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  • International Petroleum News and Technology | www.ogj.com

    JULY 6, 2015 | USD 10

    MIDYEARFORECAST

    ETHYLENEREPORT

    EASTERN CANADA READIES DEEPWATER

    EARTH MODEL AIDS ASSET VALUATION

    OIL PRICES HISTORY REPEATING?

    UK GAS STORAGE DEVELOPMENT

    150706OGJ_C1 1 6/30/15 2:02 PM

  • LET'S WORK.

    From the plant oor to the executive suite, a single device is now

    capable of protecting your people and impacting the operations

    and economics of your entire organization. The Meridian gas

    detector does just that, detecting both combustible and toxic gas.

    A single detector head easily accepts all sensor types its simply

    plug and play. Learn how the Meridian universal gas detector is

    redening universal. Visit www.UniversalByScott.com

    Introducing

    2013 Scott Safety. SCOTT, the SCOTT SAFETY Logo and Scott Health and Safety are

    registered and/or unregistered marks of Scott Technologies, Inc. or its afliates.

    150706OGJ_C2 2 6/30/15 2:02 PM

  • Data integration for safer, more efcient production

    In the fast-paced world of unconventional oil and gas production, decisions

    need to be made quickly and accurately. The integrated eld, consisting

    of Experion SCADA and the Honeywell RTU2020 with metering equipment

    and eld instruments makes commissioning, controlling and monitoring

    wellhead production easier, more efcient and safer in all conditions. If you

    havent looked to Honeywell for onshore production solutions, nows the time.

    Discover Honeywell.

    dare to discover

    For more information about Honeywells Onshore Solutions,

    visit www.honeywellprocess.com/oilandgas

    2015 Honeywell International, Inc. All rights reserved.

    150706OGJ_1 1 6/30/15 1:47 PM

  • FIG. 1WORLD OIL MARKET AT A GLANCE

    FIG. 1a

    95

    96

    Supply

    Demand

    94

    93

    92

    91

    90

    89

    Million, b/d

    FIG. 1b

    2.0

    2.5

    1.5

    1.0

    0.5

    0.0

    -0.5

    -1.0

    Million, b/d

    OECDChinaNon-OECD excl. China

    Global oil demand, supply World oil demand growth, year-over-year change

    CONTENTSJuly 6, 2015 Volume 113.7

    OG&PE

    P1

    26

    SPECIAL REPORTMIDYEAR FORECAST

    SPECIAL REPORTETHYLENE REPORT

    COVERSuncor Energy Inc.s Montreal refnery,

    with a capacity of 137,000 b/d, produces

    gasoline, distillates, asphalts, heavy fuel oil,

    petrochemicals, solvents, and feedstock for

    lubricants. Oil & Gas Journals Midyear Fore-

    cast, starting on p. 26, provides updated

    global oil market data covering supply,

    demand, pricing, drilling, and economics.

    Photo from Suncor.

    REGULAR FEATURES

    NEWSLETTER 8

    LETTERS/CALENDAR 18

    JOURNALLY SPEAKING 22

    EDITORIAL 24

    SERVICES/SUPPLIERS 105

    STATISTICS 108

    MARKET CONNECTION 111

    ADVERTISERS INDEX 115

    EDITORS PERSPECTIVE/

    WATCHING GOVERNMENT 116

    Low-cost feed supports North American ethylene expansion plansRobert Brelsford

    74International survey of ethylene from steam crackers2015Leena Koottungal

    85

    Global oil glut continues despite increasing demandConglin Xu

    Laura Bell

    26

    GENERAL INTEREST

    Natural gas opposition has shifted to transportation, speakers sayNick Snow

    37

    Case for Keystone XL has grown stronger, TransCanada tells KerryNick Snow

    38

    Judges order delays BLMs implementation of fracing regsNick Snow

    40

    EIA: Argentina, China lead shale development outside North America40

    Gas faces more competition fromcoal, renewables, IEA official saysNick Snow

    41

    Senate Democrats outline broad energy goals to nations governorsNick Snow

    42

    US House committee leaders send letters to Plains, PHMSA about leakNick Snow

    43

    Group suggests principlesfor Alberta royalty review44

    Poor BIA management has hindered tribal energy development, GAO saysNick Snow

    45

    Oman lets contract for Sohar refinery unit revampRobert Brelsford

    46

    Precommissioning tests ongoing at Braskems Mexican petchem projectRobert Brelsford

    47

    150706OGJ_2 2 7/2/15 11:28 AM

  • MOTORMAXTM

    An Innovative Turnkey Solution to Motor ManagementSELs MOTORMAX is a centralized smart motor control

    and protection system designed for high-value,

    low-voltage processes.

