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SPECIAL REPORT

Next Generation Wireline Logging Technology for Modern Oil and Gas Operations Well Integrity – New Logging Technologies How BP Macondo Pushed Well Monitoring to the Fore Wireline Technology Undergoes a Substantial Shakeup The Latest Advances in Wireline Technology Building the Technology of the Future

Sponsored by

Published by Global Business Media


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

SPECIAL REPORT

Next Generation Wireline Logging Technology for Modern Oil and Gas Operations Well Integrity – New Logging Technologies How BP Macondo Pushed Well Monitoring to the Fore

Contents

Wireline Technology Undergoes a Substantial Shakeup The Latest Advances in Wireline Technology Building the Technology of the Future

Foreword 2 Tom Cropper, Editor

Well Integrity – New Logging Technologies

3

Marvin Rourke, GOWell International, LLC

Sponsored by

Published by Global Business Media

Published by Global Business Media Global Business Media Limited 62 The Street Ashtead Surrey KT21 1AT United Kingdom Switchboard: +44 (0)1737 850 939 Fax: +44 (0)1737 851 952 Email: info@globalbusinessmedia.org Website: www.globalbusinessmedia.org Publisher Kevin Bell Editor Tom Cropper Business Development Director Marie-Anne Brooks Senior Project Manager Steve Banks Advertising Executives Michael McCarthy Abigail Coombes Production Manager Paul Davies For further information visit: www.globalbusinessmedia.org The opinions and views expressed in the editorial content in this publication are those of the authors alone and do not necessarily represent the views of any organisation with which they may be associated. Material in advertisements and promotional features may be considered to represent the views of the advertisers and promoters. The views and opinions expressed in this publication do not necessarily express the views of the Publishers or the Editor. While every care has been taken in the preparation of this publication, neither the Publishers nor the Editor are responsible for such opinions and views or for any inaccuracies in the articles.

The Role of Technology The Continuing Need for an Experienced Corrosion Log Specialist Detecting Pipe Defects Recent Developments Both Proactive and Reactive Monitoring Temperature and Noise Logs

How BP Macondo Pushed Well Monitoring to the Fore

7

Tom Cropper, Editor

BP Fallout Addressing the Problem Modern Challenges

Wireline Technology Undergoes a Substantial Shakeup

9

Jo Roth, Staff Writer

Deepwater Drilling Cost Saving Data Gathering Logging While Drilling

The Latest Advances in Wireline Technology

11

James Butler, Staff Writer

A Changing Market Improved Technology Conveyancing

Building the Technology of the Future

13

Tom Cropper, Editor

Offshore Will be Hit by Lower Costs Deepwater Future Innovations

References 15

© 2015. The entire contents of this publication are protected by copyright. Full details are available from the Publishers. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical photocopying, recording or otherwise, without the prior permission of the copyright owner. WWW.OFFSHORETECHNOLOGYREPORTS.COM | 1


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

Foreword W

ELL INTEGRITY management has become

management solutions. In our second article,

a major area of focus over the last five years.

we examine the effect this has had on offshore

With drilling companies looking to extend the life

operations, and how the spill helped spark a

of existing oil fields while simultaneously pushing

revitalization of technology.

into deeper and more hostile areas, the demands

From then on, we focus on developing trends in the

on wireline logging equipment are growing. The

market and where this might go in the future. Modern

next generation of technology will have to provide

oil exploration creates multiple challenges from ageing

more accurate information and minimize operating

infrastructure, ultra-deepwater, high temperature and

costs while being able to endure extreme depth

pressures and deviating wells. With each of these,

and harsh conditions.

the challenge is to find applications which allow

In the first article in our report, Marvin Rourke of GOWell International explores some of the key

wirelines to operate at maximum performance while simultaneously minimizing the cost.

developments in wireline well logging technology.

These new technologies themselves bring new

He shows how the market is developing in response

challenges. Different environments require different

to a more demanding operating environment and

applications. For oil drilling companies, the big

outlines some of the latest technologies his company

challenge is to understand what these new products

is bringing into play.

can do and how they work. Only then will they be

We’ll then look at the background. The Macondo

able to get the most from wireline logging equipment.

oil spill of 2010 was a game changer for the oil and gas industry. Increasing regulatory oversight has heightened the emphasis on well integrity

Tom Cropper Editor

Tom Cropper has produced articles and reports on various aspects of global business over the past 15 years. He has also worked as a copywriter for some of the largest corporations in the world, including ING, KPMG and the World Wildlife Fund.

