Lecture 1 Introduction GE3244 Fundamentals of Petroleum Exploration What is petroleum exploration? Its the science of understanding the formation, exploration and extraction of oil & gas. Its the upstream side of the petroleum industry GE3244 Lesson Plan Introduction Overview of Petroleum Exploration Origin of Gas, Oil GE3244 About the Lecturer Dr Sandeep Narayan Kundu Email: geosnk@nus.ed.sgOffice: AS3-03-11 Education PhD (Geology), MScTech (Applied Geology), MSc (GIS) Experience 16 years in Industry Fugro Surveys, Reliance E&P, BHP Billiton Research Interests GIS & Remote Sensing Applications Statistical Modeling of Geosciences Sedimentary Geology GE3244 Module Description The existence of commercial deposits of oil and gas depends on geological conditions.These include the presence of a source rock, a reservoir rock and a geological structure to migrate trap and concentrate hydrocarbons.This module focuses on the sedimentary cycle and its significance for understanding the subsurface environments in which hydrocarbon resources accumulate. The module provides a useful introduction to geological information used by the upstream petroleum industry. GE3244 Learning Outcomes This module provides student with a glimpse of this world of geoscience in action. This will provide students with an appreciation of the kind of skills and activities employed in the upstream petroleum industry, an increasing important sector in Singapore. The lectures and seminars will focus on introducing topics including sedimentology, carbonate systems and reservoir structure. This is supported through practical exercises in geological map interpretation and seismic survey. Its all about finding Petroleum GE3244 Assessments 60% Continual Assessment 2 individual assessments (10 + 10%) 1 group presentation/report (10 + 20%) Mid-semester test Week 7 (10%) 40% End of Semester Examination Lectures and Lab/Tutorials are compulsory Saturday Excursion in Week 6 (Sept 20th) is not compulsory BUT you are strongly advised to attend as this will greatly add to your knowledge and experience and help you in the lab/tutorials and exam Lecture PPTs shall be posted the previous week Some lectures may have breeze video versions available in IVLE GE3244 Syllabus & Timetable Week 1: Introduction-Origin of petroleumWeek 2: Migration, traps, seals and reservoirs Week 3: More traps. Exploration, drilling, logging. Lab/Tut : Seismic interpretation*. Week 4: Wireline logging, stratigraphy and sedimentology. Week 5: Sandstones and shale. Lab/tut Sedimentary Rocks* Week 6: Limestones. Allocation of Group Presentations/Individual Reports.Excursion to Sentosa, afternoon of 19th Sept. RECESS WEEK Week 7: Sedimentary basins. Mid-semester test 1st Oct during lecture.Lab/tut: Preparation for Group Presentations. Week 8: Reservoir appraisal.Week 9: Petroleum production. Lab/Tut: Group Presentations to Class.* Week 10: Oil, Environment & Climate Change (OR Invited Lecture) Week 11: Petroleum Exploration & Production in SE Asia.Lab/Tut: Map Interpretation* Week 12:The Future of Oil & Gas. Week 13: SEAPEX Oil Barrel Prize: Presentation by Finalists*. Hand in group reports by the end of Week 13. *assessed GE3244 Minor in Petroleum Exploration The Minor in Petroleum Exploration would appeal to students who are interested in the upstream petroleum industry. Singapore is the world class hub for the petroleum industry in Southeast Asia. Starting in 2008, the Southeast Asian Exploration Society (SEAPEX) funded a Visiting Senior Fellow to teach the geosciences in NUS. According to a survey in Nature (13th May 2011, Earth Works, (473):243-244), there will be 13,000 unfilled petroleum geosciences jobs in the USA by 2030. GE3244 Minor in Petroleum Exploration By 2018 there will be a 28% increase in geosciences jobs compared to 2008, 35 % if retirements are included. These trends will undoubtedly be followed in Southeast Asia. Salaries for recent graduate petroleum geoscientists are among the highest (American Association of Petroleum Geologists, Explorer April, 2012). Therefore, NUS has introduced a new Minor in Petroleum Exploration (with funding from SEAPEX and the Singapore