Introduction To Petroleum Engineering

PTE200 – Fall 2022

Introduction

Dr. Nicolas Farah

e-mail: nicolas.farah@lau.edu.lb
Office: Bassil 202
1
Basis for Grading

Attendance 10 %

Project 30 %

Midterm 30 %

Final Exam 30 %
 Overall Job
• Petroleum engineers develop and apply new technology
to recover oil and gas from:
– Conventional and Unc. reservoirs (shale gas, oil shale,
tar sands)
– On/Offshore oil and gas fields
– in the most profitable and safe way.

• They must also devise new techniques to recover oil left

in the ground after application of conventional
producing techniques (EOR: Enhanced Oil Recovery)

3
 Education
• Petroleum engineers must have a bachelor’s degree in
engineering, preferably in petroleum engineering.

• However, a bachelor’s degree in

– mechanical or
– chemical engineering can work.

4
 Work Schedule
• Petroleum engineers typically work normal schedules.

• However, some work as many as 50 or 60 hours per

week when traveling, helping operation, and responding
to problems.

• When they are at a drilling site, it is common for these

engineers to work in a rotation: on duty for 84 hours
and then off duty for 84 hours.

5
 $$$$$ Pay $$$$$
The SPE (Society of Petroleum Engineers) reports that
the median base pay among its members in 2012 varied
by type of petroleum engineer:

Engineers — Drilling $212,123

Engineers — Completions $197,739
Engineers — Production $194,481
Engineers — Reservoir $187,780

6
 Learning Objectives
At the end of this Introduction you will be able to:

• Understand what petroleum Engineering entails.

• Describe how Petroleum is formed and its compositions.

• Describe fractional distillation processes of crude oil.

7
INTRODUCTION

8
 OUTLINE
• What is Petroleum Engineering?

• What Does Petroleum Mean?

• Generation of Petroleum

• Chemical Composition of Petroleum

• Petroleum Products

• Fractional Distillation

• The First Oil Wells

9
 What is Petroleum Engineering?

• An engineering discipline concerned with the

activities related to the production of
hydrocarbons, which can be either
– crude oil
– or natural gas.

• Considered as upstream sector of the oil and gas

industry, which are the activities of finding and
producing oil and gas.

10
 What is Petroleum Engineer?
• A petroleum engineer is involved in nearly all stages
of oil and gas field evaluation, development and
production.

• The goal of a petroleum engineer is to maximize

hydrocarbon recovery at a minimum cost while
reducing all associated environmental problems.

• Petroleum engineers are divided into several groups:

– Petroleum geologists
– Reservoir engineers
– Drilling engineers
– Production engineers
11
 What is Petroleum Engineer? (1)
Petroleum geologists find hydrocarbons by analysing
subsurface structures with geological and geophysical
methods .

Reservoir engineers work to optimize production of oil and

gas via proper well placement, production levels, and
enhanced oil recovery techniques.

Drilling engineers manage the technical aspects of drilling

exploratory, production and injection wells. It also include
mud engineer who manage the quality of drilling fluid.

Production engineers, including subsurface engineers

manage the interface between the reservoir and the well,
including perforations, downhole flow control; evaluate
artificial lift methods; and also select surface equipment that
separates the produced fluids (oil, gas, and water).
12
Where Does Petroleum Engineers
Work?
EMPLOYER:
• Government
• Oil Company.
• Service Company.
• Supporting Company.
• Academic
• Others

LOCATION:
• Office
• On land Oil Rig
• Offshore Oil Rig / Offshore Production Platform

13
 What Does Petroleum Mean?

• Petroleum literally means ‘rock oil’. The word comes

from the Greek word ‘petra’ (meaning ‘rock’) and the
Latin word ‘oleum’ (meaning ‘oil’).

• The word petrol is a shortened version of ‘petroleum’.

• Petroleum products are all the substances made from

petroleum.

