Defined as the ability to do work, Energy is one of the major inputs for the

economic development of any country. The consumption of energy is increasing at

fast pace while available resources limited. Global need for energy is increasing on
an average by about 1.5% every year. Out of total amount of primary energy,
around 80% comes from fossil fuels. The current consumption of fossils fuels,
particularly oil, is not sustainable in long term. Energy consumption has a
significant impact on our natural environment. This is clear evidence that climate
change is caused by human activity, mostly related to the use of energy developing
renewable energy is its inevitable choice for sustainable economic growth.
Renewable energy has been categorized as traditional and new. The former
includes large hydropower, biomass burnt directly etc; the latter includes small
hydropower, solar energy, wind energy, biomass energy, and geothermal energy
etc.

Classification of Energy
 Primary Energy & Secondary Energy.
 Commercial & Non-Commercial Energy

1. Primary Energy & Secondary Energy

Primary Energy
Primary energy refers to all type of energy extracted or captured directly from
natural resources.
It is further sub divided into two groups
 Renewable (Solar, Wind, Geothermal, Tidal,
Biomass)
Obtained from natural sources, which are in exhaustible, e.g: Solar, wind power,
geothermal, tidal power & hydro electric power – No pollutant in this case.
 Non- Renewable (Fossil Fuels, Crude oil, Coal,
Natural Gas, Nuclear Etc.)
Natural resources such as coal, oil & natural gas are example of non –renewable
energy.
Secondary Energy
Secondary Energy sources are derived from primary sources in a form of either
final fuel or energy supply. Involvement of technological processes in this
transformation in between causes drop in primary energy on the way to consumers.
Secondary energy sources are also referred to as energy carriers, because they
move energy in a useable form from one place to another. The two most well-
known energy carriers are:
 Electricity
 Hydrogen

Example: Crude oil is refined and converted in products like petrol, diesel,
kerosene.

2. Commercial & Non-Commercial Energy

Commercial Energy sources

The energy sources that are available in the market for a definite price are known
as commercial energy. By far the most important form of commercial energy are
electricity, coal and refined petroleum products. Commercial energy forms the
basis of industrial, agriculture, transport, and commercial development in modern
world.
Examples: Electricity, Lignite, Coal, oil etc.

Non-commercial Energy sources

The energy sources that are not available in the market for a price are known as
non-commercial energy sources. Non-commercial energy sources include fuels
such as firewood, cattle dung and agriculture waste, which are traditionally
gathered, and not bought at a price used especially in households.
Example Firewood, agro waste from rural areas.
Worldwide Energy Resources and Current Scenario

Coal
Worldwide-826 billion tones of proven coal reserves. The coal reserves will lose in
122 years the current rate of production.
Coal reserve
1. USA-29%
2. Russia -19%
3. China – 14%
4. Australia -9%
5. India-7%
6. Rest part of world-22%

Oil
Oil worldwide (Conventional Crude oil reserve-1258 Billion barrels.)
60% of the oil reserves are in Middle East,
Venezuela – 25.5%
Saudi Arabia – 22.4%
UAE – 8.3%
Iran – 13.1%
Qatar – 8.5%

Natural Gas
Natural gas is a gaseous fossil fuel consisting primarily of methane. Global proven
gas reserve is estimated to be 185 trillion cubic meters. The reserves are estimated
for 60 years worldwide.
Russia – 23%
Saudi Arabia%--4%
Iran – 16%
UAE-4%
Qatar-14%
Rest of World-35%

Nuclear Energy:
Nuclear technology uses the energy released by splitting the atoms of certain
elements. Today, the world produces as much electricity from nuclear energy as it
did from all sources combined in the early years of nuclear power. Civil nuclear
power can now boast 17,000 reactor years of experience and supplies almost
11.5% of global electricity needs, from reactors in 31 countries. In fact, through
regional transmission grids, many more than those countries depend on nuclear-
generated power. Now 31 countries host some 447 commercial nuclear power
reactors with a total installed capacity of over 390,000 MWe. The power from
nuclear plants is dispatchable on demand, it can be fairly quickly ramped-up, it
contributes to clean air and low-CO2 objectives, it gives good voltage support for
grid stability. Reactors can be made to load-follow. These attributes are mostly not
monetized in merchant markets, but have great value which is increasingly
recognized where dependence on relatively unpredictable intermittent sources has
grown

Hydroelectricity:
 Flowing water creates energy that can be captured and turned into electricity. This
is called hydroelectric power or hydropower. The most common type of
hydroelectric power plant uses a dam on a river to store water in a reservoir. Water
released from the reservoir flows through a turbine, spinning it, which in turn
activates a generator to produce electricity. But hydroelectric power doesn't
necessarily require a large dam. Some hydroelectric power plants just use a small
canal to channel the river water through a turbine. Another type of hydroelectric
power plant - called a pumped storage plant - can even store power. The power is
sent from a power grid into the electric generators. The generators then spin the
turbines backward, which causes the turbines to pump water from a river or lower
reservoir to an upper reservoir, where the power is stored. Hydropower is the
leading renewable source for electricity generation globally, supplying 71% of all
renewable electricity. Reaching 1,064 GW of installed capacity in 2016, it
generated 16.4% of the world’s electricity from all sources. At the end of 2015, the
leading hydropower generating countries were China, the US, Brazil, Canada,
India and Russia.

References:

[1] PSMP 2010: Bpdb.gov.bd

[2] BP statistical review of world energy 2016

[3] Asia/world energy outlook 2016: The Institute of Energy Economics, Japan

[5] https://www.worldenergy.org

[6] http://www.world-nuclear.org

Energy Scenario of Bangladesh

In Bangladesh, about 63 percent of energy demand is met from natural gas. Among
other fuels- oil, coal, biomass etc. are vital. There is a huge reserve of coal in our
country, but coal is less produced as well as less used here. On the other hand,
natural gas reserve is not that substantial, but its production and consumption are
the highest among the available resources. Besides those, energy demand is being
met through imported oil and LPG. Moreover, the government has already started
importing LNG to meet increasing gas demand. Biomass is being used as a lion’s
share of energy. The energy demand is also being met by importing electricity
from India.

Known commercial energy resources in Bangladesh include indigenous natural

gas, coal, imported oil, LPG, imported LNG, imported electricity and hydro-
electricity. Biomass accounts for about 27% of the primary energy and the rest
73% is being met by commercial energy. Natural gas accounts for about 63% of
the commercial energy (with 7% imported LNG). Imported oil accounts for the
lion's share of the rest. In this year Bangladesh imports about 8.6 million metric ton
of crude and refined Petroleum Products. Apart from natural gas and crude oil, coal
is mainly used as fuel in the brick-fields and Thermal Power Plant.
Estimated final consumption of total energy is around 55 MTOE. Average increase
of energy consumption is about 6% per annum. Per capita consumption of energy
in Bangladesh is on an average 344 kgoe (Kilogram Oil Equivalent) and per capita
generation of electricity is 510 kWh with an access to electricity 95%, which is
lower than those of South Asian neighboring countries.

