INTRODUCTION TO

PETROLEUM

ENGINEERING

PETR 2001 1

Instructor

2

� Name: Nicole Ramcharan

� E-mail: nicole.ramcharan@utt.edu.tt

� Tel #: 642-8888 Ext.

� Office Hours: Any day/Anytime on Canvas

� Canvas: https://utt.instructure.com

� Now you…

Week Topic Date

1 Introduction to Petroleum Engineering 1 Sep 2015

2 Reservoir Fluids 8 Sep 2015

3 Petroleum Geology 15 Sep 2015

4 Exploration Technology 22 Sep 2015

5 Drilling Overview 29 Sep 2015

6 Drilling Overview 6 Oct 2015

7 Basic Well Completions 13 Oct 2015

8 Reservoir Properties 20 Oct 2015

9 Recovery Mechanisms 27 Oct 2015

10 Reserves 3 Nov 2015

11 Production Operations 10 Nov 2015

12 Well Interventions 17 Nov 2015

13 Study Days Nov 24-25

Final Exams Nov 26-Dec 10

INTRODUCTION TO PETROLEUM ENGINEERING

History of Oil

Ancient Oil

� At least 6,500 years ago, people living in the marshes of what is now Iraq learned to add bitumen to bricks and cement to waterproof their houses against floods.

� Soon people realized that bitumen could be used for anything from sealing water tanks to gluing broken pots.

� By Babylonian times, there was a massive trade in this “black gold” throughout the Middle East, and whole cities were literally built with it.

� This primitive industry spread from the Middle East to China with the discovery of oil while drilling wells to obtain salt water from which salt could be obtained.

Early Distillation

� Petroleum Distillation techniques was discovered by the Arabs in the Middle East about 2,000 years ago.

� At first, people were only interested in the thick, sticky form of bitumen that was good for gluing and waterproofing. A thinner form called naft (giving us the modern word naphthalene) burst into flames too readily to be useful.

� By the 6th century BCE, the Persians had realized that naft could be lethal in battle. Persian archers put it on their arrows to fire flaming missiles at their enemies.

� Much later, in the 6th century CE, the Byzantine navy developed this idea further. They used deadly fire bombs, called “Greek fire,” made from bitumen mixed with sulfur and quicklime. The city of Alexandria in Egypt was burned during warfare using this.

Illumination

� Up until the 1850s, oil seepages were collected in various parts of the world for medicinal purposes using primitive oil-gathering methods involving skimmings and oil-soaked rags.

� Fuel lamps used animal grease, vegetable fat, camphene, town gas and whale oil. Whale oil had the highest quality and was the most expensive.

� The need for a cheap illuminant (primary) and lubricant (secondary) started entrepreneurial innovations to meet these needs in the late 1840s and early 1850s.

The Drake Well

� New York lawyer George Bissell (1812–84) was sure that liquid oil below ground could be tapped by drilling. He formed Seneca Oil and hired Edwin L. Drake (1818–80), a retired railroad conductor, to go to Titusville, Pennsylvania, where water wells were often contaminated by oil.

� On August 28, 1859, Drake’s men drilled down 70ft and struck oil to create the US’s first oil well. This well eventually produced 8 barrels per day.

� It is dated as the birthday of oil industry in US. Though, James Williams had completed the first commercially producing oil well one year earlier and oil seekers in Azerbaijan did the same few years earlier. Drake went one step further and he proved that oil could be obtained in sufficient quantities to meet the increasing demand by drilling through rock.

� It should also be noted that wells were also being drilled in Canada andTrinidad.

Expansion

� After Drake’s discovery, excitement and activity developed in the region, and hundreds of wells were drilled in northwestern Pennsylvania through the 1860s and the balance of the century.

� Some of these produced as high as 3,000 barrels per day [STB/day]

Standard Oil

� Early oil industry, highly competitive – many players

� Standard Oil (SO) emerged as dominant firm based in the US–gained by cost reduction and aggressive but legal tactics

� SO first modern corporation – legal entity with limited liability and bureaucratic structure

� By the mid 1880s, Standards had also moved into marketing and controlled about 80%, almost comparable to the 90% control of the refining.

� An innovation made to make marketing more efficient and lower cost was the railway tank car which eliminated the need to pile bulky, leaky, awkward and expensive barrels into boxcars.

Distillation – Modern Oil

� The modern oil age began in 1853, when a Polish chemist named Ignacy Lukasiewicz discovered how to do this on an industrial scale. In 1856, he set up the world’s first crude oil refinery at Ulaszowice in Poland.

� Canadian Abraham Gesner (1791–1864) had managed to make kerosene from coal in 1846, but oil yielded it in larger quantities and more cheaply.

� Kerosene quickly replaced the more expensive whale oil as the main lamp fuel in North America and Europe. The rising demand for kerosene produced a scramble to find new sources of oil—especially in the US.

Oil for Illumination

� Oil and the kerosene lamp changed life and the clock by which the world lived.

� Kerosene was by far the most important refinery product.

