The I

nsid

e T

rack o

n t

he S

ubsea O

il &

G

as I

ndustr

y

Neil D

ougla

sM

anagin

g D

irecto

r, V

iper

Subsea

My B

ackgro

und

�G

raduate

d f

rom

Bri

sto

l in

1984 in E

lectr

ical &

Ele

ctr

onic

Engin

eeri

ng

�Jo

ined M

arc

oni Avio

nic

s (

Nailsea),

inte

ndin

g t

o s

tay f

or

2 y

ears

(le

ft a

fter

23 y

ears

)23 y

ears

)–

In w

eek 3

was s

ent

to C

osta

Dora

da

for

3 m

onth

s f

or

site w

ork

–W

ork

ed o

nshore

and o

ffshore

for

5 y

ears

as a

desig

n e

ngin

eer

�G

raduate

d f

rom

Cra

nfield

in 1

990 w

ith a

Maste

rs in S

ubsea E

ngin

eeri

ng

�Re-j

oin

ed M

arc

oni Avio

nic

s–

Took o

n a

syste

ms r

ole

–Care

er

Pro

gre

ssio

n t

hro

ugh t

o P

roje

ct

managem

ent

�Experi

enced t

hre

e m

ajo

r acquis

itio

ns o

f th

e C

om

pany

–U

ltim

ate

ly b

ecam

e G

E O

il &

Gas G

lobal Technic

al D

irecto

r fo

r Subsea

–U

ltim

ate

ly b

ecam

e G

E O

il &

Gas G

lobal Technic

al D

irecto

r fo

r Subsea

Contr

ols

�Left

GE t

o e

sta

blish V

iper

Subsea in 2

007

Agenda

�W

hat

is t

he S

ubsea O

il &

Gas I

ndustr

y?

�The w

orldw

ide o

il &

gas s

upply

challenge

�The w

orldw

ide o

il &

gas s

upply

challenge

�W

hy is it

a t

echnic

ally c

hallengin

g a

nd inte

resting industr

y?

�W

hy is t

he f

utu

re g

ood?

�W

hat

type o

f engin

eers

are

needed?

�W

hat

are

the o

pport

unitie

s?

�H

ow

do y

ou g

et

into

the industr

y�

How

do y

ou g

et

into

the industr

y

The o

il industr

y:

libra

ry p

ictu

res =

public p

erc

eption?

Hydro

carb

on R

eserv

oir S

yste

m

Mig

ration

Seal Rock

Seal Rock

Reservoir

Rock

Reservoir

Rock

Oil

Oil

Water

Water

Gas

Cap

Gas

Cap

Entr

apm

ent

Entr

apm

ent

24803

120° F

120° F

350° F

350° F

Genera

tion

Genera

tion

Mig

ration

Mig

ration

Source

Source

Rock

Rock

Off

shore

Develo

pm

ent

Syste

ms

Tra

ditio

nal D

evelo

pm

ent

Devia

ted D

rillin

g t

o m

axim

ise r

each

Tra

ditio

nal Fie

ld E

xpansio

n

Expansio

n u

sin

g S

ubsea W

ell

Expansio

n u

sin

g M

ultip

le S

ubsea W

ells

Why B

oth

er

with a

Pla

tform

?

A T

ypic

al S

ubsea D

evelo

pm

ent

Atlantis c

oncept

Atlantis s

ize

FPSO

West

of Shetland

Typic

al Subsea D

evelo

pm

ent

Layout

vetc

ogray

Subsea H

orizonta

l ‘T

ree’

Subsea C

ontr

ol M

odule

Item

Typical Cost 5th

generation

Managem

ent

5,5

00 $

/d

Curr

ent

Mobile D

rillin

g U

nit D

ay R

ate

s

Managem

ent

5,5

00 $

/d

Fin

ancia

l, a

mort

ization

and p

rofit

250,0

00 –

405,0

00 $

/d

Marine c

rew

cost

38,0

00 $

/d

Drillin

g c

rew

cost

26,0

00 $

/d

Main

tenance inclu

din

g

cla

ssific

ation c

ost

21,5

00 $

/d

Cate

ring

13,5

00 $

/dCate

ring

13,5

00 $

/d

Insura

nce

10,5

00 $

/d

Total day rate

365,000 –520,000

us$/d

Hig

h R

epair C

osts

= N

eed for

hig

h r

eliability e

quip

ment

The C

hallenge F

acin

g t

he I

ndustr

y

World’s

Liq

uid

Fuels

Supply

Oil r

esourc

es

Gas to liq

uid

s

Oil s

hale

Bio

die

sel

Coal-to

-liq

uid

s

Cellulo

sic

bio

mass

New

EO

R

Tar

sands

Eth

anol

Source:

