Exploration and reservoir

description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Pre -
concession
work

Concession
round
Licence
Exploration

award

Exploration
Discovery

Appraisal
and
Project
planning
sanction

Project
execution
Project development

Start
production

Operation
and
End maintenance
production
Operation

Abandonment
and removal
work processes, phases and milestones
Exploration and Production (E&P)

General geological information, seismic interpretation, analogues and drilling

 Peak oil – Hubbard curve
• Peak oil is the point in time when
the maximum rate of petroleum
production is reached, after which
the rate of production is expected
to enter terminal decline.

• The total production rate from an

oil region over time usually grows
exponentially until the rate peaks
and then declines—sometimes
rapidly—until the field is depleted.

• This behavior is described by the

“Hubbard curve”, and has been
shown to be applicable to the sum
of a nation’s domestic production
rate, and is similarly applied to the
global rate of petroleum production
 Operational indicators for a project portfolio
Operational and financial indicators for measuring critical success factors are prepared
in connection with the planning process in oil companies and constitute an important
element of their corporate plan.
If there is a stop in supply of new fields, a sharp production decline will take place!

Production from different fields

Portfolio production

 RoCE – Return on Capital Employed

 Production
 Production costs
 Finding & Development costs
Production

 Reserve Replacement Rate (RRR)

 Reserve to Production ratio (RP ratio)

Time
Reserves, production, supply

p
 R = reserves
 p = production rate
 f = supply rate
(maximum (technical) production rate: p = k R )
 RRR = f/p = reserve replacement rate
 R/p = reserves to production ratio
 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Seismic surveys

In reflection seismology, a bright spot is a local high amplitude seismic attribute anomaly
that can indicate the presence of hydrocarbons and is therefore known as a direct
hydrocarbon indicator

Base Cretaceous Unconformity

 2D SEISMIC Illustration of 2D seismic
Source Single streamer with
hydrophones

Principle of
2D acquisition

P = Pressure waves
S = Shear waves

Survey lines often

kms apart

Seismic
section

2D seismic: A vertical section of seismic data consisting of numerous adjacent traces

acquired sequentially. A group of 2D seismic lines acquired individually, as opposed to the
multiple closely spaced lines acquired together that constitute 3D seismic data.
 3D SEISMIC
Illustration of 3D seismic
Source Multiple streamers Close spacing between
streamers (10s m apart)
allows data to be represented
as seismic cubes

P = Pressure waves
S = Shear waves

3D seismic: A set of numerous closely-spaced seismic lines that provide a high spatially sampled
Principle of 3D acquisition Seismic cube
measure of subsurface reflectivity. 3D seismic data provide detailed information about fault
distribution and subsurface structures.
 4D SEISMIC
Illustration of 4D seismic

1985

1999

4D seismic: Three-dimensional (3D) seismic data acquired at different times over the same area
to assess changes in a producing hydrocarbon reservoir with time. Changes may be observed in
fluid location and saturation, pressure and temperature.
 Ocean bottom
Illustration (4C) seismic
of ocean bottom (4C)
seismic
Hydrophone X Y Z

4C seismic: Four-component (4C) borehole or marine seismic data are typically acquired using
three orthogonally-oriented geophones and a hydrophone within an ocean-bottom sensor
(deployed in node-type systems as well as cables
Permanent reservoir monitoring
- Snorre field

• The goal for this system is

to improved oil and gas
recovery
• Better understanding of the
field due to frequent use of
4D seismic
• Give a picture on
movement of oil, gas and
water in the reservoir over
time
• Identify remaining
resources
• Decide on water and gas
injection
• Ensure more optimal
drilling targets
Exploration – Visualizing and testing
the subsurface

• Geological information
• Analogues with similar areas
• Creativity
• Seismic interpretation
• Results from drilling
• Commercial valuation
• Risk Assessment
• Element of luck !
 Drilling and logging
• The only way to confirm whether a structure does contain oil or gas is
to drill a well
• Confirms the presence of hydrocarbons
• Provides additional information for further exploration and field development planning

• Rock cuttings, core samples and geophysical data from well surveys are
used to gain information from wells
• Rock cuttings brought to the surface by drilling mud and specially taken core samples
• Enable geologists to understand the geological history and the nature of the reservoir.

