Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://www.permianco.com/
Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline.
Demand For Oil
The demand side of peak oil is concerned with the consumption over time, and the growth of this demand. World crude oil demand grew an average of 1.76% per year from 1994 to 2006, with a high of 3.4% in 2003-2004. World demand for oil is projected to increase 37% over 2006 levels by 2030. It will rise to 118 million barrels per day from 86 million barrels, due in large part to increases in demand from the transportation sector.
Thriving economies such as China and India are quickly becoming large oil consumers. China has seen oil consumption grow by 8% yearly since 2002, doubling from 1996-2006. In 2008, auto sales in China were expected to grow by as much as 15-20%,
India's oil imports are expected to more than triple from 2005 levels by 2020, rising to 5 million barrels per day.
Petroleum Supply
Discoveries
“All the easy oil and gas in the world has pretty much been found. Now comes the harder work in finding and producing oil from more challenging environments and work areas.”
— William J. Cummings, Exxon-Mobil company spokesman, December 2005
To pump oil, it first needs to be discovered. The peak of world oilfield discoveries occurred in 1965 at around 55 billion barrels per year.
Reserves
Conventional crude oil reserves include all crude oil that is technically possible to produce from reservoirs through a well bore, using primary, secondary, improved, enhanced, or tertiary methods.
Reserves in effect peaked in 1980, when production first surpassed new discoveries, though creative methods of recalculating reserves have made this difficult to establish exactly.
Concerns Over Stated Reserves
“World reserves are confused and in fact inflated. Many of the so-called reserves are in fact resources. They're not delineated, they're not accessible, and they’re not available for production.”
— Sadad I. Al Husseini, former VP of Aramco, presentation to the Oil and Money conference, October 2007
Al-Husseini estimated that 300 billion of the world's 1,200 billion barrels of proved reserves should be re-categorized as speculative resources.
Oil Field Decline
Of the largest 21 fields, at least 9 are in decline. In April, 2006, a Saudi Aramco spokesman admitted that its mature fields are now declining at a rate of 8% per year. This information has been used to argue that Ghawar, which is the largest oil field in the world and responsible for approximately half of Saudi Arabia's oil production over the last 50 years, has peaked. The world's second largest oil field, the Burgan field in Kuwait, entered decline in November 2005.
Pessimistic Predicitions Of Future Oil Production
Saudi Arabia's King Abdullah told his subjects in 1998, "The oil boom is over and will not return... All of us must get used to a different lifestyle." Since then he has implemented a series of corruption reforms and government programs intended to lower Saudi Arabia's dependence on oil revenues. The royal family was put on notice to end its history of excess and new industries were created to diversify the national economy.
Texas oilman T. Boone Pickens stated in 2005 that worldwide conventional oil production was very close to peaking. On June 17, 2008, in testimony before the U.S. Senate Energy and Natural Resources Committee, Pickens stated that "I do believe you have peaked out at 85 million barrels a day globally."
At least one oil company, French supermajor Total S.A., announced plans in 2008 to shift their focus to nuclear energy instead of oil and gas. A Total senior vice president explained that this is because they believe oil production will peak before 2020, and they would like to diversify their position in the energy markets.
Saturday, October 3, 2009
OPEC
Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://www.permianco.com/
The Organization of the Petroleum Exporting Countries, OPEC; is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again.
According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world and when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world. This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.
OPEC decisions have had considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many whom had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. Overall, the evidence suggests that OPEC did act as a cartel, when it adopted output rationing in order to maintain price.
http://www.permianco.com/
The Organization of the Petroleum Exporting Countries, OPEC; is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again.
According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world and when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world. This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.
OPEC decisions have had considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many whom had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. Overall, the evidence suggests that OPEC did act as a cartel, when it adopted output rationing in order to maintain price.
OIL WELLS
Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://www.permianco.com/
Overview
An oil well is a general term for any boring through the earth's surface that is designed to find and produce petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil. A well designed to produce mainly or only gas may be termed a gas well.
History
The earliest known oil wells were drilled in China in 347 CE. They had depths of up to about 800 feet (240 m) and were drilled using bits attached to bamboo poles. The oil was burned to evaporate brine and produce salt. By the 10th century, extensive bamboo pipelines connected oil wells with salt springs. The ancient records of China and Japan are said to contain many allusions to the use of natural gas for lighting and heating. Petroleum was known as burning water in Japan in the 7th century.
The Middle East's petroleum industry was established by the 8th century, when the streets of the newly constructed Baghdad were paved with tar, derived from petroleum that became accessible from natural fields in the region. Petroleum was distilled by the Persian alchemist Muhammad ibn Zakarīya Rāzi (Rhazes) in the 9th century, producing chemicals such as kerosene in the alembic (al-ambiq),[and which was mainly used for kerosene lamps. Arab and Persian chemists also distilled crude oil in order to produce flammable products for military purposes. Through Islamic Spain, distillation became available in Western Europe by the 12th century.
Some sources claim that from the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan, to produce naphtha for the petroleum industry. These fields were described by Marco Polo in the 13th century, who described the output of those oil wells as hundreds of shiploads. When Marco Polo in 1264 visited the Azerbaijani city of Baku, on the shores of the Caspian Sea, he saw oil being collected from seeps. He wrote that "on the confines toward Geirgine there is a fountain from which oil springs in great abundance, inasmuch as a hundred shiploads might be taken from it at one time."
Shallow pits were dug at the Baku seeps in ancient times to facilitate collecting oil, and hand-dug holes up to 35 meters (115 ft) deep were in use by 1594. These holes were essentially oil wells. Apparently 116 of these wells in 1830 produced 3,840 metric tons (about 28000 barrels) of oil. In 1849, Russian engineer F.N. Semyenov used a cable tool to drill an oil well on the Apsheron Peninsula, ten years before Colonel Drake's famous well in Pennsylvania. Also, offshore drilling started up at Baku at Bibi-Eibat field near the end of the 19th century, about the same time that the first offshore oil well was drilled in 1896 at Summerland field on the California Coast.
The earliest oil wells in modern times were drilled percussively, by hammering a cable tool into the earth. Soon after, cable tools were replaced with rotary drilling, which could drill boreholes to much greater depths and in less time. The record-depth Kola Borehole used non-rotary mud motor drilling to achieve a depth of over 12 000 meters (38,000 ft). Until the 1970s, most oil wells were vertical, although lithological and mechanical imperfections cause most wells to deviate at least slightly from true vertical.
However, modern directional drilling technologies allow for strongly deviated wells which can, given sufficient depth and with the proper tools, actually become horizontal. This is of great value as the reservoir rocks which contain hydrocarbons are usually horizontal, or sub-horizontal; a horizontal wellbore placed in a production zone has more surface area in the production zone than a vertical well, resulting in a higher production rate. The use of deviated and horizontal drilling has also made it possible to reach reservoirs several kilometers or miles away from the drilling location (extended reach drilling), allowing for the production of hydrocarbons located below locations that are either difficult to place a drilling rig on, environmentally sensitive, or populated.
Life of a Well
The creation and life of a well can be divided up into five segments:
• Planning
• Drilling
• Completion
• Production
• Abandonment
Types of Wells
Oil wells come in many varieties. By produced fluid, there can be wells that produce oil, wells that produce oil and natural gas, or wells that only produce natural gas. Natural gas is almost always a byproduct of producing oil, since the small, light gas carbon chains come out of solution as it undergoes pressure reduction from the reservoir to the surface, similar to uncapping a bottle of soda pop where the carbon dioxide effervesces. Unwanted natural gas can be a disposal problem at the well site. If there is not a market for natural gas near the wellhead it is virtually valueless since it must be piped to the end user. Until recently, such unwanted gas was burned off at the wellsite, but due to environmental concerns this practice is becoming less common. Often, unwanted (or 'stranded' gas without a market) gas is pumped back into the reservoir with an 'injection' well for disposal or repressurizing the producing formation.
Another solution is to export the natural gas as a liquid. Gas-to-liquid, (GTL) is a developing technology that converts stranded natural gas into synthetic gasoline, diesel or jet fuel through the Fischer-Tropsch process developed in World War II Germany. Such fuels can be transported through conventional pipelines and tankers to users. Proponents claim GTL fuels burn cleaner than comparable petroleum fuels. Most major international oil companies are in advanced development stages of GTL production, with a world-scale (140,000 bbl/day) GTL plant in Qatar scheduled to come online before 2010. In locations such as the United States with a high natural gas demand, pipelines are constructed to take the gas from the wellsite to the end consumer.
Another obvious way to classify oil wells is by land or offshore wells. There is very little difference in the well itself. An offshore well targets a reservoir that happens to be underneath an ocean. Due to logistics, drilling an offshore well is far more costly than an onshore well. By far the most common type is the onshore well. These wells dot the Southern and Central Great Plains, Southwestern United States, and are the most common wells in the Middle East.
Another way to classify oil wells is by their purpose in contributing to the development of a resource. They can be characterized as:
• production wells are drilled primarily for producing oil or gas, once the producing structure and characteristics are determined
• appraisal wells are used to assess characteristics (such as flow rate) of a proven hydrocarbon accumulation
• exploration wells are drilled purely for exploratory (information gathering) purposes in a new area
• wildcat wells are those drilled outside of and not in the vicinity of known oil or gas fields.
At a producing well site, active wells may be further categorised as:
• oil producers producing predominantly liquid hydrocarbons, but mostly with some associated gas.
• gas producers producing almost entirely gaseous hydrocarbons.
• water injectors injecting water into the formation to maintain reservoir pressure or simply to dispose of water produced with the hydrocarbons because even after treatment, it would be too oily and too saline to be considered clean for dumping overboard, let alone into a fresh water source, in the case of onshore wells. Frequently water injection has an element of reservoir management and produced water disposal.
• aquifer producers intentionally producing reservoir water for re-injection to manage pressure. This is in effect moving reservoir water from where it is not as useful to where it is more useful. These wells will generally only be used if produced water from the oil or gas producers is insufficient for reservoir management purposes. Using aquifer produced water rather than sea water is due to the chemistry.
• gas injectors injecting gas into the reservoir often as a means of disposal or sequestering for later production, but also to maintain reservoir pressure.
http://www.permianco.com/
Overview
An oil well is a general term for any boring through the earth's surface that is designed to find and produce petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil. A well designed to produce mainly or only gas may be termed a gas well.
History
The earliest known oil wells were drilled in China in 347 CE. They had depths of up to about 800 feet (240 m) and were drilled using bits attached to bamboo poles. The oil was burned to evaporate brine and produce salt. By the 10th century, extensive bamboo pipelines connected oil wells with salt springs. The ancient records of China and Japan are said to contain many allusions to the use of natural gas for lighting and heating. Petroleum was known as burning water in Japan in the 7th century.
The Middle East's petroleum industry was established by the 8th century, when the streets of the newly constructed Baghdad were paved with tar, derived from petroleum that became accessible from natural fields in the region. Petroleum was distilled by the Persian alchemist Muhammad ibn Zakarīya Rāzi (Rhazes) in the 9th century, producing chemicals such as kerosene in the alembic (al-ambiq),[and which was mainly used for kerosene lamps. Arab and Persian chemists also distilled crude oil in order to produce flammable products for military purposes. Through Islamic Spain, distillation became available in Western Europe by the 12th century.
Some sources claim that from the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan, to produce naphtha for the petroleum industry. These fields were described by Marco Polo in the 13th century, who described the output of those oil wells as hundreds of shiploads. When Marco Polo in 1264 visited the Azerbaijani city of Baku, on the shores of the Caspian Sea, he saw oil being collected from seeps. He wrote that "on the confines toward Geirgine there is a fountain from which oil springs in great abundance, inasmuch as a hundred shiploads might be taken from it at one time."
