8/12/2019 01C - The Importance of Oil & Gas

1/11

8/12/2019 01C - The Importance of Oil & Gas

2/11

Ch. 1 - 47

What is oil?

really light, with a

lot of dissolvednatural gas

gooey, like asphalt

Usually it issomewhere inbetween: a black,stinky liquid

Spindletop gusher, 1901

8/12/2019 01C - The Importance of Oil & Gas

3/11

Ch. 1 - 48

How Much Oil Do We Use?

The world consumes 82 million barrels of oil per year

At that rate, you could fill Crater Lake Oregon in 4 years!

1148 feet deep

6 miles across

8/12/2019 01C - The Importance of Oil & Gas

4/11

Ch. 1 - 49

What Is Natural Gas?

Methane: CH4

The lightestcomponent of oil

The worldconsumes 100trillion cubic feet

per year!

Imagine a balloon20 miles indiameter!

8/12/2019 01C - The Importance of Oil & Gas

5/11

Ch. 1 - 50

Quiz : Where do oil & natural gas occur innature?

a) Between the grains in rocksb) In large underground pools

c) Close to hot magma in volcanoes

How do we get oil & gas

8/12/2019 01C - The Importance of Oil & Gas

6/11

Ch. 1 - 51

How Do We Get Oil & Gas?

Shalefull of

carbon-rich goods

Lots of heat

Lots of pressure

Oil forms in the shale Oil rises upwardwhy?

sand

wateroil

gastop seal

salt

Deepwater Gulf of Mexico

8/12/2019 01C - The Importance of Oil & Gas

7/11

Ch. 1 - 52

Getting Oil Out of the Ground

Quiz : Which is better for oil extraction?

= sand = oil

matter

(a) (b) (c)

8/12/2019 01C - The Importance of Oil & Gas

8/11

Ch. 1 - 53

Unconventional Oil Resources

Barnett Shale, TX

Shale looks like this.

Bad for oil & gas extraction!

Make cracks in the rock.

Fill cracks with sand!

Oil flows out!

8/12/2019 01C - The Importance of Oil & Gas

9/11

Ch. 1 - 54

A Barrel of Crude Provides:

Gasoline - 19.5 gallons

Fuel Oil - 9.2 gallons

Jet Fuel - 4.1 gallons

Asphalt - 2.3 gallons

Kerosene - 0.2 gallons

Lubricants - 0.5 gallons

Petrochemicals,other products - 6.2 gallons

One Barrel =

42 gallons

American Petroleum Institute, 1999

8/12/2019 01C - The Importance of Oil & Gas

10/11

Ch. 1 - 55

Human

resources

InvestmentsProject

Management

Technology

Reservesand

resources

Markets

In Oil & Gas Industry,We Compete for Common Resources

8/12/2019 01C - The Importance of Oil & Gas

11/11

Ch. 1 - 56

The Oil & Gas Industry Challenges

To find and develop deepwaterreserves Accelerate the incorporation of

proven reserves Accelerate the start of production

Ensure availability of required drillingrigs

through the incorporation of thirdparties

To explore subsalt prospects,mainly in offshore plays

To apply enhanced oil recoveryprocesses in mature fields

To develop extra-heavy oilreserves in a profitable manner

To increase project managementsskills

To develop low permeabilityreservoir

Deepwater

SAL

SAL

SAL

SAL

SAL

SAL

Salt

Geologic faults

Reservoir

Subsalt