2. • Introduction to petroleum industry:
• World petroleum resources,
• petroleum industry in India.
• Brief review of petroleum origin, its
composition and classification.
• Exploration: Meaning, methods of
exploration.
• Drilling: Concept of drilling, various drilling
operations e.g. cable drilling, rotary drilling,
directional drilling.
• Transportation of crudes and their products.
3. Oil is a natural resource formed by the decay of organic
matter over millions of years. And like many other natural
resources, oil cannot be produced, only extracted where it
already exists. Unlike every other natural resource, oil is
the lifeblood of the global economy.
The world derives over a third of its total energy
production from oil, more than any other source by far. As
a result, the countries that control the world’s oil reserves
often have disproportionate geopolitical and economic
power.
4. 15. Brazil
• Proven oil reserves: 12.8 billion barrels (0.8% of world total)
• 2017 daily oil production: 2.7 million barrels
• 5 yr. oil production change: +27.5%
• GDP per-capita: $15,553
14. Qatar
• Proven oil reserves: 25.2 billion barrels (1.5% of world total)
• 2017 daily oil production: 1.9 million barrels
• 5 yr. oil production change: -1.2%
• GDP per-capita: $128,647
China
• Proven oil reserves: 25.7 billion barrels (1.5% of world total)
• 2017 daily oil production: 3.8 million barrels
• 5 yr. oil production change: -7.4%
• GDP per-capita: $16,842
Kazakhstan
• Proven oil reserves: 30 billion barrels (1.8% of world total)
• 2017 daily oil production: 1.8 million barrels
• 5 yr. oil production change: +10.2%
• GDP per-capita: $26,491
5. Nigeria
• Proven oil reserves: 37.5 billion barrels (2.2% of world total)
• 2017 daily oil production: 2 million barrels
• 5 yr. oil production change: -17.6%
• GDP per-capita: $5,887
Libya
• Proven oil reserves: 48.4 billion barrels (2.9% of world total)
• 2017 daily oil production: 865,000 barrels
• 5 yr. oil production change: -42.7%
• GDP per-capita: $19,673
United States
• Proven oil reserves: 50.0 billion barrels (2.9% of world total)
• 2017 daily oil production: 13.1 million barrels
• 5 yr. oil production change: +46.6%
• GDP per-capita: $59,928
United Arab Emirates
• Proven oil reserves: 97.8 billion barrels (5.8% of world total)
• 2017 daily oil production: 3.9 million barrels
• 5 yr. oil production change: +14.7%
• GDP per-capita: $74,035
6. Kuwait
• Proven oil reserves: 101.5 billion barrels (6% of world total)
• 2017 daily oil production: 3 million barrels
• 5 yr. oil production change: -4.5%
• GDP per-capita: $72,096
Russian Federation
• Proven oil reserves: 106.2 billion barrels (6.3% of world total)
• 2017 daily oil production: 11.3 million barrels
• 5 yr. oil production change: +5.6%
• GDP per-capita: $25,763
Iraq
• Proven oil reserves: 148.8 billion barrels (8.8% of world total)
• 2017 daily oil production: 4.5 million barrels
• 5 yr. oil production change: +46.8%
• GDP per-capita: $16,935
Iran
• Proven oil reserves: 157.2 billion barrels (9.3% of world total)
• 2017 daily oil production: 5 million barrels
• 5 yr. oil production change: +30.4%
• GDP per-capita: $20,885
Canada
• Proven oil reserves: 168.9 billion barrels (10% of world total)
• 2017 daily oil production: 4.8 million barrels
• 5 yr. oil production change: +29.2%
• GDP per-capita: $46,510
7. Saudi Arabia
• Proven oil reserves: 266.2 billion barrels (15.7% of world total)
• 2017 daily oil production: 12 million barrels
• 5 yr. oil production change: +2.7%
• GDP per-capita: $53,893
Venezuela
• Proven oil reserves: 303.2 billion barrels (17.9% of world total)
• 2017 daily oil production: 2.1 million barrels
• 5 yr. oil production change: -22%
• GDP per-capita: N/A
8. • Petroleum—or crude oil—is a fossil fuel that is
found in large quantities beneath the Earth's
surface and is often used as a fuel or raw
material in the chemical industry. It is a
smelly, yellow-to-black liquid and is usually
found in underground areas called reservoirs.