Shallow pits were dug at the Baku seeps in ancient times to facilitate collecting oil, and hand-dug holes up to 35 meters (115 ft) deep were in use by 1594. These holes were essentially oil wells. Apparently 116 of these wells in 1830 produced 3,840 metric tons (about 28000 barrels) of oil. In 1849, Russian engineer F.N. Semyenov used a cable tool to drill an oil well on the Apsheron Peninsula, ten years before Colonel Drake's famous well in Pennsylvania. Also, offshore drilling started up at Baku at Bibi-Eibat field near the end of the 19th century, about the same time that the first offshore oil well was drilled in 1896 at Summerland field on the California Coast.
The earliest oil wells in modern times were drilled percussively, by hammering a cable tool into the earth. Soon after, cable tools were replaced with rotary drilling, which could drill boreholes to much greater depths and in less time. The record-depth Kola Borehole used non-rotary mud motor drilling to achieve a depth of over 12 000 meters (38,000 ft). Until the 1970s, most oil wells were vertical, although lithological and mechanical imperfections cause most wells to deviate at least slightly from true vertical.
However, modern directional drilling technologies allow for strongly deviated wells which can, given sufficient depth and with the proper tools, actually become horizontal. This is of great value as the reservoir rocks which contain hydrocarbons are usually horizontal, or sub-horizontal; a horizontal wellbore placed in a production zone has more surface area in the production zone than a vertical well, resulting in a higher production rate. The use of deviated and horizontal drilling has also made it possible to reach reservoirs several kilometers or miles away from the drilling location (extended reach drilling), allowing for the production of hydrocarbons located below locations that are either difficult to place a drilling rig on, environmentally sensitive, or populated.
Life of a Well
The creation and life of a well can be divided up into five segments:
• Planning
• Drilling
• Completion
• Production
• Abandonment
Types of Wells
Oil wells come in many varieties. By produced fluid, there can be wells that produce oil, wells that produce oil and natural gas, or wells that only produce natural gas. Natural gas is almost always a byproduct of producing oil, since the small, light gas carbon chains come out of solution as it undergoes pressure reduction from the reservoir to the surface, similar to uncapping a bottle of soda pop where the carbon dioxide effervesces. Unwanted natural gas can be a disposal problem at the well site. If there is not a market for natural gas near the wellhead it is virtually valueless since it must be piped to the end user. Until recently, such unwanted gas was burned off at the wellsite, but due to environmental concerns this practice is becoming less common. Often, unwanted (or 'stranded' gas without a market) gas is pumped back into the reservoir with an 'injection' well for disposal or repressurizing the producing formation.
Another solution is to export the natural gas as a liquid. Gas-to-liquid, (GTL) is a developing technology that converts stranded natural gas into synthetic gasoline, diesel or jet fuel through the Fischer-Tropsch process developed in World War II Germany. Such fuels can be transported through conventional pipelines and tankers to users. Proponents claim GTL fuels burn cleaner than comparable petroleum fuels. Most major international oil companies are in advanced development stages of GTL production, with a world-scale (140,000 bbl/day) GTL plant in Qatar scheduled to come online before 2010. In locations such as the United States with a high natural gas demand, pipelines are constructed to take the gas from the wellsite to the end consumer.
Another obvious way to classify oil wells is by land or offshore wells. There is very little difference in the well itself. An offshore well targets a reservoir that happens to be underneath an ocean. Due to logistics, drilling an offshore well is far more costly than an onshore well. By far the most common type is the onshore well. These wells dot the Southern and Central Great Plains, Southwestern United States, and are the most common wells in the Middle East.
Another way to classify oil wells is by their purpose in contributing to the development of a resource. They can be characterized as:
• production wells are drilled primarily for producing oil or gas, once the producing structure and characteristics are determined
• appraisal wells are used to assess characteristics (such as flow rate) of a proven hydrocarbon accumulation
• exploration wells are drilled purely for exploratory (information gathering) purposes in a new area
• wildcat wells are those drilled outside of and not in the vicinity of known oil or gas fields.
At a producing well site, active wells may be further categorised as:
• oil producers producing predominantly liquid hydrocarbons, but mostly with some associated gas.
• gas producers producing almost entirely gaseous hydrocarbons.
• water injectors injecting water into the formation to maintain reservoir pressure or simply to dispose of water produced with the hydrocarbons because even after treatment, it would be too oily and too saline to be considered clean for dumping overboard, let alone into a fresh water source, in the case of onshore wells. Frequently water injection has an element of reservoir management and produced water disposal.
• aquifer producers intentionally producing reservoir water for re-injection to manage pressure. This is in effect moving reservoir water from where it is not as useful to where it is more useful. These wells will generally only be used if produced water from the oil or gas producers is insufficient for reservoir management purposes. Using aquifer produced water rather than sea water is due to the chemistry.
• gas injectors injecting gas into the reservoir often as a means of disposal or sequestering for later production, but also to maintain reservoir pressure.
OIL REFINERY
Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://www.permianco.com/
Overview
An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units.
Operation
Raw or unprocessed crude oil is not generally useful. Although "light, sweet" (low viscosity, low sulfur) crude oil has been used directly as a burner fuel for steam vessel propulsion, the lighter elements form explosive vapors in the fuel tanks and are therefore hazardous, especially in warships. Instead, the hundreds of different hydrocarbon molecules in crude oil are separated in a refinery into components which can be used as fuels, lubricants, and as feedstock in petrochemical processes that manufacture such products as plastics, detergents, solvents, elastomers and fibers such as nylon and polyesters.
Petroleum fossil fuels are burned in internal combustion engines to provide power for ships, automobiles, aircraft engines, lawn mowers, chainsaws, and other machines. Different boiling points allow the hydrocarbons to be separated by distillation. Since the lighter liquid products are in great demand for use in internal combustion engines, a modern refinery will convert heavy hydrocarbons and lighter gaseous elements into these higher value products.
Oil can be used in a variety of ways because it contains hydrocarbons of varying molecular masses, forms and lengths such as paraffins, aromatics, naphthenes (or cycloalkanes), alkenes, dienes, and alkynes. While the molecules in crude oil include different atoms such as sulfur and nitrogen, the hydrocarbons are the most common form of molecules, which are molecules of varying lengths and complexity made of hydrogen and carbon atoms, and a small number of oxygen atoms. The differences in the structure of these molecules account for their varying physical and chemical properties, and it is this variety that makes crude oil useful in a broad range of applications.
Once separated and purified of any contaminants and impurities, the fuel or lubricant can be sold without further processing. Smaller molecules such as isobutane and propylene or butylenes can be recombined to meet specific octane requirements by processes such as alkylation, or less commonly, dimerization. Octane grade of gasoline can also be improved by catalytic reforming, which involves removing hydrogen from hydrocarbons producing compounds with higher octane ratings such as aromatics. Intermediate products such as gasoils can even be reprocessed to break a heavy, long-chained oil into a lighter short-chained one, by various forms of cracking such as fluid catalytic cracking, thermal cracking, and hydrocracking. The final step in gasoline production is the blending of fuels with different octane ratings, vapor pressures, and other properties to meet product specifications.
Oil refineries are large scale plants, processing about a hundred thousand to several hundred thousand barrels of crude oil a day. Because of the high capacity, many of the units operate continuously, as opposed to processing in batches, at steady state or nearly steady state for months to years. The high capacity also makes process optimization and advanced process control very desirable.
Major Products
Petroleum products are usually grouped into three categories: light distillates (LPG, gasoline, naphtha), middle distillates (kerosene, diesel), heavy distillates and residuum (heavy fuel oil, lubricating oils, wax, tar). This classification is based on the way crude oil is distilled and separated into fractions (called distillates and residuum).
• Liquid petroleum gas (LPG)
• Gasoline (also known as petrol)
• Naphtha
• Kerosene and related jet aircraft fuels
• Diesel fuel
• Fuel oils
• Lubricating oils
• Paraffin wax
• Asphalt and Tar
• Petroleum coke
Common Process Units Found In A Refinery
The number and nature of the process units in a refinery determine its complexity index.
• Desalter unit washes out salt from the crude oil before it enters the atmospheric distillation unit.
• Atmospheric Distillation unit distills crude oil into fractions. See Continuous distillation.
• Vacuum Distillation unit further distills residual bottoms after atmospheric distillation.
• Naphtha Hydrotreater unit uses hydrogen to desulfurize naphtha from atmospheric distillation. Must hydrotreat the naphtha before sending to a Catalytic Reformer unit.
• Catalytic Reformer unit is used to convert the naphtha-boiling range molecules into higher octane reformate (reformer product). The reformate has higher content of aromatics and cyclic hydrocarbons). An important byproduct of a reformer is hydrogen released during the catalyst reaction. The hydrogen is used either in the hydrotreaters or the hydrocracker.
• Distillate Hydrotreater unit desulfurizes distillates (such as diesel) after atmospheric distillation.
• Fluid Catalytic Cracker (FCC) unit upgrades heavier fractions into lighter, more valuable products.
• Hydrocracker unit uses hydrogen to upgrade heavier fractions into lighter, more valuable products.
• Visbreaking unit upgrades heavy residual oils by thermally cracking them into lighter, more valuable reduced viscosity products.
• Merox unit treats LPG, kerosene or jet fuel by oxidizing mercaptans to organic disulfides.
• Coking units (delayed coking, fluid coker, and flexicoker) process very heavy residual oils into gasoline and diesel fuel, leaving petroleum coke as a residual product.
• Alkylation unit produces high-octane component for gasoline blending.
• Dimerization unit converts olefins into higher-octane gasoline blending components. For example, butenes can be dimerized into isooctene which may subsequently be hydrogenated to form isooctane. There are also other uses for dimerization.
• Isomerization unit converts linear molecules to higher-octane branched molecules for blending into gasoline or feed to alkylation units.
• Steam reforming unit produces hydrogen for the hydrotreaters or hydrocracker.
• Liquified gas storage units for propane and similar gaseous fuels at pressure sufficient to maintain in liquid form. These are usually spherical vessels or bullets (horizontal vessels with rounded ends.
• Storage tanks for crude oil and finished products, usually cylindrical, with some sort of vapor emission control and surrounded by an earthen berm to contain spills.
• Amine gas treater, Claus unit, and tail gas treatment for converting hydrogen sulfide from hydrodesulfurization into elemental sulfur.
• Utility units such as cooling towers for circulating cooling water, boiler plants for steam generation, instrument air systems for pneumatically operated control valves and an electrical substation.
• Wastewater collection and treating systems consisting of API separators, dissolved air flotation (DAF) units and some type of further treatment (such as an activated sludge biotreater) to make such water suitable for reuse or for disposal.
• Solvent refining units use solvent such as cresol or furfural to remove unwanted, mainly asphaltenic materials from lubricating oil stock (or diesel stock).
• Solvent dewaxing units remove the heavy waxy constituents petrolatum from vacuum distillation products.
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Overview
An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units.
Operation
Raw or unprocessed crude oil is not generally useful. Although "light, sweet" (low viscosity, low sulfur) crude oil has been used directly as a burner fuel for steam vessel propulsion, the lighter elements form explosive vapors in the fuel tanks and are therefore hazardous, especially in warships. Instead, the hundreds of different hydrocarbon molecules in crude oil are separated in a refinery into components which can be used as fuels, lubricants, and as feedstock in petrochemical processes that manufacture such products as plastics, detergents, solvents, elastomers and fibers such as nylon and polyesters.
