What's new in production

	Vol. 224 No. 1
ROBERT E. SNYDER, EXECUTIVE ENGINEERING EDITOR

 Major climate/energy study. California's Stanford University has unveiled an unprecedented approach to addressing one of the “world's most challenging energy and environmental issues.” It announced a multi-$million collaboration among leaders of the global scientific and engineering communities and major corporations, including ExxonMobil, General Electric and Schlumberger. The participants will engage in research to develop technologies that foster development of a global energy system in which greenhouse emissions are much lower than today. 

 The Global Climate and Energy Project (G-CEP) is an alliance of scientific researchers and leading companies in the private sector. Stanford, as Project manager, will identify preeminent scientific researchers from around the world who will work with the private-sector sponsors to research low greenhouse gas emission energy technologies. 

 Several private-sector companies plan to invest a total $225 million over the next 10 years to the project. To date, ExxonMobil plans to invest up to $100 million; GE, $50 million; and Schlumberger, $25 million. E.ON, Europe's largest privately owned energy service provider, will contribute $50 million and join G-CEP, along with other academic / corporate sponsors from Europe. The University expects to involve additional global companies in the automotive and technology industries as the research progresses. 

 Stanford will conduct a significant portion of the research. It will be joined by institutions around the world to work with the private-sector sponsoring companies in North America, Europe and Asia. In keeping with the program's objectives to encourage broad application of the technologies that flow from the research, sponsoring companies will provide commercial insights and expertise.

 A key objective of the initiative is to develop a portfolio of energy technologies that can be deployed on a global scale, in developed and developing economies. Stanford would hold legal title to all technology and information derived from this Project, as well as to all patents sought. However, one of the Project's fundamental tenets is that the University make the research results widely available to the scientific and engineering community. 

 Since the Project involves Global Warming, certain environmental groups, principally Greenpeace, have seized the opportunity to lambaste ExxonMobil in particular. A release from that green group makes statements like, “The $100 million contribution is the latest attempt by the company to greenwash its poor track record on global warming,” and “If ExxonMobil is truly committed to stopping global warming, it would call off its lobbying in Washington and support mandatory reductions in pollution.”

 On the contrary, it would seem that $225 million invested in top-level research over 10 years will come up with tangible scientific evidence on the problem, and global solutions, compared to the largely undocumented rhetoric we have been exposed to so far. A comprehensive technical study of the problem is certainly a major step in the right direction. 

 Congress passes security / terrorism bills. Before its late 2002 adjournment, the U.S. Congress cleared several bills of importance to the U.S. oil/gas industry. Regarding port security, the House and Senate cleared a bill that establishes regulatory authority for offshore LNG facilities and other offshore natural gas infrastructure (not including production platforms). The bill, titled the Maritime Transportation Antiterrorism Act of 2002 (S. 1214), was awaiting the President's signature. 

 In addition to requiring the Department of Transportation to develop a comprehensive national maritime security plan to prevent or deter terrorist attacks, the bill extends the Deepwater Port Act of 1974 to natural gas, thus giving the U.S. Coast Guard regulatory authority over offshore natural gas ports and other facilities, such as storage, regasification and other liquefied natural gas facilities. 

 After a decisive push from President Bush, a long-stalled measure that would create a federal terrorism reinsurance program was also set for final passage. The bill establishes a federal backstop for commercial property and casualty insurers in the event of a terrorist attack. The bill's provisions would last until 2005, with the government paying 90% of claims, once insured losses from terrorism surpass certain set amounts. At the prompting of NOIA and a coalition of industry groups, the bill includes coverage of damages resulting from any terrorist attacks on OCS oil and gas facilities

 Another relevant action was a bill amending safety regulations for oil and gas pipelines that passed in both houses of Congress and was sent on to the President. It will require that half of the nation's pipelines be inspected within five years of enactment, the remaining within ten years. 

 And in a major victory for the Bush administration, Congress passed the long-awaited Homeland Security bill. The bill, which establishes a new cabinet-level Department of Homeland Security, includes a broad exemption from the Freedom of Information Act for industry. Another industry-relevant provision places the U.S. Coast Guard under the newly formed Department of Homeland Security. It has been a part of the Department of Transportation. It is expected to retain its extensive oversight responsibilities relating to offshore oil and gas activity. 

 World-record perforating. Baker Atlas has set the world record for the longest horizontal perforating operation in the Norwegian section of the North Sea. The crew successfully ran a 2,246-m (7,367-ft) Horizontal Oriented Perforating System (HOPS) to perforate a total 1,490-m (4,888-ft) section using 4-1/2-in. deep penetrating PERFFORM charges. The guns were tubing conveyed using 188 swivel gun connectors to orient gun sections and negotiate deviations in the wellbore. Charges were oriented in the direction of maximum formation stress to minimize sand production. 

 Baker launched the new system after completing field testing with over 50 runs. It is designed to perforate long intervals in highly deviated wellbores where perforation orientation is critical. Gun sizes from 2-7/8 in to 7 in. are available. The system is made up of specially phased, eccentrically weighted perforating guns and swivel gun connectors that allow the guns to rotate.