14
 Crude Oil
• The oil we find underground is called crude oil.
– Crude oil is made of a mixture of different chemicals
called hydrocarbons. These were produced when tiny
plants and animals decayed under layers of sand and mud.

• Crude oil doesn't always look the same – it depends where it

comes from.
– Sometimes it is almost colourless, or it can be thick and
black. But crude oil usually looks like thin (brown).

• When it comes out of a well (especially an undersea well), the

crude oil is often mixed with gases, water and sand.

15
 What Made Oil?
• Tiny animals and plants that live in the
sea are called plankton.

• The plankton that lived in hundreds of

millions years ago made our crude oil.

• When they died they sank to the

bottom and slowly got buried by sand
and mud.

• Over millions of years, the dead animals and plants got buried deeper
and deeper.

• The heat and pressure gradually turned the mud into rock and
the dead animals and plants into oil and gas.

16
 What Made Oil? (1)

• Created by decomposing plants

and animals

• Plants die, fall to seafloor,

covered by sediment

• Millions of years, high pressure

and heat, creates oil and natural
gas

17
 Hydrocarbon
• Crude oil is a mixture of hydrocarbons.

• They are often chains of carbon atoms

with hydrogen attached.

• The longer chains have higher boiling

points, so they can be separated by
distillation.

• The simplest groups are the alkanes

and alkenes. They all end with 'ane'
and 'ene' respectively.

• The first bit of their name depends on meth = 1 carbon, eth = 2,

the number of carbon atoms. prop = 3, but = 4, pent = 5,
hex = 6

18
Chemical Composition of Oil & Gas

19
Chemical Composition of Petroleum
• Four types of hydrocarbon molecules, called the
hydrocarbon series, occur in each crude oil.

• The relative percentage of each hydrocarbon

series molecule varies from oil to oil, controlling
the chemical and physical properties of that oil.

• The hydrocarbons series includes:

– Paraffins
– Naphthenes
– Aromatics
– Non-hydrocarbon

20
Chemical Composition of Petroleum (1)
• The hydrocarbons series includes:
– Paraffins
– Naphthenes
– Aromatics
– Non-hydrocarbon

• Hydrocarbons that have only single bonds

between carbon atoms are called saturated.

• If they contain one or more double bonds, they

are unsaturated.

• The relative proportions of these compounds

determine the physical properties (density, viscosity,
pour point, etc) of petroleum
21
 Paraffins
• These are also known as aliphatic
hydrocarbons.

• They include the Alkanes, which

are saturated and have the general
formula CnH2n+2 (methane, ethane,
etc) and the Alkenes, which are
undersaturated and have the
general formula CnH2n or Alkynes
CnH2n-2.

• The carbon atoms are joined

together to form chains.

22
 Naphthenes
• Cycloalkanes contain carbon-hydrogen
bonds and carbon-carbon single bonds,
but this time the carbon atoms are
joined up in a ring. The smallest
cycloalkane is cyclopropane. (CnH2n)

• More than 20 carbons atoms

– Are referred as cycloparaffins and are
characterised by their carbon atoms
joined in such a way as to form a
ring.

• The heavier Molecular Weight fraction

of petroleum often contains quite
complex naphtene molecules with
two or more ring joined
23
 Aromatics
• In organic chemistry, the term aromaticity is used to describe
a cyclic (ring-shaped) molecule with a ring of resonance
bonds that exhibits more stability than other geometric or
connective arrangements with the same set of atoms.
• The basic building block of these HCs is the benzene ring.
• The aromatics structure occurs especially in the high
molecular weight fraction of petroleum.

24
 Non-hydrocarbon

• Compounds in this group

contain nitrogen, sulphur
and oxygen (NSO’s).

• Free nitrogen gas may be

generated during the
formation of petroleum.

• Sulphur organic compounds

are often foul smelling. The
best known is H2S.

