Truly Sustainable Building Blocks for Deepwater Field Development: The Need for Strategies Re-Definition in a Persistently Low Oil Price Scenario?

Abstract

The abrupt changes that occurred to the oil and gas industry at the end of 2014 and the persisting low oil price scenario appear to challenge the previous perception that the deepwater market was going to successfully continue its remarkable growth. In the light of the new economic scenario, the current deepwater technologies adopted in deepwater field development may be seen as too expensive or not affordable any longer. To survive, the deepwater industry needs to change and to re-think the way projects are carried out. This paper reviews the main ‘building blocks’ for deepwater field development planning, discussing how they are currently used and exploring more affordable, but technically robust, alternatives. The results of this original investigation are discussed and practical solutions are presented. Operators need to continuously replace the reserves that are being produced. Deepwater blocks may have to be developed, sooner or later, even in a lower oil price scenario, to avoid the operator losing the rights on the same blocks. For these reasons, a discussion on the re-definition of field development strategies is of interest to the deepwater community. Clarifying which are the main building blocks and which is the more sustainable way to employ them in field development will hopefully help the recovery of the deepwater industry. The paper discusses the main technologies and components of a typical deepwater development, including subsea processing, and presents practical conclusions, identifying gaps, proposing alternatives - when desirable, and listing open issues that deserve further attention. This paper is a contribution to the unavoidable discussion that both international operators (majors and independents) and national oil companies face when it comes to the future development of deepwater fields worldwide. The sustainability of the technical solutions required for such development is a key aspect and needs to be properly addressed. Reflecting on how field development options are presently identified and handled during concept definition and concept selection is now necessary. The re-definition of development strategies appears equally critical with respect to a possibly persisting low oil price scenario.