Primary Workshop Objectives
1)  Understand how oil and gas are formed, trapped,
discovered and developed.
2)  Become familiar with the disciplines and skills involved
in finding and producing oil and gas.
3)  Recognize the basic tools, equipment and processes
used in finding, developing, producing and refining oil
and gas.
4)  Understand the industry language and terminology that
you are likely to encounter.
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1
Petroleum Industry Process Overview
1.
2.
3.
4.
5.
Basin Analysis (Global Exploration)
Play Concepts
Exploration Fairways
Exploration Leads & Prospects
Exploration & Appraisal Drilling
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INTRODUCTION
•  Basic Terminology
•  Global Consumption, Production & Reserves
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Natural Oil Seeps
La Brea Tar Pits
• Located in Los Angeles, California
• Abundant plant & animal life preserved
• Bacterial degradation alters the oil to asphalt (tar) and
releases methane gas
• Skeletons recovered include mammoths, dire wolves,
bears, ground sloths, the saber-toothed cats and one
human.
• Oldest know organic material = 38,000 years
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Terminology: What is Petroleum?
condensate)
oil)
•  Petroleum: a natural yellow-to-black flammable liquid
•
hydrocarbon found beneath the earth’s surface
Hydrocarbon: an organic compound made up of
carbon and hydrogen atoms
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Terminology: Oil Gravity
*API = American Petroleum Institute
50
45
40
35
API Gravity
•  Oil density is
expressed in terms of
API* gravity
measured in degrees
(example 40o)
•  API gravity is related
to Specific Gravity,
the weight of a
volume of liquid
divided by the weight
of the same volume
of water.
•  APIo >10 floats on
water
•  APIo <10 sinks in
water
30
25
Light
Ghawar = 34o
Prudhoe Bay = 28o
Medium
20
15
WATER
Heavy
10
Oil Sands = 8o
5
0
0.75
0.80
0.85
0.90
0.95
1.00
1.05
Specific Gravity
APIo = 141.5/SG -131.5
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Terminology: What is Natural Gas?
•  Natural gas is a mixture of
hydrocarbons - primarily
methane (CH4) but often
including ethane, propane,
butane and also impurities
like water and CO2.
•  Natural gas occurs separately
or in association with oil in a
reservoir.
•  Methane, the simplest
hydrocarbon containing one
carbon and four hydrogen
atoms, is colorless and
odorless.
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Terminology: A Barrel of Oil
The 42-gallon barrel originated in the 1860s
when producers stored and transported
petroleum in wooden barrels.
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Terminology: Oil Measurements
symbol
# of bbls
bbl
1
MBO
1,000
MMBO
1,000,000
BBO
1,000,000,000
usage
basic unit
well production/day, small field reserves
field reserves
giant field reserves (>500mmbo)
BOPD = Barrels of oil /day
BOE = Barrels of Oil Equivalent (1 bbl = 5.6 mcfg)
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Terminology: A Cubic Foot of Gas
•  One cubic foot of natural
gas has about 1031 Btus
•  One Btu (British Thermal
Unit) is the heat required
to raise the temperature of
one pound of water one
degree Fahrenheit.
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Terminology: Gas Measurement
A typical home
uses 100-150
mcfg/yr
symbol
# of ft3
MCF
1,000
MMCF
1,000,000
BCF
1,000,000,000
TCF
1,000,000,000,000
Usage
basic unit
well production/day
field reserves
giant field reserves
MCFG/D = thousands of cubic feet of gas per day
BOE = Barrels of Oil Equivalent (5.6 mcfg = 1 boe)
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Upstream, Midstream, & Downstream
•  The Upstream oil sector, also called the Exploration and
Production (E&P) sector, is involved in the search for
and recovery of crude oil and natural gas.
•  The Midstream sector refers to the processing, storage,
marketing and transportation of crude oil, natural gas,
and natural gas liquids such as ethane, propane and
butane.
