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    AppliedReservoir

    Geology

    Applied Reservoir Geology

    Copyright 2008, NExT, All rights reserved

    -

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    AppliedReservoir

    Geology

    RegionalGeology

    Provenance, Stress

    Local Geology DepositionalEnvironment

    StructuralGeology Stratigraphy

    Depositional Sequence,

    DepositionalProcess

    The Geological Integration Process

    Stage 1

    Copyright 2008, NExT, All rights reserved 2

    RegimeGenetic Units Facies Distribution

    17 Sd

    20 Sd21 Sd

    22 Sd

    23 Sd

    IMM 9

    22

    Sd

    ClosureArchitecture

    Flow Regime

    Stage 2

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    AppliedReservoir

    Geology

    Rock & Pore TypesRock & Pore TypesLithofaciesLithofacies

    Petrophysics Integration Process ModelPetrophysics Integration Process Model

    SwiSor

    Relative Permeability

    Recovery Factor, PVTFractional Flow

    Sw

    AABB

    CCSw i

    Non-wetting Saturation

    Pressure

    orHeight

    Capillarity, NMR,

    Pore Sizes, Saturations,Fluid Column Heights

    FluidsFluids

    . . . .. . . .. . . .. . . .

    . . . .. . . .. . . .. . . .

    . . . .. . . .. . . .. . . .

    . . . .. . . .. . . .. . . .

    . . . . .. . . . .. . . . .. . . . .

    Facies BFacies B

    Facies CFacies C

    Depositional

    Architecture

    Facies AFacies A

    Petrology, Mineralogy,

    Diagenesis, Porosity

    PoreSizes

    CorePerm

    AA

    Core Porosity

    Porosity, Permeability,

    Pore size distribution

    . . ... . ... . ... . ... .. .. .. .

    . .. .. .. .. ... ... ... ..

    . . ... . ... . ... . ... .. .. .. ...... ... ... ... ..

    . ... ... ... .. CC

    BBAA

    AA CCBB

    Stage 2

    The Geological Integration Process

    Copyright 2008, NExT, All rights reserved 3

    Fundamentals of Petrophysics and Subsurface Integration

    /

    19/97/19/97 1111 96ori en t.ppt96ori en t.ppt

    Sandst

    one

    Density

    Neutron

    *

    Formation EvaluationFormation Evaluation

    WaterWater

    Pressure

    Lithology, Porosity,Fluid Satn, Net Pay

    Pressures,Fluid Density,Fluid Contacts

    Reservoir Compartments & Flow UnitsReservoir Compartments & Flow Units

    Press. Transient,Permeability,

    Reservoir Limits

    FetkovichType Curves

    Volume in-place,Permeability

    Reservoir &Reservoir & GeostatisticsGeostatisticsModelsModels

    Performance MapsTime

    Depth

    K/Phi(1-S w)%PhiH %KH

    Storage

    Capacity

    Delivery

    Speed

    Flow

    Capacity

    Rate

    * ** **

    *

    *

    Pressure

    Well Log ModelsLithology, Porosity

    Resistivity

    ***

    Dolo

    mite

    Limeston

    e

    *

    Depth

    EOR sweep,by-passed pay

    Porosity, Perm,Pay Distribution

    Well & FieldPerformance

    Oil

    Gas

    Water

    %Cum.KH

    Modi fied Lorenz,Storage & Flow Capacity

    % Cum. BVHC

    SeismicSeismicModelsModels

    Amplitudes, AVO,Coherency, Vp/Vs

    3D Volume

    Attribute Maps

    Horizon Slices. . .. .. . .Pay Maps

    ReservoirReservoirManagementManagement

    Time

    PerformanceSimulation,

    GCOMP, GAS3D

    Time

    Gr Sw

    Production DataProduction Data

    **

    *

    *

    *

    ****

    **

    CC

    BB

    AA

    CC

    BB

    AA AABB

    CC

    AAABBB

    CCC

    AAA

    BBB

    CCC

    *

    Stage 4

    Stage 3

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    AppliedReservoir

    Geology

    The Petroleum Reservoir

    is a complexinteraction between

    physical, chemical,and time processesthat needs to beunderstood from a

    Copyright 2008, NExT, All rights reserved 4

    number ofviewpoints.

    In this course, we willdeal with the

    GEOLOGICAL pointof view.

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    AppliedReservoir

    Geology

    Petroleum:

    a natural yellow-to-black liquidhydrocarbon found at and beneath

    the earths surface. Petroleum is a

    What is Petroleum?

