cpiq upstream hydrocarbon industry final

Upstream Sector

Introduction

Source Internet: CPIQ Web Page

Agradecimientos.

CPIQ

“El Consejo Profesional de Ingeniería Química de Colombia es una entidadcreada 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 lasactividades de las asociaciones gremiales, científicas y profesionales de laIngeniería Química.”

Hydrocarbon Industry Sectors

Source Internet Boletin SAO . Association of American Railroads, Bloomber, Ecopetrol

Upperstream Midstream Downstream

Exploration and production (E&P)

Transportation (Crude or Refined)Refinig of Petroleum

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 HydrocarbonNatural Mixture.

Source Internet Various

Natural Gas

Natural gas is a hydrocarbon gas mixture consisting primarily ofmethane, but commonly includes varying amounts of alkanes andbutanes and even a lesser percentage of carbon oxide, nitrogenand hydrogen sulfide (sour gas).[


Crude Oil and Natural Gas

Crude Oil (Oil) has Natural Gas. Oil is non renewable resources because theycannot be replenished on human time frame. They also called fossil fuelbecause they is thought where formed from dinosaurs.


Crude Oil and Natural Gas

Biotic theory: Petroleum is theremains of organic material thatwas deposited, usually in marineenvironments, millions of yearsago.

Abiotic theory:

Deep in the crust or in the mantel ofthe earth, bacteria may make oilabiotically, that is from sources thatwere never alive.

Hydrogen plus carbon dioxide with thehelp of archaea yield methane pluswater.

archaea

Source Theories for The Origen of Oil by Mike Westlund

Crude Oil Resources

OPEC´s ASB 2013 2012 world reserves

Salt Mine Emerald Vein

Reserve

Crude Oil Resources

Source: Internet

Crude Oil Resources – Native Fluids

Source: Internet

Reservoir Rock

Complex Faulted

Single Anticlinal

Reservoir Rock

Copyright © 2010-2014 - San Joaquin Valley Geology

• Porosity• Permeability• Saturation• Grain size

Crude Oil Resources

Exploratory well ExploratoryAnd Appraisal Wells

Source: SPE PRM 2011

Crude Oil ResourcesAssessment of Reserves


Crude Oil Resources


Recoverable reserves is also oftencalled proved reserves.

A term used in natural resourceindustries to describe the amount ofresources identified in a reserve thatis technologically or economicallyfeasible to extract. A new reservecan be discovered, but if theresource cannot be extracted by anyknown technological methods, thenit would not be considered part ofrecoverable reserves.

Recoverable Reserves

Crude Oil Resources - Production

Crude Oil Resources – Year over Year Balance

2012Year EndBalance

2011Year EndBalance

Produced

Discovery

EOR

(-)

(+)

(+)

± =

New Proved

$$$$$$$

OPEC Share of World Crude Oil Reserves 2012

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

Oil and Gas Reserves – Per Capita


New World Energy Map - Reserves

Conventional Reserves Shale GasThousands of Millions of BBL Billions of SCF

New World Energy Map

Source EIA and ARI

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

Natural Gas Proved Reserves LAR ( Billions of Cubic Meters)

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

Proved Reserves Thousands Millions of Bbl.

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

Oil Demand Thousands of Barrels per Day (k b/d)

Source US Energy Information Administration

World Oil Demand NAR and LAR (1000 b/d)


World Proven Crude Oil Reserves NAR and LAR (millions barrels)


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How much is there?

World reserves stood at 1,478,211 (*) millions of barrels. Word demand is about 76millions of barrel per day. At this rate, the oil will last about 53 years.

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

(m b/d)

USA Crude Oil Production


World Crude Natural Gas Production (Billions Standard Cubic Meters per Day)

(b scm/d)


Crude Oil

WTI is a light crude oil, with an API gravity of around 39.6 and specific gravity of about 0.827, whichis lighter than Brent crude. It contains about 0.24% sulfur thus is rated as a sweet crude oil (havingless than 0.5% sulfur), sweeter than Brent which has 0.37% sulfur.

Source : BloomberSource. Association of American Railroads, Bloomber

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

Oil Production LAR 2012 Thousands of Barrels per Day (1000 b/d)

Crude Oil

How much is there?

World reserves stood at 1,478,211 (*) millions of barrels. Word demandis about 76 millions of barrel per day. At this rate, the oil will last about53 years.

