At Core Laboratories, it’s all about optimization, helping oil companies to extract as much as possible from their reservoirs
Written by Shetu Modi & Produced by Blair Dolson
The sheer size and scope of Core Laborato¬ries is certainly something to boast about. According to their Core Lab Capabilities online brochure, “Core Laboratories is the world’s largest reservoir fluids analysis company.” Not only does the company hold this title, but they also lead in core analysis worldwide. Put simply, the Core Lab’s analyses assist oil-producing companies internation¬ally in extracting as much oil and gas as possible.
On a global scale, the company employs 5000 people in 50 different countries, and among the company’s employees are graduate school recruits. There is a Core Laboratories office in every area in the world that is considered a major producer of oil.
These places include Saudi Arabia, Venezuela, Malaysia, the US and the Netherlands. The compa¬ny’s headquarters are located in Amsterdam, while the largest office is located in Houston, Texas. In Canada, the Core Laboratories office is in Calgary and is presided over by Steve Lee.
Maximum results
“Core Laboratories is the reservoir optimization company” is the motto emblazoned across the cover page of their online Capabilities brochure. The company offers products and services in three main departments: Reservoir Description, Reservoir Management and Production Enhancement. These services are offered to oil companies worldwide.
Specifically, it offers solutions to address what is known in the industry as “The Decline Curve.” As fields age, production rates of oil and natural gas decline – but oftentimes in conjunction with ever increasing volumes of water. If improperly produced, this increasing water production begins replacing the production of hydrocarbons – over time the field will begin producing nothing but water. Produced water has no economic value to the operator and must be dealt with in an environ¬mentally-friendly manner by the operator – all at a cost. Enter Core Laboratories.
“Core Laboratories exists to help you produce increasing amounts of oil and gas daily, while maxi¬mizing ultimate hydro-carbon recoveries from your fields,” says the company. “Core’s fundamental and basic measurements provide the foundation for determining how much oil and gas are present in a reservoir and the rates at which the hydrocarbons can be produced.”
In 2008, the company had revenues of $780 million, with most of that revenue - 56 per cent - coming from Reservoir Description. Reservoir Description involves determining how the behav¬iour of reservoir fluids changes from situation to situation, thus contributing to Core Lab’s primary focus of reservoir optimization.
The strategy is especially important as there is a decrease in demand. According to industry statistics, North American oil drill¬ing activities over the first quarter of 2009 dropped by 27 per cent compared to the same quarter in 2008. Revenue for this quarter, however, remained virtually the same, thanks to the use of new services offered by Core Lab’s Production Enhancement division.
There are a number of other divisions within the company, including Core Lab Instruments and Refinery Systems. The Instruments division is a supplier and manufacturer of laboratory tools for oil companies, and offers training in the use of these instruments as well. The Refinery Systems division specializes in octane analysis and also supplies equipment for this purpose.
All about ethics
Core Lab’s emphasis on ethics is illustrated by an outline of their Ethics Program, and their Code of Conduct document, both published on their website. They take cues from the U.S. Environmental Protection Agency to maintain high quality in the data they collect; practices include third party auditing and ethics train¬ing. The company’s Ethics Program includes a 24-hour helpline for reporting violations and ethics questions; a zero tolerance policy and a compliance officer who can be reached through the helpline.
As for the future, the company has three main growth strategies. The goals include “technol¬ogy development,” “leverag(ing the) international network,” and “acquir(ing) complementary tech¬nologies.” According to the presentation, the strategies have been instrumental in improving the company’s operations:
“Our operating margins have continued to expand as we have been able to develop new technologies – which we then strive to offer our clients throughout our existing international plat¬form,” they explain.