1.Contents | Zoom in | Zoom out For navigation instructions please click here Search Issue | Next Page The New Era of Shale BHP Billiton PetroleumSUPPLEMENT TOContents | Zoom in | Zoom out For navigation instructions please click here Search Issue | Next Page

2. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND Contents2 The Company4 Operating Principles6 The Growth of U.S. Onshore Oil and Gas10 Building the Wells12 The Move into Shale14 The Eagle Ford Shale22 The Permian Basin26 The Haynesville Shale30 The Fayetteville Shale34 Zero Harm36 Good Neighbors38 Avoiding Potential Roadblocks40 Company ProfilesqMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 3. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTANDEvery time we look at the opportunities in our shale oil and gas plays, they get larger. MIKE YEAGER CHIEF EXECUTIVE BHP BILLITON PETROLEUM We know the resources are there. Our job is to deliver them safely and in an environmentally responsible way. We are in this business for the long haul, and we are going to do it right.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 4. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND2 BHP BillitonThe CompanyHouston-based BHP Billiton Petroleumdelivers nearly one fourth of the annual earningsof the BHP Billiton Group.BHP Billion Petroleums exploration, development, Philippines, India, and Malaysia. Between 2007 andproduction, and marketing activities span more than 2011, BHP Billiton Petroleum brought five world-classa dozen countries. The company holds significantdevelopments on stream.positions in the deepwater Gulf of Mexico andonshore United States as well as in Australia, theThe company entered the onshore shale business with the $4.75billion Fayetteville Shale acquisition in April, 2011, but that wasUnited Kingdom, Algeria, Trinidad and Tobago, andjust the first step. It strengthened its U.S. onshore position later inPakistan. It also has promising prospects in thethe year through the $15 billion acquisition of Petrohawk EnergyBHP Billiton Petroleums Seismic Processing and Imaging Team has numerous technology projects with research institutions around the world. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 5. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND BHP Billiton 3BHP Billiton Petroleums Shenzi deepwater platform in the Gulf of Mexico began production in 2009.Corporation, which gave it major stakes in the Haynesville, Eagle BHP Billiton Petroleum has close to 4,000 employees globally,Ford, and Permian basins to complement its Fayetteville position. and is deeply committed to their safety. The company has theSince then, the U.S. onshore workforce has doubled. BHP Billitonsystems in place to ensure its employees return home unharmedPetroleum operates some 45 land drilling rigs in the United States in at the end of the day, and it continually strives to improve itsaddition to its deepwater drilling around the world.sterling safety performance.BHP Billiton Petroleum is now among the largest independent As a global producer, exporter, and consumer of energy, BHP Billitonoil and gas companies in terms of both its total production and understands the need to conserve energy and the risks of climateresource base. Its shale assets in North America are some of thechange. Since 2006, it has achieved an 16 percent reduction inmost valuable, high-quality resources in the world. greenhouse gas emissions per volume of production, exceeding itspublic target of a six percent reduction by 2012.The companys business is built on a powerful platform ofrigorous safety standards, high quality oil and gas resources,functional excellence, operating discipline, and financial strength.It has the people and skills to take on complicated and diverseopportunities, and the flexibility to move quickly to deliver valuein any environment. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 6. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND4 BHP BillitonOperating PrinciplesThese five basic operating principles shape everythingBHP Billiton Petroleum does as a company and serveas its pledge to local communities.1. To be the safest company in the industry We are committed to restoring the environmentwhen we complete our operations to ensure it is We carefully develop and rigorously implement safetyas healthy and robust as before we arrived. and operating systems, properly train our people, and will not compromise our behavioral standards. 3. We will safeguard and manage water resources We only work with contractors who share our commitment to safety.We minimize our impact on fresh water by utilizingalternate sources wherever possible. We partner with local communities to prepare them to respond to unplanned events. We do not dispose wastewater into anysurface source (streams, lakes, rivers).2. We will protect the land where we operateWe do not drill or conduct hydraulic fracturing operationsunless we are confident that groundwater will be protected.We install and operate our wells and facilities inthe most environmentally sensitive manner. 4. We will minimize air emissions from ourWe look for opportunities to drill multiple wells from asingle pad to reduce the size of our surface footprint. operationsWe conduct environmental assessments prior to We conduct our operations in a mannerthe execution of work to properly plan for andthat minimizes flaring and venting.minimize the impacts of our operations. We use alternative or cleaner-fuel source technologies.We have one of the most modern and operationallyefficient drilling fleets in the onshore industry. 5. We will be a good neighbor to our communitiesWe look for ways to make our operationsless intrusive to the community.We publicly disclose the chemicals that are usedin our hydraulic fracturing operations.We work with state and local officials to find workablesolutions to common industry problems.We give back to the community in a meaningful waythrough social investment and partnerships. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 7. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND BHP Billiton 5Safety is BHP Billiton Petroleums primary concern. The companyrecognizes that the business of finding, extracting, and deliveringhydrocarbons is full of potential hazards, and its commitment tothe safety of its employees and contractors is one reason that,statistically, they are less likely to be injured at work than they arein their own homes.Every employee and contractor, no matter what their position, hasthe right and obligation to speak up if they have doubts about anyactivity. If they cant be certain of the task at hand, they are requiredto either stop the job or do whatever it takes to ensure their ownsafety and that of those around them.Is the approach working? Yes. In its U.S. onshore operations, manyof the safety standards established by BHP Billiton Petroleumhave improved not only its own safety performance, but that of itscontractors and other operators as well.Eagle Ford Drilling and Completions Manager Michael Bloomprepares a group of journalists for a drillling rig site visit. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 8. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND6 BHP BillitonThe Growth of U.S.Onshore Oil and GasIts no secret that recent advances in hydraulicfracturing and well completion are opening vastnew oil and gas resources. The biggest fields byfar are in North America.An increasing portion of BHP Billion PetroleumsNorth American portfolio consists of what areknown as unconventional oil and gas plays.While shale oil and shale gas are consideredunconventional resources, the term refers onlyto the source rock, not the high-value liquidsand natural gas that come from it. Two basins inparticular, the Eagle Ford and the Permian, accountfor about 40 percent of all the unconventional oiland gas activity in the United States.What are shale andtight gas reservoirs?In conventional reservoirs, hydrocarbon molecules are able tosqueeze between the grains of relatively porous rock. Above thatporous zone, however, there must be what geologists call a trapor seal to keep the oil and natural gas from migrating all the wayto the surface.Shale reservoirs are different. Shale and other tight reservoirsdont need traps and seals, because the source rock itself is the trap.Hydrocarbons are caught within pore spaces that are significantlysmaller and more restrictive, and are also absorbed onto the claymineral particles that make up the shale. The only way hydrocarbonmolecules can move around is through natural and artificial cracks. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 9. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND BHP Billiton 7A matter of scaleOne of the biggest differences in shale oiland gas fields is the large number of wellsneeded to extract the resource. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 10. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND8 BHP BillitonAn abundance of opportunity exists in shale in the lower 48 states.Source: Energy Information Administration based on data from various published studies. Updated: May 9, 2011.Geologists have long been aware of the oil and gas contained in out the small operators and forcing changes within the industry.shale, but didnt have a way to recover it economically. That changed Thats nothing new in the oil and gas business. Whats importanton a significat scale in the mid-2000s, thanks to improvements in a to remember is that discovering, producing, and delivering50-year-old technology known as hydraulic fracturing, or fracinghydrocarbons is a long-term venture. Fields take years, evenfor short. Fracing uses water pressure to create networks of tiny decades, to develop. The wells being drilled now will be productivecracks in the rock. To hold them open, sand and minute amounts of for at least the next 30 years.a gel-like thickener are added to the water.At the end of 2012, the companys onshore holdings stood at 1.6But what about market changes?million acres. Since it will take 20 years just to develop the shaleresources it knows are in the ground, the fields themselves will beAfter BHP Billiton Petroleum acquired a stake in the U.S. shale active for at least the next 50 years. Few industries have lead timesoil and gas industry, the price of natural gas in the United States as long as this, or capital expenditures as large.dropped to the lowest level in years. Such low prices are squeezing qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 11. