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July 2004 Issue
30
P-talk Newsletters Menu Maximize Your PTAC Membership Conduct a Technology Information Session PTAC News
New Members
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In this issue . . .
PDF (439 KB)
Links and Resources
Coalbed Methane / Unconventional Gas |
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Alberta Energy
Announces The development of innovative technologies to maximize recovery of Alberta’s oil and natural gas reserves will get a boost through an expanded royalty reduction program in partnership with industry. The strategy provides the impetus for the energy industry to develop new technologies that increase resource recoveries and improve project economics while supporting Alberta’s commitment to seeking solutions to critical environmental issues. Under the program, announced by Alberta Energy Minister Murray Smith, the Alberta government will make available up to $200 million over five years in royalty offsets. The funds will be used to offset 30% of eligible costs from approved innovative pilot and demonstration projects in the energy sector. Approved projects must also be supported by industry funding for 70% or more of costs, meaning that up to $667 million could ultimately be made available to support development of important new technologies. If industry were to invest its full 70% or $467 million, the program would be fully subscribed with the Alberta government’s contribution of its $200 million. Smith says the Innovative Technologies Royalty Program will improve environmentally responsible conventional oil, natural gas and in situ oil sands recovery, and provide Albertans with extended economic opportunity. According to Smith, increases in economically recoverable reserves mean more royalty revenue to fund priority program areas such as education and health care. Alberta Energy will be formulating a process and criteria for producers to apply for royalty reductions in cooperation with the Alberta Energy Research Institute (AERI), the Canadian Association of Petroleum Producers (CAPP), the Small Explorers and Producers Association of Canada (SEPAC) and the Petroleum Services Alliance of Canada (PSAC). Applications will be available in late fall of 2004. The Innovative Technologies Royalty Program is part of Alberta’s Energy Innovation Strategy and builds on a $15 million commitment to royalty reductions to four projects using CO2 to enhance oil or gas recovery announced in April 2004. This latest announcement increases and widens the scope of the province’s commitment to sustainable and environmentally responsible development by $185 million. Criteria considered for the new funding includes increased oil and gas recoveries, lower operating costs, improved environmental protection, and optimal co-production of bitumen and natural gas. PTAC is pleased to see the announcement of this significant new program and expects innovation and technology deployment in Alberta’s oil and gas industry to increase as a result in the coming years. This program was one of the major recommendations contained in the Alberta Energy Research Institute/PTAC Spudding Innovation report (www.ptac.org/techinnp.html) that was supported by many collaborating organizations including the Petroleum Services Association of Canada, Western Economic Diversification and producers. PTAC members will have the opportunity to provide input to Alberta Energy on the program application process and criteria in the coming months.
For further information, please contact –
Coalbed
Methane / Unconventional Gas North America’s Largest Conference on Natural Gas from Coal (NGC), Shale, Low Permeability Reservoirs, and Hydrates PTAC and the Canadian Society for Unconventional Gas (CSUG) are pleased to present the 6th Annual Unconventional Gas Conference Nov. 17–19, 2004, Hyatt Regency, Calgary. This three-day conference encompasses over 30 technical presentations, interactive panel discussions, exhibits, and receptions, ensuring a well-rounded program.
Nov. 17 – Unconventional Gas Day
Nov. 18 – Coalbed Methane Day
Nov. 19 – Stakeholder Day
To register visit PTAC’s web site at
www.ptac.org/techcbmf.html.
For further information or sponsorship, exhibitor and hospitality suite
opportunities, contact –
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Drilling On May 27th, PTAC hosted the Drilling Peaks, Valleys and Safety Technology Forum and Poster Session. This event featured presentations that identified ways to balance drilling activity throughout the year and to improve drilling rig safety using new technology or by adopting new company strategies. Feedback from the forum’s 31 attendees was positive. As a result of a lively afternoon panel discussion, the Drilling Innovators Advisory Group (DIAG) was asked to build an industry-wide load-levelling business case to present to industry decision makers, along with a follow-up business case for industry and financial analysts. The results will be posted on the PTAC web site when complete.