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SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

Well Integrity – New Logging Technologies Marvin Rourke, GOWell International, LLC GOWell is in the business of advancing Well Integrity Solutions – Read about our latest technology offerings.

W

ELL INTEGRITY monitoring is of growing importance in maturing fields as oil and gas continues to be exploited in hostile and corrosive environments with strict regulatory requirements. It is only in the last decade that the industry has embraced the need for a systematic approach to Well Integrity Management. The pace has accelerated since Macondo in April 2010 with a comprehensive update to Norway’s NORSOK D-010, the introduction of the UK’s “Well Integrity Guidelines”, Issue 1, July 2012 and last year’s ISO TS 16530 part 2. These concentrate on the operational phase of the well’s life-cycle, defined as commencing from the handover of the well after construction, to the handover prior to abandonment. Implementation of EU Directive 2013/30/EU commences in 2015 and addresses offshore safety as a result of the conclusions of the EU commission postMacondo. These guidelines and directives establish a regulatory framework for our industry to build upon along with help from the oil and gas professional organizations such as SPE and IADC.

The Role of Technology Today, software tools are available that can assist operators with Well Integrity Management by establishing monitoring and preventive maintenance programs via a well failure database and performance-based decision tools. Together, these software tools collect a vast array of relevant information from well and completion designs to well histories. Surface data includes tree inspections, SSSV & tree valve testing and tubing and casing annulus pressure measurements. Downhole data includes cement bond evaluation, tubular corrosion and deformation logs, abnormal flow and leak detection. When used effectively, these software tools can optimize preventative maintenance and reduce the overall number of problematic wells. Our industry’s growing needs are giving impetus to technology developments

to provide better equipment for evaluating well integrity both at the surface and downhole. At certain points in the lifetime of a well it is important to evaluate the tubular and annuli integrity by running logs such as cement bond evaluation, production flow, and tubular inspection logs. At the well construction phase, the cement placement is evaluated by cement bond logs and sometimes early after well completion, a baseline set of tubing and casing inspection logs are run. These baseline logs form part of a corrosion monitoring strategy which allows fieldwide predictions to be made which is especially important in areas of corrosive fluid production.

The Continuing Need for an Experienced Corrosion Log Specialist Tubing and casing integrity inspection typically consists of a combination of mechanical multifinger caliper logs (MFC), electro-magnetic (EM) pipe thickness logs, ultrasonic casing inspection logs, and downhole cameras. The workhorse for tubing and casing inspections over the past two decades has been the multi-finger imaging caliper log. Currently, a more mature MFC data analysis workflow exists, as well as more robust reporting tools. However, these are not a substitute for a knowledgeable and experienced corrosion log specialist. Today it is common to present corrosion data with an interactive software package such as MIPSPro which allows for comprehensive visualization of the corrosion log data, together with interpreted comments and annotations. MIPSPro is now an increasingly common replacement for traditional paper logs.

Detecting Pipe Defects Caliper logs are limited to profiling the pipe inside diameter (ID). To evaluate corrosion or pipe damage beyond the inner wall requires additional measurements. A key technology for tubing and casing inspection employs ElectroMagnetics (EM), as these measurements are WWW.OFFSHORETECHNOLOGYREPORTS.COM | 3


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

These software tools collect a vast array of relevant information from well and completion designs to well histories

MULTI-FINGER CALIPER SHOWING DAMAGE IN 7INCH CASING

sensitive to pipe thickness where wall thinning is associated with corrosion or other pipe defects. Commonly used methods include Magnetic Flux Leakage (MFL) and Remote Field Eddy Current (RFEC) with a number of commercially available logging tools in the market. RFEC tools are “AC” based measurements employing a lowfrequency transmitter and receiver coil(s) located some distance away, typically 2-3 times the pipe diameter being inspected. The phase shift and amplitude of the received signal are sensitive to pipe properties, including thickness. Depending on the tool configuration, the EM measurements are either sensitive uniquely to the thickness of the innermost pipe or the total metal thickness of all concentric pipes in the well. For example, in a well with a tubing completion and production casing, these RFEC tools will give either a tubing-only thickness or a total combined tubing and casing thickness value. In the later case, subtracting wall loss derived from a multi-finger caliper log can give a pseudo-casing inspection log. With transmitter and receiver coils located a significant distance apart in these RFEC tools, the vertical measurement resolution can be degraded. 4 | WWW.OFFSHORETECHNOLOGYREPORTS.COM

