Oil industry: Equinor Energy discovers a well with commercial potential

pétrolier

Partagez:

The oil industry has not yet said its last word: Norwegian fossil fuel, oil and gas company Equinor Energy discovered a new oil well in July 2020.

Development of the oil industry in Norway

It is located in the North Sea, about 160 kilometers west of Floro in Norway. With this discovery, the number of wells in production permit 089 now stands at 41. The latter was awarded in 1984 during the eighth cycle of the bachelor’s degree.

Offshore drilling

This new hydrocarbon source came to light via a sidetrack drilled from the 34/7-E-4 AH AS development well northwest of the Vigdis Vest field. It was dug to a vertical depth of 2,517 metres below sea level for a measured depth of 4,459 metres. The purpose of the new 34/7-E-4 AH well was to test for oil in the Middle Jurassic reservoir rocks of the Rannoch Formation.

A Transocean Norge semi-submersible platform made it possible to dig in 283 kilometers of water. As a result, the reservoir will be temporarily closed as the oil meets the water at a depth of 2,479 meters.

oil norway

A discovery with great potential for the oil industry

According to Oil field technology, this minor discovery has promising commercial potential. In fact, this 20-meter-long oil column in the Rannoch formation has 18 meters of good-quality sandstone reservoir. The Norwegian Petroleum Directorate reported on the importance of this well in NS Energy magazine.

“Preliminary calculation of the size of the discovery is between 0.9 and 1.5 million standard cubic metres (Sm3) of recoverable oil.”

In addition, he points out that this well will be linked to the Vigdis field, and the material could be recovered using the Vigdis facilities already in place. The company has already proceeded with data collection and sampling. However, the well has not yet been tested in formation. This new deposit is good news for the oil industry, which has been hit by a drop in production since the early 2000s, and the covid-19 pandemic.

oil

The oil industry is at the heart of the ecological debate

However, the exploitation of fossil fuels is at the heart of environmental issues in the face of global warming. This is notably the case in Norway, where the green transition has been accelerated, with the government funding actions to comply with the Paris Agreement. The latter, however, is one of the European countries that produces the most oil and emits the most greenhouse gases. Between an ecological approach and an oil production permit, Oslo offers us an ambivalence.

Equinor Energy multiplies its successes

The company continues to flourish in 2020. Earlier this year, the company had already discovered a gas and condensate deposit in the Wild 30 / 2-5 S well located in production license 878 in the Norwegian North Sea. According to estimates by the Norwegian Gas Directorate, the reserves represent between three and ten million standard cubic meters of recoverable oil equivalent. That’s between 19 and 63 million barrels of oil equivalent.

Norway at the heart of offshore drilling

The Transocean Norge drilling rig will then continue its journey to bring up a new development well on the Visund South field for Equinor Energy. The North Sea and Norway are therefore currently at the heart of the Norwegian oil giant’s energy challenges. In 2018, Norwegian Prime Minister Erna Solberg declared: “The person who will turn out the lights on the Norwegian continental shelf is not yet born”. This sector, which accounts for 20% of the country’s investments, 30% of exports and 200,000 jobs, is a pillar for the country.

Unprofitable wells in Australia and the Arctic for the oil industry

This well is an advance for the company, which at the start of 2020 had failed to detect hydrocarbons in a promising Arctic zone. In addition, the oil company renounced its right to drill in the Great Australian Bight. Indeed, the wells in this area are not profitable, said Equinor director Jone Stangeland. This news delighted Australian Greens Senator Sarah Hanson-Young. The giant therefore prefers to turn to the more profitable and promising North Sea.

Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.
Three months after starting production, Norway’s Johan Castberg oil field, located in the Barents Sea, reaches its full capacity of 220,000 barrels per day, significantly increasing energy supplies to Europe.
New U.S. estimates reveal nearly 29 billion barrels of oil and 392 Tcf of technically recoverable natural gas on federal lands, marking significant progress since the last assessment in 1998.
The United Kingdom tightens sanctions against Russia's oil sector by targeting twenty tankers operating in the "shadow fleet" and Rosneft Marine, amid rising crude prices exceeding the G7-imposed price cap.
French manufacturer Vallourec will supply Qatar with premium OCTG tubes in a contract worth an estimated $50 million, supporting the planned expansion of oil and gas operations by 2030.
SBM Offshore has secured an operations and maintenance contract from TotalEnergies for the FPSO GranMorgu unit, the first such project in Suriname, covering operational preparation and post-production maintenance for at least two years.