Please . . . .

Follow-up on questions from 2 wks ago…

WHAT IS THE CAUSE OF MOST

COAL MINING ACCIDENTS??

47 coal mining fatalities recorded in 2006: - 43% fires and explosions, - 34% contact with objects and equipment, and - 19% transportation incidents.

Selected Historical Data of Incidents with more than 100 Fatalities, Sorted by Cause

INFORMAL DATA INFORMAL DATA INDICATES INDICATES MOST, MOST,

(17 OF 22),(17 OF 22),HIGH FATALITY HIGH FATALITY INCIDENTS ARE INCIDENTS ARE

CAUSED BY CAUSED BY “EXPLOSIONS“EXPLOSIONS””

Selected Historical Data of Incidents with more than 100 Fatalities, Sorted by CountryCountry

Selected Historical Data of Incidents with more than 100 Fatalities, Sorted by Year

Vagabond Ventures Oil Group

Search For Fossil Search For Fossil FuelsFuels

Spring 2013

Week 1: Geology & History of Fossil FuelsWeek 1: Geology & History of Fossil Fuels Week 2: Oil Exploration Week 2: Oil Exploration Week 3: Petroleum EngineeringWeek 3: Petroleum Engineering

Course Outline

Week 4: ‘Vagabond Group’ proposes 2 prospectsWeek 4: ‘Vagabond Group’ proposes 2 prospects

Your chance to invest !Your chance to invest ! Week 5: ‘Vagabond Group’ plans productionWeek 5: ‘Vagabond Group’ plans production Week 6: Calculating the Payout?!Week 6: Calculating the Payout?!

The Basics:The Basics:

The Adventure:The Adventure:

A black-gold millionaire or dry hole hobo?A black-gold millionaire or dry hole hobo?

By now, you should start to see that deciding-WHAT to drillWHAT to drill

-WHERE to drill &WHERE to drill &- HOW to drillHOW to drill

is a TEAM EFFORTis a TEAM EFFORTComposed ofComposed of

GEOLOGIST, GEOPHYSICIST,GEOLOGIST, GEOPHYSICIST,LANDMEN, & ENGINEERSLANDMEN, & ENGINEERS

Today . . . .Today . . . .

Petroleum EngineerPrimary Jobs:

Reservoir Characterization

Production & Enhancements

Well Design & Drilling

9

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Job #1Job #1

Reservoir CharacterizationReservoir Characterization

10Petroleum Engineer: Reservoir Characterization

“Reservoir characterization methodology:determining reservoir architecture, establishing fluid-flow trends, constructing reservoir model, and identifying reserve growth potential

Further investigations within reservoir type:integrating data: petrophysical, seismic, and geologic attributes 3-D geo-celluar model building; delineating flow units and fluid flow compartments, documenting reserve growth concepts under varying reservoir conditions”

Texas Bureau of Economic Geology

11Petroleum Engineer: Reservoir Characterization

From Seismic Data

12Petroleum Engineer: Reservoir Characterization

Generalized Stratigraphic Map

13Petroleum Engineer: Reservoir Characterization

PETROPHYSICAL & PALEO DATA

14

LithologyWell core

Laboratory Analysis

Paleo Analysis

Petroleum Engineer: Reservoir Characterization

1 millimeter

Gulf of Mexico Pliocene Sandstone

PETROPHYSICAL DATA

15

Laboratory Analysis Porosity – a measure of the open spaces within a rock that can contain oil or water. Unit of measurement is PERCENT

Permeability – a measure of the ability for fluid to flow thru a rock. Unit of measurement is DARCY

Point of Reference:

Concrete Block Brick Porosity

Permeability +/- 20% +/- 5 % 2 – 5 D .025 D (25 mD)

Petroleum Engineer: Reservoir Characterization

PETROPHYSICAL DATA – Rules of Thumb

16

PERMEABILITYmD (milliDarcy) RESERVOIR QUALITY

1 – 10 mD Poor

10 – 100 mD Good

100 – 1000 mD Excellent

Porosity (%) RESERVOIR QUALITY

0 – 5% Insignificant

5 – 10% Poor

10 – 15% Fair

15 – 20% Good

20 – 25% Excellent

Petroleum Engineer: Reservoir Characterization

Correlation of Well Logs(more on logging later…)

