vagabond venture oil company searches for fossil fuels session 1 what are we after, how do we find...
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VAGABOND VENTURE OIL COMPANY SEARCHES FOR FOSSIL FUELS
Session 1
What are we after, how do we find them,and how do we make a profit?
The course outlineBut first, Geology in the News
Winter Term 2012
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Chesapeake Energy Corp., one of the oil and gas producers most responsible for the current glut of natural gas supply, said it will reduce drilling activity this year as natural gas prices have reached a 10-year low. Cutting 46 drilling rigs to 23.
The current glut of natural gas partly stems from the U.S. energy industry's success with new exploration techniques, notably hydraulic fracturing of shale formations, or fracking. The boom in new production, plus lackluster demand amid a mild winter, helped drive natural gas prices Friday to $2.343 a million British thermal unit, down 26% month over month and down from nearly $14 in July 2008 as supply has far outstripped demand
Geology in the News
The course outline
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Geology in the News
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Geology in the News
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Week 1: Geology of Coal, Oil and Gas (Don)Week 2: History and processes of exploration (Sandi)Week 3: Engineering of exploration/production (Rocky)
The Course Outline
Week 4: ‘Vagabond Venture Oil Company’ finds 4 prospects (together)
Week 5: ‘Vagabond Venture Oil Company’ drills 2 (together)Week 6: ‘Vagabond Venture Oil Company’ finds & produces two fields: one oil & one gas (together)
Vagabond Venture Oil Company offers you a virtual investment opportunity
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Several Ways of Investing in Oil & Gas Projects
1. Invest $’s in the Stock of a Major Oil Company 10 year return on investment = $3-5%
2. Invest $’s in the stock of a Small Oil Company10 year return on investment - $0 to 500%+
3. Invest $’s in the drilling of a single well:10 year return on investment - $0 to 100%X+
4. Invest $’s in the drilling of two or more wells:10 year return on investment - $0 to 1,000%X+
What Vagabonds Oil Company will be offering you
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Investing $’s as a Partner* in Vagabonds Oil & Gas
Invest in:1. drilling a single well, dry $ or completed $$
1. Invest a $ amount in an E & P project for a small % of profits or 2. Pay a % of the cost of an E & P project for a larger % of profits
Your investment return = your % of actual project cost
applied to profits
Partner*: you participate in decisions on major deviations from approved $ expenditures
or2. Two of more wells depending on
the results of initial drilling
What you can study in order to make your investment decision
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Proposed Location
What you can study in order to make your investment decision
Geological report and map Geophysical report and cross sections
Land-lease report and mapDrilling recommendations &
detailed cost flow chart
Introduction:What Natural Resources Burn?
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What are Natural Resources that Burn?
Vegetation: Grass, twigs, wood chunks
Compressed Vegetation: Peat, lignite, coal
Compressed animal remains: Oil and gas
Humans have sought for and fought over these resources from the
beginning of historic time
How are these resources related?
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Natural Resources that Burn
How are these resources related?
Today‘s burnable Vegetation: grass, twigs, wood chunks
They all have an organic origin: either from plants or from “animals”
For example: plants
Yesterday’s Vegetation: peat in inland glacial bogs
Long Ago’s Vegetation: lignite in tropical coastal swamps
Very Long Ago’s Vegetation: coal from buried lignite
Peat briefly
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Peat hand dug from a glacial bog in Scotland
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Commercial peat operation, Ireland
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Peat fired electrical generation, Finland
Peat bogs are found today scattered wherethe recent continental glacier covered
much of the Northern Hemisphere
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Last continental glacier:Eurasia: area of peat bogs
Last continental glacier:North America: areas of peat bogs
Human landpath
Most Recent Continental Glaciation
Leaving peat; next lignite (low grade coal)
First, let’s look at lignite in Texas
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Lignite at or near the surface in Texas
Lignite mining in Texas
Texas lignite: ancient, Gulf of Mexico coastal swamps
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Open Pit Lignite Mining, Texas
Huge drag-line crane removing rock covering the lignite layer
Continuous belt conveyer digs up lignite layer and loads lignite into huge dump trucks
Dump trucks move lignite to nearby furnaces to be burned to make electricity
How do we get layers of lignite in layers of sandstone, shale, and limestones?
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Lignite layer
Cross Section Cartoon of Occurrence of two layers of Lignite
Lignite layer
Land surface
Sandstone layerLimestone layer
Shale layer
How did all this happen?Let’s look at the present-day Texas coast as a possible modern model
Shale layer
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Bays, swamps, & marshes (organic rich mud) = future lignite
Sand = future sandstone
Mud (clay) = future shale
Accumulation of sediments in the Gulf of Mexico An area world famous for Oil and Gas Fields
How do we get several layers of lignite of different ages
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Today’s Bays, swamps, & marshes = future ligniteLong time ago location of bay muds & offshore sands & clays
Younger location of bay muds & offshore sands & clays
Today’s location of bay muds & offshore sands & clays
But before considering oil and gas, let’s look briefly at COAL
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Natural Resources that Burn
How are these resources related?
