Glossary

Since the performance in global projects is about communication to co-ordinate global and local initiatives, it appeared imperative to create this glossary.

You will find words related to technology as well as commercial and contractual terms.

For each word you will find a definition as short and simple as possible and comments to make the best use of it.

With new technologies and new practices, new words or new understandings to come up at any time, feel free to comment. We expect to handle this section as a permanent  interactive learning session.

Many thanks in advance for your contribution

Umbilical : Definition: Umbilical refers in the oil and gas industry to the connections used offshore between the subsea equipment and platforms or floating production units and enabling the control from the surface. The umbilicals are made of steel or thermoplastic to be flexible and in the same time to resist to operating conditions. Comments Umbilicals provide control, power, communications and chemical services between a subsea production arrangement and a remote facility floating on surface. Umbilicals may be used for production control, chemical injection, subsea pumping and processing, gas lift and underground gas storage among others. Umbilicals are designed in respect with several factors including water depth, function, environmental conditions and temperature. Umbilicals may have large diameters for gas or chemical or water injections or for gas lift operations Umbilicals may also carry communications provided via signal cables, fiber optic cables and electrical power transmission for chemical injection lines, corrosion inhibition, and prevention of wax. With the development of the offshore exploration and production, especially of the deep offshore, the umbilicals are getting longer to reach several kilometers. In addition more and more equipment are installed on the seabed for safety requirement such as the blowout preventer (BOP) or to facilitate the oil and gas production with water injection pumps, gas booster compressors and all the valves requested around. All these equipment request more and more electrical power, monitoring and control system which contribute to load the umbilicals with new functions making them larger and larger. The combined increase of the umbilicals in length and diameter requests the development of new materials to reduce weight and improve the other performances in: - Flexibility - Higher pressure - Resistance to shocks, corrosion, weathering, low temperatures - Aging For all these reasons, the umbilicals use more steel than thermoplastic hose, high strength metallic materials and polymers that are resistant to fluid permeation. Solutions to include high speed optic fibers have also been developed. From electrical perspective, the umbilicals are now able to transport low voltage and high voltage current with higher insulation systems. The reliability of the subsea equipment is the must to guaranty the production and safety. The umbilicals are the critical components to make the subsea equipment running well and lasting.
Unrecoverable reserves : Definition: Unrecoverable reserves is usually defined as the proportion of resources, here oil and gas, that cannot be technically, economically and legally possible to extract. The unrecoverable reserves may also be called unproven reserves. Comments The unrecoverable reserves are the reserves left from the deduction of the recoverable reserves from the total resources called total Petroleum Initially-In-Place (PIIP). This Petroleum Initially-In-Place (PIIP) is an estimation resulting from exploration campaign and geological calculations. At the stage of the evaluation of the Petroleum Initially-In-Place (PIIP), no provisions are made because of the technology requested to extract it or its economical viability. The Petroleum Initially-In-Place (PIIP) is just reflecting that a certain quantity of hydrocarbons is laying in a given reservoir and under any state. Then the question comes if the state under which this hydrocarbon has been identified makes it recoverable or unrecoverable. The resources are declared recoverable reserves if they may be developed with reasonable certainty from a given date under current economic conditions, operating methods, and government regulations. Then with the oil and gas field moving on from exploration into development phase and production, these recoverable reserves will be categorized in developed and undeveloped. In some cases a share of the probable reserves may also be considered as recoverable reserves if once the presence of these probable reserves is confirmed by further exploration, it is admitted with high probability that the state of these probable reserves is similar to the already proven reserves and therefore recoverable. Possible reserves cannot be considered as recoverable reserves due to the accumulation of uncertainty about the nature of these reserves at a given date. By definition the reserve have been categorized between: - 1P reserves = proven reserves (both proved developed reserves + proved undeveloped reserves) - 2P reserves = 1P (proven reserves) + probable reserves, hence proved AND probable. - 3P reserves = the sum of 2P (proven reserves + probable reserves) + possible reserves, all 3Ps proven AND probable AND possible. These definitions are well-known and recognized for conventional oil and gas, but the development of unconventional resources (Extra heavy crude oil, Tight oil, Tight gas, shale gas, Oil sand, etc...) requested more accurate definitions since the estimation of recoverable reserves is attached to the notion of certainty or probability of recovery according to number of provisions. Canada being the country with the largest unconventional resources went through the exercise to go deeper in the details of the provisions to be made for the calculation of recoverable resources and published in 2002 in the Canadian Oil and Gas Evaluation Handbook (COGEH). The COGEH itself can be obtained from the Petroleum Society of the Canadian Institute of Mining, Metallurgy and Petroleum, Calgary This document proposes the table below to classify the resources between recoverable reserves and unrecoverable according to the degree of uncertainty of their related technical and commercial provisions. Then the legal contingencies must also be considered as having a major impact on the unconventional resources to declare them recoverable or unrecoverable as for example with shale gas, allowed in USA and banned in most of European countries.
Upstream : Definition: Upstream refers to the flow of oil or gas coming up from the reservoir to the surface. By extension Upstream has been adopted by the Oil & Gas industry to nominate all activities to pump up the oil and gas. It starts from the exploration to find new reserves onshore or offshore, covers all drilling operations and includes all the surface treatments to make the oil and gas transportable or transformable. For these reasons, Upstream is also called Exploration & Production or E&P. Comment: Because of the ever bigger challenges to find new reserves of oil and gas, such as the extreme conditions of the new fields (Arctic, Ultra deep water, desert, etc…), the nature of the oil or gas calling for more treatment, the Upstream activities require more and more technologies and resources over the years. Since 2010, the total amount per year of capital expenditures in Upstream from all the operating companies exceeds $500 billion. From that amount, roughly $360 billion, according to the International Energy Agency, are only to maintain or replace the production from the ageing fields. This massive need of capital expenditures in Upstream has pushed most of the IOCs to spin off all other transportation or transformation assets.
Usine du Futur : In France the “Future of Manufacturing” has been translated into “Usine du Futur”. This translation is not correct and misleading, especially in the French social sensitive environment. In the French context “Usine du Futur” is immediately perceived as “Unmanned factory”, thus referring to a “jobless industry”. For example “Industrie du Futur” could have been less challenging to explain and promote the “Future of Manufacturing” concepts in the French culture. Anyway the car industry in partnership with its best universities and engineers schools is working on the “Future of Manufacturing” concepts for years, far before the “Usine du Futur” initiative was introduced. The choice of Le Bourget Airport Exhibitions Center to introduce the “Usine du Futur” reflects how this initiative is now driven by the aerospace industry, one of the strongest economical and innovative sector in France. The “Usine du Futur” program belongs to the 34 plans presented by the French Government in September 2013 to restore the French Industry. Since its introduction in Le Bourget, the “Usine du Futur” initiative is promoted in France region by region on the next years