NATURAL GAS

ENGINEERING
PETR5350/6350
S.M. Farouq Ali
University of Houston

Fall 2021
99,000 gas wells. Total
prod 19.7Bcf/day.
SMFarouqAli-Aug25,2021 1
• YEAR COURSE OFFERED: 2021
• SEMESTER COURSE OFFERED: Fall
• DEPARTMENT: Petroleum Engineering Dept
• COURSE NUMBER: PETR 5350/6350
• NAME OF COURSE: Natural Gas Engineering
• NAME OF INSTRUCTOR: Dr. S.M. Farouq Ali
• LECTURES: Thu, 5:30-8:30 pm
• OFFICE HOURS: Tue, Wed 2:00-4:00 pm (via
email)
SMFarouqAli-Aug25,2021 2
 SYLLABUS
1. Natural gas – general properties, occurrence, production, consumption, price,
comparison with oil; value chain. Impact of shale gas. Natural gas products. Place
of gas in the energy picture
2. Natural gas properties, composition (variation), comparison with associated gas.
Properties; gas equation, phase behavior.
3. Natural gas reservoirs. Gas reservoir behavior – MBE. Gas in place
determination. Water drive reservoirs. Decline curves.
4. Flow of gas in a porous medium. Various flow casesSolution methods. Numerical
approach. Non-Darcy flow. Relative permeability. Multiphase gas flow.
5. Gas pipelines – flow of gas in a pipe. Effect of liquid.
6. Shale gas – production, horizontal wells, fracking, re-fracking. Impact on supply,
7. Gas wells – design, production, testing.
8. Gas hydrates – problems and energy source.
9. CO2 properties, comparison with natural gas, gas equation, reservoir development.
CO2 flooding, MMP, and other concepts.
10.Gas commercialization, trading, and other concepts.

SMFarouqAli-Aug25,2021 3
 Major Assignments/Exams and Grading
Policy
• Grading percentages for PETR 5350:
Homework 15%, Exam 1 20%, Exam 2 20%,
Final Exam (comprehensive) 40%
 
• Grading percentages for PETR 6350:
Homework 20%, Exam 1 15%, Exam 2 15%,
Final Exam (comprehensive) 35%, PROJECT
15%

SMFarouqAli-Aug25,2021 4
 Webcams
Access to a webcam is required for
students participating remotely in this
course. Webcams must be turned on during
exams to ensure the academic integrity of
exam administration.

SMFarouqAli-Aug25,2021 5
SMFarouqAli-Aug25,2021 6
 PROJECTS FOR PETR 6350
About the third week

• Related to gas reservoir

• Related to production
• Related to pipelining
• GTL
• Methanol vs LNG
• Gas utilization
• Shale gas
• Marketing
SMFarouqAli-Aug25,2021 7
 Learning Objectives

• Detailed understanding of upstream concepts for

gas reservoirs, as well as a basic understanding
of the full natural gas value chain.
• Gain sufficient knowledge to solve engineering
problems related to gas reservoir fluids, gas
reservoir characterization, and natural gas
production.
• Demonstrate the ability to assess natural gas
well and reservoir performance
SMFarouqAli-Aug25,2021 8
 ENGINEERING ETHICS
• Important distinction, between morality and professional ethics.
• Morality applies to everyone
• Engineering Ethics applies to engineers and part of teaching engineering
• Why do we teach Engineering Ethics
• The long and familiar list of tragedies, disasters, and scandals in which
engineers have been major players
• Chernobyl accident, on 25–26 April 1986
• Bhopal tragedy 2–3 December 1984
• Tacoma-Narrows bridge, Nov 7, 1940
• Charles De Gaulle airport, May 3, 2004
• Deepwater Horizon, April 20, 2010
• How do we teach ethics
• Through case studies

SMFarouqAli-Jan 22, 2021 9

 ENGINEERING ETHICS
https://youtu.be/5KZx81crb48

• Safety – the single most important concern. When

and where to draw the line: what safety factor to
use? (many government agencies involved)
• Opinions – Some disagreement and uncertainty
are expected and should be tolerated (e.g. safety
factor vs. cost)
• Ethical responsibility should be taken very
seriously

