Intelligent Acquisition in the Arctic

July 18th, 2010

ION began working in the Arctic in 2006 and acquired its first in-ice streamer survey offshore Greenland in 2009.  Extreme weather and ice create narrow acquisition windows and demand rugged equipment and efficient operations.  At the request of major E&P companies, ION developed the industry’s first acquistion system purpose-designed to operate in the presence of ice. 

Key technologies associated with the system include Orca command & control software, towed DigiSTREAMER cables, and DigiFIN-enabled streamer steering which allowed seismic data to be acquired under ice in one of the most prolific ice seasons in recent memory.  ION’s solution for the Arctic also includes advanced data processing (via its GX Technology group) and the survey design and project management capabilities of its experienced Arctic operations team.

To learn more, watch the video on YouTube:

Seismic Collaboration: Sub-salt Exploration

July 12th, 2010

One of the world’s most technologically sophisticated offshore operators had compiled a large portfolio of highly prospective acreage in the Gulf of Mexico and offshore West Africa, Brazil, and the Mediterranean.  In many areas, potential reservoir targets were difficult to identify as they frequently were overlain by regional salt bodies or areally extensive salt sheets. 

The ‘clock was ticking’ for this operator, as drilling capacity was already under contract to test high-potential prospects.  In some areas, ION’s E&P client faced a tough decision: 1) relinquish soon-to-expire acreage, 2) extend the leases, or 3) ‘double down’ by acquiring offset blocks?

This E&P operator had been one of the earliest proponents of reverse time migration (RTM) as the next evolution in pre-stack depth migration.  As an early adopter of RTM, this E&P operator was keenly aware of the advantages that RTM could bring to structurally complex imaging situations, including reservoir targets that were adjacent to or beneath the salt.  Moreover, they had witnessed first-hand the 30x improvement in efficiency that GXT had achieved in implementing the computationally intensive RTM algorithm. 

In 2008, the E&P operator committed to a multi-year RTM alliance with GXT.  Since the agreement was signed, ION has helped this E&P client better understand the risks and opportunities associated with its exploration portfolio around the world.  GXT applied the RTM algorithm to successfully image potential reservoirs in the Gulf of Mexico, as well as in Brazil as part of ION’s BrasilSPAN regional multi-client seismic program.

RTM and additional geophysical studies have enabled ION’s E&P client to better characterize assets that already have been discovered and, in so doing, optimize their appraisal, development, and reservoir management programs.  To learn more about ION’s collaboration with E&P companies involved in sub-salt exploration, watch the video below:

Man vs. Beast

July 11th, 2010

Chief Gee-Oh congratulates both Spain and Paul the Octopus for their World Cup victories today.  Paul’s victory is especially sweet, as he correctly predicted before the match that Spain would be the 2010 FIFA World Cup Champion.  Today’s prediction tops off a couple of weeks in which he has gone 8-for-8 in picking match winners. 

As shown in the picture on the left, Paul was clearly wrapped up in all the hype about Spain.  Yours truly feels especially humbled by Paul and concedes to his soothsaying abilities.  Despite Chief Gee-Oh’s prediction here on Seis Matters on June 10th before the matches began that the the boys from the Netherlands would take the Cup, it wasn’t meant to be.  In the end, the beast from the deep prevailed! 

We’re now checking to see what Paul thinks about oil prices…and the stock market.

Digital Revolut[ION]

July 8th, 2010

Dedicated to RM, whose contributions and perspectives conspired us all…

To interact with ION’s full complement of digital and Web 2.0 platforms, visit our digital library.  As a fun factoid, we’re now approaching 7,000 views on the “ION Channel” on YouTube.

Seismic Collaboration: Characterizing an Unconventional Gas Reservoir

July 5th, 2010

Sinopec was formulating plans for a drilling program in a partially developed gas field in the Sichuan Province, China.  Although seismic data existed for the field, it was not of the quality desired.  Drilling success rates were low (~35%), which reduced the economic potential of the proposed drilling program.  Improved seismic methods were needed to characterize the reservoir and explain the production variability among the wells already drilled.

ION began collaborating with Sinopec’s geophysicists in 2003 to determine which seismic imaging approaches might best characterize the gas reservoir of interest.  Forward modeling and small-scale pilot studies determined that a full-wave (multicomponent) seismic imaging program had the greatest potential to capture the subsurface data needed to properly characterize the reservoir.

In 2004, Sinopec boldly committed to what was then the largest full-wave survey on record.  More than 6,000 full-wave VectorSeis sensors were deployed in the acquisition patch by the seismic contractor Sinopec had commissioned to undertake the survey.  After the data was collected, ION’s Reservoir Solutions team began to work directly with the client exploration and production team on an integrated reservoir interpretation project.

