A Lab ExerciseANDREW M. GOODLIFFE

Oil and Gas Exploration Project

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 classEmphasizes student collaboration – both within and between

teamsIntroduces an economic factor – this appeals to many business

majorsCompetitive

Not everyone likes this!

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!

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)

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

The Lab

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

Profile location

$60,000 worth of data….

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

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%)