An Emerging Field for Petroleum Geologists

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An Emerging Field for Petroleum Geologists Carbon Capture, Utilization, and Storage Conference 23–24 March 2021 • Sugar Land, TX Plan now to attend AAPG's Carbon for Petro Capture, Utilization, and Storage Field leum (CCUS) Conference 23–24 March g G 2021. Themed “An Emerging Field gin eo for Petroleum Geologists,” the er lo conference will highlight current m CO2 g CCUS work and tackle related E is challenges including subsurface n t storage in saline reservoirs, storage s associated with CO enhanced oil A 2 recovery, reservoir monitoring and risk assessment, case studies, $ 50/TON industry applications, economics, incentives, policies and regulations, ECONOMICS and more. New Sponsor Opportunities in a Maturing Carbon Market INTERNATIONAL The technical knowledge and data CO2 sets of the most successful companies in the petroleum geosciences arena provide major inputs that will help lead the way for a successfully shift towards a carbon-neutral and sustainable energy future. AAPG’s CCUS Conference offers a path for your company’s brand to be at the forefront of a sustainable development initiative within our petroleum industry. Contact our sales representative to secure today: Tracy Thompson [email protected] +1 918-560-9414 Daniel Yergin, Cindy Yeilding, Vice Chairman, Vice President, IHS Markit BP America Learn more at: ccus.aapg.org Keynote Speakers FEBRUARY 2021 EXPLORER.AAPG.org By RICK FRITZ 3 Predicting the Future and President’s Column How it Impacts AAPG went to a talk years ago by a speaker in 2021 although they may be fundamentally who was introduced as a “futurist” for his different. AAPG relies on sponsorship support I ability to predict. I’ve always wanted the from companies and we look forward to their title of “futurist,” but I’ve not earned it. I’ve been The best way to predict success in this new environment. reading a lot of predictions for 2021 from various magazines, papers and blogs. Now I’m Sustainability as close to a futurist as I will ever get, so here the future is to create it. are a few predictions from the experts (I agree As I mentioned in my January column, with with) and how they may impact AAPG. all of the corporate 2050 zero-emission goals, it very clear that companies are changing COVID-19 Virus to grow as much as 5+ percent. 2021 will be dominated by demand recovery their culture to emphasize the sustainable AAPG has made major spending cuts to and by OPEC decisions on supply plus the development of petroleum resources and The pandemic has had a devastating respond to the loss of its economic engine – recovery of U.S. production. Capital will be tight other forms of energy. For companies this effect on the world. Our thoughts and prayers that being face-to-face meetings – and the and companies will continue to keep CAPEX is a critical step for social license, continued are continually with those who are sick and consolidation of the oil and gas industry. We low. The mergers and acquisitions market investment and to attract quality talent. The especially with those who have lost loved are getting closer to balancing the budget, but is not expected to recover significantly. One world needs oil and gas well into the future, ones. Right now there seems to be some we are on a knife’s edge, economically. Several obstacle to expect is a regulatory onslaught but it must be incorporated and enhanced with optimism tied to coronavirus vaccines and of our major non-operated revenue sources, from frac’ing bans to new taxes for carbon sustainable development and alternate energy. herd immunity. I heard on the news that such as NAPE and OTC, were moved to the and methane. The midstream sector will have AAPG will change its culture to fit more closely there are a total 45 different vaccines in summer of 2021, so we are looking forward to difficulty building new pipelines. to industry, but oil and gas will still be our development around the world. Of course, an improving financial situation in the last half What does all of this do to oil and gas primary focus. In addition, AAPG will focus on distribution of the vaccines is a key concern. of this year. productions and prices? alternate energy through our Energy Minerals AAPG leadership and staff are paying In the United States, most likely, oil imports Division and the Sustainable Development particular attention to vaccine distribution plus Oil and Gas will increase and gas exports will increase. As I Committee. state and city COVID-19 rules as we prepare am writing this column, oil prices are over $50 for a face-to-face AAPG Annual Convention The oil and gas industry will continue to per barrel, but how long will that last? Environment and Emissions and Exhibition in Denver, May 23-26, 2021. We be in a state of consolidation and evolution. So how does this impact AAPG? are continuing to evaluate the situation day-by- Focus will be on innovation, best practices, There is a lot of uncertainty, which is not Companies will increase focus