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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.
Research on faults and fluid flow led by the University of Leeds has dramatically increased the ability of the petroleum industry to predict the impact of faults on fluid flow in petroleum reservoirs. The work has allowed the industry to reduce the risks associated with the exploration of fault- bounded reservoirs, and to identify areas of un-drained reserves in producing reservoirs. The research has won a series of important industrial and academic awards, and has provided a platform for the growth of Rock Deformation Research, a successful consultancy spin-out company whose turnover rose from £1.93 million in the period 2008-2010 to £4.0 million today.
ERPE research led to the following impacts in the REF2014 period:
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.
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.
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.
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.
Since Prof Blunt's appointment as a Professor of Petroleum Engineering at Imperial College in 1999, his Consortium on Pore-Scale Modelling has developed numerical tools to analyse the pore spaces of reservoir rocks, predict multiphase flow properties and determine field-scale impacts on oil recovery. This technology is now exploited by at least two start-up service companies with annual revenue of around $20 million, and is widely employed by major oil companies, leading to better reservoir management and improved oil and gas recovery. Statements submitted from just one company (Kuwait Oil Company, KOC) suggest a benefit of $100 million from efficiency savings and improved recovery in a just single field.
Durham research on hydraulic fracturing was an important part of the UK government's reasoning for lifting the ban on hydraulic fracturing to recover gas and oil from shale, which has an estimated commercial value in the UK of £1500 billion. We demonstrated that hydraulic fractures will not be tall enough to cause contamination of water supplies where there is a sufficient vertical separation (> 600 m) between the shale reservoir and the drinking water aquifer. Durham research has also provided critical data needed by national environment agencies setting regulations, oil and gas companies seeking permission from regulators to drill wells and for local communities that are objecting to hydraulic fracturing.
UCL's Deep-Water Research Group (DWRG) creates knowledge transfer between research and the hydrocarbon industry. Oil companies use the DWRG's research results to generate improved in-house computer-generated hydrocarbon reservoir models, allowing them to manage, develop and value their reservoirs better. The same companies also use the research to run training courses for employees, including reservoir engineers and managers, leading to improved understanding and more informed decision-making about the management of hydrocarbon reservoirs. Improved management and development of reservoirs ultimately leads to oil companies being able to extract a greater amount of oil.