Economic Development Board). GE3244 Minor in Petroleum Exploration A student who wishes to graduate with a Minor in Petroleum Exploration will take their normal 1st year foundation modules. In the 2nd, 3rd or 4thyear they will elect to take modules such as GE3244 Fundamentals of Petroleum Geoscience, GE2230 Energy Futures, GE3243 Sediments and Sedimentary Basins, GE3242 Applied Petroleum Exploration GE3244 Minor in Petroleum Exploration So sign up Now!! GE3244 SEAPEX, or the South East Asia Petroleum Exploration Society is a non-profit organization that was established in 1973. A voluntary organization SEAPEX has developed itself to have over 1,600 active members worldwide.

Some objectives of SEAPEX are to: Advance the science of geology and related earth sciences for petroleum and gas exploration, development and production specifically in South East Asia Act as a body to improve awareness of oil and gas industry issues in the community Foster a spirit of scientific research Disseminate information related to petroleum geoscience GE3244 Download the form from IVLE, fill your particulars and hand in to me by 25th August Membership allows you to participate in the Oil Barrel Prize SEAPEX Oil Barrel Prize (SGD 2,000) GE3244 How do you learn ? Before the lecture Prepare well by going through the uploaded slides in IVLE Look-up highlighted items Identify slides or lines which you would like to know more of During the Lecture Listen well and take short notes (bring laptops if comfortable) Look for an opportunity to ask questions (if any) After the Lecture Revisit the slides Expand your notes using referred books, internet (Wikipedia) Email me for clarification/consultation on doubts GE3244 What books to read ? Wicander, R and Monroe, E. 2009. Essentials of Physical Geology. 5th edition. Hyne, N.J. 2002. Nontechnical guide to petroleum geology, exploration, drilling and production. 2nd edition. Selley, R. 1998. Elements of petroleum geology. 2nd edition. Fraser, J. et al. 1997. Petroleum Geology of Southeast Asia. More books (including these) are listed in I VLE Best references are provided in Wikipedia for each subject matter GE3244 Where it all started? 3000 BC Oil seeps in Bagdad 1854 Pennsylvania, USA 1878 Canada, Venezuela, Mexico Earliest recorded price 16 US cents a gallon! USA peaked production in 1960s, thereafter Middle East took over. In 1961 the Organization of the Petroleum Exporting Countries (OPEC) was established 1860 Romania 1908 - Iran 1923 Iraq 1932- Bahrain 1938 -Kuwait GE3244 Where it is happening today? Off-shore As on land & shallow-water oil reserves dwindle, deep-water oilfields at the edge of the continental shelf are being explored. Shell has developed Mars, a 500-million-barrel oilfield, in 900 m of water, off-shore Gulf of Mexico. We now have the technology to drill wells in 3,000 m depth of waterArctic Since OPEC's price rises in 1973 new technologies were introduced to pump oil from offshore and from the Arctic (the Alaska pipeline) Unconventional Oil E.g. Shale gas, oil sands, Coal bed Methane GE3244 Whats aBarrel of Oil ? As the oil industry grew during the 19th Century explorers needed to find a way to transport it around the country. Inspiration came from the whiskey industry which transported the golden liquid in wooden barrels of a standard size of 42 US gallons. 1 Barrel=42 US gallons4.972 Imperial gallons158.987 LitresGE3244 Whats in a Barrel of Oil ? GE3244 What products from Oil ? The modern World cant function without oil and gas GE3244 The modern World cant function without oil and gas What products from Oil ? GE3244 What does oil cost? https://en.wikipedia.org/wiki/Price_of_oil#/media/File:Brent_Spot_monthly.svg GE3244 Why cost of Oil varies? In 2006, average production cost to bring a barrel of oil to the surface ranged from $4 per barrel (excluding taxes) in Africa, $6.83 in USA, $8.30 in Canada. Exploration & development costs vary by region.2003-2006 $5.26/barrel in the Middle East $63.71/barrel for deep U.S. offshore. 2008 : Middle East said to be producing at $US13.50 a barrel. Peak selling at $US147!!! 