17Petroleum Engineer: Reservoir Characterization

Resulting in Reservoir Model

• Reservoir characteristics are input to a program that generates a 3D map of the subsurface reservoir

• The 3D map can then be used to assess where hydrocarbon has migrated to which then indicates where future wells should be drilled

18Petroleum Engineer: Reservoir Characterization

TYPICAL QUESTIONS TO ASK REGARDING TYPICAL QUESTIONS TO ASK REGARDING RESERVOIR CHARACTERIZATIONRESERVOIR CHARACTERIZATION

• What is the source rock? • What type of reservoir rock is expected? • What reservoir porosity is expected?• What reservoir permeability is expected?• What is the expected trapping mechanism?• What type of drive mechanism is expected?• Is the well type a straight hole or deviated?• What is the planned TD (total depth) of the well?• How many feet of pay is expected?• How do characteristics vary between in-field wells?• How many PROVEN reserves are expected to be found?

19

SPEAKING OF “RESERVES”…

Petroleum Engineer: Reservoir Characterization

Classification of Reserves is key!Classification of Reserves is key!What are Reserves?

The amount of oil & gas in a reservoir currently available for production

Why are they important?:Reserves when produced generate a cash flow and by

estimating the total cash flow from a well, the “expected value” of that well can be calculated. This sets the limit on much you can spend in developing

the well for any expected Return on Investment (ROI)!

20Petroleum Engineer: Reserves

Classification of Reserves is key!Classification of Reserves is key!

BUT…There are several different reserves names used:

• Reserves in Place Reserves in Place (physically contained in the reservoir; remember that only 25 to 30% of that can actually be recovered with conventional technologies; OOIP)

• Recoverable Reserves Recoverable Reserves (estimate of what can be produced from the reservoir)

• Proven Reserves, Developed or Undeveloped Proven Reserves, Developed or Undeveloped (reserves that can be calculated with reasonable certainty because the field has been defined by appraisal well(s) that have been tested)

• Proved Behind-Pipe Reserves Proved Behind-Pipe Reserves (undeveloped, proven reserves calculated behind the casing)

• Proved (P90), Probable (P50) and Possible (P10) ReservesProved (P90), Probable (P50) and Possible (P10) Reserves

21Petroleum Engineer: Reserves

Classification of Reserves is key!Classification of Reserves is key!

• Proved (P90) Reserves Proved (P90) Reserves – – 90 % chance or greater that the reserves are there; must have “very high certainty” that reserves can be “economically” recovered with current technology. Security and Exchange Commission (SEC) allows only reporting of P90 as official data.

• Probable (P50) Reserves- Probable (P50) Reserves- 50 % chance that the reserves are there

• Possible (P10) Reserves - Possible (P10) Reserves - 10 % chance that the reserves are there

• Remember estimates are based on data from a location as much as 2 miles below the surface, and on characteristics of a hole 6” in diameter extrapolated over several hundred acres of reservoir…

Reserves estimating is more of an art than a science!

22Petroleum Engineer: Reserves

Another important term…Reserves ReplacementAnother important term…Reserves Replacement

23

You’re going out of Business!!

Petroleum Engineer: Reserves

24

Yeah! You will stay in business!!

Petroleum Engineer: Reserves

Another important term…Reserves ReplacementAnother important term…Reserves Replacement

Petroleum Engineer: Reserves

Note that the world understands that “proved” Note that the world understands that “proved” reserves is what’s important…reserves is what’s important…

25

USA Today

26

Note that the world understands that “proved” Note that the world understands that “proved” reserves is what’s important…reserves is what’s important…

Petroleum Engineer: Reserves

1212thth!!

Petroleum Engineer: Reserves

USA Reserves

Primarily Primarily due to due to Shale?Shale?

9.9X

7.8X

5.6X

Canada Reserves

3,380% 3,380% rise in rise in

1 yr!1 yr!hummm?hummm?

Canada ReservesCanada Reserves

Petroleum Engineer: Reserves

44thth!!