on day. Keep tuned. well efficiency and cutting costs. Oil markets in good. Our hope is that companies will recover the impact of climate change to energy needs. Environmental, social and corporate Economics governance factors will reach a tipping point Pivot No. 6: Integrated Basin Analysis and will be critical in obtaining capital. Banks Most likely, the world will have a mixed During the 1990s, AAPG came out with a key special publication: Memoir No. 60, and private equities will continue to expand economic recovery in 2021. World economics “The Petroleum System,” edited by Les Magoon and Wally Dow. At the same time, I was investment into decarbonization. Carbon are tied closely to the success of vaccines, working with Drs. Larry Meckel and J. T, Smith, both ex-Shell, on a huge regional Austin capture, utilization and storage will develop so it will vary from country to country. Chalk Study (which is still available). Integrated sedimentary basin analysis finally very slowly until there are more abundant, Governments will pivot from helping workers made a mark on me while working on this project. We were studying a big basin, the continuous sources of CO2 and sites for who have lost their jobs to keeping companies Gulf Coast. We mapped a very broad area of the chalk from Mexico to Florida. storage. CO2 utilization will attract a lot from failing. Inflation will increase as much During the study we realized methods to identify sweet spots in the Austin Chalk. of investment into enhanced oil recovery as 2 percent (or more) from all the money These sweet spots were based on old log analysis and sub-regional fracture zones; projects. AAPG is actively developing and governments are printing for protection they were typically 5,000 to 20,000 acres in size. Several of our clients loved the supporting the science and is holding its first programs. Nevertheless, there is a sense concept and were very successful in drilling horizontal wells in oil to condensate phase major CCUS conference on March 23-25, that economies are recovering. China is sweet spots. The funny thing is, a year later I noticed one large client was drilling poor 2021. There are a lot of jobs in environmental experiencing a stronger than expected wells between the sweet spots. When I asked them “Why?”. they said that they were so geology and the Division of Environmental recovery and this impacts world economics. successful on their first wells drilling sweet spots that they had to drill the intervening If the COVID-19 virus is finally brought under property. Oh well. So much for prediction! control, some economists expect global GDP See President next page u STAFF TABLE OF CONTENTS REGULAR DEPARTMENTS Managing Editor A Seat at the Boardroom Table: Why Geophysical Corner .................................. 14 Geothermal Brian Ervin geologists in leadership are good for Page 12 06 Historical Highlights ................................. 16 [email protected] business. Foundation Update ................................... 20 Art Direction/Production Matt Randolph Women’s Network .................................... 24 Can oil explorers dare to hope in 2021? At [email protected] YP Connect ................................................ 25 08 least a few industry analysts think there are reasons for optimism. Classified Ads ............................................ 25 Advertising Contact Tracy Thompson Director’s Corner ....................................... 26 1-918-560-9414 [email protected] The Heat Beneath Our Feet: How geothermal Divisions Report (EMD) .......................... 26 12 energy can be harnessed as an alternative power source, and an alternative career option Humboldt State University geology CORRESPONDENTS for geologists. students (from left) Wyeth Wunderlich, Olivia Helprin and Jared Walbert map the David Brown geology of the Ramuschaka Watershed. Emily Smith Llinás The community of Zurite lies on the other Heather Saucier Martian Invasion: This month, the planet side of the clouds, approximately 1,000 18 Mars will become slightly more crowded meters below. Photo by Jasper Oshun. with robotic visitors from Earth. ON THE COVER: See story on page 20. EXPLORER.AAPG.org The AAPG EXPLORER (ISSN 0195-2986) is published monthly for Members by the American Association of Petroleum Geologists, 1444 S. Boulder Ave., P.O. Box 979, Tulsa, Okla. 74101-3604, 1-918-584-2555. email address: [email protected]. Periodicals Postage Paid at Tulsa, OK and at additional mailing offices. POSTMASTER: Please send Volume 42 address changes to AAPG EXPLORER, P.O. Box 979, Tulsa, Okla. 74101. Canada Publication Agreement Number 40063731. Return undeliverable Canadian address to: Station A, P.O. Box 54 • Windsor, ON N9A 6J5 • email: [email protected]. Advertising rates: Contact Tracy Thompson, AAPG headquarters. Subscriptions: Contact Brian McBroom, AAPG headquarters. Unsolicited manuscripts, photographs Number 2 and videos must be accompanied by a stamped, self-addressed envelope to ensure return.
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