1. Plankton, the Fuel of War: The Origin and Development of Iraqi Oil Plankton, the Fuel of War: The Origin and Development of Iraqi Oil

2. Lecture Outline Introduction Geologic development of Iraq and oil formation Tectonic history Sedimentation history Human history of oil production in Iraq Current trends in oil and gas use Introduction Geologic development of Iraq and oil formation Tectonic history Sedimentation history Human history of oil production in Iraq Current trends in oil and gas use This ad for the Chevron-Texaco 1936 marketing merger featured a processing plant built in Bahrain

3. The Arabian Peninsula is Home to the World’s Largest Oil Reserves

4. Middle Eastern Political Boundaries and the Arabian Peninsula

5. Folds in Sedimentary Layers Can Trap Oil Oil migrates from a source rock into a trap in a reservoir rock

6. Requirements for Formation of Oil and Gas Deposits Source Rock - sedimentary strata rock rich in organic matter typically shale or limestoneSource Rock - sedimentary strata rock rich in organic matter typically shale or limestone Thermal maturation and migration - Source rock is heated to 90 to 150 o C to convert organic solids into liquid hydrocarbon (oil and natural gas)Thermal maturation and migration - Source rock is heated to 90 to 150 o C to convert organic solids into liquid hydrocarbon (oil and natural gas) Reservoir Rock - Sedimentary rock in which oil accumulates; must contain abundant pore spaces; typically sandstone or limestoneReservoir Rock - Sedimentary rock in which oil accumulates; must contain abundant pore spaces; typically sandstone or limestone Seal Rock - Impermeable sedimentary strata that blocks upward flow of oil; typically shale or evaporites (salt)Seal Rock - Impermeable sedimentary strata that blocks upward flow of oil; typically shale or evaporites (salt) Trap - Geometric arrangement of reservoir and seal rocks that cause significant amounts of oil to accumulate in one areaTrap - Geometric arrangement of reservoir and seal rocks that cause significant amounts of oil to accumulate in one area Timing - Trap must form before thermal maturation and migration occursTiming - Trap must form before thermal maturation and migration occurs

7. Plankton in the Arabian Sea

8. Oil Forms from Plankton Remains diatom coccolithophore radiolarian foramifera

9. Paleozoic 255 Ma Arabia covered by Paleo-Tethys Sea (shallow)Arabia covered by Paleo-Tethys Sea (shallow) Shale source rocks accumulate in Saudi ArabiaShale source rocks accumulate in Saudi ArabiaPaleozoic 255 Ma Arabia covered by Paleo-Tethys Sea (shallow)Arabia covered by Paleo-Tethys Sea (shallow) Shale source rocks accumulate in Saudi ArabiaShale source rocks accumulate in Saudi Arabia Tectonic Development of Arabian Peninsula

10. Early Triassic 235 Ma Persia rifts from ArabiaPersia rifts from Arabia Arabia inundated by Tethys Sea (shallow)Arabia inundated by Tethys Sea (shallow) Early Triassic 235 Ma Persia rifts from ArabiaPersia rifts from Arabia Arabia inundated by Tethys Sea (shallow)Arabia inundated by Tethys Sea (shallow) Tectonic Development of Arabian Peninsula

11. Tethys Sea Jurassic 195 Ma Arabia covered by shallow SeasArabia covered by shallow Seas Organic - rich limestone source rocks accumulateOrganic - rich limestone source rocks accumulateJurassic 195 Ma Arabia covered by shallow SeasArabia covered by shallow Seas Organic - rich limestone source rocks accumulateOrganic - rich limestone source rocks accumulate Tectonic Development of Arabian Peninsula Tethys Sea

12. Distribution of Jurassic Source Rocks on Arabian Peninsula From USGS Bull. 2202-E

13. Cretaceous 95 Ma Arabia covered by shallow Seas, but Tethys Sea begins to closeArabia covered by shallow Seas, but Tethys Sea begins to close Limestone and sandstone reservoir rocks accumulateLimestone and sandstone reservoir rocks accumulate Evaporite seal rocks accumulateEvaporite seal rocks accumulateCretaceous 95 Ma Arabia covered by shallow Seas, but Tethys Sea begins to closeArabia covered by shallow Seas, but Tethys Sea begins to close Limestone and sandstone reservoir rocks accumulateLimestone and sandstone reservoir rocks accumulate Evaporite seal rocks accumulateEvaporite seal rocks accumulate Tethys Sea Tectonic Development of Arabian Peninsula