•  The Downstream sector, which includes oil refineries,
petrochemical plants, petroleum product distribution,
retail outlets and natural gas distribution companies,
provides many common products such as gasoline,
diesel, jet fuel, natural gas, and heating oil, plus asphalt,
lubricants, synthetic rubber, plastics, fertilizers,
pesticides, and pharmaceuticals.
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Transporting
Petroleum
Transporting Petroleum
Transporting Petroleum
Upstream
Offshore
Platform
Oil Field
Oil Field
Midstream
Pipeline
Tanker
Refinery
Pipeline
Consumers
Tank Truck
!"#$%
Local
Distributor
Mobil
Downstream
Industrial
Customers
JMA
Railroad Tank Cars
after World Book
Encyclopedia
24803
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INTRODUCTION
•  Basic Terminology
•  Global Consumption, Production & Reserves
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Global Energy Consumption
1990 - 2035
555
EIA, International Energy Outlook 2010
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Global Consumption by Region
OECD: Organization for Economic Co-operation and Development
(34 countries incl. US, Europe, S. Korea, Japan, Australia, etc!)
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Global Energy Consumption
by Fuel Type
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Global Oil Production
Top 10
!"##$%&
,%"-$&./%0$%&
2,&
4/%5&
89$5%&
8%5%-%&
;<=$>?&
@<5<A"<B%&
C"D%$E&
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6)7+&
6):+&
7):+&
3)1+&
3)3+&
3)(+&
3)'+&
Global = 86.1 MMBO/D (2010 ave.)
BP Statistical Review of World Energy, 2010
http://www.bp.com/statisticalreview
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Global Gas Production
Top 10
2,&
!"##$%&
8%5%-%&
4/%5&
H?/D%I&
89$5%&
J%E%/&
.BK</$%&
H<E9</B%5-#&
45-?5<#$%&
BP Statistical Review of World Energy, 2010
http://www.bp.com/statisticalreview
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'*)(+&
'*):+&
6)'+&
7)G+&
3)7+&
()*+&
()*+&
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()6+&
19
Global Oil Reserves Distribution
Global proved oil reserves = 1.333 trillion bbls.
BP Statistical Review of World Energy, 2010
http://www.bp.com/statisticalreview
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Global Gas Reserves Distribution
Global proved gas reserves = 6,618 TCF (187.5 trillion cu. meters)
BP Statistical Review of World Energy, 2010
http://www.bp.com/statisticalreview
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Billions of Barrels
of Oil Equivalent
Prud h oe Bay, Alaska, USA
Faro o zan-Marjan, Saud i Arabia/Iran
The
World’s
Biggest
Fields
Man ifa, Saud i Arabia
Zakum, Abu Dh abi, UAE
Ch icontepec, Mexico
Berri, Saud i Arabia
Abq aiq , Saud i Arabia
Kash ag an, Kazakstan
Ro mash kino, Vo lga-Ural, Russia
Marlim, Camp os, Brazil
Ag h ajari, Iran
Gach saran, Iran
Samo tlo r, West Siberia, Russia
Marun , Iran
Kirkuk, Iraq
Ah waz, Iran
Rumaila, Iraq
Ten g iz, Kazakstan
Safan iya-Khafji, Saud i Arabia/Neutral Zone
Bo livar Coastal, Ven ezuela
Burg an , Kuwait
Gh awar, Saud i Arabia
0
50
100
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The World’s Giant Fields
Authors: Mann, P., M.K. Horn, I. Cross.
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Peak Oil
•  The point in time when the maximum rate of
global oil production is reached.
•  Following Peak Oil, the rate of production enters
terminal decline.
•  Peak oil is not the time at which the world runs out
of oil, but the point at which global production
begins steady decline.
•  M. King Hubbert developed this theory in 1956
and accurately predicted that US oil production
would peak between 1965 and 1970.
