upstream_101_021710_MASTER.pdf - Upstream 101 Energy Industry Guide Table of Contents How to use this guide 4 Chapter 1 Introduction 8 Industry players

upstream_101_021710_MASTER.pdf - Upstream 101 Energy...

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Upstream 101 Energy Industry Guide
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2 Copyright © 2010 Accenture. All Rights Reserved. Table of Contents How to use this guide ............................................................................................................................. 4 Chapter 1: Introduction .......................................................................................................................... 8 Industry players ................................................................................................................................... 10 Industry dynamics ............................................................................................................................... 11 Production and consumption ............................................................................................................... 12 End uses ............................................................................................................................................. 15 Life cycle of a field ............................................................................................................................... 17 Chapter 2: Exploration ......................................................................................................................... 18 Introduction ......................................................................................................................................... 18 Hydrocarbon formation ........................................................................................................................ 20 Licensing ............................................................................................................................................. 23 Geological and geophysical research ................................................................................................. 23 Exploration drilling ............................................................................................................................... 24 Chapter 3: Appraisal ............................................................................................................................. 25 Introduction ......................................................................................................................................... 23 Appraisal wells .................................................................................................................................... 28 Reservoir model .................................................................................................................................. 28 Reserve evaluation ............................................................................................................................. 28 Decision point ...................................................................................................................................... 30 Chapter 4: Development ...................................................................................................................... 32 Introduction ......................................................................................................................................... 32 Field development plan ....................................................................................................................... 34 Drilling ................................................................................................................................................. 34 Equipment ........................................................................................................................................... 37 Unconventional oil ............................................................................................................................... 40 Industry metrics ................................................................................................................................... 41 Chapter 5: Production .......................................................................................................................... 44 Introduction ......................................................................................................................................... 44 Production process and facilities ......................................................................................................... 46 Basin maturity ..................................................................................................................................... 46 Recovery techniques ........................................................................................................................... 47 Workovers ........................................................................................................................................... 47 Chapter 6: Abandonment ..................................................................................................................... 48 Introduction ......................................................................................................................................... 48 Abandonment decisions ...................................................................................................................... 50 Decommissioning timescale ................................................................................................................ 51 Legal requirements ............................................................................................................................. 51 Decommissioning process .................................................................................................................. 52 Secondary use .................................................................................................................................... 52 Development team .............................................................................................................................. 53
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Copyright © 2010 Accenture. All Rights Reserved. 3
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4 Copyright © 2010 Accenture. All Rights Reserved. How to use this guide
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Copyright © 2010 Accenture. All Rights Reserved. 5 Whether it’s in transportation, economics or politics, oil touches almost every aspect of our lives. The topics of energy security, fossil fuels’ contribution to climate change, the impact of geopolitical events on oil supply, the price of a barrel and the oil companies’ profits are never far from the news. What drives great companies? This guide is designed to provide an overview of upstream oil for those new to the industry. It is a reference guide and starting point for obtaining further knowledge on specific areas of the value chain. Upstream, also known as exploration and production (E&P), refers to finding and extracting hydrocarbon resources, as well as the development and abandonment of the facilities. To understand where the upstream sits in the wider oil industry value chain, see Figure 1. This encompasses all stages of the process, from E&P of oil at wells through to the end uses of oil.
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6 Copyright © 2010 Accenture. All Rights Reserved. Figure 1. Oil industry value chain. The upstream can be described as a value chain with five different segments. Each segment is described in one of the following chapters: Exploration Appraisal Development Production Abandonment Figure 2. Upstream value chain. Accenture has developed a High Performance Process Excellence (HPPE) model for the energy industry (see Figure 3). The HPPE model covers all areas of the energy industry.
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Copyright © 2010 Accenture. All Rights Reserved. 7 Figure 3. Accenture’s High Performance Process Excellence model for energy. Further information about the HPPE model, Gas 101, Refined 101, energy industry trends, recent client engagement and key contacts can be found within Accenture’s Knowledge Exchange.
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