TIGHT GAS SPECIAL REPORT
because we are working with a lot of exploration wells, which is expensive.” But, for the time being, the upper management levels are willing to fund this research and gain that hugely valuable knowledge. “There is the chance they could pull the plug and wait for technology to move along five years, but the message we are hearing is that this is about really learning and understanding what our technology gaps are – so the gas price has not altered that desire,” he says.
where the sweet spots are. There are still a lot of challenges out there in terms of geophysics and geology and petrophysics and other domains, but we have some extremely encouraging case studies from both North America and Saudi Arabia where production increases are not only encouraging, but profitable operations.”
RIGHT LOCATION A great deal of the learning taking place through the TGCoE will be applicable to many mar-
“The reserves recoverable will be huge once we understand where the sweet spots are” Lee Ramsey, Schlumberger
According to Ramsey, IOC partners in Saudi Arabia have been working with production rates two or three times below economical expectations. “If a field is targeting 10 Million scfd a day, and production is falling short of 3 million scfd a day, then it’s time to look very closely at the problem, but that’s where we can help,” beams Ramsey. The economic imperative is there, and it is encouraging to see that today’s bottom line isn’t holding back this essential research. “The amount of reserves recoverable will be huge once we understand
45% Unconventional gas constitutes about 45% of estimated global recoverable reserves of 850 trillion cubic metres. Source: IEA
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kets, both regionally and internationally, but what was really exceptional, and made Saudi Arabia a great fit was a combination of the potential, the activity levels in the country, and particularly the level of collaboration between the companies involved, explains Ramsey. “The importance of gas to regional economies has changed – so that is perhaps a game changer. Having been through the prolific gas wells, and then the deep tough stuff, I think the evolution in the Gulf region will follow the same pattern that the North American market has been through.” The extent of the reserves that exist in Saudi Arabia’s tight gas fields simply can’t be ignored. And despite a bumpy 2009 for gas prices (though largely confined to a sickly North American market) the desire to push ahead with tight gas projects has not abated in Saudi Arabia, in fact, it is prov-
Oil&Gas Middle East December 2009
The drilling of multiple stage exploration wells is yielding encouraging results. ing a powerful draw for new recruits, explains Ramsey. “Firstly the domestic energy needs of GCC countries are powerful motivators to learn more about this type of resource. And because it is so important, and such a challenge, with a great opportunity, we are actually being approached by people who are ready for a new challenge in their career, and this is where they want to be.” In North America Shale gas, once a classic “non-conventional” resource are now becoming the “new conventional”.
Similarly with tight gas, people are now delivering such encouraging results that in certain circles it’s discussed as the new conventional. “That’s probably a bit of bravado and going a bit far,” laughs Ramsey. For tight gas specialists and the companies that master the know-how the future appears bright indeed. “Today it is possible. It’s challenging, but by building the expertise to tackle the challenges of the future we are unlocking valuable reserves,” concludes Ramsey.
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