• Oxygen compounds include

alcohols, ethers and organic
acids.
25
 °API Gravity

• Crude oils are compared and described

(classified) by density.

• The most commonly used density scale is °API

gravity or API gravity.

• API stands for the American Petroleum

Institute, based in Washington, DC.
– It standardizes petroleum industry equipment and
procedures.

26
 °API Gravity (1)

𝟏𝟒𝟏. 𝟓
°𝑨𝑷𝑰 𝐠𝐫𝐚𝐯𝐢𝐭𝐲 = − 𝟏𝟑𝟏. 𝟓
𝒅𝒆𝒏𝒔𝒊𝒕𝒚 𝒂𝒕 𝟔𝟎°𝑭

• Freshwater has an °API gravity of 10.

• The °API gravities of crude oils vary from 5 to 55. Average

density (weight) crude oils are 25 to 35.

27
 °API Gravity (2)

• Light crude oil is defined as having an API gravity

higher than 31.1 °API

• Medium oil is defined as having an API gravity between

22.3 °API and 31.1 °API.

• Heavy oil is defined as having an API gravity below 22.3

°API.

28
Types of Crude Oil:
Heavy, Light, Sweet, Sour
 Types of Crude Oil

There are hundreds of different grades of crude oil that

come out of the ground.

Most commonly, the crude will be described as light or

heavy and sweet or sour.

30
Types of Crude Oil

31
 Sulfur
• Sulfur is an undesirable impurity in fossil fuels
such as crude oil, natural gas, and coal.

• When sulfur is burned, it forms sulfur dioxide, a gas

that pollutes the air and forms acid rain.

• During the refining process:

– the refiner must remove excessive sulfur as the
crude oil is being processed.

– If not, the sulfur will harm some of the

chemical equipment in the refinery.
32
 Sulfur (1)
• Crude oils are classified as sweet and sour on the basis
of their sulfur content.

• Sweet crudes have less than 1% sulfur by weight,

whereas sour crudes have more than 1% sulfur.

• The refiner usually pays several US dollars per barrel

less for sour crude (more sulfur).

• In general, heavy oils tend to be sour, whereas light

oils tend to be sweet.

33
 Sulfur (2)
• In general, heavy oils tend to be sour, whereas
light oils tend to be sweet.

• At a refinery:
– low-sulfur crude has 0 to 0.6% sulfur,
– intermediate-sulfur crude has 0.6 to 1.7% sulfur,
– and high-sulfur crude has above 1.7% sulfur.

• Most of the sulfur in crude oil occurs bonded to

carbon atoms.

34
 Benchmark of Crude Oil
• A benchmark crude oil is a standard for a country against
which other crude oils are compared, and prices are set.

• In the United States,

– West Texas Intermediate (WTI) is 38 to 40 °API gravity
and 0.3% S,
– and West Texas Sour, a secondary benchmark, is 33 °API
gravity and 1.6% S.

• Brent, the benchmark crude oil for the North Sea is very
similar to WTI and is 38 °API gravity and 0.2% S.

• Dubai is the benchmark crude oil for the Middle East at 31

°API gravity and 2% S.

35
 Pour Point

• All crude oils contain some paraffin

molecules.

• If the paraffin molecules are 18 carbon atoms or

longer in length,
– they are waxes that are solid at surface temperature.

• A crude oil that contains a significant amount of

wax is called a waxy crude oil.

36
 Pour Point (1)

• In the subsurface reservoir where it is very hot,

waxy crude oil occurs as a liquid.

• As the oil comes up the well, it cools, and the

waxes can solidify.

• This can block the tubing in the well and

flowlines on the surface.
– The well then has to be shut in for a workover to
clean out the wax.
37
 Pour Point (2)

• The amount of wax in crude oil is indicated

by the pour point of the oil.

