BEng (Hons) Petroleum Engineering

Course: Introduction To Petroleum Engineering Instructor Dr. Tarek Darwich

Introduction to Petroleum Engineering

Course Outlines:
What is Petroleum Engineering? The Life Cycle of Oil and Gas projects, Origin, formation and accumulation of Petroleum, Oil & Gas Exploration, Appraisal of Oil & Gas Discoveries, Development of Oil & Gas Discoveries, Producing Oil & Gas Fields, Transportation of Oil & Gas, The Petroleum Industry & the Environment, Petroleum Economics.
Year 2012 - 2013

Introduction to Petroleum Engineering

Instructor: Dr. Tarek Darwich

BSc, MSc (Cairo University) and PhD & DIC (Imperial College) all in Petroleum Engineering.
Part-time Lecturer at the University of Portsmouth Petroleum Engineering Manager at New African Global Energy (NewAge) Industrial Experience with: Sasol, Gaz de France, Noble Energy, ENAP/SIPETROL, Qatar Petroleum, W S Atkins & various consultancy roles. Academic Experience with University & Cairo university. Imperial College, Kuwait

Year 2012 - 2013

Introduction to Petroleum Engineering

What does Petroleum Mean?

Petroleum means Rock Oil. The word comes from the Greek word Petra meaning Rock and the Latin word Oleum meaning oil.
Crude Oil is a mixture of hydrocarbons that exist in liquid phase in underground reservoirs and remains liquid at atmospheric pressures. Natural Gas is a mixture of hydrocarbon compounds and some non-hydrocarbons that exist either in gaseous phase or in solution with oil in underground reservoirs. Petroleum products (e.g. gasoline, Kerosene, .) are all the substances made of Petroleum.

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Introduction to Petroleum Engineering

What is Petroleum Engineering?

An engineering discipline concerned with the activities (mainly subsurface) related to the production of hydrocarbon (crude oil and natural gas).
It is the application of all types of engineering to the drilling and production of oil & gas It is considered mainly to be associated UPSTREAM sector of the oil & gas industry. with the

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Introduction to Petroleum Engineering Surface & Subsurface Hydrocarbon Activities

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Introduction to Petroleum Engineering Surface & Subsurface Hydrocarbon Activities

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Introduction to Petroleum Engineering Upstream, Midstream & Downstream in the Oil Business

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Introduction to Petroleum Engineering

The Upstream of the Oil & Gas Industry

Also called E & P (Exploration & production).
It covers all the activities from the search of oil & gas resources to the field point of sale of the hydrocarbon.

This includes: exploration activities, drilling, production, field processing and field storage of hydrocarbon.
It is the most critical element of the industry as it has the biggest capital expenditures (> US$500 billion/year). It carries a lot of risk related to the huge uncertainties during the exploration phase and hazards during the drilling and production phases.

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Introduction to Petroleum Engineering

There is no agreement on the definition of midstream and downstream activities!! Generally, downstream activities mainly include gas distribution/sale, Petroleum Products distribution & storage and Petroleum products retail. Midstream is the bridge between oil & gas production and the end users. It involves mainly gathering & transportation of natural gas and crude oil. Gas Processing & Oil refining are considered by some as part of the downstream activities and by others as midstream activities. What is an integrated oil company and independent oil company? Give examples? what is an

The Midstream & downstream of the Oil & Gas Industry

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Introduction to Petroleum Engineering

What is the Role of the Petroleum Engineer?

The Petroleum Engineer is involved in nearly all the activities of the Upstream oil and gas industry.
He/She is a crucial member of a team responsible for maximising oil and gas recovery at minimum cost in a safe way and taking care of the environment. (who are the other team members?) The Petroleum Engineer may be a production engineer, a reservoir engineer, a drilling engineer or a process engineer.

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Introduction to Petroleum Engineering

Qualities of Petroleum Engineers?

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Introduction to Petroleum Engineering

Where Can We Find Oil and Gas?

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Introduction to Petroleum Engineering

Where Can We Find Oil and Gas?

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Introduction to Petroleum Engineering

Where Can We Find Oil and Gas?

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Introduction to Petroleum Engineering

The Oil & Gas Industry Worldwide

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Introduction to Petroleum Engineering

The Oil & Gas Industry worldwide

Offshore UK - North Sea

Onshore UK North East Hampshire

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Introduction to Petroleum Engineering

The Oil & Gas Industry worldwide

Onshore Canada - Shale Gas

Onshore PNG
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Introduction to Petroleum Engineering

The Oil & Gas Industry worldwide

A Refinery in Kuwait

Kuwait Pipeline Construction

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects Licence Award

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 1. Exploration Phase

Exploration is the first stage for any company considering drilling in an area.
Since there is no way to be absolutely certain where oil and gas reservoirs are located, companies use technology to pinpoint these potential resources with ever improving accuracy. Exploration operation usually start with geologic evaluation to identify underground structures where oil and/or gas may have accumulated. Understanding the geology of an area is essential to knowing if a petroleum system is present.

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 1. Exploration Phase

Drilling a geological Structures

Seismic Acquisition

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 2. Site Survey

Federal, state, county, tribal and local permits are required to drill for (or produce) oil and gas.
During the permit process, environmental, archaeological, surface and aquifer use issues should all be addressed. Operators are required to adhere to hundreds of regulations, and meet a wide range of standards and requirements before drilling begins.

Right of way (RoW) corridors should be acquired in onshore locations. A ROW authorises the use of specific piece of land for specific facilities for specific period of time.

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 2. Site Survey

Example of drilling permit process

Drilling pad preparation

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 3. Exploration Drilling

Drilling a well is a highly coordinated event usually planned by the operating company and conducted by drilling contractors.
Drilling is costly and therefore optimisation of time is essential.

Continual drilling can provide greater integrity of the wellbore reducing the risk of problems that might occur.
Time required for drilling a well is highly variable depending on the geology of the area, rig capability, depth and size of the hole, supply management, weather conditions, .. Exploration drilling is very risky because of the lack of sufficient information before drilling the wells.

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 3. Exploration Drilling

Onshore Drilling Rig

Offshore Drilling Rig

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 3. Exploration Drilling

Drilling Project Structure

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 4. Appraisal Drilling

The objective of appraisal drilling is to collect more information that help the operator make the decision to go ahead with field development or not.
Also, it is important to collect data that help in efficient development of the field. Less riskier than exploration drilling because of the information collected from the exploration well

Step-in or step-out approach

May involve drilling one or more than one well depending on the size of the oil and gas accumulation.

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 4. Appraisal Drilling

Discovery well

Step-in Appraisal

Appraisal well

Step-Out Appraisal
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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 4. Field Development

The most important and costly decision in the life cycle of the project. All internal and external approvals have to be obtained first.
A Field Development Plan (FDP) document has to be produced detailing the forward plan and showing the project economics. A Final Investment Decision (FID) is to be taken by top management. The two main activities during field development are development drilling and facilities construction.

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Introduction to Petroleum Engineering

The Life Cycle of Oil and Gas Projects 5. Field Production

The time when revenues start coming in
It lasts for tens of years The main objective during this stage is to optimise production and identify any future investment opportunities within the field. Information collected during production is important to revise the FDP and all subsurface models Special attention is given to the environment and the communities

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Introduction to Petroleum Engineering The Life Cycle of Oil and Gas Projects Environmental Impact

It is VERY IMPORTANT to minimise any adverse impact on the environment

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