- Crude oil
- Hydrocarbon exploration
- Natural gas
Saturday, October 3, 2009
Oil and gas
Oil and gas is a collective term that refers to liquid and gas hydrocarbons extracted from the subsurface. The term oil and gas may refer to:
Future of petroleum production
The future of petroleum as a fuel remains somewhat controversial. USA Today news reported in 2004 that there were 40 years of petroleum left in the ground. Some argue that because the total amount of petroleum is finite, the dire predictions of the 1970s have merely been postponed. Others claim that technology will continue to allow for the production of cheap hydrocarbons and that the earth has vast sources of unconventional petroleum reserves in the form of tar sands, bitumen fields and oil shale that will allow for petroleum use to continue in the future. They argue that both the Canadian tar sands and United States oil shale deposits represent potential reserves with just as much oil as current liquid petroleum deposits.
Price of petroleum
After the collapse of the OPEC-administered pricing system in 1985, and a short lived experiment with netback pricing, oil-exporting countries adopted a market-linked pricing mechanism.[25] First adopted by PEMEX in 1986, market-linked pricing received wide acceptance and by 1988 became and still is the main method for pricing crude oil in international trade.[25] The current reference, or pricing markers, are Brent, WTI .
Petroleum industry
The petroleum industry is involved in the global processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone [20], though by 2007 this had dropped to 21% of world oil consumed.
In the US, in the states of Arizona, California, Hawaii, Nevada, Oregon and Washington, the Western States Petroleum Association (WSPA) is responsible for producing, distributing, refining, transporting and marketing petroleum. This non-profit trade association was founded in 1907, and is the oldest petroleum trade association in the United States.
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone [20], though by 2007 this had dropped to 21% of world oil consumed.
In the US, in the states of Arizona, California, Hawaii, Nevada, Oregon and Washington, the Western States Petroleum Association (WSPA) is responsible for producing, distributing, refining, transporting and marketing petroleum. This non-profit trade association was founded in 1907, and is the oldest petroleum trade association in the United States.
Oil reserves
Oil reserves are the estimated quantities of crude oil that are claimed to be recoverable under existing economic and operating conditions.[1]
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is only this producible fraction that is considered to be reserves. The ratio of producible oil reserves to total oil in place for a given field is often referred to as the recovery factor. Recovery factors vary greatly among oil fields. The recovery factor of any particular field may change over time based on operating history and in response to changes in technology and economics. The recovery factor may also rise over time if additional investment is made in enhanced oil recovery techniques such as gas injection, water-flooding[2], or microbial enhanced oil recovery.
Because the geology of the subsurface cannot be examined directly, indirect techniques must be used to estimate the size and recoverability of the resource. While new technologies have increased the accuracy of these techniques, significant uncertainties still remain. In general, most early estimates of the reserves of an oil field are conservative and tend to grow with time. This phenomenon is called reserves growth.[3]
Many oil producing nations do not reveal their reservoir engineering field data, and instead provide unaudited claims for their oil reserves. The numbers disclosed by some national governments are suspected of being manipulated for political reasons.
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is only this producible fraction that is considered to be reserves. The ratio of producible oil reserves to total oil in place for a given field is often referred to as the recovery factor. Recovery factors vary greatly among oil fields. The recovery factor of any particular field may change over time based on operating history and in response to changes in technology and economics. The recovery factor may also rise over time if additional investment is made in enhanced oil recovery techniques such as gas injection, water-flooding[2], or microbial enhanced oil recovery.
Because the geology of the subsurface cannot be examined directly, indirect techniques must be used to estimate the size and recoverability of the resource. While new technologies have increased the accuracy of these techniques, significant uncertainties still remain. In general, most early estimates of the reserves of an oil field are conservative and tend to grow with time. This phenomenon is called reserves growth.[3]
Many oil producing nations do not reveal their reservoir engineering field data, and instead provide unaudited claims for their oil reserves. The numbers disclosed by some national governments are suspected of being manipulated for political reasons.
Classifications
Reserves are those quantities of petroleum claimed to be commercially recoverable by application of development projects to known accumulations under defined conditions.[6] Reserves must satisfy four criteria: They must be:
discovered through one or more exploratory wells[6]
recoverable using existing technology[6]
commercially viable[6]
remaining in the ground[6]
All reserve estimates involve uncertainty, depending on the amount of reliable geologic and engineering data available and the interpretation of those data. The relative degree of uncertainty can be expressed by dividing reserves into two principal classifications - proved and unproved.[6] Unproved reserves can further be divided into two subcategories - probable and possible to indicate the relative degree of uncertainty about their existence.[6] The most commonly accepted definitions of these are based on those approved by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC) in 1997
discovered through one or more exploratory wells[6]
recoverable using existing technology[6]
commercially viable[6]
remaining in the ground[6]
All reserve estimates involve uncertainty, depending on the amount of reliable geologic and engineering data available and the interpretation of those data. The relative degree of uncertainty can be expressed by dividing reserves into two principal classifications - proved and unproved.[6] Unproved reserves can further be divided into two subcategories - probable and possible to indicate the relative degree of uncertainty about their existence.[6] The most commonly accepted definitions of these are based on those approved by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC) in 1997
Proved reserves
Proved reserves are those reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions, with existing technology. Industry specialists refer to this as P90 (i.e. having a 90% certainty of being produced). Proved reserves are also known in the industry as 1P.
Proved reserves are further subdivided into Proved Developed (PD) and Proved Undeveloped (PUD). PD reserves are reserves that can be produced with existing wells and perforations, or from additional reservoirs where minimal additional investment (operating expense) is required.[10] PUD reserves require additional capital investment (e.g. drilling new wells) to bring the oil to the surface.
Proved reserves are the only type the U.S. Securities and Exchange Commission allows oil companies to report to investors. Companies listed on U.S. stock exchanges must substantiate their claims, but many governments and national oil companies do not disclose verifying data to support their claims.
Proved reserves are further subdivided into Proved Developed (PD) and Proved Undeveloped (PUD). PD reserves are reserves that can be produced with existing wells and perforations, or from additional reservoirs where minimal additional investment (operating expense) is required.[10] PUD reserves require additional capital investment (e.g. drilling new wells) to bring the oil to the surface.
Proved reserves are the only type the U.S. Securities and Exchange Commission allows oil companies to report to investors. Companies listed on U.S. stock exchanges must substantiate their claims, but many governments and national oil companies do not disclose verifying data to support their claims.
Saturday, August 15, 2009
Oil well
An oil well is a general term for any boring through the Earth's surface designed to find and produce petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil, and a well designed to produce mainly or only gas may be termed a gas well.
Life of a well
The creation and life of a well can be divided up into five segments:
- Planning
- Drilling
- Completion
- Production
- Abandonment
Drilling
The well is created by drilling a hole 5 to 36 inches (127.0 mm to 914.4 mm) diameter into the earth with a drilling rig which rotates a drill string with a bit attached. After the hole is drilled, sections of steel tubing (casing), slightly smaller in diameter than the borehole, are placed in the hole. Cement may be placed between the outside of the casing and the borehole. The casing provides structural integrity to the newly drilled wellbore in addition to isolating potentially dangerous high pressure zones from each other and from the surface.
With these zones safely isolated and the formation protected by the casing, the well can be drilled deeper (into potentially more-unstable and violent formations) with a smaller bit, and also cased with a smaller size casing. Modern wells often have 2-5 sets of subsequently smaller hole sizes drilled inside one another, each cemented with casing.
To drill the well
- The drill bit, aided by the weight of thick walled pipes called "drill collars" above it, cuts into the rock. There are different types of drillbit, some cause the rock to fail by compressive failure. Others shear slices off the rock as the bit turns.
- Drilling fluid (aka "mud") is pumped down the inside of the drill pipe and exits at the drill bit. Drilling mud is a complex mixture of fluids, solids and chemicals which must be carefully tailored to provide the correct physical and chemical characteristics required to safely drill the well., Particular functions of the drilling mud include cooling the bit, lifting rock cuttings to the surface, preventing destabilisation of the rock in the wellbore walls and overcoming the pressure of fluids inside the rock so that these fluids don't enter the wellbore.
