Technological Breakthroughs Advanced Upstream E&P's Evolution

Abstract

Throughout the history of the petroleum business, advancements in technology have transformed the upstream sector of the industry. Between the early 1900s and mid-1950s, the rotary rig, roller-cone bit, blowout preventer, electric well log, and walking beam pump were invented, just to name a few. All of these inventions, as well as others not cited above, were responsible for quantum leaps that led to huge changes in the way the industry evolved. Of the numerous technologies invented or developed since SPE came into its own 50 years ago, many have continued that evolution of technology, often changing the business by making it easier, faster, more efficient, and more cost-effective to find and produce hydrocarbons. Many of these breakthroughs and incremental changes resulted from either the direct or indirect work of members of SPE. Of all the inventions and technologies developed since the mid-1950s, industry veterans surveyed for this article unanimously agreed that the computer has had the most overall and lasting impact on the industry. The subsequent invention of the microprocessor and integrated circuit paved the way for further development of computer technology, thereby opening the door for additional advancements in communication technology, including both wired and wireless. Today, it seems almost impossible to imagine an energy industry (or any other industry, for that matter) without computers. During the past 50 years, they have evolved into the energy industry's workhorse, transforming every facet of the business, from seismic acquisition and interpretation through drilling simulation and drill-bit design to completion design and execution. Reservoir planning, management, and production depend on computers, as do offshore rig and platform design. Production facilities are controlled and managed from remote locations using computer software and communications hardware. Administratively, computers help manage every facet of energy companies' accounting, inventory, payroll, and related functions. Seemingly, computers are every where, performing tasks that get the job done faster, cheaper, and more efficiently. Early Computers Adopted Eagerly Engineers eagerly adopted the first computers as they saw the potential of devices that could crunch numbers quickly. One of the areas in which the computer enjoyed early influence was in reservoir simulation, a discipline that requires large volumes of mathematical calculations. Although nothing more than electromechanical calculating machines, early computers were much faster than the widely used mechanical calculators of the period. Those who used the first computers remember them as crude and rudimentary, but better than alternatives available at the time. "Our job (in reservoir simulation) was to model the flow of gas through the porous rock of a field," recalled Donald J. Peaceman, a retired ExxonMobil researcher and industry consultant. "We had nothing that you could call a computer, but we did have access to some accounting machines that the accounting department would let us use at night.