Petroleum Engineering Industry Trends

Saudi Arabia and Russia: A $15 Billion Strategic Energy, Investment, and Geopolitical Partnership Transforming Global Markets 🇸🇦🇷🇺 Few days ago, Foreign Minister HH Prince Faisal bin Farhan arrives in Russia on an official visit. This marks a new chapter in Saudi-Russia relations during the landmark visit to Moscow. Here’s a snapshot of this partnership in numbers: >>>>>> Bilateral Trade & Investment Momentum: ➤ $5.1 billion in total trade volume in 2024 (+30%) ➤ $10 billion via Public Investment Fund (PIF)- Russian Direct Investment Fund joint projects in energy, transport, agriculture. ➤ $1 billion via aramco investments in Russian refining and storage infrastructure, including stakes in NOVATEK’s LNG logistics and SIBUR ➤ $1.2 billion in contracts and equity stakes in logistics hubs, cold storage, and port upgrades in St. Petersburg and Vladivostok ➤ $600 million SABIC partnership with Sibur to produce advanced polymers for global export ➤ $500 million joint agricultural projects to boost Russian grain output and establish Saudi-controlled supply chains >>>>>> Energy, Technology, and Innovation: ➤ $1.5 billion Rosatom-King Abdullah City for Atomic and Renewable Energy agreements for peaceful nuclear energy and knowledge transfer ➤ $800 million in hydrogen and carbon capture R&D programs, with pilot plants planned in Russia’s Far East ➤ $300 million Saudi investments in Russian AI digital infrastructure and cybersecurity firms. ➤ Shared investment in renewable projects, including wind and solar farms backed by Enel Russia and ACWA Power >>>>>> Strategic Collaboration, Geopolitical Alignment: ➤ Long-term oil production coordination through OPEC+, where Saudi Arabia and Russia jointly manage ~25% of global crude output ➤ Saudi engagement with Russia on Syrian stabilization initiatives, reconstruction projects, and humanitarian assistance ➤ Support for Russia’s BRICS+ agenda and closer coordination on de-dollarizing bilateral trade settlements ➤ Dialogues on expanding trade corridors linking Russia to Gulf markets via the International North-South Transport Corridor 👇🏿 Other Key Sectors of Cooperation: • Defense Industry Partnerships • Mining & Metals - joint exploration of rare earths ($400m) • Food & Agriculture • Transport & Logistics • Tourism & Cultural Exchanges This is more than numbers on a page, it is a strategic partnership shaping the next decade of energy security, technology ecosystems, and diversified economic growth.

Eleven points to consider in #digital project execution plan for oil and gas , but also relevant to the #energytransition projects.  Focus on understanding the value and #digitaltransformation savings rather than making it digital. Note the number of different providers that need to be management (there are more and it is more complex than this!)   1) Digital consulting Setting up a digital project execution plan is key. Can be by consultants, #EPC consultancies or internally if the skill sets exist.   2) The new hybrid consultants Just highlighted Azie and io consulting, a spinout of the EPC area recognising that the digital space is growing.     3) The EPC engineering integration All the EPCs cover from concept to construction/commissioning and some into operations. Some have more direct operations data. The the digital integrator knowledge. A #BIM framework should be possible and delivery in 4D and 5D etc. Optimisation should be possible if performed early.   4) The 3D environment In the O&G arena the two main 3D environments. The EPC will be able to provide enhancements on all data and functions. The digital twin is the data, the platform the visual and the user experience.  Consider who owns the data and storage location.   5) Data Structure Use the IOGP CFIHOS standards to structure data.  Key for interfacing with suppliers to create your digital twin.  Decide early.   6) Selection of EPC or digital integrator Define what is required understand how this is reflected in the EPC delivery and possible ongoing digital integrator support.   7) Process Simulation Optimisation of the process and integration into the #digitaltwin model, needs to be included in the digital execution plan.   8) Software providers There is significant opportunity to the engineering execution to include software coded engineering. The EPCs and consultants will be coding engineering #APIs and optimisation APIs.   9) Process Control and Safety Systems Controlling, monitoring and safe operations.  Having the structured databases to collect operational data and availability for AI platforms to access.   10) Asset lifecycle management Maintenance of equipment and reducing cost in this area is a focus of some major providers. I have named two but there are lots of others. They are in an interesting position of having products in place that can have added AI features. The data and the models of equipment operations is only successful if there is the supplier data and operations data available. If it was not in the digital execution plan it may not be possible.   11) AI Solutions providers There are some significant AI providers also providing AI platforms to analyse operations data. A huge opportunity to analyse large quantities of data from one of many projects with input from suppliers and possible optimisation opportunities.  But needs to be in the digital execution plan. The visual gives an idea of the complexity for digital delivery. #digitaltecheng