14. Distribution of Cretaceous Seal Rocks on Arabian Peninsula From USGS Bull. 2202-E

15. Late Cretaceous - Early Tertiary 65 Ma Arabia covered by shallow SeasArabia covered by shallow Seas Source rocks buried, heated, organics converted to oilSource rocks buried, heated, organics converted to oil Late Cretaceous - Early Tertiary 65 Ma Arabia covered by shallow SeasArabia covered by shallow Seas Source rocks buried, heated, organics converted to oilSource rocks buried, heated, organics converted to oil Tectonic Development of Arabian Peninsula

16. Early Tertiary 35 Ma Arabia collides with Persia and AsiaArabia collides with Persia and Asia Zagros Mountains begin forming (+ Alps through Himalaya)Zagros Mountains begin forming (+ Alps through Himalaya) Anticline traps formedAnticline traps formed Oil migrates from source rocks to reservoir rocks and accumulates in trapsOil migrates from source rocks to reservoir rocks and accumulates in traps Early Tertiary 35 Ma Arabia collides with Persia and AsiaArabia collides with Persia and Asia Zagros Mountains begin forming (+ Alps through Himalaya)Zagros Mountains begin forming (+ Alps through Himalaya) Anticline traps formedAnticline traps formed Oil migrates from source rocks to reservoir rocks and accumulates in trapsOil migrates from source rocks to reservoir rocks and accumulates in traps Tectonic Development of Arabian Peninsula

18. Overly Deformed and Uplifted Rocks Insufficient Accumulation of Sedimentary Rocks

19. Oil was first discovered in the Middle East by George Reynolds (left) in 1908, working for a British Company

20. History of Middle Eastern Oil Development and Production Pre - WWI 1908 - Oil discovered by British Interests in Persia (Iran) after 5 - year search. Ottoman Empire (Iraq, Saudi Arabia) mostly unexplored for oil Post - WWI Oil recognized by Europeans and U.S. as vital to national security Ottoman Empire dissolved Oil discovered near Kirkuk in 1927 Production volume split equally between Britain, France and U.S. by agreement 1938, oil discovered in Kuwait and Saudi Arabia Pre - WWI 1908 - Oil discovered by British Interests in Persia (Iran) after 5 - year search. Ottoman Empire (Iraq, Saudi Arabia) mostly unexplored for oil Post - WWI Oil recognized by Europeans and U.S. as vital to national security Ottoman Empire dissolved Oil discovered near Kirkuk in 1927 Production volume split equally between Britain, France and U.S. by agreement 1938, oil discovered in Kuwait and Saudi Arabia

21. History of Iraqi Oil Development and Production Two Stages 1925-19611925-1961 Iraqi Petroleum Company, post WWI, moderate development, most profits taken abroad (Britain)Iraqi Petroleum Company, post WWI, moderate development, most profits taken abroad (Britain) 1968 - Present 1968 - Present Iraqi National Oil Company, rapid development, profits kept in IraqIraqi National Oil Company, rapid development, profits kept in Iraq From Graham, 2002 U.S. consumes 20 million bbl/day, 7 billion bbl/year

22. Iraqi Oil Fields Two main groups Basrah area in southeastBasrah area in southeast Kirkuk area in northKirkuk area in north

23. U.S. Imports of Iraqi Oil Iraqi Oil Exports To the U.S. 800,000 bbl/day 8.5% of total U.S. imports 32% of Iraqi exports To other countries 1.5 million bbl/day to France, China and Russia 200,000 to 400,000 bbl/day smuggled to neighboring states Erratic Production Rates From Graham, 2002

24. Estimated Reserves Proven reserves 112 (EIA, 2002) to 142 (Ibrahim, 1996) billion barrels Undiscovered reserves 45 (USGS) to 220 (EIA) billion barrels Iraqi Oil Potential From Graham, 2002

25. U.S. Oil Consumption Will Outpace Production Based on trends over past ten yearsBased on trends over past ten years U.S. consumption will increase by 6 million bbl per dayU.S. consumption will increase by 6 million bbl per day U.S. production will decrease by 1.5 million bbl per dayU.S. production will decrease by 1.5 million bbl per day After Graham, 2002

26. Does Cheap Gas Fuel Increased Consumption? Oil and Gas Prices, 1920-1995

27. Where the U.S. Gets Its Oil Imports

28. Global Oil Reserves

29. Persian Gulf Oil

30. Conclusions Fortuitous geologic history gave Iraq enormous oil reserves U.S. and global oil consumption will increase while production declines Iraq will play vital role in global economy