Upstream Sector

Introduction
Agradecimientos.
CPIQ
El Consejo Profesional de Ingeniera Qumica de Colombia es una entidad
creada por la Ley 18 de 1976 y su Decreto Reglamentario 371 de 1982,
encargada de otorgar las matrculas y expedir las tarjetas profesionales,
realizar seguimiento y control del adecuado ejercicio de la profesin,
colaborar con las autoridades universitarias y profesionales y apoyar las
actividades de las asociaciones gremiales, cientficas y profesionales de la
Ingeniera Qumica.

Source Internet: CPIQ Web Page

Hydrocarbon Industry Sectors

Upperstream

Midstream

Downstream

Exploration and production (E&P)

Transportation (Crude or Refined)

Source Internet Boletin SAO . Association of American Railroads, Bloomber, Ecopetrol

Refinig of Petroleum

Petroleum or Crude Oil

Petroleum comes from Greek Petra-Rock and elaoin-Oil or Latin Oleum-Oil)
also Crude Oil, sometimes called Black Gold. Petroleum is a Hydrocarbon
Natural Mixture.

Source Internet Various

Natural Gas
Natural gas is a hydrocarbon gas mixture consisting primarily of
methane, but commonly includes varying amounts of alkanes and
butanes and even a lesser percentage of carbon oxide, nitrogen
and hydrogen sulfide (sour gas).[

Source Internet Various

Crude Oil and Natural Gas

Crude Oil (Oil) has Natural Gas. Oil is non renewable resources because they
cannot be replenished on human time frame. They also called fossil fuel
because they is thought where formed from dinosaurs.

Source Internet Various

Crude Oil and Natural Gas

Biotic theory: Petroleum is the
remains of organic material that
was deposited, usually in marine
environments, millions of years
ago.

Abiotic theory:
Deep in the crust or in the mantel of
the earth, bacteria may make oil
abiotically, that is from sources that
were never alive.
Hydrogen plus carbon dioxide with the
help of archaea yield methane plus
water.
archaea

Source Theories for The Origen of Oil by Mike Westlund

Crude Oil Resources

Reserve

Salt Mine

OPECs ASB 2013 2012 world reserves

Emerald Vein

Crude Oil Resources

Source: Internet

Crude Oil Resources Native Fluids

Single Anticlinal

Reservoir Rock
Reservoir Rock

Complex Faulted

Source: Internet Copyright 2010-2014 - San Joaquin Valley Geology

Porosity
Permeability
Saturation
Grain size

Crude Oil Resources

Exploratory well

Source: SPE PRM 2011

Exploratory
And Appraisal Wells

Crude Oil Resources

Assessment of Reserves

Source: SPE PRM 2011

Crude Oil Resources

Recoverable Reserves

Recoverable reserves is also often

called proved reserves.
A term used in natural resource
industries to describe the amount of
resources identified in a reserve that
is technologically or economically
feasible to extract. A new reserve
can be discovered, but if the
resource cannot be extracted by any
known technological methods, then
it would not be considered part of
recoverable reserves.

Source: SPE PRM 2011

Crude Oil Resources - Production

Crude Oil Resources Year over Year Balance

Produced

(-)
New Proved
2011
Year End
Balance

Discovery

(+)

$$$

2012
Year End
Balance

$$$$
EOR

(+)