Energy Calculation for 2018-19(Mtoe)

Fig; Share of Total Primary Energy (2018-19)
Natural Gas
Since first discovery in 1955 as of today 27 gas fields, 25 in the onshore and 2 in
the offshore have been discovered in the country. Of them 20 gas fields are in
production, one offshore gas field have depilated after 14 years of production while
other offshore field has not been viable for production due to small reserve. The
estimated proven plus probable recoverable reserve was 28.69 Tcf. As of June
2019, a total of 16.93 Tcf gas has already been produced leaving only 11.76 TCF
recoverable reserve in proven plus probable category. Some key information about
the natural gas sector is presented in the Table

Natural Gas Sector at a Glance

Natural Gas Demand

Being almost single indigenous sources of commercial energy demand for natural gas experienced vary
fast growth over the last three decades often outstripping the supply. Present demand for gas in the
country is about 3392 MMscfd whereas supply is 3331 MMscfd (Gas + imported LNG) indicating a
shortage of about 61 MMscfd. It is estimated that demand for natural gas will rise to about 4622
MMscfd by the 2030. Natural gas demand projection in the country is shown in the figure below

LNG Scenario

To meet the growing energy demand of the country, the government initiated the import of LNG from
abroad. At present, a total of 1000 mmcfd LNG is added to the national grid
Petroleum Sector scenario

Petroleum products viz. diesel, petrol, octane furnace oil etc., account for about 22% commercial energy
supply in the country. Liquid fuel used in Bangladesh is mostly imported. Locally produced gas
condensate shares only 6% of total liquid fuel consumption. Bangladesh imports about 1.36 million
metric tons of crude oil along with 6.7 million metric tons (approx.) of refined petroleum products per
annum. About 4118 thousand BBL per year locally produced gas condensate, which is fractionated
mainly into petrol, diesel and kerosene, is the only domestic source of liquid fuel. Major consumer of
liquid fuel is transport followed by power, agriculture, industry and commercial sectors. Sector-wise
consumption of petroleum products are: transport-50.26%, power-24.36%, agriculture 16.37%, industry
5.32%, domestic-3.21% and others 0.48%.

Petroleum Sector at a Glance (2018-19)

LPG scenario of last 5 year
Coal

In Bangladesh, the reserve of coal (Bituminous Coal) is about 31,00 million tones which is equivalent to
85 Tcf gas in 5 coal fields so far discovered, namely Barapukuria, Khalaspir, Phulbari, Jamalganj and
Dighipara. If initiatives are taken for exploration all over the country, there are enough possibilities to
discover more coal mines. Out of the discovered mines, coal from 4 deposits (118-509 meters) is
extractable at present.

Nuclear Power

Nuclear powers is characterized by very large up-front investments, technical complexity, and significant
technical, market and regulatory risks, but have very low operating costs and can deliver large amount
of based load electricity while producing almost no CO2 emissions. Typical construction times are
between five and eight years from first concrete poured. Government of Bangladesh has signed a
general contract with Russia on December 25, 2015 for the construction and commissioning of the
country’s first nuclear power plant (2*1200 MW) at Rooppur in Pabna at the cost of $12.65 billion
Energy is the prime mover of one country's economy. The world's energy sector heavily depends on
fossil fuels in terms of primary as well as secondary energy sources. The world's power infrastructure
needs to be modified and reorganized. This situation indicates that current indigenous energy sources
cannot meet the increasing energy demands and the solution of this problem lies in the energy
conservation, energy efficiency and utilization of renewable energy sources.
What do a petroleum engineer do

Petroleum engineers are traditionally involved in activities known in the oil

industry as the “front end” of the petroleum fuel cycle (petroleum is either
liquid or gaseous hydrocarbons derived from natural deposits — reservoirs
— in the earth). These front end activities are namely exploration (locating
and proving out the new geological provinces with petroleum reservoirs that
may be exploited in the future), and development (the systematic drilling,
well completion, and production of economically producible reservoirs).
Once the raw petroleum fluids (e.g., crude oil and natural gas) have been
produced from the earth, the “back end” of the fuel cycle takes the
produced raw petroleum fluids and refines these fluids into useful products.

A petroleum engineer has various responsibilities which include designing

equipment, developing physical plans to drill and recover oil and gas, and
operating computer-controlled drilling or fracturing machinery.
They supervise, design, and monitor the evaluation of new and old wells.
They determine and estimate the economic value of gas and oil wells and
it’s production capabilities. A petroleum engineer analyzes data in order to
advise a company in the placement of wells and ways to enhance
production. They evaluate producing rates and if needed plan rework
processes to improve its performance. He or she would assist personnel or
engineering in the solution of operating problems and interact with technical
personnel, engineers or scientists to resolve issues in design, testing or
research.
A petroleum engineer would coordinate the operation of field and mining
equipment as well as the maintenance and installation. They require
knowledge in technology and engineering, mathematics, physics and
chemistry among other subjects. A petroleum engineer should be skilled in
systems analysis, reading comprehension, and complex problem-solving.
In this occupation, he or she would go to all relevant sources in order to
obtain information needed to successfully complete a job. They have to
organize and plan the work with specific goals in mind to accomplish it.
Creativity is a quality more often associated with artists than engineers, but
petroleum engineers need it, to develop new ways to extract oil and gas from
below the Earth’s surface and make old oil wells more productive. Oil and gas
deposits reside deep in rock formations, accessible only by drilling wells on land
or at sea.
Petroleum engineers work with other scientists to map geological formations and
determine drilling methods, design equipment, run the drilling plan, and monitor
operations. These engineers analyze data to anticipate flaws or complications in a
drilling plan before a project begins. They work hard to consider all potential
issues, and to quickly address problems that do occur.
Most petroleum engineers work in the oil industry… though some work in related
manufacturing, or manage companies in the oil industry. They generally work in
offices or research laboratories, as well as at drilling sites to monitor operations—
often for extended periods. Petroleum engineers work around the world and
must work effectively with people from a wide variety of backgrounds. Full-time
hours are typical, and overtime is common. Hours are longer at drill sites.
Employers prefer candidates with a bachelor’s degree in petroleum engineering,
although some accept a degree in mechanical or chemical engineering as well
Migration
Migration of hydrocarbons or petroleum is a little-understood but critical process
of the petroleum system short definition is movement of petroleum from source
rock toward a reservoir on seep. There are numerous factors controlling the
hydrocarbon migration process like kerogen expansion, increase in pressure and
hydrocarbon expulsion out of Source rock.

Evidences for migration :

There are 3 primary observational evidences which suggest that the hydrocarbons
migrated into reservoir rocks at considerable depth below the surface and at
some time often burial. 3 evidences are
 Oil and gas occur in soluble pares and fractures in a host rock (reservoir
rock) that formed these pores and fractures after its transformation into
solid rock
 Oil and gas are trapped at the highest point in a permeable rock unit which
necessitates lateral and upward through a reservoir rock. migration oil, gas
and water occur together in a stratified relationship in porous and per me
able reservoir rock, stratification.

migration types:

There are 3 types of petroleum migration

Primary migration → Primary migration is the process by which hydrocarbons are
expelled from the source rock into an adjacent permeable carrier bed!
secondary migration - Secondary migration is the movement of hydrocarbons
along a carrier bed from the source area to the trap. Migration mostly takes place
as one as more separate hydrocarbons phase. There is also Mainor dissolution in
water of methane and short chain hydrocarbons.
Tertiary migration – It is migration that occurs when petroleum moves from one
trap to another or to a seep.

The following table lists these factors:

Factors: Energy souces

1.Presence of oil or gas $ Buoyancy

$ Chemical potential
$ Expansion due to a phase change
$ Volume increases due to maturation
$ Sediment compaction

2 Indirect affects on oil and gas due to burial Thermal expansion/water motion
d due to
compaction/Topographically 0
driven flow

3Decrease is pressure and and temperature phase change/gas expansion

as a result of the upward migration of oil
and gas
What Is a Hydrocarbon?
A hydrocarbon is an organic chemical compound composed exclusively of
hydrogen and carbon atoms. Hydrocarbons are Hydrocarbons are chemical
compounds that are utilized as the basis of crude oil, natural gas, coal and the
vast majority of global energy production. Hydrocarbons are highly combustible
and produce carbon dioxide, water, and heat when they are burned. Therefore,
hydrocarbons are highly effective as a source of fuel.

Where are hydrocarbons found?

Almost all hydrocarbons occur naturally in crude oils, like petroleum and natural
gas. Since crude oil is made of decomposed organic matter, it is abundant in
hydrogen and carbon atoms. They are also present in different trees and plants,
and form a natural pigment called carotene, that can be found in carrots and
green leaves. The majority of natural crude rubber, 98%, is made of a
hydrocarbon polymer; this is formed when a chainlike, molecule forms, consisting
of many units linked together.

