Post on 08-May-2019
Status: Draft
Statoil’s business area
Statoil module – Field Development - MEK4450 - 2011
Magnus Nordsveen
Status: Draft
Content 1st lecture
1st hour
• Oil & gas reserves
• Statoil’s current operations
• Statoil’s strategy
2nd hour
• Example of a field development
Status: Draft
Oil reserves 2006 (Source: Oil & Gas Journal)
Status: Draft
Proven Gas Reserves at end of 2004
(PESA news, August/September 2005)
Russia: 24%
Iran: 16%
Qatar: 14%
.
.
.
Norway: 1.6%
Status: Draft
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
R
ussia
Ir
an
Q
atar
S
audi A
rabia
U
nite
d Sta
tes
A
bu-D
habi
Nig
eria
V
enezu
ela
A
lgeria
In
donesi
a
Ir
aq
A
ustra
lia
C
hina
T
urkm
enist
an
N
orway
M
alays
ia
E
gypt
K
azak
hstan
K
uwai
t
U
zbeki
stan
C
anada
Libya
A
zerb
aijan
N
ethe
rlands
In
dia
U
krai
ne
P
akista
n
B
olivia
O
man
R
omani
a
Proven gas reserves are fairly concentrated…
Source: Cedigaz
CIS
29,5 %
Middle East
40,9 %
North Africa
4,5 %
Sub-Saharan Africa
3,5 %Asia
7,1 %
Latin America
4,5 % North America
5,2 %
Europe
2,9 %
OECD Pacific
1,8 %
…but unconventional gas could change this picture
1,6%
30 biggest gas producing countries’ shares of global proven gas reserves
Status: Draft
Definitions (1)
Oil in place: Total estimated oil in an oil reservoir
Oil reserves: Producible fraction of Oil in place
Recovery factor: Ratio Oil reserves/Oil in place
Average recovery factor in world for conventional oil: ~30%
Presently estimated recovery factor for Oil sand in Canada: ~10%
Current recovery factor from oil fields in Norway: ~47%
Status: Draft
Definitions (2)
Barrel of oil equivalent (boe):
• Energy released by burning one barrel of crude oil: ~1.7 MWh
( 1 barrel ~ 159 litres = 0.159 m3)
• Corresponds to about 165 m3 natural gas: ~1000 barrels
Status: Draft
Value of oil and gas
• Price for 1 barrel oil: ~100$
• Price for 1 boe gas (165 m3): ~50$
• World oil reserves: 1200 Milliarder barrels
• World gas reserves: 1080 Milliarder boe
=> Value of oil is about 2 times value of gas
(CAPEX & OPEX not included)
Status: Draft
Task and references
• Task: Discuss uncertainties in reserves due to:
– recovery factor/enhanced oil recovery
– measurement/estimation techniques
– political factors
– etc.
• References (internet):
– BP Statistical Review
– Oil and Gas Journal
– World Oil
– etc.
Status: Draft
Content 1st lecture
1st hour
• Oil & gas reserves
• Statoil’s current operations
• Statoil’s strategy
2nd hour
• Example of a field development
Status: Draft
Statoil’s current operations
• Present in 34 countries
– Angola: Largest production outside Norway
– Russia: Development of Shtokman gas field
– Brazil: Peregrino production started (Heavy oil)
– Gulf of Mexico: Deep water gas and oil fields
– USA: Shale gas ‘Skifer gass’
– Canada: Oil sand
– UK: Wind mill farms
Status: Draft
Angola
• Operated in Angola almost 20 years
• Partners in 8 producing fields
• Current: 170.000 boe/d
• Pazflor field started production this summer
(expected production of 47.000 boe/d)
Status: Draft
Russia
• Partner in Kharyaga oil field
–Currently 30.000 boe/d
• Shtokman gas field development
–Partner in Phase 1 of development
–World biggest offshore gas fields (~3 times Troll field)
–550 km from shore
Status: Draft
Brazil
• Peregrino – largest operated field outside Norway
• Heavy oil
• Two production platforms
• 30 production wells
• FPSO
Total system simulation
Status: Draft
Gulf of Mexico
• Partner in more than 400 licences
• Deep waters (2000-3000 m)
• Presalt (Large oil reservoir buried below thick salt layers)
• Viscous oil
• Currently low recovery (10-12%)
• Large challenges – large potential
Status: Draft
Statoils key figures
• Statoil’s production in 2010 was ~1.9 million boe/d
– Oil: 1.121 million boe/d
– Gas: 0.767 million boe/d
• Production from outside Norway: ~0.5 million boe/d
• ~50% of Statoil’s resource base is outside Norway
Status: Draft
Some more numbers
Oil and gas:
• Snøhvit gas reserves: 193 billion m3 gas – Value = 290 milliarder NOK
• Ormen Lange gas reserves: 300 billion m3 gas – Value = 450 milliarder NOK
• Aldous Major & Avaldnes: 500-1200 million boe – Value = 250-600 milliarder NOK
• Troll gas field: 1300 billion m3 gas (biggest gas field on NCS)
• Statfjord oil field: 3500 million boe (biggest oil field on NCS)
New energy:
• 88 Sharingham Shoal windmills will produce each 3.6 MWh (~2 boe) – can power 220.000
British homes
• Statoils daily gas & oil production correspond to energy from ~40.000 windmills
Status: Draft
Content 1st lecture
1st hour
• Oil & gas reserves
• Statoil’s current operations
• Statoil’s strategy
2nd hour
• Example of a field development
Status: Draft
Statoil’s strategy
1. Maximise the potential on the Norwegian Continental Shelf (NCS)
Tie ins to existing fields/infrastructure
Increase the recovery (Subsea processing, etc)
New independent discoveries (E.g: In Barents sea, Nordland)
2. International growth
Conventional gas and oil
Unconventional gas and oil
3. Increase our engagement in renewal energy
Status: Draft
Challenges
• Find new oil and gas fields
• Enhanced recovery
–Smart wells (horizontal, zones, branched)
–Water/gas injection wells to maintain reservoir pressure
–ESPs (pumps in wells)
–Sub sea processing
• Transport
–Multiphase to receiving facility (floater/shore)
–Single phase to market
• Deep waters, Harsh environment, Arctic
Status: Draft
Tie backs to floater/shore: Subsea production and long range multiphase flow transport
Oil reservoirs
Gas reservoirs
Status: Draft
Challenges
• Viscocity – pressure drop
–Why?