To see this event’s presentations, please go to the PTAC web site
at
www.ptac.org/techdrlf.html. Emission Reduction / Eco-efficiency TEREE Steering Committee Technology for Emission Reduction and Eco-efficiency The PTAC Technology for Emission Reduction and Eco-efficiency (TEREE) Steering Committee has established terms of reference, objectives, priorities and operational functions. Industry and government co-chairs were appointed at the May 2004 meeting. Clearstone Engineering presented findings on the top five sources for direct emissions in the Alberta, B.C. and Saskatchewan upstream oil and gas industry Committee. Heaters and boilers were one of the top five emitters and a priority for the oil and gas industry. As a result PTAC issued a Fire-Tube Immersion Heater Efficiency Request for Proposal (RFP). The purpose of this RFP is to initiate a project to provide the most efficient and cost-effective way to address the problem of inefficient immersion tube heaters. For more information on this RFP, visit PTAC’s web site at www.ptac.org/rfps1.html. In May 2004, Allan Chambers, Alberta Research Council, presented a project proposing to demonstrate the use of Differential Absorption Light Detection and Ranging (DIAL) combined with gas leak visualization methods to quantify reductions in fugitive emissions. TEREE has committed $20,000 to this project which will take place over the summer. This project is complimentary to the Spectrasyne DIAL Phase III research project currently underway with the PTAC Air Research Steering Committee. For more information on this project visit PTAC’s web site at www.ptac.org/projects1.html. The TEREE Steering Committee reconvenes in the fall to act on other focus areas identified by Clearstone. PTAC anticipates formulating and issuing subsequent RFPs. For more information on TEREE or the Fire-Tube Immersion Heater Efficiency RFP contact –
Denis Gaudet, Director
Ralf Aggarwal Energy Audits Identify Savings Energy Audits Gain Ground as Oil and Gas Producers Look to Cut Energy Costs Upstream oil and gas companies are turning to energy audits to identify savings opportunities in their drive to cut operating costs and reduce energy consumption and emissions. In a recent questionnaire carried out for Natural Resources Canada’s (NRCan) Office of Energy Efficiency, PTAC found that a majority of producer respondents are actively pursuing energy and emissions audits for their large processing facilities and are planning for more audits in the future. PTAC President Eric Lloyd says oil and gas companies are major consumers of produced energy and play a key role in demonstrating the value of energy conservation in hydrocarbon energy production and consumption. The results of this survey show that many companies are both aware of and keenly interested in pursuing energy efficiency opportunities within their operations. The 108 participants who responded to the online survey cited reducing operating costs as the top reason for conducting energy audits for their operations. The participants – including producers, consultants and equipment suppliers – indicated that meeting regulations and internal standards, and reducing greenhouse gas emissions are also important in their decision. NRCan commissioned the survey because of its involvement in the upstream oil and gas community. It provides financial support for upstream oil and gas companies to perform energy audits through its Industrial Energy Audit Incentive program. NRCan partnered with PTAC to help promote and deliver the energy audit incentive. Information on the incentive and the questionnaire results and analysis can be found on the PTAC web site at www.ptac.org/iei1.html. PTAC thanks everyone who participated in the questionnaire. Congratulations to prize draw winner Brandis Arsenault of BP Canada Energy Company who chose the Delta Lodge at Kananaskis getaway. General information on the Industrial Energy Audit Incentive
is available at
www.oee.nrcan.gc.ca/cipec. Brenda Belland
NRCAN Industrial Energy
Audit Incentive Forum This forum attracted 31 attendees from field operations personnel, head office staff and local area service providers. As follow-up to a PTAC Technology Information Session held in January 2004, this forum was focused on solutions to promote efficient use of electrical power, and to reduce the total power demand through effective water management or alternate recovery methods. The presentations from this forum are available on the PTAC web site at www.ptac.org/techeeaf.html. For technical information, please contact –
Bruce Peachey For program information, visit PTAC’s web site at www.ptac.org/iei1.html or contact –
Brenda Belland Environment Upcoming Forum Air emissions and their associated health effects are a complex topic that is increasing in importance to the petroleum industry. Federal and provincial governments are requiring increased emissions reporting, which has led to the development of new processes and technologies for emissions inventorying and reporting. Air-related research to date has focused mainly on improving flaring performance, but as scientific data is generated, the focus is shifting to new technology development geared at reducing air emissions. Current research project results are also being used to create new regulations, along with input from various stakeholders. This forum will be of interest to all government, ENGO and industry stakeholders who have a vested interest in the status of current air issues and their future directions. PTAC, along with forum partners and sponsors, invites you to participate in the Air Issues Forum and Poster Session, September 30, 2004, to address these current issues. This diverse technical program will facilitate the exchange of information regarding technological advances, disseminate new research results, report on new projects initiated to address current issues, and provide updates on environmental regulations. A poster session and networking reception will also provide the opportunity to exchange findings, ideas and network with peers. Presentations will include field trials on optical methods to track well test flare plumes, solution gas and knockout liquids characterization studies and improved flare designs. The poster session will feature additional research projects. To register, view the detailed agenda or to submit a poster, visit the PTAC web site at www.ptac.org/forums1.html. For more information please contact –
Tannis Such The three RFPs are posted on the PTAC web site at www.ptac.org/techenvr.html.
