Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

New FPSO to Nigeria, long term planning in the oil industry

General discussions of the systemic, societal and civilisational effects of depletion.

New FPSO to Nigeria, long term planning in the oil industry

Unread postby rockdoc123 » Mon 06 Nov 2017, 11:57:21

http://gcaptain.com/worlds-largest-fpso-departs-samsung-heavy-industries/

This article is a good one which illustrates how companies must make plans long term in the industry and try to wade through the periods of both low and high prices. Total made their offshore Nigeria discovery at Egina in 2003 and made the decision to commercialize in 2009 and FEED was completed in 2010. Construction of the FPSO mentioned in this article began in 2013 and has just recently been commissioned. It is a decent size ultra-deep water oil field which just makes the Halbouty classification of Giant field at 550 MMB of light oil. Maximum production from the field through the FPSO will be 200,000 bopd. There are many fields of this nature (offshore West Africa, Brazil etc) that currently sit in the realm of Yet to be Developed and delays in commercialization and eventual commissioning contribute to the complexity of the Peak Oil roller coaster and the difficulty in assessing future global production capacity.

About a decade ago I posted on the projections made by IHS Energy with respect to future production. They take into account all fields producing or discovered and incorporate the plans that various companies have to bring new discoveries online and those timelines are the basis of the projections. But since that time we have had a global recession, spiking higher prices and a prolonged period of low prices meaning that delays in those timelines have occurred and the projections forward for world production altered accordingly. I no longer have access to IHS information but it would be interesting to see what their view is now.
User avatar
rockdoc123
Expert
Expert
 
Posts: 5512
Joined: Mon 16 May 2005, 02:00:00

Re: New FPSO to Nigeria, long term planning in the oil indus

Unread postby Subjectivist » Thu 09 Nov 2017, 13:28:57

Is it true that deep water oil is lacking investment because the Fracking end of the indstry is soaking up so much of the available cash?
II Chronicles 7:14 if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
User avatar
Subjectivist
Fusion
Fusion
 
Posts: 4122
Joined: Sat 28 Aug 2010, 06:38:26
Location: Northwest Ohio

Re: New FPSO to Nigeria, long term planning in the oil indus

Unread postby rockdoc123 » Thu 09 Nov 2017, 16:56:10

Is it true that deep water oil is lacking investment because the Fracking end of the indstry is soaking up so much of the available cash?


I think the answer is "yes to some extent with provisions". If you are a large company and publicly traded you need to show quarterly achievements which is best done with projects that have quick turn around time. Shale has one of the quickest turn around times out there, basically the well can be tied in immediately after the frack and put on production in very short order whereas offshore there is a whole bunch of work that needs to be done. Also companies will try to move their budget capex around to where they see the best returns and at this price level it favors shales. That being said some big companies have longer term commitments that really don't make economic sense to shelve for any length of time if you believe in supply/demand fundamentals driving prices. But you can certainly get more bang for your buck offshore in deep water if successful, reserves are bigger and IP rates higher. But the big companies who have onshore acreage are also driven by drilling commitments that they have made with landholders.
User avatar
rockdoc123
Expert
Expert
 
Posts: 5512
Joined: Mon 16 May 2005, 02:00:00

Re: New FPSO to Nigeria, long term planning in the oil indus

Unread postby coffeeguyzz » Thu 09 Nov 2017, 17:31:55

Doc
Although the shift towards more floaters is being considered for oil development, the so called FSRUs (regassifiers) is starting to have an impact on LNG adoption and spread throughout smaller, more remote markets.
Taking older units and refurbbing them with the newer tanks that can combine repressurization as well as chilling cuts the capex way down.
The semi mobility of these floaters is synergistically combining with the latest micro grid hardware (now called Combined Heating and Power - CHP) encouraging build out considerations that heretofore made no economic sense.
coffeeguyzz
Tar Sands
Tar Sands
 
Posts: 171
Joined: Mon 27 Oct 2014, 15:09:47


Return to Peak Oil Discussion

Who is online

Users browsing this forum: No registered users and 16 guests