OPERATIONAL DECISIONS IN OIL & GAS SECTOR

Measuring and Enhancing Outcomes Of Operational Decisions in Oil & Gas Sector in Abu Dhabi

Measuring and enhancing outcomes of operational decisions in Oil & Gas sector in Abu Dhabi

Introduction

The main value proposition of production automation traditionally has been the ability to monitor artificial lift, separation, compression and other well site processes to streamline efficiencies and avoid unnecessary downtime. That is changing, however, with advances in hardware and software. The value-adding drivers behind automation are evolving rapidly from keeping individual wells and equipment on line to optimizing the operation of entire fields and maximizing the performance of the reservoir over its complete life cycle (Alexeev, 2009).

Optimizing even a relatively simple form of artificial lift such as plunger lift can be difficult. Installing plunger lift is usually the first solution for gas wells that are beginning to make water to prevent gas flow from being choked off. Removing water lowers bottom-hole pressure and increases production and reserves recovery. But every time the plunger cycles, it essentially shuts the well in and stops production. If the time between plunger cycles can be doubled from, say, six to 12 hours, it can make a material impact on well economics.

Gulf Arab states have entered a new era in their economy and energy sector with the implementation of mega gas projects. The quick influx of funds has launched the largest construction activity in history and at the same time exploration and development programmes are undergoing in the crude oil sector (Andersson, 1998). The six GCC states now control more than 45 per cent of the world's recoverable oil wealth and produce nearly a fifth of the global crude supplies.

Gulf States have been dubbed as the world's oil basin. Massive LNG projects are being carried out with companies as Qatargas and Rasgas of Qatar, Adgas and Gasco of the UAE and OmanLNG are spearheading the drive to become the world's main LNG exporters.

The companies are aided by the massive gas reserves in the region, the relatively low costs of production in some members, growing international confidence in their economies, the rapid growth in global gas requirements at the expense of other energy sources, and partnership agreements with giant world oil firms. The partnership agreements are of significance as their presence allows regional states to acquire technology, secure markets, compete with other suppliers and ensure funding from key international financial institutions (Andersson, 2010).

The projects have already started paying dividends in economic and financial terms and this has tempted those companies to push ahead with mega projects and expand existing ventures. With investment in Oil & Gas infrastructure growing exponentially all across the GCC region, investors are increasingly on the look-out for technologies and services that provide the optimum combination of high return on investment and competitive edge in a dynamic global market-place.

Funds in excess of US$ 1 billion have been dispensed on reviving the oil sector in Iraq. The potential of the Iraq industry and the scale of projects ...