Recent Developments A more recent development is to use a technique called Pulsed Eddy Current (PEC) where a short, high-energy EM pulse from a transmitter coil “charges” the surrounding concentric pipes. Immediately after the excitation pulse, a colocated receiver coil measures the collapsing eddy currents. Embedded within this received “decay” curve is a complex signature that is a function of the surrounding pipe’s geometry and properties. Forward modeling and simulation reveals that early part of the decay is sensitive to only the inner pipe whereas, in later time, outer pipe signals appear. By employing an inversion processing technique, the composite decay signal can be unraveled allowing for determination of multiple tubular thicknesses. In particular the identification of corrosion or defects in a second or third outside tubular is possible. The co-located transmitter and receiver coil configuration helps improve the vertical resolution compared to RFEC tools. The advantage of this technique is that casing problems can be located without the need to “pull the completion” as the slim PEC tool can be run through tubing.


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

MODELING AND JOB PLANNER

Another application is the evaluation of surface casing behind the cemented production string. GOWell’s latest generation PEC tool the MTD-E is configurable for optimum data acquisition and is fully combinable with other casing inspection and logging sensors. To assist with job preparation and tool configuration, a software package called “MTD-E Job Planner” is available. Tool response to actual tubing and casing configurations can be predicted, which allows configuration for optimal acquisition and determination of the required processing parameters. To process the MTD-E data we employ a threestep process from raw data to final results. The first step is to determine by inversion the EM properties of each joint of the tubulars. A second inversion is then applied to simultaneously calculate the multiple thickness results and, lastly, a set of outputs is created which allow the results to be quality controlled and interpreted. This processing workflow is incorporated into the

MIPSPro package that is user-friendly and allows for interpretation and visualization of multi-finger caliper, MTD-E tool and other logging data. A side-by-side visualization of all Well Integrity data from different measurements is an important interpretation tool. Measurements which corroborate and complement each other increase the confidence level and reduce uncertainty of the interpreted results. A caliperonly interpretation could, for example, report pipe in good condition even where significant metal wall loss exists if scale or bitumen deposits are present. With additional information from an EM based inspection tool, this can then be resolved. The software tools for an integrated Well Integrity evaluation continue to evolve as there is a growing awareness and needs within the industry. GOWell and Epidote are working hand-in-hand to bring to the market a new software package for improved visualization of a wide range of measurements for Well Integrity evaluations.

MTD TOOL RUN INSIDE 3-1/2” COMPLETION SHOWING DAMAGE IN 7INCH PRODUCTION CASING

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SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

GOWell’s latest generation PEC tool the MTD-E is configurable for optimum data acquisition and is fully combinable with other casing inspection and logging sensors

Both Proactive and Reactive Monitoring Surface casing vent flow is one example of a serious well integrity problem where formation fluids uncontrollably escape to the surface. Possibly failure mechanisms include channeling through poor cement placement or by degradation of cement and subsequent pipe corrosion. In such cases, if running only standard casing inspection tools, crucial information may be overlooked such as pinpointing the exact depth of the fluid entry and the flow path to drive remedial actions. This makes a distinction between casing inspection and leak detection, the latter being always in reactive mode or “after the fact” diagnostics whereas the former serves as proactive monitoring for preventive purposes. A cement bond log may serve to identify poor cement zones to corroborate results from leak detection tools.

Temperature and Noise Logs When used regularly during a well’s lifecycle, multi-finger caliper and EM corrosion logs can be used to monitor corrosion and help mitigate serious leaks or well failures. However in situations where a downhole problem is causing a fluid leak in the tubing or casing, then additional diagnostics can be used to locate the leak. Such abnormal flow conditions can be assessed by various techniques ranging from a simple temperature log to more sophisticated leak-detection noise log. Temperature logs have been used for decades and should not be forgotten but can be tricky to interpret conclusively. Noise logs were originally acquired using a downhole hydrophone and an operator listening through a set of headphones. Today’s noise tools consist of a wide-band hydrophone with digital signal processing to produce a frequency spectrum log (spectral noise logging). However, noise logging does have its challenges. These include how to eliminate

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unwanted noise not associated with leaks while still having enough sensitivity to pickup minor leaks. In many cases this can only be achieved by a series of stationary measurements which are time-consuming to acquire and can completely miss the leak interval. GOWell’s next generation noise logging tool will feature a large array of acoustic sensors and employ processing that allows for a robust extraction of the small leak signals while logging continuously. It is sometimes not possible to reproduce leaks unless similar well conditions at which the leak occurs are recreated. Additionally, the leak may not clearly manifest unless a minimum pressure differential across the pipe or flow path is established. Such pressure differentials also make for sufficiently high velocities and associated noise beyond base line noise, necessary for leak detection/ discrimination. Certain temperature profiles may also lead to pipe expansion profiles and anomalies that may disappear or change when a different temperature profile develops. This is common in Steam Assisted Gravity Drainage wells (SAGD). The increasing needs of the oil and gas industry in the Well Integrity arena are driving the demand for new technologies. Logging measurements and techniques for casing and annuli evaluation play an important role and are continuing to evolve. GOWell is focused on developing and deploying advanced Well Integrity solutions for the global logging industry – a partner today and in the future ready to support wherever and whenever.