Job #2Well Design and Drilling

29Petroleum Engineer: Well Design & Drilling

Well Design Well Design during drillingduring drilling

``

Blowout Preventer

Surface

Casing Casing StringsStrings

Blowout Preventer – Monitor & Controls the pressure within each casing string of the well

Casing String – Successive sections of pipe of decreasing diameter set one inside the other and cemented in place

30Petroleum Engineer: Well Design

How is Casing Installed?How is Casing Installed?

36”hole36”hole

•Drill 36” hole to design depthDrill 36” hole to design depth

•Slide 30” casing to depth within Slide 30” casing to depth within 36” hole36” hole

•Cement 30” casing to 36” holeCement 30” casing to 36” hole

•Drill 24” hole thru cement in 30” Drill 24” hole thru cement in 30” casing to design depthcasing to design depth

•Slide 20” casing to depth within Slide 20” casing to depth within the 24” holethe 24” hole

•Cement 20” casing to 24” holeCement 20” casing to 24” hole

•And so on ….And so on ….

31

30” 30” CasingCasing

24”hole24”hole

20” 20” CasingCasing

Surface

Petroleum Engineer: Well Design

Typical Well Casing ProgramTypical Well Casing Program

30 in30 in(36”hole)(36”hole)

20 in20 in(26”hole)(26”hole)

13 3/8 in13 3/8 in(17 ½” hole)(17 ½” hole)

9 5/8 in9 5/8 in(12 ½” hole)(12 ½” hole)

500 ft500 ft

7,000 ft7,000 ft

10,000 ft10,000 ft

3,000 ft3,000 ft

7 in Liner7 in Liner(8½” hole)(8½” hole)

15,000 ft15,000 ft

DepthDepthCasing SizeCasing Size

•30” Casing 30” Casing = Conductor Pipe (hung at = Conductor Pipe (hung at surface; it is drilled or driven)surface; it is drilled or driven)

•20” Casing 20” Casing = Surface Casing (hung at = Surface Casing (hung at surface; may not be necessary, surface; may not be necessary, depends on geology)depends on geology)

•13 3/8” Casing 13 3/8” Casing = Intermediate Casing = Intermediate Casing (hung at the surface)(hung at the surface)

•9 5/8” Casing 9 5/8” Casing = Intermediate casing = Intermediate casing (depending on design, could be hung (depending on design, could be hung off of 13 3/8”)off of 13 3/8”)

•7” Liner 7” Liner = Not a casing per se because = Not a casing per se because it is hung off the end of the 9 5/8” it is hung off the end of the 9 5/8” casing; it doesn’t run to the surfacecasing; it doesn’t run to the surface

32Petroleum Engineer: Well Design

Well Casing ProgramWell Casing Program

Why is casing needed?Why is casing needed?•Protect freshwater aquifers Protect freshwater aquifers that that might be present in the subsoilmight be present in the subsoil

•Prevents contaminationPrevents contamination between between rock strata layersrock strata layers

•Contain any unusual pressureContain any unusual pressure in in the layers of rock strata that might the layers of rock strata that might be encounteredbe encountered

•Prevent borehole collapse Prevent borehole collapse while while drilling deeper drilling deeper

•Provide Provide control of drilling mud control of drilling mud being pumped down-holebeing pumped down-hole

High Pressure Zone

Low Pressure Zone or future producing zone

Black Gold!Cap Rock

Wellbore thru the rock

strata

33

Freshwater Aquifer

http://www.youtube.com/watch?NR=1&v=fNq2uKfSvhw&feature=endscreen

Petroleum Engineer: Well Design

Well DesignWell Designduring completionduring completion

``

Surface

PerforationsPerforations

Xmas Tree– Monitor & Controls the pressure within the each casing of the well while allowing the well to flow to the surface

Perforations – Holes shot thru the casing to allow fluid to flow into the wellbore

Down-hole Completion Equipment – Devices & tools installed in the well to control which reservoir is produced and to give real-time data

Down-hole Down-hole Completion Completion Equipment`Equipment`

34

Xmas Tree

Petroleum Engineer: Well Design

Captured from a YouTube Video.

This is a section of pipe tubing;

Shaped charges will be set off to make the perforations.