2014: Everyone is happy at ~$80 a barrel, very happy at $100! TODAY Price is $49 a barrel GE3244 How long shall Oil Last? Estimated reserves: 800 billions of barrels,World consumption: 76 millions barrels per day So only 27 years of oil is left at present rate of consumption SHOULD WE PANIC!!! US Geological Survey estimates 3 trillion Barrels still to be found three times the oil reserves known todayThe real issue is when will production be insufficient to cover demand? GE3244 Have we Peaked already? Have we peaked?? GE3244 Why demand for oil varies? GE3244 Will production always keep up with demand? GE3244 How does Oil look like? Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or greenish). Crude oil may also be found in semi-solid form mixed with sand, as in the Athabasca Oil (Canada) where it may be referred to as crude bitumen GE3244 Where does Oil & Gas come from? http://www.oringcng.com/where-does-cng-come-from/ Source RockReservoir RockSeal RockPetroleum Trap GE3244 How Old is Oil & Gas ? South East Oil North Sea Oil North Sea Gas GE3244 What is oil composed of ? courseware.e-education.psu.edu GE3244 Where to look for Oil? https://commons.wikimedia.org/wiki/File:Oil_traps.svg GE3244 How do we explore it? Anticlinal trap Fault trap GE3244 How do we discover it? Singapore is world leader in jack-up rigs GE3244 How do we produce oil? www.gazprom.com GE3244 How do we transport it? GE3244 What is Downstream? GE3244 Where on earth does oil occur? GE3244 Where in South East Asia? GE3244 How Geoscience helps? Geology is Important Understanding of earths history and sedimentary processes are key GE3244 How Geoscience helps? Identify paleoenvironment GE3244 Summary so far History of Oil Origin of Oil Composition of Oil How to find Oil GE3244 GE3244 Petroleum Petroleum is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds. The word Petroleum is coined from two latin words----Petra meaning rock----Oleum meaning oil GE3244 Petroleum GE3244 Hydrocarbons Is made from paraffin-like hydrocarbon molecules Methane CH4 70 - 98% = pipeline house gas Ethane C2H61 10% Propane C3H8trace to 5% = LPG Butane C4H10 trace to 2% H2S rotten eggs = sour gas Very corrosive Inert gases CO2, N, He He from radioactive decay of K40 in granite GE3244 Hydrocarbon Gas & Oil Non-associated natural gas (nearly pure methane) is not in contact with oil in the sub-surface. Associated natural gas occurs in contact with crude oil and gas in the subsurface both in the free gas cap and solution gas Condensate In some gas reservoirs at high temp, shorter-chain liquid hydrocarbons (5 - 7 C atoms) occur as a gas. When this gas is produced at the surface, the T decreases and the liquid hydrocarbons condense out of the gas. The liquid is nearly pure gasoline: gets mixed with high-octane refinery gasoline. Wet gas is natural gas that contains condensate. Dry gas does not. GE3244 Gas-Oil Ratio (GOR) Gas is dissolved in crude oil because of high underground pressure. The gas/oil ratio (GOR) is the amount of gas dissolved in the oil in the reservoir under surface conditions. When crude oil is lifted, the Pressure is relieved and the solution gas bubbles out giving the producing gas-oil ratio of a well (GOR). As the gas bubbles out, the oil volume shrinks GE3244 A Gas flare GE3244 Composition of Petroleum Mostly Hydrocarbons like alkanes, cycloalkanes aromatic hydrocarbonsOthers oxygen and sulfur Trace metals as iron,nickel, copper & vanadium Composition range ElementOilGas C84 - 8765 - 80 H11 - 141 - 25 S0.06 - 20 0.2 N0.1 - 21-15 O0.1 - 20 Composition by weight HydrocarbonAverageRange Paraffins (Alkanes)30%15 to 60% Napthenes(Cycloalkanes) 49%30 to 60% Aromatics15%3 to 30% Asphaltics6%remainder GE3244 Chemical analysis of Crude Molecules from crude oil samples are typically extracted in a solvent, then separated in a gas chromatograph, and determined with a suitable detector, such as a flame ionization detector or a mass spectrometer. Gas-liquidchromatographyGE3244 Hydrocarbons Alkanes (Paraffins) Alkanes are organic compounds that consist entirely of single-bonded carbon and hydrogen atoms and lack any other functional groups.Alkanes have the general formula (CnH2n+2) Examples Methane Ethane