- The generated rock "cuttings" are swept up by the drilling fluid as it circulates back to surface outside the drill pipe. The fluid then goes through "shakers" which strain the cuttings from the good fluid which is returned to the pit. Watching for abnormalities in the returning cuttings and monitoring pit volume or rate of returning fluid are imperative to catch "kicks" (when the formation pressure at the depth of the bit is more than the hydrostatic head of the mud above, which if not controlled temporarily by closing the blowout preventers and ultimately by increasing the density of the drilling fluid would allow formation fluids and mud to come up uncontrollably) early.
- The pipe or drill string to which the bit is attached is gradually lengthened as the well gets deeper by screwing in additional 30-foot (10 m) joints (i.e., sections) of pipe under the kelly or topdrive at the surface. This process is called making a connection. Usually joints are combined into 3 joints equaling 1 stand. Some smaller rigs only use 2 joints and some rigs can handle stands of 4 joints.
This process is all facilitated by a drilling rig which contains all necessary equipment to circulate the drilling fluid, hoist and turn the pipe, control downhole pressures, remove cuttings from the drilling fluid, and generate onsite power for these operations.
Completion
After drilling and casing the well, it must be 'completed'. Completion is the process in which the well is enabled to produce oil or gas.
In a cased-hole completion, small holes called perforations are made in the portion of the casing which passed through the production zone, to provide a path for the oil to flow from the surrounding rock into the production tubing. In open hole completion, often 'sand screens' or a 'gravel pack' is installed in the last drilled, uncased reservoir section. These maintain structural integrity of the wellbore in the absence of casing, while still allowing flow from the reservoir into the wellbore. Screens also control the migration of formation sands into production tubulars and surface equipment, which can cause washouts and other problems, particularly from unconsolidated sand formations in offshore fields.
After a flow path is made, acids and fracturing fluids are pumped into the well to fracture, clean, or otherwise prepare and stimulate the reservoir rock to optimally produce hydrocarbons into the wellbore. Finally, the area above the reservoir section of the well is packed off inside the casing, and connected to the surface via a smaller diameter pipe called tubing. This arrangement provides a redundant barrier to leaks of hydrocarbons as well as allowing damaged sections to be replaced. Also, the smaller diameter of the tubing produces hydrocarbons at an increased velocity in order to overcome the hydrostatic effects of heavy fluids such as water.
In many wells, the natural pressure of the subsurface reservoir is high enough for the oil or gas to flow to the surface. However, this is not always the case, especially in depleted fields where the pressures have been lowered by other producing wells, or in low permeability oil reservoirs. Installing a smaller diameter tubing may be enough to help the production, but artificial lift methods may also be needed. Common solutions include downhole pumps, gas lift, or surface pump jacks. Many new systems in the last ten years have been introduced for well completion. Multiple packer systems with frac ports or port collars in an all in one system have cut completion costs and improved production, especially in the case of horizontal wells. These new systems allow casings to run into the lateral zone with proper packer/frac port placement for optimal hydrocarbon recovery.
In a cased-hole completion, small holes called perforations are made in the portion of the casing which passed through the production zone, to provide a path for the oil to flow from the surrounding rock into the production tubing. In open hole completion, often 'sand screens' or a 'gravel pack' is installed in the last drilled, uncased reservoir section. These maintain structural integrity of the wellbore in the absence of casing, while still allowing flow from the reservoir into the wellbore. Screens also control the migration of formation sands into production tubulars and surface equipment, which can cause washouts and other problems, particularly from unconsolidated sand formations in offshore fields.
After a flow path is made, acids and fracturing fluids are pumped into the well to fracture, clean, or otherwise prepare and stimulate the reservoir rock to optimally produce hydrocarbons into the wellbore. Finally, the area above the reservoir section of the well is packed off inside the casing, and connected to the surface via a smaller diameter pipe called tubing. This arrangement provides a redundant barrier to leaks of hydrocarbons as well as allowing damaged sections to be replaced. Also, the smaller diameter of the tubing produces hydrocarbons at an increased velocity in order to overcome the hydrostatic effects of heavy fluids such as water.
In many wells, the natural pressure of the subsurface reservoir is high enough for the oil or gas to flow to the surface. However, this is not always the case, especially in depleted fields where the pressures have been lowered by other producing wells, or in low permeability oil reservoirs. Installing a smaller diameter tubing may be enough to help the production, but artificial lift methods may also be needed. Common solutions include downhole pumps, gas lift, or surface pump jacks. Many new systems in the last ten years have been introduced for well completion. Multiple packer systems with frac ports or port collars in an all in one system have cut completion costs and improved production, especially in the case of horizontal wells. These new systems allow casings to run into the lateral zone with proper packer/frac port placement for optimal hydrocarbon recovery.
Production
The production stage is the most important stage of a well's life, when the oil and gas are produced. By this time, the oil rigs and workover rigs used to drill and complete the well have moved off the wellbore, and the top is usually outfitted with a collection of valves called a production tree. These valves regulate pressures, control flows, and allow access to the wellbore in case further completion work is needed. From the outlet valve of the production tree, the flow can be connected to a distribution network of pipelines and tanks to supply the product to refineries, natural gas compressor stations, or oil export terminals.
As long as the pressure in the reservoir remains high enough, the production tree is all that is required to produce the well. If the pressure depletes and it is considered economically viable, an artificial lift method mentioned in the completions section can be employed.
Workovers are often necessary in older wells, which may need smaller diameter tubing, scale or paraffin removal, acid matrix jobs, or completing new zones of interest in a shallower reservoir. Such remedial work can be performed using workover rigs – also known as pulling units or completion rigs – to pull and replace tubing, or by the use of well intervention techniques utilizing coiled tubing. Depending on the type of lift system and wellhead a rod rig or flushby can be used to change a pump without pulling the tubing.
Enhanced recovery methods such as water flooding, steam flooding, or CO2 flooding may be used to increase reservoir pressure and provide a "sweep" effect to push hydrocarbons out of the reservoir. Such methods require the use of injection wells (often chosen from old production wells in a carefully determined pattern), and are used when facing problems with reservoir pressure depletion, high oil viscosity, or can even be employed early in a field's life. In certain cases – depending on the reservoir's geomechanics – reservoir engineers may determine that ultimate recoverable oil may be increased by applying a waterflooding strategy early in the field's development rather than later. Such enhanced recovery techniques are often called "tertiary recovery".
As long as the pressure in the reservoir remains high enough, the production tree is all that is required to produce the well. If the pressure depletes and it is considered economically viable, an artificial lift method mentioned in the completions section can be employed.
Workovers are often necessary in older wells, which may need smaller diameter tubing, scale or paraffin removal, acid matrix jobs, or completing new zones of interest in a shallower reservoir. Such remedial work can be performed using workover rigs – also known as pulling units or completion rigs – to pull and replace tubing, or by the use of well intervention techniques utilizing coiled tubing. Depending on the type of lift system and wellhead a rod rig or flushby can be used to change a pump without pulling the tubing.
Enhanced recovery methods such as water flooding, steam flooding, or CO2 flooding may be used to increase reservoir pressure and provide a "sweep" effect to push hydrocarbons out of the reservoir. Such methods require the use of injection wells (often chosen from old production wells in a carefully determined pattern), and are used when facing problems with reservoir pressure depletion, high oil viscosity, or can even be employed early in a field's life. In certain cases – depending on the reservoir's geomechanics – reservoir engineers may determine that ultimate recoverable oil may be increased by applying a waterflooding strategy early in the field's development rather than later. Such enhanced recovery techniques are often called "tertiary recovery".
Abandonment
When the well no longer produces or produces so poorly that it is a liability, it is abandoned. In this process, tubing is removed from the well and sections of well bore are filled with cement to isolate the flow path between gas and water zones from each other, as well as the surface. Completely filling the well bore with cement is costly and unnecessary. The surface around the wellhead is then excavated, and the wellhead and casing are cut off, a cap is welded in place and then buried.
The point at which the well no longer makes a profit and is plugged and abandoned is called the “economic limit.” The equation to determine the economic limit contains four factors, namely: (1) taxes, (2) operating cost, (3) oil price, and (4) royalty. When oil taxes are raised, the economic limit is raised. When oil price is increased, the economic limit is lowered.
