by Paul Siegele
As our industry drills deeper and farther for crude oil, the stakes of such projects are rising.
That's why I chaired a panel at the World Petroleum Congress to look at ways technology, science, partnership and ingenuity are helping Chevron develop ultra deep reservoirs.
The key, says my colleague Dave Rainey, vice president Gulf of Mexico Exploration for British Petroleum, is to use know-how and technology to better predict what is beneath the surface.
Taking into account factors like the spatial distribution of pressure and the movement of fluids through the history of a basin may help us to predict places where compaction or diagenesis are likely to occur.
Compaction is the consolidation of sediments, and diagenesis is the chemical alteration of pore spaces within a reservoir. Both are culprits that prevent crude oil from flowing freely, which can be disastrous when a firm has invested billions to develop an ultra-deep field.
Partnership is another important tool for managing the risks of ultra deep exploration. It not only helps to provide the massive investments these projects require, but it also lets partners share specialized knowledge. StatoilHydro has an agreement with Chevron in the U.S. Gulf of Mexico, for example, under which a team comprised of technical staff from both companies work together on several deepwater fields. StatoilHydro and Devon Energy are investors along with Chevron in the Jack project in the U.S. Gulf of Mexico. The Jack well test in 2006 set more than a half a dozen world records for equipment pressure, depth and duration in the deep water.
A third way to help make these projects more successful is through tools such as coring and computer modeling, which was discussed by panelist Randall Miller, whose firm Corelab conducts such analysis.
And panelist Anatoliy Dmitrievsky, director of the Institute of Oil and Gas of the Russian Academy of Sciences, presented a theory about the inorganic generation of oil in granite.
Many technical challenges still remain to be solved in ultra-deep projects, but the industry has the bright people needed to find solutions.
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Posted July 04, 2008 03:54 | Permalink
by Ali Moshiri
Technology has always enabled us to find, produce and deliver energy. Today, technology is critically important as we push into the frontiers of the deep water, heavy oil and remote, difficult-to-reach locations. Increasingly, the success of hydrocarbon exploration and production rests on the smart application of the right technology. In other words, technology is only as good as the people who develop and apply it with ingenuity, intelligence and focus.
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Posted July 04, 2008 03:07 | Permalink
by Tara Tiradnakorn
When people think of technology, they often think of industries such as aerospace or computing. They seldom think of oil and gas.
But ours is an industry that is heavily dependant on technology and innovation. In Thailand, for example, where Chevron is the No. 1 crude oil and gas producer, we depend on technology to meet the growing energy needs of the country and the Asia-Pacific region.
Chevron operates more than 195 platforms in the Gulf of Thailand with a 2007 total average daily production of 138,000 barrels of crude oil and condensate (71,000 net) and 1.7 billion gross cubic feet of gas (916 million net).
That's a lot of platforms – each requiring the latest equipment and experienced workers to ensure that we continue producing energy efficiently and safely.
It's no wonder our partnerships in Thailand are growing. Thailand recently gave a green light for Chevron and several partners to build the Platong Gas II natural gas project in the Gulf of Thailand. The project is expected to cost $3.1 billion and is designed to add 420 million cubic feet of natural gas per day processing capacity – energy Thailand needs for progress.
Here at the World Petroleum Congress, Chevron's work in Thailand stands out as an example of how our people, our commitment to partnership and our technology make Chevron the partner of choice in the energy industry.
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Posted July 04, 2008 02:39 | Permalink
by Jim Wisner
Our industry is more intent than ever on looking for every opportunity to extract oil and gas more efficiently, in more remote and difficult locations, and with more awareness of our increasing social responsibilities.
You can see evidence of it by the large attendance at the World Petroleum Congress, the new technologies on display here and the discussions about sustainable development.
That's certainly true in Angola.
In 2007, Chevron produced an average of 594,000 barrels of oil per day from Angolan wells. And we continue our very aggressive exploration and major development programs to increase and maintain production.
Together with Sonangol (the Angolan national oil company), Chevron and our partners are developing the deepwater Tombua-Landana project in Block 14 and the Angola Liquefied Natural Gas (LNG) project near the town of Soyo in northern Angola.
