Friday August 11, 2006

BP's Prudhoe Bay a "giant water field"

peakoil.com -> resourceinvestor.com, adn.com :

BP's problem of corroding pipes is worsening as the nation's largest oil field ages and more water and less oil is produced during drilling. "Really, we are a giant water field," said Bill Hedges, BP PLC's corrosion expert, explaining that what comes up now during drilling is three-quarters water.

The shutdown this week of the Prudhoe Bay oil field because of severe corrosion found in transit lines is raising questions about the condition of the rest of the field. Oil first flowed at Prudhoe Bay on June 20, 1977.

- Having read Matt Simmons' "Twilight in the Desert" not too long ago, I am now able to appreciate just how ominous this is. A water cut of 75% is an absolute nightmare. This is what happens when an oilfield goes past peak and into decline - you get more and more water, and less and less oil. Alaska peaked in 1988 at 2.14 mbpd (million barrels per day). And it's now 2006 - 18 years past Alaska's peak date. Way, way, past peak.

I watched an Australian documentary recently on peak oil. The reporter was shown an old oilfield, still pumping away. But the content that came up was 99% water. A bucket was filled up with it, and poured away to show that it was almost all clear water, with just a tinge of brown. Not much useful stuff in there. And that is going to be the fate of all oilfields. Like I said, it's ominous.

(2006-08-11 12:56:33 SGT) [Energy] Permalink

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