When the economic limit is raised, the life of the well is decreased. Proven oil reserves are lost when the life of an oil well is decreased. Inversely, when the economic limit is lowered, the life of the well is increased. Proven oil reserves are increased when the life of the well is increased.
At the economic limit there often is still a significant amount of unrecoverable oil left in the reservoir. It might be tempting to defer physical abandonment for an extended period of time, hoping that the oil price will go up or that new supplemental recovery techniques will be perfected. However, lease provisions and governmental regulations usually require quick abandonment; liability and tax concerns also may favor abandonment.
In theory an abandoned well can be reentered and restored to production (or converted to injection service for supplemental recovery or for downhole hydrocarbons storage), but reentry often proves to be difficult mechanically and not cost effective.
The point at which the well no longer makes a profit and is plugged and abandoned is called the “economic limit.” The equation to determine the economic limit contains four factors, namely: (1) taxes, (2) operating cost, (3) oil price, and (4) royalty. When oil taxes are raised, the economic limit is raised. When oil price is increased, the economic limit is lowered.
When the economic limit is raised, the life of the well is decreased. Proven oil reserves are lost when the life of an oil well is decreased. Inversely, when the economic limit is lowered, the life of the well is increased. Proven oil reserves are increased when the life of the well is increased.
At the economic limit there often is still a significant amount of unrecoverable oil left in the reservoir. It might be tempting to defer physical abandonment for an extended period of time, hoping that the oil price will go up or that new supplemental recovery techniques will be perfected. However, lease provisions and governmental regulations usually require quick abandonment; liability and tax concerns also may favor abandonment.
In theory an abandoned well can be reentered and restored to production (or converted to injection service for supplemental recovery or for downhole hydrocarbons storage), but reentry often proves to be difficult mechanically and not cost effective.
Types of wells
Oil wells come in many varieties. By produced fluid, there can be wells that produce oil, wells that produce oil and natural gas, or wells that only produce natural gas. Natural gas is almost always a byproduct of producing oil, since the small, light gas carbon chains come out of solution as it undergoes pressure reduction from the reservoir to the surface, similar to uncapping a bottle of soda pop where the carbon dioxide effervesces. Unwanted natural gas can be a disposal problem at the well site. If there is not a market for natural gas near the wellhead it is virtually valueless since it must be piped to the end user. Until recently, such unwanted gas was burned off at the wellsite, but due to environmental concerns this practice is becoming less common. Often, unwanted (or 'stranded' gas without a market) gas is pumped back into the reservoir with an 'injection' well for disposal or repressurizing the producing formation. Another solution is to export the natural gas as a liquid.Gas-to-liquid, (GTL) is a developing technology that converts stranded natural gas into synthetic gasoline, diesel or jet fuel through the Fischer-Tropsch process developed in World War II Germany. Such fuels can be transported through conventional pipelines and tankers to users. Proponents claim GTL fuels burn cleaner than comparable petroleum fuels. Most major international oil companies are in advanced development stages of GTL production, with a world-scale (140,000 bbl/day) GTL plant in Qatar scheduled to come online before 2010. In locations such as the United States with a high natural gas demand, pipelines are constructed to take the gas from the wellsite to the end consumer.
Another obvious way to classify oil wells is by land or offshore wells. There is very little difference in the well itself. An offshore well targets a reservoir that happens to be underneath an ocean. Due to logistics, drilling an offshore well is far more costly than an onshore well. By far the most common type is the onshore well. These wells dot the Southern and Central Great Plains, Southwestern United States, and are the most common wells in the Middle East.
Another way to classify oil wells is by their purpose in contributing to the development of a resource. They can be characterized as:
- production wells are drilled primarily for producing oil or gas, once the producing structure and characteristics are determined
- appraisal wells are used to assess characteristics (such as flow rate) of a proven hydrocarbon accumulation
- exploration wells are drilled purely for exploratory (information gathering) purposes in a new area
- wildcat wells are those drilled outside of and not in the vicinity of known oil or gas fields.
Lahee classification
- New Field Wildcat (NFW) – far from other producing fields and on a structure that has not previously produced.
- New Pool Wildcat (NPW) – new pools on already producing structure.
- Deeper Pool Test (DPT) – on already producing structure and pool, but on a deeper pay zone.
- Shallower Pool Test (SPT) – on already producing structure and pool, but on a shallower pay zone.
- Outpost (OUT) – usually two or more locations from nearest productive area.
- Development Well (DEV) – can be on the extension of a pay zone, or between existing wells (Infill).
Saturday, August 1, 2009
Oil platform
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An offshore platform, often referred to as an oil platform or an oil rig, is a large structure used to house workers and machinery needed to drill wells in the ocean bed, extract oil and/or natural gas, process the produced fluids, and ship or pipe them to shore. Depending on the circumstances, the platform may be fixed to the ocean floor, may consist of an artificial island, or may float.
Most offshore platforms are located on the continental shelf, though with advances in technology and increasing crude oil prices, drilling and production in deeper waters has become both feasible and economically viable. A typical platform may have around thirty wellheads located on the platform and directional drilling allows reservoirs to be accessed at both different depths and at remote positions up to 5 miles (8 kilometers) from the platform.
Remote subsea wells may also be connected to a platform by flow lines and by umbilical connections; these subsea solutions may consist of single wells or of a manifold centre for multiple wells.
Volumetric method
Volumetric methods attempt to determine the amount of oil-in-place by using the size of the reservoir as well as the physical properties of its rocks and fluids. Then a recovery factor is assumed, using assumptions from fields with similar characteristics. OIP is multiplied by the recovery factor to arrive at a reserve number. Current recovery factors for oil fields around the world typically range between 10 and 60 percent; some are over 80 percent. The wide variance is due largely to the diversity of fluid and reservoir characteristics for different deposits. The method is most useful early in the life of the reservoir, before significant production has occurred.
Materials balance method
The materials balance method for an oil field uses an equation that relates the volume of oil, water and gas that has been produced from a reservoir, and the change in reservoir pressure, to calculate the remaining oil. It assumes that as fluids from the reservoir are produced, there will be a change in the reservoir pressure that depends on the remaining volume of oil and gas. The method requires extensive pressure-volume-temperature analysis and an accurate pressure history of the field. It requires some production to occur (typically 5% to 10% of ultimate recovery), unless reliable pressure history can be used from a field with similar rock and fluid characteristics.
Production decline curve method
The decline curve method uses production data to fit a decline curve and estimate future oil production. The three most common forms of decline curves are exponential, hyperbolic, and harmonic. It is assumed that the production will decline on a reasonably smooth curve, and so allowances must be made for wells shut in and production restrictions. The curve can be expressed mathematically or plotted on a graph to estimate future production. It has the advantage of (implicitly) including all reservoir characteristics. It requires a sufficient history to establish a statistically significant trend, ideally when production is not curtailed by regulatory or other artificial conditions
Reserves growth
Experience shows that initial estimates of the size of newly discovered oil fields are usually too low. As years pass, successive estimates of the ultimate recovery of fields tend to increase. The term reserve growth refers to the typical increases in estimated ultimate recovery that occur as oil fields are developed and produced.
OPEC countries
There are doubts about the reliability of official OPEC reserves estimates, which are not provided with any form of audit or verification that meet external reporting standards.
