Over 225,000 visits on the premier artificial lift forum since its inception in March 2008! Membership base is growing.
As of Dec 7th, 2012, we've reached our 2000 limit of registered Oil & gas artificial lift professionals. Active partcipants are oil & gas operators and other specialists. Topics on operating history, experience with technologies, troubleshooting, pricing, runtimes, - you can ask the question if you don't see what you're looking for and a member can offer their opinion.ESPlift.com is now the #1 online artificial lift technical service provider on the web. Intrigued? If it's about artificial lift and electric submersible pumps you're looking for, here's the place.
Students email from time to time: How did Oil and Natural Gas come to be?
Must be science report time at schools around the world whenever we get this question in the mail. So here goes ....
We tap into our vast repetoire from production engineers and geologists who are members, with special thanks to geologist Mr. David Lambert.
Most geologists believe that natural gas and oil derive from tiny marine organisms that died and sunk to the sea bed millions of years ago. Compaction changed surrounding sediments to mudstones and shales. The resultant heat and pressure produced bacterial processes that transformed the organisms into hydrocarbons - compounds mostly made up of hydrogen and carbon.
Forces on the Earth's crust drove most hydrocarbons to the rock in which they formed. They percolated up through permeable sand, sandstone, or limestone until trapped below a layer of impermeable rock.
So the impermeable rock below the trap became a fossil fuel reservior. Here, natural gas floats on a layer of sticky to runny black to yellow liquid - a complex mix of hydrocarbons that we call petroleum.
This petroleum floats on an even denser substance, - water. Wells are typically drilled through impermeable rock & gas to oil, trapped over water in four types of saturation. If you ever take a Petroleum Engineering introductory class, these four types of saturation will be one of your first subjects. Namely, 1. Oil in anticline, 2. Oil in rocks pushed up by salt dome, 3. Oil trapped by fault, and 4. Oil in filled rocks, trapped by unconformity.
There are many references in petroleum science textbooks with image examples of these four saturation types. There are also many websites with images and information too - here's a rather interesting example, click here. Preparing a book report or presentation? Good luck, and please let us know how you made out - hopefully you'll score an 'A', and maybe become interested in the oil & gas profession. One thing's for sure, we'll always find use for oil & natural gas, and lots of it!
How important is transparency in today's world? And how does utilizing global communications networks and technology like what you find on
ESPlift.com help your business? Example - Let's not forget the external disclosures about ESP equipment in the mid-1980's that led operators' push for standards - namely, the first edition of API RP11S2 ! Isn't improved transparency from the industry regarding standards, short runs and safety good? Many professionals think so. It's noted that Baker Hughes Centrilift is apparently the only company in the industry with a policy banning communication on such forums. Click here, - and see for yourself as published by the Houston Chronicle.
INCENTIVE CONTRACTS - A GOOD INVESTMENT?
This is a featured topic opened by an oil & gas operator looking to improve runlife. What is your experience / pros and cons / with incentive contracts? There are some who tout the benefits outweigh the expense and commitment issues. Others are skeptical, and believe it's just another way for vendors to get in your pockets.
We've recently launched telephone and email referral and applications support, provided by retired ESP and artificial lift engineer professionals.
You may contact us by phone, or globally via live Skype. Team conference calls enabled. Our Skype username is ESPLIFT . If you are an oil & gas operator looking for independent ESP support (not affiliated with an ESP manufacturer nor the inherent commercial bias), please use the services of experienced engineers and retired ESP pros.
Providing you with artificial lift market and technology services using the latest advanced communications technology and web services. Only at www.ESPlift.com.
We all know that the consequences of pull costs are severe, - workover expense and lost production make it top priority to understand a particular pump's history in similar downhole environments.
Ever asked an ESP vendor what kind of runtime to expect for the pump you are considering purchasing to run downhole? You're probably looking to evaluate one vendor versus another vendor, and want some sort of apples to apples comparison, right?
Perhaps you're considering a performance based contract, or alliance agreement with an ESP vendor and looking to verify and compare their runtime assurances?
Problem with this approach is - who's auditing the vendors? And is this auditor an independent third party, or would it surprise you if the vendor uses its own selected data without an independent audit? What kind of questions should you be asking to help assure you of fair and unbiased reports and evaluations?
Here are the type of questions to ask ESP vendors that can go a long way to get the information you need to help you reach your production & runtime targets:
• Is your system runlife data audited by an independent third party? Or is this information that you determine yourself???
• Do you exclude short runs(for example- anything under 45 days, etc is not counted) from your basis & database, when determining runlife?
• Is your company wide overall runlife trending up, down or flat? What about for each individual pump, motor, & seal that I am considering purchasing?
Advance to the ESPlift™ forum, for more.
News (May 11, 2012), Source: ESPlift members. GE Weatherford???
Halliburton's recent entry into the artificial lift industry and more specifically the esp market sector has quickened the pace among lesser market share participants to ante up. See industry commentary by clicking here.
NEWS (Jan 30,2012), Source: ZH and ESPLIFT members. Oil Markets
Third US Aircraft Carrier Group Deploying near Iran.
For months now we have been following US naval developments and deployments in the Arabian Sea, which serve one purpose and one purpose only - to demonstrate US military strength in the Straits of Hormuz region and to keep Iranian 'offensive passions' subdued. Yet never has the US had a total of three aircraft carrier groups in the vicinity, always topping out at 2 in the Bahrain-based Fifth Fleet, most recently these being the CVN-70 Vinson and CVN 72 Lincoln, with a third boat present merely until a rotation in or out of the theater of operations was complete. That is about to change, and with it the prevailing price of Brent, which we are confident is about to take a new step wise price higher as the US makes it all too clear what the endgame is, because as Naval Today reports, the "US navy to deploy third carrier group to Persian Gulf", probably the CVN-77 George H.W. Bush which departed Norfolk two weeks ago according to the most recent naval update, or any other Norfolk-stationed aircraft carrier: there is a wide selection to choose from.
