ESEM study of illite/smectite freshwater sensitivity in sandstone reservoirs

The water sensitivity of authigenic smectite- and illite-rich illite/smectites in sandstone reservoirs has been investigated using an Environmental Scanning Electron Microscope (ESEM). The ESEM enabled the illite/smectites to be directly observed in situ at high magnification during freshwater immersion, and was also particularly effective in allowing the same selected illite/smectite areas to be closely compared before and after freshwater treatments. The tendency of authigenic smectite-rich illite/smectite to swell on contact with fresh water varies greatly. Smectite-rich illite/smectite may osmotically swell to many times its original volume to form a gel which greatly reduces porosity and permeability, or may undergo only a subtle morphological change which has little or no adverse effect on reservoir quality. Authigenic illite-rich illite/smectite in sandstones does not swell when immersed in fresh water. Even after prolonged soaking in fresh water, illite-rich illite/smectite particles retain their original morphology. Accordingly, illite-rich illite/smectite in sandstones is unlikely to cause formation damage if exposed to freshwater-based fluids. © 1993.

Characterisation of micrinite in the late triassic Callide Coal Measures

Samples from the Callide Coal Measures, Queensland, Australia, containing the minor maceral, micrinite, have been studied using optical and electron-optical techniques to determine the precise compositional and structural nature of micrinite when in association with vitrinite macerals. Emphasis has been placed on direct spatial correlation of optical and electron-optical data due to the fine grain size (<1μm) of micrinite and its relatively low abundance compared with other macerals in the Callide Basin coals. Precise elemental, morphological and structural data, including electron diffraction, provides unambiguous evidence for the presence of kaolinite in the component known as micrinite. Indeed, micrinite consists predominantly of fine-grained kaolinite (>90 per cent of the component) and, as such, should not be considered a maceral.

Evaluating the role of deep granitic rocks in generating anomalous temperatures in SW-Queensland

Across central Australia and south-west Queensland, a large (~800,000km2) subsurface temperature anomaly occurs (Figure 1). Temperatures are interpreted to be greater than 235°C at 5km depth, ca. 85°C higher than the average geothermal gradient for the upper continental crust (Chopra & Holgate, 2005; Holgate & Gerner, 2011). This anomaly has driven the development of Engineered Geothermal Systems (EGS) at Innamincka, where high temperatures have been related to the radiogenic heat production of High Heat Producing Granites (HHPG) at depth, below thermally insulative sedimentary cover (Chopra & Holgate, 2005; Draper & D’Arcy, 2006; Meixner & Holgate, 2009). To evaluate the role of granitic rocks at depth in generating the broader temperature anomaly in SW-Queensland, we sampled 25 granitic rocks from basement intervals of petroleum drill cores below thermal insulative cover along two transects (WNW–ESE and NNE–SSW — Figure 1) and performed a multidisciplinary study involving petrography, whole-rock chemistry, zircon dating and thermal conductivity measurements.

Characterization of tight gas reservoir pore structure using USANS/SANS and gas adsorption analysis