Since a system of country production quotas was introduced in the 1980s, partly based on reserves levels, there have been dramatic increases in reported reserves among Opec producers. In 1983, Kuwait increased its proven reserves from 67 Gbbl (10.7×10^9 m3) to 92 Gbbl (14.6×10^9 m3). In 1985-86, the UAE almost tripled its reserves from 33 Gbbl (5.2×10^9 m3) to 97 Gbbl (15.4×10^9 m3). Saudi Arabia raised its reported reserve number in 1988 by 50%. In 2001-02, Iran raised its proven reserves by some 30% to 130 Gbbl (21×10^9 m3), which advanced it to second place in reserves and ahead of Iraq. Iran denied accusations of a political motive behind the readjustment, attributing the increase instead to a combination of new discoveries and improved recovery. No details were offered of how any of the upgrades were arrived at
Since a system of country production quotas was introduced in the 1980s, partly based on reserves levels, there have been dramatic increases in reported reserves among Opec producers. In 1983, Kuwait increased its proven reserves from 67 Gbbl (10.7×10^9 m3) to 92 Gbbl (14.6×10^9 m3). In 1985-86, the UAE almost tripled its reserves from 33 Gbbl (5.2×10^9 m3) to 97 Gbbl (15.4×10^9 m3). Saudi Arabia raised its reported reserve number in 1988 by 50%. In 2001-02, Iran raised its proven reserves by some 30% to 130 Gbbl (21×10^9 m3), which advanced it to second place in reserves and ahead of Iraq. Iran denied accusations of a political motive behind the readjustment, attributing the increase instead to a combination of new discoveries and improved recovery. No details were offered of how any of the upgrades were arrived at
Arctic Prospective Resources
A 2008 United States Geological Survey estimates that areas north of the Arctic Circle have 90 billion barrels (1.4×1010 m3) of undiscovered, technically recoverable oil (and 44 billion barrels (7.0×109 m3) of natural gas liquids ) in 25 geologically defined areas thought to have potential for petroleum. This represented 13% of the expected undiscovered oil in the world. Of the estimated totals, more than half of the undiscovered oil resources were estimated to occur in just three geologic provinces - Arctic Alaska, the Amerasia Basin, and the East Greenland Rift Basins. More than 70% of the mean undiscovered oil resources was estimated to occur in five provinces: Arctic Alaska, Amerasia Basin, East Greenland Rift Basins, East Barents Basins, and West Greenland–East Canada. It was further estimated that approximately 84% of the oil and gas would occur offshore. The USGS did not consider economic factors such as the effects of permanent sea ice or oceanic water depth in its assessment of undiscovered oil and gas resources. This assessment was lower than a 2000 survey, which had included lands south of the arctic circle
Miscellaneous Prospective Resources
The Exclusive Economic Zone is a delineated offshore area, mostly to the west and north of Cuba which under international agreements is owned by Cuba. This 112,000 square kilometer zone has been divided into 59 exploration blocks. A 2004 joint partnership between a Spanish oil company and Cuba’s state oil company (CUPET) estimated Cuba's off-shore reserves to be able to ultimately produce between 4.6 and 9.3 billion barrels of crude oil. The US Geologica (USGS) estimates that Cuba has resources up to 9 billion barrels (1.4×109 m3) of oil. In October 2008, the Cuban government announced that it had discovered oil basins which would double its total oil resources to 20 billion barrels (3.2×109 m3). Note that consistent with the definitions of Reserves and Resources as given in the above sections, at this stage (June 2009), given no commercial discoveries to date, all recoverable oil estimates in the Exclusive Economic Zone (EEZ) are Prospective Resources estimates and not Reserves estimates.
Oil field
An oil field is a region with an abundance of oil wells extracting petroleum (crude oil) from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scatt
ered across the area. In addition, there may be exploratory wells probing the edges, pipelines to transport the oil elsewhere, and support facilities.
Because an oil field may be remote from civilization, establishing a field is often an extremely complicated exercise in logistics. For instance, workers have to work there for months or years and require housing. In turn, housing and equipment require electricity and water. Pipelines in cold areas may need to be heated. Excess natural gas needs to be burned off if there is no way to make use of it, requiring a furnace and stacks, and pipes to carry it from well to furnace.
ered across the area. In addition, there may be exploratory wells probing the edges, pipelines to transport the oil elsewhere, and support facilities.Because an oil field may be remote from civilization, establishing a field is often an extremely complicated exercise in logistics. For instance, workers have to work there for months or years and require housing. In turn, housing and equipment require electricity and water. Pipelines in cold areas may need to be heated. Excess natural gas needs to be burned off if there is no way to make use of it, requiring a furnace and stacks, and pipes to carry it from well to furnace.
Friday, July 31, 2009
Oil well
An oil well is a general term for any boring through the Earth's surface designed to find and produce petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil, and a well designed to produce mainly or only gas may be termed a gas well.
Life of a well:
The creation and life of a well can be divided up into five segments:
1.Planning
2.Drilling
3.Completion
4.Production
2.Drilling
3.Completion
4.Production
Abandonment
Primary recovery
During the primary recovery stage, reservoir drive comes from a number of natural mechanisms. These include: natural water displacing oil upward into the well, expansion of the natural gas at the top of the reservoir, expansion of gas initially dissolved in the crude oil, and gravity drainage resulting from the movement of oil within the reservoir from the upper to the lower parts where the wells are located. Recovery factor during the primary recovery stage is typically 5-15%.
While the underground pressure in the oil reservoir is sufficient to force the oil to the surface, all that is necessary is to place a complex arrangement of valves (the Christmas tree) on the well head to connect the well to a pipeline network for storage and processing.
While the underground pressure in the oil reservoir is sufficient to force the oil to the surface, all that is necessary is to place a complex arrangement of valves (the Christmas tree) on the well head to connect the well to a pipeline network for storage and processing.
Secondary recovery
Over the lifetime of the well the pressure will fall, and at some point there will be insufficient underground pressure to force the oil to the surface. After natural reservoir drive diminishes, secondary recovery methods are applied. They rely on the supply of external energy into the reservoir in the form of injecting fluids to increase reservoir pressure, hence replacing or increasing the natural reservoir drive with an artificial drive. Sometimes pumps, such as beam pumps and electrical submersible pumps (ESPs), are used to bring the oil to the surface. Other secondary recovery techniques increase the reservoir's pressure by water injection, natural gas reinjection and gas lift, which injects air, carbon dioxide or some other gas into the reservoir. Typical recovery factor from water-flood operations is about 30%, depending on the properties of oil and the characteristics of the reservoir rock. On average, the recovery factor after primary and secondary oil recovery operations is between 30 and 50%.
Tertiary recovery
Tertiary oil recovery reduces the oil's viscosity to increase oil production. Thermally enhanced oil recovery methods (TEOR) are tertiary recovery techniques that heat the oil and make it easier to extract. Steam injection is the most common form of TEOR, and is often done with a cogeneration plant. In this type of cogeneration plant, a gas turbine is used to generate electricity and the waste heat is used to produce steam, which is then injected into the reservoir. This form of recovery is used extensively to increase oil production in the San Joaquin Valley, which has very heavy oil, yet accounts for 10% of the United States' oil production.[citation needed] In-situ burning is another form of TEOR, but instead of steam, some of the oil is burned to heat the surrounding oil. Occasionally, detergents are also used to decrease oil viscosity as a tertiary oil recovery method.
Another method to reduce viscosity is carbon dioxide flooding.
Tertiary recovery allows another 5% to 15% of the reservoir's oil to be recovered.
Tertiary recovery begins when secondary oil recovery isn't enough to continue adequate production, but only when the oil can still be extracted profitably,. This depends on the cost of the extraction method and the current price of crude oil. When prices are high, previously unprofitable wells are brought back into production and when they are low, production is curtailed.
Recovery rates
The amount of oil that is recoverable is determined by a number of factors including the permeability of the rocks, the strength of natural drives (the gas present, pressure from adjacent water or gravity), and the viscosity of the oil. When the reservoir rocks are "tight" such as shale, oil generally cannot flow through but when they are permeable such as in sandstone, oil flows freely. The flow of oil is often helped by natural pressures surrounding the reservoir rocks including natural gas that may be dissolved in the oil (see Gas oil ratio), natural gas present above the oil, water below the oil and the strength of gravity. Oils tend to span a large range of viscosity from liquids as light as gasoline to heavy as tar. The lightest forms tend to result in higher production rates.
Locating the oil field
Nowadays, the geologists use seismic surveys to search for geological structures that may form oil reservoirs. The "classic" method includes making underground explosion nearby and observing the seismic response that provides information about the geological structures under the ground. However, "passive" methods that extract information from naturally-occurring seismic waves are also known.
Other instruments such as gravimeters and magnetometers are also sometimes used in the search for petroleum. When extracting crude oil, it normally starts by drilling wells into the underground reservoir. When an oil well has been tapped, a geologist (known on the rig as the "mudlogger") will note its presence. Historically, in the USA, some oil fields existed where the oil rose naturally to the surface, but most of these fields have long since been used up, except certain places in Alaska. Often many wells (called multilateral wells) are drilled into the same reservoir, to ensure that the extraction rate will be economically viable. Also, some wells (secondary wells) may be used to pump water, steam, acids or various gas mixtures into the reservoir to raise or maintain the reservoir pressure, and so maintain an economic extraction rate.
