In-depth analysis: The "three barrels of oil" upstream races for smoke to rise again

　　This year, with the continuous increase in upstream investment, the period of oil and gas exploration and development has probably fallen.

　　When the fire dragon spewed out again from the incineration arm in the offshore drilling field, Liu Baosheng looked very calm. In the previous year, as the manager of CNOOC Bozhong's 19-6 exploration well project, he had already seen this scene quite often.

　　Two days ago, the Bozhong 19-6 gas field officially entered into a 100 billion cubic large gas field.

　　CNOOC revealed at the time that the proven geological reserves of natural gas in the gas field exceeded 100 billion cubic meters, and the proven geological reserves of condensate oil exceeded 100 million cubic meters, becoming a very natural gas field discovered in the history of the Bohai Bay Basin.

　　The excavation of the 100 billion cubic meters of large-scale gas fields depends on CNOOC's exorbitant capital expenditure in the field of exploration and development in the previous year. In 2018, CNOOC's estimated capital expenditures reached 70-80 billion yuan, an increase of 40% -60% year-on-year.

　　Sinopec is not resigned. The company's decision in the survey and development area last year reached 48.5 billion yuan, a year-on-year increase of 55%. The investment of kerosene in another giant was as high as 167.6 billion yuan.

　　With the "three barrels of oil" totaling nearly 300 billion yuan in capital expenditures, oil and gas fields located in central and western China and the eastern coast of China have been drilled, and large oil and gas fields have been discovered one after another.

　　Just over two months ago, an oil well test in the Kuqa Tarim Oilfield in Kuqa, Xinjiang, won a well test. This oil and gas well named "Mid Autumn Festival" will have a 100 billion cubic-scale condensate gas reservoir.

　　After a lapse of many years, the "three barrels of oil" revived in the upstream game. This year, with the continuous increase in upstream investment, the period of oil and gas exploration and development has probably fallen.

　　Stir the Bohai Sea

　　Regarding Bozhong's 19-6 exploration wells, Liu Baosheng's pleasure quickly probably stayed more on March 2, 2018. On this day, he and he worked together to hold an attempt on Bozhong 19-6-4.

　　Such attempts are critical to the completion of mass production in the coming day.

　　If the attempt is not smooth, CNOOC will not be able to accurately obtain the material release output, and even if it has a large reserve, it will not be able to open up a large area.

　　Just try to be smooth. At 5 o'clock in the country, the wellhead saw gas, divided the discriminator into the intake air and burned, and the incineration arm spewed out a fire dragon. This attempt succeeded in achieving high yields, thus setting a very high record for the Bohai Oilfield's attempted production in the buried hill reservoirs of the Paleozoic.

　　Two months after this attempt, Liu Baosheng, who was still pursuing a PhD at the School of Kerosene Engineering of China Kerosene University (Beijing), was the first author and worked with the rest to publish an article entitled "Unconventional Wellbore Prevention of Prospecting Wells in the Bohai Oilfield" The paper on oblique combination technique.

　　The "Bozhong 19-6" gas field was first excavated in December this year. It is located in the southwestern part of the Bozhong depression in the central and southern Bohai Sea, with a balanced water depth of 22 meters. At that time, the gas field reserves were thought to be as high as 100 billion cubic meters.

　　However, the geological layout of the Bohai Basin is complicated, and it has been described by the weather as "like a broken plate and stepped on a few more feet."

　　"Coupled with the presence of toxic and unhelpful gases such as high temperature, high pressure, hydrogen sulfide, and carbon dioxide in Blocks 19-6 of Bozhong, all the trial processes and trial strings are matched with each other." Liu Baosheng said.

　　According to Liu Baosheng, the Bozhong 19-6 project has completed 11 exploration wells within the surrounding 600 square kilometers, and each well has encountered a gas stratum that spans 100 meters.

　　Based on this attempt, natural gas's overall proven reserves have exceeded 100 billion cubic meters, which can be used by a million residents for hundreds of years.

　　Bozhong 19-6 is only one of the numerous oil and gas wells in Bohai Oilfield. China's second largest crude oil manufacturing base is located in the main area of ​​Beijing, Tianjin and Hebei. Nearly 40% of China's crude oil is produced in the Bohai Bay Basin every year.

　　Despite the rich crude oil reserves in the Bohai Bay Basin, in the past 50 years, large natural gas fields have never been discovered. This is due to the fact that natural gas resources are mostly located on the ocean floor spanning a depth of 3500 meters.

　　The development of oil and gas resources in the Bohai Sea dates back to 1967.

　　This year, China ’s first offshore exploration well, “Haiyi Well”, produced oil, which opened the prelude to the history of Bohai Oilfield manufacturing, marking that Bohai Oilfield officially entered the stage of contemporary industrial manufacturing.

　　But by 1975, the Bohai Oilfield produced only 80,000 cubic meters. In the next 35 years, with the advancement of offshore drilling technology, the development of the oilfield has entered a rapid lane.

　　In 2004, the Bohai Oilfield produced 10 million tons, and six years later it broke through 30 million tons. In the next nine years, China's inland sea will become the main oil and gas producing area of ​​CNOOC.

　　In China's natural gas manufacturing region layout, natural gas production in the west accounts for more than 80%. However, the natural gas expenditure in the central and eastern regions accounts for 70%.

　　In relation to the western oil and gas wells, the location of the Bozhong 19-6 gas field stands out.

　　The Bozhong Sea area is only 100 kilometers away from Beijing, Tianjin and Hebei. After opening, it can simply use the existing natural gas pipelines to enter the environment and enhance the natural gas supply in North China.

