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ResourceQ1 2013


 Volume 5, Number 17
Bob.jpg  The Potential Gas Committee (PGC) released their most recent biennial assessment of the nation’s natural gas resources in April ( The report affirms the magnitude of the endowment of clean-burning natural gas that is available to the United States. This is a result of past investments in the development of advanced technology for the extraction of natural gas from shale. The estimated technically recoverable shale gas resource increased over 50 percent from the previous assessment released in 2011.                                                                                          
As has been widely recognized, the availability of shale gas along with other domestic gas resources brings the promise of energy security for the U.S., along with the promise of stable gas prices. These resources will enable new markets to be developed in power generation, transportation and other areas- providing both environmental and economic benefits to U.S. citizens.
The PGC report noted that the assessment represents “our best understanding of the technically recoverable natural gas resource of the United States”. A number of factors must come into play in order for that resource to be converted to actual natural gas supply. Figure 1 (from the slides accompanying the PGC report) illustrates these factors.

Figure 1 
One of the issues, that threaten to stand in the way of effective utilization of the natural gas resource, is concern over emissions of methane during the production, transportation and use of natural gas. Methane is a powerful greenhouse gas, and there is concern that methane emissions could negate the greenhouse gas benefits of natural gas versus other energy sources. The first step is a careful scientific assessment of the issue. The Environmental Defense Fund (EDF) has been working with a number of producers on a study designed to assess the magnitude of emissions associated with current operations. ARPA-E ( and DOE Fossil Energy have also been looking at this issue. We are maintaining communication with all parties to ensure that this issue is accurately characterized and any technology needed for the detection or mitigation of emissions is developed and applied in ways that are well aligned with natural gas exploration, production and gathering operations.
Resources located in ultra-deepwater and other challenging environments will continue to be an important piece of the U.S. energy picture for a long time to come. Safe and responsible operations will be the key to success in these areas, and a range of novel technologies are under investigation and development to improve our capabilities. These technologies will ensure that the very large resources, located offshore can continue to make their significant contribution to the U.S. energy supply. New project proposals are expected to include a focus pushed toward commercialization for: UDW dry tree semis and flowline sensors, blowout preventer (BOP) improvements, increases in predictive capability while drilling, a step-change in drilling reach technology, more environmentally friendly techniques for seismic acquisition and crude oil dispersion, improved subsea surveillance capabilities, and more reliable equipment for subsea production and processing - among other items.  Several of these proposals, lend themselves extremely well to future offshore Arctic exploration and production activities; which many believe to be the next challenging frontier.  
This newsletter includes the usual update on the status of each of the program elements. A series of RFPs in each of the program elements have been issued during the first half of 2013. We count on your help to ensure that we end up with a portfolio of projects that will meet the goal of safe and environmentally responsible development of domestic energy resources. As always, this program would not be possible without the active support of our members, and we truly appreciate that support.
Best Regards,
Bob Siegfried
RPSEA President 
RPSEA is proud of its membership base. We now have 181 members. 
To learn more on our new members, click on their logos below for more information.
RPSEA welcomes each of these organizations and is proud to be affiliated with each one.
Please join us in welcoming them.
 CSI.jpg Hosts Open House for New Office Location
On April 18th CSI Technologies showcased their new office location in an open house. 
CSI Technologies is an engineering and research firm focused on cementing, stimulation, and technology concerns for operators in the Gulf Coast and US land.

Several RPSEA team members were able to attend the momentous event, including Vice President of Technical Programs, James Pappas. 
“Excellent presentations by highly qualified individuals on progress related to four RPSEA sponsored projects. An added plus were presentations on two non-RPSEA projects!”, commented Pappas.
CSI Technologies Development Engineer, Jessica Bassett shows Tom Williams, Senior Advisor for Environmentally Friendly Drilling Systems the Flow Loop (designed and built by CSI Technologies) and explains the importance of understanding fluid segregation.
CSI Technologies work with the following companies and subcontractors on RPSEA projects: Weatherford, the University of Houston, DaniMer Scientific, Texas A&M University, Chesapeake, EnerPol, Southwestern Energy, and the operator and service company members of the RCPC Working Project Group.