Other instruments such as gravimeters and magnetometers are also sometimes used in the search for petroleum. When extracting crude oil, it normally starts by drilling wells into the underground reservoir. When an oil well has been tapped, a geologist (known on the rig as the "mudlogger") will note its presence. Historically, in the USA, some oil fields existed where the oil rose naturally to the surface, but most of these fields have long since been used up, except certain places in Alaska. Often many wells (called multilateral wells) are drilled into the same reservoir, to ensure that the extraction rate will be economically viable. Also, some wells (secondary wells) may be used to pump water, steam, acids or various gas mixtures into the reservoir to raise or maintain the reservoir pressure, and so maintain an economic extraction rate.
Extraction of petroleum
The extraction of petroleum is the process by which usable petroleum is extracted and removed from the earth.
List of oil refineries
This is a list of oil refineries. The Oil and Gas Journal\ also publishes a worldwide list of refineries annually in a country-by-country tabulation that includes for each refinery: location, crude oil daily processing capacity, and the size of each process unit in the refinery. For the U.S., the refinery list is further categorized state-by-state. The list usually appears in one of their December issues. It is about 45 pages in length and is updated each year with additions, deletions, name changes, capacity changes, etc.
Composition
The proportion of hydrocarbons in the mixture is highly variable and ranges from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumens.
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium. The exact molecular composition varies widely from formation to formation but the proportion of chemical elements vary over fairly narrow limits as follows:
Composition by weight
Element
Percent range
Carbon
83 to 87%
Hydrogen
10 to 14%
Nitrogen
0.1 to 2%
Oxygen
0.1 to 1.5%
Sulfur
0.5 to 6%
Metals
less than 1000 ppm
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium. The exact molecular composition varies widely from formation to formation but the proportion of chemical elements vary over fairly narrow limits as follows:
Composition by weight
Element
Percent range
Carbon
83 to 87%
Hydrogen
10 to 14%
Nitrogen
0.1 to 2%
Oxygen
0.1 to 1.5%
Sulfur
0.5 to 6%
Metals
less than 1000 ppm
Petroleum
Petroleum (L. petroleum, from Greek πετρέλαιον, lit. "rock oil") or crude oil is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds.
The term "petroleum" was first used in the treatise De Natura Fossilium, published in 1546 by the German mineralogist Georg Bauer, also known as Georgius Agricola
The term "petroleum" was first used in the treatise De Natura Fossilium, published in 1546 by the German mineralogist Georg Bauer, also known as Georgius Agricola
Oil refining in the United States
Early refineries in the U.S. processed crude oil to recover the kerosene. Other products (like gasoline) were considered wastes and were often dumped directly into the nearest river. The invention of the automobile shifted the demand to gasoline and diesel, which remain the primary refined products today. Refineries pre-dating the US Environmental Protection Agency (EPA) were not subject to any environmental protection regulations. Today, national and state legislation requires refineries to meet stringent air and water cleanliness standards. In fact, oil companies in the U.S. perceive obtaining a permit to build a modern refinery to be so difficult and costly that no new refineries have been built (though many have been expanded) in the U.S. since 1976. Some attribute increasing dependence in the U.S. on imports of finished gasoline, to lack of new refineries. On the other hand, studies have revealed that accelerating mergers among the refineries have further reduced capacity, resulting in tighter markets particularly in the U.S.
Siting/locating of petroleum refineries
The principles of finding a construction site for refineries are similar to those for other chemical plants:
1.The site has to be reasonably far from residential areas.
2.Facilities for raw materials access and products delivery to markets should be easily available.
3.Processing energy requirements should be easily available.
4.Waste product disposal should not cause difficulties.
For refineries which use large amounts of process steam and cooling water, an abundant source of water is important. Because of this, oil refineries are often located (associated to a port) near navigable rivers or even better on a sea shore. Either are of dual purpose, making also available cheap transport by river or by sea. Although the advantages of crude oil transport by pipeline are evident, and the method is also often used by oil companies to deliver large output products such as fuels to their bulk distribution terminals, pipeline delivery is not practical for small output products. For these, rail cars, road tankers or barges may be used.
It is useful to site refineries in areas where there is abundant space to be used by the same company or others, for the construction of petrochemical plants, solvent manufacturing (fine fractionating) plants and/or similar plants to allow these easy access to large output refinery products for further processing, or plants that produce chemical additives that the refinery may need to blend into a product at source rather than at blending terminals.
1.The site has to be reasonably far from residential areas.
2.Facilities for raw materials access and products delivery to markets should be easily available.
3.Processing energy requirements should be easily available.
4.Waste product disposal should not cause difficulties.
For refineries which use large amounts of process steam and cooling water, an abundant source of water is important. Because of this, oil refineries are often located (associated to a port) near navigable rivers or even better on a sea shore. Either are of dual purpose, making also available cheap transport by river or by sea. Although the advantages of crude oil transport by pipeline are evident, and the method is also often used by oil companies to deliver large output products such as fuels to their bulk distribution terminals, pipeline delivery is not practical for small output products. For these, rail cars, road tankers or barges may be used.
It is useful to site refineries in areas where there is abundant space to be used by the same company or others, for the construction of petrochemical plants, solvent manufacturing (fine fractionating) plants and/or similar plants to allow these easy access to large output refinery products for further processing, or plants that produce chemical additives that the refinery may need to blend into a product at source rather than at blending terminals.
Flow diagram of typical refinery
The image below is a schematic flow diagram of a typical oil refinery that depicts the various unit processes and the flow of intermediate product streams that occurs between the inlet crude oil feedstock and the final end products. The diagram depicts only one of the literally hundreds of different oil refinery configurations. The diagram also does not include any of the usual refinery facilities providing utilities such as steam, cooling water, and electric power as well as storage tanks for crude oil feedstock and for intermediate products and end products.
There are many process configurations other than that depicted above. For example, the vacuum distillation unit may also produce fractions that can be refined into endproducts such as: spindle oil used in the textile industry, light machinery oil, motor oil, and steam cylinder oil. As another example, the vacuum residue may be processed in a coker unit to produce petroleum coke.Major products
Petroleum products are usually grouped into three categories: light distillates (LPG, gasoline, naphtha), middle distillates (kerosene, diesel), heavy distillates and residuum (heavy fuel oil, lubricating oils, wax, tar). This classification is based on the way crude oil is distilled and separated into fractions (called distillates and residuum) as in the above drawing.
1.Liquid petroleum gas(LPG)
2.Gasoline (also known as petrol)
3.Naphtha
4.Kerosene and related jet aircraft fuels
5.Diesel fuel
6.Fuel oils
7.Lubricating oils
8.Paraffin wax
9.Asphalt and Tar
10.Petroleum coke
1.Liquid petroleum gas(LPG)
2.Gasoline (also known as petrol)
3.Naphtha
4.Kerosene and related jet aircraft fuels
5.Diesel fuel
6.Fuel oils
7.Lubricating oils
8.Paraffin wax
9.Asphalt and Tar
10.Petroleum coke
Operation
Raw or unprocessed crude oil is not generally useful. Although "light, sweet" (low viscosity, low sulfur) crude oil has been used directly as a burner fuel for steam vessel propulsion, the lighter elements form explosive vapors in the fuel tanks and are therefore hazardous, especially in warships. Instead, the hundreds of different hydrocarbon molecules in crude oil are separated in a refinery into components which can be used as fuels, lubricants, and as feedstock in petrochemical processes that manufacture such products as plastics, detergents, solvents, elastomers and fibers such as nylon and polyesters.
Petroleum fossil fuels are burned in internal combustion engines to provide power for ships, automobiles, aircraft engines, lawn mowers, chainsaws, and other machines. Different boiling points allow the hydrocarbons to be separated by distillation. Since the lighter liquid products are in great demand for use in internal combustion engines, a modern refinery will convert heavy hydrocarbons and lighter gaseous elements into these higher value product
s.