• http://www.petroleum.co.uk/
9. World Petroleum resources
• It has significant proven reserves—some 80
billion barrels, approximately 6 percent of the
world total—and is one the world's leading
petroleum producers. ... Sedimentary basins
and major oil and gas fields of Europe, Russia,
Transcaucasia, and Central Asia.
• United Arab Emirates. ,United States,
Libya,Nigeria
• Kazakhstan,China. ,Qatar. Brazil.
10. • Venezuela has the largest amount of oil
reserves in the world with 300.9 billion
barrels. Saudi Arabia has the second-largest
amount of oil reserves in the world with 266.5
billion barrels.
• Barrel
• A volume measure equal to 42 U.S. gallons or
approximately 160 liters.
11. • Country Million barrels per day Share of world total
• United States 18.60 20%
• Saudi Arabia 10.82 11%
• Russia 10.50 11%
• Canada 5.26 6%
12. • Oil Reserves by Country
• #Country World Share
• 1Venezuela 18.2%
• 2Saudi Arabia 16.2%
• 3Canada 10.4%
• 4Iran 9.5%
13. • The three largest producers of mineral oil or
crude oil in India are
• Rajasthan (23.7%),
• Gujarat (12.5%),
• Assam (12.1%).
• Among these three states Assam is the
largest producer of mineral oil in India.
14. • As of December 01, 2020, India's oil refining
capacity stood at 259.3 million metric
tonnes (MMT), making it the second-largest
refiner in Asia.
• Private companies own about 35.29% of the
total refining capacity in FY20. In FY20, crude
oil production in India stood at 32.2 MMT.
• Maharatna ONGC is the largest crude oil and
natural gas Company in India, contributing
around 71 per cent to Indian domestic
production
15. Petroleum Industry in India
• India's current refining capacity stands at 249
MMTPA, comprising of 23 refineries—18 under
public sector, 3 under private sector and 2 in a
joint venture. Indian Oil Corporation (IOC) is the
largest domestic refiner with a capacity of 70
MMTPA. Top three companies – IOC, Bharat
Petroleum Corporation (BPCL) and Reliance
Industries (RIL) - contribute around 66.3% of
India's total refining production from FY 2018 -
19.
16. • 33,764 Km Natural Gas Pipeline Network
across the country has been authorized with
the aim to create a national gas grid. About
19,998 km of Natural Gas pipeline are
operational and 15,369 km are under
progress.
• India has witnessed a steady increase in
production as well as consumption of
petroleum products over the years. The
production of petroleum products stood at
262.94 MMT in year 2019-20.
17. • Crude oil production during July 2021 was
2,548.78 TMT and Cumulative crude oil
production during April-July 2021 was
9,961.65 TMT.
• Natural gas production during July 2021 was
2,891.96 MMSCM and Cumulative natural gas
production during April-July 2021 was
11,060.07 MMSCM
• 74 lakh new LPG connections were issued by
OMCs in FY20-21.
18. • Liquefied Natural Gas (LNG) supply is forging
ahead on both coasts with 5 new LNG
Terminals and 1 expansion project under
construction - 3 on the west coast and 2 on
the east coast. Together with the projects
under construction, overall capacity will reach
62.5 MMTPA.
19. • India is the third largest energy and oil consumer
in the world after China and the US.
• India is the 4th largest importer of liquefied
natural gas (LNG).
• India consumed 213.13 MMT petroleum
products and 64.14 BCM natural gas in FY 2019-
20, marking a growth of 0.4% and 5.5% over the
FY 2018-19 consumption levels. India’s projected
oil demand is going to grow at CAGR of 4% during
2016
- 2030 against the world average of 1%, though
the projected oil demand will be much lower as
compared to the US and China.
