[Graeme]

I found this page which explains recent advances in petroleum technologies:

$this->bbcode_second_pass_quote('', 'I')t's definitely not your father's oil and gas industry. Yesterday just about everything from drilling to production was done manually, with paper records kept in file drawers or boxes in the archives. Today, computer simulations help engineers test various scenarios, helping them plan what to do to reduce technical and financial risks. Knowledge and data are stored in electronic repositories to leverage field experience from all over the globe. Even while drilling offshore in record water depths, sensors can send data via satellite to the office, where experts can make last-minute decisions to steer the well toward the target formation.
So what are some of these whiz-bang technologies that the upstream petroleum industry has adopted or adapted for use in the oil patch? Here are my Top Ten:

1. 3D Seismic Interpretation – Geoscientists create models of the earth’s rock formations to identify potential oil and gas deposits. Some 3D visualization caves project a 180-degree view on huge Imax screens so people can virtually step into the subsurface to explore.
2. Measurement & Logging While Drilling – Rather than hauling up a drill string that's three miles long then sending down wireline logging tools, MWD and LWD tools are run right behind the drill bit, sending data in real time to the driller's console to enable prompt decision-making.
3. Plant Design Software – Computer-aided drafting (CAD) software has come a long way from merely producing digital drawings. Today it is used for simulating operations, training, optimizing production yields and maintenance scheduling.
4. Reservoir Modeling & Simulation – Computer power has grown so rapidly that entire basins can be modeled. In addition, numerous reservoir simulation iterations can be run to determine the statistical probability of each scenario happening.
5. SCADA & RFID – Supervisory control and data acquisition allow remote monitoring of production facilities, and radio frequency identification tags (similar to EZ Tags) are used to keep track of high-cost equipment shipments to and from the facility.
6. Satellites & Internet – High-speed data transfer from the field to the office leverages the expertise of a few gurus to numerous oilfields worldwide, saving a lot of travel costs. Employees can even continue working at home or while out of town using Web-enabled applications.
7. Knowledge Management & Collaboration – Knowledge repositories can be searched to find solutions to common problems and share best practices. With partners and suppliers in diverse locations, online collaboration tools enable concurrent engineering on huge capital projects.
8. E-procurement & Online Auctions – Ordering equipment and supplies, technical services like well workovers or fracturing jobs, or even purchasing oil and gas properties can all be done via online bidding.
9. ERP Systems & Back Office Applications – Enterprise Resource Planning systems like SAP help the business office keep track of dollars, barrels and people, rolling up all the numbers for corporate reports and compliance audits.
10. Applications & Systems Integration – Tying all these technologies together into a cohesive workflow remains the biggest challenge. Standards bodies such as POSC and PIDX involve representatives from the energy companies, the service companies, and the technology companies all working together toward interoperability.

The upstream oil and gas industry has spent a huge amount of money on these new technologies. In 2005 alone, the U.S. energy industry is expected to spend more than $22 billion on information technologies, according to Energy Insights analysts. According to the U.S. Department of Energy's Energy Information Administration, success rates for "wildcat" or exploratory wells has doubled from 21% to 42% in the last 30 years, with overall well successes nearing 85% (Monthly Energy Review, August 2004). Secondly, lost-time injuries have declined steadily in the past 10 years from four per million hours worked to just one. Thirdly, oil and gas companies have eliminated 275 billion cubic feet of methane emissions since 1993, generating more revenue by selling these hydrocarbons and making our air cleaner to breathe (EPA Gas Star Program).

Jeanne M. Perdue is Editor of Upstream CIO newsletter, published by Zeus Development Corp. The Society of Petroleum Engineers has selected her as a Distinguished Lecturer for 2005-06

[gego]

Hi tech really means using a better mousetrap to extract oil. This really does not change the amout of oil that is in the ground. It just means that we can extract it faster, and perhaps extract more than we could have low tech.

More wishful thinking on the part of those who have a bad survival plan, me thinks.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'H')i tech really means using a better mousetrap to extract oil. This really does not change the amout of oil that is in the ground. It just means that we can extract it faster, and perhaps extract more than we could have low tech.

[NeoPeasant]

So does all this technology mean that the discovery curve will soon rise again to the levels of the 1950's and 1960's?
The scary thing is that they are bringing all this new technology to bear and the discovery levels are still dropping off to nothing.

[MicroHydro]

$this->bbcode_second_pass_quote('NeoPeasant', 'S')o does all this technology mean that the discovery curve will soon rise again to the levels of the 1950's and 1960's?
The scary thing is that they are bringing all this new technology to bear and the discovery levels are still dropping off to nothing.

[rockdoc123]

actually all the technology listed has been around for at least ten years and been widely employed. Doubt there will be a surge in discovery rate ever again.

[cube]

A classic example of Tartar's (sp?) Theory of diminishing returns on increasing complexity.

World oil discoveries peaked sometime in the 1960's but we have access to technologies today that even sci fi writers back then didn't even dream up with and yet we're discovering less oil with more sophisticated technology. So much for the argument of technology will save us.