The oil majors will have to ask themselves two big questions: who is going to make the major investments necessary to fund new projects, and what is the carbon impact of these initiatives?
Houston (PRWEB) May 6, 2008
In a panel discussion today at Rice University's Earth Science department, Dr. Nansen G. Saleri, president and CEO of Quantum Reservoir Impact and the former head of reservoir management at Saudi Aramco, elaborated on the subject of "peak oil" and the technologies and forces which will change the oil industry in the foreseeable future.
Rice University's Student Chapter of the Society of Exploration Geophysicists and the American Association of Petroleum Geologists hosted the panel, entitled "Peak Oil and Future Challenges". Dr. Saleri was joined by Amy Jaffe, an Energy Studies Fellow at the Baker Institute for Public Policy, and Paul Wallace, Vice President and Chief Technology Officer at Hunton Energy.
Dr. Saleri focused his presentation on the assumptions behind current "peak oil" projections, which he predicts will occur sometime in the second half of the century. This prediction, compared with other estimates, is based on the assumption that recovery efficiencies will increase due to technological innovation, the increasing mobility of intellectual property and human capital across international borders, and the changing relationships between International Oil Companies (IOCs), National Oil Companies (NOCs), service providers, and new "mutant" entities providing a range of innovative solutions to the energy markets.
Among the new technologies which will push recovery efficiencies are next-generation wells, real-time decision-making ability, and "smart well" technology.
"In a $117 environment, are we really going to be satisfied with an industry average of 36% recovery when much higher recoveries are technically and economically achievable? At Saudi Aramco in my previous position as head of Reservoir Management, I would not have accepted such a premise," said Dr. Saleri.
Ms. Jaffe offered commentary on the influence of NOCs versus IOCs as well, in addition to the expectations and realities of faced by oil companies in the 1990s and trends in exploration expenditures. Ms. Jaffe also commented on carbon-intensive unconventional resources, specifically in Canada.
"The constraints [on increasing oil production and productivity] are above the ground, not below, " said Ms. Jaffe. "The oil majors will have to ask themselves two big questions: who is going to make the major investments necessary to fund new projects, and what is the carbon impact of these initiatives?"
Mr. Wallace presented on major developments in alternative energy, including solar, wind, biofuels, biomass, and unconventional oil resources, with additional emphasis on the various technologies available to process alternative fuels. Formidable challenges exist to developing such alternative fuels, however Mr. Wallace found unconventional resources to be promising especially when used with Enhanced Oil Recovery (EOR) methods.
For copies of the presentations, please contact Dan Billings at [email protected]
About Quantum Reservoir Impact
Quantum Reservoir Impact (QRI) was formed on September 1, 2007. QRI intends to identify and exploit value creation opportunities in future and currently operating petroleum projects and to implement improvements in reservoir management that enhance production performance and expected ultimate recoveries. QRI's mission is to strive to create maximum incremental value in the form of barrels and capital for their clients.
QRI has developed an unparalleled new engine for reservoir management - RCAA™ (Reservoir Competency Asymmetric Assessment). The speed and accuracy of RCAA™ vastly outpaces today's conventional reservoir analysis methods. With rapid, yet comprehensive analysis of complex, multi-faceted, reservoir performance data generated by RCAA™ - together with intellect and experience resident within the QRI group, it can offer accurate opinions, to complex issues, in record time.
QRI's mission is to strive to create maximum incremental value in the form of barrels and capital for our clients.