• Key physical properties of the rocks drilled are obtained from wireline logs
• Drilling is halted and a recording device known as a ‘sonde’ is passed down the bore hole
on an electric cable
• Formation data can also be measured during drilling with special downhole tools in the
drill-string (measuring the electrical, acoustic and radioactive properties of the rocks)
• Presence of hydrocarbons can be detected and information collected on the different
formations
Well testing

• If a well finds oil or gas, additional insight into reservoir properties and well
performance under operating conditions can be obtained from a flow test

• Depending on such issues as the value of information gained and environmental

constraints, this could be a short Drill Stem Test (DST) or a longer test using
temporary production facilities for an Extended Well Test (EWT)
Exploration drilling – some definitions

Wildcat well
• The first well to test a new, clearly defined geological unit
(prospect). "Find new oil"

Appraisal well
• A well drilled to establish the extent and the size of a
discovery. "Delineate old oil"

The purpose of an appraisal well is normally linked to the following aspects:

1. To confirm in place volumes
2. To determine production characteristics
3. To optimize the development.
Number of Appraisal wells
Exp.well Appraisal
P90
Mean
P10
How many exploration wells are drilled?
Exploration wells spudded on the NCS 1970–2017
Gross resource growth and number of
wildcats 1990-2017
 Two key tools finding oil – well data & seismic data

Petrophysics is an essential discipline!

 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Exploration costs as a percentage
of investment costs
NCS 1990-2010

30
Exploration/Investments, percent

25

20

Average 14,1 percent

15

10

0
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010
• Exploration and drilling costs vary a lot (marked
situations drilling rigs, complexity of wells, etc.
• A well may cost in the range of 500 mill NOK
Oil price, number of companies on the shelf and spudded
exploration wells at year end, 2000-2017

The amount of money that oil companies are willing to spend on

exploration is closely related to the oil price!
 Accumulated costs during exploration
and appraisal

Year 1 Year 2 Year 3 Year 4

Licence award
Administration
Seismic surveys
Exploration wells
Appraisal wells
Technical sudies
Drill? Continue or stop? Develop?
350

300
Accumulated costs (mill.USD)

250

200
Start development

150

100
Discovery
50

0
 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Geology
• Geology is the science of the solid earth – its history, structure,
composition, and the processes that continue to change it.

• Geology provides primary evidence for plate tectonics, the

history of life and evolution, and past climates.

• Petroleum geology refers to the specific set of geological

disciplines that are applied to the search for hydrocarbons
 Subsurface disciplines
Reservoir
Seismic Play & modelling
acquisition & prospect- Geological reservoir
processing evaluation modelling &
Seismic data Prospect uncertainty analysis
acquisition analysis Production geology
Seismic
processing
Petrophysics
Seismic Structural Seismic & well Petrophysics
interpretation geology sequence stratigraphy and fluid-rock
analysis Structural & sedimentology analysis
Seismic geology & Sedimentology Core analysis
interpretation tectonics &Sequence
Seismic LFP stratigraphy
Biostratigraphy
Reservoir
Basin analysis simulation
Geo & geochemistry Reservoir
operations Basin modelling Drainage strategy simulation
Operations and geochemistry Drainage
geology and data Petrology strategy
acquisition Reservoir
technology
At Svalbard you will see rocks protruding through the ice that you
normally just find under the seabed, which is very special.
 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Basin analysis

• Basins are large scale areas of the Earth’s crust

• With a long history of subsidence
• Were a thick sequence of sediments has accumulated
• Basin analysis involves making an interpretation of the formation, evolution,
architecture and fill of a sedimentary basin by examining geological parameters
• Basin analysis extrapolates information from known regions into unknown regions
in order to predict the nature of the basin
Geo-seismic section through the
North Sea Basin – Viking Graben
The presence of hydrocarbons
Presence of hydrocarbons indicates that six independent requirements
have been met;