Petroleum fossil fuels are burned in internal combustion engines to provide power for ships, automobiles, aircraft engines, lawn mowers, chainsaws, and other machines. Different boiling points allow the hydrocarbons to be separated by distillation. Since the lighter liquid products are in great demand for use in internal combustion engines, a modern refinery will convert heavy hydrocarbons and lighter gaseous elements into these higher value product
s.Oil can be used in a variety of ways because it contains hydrocarbons of varying molecular masses, forms and lengths such as paraffins, aromatics, naphthenes (or cycloalkanes), alkenes, dienes, and alkynes. While the molecules in crude oil include different atoms such as sulfur and nitrogen, the hydrocarbons are the most common form of molecules, which are molecules of varying lengths and complexity made of hydrogen and carbon atoms, and a small number of oxygen atoms. The differences in the structure of these molecules account for their varying physical and chemical properties, and it is this variety that makes crude oil useful in a broad range of applications.
Oil refinery
An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units.
Oil and Gas Development Company Limited
Oil and Gas Development Company Limited (OGDCL) is a state corporation of Pakistan. It was established in 1961 to prospect, refine and sell oil and gas in Pakistan
By 1966, OGDCL had emerged as the dominant prospector in Pakistan with several significant discoveries in the Indus Basin.
In 1997, OGDCL was converted into a public limited company.
In 2005, the company reported a turnover of Rs.96,755 million.
On May 4th, 2006 the government of Pakistan appointed a Citigroup-led consortium to advise the state-run Privatisation Commission on the sale of 10 to 15 per cent (or 430 to 645 million shares) of the company. OGDCL is the second Pakistani company to have been listed at the London Stock Exchange.
By 1966, OGDCL had emerged as the dominant prospector in Pakistan with several significant discoveries in the Indus Basin.
In 1997, OGDCL was converted into a public limited company.
In 2005, the company reported a turnover of Rs.96,755 million.
On May 4th, 2006 the government of Pakistan appointed a Citigroup-led consortium to advise the state-run Privatisation Commission on the sale of 10 to 15 per cent (or 430 to 645 million shares) of the company. OGDCL is the second Pakistani company to have been listed at the London Stock Exchange.
Definition of oil reserves
Oil reserves are primarily a measure of geological risk - of the probability of oil existing and being producible under current economic conditions using current technology. The three categories of reserves generally used are proven, probable, and possible reserves.
Proven reserves - defined as oil and gas "Reasonably Certain" to be producible using current technology at current prices, with current commercial terms and government consent- also known in the industry as 1P. Some Industry specialists refer to this as P90 - i.e having a 90% certainty of being produced.
Probable reserves - defined as oil and gas "Reasonably Probable" of being produced using current or likely technology at current prices, with current commercial terms and government consent - Some Industry specialists refer to this as P50 - i.e having a 50% certainty of being produced. - This is also known in the industry as 2P or Proven plus probable.
Possible reserves - i.e "having a chance of being developed under favourable circumstances" - Some industry specialists refer to this as P10 - i.e having a 10% certainty of being produced. - This is also known in the industry as 3P or Proven plus probable plus possible.
Proven reserves - defined as oil and gas "Reasonably Certain" to be producible using current technology at current prices, with current commercial terms and government consent- also known in the industry as 1P. Some Industry specialists refer to this as P90 - i.e having a 90% certainty of being produced.
Probable reserves - defined as oil and gas "Reasonably Probable" of being produced using current or likely technology at current prices, with current commercial terms and government consent - Some Industry specialists refer to this as P50 - i.e having a 50% certainty of being produced. - This is also known in the industry as 2P or Proven plus probable.
Possible reserves - i.e "having a chance of being developed under favourable circumstances" - Some industry specialists refer to this as P10 - i.e having a 10% certainty of being produced. - This is also known in the industry as 3P or Proven plus probable plus possible.
Reserves and resources
Resources are hydrocarbons which may or may not be produced in the future. A resource number may be assigned to an undrilled prospect or an unappraised discovery. Appraisal by drilling additional delineation wells or acquiring extra seismic data will confirm the size of the field and lead to project sanction. At this point the relevant government body gives the oil company a production licence which enables the field to be developed. This is also the point at which oil reserves can be formally booked.
Licensing
Petroleum resources are typically owned by the government of the host country. In the USA most onshore (land) oil and gas rights (OGM) are owned by private individuals. Sometimes this is not the same person who owns the surface rights. In this case oil companies must negotiate terms for a lease of these rights with the individual who owns the OGM. In most nations the government issues licences to explore, develop and produce its oil and gas resources, which are typically administered by the oil ministry. There are several different types of licence. Typically oil companies operate in joint ventures to spread the risk, one of the companies in the partnership is designated the operator who actually supervises the work.
Terms used in petroleum evaluation
- Lead - a structure which may contain hydrocarbons
Dry Hole - Counter-intuitively, a formation that contains brine instead of oil.
Flat Spot - An oil-water contact on a seismic section; flat due to gravity.
Bright Spot - On a seismic section, coda that have high amplitudes due to a formation containing hydrocarbons.
Prospect - a lead which has been fully evaluated and is ready to drill
Play - A particular combination of reservoir, seal, source and trap associated with proven hydrocarbon accumulations
Chance of Success - An estimate of the chance of all the elements (see above) within a prospect working, described as a probability. High risk prospects have a less than 10% chance of working, medium risk prospects 10-20%, low risk prospects over 20%. Typically about 40% of wells recently drilled find commercial hydrocarbons.
Hydrocarbon in Place - amount of hydrocarbon likely to be contained in the prospect. This is calculated using the volumetric equation - GRV x N/G x Porosity x Sh x FVF
GRV - Gross Rock volume - amount of rock in the trap above the hydrocarbon water contact
N/G - net/gross ratio - percentage of the GRV formed by the reservoir rock ( range is 0 to 1)
Porosity - percentage of the net reservoir rock occupied by pores (typically 5-35%)
Sh - hydrocarbon saturation - some of the pore space is filled with water - this must be discounted
FVF - formation volume factor - oil shrinks and gas expands when brought to the surface. The FVF converts volumes at reservoir conditions (high pressure and high temperature) to storage and sale conditions
Recoverable hydrocarbons - amount of hydrocarbon likely to be recovered during production. This is typically 10-50% in an oil field and 50-80% in a gas field.
Elements of a petroleum prospect
A prospect is a potential trap which geologists believe may contain hydrocarbons. A significant amount of geological, structural and seismic investigation must first be completed to redefine the potential hydrocarbon drill location from a lead to a prospect. Five elements have to be present for a prospect to work and if any of them fail neither oil nor gas will be present.
Exploration methods
Visible surface features such as oil seeps, natural gas seeps, pockmarks (underwater craters caused by escaping gas) provide basic evidence of hydrocarbon generation (be it shallow or deep in the Earth). However, most exploration depends on highly sophisticated technology to detect and determine the extent of these deposits using exploration geophysics. Areas thought to contain hydrocarbons are initially subjected to a gravity survey, magneic survey, passi seismicor regional seismic reflection surveys to detect large scale features of the sub-surface geology. Features of interest (known as leads) are subjected to more detailed seismic surveys which work on the principle of the time it takes for reflected sound waves to travel through matter (rock) of varying densities and using the process of depth conversion to create a profile of the substructure. Finally, when a prospect has been identified and evaluated and passes the oil company's selection criteria, an exploration well is drilled in an attempt to conclusively determine the presence or absence of oil or gas.
Oil exploration is an expensive, high-risk operation. Offshore and remote area exploration is generally only undertaken by very large corporations or national governments. Typical Shallow shelf oil wells (e.g. North sea) cost USD$10 - 30 Million, while deep water wells can cost up to USD$100 million plus. Hundreds of smaller companies search for onshore hydrocarbon deposits worldwide, with some wells costing as little as USD$100,000.
Oil exploration is an expensive, high-risk operation. Offshore and remote area exploration is generally only undertaken by very large corporations or national governments. Typical Shallow shelf oil wells (e.g. North sea) cost USD$10 - 30 Million, while deep water wells can cost up to USD$100 million plus. Hundreds of smaller companies search for onshore hydrocarbon deposits worldwide, with some wells costing as little as USD$100,000.