NEWS (Dec 22,2011), Source: ZH and ESPLIFT members. Heads up - Oil Markets- click on image to enlarge. - As a lot of the "West" enjoys the Christmas and New Year festivities or whatever celebration one indulges in, Iran is launching a "massive" 10 day war games naval exercise right in the belly of the beast. From Xinhua: "Iranian Navy Commander Rear Admiral Habibollah Sayyari announced today the upcoming launch of ten-day massive naval exercises in the international waters, the local satellite Press TV reported. Sayyari said at a press conference today that the naval maneuvers dubbed Velayat 90 will start on Saturday and will cover an area of 2,000 (1,250-mile) km stretching from the east of the Strait of Hormuz in the Persian Gulf to the Gulf of Aden, the report said. This is the first time that Iran's Navy carries out naval drills in such a vast area, he was quoted as saying. He said that the exercises will manifest Iran's military prowess and defense capabilities in the international waters, convey a message of peace and friendship to regional countries and test the newest military equipment among other objectives, said the report. He added that the newest missile systems and torpedoes will be employed in the maneuvers, adding that the most recent tactics used in subsurface battles will also be demonstrated. Iranian destroyers, missile-launching vessels, logistic vessels, drones and coastal missiles will also be tested, said the Iranian commander, according to the report." And while conventional wisdom is that the market is focused on what the upcoming closure of the Straits of Hormuz means for tanker routs and oil prices, there is another more disturbing possibility: with all those Iranian canoes, and soapboxes floating around, one wonders if one is bound to have a close encounter with USS CVN-74 John Stennis, which as the updated naval map (click on image to enlarge) from Stratfor shows, will be smack in the middle of the action.
NEWS (Oct 6,2011), Source: ZH and ESPLIFT members. Russian Arctic - The New #1 ?
Russia, currently vying for the title of world's top oil producer with Saudi Arabia, claimed that new findings in its offshore Arctic territories have effectively doubled the nation’s energy reserves. According to numerous Russian media reports, addressing a meeting of the sixth media forum of the United Russia Party on 25 September, Russian Natural Resources Minister Iury Trutnev said that the preliminary forecast is that resources in the Russian Arctic shelf are comparable to those in mainland Russia, adding, “Speaking of long-term planning, these reserves could last 100, may be 150 years, but longer is unlikely. Humanity will eventually have to look for new energy anyway. Recently, we completed 40-year talks with Norway, delineated the gray zone, and now obtained another 5 billion tons of fuel equivalent there.” Trutnev’s new Arctic reserve claims are buttressed by the United States Geological Survey (USGS) 2008 survey, which estimated that 90 billion barrels of undiscovered oil and 1.668 trillion cubic feet of undiscovered natural gas lie beneath the Arctic’s waters and ice, representing 13 percent of the world’s undiscovered oil. Strong oil prices, more advanced offshore equipment and receding sea ice are leading to a growing interest in the Arctic.
NEWS (August 5, 2011), Source: ESPLIFT members. NEXT WAVE ? - ONLINE ESP PRICING. You've heard it here first! The web provides companies immense opportunities for efficiencies in our industry. Things like data, technical information, & low cost communication. But what's something that's been missing ?
How about online pricing? If you've been tuned into the ESPLIFT forum, you're starting to see that ESP suppliers are finally coming around. We're expecting dialogue on the message board to increase along these lines over time. Check it out.
And in the meantime, here's a website with samples of online pricing: click here
NEWS (June 13th, 2011), Source: UK Guardian and ZH. CHINESE RIOTS ENTER THIRD DAY We started to report random riots in Eastern Europe two years ago ahead of the curve of the mainstream media as a possible indicator to effect the energy landscape, and the spreading of peoples' revolution has spread like wildwire.
How will this affect the oil & gas landscape moving into the future? The Arab Spring 2011 speaks for itself, as indications of what may occur in the future.
The latest hotsauce is in China.
In an indication of the prevailing popular mood among the key marginal economic force in China - its migrant worker population - hundreds of protesters rioted in the southern China city of Gunaghzou after a young pregnant street hawker was harassed by security guards, media reports said Monday. From Reuters: "Hong Kong television showed seething crowds of migrant workers from the southwestern province of Sichuan running through the streets of Zengcheng, smashing windows, setting fire to government buildings and overturning police vehicles.
Riot police were shown firing tear gas Sunday night, deploying armoured vehicles to disperse the crowds and handcuffing protesters. Witnesses said there were more than 1,000 protesters and at least one government office had been besieged. "People were running around like crazy," a shopowner in the area told the South China Morning Post newspaper. "I had to shut the shop by 7 p.m. and dared not come out."
While China reported slowing monetary conditions, with a miss in both the M2 and loan issuance in May, it is unclear what the Chinese equivalents of Bernanke's 15 minutes to Inflation: OFF is: as a reminder the upcoming CPI print is expected to come at a record 5.5%, which is the only piece of data that truly matters in China. If inflation continues its runaway rise, whether due to climatic conditions, or importing Bernanke's monetary policies, expect to see many more stories of violent popular unrest.
NEWS (May 27th, 2011), Source: ESPLIFT members. Blank Slate, and Anchors Away. Another New and Aspiring Upstart.Registered the first week of May, 2011, Summit ESP has opened its Tulsa-based corporate office doors for business. Funding and registration by Kaiser Francis Oil Company KFOC, leveraging their currently running ESPs operating at their production sites. Industry analysts query the business case, and speculate that KFOC may believe that near term monetary efficiencies can be obtained in their own fields replacing equipment and service when in need of repair or new installs with their upstart units, while in the future attempting to sell into other regional markets. It's possible they are borrowing from the playbook of Green Country ESP entry and subsequent sale at a premium price to Global Artificial Lift in 2009. The Summit ESP website lists a wide range of many job openings, from executive staffing needs, to service and operations technicians. In view of GE's recent acquistion into #3 market share Wood Group and expected plans to pursue market share growth, any new upstart entry into the domestic market should be prepared to dig deep into their cash till.
