This document provides an overview of the upstream oil and gas sector, including definitions and classifications of crude oil, natural gas, and their resources. It discusses the composition and properties of crude oil, how it is classified based on density, and estimates of global reserves and production. Unconventional resources like heavy oil, oil sands, shale gas, and methane hydrates are introduced. Country-specific data on reserves and production in regions like the Americas, Middle East, and Colombia are presented. The document concludes with a brief discussion on the large global potential of unconventional gas resources and the water requirements for hydraulic fracturing operations.

1. Upstream Sector

2. Introduction
Agradecimientos.
CPIQ
“El Consejo Profesional de Ingeniería Química de Colombia es una entidad
creada por la Ley 18 de 1976 y su Decreto Reglamentario 371 de 1982,
encargada de otorgar las matrículas y expedir las tarjetas profesionales,
realizar seguimiento y control del adecuado ejercicio de la profesión,
colaborar con las autoridades universitarias y profesionales y apoyar las
actividades de las asociaciones gremiales, científicas y profesionales de la
Ingeniería Química.”
Source Internet: CPIQ Web Page

3. Hydrocarbon Industry Sectors
Upperstream
Midstream
Downstream
Exploration and production (E&P)
Transportation (Crude or Refined)
Source Internet Boletin SAO . Association of American Railroads, Bloomber, Ecopetrol
Refinig of Petroleum

4. Petroleum or Crude Oil
Petroleum comes from Greek Petra-Rock and elaoin-Oil or Latin Oleum-Oil)
also Crude Oil, sometimes called Black Gold. Petroleum is a Hydrocarbon
Natural Mixture.
Source Internet Various

5. Natural Gas
Natural gas is a hydrocarbon gas mixture consisting primarily of
methane, but commonly includes varying amounts of alkanes and
butanes and even a lesser percentage of carbon oxide, nitrogen
and hydrogen sulfide (sour gas).[
Source Internet Various

6. Crude Oil and Natural Gas
Crude Oil (Oil) has Natural Gas. Oil is non renewable resources because they
cannot be replenished on human time frame. They also called fossil fuel
because they is thought where formed from dinosaurs.
Source Internet Various

7. Crude Oil and Natural Gas
Biotic theory: Petroleum is the
remains of organic material that
was deposited, usually in marine
environments, millions of years
ago.
Abiotic theory:
Deep in the crust or in the mantel of
the earth, bacteria may make oil
abiotically, that is from sources that
were never alive.
Hydrogen plus carbon dioxide with the
help of archaea yield methane plus
water.
archaea
Source Theories for The Origen of Oil by Mike Westlund

8. Crude Oil Resources
Reserve
Salt Mine
OPEC´s ASB 2013 2012 world reserves
Emerald Vein

9. Crude Oil Resources
Source: Internet

10. Crude Oil Resources – Native Fluids
Single Anticlinal
Reservoir Rock
Reservoir Rock
Complex Faulted
•
•
•
•
Source: Internet Copyright © 2010-2014 - San Joaquin Valley Geology
Porosity
Permeability
Saturation
Grain size

11. Crude Oil Resources
Exploratory well
Source: SPE PRM 2011
Exploratory
And Appraisal Wells

12. Crude Oil Resources
Assessment of Reserves
Source: SPE PRM 2011

13. Crude Oil Resources
Recoverable Reserves
Recoverable reserves is also often
called proved reserves.
A term used in natural resource
industries to describe the amount of
resources identified in a reserve that
is technologically or economically
feasible to extract. A new reserve
can be discovered, but if the
resource cannot be extracted by any
known technological methods, then
it would not be considered part of
recoverable reserves.
Source: SPE PRM 2011

14. Crude Oil Resources - Production

15. Crude Oil Resources – Year over Year Balance
Produced
(-)
New Proved
2011
Year End
Balance
±
Discovery
(+)
$$$
=
2012
Year End
Balance
$$$$
EOR
(+)

16. OPEC Share of World Crude Oil Reserves 2012

18. OPEC Members´ 2012 Midyear Population
Country
2008
2009
2010
2011
2012
Algeria
34,591
35,268
35,978
36,717
37,800
Angola
16,368
16,889
17,430
17,992
18,577
Ecuador
13,805
14,005
14,307
14,483
15,500
IR Iran
72,584
73,651
74,733
75,150
76,520
Iraq
30,578
31,664
32,490
33,339
34,207
Kuwait
3,442
3,485
3,582
3,697
3,824
Libya
6,150
6,263
6,378
6,295
6,411
Nigeria
151,212
154,727
158,057
162,799
167,683
Qatar
1,447
1,639
1,715
1,733
1,774
Saudí Arabia
27,787
26,661
27,563
28,376
29,196
United Arab Emirates
8,074
8,200
8,264
8,328
8,394
Venezuela
27,732
28,181
28,629
29,072
29,517
Total OPEC Members
391,769
400,634
409,127
417,982
429,402
Source OPEC´s ASB 2013

