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By Velda Addison, Group Senior Editor
Some of the largest oilfield services companies in the world such as Schlumberger, Baker Hughes and Halliburton are ‘enablers of the transition’ to cleaner forms of energy, an analyst said during Evercore’s Global Energy Outlook in late March.
A majority of CEOs in the energy sector are also eager to lock in the sustainability and climate change gains made by oil and gas companies during the pandemic, according to a recent survey by KPMG.
All types of renewables will be needed to help reach carbon emissions reduction targets, the CEOs say.
The energy transition is moving at a fast and furious pace, and the oil and gas industry not keeping up presents its own series of risks, including alienating investors and falling behind in recruiting talent.
Executives from Ecopetrol, Petrobras and Pemex in Latin America share insight on how their companies are adjusting and the role of natural gas in the energy transition during CERAWeek by IHSMarkit.




t’s no secret that even before the pandemic knee-capped the industry last year, oil and gas exploration was mired in its own downcycle. With the notable exceptions of Guyana and Africa, major discoveries in more traditional and productive basins like the Gulf of Mexico and U.K. Continental Shelf have been few and far between.
And with many analysts predicting a peak may come soon—or relatively soon at least—it’s fair to wonder if we’ve seen peak exploration as well. Considering the early stages of the energy transition evolution the industry currently finds itself in, it would be unwise to discount the role exploration can play.



espite the exploration market in upstream oil and gas experiencing what TGS CEO Kristian Johansen has described as a “deep cyclical trough,” exploration companies, like so many others in the oilfield services (OFS) sector, are learning to adapt. In many cases, such as for TGS, adaptability includes diversification into avenues of the energy transition and increased focus on ESG.
TGS, self-described as an energy data and intelligence company, launched its New Energy Solutions (NES) business unit in February. The new component of the company aims to provide data-driven applications and solutions for wind energy, carbon storage, geothermal and deepsea minerals.

pun out of Calnetix Technologies, a California-based company producing machinery and power generation technologies, Upwing Energy emerged in 2011 as it developed its Subsurface Compressor System (SCS). Over the next decade, Upwing developed, tested and trialed its SCS, leading to a funding initiative in 2018 from Equinor Technology Ventures and Cooper and Co. The initiative helped accelerate the development of the downhole gas compressor.
Simultaneously, Upwing developed its Enhanced Production Simulator, a tool that analyzes conventional and unconventional wells and calculates the incremental producible reserves based on specific parameters.
ESG and Technology
ESG and Technology
f you want answers to ESG in oil and gas, be prepared to join the search party. The answers are hard to decipher, mainly because ESG in oil and gas remains something far from a black-and-white issue with unquestioned solutions. Collectively, the work is being done; it’s just that there isn’t really one right way, one right measurement or one all-encompassing goal between all three prongs of ESG—as of yet.
“There’s a different answer between the E, the S and the G,” admits Sean O’Donnell, managing director with Quantum Energy Partners, one of the largest private equity investors in oil and gas. “Private equity has always had the ‘G’ figured out pretty well in terms of ownership, alignment and control. You’re seeing the conversation in the public market change to catching up on having ESG-oriented scorecards.”

he drive to capture every molecule of efficiency across every facet of an E&P operation has manifested in plenty of positive ways for oil and gas companies: stronger, faster return on capital investments, shorter development cycles, larger commodity margins, and the list goes on.
As heavily as E&P companies have focused on operational efficiency, there’s one area that may still offer opportunity for substantial efficiency gains: shutdown, turnaround and outage (STO). While companies have spent millions to improve and reinvent processes, there’s still room for them to optimize, accelerate and simplify STO. Some companies, as digitally mature as they may be in certain aspects of their operations, continue to manage STO organically rather than strategically, with a patchwork of sometimes ill-fitting point solutions that hamper their ability to optimize this critical area of their operation.

n November 2020, Abu Dhabi National Oil Co. (ADNOC) commenced gas production from its unconventional gas field—a milestone that helped the world’s third largest oil producer inch closer toward its gas self-sufficiency goal by 2030.
In an exclusive interview with E&P Plus, Mohamed R. Al Zaabi, senior vice president of unconventional and exploration with ADNOC, discussed the tremendous potential of unconventionals in the United Arab Emirates (UAE) and his company’s commitment to working with international partners to develop the UAE’s capital city, Abu Dhabi’s unconventional resources.

