Oil Flashcards

1
Q

History of oil?

A

Neanderthals, Mesopotamians use for adhesives(thousands BC); Chinese first refined oil for lighting/heating; Persians use flaming oil arrows in war(400BC); Arabs develop into napalm-like stuff(600AD); Europe starts using for lighting, Persia digs oil wells (1500s)

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2
Q

Oil formation

A

organic material (microscopic animals), time, temp, pressure

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3
Q

Formation sequence

A

burial, fold, fault

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4
Q

Porosity

A

volume of pore space in a rock as fraction of total rock volume

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5
Q

Permeability

A

Ease with which fluids can move through pores of rock

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6
Q

What kind of rocks do oil and NG like?

A

Sedimentary rocks w/porosity, permeability

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7
Q

Anatomy of Oil/Gas field

A

trap, reservoir rock, source rock

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8
Q

Trap

A

keeps oil/NG there; either stratigraphic (impermeable rock cap) or structural (folding, faulting) or both

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9
Q

Reservoir Rock

A

sandstone w/porosity, permeability

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10
Q

Source Rock

A

organic-rich shale

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11
Q

Oil exploration techniques (5)

A

surface, subsurface mapping, rock dating, oil seeps, reflection seismography,

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12
Q

Offshore oil discovery notes (5)

A

larger scale, deep water–need very different tech, spills harder to contain, mineral rights belong to govt

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13
Q

Royalty Interests

A

Mineral rights owner usually gets from 12.5-25% of revenues from drilling

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14
Q

Oil development on fed lands

A

Bureau of Land Management decides, gov’t takes royalty fee from proudcers
68% US oil/NG resources from fed land

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15
Q

ANWR

A

Arctic National Wildlife Refuge (alaska); to drill there, or not to drill there?

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16
Q

US offshore oil regulations

A

post-BP drilling has started again;

overseen by BSEE (bureau of safety and environmental enforcement)

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17
Q

Oil & the US budget

A

Oil companies get tons of tax breaks; various attempts by Obama to get rid of them–no luck so far

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18
Q

rig count

A

measure of drilling activity, not rig inventory; number of drilling rigs operating at any time

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19
Q

World rig count

A

~3500 (2012)

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20
Q

US rig count

A

~2000 (2012)

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21
Q

Drilling rig (11)

A

size function of well depth;
crown block, derrick, traveling block, rotary drive, drill string, drill collar, drill bit
also: casing, engineer, blowout preventer

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22
Q

Drill bits (3)

A

tri-cone bit (most common), diamond-tipped bit (hard rock or direction changes), rotary bit (like a screwdriver)

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23
Q

Drilling mud (composition)

A

mixture of water, clay, barite (for weighting), and chemicals

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24
Q

Drilling mud (purposes, 4)