SMFarouqAli-Jan 22, 2021 10

 ENGINEERING ETHICS CASES
• Gifts from a vendor
• Average ballpoint pen versus A Rolex watch
• Where to draw the line?
• Invitation to a Seminar
• One-hour webinar training on the vendor’s product
• All paid expense a seminar in Hawaii
• Fishing/hunting trip
• Adjusting the numbers

SMFarouqAli-Jan 22, 2021 11

 ENGINEERING ETHICS CASES
• Gilbane Gold https://youtu.be/cb0wXGkFl-8
• Many points of view
• Gilbane gold – Watch the video
• Conflict of interest
Gilbane Gold is the name given to dried sludge from the city of Gilbane wastewater treatment
plant. It is sold to farmers as a commercial fertilizer. The annual revenue generated saves the
average family about $300 per year in taxes. Z CORP, a computer components manufacturer,
discharges wastewater containing small amounts of lead and arsenic into the city sewers. By
current city test standards, the discharge meets allowable levels. Z CORP environmental
engineers know of a newer test which shows that the discharge may still meet the letter of the
law, but the test exceeds the spirit of the law. Protection of the health, safety, and welfare of
the public is a concern.
• Working in a foreign country

SMFarouqAli-Jan 22, 2021 12

 ENGINEERING ETHICS
• PE organization
• FE exam Fundamentals
• PE exam Principles and Practice

SMFarouqAli-Jan 22, 2021 13

 Each square equals 32 billion barrels, one year’s oil consumption of the world.
WORLD OIL RESERVES
Total ~ 1500 billion barrels
Saudi Arabia (264) Canada (175)

Venezuela (291) Iran (151)

Iraq (143) UAE (98)

Russia
(74)
China
Kazakstan
Kuwait (102) (30) USA
(19) Brazil

Libya Nigeria Other

SMFarouqAli-Aug25,2021 14
 OIL & GAS IN TEXAS
Texas production (2019)
5.4 MM Bbls of oil per day
35 Bcf/d of gas
187,400 active oil wells
98,700 active gas wells

Texas oil & gas reserves

Oil reserves 46 billion Bbls
Gas reserves 280 TCF
Liquid reserves 20 billion Bbls

William A. Ambrose, UT, Bureau of Economic Geology

TEXAS
TEXAS

SMFarouqAli-Jan 22, 2021 15

 SHALE OIL AND GAS IN U.S.A.

SMFarouqAli-Jan 22, 2021 16

 COALBED METHANE IN U.S.A.

SMFarouqAli-Jan 22, 2021 17

 TIGHT GAS IN U.S.A.

SMFarouqAli-Jan 22, 2021 18

 OIL PRODUCTION GAIN AND LOSS

SMFarouqAli-Aug25,2021 19
 PROVEN OIL AND GAS RESERVES OF
U.S.A.

SMFarouqAli-Aug25,2021 20
 GAS RESERVES
Russia 1680 trillion cubic feet*
Iran 812
Qatar 1000(?)
Saudi Arabia 224
Shale gas and shale oil
U.S.A. 450 potential is enormous in many
countries
Venezuela 148
Canada 60
*One trillion = 1012

0 0 tr il li o n c u f t in o ne year.
World consumes 1
SMFarouqAli-Aug25,2021 21
 DIFFICULT HYDRCARBONS
• Oil (tar) sands (Alberta) Resource: 1670 billion bbls
– API gravity 8-9°
– Viscosity Several million cp
– Reservoir temp 12°C (55 F)
– Initial injectivity ~zero
– Relatively shallow 200-500 m (600-1500 ft)
• Extra-heavy oil (Venezuela) Resource: 2000 billion bbls
• Oil shale (U.S.A.) Resource: 1800 billion bbls
– Zero permeability
– 4-5% porosity
– Hydrocarbon is kerogen

SMFarouqAli-Aug25,2021 22
 OTHER ENERGY RESOURCES
• Coal Becoming increasingly important
• Oil shale Some chance of being commercially viable
• Nuclear Small, may increase
Total
• Wind Very small, will increase contribution is
• Solar Very small, will increase < 5% of world
energy
• Biomass Small, may increase consumption

