements in called ‘Self Organizing Maps of Multiple interpretation imagery, their analysis has Use Move software to Attribute 3D Seismic Reflections’. been largely qualitative – an interpretation of visual imagery on a screen. Certainly, answer your questions and Tell us about the advanced geoscience qualitative interpretation is important reduce risk and uncertainty. analysis software platform, Paradise. and will always have a place in the Paradise is an off-the-shelf analysis interpretation process. We see the next platform that enables interpreters generation of technologies producing to use advanced pattern recognition quantitative results that will guide methods like Self-Organizing Maps and inform an interpretation, thereby and Principal Component Analysis complementing qualitative analysis. For more information visit www.mve.com/software E: [email protected] or T: +44 (0) 141 332 2681 104 GEOExPro September 2014 the geologist’s toolkit

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Use Move software to answer your questions and reduce risk and uncertainty.

For more information visit www.mve.com/software E: [email protected] or T: +44 (0) 141 332 2681 Hot Spot

the prospect and led a farmout to Apache Boost for Companies New Oil and JX Nippon in 2012, are now going The Phoenix South-1 is a much-needed back to the BP drill results to see how well boost for Apache, which has a long they match with the new discovery. history of success in Australian waters but Play Excites recently flagged a sell-off of its Australian New Oil Play assets due to investor pressure back in the Australia The discovery has caused a lot of US. It also sent Carnarvon Petroleum’s excitement in the Australian upstream share price soaring. Phoenix South-1 in the industry, and not just because oil discov Another beneficiary of the discovery Offshore Canning Basin eries have been so few and far between. is Woodside, which followed Carnarvon Phoenix South-1 has uncovered an Petroleum into the Offshore Canning breaks Australia’s oil drought entirely new oil play in the Lower Triassic and has since made a huge plunge DAVID UPTON Keraudren Formation, and is the only well into the frontier with Shell. The joint in the history of the Offshore Canning to venturers conducted Australia’s An Apache-operated wildcat in the successfully test this sequence. largest offshore 3D seismic survey in frontier Offshore Canning Basin has More importantly, Phoenix South-1 the Offshore Canning in 2011, and broken a 15-year drought in major oil has busted a long-standing myth that the committed to an eight-well wildcat discoveries in Australian waters. Outer Canning Basin is not prospective. program. The first well of a two-year, The Offshore Canning Basin sits Previous explorers had tried to import $US442 million contract, Hannover between the Carnarvon and Browse the exploration model that worked so South-1, is due to spud in the current Basins off Australia’s north-west coast. well next door, targeting reservoirs in quarter. Remarkably, only a dozen or so wells younger Triassic and Jurassic rocks. In Meanwhile, Apache and its partners have been drilled in the basin since the Carnarvon Basin and Browse Basin, are still unwrapping the good news from exploration began in the 1960s, despite it this approach had yielded giant gas fields Phoenix South-1. Side-well cores will be being nestled between two of Australia’s that support most of Australia’s west assessed as soon as possible to provide most prolific petroleum basins. coast LNG projects. definitive data on the quality of the Apache announced on 18 August When previous explorers failed reservoirs. Apache has already taken up that its shallow water Phoenix South-1 they concluded the Outer Canning had an option from Carnarvon Petroleum exploration well in permit WA-435-P, simply missed out on the rich petroleum and Finder Petroleum for a 40% stake 180 km north of Port Hedland, had endowment that blankets the rest of and operatorship in neighboring permits intersected at least four discrete oil Australia’s north-west continental shelf. It WA-436-P and WA-438-P. It has also columns ranging in thickness between was an easy conclusion to make because committed to drill a second well next year 26m and 46m. It made a preliminary the Outer Canning is something of an at a larger prospect known as Roc, closer estimate of 300 MMbo in place. oddity. Its neighbors on either side share to the coastline in permit WA-437-P. The It is the first major offshore oil find broadly the same structural setting and Keraudren Formation is shallower and in Australia since 1999, when Woodside depositional history from the separation less compacted at Roc, and is also believed Petroleum established a new deepwater oil of India from Australia. However, the to be sandier as it moves inboard. It will province off the North West Cape, about Outer Canning had distinct differences, be one of the most anticipated wells in 600 km further south in the Carnarvon despite being wedged in the middle. recent Australian history. Basin. Apache and its partners Carnarvon Petroleum (20%), Finder Exploration (20%) and JX Nippon (20%) had actually targeted gas at Phoenix South-1, based on the results of two nearby wells drilled by BP in the early 1980s. However, the Carnarvon Petroleum discovery of oil has heightened suspicions that BP misdiagnosed what it had found with its first well, Phoenix-1, in 1980, when it ran into problems and was unable to recover samples or conduct a drillstem test. It found hydrocarbons over a large column, but without the ability to conduct a proper test concluded it merely had gas shows. A second well, Phoenix-2, was drilled in 1982, but the reservoir quality was poor and the BP campaign ended. The Apache team and geologists at Carnarvon Petroleum, which identified

