Issue: July 2022


World Oil editorial: UK Conservatives should have thrown out Johnson sooner

The political heat finally got to be too much for a host of members of PM Boris Johnson’s government, as well as other Conservative MPs. The movement to force Johnson out of his role as UK Prime Minister gained critical mass over the last several days, culminating in Johnson’s announcement on Thursday that he would resign.

Pump sand protection technology extends ESP run life in unconventional wells

A pump protection assembly has proven to safeguard pumps from sand and extend ESP run life in unconventional wells. This solution controls flowback from frac sand and other solids that can lead to overload and shutdowns. The enabling technology eliminates issues related to particle size distribution uncertainty.

The energy transition and pursuit of net-zero natural gas

In seven years, BKV Corporation has become one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer in the Barnett Shale.

ESG will not save oil and gas companies — customer focus will

Industry CEOs should be prioritizing customer value above all else.

Dallas Fed: E&P activity increases, but costs and supply chain delays worsen

After improving considerably during first-quarter 2022, E&P activity in the southwestern U.S. grew further in the second quarter, hitting its highest level in the Dallas Fed survey’s six-year history. However, cost escalations and supply chain issues are major problems.

Guyana-Suriname Regional Report: The overly generous PSA may be history

Pay-to-play time is likely nigh in Guyana, as the tiny nation appears poised to flex the economic muscle that comes with the rapid ascension from an obscure extra to a starring role on the world petroleum stage.

Reflecting on 2021 global LNG and European pipeline flows

Over the past year, liquefied natural gas (LNG) prices reached an all-time high. An analysis of the data identifies key insights into the implications for the LNG industry for 2022 and beyond.
Special Focus: Permian Basin Technology/Shale Technology

Engineering simulation can reduce CAPEX and OPEX for fractured shale wells in the Permian basin

Predicting sand erosion, using computer simulation, and exploring ways in which the reliability of the predictions has been enhanced, leading to safer, more efficient operations.

The great saltwater flood in the Permian Basin

The Permian produces billions of barrels of highly saline water every year. Water management must be optimized to facilitate the projected increase in oil and gas production in the coming years. However, new regulations related to induced seismic activity pose major headwinds to water management and production growth.

Investing in oilfield electrification will reduce GHG emissions

Oilfield electrification has become increasingly important over the last several years, as E&P companies invest in long-term infrastructure in shale play holdings to help achieve net zero goals.

What's New in Exploration: Rocks can save or kill the planet

In the category of not throwing rocks, while SEG and AAPG waived formally merging, the two societies are, for the first time, in their respective histories co-sponsoring their annual conventions/conferences during the same week, at the same facility, in Houston this fall.

The Last Barrel: Oilfield electrification, race to net-zero

Although the call for significant change and transformation of the oil and gas industry was underway prior to the Covid-19 outbreak, the drive to develop new technology to increase efficiency, lower costs and reduce GHG emissions was accelerated by the pandemic.

Executive Viewpoint: The solution to our energy crisis does exist

Faced with oppressively high prices at the pump and escalating energy costs that negatively impact our daily lives, one must wonder: what can be done to rectify this situation?

First Oil: Despite many things, oilfield innovation continues at swift pace

We refer to things like poor, deliberately counterproductive energy policies in some countries; a lack of manpower resources from which to draw more technical talent; supply chain problems; shortages of certain raw materials; and inflationary costs for just about everything. Yet the pace of new technology development remains strong.

The ESG Perspective: The ESG fork in the road

On June 30, 2022, the U.S. Supreme Court ruling in the case of West Virginia vs. the EPA caused a panic amongst anti-oil activists. Some consider this the beginning of an ESG rollback, but I believe this is an overreaction.

Drilling Advances: Fundamentals are great, but...

After years of operating on beer budgets, service and supply companies have every reason to uncork the champagne these days. However, the Dom Pérignon may have to remain on ice for now, as bright prospects run headlong into near-record inflation, supply chain bottlenecks, repercussions from the Ukrainian war and China’s Covid-induced lockdown.

Industry at a Glance

Despite rising interest rates and fear of economic recession, crude prices climbed in July, as the war in Ukraine continued to restrict Russian supply. WTI surged 4.8%, hitting $114.84/bbl, with Brent trading at $122.71/bbl, up 8.3% compared to May.
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