Overview of the gas and oil industry

1. Overview of the gas and oil industry Professor Antal Tungler 2004

2. Topics of the module • Exploration of gas and oil • Origin, Exploration, Reservoir Engineering, Forecasts, Deep Drilling and Production Engineering • Composition and Classification of Crude Oil and Natural Gas • Transportation and Storage of Crude Oil and Natural Gas • Oil refining • Crude oil distillation • Chemical conversion processes in refineries • Integrated refinery structures • Environmental protection in refineries • Modern fuels, high-tech lubricants, utilisation of refinery products, alternative fuels • Automotive exhaust gas purification catalysts, hybrid drive, fuel cells

3. 1. Exploration of gas and oil Occurence, composition, origin, reserves, exploration, recovery, production engineering of oil and gas, natural gas purification, LPG

4. Definition • Crude oil is the name given to all organic compounds which are liquid under reservoir conditions. • Petroleum composition: - hydrocarbons -S, O, N, P compounds -metal compounds (V, Ni, Cu, Co, Mo, Pb, Cr, As) H2S and water Elementary composition: C 79,5-88,5%, H 10-15,5%

5. Constituents of petroleum • Alkanes • Naphtenes • Aromatics

6. Classification of crude oils • Paraffin based -found in deeper zones • Naphtene or asphalt based –found in upper level • Mixed-based –found in middle zones • Composition on worldwide basis: • ~30% paraffins, 40% naphtenes, 25% aromatics

7. Natural Gas • Dry and wet natural gases • Components: methane, higher hydrocarbons, nitrogen, carbondioxid, hydrogen sulfide, helium • Associated gas, closely connected to crude oil • Natural gas---non-associated

10. Formation of crude oilpredominantly of organic origin • Petroleum source rock-deposits in sedimentary basin contain organic residues of terrestrial, limnic, fluvial and marine origin-conversion under anaerobic conditions-resulting in bitumen or kerogen • Source rock should contain 0,5% TOC • Anoxic zones: nonmarine lakess (lake Tanganyika), closed inland seas with positive water balance (Black Sea deep zones), ascent of marine current from greater depths (Benguela current Africa, Humboldt current, Peru), open ocean (global climatic warming with large transgressions in Jurassic and middle Cretaceous period) • Crude oil formation from phytoplankton, bacteria-in the Silurian—Devonian period • Formation: organic material in sapropels is decomposed, decayed by anaerobic bacteria, organic material adsorbed onto fine clay particles, which sink to the sea floor. Sedimentation condition in Pliocene were similar to that of novadays in the offshore regions of the sea.

11. Hydrocarbon formationDiagenesis, Catagenesis, (at depths of 1000-5000 m and 175 oC) Metagenesis

12. Migration of oil dropletsfrom argillaceous source rocks into porous reservoir rocks • Lateral migration through capillary paths • Vertical migration- fine fissures • During migration occurs separation from water, gravitational separation: gas-oil-water • Chemical degradation leads to smaller and more stable compounds • Maturation process concludes with the conversion to methane

13. Reservoir rocks and trap structures Fluvial sand, Beach and barrier sand, Wind-blown sand, Marine platform sand Deep water sand, Reefs, Reef limestone debris, Chalk

14. Occurences

15. Production and reserves

16. Production and reserves

17. Oil explorationpreliminary exploration, exploratory wells • Geological exploration • Satellite images • Examination of rock samples • Stratigraphic investigations • Geophysical investigation • Magnetic measurements • Gravimetric measurements • Geoelectric measurements • Seismic methods • Refraction Reflection methods 3D method • Geochemical investigation • Exploratory drilling

18. The entire exploration-to-production chain was reviewed and adapted to greater water depths: • The development and use of (3D) seismic was intensified. • 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. • Efforts were made to come up with new materials for the flexibles (able to withstand high pressures at great water depths, etc.). • Horizontal and multibranch wells came into general use, reducing the number of wells.

