CHAIR OF PETROLEUM AND GEOTHERMAL ENERGY

RECOVERY

Introduction to Petroleum
Engineering

Univ. Prof. Dipl. Ing. Dr. Herbert Hofsttter

GENERAL

OIL HISTORY

OIL INDICATION

Gas shows (Methan, H2S, CO2); RO, Azerbaijan, Turky, Iraq (Ninive,
Babylon)

Mud vulcanoes (RO, Azerbaijan, Iran, TX, Louisiana)

Shiny light oil seeps (< 0,9 g/cm); Bavaria, Italy, Iran, Pennsylvania
Heavy oil seeps (viscous, dark, > 0,9 g/cm); Can

Asphalt seeps (light components evaporated, oxydation and

polymerisation of heavier HC); F, D, UKR, Azerbaijan, Israel/Jordan Dead
Sea, Trinidad, Venezuela, Cal
Oil Shale (to be destilled)
Salt water (Iodine, Bromine, NaCl); Iraq, USA (Cal, Pen), Colombia,
Russia, Romania

OIL HISTORY

3300 BC: Sumerians (Mesopotamia/Iraq): First decoded word for a similar

substance of crude oil ESIR (shining water)

1500 BC: Babylonian sewage systems; Egyptian Mummies

347 BC: First oil drilling reported in China (Bamboo)
650 AC: Byzantene Greek fires (naval battles)

1264: Marco Polo reported oil usage in Baku (first reports 9th century);
Fire Temple of Baku (Ateshgyakh)
1700: Oil Shale Tegernsee (Germany), medical use for animals and
humans Turkish scientist reported 500 wells surrounded Baku
1844: F.N. Semyenov: Bibi-Eibat (Percussion drlg.); still on production
1850: First refineries in US (destillers); illuminated
1859: Titusville (Pennsylvania, US) Edwin L. Drake first commercial oil;
Oil Mine Wietze (Germany)
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OIL HISTORY contd.

1869: North America, Europe percussion drilling for oil (salt water techn.)
first refinery in Baku (1867: 15 Refineries, 1906: 833 km Pipeline)
1870: Standard Oil Co. (Rockefeller)
1901: Spindletop Hill (Beaumont, Tx) birthday of modern petroleum
industry, drilling and financial problems

Captain Anthony F. Lucas (Antun Luchich),Giovanizo/Dalmatia (347m),

Gusher 100.000 bbl/d, 60 m height, 9 days
1902: 600 companies, 285 active wells; 72 MM bbls over the next 10 yrs
1911: US-Anti Trust Law 30 companies (Exxon, Mobil, Standard Oil ).
1930: Rotary drilling Middle East, Georgia (Baku) 3500 wells , Indonisia
(Shell, BP founded);
1960: OPEC (Vienna based): stabilization of prices
1973: Oil crisis (Yom Kippur War: Israel vs. Arab states)
2008: Oil price WTI > 146 USD/bbl
5

HISTORY

Greek fire was a burning, liquid weapon used by the Byzantine

Greeks (650 AD), Arabs, Chinese (970 AD), and Mongols. The
Byzantines typically used it in naval battles to great effect as it could
continue burning even on water.

HISTORY

Sicilians sponge up oil from the surface of the sea

after Johannes Stradanus (1523-1605)

Drilling Activity China appr. 1830

Ancient Drilling and Fishing Tools China 1835

RESERVES &
RESOURCES

10

WORLD GLOBAL ENERGY SUPPLY

11

World oil production by source in million barrels per day

DEFINITIONS
Reserves:
Reserves are the estimated quantities of hydrocarbons that are
claimed to be recoverable under existing economic and operating
conditions.
The total estimated amount of hydrocarbons in an reservoir,
including both producible and non-producible hydrocarbons, is
called oil/gas in place.
Resources:
Resources are those quantities of hydrocarbons estimated, as of a
given date, to be potentially recoverable from accumulations, but
the applied project(s) are not yet considered mature enough for
commercial development.

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RESERVE ESTIMATION

History:

1920
1939
1972
1977

Reserves = f ( Price, world economics, availability , cost, salaries,

technical or fiscal measures, political boundaries, speculations etc.)

