Tim Carr - West Virginia University

Transcription

1 Tim Carr - West Virginia University

2 January 10th 1870, Ohio, United States of America Six business men submit a document of incorporation to the registry office in Cleveland, Ohio. The group comprises a chemist, an owner of general stores, a distiller, a failed salt miner and two sons of an itinerant snake oil salesman and con artist. Doesn t sound like the type of group that will make history, does it? Now, factor in that said conman s name was William Avery Rockefeller, Sr., the two sons in question are John Davison Rockefeller and William Avery Rockefeller and the company is to be called Standard Oil, and maybe we can rethink that making history judgment? In the 41 years that the company traded before its dismemberment under the Sherman Antitrust Act, it had the monopoly on the production, transport, refining and marketing of oil based products in the United States. Its separation into 33 smaller companies would make John D. Rockefeller the richest man of all time, and the Standard Oil legacy lives on across the supermajors, that still dominate the industry to this day. 2

3 Historical Review of Petroleum Industry Role of Petroleum Geology Measurement Units and Conversion Factors 3

4 Petroleum (πετρέλαιον, Greek) Petra= Rock Oleum= Oil Term first used by Agricola in

5 First oil wells in China by 347 AD, down to 1000 ft. as part of salt production Natural gas use in Japan and China prior to 10th century Bagdad had streets paved with tar in the Middle Ages Marco Polo (13 th century) described the oil fields of Baku (Azerbaijan) Persian alchemists first distilled kerosene in the 9 th century Tar sands were mined in France during the Renaissance 5

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7 Asphaltum in Oil seep in Santa Barbara, CA. USGS Photo 7

8 Gas seep in Ventura County, CA emits methane, ethane, propane. USGS Photo 8

9 Seep 9

10 The discovery was important but only produced about 25 barrels per day Col. Edwin Drake 10

11 By % of world oil production came from the Appalachian basin (PA, NY, WV) 70,000 barrel of oil per day 11

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13 Pumping oil into a reservoir lake! 13

14 The Lucas Gusher produced over 100, 000 barrels of oil per day into the air before the well could be capped and controlled This was the first realization that a significant supply of the well-known fuel could be achieved. It was also the first time that fortunes were made in the oil fields. 14

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16 The Cerro Azul #4 flowed 850, 000 barrels of oil between February before it was capped and controlled. The well produced over 57 million barrels in its lifetime. 16

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22 Exploration Landmen Geologists Geoscientists Drilling Engineers Production Engineers Reservoir Engineers Chemists and Chemical Engineers Civil Engineers Electrical Engineers Structural Engineers Economists Environmental Engineers Computer Scientists Development Production Abandonment & Reclamation 22

23 The petroleum industry uses more computing power on a daily basis than any other industry 23

24 Houston Geologic Society 24

25 Houston Geologic Society SALT 25

26 g a s oil S A L T S A L T Houston Geologic Society Seismic data courtesy of PGS Marine Geophysical NSA 26

27 Houston Geologic Society 27

28 Houston Geologic Society 28

29 Future well location ELEVATION (FEET) S A L T S A L T Location of seismic line and cross-section GAS OIL SALT Houston Geologic Society WATER 29

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31 Petroleum System Elements Anticlinal Trap Top Seal Rock (Impermeable) Reservoir Rock (Porous/Permeable) Potential Migration Route Source Rock (Organic Rich)

32 Petroleum System Elements Gas Cap Oil Entrapment Accumulation Water Seal Rock Reservoir Rock Migration 120 F Generation Source Rock 350 F

33 Trap Must Be Available Before/During Migration Trap Processes: Generation Migration Accumulation and Preservation Elements: Source Rock Migration Avenue Reservoir and Seal 33

34 Hydrocarbons, Petroleum, Oil, Gas, Oh My? Hydrocarbons Chemical molecules that contain only hydrogen and carbon and can be crude Oil, Gas, Coal and other material Petroleum Refers collectively to crude oil, natural gas, natural gas liquids and solid hydrocarbon mixtures like tar and asphalt Crude oil is a liquid both underground and at normal surface conditions Natural gas is a vapor at normal surface conditions. Underground it can exist as a vapor or similar to carbonated soda in solution with crude oil. Natural Gas Liquids (NGLs) can be a vapor or a gas underground and at the surface Petroleum may contain impurities such as water, sulfur, oxygen, helium, nitrogen, carbon dioxide and trace metals. 34

35 Fuel Heating & Cooling Cooking Electricity Transportation Drinking Water Processing and Transport 35

36 Products Fertilizers Fabrics Rubber & Plastics Detergents and Cosmetics Medicine Thousands of Products 36

37 Business International (Integrated) Oil Companies - IOC National Oil Companies - NOC Independent Oil Companies 37

38 Geopolitcs Energy Security Reliable Supply Control and Sovereignty over Resources Trade Deficits Shale Gas & Oil Revolution 38

39 Internal Policy Best Development Practices Sustainable Benefits for Citizens Substituting Other Resources (Coal or Alternatives) Subsidies Conservation Export/Import Controls 39

40 Health & Environment Oil Spills & Explosions Air Pollution Water Pollution Climate Change 40

41 Volume Weight Thermal Energy 41

42 Petroleum engineers and geologists, particularly those working in the Western Hemisphere, measure oil and gas volumes to answer questions like, "How much oil or gas do I have in my reservoir? How much can be produced during the life of the field? What is the daily production rate? In contrast, ship owners would want oil shipments to be measured in weight to avoid overloading their tankers. Marketers and customers are interested in thermal energy units rather than volume or weight. 42

43 BTU stands for British Thermal Unit, a measure of energy. One BTU is not much: it's equal to 0.25 food calories or about the amount of energy in the tip of a match. To put this in perspective, the food energy in a peanut butter and jelly sandwich is about 1250 BTU, one kwh of electricity is equivalent to 3,412 BTU, a gallon of gasoline contains about 125,000 BTU, and one short ton of coal (2000 lbs) contains about 20 million BTU.

44 Unit of Gas Volume Standard Conditions Measurement Standard Cubic Foot psi (one (SCF) atmosphere), 60 F Normal Cubic Meter One atmosphere, 0 C (Nm 3 ) Conversions: 1 m 3 = ft 3 ; 1 ft 3 = m 3 Area of Common Usage US, Latin America, Africa, Middle East. Europe, Canada, Russia. 44

45 Units Quantity Symbol ft 3 Symbol m 3 Application Thousand 1000 MCF Mm 3 Basic unit of sale Million 1,000,000 MMCF MMm 3 Daily well production Billion 1,000,000,000 BCF bm 3 Annual field production Trillion 1,000,000,000,000 TCF tm 3 Field reserves If gas volume is measured in m 3, simply replace CF with m 3 within the above symbols. Some companies use K, M, Giga ("G") and Tera ("T") in place of thousand, million, billion and trillion. 45

46 Take Home Ideas Oil Seeps were the first exploration clues Petroleum Industry is a High Tech and Rapidly Changing Petroleum Industry Requires Many Skills Petroleum Systems Involve Critical Components and Timing Petroleum Industry has Many Facets Petroleum Measurements are Numerous 46

47 Assignments Reading for This Week Why Peak-Oil Predictions Haven t Come True Russell Gold Wall Street Journal, September 29, 2014 We will discuss on Friday. Reading for Wednesday Read Today in Energy for Tuesday (1/13) at Be Prepared to Discuss in Class Material in Lectures and Reading will be on the quiz (Week after next week, 30 January) 47