The International Energy Agency (IEA) says the world's oil and gas fields are declining faster than previously thought — and the rate of decline is accelerating. Its new report analysed 15,000 fields and found that nearly 90% of global oil and gas investment — about $500 billion each year — is now just replacing lost production. Only a small amount is being invested in growth. The industry is running much faster just to stand still. To put this in context: without this constant reinvestment, the global oil balance would lose the equivalent of the combined production from Norway and Brazil every year. Decline rates vary widely across field types: ➡️ Onshore supergiant oil fields in the Middle East → less than 2% per year ➡️ Smaller offshore fields in Europe → more than 15% year year ➡️ Tight oil and shale gas → 35% in the first year and another 15% in the second. The acceleration in the rate of decline is due to an increased reliance on shale oil and gas, where fields need continuous new drilling to maintain their output. The report also notes it takes nearly 20 years on average to move from issuing an exploration licence until first production. However, about 45% of oil is burned in road transport — where far more efficient electric vehicles can quickly displace demand. Redirecting even a fraction of that $500 billion into EV manufacturing and infrastructure could deliver far bigger results — far faster. #energy #oilandgas #energytransition

Why a $100 a Barrel Oil Raises Global Inflation Fears The recent surge in oil prices, with Brent crude inching closer to the $100 per barrel mark, has sent shockwaves through global markets, reigniting fears of inflationary pressures. Since May, Brent crude has witnessed an astonishing 30 percent price increase, prompting traders and economists alike to brace for the possibility of oil reaching this psychologically significant milestone. The rally in oil prices gained further momentum as the extension of OPEC+ supply cuts tightened the global energy markets. Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, emphasized the importance of these cuts in stabilizing international energy markets, advocating for light-handed regulation to mitigate volatility. While OPEC+ aims to maintain market stability and enhance energy security without targeting specific price levels, the ongoing surge in oil prices is raising concerns. The options market has seen a surge in activity, particularly in next month's contracts, reflecting a growing bullish sentiment. Many investors are employing hedged call spread strategies to manage risk in the face of this price surge. Economists believe that higher oil prices are here to stay, primarily due to supply constraints from Saudi Arabia and Russia, coupled with resilient demand. Reports from major oil agencies indicate that the market is likely to experience a deficit of over two million barrels per day in the last quarter of 2023, further bolstering oil prices. However, the extension of OPEC+ cuts has intensified concerns about a potential global inflationary spiral. This has raised worries in the equities market, with experts fearing that surging oil prices could trigger another vicious cycle of inflation, which would weaken the global economy. While the outlook for the world's largest economies, the U.S. and China, is improving, it remains uncertain. Any economic slowdown could have a dampening effect on crude oil demand, potentially making the $100 per barrel level unsustainable. There are no substantial fundamental reasons to justify oil prices exceeding $100 per barrel, especially if it is not accompanied by robust global growth. Developing countries like India and China are now vital players in the global economy, and higher oil prices are unlikely to benefit major importing nations like them, potentially leading to increased market volatility. In conclusion, the relentless surge in oil prices toward the $100 per barrel mark is causing widespread concerns about global inflation and its potential negative impact on the world economy. While OPEC+ cuts and strong demand have fueled this rally, the sustainability of such prices remains a subject of intense debate among experts and investors. As the world closely monitors the energy markets, caution prevails as the specter of aggressive volatility looms large.   Brent Prompt Time spread= CO1 - CO2 future #pressurebuiling

Over the past few weeks there has been significant volatility in crude oil. Headline inflation is directly impacted via energy costs, and there can be a knock on impact on core components too. If we are forecasting inflation should we therefore update our model regularly to account for such volatility in crude oil? At Turnleaf Analytics, we have a forecasting model for US CPI which is updated daily, and over the past few weeks, it has adjusted its forecast curve reacting to the volatility in crude. If we consider the US CPI market, which is less liquid than crude (that pun was 100% intended..), it moves reflecting gasoline changes which is an important part of the CPI basket (on a volatility weighted basis). So from that perspective if you're trading the US CPI market, having a model that updates at a high frequency is useful. In particular, it is possible to trade the lead/lag effect between moves in gasoline and the US CPI market. Whilst obviously how accurate the forecast of a model is important (what is the mean absolute error, say 3M out of the forecast model), changes in the forecast themselves can in themselves provide signals for traders. If you're interested in learning more about the trading approach of US CPI vs gasoline, I'd definitely recommend Ilia Bouchouev's book "Virtual Barrels" which discusses this in a lot of detail. Most importantly, putting aside markets, let's hope there will be peace.