OPEC Share of World Crude Oil Reserves 2012

OPEC Members 2012 Midyear Population

Country

2008

2009

2010

2011

2012

Algeria

34,591

35,268

35,978

36,717

37,800

Angola

16,368

16,889

17,430

17,992

18,577

Ecuador

13,805

14,005

14,307

14,483

15,500

IR Iran

72,584

73,651

74,733

75,150

76,520

Iraq

30,578

31,664

32,490

33,339

34,207

Kuwait

3,442

3,485

3,582

3,697

3,824

Libya

6,150

6,263

6,378

6,295

6,411

Nigeria

151,212

154,727

158,057

162,799

167,683

Qatar

1,447

1,639

1,715

1,733

1,774

Saud Arabia

27,787

26,661

27,563

28,376

29,196

United Arab Emirates

8,074

8,200

8,264

8,328

8,394

Venezuela

27,732

28,181

28,629

29,072

29,517

Total OPEC Members

391,769

400,634

409,127

417,982

429,402

Source OPECs ASB 2013

Oil and Gas Reserves Per Capita

Source OPECs ASB 2013

New World Energy Map - Reserves

Conventional Reserves
Thousands of Millions of BBL

Shale Gas
Billions of SCF

New World Energy Map

Source EIA and ARI

Natural Gas Proved Reserves LAR ( Billions of Cubic Meters)

Country

2008

2009

2010

2011

2012

Venezuela

4,983

5,065

5,525

5,528

5,563

Brasil

380

365

358

417

434

Mxico

359

359

339

349

360

Per

415

415

345

353

359

Argentina

428

399

379

359

333

Bolivia

750

750

695

281

281

Colombia

114

124

134

153

155

Chile

46

46

45

43

41

Source OPEPs : Desarrollo Peruano

Proved Reserves Thousands Millions of Bbl.

Country

2009

2010

2011

2012

2013

Venezuela

99

99

211

211

298(*)

Saudi Arabia

267

262

263

267

268

Canada

178

175

175

174

173

Iran

136

138

137

151

155

Iraq

115

115

115

143

141

Kuwait

104

104

104

104

104

United Arab Emirates

98

98

98

98

98

Russia

60

60

60

60

80

Libya

44

44

46

47

48

10

Nigeria

36

37

37

37

37

11

Kazakhstan

30

30

30

30

30

12

China

16

20

20

20

26

13

Qatar

15

25

25

25

25

Oil Demand Thousands of Barrels per Day (k b/d)

Country

2008

2009

2010

2011

2012

United States

19,498

18,771

19,180

19,949

18,555

China

7,468

8,540

9,330

8,924

9,324

Japan

4,788

4,406

4,465

4,480

4,720

India

2,864

3,113

3,255

3,426

3,441

Saudi Arabia

1,980

2,195

2,371

2,986

3224

Brazil

2,205

2,481

2,622

2,793

2,933

Russia

2,906

2,950

2,992

2,725

2,725

Germany

2,545

2,453

2,470

2,400

2,338

Canada

2,232

2,153

2,258

2,289

2,327

10

Korea,South

2,142

2,188

2,268

2,230

2,268

11

Mexico

2,161

2,071

2,080

2,133

2,147

12

Iran

1,742

1,766

1,726

2,028

2,088

13

France

1,945

1,868

1,881

1,792

1,738

Source US Energy Information Administration

World Oil Demand NAR and LAR (1000 b/d)

Source OPECs ASB 2013

World Proven Crude Oil Reserves NAR and LAR (millions barrels)

Source OPECs ASB 2013

Lasting time =

 

= 6 years

How much is there?

World reserves stood at 1,478,211 (*) millions of barrels. Word demand is about 76
millions of barrel per day. At this rate, the oil will last about 53 years.
Lasting time

Lasting time

Source OPECs ASB 2013

 

 

= 53 years

= 6 years

World Crude Oil Production Millions of Barrels Per Day (m b/d)

(m b/d)

USA Crude Oil Production

Source OPECs ASB 2013

World Crude Natural Gas Production (Billions Standard Cubic Meters per Day)
(b scm/d)

Source OPECs ASB 2013

Crude Oil

WTI is a light crude oil, with an API gravity of around 39.6 and specific gravity of about 0.827, which
is lighter than Brent crude. It contains about 0.24% sulfur thus is rated as a sweet crude oil (having
less than 0.5% sulfur), sweeter than Brent which has 0.37% sulfur.
Source :Association
Source.
Bloomber of American Railroads, Bloomber

