BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY

Assignment 01

Petroleum: Global and Bangladesh Context (Reserve, Production,

Contribution, Impact and Future)

Course No: ME 463

Course Title: Petroleum Engineering
Petroleum, also known as crude oil, is a naturally occurring, flammable liquid composed of
various organic compounds. It is a fossil fuel that forms from the remains of plants and
microorganisms that lived millions of years ago. Petroleum is found in underground reservoirs
or oil fields and is extracted through drilling and production operations.

Here are some key points about petroleum:

1. Composition: Petroleum is a complex mixture of hydrocarbons, which are organic

compounds composed primarily of carbon and hydrogen atoms. It also contains small
amounts of other elements such as sulfur, nitrogen, and oxygen, as well as trace
amounts of metals.

2. Extraction: Petroleum extraction involves drilling wells into underground reservoirs and
using various techniques to bring the oil to the surface. These techniques include
primary extraction methods that rely on the natural pressure of the reservoir, as well as
secondary and tertiary methods that use technologies like water or gas injection to
enhance recovery.

3. Refining: Crude oil is not directly usable, so it undergoes a refining process to separate it
into different components based on their boiling points. This process, known as refining
or petroleum refining, involves distillation, cracking, and other processes to convert
crude oil into products such as gasoline, diesel fuel, jet fuel, lubricants, and
petrochemicals.

4. Energy Source: Petroleum is a major source of energy worldwide. It is primarily used as

a fuel for transportation, including automobiles, airplanes, ships, and trains. It is also
used for heating and power generation in various industries and for producing electricity
in some power plants.

5. Environmental Impact: The extraction, refining, and burning of petroleum can have
significant environmental impacts. Oil spills, air pollution, greenhouse gas emissions,
and habitat destruction are some of the environmental concerns associated with
petroleum activities. The search for cleaner and more sustainable energy sources is
driven, in part, by these environmental considerations.
 6. Economic Importance: Petroleum plays a crucial role in the global economy. Oil-
producing countries rely on petroleum exports for revenue, and oil and gas companies
form a significant part of many national economies. Fluctuations in oil prices can have
far-reaching effects on industries, economies, and global financial markets.

7. Alternatives and Future Outlook: Due to concerns about climate change and the finite
nature of fossil fuels, there is a growing interest in renewable energy sources and
alternative fuels to reduce dependence on petroleum. Efforts are being made to
develop and scale up technologies for solar power, wind energy, biofuels, hydrogen, and
other sustainable energy options.

Petroleum is a valuable resource that has shaped the modern world and continues to be a
critical part of the global energy landscape. However, there is an increasing focus on
diversifying energy sources and transitioning to cleaner and more sustainable alternatives.

Oil and gas reserves: Oil and gas reserves denote discovered quantities of crude oil and natural
gas (oil or gas fields) that can be profitably produced/recovered from an approved development.
Oil and gas reserves tied to approved operational plans filed on the day of reserves reporting are
also sensitive to fluctuating global market pricing. The remaining resource estimates (after the
reserves have been accounted) are likely sub-commercial and may still be under appraisal with
the potential to be technically recoverable once commercially established. Natural gas is
frequently associated with oil directly and gas reserves are commonly quoted in barrels of oil
equivalent (BoE). Consequently, both oil and gas reserves, as well as resource estimates, follow
the same reporting guidelines, and are referred to collectively hereinafter as oil & gas.
There are 1.65 trillion barrels of proven oil reserves in the world as of 2017.

The world has proven reserves equivalent to 46.6 times its annual consumption levels. This
means it has about 47 years of oil left (at current consumption levels and excluding unproven
reserves).
As of January 1, 2020, there were an estimated 7,257 trillion cubic feet (Tcf) of total world proved
reserves of natural gas. Proved reserves of natural gas are the estimated quantities that analysis
of geological and engineering data demonstrate with reasonable certainty to be recoverable in
future years from reservoirs under existing economic and operating conditions.

Global coal reserve: There are 1,139,471 tons (short tons, st) of proven coal reserves in the
world as of 2016.
The world has proven reserves equivalent to 133.1 times its annual consumption. This means it
has about 133 years of coal left (at current consumption levels and excluding unproven reserves).
Petroleum Production: Petroleum extraction and production are complex processes that involve
various techniques and technologies to access and extract crude oil from underground reserves.
This essay will explore the key stages and methods involved in petroleum extraction and
production.