ver the second half of 2020, Henry Hub prices rallied from depths of pandemic lows, with the 12-month strip reaching the $3/MMBtu range for the first time since early 2019. But in Appalachia, the next two years will look very different from the last five, when consistent pipeline capacity additions facilitated average production growth of 3 Bcf/d annually. Now, with only one takeaway project under construction, subtler differences in midstream connectivity will drive which producers and gathering systems can access these higher prices outside the basin and which ones will be left to compete for limited in-region demand.
Machine Learning
Machine Learning
with human intelligence
eservoir characterization is the process of assessing reservoir properties and its condition, using the available data from different sources such as core samples, log data, seismic surveys (3D and 4D) and production data. This is done in different stages of the E&P process from high grading reservoirs in exploration to their delineation for their development, as well as their description for optimum production to assessing their evolution in their stimulation for enhanced oil/gas recovery to extend their economic life.
n recent years, formation evaluation and well placement accuracy have become increasingly important to operators seeking to get the greatest return on investment (ROI) possible from their wells targeting highly complex carbonate and clastic reservoirs. LWD solutions have played a significant role in helping operators achieve this, especially since the introduction of nuclear magnetic resonance (NMR) LWD solutions within the past 20 years.
n today’s oil and gas industry, ESG efforts are top of mind, and it has become vital for the sustainability of operations. Optimizing the utilization of personnel and keeping them safe is paramount while their focus on higher value items also helps drive efficiency. In addition, support staff in remote locations are being spread across multiple site locations, increasing the number of variables they need to keep track of to ensure operations continue without nonproductive time (NPT). To achieve financial cost targets, more work needs to be done with fewer man hours, though safety and performance are priority. The advent of new specialized Internet of Things (IoT) applications is assisting with this transformation.
Flowback Management
Flowback Management
roppant flowback continues to be a challenge for operators in the oil and gas industry. It has been well documented how proppant flowing out of the formation can damage downhole and surface equipment once the wells are put on production. It is also well understood that production pathways for oil and gas can be restricted as proppant shifts into the wellbore and fractures pinch off near the wellbore. This can result in reduced EUR and potential long-lasting well damage. Traditional proppant flowback solutions have been an added expense that operators have a hard time incorporating into their overall budget, especially in a low oil price environment.
or an oil and gas asset management company, maintaining and inspecting plant and associated equipment efficiently can often feel like a never-ending process. Whether it is contending with budget, time or bed space constraints, integrity teams are far too familiar with assessing, prioritizing and justifying their decision-making processes. In highly regulated locations such as the U.K. Continental Shelf, not taking the time to properly assess and understand an asset condition can be an exceptionally expensive gamble, which is why most operators pursue a risk-based inspection (RBI) methodology. But is this approach still fit for purpose in 2021?



Bahamas Petroleum encountered hydrocarbons at #1-Perseverance in the Cooper Block offshore the Bahamas. The well was drilled to approximately 3,900 m. It will be permanently plugged and abandoned. The exploration well had a planned depth of 4,800 m and was testing multiple potential reservoir horizons continuously through the Albian and Aptian aged formations, targeting P50 prospective oil resources of 770,000 bbl, with an upside of 1.44 Bbbl.
Petrobras completed a Campos Basin hydrocarbon discovery in Block C-M-411. The #1-BRSA-1377-RJS (Urissane) was drilled in approximately 2,950 m of water, and it encountered oil in the presalt section of the reservoirs. Additional testing in the area is planned to assess the potential of the discovery.
UK Oil & Gas has announced results from a report of the Loxley Portland gas discovery in PEDL234. The report indicates a a mean case, gross gas-in-place of 49 Bcf. According to the company, results further underline the estimate that the 48-sq-km Loxley geological structure contains significant gas volumes of about 4 Bcf to 5 Bcf per year on an energy equivalent basis. The company is planning to drill #1-Loxley in the second half of 2021.





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f only we could inoculate subsurface wells against future integrity or flow issues it would be a dream come true. But there are many ways to proactively diagnose and keep them healthy and immune from unexpected “disease.”
Never has health been more in the spotlight—the health of our communities and the health of our planet. The pandemic has elevated the world’s focus on the environment and on driving down carbon emissions.
The energy sector has come under intense scrutiny as the world strives to tackle climate change. A major challenge is striking the balance between the continued need for fossil fuels, as part of a wider energy portfolio, while offsetting the associated carbon emissions.
