petrofirst - upes freshmen orientation + spe alp
DESCRIPTION
This presentation was done on 27th Sept 2012 at University of Petroleum & Energy Studies as part of their Freshmen Orientation and SPE Ambassador Lecture ProgramTRANSCRIPT
PetroFirst
Oil & Gas Industry: Buckle Up, turbulence ahead!
Content Oil & Gas – Introduction The Industry Timeline Oil & Gas – India Outlook A Career in Oil & Gas Industry SPE – Valuable Resource for Students & YP
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Did you know…?
By the time you read this, 8000 barrels of oil will have disappeared - forever
Oil and gas isn’t found in caves underground, but in teeny-tiny holes of
sandstone rocks (mainly)
Oil ‘fields’ can easily be hundreds sq. km, and found thousand of meters deep
An average oil well is about the diameter of a drinking glass
Most of the oil we find today was created about a 100 million years ago
More than 99% of the oil ever formed has escaped and is gone forever
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Where did it come from?
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Where did it come from?
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Where did it come from?
?At least that’s what everyone thought for a really long time….27-09-2012
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Where did it come from?
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A few kilometers
The ‘Cooker’
Where did it come from?
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Where did it come from?
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Where did it come from?
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$$ …IF we can find it!
What does it look like?
Gas Oil
Water
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How do we find it?
Gravity Surveys
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How do we find it?
Magnetic Surveys
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How do we find it?
Shooting Seismic
Drill here!
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How do we find it?
Bad luck! Bad luck! Woo Hoo!
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About 1 in every 3 exploration wells is successful
If it is successful, then the following questions remain…
How big is this find…really? Do we invest in developing it?
How many wells should we drill? What kind of wells?
This field is in the middle of nowhere (they always are!) –
how do I get the oil to the customer?
What Next?
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Development & Production
1. Onshore well 5. Floating, single point mooring
2. Fixed, multi platform 6. Storage/shuttle tanker
3. Fixed, self-contained platform 7. Floating, tension leg
4. Self-contained, concrete gravity platform 8. Subsea manifolds27-09-2012
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Oil Refining – Cracking!
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Oil Refining – Cracking!
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Marketable Products
44%• Gasoline (Used to fuel cars)
19%• Heating Oil (Used to heat buildings) and Diesel Fuel
15%• Petrochemical feedstock for the manufacturing of chemicals, synthetic rubber
and plastics
8%• Jet Fuel
6%• Propane
5%• Residual Fuel Oil (powering factories, fueling large ships, and making
electricity)
3%• Asphalt
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The Industry Timeline
The story of oil & natural gas begins far back in time as long as 500 million years back!
Commercial extraction and production is a little over 150 years old! 27-09-2012
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Oil Through Ages
As early in 347 A.D. , Chinese were known to drill wells upto 800 ft. using bronze bit and bamboo polesIn 1264 Marco Polo witnessed the mining of seep oil at BakuIn 1500s seep oil mining in Carpathian Mountains of PolandHand dug mines up to 35 meters for oil at Baku in 15941735 marked by oil sand mining and extraction at Pechelbronn field in Alsace, France1802 – 1815 sees oil being produced as undesirable by – product from brine wells in United States
In 1802 in West Verginia Ruffner brothers took 18 months to drill a 58 ft. brine well
Asansol, India27-09-2012
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Ateshkah, Azerbaijan
Asansol, India27-09-2012
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Early Age of Modern Drilling
1848 was marked with first modern oil well in Aspheron Peninsula (North East of
Baku)
1854 saw first oil well in Europe at Bobrka, Poland
North America saw its first oil well in 1858 in Ontario, Canada
First Well in United States in Titusville, Pennsylvania in 1859
The Famous Drake well – publicized as first oil well
Till now all of the wells were either hand dug or percussion drilled!
Do you know? – Colonel Edwin Drake never worked in Military, he was a terminated
railroad conductor! 27-09-2012
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What did they do with it?