1. Exploration: The first step in petroleum extraction is exploration, where geologists

and geophysicists analyze geological formations and conduct surveys to identify
potential oil reserves. This process involves seismic imaging, gravity and magnetic
surveys, and other geophysical methods to gather data about subsurface structures
and locate areas with high oil potential.
2. Drilling: Once a potential oil reservoir is identified, drilling is initiated. This involves
the use of drilling rigs and equipment to create a borehole into the earth's surface.
The primary drilling method used is rotary drilling, where a drill bit is rotated and
applied with downward pressure to penetrate the rock formations. As drilling
progresses, steel casing and cement are inserted into the well to ensure stability and
prevent fluid migration.
3. Well Completion: After drilling, the well needs to be completed to enable oil
production. This process involves installing production casing, perforating the casing
at specific intervals to allow oil flow, and setting up a wellhead assembly on the
surface. Additionally, various downhole tools, such as packers and valves, may be
installed to control the flow of oil and gas.
4. Reservoir Evaluation: Before commencing production, reservoir evaluation is
conducted to assess the characteristics of the oil reservoir. This involves conducting
well tests, analyzing rock and fluid samples, and using specialized logging tools to
gather data on reservoir properties, such as pressure, permeability, and fluid
composition. This information helps optimize production strategies and estimate the
recoverable reserves.
5. Primary Production: Primary production involves the initial extraction of oil from the
reservoir using natural reservoir pressure or artificial lift methods. In the case of
natural pressure, the oil is pushed to the surface by the pressure of the reservoir. If
the natural pressure is insufficient, various artificial lift methods, such as beam
 pumps, electric submersible pumps, or gas lift systems, are employed to enhance oil
recovery.
6. Enhanced Oil Recovery (EOR): As the primary production declines, secondary and
tertiary recovery methods, collectively known as enhanced oil recovery (EOR), are
employed to extract more oil from the reservoir. Common EOR techniques include
water flooding, where water is injected into the reservoir to displace oil, and gas
injection methods like carbon dioxide (CO2) flooding or steam injection. These
methods help maintain reservoir pressure, improve sweep efficiency, and mobilize
trapped oil.
7. Surface Processing and Refining: Once the oil is extracted, it is transported to
processing facilities where it undergoes surface separation and refining. This involves
separating oil, gas, and water using separation equipment. The crude oil then
undergoes refining processes, such as distillation, cracking, and purification, to
separate it into various components like gasoline, diesel, jet fuel, and lubricants.
8. Transportation and Distribution: After refining, the petroleum products are
transported via pipelines, tanker ships, trucks, or rail to distribution centers, storage
facilities, and end consumers. Extensive logistics networks ensure the efficient
transportation and delivery of petroleum products to various markets and regions.

In conclusion, petroleum extraction and production involve a series of stages, from exploration
to refining, to access and extract crude oil from underground reservoirs. The industry employs
advanced technologies and methods to maximize oil recovery while ensuring efficient and safe
operations. These processes are essential for meeting global energy demands and powering
various sectors of the economy, although there is a growing need to transition towards cleaner
and sustainable energy sources to address environmental concerns.

Global Petroleum Consumption: Global petroleum energy consumption plays a pivotal role in
powering economies, driving transportation, and meeting various energy demands across the
world. As one of the primary sources of energy, petroleum fuels have been extensively utilized
for decades. This essay will delve into the key aspects of global petroleum energy consumption,
including its significance, trends, challenges, and potential alternatives.
Petroleum, also known as crude oil, is a fossil fuel formed from the remains of ancient plants and
animals. Its extraction, refinement, and utilization have become integral to modern societies. The
primary sectors relying on petroleum energy are transportation, industry, and residential and
commercial sectors. The transportation sector, in particular, heavily depends on petroleum fuels
for automobiles, ships, airplanes, and trains.

Global petroleum energy consumption has exhibited consistent growth over the past century,
closely tied to economic development and population growth. Emerging economies, such as
China and India, have experienced rapid industrialization and urbanization, leading to increased
energy demands, particularly in transportation. This, coupled with the reliance on petroleum in
developed countries, has resulted in a substantial rise in global petroleum consumption.

Future Challenges of Petroleum Consumption: The future of petroleum energy consumption

faces several challenges. One of the foremost concerns is environmental impact. The burning of
petroleum fuels releases carbon dioxide and other greenhouse gases, contributing to global
warming and climate change. This has led to a growing urgency to reduce reliance on petroleum
and transition towards cleaner and more sustainable energy sources.

Additionally, geopolitical factors and market dynamics influence global petroleum consumption.
Oil-producing nations often play a significant role in global energy markets, impacting prices and
supply. Political instability in oil-rich regions, conflicts, and changes in policies can disrupt the
smooth flow of petroleum, causing fluctuations in consumption patterns and energy security
concerns for consuming countries.

