geology and petroleum

Geology and Petroleum:Geology and Petroleum:Applications of Earth Science in the OilApplications of Earth Science in the OilApplications of Earth Science in the Oil Applications of Earth Science in the Oil

and Gas Industry and Gas Industry

Dr. G. Michael GrammerDr. G. Michael Grammer

Michigan Geological Repository forMichigan Geological Repository forR h d Ed ti (MGRRE)R h d Ed ti (MGRRE)Research and Education (MGRRE)Research and Education (MGRRE)

Western Michigan UniversityWestern Michigan University

What do Geologists Do?What do Geologists Do?

•• IgneousIgneousM t hiM t hi•• MetamorphicMetamorphic

•• SedimentarySedimentary

What do Geologists Do?What do Geologists Do?gg•• Economic GeologistsEconomic Geologists•• Engineering GeologistsEngineering Geologists

•• Geological OceanographersGeological Oceanographers•• PaleoecologistsPaleoecologistsEngineering GeologistsEngineering Geologists

•• Environmental Geologists Environmental Geologists •• GeochemistsGeochemists

G h l i tG h l i t

•• PaleoecologistsPaleoecologists•• PaleontologistsPaleontologists•• Petroleum GeologistsPetroleum Geologists

•• GeochronologistsGeochronologists•• GeomorphologistsGeomorphologists•• GeophysicistsGeophysicists

•• PetrologistsPetrologists•• Planetary GeologistsPlanetary Geologists•• SedimentologistsSedimentologistsyy

•• Glacial GeologistsGlacial Geologists•• HydrogeologistsHydrogeologists•• HydrologistsHydrologists

gg•• Soil ScientistsSoil Scientists•• SeismologistsSeismologists

StratigraphersStratigraphers•• HydrologistsHydrologists•• Marine GeologistsMarine Geologists•• MineralogistsMineralogists

•• StratigraphersStratigraphers•• Structural GeologistsStructural Geologists•• Volcanologists Volcanologists

History of PetroleumHistory of PetroleumFirst Use:First Use: •• Egyptians: oil to preserve mummiesEgyptians: oil to preserve mummies

•• Chinese: natural gas for fuelChinese: natural gas for fuel•• Babylonians: oil to seal walls and pave streetsBabylonians: oil to seal walls and pave streets•• Americans: tar to seal canoesAmericans: tar to seal canoes

First Drilling:First Drilling: •• Chinese using bamboo: to 800’ in 347 ADChinese using bamboo: to 800’ in 347 AD•• Americans using cable tool: to 70’ in 1859 ADAmericans using cable tool: to 70’ in 1859 AD

First Product:First Product: •• Kerosene for lampsKerosene for lamps•• Gasoline was unwanted byGasoline was unwanted by--productproduct

Demand Demand Increase:Increase:

•• Industrial RevolutionIndustrial Revolution-- Internal Combustion Engine (1885)Internal Combustion Engine (1885)

Gl b l E i G thGl b l E i G th-- Global Economic GrowthGlobal Economic Growth

What is Petroleum?What is Petroleum?What is Petroleum?What is Petroleum?

•• Petroleum:Petroleum: a natural yellowa natural yellow--toto--black flammable black flammable liquid hydrocarbon found beneath liquid hydrocarbon found beneath th th’ fth th’ fthe earth’s surfacethe earth’s surface

•• Hydrocarbon:Hydrocarbon: an organic compound made up an organic compound made up yy g p pg p pof carbon and hydrogen atomsof carbon and hydrogen atoms

The Goal The Goal -- ‘Black Gold’‘Black Gold’Petroleum Supplies our Energy NeedsPetroleum Supplies our Energy Needs

Light Texas CrudePalo Pinto Field

North Texas

Light Texas CrudePalo Pinto Field

North Texas

Heavy Texas CrudeHumble Oil FieldSouthwest Texas

Heavy Texas CrudeHumble Oil FieldSouthwest Texas

Misc. Facts about OilMisc. Facts about Oil•• Oil provides 40% of energy Americans consume and Oil provides 40% of energy Americans consume and

