ambitions for recovery

90 Pages·2015·31.02 MB·English

ADJACENT
OIL&GAS
ISSN 2397-2041
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November2015
AMBITIONS
FOR RECOVERY
North Sea oil and gas has plenty of life
left, says Andrea Leadsom MP
ALSO INSIDE THIS ISSUE…
Gas compressor of choice Pipeline as pivot? Beyond Macondo
Investing for the future with innovative Professor Keun-Wook Paik puts Collaboration and a culture shift will lift
design and manufacturing Sino-Russian cooperation in the spotlight safety levels, according to Elisabeth Tørstad
Supported by
There’s A Reason Why It’s Called A Compressor Package

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balance. News about developments in one
region of the world is transmitted almost
R
instantaneously everywhere, and is processed
swiftly along financial exchanges whose
O
activities are transcontinental. All of this
results in an industry that morphs and
W
evolves continuously, granting us oil and
gas markets periodically transformed.
E
How are we to make sense of the multiple
R and complex links behind all these “inter” and
“trans” concepts so characteristic of the oil
O and gas industry? We usually resort to obser-
vation,description, analyses, and explanation
F to sort out how the causal chains binding
market actors work together. This is as it
should be, but inevitably we must resort
Dr Aldo Flores-Quiroga
to dialogue as well. Dialogue to exchange
Secretary General
perspectives on what we observe, to com-
International Energy Forum pare the nature of what we aim to describe,
to highlight implicit assumptions and logical
links in what we analyse and explain. And
I
n the world of oil and gas the prefix when action is called for, as when investment
“inter” plays a prominent role. Producers decisions are made or policies implemented,
and consumers are interdependent. we benefit from dialogue that serves to
Oil and gas markets are interconnected. identify opportunities for progress, to clarify
Trade is international and, in the case of gas, differences, to set an agenda for the future.
increasingly intercontinental, as it has been
for oil for a long time. Physical and financial The International Energy Forum (IEF)
markets interact ever more closely, just as strives to promote global energy security
upstream and downstream investments are through dialogue. It provides a neutral
interrelated. We say that producers and platform that promotes an informed, open,
consumers are interlinked and their fates frank, respectful, and constructive exchange
intertwined. It is no wonder that few indus- of views among the ministers and experts of
tries command such a level of interest and energy producing and consuming countries.
are as interesting as the oil and gas sector! Through their closer engagement, it seeks to
improve their understanding of their interde-
Something similar could be said for the prefix pendence,interconnection, interrelatedness,
“trans”. Oil and gas companies, together with and all of the “inters” and “trans” that consti-
their global trade and investment networks, tute the very essence of the oil and gas world.
are transnational. As projects become more
complex, they are increasingly requiring I would like to welcome the publication of
trans-disciplinary expertise, one that Adjacent Oil & Gas at a time when we require
integrates fields of knowledge into new greater understanding of this increasingly
configurations more attuned to new realities. complex and, yes, interdependent, industry.
Investment decisions made today transcend May it succeed in its mission, and may it
into the future, often with unintended provide insights that contribute to the
consequences for the supply-demand global energy conversation. ■(cid:0)
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E Welcome to the inaugural edition of This edition looks forward to what is set to
Adjacent Oil & Gas, coming at a be the biggest iteration yet of the Abu Dhabi
M
turbulent time for the industry as International Petroleum Exhibition and Con-
natural gas and crude oil prices remain ference, taking place between 9-12 Novem-
stubbornly low, and jobs are lost as willing- ber. See our preview for updates on some of
O
ness to invest in new projects and expansion the main sponsors of this year’s event.
C falters. Fresh concerns are arising over a
growing skills gap, just when the sector All eyes will then turn to the UN’s Paris
L seems to have come to terms with the Climate Change Conference (COP21) amidst
effects of the Big Crew Change. hopes of an effective new agreement.
E
Following damaging allegations regarding
W There may be some reasons for optimism, climate denial in the oil and gas sector, the
however. The Department of Energy and 10 CEOs involved in the Oil and Gas Climate
Climate Change in the UK is keen to Initiative have already declared their support
maximise North Sea recovery, as Minister for the ambition of a ‘2ºC future’. Here we
of State Andrea Leadsom outlines, and consider just some of the ways the industry
megascale infrastructure projects continue is responding to the growing pressure to
apace across Russia as well as elsewhere in find environmentally sustainable solutions
the Commonwealth of Independent States. to supply global energy demand.
In this edition, we take a closer look at Sino-
Russian cooperation – particularly pertinent Enjoy the first edition, and do get in touch if
in light of the current geopolitical climate – you are interested in making a contribution
and the resurgence of the industry in Iraq. to the February issue. ■
Following the announcement earlier in the
year of the final settlement reached by
BP, CEO of Oil & Gas at DNV-GL Elisabeth
Tørstad considers the lessons learned from
the Deepwater Horizon incident, and
