introduction to hydrocarbon exploration and production
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Introduction to Hydrocarbon Exploration and ProductionTRANSCRIPT
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Introduction to Hydrocarbon Introduction to Hydrocarbon Exploration and ProductionExploration and Production
Lisa SongFeb 15, 2013
Disclaimer:
The views and opinions expressed in this presentation are those of the author and do not necessarily reflect the those of the author and do not necessarily reflect the official policy or position of any companies. Examples of analysis performed within this presentation are only examples. Assumptions made within the analysis are not reflective of the position of any of the author’s employers.
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AGENDA
The Field Life Cycle◦ Exploration Searching for Hydrocarbon Reservoir Characterization – Well logging◦ Appraisal◦ Development Drilling and Well Planning Drilling System and Equipment People on the Rigs
10 mins Break
People on the Rigs◦ Production◦ Abandonment
Open Q & A Post Test (15 questions)
Where does Upstream Fit?
Trade/Transport
Process/ Manufacture
Store/Distribute
MarketExploration &
Production
Mid D tMidstreamGas Pipelines
Liquefied Natural Gas(LNG)
Gas to Liquid (GTL)Trading and Risk MgtWholesale Trading
DownstreamLiquid Pipelines
LubricantsRefining
Supply & TradingRetail
Upstream
Exploration & Production (E&P)
Accenture, 2007
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The Field Life Cycle
Key Phases of the E&P Lifecycle
APPRAISALEXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
The Field Life Cycle Exploration
At the end of this session, you will be able to:
• Mention the main objective of exploration phase.
• Mention the 5 conditions for the existence of the hydrocarbon.
• Describe the objective of well logging.
APPRAISAL DEVELOPMENT PRODUCTION ABANDONMENTEXPLORATION
• Mention the parameter to be solved in Archie equation.
• Mention at least 4 different job positions in the exploration phase.
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The Field Life Cycle Exploration
• Searching for Hydrocarbons:• Overview and Objectives.• Petroleum Migration & Accumulation• Seismic Data Acquisition• Subsurface Map from Logging
APPRAISAL DEVELOPMENT PRODUCTION ABANDONMENTEXPLORATION
• Reservoir Characterization – Well Logging:• Wireline Logging Rig Up.• Logging Unit• Objectives of Well Logging• Archie Equation
• The Exploration Team
Exploring E&P Assets – Overview
Objective Find new hydrocarbons. The primary way in which companies replace their reserves
d It i t f t il and grow. It is a necessary core competency of upstream oil and gas company.
xpen
sive
wer
are
a
• Typical sequence of activities:Broad surveying gather information at low cost over an extend of entire basin.
Develop a coarse seismic map to define exploration leads – play development.
Mo
re e
x
Nar
row
Continue with more detailed investigations to define a prospect.
Drill an exploration well – a wildcat to collect well data to generate subsurface map.
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Exploring E&P Assets – Petroleum Migration and Accumulations
Conditions for existence of hydrocarbon accumulation:1 S R k1. Source Rocks2. Migration Paths3. Reservoir4. Trap5. Cap Rock/Seals
https://learning2.chevron.com/content/ss/chevron_ETC/IHRDC3/
Exploring E&P Assets – Seismic Data Acquisition
Seismic survey mechanicsObjective is to produce an acoustic image of the Objective is to produce an acoustic image of the subsurface.Generation of artificial shock waves which propagate through to the reservoir rocks and beyond.
Jahn et al, Hydrocarbon Exploration and Production, 2008
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Exploring E&P Assets – Subsurface Map from Log
https://learning2.chevron.com/content/ss/chevron_ETC/IHRDC3/
Reservoir Characterization: Well Logging - Wireline
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Wireline Engineer
Company ManAcquisition Equipment
View of a Logging Unit
Company Man
Unit Engine
Winchman
Wireline cable todownhole tools
Cable drum
www.slb.com
Objectives of Well LoggingLowering of sensors into the (open) wellbore using a wireline cable to provide the customer with answers such as:
•Lithology – the types of rock formations?
•Resistivity – what fluid is in the rock?
•Porosity – how much space is in the formation?
•Fluid type – Hydrocarbon or not?Fluid type Hydrocarbon or not?
•Formation Mechanical Properties
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ARCHIE Equation
Rt
RwSw
2 SwSo 1
Rt = Formation resistivity (ohm)Rw = Formation Water Resistivity (ohm)= Porosity (%)Sw = Water Saturation (%) So = Oil Saturation (%)
Exploring E&P Assets – The Exploration Team Geologist: a specialist in the application of geology to the search
for oil and gas in sedimentary basins. Geophysicist: a specialist who applies the laws of physics (seismic) p y p pp p y ( )
to the search for oil and gas in sedimentary basins. Petrophysicist: a specialist who applies the laws of physics and
chemistry to the study the formation rocks and fluids properties by utilizing well log measurement.
