Student Team Topics

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

Student Team Topics

1. Energy and the Environment

Energy use and supply is of fundamental importance to society and, with the possible exception of agriculture, has made the greatest impact on the environment of any human activity - a result of the large scale and pervasive nature of energy related activities. Although energy and environment concerns were originally local in character - for example, problems associated with extraction, transport or noxious emissions - they have now widened to cover regional and global issues such as climate change, loss of biodiversity and ozone layer depletion. Such problems cannot be addressed by countries acting alone and have become the subject of international debate and regulation

Global demand for energy is growing remarkably, driven by the increase on population and economic growth. This increase has allowed the world economy to expand, raising living standards and helping to meet the aspirations of millions of people around the world. The poor are disproportionately affected by environmental degradation and lack of access to clean, affordable energy services. Over the coming decades, energy demand will grow significantly, requiring large investment in energy and improvement of energy efficiency. That program or plan will focus specifically on managing the risks associated with green house gas (GHG) mitigation and changes in climate.

Energy can be saved by using it more efficiently or by using it less. Energy efficiency depends on the input (fossil, coal, etc.) and the output (light, heat, mobility etc.) improving energy efficiency, by reducing quantity of energy consumed, can improve energy security and mitigate the environmental harm caused by production, transportation, energy consumption. It can also bring broader economic and social benefits, by lowering costs to business and households, increasing the competitiveness of the economy and creating jobs in supplying energy-efficient technologies and practices (energy services).

QUESTIONS:

1.What are the main issues affecting the successful co-habitation of energy and environment?

2.How the poor are disproportionately affected?

3.Which social, political and economic groups have made headway in efforts to balance the existence of energy generation and environmental protection?

4.Does environmental extremism work to bring attention to these issues? Research recent stories of extremist groups generating publicity and compare it to the truth.

5.Often times, energy companies get a bad reputation for polluting the air, water and soil - what measures do large organizations put in place to prevent contamination and/or pollution?

6.What technologies are on the horizon that will positively affect the oil and gas industry from negative environmental incidents?

7.Can “green” alternative energy sources replace our dependence on oil?

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

2. Project Management

As the complexity of finding and developing oil and gas resources increases, the size and scope of the projects to implement these developments also become more complex. In a time when financial resources may be limited and the cost of development is increasing, many companies must ensure that every bit of capital is spent in the most efficient manner. Likewise, they may use structured systems to manage the projects and ensure successful project delivery.

Your task is to identify the key elements of project management to deliver on project objectives and demonstrate how efficient use of capital plays into managing projects.

Some key questions to consider:

How are project objectives defined?

What is the measure of “success”?

How is progress measured?

How should a project be defined in terms of scope, time, completion?

What human resources may be required to manage and deliver a project? o What skill sets and training are important?

o What is the structure of a project management organization? o How can external resources (e.g., contractors) be leveraged?

What are the project milestones that should be achieved?

What are the most important aspects of project delivery? Schedule? Cost? Other? Do any of these weigh more heavily on the project and how should that be balanced?

What is the role of project reappraisal? Is it important?

What is the relevance of peer reviews or “cold eyes” evaluations?

How should the role of project management teams change with the type of project?

3.Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity) is a concept whereby organizations consider the interest of the society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment.

Many corporations have developed policies, processes and procedures to address how to best represent their interest in the community they operate while developing a positive image through aggressive Public Relations campaigns. This is especially important for the Oil and Gas industry for a number of reasons. Typically, companies tackle one or more of the following CSR areas:

a.	Health and safety	b.	Environmental protection
c.	Human rights	d.	Human resource management
e.	Corporate governance	f.	Community development
g.	Consumer protection	h.	Labor protection
i.	Supplier relations	j.	Business ethics

k.Stakeholder rights

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

Your task is to develop a better understanding of the concept of CSR and link it back to the Oil and Gas industry. Use the following questions as a guide:

1)Why is CSR important and how does it affect the Oil & Gas industry today?

2)How will CSR impact the way the Oil & Gas Industry operate in the future?

3)How do companies benefit of the CSR program?

4)Give three or more examples of CSR activities undertaken by any of the Sponsoring Companies (check the IPTC website for a full list).

5)How do these companies measure the effectiveness of their CSR programs?

6)What challenges/opportunities does the industry face when supporting CSR activities in locations that do not adopt or appreciate such practices?

7)In what way do you see yourself playing a role in the future CSR activities?

8)What is your opinion on the CSR activities that you have researched? Is this a good use of company/shareholder money?

