Package 1Package 1Origin, Deposition Mechanisms, Exploration Origin, Deposition Mechanisms, Exploration

and Occurence of Crude Oil and Natural Gasand Occurence of Crude Oil and Natural GasReservoir Engineering, Forecasts, Deep Reservoir Engineering, Forecasts, Deep

Drilling and Production EngineeringDrilling and Production EngineeringComposition and Classification of Crude Oil Composition and Classification of Crude Oil

and Natural Gasand Natural GasTransportation and Storage of Crude Oil and Transportation and Storage of Crude Oil and

Natural GaNatural Gass

DefinitionDefinition

Crude oil is the name given to all organic Crude oil is the name given to all organic compounds which are liquid under reservoir compounds which are liquid under reservoir conditions.conditions.

Petroleum composition:Petroleum composition:- hydrocarbons- hydrocarbons

-S, O, N, P compounds-S, O, N, P compounds

-metal compounds (V, Ni, Cu, Co, Mo, Pb, Cr, As)-metal compounds (V, Ni, Cu, Co, Mo, Pb, Cr, As)

HH22S and waterS and water

Elementary composition: C 79,5-88,5%, H 10-15,5%Elementary composition: C 79,5-88,5%, H 10-15,5%

Constituents of petroleumConstituents of petroleum

AlkanesAlkanes

NaphtenesNaphtenes

AromaticsAromatics

Classification of crude oilsClassification of crude oils

Paraffin basedParaffin based -found in deeper zones -found in deeper zones

Naphtene or asphalt basedNaphtene or asphalt based –found in –found in upper level upper level

Mixed-basedMixed-based –found in middle zones –found in middle zones

Composition on worldwide basis:Composition on worldwide basis:

~30% paraffins, 40% naphtenes, 25% ~30% paraffins, 40% naphtenes, 25% aromaticsaromatics

Natural GasNatural Gas

Dry and wet natural gasesDry and wet natural gases

Components: methane, higher Components: methane, higher hydrocarbons, nitrogen, carbondioxid, hydrocarbons, nitrogen, carbondioxid, hydrogen sulfide, heliumhydrogen sulfide, helium

Associated gas, closely connected to Associated gas, closely connected to crude oilcrude oil

Natural gas---non-associatedNatural gas---non-associated

Formation of crude oilFormation of crude oilpredominantly of organic originpredominantly of organic origin

Petroleum source rock-deposits in sedimentary basin contain Petroleum source rock-deposits in sedimentary basin contain organic residues of terrestrial, limnic, fluvial and marine origin-organic residues of terrestrial, limnic, fluvial and marine origin-conversion under anaerobic conditions-resulting in bitumen or conversion under anaerobic conditions-resulting in bitumen or kerogenkerogenSource rock should contain 0,5% TOCSource rock should contain 0,5% TOC

Anoxic zones: nonmarine lakess (lake Tanganyika), closed inland seas Anoxic zones: nonmarine lakess (lake Tanganyika), closed inland seas with positive water balance (Black Sea deep zones), ascent of marine with positive water balance (Black Sea deep zones), ascent of marine current from greater depths (Benguela current Africa, Humboldt current, current from greater depths (Benguela current Africa, Humboldt current, Peru), open ocean (global climatic warming with large transgressions in Peru), open ocean (global climatic warming with large transgressions in Jurassic and middle Cretaceous period)Jurassic and middle Cretaceous period)

Crude oil formation from phytoplankton, bacteria-in the Silurian—Crude oil formation from phytoplankton, bacteria-in the Silurian—Devonian periodDevonian periodFormation: organic material in sapropels is decomposed, decayed Formation: organic material in sapropels is decomposed, decayed by anaerobic bacteria, organic material adsorbed onto fine clay by anaerobic bacteria, organic material adsorbed onto fine clay particles, which sink to the sea floor. Sedimentation condition in particles, which sink to the sea floor. Sedimentation condition in Pliocene were similar to that of novadays in the offshore regions of Pliocene were similar to that of novadays in the offshore regions of the sea.the sea.

