[nth]

$this->bbcode_second_pass_quote('Russian_Cowboy', '
')
This is already being done. Russian oil companies have state-of-the-art technologies. They will also be pumping CO2 into the large depleted oilfields. As far as poor reservoir management practices are concerned, you are right, unfortunately.

[marek]

I am writing a paper on how the nationalization of Russia's oil industry might reduce oil extraction below the idealized multi-cycle Hubbert curve. I was wondering if anyone could point me to articles about the new Russian subsoil law. Thanks in advance !!!!!!!

[shakespear1]

I just finished working on a project for a major Russian oil company ( not Yukos ) and can say that THEY DID NOT have good data.

Now they are ( in the last 10 yrs ) modernizing and bringing in Western Technology to RE-EVALUATE what they already have done and what else may be doable. But I have seen examples where the old seismic for example took them to the weeds and they needed to consider doing more seismic. Log data quality not reliable to answer tough questions ( better logs available but Western Technology would be needed ) , welltest interpretation, etc.

Then there are still old concepts ingrained in how things should be done ( how we did things 30 yrs ago ). That is why the major Russian oil companies are bringing in Western Service companies to upgrade everything ( Workflow ).

YUKOS was the furthest in modernizing. But Khodorkovski was a crook and played his hand badly and lost. I do not feel sorry for him.

[Russian_Cowboy]

$this->bbcode_second_pass_quote('nth', '')$this->bbcode_second_pass_quote('Russian_Cowboy', '
')
This is already being done. Russian oil companies have state-of-the-art technologies. They will also be pumping CO2 into the large depleted oilfields. As far as poor reservoir management practices are concerned, you are right, unfortunately.

[nth]

$this->bbcode_second_pass_quote('Russian_Cowboy', '
')You are plain wrong. Here is an example. Deep-sea drilling is of no use in Russia where no deep sea oilfields are known. TNK-BP was indeed incleasing its production until the end of 2004 at about the same rate as most other major Russian oil companies were, but after that the production by BP has been stagnating.

[nth]

$this->bbcode_second_pass_quote('Russian_Cowboy', '
')This is already being done. Russian oil companies have state-of-the-art technologies. They will also be pumping CO2 into the large depleted oilfields. As far as poor reservoir management practices are concerned, you are right, unfortunately.

[Russian_Cowboy]

$this->bbcode_second_pass_quote('nth', '')$this->bbcode_second_pass_quote('Russian_Cowboy', '
')You are plain wrong. Here is an example. Deep-sea drilling is of no use in Russia where no deep sea oilfields are known. TNK-BP was indeed incleasing its production until the end of 2004 at about the same rate as most other major Russian oil companies were, but after that the production by BP has been stagnating.

[shakespear1]

I have limited experience in Russia ( 6 yrs ) so can not generalize too much.

The fields that I saw were mismanaged. What do I mean? They made top of the structure maps. Drilled to find OWC and then would proceed to drill on a basic pattern 300m offset for example. They would put dots on a map and drill there. Where I worked THEY NEVER SIMULATED fields.

Their logs were OK to show pay but not for detailed petrophysics ( not modern analysis).

Their drilling departments worked autonomously and had set targets for metersto be drilled per year. THUS, they stuck wells where they probable should not have been. Just based on that map with the dots.

They would place wells on Injection when oil production woud go down, but the conscept of balancing injection patterns was not practiced. I saw committee meeting where this was discussed and that was it. No calcualtions. Just a committee decision of what to do.

To do this right you should build a model. Even a simple one would allow you to make decisions rationally amd perhaps better understand what is going on in the field. NO. They did not use this technology until they brought Western Companies in.

Today this is changing but then MAJORITY of fields were done this way.

Horizontal drilling. They invented it but they did not perfect it. Their old rigs would not be able to drill horizontals further than 200-300 m. To make matters worst, if you do not have a proper mud system and geosteering you are going to drill God knows what and the rate that well will get may be no better than a vertical well. Their mud pits were just holes in the ground so contamination of drilling mud was assured to screw the wells. Thus you would not see many hrizontals in their old fields. Besides Drilling dept. knew that it was safer to drill vertical and assure them better bonuses. Big Party for Christmas

For the Major Russian company I worked for WE brought in the drilling and reservoir expertise. They learned, now they are doing it themselves. To some extent. Hoever the top and middle management is ossified in most of these companies and is just waking up. They are greedy and do not want to pay western prices. END result is that they get good ol Russian results unless they openup. But once you spoil a field it take a hell of a lot of money to undo it IF YOU EVER can undo the damage.

