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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. The American Association of Petroleum Geologists (AAPG) does not endorse or recommend any products or services that may be cited, used or discussed in AAPG publications or in presentations at events associated with AAPG. Copyright 2021 by the American Association of Petroleum Geologists. All rights reserved. Note to Members: $6 of annual dues pays for one year’s subscription Feb 2021 to the EXPLORER. Airmail service for Members: $55. Subscription rates for non-members: $75 for 12 issues; add $72 for airmail service. 4 EXPLORER FEBRUARY 2021 Call for Papers AAPG Bulletin Special Issue: Deep to Ultra-Deep Petroleum Systems
he global oil and gas industry is deeper than 8,000 meters in western China, environments. Papers will showcase some at China University of Petroleum, Qingdao, currently exploring new frontiers, with commercial liquid hydrocarbons latest discoveries in deep strata exploration China. Authors will meet to discuss the Tincluding unconventional resources, occurring below 8,200 meters in the worldwide and provide valuable insights and special issue. deepwater offshore and deep to ultra-deep Tarim Basin. Knowledge of hydrocarbon models for petroleum exploration in deep u Jan. 30, 2022 edited final strata onshore. These represent a strategic behavior and accumulation mechanisms in basins worldwide. manuscripts due. shift in petroleum exploration. This call- micro-nano pores, the influence of organic- u March 2022: AAPG Bulletin published. for-papers is for an AAPG Bulletin’s special inorganic interaction under extremely u On or before March 30, 2021, confirm issue focused on new research into deep high pressure and temperature, and the interest in participation with title and For all inquiries, please contact the Special basin reservoir formation mechanisms, distribution, assessment and prediction of authorship. Editor of the AAPG Bulletin Special Issue: hydrocarbon accumulation and preservation hydrocarbon resources in these deep basins u June 30,2021, preliminary Professor Fang Hao, Fellow of Chinese models. We are recruiting worldwide case are advancing rapidly. manuscripts due. Academy of Sciences and President of UPC studies and new technologies. This special issue of the AAPG Bulletin u July-September, review process. and Prof. Keyu Liu, Academic Chair of the A significant breakthrough has been aims to document all aspects of petroleum u Oct. 31, 2021, reviewers recommend edits. School of Geosciences, UPC, 66 Changjiang made in China and elsewhere exploring systems in deep to ultra-deep frontiers, u Nov. 23-24, 2021 AAPG “Ultra-deep West Road, Huangdao District, Qingdao, deeply buried reservoir plays in the past including both clastic and carbonate petroleum systems” GTW organized by AAPG Shandong Province 266580, China,
decade. There are several giant discoveries (dolomite) plays in onshore and offshore Center and the Deep Oil and Gas Laboratory [email protected]. EXPLORER President upcoming submission deadlines from previous page Interpretation, copublished by SEG and AAPG, aims to advance the practice of subsurface interpretation. Geoscience will play an increasing role in supporting this science.
Hybrid Work Model
Office life is changed forever. Virtual work SCHEDULED TOPICS from home will become a standard both for convenience and cost savings. We already see Visit https://library.seg.org/page/inteio/Interpretation-special-sections for more details about these sections. Zoom and similar programs evolving, and I predict there will be new software innovations MAY 2022 ◗ Russia: Recent Developments in in 2021 to make it even easier to communicate and work online. AAPG staff has worked ◗ Recent Advances in Lacustrine Moderate-Low Maturity Hydrocarbon Exploration and Production virtually since March 2020 and they have Shale Oil Exploration and Development Submission deadline: 20 January 2021 not missed a step in providing services to Submission deadline: 1 July 2021 Special-section editors: Vsevolod Egorov, Olga Almendinger, members. One of the biggest questions facing Special-section editors: Min Wang, Shu Jiang, Tongwei Zhang, Vladimir Verzhbitskiy, Anton Duchkov, J.T. (Han) van Gorsel, the AAPG at the start of last year was whether Zhejun Pan, Tim Carr, Zhuoheng Chen, Guochang Wang, and Igor Kerusov, Dmitry Modin, Boris Platov, Konstantin Osypov, or not to move its office to Houston. That Chunqing Jiang Alexander Savitsky, Olga Shiganova, and Sergey Turuntaev seems a remote need at the moment as AAPG staff conduct work from all over the world. ◗ Distributed Acoustic Sensing (DAS) FEBRUARY 2022 Submission deadline: 1 February 2021 Branding and Re-branding ◗ Computational and analytical insights into stratigraphic Special-section editors: Ran Zhou, Konstantin Osypov, Hyoungsu processes and products Baek, Andrej Bona, Yingping Li, Roman Pevsner, Michel Verliac, Brands must be authentic, and value- Submission deadline: Shuvajit Bhattacharya, Mark Willis, and Ge Zhan driven. This is very important for AAPG as 1 May 2021 we figure out what our members need and ◗ Special-section editors: Fabien Hydrocarbon Migration, Near-Surface Seepage, and want. Hopefully, we will get back to face-to- Laugier, R. Chadwick Holmes, Petroleum System Assessment face meetings like geoscience technology workshops and the annual conferences, but and Lisa Stright Submission deadline: 1 February 2021 we will continue to provide virtual programs. Special-section editors: We need to be highly selective to provide value NOVEMBER 2021 Jamshid “Jim” Gharib, to members and non-members worldwide. ◗ Some companies will take this time to re- Focus on Africa Vsevolod Egorov, Michael Submission deadline: 20 January 2021 brand. AAPG is in the process of trying to Abrams, Harry Dembicki understand what new products we need to Special-section editors: Sunday O. Amoyedo, Abderrahim Lafram, Jr., Roar Heggland, Benjamin Phrampus, and Jeffrey Beeson Sanmi Tunde Emmanuel, Mike Oladapo, and Donatus Angnuureng provide to members, such as sustainable ◗ Seismic amplitude interpretation for conventional and development and emissions science. We also ◗ are working to provide more opportunities Geoscience of Hydraulic Fracturing unconventional resources Submission deadline: 20 January 2021 through diversity, equality and inclusion Submission deadline: 1 February 2021 programs. There is some call to change Special-section editors: Ishank Gupta, Vikram Jayaram, Chandra Special-section editors: Bo Zhang, Zhaoyun Zong, Jing Ba, Sanyi Rai, Timothy Carr, Dengliang Gao, William Harbert, Ge Jin, Adam AAPG’s name to reflect a broader energy Yuan, and Sumit Verma science. You will have a voice in this as we Haecker, Kyle Haustveit, Manika Prasad, Mirna Slim, Vishal Das, survey members this spring. Srinivasa Reddy Karri, and Dongxiao Zhang That’s enough on the future. I’ve run out of room. One thing I promise is that AAPG will SUBMISSION DEADLINES PAST DUE: not abandon its roots in the future. Oil and gas will be needed for decades to come. Just look AUGUST 2021 ◗ The uplift of Himalaya-Tibet Plateau and its at the amount of hydrocarbon-based energy it ◗ Benefits and challenges of depth versus time impacts on basin evolution and hydrocarbon is taking to develop, test, re-test and distribute migration for impedance inversion accumulation in Asia the vaccines. Transportation alone requires Submission deadline: 1 December 2020 Submission deadline: 1 December 2020 a huge fleet of planes, trains and trucks to Special-section editors: Arash JafarGandomi, Alexandro Special-section editors: Shu Jiang, Dengfa He, Xiumian Hu, distribute, not to mention the tons of dry ice Vera-Arroyo, Mita Sengupta, and Alvaro F. Martini and Xiangyang Xie required. My primary hope for 2021 is that things get better and safer with more job opportunities. A good friend reminded me that Abraham Interpretation is a peer-reviewed journal copub lished by SEG and AAPG to advance the practice of subsurface interpretation. Papers will be Lincoln said, “The best way to predict the published online as they are accepted, edited, and composed, with issues printed quarterly in February, May, August, and November. Each future is to create it!” issue contains at least one special section covering a topic of interest to interpreters. General submissions also are welcome in addition to Here we go! submissions targeted to the topics above. Rick Fritz, Futurist *E-mail [email protected] to inquire about submitting manuscripts past the submission deadline. Some sections may have in- creased flexibility regarding submission and review dates. To submit a paper, visit https://mc.manuscriptcentral.com/interpretation and select the appropriate topic from the manuscript type options. For submissions not associated with a special section, select “Technical Paper.”
