Petroleum Development Geology 010_introduction

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YOGYAKARTA, JUNE 2008

MM DARISSALAM


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References & Sources of Presentation Materials

Shlumberger : Oil Field Review, Short Courses & Promotions slides,Manuals, Publications, etc.

Baker Hudges : Publications & Manuals Halliburton : Published slide and books

Publications & In-house Training materials from: TOTAL, Chevron,Texaco etc.

AAPG & SPE journals & slides bank

Literatures: Development Geology P Dikey

Development Geology Reference Manuals AAPG

Petroleum Engineering Hand Books: Amyx, Craft, Campbel, etc.

Log Analysis Books : Batteman, Dewan, Helander etc Petroleum Reservoir, Stratigraphy and Tectonic Books : ..

Note : Due to the rush preparation of these presentation slides, the sources andreferences are not noted yet.


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PRESENTATION OUTLINEI.

INTRODUCTION

II. WELLSITE GEOLOGYIII. LOG INTERPRETATION

IV.

WELL TESTING

V. PETROLEUM RESERVOIRENGINEERINGVI.

CORRELATIONS & MAPPING

VII. RESERVES ESTIMATIONVIII. RESERVOIR SIMULATION

IX.

PLAN OF DEVELOPMENT

X. RESERVOIR MANAGEMENT &PROJECT ECONOMIC


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I. INTRODUCTION

1.

COURSE OBJECTIVE

2.

UPSTREAM PETROLEUM INDUSTRY &DEVELOPMENT GEOLOGIST

3. PETROLEUM GEOLOGYa. SOURCE ROCKS & MATURATION

b.

HYDROCARBON MIGRATION

c.

CAP ROCKS / SEALS

d.

STRUCTURE / TRAP

e.

RESERVOIR ROCKS & FLUID

4.

DRILLING


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COURSE OBJECTIVECOURSE OBJECTIVE

To introduce participants the generalTo introduce participants the generalpetroleum industrial processes andpetroleum industrial processes and

especially during oil/gas fieldespecially during oil/gas field

development phasedevelopment phase

To provide participants the basic ofTo provide participants the basic of

petroleum development/productionpetroleum development/productiongeology as entry provisions intogeology as entry provisions into

upstream petroleum industryupstream petroleum industry

Sharing knowledge andSharing knowledge and silaturachmisilaturachmi


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PETROLEUM INDUSTRY SECTORSPETROLEUM INDUSTRY SECTORS

Concession AcquiringEXPLORATION

DEVELOPMENTPRODUCTION

TRANSPORTATION

OIL REFINEMENT /PROCESSING

UPSTREAMUPSTREAM

DOWNSTREAMDOWNSTREAM

HIGH RISK

HIGH REWARD

HIGH INVEST.

LOW RISK

LOW REWARD

HIGH INVEST.

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Transporting PetroleumTransporting Petroleum

Oil FieldOil Field

Oil FieldOil Field

PipelinePipeline RefineryRefinery

PipelinePipeline

Railroad Tank CarsRailroad Tank Cars

Mobil

Tank TruckTank Truck

ConsumersConsumers

IndustrialCustomers

IndustrialCustomers

LocalDistributorLocalDistributor

Mobil

TankerTanker

OffshorePlatformOffshorePlatform

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Refining PetroleumRefining Petroleum

GasolineGasoline

Fuel GasFuel Gas

Kerosene Jet FuelKerosene Jet Fuel

HeatingOilHeatingOil

LubricatingOilLubricatingOil

Residual ProductsAsphalt,Heavy Fuel Oil

Residual ProductsAsphalt,Heavy Fuel Oil

Crude OilVaporCrude OilVapor

Liquid Crude OilLiquid Crude Oil


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EXPLORATION PHASE DEVELOPMENT PHASE

G&G STUDY

SEISMIC SURVEY

DRILLINGS

PLAN OF DEVELOPMENT

G&GR STUDY

DEV. DRILLING, WORKOVER

PRODUCING, EOR etc.