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTANDBHP Billiton 9The drillers control room, known in the industry as the dog house, on one of BPH Billiton Petroleums brand new Eagle Ford rigs built tocompany specifications.Supply and demand drives the market. While the United States nowWhat about liquids production?has an oversupply of natural gas, Europe and Asia do not. Thatwill likely change in the next few years as more liquefied naturalBy the end of 2012, BHP Billiton Petroleums onshore fieldsgas (LNG) receiving terminals in the United States are converted to were delivering 270,000 barrels of oil equivalent per day to U.S.export terminals. When it becomes relatively easy to export natural customers. The hydrocarbons are a mix of oil, natural gas, andgas, world prices should be more uniform. natural gas liquids in the current market, the liquids sell for morethan dry gas. Since many of the companys onshore fields haveOther factors are changing the market as well. Low prices are the capacity to produce more than 50 percent liquids, it has theencouraging some electric power producers to shift from coal to gas,flexibility to leave the dry gas in the ground for now and keep itsand chemical plants are increasing capacity to take advantage of thecrews and equipment busy producing more liquids, including cruderelatively low cost of natural gas liquids. The demand for natural gasoil, which continues to sell at strong prices.and natural gas liquids is certain to grow in the United States, thelargest and most mature market in the world.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 12. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND10 BHP BillitonBuilding the Wells At the surface After geologists and reservoir engineers determine where the wells should be, crews level the site, construct a lease road, erect the drilling rig, and place support facilities on the pad. For efficiency, and to minimize disturbance at the surface, BHP Billiton Petroleum typically drills and completes several wells from a single pad, directing each wellbore to a different part of the target zone. When the wells are to be hydraulically fractured, an array of large trucks, pumps, storage units, and control systems will be brought in for several days. Once all the wells are completed, the perimeter of the site is restored as close as possible to its original condition, leaving only a minimal surface footprint. Surface drilling and casing Drillers start a new well by drilling a hole to a depth of approximately 80-100 feet, and installing a large-diameter pipe called a conductor casing, which is then cemented in place. Protecting the water table Once the conductor casing is set, drilling continues to a depth that state regulatory agencies determine is well below the level of any fresh ground water. The heavy pipe called surface casing is then installed and cemented in place by pumping cement down the pipe. The cement circulates to the bottom of the surface casing and rises back to the surface on the outside of the casing, forming another layer of protection and strength. Horizontal drilling Shale wells are usually completed with a horizontal section. As the wellbore continues downward and it approaches the target shale, drilling engineers guide the drill bit, curving the borehole until its path is horizontal or nearly so. The finished hole may run horizontally for a mile or more through the hydrocarbon-rich layers of rock. Production Casing The drilling phase is finished after drillers install and cement an additional set of piping from the bottom of the well all the way back to the surface, forming yet another barrier between the rock and the inside of the well. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 13. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 11Manufacturing wellsIn most shale fields, operations continuearound the clock. Depending on the reservoir,wells typically take 10-20 days to drill. BHPBilliton Petroleum drills several wells fromeach pad in a manufacturing-like process.PerforatingHydraulic FracturingIn a critical part of the completion phase, portions of the production Because shale is too dense for hydrocarbons to flow through itcasing are perforated by a series of small explosive charges, creating on their own, the wells are stimulated by pumping in fluidholes that are about an inch in diameter and extend as far asusually water and thickenersand sand under very high pressure.18 inches into the surrounding rock. These perforations provide aDownhole, the fluids push out through the perforations into theconduit for fluid and sand to be pumped into the reservoir during therock formation. The pressure is great enough to break the rock andfracing stage, and afterward allow hydrocarbons into the wellborerelease hydrocarbon molecules from microscopic voids in the shale.so they can flow or be pumped to the surface.The sand, called proppant, holds the fractures open so the fluids can flow into the wellbore and to the surface.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 14. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND12 BHP BillitonThe Move into ShaleThrough purchases in 2011,BHP Billiton Petroleum acquired majorpositions in four of the largest onshore oiland gas fields in the United States.Two of the assets are what the industry calls liquid- People know usrich, which means the hydrocarbons they produce BHP Billiton Petroleums onshore acreage in the United States liesare largely oil and natural gas liquids, as opposed in regions where people have a long history in the oil and gasto dry gas. In some areas, the proportion of totalbusiness and the industry is an important part of the economy.liquids production is as high as 80 percent. TheAt the end of 2012, the company was producing 270,000 barrels ofcompanys holdings in shale basins across Texas,oil equivalent per day from these onshore fields. That number willgrow throughout 2013, driven by more than $4 billion in drillingLouisiana, and Arkansas contain some 8.0 billionand completion and facility development.barrels of oil equivalent, a U.S. domestic resourcethat we will be producing over the next 50 years. Using local contractors, BHP Billiton Petroleum is building theinfrastructure to bring valuable gas and liquids to market. In 2012,it installed some 140 miles of new pipeline in the Eagle Ford andPermian shales, and is building another 200 miles of pipeline in 2013.Over the next few years, the company will add six new processingplants and lay about 800 miles of pipeline in the Eagle Ford alone.Development in the Permian includes some 600 miles of pipeline, aswell as gas dehydration, compression, and cryogenic facilities.These large, long-life, and low-cost assets hold tremendousvolumes, with potential for significant future development. Together,they make BHP Billiton Petroleum one of the industry leaders insome of the most productive shale basins in the United States.BHP Billiton Petroleums size and scale give it the flexibility torespond to market conditions. In financial year 2012, the companyadjusted its shale development plans to focus on oil rather thangas, while maintaining its capability to ramp up in the future whennatural gas prices rebound.A diversified portfolio of onshore oil and gas opportunities providesextraordinary flexibility to respond to changes in the market.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 15. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDBHP Billi on 13BHP Billiton 13P Billitonll n Home-grown energy BHP Billiton Petroleum works closely with landowners to minimize its footprint.Shale proving to be aneconomic boon to the U.S. 1.75 million jobs created in past few years. New jobs expected to grow to 3 million in 2020. $2.5 trillion in government revenue by 2035. Nearly 2% of U.S. GDP over next three years.Source: U.S. Chamber of Commerce qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 16. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND14 BHP BillitonThe Eagle Ford ShaleHydrocarbons in economic quantities werediscovered in the Eagle Ford shale in 2008.Since then, the region has become the epicenterof shale operations in Texas, and one of thepremiere plays in North America. The Eagle Ford spans more than 400 miles of south-central Texas. The heart of the play is about 50 miles wide and has an average thickness of 250 feet. It is a giant resource that will be productive for many years to come. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 17. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 15qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 18. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND16 BHP Billiton BHP Billiton Petroleums average hydrocarbon production from the Eagle Ford, which includes the Black Hawk and Hawkville fields, is over 50 percent liquid hydrocarbons. With an attractive product mix of condensate and natural gas liquids, the Eagle Ford Shale is rated among the lowest cost plays in North America. As a result, the economics of dry gas have much less effect on company activities. The rigs are working flat-out, says Eagle Ford Production Unit Manager Steve Pastor. Our success is due in part to the fact that were in the sweet spot of the basin. Geologically, it is among the best of the best. According to a study by the independent research and consulting group, Wood Mackenzie, BHP Billiton Petroleum has the second most valuable position in the Eagle Ford.The Eagle Ford includes a vast rural area of south-central Texas.Hydraulic fracturing at night in the Eagle Ford Shale. Drilling and completions operations run non-stop, lessening Americas dependence onforeign oil and gas. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 19. qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 17The field produces three products. First is the crude oil andcondensate, which is a high-value lighter form of crude oil. Nextis dry gas, which can often go straight into interstate pipelinesBHP Billiton Petroleumsand be sold directly into the market. Between the two are natural Technology Goalsgas liquidsethane, propane, butane, and pentanewhich are Model and understand production complexitiestypically separated out in gas processing plants.associated with nano-permeability reservoirsIn 2012, BHP Billiton Petroleum produced nearly 100,000 barrels ofoil equivalent per day from the Eagle Ford Shale, with half of that Lead the industry in the development of staticbeing hydrocarbon liquids and the rest, dry gas. In the next fewand dynamic shale reservoir modelsyears, the company aims to produce 300,000 barrels equivalent perday from the Eagle Ford. Six new processing plants will be needed to Improve hydraulic fracturing efficiency,handle the volumes. BHP Billiton Petroleum will be adding 800 miles development planning, and ultimate energyof pipeline, and has already spent more than a billion dollars on therecoveryinfrastructure. Identify, assess, and implement breakthroughReservoir modelingtechnologyCommercial amounts of hydrocarbons were discovered in the EagleFord Shale in 2008. The region has since seen an extraordinaryamount of development as one of the premiere shale plays inNorth America. What BHP Billiton Petroleum brings to the tableis financial strength and technical depth to make the most of thisoutstanding resource.If we can unlock the secrets of the Eagle Ford, we can apply that technology elsewhere around the world.Vice President of Development Planning Rob Kase.qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 20. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND18 BHP BillitonWe are now working on dynamic reservoir models of the field,says Rob Kase, Vice President of Development Planning. Thatswhat we do for conventional reservoirs, but it has never been donein a shale like the Eagle Ford. Reservoir models are computer-based simulations of a fieldsgeology. Specialists construct them using seismic data andinformation from wells. Dynamic 3D models help engineers andgeoscientists predict how fluids will move through a reservoir.Accurate models help them plan the location of new wells anddevelop strategies for enhancing recovery.The reason no one has created a dynamic model for a shale reservoiris that the permeability of the rock is so much less than it is in aconventional oil and gas reservoir. The rock is so tight that someof the parameters geoscientists would use to model a conventionalEagle Ford Production Unit Manager Steve Pastor (left) with Eaglereservoir just dont apply.Ford HSEC Supervisor Harry Barnes.The conventional approach is difficult to use in the Eagle Ford,Kase says. In a well-connected reservoir with higher permeability,you can calculate the flow or drainage rate based on the reservoir not a strong correlation between the characteristics of the reservoirparameters. Here, because the rock is so dense and varied, it createsand how much production you can expect from the wells.a significant challenge. Shale gas recovery factors generally run in the mid to high teens,The flow rate from a single well, for example, can be deceiving. The and oil recovery factors between five and seven percent, Kasefluids might be entering the well at a uniform rate throughout the says. If we can build a dynamic reservoir model for the Eagle Ford,length of the completion zone, or the majority of the fluids might beI believe we can improve recoveries significantly. This will have acoming from a narrow zone that just happens to have more natural significant impact on not only production rates, but the value of thefractures in the rock. Without a good model of the reservoir, there is asset. The really big prize, howeverif we can unlock the secretsqMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 21. qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 19 in revenue, created 38,000 full-time jobs, and added $211 million to local government revenues in south-central Texas. Today, communities in the 14 counties that make up the Eagle Ford are building new schools and hospitals and launching training programs to help people realize the benefits of shale oil and gas development in the regions surrounding their communities. The study projects that up to 116,000 full-time jobs will be created by 2021. Water in an arid land The Eagle Ford has no surface water to speak of. Much of the area is quite arid, but there is a world-class aquifer that has an immense volume of fresh water in a porous sandstone that is 400 to 500 feet thick. The problem is, the water is extraordinarily deep. While most freshwater aquifers are no more than 400 feet below the surface, one has to drill much deeper down to reach this one. Cities can afford to get their water from this source, but many ranchers and farmers cant.BHP Billiton Petroleum Chief Executive J. Michael Yeager (left) on avisit to the Eagle Ford.of the Eagle Fordwill be the ability to apply that technologyelsewhere around the world.Adjusting to the marketLow natural gas prices in the United States have caused dramaticshifts in the way producing companies manage their fields. Suchcycles, driven by supply and demand, have been the nature of thepetroleum industry since 1859.In BHP Billiton Petroleums case, it has shifted assets to producemore hydrocarbon liquids and less dry gas. Since the Eagle Ford andPermian are its most liquids-rich fields, they are getting the mostattention. Near the end of 2012, the company was running 8 rigs inthe Permian Basin and 30 in the Eagle Ford.A new fleet of drilling rigs, most of them purpose-built for workingin shale, are now being delivered from fabrication yards on the TexasGulf Coast. Several units are already in service and the rest will be inthe field by mid-2013. By then, all 45 BHP Billiton Petroleum drillingrigs will be the safest, cleanest, and most energy-efficient in the field.A boost for local communitiesExploration, development, and production in the Eagle Ford Shalehas contributed to the economic revitalization of the region.To get enough water for drilling and hydraulic fracturing, we haveAccording to a 2012 study by the University of Texas at San Antonio, drilled a number of fresh water wells and turned them over tothe shale gas projects in 2011 alone generated just under $20 billionprivate landowners.qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 22. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND20 BHP BillitonTo get the water needed for drilling and fracing wells in theare typically used for drilling only one or two wells on a pad. ThatHawkville area of the Eagle Ford, BHP Billiton Petroleum is drilling equipment is easier to move from one site to another. The skidderthese extra-deep water wells and turning them over to privaterigs are designed to drill multiple wells on a pad. They are morelandowners in exchange for a share of the water. That gives it complex because they include a skidding system that allows thethe water it needs, and the property owners are happy to have aderrick to move quickly from one well to the next.reliable source of fresh water. How much is needed? The amountof water needed per well for hydraulic fracturing varies from oneIf the idea is to drill appraisal wells, as is done in the Permian, thenfield to the next, but three to five million gallons is a ballpark figure. the rigs need to be easy to move. If the rigs will be drilling largeWhile that sounds like a lot, it is small compared to the daily waternumbers of development wells, as they are in the Eagle Ford, thenconsumption of a power plant or the irrigation needs of a largerigs on skids are the answer.farm. To ensure that it is not taking too much water or harmingthe aquifer in any way, the company has retained the services of a All 45 of our new rigs have much better control systems than thePh.D. geologist who lives in the area. As a landowner himself, heunits they are replacing, Cardno adds. That makes them morerepresents the community and advises local water boards. suited to drilling the type of short-radius horizontal wells we want. These rigs can drill the curve and lateral sections of the wellboreThe drilling program much more efficiently and with a high degree of precision.When BHP Billiton Petroleum took over drilling in the Eagle Ford, it The new equipment is also more automated than ever before.put a lot more hardware in the field, including 30 new rigs built to Drillers, for example, can enter set points, then take their hands offits specifications.the controls and let the rigs computers guide the drill string.Our rig fleet is entirely composed of modern AC rigs split betweenThese advanced rigs are inherently safer than the older ones,fast movers and skidders, says Derek Cardno, the companys vice Cardno says. A lot of the hazards have been designed out.president for global drilling and completions. The fast moversA finished well site in the Eagle Ford field. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 23. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDBHP Billiton 21Were trying to change the way folks think about safety in their day-to-day business. Thats going to take constant vigilance.Vice President of Drilling Derek Cardno.Safely managing changenumbers of rigs. An engineer and superintendent work together, andeach has a certain number of rigs supported by a small team.With 45 drilling rigs in BHP Billiton Petroleums U.S. onshore fleet,part of the challenge is managing them consistently.The hard part is getting a consistent message across all workfronts, Cardno says. Were managing that through a lot ofWe are a bigger organization now, Cardno explains. Smaller interaction. I receive direct reports daily. We have a morningcompanies are used to working with fewer rigs. We work that way meeting every day to go through the operations and discuss issues.ourselves in the conventional business, where we had only eight orManagers do the same down the line.ten work fronts at any one time around the world. They were runby a small team. Everyone knew how each other worked. Now, in The drilling organization also brings all of the field personnel togetherthe unconventional plays, we are geared up to run 45 rigs and nineevery three to six months. The goal is to get the same message outfrac spreads, so we have 60-70 work fronts. That is a lot to get your to everyone about the companys expectations and its requirementsarms around. for safety, performance, and quality. It is also an opportunity to gainvaluable feedback from the field.Consistency is one of the most difficult things to achieve in dailyoperations. When you consider that the drilling program spans We are doing it with our service providers as well, Cardnonot only the Eagle Ford, but three other large fields as well, thesays. Weve met with vice presidents and CEOs of all our servicechallenge is huge.companies. We brought them all together to make sure everyoneunderstands what we expect in terms of safety, quality, andWhat Cardno and his team did is divide the drilling organizationperformance. Were making great strides, but we cannot getinto smaller, more manageable chunks: Drilling managers look over complacent. Were trying to change the way folks think about safety ina certain number of rigs. Drilling superintendents oversee smallertheir day-to-day business. Thats not going to happen overnight. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 24. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND22 BHP BillitonThe Permian BasinThe Eagle Ford is liquids-rich, but the PermianBasin, which covers some 75,000 square miles ofwest Texas and southeastern New Mexico,has a very high percentage of crude oil.Although BHP Billiton Petroleum is still drilling sine waves slowly through the earth, pushing up mountains in someappraisal wells, it is seeing liquid hydrocarbonplaces and leaving basins in between.production from shale in the range of 75 percent.The Permian is huge, and anything but consistent. There are multiplelayers of hydrocarbon-bearing rock with names like Wolfcamp,The best wells are in the 30,000 square-mile Midland Basin and inSprayberry, and a blend of the two known as the Wolfberry. Thethe smaller Delaware Basin, which lies to the west. Many operatorsPermian includes the north and south Midland basins, a Centralare working in various parts of the Permian, which accounts forBasin Platform and the Delaware Basin. BHP Billiton Petroleumsabout 20 percent of all the drilling in the United States today.BHP Billiton Petroleum has more than 440,000 acres of undevelopedland under lease. What is it finding? One of its appraisal wellspeaked out at 500 barrels of oil and six million cubic feet of gasper day. Its too early to tell how many such wells it will have, butits Permian drilling program calls for 60 new wells in 2013, andthe company is just getting started. An area known as the SouthMidland is largely unexplored, but many companies are starting todrill there now. It is a very new play for the industry in general, andthere is a lot of optimism because liquids production in some areascould be as high as 90 percent.Portions of the Permian Basin have been producing conventionaloil and gas since the 1920s. In 2012, the conventional part of thePermian produced the energy equivalent of a million barrels ofoil per day. Now, with the ability to recover hydrocarbons fromunconventional plays, production from the Permian could reach twomillion barrels per day by 2020.Challenging geology of the PermianThe basin itself was formed as part of the Ouachita orogeny,a 50-million-year era of mountain building caused when thecontinents we now call North and South America bumped togethersome 300 million years ago. The continental collision sent huge Lee Higgins is BHP Billiton Petroleums top geoscientist evaluatingthe Permian Basin.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 25. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDSafer and more efficient rigsForty-one of the rigs in BHP Billiton Petroleums45-rig fleet are new and purpose-built fordrilling in shale. The remaining four rigs are onlythree years old, which means that the companyoperates the most energy efficient, technically-advanced, and safest rigs in the field. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 26. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 24 BHP Billiton largest holdings are in the Midland, where the producing zone averages around 700 feet thick, and the Delaware, where the Wolfcamp interval is nearly 1,000 feet thick. By comparison, that is three to ten times thicker than most shale plays. Ive been working and studying this area since 1988, says Lee Higgins, the companys top geoscientist working on the Permian. When I saw how much acreage the company had, I was eager to work on the project. The Permian is a huge challenge, both from an operations standpoint and from a technical, scientific standpoint. For one thing, the shale is not really shale. What we have in the Wolfcamp is really a different type of rock, Higgins says. You wont find this in the Haynesville, Fayetteville, or Eagle Ford. It is different from the Bakken, the Marcellus, and the Utica. Those are all more classic shale plays. What we have in the Wolfcamp is actually mud rock, which implies that it was deposited differently than shale. Despite the regions long history of conventional production, there was little data on the layers known as the Lower Permian. Operations Engineer Phillip Schneider. The Permian is an old basin, Higgins explains. The rock changes vertically and laterally. It is not the same here as it is over there, so even nearby wells could have different characteristics. Every time we horizontal sections. Operators are trying both, and there are good get new data, we go back and rethink what we thought before. arguments for each approach. Vertical wells are cheaper to drill, but horizontals reach more of the reservoir. One question is whether it is better to drill vertical wells through the 1,000-foot thick producing zone, or to drill them with long Were exploring the concept of drilling stacked laterals, Higgins adds. That means a series of two or more horizontal wellbores, one above the other. The trick is where to put those laterals. Its important to remember that we have only drilled a handful of wells and we are still studying the results. We are just in the early stages here. Striking a balance The abundance of high-value liquids, particularly in the South Midland and Delaware basins, gives operators more flexibility in developing the field. Even so, it is important to control costs. Were drilling fairly long laterals, says Permian Production Unit Manager Doug Handyside. The idea is to touch as much rock as possible. Horizontal wells in the Delaware are 4,000 to 5,000 feet long. In the South Midland, were drilling 7,500-foot laterals, and some in the industry have drilled laterals up to 10,000 feet. Its likely that fields in the Permian will be developed using a mix of horizontal and vertical wells as companies decide which are thePermian Drilling and Completions Manager Paul Kelly (left) with Drilling most economical for their portions of the play.Supervisor Daren Mahoney.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 27. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDBHP Billiton 25Our initial assessment of development potential here suggests that gas would be dehydrated and compressed and either processedwe will recover only about five percent of potential hydrocarbonor simply sold into a third-party line. We are also building a smallin place. The upside is enormous if we can double that to onlycryogenic plant to process our own gas in the Delaware Basin.10 percent. I believe that in five to ten years, well be there.Another challenge, besides separating the production intoGrowing pains marketable products, is how to get them out of the field.There is limited infrastructure capacity in the Delaware and SouthThe pipelines coming out of west Texas are full of oil, HandysideMidland fields to accommodate the rapid pace of drilling, but explains. The pipelines that handle the NGL mix are almost full.operators are catching up. Typically, collections of nearby wells willThere is enough pipeline capacity to handle the dry gas, but gettingflow to pads or tank batteries to begin separating the oil from the liquids out has been an issue.natural gas liquids and dry gas. The oil and condensate is typicallystored at the lease site and trucked out. Pipeline companies are beginning to move in, expanding theircapacity and building new lines. The lag in infrastructure is mainlyFor the gas, we propose to build infield gathering systems and due to the rapid increase in liquids production as the unconventionalroute it to a central distribution point, Handyside says. There, thereservoirs in the Permian are developed.Operations Supervisor Brian Downing (left) and Production Supervisor Dennis Winowiecki at the site of a new gas plant under construction. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 28. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND26 BHP BillitonThe Haynesville ShaleIn 2007, the Haynesville Field in northwesternLouisiana did not exist. Today it is among thelargest gas fields in the United States.Technically known as the Haynesville/Bossier The Haynesville shale currently produces enough natural gas toShale, this play is remarkable for several reasons.satisfy 10 percent of U.S. demand. BHP Billiton Petroleum is one of the largest leaseholders in this field, as it is in the Fayetteville play toLike other shale developments in the BHP Billiton the north in Arkansas.Petroleum portfolio, this one is big. The entireplay straddles east Texas and western Louisiana. Even if U.S. gas prices trend low through 2013, the HaynesvilleMost of the companys portion of the field is in shale still contains enough easy-to-recover hydrocarbons to make itLouisiana, where the producing zone is up to 300 profitable. The wells are fairly deep, but the shale is easy to frac.feet thick and the reservoir pressure is relativelyThe companys strategy for the Haynesvillegiven the prolific Permian Basin and Eagle Ford plays in its portfoliois to continuehigh. The rock is also hydrocarbon-rich, and the drilling at a moderate pace. It has enough rigs to keep its drillingwater saturation is low. teams busy and support its contractors. When dry gas prices in the United States firm up, the company can pick up the pace. There are places inthe Haynesville whereneighbors can see ouroperations from theirback porch.BHP Billiton Petroleums new office building in Shreveport,Louisiana, will double as a training center for new employees. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 29. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 27Here to stayDrilling continues in the Haynesville even inthe face of lower natural gas prices. Part of thecompanys strategy is to maintain a solid base ofcontractors and experienced crews so they willbe available when the market rebounds.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 30. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND28 BHP Billiton The neighbors Unlike the Permian and Eagle Ford fields, there are places in the Haynesville where neighbors can see BHP Billiton Petroleum operations from their back porch. A two-well site near Shreveport is about 1,000 feet from the home of a retired federal judge and a church, and the Red River is just across the highway, says Haynesville Production Unit Manager Greg McCain. Another site is about the same distance from a school. Even though BHP Billiton Petroleum is new in town, its employees are not. External Affairs Manager Tommy Clark has lived in Shreveport more than 25 years. He has a business background and has worked extensively with local and state governmental agencies. When working so close to the community, Clark says, we go out of our way not to be a nuisance. We are sensitive about noise, for example, so fracing operations are typically restricted to daylightExternal Affairs Manager Tommy Clark (left) and Haynesvillehours. In the case of the nearby school, we waited until ChristmasProduction Unit Manager Greg McCain. break to complete the well.In the Haynesville area there is plenty of surface water available. Much of it comes from the Red River.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 31. qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 29To conserve water and avoid the high cost of disposal, much of the produced water from BHP Billiton Petroleum wells is stored on site in tanksand reused for hydraulic fracturing.Responsible water use communities. Where we are close to the river, we pull water fromthere. We also drill water wells into the Red River alluvial, which isIn most areas where operators use hydraulic fracturing, finding where the State of Louisiana wants us to drill.enough water is a problem. Not so in the Haynesville, wheretheres plenty of surface water available. Much of it comes directlyWhat about the water that is not recycled? In the Haynesville, therefrom the Red River or ponds that have been built to hold frac arent many disposal wells, so that also drives the effort to recycle.water. The bigger challenge is what to do with water that comes Although weve been in the Haynesville a relatively short time, theback to the surface after a frac job, and what comes up from theequipment and practices we have in place so far allow us to reuseproducing wells.more than 40 percent of all the water from hydraulic fracturing, andthe company is constantly improving on that.We recycle and reuse as much water as we possibly can, McCainsays. We dont pull water from freshwater aquifers that supply ruralqMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 32. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND30 BHP BillitonThe Fayetteville ShaleThe Fayetteville is a giant field that covers a largeamount of central Arkansas. Its wells are shallow,predictable, and remarkably productive.BHP Billiton Petroleum purchased the asset inResponsible water useApril, 2011. Since then, the company has hired There are more than 3,000 wells in the Fayetteville area. BHP Billitonmore than 250 workers. While the level of activity Petroleum operates about 800 of them. Together, those 800 wellshas been scaled back due to lower than expectedproduce around 10,000 barrels of water per day, and something hasnatural gas prices, Fayetteville continues to be a to be done with it.major part of its onshore oil and gas portfolio. The previous company primarily trucked the produced water toThe previous operator was very good at identifying the plays, disposal wells, Skaufel says. All of the injection wells were in thegetting the land, and appraising it, says former Fayetteville heart of the field. Right about the time we took ownership, however,Production Unit Manager Rob Skaufel, and now BHP Billitona series of small earthquakes swept this part of Arkansas. A similarPetroleums President of global Conventional Production. Nowthing happened 50 years ago. We thought the recent quakes werewe are at the point of developing the acreage.a repeat of the older ones, but we wanted to make sure they were not related to our water injection wells. We did a study, and evenIt was exactly the time to step in. As a large international oil though we did not find evidence that our wells caused the problem,company, BHP Billiton Petroleum brings resources, financial strength,we could not prove they didnt, so we voluntarily shut them down.and a depth of experience that smaller companies seldom have.Take safety, for example.The water disposal costs shot up, from $2 a barrel to as much as $15. Waste water had to be trucked to disposal wells as far away asOur way of doing things is based on our experience offshore, eastern Oklahoma.Skaufel says. Safety is the highest priority in the company. We bringestablished systems and processes developed offshore and adaptthem for onshore operations.The same culture of safety and operational integrity shows in theOur way of doingway the fields are being developed, Skaufel notes.things is based on ourWe do assessments and baseline studies that cover a 1,500-foot radius around each well. If there are existing water wells orexperience offshore.sources of surface water, we sample them to be sure we know whatcondition they are in before we drill, then we sample them againSafety is everything.later to see if there is any change. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 33. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 31 Efficient design Skid-mounted drilling rigs such as this one are much more efficient for drilling multiple wells on a single pad.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 34. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND32 BHP BillitonThe final stage of building a well is to run all of the fluids through a test separator like this one to determine the exact amount of water, oil, andnatural gas the well is producing. (Photo courtesy Cameron)We were still doing that when I joined the company in August, Drilling efficiency2011, says Operations Specialist Corey Riddle. Disposal is still themost direct way to handle produced water, but we think its better In 2011, it was taking a month to drill the average Fayetteville well.to recycle as much of it as we can. Through a process of continuous improvement, crews are now doing the same in less than half the time.Thats easier said than done in a field where the wells are widelyspaced and set among rolling hills. Riddles answer was to group On the south end of the field, it is not unusual to take 20 days towells to one of four water-collection hubs. That did two things: Itdrill a well, but in other places we have come down to 10 days,made the collection system more efficient, and it took a lot of bigsays Fayetteville Drilling Superintendent Bill Robinson. There aretrucks off the road. many things we have been doing to improve the efficiency and safety of our rigs.If one truck holds 100 barrels (4,200 gallons) of water, and weneeded to dispose of 10,000 barrels of produced water a day, thatMost of the drilling has shifted to the liquids-rich Eagle Ford area,means 100 trucks were picking up the water and driving four to and an increasing number of rigs will go to the Permian. Even so,eight hours to the disposal site, Riddle says. That was not only Fayetteville has the potential to be a major producer of natural gaswasteful, it was a safety risk. Now the system is more localized, andfor the next 50 years. The current development plan is to continuemuch of our produced water is being treated and recycled for fracing drilling through the middle of 2020.nearby wells. Our highway truck traffic is down substantially. Even with low gas prices, we are still drilling economic wells,While truck traffic is down, the amount of water being recycledRobinson says, but for now, we have dropped our rig count inis way up. Fayetteville from a high of 13 down to two. We dont want to lose the momentum and capability we have gained over the last year,When we first started to focus on water use, we were recyclingboth internally and with our contractor base. If the U.S. demand forabout 10 percent, Skaufel says. By April, 2012, it climbed as high natural gas comes back as quickly as it fell, we want to be able toas 85 percent, and there have been weeks since then that we were meet the need.recycling 95 percent of our water.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 35. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 33Much of our produced water is being treated and recycled for fracing nearby wells. Operations Specialist Corey Riddle. BHP Billiton Petroleums newest wells in the Fayetteville use composite trees that are more compact than conventional frac trees. They are also safer, since operators can reach all of the controls from a comfortable height, rather than having to use a lift. (Photo courtesy Cameron)qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 36. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 34 BHP Billiton Zero Harm BHP Billiton Petroleum operates under the principle of Zero Harm to people and the environment. In many locations, the companys policies set the standard for smaller operators. As a globally significant producer, exporter, its history, and it places BHP Billiton Petroleum firmly in the top 10 and consumer of energy, BHP Billiton Petroleumpercent of the industry. is committed to managing its greenhouse-gas My group supports them, says HSEC Vice President Kristen Ray. emissions. The company actively seeks to reduce In our North American Shale operations, our first remit is getting water usage and carbon emissions across its the basics right. Much of our work involves regulatory compliance business, and publishes the results in its annual Sustainability Report. BHP Billiton Petroleum is one of the safest oil and gas companies in the industry. It works at it. Its programs aim to identify all risks so they can be understood and controlled. That means the company investigates every incident to determine the root cause and prevent it from happening again. Since 2006, BHP Billiton Petroleum has experienced continuous improvement in its Health, Safety, Environmental and Community (HSEC) programs. In fiscal 2012, the total recordable injury rate within its conventional business was 1.34, which is the best-ever inWe look at risks and what we can do to prevent injuries. That always comes first. HSEC Vice President Kristen Ray. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 37. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 35Operations Engineer Tommy Roberts (left) and Drilling Superintendent Orville Crandall.and our license to operate. We look at risks and what we can do toprevent injuries. That always comes first.The companys rapid growth in 2011 and 2012 meant hiring a lotof people, not only on the drilling and operations side, but alsothe HSEC professionals needed to support them. Up and down theline, all of those new employees needed to learn how BHP BillitonPetroleum works.We have to communicate and train and make people aware of whatthe company expects, especially in terms of safety, Ray says. We arestill in the early stages of that journey. We are establishing baselinesfor compliance and learning where our opportunities for improvementare. From there, we can build on improvement and driving culturalchange. But it is a journey that will take several years.The lessons the company has learned in the conventional oil andgas business are now being applied to each of its four giant fieldsin the Onshore United States. The companys goal is to become thesafest company in the industry. It is proud of its achievements sofar, and is confident that it will continue to make progress towardsits goal of Zero Harm.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 38. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND36 BHP BillitonGood NeighborsBHP Billiton Petroleum employees live wherethey work, and they try their best to contributeto the lives of those around them.Its more than just getting along. Whenever BHPBilliton Petroleum joins a new community, itstudies the quality of life as well as the social andeconomic environment to find areas to target forcommunity development.Each community is differentWorking in various locations would be easier if all situations werethe same, but theyre not. In south Texas, for example, there are fewlarge cities but many smaller communities.One in particular is the town of Cuero in DeWitt County, whichlies within the very active Eagle Ford basin. BHP Billiton PetroleumBHP Billiton Petroleum has donated $30,000 per year throughhas more than a dozen rigs working nearby, and there are otherthe Thea Foundation to support rural school art programs in theFayetteville area.operators in the area. The company knows that puts a strain onthe local infrastructure. To help compensate, it voluntarily paysthe county of DeWitt a per-well fee to help offset the cost ofmaintaining the roads.In a broader context, company employees also meet regularly withlocal officials to address their concerns. It realizes that it affectsthese communities, and it wants to do everything it can to help out.Economic growthCommunity relations aside, the most widespread benefits for everypart of the country where U.S. onshore oil and gas development isbooming are the good-paying jobs, business income, and tax revenuethat development brings. The Fayetteville play in Arkansas is a primeexample, according to a 2012 report from the University of ArkansasKids everywhere love to paint.Center for Business and Economic Research. The study highlights theqMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 39. qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 37many direct ways the state benefits, and hints at the indirect gains forof Arkansas study adds that even with the slowdown in the U.S.restaurants, hotels, retail stores, and other local businesses. economy in general, five out of the nine Fayetteville Shale countiessaw higher than expected growthThe average pay of oil and gas workers, for example, is twice theaverage for all other industries in the state. New businesses inAccording to the Texas Railroad Commission, the Eagle Fordcentral Arkansas have also increased at a higher rate than the stateproduced 308,139 barrels of oil in 2009. That jumped to 4.3 millionin general for the past ten years.barrels in 2010 and then to an astounding 36.6 million in 2011.In 2009, 19 billion cubic feet (Bcf) of dry gas and 839,490 barrelsManufacturing jobs are coming back. Theres a new $100 millionof natural gas liquids (NGL) were produced. Those figures jumpedplant in Saline County that makes ceramic proppant for use in to 287 Bcf of dry gas and 7.0 million barrels of NGL in 2011. Thehydraulic fracturing. Two manufacturing plants in Arkansas andCommission predicts that the Eagle Ford will continue to shattera sister plant in Missouri hired a total of 1,000 people to build even these output figures in the years to come.railroad cars to haul sand to the oil and gas fields. The UniversityA BHP Billiton Petroleum employee watches activities at the Main Street Searcy Festival in Searcy, Arkansas.qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 40. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND38 BHP BillitonAvoiding potentialroadblocksIn rural areas, the economic benefits of oil and gasdevelopment come with their own set of challenges. Rural roads were never meant for heavy use, but drilling and fracturing a single well requires hundreds of trips to and from the well site in trucks weighing up to 40 tons each. Just moving drilling rigs over county roads can amount to the wear and tear of years of normal traffic. Companies like BHP Billiton Petroleum recognize that, and have stepped forward to help address the problem by offering to compensate counties to offset the extra traffic their operations bring. For example, until a permanent and equitable solution can be found, BHP Billiton Petroleum has been voluntarily paying DeWitt County a per-well fee as a way to offset the cost of maintaining the roads. Everyone knows, however, that the current arrangement is only an interim solution. Good roads are good for business, Fowler says, but at the county level, we just dont have the revenue to maintain them without someDeWitt County Judge Daryl L. Fowler is the highest elected publichelp from the state.official in his county. Part of the problem is the way tax money is allocated. While the State of Texas receives all of the royalties for oil and gas productionWhere will all the new workers live? Are there enough restaurantson land where it owns the mineral rights, the money is notand stores in small towns to support the rapid increase in earmarked for roads.population? Are there adequate medical facilities and schools? Inmost cases, local governments, enterprising individuals, and private For the first six months of 2012, oil and gas companies operatingcompanies are rushing to fill the gap. in DeWitt County paid $71 million in severance taxes to the State of Texas, Fowler says. DeWitt County didnt get a nickel of it.But what about the roads? asks DeWitt County Judge Daryl Fowler. But the judge is hard at work with the state legislature to find aHis jurisdiction, a rural area in south-central Texas, sits atop the permanent solution. It is a classic case of industry and government richest part of the Eagle Ford Shale. DeWitt County maintains 689at the both the local and state level working cooperatively to themiles of road, and 342 of them are simple gravel or asphalt lanes. benefit of all concerned.DeWitt Countys growing pains are typical.qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 41. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDBHP Billiton 39 nBig trucks for big jobsThe high volume of truck traffic onrural roads is a problem the industryand host communities are dealingwith in almost every region whereshale oil and gas is being developed. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 42. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTANDqMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 43. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qM M Mqq QmagsTHE WORLDS NEWSSTAND Company Profiles 42 Cameron 46 Baker Hughes 48 Celerant 50 FTS International 52 GE Oil & Gas 54 Halliburton 56 Jacobs 58 Nabors 60 Jet Maintenance 61 Schlumberger CustomPublishingVP, PennWell Custom Publishing PennWell Petroleum GroupRoy Markum 1455 West Loop South, Suite 400roym@pennwell.comHouston, TX 77027 U.S.A. 713.621.9720Managing Editor andfax: 713.963.6285Principal WriterRichard Cunningham PennWell Corporaterichard@rcunninghamstudio.comHeadquarters 1421 S. Sheridan Rd.,Art Director Tulsa, OK 74112Meg FuschettiP.C. Lauinger, 19001988Production Manager Chairman, Frank T. LauingerShirley Gamboa President/CEO, Robert F. Biolchini qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qM M Mqq QmagsTHE WORLDS NEWSSTAND 44. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND42 BHP BillitonCOMPANY PROFILECAMERONBHP Billiton Petroleum Taps Frac Equipmentand Services Leader Cameron for Shale,Deep Permian Basin DevelopmentProviding enhanced uptimethrough high-integritycritical frac equipmentmonitored by FracServ,Camerons Valve IntegrityProtection Plan (VIPP)BHP Billiton Petroleum is acceleratingdevelopment of both dry gas and liquids-rich shale gas formations such as thosefound beneath its extensive leaseholdings in the Fayetteville and Eagle Fordshales, among other domestic tight gasregions. The company also is ramping uphorizontal drilling and completion of moreconventional deep, oily gas formationslocated in the greater Permian Basin. Cameron recently entered into a five-year fixed contract to provide BHP Billiton Petroleum with flowback services in the Fayetteville Shale Play.Working hand-in-hand with BHP BillitonPetroleum in developing shale gas andliquids production and other tight gas systems critical to BHP Billiton Petroleumssands is Cameron, whose Surface Systemsfracturing and well completion operations indivision provides integrated well surfacethe shale areas, Cameron recently enteredequipment and services for high-pressure,into a five-year fi xed contract to provide ithigh-fluid volume fracturing, flowback with flowback services in the Fayettevilleoperations and well testing. Shale play.Cameron is among top manufacturers and One main reason for partnering withsuppliers of high-quality, reliable pressure Cameron is its ability to provide high-control and flowback equipment to ensure integrity equipment and systems, a crucialenhanced results from ever larger high-aspect for an operator in mitigating HSSEpressure frac operations with higher fluid issues as well as risks associated withvolumes that cost tens of millions of dollars. horizontal drilling and hydraulic fracturing.The two companies have maintainedAs a responsible operator, BHP Billitonan extensive global relationship withPetroleum is conscientious of protectingregard to subsea oil and gas operationsits personnel and contractors on locationin the offshore environment, as well asas well as the communities in which itin conventional land-based development.drills. The selected supplier must be ableThey have carried that association further to provide high-quality equipment andas a result of BHP Billiton Petroleumsservices of such integrity that it alleviatesacquisitions of its large lease holdings inCameron supports its flexible failures. Risk mitigation starts with reliable,shales. In fact, in addition to providingsolutions with highly trained, high-quality equipment, but is sustainedits full range of flow control products andcompetent service technicians. by proper monitoring and maintenance, as qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 45. qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND BHP Billiton 43provided by FracServ, Camerons Valve handle the challenges that are unique tocaused by a gate valve failure is idle timeIntegrity Protection Plan. this fast-growing element of our industry.for an expensive frac crew.A top choice gate valveFrac service is about as harsh as itA key component of Camerons products,for Frac Operationsgets. Gate valves are exposed to nearly including frac manifolds and frac trees, isAs a leading provider of critical and high-continuous service, flowing and controlling its internationally recognized FLS-R gatepressure control equipment, Cameron is high-pressure, high-volume, abrasivevalve, which provides operators with high-committed to providing effective, safe,frac fluid for days, and even weeks, on quality metal-to-metal sealing to deliverreliable, and cost-effective products to end. And the cost of failure is high. Delay design dependability and durability within harsh and erosive operating environments. The FLS-R gate valve has established a worldwide reputation as a top choice valve for fracturing operations in both conventional and unconventional resources areas. It is designed, developed, and qualified by Camerons engineers. As all Camerons large-bore and high-pressure gate valves, the FLS-R is manufactured in-house at the companys state-of-the-art manufacturing facilities. It has a reputation for excellent performance earned in tackling a long list of extreme applications. For fast, positive remote operation, Cameron provides the FLS-DA2 gate valve. It has a simple design with all the metal sealing features of the FLS-R, but with a double-acting hydraulic actuator. FracServ Monitoring fatigue life of critical frac equipmentCameron offers composite frac tree systems. By incorporating the master and swab valves, Typically, surface frac equipment isand wing outlets into a solid body, the number of potential leak path connections as wellsubjected to a series of forces thatas the tree height and weight are reduced. serve as drawbacks to an efficientA key component of Camerons products, including frac manifolds and frac trees, is its Cameron is among top manufacturers andinternationally recognized FLS-R gate valve, which provides operators with high-qualitysuppliers of high-quality, reliable pressuremetal-to-metal sealing to deliver design dependability and durability within harsh and control and flowback equipment.erosive operating environments.qMqM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND 46. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND44 BHP Billiton Leveraging Technology Accustomed to high-end technology in its offshore development projects, BHP Billiton Petroleum is naturally interested in any technology that offers efficiency, promotes safety, and minimizes downtime for its onshore shale operations. Partnering with an industry leader such as Cameron offers access to technology and new innovations that have the potential to be game changers. Cameron already offers composite frac tree systems as an alternative to conventional frac tree systems. By incorporating the master and swab valves, and wing outlets into a solid body, the number of potential leak path connections as well as the tree height and weight are reduced. Taking the compact conceptThrough the FracServ Valve Integrity Protection Plan, Camerons competent fieldfurther, Cameron expects to launch itsinspection specialists follow a set of procedures written by the companys design andnext generation frac tree, the F-T90 inquality engineers to assure the integrity and service performance of its frac fleet. early 2013. This new design is expected to not only offer a smaller footprint and reduced height, but further enhance theand successful operation. TheseFracServ is that it mitigates safety andintegrity of overall frac operations.include high-working pressures, high environmental risks while enhancing anvolumes of abrasive frac proppant peroperators fracturing uptime. As with all Camerons frac trees, thestage, highly corrosive fluid additives, F-T90 can be operated with pneumatic,equipment vibration, oscillation,bending loads due to pump cavitations,shrapnel from perforated casing, andthe debris resulting from drilled-outisolation plugs. These effects resultin flow-bore erosion, wetted surfacecorrosion, high and variable loads inpressure vessels, and similar bendingloads in equipment bolting.The philosophy of knowing the severityof such effects is the crux of theCamerons FracServ Valve IntegrityProtection Plan, which the companyprovides for its manufactured surfacefrac equipment. Through FracServ,Camerons competent field inspectionspecialists follow a set of procedureswritten by the companys designand quality engineers to assure theintegrity and service performance ofits frac fleet. Although a vigorouscommitment, the company believesthis principle offers better protectionto shale operators than a flush and Accustomed to high-end technology in its offshore development projects, BHP Billitontest approach. The latter procedure Petroleum is naturally interested in any technology that offers efficiency, promotesrequires little to no disassembly and, safety, and minimizes downtime for its onshore shale operations. Partnering with anat best, limited verification of trapped industry leader such as Cameron offers access to technology and new innovations thatdebris. The bottom line for Cameronshave the potential to be game changers. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 47. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDThe ECO2 System accurately measures production, reduces emissions, and collects natural gas liquids for transfer.hydraulic, or electric actuation. TheThese innovations, when ready for market, and brings to the table a heritage ofelectric frac tree actuation control system, will allow operators a more secure andindustry leadership, a reputation formanufactured by Cameron, minimizes defensive option than current practices technically sound products, qualitypotential damage to vulnerable hydraulic with frac iron. in-house manufacturing, reliable productpower units or to the lengthy, leak-proneperformance, and service excellence.hydraulic lines that typically meander From an ecological standpoint, Cameron isaround wellsite equipment. also taking initiative in green innovations Cameron is a leading provider of flow with its ECOnomical and ECOlogical (ECO) equipment products, services, and systemsThe equipment and technicians required toproduction system. Using a three-phaseto worldwide oil, gas, and process industries.hydraulically fracture a well are expensive. separator (oil, gas, and water), a stabilizer Leveraging its global manufacturing,When drilling a single well, a significant and a natural gas powered generator,engineering, and sales and services network,amount of idle time is imposed on theseCameron is able to environmentally controlCameron works with customers to control,costly resources. A frac manifold canhigher gravity oils and natural gas liquids direct, process, measure, and compressprovide for almost continuous utilizationwithout the release of Volatile Organic pressures and flows.of the frac crew and equipment, from Compounds (VOC). Typically, vapors fromthe first treatment at the toe of thea storage tank need to be controlledfirst well to the last treatment at the(that control method includes flaring theheel of the last well. This represents a vapors or utilizing a vapor recovery unitsubstantial improvement to the effective to recompress them to a higher pressure)use of the frac resources and, thus, to theand subsequently moved to a pipeline forCameronoverall economics of the well. Camerons transport. The ECO production system 4646 W. Sam Houston Pkwy. N.Generation II Frac Fluid Delivery System does not allow the vapors to be generated.Houston, TX 77041(FFDS) is an improvement of the currentThey are kept under pressure until they getfrac manifold design. It is a solid mono-to a point where they can economically beTel 1.713.939.2211line solution that utilizes API standardscollected and sold.Fax 1.713.939.2753and controlled bolted connections that www.c-a-m.compromote a higher level of system integrity,The rapid growth in the production of shaleand hence, safety. Parallel to this effort,oil and gas in recent years has broughtCamerons engineers are working on a phenomenal growth as well as uniqueGen III design that may well become achallenges to our industry. Camerongame changer to the industry.is actively resolving these challenges qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 48. qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND46 BHP Billiton COMPANY PROFILEBAKER HUGHESBaker Hughes has the technologicalsolutions to meet oilfield challengesEvery shale play presents a diverse rangeFor the