𝗥𝗼𝗰𝗸 𝗣𝗵𝘆𝘀𝗶𝗰𝘀 𝗮𝗻𝗱 𝗘𝗹𝗮𝘀𝘁𝗶𝗰 𝗠𝗼𝗱𝘂𝗹𝗶: 𝗦𝘁𝗿𝗲𝘀𝘀-𝗦𝘁𝗿𝗮𝗶𝗻 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 𝗳𝗼𝗿 𝗢𝗶𝗹 𝗮𝗻𝗱 𝗚𝗮𝘀 𝗘𝘅𝗽𝗹𝗼𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 1. Hooke's Law: Stress is proportional to strain within the elastic limit. 2. Stress: Force per unit area acting on a material. 3. Strain: Measure of deformation (due to stress action) expressed as change in dimension divided by original dimension. 4. Elastic Behavior: Material returns to original shape after stress is removed. 5. Plastic Behavior: Irreversible deformation beyond the elastic limit. 6. Yield Strength: Stress level at which material begins to deform plastically. 7. Ultimate Strength: Maximum stress before necking and failure. 8. Fracture Stress: Stress level at which material fractures or breaks. 9. Bulk Modulus (K): Resistance to uniform compression. 10. Shear Modulus (G or μ): Resistance to shear deformation. 11. Young's Modulus (E): Stiffness under tensile or compressive stress. 12. Poisson's Ratio (ν): Ratio of lateral to axial strain under uniaxial stress. 13. Stress-Strain Curve: Graphical representation of stress and strain. 14. Strain Hardening: Increased resistance to deformation after yielding. 15. Necking: Localized reduction in cross-sectional area. 16. Ductile Rock: Rock that can undergo significant plastic deformation, as: Anticline ( upward arching folds) and Syncline ( downward arching folds). 17. Brittle Rock: Rock that fractures rather than deforms plastically, as Faults ( Normal faults, Reverse,...), Fractures and Joints. 18. Elastic Moduli: Constants describing material's resistance to deformation. 19. Tensile Stress: Stress that attempts to elongate or stretch a material. 20. Lateral and Axial Strain: Deformation perpendicular and parallel to applied force. 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐎𝐢𝐥 𝐚𝐧𝐝 𝐆𝐚𝐬 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 1. Exploration: Interpreting subsurface rock properties using elastic moduli. 2. Reservoir Characterization: Evaluating rock porosity, permeability, and quality. 3. Hydraulic Fracturing: Designing effective fracturing treatments based on stress analysis. 4. Wellbore Stability: Modeling stresses around boreholes. 5. Production Optimization: Predicting reservoir performance. 6. Drilling Mud Weight Design: Formulating drilling fluids. 7. Geomechanical Modeling: Simulating reservoir behavior. 8. Fault and Fracture Analysis: Mapping fault networks and fracture systems. 9. Seismic Attribute Analysis: Detecting subtle structural features. 10. Enhanced Oil Recovery (EOR) Techniques: Predicting reservoir response to additional stresses.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐏𝐢𝐩𝐢𝐧𝐠 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥 𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 (𝐏𝐌𝐒)? A PMS is an engineering document that defines the rules for selecting, manufacturing, assembling, and testing piping materials used in a plant or project. Think of it as a recipe book for piping systems, it tells you: ✅ Which material to use ✅Where to use it ✅How to connect it ✅How to test and inspect it It prevents ambiguity, ensures safety, and avoids the risk of using the wrong material in the wrong place. 🔹 Why Do We Need a PMS? ✅Standardization – everyone (designers, procurement, contractors) follows the same rules. ✅Safety – ensures materials can handle the required pressure, temperature, corrosion, and service conditions. ✅Compliance – aligns with international codes (ASME, ASTM, EN, API, ISO). ✅Cost Optimization – avoids over-specification and unnecessary use of expensive materials. ✅Traceability – ensures quality control and easy maintenance in the future. 🔹 Structure of a PMS A PMS is usually divided into sections and piping classes. 1. General Section - Purpose, scope, and application (e.g., hydrocarbon, utility, cryogenic, corrosive service). - Applicable codes & standards (ASME B31.3, B16.5, API, etc.). - Definitions and abbreviations. - Notes on fabrication, welding, coating, painting, and inspection. 2. Piping Classes Each piping class is like a “mini specification” for a group of piping systems that have similar design conditions (pressure, temperature, fluid type). Examples: CS150 – Carbon Steel, Class 150, general utilities CS300 – Carbon Steel, Class 300, medium pressure SS150 – Stainless Steel, Class 150, corrosive service LTCS – Low Temperature Carbon Steel Alloy 600# – High-temp service 3. Components in Each Piping Class Every piping class defines the material, standard, and details for: - Pipe (seamless, ERW, wall thickness, corrosion allowance) - Fittings (elbows, tees, reducers, olets, caps) - Flanges (welding neck, slip-on, blind, RTJ or RF) - Valves (gate, globe, ball, check, pressure class) - Gaskets (spiral wound, ring, soft material) - Bolts & Nuts (stud bolts, material grades) - Specials (strainers, spectacle blinds, expansion joints) - Supports (materials, coating/galvanization) 4. Fabrication and Assembly Requirements - End preparations (butt-weld, socket-weld, threaded) - Welding procedure specs (WPS/PQR, pre/post heat treatment) - Branch connection rules (weldolet, sockolet, reinforced pad) 5. Inspection & Testing - Hydrostatic and pneumatic testing - NDT (RT, UT, PT, MT) for welds - Positive Material Identification (PMI) - Dimensional checks and visual inspections 6. Additional Requirements - Corrosion allowance (e.g., +3 mm) - Insulation requirements (hot, cold, cryogenic) - Coatings and linings (epoxy, rubber, PTFE, 3LPE) - Painting (primer + epoxy or PU finish) #piping #pipe #pipingengineering #qa #qc #engineering