Petroleum fossil fuels are burned in internal combustion engines to provide power for ships, automobiles, aircraft engines, lawn mowers, chainsaws, and other machines. Different boiling points allow the hydrocarbons to be separated by distillation. Since the lighter liquid products are in great demand for use in internal combustion engines, a modern refinery will convert heavy hydrocarbons and lighter gaseous elements into these higher value products.
Oil can be used in a variety of ways because it contains hydrocarbons of varying molecular masses, forms and lengths such as paraffins, aromatics, naphthenes (or cycloalkanes), alkenes, dienes, and alkynes. While the molecules in crude oil include different atoms such as sulfur and nitrogen, the hydrocarbons are the most common form of molecules, which are molecules of varying lengths and complexity made of hydrogen and carbon atoms, and a small number of oxygen atoms. The differences in the structure of these molecules account for their varying physical and chemical properties, and it is this variety that makes crude oil useful in a broad range of applications.
Once separated and purified of any contaminants and impurities, the fuel or lubricant can be sold without further processing. Smaller molecules such as isobutane and propylene or butylenes can be recombined to meet specific octane requirements by processes such as alkylation, or less commonly, dimerization. Octane grade of gasoline can also be improved by catalytic reforming, which involves removing hydrogen from hydrocarbons producing compounds with higher octane ratings such as aromatics. Intermediate products such as gasoils can even be reprocessed to break a heavy, long-chained oil into a lighter short-chained one, by various forms of cracking such as fluid catalytic cracking, thermal cracking, and hydrocracking. The final step in gasoline production is the blending of fuels with different octane ratings, vapor pressures, and other properties to meet product specifications.
Oil refineries are large scale plants, processing about a hundred thousand to several hundred thousand barrels of crude oil a day. Because of the high capacity, many of the units operate continuously, as opposed to processing in batches, at steady state or nearly steady state for months to years. The high capacity also makes process optimization and advanced process control very desirable.
Major Products
Petroleum products are usually grouped into three categories: light distillates (LPG, gasoline, naphtha), middle distillates (kerosene, diesel), heavy distillates and residuum (heavy fuel oil, lubricating oils, wax, tar). This classification is based on the way crude oil is distilled and separated into fractions (called distillates and residuum).
• Liquid petroleum gas (LPG)
• Gasoline (also known as petrol)
• Naphtha
• Kerosene and related jet aircraft fuels
• Diesel fuel
• Fuel oils
• Lubricating oils
• Paraffin wax
• Asphalt and Tar
• Petroleum coke
Common Process Units Found In A Refinery
The number and nature of the process units in a refinery determine its complexity index.
• Desalter unit washes out salt from the crude oil before it enters the atmospheric distillation unit.
• Atmospheric Distillation unit distills crude oil into fractions. See Continuous distillation.
• Vacuum Distillation unit further distills residual bottoms after atmospheric distillation.
• Naphtha Hydrotreater unit uses hydrogen to desulfurize naphtha from atmospheric distillation. Must hydrotreat the naphtha before sending to a Catalytic Reformer unit.
• Catalytic Reformer unit is used to convert the naphtha-boiling range molecules into higher octane reformate (reformer product). The reformate has higher content of aromatics and cyclic hydrocarbons). An important byproduct of a reformer is hydrogen released during the catalyst reaction. The hydrogen is used either in the hydrotreaters or the hydrocracker.
• Distillate Hydrotreater unit desulfurizes distillates (such as diesel) after atmospheric distillation.
• Fluid Catalytic Cracker (FCC) unit upgrades heavier fractions into lighter, more valuable products.
• Hydrocracker unit uses hydrogen to upgrade heavier fractions into lighter, more valuable products.
• Visbreaking unit upgrades heavy residual oils by thermally cracking them into lighter, more valuable reduced viscosity products.
• Merox unit treats LPG, kerosene or jet fuel by oxidizing mercaptans to organic disulfides.
• Coking units (delayed coking, fluid coker, and flexicoker) process very heavy residual oils into gasoline and diesel fuel, leaving petroleum coke as a residual product.
• Alkylation unit produces high-octane component for gasoline blending.
• Dimerization unit converts olefins into higher-octane gasoline blending components. For example, butenes can be dimerized into isooctene which may subsequently be hydrogenated to form isooctane. There are also other uses for dimerization.
• Isomerization unit converts linear molecules to higher-octane branched molecules for blending into gasoline or feed to alkylation units.
• Steam reforming unit produces hydrogen for the hydrotreaters or hydrocracker.
• Liquified gas storage units for propane and similar gaseous fuels at pressure sufficient to maintain in liquid form. These are usually spherical vessels or bullets (horizontal vessels with rounded ends.
• Storage tanks for crude oil and finished products, usually cylindrical, with some sort of vapor emission control and surrounded by an earthen berm to contain spills.
• Amine gas treater, Claus unit, and tail gas treatment for converting hydrogen sulfide from hydrodesulfurization into elemental sulfur.
• Utility units such as cooling towers for circulating cooling water, boiler plants for steam generation, instrument air systems for pneumatically operated control valves and an electrical substation.
• Wastewater collection and treating systems consisting of API separators, dissolved air flotation (DAF) units and some type of further treatment (such as an activated sludge biotreater) to make such water suitable for reuse or for disposal.
• Solvent refining units use solvent such as cresol or furfural to remove unwanted, mainly asphaltenic materials from lubricating oil stock (or diesel stock).
• Solvent dewaxing units remove the heavy waxy constituents petrolatum from vacuum distillation products.
EVANS ENERGY E2
Evans Energy E2 is an independent energy exploration, drilling and operating company specializing in oil and gas exploration. Our operations were founded two decades ago by Mr. S. Lavon Evans, Jr. in Mississippi and have grown to include Alabama, Louisiana and Texas. Our slogan, "Success From Positive Energy," is typical of our determination to succeed and our attitude to build on experience. Utilizing our own Drilling Rigs, Evans Energy retains more project control and can better respond to adverse conditions and circumstances that often plague the typical drilling project.
As a child Lavon Evans was greatly influenced by his grandfather who taught him the value of hard work and respect for everyone. Lavon's grandfather owned a small country store that became the foundation of Lavon's entrepreneurial spirit and work ethic. Evans Energy is today the result of that development of work, pride and fair play.
Our Goals
Evans Energy knows success is a team effort and not merely a cliché. The Evans team is always focused on the prize of a successful well and a financially successful operation. With over 400 commercial wells under our belt, we have succeeded in establishing processes that are proven and profitable. Evans Energy will continue to leverage past successes in order to develop new opportunities in all areas of the company's services which include exploration, operation and "contract" drilling.
Our Strategy
Evans Energy utilizes our years of drilling and operating experience to intelligently select those prospects with the most potential for commercial success. Evans Energy is continuously reviewing and streamlining all areas of the company with the objective of increasing efficiencies and enhancing profitability in oil and gas exploration and production.
• Increase Proven Domestic Reserves
Evans Energy is focused on increasing proven domestic reserves by exploring new fields and revisiting previously drilled fields with advanced technology that has proven effective in restoring or enhancing existing production. Creativity, ingenuity, experience and just plain hard work can always be used in the "oil patch" and these attributes are never in short supply at Evans Energy.
• Oil and Gas Investments
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and Gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
• Complex Energy Market
In this complex energy market, Evans Energy is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We work closely with industry experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
• Oil and Gas Investments
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and Gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
• Complex Energy Market
In this complex energy market, Evans Energy is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We work closely with industry experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Permian Asset Management (Permian Energy) is honoured to have Evans Energy E2 as an industry partner.
http://evansenergyonline.com/
http://permianco.com
As a child Lavon Evans was greatly influenced by his grandfather who taught him the value of hard work and respect for everyone. Lavon's grandfather owned a small country store that became the foundation of Lavon's entrepreneurial spirit and work ethic. Evans Energy is today the result of that development of work, pride and fair play.
Our Goals
Evans Energy knows success is a team effort and not merely a cliché. The Evans team is always focused on the prize of a successful well and a financially successful operation. With over 400 commercial wells under our belt, we have succeeded in establishing processes that are proven and profitable. Evans Energy will continue to leverage past successes in order to develop new opportunities in all areas of the company's services which include exploration, operation and "contract" drilling.
Our Strategy
Evans Energy utilizes our years of drilling and operating experience to intelligently select those prospects with the most potential for commercial success. Evans Energy is continuously reviewing and streamlining all areas of the company with the objective of increasing efficiencies and enhancing profitability in oil and gas exploration and production.
• Increase Proven Domestic Reserves
Evans Energy is focused on increasing proven domestic reserves by exploring new fields and revisiting previously drilled fields with advanced technology that has proven effective in restoring or enhancing existing production. Creativity, ingenuity, experience and just plain hard work can always be used in the "oil patch" and these attributes are never in short supply at Evans Energy.
• Oil and Gas Investments
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and Gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
• Complex Energy Market
In this complex energy market, Evans Energy is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We work closely with industry experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
• Oil and Gas Investments
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and Gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
• Complex Energy Market
In this complex energy market, Evans Energy is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We work closely with industry experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Permian Asset Management (Permian Energy) is honoured to have Evans Energy E2 as an industry partner.
http://evansenergyonline.com/
http://permianco.com
ENERMAX SURPASSES MAJOR MILESTONE
Permian Asset Management (Permian Energy) is very excited that our industry partner, EnerMax, Inc., the Texas-based oil and gas exploration company, announced that it had surpassed a major milestone, hitting the 1 million barrel mark in barrels of oil (BO) and barrels of oil equivalent (BOE) produced. Using advanced recovery techniques and effective resource management, EnerMax has increased the performance of its holdings to 1,100 BOE in daily production, with cumulative production now approximately 1,055,000 BOE.
The rapidly growing company, which marked its 8 year anniversary this year, expects production to rise by 200% over the next 12 months. "The supply squeeze we're seeing in the market right now is a surprise to many people, but we've been increasing our investments in new oil projects in terms of acreage, seismic acquisition and prospect generation over the past several years. We're ready," said Bret Boteler, founder and president of EnerMax. "Many companies are just beginning to react to market signals. They're running to catch up and get in the game. We've already laid the groundwork to rapidly grow our company without compromising the quality of our performance."
"Reaching a million barrels marked our entry into a new phase of operations. We're ready to capitalize on market trends while making a significant contribution to domestic energy production," he added.
Current activities are focused on utilizing two recently developed proprietary filtering processes to boost results in the Permian Basin - an area that accounts for approximately 20% of all U.S. production - and central west Texas. To date, EnerMax's most prominent filtering process has resulted in an 80 percent success rate in locating commercially productive oil and gas reservoirs. Roughly 13,000 acres held by EnerMax are scheduled for exploration and development in the next 4 years.
About EnerMax:
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
http://www.enermaxinc.com/
http://permianco.com
The rapidly growing company, which marked its 8 year anniversary this year, expects production to rise by 200% over the next 12 months. "The supply squeeze we're seeing in the market right now is a surprise to many people, but we've been increasing our investments in new oil projects in terms of acreage, seismic acquisition and prospect generation over the past several years. We're ready," said Bret Boteler, founder and president of EnerMax. "Many companies are just beginning to react to market signals. They're running to catch up and get in the game. We've already laid the groundwork to rapidly grow our company without compromising the quality of our performance."
"Reaching a million barrels marked our entry into a new phase of operations. We're ready to capitalize on market trends while making a significant contribution to domestic energy production," he added.