NEWS (May 24th, 2011), Source: ZHedge. China Oil Demand Projected To Hit 11 MM/bpd By 2015, Up 25% From Now; Will Reach Consumption Parity With US By 2030
With the topic of oil once again dominating the air waves courtesy of Goldman Sach's most recent flip flop on Brent, we look at one of those things that few if any have actually done much analysis on over the past decade, namely supply and demand. As it is no secret that the primary driver in price formation of virtually all commodities has been excess liquidity, the actual fundamentals have been drowned for a long time. Yet they still remain. Of all "demand fundamentals", the biggest one is and will be China. Should the world indeed proceed to tighten across the globe, the question of Chinese demand will increasingly become one of substantial importance. Here is how Platts sees Chinese oil demand in the next several years: "China's demand for oil will grow 4-5% a year to hit 530 million-560 million mt (10.6 million b/d-11.3 million b/d) in 2015, with transport fuel and chemical feedstocks driving the increase, a senior Chinese researcher said Wednesday." Platts estimates that China's current oil consumption is about 450 million mts, a 12.2% increase over the past year. And following 2015, "Growth will then slow to 2%-3% a year, to reach 590 million-650 million mt by 2020, said Liu Xiao Li of the Energy Research Institute, part of China's economic planning agency, the National Development and Reform Commission. With oil production in 2020 expected to be 200 million-230 million mt, that would imply an import dependence of around 65%, she added." One can thus see why China is ever so cautious proceeding to procure E&P exposure and infrastructure projects around the world: the country realizes that without a friendly foreign "import" base, there is no way it can grow into its energy demand. Lastly, for those who collect parity facts, "in a presentation at the International Air Transport Association's Aviation Fuel Forum, Standard Chartered Bank said China will overtake Europe as the world's second largest consumer of oil before 2020, with around 13 million-14 million b/d of demand. The bank's data indicates China would catch up with the US sometime after 2030. Standard Chartered's data has China's oil demand approaching 17 million b/d around that year and still rising, with US oil demand around 18 million b/d and falling." Luckily by then we should have far more evidence whether the Peak Oil theory is indeed true, in which case the world will have far greater problems in the next 19 years than anything seen to date.
NEWS (March 14, 2011) Halliburton Weatherford ? - Halliburton Al Khorayef ?? - Halliburton Artificial Lift at all ??? STREET OPINION Source: StreetInsider.com
FBR Capital believes Halliburton or another large-cap player could be interested in buying Weatherford for its artificial lift business which the firm calls "very attractive."
FBR notes that Weatherford is the purest play on artificial lift and Halliburton does not have an artificial lift business. Halliburton previously made a run at John Wood Group losing out to eventual suitor General Electric.
"We would not be surprised to see Halliburton move to acquire Weatherford, although the unsettled Foreign Corrupt Practices Act (FCPA) probe presents a roadblock for the time being.", notes FBR Capital.
Regarding Halliburton Al Khorayef, although it is heard that Halliburton is due in Saudi for the last audit in the next couple of weeks, the current status of any deal is now considered purely rumour mongering, with no further basis of intent. No deal.
You can find current commentary on acquisition and the market landscape from ESPLIFT members on the community forum for all registered members. Members' opinions note that a Halliburton Al Khorayef deal would be a challenging business case and enterprise business execution questionable, especially in view of the complexity, business cost and risk profile of manufacturing overhead in Saudi Arabia, together with sanctioned businesses in Iran, Sudan, and the competitive matrix and political affairs in Libya, etc.
NEWS, Feb 26, 2011, SO WHAT'S NEXT AFTER REGIMES ARE TOPPLED ??? , Source: Member reports & commentary. Go ahead and click on today's edition of Iran's Tehran Times. The image can be saved and enlarged so that you can read each article on the front page.
Jordan, Egypt, Bahrain, Libya, Tunisia, Algeria - large gathering protests are still occurring, even after the regimes have been toppled (Egypt, Tunisia to date). So what's next after these regimes have been kicked out?
Does anybody really believe that this is an environment for oil price stability?
Post your commentary and thoughts on the ESPLIFT forum.
"Libya should be both the first and the last of the major producers to see any significant disruption to oil output, allowing the risk premium to fall," said Capital Economics, which expects Brent to fall to $85 by the end of the year.
LONG TERM OIL PRICE PARADIGM SHIFTING UPWARDS, News Feb 16th, 2011. Source: James Schlesinger. Evidence and logic are outlined:
First, we remain heavily dependent on super-giant and giant oilfields discovered in the 50s and 60s of the last century… it might be added, of the last millennium. Only rarely in recent decades have discoveries equaled production. Mostly, it’s been one barrel discovered for every three barrels produced.
Second, old super-giants like Burgan in Kuwait and [Cantarell] in Mexico have gone into decline earlier than had been anticipated… and going into decline have been Alaska, the North Sea, western Siberia and the like.
Third, while it is not yet “Twilight in the Desert” (as you may have read) still we are well into the afternoon, even in Saudi Arabia. Even the Ghawar oilfield is increasingly hard to sustain.
Fourth, in 2004 we experienced our first demand-driven price spike, as opposed to the previous price spikes driven by supply interruptions. We still operate at about the level of production capacity of 2004.
Next, given projected decline curves running from 4 to 6 percent, and the projected increase in demand during the next quarter century, we shall require the new capacity equivalence of five Saudi Arabias.
Even the International Energy Agency, which previously had been sanguine, now suggests that we can no longer increase production of conventional oil in the course of this decade.
NEWS: IS LIBYA NEXT? Source: Member reports and BBC.
Feb 16, 2011. Protests are escalating in Libya, and a call for national protest is made for tomorrow.Let's see what happens. The winds of "wants for change" continue to blow through North Africa, the Middle East and Iran. Root cause? Demographics - young adults wanting modern liberty, decent jobs and economic well being, and the basics of food, shelter and ability to raise a family.
Will Libya's regime topple like Tunisia and Egypt? How about young adults in Bahrain, will their quest for change then sweep and inspire other GCC regimes to tremble at the thought of similar protests and revolts? And how will all this affect the life blood of the region - oil and gas?Times, they are a changin'. Stay tuned.
LIGHTS ON ! - GE Acquires John Wood Group Unit for $2.8 Billion
February 13, 2011, ---
Welcome GE to the ESP - GE ESP
General Electric has entered into an agreement to acquire the well-support division of John Wood Group Plc for about $2.8 billion, adding ESP electric submersible pumps to its oil- and gas-production product lineup.
With approval of WG shareholders, the transaction is to close later this year, GE said in a statement today. The division had sales of $947 million and earnings of $166 million before ITDA last year.