97% of transportation fuels97% of transportation fuels97% of transportation fuels97% of transportation fuels•• Recoverable Reserves: est. 70+ years at current rates Recoverable Reserves: est. 70+ years at current rates

of consumptionof consumptionof consumptionof consumption•• U.S. Oil Industry employs nearly 1.5 million peopleU.S. Oil Industry employs nearly 1.5 million people

Motorists pa an a erage of 42 4 cents/gal in gasolineMotorists pa an a erage of 42 4 cents/gal in gasoline•• Motorists pay an average of 42.4 cents/gal in gasoline Motorists pay an average of 42.4 cents/gal in gasoline taxestaxesT k 20 t d t il i ll ti fT k 20 t d t il i ll ti f•• Takes 20 new cars to produce tailpipe pollution of one Takes 20 new cars to produce tailpipe pollution of one new car in the 1960’snew car in the 1960’s

Petroleum ProductsPetroleum Products

GasolineGasoline 19 5 gallons19 5 gallons

A Barrel of Crude Oil Provides:A Barrel of Crude Oil Provides:

Gasoline Gasoline -- 19.5 gallons19.5 gallons

Fuel OilFuel Oil -- 9.2 gallons9.2 gallons

One Barrel =One Barrel =42 gallons42 gallons Fuel Oil Fuel Oil 9.2 gallons9.2 gallons

Jet Fuel Jet Fuel -- 4.1 gallons4.1 gallons

Asphalt Asphalt -- 2.3 gallons2.3 gallons

Kerosene Kerosene -- 0.2 gallons0.2 gallonsLubricants Lubricants -- 0.5 gallons0.5 gallonsPetrochemicals,Petrochemicals,other prod ctsother prod cts 6 2 gallons6 2 gallonsother products other products -- 6.2 gallons6.2 gallons

American Petroleum Institute, 1999American Petroleum Institute, 1999

Refining PetroleumRefining Petroleum Fuel GasFuel GasRefining Petroleumg

GasolineGasoline

Fuel GasFuel Gas

Kerosene – Jet FuelKerosene – Jet Fuel

Heating OilHeating Oil

Lubricating OilLubricating Oil

Crude Oil VaporCrude Oil Vapor OilOil

Residual Products– Residual Products–

VaporVapor

Li id C d OilLi id C d Oil24803

Asphalt, Heavy Fuel Oil Asphalt,

Heavy Fuel OilLiquid Crude OilLiquid Crude Oil

after World Book Encyclopediaafter World Book Encyclopedia

Petrochemical ProductsPetrochemical Products

•• DetergentsDetergents CosmeticsCosmetics

More Than 3,000 ProductsMore Than 3,000 Products

•• Detergents Detergents -- CosmeticsCosmetics•• Fertilizers Fertilizers -- Weed KillersWeed Killers

M di iM di i A ti tiA ti ti A th tiA th ti•• Medicine Medicine -- Antiseptics Antiseptics -- AnestheticsAnesthetics•• Plastics (CD’s, furniture) Plastics (CD’s, furniture) -- Synthetic FibersSynthetic Fibers•• Synthetic RubberSynthetic Rubber•• Rust PreventativesRust Preventatives•• Liquid Petroleum GasLiquid Petroleum Gas


U. S. Energy DemandsU. S. Energy Demandsgygy

Consumption:Consumption: PetroleumPetroleum 37%37%Consumption:Consumption: PetroleumPetroleum 37%37%Natural GasNatural Gas 30%30%CoalCoal 22%22%CoalCoal 22%22%HydroelectricHydroelectric 4%4%NuclearNuclear 7%7%NuclearNuclear 7%7%

United States Petroleum ImportsUnited States Petroleum Imports

1950’s1950’s 15%15%1960’s1960’s 20%20%1970’s1970’s 36%36%1980’s1980’s 42%42%1980’s1980’s 42%42%1990’s1990’s 50%50%1990 s1990 s 50%50%May 2005May 2005 67%67%May 2005May 2005 67%67%