Managing Director of Standards Norway,
Jacob Mehus, explains the necessity of Katy Edgington
strict and ambitious standards for a safe Editor
and effective industry. @Adjacent_OilGas
Production Coordinator Adjacent Digital Politics Ltd and its supplierscollect and
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Nick Wilde
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S5
1 47| Data security and electronic recycling
0
2 An effective waste management strategy takes
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b
Nm disposition must considerdata security
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1 |
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Te
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Ns 29 |From the digital oilfield to big
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data analytics
Chief Technical Advisor for Halliburton Production
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Enhancement Technology, Harold G Walters,
identifies the advantages to the oil and gas
C industry of a trend towards big data analytics
POLICY AND MARKETS 38| AIRTEC 2015: The flight of
innovative thinking
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The 10th International Aerospace Supply Fair holds
12| Maintaining momentum in the North Sea the promise of innovation, and not just for the
There is plenty of life left in the North Sea oil and gas aerospace industry
industry, insists UK Minister of State for Energy,
Andrea Leadsom MP
14| An evolving new world order for oil CYBER SECURITY
John Auers of Turner, Mason & Company reflects on a \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
turbulent time for crude markets and the possibility
of finding a balanced pricing model 40| All hazards: Protecting US energy
infrastructure
Fowad Muneer and David Howard, from the United
SPECIAL FEATURE States’ Office of Electricity Delivery and Energy
Reliability, explain the efforts being made to protect
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the nation’s energy infrastructure from manmade
16| ADIPEC 2015 PREVIEW and natural hazards
As ADIPEC 2015 prepares to open its doors to a
record-breaking number of exhibitors and delegates,
Adjacent Oil & Gas gets the inside track on the
43| Cyber compliance is not enough
conference action
Forget the myth of unbreakable defences and
concentrate on crisis management when it comes to
cyber security, urges Bronzeye IBRM Chief Executive
TECHNOLOGY AND INNOVATION
Andrew Taylor
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32| Model based drilling software
45| Cyber Security Top 10
Software can act as a key enabler to reduce drilling
costs and to increase oil recovery, according to IRIS Elaine Munro, BSI’s Head of Portfolio Management
research scientist Jan Einar Gravdal outlines the cyber security must-dos for business
success
35| Valve technology: Driving safety
and efficiency 49| Top of the agenda: IT asset disposal
Adjacent Oil & Gas takes a look at the state of valve Data security and waste management must go
manufacturing and the latest technological advances hand in hand when it comes to IT asset disposal, says
in this arena Dr Anand Narasimhan of Sims Recycling Solutions
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Engage
with us
62 |Safety & Risk Management:
Beyond Macondo
Industry leaders could lift safety performance to
new levels with effective collaboration, according to
DNV GL – Oil & Gas CEO Elisabeth Tørstad
51| Engineering a cleaner future for 71| Understanding methane emissions
UK fossil fuels from the natural gas industry
Leadership and clear decisions are needed to drive Dr Paul Balcombe, from the Sustainable Gas Institute
cleaner energy infrastructure forward, according to the (SGI) at Imperial College London, discusses the
Institution of Mechanical Engineers’ Dr Jenifer Baxter challenges to understanding the climate impact of
emissions from natural gas production
ENGINEERING TRAINING AND RECRUITMENT
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55| Powering production with more efficient 73| Feeding the energy people pipeline
generator sets Recruitment of suitably skilled workers is a perennial
The onsite power generation needs of the oil and gas problem in the energy sector, as the Energy Institute’s
industry require more reliable, fuel efficient solutions Skills and Capability Director Sarah Beacock highlights
than ever
77| The challenge of recruiting more women
58| Sour oil and gas: Opportunities and risks Recently-installed IET President Naomi Climer has
As the ‘easy oil’ runs out and demand for natural gas made it her mission to improve recruitment of women
grows, sour looks to become the new sweet in the into engineering and technology roles, with oil and gas
world of hydrocarbons just one area under the spotlight
PROJECT FOCUS: POWER OF SIBERIA
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HEALTH, SAFETY AND ENVIRONMENT
80| Power of Siberia: Pipeline as pivot?
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Professor Keun-Wook Paik, Associate Fellow at
68| NORSOK: Keeping Norway competitive Chatham House, gives Editor Katy Edgington an
Jacob Mehus, Managing Director of Standards insight into Sino-Russian oil and gas cooperation
Norway, talks to Adjacent Oil & Gas about the
importance of NORSOK standards to the nation’s
petroleum industry COUNTRY FOCUS: IRAQ
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70| Demanding standards, delivering quality 85| Bringing Iraq back online
Fine Tubes Business Development Manager for Oil & Carl Larry, Director of Oil & Gas at Frost & Sullivan,
Gas Nicholas Head describes the value of NORSOK gives his perspective on the resurgence of the INDEX 
standards for businesses industry in Iraq