1 / 8

Oil and Gas Exploration Project

Oil and Gas Exploration Project. A Lab Exercise ANDREW M. GOODLIFFE. Oil and Gas Exploration Project. Gives the students the opportunity to sample a small amount of what goes into exploring for oil and gas

mlamarche
Download Presentation

Oil and Gas Exploration Project

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Oil and Gas Exploration Project A Lab Exercise ANDREW M. GOODLIFFE

  2. Oil and Gas Exploration Project • Gives the students the opportunity to sample a small amount of what goes into exploring for oil and gas • Modified from a lab in Freidman and Johnson [1982], (via Reames and Carrigan at Olivet). • Serves as a “partial capstone” experience • Students combine material covered during a topographic maps lab, and material covered during a fossil fuels section in class • Emphasizes student collaboration – both within and between teams • Introduces an economic factor – this appeals to many business majors • Competitive • Not everyone likes this!

  3. Student Learning Objectives • At the end of this lab, students are able to: • Contour a geological horizon using point measurements and profile data • Identify simple structural petroleum traps • Determine coordinates using the Township and Range system (useful when buying a house in many states) • Synthesize basic geological data to target a potentially productive oil and gas well • Make more informed choices about team members!

  4. The Lab • Students are “given” $2 million in start up capital • They are allowed to form corporations comprising of up to 3 students (a greater number presenting the issue of a monopoly) • Corporations must keep all of their data confidential • On approval of the instructor, corporations can enter into deals (for example, sell data, knowledge)

  5. The Lab • Students are provided with a map that has point measurements of the depth to a known reservoir rock • They contour this map (hopefully before the start of lab) • There are many area where there are no data • Students are encouraged not to over-extrapolate

  6. The Lab Profile location • With their new map, students must now bid on leases in order to drill • At any time, corporations can improve their chances of hitting oil and gas by buying additional data (structural interpretations, $10,000/mile) along section edges) • Maps can be improved as data is added • Competitive lease sales take place every 30 minutes – corporations might end up with no leases • Corporations can make bids in ¼ section units (160 acres), no more than 20 bids every 30 minutes $60,000 worth of data….

  7. The Lab • Once a corporations wins a bid, it can now drill • One well per 40 acre tract • $50,000 per well • Corporations submit well locations to the instructor • Based on a master map held by the instructor, wells are dry, produce gas, or produce oil • Oil producing wells generate $100,000 per 30 minutes • Gas producing wells produce $50,000 per 30 minutes • A list of leaseholders and producing wells is maintained at the front of the classroom

  8. Grading • Class grade is assigned on a corporation basis • The corporation with the most money at the end of the lab exercise gets 220 point (100%) • The corporation that places 8th gets 150 points (69%)

More Related