Drilling Engineer: an engineer who can plan and oversee the drilling of exploration and appraisal wells.
Reservoir Engineer: a specialist in the technology and use of reservoir simulation models to estimate resources and reserves and to plan the optimal subsurface development plan for a and to plan the optimal subsurface development plan for a reservoir, including well locations and production profiles.
Financial Specialist: an individual who gathers data and uses financial models to prepare financial projections for petroleum prospects, including the petroleum industry’s standard project financial indices.
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EXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
The Field Life Cycle Appraisal
APPRAISALEXPLORATION DEVELOPMENT PRODUCTION ABANDONMENTAPPRAISAL
At the end of this session, you will be able to:
• Mention the main objective of appraisal phase.
• Define resources and reserves
• Mention 5 parameters needed in resources calculation.
EXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
The Field Life Cycle Appraisal
APPRAISAL
The role of appraisal in the field life cycle. Provide effective information to decide whether or not to develop the
field.
Reduce the uncertainty of reservoir description: producible volumes, etc
O O DEVELOPMENT PRODUCTION ABANDONMENTAPPRAISAL
Look at various technical options to develop the field.
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Appraising E&P Assets – Resource to Reserve Classifications
• Resources: Amount of oil originally in place (reservoir)Resources: Amount of oil originally in place (reservoir)
• Resources are estimated based on interpretation of geologic and/or engineering data.
• Reserves: Amount of oil which can be recovered with the current technology.
• Reserves are categorized by their degree of uncertainty withReserves are categorized by their degree of uncertainty with the two major classifications being “proved” or “unproved”.
• Fundamentally, reserves can be considered as “inventory”.
Appraising E&P Assets – Resource to Reserve Classifications
Resources (STOOIP) = A*h* ϕ *So/Bo
Reserves = Resources * Recovery Factor
STOOIP = Stock Tank Oil Originally in PlaceA = reservoir areaA reservoir areah = average reservoir thickness= Porosity (%)So = Oil Saturation (%) Bo = oil shrinkage factor
=
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The Field Life Cycle Development
APPRAISALEXPLORATION PRODUCTION ABANDONMENTDEVELOPMENT
At the end of this session, you will be able to:
• Mention the main objective of development phase.
• Mention 3 basic functions during a drilling operation.
• Mention 2 rig categories based on its location.
• Mention 5 different people on the rig with their respective main duties.
The Field Life Cycle Development
APPRAISALEXPLORATION PRODUCTION ABANDONMENTDEVELOPMENT
The role of development stage in the field life cycle is to provide and execute the field development plan which includes: Project objective and specification.
W ll i i ( ll d illi ) Well engineering (well type, drilling, etc).
Facilities engineering (extraction, separation, transportation, processing plant etc).
Cost and manpower.
Operational and maintenance policy and standard.
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Developing E&P Assets – Drilling and Well Planning
Feasibility studies estimate number of wells based on: The type of d l ( i j i d l i d i ) d Th development (gas cap, water injection, depletion drive) and The production/injection potential of individual wells. Reservoir simulation efforts are important in this phase.
• Drilling of a well requires a large capital expenditure.• Successful drilling engineering requires the integration of many
disciplines and skills that will be used throughout the life of the potential field: Geologists and geophysicists – type and depth of rock formations, objectives zones,
etc. Petrophysicists – fluid distribution information. Reservoir engineers – Prognosis of subsurface pressures along well trajectory,
estimating well/field performance, typically acts as the project economist.
Accenture, 2007
Developing E&P Assets – Drilling System and Equipment
Three basic functions during drilling operations:◦ Torque is transmitted
through the drill string to a drill bit.
◦ Drilling fluids are circulated down the drill pipe and up the annulus to carry cuttings, clean the hole, cool bit, and lubricate drill stringlubricate drill string.
◦ Subsurface pressures are controlled by the weight of drilling fluids and by large valve assemblies at the surface.
Accenture, 2007
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Developing E&P Assets – Drilling System and Equipment
Drilling Problems – Causes of “Downtime” or “Lostof Downtime or Lost Time”
Stuck Pipe - A situation where the drill string cannot be moved up or down or rotated in the hole.
Fishing - Retrieval of a foreign bj t f th b h lobject from the borehole.