A
Raises drill cuttings for disposal
Weight to keep pressure in check
Weight to prevent hole collapse
Thin layer of clay = stable walls of hole
Cleans and cools bit
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25
Blowout preventers
contain/release high pressure subsurface events (deepwater horizon one failed to close!)
26
Vertical drilling
Reaches vertical dimension of reservoir; lots of wells per area are required
27
Directional Drilling
Increases exposed length through reservoir enables drilling if vert access is difficult less surface disturbance
28
Horizontal drilling
vertical down then horizontal across | does the work of several vertical wells (read: less surface disturbance, fewer rigs needed)
29
Multilateral drilling
several horizontal bores off of one vertical and one initial horizontal branched or stacked
30
Pad drilling
multiple drill bores from single location vertical drill then horizontal out radially; can be stacked can make marginal fields profitable
31
Perforating & Acidizing
perforations: holes made through casing/cement Acidizing: acid pumped down casing, goes through perforations, contacts formation and etches channels so the oil can get out
32
hydraulic fracturing
for low-permeability reservoir/source rocks inject millions gallons of water/sand/chemicals at high pressure-->cracks rock and sand holds cracks open-->oil can get out
33
Fracking fluid
99.5% water & sand, then small amounts of a bunch of chemicals
34
Crude oil processing
Produced fluid separated into oil, water, gas
35
Onshore drilling environmental issues
wildlife effects, traffic, air pollution, water consumption, water pollution, waste, fires
36
World oil production (magnitude on/offshore split)
82Mbbl/day (81%onshore, 19%off)
37
US oil production (magnitude, on/off split)
5.7 Mbbl/day (76% onshore, 24% off [almost all offshore is gulf of mex])
38
Offshore drill rigs
drilling barge( <12000ft, deep waters)
39
Offshore platforms (2)
anchored (permanent, like a building) and floating (for marginally economic wells)
40
What causes offshore accidents?
bad casing, BOP failure, caves or extreme pressure, storms, impact w ships
41
Primary oil recovery (overview)
uses existing conditions; pumping | 12-15% recovery
42
Secondary oil recovery (overview)
injection of water or NG | additional 15-20% recovery
43
Tertiary oil recovery (overview)
injection of heat, liquids, chem/bio catalysts | 4-15% additional recovery
44
Primary recovery mechanisms (3,1)
``` natural ones: Gas cap expansion drive solution gas drive water drive not-natural: pumping ```
45
Secondary recovery mechanisms (2)
waterflooding: injecting water to displace oil | gas injection: reinjecting NG from the well where there isn't a market for NG
46
Reasons for low primary/secondary recovery (5)
``` strong capillary forces, high surface tension, high viscosity oil, heterogeneous reservoir low injected fluid density ```
47
Enhanced oil recovery
thermal, gas, chemical | dependent on cost of injection fluid vs cost of oil
48
Thermal recovery/steamflooding (4)
heat reduces viscosity of oils shallow reservoirs need to burn a fuel to make the steam 55% of CA oil
49
Gas injection recovery
usually CO2 or CH4; good for lighter oils
50
surfactant (chem) recovery
reduces interfacial tension--inject surfactants, polymers, alcohols not used commercially here since 80s
51
Oil shale
sedimentary rocks with kerogen; release oil during pyrolysis (heating w/o oxygen)
52
Tar sands
combination of sand, clay, oil can mine then separate can heat in-situ to recover oil
53
oil shale, tar sands environmental issues
Mining: habitats, water contam, waste, air from volatiles high energy, water requirements lots of GHG emissions compared to regular sources
54
Oil transportation
2/3 by tanker | land transport is mostly pipelines
55
MARPOL
marine pollution; governs international petroleum shipping
56
Oil shipping vulnerabilities
chokepoints: narrow channels that a lot of oil travels through Piracy
57
World tanker fleet
13000 tankers | single-hull tankers getting phased out
58
Oil tanker spill trends
Declined steadily since 70s
59
On-land transport
pipeline, rail, barge, truck
60
Pipelines & the environment
``` brush & land clearing habitats--migration barriers leakages explosions chemical contam ```
61
Categories of refinery products (4)
light distillates: aviation fuel, gasoline middle distillates: jet fuel, kerosene, diesel, heating oil fuel oil: marine fuel, crude oil other: refinery gas, solvents, pertroleum coke, lubricants, waxes, bitumen
62
Octane rating
measure of resistance to spontaneously igniting when compressed (causes knocking in engine)
63
EPA gasoline regulation (3)
Reformulated gasoline: burns cleaners, less smog, 30% of US gas Oxygenates: high octane, low CO Low Reid Vapor Pressure: reduces summary gas volatility
64
Private costs of gasoline (4)
crude oil refining marketing/distribution taxes
65
Social costs of gasoline (5)
``` traffic congestion traffic accidents local pollution climate change leakage ```
66
Basic refining processes (3)
Distillation cracking reforming
67
Distillation (refining process)
separates crude oil into fractions based on boiling points at different pressures light oils go to top, heavy stay at bottom of tower
68
Cracking (refining process)
splitting heavy hydrocarbon molecules into lighter ones w/heat, pressure
69
Reforming (refining process)
reforming and alkylation react lighter molecules to form complex, valuable ones
70
World refinery capacity
93 Mbbl/day
71
US refinery capacity
17 Mbbl/day
72
Refinery economics (5)
driven by price of crude oil, crude oil quality, cost of compliance, refinery location, "crack spread"
73
Refinery environmental issues
Air: SOx, NOx, PM, VOCs, CO2 Water: large volumes for processing, cooling Waste: sludge, spent reagents Ground contamination: lots of old refineries are superfund
74
How much US oil is imported?
1/2
75
What is oil used for in US?
2/3 transportation
76
API gravity
high: 30 degrees or more--light (more valuable) low: less than 20 degrees--heavy
77
Oil sulfur content
low sulfur: sweet (more valuable) | high sulfur: sour
78
Big picture history of oil
Discovery-->Rise of gasoline-->War, politics, globalization-->crises, scarcity, environmental awareness
79
OPEC's oil
72% of proved reserves, 42% world production, 9% world consumption, 47% US imports
80
US oil addiction costs
expensive! 1/2 trillion per year | 3-4% GDP
81
Oil & US economy
dependent! | After oil price shocks, US recessions
82
Global oil reserve holders
Middle East (Saudia arabia, UAE, Iran, Iraq, Kuwait), Canada, Russia
83
world oil shale distribution
77% in US
84
world tar sands & heavy oil distribution
mostly Canada, Venezuela
85
World oil producers
Middle east, europe, Americas
86
World oil consumers
Europe, US, China
87
Where does US oil come from?
US, Canada, Venezuela, Saudi,...
88
Oil price differences between countries
Mostly different taxes | also access, distance to oil