Monday, December 25, 2006

MDA Information Products - Geospatial Services

MDA Information Products - Geospatial Services


Drilling Deep for Energy


Author:
By Mary Jo Wagner, freelance writer, Vancouver, B.C., Canada.
Courtesy:
Earth Imaging Journal
 

Searching for Oil from Space
An interpreted RADARSAT-1 SAR image illustrates a variety of water conditions off the coast of Nigeria. SAR is sensitive to changes in surface texture and gives different return signal information for different surfaces. Because oil dampens capillary waves, oil-covered surfaces are smoother than surrounding water and reflect the radar signal away from the satellite. Oil seeps are characterized by distinct areas of darkness on a radar image. By examining the shape and size of the dark regions on an image, in conjunction with ancillary data, an image interpreter can discriminate between pollution, phytoplankton, wind shadow, grease, ice or oil seep.

Oil and gas exploration is inherently risky, and offshore oil exploration is an especially huge gamble. According to a joint study by energy consultants Wood MacKenzie and Fugro Robertson, two-thirds of all oil-and-gas reserves discovered globally in 2002-2003 were in water 1,200 feet or deeper. In the Gulf of Mexico, Unocal's Trident well took 66 days to drill at a cost of $34 million, and the company's St. Malo well had to be drilled nearly 36,000 feet deep—almost seven miles—before striking oil. Seeking every possible competitive edge, oil companies are turning to radar satellite imagery to improve deepwater exploration success.

The SAR Advantage
Combining synthetic aperture radar (SAR) imagery with other data such as satellite-derived gravity and bathymetry enables companies to clearly detect and map natural oil seeps on the sea surface and correlate them to sub-surface structures. It's a method that has proved effective in Angola, Nigeria, Brazil and the Gulf of Mexico.

So well documented is the use of SAR imagery as a long-range reconnaissance guide to indicate seep activity that most oil companies now routinely study data from Canada's RADARSAT-1 satellite, as well as the European Space Agency's Envisat and ERS satellites, to help detect seepage.

That reliance isn't likely to diminish in the current environment of increasing demand and pressures to meet unabating demand with tight supply conditions and a substantial number of aging global fields in the Middle East. Adding to this deepwater race are the prospects of devising solid bid strategies for new frontiers coming online in offshore Mexico, West Africa, Venezuela, Vietnam, Libya and India. The high price of oil also makes smaller and more obscure fields more economically attractive.

"SAR imagery is a key part of the new venture exploration," says Alan Williams, oil and gas manager at Nigel Press Associat es Limited (NPA) in Edenbridge, England, a company specializing in satellite applications for more than 25 years. "Mapping subtle, yet clear, examples of natural hydrocarbon seepage to within a few hundred meters using radar imagery presents an important confidence builder to petroleum companies in deciding to commit exploration expenditure in an area where doubts previously existed about the presence of a working petroleum system. That data helps them to decide which license rounds they want to bid on based on perceived acreage value."

Radar's Edge
NPA has been providing oil seep detection studies to oil and gas companies such as ExxonMobil, Shell, Chevron, Total and BP since 1994 through its Offshore Basin Screening (OBS) technique. The method combines seepage detection using RADARSAT-1, ENVISAT and ERS imagery with high-resolution satellite gravity to investigate basin structure, and to map regional seep distribution patterns on the sea surface and oil migration pathways at the seabed. Williams says NPA has screened and mapped 75 percent of the world's basins to ultra deep water depths up to 10,000 feet and maintains more than 6,000 interpreted radar scenes in its Global Offshore Seeps Database (GOSD).

Petroleum companies can receive an archived GOSD digital dataset of seep-related information in 24 hours that comprises the locations and classifications of the seeps. Each has been categorized and rated by characteristics such as size, shape, slick orientation and repeatability, and interpreted with collateral data like water depth, wind speed and geographical location. Each slick is also hyperlinked to a high-resolution image in the database, enabling users to view the slick in a wider context of the whole scene. Clients can also receive a more detailed map of the basin complete with bathymetry, gravity and regional geology.

NPA has used the OBS technique worldwide to provide oil companies with natural seepage evaluations in areas such as Vietnam, Venezuela, Brazil, the Gulf of Mexico, Norway and Angola. Angola, in particular, has yielded positive results for petroleum players, as deepwater studies conducted by NPA in 1998 correctly predicted where eventual discoveries would be. "There have been a recent string of major discoveries along deepwater offshore Angola where we had previously mapped an extensive zone of intense and repeated oil seepage based on our analysis using primarily RADARSAT-1 data," says Williams. "The companies that bought those studies before they were licensed have now been very successful."

Capable of being applied in any offshore environment, Williams says the OBS provides competitive intelligence at a competitive price. "For many regions, there isn't any way petroleum companies can obtain widespread geological information with traditional methods. Using SAR imagery, we can now screen large areas for less than $0.50 per square kilometer because the satellites provide wide and continuous coverage."

The low-cost technique will offer an even better package with the launch of Canada's RADARSAT-2 satellite. Adds Williams, "RADARSAT-2's dual polarization modes could help better define oil slick composition. Also, the high 3-meter-resolution swath will be ideal for finding smaller seeps that are associated with leakage from light oil and condensate traps that are invisible to conventional SARs."