Chinese had found some medicinal usage of it
1500s to early 1800s, mostly used to light lamps/ street lamps
In 1849 Kerosene turned up as first distilled product of Crude Oil
Kerosene replaced Whale Oil as most preferred illuminant and created a
market for crude oil
Gasoline/Petrol was just a cheap by product of distillation process!
In 1850s crude was sold in US as a ‘cure – all medicine’ – Seneca
Oil
In 1857 Kerosene lamp was invented establishing a market for crude
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The Wizard of Menlo Park disappeared crude market !
Thomas Alva Edison pushed Crude out of demand in 1879!
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Karl Benz – The Redeemer
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The Race Begins!
Russian eminence in early 20th Century curtailed by political
turmoil
Mexico held a lead position till Queretaro Convention in 1917
Venezuela gauged situation better and came up
Wells were spurting every where in United States
Middle East came in with its huge resources
Multinationals were formed – Europe though a deficit zone
received its daily doze
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Seven Sisters
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Post World Wars
MNC Dominance continues – managed 100% of oil production and owned
80% of middle east output!
Demand reaches unprecedented heights
USA sees decline in production & begins import for the first time
Middle East production soars to new heights – Kuwait sees a boom!
Soviet Union witnesses a boom in 1950
Closing of Suez Canal in 1956 sees commencement of Africa – Algeria &
Libya become major exporters
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Technology Timeline
1896 First Offshore Well
1900s Mudding & Rotary Drilling
1910s Well Construction Methods
1920s Logging, Wireline & Testing
1930s Blowout Prevention Equipment & Seismic Exploration
1940s Platforming & ‘Out of Sight’ Offshore Drilling
Technology
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Rise of Service Companies
(as Oil Center Tool in 1927)
Weatherford Oil Well Tool Company (WOTCO)27-09-2012
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OPEC – The Lord of The Oil
Organization of Petroleum Exporting Countries (OPEC) was formed in a conference at Baghdad in 1960Founding members were: Iran, Iraq, Kuwait, Saudi Arabia & VenezuelaOPEC looked at earning more profit for itself from MNCsOPEC currently comprises of members with Qatar (1961), Indonesia (1962), Libya (1962), UAE(1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) & Angola (2007)Oil Industry nationalization bid started in Middle East in 1970s
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The Infamous Embargo
In 1973 Gulf States met in Kuwait and Arab Oil Embargo begins
A ban was imposed on export to USA, Canada & Netherlands
Price was raised by 70% and production was cut
Power shift was happening from MNCs to OPEC!
MNCs tried to thwart the impact by redirecting oil from other
resources
Actions lead to hastening of nationalization
Saudi Arabia did not nationalize at that time
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Rise of NOCs
Russia
Iran
Brazil
Malaysia
Venezuela
China
Saudi Arabia
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Rise of NOCs
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In The New Millennium
Through rough weathers and political turmoil
Unprecedented Consumptions and Demand
Technology Boom!
Offshore conquered
Liquid to Gaseous fuel shift
Attention to unconventional resources
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Demand & Supply
EIA’
s Int
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rgy
Out
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2
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Demand & Supply
EIA’
s Int
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Out
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2
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Demand & Supply
EIA’
s Int
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rgy
Out
look
201
2
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How bright is the future?
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The Elephant Walk – India Outlook
According to Oil & Gas Journal (OGJ), India had approximately 5.7 billion barrels of proven oil reserves as of January 2011, the second-largest amount in the Asia-Pacific region after China.
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Grim News..
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Beg – Borrow – Steal!
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Don’t worry, Be happy!
Coal Bed Methane (CBM)• CBM policy in 1997 to boost development• Policy designed to be liberal and investor friendly• First commercial production in July 2007 at about 7200 cubic meters a day • Development of CBM field in Damodar Valley, Sohagpur and Tanjavur
Underground Coal Gassification (UCG)• Technology first used in US in 1800s and in India in early 1900s• Only feasible technology available to harness energy from deep unminable coal seems• Reduces capital outlay, operating cost and output gas expenses by 25 – 50 per cent compared
to surface gassification
Gas Hydrates and Bio – Fuels
• National Gas Hydrate Programme (NGHP), a consortium of national E & P companies and research institutions, to map gas hydrates for use as an alternate source of energy
• Bio – fuels (bio – ethanol and bio – diesel) are alternate sources of energy from domestic renewable resources; these have lower emissions compared to petroleum or diesel
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Opportunities!