19. Oil and Gas Reserves – Per Capita
Source OPEC´s ASB 2013

20. New World Energy Map - Reserves
Conventional Reserves
Thousands of Millions of BBL
Shale Gas
Billions of SCF

21. New World Energy Map
Source EIA and ARI

22. Natural Gas Proved Reserves LAR ( Billions of Cubic Meters)
Country
2008
2009
2010
2011
2012
1
Venezuela
4,983
5,065
5,525
5,528
5,563
2
Brasil
380
365
358
417
434
3
México
359
359
339
349
360
4
Perú
415
415
345
353
359
5
Argentina
428
399
379
359
333
6
Bolivia
750
750
695
281
281
7
Colombia
114
124
134
153
155
8
Chile
46
46
45
43
41
Source OPEP´s : Desarrollo Peruano

23. Proved Reserves Thousands Millions of Bbl.
Country
2009
2010
2011
2012
2013
1
Venezuela
99
99
211
211
298(*)
2
Saudi Arabia
267
262
263
267
268
3
Canada
178
175
175
174
173
4
Iran
136
138
137
151
155
5
Iraq
115
115
115
143
141
6
Kuwait
104
104
104
104
104
7
United Arab Emirates
98
98
98
98
98
8
Russia
60
60
60
60
80
9
Libya
44
44
46
47
48
10
Nigeria
36
37
37
37
37
11
Kazakhstan
30
30
30
30
30
12
China
16
20
20
20
26
13
Qatar
15
25
25
25
25

24. Oil Demand Thousands of Barrels per Day (k b/d)
Country
2008
2009
2010
2011
2012
1
United States
19,498
18,771
19,180
19,949
18,555
2
China
7,468
8,540
9,330
8,924
9,324
3
Japan
4,788
4,406
4,465
4,480
4,720
4
India
2,864
3,113
3,255
3,426
3,441
5
Saudi Arabia
1,980
2,195
2,371
2,986
3224
6
Brazil
2,205
2,481
2,622
2,793
2,933
7
Russia
2,906
2,950
2,992
2,725
2,725
8
Germany
2,545
2,453
2,470
2,400
2,338
9
Canada
2,232
2,153
2,258
2,289
2,327
10
Korea,South
2,142
2,188
2,268
2,230
2,268
11
Mexico
2,161
2,071
2,080
2,133
2,147
12
Iran
1,742
1,766
1,726
2,028
2,088
13
France
1,945
1,868
1,881
1,792
1,738
Source US Energy Information Administration

25. World Oil Demand NAR and LAR (1000 b/d)
Source OPEC´s ASB 2013

26. World Proven Crude Oil Reserves NAR and LAR (millions barrels)
Source OPEC´s ASB 2013
Lasting time =
ଶǡ
ଶ଴଴ ௜ ௟ ௢௡ ௕௔௥௥௘௟
௠ ௟ ௜ ௢௙
௦
್ೌೝೝ೐೗
೏ೌ೤
ଵ ௠ ௜௟
௟ ௢௡௦
∗ଷ଺ହ (
೏ೌ೤ೞ
)
೤೐ೌೝ
= 6 years

27. How much is there?
World reserves stood at 1,478,211 (*) millions of barrels. Word demand is about 76
millions of barrel per day. At this rate, the oil will last about 53 years.
Lasting time
Lasting time
Source OPEC´s ASB 2013
ଵǡ
ସ଻଼ǡ
ଶଵଵ ௜ ௟ ௢௡ ௕௔௥௥௘௟
௠ ௟ ௜ ௢௙
௦
್ೌೝೝ೐೗
೏ೌ೤
଻଺ ௜ ௟
௠ ௟ ௢௡௦
೏ೌ೤ೞ
)
೤೐ೌೝ
‫כ‬ଷ଺ହ
ሺ
ଶǡ
ଶ଴଴ ௜ ௟ ௢௡ ௕௔௥௥௘௟
௠ ௟ ௜ ௢௙
௦
ଵ ௜ ௟
௠ ௟ ௢௡
್ೌೝೝ೐೗
೏ೌ೤
೏ೌ೤ೞ
)
೤೐ೌೝ
‫כ‬ଷ଺ହ
ሺ
= 53 years
= 6 years

