The Oil Drum

Abqaiq, an aging super giant Saudi Arabian oil field, has yielded over 11 billion barrels of oil since it was discovered in November of 1940. Its past provides us with the poster child for easy oil. The first well flowed at 9720 barrels per day, a far cry from today's land finds where multiple horizontal laterals are necessary to coax lesser quantities from stingier reservoirs. But Abqaiq's more recent past paints a more muddled picture, as efforts to extract the remaining oil have produced mixed results. More advanced recovery methods have been successfully employed in some parts of the field, but these have likewise revealed unexpected geological complexities which have in turn hindered recovery in other areas. Many of the new challenges encountered in Abqaiq are relevant to the future prospects for other fields, particularly Ghawar and Khurais. This article will evaluate the development status of the field using satellite imagery to identify recent drilling in correlation with several recent technical reports on new developments and strategies for maintaining production.

Analysts Neil McMahon and Ben Dell from Bernstein Research are back with more analysis. When we last heard from them, they were looking for Haradh in all the wrong places and reporting on the widespread dismantling and bulldozing of oil wells in Ghawar, the super giant oil field in Saudi Arabia. As promised, they have returned with a study purporting to show that Ghawar is not rapidly depleting because it is not sinking. Using the the technique of Synthetic Aperature Radar (SAR) Interferometry, which is capable of measuring millimeter vertical movements via satellite, they found not subsidence but actually a slight rise in one area. Despite the rather dubious premise behind this, given that Ghawar is being pressurized by injecting water, it warranted another look. However, before getting to that question, my analysis of their analysis rapidly became one of forensic pathology. Alas, they have misplaced Ghawar by a few miles, rendering their interpretations misplaced as well. Also, their technique for quantifying changes in oil field infrastructure was found to be rather inaccurate. This can't end well.

NOW SHOWING: a movie on the drilling of Uthmaniyah. Using a set of wells in a productive (but now rather depleted) slice of this part of the Saudi oil field of Ghawar, it is possible to deduce to drilling sequence of these wells using the identifiers assigned to the wells as they are drilled. Given a few known dates for well placement, a timeline for overall development can be constructed and displayed as an animation. Enjoy the movie.

I have seen the future of Saudi Arabian oil production, and it is Harmaliyah. No, really. Sure, there are a couple more good doses of oil to be had from Khurais and Manifa -- and perhaps a bit more from Shaybah -- but after that, what is there but a lot of little fields discovered years ago and produced for a short while before being mothballed? Saudi Aramco essentially admits this by including the rejuvenation of the Nuayyim field, up to a capacity of 100,000 barrels per day, in their list of megaprojects. Well then, why not Harmaliyah? It is of similar size, and both fields had about 50 wells drilled before being set on the back burner. Saudi Aramco hasn't said much about this little field in the shadow of Ghawar, so one might assume that nothing is happening there. Well, it just so happens...

Khurais. It is the best of fields. It is the worst of fields. It is another chip off the old block, destined to prolong Saudi Arabia's dominance as an oil producer. It is a chink in the armor of the Saudi Oil Miracle, a symbol of a lesser future. Do tell, which is it? Amidst a lot of speculation, there are a few knowns. The Khurais Megaproject is the largest integrated development project in Saudi Aramco history. Slated for completion at the end of 2009, it includes the expansion of oil production in the Khurais, Abu Jifan, and Mazalij fields. These fields lie approximately midway between Riyadh and the Ghawar oil field, and sea water for injection will be piped in from the Arabian Gulf near Dharahan. The completed project is stated to have a capacity of 1.2 million barrels of oil per day. This article will present an early look at the Khurais development using satellite images and a review the scant data available for Khurais in an attempt to assess its prospects in light of much skepticism.

Everybody talks about the Saudi Arabian Oil Miracle, but most seem to be saying the same things. And those things usually consist of quotes or statistics provided by Saudi Aramco. This presents us with the following dilemma: if we believe what they say, why don't we just quit worrying about whether or not their oil will continue to flow? Or, if we don't believe what they say, why do we bother making future oil supply projections based on "production capacity" figures by them -- figures which can never be verified because their production levels always remain below capacity? What we need is some independent verification of the things they tell us. Hence the birth of Saudi Satellite Sleuthing using Google Earth. Following a brief introduction, I will show how Google Earth can be used to shed some light on the Haradh III Megaproject brought onstream in 2006.