84 comments on Yet Another Forecast for Saudi Oil Production
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84 comments on Yet Another Forecast for Saudi Oil Production
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Khebab, thanks for this compilation.
Here's the forecast I produced last year which I believe is using similar methodology to that used by J. Burn this year - i.e. the forecast is built upon the historic production stack, some assumption is made about decline (I'll return to that later) with new projects built upon that to produce the forecast. I think JB's forecast looks pretty similar to mine though I note he is modeling crude oil and mine is for crude + condensate + NGL (C+C+NGL).
Forecast numbers are production capacity. Actual production may be lower depending upon demand. Click all charts to enlarge
This forecast is built upon the significant body of work done modeling reserves and decline in Ghawar last year by Stuart Staniford and myself aided and abetted by a gang of TODers. At the end of it all Stuart and I reached very similar conclusions.
This is the revised base case Ghawar forecast upon which the Saudi forecast is built:
http://www.theoildrum.com/node/2507
The weaknesses with this Saudi forecast that I would identify myslef are as follows:
• The 500,000 kbd estimates for discovered undeveloped and yet to find are pure guess work.
• I have applied 5% decline to the heritage assets and this may be far too high. As JB points out here there are still large undrilled areas on certain supergiants that can be drilled to compensate for decline. This may be particularly true in the northern sour heavy fields of Safaniyah, Marjan and Zaluf.
• No allowance is made for secondary recovery from the now wet areas of Ghawar. With the right investment these may produce vast amounts of oil with high water cut forward to 2100.
Each of these points are likely to add to the forecast shown and this will likely help bridge the gap between the reserves held in this forecast and those reported by the likes of Colin Campbell.
I like this 30 billion barrel forecast. Excellent work by Euan.
By Saleri's own numbers remaining reserves in Ain Dar/Shedgum at this point are about 10 Billion barrels. I think North Uthmaniyah is lower... any reasonable volumetric estimate of the "Mohawk" says it.
Note that there is a 3 MMBOPD loss to 2015 in this compared to 1 MMBPD in the forecast given.
But I would say Khebabs curves about have it covered.... LOL.
FF
Err Euan, Haradh III only came onstream in 2006, bringing total Haradh production up to 900k. IIRC anything that's actually coming out of Hawiyah NGL is similarly tied to recent GOSP construction?
Hawiyah NGL is coming from non-associated wells. They have added quite a few in the Hawiyah/S. Uthmaniyah areas in the last few years, with the output eventually feeding the NGL plant completed just east of the existing Hawiyah gas plant.
Gary - see your point about Haradh - must have had a bad bottle that evening. I don't understand the remainder of your comment.
I think Hawiyah NGL production was similarly affected by lower numbers in the past due to completion dates on facilities being recent. That's from memory, I can't lay hands on the link, but it should be out there.
Obviously we've been over the difficulty in getting good production numbers from these fields in the past; let alone future figures. Still, I'd bet that Shedgum will go before Uthmaniyah and old fields will be progressively shut in to yield surge capacity as newer fields come on line - putting a cap on production and confusing that graph mightily.
Following your comment, I've updated the chart in JoulesBurn story.
Thanks Sam,
So what is HSM and where did the Brown and Khebab forecast come from and has Jeffrey seen it?
Euan
You can click on the links within the table in order to get a detailed explanation. In a nutshell:
- The HSM is a variant of the Shock model proposed by WHT, the Saudi Arabia forecast is based on a discovery dataset from IHS:
- The Brown & Khebab is based on a bootstrapped HL technique with a fairly large uncertainty, I took only the upper forecast (URR @ 250 Gb):
I think that the HSM is one of the best approaches for SA, in particular given the fact it is almost impossible to get good reserve growth numbers off of discovery data from such an inscrutably circumspect national oil company.