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Global Oil Production Forecasts
http://www.theoildrum.com/story/2006/11/13/225447/79
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World’s Biggest Oil Companies
“BIG OIL”
Based on reserves
Source: Oil & Gas Journal, 9/6/2010
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INTRODUCTION
•  Basic Terminology
•  Global Consumption, Production & Reserves
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Geology
•
•
•
•
•
Introduction to Geologic Age
Plate Tectonics
Rock Types and Reservoirs
Types of Petroleum Traps
Mapping
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Introduction to Geologic Age
Fathers of
Modern
Geology
The earth is
very old.
James Hutton
1726-1797
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Principle of Original Horizontality
,E/%LM>%L?5&D%#&?/$K$5%BBI&9?/$A?5E%B&0<>%"#<&#<-$N<5E%/I&
O%/L>B<#&#<PB<&Q/?N&R"$-#&"5-</&E9<&$5R"<5><&?Q&K/%S$EI)&&
Cliffs of Moher, Ireland
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Principle of Superposition
45&%5I&#">><##$?5&?Q&/?>T&B%I</#U&E9<&?B-<#E&B$<#&%E&E9<&
0?P?N&D$E9&#">><##$S<BI&I?"5K</&&B%I</#&BI$5K&%0?S<)&&
Younger
Younger
Older
Erosion
Deposition
Sea Level
This is the basis for determining the relative ages of all strata and their contained fossils.
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Geologic Age
,E/%LM>%L?5&E9%E&D%#&?/$K$5%BBI&9?/$A?5E%B&%5-&$#&5?D&
$5>B$5<-&?/&Q?B-<-&N"#E&9%S<&#"V</<-&WE<>E?5$>X&-$#E"/0%5><&
?S</&K/<%E&O</$?-#&?Q&LN<&#"0#<Y"<5E&E?&-<O?#$L?5)&
Siccar Point (Scotland) where Hutton
observed in 1788 that 345 million
year old rocks unconformably overlie
425 million year old rocks.
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Fathers of Modern Geology
Faunal
Succession
William Smith
1769-1839
Fossils are found in a sequence progressing
from older to younger, and that sequence
can be found in rocks elsewhere, indicating
correlation between locations.
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Faunal Succession
•  Fossilized plants and animals contained in sedimentary
rock layers succeed each other in time, with younger
layers lying on top of (shallower than) older layers.
•  The vertical sequence of fossils occurs in a specific
order that allows sedimentary rocks to be dated and
correlated across and between continents.
Example: A fossilized
mammoth tusk will never
occur in the same
sedimentary rock formation
as a Tyranosaurus Rex
bone because the two lived
millions of years apart.
65,000,000 years old
150,000 years old
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Geologic Age
Proterozoic
Stromatolites
(600 MYBP)
Silurian Ammonites
(425 MYBP)
Cretaceous shark teeth (100 MYBP)
Eocene fossil fish (50 MYBP)
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Please do not turn the page
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Geologic Age
1st occurrence
earth's origin
Yrs BP
Annual Equivalent
4.7 Billion
1-Jan
bacteria
3.5 Billion
3-Apr
dinosaurs
250 Million
12-Dec
Greeks, Romans
2 Thousand
31 Dec, 11:59:47 PM
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Geologic
Age
1st Occurrence
Yrs BP
Annual Equivalent
earth's origin
4.7 Billion
1-Jan
bacteria
3.5 Billion
3-Apr
algae, protozoa
1.5 Billion
6-Sep
fungi
1.0 Billion
14-Oct
sponge
700 Million
7-Nov
jellyfish
650 Million
11-Nov
worms, clams
570 Million
17-Nov
fish
500 Million
22-Nov
sharks/insects
390 Million
1-Dec
amphibians
350 Million
4-Dec
reptiles
300 Million
8-Dec
dinosaurs
250 Million
12-Dec
mammals
200 Million
15-Dec
Neanderthals
200 Thousand
31-Dec
(11:38:00 PM)
people
100 Thousand
31-Dec
(11:49:00 PM)
Greeks, Romans
2 Thousand
31-Dec
(11:59:47 PM)
1st land plants
~470 mm yrs. BP
1st land animals
~450 mm yrs. BP
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Geologic
Age
Methods for age
dating and
correlating rocks
include: fossils,
stable isotopes,
paleomagnetics,
and sedimentary
cycles.