Hydrocarbon, any of a class of organic chemical compounds composed only of the

elements carbon (C) and hydrogen (H). The carbon atoms join together to form the
framework of the compound, and the hydrogen atoms attach to them in many
different configurations. Hydrocarbons are the principal constituents of petroleum
and natural gas. They serve as fuels and lubricants as well as raw materials for the
production of plastics, fibers, rubbers, solvents, explosives, and industrial
chemicals.
Nineteenth-century chemists classified hydrocarbons as either aliphatic or aromatic
on the basis of their sources and properties. Aliphatic (from Greek aleiphar, “fat”)
described hydrocarbons derived by chemical degradation of fats or oils. Aromatic
hydrocarbons constituted a group of related substances obtained by chemical
degradation of certain pleasant-smelling plant extracts. The terms aliphatic and
aromatic are retained in modern terminology, but the compounds they describe are
distinguished on the basis of structure rather than origin.
Aliphatic hydrocarbons are divided into three main groups according to the types
of bonds they contain: alkanes, alkenes, and alkynes. Alkanes have only single
bonds, alkenes contain a carbon-carbon double bond, and alkynes contain a
carbon-carbon triple bond. Aromatic hydrocarbons are those that are significantly
more stable than their Lewis structures would suggest; i.e., they possess “special
stability.” They are classified as either arenes, which contain a benzene ring as a
structural unit, or nonbenzenoid aromatic hydrocarbons, which possess special
stability but lack a benzene ring as a structural unit.
This classification of hydrocarbons serves as an aid in associating structural
features with properties but does not require that a particular substance be assigned
to a single class. Indeed, it is common for a molecule to incorporate structural units
characteristic of two or more hydrocarbon families. A molecule that contains both
a carbon-carbon triple bond and a benzene ring, for example, would exhibit some
properties that are characteristic of alkynes and others that are characteristic of
arenes.

Alkanes are described as saturated hydrocarbons, while alkenes, alkynes, and

aromatic hydrocarbons are said to be unsaturated.

Aliphatic hydrocarbons
Alkanes, hydrocarbons in which all the bonds are single, have molecular formulas
that satisfy the general expression CnH2n + 2 (where n is an integer). Carbon is sp3
hybridized (three electron pairs are involved in bonding, forming a tetrahedral
complex), and each C—C and C—H bond is a sigma (σ) bond (see chemical
bonding). In order of increasing number of carbon atoms, methane (CH4), ethane
(C2H6), and propane (C3H8) are the first three members of the series.

Methane, ethane, and propane are the only alkanes uniquely defined by their
molecular formula. For C4H10 two different alkanes satisfy the rules of chemical
bonding (namely, that carbon has four bonds and hydrogen has one in neutral
molecules). One compound, called n-butane, where the prefix n- represents
normal, has its four carbon atoms bonded in a continuous chain. The other, called
isobutane, has a branched chain.

Different compounds that have the same molecular formula are called isomers.
Isomers that differ in the order in which the atoms are connected are said to have
different constitutions and are referred to as constitutional isomers. (An older name
is structural isomers.) The compounds n-butane and isobutane are constitutional
isomers and are the only ones possible for the formula C4H10. Because isomers
are different compounds, they can have different physical and chemical properties.
For example, n-butane has a higher boiling point (−0.5 °C [31.1 °F]) than
isobutane (−11.7 °C [10.9 °F]).

Aromatic hydrocarbons
Benzene (C6H6), the simplest aromatic hydrocarbon, was first isolated in 1825 by
English chemist Michael Faraday from the oily residues left from illuminating gas.
Benzene, toluene, and related hydrocarbons, while not particularly pleasant-
smelling themselves, were classified as aromatic because they were obtained from
fragrant substances.
The term aromatic thus came to mean any compound structurally derived from
benzene. Use of the term expanded with time to include properties, especially that
of special stability, and eventually aromaticity came to be defined in terms of
stability alone. The modern definition states that a compound is aromatic if it is
significantly more stable than would be predicted on the basis of the most stable
Lewis structural formula written for it. (This special stability is related to the
number of electrons contained in a cyclic conjugated system; see below Arenes:
Structure and bonding.) All compounds that contain a benzene ring possess special
stability and are classified as benzenoid aromatic compounds. Certain other
compounds

Arenes
These compounds are hydrocarbons that contain a benzene ring as a structural unit.
In addition to benzene, other examples include toluene and naphthalene.

(Hydrogen atoms connected to the benzene ring are shown for completeness in the
above structural formulas. The more usual custom, which will be followed
hereafter, omits them)

Crude Oil
Crude oil is a naturally occurring unrefined liquid petroleum, a mixture of
hydrocarbons that is found accumulated underground in the earth’s crust.
Various types of crude oils with different properties are available in the market.
Its price depends upon density, sulfur, metals, and other contaminants. Light
crude oils that produce more petrol, kerosene, and diesel are high-priced oils.
The composition of crude oil varies with geographical location, age, and depth
of the well.
Hydrocarbon content in crude can be as high as 97% in lighter Paraffinic crude
and as low as 50 % in heavy and Bitumen crude. Heavy crude oils are difficult to
operate and pose challenges to the refinery operation. Knowing about crude oil
is not only necessary to optimize the refinery operation but also for designing
new plants.

Composition of Crude oil

Its chemical composition is based on elements and molecules present in crude
oil.
1)- Element Based Composition: Complete elemental analysis is the first step in
determining the quality and general behaviour of crude oil. Whatever the source
is, with fewer exceptions, the proportions of the elements remain nearly the
same. More the composition of C atoms heavier will be the crude. The typical
range of these elements are Carbon 80-87% , Hydrogen 10-15%, Sulfur
0.56%Oxygen 0.1-6%, Nitrogen 0.1-2%, Sand, Water, Salt <0.1%, Metal <1000
ppm
2)- Molecular Based Composition: Molecules of various types with different
ranges are present in the crude and their concentrations define the quality of crude
oil. Their typical ranges are Alkane or Paraffin 15-60; Naphthenic 30-60; Aromatic
3-30; Asphaltic 3-10.
I)- Paraffin or Alkanes: These are the most common hydrocarbons in crude oil
and are saturated having the general formula CnH2n+2. They can be straightchain
(n-Paraffins), branched-chain (iso-paraffins), or cyclic alkanes. All the Carbon
items have a single bond. Examples are; Methane (CH4), Ethane (C2H6), Propane
(C3H8), etc. The first four compounds are in the gas form at atmospheric pressure
while C5H10 (Pentane) is in the liquid state followed by Hexane (C6H14), Heptane
(C7H16), Octane (C8H18)

Naphthenes or Cycloalkanes: These are also called Cycloalknes and are saturated
Hydrocarbons but have at least one ring of carbon atoms having the general
formula CnH2n. The boiling point and densities of Naphthenes are higher than
those of alkanes having the same number of carbon atoms. These are commonly
present in crude oil as rings with five or six carbon atoms. These rings usually have
alkyl substituents attached to them. Multi-ring naphthenes are present in the
heavier parts of the crude oil.
Aromatics: These are unsaturated HC with at least one Benzene ring. The simplest
aromatic compounds are Benzene and each aromatic has one or more Benzene
ring. A greater number of Benzene rings make the crude oil heaver and called
Polynuclear aromatic compounds. Higher concentration of Aromaicts, particularly
heavy aromatics causes coking and catalyst deactivation in processing.
Nitrogen: Crude oils contain minor amounts of nitrogen compounds. Nitrogen
compounds are more stable than sulfur compounds and are difficult to remove.
They can be responsible for the poisoning of a hydrocracking catalyst, and they
also contribute to gum formation in finished products. The nitrogen compounds in
crude oils may be classified as basic or non-basic. Basic nitrogen compounds
consist of pyridines. The greater part of the nitrogen in crude oils is the non-basic
nitrogen compounds which are generally of pyrrole types

Metals: Present in minor concentrations but cause significant problems in

processing. Major metals include Nickel, Vanadium, Iron, Arsenic, lead, etc. These
metallic compounds cause poisoning of the hydroprocessing and hydrocracking
catalysts. Part of the metallic constituents of crude oil exists as inorganic water-
soluble salt, mainly as chlorides and sulphates of sodium, potassium, magnesium,
and calcium. These are removed in desalting operations.
Natural Gas
Natural gas is a combustible hydrocarbon gas that occurs naturally on Earth. In its
pure state, it’s odorless and has no shape or color.