Hydrocarbon formationHydrocarbon formationDiagenesis, Catagenesis, Diagenesis, Catagenesis,

(at depths of 1000-5000 m and 175 (at depths of 1000-5000 m and 175 ooC) MetagenesisC) Metagenesis

Migration of oil dropletsMigration of oil dropletsfrom argillaceous source rocks into porous reservoir rocksfrom argillaceous source rocks into porous reservoir rocks

Lateral migration through capillary pathsLateral migration through capillary paths

Vertical migration- fine fissuresVertical migration- fine fissures

During migration occurs separation from water, During migration occurs separation from water, gravitational separation: gas-oil-watergravitational separation: gas-oil-water

Chemical degradation leads to smaller and more Chemical degradation leads to smaller and more stable compoundsstable compounds

Maturation process concludes with the Maturation process concludes with the conversion to methaneconversion to methane

Reservoir rocks and trap structuresReservoir rocks and trap structuresFluvial sand, Beach and barrier sand, Wind-blown sand, Marine platform sand

Deep water sand, Reefs, Reef limestone debris, Chalk

OccurencesOccurences

Production and reservesProduction and reserves

Production and reservesProduction and reserves

Oil explorationOil explorationpreliminary exploration, exploratory wellspreliminary exploration, exploratory wells

Geological explorationGeological explorationSatellite imagesSatellite images

Examination of rock samplesExamination of rock samplesStratigraphic investigationsStratigraphic investigations

Geophysical investigationGeophysical investigationMagnetic measurementsMagnetic measurements

Gravimetric measurementsGravimetric measurementsGeoelectric measurementsGeoelectric measurements

Seismic methodsSeismic methods Refraction Reflection methods 3D methodRefraction Reflection methods 3D method

Geochemical investigationGeochemical investigationExploratory drillingExploratory drilling

The entire exploration-to-production The entire exploration-to-production chain was reviewed and adapted to chain was reviewed and adapted to

greater water depths:greater water depths:

1. The development and use of (3D) seismic was intensified.

2. Innovative drilling and production structures were designed. Because these structures could not be installed on the seabed at such great depths, FPSO (Floating Production Storage and Offloading) and TLP (Tension Leg Platform) systems were developed.

3. Efforts were made to come up with new materials for the flexibles (able to withstand high pressures at great water depths, etc.).

4. Horizontal and multibranch wells came into general use, reducing the number of wells.

Estimated proved crude oil reserves in the world Estimated proved crude oil reserves in the world (A)(A)

Liquid petroleum consumed in the United States during the Liquid petroleum consumed in the United States during the

past 50 years came from three sourcespast 50 years came from three sources

MeasurementMeasurement MeasureMeasure

Produced-to-dateProduced-to-date 873 Gb873 Gb

ReservesReserves 928928

Discovered-to-dateDiscovered-to-date 18011801

Yet-to-FindYet-to-Find 149149

Yet-to-ProduceYet-to-Produce 10771077

Ultimate recoveryUltimate recovery 19501950

Current consumption (2001)Current consumption (2001) 22 Gb/y22 Gb/y

Current discovery rate Current discovery rate 6 Gb/y6 Gb/y

Current depletion rate (ann. Current depletion rate (ann. prod. as % of Yet-to-prod. as % of Yet-to-Produce)Produce)

2%2%

Main parameters for Conventional oilMain parameters for Conventional oil

Peak Peak OilOil. It truly is a turning point for mankind. It truly is a turning point for mankind

Conventional Conventional oiloil - and that will be defined - provides most of the - and that will be defined - provides most of the oiloil produced today, produced today, and is responsible for about 95% all and is responsible for about 95% all oiloil that has been produced so far. that has been produced so far. It will continue to dominate supply for a long time to come. It is what matters most. It will continue to dominate supply for a long time to come. It is what matters most. Its discovery peaked in the 1960s. We now find one barrel for every four we Its discovery peaked in the 1960s. We now find one barrel for every four we consume. consume. Middle East share of production is set to rise. The rest of the Middle East share of production is set to rise. The rest of the worldworld peaked in 1997, peaked in 1997, and is therefore in terminal decline. and is therefore in terminal decline. Non-conventional Non-conventional oiloil delays peak only a few years, but will ameliorate the delays peak only a few years, but will ameliorate the subsequent decline. subsequent decline. Gas, which is less depleted than Gas, which is less depleted than oiloil, will likely peak around 2020. , will likely peak around 2020. Capacity limits were breached late in 2000, causing prices to soar leading to Capacity limits were breached late in 2000, causing prices to soar leading to worldworld recession. recession. The recession may be permanent because any recovery would lead to new The recession may be permanent because any recovery would lead to new oiloil demand until the limits were again breached which would lead to new price shocks demand until the limits were again breached which would lead to new price shocks re-imposing recession in a vicious circle. re-imposing recession in a vicious circle. WorldWorld peak may prove to have been passed in 2000, if demand is curtailed by peak may prove to have been passed in 2000, if demand is curtailed by recession. recession. Prices may remain weak in such circumstances but since demand is not infinitely Prices may remain weak in such circumstances but since demand is not infinitely elastic they must again rise from supply constraints when essential needs are elastic they must again rise from supply constraints when essential needs are affected affected