20. Petroleum origin
• Inorganic or Abiotic origin
• States that hydrogen and carbon came together
under great temperature and pressure, far below
the earth’s surface and formed oil and gas where
chemical reactions have occurred.
• oil and gas then seeped through porous rock to
deposit in various natural underground traps
• It has also excluded the hypothesis that
petroleum is a finite substance.
21. • Metal carbide theoryDeveloped by a Russian
chemist and states that the deposition of
petroleum is controlled by tectonic activities
that occurred during the life of sedimentary
rock. To explain his observations, he has put
forth "metal carbide theory". Metal carbides
deep in Earth reacted with water at high
pressure and temperature to form acetylene
which condenses to heavier
hydrocarbons.Reaction equation is:
Cac2+H2O= C2H2+Ca(OH)2
22. • Organic origin
• It is the most widely accepted.
• The oil and gas are formed from remains of prehistoric plants and
animals.
• Remains of plants have been transformed to coal and animals to
oil and gas.
• These remains were settled into seas and accumulated at the
ocean floor and buried under several kilometers of sediments.
• Over a few milion years, the layers of the organic material were
compressed under the weight of the sediments above them.
• The increase in pressure and temperature with the absence of
oxygen changed the mud, sand, slit or sediments into rock and
organic matter into Kerogen.
• After further burial and heating, the kerogen transformed via
cracking into petroleum and natural gas
23. • As a whole, the evidence indicates that oil is formed
slowly, in a marine or brackish-water environment,
from both marine and non-marine organic matter.
• Significant quantities of solid paraffin hydrocarbons
were found in extracts of recent marine sediments by
Trask and Wu in 1930.
• Complex mixtures of hydrocarbons were found by
Whitmore and Oakwood to be a natural product of
both marine and non-marine plants and animals.
• More recently, P. V. Smith, using chromatography,
separated organic extracts of recent marine sediments
into liquid saturated hydrocarbons, aromatic
hydrocarbons, and a fraction containing oxygen,
nitrogen, and/or sulphur derivatives of hydrocarbons.
24. • The mechanisms involved in the transformation
of this organic debris to petroleum have not been
definitely established, nor is the time required
known, since the various steps in the process
from the initial accumulation of organic matter in
sediments to the first appearance of liquid oil
have not been traced. Modern techniques of
chromatography, infrared spectrometry, and high
mass spectrometry are providing new
approaches to the problem.
•
25. • Presence of brine (sea water) with petroleum.
• Petroleum is found only in association with
sedimentary rocks. There is no petroleum
associated with igneous or metamorphic rocks.
• Polarized light passing through all petroleum
resources undergoes a rotation that is similar to
all organic oils.
• Molecules in hydrocarbons are thought to be
similar to that of the organic matter.
• The organic carbon found in plants is depleted
into C13 due to photosynthesis process.In dead
organic matter, it is further depleted due to
radioactive decaying. The same depletion was
found in petroleum and natural gas.
26. Composition
• Petroleum contains four classes of
compound: alkanes, cycloalkanes, aromatics,
and heteroatomic compounds with one or
more atoms of nitrogen, sulfur, and/or
oxygen. In petroleum chemistry and
technology, alkanes are called paraffins;
cycloalkanes, naphthenes; and the
heteroatomic compounds are lumped
together as NSOs.
27. • Hydrocarbons in Crude Oil
• There are four main types of hydrocarbons
found in crude oil.
• paraffins (15-60%)
• naphthenes (30-60%)
• aromatics (3-30%)
• asphaltics (remainder)
• The hydrocarbons primarily are alkanes,
cycloalkanes, and aromatic hydrocarbons.
28. Elemental Composition of Petroleum
• Although there is considerable variation between the
ratios of organic molecules, the elemental composition
of petroleum is well-defined:
• Carbon - 83 to 87%
• Hydrogen - 10 to 14%
• Nitrogen - 0.1 to 2%
• Oxygen - 0.05 to 1.5%
• Sulfur - 0.05 to 6.0%
• Metals - < 0.1%
• The most common metals are iron, nickel, copper, and
vanadium.