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‹#›
Biostratigraphy: Trilobites
300 million
years
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‹#›
Trilobite Fossils
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.#/0,%+,(+1#((
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?*8+&()0@,*+%,&A()0:0$$0(
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‹#›
Geoscience
•
•
•
•
•
Introduction to Geologic Age
Plate Tectonics
Rock Types and Reservoirs
Types of Petroleum Traps
Mapping
BC.DE(
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‹#›
Plate Tectonics&
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%#E9<5?#O9</<)&&
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%5-&>%5&R?D&B$T<&%&B$Y"$-&?5&K<?B?K$>%B&LN<&#>%B<#&
Plate Tectonics
Types of plate boundaries
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‹#›
Plate Tectonics
Earthquakes (yellow), Volcanoes
(red) and Plate Boundaries (blue)
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‹#›
The San Andreas Fault
The San Andreas Fault is the
Boundary between the North
American Plate and the Pacific Plate
USGS graphic
These plates are moving
past one another at a rate
of about one inch per year.
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‹#›
Plate Tectonics
140 million years ago
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‹#›
Plate Tectonics&
•  ?"F+,6?8<%+,(#+:89(G(
•  H:#6I#,0J+,%+,6
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Plate Tectonics
Modeling of tectonic
plate movements
helps geoscientists
predict the location
and dimensions of
sedimentary basins
capable of containing
hydrocarbon
accumulations.
75 million years ago
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‹#›
•  I+J"+,%+,(N4O()+(P(
Q+*#(G(
•  H0&*(I#,0J+,%+,6
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Plate Tectonics&
Plate Tectonics
Mid Ocean Ridge & Sea Floor Spreading
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Plate Tectonics
&
Plate Tectonics
The locations of certain fossil plants and animals on present-day, widely
separated continents form definite patterns.
&
Geology
•
•
•
•
•
Introduction to geologic age
Plate tectonics
Rock types and reservoirs
Types of petroleum traps
Mapping
©SCA,
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‹#›
Hydrocarbon Reservoirs
Hydrocarbons Exist in a Reservoir
©SCA,
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‹#›
Sandstones
•  A sedimentary (clastic) rock deposited by water or wind erosion and
composed of cemented, sand-sized mineral grains.
•  Most sanstones are composed of quartz and feldspar; the most
common minerals in the earth’s crust.
•  Deposition occurs when the sand grains settle from suspension in
water, such as when a river enters an ocean.
•  Cementation occurs with burial and compaction along with the
precipitation of minerals within the pore spaces between sand grains.
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Sandstone
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Sandstone Reservoirs
Pore space
Sand Grains
Permeability
Good Porosity = Lots of Space for Oil & Gas
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Hydrocarbon Reservoirs
Porosity
Gas/
Oil
Contact
Oil/
Water
Contact
Sand Grain
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‹#›
&&
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&&
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&&
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'*_1`&]&a%BT</U&'*_1X)&
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Oil Sands
•  Oil Sands, sometimes called Tar Sands, are generally
loosely consolidated sandstone formations saturated
with highly viscous crude oil.
•  The oil is “heavy” or tar-like because the lighter
fractions of the oil have been lost, and the remaining
fractions have been bio-degraded by bacteria.
•  Not the same as “oil shale”
©SCA,
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Oil Sands
Canada’s Alberta oil
sands deposits cover
54,000 square miles,
an area larger than the
state of Florida, and
hold an estimated 175
billion barrels of crude
oil.
Tar Sands Open Pit Mining
Alberta, Canada
Photograph: Suncor Energy
It takes two
tons of tar
sands (4,410
lbs.) to make
one barrel of oil
Athabasca Oil Sands
©SCA,
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‹#›
Why are Oil Sands important?
