Introduction to the Petroleum Industry

Petroleum Engineering
Disciplines

Presenter: PHUNG DAI KHANH
Faculty of Geology and Petroleum Engineering
Ho Chi Minh City University of Technology
Acknowledgement is given to Prof. Peter Behrenbruch
for acceptance of using his lectures
Exploration Evaluation Drilling
Completion Production Separation
Treatment Transport Refining
Treatment Transport End Users
Introduction to the Petroleum Industry
Team Effort
Capital Cost
Operating Cost
Production Rate
Cycle Time
Risk
Reserves
Introduction to the Petroleum Industry
Petroleum Engineering:
RE - Reservoir Engineering
PT - Production Technology
DGP - Development Geophysics
DGL - Development Geology
RCV - Reservoir Characterisation
& Visualisation
PP - Petrophysics
TC&DM - Technical Computing
& Data Management
Facilities Engineering & Prod. Operations:
FE - Facilities Engineering
PO - Production Operations
ME - Marine Engineering
PE - Process Engineering
SE - Subsea Engineering
Exploration:
EGP - Exploration Geophysics
EGL - Exploration Geology
TC&DM - Technical Computing
& Data Management
EPM - Exploration Portfolio Mgmt
Information Technology:
TA - Technical Applications
DM - Data Management
IS - Information Systems
AP - Architecture & Planning
Drilling:
DO - Drilling Operations
DT - Drilling Technology
Functions and Disciplines
Introduction to the Petroleum Industry
Presentation Outline
Petroleum Engineering
Petroleum Engineering Disciplines

Development Geophysics and Geology

Petrophysics

Reservoir Engineering

Drilling Engineering

Production Technology (well completion)

Facilities Engineering and Production Operations

Economic Evaluation
Facilities
Wells
Reservoirs
Management
Introduction to the Petroleum Industry
Reservoir
Engineering
(fluid flow)
Drilling &
Production
Engineering
(Facilities)
Petrophysics
(rocks)
Economic
Evaluation
Computing
Petroleum
Geoscience
(development)
Petroleum
Engineering
Management
Development
Geology &
Geophysics
(seismic)
Introduction to the Petroleum Industry
Organisation of Petroleum Engineering
Exploration Facilities Eng Petroleum Eng Operations
Specialists
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Drilling Production
Planning Function
Introduction to the Petroleum Industry
Project
Phase
Field
Feasibility
Study
Project
Implementation
Field
Management
Field
Operation
Engineering
Enhancements
Appraisal
Major
Functions
Primary Project
Goals
Offshore Petroleum Development - Major E&P Phases
Project
Management
Exploration
Asset
Teams
Development
Asset
Teams
Production
Asset
Teams
Appraisal
R
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T
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Discovery
Primary
Secondary
Exploration
Petroleum
Engineering
Petroleum &
Facilities Eng
Exploration
Engineering
Petroleum
Engineering
Production
Engineering
Operations
Facilities
Discovery of
Substantial
Hydrocarbons
Proving
Sufficient
Volumes
Optimum
Development
Plan & Design
Efficient
Maximising
Net Present Value
(Production & Reserves)
Project
Construction
Facilities
Introduction to the Petroleum Industry
The Search for and Development of Hydrocarbons
Chronological Sequence (1)
Geology
and
Geophysics

Drilling and
Operations Engineering

Petrophysics



Production Geology /
Seismology

Economics

Production Technology

Reservoir Engineering
Select a concession
Select a location
Find new Hydrocarbons

Drill and test wells safety
and efficiently

Evaluate the formation and quantity the amount of HC
near the well


Interpret and extrapolate the well data to describe the
reservoir

Check whether the venture is economically justified

Design well completions and artificial lift systems

Identify development options and predict recovery

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Introduction to the Petroleum Industry
Engineering

Economics

Engineering


Drilling and
Operations Engineering

Production Geology /
Petrophysics

Production Operations


Production Technology


Reservoir Engineering
Estimate facilities costs eg. platforms, plant, pipelines

Select the most profitable development option

Design and construct facilities


Drill and complete wells safety and efficiently


Plan and evaluate wells
Update the reservoir model if required

Operate and maintain wells and surface facilities


Optimise production performance
Advise on chemical aspects of production

Monitor reservoir performance
Identify means to improve recovery
P
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Some of the disciplines involved in the discovery and exploitation of a hydrocarbon accumulation.
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The Search for and Development of Hydrocarbons
Chronological Sequence (2)
Introduction to the Petroleum Industry
Exploration
Introduction to the Petroleum Industry
Accumulation Conditions for Hydrocarbon Reservoirs
1. Kitchen
- Hydrocarbon Generation
- Migration

2. Trap
- Container (including Seal)

3. Reservoir Rock
- Reasonable Flow Properties
Introduction to the Petroleum Industry
Hydrocarbon Generation vs Depth
Depth range
km
.5


2


3.5


5
2


4


6


8
M
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M
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A
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D
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(
k
m
)

