Oil and gas companies will spend about US$723-billion on exploration and production (E&P) in 2014, an increase of 6.1% from 2013 according to Barclays Bank.
These rising costs, combined with the ongoing pressure for oil and gas companies to deliver higher returns for shareholders, will spark the adoption of newer technologies. While they are going to be spending more, every dollar will need to earn a return as hydrocarbons become harder to find and harder still to produce. Good news, Acceleware has some answers.
At Acceleware we are beginning to see the second tier of E&P companies embrace more advanced seismic imaging and modeling software. They’re doing this to have access to better images and more accurate information before making critical drilling decisions. Continued increases in acquisition costs and investment in deepwater drilling programs provide support for the increased adoption of RTM in the industry. Wood Mackenzie has forecast the volume of deepwater wells to more than double in the coming 10 years with close to 10% annual growth in this category alone. Any E&P company operating in complex geology knows that money invested in accurate seismic imaging will result in reduced drilling costs. With AxRTM, Acceleware’s reverse time migration software, accurate seismic imaging now has a favourable return on investment, whether they take on the imaging themselves (see Ecopetrol S.A. and Woodside Petroleum Ltd. below) or rely on contractors such as Dolphin Geophysical.
Our sales of AxRTM reflect this trend with Ecopetrol, Colombia’s primary petroleum company, selecting the application to help develop a sophisticated internal seismic imaging team, allowing the company to better manage and enhance the results they receive from seismic contractors.
Australia's largest independent oil and gas company, Woodside Petroleum, is also following suit, adopting AxWave, Acceleware’s high performance seismic modeling software, to simulate data acquisition in complex geological areas.
Earlier this month we signed a reseller agreement with Open Geophysical Inc., Houston based seismic software company, to integrate and resell AxRTM within their software. Under the agreement Dolphin Geophysical ASA, a marine acquisition company, will be the initial customer. The Norwegian based company has identified reverse time migration as a crucial component for their processing and imaging services.
On the RF Heating side of the business we are continuing to see a growing demand for this emerging technology as the major E&P companies invest in R&D to combat rising production costs and unlock stranded resources. Our work to commercialize our expertise in this field is continuing as we get ready to launch AxRF.Res, a new software application that helps heavy oil producers model and manage the use of RF Heating in their reservoirs. Currently in beta release, we are working with several initial customers who will license the software and we have had positive feedback from the leading reservoir simulation software provider, whose software is integrated with AxRF.Res. This year we will be increasingly active in industry groups and events for the heavy oil and oil sands sectors as we build awareness and adoption of RF Heating.
Looking forward the next couple of months will be a busy few for the team as we attend, sponsor and present at a number of key industry events including NVIDIAs GPU Technology Conference (GTC) and the Oil and Gas High Performance Computing Workshop held in Houston at Rice University.
Held in San Jose, March 17-27, GTC is the world’s largest GPU developer’s conference. The event showcases the latest GPU advancements and applications and offers face-to-face interaction with industry experts. It is a key event for promoting Acceleware’s CUDA training and consulting services. As per last year, Acceleware will be teaching a number of programmer tutorials.
Relocated to new venue with a larger capacity, the Oil and Gas High Performance Computing Workshop is becoming a standard fixture in our event calendar. Acceleware’s professional services and seismic software will have an increased presence at the workshop this year with an exhibit and a technology pitch.
Well it’s back to work for me. Stayed tuned for the next update.