•  Approximately 2/3 of the world's total crude oil resources
are estimated to exist in oils sands.
•  Canada and Venezuela are estimated to have 1.7 trillion
barrels and 1.8 trillion barrels of oil sands related crude
respectively
•  Conventional oil resources remaining worldwide (mostly
in the Middle East) are estimated to total 1.75 trillion
barrels.
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Unconventional or Resource Plays
Conventional Reservoirs
•  can be produced at economic
flow rates
•  will produce economic volumes
of oil and gas
•  do not require massive
stimulation treatments, special
recovery processes or leadingedge technology.
Unconventional Reservoirs
•  cannot be produced at
economic flow rates
•  do not produce economic
volumes of oil and gas without
assistance from massive
stimulation treatments or
special recovery processes
and technologies
©SCA,
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‹#›
Unconventional or Resource Plays:
Shale Oil and Shale Gas
•  Oil Shale is a source rock, reducing the risk of finding hydrocarbons.
•  Shales have low permeability and do not naturally produce
hydrocarbons at commercial rates.
•  Shale reservoirs require high organic content, brittle lithology and
natural or man-made fractures.
•  Hydraulic fracturing (made-made reservoir fractures) and horizontal
drilling (increasing well bore exposure to the reservoir and natural
fractures) make “unconventional” shale formations commercial.
©SCA,
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‹#›
Shale Gas - US&
Technically
Recoverable
Shale Gas
Resources
! 482 trillion ft3
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‹#›
Shale Gas - US&
After The Gold Rush: A Perspective on
Future U.S. Natural Gas Supply and Price
Posted on The Oil Drum by A. Berman
February 8, 2012
©SCA,
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‹#›
Shale Gas Plays – Fractured Reservoirs
Conventional
Core from
Marcellus
Shale Reservoir
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Shale Gas Plays – Fractured Reservoirs
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Shale Gas Plays - Global&
Technically Recoverable Shale Gas Resources
! 48 shale gas basins
! 32 countries
! ~70 shale gas formations
! Global (excl. US) = 5,760 trillion ft3
! Global + US = 6,622 trillion ft3
EIA World Shale Gas Resources Report: April 2011
Global Proved Reserves
~6,609 trillion ft3
(January 1, 2010)
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Geoscience
•
•
•
•
•
Introduction to Geologic Age
Plate Tectonics
Rock Types and Reservoirs
Types of Petroleum Traps
Mapping
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‹#›
Trap Types: Structural Traps
•  Structural traps form when potential reservoir formations
are deformed by tectonic movement or faulting.
•  Typical structural traps include anticlines, folds, salt
domes and faults.
•  Structural traps are the most common types of trapping
mechanism because they are easier to identify than
other trap types, sometimes visible at the earth’s
surface.
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Fault Traps: Normal Fault
Normal Fault
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Fault Traps: Normal Fault
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Fault Traps: Growth Faults
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Fold Traps: (Anticlines or 4-way Closures)
Gas
Oil
Water
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Salt Dome Trapping Mechanism
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Avery Island Salt Dome
Surface expression of
a buried salt feature
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Trap Types: Stratigraphic Traps
•  Stratigraphic traps occur when the reservoir formation is
sealed by surrounding, impermeable formations.
•  Trapping may occur due to lateral changes in the
reservoir formation itself, called perm barriers or pinchouts.
•  Sedimentary features such as reefs (carbonates) also
form stratigraphic traps.
http://www.wsgs.uwyo.edu/Topics/WYEconomics/Economics-Fluids.aspx
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Carbonate Traps
•  Carbonate formations, commonly limestone, dolomite
and chalk, consist primarily of calcite and its
derivatives which form by the activity of marine
organisms such as coral and algae.
•  Carbonate rocks can be clastic in origin, formed from
the eroded by-products of coral reefs.
•  Carbonate rocks can be good reservoirs due to the
formation of porosity by dissolution.
•  Their brittle nature lends itself to fracturing, which
provides reservoir permeability.