Oil price of today:

Crude Oil, Gasoline and Natural Gas Crude Oil, Gasoline and Natural Gas FuturesFutures

Prices for August 23, 2004Prices for August 23, 2004

NYMEX Light Sweet CrudeNYMEX Light Sweet Crude -0.67-0.67 $47.46.05$47.46.05

IPE BrentIPE Brent -0.51-0.51 $43.03$43.03

Gasoline NY HarborGasoline NY Harbor -0.0098-0.0098 $1.2575$1.2575

Heating Oil NY HarborHeating Oil NY Harbor -0.0149-0.0149 $1.2147$1.2147

NYMEX Natural GasNYMEX Natural Gas -0.242-0.242 $5.310$5.310

Conclusion about reservesConclusion about reserves

Peak Peak oiloil is a turning point for Mankind, is a turning point for Mankind, when a hundred years of easy growth when a hundred years of easy growth ends. The population may be about to ends. The population may be about to peak too for not unrelated reasons. The peak too for not unrelated reasons. The transition to decline is a period of great transition to decline is a period of great tension when priorities shift to self-tension when priorities shift to self-sufficiency and sustainability. It may end sufficiency and sustainability. It may end up a better up a better worldworld, freed from the , freed from the widespread gross excesses of to-day. widespread gross excesses of to-day.

Reservoir engineeringReservoir engineering

PorosityPorosity

Physical properties of the pore saturating Physical properties of the pore saturating fluids: density, compressibility, viscosityfluids: density, compressibility, viscosity

Reserves = Resources x Recovery factorReserves = Resources x Recovery factor

Multiphase flowMultiphase flow

Recovery factors: microscopic, areal, Recovery factors: microscopic, areal, verticalvertical

The oil, gas and water distribution The oil, gas and water distribution in a porein a pore

a) Water; b) Gas; c) Oil; d) Rock

Oil recovery efficiencyOil recovery efficiency

a./ depletion drive

b./ external gas drive, small gas cap

c./ external gas drive, large gas cap

d./ water drive

Modeling of reservoir and Modeling of reservoir and production performanceproduction performance

Material balances methodMaterial balances method

Reservoir simulationReservoir simulation Steady-state flowSteady-state flow Unsteady-state flowUnsteady-state flow Decline curve methods: exponential, Decline curve methods: exponential,

harmonic, hyperbolicharmonic, hyperbolic

History of drilling

Deep drilling engineeringDeep drilling engineeringRotary drilling

Drilling tools: roller bit

Drilling mud: thixotropic liquid, contains additives, like bentonite, cellulose, emulsifiers, inhibitors, density is between 1.1 and 1.4 g/cm3

Horizontal drilling with active steering

a) Parked drill pipe; b) Drill hook; c) Rotary swirrel; d) Flexible hose; e) Rotary table; f) Preventer; g) Vibrating screen (shaker); h) Pit; i) Cement sheath; j) Casing; k) Hollow drill pipe; l) Circulating drilling mud; m) Drill collar as part of the drill string; n) Roller cone bit; o) Rock strata; p) Reservoir rock horizon

Various types of bit Various types of bit

A) Roller bit with coarse teeth (for soft formation); B) Roller bit (for medium hard rock); C) Roller bit with fine teeth (for tough rock); D) Roller bit with hard metal inserts (for very hard formations); E) Roller cone bit; F) Jet bit; G) Diamond full-hole bit

Horizontal drilling strategies Horizontal drilling strategies A) Conventional; B) Drainhole, medium radius technology; C) Drainhole,

short hole technology

Mining drilling methodMining drilling method

Externally and internally smooth drill pipe

Greater drilling progress

Geophysical borehole measurements: electrical methods, sonic measurements, radioactivity measurements, determination of geophysical fields

Productivity tests before casing, short in duration because unstable borehole

Samples from the reservoir content, chemical and physical studies

Schematic diagram of double core barrela) Coupling to drill pipe; b) Overshot for pulling out with wireline; c) Outer tube, rotates core bit; d) Inner tube, nonrotating; e) Bearing; f) Mud passage; g) Ball valve; h) Core catching spring; i) Core catching cone; j) Mud channels

Comparison of oil and mining core drillingComparison of oil and mining core drilling

A) Oil core drilling (double tube core bit); B) Mining core drilling (cable core bit)

Key deep offshore technologiesKey deep offshore technologies

Deep Offshore Production RecordsDeep Offshore Production Records

Casing and cementationCasing and cementationSeveral concentric strings of Several concentric strings of casing pipes installed casing pipes installed according to geological and according to geological and engineering requirements engineering requirements partly during drilling.partly during drilling.Casing is cementedCasing is cementedLoads on casing:Loads on casing:

Differential pressureDifferential pressure Radial component of the Radial component of the

formation stressformation stress Tensile strength from own Tensile strength from own

weightweight Bending stress, especially in Bending stress, especially in

horizontal holeshorizontal holes Thermal stressesThermal stresses

Tubing string with packers Tubing string with packers transports the fluid produced to transports the fluid produced to the surfacethe surface

CementingCementing1.1. Massive bond of casing and Massive bond of casing and

formationformation2.2. Isolation of permeable Isolation of permeable

formationformation3.3. Corrosion protectionCorrosion protectionCement + water + additives = Cement + water + additives =

slurryslurry pumped through the borehole into pumped through the borehole into

the annulus between casing the annulus between casing and formation, at elevated and formation, at elevated temperatures retarders and temperatures retarders and antifriction agents must be antifriction agents must be added.added.

Production engineeringProduction engineering

The purpose of the exploitation and production planning The purpose of the exploitation and production planning of hydrocarbon reservoir is to produce optimum amount of hydrocarbon reservoir is to produce optimum amount of sealable products at minimum cost and with close of sealable products at minimum cost and with close attention to all aspects of safety and ecologyattention to all aspects of safety and ecologyProblems in oil production:Problems in oil production:

Time of water injection, adjust the pressureTime of water injection, adjust the pressure Dependence of the productivity index on viscosity of the oil and Dependence of the productivity index on viscosity of the oil and

water cutwater cut Gas production and availability in the gas lift methodGas production and availability in the gas lift method Advantages and disadvantages of the artificial lift methodsAdvantages and disadvantages of the artificial lift methods

In gas production:In gas production: Occurence of toxic and problematic substancesOccurence of toxic and problematic substances Heterogeneous multilayer and selective water incursionHeterogeneous multilayer and selective water incursion

Avoiding blowoutsAvoiding blowouts

General production engineeringGeneral production engineering

Completion, Setting up productionCompletion, Setting up production Wellhead, casing, cementing, tubing strings,bottom hole completion: „wireline Wellhead, casing, cementing, tubing strings,bottom hole completion: „wireline

equipment”. Two types: open-hole completion, casing on top of producing equipment”. Two types: open-hole completion, casing on top of producing formationformation

Perforation Perforation tubing-coupled perforating, it is a controlled explosiontubing-coupled perforating, it is a controlled explosion

Well and reservoir treatmentWell and reservoir treatment Well treatmentWell treatment Obstruction can be caused: solids from the mud, water block, swelling of the Obstruction can be caused: solids from the mud, water block, swelling of the

clay, chemical precipitation, emulsification.clay, chemical precipitation, emulsification. Obstructions can be removed by acid treatment (HCl or HF, surfactant)Obstructions can be removed by acid treatment (HCl or HF, surfactant) Reservoir bed treatment: pressure acidizing, hydraulic fracturing, injection of oil, Reservoir bed treatment: pressure acidizing, hydraulic fracturing, injection of oil,

water or acid together with viscosity enhancing agent, proppant (fluvial sand)water or acid together with viscosity enhancing agent, proppant (fluvial sand)WorkoverWorkover

Workover hoist, wireline technique, coiled tubing, diameter 2,54-5,08cm, used at Workover hoist, wireline technique, coiled tubing, diameter 2,54-5,08cm, used at a depth of up to 5500ma depth of up to 5500m

Horizontal wells: open hole, open hole with slotted or prepacked liner, slotted Horizontal wells: open hole, open hole with slotted or prepacked liner, slotted liner with external casing packers in the open hole, cemented and perforated liner with external casing packers in the open hole, cemented and perforated liner.liner.

Bottom-hole equipment in the reservoir zoneBottom-hole equipment in the reservoir zone

A) Main dolomite, uncased; B) Carboniferous, casing with liner; a) Tubing, 2 7/8 inch (2.22 cm); b) Cement; c) Production packer; d) Casing, 7 inch (17.8 cm); e) Liner hanger; f) Liner, 5 inch (12.7 cm)

Tubing-conveyed perforation (TCP) Tubing-conveyed perforation (TCP)

Oil production engineeringOil production engineering

1. Flowing production

2. Gas lift3. Centrifugal

pumps4. Piston pumps,

sucker rod or hydraulic

Continuous gas-lift operationA) Schematic; a) Annulus; b) Valves closed; c) Tubing; d) Valves open; e) Production zone; B) Pressure distribution at different depths; a) Annulus pressure; b) Pressure curve in tubing for production well; c) Pressure curve in tubing for inoperative well

