University of zakho

College of engineering
Petroleum department

Report about

Oil Industry and some little information about Kurdistan

oil

Name; Nihad Abdulkarim Ahmad

Lecture: petroleum economic
Third stage – Semester 5
Lecturer: Miss.Lolav
 Content:
o Introduction
o Discussion
 Upstream
 Onshore
 Offshore
 Downstream
 Refinery
 Marketing
 Company
 How KRG deal with oil
industry and Economic
of oil in Kurdistan.

o Conclusion
o Reference
Introduction

The most important thing in the world is the world economy and
the world economy of many petroleum, Now the whole world has
touched on petroleum and without petroleum many things around
the world will be coming out of the world. Until my country also rely
to petroleum because of in my country have significant amount of
petroleum.

If we want to industry to petroleum we should know some step to

prepare petroleum to industry , like consents of petroleum ,and
upstream and downstream section.

Therefore In here I want to give some information about

petroleum.

First we should know ‘ What is crude oil ?’

Crude oil is an organic liquid it is make up of thousands of molecules
composed of different hydrogen and carbon atoms, often we found
crude oil below the Earth’s surface its about 5 km to 10 km deep
from upper of crust of earth. And this part of Earth that
petroleum make up on it we called ‘Veneer’.

Now in this report we talk about a brief oil industry..

A drilling rig in the Miran block in the semi-autonomous Kurdistan region, Qazan, Iraq
Discussion

As we know the first oil well were drilled in china about 4th century
ad. The Chinese used simple tools to dig this well. Later in the
century, oil was discovered in Europe and Asia, but the modern oil
industry began in the 19th century, Poland discovered oil in 1853,
and Pennsylvania (us) on August 27, 1859..

And in Kurdistan also the first well discovery at Baba Gurgur in

1927 from Turkish Petroleum Company which renamed to Iraq
petroleum company .

The oil is formed by a combination of hydrocarbon. Hydrocarbon

naturally accumulates thousands of feet below the surface earth
from deposition of dead organic materials like marine animals and
plants that died during the palaeozonic Era time. palaeozonic Era is
between 245 and 544 million years ago .

It is trapped underground under several processes such as high

pressure and high temperatures. These hydrocarbons are crushed
and eventually converted to crude oil millions of years later..
Now we talk about a big adventure , it’s finding oil, and get it out

Finding and extracting fossil fuels is a challenging and exciting

task. It takes a lot of effort and travel to distant lands and the
results can often be surprising.

So now how do we find the oil?

Discovering oil begins with a simple decision to test the oil based
on preliminary research data. Once the oil has been detected, the
initial results are checked. If the results are good, then the
development of the production source begins. Because of the
importance of oil in our lives, it is necessary to understand how the
industry as a whole works in both its upstream and downstream
sectors. For this, it is helpful to look at the oil industry by first
considering what is called the upstream sector.

upstream
The upstream sector is the part of the oil industry involved with
finding oil fields and raising oil in the ground. The above functions
include the test function, such as search underground (or
underwater) oil and gas reservoirs, and the initial drilling, followed
by the production phase, which is the actual extraction of oil from
the ground. And some times we called upstream (E&P)sector.

So now we talk more about Exploration

The test is almost identical to the work of the detectives. It
requires looking at clues, carefully observing world conditions,
writing notes of various information and evaluating research data.
This is the work of petroleum geoscientists, geologists. Petroleum
geoscientists working for oil companies began searching for
potential oil spaces. They look for clues that may indicate the
presence of hydrocarbons underground responsible for
determining the best places to drill. They start by examining the
shapes of different underground layers of rock.
They have to use special tools to see the rocks beneath the
surface. Therefore, use advanced technology and specialized tools
such as aerial photography, satellite imagery and specialized
equipment. that measure variations in the Earth’s gravity and
magnetic fields geoscientists try to identify likely crude oil fields.

Oil can be found underground under the sea. In this case, special
vessels are used to monitor these underwater oil fields. Local
scientists are using a number of specialized technology tools, such
as sound waves used in seismic technology, to create a clearer
picture of underwater rocks.. But the only way to be absolutely
sure that there is oil in the ground is simply to drill a well.