28. World Crude Oil Production Millions of Barrels Per Day (m b/d)
(m b/d)

29. USA Crude Oil Production
Source OPEC´s ASB 2013

30. World Crude Natural Gas Production (Billions Standard Cubic Meters per Day)
(b scm/d)
Source OPEC´s ASB 2013

31. Crude Oil
WTI is a light crude oil, with an API gravity of around 39.6 and specific gravity of about 0.827, which
is lighter than Brent crude. It contains about 0.24% sulfur thus is rated as a sweet crude oil (having
less than 0.5% sulfur), sweeter than Brent which has 0.37% sulfur.
Source. Bloomber
Source :Association of American Railroads, Bloomber

32. Oil Production LAR 2012 Thousands of Barrels per Day (1000 b/d)
Country
2011
2012
1
Venezuela
2,881
2,804
2
México
2,552
2,548
3
Brazil
2,105
2,061
4
Colombia
914
914
5
Argentina
560
535
6
Ecuador
500
504
7
Peru
70
67
8
Bolivia
44
51
9
Guatemala
11
11
10
Chile
4
4

33. Crude Oil
How much is there?
World reserves stood at 1,478,211 (*) millions of barrels. Word demand
is about 76 millions of barrel per day. At this rate, the oil will last about
53 years.
Lasting time
Lasting time
OPEC´s ASB 2013 2012 world reserves
್ೌೝೝ೐೗
೏ೌ೤
್ೌೝೝ೐೗
೏ೌ೤
೏ೌ೤ೞ
೤೐ೌೝ
೏ೌ೤ೞ
೤೐ೌೝ
= 53 years
= 6 years

34. Crude Oil API Classification
Oil API gravity is one way of expressing density. It is related to the specific gravity (SG) of the fluid as
follows:
Specific gravity is the ratio of the density of the fluid to the density of water at a reference
temperature and pressure (25°C, 101 kPa).
Is used to a general classification of crudes as extra heavy oil, heavy oil, medium oil and light oil
The density of a crude of 10 API is equal to the density of fresh water at Standard Conditions

35. Crude Oil Heavy Oil Denominations
Because there is a range variation in viscosity for similar API grades and confusing denomination
for Heavy Oils, Bitumen and Tar Sands there a need for a simple classification based on viscosities
Class Description
Viscosity
Condition
(1)
API range
Example
A
Medium Heavy Oil
10 to 100
Mobile
25 to 18
Llanos Field
B
Extra Heavy Oil
100 to 10000
Mobile
20 to 7
Orinoco Castilla
C
Tar Sands and Bitumen 10000
Non mobile 12 to 7
D
Oil Shale (2)
Non mobile
(2)
(1) At cold conditions
(2)Rock of oil shale is not permeable
Athabasca Sand

36. Crude Oil API Classification

37. Crude Oil
Petroleum or crude oil is a complex mixture of
hydrocarbons and other chemicals. The
composition varies widely depending where and
how the petroleum was formed. In fact, a
chemical analysis can be used to fingerprint the
source of the petroleum. However, raw
petroleum or crude oil has characteristic
properties and composition.
Elemental Composition
1.Carbon
2.Hydrogen
3.Nitrogen
4.Oxygen
5.Sulfur
6.Metals
83 to 87%
10 to 14%
0.1 to 2%
0.05 to 1.5%
0.05 to 6.0%
0.1%

38. Unconventional Resources
Orinoco Heavy Oil
Sandstone

39. Unconventional Gas
Shale Gas
A depiction of how
methane hydrate
found in ice burns.
Resource triangle for natural gas (Holditch 2006).
Source: JPT 2010 BHI/CONNEXUS MAGAZINE
The U.S. Department of Energy’s National Energy
Technology Laboratory estimates that the global methane
hydrate resource is 700,000 Tcf (20 000 Tcm). Connexus
Baker Hughes Inc.

