What's new in production

	Vol. 224 No. 5
ROBERT E. SNYDER, EXECUTIVE ENGINEERING EDITOR

 Alaska to US gas line. Reportedly, after many years of debate on how to transfer Alaskan gas to the Lower-48 states, the US Congress is expected to support the construction of a major, 3,600-mi-long gas pipeline with provisions in this year’s energy bill. Michael Davis, in an April 12 Houston Chronicle article, speculates that the provisions, if passed by both the House and the Senate, could move construction of the $20-billion project forward, and possibly see completion of the line by 2012, to deliver as much as 4.5 Bcfd to the Midwest. No small job, the line would require more than 5 million tons of steel, 54 million construction man-hours and involve 8,000 – 9,000 jobs per year. 

 The pipeline to be proposed by the US energy bill is an option unpopular with some Canadians, who prefer an alternate route through the Beaufort Sea and into Northern Canada. The US-proposed southern route would go south from Prudhoe Bay, west of ANWR into the Yukon Territory, then turn southeast across NE British Columbia and through Alberta. Alaska’s North Slope is estimated to hold 35 Tcf, possibly as much as 150 Tcf. Most produced gas in Prudhoe is now reinjected for conservation and to stimulate oil output. 

 With continued gas prices of $5.00/Mcf or more, the system “makes more sense.” And the House bill provides enabling legislation that will facilitate permits and expedite environmental impact studies and hearings on legal challenges. The Senate bill contains federal guarantees for the developers, should they need them. Additional gas supply to the continental US is becoming a necessity. With 70% of its rigs drilling for gas, no large reserves are being found onshore, and rapid depletion of finds around known areas doesn’t help the situation. Development of offshore reserves and imports of LPG are the principal options. 

 Composite reinforcing. While they don’t specifically tie their new product to the proposed Alaskan gas pipeline, a recent field test by TransCanada of Calgary, Canada, established the practicality of installing composite reinforced line pipe (CRLP) on a commercial scale. NCF Industries, Inc., TransCanada and CRC-Evans Pipeline International, successfully joined seven sections of a 40-ft-long CRLP on the 15-mile Saratoga section of the Western Alberta system mainline expansion. Using relatively simple equipment and assisted by the pipeline contractor, Marine Pipeline Construction, two technicians composite-coated six 6-in. weld area joints of the 48-in., 0.461-in. WT, X-70 steel pipe reinforced with an outer wrap of isopolyester resin-glass fiber composite, previously installed by NCF in its California facility. The pipe is now part of a natural gas pipeline operating at 960 psi, with future capability to operate at 1,260 psi. 

 As an alternative to more expensive solutions for high-pressure, high-throughput pipelines – such as thicker-walled X-100 – the benefits add up quickly; e.g., lower material/ transportation costs, increased corrosion resistance and reduced risk of propagating failures. There has been a general trend in the gas pipeline transmission industry toward high-pressure lines using higher strength steels. However, as the strength has been increased, so have issues of weldability and fracture control; CRLP addresses these issues. 

 To wrap the pipe, NCF impregnates the glass fiber roving with the isopolyester resin and then winds this composite material around the pipe. A heat-activated process initiates the resin curing. Once cured, the composite wrapping will not distort, even under high temperatures. The glass fiber rovings, firmly set in the cured isopolyester, add hoop strength to the pipe. 

 TransCanada has considered many alternatives. CRLP is proving to be ideally suited for construction of high pressure, large-diameter lines operating at as much as 3,600 psi. The savings in material costs alone are significant; they are reportedly 10 – 20% lower than for X-100 pipe of equal capacity. Additional financial benefits accrue from the lightweight, easy-to-join capability, and the fracture-control and arrest-capable reinforced pipe. Presentations have been given to the US Department of Transport’s Office of Pipeline Safety, and in Canada to the National Energy Board and the Alberta Utilities Board which regulate pipelines. The regulatory process to have CRLP approved for use through the Canadian Standards Association has begun.

 Speaking of gas supply. The Energy Information Administration of the US Department of Energy reports, in its assessment of Natural gas productive capacity for 2003, that available productive capacity appears sufficient to meet the level of demand for gas production forecast in its Short Term Energy Outlook. However, the relatively narrow margin of surplus capacity – roughly 10% of the projected 51.4 Bcfd average production rate required to meet gas demand in 2003 – limits available production response to any sudden demand increase or production drop. Withdrawals of stored gas can normally respond to such problems, but storage levels are now at record lows.

 Maintaining or increasing gas-well drilling is critical to maintaining or increasing gas productive capacity. Wells producing for one year or less contribute 25 – 30% of total wellhead capacity. Well completions were down significantly (25%) in 2002, but a large increase in completions (34%) is projected for 2003. Natural gas productive capacity for the Lower-48 states is available on EIA’s internet site at: www.eia.doe.gov/oil_gas/ fwd/ngcap2003.html. 

 SARS vs. SPE. It takes a lot to keep oil people away from an SPE meeting – something like a hurricane in New Orleans. But some scheduled SPE events are being affected by ongoing public concern over the Severe Acute Respiratory Syndrome (SARS) outbreak. The Asia Pacific Oil and Gas Conference and Exhibition (APOGCE), originally scheduled for April 15 – 17 in Jakarta, has been rescheduled for September 9 – 11, in the same location. Conference co-sponsors, SPE and the Society of Indonesian Petroleum Engineers, agreed to postpone the show for the “safety and security of delegates and exhibitors.” Co-chairs of SPE Forum Series events, scheduled for May 11 – 16 and May 18 – 23 in Phuket, Thailand, are considering postponement due to the SARS outbreak. Two of the Forum Series may be rescheduled in August or September.