Unconventional oil and natural gas play a key role in the clean energy future of our nations. Oil field equipment like horizontal drilling and hydraulic fracturing technologies have allowed better access to oil or natural gas from shale formations than ever before. We work with states and other key stakeholders to ensure that the economic prosperity of unconventional oil and gas extraction does not come at the expense of public health and the environment.
As part of the Natural Gas STAR program, the EPA is working with companies to identify technologies, practices, and costs to reduce methane emissions from the oil and natural gas sector in the United States. We are also developing revised UIC Class II, which allows specific guidelines for oil, gas, and hydraulic fracturing activities and oil field equipment, as well as the use of diesel fuel. Our compliance assistance web portal for owners and operators of oil and/or gas operations provides accessible information to help companies comply with federal and state environmental regulations.
Supporting the growth of deep decarbonization technologies for oil and gas companies at the industrial level, including carbon capture, use and storage (CCUS), methane efficiency, and zero-emission production of hydrogen. How oil and gas companies can respond by looking at how they do business and confronting and rethinking business models in a world of decarbonization. The role of oil and gas companies in the Global Energy Forum Robert R.J. Johnston, Reed Blakemore, Randolph Bell, Energy Transition for Oil and Gas Group windmills, solar panels, coastal power, and oil platforms.
Rapid advances in new mobile technologies in the oil and gas industry have helped companies improve processes, increase productivity, increase efficiency and increase worker productivity and safety. Despite this progress, oil and gas companies are caught between the pressures of a shrinking workforce and the growing demand for oil as well as oil field equipment. Years of high and rising oil prices have led to long-term oil prices exceeding $100 per barrel. New extraction technologies and open new sources of supply suggest a new equilibrium of $20 to $30 or less per barrel. The new normal of low oil prices not only expose inefficient oil and gas companies but also urges more efficient ways to maintain their peak and margins.
A digital oilfield integrates technology, information, people and processes to maximize the performance and value of assets throughout the life cycle of oil and gas production. Intelligent oil field equipment and technology offer excellent opportunities to increase efficiency in oil and gas fields by saving the time, energy, and technology employed by the workers concerned, as the technology can be applied in any sector of the economy. The smart field concept has proven to be a promising area and has found a variety of applications in oil and gas fields around the world.
Digital oilfields are a series of interactive and complementary technologies that enable companies to collect and analyze data on-site. Geologists and geophysicists can use rugged laptops to create real-time 3D models of where underground oil and gas deposits can be found. Digital systems and records help limit security incidents by giving employees real-time access to data. This helps oil and gas companies create a safe work environment for employees and protect valuable oil field equipment and property.
This means putting the oil and gas industry in a better position to take advantage of the value of mobility to increase efficiency and reduce costs. With demand for oil rising and prices reaching record highs, oil companies have reason to invest in oil fields that once seemed too expensive and difficult to access. Indeed, in 2013, a major oil company planned to spend $100 million on its digital oilfield program in a single geographic area, before extending elements of the program to four more regions.
The development of new fields has led to economic progress in areas that were once abandoned by the oil and gas industry. As the oil industry has expanded into other parts of the state, so have oil field equipment and service companies. Hundreds of privately held companies have sprung up across southern Louisiana to provide basic support services to oil and gas companies.
In 1926, the Pure Oil Company discovered the Sweetlake oil field at Cameron Parish, the first commercial production field on the Gulf Coast. For the rest of the century, South Louisiana became the epicenter of the development of new oil and natural gas reserves in offshore waters. New companies in the oilfield services sector, which employ thousands of skilled workers, included those that built and operated barges and boats to supply the industry with tools and oil field equipment, and those providing catering services and warehouses for the large number of oil and gas companies operating throughout the state.
For example, a century ago, energy producers had not figured out how to tap the enormous amounts of oil and natural gas found in shale and other narrow rock formations. Global energy sources are now needed to meet rising demand, and the 2040s will mark a transition to cleaner fuels like natural gas.
In a dynamic global industry such as oil and gas, you need to manage costs to maximize value from current assets and availability. Oil and gas production, supply, midstream, and refineries consume a significant amount of energy in the form of on-site generation and use of oil field equipment, fuels, diesel, and natural gas. The costs associated with these activities are among the highest for LOE operators.
Since the start of the US shale boom, pipeline companies have seen their business model shift from a simple business model of transporting limited quantities of liquefied natural gas from a fixed supply and demand center to a more complex dynamic model that transports variable volumes and product qualities to multiple locations and new end-user markets. Oil and gas, like many other industries, continue to struggle with paper-based manual processes that inhibit efficiency and impede good collaboration between companies. With huge investment in discovery and production, and with oil and gas platforms operating around the clock, unplanned stoppages are unacceptable.