Oil & Gas Fundamentals

An introduction to the Oil & Gas Industry - from the formation of crude oil to the consumer
Prep. by John S 1

Course Objectives



By the end of this session delegates will

understand the concept of the formation of oil and gas understand the concept of discovery, drilling for and producing crude oil and gas understand the concept of oil & gas separation, processing and the export of the product understand the concept of oil refining, petrochemical processes and the impact on our lives.
Prep. by John S 2

In the Beginning


Millions of years ago, dinosaurs roamed the Earth. Oceans and jungle covered the planet. Sea creatures were in abundance and volcanoes constantly spewed their ash and lava
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Prep. by John S

What Happened ?


Microscopic sea creatures called zooplankton & phytoplankton died and settled on the seabed and riverbeds.

Prep. by John S

The Little Things in Oil



Zooplankton are microscopic creatures such as these are the basis of the cocktail which combine to create Crude Oil
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Prep. by John S

Zooplankton and phytoplankton



Microscopic creatures of animalanimal-like and plantplant-like forms. The beginning of the food chain for most animals and creatures
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Prep. by John S

And on Land !!


Dinosaurs, land animals and vegetation died and were washed into riverbeds where the layers of silt and mud built up and sank deeper and deeper
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Prep. by John S

Pressure and Temperature



Great pressures in the Earths core caused violent volcanic eruptions. Lava and ash settled on top of the mud and silt, further compressing the layers.
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Prep. by John S

The Earth Moves



In the violent Earth of millions of years ago the huge lava flows and ash clouds helped build up the pressure and temperature of the silt beds

Prep. by John S

Tectonic Plate Movement



The Earth s crust (mantle) is constantly on the move (approx. 3 cm/year) caused by the effects of earthquakes, volcanic eruptions and the enormous pressures in the Earth s core. Constantly flexing and contracting, shifting the plates.
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Prep. by John S

Trapped !!
 

The Anticline trap. Formed when the crust folds to form a dome-shaped layer domelike an upside-down bowl. upsideThe dome can be a rock which will not let the oil and gas pass upwards or sideways (impervious), called Cap Rock .

Prep. by John S

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Trapped !!
 

The fault trap When rocks move they slide past each other, changing the layer levels. Oil trapped in the sedimentary rock is forced next to a layer which will not let the Oil and Gas move any further.

Prep. by John S

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Trapped !!
 

Sometimes called a Combination trap. When the sea dried up a layer of salt was formed eventually becoming rock salt which is impervious. Earth movements forced the salt through the layers around it to form a plug. This trapped the oil, gas and water

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The Ingredients !!
       

Zooplankton Phytoplankton Vegetation Brontosaurus T Rex Mud Silt Volcanic Residue

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Prep. by John S

The Pressure Cooker #1



Stage 1 Decomposing material - animal, vegetable etc. washed down to the sea by rivers and surface erosion
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The Pressure Cooker #2



Layers of silt, mud and debris build up, compressing the organic material and starting the process of change to hydrocarbons

Prep. by John S

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The Pressure Cooker #3



Earth movements cause upward and sideways shifts in the crust causing enormous pressure buildup, trapping hydrocarbons, water and gas between the layers.
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Prep. by John S

Let There Be Light



Oil was used as a source of light many thousands of years ago. The firepan produced a little light but the introduction of the wick and the lamp meant that the oil lasted longer and many wicks provided more light from one source This oil was usually found seeping on the surface.
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Prep. by John S

The Wick


Introduction of the wick increased the length of time that the oil lasted. It also burned cleaner and produced a brighter flame
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Prep. by John S

The Kerosene Lamp



The further refining of Snake Oil produced many products - kerosene in particular. Burnt in lamps to produce light and to replace the use of sperm oil from whales, kerosene saw the beginnings of the oil refining business and the first Oil Company .

Prep. by John S

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The Gas Lamp



Introduction of the gas street light was first introduced in Victorian Britain in 1816. Baltimore, Maryland followed shortly after
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Prep. by John S

It s a Winner


Prep. by John S

The invention of the Motor Car meant that gasoline became the premium product from the distillation process. Previously gasoline was discarded as a nonnonessential by-product byin the distillation of Kerosene 22

Hocus Pocus


In the early days, finding crude oil was very haphazard. Most wells were drilled near existing oil seeps but they too were more often than not unsuccessful.
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Prep. by John S

But How Do We Find Oil?




Seismic Surveys
Many modern methods are used to sound for oil but the principle remains the same. Project sound waves into the ground / seabed. Pick up the rebounded sound waves in the hydrophones The density (porosity) of the rock will produce a picture showing the type of rock structure below ground.

Prep. by John S

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Then What ?