GE has dug in their pockets for about $5 billion in just the past five months on purchases in oilfield services, including Dresser Inc. and Wellstream Holdings Plc. What ever happened to GE's financial demise during the 2008 downtown as press reports cite that GE now has a stockpile of more than $20 billion in annual discretionary cash!
Does anybody really expect GE to remain in #3 market share position in the ESP sector, behind SLB and BHI? Expect lots of change and integration with other GE technologies and their service distibution to capture market share, together with more acquisitions.
This artificial lift industry sure is getting interesting ... !
NEWS: 2011/2012 ARTIFICIAL LIFT MARKET REPORT, Source: ALPS press release. Artificial Lift Pro Services releases their latest Artificial Lift Market Report, Industry Survey and Forecasts thru 2012. Highlights include Total Available Market (TAM), Served Available Market (SAM), Share of Market (SOM), Installed base and growth assumptions products/service , geographical distribution, future growth prospects, market product segmentation & attributes, market pricing, competitor analysis, prospect base, and product line gross margin estimates. In some instances, trendable data with smoothing moving averages over selected short and long term time periods.
The report is distributed by way of a limited quantity of licenses for Wall Street analysts, investors, Oil & Gas operators, & oilfield service / supply companies studying acquisition candidates and/ or new market strategies. More information by clicking here.
NEWS: COMMODITY SPIKES & OIL PRICES - Feb 5, 2011. Source: ADP and member reports. --- Oil prices up. Wheat, soybeans, rice, and foodstuffs surging. A powerful new cycle of global growth may be under way and the whole nexus of commodities is on fire. March contracts for Brent crude oil jumped to a two-year high of $103 a barrel on Thursday, while copper broke through $10,000 / ton & cotton has reached the highest price since the US Confederacy halted exports during the Civil War in the 1860s.
The UN's Food and Agriculture Organization (FAO) said its index of global food prices had hit a fresh record in January, while Goldman Sachs's farm index has risen 90pc since June.
NEWS: TRUMP - OIL PRICES - EITHER WAY - EXPLODE OR CRASH? - Jan 31st, 2011. Source: Interview via NewsMax video, click on foto to access. --- Donald Trump considering a run for U.S. President in 2012, responds to speculation that the turmoil in Egypt and other countries in North Africa and the Middle East could push oil prices to as high as $200 /barrel.
“It also could go the other way. Frankly, the Middle East is a tinderbox. It’s going to explode. OPEC will probably be destroyed if it explodes, and oil prices could go the other way.
“I understand economics. You break up what would normally be an illegal monopoly, OPEC, and break it up very strongly. The Middle East is exploding, and I’m saying that could have a positive impact on oil prices".
“If you look at oil right now, it’s soon going to be $100 a barrel. Far too high."
BP SUCCESS IN IRAQ, Jan. 18 Source: Member reports & UPI --- Congratulations to BP for reaching their first contractual milestone. It was a "massive undertaking", with rewards. BP has made public saying it increased production utilizing electric submersible pumps at the Rumaila oil field in Iraq by 10 percent of the initial 1.06 million b/d promised.
"Reaching this production milestone is a great achievement and underlines BP's success in building its presence in the region," BP's CEO Bob Dudley stated. "Increasing production at Rumaila, the world's fourth largest oilfield, has been a massive undertaking."
BP and the China National Petroleum Corp. CNPC contracted to raise production at Rumaila to 2.85 million bpd within seven years. Once that level is reached, it would be the second most productive oil field after the Abqaiq Udy Shedgum area Ghawar field in Saudi Arabia.
BP said it had 20 rigs mobilized at Rumailah. A total of 41 wells have been drilled in the field during the course of a year of work. To date, ESP vendors awarded to supply pumps are AKP, BHI and Canadian Advanced. AKP and BHI furnished pumps to BP.
By contract, operators in Iraq are required to increase oil production by 10 percent within 2012. These contracts were signed in 2009. See news archives for details.
Iraqi Oil Minister Abdul Kareem Luaibi said in a statement the production increase was "an important step for Iraq," which one day hopes to rival Saudi Arabia in terms of oil production.
NEWS Jan 17, 2011 - VZ SURPASSES KSA - Source: USGS, CNBC. According to VZ government officials, Venezuela has overtaken Saudi Arabia as the world leader in oil reserves with certified deposits leaping to 297 billion barrels at the end of 2010. A year ago, the U.S. Geological Survey reported that the Orinoco belt held some 513 billion barrels of crude that could be recovered — if costs were not an issue. OPEC reports that Saudi Arabia's reserves stood at 265 billion barrels in 2009. Although very heavy crude as compared to Saudi's light sweet production, the key fact is that most of the GCC including Saudi proven reserves have not been upgraded. There have been no recent major productive field discoveries in the Middle East region albeit massive geologic seismic investment through the years.
NEWS (Jan 16, 2011) WILDFIRE? Source- Member reports & Al Khaleej. It's true that demographics in North African countries such as Tunisia, Algeria, Libya, Egypt and the GCC share common denominators of a large young adult population. Will similar situations as the Tunisian protests, revolt and regime change spread throughout the region? Perhaps even threaten oil price stability at sometime in the future? Highly unlikely, notes Martin Chenevert, AEI Middle East analyst. "Economies in the energy rich GCC are robust and offer a multitude of educational and business opportunity for young adults. As for the remainder of North Africa, authoritarian & long standing regimes are on notice. But the implications to any effect on oil price stability are nil, at least in the near term."
NEWS (Jan 3, 2011) Public company Dover said it has acquired down-hole rod pumps maker Harbison-Fischer, Inc. for $402.5 million. Sales revenue projections for 2011 - $160 million -> purchase price of 2.5 times sales. This acquisition is just another example of recent growth of investment interest in the artificial lift market.
NEWS (Dec 26th, 2010) - REAL TIME MONITOR - Source: Co. Press Release Here's the latest product innovation from Direct Drive Head Inc out of Houston. It's called the Smart Pumper. Features: it measures and records well site data and makes operational decisions without constant production engineer oversight. It’s designed to streamline automation and monitoring to manage any type well site operation — in real-time over the web via various built-in communication protocols. It controls drive heads with PCPs, ESPs, pumpjacks with rod pumps, or saltwater disposal pump stations.
One of the neat things about ESPLift is our ability to help companies post their new product releases and get their message out to operators. Does your company have news you'd like to share? Post it on the ESP professionals' message board - gratis!
