Dec.5, 2006 / Beijing China / 1
Sustainable Growth for Oil and Gas
Dec.5, 2006 / Beijing China / 2
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World oil production witnessed three
major increments;
In 1920s-1930s, the application of
technologies such as seismic reflected
wave method, internal combustion engine
drilling rig and cone bit, increased the
production from 100 million tons to 200
million tons；
In 1960s-1970s, thanks to new theories
and technologies in plate tectonics, water
flooding, and jet drilling, oil production
worldwide increased from 1 billion tons to
2 billion tons；
Dec.5, 2006 / Beijing China / 8
Since 1990s, 3D seismic and directional well
drilling technology improved the success rate of
exploration drilling from 50% in early 1990s to
today’s 70%.
The single well oil and gas equivalent increased
from 2 million barrel to over 7 million barrels.
Offshore seismic, drilling and production
technology, plus the development of petroleum
equipment have made it possible to tap reserve
beyond 3000 meters deep in water.
Offshore oil production represents one-third of the
world total.
Breakthroughs in basin simulation, horizontal
drilling, 3-D seismic and deep-water exploration
stabilize world oil production at 3 billion tons/ year.
Dec.5, 2006 / Beijing China / 9
Exploration targets shifted to 6000-7000 meters onshore
and 3000 meters water depth offshore.
It’s increasingly difficult to develop newly discovered
reservoirs of small size and low quality.
75% of the newly added reserves from complicated or
hidden oil pool of existing oil fields.
Stringent requirement on environment protection demands a
clean production mechanism.
Dec.5, 2006 / Beijing China / 10
Non-marine petroleum geology theory terminates “China is poor in
oil” argument and led to discoveries of large oil fields one after
another.
Application of large heterogeneous sandstone reservoir development
theory, separate zone production, stabilizing oil output by controlling
water-cut, and tertiary recovery technologies, stabilized the
production of Daqing oilfield at 50 million tons/year for 27
consecutive years.
Progressive E&P technologies make it possible for the commercial
development of small fault-block reservoirs less than 1 square
kilometers.
Dec.5, 2006 / Beijing China / 11
Application of geology theory and exploration technology for
passive rift basin and under-explored basins in Sudan, led to
the discovery of 5 billion barrels oil in place in Block 3/7 of
Melut Basin of Sudan.
Application of production technology for carbonate reservoir
of abnormal high pressure and extremely low porosity
increased the daily single well production of Kenziyak subsalt formation to 500 tons from only tens of tons.
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◆ Our philosophy for cooperation: Win-win solution
◆ Combination of our synergy: oil company and
service company.
◆ Make due capital expenditures to ensure benefits
of partners.
◆ Nurturing technical, managerial and operational
personnel of host countries, to realize localization
of employment.
◆ Harmonious development together with
communities.
Dec.5, 2006 / Beijing China / 13
THANK YOU
Dec.5, 2006 / Beijing China / 14