• A sample of the oil is heated in the laboratory. It

is then poured from a container as it is being
cooled.
– The lowest temperature at which the oil will still pour
before it solidifies is called the pour point.
– Crude oil pour points range from +125° to −75°F
(+52° to −59°C). Higher pour points reflect higher
wax content.

38
Properties

39
 Properties / Color
• The color of crude oil ranges from colorless through
greenish-yellow, reddish, and brown to black.

• In general, the darker the crude oil, the lower the °API
gravity.
– heavy oil –> low °API, (below 22 °API)
– volatile –> high API gravity (higher than 31 °API)

• The smell varies from:

– gasoline (sweet crude)
– to foul (sour crude)
– to fruity (aromatic crude).

• Crude oil has a calorific heat value of 18,300 to 19,500

Btu/lb.
40
 Fractional Distillation
• Fractional distillation splits
the crude oil into simpler
mixtures called fractions. The
different fractions are
taken out of the still at
different levels.

• This happens in a distillation

tower (which we shorten to
still).

• The crude oil is heated in

a furnace to about 370°C
and is pumped into the
bottom of a distillation tower.

• Most of the hydrocarbons are

gaseous, though the very
thick ones are still a liquid
even at this temperature.
42
 Fractional Distillation Contd.
• The tower is like a giant
heat exchanger.

• The temperature falls to

20°C by the time the
vapours reach the top.

• The vapours condense as

they rise up the tower.

• The heavier ones (with

higher boiling points)
condense first.

• The thinner get further

up the tower before they
condense. And the gases
pass out of the top.
43
 Where do Product come out of a
Still?

• A distillation tower splits crude oil into separate

fractions.

• Each fraction is a mix of hydrocarbons.

➢ Each fraction has its own range of boiling points and
comes off at a different level in the tower.

• In reality, a single tower could not cover the full range of

temperatures needed to split up the heavier fractions.

44
 Distillation Process Table
The table shows the names and uses of the fractions that
come from the distillation process. It also shows the ranges
of hydrocarbons in each fraction.

Fraction Carbons BP °C Uses

• Fuel in refinery
Gases 1 to 4 < 40
• Bottled and sold as LPG
• Blended into petrols
Napthas 5 to 10 25 – 175
• Feedstock for making chemicals
Kerosene 10 to 16 150 – 260 • Aviation fuel
Light gas oils 14 to 50 235 – 360 • Diesel fuel production
Heavy gas oils 20 to 70 330 – 380 • Feedstock for catalytic cracker
• Grease for lubrication
Lubricants > 60 340 – 575 • Fuel additives
• Feedstock for catalytic cracker
Fuel oil > 70 > 490 • Fuel oil (power stations and ships)
Bitumen > 80 >580 • Road and roof surfaces

45
46
RON, MON and AKI

47
 Research Octane Number (RON)

• RON is the most common type of octane rating.

• RON is determined by running the fuel in a test

engine at 600 rpm,

➢and comparing the results with those for

mixtures of iso-octane C8H18 (100 oct) and n-
heptane C7H16 (0 oct).

48
 Motor Octane Number (MON)
• Another type of octane rating, called MON, is determined at
900 rpm engine speed instead of the 600 rpm for RON.

• MON testing uses a similar test engine to that used in RON

testing, but with a preheated fuel mixture, higher engine
speed

• Depending on the composition of the fuel, the MON of a

modern pump gasoline will be about 8 to 12 octane lower
than the RON, but there is no direct link between RON and
MON.

• Pump gasoline specifications typically require both a

minimum RON and a minimum MON.
49
 Anti-Knock Index (AKI) or (R+M)/2
• In most countries, including Australia, New Zealand
and all of those in Europe, the "headline" octane
rating shown on the pump is the RON,

• But in Canada, the United States, Brazil, and some

other countries, the headline number is the average
of the RON and the MON,

• It is called the Anti-Knock Index (AKI), and often

written on pumps as (R+M)/2.