U. S. Energy Demands (2006)U. S. Energy Demands (2006)gy ( )gy ( )

•• Total import of Crude: 14,331,000 Total import of Crude: 14,331,000 per dayper day•• Total % of imports: May 2006 = 71.8%Total % of imports: May 2006 = 71.8%

May 2005 = 67%May 2005 = 67%yy•• Natural Gas: U.S. used 22.5 trillion ftNatural Gas: U.S. used 22.5 trillion ft33 in 2000in 2000•• Approx 85% of natural gas used is produced inApprox 85% of natural gas used is produced in•• Approx. 85% of natural gas used is produced in Approx. 85% of natural gas used is produced in

U.S., majority of rest comes from CanadaU.S., majority of rest comes from Canada

U S Demand for ElectricityU S Demand for Electricity ––U. S. Demand for Electricity U. S. Demand for Electricity SourceSource

•• Coal: 55%Coal: 55%•• Nuclear: 21%Nuclear: 21%Nuclear: 21%Nuclear: 21%•• Hydroelectric: 9%Hydroelectric: 9%•• Natural Gas: 9%Natural Gas: 9%•• Natural Gas: 9%Natural Gas: 9%•• Refined Petroleum: 3.5%Refined Petroleum: 3.5%

Other (renewable biomass solar windOther (renewable biomass solar wind•• Other (renewable biomass, solar,wind, Other (renewable biomass, solar,wind, geothermal): 0.5%geothermal): 0.5%

Worldwide Demand for Energy Worldwide Demand for Energy ––gygySource (currently)Source (currently)

•• Oil and Natural Gas: 61%Oil and Natural Gas: 61%Oil and Natural Gas: 61%Oil and Natural Gas: 61%•• Coal: 26%Coal: 26%•• Hydroelectric: 7%Hydroelectric: 7%•• Hydroelectric: 7%Hydroelectric: 7%•• Uranium: 6%Uranium: 6%

PopulationPopulation--Driven Energy DemandDriven Energy Demand

World PopulationWorld Population(Millions)(Millions)

World Primary Energy World Primary Energy ConsumptionConsumption(Quadrillion BTU)(Quadrillion BTU)

10,00010,000

( )( ) (Quadrillion BTU)(Quadrillion BTU)

500500

8,0008,000

6 0006 0006,0006,000

4,0004,000

400400

2,0002,000

00

300300

0015001500 17001700 19001900 21002100 19751975 19851985 19951995 20052005 20152015

AAPG Explorer, 8/95AAPG Explorer, 8/95

Worldwide Demand for EnergyWorldwide Demand for EnergyWorldwide Demand for EnergyWorldwide Demand for Energy

•• Worldwide Population (1995): 5.6 BillionWorldwide Population (1995): 5.6 Billion•• Since 1950Since 1950 population doubledpopulation doubled•• Since 1950 Since 1950 -- population doubledpopulation doubled•• between 1950 and 2010 between 1950 and 2010 -- population will triple population will triple

(> 8 billion today)(> 8 billion today)(> 8 billion today)(> 8 billion today)•• Energy Consumption from 1983Energy Consumption from 1983--1992 1992 -- rose 22%rose 22%

19801980 20102010 E C ti t d t i 66%E C ti t d t i 66%•• 19801980--2010 2010 -- Energy Consumption expected to rise 66%Energy Consumption expected to rise 66%

Worldwide Demand for Energy Worldwide Demand for Energy ––Consumption Increases (expected)Consumption Increases (expected)

•• Crude OilCrude Oil•• Crude OilCrude Oil–– from 1980from 1980--2010: 40% increase 2010: 40% increase

f 1992f 1992 2010 30% i2010 30% i–– from 1992from 1992--2010: 30% increase2010: 30% increase–– from 66.7 MMBOPD to 86.5 MMBOPDfrom 66.7 MMBOPD to 86.5 MMBOPD

•• Natural GasNatural Gas–– from 1980from 1980--2010: 100% increase2010: 100% increase–– from 1992from 1992--2010: 53% increase2010: 53% increase

