JMA The Quest for Energy The Petroleum Industry

JMA Discovering and Producing Petroleum Interpreting the Unseen Silicon Graphics Trap Source Charge Tools - Gravity - Magnetics - Seismic - Wells

JMA Petroleum System Elements Source Rock - A rock with abundant hydrocarbon-prone organic matter Source Rock - A rock with abundant hydrocarbon-prone organic matter Reservoir Rock - A rock in which oil and gas accumulates: - Porosity - space between rock grains in which oil accumulates - Permeability - passage-ways between pores through which oil and gas moves Reservoir Rock - A rock in which oil and gas accumulates: - Porosity - space between rock grains in which oil accumulates - Permeability - passage-ways between pores through which oil and gas moves Seal Rock - A rock through which oil and gas cannot move effectively (such as mudstone and claystone) Seal Rock - A rock through which oil and gas cannot move effectively (such as mudstone and claystone) Migration Route - Avenues in rock through which oil and gas moves from source rock to trap Migration Route - Avenues in rock through which oil and gas moves from source rock to trap Trap - The structural and stratigraphic configuration that focuses oil and gas into an accumulation Trap - The structural and stratigraphic configuration that focuses oil and gas into an accumulation

JMA Hydrocarbon Trap Types American Petroleum Institute, 1986

JMA The Basic Trap Gas Gas Oil Oil Water Petroleum Accumulates in Anticlines

JMA Petroleum System Elements (Impermeable) Potential Migration Route (Porous/Permeable)

JMA Seismic Imaging of Anticline Vibrator Truck (Energy Source) Recording Truck Geophone (Receivers) American Petroleum Institute, 1986 Returning Sound Waves

JMA Seismic Image of Anticline Milliseconds 1 km

JMA World Fuel Consumption: Cook and Sheath, 1997 Million tonnes oil equivalent Year 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Oil Natural Gas Nuclear Energy HydroelectricityCoal

JMA Projected World Energy Supplies Projected World Energy Supplies Equivalent per (GBOE) Equivalent per (GBOE) BILLION BARRELS Billion Barrels of Oil Year Billion Barrels of Oil Year Natural Gas Natural Gas Hydroelectric Crude Oil Solar, Wind Geothermal Nuclear Electric 1993 Coal Decreasing Fossil Fuels New Technologies World Energy Demand after Edwards, AAPG 8/97 Careers in Oil & Gas Remain Important

JMA Global Exploration Global Oil and Gas Fields GasOil

JMA US Petroleum Occurrence Gulf of Mexico is only significant, economic province remaining

JMA Geoscience Demographics in 1998 For a Typical Major Oil Company > Age (yrs) Age Brackets for Geoscientists Worldwide Insufficient Replacement Increasing Retirement Boom Hiring

JMA Global Exploration Opportunities for Future Growth Venezuela W. Africa GOM including Mexico Caspian Caspian Sakhalin Vietnam Australia Brazil W. Siberia W. Siberia India

JMA State of the Industry and the Country Is Iraq and Afganistan about oil?Is Iraq and Afganistan about oil? To some extent, yes! To some extent, yes! What has been US foreign policy on the Middle EastWhat has been US foreign policy on the Middle East since WWII? since WWII? We import a dangerously high percentage of oilWe import a dangerously high percentage of oil The myth of US energy self-sufficiency: ANWRThe myth of US energy self-sufficiency: ANWR will only supply our demand for a few months will only supply our demand for a few months What happened to alternative fuel research?What happened to alternative fuel research? New ways to generate energy: hydrogen cellsNew ways to generate energy: hydrogen cells

JMA State of the Industry Mergers and Takeovers: fewer companies,Mergers and Takeovers: fewer companies, risk-aversion risk-aversion Shareholder Influence and the short-term: the EnronShareholder Influence and the short-term: the Enron phenomenon and corporate behavior phenomenon and corporate behavior Reliance on computers: what happens when theReliance on computers: what happens when the network goes down? network goes down? The productivity revolution: lay-offs and getting by withThe productivity revolution: lay-offs and getting by with fewer employees but doing fine fewer employees but doing fine The demographics of few students enteringThe demographics of few students entering petroleum programs in universities petroleum programs in universities

JMA Relatively cheap energy Global warming and sea-level change: combustionGlobal warming and sea-level change: combustion (CO2) is a problem regardless of global warming (CO2) is a problem regardless of global warming Car pollution: SUV’s and suburban commutingCar pollution: SUV’s and suburban commuting We will run out of water before fuelWe will run out of water before fuel Fisheries and the environment: we are beyondFisheries and the environment: we are beyond the threshold the threshold Overpopulation and food supplyOverpopulation and food supply The oil industry’s record on the environmentThe oil industry’s record on the environment The cost of gasoline in the US vs. the rest of the worldThe cost of gasoline in the US vs. the rest of the world