Lakagigar - GEO ExPro

Transcription

vol .
11, no. 4 – 2014
GEOSCIENCE & TECHNOLOGY EXPLAINED
geoexpro.com
GEO Profile:
Dr. Robert E. Sheriff
GEO TOURISM
Photo Competition Winner
Lakagigar:
Catastrophe and
Climate Change
GEOPHYSICS
Reservoir Rocks Behaving Differently
EXPLORATION
Mongolia: Potential in an Emerging Economy
geology
g e o p h y s i c s reservoir management
Previous issues: www.geoexpro.com
PetroMatad
48
CONTENTS Vol. 11 No. 4
Oil shale outcrops in Mongolia
This edition of GEO ExPro Magazine focuses on
Asia and the FSU and Geophysics
features
22
Cover Story: GEO Tourism:
Lakagigar – Catastrophe and Climate Change
28Technology:
Technology Driving Unconventional Exploration
36
Seismic Foldout: Hoop Basin, Barents Sea
48Exploration:
Mongolia – Potential in an Emerging Economy
54Technology:
3D Seismic Data and Geohazard Analysis
58
Seismic Foldout:
Frontier Exploration in the Middle Caspian Basin
64Technology:
Three Disappointments in the Barents Sea
72
Geophysics: Reservoir Rocks Behaving
Differently
80
Seismic Foldout: Offshore Greece – Imaging the
Next Hydrocarbon Province
86Exploration:
Unveiling Oil Targets in Colombian Amazonia
94
Industry Issues:
The Fracking Debate in Europe
5 Editorial 6
Market Update
8Update
16
Licensing Opportunities
18
A Minute to Read
32
GEO Profile: Dr. Robert Sheriff – “Never Hold Back”
42
GEO Education: Fracture, Fracture Everywhere, Part 2
68
Recent Advances in Technology:
IsoMetrix – Isometric Sampling
78
What I Do: The Chief Explorer
90
History of Oil:
The PESGB Celebrates Its 50th Birthday
98
GEO Cities: Khanty Mansiysk –
Oil, Sport and Woolly Rhinos
100 Exploration Update
102 GEO Media: The Secret World of Oil
104 Q&A: Delighting in Geophysics
106 Hot Spot: Offshore Canning Basin, Australia
108 Global Resource Management
Using 3D seismic for
geohazard analysis
54
dGB
columns
36
22
98
90
18
18
94
16
58
48
80
32
6
100
14
16
86
16
100
12
101
106
www.polarcus.com
ARE YOU READY
FOR NEW HORIZONS?
We are.
With a wealth of operational experience and a passion for
geophysical excellence, Polarcus takes on the most
complex of 3D projects, delivering outstanding quality every
time. We give the highest priority to safe working practices that
combined with our commitment to minimize our environmental footprint, enables us to offer our clients an unrivalled
world-class service from Pole to Pole.
Editorial
© Lucidwaters/Dreamstime.com
A Disturbing World
We live in troubling times. After
the so-called ‘Arab Spring’ began in
December 2010 in Tunisia, unrest
spread westwards through Libya,
where the toppling of dictator
Muammar Ghaddafi has not stopped
the turbulence and bloodshed.
To the east, civil unrest in Egypt
culminated in the overthrow of two
governments and the reintroduction
of military rule, while further east again there are ongoing disturbances in Yemen and
Bahrain and ruling elites are getting rattled. Meanwhile, Syria has collapsed into full scale
civil war, and the very young and fragile democracy of Iraq looks increasingly unstable and
undemocratic as the fundamentalist fighters of ISIS spread their hold on the oil-rich regions
of northern Iraq and Kurdistan. To the north, Gaza and Israel continue their uneven trade
of shooting missiles at each other.
The Middle East and North African regions have been at the center of world energy
supplies for nearly a hundred years, accounting for over half of global proved reserves
and almost a third of production. The rest of the world looks on aghast and helpless at the
violence and horror, but also with concern over security of energy supply and the effect of
these upheavals on the oil market and ultimately the wider global economy. If ISIS forces
consolidate their hold in Iraq and Syria, they could control a large slice of the region’s
reserves; it is estimated that they are already adding about two million US dollars a day to
their coffers through selling oil from captured Iraqi fields on the black market.
Further north again, over 2,000 people have been killed in eastern Ukraine in a civil war
that is as much about wealth and power struggles between Europe, the US and Russia as it is
about territorialism in Eastern Europe. Sanctions on Russia have so far had little impact on
either the price or the flow of oil and gas from Russia, but if the situation continues, that is
likely to change.
Despite this, the search for hydrocarbons goes on, and technological improvements will
continue to unlock hitherto untouchable resources. Worries about energy security may indeed
push some of these developments forward, and without easy access to Russian supplies,
Europe may open up to shale gas; trouble and conflict always bring a gain to someone. But it is
still a very disturbing world, and all we can do is hope that peace will soon prevail.
VOL .
GEOSCIENC
E & TECHNOLOG
11, NO. 4 – 2014
Y EXPLAINED
geoexpro.com
Jane Whaley
GEO Profile:
Dr. Robert E.
Sheriff
Editor in Chief
GEO TOURISM
Photo Compet
ition Winner
Lakagigar:
Catastrophe an
d
Climate Chan
ge
LAKAGIGAR: Catastrophe and Climate Change
The eruption of the Laki Fissure in Iceland in 1783 caused this spepctacular 25
km-long row of craters – but also killed 10,000 Icelanders and had a disastrous
effect on the world’s climate.
inset: Geophysicist Dr. Robert (Bob) Sheriff is best known for his seminal work,
the Encyclopedic Dictionary of Exploration Geophysics.
GEOPHYSICS
Reservoir Roc
ks Behaving
Differently
Mongolia: Pot
ential in
GEOLOGY
GEOPHYS
ICS
EXPLOR ATIO
N
an Emerging
Economy
RESERVO
IR
MANAGEM
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Inset: Thomas Smith
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ENT
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GEOExPro September 2014 5
Market Update
Libya’s Missing Barrels
Libya turns on the taps – but for how long?
Caution Advised
BP Statistical Review of World Energy 2013
The Brent oil price continues to slide as Libyan oil is expected to gradually return to
the market after two key export terminals, which had been blocked for almost a year
by rebels, return to use.
Libya’s hydrocarbon production and exports have been substantially affected by
civil unrest over the past few years. In the wake of the civil war in 2011 resulting
in the fall of Col. Mu’ammar al-Qadhafi’s regime and the gradual consolidation of
control over most parts of the country, oil production collapsed, although around
85% of it resumed within a fairly short time in the autumn and early winter of 2012.
Protests at oil fields escalated in June 2013 and crippled the oil sector for a second
time since the Arab Spring, leading to a near-halt in production from the oil fields
linked to ports after most storage tanks became full. Libya produced around 1.4
MMbopd before the protests started, but blockades and strikes reduced the output
to a meager 150,000 bpd. Now production has increased somewhat to around
325,000 bpd, which is still only 23% of the post-2011 civil war production level. The
deal to reopen the terminals presents a major breakthrough as the export capacity is
expected to rise to 500,000 bpd, but it is still a long way from the pre-protests level.
Libya’s economy is heavily dependent on hydrocarbons. According to the Inter
national Monetary Fund (IMF), oil and natural gas accounted for nearly 96% of total
government revenue and 98% of export revenue in 2012. So obviously, the country’s
economy has been
4000
suffering severely
3500
from the lost income
Libyan Oil Production (Mbopd)
from oil exports.
3000
2500
2000
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Libya is a member of
1500
OPEC, so to ensure
1000
market stability,
the increase in the
500
country’s production
0
will be coordinated
with a cut in
production by other members that have been compensating for Libya’s missing barrels.
Libya has plenty of oil that can reach the market in the short term – around 7.4
MMb of crude oil in storage at Es Sider and Ras Lanuf ports alone. When the two
terminals reopen, these barrels would be ready for export, covering the period it takes
before production at the fields supplying the terminals is restarted. The market is now
starting to price in that these barrels would reach the market soon and this has pushed
down oil prices after the news about the reopening of the ports became known.
Libya now holds the largest amount of proved crude oil reserves in Africa, and is
an important contributor to the global supply of light, sweet (low sulfur) crude oil,
around 70% of which was exported to the European market. The loss of the Libyan
barrels has not been easy to replace as the world production capacity buffer, 80% of
which comes from Saudi Arabia, is of more sour grades. Thus, the European Brent
market is celebrating that more light crude will soon be flowing in the pipelines. With
the reopening of these two key ports in the east of Libya, the market is hoping that the
Sharara field in the west will soon resume production, returning the country to full
capacity. European oil stocks have been trading at a five-year low for most of the year.
But it is wise to be cautious as the political situation is still unstable. There is a risk
that this improvement will not last for very long if the political state of affairs in the
country does not improve. It will, however, provide a breather to the tight oil market
since the political risk has increased markedly with the unstable situation in Iraq.
Thina Margrethe Saltvedt, Ph.D., Nordea
6 GEOExPro
September 2014
ABBREVIATIONS
Numbers
(US and scientific community)
M: thousand = 1 x 103
MM: million = 1 x 106
B: billion = 1 x 109
T: trillion = 1 x 1012
Liquids
barrel = bbl = 159 litre
boe: barrels of oil equivalent
bopd: barrels (bbls) of oil per day
bcpd: bbls of condensate per day
bwpd: bbls of water per day
B
Gas
MMscfg: million ft3 gas
MMscmg: million m3 gas
Tcfg: trillion cubic feet of gas
B
B
a B
Ma:
Million years ago
LNG
Liquified Natural Gas (LNG) is natural
gas (primarily methane) cooled to a
temperature of approximately -260 oC.
B
NGL
Natural gas liquids (NGL) include
propane, butane, pentane, hexane
and heptane, but not methane and
ethane.
Reserves and resources
P1 reserves:
Quantity of hydrocarbons believed
recoverable with a 90% probability
P2 reserves:
Quantity of hydrocarbons believed
P3 reserves:
B
Quantity of hydrocarbons
believed
B
B
Oilfield glossary:
www.glossary.oilfield.slb.com
B
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New 2D Multi-Client Seismic and Induced Polarization
7425/9-U-1
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Legend
FH2D-14 Phase 1
FH2D-14 Phase 2
FH2D-14 Phase 1 and
Induced Polarization
FH2D-14 Phase 2 and
Induced Polarization
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coverage in the Barents Sea
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Spectrum has completed the second phase of acquisition for a
7228/07-01A
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regional broadband
2D Multi-Client seismic survey in the
V Barents Sea,
Fingerdjupet-Hoop area. A total of 5,300 km of data has been acquired.
This is a continuation of a 2,226 km survey acquired last year. Rock
property products for lithology and fluid prediction will be provided for the
entire survey to enhance prospect evaluation.
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(Salina)
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Additionally, Spectrum is collaborating with ORG Geophysical AS to
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acquire around 5,300 km of Induced Polarization measurements in the
same area. This combined product, focused on nominated blocks, will
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provide oil companies
with a unique dataset to evaluate prospectivity of
the Fingerdjupet-Hoop area ahead of the 23rd licensing round.
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8 GEOExPro
September 2014
Paleogene
Cenozoic
Alpine orogeny
Tertiary
23
65*
Jurassic
Caledonian orogeny
Phanerozoic
Permian
299
Carboniferous
Paleozoic
359*
Variscan orogeny
FORMATION OF PANGAEA
251*
Devonian
416
Silurian
Ordovician
443*
488
Cambrian
542
Neoproterozoic
The Great Unconformity
*The Big Five Extinction Events
Mesozoic
145
Triassic
Precambrian
Thomas Smith
1.8
199*
The Seismic Holy Grail
“At present, when there is so much at stake, the oil industry will have
to take a second look at the fundamentals of the current seismic
technology to determine if something basic has been missed or
some wrong assumptions have been made in the earlier stages of its
development that now require the necessary revisions, ” says Ms.
Khan. “To satisfy the current requirements of making new discoveries
and extracting larger reserves from the producing fields in more
cost effective ways, industry is faced with serious challenges to find
a way to map reservoir heterogeneities and its flow characteristics
with greater accuracy. Quite often, current seismic imaging efforts
fail to satisfy the production needs of mature reservoirs and end up
providing ambiguous results and solutions to production problems. In
spite of all the recent progress in seismic data acquisition and seismic
data processing, results can be non-unique and do not identify the
higher porosity and fractured zones that contain a significant portion
of the hydrocarbon reserves.”
Ms. Khan has taken that second look and may have found that
‘seismic holy grail’ by exploring beyond conventional assumptions
commonly used when acquiring and processing seismic data.
Acknowledging the significance of new frequencies generated by
reservoirs not present in the input signal may very well be that
direct link to the advancement in reservoir modeling the oil and gas
companies have long sought. (See related article on page 72.) Quaternary
Cretaceous
Pangaea breakup
Laramide orogeny
Norwegian-Greenland Sea starts opening
“We usually find oil in a new place with old ideas. Sometimes, we
find oil in an old place with a new idea, but we seldom find much oil
in an old place with an old idea.” Parke A. Dickey’s 1958 quote rings
as loud and clear today as it did 56 years ago. Unlocking the oil and
gas trapped in very tight formations, in areas that were considered
mature exploration plays, is a clear example. Yes, it took adapting
some new technologies and a lot of perseverance, but ultimately it was
a revolutionary idea that drove this major change in how and where
we drill for oil and gas.
Geophysical innovation plays an important role in both
exploration and exploitation of hydrocarbons, as pointed out by
Robert Peebler while chairman and CEO of ION Geophysical. He
recognized that “Geophysics arguably represents the single most
transformative technological link in the value creation chain for
oil and gas companies, if for no other reason than the fact that it
is typically where the value creation process begins. The point of
inception of almost every discovery or infill well can invariably be
found somewhere in a seismic data set.”
Yet, in spite of amazing advances in seismic innovation,
one mission has remained elusive, as Sofia Khan, president of
Nonlinear Seismic Imaging, Inc., points out. “Regardless of the
scale of operation, the quest remains the same – to directly detect
hydrocarbons beneath the earth’s surface. Realization of the need for
emerging technologies by major operators confirms my own belief
that there is no technology being used yet that can help us in directly
locating the hydrocarbon accumulations with any level of certainty.”
Central Atlantic starts opening
Gulf of Mexico rifting
North Sea rifting
Industry is faced with serious challenges
– it’s time to think innovatively
South Atlantic starts opening
Ideas and Innovation
Neogene
Update
The Fine Art of BroadSeis
Truly broadband data finely sampled in
all dimensions
Data courtesy of Lundin.
450-ms zoom on fractures
650-ms zoom on iceberg scours
20 m width
15 m width
20 m width
20 m width
450-ms zoom on channels
Inline
Glacier flushes
old fjords
300 m
width
75 m diameter
— 200 ms
Gas pockets
Sedimentary infill
— 400 ms
These timeslices and inline are from a North Sea data set acquired with BroadSeis streamers at 75 m and BroadSource source arrays at 37.5 m
separation. The survey was binned on a 6.25 x 9.375 m grid using intelligent 5D interpolation and regularization for use as a site survey.
BroadSeisTM with BroadSourceTM delivers ghost-free data
with over 6 octaves of signal bandwidth (2-200Hz) for
high-resolution images that can be used as a site survey
for shallow hazard identification.
BroadSource can be deployed in flip-flop mode, so
is compatible with 3D acquisition geometries. Use of
the downgoing ghost wavefield as well as the upgoing
primary increases spatial resolution and reduces the
acquisition footprint, so that very small features such as
channels, small gas pockets, fractures and iceberg scours
can be imaged, reducing development risk.
cgg.com/broadsource
Contact us to discuss the resolution achievable with
BroadSeis and BroadSource, or watch our narrated
presentation at cgg.com/broadsource
Update
Capital Discipline
A Shake-up for the Industry
Despite record levels of capital investment since 2005, oil production outside of North America
has virtually flat-lined and investors are losing confidence. How is the industry reacting?
Oil Prices Are Key
Most new production is reliant on a high
break-even oil price – between $70 and
$100, a 20% increase since just 2011.
During the same period the average Brent
price has actually dropped approximately
$5. Over the last 30 years, companies have
become used to an average cash return of
around 11% but levels are now below this,
forcing companies to consider whether
they can generate sufficient funds to
service existing dividend and investment
commitments.
In an economist’s ideal world, oil
prices should rise. However, they have
been remarkably stable over the last two
years, as US shale production has filled
some of the demand gap. Even if prices
do rise, companies face the conundrum
that a level much above $100 appears
to be counterproductive. There is a
limit to what even OECD consumers
can bear and, as the price spike of 2008
demonstrated, demand from marginal
consumers – those that have some
10 GEOExPro
September 2014
commitment to cutting costs. The major
buyers of physical assets appear to be
private equity, sovereign wealth funds and
the commodity houses that have been
moving beyond trading into investments
all along the supply chain.
degree of flexibility over how much they
consume – can pull back dramatically.
Not only do high oil prices suppress
individual demand but they also sap
economies, removing the ‘feel good’ factor
and capping growth, preventing any
possible lift-off in general consumption.
The result is that investors are looking
nervous. Even the best performing
majors – ExxonMobil and Chevron –
have seen their shares rise only 11% in
the period 2011–14, while the Standard
and Poor 500 index has risen 40%. Shell
has actually dropped 2%.
Adding to investor fears of poor
returns, a growing fossil fuel divestment
campaign has been gaining traction
and several new benchmarks have been
developed that specifically exclude oil
and mining companies. The concern is
that discoveries in the Arctic or ultradeep water may simply become stranded
assets with development either not
justified by the oil price or ruled out by
regulators and governments focused
on ‘unburnable carbon’. In April this
year BlackRock, the world’s biggest
fund manager, announced its own
collaboration with London’s FTSE group
and it is rumored that investors as large
as Norway’s Sovereign Wealth Fund are
considering divestment from the sector.
In response, the oil majors have created
a buyers’ market with a mass sell-off of
more than $300bn of assets, as well as a
Future Prospects
There is little consensus on what happens
next. If the shale boom peaks in the early
2020s, supply shortages could become
a more pressing reality with the world
increasingly dependent on Middle
Eastern oil. Whether prices will then rise
enough to allow more expensive, high
break-even point investment depends
on the extent to which economies have
recovered from the current slump – as
well as the alternatives developed in the
meantime. The IEA is predicting prices
$15/b higher than current levels by 2025
and annual investment of $850bn by the
2030s. However, 90% of oil investment
will simply be compensating for declines
in existing fields, keeping production at
current levels; similarly 70% of gas invest
ment will be maintaining the status quo.
Controlling costs is easier said
than done. Undoubtedly the world
will continue to need oil and gas, but
upstream companies are looking less than
comfortable. Inevitably they will continue
to face challenging questions from
investors for the foreseeable future.
Nikki Jones
Shares of primary energy
GDP and energy
Trillion $2012
Billion toe
220
44
50%
Oil
GDP
170
34
40%
30%
120
Coal
24
20%
70
14
Energy
(RHS)
20
BP Energy Outlook 2035
To say there is concern over the industry’s
rising capital expenditure is an under
statement. ‘Capital discipline’ is the
new in-phrase. The headline-grabbing
challenges of more difficult geology
and political disruptions have been
exacerbated by scarcities of experienced
and qualified staff, painful surges in key
exchange rates and several large-scale
blighted projects. Many would say the
underlying factor has been a level of
complacency among the major producers
fueled by the price surge of the mid-2000s.
The facts are that the costs of oil and
gas extraction have risen almost 11%
per year since 1999, reaching a highpoint of $700bn in 2013 and out-pacing
revenues by 2–3%. Rising capex has
not been matched by rising production.
Although there has been an increase
of 11.9 MMbpd since 2000, the bulk of
the capex increase has been post-2005,
a period in which conventional oil
production has almost flat-lined.
1965
2000
2035
4
10%
Gas
Hydro
Nuclear
0%
1965
2000
Renewables*
2035
*Includes biofuels
Energy is
gradually
decoupling
from
economic
growth.
Triton helps your exploration team:
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PGS is leveraging our full suite of proprietary model building tools, including our PGS
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Update
Indonesia:
New Regime Creates Expectations
What effect will the new modernizing president have on the oil and gas industry in Indonesia?
Indonesian presidential elections held on July 9, 2014 saw Joko
Widodo, leader of the Indonesian Democratic Party of Struggle,
declared the winner, starting his five-year term as leader of the
world’s third-largest democracy on October 20. The softlyspoken former furniture exporter is the country’s first president
to come from outside the political and military elite and as such
he will be like no other leader the country has had. In short, his
win signifies the maturity of democracy in Indonesia. Millions
are eager to see him deliver on promised reform but just how
the new administration sets about managing the country’s
energy needs, against slowing economic growth, infrastructural
deficiencies and a longstanding battle against corruption, will
be crucial. Risks from adverse climate conditions are high and
earthquakes, volcanic eruptions, landslides, and tsunamis have
the potential to severely damage energy infrastructure.
Election Promises
In his election campaign Widodo promised to pursue energy
policies that are oriented towards energy sovereignty and selfsufficiency, suggesting that the overall economic policy, as well
as energy strategy, will lean towards economic nationalism. He
also stated that revisions will be made to oil and gas regulation to
be in accordance with Article 33 of the Indonesian Constitution
to exert greater control over Indonesia’s energy sources. More
challenging is the proposal to reform the current energy subsidy
system, which is costing the government some US$ 30 billion a
year and is now reaching a critical condition. The subsidy exceeds
the combined expenditures on health, education, defense and
social protection, but its removal will be politically difficult to
accomplish and has in the past met with fierce resistance from
the masses and opportunistic opposition parties.
Widodo proposes a reallocation of the budget devoted to fuel
subsidies to other sectors, primarily natural gas infrastructure
development and exploitation, to lessen the burden on the
state budget and the country’s dependency on imported oil.
He has also proposed to formulate a strategic reserve to ensure
long-term energy security, enhance domestic oil production
and introduce new investment schemes to encourage investor
participation. Experience suggests that any attempt to cut
subsidies needs to be accompanied by a public-education
campaign and a clear timetable for gradual price increases;
it would be a mistake to expect too much too fast. For the
moment in Indonesia, there seems to be a chance to accelerate
reform. It is an opportunity not to be missed.
Opportunities, But Who For?
Prospectivity is not an issue; Indonesia has 22 currently
unexplored basins, 15 which have been drilled but no
hydrocarbons found yet and seven basins where hydrocarbons
have been found but have not yet been brought into production.
12 GEOExPro
September 2014
The opportunities are clearly there. The Indonesian Petroleum
Association (IPA) has forecast that exploration activity must be
three times the current level for Indonesia to see a significant
difference in its reserves and production. The IPA and others
have argued that with most of the reserves now located in
frontier and more difficult areas, investors would benefit from
a higher production split and a more streamlined regulatory
procedure. Consequently it has proposed that the government
give authority to one single body, the Energy Ministry, to
discuss the fiscal regime and production split with investors.
A growing number of politicians are keen to see domestic
firms develop a more significant role in the oil and gas sector.
Certainly, if there are moves towards economic nationalism,
national oil company Pertamina’s role should be expected to
grow, domestic market obligations will increase and new oil and
gas laws will likely favor domestic firms. Pertamina currently
lacks the capability to develop technically complex deepwater
projects and as such foreign investment will be needed; this
will require reasonable access and attractive incentives. But if
economic nationalists push policy in the direction of expanding
the national oil company’s role into technically complex areas,
international players will have limited opportunity.
Ken White
Joko Widodo will become Indonesian President in October 2014. His
election is widely seen as reflecting popular voter support for new, ‘clean’
leaders rather than the old, corrupt style of politics in Indonesia.
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Update
China Seeks More Gas
With its vast shale gas resources proving harder to access than
anticipated, China is looking to Russian gas to satisfy its rising demand
JANE WHALEY
China is believed to hold the world’s
these resources. Shell and Hess Corp
largest technically recoverable reserves
are the only foreign firms to have signed
of shale gas – a massive total of 1,115
production-sharing contracts to date.
Tcf, according to the US Energy
Information Agency (EIA). Compare
Deal with Russia
that to the next in the ‘league table’,
For many years China’s huge coal
Argentina, which can only boast 802
reserves have meant that demand
Tcfg. China had therefore hoped to
for natural gas has been traditionally
emulate the ‘shale gale’ of the United
low, but it has been increasing as the
States and had predicted that by 2020
government seeks to move to cleaner
it would be producing between 2 and 3
fuels. The EIA’s International Energy
Tcf of shale gas per year.
outlook has estimated that demand will
its imports from central Asia. But with
However, after several years of
increase from 5.2 Tcf in 2012 to 17.5 Tcf
tensions between Russia and the EU and
exploration and the drilling of a
by 2040.
the US increasing and the imposition of
number of wells, only one large field
As shale gas will take longer than
sanctions, a diversification of gas exports
has been found; Fuling in south-west
initially anticipated to come to the
from Europe to China became more
Sichuan, which is reported to have
market, China has turned to its
attractive to the Russians and a deal was
total proven reserves of about 74 Tcfg.
neighbor and largest trading partner,
struck. The contract links the natural
The operator, Sinopec, expects annual
Russia, to fill the gap. In May this year,
gas price to international crude oil prices
production from the field to reach about
Russia’s biggest gas company, Gazprom,
and operates as a take-or-pay scheme,
60 Bcfg by the end of this year and is
signed a deal to supply CNPC with gas
so CNPC must pay for the contracted
planning to produce 353 Bcfg a year by
from Eastern Siberia. Under the first
natural gas even if it decides not to
2017. But this will not be sufficient to
phase of the 30-year contract, Russia
receive it.
reach the country’s ambitious targets,
will supply China with 1.3 Tcfg a year,
As Eastern Siberia currently lacks
so the Chinese Ministry of Land
starting in 2018, and future phases
export infrastructure, GazProm is
and Resources has downgraded its
could increase this volume to as much
planning to build a pipeline to China
prediction for shale gas production in
as 2.1 Tcf annually.
which should be operational by 2020.
2020 to 1.06 Tcfg.
The two countries have actually been
This will also take East Siberian gas
The main issue for Chinese
in negotiation for many years, with the
to an LNG plant in Russia; as well as
exploration for shale gas, one it shares
price being the main obstacle. Russia
selling gas to China, Russia is hoping
with many other countries trying to
had wanted to use sales contracts in
that this deal will help it become a
access their unconventional resources,
the EU as a benchmark price, while
bigger player in the lucrative Asian LNG
is that the geology in the most
China proposed a lower price, based on
market.
prospective areas is very complex
Sources: U.S. Energy Information Administration, International Energy Outlook 2013, IHS Energy,
and challenging. The Sichuan
Eastern Bloc Research.
region, for example, is highly faulted
and also mountainous, making
Chinese natural gas supply mix (2012–40)
trillion cubic feet
exploration difficult and considerably
18
adding to costs. In addition, there
LNG imports and
16
is little incentive for international
3.1
3.8 other contracts
pipeline imports
companies to participate in shale
14
1.3
1.3 from Russia
gas exploration in the country. The
1.6
12
pipeline imports
2.3 from Turkmenistan
two main Chinese companies, China
10
National Petroleum Corporation
6.3
8
(CNPC) and Sinopec, hold the
6
10.1 domestic production
0.7
most prospective blocks, with those
0.7
4
offered to independent firms by the
3.8
2
Ministry being of poorer quality.