NEWS (Nov 1, 2010) - LIFTSTAR VENTURE CAPITAL INVESTORS - Source: Houston Chronicle Significant revenue growth in the artificial lift industry has resulted in the first private placement of venture capital funds dedicated to artificial lift technologies, service, commissioning and manufacturing. LiftStar is managed by industry professionals with extensive mergers and acquisitions (M&A) experience.
Texas based LiftStar Capital Resources are engaged as the premier industry venture capital firm, with initial private placement funding targeted specifically for direct investment in the artificial lift market sector. The fund focuses on partnering with regional investors to establish manufacturing and repair service centers close to production sites anywhere in the world.
In addition, the company is set to invest in innovations by individual professionals looking to develop and market their ideas to oil & gas operators.
Through a separate operating division, LiftStar administrates providing personnel on contract for oil service companies and oil & gas operators. Contract talent includes engineers, field service, VFD technicians, labor, managers, & shop personnel.
Karma Artificial Lift is reportedly soon to break ground as the first ESP OEM to directly invest in Iraq with a complete manufacturing, service and repair facility. Plans are to grow and expand into the massive Iraq oilfield redevelopment efforts that are now underway. Assy, repair and service plant are planned completed in 2011. Electric submersible pumps are to be purpose designed for the high water cut & high temperature, H2S, and sand fines to be produced. Location is in the proximity of the southern Iraqi industrial city of Al Basrah nearby production wellsites operated by BP and soon Exxon Mobil.
Karma is expected to offer complete parts and 24/7 service, capable to repair pump assemblies of any brand manufacturer. Service package is also to include complete commissioning of remote COM telemetry production optimisation capabilities, tieing in production data for operators to manage critical data.
Karma is reportedly now in discussions to exclusively partner with at least one of the major ESP manufacturers.
NEWS (Sep 2, 2010) BAKER HUGHES & CENTRILIFT 'READJUSTMENTS' AGAIN? (Source - Heard on Street & Centrilift employee confirmations)
"BHI and Centrilift , 5% layoff, multiple VP's being let go, VP Nelson Ney terminated yesterday, and relocations such as VP Ron Berger." Baker Hughes management employee confirmed that multiple employees at multiple plants were fired today.
Inside news source that "Chad Deaton (may also be) on his way out and trying everything he can do to make analysts happy in October." Real concern with BHI stock. "Many more are leaving on their own". Commentary posted on the community forum.
NEWS (Sep 1, 2010) HALLIBURTON IRAQ OIL SERVICE CONTRACT AWARDS, (Source - Zacks & IraqIQ.com) Halliburton's PR office announced that it won an oil field redevelopment contract from Italian oil company Eni SpA.
Halliburton scope is 20 wells in the Zubair field of southern Iraq, - wire-line logging, perforating and acidizing to enhance production of the existing wells.
Recently, Halliburton received a letter of intent from Shell Iraq Petroleum Development BV to develop the Majnoon field in southern Iraq. Halliburton will serve as project manager for the development and work with rig contractor Nabors Industries Ltd. and Iraq Drilling Company (“IDC”). Side note, the early stages of the rush is on for oil service companies to enter and structure up in Iraq. Those companies considering structuring up in Iraq are contracting the services of facilitator Iraqi locals out of Baghdad and Al Basrah with deep pocket investment partners out of the UAE and Bahrain, an example: the Iraq IQ Group. www.IraqIQ.com
NEWS (July 18, 2010) CHINA NOW LARGEST CONSUMER OF ENERGY Source: (WSJ) China is now the world's biggest energy consumer, knocking the U.S. off a perch it held for more than a century, according to new data from the International Energy Agency."The fact that China overtook the U.S. as the world's largest energy consumer symbolizes the start of a new age in the history of energy," IEA chief economist Fatih Birol said in an interview. The U.S. had been the biggest overall energy consumer since the early 1900s, he said.China's total energy consumption has clocked annual double-digit growth rates for many years, driven by the country's big industrial base. Highlighting how quickly its energy demand has increased, China's total energy consumption was just half the size of the U.S. 10 years ago.
PRESS RELEASE (Jun 15, 2010) An ESP Troubleshooting training group ( 4 1/2 days) for oil & gas operators is being held in London, Sept 19-23, by Artificial Lift.pro. It's an interactive series ( not just lectures!), so come prepared to learn how to improve your operations. Request curriculum, course objectives (take-aways), and pricing information at their website. ESP School.
NEWS (Jun 14, 2010) IMMINENT GAS SHORTAGE IN THE GCC? Source: (Booz & Co. & Member reports.) Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates are facing a reversal of a decades-old status quo: an increasing gas shortage in the region amid a significant supply overhang in the rest of the world. Although the global economic slump has reduced the need for gas in most regions, demand in the Gulf Cooperation Council (GCC) for power generation from some industrial sectors has far outpaced the region's gas exploration and production. As a result, GCC countries find themselves in uncharted territory, an almost contradictory position of having to import gas, when they have exported gas for decades. For certain, GCC demographics and living standards will always require a plentiful supply of gas for desalinized water and power consumption.
NEWS (Jun 9, 2010) Source: CNBC link, click here $300-$400/b oil in 10 years? Interesting interview with T Boone Pickens. Growing importance of gas in the USA market - Shell and Exxon investments in the USA, prospects for a 2010 NAT GAS Act being passed by Congress, and other insights.
NEWS - Schlumberger 1Q 2010 earnings transcript (Apr 26, 2010) Source: Seeking Alpha. Click here to view a transcript of Schlumberger's commentary regarding 2010, 2011 and 2012 financial and operating outlook in various geographical and product market segments. Also discussions about SLB's recent acquisition of Smith.
Click on graphic to enlarge. OIL SANDS UPDATE (April 15, 2010) With oil prices now in the $85 range, a member emailed to ask what we've heard about the propensity for oil sands to gear back up to previous levels. Canadian oil sands investments stop being economical below $65 a barrel. That proved especially painful in 2008 when the price of oil fell below $35. Some $90 billion (Canadian) of the country’s sands projects were shelved. The question is whether the perception is that oil prices will remain over a smoothed average of time above production cost to make the investment worth the risk. Our opinion - study the producers who've made money over the past 10 years. That's how to manage the business.
