Improving the reserves evaluation system, introducing innovations, and modernizing sector-specific legislation are priorities in the hydrocarbon extraction industry

Specialists from the Geological Investment Group participated in the VIII International Sectoral Forum “Extraction. Well Overhaul. Intensification”, held in Poltava.

The industry is evolving, but to optimize extraction and increase investments, it requires a series of decisions. Here are some key points from this year’s international forum dedicated to hydrocarbon extraction:

• Companies want to understand how much to invest in a project and how quickly it can pay off. However, currently in Ukraine, investors do not have open information about the actual reserves of gas that correspond to market realities. Leading global companies assess hydrocarbon reserves using the PRMS system, which considers both technical and commercial factors affecting project timelines and costs. Ukraine is now working on legislative initiatives to recognize the PRMS system.
• Priorities for The State Service of Geology and Mineral Resources of Ukraine include simplifying access to geological information through the launch of an online map with a list of minerals, wells, and issued special permits (the number of oil and gas wells is expected to increase by at least 2000 by the end of the year); declassifying reserves of certain minerals; guaranteeing government support for investments over 20 million euros and job creation by the investing company.
• Air drilling and horizontal well drilling will help elevate gas extraction to a new level. Horizontal drilling can increase extraction efficiency by 10-30 times. The advantage of air drilling technology lies in increased drilling speed, reduced costs, and ecological risks. This method requires new equipment, expertise, and regulatory changes.
• Unfortunately, there is still no clear document regulating and precisely describing the interaction of simultaneous works on wells, such as drilling, operation, and overhaul of wells by different contracting organizations. It is impractical for extraction companies to stop operating one well while constructing the next during deep well drilling.
• Digital solutions and the application of new technologies for staff training will help practice high-risk tasks not in real but in simulated situations. For example, drilling simulators replicate an exact copy of the well and interpret the process and various probable problems in real-time, such as malfunctioning drilling pumps, helping to avoid them during fieldwork.
• Ukraine can ensure self-sufficiency in gas at an affordable price in the short term if it applies the technology of mapping industrial hydrocarbon reservoirs. This globally known technology involves integrating all data into a computer-generated 3D model. Mapping will help determine the spatial position of large hydrocarbon reservoirs and minimize risk when establishing new wells.

Approximately 200 representatives from leading oil and gas extraction, drilling, and service companies, scientists, and representatives of foreign higher education institutions, including Azerbaijan and Poland, participated in the forum held at the National University “Yuri Kondratyuk Poltava Polytechnic“.