American Oil and Gas Reporter - January 2017 - 98

traditional government-centric approach.
This process starts with industry experts
working together to identify a research
priority, issuing a request for proposals,
providing a venue for teaming, then selecting and managing awards. Awards
are made only when there is oversight by
an advisory board and an end-user involved
in the project.
These research priorities come from a
well-defined and vetted list of challenges
addressed by advancing technology. The
program has brought various segments
of the industry, universities, and govern-

ment agencies together to create a common
understanding on issues impacting oil
and gas exploration and production.
This research model is an example of
what can be accomplished through a government-funded consortium and of what
conditions work best. The process speeds
the road to commercialization. The notfor-profit objectivity, a policy of not owning intellectual property, and a broad
membership base contribute to success.
Among the oil and gas industry's
broadest (and biggest) challenges is figuring out how to operate profitably during

extended periods of low commodity prices
while meeting safety and environmental
performance requirements. The consortia
R&D model is as relevant to solving this
challenge as it was to making shale plays
and ultradeepwater blocks economic and
safe to develop. This model is a contrast
to prior Department of Energy funding
because it provides continuity to research
funding and full engagement by endusers. This is a good thing.
The brilliance of the 2005 Energy Policy Act legislation, which has funded the
past 10 years of RPSEA projects, is that
funds were not appropriated, but instead
came from royalties. Consequently, the
program was not at the mercy of annual
appropriations. The investments made to
support the goal of enabling the development of solutions to onshore and offshore
production challenges are now paying
dividends.
Improving EURs And Safety
The program members' technical experts have provided a long list of topics
where government investments in R&D
today could continue to pay high dividends.
At the top of the list is improving recovery
factors and safety performance, both of
which are universal themes across all
RPSEA programs.
The ultradeepwater program, for example, includes a study assessing needs
and identifying concepts for improved
recovery technology in two deepwater
plays: the Paleogene and Neogene, in
which a projected 81 percent of the combined 79 billion barrels of original oil in
place remains untapped. Meanwhile, the
small producer program includes a project
that has identified a target of 135 billion
barrels of potential production though
CO2 EOR in the Permian Basin's 12county San Andres formation.
Some of the ultradeepwater R&D projects that address optimizing safety and/or
recovery rates include improved seismic
imaging for pressure prediction, mitigating
annular pressure buildup, deepwater cementing with oil-based and synthetic
muds, subsea chemical storage and injection, real-time riser integrity management, vortex induced motions and ocean
currents, intelligent blowout preventers,
subsea monitoring of produced water,
high-voltage direct current connectors
for subsea processing, conventional dry
tree-based floating drilling and production
systems, tanker offloading, "smart" cements and drilling muds, intelligent formation telemetry, deepwater coiled tubing
drilling and intervention vessels, and

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American Oil and Gas Reporter - January 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2017

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