Current activities are focused on utilizing two recently developed proprietary filtering processes to boost results in the Permian Basin - an area that accounts for approximately 20% of all U.S. production - and central west Texas. To date, EnerMax's most prominent filtering process has resulted in an 80 percent success rate in locating commercially productive oil and gas reservoirs. Roughly 13,000 acres held by EnerMax are scheduled for exploration and development in the next 4 years.
About EnerMax:
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
http://www.enermaxinc.com/
http://permianco.com
ENERMAX, INC.
EnerMax, Inc. is an independent Texas oil and natural gas company specializing in the exploration and development of fossil fuel reserves. Our operations are focused on the petroleum rich regions of Texas and Louisiana. Our motto, "Exploring today for a better tomorrow," is more than just a tagline. It is our mission. We strive to increase proven domestic reserves, and we do this by exploring new fields and revisiting previously drilled areas to discover them anew with advanced technology.
Texas oil drilling is an historical endeavor - a necessary endeavor which we are proud to pursue. EnerMax is steeped in the culture of the Old West and the historical pursuit of one of the world's most important natural resources. Every step of our operations, from oil drilling to recovery, is handled by experts who respect this world-renowned Texas tradition.
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
In this complex energy market, EnerMax is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We have assembled a team of recognized experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Mission Statement
"Exploring today for a better tomorrow."
Company History
In 2001, Bret Boteler founded EnerMax, Inc. with a desire to set a new standard of quality for independent Texas oil and gas producers. Bret believed that communicating openly and frequently with his partners provided a better way of doing business. The partners agreed, and their support encouraged EnerMax to seek larger, more rewarding projects. As the company grew, Bret recruited talented, committed employees by creating a company profit sharing program that directly ties each employee to the success of each drilling project. As a result of his strategy, EnerMax has become an industry leader in Texas oil exploration, drilling and development.
EnerMax began by offering its partners the opportunity to participate in projects sponsored by its industry partners. This approach was well-received. However, in response to its partners' desires for more "direct-cost" projects, EnerMax began to explore in-house prospect generation.
Today, EnerMax has operations in Texas and Louisiana. Although future acquisitions are projected, our current holdings will provide us with enough prospects to drill consistently over the next 7-10 years. At EnerMax, we remain committed to our original vision and dedication to quality as we forge ahead to even greater success.
Guiding Principles
Family
We treat our partners and employees as family. Our family is important to us and each member receives the respect and attention they deserve. We work diligently to ensure that our partners receive value from all that we do. We invite into our family only intelligent, motivated and ethical employees who pursue excellence and growth. We provide tools and resources for each to grow both personally and professionally and we celebrate each person's success by rewarding them for their results.
Integrity
We conduct our daily lives always mindful to treat others as we wish to be treated. Each member of our family understands the importance of conducting themselves in accordance with the highest moral and ethical standards possible at work, at home and in our community.
Communication
We demand of ourselves the open and honest communication of our actions and intentions that all our partners deserve. We strive to foster an atmosphere of openness, accessibility, responsiveness and accountability in all of our communication throughout the organization.
Foresight
We commit ourselves to strengthening the value of our partners' holdings. To accomplish this, we react quickly to trends within the industry and strategically position ourselves to take advantage of new business opportunities. By investing alongside our partners, we also ensure that our focus is continually on the most profitable means of exploration, development, and recovery.
President – Bret Boteler
Bret Boteler, founder and President of EnerMax, Inc., has a diverse background in oil & gas exploration and development as well as other business activities. Mr. Boteler graduated from Southwest Texas State University with a BBA in Management. While there he participated in a Cooperative Education Program with General Dynamics, a major defense contractor based in Fort Worth, Texas. After graduating, Bret worked there for five years as a purchaser of high performance electronics for the F-16 Fighter. From 1991 to 1995, he worked for a local oil and gas firm that was involved in drilling vertical, horizontal and offshore wells. From 1996 to 1998, Bret served as Vice President of Client Relations for TBX Resources, a publicly traded oil and gas company specializing in production acquisition. In 1999, he founded Ghivit.com, Inc., a Dallas based company specializing in prepaid fuel and gift cards. In 2003, Ghivit.com was sold to a prominent Chicago-based company that dominates the prepaid fuel card industry. In 2001, Bret founded EnerMax, Inc. to capitalize on the growing demand for natural resources. Since then, he has been responsible for directing the company to develop two proprietary filtering processes which locate major oil deposits which were previously undetected by older technologies.
http://www.enermaxinc.com/
Permian Asset Management (Permian Energy) is proud to have EnerMax, Inc. is an industry partner.
http://permianco.com
Texas oil drilling is an historical endeavor - a necessary endeavor which we are proud to pursue. EnerMax is steeped in the culture of the Old West and the historical pursuit of one of the world's most important natural resources. Every step of our operations, from oil drilling to recovery, is handled by experts who respect this world-renowned Texas tradition.
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
In this complex energy market, EnerMax is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We have assembled a team of recognized experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Mission Statement
"Exploring today for a better tomorrow."
Company History
In 2001, Bret Boteler founded EnerMax, Inc. with a desire to set a new standard of quality for independent Texas oil and gas producers. Bret believed that communicating openly and frequently with his partners provided a better way of doing business. The partners agreed, and their support encouraged EnerMax to seek larger, more rewarding projects. As the company grew, Bret recruited talented, committed employees by creating a company profit sharing program that directly ties each employee to the success of each drilling project. As a result of his strategy, EnerMax has become an industry leader in Texas oil exploration, drilling and development.
EnerMax began by offering its partners the opportunity to participate in projects sponsored by its industry partners. This approach was well-received. However, in response to its partners' desires for more "direct-cost" projects, EnerMax began to explore in-house prospect generation.
Today, EnerMax has operations in Texas and Louisiana. Although future acquisitions are projected, our current holdings will provide us with enough prospects to drill consistently over the next 7-10 years. At EnerMax, we remain committed to our original vision and dedication to quality as we forge ahead to even greater success.
Guiding Principles
Family
We treat our partners and employees as family. Our family is important to us and each member receives the respect and attention they deserve. We work diligently to ensure that our partners receive value from all that we do. We invite into our family only intelligent, motivated and ethical employees who pursue excellence and growth. We provide tools and resources for each to grow both personally and professionally and we celebrate each person's success by rewarding them for their results.
Integrity
We conduct our daily lives always mindful to treat others as we wish to be treated. Each member of our family understands the importance of conducting themselves in accordance with the highest moral and ethical standards possible at work, at home and in our community.
Communication
We demand of ourselves the open and honest communication of our actions and intentions that all our partners deserve. We strive to foster an atmosphere of openness, accessibility, responsiveness and accountability in all of our communication throughout the organization.
Foresight
We commit ourselves to strengthening the value of our partners' holdings. To accomplish this, we react quickly to trends within the industry and strategically position ourselves to take advantage of new business opportunities. By investing alongside our partners, we also ensure that our focus is continually on the most profitable means of exploration, development, and recovery.
President – Bret Boteler
Bret Boteler, founder and President of EnerMax, Inc., has a diverse background in oil & gas exploration and development as well as other business activities. Mr. Boteler graduated from Southwest Texas State University with a BBA in Management. While there he participated in a Cooperative Education Program with General Dynamics, a major defense contractor based in Fort Worth, Texas. After graduating, Bret worked there for five years as a purchaser of high performance electronics for the F-16 Fighter. From 1991 to 1995, he worked for a local oil and gas firm that was involved in drilling vertical, horizontal and offshore wells. From 1996 to 1998, Bret served as Vice President of Client Relations for TBX Resources, a publicly traded oil and gas company specializing in production acquisition. In 1999, he founded Ghivit.com, Inc., a Dallas based company specializing in prepaid fuel and gift cards. In 2003, Ghivit.com was sold to a prominent Chicago-based company that dominates the prepaid fuel card industry. In 2001, Bret founded EnerMax, Inc. to capitalize on the growing demand for natural resources. Since then, he has been responsible for directing the company to develop two proprietary filtering processes which locate major oil deposits which were previously undetected by older technologies.
http://www.enermaxinc.com/
Permian Asset Management (Permian Energy) is proud to have EnerMax, Inc. is an industry partner.
http://permianco.com
DRILLING RIGS
Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://permianco.com
Overview
A drilling rig is a machine which creates holes (usually called boreholes) and/or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells or they can be small enough to be moved manually by one person. They sample sub-surface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called 'offshore oil rigs' even if they don't contain a drilling rig). The term "rig" therefore generally refers to the complex of equipment that is used to penetrate the surface of the earth's crust.
Drilling rigs can be:
• Small and portable, such as those used in mineral exploration drilling, water wells and environmental investigations.
• Huge, capable of drilling through thousands of meters of the Earth's crust. Large "mud pumps" circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate many hundreds of miles or kilometres distant from the supply base with infrequent crew rotation.
Petroleum Drilling Industry
Oil and Natural Gas drilling rigs can be used not only to identify geologic reservoirs but also to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line. This frees up the drilling rig to drill another hole and streamlines the operation as well as allowing for specialization of certain services, i.e., completions vs. drilling.
History
Until internal combustion engines came in the late 19th century, the main method for drilling rock was muscle power of man or animal. Rods were turned by hand, using clamps attached to the rod. The rope and drop method invented in Zigong, China used a steel rod or piston raised and dropped vertically via a rope. Mechanised versions of this persisted until about 1970, using a cam to rapidly raise and drop what, by then, was a steel cable.
In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first efficient pneumatic reciprocating piston Reverse Circulation RC drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.
Mobile Drilling Rigs
In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.
Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 ton continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.
The drilling mechanisms outlined below differ mechanically in terms of the machinery used, but also in terms of the method by which drill cuttings are removed from the cutting face of the drill and returned to surface.
Drilling Rig Classification
There are many types and designs of drilling rigs, with many drilling rigs capable of switching or combining different drilling technologies as needed. Drilling rigs can be described using any of the following attributes:
by power used
• mechanical - the rig uses torque converters, clutches, and transmissions powered by its own engines, often diesel
• electric - the major items of machinery are driven by electric motors, usually with power generated on-site using internal combustion engines
• hydraulic - the rig primarily uses hydraulic power
• pneumatic - the rig is primarily powered by pressurized air
• steam - the rig uses steam-powered engines and pumps (obsolescent after middle of 20th Century)
by pipe used
• cable - a cable is used to raise and drop the drill bit
• conventional - uses metal or plastic drill pipe of varying types
• coil tubing - uses a giant coil of tube and a downhole drilling motor
by height
• single - can drill only single drill pipes. The presence or absence of vertical pipe racking "fingers" varies from rig to rig.
• double - can hold a stand of pipe in the derrick consisting of two connected drill pipes, called a "double stand".
• triple - can hold a stand of pipe in the derrick consisting of three connected drill pipes, called a "triple stand".by method of rotation or drilling method
• no rotation includes direct push rigs and most service rigs
• rotary table - rotation is achieved by turning a square or hexagonal pipe (the kelly) at drill floor level.
• top-drive - rotation and circulation is done at the top of the drillstring, on a motor that moves in a track along the derrick.
• sonic - uses primarily vibratory energy to advance the drill string
• hammer - uses rotation and percussive force
by position of derrick
• conventional - derrick is vertical
• slant - derrick is slanted at a 45 degree angle to facilitate horizontal drilling
Limits of the Technology
Drill technology has advanced steadily since the 19th century. However, there are several basic limiting factors which will determine the depth to which a bore hole can be sunk.