6 By EMILY SMITH LLINAS, EXPLORER Correspondent THE BUSINESS SIDE OF PETROLEUM GEOLOGY A Seat at the Boardroom Table Why geologists in leadership are good for business
Sylvia Anjos with Robbie and a colleague colleagues on drillsite
xploration is the heart of the oil and position with strong technical input, so I the reservoir level and even at the industry “From the beginning of my career, I was gas industry, and geologists are the decided to try it,” she said. level,” she said. keen to collaborate cross-functionally and Eheart of exploration. During her management career at Schwarze found geoscience during her to have my team all rowing in the same Paradoxically, though geologists Petrobras, Anjos and her colleagues freshman year in college when two sorority direction. I learned on the job that I have are among those most responsible for experienced the opening of the E&P sisters convinced her to take Geology 101. strengths in building alignment, focusing finding hydrocarbons, data collected by sector and worked on multiple fronts to be Before long, she was hooked and chose on what matters and project management, the Brazilian Association of Petroleum prepared for competition. geology as her major. and I leaned into those strengths to make Geologists (ABGP) shows that geologists She currently serves as business adviser “As an introverted science kid with a love the jump from a technical contributor are less likely than their engineering and for Petrobras Downstream and is helping for the outdoors, geology filled my soul,” career path to a leadership career path,” economist counterparts to be considered the company prepare for Brazil’s transition she said. “Studying the Earth requires all she said. for leadership positions in the business and into a new gas regulatory regime and open the sciences, and the curriculum included As vice president of global exploration technology areas of oil and gas companies. market. lots of field trips. The professors, graduate at Chevron she is responsible for the Sylvia Anjos, AAPG Member, past Anjos said that geologists bring students and undergraduates all mingled company’s worldwide exploration president of ABGP and business adviser both the technical experience and the easily as colleagues and friends.” program and chairs the company’s Global at Petrobras, studied the data and said skillset needed to be effective in strategic Schwarze’s love for community and Exploration Leadership Team. The position that companies would be wise to ensure positions. interdisciplinary collaboration deepened involves reviewing technical projects, a task that geologists are included on executive “If a profession like geology can deal during her early years at Chevron. she enjoys. teams. with huge amounts of intangible variables “About two years into my career, my “I do get many opportunities to see “Once large discoveries are made, there in nature and geological processes, group became the first cross-functional technical work and offer my thoughts,” she is a tendency to believe that the reserves imagine how easy it is for geologists to co-located team in our office. We were a said. “It’s a fun part of my job and I think are enough and to focus on production. deal with the more realistic nature of pilot to see if working side by side with the above all else it helps me connect with Geologists are seen as not really critical. business, as well as the intangible nature it other professionals needed to run an oil people.” That is a mistake that is avoided when can have sometimes,” she said. field would be better than working side-by- geologists hold leadership positions at “During climate change discussions, side with people in our function working Geologists as Entrepreneurs companies,” she said. geologists are the professionals that can different oil fields,” she said. “Geologists value the odds of making provide the real approach to the problem. The pilot was a success, and in addition Robbie Gries, former AAPG president new discoveries, so exploration remains a Because we are trained to see in 4-D, we to teaching her about cross-functional and president of Priority Oil and Gas, LLC, continuous, important process. I consider value and position facts properly across teams, the experience gave Schwarze the is proof that geologists not only make good that this was one the reasons for Petrobras’ time, geological time,” Anjos added. opportunity to develop a close working company executives but also can excel as success in deep and ultradeep waters,” she relationship with the group’s reservoir business owners and entrepreneurs. added. Opportunities for Team Players engineer. The 45-year petroleum industry veteran As a passionate geologist and a more “He took me under his wing, so to speak, found geology her sophomore year in than 30-year industry veteran, Anjos knows Liz Schwarze, AAPG Member and vice and taught me all about how reservoirs college when she was looking for a science a lot about geology and about business. president of Chevron’s Global Exploration perform, how to forecast production and class with a highly recommended teacher. Group, said geologists’ manner of thinking how to run economics. That helped me “Someone suggested geology, and I Connecting the Puzzle Pieces helps them adapt well to the business really understand the decision-making said, ‘What is that?’ I had come from a world. process,” she said. tiny high school and had never heard the Anjos’s interest in geology started at “As geoscientists, we think in three Schwarze enrolled in an MBA program word. I fell in love, by the end of that year I age six when her father showed her a world dimensions, and I think that is quite helpful and took classes at night while building her had taken three courses and changed my map. in the multifaceted challenges we face at career at Chevron. major,” she said. “He told me that Brazil and Africa used Gries joined the industry and developed to be connected, like a puzzle!” she said. an interest in business while expanding the Her interest piqued again in middle geographic and technical knowledge she school geography class when the teacher needed to evaluate prospects and projects. described the evolution and rise of the “I never intended to have my own Andes and isolation of the Amazon Basin business, but as I left larger companies and from the ocean. She was so fascinated that went to smaller companies, I learned other she decided to study geology. skills ... geophysics, engineering, lease After graduation, Anjos joined acquisition, economics. Soon I was able Petrobras, Brazil’s national oil company, to become ‘independent,’ and I started my and she worked with a variety of technical own company when I had an opportunity to projects and teams before moving into buy some producing properties,” she said. management. Over time, the pieces of her Gries has worked independently since career started to fit together. 1980. She currently owns a natural gas “It took me a long time, 20 years, to production, petroleum exploration and agree to go into management. The third offer I received was for a managerial Continued on next page u Susan Morrice and BNE employees FEBRUARY 2021 EXPLORER.AAPG.org 7 t Continued from previous page development company based in Denver. Gries said geologists have unique strengths that help them to successfully run businesses. “I believe we (geologists) are better at addressing the risk in a project, as we don’t just use numbers; we have a studied approach to reservoirs and better intrinsic understanding of the scientific risks ... and the upside potential,” she said.
Thinking Outside the Barrel
Susan Morrice, AAPG Member and founder and chairman of Belize Natural Energy, found both geology and entrepreneurism early in life. She grew up loving nature and outdoors while picnicking with her family on the rocks near their home in Ireland. She studied geology in college and shortly after graduation got a job conducting research in the United States. “I found entrepreneurism was the backbone of the country, so I decided I’d better become one … fast! I did just that within three years of graduation,” she said. Along with love for business, Morrice developed a passion for Belize, and she decided to start an energy company that made a sustainable difference in the Liz Schwarze country and its people. She found a Belizian partner, and they struck oil on their first try. Morrice credits her success with studying the mind and “Geologists bring oil and gas companies platforms to promote diversity, inclusion considering management should have a mindsets and adopting a firm belief in a more effective sense of risk analysis. learning and dialog. clear understanding of what it means to AAPG founder Wallace Pratt’s statement, They know when the value of the prize “Our reputation and effectiveness lead teams. “Oil is found in the mind.” compensates the risk of investment,” she said. depend on our diversity and inclusion “Not everyone is a good manager, and The company Morrice founded, Belize Anjos noted how major discoveries efforts,” she said. you have to really like to set alignment and Natural Energy, has been the No. 1 revenue in Brazil happened because Petrobras She noted that, in addition to seeking direct others, you have to achieve personal generator in Belize for more than 12 years leadership made the difficult decision to go diversity, businesses should have a vision satisfaction through the work of others and and has won multiple international awards further after drilling dry wells first. for growth and continuity in their leadership you have to relish giving the recognition for its holistic, sustainable business model. “The giant turbidites fields of Campos teams. and praise to the team,” she said. Susan credits geologists’ creativity Basin and the supergiant fields of Pre-salt “Companies need to take the long view She invited geoscientists entering the and imagination with helping them to be in Santos Basin are huge discoveries that in development, communicate clearly profession to conduct a series of self- successful in the business world. happened when two excellent geologists what it takes to be a senior leader and assessments, both at the start and during “Geoscientists usually have nurtured were directors at Petrobras and made the link sponsorship programs to succession- the course of their careers. their imagination. We never have all the right decision to go against the odds to planning processes,” she said. “Identify your goals – life and data points, so we have to think outside the make the discoveries,” she said. professional. Identify the basic trade-offs box – or barrel! – finding other value chains Advice to the Next Generations you are willing to make. Identify your to increase the number of profit lines and Strategies for Seating the Table strengths and opportunities; leverage not just rely on the price of the crude roller For Morrice, a key question for young the strengths to new roles and close the coaster,” she said. Schwarze said that diversity and people considering management is opportunities through training, mentoring inclusion – not only in professional knowing whether their values align with and practice,” she said. What Geologists Bring to the Table discipline, but also in gender, background their company’s. Gries noted that ongoing self- and experience – is a fundamental part of “Make sure the company is on the ‘same assessment also is important for Schwarze agreed that the ability to face making companies’ teams successful. page’ and has the same values that you geoscientists considering careers as uncertainty is an advantage geoscientists “Each and every one of us has a skill do ... Reflect on that journey within before business owners. bring to executive teams. we brought to this industry and a myriad anything,” she said. “Ask yourself, can you mentally handle “We all live with uncertainty, and I of experiences that form the core of how Anjos believes strongly that uncertainty? Can you prepare for the ups think geoscientists are generally more we react and make decisions. I call this our geoscientists should build a strong and downs of business in the commodity comfortable with it. We see that our consequence history,” she said. technical foundation before moving into world? That being said, if someone had industry faces ups and downs, and it is “Every one of us is unique because management. Doing so will help them asked me when I was 25 if I could handle impossible to predict the future, whether we’ve had different childhoods, academic develop the skills they need to explore that I would likely have said, ‘no.’ But in my that is at a macroeconomic scale or at a and work histories. So, if you exclude multiple hypotheses and make decisions, 40s I started learning how resilient I was local field scale,” she said. geoscientists or any specific group, you she said. and what a powerful tool networking was ... “Things happen to disrupt our miss out on bringing that person’s unique “In my experience, people who come this gave me confidence and tolerance for predictions of the future. In geoscience, we skill and consequence history to bear on into management too soon can focus more risk,” she said. are forever striving to understand the rocks the challenges at hand. So, when seating a on administrative details or can be driven Schwarze encouraged young employees a little bit better. Taking that over to the table, casting the net wide matters.” to make decisions before understanding all to communicate actively with their financial side, we are more likely to have Schwarze noted that diversity and the options,” she said. “This is not good for companies when seeking to advance in humility about our predictions, and I think inclusion is a high priority for Chevron, the long-term health of the company.” their careers. that can give us an edge when it comes to which has a series of programs and Schwarze noted that geoscientists “Advocate for yourself,” she said. “Make adjusting to the downside or the upside.” a clear case for your own abilities and ask Anjos cited three advantages that a supervisor what it will take to get to the geoscientists bring to companies. Liz Schwarze speaking during an Offshore next level.” “Geologists have a knowledge of Technology panel in May 2019 Gries encouraged self-improvement the petroleum systems, the audacity to even when corporate support is not an question previous unsuccessful concepts option. and most importantly, a managerial sense “Invest in yourself. Find areas where you of cost and reward,” she said. can improve and pay for it yourself, take “When geologists aren’t at the table, the time to do it even if your company won’t companies lose their unique ability to support it,” she said. “I took many classes understand the uncertainties of nature, the outside of work to improve areas where I exact value of geological risks and most was weak.” of all, a profession that is trained to argue Morrice encouraged young people to and to raise other hypotheses for the same think big and dream bigger. subject!” she added. “Go way outside your comfort zone and Anjos has seen firsthand the financial find out what you are made of,” she said. benefits that come from having geologists “Be all you can be and live the life of your
on management teams. dreams!” EXPLORER 8 By DAVID BROWN, EXPLORER Correspondent THE BUSINESS SIDE OF PETROLEUM GEOLOGY Can Oil Explorers Dare to Hope in 2021?
