Offshore industry evolves
OTC’s chairman sees innovative technology helping the sector, from robots to geophysical imaging
When the Offshore Technology Conference held its first event in 1969, deep water was considered 300 feet. Now, drilling rigs go deeper than 10,000 feet. OTC Chairman Wafik Beydoun and country chair for French oil major Total in Kuwait sat down with the Chronicle to discuss how the industry has changed and where it’s headed. His edited comments follow.
Q: What are the biggest changes over the past 50 years with offshore operations?
A: As the industry moves into deeper and deeper water, the fields need to be very large and productive. They need to deliver a lot per well because deep-water drilling costs more. Onshore you can have hundreds of wells. But offshore, 10 to 12 productive wells is enough. There is more pressure to get it right the first time. You must know where you want to drill.
Q: So how do you know where to drill? Has the methodology improved?
A: Yes, through geophysical imaging. It’s ultrasound of the earth. And vertical and horizontal drilling makes it possible. Another thing that makes it possible is robots. In shallow water —400 feet or so — you can have men in scuba equipment. But in deeper water you can use robotic operating vehicles. This technology has helped a lot when you want to go underwater to check your drilling head and blowout preventer.
Q: What have the tragedies like
the 2010 explosion and fire on Deepwater Horizon over the years taught the industry?
A: They improve the whole industry. We’ve learned a lot. BP hosted seminars on what went wrong on Deepwater Horizon. That’s why it’s important to replace some very risky jobs with robots. We will see more unmanned platforms and unmanned rigs. Offshore platforms are getting sensors to detect unusual vibrations. You can control the subsea drilling from the platform or back at headquarters and the technology on board will show if something is not normal.
Q: What’s next for the industry?
A: How can we can use hydrocarbons along with solar, wind and other sources of energy. Hydrocarbons are the dominant source for now, but we will have to remain agile.
Q: Has the offshore industry learned to operate in a lower price environment?
A: Ten years ago offshore drilling was not profitable at $50, but the slowdown in 2014 helped offshore operators reduce operating costs by being more efficient. If you can drill faster, you pay less rig time. Some but not all the drilling fields are profitable at $40 to $50. As long as there are technological innovations, offshore operations will remain viable.
Q: What advice do you have for young people heading to college? Should they study petroleum engineering?
A: Petroleum will be needed for the next 40 to 50 years. We need it for textile making, the automotive industry, plastics. I encourage students to go into the industry, but it will be different. Oil and gas companies are becoming energy companies including natural gas, solar power, wind and biofuels.
Q: In another 50 years, will Houston be the center of the energy industry, or will it be somewhere else?
A: Houston has been the center of gravity of the oil and gas industry. But for it to develop the center of gravity in other forms of energy will require broader development of renewable energy sources in Houston. The Chinese are leading the solar energy industry in developing large solar panels that generate electricity. Europe is building wind farms like off the coast of Norway.