Worldwide Demand for Energy Worldwide Demand for Energy ––Consumption Increases (expected)Consumption Increases (expected)Consumption Increases (expected)Consumption Increases (expected)

•• CoalCoal–– from 1980from 1980--2010: 50% increase2010: 50% increase–– from 1992from 1992--2010: 32% increase2010: 32% increase

H d l t iH d l t i•• HydroelectricHydroelectric–– U.S. limited growth 1) major environmental concerns; U.S. limited growth 1) major environmental concerns;

2) political2) political land use and water rightsland use and water rights–– 2) political 2) political -- land use and water rightsland use and water rights–– primary growth e.g. China, Brazil, Turkeyprimary growth e.g. China, Brazil, Turkey

•• NuclearNuclearNuclearNuclear–– not expected to increasenot expected to increase–– retirement of old plantsretirement of old plantspp–– limited new construction (regulatory and public)limited new construction (regulatory and public)

Gasoline Price: Cost vs. TaxGasoline Price: Cost vs. Tax

CountryCountry

Per Gallon as of July 10, 2006 in U.S. DollarsPer Gallon as of July 10, 2006 in U.S. DollarsPump Pump PricePriceCityCity

NetherlandsNetherlandsUKUK11

PricePrice7.13 7.13 5 995 99

AmsterdamAmsterdamLondonLondonUKUK

ItalyItaly11

FranceFrance11

5.995.995.965.965.575.57

LondonLondonMilanMilanParisParis

GermanyGermany11

JapanJapan11

S iS i 11

5.545.544.554.554 244 24

FrankfurtFrankfurtTokyoTokyoM d idM d idSpainSpain11

CanadaCanada11

USAUSA22

4.244.244.104.102 942 94

MadridMadridCalgaryCalgaryKalamazooKalamazooUSAUSA

VenezuelaVenezuela2.942.940.120.12

KalamazooKalamazooCaracasCaracas

Oil and Gas Production Oil and Gas Production Reservoir TypesReservoir Types

Carbonates40%

Sandstones60%

OilOilCarbonates

30%Sandstones70%

GasGas

The Origin of PetroleumThe Origin of Petroleum

OrganicOrganic richrich Thermally MaturedThermally MaturedOrganicOrganic--richrichSource RockSource Rock

Thermally MaturedThermally MaturedOrganic MatterOrganic Matter OilOil

Source Rock for PetroleumSource Rock for Petroleum

Organic-Rich

Thin Laminae Measured Values

Total Organic Carbon

HydrogenIndex

3.39 378

PyrolyticallyIn-Place

PetroleumS1

Pyrolytically GeneratedPetroleum

S2

2.24 12.80

LOMPOC Quarry Sample

2

1 Inch1 Inch LOMPOC Quarry SampleMonterey Formation, CA

Types of PetroleumTypes of Petroleum

Oil and gas are formed by the thermal Oil and gas are formed by the thermal ki f i d b i d iki f i d b i d icracking of organic compounds buried in cracking of organic compounds buried in

finefine--grained rocks.grained rocks.

Algae = Hydrogen rich = OilAlgae = Hydrogen rich = Oil--proneproneg y gg y g pp

Wood = Hydrogen poor = GasWood = Hydrogen poor = Gas--proneproney g py g p pp

Petroleum System ElementsPetroleum System Elements•• Source Rock Source Rock -- A rock with abundant hydrocarbonA rock with abundant hydrocarbon--prone prone

organic matterorganic matter•• Reservoir RockReservoir Rock -- A rock in which oil and gas accumulates:A rock in which oil and gas accumulates:

-- Porosity Porosity -- space between rock grains in which oil space between rock grains in which oil accumulatesaccumulates

-- Permeability Permeability -- passagepassage--ways between pores through ways between pores through which oil and gas moveswhich oil and gas moves

S l R kS l R k A k th h hi h il d tA k th h hi h il d t•• Seal RockSeal Rock -- A rock through which oil and gas cannot move A rock through which oil and gas cannot move effectively (such as mudstone and claystone)effectively (such as mudstone and claystone)