s oil prices continued to rise in early ducers and OPEC+ continued to dominate Dickson said that in the fourth quarter Merger and Acquisition Trends 2021, explorers had to grapple with the industry’s business outlook in early of last year, the share of gross gas output A an unfamiliar and even somewhat 2021, with Saudi Arabia still willing to curb flared in the Permian Basin plummeted to a In terms of future merger and acquisition bizarre possibility. production in hopes of stifling shale devel- modern shale-era record low of 1.6 percent activity, there’s a disproportionate ratio of Is the business outlook for the oil and opment. compared to about 4 percent in 2018, ac- sellers to buyers right now in the market gas industry going to be better than almost “The risk is certainly asymmetric to the cording to estimates by Rystad Energy. but “most companies in a good position to anyone expected? downside here. But putting on my optimist’s “You’ve got a solid decade or more of do deals have already done them,” Beeker Not surprisingly, that idea met with an hat, shale production is obviously a big part shale inventory in the United States,” Beeker noted. abundance of caution, and even skepti- of this,” Beeker said. said, but he sees shale development growth However, with improving conditions, “I do cism, from an industry that experienced the A stalemate seemed the most likely reversing at some point in the future when think this results in more deals happening, severe downturn of 2014-16 followed by the outcome, with OPEC+ extending production “you’re spending so much money just in now that we’re seeing positive results,” he worldwide COVID pandemic of 2020. curtailments, U.S. shale producers hoping reversing last year’s decline that the U.S. added. Still, “I think there’s plenty to be excited to avoid a price war and growth possibilities can’t grow production.” “In recent months, the companies helped about, especially given the recent upsurge limited. Years of underinvestment have evolved the most have been those that have suf- in oil prices,” said Alex Beeker, principal “We actually predict (U.S.) production into a potentially serious issue for the in- fered most. They might have been seen as analyst, corporate analysis in New York City declines in 2021, declining by about 400,000 dustry. In its 2021 industry outlook, Deloitte being on the brink, but they have now been for international research and consultancy barrels a day,” Beeker said. noted that oil and gas enterprises overall given a lifeline,” he said. group Wood Mackenzie. Despite recent increases in the active would need to invest more than $525 billion Companies well-positioned for growth rig count, “we think you would have to annually just to replace yearly consumption include Pioneer Natural Resources, Cono- Supply Reduced, Demand Steady add more rigs even for U.S. production to and offset natural field declines. coPhillips, Devon and Diamondback Energy, remain flat,” he observed. “Although underinvestment of many all of whom made significant acquisitions in Spot prices for West Texas Intermediate Dickson said “the greatest opportunities years poses risks to supply in the medium 2020, Beeker said. crude began to climb out of pandemic-in- for U.S. shale companies lie in minimizing term, any near-term recovery in oil prices In January, Pioneer announced it had duced lows in May 2020 but seemed stuck natural gas venting and flaring, electrifica- should be used to prioritize balance sheet completed its previously announced acqui- in a $40-45 per barrel-range. Then, late in tion of fleet and oilfield operations, investing strength over growth in the income state- sition of Permian Basin-focused Parsley the year, prices rallied above $50. in water-management projects and signing ment, accelerate decarbonization and digi- Energy in a for-stock transaction valued In the United States, Henry Hub natural green-power purchase agreements.” talization efforts, and capitalize on the next at $4.5 billion. Pioneer has been able to gas prices spent the first half of 2020 below “Fortunately, the U.S. shale industry is liv- M and A wave” to reach divestment targets refinance some of Parsley’s debt at more $2 per million Btu, then rallied sharply in ing up to this new challenge,” he observed. and streamline portfolios, he said. favorable terms. the second half of the year. However, those “Basically, that’s going to save Pio- higher oil and gas prices did little except neer about $100 million a year, just from put operators back on their feet, Beeker Devon Energy Center in Oklahoma City. refinancing that Parsley debt. That number observed. Devon Energy is among those companies is actually coming in better than expected,” “Capital is probably not going to be as positioned for growth in 2021. Beeker said. available to these companies as it has been in the past, so they are going to be forced to Impacts from Energy Transition live within cash flow,” Beeker said. “At $50 a barrel WTI, companies are able Another unknown in the industry’s to reinvest about 80 percent of their operat- longer-term business outlook is the future ing cash flow, pay down some debt, maybe effect of the energy transition and govern- pay a few dividends,” he added. ment attempts to address climate change. But at $50 a barrel “there’s essentially no “The future of energy relies on and offers room for growth,” Beeker noted. a range of decarbonization options, from “At $60 a barrel that jumps quite a bit. It adhering to foundational health, safety and probably makes sense to add rigs to grow environmental requirements, to reducing modestly, and 5 to 10 percent is a number greenhouse-gas emissions per unit of that gets thrown around a lot,” he said. production, to developing a new portfolio of A decision by OPEC+ to hold production low-carbon fuel mix and energy sources,” steady and a late-2020 commitment by Dickson said. Saudi Arabia to reduce oil production helped He predicted companies that “deploy boost world oil prices, said Duane Dickson, and harness the benefits of lean capital and vice chairman and U.S. oil, gas and chem- cost structures, dynamic portfolio modeling icals leader for professional services and and risk-management processes, the future consulting firm Deloitte LLC in New York of work and greener operations will be best City. placed to navigate the evolving oil market The Saudi pledge to reduce supplies by situation.” 1 million barrels a day “has added to the ”On the other hand, companies with stubbornness of bulls in the capital and strategies linked to market cycles, that track commodities market,” Dickson noted. their progress against the usual perfor- “However, the fundamental side of the mance levers – reserves, internal rates of equation, demand, is not budging much. return, operating expenses, etc. – and still For example, oil demand remained flat at follow the outdated 2014-15 downturn around 92 million barrels a day in the fourth handbook, will likely remain behind in all oil- quarter of 2020 and it is likely to remain price scenarios,” he said. under pressure in the first half of 2021,” he said. Proceed Carefully Continuing constraints on oil consump- tion include new lockdowns in large parts of Despite some optimistic signs, caution is Europe, Dickson said. Road traffic in most still the rule in the oil and gas industry today. parts of Europe dropped by 15-25 percent in Operators have seen too many setbacks early January, he noted. and negative trends in the past half-dozen Despite prospects for a slow recovery in years. energy demand rather than a resurgence, “One of our biggest takeaways, our optimism emerged that the worst of the oil biggest lessons from the past year, is that industry’s layoff picture is in the past. companies are going to be much more “I do think we’re mostly out of the woods cautious than ever before,” Beeker said. in that part of the equation,” Beeker said. He compared the current situation to the But he predicted some additional layoffs emerging industry optimism four years ago, could occur as companies try to minimize which turned out to be more of a head-fake costs, increase efficiency and even build than a solid turnaround. financial strength to take advantage of “We encountered this in 2017. It was sort acquisition opportunities. Could a round of of unfortunate timing, because the Permian mergers and acquisitions-related layoffs Basin was just taking off,” Beeker noted. happen in 2021? “Companies have learned from the past, “Unfortunately, possibly,” Beeker said. and they’re going to be more cautious going
The tug-of-war between U.S. shale pro- forward.” EXPLORER
10 By DAVE LARUE THE BUSINESS SIDE OF PETROLEUM GEOLOGY The One Where Gilligan and Frankenstein Chase Goldilocks Building 3-D reservoir characterizations for optimal business value
his is a summary of a paper to be significance, then management might be published in the AAPG Bulletin, prompted to consider drilling an additional Tentitled “The battle of Frankenstein well or wells to address this uncertainty. and Gilligan and the Law of Increasing The Gilligan workflow naturally leads to Reservoir Complexification: what matters in management of uncertainty. Frankenstein 3-D reservoir characterization modeling?” models do not characterize or address Here is the problem: your company uncertainty, at least not directly. is trying to assess the volume and producibility of oil in a newly discovered Reservoirs Are Understood Backwards deepwater reservoir. Only a handful of wells exist in the new field, perhaps as To summarize, there are two end- few as three or five in a field miles across, member ways to characterize a reservoir and although the 3-D seismic is helpful, it in 3-D. The Frankenstein approach builds cannot be used to accurately define the a model based on what is known about geometry and lithology of the reservoir the reservoir. The Frankenstein approach at the production scale. Wells cost addresses uncertainty using powerful hundreds of millions of dollars each and a interpretation, interpolation and simulation platform much more. Everything must be techniques to achieve what is believed done optimally and correctly, or massive to be, or hoped to be, the best and most business losses could occur. Is there correct answer. The Gilligan approach enough oil in the reservoir for production builds a model, or suite of models, to be profitable? Can production rates be based on what is not known about the maintained, and for how long? reservoir. The Gilligan approach creates a If you were the project manager, what spectrum of possible interpretations that would you do in such a situation? The can be further tested or used as possible growth and perhaps even the survival of outcomes. Figure 1: This is an adaptation of a figure by Arps that shows reduction in uncertainty as a field is developed. your company is at stake. You are dealing The example discussed here has Uncertainty is lessened by drilling of new wells, re-interpreting seismic data and from production information. with massive investments, and very little, Uncertainty never goes to zero, as there are inherent uncertainties that are never completely eliminated. Here, it is noted focused on the issue of deepwater fields, but extremely costly data. that reservoir complexity increases with time. With added information as the field is developed and produced, new with very sparse wells, limited seismic data There are two general solutions to this reservoir trends, faults, and geometries are identified. In general, the Gilligan approach has greatest value in cases of quality and enormous costs. problem. greatest uncertainty, whereas the Frankenstein approach, which doesn’t address uncertainty, is more useful later in field Can this concept of Frankenstein and life. However, because reservoir uncertainty is never completely minimized, the Gilligan approach can be useful in all Gilligan be applied to other new discoveries, Frankenstein’s Model stages of field development, even in ultra-mature fields. other business situations, or even mature fields? First, and most obviously, you gather Let’s ask the question another way: every possible expert to analyze the architecture that might exist, effectively represent the opposite of the Frankenstein Are there surprises in development or data, however limited it is, and give them capturing uncertainty in reservoir approach. The creation of simple models production geology? ample time to evaluate it. Next, using character? Then, after building the models, might seem moronic to the Frankenstein Surprises are a manifestation of interpretation, interpolation and simulation use some quantitative wizardry to assign modeler, who focuses on a super-detailed uncertainty. Unexpected results are based on the available yet limited dataset, probabilities to each potential outcome. workflow. Oddly enough, the Gilligan surprising. If there was a fully developed you build a 3-D reservoir characterization That is, using what is known about the approach can be done more quickly than uncertainty model that existed prior model. Finally, you