Introduction to Petroleum Engineering


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Introduction to Petroleum Engineering

  1. 1. INTRODUCTION What is oil and gas engineering? Oil and gas engineering is a field of engineering concerned with the activities related to the production of hydrocarbons, which can be either crude oil or natural gas . There are four main engineering which focus on maximizing economic recovery of hydrocarbons from subsurface reservoirs which is, offshore engineering, subsea engineering, petroleum engineering and earth scientist. Petroleum engineering focuses on estimation of the recoverable volume of this resource using a detailed understanding of the physical behavior of oil, water and gas within porous rock at very high pressure while earth scientist make research to gain knowledge and brings theory for engineers’ usage. The combined efforts of geologists and petroleum engineers throughout the life of a hydrocarbon accumulation determine the way in which a reservoir is developed and depleted, and usually they have the highest impact on field economics. Petroleum engineering requires a good knowledge of many other related disciplines, such as geophysics, petroleum geology, formation evaluation (well logging). Before all, we want to give our credit to Mr. Ikhwani Uzair, as he had given us enough time and references to guide us throughout this assignment. We hope this assignment satisfied your guide lines. Page 1 Thank you 
  2. 2. HISTORY AND RESEARCHES In history perspectives the used of oil based product were recorded in the earliest writing of man which is: 3000 BC Sumerians use asphalt as an adhesive for making mosaics. Mesopotamians use bitumen to line water canals, seal boats, and build roads. Egyptians use pitch to grease chariot wheels, and asphalt to embalm mummies. 1500 BC The Chinese use petroleum for lamps and for heating homes. 600 BC Confucius writes about the drilling of 100-foot (30-meter) natural gas wells in China. The Chinese build pipelines for oil using bamboo poles. 600-500 BC Arab and Persian chemists mix petroleum with quicklime to make Greek fire, the napalm of its day. 1200-1300 AD The Persians mine seep oil near Baku (now in Azerbaijan). 1500-1600 AD Seep oil from the Carpathian Mountains is used in Polish street lamps. The Chinese dig oil wells more than 2000 feet (600 meters) deep. 1735 AD Oil is extracted from oil sands in Alsace, France. Early 1800s Oil is produced in United States from brine wells in Pennsylvania. 1847 James Oakes builds a “rock oil” refinery in Jacksdale, England.6 The unit processes 300 gallons per day to make “paraffin oil” for lamps. James Young builds a coal-oil refinery in Whitburn, Scotland.7 1848 F.N. Semyenov drills the first “modern” oil well near Baku. 1849 Canadian geologist Abraham Gesner distills kerosene from crude oil. 1854 Ignacy Lukasiewicz drills oil wells up to 150 feet (50 meters) deep at Bóbrka, Michael Dietz invents a flat-wick kerosene lamp (Patent issued in 1859). Page 1857 2 Poland.
  3. 3. 1858 Ignacy Lukasiewicz builds a crude oil distillery in Ulaszowice, Poland.8 The first oil well in North America is drilled near Petrolia, Ontario, Canada. 1859 Colonel Edwin L. Drake triggers the Pennsylvania oil boom by drilling a well near Titusville, Pennsylvania that was 69-feet deep and produced 35 barrels-perday. 1859 An oil refinery is built in Baku (now in Azerbaijan). 1860-61 Oil refineries are built near Oil Creek, Pennsylvania; Petrolia, Ontario, Canada; and Union County, Arkansas. Scientific researches Scientist has defined oil and gas as follow: “Oil and gas are called hydrocarbon because they are compounds of atoms oh hydrogen and Page 3 carbons. Depending on the mixtures of HC molecules, it is differs on colors and composition”
  4. 4. OIL AND GAS ENGINEERING DICIPLINES Some of the disciplines in the industry arose as a result of offshore activity. These include: Subsea Pipeline Engineer – Develops field architecture, flow line configurations and designs for subsea development studies; Supports Preparedness Response Strategies and strategies for pipelines and jumpers within the operating subsea facilities. Offshor e Design Engineer – Performs structural engineering analyses and design for riser systems and topsides structural modules in major projects development from the conceptual detail engineering and construction stage. Undertake front-end engineering studies, as required, to identify and develop Page 4 performance improvement changes.
