Beyond The Gas Pump Energy From Oil & Gas. Ron Hinn Society of Petroleum Engineers NEED Educators Workshop November 14, 2007 Anaheim, CA

Transcription

1 Beyond The Gas Pump Energy From Oil & Gas Ron Hinn Society of Petroleum Engineers NEED Educators Workshop November 14, 2007 Anaheim, CA

2 Energy Daily A Front & Center Topic USA Today Wednesday, Nov. 14 Pg. 5A CA Oil Spill kills hundreds of birds Pg. 8A Oil Spill Cleanup in Russia Business Oil Prices Drop, But Gasoline Rises Hotel Bed Linens Energy Conservation

3 Our Energy Future Significant Issues of Interest/Importance Enhancing The World s Standard of Living Fueling The World s Economic Growth Alternative Fuels / Sources & Economics Environmental Impact Issues Consumption Improving Energy Efficiency Geo politics

4 Commodities Price & Value Commodity Savy?? NYMEX Closing Prices 11/13/07 West Texas Intermediate Crude ($/bbl) Natural Gas ($/Mcf Mcf) Oil = $91.07/bbl Gas = $7.94/mcf Volumes 1 Barrel = 42 gallons = 672 cups 1 Mcf = 1000 Std. Cubic Standard Temp (60F), Pressure (1atm) Just for fun! Grande $3.50 (est. = 2 cups) 1 Barrel Latte = 672/2 *$3.50 = $ Barrel of WTI = $91.97, 1 cup of WTI = $0.14 Energy contained in 1 cup of crude oil? Assume avg. Car Mileage 25 mpg... Equivalent of 1.6 miles/cup

5 Chemical Composition of Hydrocarbons Crude Oil 84 87% 87% 11 14% 14% % 0.1 2% 0.1 2% Carbon Hydrogen Sulfur Nitrogen Oxygen Natural Gas 65 80% 1 25% 0 0.2% 0.2% 1 15% 15% 0%

6 Petroleum Products A Barrel of Crude Oil Provides: One Barrel = 42 gallons Gasoline 19.5 gallons Fuel Oil 9.2 gallons Jet Fuel 4.1 gallons Asphalt 2.3 gallons Kerosene 0.2 gallons Lubricants 0.5 gallons Petrochemicals, other products 6.2 gallons American Petroleum Institute, 1999

7 Historical Oil Prices 2006 $ Real Oil Prices* Source:BP

8 Historical Energy Use by Type of Fuel (%) % Of Total Usage Wood Coal Oil & Gas Nuclear Hydro Other SPE World Energy Beyond 2050, Arlie Skov

9 Supply & Demand Airline tickets Stocks Real Estate I Phone In a free market commodity prices are driven by the balance between supply and demand For hydrocarbon fuels (oil and gas) the price equation is becoming evermore dominated by supply related challenges.

10 World Energy Consumption BP Statistical Review of World Energy June 2006

11 Oil Consumption BP Statistical Review of World Energy June 2007

12 Major oil trade movements BP Statistical Review of World Energy June 2007

13 Why High Oil Prices? Driven by: OPEC behaviour post 1999 Strong demand growth 2004 Low spare capacity Geopolitics Energy as a financial commodity 3 World Oil Consumption Growth 6 OPEC Spare Capacity Mb/d ROW FSU China Million b/d Est Source:BP

14 OPEC Production Saudi Arabia Iran UAE Kuwait DEC 2005 Production Nigeria Venezuela SPARE CAPACITY Libya Algeria Indonesia Qatar MILLIONS OF BARRELS PER DAY Note: Figures exclude Iraq Source: International Energy Agency

15 Demand Challenge One Example Fuel Economy Overall fuel economy for cars and light trucks peaked at 22.1 mpg in Fell to 20.8 mpg in Avg. weight of vehicles has increased from 3200 lbs. to 4066 lbs. Federal tax on gasoline = 18.4 cents/gallon State tax varies (New York 60.8 to Alaska 26.4) About 70% of new vehicles purchased in US have 6 cylinders + 89% of vehicles in Europe have 4 cylinders or less (average fuel economy is 35 mpg) Wall Street Journal Fuel Economy Back in The Saddle

16 Proved oil reserves at end 2006 BP Statistical Review of World Energy June 2007

17 Proved Natural Gas Reserves BP Statistical Review of World Energy June 2007

18 Proved Coal Reserves 2006 BP Statistical Review of World Energy June 2007

19 A Sampling of What s Cool About Oil & Gas Technology (eg( eg.. Deepwater Jack) Co2/N2 Flooding Increasing Recovery Meeting the world s needs Supplies Efficiency Environment Career Opportunities

20 What Lies Beneath!

21 3 D Reservoir Mapping A 3 d geological cross section of the Stevens reservoir at the Elk Hills field in California. The model delineates the subsurface structure, which traps the oil and gas deposits, and the producing wells penetrating the reservoir.

22 Gas Injection For Enhanced Recovery Nitrogen Injection 1. A cryogenic air separation unit converts air into highly pure nitrogen. 2. Compressed nitrogen is injected into the reservoir via injection wells. 3. The injected nitrogen forces the natural gas and oil toward producing wells. 4. Production wells pump oil, natural gas, water and the injected nitrogen to the surface. 5. The oil and other liquids are separated from the produced natural gas, metered and transported for sale. 6. Nitrogen is separated from the natural gas and reinjected into the reservoir. The natural gas is metered and sold. A 3 d geological cross section at Oxy s Elk Hills field in California. The model delineates the subsurface structure, which traps the oil and gas deposits, and the producing wells penetrating the reservoir. Nitrogen Oil Natural Gas