Chemical composition of Natural Gas

The truth is, the exact composition of natural gas is different depending on the
location. Each well has a different gas composition and different amounts of each
component. Natural gas is a naturally occurring mixture or premixed combustion.
Natural gas is a combustible mixture of hydrocarbon gases. A hydrocarbon is an
organic compound of hydrogen and carbon called petroleum. While natural gas is
formed primarily of methane, it also includes ethane, propane, butane, and pentane.
The primary component of natural gas is methane (CH4), the shortest and lightest
hydrocarbon molecule. Natural gas as a fossil fuel also contains heavier gaseous
hydrocarbons such as ethane (C2H6), propane (C3H8) and butane (C4H10), as
well as sulfur-containing gases in varying amounts. Fossil natural gas also contains
in varying amounts and is the primary market source of helium, a non-renewable
and valuable resource. Due primarily to factors of cost and expediency, only a
small portion of the helium in natural gas is actually recovered from the gas. Most
of the natural gas extracted from the earth is never treated to have the helium
separated, so that helium eventually escapes to the atmosphere unused.
Nitrogen, helium, carbon dioxide and trace amounts of hydrogen sulfide, water and
odorants can also be present. Mercury is also present in small amounts in natural
gas extracted from some fields. The exact composition of natural gas varies
between gas fields.
When there is almost pure methane, natural gas is considered “dry” gas. When the
heavier hydrocarbons are present, the gas is considered “wet.” The gas that we get
as consumers is made up of almost entirely pure methane. Yes, natural gas is
already composed of mostly methane but the gas still must go through processing
to remove the hydrocarbons before it reached the consumer. This means that the
ethane, propane, butane, and pentanes must be removed. However just because
these elements are removed, this does not mean that they are worthless and
wasteful.
Organosulfur compounds and hydrogen sulfide are common contaminants that
must be removed prior to most uses. Gas with a significant amount of sulfur
impurities, such as hydrogen sulfide, is termed sour gas and often referred to as
"acid gas.” Processed Natural gas that is available to end-users is tasteless and
odorless, however, before gas is distributed to end-users, it is odorized by adding
small amounts of thiols, to assist in leak detection. Processed Natural gas is, in
itself, harmless to the human body—however, natural gas is a simple asphyxiant
and can kill if it displaces air to the point where the oxygen content will not
support life.
Natural gas can also be hazardous to life and property through an explosion.
Natural gas is lighter than air, and so tends to dissipate into the atmosphere. But
when natural gas is confined, such as within a house, gas concentrations can reach
explosive mixtures and, if ignited, result in blasts that could destroy buildings.
Methane has a lower explosive limit of 5 percent in air, and an upper explosive
limit of 15 percent.
Explosive concerns with compressed natural gas used in vehicles are almost
nonexistent, due to the escaping nature of the gas, and the need to maintain
concentrations between 5 percent and 15 percent to trigger explosions.

Coal
Coal is a sedimentary deposit composed predominantly of carbon that is readily
combustible. Coal is black or brownish-black, and has a composition that
(including inherent moisture) consists of more than 50 percent by weight and more
than 70 percent by volume of carbonaceous material. It is formed from plant
remains that have been compacted, hardened, chemically altered, and
metamorphosed by heat and pressure over geologic time.

Coal Component
Organic matter in coal is a complex macromolecule organic compound, which is
mainly composed of carbon, hydrogen, oxygen, nitrogen, sulfur and phosphorus,
and the sum of carbon, hydrogen and oxygen accounts for more than 95% of
organic matter. Inorganic matter in coal also contains a small amount of carbon,
hydrogen, oxygen, sulfur and other elements.
Carbon is the most important component in coal, and its content increases with the
deepening of coalification. The carbon content in peat is 50%-60%, lignite 60%-
70%, bituminous coal 74%-92%, anthracite 90%-98%.
Sulfur is the most harmful chemical component in coal. During coal combustion,
sulfur generates SO2, which pollutes the environment. So the United States has
established regulations to control sulphide emissions because it is expensive to
remove harmful impurities containing sulfur, so governments reward the
production of low-sulfur coal to reduce pollution.

Types of Coal

Types, or “ranks,” of coal are determined by carbon content. There are four types
of coal, ordered from highest to lowest rank below.

Anthracite (hard coal): Anthracite is a kind of hard, dense and high-gloss coal.
Among all kinds of coal, although anthracite has lower calorific value, it has the
highest carbon content 80 to 95 per cent carbon and the least impurity content.
Anthracite is the highestgrade coal. Best quality; hard coal. Very little volatile
matter. Negligibly small proportion of moisture. Semi-metallic lustre. Ignites
slowly and burns with a nice short blue flame.

Bituminous (soft coal): Bituminous coal is the product of further metamorphism

of coal, with a moderate degree of coalification, with a carbon content of 77% –
87%. It emits thick smoke during combustion, so it is called bituminous coal. It is
an important boiler fuel and coking raw material, and can also be used for dry
distillation of petroleum and production of gas. Most widely available and used
coal. Derives its name after a liquid called bitumen. Moisture and volatile content
(15 to 40 per cent). Dense, compact, and is usually of black colour. Does not have
traces of original vegetable material. Calorific value is very high due to high
proportion of carbon and low moisture. Used in production of coke and gas.
Subbituminous (black lignite): Subbituminous coal is a transitional coal between
bituminous coal and lignite, with a carbon content of 71% – 77%. The United
States, Canada and China are all rich in sub-bituminous coal resources.
Lignite (brown coal): Lignite is a coal with a low degree of coalification, with a
carbon content 60% – 70%. Lignite has high moisture content (15%), high volatile
content (> 40%) and low ignition point. It is not easy to store and transport, and
causes serious air pollution during combustion. Dark to black brown.

Peat: Peat is the coal with the lowest degree of coalification, with a carbon content
of less than 60%. Peat is formed by the remains of swamp plants, which cannot be
completely decomposed and accumulated under the condition of too much water
and anorexia. First stage of transformation. Contains sufficient volatile matter and
lot of moisture [more smoke and more pollution]. Left to itself, it burns like wood,
gives less heat, emits more smoke and leaves a lot of ash.

A reservoir is an artificial structure designed to hold back fluids like water, gas or
hydrocarbons.

Reservoir characteristics that may be estimated from DST (drill stem test) analysis
include:

Average effective permeability: This may be better than core permeability since
much greater volume is averaged. Also, effective permeability rather than absolute
permeability is obtained.

Reservoir pressure: Measured, if shut-in time is sufficient, or calculated, if not.

Wellbore damage: Damage ratio method permits the estimation of what the well
should make without damage.

Barriers, permeability changes, and fluid contacts: These reservoir anomalies

affect the slope of the pressure buildup plot. They usually require substantiating
data to differentiate one from the other.

Radius of investigation: An estimate of how far away from the wellbore the DST
can ‘see’.

Depletion: Can be detected if the reservoir is small and the test is properly run.