Contact Details 10642 W. Little York Rd. Houston, TX 77041, USA Tel: +1 (713) 909-2555 sales.usa@gowellpetro.com www.gowellpetro.com


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

How BP Macondo Pushed Well Monitoring to the Fore Tom Cropper, Editor After the Gulf of Mexico disaster, the industry is finally placing the required emphasis on well integrity management.

I

N 2010, an explosion on board a BP oil rig in the Gulf of Mexico rocked the offshore world and changed the industry forever. Among the many learnings to have come in the wake of the disaster is an increased awareness of the importance of constant monitoring of well integrity. As infrastructure ages, and rigs delve into deeper waters, the strain on equipment is growing. Although all downhole equipment is rated with an expected service life, it is becoming increasingly difficult to account for variables. Unexpected downtime, along with the risk of catastrophic failure, are to the forefront of rig operators’ minds, which creates an imperative for change. This article will focus on the emerging challenges and demands which are spurring a search for technological innovation in well monitoring.

BP Fallout The BP disaster was a perfect illustration of why deepwater exploration can be so dangerous. The explosion happened shortly after drilling on the deepwater well had been completed and just before the well was capped to allow a production rig to move into position. A failure in the concrete seal at the well-head sparked a leak which led to an explosion, discharging an estimated 4.9 million barrels of oil into the ocean. Even as the clean-up operation was underway, the search for reasons for the blowout began. Reports into the cause of the disaster have pointed to multiple failings in procedures, safety, containment and monitoring. The priority since the disaster has been to ensure the right lessons have been learned and that such a catastrophe will never happen again. A report published by the European Commission shortly after the accident identified failings in a fragmented regulatory framework which meant there was little assurance that risks were minimized throughout the union. This led to the establishment of the Offshore Directive, intended to establish a clearer international regulatory framework covering offshore oil. Meanwhile,

the Subsea Well Containment and Control Taskforce, comprised of 30 members from 20 organizations, made a list of recommendations about how to improve well safety and to contain any hydrocarbons after a spill. However, there is still work to do in developing a comprehensive and unified global response to integrity management. While significant progress has been made in the US and Europe, other areas such as East Asia remain fragmented and reliant on self-regulation.

Addressing the Problem The cumulative result of such learnings is that, for well integrity, monitoring is being treated as a major priority. Companies are investing substantial amounts into developing as clear a vision of conditions downhole as possible. BP, for example, reacted to the Macondo disaster by the establishment of a new organization with overall powers for well integrity, which reports directly to the CEO. Annual events such as the annual well integrity conference, which is now in its third year, illustrate the industry-wide attempts to use collaboration to identify challenges and solutions1. As a result of all this focus, technological innovation is moving apace as companies work hard to improve their well monitoring processes. According to all the available data it’s a good thing too. A study on the Norwegian Continental shelf by the Norwegian Petroleum Safety Authority found that a fifth of every well analyzed had integrity weaknesses2. A 2011 SPE paper on well integrity in the Gulf of Mexico found that around 45% had sustained pressure issues3.

Modern Challenges The issue is exacerbated by the modern offshore exploration environment. Advances in technology have enabled drilling companies to extend the lifecycle of existing wells and expand into environments that would previously have been considered out of reach. Doing so, though, creates a number of additional risks. WWW.OFFSHORETECHNOLOGYREPORTS.COM | 7


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

The priority since the disaster has been to ensure the right lessons have been learned and that such a catastrophe will never happen again

Many of the world’s existing oilfields are extending their life well beyond their original lifecycle as oil companies find new techniques which can enhance recovery. Under conventional primary and secondary oil recovery techniques, approximately 30% of an oil reservoir can be recovered. However, enhanced oil production techniques promise to extend dramatically this figure. The cost comes in the strain these techniques put on infrastructure, subjecting wells to increased pressure, temperature and corrosive materials. The problem is further exacerbated by the age of much of that equipment which, in many offshore areas operating today, is out of date. Wear and tear over time heightens the risk of hydrocarbon release and increased downtime for maintenance and repair. Drilling at depth brings with it a range of problems such as extreme weather high temperature and pressures. As Exploration and Production companies extend further from the shore and deeper beneath the ocean, not only do the risks of release increase, but so do the consequences. The BP disaster illustrated the difficulties of containing a spill at deepwater as oil pumped into the Gulf of Mexico for days before it was finally capped.