BP Statistical review; USGS, S.A. Holditch; Rand corporation

Technolo

gy a

s a

key e

nable

r

Matu

re a

reas

Arc

tic r

egio

ns

Explo

ration t

echnolo

gy

Reserv

oir m

anagem

ent

Subsea fie

ld d

evelo

pm

ent

Gas c

hain

technolo

gie

sH

eavy o

il

New

environm

ents

18

Gas c

hain

technolo

gie

s

Environm

enta

l te

chnolo

gie

s

Gre

at

depth

s

TH

E G

OM

: D

eepw

ate

rFocus A

reas

Shelf <50m

Shallow water <100m

Deepwater <1000m

Ultra Deepwaters

<3000m

AAla

min

os C

anyon

lam

inos C

anyon

Walk

er

Rid

ge

Walk

er

Rid

ge

Gre

en C

anyon

Gre

en C

anyon

Atw

ate

r Valley

Atw

ate

r Valley

Walk

er

Rid

ge A

rea

•Challenges:

–D

eep w

ate

r (1

,200 t

o 3

,000 m

ete

rs);

–D

eep w

ate

r (1

,200 t

o 3

,000 m

ete

rs);

–Loop c

urr

ents

(Eddy’s

);

–D

eep r

eserv

oirs (

8,0

00 t

o 1

0,0

00 m

ete

rs,

sub s

alt);

–H

igh p

ressure

reserv

oirs :

15,0

00 p

si to

25,0

00 p

si

(1,0

00 b

ar

to 1

7,0

00 b

ar)

;

–H

igh r

eserv

oir t

em

pera

ture

s:

up t

o 4

00°

F (

204°

C)

–H

igh r

eserv

oir t

em

pera

ture

s:

up t

o 4

00°

F (

204°

C)

–Low

perm

eability r

eserv

oirs (

dow

n t

o 5

mD

);

–Low

energ

y r

eserv

oirs (

low

GO

R).

The A

rctic –

The F

inal Fro

ntier

�Encom

passes a

n a

rea o

f som

e 2

6,0

00km

2,

and is h

om

e t

o

18 o

il &

gas b

asin

s.

�U

S g

eolo

gic

al surv

ey r

eckons it

conta

ins a

s m

uch a

s 2

5%

of

the w

orld’s

rem

ain

ing h

ydro

carb

on r

esourc

e.

�H

ow

ever, t

here

appears

to b

e less o

il a

nd m

ore

gas t

han

once t

hought.

(7

5%

to 8

5%

gas)

�Resourc

e v

olu

mes a

re e

stim

ate

d t

o t

ota

l 233 b

illion b

oe,

with a

furt

her

166 b

illion b

oe

‘yet

to f

ind’.