Accenture, 2007
Developing E&P Assets – Rig Types and Selection
Type of rig selected depends on various factors: Dina #1 Overlooking Battle River Valleyvarious factors:◦ Cost, availability, and
environmental requirements◦ Water depth or location
(offshore)◦ Mobility/transportability (onshore)◦ Depth of target zones and
expected formation pressures
Dina #1 Overlooking Battle River Valleyin Saskatchewan (summer 1937)
expected formation pressures.◦ Prevailing weather conditions in
the area of operation.◦ Quality of the drilling crew
(including the safety record).
Accenture, 2007
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Land Rigs
Developing E&P Assets – Rig Type and Selection (Cont’d)
A land rig can be found anywhere on the planet. It can be in a jungle or on top of a mountain, in the desert sands or in the middle of city. Wherever the rig is placed, a large area must be cleared to
facilitate the operations.
www.slb.com
Developing E&P Assets – Rig Type and Selection (Cont’d)
Offshore Rigs• Offshore drilling operations and equipment are similar to those on land.• Major difference between onshore and offshore rigs is the platform upon which
the rig is mounted. • Costs typically increase with water depth.• Type of rig utilized depends on characteristics of operating environment.
Jahn et al, Hydrocarbon Exploration and Production, 2008
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OFFSHORE RIGS
Semi-Submersible
Also called a ‘Floater’ or a ‘Semi’. This rig can be used in relatively deeper waters.
The JACK-UP (above and top-left)
This rigs stands on three-legs. This is used in relatively shallow waters.
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Artificial Island
In really shallow waters an artificial island is created.
OTHER OFFSHORE RIGS
How will you get to the office?
You will nearly always fly to the rigs on helicopters.
DRILL SHIPS
In ultra-Deep waters, Drill-ships like this one are often used
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OFFSHORE PLATFORMS
Many of the cased-hole operations occur on Production platforms such as this one.
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RIGS COMPONENTS
1. Crown Block
2. Catline Boom and Hoist Line
14. Fuel Tanks
15. Electric House
16 Mud Pump3. Drilling Line
4. Monkey Board
5. Travelling Block
6. Top Drive
7. Mast
8. Drill Pipe
9. Dog House
10 Blowout Preventer
16. Mud Pump
17. Bulk Mud Components in Storage
18. Mud Pits
19. Reserve Pits
20. Mud Gas Separator
21. Shale Shaker
22. Choke Manifold10. Blowout Preventer
11. Water Tank
12. Electric cable Tray
13. Engine generator Sets
23. Pipe Ramp
24. Pipe Racks
25. Accumulator
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Crown BlockCrown Block
Traveling BlockTraveling Block
HookHook
SwivelSwivel
Draw WorksDraw Works
Mud PumpMud PumpRotary TableRotary Table
KellyKelly
Mud HoseMud Hose
24803
inging
ee
CasingCasing
BitBit
Drill PipeDrill PipeDrilling MudDrilling Mud
Accenture, 2007
People on the Rig-1
A COMPANY MAN is a representative of an oil-drilling company (e.gShell BP) Other terms that may be used are Company RepresentativeShell, BP). Other terms that may be used are Company Representative, Drilling Engineer, or Rig site Leader. He has overall control of the rig-site and authority in all matters. All operational issues should be discussed with the Company Man. He will give you all the information you need about the well and the drilling.
The TOOL PUSHER is the person responsible for all operations on a Drilling Rig They are also known as rig managerson a Drilling Rig. They are also known as rig managers.
Tool pushers are in charge of keeping the rig and all necessary tools and equipment, supplies, etc. They work closely in conjunction with the company man in regards to the actual drilling of the well.
Tool-pushers also take on an administrative role.
Usually a tool pusher has started at the bottom and worked his way up and has been in the industry for a number of years.
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People on the Rig 2A DRILLER is the supervisor of the Rig Crew
The driller operates the pumps, draw-works, and rotary table via the drillers console - a control room of gauges, control levers, rheostats,
and other pneumatic, hydraulic and electronic instrumentation. The driller also operates the draw works brake using a long-handled lever.
Hence, the driller is sometimes referred to as the person who is "on the
Roughneck is a low-ranking member of the Drilling crew. A roughneck usually performs semiskilled and unskilled manual labor. They report to the Driller
A Roustabout is an Un-skilled laborer that does general duties around the rig. They can be promoted to become Roughnecks. They also report to the driller.
brake."