These pictures show the power of the shaped charges…

Petroleum Engineer: Perforating Pipe

Well DesignWell Designduring completionduring completion

``

Surface

PerforationsPerforations

Production Tubing – A string of pipe that runs from the producing zone to the wellhead in which oil and/or gas flows to the surface facilities

Down-hole Down-hole Completion Completion Equipment`Equipment`

36

Xmas Tree To Production

Facilities

Petroleum Engineer: Well Design

Types of Well DesignTypes of Well Design

Black Gold!Black Gold!Cap RockCap Rock

37

•“Straight-hole”

•Directional or “Deviated Well”

•“Horizontal Well”

Petroleum Engineer: Well Design

Deviated WellDeviated Well

Why drill a deviated well?Why drill a deviated well?

Black Gold!Black Gold!Cap RockCap Rock

High High Pressure Pressure

zones behind zones behind faultfault

38

Fault

• Known fault can cause an unplanned deviation from the projected drill path

• High pressure zones might exist to one side of a fault

• Subsurface “debris” like ancient reefs could cause a slower drill rate (ROP) than desired (time is money!)

Petroleum Engineer: Well Design

Deviated, Horizontal WellsDeviated, Horizontal Wells

Why drill a horizontal well?Why drill a horizontal well?

39

• Low permeability reservoirs are best produced by horizontal wells, the ultimate in “deviated well”

• Three kinds of horizontal wells, long/short/medium radius:

• Long = 10 per 100ft

• Medium = 20 per 100ft• Short = 40 per 100ft

Target Reservoir

Petroleum Engineer: Well Design

Horizontal Well ProcedureHorizontal Well Procedure

40

• At start of deviation, replace drillbit with a “bent sub”, gyroscope, steerable mud motor & bit

• Add logging-while-drilling (LWD) unit & power pack within 20 ft of bit

• Slowly rotate drillstring to prevent “sticking” & start “pushing” steerable system forward while flowing mud to mud motor

• Drill while being pushed forward & steer system as need be to maintain horizontal direction

Petroleum Engineer: Well Design

Multilateral, Multilateral, Horizontal WellsHorizontal Wells

41

• Added advantage of horizontal well design is to include “Multilaterals” (additional boreholes from the same drillsite)

• From one wellsite, several sections of the reservoir can be accessed & produced

Plan view

Drillsite

Significant Production

Increase

Petroleum Engineer: Well Design

Horizontal Drilling AdvantagesHorizontal Drilling Advantages

42

• Increase in Increase in reserves in place by 2% reserves in place by 2% of the original of the original oil in place (OIIP)**oil in place (OIIP)**

• Cost ratio Cost ratio of horizontal versus vertical wells is of horizontal versus vertical wells is approximately approximately 2 to 12 to 1****

• Production ratio Production ratio for horizontal wells versus vertical for horizontal wells versus vertical wells is approximately 3.2 to 1**wells is approximately 3.2 to 1**

• Inclusion of Inclusion of multilaterals increases production multilaterals increases production ratio even moreratio even more!!!!

** per U.S. Department of Energy

Petroleum Engineer: Well Design

Final Well ProgramFinal Well Program• Well Schematic Well Schematic – Showing hole – Showing hole

(bit) size, casing plan, mud plan, (bit) size, casing plan, mud plan, planned TDplanned TD

• Drilling Time Estimate Drilling Time Estimate – – Breakdown total time into key Breakdown total time into key components to various depthscomponents to various depths

• Well Cost Estimate Well Cost Estimate – Listing of all – Listing of all expected costs for the wellexpected costs for the well

• Well Time VS. Depth Plot Well Time VS. Depth Plot – a – a “picture” of how much drilling “picture” of how much drilling time is planned for each casing time is planned for each casing runrun

43Petroleum Engineer: Well Design

LETS GET STARTED DRILLING!!

44Petroleum Engineer: Drilling

OffshoreOnshore

Well Location?

45Petroleum Engineer: Drilling

On-structureOn-structure(“In-field”, Appraisal)(“In-field”, Appraisal)

ExploratoryExploratory(“Wildcat Well”)(“Wildcat Well”)

Normal Success Normal Success Rate = Rate = +/-+/- 1 in 10 1 in 10 toto

+/- 3 in 10+/- 3 in 10

Normal Success Normal Success Rate = Rate = +/- 5 in 10 +/- 5 in 10 to to

+/-+/- 9 in 109 in 10

Well Type?Well Type?

