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Logistics in Petroleum Engineering

Introduction to
Petroleum Engineering

Gerhard Thonhauser

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Logistics in Petroleum Engineering

Role of Hydrocarbons

Hydrocarbons are currently the most important source


of energy in the world
Limited Resource
E&P Business is a true global industry
Technological challenges have to be met

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Logistics in Petroleum Engineering

World Map of Sedimentary Basins

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Logistics in Petroleum Engineering

Reserves

Reserve classification
z Proved reserves
z Proved developed/undeveloped reserves
z Probably reserves
z Possible reserves
Oil price dependent

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Logistics in Petroleum Engineering

Reservedefinition 1

Proved HC Reserves are the estimated quantities, as


at a specific date, which analysis of geological and
engineering data demonstrate, with reasonable
certainty, to be recoverable in the future from known
reservoirs under the existing economic and operational
conditions.
Proved Developed Reserves are those Proved
Reserves that can be expected to be recovered
through existing wells and facilities and by existing
operating methods.
Proved Undeveloped Reserves are those Proved
Reserves that are expected to be recovered from new
wells or facilities, or from existing wells for which a
relatively major expenditure is required for re-
completion.
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Logistics in Petroleum Engineering

Reservedefinition 2

Unproved Reserves
Probable Reserves are the estimated quantities
of crude oil, natural gas and NGL which might be
economically recoverable in the future with a
reasonable high degree of probability, which
suggests the likelihood of their existence, but not
sufficient to be classified as proved.
Possible Reserves are the estimated quantities of
crude oil, natural gas and NGL which might be
economically recoverable in the future with only a
moderate degree of probability, which suggests the
likelihood of their existence, but not sufficient to be
classified as probable.

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Logistics in Petroleum Engineering

Development of Reserves

Reserves are a funtion of oil price and available


technology
85 - 90 % of reserves in existing fields
10 15 % exploration and discovery of new fields
z Giant discoveries are the exeption
z Exploration in the deep water off-shore area

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Logistics in Petroleum Engineering

Reserve Distribution

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Logistics in Petroleum Engineering

Reserves are like Fish

PROVED DEVELOPED: The fish is in your boat. You


have weighed him. You can smell him and you will eat
him.
PROVED UNDEVELOPED: The fish is on your hook in
the water by the boat and you are ready to net him.
You can tell how big he looks (they always look bigger
in the water).

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Logistics in Petroleum Engineering

Reserves are like Fish

PROBABLE: There are fish in the lake. You may have


caught some yesterday. You may even be able to see
them, but you have not caught any today.
POSSIBLE: There is water in the lake. Someone has
told you there are fish in the lake. You have your boat
on the trailer but you may go play golf instead.

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Logistics in Petroleum Engineering

So that is Reserves

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Logistics in Petroleum Engineering

Reserve Estimates

Different Interpretations of a Hypothetical 6,000 Billion Barrel


World Original Oil-in-Place Resource Base

6.000

5.000

3,400
4.000 4,000

3.000

600
2.000
Recovery
Recovery 1,200 Factor
1,200
Factor 43%
1.000
33%
800 800
0
1 2

Cumulative Production Proved Reserves Unrecoverable


Source: Energy Inform ation Adm inis tration
Schoeller-Bleckm ann Oilfield Equipm ent AG

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Logistics in Petroleum Engineering

Local Reserve Distribution - Oil

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Logistics in Petroleum Engineering

Proven Oil Reserves End 2003

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Logistics in Petroleum Engineering

Distribution of Proven Oil Reserves

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Proven Reserves Natural Gas

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Distribution of Proven Reserves End 2003

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Crude Oil Prices sind 1861

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Logistics in Petroleum Engineering

Resource Triangle

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Structure of the Oil Industry

Upstream
z Exploration
z Drilling
z Production
Downstream
z Refineries
z Delivery to consumers (gas stations)

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Logistics in Petroleum Engineering

Life Cycle of A Field

Finding Drilling Producing Hydrocarbons

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Logistics in Petroleum Engineering

Where do Hydrocarbons come from?

Organic material in the


hydrocarbon cycle
0.1 % of those hydrocarbons
sediment
Without Oxygen and with
temperatures around 50 C
Kerogen is produced
Under pressure (~2000 m)
and higher temperatures
hydrocarbons are formed
z 70 C Oil
z 200 C Gas
z >300 C no hydrocarbons

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Migration

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Geophysics

Searching for structures using


z Gravimetric
z Magnetic
z Seismic
Formation and reservoir description using
z Geophysical well logs
z Cores

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Logistics in Petroleum Engineering

Finding Potential Reservoirs

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Drilling a Well

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Completed Well

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Field Development

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Logistics in Petroleum Engineering

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