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

21. Liquid petroleum consumed in the United States during the past 50 years came from three sources

22. Main parameters for Conventional oil

23. Peak Oil. It truly is a turning point for mankind • Conventional oil - and that will be defined - provides most of the oil produced today, and is responsible for about 95% all oil that has been produced so far. • 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 consume. • Middle East share of production is set to rise. The rest of the world peaked in 1997, and is therefore in terminal decline. • Non-conventional oil delays peak only a few years, but will ameliorate the subsequent decline. • Gas, which is less depleted than oil, will likely peak around 2020. • Capacity limits were breached late in 2000, causing prices to soar leading to world recession. • The recession may be permanent because any recovery would lead to new oil demand until the limits were again breached which would lead to new price shocks re-imposing recession in a vicious circle. • World peak may prove to have been passed in 2000, if demand is curtailed by recession. • 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 affected

27. Oil price of today:

29. Crude Oil, Gasoline and Natural Gas FuturesPrices for August 23, 2004

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

32. Reservoir engineering • Porosity • Physical properties of the pore saturating fluids: density, compressibility, viscosity • Reserves = Resources x Recovery factor • Multiphase flow • Recovery factors: microscopic, areal, vertical

33. The oil, gas and water distribution in a pore

34. Oil recovery efficiency

35. Modeling of reservoir and production performance • Material balances method • Reservoir simulation • Steady-state flow • Unsteady-state flow • Decline curve methods: exponential, harmonic, hyperbolic

36. History of drilling

37. Deep drilling engineering Rotary 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

38. Mining 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

39. Key deep offshore technologies

40. Deep Offshore Production Records

41. Several concentric strings of casing pipes installed according to geological and engineering requirements partly during drilling. Casing is cemented Loads on casing: Differential pressure Radial component of the formation stress Tensile strength from own weight Bending stress, especially in horizontal holes Thermal stresses Tubing string with packers transports the fluid produced to the surface Cementing Massive bond of casing and formation Isolation of permeable formation Corrosion protection Cement + water + additives = slurry pumped through the borehole into the annulus between casing and formation, at elevated temperatures retarders and antifriction agents must be added. Casing and cementation

42. Production engineering • The purpose of the exploitation and production planning of hydrocarbon reservoir is to produce optimum amount of sealable products at minimum cost and with close attention to all aspects of safety and ecology • Problems in oil production: • Time of water injection, adjust the pressure • Dependence of the productivity index on viscosity of the oil and water cut • Gas production and availability in the gas lift method • Advantages and disadvantages of the artificial lift methods • In gas production: • Occurence of toxic and problematic substances • Heterogeneous multilayer and selective water incursion • Avoiding blowouts

43. General production engineering • Completion, Setting up production • Wellhead, casing, cementing, tubing strings,bottom hole completion: „wireline equipment”. Two types: open-hole completion, casing on top of producing formation • Perforation • tubing-coupled perforating, it is a controlled explosion • Well and reservoir treatment • Well treatment • Obstruction can be caused: solids from the mud, water block, swelling of the clay, chemical precipitation, emulsification. • Obstructions can be removed by acid treatment (HCl or HF, surfactant) • Reservoir bed treatment: pressure acidizing, hydraulic fracturing, injection of oil, water or acid together with viscosity enhancing agent, proppant (fluvial sand) • Workover • Workover hoist, wireline technique, coiled tubing, diameter 2,54-5,08cm, used at a depth of up to 5500m • 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.

44. Oil production engineering • Flowing production • Gas lift • Centrifugal pumps • Piston pumps, sucker rod or hydraulic

45. Oil production engineering

46. Collection and treatment of crude oil • Gas separation • Dewatering and desalting • Emulsion breaking: early feeding of demulsifier, moderate heating, separation in a tank • Special problems in crude oil production • Paraffin precipitation • Chemical precipitates • Sand: safe production rate, filters, consolidation by resins • Corrosion

47. Natural gas production engineering

48. Special requirements in natural gas production • High pressures and pressure differences • Extreme temperature differences • Aggressive gas constituents • Gastight tubing, special sealing materials • Controlled and monitored production • Safety at the surface, underground safety valves • Deep storage reservoirs

49. Sour gas well

50. Treatment of natural gas Sulfur removal Removal of mercury Dehydration Removal of hydrocarbons Removal of carbondioxid and sulfur components