demanding build and lateralof challenges, and those challenges requiresections of the Eagle Ford wells, Bakera service company with equally diverse Hughes drilling systems, when matchedexperience. Baker Hughes is a global oilfieldwith application-specific bits, provideservices company that offers a wide array of an unrivaled level of drilling serviceproducts and services to operators, includingperformance. Our latest RSS and high-the expertise of scientists and techniciansperformance motors let operators drillwho can bring the right mix of knowledge curve and lateral sections using the sameand tools to characterize reservoirs, drillequipment, lowering cost and reducingboreholes, evaluate formations, cement operating time, said Mathias Schlecht,casings, run completions, and stimulate andBaker Hughes Vice President of Technologymonitor production. The companys abilityfor Drilling and Evaluation. Theto leverage enterprise capabilities resultsAutoTrak Curve RSS allows high buildupin better wells, improved productivity, andrates, extended-reach laterals, precisecontinued safety.wellbore placement, and a reduction in time on the well by drilling vertical, curveWith the integration of pressure pumping and lateral sections in one run.services, Baker Hughes commitment to Baker Hughes is a leading supplier ofdelivering safe and effective solutionsThe Hughes Christensen Talon high-oilfield services, products, technology, andthat maximize asset value while meetingefficiency PDC drill bits are designed systems to the worldwide oil and naturalenvironmental responsibility goals isin conjunction with Baker Hughesgas industry.stronger than ever.AutoTrak Curve RSS. Working together, these technologies meet the challengesFor decades, Baker Hughes has helped of drilling unconventional plays withshale solutions, including Baker Hughesoperators overcome operational hurdles inexceptional accuracy, reliability, and StarTrak imaging tool, which identifiesTexas. In the Eagle Ford Shale, for example, speed. Weve seen some really great natural and induced fractures whileone of the most prolific fields in the U.S., performance with our Talon bits, said drilling, and characterizes the horizontalBaker Hughes has drilled more than 1 Mark Freeman, Baker Hughes Director offor optimal zone placement and maximummillion feet, and has been actively involved U.S. Land Sales. Our StaySharp cutters production potential.in 97% of all wells in the Eagle Ford to date. keep the bit efficiently drilling longer soThe company has played a significant rolerun life is maximized with higher ROP, The LATIDRILL system is one of thein the successes that BHP Billiton Petroleum helping to reduce the days on the well. companys latest additions to the(BHP) has experienced in the liquids-rich SmartCare family of environmentallyEagle Ford and Permian Basin. Baker Hughes Customizable, environmentallyresponsible solutions. Baker Hughes is theplans to be there for the long haul, providing responsible drilling fluidsfirst oilfield services company to applythe expertise and high-tech equipmentBaker Hughes LATIDRILL drillinga comprehensive chemical evaluationnecessary to produce these fields. fluid system is an integrated water- process to products beyond those used in based platform customized to address hydraulic fracturing. The expansion offersIntegrated bottomhole assembly multiple drilling objectives withadditional responsible, high-performingoptimizes well placement improved performance compared to the chemical products to operators. As newand ultimate recoveryconventional water-based mud systems.requirements take shape, the SmartCareThrough a combination of Baker It provides aggressive attributes that family will be continuously updated andHughes bits, motors, rotary steerable supersede invert-emulsion systems in expanded so Baker Hughes customers cansystems (RSS), and real-time logging terms of speed, wellbore protection, and confidently comply with regulations andtools, the company can engineer an cost reduction. The platform capabilitiesstill deliver on production targets.integrated bottomhole assembly tohave further enabled operators to set newoptimize well placement and ultimate performance, HSE, and cost benchmarks in Effective zonal isolationrecovery. Baker Hughes is able to seechallenging drilling operations. A high-quality cement job is an importantthe reservoir, often in great detail, withaspect of any well. Baker Hughes beganthe use of our advanced visualizationThe drilling fluid system can be packagedworking with BHPs predecessor in theand modeling tools.with the full range of Baker Hughes Eagle Ford in 2008. The initial cement slurry qM qM Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 49. qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTANDBHP Billiton 47designs were taken from extensive andthat the companys customers canoptimize and enhance operators wells andsuccessful work Baker Hughes had performed depend on to fracture against. In orderproductivity, Stephens continued.in the Haynesville area. Before applying Baker to effectively stimulate the Eagle FordHughes engineered Set for Life slurrylaterals, BHP has looked to Baker Hughes One solution with the potential todesigns to the Eagle Ford, it was matched to composite plugs since 2010, said Justinenhance long-term production is Bakerthe Eagle Fords unique requirements.Dworaczyk, Baker Hughes MarketingHughes Sorb family of solid inhibitors. Director for Completions and Wellbore MultiSorb technology allows theSlurry properties were systematically fine-Intervention. Since then, we have runcombination of two or more Sorb chemicaltuned to provide effective zonal isolation,4,575 composite plugs with a nearly products in treatments designed towhich is necessary for complex hydraulic 100% success rate. address multiple issues simultaneously. Infracturing of lateral sections. The addition the Eagle Ford Shale, the technology hasof unique spacer technologies, such as More technology for been used to treat paraffin, asphalt, andBaker Hughes exclusive SealBondoptimal performance biocides, among other issues.cement spacer systems, allows for cement Baker Hughes electrical submersibleand fluid lift without losses to formation pumping (ESP) systems optimize production Technology and trainingwhile providing a water-wet coating for thousands of wells around the world Baker Hughes technology and educationall important factors in achieving a goodin a broad range of applications. After centers help accelerate the delivery ofbond. Baker Hughes state-of-the-art,installation of a Baker Hughes high-advanced technology to the market.fully automated Falcon cementing unitsvolume ESP system into one of BHPs Among the companys multiple worldwideprovide quality operations.wells, as an alternative to drilling five technology and education centers and water supply wells, the rate at which water laboratories is the Baker Hughes CenterAdditionally, Baker Hughes reliable was produced from the supply well to fill for Technology Innovation (CTI), located incomposite plug systems provide a barrier the tank for the pressure pumping job Houston. CTI develops new solutions for increased 250%. This decreased the time the industrys toughest completions and between well completions by as much asproduction challenges. five weeks, allowing BHP to return to its planned drilling pace.Baker Hughes global shale teams also are supported by a drill bit manufacturing Wells in the Haynesville shale can have a plant in The Woodlands, Texas, and a high level of hydrogen sulfide, which often Pressure Pumping Technology Center leads to internal corrosion of production in Tomball, Texas. The Tomball campus equipment. Baker Hughes has developed has well-equipped laboratories that do a unique suite of production chemicalseverything from mineralogical identification to deliver total production solutions thatto determining the compatibility of the are delivered via capillary services. Baker formation with completion, fracturing, and Hughes also offers robust chemical-feed stimulation fluids. and tank-monitoring services. For more information about Baker We successfully treat Haynesville wells by Hughes technologies and solutions, continuously injecting a combination high please contact Anthony Hooper at temperature scale-corrosion inhibitor, 1 281-357-2647 or review our website at said Don Brookshire, Baker Hugheswww.bakerhughes.com. Sales Director for U.S. Land Production. In addition, our comprehensive deliquification chemical services helpBaker Hughes production flow again. 2929 Allen Parkway We not only address the immediateHouston, Texas 77019 demands of increasing production andPhone: +1 713-439-8600 reducing downtime, but we also reviewFax: +1 713-439-8699 the application, cost, and effectiveness ofwww.bakerhughes.com our scale control program on a continuous Email: pamela.easton@bakerhughes.com basis, said Douglas Stephens, Baker Hughes President of Pressure Pumping.Baker Hughes PETROSWEET hydrogen We have the expertise to understandsulfide scavengers sweeten natural gas the reservoir and then bring the rightand produced fluids. mix of technologies and products to qM qMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next PageqM M Mqq QmagsTHE WORLDS NEWSSTAND 50. qMqMPrevious Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page qMMMq q Qmags THE WORLDS NEWSSTAND48 BHP Billiton COMPANY PROFILECELERANT CONSULTING, INC.The meter is running on your supply chainLet us say that the land drilling rig rentals mobilize equipment and service contractors with logistics, and doing anything it canand contractors are costing you $75,000 for each job. How will a delay or shortage to stay up with changes in the field. It cana day. How much time are you willing to today affect not only that well location, butseem like a never ending battle.spend waiting for someone to deliver athen the next well location, and possibly$500 flange? What about the frac spread the sequence of well locations where those The fundamental challenge is one ofthatthrough some mix-upshowed upsame resources will be used down the integrating the two sides: field operationsa day early and is now charging $25,000 road? When you then consider multipleand supply chain.an hour to sit around? Remember when a(sometimes several) rigs, trucks, equipmentload of pipe