proceed with dynamic reservoir as conditioning information, the Frankenstein, because it creates a to drilling a well, surprises would be and economic modeling and come up with define and characterize what is not known variety of simple solutions, though uses minimized: surprises would be reduced to the best business decision. This approach, about the reservoir: model what could be available conditioning data as well. An confirmation of specific cases. Surprises which focuses on using what is known there, what might be there. additional benefit of Gilligan modeling is occur at scales from drilling a single about the reservoir, creates a deterministic This modeling approach is considered that it presents testable scenarios. If the horizontal well, to drilling well patterns, model, which is referred to here as a probabilistic, and the models are called uncertainty is, for example, whether the to full field reservoir management, to “Frankenstein” model. “Gilligan” models. I created the term reservoir is sheet-like or valley-confined, frac’ing patterns in a tight well, to bidding The term “Frankenstein model” was “Gilligan models,” also around 2004, to and if this difference is of economic on a property. In each of these cases, coined by Mark Williams in 2004, then a reservoir uncertainty is present at levels consultant reservoir simulation engineer, that could significantly impact economic who noted that building an intricate 3-D or business decisions. In each of these Earth model often violated timelines for situations, the role of uncertainty and major capital projects, sometimes “killing” how it impacts business value must be its creator, as did Frankenstein’s monster. addressed. Building a single deterministic Even still, the reservoir model could fail “Frankenstein” model may lead to a non- during flow simulation, resulting in the optimal business result, especially in light need to completely rebuild the earth model, of uncertainty. which would take even more time, further Kierkegaard wrote, “Life can only be slowing the progress of the project. understood backwards; but it must be Additionally, lookback studies often lived forwards.” You can replace “life” with showed that these carefully constructed “reservoirs.” models were simply wrong or significantly Essentially, all reservoirs are in error, regardless of the time and care characterized by uncertainty, even if spent in construction. Perhaps the they have been produced for a hundred reservoir was modeled as a sheet when years. Consider the fact that wells are in fact it was valley-confined. Perhaps spaced from hundreds to thousands of the net sand volume of the reservoir was feet apart, wellbores are only inches wide, greatly different than the modeled volume. core is taken relatively sparsely, well logs Perhaps the reservoir was more faulted are subject to all sorts of interpretation than expected or contained wet fault issues and seismic data can never compartments that could not be imaged in resolve reservoir properties at the well log the 3-D seismic. Perhaps the permeability scale. Even the most mature reservoirs was much more heterogeneous than are sparsely sampled. To illustrate the modeled. issue of uncertainty in ultra-mature reservoirs, typical important uncertainties The Gilligan Approach in such reservoirs are: 3-D distribution and definition of saturation, distribution If carefully modeling what is known of saturated geobodies, and even the about a reservoir isn’t the correct approach, distribution and definition of net sand. what else can be done? Another approach The science of reservoir characterization to addressing the problem is to model what Figure 2: The Law of Reservoir Complexification. As reservoirs are developed and produced, additional data are is taking the limited information we have, is not known about the reservoir. provided, and the reservoir typically becomes more complex. Structural complications include defining new fault from wells, seismic and production, and Instead of using limited information to compartments, wet fault compartments and production faults (faults defined based on production data). From a creating a 3-D model using interpretation, create a single 3-D earth model, why not stratigraphic standpoint, as wells are drilled, facies changes are better characterized, and geobody shapes are character build a suite of earth models portraying are defined and refined. Finally, for more mature reservoirs, heterogeneous fluid bodies may occur, such as water lenses every possible reservoir geometry and from water injection in a waterflood. See Goldilocks page 13 u THE BUSINESS SIDE OF PETROLEUM GEOLOGY By EMILY SMITH LLINAS, EXPLORER Correspondent 11 Beyond Exploration How geoscientists can make a financial impact in a variety of company roles
APG members throughout the world technology development, laboratory analysis are proving that geologists can be and technical consulting to management Ahighly beneficial to the oil and gas positions in areas not directly related to the companies that employ them in areas geology, including reserves auditing, strategy, beyond just exploration alone. sales, project evaluation and management,” Two of them are Karyna Rodriguez, vice he said. president of global new ventures at Searcher Vallejo noted how geologists’ training in London, and Eduardo Vallejo, program helps them to develop abilities that enable lead of technologies and subsurface them to perform well in different types of knowledge at YPF Tecnología (Y-TEC) in positions. Buenos Aires. “One of those abilities is curiosity, which In interviews with the EXPLORER, both helps us understand what we cannot see shared stories about their careers and directly and to deconstruct, crumble, analyze provided advice to the next generation of elements to understand and assemble professionals. models. Another is our analytic methodology, which helps us to understand and connect Finding Her Place elements in stages to reduce risk and reach successful results. Also, something that Rodriguez developed an interest in the characterizes us is that we are used to physical world at an early age. taking and managing risks, and this is very Geology was not offered at her grade Karyna Rodriguez, vice president of global new ventures for London-based Searcher, presenting her company’s projects important in many activities,” he said. school in Mexico and England, but she and geological insights gained from from the seismic and well data offshore Peru at the AAPG Pacific Virtual Basins Vallejo uses all three of these abilities in studied geography and developed a Research Symposium, October 2020 his current position at Y-TEC, where he helps great interest in the physical world. When to define and consolidate the company’s deciding what to study at university, she “My ‘rebellious’ response was to study working in the business is that my job strategy for R&D project development and used a careers handbook to search for her physics, but before I finished the first year, has always had a strong technical aspect specialized technological services for the favorite subject. I thought it was too abstract for me. I had requiring creativity and innovation and with industry. Vallejo leads technical relations “For geography it listed teaching as the some friends studying natural science, so I continuous opportunities to learn from with clients and works in other areas, most likely job prospect and as I came decided to study geology instead, and that’s the different disciplines involved in the including technology surveillance, intellectual from a family of teachers, I wanted to do when I found my calling,” he said. exploration cycle,” she said. “But it’s not all property protection and technology transfer something different,” she said. Vallejo received his degree in geology about the technical side, and I have also and licensing processes. “When I turned over the page I came from the National University of Tucumán. enjoyed the challenge of reconciling geology Vallejo said he enjoys a position that across geology. I was sold from beginning While a student, he started working in with the financial and political aspects of the includes both a technical and a business to end of the description. Studying the research with a scholarship from Argentina’s business.” focus. history of the Earth, outdoor fieldtrips, the National Council for Scientific and Technical Rodriguez noted how her role in new “I like being able to work both with Y-TEC opportunity to travel and, last but not least, Research (CONICET). ventures allows her to inform the company’s and with businesses to align the portfolio of the prospect of working in the oil industry Shortly after graduation, he learned of the financial decisions. subsurface R&D projects to the needs and – all resonated very strongly with me,” she opportunity to pursue a graduate program “There are no decisions made at Searcher challenges of the E&P areas to develop and said. that culminated with a job at YPF, Argentina’s which do not consider the geological transfer valuable technological solutions on Rodriguez decided to pursue a career in national oil company. aspect of a project,” she said. “There is no a commercial scale,” he said. “I enjoy working the oil and gas business, and she prepared “The opportunity to work in YPF, a pioneer point in acquiring a large amount of data to ensure that both the portfolio and the by obtaining bachelor’s and master’s in oil and gas, in an environment where to fill in gaps if the geological indications projects always have a comprehensive look degrees in geology at Oxford University and technology holds a central role, along with are negative, as this could end up with the and approach.” a master’s in stratigraphy from University having the chance to be independent and get company having invested a large amount of College London. to know other parts of the country – all this capital in a project which will not sell and will Career Opportunities She worked for companies in Europe and led me to the hydrocarbon sector,” he said. not contribute positively towards oil and gas Mexico before assuming her current role at Once joining the industry, Vallejo never exploration.” Vallejo noted that geologists who Searcher. looked back. He said he has many reasons She also noted that geological insights are interested in technology have many Her current primary responsibilities he likes working in the industry. developed while working on different opportunities at companies during the involve identifying, pursuing and realizing “I enjoy the complexity, the projects at Searcher can lead to the energy transition. new multiclient projects that optimize multidisciplinary approach, the challenges identification of areas with potential “In new energies and (enhanced oil exploration for oil and gas in mature and of oil and gas and energy in general, the prospectivity that were previously recovery), we need geologists to characterize frontier basins around the globe. opportunity to work as a team, applying overlooked, giving the company the and model reservoirs for projects related
Rodriguez says she enjoys having the cutting-edge technologies, the opportunities opportunity to generate unique and valuable to fluid injection (H2, CO2), and they also opportunity to generate projects that can to experience different work environments, projects. are important for carbon capture, use and help make hydrocarbon exploration and learn about other cultures and other storage projects,” he said. development more efficient. geological environments,” he said. How Geologists Contribute He noted that working in technology “There is enormous satisfaction when a provides a myriad of opportunities to project comes to fruition and starts to deliver Not All About the Technical Side Vallejo said his experience and that of support both traditional oil and gas projects as expected,” she said. colleagues has shown that geologists can as well as alternative energy exploration and “I also like the relationship-building Rodriguez echoed Vallejo’s sentiments add value to the energy business in a variety development. aspect, which is one of the key aspects to a and noted that she appreciates how working of areas. “Geoscientists have opportunities as successful project. This involves establishing in the industry allows her to learn and “Though the traditional roles are technicians, not only developing solutions and maintaining a good working relationship contribute in many ways. exploration and development, there are with governments, oil company clients, “What I have enjoyed most about many others, from technical positions like See Career page 13 u partners and of course, the Searcher team,” she added.
The Geology Rebel
Like Rodriguez, Eduardo Vallejo discovered geology through his love of nature and desire to distinguish himself from family members. Growing up in a family of lawyers in Tucumán, Argentina, Vallejo found an early interest in volcanoes and other natural phenomena. When choosing higher studies, his father pressured him to go into law, but Vallejo resisted.