29. • Petroleum Color and Viscosity
• The color and viscosity of petroleum vary
markedly from one place to another. Most
petroleum is dark brown or blackish in color, but
it also occurs in green, red, or yellow.
• Aliphatic :
• Any hydrocarbon in chains. Includes the alkanes,
alkenes, and alkynes among many others.
• Alkanes :
• The largest class of hydrocarbons. These include
linear and branched chain molecules typically
used in the production of fuel.
30. • Aromatic Hydrocarbon :
• Any hydrocarbon that contains a dream
structure in which all of the bonds are of
intermediate character between single and
double bonds. They are often referred to as
1.5 bonds.
• Asphaltenes :
• Insoluble, semi-solid particles. They have a
high carbon to hydrogen ratio and are used in
the production of asphalt.
31. • For example, petroleum with a geographical classification from one
region of the world may be expensive to transport to another region of
the world regardless of the suitability of the raw petroleum as an overall
substance.
• In general, lighter crude commands a higher price because it contains
more hydrocarbon chains that can be easily refined to make gasoline and
diesel, which are in high demand.
• The lower the sulphur content, the higher the price as well because low-
sufur, sweet crude requires less refining.
• Classification of petroleum also indicates the best use for a particular
field of petroleum.
• One oil type is not necessarily “better” than another, but rather the
different types are useful in different applications.
• Light crude oil is preferable for refining into gasoline as it produces a far
higher yield than heavy.
• In a similar fashion, sweet petroleum is often more desirable than sour
petroleum as its use will cause far less impact on the environment in the
form of harmful emissions as it is burned.
• These basic classifications of petroleum are further enhanced by a full
molecular description gained through a crude oil assay analysis.
33. SURFACE GEOLOGY
Field studies of rock outcrops can be conducted to locate and sample
surface seeps of oil or gas, and to identify potential petroleum system
elements, including source rocks, reservoir rocks and seal rocks, as
well as evidence of potential traps.
Certain more esoteric procedures, including aerial imagery (e.g. using
drones), satellite imagery or geophysical and geochemical methods
can produce sophisticated data indicative of oil and gas occurrences,.
These methods are substantially more indirect and circumstantial
than surface outcrop field studies.
However, even the tactile and visual reality of an oil seep at a
surface outcrop does not insure the occurrence of oil, in commercial
quantities, in the subsurface.
34. SUBSURFACE GEOLOGY : -
Subsurface techniques use the same parameters as surface methods
but do not have the benefit of continuity typical of surface exposures.
For example, in the case of well data, we can sample, analyze and
characterize subsurface rock formations at discrete geographic sites,
that is, the well locations, but we must interpret the nature of the
formation in the areas between the well locations.
Subsurface data quality improves as the density of data increases.
Interpretation of subsurface geology integrates data from a number of
sources, the most common of which are well data and seismic data.
Some sources, such as well data, provide direct information and others,
such as seismic data, provide more indirect data.
35. DRILLING OPERATIONS
Wells are drilled to explore for and produce petroleum.
A standard onshore drilling rig consists of a derrick floor above
a substructure that elevates it from the ground.
The diesel engine-driven drawworks, cable and block systems
and derrick are attached to the derrick floor (Figs. 1).
A blowout preventer is installed below the derrick floor to
control high-pressure zones and to prevent equipment damage
during drilling operations.
36.
37. Offshore drilling equipment is the same as that used
onshore except that it is situated on a platform (Fig. 2),
which may rest on the sea bottom (e.g. fixed steel jacket
drilling plaform or jack-up rig)
or be attached to a floating vessel (e.g. barge, drill ship or
semi-submersible rig).
Many platform types are designed to accommodate the
drilling of multiple directional wells from a single location.
38.
39. Drill pipe, drill collars and a drill bit make up the drill string that
is lowered into the ground to drill the well (Fig. 1)
In a standard rotary drilling system, power for turning the drill
string is provided by the diesel engines through a chain drive
that turns the rotary table, which turns the “Kelly” bar, which is
connected to the top of the drill string .