To mitigate the challenges associated with petroleum energy consumption, the world is gradually
shifting towards alternative energy sources. Renewable energy, including solar, wind, hydro, and
bioenergy, is gaining traction as a sustainable and cleaner substitute. Governments, businesses,
and individuals are increasingly investing in renewable energy infrastructure and technologies to
reduce carbon emissions and achieve energy diversification.

Moreover, advancements in electric vehicles (EVs) present a promising avenue for reducing
petroleum consumption in the transportation sector. The development of EVs, coupled with the
expansion of charging infrastructure, is gradually reshaping the automotive industry. As battery
technology improves and costs decline, the transition to electric mobility is expected to
accelerate, reducing the reliance on petroleum fuels for transportation.

Furthermore, energy efficiency measures and conservation efforts are vital to curbing petroleum
consumption. Improvements in vehicle fuel efficiency standards, building insulation, and
industrial processes can significantly reduce energy demands, lessening the reliance on
petroleum.

In conclusion, global petroleum energy consumption is a crucial component of the world's energy
mix. However, the challenges posed by environmental concerns, geopolitical factors, and the
need for energy diversification are driving the exploration of alternatives. Renewable energy
sources, electric vehicles, and energy efficiency measures are gradually reshaping the energy
landscape. As the world strives to address climate change and achieve sustainable development,
transitioning away from petroleum towards cleaner and more sustainable energy sources is
essential.

Impact of Petroleum: There are both positive and negative impacts of petroleum on human.
Petroleum provides transportation, heat, light, and plastics to global consumers. It is easy to
extract but is a non-renewable, limited supply source of energy. Petroleum has a high power ratio
and is easy to transport.
However, the extraction process and the byproducts of the use of petroleum are toxic to the
environment. Underwater drilling may cause leaks and fracking can affect the water table.
Carbon released into the atmosphere by using petroleum increases temperatures and is
associated with global warming.

Pros:
● Stable energy source
● Easily extracted
● Variety of uses
● High power ratio
● Easily transportable
Cons:
● Carbon emissions are toxic to the environment.
● Transportation can damage the environment.
● Extraction process is harmful to the environment.

Present scenario of energy consumption in Bangladesh: Primary energy sources of Bangladesh

are Natural gas, coal, biomass, petroleum, hydro energy. Natural gas is covering about 49.2%
which is about one half of total primary energy source while biomass 34.6%, petroleum 15.6%,
coal 0.4%, hydro 0.3%.

Natural gas and petroleum in Bangladesh: Bangladesh is the sixteenth-largest producer of

natural gas in Asia. Gas supplies meet 56% of domestic energy demand. However, the country
faces an acute energy crisis in meeting the demands of its vast and growing population.
Bangladesh is a net importer of crude oil and petroleum products. The energy sector is
dominated by state-owned companies, including Petrobangla and the Bangladesh Petroleum
Corporation. Chevron, ConocoPhillips, Equinor, Gazprom and ONGC are major international
companies engaged in Bangladesh's hydrocarbon industry, with Chevron's gas fields accounting
for 50% of natural gas production.
Geologists believe the country's maritime exclusive economic zone holds one of the largest oil
and gas reserves in the Asia-Pacific. Protectionism and a lack of technical capacity have
impeded Bangladesh's potential to emerge as a major global hydrocarbon producer. Two LNG
Terminal and a gas pipeline will be created to ease the Bangladesh gas shortage.
As of 2015, the natural gas reserves of Bangladesh is 14.16 trillion cubic feet. The country has
an average daily natural gas production of around 2,700 million cubic feet.
The Bibiyana gas field in Habiganj District is the country's largest gas field. Oil production in
2013 was 4,500 bbl/d against a demand of 119,000 bbl/d. The downstream sector in
Bangladesh remains relatively under-developed.
Petrobangla is the principal energy company in Bangladesh. Its subsidiary, the Bangladesh
Petroleum Exploration Company (BAPEX), is responsible for exploration activities. International
oil companies must sell natural gas to Petrobangla at a government-determined price and are
restricted in their ability to sell natural gas to customers directly. The gas distribution network is
dominated by the Titas Gas company, as well as regional companies in North Bengal and Sylhet.
Due to the energy crisis in recent years, Bangladesh has planned to import gas from Qatar to
meet demands in the short-term. The country's first LNG Terminal will be built in
Matarbari, Cox's Bazar for imports and will be a floating facility. Bangladesh plans to build a
permanent LNG Terminal on Maheshkhali Island in the future.
Compressed Natural Gas (CNG) is widely used by vehicles in Bangladesh.
The Eastern Refinery in Chittagong is the country's largest oil refinery. The Bangladesh
Petroleum Corporation is the state-owned holding company which regulates the market
for petroleum products through its subsidiaries: the Jamuna Oil Company which is the country's
largest distributor and was established in 1964 as Pakistan National Oil Limited; the Padma Oil
Company which was formerly known as Burmah Eastern Limited, a subsidiary of Burmah
Oiluntil 1977; and Meghna Petroleum.