Lasting time ್ೌ

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= 53 years

OPEC´s ASB 2013 2012 world reserves

Lasting time ್ೌ

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Oil API gravity is one way of expressing density. It is related to the specific gravity (SG) of the fluid asfollows:

Specific gravity is the ratio of the density of the fluid to the density of water at a referencetemperature 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

Crude Oil API Classification

The density of a crude of 10 API is equal to the density of fresh water at Standard Conditions

Crude Oil Heavy Oil Denominations

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 Athabasca Sand

D Oil Shale (2) (2) Non mobile

Because there is a range variation in viscosity for similar API grades and confusing denominationfor Heavy Oils, Bitumen and Tar Sands there a need for a simple classification based on viscosities

(1) At cold conditions(2)Rock of oil shale is not permeable

Crude Oil API Classification

Crude Oil

Petroleum or crude oil is a complex mixture ofhydrocarbons and other chemicals. Thecomposition varies widely depending where andhow the petroleum was formed. In fact, achemical analysis can be used to fingerprint thesource of the petroleum. However, rawpetroleum or crude oil has characteristicproperties and composition.

1.Carbon 83 to 87%2.Hydrogen 10 to 14%3.Nitrogen 0.1 to 2%4.Oxygen 0.05 to 1.5%5.Sulfur 0.05 to 6.0%6.Metals < 0.1%

Elemental Composition

Unconventional Resources

Orinoco Heavy OilSandstone

Resource triangle for natural gas (Holditch 2006).

Unconventional Gas

Shale Gas

Source: JPT 2010 BHI/CONNEXUS MAGAZINE

A depiction of howmethane hydratefound in ice burns.

The U.S. Department of Energy’s National EnergyTechnology Laboratory estimates that the global methanehydrate resource is 700,000 Tcf (20 000 Tcm). ConnexusBaker Hughes Inc.

Unconventional Gas Vs. Conventional Gas

Unconventional

Source: EIA 2010

Unconventional Gas

Unconventional Gas

Shale Gas Frac JobFrac Job

Source: EIA / Wikipedia

Unconventional Gas - Frac Job

Water is by far the largestcomponent of fracking fluids.

A Hydraulic fracturing jobconsume from 6,000 to600,000 US gallons offracking fluids, but over itslifetime an average well mayrequire up to an additional 5million gallons of water forfull operation and possiblerestimulation frac jobs.

Source: source watch organization

Portfolio of Electricity Generation USA

Preliminary studies suggest significant undiscovered heavy oil potential at shallow depths of less than2,000 feet of between 1 billion and 2 billion barrels of oil in place could exist … with 100 million to 300million barrels of recoverable reserves. - Hart

VIM

VSM

Colombia - Overview

Llanos

“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 combustingprocesses 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 recentexploitation with multifracs from horizontal wells have led us to think differently. Already, shale gas appears to be more conventionalthan 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 ofrenewable energies on our society, gas remains the leading fuel of choice, whether it is natural or a product of gasification of coal orbiomass.So, where do we look next? Previous centuries all favored a particular source of energy: The 19th century focused on coal because it hadno 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 E&P in Rijswijk, The Netherlands, in the Thermal and Unconventional Enhanced-Oil-Recovery R&D group.

Unconventional - Insight

Operation and Services

Real Time Remote Services

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

The Future Belongs to DigitalProfessionals

Exploration Seismic Operations


Exploration – Prospection


Seismic Operations

Vibroseis

Seismic lab Crew

Exploration and Development- Rig Types


Rig Systems – Main Components

1. Crown3. Drill Line4. Monkey board5. Traveling Block6. Top Drive7. Derick8. Drill Pipe9. Dog House10. Blow Out Preventer13. Generators16. Mud Pumps18. Mud Pits19. Reservoir Pit21. Shale Shaker22. Choke Manifold23. Pipe Ramp

Toolpusher:

Driller

Derrickhand

Motorman

Boilerman

Roughneck Jobs

Rig Systems - Hoisting


Rig Systems - Rotating


Rig Systems - Pipes

Drill Collars

HWDP

Bits

Subs & Stabilizers

Drill String

Rig Systems - BITS

Cones

Inserts PDC

Reamer

Core Bit

Hybrid

Source: Baker Hughes Inc and others

Jets

Eccentric

Rig Systems – Rotating

Rig Systems – Circulation

Rig Systems – Safety

Drilling a wellDrilling and connections.

The Drillstring is run into the holewith a Bit. The drillstring is rotatedand the bit drills the hole.Pipe is run into the hole as Joints (30’)or Stands (90’), a stand being threejoints of pipe.After a joint or stand has been drilleddown, a Connection is made to addanother joint or stand to the stringand drilling continues.