Porosity
Depending on the porosity and the size of the rock formation a feasibility study will be made to decide whether to drill for oil and exploit the field
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Prep. by John S

Drilling Ahead
Page 11 F Conventional Land Rig / Equipment ( ig. 12) Crown Block

Monkey Board

Travelling Block Spare Drill Pipe Kelly Mud Hose

 
Blowout Preventer

Rotary Table

Mud Pumps Cuttings

Casing Stabiliser

Modern drilling rigs are very sophisticated but the basic principles remain the same. > 90 feet high to allow stacking of multiple drill strings while drilling ahead. A rotary table to rotate the drill A drill bit to cut into the rock. Mud Pumping systems and other support equipment

Drill Collar

Prep. by John S

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The Business End

Drill bits come in various sizes to suit the application and size of hole to be drilled. They can be diamond tipped and even tungsten carbide tipped to suit the material being drilled

Prep. by John S

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Cased Hole
Simplified Casing Schematic
Cement

The function of the Casing: Prevent the collapse of the drilled hole. Prevent loss of drilling fluids Isolate troublesome formations Prevent communication between formations Provide a means of support for wellhead equipment
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Casing Shoe


casing

 

Production Tubing

Production Packer

Prep. by John S

S.C.S.S.S.V .

Production Tubing Production Casing

Production Packer

7 Liner Wireline Entry Guide

Posiset Plug

Typi

l Pro u tio Tubi

o pl tio

Typical Completion
Tubing Hanger Flow Coupling

Production Tubing:
Conduit through which oil & gas are transported to surface Not cemented in place to allow replacement if necessary Sealed off from the casing string using a retrievable packer Contains all necessary equipment to carry out many wireline functions
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Flow Coupling

No-Go Nipple

Prep. by John S

Packer Accessories


Tubing Seal Assembly used with Permanent Packer - part of tubing string, passes through packer bore, compensates for tubing expansion/contraction, allows tubing to be pulled by an upward pull Tubing Anchor Latch used with Permanent Packer - anchors the tubing to the packer - retaining option to unlatch if necessary

Polished Bore Receptacle - alternative to tubing seal assemblies - PBR does not restrict flow - fitted to lower end of tubing string compensates for tubing elongation or contraction Expansion Joints - used with retrievable packers where both would be integral to the tubing string

Prep. by John S

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Tubing Accessories


Landing Nipples - Profiles designed to accept various wireline equipment, plugs, chokes, valves and gauges Flow Couplings -short length of heavy walled tubing installed n tubing to reduce turbulence Sliding Sleeves / Side Pocket Mandrels circulating devices - allows flow of fluids between inside and outside of tubing

Tail Pipe - all tubular components below the packer when completion has been installed Pup Joint - any joint of tubing shorter than the standard - inserted for spacing purposes Perforated Flow Coupling - alternative flow path for well fluids when wireline gauges located in bottom landing nipple
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Prep. by John S

Directional Drilling


Modern Directional Drilling techniques allow many wells to be produced from/to a single platform, FPSO or land site. This helps reduce the cost of multiple rigs and support facilities
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Prep. by John S

Directional Drilling


Within certain limitations, a drill string can be greater than 25000 feet long and bent in any direction required. An offshore platform can have as many as 24 wells all from a single source less than half the size of a football field

Prep. by John S

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One Single Platform



Here we have a good example of what can be achieved using one platform. All wells drilled by one platform and tied into a subsea cluster of wellheads
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Prep. by John S

Floating Production Storage and Offloading Facilities

Typical FPSO




Typical Facilities
Subsea Wellheads FPSO Vessel Standby Vessel Shuttle Vessel Helicopter facility

   

Prep. by John S

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What Do You Know ?


                

Identify the Numbers

No.1 No.2 No.3 No.4 No.5 No.6 No.7 No.8 No.9 No.10 No.11 No.12 No.13 No.14 No.15 No.16 No.17 36

Prep. by John S

Typical Christmas Tree



Main Components
L.M.G.V. U.M.G.V. Prod. Wing Valve Kill Wing Valve Surface Choke Swab Valve Annulus Vent

      

Prep. by John S

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What is Separation
G as O t C1 C4

Cr

d e In
G AS L IC O IL W ATER L IC

2O

C5+

M e th a n e c 1 E th a n e C 2 r pane C 3 B ta n e C 4 e n ta n e H exane N a p th a K er sene G a s le n e

C 5+

R e s id

a l W a te r H 2 O

Prep. by John S
R E S E R V O IR

W a te r O
    

O il O

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Typical 3 Phase Separator



Internal Equipment
Inlet Deflector Straightening Vanes Demister Mat Weir Plates Interface Level Controller Crude Oil Level Controller
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Gas O t

Cr de In

LIC

Water O t

Oil O t

Prep. by John S


LIC

   

Typical Refinery Layout


     

Refinery Processes
Crude Storage Tank Farm Pumping Station Fractionating Plant Cat. Cracker Product Storage Water Treatment Plant Flare system
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Prep. by John S

Fractionation Distillation
Fracti nal Distillati n
Fractionating Column
Liquified etr leum Gas C1-C4

Fr ctions Decreasing In Densit and Boiling o int

120 Deg.C Ker sene C10-C16 Fr cti s i c r si In D nsit nd Boiling o int Cr de Oil

170 Deg.C Diesel Oil C14-C20

270 Deg.C Lube Oil C20-C50

Fuel Oil C20-C70

600deg. C Resid e/Bit m en > C70

Prep. by John S

"

"

"

" # #             

20 Deg.C Naphtha C5-C9

70 Deg.C etr l/Gas lene C5-C10

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Floating Production Storage Offloading

F.P.S.O.