4. World Economy Crisis Effect on the Energy Business

The world has undergone an Economic Crisis starting in the second half of 2008. This crisis has affected the Energy Business and especially the Oil and Gas Industry where suppressed demand has caused oil prices to drop drastically. Companies and their projects have had to adjust outlooks due to this dramatic market shift. What are the most important issues for companies’ to consider as they proceed with oil and gas development in the next decade?

1)Consider a historical look at previous World Economic Crises and their effect on the Energy Business:

a.What were the outcomes of such crises (how did it change the energy business then and today)?

b.Did the effect of these past crises last, and did it sustain the test of time?

c.Had it affected the way the industry deals with the Environment?

2)How did the present market condition affect the Energy Business:

a.How did/will the current economic crisis affect the Energy Industry?

b.How do you suggest the Energy Industry overcome this situation?

c.Do you believe Technology can hinder or help the Energy Industry overcome this downturn? How?

d.How will the Environment be effected by this downturn?

3)Explore the possibilities of what the industry will do to minimize or eliminate the effect of any future World Economy Crisis on the Energy Business:

a.Can the energy industry be independent of the Economy, why or why not?

b.If not, how can we minimize this dependence and allow the Energy sector to flourish at all times?

c.Any long term solutions?

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

5. Oil versus Gas

Oil and gas are commonly found and produced together, yet, due to market and transportation factors, are often valued differently. In the past gas has been under-valued relative to oil, making it a by-product and in some cases, a wasted resource. Recent technologic advances and a demand for cleaner energy sources have increased the value of gas reserves. For this problem, please report on the relative value of oil versus gas reserves, both in the past and present, and consider how that plus future demand will impact the outlook for markets and supply in the future.

1)Consider historical value of oil and gas reserves and present a summary of market and political impacts. Include:

a.Energy per unit volume

b.Transportation costs and evolution

2)Summarize present market conditions for oil versus gas. Consider:

a.LNG and GTL technologies

b.Environmental concerns

c.Transportation options today

d.Technology advances and impact on gas vs. oil valuation

3)Predict future trends in oil versus gas supply and demand. Discuss implications for:

a.Global economics

b.Political impacts

c.Environmental implications

d.Unconventional resources

i.Tight reservoirs

ii.Hydrates

iii.Coal and shale gas

6. Alternative Energy Sources: Viability and Impact

As populations increase and economies expand, the demand for energy to power our homes, businesses and industries, and to fuel our transportation needs increases. Even with significant improvements in energy efficiency, the world’s total energy demand is expected to be approximately 40 percent higher by 2030 than it was in 2005. The vast majority of this increase will take place in developing countries, where economies are growing most rapidly and modern energy supplies are still a precious commodity for millions of people. Meeting higher energy requirements poses many challenges, including boosting efficiency, developing new supplies and managing environmental risks.

Oil and gas will likely be essential to meeting the Energy demand for the next several decades, but no single energy source can satisfy the world’s growing needs. To meet growing demand, while addressing the risks posed by rising greenhouse gas emissions, a broad mix of non-hydrocarbon energy sources will be needed including renewable and alternate energy sources. For example:

Hydro:

In widespread use today, hydropower generates about 15% of total electricity. Hydropower has the advantage of being renewable, but is limited by availability of suitable sites.

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

Wind:

Though growing rapidly, wind power currently generates only about 0.6% of electricity worldwide. In certain limited applications, wind power can compete economically today, but most projects rely on government subsidies. The principal challenges to making greater use of wind power include economics, availability of good sites, public opposition, and intermittency requiring backup capabilities.

Solar:

With today’s technology, solar power is much more costly than wind power. Like wind, it poses challenges of intermittency and the related costs of energy storage or backup supplies.

Biofuels:

These include ethanol produced from a variety of agricultural feedstocks. Unlike other forms of renewable energy, these are liquid fuels that can complement oil as a transportation fuel. For example, production of ethanol from sugar cane in Brazil is competitive today. Research is focused on achieving technology breakthroughs to lower cost.

One issue associated with ethanol is that its energy (BTU) content is significantly lower than that of gasoline. This translates to lower fuel economy. Furthermore, given land constraints and competing uses for corn (e.g., food), the potential impact as an energy source is limited. Currently about 20% of the U.S. corn crop is used for ethanol, supplying only about 2.5% of U.S. gasoline demand (on an energy equivalent basis).

Other energy sources include nuclear, coal, geothermal, tidal and hydrogen.