Why was YUKOS so successful? Because they did simple things that had been done in the West for YEARS!!!

Do detailed OOIP, study production patterns in the field, estimate remaining production around a well, do NODAL , pull junk out of well, do short fracs to get through damage ( due to SUPER POOR drilling and workover fluid systems used by Russians in the past and present) AND BANGO SUPER WELL. This was something we learned at the University when I was getting my MS. After that everyone in Western Siberia wanted to do fracs and copy.

I am sure there were exception but something gives me the feeling that oil business was done in most of Russia as I describe above.

[Russian_Cowboy]

$this->bbcode_second_pass_quote('shakespear1', 'I') have limited experience in Russia ( 6 yrs ) so can not generalize too much.

[shakespear1]

Did you know that in the SU times the young men would go to do military service and stay in there not for 2 yrs but 5. When a Russian told me this I nearly fell off my chair. Thus this military behavior is INGRAINED into all aspects of society!!!!

So when you go to a Russian oil company, it is run as though you were in the Army. I saw it and experienced it myself . I did not like it as innovation is completely stifled. The attitude was DON'T GET OUT OF LINE.

Even the Managing Director was called the GENERAL!!!!

How it was during SU is no different I suspect from how it is now.

[Russian_Cowboy]

$this->bbcode_second_pass_quote('shakespear1', 'D')id you know that in the SU times the young men would go to do military service and stay in there not for 2 yrs but 5.

[shakespear1]

Cowboy

I suspect my friend in Russia was exaggerating as at that time he was looking for money to stay out of the Army I was not surprised as I found out that life in the Army can be hell.

Once on TV ( In St. Petersburg) in 1992 I saw a report about some kids stationed near the Polar Circle that were near starvation and the family had to send food. No idea if this was true or the Army was trying to do things to have a bigger budget.

[nth]

Russian_Cowboy,

Yes, I misunderstood you. I thought you were claiming Russia was on par with the best US oil firms. I didn't know you meant that Russia bought some state of the art equipment.

I just want to point out that US prevents the exports of top end oil related equipments. They are on list of items that need to be cleared by government agencies and so Russia, China, etc don't have them. Also, many advance equipment are owned by oil service firms and these firms don't sell equipment. You have to contract with them. Yes, Russia does contract with some of them.

I just thought it was misleading to state that Russian oil firms are state of the art when they can only achieve that with US help.

As for comparing oil field productions, I just know BP did implement changes and got better results. Maybe Russians will be able to do this by themselves. I don't know. Nothing more here.

As for deep sea, I was using a different criteria. Nothing more here.

[Russian_Cowboy]

$this->bbcode_second_pass_quote('shakespear1', '
')Cowboy

I suspect my friend in Russia was exaggerating as at that time he was looking for money to stay out of the Army I was not surprised as I found out that life in the Army can be hell.

[shakespear1]

Cowboy

Wow, that is tough what you describe.

I like Russia, but not dealing with people on an official level. That was no fun. Russia still has that "natural" look, however the "heavy" history has really dragged your country down in terms of development. But maybe that is a plus. Now we have a gene pool of individuals able to deal with severe shortages. Not many of these in most Western countries

I found Russians ( on average ) most resourceful and just the type of people that could deal with PO. Plus there is a lot of brain power which unfortuantly is either trying to leave or is stifled by the system.

But I think eventually all people on this planet will need to work together to solve future problems. So I hope.

[nth]

$this->bbcode_second_pass_quote('Russian_Cowboy', '
')
I am agree with your statement about the oil service firms, but I find it hard to believe that the US government can control sales of top-end equipment to Russian companies that can easily buy it from a third party.

[shakespear1]

Patents, R&D and manufacturing base of the oil industry got its strong start in the US. Consequently a lot of this equipment is US made.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'I') just want to point out that US prevents the exports of top end oil related equipments. They are on list of items that need to be cleared by government agencies and so Russia, China, etc don't have them. Also, many advance equipment are owned by oil service firms and these firms don't sell equipment.

[frankthetank]

link

Demand destruction? Global economic meltdown?

Oil goes to $40 and i'm buying a H2! (J/K)

[FrankRichards]

What kind of oil? I think it's low anyway, but if he's talking Siberian heavy sour delivered by (high cost) railroad rather than pipeline, $40 would still imply WTI at $50 or so.