NEWS (April 13, 2010) SHELL PERDIDO PRODUCTION GAMBIT Source: ABC 13 and Neftegaz.ru. Click on Perdido images to view video pod. How will the Centrilift first article 1200 hp + ESPs perform? Will they meet Shell's long run life expectations ~ 7 years?
Hope so, as production is slated for 100,000 b/d & a twenty year reservoir production life. As reported by ABC, payback time period information remains under wraps within Shell. Another related question is how many $$$ are factored in for esp pull costs? If successful, this will be an immense step forward for the ESP industry. First article ESP equipment can be dicey, so let's see. Interesting that one of the key Centrilift executives
who signed off and assured Shell that these pumps would run for so many years has recently resigned and left the oil & gas industry .... Stay tuned as ESP vendor performance press releases remain rather quiet to date. See for yourself by clicking here to search for news stories.
NEWS (April 9, 2010) DEEPWATER GULF OF MEXICO UPDATE Source: Chevron and Houston Chronicle. For Chevron, the deepwater Gulf of Mexico is the largest of four geographic focus areas for the company. As such, it receives “more than its fair share” of company resources — of the $17.3 billion the company will spend in 2010 on its upstream oil and gas exploration and production budget, $4.1 billion will go to the U.S., including the Gulf of Mexico, and will for the next five to 10 years, said Gary Luquette, president of Chevron's North America Exploration and Production Co. in Houston. Other operators include BP, Shell and Marathon. BP, the largest oil and gas producer in the Gulf, recently relocated its global exploration and production business to Houston from Europe as it eyes growth in the U.S. offshore area.
Royal Dutch Shell says in coming years, its Upstream Americas unit, which oversees oil and gas exploration and production activities in North and South America, has the opportunity to attract up to 40 percent of the European company's global upstream budget, up from 25 percent in 2005, partly for projects in the Gulf of Mexico liker Perdido.
Elsewhere, Houston's Marathon Oil said in February it plans to spend $370 million this year on exploration wells in the deepwater Gulf of Mexico, more than double what it spent in 2009. And more state-owned oil companies are either entering the region for the first time or making expansion plans.
NEWS - Return to $150 oil this Summer? (Apr 6, 2010) Source: CNBC
NEWS (Mar 31, 2010) BP CNOOC JOINT VENTURE SELECTS AL KHORAYEF. Source: BP press release, Houston Chronicle, & member reports. Al Khorayef is awarded the major BP contract to supply critical ESP production equipment and related artificial lift services for the Rumaila field in Iraq. Baker Hughes Centrilift is to share in a portion of the $100 million award. BP most impressed with Al Khorayef Middle East factory infrastructure, regional engineering and service support, and operations logistics. "Thumbs up to Al Khorayef and their advanced capabilities to regionally manufacture world class ESP equipment. Local service support is also key." A member's opinion - if not already, Khorayef is destined to be the #1 ESP product and service provider in the Middle East. BP and CNNOC's investment in ordering Al Khorayef technology and services for the vital Rumaila field is further evidence of big changes in the ESP market landscape.
UPDATE IRAQ (Mar 27, 2010)
Basrah – The Rumaila oil fields, North and South, are getting their biggest face lift in a long time and at a rate which will see the fields doubling their production within three years to some 2 million barrels per day. At a joint management committee (JMC) meeting last week, the second so far since the Rumaila service contract won by BP and CNPC in June 2009 became effective Dec. 17, several major contracts worth over $600 million were awarded. Drilling contractor awards confirmed to us today : Contracts for the drilling of 56 wells went to a Chinese company which will provide 3 rigs, Iraq Drilling Co. (IDC) jointly with Schlumberger will provide another 3 rigs and a seventh rig is to be provided by Weatherford. An Iraqi based source to ESPlift.com tells us that two ESP suppliers apparently have been awarded contracts totalling what is expected to be over $120 million during the duration of the contract. As soon as we can further confirm, ESP awards news will be posted.
Reference, click here for a list and map of Iraqi oilfields and the respective operator / partner.
NEWS - GOM PRODUCTION FACTOID (Mar 26, 2010).
Despite all the billions spent on offshore development, US oil production in the Gulf of Mexico has not grown in the half-decade since Hurricane Katrina left her mark. In fact, production in the region has only recently climbed back to its pre-Katrina mark of roughly 1.6 million b/d.
NEWS - Al Qaeda planning Saudi oil attack (Mar 25, 2010) Source: Alert Net and member reports.
The al Qaeda chief target is Abqaiq, the largest producing reservior in the world, and most prolific of the Saudi Ghawar field (5 million b/d!). Major attack foiled - 113 militants arrested, almost half were Yemenis. Henry Wilkinson, a counter-terrorism expert at Janusian security consultants in London, said the arrests showed the Saudi oil sector remained a priority target for al Qaeda. Their regional arm, al Qaeda in the Arabian Peninsula (AQAP), in Yemen "represents a consistent, if not growing threat to the oil sector and Western interests in the region", he said.
NEWS - Wall Street ponders - Halliburton looking for Artificial Lift acquisitions? (Mar 5, 2010) Source: Business Week."Schlumberger’s purchase (of Smith Int'l) may pressure Halliburton to accelerate or more aggressively pursue acquisitions it’s been working on," said Tom Curran, an analyst at Wells Fargo Securities.
"Artificial lift may become a “must-have” business for Halliburton," Curran said in a note to clients.
NEWS - Caspian CPC update. (Mar 3, 2010) Source: CPC website data.
Kazakh and Russian oil exports via the Caspian Pipeline Consortium (CPC) fell 10.3 percent to 713,400 barrels per day (bpd) in February from 796,100 bpd in January.
The consortium transported 20,002,463 barrels of CPC Blend CPC-E in February versus 23,680,144 barrels in January.
The pipeline group is led by U.S. major Chevron and includes Russian pipeline company Transneft, ExxonMobil, Shell Oil, and LUKOIL.
CPC state shareholders Russia and Kazakhstan own 31 percent and 19 percent of CPC respectively.
The group exports CPC Blend from a terminal near the Russian port of Novorossiisk. Russian companies such as Rosneft, Surgutneftegas, & TNK-BP also ship crude via CPC.
