Marathon Oil Company's Succes with RFID

Marathon Oil Company of Houston, Texas has used RFID tags in its operations. Instead of using traditional mechanical systems, hydraulic pressure and fluid pulses, a downhole tool is set up with an RFID reader and the tool is activated when RFID tags are read along the length of drill pipe. Marathon Oil has recognized various benefits from the use of RFID, the most important initial goals is reducing costs and rig time, Marathon Oil has also estimated that by implementing such an RFID-powered system, they could save at least $17 million in annual costs.  While cost savings are a great achievement, Marathon Oil also pointed out that this solution could result in improvements to operational safety.
The above mentioned facts are so important after the Deepwater Horizon disaster, the use of RFID for downhole drilling and many other aspects of natural resource exploration seem to be revolutionary.

Source: http://rfid.thingmagic.com/rfid-blog/?month=10&year=2010

Blowout Preventer #9

During the drilling of areas where are oil, water, or gas, there is a possibility this pressure may escape out through the well.  When this happens, it can blow out.
To control these formations of the pressure, a large underwater control valve called a Blowout Preventer (BOP) is initiated on top of the wellhead.  This is why its very important to have run the two sections of casing and properly cemented them in place. If not for the blow out preventer, oil and gas would escape directly to the sea causing tremendous damage to the environment.  Ensuring the BOPs are properly maintained and tested should be one of the highest priorities of the drilling companies. 

It is crucial to prevent the blow-out not only it damages the drilling rig, but it may cause enormous damages for both the employees and the environment as well. Many oil rig workers have lost their lives to explosions and fires when uncontrolled gases from blow-out. Drilling fluid is twice as heavy as sea water. This is helpful during the drilling, because it’s weight creates enough pressure to keep any pressure in the oil or gas formation from escaping back up through the well.
On the other hand, if the drilling fluid you are drilling with is too heavy, you run the risk of breaking or cracking the well.  When this happens, your drilling fluid begins leaking out into the underground formation.  This is also very bad, because without being able to circulate the mud back up through the marine riser, you will be unable to drill any deeper.
According to the BOP, tremendous problems can be avoided.

Source: http://www.treesfullofmoney.com/?p=1610

Drilling Process#8

The drilling bit cutting through the earth is a little crude. The drill bit is connected to the drill pipe which runs all the way back to the surface of the water to the drill ship. As the bit is rotated in the well bore (the hole that is cut into the ground), high pressure drilling fluids called “mud” is pumped down the center of the drill pipe and out. The drilling fluid has a red colour in the drawing below. As drill gets lower the drilling fluid carries chipped rock pieces (yellow) out of the hole to prevent them from building up on the bottom of the well. Drilling fluid, or “mud” beside clearing out rock bits from around the bit has other important function. It keeps the bit cool as it turn through layer after layer of hard rock formations.  Furthermore, it keeps the bit and the drill pipe lubricated to help keep it from getting stuck in the ground.  The mud helps prevent the well from caving in or taking a kick.

Source: http://www.treesfullofmoney.com/?p=1610

Drilling Process #7

The drilling process actually begins with a spudding which means that drilling oil wells in deep water (>1000′), this involves forcing 300-400 feet of 36″ diameter metal tubing, called casing. The 36″ casing is sunk to the seafloor by “drill pipe”.  Each section of drill pipe is 30-45 feet long and about 6″ in diameter.  The drill pipe is connected end to end and gradually lowered down into the well and back up to the surface as needed.

Each section of drill pipe is called a “joint“, and when two or more “joints” connected and “racked back” in the derrick they are then called a “stand“.

Casing getting deeper and deeper into the ground, some rigs use enormous hammers to pound the casing into the ground to the desired depth. When the 36″ casing is set to the correct depth, the drill pipe is pulled from it and it will be put back to the surface.

 Source: http://www.treesfullofmoney.com/?p=1610

Drilling Process #6

Drilling begins with exploring the oil under the ocean. The survey boat fires sounds waves which reflect off the various layers of the ground underneath the sea bed and echo back to the survey boat.  The survey boat's high tech computers are able to turn these reflected sound waves into an image showing the various features of the earth directly below.

Geologists according to the waves identify oil by looking at these images to see if there are any areas where oil might be present.  Through the recent technology development the survey boats are able to create 3-D images of the ground which helps for the geologists to identify the oil deposits.

Source: http://www.treesfullofmoney.com/?p=1610

RFID against the Theft?!

One of the biggest  and recent problems in Nigerian energy sector is the  high rate of oil thefts. This violence, fights against the multinational companies which have started  their business in the country. Estimates of ultimate recoverable oil reserves in the deepwater are high, as well as the potential for large and giant discoveries. Chevron's massive Agbami Field, for example, which went on stream in July 2009, covers 182 km² and contains recoverable reserves of approximately 900 MMbo.

The first field to go on production in water depths over 3,300 ft was Shell's Bonga Field, in 2005, which was discovered in the mid 1990's. The field, operated by Shell, contains reserves of 6Bboe per day. During the past few years the exploration has been moving into even deeper waters, with recent wells in depths 9,000ft. However, move to offshore did not remove oil operations from the sphere of the thefts, the Bonga complex, was attacked by the Movement of the Emancipation of the Nigerian Delta (MEND. 

Source: http://www.geoexpro.com/country_profile/nigeria/

Nigeria a new target for RFID

Nigeria, in Western Africa is lucky and unlucky at the same time. The country is rich in its natural resources, especially oil and gas, however, it is poor concerning the environmental effects of the drilling and the low profit of the business. Nigeria suffers from the environmental perils of oil extraction. Villagers draw their water directly from the same rivers and streams that become catch basins for oil spills.  Between 1989 and 2000, more than 536,000 barrels of oil were spilled; only 23,000 barrels were recovered. Worse case that the land and river restoration are rare. Furthermore, gas flaring is the cheapest way to eliminate natural gas which is a byproduct of oil extraction.  These flares contribute to climate change and cause of acid rain in the region.

According to the Ango-Dutch oil group, Schell approximately 100,000 barrels of crude oil are being stolen or smuggled from Nigeria every day,counting 5 per cent of national production. The theft of oil in Nigeria, Africa’s largest oil-producing country, may have peaked at more barrels. Today’s theft price is estimated at $40 for a barrel which equates to between $300 million and $1.6 billion a year. Nigeria has proven reserves of 36 billion barrels – the seventh highest in the world – but the industry has been wracked by violence, corruption and crime, particularly across the volatile Niger Delta region. To monitor and stop these troubles RFID technology would be an useful tool.

The process of stealing crude oil involves boring holes in the thousands of miles of pipelines that situated in the Delta and inserting valves. To add the above mentioned practice is highly risky that often results in explosions and deaths. The curde oil is also stolen by organised criminals who steal directly from the wellhead. Stolen Nigerian crude is usually exported by barge for refining in other parts of West Africa. There is also evidence that it is shipped as far afield as Brazil and Eastern Europe.

Source: http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5776150.ece