46Petroleum Engineer: Drilling

Main Components of Main Components of Drilling

Derrick

Drill BitDrill Bit

47

Drill MudDrill Mud

Traveling Block/SwivelTurntable/Kelly/ Kelly Bushing

Casing (different sizes)Blowout Preventer

Drill StringDrill String

Petroleum Engineer: Drilling

Drilling MudDrilling MudWhat is Drilling MudWhat is Drilling MudA A mixture of clay mixture of clay with either water, oil, oil and with either water, oil, oil and water, or synthetic organic matter and water. water, or synthetic organic matter and water. To this, To this, various viscosity and density various viscosity and density enhancers and additives enhancers and additives to achieve specific to achieve specific objectives (objectives (adjust pHadjust pH, , control bacteriacontrol bacteria, , de-de-foamfoam, , filtrate reducersfiltrate reducers, etc.) are added., etc.) are added.

How does it get in the well?How does it get in the well?Mud is pumped Mud is pumped into the drill pipeinto the drill pipe, flows down , flows down the drill pipe, the drill pipe, exits out the drill bitexits out the drill bit, and flows, , and flows, along with rock cuttings, along with rock cuttings, up the borehole up the borehole back back to the rig.to the rig.

Drill BitDrill Bit

Mud

out

Mud

outMudMud

ININ

Well Well borebore

48Petroleum Engineer: Drilling

What is the Drilling Mud System?What is the Drilling Mud System?

49

1. Mud Pit or Tanks

1. Mud Pit or Tanks

4. Circulate Mud down drillstring

and back up borehole exit

below Blowout Preventer

4. Circulate Mud down drillstring

and back up borehole exit

below Blowout Preventer

A ‘CLOSED SYSTEM’ where the drilling mud is mixed &

pumped:

•from the mud pit/tanks, •up into the mud hose•down into the drillstring, •thru the drillbit, •up the wellbore,•over the shaleshakers and •back to the mud pit/tanks

2. Mud Pump

2. Mud Pump

3. Mud Hose

3. Mud Hose

5. Shale shakers5. Shale shakers

Petroleum Engineer: Drilling

What does Drilling Mud do?What does Drilling Mud do?

• CoolsCools drill-bit drill-bit

• StabilizesStabilizes borehole walls borehole walls

• TransportsTransports rock cuttings (“cuttings”) to rock cuttings (“cuttings”) to surface (mud engineer examines cuttings surface (mud engineer examines cuttings w/microscope to check for oil and porosity)w/microscope to check for oil and porosity)

• OffsetsOffsets hydrostatic/reservoir pressure hydrostatic/reservoir pressure

50Petroleum Engineer: Drilling

How Critical is How Critical is Drilling Mud?Drilling Mud?

SG

TV

DB

DF

(m

)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3

20"

13.5/8"

10.3/4" x 9.7/8"

• Blue line is Blue line is Pore Pressure Pore Pressure (the (the pressure from the overburden)pressure from the overburden)

• Red line is the pressure that Red line is the pressure that will fracture will fracture the reservoirthe reservoir

• Yellow line is Yellow line is Mud Weight Mud Weight pressurepressure

• If Mud weight is too hi, it will If Mud weight is too hi, it will damage the reservoir; if too damage the reservoir; if too low, a well blowout is possiblelow, a well blowout is possible!!

51

OverpressureOverpressurezoneszones

Specific Gravity

Petroleum Engineer: Drilling

Drilling Contract TypesDrilling Contract Types

• Costs per Day (Costs per Day (DAY RATEDAY RATE))

• Costs per Foot (Costs per Foot (FOOTAGE RATEFOOTAGE RATE))

• Set Costs (Set Costs (TURNKEY BASISTURNKEY BASIS))

• Success often depends on quality & Success often depends on quality & experience of Operatorexperience of Operator

53Petroleum Engineer: Drilling

Drilling OperationsDrilling Operations• Survey well locationSurvey well location• Build roads, clear and level groundBuild roads, clear and level ground• Drill water well (optional)Drill water well (optional)• Layout casing pipe/drill string & Layout casing pipe/drill string &

equipmentequipment• Prepare drilling mudPrepare drilling mud• Assemble RigAssemble Rig• Drill each segment; set casing & Drill each segment; set casing &

cementcement

54Petroleum Engineer: Drilling

Drilling Operations (cont’d)Drilling Operations (cont’d)

• PlannedPlanned drill breaks: layout and position drill breaks: layout and position casing on deck, circulate bottom to remove casing on deck, circulate bottom to remove cuttings, coring, drill stem testing, etc.cuttings, coring, drill stem testing, etc.

