Oasis
*Note that partners and their percentage interest varied over the lifetime of the various consortia.
Organization of Petroleum Exporting Countries (OPEC)
After WW2, Economic bloom, more demand, Exploration
1960s: Organization of Petroleum Exporting Countries (OPEC), was founded in Baghdad- consists of Iraq, Iran, Saudi Arabia, Kuwait and Venezuela.
Then expanded to include Algeria, Dubai, Ecuador, Gabon, Indonesia, Libya, Nigeria, Qatar and UAE.
The most influential state oil and gas companies based in countries outside (New Seven Sisters) the OPEC (control almost one-third of the world’s oil and gas production)
China National Petroleum Corporation (China)
Gazprom (Russia)
National Iranian Oil Company (Iran)
Petrobras (Brazil)
Petroleos de Venezuela S.A. (Venezuela)
Petronas (Malaysia)
Oil Price Drop 2020
US oil price below zero for first time in history
Russia's refusal to reduce oil production in order to keep prices for oil at moderate level
Impact of the Global Financial Crisis on Crude Oil Price Volatility
Daily Price of West Texas Intermediate (WTI) Crude Oil Market (1970-2015)
Geology in Petroleum Industry
3D seismic surveys
Why Work in the Energy Industry?
Focus of the Petroleum Industry
What drives today’s oil companies?
Energy Resources
World:
Nuclear power: 6%
Hydropower, geothermal, solar, wind: 7%
Natural Gas: 23%
Biomass: 11%
Oil: 32%
Coal: 21%
United States:
Nuclear power: 8%
Hydropower geothermal solar, wind: 4%
Biomass: 4%
Natural Gas: 23%
Oil: 39%
Coal: 22%
What drives today’s oil companies !
Growing Demand for Energy
Worldwide demand for energy will increase steadily out to 2040 and beyond
Projected demand for oil and gas in 2040 is 45% more than it was back in 2014 (1½% per year)
Chart updated in 2014
Industry’s Challenge – Filling the Gap
New = Fields we don’t know exist
Static = HC we know about, but can not produce economically
Probable = Newly found HC that may be economic to produce – need more confirmation wells
There is a huge GAP between projected production from existing fields and what industry needs to produce through 2040
Meeting Energy Demands
We can fill the gap in three ways:
A Fully-Integrated Upstream
How to Get It Out
where, in detail, are the reserves?
what to build (facilities)?
will it be profitable?
Find Oil & Gas ‘Pools’
which regions and basins?
which blocks?
where on the block?
From the Ground, to the Refinery
how to manage the field?
how to deliver the ‘crude’?
Drill Wells - Recover Oil & Gas
Drilling wells is a key activity in the Upstream
Exploration:
Drills wells to discover new HC reserves
Development:
Drills wells to delineate a new field and determine how best to extract the HCs
Production:
Drills wells to drain the field with the goal of maximizing the produced HCs while minimizing the costs
Industry uses technology, primarily reflection seismology, to determine where to drill
A Field’s Life Cycle
Just as a person has a life cycle, from infant to old age, an oil or gas field has a life cycle
Identify an Opportunity
Capture the Opportunity
Make a Discovery
Delineate the Field
Install Facilities
Drain the Field
Abandon the Field
New Ventures, Exploration, Development, Production
ADNOC Evolution
2016: Strengthening the Foundation
Adnoc transformation
Integrated 2030 strategy
Harnessing synergies
2017 - 2018: Building Momentum
Group companies under one ADNOC brand
3.5 MMbd capacity by end 2018
Largest integrated refinery complex in the world announced
Full slate of Onshore & Offshore Concessions awarded
ADNOC Distribution IPO
Adnoc Drilling & BHGE partnership
First-ever block bid round launched
2019 - 2020: Accelerating Growth & Value Creation
4 MMbd capacity by end 2020
Signed $4bn KKR, Blackrock pipeline infrastructure deal
2018 – launch of Abu Dhabi’s first-ever competitive exploration bid round; blocks successfully awarded early 2019
2019 – launch of Abu Dhabi’s second competitive exploration bid round; awards expected to start 2020
Key Enablers:
Partners bringing technology and capabilities
Effective de-risking through appraisals
Detailed subsurface data through ADNOC’s world’s largest combined onshore & offshore seismic survey
ADNOC Oil Production Capacity Increase
2020 target of 4.0 MMbd oil production capacity on-track
Key Enablers for long-term capacity increase
Drilling efficiency & advancement
Integrated Drilling Services
Creating value from smarter and more marginal fields
Maximizing synergies (e.g. Upper and Lower Zakum)
Developing tight & challenging reservoirs
Harnessing artificial islands concept
Effective project management (including smart FEED and procurement strategies)
EOR to effectively manage our maturing fields to ensure sustainability and optimum recovery
News
World's fourth largest: Dubai-Abu Dhabi gas field discovery to boost UAE's economic growth
UAE moves closer to energy self-sufficiency at viable costs with the 'Jebel Ali Project'
UAE makes 80 trillion scf gas discovery in Abu Dhabi and Dubai
UAE's ADNOC to build world's largest petrochem site worth $45bn
Drill Wisely
Wells can be very expensive, some > 250 million, a lot of money even for a major oil company
Well placement and well path can be critical to success
So ….. How can we determine where to drill and predict what we will find BEFORE we start drilling?