Arc

tic I

ssues

�“Zero Discharge” to N

O D

ischarg

e–

GovtRegulations

–Fluids M

anagement

•Long-d

ista

nce O

il

Tra

nsport

–Fluids M

anagement

�Physical Environment

–Subzero

water temperatures

–Extreme onshore conditions: cold

–Therm

al Management

–Access Issues

Tra

nsport

•Separa

tion o

f O

il,

Gas &

W

ate

r

•O

pera

tions O

ptim

ization

�Geographical Location

–Onshore m

idday night/ m

idnight sun

–Seasonal icepack threats

–People M

anagement

–Access/travel Issues

•Str

uctu

ral O

ptim

ization

•W

aste

Managem

ent

Arc

tic E

nvironm

ent

�Ic

e P

ressure

Rid

ges

�Ic

e F

loes

�Vessel Loadin

g &

Positio

n K

eepin

g

The A

rctic –

Cold

& D

eep

�W

ork

ing E

nvir

onm

ent

Subsea Power Systems

Grid

Sw

itch

Tra

nsfo

rmer

Cable

Subsea

VSD

Moto

r

Pum

p

Wet-

mate

Connection

Connecto

r

Subsea P

ow

er

Syste

ms

MECON

MECONTMTM

wet

mate

-able

connecto

r syste

m,

12-2

4-3

6 k

V/5

00A/

1500m

WD

rating

Face o

f

3-p

in p

lug

Oil a

nd G

as is n

ot

just

that

Renew

able

s &

Technolo

gy R

e-U

se

�W

ind

�Sola

r–

Photo

voltaic

–Photo

voltaic

–Sola

r Therm

al

�H

ydro

�G

eoth

erm

al Energ

y

�O

cean E

nerg

y–

Tid

al Energ

y–

Wave E

nerg

y–

Wave E

nerg

y

�H

ydro

gen a

nd F

uel cells

�Bio

mass /

Bio

Fuels

Power from offshore wave generation to shore

Wave H

ub is a

UK

Govern

ment fu

nded

pro

ject v

ia the S

outh

west R

egio

nal

Develo

pm

ent A

gency(S

WR

DA

)

Image b

y I

ndustr

ial Art

Stu

dio

Ltd

Pushin

g s

ubsea fro

ntiers

–The industr

y o

ffers

gre

at

opport

unitie

s f

or

engin

eers

Pushin

g s

ubsea fro

ntiers

–The industr

y o

ffers

gre

at

opport

unitie

s f

or

engin

eers

•Ele

ctr

onic

s•

Ele

ctr

ical

Com

munic

ations

•Ele

ctr

onic

s•

Ele

ctr

ical

Com

munic

ations

•Chem

ical

•M

ate

rials

Weld

ing

•Chem

ical

•M

ate

rials

Weld

ing

•Com

munic

ations

•Soft

ware

•M

echanic

al

•Civ

il•

Marine

•Environm

enta

l

•Com

munic

ations

•Soft

ware

•M

echanic

al

•Civ

il•

Marine

•Environm

enta

l

•W

eld

ing

•N

aval

•M

ath

em

atics

•Pro

ject

Managem

ent

•Q

HSE

•Robotics

•W

eld

ing

•N

aval

•M

ath

em

atics

•Pro

ject

Managem

ent

•Q

HSE

•Robotics

The F

utu

re for

Bristo

l G

raduate

s

�Ple

nty

of

altern

ative industr

ies a

nd o

ptions

�Very

few

will be d

esig

n e

ngin

eers

in 1

0 y

ears

�You a

re t

he futu

re m

anagers

and leaders

of

industr

y

�Fin

d a

nic

he –

it is h

ealthy f

or

your

care

ers

and f

inances

Where

to s

tart

–som

e e

xam

ple

s

�The Oil Companies

–International Oil Companies:

BP,

Shell,

Chevro

n, Tota

l, A

gip

, ExxonM

obil,

ConocoPhillips

–National Oil Companies:

Sta

toil (

Norw

ay),

Saudi Ara

mco,

–National Oil Companies:

Sta

toil (

Norw

ay),

Saudi Ara

mco,

Gazpro

m (

Russia

), P

em

ex (

Mexic

o),

Sonatr

ach

(Alg

eria),

IN

OC

(Ira

q),

Petr

oChin

a,KPC (

Kuw

ait),

Petr

obra

s (

Bra

zil),

Petr

onas

(Mala

ysia

)–

Independents

: Burlin

gto

n R

esourc

es, CN

R,

Dana P

etr

ole

um

, Encana, M

urp

hy O

il,

Nexen,

Tullow

Oil,

Talism

an,

Ventu

re,

Ente

rprise, Kerr

-McG

ee, Pare

nco, Fairfield

, Cairn E

nerg

y, Valient,

Centr

ica

�The First Tier Vendors

�The First Tier Vendors

–Cam

ero

n, Aker

Solu

tions, FM

C,

GE O

il &

Gas,

Schlu

mberg

er,

Technip

, H

allib

urt

on,

Baker

Oil T

ools

, W

eath

erf

ord

, Technip

, O

ceaneering, Subsea7

�Independent Engineering & Product Supply Companies

–Vip

er

Subsea, Tele

dyne,

Park

er

Hannifin

, Expro

, Sie

mens,

JP

Kenny, Pro

spect

FS,

Em

ers

on, ABB