Future of petroleum production
The future of petroleum as a fuel remains somewhat controversial. USA Today news reported in 2004 that there were 40 years of petroleum left in the ground. Some argue that because the total amount of petroleum is finite, the dire predictions of the 1970s have merely been postponed. Others claim that technology will continue to allow for the production of cheap hydrocarbons and that the earth has vast sources of unconventional petroleum reserves in the form of tar sands, bitumen fields and oil shale that will allow for petroleum use to continue in the future. They argue that both the Canadian tar sands and United States oil shale deposits represent potential reserves with just as much oil as current liquid petroleum deposits.
Oil spills
Crude oil and refined fuel spills from tanker ship accidents have damaged natural ecosystems in Alaska, the Galapagos Islands, France and many other places.
The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Atlantic Empress, Amoco Cadiz). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill
Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it cats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily.
Control of oil spills is difficult, requires ad hoc methods, and often a large amount of manpower (picture). The dropping of bombs and incendiary devices from aircraft on the Torrey Canyon wreck produced poor results; modern techniques would include pumping the oil from the wreck, like in the Prestige oil spill or the Erika oil spill.
The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Atlantic Empress, Amoco Cadiz). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill
Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it cats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily.
Control of oil spills is difficult, requires ad hoc methods, and often a large amount of manpower (picture). The dropping of bombs and incendiary devices from aircraft on the Torrey Canyon wreck produced poor results; modern techniques would include pumping the oil from the wreck, like in the Prestige oil spill or the Erika oil spill.
Extraction
Oil extraction is costly and sometimes environmentally damaging, although Dr. John Hunt of the Woods Hole Oceanographic Institution pointed out in a 1981 paper that over 70% of the reserves in the world are associated with visible macroseepages, and many oil fields are found due to natural seeps. Offshore exploration and extraction of oil disturbs the surrounding marine environment. Extraction may involve dredging, which stirs up the seabed, killing the sea plants that marine creatures need to survive. But at the same time, offshore oil platforms also form micro-habitats for marine creatures.
Fuels
The most common distillations of petroleum are fuels. Fuels include:
Ethane and other short-chain alkanes
Diesel fuel (petrodiesel)
Fuel oils
Gasoline (Petrol)
Jet fuel
Kerosene
Liquefied petroleum gas (LPG)
Ethane and other short-chain alkanes
Diesel fuel (petrodiesel)
Fuel oils
Gasoline (Petrol)
Jet fuel
Kerosene
Liquefied petroleum gas (LPG)
Petroleum industry
The petroleum industry is involved in the global processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America(40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone [20], though by 2007 this had dropped to 21% of world oil consumed
Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America(40%). The world at large consumes 30 billion barrels (4.8 km³) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United States alone [20], though by 2007 this had dropped to 21% of world oil consumed
Crude oil reservoirs
Three conditions must be present for oil reservoirs to form: a source rock rich in hydrocarbon material buried deep enough for subterranean heat to cook it into oil; a porous and permeable reservoir rock for it to accumulate in; and a cap rock (seal) or other mechanism that prevents it from escaping to the surface. Within these reservoirs, fluids will typically organize themselves like a three-layer cake with a layer of water below the oil layer and a layer of gas above it, although the different layers vary in size between reservoirs. Because most hydrocarbons are lighter than rock or water, they often migrate upward through adjacent rock layers until either reaching the surface or becoming trapped within porous rocks (known as reservoirs) by impermeable rocks above. However, the process is influenced by underground water flows, causing oil to migrate hundreds of kilometres horizontally or even short distances downward before becoming trapped in a reservoir. When hydrocarbons are concentrated in a trap, an oil field forms, from which the liquid can be extracted by drilling and pumping.
Crude Oil
Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and salinawaterwhich, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen. In Canada, bitumen is considered a sticky, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow.[5] Venezuela also has large amounts of oil in the Orinoco oil sands, although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extraheavy oil. These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570×10^9 m3) of bitumen and extra-heavy oil, about twice the volume of the world's reserves of conventional oil.
Composition of Crude oil
The proportion of hydrocarbons in the mixture is highly variable and ranges from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumens.
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium.
The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various hydrocarbons while the other organic compounds contain nitrogen, oxygen and sulfur, and trace amounts of metals such as iron, nickel, copper and vanadium.
Most Viewed Oil & Gas Exploration & Production Companies
- EXXON Mobil Corporation
- Danaher Corporation
- BPp.l.c
- Schlumberger Limited
- Chevron Corporation
- Shell Oil company
- Loews Corporation
- Devon energy corporation
- Chesapeak Energy Corporation.
Geologic Timeline
Geologic time, from the formation of the Earth at ~4.6 billion years ago to the present, is understood and represented by layered rocks throughout the world. By understanding the relative ages of layered and cross-cutting rocks, and the fossils they contain, geologists have developed a geologic time scale. Relative ages are cross-correlated with numerical ages derived from radioactive isotopes of elements contained in some of the geologic units. Using fossils and radiometric ages, geologists can compare the geologic strata of Montana with the "type section" of Devonian rocks exposed in the Devon area of southern England. For example, using fossils, geologists can compare certain geologic strata in Montana with the "type section" of Devonian age rocks in Devon, England and determine that their ages are the same. Radiometric dates tell us that Devonian rocks fall in a range of 369–410 million years ago.
For example, using fossils, geologists can compare certain geologic strata in Montana with the "type section" of Devonian age rocks in Devon, England and determine that their ages are the same. Radiometric dates tell us that Devonian rocks fall in a range of 369–410 million years ago. 
The area is structurally complex. Four styles of faulting are present in the northern part of the area. Northwest-striking thrust faults of probable Cretaceous age are the oldest structures recognized. These faults place older rocks over younger rocks, and portions of these structures are steep enough to be considered reverse faults. Normal faults are present behind and
parallel to several of the thrusts, bringing young rocks of the hanging wall down again. These normal faults may merge at depth with the thrust faults. A second type of normal fault is represented by a single low-angle, nearly horizontal structure, with the younger rocks on the upper plate. Age of this structure is uncertain, but most likely early Tertiary. The youngest group of normal faults are steep, with northerly or northeasterly strikes.
Folding in the northern part of the area is typically along north-west trending axes. The carbonate-bearing Wallace Formation was particularly susceptible to folding. The folding probably coincided with formation of the thrust faults during Cretaceous time.
The area with the least amount of structural complexity is the north-central portion of the map along the west side of Petty Mountain and Telephone Butte. A significant section of the Belt Supergroup is exposed here, from the Wallace Formation to the upper part of the Mount Shields Formation.
Geology and Mineral Research
Geologic and mineral research enhances Montana's information base, encourages responsible development and environmental protection, and provides key assessments of resource problems.
The Bureau's diverse research interests are supported by Federal and State funds. Bureau professionals in Butte and Billings are involved in over 70 outside-funded projects in cooperation with more than 100 different local, State, Federal, and private organizations. These projects, which evaluate all aspects of Montana's vast water and mineral resources, are distributed throughout the State.
Staff members conduct research in a variety of areas some of which are: geology of the Rocky Mountains, earthquake studies, fossil fuels, landslide studies, ground water, environmental assessment, and more recently, science education. In addition, Bureau professionals actively participate on approximately 50 technical advisory committees, councils, or study groups for the benefit of public organizations or agencies. Bureau personnel contribute their expertise and also continue to learn through their participation in and communication with these groups.Refining & Gas Processing Industry - Worldwide
Lists active and inactive refineries, gas processing plants and locations of contractors, manufacturers, suppliers, service companies, trade associations, and regulatory agencies worldwide. A description on each refinery is provided indicating the end products, charged and production capacity. Listings for gas processing plants reflect the parent company operating each plant, plant capacity, throughput, and CPD of each constituent. Engineering, construction, manufacturing, supply and service companies serving the worldwide refining industry are listed. Cross-references are included, reflecting name changes, new and past mergers and acquisitions.
Product No. EDIR04Price $175 US
Electronic directories are available for various segments of the oil and natural gas, and electric power industries.
These Directories provide valuable company location, description and contact information for tens of thousands of companies involved in the worldwide energy industry.
The electronic format allows for installation directly to the subscriber's computer hard drive in order to provide the fastest access available. Internet connection is not required to view the directory information. However, with Internet connection, directory listings can be updated on a regular basis, company websites can be visited, and emails can be sent directly to a listing. Specific companies can be searched and printed. Data cannot be exported from the directory software.
