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   CSIRO  |  SOLVE  | Issue 3 - May 05  
ARTICLE
OCEAN WEALTH:
Leaving the Platform
By GAVIN BROMILOW

A MAJOR R&D PUSH IS BEING LAUNCHED TO HELP PRODUCERS REACH DEEP-SEA GAS RESERVES.

diver under platformRising fuel prices and predictions a barrel of oil could reach US$100 in the not-so-distant future bring to mind futuristic scenes like those portrayed in the apocalyptic Mad Max films, where a private petrol supply gave a tribal community absolute power.

While this fictional portrayal took fuel scarcity to its extremes, there remains an element of urgency in the work of researchers who are exploring ways to more cheaply and efficiently exploit petroleum resources - especially those beyond reach of current extraction technology.

The objective of a Perth-based research project involving CSIRO's Wealth from Oceans Flagship and scientists from the Petroleum Resources Division is to develop technologies that will significantly increase recovery, and cut running costs and capital investment in the development and operation of offshore gas fields.

Craig Roy, Director of the Flagship, says the aim is to deliver the technologies that will enable Australia to access around $1 trillion worth of gas. "This will require a change of paradigm for the design of wells and processing by eliminating conventional production platforms," he says.

Industry partners including the international oil and gas giant ChevronTexaco are showing keen interest in the project.

Specifically, the project is investigating ways to dispense with traditional platforms, a move that would open up exploration and resource development in water too deep for conventional technologies.

Project leader Dr Mayela Rivero says that large oil and gas production companies estimate that by doing away with the traditional platform they can save up to 75 per cent of initial capital investment costs. Further significant savings would also accrue from reduced staffing and running costs over the life of a field. Traditional production platforms can cost up to $1 billion to construct and Australia has had about 70 platforms set in place over the past 35 years.

Called Platform Free Fields, the project seeks to eliminate production platforms and replace them with compact technology that is installed on the sea bed and inside wells.

Dr Edson Makagawa and Dr Mayela Rivero
Dr Edson Makagawa and Dr Mayela Rivero:
Confident of attracting substantial
National and Global investment
The chief of CSIRO Petroleum Resources, Dr Beverley Ronalds, says the research initiative coincides with the world's entry into what has already been dubbed 'the methane economy'.

"Worldwide gas demand is poised for rapid growth and Australia has significant deepwater gas resources, but it is not accessible with present technology," she says. "It is estimated that in Australia there are up to 40 billion boe (barrels of oil equivalent) worth in the order of $1 trillion.

"At the moment, Western Australia, the major gas producer in the nation, has an annual production worth over $5 billion. So Australia should take a lead in developing these new technologies, because we can look forward to a much more extensive gas production future than any other OECD country."

Dr Ronalds predicts the successful innovation and implementation of subsurface processing will revolutionise the gas industry, accelerate development opportunities and may ultimately reduce the price of these resources to consumers.

She points out that in many countries gas is increasingly replacing coal in electricity generation due to its lower carbon dioxide emissions. And it is already becoming a substitute for oil in transport fuels, through gas-to-liquid and gas-to-hydrogen technologies. The move to gas is also being accentuated by uncertainties in oil production and reserves. To this will clearly be added oil's escalating price.

Industry growth scenarios show gas production overtaking oil by 2025. In some countries, including Australia and the UK, oil production peaked some years ago and gas production is already matching oil.

Dr Ronalds says a key aspect of future development and production scenarios in Australia is that while there are 10 gas production platforms operating here (and several thousand worldwide), none of them is working in water more than 300 metres deep.

Australia has considerable gas resources in water that is deeper, but new subsea technology is needed to cost-effectively develop such fields.

Dr Rivero says the research focus is on finding ways to bring distant offshore gas into production by increasing well productivity and reducing capital and operational costs.

She also adds that elements of the technological advances that will come from this project should be applicable to aspects of onshore oil and gas production.

"During the development of this project we expect to engender many advances in equipment, software, processes and chemical products that should help to improve production and reduce production costs," she says.

Her colleague, Dr Edson Nakagawa, Drilling and Production group leader, says that although the bulk of the early work is being done by CSIRO staff in different divisions around Australia, project partnerships and commercialisation areas will be developed within Australia and overseas.

"We are confident of attracting substantial national and global investment," Dr Nakagawa says. "In this early phase, we are already working with WAERA - the Western Australia Energy and Research Alliance of CSIRO, Curtin University and the University of Western Australia."

Paul Bryan, who has recently been appointed by ChevronTexaco to manage the company's strategic research alliance with WAERA, says the company is involved because it shares Australia's interest in realising the potential of the vast natural gas resources that exist.

"Achieving this will require innovative approaches and new technologies, as well as strong partnerships between the private and public sectors," says Mr Bryan. "This project offers this by bringing together the technical capability of CSIRO with industry's hands-on experience."

Dr Rivero says the first area where the researchers are seeking industry partnerships is compact water-gas separation, and commercialisation of several newly developed applications.

Wider benefits are expected to include reduced environmental impact from gas production and safer workplaces, as offshore platforms are replaced by unmanned systems.

"This project has the potential to position Australia as a world leader in cost-effective and environmentally secure gas and oil extraction," Mr Roy says.

Scientists are already working on the concept of remote monitoring systems contained within subsea or down-hole units that would immediately alert operators to any malfunction that posed an environmental threat.

"The project will require access to world's best research and development and significant industry involvement," says Mr Roy.

"It is an enterprising initiative with substantial challenges, and success would lead to a big pay-off for Australia."

 

For further information contact:
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Last Updated: May 5, 2005
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