0


1


2


3


4


5


6
Generation Intensity
Biogenic
Methane
Wet Gas
Methane
300

250

200

150

100

50

0
600 500 400 300 200 100
Cano-
zoic
Mesozoic Paleozoic
Immature
Oil Generation
Gas Generation
P
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F
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T
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(
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Time (millions of years from present)
Oil
Introduction to the Petroleum Industry
Basic Hydrocarbon Traps
Unconformity Trap
Anticlinal Trap
Fault Trap
Buried Reef
Pinch Out
Grading Trap
Sand Lens
Salt Dome Traps
Unconformity
Surface
Sub-Salt
Sediment Truncation
Anhydrite
Introduction to the Petroleum Industry
You cant win em all !
My Reputation !
Introduction to the Petroleum Industry
Development Geology
Introduction to the Petroleum Industry
Development Geoscience Study Path
Seismic
Survey
Sections
Time Map
Seismic
Depth Map
Isochore
Map
Structure
Map
Sediment
Model
Regional
Geology
Pressure Data
Well Performance
Logs Cores
Well
Correlation
Description Analysis
Petrophysics
Evaluation
Pal Data Log Shape
O
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Reservoir Geological Model
I
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D
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Introduction to the Petroleum Industry
Framework Construction
Permeability Realisation Porosity Realisation
Facies Model Construction
Hing-1
Und-4
Und-2
Und-1
Trulek-1
Und-3
Bayu-1
Bayu-3
Bayu-2
Bayu-4
Mistral-1
Bayu-5
Hing-1
Und-4
Und-2
Und-1
Trulek-1
Und-3
Bayu-1
Bayu-3
Bayu-2
Bayu-4
Mistral-1
Bayu-5
Hing-1
Und-4
Und-2
Und-1
Trulek-1
Und-3
Bayu-1
Bayu-3
Bayu-2
Bayu-4
Bayu-5
Geological Modelling
Introduction to the Petroleum Industry
Development Geophysics
Introduction to the Petroleum Industry
Typical Marine 2D Seismic Acquisition Configuration
Seismic Recording
Introduction to the Petroleum Industry
05-DH-4P
AUGUST 1994 AREA MAP
BASEMENT DEPTH
(3D SEISMIC)
LEGEND
meter ss
JANUARY 1993 AREA MAP
BASEMENT DEPTH
(2D SEISMIC)
DAI HUNG
OIL FIELD
DAI HUNG-3
2
7
0
0
8 30'N 8 30'N
2km 0
3
2
0
0
3
4
0
0
3600
3800
3
6
0
0
3
8
0
0
4
0
0
0
3300
3
4
0
0
3
6
0
0
3
8
0
0
4
0
0
0
3
2
0
0
3
4
0
0
3
6
0
0
3
8
0
0
4
0
0
0
4100
3000
3100
3200
3600
3800
4
0
0
0
3
4
0
0
3
6
0
0
3
8
0
0
4
0
0
0
4000
DAI HUNG-1
DAI HUNG-2
JANUARY 1993 AREA MAP
BASEMENT DEPTH
(2D SEISMIC)
Introduction to the Petroleum Industry
Petrophysics
Introduction to the Petroleum Industry

Test Results
Fluid Properties
Pressures

Core
Lithology
Porosity
Permeability

Mudlogs
Measurement
While Drilling
Indications
Resistivity

Wireline
Logs
Resistivity
Radioactivity
Density
Sonic Velocity
Hydrogen Content

Geology
Lithology
Stratigraphy
Petrophysics
Lithology
Porosity
Hydrocarbon Saturation
Net Reservoir Thickness
Permeability
Oil In-Place
Petrophysics
Introduction to the Petroleum Industry
What is logging?
electrical sensors or
sondes
measure properties of rock
and wellbore
logs are the physical
record of these
measurements
logs are now recorded on
tape, but are generally still
presented on paper
Introduction to the Petroleum Industry
Reservoir?
T.D.
Shale
Dolomite
Anhydrite
Limestone
Rock Salt
Sandstone
Clay/Marl
No
Yes
No
No
No
Yes
Yes
Locate the Reservoir
Petrophysical Engineering
Introduction to the Petroleum Industry
Carbonates Carbonates
Sand0
Sand1
Sand2
Sand3
Sand4
Sand5
Sand6
Net = 44.7 mTV, Por = 18.0%
Sw= 39%
EHC= 4.96 mTV
Net = 27.1 mTV, Por = 17.6%
Sw= 38 %
EHC= 2.94 mTV
Net = 27.7 mTV, Por = 22.8%
Sw= 19 %
EHC= 5.09 mTV
Net = 33.0 mTV, Por = 22.1%
Sw= 22 %
EHC= 5.73 mTV
Net = 25.8 mTV, Por = 20.3%
Sw= 29 %
EHC= 3.70 mTV
Net = 11.9 mTV, Por = 20.1 %
Sw= 30 %
EHC= 1.66 mTV
Net =14.8 mTV, Por = 21.8 %
Sw= 31 %
EHC= 2.23 mTV
Net = 45.1 mTV, Por = 17.7 %
Sw= 44 %
EHC= 4.29 mTV
Petrophysical Analysis - Example
Introduction to the Petroleum Industry
Reservoir Engineering
Introduction to the Petroleum Industry
What is Reservoir Engineering?
The Reservoir Engineer:

Takes:

Applies:

with the:

Objective:

In practice:
data from many sources

the properties of rocks and fluids in reservoir simulation
models (also wells and surface systems)


of Optimisation of Hydrocarbon Ultimate Recovery (UR)

Reservoir Engineering provides:
PROPOSALS
and
PREDICTIONS
for
Well Numbers, Types, Locations, Rates
Introduction to the Petroleum Industry
Common sense is a gift of God - the engineer has only
technical training!

