Petrochem/Utilities Industry Trends

Operating in Sensitive Offshore Environments

Issue Table of Contents

Ensuring Offshore Safety Focusing on Offshore Standards: Q&A with Bruce Reynolds Operating in Sensitive Offshore Environments Deepwater Exploration & Safety Standards and Related Publications

While exploring and producing oil and natural gas in previously untapped deepwater areas can be lucrative, operating in such remote environments offers oil and gas companies unique challenges. Combined with the requirements of a complex ecological environment teaming with a multitude of plant and aquatic life, such operations put even more pressure on upstream companies to be ever more innovative.

In recognition of the needs of sensitive environments such as offshore areas, the oil and gas industry has long invested in new technologies designed to maximize efficiencies and minimize the impact on the environment. According to a study published in March by the American Petroleum Institute, U.S. Oil and Natural Gas Industry’s Environmental Expenditures: 1992-2001, the industry continues to increase its investment in the environment, with $8.7 billion spent by U.S. companies in 2001, a 12 percent increase over the previous year. While the majority of this was spent on refining, 20 percent was spent on exploration and production.

New technologies are continually being developed by the industry to operate both cost-effectively and in an environmentally conscious manner. Despite popular belief, these are not mutually exclusive activities. Many new exploration and production technologies benefit both the environment and companies’ bottom lines.

Advanced techniques for locating oil and gas resources are one example of mutually beneficial technologies. Three-dimensional seismic technology, in use for approximately 25 years, has already been providing companies with more accurate exploration data through the creation of multi-dimensional representations of subsurface areas, but newer four-dimensional time-lapse imaging is continuing to improve the ability of companies to locate resources. These and other types of remote sensing and exploration technologies mean more targeted drilling and less unnecessary activity and disruption to the environment.

New offshore platforms are also being designed to protect the environment as well. Subsea completion technology has provided deep-sea operators with the ability to drill multiple wells while reducing the risk of spillage. Built-in systems for blowout prevention on modern-day platforms are helping to protect marine life by continuously monitoring subsurface and subsea conditions. These systems can quickly shut down live wells depending upon the situation, lessening the chances of expensive and damaging oil spills.

Another way companies are saving money and preventing accidents is through the use of computers to virtually build new offshore platforms before actual construction begins. In doing so, they are able to find problem areas before committing the resources to expensive and potentially dangerous projects.

Additionally, deepwater and ultra-deep water operations are using remote operating technology to increase the reach of their production platforms. Subsea wells can be run remotely, so that they can be spread over a wide area developing oil and gas resources, yet remain tied into a single platform. This increases production capabilities while decreasing the need for additional platforms and minimizes the disruption of the local marine life.

Horizontal, multilateral, and directional drilling are all advanced drilling techniques that also allow upstream companies to reach more reserves from the same well. With these technologies, a well can now reach deeper and previously inaccessible deposits. While the cost of doing so is more expensive than traditional vertical wells, the increase in production enables these wells on average to easily outstrip the return on investment made with traditional wells. Additionally, these techniques allow companies to establish a smaller footprint in environmentally sensitive areas while reaching larger oil and gas deposits.

Measurement-while-drilling (MWD) technology has supported the explosive growth of horizontal drilling. Using drills with highly specialized sensors, MWD allows for the transmission of bottom-hole information to the surface in real-time, helping to steer the direction of the well to maximize production levels. This minimizes the number of exploration and production operations needed to produce the same oil and gas resources.

New technologies such as these are allowing companies to venture farther with offshore projects, reaching remote locations previously considered inaccessible. And they are able to do so while minimizing their impact on the environment. It is a trend that the industry is sure to follow for many years to come.¹