Different types of pumpDifferent types of pump

A) Subsurface rod pump with walking beam drive; B) Electric submersible centrifugal pump; C) Hydraulic subsurface piston pump with pressure oil supply in the open system;a) Casing; b) Tubing string; c) Wellhead; d) Pump rod; e) Subsurface pump; f) Drive pump, g) Production pump; h) Pressure oil pump with i) Pressure raising pump on the suction side; j) Motor; k) Sealing adaptor; l) Gas separator; m) Nonreturn valve; n) Tubing drain valve; o) Three-core cable; p) Circulation piece; r) Pressure oil tank; s) High voltage transformer; t) Autotransformer; u) Switch cabinet; v) Walking beam; w) Gearing; x) Tubing anchor; y) Production packer

Collection and treatment of crude oilCollection and treatment of crude oil

Gas separationGas separation

Dewatering and desaltingDewatering and desalting Emulsion breaking: early feeding of demulsifier, Emulsion breaking: early feeding of demulsifier,

moderate heating, separation in a tankmoderate heating, separation in a tank

Special problems in crude oil productionSpecial problems in crude oil production Paraffin precipitationParaffin precipitation Chemical precipitatesChemical precipitates Sand: safe production rate, filters, consolidation by Sand: safe production rate, filters, consolidation by

resinsresins CorrosionCorrosion

Flow diagram of an oilfield Flow diagram of an oilfield a) Compressor; b) Drying; c) Line; d) Gas separator; e) Heater; f) Separator; g) Desalter; h) Tank; i) Secondary sedimentation; j) Filter

Natural gas production engineeringNatural gas production engineering

Special requirements in natural gas Special requirements in natural gas productionproduction

High pressures and pressure differencesHigh pressures and pressure differencesExtreme temperature differencesExtreme temperature differencesAggressive gas constituentsAggressive gas constituentsGastight tubing, special sealing materialsGastight tubing, special sealing materialsControlled and monitored productionControlled and monitored productionSafety at the surface, underground safety Safety at the surface, underground safety valvesvalvesDeep storage reservoirsDeep storage reservoirs

Sour gas well

a) Well head; b) Anchor casing; c) Cement; d) Intermediate casing; e) Injection annulus; f ) Tubing; g) Production packer; h) Liner; i) Perforations

Treatment of natural

gas

Sulfur removal

Removal of mercury

Dehydration

Removal of hydrocarbons

Removal of carbondioxid and sulfur components

Dehydration and cooling of natural gas

a) High pressure separator (free water knockout); b) Heater; c) Air cooler; d) Separator; e) Joule – Thomson valve; f ) Gas – gas heat exchanger; g) External cooling system for low-pressure wells

Hydrocarbon removal from natural gas

a) – c) Adsorbers; d) Heater; e) Cooler; f ) Chiller; g) Separator; h) Phase separator

Physical-chemical scrubbing of natural gas

a) Absorber; b) Air cooler; c) Regenerator; d) Air condenser; e) Intermediate flash stage with reabsorber; f ) Reboiler; g) Phase separator; h) Expansion

turbine

Liqiud oxidation process

Absorption of hydrogensufide

Oxidation to sulfur

Reoxidation of active component with air

Separation of elementary sulfur

a) Absorber; b) Oxidizer; c) Settling tank; d) Centrifuge; e) Recirculating pump; f ) Air blower; g) Chemical additive pump; h) Sulfur slurry pump; i) Sulfur melter

Membrane separation of impurities

Adsorption processes

Activated charcoal, zeolites

Complete natural gas

treating plant

a) Sour gas manifold;

b) Town gas manifold;

c) Disposal well – · – · – Steam; 

– – – – Condensate

LLiqiud iqiud NNatural atural GGasas

Liquefied natural gas on low temperature: Liquefied natural gas on low temperature: -160-160ooCC

Pretreat the gasPretreat the gas

RefrigerationRefrigeration

StorageStorage

Transportation: tankersTransportation: tankers

Nine-stage cascade liquefaction processNine-stage cascade liquefaction process

a) Compressor; b) Condenser;

c) Accumulator; d) Phase separator;

e) Heat exchanger

Underground storage facility for natural gas

European natural gas pipelines

Trans-Alaska pipeline south of Delta Junction. The pipeline Trans-Alaska pipeline south of Delta Junction. The pipeline extends 800 miles from Prudhoe Bay to Valdez. extends 800 miles from Prudhoe Bay to Valdez.

Alaska Range is in the background.Alaska Range is in the background.