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Add to this a difficult commercial environment. Oil price volatility means exploration is a marginal commercial proposition. Every moment of downtime inflicts painful damage on an oil company’s profit margins. The focus is therefore on preventative measures for which effective monitoring and control is a crucial factor. This is creating a valuable market for engineering companies capable of producing the next generation of wireline well integrity monitoring systems. They are introducing new technologies to improve the accuracy of data collection with minimal impact on oil production. New software systems are enabling operators to analyze and assess data in real time, giving them on-the-spot alerts about any problems as and when they arise. The industry has made significant strides since that fateful April day, but there is much more to do. Market pressures are spurring innovation in oil production techniques. To ensure safety reaches the requisite standards, monitoring systems and data analysis software need to keep up. The result is a collection of new technological advancements coming to market over the last couple of years. This, though, will only be the beginning as the oil industry aims to ensure future oil production and recovery is as safe as possible.


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

Wireline Technology Undergoes a Substantial Shakeup Jo Roth, Staff Writer The oil and gas industry is coming under multiple pressures and these are reflected in the development of new downhole wireline tools.

T

OUGH ECONOMIC conditions have forced oil companies to make hard choices. But for all the sacrifices and savings made, offshore oil extraction remains as a priority. In today’s safety conscious world, marked by increased post-Macondo regulatory oversight, the monitoring of well integrity has become one of the primary responsibilities of E&P companies. Such demands make a fertile ground for innovation with new products coming to market promising greater costs efficiencies, superior data gathering, and the capacity to withstand unprecedentedly harsh conditions. In this article, we’ll examine the key challenges and how the industry is rising to meet them.

Deepwater Drilling For all the commercial uncertainty surrounding the market, the future of oil production is undoubtedly in deepwater, but as these deeper wells come into play, they create a number of new obstacles. These include: • Tension: These wells are often thousands of feet deep. Lowering long lengths of heavy cable exposes it to incredible levels of tension exceeding 10,000lbf. •H  igh pressure: The deepest wells take drillers into ultra-high pressure environments exceeding 30,000psi. •H  igh temperature: Some wells could be operating at 500 degrees Fahrenheit and more, taking it beyond the operational tolerances of most conventional systems. In preparing equipment for these harsh conditions, developers are redesigning every component. New products, such as the Schlumberger’s new high tension conveyancing system, benefit from extensive development to ensure they are capable of delivering maximum performance in the harshest environments. At its heart is a high

strength cable which has increased tension tolerances and can function at up to 13,000lbf. The entire conveyance system delivers a host of benefits including, increased safety in high tension environments, reduced cable maintenance, few runs and increased efficiency, which results in rig time savings4.

Cost Saving Offshore oil production has always been a costsensitive business, but the volatility surrounding prices over the past year has made the sums even tighter. The difficult market conditions have, if anything, created an opportunity for well integrity monitoring solutions. With every hour of downtime cutting into profit margins, oil companies need to minimize the amount of time required for serious maintenance. For that they need an accurate and up-to-date view of conditions in the well. Monitoring systems, therefore, assume an unprecedented level of importance in terms of oil extraction. However, while these products are required to produce the best possible results, they too must improve cost efficiency at every stage of the process. A key way to do this is to reduce wastage. One of the most important areas of advancement over the past couple of years has been in the use of digital technology. By producing digital monitoring systems which can achieve continuous wireline monitoring, operators can extend the life of equipment. Traditional methods will see the wireline deployed for as long as is needed and then discarded afterwards irrespective of its condition. Products which can provide an enhanced view of conditions, allow the possibility of re-use which creates significant incremental savings5. The overall result is to mitigate the increased risk from high tension environments while enabling tools to capture the breadth of data required at maximum efficiency.

