Introduction to Petroleum Engineering - Lecture 1-28-09-2012 - Final

7/22/2019 Introduction to Petroleum Engineering - Lecture 1-28-09-2012 - Final

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BEng (Hons) Petroleum Engineering

Course:

Introduction To Petroleum Engineering

Instructor

Dr. Tarek Darwich


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Course Outlines: What is Petroleum Engineering?

The Life Cycle of Oil and Gas projects,

Origin, formation and accumulation of Petroleum,

Oil & Gas Exploration,

Appraisal of Oil & Gas Discoveries,

Development of Oil & Gas Discoveries,

Producing Oil & Gas Fields, Transportation of Oil & Gas,

The Petroleum Industry & the Environment,

Petroleum Economics.

I ntroduction to Petroleum Engineer ing

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Instructor: Dr. Tarek Darwich BSc, MSc (Cairo University) and PhD & DIC (Imperial

College) all in Petroleum Engineering.

Part-time Lecturer at the University of Portsmouth

Petroleum Engineering Manager at New African GlobalEnergy (NewAge)

Industrial Experience with: Sasol, Gaz de France, Noble

Energy, ENAP/SIPETROL, Qatar Petroleum, W S Atkins &various consultancy roles.

Academic Experience with Imperial College, KuwaitUniversity & Cairo university.


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What does Petroleum Mean? Petroleum means Rock Oil. The word comes from the Greek word

Petrameaning Rock and the Latin word Oleummeaning oil.

Crude Oil is a mixture of hydrocarbons that exist in liquid phase

in underground reservoirs and remains liquid at atmosphericpressures.

Natural Gas is a mixture of hydrocarbon compounds and somenon-hydrocarbons that exist either in gaseous phase or in solution

with oil in underground reservoirs.

Petroleum products (e.g. gasoline, Kerosene, .) are all thesubstances made of Petroleum.


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What is Petroleum Engineering? An engineering discipline concerned with the activities

(mainly subsurface) related to the production ofhydrocarbon (crude oil and natural gas).

It is the application ofall types ofengineering to thedrilling and production of oil & gas

It is considered mainly to be associated with the

UPSTREAMsector of the oil & gas industry.


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Surface & Subsurface Hydrocarbon Activities


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Surface & Subsurface Hydrocarbon Activities


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Upstream, Midstream & Downstream in the Oil Business


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The Upstream of the Oil & Gas Industry

Also called E & P (Exploration & production).

It covers all the activities from the search of oil & gasresources to the field point of sale of the hydrocarbon.

This includes: exploration activities, drilling, production, fieldprocessing and field storage of hydrocarbon.

It is the most critical element of the industry as it has the biggest

capital expenditures (> US$500 billion/year).

It carries a lot of risk related to the huge uncertainties during theexploration phase and hazards during the drilling and productionphases.


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The Midstream & downstream of the Oil &

Gas Industry There is no agreement on the definition of midstream and

downstream activities!!

Generally, downstream activities mainly include gas

distribution/sale, Petroleum Products distribution & storage andPetroleum products retail.

Midstream is the bridge between oil & gas production and the endusers. It involves mainly gathering & transportation of natural gasand crude oil.

Gas Processing & Oil refining are considered by some as part ofthe downstream activities and by others as midstream activities.

What is an integrated oil company and what is an

independent oil company? Give examples?


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What is the Role of the Petroleum Engineer?

The Petroleum Engineer is involved in nearly all theactivities of the Upstream oil and gas industry.

He/She is a crucial member of a team responsible formaximising oil and gas recovery at minimum cost in asafe way and taking care of the environment. (whoare the other team members?)

The Petroleum Engineer may be a production engineer, areservoir engineer, a drilling engineer or a processengineer.


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Qualities of Petroleum Engineers?


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Where Can We Find Oil and Gas?


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The Oil & Gas Industry Worldwide


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The Oil & Gas Industry worldwide

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Offshore UK - North Sea Onshore UKNorth East Hampshire


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Onshore Canada - Shale Gas Onshore PNG


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KuwaitPipeline ConstructionA Refinery in Kuwait


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The Life Cycle of Oil and Gas Projects

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Licence Award

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1. Exploration Phase Exploration is the first stage for any company considering drilling

in an area.

Since there is no way to be absolutely certain where oil and gas

reservoirs are located, companies use technology to pinpointthese potential resources with ever improving accuracy.

Exploration operation usually start with geologic evaluation toidentify underground structures where oil and/or gas may haveaccumulated.

Understanding the geology of an area is essential to knowing if apetroleum system is present.


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1. Exploration Phase

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Seismic AcquisitionDrilling a geological Structures


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2. Site Survey Federal, state, county, tribal and local permits are required to

drill for (or produce) oil and gas.

During the permit process, environmental, archaeological,

surface and aquifer use issues should all be addressed.

Operators are required to adhere to hundreds ofregulations, andmeet a wide range ofstandards and requirements before drillingbegins.

Right of way (RoW) corridors should be acquired in onshorelocations. A ROW authorises the use of specific piece of land forspecific facilities for specific period of time.


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2. Site Survey


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Drilling pad preparationExample of drilling permit process


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3. Exploration Drilling Drilling a well is a highly coordinated event usually planned by the

operating company and conducted by drilling contractors.

Drilling is costly and therefore optimisation of time is essential.

Continual drilling can provide greater integrity of the wellborereducing the risk of problems that might occur.

Time required for drilling a well is highly variable depending on the

geology of the area, rig capability, depth and size of the hole,supply management, weather conditions, ..

Exploration drilling is very risky because of the lack of sufficientinformation before drilling the wells.


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3. Exploration Drilling


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Offshore Drilling Rig

Onshore Drilling Rig
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3. Exploration Drilling


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Drilling Project Structure


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4. Appraisal Drilling The objective of appraisal drilling is to collect more information

that help the operator make the decision to go ahead with fielddevelopment or not.

Also, it is important to collect data that help in efficientdevelopment of the field.

Less riskier than exploration drilling because of the informationcollected from the exploration well

Step-in or step-out approach

May involve drilling one or more than one well depending on thesize of the oil and gas accumulation.


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4. Appraisal Drilling


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Step-Out Appraisal

Step-in AppraisalAppraisal well

Discovery well


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4. Field Development The most important and costly decision in the life cycle of the

project. All internal and external approvals have to be obtainedfirst.

A Field Development Plan (FDP) document has to be produceddetailing the forward plan and showing the project economics. AFinal Investment Decision (FID) is to be taken by topmanagement.

The two main activities during field development are developmentdrilling and facilities construction.


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5. Field Production The time when revenues start coming in

It lasts for tens of years

The main objective during this stage is to optimise production andidentify any future investment opportunities within the field.

Information collected during production is important to revise theFDP and all subsurface models

Special attention is given to the environment and the communities


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The Life Cycle of Oil and Gas ProjectsEnvironmental Impact


It is VERY IMPORTANTto minimise any adverse impact on the environment

Documents

Introduction to Petroleum Engineering - Lecture 1-28-09-2012 - Final