1. Oil Exploration & Extraction John Herbst CEM Advisory Panel April 27-28, 2010

2. Presentation Overview Technology Overview & Relevance CEM Research Activities Electromagnetic Vibrator Electric Valve Actuator Subsea Production Systems Offshore Power Generation/Distribution Hyperbaric Test Facility Upcoming Milestones

3. Technology Relevance Most of the “easy” oil and gas reserves have been identified Locating and exploiting future reservoirs will require drilling and production in more challenging environments “Tight” formations Deeper water/higher pressures Longer offsets CEM Research Electric valve actuation EM Vibro-seismic sources Subsea/Offshore production Power transmission/conversion Source: Aker Solutions Source: http://www.hydro.com/library/images/press_room/news/2003_11/Ormen_1800.jpg

4. Electromagnetic Vibrator New technology advancing the exploration for oil & gas Replaces existing vibro-seismic technology based on hydraulic actuators Uses EM forces to generate source waves Higher force, lower frequency and higher fidelity are potential improvements to existing technology

5. Ground Force Simulations Simulation model does not include the natural resonance of the base plate (~175 Hz). Model DOES include earth resonance (~39 Hz) Expected spectral performance of proof-of-concept system is good Figure shows 60 Kip force for full sweep Bottom figure shows waveform details at ~120 Hz PWM delivers good harmonic resolution Proof-of-concept system will produce 60 Kips on soils comparable to sand (or harder) Detailed high resolution models in Matlab were used to guide the development 5

6. EM Vibrator Conclusions Design, construction, and assembly of the electromagnetic vibrator is complete Integration on an existing truck is complete Initial testing has just begun and we plan to test the full functionality of this new oil and gas exploration technology

7. Electric Valve Actuation Wellhead valves have typically been hydraulically actuated with failsafe spring closure Operation at higher pressures requires larger springs Discharge of hydraulic fluid is prohibited in many areas Zero tolerance in North Sea CEM developed designs for all-electric valve actuators http://www.spe.org/jpt/2006/10/all-electric-subsea-production-system/

8. Subsea Production Systems Subsea production processes Multi-phase pumping Re-injection pumping Separation Gas compression Multi-megawatt power levels Technologies Barrier fluid filled motors Induction motors Permanent magnet motors Power distribution/control 1.8 MW Subsea Pumps http://www.intsok.no/docroot/downloads/Framo--PDF-7--Subsea-Pump-Proje.pdf

9. Integrated Compression Systems Direct drive compressor with integral high speed electric motor Single pressure housing Eliminates high ΔP seal Leveraging CEM experience with high speed, high power density electric machines Example of GE Integrated Compressor http://www.gepower.com/businesses/ge_oilandgas/en/literature/en/downloads/integrated_compressor_line.pdf

10. Subsea Separation/Boosting System

11. Flooded Motor Technology Evaluation CEM evaluation favors synchronous PM motor over induction motors for subsea applications Pros Power factor Efficiency Physical airgap Cons Power density

12. Motor Comparisons

13. Motor Comparisons

14. Offshore Power Generation & Distribution Systems Typical Floating Production, Storage and Offloading (FPSO) ship has ~100 MW power generation Pumps and compressors are major loads Leveraging ESRDC experience in modeling of ship power systems to explore novel offshore power system topologies

15. Statoil Troll A Platform Statoil’s Troll A Platform off coast of Norway ABB HVDC Light power distribution from shore ~85 MW of electrical power ~70 km offset

16. Offshore Power Transmission & Distribution Systems Eliminate FPSO or fixed platform by providing tie-back to shore Eliminates cost/risk of topside installation Efficient power generation on shore Requires subsea production system Motors, pumps, separators, compressors, valves, etc. Communications & control Power distribution & conversion

17. CEM Hyperbaric Test Facility ASME Code rated: 10,000 psi, 400°F Interior dimensions: 19” Ø x 58” L 14 penetrations Instrumentation Power supply Hydraulics

18. Upcoming Milestones Field testing of EM vibrator May – June 2010 Production prototype of EM vibrator Projected program start August 2010 Certification and commissioning of hyperbaric chamber Scheduled for May 2010

19. Summary CEM is conducting state-of-the-art research to support exploration and production of challenging oil and gas reserves Developing major new research programs in this area Research leverages CEM’s core technologies Power system modeling and simulation High power density electric machines Electric actuators Power generation, distribution, and conversion CEM is building a 10,000 psi hyperbaric test facility to support future research in this area