INTRODUCTION 2017 John R Fanchi All rights reserved

INTRODUCTION © 2017, John R. Fanchi All rights reserved. No part of this manual may be reproduced in any form without the express written permission of the author.

To the Instructor The set of files here are designed to help you prepare lectures for your own course using the text Introduction to Petroleum Engineering, J. R. Fanchi and R. L. Christiansen (Wiley, 2017) File format is kept simple so that you can customize the files with relative ease using your own style. You will need to supplement the files to complete the presentation topics.

Outline Ø What is Petroleum? Ø What is Petroleum Engineering? Ø Oilfield Units Ø How Do We Access the Resource? Ø Life Cycle of a Reservoir Homework: IPE Ch. 1

WHAT IS PETROLEUM?

Formation of Petroleum Biogenic Theory

Chemical Basis of Fossil Fuels Petroleum Composition Biochemistry

Producing Fluid Ratios Ø Gas/Oil Ratio (GOR) Ø cf gas/bbl oil = rate gas/rate oil Ø Water/Oil Ratio (WOR) Ø bbl water/bbl oil = rate water/rate oil Ø Water cut Ø bbl water/(bbl oil + bbl water) = rate water/(rate oil + rate water)

API Gravity Fluid Fresh water Heavy oil °API 10 < 25 Average oil 25 - 35 Light oil 35 - 45

Classification of Oil and Gas Fluid Type Dry gas Separator GOR (MSCF/STB) No surface liquids Wet gas > 50 Condensate 3. 3 - 50 Volatile oil 2. 0 – 3. 3 Black oil < 2. 0 Heavy oil ≈ 0 Gravity Behavior in Reservoir due (°API) to Pressure Decrease Remains gas 40 to 60 > 40 < 45 Remains gas Gas with liquid drop out Liquid with significant gas Liquid with some gas Negligible gas formation

Classifying Hydrocarbon Liquid Types Using API Gravity and Viscosity Liquid Type Light oil Medium oil Heavy oil Water Extra heavy oil Bitumen API Gravity (degrees API) > 31. 1 22. 3 to 31. 1 10 to 22. 3 10 4 to 10 Viscosity (centipoises) 1 cp < 10, 000 cp > 10, 000 cp

WHAT IS PETROLEUM ENGINEERING?

Aspects of Petroleum Engineering Ø Drilling Engineering Ø Production Engineering Ø Reservoir Engineering

OILFIELD UNITS

Examples of Common Unit Systems Length Time Pressure Volumetric flow rate Viscosity ft hr psia bbl/day cp m sec Pa m 3/s Pa∙s ft sec lbf/ft 2 ft 3/s lbf∙s/ft 2

HOW DO WE ACCESS THE RESOURCE?

Typical Project Workflow Ø Ø Ø Identify project opportunities Generate and evaluate alternatives Select and design the desired alternative Implement the alternative Operate the alternative Ø Over the life of the project Ø Include abandonment Ø Evaluate the success of the project Ø Learn lessons Ø Apply lessons to future projects

Traditional E&P Company Processes – 1 [after Raymond and Leffler, 2006, Fig. 12 -2] Ø Evaluate assets Ø Negotiate or bid and acquire assets Ø Model resource and reservoir * Ø Acquire subsurface data * Ø Prepare subsurface development plan * Ø Well design * Ø Surface facilities design * * May be outsourced to service companies

Traditional E&P Company Processes – 2 [after Raymond and Leffler, 2006, Fig. 12 -2] Ø Construct facilities * Ø Drill wells * Ø Operate wells * Ø Maintain facilities * Ø Maintain wells * Ø Monitor and evaluate reservoir performance * Ø Abandon facilities and wells * May be outsourced to service companies

Evolution of Drilling Rigs Ø Cable tool drilling rig use peaks circa 1859 Ø Transition to rotary drilling rig circa 1900 – 1930 Ø Rotary rigs appear late 1800 s; dominate today Derrick Walking Beam Cable Tool Drilling Rig Bull Wheel Engine Bit

Rotary Drilling Rig

Basic Drilling Functions Ø Prime Movers Ø Engines Ø Hoisting System Ø Raise and lower pipe (e. g. drillstring, casing, tubing) Ø Derrick, drawworks, blocks and hook Ø Rotating System Ø Rotate drillstring and bit Ø Swivel, kelly, rotary table Ø Circulating System Ø Circulate drilling fluid Ø Pumps, standpipe, return line, solids control equipment Ø Controlling System Ø Control pressure Ø Blowout preventers, choke system

Wellbore Diagram for Vertical Well Concentration (ppm) Fresh water < 1, 000 Brackish water 1, 000 to 35, 000 Brine > 35, 000 Source: Hyne (2012, pg 18)

Well Orientation Vertical Well Deviated Well Horizontal Well

Advances in Drilling Technology

Hydraulic Fracturing Develop shale gas by combining directional drilling and hydraulic fracturing

Exploration Wells Ø Wildcat (aka controlled exploratory well) Ø Test a trap that has never produced (new field wildcat) Ø Test a new reservoir in a known field Ø Extend known limits of producing reservoir Ø Rank wildcat Ø Well drilled at least 2 miles (3 kms) from known production Ø Discovery well Ø The wildcat discovers new field

Development Wells Ø Wells for estimating field size Ø Appraisal well Ø Delineation well Ø Step out well Ø Development well Ø Well drilled in known extent of field Ø Infill well Ø Well drilled between producing wells in established field

Well Function Ø Production well Ø Produce gas and/or liquids Ø Produce heat Ø e. g. geothermal wells Ø Injection well Ø Inject gas and/or liquids Ø Includes Ø Disposal well Ø Sequestration well Ø Inject heat Ø e. g. steam flood

LIFE CYCLE OF A RESERVOIR

Typical Production Profile

Stages in the Life of a Reservoir Stage Function Exploration Identify resource prospects Discovery Find resource Delineation Determine size of resource Development Prepare strategy for extracting resources Production Produce resource Abandonment Leave resource location

Sketch of Production Stages

Stages of Recovery Ø Primary Recovery Ø Natural Flow or Artificial Lift Ø Secondary Recovery Ø Waterflood or Gas Injection Ø Tertiary Recovery Ø Ø Thermal (steam or in-situ) Gas Injection (CO 2, N 2, etc. ) Chemical Microbial

Stages in the Life of a Reservoir Ø Ø Exploration Discovery Delineation Development Ø Primary Ø Secondary Ø Tertiary Ø Infill Drilling Ø EOR (Enhanced Oil Recovery) Ø IOR (Improved Oil Recovery) Ø EGR (Enhanced Gas Recovery) Ø Abandonment

QUESTIONS?

SUPPLEMENT