  5. 5. PROCESS AND DEVELOPMENT EXPLORATION STAGE EXPLORATION is about finding oil and gas fields. Main goal is to identify and deliver commercially viable field development opportunities. The following geological and geophysical (G&G) activities would take place: - Conduct seismic surveys - Process and interpret the seismic data and map the potential reservoir - Select exploration well locations - Drill and evaluate exploration well data - Core analysis to establish porosity and permeability - Logging data to determine porosity, water and hydrocarbon saturation - Production test data to determine flow rates and maximum production potential - PVT to allow reservoir fluid analysis and ascertain oil/gas quality and the shrinkage or expansion factor - Build a computer model or the reservoir and identify and where possible major uncertainties by further data analysis, seismic reprocessing etc. APPRAISAL STAGE Exploration phase of life cycle closely intertwines with the next stage of processing which is Appraisal. The objective of APPRAISAL is to obtain information about the reservoir in order to make a decision whether or not to proceed with development of the field. This stage comprises of the following activities: - Planning and execution of a data acquisition program of additional seismic - Reprocessing existing seismic data to obtain enhances results and the drilling of appraisal wells - Evaluation of the results from the seismic and appraisal drilling activities - Using the information from the seismic and drilling programs to update the computer reservoir simulation models Conduct initial conceptual field development planning and an Environmental Impact Assessment 5 (EIA) study of these conceptual plans Page -
  6. 6. DEVELOPMENT STAGE The initial phase of field development planning could involve the assessment of more than one development option. Four components of development plan can be used to describe each option: - Reservoir: number, location, type of wells; assessment of oil recovery mechanism; assessment of production over the development stage - Wells: the design of wells to meet production requirements - Facilities: process facilities, infrastructure, terminal/export facilities - Operating and Maintenance strategies: manning level, daily production level, support requirements (for example is helicopter), supply vessels PRODUCTION STAGE Production stage is a phase targeting at bringing the well fluids to the surface and preparing them for use in refinery or processing plant. All production and maintenance activities would be carried out to meet strict safety and environmental policies and procedures. The main activities consist of the following: - Regulate production and injection to meet approved plans for the quantity and quality of product - Monitor and record all information to manage the reservoir, wells and facilities - This could lead to further reservoir development or modifications to the facilities - Plan and schedule all production and maintenance activities to minimize production deferment and operating costs Carry out maintenance to safeguards the technical integrity of all wells and facilities and ensure 6 their availability over the life of the field. Page -
  7. 7. DECOMMISSIONING/ABANDONMENT PHASE The end of the life of the field is when it is no longer economic for the operator to continue production (when the operating costs exceed the revenue from the sale of production). It is common around the world that operator might abandoned the field prior to its depletion as a result of sale to other interested party. Such as acquisition takes place between the super major operating company and independent oil company when production declines to the level not commercially attractive to the super-major. It is becoming increasingly common around the world that offshore facilities must be dismantled and removed and the site restored to the original condition. The major activities during the decommissioning phase are: - Plug and abandon well by putting cement plugs into the wells at various depths and remove the well-head and casing to a depth of about 2 meters below the surface or seabed - Dismantle and remove the jacket and all facilities from the site, ensuring that there is no contamination of the environment from any oil or waste material remaining in the process facilities. - Conduct a final environmental impact study. 7 Restore the site to its original condition Page -
  8. 8. Page 8 Sub sea
  9. 9. Life Cycle  Life cycle of processing of oil field consist of 5 stages 1. Exploration 2. Appraisal 3. Development 4. Production 5. Abandonment Oil Refineries Oil refineries are the key to obtain hydrocarbon. Oil in deferent parts of the world contains different proportions of the various types of hydrocarbon. There are refineries in many part of the UK including Edinburgh, Liverpool and Milford Haven. North Sea oil is relatively high in 9 naphtha, which is used for making plastics while Malaysia’s petroleum Page 