Coal: Coal is one of the cheapest primary energy source in world. In Bangladesh, five coal fields
have been discovered so far in the north-western part of Bangladesh with estimated reserve of
more than 3 billion tones.[1] The name of these deposits are-Barapukuria coal field, Phulbari
and Dighipara coal field, Khalashpir coal field and Jamalganj coal field. The five discovered coal
mines with their respective reserves are given below.
The first coal mine of the country at Barapukuria has been developed by Petrobangla. At
present, Barapukuria coal mine is producing about 4000-5000 metric tons daily. In financial year
2014-15, total 6,75,775 metric tons of coal was produced from this mine.[1] The coal extracted
from this mine is mainly used to fuel the only coal fired 250 MW power generation plant in the
country located at Barapukuria. The remainder is used in brick fields, boiler industry, steel re-
rolling mills etc. Bangladesh import large amount of coal every year. It imported 16,51,076
metric tons coal in 2013.

Future Scenario in Energy Sector: The future of the energy sector lies in a dynamic transition
towards a more sustainable and diversified mix, with both petroleum and renewable energy
playing crucial roles. While petroleum will continue to be a significant energy source in the near
term, the momentum towards renewable energy sources is expected to accelerate. This essay
will explore the future prospects of both the petroleum and renewable energy sectors.

Petroleum Sector: The petroleum sector will continue to play a vital role in the global energy
landscape, particularly in transportation and industrial sectors. However, several factors will
shape the future of this sector:

1. Energy Efficiency: The focus on energy efficiency measures and technological

advancements will help reduce petroleum consumption in transportation, such as the
proliferation of electric vehicles and the improvement of fuel efficiency standards for
conventional vehicles.
2. Cleaner Technologies: The petroleum industry is actively investing in cleaner
technologies such as carbon capture, utilization, and storage (CCUS) to mitigate
carbon emissions. These technologies aim to capture and store carbon dioxide
generated from fossil fuel combustion, reducing the environmental impact of
petroleum consumption.
3. Petrochemical Industry: The demand for petrochemicals, derived from petroleum, is
expected to increase due to their crucial role in various sectors like plastics,
 construction, and manufacturing. As the global population and middle class continue
to grow, the demand for petrochemical products is likely to rise, providing a
continued market for petroleum-derived products.

Renewable Energy Sector: Renewable energy sources are experiencing significant growth and
are expected to play an increasingly prominent role in the future energy landscape. Key factors
shaping the future of the renewable energy sector include:

1. Falling Costs: The cost of renewable energy technologies, such as solar and wind, has
been declining rapidly, making them more competitive with conventional energy
sources. As costs continue to decrease, renewable energy will become increasingly
economically viable and attractive for widespread adoption.
2. Government Policies and Targets: Governments worldwide are setting ambitious
renewable energy targets and implementing supportive policies to encourage the
transition towards clean energy sources. These policies include feed-in tariffs, tax
incentives, and renewable portfolio standards, which stimulate investment and
deployment of renewable energy projects.
3. Technological Advancements: Ongoing research and development efforts are driving
technological advancements in renewable energy, such as improved solar cell
efficiency, energy storage solutions, and advanced wind turbine designs. These
innovations will enhance the reliability and scalability of renewable energy systems,
making them more viable for large-scale deployment.
4. Energy Transition Imperatives: The need to combat climate change, reduce
greenhouse gas emissions, and enhance energy security are driving the accelerated
adoption of renewable energy. As societies recognize the environmental and
economic benefits of clean energy, there is a growing societal push for the transition
away from fossil fuels towards renewable sources.

It is important to note that the future of the energy sector will likely involve a combination of
petroleum and renewable energy sources, with an increasing emphasis on renewable energy as
sustainability becomes a paramount concern. The transition towards a sustainable energy
future requires collaboration between governments, industries, and individuals to support and
invest in renewable energy technologies, while also ensuring the responsible use and
management of petroleum resources.