Since this project was completed in late 2007, nearly 20 new well locations have been drilled based on the updated reservoir interpretation.  One of these wells became the most productive well in the entire region and nearly doubled production from the field.  At XinChang, Sinopec has increased its drilling success rate from 35% to 85%.  In May 2010, Sinopec issued a press release stating that they had increased booked reserves at the XinChang gas field by 3 TCF (or half a billion BOE).  That’s not only collaboration in action, that’s gas in the tank and money in the bank!

To learn more, read the XinChang case study or, to learn more about this and ION’s other reservoir characterization projects in China, watch the video below:

Happy 4th of July!

July 2nd, 2010

Seismic Collaboration: Arctic Exploration

June 30th, 2010

The Arctic poses extreme challenges to all E&P activities, including seismic acquisition and data processing.  Harsh weather conditions provide a narrow weather window for seismic operations, wreck havoc with in-water acquisition equipment, and introduce unwanted noise into seismic data.  These factors limit both the quantity and quality of available seismic information in the Arctic.

Without access to this critical subsurface data, E&P operators are ‘flying blind’ in making assessments about what acreage to lease and to drill.  In 2009, ION was asked by a group of major E&P companies to adapt some of its core technologies and design a program to safely and efficiently acquire and image seismic data in the ice‐infested waters offshore Greenland.

These acquisition technologies were used to clear paths through the ice for the seismic acquisition vessels, steer the streamer cables within the fairways of open water, and enable acquisition despite the challenges of operating in extremely cold waters and near the northern magnetic pole.  ION’s GX Technology group then processed the data using special techniques to record (and remove) ice‐induced noise, back‐scatter, and multiples to create a high quality regional dataset that was added to ION’s ArcticSPAN seismic data libary in late 2009.

Following onto the Phase I acquisition program, E&P operators have underwritten additional acquisition offshore Greenland to further evaluate the basin‐scale factors that shaped the tectonic history and petroleum potential of this high-potential exploration region.

To learn more about ION’s collaborations with E&P operators in the Arctic, watch the video below:

EAGE 2010: Post-show Impressions

June 27th, 2010

The 72nd EAGE Conference & Exhibition took place from 14-17 June in Barcelona.  The timing and theme of the conference could not have been more poignant.  Mid-June marks the height of spring in Spain and surely fit the theme of the conference – a ‘New Spring for Geoscience’.  The feelings of innovation and energy were felt at many levels during the show as delegates were eager to wave goodbye to the gloom and doom of recession.

According to the EAGE, 5500 delegates attended the 2010 conference, marking a 20% increase versus the prior two EAGE shows.  Our stand was busy throughout the week as E&P operators and contractors came to learn more about ION and INOVA, whom we hosted on the booth in Barcelona.

The INOVA joint venture between ION and BGP was finalised at the end of March and the EAGE was the first major international event showcasing the new company.  Our INOVA colleagues organised a successful Lunch ’n Learn which was attended by major European land contractors and E&P companies, followed by a launch party in the evening.  Attended by nearly 200 guests who sipped free-flowing Sangria and the best selection of Spanish cavas, the party provided an opportunity for key executives and staff from ION and BGP to introduce INOVA to the industry.

Our Marine team continued commercializing our Intelligent Acquisition [IA] streamer platform.  Oil & gas company interest in streamer steering, especially in the Arctic, ensured a steady flow of prospective customers onto the stand and the Whisper Suite near the convention center.  Our Marine team also used the Barcelona show to formally launch our VectorSeis Ocean (VSO) II seabed recording system and alert all contractors to the fact that the system is now commercially available to all service providers following the expiration of our exclusivity agreement with RXT.

Our GXT Imaging Solutions group was very busy showcasing our global successes in key technologies through private demonstrations, technical paper sessions, and virtual media.  RTM continued to be an attention grabber, as were our successes in wide-azimuth processing and characterizing unconventional reservoirs.  Our interactive Google Earth globe provided a glimpse into our processing centres and success stories from around the world.

Our Integrated Seismic Solutions (ISS) group used a dedicated workstation to showcase our library of BasinSPAN regional seismic programmes and to update potential clients on our works-in-progress related to the Arctic and unconventional reservoir characterization.

We also used EAGE to launch our Collaboration in Action (CiA) campaign.  CiA showcases our work with E&P companies from around the world as we work together to identify pioneering solutions to pressing seismic imaging and operational challenges.

A word of congratulations to the EAGE on their Gala Dinner, one of the most memorable in recent years.  Held at Poble Espanyol (“Spanish Village”), the location was truly breathtaking and provided hundreds of delegates and their spouses with an opportunity to taste food and drinks from various Spanish regions, take a free tour of the historic village, shop in boutiques for Spanish delicacies, or simply relax and watch the amazing flamenco performers.

