introduction to petroleum engineering - lecture 1 - 28-09-2012 - final.ppt
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introduction to petroleum engineering lecture 1. reservoir rock, gas cap, etcTRANSCRIPT
BEng (Hons) Petroleum Engineering
Course:Introduction To Petroleum Engineering
InstructorDr. Tarek Darwich
Course Outlines:
• What is Petroleum Engineering?• The Life Cycle of Oil and Gas projects,• Origin, formation and accumulation of Petroleum, • Oil & Gas Exploration,• Appraisal of Oil & Gas Discoveries,• Development of Oil & Gas Discoveries,• Producing Oil & Gas Fields,• Transportation of Oil & Gas, • The Petroleum Industry & the Environment,• Petroleum Economics.
Introduction to Petroleum Engineering
Year 2012 - 2013
Instructor: Dr. Tarek Darwich
• BSc, MSc (Cairo University) and PhD & DIC (Imperial College) all in Petroleum Engineering.
• Part-time Lecturer at the University of Portsmouth• Petroleum Engineering Manager at New African Global Energy
(NewAge)
• Industrial Experience with: Sasol, Gaz de France, Noble Energy, ENAP/SIPETROL, Qatar Petroleum, W S Atkins & various consultancy roles.
• Academic Experience with Imperial College, Kuwait University & Cairo university.
Introduction to Petroleum Engineering
Year 2012 - 2013
What does Petroleum Mean?
• Petroleum means Rock Oil. The word comes from the Greek word “Petra” meaning Rock and the Latin word “Oleum” meaning oil.
• Crude Oil is a mixture of hydrocarbons that exist in liquid phase in underground reservoirs and remains liquid at atmospheric pressures.
• Natural Gas is a mixture of hydrocarbon compounds and some non-hydrocarbons that exist either in gaseous phase or in solution with oil in underground reservoirs.
• Petroleum products (e.g. gasoline, Kerosene, …….) are all the substances made of Petroleum.
Introduction to Petroleum Engineering
Year 2012 - 2013
What is Petroleum Engineering?
• An engineering discipline concerned with the activities (mainly subsurface) related to the production of hydrocarbon (crude oil and natural gas).
• It is the application of “all types of engineering” to the drilling and production of oil & gas
• It is considered mainly to be associated with the “UPSTREAM” sector of the oil & gas industry.
Introduction to Petroleum Engineering
Year 2012 - 2013
Surface & Subsurface Hydrocarbon Activities
Introduction to Petroleum Engineering
Year 2012 - 2013
Surface & Subsurface Hydrocarbon Activities
Introduction to Petroleum Engineering
Year 2012 - 2013
Upstream, Midstream & Downstream in the Oil Business
Introduction to Petroleum Engineering
Year 2012 - 2013
The Upstream of the Oil & Gas Industry
• Also called E & P (Exploration & production).
• It covers all the activities from the search of oil & gas resources to the field point of sale of the hydrocarbon.
• This includes: exploration activities, drilling, production, field processing and field storage of hydrocarbon.
• It is the most critical element of the industry as it has the biggest capital expenditures (> US$500 billion/year).
• It carries a lot of risk related to the huge uncertainties during the exploration phase and hazards during the drilling and production phases.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Midstream & downstream of the Oil & Gas Industry
• There is no agreement on the definition of midstream and downstream activities!!
• Generally, downstream activities mainly include gas distribution/sale, Petroleum Products distribution & storage and Petroleum products retail.
• Midstream is the bridge between oil & gas production and the end users. It involves mainly gathering & transportation of natural gas and crude oil.
• Gas Processing & Oil refining are considered by some as part of the downstream activities and by others as midstream activities.
• What is an integrated oil company and what is an independent oil company? Give examples?
Introduction to Petroleum Engineering
Year 2012 - 2013
What is the Role of the Petroleum Engineer?
• The Petroleum Engineer is involved in nearly all the activities of the Upstream oil and gas industry.
• He/She is a crucial member of a team responsible for maximising oil and gas recovery at minimum cost in a safe way and taking care of the environment. (who are the other team members?)
• The Petroleum Engineer may be a production engineer, a reservoir engineer, a drilling engineer or a process engineer.
Introduction to Petroleum Engineering
Year 2012 - 2013
Qualities of Petroleum Engineers?
Introduction to Petroleum Engineering
Year 2012 - 2013
Where Can We Find Oil and Gas?
Introduction to Petroleum Engineering
Year 2012 - 2013
Where Can We Find Oil and Gas?