If you are interested in participating either as a potential supporter or supplier of one or more of the above RFPs, please fill out the Expression of Interest Form posted with each RFP on the PTAC web site at www.ptac.org/techenvr.html and forward your completed form to Tannis Such of PTAC. For more information, please contact –
Tannis Such
Pipelines NRCan Corrosion Management Licensing Opportunity Natural Resources Canada (NRCan) presented a new technology for the selection of corrosion inhibitors at a PTAC Technology Information Session on June 23, 2004 to an oil and gas industry audience. Presenter Alan Bowles says NRCan needs a manufacturer to produce the Rotating Cage laboratory test apparatus and a licensee or licensees for associated Corrosion Inhibitor Selection Software. He invited session participants to submit applications for licenses. Dr. Sankara Papavinasam, lead developer of the apparatus and software, outlined the results of his research which compared the ability of laboratory test methods to predict corrosion found at three field sites: an oil transmission pipeline, and at a “gassy oil” and an “oily gas” production pipeline. The Rotating Cage outperformed 11 other test methods to correctly predict field performance. He then demonstrated the software, showing how it may be used to select correct parameters for the Rotating Cage and other tests, and to interpret their results. Papavinasam is the task force chair for the American Society for Testing and Materials responsible for shepherding the Rotating Cage test method through the standardization process. Final approval and publication are expected before the end of the year. Bowles says the market for the apparatus and software is worldwide, and comprises laboratories in oil and gas fields, refineries, pipeline operators, corrosion service companies, inhibitor suppliers and regulatory bodies. It can also be expanded to embrace chemical and petro-chemical plants. The deadline for submission of license applications is August 3, 2004. To view the presentations made at the information session, visit the PTAC web site at www.ptac.org/techpplt.html. To request an information package on this business opportunity, please contact –
Alan Bowles Reservoir Recovery Technology Information Session
Produces Results Corac Group plc (Corac), an intellectual property and licensing company specializing in compressor technology, recently announced the signature of a Joint Industry Project (JIP) for the development of its unique, patented downhole gas compression technology. Corac initiated this JIP at a PTAC Technology Information Session in November 2003 co-sponsored by Husky Energy Inc. To review the presentation made at the JIP launch, please visit the PTAC web site at www.ptac.org/techrest.html. A Shell-funded feasibility study evaluated the technology for technical and economic viability, and considerable industry interest culminated in the addition of four additional major international oil and gas operators to the project. JIP participants comprise ConocoPhillips, ENI, Husky Energy, Repsol-YPF as well as Shell, all of whom have gas assets worldwide which they believe could benefit from this game-changing technology. As well as covering the development costs for the next phase, the participants will also make substantial resources available to ensure the final product specification meets industry requirements. Corac’s downhole gas compression concept involves the coupling together of a number of axial compressor modules in a single compression train for installation in the well bore in close proximity to a gas reservoir. In this location, a modest uplift in pressure results in a very significant increase in gas production compared with conventional methods using surface compression, thereby accelerating gas production and cash flow from a producing asset. Potential production rate enhancement of up to 40% has been demonstrated through the application of downhole gas compression during a number of gas field case studies carried out over recent months. Placing the compressor downhole could also have the effect of being able to lower the reservoir abandonment pressure which in turn would materially increase the ultimate recovery from a gas field, thereby further enhancing the economic benefit from the installation of this novel application of existing technology. Phase One of the JIP is scheduled for completion by the end of 2004, with further engineering and development work leading to the manufacture and testing of a prototype downhole in a producing gas well within the following two years. For technical information on this JIP, please contact –
Stuart Oakley
Frank McIntyre, Canadian JIP Partner
New Technical Steering
Committee The CO2 EOR Steering Committee will provide strategic direction to PTAC on CO2 EOR-related innovation, research and technology opportunities, needs and challenges, as well as to identify barriers in the oil and gas industry. PTAC, with guidance from the Steering Committee, will facilitate the search for new or improved technologies and will foster their development through pilot testing, if required, and as funding permits. PTAC will also organize demonstration projects, working groups, Requests for Technology (RFTs), technology or innovation case studies, workshops, forums, conferences, and technology information sessions as required to deliver the results of development work to industry. To view the event proceedings, visit www.ptac.org/techresf.html or contact –
Brenda Belland For more information on the CO2 EOR Steering Committee, contact –
Ralf Aggarwal
Innovative Investment