I cannot finish this blog without mentioning the World Cup.  The first week of the tournament took place during the EAGE with matches showing twice daily.  I am not a huge football fan, but even I could not stand the ‘eerie silence’ around the exhibition hall during match times on the first day as delegates went offsite to cheer on their favorite team.  To tap into the apparent customer demand, we ordered a TV license for days 2 and 3 of the show.  As the sounds of vuvuzelas summoned delegates to the ION stand, we found ourselves with a captive audience who were willing to tolerate the occasional ION ‘story’ in exchange for a front row seat to the matches in Johannesburg.

See you all in just under a year in Vienna!!!  Let us hope that the 2011 EAGE can live up to the success and great optimism of this year’s event.

Friday Fun: Spill Clean-up

June 25th, 2010

Get Smart, on Global Shales

June 20th, 2010

Excerpted from Hart’s EAGE Show Daily

ION has found itself immersed in one of the hottest E&P plays of the last two decades – unconventional shale development.  Since 2003, ION’s GX Technology group has processed more than 12,000 square miles of unconventional shale data from around the world. 

In recent years, ION has extended their participation in unconventional shales beyond processing and now offers end-to-end services that include survey design and planning, technology provision, data processing and interpretation, and overall project management.  ION has executed these full-scope projects in several North American shale basins and, like many E&P operators, is now turning its attention to the shales of Europe.

Scott LaBaume, ION’s Vice President of Solutions for North America, describes the evolution of shale development, “A few years ago, most E&P operators viewed shales primarily as engineering plays.  The shales were known to be really extensive and were assumed to be homogenous.  Since we knew where the shales were and were assuming the reservoir was homogeneous, many operators didn’t view seismic as a critical tool for reservoir development.  E&P firms simply drilled horizontal wells and executed multi-stage hydraulic fracturing programs to bring them on production.”

“In recent years, that viewpoint has changed.  The E&P community is beginning to realize that the assumption of homogeneity is flawed.  Like any reservoir, these shales vary in terms of lithology and natural fracturing.  If we can use seismic to identify rock types, brittleness, or fracture density and orientation within the reservoir intervals, we can help asset teams optimize well placement and hydraulic fracturing designs.  For instance, we might help an asset team determine where to place their wells in the reservoir to maximize production and minimize hydraulic fracturing costs.”

ION has found that environmental issues are critical in many of the shale development areas.  Many North American shale plays are often located underneath densely populated regions where man-made infrastructure and agricultural operations are prevalent or underneath government-stewarded lands in which oil & gas development needs to be conducted with the utmost environmental friendliness.

Several technologies are helping to improve the environmental profile of seismic operations.  One is the increasing use of cableless acquisition systems.  Several equipment companies, including ION’s 49% owned INOVA joint venture with BGP, have developed cableless systems which they claim reduce the environmental footprint of seismic operations, improve acquisition efficiency, and enable crews to get in and out of sensitive areas more quickly.

The FireFly system, frequently used by ION on its integrated shale projects, makes use of a sophisticated command & control system that allows surveys to be designed to avoid infrastructure or environmentally sensitive areas and that enables ‘stakeless acquisition’ in which deployment crews use GPS-guided handheld units to guide them directly to the source and receiver points, with spatial X-Y-Z information that is accurately recorded in the data headers.

According to LaBaume, “Many of the seismic contractors that have used these cableless programs in ‘shale country’ are beginning to see the advantages of these types of systems.  In a recent Marcellus survey, the contractor recorded up to 952 shots per day in an area where the norm was more like 400.  FireFly provided them with a real competitive advantage as they can access these sensitive areas for the E&P operators and then efficiently execute the programs.”

While the shale opportunity in North America is believed to be significantly larger than in Europe, many E&P operators have begun to secure acreage on the Continent.  Austria, France, Hungary, and Poland have generated significant interest, including the first signs of exploratory drilling.

Wouter Kool, ION’s VP of Solutions Development for Europe commented, “Although Europe’s total resource potential from unconventional may be smaller than North America’s, the shale plays in Europe are still attracting considerable interest driven by both economic and geo-political considerations within the region. 

“I think it’s fair to say that the shales in Europe will turn out to be just as heterogeneous as those in the States, and so seismic can play a key role in characterizing the natural fractures and brittleness of the reservoirs  to help the engineers better target their wells and design hydraulic fracture programs for them.  Moreover, higher service costs and even greater environmental sensitivity across Europe means that we need efficient, environmentally friendly seismic technologies in order to get the job done.  I’m convinced that the shale plays in Europe will emerge as an exciting growth area for the seismic industry in the years ahead.”

To learn more, visit the ION page on the Unconventional Gas Center.