📈 DEAN Series: Interpreting Oil Markets for Smart Energy and Economic Decisions Crude oil and refined products are often treated as generic commodities, but their far-reaching influence–especially across transportation, manufacturing, and materials–is frequently underestimated. Whether you work in energy, finance, policy, or industry, understanding where oil and natural gas markets are headed is essential. This second installment of Demystifying Energy Analysis and Navigation (DEAN) focuses on how we track global oil markets, where they stand, and what current trends mean for the broader economy and long-term planning. 🔹 1. Why oil and natural gas matter. Academic work often downplays oil’s macro role and notes falling demand intensity. Yet oil and natural gas remain vital in agriculture, petrochemicals, and power–underpinning inflation, employment, trade, and investment, even in sectors not typically labeled energy-intensive. 🔹 2. How we measure it. Oil is globally traded but varies by grade and geography. We track U.S. and global supply, demand, and inventories–relying primarily on consistent EIA data. While we monitor IEA figures, they’re less relied on by OPEC+ and others. Our modeling examines country- and sector-level trends, highlighting efficiency gains and fuel substitution. 🔹 3. What the data show now. Global demand hit a record 102.7 million b/d in 2024, with EIA projecting another 1.0 million b/d annually through 2026. That assumes sub-trend growth and ample supply from: • OPEC+ spare capacity • Non-OPEC projects (Guyana, Brazil, Norway, Canada) • Strong U.S. productivity U.S. output has averaged 13.5 million b/d YTD, near record highs. Recent geopolitical tensions, including Israel’s strike on Iran, have driven a 10% price jump. Still, broader market focus remains on slowing trade and growth–especially in China–and potential inventory builds. 🔹 4. What to watch • Demand: China’s consumption remains strong via petrochemicals; U.S. product demand is up 1.0% YTD as activity advances ahead of trade shifts. • Supply: Markets remain well supplied. Iran-related risks offset potential Russian gains. • U.S. growth: Rig counts are steady, but productivity is up 6% across Texas basins. U.S. output rose 2.7% YTD. • Macro: The U.S. dollar is down 6.8% YTD, which historically supports prices. While prices recently surpassed mean-reversion thresholds, long-term futures remain steady–suggesting confidence in supply durability.   Key takeaways • Oil remains a quiet but powerful driver of economic performance • Geopolitics and OPEC+ policy present offsetting supply risks • U.S. output grew 2.7% YTD with prices above $60 pre-Middle East tensions • Today’s price environment offers room for growth across OPEC+, non-OPEC, and U.S. producers, though investment depends on long-term demand signals More to come in the DEAN series as we continue to connect macro indicators with energy market insights. #EnergyEconomics #OilAndGas #DEAN