In 2009, CPC transported 34.574 million tonnes of oil, up from 31.470 million tonnes in 2008.
NEWS Kuwait to import gas by 2019 (Mar 1, 2010) Source: BMI.
The latest Kuwait Oil & Gas Report from BMI forecasts that the country will account for 2.68% of
Middle East (ME) regional oil demand by 2014, while providing 10.65% of supply. Regional oil use of
8.24mn barrels per day (b/d) in 2001 rose to an estimated 11.38mn b/d in 2009. It should average
11.66mn b/d in 2010 and then rise to around 12.68mn b/d by 2014. Regional oil production was 22.87mn
b/d in 2001 and in 2009 averaged an estimated 24.79mn b/d. It is set to rise to 28.65mn b/d by 2014. Oil
exports are growing steadily because demand growth is lagging the pace of supply expansion. In 2001,
the region was exporting an average 14.63mn b/d. This total had fallen to an estimated 13.41mn b/d in
2009, but is forecast to reach 15.96mn b/d by 2014. Iraq has the greatest production growth potential,
followed by Qatar.
Between 2009 and 2019, expect an increase in Kuwaiti oil production of 45.1%, with crude
volumes rising steadily to 3.65mn b/d by year 2019. Domestic Kuwaiti oil consumption between
2009 and 2019 is set to increase by 33.0%, with growth slowing to an assumed 3.0% per annum towards
the end of the period and the country using 403,000b/d by 2019. Gas production is expected to climb to
almost 27bcm by the end of the period. This translates to a demand growth of 167.6%, so expect actual gas import requirements of more than 16bcm by 2019.
NEWS (Feb 3, 2010) Source: WSJ. CNOOC 2010 Investments: US$1.47 billion will go toward exploration, US$4.81 billion will be used to develop oil and gas fields and US$1.50 billion will be spent on production.
CNOOC is targeting production of 275 million to 290 million barrels of oil equivalent this year, up from 226 million to 228 million BOE in 2009.
The 2010 output forecast is based on an estimated West Texas Intermediate crude price of $75 a barrel this year.
The company targets growth in oil and gas output at a compound annual rate of 6%-10% between 2011 and 2015.
In 2010, CNOOC plans to drill more than 95 exploration wells, and its exploration will continue to focus on offshore China.
Two to three deepwater wells are planned in China and nine new projects are expected to come onstream this year, including major projects in Bohai Bay and areas in the western part of the South China Sea.
NEWS (Jan 25, 2010) Source: Member reports. Update - Ongoing Centrilift personnel matters.
Confirming rumours from late last year, local news media in the Tulsa area (click here) have announced that about 100 Centrilift factory employees in Claremore are being moved to Baker Hughes Houston in what appears to be the first big wave of transfers. Members opine that Baker Hughes would move all operations from Claremore to Houston immediately if possible not to disrupt manufacturing. Is it only a short time before Claremore loses its Centrilift factory? Within a day of these news releases, there'd been a turn of events. Media interview with Gary Flaharty of parent company Baker Hughes in Houston apparently repudiates, click here. ESPlift.com welcomes Centrilift to tell us the whole story directly, and we'd be pleased to publish it.
NEWS (Jan 14, 2010) Source: Members and Saudi Arabian news sources. Update - YEMEN.
The intensified campaign against al-Qaeda comes as Yemen's government seeks even more economic and development aid to combat extreme levels of poverty, unemployment and illiteracy. World leaders are scheduled to meet in London on Jan. 28 to discuss ways to combat Islamic radicalization in Yemen. The government is besieged with multiple emergencies, including a civil war in the north and a secessionist movement in the south. Even as the government takes on al-Qaeda, its five-month-old offensive against Shiite rebels in the north is intensifying.
Yemeni Interior Ministry officials said yesterday that at least 15 rebels were killed in clashes over the past two days; a day earlier, a Saudi defense official said the kingdom's forces had killed hundreds of Yemeni rebels inside Saudi territory. Saudi Arabia entered the conflict in November after a Yemeni rebel raid into its territory.
Saudi Arabia's assistant defense minister, Prince Khaled bin Sultan, told reporters that clashes with the Yemeni rebels have killed 82 Saudi soldiers, underscoring the toll the kingdom is enduring even as it conducts airstrikes and uses heavy firepower against the rebels.
NEWS (Dec 4, 2009) Source: Lucia Kassai & Helder Marinho.
--- Petroleo Brasileiro plans to expand its $174.4 billion investment program as it develops offshore fields in the so-called pre-salt region.
Petrobras is to announce the expanded 2009-2013 plan in the first quarter, Chief Executive Officer Jose Sergio Gabrielli said at an event in Sao Paulo today. He said the company may increase investments in “all areas,” including oil exploration, production and refining, as well as fertilizer output and electricity projects.
Petrobras is investing to boost production by more than half and develop the Tupi field, the Americas’ largest oil discovery in more than three decades. Goal is to increase total output to 3.7 million barrels a day by 2013, up 52 percent from 2.4 million at the end of last year.
By 2020, Petrobras expects to have more than doubled oil production to 5.7 million barrels a day.
PHASE SHIFT TRANSFORMERS WHAT'S THE REAL STORY?
Intro to newbies: A phase-shifting transformer (PST), also known as a quadrature booster, or more simply a quad booster, is a specialized form of transformer used to control the flow of real power on three-phase electricity. (ref: Weedy, D. (1988). Electrical Power Systems. Wiley.)
In the ESP world, it's about mitigating harmonics back on the point of commmon coupling (PCC).
Sounds like at least one of the major ESP variable speed drive manufacturers is making quite a killing selling PST's, - cashing in $$$ on these clumsy "black box" units, instead of more modern units that can be manufactured and supplied at a fraction of the cost. Why not sell a big box if no one buying knows better or has the specific experience to ask the right questions?
Besides, is a PST really needed - or is it just a Band Aid plaster approach, to a harmonic issue inherent when improperly running an ESP with a VSD? Is it possible that there are ESP manufacturers who don't understand how to recommend operating their esps with drives to avoid harmonics issues (amazing possibility!), without the use of a PST? Members report that profits, management with poor electrical engineering and downhole hydraulics technical skill sets are the real drivers, in the face of contradictory field experience!
