CO2 Intensity of Oilfield Supply Chains

This data-file calculates the CO2 intensity of oilfield supply chains, across ten different resources, as materials are transported to drilling rigs, frac crews, production platforms and well pads.

Different resources can be ranked on this measure of supply chain CO2-intensity: such as  the Permian, the Gulf of Mexico, offshore Norway, Guyana, pre-salt Brazil and Middle East onshore production (chart above).

Underlying the calculations are modeling assumptions, for both onshore and offshore operations, each based on c15 input variables. You can change the inputs to run your own scenarios, or test the most effective ways to lower supply-chain CO2.

CO2 Intensity of Drilling Oil Wells?

This data-file estimates the CO2 intensity of drilling oil wells, in our usual units of kg/boe. The calculations are conducted bottom-up, based on fuel consumption at onshore, offshore and deep-water rigs; plus drilling days and typical resource volumes per well.

Drilling wells is not the largest portion of the oil industry’s total CO2 intensity. Nevertheless there is a 50x spread between the best and worst barrels, which is wider than other categories we have screened.

Prolific fields will have the lowest drilling-CO2 intensities, particularly where they are onshore (e.g., Saudi Arabia). Infill wells at mature deepwater fields may have the highest drilling-CO2.

Global Flaring Intensity by Country

This data-file tabulates global flaring intensity in 16 countries of interest: in absolute terms (bcm per year), per barrel of oil production (mcf/bbl) and as a contribution to CO2 emissions (kg/boe).

Flaring intensity has reduced by c20% in the past quarter-century, from 0.25mcf/bbl and 12.5kg of CO2/bbl in the early 1990s to 0.2mcf/bbl and 10kg/bbl in 2019. However, total flaring rose 3.5% YoY in 2019 and is now flat on 2009, accounting for c300MTpa of global CO2 emissions. This is 1/6th of total oil industry CO2.

Industry leaders, with the lowest flaring include Saudi Arabia and the US. Laggards include West Africa, North Africa, Iran/Iraq and Venezuela (which has shown the worst deterioration in the database, since the late 1990s).

LNG’s positive role in reducing flaring stands out from the data. LNG exports were 94% correlated with Nigeria’s flaring reduction since NLNG started up in 1999. Angola has also reduced flaring by 80% since 1998, with Angola LNG “starting up” in 2013. Finally, Equatorial Guinea now has 80% lower flaring than its neighbor, Gabon, since starting up EGLNG in 2007.

Inflow Control: Our Top 20 Papers from 2019

This data-file summarises twenty recent papers using inflow control devices: an exciting digital technology to optimise horizontal wells by limiting production from zones that are susceptible to flowing water or gas.

To lower global decline-rates, adoption is increasingly widespread at horizontal wells around the conventional oil industry. Described operators include Aker-BP, CNOOC, Equinor, KOC, Lukoil, Mubadala, OMV, PetroChina, Rosneft, Aramco, Schlumberger, Suncor and pure-play Tendeka.

Each paper is categorized by company, by country, specific fields (if relevant), paper-type, focus, well-type, ICD-type, our assessed “impact” and a short summary.

Our “Top 10 facts” on ICDs are also summarised in the data-file…

The World’s Great Gas Fields and Their CO2

The CO2 content of gas fields is going to matter increasingly, for future gas development decisions: CO2 must be lowered to 50ppm before gas can be liquefied, adding cost. Moreover, it is no longer acceptable to vent the separated CO2 into the atmosphere.

Large, low-CO2 resources like the Permian, Marcellus and Mozambique are well-positioned to dominate future LNG growth.

This data-file tabulates 30 major gas resources around the world, their volumes, their CO2 content and how the CO2 is handled.

Oil demand for chemicals, by product, by region

This data-file breaks down the world’s use of oil to make chemicals (i.e., plastics). It’s split across 13 different products, and the ‘Top 10’ countries/regions. The estimate year is 2016.

Copyright: Thunder Said Energy, 2022.