Introduction to Petroleum Engineering
Year 2012 - 2013
Where Can We Find Oil and Gas?
Introduction to Petroleum Engineering
Year 2012 - 2013
The Oil & Gas Industry Worldwide
Introduction to Petroleum Engineering
Year 2012 - 2013
The Oil & Gas Industry worldwide
Year 2012 - 2013
Introduction to Petroleum Engineering
Offshore UK - North Sea Onshore UK – North East Hampshire
The Oil & Gas Industry worldwide
Year 2012 - 2013
Introduction to Petroleum Engineering
Onshore Canada - Shale Gas Onshore PNG
The Oil & Gas Industry worldwide
Year 2012 - 2013
Introduction to Petroleum Engineering
Kuwait – Pipeline ConstructionA Refinery in Kuwait
The Life Cycle of Oil and Gas Projects
Year 2012 - 2013
Introduction to Petroleum Engineering
The Life Cycle of Oil and Gas ProjectsLicence Award
Year 2012 - 2013
Introduction to Petroleum Engineering
The Life Cycle of Oil and Gas Projects1. Exploration Phase
• Exploration is the first stage for any company considering drilling in an area.
• Since there is no way to be absolutely certain where oil and gas reservoirs are located, companies use technology to pinpoint these potential resources with ever improving accuracy.
• Exploration operation usually start with geologic evaluation to identify underground structures where oil and/or gas may have accumulated.
• Understanding the geology of an area is essential to knowing if a petroleum system is present.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas Projects1. Exploration Phase
Year 2012 - 2013
Introduction to Petroleum Engineering
Seismic AcquisitionDrilling a geological Structures
The Life Cycle of Oil and Gas Projects2. Site Survey
• Federal, state, county, tribal and local permits are required to drill for (or produce) oil and gas.
• During the permit process, environmental, archaeological, surface and aquifer use issues should all be addressed.
• Operators are required to adhere to hundreds of regulations, and meet a wide range of standards and requirements before drilling begins.
• Right of way (RoW) corridors should be acquired in onshore locations. A ROW authorises the use of specific piece of land for specific facilities for specific period of time.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas Projects2. Site Survey
Introduction to Petroleum Engineering
Year 2012 - 2013
Drilling pad preparationExample of drilling permit process
The Life Cycle of Oil and Gas Projects3. Exploration Drilling
• Drilling a well is a highly coordinated event usually planned by the operating company and conducted by drilling contractors.
• Drilling is costly and therefore optimisation of time is essential.
• Continual drilling can provide greater integrity of the wellbore reducing the risk of problems that might occur.
• Time required for drilling a well is highly variable depending on the geology of the area, rig capability, depth and size of the hole, supply management, weather conditions, ……..
• Exploration drilling is very risky because of the lack of sufficient information before drilling the wells.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas Projects3. Exploration Drilling
Introduction to Petroleum Engineering
Year 2012 - 2013
Offshore Drilling RigOnshore Drilling Rig
The Life Cycle of Oil and Gas Projects3. Exploration Drilling
Introduction to Petroleum Engineering
Year 2012 - 2013
Drilling Project Structure
The Life Cycle of Oil and Gas Projects4. Appraisal Drilling
• The objective of appraisal drilling is to collect more information that help the operator make the decision to go ahead with field development or not.
• Also, it is important to collect data that help in efficient development of the field.
• Less riskier than exploration drilling because of the information collected from the exploration well
• Step-in or step-out approach
• May involve drilling one or more than one well depending on the size of the oil and gas accumulation.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas Projects4. Appraisal Drilling
Introduction to Petroleum Engineering
Year 2012 - 2013
Step-Out Appraisal
Step-in AppraisalAppraisal well
Discovery well
The Life Cycle of Oil and Gas Projects4. Field Development
• The most important and costly decision in the life cycle of the project. All internal and external approvals have to be obtained first.
• A Field Development Plan (FDP) document has to be produced detailing the forward plan and showing the project economics. A Final Investment Decision (FID) is to be taken by top management.
• The two main activities during field development are development drilling and facilities construction.
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas Projects5. Field Production
• The time when revenues start coming in
• It lasts for tens of years
• The main objective during this stage is to optimise production and identify any future investment opportunities within the field.
• Information collected during production is important to revise the FDP and all subsurface models
• Special attention is given to the environment and the communities
Introduction to Petroleum Engineering
Year 2012 - 2013
The Life Cycle of Oil and Gas ProjectsEnvironmental Impact
Introduction to Petroleum Engineering
Year 2012 - 2013
It is VERY IMPORTANT to minimise any adverse impact on the environment