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Carbonates: Modern Analog
Grand Bahamas
Bank
(Carbonate Factory)
Reef Front
Deep Water
Island of Eleuthera (Bahamas)
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Carbonates: Modern Analogs
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Carbonate Reefs on Seismic Data
Carbonate Reef Porosity
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Carbonates: Ghawar Field
World’s Largest
Oil & Gas Field
• Jurassic limestone
deposited on a
continental shelf
• Exposed in tidal zone
• Converted to Dolomite
• Volume reduction
results in large porosity
increase
• April ‘10 reserves: 65+
BBO produced, EUR =
100+ BBO
?":%8(ZO5O(:#&#:/#&'((
• (Y[\(]]E(":0R@$#R(
• (5OO\(]]E(D^L(
Current daily
production
Oil
gas
5 million
bbls
2 billion
feet3
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‹#›
Geology
•
•
•
•
•
Introduction to Geologic Age
Plate Tectonics
Rock Types and Reservoirs
Types of Petroleum Traps
Mapping
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‹#›
Mapping: Topographic Contour Maps
A line on a map that
represents a constant
value of the data being
mapped is called a
contour line.
The structure map is like
a surface topographic
map drawn on an
underground formation.
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Mapping: Structure Maps
-2500
-4,000
-1150
-1000
-2000
-3000
-4000
-5000
-6000
-7000
-8000
1 Mile
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Interpretive Contouring
-10,140
m-10,137
-10,120
-10,120
m
m-10,123
m
m -10,142
m-10,124
-10,104
m-10,125
N
m-10,118
m-10,086
m-10,104
m
-10,101
m-10,098
m-10,103
-10,120
Structure Map (Depth)
XYZ Formation Top
1000 ft
-10,140
Contour Interval = 10 feet
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Interpretive Contouring
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Interpretive Contouring - Faults
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Geology
•
•
•
•
•
Introduction to Geologic Age
Plate Tectonics
Rock Types and Reservoirs
Types of Petroleum Traps
Mapping
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‹#›
Please do not turn the page
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‹#›
_#0801%$(?1#(
e5<&I<%/&f8B?>Tg&
earth's origin
4.7 Billion
1-Jan
bacteria
3.5 Billion
3-Apr
algae, protozoa
1.5 Billion
6-Sep
fungi
1.0 Billion
b/<[&
14-Oct
8%N0/$%5&
sponge
700 Million
7-Nov
jellyfish
650 Million
11-Nov
worms, clams
570 Million
17-Nov
Fish
500 Million
8%N0/$%5&
sharks/insects
390 Million
c<S?5$%5& 1-Dec
amphibians
350 Million
reptiles
300 Million
4-Dec
8%/0?5$Q</?"#&
8-Dec
dinosaurs
250 Million
Z/$%##$>&
12-Dec
mammals
200 Million
d"/%##$>&
15-Dec
Neandertals
200 Thousand
bB<$#E?><5<& 31-Dec
(11:38:00 PM)
people
100 Thousand
31-Dec
(11:49:00 PM)
Greeks, Romans
2 Thousand
31-Dec
(11:59:47 PM)
22-Nov
Exploration
•
•
•
•
Sedimentary Basins
Generation of Oil and Gas
Regional Geology
Leases, Licenses and PSA’s
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94
Sedimentary Basin
•  A depression in the Earth’s crust, caused by plate
tectonic activity in which erosional products such
as sand and silt (sediments) accumulate.
•  Sedimentary basins are the starting point for the
exploration process.
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The Gulf of Mexico Basin
Basin formed ~200 million years ago. Salt
deposited ~150 million years ago.
Area: 615,000 mi2 (1.6 million km")
Water depth: 14,383 ft., 2.7mi. or
(4,384 m) deep in the Sigsbee
Trough
32,000+ feet of sedimentary
fill, through present day
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96
Basin Sedimentary Deposition
Houston
Gulf of Mexico
Yucatan Peninsula
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North America Sedimentary Basins
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North America Sedimentary Basins
75-100
million
years ago
The Western Interior or Cretaceous Seaway
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Sedimentary Basins
•  As basins form they are filled with sediments such as sand
and silt, generally transported into the basin by rivers.