0
This also means that there is less
Additional China supply
RussiaChina supply Increased Turkmenistan
foreign expertise coming into the
2040
LNG & other
deal
China
2012
domestic
country to help the Chinese develop
contracts
gas deal
production
14 GEOExPro
September 2014
SeaBird Exploration
Marine Seismic Acquisition
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Geo Pacific
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Licensing Opportunities
Diverse and Difficult Environments
Feature Strongly
Hungary
The Ministry for National Development and the Hungarian Mining
Office launched a bid round for six hydrocarbon prospecting,
exploration and production concessions on May 9, 2014. Five of these
are located in eastern Hungary and one in the western part of the
country. Closing date for the submission of bids is October 1, 2014 and
hydrocarbon concessions will have a duration of 20 years from signing
of the contract. This can be extended once, without a further call for
tenders, for a maximum of half of its original duration and only as long
as the concession holder has complied with all the obligations agreed
in the contract. The winning bidder has 60 days (with an extension of
an additional 60 days) in which to negotiate the concession agreement,
after which it must establish a concession company in Hungary within
90 days in which it will have majority control.
Despite the industry having provided constructive feedback on the
2013 Bid Round, which received a muted response, it seems that the
fiscal terms and conditions have been carried over, so it is likely that
the success of the 2014 round will further depend on strong positives
emerging from the geological studies to be undertaken by potential
bidders.
While Hungary’s oil production looks set to continue its longterm decline, the domestic gas production outlook is more promising
thanks to improvements in unconventional gas recovery technology.
Equatorial Guinea
The 2014 Licensing round was opened by the Ministry of Mines,
Industry, and Energy on July 1, 2014. It comprises 10 blocks
(EG-11 to EG-20) that are offered for competitive bidding and
four other blocks for direct negotiation (EG-07 to EG-10). All
are located in highly prospective areas including the distal parts
of the Niger Delta Basin system, the Rio Muni Basin, and the
Douala Basin. From the four blocks open for direct negotiation:
EG-07 contains the Langosta gas condensate discovery; EG-08
is adjacent to Noble’s productive Alen field; EG-09 is south of
the producing Aseng oil and gas field; and EG-10 is adjacent
to GEPetrol’s Block P development area. The license round is
scheduled to close on September 30, 2014 and all companies
16 GEOExPro
September 2014
KEN WHITE
Philippines
The Fifth Licensing Round, PECR V, comprising 11 blocks
with a total area of more than 47,000 km2, was launched on
May 9, 2014. The deadline for applications is February 27,
2015. With the exception of Area 1 (onshore/offshore) and
Area 2 (onshore), the blocks are situated offshore, with four
in the West Luzon region, three in East Palawan, two in West
Masbate/IloIlo and one in each of the Southeast Luzon and
Recto Bank.
With China claiming virtually all of the South China Sea, a
likely flash point is Block 7 on the Recto Bank. The Philippines
Department of Energy, which is playing down the issue as in its
opinion the area lies within the country’s Exclusive Economic
Zone, claims the tract has a resource potential of 165 MMbo
and 3.5 Tcfg. The disputed Recto Bank (or Reed Bank as it is also
known) is estimated to have the potential for 5.4 Bbo and 55.1
Tcfg according to the US Energy Information Administration.
In an August 2012 report the IMF stated: “the Philippine
petroleum industry may have significant potential in the
disputed area of the South China Sea Basin, which is adjacent
to the Northwest Palawan Basin.” However, given the history of
territorial conflict and the subsequent under-exploration of this
basin, there is little as yet to substantiate this potential.
interested in bidding will have to pre-qualify, except for those
already active in Equatorial Guinea.
Corruption, oppression and mismanagement have not stopped
international investors from establishing a presence in the
country, which is believed to have good prospects for further
hydrocarbon discoveries. Oil production has been in decline
since 2005, due in part to the ageing of the Zafiro field but also
because of the lack of exploration. Foreign oil executives and
diplomats also blame mismanagement by GEPetrol, which failed
to bring in new companies to explore, but this changed after the
Ministry of Oil took over responsibility for granting licenses
from GEPetrol, rebuilding trust with foreign groups.
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A Minute to Read…
News from around the world
Magseis
Reducing Cost of OBS
During the last two years, the Norwegian geophysical
company Magseis ASA has successfully operated seabed
seismic surveys in the Barents and North Seas. The company
has developed a proprietary system designed to significantly
improve the efficiency of Ocean Bottom Seismic (OBS)
operations.
The OBS-system consists of autonomous sensors deployed
on the seabed and integrated in a steel cable, with a depth
range up to 3,000m and enough power to last up to 50 days
recording time. The flexible and robust system has ensured
successful deployment over seabed obstructions such as
anchor chains and subsea pipelines. On the Snøhvit and
Albatross fields, the vessel Artemis Athene operated safely in
rough Arctic seas with wave heights up to six meters.
The management and staff have extensive experience
within geology, geophysics and marine seismic operations. An
experienced team of technology developers has taken a huge
leap ahead of traditional thinking within OBS, developing the
ability to efficiently deploy large spreads, as well as expand the
power life of miniaturized autonomous nodes. Magseis’ vision
is to address the oil and gas industry’s need for improved
imaging solutions by reducing the cost of OBS to a level that
will enable widespread industry adoption.
The Southern Porcupine Basin, which lies off Ireland’s
south-west coast, is underexplored, but has shown clear
petroleum prospectivity and is an exciting frontier area.
In July Polarcus commenced a 4,400 km2 RIGHTBAND™
3D multi-client survey of the area, which will be the
largest-ever 3D multi-client survey offshore Ireland. The
multi-client project is being acquired in collaboration
with ION GeoVentures and GeoPartners and is supported
by industry prefunding from Providence Resources. The
survey will be undertaken by Polarcus Amani, one of
the largest vessels in the company’s fleet, which will tow
a 1,350m ultra-wide deep-tow spread comprising ten
8,000m solid streamers. The data will be processed by
ION GXT through a WiBand™ workflow to deliver a full
broadband deliverable to the industry. Final data products
will be available early in 2015 for companies seeking to
participate in the 2015 Irish Atlantic Margin Oil and Gas
Exploration Licensing Round.
Polarcus
Survey in Exciting Frontier
Mobilizing Polarcus Amani in Cork, southern Ireland: L to R: John O’Sullivan,
Technical Director, Providence Resources; Rear Admiral Mark Mellett, Defence
Forces Ireland; Peter Rigg, Chairman Polarcus; Pat Rabbitte T.D., Minister for
Communications, Energy and Natural Resources Ireland.
Prospectiuni Wins Award
For 60 years, Romanian geophysical and geological service
company, Prospectiuni, has been in partnership with the Faculty
of Geology and Geophysics of the University of Bucharest. An
important aspect of this relationship has been curriculum-based
fieldwork and training for university students, and 90% of current
geophysicists at Prospectiuni have attended them – often the
first contact many university students have with practical applied
geosciences. The hands-on training through field visits lays a
foundation for the geophysical methods taught at the faculty,
consolidates theoretical knowledge acquired in the university
and provides valuable practical knowledge.
18 GEOExPro
September 2014
This partnership was awarded the ‘Best Education/
Industry Partnership’ at the 7th annual Getenergy Awards
Ceremony, which took place on June 3rd at the Law Society in
London. Gehrig Schultz, CEO and Chairman of Prospectiuni,
believes that this long collaboration is a prime example of how
universities and organizations can work together to create a
stronger industry for everyone. Victor Mocanu, of the Faculty
of Geology and Geophysics, added that: “this partnership
not only develops future industry-defining geophysicists, but
also contributes to further developing our knowledge of the
natural resources potential in Romania”.
Full service marine geophysical company
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Delivering Powerful Solutions
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A Minute to Read…
News from around the world
In June Landmark Software and Services, a Halliburton
company, acquired Neftex Petroleum Consultants
Limited, a UK-based geoscience company specializing
in sequence stratigraphy-based products and consulting
for subsurface risk reduction. Its flagship product is the
Neftex Earth Model, which integrates millions of data
points to deliver a wide-ranging global overview of the
geological history and resource development of the Earth.
This consistent 4D digital model of the subsurface is driven
by a unique and proprietary global sequence stratigraphy
framework, which allows geoscientists for the first time to
use a single global platform to search, discover, analyze and
integrate geoscience data and interpretations.
Landmark believes that the integration of data and
interpretations from the Neftex Earth Model with
its DecisionSpace® platform will result in a digital
subsurface representation that is uniquely tied to one
Neftex
Landmark Acquires Neftex
stratigraphic model and delivered instantly for any region
in the world. This will in turn improve the ability of oil
companies to explore more prospects faster, and obtain
subsurface insight to better predict the probability of
drilling success.
Shale Oil Estimates Slashed
Jane Whaley
In a move that could have major implications for California,
the US Energy Information Administration (EIA)
has drastically reduced its estimate of recoverable oil in
California’s Miocene Monterey shale formation. In 2011 it
predicted that the formation held 13.7 Bbo, making it the
largest source of recoverable shale oil in the US, but in its
most recent estimate puts it at just 0.6 Bbo – a reduction of
over 95%. The volume was probably originally overestimated
because the calculation was made by applying production
scenarios from the more geologically straightforward Bakken
Shale to the complexly folded and faulted Monterey, and as
further analysis was undertaken, it became apparent that the
estimate was over-optimistic. The costs involved in fracking
the Monterey make much of the resource inaccessible at the
moment, although a number of companies holding acreage are
continuing to study ways of producing the oil.
Some Californians had hoped that the predicted bonanza
The Monterey shale play is the primary source rock for the conventional
oil reservoirs found in much of southern California.
20 GEOExPro
September 2014
from Monterey Shale oil would result in millions more jobs and
billions of dollars in tax, which would have alleviated some of
the problems that have beset the state’s economy in recent years.
However, the total oil in place for the Monterey Shale, which is a
bio-siliceous, organic-rich sediment, is 400 Bbo, so there is plenty
of potential there when the technology finally catches up.
Cover Story – Geo Tourism
Lakagigar
Catastrophe & Climate Change
Miguel Ángel Caja took the
wonderful cover photo, which
shows the 25 km-long row
of craters of Lakagigar, in
southern Iceland. Not only is
this a unique geological site
with a spectacular landscape, it
also tells a story of catastrophe
and climate change which still
resonates today.
Miguel Ángel Caja
JANE WHALEY
When the Laki Fissure opened on June 8, 1783, the hot, rising magma mixed with
groundwater and turned almost instantly to steam, causing explosions of water,
ash, gases and volcanic bombs. Over the next eight months 130 craters appeared
and, although it was less explosive, the lava continued to flow, filling a gorge nearly
400m deep and covering an area of 565 km2. About 90% of this magma erupted
in the first five months, half of it appearing in the 48 days after the first explosion,
flowing as quickly as 15–17 km/day, fast for a basaltic lava flow.
By the time the eruptions had finished in February 1984, about 15 km3 of
magma had been extruded, making it what is believed to be the most prolific
eruption recorded in historical times, although there are many events to rival it
in geological history.
Major Consequences
It is estimated that a fifth of the population of Iceland – 10,000 men, women and
children – died as a result of these eruptions, along with 82% of the country’s
From Laki volcano one can enjoy spectacular views of the more than 100 craters of Lakagigar, a 25 km-long fissure in the earth.
22 GEOExPro
September 2014
M
NASA/Bruce Winslade
sheep, 53% of its cattle and 77% of its horses. Some
people were caught up by the lava flow, or were
la
nt
ic
Rid
killed by ash falls or superheated gas pouring from
North American Plate
ge
the craters, but the majority of the deaths were a
Eurasian Plate
consequence of the vast quantities of toxic gases
which were thrown many kilometres into the
air. These contained an estimated 8 million tons
of hydrogen fluoride and 120 million tons of sulfur
dioxide, killing and poisoning vegetation and
leading to a three-year famine in Iceland.
But the effects were felt far beyond Iceland.
ne
ll
Vatnajöku
Zo
ft
These huge ash clouds and their associated ‘acid’
r
Ri
a
ig
rn
Reykjavik
n e ag
te
rain blanketed first Europe in a thick haze, and
Z o Lak
es
fi t
R
then spread via the jet stream across the whole
rn
<3.3 Ma volcanics
te
e
s
g
northern hemisphere; by early July they had
a
R id
c
i
Eyjafjallajökull
Active lift zone
nt
reportedly reached China. The summer of 1783 in
tla
50 km
-A
Focus of mantle plume
d
i
M
Europe was noted as unpleasantly hot (as it was in
Iceland, where malaria broke out) and possibly as
many as 23,000 people died in Britain from inhaling sulfur
And the consequences were felt even further afield, with
dioxide. This was followed by a very cold winter throughout
North America experiencing exceptional cold in 1784,
Europe, with severe flooding resulting from the eventual
when even the Mississippi froze in New Orleans. The raised
thaw, and this cycle of extreme weather conditions continued
temperatures of the sea relative to the land caused the
for several years, causing crop failures, poverty and famine.
monsoons to weaken in Asia and Africa. Possibly a million
It is suggested that repercussions from the climatic vagaries
people died of famine in Japan, while a sixth of Egypt’s
caused by Laki may even have helped trigger the French
population succumbed to famine or plague when the Nile did
Revolution and other social upheavals in the late 18th century.
not flood fully in 1784.
id
-A
E
W
N o r t h ern R if t
Zo n
e
t
GEOExPro
September 2014
23
Miguel Ángel Caja
Miguel Ángel Caja
A Visit to Lakagigar
Miguel Ángel Caja
Fagrifoss means beautiful waterfall in Icelandic.
Tjarnargígur is the only water-filled crater in the Lakagigar line of volcanos.
24 GEOExPro
September 2014
Despite its violent history and the catastrophic
consequences, Lakagigar is now a peaceful though
slightly eerie landscape of black lava and fuzzy green
Icelandic moss. It is a fragile environment, extremely
sensitive to intrusion, and is protected as part of the
Vatnajökul National Park.
Our photo competition winner Miguel and his
wife were lucky enough to visit this amazing location
during their trip to Iceland and have shared with us
their impressions of traveling around Lakagigar.
“Our first stop is Fagrifoss, a waterfall that drops
20m into a canyon. Seen from above, it seems as
though the walls are about to collapse and although
there is a cord designed to prevent you from
approaching the cliff (quite unusual in Iceland, where
they usually prefer free access), everyone goes to the
edge to look at the drop.
“The scenery is breathtaking – and this is just the
start of the route! “Although there is no sunshine, at least it does not
rain, and the clouds give an even more dramatic look
to the landscape, which is composed of black sand,
rock formations and striking moss so green that it
almost hurts your eyes.
“The track is slow, and needs a
4X4, with many stones, potholes,
hills and streams – but worth it, not
only for what awaits us at the end,
but as part of the experience itself.
We reach the edge of Eldhraun,
the lava field that extends from
Lakagigar, keeping to the black ash
path. All around us is a beautiful
carpet of green and squishy moss,
with small islands of black ash.
“Eventually, we arrive at the
foot of Laki volcano. We park the
car in the specified area and climb
the steep slope. It’s hard work but
the views from the top are well
worth the effort: a long line of
craters, getting smaller and smaller,
stretching to the horizon. We can
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Unique Volcanic Coincidence
Volcanos occur either along the boundaries of tectonic
plates or above ‘hot spots’ where magma reaches
unusually far upwards from the Earth’s mantle to its
crust – and Iceland is thought to be the only place in
the world where these conditions coincide, making it
exceptionally volcanically active.
Iceland lies on the Mid-Atlantic Ridge, the divergent
margin where the North American and Eurasian plates
are slowly pulling apart, and it is one of the few places
where this process can be studied above sea level. The
plates began separating about 60 million years ago and
continue to move apart at a rate of about 2.5 cm a year,
allowing magma to emerge at the surface. In addition,
a hot, narrow plume of molten material is thought to
rise closer to the surface than usual beneath Iceland,
although there is a certain amount of debate as to
whether this is a true hot spot, originating at depth, or
whether it has shallower origins, meaning that all the
volcanicity can be attributed to rifting, aided by locally
excessive melting.
Iceland is entirely a product of the magma welling up
from deep within the Earth The oldest rocks date from
the Neogene and are only about 20 million years old. The
country has 30 active systems, 13 of which have erupted
since men first inhabited it 1,140 years ago, and two
major rifting zones. It is also subject to other instances
of tectonic activity associated with plate margins, such as
earthquakes, hot springs and geysers.
Miguel Ángel Caja
eruption of Iceland’s Eyjafjallajökull had in 2010, it is salient to
see small trails surrounding the nearby craters with tiny
wonder how the modern world would cope with another event
figures walking on them. One can appreciate from here
like Laki, if – or more correctly, when – it should occur.
the vast size of the lava field and it is easy to imagine the
For a recent analysis of the story of Laki and its
destruction that resulted from the eruption.
implications, try Island On Fire by Alexandra Witze and Jeff
“We return to the car and drive to the crater of
Kanipe, 2013, published by Profile Books.
Tjarnargígur, to do a little hiking along an ash trail. The
crater walls, floor and everything else are
Another view from Laki volcano: the Varmárdalur valley covered with lava and volcanic ashes.
all mossy and we now fully understand how
fragile it is, and how easy it is to damage
it. We wander among the lava, admiring the
surreal environment around us, knowing
that nowhere else on Earth can you find
such a place.”
Looking to the Future?
GEOExPro 5th Anniversary Photo Competition Winner
Miguel Ángel Caja is a geoscientist
and researcher with over 15 years of
experience in the field of clastic and
carbonate diagenesis linked to reservoir
quality evolution. Based in Spain, he was
a teacher and researcher at the Madrid
Complutense University and Barcelona
University and is currently involved in the
coordination of the Geology lab research
activities at the Repsol Technology Center.
He says, “I have a special interest in
26 GEOExPro
September 2014
traveling around the world, especially
to outstanding geological places like
Iceland. I like any way of traveling, but I
believe that road trips are one of the best
ways to cover large areas and discover
nature’s treasures away from the most
touristic routes.”
You can read more about Miguel’s
travels in Iceland in the blog he wrote
with his wife at www.imawanderluster.
blogspot.com.
Ruth Guevara
The Laki Fissure Eruption is well
documented by people who experienced
it first hand, from local Pastor Jón
Steingrímsson, who kept a diary as the
lava threatened to engulf his church, to
naturalist Gilbert White in England and
Benjamin Franklin in Paris. As a result,
it is frequently studied and cited during
discussions on the potential repercussions
of climate change. Seeing the dramatic effect
which the ash fall from the much smaller
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Above, Below and Beyond
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Technology
Technology Driving
Unconventional Exploration
JOHN FIERSTIEN
The oil and gas industry is changing more and faster than ever. A historic shift is underway, as each
day brings new technology and techniques. We bring you a quick round-up of recent developments.
The history of unconventional shale
production is a short one, with the
first development of the Barnett only
in 2006. However, the technology that
has come together to make it happen
is quite old. The first true horizontal
oil well was drilled in 1939 in Morgan
County, Ohio (although there is some
debate that the first horizontal well
may have been drilled in 1929), and
the first commercially successful use
of hydraulic fracturing techniques
was in 1949. Despite the long history
of these technologies, the original
creators would hardly recognize them
today. The use of downhole motors and
multiple stages for hydraulic fracturing
have brought us a long way in terms of
accuracy, speed and usability.
The United States and Canada
are uniquely positioned to lead the
development of unconventional plays
because of the availability of equipment
and infrastructure. Beyond North
America, conventional reservoirs will
become increasingly more difficult
to drill in more hostile environments
and politically unstable regions. As a
result, the industry will be looking at
unconventional shales as one of the
more stable areas of development for
new oil and gas reserves. The quickest
areas to capitalize on unconventional
plays will be those which have a similar
infrastructure to the US or can quickly
develop and bring them to functionality.
As the globalization of unconven
tional plays moves forward, we can
expect advances in geophysics with
microseismic and other conventional
seismic techniques. Developments in
treating and completing horizontally
drilled wells are being made every
day, and soon this will translate into
standard practices.
Companies will also change as a
result of unconventional oil and gas
exploration, along with job titles and
responsibilities. The fields of geology,
geophysics and engineering will
merge into a more holistic discipline
as engineers begin to look at more
geophysical and geological data and
geologists and geophysics begin paying
closer attention to engineering data.
Digital Versus Paper
The world has gone digital and the oil
and gas industry is no exception. Over
the past 25 years, the industry has
been transformed, moving everything
digital. Seismic started the digital
revolution in oil and gas but the
original records were on paper and the
geophysicists of the day worked with
colored pencils marking the important
structural horizons. Even the allimportant map was a paper product
that took days to be hand drafted.
Drillinginfo
Density field interpretation of a multi-stage fracture job can be used to calculate fracture stage geobodies for thickness, area and volume to determine
the effectiveness of fracture jobs – one of the many ways in which advancing technology is facilitating the production of unconventional resources.
28 GEOExPro
September 2014
Seismic and Microseismic
Most seismic interpretation packages
on the market today are 20 to 30 years
old. They have become difficult to
maintain and will become harder to
enhance in the future. As a result, the
disciplines are beginning to merge.
Engineers are paying more attention
to microseismic, as it can, for example,
tell them where and where not to
fracture, as shown on the example on
the page opposite. Real time collection
and analysis will allow engineers to
make quick decisions that will save
money and increase production.
New seismic attributes are being
invented all the time that offer a better
and clearer picture into the earth’s
interior. Attributes often provide a
filter or lens that better visualize some
geological feature such as faulting,
stratigraphy, or reservoir fluids. The
trend of developing new attributes
will continue and systems will begin
generating them automatically,
providing users with a specific lens
that will allow them to interpret
information more clearly and precisely
than ever before.
Drillinginfo
Today, paper seismic along with the
drafted maps are all but gone, and most
companies get their log information
digitally as LAS information so that it
can be quickly analyzed and distributed.
WITSML (Wellsite Information
Transfer Standard Markup Language) is
also becoming a standard and virtually
any data that comes from a rig can now
be sent digitally.
New technology will make
conversion to digital easier and
more cost effective, which will make
searching for these treasures easier
and faster. Organizations with access
to the best digital data and searching
algorithms will have a distinct
advantage. This doesn’t mean just scout
tickets but will include paper logs,
core photos, production on paper and
a host of information that is currently
stored in log libraries and corporate
warehouses.
A quick look at the current drilling activity in the US provides a comprehensive overview of where
the activity is today.
and implementation has been restricted
to large wells or remote locations.
Today, with cost effective cell and radio
technology and high level compression
techniques, we are finally starting to see
higher adoption of this technology.
In addition, the ability to monitor
production and tank levels and remotely
control valves and other equipment
is promising to make wells more
productive and efficient. It also equips
operators with the tools needed to
quickly react to problems that will
make operations safer and reduce
environmental impact.
Bluetick, Honeywell and other
companies are currently producing
automated systems that control
wellhead operations remotely. These
types of systems will increase in usage
as the industry drills with closer
spacing and continues to have problems
replacing older workers who will be
retiring in the next few years.
Merger of Data and Analysis
Data from every facet of the oil and
gas industry is being collected at
ever increasing rates, and companies
are making significant investments
in managing the vast amounts and
extreme variability of data types.
Unconventional wells are also
increasing demand for more efficient
methods of managing and analyzing
big data, as they are more complicated
and expensive than they were for
previous generations of conventional
90 day permit activity or other ‘heat maps’ layered with well completions having fracture detail can
further qualify active areas needing detailed analysis.
The Digital Oil Field
Drillinginfo
There has been much discussion over
the past ten years regarding the digital
oil field. To date, the cost has been high
GEOExPro
September 2014
29
Technology
Drillinginfo
drillers. As a result,
organizations of all sizes
are now taking advantage
of big data in an effort
to maximize company
resources such as time,
capital and talent. Highperformance analytics
hold the promise of
synthetizing complex
big data into more
manageable results that
support better decisions.
The combination of
increased data availability
and advanced analytics
has leveled the playing
field between large and
small companies by
allowing them to focus
on the problem of finding
3D wellbore planning is enhanced with the generation of seismic attribute volumes and fault probabilities in FaultScan™.
and producing oil and gas
consultants and colleagues across the
gas industry. The insights gained from
– not moving data from one system to
internet – will change how and with
new technology and techniques will
another.
whom we work. We’ll soon have the
enable more effective decision-making
Predictive analytics are becoming
ability to communicate using words,
– and deliver unprecedented results. It
better each year. We have always
voice and video with anyone working
will also lead to new opportunities for
had systems that help predict where
on the same project – whether they are
exploration and production, bolstering
hydrocarbons are, where the water is,
in the next office or on the other side
economies and revolutionizing our
where the fault is and so forth – those
of the world. These collaborative tools
energy future.
continue to get better. In the past few
will be integrated into the technology
years we have also seen szystems that
John Fierstien is vice president of product
we are currently using, making it
will predict when you might have
management at Drillinginfo, a SaaS and
possible to not only find answers using
drilling problems, by learning from
data analytics company that enhances
our own ideas but also ideas from a
past events on other wells and then
strategic decision-making by equipping the
range of experts across the globe.
predicting the future – saving operators
oil and gas industry with cloud-based tools
and services.
It’s an exciting time for the oil and
millions of dollars in drilling costs.
Prescriptive analytics are really new
It is now possible
to the industry but will begin showing
to predict
up in end user applications. These will
production
be systems that help maximize your
sweetspots
from recent
return on investment. For example,
production using
when given certain shale characteristics
any combination
from microseismic and other
of geological
parameters, companies will be able to
and engineering
parameters,
determine what is the most effective
including
and efficient way to complete a well.
One of the most impactful things we
will be seeing over the next few years is
the use of collaboration tools. We can
currently share files and data across
a single database but we have not
been able to share thoughts, ideas and
words without the use of an external
system such as e-mail or a presentation
manager. Collaboration – not just
within a company but with partners,
30 GEOExPro
September 2014
Drillinginfo
Collaboration Tools
reservoir
thickness, mass
proppant and
horizontal well
length.
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GEO Profile
Never
Hold
Back
Dr. Robert E. Sheriff learned
early in his career “to never
withhold information
or ideas for later use,”
leaving a lasting legacy to
his family, the geophysics
community, and our
society.
THOMAS SMITH
Possibly best known for the
Encyclopedic Dictionary of Exploration
Geophysics, first published in 1973, Bob
Sheriff’s accomplishments go literally
to the ends of the earth – from his
family’s travels to his contributions to
geophysics and education.
Now in its fourth edition, the
encyclopedic dictionary has remained
one of the Society of Exploration
Geophysics’ (SEG) best sellers. It is a
valuable and comprehensive reference
that is a must to just about anyone in
the oil and gas business. This alone
would have been a bequest that would
have assured Bob’s place in the upper
echelon of the science. However,
his contributions to geophysics and
seismology, teaching at the University of
Houston and short courses around the
world, writing text books and articles,
have all made Dr. Sheriff a household
name to both students and professionals
in geophysics. Adding to this, the Sheriff
Scholarships for the SEG Foundation
that finances foreign graduate students
at the University of Houston, as well as
Robert Sheriff Collection
Robert Sheriff sharing his expertise in seismic stratigraphy.