• It may also sometimes be called the Posted Octane

Number (PON).
50
Difference Between RON, MON and
AKI
• Because of the 8 to 12 octane number difference
between RON and MON noted above,

➢ The AKI shown in Canada and the United States is

4 to 6 octane numbers lower than elsewhere in the
world for the same fuel.

• This difference between RON and MON is known as

the fuel's Sensitivity, and is not typically published for
those countries that use the Anti-Knock Index labelling
system.

51
Generation of Petroleum

52
 Generation of Petroleum
Ancient Earth
What the Earth looked like 150 million years ago.
© Ron Blakey, Arizona Flagstaff •Most of the Source Rocks
that gave rise to our
present day oil and gas
fields were formed in the
middle of the Mesozoic Era

•During mid-Mesozoic times

around 150 million years ago,
conditions were just right to
build up huge thicknesses of
Ancient Earth Black Shale source rocks

The world’s main oil deposits all formed in warm shallow seas where
plankton bloomed but bottom waters were deoxygenated
53
 Oil & Gas Formation
• It is formed from the
accumulation of decomposition
of plants and marine animals
which died million years ago
and trapped beneath the
ground under high pressure
and temperatures.
• Oil & gas compound consist of
Carbon & Hydrogen Atom,
that’s why it is called
Dead organism get HYDROCARBON.
trapped underground • Crude Oil is liquid while Natural
Gas is gaseous hydrocarbon at
room temperature.
High Temperature & Pressure
transform buried dead
organism into oil & gas

Oil & gas is also called PETROLEUM

which means “Rock Oil” in Latin word
 Petroleum System

• Oil and gas fields are situated in sedimentary basins

deposited during to many million years

• Exploration technique and methodologies allow:

• To analyze these complex phenomena based on

studying all known indications of hydrocarbons, in
relation to historical events of the geology

• To manage the interplay of geological risk, the

economic evaluation and investment decision

55
 Petroleum Geology

When animals and The mechanism of

plants die, they These residues are subsidence causes The first stage in
leave an organic mixed with sediments to be the decomposition
residue broken sediments (sand, entrained to great gives rise to
down by bacteria clay, salt, etc..) depths KEROGEN

56
 Generation of Petroleum
• Petroleum generation takes place in source rocks,
which may be defined as organic rich, fine grained
sediments deposited.
➢ Most commonly, petroleum source rocks containing a
minimum of 0.3% to 0.5% by weight of organic
matter.

• Preservation of the organic matter is the key to the

development of potential source rocks.

• The environment of source rock deposition is therefore

characterised by a relatively deep, un-agitated (low energy)
body of water with an oxygen starved bottom

57
 Generation of Petroleum (1)
• The non-hydrocarbon organic matter (kerogen)
is the major source of oil and gas deposits.

• The generation of hydrocarbons from the source

material depends primarily on the temperature to
which the organic material is subjected.

• Hydrocarbon generation appears to be negligible at

temperatures less than 150oF (65oC) in the
subsurface and reaches a maximum within the
range of 225o to 350oF (107o and 176oC), the
“hydrocarbon window”.
58
 Generation of Petroleum (2)
• Increasing temperatures convert the heavy
hydrocarbons into lighter ones and ultimately to
gas.

• However, at temperatures above 500oF (260oC),

the organic material is carbonized and destroyed
as a source material.

• Consequently, if source beds become too deeply buried

no hydrocarbons will be produced.