FPSO s may come in different sizes and guises. In this case we have a converted oil cargo vessel
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Prep. by John S

BuoyBuoy-Type F.P.S.O.


The latest technology has designed the BuoyBuoy-type F.P.S.O. for operations in harsh environments. Now being built for the Arctic region.
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Prep. by John S

F.P.S. / F.P.S.O. System



Some operators prefer the FPS/FPSO setup. This provides a facility for well workover, control and well intervention when required.

Prep. by John S

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Catenary lines and Turret

arrangement


A typical anchor pattern and turret arrangement. Vessel weatherweather-veins round turret.

Prep. by John S

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All this Hardware



Consider the huge investment required to produce the oil

Prep. by John S

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Topside Facilities


Now consider the cost of preparing the oil and gas for shipment ashore.

Prep. by John S

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PdIA

PI

To eawater Distri tion

over oard

PIC over oard

Prep. by John S

&

Back Fl sh Cont r

Back Fl sh Cont r

$&

Back Fl sh Cont r

&

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5 2 3 4 6

A ir T o o ls C ra n e o is t o is t Pum p L o g g in g U n it L ift o is t

Legend:

8
44 5 4

F ig . 3 T y p ic a l U t ilit y A ir a n d D is t r ib u t i n S y s t e m .

Prep. by John S

(3

1 2 3 4 5 6 7

A ir C m p . a c k a g e le r s A ir / O il C A ir F ilt e r s - C a le s c e r s - D r ie r s A ir R e c e iv e r la n t A ir D is t r ib u t i n H e a d e r 8 In s t r u m e n t A ir D is t r ib u t i n H e a d e r

F & D e lu g e C o n tr o l M o to r P u r g e s P u m p e a ls In s tr u m e n t a lv e s B u lk to r a g e T a n k s C h e m ic a l In je c tio n T a n k s C e n tr ifu g e P a c k a g e D r illin g s s e n tia l e r v ic e s e llh e a d d r a u lic k id a s C o m p re s s o r F la s h a le s a s C o m p re s s o r F la r e Ig n itio n A ir m e rg e n c e n . ta r t M a in g e n e r a to r s

' '

'

( ( 3' 1

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Prep. by John S

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Prep. by John S

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Boil r
B

B 7BD7 C E

B@

@9 87

Boili

lt

t r

ol w t r

Prep. by John S

87

B @ D F DB 7BD7 C E

87 @BG

ti

ooli

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Heating

Steam u mp

L ressure System

Prep. by John S

B i ler

C n denser

HH

B i ling Salt Water

C n densing Fresh Water

I PH

B i ler

B i ling Salt Water

C n densing Fresh Water

C n denser

Steam

Steam

Steam

High ressure System

l ing

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Purge gas

17.5 bar
Q R

17.5 bar Fuel as crubber

Q R

Pilot Gas

Fuel Gas

Fuel as crubber

Flare Ign.

Fuel To Main Turb. Gens

Flash Tank 20 bar

trip Gas Gl col Reconcentrator

U

st

tage ep

nd

tage ep

ot ater eaters

Prep. by John S
Fig. 6 Typical Fuel Gas System

S S

Q Q Q Q Q Q

tripping Gas .I

Fuel To Dual Fuel Turb. Gens .

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Air In

Rotor Blades

Combustion Chamber

Rotor

Exhaust

Fuel In

Stat r Blades
V

Fig. 7 Basic Gas Turbine

Prep. by John S

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Exhaust

Air Filter

Com bustion Cham ber

Fig. 8 Single Shaft Gas Turbine

Com pressor

Air

Hot Gas

Driven Load Com p. Rotor

Fuel in o wer Turbine

Prep. by John S

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Fuel in

Generator

Gearbox Gas Generator ower Turbine

X

Fig. 9 Twin Shaft Gas Turbine

Prep. by John S

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G.

G.

L0 2 VM i

L0 3

wb

VM i

Basi Generator

r .

G.

Volt

L04

ow Volt

i ing Quarters Swit b oar L05

Typi al

ne-line Electrical

istribution

iagram

Prep. by John S

eb d

V Basi er . wit b oar

eb d

u ts r

cb a

V Motor

V Motor

wb

q pp

u ts r

. V Main Swit b oar

L01

L01

T 1

T 2 6600/440V

T 3

T 4

. V Main Swit b oar

u t t qp p

q pp

x yx qwv i h

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