Plankton, the Fuel of War:The Origin and Development of Iraqi Oil

Plankton, the Fuel of War:The Origin and Development of Iraqi Oil

Lecture Outline

• Introduction

• Geologic development of Iraq and oil formation

• Tectonic history

• Sedimentation history

• Human history of oil production in Iraq

• Current trends in oil and gas use

• Introduction

• Geologic development of Iraq and oil formation

• Tectonic history

• Sedimentation history

• Human history of oil production in Iraq

• Current trends in oil and gas use

This ad for the Chevron-Texaco 1936 marketing merger featured a processing plant built in Bahrain

The Arabian Peninsula is Home to the World’s Largest Oil Reserves

Middle Eastern Political

Boundaries and the Arabian

Peninsula

Folds in Sedimentary Layers Can Trap Oil

Oil migrates from a source rock into a trap in a reservoir rockOil migrates from a source rock into a trap in a reservoir rock

Requirements for Formation of Oil and Gas Deposits

• Source RockSource Rock - sedimentary strata rock rich in organic matter - sedimentary strata rock rich in organic matter typically shale or limestonetypically shale or limestone

• Thermal maturation and migrationThermal maturation and migration - Source rock is heated to - Source rock is heated to 90 to 15090 to 150ooC to convert organic solids into liquid hydrocarbon (oil C to convert organic solids into liquid hydrocarbon (oil and natural gas)and natural gas)

• Reservoir RockReservoir Rock - Sedimentary rock in which oil accumulates; - Sedimentary rock in which oil accumulates; must contain abundant pore spaces;must contain abundant pore spaces; typically sandstone or limestonetypically sandstone or limestone

• Seal RockSeal Rock - Impermeable sedimentary strata that blocks upward - Impermeable sedimentary strata that blocks upward flow of oil; flow of oil; typically shale or evaporites (salt)typically shale or evaporites (salt)

• TrapTrap - Geometric arrangement of reservoir and seal rocks that - Geometric arrangement of reservoir and seal rocks that cause significant amounts of oil to accumulate in one areacause significant amounts of oil to accumulate in one area

• TimingTiming - Trap must form before thermal maturation and - Trap must form before thermal maturation and migration occursmigration occurs

Plankton in the Arabian Sea

Oil Forms from Plankton Remains

diatom

coccolithophore

radiolarian

foramifera

PaleozoicPaleozoic255 Ma255 Ma• Arabia covered by Arabia covered by

Paleo-Tethys Sea Paleo-Tethys Sea (shallow)(shallow)

• Shale source rocks Shale source rocks accumulate in Saudi accumulate in Saudi ArabiaArabia

PaleozoicPaleozoic255 Ma255 Ma• Arabia covered by Arabia covered by

Paleo-Tethys Sea Paleo-Tethys Sea (shallow)(shallow)

• Shale source rocks Shale source rocks accumulate in Saudi accumulate in Saudi ArabiaArabia

Tectonic Development of Arabian Peninsula

Early TriassicEarly Triassic235 Ma235 Ma

• Persia rifts from Persia rifts from ArabiaArabia

• Arabia inundated Arabia inundated by Tethys Sea by Tethys Sea (shallow) (shallow)

Early TriassicEarly Triassic235 Ma235 Ma

• Persia rifts from Persia rifts from ArabiaArabia

• Arabia inundated Arabia inundated by Tethys Sea by Tethys Sea (shallow) (shallow)

Tectonic Development of Arabian Peninsula

Tethys Sea

JurassicJurassic195 Ma195 Ma

• Arabia Arabia covered by covered by shallow Seasshallow Seas

• Organic - rich Organic - rich limestone limestone source rocks source rocks accumulateaccumulate

JurassicJurassic195 Ma195 Ma

• Arabia Arabia covered by covered by shallow Seasshallow Seas

• Organic - rich Organic - rich limestone limestone source rocks source rocks accumulateaccumulate

Tectonic Development of Arabian Peninsula

Tethys Sea

Distribution Distribution of Jurassic of Jurassic

Source Source Rocks on Rocks on Arabian Arabian

PeninsulaPeninsula

From USGS Bull. 2202-E

CretaceousCretaceous95 Ma95 Ma• Arabia covered by Arabia covered by

shallow Seas, but shallow Seas, but Tethys Sea begins Tethys Sea begins to closeto close

• Limestone and Limestone and sandstone sandstone reservoir rocks reservoir rocks accumulateaccumulate

• Evaporite seal Evaporite seal rocks accumulaterocks accumulate

CretaceousCretaceous95 Ma95 Ma• Arabia covered by Arabia covered by

shallow Seas, but shallow Seas, but Tethys Sea begins Tethys Sea begins to closeto close

• Limestone and Limestone and sandstone sandstone reservoir rocks reservoir rocks accumulateaccumulate

