Introduction to Petroleum Industry

Structured around major activities: Up Stream: 1.Exploration 2.Drilling 3.Production 4.Reservoir

Down Stream: 1.Transportation 2.Refining 3.Petrochemicals 4.Marketing Division of work may change: time, location, size, policies, laws Structured around major activities:

Traits of Oil and Gas industry 1.Require large investments 2.Entail high technical and political risks 3.Products are exhaustible: no recycling 4.Has a great influence of foreign societies 5.Has major international companies and many local or international independents 6.Deal with strategic commodities 7.Heavily use high technology

Weight of the ME in World’s Energy 1.S hare of production in 30% ( 22 MMB/D ) 2.L ow regional consumption 3.B ig share of reserves: oil 65%, Gas 30% 4.L ow production cost 5.S trategic location 6.S urplus refined products ( 23% from their production )

The Future : Weight of ME 1.World will still depend on oil and gas 2.ME lead will continue 3.Major reserves will remain in the ME

Main Market of Middle East Oil Area % of Imports USA21 OECD, Europe 43.2 Japan64 Eastern Asia 80

Major ME exporters of LNG Area Million tons / year Qatar40 Algeria14.7 Iran5 Abu Dhabi 3.4 The ME will Enjoy its central position for the years to come.

Magma IgneousRocks Sediments MetamorphicRocks SedimentaryRocks The Rock Cycle Cooling Erosion Pressure & cementation Heat & pressure Heat

مصيدة متكونة نتيجة لقبة ملحية خارقة

مصيدة تركيبة: أثر الفوالق على انفصال تجمعات النفط في مصايد منفصلة من الكتلة المتصدعة.

Origin of Petroleum Oil is a fossil fuel that is formed from the remains of tiny plants and animals, known as plankton that died in ancient seas between 10 million and 600 million years ago.Oil is a fossil fuel that is formed from the remains of tiny plants and animals, known as plankton that died in ancient seas between 10 million and 600 million years ago. The plankton fell to the bottom of the sea and after decaying, the organisms formed sedimentary layers.The plankton fell to the bottom of the sea and after decaying, the organisms formed sedimentary layers. In the layers, little or no oxygen is present and this allows microorganisms to break down the remains into carbon-rich compounds that form organic layers.In the layers, little or no oxygen is present and this allows microorganisms to break down the remains into carbon-rich compounds that form organic layers.

Origin of Petroleum The organic material mix with the sediments to form fine-grained shale, or source rock.The organic material mix with the sediments to form fine-grained shale, or source rock. As the sedimentary rocks layer, they exert extreme heat and pressure to distill the organic material into crude oil and natural gas.As the sedimentary rocks layer, they exert extreme heat and pressure to distill the organic material into crude oil and natural gas.

Migration of Petroleum The oil then flows from the source rock and accumulates in thicker, more porous limestone or sandstone known as reservoir rock.The oil then flows from the source rock and accumulates in thicker, more porous limestone or sandstone known as reservoir rock. When the earth moves the oil and natural gas is trapped in reservoir rocks, which are between layers of impermeable rock, or cap rock – usually granite or marble.When the earth moves the oil and natural gas is trapped in reservoir rocks, which are between layers of impermeable rock, or cap rock – usually granite or marble. The whole process takes millions of years.The whole process takes millions of years.

Geophysical Prospecting Methods 1) Magnetic Surveying : Where :F - magnetic Force. A – constant generally unity. M 1 & M 2 – strength of the respective poles. r – distance between poles. M 1 M 2 r 2 F = a

2) Gravity Surveying : Where :F – Gravitational force between two point masses M 1 & M 2 d – Distance between M 1 & M 2 G – Gravitational constant ( 6.67 × 10 m / kg S ) M 1 M 2 d F = G

3) Seismic Surveying.

3) Seismic Surveying Oil geologists examine surface features, surface rock, reservoir rock, entrapment, satellite images, sensitive gravity meters and magnometers.Oil geologists examine surface features, surface rock, reservoir rock, entrapment, satellite images, sensitive gravity meters and magnometers. The most common technique for finding reserves is seismology which uses shock waves that interpret waves reflected back to the surface.The most common technique for finding reserves is seismology which uses shock waves that interpret waves reflected back to the surface. Despite all the technologies, modern oil exploration methods are only 10 percent successful.Despite all the technologies, modern oil exploration methods are only 10 percent successful.

4) Remote Sensing: Collection of data without the actual contact of the object. ( aeromagnetic & gravity ).Collection of data without the actual contact of the object. ( aeromagnetic & gravity ). Useful for topographic mapping specially in desert areasUseful for topographic mapping specially in desert areas When used in conjunction with other techniques such as gravity & magnetic, it may delineate anomalies that deserve further attention on the groundWhen used in conjunction with other techniques such as gravity & magnetic, it may delineate anomalies that deserve further attention on the ground

The Government and Oil companies usually assign finding oil to contracted geologists.The Government and Oil companies usually assign finding oil to contracted geologists.