RADARSAT International
(www.rsi.ca), now doing business as MDA, Geospatial Services International, will be responsible for RADARSAT-2's operations and data distribution rights after launch in early 2006.

Global Seeps
Helping oil companies see the most important element in the exploration process—the geological structure of a basin—is the premise behind the Global Seeps (GS) Database that Infoterra has been offering to petroleum clients for 10 years. Infoterra (
www.infoterra-global.com) is a geoinformation products and services provider based in Leicester, England, and is a wholly owned subsidiary of the European space company EADS Astrium.

According to Paul Russell, Infoterra's general manager of remote sensing applications, in recent months the company has provided oil seep detection studies to clients for offshore Africa, Australasia, South America and the Arctic. The Arctic region — an exploration hotbed at present — has yielded particularly promising results, as the GS identified previously undetected oil seeps in the Barents Sea and offshore Siberia using RADARSAT-1 Wide Beam imagery (30-meter-resolution and nominal coverage of 150 kilometers x 150 kilometers) and ERS imagery.

Under the GS program, Infoterra has screened offshore basins worldwide for oil seeps with more than 10,000 ERS and RADARSAT-1 scenes. Coupling those with an array of ancillary information, Infoterra has created off-the-shelf oil seep detection products for the oil industry. In a matter of hours clients can receive full-resolution subset imagery of each identified seep from the archive. The imagery is complete with seep points, lines, individual scene outlines, and ship and rig locations, as well as full scenes at reduced resolution to obtain an impression of the seeps in an overview. In addition, all seeps found will be mapped in a regional context according to bathymetry, as well as field and well data.

"Clients are interested in exploring different areas at different times, so quickly providing off-the-shelf data gives them the opportunity to explore where they want to when they want to," says Russell..

Turning to the SEA
The turnaround time to receive a study may be quick, but the time between assessing that study and ultimately drilling sedimentary rock is not.

"It may be five years before an oil company drills an exploratory well and another year before it makes a discovery," explains Roger Mitchell, vice president of business development for Earth Satellite Corp. (EarthSat) in Rockville, Md., a company specializing in satellite marine oil seep detection applications. "Our data are used by oil companies as part of a comprehensive oil exploration program. And it can be a long time before they're ready to drill somewhere. But almost any company exploring offshore is at least going to consider, if not use, a seep program. It's involved in virtually all offshore exploration."

EarthSat
(www.earthsat.com), now doing business as MDA, Geospatial Services U.S., developed an oil seep detection technique called the Seep Enhancement Algorithm (SEA) 14 years ago. Designed to rapidly assess hydrocarbon seepage potential, SEA integrates either radar or optical imagery with gravity, bathymetry, offshore structure locations and other information to correlate natural oil seeps with their hydrocarbon sources and to map those seepage points.

Clients receive classified slick distribution maps overlaid on corresponding gravity and bathymetry models to produce detailed maps of the basin in the area of interest. This visual representation includes the basin's geological structure, the number of natural seeps present and the location of seepage points.

According to Mitchell, the SEA uses an adaptive processing algorithm that identifies seeps in varying water and temperature environments such as the cold, choppy waters of the North Sea or the warm, often polluted Mediterranean Sea. Because seeps are intermittent in nature, EarthSat typically acquires three data passes at a minimum to establish seep locations. One of the earliest exhaustive SEA studies EarthSat completed was a survey for the entire U.S. economic zone of the Gulf of Mexico, an area covering roughly 900,000 square kilometers, using several RADARSAT and ERS images. It is perhaps the most compelling evidence of just how well radar imagery can detect natural seeps. According to Mitchell, more than 450 seep anomalies were located in this region that has long been a natural hydrocarbon haven, and is still one of the most exciting exploration and development areas in the world today. Indications of seeps were identified in 15 protraction areas, eight of which had no previously recorded evidence of hydrocarbon seepage.

"We believe surveys such as these provide unique insights into the petroleum systems of offshore basins and at a very low cost," says Mitchell. "We surveyed this area, which is eight times larger than the Green Canyon region, for about 8 cents US per square kilometer." Although a radar image can't definitively tell oil companies where to drill, it does provide them with a starting point with which to plan more data sampling, and subsequently helps to lower the risk of investigating active migration seepage. And minimizing risk is what it's all about as petroleum players continue on their pioneering quests to realize the tantalizing promise offered by the world's offshore virgin basins.

An MBendi Profile: World: Oil and Gas - Overview

An MBendi Profile: World: Oil and Gas - Overview


World: Oil and Gas
 - Overview
  > World Oil
  > World Gas
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^ World Oil

Oil accounts for 40% of the world's total primary energy demand and economic conditions are governed to a large degree by its availability.

It has been estimated that the original recoverable oil in the earth was 2,330 billion barrels (Gb). A recent study of oil and gas distribution and depletion ( Peak Oil by Colin Campbell, 1999) indicates that of this amount 90% has been discovered, 50% has been produced and that at present the world consumes four barrels of its known reserves for every new barrel discovered. In terms of numbers this equates to a production of 22 Gb/year, with only 6 Gb being discovered. The current depletion rate has been calcualted at 2.2% per year. So it is apparent that the gap between consumption and discovery is widening as oil moves from a surplus to deficit status.