Eduardo Vallejo, program lead for technologies and subsurface knowledge for Buenos Aires-based YPF Tecnología, presenting Y-TEC’s liaison model at an online conference in 2020. 12 By HEATHER SAUCIER, EXPLORER Correspondent EXPLORER FEBRUARY 2021 FEBRUARY 2021 EXPLORER.AAPG.org
Gathering the data set for subsurface data from Texas, US and Canadian Wells Inside a geothermal plant. Photo by B. Cutright The Heat Beneath our Feet Harnessing geothermal energy
n the island of Nevis in the Caribbean, energy sustainably for centuries. its 11,000 residents are on the verge of “Petroleum will always be important. We’re Although the United States is the largest Oan energy transformation. In about two producer of geothermal energy today, years, their cost of electricity will no longer not leaving it behind. But we need to think as Cutright’s sentiments echo the report, which fluctuate with market prices, and not even states, “In spite of its enormous potential, the a hurricane will stop it from flowing. In fact, energy professionals. This is within the areas geothermal option for the United States has over a 25-year period, residents will save an of expertise of our members and has the been largely ignored.” estimated $100 million in energy costs, based on today’s pricing. capacity of changing the world.” Leveraging Oil and Gas Data This is because in late 2022, this island in the Lesser Antilles will bid farewell to diesel, Texas has more than 1.4 million oil, gas which it has imported for more than five context as an energy organization. We have severance tax value for the state. The key to and exploration wells that provide information decades to power its electrical grid, taking the science and engineering capacities to that success was understanding geophysics on deep formation properties and formation huge bites out of its gross domestic product. identify high heat flow areas and productive and drilling technologies, he said. temperatures. The United States has in Severing its ties with fossil fuel power reservoirs, so why aren’t we doing that?” That work piqued his interest in excess of 4.5 million wells that provide similar generation will also reduce Nevis’ carbon Texas alone has the potential for supplying geothermal energy, knowing that the water information. These, along with supporting footprint and, it is hoped, lead the way for all of the United States’ energy needs for cut, or brines, was always considered a waste geologic studies, form the essential basics of similar transitions all over the world. 700 years with geothermal energy, Cutright product. geothermal exploration. How is this possible? said, citing a 2019 GeoVision report entitled, “But these brines are hot, and the heat Yet renovating oil and gas wells to It is the result of a strategic conversion to “Harnessing the Heat Beneath Our Feet,” represents an energy source all by itself,” he harness geothermal energy might not be geothermal energy developed by GeoFrame published by the U.S. Department of Energy. said. ideal, Cutright determined. Many are simply Energy, a newly created partnership between The United States has the ability to increase “Back in western Nevada in the 1800s too small in diameter to produce the flow Schlumberger New Energy, AAPG Member geothermal power generation 10- to 20-fold when everyone was looking for gold, they rates necessary for useful geothermal power Bruce Cutright and business partner Dan by 2050, producing 50 gigawatts of electricity found that it was wrapped in a grey mineral generation. Pfeffer. Their goal is to make geothermal from geothermal sources, the report states. that was regarded as waste until someone Although renovating an oil or gas well energy the most cost-effective and reliable Furthermore, the International Geothermal figured out it was silver,” he said, referencing might typically cost 50 or 60 percent less than means for providing clean, sustainable power. Association expects worldwide geothermal the birth of Silver City. drilling a new well, Cutright concluded that They are beginning in Nevis, with plans for generating capacity to double in the next 15 to With funding from the U.S. Department because of too many unknowns, “it made similar projects in the Caribbean, the United 20 years and to continue growing. of Energy, Cutright developed the Texas more sense to have a purpose-designed well States and North and South America. Geothermal Resource Group at the BEG in to produce geothermal fluids.” In fact, wells Cutright has 35 years of experience in the Silver and Brine 2010, and four years later formed his own drilled specifically to produce geothermal oil and gas industry and serves as the chair of company, Thermal Energy Partners, with water and steam can yield nearly double the AAPG’s Energy Minerals Division’s Geothermal As a former senior research associate Pfeffer. He left the BEG in 2016 to run the produced energy than renovated oil and gas Group. He urges oil and gas professionals to at the Bureau of Economic Geology at the company full-time as interest in geothermal wells. look at the industry in a broader scope. University of Texas at Austin, Cutright worked energy grew. Geothermal wells are designed to produce “Everyone is bemoaning the fact that the for the State of Texas Advanced Resource “Petroleum geologists can make a fluids from the full thickness of a producing petroleum industry is slowing down. The Recovery program, helping oil and gas difference in developing geothermal energy formation. economy is part of the reason, but there’s companies improve production of existing simply by doing what we are very good at,” “We are not worried about intervening also the feeling that it is a great contributor to resources. For every dollar funded by the Cutright said. “Brines are a valuable resource, clay layers. We can perforate the entire climate change. Whether or not that is true, state, Cutright and his team returned $32 and with the applicable technology we can formation because we want to maximize fluid we have to follow where society is leading,” he to $38, generating roughly $500 million in produce renewable, sustainable energy at flow to that well,” Cutright explained. “We as said. “AAPG is a petroleum organization. But competitive market rates.” petroleum professionals have to understand younger members are seeing it in the broader A 2006 report titled, “The Future of efficient ways to capture hot fluids, not just oil Geothermal Energy,” from the Massachusetts or gas.” Institute of Technology, estimated that the In his initial research, Cutright focused on United States could produce 2,000 times the annual domestic energy demand from geothermal sources, providing renewable See Heat page 22 u
Testing of an 18 megawatt geothermal well in Iceland. Photo by B. Cutright. FEBRUARY 2021 EXPLORER.AAPG.org 13
complement their training with other Career knowledge, so that they can interact and from page 11 understand other disciplines,” he said. “That perhaps is a preliminary step, working as a with direct application in processes or geologist and understanding the business operations directly related to our discipline, brings experience to later play other roles.” but also participating in the development of Rodriguez noted that oil and gas will equipment, tools, chemicals, materials and continue to be the main source of energy for software,” he said. decades to come, and that the financial side Rodriguez agreed, and noted that the of the business is an important part of it. emerging field of artificial intelligence is “I think that one of the main rewards another area where geoscientists can also in the future will be to watch countries in make a financial impact. southeast Asia and Africa come out of “Any progress made towards reducing poverty as they get more access to energy,” GEO YOUNG PROFESSIONALS AND STUDENTS the exploration cycle time will reduce costs” she said. WIKI WRITE-OFF COMPETITION she said. “AI is already changing the way “From my point of view, the business side JANUARY 31ST - MAY 30TH 2021 we access seismic data, making seismic of oil and gas is complicated, challenging, CREATE YOUR OWN TECHNICAL ENTRIES FOR THE AAPG WIKI investment dollars go further, and enhancing fascinating and very rewarding. I would the efficiency of gaining insight into any say to any geoscientist who would like the hydrocarbon basin.” challenge to unravel geopolitics, learn about Rodriguez sees the AI at work when using and integrate financial aspects while at the Searcher’s “sAIsmic” web-based platform, same time continuing to apply geological which provides on-the-spot seismic data science, this is the job for them,” she added. access from large datasets stored in the cloud. Geologists at the company develop Hope for the Future machine learning algorithms that to identify key geological features in the large amounts Rodriguez recognizes that, while it isn’t We’re excited to announce that GEO is hosting a virtual Wiki Write-Off Competition of data. always easy to work in the oil and gas for both students and young professionals (YPs). The competition invites students and “We can use AI to automate some of industry, she is convinced that she made the YPs from all around the globe to create and write technical entries related to the oil the repetitive tasks and leave more time for right career choice. and gas industry. The top 3 entries will also be formally recognised. geoscientists to analyze the results, which is “I joined the industry when oil was $10 where the real value is generated,” she said. a barrel. I had just left university, sent over FOR MORE INFORMATION ON THE COMPETITION AND SUBMISSION GUIDELINES 200 CVs and did not get a single reply. I got PLEASE SCAN THE QR CODE Advice to Young Geoscientists my first technical assistant temporary job COMPETITION CLOSING DATE: 30 MAY 2021 through a temping agency. As soon as I For Vallejo and Rodriguez, young started the job, I immediately confirmed that FOR ANY QUERIES, CONTACT KATIE STEIBELT: [email protected] geologists who are interested in the this was where I wanted to build my career,” business side of oil and gas have many she said. career options. “The ride has been bumpy with many ups and downs but the rewards have always “There are no limits,” Vallejo said, outweighed the difficult times. Geology has adding that young people should look for been the fuel that has kept me going and opportunities and be ready to seize them I am so grateful that I turned the page on when the time comes. that careers handbook, as that marked the FOR MORE INFORMATION VISIT “I always suggest that young geologists beginning of the best journey of my life.” EXPLORER geo-expo.com
earth model built for an exploration play, Goldilocks or for early development, will likely not from page 10 be useful as the reservoir is developed, more wells are drilled, reservoir trends are interpolation and simulation. The role of established and quantified and new faults uncertainty in reservoir characterization are found. The Frankenstein approach should never be taken lightly or assumed to cannot be valid in the case of increasing be inconsequential. complexification. “The only certainty is that nothing is To summarize, sometimes the certain,” wrote Pliny the Elder. Frankenstein approach is better, sometimes Uncertainty is pervasive in all reservoirs, the Gilligan but the difference lies in the though reservoir uncertainty clearly nature of the business problem. If uncertainty decreases with production of the reservoir, is the main business focus, then the Gilligan added wells and improved seismic approach is clearly superior. If group quality (Figure 1). The role of reservoir discussion and visualization is the main characterization in the oil and gas industry business focus, or reservoir uncertainty is is always dealing with the relationship of considered minimal, then the Frankenstein what we know and what we don’t know, approach might be more useful. and how that impacts business decisions. Finding the correct solution to the There is always a decision involved with business problem is commonly referred regard to whether a deterministic approach to as the “Goldilocks approach,” and or a probabilistic approach is preferable usually Goldilocks is present somewhere to address the economic issue at hand. between Frankenstein and Gilligan. But In general, uncertainty should always be more fundamentally, the goal of 3-D earth included in a study of reservoir character. modeling and reservoir characterization is always to add value to a business decision. Increasing Complexity In some cases, building a highly deterministic model adds value. In most cases, however, Another interesting feature of oil and gas the characterization and quantification of reservoirs that should be acknowledged in uncertainty has the greatest economic value, reservoir characterization studies is that for all reservoirs. If your company or business reservoirs tend to become more complex as unit relies on Frankenstein 3-D earth models, information is provided by drilling additional consideration of the Gilligan approach would wells and through production. This is likely add value, on every reservoir, from referred to here as the “law of increasing appraisal to ultra-mature, from the spotting
reservoir complexification.” That is, a 3-D an individual well to full-field management. EXPLORER
Dave Larue earned his doctorate in geology under Laurence Sloss at Northwestern University, then became an assistant professor at Stanford University, then a professor at the University of Puerto Rico. He worked for Exxon Production Research as a senior geology researcher, then worked for Chevron in sequence stratigraphy and modeling, then as a consulting geologist for oil field development in the San Joaquin Valley. 14 By MALCOLM LANSLEY EXPLORER FEBRUARY 2021 Geophysical Corner Low Frequency Land Seismic Data Acquisition 1 hertz or 2, what’s the difference?