In recent years, as an alternative to the standard rotary
table/Kelly drive system, many drilling rigs are equipped with a
“top drive” unit, which is a mechanical device located at the
swivel’s place, just below the traveling block.
The top drive unit turns the drill string directly and provides for
more efficient drilling operations.
40. During drilling operations, a specially prepared “drilling
mud” is pumped from the mud tanks, through the
standpipe, rotary hose, and swivel into the Kelly and the
drillstring (Fig. 3). T
he mud passes through the drillstring and exits the jets
in the bit.
It cleans and conditions the well bore as it rises to the
surface in the annulus between the drillstring and the
walls of the well bore. As drilling progresses the drill
string is extended by adding more lengths of drill pipe,
and correspondingly, the amount of mud required to
maintain the well bore is increased as the well depth
increases.
41.
42. In addition to providing lubrication for the drill bit and
transporting drill cuttings out of the hole, the drilling
mud is also used as a control for high pressure
formations encountered by the well at depth.
If high pressure zones are anticipated or
encountered, the weight of the mud is increased to
control the formation pressure.
Conversely, if low pressure or lost circulation zones
are encountered, the mud weight is reduced.
43. During the drilling of a well, rock samples from the
penetrated formations can be obtained in three ways:
1) as drill cuttings, carried to the surface by the
circulating drilling mud;
2) by coring operations, whereby a special core bit is
used to retrieve a cylindrical core sample from the
bottom hole;
and 3) by wireline, whereby specially designed tools
retrieve “sidewall core” samples from the borehole wall
during well-logging operations.
44. ELECTRIC, RADIOACTIVITY AND ACOUSTIC (SONIC) LOGGING
GEOLOGY
Once the borehole has been drilled, subsurface geological
information can be obtained by wireline well logging techniques.
Measurements are made of the electrical, radioactive and acoustic
properties of rocks and their contained fluids encountered in the well
bore.
Several types of measurements produce information on formation
rock
acoustic velocity,
density,
radioactivity,
conductivity and resistivity.
45. From this data, rock lithology, formation depth and thickness, as well
as formation porosity, fluid saturation and fluid type can be
interpreted.
Caliper logs are used to measure borehole diameter.
Geologic maps and cross-sections are readily constructed from a
variety of well log data and assist in understanding sedimentary
facies distribution, as well as formation thickness and structural
relationships.
Such maps become the basis for defining the locations of future
exploration and development drilling sites.
46. Logs are obtained by lowering a sonde or tool (Fig. 4) attached
to a cable or wireline to the bottom of a well bore filled with
drilling mud.
Different types of logging tools with a variety of sensors are
used to record a range of rock properties.
From some tools, electrical, nuclear, or acoustic energy is sent
into the rock and returns to the sonde for measurement.
The logging tools are continuously raised from the wellbore
bottom at a specific rate as the measurements are recorded,
and the well log is completed when the sonde arrives at the top
of the interval to be investigated.
47.
48. Formation water saturation , porosity, permeability radioactivity and resistivity are rock
properties that affect logging and the types of logs to be obtained.
As a wellbore is drilled the rock formations and their contained fluids are
penetrated by the bit and affected by the drilling process.
Drilling mud invades the rock surrounding the wellbore, and this can affect the
logging of the hole.
A permeable, porous formation, which has been invaded by drilling mud during the
drilling process develops parameters which influence logging tool response, and
this must be considered in log data interpretation.
Significant among these parameters, as portrayed on a generalized cross-section
of the borehole environment (Fig. 5), from the center of the wellbore outward into
the formation are: hole diameter; drilling mud ; mudcake; mud filtrate; flushed
zone; invaded zone; and uninvaded zone.
49.
50. GEOPHYSICAL SURVEYS
Several types of common geophysical surveys are in use in
petroleum exploration.
They provide some direct and some indirect structural data
for interpreting subsurface geology.
In most instances, geophysical survey methods provide no
direct indications of petroleum occurrences, although
scientific advances in recent years have led to the
development and rapid improvement of technology for the
identification of so-called “direct hydrocabon indicators” or
DHI’s, based on seismic data.