Oil Production LAR 2012 Thousands of Barrels per Day (1000 b/d)
Country

2011

2012

Venezuela

2,881

2,804

Mxico

2,552

2,548

Brazil

2,105

2,061

Colombia

914

914

Argentina

560

535

Ecuador

500

504

Peru

70

67

Bolivia

44

51

Guatemala

11

11

10

Chile

Crude Oil
How much is there?
World reserves stood at 1,478,211 (*) millions of barrels. Word demand
is about 76 millions of barrel per day. At this rate, the oil will last about
53 years.
Lasting time
Lasting time

OPECs ASB 2013 2012 world reserves

= 53 years
= 6 years

Crude Oil API Classification

Oil API gravity is one way of expressing density. It is related to the specific gravity (SG) of the fluid as
follows:

Specific gravity is the ratio of the density of the fluid to the density of water at a reference
temperature and pressure (25C, 101 kPa).
Is used to a general classification of crudes as extra heavy oil, heavy oil, medium oil and light oil

The density of a crude of 10 API is equal to the density of fresh water at Standard Conditions

Crude Oil Heavy Oil Denominations

Because there is a range variation in viscosity for similar API grades and confusing denomination
for Heavy Oils, Bitumen and Tar Sands there a need for a simple classification based on viscosities

Class Description

Viscosity

Condition
(1)

API range

Example

Medium Heavy Oil

>10 to <100

Mobile

>25 to <18

Llanos Field

Extra Heavy Oil

>100 to <10000

Mobile

>20 to < 7

Orinoco & Castilla

Tar Sands and Bitumen >10000

Non mobile >12 to > 7

Oil Shale (2)

Non mobile

(2)

(1) At cold conditions

(2)Rock of oil shale is not permeable

Athabasca Sand

Crude Oil API Classification

Crude Oil
Petroleum or crude oil is a complex mixture of
hydrocarbons and other chemicals. The
composition varies widely depending where and
how the petroleum was formed. In fact, a
chemical analysis can be used to fingerprint the
source of the petroleum. However, raw
petroleum or crude oil has characteristic
properties and composition.

Elemental Composition
1.Carbon
2.Hydrogen
3.Nitrogen
4.Oxygen
5.Sulfur
6.Metals

83 to 87%
10 to 14%
0.1 to 2%
0.05 to 1.5%
0.05 to 6.0%
< 0.1%

Unconventional Resources
Orinoco Heavy Oil
Sandstone

Unconventional Gas
Shale Gas

A depiction of how
methane hydrate
found in ice burns.

Resource triangle for natural gas (Holditch 2006).

Source: JPT 2010 BHI/CONNEXUS MAGAZINE

The U.S. Department of Energys National Energy

Technology Laboratory estimates that the global methane
hydrate resource is 700,000 Tcf (20 000 Tcm). Connexus
Baker Hughes Inc.

Unconventional Gas Vs. Conventional Gas

Unconventional

Source: EIA 2010

Unconventional Gas

Unconventional Gas

Frac Job

Source: EIA / Wikipedia

Shale Gas

Frac Job

Unconventional Gas - Frac Job

Water is by far the largest
component of fracking fluids.
A Hydraulic fracturing job
consume from 6,000 to
600,000 US gallons of
fracking fluids, but over its
lifetime an average well may
require up to an additional 5
million gallons of water for
full operation and possible
restimulation frac jobs.

Source: source watch organization

Portfolio of Electricity Generation USA

Colombia - Overview

VIM

VSM

Llanos

Preliminary studies suggest significant undiscovered heavy oil potential at shallow depths of less than
2,000 feet of between 1 billion and 2 billion barrels of oil in place could exist with 100 million to 300
million barrels of recoverable reserves. - Hart

