1. 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.
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

2. 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.

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

4. WHAT IS PETROLEUM?
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

5. Formation of Petroleum
Biogenic Theory

6. Chemical Basis of Fossil Fuels
Petroleum Composition
Biochemistry

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

8. API Gravity Fluid °API Fresh water 10 Heavy oil < 25 Average oil
Light oil

9. Classification of Oil and Gas
Fluid
Type
Separator GOR
(MSCF/STB)
Gravity
(°API)
Behavior in Reservoir due to Pressure Decrease
Dry gas
No surface liquids
Remains gas
Wet gas
> 50
40 to 60
Condensate
Gas with liquid drop out
Volatile oil
2.0 – 3.3
> 40
Liquid with significant gas
Black oil
< 2.0
< 45
Liquid with some gas
Heavy oil
≈ 0
Negligible gas formation

10. Classifying Hydrocarbon Liquid Types Using API Gravity and Viscosity
(degrees API)
Viscosity
(centipoises)
Light oil
> 31.1
Medium oil
22.3 to 31.1
Heavy oil
10 to 22.3
Water 10
1 cp
Extra heavy oil
4 to 10
< 10,000 cp
Bitumen
> 10,000 cp

11. WHAT IS PETROLEUM ENGINEERING?
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

12. Aspects of Petroleum Engineering
Drilling Engineering
Production Engineering
Reservoir Engineering

13. OILFIELD UNITS
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

14. Examples of Common Unit Systems
Length ft m
Time hr
sec
Pressure
psia Pa
lbf/ft2
Volumetric flow rate
bbl/day
m3/s
ft3/s
Viscosity cp
Pa∙s
lbf∙s/ft2

15. HOW DO WE ACCESS THE RESOURCE?
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

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

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

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

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

20. Rotary Drilling Rig

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

22. 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)

23. Well Orientation
Vertical
Well
Deviated
Well
Horizontal
Well

24. Advances in Drilling Technology

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

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

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

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

29. LIFE CYCLE OF A RESERVOIR
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

30. Typical Production Profile

31. Stages in the Life of a Reservoir
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

32. Sketch of Production Stages

33. Stages of Recovery Primary Recovery Secondary Recovery
Natural Flow or Artificial Lift
Secondary Recovery
Waterflood or Gas Injection
Tertiary Recovery
Thermal (steam or in-situ)
Gas Injection (CO2, N2, etc.)
Chemical
Microbial

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

35. QUESTIONS?
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

36. SUPPLEMENT
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.