The third CERA increment
Posted by Heading Out on September 21, 2005 - 1:44pm
As you may remember I have discussed the CERA predicted oil sources for 2006 and 2005 in those earlier posts. By comparing these with Chris Skrebowski's list from ODAC we can then start to follow any changes that occur in both predictive lists. We will get into the comparison with Rembrandt a little later, once the lists are compiled. (And as an aside I note that Chris will be speaking at the ASPO meeting in Denver in November - it will be good to hear his latest thoughts).
So here are the projects that CERA anticipate will come on line in 2007, with some sources to give a level of background.
- Plutonio - Deepwater offshore Angola - 220,000 to 240,000 bd peak production is on track for mid 2007, provided the upgrade to the drilling rig Sedco Express that will allow it to drill faster. BP is a partner, and guess who else?
BP's partner in Block 18 is a relatively recent joint venture between state-owned oil firm Sonangol and Chinese state oil company Sinopec, which took over the stake from Anglo-Dutch oil company Royal Dutch Shell.
. The overall production and plans for Angola can be found here, and Rigzone has a map and rendition showing the area of interest. CS has it down for 220,000 bd in 2007. - Rosa/Lirio - also Deepwater Angola - a relational map and statistics from the EIA These are in Block 17, while Plutonio is in Block 18. An earlier article in the Washington Post suggested that they would be on stream by 2005. It is interesting to read a comment in Research & Markets which suggests
The Girassol field where recoverable reserves are estimated at up to 1bn barrels of 32º API oil, commenced production of 180,000 b/d in February 2002. Additional block 17 production from the Jasmin, Lirio and Rosa fields is planned to maintain a steady production rate from the Girassol field cluster for 10 years. This is a reflection of TotalFinaElf's strategy to build production up to a stable plateau and then to maintain it over as long a period as possible, which is in line with Sonangol's preference for extended production.
. This would suggest that there will be no additional overall production from these fields but that it will maintain the Girassol volume. This might explain why CS does not have it, and it would seem fair to count this as a zero net gain. Right ? - Lobito/Tomboco - well I suppose that we need to hope that Angola will remain stable for a while, since this production will come from Block 14 of those mapped above. Chevron Texaco have this one
The second phase of the BBLT Development involving the Lobito and Tomboco fields is expected to produce via sub-sea wells tied into the central production hub. First production from Lobito and Tomboco is expected no later than early 2007.
- Marlim Sul is Deepwater Brazil - at one time the deepest offshore well was here- Rigzone has the main field details. The additional production is apparently tied to the arrival of a new Floating, Production, Storage and Offloading (FPSO) system the P-51 that is anticipated to arrive on site around 2008. This will compliment an existing FPSO the P-40 that is producing 100,000 bd, and the new system - the P-51 is expected to bring in an additional 180,000 bd, but is not now anticipated until 2008. Offshore Technology has more early background on the field. CS has a Stage 3 development set for 2006 at 100,000 bd and a stage 4 set at 120,000 which he anticipates will likely come on stream in 2008. For the sake of inserting a number into the table, I will use the Rigzone 180 kbd for now.
- Marlim Leste - also Deepwater Brazil - CS has this down for 100,000 bd starting in 2005. It is in 3,900 ft of water. However as Oil on line reports
Bidding for contracts relating to P-53, the FPSO that will produce 180,000b/d on the Marlim Leste field, were finally submitted to Petrobras in late May after months of delay within the state-owned operator. A call for bids on the EPC contract was originally opened in late November and was expected back in February, which was again postponed until 31 May due to problems with the government over the oil export line for the project.
So the field is now anticipated to produce 80 kbd more than CS anticipated, though it's delivery date is slipping. - Roncador 3 - again Deepwater off Brazil - CS had this down for 145,000 bd coming on stream in 2005. Petrobras is increasing investment with the intent of accelerating production above that originally anticipated for 2010, to a new level of 3.4 mbd. This is a significant increase. The phase 3 project will use the semi-submersible P-55 for this production. There is another review that lists this as one of the projects anticipated for a total foreseeable increase of 2.668 mbd, with this bringing in 145,000 bd. It is relatively pessimistic.
- Khursaniyah is as the Energy Bulletin reminds us one of the listed improvements planned for Saudi production, with a target of 500,000 bd in 2007. It is part of the summed target increase to 12 mbd (itself a drop from the 12.5 mbd cited at the time of the article. The Haradh part of that increase - some 300,000 bd due next year is reported to be on track). Surprisingly it does not appear to be on CS list.
- Azadegan is onshore Iran, and CS has it down for 100,000 bd. The development has required a loan from japan to allow it to go forward. But progress is slow delayed in part apparently by the threat of landmines being present, and while final production may get up to 150,000 bd with a phase two now scheduled to get up to 260,000 bd for a total production of 410,000 bd. (A cynic might note that this just about matches Iran's reported depletion rate, tsk!).