Unconventional - Insight
Unconventionals is a very trendy word indeed. But what is so unconventional about unconventional oil and gas resources?
Heavy-oil exploitation is widely commercialized; whether by mining of the oil sands and oil shales or by in-situ steaming or combusting
processes that bring extra-heavy oil to the surface. Yet we say that such oil is unconventional.
Research and pilot operations continue in an effort to increase recovery and decrease costs. When cheap and easy oil becomes scarce,
should we then refer to these recovery techniques as advanced, complex, or difficult recovery rather than the exploitation of
unconventional oil?
The same could be said for shale gas. A few years ago, such gas was said to be unconventional. However, continued research and recent
exploitation with multifracs from horizontal wells have led us to think differently. Already, shale gas appears to be more conventional
than coalbed methane. With the ever-increasing need for natural gas as a clean fuel, the importance of producing more gas is growing.
Not all unconventional gas is equal: Each type is at a different stage of exploitation. While waiting to find out about the effect of
renewable energies on our society, gas remains the leading fuel of choice, whether it is natural or a product of gasification of coal or
biomass.
So, where do we look next? Previous centuries all favored a particular source of energy: The 19th century focused on coal because it had
no other alternative, and the 20th century was mainly oil-centered. In the 21st century, we must turn wisely to the resources we have.

There is no doubt that we will have to use a diversity of energy sources adapted to our needs: oil, gas, nuclear,
and renewable energies will all find their share. Marcel Polikar

Source: JPT JULY 2010

Marcel Polikar, SPE, is a Senior Reservoir Engineer with Shell International E&P in Rijswijk, The Netherlands, in the Thermal and Unconventional Enhanced-Oil-Recovery R&D group.

Operation and Services

Real Time Remote Services

The Future Belongs to Digital
Professionals

Digital USA Summit: Baker Hughes Inc.

Digital Oil Field/Engineer

Real Time/Remote Control
Advanced Control System
Data Base Management
Real Time Decision
Globalized Teamwork's
Production Enhancement
Reservoir Optimization

Exploration

Source Internet Various

Seismic Operations

Exploration Prospection
Seismic Operations
Seismic lab Crew
Vibroseis

Source Internet Various

Exploration and Development- Rig Types

Source Internet Various

Rig Systems Main Components

1.
3.
4.
5.
6.
7.
8.
9.
10.
13.
16.
18.
19.
21.
22.
23.

Crown
Drill Line
Monkey board
Traveling Block
Top Drive
Derick
Drill Pipe
Dog House
Blow Out Preventer
Generators
Mud Pumps
Mud Pits
Reservoir Pit
Shale Shaker
Choke Manifold
Pipe Ramp

Roughneck Jobs
Toolpusher:
Driller
Derrickhand
Motorman
Boilerman

Rig Systems - Hoisting

Source Internet Various

Rig Systems - Rotating

Source Internet Various

Rig Systems - Pipes

Drill String

Subs & Stabilizers

Drill Collars
HWDP
Bits

Rig Systems - BITS

Cones

Reamer
Core Bit

Eccentric

Inserts PDC
Source: Baker Hughes Inc and others

Hybrid

Jets

Rig Systems Rotating

Rig Systems Circulation

Rig Systems Safety

Drilling a well
Drilling and connections.
The Drillstring is run into the hole
with a Bit. The drillstring is rotated
and the bit drills the hole.
Pipe is run into the hole as Joints (30)
or Stands (90), a stand being three
joints of pipe.
After a joint or stand has been drilled
down, a Connection is made to add
another joint or stand to the string
and drilling continues.

Drilling a well
Drilling and tripping.
When a bit is worn out, or the planned
hole section has been finished the
drillstring will be pulled or tripped.
Stands of pipe are pulled and racked in the
derrick.
The bit will be changed and the pipe
tripped back into the hole.
Trips must be monitored to assure the
correct fluid is being returned to the hole.

Source Internet Various

Drilling a well Drilling Fluids (Muds)

Drilling a well
Directional drilling
To avoid collision with other wells.
To allow intersection by a relief
well in the event of a blow-out.
To hit the geological target areas
To provide a better definition of
geological and reservoir data.
For equity determination.
To fulfil local and government
regulations.