� Other products included naphtha, gasoline (then used as a solvent or turned into gas for illuminating buildings), fuel oil, and lubricants for moving parts in trains, railway cars, agricultural equipment, cotton spindles and petroleum jelly.

Spindletop

� In1901,Anthony Lucas drilled the first discovery well at Spindletop in 1901. The well blew out and it was estimated to be the largest gusher in the history of the oil industry with 100,000 barrels per day [STB/day](Modern blow-out systems now prevent uncontrolled release of oil.)

� This initial Spindletop well was followed by the first major oil boom in Texas.

� In early 1900s, oil was discovered in many regions of the world as demand for oil increased.

� By the 1960s the oil industry truly became a world industry with further developments in the Middle East, Southeast Asia, and the North Sea .

Electric Light

� The main sources of artificial light by the end of the 19th century were kerosene, gas (synthetic gas from coal or natural gas), and candles, and all had the same problems: they produced soot, dirt, and heat; consumed oxygen; and always posed the danger of fire. Thus, they posed both health and safety hazards.

� Luckily, Thomas Alva Edison, the inventor of the mimeograph, the stock ticker, the phonograph, storage batteries, and motion pictures started working on electric illumination in 1877 and within two years had developed the incandescent light bulb. By 1885, 250,000 light bulbs were in use and by 1902, 18 million.

Automobiles

� However nothing transformed the oil industry more than the arrival of the motor car in the US.

� In 1900, there were just 8,000 cars on US roads. Car ownership reached 125,000 in 1908, and soared to 8.1 million by 1920. In 1930, there were 26.7 million cars in the US—all of which needed fuel, and that fuel was gas made from oil.

� Soon speculative prospectors known as “wildcatters” were drilling anywhere in the US where there was a hint that oil might be lurking.

� Oil from California, Oklahoma, and especially Texas fueled a tremendous economic growth that soon made the US the world’s richest country.

Sherman Anti-Trust Act/ SO

� Public opinion and the political/legal system had forced competition in the petroleum industry in the US.

� In late July 1911, Standard Oil announced its plan for dissolution and divided into several different entities:

� Standard Oil of New Jersey (Exxon)-kept almost 50% of net value; Standard Oil of New York (Mobil)-kept 9% of net value; Standard Oil of California (Chevron); Standard Oil of Ohio (Sohio) (American arm of BP); Standard Oil of Indiana (Amoco); Continental Oil (Conoco); Atlantic (part of ARCO and then Sun Oil).

� Decentralization brought increased operational flexibility and liberation of technological innovation. These technological advances led to improved efficiency in the oil industry.

� A year after the dissolution of SO, shares for the successor companies doubled, and tripled. The value of all the old SO stocks doubled, and Rockefeller’s worth increased to $900 million, the equivalent of $9 billion today. (Rockefeller’s the wealthiest man of his time, and arguably the wealthiest in history.)

Present Day

� Technological and economic developments of the oil have been growing worldwide and the world is now very dependent on oil and gas resources.

Video

� History of Oil

History of Natural Gas

� The ancient "eternal fires" in the area of present day Iraq that were reported in Plutarch's writings around 100 to 125 A.D. probably were from natural gas escaping from cracks in the ground and ignited by lightning.

� First drills: Over 2,000 years ago in Sichuan, the Chinese began to drill wells. � Using bamboo tipped by iron, they were able to get at brine (salt for health and preserving food) underground.

� When they drilled very deep, they found not just brine but also oil and natural gas.

� The natural gas was burned under big pans of brine to boil off the water and obtain the salt.

History of Natural Gas

� In 1821 in Fredonia, New York, William A. Hart drilled a 27ft well in an effort to get a larger flow of gas from a surface seepage of natural gas.

� For most of the 1800s, natural gas was used almost exclusively as a fuel for lamps. Because there were no pipelines to bring gas into individual homes, most of the gas went to light city streets.

� After the 1890s, however, many cities began converting their street lamps to electricity. Gas producers began looking for new markets for their product.

History of Natural Gas

� In 1855, Robert Bunsen invented a burner that mixed air with natural gas. The "Bunsen burner" showed how gas could be used to provide heat for cooking and warming buildings.

� It took the construction of pipelines to bring natural gas to new markets. There were very few pipelines built until after World War II in the 1940s.

� Improvements in metals, welding techniques and pipe making during the War made pipeline construction more economically attractive. (Today, the U.S. pipeline network, laid end-to-end, would stretch to the moon and back twice.)

History of Oil in T&T

History of Oil in T&T

� 100 Years of Oil Production (MEEA video)� Early Years https://youtu.be/Ucyt52-mo2o

� Defining Years https://youtu.be/vuY_nznevqY

� The history of oil exploration in Trinidad goes back to the 19th century, when the first oilwell was drilled in Trinidad in 1866.

� Commercial production began in 1908.

� Over the years, more than 100 oil companies have been involved in the petroleum industry.