　　Upstream competition

　　In the upstream territory of CNOOC, the Bohai Oilfield holds insignificant positions. Yesterday, the third-largest kerosene giant in China proposed the "30-million-ton stable production for another 10 years" target in the Bohai Oilfield.

　　The completion of this indicator rests on the increased upstream investment.

　　At the end of January this year, CNOOC issued the "planning and decision-making this year", and its estimated total cost of capital payment was 70-80 billion yuan. Among them, the survey, development and manufacturing of localized payment accounted for about 20%, 59% and 19%.

　　Compared with yesterday ’s “Focus on Foreign Strategy Focus Areas”, this year, CNOOC will focus more on “succession in increasing domestic surveys” in strategic requests.

　　Based on the decision, this year CNOOC's investment in domestic exploration is estimated to be 12 billion yuan, accounting for 76%, and it is decided to drill 173 exploration wells. In addition, the company also decided to complete 73 unconventional exploration wells, double the number from 2018.

　　Another kerosene giant, kerosene, has also had a good harvest in upstream exploration and development.

　　More than two months ago, the well test of Well Zhongqi 1 in the Tarim Oilfield of China Kerosene successfully won a high-yield industrial gas flow, equivalent to 21.4 cubic meters of daily condensate and 330,000 cubic meters of natural gas per day.

　　This means that another 100 billion cubic gas condensate reservoirs have been discovered.

　　"Mid-Autumn Festival" does not refer to festivals, but rather the abbreviation of "Mid-Autumn Festival Organizing Belt". According to the performance of China Kerosene, the survey area of ​​this organization zone is 5,200 square kilometers, the natural gas resources are 1.43 trillion cubic meters, and the kerosene resources are 283 million tons.

　　In addition to the Mid-Autumn Well 1, the China Kerosene Xinjiang Oilfield also excavated the Mahu 1 billion-ton conglomerate oil field in this year. The tertiary kerosene geological reserves reached 1.24 billion tons, of which the proven reserves were 520 million tons. It seems that at that time, Universal had already discovered very large conglomerate fields.

　　Large oil and gas fields have been excavated one after another, making the production indicators of Xinjiang Oilfield in Xinjiang better than expected.

　　In 2018, Xinjiang Oilfield produced 11.47 million tons of crude oil, exceeding 100,000 tons of decision-making; it produced 2.91 billion cubic meters of natural gas, and exceeded 210 million cubic meters of decision-making.

　　"This year (2018) is a" big year "for surveys. It is a highlight that hazard surveys have been broken in multiple basins and at multiple points." Zhao Wenzhi, academician of the Chinese Academy of Engineering and director of the China Kerosene Exploration and Research Institute, revealed.

　　In the past two years, China ’s kerosene investment in the field of exploration and manufacturing has increased.

　　This year, the company paid 162 billion yuan for survey and manufacturing, a year-on-year increase of 24%. Yesterday, on this basis, China Kerosene's decision-making survey and manufacturing payment was 167.6 billion yuan, a year-on-year increase of 3.5%.

　　Entering this year, China's upstream measures for kerosene are still accelerating.

　　According to the information disclosed by China Kerosene, in 2018, the company's drilling footage is estimated to increase by 15% to 20% this year.

　　Taking the western drilling company owned by China Kerosene as an example, in January this year, the drilling drilling capacity of the western drilling company increased by 32.6% year-on-year. On February 11, the company completed a total of 55 wells this year, with a footage of 207,700 meters, an increase of 104,300 meters.

　　Another piece of data is better able to analyze the upstream aspirations of China Kerosene.

　　In 2018, the oil service company's oil service company, PetroChina Oil Service Co., Ltd., has a flexible utilization rate of 79%, and this year's target is 85%.

　　In addition, China Kerosene also clearly mentioned that this year, the number of wells will reach 2,000, and the number of wells opened for unconventional resources such as shale gas and tight oil is expected to double.

　　When intermediate kerosene was drilling everywhere in the Tarim Basin, on February 25, in the unified basin, a well named Shunbei Eagle 1 in the Shunbei oil and gas field owned by Sinopec Northwest Kerosene once again set a very deep record for drilling onshore in Asia.

　　The Shunbei oil and gas field was excavated by Sinopec Northwest Oilfield Company in 2016. So far, nearly 30 ultra-deep wells have been drilled in the Shunbei Oil and Gas Field, with an annual production capacity of 700,000 tons successfully and an oil production of over 520,000 tons in 2018.

　　Yesterday, Sinopec, which mainly deals with middle and lower classes, also stepped up its upstream investigation and development efforts. The company paid 48.5 billion yuan in decision-making survey and manufacturing yesterday, a year-on-year increase of 55%, and will focus on the development of shale gas in the southwest.

　　In fact, China's upstream oil and gas exploration and development investment has been blocked for many years. Since 2013, the connection of foreign oil prices has plummeted, global oil and gas producers' upstream investment has plummeted, and Chinese oil companies have made no exception.

　　During the same period, China Kerosene failed in 2013, and a large number of high-level bosses in charge of upstream survey and development areas followed suit. In the future, the anti-corruption storm will cover all kerosene systems, and oil and gas exploration will be hampered.

　　Starting from 2014, the three-barrel oil's capital expenditure on exploration and development has declined for three consecutive years.

　　However, with the rise of foreign oil prices from this year first, the global oil service industry first rebounded, and the “three barrels of oil” also bottomed out and rebounded by about 20% year-on-year.

　　For the "three barrels of oil", a race entangled in upstream oil and gas transactions has begun again.

——Author：ebico