I
51. In gravity surveys, differences in the density of
crustal rocks are measured by a gravimeter.
Low density rocks are represented as negative
anomalies and high density rocks as positive
anomalies (Fig. 8). Gravity surveys are
particularly useful in exploration of salt dome
terrains. Salt domes have low density and
appear as negative closed anomalies on gravity
maps. Gravity surveys provide indirect structural
and lithologic data.
52.
53. Magnetic surveys utilize a magnetometer to measure
variations in magnetic intensity.
Basement rocks usually contain more magnetically
susceptible iron-bearing minerals.
So, for example, when basement rocks are deformed
and raised as fault blocks they are placed closer to
the ground surface and produce stronger magnetic
values (Fig. 9).
Such features appear as positive magnetic anomalies
and indirectly indicate possible basement-related
structure.
54.
55. Unfortunately, variations in the magnetic
susceptibility of the basement can be a
function of compositional differences.
Therefore, a level basement surface consisting
of a variety of rock types can produce
apparent positive anomalies, which can be
confused with structural deformation. To
overcome these problems, modeling of
magnetic data to produce plausible structural
patterns is essential to interpretation. Magnetic
surveys provide indirect structural and
lithologic data sections.
56. Seismic surveys are the best and most
definitive geophysical means of subsurface
structural and stratigraphic representation
currently in use. As described earlier, in
special instances, seismic data can also
sometimes provide direct hydrocarbon
indicators or DHI’s. However, this is still a
developing technology and these DHI’s are
very specialized and intimately related to local
geologic conditions.
57. In petroleum exploration and development,
the seismic technology most widely used is called Reflection Seismic Data.
New technology in 3-D and color rendered reflection seismic surveys is
increasingly more geologically accurate.
In the reflection seismic method (Fig. 10), waves generated by an energy
source at the earth’s surface go down into the subsurface, where they reflect
off rock layers and return to the surface, where they are received by devices
called “geophones” and recorded in a nearby computerized unit.
For onshore seismic surveys, there are two basic types of energy sources
used, explosive charges and strong vibrations created by vibrator or
“viboseis” trucks.
58.
59. Offshore or marine seismic surveys are conducted using
specially designed vessels that tow an energy source and a
group of cable-mounted detectors over the survey area. The
energy source used in marine surveys is an “air gun”, which
periodically generates waves that propagate down into the
subsurface, where they reflect off rock layers and return to
the surface, where they are received by detectors called
“hydrophones” and recorded in a computerized unit onboard
the seismic vessel. The receiving cables or “streamer
cables” towed behind a seismic vessel are about 2.5 miles
long.
60.
61. GEOCHEMICAL SURVEYS
Analysis of soil samples, river water, formation water, and oil can be useful in some exploration
programs.
â–ş Soil analyses can indicate the presence of hydrocarbons beneath the surface, although they
can indicate little about the depth of the reservoir.
â–ş Analysis of surface water from rivers and streams might be indicative of the locations of oil
seeps along the river banks. Sampling from several locations might be necessary to locate the
seeps.
â–ş Chemical analysis of subsurface formation water is often useful in correlations within a
reservoir or establishing the differentiation of reservoirs.
â–ş Oil composition analysis can provide age determinations of crude oil being produced from a
well. In many cases, this compositional data can provide a link to the source rocks that generated
the oil.
Compositional variations of crude oil are also useful in discriminating between different reservoir
horizons. In some cases, oil ages and migration histories can be also determined by oil analyses.
62. MAPS AND CROSS-SECTIONS
​Practically any type of geologic data can be represented on a map.
Some of the most useful maps are those that present clear pictures of the
distribution of geologic parameters.
A surface geologic map is an example of this because it shows the
distribution of individual rock formations over the area of the earth’s surface
covered the map.
Contour maps can be used to illustrate many important parameters, such as
rock unit or sedimentary facies thickness, or structural elevation (Figs. 12).
They show variations that are useful in interpreting the complete geology of
an area or individual characteristics within the entire data set.