32 GEOExPro
September 2014
endowed Chairs and Professorships at
the University, proves his influence is
truly global.
Getting Started
After graduating with degrees in physics
and chemistry, young Bob Sheriff entered
graduate school at Ohio State to study
physics. The year was 1943 when the
US was deeply involved in World War
II. Bob was soon to be out of university
deferments necessary to stay in school
so he interviewed with The Manhattan
Project at Oak Ridge, Tennessee, where he
landed a job. “The pilot plant was manned
by a bunch of physics graduate students
from all over the country,” says Bob. “We
talked freely among ourselves… [making]
my Oak Ridge experience magnificent as
we taught each other.”
Working at Oak Ridge also brought
Bob another life-changing experience.
A sister of a pilot plant colleague
joined The Manhattan Project team
as a chemist. Bob was introduced to
the new employee and they “hit it off
beautifully”. Bob and Margaret, the
Becoming a Wandering ‘Geo’physicist
“I knew nothing about geophysics [when
accepting Chevron’s job offer],” says
Bob. “Dr. Allen Reilly, the manager of
the La Habra facility, was just starting
geophysics research. He told me it was
easier to teach geology to a physicist
than physics to a geologist. This is how I
became a geophysicist.” Bob joined SEG
at that time “to get their magazine and
learn geophysics” and has been an active
member ever since.
During his early days at Chevron,
Bob was eager to learn all he could
about geophysics, including how things
were done in the field. This would
lead to the start of a yearning to see
the world. After a year and a half of
assigned projects at La Habra, he was
transferred to New Orleans where he
worked with a geophysicist who was on
Chevron’s research committee. They
traveled to geophysical operations all
over the country. “I got to meet lots
of important people and see lots of
situations,” recalls Bob.
After transferring back to California,
Bob began supervising seismic work in
foreign locations, mainly Latin America
and the Caribbean, and he spent a
considerable amount of time visiting
these locations. He was then transferred
to Port of Spain, Trinidad. At that time,
Margret was pregnant with their sixth
chemist, were soon married in 1945.
The couple stayed at Oak Ridge until
the spring of 1946 before returning
to Ohio State University to complete
graduate studies. Bob was able to teach
physics classes while in graduate school
until he received a scholarship from the
National Science Foundation. Margaret
worked on a geology degree.
While still a student, Bob
interviewed with Chevron and
received an offer for a job at their La
Habra facility (a technical center that
operated from 1948 until it was closed
in 1999) in Orange County, California.
Anne, their first of six children, arrived
in 1950 and they made their move to
“the mountains and a sea shore” as
Margaret put it. Being from Kansas,
California had quite the appeal and
she thought they were “set for life”.
Little did she know where their future
adventures would bring them…
Bob and Margaret traveled the world throughout his career. They are pictured here in Turkey in 1989.
child. Bob came back for the birth and
when number six, Linda, was nine weeks
old, Margaret and the family made the
move to Trinidad. Two years later, they
all moved on to Perth, Australia.
“I had always liked teaching, which
was really my first love.”
The transfer to Australia came with
an added benefit for the Sheriff family –
a six-week vacation plus a week of travel
time. “Between company geophysics
courses and visiting our offices along
the way, I managed to stretch our
vacations to three months,” says Bob.
Consequently they were able to plan
some very extensive trips to all corners
of the world.
After over five years there, Bob
requested a transfer back to the United
States. “Our children knew a lot about
the rest of the world but little about the
US, so we figured it was time to move
back,” Bob recalls.
The ‘Glossary’ is Born
While their time in Australia was filled
with traveling adventures, Bob still had
a job to do, which included training and
familiarizing personnel with new terms
and concepts in geophysics. To fill this
need, he created a 30-page pamphlet
describing various geophysical terms in
an industry that was evolving quickly.
Bob also used it as a recruiting tool
when visiting Australian universities.
The glossary was distributed to other
companies that were part of the
Australian joint operation. One of those
companies was Shell, which distributed
it throughout their organization.
The Sheriff family returned to the
States in 1966 and settled again in New
Orleans. By then, one of the past SEG
presidents had received a copy of the
geophysical glossary that Shell had
distributed and recommended it to the
SEG membership. “I was asked to update
and expand the glossary,” says Bob, “but
I was concerned about Chevron releasing
this update. Well, the current president
of SEG was Neal Smith, also a Chevron
employee, who thought ‘releasing it to
SEG would be good for the company’.
I reported this to my manager and it
was first published as one of the issues
of Geophysics magazine.” Bob received
the Kauffman Gold Medal, which is
awarded for outstanding contributions
to the advancement of the science
of geophysical exploration. The little
30-page glossary had by then grown
to 429 pages in its 4th edition as the
Encyclopedic Dictionary of Applied
Geophysics.
A Second Career
While in New Orleans, Bob was
contacted by his old boss, Lloyd
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September 2014
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GEO Profile
34 GEOExPro
September 2014
University of Houston. It is wonderful to
give deserving students the opportunity
to advance their education. It is one of
the things I have been very proud of.”
Bob quit teaching in 2006 but his
manner of teaching lives on through
the people he touched along the way.
Hua-Wei Zhou came to the University
of Houston in 1989 partly because
of Bob’s influence on exploration
geophysics. He had this to say about Bob
Sheriff: “…a giant figure in the world of
exploration geophysics… When I think
about Bob, a number of key words pop
up in my mind: kindness, honesty, hardworking, seeking perfection, generosity
and wisdom.”
Wouldn’t everyone want such a
legacy?
Special thanks to Barbara Barnes and
Anne Sheriff Makowski for making this
profile possible.
Postscript
While researching for this profile about Robert Sheriff, I felt I got to know
him rather well. That was until I received a call from Bob’s oldest daughter,
Anne Sheriff Makowski. She related to me some of her memories of their
travels and of her dad at work. Whether it was climbing the great pyramids of
Giza or a birthday for the youngest in Paris; joining their father when visiting
field crews in Australia’s outback; or attending his evening lectures about
foreign lands and cultures – discovery and adventure were their norm while
growing up.
I would love to relate all the stories Anne shared with me; however, one
of her first stories illuminated the driving force behind the man. While still
stationed in Trinidad, Bob traveled to Ecuador and heard about a mysterious
ancient city that was discovered in the mountains of Peru. At that time, it was
very difficult to travel to this part of South America and there were also strict
company rules against such adventures, but Bob had to see it for himself. The
place was Machu Picchu and, as Anne pointed out to me, it was clear very early
in his career that he would ‘leave no rock unturned’. His yearning to explore
and learn about the world, how things worked, and how to put all the pieces
together certainly ensured a very successful and productive career.
The entire family adventured together to see and learn about the cultures and world around
us. Pictured in Japan in 1965 are (back row from left to right) Margaret, Jeanne, Anne, Rick,
and Bob; (front row from left to right) Barbara, Susan, and Linda.
Geldart, from La Habra, California,
who was teaching at McGill University
in Montreal. Bob was asked to review
the chapter on seismic work for a
revised geophysics book series by
Eve and Keys. “I told Geldart that the
chapter was not acceptable because
it did not describe geophysics as it is
done today,” says Bob. “Consequently,
I joined a group of authors and wrote
the new seismic chapter for the book.”
This would be the start of Bob joining
the academic ranks and writing more
geophysical text books.
Bob was transferred to Houston
in 1970, retiring from Chevron after
25 years of employment, and went to
work with Seiscom Delta. While at
Chevron in Houston, he had joined the
University of Houston as an adjunct
geophysics professor for four years,
and continued teaching for another
five years during his employment
with Seiscom Delta. In 1980, the very
respected geophysicist, Milton Dobrin,
who had developed the university’s
geophysics program, died suddenly
while jogging in the early morning
hours in Houston. That is when Bob
began his second career in earnest,
becoming a full tenured professor.
Bob not only taught at the
University, but also spent a lot of
time teaching short courses for the
American Association of Petroleum
Geologists (AAPG) on a number
of different subjects. One he is
particularly proud of was Seismic
Stratigraphy. He had written a paper
on the subject, and subsequently a
book, and was invited to help teach the
course in 1975. He brought this new
concept to many skeptical geologists
and geophysicists. The project turned
out to be a success and was repeated
for several years, eventually expanding
to four courses a year.
Bob taught other courses for different
sponsors, especially overseas. “To
provide time to teach these courses plus
some sightseeing, I often took halftime positions at the university,” recalls
Bob. “People were eager to have me
teach them and I ran across many good
students. That is when Margaret and I
endowed the Sheriff Scholarships of the
SEG Foundation. It finances two foreign
graduate students every year at the
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Hoop Basin:
Drilling success and playground
for new exploration methods
36 GEOExPro
September 2014
11°0'0"E
The Hoop Fault Complex area of the Barents Sea has seen great exploration
success lately. The area offers a condensed Paleozoic and Mesozoic succession
with multiple-interval exploration targets in well-defined structural traps. In
particular, the Jurassic succession in shallow fault blocks has been successful,
with several light oil discoveries in good reservoirs. The Hoop Fault Complex is
now one of the core areas for the Norwegian 23rd licensing round.
P-Cable data across 23rd license round blocks.
13°0'0"E
15°0'0"E
17°0'0"E
19°0'0"E
21°0'0"E
23°0'0"E
25°0'0"E
27°0'0"E
29°0'0"E
31°0'0"E
33°0'0"E
35°0'0"E
37°0'0"E
39°0'0"E
41°0'0"E
75°0'0"N
74°0'0"N
Apollo
74°0'0"N
40°0'0"E
73°0'0"N
12°0'0"E
73°0'0"N
39°0'0"E
72°0'0"N
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38°0'0"E
71°0'0"N
71°0'0"N
70°0'0"N
rd
23 round blocks
Production licenses
TGS 3D coverage
Approx. location of P-Cable line
70°0'0"N
Wisting
Hanssen
Mercury
15°0'0"E
17°0'0"E
19°0'0"E
21°0'0"E
23°0'0"E
25°0'0"E
27°0'0"E
29°0'0"E
31°0'0"E 32°0'0"E 33°0'0"E 34°0'0"E 35°0'0"E 36°0'0"E
Location of TGS data in the Barents Sea,
highlighting the approximate location of
the foldout line in the Hoop Graben.
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38
BENT KJØLHAMAR, CHRISTOPHER SÆBØ SERCK,
CAMILLA BROCH PEDERSEN, REIDUN MYKLEBUST, TGS
The Hoop Fault Complex has been a focus area for several
exploration companies since 2009 when the first 3D
seismic data set covering the area was acquired by TGS.
Five exploration wells have been drilled, resulting in
two light oil discoveries in good Jurassic reservoir rocks.
The relatively shallow exploration targets make the area
suitable for geophysical methods other than ‘normal’ 2D
and 3D seismic data. Industry demands higher resolution
data, so the large Hoop Fault Complex data set has been
reprocessed using broadband processing techniques and
P-Cable 2D and 3D seismic is being acquired.
Structural Geology
The Hoop Fault Complex has experienced several episodes
of faulting. Deep in the section faults cut Carboniferous
and possibly older strata, while the Triassic, Jurassic and
Cretaceous successions are offset by a younger series of
faults trending north-north-east to south-south-west.
These faults and successions make up the characteristic
Hoop Graben. Overprinting these episodes of faulting, the
Upper Triassic to the onset of the Cretaceous section has
also been affected by a late east-west trending fault system.
These are important for the definition of fault-bounded
structural closures in the Jurassic section, which have been
targeted in the successful Wisting Central and Hanssen
wells. The different structural styles seen in the Hoop Fault
Complex can have major implications for the migration and
re-migration of hydrocarbons into the shallow structures.
Potential Reservoir Rocks
Post-Eocene erosion has removed
a lot of Cretaceous and possibly
younger strata from the Hoop Fault
Complex area, with implications
for hydrocarbon exploration, as it
has made older strata more easily
accessible.
In certain areas the Permian and
possibly the Carboniferous section
are shallow enough to be considered
exploration targets. Carbonate
buildups are possible reservoirs in
this section. Carbonate rocks that
have experienced subaerial exposure
might have developed good secondary
porosity. With Lundin’s exploration
success on the Gohta prospect further
south in the Barents Sea in mind, this
is something that should be explored.
The integration of
several data sets will be
essential for hydrocarbon
exploration in the Hoop
Fault Complex area of
the Barents Sea.
The most prominent sedimentary features in the Hoop
Fault Complex area are the deltaic deposits of the Triassic,
which can be seen as large-scale north-west prograding
clinoform packages, thinning north-westwards. The most
westerly position of the paleo-coastline appears to be in
the Hoop Fault Complex area for the Klappmyss, Kobbe
and Snadd Formations. Statoil’s Atlantis well, which tested
the Triassic section in a large closure adjacent to the Hoop
Graben, was not successful; the main target was the Middle
Triassic Kobbe Formation, but the result was a small
gas discovery in thin Upper Triassic sands. An excellent
oil-prone marine source rock in the Steinkobbe Member
of the Kobbe Formation of the Middle Triassic has been
confirmed by Sintef IKU’s shallow stratigraphic boreholes
near the Svalis dome. Large deltaic channel systems of
the Upper Triassic Snadd Formation can be seen as bright
amplitude anomalies on seismic data. More exploration
effort and the use of higher resolution data is needed to
thoroughly explore the Triassic section in this area.
So far the Jurassic succession has been the most
successful for hydrocarbon exploration. The Upper Jurassic
Hekkingen Formation source rock is believed to be mature
along the flanks of the basins adjacent to the Hoop Fault
Complex. Excellent reservoirs have been confirmed, and
oil has been proven in two recent wells, Wisting Central
and Hanssen, with oil in Jurassic fault blocks approximately
500 to 800m below the seabed. Both discoveries were
supported by bright amplitude anomalies, flat spots and
Interpreted seismic line across the Hoop Graben. Horizons: Blue = Top Jurassic, Purple = Mid
Triassic, Red = Top Permian.
NW
SE
GEOExPro
September 2014
39
distinct anomalies on CSEM data. Another recent well, Apollo,
targeted a Jurassic fault block, but there were no flat spots
or positive CSEM anomalies; the well was dry. The recent
Mercury well tested Jurassic reservoirs in a CSEM-supported
fault block closure, but only a small gas discovery was made.
Many structures supported by flat spots, amplitude and CSEM
anomalies can be found in the 23rd licensing round blocks and
elsewhere in the Hoop Fault Complex area.
In the Hoop Graben and the Fingerdjupet sub-basin
further west, varying thicknesses of the Lower Cretaceous
succession have been preserved. The Cretaceous section can
be seen as large clinoforms resulting from south-south-east
coastal progradation events. Erosion products from footwall
uplift along major faults can be deposited in the basin as
good reservoir rocks.
Hoop and Geophysical Methods
Increased interest from the industry and recent exploration
success has made the Hoop Fault Complex area an area for
acquisition of many kinds of geophysical data. Since the first
acquisition in 2009, more 3D data has been acquired each year,
and the TGS multi-client 3D coverage is now over 20,000 km²
and spans from the Stappen High in the west to past the Hoop
Graben in the east. Shallow discoveries and similar leads in the
Jurassic section call for a better resolution in the seismic data,
and by using the TGS Clari-Fi™ processing technique, the 3D
data has been de-ghosted and the frequency range of the upper
part of the seismic section has nearly been doubled.
TGS is currently acquiring P-Cable 2D and 3D data in
collaboration with WGP-Survey. Acquired using 16 streamers
with 12.5m streamer separation, the data is extremely high
resolution. The P-Cable data sets have frequencies up to 250
Hz, and provide an excellent image of the reservoirs, fluid
contacts and migration paths for the Jurassic section.
There are many examples showing that CSEM is a
valuable geophysical method in the Hoop Fault Complex
area. Both the Wisting Central and Hanssen discoveries
were supported by positive CSEM anomalies, as was the
small gas discovery in the Mercury prospect. TGS and
EMGS have jointly acquired CSEM data in the area. While
CSEM anomalies are not all equally easy to understand,
many structures with anomalies similar to Wisting Central
and Hanssen can be applied for in the 23rd licensing round.
TGS and Volcanic Basin Petroleum Research AS are
currently conducting seafloor sampling in the Hoop area. The
aim of the survey is to characterize the fluid phase (oil vs. gas)
of potentially charged structures. The recovered samples will
follow a comprehensive analytical program, including standard
seep studies (APT), amplified geochemical imaging (AGI),
micro-biological investigations (MicroPro) and biostratigraphy
(APT). The results can provide a new insight into the subsurface
geology and petroleum systems of the area. The sampling
locations are selected based on the re-processed Hoop Fault
Complex 3D data set as well as P-Cable data.
Integration of Data Sets
Integration of different geophysical and geological data sets
is essential for efficient exploration in the Hoop area. It is a
40 GEOExPro
September 2014
HANSSEN
Co-display of seismic and CSEM data. The Hanssen oil discovery can be
seen on the right. CSEM data courtesy of EMGS.
complex region and one data set alone will not provide all the
answers. TGS offers a turn-key suite of products for exploration
in this highly prospective area, from micro- to macro-scale.
Long offset 2D and the 20,000 km² of broadband processed 3D
enables TGS’ clients to understand the regional geology, map
all structural closures, and examine sediments ranging in age
from Carboniferous or older to Quaternary. It will also give the
opportunity to perform AVO studies on the many leads and
prospects. The shallow Jurassic leads can be examined in the
greatest detail using P-Cable 2D and 3D data, and CSEM will
help understand the presence and saturation of hydrocarbons
in the structures. Further de-risking of prospects can be
done by examining the results from the seafloor sampling,
as the transects cover many of the most relevant structures
in the 23rd licensing round blocks and can give important
information on fluid phase in charged structures.
For more information, visit TGS.com
Comparison between different Hoop data sets – conventional
processing, Clari-Fi 2ms Hi-Res reprocessing and P-Cable data.
HFC - Original processing
HFC - Clari-Fi reprocessing
HFC - P-Cable
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GEO Education
Fracture,
Fracture
Everywhere
Part II
How and why do fractures
occur in rocks?
RASOUL SORKHABI, Ph.D.
Fractures including joints and faults are commonly found in
rocks and are important fluid pathways – hence their significance
for petroleum, groundwater, and geothermal resources as well
as hydrothermal circulations within Earth’s deep crust. In the
first part of this article (GEO ExPro, Vol. 11, No. 3), we looked
at the types, geometry and characteristics of rock fractures. In
this concluding part, we will discuss the origin and mechanics of
fractures to better understand their occurrence.
The Origin of Rock Fractures
Rock fractures, like other geologic structures, form by
gravitational force involving pressure and density changes.
These take place due to a variety of tectonic, thermal or fluid
pressure processes operating on rocks. Based on their origin,
rock fractures may be categorized as:
1. Tectonic fractures: clusters of joints found in the vicinity
of major faults and folds represent brittle deformation in
rocks due to tectonic stresses. Motion of global tectonic
plates is the major cause of tectonic stresses, especially at
plate boundaries.
2. Hydraulic fractures: formed by increased pore fluid
pressure in a rock body. This process may occur naturally
in the subsurface, in the so-called overpressure zones due
to rapid sedimentation rates, thrust loading of rock over
sediments, thermal expansion of pore fluid, dewatering
of hydrous minerals (like illite, gypsum and opal), or
transformation of kerogen to hydrocarbon (which results
in volume increase). Artificial hydraulic fracturing, as in
the stimulation of shale gas, is done by pumping fluids
and proppants into the subsurface formation.
3. Unloading or pressure-release joints: formed in rocks
which are brought to the surface by uplift and erosion,
and therefore the rock cools, shrinks and fractures.
4. Exfoliation joints: typically formed in eroded granite
bodies in which sets of surface-parallel, curved fractures
split the rock dome into onion-like layers or slabs.
Hylgeria, Wikipedia
Exfoliation joints on the granitic Half Dome, Yosemite National Park, California.
42 GEOExPro
September 2014
Pressure-release due to the removal of overburden
(vertical stress) coupled with some degree of horizontal
stress play important roles in this type of jointing.
5. Cooling or columnar joints in volcanic rocks: these are
produced from the rapid cooling and shrinking of lava as
it ascends to earth’s surface.
Fracture Modes
Stress: Principal, Normal and Shear
Stress (σ) and pressure (P) are both defined as force (F) per
unit area (A), and have the unit of pascal. One pascal (Pa)
is one newton per square meter (or 1 kg cm-1 s-2); 100,000
pascal is equal to one bar or 0.98 atmospheres of pressure; one
megapascal (MPa or 106 Pa) equals 10 bars and one gigapascal
(GPa or 109 Pa) equals 10 kilobars. One bar is 14.503 pounds
per square inch (psi) and one psi is 6895 Pa.
Stress differs from pressure in that it also includes a sense
of directionality (vertical or horizontal); in other words,
stress is a vector quantity while pressure is a scalar quantity.
Pressure (P) at a given depth is given ρgz where ρ is density of
the material (rock or fluid), g is gravitational acceleration (9.8
m/s2) and z is the target depth.
In his 1942 book The Dynamics of Faulting and Dyke
Formation with Application to Britain, the Scottish geologist
Ernest Masson Anderson (1877–1960) formulated the stress field
of a three-dimensional rock body in terms of three principal
stress axes – maximum or greatest (σ1), intermediate (σ2), and
minimum or least (σ3). All these stresses acting upon a rock
body are compressional but may have different magnitude and
direction. In normal faults, σ1 (rock overburden) is vertical and
extension takes place in the direction of σ3. In reverse (thrust)
faults σ1 is horizontal and σ3 is vertical, and thrust shortening
takes place in the direction of σ1. In strike-slip faults, σ2 is vertical
while both σ1 and σ3 are horizontal, and slip occurs at an angle of
45° or less to the orientation of σ1. Mean stress is the arithmetic
average of the three principal stresses (σ1 + σ2 + σ3 divided by 3).
(For more information refer to ‘Know Your Faults, Parts I and II,’
GEO ExPro, Vol. 9, Nos. 5 and 6.)
Isotropic (uniform) stress or confining pressure is a
situation in which a body is compressed by equal pressure in
Mode I
(Opening, Tension)
fracture
surface
Mode II
(Sliding, Shear)
Mode IV
(Closing, Anticrack)
Mode III
(Tearing, Shear)
Hybrid Mode
(Tension, Shear)
Various ‘modes’ of fractures depending on the relative movement of
fracture surfaces.
all directions; it may be lithostatic stress (a subsurface point
under the weight of a rock overburden) or hydrostatic stress
(a point enclosed by water). (Note that in some scientific
literature, hydrostatic pressure and confining pressure are used
as synonyms). Often, however, tectonic forces alter confining
pressures; therefore, stress is not equal in all directions.
Deviatoric stress is measured as total stress minus mean stress
acting upon the rock body. Differential stress is measured as
σ1 -σ3. If differential stress exceeds the strength of the rock, the
rock deforms (and eventually ruptures). Differential stress may
be compressional, tensional, or shear, which also determines
how the rock deforms in response to the stress.
Compression is the stress that shortens (squeezes) a rock
body; tension elongates (stretches) the rock body in two
opposite directions. Normal stress (σn) acts perpendicular to
a rock surface; it may be compressional (positive) or tensile
(negative). Effective normal stress is normal stress minus pore
fluid pressure. Shear stress (σs or τ) acts parallel to the rock
surface and causes two rock units to slide over each other; in
other words, shear stress changes the angles in a rock body.
Geologists also distinguish between paleostress (stress
that acted upon rocks in a given area in the geological past)
and in-situ or contemporary stress, which can be inferred
from plate motions, earthquakes or borehole data.
Horizontal
stresses in
a borehole
related to
borehole
breakout
and drillinginduced
tensile
fractures.
borehole
Rasoul Sorkhabi
Based on the relative movement of fracture surfaces, rock
fractures are classified into four ‘modes’.
Mode I fractures are tensile (opening) fractures in which two
fracture surfaces move away from each other. Joints are basically
Mode I fractures. In contrast, shear fractures involve the
relative movement of rock blocks parallel to the fracture surface.
Shear fractures may have lengths at the scale of millimeters
(microscopic) (called microfaults) or at the scale of centimeters
(minor faults); large (meter-length) shear fractures are properly
called faults. Shear fractures include Mode II or sliding
fractures, in which the relative movement is perpendicular to the
fracture front (as in strike-slip faults), and Mode III or tearing
mode, in which the relative movement is parallel to the fracture
front (as in dip-slip faults). Hybrid fractures combine both
tension (Mode I) and shear (Mode II or III) movements. Mode
IV or closing fractures are mineral-scale anti-cracks; stylolites
(pressure solutions) are typical examples of this mode.
Rasoul Sorkhabi
fracture
front (edge)
maximum
stress
horizontal
drilling-induced
tensile fractures
borehole
breakout
GEOExPro
minimum
stress
horizontal
September 2014
43
Mohr Envelope and Coulomb Failure
τ = μ σn
τ or σs
SHEAR
(COMPRESSION)
TENSION
σn = [(σ1+ σ3)/2] + [(σ1- σ3)/2] cos 2θ
.
(σ1- σ3)/2
− σn
.
σ3
τ = [(σ1- σ3)/2] sin 2θ
2θ
σn
σ1
(σ1+ σ3)/2
τ or σs : shear stress
σn :
normal stress
θ:
angle between σ3 and the plane on
which the normal and shear stresses
are determined
−τ
τ or σs
TENSILE FAILURE
SHEAR FAILURE
τ = C + σn tanφ
σs2 + 4Tσn – 4T2 = 0
.
lop
Enve
ilure
a
F
mb
lo
Cou
h–
t
ffi
i
Gr
.
− σn
e
φ
µ = tanφ
STABLE FIELD
C
σ3
T
σ2
σ1
σn
σ1
σ2
σ3
τ or σs : shear stress
σn :
normal stress
σ1> σ2 > σ3
For solid rocks, the value of μ ranges
from 0.47 to 0.7; for general calculations
it is assumed to be 0.6.
In 1773, Charles Coulomb verified
and refined Amontons’ equation. He
recognized that a rock fractures only if
the cohesive strength (C) of the rock is
exceeded. In other words:
Mohr envelop of failure using Griffith-Coulomb criteria. Depending on the position of the Mohr’s
circle of stresses, there are three fields: Stable (below the failure envelope), critically-stressed
(touching the failure envelope), and unstable (beyond the failure envelope in which the rock may
fracture by tension or by shear). Three principal stress axes are also depicted.
The constant C represents the critical
shear strength of the rock (or resistance
of the rock to shear stress) when normal
stress is zero. Rocks also have a critical
tensile strength, plotted as the point T, on
the Mohr diagram. Cohesive strength of a
rock is twice its tensile strength (C = 2T ).