Derrick-man reports directly to the Driller. The name derrick man comes from the position that he normally occupies, which is at the top of the Derrick. From this position, he guides the stands of drill-pipe (typically 90 ft long) into the fingers at the top of the derrick while tripping out of the hole. When tripping into the hole he will pull the pipe out of the fingers and guide it into the top drive or the block.
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People on the Rig 3
Mud Engineer’s job is to determine the correct Mud, also called drilling fluid, to use for the well, advising treatment and monitoring its condition. Main properties monitored are density,
viscosity, chemical parameters and solids content. If properties divert from mud program mud engineer will notify drilling crew and company man and advise treatment.
A mudlogger tasked with gathering data and collecting samples during the drilling of a well and organizing this information in the form of a graphic log, showing the data charted on a graphic representation of the wellbore. Mudloggersobserve and interpret the indicators in the mud returns during the drilling process. The mudlogger logs at regular intervals, properties such as drilling rate, mud weight, flow line temperature, natural gas content and type, oil indicators, pump pressure, pump rate, lithology (rock type) of the drill cuttings, and various other items of interest
g y g p y
Oil companies use geologists' to help them locate oil and Gas deposits. They will look at the Data from the well such as the mud-logs and the Wireline logs and make sure that the
geological objectives of the well are met. He may be the witness of the Wireline log.
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People on the Rig 4He or she is responsible for carrying out a host of complex, technical operations on the rig.
Normally, Rig personnel have no idea what the Wireline Engineer does. He or She is usually the youngest person on the rig and very well educated. They always show great respect and
professionalism towards all rig-workers at all times on the Rig.
The WIRELINE ENGINEER
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Developing E&P Assets – Casing the Well
• As the well is drilled, casing is set in the wellbore. Casing serves to:wellbore. Casing serves to:
• Protect groundwater supply• Protect the integrity and stability of the wellbore.
• Provide a framework for setting completion equipment to permit flow of hydrocarbons to the surface.
• Casing is set into place using cement.
• Casing that does not extend to the surface is referred to as a “liner”.
Accenture, 2007
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Developing E&P Assets – Well Completions
Purpose of well completion is to provide a safe mean for fluid pflow from reservoir to flow line.
Perforations provide communication between wellbore and reservoir.
Production packer isolates reservoir and annulus.
Well completions tailored to individual wellsindividual wells.• Hydraulic Fracturing• Gravel packs
Accenture, 2007
The Field Life Cycle Production
APPRAISALEXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
At the end of this session, you will be able to:
• Mention the 2 main categories of aspects in production phase.
• Mention the main objective of abandonment phase.
• Mention/draw the main components of the field life cycle graph.y g
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The Field Life Cycle Production
Subsurface Characteristics:
Reservoir performance and
Surface Facilities:
Gathering separation
APPRAISALEXPLORATION DEVELOPMENT ABANDONMENTPRODUCTION
The role of production stage to manage subsurface characteristics and the surface facilities.
Reservoir performance and recovery.
Reservoir Monitoring.
Workovers and production enhancements.
Gathering, separation, transportation and storage.
Managing capacity constraints.
Producing E&P Assets – Well Performance
Objective of managing well performance is to reduce the constraints the well may impose on the production of hydrocarbons from the reservoir, y p p y ,for examples: Damage skin Sand Production Scaling Producing Unwanted FluidsTubing String design with restriction to flow
To achieve reservoir potential, well constraints should be reduced where economically viable.
Numerous techniques available: acidizing, workover, artificial lift techniques, multi-lateral wells, infill, etc.
Accenture, 2007
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Producing E&P Assets – Workover Activity in Production Phase
Wells are “worked over” to increase d i d i production, reduce operating costs, or
reinstate their technical integrity. Well production can be negatively
affected by:◦ Mechanical damage◦ Flow restriction: sand, wax, scale◦ Water or gas breakthrough◦ Cross flow in well or behind casing
In extreme cases, the production In extreme cases, the production interval is plugged back and a “side-track” well is drilled.
Accenture, 2007
The Field Life Cycle Abandonment
Economic Life of a Field Consideration in the Decommissioning Methods
• Plugging and abandonment techniques – isolation of all hydrocarbon bearing zone.• Isolation and protection of aquifers.
APPRAISALEXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
p q• Removal of wellhead equipment.• Potential impact on human health, safety and environment.• Costs of the plan
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Abandoning E&P Assets – Economic Life of a Field
Jahn et al, Hydrocarbon Exploration and Production, 2008
The Field Life Cycle
Key Phases of the E&P Lifecycle
APPRAISALEXPLORATION DEVELOPMENT PRODUCTION ABANDONMENT
P t T t Post Test