59
 Generation of Petroleum Contd. (3)
As Black Shale is buried, it is heated.
Organic matter is first changed by the
increase in temperature into kerogen,
Kerogen
which is a solid form of hydrocarbon

Around 90°C, it is changed into a liquid

Oil
state, which we call oil

Gas Around 150°C, it is changed into a gas

www.oilandgasgeology.com/oil_gas_window.jpg

This is natural chemical ‘cracking’ of the hydrocarbons – where the

initially large molecules are broken into progressively smaller molecules by
the increase in temperature – much the same as long chain hydrocarbons
can be ‘cracked’ commercially. 60
 Generation of Petroleum Contd. (4)
As Black Shale is buried, it is heated.
Organic matter is first changed by the
increase in temperature into kerogen,
Kerogen
which is a solid form of hydrocarbon

Around 90°C, it is changed into a liquid

Oil
state, which we call oil

Gas Around 150°C, it is changed into a gas

www.oilandgasgeology.com/oil_gas_window.jpg

A rock (black shale) that has produced oil and gas in this way is
known as a Source Rock
61
Conversion of Kerogen to Oil & Gas
• Anaerobic bacteria convert lipids (fat, oil and waxes)
into a waxy substance called kerogen.

• During burial of sediments, the increase in temperature

results in a progressive change in the composition of
kerogen.

• Three successive stages are distinguished and referred as

diagenesis, catagenesis and metagenesis.

• The main trend is a continuous increase in the

carbon content of kerogen.

62
 Diagenesis
• ‘’Diagenesis is defined as the chemical reactions that
occurred in the first few thousand years after burial at
temperatures less than 50◦C.’’

• During diagenesis: oxygen, nitrogen and sulfur are

removed from the organic matter

• Source rocks are considered as immature at this

stage.

63
 Catagenesis
• ‘’The reactions that occur between 60◦C and 150◦C

• During catagenesis, the organic compounds are exposed

to diverse thermal degradation reactions that include
double bonds reduction, cracking reactions.

• A significant decrease in hydrogen content and in

the H/C ratio takes place due to the generation and
release of hydrocarbons.

• This is the main zone of oil generation and the beginning

of the cracking phase which produces wet gas with a
rapidly increasing proportion of methane.
64
 Metagenesis
• Begins at temperature exceeding 150oC.

• At this stage, only dry gas is generated.

• If the temperature exceed 250oC

– Organic material will be destroyed

(carbonized)

– and the presence of graphite

65
66
 Kerogen

• The color of kerogen changes as it

matures

Colour Maturity Level Dominant HC

Yellow Immature Biogenic methane
Orange Mature Oil
Brown Mature Wet gas
Black Metamorphosed Dry gas

67
General scheme of kerogen evolution

Algae
Hydrogen
Index Tree, Oxygen
wood Index

• Van Krevelen diagram showing types of kerogen and pathways for

generation of methane and elimination of carbon dioxide and water
during coalification / used to assess the origin and maturity
of kerogen and pertroleum (composition of the kerogen).

• Liptinite corresponds to types I and II kerogen, vitrinite to type III, and

inertinite to type IV. 68
Migration

• Hot oil and gas is less dense than

the source rock in which it occurs

• Oil and gas migrate upwards up

through the rock in much the same
way that the air bubbles of an
underwater diver rise to the surface

Rising oil

• The rising oil and gas eventually gets

trapped in pockets in the rock called
reservoirs 69
 Primary Migration
• Primary migration takes place within the source rock
after fracturing due to pressure increase that happens
due to the generation of oil and gas.

• Since gases and liquids are less dense than solids,

they take up more volume causing pressure increase.

• So, it is important for a productive source rock to be

easily fractured to let the fluids move through it.

70
 Primary Migration (1)
• During primary migration, gas and oil travel together
as a single liquid phase due to the high pressures in the
source rock as these pressures usually become higher
than the bubble point pressure at which gases start to be
liberated from liquid.

• After migration the pressure decreases and the fractures

and pores close.

• Finally, petroleum migrates out of the source rock,

pressures decline, especially if the petroleum migrates
vertically.
71
 Secondary Migration
• Secondary migration is the movement of petroleum
outside of the source rock and into a reservoir bed.

• During secondary migration, the gas and oil separate

with the gas traveling ahead of oil.

• In most cases, differences in permeability between

adjacent stratigraphic layers inhibit (prevent) migration.