Please join us in congratulating CSI Technologies on their milestone.
If you are a RPSEA member and want your organization’s milestone featured in the Resource newsletter, please contact
 Small Producer Program
 Subcontractor Projects Highlight
Identifying and Developing Technology for Enabling Small Producers to Pursue the Residual Oil Zone (ROZ) Fairways of the Permian Basin –RPSEA 10123-17  
Researchers at the University of Texas, Permian Basin will further the work that they did in RPSEA 08123-19,  Commercial Exploitation and the Origin of Residual Oil Zones: Developing a case History in the Permian Basin of New Mexico and West Texas. 
The objective of the project is to characterize and delineate the geographical distributions and magnitude of Residual Oil Zone (ROZ) resources in the San Andres ROZ “fairways” in the Permian Basin of Texas and New Mexico. In addition, the study would identify technologies for characterizing the better rock and fluid saturation portions of the ROZ resource to recoverable with CO2 EOR. This effort is directed toward assisting the small oil producers within the Permian Basin and other ROZ basins within the U.S. 
Project tasks will begin with data collection, using the types and sources of data identified in previous RPSEA sponsored and industry work to provide ROZ delineation. The full understanding of the geologic origins of ROZ resources has just been recognized and the distribution of ROZ resources is not known.  The work to be performed in the San Andres formation of the Permian Basin is the first of its kind.  The data collected will be used to map ROZ fairways in the San Andres Formation in the Permian Basin. Detailed examination of reservoir rock and fluid samples will be made to understand differences between main pay zones and residual oil zones, and to try to find additional diagnostics to aid in ROZ detection. A workflow will be established that will help operators use a systematic approach to identifying and evaluating potential ROZ EOR candidates. A workshop will be held demonstrating ROZ cores, logging methods and interpretation aids and the workflow. The project will also examine the usefulness of 2D and 3D seismic surveys in assisting with ROZ delineation. Finally, there will be a rigorous estimate of the Permian Basin San Andres ROZ resource, and a demonstration of the methodology through extension to two other basins that have promise for sizable ROZ EOR resources.
Technically Recoverable Resources from the MPZ and ROZ
Based on reservoir modeling of applying CO2-EOR to the TZ/ROZ resources, ARI estimates that there are 11.9 Billion BO technically recoverable from the 30.7 Billion BO of TZ/ROZ oil in-place in these five Permian Basin oil plays.
Koperna, et, al., 2006  
Quarterly Report
The UDW Program is in the midst of new subcontract negotiations on four 2011 projects. As of this writing we have two additional new project bid selection recommendations to the Department of Energy, and some of our volunteer evaluators are winding up their recommendations on a third proposal.
We have a series of recommended proposals for the 2012 - 14 UDW Program, called Technical Areas of Interest, that our reviewers have recommended and our Program Advisory Committee has prioritized. Subject matter experts then developed statements of work for inclusion in a Request for Proposals (RFP), along with supporting documentation for Department of Energy review and approvals. We expect to have the RFP on the street shortly. 
One project was completed this past quarter: 
“Intelligent Production System for Ultra Deepwater with Short Hop Wireless Power and Wireless Data Transfer for Lateral Production Control and Optimization”, Project 09121-3500-01, was performed by Tubel, LLC. The company developed and commercialized a low-power, wireless data transmission and reception system that can be used for downhole applications. The Final Technical Report is available on our website, click here to view it.
Technical transfer continues to be a focus of our program. Among the outreach initiatives for this past quarter were: 
  • Six winter Technical Advisory Committee meetings in January 2013 that included presentations on all ongoing UDW projects. 
  • An interview with IADC for Contractor Magazine regarding projects related to wellbore cementing.
  • An article on “Fiber-containing Sweep Fluids Validated for Ultra-deepwater Drilling Applications” in the January 2013 issue of World Oil magazine.
  • Two articles entitled “Overview of Subsea Monitoring and Inspection Technologies Development in RPSEA” and “RCPC Holds Promise for Deep Water” in the February 2013 issue of American Oil & Gas Reporter. 
  • An article on “Ultra-Deepwater Reserves Appraisal” in the Hart’s E&P February 2103 magazine issue.
  • A presentation on the RPSEA UDW Program process and contracts at the Houston Marine Technical Society February monthly luncheon.
  • Ongoing preparations for the 2013 Offshore Technology Conference, including papers and sessions, to be held in May 2013. 
  • An interview with Drilling Contractor magazine to contribute to an article entitled “Cementing: Taking in lessons learned” for its March/April edition.
Looking back, actually this past quarter has been busy. Perhaps it was more productive than I first thought. I have to admit though: it certainly has flown by quickly.
Till next time,
James Pappas
Vice President of Technical Programs 
 Unconventional Resources Programs
Unconventional Gas Program Highlight -                          
New Gas Resources
As Bob discussed, our current gas resource base (technically recoverable) has grown significantly in recent years and is now well over 2000 Tcf.  Unconventional gas including gas shales represents a significant percentage of this volume and was enabled by current and past research targeting low k formations. 
A recent completed project (07122-17-Geological Survey of Alabama) has identified over 800 Tcf of gas in place in Alabama shales with approximately 70 – 100 Tcf technically recoverable.  This technically recoverable gas is not included in the current resource base inventory. It will be in the future; as technology continues to develop through focused research.  These resources will provide for the shale gas production, projected and needed in year 2040 (Figure X). 
Figure X 
U.S. Gas Production – Historical and Projected - Research from the 1980’s is providing for today’s gas supply. Research today is adding to our current resource base providing for tomorrows gas production 
Unconventional Gas Program Highlight -
Fundamentals of Gas Shale Rock Propertie
As technology developed to produce gas shales an equal number of new technology challenges have been identified. 
How does a methane molecule the same size as the rock pores through which it must flow, manage to flow at all, or what is the mechanism by which it travels to the wellbore (Figure Y)? 
Technology to address and understand these fundamentals is another dimension of the RPSEA program.   
What is at stake?
Current recovery of gas from gas shale formations is much less than 50 percent. This is a tremendous volume of gas that is currently being left behind.  Decipher this technology code and significant new volumes of gas will flow.  An added benefit, and significant benefit, is that the entire infrastructure – roads, meters, wellheads and pipelines are currently in place to deliver this gas, significantly mitigating environmental impact. 
Figure Y 
Flow through nanodarcy (very low k) rock as imaged by high resolution imaging technology as exists within our current National Lab capability (Lawrence Berkeley Lab).  Guided by industry input and data from shale formations RPSEA is reaching out to significant past investments in technology capability across the country to solve difficult but important challenges. 
Welcome New RPSEA Team Members
We are pleased to announce two new team members and one team member who has been with us since August.
Betty Diaz