Further work by Navier and Mohr
in the 19th century advanced our
understanding of rock failure. The
following equation quantifies the line
of shear failure on Mohr diagram and is
called Coulomb-Navier, Coulomb-Mohr
or simply Coulomb criterion of failure:
τ = C + μ σn
44 GEOExPro
September 2014
Rasoul Sorkhabi
Mohr circle and calculations of normal stress and shear stress on a plane
2T
We are now in a better position to delve
more into geomechanics and study how
rocks fail and fracture under stress. We
owe this analytical knowledge largely to a
group of French physicists and scientists:
Guillaume Amontons (1663–1705),
Charles-Augustin de Coulomb (1736–
1806), Claude-Louis Navier (1785–1836)
and L. Hartmann, as well as the German
engineer Christian Otto Mohr (1835–
1918), European engineer Richard Edler
von Mises (1883–1953), English engineer
Alan Arnold Griffith (1893–1963), and
Austrian soil engineer Karl von Terzaghi
(1883–1963). These scientists developed
powerful mathematical diagrams and
equations that calculate and thus predict
the development of rock fractures in
relation to stresses applied to rocks.
Graphical representation of rock
failure or fracture, called Mohr diagram,
includes the relationship between shear
stress (σs or τ) on the vertical axis and
normal stress (σn) on the horizontal axis
of the diagram, and the distance of rock
stress (represented by a circle) from a line
called the Mohr envelope of failure.
Various scientists have attempted to
quantify the criteria when the stressed
rock exceeds the failure envelope and thus
fractures either by tension or by shear.
In 1699, Guillaume Amontons
suggested that the shear force parallel
to a rock surface necessary to initiate
slip in the rock is directly proportional
to the normal force acting upon the
surface. The proportionality constant
μ is called the coefficient of internal
friction (a term introduced by Navier in
1833). Therefore, we can write:
Rasoul Sorkhabi
GEO Education
Principal stress axes:
Maximum (σ1)
Intermediate (σ2)
Minimum (σ3)
−τ
C:
T:
φ:
µ:
cohesive shear strength
critical tensile strength
angle of internal friction (~30°)
coefficient of internal friction (~0.6)
τ = C + σn tanφ
where φ is the angle of internal friction
(about 30° for sand grains).
The Mohr diagram indicates that as the
normal stress increases we also need more
shear stress to fracture the rock.
The Coulomb criterion describes the
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45
GEO Education
Marli Miller
PRESSURE
Hydrostatic pressure gradient
1 g/cm3
9.8 MPa/km
0.433 psi/ft
s
res
erp
Ov
ρ se
en
m
di
tg
z
ρ fluid g
z
Rasoul Sorkhabi
ρ: density
g: gravitational acceleration
z: depth
ure
re
essu
erpr
Und
DEPTH (Z)
Lithostatic pressure gradient
2.31 g/cm3
22.6 MPa/km
1.0 psi/ft
Fracture pressure gradient
Calculations of subsurface pressures for fluid (water) and sedimentary
rocks based on their pressure gradients. Fracture pressure is the stress
sufficient to fracture a rock. It is related to pore fluid overpressure.
Fracture pressure gradient is usually 18-20 MPa/km. Fracture pressure can
be determined from leak-off tests.
failure of rocks by shear (the right side of Mohr diagram), but
is not applicable to tensile fracturing (left side of the diagram).
Experimental work has shown that the Mohr envelope for tensile
failure is shaped like a parabola, and the point T (critical tensile
strength of a rock) represents the intersection of Mohr envelope
and the horizontal axis (normal stress). The value of T varies for
rocks. In 1920, Alan Griffith noted that this variation is due to
the existence of microscopic cracks, flaws, grain boundaries and
pore spaces in rocks; these random, pre-existing features, from
which tensile fractures originate, are collectively called Griffith
cracks. When a Griffith crack is oriented perpendicular to
tensile stress, the crack easily propagates at its ends in a direction
perpendicular to σ3,
the minimum
principal
Plumose fracture in argillite, Proterozoic Appekkuny Formation, Montana.
Fracture surfaces often display plume-like features; the axis of the plume
indicates the direction of fracture propagation (parallel to σ1). The fracture
probably originates from a heterogeneity in the rock (such as inclusions
and sedimentary structures). The average velocity of fracture propagation
has been measured to be half the speed of sound waves. The presence of
plumose features suggest that the fracture is still in open (tensile) mode.
axis. When the crack is oriented perpendicular to a compressive
stress, it tends to remain closed. Griffith criterion for tensile
failure on the Mohr envelope is:
σs2 + 4Tσn – 4T2 = 0
In summary, a combined Griffith-Coulomb criterion is the
best available model for quantifying the fracturing of rocks by
tension or shear. In ductile regimes, where the Mohr envelope
is expected to flatten and a maximum shear stress is reached,
other formulations such as Von Mises criterion should be
used to describe rock deformation.
References and Further Reading:
Fundamentals of Rock Mechanics, John Jaeger, N.G. Cook and Robert
Zimmerman (Wiley-Blackwell, 2007, 4th ed.)
Petroleum Related Rock Mechanics, by Erling Fajr, R.M. Holt,
A.M. Raaen and R. Risnes (Elsevier, 2008, 2nd ed.)
Reservoir Geomechanics, Mark Zoback (Cambridge
University Press, 2010)
Rock Joints: The Mechanical Genesis, Georg Mandl
(Springer, 2005, 2010)
Rasoul Sorkhabi
Vertical fractures and crossbeds
in the Jurassic-age Navajo
Sandstone, Checkerboard Mesa,
Zion National Park, Utah.
46 GEOExPro
September 2014
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Exploration
Mongolia
Mongolia’s oil and gas E&P sector
has been characterized by, well,
not very much – up until now.
Potential in an Emerging Economy
JUSTIN TULLY, Petro Matad; ANDREW BARNWELL, Barnwell Parker Geoscience
Petro Matad
Mongolia emerged as an independent
and fledgling democracy following the
collapse of the Soviet Union in 1991. In
the intervening two decades the country
has made massive progress, with a fast
growing economy and a stable political
system. Growth is now in double digits,
largely due to a rapidly increasing
mining sector. The Oyu Tolgoi gold
and copper mine, in the South Gobi
desert, for example, went on stream last
year and will contribute up to 30% of
Mongolia’s GDP at its peak. If progress
goes to plan, then this mine will be one
of the largest copper mines in the world
by the end of the decade. Mongolia is
also a large producer of coal, supplying
the domestic energy market, with the
surplus exported to China.
Despite this growth, however, and
with an emergent middle class requiring
ever more energy, Mongolia still imports
100% of its refined products, mostly
from Russia to the north. The domestic
market currently requires around 25,000
bopd, with over 50% being utilized by
the mining industry. This is a supply
problem that will only get worse, so now
the time is right for explorers to move in
and address the issue.
48 GEOExPro
September 2014
Mongolia has been producing oil
for many decades, but so far only on
a small scale. The Tsagaan Els and
Zunbayaan fields in the East Gobi were
drilled on seeps as long ago as 1941,
but have only produced combined
volumes of around 10 MMbo, although
they are still producing about 1,000
bopd. More recently, China’s PetroChina subsidiary, Daqing Oil, has
been producing from the Toson Uul
field complex in Blocks XIX and XXI,
near Mongolia’s eastern boundary, in
the Tamtsag Basin. This is a southerly
continuation of China’s producing
Hailar Basin trend. The Tamtsag Basin
has so far produced about 15 MMbo
since it came on stream in the late
1990s. The basin is currently producing
about 17,000 bopd from several small
fields, with the crude exported south to
China’s Hohhot refinery.
So what is the potential for further
development of this fledgling industry?
Megasequences and Analogous Basins
Mongolia has a number of sedimentary
basins, most of which are either
undrilled or have been only sparsely
explored. These basins, however, can
be very large; at present over 290,000
km2 are under license, which is more
than the land area of the UK! There are
a further 240,000 km2 that are pending
or study licenses. Currently 14 oil
companies have interests in Mongolia
but they are all small and most are
inactive, holding large positions on a
speculative or study basis. Only PetroChina is actively drilling and producing,
with Petro Matad as the most active
explorer in the frontier areas.
Petro Matad has recently completed
extensive regional evaluations, focused on
the central Block IV and V areas, as well
as Block XX. The company has integrated
four seasons of field work with modern
2D seismic and four stratigraphic core
holes, and has highlighted a number of
highly prospective areas which are worthy
of further exploration. Total basin fill of
3,000–5,000m is common, despite large
scale inversion since the Mesozoic and
Tertiary.
The oldest megasequence is a PermoCarboniferous to Jurassic pre-rift section,
which marked the transition from
marine passive margin stratigraphy of
the Paleo-Tethys Ocean to non-marine
succession following northward drift of
100°0'0" E
110°0'0" E
120°0'0" E
NW
130°0'0" E
Tamtsag Basin
B
Mogoit Subbasin
Khangain Nuur Subbasin
Uvur Khundii Subbasin
Navtgar Subbasin
Tertiary (N-f) Quaternary (Q)
Basalt flow (βN2)
1,000 –
B’
SE
500 –
RUSSIA
Sea Level –
Elevation (m)
-500 –
-1,000 –
-1,500 –
-2,000 –
-2,500 –
-3,000 –
-3,500 –
Legend
Seismic Line 11–20–18
10 km
Base Tertiary Unconformity
K2ss Sainshand Formation
Base Sainshand Unconformity
(
I
TA
AL
LE
D
ON
XXVI
IA
N
S
NT
M
G IV
O
BA BI-A
SI LT
N A
TIEN SHAN MNTS
•
MONGO IA
HE
RC
YN
NYALGA
BASIN
XVI
M.O.S
CENTRAL GOBI
X(N)
BASIN
V
I
XIII
TURPAN
BASIN
PERMIAN
XVII
VII
SOUTH GOBI
BASIN
XI
F.
Z.
XV BI
O
T G IN
S
AS XIV
E97
BA
XXIII
K1cc2 Upper Tsagaantsav Formation
K2dz1 Delta, alluvial fan, fluvial sandstone
K1cc1 Lower Tsagaantsav Formation
Base Tsagaantsav Unconformity
Carboniferous Intrusive Rock
Pre Rift 1
Basement
Pre Rift 2
Fault
HAILAR
BASIN
N
SONGLIAO
BASIN
TAMTSAG
BASIN
XIX XXI
B XX
B’
XXIV
ERLIAN
BASIN
40°0'0" N
CA
ULAANBAATAR
F.Z
JUNGGAR
BASIN
C.MONGOLIAN PLATE
E.G
.
I
TA N
AL ASI
B
A
LS
BA
OI S I N
H
XVIII
C BA
Basal Zuunbayan Unconformity
45°0'0" N
KAZAKHSTAN
K1dz2 Upper Zuunbayan Formation
K2dz1 Lower Zuunbayan Formation
IA
N
CHINA
TARIM
BASIN
50°0'0" N
90°0'0" E
Petro Matad
80°0'0" E
ORDOS
BASIN
QILAN SHAN MNTS
Petroleum Basins
Oil Fields
QAIDAM
BASIN
Mesozoic and Tertiay Faults
TIBETAN PLATEAU
Q.F.Z
0
160
320
640
960
1,280
Kilometers
Z.F
A.T.F
Q.F.Z
M.O.S
E.G.F.Z
Zuunbayan Fault
Altyn Tag Fault
Qilan Fault Zone
Mongol-Okhotsk Suture
East Gobi Fault Zone
35°0'0" N
Paleozoic Sutures
.F
A.T
Map showing the main basins of Mongolia and analogue basins in China, together with active PSCs only, and the producing oilfields of Mongolia.
Cross-section B-B’ shown on page 52.
a number of micro-continents, with the
closure of Paleo-Tethys and the formation
of the Mongolian/Chinese lithosphere.
Limestones overlain by fluvio-lacustrine
coals and clastics are the dominant
lithologies. This continent-continent
collisional event resulted in regional
uplift, and the development of a regional
angular unconformity at the end of the
Jurassic. The pre-rift section is a source
of economic coals, as well as abundant
oil and gas in producing analog basins
such as the Junggar and Turpan Basins in
China.
A large heat pulse then resulted in a
major extensional phase, with a strikeslip component, continental collapse
and development of a latest JurassicCretaceous syn-rift megasequence.
This sequence comprises interbedded
fluvio-lacustrine shales and sandstones,
which are both source and reservoir
for all of Mongolia’s currently proven
hydrocarbons. This play is also dominant
in several other Chinese basins, especially
the Songliao and Erlian Basins to the east.
Extensional tectonics subsided by
the mid-late Cretaceous, resulting in the
development of a predominantly coarse
clastic continental post-rift megasequence
in all the topographic lows. Further
inversion, however, was initiated in the
Tertiary as a result of the northward
GEOExPro
September 2014
49
collision of India to the south, and the
emplacement of the Himalayan orogen. This
resulted in a second major unconformity of
Tertiary age and dominant compressional
strike-slip tectonics. Most basins now have a
clear strike-slip component with associated
pull-aparts and compressional flower
structures. Compression is still underway,
with base level often >1000m above sea level.
As already mentioned, these basins
are extremely analogous to many
producing basins in China, with similar
megasequences and lithology. The
ingredients that result in multi-billion
barrel reserves in China should therefore be
present in the undrilled parts of Mongolia.
BIGER
BSC-1
TAATSIN
TUGRUG
TSC-1
Potential for Large Discoveries
Clear evidence of the potential for a working
petroleum system gathered by geoscientists
from Petro Matad has highlighted the
opportunity for large discoveries.
Across large areas of Block IV and
V, fieldwork has proven the existence of
syn-rift Upper Jurassic-Lower Cretaceous
lacustrine organic-rich shales interbedded
with sandstones in the Shine Khudag
Formation. TOC of samples in the Khoid
Ulaan Bulag oil shale, with a net shale
thickness of 265m, can range from 1.7% to
27% type I-II kerogen, and has a maximum
HI of 800. The thickness and quality can
vary, so that at Tsagaan Suvarga the average
TOC is 5.3% (1.7–10.6%), but net thickness
is 900m and HI reaches 900.
At almost every outcrop, many of which
may have been deposited in a marginal lake
setting, source rock quality is sufficient to
result in significant generation if mature.
Outcrop maturity averages around 0.6%
VR, marginally mature for generation.
Basin modeling, however, suggests that
in much of the subsurface the source will
be mature, with onset of generation in
the early Cretaceous following syn-rift
subsidence and burial.
Potential reservoir rocks of the syn-rift
megasequence are also extensive in
outcrop. Clean fluvio-deltaic sandstones
of the Tsagaantsav or Shine Khudag
Formations, with original porosities
ranging from 10-30%, are extensive. These
are often similar in age to the shales,
and are sometimes even interbedded
with them. Evidence of secondary quartz
overgrowth or clay mineralization is rare,
and porosity is preserved, even at depth in
the stratigraphic boreholes.
50 GEOExPro
September 2014
A carboniferous play may be present based
on analogy with the Junggar Basin
Stratigraphy of central Mongolia (Blocks IV and V), with a tectonic evolution and petroleum
system overview
Modified after Fugro
Exploration
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GEOExPro
September 2014
51
Syn-rift lacustrine sandstones, Argalant.
Petro Matad
Surface hydrocarbon seepages have not been observed to
date, but core from the deepest stratigraphic borehole, TSC-1
in Block V, which was the only test to reach the syn-rift section,
contained oil staining. Fluid inclusion studies also revealed
significant hydrocarbon inclusions from a range of core and
outcrop samples. These observations, plus the positive analogs
from China and the producing basins in Mongolia, all point to
the very high probability of a working syn-rift petroleum system.
The pre-rift is in a much less advanced stage of evaluation, and
is currently unproven in Mongolia. In China, however, this
megasequence is a major oil and gas producer in such basins as
the Tarim, Junggar and Turpan. Coals from this megasequence
are already mined within Mongolia so hopefully further work
will realize the potential of this deeper megasequence too.
Due to the complex history of extensional, compressional
and strike slip tectonics, abundant trapping styles are identified
on 2D seismic. These may consist of extensional features such
as rotated fault blocks; compressional features, including
thrusted anticlines, sub thrust plays and sub-unconformity
plays; stratigraphic plays like pinch-outs or basin floor fans; or a
combination of styles. This has resulted in the identification of
abundant leads with multi-billion barrel resource potential.
Petro Matad
Exploration
The Time is Right
Mongolia is a very large country with a huge resource base that is
just beginning to be exploited. With the mining sector dominating
the investment market and resultant growth anticipated to be
between 12–15% in the coming years, there is a large and growing
demand for energy. So far this has not been realized through
domestic production, but the time is right. Plans are underway for
the country’s first refinery, and supplying domestic oil to fill the
capacity makes both strategic and economic sense.
Mongolia is landlocked between Russia and China, which
has created problems for foreign investors with concerns about
delivery options in the past. But with the opening up of markets,
especially in China, with oil already being exported there, these
problems are disappearing. The country is becoming increasingly
politically stable with a fast growing economy. New investment
and petroleum laws have been recently implemented, and there
are attractive fiscal terms, making economics robust. All this,
plus very positive geological indicators, makes this frontier
area one of the most attractive opportunities available for new
investors in petroleum exploration.
Syn-rift lacustrine oil shale/source rock, Khoid Ulaan Bulag locality.
West-east cross section through Block XX, north-east Mongolia, showing the variety of potential trapping styles. For location of section see map on page 49.
NW
Tamtsag Basin
B
Mogoit Subbasin
Khangain Nuur Subbasin
Basalt flow (βN2)
1,000 –
Uvur Khundii Subbasin
Navtgar Subbasin
Tertiary (N-f) Quaternary (Q)
B’
SE
500 –
Sea Level –
Elevation (m)
-500 –
-1,000 –
-1,500 –
-2,000 –
-2,500 –
-3,000 –
-3,500 –
Legend
Seismic Line 11–20–18
10 km
Base Tertiary Unconformity
K2ss Sainshand Formation
Base Sainshand Unconformity
52 GEOExPro
September 2014
K1dz2 Upper Zuunbayan Formation
K2dz1 Lower Zuunbayan Formation
Basal Zuunbayan Unconformity
K1cc2 Upper Tsagaantsav Formation
K2dz1 Delta, alluvial fan, fluvial sandstone
K1cc1 Lower Tsagaantsav Formation
Base Tsagaantsav Unconformity
Carboniferous Intrusive Rock
Pre Rift 1
Basement
Pre Rift 2
Fault
Technology
and
Geohazard
Analysis
ERIC BOUANGA, dGB Earth Sciences and JAMES SELVAGE, BG Group
The last few years have seen a growing focus on shallow hazard analysis and, in particular, the structural
and stratigraphic interpretation of 3D seismic data to identify and delineate such geohazards
Examples of such global interpretation include the ‘Age
Volume’ technique that assigns a value representing relative
geologic time to each seismic sample position (Stark, 2003);
PaleoScan software from French startup company Eliis (Pauget
et al., 2009) that builds a geologic model by connecting each
seismic event to the most probable neighboring events; and
dGB’s own HorizonCube (de Groot et al., 2010).
This article will provide an overview of the HorizonCube
and how it can be applied in shallow geohazard interpretation.
The HorizonCube for Geohazard Analysis
The HorizonCube is an emerging global interpretation
technique that provides fully interpreted seismic volumes.
Horizons are automatically tracked mainly using the seismic
dip volume, but in a very complex geological setting a modeldriven approach (i.e. a
proportional interpolation
method between
dGB
Typical geohazards which need to be identified pre-drilling
include shallow gas, abnormal pressure zones and gas hydrates
– all of which can have a crucial impact on future production
operations and drilling decisions.
The benefits of conducting shallow hazard analysis in
3D seismic data as opposed to 2D include increased spatial
accuracy and the improved reliability of post- and pre-stack
amplitudes. This enables volume-based and amplitude-versusangle (AVA) based attributes to be interpreted.
3D seismic data also allows global interpretation methods
to be applied in shallow hazard interpretation workflows.
Such global interpretation methods can be characterized
as methods that generate fully interpreted volumes – often
through the concept of geologic age. Global interpretation
methods provide interpreters with the tools to slice through
volumes of seismic amplitudes and derived attributes along
geologic time lines, helping to recognize depositional features
and potential shallow hazards.
Figure 1: The HorizonCube is a 3D (or 2D) stack of horizons.
The HorizonCube in this display is a ‘truncated’ one, meaning
horizons stop when they get too close together. One of the horizons is
displayed in its entirety. Only the intersection of the other horizons with the
seismic line is shown. The inset shows prograding clinoforms, typical structures
best captured through data-driven tracking.
54 GEOExPro
September 2014
dGB
framework horizons) is preferred.
Compared to conventional
amplitude tracking, the
HorizonCube algorithm is more
robust in areas with low signal to
noise, where diachronous events
can be tracked as well as events
that are phase inconsistent. As
these horizons are also guided by
a continuous dip-field, they may
converge and diverge according to
the dip of a seismic reflector. In this
Figure 2: Tracking continuous horizons
way, the key geologic features such
Applying the Wheeler Domain
as unconformities, pinch-outs and condensed sections can
A key advantage of this technique in geohazard analysis is
be highlighted.
via the Wheeler Transformation (Wheeler, 1958) where, once
While the HorizonCube and its fully interpreted seismic
a satisfactory HorizonCube is constructed, any attribute of
volumes and high resolution seismic has significant
interest can be stratigraphically flattened.
implications for sequence stratigraphy, geological model
The Wheeler transformation warps the z-axis (time or depth)
building, well correlation, inversion and geosteering, this
article will look at the method’s applicability in shallow
of Cartesian space such that every horizon in the HorizonCube
hazard analysis.
is flat and their spacing regular. Within this flattened space, the
To generate a data-driven HorizonCube for geohazard
seismic data and selected attributes can be easily and efficiently
sliced in a pseudo-stratigraphically consistent manner.
analysis, a (dip-) SteeringCube is generated which calculates
The interpretation of anomalies in the Wheeler domain
local dip and azimuth values of the seismic reflectors and
increases the interpreter’s understanding of the spatial
generates a dense set of horizons throughout the 3D seismic
distribution and the timing of sediment deposition. Attributes
volume. The dip/azimuth field is then smoothed, reducing
can be flattened to assess shallow hazards, such as gas-filled
the impact of random noise and allowing the user to control
shallow channels, fluid and lithology variation relating to
the detail that needs to be captured by the horizon tracker.
seismic amplitude, pockmarks, bottom simulating reflectors,
Horizons can be tracked in two different modes: firstly,
and faulting or truncations based on similarities.
as truncated horizons (see Figure 1) that stop when they
In addition, Wheeler-transformed attribute volumes create
get too close together (when two events are getting close,
less interpretation ambiguity compared to time or depth slices,
only one stops). This helps to identify stratigraphic lapouts
or parallel to seabed slices. This is because the HorizonCube
such as onlaps, downlaps and top laps. The second mode
is where the horizons are tracked as continuous, staying
follows gross dip in a truly 3D sense, as can be seen in Figure 3.
together when they converge and never crossing each
The net result is that through use of the Wheeler domain it
other. Figure 2 illustrates this, where all horizons exist
becomes possible to see stratigraphic details that help increase the
at every X, Y position. Horizons start from a single seed
interpreter’s understanding of the depositional environment and
position separated in time by one sample position (one
enable them to better analyze shallow hazards.
sample is the closest one but it can be a multiple of one
Figure 3: The HorizonCube follows the seismic dip in 3D, with amplitude
sample, i.e. 1,2,3 etc…) and help identify unconformities
extractions having
less ambiguity when
and condensed sections.
The HorizonCube has key applications for shallow hazard
analysis prior to the drilling of new wells. In a typical
application, for example, a HorizonCube is created over
the upper part of a conventional 3D seismic data set in a
small area (typically 60–150 km2) centered on the intended
drilling site. The focus is on the shallow section up to
2,000m below the water bottom. A dense set of horizons
is mapped through a data and model-driven approach by
tracking dip and azimuth information.
In some cases, however, the quality of the seismic
prevents the data-driven approach. In such situations,
a model-driven approach is more appropriate where
relationships to bounding horizons, including
‘proportional’, ‘parallel- to-upper’, and ‘parallel-to-lower’,
are identified.
dGB
Implications for Shallow Hazard Analysis
compared to time
slice and seabed
flattened ones. The
seismic section (top) is
a random line shown
in red (bottom) from
the 3D seismic volume.
The yellow line shows
a parallel to seabed
horizon and the blue
line shows the horizon
extracted from the
HorizonCube, which
honors the gross dip
in 3D. Windowed Root
Mean Square (RMS)
amplitude extractions
can also be used to
take account of any
imperfections in the
HorizonCube.
GEOExPro
September 2014
55
Deepwater Applications
Figure 4. One of a sequence of pseudostratigraphic amplitude slices shown from
an 8 x 12 km volume for one of the drill site
locations. The slices are extracted from the
continuous HorizonCube on a step of every
20. An orange circle marks the proposed
exploration well location. A starting point
for shallow hazard identification is to
pan through every pseudo-stratigraphic
slice. This preliminary reconnaissance
identified a meandering channel system
that warrants further investigation with
different flattened seismic attributes.
dGB
Technology
dGB
dGB
To date, 12 exploration well site locations
have been assessed for shallow hazards
by BG Group (Selvage et al., 2012) using
the HorizonCube methodology, with
the main goal being to accurately map
the complex shallow section around the
proposed well locations. In the example
shown in Figures 4, 5 and 6 the present
seabed is characterized by active canyons
and the depositional environment is
reflected in the cross-cutting channelized
Figure 5: An RMS amplitude extraction
and turbiditic deposits evident in the
from a pseudo-stratigraphic slice, clipped
shallow seismic.
to show the brightest amplitudes in
The interpretation of the appropriate
red. These features may be associated
with shallow gas. Comparing the
hazard level associated with high
RMS amplitudes extracted with TWT
amplitude features within the shallow
extraction onto the pseudo-stratigraphic
section is significantly enhanced by the
slice shows that features trend
ability to slice through volumes along
perpendicular to TWT contours. The TWT
times can be used to search for whether
horizon slices. Potential connection
the bright amplitudes are structurally
between sand-prone channels and deepconformable, which may increase the
seated faults that could provide a gas
likelihood that they are associated with
migration pathway can also be studied.
shallow gas. If structural conformance
were observed, a Vp/Vs ratio attribute
These can be further risked based on
may help risk such features further.
potential pinch-out, isolation of sand
bodies within encasing shales and/or
conformance of sand bodies to structure.
In this deepwater area, the seabed and
Figure 6. An anomalously high amplitude
immediately sub-seabed sediments were
feature is observed in a synclinal feature
expected to be very soft with occasional
on the pseudo-stratigraphic slice
sands. These intervals are often
extracted from the HorizonCube (top).