Completing a well
TYPICAL
DEPTHS
CONDUCTOR (26 20)
SUPERFICIE (20 13-3/8)

40-1500 FT
100-3000 FT

TIE-BACK LINER (9-5/8 5)

INTERMEDIO (13-3/8 7)

CASING

Casing is steel pipe that protects the hole

from collapse and the formation from
damage.
Casing is run from the wellhead, each
casing being run inside the other.
Surface Casing (30 & 20)

4000-16000 FT
LINER (9-5/8 5)

GREATER THAN
20000 FT

Intermediate Casing (13 3/8 & 9 5/8)

Liner (7 & 5)Hung inside the previously
run casing

Cementing a well
Once casing is run, it will be cemented into place.
Cementing helps:

Bond the casing to the formation

Protect any producing formations
In the control of blowouts
Seal off troublesome zones
Provide support for the casing

Well Logging and Testing

Well Logging and Testing

Orinoco Extra heavy Ol

Can be produced on cold?

Source Internet Various,Also Baker Hughes Inc.

Well Logging and Testing

Separators

Skid Unit
Pay Zone
Flares
X masstree

Shaped Charges

How much fluids

Gas
Ol
Water
What quality
What pressure

Well Head

Fluid Sampling Analysis

Phase Diagram

Chromatographic

Reservoir Characterization

Geophysicist
Geologist
Geochemist
Reservoir Engineer
Production Engineer

Source Internet

Static Model
Dynamic Model
Volumetric OIP
Well Planning
Updated Reserves
Production Optimization

Completion and Production

Environmental Management
Fluid Environmental Services
Control

Limpieza de
Tanques

de

Control
Slidos

Control of solids in Mud

Centrifuge
Selective Flocculation

de

Control
de
Slidos

Mud dehydration
Procesamiento
Slidos
Cortes

de

Procesamiento
de
Lquidos

Central de
Procesamiento

Disposicin de
Desechos

Re-inyeccin de
cortes y
Transporte

Decantation
Flocculation
Chemical mixing
Centrifugation
Dilution

Solids disposal

Liquid Treatment
Mud Dehydration
Water treatment
Chemical mixing
Fluids Transfer
Disposal

Problems while drilling

CPF Central Processing Facilities

In the Oil and Gas industry, CPF belongs to the Upstream activity to described the
production unit performing the first transformation of the crude oil or raw natural gas
after the production wells.
Collect the production of the different well pads in a centralized facility
Condition raw oil crude and and natural gas to be sent to the refineries
Condition production water to be environmentally under specifications

2.4 million BWPD

65,000 bpd
(250,000 bopd)

320,000 bpd
500,000 bpd

1.2 million bpd

320 million scfd

Industry Standards

API
ANSI
ASME
BS
GOST
IEEE
ISO
MIL
MSS
NFP
NTC
OSHAS
UL
Ecopetrol
Exxon

Deep Water Horizon Safety

Deepwater Horizon explosion and blowout

An explosion on the drilling rig

Deepwater Horizon occurred on April 20,
2010, killing 11 workers.
The Deepwater Horizon sank on April 22,
2010, in water approximately 5,000 feet
(1,500 m) deep, and was located resting
on the seafloor approximately 1,300 feet
(400 m) (about a quarter of a mile)
northwest of the well.
Source Internet Various

Rig Systems Safety - Piper Alpha

Piper Alpha was a North Sea oil
production platform .
The platform began production
in 1976, first as an oil platform
and then later converted to gas
production. An explosion and
the resulting oil and gas fires
destroyed it on 6 July 1988,
killing 167 men, with only 61
survivors.

Source Internet Various

Chemical Industry Safety -Bhopal

1984

El desastre de Bhopal, ocurrido en 1984 en

la regin de Bhopal (India), se origin al
producirse una fuga de isocianato de metilo
en una fbrica de pesticidas.
Se estima que entre 6.000 y 8.000 personas
murieron en la primera semana tras el
escape txico y al menos otras 12.000
fallecieron posteriormente como
consecuencia directa de la catstrofe,
que afect a ms de 600.000 personas,
150.000 de las cuales sufrieron graves
secuelas..

De Wikipedia, la enciclopedia libre

Colombia - Overview