Petroleum Industry

The petroleum industry, also known as the oil industry or the oil patch, includes
the global processes of exploration, extraction, refining, transporting (often by oil
tankers and pipelines), and marketing of petroleum products. Oil and natural gas
are major industries in the energy market and play an influential role in the global
economy as the world's primary fuel sources.  The processes and systems
involved in producing and distributing oil and gas are highly complex, capital-
intensive, and require state-of-the-art technology.
 The Oil and Natural Gas Value Chain

1) Exploration
 Seismic Exploration
 Seismic exploration locates hydrocarbons on land or under the sea
 Seismic waves reflect off rock formations and travel back to
hydrophone receivers.
 Geologists then estimate the structure and types of formations
under land by measuring travel times of the returned energy.
 This tells them where to drill.

2) Preparing the Drill

 Preparing to drill requires:
 Clearing the land and building access roads.
 Have a source of water nearby, or drill a water well.
 Digging a reserve pit for rock and mud that comes up in the
drilling process.

3) Drilling:
 Drill to receive the resources
 Drill the surface hole, and after reaching the pre-set depth,
cement the casing so it does not collapse.
 Drilling continues in stages: They drill, then run and cement
new casings, then drill again.
 Run tests to make sure they are at the right depth.

4) Extracting the Oil:

  Remove the drill, and place a pump on the well head. The pump
system forces the pump up and down, creating a suction that
draws oil up through the well.
 If the oil is too heavy a second hole is drilled where steam pressure
is injected.
 Heat from the steam thins the oil, and the pressure pushes it up
the well.
5) Production
 Gas and oil are gathered and transported, through pipelines or ships,
to processing facilities.
 Gasoline and natural gas are used as fuel in the transportation
sector. 
 Oil can be stored in specially built tanks before being processed into
products or exported.
 Oil and gas can be used as fuel in the generation of electrical power.
 Oil and gas are exported either as refined products or crude oil in
specialized tankers.
6) Transport:
 The oil and gas are then transported, either by ship or pipeline, to
processing facilities.
 Facilities remove impurities and convert oil and gas to refined
products and petrochemicals we use daily.
7) Market- at the gas pump

PETROLEUM INDUSTRY STRUCTURE

The Petroleum Industry can be divided by five ways, as following:

I)Broad Oil Segments

1) Crude oil exploration and production segments;

2) Refining segments, and
3) Product distribution and sales segments.

II) The American Petroleum Institute divides the petroleum industry into five sectors:

1) Upstream sectors (exploration, development and production of crude oil or natural

gas);
2) Midstream sectors;
3) Downstream sectors (oil tankers, refiners, retailers and consumers);
4) Pipeline sectors; and
5) Service and supply sectors
III) The oil industry can be subdivided into four major company types:

1) National Oil Companies (NOCs) and

2) International Oil Companies (IOCs).
3) Operator Companies (or Exploration and Production (E &P) Companies); and
4) Service Companies

IV) main categories of participants in the international oil market

1) National Oil Companies (NOCs);

2) International Oil Majors Companies (IOCs) and Their Trading Arms;
3) Independent Oil Trading Companies;
4) Financial houses and non-industry speculators
V) Oil companies used to be classified by sales as:
1) Supermajors Companies (BP, Chevron, ExxonMobil, ConocoPhillips, Shell, Eni and
Total S.A.),
2) Majors Companies, and
3) Independents (or Jobbers) Companies

THE AMERICAN PETROLEUM INSTITUTE CLASSIFICATION OF THE PETROLEUM

INDUSTRY

The American Petroleum Institute divides the petroleum industry into five
sectors:
1) Upstream sector (exploration, development and production of crude oil or
natural gas);
2) Midstream sector
3) Downstream (oil tankers, refiners, retailers and consumers);
4) Pipeline sector; and
5) Service and supply sector

Upstream Sector:
Upstream is a term for the operations stages in the oil and gas industry that
involve exploration and production. Oil and gas companies can generally be
divided into three segments: upstream, midstream, and downstream. Upstream
firms deal primarily with the exploration and initial production stages of the oil
and gas industry.
The upstream sector of the oil and gas industry includes all the steps involved
from the preliminary exploration through the extraction of the resource.
Upstream companies can be involved in all the steps of this phase of the life cycle
of the oil and gas industry, or they may only be involved in part of the upstream
sector. This is done using sophisticated drilling equipment which is used to tap
into the sources and draw oil and natural gas to the surface. The upstream
petroleum industry is associated with the most lucrative merger, acquisition and
divestiture deals. The industry is hugely profitable and attracts investors and
funders from across the globe.

IN SHORT UPSTREAM OIL AND GAS SECTOR

 The upstream oil sector is also known as the exploration and production (E&P)
sector.
 E&P sector: collecting data and drilling wells
 Refers to the searching for and the recovery and production of crude oil and
natural gas.
 Upstream covers everything to getting raw material to a refinery.
 The upstream sector includes the searching for potential underground or
underwater oil and gas fields, drilling of exploratory wells, and subsequently
operating the wells that recover and bring the crude oil and/or raw natural gas to
the surface.
 The upstream can be further subdivided into 3 main parts:
 EXPLORATION,
 DEVELOPMENT and
 PRODUCTION
Business Cycle of Upstream

Licensing
 Negotiation with Governments 
 Different types of contracts: royalties, PSA, service contract, …etc
Prospect
 Geological characteristics
 Seismic evaluation
 Geological Model

Exploration Drilling
 Infrastructure set-up
 Uncertainty
 Analysis of formations and hydrocarbon characteristics

Production Drilling
 Full scale project
 Field optimization
 Definition of drilling program and well profiles Upstream 
 Components of the Upstream Sector
The upstream can be further subdivided into 3 main parts
a) EXPLORATION: One part is focused on finding oil & gas ‘pools’.
 which regions and basins?
 which blocks?
 where on the block?

b) DEVELOPMENT: The second part is focused on how to get oil & gas out of
what has been discovered.
 How to Get It Out
 where, in detail, are the reserves?
 what to build (facilities)?
 will it be profitable?

c) PRODUCTION: The mission of the third part is to get the most out of the
ground and to the refinery
From the Ground, to the Refinery
 how to manage the field?
 how to deliver the ‘crude’? 

  Upstream Oil Company Targets

 Oil companies, and each of their departments, establish certain

targets 
 For example, these might be some targets within an exploration
group/company:
 To replace production with new reserves on a yearly basis –
like a bank account where to be financially healthy you want
deposits > withdrawals .
  To keep the finding costs below a target, such as $1/barrel –
sum of all exploration costs divided by total number of
discovered barrels on a yearly basis 
 Development and Production departments would have similar
targets.

To maintain a healthy petroleum company, one would want to:

 Replace production (what you take out of the ground) with new reserves:

Exploration Finds  Volumes Produced

 Keep finding costs below $1 per barrel

 Exploration Costs / New Barrels < $1/barrel

Petroleum Exploration

The role of exploration is to provide the information required to exploit the best
opportunities presented in the choice of areas, and to manage research
operations on the acquired blocks.
Petroleum exploration, as any other geologic investigation, uses all available
parameters, and it is the duty of the explorationist to recognize the pertinent
parameters as they are encountered. Without this important ability to recognize
relevant parameters, the explorationist cannot function properly. Petroleum
exploration is not the type of endeavor where all definitive factors are obvious at
all times. The explorationist must use his or her personal experience as well as
that of other team members to solve any problems encountered in the search for
oil and gas. No information is discarded; the explorationist uses it all.

An oil company may work for several years on a prospective area before an
exploration well is spudded and during this period the geological history of the
area is studied and the likelihood of hydrocarbons being present quantified.

