Investment in Emerging Oil and Gas Technologies | Russell T. Rudy Energy LLC
“Rigzone” cites a study by Lux Research which found that from 2003 to 2013, investment in oil and gas technology has focused on unconventional, deepwater, tight and heavy oil resources. During this period, $7 billion has been invested in new technologies, primarily involving drilling and completions in unconventional plays.
However, the focus seems to be shifting toward technologies which provide operators with more and better information about the production process itself. Promising areas include microseismic, chemical tracers, and downhole fiber optic sensors, all of which endeavor to increase recovery rates from tight oil reservoirs. Currently recovery rates from tight oil wells is less than 10% as opposed to 20-70% from conventional wells. Given these low recovery rates, operators in unconventional plays have resorted to drilling additional wells to enhance recovery of reserves. Economic performance would improve significantly if recovery rates from existing wells could increase to the point that additional drilling could be minimized.
For now, the future for investment in these emerging technologies appears favorable as Lux estimates that the breakeven for most shale plays is $60 per barrel. The firm also sees a number of acquisitions of new technology firms on the horizon. Prime targets are Acoustic Zoom Inc. (robotic technology for drill floor operations), and Field Upgrading (commercialization of bitumen and heavy oil upgrading).
Lux also noted that for the last 10 years, Schlumberger has been the most prolific investor in exploration and production technology. This in turn has enabled the company to stay a step ahead of its competition in introducing technology solutions before its competitors are able to do so.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=136113&utm .