A previous study by the EIA indicated that given an equal distribution of reserves, static consumption and production levels, there might be 100 years of consumption left. With 65% of the world's oil reserves located in the Middle East, it is immediately apparent that global distribution of oil is not equitable and the graph below indicates that consumption and production are also widely disparate and bear little relationship to the presence of reserves.

Global Oil consumption and production

North America, Far East and Oceania and Western Europe consume 77.5% of the world's oil, produce 44.4% but actually only contain 12.5% of the world's oil reserves. For these areas, 100 years is an unrealistically long period. The Middle East, in contrast, although containing 65% of the world's oil reserves only produces about 30%, and consumes about 6% of the world's supply. The graph below provides an idea of the distribution of reserves and related production globally (information provided by Campbell 1999).

Global Distribution of Conventional Oil

*Conventional Oil excludes oil from coal or shale, Bitumen and extra heavy oil (>10°API), Heavy Oil (10 - 17.5°API), Deepwater Oil (>500m) and Polar Oil

According to current research by Campbell (1999), depletion is occurring currently at a rate of 2.2 % per annum. He states that there is already a price shock because of the world's growing dependence on the Middle East, which has difficulty increasing its production rapidly enough to meet demand. He further predicts that in approximately ten years there will be an onset of global long term shortage when the Middle East will be required to supply at least 50% of the world's oil and that it will not be able to meet this requirement.

This disparity places in the spotlight the increasing strategic significance of two global organisations, the Organization of Petroleum Exporting Countries (OPEC) and the Organisation of Economic Cooperation and Development (OECD).

OPEC Countries

OPEC was founded in 1960 to unify and coordinate the petroleum policies of the 12 major oil producing and exporting countries that comprise its membership. By setting production quotas, it has been able to manipulate the global oil price. This was noticeable in 1974 when their embargo on oil caused the price of crude oil to soar.

In contrast, OECD was instituted to counterbalance the role of OPEC and has a membership of 29 countries, all committed to market economies and pluralistic democracies. The OECD countries produce two thirds of the world's goods and services. The core of original members was located in Europe and North America but has expanded to include countries from the rest of the world including Asia, Latin America and the former Soviet bloc. In its attempt to deal with OPEC's ability to manipulate crude oil prices, the OECD has developed emergency strategies to help its member countries deal with crises such as energy supply.

^ World Gas

The utilisation of gas in the past has not been optimal. Due to economic constraints, most associated gas in the past was flared. Increasing concerns about diminishing energy reserves and environmental hazards are applying pressure on the industry to utilise a higher percentage of this gas. As a result, legislation has been introduced to control operators, and many countries are increasing their use of gas primarily for domestic consumption in order to decrease the amount of oil imported or to increase the amount of oil that can be exported. Growing utilisation has improved infrastructure and gas is becoming a primary focus for exploration in many areas.

Global Gas Consumption and Production

From the above graph it is clear that countries tend to consume what they produce with the exception of Western Europe which is one of the largest consumers, and Eastern Europe and Africa which currently produce more than they consume.

Thursday, December 14, 2006

Geology News: Fossil Plesiosaur Discovered in Antarctica

Fossil Plesiosaur Discovered in Antarctica


Photo of the discovery site on a cold, rocky, windswept slope on Vega Island, Antarctica. Photo by James Martin, used with permission.

Paleontologists from the United States and Argentina discovered one of the most complete plesiosaur skeletons ever found. (A plesiosaur is a swimming marine reptile that lived about 70 million years ago. At that time the waters of what is now Antarctica were much warmer than they are today.) The fossil plesiosaur was discovered during a 2005 expedition to Antarctica. The fossil goes on display today at the South Dakota School of Mines and Technology's Museum of Geology.

This plesiosaur specimen is a juvenile of about 5 feet (1.5 meters) in length. An adult plesiosaur is about 32 feet (10 meters). It was perfectly articulated and complete, except that the skull had been lost to erosion. The plesiosaur was excavated from deposits of shallow marine sands covered by volcanic ash. Paleontologists speculate that the volcanic blast or debris thrown into the ocean was responsible for the plesiosaur's death.


Researcher carefully excavates the fossil plesiosaur. Photo by James Martin, used with permission.


Excavation of the fossil was extremely difficult because of weather conditions. The paleontolgists had to contend with 70 mile per hour winds sweeping the excavation site, low temperatures and frozen ground. Transporting the specimen to the Herbert Sound camp would have been extremely difficult but the researchers were fortunate to get helicopter support from the Argentine air force.


Artist's impression of the plesiosaur and environment. Painting by Nicolle Rager, National Science Foundation.


James Martin (South Dakota School of Mines and Technology), Judd Case (Eastern Washington University), Marcelo Reguero (Museo de La Plata, Argentina) and J. Foster Sawyer (South Dakota Geological Survey and the School of Mines) were among the participants in the discovery.