Small-angle and ultra-small-angle neutron scattering (SANS and USANS) measurements were performed on samples from the Triassic Montney tight gas reservoir in Western Canada in order to determine the applicability of these techniques for characterizing the full pore size spectrum and to gain insight into the nature of the pore structure and its control on permeability. The subject tight gas reservoir consists of a finely laminated siltstone sequence; extensive cementation and moderate clay content are the primary causes of low permeability. SANS/USANS experiments run at ambient pressure and temperature conditions on lithologically-diverse sub-samples of three core plugs demonstrated that a broad pore size distribution could be interpreted from the data. Two interpretation methods were used to evaluate total porosity, pore size distribution and surface area and the results were compared to independent estimates derived from helium porosimetry (connected porosity) and low-pressure N2 and CO2 adsorption (accessible surface area and pore size distribution). The pore structure of the three samples as interpreted from SANS/USANS is fairly uniform, with small differences in the small-pore range (<2000 Å), possibly related to differences in degree of cementation, and mineralogy, in particular clay content. Total porosity interpreted from USANS/SANS is similar to (but systematically higher than) helium porosities measured on the whole core plug. Both methods were used to estimate the percentage of open porosity expressed here as a ratio of connected porosity, as established from helium adsorption, to the total porosity, as estimated from SANS/USANS techniques. Open porosity appears to control permeability (determined using pressure and pulse-decay techniques), with the highest permeability sample also having the highest percentage of open porosity. Surface area, as calculated from low-pressure N2 and CO2 adsorption, is significantly less than surface area estimates from SANS/USANS, which is due in part to limited accessibility of the gases to all pores. The similarity between N2 and CO2-accessible surface area suggests an absence of microporosity in these samples, which is in agreement with SANS analysis. A core gamma ray profile run on the same core from which the core plug samples were taken correlates to profile permeability measurements run on the slabbed core. This correlation is related to clay content, which possibly controls the percentage of open porosity. Continued study of these effects will prove useful in log-core calibration efforts for tight gas.

A USANS/SANS study of the accessibility of pores in the barnett shale to methane and water

Shale is an increasingly important source of natural gas in the United States. The gas is held in fine pores that need to be accessed by horizontal drilling and hydrofracturing techniques. Understanding the nature of the pores may provide clues to making gas extraction more efficient. We have investigated two Mississippian Barnett Shale samples, combining small-angle neutron scattering (SANS) and ultrasmall-angle neutron scattering (USANS) to determine the pore size distribution of the shale over the size range 10 nm to 10 μm. By adding deuterated methane (CD4) and, separately, deuterated water (D2O) to the shale, we have identified the fraction of pores that are accessible to these compounds over this size range. The total pore size distribution is essentially identical for the two samples. At pore sizes >250 nm, >85% of the pores in both samples are accessible to both CD4 and D2O. However, differences in accessibility to CD4 are observed in the smaller pore sizes (∼25 nm). In one sample, CD4 penetrated the smallest pores as effectively as it did the larger ones. In the other sample, less than 70% of the smallest pores (<25 nm) were accessible to CD4, but they were still largely penetrable by water, suggesting that small-scale heterogeneities in methane accessibility occur in the shale samples even though the total porosity does not differ. An additional study investigating the dependence of scattered intensity with pressure of CD4 allows for an accurate estimation of the pressure at which the scattered intensity is at a minimum. This study provides information about the composition of the material immediately surrounding the pores. Most of the accessible (open) pores in the 25 nm size range can be associated with either mineral matter or high reflectance organic material. However, a complementary scanning electron microscopy investigation shows that most of the pores in these shale samples are contained in the organic components. The neutron scattering results indicate that the pores are not equally proportioned in the different constituents within the shale. There is some indication from the SANS results that the composition of the pore-containing material varies with pore size; the pore size distribution associated with mineral matter is different from that associated with organic phases.

Distribution of organic-rich sediments through the Phanerozoic

It is commonly assumed that rates of accumulation of organic-rich strata have varied through geologic time with some periods that were particularly favorable for accumulation of petroleum source rocks or coals. A rigorous analysis of the validity of such an assumption requires consideration of the basic fact that although sedimentary rocks have been lost through geologic time to erosion and metamorphism. Consequently, their present-day global abundance decreases with their geologic age. Measurements of the global abundance of coal-bearing strata suggest that conditions for coal accumulation were exceptionally favorable during the late Carboniferous. Strata of this age constitute 21% of the world's coal-bearing strata. Global rates of coal accumulation appear to have been relatively constant since the end of the Carboniferous, with the exception of the Triassic which contains only 1.75% of the world's coal-bearing strata. Estimation of the global amount of discovered oil by age of the source rock show that 58% of the world's oil has been sourced from Cretaceous or younger strata and 99% from Silurian or younger strata. Although most geologic periods were favourable for oil source-rock accumulation the mid-Permian to mid-Jurassic appears to have been particularly unfavourable accounting for less than 2% of the world's oil. Estimation of the global amount of discovered natural gas by age of the source rock show that 48% of the world's oil has been sourced from Cretaceous or younger strata and 99% from Silurian or younger strata. The Silurian and Late Carboniferous were particularly favourable for gas source-rock accumulation respectively accounting for 12.9% and 6.9% of the world's gas. By contrast, Permian and Triassic source rocks account for only 1.7% of the world's natural gas. Rather than invoking global climatic or oceanic events to explain the relative abundance of organic rich sediments through time, examination of the data suggests the more critical control is tectonic. The majority of coals are associated with foreland basins and the majority of oil-prone source rocks are associated with rifting. The relative abundance of these types of basin through time determines the abundance and location of coals and petroleum source rocks.

