New technology will cut exploration costs by 40%

The oil and gas industry is on the verge of technological breakthroughs that could help cut its costs by nearly 40% over the next three years, a conference in Aberdeen will hear next week. The UK sector of the North Sea faces severe cutbacks in investment and jobs due to rock-bottom oil prices. But, says […]

The oil and gas industry is on the verge of technological breakthroughs that could help cut its costs by nearly 40% over the next three years, a conference in Aberdeen will hear next week.

The UK sector of the North Sea faces severe cutbacks in investment and jobs due to rock-bottom oil prices. But, says the Crine Network the cross-industry organisation set up to reduce costs emerging technologies and other initiatives could reduce the average cost of finding and producing a barrel of oil from $13 to $8 by 2002.

The technologies to be presented at the Crine Network’s annual conference on March 10 include coil tubing drilling, in which coiled tubing fed off a reel is replacing the traditional drilling mast, and sectional drill tubes. Two versions will be described seabed micro-coil drilling and larger-diameter electric-coil drilling from platforms.

Other cost cutting technologies being presented include downhole seismic systems for monitoring and managing reservoirs.