• Hydroelectric More or less maximum now

• Geothermal Small, limited
• Other Gas hydrates
t io n w ill b e 3 ti mes
20 6 0 , ene r g y c onsump r om?
In e w il l i t co m e f
o f t he p r es e n t – wher
SMFarouqAli-Aug25,2021
that 23
 USEFUL CONVERSION FACTORS
• 1 tonne of oil = 2200 lb = 6.29 barrels
• 1 B/D = 58 tonnes/year
• Btu in 1 Mcf of gas = 1.0 million
• Btu in 1 barrel of oil = 6.3 million
• Thus 1 barrel of oil = 6.3 Mcf of gas
• Btu in 1 tonne of coal = 26.4 million
• Thus 1 tonne of coal = 4.2 barrels of oil
• U.S. Coal reserves = 433 billion tonnes
= 1,820 billion barrels
Above is based on a specific gravity of oil = 1, calorific value 18,000 Btu/lb, and
calorific value of coal of 12,000 Btu/lb. Thermal efficiency of conversion is taken as 100%.
SMFarouqAli-Aug25,2021 24
WORLD ENERGY USE BY THE SOURCE
(Equivalent kilotons of oil)

15 000 000 000 tonnes oil equivalent = 94 billion barrels per year = 260 million barrels per day

SMFarouqAli-Aug25,2021 25
 SHARE OF ENERGY CONSUMPTION

BP Statistical Review of World Energy, 2018.

SMFarouqAli-Aug25,2021 26
 COST (OPEX) OF PRODUCING
ONE BARREL OF OIL
• California: heavy oil $30 (all US$)
• Canada: Cold Lake heavy oil $30
• Canada: SAGD $40 (?)
• Canada: Surface Mined Oil Sd $25
• North Sea: light oil $5-15
• Venezuela: heavy oil $8
• Middle East: light oil $2
• Shale oil (Colorado oil shale) $150+
• Oil from coal $150+
ing in c re a s
a r e
All costs ce
p ri
SMFarouqAli-Aug25,2021
with oil 27
WORLD OIL, GAS, LNG PRICES
$ per million Btu

US Energy Informtion Administration, 2016.

SMFarouqAli-Aug25,2021 28
 2012 Cost of Producing Oil – Oil Cost by Country and Type

SMFarouqAli-Aug25,2021 29
 NATURAL GAS OCCURRENCES
Also many trillions of cu ft of frozen methane in the Gulf of Mexico

SMFarouqAli-Aug25,2021 30
 NATURAL GAS RESERVES

SMFarouqAli-Aug25,2021 31
 U.S. GAS RESERVES

SMFarouqAli-Aug25,2021 32
 NATURAL GAS PRODUCTION
Trillion cu ft

SMFarouqAli-Aug25,2021 33
 ANNUAL GAS PRODUCTION

SMFarouqAli-Aug25,2021 34
 ANNUAL GAS PRODUCTION

SMFarouqAli-Aug25,2021 35
 ENERGY CONSUMPTION IN TEXAS

Source: EIA
SMFarouqAli-Aug25,2021 36
 UNCONVENTIONAL GAS PRODUCTION IN THE WORLD
U.S.A. produces 85% of the total global.

SMFarouqAli-Aug25,2021 37
 RESERVOIR FLUIDS

Craft, Hawkins, and Terry: Applied Petroleum Reservoir Engineering, 1990.

SMFarouqAli-Aug25,2021 38
 OCCURRENCE OF OIL, GAS, AND GAS
CONDENSATE IN SW LOUISIANA

SMFarouqAli-Aug25,2021 Craft, Hawkins, and Terry: Applied Petroleum Reservoir Engineering, 1990. 39
 VALUE CHAIN OF NATURAL GAS

SMFarouqAli-Aug25,2021 40
 FLARING OF NATURAL GAS

42 billion cu ft/year in Texas

SMFarouqAli-Aug25,2021 41
SMFarouqAli-Aug25,2021 42