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Logistics in Petroleum Engineering

Preprared by Gerhard Thonhauser 1


Slide 1
Introduction to
Petroleum Engineering
Gerhard Thonhauser
Logistics in Petroleum Engineering
Preprared by Gerhard Thonhauser 2
Slide 2
Role of Hydrocarbons
Hydrocarbons are currently the most important source
of energy in the world
Limited Resource
E&P Business is a true global industry
Technological challenges have to be met
Logistics in Petroleum Engineering
Preprared by Gerhard Thonhauser 3
Slide 3
World Map of Sedimentary Basins
Logistics in Petroleum Engineering
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Slide 4
Reserves
Reserve classification
Proved reserves
Proved developed/undeveloped reserves
Probably reserves
Possible reserves
Oil price dependent
Logistics in Petroleum Engineering
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Slide 5
Reservedefinition 1
Proved HC Reserves are the estimated quantities, as
at a specific date, which analysis of geological and
engineering data demonstrate, with reasonable
certainty, to be recoverable in the future from known
reservoirs under the existing economic and operational
conditions.
Proved Developed Reserves are those Proved
Reserves that can be expected to be recovered
through existing wells and facilities and by existing
operating methods.
Proved Undeveloped Reserves are those Proved
Reserves that are expected to be recovered from new
wells or facilities, or from existing wells for which a
relatively major expenditure is required for re-
completion.
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Slide 6
Reservedefinition 2
Unproved Reserves
Probable Reserves are the estimated quantities
of crude oil, natural gas and NGL which might be
economically recoverable in the future with a
reasonable high degree of probability, which
suggests the likelihood of their existence, but not
sufficient to be classified as proved.
Possible Reserves are the estimated quantities of
crude oil, natural gas and NGL which might be
economically recoverable in the future with only a
moderate degree of probability, which suggests the
likelihood of their existence, but not sufficient to be
classified as probable.
Logistics in Petroleum Engineering
Preprared by Gerhard Thonhauser 7
Slide 7
Development of Reserves
Reserves are a funtion of oil price and available
technology
85 - 90 % of reserves in existing fields
10 15 % exploration and discovery of newfields
Giant discoveries are the exeption
Exploration in the deep water off-shore area
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Preprared by Gerhard Thonhauser 8
Slide 8
Reserve Distribution
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Slide 9
Reserves are like Fish
PROVED DEVELOPED: The fish is in your boat. You
have weighed him. You can smell him and you will eat
him.
PROVED UNDEVELOPED: The fish is on your hook in
the water by the boat and you are ready to net him.
You can tell how big he looks (they always look bigger
in the water).
Logistics in Petroleum Engineering
Preprared by Gerhard Thonhauser 10
Slide 10
Reserves are like Fish
PROBABLE: There are fish in the lake. You may have
caught some yesterday. You may even be able to see
them, but you have not caught any today.
POSSIBLE: There is water in the lake. Someone has
told you there are fish in the lake. You have your boat
on the trailer but you may go play golf instead.
Logistics in Petroleum Engineering
Preprared by Gerhard Thonhauser 11
Slide 11
So that is Reserves
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Slide 12
Reserve Estimates
Different Interpretations of a Hypothetical 6,000 Billion Barrel
World Original Oil-in-Place Resource Base
800 800
1,200
600
1,200
4,000
3,400
0
1.000
2.000
3.000
4.000
5.000
6.000
1 2
Cumulative Production Proved Reserves Unrecoverable
Recovery
Factor
43%
Recovery
Factor
33%
Source: EnergyInformation Administration
Schoeller-Bleckmann Oilfield Equipment AG
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Slide 13
Local Reserve Distribution - Oil
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Slide 14
Proven Oil Reserves End 2003
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Slide 15
Distribution of Proven Oil Reserves
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Slide 16
Proven Reserves Natural Gas
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Slide 17
Distribution of Proven Reserves End 2003
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Slide 18
Crude Oil Prices sind 1861
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Slide 19
Logistics in Petroleum Engineering
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Slide 20
Resource Triangle
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Slide 21
Structure of the Oil Industry
Upstream
Exploration
Drilling
Production
Downstream
Refineries
Delivery to consumers (gas stations)
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Slide 22
Life Cycle of A Field
Finding Drilling Producing Hydrocarbons
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Slide 23
Where do Hydrocarbons come from?
Organic material in the
hydrocarbon cycle
0.1 % of those hydrocarbons
sediment
Without Oxygen and with
temperatures around 50 C
Kerogen is produced
Under pressure (~2000 m)
and higher temperatures
hydrocarbons are formed
70 C Oil
200 C Gas
>300 C no hydrocarbons
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Slide 24
Migration
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Slide 25
Geophysics
Searching for structures using
Gravimetric
Magnetic
Seismic
Formation and reservoir description using
Geophysical well logs
Cores
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Slide 26
Finding Potential Reservoirs
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Slide 27
Drilling a Well
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Slide 28
Completed Well
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Slide 29
Field Development
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