Zaxo university

School of Engineering
Principle of petroleum engineering

A BASIC OVERVIEW OF THE

PETROLEUM INDUSTRY
LECTURE 1
Nazir Mafakheri
Lecture 1
 Principle of Petroleum Engineering
Syllabus/ semester 1
• * A basic overview of the petroleum industry. • * Overview of petroleum exploration.
• · Global energy (including petroleum) demand and supply. • · Petroleum Exploration Methods
• · Use of petroleum
• · Direct Indications
• · History of petroleum industry
• · Geological Exploration Methods
• * Petroleum geology
• · Geophysical Exploration Methods
• · Petroleum origins
• * An introduction to drilling
• · Migration and Accumulation of Petroleum

• · Source rock, reservoir rock • · Fundamentals of drilling and equipment

• · Petroleum traps • · Rotary Drilling Techniques

• * Basic reservoir rocks and fluids properties • · Rotary Rig Basics
• · Porosity • · Mud Systems
• · Permeability
• · Directional Drilling
• · Darcy’s Law

• · Reservoir fluid properties and methods of determination

 Evaluation

Assessment Tasks Weighting for components (%)

Attendance and class activity 5

Home work and exercise 5

Midterm exam 30

Final exam 60
A basic overview of the petroleum industry.

• History of the oil and gas

• Global energy (including petroleum) demand and supply.

• Use of petroleum

• petroleum industry
 History of the oil
• Petroleum was accessible for ancient people because of
natural oil seeps happening on the earth’s surface.
• Early Chinese and Persians burned oil to light their homes.
• Asphalt seems to be famous in the old empires as it was
used in Mesopotamia before 3000 BC for construction of
roads and buildings and for waterproofing boats.
• Egyptians and the Chinese used petroleum as a medicine.
• Before the 1850’s, Americans used whale oil to light their
homes. When whales became scarce, people skimmed the
crude oil that seeped to the surface of ponds and streams.
The density of oil is less than the density of water, allowing it
to float on top.
 History of the oil
• The demand for oil grew, and in 1859 Edwin Drake drilled the first oil
well near Titusville, PA. Why did Drake choose this spot to drill oil?
Well, the number one reason was the many active oil seeps in the
region.
History of the oil
Oil components
 History of the gas
• Like petroleum, the ancient people of Greece, Persia, and India
discovered natural gas many centuries ago. The Chinese piped the
gas from shallow wells and burned it under large pans of seawater to
evaporate the water and separate the salt from the seawater.

• In 1816, natural gas captured from a coal coking plant was first used
in America to fuel street lamps in Baltimore, Maryland.
 History of the gas

First U.S. Natural Gas Well

 In 1821, William Hart dug the first natural gas well in

Fredonia, NY.
 Gas components
These four chains—CH4(methane), C2H6(ethane), C3H8(propane), and
C4H10(butane)– are all gases, they boil at -161, -88, -46, and -1
degrees F, respectively(-107, -67, -43 and -18 degrees C). The chains
up through C18H32 or so are all liquids at room temperature, and the
chains above C19 are all solids at room temp.
 Global energy
Historical Energy Use by Type of Fuel (%)
100%
90% Wood
80%
Coal
70%
60%
Oil &
50% Gas
40% Nuclear
30%
20% Hydro
10% Other
0% Data: Energy Information
. Administration
1850 1900 1950 2000 2010
% of Total Energy Consumed in U.S
 Global energy 6.2%

•Petroleum …………. 39.0 8.1%

•Natural Gas ………. 23.0

•Coal .…………………. 22.7 23.0%
39.5%

•Nuclear……………… 8.0 23.3%

•Renewable ………... 6.1

•Total…………………. 100 98.8
Estimated Petroleum Consumption
Other nonfuel
Petrochemicals uses Other
11% 4%
4%
Heating & electrical
generation
7%

Industrial fuel
8%
Personal
vehicle travel
34%
Water transport
3%

Air transport
8%

Other land transport

21%
Source: American Petroleum Institute
 U.S. Gasoline Consumption

160
150
140
(Billions of gallons)