72
 Primary / Secondary Migration

Rock reservoir
In order for a deposit to form, the hydrocarbons need to be trapped under the seal,
in the pores and fissures of a rock reservoir where they can accumulate.

Cap rock
Impermeable layer,
referred as a seal

The organic
molecules of the
Kerogen are
entrapped within a
clayey rock known
as the Source
Rock 73
 Requirements for Favorable
Petroleum Accumulations

• High organic content of the source rock

• Rapid burial
• Enough overburden pressure that helps in maturation
process
• Movement easiness from source rock to reservoir rock
• Porous and permeable reservoir rock
• Presence of accumulation traps
– structural or stratigraphic
• Cap rocks presence to prevent the escape of petroleum
fluids

74
Oil & Gas Around the
World

75
Birth of Modern Oil & Gas Industry

• In 1859, Colonel Edwin L. Drake

discovered oil in Titusville,
Pennsylvania by drilling to 21m.

• This discovery marked the birth of

the modern petroleum industry in
the United States.

• The invention of the gasoline engine

(1885) and diesel engine (1892)
boosted the refineries industry to
Drake Well produce gasoline and diesel fuel.
76
76
Oil & Gas Industry Characteristics

• Large investment, can reach billion

of US$,

• High risk in all aspects (people

safety, environment, investment,
reputation),

• High reward/return,

• Long term business from initial

investment until revenue generated,
even longer until break even point
(can be more than 20 years),

• Complex operation.
77
77
 The First Oil Well
• The modern oil industry
dates back about 160 years.

• The world’s first oil well was

drilled in Titusville,
Pennsylvania in 1859.
– Oil at 21 metres below ground
and produced 3,000 liters of
oil a day. (stopped in 1861)
• Known as the Drake Well, after "Colonel" Edwin Drake,
the man responsible for the well, it began an international
search for petroleum, and in many ways eventually
changed the way we live.
78
Oil Derrick

• Oil derrick in
Okemah,
Oklahoma, 1922.

79
First Oil / Gas Well in North America

80
 Some Records

• First oil well in North America

– 1859: Titusville, Pennsylvania. The Drake well was
drilled to 69.5 ft (20 m) by William “Uncle Billy”
Smith.

• First gas well in North America

– 1825: Fredonia, New York. The well was drilled by
William Aaron Hart to 27 ft. The gas reservoir rock
was the fractured, Devonian age Dunkirk black
shale.

81
Largest Oil / Gas Field

82
 Some Records (1)

• Largest Oil field:

– Ghawar, Saudi Arabia, ~80 billion bbl
recoverable oil
– Measuring 280 by 30 km
– Operated by Saudi Aramco
– Discovered: 1948
– Start production: 1951
– Peak prod: 2005
– Oil: 5 Million barrels/day
– Gas: 2 Billion cft/day 83
 Some Records (2)

• Largest Gas field:

– North Dome in Qatar and
South Pars in Iran with 1,200
trillion cft of natural gas
– Area of 9,700 square km
– GIP: estimated 1,800 Tcft
– 50 million barrels of NGC*

• *Natural-gas condensate
– It is a mixture of HC liquids that are
present as gaseous components will
condense to a liquid state if the
temperature is reduced to below the
HC dew point temperature at a set 84
pressure.
Deepest Well

85
 Some Records (3)

• Deepest well drilled for gas or oil

– 31,441 ft.: Bertha Rogers No. 1. Washita
County, Oklahoma, in 1974 – it was a dry hole.

• Deepest well ever drilled

– 40,230 ft.: The Kola Super deep Borehole, a
scientific well drilled by Russia with a turbine
motor in the Kola Peninsula between 1970
and 1989.

86
 How Long Will The World’s Oil Last?

• Oil took millions of years to form and the oil supplies

in the ground won't last for ever.

• The oil fields already discovered hold over 1 trillion

barrels of oil (1,000,000,000,000).