The TWT values are extracted onto the
channelized and contain sandy intervals
slice with bright amplitudes rendered in
with higher porosity. Such intervals can
orange (bottom). The bright linear feature
have a chaotic amplitude character with
is interpreted as a shallow channel. The
bright amplitudes, associated with fluid
color bar on the TWT has been squeezed to
evaluate whether any bright amplitudes
fill or lithology (Figures 5 and 6).
coincide with closure against the
Through this methodology, suites of
shallow fault observed on the pseudopseudo-stratigraphic slices are generated stratigraphic slice.
over a large area when compared to
typical shallow hazard studies. The
result is a HorizonCube created over
an 11 by 14 km area designed to cover
one planned exploration well and two
likely appraisal well locations, should
With special thanks to BG Group
the exploration well be successful. One
for supplying the data shown in
of the appraisal wells was subsequently
this article.
drilled in a different location,
demonstrating the flexibility that the HorizonCube brings and
tool brings significant benefits, enabling any attribute of
its ability to detect geohazards.
interest to be flattened in order to perform a more complete
analysis of shallow hazards. This not only leads to a more
A Greater Understanding
holistic understanding of such hazards, but also provides
Today, the HorizonCube stands alongside other dGB
greater flexibility in the choice of well locations.
interpretation tools such as ‘Chimney Cubes’ in their ability
Furthermore, additional developments are expected over the
to detect geohazards. In the case of ‘Chimney Cubes’, for
next few months to achieve greater automation and robustness
example, vertical anomalies on the seismic data associated with
in results, so interpreters can focus their efforts on assessing
gas clouds and gas chimneys can be highlighted and drilling
identified geohazards rather than manually searching for
hazards, such as shallow gas pockets, identified.
them. This will lead to improved drilling, well and reservoir
It is clear that the HorizonCube as a global interpretation
management strategies and a considerable reduction in risk.
56 GEOExPro
September 2014
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Caspian Sea:
Frontier Exploration
in the Middle
Caspian Basin
The Caspian Sea has been a major focus for hydrocarbon exploration for many years, with
particular attention on the Precaspian and South Caspian Basins. However, hydrocarbon
exploration in the Central Caspian Sea has been sparse, with drilling activity largely
focused near shore and little to no activity within the central part of the basin.
Primary hydrocarbon discoveries have been made in the
deeper Triassic to Cretaceous strata, with potential still
remaining in the shallower Tertiary sequences.
0.200 —
Just over 5,000 km were acquired
in the Russian sector in 1995 and
subsequently reprocessed by CGG
in 2009, while another 5,000 km
of modern seismic were acquired
and processed in 2010 in the
Kazakh sector.
North Apsheron Depression
W
NW
0.400 —
This CGG multi-client dataset
consists of 81 long-offset 2D
seismic lines extending over
10,000 line kilometers across the
Middle Caspian Basin.
The illustrated seismic section is an arbitrary line oriented south-east, north-west to west across Kazakhstan and Russia within
the Central Caspian Sea. A number of key markers have been interpreted throughout the section to highlight the different
sequences from rift to drift stages. Primary source rocks are situated within the deeper Triassic rift section with reservoirs
within the Jurassic through to Cretaceous. Potential secondary source rocks and reservoirs can be found in Tertiary sequences
within large-scale clinoform systems, in particular within the Maykop Series.
Terek-Sulak Foredeep
0.000 —
CGG’s study area covers the
offshore Middle Caspian Basin
within Russia and Kazakhstan.
A regional 2D seismic grid has
been used to assess the area’s
petroleum geology.
South Mangyshlak Sub-basin
SE
Extremely shallow
water depths
Large-scale
clinoforms
0.600 —
0.800 —
1.000 —
Deep canyons
1.200 —
1.400 —
1.600 —
1.800 —
Volcanics
2.000 —
2.200 —
2.400 —
2.600 —
2.800 —
3.000 —
Thick
Tertiary
sequence
3.200 —
3.400 —
Truncation of
rift structures
3.600 —
Base Jurassic Unconformity
Upper Jurassic Unconformity
3.800 —
Intra-Cretaceous
4.000 —
Upper Cretaceous
4.200 —
Lower Tertiary Sequence Boundary
4.400 —
Upper Tertiary Sequence Boundary
Deep Triassic
graben fill
4.600 —
4.800 —
58 GEOExPro
September 2014
GEOExPro
September 2014
60
Potential in the Middle
Caspian Basin
JASWINDER MANN and
GREGOR DUVAL, CGG
CGG multi-client 2D seismic data across the Central Caspian Sea helps provide
understanding of current and new petroleum systems in a frontier area.
The Middle Caspian Basin extends onshore into parts
of Russia and Azerbaijan, with the offshore section in
Russia and Kazakhstan. In terms of structural geology,
the basin is bounded by the Great Caucasus fold belt on
the west and south-west, and the Karabogaz regional
basement high on the east and south-east. The northern
boundary of the basin extends along the Karpinsky ridge
and the Mangyshlak fold belt. The west area of the basin
is a typical foreland basin whereas the eastern area is
situated on a shallow crustal block between two areas of
uplift (Figure 1). Rifting of Hercynian basement occurred
during the Late Permian to Triassic and led to the infill of
basinal lows with thick clastics and carbonates. Volcanism
followed in the Late Triassic, with a period of compression
resulting in uplift and erosion of rifted blocks. The
basin in the east underwent strong deformation during
that period, with thrusting and folding forming the
Mangyshlak fold belt. From Jurassic to Eocene the
western area of the basin became a passive margin, with
continental and marine environments making up the
Cretaceous and Tertiary section (Ulmishek, 2001).
Exploration History
Approximately 14 Bboe have been discovered in the Middle
Caspian Basin, with primary reservoirs consisting of
Jurassic and Cretaceous rocks, while secondary reservoirs
are found within the Tertiary. The first discovery in the
Middle Caspian Basin encountered shallow oil within the
Middle Miocene sandstones from the Russian sector in
1893. Notable onshore discoveries in Kazakhstan began
in the 1950-60s, comprising Tenge (119 MMbo and 810
Bcf), Uzen (1.5 Bbo) and Dunga (408 MMbo). Most of the
Middle Caspian Basin’s discoveries trend along the South
Mangyshlak Sub-basin in a south-easterly direction.
A small number of wells were tested in the offshore
region of Kazakhstan but no discoveries were made.
The first offshore oil and gas field was encountered in
1974 near shore in Russia. Other onshore and offshore
discoveries in Russia include Khvalynskoye (127 bcm and
9.6 million tonnes of gas condensate), Yuri Korchagin (570
MMboe) and Tsentralnoye (98 MMboe), which is a shared
discovery between Russia and Kazakhstan.
Seismic Stratigraphy
Seismic data clearly illustrates that sediment thickness
varies considerably from west to east, due to basin
architecture and heterogeneities. In the deeper section
from basement to base Jurassic, clear rift features
can be seen; faulted basement blocks are present with
deep graben infill of Triassic sediments. Evidence of
compression and volcanism can be seen in this section
through deep folds and strong amplitude seismic
reflections within the South Mangyshlak Sub-basin.
Seismic data offshore Kazakhstan shows Jurassic strata
directly overlying basement blocks, indicating areas
where the Triassic is absent.
Figure 1: The Middle
Caspian Basin is
bounded by the Great
Caucasus fold belt, the
Karabogaz regional
basement high, the
Karpinsky ridge and
the Mangyshlak
fold belt.
GEOExPro
September 2014
61
The base Jurassic is marked by
an angular unconformity, which
is a prominent basin-wide marker
indicating the interface between
the top of the rift sequence and
the base of the post-rift section
(Figure 2). It is a significant event
representing the transition from
continental to marine environment
and a period of basinal subsidence
and quiescence which dominated
from the Jurassic period. The
Jurassic section thins and becomes
shallower to the east with the top
of the sequence marked by another
Figure 2: Petroleum potential of undrilled structures within the Triassic and Jurassic.
unconformity. The Cretaceous
section is a thin, uniform and fairly undeformed section only
dependent on fracturing. This has been observed in Cretaceous
partially affected by faulting. The Lower Cretaceous is thought
carbonates of the South Mangyshlak Sub-basin and fractured
to be siliciclastic-rich, especially within the Aptian and
Lower Maykop Series shales in the Prikum Arch.
Albian, and the Late Cretaceous is dominated by a carbonate
The faults present within the post-rift can be related
sequence. The Late Cretaceous has been significantly eroded,
to significant gas escape features throughout this section.
as deep incised canyons (up to 300m) are observed as a result
These gas chimneys are located directly above steeply
of large-scale erosion during the Tertiary.
dipping extensional faults at depth and clearly show that a
The Maykop Series marks the base of the Tertiary sequence.
working petroleum system is in place, especially in the less
Large-scale clinoforms are evident with chaotic reflectivity at
explored central part of the basin.
the base, indicative of debris flows and slump deposits such
There are a number of structural and stratigraphic traps
as olistostromes, suggesting the possibility of later uplift in
visible in the underexplored central area of the Caspian Sea.
the Caucasus region (Figure 3). The Maykop Series is thick
Compressional anticlinal folds in the deeper sections within
in the west (~1,200m) and thins eastwards to about 600m
the Triassic and Jurassic can be considered as major targets
where it downlaps the underlying Cretaceous section. The top
with both sequences acting as reservoirs (Figure 2). Potential
of this sequence is marked by an angular and highly erosive
can also be found within the Tertiary clinoforms, with
unconformity. A number of sequence boundaries can be
reservoir porosity and permeability likely to be preserved
interpreted within the shallower Tertiary section, with multiple
due to their shallow burial. The presence of a regional seal in
series of clinoforms prograding mainly towards the south-east
this case may be an issue, forcing exploration to be reliant on
(Figure 3). This major series of clinoforms is possibly indicative
more localized seals (Figure 3).
of a large sediment supply coming from the Great Caucasus Fold
References:
belt with the influence of high-magnitude sea level variations.
Dyman, T.S., Litinsky, V. A. and Ulmishek, G. F. (2001). Geology
Areas of Potential and Undrilled Structures
and Natural Gas Potential of Deep Sedimentary Basins in the
Former Soviet Union. Chapter 3, U. S. Geological Survey Digital
Data Series 67.
Exploration so far has focused onshore and near shore in the
basin, with little information known about the offshore area.
Ulmishek, G. F. (2001). Petroleum Geology and Resources of the
One can assume there are analogies to be made between the
Middle Caspian Basin, Former Soviet Union. USGS Bulletin 2201-A.
two parts of the basin when looking
Figure 3: Petroleum potential in large-scale Tertiary clinoform complexes, where there are possibilities of
at the geology and hydrocarbon
multiple stacked reservoirs.
potential. Discoveries located in the
Great Caucasus Fold Belt consist
of structural traps within long and
narrow faulted anticlines trending
north-west south-east. In Stavropol
Arch and Prikum Arch (see map),
hydrocarbon accumulations
are found in isometric low relief
anticlines located over deeper
Triassic reef structures or basement
highs (Dyman et al., 2001). The
permeability and connectivity of
many hydrocarbon reservoirs found
in that region is thought to be highly
62 GEOExPro
September 2014
Getting int0 DeepWater
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Technology
Three
Disappointments
HALFDAN CARSTENS
in the Barents Sea
None of Statoil’s three wells in the Barents Sea this summer is associated with EM anomalies
of any significance. It is therefore not surprising that not one of them proved commercial
quantities of hydrocarbons.
Fabulously Good Correlation
It has long been known that there is a
clear correlation between the response
of electromagnetic measurements and
the fluid content of a reservoir. Nowhere
is this better demonstrated than in
the Barents Sea. Jonny Hesthammer,
Managing Director of Atlantic
Petroleum Norway and professor at the
University of Bergen, has shown that
there is a clear correlation between
the size of the EM anomalies (NAR
= Normalized Amplitude Response)
and the volume of hydrocarbons in the
reservoir.
The drilling of Byrkje (7218/81) earlier this year was a further
confirmation that the lack of an
anomaly results in a dry well. The
Hanssen well (7324/7-2), however,
which OMV drilled in early summer
2014, showed that a CSEM anomaly
was associated with a small addition to
the main findings obtained from the
Wisting well.
“The results are startling,” says
Hesthammer. “I have looked at EMGS’s
inverted multi-client EM data from
the Hoop area, and it simply shows
an exceptionally good correlation
between the strength and extent of
observed EM anomalies and volumes of
hydrocarbons. The largest EM anomaly
64 GEOExPro
September 2014
in the area is related to Wisting, which
is believed to have discovered 132
MMboe. The second largest anomaly in
the area is associated with the Hanssen
discovery where between 18 and 56
MMboe was detected. This anomaly is
approximately a quarter of the size of
Wisting, which fits well with proved
reserves. And we must not forget
Wisting Alternative, which was drilled
outside the EM anomaly associated
with the Hanssen discovery. The well
targeted hydrocarbons in the Kobbe
Formation. It was, however, dry – again
in good agreement with the EM data
shows.”
Because of the Wisting and
Hanssen discoveries, the three holes
drilled by Statoil in the Barents Sea
last summer were followed with
extraordinary interest. All three were
a disappointment. For although small
amounts of gas were found in the two
wells (Atlantis and Mercury), it was in
far from commercial quantities. They
can at best be described as technical
discoveries.
As Hesthammer explains: “Although
there is an apparent anomaly associated
with Mercury, the size is small, only
about a third of that observed for
Hanssen. Again it fits very well with
the small gas volumes found [6–12
MMboe].
“There is simply a fabulously good
correlation between an observed
anomaly and the discovered amounts of
hydrocarbons in this area.”
What about Apollo and Atlantis
further north? These wells were drilled
in an area with significantly higher
background resistivity than that
Jonny Hesthammer has extensive experience in the use of EM data in exploration for oil and gas.
Based on the latest wells in the Barents Sea – including several disappointments – he claims that
there is evidence of a clear correlation between the size of EM anomalies and the size of hydrocarbon
discoveries in this geological province.
Halfdan Carstens
The drilling campaign in the Hoop
area last summer has only given very
meager results. Statoil made two tiny
gas discoveries (Atlantis, 7325/1-1 and
Mercury, 7324/9-1), and one dry well
(Apollo, 7324/2-1). This stands in sharp
contrast to the two oil discoveries OMV
previously made on Wisting (2013) and
Hanssen (2014).
How was it possible to miss so
fundamentally?
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observed for wells further south. But
the EM data is nonetheless compelling,
according to Hesthammer.
“Apollo was drilled just outside a
distinct resistive lineament, and it is not
linked to any clear EM anomaly. There
should therefore be no surprise that this
well was dry,” he says. “For the Atlantis
well the picture is more nuanced.
There is no obvious anomaly associated
with this prospect either, but EM data
revealed slightly elevated resistivity, and
it hangs nicely with the observation of
small amounts of gas in the well.”
Atlantis – Minor gas discovery
© Atlantic Petroleum
Technology
Apollo – Dry
Green background color
indicates higher background
resistivity to the north
Can We Neglect Data?
The picture is now complete. For while
the three discovery wells to the south
are all associated with EM anomalies
which fit with the hydrocarbon
volumes that have been detected, the
disappointing results from Apollo and
Atlantis are also nicely explained, since
the EM data does not show any apparent
associated anomaly.
“Additionally, the results of Atlantis
and Mercury show that EM has the
sensitivity to fault blocks down to 1x1
km and hydrocarbon columns that are
less than ten meters,” says the geologist
with broad geophysical knowledge.
As many would argue, that means
that it is very risky to explore in this
part of the world without using EM
data. “The data from the Hoop area
is some of the most persuasive I have
seen in terms of evidence that EM
Hanssen – Oil: 18-56 MMboe
Wisting Alternative - Dry
Wisting Central – Oil: 132 MMboe
Mercury – Gas: 6-12 MMboe
The EM anomalies in the Hoop area as mapped by EMGS. The two strongest anomalies are clearly
associated with the two discoveries of oil on Wisting and Hanssen, while Statoil’s three wells have
either a slight anomaly or are missing an anomaly.
technology works,” concludes Jonny
Hesthammer.
We, who sit on the sidelines, are left
asking whether these results will be used
in future drilling decisions. How many
good correlations must there be before
explorationists believe in a correlation
between EM and hydrocarbons? How
many dry wells will the Norwegian
government subsidize for the
conservative oil industry before realizing
what new technology can contribute?
See foldout article, page 36, for further
discussion on this topic.
© Atlantic Petroleum
Link between strength of EM anomaly and HC – Barents Sea
350%
Normalized anomalous response (NAR)
Strong EM response (NAR>15%)
Weak EM response (NAR<15%)
300%
Discovery – Exploration
Goliat – 238 MMboe
Havis – 250 MMboe
Wisting – 132 MMboe
250%
200%
Discovery – Calibration
Discovery – Unknown commercially
Discovery – Non-commercial
Skrugard – 286 MMboe
Norvarg – 189 MMboe
150%
Skavl – 35 MMboe
100%
Hanssen
– 18-56
MMboe
50%
Dry well – Exploration
Dry well – Calibration
Recent CSEM wells
Salina – 38 MMboe
Wisting Alt. – Dry
Mercury – 6-12 MMboe
Darwin – Dry
Atlantis – Minor gas
Byrkje – Dry
Apollo – Dry*
Bønna – Dry
Heilo – Dry
Eik – Dry
0
NAR=15%
-50%
1
3
5
7
9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85
Well #
*=The well was drilled within the NAR-tail and outside of a resistive feature defined as background
Mostly discoveries (76%)
66 GEOExPro
September 2014
Mostly dry wells (68%) (2.9% commercial discovery rate)
The relationship
between the
strength of the
EM anomaly
and recently
completed wells
on the Norwegian
continental
shelf. It appears
that commercial
discovery is
associated with the
NAR (normalized
amplitude) > 15.
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GEOExPro
September 2014
67
Recent Advances in Technology
Broadband Seismic
Technology and Beyond
LASSE AMUNDSEN, Statoil and
MARTIN LANDRØ, NTNU Trondheim
PART X: IsoMetrix – Isometric Sampling
IsoMetrix is more than broadband seismic. It goes beyond, by reconstructing the deghosted wavefield in 3D,
and performs fine spatial sampling in all directions. In this article we ask: how did the idea come about? What is
the story behind a ten-year R&D project in Schlumberger – its largest single engineering investment ever? The
result was a great innovation: IsoMetrix, a technology that can ‘read between the streamer lines’. The project
not only delivered the new seismic acquisition technology, but also the algorithms and workflows needed to
manage the unprecedented amount of data it produces.
‘An idea, like a ghost, must be spoken to a little before it will explain itself.’ – Charles Dickens
Dickens’ creative genius was praised by
fellow writers, and this quote shows he
was interested in the creative process.
You might have a great idea, but without
‘talking to’ or working with it, it will
never be realized. An idea may come
out of nowhere but you have to do some
deep investigations before it can be
explained and utilized fully. In other
words, you never know how it will turn
out unless you work hard with it first.
130 years after Dickens, a top-notch
scientist was sitting in ‘The Tent’,
Schlumberger’s research building
in Cambridgeshire. The building
is a theater of exciting technology,
providing a stimulating intellectual
environment for world-class scientists.
It is recognized for its active geophysics
department working on a wide range of
theoretical and experimental research,
with seismic as the common thread. The
scientist is studying how hydrophone
and geophone measurements can be
combined into deghosting, the basis for
broadband seismic. He realizes that only
the vertical component of the velocity
measurement is used in the deghosting
process, and deghosting at the time is
only applied on a streamer by streamer
basis, in 2D. Is there any use for the
two other components of the velocity
measurement, he wonders?
Using Crossline Data
Let’s go back to basics. The acoustic
wave equation governs the propagation
of acoustic waves through the Earth
and the water layer where the streamers
are towed. It describes the evolution of
WesternGeco
WesternGeco Trident leaving Cape Town earlier this year after
an IsoMetrix marine seismic technology upgrade.
68 GEOExPro
September 2014
acoustic pressure P or particle velocity
vector V as a function of position and
time. To arrive at the wave equation,
physicists make use of conservation
of mass and Newton’s law, which tells
us that the acceleration of particle
motion (the rate of change of velocity,
∂V/∂t) is related to the gradient of the
pressure wavefield ( P). For each of the
components, it yields:
ρ ∂Vx /∂t = -∂P/∂x
ρ ∂Vy /∂t = -∂P/∂y
ρ ∂Vz /∂t = -∂P/∂z
where ρ is the density of water.
As mentioned above, Vz is used
together with P in 2D deghosting. If x
denotes the inline, streamer direction,
there is no direct value of any Vx
measurement since the hydrophone
spacing is so dense for point-receiver
Reconstructing Signals
That is the question the Schlumberger
scientist asks himself; then he sees the
potential of having access to the ∂P/∂y
information. It is related to the theory
of discrete sampling, where one of the
limitations is the effect called aliasing.
Once more, we step back to basics.
An example of aliasing can be seen
when watching wagon wheels in old
Westerns. Occasionally wheels seem to
go backwards when the wagon speeds
up, as the rate at which the wheel’s
spokes spin approaches the rate of
the camera sampler. The same thing
happens in seismic data acquisition
between the spatial sampler and the
spatial signal (or wavefield) being
sampled.
Sampling is a fundamental theory in
signal processing and its applications. It
provides a bridge between continuous
bandlimited signals like seismic
wavefields and discrete signals
(digitally sampled wavefields), allowing
the representation, without loss of
information, of continuous signals by
discrete sequences, which can then be
processed digitally. The classic sampling
theorem asserts that a bandlimited
signal can be perfectly reconstructed
from its equally-spaced samples taken
at a rate which exceeds twice the
highest frequency F present in the
signal. A time function which has no
frequencies outside the interval [0,F]
can be reconstructed exactly from its
values at sampling points Δt=1/(2F).
This mathematically ideal interpolation
result is called Whitaker-Shannon’s
(1914, 1949) interpolation formula or
sinc interpolation. Shannon referred to
the critical sampling interval Δt=1/(2F)
as the Nyquist interval corresponding to
the band F, in recognition of Nyquist’s
discovery (1928) of the fundamental
importance of this interval in
connection with telegraphy.
An interesting extension of
Shannon’s interpolation formula
involves the reconstruction of a
bandlimited signal from samples of
the signal and its derivatives. Shannon
(1949) had remarked that a bandlimited
signal could be reconstructed from
WesternGeco
recording that ∂P/∂x can readily
be derived from conventional
pressure measurements by difference
approximations. The question is,
what use can one make of the ∂P/∂y
information, the pressure derivative
in the crossline streamer direction
provided by the Vy measurement? Due
to the wide streamer spacing, ∂P/∂y
cannot be derived from the pressure
measurements, which are severely
undersampled in that direction.
IsoMetrix streamers deploying into the sea.
They deliver point-receiver sampling of pressure
P from hydrophone and particle velocities Vy
and Vz in Y and Z directions from MEMS-based
measurements of acceleration.
samples of the signal and its first
derivative at half the Nyquist rate,
Δt=1/F. lt was Fogel (1955) who first
took up Shannon’s suggestion that a
function might be reconstructed from
its samples together with samples of
the derivatives. In Jagerman and Fogel
(1959) an explicit formula was given,
with a few applications where the
sampled derivatives were needed. Their
WesternGeco
This example compares images of intricate Paleogene sand injectites, which are commonly associated with reservoir units in the North Sea. The
IsoMetrix technology resolves these complex structures in all directions, unlike the hydrophone-only conventional equivalent.
GEOExPro
September 2014
69
WesternGeco
Recent Advances in Technology
conjunction with the pressure data. A true multicomponent
streamer would enable accurate data reconstruction in the
crossline direction with cable separations for which pressureonly data would be irrecoverably aliased.”
Ideas and Innovation
When ‘The Idea’ was presented internally in Schlumberger, it
spurred a lot of new thoughts and innovation as the company
put some of its best brains on the challenges ahead. How
could this work be extended to improve data reconstruction?
The solution was published in two key papers in Geophysics
in 2010 by Vassallo, Özbek, Özdemir, Eggenberger, and van
Manen. The first discussed multichannel interpolation by
matching pursuit using pressure and its crossline gradient,
while the second showed the possibility of doing joint
interpolation and 3D up/down wavefield separation by
generalized matching pursuit.
Measurement of crossline gradients enables unaliased reconstruction of
the seismic wavefield between streamers. The blue waveform represents
the actual signal, and the red waveform the reconstructed signal. The
figures contrast reconstructed signal with pressure-only measurements
in conventional surveys (top) versus pressure and gradients in IsoMetrix
surveys (bottom).
results were generalized by Linden (1959), and Linden and
Abramson (1960).
The importance of this result lies in its application. For the
geophysicist, the implication is that when both the function
and its derivative are sampled at interval Δt=1/(2F), then
we can reconstruct signals that have frequencies inside the
interval [0,2F].
So what connection did the Schlumberger scientist find
between sampling the pressure wavefield and its crossline
derivative ∂P/∂y? Access to ∂P/∂y, provided by the Vy
measurement, can help interpolation of data between the
streamers. More precisely, in between the physical streamers,
the data reconstruction theory based on pressure and pressure
derivative measurements could be used to predict what the
wavefield would be on densely spaced virtual streamers. The
Vy measurement would help the geophysicist to ‘read between
the receiver lines’.
The first hint of the IsoMetrix solution was published by
Johan O. A. Robertsson and co-workers at Schlumberger
and WesternGeco in the 2008 October issue of Geophysics.
They wrote in their now landmark paper: “Three-component
measurements of particle motion would bring significant
benefits to towed-marine seismic data if processed in
Reading between the Lines
Schlumberger immediately realized the potential of the
idea, seeing that it effectively removed the conventional
measurement gaps between individual streamers to fully
capture the returning wavefield in 3D for the first time.
Marine 3D seismic data are typically acquired by a vessel
equipped with 8 to 18 streamers, towed 50–100m apart, each
3–8 km long. Using point-receiver recording, the spatial
sampling of the data in the inline streamer direction can be
as fine as 3.125m, but sampling in the crossline direction is
16–32 times sparser – conventional 3D seismic could better
be described as ‘2½ D’. These geometries cannot measure the
full 3D wavefield; as we have discussed, the wavefield in the
crossline direction can be spatially undersampled, or aliased,
and may not allow accurate imaging of the subsurface,
especially in complex geology.
The new data acquisition technology was called IsoMetrix,
since the term isometric comes from the Greek for ‘having
equal measurement’. Simply stated, IsoMetrix provides a
technique to output equal sampling in both crossline and
inline directions from measurements of a wavefield that is
undersampled in the crossline.
Streamer Noise Mitigation
Another key challenge to be solved was reducing noise in
the streamer. The development of a streamer that measures
the signal component of particle acceleration was difficult
because motion sensors are extremely sensitive to acoustical
WesternGeco
Point-receiver measurements enable accurate characterization and subsequent removal of dominant noise modes. This example shows a snapshot
of the shape of a 400m streamer section as it is towed through the water (blue represents the top of the streamer and red the bottom). Compressional,
transversal and torsional motions all generate noise in the accelerometer measurements.
70 GEOExPro
September 2014
Range of Applications
To summarize, the cornerstone behind the IsoMetrix
technology is that when the derivative of the pressure is
measured in the crossline direction along with the pressure
wavefield itself, on streamers separated by 75–100m, one
can reconstruct the pressure wavefield between the cables,
creating a set of very densely spaced virtual streamers.
In addition, with the measurement of the derivative of
the pressure in the vertical direction, the measurements
together enable full 3D deghosting to extend the seismic
bandwidth. This fine sampling makes the data suitable for
a wide range of interpretation and modeling applications,
including high-resolution near-surface imaging, deep
reservoir characterization, and 4D (time-lapse) reservoir
monitoring.
