February 2014 ///

Special Focus

E&P spending to top $700 billion globally in 2014

James West, Barclays

Sustained high oil prices, the sanctioning of major projects and the delivery of a large number of offshore rigs, in both 2014 and 2015, are driving the projected increases in international E&P spending.

Washington portends a mixed bag for oil and gas

Dr. Roger Bezdek, Contributing Editor

While a potential Republican takeover of the Senate could benefit upstream oil and gas, a large threat looms in the form of Obama’s massive executive bureaucracy, which vows to bypass Congress.

U.S. drilling rides high, but challenges remain

The global E&P industry is riding the crest of a wave, and nowhere is that more true than in the U.S. For the last three years—and for this fourth year as well—drilling activity has remained in a narrow band of not more than 4,000 wells’ difference.

Rig count drops as drilling, completions become more efficient

The average U.S. rotary rig count dropped in 2013 by more than 8%, compared to the previous year.

U.S. oil production surge continues, supported by strong prices

Crude and condensate. Prices that hovered from the low $90s through $110/bbl throughout the year kept the drill bits turning and the oil flowing in 2013.

Well count for active U.S. oil wells nears 600,000

The number of producing oil wells in the U.S. rose 3.4% last year.

U.S. sees slight increase in active gas wells

The number of producing gas wells in the U.S. rose slightly over the course of the last 12 months.

EIA: Drilling techniques, sustained oil prices contribute to record U.S. reserves gains

According to the latest data from the U.S. Energy Information Agency, in 2011, U.S. E&P companies saw a 15% increase in proved reserves during 2011, adding nearly 3.8 billion bbl of crude oil and lease condensate.

Despite slowdown concerns, fundamentals remain strong

Staff, World Oil; Mauro Nogarin, Contributing Editor

Though operators expect a good year, most are taking a more careful look at E&P budgets, seeking both improved efficiencies and lower costs.

Canada begins a comeback

Robert Curran, Contributing Editor

The outlook remains murky for Canadian producers, but some positive news on pipelines, and a weakening Canadian dollar, bode well for the year ahead.

Joint Plan of Action alters Iranian oil and gas market

Sarah French, international oil and gas lawyer

An agreed-upon Joint Plan of Action aims to maintain Iran’s crude oil exports at a flat rate, for an initial, six-month period, and avoids placing additional restrictions on non-domestic purchases.

Features

Regional Report: Mediterranean

Ian Lewis, Contributing Editor

Noble Energy’s gas discoveries offshore Israel and Cyprus have caught the attention of international operators, such as Total and Eni, who will soon drill offshore Cyprus.

Optimizing extended reach drilling in deepwater West Africa

Hernando Jerez, Rafael Dias, Jim Tilley, Halliburton

An optimized BHA, detailed planning and advanced modeling enabled the team to drill the ERD well with a single BHA per interval. A challenging 12¼-in. tangent interval was drilled to reach the top of the pay zone keeping an 85° sail angle, setting a regional record of 11,150 ft flawlessly drilled from casing to casing in a single run.

Smart caliper qualified for measurement-while-drilling operations

Wajid Rasheed, Smart Reamer Drilling Systems Ltd.; Shaohua Zhou, Nasser M. Al-Khanferi, Saudi Aramco

A new caliper tool was designed, tested and qualified to overcome fluid density and BHA placement challenges present in MWD calibration, especially during under-reaming operations.