All holes must maintain outer diameter; the diameter of the hole must remain wider than the diameter of the rods or the rods cannot turn in the hole and progress cannot continue. Friction caused by the drilling operation will tend to reduce the outside diameter of the drill bit. This applies to all drilling methods, except that in diamond core drilling the use of thinner rods and casing may permit the hole to continue. Casing is simply a hollow sheath which protects the hole against collapse during drilling, and is made of metal or PVC. Often diamond holes will start off at a large diameter and when outside diameter is lost, thinner rods put down inside casing to continue, until finally the hole becomes too narrow. Alternatively, the hole can be reamed; this is the usual practice in oil well drilling where the hole size is maintained down to the next casing point.
For percussion techniques, the main limitation is air pressure. Air must be delivered to the piston at sufficient pressure to activate the reciprocating action, and in turn drive the head into the rock with sufficient strength to fracture and pulverise it. With depth, volume is added to the in-rod string, requiring larger compressors to achieve operational pressures. Secondly, groundwater is ubiquitous, and increases in pressure with depth in the ground. The air inside the rod string must be pressurised enough to overcome this water pressure at the bit face. Then, the air must be able to carry the rock fragments to surface. This is why depths in excess of 500 m for reverse circulation drilling are rarely achieved, because the cost is prohibitive and approaches the threshold at which diamond core drilling is more economic.
Diamond drilling can routinely achieve depths in excess of 1200 m. In cases where money is no issue, extreme depths have been achieved because there is no requirement to overcome water pressure. However, circulation must be maintained to return the drill cuttings to surface, and more importantly to maintain cooling and lubrication of the cutting surface. Without sufficient lubrication and cooling, the matrix of the drill bit will soften. While diamond is one of the hardest substances known, at 10 on the Mohs hardness scale, it must remain firmly in the matrix to achieve cutting. Weight on bit, the force exerted on the cutting face of the bit by the drill rods in the hole above the bit, must also be monitored.
http://permianco.com
Overview
A drilling rig is a machine which creates holes (usually called boreholes) and/or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells or they can be small enough to be moved manually by one person. They sample sub-surface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called 'offshore oil rigs' even if they don't contain a drilling rig). The term "rig" therefore generally refers to the complex of equipment that is used to penetrate the surface of the earth's crust.
Drilling rigs can be:
• Small and portable, such as those used in mineral exploration drilling, water wells and environmental investigations.
• Huge, capable of drilling through thousands of meters of the Earth's crust. Large "mud pumps" circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate many hundreds of miles or kilometres distant from the supply base with infrequent crew rotation.
Petroleum Drilling Industry
Oil and Natural Gas drilling rigs can be used not only to identify geologic reservoirs but also to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line. This frees up the drilling rig to drill another hole and streamlines the operation as well as allowing for specialization of certain services, i.e., completions vs. drilling.
History
Until internal combustion engines came in the late 19th century, the main method for drilling rock was muscle power of man or animal. Rods were turned by hand, using clamps attached to the rod. The rope and drop method invented in Zigong, China used a steel rod or piston raised and dropped vertically via a rope. Mechanised versions of this persisted until about 1970, using a cam to rapidly raise and drop what, by then, was a steel cable.
In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first efficient pneumatic reciprocating piston Reverse Circulation RC drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.
Mobile Drilling Rigs
In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.
Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 ton continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.
The drilling mechanisms outlined below differ mechanically in terms of the machinery used, but also in terms of the method by which drill cuttings are removed from the cutting face of the drill and returned to surface.
Drilling Rig Classification
There are many types and designs of drilling rigs, with many drilling rigs capable of switching or combining different drilling technologies as needed. Drilling rigs can be described using any of the following attributes:
by power used
• mechanical - the rig uses torque converters, clutches, and transmissions powered by its own engines, often diesel
• electric - the major items of machinery are driven by electric motors, usually with power generated on-site using internal combustion engines
• hydraulic - the rig primarily uses hydraulic power
• pneumatic - the rig is primarily powered by pressurized air
• steam - the rig uses steam-powered engines and pumps (obsolescent after middle of 20th Century)
by pipe used
• cable - a cable is used to raise and drop the drill bit
• conventional - uses metal or plastic drill pipe of varying types
• coil tubing - uses a giant coil of tube and a downhole drilling motor
by height
• single - can drill only single drill pipes. The presence or absence of vertical pipe racking "fingers" varies from rig to rig.
• double - can hold a stand of pipe in the derrick consisting of two connected drill pipes, called a "double stand".
• triple - can hold a stand of pipe in the derrick consisting of three connected drill pipes, called a "triple stand".by method of rotation or drilling method
• no rotation includes direct push rigs and most service rigs
• rotary table - rotation is achieved by turning a square or hexagonal pipe (the kelly) at drill floor level.
• top-drive - rotation and circulation is done at the top of the drillstring, on a motor that moves in a track along the derrick.
• sonic - uses primarily vibratory energy to advance the drill string
• hammer - uses rotation and percussive force
by position of derrick
• conventional - derrick is vertical
• slant - derrick is slanted at a 45 degree angle to facilitate horizontal drilling
Limits of the Technology
Drill technology has advanced steadily since the 19th century. However, there are several basic limiting factors which will determine the depth to which a bore hole can be sunk.
All holes must maintain outer diameter; the diameter of the hole must remain wider than the diameter of the rods or the rods cannot turn in the hole and progress cannot continue. Friction caused by the drilling operation will tend to reduce the outside diameter of the drill bit. This applies to all drilling methods, except that in diamond core drilling the use of thinner rods and casing may permit the hole to continue. Casing is simply a hollow sheath which protects the hole against collapse during drilling, and is made of metal or PVC. Often diamond holes will start off at a large diameter and when outside diameter is lost, thinner rods put down inside casing to continue, until finally the hole becomes too narrow. Alternatively, the hole can be reamed; this is the usual practice in oil well drilling where the hole size is maintained down to the next casing point.
For percussion techniques, the main limitation is air pressure. Air must be delivered to the piston at sufficient pressure to activate the reciprocating action, and in turn drive the head into the rock with sufficient strength to fracture and pulverise it. With depth, volume is added to the in-rod string, requiring larger compressors to achieve operational pressures. Secondly, groundwater is ubiquitous, and increases in pressure with depth in the ground. The air inside the rod string must be pressurised enough to overcome this water pressure at the bit face. Then, the air must be able to carry the rock fragments to surface. This is why depths in excess of 500 m for reverse circulation drilling are rarely achieved, because the cost is prohibitive and approaches the threshold at which diamond core drilling is more economic.
Diamond drilling can routinely achieve depths in excess of 1200 m. In cases where money is no issue, extreme depths have been achieved because there is no requirement to overcome water pressure. However, circulation must be maintained to return the drill cuttings to surface, and more importantly to maintain cooling and lubrication of the cutting surface. Without sufficient lubrication and cooling, the matrix of the drill bit will soften. While diamond is one of the hardest substances known, at 10 on the Mohs hardness scale, it must remain firmly in the matrix to achieve cutting. Weight on bit, the force exerted on the cutting face of the bit by the drill rods in the hole above the bit, must also be monitored.
Thursday, October 1, 2009
CRACKING OIL
Permian Asset Management (Permian Energy) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
http://permianco.com
Overview
In petroleum geology and chemistry, cracking is the process whereby complex organic molecules such as kerogens or heavy hydrocarbons are broken down into simpler molecules (e.g. light hydrocarbons) by the breaking of carbon-carbon bonds in the precursors. The rate of cracking and the end products are strongly dependent on the temperature and presence of any catalysts. Cracking, also referred to as pyrolysis, is the breakdown of a large alkane into smaller, more useful alkanes and an alkene. Simply put, hydrocarbons cracking is the process of breaking long chain hydrocarbons into short ones.
History
In 1855, petroleum cracking methods were pioneered by American chemistry professor, Benjamin Silliman, Jr., of Sheffield Scientific School (SSS) at Yale University.
The first thermal cracking method, the Shukhov cracking process, was invented by Russian engineer Vladimir Shukhov, in the Russian empire, Patent No. 12926, November 27, 1891.
Eugene Houdry, a French mechanical engineer, pioneered catalytic cracking and developed the first commercially successful process after emigrating to the United States. The first commercial plant was built in 1936. His process doubled the amount of gasoline that could be produced from a barrel of crude oil.
Applications
Oil refinery cracking processes allow the production of "light" products such as LPG and gasoline from heavier crude oil distillation fractions such as gas oils and residues. Fluid catalytic cracking produces a high yield of gasoline and LPG, while hydrocracking is a major source of jet fuel, diesel, naphtha and LPG.
Thermal cracking is currently used to "upgrade" very heavy fractions ("upgrading", "visbreaking"), or to produce light fractions or distillates, burner fuel and/or petroleum coke. Two extremes of the thermal cracking in terms of product range are represented by the high-temperature process called "steam cracking" or pyrolysis (ca. 750 to 900 °C or more) which produces valuable ethylene and other feedstocks for the petrochemical industry, and the milder-temperature delayed coking (ca. 500 °C) which can produce, under the right conditions, valuable needle coke, a highly crystalline petroleum coke used in the production of electrodes for the steel and aluminium industries.
http://permianco.com
Overview
In petroleum geology and chemistry, cracking is the process whereby complex organic molecules such as kerogens or heavy hydrocarbons are broken down into simpler molecules (e.g. light hydrocarbons) by the breaking of carbon-carbon bonds in the precursors. The rate of cracking and the end products are strongly dependent on the temperature and presence of any catalysts. Cracking, also referred to as pyrolysis, is the breakdown of a large alkane into smaller, more useful alkanes and an alkene. Simply put, hydrocarbons cracking is the process of breaking long chain hydrocarbons into short ones.
History
In 1855, petroleum cracking methods were pioneered by American chemistry professor, Benjamin Silliman, Jr., of Sheffield Scientific School (SSS) at Yale University.
The first thermal cracking method, the Shukhov cracking process, was invented by Russian engineer Vladimir Shukhov, in the Russian empire, Patent No. 12926, November 27, 1891.
Eugene Houdry, a French mechanical engineer, pioneered catalytic cracking and developed the first commercially successful process after emigrating to the United States. The first commercial plant was built in 1936. His process doubled the amount of gasoline that could be produced from a barrel of crude oil.
Applications
Oil refinery cracking processes allow the production of "light" products such as LPG and gasoline from heavier crude oil distillation fractions such as gas oils and residues. Fluid catalytic cracking produces a high yield of gasoline and LPG, while hydrocracking is a major source of jet fuel, diesel, naphtha and LPG.
Thermal cracking is currently used to "upgrade" very heavy fractions ("upgrading", "visbreaking"), or to produce light fractions or distillates, burner fuel and/or petroleum coke. Two extremes of the thermal cracking in terms of product range are represented by the high-temperature process called "steam cracking" or pyrolysis (ca. 750 to 900 °C or more) which produces valuable ethylene and other feedstocks for the petrochemical industry, and the milder-temperature delayed coking (ca. 500 °C) which can produce, under the right conditions, valuable needle coke, a highly crystalline petroleum coke used in the production of electrodes for the steel and aluminium industries.
ARUBA
Permian Asset Management (Permian Energy) thought you might be interested in learning a little bit about Aruba. We hope we will see you here one day soon.
http://permianco.com
Aruba is a 33 km (21 mi) long island of the Lesser Antilles in the southern Caribbean Sea, 27 km (17 mi) north of Venezuela. It has a land area of 193 km2 (75 sq mi) and lies outside the hurricane belt. Together with Bonaire and Curaçao it forms a group referred to as the ABC islands of the Leeward Antilles, the southern island chain of the Lesser Antilles. An autonomous region within the Kingdom of the Netherlands, Aruba has no administrative subdivisions.