1. there must have been a source rock rich in organic carbon to be

converted to hydrocarbons
2. there must have been sufficient heat over long periods of time to
convert the organic carbon into hydrocarbons
3. there must have been migration pathways to enable the hydrocarbons
to migrate upwards from the source rock, and perhaps, reach a trap
4. there must be a suitable reservoir rock with sufficient porosity to store
the hydrocarbons
5. there must be an effective seal of impermeable rock, such as clay,
shale or salt, above and against the reservoir
6. there must be a closed structure, a geometric disposition of the
reservoir and a seal to arrest the upward migration of the hydrocarbons
 Illustration of how oil and gas
reservoirs are formed

1. Source rock
2. Sufficient heat
3. Migration pathways
4. Reservoir rock
5. Seal
6. Closed structure or trap
Illustration of how oil and gas
reservoirs are formed
 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Exploration concept
• Sedimentary basin: A depression
filled with sedimentary rocks

• Petroleum system: A petroleum

system within the basis comprise
mature source rock, migration
Basin routes, reservoir rock, trap and seal
Play
• Plays: Localized collection of
Prospect reservoir opportunities with similar
combinations of source, migration
Discovery routes, reservoir, trap and seal

• Lead: Interesting reservoir

structures within a play (rough
indication of a prospect)

• Prospect: Lead which has been

fully evaluated/mapped and may be
ready for drilling

• Discovery: Discovery of
hydrocarbons after drilling a
prospect
 Scale of analysis
Screening and Ranking Overview (RWPS)
Screened Basins

80°N 80°N

180°W

40°N
180°E

Global Basin Screening 0°N 0°N

180°E
40°S

Screened
180°W
arcmap20030314_kruud_RWPS_World_Screening_Ranking_Overview_Screened_A3.mxd
Basins Screened (642) Projection: World_Winkel_Tripel_NGS
mapdata@statoil.com

180°W 140°W 100°W 60°W 20°W 20°E 60°E 100°E 140°E 180°E

Basin Analysis

Play Analysis

Prospect Analysis
 Play elements mapping

Reservoir Source Seal

•Presence •Presence •Presence

•Quality •Quality •Capacity
•Maturation
•Migration
•Timing
 Play and Prospect Probabilities
PLAY
P(Reservoir): The probability of
occurrence of reservoir on a regional
scale.
P(Seal): The probability of occurrence of
a regional top seal, capable of preventing
hydrocarbons from upward migration.
P(Source): The probability of occurrence
of a rock unit that can generate oil or gas
in sufficient quantity to form one or more
accumulations within the play.
PROSPECT
P(Reservoir): The probability of
occurrence of reservoir with effective
porosity/permeability, capable of holding
hydrocarbons above a specified minimum
volume in the prospect.
P(Trap): The probability of occurrence of a
structural or stratigraphic configuration that
provides a trap for migrating
hydrocarbons.
P(Source): The probability of presence,
quality and maturity of source rocks in the
drainage area of the prospect, sufficient
migration of hydrocarbons into the trap
and of in-reservoir biodegradation.
 PLAY RISK : Critical Risk Maps
(Traffic Light Maps)
SEAL RESERVOIR SOURCE

Individual Components : Green area: Favourable

•Seal Yellow area: uncertain

•Reservoir
•Source Red area: Unfavourable
PLAY RISK : Critical Risk Maps
(Traffic Light Maps)

Reservoir

Source =

Seal
PROSPECT ANALYSIS : Risking
Probability
Evaluation
Example :
P(Reservoir) P(res) = 0,7
P( p l a y ) = 0 ,3 8
P(Seal) P(seal) = 0,9
P(Play)

Chance for a working

play (somewhere)
P(Source) P(source)= 0,6
Unconfirmed play

P(Reservoir) P(res) = 0,9

P(Prospect)

P( p r o s p e ct ) = 0 ,4 3
P(Trap) P(trap) = 0,6 Chance for a prospect success
Given that the play works

P(Source) P(source/charge)=0,8
P( d i sco v e r y ) = 0 ,1 6
P(Discovery)
 Probability of Geological Success (Pg)
• We estimate the probability that the key geological parameters are present

Ptrap (incl. seal)

(presence & timing)

Preservoir
(presence &
quality)

Psource
(presence &
migration)

• Probability of geological success

• Pg = Psource x Preservoir x Ptrap
Illustration of types of traps
Illustration of types of traps
Faults - earth quake is natural

A normal fault; one of the dominant structures of sedimentary basins

 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Reservoir
• A reservoir is a subsurface body of rock having sufficient porosity and
permeability to store and transmit fluids.

