Iraqi Kurdistan All in the Timing

GEOSCIENCE & TECHNOLOGY EXPLAINED
GEOSCIENCE & TECHNOLOGY EXPLAINED
GEOSCIENCE & TECHNOLOGY EXPLAINED
Editorial
The Lifeblood of the Industry
There is a lot of depressing
news out there. Shell,
Marathon, Anadarko, Husky
Energy, Chesapeake… just a
few of the O&G companies
which posted poor third
quarter results. Virtually every
day an exploration or service
company announces layoffs,
and freezes on recruitment
and salaries are commonplace.
Meanwhile, the number of
new drilling permits issued by
the Texas oil and gas regulator
plummeted by more than
half in a year. If the oil price
continues to be depressed for
Richmond Energy Partners
140
120
100
80
60
40
20
0
REP40 net wells and success rates, 2008–2015 (YTD)
2008 2009 2010 2011 2012 2013 2014 2015
(YTD)
Net exploration wells – TOTAL REP40 – All
Net CSR – TOTAL REP40 – All
Net TSR – TOTAL REP40 – All
some time, there seems to be little left to cut without impairing long term stability and safety.
But there are always two sides to every story. As Thomas Smith explains on page 90, the
drop in drilling permits in Texas has actually been accompanied by an increase in production,
as companies learn to drill more efficiently. Norway’s recent offshore round received
applications from 43 companies, about the same as the previous, pre-slump offering, while
two significant discoveries have reportedly been made in the now very mature waters of the
UK North Sea. In the eastern Mediterranean there is a lot of excitement over ENI’s discovery
of an estimated 30 Tcf of gas in a previously overlooked play offshore Egypt. There still appears
to be an appetite for exploration.
According to analysts Richmond Energy Partners, exploration activity this year is down
by more than 40% and commercial success rates have fallen to 24%, with only one in five
technical exploration successes being deemed a commercial success in some areas. As we
all know, the present slump in the industry is partially due to a glut of hydrocarbons in the
system – so in the present climate do we stop exploring? Or do we keeping looking and try
to get better and more efficient at finding oil and gas? It would appear that the slowdown in
activity means that now is a good time to pick up acreage, as companies divest and fewer of
them are chasing the opportunities.
Don’t give up on exploration. It is the lifeblood of the industry.
70%
60%
50%
40%
30%
20%
10%
0%
Net wells and commercial versus technical success rates, 2008–2015
(YTD), based on Richmond Energy Partners’ benchmark group of 40 active
mid and large cap explorers.
VOL. 12, NO. 6 – 2015
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Jane Whaley
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IRAQI KURDISTAN: IT’S ALL IN THE TIMING
Faulted and folded Upper Cretaceous layered carbonates near
Sulaymaniyah in Iraqi Kurdistan. The region is thought to hold about
45 Bbo, and understanding its complex structural history is key to
unlocking its potential.
Inset: Colorado’s Rangely field has been producing for over 70 years –
and still going strong.
geoexpro.com
EXPLORATION
Iraqi Kurdistan:
All in the Timing
RESERVOIR MANAGEMENT
Avoiding Reservoir Souring
GEO TOURISM
The Ross Sea, Antarctica
MATURE FIELDS:
Teamwork at Rangely
G E O L O G Y G E O P H Y S I C S R E S E R V O I R M A N A G E M E N T
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Cover Photograph:
Main Image: Jon Gutmanis
Inset: Thomas Smith
Layout: Bookcraft Ltd.
Print: NXT Oslo Reklamebyrå
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issn 1744-8743
GEOExPro November 2015 5