Unlike much of the Caribbean region, Aruba has a dry climate and an arid, cactus-strewn landscape. This climate has helped tourism as visitors to the island can reliably expect warm, sunny weather. Aruba is renowned for its white, sandy beaches on the western and southern coasts of the island, relatively sheltered from fierce ocean currents, and this is where most tourist development has taken place. Temperature varies little from 28 °C (82 °F), moderated by constant trade winds from the Atlantic Ocean. Yearly precipitation barely reaches 500 mm (20 in), most of it falling in late autumn.
Aruba's first inhabitants are thought to have been Caquetíos Amerinds from the Arawak tribe, who migrated there from Venezuela to escape attacks by the Caribs. Fragments of the earliest known Indian settlements date back from 1,000 AD. Sea currents made canoe travel to other Caribbean islands difficult, thus Caquetio culture remained closer to that of mainland South America.
Aruba enjoys one of the highest standards of living in the Caribbean region; the low unemployment rate is also positive for Aruba. About three quarters of the Aruban gross national product is earned through tourism or related activities. Most of the tourists are from Venezuela and the United States, Aruba's largest trading partners. Before the "Status Aparte", (a separate completely autonomous country/state within the Kingdom), oil processing was the dominant industry in Aruba. The G.D.P. per capita for Aruba is calculated to be $23,831 in 2007; among the highest in the Caribbean and the Americas. Its main trading partners are Venezuela, The U.S and the Netherlands.
Language can be seen as an important part of island culture in Aruba. The cultural mixture has given rise to a linguistic mixture known as Papiamento, the predominant language on Aruba. The two official languages are the Dutch language and Papiamento. Papiamento is a language that has been evolving through the centuries and absorbed many words from other languages like Dutch, English, French, diverse African dialects, and most importantly, from Portuguese and Spanish. However, like many islands in the region, Spanish is also often spoken.
The holiday of Carnival is an important one in Aruba, as it is in many Caribbean and Latin American countries, and, like Mardi Gras, that goes on for weeks. Its celebration in Aruba started, around the 1950s, influenced by the inhabitants from the nearby islands who came to work for the oil refinery. Over the years the Carnival Celebration has changed and now starts from the beginning of January till the Tuesday before Ash Wednesday with a large parade on the last Sunday of the festivities.
Aruba boasts the world's third largest desalination plant which produces potable industrial water. Average daily consumption in 2005 was about 37,043 metric tons.
http://permianco.com
Aruba is a 33 km (21 mi) long island of the Lesser Antilles in the southern Caribbean Sea, 27 km (17 mi) north of Venezuela. It has a land area of 193 km2 (75 sq mi) and lies outside the hurricane belt. Together with Bonaire and Curaçao it forms a group referred to as the ABC islands of the Leeward Antilles, the southern island chain of the Lesser Antilles. An autonomous region within the Kingdom of the Netherlands, Aruba has no administrative subdivisions.
Unlike much of the Caribbean region, Aruba has a dry climate and an arid, cactus-strewn landscape. This climate has helped tourism as visitors to the island can reliably expect warm, sunny weather. Aruba is renowned for its white, sandy beaches on the western and southern coasts of the island, relatively sheltered from fierce ocean currents, and this is where most tourist development has taken place. Temperature varies little from 28 °C (82 °F), moderated by constant trade winds from the Atlantic Ocean. Yearly precipitation barely reaches 500 mm (20 in), most of it falling in late autumn.
Aruba's first inhabitants are thought to have been Caquetíos Amerinds from the Arawak tribe, who migrated there from Venezuela to escape attacks by the Caribs. Fragments of the earliest known Indian settlements date back from 1,000 AD. Sea currents made canoe travel to other Caribbean islands difficult, thus Caquetio culture remained closer to that of mainland South America.
Aruba enjoys one of the highest standards of living in the Caribbean region; the low unemployment rate is also positive for Aruba. About three quarters of the Aruban gross national product is earned through tourism or related activities. Most of the tourists are from Venezuela and the United States, Aruba's largest trading partners. Before the "Status Aparte", (a separate completely autonomous country/state within the Kingdom), oil processing was the dominant industry in Aruba. The G.D.P. per capita for Aruba is calculated to be $23,831 in 2007; among the highest in the Caribbean and the Americas. Its main trading partners are Venezuela, The U.S and the Netherlands.
Language can be seen as an important part of island culture in Aruba. The cultural mixture has given rise to a linguistic mixture known as Papiamento, the predominant language on Aruba. The two official languages are the Dutch language and Papiamento. Papiamento is a language that has been evolving through the centuries and absorbed many words from other languages like Dutch, English, French, diverse African dialects, and most importantly, from Portuguese and Spanish. However, like many islands in the region, Spanish is also often spoken.
The holiday of Carnival is an important one in Aruba, as it is in many Caribbean and Latin American countries, and, like Mardi Gras, that goes on for weeks. Its celebration in Aruba started, around the 1950s, influenced by the inhabitants from the nearby islands who came to work for the oil refinery. Over the years the Carnival Celebration has changed and now starts from the beginning of January till the Tuesday before Ash Wednesday with a large parade on the last Sunday of the festivities.
Aruba boasts the world's third largest desalination plant which produces potable industrial water. Average daily consumption in 2005 was about 37,043 metric tons.
LOS DOS APACHES #6 A GREAT SUCCESS
The Los Dos Apaches #6 Joint Venture Project is selling gas, proving once again that Permian Asset Management, AVV is a great choice for oil and gas investments.
The Los Dos Apaches #6 Joint Venture Project hit gas in February 2009 and is now producing and on the way to market. Following their success in December of 2007, with the Bigger Badder Wolf Project and again in September 2008 with West Janice #1 and then West Janice #2 shortly thereafter, Permian Asset Management, AVV and their Industry Partners are happy to announce the sales of this very productive strike; proving once again that Permian Asset Management, AVV is a great choice for oil and gas investments.
A spokesperson of Permian Asset Management, AVV, when questioned about Los Dos Apaches #6 had this to say. "Between 11:00 and 12:00 on April 18th Los Dos Apaches #6 went to sales. The well had a shut in tubing pressure of 1400 lbs. and it is now flowing on a 14/64th choke. Gas is flowing through all lines and pressuring up production vessels. Our partners will be monitoring the well and getting the flow rates stabilized and then they can gauge and report on progress daily. It is too early to know field rates until the well has been on line a while longer."
Permian Asset Management’s philosophy is to add value and be accordingly rewarded, this has proven to be our simple yet successful formula throughout the years.
Our expertise and excellent reputation provides a solid ground to build-up continuously long term relationships with our industry partners and customers, and allows us to expand our business horizons.
Our ethos, our fundamental and distinctive character taken within a social context, is an attitude of team spirit and unquestionable ethics. We strictly adhere to proper business practices and traditionally conservative business beliefs.
We strive to provide our clients with the most ethical financial investment services.
We endeavour to be fair, empathetic and responsive in serving our clients.
We know we must always earn and be worthy of our clients' trust.
Permian Asset Management is dedicated to making a positive contribution to society through our focus on the environment, our people, responsible business practices, community investment and by strengthening the next generation. Since our company was established and thrives on the key acumen of doing first-class business in a first-class way, we take the grander view that the way business is done means a lot to our clients.
Our world view, and global citizenship, is a direct manifestation of Permian Asset Management’s core values and augments our ability to provide superior service to our clients, our employees and the communities where we invest, work and choose to live.
Permian Asset Management is committed to doing its share as a conscientious corporation by improving the quality of life in the communities that we touch.
We strive to apply our intellectual capital towards addressing issues of global concern that may be side-effects of our industry, and to mitigate these issues to the greatest degree.
Our people are Permian Asset Management's cornerstone, our distinct competitive advantage and our future.
We work each day with respect for our firm, our industry and the world in which we conduct business.
Sincerely,
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: https://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
The Los Dos Apaches #6 Joint Venture Project hit gas in February 2009 and is now producing and on the way to market. Following their success in December of 2007, with the Bigger Badder Wolf Project and again in September 2008 with West Janice #1 and then West Janice #2 shortly thereafter, Permian Asset Management, AVV and their Industry Partners are happy to announce the sales of this very productive strike; proving once again that Permian Asset Management, AVV is a great choice for oil and gas investments.
A spokesperson of Permian Asset Management, AVV, when questioned about Los Dos Apaches #6 had this to say. "Between 11:00 and 12:00 on April 18th Los Dos Apaches #6 went to sales. The well had a shut in tubing pressure of 1400 lbs. and it is now flowing on a 14/64th choke. Gas is flowing through all lines and pressuring up production vessels. Our partners will be monitoring the well and getting the flow rates stabilized and then they can gauge and report on progress daily. It is too early to know field rates until the well has been on line a while longer."
:: Company Philosophy and Ethos ::
Permian Asset Management’s philosophy is to add value and be accordingly rewarded, this has proven to be our simple yet successful formula throughout the years.
Our expertise and excellent reputation provides a solid ground to build-up continuously long term relationships with our industry partners and customers, and allows us to expand our business horizons.
Our ethos, our fundamental and distinctive character taken within a social context, is an attitude of team spirit and unquestionable ethics. We strictly adhere to proper business practices and traditionally conservative business beliefs.
We strive to provide our clients with the most ethical financial investment services.
We endeavour to be fair, empathetic and responsive in serving our clients.
We know we must always earn and be worthy of our clients' trust.
:: Community Commitment ::
Permian Asset Management is dedicated to making a positive contribution to society through our focus on the environment, our people, responsible business practices, community investment and by strengthening the next generation. Since our company was established and thrives on the key acumen of doing first-class business in a first-class way, we take the grander view that the way business is done means a lot to our clients.
Our world view, and global citizenship, is a direct manifestation of Permian Asset Management’s core values and augments our ability to provide superior service to our clients, our employees and the communities where we invest, work and choose to live.
Permian Asset Management is committed to doing its share as a conscientious corporation by improving the quality of life in the communities that we touch.
We strive to apply our intellectual capital towards addressing issues of global concern that may be side-effects of our industry, and to mitigate these issues to the greatest degree.
Our people are Permian Asset Management's cornerstone, our distinct competitive advantage and our future.
We work each day with respect for our firm, our industry and the world in which we conduct business.
Sincerely,
:: Management ::
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: https://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
WEST BORE REVEALS A LOT OF POTENTIAL PAY
In our continuing effort to keep all of our partners in the loop, regarding the progress of West Janice #1 Joint Venture Project, we have decided to make you all privy to this email from our partner Bret Boteler of EnerMax, Inc. regarding a report from a Halliburton West Texas Specialist, that shows the potential of this high quality area where West Janice #1 is positioned.
RockVision Electric Log
By: Bret Boteler -
Partners,
Attached you will find the RockVision Log from Halliburton that was compiled by a Halliburton West Texas Specialist. It is a very large file and will most likely only be opened with Paint (software program).
The log is fairly simple to read. The easiest way to understand it is to look in the center of the page at the legend on the heading. Focus on the column labeled "metric Sand Ana". This stands for Volumetric Sand Analysis.
In this column you will see green and red shaded areas which represent hydrocarbons. The addition of blue means there is water present. Three columns over you will see a heading labeled Gross/Net Pay. The areas in red represent the most potentially productive areas of our well bore. Correlate these red areas of Gross/Net Pay with the red and green areas of the "metric Sand Ana". These are the areas picked by Halliburton to be of the highest quality.
