Hydrocarbon Potential of Middle Eastern Basins of the Gulf - Geology & Geopolitics mix!

1. Hydrocarbon Potential of Middle Eastern Basins of the Gulf - Geology & Geopolitics mix! Spring 2008 A case that demonstrates that “Actions Speak Louder than Words” Professor Christopher G. St. C. Kendall kendall@sc.edu 803-777-2410

2. Outline of Presentation • Data Sources - Texts • Who has all the oil? Countries & Reserves • Geological Setting of the Middle East Oil Reserves • Recent Oil History of Middle East • Conclusions

3. Outline of Presentation • Data Sources - Texts • Who has all the oil? Countries & Reserves • Geological Setting of the Middle East Oil Reserves • Recent Oil History of Middle East • Conclusions

4. Texts on History of Petroleum Exploitation 3 books set Middle East petroleum scene: "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin Records history of petroleum Industry in USA, Baku,& Middle East. "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British & their allies... "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move on Ottoman Empire and results..... These are well written, easy to read informative histories!

5. Texts on History of Petroleum Exploitation 3 books set Middle East petroleum scene: "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin Records history of petroleum Industry in USA, Baku,& Middle East. "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British & their allies... "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move on Ottoman Empire and results..... These are well written, easy to read informative histories!

6. Texts on History of Petroleum Exploitation 3 books set Middle East petroleum scene: "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin Records history of petroleum Industry in USA, Baku,& Middle East. "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British & their allies... "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move on Ottoman Empire and results..... These are well written, easy to read informative histories!

7. Texts on History of Petroleum Exploitation 3 books set Middle East petroleum scene: "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin Records history of petroleum Industry in USA, Baku,& Middle East. "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British & their allies... "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move on Ottoman Empire and results..... These are well written, easy to read informative histories!

8. Outline of Presentation • Data Sources - Texts • Who has all the oil? Countries & Reserves • Geological Setting of Middle East Oil Reserves • Recent Oil History of Middle East • Conclusions

9. Current Middle East Reserves of Cheap Oil Crude Oil(BB) - Natural Gas (TCF) • Saudi Arabia 263.5 bbls 204.5 Tcf – 8 Years • Iraq 112 bbls 109 Tcf • UAE 97.8bbls 212 Tcf • Kuwait 96.5 bbls 52.7Tcf • Iran 89.7 bbls 812.3Tcf • Oman 5.3 bbls 28.4 Tcf • Yemen 4.0 bbls 16.9 Tcf • Qatar 3.7 bbls 300.0 Tcf • Syria 2.5 bbls 8.5 Tcf • Bahrain 0.1 bbls 3.9 Tcf • TOTAL 675.1 bbls 1,748.2 Tcf Most of these countries oil is in carbonates

10. Arabian GulfFields & the ageof theirReservoirs Tertiary Cretaceous Jurassic { { Paleozoic After Al Sharhan

11. Iraq's Role? Thomas Homer-Dixon’s ConflictModel Environmental Scarcity ---> Social Effects ---> Violent Conflict • U.S. War Against Terrorism in a deadly phase spreading across Middle East • Middle East a geopolitical cauldron - Caspian States on eastern flank & Mediterranean on western flank; bridge between Europe, Africa & Asia • Important current battlefields within region include Iraq & Iran, West Bank, Somalia, Sudan & Afghanistan

12. World Petroleum Exploitation • Non-OPEC countries produced 60% of world's oil in 2008 with a steady increase since 1993 • Currently only 4 (Saudi Arabia, Iran, UAE, & Venezuela) of top 10 oil producers are OPEC • Most prolific producers are Russia 12.6,Saudi Arabia 10.6, USA 8.4, Iran 4, Mexico 4, China 4, Canada 3, Norway 3, UAE 3, Venezuela 3, Kuwait 3, Nigeria 2.4, Algeria 2, Brazil 2 • Non-OPEC countries have most of world's capacity for refining crude oil into gasoline & heating oil

13. World Petroleum Exploitation • As of January 2004, OPEC countries hold 77% of world's proven oil reserves • Most major non-OPEC oil producers are very large consumers, & low exporters • World 84 - USA consumes20.73, imports 13.15 & exports 1.048 million bbl/day Today’s price$91.45 • Persian Gulf OPEC has the world's lowest oil finding & lifting costs • Non OPEC oil liable to price collapse e.g. Russia • Consumption grows 3% annually

14. Commodity Scarcity • Exploration potential • Gulf coast & West Texas for small US companies • Oil shales of Western USA & Athabaska tar sands • Employment in exploration & builders of exploitation models of current oil fields in Secondary & Tertiary recovery mode! • At least 1% of you in this room should be millionaires before you retire!