•• Migration RouteMigration Route -- Avenues in rock through which oil andAvenues in rock through which oil andMigration RouteMigration Route Avenues in rock through which oil and Avenues in rock through which oil and gas moves from source rock to trapgas moves from source rock to trap

•• Trap Trap -- The structural and stratigraphic configuration that The structural and stratigraphic configuration that focuses oil and gas into an accumulationfocuses oil and gas into an accumulation

Petroleum System ProcessesPetroleum System Processes

OilOil

Gas CapGas Cap

Seal RockSeal Rock

ReservoirRockReservoirRock

OilOil

WaterWaterEntrapmentEntrapmentAccumulationAccumulation

MigrationMigration

RockRock

120° F120° F

350° F350° FGenerationGenerationSource RockSource Rock

2480

GenerationGeneration

Reservoir SandstoneReservoir SandstoneGood Porosity = Lots of Space for PetroleumGood Porosity = Lots of Space for Petroleum

Pores(blue)(blue)

Anticlinal TheoryAnticlinal TheoryPetroleum Accumulates in Structural ClosurePetroleum Accumulates in Structural Closure

GasGasOilOilOilOil

WaterWater

Directional Drilling Avoids Surface HazardsDirectional Drilling Avoids Surface Hazards

GasGas

OilOilWaterWater


G�� E��

Global Oil and Gas Fields

GasGasOilOil

Projected World Energy SuppliesProjected World Energy Supplies

100100

HydroelectricHydroelectric1993

New

New

Careers inCareers inOil & GasOil & Gas

Remain ImportantRemain Important

8080

100100100 BILLION

BARRELS

BillionBillion

Solar, WindGeothermal

w Techno

w TechnoWorld Energy DemandWorld Energy Demand

6060

BillionBarrels

of OilEquivalent

per Year

BillionBarrels

of OilEquivalent

per YearN t l

Nuclear ElectricCoalCoal

ologiesologies

World Energy DemandWorld Energy Demand

4040

p(GBOE)(GBOE) Natural

GasNatural

Gas

C d OilCrude Oil

Decre

Decre

Fossil Fossil

1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 3000

2020 Crude OilCrude Oil

easingeasing

FuelsFuels

024839-2

19001900 19201920 19401940 19601960 19801980 20002000 20202020 20402040 20602060 20802080 3000300024929after Edwards,

AAPG 8/97

Largest Hydrocarbon BasinsLargest Hydrocarbon Basinsby Ultimate Potentialby Ultimate Potentialby Ultimate Potentialby Ultimate Potential

GeologicGeologicggMapping and SamplingMapping and Sampling•• GravityGravity •• Seismic ReflectionSeismic Reflection•• GravityGravity•• MagneticsMagnetics

•• Seismic ReflectionSeismic Reflection•• Geologic MappingGeologic Mapping

American Petroleum Institute, American Petroleum Institute, 19861986

JMA

Stratigraphy:Stratigraphy:Depositional SystemsDepositional SystemsSequence StratigraphySequence StratigraphyDepositional SystemsDepositional SystemsSequence StratigraphySequence StratigraphyStratigraphy:Stratigraphy:

Understanding the processes creating sedimentary units

Sequence StratigraphySequence StratigraphyPetrophysics and PaleontologyPetrophysics and PaleontologySequence StratigraphySequence StratigraphyPetrophysics and PaleontologyPetrophysics and Paleontology

Record missing due to erosion: Must reconstruct history from regional dataME

SOZO

IC&

CENO

ZOICClastic Sedimentary

ERM

IAN

U

L

PER

OU

S

U

MPEN

N.

Upper PermianRock PhysicsRock Physics

ForwardModeling

CA

RB

ON

IFER

LMIS

S.