or many years the geophysical industry amplitudes. has spent considerable time and effort Figure 2 shows a “wedge” model and the Fon improving the high-frequency content result of filtering that model with each of the of recorded seismic data in the pursuit of wavelets shown in figure 1. The reduction in higher resolution. However, in the last two the sidelobe amplitudes by the addition of decades we have seen an increased interest the 2 low-frequency octaves is clearly visible in extending the bandwidth of our data in the comparison between the upper 2 and toward lower frequencies as well. lower 2 filtered panels. The improvement in In this series of two articles, I will the vertical resolution is also obvious when address the reasons we need low-frequency comparing the panels with the additional information, the issues related to its high-frequency octave. On these, the Rayleigh acquisition for onshore projects and discuss criterion of being able to identify two separate the equipment and methods being used. peaks as the wedge thickens is visible at Obviously, in order to be able to record 8 milliseconds reflector separation on the low-frequency reflections, we need to be able wavelets with upper frequency of 96 hertz to generate adequate signal strength in the versus 14 milliseconds for the wavelets with desired low frequency range. This should upper frequency of 48 hertz. be such that, after transmission through the What is not as obvious at this display Earth, we still have sufficient energy to be scale is the distortion of the reflector able to record signals that are not completely wavelets caused by the interference of the buried in noise – either ambient noise or the sidelobes from the nearby reflectors. Figure electronic noise from the recording sensors 3 shows zooms of the wedge model filtered and instruments. The sensors themselves by the 2 octave and 5 octave wavelets. In need to have adequate sensitivity in the the 2 octave image in figure 3a, the peaks of frequency range needed. the reflection wavelets do not align with the An extremely important factor to note model spikes. At the location of the green when discussing the bandwidth of seismic arrow to the left the spike separation is 14 data is that we need to think in terms of milliseconds while the peaks of the wavelets octaves rather than in terms of hertz (or are separated by just over 18 milliseconds. cycles per second, as we used to call them). At the right edge of the model, the actual When asked what low frequencies are model separation is 30 milliseconds whereas wanted, many geologists or geophysicists the apparent thickness is approximately 2 will say “Oh, 1 or 2 hertz.” If we think in terms Figure 1: Wavelet design spectra and corresponding wavelets. milliseconds less. In figure 3b, the broader of hertz, this does not seem to be a very wavelet bandwidth reduces the sidelobe significant difference, but 1 to 2 hertz is a The first is that it will provide higher resolution therefore different frequency ranges. The interference and the signal peaks are more complete octave. There is often a substantial and more “character” to the processed uppermost wavelet has 2 octaves and it is closely, but still not perfectly, aligned with the increase in data acquisition cost that results seismic images. The second is that when low apparent that the level of the sidelobes of the model spikes. from acquiring this additional octave. frequencies are missing, any form of seismic wavelet are quite high relative to the central In this first article, we will review the inversion is less stable than when they are peak. The second image shows the addition Improvement in Geophones reasons we need low frequencies, the signal present. The third is that they are extremely of 1 octave of higher frequencies. The central transmission, the sensors used to receive important in the development of accurate lobe is clearly much narrower, as is expected, For many years the geophysical industry the reflected signals and the recording velocity/depth models needed for modern and will directly provide higher resolution has perhaps been more focused in extending instruments themselves. In next month’s high accuracy pre-stack depth migration in the data. However, the sidelobes are still the recording bandwidth to the upper article we will assess the differences between algorithms. The last is that in regions with quite high and will overlap and interfere with frequencies in the pursuit of higher resolution. using explosives versus vibrators and the sub-coal, sub-salt or sub-basalt reservoirs, primary reflections from closely-bedded By far the most common geophones used advantages and disadvantages of each. the low frequencies are necessary to provide formations. The third and fourth images from today have a natural frequency of 10 hertz Discussion the penetration required through the strong the top show the result of adding 2 additional providing a flat response proportional acoustic impedance contrasts. octaves of lower frequencies to the first There are four primary reasons commonly Figure 1 shows four different signal and second wavelets, respectively. These stated for acquiring lower frequency data. wavelets with different octave ranges, and clearly show the reduction of the sidelobe Continued on next page u
Figure 2: Wedge model (top) with wavelets applied below. Figure 3: Wedge model zoom with (a) 12-48 hertz wavelet, and (b) 3-96 hertz wavelet, with model spikes overlaid. FEBRUARY 2021 EXPLORER.AAPG.org 15 t Continued from previous page to ground velocity above this frequency, and a response falling at 12 decibels per octave, below. See figure 4a. Over time, improvements have been made in such geophones to tighten parameters and reduce distortion yielding the range of high specification geophones that most seismic recording crews use today. Improvements in digital filtering in our recording systems have allowed for steeper-sloped anti-alias filters pushing the -3 decibel point toward 80-percent Nyquist. As most data is now recorded at 2 milliseconds with anti-alias starting at about 200 hertz, this has led to geophones with higher spurious frequencies Figure 4: (a) Amplitude response of typical 10 hertz geophone and 5 hertz high sensitivity geophone. The green line shows the slope of constant acceleration (e.g. MEMS sensor) pushed up into the rejection band near when plotted in velocity domain. (b) Phase responses of typical 10 hertz geophone and 5 hertz high sensitivity geophone. Nyquist. All this technology improvement has gone into what manufacturers term the “industry standard”: a 10-hertz geophone. frequencies, we can maintain sensitivity to electronics will exhibit an effect roughly summing. The electronics can also show DC As we have seen above, extending lower frequencies and then inverse filter to proportional to the inverse of the frequency, offset. This offset is frequently introduced the bandwidth to lower frequencies also very low frequencies. or 1/f, which means that the random in the A/D converter and biases the data improves resolution. If we wish to record electronic noise will increase as frequency positive or negative. The offset can be signal with good signal-to-noise ratio down to Controlling for Noise reduces. This effect raises the noise floor removed by computing an average value 3 hertz or 2 hertz or even down to 1 hertz, we at low frequencies, so the lower frequency over a record and then subtracting that value need to consider the receivers and recording The electronics in the recording system we record the higher the random noise from all samples. Modern systems do this as systems to be used. Fortunately, this is also produce noise, thermal or Johnson contribution from the electronics themselves. part of the acquisition process. If very long not really an issue with modern recording noise. This noise is a function of temperature This thermal or Johnson noise is random recordings are made, this offset can change systems. These systems generally have but is also frequency dependent. Typically, in nature and so will attenuate through over time, causing a drift effect that might DC response. This means they can record look like a very low frequency, usually of a constant level, so have nothing “built-in” period much greater than 1 second. The low that limits their low-frequency response. frequency drift can be removed by low-cut Our high specification 10-hertz geophones filtering. however will show a falling response at Another sensor type that has been low frequencies. A 10-hertz geophone with available for a number of years is the MEMS 70-percent damping is already -3 decibels sensor. MEMS (micro-electromechanical- at 10 hertz and will be an additional -24 systems) digital sensors are accelerometers decibels at 2.5 hertz and -36 decibels at 1.25 and so have a lesser (-6 decibels per octave, hertz. Although high quality low-frequency re. particle velocity) roll-off to low frequencies geophones are manufactured, these are (see figure 4a, green line). Additionally, they generally not as common on seismic crews have a response to DC, which makes them as 10-hertz geophones. good candidates for low frequency recording. Another important factor to consider is However, because there is a similar 1/f, effect that geophone signal output at the lower in MEMS sensors, the noise floor of early frequencies also suffers significant phase generations of these sensors was higher rotation. See figure 4b. The -12 decibels per than that of geophone/analog input recording octave roll-off and the associated phase systems and therefore was a limitation rotation inherent in geophone design can be for recording low amplitude low frequency corrected by inverse filtering. This process signals. In conditions with extremely low flattens the geophone response below the ambient noise, the internal noise of the natural frequency and applies the appropriate sensors could potentially become the frequency-dependent phase rotation. It dominant noise source. A new generation of works well so long as there is adequate MEMS sensors has now been released that signal-to-(system) noise ratio. Typically, with has overcome the noise issues but, because reasonable signal strength, we can flatten of the large number of high performance the geophone response to about 2 octaves 10-hertz geophones already in use, it might below the natural frequency, so for a 10-hertz take some time before they see routine geophone, we can get down to about 2.5 usage. hertz. By using geophones with lower natural It should be noted that the self-noise of an analogue geophone is extremely low since this is caused by the thermal or Brownian Malcolm Lansley motion of the air molecules surrounding the retired in 2015 moving mass. Because the geophone low from his position frequency roll-off is a mechanical effect, it as vice president of reduces both the signal and the ambient geophysics for Sercel, noise to the same degree, preserving Inc. in Houston. He signal-to-(ambient) noise ratio. However, remains active in the under some conditions, typically low signal industry as a consulting geophysicist strength, the amplitude of the signal from the advising on 3-D seismic survey design geophone might fall below the noise floor or for all operational areas both onshore, the recording system, and then the signal-to- offshore and in the transition zone. He total noise ratio becomes compromised. A also continues to teach courses for the significant benefit of analogue geophones in Society of Exploration Geophysicists and such cases with very low levels of signal is other companies on a variety of subjects that their output may be summed in arrays from basic geophysics, 3-D survey to improve the signal-to-noise (both ambient design and acquisition, data processing and system) ratio. and vibrator theory and usage. He Earth unrest should also be considered. In received a bachelor of science/ARCS in the normal seismic band, Earth tide and other physics, mathematics and geophysics low frequency motions are well below the from Imperial College of Science and surface ambient noise and so do not trouble Technology in London in 1969 and has us. As we go to lower frequencies these earth worked continuously in the geophysical noises become stronger, again following a 1/f industry since graduation. relation (Peterson model) and might need to be considered. Figure 5 shows a test comparison of standard high-performance 10-hertz geophones in comparison with high- Figure 5: CRG gathers with full bandwidth (left) and frequency panels for the first five octaves (right): 10 hertz geophone (top), 5 hertz high sensitivity geophone (middle) and low noise MEMS (bottom). Geophones have inverse filters applied to correct for amplitude and phase. See GeoCorner page 23 u 16 By GUSTAVO CORONEL EXPLORER FEBRUARY 2021 Historical Highlights