This leads to the need for geologists, geophysicists, and other specialists focused on giving us images of the subsurface and then interpreting those images in terms of geology and fluids (oil & gas)
Location of World Petroleum Deposits
Map showing regions of major known oil reserves:
North Slope
North Sea
North America (Texas, Gulf of Mexico)
South America
Europe
Africa
Persian Gulf
Asia
Australia
The Context of Petroleum Geology
Petroleum geology is the application of geology (the study of rocks) to the exploration for and production of oil and gas
Geology itself is based on chemistry, physics and biology
Chemistry: mineralogy, secondary precipitations, organic origins, maturations and maturation
Physics: physical concepts on geophysical explorations, logging, and reservoir characterization
Biology: stratigraphical zonation, paleoenvironments, ecology and biochemistry
ODSN Plate Tectonic Reconstruction Service
Online software for plate tectonic reconstruction
Calculate plate tectonic reconstructions of any age back to 150 My.
Petroleum Geology in Context
Petroleum geology lies within a continuum of disciplines, beginning with geophysics and ending with petroleum engineering, but overlapping both in time and subject matter.
Oil companies exist not only to find oil and gas but, like any business enterprise, to make money.
Thus, every step of the journey, from leasing to drilling, to production, and finally to enhanced recovery, is monitored by accountants and economists
Summary of Evolution of Petroleum Exploration
The role of petroleum Geologist has become more and more skilled and demanding
wandering, Old hat exploration, Creekology
Hunt 1869: The anticlinal theory of oil entrapment
Mid-1920s: Seismic refraction, Gravity and magnatic methods were applied
1927: electric log runsin the wells at France, sonic and radioactive methods followed
1920s: Aerial surveying began
1970s: Advent of Computer resulted in quantum jumb in Geophysics and Geochemistry
1980s: 3D seismic and inhanced of wireline logging
Conditions for a Commercial Oil Accumulation
For a commercial oil accumulation to occur, seven conditions must be fulfilled
There must be an organic-rich source rock to generate the oil and/or gas.
The source rock must have been heated sufficiently to yield its petroleum.
There must be a reservoir to contain the expelled hydrocarbons. This reservoir must have porosity, to contain the oil and/or gas, and permeability, to permit fluid flow.
The reservoir must be sealed by an impermeable cap rock to prevent the upward escape of petroleum to the earth’s surface.
Source, reservoir, and seal must be arranged in such a way as to trap the petroleum.
The timing of trap formation, petroleum generation, and accumulation must be in a favorable sequence.
The accumulation must be preserved or protected from breaching, flushing, aerobic bacteria, thermal degradation, etc. until exploitation.
Geoscience in Exploration & Production
Geophysics – Provides an image of the subsurface and data useful for predicting rock type and the occurrence of petroleum
Regional Geology – Provides an understanding of which areas are productive, why they are productive, and where else we should look
Basin Modeling – Integrates various data to give us quantitative models of the petroleum potential of an area
Structural Geology – Provides an understanding of how the subsurface has been deformed as it bears on HC potential
Geochemistry – Chemistry of petroleum and its sources to characterize the type, history and origin of petroleum
Reservoir Characterization – Describes the flow characteristics and attributes of subsurface reservoirs for enhanced HC recovery
Self-Study Video Resources
Introduction to Petroleum Geology / Career Overview
Overview of of Petroleum Geology
Structural Geology
Structural geology study of the deformation of the surface and subsurface of the Earth and other planetary bodies. This deformation reflects past changes in local and regional stress and strain, and can be used to reconstruct past crustal movements and dynamics.
Sedimentology explores the origin, transport, deposition and diagenetic alterations of the materials that compose sediments and sedimentary rocks.
Stratigraphy investigates how those types of rocks are accumulated and distributed in space and time.
Thrust fault identified from biostratigraphic analysis: repeated strata indicated by the reappearance of zones H4 and I.
Well Production Options
Producing from a thin reservoir through multiple wells – expensive option
Producing from a thin reservoir through a single well – economical option
Sedimentology
Cubic packing: 48% porosity
Rhombohedral packing: 26% porosity
Udden-Wentworth Scale
Boulders
Cobbles
Gravel
Sand
Silt
Clay
Petrography & Organic Geochemistry
Petrography: The systematic description of geological materials (rock and minerals) , their composition, and organization, in hand specimens and thin sections using microscopic
Organic geochemistry which includes the study of organic matter in sediments and its transformation into hydrocarbons, has become another vital part of petroleum geology.
Paleontology
Paleontology: the science of the former life of the Earth, as preserved in fossils
The simplified geologic time scale and its basic subdivisions. Many of the subdivisions are based on the Principle of Faunal Succession, which recognizes that the Earth’s biota has changed through time.