Recently, oil and gas professionals, government officials and leaders of major oil companies participated at Oil Gas Denmark’s Oil & Gas Summit 2015. Founder and CEO of Welltec, Jørgen Hallundbæk, participated in a panel debate where he emphasized that the technology to maximize oil recovery is here and that opportunities are prolific.
‘Here in the North Sea, the upstream industry faces some big challenges. None are more prevalent than having to adjust from a US$100/barrel world to the current price environment. So is there any good news coming from the North Sea?’
This was the discussion invitation and outset for yesterday’s summit, which sought to examine the challenges and possibilities in the current climate. In recent years a decline in production, ageing facilities and increasing operational costs have been the reality for most of the oil and gas sector in the North Sea, causing serious market adjustments.
But despite the current downturn and the various challenges facing the sector which have forced companies across the globe to reduce costs to levels that match the current situation, Jørgen Hallundbæk highlighted that the technology to increase recovery rates is available. Operators can work with reductions in CAPEX to their budgets and still produce oil in a safe and cost effective manner. They just need to be more receptive to some of the available technology around them.
“Some operators have taken this downturn as an opportunity to open their doors and question if there are ways they can change their business models and their approaches to reservoir drainage, resulting in a collaborative environment with us as a service provider. Today with a lot of companies being cash-flow negative, they are truly willing to listen to something they have not done before”, said Jørgen Hallundbæk.
It is widely known that Norway has high recovery rates and is skilled at draining their reservoirs. But why has Norway been so much better at applying new technology? inquired the moderator.
“At the time we came about in Norway, they were facing a low oil price, mature assets and declining oil production. Something had to be done. They had infrastructure in place which they could exploit if they could reach further out, hence allowing them to extract more oil. Back then, their recovery factor was just getting close to 30% percent and now, primarily because of their technology approach, they are well above 50% percent”, said Jørgen Hallundbæk, who for more than two decades have partnered with Statoil in Norway.
The conference took place in Copenhagen on October 21st at DR Koncerthuset and was hosted by Oil Gas Denmark – a trade organization for all companies in the upstream oil and gas production sector.
Photo: Hans Søndergaard