A significant technical challenge ahead is the drilling of the gas pipeline from Block 0 crossing the Congo River to the Angola LNG plant. Crossing the vast river will be a significant technological accomplishment.
As well as making these major investments in Angola, we also are proud of our contributions to the development of our Angolan work force and the work we are doing to improve the communities where we work. Like the technical hurdles we face in many of our projects, if we keep our Chevron Way principles in mind, we will meet the challenge.
Posted July 03, 2008 23:55 | Permalink
by Rebecca Roberts
Here at the WPC, I chaired a panel on gas transportation challenges.
Natural gas has become a preferred energy source because it's cleaner than many other alternatives in the hydrocarbon lineup. We're seeing the growth in the global demand for natural gas increase significantly every year. Around the world, there are many large reserves that are not located near the markets that need natural gas.
Chevron has three ways we move gas to market:
- By transporting it through pipelines
- By chilling the gas and converting it to a liquid to transport as liquefied natural gas (LNG)
- By transforming the gas to a liquid such as diesel, a process known as gas-to-liquids (GTL)
Technology plays a key role in all three processes.
We're also depending on technology to help Chevron install pipelines in more remote locations. In the U.S. Gulf of Mexico, for example, we now are drilling in over 10,000 feet of water (3,048 m). We must find ways to deal with the immense pressure of the ultra-deep water when we install the pipelines. And once the pipe leaves the surface of the ocean, we will never look at it again with human eyes. So we must think far ahead as to what issues might arise over the lifetime of that pipeline. We're applying technology such as robotics to install and monitor the pipelines on the sea floor. We also remotely monitor the pressure and flow of the pipeline from a central control center.
Technology helps develop oil and gas reserves that would otherwise not be accessible. Chevron has increased the amount of research and development money spent on the transportation of LNG and the conversion of gas to diesel. These processes contribute to the elimination of gas flaring by allowing Chevron to transport more gas to market.
A significant portion of our research to find solutions for gas transportation and storage is done in partnership with universities and other research organizations. The natural gas market is in transition thanks, in part, to such research. The LNG market has emerged. GTL plants are being constructed. Because of technology, more of the gas reserves are reaching consumers.
While we are working on new technology, we also are trying to address the geo-political challenges to transport oil and gas to those who need it. Many times our pipelines must cross several countries to reach consumers, and this highlights the need to work in partnership with many governments.
But with the demand for natural gas soaring, we all must work together to deliver this cleaner source of energy to those who need it.
Listen to the Interview
Posted July 03, 2008 23:21 | Permalink
by Jeffrey Jacobs
The world is going to need every molecule of energy we can get, in every form. That's why today I took part in the panel discussion at the WPC entitled "Biofuels and Oil Products: Competition vs. Integration." The title of my panel suggests that I should state which side of the "versus" Chevron is on. In other words, do we view biofuels as competition or as a complement to our traditional petroleum-based product offerings? The answer is that we are firmly on the "integration" side. Chevron believes that biofuels complement our traditional petroleum-based fuels.
With the worldwide use of energy expected to rise 50 percent by 2030, we're going to need to make the most of the traditional sources, such as oil and gas, and also depend on technology to help us make emerging sources of energy viable.
Chevron's technological strengths span the entire chain of producing, refining and marketing hydrocarbons. But in the biofuels area, we do not have a background in biomass or agriculture.
So in February of this year, we launched a joint venture with Weyerhaeuser Company, one of the world's largest forest products companies, to develop the next generation of renewable transportation fuels from nonfood sources. Our new company, Catchlight Energy, will focus on developing advanced technologies for converting biomass from nonfood sources into biofuels.
At Chevron, we value partnerships because we believe all parties bring something to the table. Weyerhaeuser is one of the world's top timber companies. They have expertise in cultivating, harvesting and transporting biomass. Chevron brings a long track record of creating and distributing energy to those who need it. Working together, we're hopeful we can help to solve the puzzle of how to produce biofuel in cost effective ways from waste products.