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SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

Many of the world’s existing oilfields are extending their life well beyond their original lifecycle as oil companies find new techniques which can enhance recovery

Data Gathering As technology improves, the amount of data that can be captured is increasing. Logging tools routinely provide information such as tree inspections, tubing and casing pressure measurements, cement bond evaluation, corrosion assessment and detection of abnormal flow rates or leak identification. This can all be of crucial importance in alerting operators to any issues which might require attention. Gathering this information is one thing, but displaying it is quite another. The traditional approach of storing data and presenting it in paper presentations to be analyzed is being replaced by faster real-time data gathering which can transmit information to the surface. Operators can then view the totality of information collected in real time enabling them to make prompt and effective judgements. In delivering this functionality, companies are turning to interactive software packages which can display substantial amounts of information in real time. These can be monitored on the surface with software packages, which can seamlessly connect with the downhole logging equipment. Technology is becoming more interactive with the capacity to be accessed online from multiple sites. This in turn allows teams and individuals to see hourly updates.

Logging While Drilling Wireline logging technologies are the established norm in the oil and gas industry, but recent years have seen increasing use of Logging While Drilling (LWD) applications. These first arrived in the 1980s, but it is only now that they are beginning to be taken seriously. Historically, LWD tools were unable to compete with faster and more efficient wireline counterparts. Log 10 | WWW.OFFSHORETECHNOLOGYREPORTS.COM

quality, resolution and depth accuracy were inferior to wireline counterparts, but technology is developing and in many cases, they are now able to provide measurements with accuracy comparable to the more commonly used wireline technologies. In addition, the time of acquisition with LWD is shorter than wireline technologies. Instead of one or two days, information can be available within a few hours. This is prompting many companies to incorporate LWD into their operations – but this technology is still developing. Wireline technologies are also improving and, because they are well established, operators feel more comfortable using them. There is less of an unknown element, which makes them more reliable and dependable. Ultimately, it is likely that the most forward thinking operators will adopt a combination of both elements. This requires an understanding of the characteristics of both types of products, and the benefits they can bring. The market is in an interesting state were development is moving quickly. There are numerous providers in this space, which in turn fuels competition and promotes innovation. In developing these next generational products, though, much thought needs to be devoted to their application. Engineers and end-buyers need to be clear about what they need and the environments in which they will be operating. Developers need to provide highly effective measurement and evaluation tools to identify where and how their tools can deliver the required improvements. Because these new tools are venturing into the unknown they are having to develop new testing and assessment parameters to ensure products are equipped to operate within the harshest environments. Only then are they able to assess with certainty whether products are equipped for the harsh demands of modern oil exploitation.


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

The Latest Advances in Wireline Technology James Butler, Staff Writer Rapid development means wireline logging tools are delivering increasingly sophisticated functionality. Understanding the potential of new technologies and what they can do is crucial.

B

P’S GULF of Mexico disaster has placed well integrity at the heart of offshore oil and gas operations. As wells become deeper, monitoring multiple pieces of information is becoming a major priority. The result of this shift in emphasis has been a rapid development in the quality and sophistication available, with new techniques improving data acquisition, accuracy and efficiency. Understanding the potential this offers is crucial. This article will examine the ways in which wireline technology has developed and the ways in which it can offer real potential for oil and gas operators.

A Changing Market The traditional wireline logging method has been to lower a logging tool or string of instruments into the borehole. Information is collected and then delivered to the surface where it is presented in paper form for later analysis. Electric logs have been used since the 20s but it is only since the Macondo disaster and the greater regulatory scrutiny it brought that oil companies have been prioritizing logging data. Today they are delivering an ever-increasing range of information to improve well data management. This information is becoming increasingly valuable, given the aging nature of much offshore equipment. The industry has become highly adept at maximizing well production in mature oil fields through the use of advanced oil recovery techniques. Primary and secondary techniques can extract up to 30% of an oil reservoir, which potentially leaves vast resources untapped within rock formations. Recent years have seen the adoption of tertiary techniques with the reduction of surface tension through the injection of gasses, chemicals and steam into the reservoir. The effect is two-fold – firstly it increases the lifecycle of oil fields well beyond their original service date and secondly the use of chemicals and steam subjects downhole equipment to

temperatures and corrosive elements which can increase decay. As a result, much of the infrastructure is ageing and in questionable condition. For the sake of safety, identify issues must be identified within the well before they arise, and for the sake of profitability they must reduce the pressure on maintenance. Wireline logging has the ability to do both. Once operators are certain their rigs are in safe condition, they will be able to provide more information on production and flow rates, which enables them to better forecast the performance of the well.