106 GEOExPro September 2014 Dampier Sub-Basin Australia North West Shelf Multi-Client 3D Data

Polarcus is pleased to announce the planned acquisition of 9,400 sq. km of new multi-client 3D seismic data over the Dampier Sub-Basin on Australia’s North West Shelf. The majority of the large structures within the Basin have been drilled, and the exploration effort is now moving towards the more subtle traps with a stratigraphic component that require very high quality 3D data to resolve. The Rosemary 3D survey will be acquired using Polarcus’ RIGHTBAND™ seismic acquisition technology and processed through to Pre-Stack Depth Migration by DownUnder GeoSolutions in Perth through a flow that includes DUG Broad to remove the source and receiver acquisition ghosts. These new high bandwidth, high resolution broadband 3D data will significantly enhance the imaging of complex reservoir geometries and the resolution of thin reservoir units. This will allow de-risking of existing prospects, unlocking of previously unrecognized stratigraphic traps and aid in the identification of by-passed hydrocarbons within Australia’s prolific oil & gas producing fairway.

Stephen Doyle [email protected] +971 4 4360 961

www.polarcus.com/mc Global Resource Management

Oil is Still Conversion Factors Crude oil 1 m3 = 6.29 barrels in the Lead 1 barrel = 0.159 m3 Oil is still our largest energy provider. And while fossil 1 tonne = 7.49 barrels fuels predominate, renewables have a long way to go before they can make a considerable impact. Natural gas 1 m3 = 35.3 ft3 Total energy consumption increased a little in 2013 compared to 2012, and fossil 1 ft3 = 0.028 m3 fuels (oil, gas and coal) now have a market share of 87%. Oil is still the favorite source of energy – 33% of energy consumption came from the black liquid. Contrary to the belief of many environmentalists, world oil production was Energy higher than ever in 2013. With an average output of 86.8 MMbopd, last year saw an 1000 m3 gas = 1 m3 o.e increase of 0.6% compared to 2012. Ten years ago the average daily production was 1 tonne NGL = 1.9 m3 o.e. only 77.6 MMbopd. On top of that, “the year 2013 saw an acceleration in the growth of global energy Numbers consumption, despite a stagnant global economy”, as stated by Bob Dudley, BP Million = 1 x 106 Group Chief Executive. 9 Nevertheless, there was a 16% increase in consumption of renewables (not Billion = 1 x 10 including hydroelectricity) compared to the year before, and that consumption has Trillion = 1 x 1012 doubled in less than five years. The number is, however, still small, as renewables only account for 1.5% of world energy consumption. “The importance of policy is Supergiant field also apparent in the strength of renewable forms of energy, which continued to Recoverable reserves > 5 billion grow robustly, albeit from a low base,” as explained by Dudley. barrels (800 million Sm3) of oil Three countries dominate world oil production. Together, Saudi Arabia (11.5 MMbopd), Russia (10.5 MMbopd) and the United States (10.0 MMbopd) produce equivalents more than a third of the total. China ranks as number 4 on the list with 4.2 MMbopd. Norway and the United Kingdom produced 1.837 and 0.866 MMbopd respectively, Giant field ranking them at numbers 15 and 25 in the world. Amongst the European countries, Recoverable reserves > 500 Norway, UK and Denmark (0.178 MMbopd) are leading producers. million barrels (80 million Sm3) Halfdan Carstens of oil equivalents World energy consumption by energy type. Fossil fuels predominate, by far, and in spite of a 16% increase in 2013, renewables are – with only 1.5% (not including hydroelectricity) – still a minor Major field source of energy. Recoverable reserves > 100 4500 million barrels (16 million Sm3) of oil equivalents 4000

3500

3000 BP Review of World Energy 2013

2500

2000 Historic oil price 1500 $2011/barrel 100 1000

500 50

0 Oil Coal Gas Hydro Nuclear Renewables 0 1861 1900 1950 2000

108 GEOExPro September 2014 Abadi 6

2.0

4.0

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ABADI–ARAFURA–ARU (AAA) MEGAPROJECT 26,500 line km including GeoStreamer® data

PGS is pleased to announce the completion of the cross border Indonesia-Australia MegaProject. The project includes: ■ Final stacked and matched seismic data ■ Tectonic reconstruction of the area ■ Paleo-depositional maps integrated with seismic ■ Regional source rock, reservoir, and seal maps ■ Geochemical modeling ■ Well success/failure analysis (60+ wells) ■ Play-types and construct play-fairway maps ■ Prospectivity assessment

To locate and evaluate prospects, head straight for the PGS MultiClient Data Library at www.pgs.com/multiclient

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