OPEC ups demand growth estimate, will not increase production

The Organization of Petroleum Exporting Countries upped its prediction for oil demand growth for 2011 by 50,000 barrels per day on Monday, to 1.2 million barrels per day, with demand for oil from OPEC member nations expected to average 29.4 million barrels per day, 40,000 barrels over demand last year.
OPEC oil ministers also said that the cartel would not increase output despite higher prices.
While the OPEC ministers were not bothered by oil prices that have returned to nearly $100 per barrel, the head of the International Energy Agency expressed concern that prices at present levels could hurt economic recovery.
US markets were closed to floor trade in observance of Dr. Martin Luther King, Jr’s birthday, but in electronic trade West Texas Intermediate Crude was down just over half a dollar to $91.02 per barrel at early afternoon in New York, while Brent crude had most recently dropped 81 cents to $97.57 per barrel on the ICE Futures Europe exchange in London..
Meanwhile, the retail pirce of regular unleaded gasoline dropped slightly overnight, to $3.096 per gallon on average in the United States.

Daily Oil Prices 5 Jan 2011

WTI Oil Chart 5 Jan 2011

Daily oil prices have today rebound back above the $90 per barrel price handle following better than expected crude oil inventories which confirmed a draw of -4.2m barrels against a forecast of -1.4m barrels.  This data also followed much better than expected employment data in the US suggesting that the US may now be seeing the start of a much firmer economic recovery.  Two further factors which will also impact commodity prices include Iran and Kuwait’s determination to maintain OPEC production targets and the emergence of La Nina weather phenomenon, confirmed earlier today by the Australian Bureau of Meteorology.  According to the FT it seems the “strength of the present event is inspiring comparisons with 1973-1976, when several years of La Nina conditions triggered severe droughts and pushed the world into the most extreme food crisis since the second world war”.  It’s effect on oil production will be seen in disruptions to offshore drilling and production.
From a technical perspective crude oil prices look set to re-test the psychological $100 per barrel price handle which given the stance taken by OPEC and possible weather conditions may be sooner than anticipated.
Kuwait & Iran stand firm on oil production

Fracturing port collar for wellbore pack-off system, and method for using same

A collar for injecting fluid, such as a formation treating fluid, into a wellbore, and a method for using same. The collar is disposed between the upper and lower packing elements of a pack-off system during the treatment of an area of interest within a wellbore. The collar first comprises an inner mandrel running essentially the length of the collar. The inner bore of the collar is in fluid communication with the annular region between the collar and the surrounding perforated casing by a set of actuation ports. A second set of ports, known as frac ports, is disposed within the mandrel. In accordance with one aspect of the invention, the collar further comprises a tubular case which substantially seals the frac ports in a first position, and slidably moves along the outer surface of the mandrel in order to expose the frac ports in a second position. In operation, the upper and lower packing elements are set at a first fluid pressure level. Upon application of a second greater fluid pressure level, the upper and lower packing elements are further separated in accordance with a designed stroke length, thereby exposing the frac ports.

Foreign References:

GB2275284
GB2292400
WO/2001/094743				PORT COLLAR ASSEMBLY FOR USE IN A WELLBORE

Other References:

All About Directional Drilling Rigs

Directional Drilling Rigs

Power Bore 70 (1 No) Click the image to enlarge then use the Next / Prev buttons to view more images Technical Details Torque 30000 Nm Pull Back 700 kN (70 Tonne) Length 9.2m Width 2.4m Height 3.2m Engine Type Cummins C6TA8.3-P Drill Rod Length 4.6m long, 5" diameter. 4.5" IF thread

Maxi Drilling Rig

Maxi Drilling Rig - 250 tonnes of Thrust and Pull Back

AMS No-Dig Ltd has recently increased its Horizontal Directional Drilling fleet with the purchase of a new Maxi Drilling Rig together with mud processing, pumping and recycling plant. The Prime drilling rig (PD250/90), as the name suggests, offers 250 tonnes of thrust and pullback with 90,000Nm of rotary torque making it the most powerful rig based in the United Kingdom. In simple terms this means conduits up to 1.5m diameter and bores in excess of 2km are within scope.

Directional Drilling Process

The Directional Drilling Process

Guided Auger Boring can provide a solution in situations where HDD cannot be utilised, where set up room is limited or in situations where levels are critical. Traditionally this technique has been used in the installation of vitrified clay gravity sewers but is being applied increasingly in the installation of steel sleeves used to carry utility installations. The AMS No-Dig fleet has the capacity to install product up to 900mm in diameter and up to 90m in length, subject to ground conditions.

Directional Drilling

Horizontal Directional Drilling (HDD) is a technique by which pipe, duct or cable can be installed underground without disturbing surface structures and thereby avoiding the disruption caused by traditional open trenching methods. Installations under motorways, waterways, railways, airport runways and SSSI sites are routine. The cost savings resulting from the application of this technology, in both direct and consequential terms, can be very significant. HDD is fast, efficient and environmentally friendly. Using the latest in tooling and mud technology, successful installations can be achieved in most ground formations. The AMS No-Dig fleet has the capacity to install product up to 800mm in diameter and up to 600m in length, subject to ground conditions. Directional Drilling Process