2019 May-June OILMAN Publisher 

Letter from the Publisher (May-June 2019)

Not many of us would have guessed the deal of the quarter that blasted the energy headlines last month. Chevron announced that it was acquiring Anadarko for $33 billion in cash and stock or $65 per share. The merger places Chevron in a significant position with a wide corridor of acreage in the Permian. Since the blockbuster deal was announced,… Read More
IoT in The Oil and Gas Industry 2019 May-June 

IoT in The Oil and Gas Industry

The oil and gas industry faces technical challenges unique to its business, with hundreds of thousands of onshore and offshore wells distributed over wide geographic areas and thousands of miles of pipelines requiring continuous monitoring, periodic maintenance, and constant connectivity to ensure safety and optimized performance. As new, Internet-enabled technologies emerge to help address the operating challenges in these environments,… Read More
Continuous “Hands Off” Insulation Resistance Testing of Critical Motors 2019 May-June 

Continuous “Hands Off” Insulation Resistance Testing of Critical Motors

For decades, offshore oil and gas personnel have performed insulation resistance tests with handheld megohmmeters to prevent motor and generator failures that lead to costly unplanned shutdowns, production interruptions and rewinding repairs. However, these tests only provide a snapshot of motor or generator health. In a matter of only a few days, windings and cables that are exposed to salt… Read More
Well No. 9 2019 May-June 

Implementing Artificial Gas Lift Earlier Can Improve Declining Wells

How an innovative approach regarding the optimum time to implement artificial gas lift has significantly improved production as wells decline – beginning on day one Even after the prep work is finished and product recovery has been initiated, there is still no surefire way for oilfield exploration and production companies to confidently know how much and for how long their… Read More
Technological Advances Cushion Oil Crisis 2019 May-June 

Technological Advances Cushion Oil Crisis

Marked by intensified volatility due to continuous sharp oil price fluctuations, the oil market experienced its longest and deepest slump in 2014-2016. However, following the oil production cut deal, the prices recovered for a brief time and reached an all-time high in 2019. The oil production cut deal between OPEC and allies, including Russia, coming to an end in June… Read More
New frac sand mines speed to market with natural gas-powered generators 2019 May-June 

Scale Sand Production with Modular Natural Gas Power

To continue to reduce costs, frac sand companies and oil companies have started to build their own frac sand mines in the Permian Basin, located mostly in the western part of Texas and in the southeastern part of New Mexico. While the quality of these in-basin frac sand mines is slightly lower than Wisconsin White Sand, operators cut millions from… Read More
Oil Markers: Useful Pricing Tools 2019 May-June 

Oil Markers: Useful Pricing Tools

Benchmark crude (oil marker) is the petroleum that serves as a pricing reference for other types of oil and oil-based securities. The benchmark makes it easier for traders, investors, analysts, and others to determine the prices of multitudes of grades of crude oil varieties and blends. Using benchmarks makes referencing types of oil easier for sellers and buyers. There is… Read More
Chart 1: Density log vs OBG. Source: Ocando, Osorio (2015). 2019 May-June 

There Is More than One Way to Practice Hydraulic Fracturing

Hydraulic fracturing is a highly practiced branch of the production discipline that is commonly used in sands with low permeability. Sometimes it is used for sand control operations and, in other cases, to increase production when it goes down. The functional principle of fracturing consists on using fluid at a higher pressure than the breaking strength of the rock, and… Read More
DevOps Provides Digital Pipelines to Cloud Benefits 2019 May-June 

DevOps Provides Digital Pipelines to Cloud Benefits

According to the World Economic Forum, digital transformation could unlock approximately $1.6 trillion of value for the Oil and Gas industry, its customers and society. This value is derived from greater productivity, better system efficiency, savings from reduced resource usage, and fewer spills and emissions. Yet, the journey to these digital transformation benefits begins with a proverbial first step which… Read More
Invaluable Land Knowledge Software and AI 2019 May-June 

Invaluable Land Knowledge Software and AI

Land management is a crucial link in the upstream management chain because the health of every exploration and production organization depends on it. Landmen must move quickly during lease-acquisition phases if they want to secure the best leases in prime exploration areas. Traditionally, this process was slow and tedious, but because of technological advances and AI, it no longer has… Read More
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