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This month Infield Systems Ltd looks at the trend of non-associated gas vs. oil production wells worldwide from 1995-2014. This note examines currently visible prospects and makes no attempt to estimate yet-to-be-found reserves. Only a concerted exploration effort by the industry in the next few years can reverse the decline in oil well figures.
The striking trend is the emergence of subsea gas production. Over this 20-yr period, the industry will have brought more subsea oil wells on-stream than gas. From 1995-1999 there were 159 oil wells and 74 gas wells. However, when compared to the prospects planned for 2010-2014, the pattern reverses with 182 subsea gas wells and 104 subsea oil wells.
Industry has focused on subsea gas projects over the past few years. There are large tie-back to shore projects in areas off northwest Australia, such as Gorgon and Jansz. In Europe, there are the Snøhvit and Ormen Lange fields. There are a number of developing and proposed tie-back to shore projects in Egypt and deepwater gas fields proposed to feed the LNG plants in Bontang Indonesia. In addition, there is growing pressure to stop gas flaring in Nigeria and elsewhere and s a pressing economic necessity to monetize stranded gas reserves.
-Howard Wright, Analyst, Infield Systems
