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Oil and Gas Production and Exploration, Part I

Presented by:

Steven Marzuola

American Translators Association52nd Annual Conference

Boston, October 26, 2011

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Introduction

Dope, Joints, TrippingInternal FlushStrippersCasing, Tubing, LinerAPI - American Petroleum Institute

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Why oil?

Refined products 45 megajoules/ kg

One gallon carries one airline passenger 45 milesCoal: 24 megajoules per kilogramClub sandwich: 1.3 megajoules

Convenience of liquid fuelLarge amount of power in small volume (“Energy density”)

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Life of an Oilfield

Reservoir formationDiscovery and explorationDrillingPrimary productionSecond production, interventionsAbandonment

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Early oil discoveriesUsually guided by surface seepage. Lake Maracaibo, Caspian Sea, western PennsylvaniaUsed by ships, seeking tar for repairs.Oil was usually a nuisance encountered when drilling water wellsResearch in mid 1800’s, search to replace whale oil used in lampsFirst rotary drilled well - 1859, Titusville, PA

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Blowouts

In movies, often portrayed as success.Today, a blowout is a huge and expensive mistake.

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Historical practices

On land, in the USA: Surface owner owns everything to the center of the earth. Often led to inefficiencies, legal battles.

Today, mineral rights on most property are bought and sold separately from the surface land. Field or reservoir usually managed as a single unit.

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Congestion

Spindletop, Texas, 1902

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Requirements of a Reservoir

1. Source or Generator rock2. Reservoir3. Seal or cap rock4. Structure, hydrocarbons trap5. Timing6. Maturation7. Migration

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Exploration aided by geology

Surface features AnticlinesFaults, Salt domesPresence of iron

Subsurface surveysGravimeter, MagnetometerSeismic - 2D, 3D

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Anticlines Salt dome

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Structural trap

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Gravimeter

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Seismic surveying

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3D Seismic images

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Rig = factory

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Today’s drilling

Most wells drilled using rotary drillingSteel drill pipe comes in 30-foot sections that are threaded on both ends.Each section of drill pipe is called a joint. After drilling 30 feet, the kelly must be raised and another joint of pipe added below the kelly. This is called making a connection.

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Drill string components

Typical rotary drillingBottom Hole Assembly (BHA)

Additional components: mud motors, LWD / MWD tools,

steerable subs

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Drill bits

Diamond bits

Tricone rock bit Tungsten carbide inserts

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Surface components

• Kelly, kelly bushing, swivel, hose

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Pipehandling tools

Drill pipe slips Tongs

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Top Drive

AdvantagesDrill with “triples”

Reduced connection time

Quickly restore pressure control while tripping out

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Pressure control

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Flow of drilling mud

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Hydrostatic pressure

Pressure is proportional to:Height (depth) of fluid columnDensity (i.e. lbs/gallon)

Mud column must counterbalance formation pressureDrilling mud 1.5 - 2.5 times more dense than water

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Mud system components

Shale shakers

Desanders and desilters (hydrocyclones)

Degassers

Centrifuges

Mud agitators

Cuttings washers

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Water-based vs. oil-based muds

Water most widely used, but can cause “skin” damage, contaminate formation

In response, oil-based muds were developed

Adverse effects on rubber products, (seals, pump parts), environmental concern

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Modern improvements

Major changes in past 20 years are:Computers and software => 3D seismic

Top drive - all offshore rigs, big/deep onshore

MWD - Measure While Drilling technology

Mud motors

Directional drilling => horizontal wells

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Horizontal drilling

Multilateral completionsMultiple exit points from main well bore

Increased length of hole exposed to productive formations

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Completions

Most wells lined with steel casing. Purposes:

Protect from cave-insProtect surface formations, water supplyIsolate producing formationsPrevent blowouts

Innermost pipe is “tubing”, removable, to isolate flow from casing

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Casing and wellhead

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Casing and tubing connections

Non-upset

www.glossary.oilfield.slb.com

External upset

IF = “internal flush”

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Wellheads/Christmas trees

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Flange connection

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Separationequipment

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Stages of production

Primary recovery - natural flow

Secondary recovery - mechanical pumping, gas lift

Tertiary or Enhanced Oil Recovery - Gas injection, thermal, chemical

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Workover and well servicing

Together known as “intervention”

Workover rig similar to drilling. Performs acidizing, fracturing stimulation, cementing, deeper drilling, recompletion to a different zone, sidetracking

Well servicing - wireline, rod pulling units, flexible tubing

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Well servicing rig

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Flexible tubing rig

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Pumping

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TypicalSubsurface Pump

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Other methods

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Flowlines and Pipelines

Flowlines link individual wells or groups to a processing facility.

Gas / oil / water separation

Metering

Sand removal

Pipelines lead from field / process facility, ultimately to refinery

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“Pigs”

Dumb pigs: Cleaning, water displacement, chemical treatmentSmart pigs: Measure internal diameter, inspect for cracking, corrosion

Magnetic flux, X-ray, ultrasonic, video

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Peak Oil, or Hubbert’s PeakM. King Hubbert - Shell geophysicist

Theory: production tends to follow bell-shaped curve. Can be predicted in advance.

Production increases early due to discoveries and new infrastructure. Later declines due to depletion.

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47Source: http://www.theoildrum.com/node/8310

Peak Oil (cont.)

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Peak Oil (cont.)

In 1956, Hubbert predicted peak of USA production late 1960s - early 1970s.Controversial, but proven right by 1976. Actual peak was in 1970.Is it applicable to world production?Rapidly growing demand in China, IndiaNew technologies, increased depletion ratesWhat is the effect of higher real prices?

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Historical oil production

Source: http://wikipedia.org

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Steven Marzuola281-381-9337

www.techlanguage.com

© 2011 Steven Marzuola

Houston Interpreters and Translators Association

American Translators Association