We've seen a lot of promising technologies at the laboratory scale. The real challenge now will be to scale those technologies through the pilot and demonstration phases to the point where they've been proved to be commercially viable and can deployed at a size that can make a meaningful contribution to energy supplies. It's not going to happen overnight, but technology will be the enabling factor to developing this new industry.
Posted July 03, 2008 20:04 | Permalink
by Eve Sprunt
The buzz at this year's World Petroleum Congress (WPC) isn't just about rising oil prices and the role of technology in providing needed energy. It's also about energy professionals – the need to recruit and retain the people who are at the core of everything we do.
In the midst of a hiring boom in the oil and gas industry, how do energy companies sweeten their appeal to critical talent such as geologists, engineers, chemists and information technology professionals?
That's a big question, touching upon a lot of issues, including when and how many of the "baby boomers," as they're called in the United States, will opt to retire. There are 77 million baby boomers – people born from 1946 to 1964 – in the United States alone and millions more in Canada, Europe, Australia and Japan. Even in countries that don't have the same demographic bulge, competition for talent is growing.
Adding to the problem is that in some countries more students that once would have chosen careers in the oil and gas business are entering other fields.
According to the U.S. Bureau of Labor Statistics, from 1983 to 2002 the number of U.S. petroleum engineers plunged from 33,000 to 18,000. In the same time, industry geologists and geophysicists dropped from 65,000 to 48,000, and the number of U.S. universities with petroleum engineering programs dropped from 34 to 19.
More than ever, "strategic staffing" is top-of-mind here. Chevron is meeting the challenge head on:
- A new, global Chevron University Partnership Program targets 18 top schools (11 outside the United States) to expand recruiting and research relationships worldwide;
- Chevron Energy Technology Co. has mounted a major initiative to engage key technical employees and to find and hire new talent.
But we're clearly not alone in trying to find solutions to the staffing needs.
One of the papers presented during the conference was written by Dr. Raymond Akpojivi of the Petroleum Training Institute in Nigeria.
The paper looks at the role of the government of African nations and at the place of academia-oil company synergy in promoting training of the oil sector's local workforce to meet the present and future needs in Africa. Dr. Akpojivi's presentation examines successful strategies employed by nations in other parts of the world and considers their adoptability or adaptability to the oil sector in Africa.
That's why the WPC forum is so valuable. It brings together other energy professionals from around the world, and we can learn from each other's experiences — and come up with better outcomes.
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Posted July 03, 2008 16:15 | Permalink
by Pete Bartlett
A gathering like the World Petroleum Congress gives us a chance to take stock in the energy industry — to see where we are now and to peer forward into the future. Here at the WPC, I helped lead a forum on "Unconventional Crude Oils and Feedstocks to Refineries," which gave me a great opportunity to do just that.
I am often asked how technology will be applied in our industry in the future.
In the next 15 years, I think we'll see information technologies used to increase production in remote areas where we operate, such as offshore platforms. I see us applying much more automation to refining processes used to produce fuels and products. In the more distant future I'm intrigued with emerging biological technologies. Some may accelerate what Mother Nature has done over millions of years. Even so, it probably will be more than two decades before the results of that technology can penetrate markets on a substantial scale.
Taking these steps will require inventive, creative minds.
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Continue Reading "Technology for Tomorrow"
Posted July 02, 2008 18:55 | Permalink
by Chevron's WPC Blog Team
The giant booths compel you to stop, look and marvel.
Elaborate displays as tall as some buildings, each delivering messages about innovation, exploration successes and social responsibility to delegates of the World Petroleum Congress in Madrid.
But almost no one gets to see what it takes to build such monumental booths. After all, it's the finished product that counts.
So we thought we would show you what it takes to get that finished product. The initial planning and design for Chevron's booth started in April 2007. It was built in the United Kingdom, then packed and shipped to Spain for the conference. It took four days and eight people working at a brisk pace to complete the booth in time for the start of the event.
A marvel indeed. See for yourself.