Betty Diaz has eight years of experience in Procurement Subcontracts. She will be joining the Subcontract team, under Subcontracts Manager, Pat Jarkesy and also report to Vice President of Operations, Russ Fray. Betty will conduct all aspects of subcontract negotiations, including cost analysis and maintaining files in accordance with established policies and procedures. Before RPSEA, she worked eight years for Kellogg Brown & Root (KBR) supporting Operation Iraqi Freedom. During Betty’s time with KBR, she was in Iraq for seven years and Houston for the last year. She was responsible for maintaining the subcontracts for Base Life Support; the support services for the military to focus on their mission (subcontracts to maintain their everyday living, including housing and meals). Betty has a bachelor’s degree in Business and Marketing from the University Santa Maria La Antigua in Panama. Before going to Iraq, she called North Carolina home for 14 years. She returned to school for a teaching certificate and spent seven of those years educating young minds on the Spanish language and culture.
To contact Betty, email her at:
Kristina Cox

Kristina Cox will carry out the role of Website and Communications Coordinator and report to Director of Corporate Affairs, Steve Beach. She will be responsible for contributing to the launch and maintenance of our new website and managing corporate communications. Kristina brings six years of oil and gas experience as a communication professional for BP, Jacobs Engineering, Spectra Energy and Rolls-Royce where she supported websites, branding, events and other communication efforts. Kristina also worked with various publications and organizations as a communication strategist in her own business, Prime Acumen Creations. She has a bachelor’s degree in communications from the University of Houston in Clear Lake. She also studied at Prairie View A&M University. Before receiving her degree, she was a contractor for NASA, where she assisted civil servants and contractors for security clearance. Kristina is affiliated with the National Association of Professional Women, Public Relations Society of America and MarketingProfs.
To contact Kristina, email her at:
Laura Dominy
Laura Dominy supports Subcontracts Manager, Pat Jarkesy as the Subcontract Administrator. She brings 20+ years of government contract administration experience to RPSEA.  She studied at Louisiana State University. Laura has supported NASA, the State Department, and DoD on various types of contracts and subcontracts during her tenure with Lockheed Martin, Textron Systems, DynCorp International, and Cobham Antenna Systems.  Her expertise and diligence serves RPSEA well in negotiating complex subcontracts in support of RPSEA’s prime contract with the Department of Energy.  Laura is a long-time member of the National Contract Management Association (NCMA). To contact Laura, email her at:
 Please join us in welcoming them to RPSEA. 


 Get to Know RPSEA Team Member: Phuc Nguyen                     
RPSEA Accountant

Phuc has been with RPSEA since 2007.  He handles our accounting. He reports to the Vice President of Operations, Russ Fray and President, Bob Siegfried. Before joining RPSEA, Phuc worked with the following companies: MI-Swaco(Accountant), National Oilwell Varco(Accountant), Wells Fargo Bank(Personal Banking Officer).                          
He has 10 years of experience in his field. Phuc received his education from the University of Houston.
Phuc considers his job a privilege working extensively and intensively with high level professionals which enables him to formulate a bird’s eye view of how to effectively and efficiently run a company. He is proud of the RPSEA legacy and looks forward to the program evolving.  He financially interfaces with RPSEA members, RPSEA Award Subcontractors, and the Department of Energy. 
In his spare time, Phuc enjoys outdoor activities with his family. Going to the beach, bike rides, jogging, and yoga are some of his favorite activities.
This guy loves his job and welcomes RPSEA members and RPSEA Subcontractors with any invoice or financial questions to contact him at
Join RPSEA as a Supporting Organization of OTC 2013, in Houston, TX on May 6-9. 
Our booth will not be in its normal location. Come taste our sweet treat giveaways, at Booth# S20, located in the lobby between Exhibit Halls D and E by the self registration check-in. 
In addition to our booth, RPSEA will chair two Technical Sessions in which RPSEA projects and papers will be presented on Wednesday, May 8th and Thursday, May 9th in the mornings.
Hilton Garden Inn Canonsburg, PA
May 7 
Workshop: Reservoir Characterization Essentials, Waterflood Design, and Onshore Production
RPSEA will host a reception on June 26th, the day before our Onshore Production event.


RPSEA | 281-313-9555 | |
1650 Highway 6, Suite 325 Sugar Land, TX 77478