In the electronic format the directories are far superior to past print directories in the quantity and quality of the listings, and provide the most current information available anywhere in the industry
Product No. EDIR04Price $175 US
Electronic directories are available for various segments of the oil and natural gas, and electric power industries.
These Directories provide valuable company location, description and contact information for tens of thousands of companies involved in the worldwide energy industry.
The electronic format allows for installation directly to the subscriber's computer hard drive in order to provide the fastest access available. Internet connection is not required to view the directory information. However, with Internet connection, directory listings can be updated on a regular basis, company websites can be visited, and emails can be sent directly to a listing. Specific companies can be searched and printed. Data cannot be exported from the directory software.
In the electronic format the directories are far superior to past print directories in the quantity and quality of the listings, and provide the most current information available anywhere in the industry
REFINING & PETROCHEMICAL SURVEY
The REFINING & PETROCHEMICAL SURVEY, MIDDLE
EAST & NORTH AFRICA 2009 is the first in-depth and
independent study of its kind. It provides a comprehensive and
detailed analysis of the fast-growing refining and petrochemical
industries in the Middle East and North Africa.
In addition to the country reports, it includes a regional overview
section on the global trends in the MENA area where investments
of more than $115 billion are expected in the refining and
petrochemical sectors over the period 2009-2013. It contains the
latest, most accurate and most reliable information and data
required by all those involved or interested in the downstream oil
and gas activities in this highly strategic area.
* It is your road map not only to information but also to
operational decision-making in the MENA countries. Special
emphasis has been placed on the analysis of objectives,
capabilities and priorities of the main national companies:
Bapco, Borouge, EGPC, ENOC, GPIC, JPMC, JPRC,
KNPC, Naftec, NIOC, NIORDC, NOC, NPC, OCP,
Q-CHEM, QAFCO, QAPCO, Rasco, SABIC, Samir,
Saudi Aramco, Sonatrach, STIR, TAKREER...
The 2009 edition of the REFINING & PETROCHEMICAL
SURVEY, MIDDLE EAST & NORTH AFRICA contains in 412
pages a global MENA report and 18 country reports covering
the refining and petrochemical industries in:
• Algeria • Bahrain • Egypt
• Iran • Iraq • Jordan
• Kuwait • Lebanon • Libya
• Morocco • Oman • Qatar
• Saudi Arabia • Sudan • Syria
• Tunisia • U.A.E. • Yemen
* Each country repor t outlines government policy,
current and planned projects, production, foreign companies
involved, export schemes, domestic consumption, etc...
* 21 maps as well as 96 tables and graphs.
* Facts and details of the estimated $210 billion of refining and
petrochemical investments needed in the Arab countries
and Iran over the period 2004-2030.
* Addresses of oil, gas and petrochemical companies
operating in the Middle East and North Africa.
EAST & NORTH AFRICA 2009 is the first in-depth and
independent study of its kind. It provides a comprehensive and
detailed analysis of the fast-growing refining and petrochemical
industries in the Middle East and North Africa.
In addition to the country reports, it includes a regional overview
section on the global trends in the MENA area where investments
of more than $115 billion are expected in the refining and
petrochemical sectors over the period 2009-2013. It contains the
latest, most accurate and most reliable information and data
required by all those involved or interested in the downstream oil
and gas activities in this highly strategic area.
* It is your road map not only to information but also to
operational decision-making in the MENA countries. Special
emphasis has been placed on the analysis of objectives,
capabilities and priorities of the main national companies:
Bapco, Borouge, EGPC, ENOC, GPIC, JPMC, JPRC,
KNPC, Naftec, NIOC, NIORDC, NOC, NPC, OCP,
Q-CHEM, QAFCO, QAPCO, Rasco, SABIC, Samir,
Saudi Aramco, Sonatrach, STIR, TAKREER...
The 2009 edition of the REFINING & PETROCHEMICAL
SURVEY, MIDDLE EAST & NORTH AFRICA contains in 412
pages a global MENA report and 18 country reports covering
the refining and petrochemical industries in:
• Algeria • Bahrain • Egypt
• Iran • Iraq • Jordan
• Kuwait • Lebanon • Libya
• Morocco • Oman • Qatar
• Saudi Arabia • Sudan • Syria
• Tunisia • U.A.E. • Yemen
* Each country repor t outlines government policy,
current and planned projects, production, foreign companies
involved, export schemes, domestic consumption, etc...
* 21 maps as well as 96 tables and graphs.
* Facts and details of the estimated $210 billion of refining and
petrochemical investments needed in the Arab countries
and Iran over the period 2004-2030.
* Addresses of oil, gas and petrochemical companies
operating in the Middle East and North Africa.
Proceedings of the Euro-Arab Gas Forum
The proceedings of the Euro-Arab Gas Forum, organized
by APRC in Paris, 19-20 March 2009, are available in PDF
format. They include more than 20 papers presented by
high officials and European and Arab experts.They are
sold separetely at Û480. A 30% discount is extended to
subscribers of any other APRC publication.
by APRC in Paris, 19-20 March 2009, are available in PDF
format. They include more than 20 papers presented by
high officials and European and Arab experts.They are
sold separetely at Û480. A 30% discount is extended to
subscribers of any other APRC publication.
NATURAL GAS SURVEY
The NATURAL GAS SURVEY, MIDDLE EAST & NORTH
AFRICA, 2009 provides a complete, unrivaled and quarterly
updated analysis of the gas industry in the Arab countries and Iran.
In addition to the country-by-country reports, it includes a regional
overview section on the objectives and priorities of the national
companies : ADNOC, EGAS, NIGC, NOC, PDO, QATARGAS,
RASGAS, SAUDI ARAMCO, SONATRACH, etc...
It has been designed to provide the most accurate and reliable
information required by all companies, consultants, financial
institutions and agencies involved or interested in the gas industry
in the MENA countries. The in-depth assessment of current and
grassroots projects helps you to save time, identify business
opportunities and minimize political and economic risks.
* The new updated and expanded edition of NATURAL GAS
SURVEY, MIDDLE EAST & NORTH AFRICA, 2009 contains
in 578 pages 18 country reports covering all aspects of the
gas industry in :
• Algeria • Bahrain • Egypt • Iran
• Iraq • Jordan • Kuwait • Lebanon
• Libya • Morocco • Oman • Qatar
• Saudi Arabia • Sudan • Syria • Tunisia
• U.A.E. • Yemen • World Gas Statistics
* Each country report outlines the government policy, reserves,
production, field development, foreign companies involved,
export schemes, domestic consumption, etc...
* 57 maps illustrating gas fields and facilities, as well as 195
tables and graphs.
* Facts and details of the estimated $32.6 billion per year of
gas investment needed in the Arab countries and Iran over
the period 2009-2013.
* World gas statistics: LNG, LPG and GTL schemes.
AFRICA, 2009 provides a complete, unrivaled and quarterly
updated analysis of the gas industry in the Arab countries and Iran.
In addition to the country-by-country reports, it includes a regional
overview section on the objectives and priorities of the national
companies : ADNOC, EGAS, NIGC, NOC, PDO, QATARGAS,
RASGAS, SAUDI ARAMCO, SONATRACH, etc...
It has been designed to provide the most accurate and reliable
information required by all companies, consultants, financial
institutions and agencies involved or interested in the gas industry
in the MENA countries. The in-depth assessment of current and
grassroots projects helps you to save time, identify business
opportunities and minimize political and economic risks.
* The new updated and expanded edition of NATURAL GAS
SURVEY, MIDDLE EAST & NORTH AFRICA, 2009 contains
in 578 pages 18 country reports covering all aspects of the
gas industry in :
• Algeria • Bahrain • Egypt • Iran
• Iraq • Jordan • Kuwait • Lebanon
• Libya • Morocco • Oman • Qatar
• Saudi Arabia • Sudan • Syria • Tunisia
• U.A.E. • Yemen • World Gas Statistics
* Each country report outlines the government policy, reserves,
production, field development, foreign companies involved,
export schemes, domestic consumption, etc...
* 57 maps illustrating gas fields and facilities, as well as 195
tables and graphs.
* Facts and details of the estimated $32.6 billion per year of
gas investment needed in the Arab countries and Iran over
the period 2009-2013.
* World gas statistics: LNG, LPG and GTL schemes.
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