Posted July 01, 2008 21:07 | Permalink
by David McMurry
Chevron Executive Vice President John Watson accepts an award for social responsibility from the King of Spain Juan Carlos I at the World Petroleum Congress in Madrid. The award honored Chevron's commitment to educate employees to protect themselves from HIV/AIDS. (Chevron Photo)
Technology touches many areas of our company, including those that you wouldn't necessarily associate with it.
Chevron's successes with our HIV/AIDS education efforts, for example, depend on ingenuity and our use of technology. Many multinational companies have HIV/AIDS education programs. Some even have computer versions of their training. What sets Chevron's training apart from others is the level of interaction, the creative way information is delivered, and the variety of media used to deliver our message to employees and partners.
As of June 1, 2008, 21,200 Chevron employees have taken our HIV/AIDS awareness training. Of that number, 12,409 (58.5 percent) have taken the computer-based version of the training. The computer-based version of our training has been translated into 11 languages and is available to employees through our online training system, on CD and even thumb drives. With employees speaking so many languages, we knew that in order to achieve the highest level of success we would need to use technology to support our effort.
Our commitment to combat HIV/AIDS and to save lives was honored today with a World Petroleum Congress award for social responsibility in Madrid. The award was presented to Chevron Executive Vice President John Watson by the King of Spain Juan Carlos I.
Continue Reading "Chevron Wins Social Responsibility Award for Fighting HIV/AIDS"
Posted June 30, 2008 23:46 | Permalink
by Dennis Wyss
The World Petroleum Congress is the largest gathering of the oil and gas industry. (Chevron Photo)
This year, energy is the hot topic around the world.
And in Madrid over the next four days, 500 exhibitors, 4,000 delegates, 10,000 attendees and 400 media reps are gathering under one roof to talk about that very topic.
The theme of the 2008 World Petroleum Congress is "A World in Transition: Delivering Energy for Sustainable Growth." A world in transition, indeed:
- Oil closed at $65.02 on September 27, 2005, the day the last World Petroleum Congress — which happens every three years — was gaveled to a close in Johannesburg.
- Since 2005, global oil demand is estimated to have grown 3 million barrels per day — and strong demand growth is projected to continue.
- The world's population has grown by almost 250 million people since 2005, from 6.5 billion in 2005 to an estimated 6.75 billion in 2008.
As the data above suggest, all WPC participants have their work cut out for them over the next four days in Madrid.
Continue Reading "Oil and Gas Industry Takes Center Stage"
Posted June 30, 2008 21:36 | Permalink
by Chevron's WPC Blog Team
Every day the world demands energy and every day it gets harder to find it. Our challenge is to deliver the energy people need to live their lives. We believe technology will play a key role. Whether it's using advanced computer systems to see miles below the sea floor or turning natural gas into liquid so it may be transported to market, technology will help us produce a supply of smart, reliable energy now and into the future.
We asked two of our employees at WPC, Pete Bartlett and Eve Sprunt, "How is technology changing the energy industry?"
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Posted June 29, 2008 19:00 | Permalink
by Don Campbell
The World Petroleum Congress takes place June 29 through July 3 at the IFEMA-Feria de Madrid convention center. The sprawling complex is in one of Madrid's new business areas, just minutes by car or underground from the city's Barajas International Airport. (Chevron Photo)
Energy prices have become a profoundly important issue to consumers, governments and the oil and gas industry today.
The problem is formidable: under pressure from worldwide demand growth and reduced spare supply, how does the industry continue to meet the needs of consumers in an affordable and environmentally responsible way?
As thousands of delegates from 61 member countries gather in Madrid from June 29 through July 3 for the World Petroleum Congress, this event blog will report on ways technology and new ideas are addressing these challenges and shaping the oil and gas industry.
Chevron participants to the Congress, which is held every three years, will share how they see the industry responding to this dynamic marketplace. The era of easy access to cheap oil is clearly over. The industry has already begun developing new technologies to deliver the energy that current and future generations will need to support their economies and prosper. The Congress will highlight some of this activity.
Continue Reading "Why We're Doing This Blog"
Posted June 27, 2008 23:00 | Permalink