Former BP executive discusses top trends in oil exploration
Dr. Michael C. Daly is the former executive vice president of exploration at BP. During a recent speech at Imperial College in London he discussed the future trends of global oil and gas exploration.
According to Daly, exploration trends will follow the industry’s perception of the “next best resource base” to explore and develop, which incorporates both the scale and quality of resource and the cost of its development.
In the next 30 years there will be:
(a) a decline in deepwater discoveries;
(b) the rise and then fall of arctic ice-bound discoveries;
(c) and sustained exploration delivery from onshore basins as the continents are re-explored.
What does this say about the future exploration trends?
- Go deeper, exploring down to the source rock;
- Deltas are still delivering surprises.
So where will industry go? Not west, but north.
The ice-bound continental shelf and slope of the Arctic remains largely unexplored. But 60 percent of the arctic continental margin is in Russian waters, which explains the dominance of Russia in terms of estimates of YTF. The frontiers there of deepwater basins and deltas remain to be explored. The Arctic has significant potential, but the license to operate remains uncertain outside of Russia.
Onshore, three exploration trends will dominate as the industry re-explores the onshore and shallow water regions of the world.
- Exploration of frontier basins like the Congo.
- Exploration of the unexplored rock volume of existing basins with a “source rock upwards” philosophy.
- Exploration for missed and tight pay in and around the world’s giant fields and source rocks, and convergence with EOR.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.