Knudsenlow

The value of a National Petroleum Data Repository as seen from the Authorities point of view : 

The value of a National Petroleum Data Repository as seen from the Authorities point of view Kjell Reidar Knudsen Norwegian Petroleum Directorate

Overview: 

Overview Petroleum important to Norway Challenges 2004 Expectations Experience Conclusion

Role of petroleum sector in Norway 2003: 

Role of petroleum sector in Norway 2003 46% 25% 25% 19% Source: SSB

The Norwegian Continental Shelf: 

The Norwegian Continental Shelf Area: 1,4 million km2 60 % opened for exploratory drilling 9 % of the opened area currently with licenses

Slide5: 

The Norwegian Petroleum Resources (as of 31.12.03) Produced: 3.8 bill Sm3 o.e. Remaining: 9.1 bill Sm3 o.e. (Uncertainty range: 6.5 – 12.5) Remaining: 57 bill boe (40 - 80) 48 oil and gas fields Largest oil field: Statfjord: 584 mill Sm3 oil 57 bill Sm3 gas Largest gas field: Troll: 1325 bill Sm3 gas 292 mill Sm3 oil + 4 fields with approved PDO + 12 fields have ceased production Appr. 75 discoveries not yet approved for development: Appr. 25: expected PDO within 5 years. Appr. 50 may be developed commercially in the long run. Undiscovered resources Produced Remaining reserves Contingent resources in fields and discoveries Possible measures for IOR

Politicians…..: 

Politicians….. Increase petroleum resource base and production Reduce costs

Politics ….. (Ref stortingsmeldingen 38. 2002): 

Politics ….. (Ref stortingsmeldingen 38. 2002) (”The Weathering case”) (”The Long Term Development case”) (Two scenarios)

Actions (Ref Government White Paper 38. 2004): 

Actions (Ref Government White Paper 38. 2004) A flexible exploration policy Ensure realization of vast values in mature fields Reduce the high level of costs in the petroleum activities More efficient use of infrastructure Increased effort on technology R&D Strenghten the ”Norwegian petroleum cluster” Some adjustment in fiscal regime More security for newcomers Higher profitability for tail end production and IOR Simpler farm in7farm out regulations

Tools : 

Tools More efficient data management More effective exploration

Tools (1): 

Tools (1) More efficient data management Make more information available Reduce cost of data management

Slide11: 

Hard Facts - 1991

Slide12: 

Seismic acquisition on Norwegian Continental Shelf

Slide13: 

The Future ?

Slide14: 

CORE STORE – Cores from all wells are stored at the NPD Not all data is digital!

Importance for the nation : 

Importance for the nation Petroleum is of vital importance in the national economy Information is also a national asset for the future Long term ( 50 – 100 years ?) New sectors (other than petroleum production) New technology (which we don’t know yet ) Strategic issue ( independance of companies ”home country”) Information/data management is important for the performance Making the nations policies Exploration strategy Leveling the frame condition Achieve a high recovery factor

Information as a national asset: 

Information as a national asset Costly activity to collect data To measure or to perform data aquisition To process and interprete data To compile and make into information Basis for development of knowledge Input to develop relevant expertise (professional local staff) Can be used in alternative industrial sectors or sciences Correct use of the data gives extensive benefits

National Data Repository Concept: 

National Data Repository Concept Reference information and/or Data Catalogue archive Core samples Fluid samples Professional digital databases Physical storage/warehouses NDR-2 NDR-1 Oil company databases

Aims: 

Aims Preserve geoscience & petrotechnical data Long term perspective Give users access to quality controlled data Government Industry Reduce the total cost of data management Reduce data redundancy Enable networking of data stores if applicable Implement solutions that meet user needs

National Data Repository Concept (Norway): 

National Data Repository Concept (Norway) Reference data Catalogue archive Core samples Fluid samples Professional digital databases Physical storage/warehouses NDR-2 NDR-1 NPD Outsourced

National Data Repository Concept (Norway): 

National Data Repository Concept (Norway) Reference data Catalogue archive Core samples Fluid samples Professional digital databases Physical storage/warehouses NDR-2 NDR-1 NPD Outsourced DISKOS

New technology – from hard copy to digital storage: 

New technology – from hard copy to digital storage Before 16.000 tapes Now 400 tapes (IBM 3590) Digital storage ( 5 pc 3592 casettes)

DISKOS SOLUTION 3 ELEMENTS: 

DISKOS SOLUTION 3 ELEMENTS Oslo Stavanger Bergen Trondheim Harstad Software Multi-client petroleum data repository The Diskos Database Central storage of company data Network High-speed secure closed networks

Tax system in Norway: 

Tax system in Norway All exploration and operation cost can be deducted before net income tax Net income tax = 78 % Savings for companies = Extra income for the State (dry well is a costly affaire for the State budget)

Tools (2): 

Tools (2) More efficient data management Make more information available Reduce cost of data management More effective exploration Make better decisions Increase facts to the decision makers Bring in new brains ( Invite new companies) Reduce development and operation costs

Slide25: 

Yardstick: NCS resource estimates

Exploration well density: 

Exploration well density Source: KonKraft

The Norwegian Sea versus the Gulf of Mexico: 

The Norwegian Sea versus the Gulf of Mexico Gulf of Mexico: ~ 1000 wells > 200m water depth ~ 426 wells > 600m water depth ~ 10.7 BBO, 26 TCF Source GoM: BP 2003 Norwegian Sea: ~ 190 wells ~ 13 wells > 600 m water depth ~ 8.3 BBO, 65 TCF

Government White Paper no 38 (2003 – 2004): 

Government White Paper no 38 (2003 – 2004) Several actions nessesary to improve exploration efficiency: Oil companies presence Area management Cost reductions

Parliament White Paper no 38 (2003 – 2004): 

Parliament White Paper no 38 (2003 – 2004) Oil companies presence New, smaller companies will be an important supplement to todays oil companies present in Norway New companies may be specialised on mature or smaller oilfields.

Government White Paper no 38 (2003 – 2004): 

Government White Paper no 38 (2003 – 2004) Area management Annual awards in mature areas A frequency on unmature area which is tailored to a desired resource growth. (........and capasity to utilize information already aquired)

The 18th Licencing Round has now been announced: 

The 18th Licencing Round has now been announced Quick and efficient access to relevant data is essential

New entrants acquiring acreage : 

New entrants acquiring acreage No. of km2 No. of km2

Conclusions: 

Conclusions

Benefits – The National Data Bank : 

Benefits – The National Data Bank Quick and easy access to quality controlled data Show Case for the Norwegian Area Enables efficient technolgies and services Cost savings (increased tax income) Better decisions