Who drives E&P innovation?

Few would argue that the upstream oil and gas industry has become more technology- intensive over the years. At the same time, the increasing costs and complexity of today’s exploration and production (E&P) technologies are making it increasingly difficult for any one company to support an aggressive research and development (R&D) agenda single handedly. The coming together of these two evolutionary forces gives rise to important questions. How does innovation happen in the E&P industry? Specifically, what ideas and inputs flow from which parts of the industry’s value network, and where do these inputs go? And how do firms and organizations from different countries contribute differently to this process? This survey was designed to shed light on these issues.

Australia's mining interests within Nigeria and Libya : policies, corruption and conflict

Crude petroleum remains the single most imported commodity into Australia and is sourced from a number of countries around the world (Department of Foreign Affairs and Trade (DFAT), 2011a). While interest in crude petroleum is widespread, in recent years Australia's focus has been drawn to the continent of Africa, where increased political stability, economic recovery and an improved investment climate has made one of the largest oil reserves in the world increasingly more attractive. Despite improvement across the continent, there remain a number of risks which have the potential to significantly damage Australia's economic interests in the petroleum sector,including government policies and legislation, corruption and conflict. The longest exporters of crude petroleum products to Australia – Nigeria and Libya – have been subject to these factors in recent years and, accordingly, are the focus of this paper. Once identified, the impact of political instability, conflict, government corruption and other risk factors to Australia's mining interests within these countries is examined, and efforts to manage such risks are discussed.

The use of artificial neural networks for identifying sustainable biodiesel feedstocks

Over the past few decades, biodiesel produced from oilseed crops and animal fat is receiving much attention as a renewable and sustainable alternative for automobile engine fuels, and particularly petroleum diesel. However, current biodiesel production is heavily dependent on edible oil feedstocks which are unlikely to be sustainable in the longer term due to the rising food prices and the concerns about automobile engine durability. Therefore, there is an urgent need for researchers to identify and develop sustainable biodiesel feedstocks which overcome the disadvantages of current ones. On the other hand, artificial neural network (ANN) modeling has been successfully used in recent years to gain new knowledge in various disciplines. The main goal of this article is to review recent literatures and assess the state of the art on the use of ANN as a modeling tool for future generation biodiesel feedstocks. Biodiesel feedstocks, production processes, chemical compositions, standards, physio-chemical properties and in-use performance are discussed. Limitations of current biodiesel feedstocks over future generation biodiesel feedstock have been identified. The application of ANN in modeling key biodiesel quality parameters and combustion performance in automobile engines is also discussed. This review has determined that ANN modeling has a high potential to contribute to the development of renewable energy systems by accelerating biodiesel research.

Assessing the suitability of market approach valuation methods for mine and quarry valuations

An area of property valuation that has attracted less attention than other property markets over the past 20 years has been the mining and extractive industries. These operations can range from small operators on leased or private land to multinational companies. Although there are a number of national mining standards that indicate the type of valuation methods that can be adopted for this asset class, these standards do not specify how or when these methods are best suited to particular mine operations. The RICS guidance notes and the draft IVSC guidance notes also advise the various valuations methods that can be used to value mining properties; but, again they do not specify what methods should be applied where and when. One of the methods supported by these standards and guidelines is the market approach. This paper will carry out an analysis of all mine, extractive industry and waste disposal sites sale transactions in Queensland Australia, a major world mining centre, to determine if a market valuation approach such as direct comparison is actually suitable for the valuation of a mine or extractive industry. The analysis will cover the period 1984 to 2011 and covers sale transactions for minerals, petroleum and gas, waste disposal sites, clay, sand and stone. Based on this analysis, the suitability of direct comparison for valuation purposes in this property sector will be tested.