40. Unconventional Gas Vs. Conventional Gas
Unconventional
Source: EIA 2010

41. Unconventional Gas

42. Unconventional Gas
Frac Job
Source: EIA / Wikipedia
Shale Gas
Frac Job

43. Unconventional Gas - Frac Job
Water is by far the largest
component of fracking fluids.
A Hydraulic fracturing job
consume from 6,000 to
600,000 US gallons of
fracking fluids, but over its
lifetime an average well may
require up to an additional 5
million gallons of water for
full operation and possible
restimulation frac jobs.
Source: source watch organization

44. Portfolio of Electricity Generation USA

45. Colombia - Overview
VIM
VSM
Llanos
Preliminary studies suggest significant undiscovered heavy oil potential at shallow depths of less than
2,000 feet of between 1 billion and 2 billion barrels of oil in place could exist … with 100 million to 300
million barrels of recoverable reserves. - Hart

46. Unconventional - Insight
“Unconventionals” is a very trendy word indeed. But what is so unconventional about unconventional oil and gas resources?
Heavy-oil exploitation is widely commercialized; whether by mining of the oil sands and oil shales or by in-situ steaming or combusting
processes that bring extra-heavy oil to the surface. Yet we say that such oil is unconventional.
Research and pilot operations continue in an effort to increase recovery and decrease costs. When “cheap and easy oil” becomes scarce,
should we then refer to these recovery techniques as “advanced,” “complex,” or “difficult” recovery rather than the exploitation of
“unconventional” oil?
The same could be said for shale gas. A few years ago, such gas was said to be unconventional. However, continued research and recent
exploitation with multifracs from horizontal wells have led us to think differently. Already, shale gas appears to be more conventional
than coalbed methane. With the ever-increasing need for natural gas as a clean fuel, the importance of producing more gas is growing.
Not all “unconventional” gas is equal: Each type is at a different stage of exploitation. While waiting to find out about the effect of
renewable energies on our society, gas remains the leading fuel of choice, whether it is natural or a product of gasification of coal or
biomass.
So, where do we look next? Previous centuries all favored a particular source of energy: The 19th century focused on coal because it had
no other alternative, and the 20th century was mainly oil-centered. In the 21st century, we must turn wisely to the resources we have.
There is no doubt that we will have to use a diversity of energy sources adapted to our needs: oil, gas, nuclear,
and renewable energies will all find their share.” Marcel Polikar
Source: JPT • JULY 2010
Marcel Polikar, SPE, is a Senior Reservoir Engineer with Shell International EP in Rijswijk, The Netherlands, in the Thermal and Unconventional Enhanced-Oil-Recovery RD group.

47. Operation and Services

48. Real Time Remote Services
The Future Belongs to Digital
Professionals
•
•
•
•
•
•
•
•
Digital USA Summit: Baker Hughes Inc.
Digital Oil Field/Engineer
Real Time/Remote Control
Advanced Control System
Data Base Management
Real Time Decision
Globalized Teamwork's
Production Enhancement
Reservoir Optimization

49. Exploration
Source Internet Various
Seismic Operations

50. Exploration – Prospection
Seismic Operations
Seismic lab Crew
Vibroseis
Source Internet Various

51. Exploration and Development- Rig Types
Source Internet Various

52. Rig Systems – Main Components
1.
3.
4.
5.
6.
7.
8.
9.
10.
13.
16.
18.
19.
21.
22.
23.
Crown
Drill Line
Monkey board
Traveling Block
Top Drive
Derick
Drill Pipe
Dog House
Blow Out Preventer
Generators
Mud Pumps
Mud Pits
Reservoir Pit
Shale Shaker
Choke Manifold
Pipe Ramp
Roughneck Jobs
Toolpusher:
Driller
Derrickhand
Motorman
Boilerman

53. Rig Systems - Hoisting
Source Internet Various

54. Rig Systems - Rotating
Source Internet Various

55. Rig Systems - Pipes
Drill String
Subs Stabilizers
Drill Collars
HWDP
Bits

56. Rig Systems - BITS
Cones
Reamer
Core Bit
Eccentric
Inserts PDC
Source: Baker Hughes Inc and others
Hybrid
Jets

57. Rig Systems – Rotating

58. Rig Systems – Circulation

59. Rig Systems – Safety

60. Drilling a well
Drilling and connections.
The Drillstring is run into the hole
with a Bit. The drillstring is rotated
and the bit drills the hole.
Pipe is run into the hole as Joints (30’)
or Stands (90’), a stand being three
joints of pipe.
After a joint or stand has been drilled
down, a Connection is made to add
another joint or stand to the string
and drilling continues.

61. Drilling a well
Drilling and tripping.
When a bit is worn out, or the planned
hole section has been finished the
drillstring will be pulled or tripped.
Stands of pipe are pulled and racked in the
derrick.
The bit will be changed and the pipe
tripped back into the hole.
Trips must be monitored to assure the
correct fluid is being returned to the hole.
Source Internet Various

62. Drilling a well – Drilling Fluids (Muds)

63. Drilling a well
Directional drilling
• To avoid collision with other wells.
• To allow intersection by a relief
well in the event of a blow-out.
• To hit the geological target areas
• To provide a better definition of
geological and reservoir data.
• For equity determination.
• To fulfil local and government
regulations.