• Evaporite seal Evaporite seal rocks accumulaterocks accumulate

Tethys Sea

Tectonic Development of Arabian Peninsula

Distribution Distribution of of

Cretaceous Cretaceous Seal Rocks Seal Rocks on Arabian on Arabian PeninsulaPeninsula

From USGS Bull. 2202-E

Early TertiaryEarly Tertiary35 Ma35 Ma

• Arabia collides Arabia collides with Persia and with Persia and AsiaAsia

• Zagros Mountains Zagros Mountains begin forming (+ begin forming (+ Alps through Alps through Himalaya)Himalaya)

• Anticline traps Anticline traps formedformed

• Oil migrates from Oil migrates from source rocks to source rocks to reservoir rocks reservoir rocks and accumulates and accumulates in trapsin traps

Early TertiaryEarly Tertiary35 Ma35 Ma

• Arabia collides Arabia collides with Persia and with Persia and AsiaAsia

• Zagros Mountains Zagros Mountains begin forming (+ begin forming (+ Alps through Alps through Himalaya)Himalaya)

• Anticline traps Anticline traps formedformed

• Oil migrates from Oil migrates from source rocks to source rocks to reservoir rocks reservoir rocks and accumulates and accumulates in trapsin traps

Tectonic Development of Arabian Peninsula

Tectonic Development of Arabian Peninsula

Overly Overly Deformed Deformed

and Uplifted and Uplifted RocksRocks

Insufficient Insufficient Accumulation of Accumulation of

Sedimentary RocksSedimentary Rocks

Oil was first discovered in the Middle East by George Reynolds (left) in 1908, working for a British Company

History of Middle Eastern Oil Development and Production

• Pre - WWI• 1908 - Oil discovered by British Interests in

Persia (Iran) after 5 - year search.

• Ottoman Empire (Iraq, Saudi Arabia) mostly unexplored for oil

• Post - WWI• Oil recognized by Europeans and U.S. as vital

to national security

• Ottoman Empire dissolved

• Oil discovered near Kirkuk in 1927

• Production volume split equally between Britain, France and U.S. by agreement

• 1938, oil discovered in Kuwait and Saudi Arabia

• Pre - WWI• 1908 - Oil discovered by British Interests in

Persia (Iran) after 5 - year search.

• Ottoman Empire (Iraq, Saudi Arabia) mostly unexplored for oil

• Post - WWI• Oil recognized by Europeans and U.S. as vital

to national security

• Ottoman Empire dissolved

• Oil discovered near Kirkuk in 1927

• Production volume split equally between Britain, France and U.S. by agreement

• 1938, oil discovered in Kuwait and Saudi Arabia

History of Iraqi Oil Development and Production

Two StagesTwo Stages

• 1925-19611925-1961

• Iraqi Petroleum Iraqi Petroleum Company, post Company, post WWI, moderate WWI, moderate development, development, most profits most profits taken abroad taken abroad (Britain)(Britain)

• 1968 - Present1968 - Present

• Iraqi National Oil Iraqi National Oil Company, rapid Company, rapid development, development, profits kept in profits kept in IraqIraq

From Graham, 2002

U.S. consumes 20 million bbl/day, 7 billion bbl/year

Iraqi Oil Fields

Two main Two main groupsgroups

• Basrah Basrah area in area in southeastsoutheast

• Kirkuk Kirkuk area in area in northnorth

U.S. Imports of Iraqi Oil

Iraqi Oil Exports• To the U.S.

• 800,000 bbl/day

• 8.5% of total U.S. imports

• 32% of Iraqi exports

• To other countries

• 1.5 million bbl/day to France, China and Russia

• 200,000 to 400,000 bbl/day smuggled to neighboring states

• Erratic Production Rates

From Graham, 2002

EstimatedReserves

• Proven reserves

• 112 (EIA, 2002) to 142 (Ibrahim, 1996) billion barrels

• Undiscovered reserves

• 45 (USGS) to 220 (EIA) billion barrels

Iraqi Oil Potential

From Graham, 2002

U.S. Oil Consumption Will Outpace Production

• Based on Based on trends over trends over past ten yearspast ten years

• U.S. U.S. consumption consumption will increase will increase by 6 million by 6 million bbl per daybbl per day

• U.S. U.S. production production will decrease will decrease by 1.5 million by 1.5 million bbl per daybbl per day

After Graham, 2002

Does Cheap Gas Fuel Increased

Consumption?

Oil and Gas Prices, 1920-1995

Where the U.S. Gets Its Oil Imports

Global Oil Reserves

Persian Gulf Oil

Conclusions• Fortuitous geologic history gave Iraq

enormous oil reserves

• U.S. and global oil consumption will increase while production declines

• Iraq will play vital role in global economy