This is a big gamble because not all wells result in the discovery of
oil. It may take the drilling of many different wells until a new oil
field found. This is costly because high-quality equipment is needed
and more people need to be employed. That is why local scientists
then provided all their research data to economists and financial
planners at oil companies, which helped decide whether to mine
exploration resources or not.

Offshore seismic Onshore seismic

Once oil is found after the preliminary exploration phase and the
drilling of exploratory wells, the production phase can begin. There
are two forms of drilling: onshore and offshore.

Crude oil found underground is usually mixed with water, sand, salt
and natural gas. As it is extracted, the pressure of these different
substances must be kept at just the right levels. This is done by
turning valves on and off at the surface level. Because these valves
are often green in colour and the small dials are red, much like the
Decorated pine trees at Christmastime, this meeting is often called
the Christmas tree.

In Kurdistan found oil in some place , and there have many place at
step of Exploration

This picture is →
maps of Kurdistan

This map shows the

location of the oil, as
well as the location of
the exploration.
Onshore drilling
Coastal drilling is used for underground oil reservoirs anywhere on
dry land. Mining in the world usually requires minimal investment
and involves minimal risk.

Once the crude oil has been extracted from the ground, it is taken
to a collection point where water, sand, and salt are extracted.
While there, the natural gas is also separated from the crude oil
and sent to a stirring station. The oil is then dumped into the tanks
before being sent to a refinery for processing or an oil tanker for
shipment.

OFFshore drilling
Coastal drilling is used to extract oil deposits buried under the
sea. Coastal drilling rigs are installed, processed and serviced on
large marine platforms. These stadiums can float or sit on long
‘legs’ that touch the sea. In this way, the offshore rig is able to
withstand high pressures and winds, especially in cold climates.
Because of your complexity, mining off the coast consumes more
than 65% of the planned revenue even before the oil is
extracted, which increases the risk of financial loss, especially
when the resources are dry!

Finding underground oil wells and drilling wells is therefore a

risky, complex and expensive operation.

The cost of drilling the exploration oil well can be anything from $
1 million to $ 35 million. The construction and development of a well
depends on many factors: the potential of the potential oil field
(whether in the ground or under water), the size of the oil field,
the amount of information already available and the type of rocks
found underground.
Coastal drilling is used to extract oil deposits buried under the
sea. Coastal drills are fitted, processed and serviced at large
maritime ports. These platforms can float or sit on long ‘legs’ that
touch the sea. In this way, the offshore rig is able to withstand
high pressures and winds, especially in cold climates. Because of
your complexity, mining along the coast consumes more than 65%
of the planned revenue even before the oil is extracted, which
increases the risk of financial loss, especially when resources are
dry!

Finding underground oil wells and drilling is therefore a

dangerous, complex and expensive task.

The cost of drilling for oil exploration can be anything from $ 1

million to $ 35 million. The construction and development of a well
depends on a number of factors: potential oil potential (whether in
the ground or under water), the size of the oil field, the amount of
information already available and the type of rocks found
underground.

Downstream
The downstream sector is part of an oil industry that is involved
in refining crude oil and refining it into various products. It
includes the transportation and sale of crude oil and its products.

The process by which crude oil is purified and processed to

remove impurities is called refining.

This process is also used to separate oil from different petroleum

products. All of this took place at an oil refinery. All filters
perform three basic functions: Separation, Conversion,Treatment.

Divergence At this stage, the refinery heats the crude oil into
varying temperatures. Different parts of crude oil have different
boiling points. As the temperature rises, these distinct parts or
fractions are separated. This is done inside the distillation towers.

The simplest components, including gasoline and Liquefied

Petroleum Gas (LPG), evaporate quickly and rise to the top of the
mill towers. When it thickens it becomes a liquid again. Medium-
weight pieces, consisting of paraffin and diesel fuel distillates in
the center of the distillation tower. The heaviest liquid (called
residual oil) has the highest boiling point and comes out from under
the filter tower

Filtering centers also use chemicals called Catalysts. This helps to

further refine the oil by releasing carbon or adding hydrogen.

And filtration methods are constantly being developed. The variety

of complex tasks currently in use has improved its effect. Refinery
facilities today turn more than half of all crude oil drums into
gasoline. One barrel equals 159 liters (42 gallons US). This is a
major development since just 70 years ago when only 41 liters (11
liters) of fuel were produced in each crude container.