64. Completing a well
TYPICAL
DEPTHS
CONDUCTOR (26” – 20”)
SUPERFICIE (20” – 13-3/8”)
40-1500 FT
100-3000 FT
TIE-BACK LINER (9-5/8” – 5”)
INTERMEDIO (13-3/8” – 7”)
CASING
Casing is steel pipe that protects the hole
from collapse and the formation from
damage.
Casing is run from the wellhead, each
casing being run inside the other.
Surface Casing – (30” 20”)
4000-16000 FT
LINER (9-5/8” – 5”)
GREATER THAN
20000 FT
Intermediate Casing – (13 3/8” 9 5/8”)
Liner (7” 5”)Hung inside the previously
run casing

65. Cementing a well
Once casing is run, it will be cemented into place.
Cementing helps:
•
•
•
•
•
Bond the casing to the formation
Protect any producing formations
In the control of blowouts
Seal off troublesome zones
Provide support for the casing

66. Well Logging and Testing

67. Well Logging and Testing
Orinoco Extra heavy Oíl
Can be produced on cold?
Source Internet Various,Also Baker Hughes Inc.

68. Well Logging and Testing
Separators
Skid Unit
Pay Zone
Flares
X masstree
Shaped Charges
• How much fluids
• Gas
• Oíl
• Water
• What quality
• What pressure
Well Head

69. Fluid Sampling Analysis
Phase Diagram
Chromatographic

70. Reservoir Characterization
•
•
•
•
•
Geophysicist
Geologist
Geochemist
Reservoir Engineer
Production Engineer
Source Internet
•
•
•
•
•
•
Static Model
Dynamic Model
Volumetric OIP
Well Planning
Updated Reserves
Production Optimization

71. Completion and Production

72. Environmental Management
 Fluid Environmental Services
 Control

Limpieza de
Tanques
de
Control
Sólidos
Control of solids in Mud
Centrifuge
Selective Flocculation
de
Control
de
Sólidos
Mud dehydration
Procesamiento
Sólidos Cortes
de
Procesamiento
de
Líquidos
Central de
Procesamiento
Disposición de
Desechos
Re-inyección de
cortes y
Transporte
Decantation
Flocculation
Chemical mixing
Centrifugation
Dilution
Solids disposal
Liquid Treatment
Mud Dehydration
Water treatment
Chemical mixing
Fluids Transfer
Disposal

73. Problems while drilling

74. CPF – Central Processing Facilities
In the Oil and Gas industry, CPF belongs to the Upstream activity to described the
production unit performing the first transformation of the crude oil or raw natural gas
after the production wells.
• Collect the production of the different well pads in a centralized facility
• Condition raw oil crude and and natural gas to be sent to the refineries
• Condition production water to be environmentally under specifications
2.4 million BWPD
65,000 bpd
(250,000 bopd)
320,000 bpd
500,000 bpd
1.2 million bpd
320 million scfd
Industry Standards
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
API
ANSI
ASME
BS
GOST
IEEE
ISO
MIL
MSS
NFP
NTC
OSHAS
UL
Ecopetrol
Exxon

75. Deep Water Horizon– Safety
Deepwater Horizon explosion and blowout
An explosion on the drilling rig
Deepwater Horizon occurred on April 20,
2010, killing 11 workers.
The Deepwater Horizon sank on April 22,
2010, in water approximately 5,000 feet
(1,500 m) deep, and was located resting
on the seafloor approximately 1,300 feet
(400 m) (about a quarter of a mile)
northwest of the well.
Source Internet Various

76. Rig Systems – Safety - Piper Alpha
Piper Alpha was a North Sea oil
production platform .
The platform began production
in 1976, first as an oil platform
and then later converted to gas
production. An explosion and
the resulting oil and gas fires
destroyed it on 6 July 1988,
killing 167 men, with only 61
survivors.
Source Internet Various

77. Chemical Industry – Safety -Bhopal
1984
El desastre de Bhopal, ocurrido en 1984 en
la región de Bhopal (India), se originó al
producirse una fuga de isocianato de metilo
en una fábrica de pesticidas.
Se estima que entre 6.000 y 8.000 personas
murieron en la primera semana tras el
escape tóxico y al menos otras 12.000
fallecieron posteriormente como
consecuencia directa de la catástrofe,
que afectó a más de 600.000 personas,
150.000 de las cuales sufrieron graves
secuelas..
De Wikipedia, la enciclopedia libre

78. Colombia - Overview