Unconventional resources have transformed the North American oil and gas industry and have enabled the United States to get closer than ever to energy self-sufficiency. Software technology has been a key part of the effort to extract hydrocarbons from these shale deposits as well as other subsurface formations around the globe, including the deepwater, ultra-deepwater, and harsh environments such as the Arctic.
Exploiting the vast stores of oil and gas that lie hidden beneath the earth's surface would not be possible without the advanced software technology that is deployed hand-in-glove with new drilling, completion, and production equipment and techniques. Today's software allows geologists, geophysicists, and engineers to see what is beneath the surface and to vastly reduce drilling risk. In fact, in today's energy companies, software technology is utilized throughout the organization to increase efficiency and decrease risk from the drawing table to the wellhead and from the back office to the boardroom.
Investment in equipment and software is expected to grow 4.2% in 2014. The energy renaissance in the United States is responsible for much of this growth, as capital continues to flow into the sector from inside and outside the country. The credit squeeze is over, and capital is generally available from public and private sources, giving the economy momentum for further growth.
Speaking of trends and opportunities in US shales, the oilfield water management business has grown into a $10 billion market this year, as Don Warlick of WarlickEnergy, explains in his article on the evolving water management services industry sector in this issue of OGFJ. This growth would not have been possible without the use of software for technical support, water sourcing, logistics, treatment, laboratory analysis, etc.
In his article in this issue, Paul Allen of Portfolio Decisions says that risks should be adequately considered from a corporate perspective as well as looking at exploration, drilling, and operating risk. When employed effectively, he explains, software for stochastic portfolio analysis can ensure that risks are thoroughly examined at the corporate level as well.
We hope you find this special software technology section worth your time.