ADL SEISMIC

MARKETING


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UPSTREAM PETROLEUM LIFE CYCLE

PROUON

T M

EXPLOR TIONDEVELOPMENT

SECOND RYRECOVERY B NDONMENTB NDONMENT

CONVENTIONAL


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PROUON

T MEXPLOR TION

DEVELOPMENT SECOND RY RECOVERY B NDONMENT

CONVENTIONAL

Development & Operation GeoscientistsDevelopment & Operation Geoscientists

Exploration

Geoscientists

Exploration

Geoscientists

GeophysicistsGeophysicists


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SYNERGIC TEAM N UPSTREAM OIL INDUSTRY

Geologists Reservoir Engineer

Prod

uction

Eng

ineer

Surface Prod. Eng.,

Processing Eng.,

Transportation

Eng. & Marketing

DEVELOPMENT GEOLOGIST

Reservoir CharacterizationReserves Estimation

Reservoir Optimization


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Development Geology = Production Geology = ReservoirGeology

Hybrid discipline: geology on the field and reservoir scale.

Principal Responsibilities of The Development Geologist(DG): Estimation of Volumetric Reserves Justifying drilling & workover options to improve recovery Plan and acquisition geological data while drilling & production Providing a framework for maximum financial return for his

company

DG requires good knowledge of many disciplines : Structural Geology.

Stratigraphy and sedimentology. Reservoir engineering. Drilling methods and engineering. Petrophysics.

Laboratory for rock and fluid Seismology. Petroleum Economics and management.

Petroleum Development Geology


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What is a petroleum explorationdevelopment geologists?

EXPLORATION GEOLOGIST DEVELOPMENT GEOLOGISTDISCOVERS HYDROCARBON

RESERVES

Technical and functional expertiseon regional geology

(basin /

petroleum system analysis, tectonicand stratigraphy), geophysical(acquisistion, processing and

interpretation), computer and othertechnical

DEVELOPES & PRODUCESHYDROCARBON

Technical and functional expertiseon reservoir geology, log

interpretation, detailed correlation& mapping of flow unit, basicpetroleum engineering, drilling, field

operation, computer and othertechnical

Additional: Financial awareness

understanding the business. Project

management, team work, achieving results skills Interpersonal,communication, serving skills


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WHY COMPANY SHOULD HAVE A DEVELOPMENT GEOLOGISTEngineers, Geologists and

Geophysicists dont just specialize in

different fields, they think in differentways.

There is a communication problem:the development geologist must be

able to bridge the gap.


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Geophysical Processing

E&P Management

DrillingEngineering

ReservoirEngineering

Geoscience

Bridging the Disciplines Enhanced operational efficiencies through new,multi-discipl inary workflows


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responsibility of the DG in

PREDEVELOPMENT EVALUATION

After field discovery :

Evaluate field forreserves, well

placement anddesign criteria.


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DEVELOPMENT DRILLING

DG is responsible for:

Initiating development

well recommendations

Decide what reservoirgeological data should

be collected and prepare

the geological prognosis

Monitoring these wells

during drilling

Adjusting development

plans as wells are drilled


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WELL SURVEILLANCE

Generally handled by the reservoir engineer (RE)

However, when performance is not as expected or whenremedial work is required (workover, stimulation &

optimization) the DG inputs geological constraint.

RE & DG work together to

evaluate unusual reservoir

performance.

RE & DG then make

remedial recommendations



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FIELD STUDIES

One of the most importantroles of the DG :

Re-evaluation of old fieldsand recognition of newopportunities in these

fields. This role will become

increasingly important in

the future as reservesdecrease.

Improved oil recovery as

well as enhance oilrecovery.


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CONCLUSION Development geology is not only a

rewarding, but a lucrative field for thesmall and independent operator.

In the future, this field (whichrequires skills in many oil/gas fields)will become more important as

reserves decline. The bottom line in all petroleum

exploitation is financial andeconomic evaluations require input

from many disciplines: the DG musthave these skills.

The most important ability isRESERVES ESTIMATION andRESERVOIR OPTIMIZATION.

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Petroleum Development Geology 010_introduction