Today‘s burnable Vegetation: grass, twigs, wood
They all have an organic origin: either from plants or from “animals”
For example: plants
Yesterday’s Vegetation: peat in inland glacial bogs
Long Ago’s Vegetation: lignite in tropical coastal swamps
Very Long Ago’s Vegetation: coal from buried lignite
Coal briefly
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Coal Resources: USA
Why so much soft coal in the central USA?
Lignite
Soft Coal
Hard Coal
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Coal Resources: Central & Eastern USA
Let’s look at the geology of North America at the time when soft coal was being formed
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Land: ancient North America 290 million years ago
Ancient Appalachian Mountains
Vast area of tropical swamps & marshes
A quick look at geologic time
Today’s soft coal areas
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Geologic Time: Last 570 Million Years
570
,000
,000
yea
rsTime of coal formation &building of theAppalachians Mountains
Where does oil & gas fit with thesenatural resources derived from plants?
Time of lignite formation in Texas
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Natural Resources that Burn
How are these resources related?
How are coals related to oil & gas?
Generally speaking; Oil & gas are made from minute, marine
animal remains:Coal is made from tropical swamp plant remains.
In both coal and oil & gas: remains must be prevented from decaying:
usually by PROMPT BURIAL by younger sediments!!
Where might large volumes of plant and animal remains be buried quickly?
Let’s look again at the paleo-geologic map of North America 290 million years ago
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Land: ancient North America 290 million years ago
Ancient Appalachian Mountains
Area of thick sediment accumulation along rising mountains
In the Appalachian Trough both plant and marine animals were quickly buried giving rise to the coal, oil, and gas fields of PA & WV
App
alac
hian
Tro
ugh
Does this paleo-geologic map account for the oil and gas fields of eastern USA?
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Central Texas
Focus on eastern USA
Gray=dry holes!
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Focusing now on a recent geological model for oil & gas:
1. generation 2. migration and
3. entrapment
The Gulf of Mexico geosyncline
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Geology and Oil & Gas Fields: GOM
Gulf of Mexico geosyncline
Focus on this area
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What is a Geosyncline?
Answer: A thick (1000’s of feet) accumulation of rock debris in the ocean at the continental margin
Debris brought to the ocean by rivers and spread along the coast by ocean currents
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OceanRocks of the Iberian continental crust
Geosyncline Example:
land
geosyncline
River debris
river debris
A modern example of a geosyncline: The Gulf of Mexico
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Example of a Geosyncline:Gulf of Mexico
1. Integration of the debris of several rivers
Modern Sediment
Accumulations
Swamp Muds
Shallow water Sands
Deep water Muds
Affect on the North American Continent by the creation of the GOM geosyncline
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Example of a Geosyncline:Gulf of Mexico
Affect on the North American Continent by the creation of the GOM geosyncline
Gulf of Mexico Geosyncline
Oldest part of geosyncline rising
as erosion moves debris into Gulf
Youngest part of geosyncline sinking as
erosional debris is deposited in the Gulf
Hinge Line
rising
Sinking
2. Accumulation of thick layers of debris
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New Orleans
Subsurface Cross Sections Gulf of Mexico Geosyncline
Austin
Sun City
Gulf of Mexico Geosyncline
MatureSourceRocks
SandstoneReservoirRocks
2. Accumulation of thick layers of debris
65,
00
0 fe
et t
hic
k
What is a source rock?
Shale: potentialoil & gas sourceRocks
Gulf ofMexico
What are source & reservoir rocks?
rising
Sinking
Hin
ge L
ine
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What is an oil & gas source rock?Any rock, usually a shale, that yields oil & gas naturally when squeezed
and heated (buried) .
What is a reservoir rock?Any rock, usually a sandstone or limestone,
that will yield oil & gas (or water) whenpenetrated by drilling
Let’s look for source & reservoir rocks in a typical well in the Gulf of Mexico
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Geology and Oil & Gas Fields: GOM
Gulf of Mexico geosyncline
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Geology and Oil & Gas Fields: GOM
Gulf of Mexico geosyncline
Let’s look for source and reservoir rocks in a typical well drilled in the Gulf of Mexico geosyncline
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Typical layers of shale (gray) & sandstone (yellow) in a geosyncline: e.g. Gulf of Mexico
Let’s look at this portion of the well log
Well drill hole
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Sandstone (reservoir)
Shale non-reservoir
Water Oil &/or Gas
Reading a Wire Line Electrical Log
Potential Source Rocks
Reservoir Rocks
Can you read this electrical log?
Depth track: depth below derrick floor
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Reading the electric log of the well
How does oil & gas get from the source rock into the reservoir rock?
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Reservoir rock
Source rock
Source rock
Top of mature (generating) source rock
Oil & Gas escapes at the surface
Unless there is a trap (fence) in the reservoir rock layer
Typical oil and gas trapsA simple fault trap
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Rock Layers can be Broken (faulted)
Fault
Where’s the Oil trapped?
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Week 1: Geology of Coal, Oil and Gas (Don)Week 2: History and processes of exploration (Sandi)Week 3: Engineering of exploration/production (Rocky)
The Course Outline
Week 4: ‘Vagabond Venture Oil Company’ finds 4 prospects (together)
Week 5: ‘Vagabond Venture Oil Company’ drills 2 (together)Week 6: ‘Vagabond Venture Oil Company’ finds & produces two fields: one oil & one gas (together)
NEXT WEEK!NEXT WEEK!