IsoMetrix technology offers a number of benefits compared
with conventional acquisition techniques. It enhances
acquisition efficiency without compromising sampling or
bandwidth. Fine spatial sampling can be achieved with
relatively wide streamer separation, maximizing areal
productivity. Furthermore, the IsoMetrix deghosting
capability means that the entire length of the streamer spread
now can be towed deeper than with conventional systems,
benefiting from a quieter acquisition environment and
extending the weather window.
Acknowledgment:
The authors would like to thank Chris Cunnell of WesternGeco for
assistance with this article.
References:
Robertsson, J.O.A., Moore, I., Vassallo, M., Özdemir, A.K., van
Manen, D.J., and Özbek, A., 2008, On the use of multicomponent
streamer recordings for reconstruction of pressure wavefields in
the crossline direction, Geophysics, 73, A45-A49.
Özbek, A., Vassallo, M., Özdemir, K., van Manen, D.J., and
Eggenberger, K., 2010, Crossline wavefield reconstruction from
multicomponent streamer data: Part 2 — Joint interpolation
and 3D up/down separation by generalized matching pursuit,
Geophysics, 75(6), WB69–WB85.
Vassallo, M., Özbek, A., Özdemir, K., and Eggenberger, K., 2010,
Crossline wavefield reconstruction from multicomponent streamer
data: Part 1 — Multichannel interpolation by matching pursuit
(MIMAP) using pressure and its crossline gradient, Geophysics,
75(6), WB53–WB67.
Geo Expro Vol. 9, No. 5 http://www.geoexpro.com/magazine/vol9-no-5
Production Geoscience 2014
November 4th - 5th 2014
Radisson Blu Atlantic, Stavanger
www.geologi.no
REKLAMEBANKEN.COM
vibrations within the cable itself.
Schlumberger engineers started developing a new type of
streamer, ‘Nessie-6’, which combines traditional hydrophone
scalar wave measurements with calibrated point-receiver,
multi-measurement accelerometer sensors. These are based
on micro-electromechanical system (MEMS) technology,
and are used to record the full particle acceleration, giving
access to both vertical and horizontal crossline derivatives
of pressure. Nessie-6 samples the streamer-borne noise
sufficiently for it to be accurately characterized and then
removed by digital filtering for both the pressure and
acceleration measurements.
The Programme Committee
would like to invite you, and
your colleagues, to submit
papers and/or posters for
the 2014 Production Geoscience Conference around the
themes outlined below:
• Resourceutilisation
• IOR/EORinitiatives
(maturefields/tailendproduction)
• CoreWorkshop
• Newtechnicalinsights/techniques
• IOR/EORinitiatives
(newdevelopments/projects)
GEOExPro
September 2014
71
GEO Physics
Reservoir Rocks
Behaving Differently
Seismic wave propagation through fractured or porous and permeable reservoir rocks
creates frequencies not generated by the seismic source, providing a new
method to identify and directly map hydrocarbon accumulations.
THOMAS SMITH
Sofia Khan
Sofia Khan
Hydrocarbon reservoirs have certain characteristics
that differentiate them from all other subsurface
sedimentary rocks. These differentiating properties
are porosity, permeability, and pore fluids. To build an
accurate geologic model of the reservoir and improve
the success of exploration and development efforts, these
reservoir characteristics have to be properly imaged.
Sofia Khan, President of Nonlinear Seismic Imaging,
Inc., introduces a suite of proprietary methodologies
using these differentiating properties to address and
upgrade assumptions made decades ago. “We directly
image the unique signal that is being generated in porous,
permeable and fractured reservoir rocks, and not being
generated in other sedimentary rocks. As an end product,
we will directly identify hydrocarbon accumulations and
simplify the exploration effort.”
Normal marine seismic survey
being shot over subsurface
zone of interest 2. Using a
patented method described in
the section ‘Mapping Reservoir
Rocks Using Frequency Spectral
Broadening and the Presence
of the Slow Wave’, seismic
maps reveal newly created
frequencies generated in the
reservoir itself and not from the
original source. These newly
created frequencies indicate the
particular formation is porous
and permeable. A shows low
frequencies from 0-5 Hz and B
shows high frequencies from
100-125 Hz. The dark areas
on both maps highlight the
actual location and extent
of the reservoir based on the
generation of frequencies
that are only present in the
permeable, porous, fluidsaturated rock. Interestingly,
the results of the low and high
frequencies have verified each
other – the results look the
same in each case. Drilling has
verified oil within the mapped
reservoirs.
72 GEOExPro
September 2014
Understanding Seismic Waves in Reservoirs
“Current seismic practices generally ignore the effects
of dynamic elastic nonlinearity and treat sedimentary
rocks as elastically linear,” Sofia points out. “Implicit in the
assumption of linearity is the fact that the seismic wave
or pulse, recorded after being reflected and refracted, can
contain only those frequencies present in the input signal
– referring to the original seismic pulse that was initially
transmitted. In the assumption of an elastically linear
system, no new frequencies can be generated.
“Another assumption made is that the contribution
of a newly generated seismic wave in the reflected and
refracted signals from a porous and permeable rock
formation is negligible and can be ignored,” continues
Sofia. “Using current conventional data processing, which
does not realize the existence of this wave and does
not account for its lower velocity in the reservoir rocks,
its reflection is mapped as a ‘shadow’ or ‘ghost’ of the
compressional wave reflection. This is an artifact created
by the lack of understanding of actual behavior of seismic
wave propagation in porous and permeable reservoir
formations.”
The unique signal generated by the slower
compressional wave in permeable, porous and
fluid-saturated rock directly identifies hydrocarbon
accumulations.
Dynamic Elastic Nonlinearity
“Dynamic elastic nonlinearity can be used to distinguish
reservoir rocks from all other subsurface rocks. Its effects
are measured by the interaction between the seismic
waves during their propagation through the porous,
fractured, and fluid-saturated reservoir rocks. Reservoir
rock which acts like an elastically nonlinear medium
generates new frequencies that may not be present
in the original signal. The principle of superposition
generally applied to elastic linear systems does not hold,
and the propagating waves interact with each other.
If two frequencies simultaneously propagate through
the reservoir rock, sum and difference frequencies
are generated. Slow Wave or Drag Wave is generated,
traveling through reservoir fluid interconnections at a
lower velocity than the velocity of the compressional
wave in the rock matrix. This creates lower frequencies,
and the measurement of the lower velocity and
frequencies can be used to map subsurface permeable
formations,” Ms. Khan explains.
Seismic attributes related to propagation characteristics
of the compressional wave and Slow Wave or Drag Wave
are more sensitive for mapping reservoir properties
compared to currently used seismic attributes which relate
to velocity, attenuation, and modulus. This nonlinear
component, generated due to relative movement of fluids
and reservoir matrix, is caused due to hysteresis effects of
fluid movement. The effect is more pronounced for higher
viscosity pore fluids like oil when compared to gas or water.
Sofia Khan
Ms. Khan takes into account the presence of seismic
waves generated in reservoir rocks and how their reflection
and refraction properties can be effectively used as a seismic
attribute for direct reservoir imaging. “In reality, reflected
Imaging this unique signal that is generated by the slower
and refracted signals from a porous and permeable rock
compressional wave only in rock which is permeable, porous
formation have two components. Part of the propagating
and fluid-saturated will directly identify the hydrocarbon
energy is reflected and refracted from the rock matrix
accumulations.
and part of the energy is reflected and
This magnified illustration of a reservoir shows how seismic energy takes a tortuous path through
refracted from the pore fluids contained
interconnected pores. Part of the energy of the compressional wave travels through the rock matrix
in the rock formation. Throughout
mineral grains, while part travels through pore fluid connections and is known as Slow Wave.
the published scientific literature, the
compressional energy in the permeable
rocks, which travels through the pore fluid
interconnections in a tortuous path, is
known as Slow Wave because its velocity
is slower than the fast compressional
wave.” Slow Wave, as defined by known
literature, is diffusive and highly
attenuated, and therefore difficult to
measure in-situ in reservoirs. “Drag
Wave™” is a form of Slow Wave in that its
velocity is also measurably slower than the
fast compressional wave. This Drag Wave
can propagate over long distances through
and across the entire reservoir because it
is generated by the solid/liquid coupling
as the fast compressional wave propagates
through a rock that is permeable, porous
and fluid-saturated.
GEOExPro
September 2014
73
Sofia Khan
GEO Physics
This frequency graph illustrates the concept of frequency spectral broadening due to seismic wave propagation in the reservoir formation. A represents
the average value of the frequency spectrum and B has resulted from the spectral broadening due to the seismic wave propagation in the reservoir.
New frequencies created are shown as yellow areas C (lower frequencies) and D (higher frequencies). Pink area E is the loss of amplitude of the midfrequencies due to energy lost in harmonic generation. The spectral changes C, D and E are caused by elastic nonlinearity of the reservoir formation and
are used as a seismic attribute to identify reservoir rocks. For example, the CDP-stacked seismic reflection of the lower frequencies C will only display the
hydrocarbon bearing (nonlinear) reservoir rocks as depicted by the dark areas in the image on page 72.
Mapping Reservoir Rocks Using Frequency Spectral
Broadening and the Presence of the Slow Wave
In areas where either explosive or some form of impulse
seismic source is used, the nonlinearity component is
generated in reservoir rocks due to the slower compressional
wave known as Slow Wave. Additionally, low frequencies
are generated due to summing and differencing of discrete
frequencies which are part of the input signal wavelet and
have the broadening effect of the spectrum of the original
input signal. In both cases, lower frequencies are created
which were not part of the input signal.
It is important to record the total bandwidth and retain
the lower frequencies generated by the subsurface reservoir
rocks so that the lower frequencies are preserved. These lower
frequencies below 10 Hz can be used to highlight reservoir
formations using filtering methods that will isolate and display
(separately) low frequencies in the zone of interest all the
way down to 1 Hz. These lower frequencies will represent the
nonlinearity component generated in subsurface reservoir
rocks. A significant contribution of these lower frequencies is
caused by Slow Wave generated when a compressional wave
travels through a permeable, porous and oil-saturated reservoir.
Direct Reservoir Signature Using the Drag Wave
For normal recording operations, the most prevalent method
74 GEOExPro
September 2014
for land seismic imaging today is using surface vibrators and
emitting a swept frequency signal, then processing the data
after cross-correlation with the input signal. Drag Wave is
an important signal that is being ignored because the crosscorrelation with the primary swept frequency acts like a
powerful filter and discards all other signals being generated.
Direct Reservoir Signature using the Drag Wave is a new
way to acquire seismic data, highlighting information that
is currently being ignored. The beauty of this technology is
that it preserves the normal data being recorded currently
and additionally provides another seismic cross-section,
which displays only the reservoir rocks.
One main advantage of this new method is that the
lower frequency generated due to the Drag Wave is totally
unique and cannot be mistaken by the harmonics or
interaction of frequencies. This lower frequency becomes
a very reliable indicator of the presence of subsurface
reservoir formations.
In this manner, we can identify potential areas which
will be of interest for hydrocarbon exploration and
discard areas that do not show any potential prospect of
finding any reservoir fluids in the subsurface. This simple
exploration technology will eliminate drilling unnecessary
wells since the absence of the reservoir signature also
indicates the absence of any fluid-saturated reservoir rocks.
4C the future of your reservoir
with better illumination and higher resolution seismic data
Seabed Geosolutions provides better azimuth and offset diversity
with multi-component (4C) seismic technology positioned directly
on the seabed in water depths ranging from 0 - 3000m. Delivering
robust broadband seismic data to resolve ambiguity in your
reservoir model and extract maximum value from your assets.
Join us at
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October 26 - 31
Find out how 4C technology can considerably improve
your seismic image, refine your development and appraisal
decisions and enhance recovery in your reservoir.
Contact us at
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4
Date for your Diary
PESGB and DECC bring you the 12th show in their highly successful series of Prospects Fairs - the UK’s
leading networking event for exploration and development
Only a few booths now remain, book now to avoid disappointment!
Format: Two day exhibition with a parallel speaker programme including the highly
popular ‘Prospects to Go’ sessions. Featuring talks from DECC, UKOOG, Hannon
Westwood, Oil & Gas UK, EBN and many more.
Registration: Is now open - £143 for PESGB members, £157 for non-members and
includes admission to the conference and exhibition, all day refreshments,
luncheon and a networking wine reception.
Sponsorship: To ﬁnd out about sponsorship opportunities, please contact
[email protected].
With thanks to our sponsors:
CATALYST
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www.pesgb.org.uk
GEOExPro
September 2014
75
Reservoir Magic?
Early results are showing a strong future for technology that
requires little additional cost or effort over shooting conventional
seismic data. The additional images created as a result of this
technology will enable companies to map the inter-well geologic
profile of the reservoir rock and their flow characteristics.
including porosity, permeability and the pockets of oil left behind,
in order to achieve more efficient fluid recoveries. All this can be
accomplished without huge capital investments and using current
hardware and software.
“This technology will improve recovery of reserves from
existing fields and ultimately discover new fields, providing a layer
of confidence before drilling not currently seen in the industry,”
says Sofia Khan. “Directly locating hydrocarbons with unique
solutions and unambiguous results will clearly identify those
left behind in existing fields. It will also be extremely useful for
reconnaissance work in unexplored and underexplored areas of
the world by confirming or declining the presence of reservoir
rocks, drilling new wells only where newly generated lowerfrequency signals are present.”
Editor’s note: The technologies described in this article are
patent-protected. While real world examples of their validity
exist, confidentiality precludes their use.
76 GEOExPro
September 2014
While recording conventional
Vibroseis data after certain prescribed
distances, a monofrequency input
signal G, J is transmitted (for example
40 Hz) to evaluate the presence
of reservoir rocks underneath
that source location. When a
compressional wave travels through
a permeable and fluid-saturated
reservoir formation, the Drag Wave
travels through reservoir fluid
interconnections at a slower velocity
than the compressional wave in
the rock matrix. Due to the Doppler
Effect, a unique lower frequency
known as the Drag Wave frequency
K is present, for example 10 Hz L. Its
character depends on the tortuosity
of pore interconnections, presence
of pore fluids, and permeability.
This information, which is part of
this new signal generated in the
reservoir (the reservoir signature),
is going to be different from one
location to the other, based on the
reservoir properties. The ratio of the
primary frequency J to the Drag Wave
frequency L provides the transfer
function or conversion factor, which
is 4:1 in this example. The transfer
function is calculated to convert
the swept frequency signal used for
conventional seismic recording. This
converted swept frequency signal is
cross-correlated with the normally
recorded signal. The lower frequency
is there when the reservoir is present
(K), and the lower frequency is not
there when there is no reservoir (H).
Sofia Khan
Sofia Khan
GEO Physics
Sofia Khan, President of Nonlinear Seismic Imaging, Inc., grew
up in the world of international oil and gas exploration with
her father, Tawassul Khan. She has led a dedicated effort,
along with her father, to the advancement of technology for oil
discovery since founding the company in 2001.
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What I Do
Geologist Dr. Jeroen
Peters describes his role
as Shell’s Chief Explorer
and reflects on his career.
Having been born below sea level in the
muddy western part of The Netherlands,
I developed an early fascination with
mountains. It quickly became clear
that geology was a good match with my
other interests, such as sports, hiking
and my other passion, photography. I
studied in Amsterdam where, following
a B.Sc. in Geology, I completed an M.Sc.
in Structural Geology and a Ph.D. in
Marine Geology. I joined Shell in 1985.
Over the past 29 years, I have lived
and worked in The Netherlands, the
UK, Oman, China and Brunei. I have
had an exciting mix of technical and
managerial roles at Shell, covering
exploration ventures (with plenty of
interesting seismic and well activities),
new business development, oil and
gas production and, last but not least,
Health, Safety and Environment (HSE).
During the early stages of my career
I really benefited from sound advice
from senior colleagues. Such coaching
helped me tremendously in familiarizing
myself with some of the fundamental
techniques and processes in our
industry, as well as raising my awareness
of what not to do, especially in terms of
seismic and well operations.
My current position of Chief Explorer
is primarily a functional role, and
includes being the global discipline head
for exploration geosciences (600+ staff)
and leading the geoscience technical
assurance activities in global exploration.
My immediate team consists of
experienced professionals who support
the various regions and business units
in efficiently and safely maturing and
executing exploration activities around
the globe. We have four focus areas in
our Exploration function: staff capability,
technology development and deployment,
global exploration processes, and
connectivity amongst the large number of
geoscientists across Shell.
Capability and staff development get
significant attention in Shell. My role
ranges from overseeing recruitment and
development of new professionals, to
technical and business ‘on-the-job’ and
formal training, as well as leadership
training and diversity and inclusiveness
78 GEOExPro
September 2014
activities. In addition, through
coordination with the other geoscience
disciplines such as geophysics,
production geology and geomatics,
we align competency frameworks,
coordinate and optimize training
programs, and facilitate numerous staff
moves.
As part of capability building, Shell
maintains numerous formal and informal
connections with academic institutions
and professional societies across the
world. These partnerships allow the
sharing of knowledge and ideas, driving
forward research and development,
and thus improving how we run our
business. In addition, I am a member
of the Corporate Advisory Board of the
American Association of Petroleum
Geologists (AAPG), and I also support
their Distinguished Lecturer program.
Excited by Opportunities
Regarding technology, continued
investment is essential to develop and
deploy new technologies in both fossil
fuels and alternative energy sources.
As Chief Explorer, I am excited by the
seemingly endless stream of opportunities
for improved and cheaper de-risking
of oil and gas exploration prospects
through technology, for example, using
enhanced seismic acquisition and
processing, 3D imaging techniques,
novel drilling tools, geoscience modeling
software and more efficient IT and data
management. Moreover, linked to the
growth in unconventional exploration
and development, we have widened the
scope of subsurface research to focus
on the properties of shales and mud
rocks (yesterday’s source rock is today’s
reservoir…).
Rapid developments in sensor
technologies and autonomous deployment
techniques, especially when combined
with improved exploration processes and
workflows, mean that there is a plethora
of new things to try out in the field. In
combination with rigorous application
of in-house project management and
play-based evaluation processes and tools,
these technological developments offer
the opportunity to really improve the
industry’s performance, while driving
down safety exposure and reducing costs.
Because our earth scientists are
employed in different conventional and
unconventional exploration ventures
across many countries, our team
makes a real effort to regularly provide
opportunities for our professionals
to share best practices, operational
experiences and new technology
applications through global and regional
conferences, workshops, joint reviews,
webcasts and other events.
Before becoming Chief Explorer in
2012, I was Regional Exploration VicePresident for Europe. This role confirmed
to me yet again the importance of visible
safety leadership in the execution of
exploration activities. One of my key
learnings from visits to operational sites
has been that a strong HSE performance
has a positive impact on operational
performance and costs. I regularly
participate in operational visits and try
to join one or two field trips a year, which
provide excellent opportunities to engage
with exploration staff outside the office
environment. In fact, such informal
conversations with colleagues give me
the best insights into our business.
Reflecting on my experiences so
far, my advice to students who are
considering following a geoscience
career and joining the energy sector
is that there will continue to be
great opportunities. Given the fast
developments in technology against a
background of continuously evolving
global political, economic and
environmental circumstances, I expect
that – like in the past – there will be
no lack of activity or excitement in our
highly dynamic industry.
Jeroen Peters at Lipari in the Aeolian Islands.
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go wherever you need them—on land, in transition
zones, in shallow water or deep—so you can optimize
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I M A G I N G
Imaging the Next
Hydrocarbon Province
With the new Liensing Round Offshore Greece and recent
light-oil discoveries onshore Albania (Shpiragu-2), the focus is
once again on the southern Adriatic region
Exploration activity has previously bypassed the basins offshore western and southern Greece. With the
newly available GeoStreamer® with GeoSource™ dataset, the region is now ready to be explored. The
license blocks have been delineated and the offshore area has been subdivided into four regions: North
Ionian, Central Ionian, South Ionian and South of Crete. Within these regions, the Apulian Platform and the
geotectonic zones of Paxi and Ionian occur to a varying degree, each contributing to the
petroleum systems according to their individual geological history.
Left: Schematic map
showing the external
geotectonic zones
onshore and offshore
Greece. Modified
from Pichon, et al.
(2002) and Monopolis
& Bruneton (1982).
Below: Map of Greece showing the new
data coverage and the exploration
blocks extending along the western and
southern offshore area. The foldout line
extends across the North Ionian region
and is indicated in yellow.
Exploration in the offshore western Greece region to date has resulted in one discovery
(Katakolon, 1981). Furthermore, two thirds of the 14 exploration wells drilled offshore
Greece had gas/oil shows and hydrocarbon seeps are abundant both onshore and offshore.
A seismic line (in TWT) from the North Ionian region, which extends across the Apulian Platform (south-east) and into the
surrounding basins (north-west). Major geological horizons have been interpreted, and the line displays the diversity of
possible plays in the region, with, for example, re-sedimented carbonates along the platform margin, the carbonate platform
margin itself, basinal buildups and inversion structures. An increase in acoustic impedance is represented by a trough.
North-West
South-East
TWT
(s)
1.500 –
2.000 –
2.500 –
3.000 –
3.500 –
4.000 –
4.500 –
5.000 –
Seabed
Messinian unconformity
5.500 –
Jurassic-Eocene platform
Mass transport deposit
Intra Lower Jurassic
6.000 –
10 km
Top Triassic
Lower Triassic unconformity
6.500 –
80 GEOExPro
September 2014
GEOExPro
September 2014
82
Geological Background
The geology of western and southern Greece has been
influenced by the movements of the Eurasian and African
plates since late Cretaceous times, when they began
to converge and collide. The result is the Peri-Adriatic
orogenic belt that extends from the Maghrebides in the
south-west, via the Italian Apennines and extending
eastwards, covering the Croatian Dinarides, the Albanian
Albanides, and the Greek Hellenides. The Hellenides are a
fold-and-thrust belt, and the prospective outermost part,
the External Hellenides, encompasses the Ionian zone,
Paxi zone and Apulian Platform. These geotectonic zones
originated during the Mesozoic rifting of the southern
Tethys margin, creating a platform-basin configuration.
The stratigraphic succession of the external zones
and the carbonate platform comprises predominantly
Triassic breccia and evaporites, overlain by Jurassic to
Eocene platform and pelagic carbonates, with younger
carbonates in the Paxi zone and on the Apulian Platform.
The platform is dominated by dolomitization in the Early
Mesozoic succession, and by karstification in the Late
Mesozoic and Early Paleogene succession. In the basin
(Ionian), pelagic carbonates with cherts are abundant.
PAXI (PRE-APULIAN)
IONIAN
NEOGENE
Messinian evaporites
Shales & sandstones
Miocene
?
PALEOG.
Marls
Flysch
Oligocene
?
Eocene
Paleocene
Late
CRETACEOUS
With renewed interest offshore south-eastern Italy and
recent light-oil discoveries onshore Albania (Shpiragu-2),
the focus is once again on the southern Adriatic region.
The Hellenides and the Albanides together are the mirror
image of the Apennines, with discoveries in the external
geotectonic zones and the fore deeps. There is a range of
potential traps, including sub-thrust traps in the external
zones, the karstified carbonate platform, re-sedimented
carbonates along the platform edges, and stratigraphic
pinch-outs within and at the basin margins. These are
just a selection of the possible traps observed in the new
dataset from the under-explored offshore Greece region.
APULIAN PLATFORM
Pliocene
Vigla
shales
Early
Pelagic limestones
Shallow water
carbonates
Late
JURASSIC
In preparation for the 2014 licensing round that
opens in September, PGS have, on behalf of YPEKA,
acquired 12,500 km of 2D seismic data offshore
western and southern Greece. The exceptional
quality of the new seismic data has allowed a
confident delineation of the stratigraphic record and
the various play types. The exploration blocks are
now defined and, with the regulatory framework in
place, the region is ready to be further explored.
EPOCH
Pleistocene
Posidonia
shales
Middle
Early
PERMIAN TRIASSIC
MARI SCHJELDSØE BERG and ØYSTEIN LIE,
Petroleum Geo-Services (PGS )
SPYRIDON BELLAS and
ANTONIS ANGELOPOULOS,
Greek Ministry of Environment,
Energy and Climate Change (YPEKA),
Petroleum Policy Directorate
PERIOD
Unlocking Offshore Greece : New Regional
GeoStreamer Dataset Provides Key Answers
Late
Middle
Early
Late
Burano Fm.
Siliciclastics & carbonates
Early
Schematic stratigraphy including hydrocarbon potential across the
Apulian Platform, Pre-Apulian (Paxi) and Ionian zones. Modified
from Argnani (2013).
With the onset of convergence and growth of the foldand-thrust belt, a foreland basin developed in the west;
the carbonate deposition ceased and flysch dominates
the post-Eocene succession in the Ionian zone. With the
re-flooding of the Mediterranean in post-Messinian times,
the Apulian platform was drowned and clastic input from
the west-verging Hellenides and east-verging Apennines
dominates the Pliocene to Recent strata.
Several source-rock intervals exist within the External
Hellenides, mainly the Triassic Burano Formation or
equivalents, which was deposited in a restricted basinal,
marine environment adjacent to the carbonate platforms
from Middle Triassic to Liassic time (Zappaterra, 1994).
During the Jurassic rifting related to the Tethys Ocean
created a platform-basin configuration (Gavrovo/Apulian
– Ionian) and the organic-rich Jurassic Posidonia beds
GEOExPro
September 2014
83
TWT
(s)
–
1.000 –
–
2.000 –
–
3.000 –
–
4.000 –
–
5.000 –
–
6.000 –
–
7.000 –
–
10 km
8.000 –
Seabed
Messinian unconformity
Mid Miocene unconformity
Top Eocene carbonates
Top Triassic evaporites
Basement
–
Interpreted south-east to north-west line across the Central Ionian area, showing the thrust-related Triassic salt diapir in the center, with the rotated
beds adjacent to the salt. The Messinian unconformity (yellow) is dominant in the area, in places clearly showing the erosion of Early Miocene
deposits. An increase in acoustic impedance is represented by a white trough.
(Ammonitico Rosso equivalent [Mavromatidis, 2009])
were deposited within these rift-related sub-basins. The
Cretaceous was the quiescent post-rift period during
which continuous subsidence of the basin created stagnant
conditions in deeper waters and allowed the deposition of
the organic-rich Vigla shale member (Karakitsios, 2013).
Several Play Types
reflectors, the latter indicating the presence of gas hydrates.
Open Licensing Round
Greece is offering significant investment opportunities and
attractive areas for exploration in the upcoming offshore
license round, which is expected to open in September 2014,
with applications required within the following six months.
Twenty exploration blocks have been defined, the block sizes
varying from approximately 2,000 km2 in the north up to
9,000 km2 in the south (see map on page 82).
The initial exploration stage (divided into three phases),
linked to a specific work program, is eight years, extendable
under specific terms, whereas the exploitation period based
on a development and production plan is 25 years, which can
be extended. The lease agreement is based on a royalty and
tax arrangement. Fiscal terms are attractive, with income
tax of 20% and regional tax of only 5%. Block awards are
expected to be announced in the third quarter of 2015.