  10. 10. Petroleum Processing Stage Before we go on to talk about petroleum processing, it is important to know something about petroleum itself. Petroleum is called a fossil fuel because it is formed from the bodies of ancient organisms – primarily one celled plants and animals. Contrary to modern myth, only a tiny fraction (if any) of the molecules in crude oil are from dinosaurs. When these creatures died, their remains accumulated at bottoms of ancient lakes or seas, along with sand and other sediments. Over time, a combination of pressure, heat, and bacterial action transformed the deposits into sedimentary rock. The incorporated organic matter was transformed into simpler chemicals, such as hydrocarbons, water, carbon dioxide, hydrogen sulfide, and others. The chemicals didn’t always stay put. If the surrounding rock was porous, liquids and gases could migrate, either up to the surface or into a reservoir that was capped by impermeable rock or a dome of salt. Today, when petroleum geologists look for oil, they actually are looking for structures that might be traps for liquid hydrocarbons. the hydrocarbon molecules usually are heavier. In China and South Africa, a significant amount of coal is converted into synthesis gas, which is used to make chemicals and/or synthetic petroleum. In Canada, oil Page In solid sources of fossil fuel – coal, oil shale, oil sands and tar sands – the mineral content is higher and 10 Figure 1 : Petroleum Reservoir
  11. 11. sands are converted into more than 700,000 barrels- per-day of synthetic petroleum, which is sent to conventional oil refineries in Canada and the United States. Due to its origin, crude oil is a complex mixture containing thousands of different hydrocarbons. As the name implies, hydrocarbons are chemicals containing hydrogen and carbon. In addition to hydrogen and carbon, most crude oils also contain 1 to 3 wt% sulfur along with smaller amounts of nitrogen, oxygen, metals, and salts. The salts can be removed with a hot-water wash (see Section 2), but the other major contaminants – sulfur, nitrogen, oxygen and metals – are harder to remove because they are linked to hydrocarbons by chemical bonds. Crude oils from some wells are as clear as vegetable oil. Other wells produce green, brown or black crudes. Some taste sour or smell like rotten eggs. Some flow as easily as water, others don’t flow unless they are heated, and some are so solid they have to be mined. Table 1 compares properties for 21 selected crudes. Traders characterize a crude by citing its source, API gravity (a measure of density), and sulfur content. The source is the oil field from which the crude was produced. The API gravity is a rough indication of distillation properties, which determine how much gasoline, kerosene, etc., can be distilled from the crude. Along with other factors, the sulfur content affects processing costs. Figure 3 shows that light crudes (those with high API gravities) often contain less sulfur and nitrogen than heavy crudes, but not always. Page 11 Table 1: Properties of 21 Selected Crude Oils
  12. 12. Figure 2. Sulfur and nitrogen versus API gravity for selected crude oils All refineries are different. They have different histories, locations, and market drivers. Therefore, no single illustration can capture all of the possible combinations and permutations of the processes that fit together to comprise an oil refinery. But despite their differences, most refineries perform the seven basic operations named in the list below. There are seven basic operations in Petroleum Processing. • Distillation • Alkylation • Asphalt • Catalytic reforming •Catalytic polymerization Protecting the Environment • Solvent refining • Steam/hydrocarbon reforming Conversion Treating, finishing, blending • Waste water treatment • Carbon removal Rearrangement • Gasoline, kerosene and diesel • Disposal of solids • Isomerization • Hydrogen addition • Lubes and waxes • Sulfur recover 12 Reforming Page Separation Combination
  13. 13. Figure below will explain to you how a simplified layout for a high-conversion refinery in the United States. The diagram doesn’t show product blending and sulfur recovery units, but these are almost always present. Lube-oil processing and hydrogen production units also may be present. The depicted plant is configured for maximum fuels production. In a typical European refinery, the coker would be replaced with a visbreaker. In many Asian refineries, where diesel demand is higher than gasoline demand, the coker would be replaced by a visbreaker and the FCC by a hydrocacker. Figure 3. Typical layout for an oil refiner y Separation Dist illat ion In terms of throughput, the biggest unit in most plants is the Crude Distillation Unit (See figure plant may be required. Page in a coker, hydrocracker, or FCC unit, an atmospheric tower, a vacuum tower, and a multi-column gas 13 below). Many downstream conversion units also use distillation for production separation. For example,