� History of Oil in Trinidad – Krishna Persad

� Crude Oil Reserves as of 2011

� Proved / million barrels : 728.3

� Probable/ million barrels : 334

� Possible/million barrels : 1,560

� Avg. T&T production/bopd : 101,169

� World proved reserves/

billion barrels : 1469.6

� T&T proved reserves ≈ 0.6 billion barrels

CRUDE OIL RESERVES

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Oil Production (bbls/day) Gas Production (bbls oil equivalent/day)

MMBOE/D

Average Daily Oil & Gas Production

1908- 2013

OIL PRODUCTION Avg for first 5 months 2015

COMPANY CRUDE OIL CONDENSATE

Trinmar(Petrotrin) 21,729

Petrotrin + LO/FO 22,101

bpTT 11,480

BHP 8,068

Repsol 12,875

EOG Resources 1,278

BG 1,643

TEPGL 1,040

Small companies 1,336

Total 67,149+ 14,401 = 81,550

NATURAL GAS PRODUCTION Avg. for Year to April 2015

CompanyGas Production

MMscfd

bpTT 2,009

BG 927

EOG Resources 544

BHP 383

Repsol 31

Petrotrin 23

Total 3,917

The Petroleum Industry

Petroleum Industry

� The Petroleum Industry may be defined as “that industry where a well is drilled through the rock structure of the earth to a sub-surface reservoir of the resource [hydrocarbon], and, by some means, that resource is caused to flow into the well to be produced back to the surface.”

Organization/Sequence of the Modern Petroleum Industry

� Exploration

� Production

� Transportation

� Refining and Petrochemicals

� Marketing

� Consumer

The oil and gas chain.mp4

Production

� Production in the industry is now divided into two categories:

� Upstream Operations: which are considered to be Exploration and Production, or those operations to the point of metering the produced resource into the transportation system.

� Downstream Operations: which refers to operations which occur beyond the point of metering the produced resource into the transportation system. These include transportation, refining and petrochemicals, marketing, and delivery to the consumer.

T&T’s Petroleum Industry

� In Trinidad, wells range in depth from less than 100′ to over 15,000′.

� If oil is found and there is sufficient pressure at depth, the oil is allowed to now via pipelines into a storage tank.

� In areas of low formation pressure, oil is produced by the use of submersible pumps.

� Most of our land wells are pumping wells, whereas the offshore wells are mostly flowing wells.

� From the storage tanks the oil is pumped to the refinery (Pointe-a-Pierre or Point Fortin) for processing. In the case of the East Coast on, it is pumped into tankers for export.

Refining

� In Trinidad we export our east Coast oil as crude and pipe the rest to our local refineries for processing.

� The total refining throughput capacity in Trinidad is approximately 330,000 bopd.

� At present only 85,000 bopd is being refined.

� The main products produced at our refineries are fuel oil, 94solene, kerosene, aviation fuel, lubricants, and greases.

Marketing

� BPTT markets its own oil — it ships all its East Coast crude to a special refinery in the United States.

� Most of our locallv produced refined oil is sold to Caricom and the Eastern Seaboard States of the United States of America.

� National Petroleum Marketing Company Limited handles all aspects of marketing.

Petroleum Engineering

Petroleum Engineering

� Petroleum Engineering may be defined as the use of applied physics and chemistry to extract hydrocarbons from the ground and produce them safely in a stable form into the stock tank.

� Petroleum Engineering is divided into different disciplines:� Geophysicists and Geologists� Petrophysicists� Drilling Engineers� Logging Engineers� Completion Engineers� Production Engineers� Reservoir Engineers

Petroleum Engineering Disciplines

� Geophysicists and Geologists locate, identify and map reservoir rocks. They use a range of tools to do this with the primary one for the geophysicist being the velocity of sound in rocks and fluids.

� The Petrophysicist studies the fine details of the rocks to assist in identification of heterogeneties that will reduce the production or containment of hydrocarbons in these rocks.

� The Drilling Engineer [and the drilling department] will drill the well to bring oil and/or gas to the surface. They are concerned with the mud program, the cementing program, the casing program and the fracture mechanisms of the underground rocks.

Petroleum Engineering Disciplines

� The Logging Engineer conducts and interprets the electric and radioactive logs that will identify hydrocarbon vs. water and also oil vs. gas.

� The Completion Engineer will design the right completion that will efficiently allow the oil and gas to flow from the reservoir into the wellbore without undue production of reservoir particles [sand].

� The Production Engineers are responsible for the safe and efficient production of the hydrocarbons. This will entail producing the wells at the optimum rate of installing artificial lift [such as sucker rod pumps, gas lift etc.] to lift the fluids to the surface.

Petroleum Engineering Disciplines

� The Reservoir Engineer is responsible to quantify the amount of oil and gas that exists in the underground reservoirs within the lease boundaries that the company owns or has leased and how much of it can or will be produced i.e. reserves.

� The Reservoir Engineer is also interested in the recovery factor that one can achieve from a reservoir. Also, how long these reserves will take to be produced from the reservoir and determination of production life of the reservoir.