Introduction to the Petroleum Industry
page 22
Well Plan Production Profile
and Reserves
Production Policy
and Reservoir
Management
Number of wells
Well Type
Location
Subsurface Development Plan and Reservoir Simulation
Introduction to the Petroleum Industry
Drilling Engineering
Introduction to the Petroleum Industry
Horizontal Well Types
LONG
RADIUS
100 - 600m
400 - 1200m
600 - 1800m
MEDIUM
RADIUS
SHORT
RADIUS
2 - 6 / 30m
900 - 300m RADIUS
o
6 - 60 / 30m
300 - 30m RADIUS
o
60 - 150 / 30m
30 - 12m RADIUS
o
Reference:
Oil and Gas J ournal
11-March-1996 (OGJ Special)
Introduction to the Petroleum Industry
Reference: World Oil / July 1996 Page 68
Source: Philip C. Crouse and Associates, Inc. - 1996 * Estimate
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996*
0
500
1,000
1,500
2,000
2,500
3,000
Year
N
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b
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o
f

W
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s

Worldwide Horizontal Well Statistics
Introduction to the Petroleum Industry
Multi-lateral Wells
Technological progress similar to horizontal
wells
Completion technology is in its infancy
Expensive and complex in most instances
Should be evaluated on ENPV basis
Higher risk (than conventional
vertical/deviated wells)
Identifying selectively requirements is the key
Improved Recovery
Increased wellbore to reservoir contact
Intersect more fractures
Improve gravity drainage
Reduce gas and water migration

Lower Cost/Barrel
Well construction (one main wellbore)
Surface equipment (small platform, fewer
wellheads)
Introduction to the Petroleum Industry
Production Engineering
and Technology
Introduction to the Petroleum Industry
Production Technology
Production Geology Petrophysics
Drilling Engineering Reservoir Engineering
Subsea Engineering
Production Operations
Facilities Engineering
Introduction to the Petroleum Industry
Gas
Tank Gas
(Low Pressure)
removed
Stock Tank
Pressure
Reservoir Pressure
Oil produced
as Single
Phase
Bottom Hole
Pressure
High Pressure
Gas removed
Choke
(Bean)
Flowline
Pressure
Tubing Head
Pressure
Wellhead Separator Stock-Tank
Gas
Oil
Oil
Oil Zone
Production System
Reservoir
Well
Introduction to the Petroleum Industry
Petroleum Engineering Responsibilities


Reservoir
Characterisation






Reservoir
Development
Geophysics

Geology

Petrophysics


Production
Technology

Reservoir
Engineering

Petroleum
Economics
- Large Scal Description

- Large Scale Description

- Localised Quantification


- Well Matters


- Development Proposals
and Predictions

- Profitability
DEVELOPMENT PLAN
Introduction to the Petroleum Industry
Facilities Engineering
and
Production Operations
Introduction to the Petroleum Industry
Basis of Design
Well Plan
- number of wells
- location of Wells
- type of wells (e.g. injector)

Fluid Production and Processing
- type of fluids and properties
(corrosive?)
- maximum capacities (oil, gas,
water)
- temperature and pressure
(wellhead, separator)

Life of Field (Production)
Facilities Engineers Production Engineers
Introduction to the Petroleum Industry
North Rankin Offshore Facilities
Introduction to the Petroleum Industry
Kingfish A Platform - Bass Strait
Introduction to the Petroleum Industry
Dai Hung Semi-submersible Transport
Introduction to the Petroleum Industry
Economic Evaluation
Introduction to the Petroleum Industry
Economics
(Planning & Evaluation)
Reservoir Engineering
Production Profiles
Planning & Evaluation
Exploration Prospect Evaluation
Project Evaluation
Business Planning
Marketing
Crude Differentials
Finance
Long Range Financial Forecasts
eg. oil price, inflation
exchange rates, etc
Management
Recommendations
Introduction to the Petroleum Industry
Presentation Outline
Petroleum Engineering
Petroleum Engineering Disciplines

Development Geophysics and Geology

Petrophysics

Reservoir Engineering

Drilling Engineering

Production Technology (well completion)

Facilities Engineering and Production Operations

Economic Evaluation
Facilities
Wells
Reservoirs
Management
Introduction to the Petroleum Industry
Never Under-estimate the Importance of People
Management
Introduction to the Petroleum Industry
References
- Department Library
- Some VietNamese reports of PetroVietNam
- scholar.google.com


Introduction to the Petroleum Industry
End
Thank you!