So if you're contemplating purchasing one of these PST's with your next VSD package, here's a good place to educate up and ask other pros with real experience
Of course Production Optimization matters to you! But ways to achieve production optimisation may mean something different to you, than it does to another oil & gas professional. And perhaps there are many subject items that you did not consider that could be affecting your achieving the long runs and the production targets you are planning.
It's hoped that the dialogues you participate in on this professional community forum will go a long way helping you learn with others.
Most importantly, if you have a question, please post it. If you have a comment or thought to share, please post it. If you'd just like to listen to others, that's OK too. Please note that community members who do not communicate by sharing questions or comments within a 90 day period will need to register again, with a new username, password and email address unless worked out with admin in advance. We understand that many members travel and are busy at wellsites throughout the world. So just let us know in advance if you need a longer user time extension between posts and we can do that for you.
What else is offered by the community of espLIFT.com professionals?
API RP11S2 TEST STANDARDS FOR THE ESP Editorialposted by DavidPDavidson
Not much has changed since the first draft of the API RPI S2 standard in the mid 1980's. But ESP technology has changed significantly. Mr Davidson's editorial examines the issues. Click here for the full report.
View news shared by industry pros throughout the world. Free jobsite postings. • 24/7 technical and commercial market pricing message boards dedicated to artificial lift engineers and equipment buyers. No cost registration. Users may remain anonymous.
• Community members may be contracted to offer fee based independent third party commercial & technical support for oil & gas operators when specifying and purchasing electric submersible pump system surface and downhole equipment. Members are experienced pros ready to help oil & gas operators learn to ask OEMs smart questions to help keep you out of trouble, save you on operating expenses, and improve production. Services are provided independently by members, many who are retired oil & gas artificial lift professionals with over 25 + years of experience. Contact us today for details. • Advanced in house or field based ESP training, customized to meet your requirements. Applications and field service installation and operating experience. Let members know when you'd like your employees to receive training targeted to what's needed. No filler, no nonsense. Learn to do your job effectively. Contact us today, and tell us what training is needed.
A primary feature of this website forum is to allow participants a place to easily get together and discuss professional knowledge without the hassle and expense of travelling. Besides your travel savings in time and money, this ESPlift™ forum is not unlike the traditional 'brick and mortar' forums such as the bi-annual SPE Roundtable in Houston held in late April before the OTC, SPE oil & gas regional get-togethers around the world, and events like the Middle East Artificial Lift Forum.
Another feature is that you reach out to other oil & gas professionals throughout the world, instantaneously and efficiently. When you exchange conversations with other professionals, you may be anonymous or share your full name and contact information. Your choice.
What can be better than a no cost forum to register and participate? No travel time and expense. The real lowdown from users and operators like you, sharing their experience. All in the convenience of your home, office, operating site or other workplace.
Get the information that YOU need to best plan and run your operations. Weary of the inherent sales pressure, commercial bias and information you may get from manufacturers that leave you with more questions than answers? ... about the - pros & cons of various other mfg's equipment technology/ market price information, run time reliability history, operating expenses, service availability, etc. Then, you've arrived at the right place! www.ESPlift.com
TRANSFORMER RELATED QUESTIONS & ANSWERS FOR ESP APPLICATIONS posted by J.Savitch
Are you aware that transformers used in ESP applications with VSDs, must be certified by the transformer manufacturer specifically for VSD inverter duty?
A forum member posted 100+ frequently asked questions about transformers and ESP's on the message board.
This website is in its third year, having launched March, 2008. Electric Submersible Pump ESP Pumps. It's OK to just look, but please post if you have anything to add! Your posts, whether questions or comments, will go a long way to help the message board reach out to professionals throughout the industry. Lots of exciting benefits to come- live audio and video conferencing on specific topics of interest, dedicated tender support, advanced artificial lift and ESP training offerings- both online, and in person at your location, and text/photo based, & live streaming installation & troubleshooting support from veteran ESP field service professionals. Let us know your ideas for future improvements.
This website and its forum is a free press - news media outlet, and an independent professional community & opinion conversation exchange between its participants. It is not affiliated with other professional organizations such as API, ASME, or SPE nor by industry manufacturers and its oil service operating companies such as ABB, Smith International (SII) SmithLift, Baker Hughes Centrilift, Borets, Alnus, Canadian Advanced, GR Group, Schlumberger Reda, Wood Group ESPI, or
Weatherford. Copyrights and trade names are the property of its respective owner.
LIVE AUDIO INTERNET STREAM RADIO BROADCAST - ON WELLSITE OR AT YOUR OFFICE First Wednesday of every even month, 14:00 GMT JOIN IN BY TELEPHONE, SKYPE® OR EMAIL WITH YOUR COMMENTARY AND QUESTIONS
Announcing a new service with no fee for ESPlift.com members from around the world.
If you enjoy listening and sometimes participating in radio interview shows, then we hope you are enjoying this new service. ESPlift has launched a similar format via internet streaming radio dedicated to oil & gas artificial lift professionals. The concept may be novel to our industry, but obviously common place in media such as specialist programming on TV and radio. ESPlift members call in to our forum to our Houston, Rio di Janiero or Geneve based telephone lines, or email questions and responses during our 90 minute program. Broadcast is from ESPlift web servers, and is to stream under 17 kb/s so to be accessible even at low baud rates.
Each program is featuring an artificial lift specialist to host the program. If you are a member and would like to host one of the programs, or provide a pre-recorded audio segment to broadcast, please let us know. To develop programming, our membership is asked to let us know your suggestions for the program - for example - members may have specific application questions, troubleshooting, or looking for employees or members inquiring about open positions. Some questions that we would appreciate your feedback- what content would you like, what is the best time frame for you, whether it would be valuable to you, and whether you plan on calling in or emailing your commentary during the show? Also, should we offer enterprise written chat support during the audio programming?
We realize this is new technology to some, and hope it will become another valuable element in the ESPlift service package for our membership.
In addition, we are looking for members who would like to moderate the board and also be guests during the program, either offering your expertise, or commentary about common issues affecting operations and the industry.
Email suggestions to: internetradio@ESPlift.com Please let us know. Thank you!
Click the play button to test your computer's live streaming capability. Please let us know how it works on your system. We'd appreciate hearing back from you!
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