FLOW ZONE INDICATOR (FZI) AND RESERVOIR QUALITY INDEX (RQI) IN RESERVOIR STUDIES 1. Core Concepts RQI (Reservoir Quality Index) Quantifies the "pore throat size" influencing fluid flow: RQI = 0.0314 × √(k / φ) (Where `k` = permeability [mD], `φ` = porosity [fraction]) *Units: microns (µm). Higher RQI = better flow capacity.* FZI (Flow Zone Indicator) Groups rocks with similar pore-throat characteristics: FZI = RQI / φz (Where `φz` = Normalized porosity = φ / (1 - φ)) Units: µm. Rocks with similar FZI form a Hydraulic Flow Unit (HFU). 2. Role in Reservoir Simulation A. Rock Typing & HFUs Hydraulic Flow Units (HFUs) are zones with consistent FZI values. Simulation Workflow: 1. Core Analysis: Calculate FZI from core data (k, φ). 2. Cluster Analysis: Group rocks into HFUs using FZI ranges (e.g., FZI 1–2 µm = HFU1; 2–4 µm = HFU2). 3. Log Prediction: Predict HFUs in uncored wells using logs (e.g., NMR, GR, resistivity). 4. 3D Modeling: Populate HFUs in the geological grid. 5. Property Assignment: Assign distinct porosity-permeability transforms, capillary pressure (Pc), and relative permeability (kr) curves per HFU B. Permeability Prediction FZI-based Permeability Models outperform generic correlations: k = 1014 × (FZI)² × [φ³ / (1 - φ)²] (Derived from the Kozeny-Carman equation) Simulation Impact: Accurate permeability distribution improves dynamic flow predictions. C. Upscaling & Grid Design HFUs Guide Gridding: Ensure simulation grids honor HFU boundaries to preserve flow behavior. Upscaling: Properties are averaged within each HFU, minimizing errors in coarse grids. D. Saturation Modeling Capillary Pressure (Pc): Pc curves are defined per HFU (since pore structure controls Pc). Relative Permeability (kr): kr curves are assigned per HFU for accurate fluid displacement simulation. 3. Advantages in Simulation Reduces Uncertainty: HFUs capture geological heterogeneity better than lithofacies alone. Dynamic Validation: HFUs can be validated via history matching (e.g., water cut, pressure). Consistency: Integrates static (geological) and dynamic (flow) properties. 4. Key Considerations Data Quality: Requires robust core data for FZI calibration. Log Prediction: Accuracy depends on log resolution and model calibration. Non-Kozeny Rocks: May not fit carbonates with complex pore systems (vugs, fractures). Scale Dependency: Core-scale FZI must be validated at log/simulation scales.

#Crude_oil_extraction:🔶 is a sophisticated process that combines advanced technology and engineering to efficiently access and produce oil while minimizing environmental impact. Continuous advancements in extraction methods are essential to meet global energy demands sustainably. #The extraction process typically involves several steps: 1. Exploration Seismic Surveys: Geologists and engineers use advanced technologies like seismic imaging to locate potential oil reservoirs. Exploration Wells: Test wells are drilled to confirm the presence and viability of oil. 2. Drilling Vertical Drilling: Traditional method where a straight wellbore is drilled to the oil reservoir. Directional/Horizontal Drilling: Advanced techniques that allow the drill to change direction, increasing access to more oil in challenging reservoirs. 3. Extraction Methods Depending on the reservoir, extraction methods are chosen: Primary Recovery: Natural pressure or simple pump systems are used to bring oil to the surface. Secondary Recovery: Techniques like water flooding or gas injection increase pressure in the reservoir to enhance oil flow. Enhanced Oil Recovery (EOR): More sophisticated methods like thermal recovery (steam injection), chemical flooding, or CO₂ injection are used to extract hard-to-reach oil. 4. Processing and Transport Extracted crude oil is transported via pipelines, ships, or trucks to refineries. At refineries, crude oil is processed into various products through distillation and other chemical processes. #Oil_and_Gas #Oil_Extraction #Artifial_lifts #sucker_rod_lift #Secondary_Recovery