•  The increasing weight of the sediment fill causes the basin
to subside further allowing for the influx of additional
sediments.
•  As the sediments are buried, they are subjected to
increasing pressure and become lithified to form
sandstone and shale.
•  Basin subsidence can continue for millions of years,
resulting thousands of feet/kilometers of sediment
thickness.
•  Under the proper conditions, a petroleum system may
form.
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100
Exploration
•
•
•
•
Sedimentary Basins
Generation of Oil and Gas
Regional Geology
Leases, Licenses and PSA’s
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101
Generation of Oil and Gas
•  Crude oil and natural gas result from organic materials
that are buried with fine grained sediments to form shale
or source rocks.
•  The organic materials are vast quantities of microscopic
plants and animals such as algae and plankton (not
dinosaurs).
•  With increasing depth of burial, the organic matter is
exposed to pressure and temperatures that cause a
chemical reaction resulting in the formation of liquid and
gaseous hydrocarbons.
•  The depth at which these changes occur is called the
“oil window”.
•  With greater depth, oil undergoes thermal cracking
(similar to refining) and is converted into natural gas.
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Generation of Oil and Gas
Increasing Temperature w/ Depth
degrees F
0
100
200
300
400
Increasing Pressure w/ Depth
500
0
PSI
0
930
1,860
2,790
3,720
4,650
5,580
6,510
7,440
8,370
9,300
10,230
11,160
12,090
13,020
13,950
14,880
5,000
0
15,000
5000
20,000
10000
25,000
30,000
35,000
Temperature
increases @ ~15
degrees F/ft.
depth/feet
depth/feet
10,000
15000
20000
25000
30000
Pressure increases
@ ~0.465 psi/ft.
35000
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Please do not turn the page
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The Petroleum System
The combination of geologic processes that result in the
generation, migration, trapping and preservation of
hydrocarbons in the subsurface is called the Petroleum
System (“basin plumbing”).
•  Generation: formation of hydrocarbons in the source rocks.
•  Migration: movement of the generated hydrocarbons from
the source to the reservoir formations.
•  Accumulation: sealing and trapping of the migrating
hydrocarbons in the reservoir.
•  Preservation: preservation of the trapped hydrocarbons in
the reservoir to the present day
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!"#$%&"'()*+,#"(,)
Sea Level
Sea Floor
_+&(I+"(
`;(IQE!^LD(
Pressure &
Temperature
E%8(Q#1(
Gas/Oil Contact
Increasing
c+*#:(Q#1(
Oil/Water Contact
5`O0(X(a(YO0(I(
Oil Window
3[O0(X(a(5b[0(I(
Generation
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•  ?"F+,6?8<%+,(
•  H:#6I#,0J+,%+,6
K0@:0,%+,(!0@:$#(
L0$M(.#"0&%F0,&&
Petroleum System
Adequate column, closure?&
Location map
of 1981-82 Ivory
Coast
3-D seismic survey
showing structure of
Albian unconformity.
Contours in meters.&
In-line 525 crossing A-1X well location, Espoir field, IVORY COAST showing clear definition of rotated fault
block beneath Albian unconformity. &
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•
•
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H:#&#:/+F0,d(
•
•
•
X+@8*(f@g*+"0&%F0,(0=(:#&#:/0%:(*0(&#+8(+$:0&&(=+@8*d(
X+@8*(FJ%,16(":#a"0&*6J%1:+F0,d(
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Petroleum System&
Petroleum System
Adequate quality & quantity of Source Rock?&
Petroleum System
Adequate quality, quantity of Source Rock?&
Petroleum System
Adequate Quality & Quantity of Source
Rock?&
Petroleum System
Adequate quality, quantity of Source Rock?&
Petroleum System
Adequate quality, quantity of Source Rock?&
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!%#::+(Q#0,#(
8?5K?&
8?5K?&
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Natural Oil Seeps
Coal Oil Point seep field:
•  Located offshore California near Santa Barbara
•  Oil seepage averages 130-150 barrels of oil per day
•  55,000 barrels of oil per year
•  Seeps in this area are well documented by early
explorers and coast-dwelling Chumash Indians.