M-U Pennsylvanian

C b tC b tModeling

Sedimentary ModelingSedimentary Modeling

CarbonateAnaloguesCarbonateAnalogues

ImportanceImportance

Kerans, 1998

Importance Importance of Combining of Combining Outcrop andOutcrop andOutcrop and Outcrop and

Modern AnalogsModern Analogs

Grammer, 2003Grammer, 2003AAPG Distinguished LecturerAAPG Distinguished Lecturer

Seismic ImagingSeismic Imaging3D Marine Data Acquisition3D Marine Data Acquisition

Silicon GraphicsSilicon Graphics

Seismic Imaging of AnticlineSeismic Imaging of AnticlineVibrator Truck

(Energy Source)Recording Truck Geophonep(Receivers)

ReturningReturningSound WavesSound WavesSound WavesSound Waves


Seismic Image of AnticlineSeismic Image of Anticline

10001000000000

20002000

illise

cond

silli

seco

nds

MM

30003000

1 km1 km

Gasoline prices and Hurricane KatrinaGasoline prices and Hurricane KatrinaGasoline prices and Hurricane KatrinaGasoline prices and Hurricane Katrina(Oct. 13, 2005)(Oct. 13, 2005)

Atl t $5 70/ ll t dAtl t $5 70/ ll t d•• Atlanta: $5.70/gallon yesterdayAtlanta: $5.70/gallon yesterday•• KK--zoo: $3.29/gallon this morningzoo: $3.29/gallon this morning

Why?Why?Why?Why?

Supply of Crude OilSupply of Crude Oil

•• 561 rigs/platforms in GOM evacuated561 rigs/platforms in GOM evacuated•• 20 rigs/platforms missing20 rigs/platforms missing•• GOM responsible for >25% of U.S. production GOM responsible for >25% of U.S. production p pp pof crude oil (91% 0f GOM production shut down)of crude oil (91% 0f GOM production shut down)•• Port Fouchon and LA Offshore PortPort Fouchon and LA Offshore Port•• Port Fouchon and LA Offshore Port Port Fouchon and LA Offshore Port ––shut down (handle >20% of crude imported)shut down (handle >20% of crude imported)

Supply of Refined ProductsSupply of Refined Products

•• 8 refineries shut down others operating at8 refineries shut down others operating at8 refineries shut down, others operating at 8 refineries shut down, others operating at fraction of capacityfraction of capacity

•• Strategic Petroleum Reserve Strategic Petroleum Reserve –– 700 MMBO700 MMBOin 4 salt caverns in LA and TXin 4 salt caverns in LA and TX

Supply of Refined ProductsSupply of Refined ProductsSupp y o e ed oductsSupp y o e ed oducts

Explorer PipelineExplorer Pipeline: (shut down): (shut down)•• Explorer PipelineExplorer Pipeline: (shut down): (shut down)–– 1400 miles long, 1400 miles long,

15 000 ll i t15 000 ll i t–– 15,000 gallons per minute15,000 gallons per minute–– 72 kinds of gasoline, diesel, and jet fuel to 72 kinds of gasoline, diesel, and jet fuel to

16 states in Midwest16 states in Midwest•• Colonial PipelineColonial Pipeline: (25% capacity): (25% capacity)

–– 5500 miles long5500 miles long–– 100 million gallons per day100 million gallons per day–– 12 States and D.C. in southeast and east12 States and D.C. in southeast and east

Geology in SocietyGeology in SocietyResource Assessment:Resource Assessment: Fossil FuelsFossil Fuels

Water SuppliesWater SuppliesStratigraphic MineralsStratigraphic MineralsStratigraphic MineralsStratigraphic Minerals

Environmental Quality:Environmental Quality: Water QualityWater QualityEnvironmental Quality:Environmental Quality: Water QualityWater QualityWaste ManagementWaste Management

Catastrophe Management:Catastrophe Management: Volcanoes, Earthquakes,Volcanoes, Earthquakes,Landslides, Floods,Landslides, Floods,Tsunamis, Bolide ImpactsTsunamis, Bolide Impacts

Cli t ChCli t Ch D t ti P di tiD t ti P di tiClimate Change:Climate Change: Documentation, PredictionDocumentation, PredictionCoastal ManagementCoastal Management

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