Exploration is responsible for handling the risk intrinsic in this activity, and this is
generally achieved by selection of a range of options in probabilistic and
economic terms.
Indeed, exploration is a risk activity and the management of exploration assets
and associated operations is a major task for oil companies.
The risk cannot be eliminated entirely but can be controlled and reduced
adopting appropriate workflow, conceptual and technological innovations.
When it’s been decided to start up with an exploration project in a basin or in a
larger area containing several basins, the quantity and quality of available data
must be acquired and evaluated – geological data, type of reserves, production of
existing fields (if any), etc.
Basin assessment/evaluation is the first step to undertake the study of the area
under interest.
Technological development has provided oil companies with Basin Modeling –
which is a numerical simulation that allows the temporal reconstruction of the
history of a sedimentary basin and the associated evolution of the processes
related to the formation of petroleum accumulations.

Basin modeling – Petroleum system  

On the basis of data and evidences collected from the preliminary studies, the
company management, in the light of the possibilities and the probabilities of a
discovery based on G&G data, aside from considerations of an economic nature,
may decide to move to the following stage, which is the acquisition (through
direct negotiations or by taking part in bids, etc.) of the legal right to perform
prospecting in the selected area/block.
The owner of the mining right is normally the State, with which the oil company
stipulates a contract establishing the contracting parties’ rights.
Production Sharing Contracts and service contracts are frequently adopted
nowadays.
The sequence of activities covered by an exploration permit is fairly uniform, and
include
 the creation of a database
 the analysis of available data
 the programming of mapping and geological and photo-geological surveys
 seismic surveys and interpretation of seismic data
 the choice of well locations, drilling
 the analysis of results and the decision as to whether or not to proceed
with the application for a lease or to release the area after fulfilling
obligations
Goal of exploration is to identify and locate a prospect, to quantify the volume of
hydrocarbon which might be contained in the potential reservoirs and to evaluate
the risk inherent the project itself.
A prospect is a viable target evidenced by geological and geophysical indications
that is recommended for drilling an exploration well.
The prospects identified must be technically practicable and meet the market
conditions to guarantee a financial return on investments.
The results obtained by drilling the exploratory wells indicate whether the initial
geological hypotheses are correct or whether variations are found.
All this will allow the fine-tuning of the economic analysis of the project possibly
turning hypothetical reserves into proved ones.
Where profitability does not meet the standards of the company, it leads to the
termination of further investments.

Geological mapping and prospecting

Geological mapping and prospecting are valuable techniques in an petroleum
exploration.
Geological mapping It is basically a technique which allows a graphical
presentation of geological observations and interpretations.
Geological prospecting make use of geological disciplines such as petrography,
stratigraphy, sedimentology, structural geology, geochemistry.
Such disciplines are used to achieve different targets but it must be stressed that
their integration is fundamental to depict a picture of reality.
Geophysical methods
Geophysical methods allow to study the physical properties of the subsurface
rocks and they can be used in different phases of the exploration in order to
collect different types of information.
Geophysical methods such as gravimetric, magnetometric, magnetotelluric,
seismic are often combined to obtain more accurate and reliable results.
 Gravimetric prospecting
o Gravimetric prospecting is a geophysical technique which is able to
identify anomalies in the gravity acceleration generated by contrasts
in density among bodies in the subsurface.
o Gravimetric prospecting  is used to reconstruct of the main structural
elements of sedimentary basins such as:
 extension, thickness, salt domes, intrusive plutons and
dislocations or fault lines.
 Magnetometric prospecting
o This method involves measuring local anomalies in the Earth’s
magnetic fields.
o The method enable acquisition of data on structural characteristics
and depth of the susceptive basement and therefore, indirectly, on
the thickness of sedimentary overburden and identifies the presence,
depth and extension of volcanic or plutonic masses within the
sedimentary sequences.
 Seismic prospecting
o Seismic prospecting has become the most valuable technique to
reduce exploration risk of being unsuccessful in locating a prospect.
o The technique is based on determinations of the time interval that
elapses between the initiation of a seismic wave at a selected shop
point and the arrival of reflected or refracted impulses at one or
more seismic detectors.
o The phase of seismic data acquisition is followed by the seismic data
processing phase (aimed to the alteration of seismic data to suppress
noise, enhance signal and migrate seismic events to the appropriate
location in space) than by the interpretation of the generated
subsurface image.
Left: Onshore seismic survey
Right: Marine seismic survey

Geophysicists interpret the processed seismic data and integrate other

geoscientific information to make assessments of where oil and gas reservoirs
may be accumulated.

Powered by advanced supercomputer power, rapid data loading, high-speed

networking and high-resolution graphics, visualization centers provide the ability
to display and manipulate complex volumes of 3D data resulting in better
interpretation of more data in less time.
 Drilling

The term drilling indicates the whole complex of operations necessary to

construct wells of circular section applying excavation techniques.
To drill a well it is necessary to carry out simultaneously the following actions
(drilling process):
 to overcome the resistance of the rock, crushing it into small particles
measuring just a few mm;
 to remove the rock particles, while still acting on fresh material;
 to maintain the stability of the walls of the hole;
 to prevent the fluids contained in the drilled formations from entering the
well.
This can be achieved by using rotary drilling rigs which are  the ones operating
today in the field of hydrocarbons exploration and production.
The drilling rigs are complexes of mobile equipment which can be moved
(onshore and offshore) from one drill site to another, drilling a series of wells.
In rotary drilling the rock is bored using a cutting tool called the bit, which is
rotated and simultaneously forced against the rock at the bottom of the hole by a
drill string consisting of hollow steel pipes of circular section screwed together.

Fig: Land Drilling Rig

 Fig: The Drilling Process

The cuttings produced by the bit are transported up to the surface by a drilling
fluid, usually a liquid (mud or water), or else a gas or foam, circulated in the pipes
down to the bit and thence to the surface.
The rotation is transmitted to the bit from the surface by a device called the
rotary table or, in the modern rigs, by a top drive motor with the rotary table as
backup; additional rotation can be added by downhole motors located directly
above the bit.
After having drilled a certain length of hole, in order to guarantee its stability it
has to be cased with steel pipes, called casings, joined together by threaded
sleeves.
The space between the casing and the hole is then filled with cement slurry to
ensure a hydraulic and mechanical seal.
The final depth of the well is accomplished by drilling holes of decreasing
diameter, successively protected by casings, likewise of decreasing diameter,
producing a structure made up of concentric tubular elements.
Planning the drilling of a well
The planning of a well is a fundamental part of the drilling process – it is the basis
for making all the important technical choices, for assessing the costs and
organizing the actual construction of the well in the most efficient way.
The well planning starts the moment when the interpretation of the seismic data
and the reconstruction of the geology of the area reveal the presence of a
structure favourable to the accumulation of hydrocarbons.
These data also enable an estimate to be made of:
 depth of the productive levels; stratigraphic and lithological sequences;
problems that could emerge in an operational phase.
Geologists prepare a document containing estimates and proposals for drilling the
well on the basis of the information in their possession obtained from:
 geological surface campaigns; regional geological studies; studies
conducted on seismic maps; profiles of wells already completed in the area.