  14. 14. At mospheric Dist illat ion Crude oil distillation is more complicated than product distillation, in part because crude oils contain water, salts, and suspended solids. To reduce corrosion, plugging, and fouling in crude heaters and towers, and to prevent the poisoning of catalysts in downstream units, these contaminants are removed by a process called desalting. The two most typical methods of crude-oil desalting – chemical and electrostatic separation – use hot water to dissolve the salts and collect suspended solids. In chemical desalting, water and surfactants are added to the crude, heated to dissolve salts and other impurities, and then sent to a settling tank where the water and oil separate. In electrostatic desalting, chemicals are replaced with a strong electrostatic charge, which drives the separation of water from oil. Figure 4 : Crude Distillation Modern crude distillation towers can process 200,000 barrels of oil per day. They can be up to Page trays in the top section are replaced with structured packing. 14 50 meters tall and contain 20 to 40 fractionation trays spaced at regular intervals. In some towers, the
  15. 15. Before reaching the tower, desalted oil goes through a network of pre-heat exchangers to a fired heater, which brings the temperature up to about 343°C. If the oil gets much hotter that this, it starts to crack and deposit carbon inside the pipes and equipment through which it flows. The hot crude enters the distillation tower just above the bottom. Steam is added to enhance separation; it does so largely by decreasing vapor pressure in the column. When hot oil enters the tower, most of it vaporizes. Unvaporized heavy fuel oil and/or asphalt residue drops to the bottom of the tower, where it is drawn off. The vapors rise through the distillation trays, which contain perforations and bubble caps (Figure 3). Each tray permits vapors from below to bubble through the cooler, condensed liquid on top of the tray. This provides excellent vapor/liquid contacting. Condensed liquid flows down through a pipe to the hotter tray below, where the higher temperature causes re-evaporation. A given molecule evaporates and condenses many times before finally leaving the tower. Products are collected from the top, bottom and side of the column. Side draw products are taken from trays at which the temperature corresponds to the cut point for a desired product. In modern towers, a portion of each side draw stream is returned to the tower to control tray temperatures and further enhance separation. Part of the top product is also returned; this “reflux” flow plays a major role in controlling temperature at the top of the tower. After leaving the tower, product streams go to holding tanks or directly to downstream process units. Products can include heavy fuel oil, heating oil, kerosene, gasoline, and uncondensed gases. bubble-cap trays Page Distillation column with 15 Figure 5 :
  16. 16. CAREERS OPPURTUNITY Once you have completed your Masters in Petroleum Geosciences and Engineering, you will be equipped with skills and knowledge that enable you to solve future tasks and challenges related to the exploration and production of oil and gas. There are great work opportunities within the traditional as well as the future oil industry. Possible work places such as at international oil companies, consultancy firms and service providers. A completed study also forms a good basis for a future career as a researcher. There’s a lot of job opportunity in this field such as piping layout designer, drilling engineer, subsurface engineer, fitter, and many more. Job Outlook Employment of petroleum engineers is expected to grow 17 percent from 2010 to 2020, about as fast as the average for all occupations. Oil prices will be a major determinant of employment growth, as higher prices lead to increasing complexity of oil companies’ operations and require more engineers for each drilling operation.  Environmental Engineering & Science – Research for crude oil well, and to make sure environment is not affected too serious during the petroleum extracting process happen.  Reservoir engineers – Work to optimize production of oil and gas via proper well placement, production rates, and enhanced oil recovery techniques.  Drilling engineers – Manage the technical aspects of drilling exploratory, production and injection wells.  Production engineers, including subsurface engineers – Manage the interface between the reservoir and the well, including perforations, sand control, down hole flow control, and down hole monitoring equipment; evaluate artificial lift methods; and also select surface equipment that separates the produced fluids (oil, natural gas, and water).  Chemical engineers – Manage the petroleum refining process and make sure the process run well and effectively to reduce cost and chemical waste. Forbes Magazine in 2010. Statistics taken based on employers that having Bachelor’s Degree in Petroleum Engineering and worked at United States. 16 The median annual pay for petroleum engineers was USD114080 in May 2010 according to Page Pay
