Thursday, October 22, 1998

Laser technology may revolutionize oil industry

By CHRIS NEWTON

Associated Press

ODESSA - Beneath the dark cloud of falling oil prices and rumors of imminent industry layoffs, visitors at an oil-industry exposition examined such products as neck-shading hats for roughnecks and oil-drilling lasers.

Industry workers and small company owners attending the Permian Basin International Oil Show had their moods dampened Tuesday by storms moving through the region and plummeting oil prices that are now more than seven dollars a barrel less than last October.

"It's a tough time," said Chris Whigham, an engineer for Pioneer Natural Resources. "We don't have as much cash flow and you have to drill more oil just to make the well economic. People are starting to talk about layoffs."

Exhibitors said the dropping oil prices have effected sales this year.

"Our sales in the oilfield are off significantly in the Permian Basin," said Gil Greene, a representative for oil-pipe maker Victaulic.

"Not as many wells are being drilled right now."

But industry workers still seemed interested in investigating new technologies.

Especially displays that seemed to suggest the sun may soon set on the days of the hardworking, callous-laden, roughneck.

The talk of the show was a research project by the Gas Research Institute that explores the possibility of using lasers to blast through rock, instead of the traditional oil derrick.

"Laser technology has the potential to revolutionize oil and gas drilling in the 21st century," said Richard Parker, GRI technology manager. "A breakthrough with laser drilling could generate the kind of radical change that occurred at the turn of the century, when rotary drilling replaced cable tools."

The technology was inspired by the STAR WARS defense initiative, a government project aimed at using lasers to strike down incoming nuclear missile attacks.

Among the benefits of drilling with lasers: neat holes in which the rock on either side appears nearly untouched and a drilling time of only a few hours.

The process would take less manpower than drilling and require highly skilled operators.

"This would change everything," said Ed Thompson, owner of Thompson Drilling just outside of Midland. "No doubt about it, this is what we'll be doing in ten years. We're gearing up for change."

The laser technology could become reality long before skeptics might think.

Industry analysts say oil companies will soon begin to realize a shortage of oil field workers as the U.S. oil reserve is depleted.

More oil wells will be needed for companies to recover the same amount of oil, forcing companies to utilize new technologies, said industry analyst Victor Trennan.

GRI is working with MIT, Phillips Petroleum, the U.S. Army among others on the project.

Parker said that GRI is aiming to bring the laser technology to oil workers for a reasonable price.

"We're not researching this so that no one will be able to use it," Parker said. "We predict that this will be feasible for the small oil company owner within 20 years...maybe much sooner."

Other items that attracted attention were a laptop computer that makers boasted would work even if dumped into a pool of mud and new, lightweight plastic pipeline material.

Jay Alvey, executive director of the three-day event, said nearly 800 vendors, some from China, Canada and Mexico, were showing off new equipment geared toward the small oil company owner.

"We were just getting more international in scope and thought this was the right move to make," Alvey said.