Footages to look at: (footages are marked on the left side of the log)
5,150 - 5,400' (San Andres)
9,450 - 10,550' (Wolfcamp)
11,340 - 11,400' (1st Devonian)
11,410 -11,440' (2nd Devonian)
Bottom line is we have an incredible looking well bore with a lot of potential pay.
I will try to scan the separate sections of potential pay and post them up on the website early next week.
Enjoy your holiday weekend.
Regards,
Bret Boteler
President
As promised Bret has converted the log files to Adobe format and we have conveniently placed them on our secure server for you to download and view. Here are the relevant links.
(PLEASE NOTE: These are very large files, and can take a considerable amount of time to download depending on your Internet connection so we have created a condensed version that is also optimized and annotated. It is download "1" below. The annotations make reference to Bret's comments in his follow-up letter, which is also included in the beginning of this condensed version.)
If you do not have the Adobe software program to view this type of document you may download the free Adobe Reader software from the official Adobe Website here:
If you experience any difficulties viewing, printing, completing, or returning these documents to us, please do not hesitate to contact our Administration Team by replying to this email address:
We hope this information has been informative and helpful towards keeping you up-to-date on the West Janice #1 Project.
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: https://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
RockVision Electric Log
By: Bret Boteler -
Partners,
Attached you will find the RockVision Log from Halliburton that was compiled by a Halliburton West Texas Specialist. It is a very large file and will most likely only be opened with Paint (software program).
The log is fairly simple to read. The easiest way to understand it is to look in the center of the page at the legend on the heading. Focus on the column labeled "metric Sand Ana". This stands for Volumetric Sand Analysis.
In this column you will see green and red shaded areas which represent hydrocarbons. The addition of blue means there is water present. Three columns over you will see a heading labeled Gross/Net Pay. The areas in red represent the most potentially productive areas of our well bore. Correlate these red areas of Gross/Net Pay with the red and green areas of the "metric Sand Ana". These are the areas picked by Halliburton to be of the highest quality.
Footages to look at: (footages are marked on the left side of the log)
5,150 - 5,400' (San Andres)
9,450 - 10,550' (Wolfcamp)
11,340 - 11,400' (1st Devonian)
11,410 -11,440' (2nd Devonian)
Bottom line is we have an incredible looking well bore with a lot of potential pay.
I will try to scan the separate sections of potential pay and post them up on the website early next week.
Enjoy your holiday weekend.
Regards,
Bret Boteler
President
As promised Bret has converted the log files to Adobe format and we have conveniently placed them on our secure server for you to download and view. Here are the relevant links.
(PLEASE NOTE: These are very large files, and can take a considerable amount of time to download depending on your Internet connection so we have created a condensed version that is also optimized and annotated. It is download "1" below. The annotations make reference to Bret's comments in his follow-up letter, which is also included in the beginning of this condensed version.)
1. http://www.permianco.com/investors/downloads/rock.vision.logs.combined.annotated.pdf
2. http://www.permianco.com/investors/downloads/devonian.log.section.west.janice.1.pdf
3. http://www.permianco.com/investors/downloads/wolfcamp.log.section.west.janice.1.pdf
4. http://www.permianco.com/investors/downloads/san.andres.log.section.west.janice.1.pdf
5.http://www.permianco.com/investors/downloads/woodford.shale.log.section.west.janice.1.pdf
If you do not have the Adobe software program to view this type of document you may download the free Adobe Reader software from the official Adobe Website here:
http://www.adobe.com/products/acrobat/readstep2.html
If you experience any difficulties viewing, printing, completing, or returning these documents to us, please do not hesitate to contact our Administration Team by replying to this email address:
admin@permianco.com or by faxing them to + 297.588.9665.
We hope this information has been informative and helpful towards keeping you up-to-date on the West Janice #1 Project.
:: Management ::
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: https://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
WE'VE HIT OIL AGAIN!
WE'VE HIT OIL AGAIN - WEST JANICE #1 A SUCCESS
The West Janice #1 Joint Venture Project has struck oil in the 1st Devonian as well as the Wolfcamp formation proving once again that Permian Asset Management, AVV is a great choice for oil and gas investment.
Boca Raton, FL - September 5, 2008 -- The West Janice #1 Joint Venture Project has struck oil in the 1st Devonian as well as the Wolfcamp formation. Following their success in December of 2007, with the Bigger Badder Wolf Project, West Janice #1 is poised to be an even more productive strike proving once again that Permian Asset Management, AVV is a great choice for oil and gas investment.
The company's spokesperson , when questioned about the potential of this strike had this to say. "West Janice #1 is a great success for us and for our partners. We knew from the initial seismic data and 3-D imaging that we had some great potential exhibited in the West Janice area, but to say we are simply pleased with the proven result would be an understatement. We are continuing to analyze the data coming from the drill site and we will soon know the true enormity of this particular venture."
Permian is currently checking all the data from the recent FMI (Formation Microresistivity Imager) and Permian's technical team is more than confident they have a commercially productive well in the ABO and San Andres pay zones as well. This most recent discovery and strike help to reinforce the belief in a very large regional trend which will increase Permian and its partners niche in the Texas drilling industry and the American oil investment market as well.
Permian Asset Management is one North America’s leading independent brokers of Oil Well Joint Venture Partnerships. Our projects and, our partners’ projects, to date have realized in excess of a hundred million barrels petrochemical product.
Our staffs are experts in their field with backgrounds in venture capital, major oil companies, well drillers, rig and pumping operators and petrochemical marketers.
Permian Energy is a private concern, and all its owners are active employees of the company.
Permian Asset Management’s philosophy is to add value and be accordingly rewarded � this has proven to be our simple yet successful formula throughout the years.
Our expertise and excellent reputation provides a solid ground to build-up continuously long term relationships with our industry partners and customers, and allows us to expand our business horizons.
Our ethos, our fundamental and distinctive character taken within a social context, is an attitude of team spirit and unquestionable ethics. We strictly adhere to proper business practices and traditionally conservative business beliefs.
We strive to provide our clients with the most ethical financial investment services.
We endeavour to be fair, empathetic and responsive in serving our clients.
We know we must always earn and be worthy of our clients' trust.
Permian Asset Management is dedicated to making a positive contribution to society through our focus on the environment, our people, responsible business practices, community investment and by strengthening the next generation. Since our company was established and thrives on the key acumen of doing first-class business in a first-class way, we take the grander view that the way business is done means a lot to our clients.
Our world view, and global citizenship, is a direct manifestation of Permian Asset Management’s core values and augments our ability to provide superior service to our clients, our employees and the communities where we invest, work and choose to live.
Permian Asset Management is committed to doing its share as a conscientious corporation by improving the quality of life in the communities that we touch.
We strive to apply our intellectual capital towards addressing issues of global concern that may be side-effects of our industry, and to mitigate these issues to the greatest degree.
Our people are Permian Asset Management's cornerstone, our distinct competitive advantage and our future.
We work each day with respect for our firm, our industry and the world in which we conduct business.
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
The West Janice #1 Joint Venture Project has struck oil in the 1st Devonian as well as the Wolfcamp formation proving once again that Permian Asset Management, AVV is a great choice for oil and gas investment.
Boca Raton, FL - September 5, 2008 -- The West Janice #1 Joint Venture Project has struck oil in the 1st Devonian as well as the Wolfcamp formation. Following their success in December of 2007, with the Bigger Badder Wolf Project, West Janice #1 is poised to be an even more productive strike proving once again that Permian Asset Management, AVV is a great choice for oil and gas investment.
The company's spokesperson , when questioned about the potential of this strike had this to say. "West Janice #1 is a great success for us and for our partners. We knew from the initial seismic data and 3-D imaging that we had some great potential exhibited in the West Janice area, but to say we are simply pleased with the proven result would be an understatement. We are continuing to analyze the data coming from the drill site and we will soon know the true enormity of this particular venture."
Permian is currently checking all the data from the recent FMI (Formation Microresistivity Imager) and Permian's technical team is more than confident they have a commercially productive well in the ABO and San Andres pay zones as well. This most recent discovery and strike help to reinforce the belief in a very large regional trend which will increase Permian and its partners niche in the Texas drilling industry and the American oil investment market as well.
:: About Permian Asset Management, AVV ::
Permian Asset Management is one North America’s leading independent brokers of Oil Well Joint Venture Partnerships. Our projects and, our partners’ projects, to date have realized in excess of a hundred million barrels petrochemical product.
Our staffs are experts in their field with backgrounds in venture capital, major oil companies, well drillers, rig and pumping operators and petrochemical marketers.
Permian Energy is a private concern, and all its owners are active employees of the company.
:: Company Philosophy and Ethos ::
Permian Asset Management’s philosophy is to add value and be accordingly rewarded � this has proven to be our simple yet successful formula throughout the years.
Our expertise and excellent reputation provides a solid ground to build-up continuously long term relationships with our industry partners and customers, and allows us to expand our business horizons.
Our ethos, our fundamental and distinctive character taken within a social context, is an attitude of team spirit and unquestionable ethics. We strictly adhere to proper business practices and traditionally conservative business beliefs.
We strive to provide our clients with the most ethical financial investment services.
We endeavour to be fair, empathetic and responsive in serving our clients.
We know we must always earn and be worthy of our clients' trust.
:: Community Commitment ::
Permian Asset Management is dedicated to making a positive contribution to society through our focus on the environment, our people, responsible business practices, community investment and by strengthening the next generation. Since our company was established and thrives on the key acumen of doing first-class business in a first-class way, we take the grander view that the way business is done means a lot to our clients.
Our world view, and global citizenship, is a direct manifestation of Permian Asset Management’s core values and augments our ability to provide superior service to our clients, our employees and the communities where we invest, work and choose to live.
Permian Asset Management is committed to doing its share as a conscientious corporation by improving the quality of life in the communities that we touch.
We strive to apply our intellectual capital towards addressing issues of global concern that may be side-effects of our industry, and to mitigate these issues to the greatest degree.
Our people are Permian Asset Management's cornerstone, our distinct competitive advantage and our future.
We work each day with respect for our firm, our industry and the world in which we conduct business.
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
WEST JANICE #1 - GOOD PRODUCTIVITY EXPECTED
Again we have received very good news from our Joint Venture Partner EnerMax. Bret and the technical team have had an opportunity to evaluate the West Janice #1 Logs, and positive productivity is expected in the Wolfcamp and Devonian, along with the added productivity of the ABO and the San Andres.
We have included EnerMax Inc President Bret Boteler's detailed letter to me, regarding this great news about West Janice #1:
Partners,
Our technical team has had an opportunity to evaluate the West Janice #1 Logs and they are confident that we have good productivity in the Wolfcamp and Devonian, plus the bonus of the ABO and the San Andres. Our team, as well as regional experts are continuing to analyze the logs and correlate to offset wells and our seismic data. This process will require several days to complete. Part of the process involves tying the deviation survey (due to our inclinated well bore) to the electric logs shot by Halliburton. One of the regional experts we are using is a Halliburton West Texas Log Expert. His initial comments are that we have productive reservoirs in the Wolfcamp and Devonian.
Another encouraging fact is that when we tripped back in the hole with our drill pipe to condition for running production casing we experienced an 8,000 unit gas kick. This kick lightened our mud from 9.2 to 8.8 pounds per gallon (ppg) and revealed a light sheen of oil on the pits. We have increased our mud weight to control the flow of the well but we are still experiencing gas kicks ranging from 300 to 1,500 units. We are certain this gas is coming from the Devonian Formation. We will continue to manage the flow back of the well until we are confident that it is safe to run our production casing.