  17. 17. ANALYSIS, MARKETING AND ISSUES PETRONAS at a Glance PETRONAS, the acronymn for Petroliam Nasional Berhad, was incorporated on 17 August 1974 under the Companies Act, 1965. It is wholly-owned by the Malaysian Government and is vested with the entire ownership and control of the petroleum resources in Malaysia through the Petroleum Development Act, 1974. Over the years, PETRONAS has grown to become a fully integrated oil and gas corporation and is ranked among the FORTUNE Global 500® largest corporations in the world. Oil, Gas and Energy –National Key Economic Area (NKEA)  Oil and Gas sector is expected to generate RM131.4 billion in Gross National Income by 2020, (5% annual growth) in the period from 2010 to 2020.  12 entry point projects (EPPs) have been identified under the oil, gas and energy sector.  These EPPs have been developed across 4 themes to raise sector‟s output and meet energy demands over the 10 year time frame. The themes are: –Making Malaysia the number one Asian hub for oil field services, especially Deepwater –Building a sustainable energy platform for growth Page –Enhancing growth in downstream 17 –Sustaining oil and gas production
  18. 18. Oil, Gas and Energy –12 Entry Point Projects  Rejuvenating existing fields through enhanced oil recovery  Developing small fields through innovative solutions  Intensifying exploration activities  Building a regional oil storage and trading hub (GIFT)  Unlocking premium gas demand in Peninsular Malaysia  Attracting MNCs to bring their global oil field service and equipment operations to Malaysia  Consolidating the domestic fabricators  Developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures  Improving energy efficiency  Building up solar power capacity  Deploying nuclear energy for power generation  Tapping Malaysia’s hydroelectricity potential Formation of Malaysia Petroleum Resource Corporation (MPRC)  An agency under the Prime Minister’s office  Provide direction and advice to domestic and global oil and gas companies –maximize their investment and growth opportunity  MPRC takes a strategic long-term approach –Asia Pacific hub by 2017  MPRC –set up Industry Consultative Council (ICC) –to address and resolve industry issues Page 18  MPRC –instrumental in launching of incentives
  19. 19. Malaysia’s hydrocarbon reserves stand at 20.56 billion Barrels of Oil Equivalent (BOE) with an average production of 1.63 million BOE per day (Petronas report 2010). Page Producer in the world 19 Malaysia is the 28th Oil
  20. 20. OIL AND GAS PROSPECTS Nowadays petroleum has been the most important source of energy to human daily life. It is used to generate power on many kind of vehicles from small sizes such as motorcycle to the bigger size like airplane, rocket and ship. Not only that, it is also used to generate electrical power at certain country which still using petroleum energy to generate power station. So, there is too many prospects for oil and gas user. Malaysia has approximately 615,100 square kilometers of acreages available for oil and gas exploration. Of these, 218,678 square kilometers or 36% of the total acreages are currently covered by Production Sharing Contracts. Exploration drilling in Malaysia by the Production Sharing Contractors has resulted in the discovery of 163 oil fields and 216 gas fields. Many significant discoveries were made in shelfal shallow waters as well as in deepwater environments. Increasingly, new discoveries have been made through new play-types such as fractured basements, pinnacle reefs, low Sulphur content and turbidities. Application of new technologies have also greatly contributed to exploration successes, especially in deepwater areas Crude oil which is petroleum before being processed can be sold worldwide. This situation happened in Malaysia which is Petronas extracted our local petroleum and sell to other countries. This is because of our petroleum high in quality and less quantity of nitrogen that can prevent pollution and slow down the breakage to the engine. This type of petroleum can be sold to the petroleum processing company such as Shell, Exxon-Mobil, and many more. Processed petroleum is petroleum that done undergo distillation process. This type of petroleum can be classified into many types such as alkane, alcohol, diesel, kerosene, and much more. This type of petroleum can sold direct for people’s daily usage. Example is kerosene is used to generate airplane engine. At Malaysia, kerosene is also used to burn pelita for Malay festival called Hari Raya. Diesel used to generate power for/busses and lorries while alcohol is used widely for perfume production. Here we can conclude that there are too many prospects in oil and gas production. People who involve in oil and gas industry basically get a large amount of salary. This is because petroleum is Page 20 important source to human daily life.
  21. 21. REFERENCES Internet http:/// Books 1. Krishna G Bhattacharrya and Anup K Talukdar, Catalysis in Petroleum and Petrochemical Industries, Narosa Publishing House. Mumbai, 2008 2. H. K. Abdel-Aal, Mohamed Aggour, M. A. Fahim, Petroleum And Gas Field Processing, Marcel Dekker. New York, 2003 3. James H. Gary, Glenn E. Handwerk, Petroleum Refining Technology and Economics, Marcel Dekker. USA, 2001 4. Dr. Clifford Jones, The 2010 Gulf Oil Spill, Venture Publishing. UK, 2010 5. Paul R. Robinson, Petroleum Processing Overview, PQ Optimization Services Inc. Texas, 2006 People 1. Ir. Muhammad Rizal Bin Abdullah – Philips Malaysia Engineer Page 21 2. Faridah Binti Nizarif – Petroleum Engineer at Foxboro Malaysia