• Sedimentary rocks are the most common reservoir rocks because they
have more porosity than most igneous and metamorphic rocks

• A reservoir is a critical component of a complete petroleum system.

 An accumulation of hydrocarbons

Sea bottom

Impermeable rock (seal)

Gas

Oil

Water

Permeable reservoir rock Migration

Source rock

In geology, rock or stone is a naturally occurring solid aggregate of minerals. The Earth's
outer solid layer, the lithosphere, is made of rock.
In general rocks are of three types, namely, igneous, sedimentary and metamorphic.
 Petrophysics
the study of the physical properties of rocks.

For a rock to form a reservoir:

a) It must have a certain storage capacity (it must have many tiny spaces or
pores): This property is characterized by the porosity.

b) The fluids must be able to flow in the rock (the pores must be connected):
This property is characterized by the permeability.

c) It must contain a sufficient quantity of hydrocarbons, with a sufficient

concentration: The impregnated volume is a factor here, as well as the
saturations.

The methods used to characterize reservoir rocks are essentially core

analysis and well logging.
Reservoir Rocks
The main reservoir rocks are made up of:

•sandstones
•carbonates

These are sedimentary rocks, in other words rocks made up of

sediments formed at the earth's surface by debris (mineral, animal and
vegetable) or chemical precipitations.

They are stratified in successive beds.

 1. Igneous rocks
Igneous rocks are the first great class. "Igneous" comes from the Latin for fire, and all igneous rocks began
as hot, fluid material. This material may have been lava erupted at the Earth's surface, or magma
(unerupted lava) at shallow depths, or magma in deep bodies (plutons). Rock formed of lava is called
extrusive, rock from shallow magma is called intrusive and rock from deep magma is called plutonic.

The two best-known igneous rock types are basalt and granite, which differ in composition. Basalt is the
dark, fine-grained stuff of many lava flows and magma intrusions. Its dark minerals are rich in magnesium
(Mg) and iron (Fe), hence basalt is called a mafic rock. So basalt is mafic and either extrusive or intrusive.
Granite is the light, coarse-grained rock formed at depth and exposed after deep erosion. It is rich in
feldspar and quartz (silica) and hence is called a felsic rock. So granite is felsic and plutonic.

basalt granite
 2. Sedimentary rocks
Sedimentary rocks are the second great rock class. Whereas igneous rocks are born hot, sedimentary rocks are
born cool at the Earth's surface, mostly under water. They usually consist of layers or strata, hence they are also
called stratified rocks. Depending on what they're made of, sedimentary rocks fall into one of three types, Clastic,
Organic and Chemical Sedimentary Rocks.

Clastic: The most common set of sedimentary rocks consist of the granular materials that occur in sediment: mud
and sand and gravel and clay. Sediment mostly consists of surface minerals — quartz and clays — that are made
by the physical breakdown and chemical alteration of rocks. Sand and mud is carried down rivers to the sea,
mostly. Sand is made of quartz, and mud is made of clay minerals. As these sediments are steadily buried over
geologic time, they get packed together under pressure and low heat, not much more than 100°C. In these
conditions the sediment is cemented into rock: sand becomes sandstone and clay becomes shale.

Organic: Another type of sediment actually forms in the sea as microscopic organisms — plankton — build shells
out of dissolved calcium carbonate or silica. Dead plankton steadily shower their dust-sized shells onto the
seafloor, where they accumulate in thick layers. That material turns to two more rock types, limestone (carbonate)
and chert (silica).

sandstone shale limestone

 3. Metamorphic rocks
Metamorphic rocks are the third great class of rocks. These are what
happens when sedimentary and igneous rocks become changed, or
metamorphosed, by conditions underground. The four main agents that
metamorphose rocks are heat, pressure, fluids and strain.

