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Course Introduction to Petroleum Engineering Introduction to Petroleum Engineering Chapter An Introduction to Petroleum Engineering Introduction to Petroleum Engineering Contents Definitions and terminology A brief history of petroleum industry Vietnam’s petroleum industry The role of petroleum industry The field life cycle Introduction to Petroleum Engineering Learning outcomes Understand the basic definitions and terminology in petroleum industry Know the history of petroleum industry List the historical events of Vietnam’s petroleum industry Evaluate the important role of petroleum industry in modern life Differentiate the phases of field life cycle and it’s characterization Introduction to Petroleum Engineering Definitions and terminology hydrocarbon: A naturally occurring organic compound comprising hydrogen and carbon Hydrocarbons can be as simple as methane [CH4], but many are highly complex molecules, and can occur as gases, liquids or solids The molecules can have the shape of chains, branching chains, rings or other structures Petroleum is a complex mixture of hydrocarbons The most common hydrocarbons are natural gas, oil and coal Introduction to Petroleum Engineering Definitions and terminology crude oil: Crude oil is an organic liquid substance often found below the Earth’s surface It is made up of thousands of molecules composed of different hydrogen and carbon atoms Such compounds are called hydrocarbons These hydrocarbons also contain different proportions of impurities like oxygen, sulphur, nitrogen and heavy metal atoms Introduction to Petroleum Engineering Definitions and terminology petroleum: The word ‘petroleum’ is derived from the Latin petra (which means rock) and oleum (which means oil) It is commonly used to refer to crude oil, but it may also refer to other related hydrocarbons Some hydrocarbons are gaseous, rather than liquid Methane is the most common example of these hydrocarbon gases This is the kind of natural gas that we most often use in our kitchens at home Introduction to Petroleum Engineering Definitions and terminology Introduction to Petroleum Engineering Definitions and terminology stock tank barrel: A measure of the volume of treated oil stored in stock tanks A stock tank barrel is commonly abbreviated as STB Barrel [US, Oil] = 158.987295 Liters Barrel [Oil] = 42 Gallons [US, Oil] Introduction to Petroleum Engineering Definitions and terminology Introduction to Petroleum Engineering 10 The role of petroleum industry Introduction to Petroleum Engineering 30 The role of petroleum industry Introduction to Petroleum Engineering 31 The field life cycle Gaining Access Phase Exploration Phase Appraisal Phase Development Planning Production Phase Decommissioning Introduction to Petroleum Engineering 32 The field life cycle Introduction to Petroleum Engineering 33 Gaining Access Phase Decide what regions of the world are of interest Evaluating the technical, political, economic, social and environmental aspects of regions under consideration Some 90% of the world’s oil and gas reserves are owned and operated by National Oil Companies (NOCs), such as Saudi Aramco (Saudi Arabia), Petronas (Malaysia), Pemex (Mexico) Introduction to Petroleum Engineering 34 Exploration Phase Despite such improvements, exploration remains a high-risk activity Traditionally, investments in exploration are made many years before there is any opportunity of producing the oil Introduction to Petroleum Engineering 35 Exploration Phase Introduction to Petroleum Engineering 36 Appraisal Phase Once an exploration well has encountered hydrocarbons, considerable effort will still be required to accurately assess the potential of the find The amount of data acquired so far does not yet provide a precise picture of the size, shape and producibility of the accumulation In the second case, the purpose of appraisal is therefore to reduce the uncertainties Having defined and gathered data adequate for an initial reserves estimation, the next step is to look at the various options to develop the field The objective of the feasibility study is to document various technical options, of which at least one should be economically viable Introduction to Petroleum Engineering 37 Development Planning Based on the results of the feasibility study, and assuming that at least one option is economically viable, a field development plan (FDP) can now be formulated and subsequently executed Introduction to Petroleum Engineering 38 Development Planning The FDP’s prime purpose is to serve as a conceptual project specification for subsurface and surface facilities, and the operational and maintenance philosophy required to support a proposal for the required investments In particular, it should include • objectives of the development • petroleum engineering data • operating and maintenance principles • description of engineering facilities • cost and manpower estimates • project planning • summary of project economics • budget proposal Introduction to Petroleum Engineering 39 Production Phase The production phase commences with the first commercial quantities of hydrocarbons (first oil) flowing through the wellhead Development planning and production are usually based on the expected production profile which depends strongly on the mechanism providing the driving force in the reservoir The production profile will determine the facilities required and the number and phasing of wells to be drilled The production profile is characterised by three phases: Introduction to Petroleum Engineering 40 Production Phase Build-up period Plateau period Decline period During this period newly drilled producers are progressively brought on stream Initially new wells may still be brought on stream but the older wells start to decline Production facilities are running at full capacity, and a constant production rate is maintained This period is typically 2–5 years for an oil field, but longer for a gas field During this final (and usually longest) period, all producers will exhibit declining production Introduction to Petroleum Engineering 41 Decommissioning The economic lifetime of a project normally terminates once its net cash flow turns permanently negative, at which moment the field is decommissioned Most companies have at least two ways in which to defer the decommissioning of a field or installation: (a) reduce the operating costs, or (b) increase hydrocarbon throughput Introduction to Petroleum Engineering 42 Summary Petroleum is a complex mixture of hydrocarbons Crude oil can be classified as either light or heavy depending on its API gravity Crude oil can also be classified as either sour or sweet, depending on the amount of sulphur it contains Drake Well is the birth of petroleum industry The White Tiger oilfield is a major oil field of Vietnam Crude oil is a central part of modern life and the world’s most important energy resource Each activity in field development is driven by a business need related to that particular phase Introduction to Petroleum Engineering 43 Chapter The End Introduction to Petroleum Engineering 44 ... of petroleum industry Introduction to Petroleum Engineering 28 The role of petroleum industry Introduction to Petroleum Engineering 29 The role of petroleum industry Introduction to Petroleum Engineering. .. America Introduction to Petroleum Engineering 17 A brief history of petroleum industry Drake Well Museum Introduction to Petroleum Engineering 18 A brief history of petroleum industry Introduction to. .. hydrogen and is more timeconsuming to produce and hard to refine Introduction to Petroleum Engineering 12 Definitions and terminology Introduction to Petroleum Engineering 13 Definitions and terminology
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