Improved Technology The demands of the market are spurring innovation in measuring equipment. Calliper logging tools, which have for so long been the mainstay of wireline logging, are limited to measuring the internal width of the tubing. To identify surface thinning and corrosion, electro-magnetic logs are used, which can provide information on pipe thickness to identify potential areas of degradation. However, even some of these are limited. Older single frequency EM logging techniques were able to provide only certain levels of information which is why operators have, in recent years, progressed to multiple frequency techniques. One of the most advanced is a technique called Pulsed Eddy Current (PEC), which measures multiple thicknesses of both the inner and outer tubing. This allows a quantitative evaluation of corrosion without having to remove any tubing. The key to using this is understanding how the tool responds to pipe thicknesses. It works by supplying pulsed current into the transmitting coil of the tool. There will then be a time-varying electromotive force (EMF) in the receiving coil. If there is any thickness variation, faults or flaws in the pipe string the induced EMF will be different from its expected level. WWW.OFFSHORETECHNOLOGYREPORTS.COM | 11


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

As part of the drive to extract more oil, companies have become more adept at understanding the makeup of reservoirs

This technology has multiple uses. It can measure the thickness of tubing, detect corrosion and damage, and detect horizontal and vertical cracking. GOWell Petroleum, who use this technique, say the technology still has room for further development including the evaluation of a third pipe and increased power.

Conveyancing As part of the drive to extract more oil, companies have become more adept at understanding the makeup of reservoirs. This, combined with advanced drilling techniques, contributes to a more complex well bore. From vertical wells, the industry is expanding into deviated, s-shaped and horizontal wells. However, this makes many conventional wireline logging techniques more challenging and in some cases impossible. At a time when the acquisition of logging data is becoming even more important, obtaining that data is becoming increasingly difficult. As ever, the industry is developing more advanced tools to meet these challenges. Improvements in conveyancing technology are reducing the risk of sticking or tool loss, which could previously have resulted in costly downtime and delays. These offer the ability to gain logging

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data both in real time or memory mode, which can provide operators with the required overview of well bore conditions. The market, then, is proving adept at reacting to the challenges presented to it. The industry is developing new techniques and products which can enable it to obtain the data it needs at reduced cost and risk. With this new technology, though, come new practices and new methodologies. The training and skill of logging engineers remains an integral part of the process, if not more so. Understanding how these new tools work and how they can be used to deliver the data is critical. Equally, being able to accurately analyze the data and comprehend the information it is conveying will be critical across offshore operations. The offshore industry is undergoing a time of rapid change. The goalposts have been moved in some ways in terms of how cheaply operations must be managed. Even so, the long term global thirst for oil means offshore exploration remains a priority. Logging has possibly never had such a high priority within drilling operations. Recent years have, therefore, seen a rise in the development of innovations and technologies, but one thing is clearer than anything else – the future will almost certainly see more.


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

Building the Technology of the Future Tom Cropper, Editor The future appears to be bright for developers producing the next generation of downhole wireline well integrity monitoring systems.

A

S OIL prices took a tumble in 2014 the industry became somewhat obsessed with what-if scenarios? What if the OPEC decides not cut back on oil production? What if the US Shale boom continues? In planning for the future, much thought is being put into what the market will be like. The future of technologies such as downhole wireline equipment, therefore, will depend substantially on what direction the market takes from hereonin.

Douglas Westwood said its sales had been badly hit in 2015 with only three contracts being awarded at a total of $1.5bn. Twice as many orders were placed in the first half of the year with a combined value more than 500% higher. The disappointing figures, say DW, substantiate the view that operators are prioritizing cost saving measures. However, in the longer term, the outlook is more positive. DW said floaters with a potential $60bn value will be installed and there is potential for more than 130 future projects.

Offshore Will be Hit by Lower Costs

Deepwater

The fluctuations that hit the oil price in 2014 have a major influence on planning for the future. From highs at well over $100 per barrel in the first half of the year, they plummeted to bottom out at around $40 per barrel. Since then they have recovered to just under $60 per barrel. However, they remain vulnerable to geopolitical events. For example, at the time of writing, oil prices have fallen slightly to £56 per barrel on the announcement of a nuclear deal between the US and Iran, as speculators reacted to the prospect of more Iranian oil flooding into the market6. Assessing the future demands of oil is no easy task and depends on a variety of factors including – continued production of US Shale, OPEC’s decision to increase or lower production and ongoing geopolitical issues in Syria, Iraq and the rest of the Middle East. The number of imponderables is great and a look into the past shows that predictions are often cast aside by the turn of events. However, as things stand, the general industry consensus seems to be that it may be some time before prices approach the historic highs of 2014. Goldman Sachs’ current oil forecast placed Brent Crude at an average of $58 per barrel in 2015, rising to $62 in 20167. Such pressures and uncertainties have impacted the offshore market.

