1 introduction to petroleum industry

Unit 1 Introduction to Petroleum IndustryIntroductionFinding oil and natural gas Producing oil and natural gasMoving oil and natural gasUsing oil and natural gas

CNPC SINOPECCNOOC SINOCHEMExxon Shell Texaco Mobile Gulf British Petroleum Elf ENI GroupTotalChevron IntroductionMajor oil companies in the world

APIAmerican Petroleum InstituteSPE Society of Petroleum EngineersAAPG American Association of Petroleum Geologists OPEC (Organization of Petroleum Exporting Countries)Major oil organizationIntroduction

IntroductionThree main components of the industry

Upstream sector: more than 1000 exploration and production companies as well as hundreds of associated business such as seismic and drilling contractors, service rig operators, engineering firms and various scientific, technical, service and supply companies.Midstream sector: oil and gas pipeline systems that connect producing and consuming areas. Other facilities extract sulphur and natural gas liquids,store oil and gas products and transport products by truck, rail or tanker. Downstream sector: refineries, gas distribution utilities, oil product wholesalersservice stations and petrochemical companies. Three main components of the industryIntroduction

IntroductionPetrology Petro- means Petrochemical Petrophysics Petrography Petroliferous

ExplorationProductionTransportationRefiningSalesIntroduction

Finding oil and natural gas (1)Exploration-The search for petroleumA trap(requires three elements:A porous reservoir rock to accumulate the oil and gas typically sandstones(limestones(and dolomites(;An overlying imperable rock to prevent the oil and gas from escaping;A source for the oil and gas typically black waxy shales(.geologist n geophysicist n geochemist n paleontologists n

(1)Exploration-Seismic surveys(Finding oil and natural gas In a seismic survey, the geophysical (contractors crew lays out a line or several lines of sensitive receivers, called geophones or jugs, on the ground. Then explosions or mechanical vibrations are created on the surface. The geophones record the energy reflected back as seismic waves from rock layers at various depths.

oil zone Finding oil and natural gas (2) DrillingDrilling process: A revolving steel bit( at the bottom of a string of pipe grinds( a hole through the rock layers. RigThere are many different types of rigs. The smallest are service rigs mounted on trucks, while the largest are installed on ships or offshore platforms. :sour gas exploration, slanted holes or horizontal drilling.General rule: the bigger the rig, the deeper it can drill.

(2) DrillingFinding oil and natural gas BitDrill rig

Development well ( Production well (Exploration well(Horizontal well(Directional well( Vertical well((2) DrillingFinding oil and natural gas About 75 workers are directly employed in the drilling of one well, although only four to seven may be on duty at the rig at any given time .The actual number can vary considerably, depending on the type of well being drilled.

Producing oil and natural gas (1)Production-Recovering ResourcesAfter drilling has located a reservoir of oil or natural gas, the operating companys production department takes over the task of bringing the resource to the surface.

Petroleum is not produced from underground lakes. Rather, oil and gas are contained in the pores and fractures of certain sedimentary rocks( in the same way that water is held in a sponge. In mature producing areas, recovering more oil and gas from old wells is an important job. Producing oil and natural gas (1)Production-Recovering Resources

(2) Oil Recovery MethodsPrimary recovery(Infill drillingdrilling more wells into the same pool so the oil does not have to travel as far through the rock to reach a wellbore. Directional wells are often used for infill drilling. Producing oil and natural gas

quadr- means quadruplicate quadrilateral quin- means quintuple quintuplicate

Producing oil and natural gas (3)Processing-Making Marketable CommoditiesCrude oil, a mixture of liquid hydrocarbonsMarket-ready natural gas, composed mainly of methane, the simplest hydrocarbon moleculeNatural gas liquids (NGLs), the heavier gaseous hydrocarbons, including ethane, propane and butaneCondensate, liquid hydrocarbons obtained from processing natural gas for market Sulphur, obtained from processing natural gas and transported by truck or train as liquid, pellets or cakes Some processing facilities are basically just settling tanks for removing sand and water, while others are billion-dollar plants treating large volumes of sour gas (or bitumen. Processing facilities separate the raw petroleum into the major products sold by the upstream sector:

Producing oil and natural gas (3)Processing-gas processingThe natural gas purchased by consumers consists almost entirely of methane, the simplest hydrocarbon. In gas reservoir, however, methane is typically found in mixtures with heavier hydrocarbons, such as ethane, propane, butane and pentanes, as well as water vapor, hydrogen sulphide(, which is found in sour gas, carbon dioxide, nitrogen and other gases. Almost all of the substances are removed from the gas stream at processing plants located near producing areas.

Moving oil and natural gas Transportation-Moving and Selling ProductsPipelines fall into four general categories:Gathering lines move raw oil and gas from wellheads to processing plants and transmission facilitiesTrunk lines transport crude oil, natural gas liquids and refined petroleum products to refineries and petrochemical plants, and some trunk lines transport refine products to consumer areasGas transmission systems carry natural gas at high temperature from producing areas to consuming areas Local distribution companies deliver natural gas at low pressure to homes and businesses.Crude oil, gas liquids and refined products are also transported by tanker, barge, railway and truck. Pipelines are the only method used to deliver natural gas today.

Using oil and natural gas (1)Refining and Petrochemicals-Manufacturing MoleculesPetroleum molecules come in a wide variety of sizes and shapes-string and rings of carbon and hydrogen atoms. The methane in natural gas is the simplest and smallest. By comparison, the molecules in paraffin wax and asphalt are complex and enormous. These hydrocarbon molecules are sorted, spilt apart, reassembled and blended at refineries and petrochemical plants. There, they become part of a multitude of products, from gasoline to synthetic rubber.

Using oil and natural gas (2)A Versatile Energy SourceThe petroleum industry exists because people have become accustomed to the benefits oil products and natural gas provides benefits like convenient, affordable transportation ,warm homes and thousands of synthetic materials. The production and use of petroleum have altered the way in which we live. Petroleum and products derived from it show up everywhere in our daily lives.

In the structure itselfIsolation on wiring polyethylene barriersGlues in plywood plastic pipesIn the living roomPlastic electric appliances carpets and floor coveringsGlues and parts in furnitureIn the garage Lubricants and fuel for vehicles plastic garden tools paints Pesticides and fertilizer asphalt driveway pavement plastic components in vehiclesUsing oil and natural gas

In the kitchen and bathroom Plastic containers cleansers and utensilsTiles and countertops pharmaceuticals In the bedroomsSynthetic fibers Glues and parts in furniturePlastics in wall fixtureIn the laundry roomPlastic pipes and fittings Natural gas for dryersUsing oil and natural gas

deposit v withdrawsilt n sediment n sedimentary a hydrocarbon n fossil n exploration n exploitation n seismic n drilling contractor n Rig n Trap n Stretch v extend)

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geologist n geophysicist n geochemist n ethane n propane n butane n condensate n sulphur n asphalt n Polyethylene n polyester n Trap n Sulfa n

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1 introduction to petroleum industry

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