PETROLEUM EXPLO Flashcards
Upstream Petroleum life cycle
Pre Concession - indetify prospective basins conduct basin analysis
Concession - apply for service contacts PECR
Exploration - Search for Oil and Gas w/in applied service contact and integrate data to form drillable prospects
Appraisal - Delineat the volume of reseres and drill additional appraisal well
Development - builsing of surface and subsurface faiclities
substantial investment requires
Production - Extraction, Processing and Exportation
Abandonment - Decomissioning
Types of Exploration Area
1) Established Oil Province
2) Frontier (New)
Regalian Doctrine
Article 12 Section 2
Law that mandates DOE to spearhead any energy exploration, development, utilization, distribution and conservation
RA 7638 DOE Act of 1992
Phases of Oil and Gas Field
1) Exploration - Wildcat Well
2) Appraisal - drill more wells to establish extent
3) Developmet - Wells drilled for exploitation of reserve
4) Maintenance
5) Abandonment - Unprofitable already
A geophysical technique similar to an ultrasound that is used to develop images of the subusface
Recrordng and interpreating arfticially induces shock waves in the earth
Seismic Reflection Survey
Info that can be provided by Seismic Survey
Bed Thickness
Geometry
Rock Type
Faulting and Fracturing
and sometimes, liquid present
Both source and detectors are moved along a straigh line
2D Reflection Seismic survey
Detectors are spread out over and area and the source is moved from location to locations within the area
3D Reflection Seismic Survey
Exact repetition of a 3D survey at two or more time intervals with the prime objective to MAP Movement of fluids interfaces in producing oil and gas reservoir
4D Reflection Seismic Survey
Surveys used to determine Geometry and depth of covered geological structures using the unique density and magnetic suscpetibility signatures compared to surrounding rocks
Density and Magnetic Surveys
Used to Map surface distribution of stratigraphy and its sturcture which can be used to delineate potential hydrocarbon accumulatio
Seismic Surveys
How is onshore sesimic survey conducted?
1) Shot holes are drilled where explosive are denoated to send energy waves down the strata
2) Waves are reflected back to the surface and picked up by geophones connected by a seismic cable to the recording instruments
How is offshore seismic survey conducted?
with the use of airgunds and streamers with hydrophones towed by a marine seismic vessel
What is the Signal to Noise ratio favorable for processing?
High Signal to Noise Ratio
Collective term that covers technically recoverable quantities of petroleum classified accordin to the maturity of the project that is necessary to revocer
Resources
Refers to the total amount of oil present in the field before production has started
STOOIP (Stock Tank Oil Originally in Place)
STOOIP Formula
Volume x Net to Gross Factor x Porosity x HC Saturation / Formation Volume Factor
Portion of oil and gas that is recoverable under economic constraints
RESERVE (Portion)
Percentage of oil and gas that is economically recoverable
Recovery Factor (Percentage)
RESERVE COMPUTATION for PETROLEUM
Reserve = (Area x Height x Porosity x HC Saturation x Recovery Factor) / Formation Volume Factor (FVF)
Hydroacrbon saturation is equal to
1 - water saturation
A well in a undrilled Area
Wildcat well
A well in a new area with uknown producing potenrial
Exploratory Well = Wildcat
Additional well drilled after discovery to confirm size of hydrocarbon deposit
Appraisal Well
A secondary well after the discovery well drilled to help determine field extent, volume and production rate
Confiramtion well or Delineation well
Drilled after the discovery and appraisal well to develop hydrocarbon production potential of the field
Development well
A well that produces HC in commecial quantities
Production well
A well either specifically drilled especially in poor producer that is converted to inject fluids to stabilize the decline in pressure on a producing zone
Injection Well
A well determined to determine stratigraphy of area
Stratigraphic Well
Well drilled vertically into the subsruface
Vertical well
Well drilled at an angle from the vertical >10deg
Deviated well
Well drilled by deviation drillinga nd tracks the dip of a subsurface reservoir (80-90 deg)
Horizontal Well
Last phase of exploration
Drilling
Opeartion on a well designed to demonstrate the existence of moveable petroleum in a reservoir by estabilighing flow to the surface
Flow Test
Operates at water up to 12,000 ft Depths
Drillship
Operates at water depths up to 10,000 ft
Semisubmersible
Operates at water depths up to 500 ft
Jack-up Rig
Operates at relatively shallow ater
Drilling Barge
Metal structures erected over an oil well in which tools for drilling are raised and lowered (Usually ung mukang satellite tower)
Derrick
Mechanichal device that is mounted on the top of the derrick which has several pulleys and with the traveling block, it supports the drill pipes
Crown Block
Device that circulates the mud in the drilling rig
mud pump
Basin that contains mud which is used mainly to cool and lubricate the bit and to remove debris
Mud Pit
Halllow steel rods that are joined together according to the depth of the excavation and their rotation activates the bit
Drill pipe
Heavy Steel Tube immediately above the bit that applies a certain weight to the bit to help it cut into the rock
Drill collar
Spaces Between the drill Pipe and the rock
annulus
Rotating drill blade with toothed steel or dimanod wheels
Drill Bit
How much is the onshore well drilling
$6M - $15M US
Cost of offshore wells
$20M-$50M
The percentatgge of the oil/gas in place which is economically recoverable
Recovery Factor (Percentage)
Utilizes the natural energy present in the reservoir to drive production
Primary Recovery
Incomings and outgoings of cash representing activities of an organization
Cash flow
Inflow - outflows in a given period
Net Cash Flow
Expenses incurred to buy fixed assests or to add to the value of an exiting fixed asses with a useul life extending beyond the taxable year
CAPEX
Ongoing cost for running a product, businessm or system
OPEX
Oil and Gas Price units
$US/BBL
$US/cu feet
MMBTU
The sum of the present values of incoming and outgoing cash flows over a period of time
Net Present Values (NPV)
Measure and compare the proftability of investement
Internal Rate of Return(IRR)
period of time required for ROI
Payback period
Total weighted outcomes associated with a decision
Expected Monetary Value (EMV)
Revenue shared after decductions
Total Government Take
Company Take