The explanation above should answer the question "If we finished drilling and logged the well why does it look like we're still drilling?" The answer is that we must completely clean out all of the cuttings and condition our hole so that we can successfully run production casing. The fact that the well is trying to produce oil and gas means that this process will take more time to accomplish. It is my estimation that we will have the hole ready to run casing sometime tomorrow.
Many of you have asked what an FMI Log is and what it is used for. An FMI Log is a Fullbore Formation MicroImager and it provides microresistivity formation images in water based mud. FMI images differentiate the specific sections of reservoirs that should be perforated in order to maximize the production levels of your well bore. It is very effective in West Texas, especially in the Wolfcamp, ABO and San Andres. The cost of the test is approximately $25,000, but worth every dollar. It can make the difference between a marginal producer and an excellent well. I made the decision to run the FMI over the entire Devonian, Wolfcamp, Woodford Shale, ABO and San Andres formations that appear to be productive from the Mud Log and/or the Electric Log. The only downside to the FMI is that it takes a couple of days to get the results. To learn more about an FMI Log you can click on the link below.
http://www.slb.com/media/services/evaluation/geology/fmi.pdf
I know that everyone is anxious for me to give an estimate of daily production and overall reserves. I will provide this information once we have collected all of our data and we are confident in our correlations. I will express, however, that I agree with all of our technical team in their belief that we have a nice discovery on our hands and that we are all very excited.
I have included a copy of the one inch mud log, total depth mud log and the electric log sections that correlate to the potentially productive reservoirs as indicated by the mud logs for your review. I will be sending a complete copy of the electric logs once we have gotten all of our data back from Halliburton.
Sincerely,
Bret Boteler
President
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has recently been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
For more information visit: http://www.enermaxinc.com.
We hope that all of you are as happy as we are here at Permian and realize that Industry Partners like EnerMax, Inc are what make this all possible.
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
We have included EnerMax Inc President Bret Boteler's detailed letter to me, regarding this great news about West Janice #1:
Partners,
Our technical team has had an opportunity to evaluate the West Janice #1 Logs and they are confident that we have good productivity in the Wolfcamp and Devonian, plus the bonus of the ABO and the San Andres. Our team, as well as regional experts are continuing to analyze the logs and correlate to offset wells and our seismic data. This process will require several days to complete. Part of the process involves tying the deviation survey (due to our inclinated well bore) to the electric logs shot by Halliburton. One of the regional experts we are using is a Halliburton West Texas Log Expert. His initial comments are that we have productive reservoirs in the Wolfcamp and Devonian.
Another encouraging fact is that when we tripped back in the hole with our drill pipe to condition for running production casing we experienced an 8,000 unit gas kick. This kick lightened our mud from 9.2 to 8.8 pounds per gallon (ppg) and revealed a light sheen of oil on the pits. We have increased our mud weight to control the flow of the well but we are still experiencing gas kicks ranging from 300 to 1,500 units. We are certain this gas is coming from the Devonian Formation. We will continue to manage the flow back of the well until we are confident that it is safe to run our production casing.
The explanation above should answer the question "If we finished drilling and logged the well why does it look like we're still drilling?" The answer is that we must completely clean out all of the cuttings and condition our hole so that we can successfully run production casing. The fact that the well is trying to produce oil and gas means that this process will take more time to accomplish. It is my estimation that we will have the hole ready to run casing sometime tomorrow.
Many of you have asked what an FMI Log is and what it is used for. An FMI Log is a Fullbore Formation MicroImager and it provides microresistivity formation images in water based mud. FMI images differentiate the specific sections of reservoirs that should be perforated in order to maximize the production levels of your well bore. It is very effective in West Texas, especially in the Wolfcamp, ABO and San Andres. The cost of the test is approximately $25,000, but worth every dollar. It can make the difference between a marginal producer and an excellent well. I made the decision to run the FMI over the entire Devonian, Wolfcamp, Woodford Shale, ABO and San Andres formations that appear to be productive from the Mud Log and/or the Electric Log. The only downside to the FMI is that it takes a couple of days to get the results. To learn more about an FMI Log you can click on the link below.
http://www.slb.com/media/services/evaluation/geology/fmi.pdf
I know that everyone is anxious for me to give an estimate of daily production and overall reserves. I will provide this information once we have collected all of our data and we are confident in our correlations. I will express, however, that I agree with all of our technical team in their belief that we have a nice discovery on our hands and that we are all very excited.
I have included a copy of the one inch mud log, total depth mud log and the electric log sections that correlate to the potentially productive reservoirs as indicated by the mud logs for your review. I will be sending a complete copy of the electric logs once we have gotten all of our data back from Halliburton.
Sincerely,
Bret Boteler
President
About EnerMax:
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has recently been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
For more information visit: http://www.enermaxinc.com.
We hope that all of you are as happy as we are here at Permian and realize that Industry Partners like EnerMax, Inc are what make this all possible.
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
WEST JANICE #1 HITS OIL!
West Janice #1 Hits Oil!
We have some great news!
The West Janice #1 reached its total depth of 11,525' early Monday morning. The well was then conditioned and prepared for logging. The first set of logs clearly indicates that we have a nice pay zone in the 1st Devonian and a nice pay zone in the Wolfcamp formation.
There is also a very strong possibility that we have discovered the 2nd Devonian formation as well. The data on the 2nd Devonian formation was a little distorted due to a wash out. However we are also confident of our findings in the ABO and San Andres pay zone’s, but will be running an FMI that will clearly identify the most productive areas in these reservoirs. The FMI will also give us additional data on the 2nd Devonian. The test results of the FMI will take two days to receive from the lab.
We are continuing to run additional tests, analyze the data and make correlations to our seismic and offsetting production. Regardless of what the FMI reveals, our technical team is more than confident we have a commercially productive well in the ABO and San Andres pay zones.
We are traveling back to the office today and we will be sending out a recommendation for completion this afternoon, which will contain much more detailed information.
We want to congratulate everyone involved with West Janice # 1 as well as thank you for your support and patience while waiting for the West Janice #1 to be drilled.
Again congratulations to all! We have a very nice discovery and are on the verge of proving up a very large regional trend.
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
WEST JANICE #1 CONTINUES TO SHOW GREAT POTENTIAL
Once again, I have received very good news from our Joint Venture Partner, EnerMax. We've had six additional shows at West Janice #1, and drilling has been suspended temporarily to perform a much needed drill stem test (DST). I have included EnerMax Inc's President Bret Boteler's detailed letter to me,regarding the wonderful progress being made with West Janice #1 so you can better understand what good news all of this is.
Partners,
I have some exciting news!
We have had three additional shows in the West Janice #1 since my last update. The fourth show was in the ABO Formation. The show was from 8,875' - 8,920' or a total of 45' (Show Report #4 attached hereto). The fifth show was in the Wolfcamp Formation. The show was from 9,040' - 9,050' for a total of 10' (Show Report #5 attached hereto). The sixth show was also in the Wolfcamp Formation. The show was from 9,150' to 9,165' for a total of 15' (Show Report #6 attached hereto).
I have included a comparison of our mud log to an ABO well (Hendrix) drilled and produced in this area. The well made 186,000 barrels of oil from the same type mud log show. Just as I mentioned in an earlier update, you certainly don't drill a 12,000' well to produce at 8,875'' however it's nice to know that we have a reservoir in place that should recoup our investment dollars even if we don't hit our primary reservoir. Combining this reservoir with the San Andres, we feel that we have created some tremendous value in our well bore up to this point.
We have stopped the drilling process temporarily to perform a drill stem test (DST) on the Wolfcamp Formation. This test will provide us with reservoir pressures and the percentage of oil saturation and the quality of crude. The test will take approximately four to six hours to complete. A drill stem test is a procedure for testing the surrounding geological formation through the drill pipe. During normal drilling, fluid is pumped through the drill stem and out the drill bit. Instead, in a drill stem test, fluid from the formation is recovered through the drill stem, while several measurements of pressure are being made. The basic drill stem test tool consists of a packer or packers, valves or ports that may be opened and closed from the surface, and two or more pressure-recording devices. (A packer is an expanding plug which can be used to seal off sections of the open well, here to isolate them for testing.) The tool is lowered on the drill pipe to the zone to be tested. The packer or packers are set to isolate the zone from the drilling fluid column, and testing measurement begins.
Once we have the test results I will prepare a report and post another update. At that time I will be providing comments on how the engineers and geologists feel about the quality of the Wolfcamp Formation that we've encountered. We will resume drilling shortly after the tests are complete and expect to be able to make it to the Devonian Formation with the new bit we will be drilling with.
The current depth of the well is 9,237'. I have attached the most recent drilling report for your review and will keep you updated as information becomes available from the field.
Regards,
Bret Boteler
President
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
Partners,
I have some exciting news!
We have had three additional shows in the West Janice #1 since my last update. The fourth show was in the ABO Formation. The show was from 8,875' - 8,920' or a total of 45' (Show Report #4 attached hereto). The fifth show was in the Wolfcamp Formation. The show was from 9,040' - 9,050' for a total of 10' (Show Report #5 attached hereto). The sixth show was also in the Wolfcamp Formation. The show was from 9,150' to 9,165' for a total of 15' (Show Report #6 attached hereto).
I have included a comparison of our mud log to an ABO well (Hendrix) drilled and produced in this area. The well made 186,000 barrels of oil from the same type mud log show. Just as I mentioned in an earlier update, you certainly don't drill a 12,000' well to produce at 8,875'' however it's nice to know that we have a reservoir in place that should recoup our investment dollars even if we don't hit our primary reservoir. Combining this reservoir with the San Andres, we feel that we have created some tremendous value in our well bore up to this point.
We have stopped the drilling process temporarily to perform a drill stem test (DST) on the Wolfcamp Formation. This test will provide us with reservoir pressures and the percentage of oil saturation and the quality of crude. The test will take approximately four to six hours to complete. A drill stem test is a procedure for testing the surrounding geological formation through the drill pipe. During normal drilling, fluid is pumped through the drill stem and out the drill bit. Instead, in a drill stem test, fluid from the formation is recovered through the drill stem, while several measurements of pressure are being made. The basic drill stem test tool consists of a packer or packers, valves or ports that may be opened and closed from the surface, and two or more pressure-recording devices. (A packer is an expanding plug which can be used to seal off sections of the open well, here to isolate them for testing.) The tool is lowered on the drill pipe to the zone to be tested. The packer or packers are set to isolate the zone from the drilling fluid column, and testing measurement begins.
Once we have the test results I will prepare a report and post another update. At that time I will be providing comments on how the engineers and geologists feel about the quality of the Wolfcamp Formation that we've encountered. We will resume drilling shortly after the tests are complete and expect to be able to make it to the Devonian Formation with the new bit we will be drilling with.
The current depth of the well is 9,237'. I have attached the most recent drilling report for your review and will keep you updated as information becomes available from the field.
Regards,
Bret Boteler
President
Sincerely,
Management
Permian Asset Management, AVV
Caya Dr. J.E.M Arends 14
Oranjestad
Aruba
admin@permianco.com
www.permianco.com
Phone + 297.588.9664
Fax + 297.588.9665
Our New Secure Web-based Form For Inquires and Contact: http://www.permianco.com/contact/index.html
This press release / email may include forward-looking statements as defined by the Securities and Exchange Commission. Such statements are those concerning forecasts, estimates, expectations and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that the actual results, or developments, may differ materially from those projected in the forward-looking statements.
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