Assignment:

1.List and briefly describe all alternative (non oil & gas) energy sources

2.Which of these energy sources are in use today, and what percentage of total energy demand do they fill?

3.What are the challenges and consequences associated with the utilization of each?

a.Environmental impacts

b.Technical feasibility

c.Infrastructures required to deliver energy produces

4.What are the costs of supply and economics associated with each, and how do they compare to the economics and cost of supply for conventional and non-conventional oil and gas?

5.What portion of future energy demand will be filled by these alternates in the future and why?

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

7. Technology Watch / Knowledge Sharing in a Competitive World

From “Good to Great.” How can we stay ahead in a competitive world? (Suggested reading: “From Good to Great”)

The Energy industry in internally competitive in nature, but most importantly competitive with other high tech industries, not only in acquiring the best talent available, but by also competing for the development of cutting edge technology that is not only used in within its industry, but spans to other industries (e.g. automotive).

1)Describe today’s Competitive world. Elaborate on of the following aspects:

a.Oil producing companies are competing among themselves in technology and labor market

b.Better and cheaper ways of energy production

c.What makes Oil & Gas professionals “good” and what makes them “great”?

2)Describe some of the new Technologies that would affect the future of the Oil & Gas Industry.

a.The definition of “New technologies” is technologies that are released in 2009 or due to be released in the next three years.

b.Focus on Technology like Software, Hardware, Collaboration, Operation centers

c.Focus on technology used in Drilling, Completion and Production

3)Some of the key elements that differentiate professionals from “Good to Great” is knowledge sharing.

Define Knowledge Sharing and the how best to use the following methods already in place:

a.	Publication	b.	Forums
c.	Conferences	d.	Websites
e.	Community of Practice	f.	Peer Reviews
g.	Expert Advice	h.	Etc.

4)Future outlook for knowledge sharing: Provide some ideas how can we enhance further the knowledge sharing in Oil & Gas Companies

a.Paper less publication/ Environmental concerns

b.Remote conferences

c.Automatic data gathering and publishing, etc.

2012 SPE YOUNG MEMBERS ACTIVITIES Held in Conjunction with ADIPEC

8. Unconventional Natural Gas

Conventional natural gas has been used for over 150 years, mostly as a fuel. It gained importance only recently as an energy alternative source. In the past, several reasons hindered the practicality of utilizing gas produce with oil. For example, gas required special storage and expensive infrastructure for transportation. Natural gas became more important in the last 30 years as it provides about 25% of the energy need of the world.

Natural gas consumption is expected to increase by 1.8% every year from 2007 to 2020 and by 0.9% from 2020 to 2035 (due to the increased price of scarce resources). Industrial sector is predicted to use 40% of the natural gas from 2007 through 2035. The most natural gas demand is for power generation (33% in 2007 and 36% in 2035). (Source: US Energy Information Administration, International Energy Outlook 2010). As the result of the fastest growth, unconventional resources of natural gas became an important topic over the past decade.

Unconventional resources has been classified based on the geological characteristics includes tight gas sands, gas shale, coal bed methane, and gas hudrates. As an example, gas in tight sands typically have a porosities of 5-15%, immobile water saturations of 50-70%, and gas permeabilities of 0.001 to 1 md. (e.g., Rocky Mountains, Utah, New Mexico, Colorado, Wyoming). On the other hand, Gas in tight shales typically have a porosity of 12% and permeability in the range of nano-Darcy. Production is by natural fractures, bedding planes, and joints (e.g., Kentucky, West Virginia, Virginia, Ohio).

Finally, the perception and definition of unconventional vs. conventional varies by time, location, and discipline. Early definitions for unconventional reservoir stated as “… the reservoirs that cannot be produced at economic flow rates … without assistance from massive stimulation treatments or special recovery processes and technologies, …” Holditch, 2001. However, with the market-based rate regulation and the passage of National Gas Policy Act, exploration and production of unconventional natural gas bloomed. These systems are now economically viable resources (Law and Curtis, 2001).

Questions:

1.How unconventional resources are defined?

2.Why understanding geological and petrophysical characteristics are essential aspect in developing unconventional resources?

3.What challenges/opportunities does the industry face when developing unconventional resources?

4.Can unconventional resources replace our dependence on oil, is it a threat to major oil companies?

5.How will unconventional resources impact the way the Oil & Gas Industry operate in the future?

6.Predict future trends in Oil verses unconventional resources supply and demand, and elaborate on the implications on global economy.

7.What technologies are on the horizon that will positively affect the unconventional resources evolution?