Plan to Increase Recovery and Reduce Emissions Four test projects aimed at advancing Alberta’s commitment to reducing greenhouse gas emissions, while furthering the economic objectives of the government’s 20-year plan, Securing Tomorrow’s Prosperity, are now set to go ahead. In 2003, Alberta Energy Minister Murray Smith announced a maximum of $15 million in royalty credits would be available over five years to companies demonstrating the use of carbon dioxide (CO2) in the development of Alberta’s oil and gas resources. Producers were invited to submit applications to the Alberta government describing potential projects; the successful applicants can earn royalty credits for up to 30% of approved costs. Smith says the use of CO2 to improve oil and gas recovery is of great interest to the oil and gas industry. Smith says the Alberta government has been working closely with industry to promote innovation and technology that will enhance the sustainable development of the province’s abundant energy resources. Smith maintains that Albertans understand that in order to produce oil and gas resources, it is sometimes necessary to share the risk of development and demonstration of new energy projects and technologies. A total of $14.1 million in royalty credits has been approved for four enhanced oil recovery projects in Alberta:
Last month the Government of Canada also announced a program to help develop a market for CO2. According to Smith, these pilot projects are further evidence government and producers recognize their individual and common responsibilities, as well as the need to work together to achieve CO2 emission reductions. Continued investment in energy innovation and further collaboration between government and industry will help develop an integrated energy industry that provides economic and social benefits for Albertans, and Canadians. As announced in the government’s 20-year plan, Alberta Energy is focused on enhancing Alberta’s current competitive advantages, building Alberta’s innovation system and focusing on value-added sectors. For more information, please contact –
Gordon Vincent
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Maximize Your PTAC Membership Chances are, you’ve attended a PTAC Technology Information Session (TIS) or received an invitation to a TIS in the past year. As a PTAC member, conducting a TIS for your organization is one of several valuable benefits you enjoy. PTAC encourages your organization to introduce your technology to advance it along the S-Curve to full commercialization in the oil and gas industry. The intent of a TIS is to ensure interested parties receive all the information they need and to provide the proponent with feedback. A TIS must be sponsored by at least one other PTAC member or oil and gas company. The sponsor simply supports the proposal as worthy of industry consideration. TIS proponents have successfully used these sessions to achieve one or more of the following goals:
A PTAC coordinator works with proponents throughout the TIS process, helping to draft an invitation which PTAC distributes to a permission-based extensive list of oil and gas industry contacts. Typically these are PTAC members or oil and gas industry personnel interested in collaborative research and technology development. PTAC administers the details, secures a venue, distributes the invitation, and assists with the proponent’s catering order. PTAC members may schedule a follow-up TIS to solicit financial support or technical direction for a subsequent phase that you wish to launch, to find a field pilot or field test site. To discuss how your organization can maximize your PTAC membership by conducting a Technology Information Session, please contact –
Arlene Merling
Update Your Email Preferences In an effort to keep costs to a minimum, PTAC relies on email to distribute electronic copies of event invitations, calls for presentations, Requests for Proposals, and other event notices. Since emails with attachments are frequently filtered out as a potential source of computer viruses, PTAC uses the space-saving html format. However, some email SPAM filters are now screening out PTAC’s html-formatted emails. Ensure you receive the notices you’ve requested by taking the following steps:
All respondents who reply indicating an email preference by August 1st, 2004, will be entered in a draw for a coveted stainless steel PTAC water bottle or travel mug. For further information, please contact –
Arlene Merling
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PTAC News Board Changes
We welcome Mike Singleton, Director, Technology Planning and Integration, Suncor Energy Inc., to his role as the incoming Chair of the PTAC Board of Directors. We thank Rich Kerr, Chief Engineer, Nexen Inc., for his significant contributions as the past Chair of PTAC’s Board, and are grateful for his continuing participation on the PTAC Board of Directors.
Retiring Board Members
New Members Producers
Service and Supply Companies
Research Provider
www.ptac.org
PTAC Petroleum Technology Alliance Canada Facilitating Innovation, Technology Transfer, and Collaborative Research and Development (R&D) in the Upstream Oil and Gas Industry PTAC is a not-for-profit association governed by a volunteer board of directors made up of representatives from producers, service and supply companies, research and educational institutions, inventors and government. P-talk publishes eight issues per year – alternating electronic with hard copy issues and is available through PTAC. If you would prefer not to receive the hard copy, please contact Lorie Frei of PTAC.Material may be reprinted without permission but credit would be appreciated. Contact UsPTAC 500 Fifth Avenue S.W. Calgary Alberta T2P 3L5 www.ptac.org info@ptac.org fax: (403) 920-0054
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