    Copyright 2008, NExT, All rights reserved 5

    mixture of many differenthydrocarbons

    Hydrocarbon:

    an organic compound made up ofcarbon and hydrogen atoms

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    Geology

    History of petroleum use

    First Use

    Egypt , China, Babylon, America

    First Drilling

    History of Petroleum

    Copyright 2008, NExT, All rights reserved 6

    .

    America: 70/25m in 1859 AD.

    First Product

    Kerosene for lamps.

    Gasoline was unwanted by-product.

    Demand Increase with Industrial Revolution

    Internal Combustion Engine(1885)

    Global Economic Growth

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    Geology

    History of Petroleum

    Copyright 2008, NExT, All rights reserved 7

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    GeologyThe early days.

    History of Petroleum

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    Geology

    One barrel of oil

    42 gallons / 159 litres Gasoline - 19.5 gallons 45 %

    Fuel Oil - 9.2 allons 21 %

    The Ubiquitous Barrel

    Copyright 2008, NExT, All rights reserved 9

    Jet Fuel - 4.1 gallons 9%

    Asphalt - 2.3 gallons 5%

    Kerosene - 0.2 gallons 0.5%

    Lubricants - 0.5 gallons 1.2%

    Petrochemicals/other products 6.2 gallons

    14.7%

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    Geology

    80

    100

    100 BILLIONBARRELS

    Billion

    Hydroelectric

    Solar WindGeothermal

    1993NewTechnolo

    NewTechnolo

    Careers inCareers inOil & GasOil & Gas

    Will be ImportantWill be Important

    World Energy Demand 1900-2100

    Copyright 2008, NExT, All rights reserved 10

    1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 2100

    20

    40(GBOE)

    Equivalent

    NaturalGas

    Crude Oil

    oa

    Dec

    reasing

    Dec

    reasing

    FossilFuels

    FossilFuels

    ies

    ies

    after Edwards, AAPG 8/97

    Tar Sands/Oil Shales

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    AppliedReservoir

    Geology

    June 2008$ 145

    Price of Oil 1861 to Today

    Copyright 2008, NExT, All rights reserved 11

    Feb 2009$ 39

    March 2010$ 72

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    AppliedReservoir

    Geology

    Proved oil reserves

    61.0%

    Copyright 2008, NExT, All rights reserved From BP Statistical Review of World Energy 2008

    Total 2007 Reserves = 1,238 billion barrels

    11.6 %9.5 %9 %5.5 %3.2 %

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    Geology

    Distribution of proved oil reserves 1987-2007

    1er.3ero.

    Copyright 2008, NExT, All rights reserved BP Statistical Review of World Energy 2008

    1er2do.

    3ero.

    2do.

    .

    2do.

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    AppliedReservoir

    GeologyTotal 2007 Production = 81.5 million barrels per day

    Oil production by area

    Copyright 2008, NExT, All rights reserved BP Statistical Review of World Energy 2008

    1

    2

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    Geology

    Oil consumption by area

    2007 Consumption = 86 million barrels per day

    Total 2007 Production = 81.5 million barrels per day

    Copyright 2008, NExT, All rights reserved BP Statistical Review of World Energy 2008

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    AppliedReservoir

    Geology

    Reserves Coal and Gas

    Copyright 2008, NExT, All rights reserved 16

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    AppliedReservoir

    Geology

    Copyright 2008, NExT, All rights reserved

    1er

    2do.

    3ero.

    4o.

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    AppliedReservoir

    Geology

    World Oil Reserves by Rock Type

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    Geology

    Energy Consumption

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    AppliedReservoir

    Geology

    The United States' "400-plus coal-fired

    power plants emit more toxins into the

    air than any other single source; some

    42% of the US total, according to the

    2002 Toxic Release Inventory (TRI)"

    The CO2 Problem

    Copyright 2008, NExT, All rights reserved

    Half of all Americans live within 30miles of a coal-burning power plant

    "...which, in addition to mercury, emit

    more than 361,000 tons of other toxins

    including vanadium, barium, zinc, lead,

    chromium, arsenic, nickel, hydrogenfluoride, hydrochloric acid, ammonia

    and selenium."

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    Geology

    Even though the early

    oilmen worked with

    primitive exploration

    techniques, the peakyear for discoveries of

    giant oil fields (ultimate

    recovery of 500 mbbl oil

    or more) in the U.S. was

    Are we replacing reserves?

    Copyright 2008, NExT, All rights reserved

    In the last 20 years, only three fields (in Norway , Columbia and Brazil ) have been found with more than one

    billion barrels each. None produce more than 200,000 barrels a day. From 1990 to 2000 a total of 42 billion

    barrels of new reserves were discovered. In the same period the world consumed 250 billion barrels.

