The firm largely attributes the relatively stable global production since 2015—despite the decreased spending—to project startups that were approved before the price collapse that
began in mid-2014. Meanwhile, drilling of new wells on mature
fields has dropped by about half since that time.
Mature offshore oil fields now decline at a rate of 8%/year,
Rystad says, whereas the same fields declined by just 5% in
2014 before the decrease in drilling activity.
“Old offshore fields are now declining faster, and as a consequence, 1 million bbl of oil have been removed from production
balances,” said Magnus Nysveen, Rystad head of analysis.
As of early October, global oil and liquids production totaled
97 million b/d, exactly 10 million bbl higher than at the start
of this decade, according to Rystad data. The firm predicts a
continued shift of market share from conventional oil production to US shale oil.
“We expect US oil production will continue to ramp-up
towards its full potential of 15 million bbl within the next 5
years, and then we would again see quite a dramatic tightening of the oil market,” said Nadia Wiggen Martin, Rystad vice-president of markets.
Scotland to extend frac ban indefinitely
By extending its ban on hydraulic fracturing, the Scottish government “is turning its back on a potential manufacturing and
jobs renaissance,” according to an industrial supporter of shale-gas production.
Ineos Shale, operator of two exploration licenses between
Glasgow and Edinburgh, criticized a decision announced Oct.
3 by Energy Minister Paul Wheelhouse in the Scottish Parliament to continue indefinitely a moratorium in place since 2015
on the completion technique.
Environmental groups welcomed the decision, which
Wheelhouse said means fracing “cannot and will not take place
in Scotland.” Parliament is expected to support the ban in a
final vote when it reconvenes after an October recess.
“It is a sad day for those of us who believe in evidence-led
decision-making,” said Tom Pickering, Ineos Shale operations
director, calling the decision “a slight on the dedicated profes-
sionalism that Scottish workers have pioneered.”
Pickering predicted Scottish workers will leave the country to
find work as the mature North Sea oil and gas industry declines.
Ineos Shale’s parent is a chemical producer importing ethane
at its refinery and petrochemical complex at Grangemouth. The
operator also holds licenses for shale exploration in England.
Although consultation on hydraulic fracturing in Scotland
focused on water safety and earthquakes, Sam Gardner, acting
director of the environmental group WWF Scotland, said the
ban relates to climate change.
“The climate science is clear. The vast majority of fossil fuel
reserves need to be left in the ground,” he said. “It’s fantastic
Scottish ministers agree that we need to start placing them off
Belayim Petroleum Co. (Petrobel), a joint venture of wholly
owned Eni SPA subsidiary IEOC Production BV and Egyptian
General Petroleum Corp., has let a subsea contract to Baker
Hughes for Phase 2 of the supergiant Zohr gas field in the Mediterranean Sea offshore Egypt.
BHGE will provide project management, engineering procurement, fabrication, construction, testing, and transportation of a subsea production system, including seven manifolds,
tie-in systems, long offset subsea and topside control systems,
SemStar5 high-integrity pressure protection systems (HIPPS),
and workover systems and tools, and will support the installation, commissioning, and startup operations.
The project draws on BHGE’s experience in large-bore, long-offset gas fields and incorporates an integrated HIPPS network.
For the first time, BHGE also will provide 10 e-EHXT trees,
manufactured at its subsea center in Aberdeen. The trees were
designed in collaboration with Eni as part of a standardization
exercise, applying field-proven products and systems gained
from previous projects with Eni on a range of successful deepwater projects in Africa.
BHGE also will provide wellheads as part of a separate contract awarded by Petrobel earlier this year.
Petrobel is leading development of Zohr field on behalf of
PetroSherouk, a joint venture of Egyptian Natural Gas Holding
Co., IEOC, and BP PLC.
PROCESSING QUICK TAKES
Chinese operator to double capacity of PDH plant
Zhejiang Satellite Petrochemical Co. Ltd., also known as Zhejiang Satellite Energy Co. Ltd., has let a contract to Germany’s
Siemens AG to supply a reactor effluent compressor train for the
second phase of its propylene dehydrogenation (PDH) plant in
Pinghu City, Zhejiang Province, China.
As part of the order, Siemens will deliver two of its proprietary STC-SH single-shaft compressors as well as a 41-Mw Siemens SGT-750 industrial gas turbine to drive the dual-casing
compressor train, which is scheduled for installation in late
2018, the service provider said.
Due to be commissioned in early 2019, Satellite Energy’s
Phase 2 PDH plant will mark the first downstream commercial
application of the SGT-750 gas turbine, which alongside its optimized design for direct drives without intermediate gears and
rotational speed of 6,100 rpm, also enables operators to extend
intervals between maintenance events to help increase production uptime as well as reduce lifecycle costs, Siemens said.
This latest contract for the Phase 2 PDH plant follows Satellite Energy’s award to Siemens in 2013 for the project’s first-phase compressor train, for which Siemens supplied two of its
proprietary STC-SH ( 14) compressors and a SGT-700 gas turbine.
Under construction since 2016, Satellite Energy’s Phase 2
PDH plant will be able to produce 450,000 tonnes/year of pro-