Overview of the well planning process (from PETEX, University of Texas)

This document is the introduction to the drawing up of the proper drilling
program to give the data necessary for:
well location, drilling objectives, foreseen of the final depth, forecasts of the litho-
stratigraphic profile, possible drilling problems that could be encountered, etc.
The analysis and processing of all this large mass of information provides the
drilling engineers with the essential elements for drawing up the drilling program.
These data are available from existing documents such as:
 Geological profiles; Well Logs; Pressure reports; Drilling reports; Drilling
fluid reports; Cementing reports; etc
Every well has its own specific features (depth, exploratory, development or
appraisal well, onshore or offshore, vertical, directional or horizontal..)  but  the
basic criteria are the same for all well types.
The first step to be taken by engineers to work out the drilling programme is to
construct, the trend of the pressure gradient curves according to depth (geostatic,
pore pressure and fracture gradients) to design the well casing profile.
Choice of rig, wellhead and BOP
The casing levels, the diameters and weight of the strings, the pressures and
temperatures concerned, and the volumes of drilling mud to be used, are all
aspects participating in determining the choice of rig type, blowout prevention
systems (BOP, choke manifold, hydraulic circuit) and wellheads.
The choice of rig is closely bound up with the depth it is wished to reach and with
the weight of the strings concerned.
According to the weights of the strings to be handled, rigs are used that have
different characteristics, and what is of basic importance is the strength of the
whole assembly, (travelling block, crown block, hook and  derrick floor) from
which the string hangs while being lowered into the well.
In offshore activity, the choice of the rig is determined, not only by the weight of
the strings, but also by the depth of the water in the area of operations.
Drilling rigs installed on offshore vessels or platforms are built to reach the
maximum possible depths and have all the material and equipment necessary for
drilling on board.
The composition of the wellhead depends on the pressures that can be reached
during the various working phases – both drilling and production – and on the
diameters of the strings to be lowered into the well.
Control of drilling operations
The great complexity of the drilling process, its high costs, the need to ensure the
full efficiency of the rig and the respecting of safety and of the environment call
for a continuous optimizing of operations, which are achieved through the
monitoring and processing of all available data, both geological and drilling.
To reach these objectives, every drilling rig, and in particular those that have to
drill complex, deep and therefore costly wells, is endowed with more or less
sophisticated mud logging units, which permit – through appropriate sensors and
the activity of specialized personnel – the acquisition, processing and
interpretation of a vast range of information of interest both to the geologist and
to the drilling engineer.
Mud logging units are equipped with sensors, positioned in appropriate parts of
the rig, permitting the automatic, continuous acquisition of the most significant
parameters, and advanced information systems, based also on expert systems, as
the means of managing operations in real time, with the consequent reduction of
time and costs.
These sensors transmit their signals to a computerized system housed in the mud
logging cabin, which provides for their representation also in graphic form, their
storage in special local data banks, and the sending by means of radio links,
dedicated telephone lines and communications via satellite, of selected data to
operational centres.
Drilling costs
The drilling programme indicates also the budget that it is necessary to allocate to
reach the targets, and which has to be adhered to during the construction of the
well.
The costs of drilling a well can vary, depending on the particular type of well-
planned and the environment.
The budget contained in the drilling programme indicates the amount of the
economic resources available in the estimate, which has to be adhered to as far as
possible; but it is obvious that the real amount depends on the problems that
crop up during drilling and on the capacity of the engineers to address them
promptly without compromising the achieving of the objectives.
Well abandonment
If, when drilling has been completed, the well is productive hydrocarbons, a start
is made on all those operations that will ensure its economically advantageous
working, whereas if, on the contrary, it should prove to be barren or in any case
not economically exploitable, it will be shut down.
Well shutdown entails the restoring of the initial conditions of the section of the
well not lined and possibly also the lined part, if separation of the permeable
levels of different pressure is not assured.
The purpose of these measures is to prevent the transfer of fluids from one level
to the other.
The final shutdown of a well must satisfy not only the requirements set out in the
engineering best practices fixed by the operator, but must also respond to all the
requisites of law aimed at safeguarding the environment and the safety of the
people living in the vicinity of abandoned wells.
Production phase aims to the recovery of the reservoir fluids to surface followed
by their processing.
All production and maintenance activities are carried out to meet strict safety and
environmental policies and procedures.
During the production phase it is necessary to:
 control production and injection to meet up approved plans for volumes
and quality of products
 monitor and record all data to manage the reservoir, wells and facilities
The production phase begins with the first commercial volumes of hydrocarbons
(“first oil”) flowing through the wellhead – this establishes a fundamental turning
point from a cash flow stand point.
From now on, cash is generated and can be used to pay back the previous
investments, or may be made available for new projects (ex. new exploration…).
The development and production planning are based on the expected production
profile which are strongly dependent on the reservoir drive mechanism.
It is the forecasted production profile that will determine the size of facilities
required to treat and disposes the fluids and the number and phasing of wells to
be drilled.
A typical production profile is made up by three phases:
1. Build-up period
o during this period production wells are progressively brought on flow
2. Plateau period
o a constant production rate is maintained
3. Decline period
o all producers show declining of production rates
 Typical field production profile

Oil and Gas transportation

Transportation of oil
The transportation of oil is the final step that oil takes before it is distributed to
consumers. The transportation of oil is a part of midstream industry. After oil has
been extracted from the ground, it requires transportation and distribution to
refineries and upgraders that convert the oil into usable components. After
refining and upgrading, the usable petroleum products are then transported again
to distribution locations worldwide. Thus, oil is transported both in its initial crude
form and as a final product.

There are several different methods of transportation, all of which are becoming
increasingly important. Advances in exploration and extraction techniques (like
offshore drilling), means that oil is being located and recovered from increasingly
remote locations across the globe. This coupled with an increasing demand for
petroleum products has resulted in oil extraction and refining and being very far
from where people are using gasoline, diesel and kerosene. This separation of
supply and demand makes transportation vital in the petroleum industry.
Types of Transportation
There are a number of different ways that oil can be transported worldwide in
large quantities, and each type of transportation has its own benefits and
drawbacks. Several different methods of oil transportation are highlighted below.

Oil Tankers
Crude oil tankers are large ships used to transport crude oil from the Middle East,
Africa, and Latin America to refineries worldwide. Tankers that carry refined
products are known as product tankers, and carry refined petroleum products
from refineries to distribution locations.
Oil tankers can vary in size, although smaller vessels are generally used to
transport refined petroleum products whereas much larger tankers are used to
transport crude oil. These larger ships tend to be used more for crude oil as they
reduce the cost per barrel of transport of the oil. Tanker sizes are expressed in
terms of cargo tonnes - or how much cargo they can carry. Larger crude oil
tankers carry significantly more and are generally utilized in the international
crude oil trade.

Pipelines
Pipelines are systems of large transportation pipes, generally below ground, that
serve the purpose of transporting oil and natural gas within extensive distribution
networks. These lines vary in diameter depending on their use, and are generally
located underground.
Natural gas pipelines are used solely for the transport of natural gas to processing
plants and are used for distribution. Natural gas is also often delivered directly to
homes through pipelines. In addition to these two main types of pipelines, there
are also four other sub-categories of pipelines:
Gathering Lines: These lines are 10-30 centimeters in diameter, and work to
transport natural gas, crude oil, and natural gas liquids short distances. They exist
mainly to gather products from wells and move them for processing.
Feeder Lines: Feeder lines move crude oil, natural gas, and natural gas liquids
from storage tanks and processing facilities to transmission pipelines.
Transmission Pipelines: These can range from 10 centimeters in diameter to over
a meter. They carry natural gas, natural gas liquids, crude oil, and refined
products (depending on whether they are liquids or natural gas pipelines). These
transport petroleum products long distances, including over international
boundaries.
Distribution Pipelines: These range in diameter from 1-15 centimeters and are
used to distribute natural gas to homes and businesses.

Rail Transport
Oil can also be transported on long cargo trains equipped with special tanker cars,
and rail transport is used most commonly in areas without pipelines. In contrast
to oil tankers, which can hold a significant amount of crude oil in a small number
of holding tanks, rail cars can only transport the required large quantities of oil in
multiple cars. After extraction, oil is loaded onto these railcars and moved across
pre-existing tracks to the refinery. Although more cars are required to transport
significant amounts of oil, rail is a fairly cost-effective method of moving oil.
Similar to pipelines and oil tankers, rail can also be used to transport refined
petroleum products to distribution locations.

Trucks
Tanker trucks are also a type of oil transportation method; however, they are
functionally the same as rail transportation in that several large trucks with
equipped oil storage tanks are needed to move significant quantities of oil.
Generally, trucks are used to carry small capacities of oil short distances and
rarely carry crude oil. Instead, trucks are more commonly used to move refined
petroleum such as gasoline to distribution locations such as gas stations. Instead
of relying on established railways, however, trucks can operate more freely as
they only require roadways to travel.