130
120
110
100
90
80
70
60
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003
 Global energy
Petroleum Consumption by Natural Gas Consumption
Sector of the Economy, 2011 by Sector of the Economy,
Residential,
2.48%
2011
Electric, 0.85% Commercial,
1.79%

Transportation
2%
Electric
Industrial, 24%
20.39%
Residential
38%

Transportation,
74.48%
Industrial
26% Commercial
10%

Residential Commercial Industrial Transportation Electric Residential Commercial Industrial Transportation Electric
 Use of petroleum
• While most petroleum is used for transportation, petroleum goes into
much more than just the tanks of cars and airplanes.
• Petroleum is part of many of the products we use everyday. It is well
known that plastics are made from petroleum, but that is only the
beginning. Your toothbrush, toothpaste, shampoo, and even your
contact lenses contain petroleum, as do carpeting, CDs, the ink in your
pen and medical devices such as prosthetic heart valves.
 Use of petroleum
Petroleum Products
by Type, 2011

Gasoline 42.02%
Diesel / Heating Oil 26.99%
Other 14.36%
(asphalt, feedstock, paraffin)
Jet Fuel 8.80%
Refinery Fuel 4.11%
Liquefied Petroleum Gas 3.73%

Data: Energy Information Administration

 Everyday Products Made from Chemicals Derived from
Petroleum

perfume balloons antihistamines

crayons
deodorants
glue carpet
umbrellas
food preservatives golf balls
dentures
panty hose
dyes fertilizer
candles
aspirin insecticides
house paint
antiseptics ink
bandages
photographs roofing shingles

nylon rope shampoo toothpaste

 Oil and Gas Process

Chemical
Exploration Production Transport Refining Manufacturing Uses
 Petroleum Industry

• Industry segments
• “Upstream”
• “Downstream”
Petroleum Industry

• “Upstream”
• Exploration
• Production
 Upstream
• The upstream oil sector is also commonly known as the exploration and
production (E&P) sector
• The upstream sector includes the searching for potential underground or
underwater crude oil and natural gas fields, drilling of exploratory wells, and
subsequently drilling and operating the wells that recover and bring the crude
oil and/or raw natural gas to the surface.
• With the development of methods for extracting methane from coal seams,
there has been a significant shift toward including unconventional gas as a
part of the upstream sector, and corresponding developments in liquefied
natural gas (LNG) processing and transport.
• Most upstream work in the oil field or on an oil well is contracted out to
drilling contractors and oil field service companies
Petroleum Industry

• “Downstream”
• Refining
• Transportation
• Marketing
 Downstream
• The downstream sector commonly refers to the refining of petroleum
crude oil and the processing and purifying of raw natural gas, as well as
the marketing and distribution of products derived from crude oil and
natural gas. The downstream sector touches consumers through
products such as gasoline or petrol, kerosene, jet fuel, diesel oil,
heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and
liquified petroleum gas (LPG) as well as hundreds of petrochemicals.
• Midstream operations are often included in the downstream category
and considered to be a part of the downstream sector.
Refining
Refining
Average Yield from a Barrel of Crude Oil
Gallons

•Gasoline …………………………... 19.7

•Distillate Fuel Oil ……………… 9.7
1 Barrel = •Jet Fuel ……………………………. 4.3
42 Gallons •Residual Fuel Oil ……………… 1.9
•Asphalt & Road Oil …………... 1.4
•Petrochemical Feed stocks… 1.1
•Lubricants ………………………... 0.5
•Kerosene ………………………….. 0.2
•Other ………………………………... 6.1
• Total ……………………………. 44.6
 Transportation

• Pipeline • Rail
• Marine • Truck
1. Barge
2. Tanker
Transportation
 Transportation - 2003

•Pipelines ………… 305.7 6.3%

3.8%

• Water Carriers … 146.0

• Motor Carriers … 31.9 29.1%

• Railroads ………… 19.3 60.8%

• Total …………….. 502.9

Ton-Miles (In Billions)

Petroleum Industry