Oil & Gas Production

The Future is Bright

Where I Am Coming From:
● Oil & Gas Background
- Geologist & Geophysicist
- Enhanced Recovery
- Technological Approach

● Energy is the Basis of Civilization

● Resource is Adequate
- Insufficient Investment
- Geopolitical Questions

● Can Provide Energy & Protect the

Environment

● Hydrocarbons Are Our Major Energy

Source Through the Middle of this
Century
A Barrel of Crude Provides:

Gasoline - 19.5 gallons

One Barrel =
42 gallons Fuel Oil - 9.2 gallons

Jet Fuel - 4.1 gallons

Asphalt - 2.3 gallons
Kerosene - 0.2 gallons
Lubricants - 0.5 gallons
Petrochemicals,
other products - 6.2 gallons

American Petroleum Institute,

1999
18
61

$100.00

$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00

$0.00
-6
18 9
70
-7
9
18
80
-8
9
18
90
-9
9
19
00
-0
9
19
10
-1
9
19
20
-2
9
19
30
-3
9
19
40
-4
9
19
50
19
60
-6
9
19
70
-7
9
19
80
-8
9
19
90
-9
9
20
00
-0
5
Crude oil prices since 1861
Energy Usage: 1750-2000
An Energy Dependent Civilization ?
Internet
Micro-processor
Environmental issues
Modifiers
Satellite

ar
WWII

c le
Energy Usage

WWI

Nu
Telecommunications
ons
rb
Hydroca Living
standards

Steam Steam Power Air Population Global

locomotive stations travel growth markets

Internal combustion engine

Drivers
1750 1800 1850 1900 1950 2000
Cook and Sheath, 1997
Moving Greater H/C Energy Systems
Peak Oil (Hubbert Theory)
Projected World Oil Supplies

Laherre’re, 2000
Projected World Energy Supplies
Hydroelectric

New Technologies
1993
100
100 BILLION
BARRELS Solar, Wind
Geothermal
80
Billion World Energy Demand
Barrels Nuclear Electric
of Oil Coal
Equivalent 60
per Year
(GBOE) Natural
40 Gas

Fossil Fuels
Decreasing
Crude Oil
20

1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 3000
after Edwards,
AAPG 8/97
Distribution of proved (oil) reserves 1984,1994, 2004

BP Statistical Review of World Energy 2005 1

0
Oil reserves-to-production (R/P) ratios

BP Statistical Review of World Energy 2005 1

1
Oil Price
 World proved oil reserves: 1994, 2004 and 2014 (Percentage)

BP Statistical Review of World Energy 2015 © BP 2015

 Oil reserves-to-production (R/P) ratios (Years)

2014 by region History

Middle East
S&CAmerica

North America
Europe

BP Statistical Review of World Energy 2015 © BP 2015

US Crude Oil Reserve
Energy Consumption in Germany
Oil and Gas Requires Investment

Catch – About 50% of the daily volume in 10 years is not online.

At present, requires approximately $100 billion a year.
Energy Production is High-Tech Science

● Multiple Discipline Professionals evaluate “Mountains” of data to

maximize reservoir recovery.

● The extraction process is based primarily on

- management of the pressure and fluids
- placement of wells to maximize efficiency.
-
● Historically,
- Traditional “pumping” technologies extracted 20 percent of
hydrocarbons in a reservoir
- New Computer Models and technologies improve recovery to
greater than 35 percent (75% Goal).

● This Science Continues to Improve with new breakthroughs

 Data Models for Energy Recovery

● Data Models are collected

utilizing seismic readings.
● Computer Models are put in
place to view these
readings in a 3D Model
● Data is collected over time
intervals for a 4D view of
the data and changes over
time
● Data sets are in Terabyte
range with future
projections in Petabyte
range as information View of 3D Seismic Data

improves
 Key Technologies

Deep-
water,
Sub-sea,
FPSO

Horizontal
3D Seismic,
Drilling,
Computer
Geosteering, &
Assisted
Rotary Steering
Exploration
Systems

Source: Bates, 2002, GCAGS

Baker Hughes
Oil Sands - In Situ Deposits
● 80% of resource in situ SAGD Process

Oil Production
● too deep to mine Steam Injection

● current in situ production

of 325,000 b/d bitumen +
diluent for pipeline
Steam
Chamber

● new technology Steam Injection

developments:
- cyclic steam stimulation
- Steam Assisted Gravity Oil Production
drainage (SAGD) Reservoir
- VAPEX, MSAR
Source: PetroCanada
Atmospheric Concentration of CO2
1000 Year History
380 D57
D47
360 Siple
Concentration of CO2 PPM

South Pole

340 How much of

change is natural
versus mankind’s
320 use of fossil
fuels?

300

280

260
800 1000 1200 1400 1600 1800 2000
Years Cook and Sheath, 1997
CO2 Emissions – Real Issue

Economic Model Projections of

Global CO2 Emissions (No Kyoto)

Other Mideast & OPEC

India

China
Canada
Australia, NZ Russia & EE
W. Europe
USA
Japan
1990 2050 2100