Figure of Distillation tower

Transformation At this stage, high temperatures and pressures, as
well as chemical catalysts, used to 'split' or break down heavy
hydrocarbon molecules into smaller, more desirable ones. This is a
widely used conversion method and is called Cracking.

This is done in a split unit consisting of a thick-walled reactor, as

well as a network of large furnaces, separators and compartments.

Some filtration processes can recycle hydrocarbon molecules

rather than just separate them, while other processes purify them
from impurities such as sulfur (a process called desulphurization)
that are harmful to the environment.

Filters also handle waste generated by the filtration process. This

helps to reduce air and water pollution. Modern filtration facilities
are equipped with advanced pollution control systems. They clean
dirty water, remove chemicals and trace gases and toxic
substances.

An oil refinery is a network of plant-connected structures where

the oil is pre-purified and divided into separate parts or fractions.
These components are then modified, continuously processed and
assembled to produce specific oil products according to pre-set
specifications.

Treatment The last stage is treatment. In this step, the

components produced during the separation are treated to improve
their quality. They are then synthesized with other elements to
produce final products.

Various products can be made from crude oil, including petrol, jet
fuel, paraffin, diesel and petroleum coke.

The various products are then placed in large storage tanks until
transported to places such as gas stations, airports and chemical
plants.
This is the figure of
one refining company
in Kurdistan, the
Kurdish oil company
'KAR'

capable of filtering
40,000 barrels of oil
per day. This is
In addition to fuel oils, refineries can produce other oil-based
Erbil's place.
products like asphalt, cleaning products, paints—and even some of
the components used to make chewing gum and diapers.

Another step in Downstream transportation

The transportation and delivery of crude oil is a major global

business and is an important part of the downstream sector.

It includes the transfer of crude oil into consumer countries as

well as the distribution and sale of crude oil products. Getting oil
from a well to a refinery, and delivering products to service
stations, requires a complex transportation and storage system. In
fact, millions of barrels of oil are transported worldwide each day
through these pipelines, in tanks and thousands of tanks and
trucks.

After shipping we close the fuel to consumers for fuel quality.

The best way to transport oil from Kurdistan to the World Market
by pipeline
Figure of
Pipeline from
Kurdistan to
World port
It’s Go through
Turkeya
For Example in mid
year of 2017
Kurdistan sent about
81 million barrel by
pipeline

And we have some kind of crude oil

light / heavy

Crude oil can be classified as light or heavy or medium depending

on the gravity of the API (or congestion). In general, the higher
the API gravity, the lower its density.

The oil is light in color, light in strength, and easy to flow, often
containing small amounts of metals and sulfur compounds. It is
known as light fat. High iron and sulfur oils are considered to be
low quality oils. It is usually high in carbon, lacks enough hydrogen
and takes a long time to produce and is difficult to process. It is
known as heavy fat.

Sour / Sweet Oil Crude oil can be classified as sour or sweet,

depending on the amount of sulfur it contains. Oils with high sulfur
content (0.5% and above, by weight) are considered acidic. On the
other hand, crude oil has a low content of these sulfur compounds.

In Kurdistan we have all kinds of oils, such as tawke field it's heavy
oil, API 22 degree, and Kirkuk field it's middle, API 34 degree, and
khanaqin, shewashok it's light oil, API over than 35 degree.
And when Kurdistan is independent, it is ranked 10th in the world
by oil reservoir, because it has 45 billion oil reserves, followed by
Libya, Libya has 48 billion stored oil reserves.

The following is a list of international oil companies (IOCs)

operating in Iraq Kurdistan under licenses issued by the Erbil
Regional State Department of Environmental Affairs:

United States United Kingdom United Arab

Aspect Energy Afren Emirates
Chevron Gulf Keystone Abu Dhabi National
Hess Petroleum Energy Company
Hunt Petroleum Perenco (TAQA)
Murphy Oil Sterling Energy
Corporation
Turkey South Korea Russia
Dogan Enerji Korea National Oil Gazprom
Genel Energy Company
Petoil
Papua New Norway India
Guinea DNO International Reliance Industries
Oil Search
Hungary China Austria
MOL Addax Petroleum OMV
Canada Its 27 company
Groundstar
Resources
Niko Resources
Shamaran
Petroleum
Talisman Energy
Vast Exploration
WesternZagros
 Figure: Heavy crude oil sample

Here I want to explain "How much oil does the world need?" we
need to know The world needs more energy as the population
grows and as countries develop economically.