US Geological Survey announced peak oil

US Department of Interior: Oil reserves for 13 more years
Club of Rome: Limits of growth
US President Jimmy Carter: We are running out of oil

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OIL PRICES - actual

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WORLD GLOBAL ENERGY SUPPLY

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WORLD PROVEN CRUDE OIL RESERVES [bn b]

Reserves / Annual consumption

1,4 E12 / 31,4 E9 = 44,6 years

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WORLD PROVEN NATURAL GAS RESERVES [1000 bn scm]

Reserves / Annual consumption

1,92 E14 / 3,2 E12 = 60,0 years

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EU OIL % GAS RESERVES

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IDEALISED PRODUCTION PROFILE

MAJOR OIL COMPANIES CRUDE OIL AND NGL DATA

Reserves [bn $]

Production [1000 b/d]

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WORLDS UNDISCOVERED NATURAL GAS RESOURCES, 2012

WORLDS UNDISCOVERED OIL RESOURCES, 2012

OPEC Surplus Crude Oil Production Capacity

Source: EIA

GLOBAL CONSUMPTION OF OIL PER CAPITA, 2003

25

World hydrocarbon resources

TECHNICAL CHALLENGE

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TYPICAL HC BEARING SEDIMENTARY LAYERS

SANDSTONE RESERVOIR ROCK

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RESIDUAL OIL

Example of cores of oil-bearing rock

RECOVERY FACTOR

Oil Recovery Factors:

1979: 20%
2000: 35 %
> 2000: 50%
Average increase of the RF : 0,2 1% / year
1% Increase = Annual consumption

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FROM A WOODEN SHACK .

FROM A WOODEN PIPELINE .

HISTORY
Oil Production Austria 1951

36

ENVIRONMENTAL ASPECTS

OIL / GAS PRODUCTION SYSTEMS

Sucker Rod Pumping / Pump Jack

Wellhead Gas Production

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IMPACT OF TECHNOLOGY ON NORTH SEA PRODUCTION

CONVENTIONAL VS EXPANDABLE TECHNOLOGY

EXPANDABLE TECHNOLOGY

FUTURE OIL AND GAS DEEPWATER POTENTIAL UN THE WORLD

EVOLUTION OF DEEPWATER TECHNOLOGY

EVOLUTION OF DRILLING TECHNOLOGY

Vertical wells
Deviated wells

Horizontal wells

SCHEMATICS OF MULTILATERAL WELLS

COILED TUBING APPLICATION

3 D SEISMIC

RESERVOIR SIMULATION - BYPASSED OIL

HEAVY OIL

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HEAVY OIL - RESOURCES

SCHEMATIC OF SAGD

SHALE GAS, COALBED METHANE

AND HYDRATES

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SANDSTONE vs. SHALE MATRIX

Sandstone

Shale

SHALE GAS IN EU

SHALE GAS IN US

DISTRIBUTION OF OIL SHALES

US COALBED METHANE GAS PRODUCTION

US CBM RESOURCES

Figure 4.2

GAS HYDRATES

MAP OF CONFIRMED METHANE HYDRATE PRESENCE

OIL CHEMISTRY

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HYDROCARBONS
Chemistry

Crude oil is a mixture of many

compounds, most of them
hydrocarbons.
Hydrocarbon molecules vary at a
great deal as to how many atoms they
contain.
A molecule of methane - the main
component of natural gas - consists
of just one carbon atom and four
hydrogen atoms; while a molecule of
polyethylene is a long chain of
thousands of carbon and hydrogen
atoms.

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OIL PRODUCTS
Refinery Products

LPG
chemicals
petrol for vehicles
jet fuel, paraffin for lighting and heating

diesel fuels
lubricating oils, waxes, polishes
fuels for ships, factories and central
heating

bitumen for roads and roofing

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CRUDE OIL CLASSIFICATION

They are classified by
location (e.g.: "West Texas Intermediate, WTI")

relative weight or viscosity ("light", "intermediate" or "heavy")

sulphur content ("sweet" or "sour"): sour crude oil requires more
expensive refining)

Each crude oil has unique molecular characteristics which are

understood by the use of crude oil assay analysis in petroleum
laboratories.
At the stockmarkets a few crude oils are traded only; other oils are
either up- or devalued, according to these references.

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REFERENCE CRUDES
Brent Crude, comprising 15 oils from fields of the North Sea. Oil
production from Europe, Africa and Middle Eastern oil (flowing
west) tends to be priced off the price of this oil, which forms a
benchmark.
West Texas Intermediate (WTI) for North American oil.
Dubai, used as benchmark for Middle East oil flowing to the Asia-Pacific
region, light sour crude oil.
Tapis (from Malaysia, used as a reference for light Far East oil)

Minas (from Indonesia, used as a reference for heavy Far East oil)
The OPEC Reference Basket, a weighted average of oil blends from
various OPEC countries.