Upstream Segment• Locating new fields for
exploration; 78% of the country sedimentary area is yet to be explored
• Development of unconventional resources; CBM fields in the deep sea
• Opportunities for brown/mature field development
• Increased demand for skilled labour and oilfield services and equipment
Midstream Segment• Expansion in the
transmission network of gas pipelines
• LNG imports have increased significantly; provides an opportunity to boost production capacity
• In light of mounting LNG production, huge opportunity lies for LNG terminal operation, engineering, procurement and construction services
Downstream Segment
• Development in city gas distribution (CGD) networks, which are similar to Delhi and Mumbai CGDs
• To construct new refineries considering advantages such as low operation costs, lesser freight charges and favourable prices
• Expansion of the country’s petroleum product distribution network
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Growth Drivers
Growing Demand
India is fifth largest energy
consumer
Rise in population and
economic growth fuel demand
Increase industrialization and usage of gas
Policy Support
Supportive FDI policies
Promotion of investments in
the factor
Introducing policies such as CBM and NELP
Increasing Investment
FDI grew 111% in 2011
Cumulative FDI in oil & gas totalled USD 3,159 million
Huge investments
planned under Eleventh Plan
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Major Players!
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Career in Oil & Gas Industry
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Core Industry
Upstream
Midstream
Downstream
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Who is a Petroleum Engineer?
Petroleum engineering requires a good knowledge of many other related disciplines, such as:
Reservoir EngineerProduction EngineerDrilling Engineer
Geology & Geophysics Drilling Engineering
Formation Evaluation Artificial lift systems
Reservoir simulation Oil & gas facilities engineering
Well engineering Economics
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Hard Work & The Money Sack
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Hard Work & The Money Sack
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What employer wants?
Analytical & Innovative
Dynamic and Eloquent
Purist – Detailist – Applicationist
Hard Working & Adaptable
Salesman of the year!
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Profile Management
Only marks won’t help!
Employer hires an Engineer not a Student!
Set yourself apart!
Show your character – Prove your mettle!
Back your words with your act!
Work from now!
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Go Global
You are in a highly globalized industry
Your employer could be sitting in any corner of the world
And so is your competition
Go out & get an idea of your battlefield
Network – Network – Network!
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Society of Petroleum Engineers Valuable Resource for Students & YP
SPE (Young Professional) Mumbai Chapter
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SPE Membership – Did you know?
Total Members: 104,000+
Average Age (Over past 3 years): 46
YP Members (i.e. < 35): 20,000+
Student Members: 29,000+
<20 20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65++
* n/a
0.00%
5.00%
10.00%
15.00%
20.00% Membership by Age Range
Age Range
Perc
enta
ge o
f Tot
al
Mem
bers
hip
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What is in it for you?
For Students For YPsStudent Chapters Local Section YP Programs
Scholarships YP AwardsAmbassador Lecture ProgramYoung Professional Network
OnePetroThe Way Ahead & JPT Online The Way Ahead & JPT
Student Paper Contests YP WorkshopsStudent Development Committee YP Coordinating Committee
eMentoring
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Did it help me?
Ofcourse it did!
World of opportunities!
Resources and more resources!
A peek of real competition!
Rubbing shoulders with who’s who!
SPE as a differentiator!
Never lose the link!
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Should you join ?
It’s free!…Student membership is industry fundedIt provides direct link to the industry
MentorsPotential EmployersTechnical Resources and Masters topicsScholarshipsNetworking
Expand your horizonsImprove your leadership skillsPlay your part in addressing global issues
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We Need You!
Deliver energy to the world
Be the helping hand & guiding eye
Find ways to produce and use hydrocarbons
more efficiently
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Thanks for being a wonderful audience!
BEST OF LUCK FOR YEARS AHEAD !
Neelendra NathPetroFirst Solutions
[email protected] +91 9510 228 545
PetroFirst
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