    Delivered pretested, precongured, and ready to install, MOTORMAX saves hundreds of engineering hours.

    Use the centralized view of actionable data to manage and control your entire eet of motors from the safety

    of your desk.

    Whether you just have a few or hundreds of motors, MOTORMAX provides:

    Integrated arc-ash protection

    Reduced wiring

    Complete engineering tool set, including settings

    and diagnostic software

    The easiest way to simplify your motor management process while increasing

    equipment and personnel protection is with MOTORMAX.

    Find out more about this turnkey solution at selinc.com/7965-og7.

    HMI, oscillography, and Sequence of Events reports

    Advanced maintenance and protection functions

    Power quality monitoring

    150706OGJ_3 3 6/30/15 1:48 PM

  • Lubbock

    FIG. 1PERMIAN BASIN STRUCTURES

    NewMexico

    Texas

    Northwestshelf

    Delawarebasin

    Central basinplatform

    Midlandbasin

    Easternshelf

    Levelland

    Lamesa

    Snyder

    Sweetwater

    Midland

    Big Spring

    FIG. 1NORTH SEA COMPARISON: 1965-2010

    400

    500

    600

    700

    800

    900

    plo

    rati

    on w

    ells,

    no.

    1,800

    1,600

    1,400

    1,200

    1,000

    800 2D

    seis

    mic

    , 1

    ,00

    0 k

    m

    2D acquired (Norway)

    2D acquired (NL)

    Exploration wells drilled (Norway)

    Exploration wells drilled (NL)

    EXPLORATION & DEVELOPMENT

    Newfoundland, Labrador prepare for deepwater explorationTayvis Dunnahoe

    48

    Chinas Yanchi area, western Ordos basin derived from mixed source Zhou Shichao

    Wang Xingzhi

    Liu Xinshe

    Han Peng

    53

    DRILLING & PRODUCTION

    Earth model assists Permian asset valuationPatrick J. Curth

    James R. Courtier

    Gary B. Smallwood

    Rick Mauro

    Scot Evans

    64

    Innovation addresses US environmental regulations; more neededBennett Resnik

    Benjamin Nussdorf

    70

    TRANSPORTATION

    Lack of business drivers inhibits UK gas storage developmentAdrian Finn

    Zak Loftus

    100

    PROCESSING

    Low-cost feed supports North American ethylene expansion plansRobert Brelsford

    74

    International survey of ethylene from steam crackers2015Leena Koottungal

    85

    The price of oil and OPEChistory repeating?Manouchehr Takin

    Ramin Takin

    92

    Nelson-Farrar monthly cost indexesGary Farrar

    94

    NELSON-FARRAR QUARTERLY COSTIMATING: Indexes for selected equipment itemsGary Farrar

    98

    48

    64

    100

    T E C H N O L O G Y . . .

    150706OGJ_4 4 7/2/15 11:28 AM

  • Kenwood NX-5000 Series digital

    radios can tie into existing IP assets,

    expand your coverage, ofer GPS,

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    beating the most rigorous military

    specs for demanding, continuous

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    environments. Call today to set

    up a demo .

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    DIGITAL TECHNOLOGY TO DRIVE PERFORMANCE.MILITARY SPEC TOUGH TO GUARANTEE DURABILITY.

    gitaal

    asssets,

    GPS,

    llel

    taary

    ouus

    et

    150706OGJ_5 5 6/30/15 1:48 PM

  • OGJ

    Drilling & Formation Evaluation ____

    Well Construction ____

    Completion & Stimulation ____

    Production

    2015 Weatherford. All rights reserved.

    ITS ALL IN THE WAY

    WEREWIRED.

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    WIRELINE SERVICES

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    ULSED NEUTRON SEISMIC PROPELLA

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    ROFILE GEOPHYSICS GEOMECHANI

    PIPE RECOVERY PULSED NEUTRON

    PennWell, Tulsa offce1421 S. Sheridan Rd., Tulsa, OK 74112 PO Box 1260, Tulsa, OK 74101 Tel 918.835.3161 / Fax 918.832.9290Senior Art Director Michelle Gourd,

    michelleg@pennwell.comEditorial Graphic Designer Lena Banuet,

    lenab@pennwell.comStatistics Editor Laura Bell, laurab@ogjonline.comSenior Illustrator Mike ReederProduction Director Charlie ColeProduction Manager Shirley Gamboa

    Ad Services Manager Zac Nash

    WashingtonTel 703.533.1552Washington Editor Nick Snow, nicks@pennwell.com

    OGJ NewsPlease submit press releases via e-mail to:

    news@ogjonline.com

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    PennWell Corpor