oil & gas - alfa lavalgas shale gas tight gas coalbed methane source: eia. u.s. energy...

11/18/2011

© Alfa Laval 1

Oil & Gas Oil & Gas

Sammy HulpiauSegment Manager

Energy & Environment

www.alfalaval.com

Oil production investments are Oil production investments are rapidly growingrapidly growing

� Moderate demandincrease

� High depletion rate

NGLs

Unconventional oil

Crude oil – fields yet tobe developed or found

Crude oil – currently producing fields

2000 2008 2020 2030

0

20

40

60

80

100

120

mb

/d

Source: EIA – Oil Production

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© Alfa Laval 2

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Gas production investments are Gas production investments are growing even fastergrowing even faster

� Cleanest fossil fuel

� 250 years of proven reserves

� Price

Source: OECD/EIA, 2011

1980

0

1 000

2 000

3 000

4 000

5 000

Mto

e

1990 2000 2010 2020 2030 2035

World primary energy demand by fuel in the GAS Scenario

Oil

Gas

Coal

Biomass

Nuclear

Other renewables

Hydro

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Our opportunity in oil & gasOur opportunity in oil & gas

Drilling Treatment Transportation

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© Alfa Laval 3

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Oil & Gas Oil & Gas drillingdrilling

� Drilling mud treatment: cleaning and cooling

� Process & potable water production

� Environment: wastewater and oily water treatment

© Alfa Laval Slide 5

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Oil & Gas drillingOil & Gas drillingMud treatmentMud treatment

© Alfa Laval

Drilling mud decanters Drilling mud coolers

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Drilling trendsDrilling trendsIncrease in offshore drillingIncrease in offshore drilling

� Offshore drilling expenditure grows with 6.6% per annum (2009-2015)

� More deep-sea drilling

Source: GBI Research

North America

South & Central America

Europe

Middle East & Africa

Asia Pacific

Global Offshore Drilling Expenditure, 2000-2015

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

30% 0-10 years old

8% 10-20 years old

31%Years old +30

31%20-30 years old

Source: IEA

Source: ODS Petrodata

Age profile of the semi-submersible fleet (mid-2011)

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Drilling trends Drilling trends Drilling for unconventional gasDrilling for unconventional gas

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Unconventional

gas

� shale gas

� tight gas

� coalbed methane

Source: EIA. U.S. Energy Information Administration

Conventionalnon-associated

gas

Sandstone

Seal

Gas-rich shale

Tight sandgas

Oil

Conventionalassociated

gas

Coalbed methane

Land surface

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UnconventionalUnconventional gasgasU.S. U.S. exampleexample


Source: EIA, Annual Energy Outlook 2011

U.S. Dry Gas ProductionU.S. dry gastrillion cubic feet per year

0

1995 2000 2005 2010 2015 2020 2025 2030 20351990

5

10

15

20

25

302009 ProjectionsHistory

7%

7%

1%

45%

8%

8%

22%

Net imports

Shale gas

Non-associated onshore

Non-associated offshore

Tight gas

Coalbed methaneAssociated with oil8%

8%

11%

14%

20%

9%

28%

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WhereWhere couldcould it it happenhappen in the future ?in the future ?

© Alfa Laval

Assessed basins with resource estimate

Assessed basins without resource

estimate

Countries within scope of report

Countries outside scope of report

Legend

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© Alfa Laval 6

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Oil & Gas treatmentOil & Gas treatment

� Removal of water and impurities


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WhatWhat doesdoes it it meanmean for Alfa Laval?for Alfa Laval?

© Alfa Laval

Many heat exchanger positions

Interchanger

Reboiler

Sweet gas

Sour gas

Stripping column

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Treatment trendsTreatment trendsHeavy crude oil Heavy crude oil

� Vast majority of remaining oil reserves is heavy crude oil

Source: Schlumberger

Billion bbls in Place 350+ 50+ 10+ <10

Total World Oil Resources: 9-13 Trillion bbl

15% Heavy

25% Extraheavy

30%Conventional

30%Oil sands and

bitumen

Source: IEA

11/18/2011

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Treatment trendsTreatment trendsFrom insight to actionsFrom insight to actions

Market input

� Canadian oil sands

� Heavy oil worldwide

� Offshore demands

Versus conventional separators

� less heat

� less chemicals

� less space and weight

Versus Direct Competitors

� less cost

� meet industry requirements

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Treatment trendsTreatment trendsEnvironmental legislationEnvironmental legislation


11/18/2011

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Environmental legislation Environmental legislation Tar sandsTar sands

� Ban on increasing the pollution by 2014

– 50% reduction of the pollution in 2011

– No increase of fine tails in the ponds by 2014

� Cleanup the legacy: 170 km2 MTF of polluted area

– It requires about 100 large decanters to run for 10 years to deal with the legacy


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Cleanup technologyCleanup technologyTar sand pondTar sand pond


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PipePipe line line transportationtransportationGas transportation by compressionGas transportation by compression

© Alfa Laval

1st stage compressor

2nd stage compressor

3rd stage compressor

Scru

bb

er

Condensate

30 bar

Gas cooler

Scru

bb

er

Gas cooler

85 bar

Scru

bb

er

Gas cooler

250 bar

Scru

bb

er

Condensate

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© Alfa Laval 11

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TransportationTransportationGas pipeline protection Gas pipeline protection

� MEG – Mono ethylene glycol treatment


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Pipeline protectionPipeline protectionTypical MEG regeneration Typical MEG regeneration processprocess

Recovered MEGfrom Centrifuge

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TransportationTransportationOilOil


� Inert gas systems added throughthe acquisition of Aalborg Industries

� Alfa Laval’straditional productportfolio

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Transportation trendsTransportation trendsFLNG FLNG –– Floating LNGFloating LNG

© Alfa Laval

0

1

2

3

4

5

6

7

8

Expenditure

($ b

illio

n)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Liquefaction

Import

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© Alfa Laval 13

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Typical oil & gas requirementsTypical oil & gas requirements


� Safety

� Explosion proof

� High pressure

� Compact and small footprint

� Reliable performance

� Global service infrastructure with offshore compliance

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ConclusionsConclusions


� Need for continued investments to maintain the balance between demand and supply

� High oil price gives opportunity to invest

� Alfa Laval has the products, the presenceand the know-how

oil & gas - alfa lavalgas shale gas tight gas coalbed methane source: eia. u.s. energy...

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