BASICS OF OIL AND GAS

SYSTEMS
BY. MR. MARK KAROKORA, BSc

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 COURSE OUTLINE

• Development of Oil and Gas

• Oil and Gas source rocks
• Main types of hydrocarbons
• Phase behavior
• Oil and Gas systems
• Properties of Oil and Gas
• Initial fluid distribution: 2
 DEVELOPMENT OF OIL AND GAS
• Key concepts and definitions.
• Petroleum:
• Refers to all solid, liquid and gaseous hydrocarbons existing in their natural state in the
subsurface strata/formations as well as other substances produced in association with such
hydrocarbons.
• Petroleum hydrocarbons: There are three physical states of petroleum hydrocarbons.
1. Gases: These include methane, ethane, propane, butane + others
2. Liquids. The liquid component of petroleum is called crude oil. crude oil is the unrefined state
of oil (oil form as it comes out of the ground). It is refined to derive petroleum products such as
gasoline and diesel fuel
3. Solids. These include coal, kerogen, gas hydrates (ices of gas) and Visco-plastic solids e.g. tar
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and asphalt
 OIL AND GAS RESERVOIR
OIL RIG USED FOR DRILLING 4
• DEVELOPMENT OF OIL AND GAS

➢petroleum operations: covers activities pertaining to drilling, production, transportation and

storage of hydrocarbons offshore and onshore.
➢Petroleum industry: Is divided into three main streams with different requirements for operation
management
1. Upstream
2. Midstream
3. Downstream

• UPSTREAM OIL INDUSTRY.

➢Involves all activities related to exploration of new reserves(Oil and Gas) and production
(extraction) of crude oil and natural gas.
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➢ These activities involve the following.

• Petroleum exploration
➢ Involves techniques by which geologists and geophysicists search for geologic structures that may
be good places to drill for oil and gas.
1. Geological studies. This involves the identification of areas with favorable geological
conditions. Geology involves the study of the earth by direct observations on rocks either from
surface exposures or from boreholes and the deduction of it’s structures, composition and historical
evolution by analysis of such observations.
➢Contour maps.
o Are one of the most effective means of displaying information about the geologic structure (i.e.
the degree of buckling and faulting of the layers) of an area.
o A contour is a line on which every point is at the same level above or below a chosen reference
surface. In most maps the reference surface is sea level. Such maps are used to illustrate the size,
shape and location of geologic structures.
➢Surface maps.
o In some areas, the presence of subsurface geologic structures, especially anticlines, is evident at
the surface. In such a case, geologists can search for anticlines by studying topographic maps
and air photographs, and by going into the field and studying the rock layers that are exposed
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(i.e. outcrops) at the surface.

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CONTOUR MAP M
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2.Geophysical surveys: Geophysics uses the methods of classical physics to obtain a “geophysical
image” of the subsurface. For every standard physical property, there is a corresponding
geophysical technique, e.g
✓ • Density ↔ Gravity method,
✓ • Magnetic susceptibility ↔ Magnetic method
• Electrical conductivity ↔ Resistivity or EM methods
✓ • Velocity & density ↔ Seismic method
Geophysical surveys can generally be classified into two:
I. Reconnaissance surveys, which are run to define broad areas of interest that contain the
thick sedimentary layers that have the potential to contain hydrocarbon traps.
II. Detailed surveys which are conducted to locate individual geologic structures which can then
be drilled. 8
• The gravity and magnetic surveys can be done as reconnaissance type surveys. Magnetic
surveys are often done from an airplane flying a grid pattern over a large area (Aerial
surveys). These “aeromagnetic” surveys define the areas where sedimentary rock is thick enough
to warrant further, more detailed work.
• Gravity and magnetic surveys are also frequently done from ships to find sedimentary basins in
offshore areas(seas, oceans, lakes). Once again, these surveys would be followed up by a more
detailed type of survey before well locations could be chosen.
• Magnetic surveys.
➢The magnetic properties of basement rocks create distortions and anomalies in the earth’s
magnetic field. These are measured on an instrument called a magnetometer
➢The magnitude of these anomalies as measured at the surface, is proportional to the depth of
burial of the basement rocks.
➢If the basement rocks are close to the surface, the magnetic distortions are stronger. When the
basement rocks are buried deeper, the magnetic distortions seen at the surface will be weaker.
➢When a geophysicist takes magnetic measurements throughout an area, he can estimate the 9

geologic structure of the basement rocks, as well as the thickness of the sedimentary cover rocks.
MAGNRTOMETER

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GRAVIMETER
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• Gravity surveys.
➢Done using gravimeters, Variations in gravity readings are related to rock density distribution
with in a basin.
➢Gravity highs are associated with rock of high density, hence very thick basement rocks with high
elevation(close to the surface) and small thickness of accumulated sediments. Low gravity values
represent high thickness of low density rocks such as sediments with low elevation of the
basement rock (deeply buried)
➢ The geophysicist is able to make a map (gravity map) that will show the structure of the
basement rocks which may be thousands of meters below the surface.
• Seismic surveys.
➢Seismic surveying involves sending sound waves down into the ground and recording the echoes
that bounce back off the various sedimentary layers. Can be categorized as onshore or offshore
seismic surveys.
I. Onshore Seismic surveys: Are the most common geophysical technique for obtaining the 12

detailed geologic structural information needed to pick well locations.