The development of the Hellenides nappes created potential
hydrocarbon traps in the external zones in the form of
sub-thrust traps, a play which is proven to the north in the
Albanian part of the Ionian zone (e.g. Finiq Krane, Delvina,
Ballsh Hekal). Strata upturned adjacent to salt diapirs,
developed as a result of halokinesis, commonly form traps.
This trapping mechanism, frequently encountered along
the passive margins of West Africa and South America, is
observed in the Central Ionian region (see image above).
Stratigraphic traps are common in the Neogene clastics
of the Albanian Ionian zone, where molassic
South-west to north-east line from the South of Crete region. Messinian salt is
deposits unconformably overlie Oligocene flysch
present and covers the underlying strata. The light blue horizon is interpreted to be
and carbonates (Patos-Marinza and Kucova). They an intra-Mesozoic carbonate platform reflector. An increase in acoustic impedance is
are equally important in the Northern and Central represented by a white trough.
Ionian regions. Further west, within the Paxi zone
2.500 –
–
and on the Apulian Platform, the Italian analogs
3.000 –
come into play, with karstic reservoirs (e.g. Rospo
–
3.500 –
Mare), carbonate buildups (e.g. Giove) and shelf
–
edge deposits (e.g. Falco), all proven plays.
4.000 –
The Southern Ionian and South of Crete
–
4.500 –
regions are vast unexplored territories where
–
several interesting features have been imaged
5.000 –
–
for the first time. Amongst them are sub5.500 –
Messinian anticlines and large anticlines within
–
Seabed
6.000 –
the Miocene sediments (right). There are three
Top Messinian
–
evaporites
main play types in this area: the fold-and-thrust
6.500 –
Base Neogene
flysch
–
belt; anticlines related to strike-slip movements
Intra Mesozoic
7.000 –
platform
together with fault blocks related to normal fault
–
Basement
7.500 –
activity; and the Mediterranean Ridge back–
10 km
thrust play. Identified hydrocarbon indicators
8.000 –
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84 GEOExPro
September 2014
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G E O S C I E N C E
I N F O R M A T I O N
T H A T
L E A D S
T O
A C T I O N
Exploration
Unveiling
Oil Targets
in the
Colombian
Amazonia
At a Salsa
Tempo!
The phases of a remote
sensing project
What is Remote Sensing? (A hint: it is not
rocket science!)
Remote sensing is a very efficient and
effective tool for oil and gas exploration,
since it enables the quick acquisition of
relevant information and target definition
in areas of considerable extent or
difficult access, providing an appropriate
context for decision making as to further
exploration efforts.
Using its classic definition, remote
sensing is the science and technology of
gathering information about an object
through the analysis of data acquired by
a device that is not in physical contact
with it. Such an object, usually an area
of interest in an oil and gas exploration
program, can be identified, characterized
and defined from sensors mounted on
board satellites, airplanes or helicopters.
Optical remote sensing sensors acquire
data through visible, near and shortwave and thermal infrared, which form
images of the earth’s surface by detecting
the solar radiation reflected or absorbed
and emitted from targets on the ground.
Different materials reflect, absorb and
emit differently at different wavelengths;
thus, targets can be differentiated by their
spectral reflectance signatures in the
remotely sensed images.
The reflectance spectrum of a material,
86 GEOExPro
September 2014
All images: HytecAltoAmericas
GUILLERMO RE KÜHL
President, HytecAltoAmericas S.A.
being the fraction of radiation reflected
as a function of the incident wavelength,
serves as a unique signature for the
material. This material can therefore be
identified from its spectral reflectance
signature if the remote sensing sensor
has sufficient spectral resolution to
distinguish its spectrum from those of
other materials. A multispectral imaging
sensor is a multichannel detector
with several spectral bands, while
hyperspectral imaging sensors acquire
images in a hundred or more contiguous
spectral bands.
Furthermore, some remote sensing
satellites and airborne active sensors emit
pulses of microwave radiation which
illuminate the areas to be imaged; these
are called Synthetic Aperture Radar (SAR)
Sensors. Images of the earth’s surface
are formed by measuring the microwave
energy scattered by the ground or sea
back to the sensors. These satellites carry
their own ‘flashlight’ emitting microwaves
to illuminate their targets. The images
can, therefore, be acquired day and night
and have the additional advantage that
they can penetrate clouds, so images can
be acquired even when the earth’s surface
is shrouded in mist.
Optical and thermal satellite platforms.
presence, content and type of vegetation,
humidity and topography.
Hence, the analysis of the presence and
abundance of such minerals and soil or
vegetation chemical anomalies, together
with the existence of thermal anomalies
combined with a comprehensive
study of the structural geology and
geomorphology of the area, facilitates
the identification of hydrocarbon-related
potential target areas.
With a Little Help From Space
Understanding the Big Picture
The rationale behind the application of
this technology in oil and gas exploration
is that the migration of lightweight
hydrocarbons to the subsurface can
generate local anomalous areas. These
are characterized by reduction conditions
that facilitate the development of a variety
of chemical and mineralogical changes
that can be detected through remote
sensing techniques. Possible alterations
include bleaching, the development of
iron and clay minerals, the formation of
carbonates and geobotanical anomalies,
among others.
Surficial and near-subsurface thermal
variations produced by hydrocarbon
migration can also be recognized
with specific sensors. Such variations
measured by thermal devices could be
a result of endogenous factors, such
as anomalous thermal fluid flows,
structural boundaries or lithological
changes. These are morpho-structural
alterations that have to be recognized
and interpreted separately from the ones
due to exogenous factors related to the
In 2012 HytecAltoAmericas S.A.
was contracted by the Colombian
Hydrocarbon National Agency (ANH)
to conduct a remote sensing study in
the Vaupés-Amazonas and CaguánPutumayo Basins in southern Colombia,
over an area of approximately 280,000
km2. The objective of the survey was to
detect hydrocarbon prospective areas
using satellite, airborne and field remote
sensing technologies.
The remote sensing study comprised
different phases that were all carried
out during 2012. After the careful
selection of imagery data during the
acquisition phase, followed by the
effective preparation, processing and
interpretation of the spectral data,
a number of prospective oil and gas
exploration areas were identified.
The initial phase of the survey involved
the selection and acquisition of all the
ASTER, LandSat 7 ETM+, LandSat 5 TM,
LandSat 4, MODIS, SRTM, and PALSAR
imagery over the entire study area.
RADARSAT images were also acquired
over selected areas. A total of 767 images
were finally acquired after the careful
evaluation of over 13,000 images.
Preprocessing and processing
techniques were applied to the acquired
data during the second phase. These
included atmospheric corrections,
The project area in the Colombian Amazonia covered about 280,000 km2.
GEOExPro
September 2014
87
Exploration
geometric adjustments and georeferencing procedures during
the preprocessing stage, while geobotanical and geological
enhancements, structural filters, thermal calculations,
mineral, soil and vegetation indexes were calculated during
the processing stage. Both the Stressed Vegetation Index
and the Bleaching Index proved to be very useful in the
identification of areas of interest.
All processes and indexes were applied independently on
three previously defined spectral domains (each divided into
two regions) in the survey project area that bear different soil
and vegetation characteristics. This separation of domains
and regions allowed their consistent application and the
corresponding accuracy of the interpretation which was later
performed.
Interpretation of such products allowed the identification of
156 spectral target areas, categorized according to the weight
of their spectral, thermal and structural characteristics during
the third phase of the survey. Oil seeps registered in regional
databases were also taken into account after the interpretation
process for validation purposes.
Targets Validated
Spectral targets defined with satellite data were field validated
during phase four, which mainly comprised an intense
airborne hyperspectral survey over selected anomalies and a
ground spectral and geochemical survey over some of them.
The airborne hyperspectral data was acquired by means of
a radiometer mounted on a helicopter, flying approximately
330m above the ground. The decision to use a helicopter rather
than an airplane was a result of the high and extremely dense
cloud conditions of the region, which makes surveying with
airplanes almost impossible. Data was registered in 1,200
narrow bands between the ultraviolet (UV), visible (V), near
infrared (NIR) and short wave infrared (SWIR) portions of
the electromagnetic spectrum, with a 15 to 30m pixel size,
equivalent to the spatial resolution of the acquired satellite data.
The ground survey consisted of the acquisition of further
spectral data with a field spectrometer, concentrating mainly
on vegetation and soil samples. The latter were also collected
at specific areas of interest for geochemical analysis such
Validation of satellite spectral target areas suggested that 12% of the
targeted anomalies could potentially be hydrocarbon accumulations.
as Total Organic Content (TOC) evaluation. Pyrolisis was
performed on samples with TOC values over 0.9.
At this stage it is very important to recall the physiographic
characteristics and lack of logistics in the study area. Almost all
of the surveyed area is covered by a thick impenetrable vegetation
layer, roads are non-existent and gasoline and minimum lodging
infrastructure can only be obtained in a very small number of
towns or villages – not to mention the known security issues
of the region. Consequently, the field validation phase can be
considered a great success: almost half of the satellite spectral
anomalies were directly or indirectly field validated by means of
the hyperspectral helicopter and field survey program.
Satellite, airborne and field spectral data as well as the geo
chemical survey results were all integrated
A typical landscape in the Colombian Amazonia region – not an easy area to explore for
in a Geographic Information System (GIS)
hydrocarbons using traditional methods.
database for its final comprehension, analysis
and interpretation. As a result, the location of
prospective oil exploration targets within the
studied region was defined.
The hydrocarbon prospective targets
identified cover approximately 45,000 km2,
which represents 16% of the whole area.
The final weighting process after
field validation indicated that 12% of the
targeted anomalies showed characteristics
which were strong indicators of potential
occurrences of hydrocarbon accumulations.
Acknowledgment:
This article was prepared with the collaboration
of Carina Mouronte, Patricio Alcaín and Diego
Azcurra.
88 GEOExPro
September 2014
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GEOExPro
September 2014
89
History of Oil
The PESGB
Celebrates Its
50th Birthday
Rapid Growth
At this first meeting a few simple
objectives for the society were outlined.
Monthly meetings would be held,
providing a forum for explorationists
to meet and where eminent speakers
90 GEOExPro
September 2014
would be invited to lecture on geo
science and the geology of the North
Sea, with the new society stressing that
it was keen to encourage involvement
from academia and the service industry
as well as oil companies. To encourage
frank discussions, and save costs, the
talks would not be published. They also
determined that membership fees would
be kept at a minimum to encourage
all to join, and that it would be run
by a volunteer council, elected by the
members. Companies involved in oil
and gas were also encouraged to become
sustaining members of the organization,
and there are now about 80 companies
of all shapes and sizes registered in this
capacity.
Having formed the society, they
lost no time in getting active. The first
evening lecture meeting was held in
January 1965 in London, although there
is no record of the topic or speaker.
These soon developed into a monthly
feature, and Aberdeen-based lectures
were introduced in 1984; to date the
society estimates that it has hosted
nearly 800 evening lectures.
Being an organization primarily
consisting of geologists, field trips were
naturally high on the agenda. The first
one was conducted in 1965 along the
Devon and Dorset coast, to be followed
by over 180 more so far, to destinations
as varied as Svalbard and South Africa,
as well as classic UK locations.
From the 40 original delegates at the
first meeting in 1964, the membership
had grown to 224 members, four
honorary members and 18 sustaining
members by 1968, when the fees
were £1 for members and £10 for
sustaining members. Just five years later,
membership had doubled to 500 – and so
had the annual membership fee, to £2.
To update members, membership
directories and a newsletter were
distributed. The latter was originally
The Sea Gem, a converted barge, made the first hydrocarbon discovery on the UKCS, at West Sole in 1965.
©BP
After the discovery of the giant
Groningen Field onshore The
Netherlands in 1959 (see GEO ExPro
Vol. 6, No. 4), geologists’ eyes began
to turn westwards, wondering if these
amazing reservoirs could extend beyond
the coastal boundary, under the North
Sea and into British waters. And sure
enough, after a few seismic surveys
and some hasty law-making to define
the United Kingdom Continental Shelf
(UKCS), it was not long before the first
British gas field was found – West Sole,
discovered in September 1965.
Equally rapidly, the geoscientists
working in the North Sea realized
that they were sorely in need of data,
reference material and sources of general
information, not just about the geology,
but also of the experience of searching
for oil in such a hostile environment.
The first well in the North Sea was
spudded in December 1964, and in
the same month about 40 oil industry
professionals held a meeting in the
Westbury Hotel in the center of London
to discuss the formation of a professional
society concerned solely with the geology
and geophysics of hydrocarbons in the
North Sea; these guys were certainly
not hanging around! The majority of
the attendees had been exploring for
oil overseas, and many had been active
in societies such as the American
Association of Petroleum Geologists
and saw the importance of such
organizations for information gathering
and sharing. The delegates decided to
form a new society, to be called the
Petroleum Society of Great Britain – the
PESGB was born.
Formed just as the first discoveries were being
made in the North Sea, the Petroleum Society
of Great Britain’s mission is to promote,
for the public benefit, education in the
scientific and technical aspects
of petroleum exploration.
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History of Oil
just couple of typewritten sheets, but by
1986 it had developed into the magazine
with a range of features and articles that
members now receive, which is also an
important source of revenue through its
advertising.
In addition to the evening lectures, the
organization has built up a reputation
for running high quality, pertinent
conferences and seminars. These started
with the 1974 Petroleum Geology of
North West Europe Conference (the
PESGB was one of four organizing
bodies), which ultimately developed into
the seminal series of events commonly
known as the ‘Barbican Conferences’,
held about every six years. The PESGB is
also responsible for PETEX, the premier
regular geoscience meeting in the UK,
which it has been running biennially since
1989. Continually developing, the society
has more recently added PROSPEX to the
events list, held annually since the first
‘UK Prospect Expo’ in 2003.
Education was a keystone in the
foundation of the PESGB, not only
through lectures and conferences but
more directly through courses. In
1981 the organization joined forces
with the Geological Society of London
and Imperial College to form the Joint
Association for Petroleum Courses, which
ran courses pertinent to exploration,
given by a mix of academics and industry
veterans. These ran until 2001, but
in 2007 the idea was reintroduced by
the PESGB alone, initially running
the always popular ‘Introduction to
Karim Merle/PESGB
Conferences and Education
Hamish Wilson, President Elect (SLR Consulting), Oonagh Werngren, President (Oil & Gas UK) and
John Austin, Past President (OMV) taken at the President’s Evening 2013.
North Sea Geology’ course. Since then
it has organised several courses each
year, covering topics ranging from
‘Geophysics for Geologists’ and ‘Sequence
Stratigraphy’ to ‘Data Management’ and
‘Atlantic Margin Frontier Basins’.
A new development happened
in 2008, when funds were allocated
to sponsor students undertaking
petroleum geoscience-related M.Scs,
with seven students benefiting that first
year, and 81 in total to date.
Onwards and Upwards
The PESGB has continued to evolve and
grow through its 50-year history, but has
remained close to those core objectives
set out at the first meeting. In 1985,
PESGB
The committee of the newly formed PESGB in 1966.
92 GEOExPro
September 2014
with 1,600 members and a new branch
based in Aberdeen recently opened, the
organization established a permanent
office and staff; until then, it had been
run entirely by volunteers. Always nonprofit-making, it is now a registered
charity, with attendant financial benefits
for both the society and its members.
But the most significant change
is probably the way in which the
organization has progressed from being
inward-looking, working purely for the
members, to being involved in outreach
and general education beyond the
O&G industry, promoting geoscience
in schools and education, as well as
the masters sponsorship program.
The annual Bob Stonely lecture series
is another example of outreach: open
to all, it asks well-known people, not
necessarily geologists, to explain the
benefits and relevance to them of the
scientific and technical aspects of
petroleum exploration.
However, it is not all serious stuff.
The members are a lively community,
and the social and networking aspect
has always been very a important and
popular side to the PESGB, as can be
testified by anyone who has gone on
the euphemistically described ‘evening
excursion’ (aka pub crawl) during
PETEX.
So congratulations to the PESGB,
keep up the good work and we look
forward to the next 50 years!
Industry Issues
AAPG Distinguished Lecturer Terry
Engelder assesses the history behind
European bans on fracking.
During a recent trip to Europe as part of my AAPG
Distinguished Lecture Tour, my most popular lecture proved
to be an analysis of the fracking debate ‘The Environmental
Realities of Hydraulic Fracturing: Fact versus Fiction’ –
unsurprising considering the sensitivity to the prospect of shale
gas exploration in much of the continent. My objective was to
address the public fears that drove moratoria on fracking in
places as different as New York, the UK, and France.
Central causes of public fear in America were a
combination of early mistakes by industry and purposeful
disinformation from activists, especially those seeking to
San Leon Energy
Fracking in action at Lewino in the Northern Baltic Basin in Poland, one of
the few countries in Europe with an active shale gas exploration program.
94 GEOExPro
September 2014
profit from such anxieties. This fear has now spread beyond
America to places with nothing more than a modest gas
industry experience.
My ‘environmental realities’ lecture was a clash between
the recalcitrant notion that the worst will happen when the gas
industry shows up and my American optimism that gas can
be produced at maximum benefit and minimum risk. Several
people stated that Europeans do not want fracking until they
are sure it is safe. While everyone wants a safe industry, safety is
never absolute. In Pennsylvania, for example, where more than
1,000 people are killed annually in automobile accidents, only
a handful have died in fracking related accidents since the start
of horizontal drilling in 2006. Yet a poll among Pennsylvanians
would probably identify driving as the safer activity!
The lecture started with a discussion of my research on
natural hydraulic fracturing in gas shale dating back to the
1970s, which was concurrent with both the first horizontal
drilling of shale source rocks and the initial use of massive
hydraulic fracturing in the US. Although both techniques date
back 35 years in the USA, none of this early work on fracking
made much of an impression on the public.
Risks and Rewards
The process by which fracking entered the general
consciousness may have started about 2007 with my
calculation of the technically recoverable reserves in the
Marcellus gas shale of the Appalachian Basin. In late 2007 I
went to the news media with my results, receiving a great deal
of public attention. At that time the term fracking was not
part of the English language; within two years it had become
shorthand for gas extraction by horizontal drilling and high-
John Beale
volume hydraulic fracturing, and most people now
know what fracking is.
In Europe, I was frequently asked, “How can you be so
certain [about fracking]”? My American optimism must
have been shining through, because I point out in the
lectures that shale gas comes with risk along with reward.
As Voltaire said: “Doubt is not a pleasant condition, but
certainty is absurd.” Science is not capable of certainty
beyond having a sense of when others are mistaken.
As the automobile fatalities example shows, people
don’t do a very good job of normalizing risk. When asked
for absolute numbers on risk, all I can do is point to the
millions of hydraulic fracture treatments and stimulations
undertaken already, resulting in a modest number of
examples of groundwater contamination from subsurface
sources, virtually all from methane leaking along the
cement-bedrock contact inside a borehole. Risks outside
methane leakage come from poor surface management of
fluids in the form of spills and leaks.
Air quality is at risk and ultimately, burning methane
leaves a carbon footprint. These are concerns. The
leaks need to be found and fixed – but replacing coalfired power plants with natural gas led to a significant
reduction in America’s carbon footprint over the past
five years, according to the EIA. This good news does not
mean that mankind should discontinue its march toward
a larger renewable energy portfolio.
Terry Engelder is Professor of Geosciences at Pennsylvania State University and a
leading authority on the Marcellus gas shale play.
A Number of Mistakes
Industry was responsible for six major ‘mistakes’ during the
early days of high-volume horizontal hydraulic fracturing in
the Appalachian Basin. I use the term mistake, because each
might have been anticipated, but only by someone with great
clairvoyance. None was a manifestation of single events like
the engineering carelessness of the Macondo well blowout.
However, they did create a breeding ground for amplifying
public fear of the unknown.
Arguably, the most serious one was the failure to
establish baseline water chemistry before drilling
campaigns. Many chemical elements, (e.g. iron, magnesium,
potassium) and compounds (e.g. methane) are dissolved in
drinking water, but when water chemistry is measured after
the arrival of industry, there is a belief that these chemicals,
particularly methane, result from drilling.
Traditionally, the first oil wells in a region were drilled where
oil is leaking to the surface. Methane was there all along but
industry failed to present these details to the public prior to
drilling. Pennsylvania, for example, had a long history of flaming
faucets and bubbling stream beds, although the gas was not
usually concentrated sufficiently in groundwater to manifest
itself in drinking water. Intensified drilling in 2008 produced
a heightened sensitivity to methane in groundwater, but with
no baseline, it was impossible to know whether and how much
methane resulted from this drilling. Pennsylvania law held
operators responsible for the methane in groundwater within
1,000 ft of a gas well, regardless of whether it was their fault.
The second industry mistake involved the extent to which
casing was cemented. Early on, surface and intermediate casing
was completely cemented but as much as 5,500 ft of open hole
was left outside the production casing, as traditionally done in
www.octio.com
GEOExPro
September 2014
95
Industry Issues
Secrecy and Earthquakes
The use of air-drilling to penetrate the vertical legs of
Marcellus gas wells was another error. The pressure of air
blowing into more permeable aquifers was sufficient to drive
methane towards nearby water wells. It also increased the
natural turbidity in groundwater, which often worries people.
A fourth mistake was to lobby for elements in the Energy
Policy Act of 2005 that allowed fracking companies to keep
their additives proprietary. The public feared that groundwater
would become contaminated by unknown, possibly toxic,
chemicals, and wanted to understand exactly what and how
much was being pumped into the ground. There was also the
(inaccurate) perception that this act exempted the industry
from Clean Water and Clean Air Acts. The industry elected
to reveal the details of additives on a website, ‘Frac Focus’,
and, while posting volume and chemical composition was
voluntary, most operators in the Appalachian Basin have
joined in an attempt to become more transparent.
The industry disposed of flowback in large enough volumes
to trigger minor earthquakes in Ohio and Texas, which
naturally played into the public fear. Water under pressure
flowing along faults reduces the frictional strength sufficiently
to cause slip; triggering a large earthquake by injecting water
was even the plot of a James Bond movie. USGS studies
confirmed that there is a relationship between the injected
volume of water and earthquake size, but showed that it was
not possible to trigger a destructive earthquake with the
amount of water used during fracking – incidentally proving
the implausibility of the James Bond plot.
The sixth mistake involved management issues associated
with potentially leaking open pits, leading to the fear that
Chart showing
2013 unproved
wet shale gas
technically
recoverable
resources for
selected European
countries.
groundwater could be contaminated if a lined pit was
punctured or seals failed. Presently, only fresh water is stored
in open pits. Any flowback is contained in enclosed frack
tanks where the chance of leaking is near zero.
Purposeful Disinformation?
Public anxiety arising from these very real mistakes was easily
manipulated and magnified by activists who either did not
know better or sought to profit by playing to this fear. The
most egregious case of purposeful disinformation being used
to manipulate the public is found in the closing scene of the
movie, ‘Gasland’, where a tap is lit. The owner’s water well was
drilled though a coal bed giving off methane, and the film’s
producer admitted knowing that the methane had nothing to
do with fracking.
Public fear can also be manipulated by famous people.
Movie star, Matt Damon, was quoted as saying that ‘Everyone
knows that fracking poisons the water and air’, adding that
fracking, ‘…tears apart local communities and subverts
democracies….’ Yoko Ono was quoted in the media as
stating categorically that, ‘Fracking kills’. Subsequently,
signs declaring that fracking kills have shown up regularly at
protest rallies in many places worldwide.
The most common prop at protest rallies has been the jug of
rusty, brown water – easily transported and, unlike the flaming
faucet, looking nasty enough to amplify fear of fracking. Rusty,
brown water is a natural product of the oxidation of dissolved
iron. Tests suggest that nearly half the water wells in parts of
Pennsylvania have enough dissolved iron in the groundwater to
make it turbid when exposed to atmospheric oxygen, a process
accelerated by pumping wells dry. In fact, the US EPA tested
one water well repeatedly and found the water safe to drink.
Later, the owners admitted pumping their water well dry to
supply turbid water when visitors came knocking.
In summary, public pressure was largely responsible for
political decisions to place moratoria or bans on fracking. In
a sense, industry was directly responsible for these political
decisions because of early mistakes, making it easy for
activists using purposeful disinformation to further cement a
negative public position relative to fracking.
17
8
32
128
137
10
26
51
26
148
96 GEOExPro
September 2014
17
Bulgaria
Denmark
France
Germany
Netherlands
Poland
Romania
United Kingdom
Sweden
Ukraine
Spain
Source: EIA/ARI
sparsely populated parts of the country with few water wells
near gas wells. This is fine if the overburden section is not gas
charged – but in north-eastern PA the overburden contains
Upper Devonian coals, full of methane gas, which flowed into
the open holes and in some cases likely increased groundwater
concentration by leaking along poorly cemented gas wells.
Industry no longer leaves open-hole production casing, at least
below the intermediate casing string.
GEO Cities
Khanty
Mansiysk:
Oil, Sport and
Woolly Rhinos
Khanty Mansiysk may be a very long
way from anywhere, but it is a rapidly
developing city with a growing cultural
and sporting reputation.
ELEANOR ARCHER
Gazprom
Khanty Mansiysk lies seemingly in the middle of nowhere, the
capital of a hilly region the size of France called the Khanty
Mansi Autonomous Okrug, in Siberia. Human habitation in
the area dates back 4,000 years, as evidenced by well-preserved
Stone and Bronze Age monuments. It is built on seven hills,
and is dominated by the river Irtysh and its tributaries. The city
experiences a subarctic climate, with extremes of temperature
as low as -49°C, causing the rivers and lakes to freeze for most
of the year in long, severe winters. It stands far away from the
large metropolitan cities, being 2,500 km from Moscow, and
even further from St. Petersburg. Even the nearest train station
is four hours drive away from Khanty Mansiysk.
And yet, this small city is fast becoming a modern center
of Russian business, sport and tourism. Its population has
more than doubled since 1989 to nearly 90,000 people, and
98 GEOExPro
September 2014
with this growth the city has changed
tremendously. It has become an alpine
centre of importance as an annual site for
Biathlon World Cup competitions, a winter
sport that combines cross-country skiing and rifle
shooting. It also held the 2010 Chess Olympiads, the largest
international chess team tournament in the world. Events such
as these bring in tens of thousands of tourists, who flock to the
city from all around the world.
An Oil City
The source of this economic growth in a small Siberian city
far away from larger populations is, of course, entirely due to
the discovery of oil in the region. The greater Khanty Mansi
Autonomous Okrug region contains around 70% of Russia’s
developed oil fields, about 450 in total, including Samotlor,
which is the largest oil field in Russia and the sixth largest in
the world. Gas was first found in the region in 1953 and oil
began to be produced in 1960, and the region now contributes
over 50% of total Russian oil production.
Khanty Mansiysk is home to the ostentatious headquarters
of the country’s main oil giants, including Rosneft, Lukoil
and Gazprom-Neft. Enormous drilling towers protrude from
the birch forests, while gas flares blaze over the treetops, and
roads and pipelines cut through the landscape. Around 90%
of the city’s economic production is directly dependent on the
oil industry, and everything thrives as a result of it. Even the
art gallery exists only because of oil, with small plaques next
to the paintings purchased from Moscow and St. Petersburg
identifying sponsors such as Rosneft and Lukoil.