    ,

    1962. 80% of the oilproduced in 1995 was

    found before 1973.

    We now find one barrel

    for every four we

    consume.

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    Geology

    Are we replacing reserves?

    Copyright 2008, NExT, All rights reserved

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    AppliedReservoir

    Geology

    Exploration

    The reservoir is discovered, but not yetunderstood (size, contents, etc.)

    Delineation/Appraisal

    The Reservoir Lifecycle

    Copyright 2008, NExT, All rights reserved 23

    ze an ex en o reservo r e nea e

    reservoir parameters evaluated

    Development

    Understanding of reservoir improves,

    production grows Maturity

    Reservoir well understood, produced,

    depleted, secondary recovery

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    AppliedReservoir

    Geology

    Exploration Appraisal Development Maturity

    +

    Maximize ProductionEconomically

    MaximizeRecoveryEconomically

    AccelerateProduction

    Reservoir Life Cycle and Business Value

    Copyright 2008, NExT, All rights reserved 24

    MinimizeCapitalExpense

    MinimizeOperatingExpense

    DeferAbandonment

    Time

    Optimized Development Traditional Development

    CashFlow

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    AppliedReservoir

    Geology

    Prediction

    Description

    Characterization

    Geophysics

    Petrophysics Geology

    Domain Integration

    Copyright 2008, NExT, All rights reserved 25

    Performance Optimization

    Engineering

    Drilling Computing

    Reservoir

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    AppliedReservoir

    Geology

    Prudhoe Bay - 2001

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    AppliedReservoir

    Geology

    Prudhoe Bay - 2001

    Copyright 2008, NExT, All rights reserved 27

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    Geology

    Prudhoe Bay Original 1969 Map

    Copyright 2008, NExT, All rights reserved 28

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    AppliedReservoir

    Geology

    Prudhoe Bay Field Oil - 28API

    Copyright 2008, NExT, All rights reserved 29

    Carboniferous

    U. Triassic

    L. Jurassic

    L. Cretaceous

    Source Rocks:1. L. Cretaceous marine shale (HRZ Fm.)

    2. L. Jurassic marine shale (Kingak Sh.)3. U. Triassic marine carb. & shale

    Triassic

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    Geology

    Prudhoe Bay Field -Parameters

    Discovery

    OOIP

    1968 Arco Sohio

    22 Billion Barrels

    First Production 1977

    Initial Recovery Estimate 9.6 BSTB

    Copyright 2008, NExT, All rights reserved 30

    .

    Estimated Start of Decline 1989

    1997 Recovery Estimate 13 BSTB

    Gas Cap 30TCF

    ReservoirHigh quality sandstone with

    discontinuous shales

    Drive Mechanism

    Gravity, Gas Cap expansion,

    solution gas

    A li d

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    AppliedReservoir

    Geology

    Better 3D Seismic Gas Injection (Cycling)

    Reservoir

    Enhanced value and field production due to technology and improvedreservoir understanding.

    Prudhoe Bay Field -Development

    Copyright 2008, NExT, All rights reserved 31

    o e s o e ng

    3x Number of Wells New Zones/Satellite

    Fields

    Horizontal/MultilateralWells

    Re-Perforations

    Coiled Tubing Formation Damage

    Mitigation

    Waterflood

    A li d

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    AppliedReservoir

    Geology

    Prudhoe Bay Field Maturity

    Copyright 2008, NExT, All rights reserved 32

    A li d

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    Geology

    Prudhoe Bay Field -Stratigraphy

    Copyright 2008, NExT, All rights reserved 33

    Applied

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    Geology

    Prudhoe Bay Field Stratigraphic Section

    Copyright 2008, NExT, All rights reserved 34

    Applied P dh B Fi ld

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    Geology

    Prudhoe Bay Field Depletion Mechanism

    Copyright 2008, NExT, All rights reserved 35

    Applied P dh B Fi ld

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    Geology

    Prudhoe Bay Field Development & Production

    Copyright 2008, NExT, All rights reserved 36

    Applied P dh B Fi ld

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    Geology

    OOIP 22 Billion Barrels

    Estimate Ultimate in9.6 Billion Barrels (Rf = 44%)

    Prudhoe Bay Field Summary

    Copyright 2008, NExT, All rights reserved 37

    1997 13.0 Billion Barrels (Rf = 59%)

    Note:38%

    more oil to be produced due to improvedgeological understanding and improved technology