Cloud computing : what upstream oil and gas can learn from other industries

The topic of “the cloud” has attracted significant attention throughout the past few years (Cherry 2009; Sterling and Stark 2009) and, as a result, academics and trade journals have created several competing definitions of “cloud computing” (e.g., Motahari-Nezhad et al. 2009). Underpinning this article is the definition put forward by the US National Institute of Standards and Technology, which describes cloud computing as “a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction” (Garfinkel 2011, p. 3). Despite the lack of consensus about definitions, however, there is broad agreement on the growing demand for cloud computing. Some estimates suggest that spending on cloudrelated technologies and services in the next few years may climb as high as USD 42 billion/year (Buyya et al. 2009).

How does innovation happen in the upstream oil & gas industry? Insights from a global survey

Few would argue that the upstream oil & gas industry has become more technology-intensive over the years. But how does innovation happen in the industry? Specifically, what ideas and inputs flow from which parts of the sector’s value network, and where do these inputs go? And how do firms and organizations from different countries contribute differently to this process? This paper puts forward the results of a survey designed to shed light on these issues. A joint research initiative between the Society of Petroleum Engineers and the Queensland University of Technology, the survey was sent to 469 executives and senior managers who played a significant role with regards to R&D and/or technology deployment in their respective business units. A total of 199 responses were received from a broad range of organizations and countries around the world. Several interesting themes and trends emerge from the results, including: (1) service companies tend to file considerably more patents per innovation than other types of organization; (2) over 63% of the deployed innovations reported in the survey originated in service companies; (3) neither universities nor government-led research organizations are considered to be valuable sources of new information and knowledge in the industry’s R&D initiatives; and (4) despite the increasing degree of globalization in the marketplace, the USA still plays an extremely dominant role in the industry’s overall R&D and technology deployment activities. By providing a detailed snapshot of how innovation happens in the upstream oil & gas sector, this paper provides a valuable foundation for future investigations and discussions aimed at improving how R&D and technology deployment are managed within the industry.

Perdido : the first Smart Field in the western hemisphere

Located in the Gulf of Mexico in nearly 8,000 feet of water, the Perdido development is the world’s deepest spar and Shell’s first Smart Field in the Western hemisphere. Jointly developed by Shell, BP, and Chevron, the spar and the subsea equipment connected to it will eventually capture approximately an order of magnitude more data than is collected from any other Shell-designed and managed development currently operating in the Gulf of Mexico. This paper will describe Shell’s Smart Fields design philosophy, briefly explain the five design elements that underpin “smartness” in Shell’s North and South American operations—specifically, remote assisted operations, exception-based surveillance, collaborative work environments, hydrocarbon development tools and workflows, and Smart Fields Foundation IT infrastructure—and shed light on the process by which a highly customized Smart Fields development and management plan was put together for Perdido.

Business value from intelligent fields

The Smart Fields programme has been active in Shell over the last decade and has given large benefits. In order to understand the value and to underpin strategies for the future implementation programme, a study was carried out to quantify the benefits to date. This focused on actually achieved value, through increased production or lower costs. This provided an estimate of the total value achieved to date. Future benefits such as increased reserves or continued production gain were recorded separately. The paper describes the process followed in the benefits quantification. It identifies the key solutions and technologies and describes the mechanism used to understand the relation between solutions and value. Examples have been given of value from various assets around the world, in both existing fields and in green fields. Finally, the study provided the methodology for tracking of value. This helps Shell to estimate and track the benefits of the Smart Fields programme at company scale.