Lecture 01

Petroleum & Gas Exploration

NOTE:To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image.Historical over view of Petroleum

NOTE:To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image.Hubberts peak refers to world production ofFoodCO2OilCopper

The time scale relevant for oil formation is know as Geologic timePaleologic time Neologic timeHammer time

The PrizeIn 1970, several major US oil companies paid the government millions of dollars for oil-drilling rights off the coast of Oregon and WashingtonThey drilled three holes, then abandoned the operation, losing millions of dollars

What went wrong?They forgot the story about the Texas county that produced oil after 30 dry holes were drilledThey did not listen to the economists telling them that the amount of oil discovered depends on the number of dollars spent on the searchEnvironmentalists were better organized in Oregon and Washington than anywhere elseThere was really bad news in those three holesAll/None of the aboveThe Magic of Petroleum OutlineI. Where does petroleum come from?II. What do we get from oil?III. How much oil do we use? IV. Where do we get our oil?V. Strategic National Resource

Where does petroleum come from?

What is petroleum?Petroleum: A general term for all naturally occurring hydrocarbons (hydrogen + carbon)Solid Hydrocarbons: AsphaltLiquid Hydrocarbons: Crude oil Gas Hydrocarbons: Natural Gas: methane, butane, propane, etc.

The simplest hydrocarbon is Methane (CH4)1. Source Rocks Organic MatterSedimentary rocks rich in organic matter 0.5 - 2% by weightMost commonly microscopic marine material, but it can be land based materialOrganic material cannot decay too much It has to keep its carbon

2. Transform organic matter Add heat and pressure by burying it (Maturation)

3. Carrier beds Oil on the moveOil is less dense than water and will rise through the fluid system of the surrounding rockCarrier beds are rock layers that allow fluids to pass through themEx: SandstoneIf petroleum stays buried, it can become post-mature

4. TrapsIf nothing stops oil from rising, it will reach surface Ex: The La Brea tar pitsTraps can be rocks that do not allow fluids to pass through them, or folds and faults in the rock can trap petroleum

5. Reservoir rocks The oil needs to be trapped in a good placeA good reservoir rock is:Porous: holesPermeable: holes are connected so that its fluids can be produced (removed from them)

6. Proper timingTiming between accumulation of organic material, petroleum maturation, migration, and trap formation is vital

Review: Where does petroleum come from?Source rocks rich in organic matterTransform the organic material with heat and pressure to into petroleum (Maturation)Carrier beds that allow the generated petroleum to moveTraps that keep the petroleum below groundAdequate reservoir beds from which the petroleum can be extractedProper timing of events 1-5The author of the article argues that world oil production will declineBy 2100By 2050By 2010NeverII. What do we get from oil?1 barrel = 42 gallons of crude oil83% becomes fuelGasoline, diesel, jet fuel, heating oil, and liquefied petroleum gas (propane and butane) 17% otherSolvents, fertilizers, pesticides, plastics

III. How much oil do we use?US consumes 20,687,000 barrels of oil each day (2006)US motor gasoline consumption 9,253,000 barrels of oil each day (2006)World consumes 83,607,221 barrels of oil each day (2005)

Source: US Energy Information AgencyWorld Oil Consumption Predictions

IV. Where do we get our oil from?

Source: US Energy Information Agency2006 US Imports by CountryRankCountryMillions of barrels/dayRankCountryMillions of barrels/day1Canada2.411Ecuador0.32Mexico1.712United Kingdom0.33Saudi Arabia1.513Norway0.24Venezuela1.414Brazil0.25Nigeria1.115Kuwait0.26Algeria0.716Netherlands0.27Iraq0.617Colombia0.28Angola0.5All Countries13.79Russia0.4Non-OPEC8.110Virgin Islands (U.S.)0.3OPEC5.6Source: US Energy Information AgencyRankCountryTotal Oil Production**(million barrels/day)1Saudi Arabia11.12Russia9.53United States8.24Iran4.25Mexico3.86China3.87Canada3.18Norway3.09United Arab Emirates2.810Venezuela2.811Kuwait2.712Nigeria2.613Algeria2.114Brazil2.0Top World Oil Producers, 2005*(OPEC members in underlined italics)Reserves vs. ResourcesReserves are natural resources that have already been discovered and can be exploited for profit todayResources are deposits that we know of (or believe to exist), but are not exploitable todayExample: oil reserves ~1.2 trillion barrels, oil resources ~2 trillion barrels

World Supply and Demand

CoalCurrent world use: 6x109 tons/yearReserves of 1012 short tons (164 years at current rates). Widely distributed in the U.S. (27% of world reserves), Russia (17%), China (13%), Australia (9%), etc.

Natural gasCurrent world use: 1014 Scf/yearReserves of about 6x1015 cubic feet (60 years), resources of about 15x1015 cubic feet (150 years). OilCurrent world use: 3x1010 barrels/yearReserves of about 1012 barrels (30 years), resources of about 3x1012 barrels (100 years).Petroleum ExplorationSurface and subsurface geological studiesSeismic surveysGravity and magnetic surveysHorizontal magnetic gradientHelium content of soils

Questions?