• Wax precipitation
–Depends on composition
–No problem for high GOR
gas condensate fields (Shtokman, Luva)
• Hydrates (water + gas)
– ~20 oC at high pressures
Status: Draft
Gas condensate long range transport < 500 km
Challenges:
• Pressure drop
• Liquid accumulations in inclinations at low rates
• Surges and slug catchers
• Hydrates (water+gas) Rough seabed – estimated pipeline profile
Status: Draft
Pressure drop – liquid accumulation
• High flow rate: Pressure drop is friction dominated
• Low flow rate: Pressure drop is gravity dominated due to liquid accumulation in
upward inclined sections of the flowline
0
50
100
150
200
250
0 5 10 15 20
Production rate [MSm3/d]
Pre
ssur
e dr
op [b
ar]
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Liq
uid
co
nte
nt
[m3]
Pressure drop
Liquid content [m3]
Friction
dominated
Gravity
dominated
Status: Draft
Task: Pressure drop calculation – gravity
dominated flow
• Flow line over 100 m hill
• Holdup in uphill section: 30 %
• Holdup in downhill section: 0.3 %
• Density of condensate: 675 kg/m3
• Neglect gas
• Neglect frictional pressure drop
• Find pressure drop between 1 and 2
• Compare with single phase flow calculation
(100% holdup in upward and downward inclined sections)
1 2
Status: Draft
Oil field long range transport < 200 km
• Currently < 50 km
• Challenges: Wax, hydrates
• Current solution:
–Keep temperature above hydrate temp.
(insulation or insulation + heating)
–Pigging for wax
• Future alternative: Cold flow
–Transport with particles without settling on wall/plugging
Status: Draft
Heavy oil transport < 50 km
• Challenges:
–High oil viscosity and emulsions => High pressure drop
–Viscosity is very sensitive to temperature
–Potential large problems during shutins and cooldown
• Current solutions for shorter distances:
–Production with large water cut (water continuous oil/water mixture)
–Dilution with lighter oil
–Outcirculation with non viscous fluid during shutins
Athabasca Bitumen, Canada (8.6oAPI)
1
10
100
1000
10000
100000
1000000
10000000
0 50 100 150 200 250 300
Temperature (oC)
Oil
Vis
cosi
ty (
cp)
Status: Draft
Tie backs to floater/shore: Subsea production and long range multiphase flow transport
Oil reservoirs
Gas reservoirs
Status: Draft
Statoil New Energy
Offshore wind
Carbon capture and storage
Geothermal energy, Biofuel and Hydrogen
Status: Draft
Stepwise development of new energy platform
Our main focus is on offshore wind power where we add value by using our
extensive competence from offshore oil and gas activities
• Sheringham Shoal Offshore Wind Farm
• Dogger Bank – Asset for growth
• Hywind – Proven floating wind mill concept
Status: Draft
Sheringham Shoal Offshore Wind Farm
• Scira Offshore Energy Ltd.
(Statkraft + Statoil)
• 50 years lease agreement with The
Crown Estate
Sheringham Shoal
Wind Farm
Status: Draft
• Project Highlights
–Installed capacity 317 MW
–35 km2 wind farm appr. 20 km off the
coast
–Water depth 17m – 22m
–88 wind turbine generators, each 3.6
MW
–Start delivering power to grid August
2011
Wind Farm Highlights
Status: Draft 34 - Classification: Internal 2010-11-24
Dogger Bank – Asset for growth
• Target 9 GW production, potential to increase to 13 GW
• Area: 8660km2 (3343 square
miles)
• Distance from shore: 125-290 km (77-180 miles)
• Water depth: 18-63 m (59 to
206 ft) • High wind speeds >10 m/s
average wind speed across the zone
DOGGER BANK KEY FACTS
Status: Draft
Cost of Energy could reach grid parity in high cost
electricity markets during the next decade
• Potential for further cost reduction
–Lighter / cheaper turbines
–Mass production
–Supply chain development
–Improved installation methods
Status: Draft
References for Statoil
• www.statoil.com
• Statoil in Brief: 2010/11 (brochure)