• UnplannedUnplanned drill breaks: stuck pipe,lost drill breaks: stuck pipe,lost circulation, required fishing trip, etc.circulation, required fishing trip, etc.

• Let’s look at POSSIBLE DRILLING Let’s look at POSSIBLE DRILLING PROBLEMS, CORING and WELL LOGGINGPROBLEMS, CORING and WELL LOGGING

55Petroleum Engineer: Drilling

Possible Drilling Problems• Lost tool Lost tool (something breaks off or is dropped in well)(something breaks off or is dropped in well)

• Stuck Pipe Stuck Pipe (drill pipe adheres to well walls due to suction/differential (drill pipe adheres to well walls due to suction/differential pressure or dogleg in wellbore)pressure or dogleg in wellbore)

• Sloughing shale Sloughing shale (swelling of shales, drops to bottom, can’t circulate (swelling of shales, drops to bottom, can’t circulate out)out)

• Lost circulation Lost circulation (high porosity zone/cavernous zone)(high porosity zone/cavernous zone)

• Corrosive gases encountered Corrosive gases encountered (hydrogen sulfide)(hydrogen sulfide)

• Abnormal high pressure Abnormal high pressure (drill into/through a high press zone)(drill into/through a high press zone)

• Blowout Blowout (mud weight not sufficient to hold back abnormal high (mud weight not sufficient to hold back abnormal high pressure gas; gas flows to surface and ignites unexpectedly)pressure gas; gas flows to surface and ignites unexpectedly)

56Petroleum Engineer: Drilling

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What is Coring?Two types of coring:• Sidewall Cores (1”dia X 4”

long)• Rotary Cores (3 ½” to 5 ¼”

dia X 30-50 FEET long)

59Petroleum Engineer: Drilling

What is a Well Log?• After reaching the well “TD”, the well-bore is

logged using a tool that is “run” downhole on a cable.

• In the tool are sensors that measure rock and fluid properties continuously down the borehole.

•

• Properties measured include: resistivity of the rock, conductivity thru the rock, size of borehole, rock’s reaction to nuclear radiation, etc.

• A long, fan-folded, “chart” prints out the data

60Petroleum Engineer: Drilling

Logging Types (not all)

Each type of log Each type of log has its has its advantages and disadvantages advantages and disadvantages and hence and hence are are used at different times used at different times and and in different situationsin different situations

• Caliper LogCaliper Log• SP (spontaneous potential) LogSP (spontaneous potential) Log• Dip/dipmeter LogDip/dipmeter Log• Electrical Resistivity LogElectrical Resistivity Log• Sonic/Acoustic Velocity LogSonic/Acoustic Velocity Log• Natural Gamma Ray Radiation LogNatural Gamma Ray Radiation Log• Neutron (Formation) Density LogNeutron (Formation) Density Log• Neutron Porosity LogNeutron Porosity Log• Nuclear Magnetic Resonance LogNuclear Magnetic Resonance Log

61Petroleum Engineer: Drilling

Basic Log Interpretation

Draw SHALE line on SP CURVE- Left side is SAND- Right side is SHALE

Draw SHALE line on RESTIVITY CURVE- Left side in SAND is SALT WATER- Right side in SAND is Oil or Gas

-Next pick sidewall coring locations…

62Petroleum Engineer: Drilling

SPontential Resistivity

Basic Log Interpretation- Sidewall Core Selection -

63

SPontential Resistivity

Basic Log Interpretation- Sidewall Core Selection -

64

OIL

GAS

SPontential Resistivity

Drilling Questions• How many bidders? What are the advantages of How many bidders? What are the advantages of

selected contractor?selected contractor?• What type of rig contract? What type of rig contract? • What is fixed price / what is variable price? Any What is fixed price / what is variable price? Any

rented equipment included?rented equipment included?• Does contractor use own-crew or “rented” crew?Does contractor use own-crew or “rented” crew?• What has been safety record of this rig/crew?What has been safety record of this rig/crew?• Who is the Tool Pusher and what is his/her Who is the Tool Pusher and what is his/her

experience?experience?• How much coring and logging is planned?How much coring and logging is planned?

