Introduction to Petroleum Industry

Structured around major Structured around major activities:activities:

Up Stream:Up Stream:1.1. ExplorationExploration2.2. DrillingDrilling3.3. ProductionProduction4.4. ReservoirReservoir

Down Stream:Down Stream:1.1. TransportationTransportation2.2. RefiningRefining3.3. PetrochemicalsPetrochemicals4.4. MarketingMarketing

Division of work may change: time, Division of work may change: time, location, size, policies, lawslocation, size, policies, laws

Structured around major Structured around major activities:activities:

Traits of Oil and Gas Traits of Oil and Gas industryindustry

1.1. Require large investmentsRequire large investments2.2. Entail high technical and political risksEntail high technical and political risks3.3. Products are exhaustible: no recyclingProducts are exhaustible: no recycling4.4. Has a great influence of foreign societies Has a great influence of foreign societies 5.5. Has major international companies and Has major international companies and

many local or international independentsmany local or international independents6.6. Deal with strategic commoditiesDeal with strategic commodities7.7. Heavily use high technologyHeavily use high technology

Weight of the ME in World’s Weight of the ME in World’s EnergyEnergy

1.1. Share of production in 30% ( 22 MMBShare of production in 30% ( 22 MMB//D D ))

2.2. Low regional consumptionLow regional consumption3.3. Big share of reserves: oil 65% , Gas 30%Big share of reserves: oil 65% , Gas 30%4.4. Low production costLow production cost5.5. Strategic locationStrategic location6.6. Surplus refined products ( 23% from Surplus refined products ( 23% from

their production )their production )

The Future : Weight of The Future : Weight of MEME

1.1. World will still depend on oil and World will still depend on oil and gasgas

2.2. ME lead will continueME lead will continue3.3. Major reserves will remain in the Major reserves will remain in the

MEME

Main Market of Middle Main Market of Middle East OilEast Oil

AreaArea % of Imports% of ImportsUSAUSA 2121

OECD , EuropeOECD , Europe 43.243.2

JapanJapan 6464Eastern AsiaEastern Asia 8080

Major ME exporters of Major ME exporters of LNGLNG

AreaArea Million tons Million tons // yearyear

QatarQatar 4040AlgeriaAlgeria 14.714.7

IranIran 55Abu DhabiAbu Dhabi 3.43.4

The ME will Enjoy its central position for The ME will Enjoy its central position for the years to come .the years to come .

MagmaMagma

IgneousIgneous

RocksRocks

SedimentsSediments

MetamorphicMetamorphic

RocksRocks

SedimentarySedimentaryRocksRocks

The Rock Cycle

Cooling

Erosion

Erosion

Erosion

Pressure & cementation

Heat & pressure

Heat

مصيدة متكونة نتيجة لقبة مصيدة متكونة نتيجة لقبة ملحية خارقةملحية خارقة

مصيدة تركيبة: أثر مصيدة تركيبة: أثر الفوالق على انفصال الفوالق على انفصال

تجمعات النفط في مصايد تجمعات النفط في مصايد منفصلة من الكتلة منفصلة من الكتلة

المتصدعة .المتصدعة .

Origin of PetroleumOrigin of Petroleum• Oil is a fossil fuel that is formed from the Oil is a fossil fuel that is formed from the

remains of tiny plants and animals, remains of tiny plants and animals, known as plankton that died in ancient known as plankton that died in ancient seas between 10 million and 600 million seas between 10 million and 600 million years ago. years ago.

• The plankton fell to the bottom of the sea The plankton fell to the bottom of the sea and after decaying, the organisms formed and after decaying, the organisms formed sedimentary layers. sedimentary layers.

• In the layers, little or no oxygen is In the layers, little or no oxygen is present and this allows microorganisms present and this allows microorganisms to break down the remains into carbon-to break down the remains into carbon-rich compounds that form organic layers. rich compounds that form organic layers.

Origin of PetroleumOrigin of Petroleum

• The organic material mix with the The organic material mix with the sediments to form fine-grained sediments to form fine-grained shale, or source rock. shale, or source rock.

• As the sedimentary rocks layer, As the sedimentary rocks layer, they exert extreme heat and they exert extreme heat and pressure to distill the organic pressure to distill the organic material into crude oil and natural material into crude oil and natural gas. gas.

Migration of PetroleumMigration of Petroleum

• The oil then flows from the source rock The oil then flows from the source rock and accumulates in thicker, more porous and accumulates in thicker, more porous limestone or sandstone known as limestone or sandstone known as reservoir rock. reservoir rock.

• When the earth moves the oil and natural When the earth moves the oil and natural gas is trapped in reservoir rocks, which gas is trapped in reservoir rocks, which are between layers of impermeable rock, are between layers of impermeable rock, or cap rock– usually granite or marble. or cap rock– usually granite or marble.

• The whole process takes millions of The whole process takes millions of years. years.

Geophysical Prospecting Geophysical Prospecting MethodsMethods

1) Magnetic Surveying :1) Magnetic Surveying :

Where :Where : F - F - magnetic Force.magnetic Force.A – A – constant generally unity.constant generally unity.MM11 & M & M2 2 – strength of the respective poles.– strength of the respective poles.r – r – distance between poles.distance between poles.

M1 M2

r2F = F = aa

2) Gravity Surveying :2) Gravity Surveying :

Where :Where : F – Gravitational force F – Gravitational force between two between two point point masses Mmasses M11 & M & M2 2

d – Distance between Md – Distance between M11 & & MM22

G – Gravitational constant G – Gravitational constant ( 6.67 × 10 m ( 6.67 × 10 m // kg S kg S

))

M1 M2

d2

-11 3 2

F = GF = G

3) Seismic Surveying3) Seismic Surveying . .

3) Seismic Surveying 3) Seismic Surveying • Oil geologists examine surface features, Oil geologists examine surface features,

surface rock, reservoir rock, entrapment, surface rock, reservoir rock, entrapment, satellite images, sensitive gravity meters satellite images, sensitive gravity meters and manometers. and manometers.

• The most common technique for finding The most common technique for finding reserves is seismology which uses shock reserves is seismology which uses shock waves that interpret waves reflected waves that interpret waves reflected back to the surface.back to the surface.

• Despite all the technologies, modern oil Despite all the technologies, modern oil exploration methods are only 10 percent exploration methods are only 10 percent successful.successful.

4) Remote Sensing:4) Remote Sensing:• Collection of data without the actual Collection of data without the actual

contact of the object . contact of the object . ( aeromagnetic & gravity ) .( aeromagnetic & gravity ) .

• Useful for topographic mapping Useful for topographic mapping specially in desert areasspecially in desert areas

• When used in conjunction with other When used in conjunction with other techniques such as gravity & techniques such as gravity & magnetic , it may delineate magnetic , it may delineate anomalies that deserve further anomalies that deserve further attention on the groundattention on the ground

• The Government and Oil The Government and Oil companies usually assign finding companies usually assign finding oil to contracted geologists.oil to contracted geologists.