Despite rising demand, efforts by the oil industry are pushing back the inevitable depletion of oil and gas resources. We are taking an active role in these initiatives, by looking for new oil and gas reserves and using innovative technologies to fully develop current resources.
New resources for Total
Increasing the resources available depends on:
- Discovering new fields.
- Winning new licenses.
- Bringing new discoveries on stream.
In 2006, conventional oil discoveries were made in the U.K. and Norwegian sectors of the North Sea (Alwyn and Gamma Main respectively) and in Cameroon (Dissoni), where we were also awarded a new exploration license (Bomana).
At December 31, 2006, proved and probable reserves totaled 20.5 billion barrels of oil equivalent(1), which is just over 20 years at current production rates, with a replacement rate of 127%.
Innovation opens up new prospects
Innovation allows us to optimize the potential of existing fields and to develop non-conventional resources.
Boosting reserves recovery from existing fields
Conventional technologies enable just 35% of oil and up to 80% of gas in place in reservoirs to be recovered. Technological innovations enhance recovery and mean that mature fields(2) —a category into which most of those identified and operated today fall—still enjoy substantial production potential. A variety of innovative technologies are used to maximize oil recovery, including:
- In situ combustion (also known as fire flooding).
- Injection of steam, miscible gas, carbon dioxide or polymers.
- Using seismic imaging to improve reservoir characterization.
Total has increased reserves and extended the life of the Alwyn field in the North Sea, Abu Al Bukhoosh in Abu Dhabi (United Arab Emirates) and operated fields in Argentina, Cameroon and Gabon.
To expand this approach, Total has introduced a Resources Development Plan to systemically identify potential measures and technologies for all fields to enhance recovery.
Developing extreme resources
Deepwater oil and gas fields, extra-heavy oil(3), very deep resources, sour natural gas and tight gas fields potentially hold significant energy reserves for the future. Using innovative technologies, we are tapping resources previously considered to be unproducible.
- Deepwater oil and gas in water depths of 500 to 3,300 meters: Total is a world-class operator in the deep offshore. We are continuing to broaden our base in West Africa, specifically Nigeria, the Congo and Angola. One of the largest deepwater fields in the world, Dalia, came on stream on in Angola in December 13, 2006. In Australia, we have acquired interests in six new exploration blocks. In addition, we have been awarded almost 30 new exploration blocks in the U.S. Gulf of Mexico.
- Extra-heavy crude oil: In Venezuela, we are a partner in the Sincor project, which produces 180,000 barrels of light, sweet synthetic crude oil per day. In Canada, we are gearing up to develop two oil sands projects in the Athabasca region: Surmont and Joslyn.
- Very deep reservoirs: Located at a depth of 4,000 meters or more, these reservoirs have very high pressures and temperatures that make their exploration, drilling and production especially complex. Since Elgin-Franklin was brought on stream in the North Sea in 2001, at a depth of 5,000 meters, Total has moved even further forward, for example with the 2006 development of the neighboring Glenelg field using a deviated well with a step-out, drilled to a depth of 5,600 meters.
- Sour gas and tight gas reservoirs: With our expensive experience in sour gas, which requires special treatment because of its high carbon dioxide and hydrogen sulfide content, we currently operate more than 60 sour gas fields worldwide. We are also active in tight gas projects in Algeria and Venezuela.
Continuing to consolidate across the gas chain
Total has significant positions in natural gas, which accounts for a growing share of our portfolio—currently around 40% of our oil and gas reserves and one-third of our production. In 2006, we produced 48 billion cubic meters of gas worldwide.
A growth and diversification strategy for LNG
Total is a driving force in the industry’s development, and we are consolidating our positions across the increasingly integrated LNG chain.
Upstream, we have interests in six of the world’s largest natural gas liquefaction facilities, which together account for 40% of global production capacity. We are also investing in the Snøhvit plant, under construction in Norway, and are the leader of the Yemen LNG development. In 2006, we finalized an equity participating interest agreement for Train(4) II of Qatargas II, the biggest gas liquefaction project in the world today.
In the midstream, to ensure outlets for our projects in major global markets, we are expanding our regasification capacity. We have interests in the Hazira terminal in India (26%), Altamira in Mexico (25%), Fos Cavaou in France (30%) and South Hook in the United Kingdom (8.35%), and have reserved capacity in the Sabine Pass terminal in the United States.
In LNG shipping, a major step forward was taken in 2006, when our first directly chartered LNG carrier, the Arctic Lady, was commissioned.
(1)Proved and probable reserves at end-2006 covered by exploration and production contracts, in fields where wells have been drilled, for which technical studies have demonstrated that development financial viability with a Brent price of $40/b; also includes share of Joslyn oil sands developed through open-pit mining.
(2)Whose production decline has begun or is about to.
(3)The gravity of extra-heavy oil is less than 10° on the American Petroleum Institute (API) scale.
(4)Liquefaction plants consist of “trains” where the processes to lower the gas’ temperature to approximately -160°C are carried out.
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