©SCA,
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Petroleum Systems
Sea Level
Sea Floor
Gas Cap
Increasing
TRAP
Pressure &
Temperature
Oil Leg
Gas/Oil Contact
Water Leg
Oil/Water Contact
140o F / 60o C
Oil Window
350o F / 175o C
GENERATION
©SCA,
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Prospect Risking&
factor
justification
Source
1.00
oil is present in nearby fields
Migration
1.00
oil is present in correlative formation
nearby
Reservoir
0.75
seismic character is similar to
productive interval nearby
Trap
0.25
faults extend into younger section,
possible breach
Seal
0.95
formation is overlain by thick shale
total
0.18
= 1 in
5.6
Exploration Prospect Risk
2. Commercial
Risk
• Reserve size
• Reservoir productivity
• Product price
• Commercial Terms
!$#T&$#&E9<&>9%5><&?Q&Q%$B"/<)&25></E%$5EI&/<Q</#&E?&E9<&/%5K<&
%5-&S%/$%5><&Q?/&%5I&$5O"E&?/&?"EO"E&O%/%N<E</&
High
Develop
3. Reserves
Uncertainty
Mid
• Reservoir area
• Pay thickness
• Reservoir quality
• Recovery factor
Discovery
Low
Decision
To Drill
1. Discovery
Risk
• Source
• Migration
• Reservoir
• Closure
• Containment
High
SubCommercial
Hold/Reevaluate
Mid
Low
Sell/Trade/
Farm-out /
Abandon
Failure
Note: Risk
AAPG Imperial Barrel Training Course – October 9, 2010
= Uncertainty
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26
&
Please do not turn the page
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Exploration
•
•
•
•
•
•
Sedimentary Basins
Generation of Oil and Gas
Regional Geology
Field Geology, Surface Mapping, and Aerial Photos
Exploration Risk
Leases, Licenses and PSA’s
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The Exploration Process
Exploration
License
Paleogeography
(Basins)
source
reservoir
migration
trap
Regional Geology
Exploration
Leads &
Prospects
Exploration
Plays
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131
The Exploration Process
Source: API - Offshore Access to
Oil & Natural Gas Resources
©SCA,
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132
Exploration Terms
•  Play: a geographic area containing prospects with
common stratigraphic and/or structural characteristics, or
a generic geologic setting or play type such as a sub-salt
play.
•  Lead: an exploration opportunity that demonstrates the
basic characteristics of a hydrocarbon trap including
reservoir rock, trapping mechanism, surrounding
formation seals, and a likely pathway to the source rock.
•  Prospect: a lead that has been sufficiently analyzed to
establish a reasonable probability of finding commercial
hydrocarbons.
•  Drill-Ready: A prospect on which leasing, permitting,
budgeting, etc !. are complete.
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Gulf of Mexico Sub Salt Play
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134
Sub Salt Play
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135
Sub Salt vs. Pre-Salt Plays
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136
Exploration Play Types
Sometimes a play is defined by common technology
requirements such as:
Deep Water Play: Exploration
activity located in offshore areas
where water depths exceed
approximately 1,000 feet (305 m),
requiring advanced drilling and
production technology. Deep
water targets can be geologically
similar to targets drilled in shallow
water or onshore.
Horizontal Play: Drilling a well
vertically from the surface to a
subsurface location just above
the target reservoir, then
deviating the well from a “kickoff
point” to penetrate the objective
reservoir horizontally and
remaining within the reservoir to
the desired bottom hole
location.
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Please do not turn the page
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