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1 Introduction to Oil and Gas Production Steven Marzuola ATA Energy Conference May 4-6, 2007 Houston Texas http://www.techlanguage.com/ATA 2 Introduction Dope, Joints, Tripping Strippers Casing, Tubing, Liner API - American Petroleum Institute 3 Life of an Oilfield Reservoir formation Discovery and exploration • Drilling Production, well intervention • Abandonment 4 Early oil discoveries Usually guided by surface seepage. Lake Maracaibo was destination for ships, seeking tar for repairs. Oil was usually a nuisance encountered when drilling water wells Research in mid 1800’s, search to replace whale oil used in lamps First rotary drilled well - 1859, Titusville, PA 5 Blowouts 6 Historical practices On land, in the USA: Surface owner owns everything to the center of the earth. Often led to inefficiencies, legal battles. Today, mineral rights on most property are bought and sold separately from the surface land. Field or reservoir usually managed as a single unit.
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Page 1: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

1

Introduction toOil and Gas Production

Steven Marzuola

ATA Energy Conference

May 4-6, 2007

Houston Texas

http://www.techlanguage.com/ATA 2

Introduction

Dope, Joints, Tripping

Strippers

Casing, Tubing, Liner

API - American Petroleum Institute

3

Life of an Oilfield

• Reservoir formation

• Discovery and exploration

• Drilling

• Production, well intervention

• Abandonment

4

Early oil discoveries• Usually guided by surface seepage. Lake

Maracaibo was destination for ships,seeking tar for repairs.

• Oil was usually a nuisance encounteredwhen drilling water wells

• Research in mid 1800’s, search toreplace whale oil used in lamps

• First rotary drilled well -1859, Titusville, PA

5

Blowouts

6

Historical practices

• On land, in the USA: Surface owner ownseverything to the center of the earth.Often led to inefficiencies, legal battles.

• Today, mineral rights on most propertyare bought and sold separately from thesurface land. Field or reservoir usuallymanaged as a single unit.

Page 2: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

7

Congestion

8

Requirements of a Reservoir

1. Source or Generator rock

2. Reservoir

3. Seal or cap rock

4. Structure, hydrocarbons trap

5. Timing

6. Maturation

7. Migration

9

Exploration aided by geology

• Surface features– Anticlines

– Faults, Salt domes

– Presence of iron

• Subsurface surveys– Gravimeter, Magnetometer

– Seismic - 2D, 3D

10

Anticlines Salt dome

11

Structural trap

12

Gravimeter

Page 3: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

13

Seismic surveying

14

3D Seismic images

15

Today’s drilling• Most wells drilled using rotary drilling

• Steel drill pipe comes in 30-foot sectionsthat are threaded on both ends.

• Each section of drill pipe is called a joint.After drilling 30 feet, the kelly must beraised and another joint of pipe addedbelow the kelly. This is called making aconnection.

16

17

Drill string components

Typical rotary drillingBottom Hole Assembly (BHA)

Additional components: mudmotors, LWD / MWD tools,

steerable subs

18

Drill bits

Diamond bits

Tricone rock bit - jets,teeth.

Some use tungstencarbide teeth

Page 4: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

19

Surface components

• Kelly, kelly bushing, swivel, hose20

Pipehandling tools

Drill pipe slips Tongs

21

Pressure control

22

Flow of drilling mud

23

Hydrostatic pressure

• Pressure is proportional to:– Height (depth) of fluid column

– Density (i.e. lbs/gallon)

• Water (8.34 lb/gal) provides a“pressure gradient” of 0.433 psi/ft

• 10,000 ft well full of water; bottomhole pressure = 4333 psi

• Drilling mud usually weighs 1.6 - 2.5times more than water

24

Mud system components

• Shale shakers

• Desanders and desilters (hydrocyclones)

• Degassers

• Centrifuges

• Mud agitators

• Cuttings washers

Page 5: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

25

Water-based vs. oil-based muds

• Water most widely used, but can cause“skin” damage, contaminate formation

• In response, oil-based muds weredeveloped

• Adverse effects on rubber products,(seals, pump parts), environmentalconcern

26

Modern improvements

• Major changes in past 20 years are:– 3D seismic, software, computer

– Top drive - all offshore rigs, big/deeponshore

– MWD - Measure While Drilling technology

– Mud motors

– Directional drilling => horizontal wells

27

Horizontal drilling

Multilateralcompletions

28

Top Drive

29 30

Completions

• Most wells lined with steel casing.Purposes:– Protect from cave-ins

– Protect surface formations, water supply

– Isolate producing formations

– Prevent blowouts

• Innermost pipe is “tubing”, removable, toisolate flow from casing

Page 6: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

31

Casing and wellhead

32

Wellheads/Christmas trees

33

Separationequipment

34

Stages of production

• Primary recovery - natural flow

• Secondary recovery - mechanicalpumping, gas lift

• Tertiary or Enhanced Oil Recovery - Gasinjection, thermal, chemical

35

Workover and well servicing

• Together known as “intervention”

• Workover rig similar to drilling. Performsacidizing, fracturing stimulation,cementing, deeper drilling, recompletionto a different zone, sidetracking

• Well servicing - wireline, rod pullingunits, flexible tubing

36

Flexible tubing rig

Page 7: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

37

Pumping

38

TypicalRod Pump

39

Other methods

40

Offshore - Everything is BIG

41

• Water depth 303 meters

• Overall height 472meters

• Weighs 656,000 tons.

• Produces gas from 40wells

• Towed 200 km to theNorwegian Sea. Talleststructure ever moved byman.

Norske Shell “Troll A”

42

FPSO - Floating ProductionStorage, Offtake

Page 8: Steven Marzuola Introduction to Introduction Oil and Gas ... · PDF fileTypical rotary drilling Bottom Hole Assembly (BHA) Additional components: mud motors, LWD / MWD tools, steerable

Steven Marzuola

43

ChevronTexaco “Genesis”

44

Chevron “Typhoon” meets “Rita”

45

Peak Oil, or Hubbert’s Peak

• M. King Hubbert - Shell geophysicist

• Theory: production tends to followbell-shaped curve. Can be predictedin advance.

• Production increases early due todiscoveries and new infrastructure.Later declines due to depletion.

46

Peak Oil, or Hubbert’s Peak (cont)

• In 1956, Hubbert predicted peak of USAproduction late 1960s - early 1970s.

• Controversial, but proven right by 1976.Actual peak was in 1970.

• Is it applicable to world production?– Rapidly growing demand in China, India

– New technologies

47

Historical oil production

48

Steven Marzuola281-381-9337

[email protected]


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