Quartzite Marble Gneiss

 Porosity
A rock sample is considered. Its apparent
volume or total volume VT consists of a
solid volume VS and a pore volume VP. The
porosity is:

f = VP/VT

It is often stated that the porosity is:

Low: if f < 5%
Mediocre: if 5% < f < 10 %
Average: if 10% < f < 20 %
Good: if 20% < f< 30 %
Excellent: if f > 30%

• Nearly all rocks and sediments contain openings called pores or voids, which come in all shapes and
sizes.
• The fraction of total volume occupied by pores or voids is called porosity. Materials containing a relatively
large proportion of void space are described as porous or said to possess "high porosity.“
• Porosity is measured in fraction between 0 and 1. Rocks typical have porosities between less than 0.001
for clay to 0.35 for sandstones.
Permeability
• Permeability is a measure for the movement of fluid/gas hydrocarbons)
through a poreous rock

• Permeability is controlled by grain size and sorting

Darcy's Law

Permeability can be determined by Darcy's Law, an experimental law

<1 mD: Very low

1 to 10 mD: Low
10 to 50 mD: Mediocre
50 to 200 mD: Average
200 to 500 mD: Good
Connected pores give rock permeability
> 500 mD: Excellent

NB.: in a porous medium, the permeability generally varies with the flow direction.
Permeability – Darcy’s law
 Permeability versus Porosity
Permeability (mD)

Porosity (%)
 Saturations
• In the pore volume Vp there may be found a volume Vw of water, a
volume Vo of oil, and a volume Vg of gas:

Vw + Vo + Vg = Vp

• The oil, water and gas saturations are expressed in percent:

Sw + So + Sg = 100 %.

• Knowing the volumes of oil and gas in place in a reservoir requires

knowing the saturations at every point, or at least a satisfactory
approximation.
 Viscosity
• A property of fluids and slurries that indicates their resistance to flow,
defined as the ratio of shear stress to shear rate.

• Poise is the unit for viscosity, equivalent to dyne-sec/cm2.

• Because one poise represents a high viscosity, 1/100 poise, or one

centipoise (cp), is used for measurements.

• One centipoise equals one millipascal-second.

• Viscosity must have a stated or an understood shear rate in order to be

meaningful. Measurement temperature also must be stated or
understood.
 Oil production depends on many
uncertain parameters
• The oil production is driven by the pressure
drop in the well
• The production rate will be dependent on
– Permeability
– Thickness of reservoir
– Viscosity
– Well Completion
• Good reservoir parameters will be
– High permeability
– Good reservoir communication
– High well productivity
– Thicker reservoir (deep water oil contact)
– Favorable saturation functions (mobile oil)
– Good fluid model (viscosity)

• Surprises must be expected

– Continuously improvements of data and models
 5. Exploration and reservoir
description
Reserve replacement Sedimentary basins and
petroleum systems

Finding hydrocarbons Plays, leads, prospects,

traps

Cost of exploration Reservoir description,

characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
 Prospect evaluation
• Prospect evaluation is a technical/economical calculation of the
expected value of a prospect.

• The calculated expected value is used as basis for decision making

(drill or not drill, buy or sell etc.)

• Prospect evaluation is a complex multidisciplinary task.

 Prospect evaluation
the main steps

Cost&schedules

Production profile Tax, price, tariff E(NPV)

Wells
Geology Reservoir Commercial Economy
Facilities
10 Questions
1. Define the reserves replacement rate
2. What is a basin?
3. What is a play and what is a prospect?
4. What is a trap? Name 4 types.
5. What is meant by migration?
6. List 6 requirements that must be satisfied if significant
volumes of hydrocarbons are to be found in a basin.
7. What is a well-testing and what is the purpose of it?
8. What is meant by 2D, 3D and 4D seismic?
9. What is the unit for quantifying permeability?
10. What is the purpose of prospect evaluation and what
are the main steps?