- Kikeh is Deepwater Malaysia. It is not on CS list. It is targeted for 120,000 bd. It has been the source of some trouble between Malaysia and Brunei over ownership, and there is some talk of gunboats, but it is still on schedule for 2007.
- Vankorskoye is in the Enisey River basin in Siberia, and CS has it down but without a value for production. The area is of considerable interest to India which has been losing out to China on a lot of bids, it seems, recently. So far production does not seem to be definite, though there is some talk that it might reach as high as 300,000 bd, though with no clear date set for that. From the tone of some of these articles one suspects we might be lucky to see this at 200,000 bd by 2010, and for a starting number I will use that figure.
Comments are welcome, if you made it this far.
Technorati Tags: peak oil, oil
Delta Year
2656 2006 (using IEA projections before being backed off)
882 2007 (using a very conservative 1.02% demand growth through 2010)
891 2008
900 2009
909 2010
6238 Sum
So...before depletion... where are the other 4.2M bbl/d going to come from... and, are those projects already started (otherwise they'll never make it)?
Time for a recession, we need one.
If I jack up the pessimistic number to 1.2% average demand growth then the delta required goes up to 6.882 mb/d, plus whatever component of 2005's 3mb/day needs to be added to the 'future delivery' side of the slate.
If I jack up the "medium" number to use the 1994 - 2005 average (1.98% per annum), the 2006 onward delta goes to 9.710 mb/day.
(the prior few years
It is clear that negative surprises in the depletion rates of major producers will easily offset these gains. Note that we have lost about 1 million bpd of anticipated Russian production this year (growth last year was over 10%, now production is flat). If Russia goes to 5% decline it will offset all these new projects. It is easy to talk about Yukos and politics here but it seems that Yukos has really overproduced recklessly and this has been one of the reasons for the de facto nationalization. And then there is Simmons who keeps saying that the Saudi-Arabia will have serious decline fast.
Even in the most optimistic case the new projects will no way meet anticipated demand growth (as shown above).
It may be that the world production can be kept up until 2007 but every year will be more difficult. No oil glut. Everybody (ASPO, CERA, ODAC, Rembrandt) here is quite close to each other and within the statistical error margin. Lack of data and difficulties in estimating future production make that it is not possible to predict the future production more exactly or set the date for the production peak. We have only a time frame of 0 - 5 years (this is what the Chinese say), with the highest probability for years 2007-2008. We will know the date afterwards if ever (the data is really bad).
My firm wrote a software system to assist in that process...
I heard Yergin interviewed on public radio yesterday, and they discusses a lot of the stuff. To be honest, I had never heard his arguments presented except by critics, so it was interesting to see how he described it.
In the interview they did ask him about comments from Simmons and others.
He still thinks the Saudi's can produce 14m bpd. I didn't hear him talk about depletion - he only talked about upside potential - he mentioned that many oilfields end up producing more than originally predicted. Then he tried to sprinkle some fairy dust and talk about how technology could come along and change everything.
Here is the link to the show I heard, On Point at WBUR:
On Point interviews Daniel YerginIf the Saudi's really ramp up their daily volume, then everybody needs to remember that the slope of the depletion curve steepens considerably.
So we get close to meeting demand by doing all of this - now it is 2008 (a mere 27 months away), everybody is fat dumb and happy for another 24 months, maybe? It's hard to tell, because guessing when large and medium fields will go intop depletion is difficult to do since their owners do not want anybody to know....
http://www.shell.com/static/media-en/downloads/speeches/mb_oxford_energy_seminar.pdf
Also here is ChevronTexaco's newest print add in their "Will You Join Us" ad campaign.
http://www.willyoujoinus.com/downloads/twobarrels.pdf
(http://www.globalpublicmedia.com/transcripts/379)
http://www.dailykos.com/storyonly/2005/9/19/132156/430
How would loss of 1.5 - 2.0 mbpd of production from the GOM affect estimates of peak production. What happens if Rita takes out significantly more production on top of Katrina. Even if it is out of production for only 9-24 months (not permanent loss), during reconstruction, will this prevent the world from increasing supply over 84 mbpd in the short term?
And by the time GOM comes back on line, will the other fields that had to ramp up to make the shortfall, decline a few years earlier than predicted. Would the result be a much longer plateau (chopped off peak) caused by the storms?
I personally see the world peaking this year for these reasons. Well before we have pumped half the oil out of the ground, artificial depletion will constrain supply. And the lag will close the gap until true field depletion kicks us over the peak.
Is this possible with respect to CERA and other projections?