Gazprom is one of many Russian
oil and gas companies with
flamboyant new headquarters in
Khanty Mansiysk.
As well as the annual sporting events, the city also contains
multiple places of interest for tourists, including the glittering
gold domes of the Church of Christ’s resurrection. It also
holds museums on art, such as the artist Gennady Raishev’s
gallery; the Geology, Oil and Gas Museum, which traces the
history of Western Siberian oil and gas development; and
an open air Archeopark, which has bronze sculptures of
Pleistocene animals like mammoths and woolly rhino. The
park is located at the foot of a hill known as Samarovsky,
which is composed of Eocene sediments, usually buried at
greater depth in this area. Its origin is a matter of controversy,
but it is possibly a larger erratic, deposited here at the edge of
an icesheet during the Pleistocene.
Many would argue that this flourishing
city and the oil and gas it provides for
the rest of Russia and beyond comes at
a heavy cost through the destruction
of the environment and damage to the
indigenous people who lived on it for
thousands of years. The people native
to the region are the Khanty and the
Mansi, who survive off the land through
fishing, hunting and reindeer herding.
They traditionally migrate around the
area with the seasons, from winter
settlements to seasonal hunting grounds.
However, since the growth of the oil
industry in the region, the livelihoods
of these peoples have been affected. The
land is owned by the state, and therefore
vast areas of forest used by the Khanty
and other tribes for building settlements
and canoes have been cut down or burnt
in order to make way for the construction
of roads, housing for workers and
pipelines. Endless Siberian forests that
The Samotlor Field, located at Lake Samotlor in Nizhnevartovsk district, is one of the fields which has
led to the development of the Khanty Mansiysk region. It is the largest oil field of Russia and the sixth
biggest in the world and was believed to hold 55 billion barrels of oil in place when discovered in 1965,
but now is probably 80% depleted.
Vladimir Melnikov/Dreamstime.com
A Heavy Cost?
used to provide Khanty families with all they needed have
shrunk into small reservations that are officially called ‘Areas of
Traditional Nature Use’.
As well as this, oil spills are affecting the environment.
Dilapidated Soviet-era infrastructure has meant that, as of
January 2010, the Ecology Department of Khanty Mansiysk
Autonomous Okrug registered 4,979 accidents, including
2,417 oil pipeline failures. The total pollutant mass in the
environment amounted to 5781.4 tons. The region’s biggest
river, the Ob, alone releases 125,000 tons of crude oil into the
Arctic Ocean annually, according to Greenpeace. As a result
of this oil in the natural environment, the rivers and soil
can no longer so successfully supply the fish, vegetation and
grazing grounds the indigenous tribes need to survive.
GEOExPro
September 2014
99
Exploration Update
The world’s most significant discoveries brought to you by IHS and GEO ExPro
Ophir energy
Tanzania:
Third LNG Train Likely?
The partnership of BG (operator) and Ophir has confirmed an
important new gas discovery in deepwater Block 1, Tanzania.
Drilled using the ‘Deepsea Metro 1’ drillship, the Taachui
1ST well, close to the western boundary of the block, was
sidetracked for operational reasons and was drilled to a total
depth of 4,215m. The well encountered net gas pay of 155m
within Lower Cretaceous clastics as expected, while the gross
column reached 289m. It flowed gas at a stabilized rate of 14
MMcfpd and mean recoverable reserves are estimated at 1
Tcf. The size of the gas column is such that the discovery could
extend into a second compartment to the west, which has the
potential to be of a similar size. An appraisal well to confirm
this upside is under consideration by the JV partners.
The result extends the proven hydrocarbon system to the
eastern limit of, and partly de-risks, Ophir’s East Pande permit
on which the Tende 1 well will be drilled in 680m of water
later in 2014. In addition, the aggregate recoverable volumes of
around 16.7 Tcf are now approaching the threshold needed to
underpin a potential third LNG Train from Blocks 1, 3, and 4.
A drilling success at Tende would de-risk two further prospects
within the block, Balungi and Ndimu, which could add almost
2.5 Tcf of natural gas reserves in the Block.
On the downside, Tanzania’s hopes of becoming an exporter
of natural gas face fresh delays after the country’s opposition
refused to participate in further talks to rewrite the constitution.
The delay prolongs the constitutional uncertainty over whether
the semi-autonomous government of Zanzibar can sign its own
exploration deal and thus secure all the revenues. The country
was due to put a new constitution to a popular referendum next
year but the opposition boycott and several missed deadlines
mean the new law is unlikely to be approved before presidential
elections scheduled for October 2015.
Pakistan:
First Discovery in Eastern Potwar Plateau
The Ghauri Joint Venture (GJV) is
claiming a ‘landmark achievement’
with its Ghauri X-1 well, located in
district Jhelum, Punjab Province in
Pakistan, as it is the first hydrocarbon
discovery in the eastern part of the
Potwar Plateau. To date seven wells have
been drilled in the license area without
success. GJV comprises Mari Petroleum
Company with 35% working interest as
operator, as well as Pakistan Petroleum
Limited (PPL) and MOL with 35% and
30% working interests respectively.
Drilled to a total depth of 3,990m,
Ghauri X-1 flowed 23° API oil through
a 32/64” choke from the Sakessar
Formation at an average rate of 1,193
bopd, which increased to 5,500 bopd
after acid treatment, ranking it as one
of the country’s top oil-producing wells.
Based on initial evaluation of this well test
MOL believes the potential for this part
100 GEOExPro
September 2014
of the Ghauri Block could be significant,
although needing further evaluation. The
partners have assigned in place reserves
of 22 MMb to the Sakessar Formation,
declaring that as they progress the
development of the secondary
reservoir Kussak Formation,
they will develop a better
understanding of the estimated
reserves within the Ghauri Block.
Pakistan appears still to
have good potential to increase
domestic production of
hydrocarbons. IHS GEPS studies
suggest that there are 3.6 Bbo
and 66 Tcf of natural gas yet to
be discovered in the country.
However, investment in the
sector by foreign companies has
been undermined by security
challenges from militant groups
operating in Balochistan
province. Foreign investors have
tended to avoid blocks in that province,
preferring more secure and lower-risk
acreage in more established areas in
Sindh or Punjab provinces.
Reduce
uncertainties
Gabon:
in seismic processing
and interpretation
Some Hope
for Gas
Eni has made a significant gas and
condensate discovery with an exploration
well testing the Nyonie Deep prospect
in Block D4, approximately 13 km from
the coast and 48 km from Libreville,
the capital of Gabon. The discovery
was made in the pre-salt layer of Gabon
through the Nyonie Deep 1 well, which
was drilled to a depth of approximately
4,313m in shallow water. The well
encountered a 320m thick hydrocarbonbearing section in the pre-salt clastic
sequence of Aptian age. The structure,
which extends over an area of more
than 40 km2, extends into Block D3, also
operated by Eni. Preliminary estimates
suggest hydrocarbons in place could
amount to 500 MMboe.
This is the third field to be discovered
recently in shallow waters in such plays,
after Nene Marine and Litchendjili
Marine offshore Congo. According to
Eni, the total estimated potential of these
discoveries is about 3 Bboe.
Recent years have seen an explosion
of interest in the highly prospective
West African Transform Margin, but an
uptick in exploration offshore Gabon has
yielded mixed results. Although Gabon’s
deepwater potential offers significant
upside, a string of disappointing drilling
results may dampen interest in expensive
exploration campaigns. In addition,
the absence of a clear investment plan
to capture and monetize gas precludes
any significant increase in production.
Harnessing gas will require infrastructure
which the country lacks, and at this
time the commerciality of the country’s
offshore gas resources is questionable.
International
Expertise in
Geological &
Geophysical
Services
ENVOI specialises in upstream
acquisition and divestment (A&D),
project marketing and portfolio advice
for the international oil and gas industry.
in Europe, Africa
and Middle East
ACTIVE PROJECTS
CENTRAL EUROPE
(Field redevelopment)
CAMEROON
(Onshore exploration)
GREENLAND
(Offshore exploration)
KENYA
(Exploration)
TUNISIA
(Offshore appraisal/development)
UK: EAST MIDLANDS
(Onshore appraisal/development)
Manuel Dohmen/wikipedia
The coast of Gabon near Libreville
VISIT WWW.ENVOI.CO.UK
FOR MORE INFORMATION
www.prospectiuni.com
GEO Media
The Secret World of Oil
The Secret World of Oil (2014)
Author: Ken Silverstein
Verso Books
Dodgy practice in the oil industry may appear to be a ‘yawn,
yawn’ subject – don’t we all know that companies lobby and
pay into campaign funds? And aren’t the excesses of oil-rich
dictators well documented elsewhere? That may be so – but
Silverstein’s skim through the world of fixers, traders and
lobbyists manages to bring new detail, most notably to the
under-discussed activities of the Swiss-based commodity
houses. Although the book sometimes lacks direction or
depth, Silverstein’s personal encounters with individuals do
shed light, providing some fascinating insights and views on
how the industry is adapting to regulatory challenges.
The Changing Role of Fixers
So, oil deals are run by fixers, the state-less
few dozen middle men who live charmed
lives, enjoying the confidence of presidents,
oil executives and hedge fund managers.
Their role is to do the business that oil
companies either don’t want to know about,
or can’t: they make the deals and take
their cut. No surprises – but still many of
Silverstein’s encounters prove illuminating.
As one such fixer, Gulbenkian, explains,
the modus operandi is changing. It used to
be simple – the company seeking an energy
concession passed money to the fixer who
took his cut and funneled the rest into
Swiss bank accounts belonging to various
officials. Hey presto – the company got their
contract.
However, the modern pay-off has become more complex
as states have implemented anti-bribery measures. Suitcases
of money have, partly, been replaced with stock market tips
and contracts to buy over-priced assets owned by inner-circle
family. “I spent 99% of my time trying to figure out ways to not
technically violate the FCPA (Foreign Corrupt Practices Act),”
complains one former Mobil executive based in Angola. Fixers
are themselves likely to be buying and selling concessions.
Human Cash Register
One gets the impression that, despite his ill-concealed disgust,
Silverstein is not immune to the awe inspired by some of these
figures – indeed, he admits to being an ‘unlikely friend’ to Ely
Calil, one of the ‘anonymous’ elite (although where this book
leaves their friendship, the reader can only wonder).
His contempt is pure and unadulterated, however, when
it comes to Tony Blair with his paid friendships in the ‘dark
landscape’ of the Caucasus. “Few have donned the pom-poms
with as much vigour,” asserts Silverstein, making Blair a
‘human cash register’. As the man who, post 9/11, declared
102 GEOExPro
September 2014
NIKKI JONES
there were ‘no more excuses for dictatorship and corruption’
and was the prime mover behind the Extractive Industries
Transparency Initiative, he now heads a ‘complex, deliberately
opaque corporate structure’, and profitably amalgamates his
roles of Middle East peace envoy, private paid speaker and
door-opener for his various employers. Silverstein’s wrath for
Blair is only exceeded by his derision for Neil Bush, brother of
George, who likewise has joined the ‘con artists and hangers
on’ that feed off the industry – though quite ineffectually.
Geneva Bandits
With more skim than detail, Silverstein’s search-light reaches
Geneva and the relatively under-documented role of the Swiss
commodity houses – Vitol, Mercuria, Gunvor, Trafigura and
Glencore, once all private companies and therefore not subject
to corporate disclosure laws. Silverstein
poses the question of why Glencore chose
to float in 2011: the answer appears to be
not only the unimaginable wealth that
came to its senior executives, but the funds
generated for mergers with companies
such as Xstrata. This has enabled Glencore
to lead the pursuit of the common goal
of vertical integration, the ownership of
a spectrum of assets from production
to refining to shipping. This allows huge
‘leverage of information’ in trading, giving
the commodity houses the ability to
move ahead of the markets on correlated
commodities and currency swings.
Interestingly, another reason given for
Glencore’s coming out of the shadows
is that ethics are improving. The days
of sending rust-buckets to Africa are coming to an end,
according to one trader, since Western banks (though not
Eastern) have tightened up on their lending and are asking
more relevant questions. Personal morals remain unaffected,
apparently. “We’re all bandits here,” says one Geneva trader,
“You’re accepted as long as you bring a lot of money.”
The universality of corruption is brought home in the
chapter on Louisiana, America’s third largest energyproducing state that ranks close to the bottom in key
development statistics. ‘Legacy lawsuits’ abound, with
landowners attempting to get compensation for contaminated
land while the industry fights to keep cases with the regulators
that they control. The fact that this is a Republican-Republican
battle adds ‘edge’.
“Americans want their gasoline cheap,” shrugs Ely
Calil. Silverstein offers no coherent argument against this
justification of underhand practice: the book is, unfortunately,
somewhat random in its selection of targets and occasionally
hard to follow. But for those who want to understand the
secret world of oil, Silverstein definitely adds a few more
pieces to the jigsaw.
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Q&A
Delighting in Geophysics
Dr. Thomas A. Smith founded Seismic Micro-Technology (SMT) in 1984 and led the development
of the widely adopted Kingdom Suite software suite for seismic interpretation. He went on to found
Geophysical Insights in 2008, which launched Paradise™ at SEG 2013.
Why did you launch Geophysical
Insights after the sale of SMT? Wasn’t
it time for a break?
The work at SMT was thoroughly
enjoyable, particularly generating new
ideas and developing new technology,
so after the sale of SMT it seemed
quite natural to continue. I jumped
into geophysical research with delight.
Geophysical Insights was launched
to develop the next generation of
interpretation technologies, a result of
some of that research. We recognized
that there was an opportunity to make
a contribution to the industry. Response
has been good, with a substantial
number of people expressing a great
interest in these new ways to conduct
seismic interpretation.
Here’s why: today we have more data,
a greater variety of play concepts, and
often less time for interpreters to analyze
prospects. In particular, the number of
seismic attributes available is now in
the hundreds. Witnessing this growing
body of information, several years ago
M. Turhan Tanner (see GEO ExPro
Vol. 3, No. 4), Sven Treitel and I began
collaborating on the premise that greater
insight may be extracted from the seismic
response by analyzing multiple attributes
simultaneously. We recognized that
advanced pattern recognition methods
were being used in many applications
outside geoscience that could be adopted
to address what we saw as an opportunity
to advance the geoscience for exploration
and production. Our thoughts on the
opportunity were put forward at a 2009
SEG workshop entitled ‘What’s New in
Seismic Interpretation’ in a presentation
called ‘Self Organizing Maps of Multiple
Attribute 3D Seismic Reflections’.
Tell us about the advanced geoscience
analysis software platform, Paradise.
Paradise is an off-the-shelf analysis
platform that enables interpreters
to use advanced pattern recognition
methods like Self-Organizing Maps
and Principal Component Analysis
104 GEOExPro
September 2014
through guided workflows. In 2009
we organized a team of interpretation
software specialists, geoscientists, and
marketing professionals to develop
an advanced geoscience platform that
would take full advantage of modern
computing architecture, including large
scale parallel processing. Today, Paradise
distils a variety of information from many
attributes simultaneously at full seismic
resolution, i.e. operating on every piece of
data in a volume. This is one of the many
differences in the application of machine
learning and pattern recognition methods
available in Paradise.
What is your perspective on the
interpretation needs of unconventional
compared to conventional resources?
Both types of plays have their
respective challenges, of course. Our
work at Geophysical Insights is evenly
divided between conventional and
unconventional resources; however, there
is growth in the use of seismic among
E&P companies in unconventional plays.
Systematic drilling programs are now
being augmented more often by seismic
interpretation, which is reducing field
development costs by optimizing drilling
and development. There is also growing
recognition of what are termed ‘complex
conventionals’, like carbonates – a
geologic setting that requires advanced
analysis for the characterization of
carbonate reservoir rocks.
Where do you see the next big
advances in geophysics?
While traditional interpretation tools have
made extensive use of improvements in
interpretation imagery, their analysis has
been largely qualitative – an interpretation
of visual imagery on a screen. Certainly,
qualitative interpretation is important
and will always have a place in the
interpretation process. We see the next
generation of technologies producing
quantitative results that will guide
and inform an interpretation, thereby
complementing qualitative analysis.
Improvements in quantitative analysis
will help interpretation add forecasting to
prediction.
Do you think these advances will come
from industry or academia?
Bright people and ideas are everywhere,
and we must be open to solutions
from a variety of sources. Technology
breakthroughs are often an application
of existing concepts from multiple
disciplines applied in a whole new way.
I believe that fluid, inter-disciplinary
teams, enabled by advanced technology,
offer an excellent organizational model
for addressing the complex challenges
of monetizing hydrocarbons in
challenging geologic settings.
Where will these advances originate?
While the U.S. has emerged as a leader
in O&G production due in large part
to the development of unconventional
resources and the application of new
technologies, regions outside of the U.S.
are beginning to develop these too. It is
reasonable to expect that universities and
companies in these regions will generate
many new technologies, which will be
essential to supply the growing demand
for hydrocarbons worldwide. I applaud
the next generation of geoscientists and
hope that they enjoy the work of our
industry as much as we do.
the geologist’s toolkit
Understand
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What are the relationships between source,
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When and how did deformation occur
and to what extent?
Fracture & Stress Module
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Hot Spot
Phoenix South-1 in the
Offshore Canning Basin
breaks Australia’s oil drought
DAVID UPTON
An Apache-operated wildcat in the
frontier Offshore Canning Basin has
broken a 15-year drought in major oil
discoveries in Australian waters.
The Offshore Canning Basin sits
between the Carnarvon and Browse
Basins off Australia’s north-west coast.
Remarkably, only a dozen or so wells
have been drilled in the basin since
exploration began in the 1960s, despite it
being nestled between two of Australia’s
most prolific petroleum basins.
Apache announced on 18 August
that its shallow water Phoenix South-1
exploration well in permit WA-435-P,
180 km north of Port Hedland, had
intersected at least four discrete oil
columns ranging in thickness between
26m and 46m. It made a preliminary
estimate of 300 MMbo in place.
It is the first major offshore oil find
in Australia since 1999, when Woodside
Petroleum established a new deepwater oil
province off the North West Cape, about
600 km further south in the Carnarvon
Basin. Apache and its partners Carnarvon
Petroleum (20%), Finder Exploration
(20%) and JX Nippon (20%) had actually
targeted gas at Phoenix South-1, based
on the results of two nearby wells drilled
by BP in the early 1980s. However, the
discovery of oil has heightened suspicions
that BP misdiagnosed what it had found
with its first well, Phoenix-1, in 1980,
when it ran into problems and was unable
to recover samples or conduct a drillstem
test. It found hydrocarbons over a large
column, but without the ability to conduct
a proper test concluded it merely had
gas shows. A second well, Phoenix-2,
was drilled in 1982, but the reservoir
quality was poor and the BP campaign
ended. The Apache team and geologists
at Carnarvon Petroleum, which identified
106 GEOExPro
September 2014
the prospect and led a farmout to Apache
and JX Nippon in 2012, are now going
back to the BP drill results to see how well
they match with the new discovery.
New Oil Play
The discovery has caused a lot of
excitement in the Australian upstream
industry, and not just because oil discov
eries have been so few and far between.
Phoenix South-1 has uncovered an
entirely new oil play in the Lower Triassic
Keraudren Formation, and is the only well
in the history of the Offshore Canning to
successfully test this sequence.
More importantly, Phoenix South-1
has busted a long-standing myth that the
Outer Canning Basin is not prospective.
Previous explorers had tried to import
the exploration model that worked so
well next door, targeting reservoirs in
younger Triassic and Jurassic rocks. In
the Carnarvon Basin and Browse Basin,
this approach had yielded giant gas fields
that support most of Australia’s west
coast LNG projects.
When previous explorers failed
they concluded the Outer Canning had
simply missed out on the rich petroleum
endowment that blankets the rest of
Australia’s north-west continental shelf. It
was an easy conclusion to make because
the Outer Canning is something of an
oddity. Its neighbors on either side share
broadly the same structural setting and
depositional history from the separation
of India from Australia. However, the
Outer Canning had distinct differences,
despite being wedged in the middle.
Boost for Companies
The Phoenix South-1 is a much-needed
boost for Apache, which has a long
history of success in Australian waters but
recently flagged a sell-off of its Australian
assets due to investor pressure back in the
US. It also sent Carnarvon Petroleum’s
share price soaring.
Another beneficiary of the discovery
is Woodside, which followed Carnarvon
Petroleum into the Offshore Canning
and has since made a huge plunge
into the frontier with Shell. The joint
venturers conducted Australia’s
largest offshore 3D seismic survey in
the Offshore Canning in 2011, and
committed to an eight-well wildcat
program. The first well of a two-year,
$US442 million contract, Hannover
South-1, is due to spud in the current
quarter.
Meanwhile, Apache and its partners
are still unwrapping the good news from
Phoenix South-1. Side-well cores will be
assessed as soon as possible to provide
definitive data on the quality of the
reservoirs. Apache has already taken up
an option from Carnarvon Petroleum
and Finder Petroleum for a 40% stake
and operatorship in neighboring permits
WA-436-P and WA-438-P. It has also
committed to drill a second well next year
at a larger prospect known as Roc, closer
to the coastline in permit WA-437-P. The
Keraudren Formation is shallower and
less compacted at Roc, and is also believed
to be sandier as it moves inboard. It will
be one of the most anticipated wells in
recent Australian history.
Carnarvon Petroleum
New Oil
Play Excites
Australia
Dampier Sub-Basin Australia
North West Shelf Multi-Client 3D Data
Polarcus is pleased to announce the planned acquisition of 9,400 sq. km of new multi-client 3D seismic data
over the Dampier Sub-Basin on Australia’s North West Shelf. The majority of the large structures within the Basin
have been drilled, and the exploration effort is now moving towards the more subtle traps with a stratigraphic
component that require very high quality 3D data to resolve. The Rosemary 3D survey will be acquired using
Polarcus’ RIGHTBAND™ seismic acquisition technology and processed through to Pre-Stack Depth Migration
by DownUnder GeoSolutions in Perth through a flow that includes DUG Broad to remove the source and receiver
acquisition ghosts. These new high bandwidth, high resolution broadband 3D data will significantly enhance the
imaging of complex reservoir geometries and the resolution of thin reservoir units. This will allow de-risking of
existing prospects, unlocking of previously unrecognized stratigraphic traps and aid in the identification of
by-passed hydrocarbons within Australia’s prolific oil & gas producing fairway.
Stephen Doyle
[email protected]
+971 4 4360 961
www.polarcus.com/mc
Global Resource Management
Oil is Still
in the Lead
Conversion Factors
Crude oil
1 m3 = 6.29 barrels
1 barrel = 0.159 m3
Oil is still our largest energy provider. And while fossil
fuels predominate, renewables have a long way to go
before they can make a considerable impact.
1 tonne = 7.49 barrels
Natural gas
Total energy consumption increased a little in 2013 compared to 2012, and fossil
fuels (oil, gas and coal) now have a market share of 87%. Oil is still the favorite
source of energy – 33% of energy consumption came from the black liquid.
Contrary to the belief of many environmentalists, world oil production was
higher than ever in 2013. With an average output of 86.8 MMbopd, last year saw an
increase of 0.6% compared to 2012. Ten years ago the average daily production was
only 77.6 MMbopd.
On top of that, “the year 2013 saw an acceleration in the growth of global energy
consumption, despite a stagnant global economy”, as stated by Bob Dudley, BP
Group Chief Executive.
Nevertheless, there was a 16% increase in consumption of renewables (not
including hydroelectricity) compared to the year before, and that consumption has
doubled in less than five years. The number is, however, still small, as renewables
only account for 1.5% of world energy consumption. “The importance of policy is
also apparent in the strength of renewable forms of energy, which continued to
grow robustly, albeit from a low base,” as explained by Dudley.
Three countries dominate world oil production. Together, Saudi Arabia (11.5
MMbopd), Russia (10.5 MMbopd) and the United States (10.0 MMbopd) produce
more than a third of the total. China ranks as number 4 on the list with 4.2 MMbopd.
Norway and the United Kingdom produced 1.837 and 0.866 MMbopd respectively,
ranking them at numbers 15 and 25 in the world. Amongst the European countries,
Norway, UK and Denmark (0.178 MMbopd) are leading producers.
Halfdan Carstens
World energy consumption by energy type. Fossil fuels predominate, by far, and in spite of a 16%
increase in 2013, renewables are – with only 1.5% (not including hydroelectricity) – still a minor
source of energy.
4000
3500
3000
1 ft3 = 0.028 m3
Energy
1000 m3 gas = 1 m3 o.e
1 tonne NGL = 1.9 m3 o.e.
Numbers
Million = 1 x 106
Billion = 1 x 109
Trillion = 1 x 1012
Supergiant field
Recoverable reserves > 5 billion
barrels (800 million Sm3) of oil
equivalents
Giant field
Recoverable reserves > 500
million barrels (80 million Sm3)
of oil equivalents
Major field
Recoverable reserves > 100
BP Review of World Energy 2013
4500
1 m3 = 35.3 ft3
million barrels (16 million Sm3)
of oil equivalents
2500
2000
Historic oil price
1500
$2011/barrel
100
1000
500
50
0
Oil
108 GEOExPro
Coal
September 2014
Gas
Hydro
Nuclear Renewables
0
1861
1900
1950
2000
Abadi 6
2.0
4.0
6.0
8.0
Petrel Sub-basin
Malita Graben
Sahul Platform
Timor Trough
Abadi High
ABADI–ARAFURA–ARU
(AAA) MEGAPROJECT
26,500 line km including GeoStreamer® data
PGS is pleased to announce the completion of the cross border
Indonesia-Australia MegaProject. The project includes:
■ Final stacked and matched seismic data
■ Tectonic reconstruction of the area
■ Paleo-depositional maps integrated with seismic
■ Regional source rock, reservoir, and seal maps
■ Geochemical modeling
■ Well success/failure analysis (60+ wells)
■ Play-types and construct play-fairway maps
■ Prospectivity assessment
To locate and evaluate prospects, head straight for the PGS MultiClient
Data Library at www.pgs.com/multiclient
JO McARDLE
Tel: +65 6838 1041 [email protected]
ADRIANA SOLA Tel: +65 6838 1073 [email protected]
A Clearer Image
www.pgs.com
MultiClient
Marine Contract
Imaging & Engineering
Operations
“MAJOR OIL DISCOVERIES
in the Barents Sea”
“SUCCESSFUL PRESALT WELL
“SIGNIFICANT OIL DISCOVERY
offshore Angola”
IN MOZAMBIQUE AND TANZANIA”
We make the data, you make the news.
Nobody knows where the next exploration success is going to be, but recent discoveries in the
Barents Sea and the West Africa presalt Kwanza basin all have Schlumberger multiclient data
at the heart of the story.
Decades of experience form the foundation of our multiclient team’s petrotechnical knowledge.
Together with the latest acquisition and processing technologies, our experts collaborate with
you to identify the best opportunities in the most promising areas.
Write your own success story with our multiclient data:
multiclient.slb.com
© 2014 Schlumberger. 14-pt-0116 Data courtesy of Sonangol EP
Multiclient

Lakagigar - GEO ExPro

Transcription

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