Barges
Barges are primarily used on rivers and canals. They require less infrastructure
than pipelines, but are more costly, transport much less volume, and take more
time to load.

Tugboats
The increasing demand for oil has led to deeper drilling, with larger drilling rigs
located further offshore, which has justified building of larger and more powerful
tugs and larger barges.

Transportation of gas:
Natural gas is one of the most important energy sources in the world. Almost
every country needs it in large quantities, but the number of natural gas fields is
limited. Therefore, natural gas has to travel long distances to reach the consumer.
As a gas, the low density of natural gas presents special challenges for
transportation. Because of its volume, it is not easily stored or moved by vehicle.
For transportation across land, natural gas is usually moved through a network of
pipelines. For transport across bodies of water, it is liquefied and carried by ship.
It is important to note that natural gas is flammable, therefore, to reach the goal
safely, the transportation system consists of a complex network of pipelines. In
addition to security, speed and efficiency are also important.

Natural gas transported on the mainline natural gas transportation (pipeline)

system must meet specific quality measures so that the pipeline network (or grid)
can provide uniform quality natural gas. Wellhead natural gas may contain
contaminants and hydrocarbon gas liquids (HGL) that must be removed before
the natural gas can be safely delivered to the high-pressure, long-distance
pipelines that transport natural gas to consumers. Natural gas typically moves
from natural gas and oil wells through a gathering system of pipelines to natural
gas processing plants for treatment
Depending on where they are in a transportation system all natural gas pipelines
are either:
• Transmission pipelines — the large lines (typically 6-48 inches in diameter)
that move gas long distances around the country, often at high pressures
(typically 200 – 1500 psi);
The three types of transmission pipelines are
o Interstate natural gas pipelines operate and transport natural gas across
state borders.
o Intrastate natural gas pipelines operate and transport natural gas within a
state border.
o Hinshaw natural gas pipelines receive natural gas from interstate pipelines
and deliver it to consumers for consumption within a state border.

• Distribution pipelines — are a system of mains and service lines that deliver
natural gas to our individual homes and businesses. They operate at a relatively
low pressure;
• Gathering pipelines — transporting gas away from the point of production
(well pad) to another facility for further refinement or to transmission pipelines;
• Production Lines — the pipes and equipment, normally near the wellhead,
used to produce and prepare the gas for transport.

Utilization of oil and natural gas

Natural gas is the cheapest and fastest way for most countries to meet their
growing need for energy while reducing CO2 emissions and improving air quality.
As an abundantly available and accessible energy source, natural gas can meet
global demand for at least the next 250 years. At the same time, natural gas is
cleaner than many other fuels, emitting 50 percent less CO2 than coal.
The advantages of natural gas for power production are many. In addition to the
above, natural gas plants are cheaper to build and operate than other types of
power plants. Natural gas is also the best option for supporting intermittent
renewable power generation.
In the 19th and early 20th centuries, natural gas was used primarily for street and
building lighting, providing what was known as gaslight. Today, improved
distribution of gas has made possible a wide variety of uses in homes, businesses,
factories, and power plants.

Electric power
The fastest growing use of natural gas today is for the generation of electric
power. Natural gas power plants usually generate electricity in gas turbines
(which are derived from jet engines), directly using the hot exhaust gases of fuel
combustion.
Natural gas-fired plants have greater operational flexibility than coal plants
because they can be fired up and turned down rapidly. Because of this, many
natural gas plants were originally used to provide peaking capacity at times when
electricity demand was especially high, such as the summer months when air
conditioning is widely used.

Oil & Gas and Pipeline Industry Use

Companies that produce and transport natural gas are also consumers.
Transporting natural gas through pipelines requires compression stations to keep
the gas pressurized and flowing through the pipeline. Many of these compression
stations use natural gas as a fuel. Many oil refineries use natural gas for heating
and power generation.

Industrial and other uses

Natural gas sees a broad range of other uses in industry, as a source of both heat
and power and as an input for producing plastics and chemicals. Most hydrogen
gas (H2) production, for example, comes from reacting high temperature water
vapor (steam) with methane. Today, the resulting hydrogen is mostly used to
produce ammonia for fertilizer, one of the most important industrial products
derived from natural gas.
Hydrogen produced from natural gas can itself be used as a fuel. The most
efficient way to convert hydrogen into electricity is by using a fuel cell, which
combines hydrogen with oxygen to produce electricity, water, and heat. Although
the process of reforming natural gas to hydrogen still has associated carbon
dioxide emissions, the amount released for each unit of electricity generated is
much lower than for a combustion turbine.

Heating
Heat from natural gas is delivered from forced-air systems at temperatures
between 50-60 degrees Celsius. The air from an electric heat pump is typically
delivered at 30-35 degrees Celsius, which is warm enough to heat a room – but
much cooler than the average human temperature of 36-37 degrees Celsius.
If somebody asks what we use natural gas for, we can say confidently that it is
mostly used for heating and electricity generation, but there are other important
uses as the above image shows.

Natural Gas as a Vehicle Fuel

Natural gas has an enormous potential for increased use as a vehicle fuel. The
main barriers to this have been the short range of the vehicles, limited refueling
options, and slow refueling times. However, over the past few years refueling
station prices have dropped to just a few hundred dollars, and these can be
placed in residences where the vehicles can be refueled overnight or between
trips.
Since about half of all residences in the United States are supplied with natural
gas, the potential to increase the number of natural gas vehicles on the road is
very high. In addition, the discovery of natural gas in shale deposits around the
country has increased the availability of gas and decreased the price.
Natural gas has significant advantages over gasoline and diesel fuel. Natural gas
vehicles emit 60-90% less smog-producing pollutants and 30-40% less greenhouse
gas emissions. It also costs less per mile to operate a natural gas vehicle
compared to a gasoline or diesel vehicle [4]. And, natural gas is produced locally
instead of imported.
Utilization of Oil
Crude oil and other liquids produced from fossil fuels are refined into petroleum
products that people use for many different purposes. Biofuels are also used as
petroleum products, mainly in mixtures with gasoline and diesel fuel.

Transportation: Petroleum is a key source of energy for transportation. Nearly

two-thirds of transportation fuels are obtained from petroleum. The
transportation fuels that are derived from petroleum include gasoline/petrol,
diesel, liquefied petroleum gas (LPG), jet fuel, and marine fuel. While
gasoline/petrol is used in cars, motorcycles, light trucks, and boats, diesel is used
as fuel by trucks, buses, trains, boats and ships. Jet airplanes and some types of
helicopters use kerosene, a byproduct of petroleum refining. Gasoline is the
dominant transportation fuel in the US, accounting for 55% of total transportation
energy use in the country in 2016, according to the US Energy Information
Department.

Power generation: Though petroleum is largely used in transportation, it is also

used in electricity generation. A fossil fuel power station uses petroleum or
natural gas to produce electricity. Power generation from oil still accounts for a
significant share in energy mix of many countries, even though coal is the
dominant source for electricity generation. However, oil-fired power plants cause
significant environmental pollution. Oil-fired power plants also consume huge
amounts of water. According to the Joint Organizations Data Initiative (JODI),
Saudi Arabia is one of the few countries that use crude oil directly for power
generation, due to lack of domestic coal production.

Lubricants: Derived from petroleum, lubricants are used in many types of

machines in almost all the industries. Lubricants are used in all kinds of vehicles
and industrial machines to reduce friction. Besides, they are used in cooking, bio
applications on humans, ultrasound examination, and medical examinations.
Lubricants typically contain 90% of base oil, usually petroleum fractions.

Domestic uses: Many household products such as detergents, vaseline, wax, and

others are derived from petroleum. Kerosene, a byproduct of petroleum, still
used in many countries for cooking, lighting and other domestic purposes.