65Petroleum Engineer: Drilling Summary

WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?

REVIEW – SESSION 3

• Deciding what, where and how to drill is a _______ effort composed of a __________, ____________, __________ and __________ and many others.

• The measure of open spaces in rock is the __________; the measure of the ability of fluid to flow thru rock is the ___________.

• The amount of oil/gas in a reservoir currently available for production is called what? _________.

• The most important type reserves and the only one the SEC will accept are the ______________ reserves.

• Reserves estimating is more of an ______ than a science.

• Successive sections of pipe of decreasing diameter set one inside the other and cemented in a wellbore is the _______ ______.

• Protection of freshwater aquifers in a well is done by the ________.

TEAM

66

GEOLOGIST GEOPHYSICIST LANDMAN

POROSITY

P90 OR PROVED

CASING STRING

ENGINEER

PERMABILITY

RESERVES

ART

CASING

Next page

WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?WHAT HAVE WE TALKED ABOUT?

REVIEW – SESSION 3

• Two well types: ______________________ and _______________________.

• The worst odds of an exploratory well being successful is ___in 10; the worst odds of an on-structure/appraisal well being successful is ___in 10.

• When drilling, the drill bit is kept cool by the ______.

• If mud weight is too high, it will damage the ___________; if too low, a well __________ is possible.

• The depth below surface to the bottom of a well is the _____ _____ abbr. as “TD”.

• A technique of running a special tool downhole to take measurements around the payzone is called well _________.

• Engineers are highly trained, overworked, and under-appreciated and therefore they should be paid _________!

67

EXPLORATION OR “WILDCAT” APPRAISAL OR ON-STRUCTURE

3

BLOWOUT

LOGGING

1

MUD

RESERVOIR

TOTAL DEPTH

MILLIONS!

Week 1: Geology & History of Fossil FuelsWeek 1: Geology & History of Fossil Fuels Week 2: Oil Exploration Week 2: Oil Exploration Week 3: Petroleum EngineeringWeek 3: Petroleum Engineering

Week 4: ‘Vagabond Group’ proposes 2 prospectsWeek 4: ‘Vagabond Group’ proposes 2 prospects

Week 5: ‘Vagabond Group’ plans productionWeek 5: ‘Vagabond Group’ plans production Week 6: Calculating the Payout?!Week 6: Calculating the Payout?!

The Basics:The Basics:

The Adventure:The Adventure:

A black-gold millionaire or dry hole hobo?A black-gold millionaire or dry hole hobo?

NEXT WEEK…

Your chance to invest !Your chance to invest !

Thank You!Thank You!RememberRememberRememberRemember

Geology Rocks!Geology Rocks!69

SESSION 3 – PETROLEUM ENGINEER

ANY QUESTIONS??70

Session 3Session 3- Petroleum Engineer -- Petroleum Engineer -

All class material either is All class material either is or or

will be on will be on 1) the University’s website1) the University’s website

and onand on

2) Our website at:2) Our website at:

www.vagabondgeology.comwww.vagabondgeology.com

REFERENCESREFERENCES• http://www.youtube.com/watch?v=BdRcALtA8CE&NR=1• http://www.api.org/ehs/performance/explore/moreexplorprodu

ction.cfm

• http://tonto.eia.doe.gov/dnav/ng/ng_enr_sum_dcu_rusf_a.htm • http://www.eia.doe.gov/pub/oil_gas/natural_gas/data_publicati

ons/crude_oil_natural_gas_reserves/current/pdf/appb.pdf

• http://www.eia.doe.gov/pub/oil_gas/petrosystem/petrosysog.html

• http://www.energy.gov/energysources/fossilfuels.htm • http://tonto.eia.doe.gov/energy_in_brief/foreign_oil_dependenc