Drilling a well

Drilling and tripping.

When a bit is worn out, or the plannedhole section has been finished thedrillstring will be pulled or tripped.

Stands of pipe are pulled and racked in thederrick.

The bit will be changed and the pipetripped back into the hole.

Trips must be monitored to assure thecorrect fluid is being returned to the hole.


Drilling a well – Drilling Fluids (Muds)

Drilling a well

Directional drilling

• To avoid collision with other wells.

• To allow intersection by a reliefwell in the event of a blow-out.

• To hit the geological target areas

• To provide a better definition ofgeological and reservoir data.

• For equity determination.

• To fulfil local and governmentregulations.

Completing a wellCASING

Casing is steel pipe that protects the holefrom collapse and the formation fromdamage.

Casing is run from the wellhead, eachcasing being run inside the other.

Surface Casing – (30” & 20”)

Intermediate Casing – (13 3/8” & 9 5/8”)

Liner (7” & 5”)Hung inside the previouslyrun casing

CONDUCTOR (26” – 20”)

SUPERFICIE (20” – 13-3/8”)

INTERMEDIO (13-3/8” – 7”)

LINER (9-5/8” – 5”)

TIE-BACK LINER (9-5/8” – 5”)

TYPICALDEPTHS

40-1500 FT

100-3000 FT

4000-16000 FT

GREATER THAN20000 FT

Cementing a wellOnce 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

Well Logging and Testing

Well Logging and TestingOrinoco Extra heavy Oíl

Source Internet Various,Also Baker Hughes Inc.

Can be produced on cold?

Well Logging and Testing

Well Head

X masstree

Skid Unit

Flares

Separators

• How much fluids• Gas• Oíl• Water

• What quality• What pressure

• How much fluids• Gas• Oíl• Water

• What quality• What pressure

Shaped Charges

Pay Zone

Fluid Sampling Analysis

Chromatographic

Phase Diagram

Reservoir Characterization

• Static Model• Dynamic Model• Volumetric OIP• Well Planning• Updated Reserves• Production Optimization

Source Internet

• Geophysicist• Geologist• Geochemist• Reservoir Engineer• Production Engineer

Completion and Production

Environmental Management

Fluid Environmental Services

Control Control deSólidos

de Sólidos

Control deSólidos

Procesamiento deCortes

Procesamientode Líquidos

Re-inyección decortes y

Transporte

Disposición deDesechos

Central deProcesamiento

Limpieza deTanques

Control of solids in MudCentrifugeSelective Flocculation

Mud dehydrationDecantationFlocculationChemical mixingCentrifugationDilution

Solids disposalLiquid TreatmentMud DehydrationWater treatmentChemical mixingFluids TransferDisposal

Problems while drilling

CPF – Central Processing Facilities

1.2 million bpd320 million scfd

2.4 million BWPD65,000 bpd(250,000 bopd)

320,000 bpd500,000 bpd

In the Oil and Gas industry, CPF belongs to the Upstream activity to described theproduction unit performing the first transformation of the crude oil or raw natural gasafter 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

Industry Standards

• API• ANSI• ASME• BS• GOST• IEEE• ISO• MIL• MSS• NFP• NTC• OSHAS• UL• Ecopetrol• Exxon

Deep Water Horizon– Safety

Deepwater Horizon explosion and blowout

An explosion on the drilling rigDeepwater 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 restingon the seafloor approximately 1,300 feet(400 m) (about a quarter of a mile)northwest of the well.


Rig Systems – Safety - Piper Alpha

Piper Alpha was a North Sea oilproduction platform .

The platform began productionin 1976, first as an oil platformand then later converted to gasproduction. An explosion andthe resulting oil and gas firesdestroyed it on 6 July 1988,killing 167 men, with only 61survivors.


Chemical Industry – Safety -Bhopal

1984

El desastre de Bhopal, ocurrido en 1984 enla región de Bhopal (India), se originó alproducirse una fuga de isocianato de metiloen una fábrica de pesticidas.

Se estima que entre 6.000 y 8.000 personasmurieron en la primera semana tras elescape tóxico y al menos otras 12.000fallecieron posteriormente comoconsecuencia directa de la catástrofe,que afectó a más de 600.000 personas,150.000 de las cuales sufrieron gravessecuelas..

De Wikipedia, la enciclopedia libre

Colombia - Overview

cpiq upstream hydrocarbon industry final

Education