Deepwater expenditure has been hit by the low oil price. BP and Shell were both among major oil producing nations to slash their E&P budgets. Speaking at Northwestern University’ Kellogg School of Management Energy Conference, Joe Quoyseser – an advisor on oil drilling strategies – said that deepwater producers “need prices on the order of $75 to $85.” The fallout of the Deepwater Horizon disaster also has had an impact. The years after the accident saw a slowdown in deepwater exploration and an increase in costs due to increased regulatory oversight. As governments around the world seek to monitor the development of new offshore plays, that oversight is likely to become more – not less – stringent. Even so, deepwater is surprisingly resilient. This is a long term game with up to a decade between an oil discovery and the first extraction of oil. As such, investment into exploration and production continues with several major deepwater projects coming online between 2015 and 2018. The largest, Chevron’s so-called Big Foot, is expected to start producing oil in the latter half of 2015. Exploration continues to shift into new and uncharted territories. Drawn by the prospect of vast oil and gas reserves, companies are pushing WWW.OFFSHORETECHNOLOGYREPORTS.COM | 13


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

From highs at well over $100 per barrel in the first half of the year, they plummeted to bottom out at around $40 per barrel

into the Arctic, despite widespread opposition from environmental groups. This, in turn, will result in increased regulatory oversight and costs. Even so, the long term needs of the industry mean oil extraction is still seen as a pressing necessity.

Future Innovations The stage is set, therefore, for a future in which wireline technologies will become more – not less – important. Innovation will be driven by a need to manage costs, improve safety and deliver enhanced real-time information to operators on the surface. To reduce cost, operators must extend runtime and reduce down time for maintenance. Effective data gathering is crucial for this. Already much more development is being put into the sophistication of analysis software. This provides a comprehensive overview of all the data acquired downhole to be viewed in one place. The earlier operators can gather information, the quicker they can address issues before they become critical. This effective monitoring also aids in estimating the productivity and commercial viability of deepwater wells. Operators need to know that all well components are safe. Once they know that, they have a better chance of making accurate predictions about a well’s lifespan. 14 | WWW.OFFSHORETECHNOLOGYREPORTS.COM

The move into deepwater is bringing operators into contact with unprecedented conditions. New plays are requiring equipment to function at temperatures of up to 500 degrees Fahrenheit and at 30,000psi. This means new technologies have to come up with groundbreaking designs which go far beyond anything the industry has ever seen. Developers are having to go further than official testing regulations with new products being tested to 450,000psi to ensure equipment can be over-rated to cope with anything deepwater can throw at it. Variabilities in environment are also growing, with expansion into extreme environments such as the Arctic. Products will not necessarily be rated for every deepwater project, meaning operators will have to be selective about which products they use. For all the difficulties being thrown at it, the offshore market is proving to be remarkably resilient. Price volatility may be putting the squeeze on profits, but offshore oil is a long term gain. If anything, tightening profit margins mean companies will need to invest more in well integrity monitoring equipment. This, combined with the harsh environments faced by equipment operating in deepwater, means considerable investment is still needed to develop technologies for the future.


SPECIAL REPORT: NEXT GENERATION WIRELINE LOGGING TECHNOLOGY FOR MODERN OIL AND GAS OPERATIONS

References: 1

Well integrity conference: http://www.decomworld.com/well-integrity/conference-agenda.php

Assessment of Sustained Well Integrity on the Norwegian Continental Shelf: http://www.ieaghg.org/docs/wellbore/Wellbore%20Presentations/4th%20Mtg/01.pdf

2

3

Well integrity analysis: https://www.onepetro.org/conference-paper/SPE-142076-MS

4

Wireline Conveyance System: http://www.slb.com/~/media/Files/evaluation/brochures/other/deepwater_wireline_br.pdf

5

Monitoring systems extends wireline life: http://www.offshore-mag.com/articles/2013/08/monitoring-system-extends-wireline-life.html

What Iran’s Nuclear Deal means for the oil prices: http://www.smh.com.au/business/markets/what-irans-nuclear-deal-means-for-the-oil-price-20150715-gicqfh.html

6

Goldman Sachs sees Iran deal as downside risk: http://www.reuters.com/article/2015/07/15/us-iran-nuclear-oil-goldman-sachs-idUSKCN0PP0C120150715

7

WWW.OFFSHORETECHNOLOGYREPORTS.COM | 15


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