e.cfm

• http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

• http://www.eia.doe.gov/neic/speeches/Caruso061305.pdf • http://www.npc.org/Study_Topic_Papers/7-STG-GlobalAccess.pd

f• http://www.eia.doe.gov/neic/infosheets/crudeproduction.html • http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publica

tions/chronology/petroleumchronology2000.htm#T_2_

• http://images.google.com/imgres?imgurl=http://www.osha.gov/SLTC/etools/oilandgas/images/rig09.jpg&imgrefurl=http://www.osha.gov/SLTC/etools/oilandgas/illustrated_glossary.html&h=628&w=353&sz=56&hl=en&start=18&tbnid=T-wN7VuGlNKMVM:&tbnh=137&tbnw=77&prev=/images%3Fq%3Drotary%2Boil%2Bdrilling%2Brig%26gbv%3D2%26hl%3Den%26safe%3Doff%26sa%3D

• http://www.investopedia.com/features/industryhandbook/oil_services.asp

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• http://www.oilprimer.com/• http://oilandgasinvesting.com/ • http://www.beg.utexas.edu/mainweb/presentations/2004_p

resentations/pdf/wang_111704.pdf• http://www.petroleum-economist.com/• http://www.eia.doe.gov/bookshelf/brochures/gasolineprices

primer/index.html

• http://www.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/cost_indices_equipment_production/current/coststudy.html

• http://oilandgasinvesting.com/news/1-latest-news/50-investing-in-oil-a-gas-based-on-cash-flow-a-costs-versus-recoverable-reserves.html

• http://www.energyinst.org.uk/education/glossary/ • http://fossil.energy.gov/programs/reserves/npr /publications

/Drilling_for_Oil_and_Gas.pdf• http://www.glossary.oilfield.slb.com/ • http://en.wikipedia.org/wiki/Well_drilling• http://en.wikipedia.org/wiki/Drilling_mud• http://www.youtube.com/watch?v=LcNZfJbH5pk• http://www.youtube.com/watch?v=oZUUGpecphc&NR=1• http://www.youtube.com/watch?v=fl8L4qSqSqE• http://www.youtube.com/watch?v=cXd01nq_HK8• http://www.geolab.unc.edu/Petunia/IgMetAtlas/mainmenu.

html• http://www.offshore-mag.com/index.cfm • http://tonto.eia.doe.gov/ftproot/petroleum/tr0565.pdf • http://www.horizontaldrilling.org/ • http://home.versatel.nl/the_sims/rig/lakepeigneur.htm

REFERENCESREFERENCEShttp://www.youtube.com/watch?NR=1&v=fNq2uKfSvhw&feature=endscreen http://www.youtube.com/watch?v=Q9gGqNUxQ5Q&feature=endscreen&NR=1 http://en.wikipedia.org/wiki/Completion_(oil_and_gas_wells) http://gekengineering.com/Downloads/Free_Downloads/Perforating_Basics.pdfhttp://en.wikipedia.org/wiki/Semi-submersibles http://www.ehow.co.uk/info_8712642_deep-vs-shallow-water-drilling.html http://www.ehow.co.uk/about_4597210_offshore-oil-rigs.html

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http://www.osha.gov/SLTC/etools/oilandgas/images/bop_stack.jpghttp://www.youtube.com/watch?v=lkqpEXy0frE&feature=related http://www.youtube.com/watch?v=sYTO_0_0ReQ&feature=related http://www.youtube.com/watch?v=4ntsk1g-2oY&feature=related http://www.techstreet.com/apigate.html http://en.wikipedia.org/wiki/Jackup_barge

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INLAND WATER RIGS

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JACKUP DRILLING RIGS

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SEMI-SUBMERSIBLES RIGS

Deepwater system types (2008) 76

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Petroleum Engineer: Reservoir Characterization79

6th !

Note that the world understands that “proved” Note that the world understands that “proved” reserves is what’s important…reserves is what’s important…

http://www.eia.gov/countries/data.cfm

12th !

Click here to see an Onshore Drilling Rig

Set up Animation

81Petroleum Engineer: Drilling

http://www.youtube.com/watch?feature=endscreen&v=qdKIaRHchqc&NR=1

Click here to see learn about casing strings

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