• Although we are using oil quite quickly, the

reserves go up every year.
– This is because more oil is discovered and new
ways are found of extracting oil that couldn't be
got out before (Unconventional reservoirs).
87
How Long Will The World’s Oil Last? (1)
• Even so, our oil won't last for ever.
– At the moment, the world uses about
26,000,000,000 barrels every year.
– At this rate, there should be enough oil for
at least another 40 – 50 years.

• It is likely that more oil will be discovered in that

time.

• Oil companies are always searching for new oil fields

and there are still lots more deep sea areas to
explore
88
OPEC

89
 Main Producers - OPEC

• Organization of the Petroleum Exporting Countries

(OPEC) is a group of 13 countries that produce 36% of the
world’s oil, or 32 million barrels of oil per day.

• The biggest producer is Saudi Arabia, but Iran, United Arab

Emirates, Kuwait and Venezuela are also major suppliers
90
 Main Producers - OPEC

• Venezuela, Ecuador, Gabon, Angola, Nigeria,

Equatorial Guinea, Algeria, Libya, Saudi Arabia, Iraq,
Iran, UAE, Qatar, Kuwait.

91
86 Million bbl/day ; 26 Billion bbl every year.
Crude Oil Around the World

92
World Proven Oil Reserves

93
Producers and
Producers
Consumers of
Consumers
Oil

*
94
US Energy Information Administration
 Natural Gas Around the World
• Total: 187 Tcm / 6630 Tcf
• Russia: 48 Tcm
• Iran: 34 Tcm
• Qatar: 24 Tcm

95
 NOC National Oil Companies
• ADNOC: Abu Dhabi National Oil Company • Petrobras (Brazil)
• CNOOC: China National Offshore Oil • PetroEcuador (Ecuador)
Company • Petronas (Malaysia)
• PetroChina: China National Petroleum • Qatar Petroleum (Qatar)
• EcoPetrol: Empresa Colombiana de Petroleos • Statoil (Norway)
S.A. • Sonatrach (Algeria)
• EGPC: Egypt General Petroleum • Uzbekneftgaz (Uzbekistan)
• Emirates National Oil Company (Dubai) • Sinopec (Cina)
• ENI (Italy) • Sonangol (Angola)
• Gazprom (Russia) • Petroleum Development Oman
• GEPetrol (Equatorial Guinea) (Oman)
• Iraq National Oil Company (Iraq) • PKN Orlen (Poland)
• KazMunayGas (Kazakhstan) • Rosneft (Russia)
• Kuwait Petroleum Corporation (Kuwait) • Petroleos del Peru (Peru)
• NIOC: National Iranian Oil Company • Petron (Philippines)
• National Oil Corporation of Kenya (Kenya) •
• National Oil Corporation (Libya)
• Nigerian National Petroleum Corporation
(Nigeria)
• Oil and Natural Gas Corporation (India)
• Pertamina (Indonesia)
• Vietnam National Oil and Gas Group (Petro
Vietnam) 96
Principal O&G Producers

97
 History of Crude Oil Price
Source: Platts December 2013

98
Gas Price on US Market
Hurricane Bbl Peak
Katerina Oil Economic crisis

99
Energy Demand

100
Why?

101
Growing population
102
 Growing population

7.2 billion (2014)

9.6 billion (2050)

Source: United Nations

103
alexmillos/shutterstock
104
 Vehicles in the World

450 China

350
EU
Million Vehicles

US
250

150 India

50 Brazi
l
2000 2010 2020 2030
2035

Source: AIE WEO 2012

105
Energy Demand

+50%
OECD:
Organization for
Economic
Cooperation and
2050 Development

106
Energy Use

107
Consumption by Fuel

108
 vas abii/Shutterstock

Geo-grafika/Shutt erst ock

Source of
Energy
Oil, Natural Gas
and Coal
nik kytok/Shutterstock

109