Appunti 4.2 Exploration.docx

Contents: - GLOBAL ENERGY TREND OVERVIEW - How Exploration contributes to energy transition - EXPLORATION IN O&G BUSINESS - Pre-drill phases - Risk assessment and economics - Post-drill and development project opportunity maturation   ---------- ----------------...

Contents: - GLOBAL ENERGY TREND OVERVIEW - How Exploration contributes to energy transition - EXPLORATION IN O&G BUSINESS - Pre-drill phases - Risk assessment and economics - Post-drill and development project opportunity maturation   ---------- -------------------------------------------------- \[5-13\] How exploration contributes to energy transition ---------- -------------------------------------------------- Energy is required for every single daily activity. Furthermore, world is growing so energy requirements are increasing. \[5\]   Oil and gas contributes to more than 50% of the energy mix of the world @ 2022. \[6\]   **Energy transition** is a fundamental to transition away from fossil and adopt renewable sources. Anyway energy transition **needs time** and needs to be **sustainable in a scenario of growing people**. \[7\]   Without exploration it is difficult to sustain a scenario in which oil and gas are predominant, even though production is declining and will further decline in the next 10 years (in particular concerning oil). It needs time to replace 80% of fossil fuels (including coal), so exploration is still important. \[8\]   **Resilient exploration** will deliver advantaged resources that can be on **production within five years** from the discovery (*short track time*), have a **low break even price** (*economically sustainable*) and be producible with **net zero upstream emission** (*low carbon risk*) Hydrocarbon production will shrink in the next years, **gas will be the bridge fuel** and **carbon capture utilization and storage will be a key factor.** \[9-10\]   ----------- --------------------------------------------- \[13-21\] Exploration objectives and pre-drill phases ----------- --------------------------------------------- **Exploration** is searching for undrilled and undiscovered hydrocarbon resources in the ground through geological and geophysical studies. Fundamental parameters are: - **Original hydrocarbon in place** (MBOE, Mega Barrel of Oil Equivalent) -\> volume - **POS %** (possibility to find HC) -\> probability of success **Exploration Contingent Resources** are discovered volumes not yet under production. Exploration wells (**New Field Wildcat NFW** or **Appraisal)** have to be drilled to declare our discovery After exploration dedicated engineering studies need to be developed (**development project**). The hydrocarbon amount that can be produced is called **Reserve** (MBOE) the **recovery factor** (%) is the ratio between them reserve and original hydrocarbon in place. The typical gas recovery factor is between 60-85%, while for oil it is lower between 10-45%. \[14\]   The typical workflow consists in **three plus one phases**: see *240617 (m.1) - Upstream project development (4.4)* \[16\] - **Exploration.** Exploration can be divided in three phases: - **New venture and contract** (\