New Exploration Tech Finds 1.5 Billion Barrels Of Oil In Alaska

[Pitcher]

New Exploration Tech Finds 1.5 Billion Barrels Of Oil In Alaska

 Jan 29, 2019, 5:00 PM CST

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Digital technology adoption in all stages of upstream operations in the oil and gas industry has seen a steep rise recently. While a lot has been written about the benefits of digitizing various aspects of the well-drilling, extraction, and field maintenance processes, there is also another major field where digital tech is changing the game: before the well-drilling even begins.

In Alaska, for instance, new technology in oil and gas exploration has led to the discovery of more than 1.5 billion barrels of crude oil in the North Slope in just two years, S&P Global Platts recently reported. These are deposits that were known to be there but the resources they held could not be mapped or measured, so the deposits were considered unproductive before digital tech, in the form of advanced 3D seismic surveys and new data processing techniques, came along.

So, established exploration methods are one area where there is a surge of improvements but there are also alternative exploration techniques emerging, such as soil analysis. A Dutch company, Biodentify, collects thousands of soil samples to analyze the DNA of thousands of microorganisms for traces of hydrocarbons in their environment. The company utilizes machine learning for the task and to calculate the potential reserves of a deposit with, according to the company, more than 70 percent accuracy. What’s more, the whole procedure takes between 6 and 10 weeks, which is a relatively short time, especially in light of the fact that it reduces the risk of drilling unproductive wells.

As digital technology matures and machine learning techniques advance, we’ll probably be seeing a lot more different exploration techniques that reduce the risk of spending millions on a well only to find out it’s dry. Despite last year’s international oil price improvements, the industry is still being cautious and there are indications it is beginning to like this new normal of leaner and meaner, to a significant extent enabled by technology. 

 

Oil and gas companies, even the most resilient and successful among them, are keeping their spending under control. True, some supermajors have announced larger budgets for this year than last but for the most part, the industry is keeping a lid on expenses and trying to get more from every dollar spent than before.

This is an environment conducive to a lot of innovation in all stages of the production process. New drilling tech is also helping lower costs and improve results. S&P Global Platts’ Tim Bradner notes coiled tubing drilling as an alternative to the multilaterals in horizontal drilling. Coiled tubing involves drilling horizontal wells with a flexible tubing bit, which is cheaper than drilling with rotary rigs. It could be so cheap, in fact, that drilling costs per barrel of new oil in already producing fields could be as little as US$30.

Shell, on the other hand, is focusing on developing artificial intelligence to use in drilling, among other things. Business and tech expert Bernard Marr wrote recently in a story about his work on data strategy with the supermajor that Shell is using reinforcement learning, a form of machine learning, to improve drilling results and also reduce wear and tear on the equipment, which ultimately, once again, saves costs.

The list of examples can continue and it will only become longer in the future. The oil and gas industry has been remarkably fast in adopting what digital technology has to offer and spurring innovation aimed specifically at the industry.

 

https://oilprice.com/Energy/Crude-Oil/New-Exploration-Tech-Finds-15-Billion-Barrels-Of-Oil-In-Alaska.html

[8th ID]

Drill Baby Drill !!!!

 

21 minutes ago, Pitcher said:

It could be so cheap, in fact, that drilling costs per barrel of new oil in already producing fields could be as little as US$30.

I like this part! The USA is back on top !!!

[madisonjar]

Drill only after Iraq gets the money they need to RV, hopefully all this finding oil puts pressure on them to push the switch earlier rather then later

 

[Pitcher]

There is so much oil in Alaska and the Arctic.  Russia, Canada, and the US are all over it.  It wouldn’t surprise me to see a war over that region. 

[Texstorm]

There is no shortage of oil ! Never has been never will be ... it's only the production of it's biproduct through refineries. The world will never run out of a renewable resource that just keeps on given. Most living matter turns to oil in the right conditions. If you don't like oil...quit driving...if you don't like oil ....turn off your AC...if you don't like oil turn off your heat....if you don't like oil quit eating...if you don't like oil.. if you don't like oil quit flying..... you don't know Jack ! We all are dependent on oil for most everything in our  life's !  There is not one tree hugger , there is not one vegiterian , there is not one climatetolagist , the is not one scientist , there is not one proctologist (LoL) , there is not one liberal ..... there is not one of us on the planet , that can do with out oil and it's bi- products. Get a life ! Recycle if it really makes you feel good ! Or just shut TFU ! What a bunch of synthetic panty wearing  SOB's "  wearing panties or wearing clothes " that's all made from oil ! 

[Pitcher]

I agree Texstorm. I learned that in the late 70’s when I worked for Exxon. 

[Calijim]

Sounds like a fat lady somewhere  has just sang, dropped the mike and left the building.....👍👍👍