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This case study describes the economic impact to sections of the hydrocarbons industry resulting from research into deep water sediment transport and depositional processes. turbidites.org is a multi-institutional, interdisciplinary research platform based at University of Aberdeen, which takes a multi-scale approach to understanding deep-water depositional systems and their significance as a stratigraphic record of long-term environmental change. The resulting research outputs have been applied to deep-water hydrocarbon reservoir prediction.
Researchers in petroleum geology at the University of Aberdeen have since the mid 1990's been investigating the characteristics and geological context of sand injectites. The geological contexts within which injected sands are discovered have permitted a step change in the production potential in some oil fields (up to c. 1 billion barrels oil), and to define new exploration targets (up to 250 million barrels oil) to make a significant increase to the overall proven reserves of hydrocarbons in any given province (e.g. the North Sea). The findings of this research have been utilised by a number of multinational oil & gas companies to optimise their exploration and field development strategies to maximise the commercial production of hydrocarbons. This case study describes the economic impacts resulting from two projects in particular in the North Sea, the Volund field (Marathon Oil) and the Mariner Field (Statoil) resulting in the enhancement of strategy, operations and management practices; improvements in performance and adoption of new processes; and creation of new employment as a direct result of research facilitating the development of new assets that would otherwise have remained fallow.
University of Leeds Research has been used by its specialist Turbidites Research Group (TRG) to underpin consultancy work for oil companies that has, in turn, steered them to make high-value decisions. Examples include an oil well placement, the development of an oil field, and a decision to only partially develop another. The TRG has been funded by 14 oil companies since 1992, and its annual income has risen from £125k/yr prior to 2008 to £380k/yr during the REF period. It is estimated that the cumulative value of oil company decisions based on TRG research exceeds several hundred million dollars. Following the impact, Leeds have replicated the TRG business model to form new specialist industrial research groups that have each generated further impact.
Research by the University of Aberdeen's research group on Stratigraphic Evolution of large Igneous Provinces (StratLIP) has guided the successful development of new oil-producing fields in the North East Atlantic that were previously not in production, aided by an improved understanding of the geological context within which the reserves were discovered. The research has informed every phase of exploration and development by several of the UK's leading energy companies, in one project saving the partners £600m and proving the financial viability of a major oilfield development deemed important to the UK's oil supply. The findings have contributed to an increase in the UK's energy security and the strength of the UK's oil and gas industry, especially in the context of the local economy of Aberdeen, the energy capital of Europe.
Failure to predict and control geological overpressures during drilling can lead to operational delays costing millions of pounds, or to blow-outs causing serious environmental damage and costs running into billions. Using methodologies, knowledge and data analysis techniques developed at Durham, a spin-out, GeoPressure Technology (GPT; now Ikon Geopressure) (20 employees, revenues 2008-13: £10.8 million) has become a niche supplier to the global oil industry of expertise, training and software ("PressureView") that predicts and assess the causes of overpressure. GPT consultancy has had particular impacts for companies drilling in the North Sea, offshore Canada, Norway and West Africa where overpressure represents a significant technical challenge.
Bristol researchers have been working with the oil and gas industry to develop new methods for monitoring and modelling deformation in oil and gas reservoirs. Industry and NERC funded research has led to the development of (i) novel techniques that better utilise microseismicity monitoring of petroleum reservoirs, and (ii) new software which couples geomechanical deformation and fluid flow with geophysical observations. The research has led directly to development and improvement of commercial software to enhance exploration efforts and minimise costs. Bristol software is now used by several multinational companies worldwide and its development has led to a successful start-up company.
Our research has had a global impact on understanding the tectonic development and fill of rift basins, providing a predictable spatial and temporal template for the distribution of hydrocarbon reservoir rocks. The models are embedded in exploration workflows of global oil companies and have influenced recent exploration success (North and East Africa, Atlantic conjugate margins). Translational research on 3-D rift basin outcrop data capture and resulting software licencing has improved reservoir modelling, optimising positioning of $100m wells. Field-based training for several hundred oil industry staff since 2005 has ensured in-depth knowledge transfer.
Impact: Economic benefits arising from new exploitations of North Sea oil and gas fields (2008 - June 2013), including oil production at the Bentley field by Xcite Energy Ltd and gas production at the Wissey field by Tullow Oil plc.
Significance and reach: The Bentley field produced 47,000 barrels of oil (value ~$4.7M) over the period 2011 — 2012, with an estimated ~900M barrels in place. [text removed for publication].
Underpinned by: Research into the identification of geological features through seismic and sequence stratigraphy, undertaken at the University of Edinburgh (1993 - June 2013).
Newcastle University research on biodegraded petroleum systems has had a number of broad reaching impacts on the oil industry (ExxonMobil, Statoil, Woodside, and Shell), related companies (Permedia) and regulators (Alberta Energy Regulator). A new approach to oil viscosity determination was developed, which directs well-placement in biodegraded oilfields to lower viscosity areas, resulting in improved production of heavy oil. Software tools developed to model oil composition have been incorporated into proprietary in-house, oil company reservoir simulations. A spin-out company was founded, Gushor Inc., which provides services to the heavy oil sector and was recently acquired by Schlumberger. Collectively the research from Newcastle University has saved oil companies hundreds of millions of pounds by avoiding poorly producing viscous zones in biodegraded reservoirs.
Resistivity anomalies resulting from hydrocarbon reservoirs can be located and measured using controlled source electromagnetic (CSEM) techniques. The University of Southampton played a pivotal role in the first full-scale marine CSEM survey over a hydrocarbon target in late 2000. This survey and subsequent work spawned one of the greatest technological advances in the field of oil exploration since the development of 3D seismic techniques. By the end of 2012 over 650 commercial CSEM surveys had been completed worldwide, with annual survey revenues in excess of US$200 million. The University continues to develop impact through consultancy and industry-funded research projects.