15. Outline of Presentation • Data Sources - Texts • Who has all the oil? Countries & Reserves • Geological Setting of Middle East Oil Reserves • Recent Oil History of Middle East • Conclusions

16. Arabian Basin Traces a polyhistory of plate tectonic & sedimentary fill: • Pre Cambrian to Infra-Cambrian - Continental interior • Silurian and Ordovician clastics – Continental interior • Permian clastics & carbonates – Trailing margin • Upper Jurassic Carbonates – Trailing margin • Lower Cretaceous Carbonates – Trailing margin • Middle Cretaceous – Compression & Zagros Mts initiated • Tertiary Carbonates and Clastics - Compressional margin

17. Oil Production - Arabian Gulf Productive hydrocarbon section older to West [Paleozoic] & younger in East in the Zagros Mts [ Upper Tertiary]. West to East production includes: • Infra-Cambrian Salt • Silurian and Ordovician clastics – Unaizah • Permian clastics & carbonates – Khuff • Upper Jurassic Carbonates - Arab & Tuwaik Mt Group • Lower Cretaceous Carbonates – Shuaiba & Thammama • Middle Cretaceous – Mishrif • Tertiary - Asmari

18. Zagros Mountain Chain After Dennis Tassa

19. Structural Provinces - Arabian Gulf Zagros Fold Mts Mesozoic to Tertiary Foreland Basin Pre-Cambrian Shield Nasa Image

20. Arabian Gulf tracks the Wilson Cycle The Wilson Cycle records plate motion opening & closing of ocean basins and the Arabian cycle is: • Interior Cratonic sag & fracture basins of Arabia • Plate rift & divergence with formation of new ocean basin, the Tethys • Plate motion reverses & convergence enables collision, & mountain building, the Zagros Mountain chain

21. Compressional Margin Extensional & Compressional Margin Arabian Gulf Interior Sag Extensional margin Extensional margin

22. Evolution of Arabian Gulf Foreland Basin Compression & Foreland Basin Extensional margin Extensional margin Interior Sag After Kingston et al, 1983

23. Arabian plate stratigraphic section with hydrocarbon production Oil Gas

24. Pre-Cambrian Interior Sag

25. Silurian Interior Sag

26. Extensional margin Permian

27. Restricted Entrance To Sea Structural & Depositional Barrier over Hercynian Horst Blocks Permian Khuff Saudi Arabia Oman & UAE Arid Tropics Air System Wide Shadow from Adjacent Continents

28. Extensional margin Jurassic

29. Extensional margin Jurassic

30. Restricted Entrance To Sea Depositional Barrier over Hercynian Horst Blocks Upper Jurrassic Saudi Arabia Kuwait, Iran & UAE Tropical Air System ! Wide Shadow from Adjacent Continents

31. Compression & Foreland Basin Cretaceous to Tertiary After Dennis Tassa

32. Zagros Fold Mountains - Iran Compression & Foreland Basin Nasa Image

33. Zagros Fold Mountains Iran Nasa Image Compression & Foreland Basin

34. Zagros Fold Mountains - Iran

35. After Murris

36. After Murris

37. From International Petroleum Encyclopedia

38. Arabian Gulf Factory producing carbonates & storing products of cyanbacteria since Permian Nasa Image

39. A big day for a bloom!! Organics in the Gulf! Nasa Image

40. Basin Ramp Open Shelf Restricted Shelf

41. Sedimentary Section is Source Collister, James, Robert Ehrlich, Frank Mango, and Glenn Johnson (2004), Modification of the petroleum system concept: Origins of alkanes and isoprenoids in crude oils AAPG Bulletin, v. 88, no. 5 pp. 587–611Establish that the source of petroleum was once dispersed through much of the sedimentary sections and not necessarily from classic organic rich source rocks.

42. After Baum, & Kendall

43. Geological Setting of Jurassic Oil Seal Seal Reservoir Reservoir IntrashelfBasin IntrashelfBasin

44. The Hanifa Formation Oil Fields

45. Hanifa Formation - Berri Field

46. Lower Cretaceous - Barremian Barremian Paleogeography in Gulf Region (Murris1980)

47. Lower Cretaceous Stratigraphic cross-section of Cretaceous Eastern Arabia (Alsharhan & Nairn 1986)

48. Zakum Field - UAE Note fining upwards cycles Pittet et al, 2002

49. Zakum Field - UAE Anticlinal shape of field Pittet et al, 2002

50. Geologic Cross-Section - Arabian Gulf Oil fields become younger from west to east