Ecuadorian plaintiffs with lawyer Steven Donziger (center) and Pablo Fajardo (right) A group of plaintiffs brought to New York City by the Donziger team Chevron in Ecuador The Case of the Deceptive Underdog n February 2011, the court in the small Affiliates, for items related to the obligations introduce a 2003 legal action in Lago Trial and Verdict Ecuadorian town of Lago Agrio sentenced assumed by Texaco … ” Agrio against Chevron, the new owner of IChevron Corporation to pay $9.3 billion This was not the end of the story. In Texaco assets and liabilities. The nature Stunningly, the majority partner in the to a group of about 30,000 Ecuadorian 1999, Ecuador passed a new Environmental and length of this trial, which was based on consortium, the state oil company Petro residents of the Amazonian region where Management Act, allowing individuals to the retroactive application of the new law, Ecuador, was not named as co-defendant in Texaco, later acquired by Chevron, had been introduce legal actions against potential captured much attention in international oil the action. The only defendant was Texaco, producing oil for 26 years. transgressors of the environment. This and environmental circles. As a petroleum now Chevron, the foreign company which The trial was the stuff of which became the legal opening used by lawyer geologist familiar with the area, I became had left the country years before, although the Hollywood movies are made. This legal Steven Donziger on behalf of the Ecuadorian very interested in the proceedings and sole operator in the area since 1992 had been saga combined fundamental environmental plaintiffs, Maria Aguinda and others, to started to read all I could about it. the Ecuadorian state oil company. It seemed issues, political intrigue, judicial corruption, to me that a “crime scene” that had been corporate greed and cliff-hanging courtroom trampled by other actors could not be easily drama. Above all it unveiled the tragedy of connected to someone who was long absent. a young and brilliant U.S. lawyer who felt In 2009, I met separately with he could obtain big money from a giant oil representatives of the two sides: Karen corporation while becoming a hero for the Hinton, a Washington, D.C. spokesperson for underdogs of this world. the plaintiffs and Jim Craig, a spokesperson As the events unfolded, he found out that for ChevronTexaco. I told Hinton that in his actions would not turn out as planned. my view, Petro Ecuador was the party The leader of the legal team for the primarily responsible for any damages to the plaintiffs was a Harvard-educated lawyer environment in the area. She told me they named Steven Donziger, accompanied by had retained a very competent technical firm, well-known Ecuadorian environmentalists STRATUS, from Denver, Colo., which had Luis Yanza and Pablo Fajardo and a group been studying the case. Craig let me know of Ecuadorian lawyers. It ran from 2003 his doubts about the transparency of the to 2011 and was followed by related trial. He later sent me information about an legal actions in the United States and the expert named by the court, Stalin Cabrera, Netherlands; the proceedings in New York whose training and experience in petroleum are still active. matters left much to be desired. This expert had submitted a report in March 2007 that Opening Statement described the damages presumably done by Texaco, asking for total remediation and Between 1964 and 1990, the U.S. oil compensation costs close to $8 billion, later company Texaco operated an oil production doubled to $16.3 billion for “unjust enrichment” concession from the Ecuadorian government on the part of Texaco. In November 2008, on behalf of a consortium made up of the expert updated his report increasing Texaco, Gulf Oil Corp. and the Ecuadorian his assessment of damages to $26 billion, state oil company Petro Ecuador. In 1977, in order to compensate for more pollution- Gulf left the country and Petro Ecuador related deaths than previously reported. became the owner of 62.5 percent of the In February 2011, the Lago Agrio court shares while Texaco remained as operator decided against Chevron, ordering the and minority partner. Texaco ceased company to pay around $19 billion, the exact operations in 1990 and, from this time amount fluctuating after several appeals by onward, the sole operator in the area has the company, finally reduced to $9.3 billion. been the state oil company Petro Ecuador. On Sept. 30, 1998, the minister of Chevron Investigations Cast petroleum of Ecuador and representatives Doubt on the Verdict of Petro Ecuador and other Ecuadorian government agencies related to the activity In parallel with the trial, Chevron had been signed a full release to Texaco Oil “and all investigating the activities of the main actors their respective agents, servants, employees, and progressively discovered very damaging officers, directors, legal representatives, information against the judges, the court insurers, attorneys, indemnitors, experts and the legal team of the plaintiffs. guarantors, heirs, administrators, executors, Some of the findings included the following. beneficiaries, successors, predecessors, In September 2009, Chevron found video principals and subsidiaries forever, from any information on a $3 million bribe scheme liability and claims by the Government of the Republic of Ecuador, Petro Ecuador and its Map of the area from “Law of the Jungle,” by Paul M. Barrett Continued on next page u FEBRUARY 2021 EXPLORER.AAPG.org 17 t Continued from previous page involving the case’s judge and Ecuadorian government officials, including the legal adviser to Ecuadorian President Rafael Correa, an action designed to influence the outcome of the trial in the plaintiff’s favor. Transaction records found in Texas banks further documented the bribe scheme. It was also found that Cabrera’s report had not been written by him but by the Colorado firm STRATUS and paid for by the plaintiffs. A book on this case, “Law of the Jungle”, by Paul M. Barrett, details (pages 151-157) how STRATUS was paid $1.7 million to generate a 3,000-page report signed by Cabrera, recommending that Chevron pay $16 billion for damages. For his services, Barrett reported, the Donziger team paid Cabrera at least $392,000. A documentary film titled “Crude,” produced by Joseph Berlinger, highly supportive of the plaintiffs, generated much more material than utilized in the final product. In their New York Tribunal action against the Ecuador verdict, Chevron demanded and successfully obtained the total footage, which revealed meetings of the plaintiffs planning the fraud against Ecuadorian President Correa dipping his hand in the wrong pool Chevron. A video posted at the Chevron–run The Amazon Post website contains abundant graphic material left out of the final version of the government of Ecuador to pay the legal the documentary showing Donziger describing costs incurred by Chevron. the Ecuadorean court system as corrupt and joking about assassinating an Ecuadorean An Ideological Twist judge – or at least making him fear he will be assassinated. In the videos, the plaintiffs The story is still unfolding. Donziger has discuss the lack of evidence on their side while been convicted but his cause has been taken Donziger points out that “they can simply up by several environmental groups, who create their own facts.” During a meeting see him as a hero battling the all-powerful attended by the court expert Cabrera, Donziger oil company. The case against Chevron has and the consultants retained by the plaintiffs, almost become a religious movement, taken they also discuss how they will write the court up by some groups that consider Chevron the expert’s report. In this video, Donziger is seen guilty party. Recently, a group of 30 Nobel Prize and heard stating that the work plan would winners published a manifesto, which can be involve “writing the expert’s opinion.” The found at CourtHouseNews.com, entitled, “30 meetings can be seen at AmazonPost.com. Nobel Laureates Demand That Chevron Face A July 2013 report by the New York Justice for Amazon Pollution,” in which they Times describes how one of the STRATUS hail Donziger as a champion of the poor and consultants tells Donziger that there was no the weak and, as the title conveys, demand that evidence of pollution in the oil pits examined, Chevron pay for the damages done in Ecuador. and how Donziger responded, “This is Ecuador, Although it seems tempting to side OK. At the end of the day, there are a thousand Actor Danny Glover became one of President Correa’s recruits for his campaign. with such a distinguished group, the people around the courthouse and you will get evidence against Donziger and his team is whatever you want.” placed his hands in an oil pool, claiming with a ruling that stated, “Donziger and the overwhelming. It is perilous to politicize the On the basis of these findings, most this was the proof of Chevron’s crime. Ecuadorian lawyers fabricated evidence … environmentalist cause as these groups are scientific experts originally contracted by However, the site where he placed his hand in they handpicked and paid the Court Expert trying to do. By calling upon environmentalists Donziger ended up testifying against him September 2013 was not one of Texaco’s old … paid a Colorado Consulting firm to write to defend Donziger and to indict Chevron, at the New York trial, as reported by The oil pits but Petro Ecuador’s. the expert’s report … promised the judge these ideologically driven groups exert a subtle Amazon Post. The campaign recruited Hollywood actors $500,000 to rule in their favor …” form of extortion on all who support the cause In January 2013, Chevron presented such as Danny Glover, Mia Farrow and Darryl In a 500-page ruling, the judgment of the environment. Many of us defend the evidence that the Lago Agrio judge, Nicolas Hannah and other celebrities, some of whom prohibited Donziger and his clients from environment and favor the development of Zambrano, had not been the author of the were reported to have received substantial profiting in any way from their fraud. This greener, renewable sources of energy but, judgment. The document had apparently payments to support the campaign. decision was unanimously affirmed in knowing the facts of the Chevron-Ecuador been ghost-written by a former judge, Alberto August 2016 by the United States Court of case, find it impossible to side with Donziger Guerra, a job for which, Chevron claimed, he Courts Absolve Chevron, Appeals for the Second Circuit, which stated, and against Chevron. had been paid by the plaintiffs. In his book (p. Condemn Donziger “Donziger and his team engaged in a parade The preservation of our environment is 234), Barrett reports that linguistic experts of corrupt actions … including coercion, fraud one of the noblest human aspirations. All hired by Chevron demonstrated that about In February 2011, Chevron filed suit and bribery.” Donziger was ordered to pay $32 life should be respected, the preservation one-third of the judgment had been lifted against Donziger in a Manhattan court, based million in legal expenses and faced potential of the species is more important than any verbatim from internal memoranda written by on the Racketeer Influenced and Corrupt professional disciplinary action. one individual, and the fate of the planet the plaintiff’s team. Organizations Act (RICO), Judge Lewis In 2018, the International Permanent transcends national boundaries and political In 2007, Ecuadorian President Rafael Kaplan presiding. Pablo Fajardo, Luis Yanza Court of Arbitration at The Hague upheld the ideologies. Environmentalism should never Correa mounted a political campaign designed and the consulting firm STRATUS were decision of the New York Court, denying the become tainted with partisan politics or
to intimidate the judge in charge of the named as co-defendants and organizations attempt by the Ecuadorian government to ideological astigmatism. EXPLORER case and browbeat the defendants. Among that had supported Donziger such as Patton collect money from Chevron on the basis of other things he declared: “Chevron-Texaco’s Boggs and Kohn Swift, Amazon Watch the Ecuadorian judgment. The international Editor’s Note: The author notes that attorneys, they (are) lawyers ‘vende patria’ and Burford Capital were named as co- court stated that the Ecuadorian judgment he does not have, and never has had, any (sold to foreign interests), who for a fistful conspirators. This trial ended in March 2014 had been corrupt and fraudulent and ordered relationship with any of the parties mentioned of dollars are capable of selling their souls, in this article, nor has he ever received any their country. We also have people from Petro compensation from any source for expressing Ecuador who in 1998 signed an Agreement Gustavo Coronel received degrees in petroleum geology from his views on this case. declaring everything had been remediated, the University of Tulsa and the Universidad Central de Venezuela. when many of these pits had not been even He was a Harvard fellow of international affairs and earned a (Historical Highlights is an ongoing covered. I hereby call the Attorney General to master’s in international public policy from Johns Hopkins University. EXPLORER series that celebrates the “eureka” present a report to the General Comptroller’s Coronel worked for 30 years in the international petroleum industry moments of petroleum geology, the rise of Office establishing criminal responsibilities in Venezuela, the United States, Holland, Indonesia, Bolivia, Peru, key concepts, the discoveries that made a against Petro Ecuador’s officials who signed Ecuador, Argentina, Surinam, Nigeria and Algeria. He is a founding difference, the perseverance and ingenuity of this nonsense.” member of the Board of Petróleos de Venezuela. He has worked on our colleagues – and/or their luck! – through However, the attorney general never found petroleum projects for the InterAmerican Development Bank, was a stories that emphasize the anecdotes, the a basis to write such a report. representative of Transparency International in Venezuela, was founder and president of good yarns and the human interest side of our In order to pressure Chevron to pay the the NGO “Pro Calidad de Vida,” and gave the workshop “Strategies to Control Corruption” E&P profession. If you have such a story – and amount dictated by the Ecuadorian verdict, in Venezuela, Panama, Bolivia, Paraguay and Mexico to about 13,000 people. He has who doesn’t? – and you’d like to share it with Correa mounted a campaign called “Dirty written five books on Venezuelan politics and petroleum and is an active blogger at your fellow AAPG Members, contact Matthew Hands in Ecuador.” He visited the area and LasArmasDeCoronel.blogspot.com, where a detailed list of references may be found. Silverman at [email protected].) 18 By DOUG COOK, AAPG Astrogeology Committee General Vice Co-Chair EXPLORER FEBRUARY 2021 Mars 2020 Perseverance Rover and International Mars Fleet Arrival Mars Perseverance Watch Party The NASA Perseverance mission will land on Mars on Thursday, Feb. 18 at approximately 12:30 p.m. Pacific time (2:30 Central). Join AAPG President Rick Fritz and members of the AAPG Astrogeology Committee and others for a watch party and discussion. Visit AAPG.org for the exact time and link.