The United States has the world's largest oil demand. Although it
has only about 5 percent of the world's population, it consumes
about 25% of the world's total oil production and 45% of global
oil production. And as the economies of countries like Brazil
Russia, India and China get rich, and their economy grows, their
demand for extra oil will grow. In order to meet all of this oil
demand without causing market inequality, appropriate oil supply
standards are required. Measuring this has always been a
challenge for professionals working in the oil industry.
How KRG deal with oil industry and Economic of oil in Kurdistan

With 45 billion gallons of Kurdistan oil reserves, the Iraqi-Kurds

carry about a third of all the trillion 150 billion gallons of raw gold
that have not been used. If the independent KRG region were a
state, it would be 10th in the world with large petrol depots, coming
in behind Libya. This makes the Kurdish country a hot commodity
in an area that already has a political fire.

Kurdistan and oil issues are naturally intertwined. Some view oil as
a catalyst for the recent United States support of Kurdish
Peshmerga forces in the fight against Islamic State (ISIS)
campaigns in the city, although the US has also sent aid to help
capture Yazidis and others on Mount ISjar under siege by ISIS.
region.

Most of Kurdistan's oil business is based in Erbil, a strong KRG base

in Northern Iraq. Since the launch began in 2007, Erbil owns
Chevron, Exxon Mobile, Hess, Total and many other major
petroleum players. The new pipeline went into operation in early
2014, located in the fully known KRG area. It connects the oil field
at Khurmala south of Erbil across the Turkish border and enters
the Mediterranean seaport for foreign trade.

Petroleum develops region: The total GDP of Iraq-Kurdistan has

grown significantly since the 2007 oil release, from $ 800 a decade
ago to $ 5,600 in 2012.

It currently produces 350,000 million barrels of oil per day, by the

end of 2015, KRG will produce one million barrels of oil per day,
according to a KRG statement released on November 17.
 A worker is seen at the Tawke oil refinery in the autonomous Iraqi region of Kurdistan in this 2009
photo.

in August 2019 KRG sent 474,000 barrels per day, 13% of the total
exports by the Iraqi unity government (3.6 million barrels per day)

Apart from low export numbers, Kurdish profits from oil sales have
declined sharply due to lawsuits surrounding the sector, which has
identified Kurdish oil as a risky investment. In addition, the cost
of extracting, selling, and exporting Kurdish oil is four times higher
than that of Iraqi oil. For example, to export one barrel of oil, FGI
costs about $ 6.

while KRG pays about $ 25 and another $ 18 as a fare to Turkey

and its affiliated companies. While the average price of oil in
Kurdistan was $ 54 per barrel in the last half of 2018, KRG
received only $ 29 per barrel.

Knowing these simple facts, it is clear to see the extent of the

economic damage caused by the Kurdistan region of Iraq, where
Iraq cuts the regional budget by 17%.
 Oil pump in Kirkuk field

Conclusion

So oil is important in our life, because we used for many purpose

without using for energy , we used for making many thing.

Oil is make up in Earth crust from hydrocarbons.

Hydrocarbons is a died organism that deposition before million

years

In industry of oil we have two sector;

 Upstream deals with exploration , Production

 Downstream deals with refinery , transportation , marketing

And we have onshore drilling and offshore drilling.

We seal the oil by Quality as heavy oil or light oil or middle , The
heavy oil is better than light oil.
In Kurdistan we have all quality of oil , just we need to prepared
oil for international marketing and making in industry to prepare
our economic. We are on significant amount oil , if we studying
hard we can make the Kurdish economic growing to better.

Upstream Downstream
Reference:

For information I used (we need to Know ) books its about oil
industary

And I used my college lecture

And geoexpro site (GEO ExPro )

And Ekurd daily (Ekurd Daily News Kurdistan - Independent from Kurdistan )

www.economic-development-iraq.com

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New oil pipeline boosts Iraqi Kurdistan, the region made of three
northern provinces - The Washington Post