➢The sound or shock waves are generated by; setting off small explosive charges just below the
surface (dynamite); hitting the ground with a heavy weight; or shaking the ground using large
vibrator trucks(Vibroseis trucks).
➢The echoes returning from the subsurface are detected by sensitive instruments called geophones
which are strung out along the ground in a straight line. The geophones are connected by
electrical cables to a recording system.
II. Off shore seismic: Hydrophones are used instead of geophones. The hydrophone is used to
detect echoes returning from the underground layers under the sea bed.
➢The hydrophones, which are essentially underwater microphones, are attached to a buoyant
cable and towed behind the ship.
➢The shock waves are generated by a high pressure air gun towed near the back of the ship.
• Generally geophysical data is acquired, processed and interpreted to give a visual
understanding of the underground formations that may contain oil and gas. Seismic data is
acquired through seismic surveys, processed into seismic sections that are letter interpreted
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through geomodeling to create subsurface models of the petroleum reservoir systems.

 OFFSHORE SEISMIC ACQUISITION

VIBROSEIS TRUCK

DYNAMITE

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LAND SEISMIC ACQUISITION

SEISMIC SECTIONS (GEOPHYSICAL
SUBSURFACE IMAGES)

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3. Exploratory drilling.

• Done after finding promising geological structures. Verifies the presence or absence of a
hydrocarbon reservoir and quantifies the reserves. Involves drilling wells into the geologic
structure.
• The overall objective of drilling is to bore a hole (the well bore) into the ground until a target
rock formation is penetrated, that has been identified by the geologists and geophysicists as
having the potential to contain commercial hydrocarbons.
• A wild cat well. Is a well drilled into a geologic structure in which no oil or gas has yet been
discovered before. We will be attempting to discover a new oilfield.
• Drilling wells is an expensive and risky business. The costs can run into millions of dollars and the
chance of success for wildcats is only about one in ten.
• The drilling team is comprised of the drilling engineer, driller, tool pusher, derrick man and rotary
helper. Drilling rig is the equipment that is used to drill the well it is comprised of various
components. 16
DRILLING RIG

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 DRILL BITS DRILL PIPES

ROTTERY HELPERS
BLOW OUT PREVENTERS (BOPs) GENERATORS

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4. Appraisal
This is the phase that determines if the reservoir is economically feasible to develop
• Delineation/Appraisal wells. Wells drilled to determine the extent or size of the oil field when a
geologic structure with oil is discovered.
• Drilling is done using a drilling rig and a drilling personnel/crew.
5. Development and production:
• Production wells produces oil and gas from the reservoir through formation pressure, artificial lift,
and possibly advanced recovery techniques, until economically feasible reserves are depleted
• Development wells. The objective, at this stage, is to get the maximum amount of oil out of the
ground with the minimum number of wells.
6. Decommissioning and rehabilitation/ abandonment.
• Wells are plugged in, installations are demolished or removed and the site is restored.
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 MID-STREAM
• The midstream sector involves the transportation, storage and marketing of various oil and gas
products.
• Depending on the commodity and distance covered, transportation options can vary from small
connector pipelines to massive cargo ships (Oil tankers) making trans-ocean crossings, rail or
trucks.
• While most oil can be transported in its current state, natural gas must be either compressed or
liquefied for transport.
• Storage: Petroleum products are stored in storage tanks. Natural gas is often stored in
underground facilities such as salt domes and depleted reservoirs.

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• Oil and gas transportation
➢Pipelines: There are three major types of pipelines along the transportation route: the gathering
system, the interstate pipeline system, and the distribution system.
I. The gathering system: consists of low pressure, small diameter pipelines that transport raw
natural gas from the wellhead to the processing plant.
II. Interstate pipelines: They carry Oil/ natural gas across state boundaries, in some cases clear
across the country.
III. Intrastate pipelines: Transport natural gas within a particular state.
➢ LNG tankers and Oil Tankers(ship transportation): These are bulk cargo ships which require
unique design and materials to handle and transport Oil and very low-temperature gas between
states and continents.

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• Natural gas storage and oil storage
I. Underground storage for natural gas:
1. Depleted gas reservoirs. Are those formations that have already been tapped of all their
recoverable natural gas. This leaves an underground formation, geologically capable of
holding natural gas.
2. Salt Caverns: These are created in salt domes or salt beds underground. Are made by using
water to dissolve and extract a certain amount of salt from the deposit, leaving a large empty
space in the formation, this process is called salt cavern leaching. This space can be used to
store natural gas.
II. Liquified Natural gas storage tanks
III. Oil storage tanks

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OIL TANKER

OIL STORAGE TANKS

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• DOWNSTREAM
• The downstream sector involves the refining and processing of hydrocarbons into usable products
such as gasoline, jet fuel and diesel. And also marketing and selling these products.
• Refining is required since "raw" hydrocarbons extracted from the ground are rarely useful in
their natural form. Marketing of these products is done at this level.

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OIL AND GAS SOURCE ROCKS

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