Propane GE3244 Hydrocarbons Cycloalkanes (Napthenes) Are hydrocarbon compounds that have one or more rings of carbon atoms in the chemical structure of their molecules General formula is CnH2(n+1-g) Example Cyclobutane GE3244 Hydrocarbons Aromatics Hydrocarbons The term 'aromatic' was coined as such simply because many of the compounds have a sweet or pleasant odor.Its simplest form is Benzene that has a configuration of six carbon atoms. Aromatic hydrocarbons can be monocyclic (MAH) or polycyclic (PAH). GE3244 Quality of Crude API Gravity Crude oils are compared and described by their density. API is the most common used density scale. API stands for the American Petroleum Institute, Washington. API = [(141.5 / specific gravity at 60oF) 131.5] Water has an API of 10.The API of crude oils varies from 5 to 55. Average crudes are 25 to 35. Light oils are 35 45, very fluid, transparent, gasoline-rich, the most valuable. Heavy oils are below 25, very viscous, dark coloured, much asphalt, less valuable GE3244 Kerogen & Petroleum Kerogen is a mixture of organic chemical compounds that make up a portion of the organic matter in sedimentary rocks It is insoluble in normal organic solvents because of the high molecular weight Organic content that is soluble is called Bitumen GE3244 Kerogen & Petroleum Kerogen types determine the type of hydrocarbon that can mature from it. Van Krevelins diagram differentiates between the kerogen types by plotting H/C versus O/C ratio. Types of Kerogen Type 1 Algal matter of lacustrine origin, oil prone Type II Marine origin, oil and gas prone Type III Plant origin, coal and gas prone Type IV - Charcoal GE3244 Kerogen & Petroleum Cooking of Kerogen yields Petroleum Also known as Thermal maturity of Kerogen Arrhenius Equation: K = Ae-Ea/RTwhere K = rate,A = constant,Ea = activation constant R = gas constant,T = temperature The petroleum system needs an oil and gas kitchen GE3244 Crude Oil Crude Oil is a liquid fossil fuel that is very viscous and black in appearance. It is a mixture of lots of different hydrocarbons, some of these hydrocarbon chains are very long, others are very short. Depending on the length of the hydrocarbon we have different uses for each one. The longer the hydrocarbon: The higher the boiling point The higher the viscosity The darker the color The lower the flammability Due to the different boiling points, crude oil can be separated into fractions (parts) by heating it in a process called fractional distillation. GE3244 Refining of Petroleum Fractional Distillation Singapore is the 3rd biggest petrochemical producer in the world After Texas/Lou and Amsterdam/Rotterdam GE3244 Refining of Petroleum Catalytic cracking, or "cat cracking," is the basic gasoline-making process. Using intense heat (about 500 degrees centigrade), low pressure and a powdered catalyst, the cat cracker can convert most heavy fractions into smaller gasoline molecules.Hydrocracking applies the same principles using catalysts at slightly lower temperatures, much greater pressure and hydrogen to obtain chemical reactions. Cokers, use heat and moderate pressure to turn residuum into lighter products and a hard, coal-like substance that is used as an industrial fuel.Alkylation, essentially is cracking in reverse: makes gasoline components by combining some of the gaseous byproducts of cracking. GE3244 Refining of Petroleum GE3244 Conclusion Petroleum and its products are important to the future of the world. Petroleum oil and gas forms from the thermal maturation of buried Kerogen. Formed in the oil (70200 oC) and gas (>200-400 oC) windows Natural gas is mostly methane, associated with crude oil Petroleum is a mixture of Hydrocarbons which includealkanes, cycloalkanes, aromatics Fractional distillation and cracking produce usable products from Petroleum crude. Kerogen types characterize the source organic content and determine the hydrocarbon product which can be cooked out of them A petroleum geoscientist needs to have a good understanding of Geology, Geography, Chemistry, Physics, Math's, Biology and Engineering GE3244 Next lecture Maturation, Migration, Traps, and Seals GE3244 Any Questions??