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OIL DENSITY API CLASSIFICATION

Crude Oil is classified according to its API gravity
measured in API

API =

141.5

go

-131.5

go....specific gravity

Light: API > 30

Medium: 30 > API > 22
Heavy: 22 > API > 10

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DEFINITIONS

Barrels per day (BPD, bbl/d, bpd, bd or b/d). For example, an oil field might
produce 100,000 bpd (100 Mbpd), and a country might consume 1 million bpd
(1 MMbpd). Not to be mixed up with SI prefixes (k = 1.000, M = 1.000.000)

According to BP Statistical Review 2006:

1 barrel = 42 US gallons

1 BPD = 42/24/60 = .0292 GPM

1 GPM = 34.29 BPD
1 barrel equals 158.984 litres
The approximate conversion for BPD
to tonnes/year is 49.8, so 100,000 BPD
equals around 4,980,000 tonnes per year.
Standard Oil Companys
blue barrel (bbl)

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OIL EQUIVALENT
The tonne of oil equivalent (toe) is a unit of energy
1 bbl = 0.146 toe (6.841 boe = 1toe)
Multiples of the toe are used, in particular the megatoe (Mtoe, one million
toe) and the gigatoe (Gtoe, one billion toe).
The IEA/OECD define one toe to be equal to 41.868 GJ or 11.630 MWh.
1 toe = 41.85 GJ

1 toe = 7.11, 7.33, or 7.4 boe

1 tonne petroleum equivalent (TPE) = 45.217 gigajoules (used in
renewable energy

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CONVERSION TABLE

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CONVERSIONS

Pressure:
1 bar = 14.5038 psi
1 bar = 100 kPa
1 atm = 1.013 bar

Temperature:
C = (F-32)/1.8
K = C + 273.15
F = C*1.8 + 32
R = F + 459.67

Volumes:
1 m3 = 6.28981 bbl
1 m3 = 35.3146 ft

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SECURITY OF SUPPLY

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GAS FROM RUSSIA FOR EU 2008

Gas pipelines
existing
Under construction

Jamburg
Urengoy

Liquefied Natural Gas

Terminal
existing
under construction

Uchta

Oslo
Helsinki

Belfast

Stand: 2008

St. Petersburg
Stockholm
Kopenhagen

Dublin

Moskau

London

Akmola

Berlin
Orenburg

Brssel

Minsk

Paris

Warschau
Prag

Lissabon

Bern

Wien
Ljubljana

Kiew
Bratislava
Budapest
Astrachan

Madrid

Taschkent

Bukarest
Belgrad
Rom
Sofia

Aschchabad

Istanbul

Algier

Baku
Tunis

Athen

Ankara

Erzurum
Tbris

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SEASONAL SWING

73

SEASONAL SWING Germany Sept 2013

Source: AGSI

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TYPES OF GAS STORAGE

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GAS STORAGE

943

944

-1079 m

thickness
1050
993

Original WC

sekundr

-1100 m

1058

initial
Base = 1140 m.

Minimum Aquifer Case

Maximum Reservoir pressure
Maximum Injection THP

Maximum Aquifer Case

Maximum Reservoir pressure
Maximum Injection THP
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GAS STORAGE

CASING Underground gas storage example

GAS STORAGE FACILITY commissioning

Gas Treatment

Regeneration
Gas Heater
~ 2.9MW

Turbo compressor & driving motor

Regeneration
Gas Cooler
~ 8MW therm.
Contingency

~ 45kW electr.

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GAS STORAGE FACILITY commissioning

GAS STORAGE FACILITY Dehydration

GAS STORAGE FACILITY Dehydration & Cooler

CENTRAL EUROPEAN GAS STORAGE FACILITIES

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GAS STORAGE FACILITY HAIDACH general information

Natural gas is in terms of production, transport, storage
and combustion the eco-friendliest and low-emissioned
fossil fuel.

Natural Gas

0.20

Gas Oil

0.26

Heavy Oil

0.28

Black Coal

0.33

Brown Coal

0.4

in kg CO2/kWh fuel provided

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LNG AS AN IMPORTANT ALTERNATIVE

85

LNG TANKER

UNDERGROUND STORAGE FACILITIES

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LEACHING METHODS

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SANDSTONE vs. SHALE MATRIX

Sandstone

Shale

SHALE GAS DEVELOPMENT

SHALE GAS IN US

GAS FROM RUSSIA TO EUROPE

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OIL FLOWS

WORLD GLOBAL ENERGY SUPPLY

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The aging of the workforce (SPE membership data)

More than 50% of the work force will

leave the Industry within 10 years
. and then it gets awfully quiet

Source: www.spe.org

THE PETROLEUM FAMILY

Legal/Fin
Geoscience

Reservoir

Drilling

Surface
facilities

Production

Others

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CONCLUSION
The problems with hydrocarbons is nowadays rather capacity
than reserves.

Geopolitical development is the highest risk for security of

supply with hydrocarbons.
European security of supply with fossile energy is a big
issue.
Lack of skilled engineers and geoscientists (outrunning on
resources).
High potential in usage of new technologies to increase the
recovery factor.

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Visions
98