Perseverance landing sequence. (NASA JPL-Caltech)
s this EXPLORER issue goes to press, there are be deployed in May 2021 for a proposed landing zone in three international robotic missions headed to their Utopia Planitia. The mission goals are to find evidence for Aencounters with Mars this February. We wish all current and past life, characterize Martian soil composition, three missions success! and map water ice distribution. The United Arab Emirates’ Hope Mission will enter The NASA/Jet Propulsion Laboratory Mars Mars orbit on Feb. 9, 2021. Its goal is to study Martian Perseverance rover is scheduled to land at Jezero atmospheric dynamics and weather. Crater on Mars on Feb. 18, 2021. At the time of writing, China’s Tianwen-1 Mission is expected to enter Mars Artist’s concept of Perseverance Rover landing with its sky crane system. Image courtesy of NASA JPL-Caltech. orbit on Feb. 10, 2021. A lander with a Mars rover will Continued on next page u FEBRUARY 2021 EXPLORER.AAPG.org 19
Perseverance Rover mapping Mars Jezero Crater Perseverance Rover analyzing Jezero subsurface with RIMFAX ground penetrating radar. Crater surface rocks with PIXL (Planetary Image courtesy of NASA JPL-Caltech. Instrument for X-ray Lithochemistry) and drilling with its rotary-percussive rock coring system. Image courtesy of NASA JPL-Caltech.
t Continued from previous page like a flaming meteor at 20,000 miles per hour. The heat A Geologist in the Field on Mars: shield is jettisoned at 1,500 mph and a special parachute Core, Baby, Core! is deployed to further slow the rover toward its designated Perseverance is 34 million miles from the Red Planet with landing site. The Perseverance rover has a primary mission span of at 88 percent of its journey complete. The Perseverance The landing system will use Terrain Relative Landing for least one Martian year (687 Earth days). Hopefully, an extended rover is a fully packed geology science laboratory. The the first time to program adjustments for a more precise mission will carry on science for many more years. After car-sized rover is about 10 feet long, 9 feet wide, 7 feet landing. The system employs a camera and computer to instrumentation check out, Perseverance will begin its search tall, and weighs 2,260 pounds on Earth. The October quickly identify mapped features on the surface and to for past life in Jezero Crater, test the Ingenuity drone helicopter, 2020 EXPLORER reviewed Perseverance rover’s geology determine exactly where it’s heading relative to program. and cache samples for future return to Earth. instrumentation. The November 2020 EXPLORER featured The landing computer will select the safest spot in the Perseverance has a drill for coring on its robotic instrument an article on Jezero Crater geology. designated landing zone. arm. The drill is larger and more capable than the one on At an altitude of 13 miles and velocity of 200 mph, Curiosity rover. The upgraded instrument is a rotary percussive Seven Minutes of Terror the rover jettisons the parachute and backshell. It then drill that can cut intact rock cores. The cores will be placed transitions into powered flight with eight thrusters on its in sample tubes via a complex storage system. The saucer Only 40 percent of the missions ever sent to Mars have sky crane. shaped bit carousel on the front of the rover holds drill bits and been successful. Perseverance is the fifth rover to attempt At a final descent speed of about 2 miles per hour, 12 provides them to the corer on the turret arm. The bit carousel landing on Mars. The rover’s complex landing system was seconds before touchdown, and 66 feet above the surface, transfers sample tubes cores into the belly of the rover. Sample successfully pioneered by the Curiosity rover, which landed the sky crane lowers the rover on a set of cables. As soon return to isolated, sterile labs on Earth will require a separate at Gale Crater on Aug. 6, 2012. The landing sequence is as the car-sized rover senses that its wheels have touched mission, perhaps as early as 2031. dubbed “seven minutes of terror.” The landing sequence the ground, the cables are severed and the sky crane flies Good luck and Godspeed on your landing Perseverance!
begins by entering Mars atmosphere on a heat shield away. Then get to work! EXPLORER 20 By JASPER OSHUN, MARGARET LANG and KRISTINA KEATING EXPLORER FEBRUARY 2021 FEBRUARY 2021 EXPLORER.AAPG.org Foundation Update Student-Led Water Development in the Andean Puna
onanza en los Andes” was a Zurite community partner Tomás Ruiz López swings the two-year Geoscientists Without combo (sledgehammer) to produce a seismic source “BBorders-funded project focused on along a seismic refraction survey crossing a bofedal the Andean community of Zurite, Perú. in the Upper Ramuschaka Watershed. Yojana Miraya Bonanza was designed around three Oscco (M.S., HSU Environment and Community 2018) interconnected themes: and Jazmin Sandoval (Film, 2019) provide support carrying equipment. Yojana assisted in translating u A community-based irrigation canal between Spanish, English and Quechua and both Yojana development project and Jazmin conducted interviews with community members, students, staff, and PI’s. u A hydrogeologic investigation of water resources in the understudied Andean puna u An educational program designed to your support … that perhaps we will never train students in multidisciplinary research to be able to return to you, but for which you bridge gaps between science and society should feel a great sense of satisfaction.”
Zurite has a population of 4,000 and is as glaciers recede, their hydrology is poorly than 100 families directly benefit from Hydrogeologic Impact located at 3,400 meters above sea level on understood. irrigation water now reaching their fields by the edge of the Anta Plain, approximately 30 way of the new canals. Principal investigator Our hydrogeologic study has produced kilometers northwest of Cusco. More than Community Impact Oshun gave community presentations several key results, many of which are 70 percent of Zuriteños devote themselves on the objectives of the Bonanza project in preparation for publication. First, we entirely to agriculture and there is a rich We collaborated with the community and presented the municipality with a identified and mapped the geology of the history of agriculture and animal husbandry. to build 1.3 kilometers of irrigation canals. progress report in 2020. The report presents URW to reveal Eocene sedimentary units Major crops include corn, wheat, quinoa Principal investigators developed formal initial results on water resources in the include limestone, sandstone and mudstone. and forage for livestock. Rainfall is strongly agreements with three community groups, Ramuschaka and a brief assessment of An Oligocene quartz monzodiorite intrusion seasonal, with only 10 percent of the 855 including the municipality of Zurite. Our landslide hazards. The hydrologic results will outcrops in the west. Seasonally saturated millimeters of mean annual precipitation project contributed $20,000 to the $70,000 help guide sustainable water management. falling between May and September. Zurite canal project. We also collaborated with The community issued a statement that derives irrigation and municipal water from engineers on the hydraulic design. More read in part, “We are infinitely grateful for Continued on next page u the 6.14-square kilometer Ramuschaka Watershed, which drains grasslands rising The AAPG Foundation since 2015 humanitarian application of geoscience provide communities with healthier places to dramatically to 4,500 meters above sea level. has supported the humanitarian initiative knowledge and technology around the live is of real value to us. The Upper Ramuschaka Watershed (URW) “Geoscientists Without Borders,” which world.” “Obviously, the global aim and application is part of the puna biome, a seasonally dry provides relief and geoscience expertise Water shortages, landslides, earthquakes of the humanitarian aspects of geoscience grassland above the tree line and below to help communities overcome the threats and tsunamis are all among the conditions are efforts we can truly be proud to support,” the permanent snow line along the spine of resource shortages and environmental tackled by the geoscience teams who help he added. of the central and southern Andes. Many hardships, both natural and human induced. communities under the GWB banner. AAPG Editor Robert Merrill, of Catheart The international program, administered “The AAPG Foundation is excited to Energy in Houston, has been an active headwater streams originate in the puna by the Society of Exploration Geophysicists, support Geoscientists Without Borders,” supporter and participant in GWB initiatives, and although these streams provide water started in 2008 with a grant from founding said AAPG Foundation Chair Jim Gibbs. and he encouraged and coordinated this to Andean communities large and small supporter Schlumberger to “support “Supporting geologic initiatives that also help month’s report. and are likely to become more important
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