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The QuestThe Questfor Energyfor EnergyThe Petroleum IndustryThe Petroleum Industry

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Discovering and Discovering and Producing PetroleumProducing PetroleumInterpreting the UnseenInterpreting the Unseen

Silicon GraphicsSilicon Graphics

• Trap• Source• Charge

• Tools- Gravity- Magnetics- Seismic - Wells

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Petroleum System ElementsPetroleum System Elements

• Source RockSource Rock -- A rock with abundant hydrocarbon-prone A rock with abundant hydrocarbon-prone organic matterorganic matter

• Reservoir RockReservoir Rock - A rock in which oil and gas accumulates: - A rock in which oil and gas accumulates:- Porosity - space between rock grains in which oil - Porosity - space between rock grains in which oil

accumulatesaccumulates- Permeability - passage-ways between pores through - Permeability - passage-ways between pores through which oil and gas moveswhich oil and gas moves

• Seal RockSeal Rock - A rock through which oil and gas cannot move - A rock through which oil and gas cannot move effectively (such as mudstone and claystone)effectively (such as mudstone and claystone)

• Migration RouteMigration Route - Avenues in rock through which oil and - Avenues in rock through which oil and gas gas moves from source rock to trapmoves from source rock to trap

• TrapTrap - The structural and stratigraphic configuration that - The structural and stratigraphic configuration that focuses oil and gas into an accumulationfocuses oil and gas into an accumulation

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Hydrocarbon Trap TypesHydrocarbon Trap Types

American Petroleum Institute, 1986American Petroleum Institute, 1986

Salt DomeFault

Unconformity

Pinchout

Anticline

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The Basic TrapThe Basic Trap

GasGas

OilOil

WaterWater

Petroleum Accumulates in AnticlinesPetroleum Accumulates in Anticlines

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Petroleum System ElementsPetroleum System Elements

24803

Petroleum System ElementsPetroleum System Elements

Source RockSource Rock

Top Seal RockTop Seal Rock

Reservoir RockReservoir Rock

Anticlinal TrapAnticlinal Trap

(Organic Rich)(Organic Rich)

(Impermeable)(Impermeable)

PotentialPotentialMigration RouteMigration Route

(Porous/Permeable)(Porous/Permeable)

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Seismic Imaging of AnticlineSeismic Imaging of Anticline

Vibrator Truck(Energy Source)Recording Truck Geophone

(Receivers)

American Petroleum Institute, 1986American Petroleum Institute, 1986

ReturningReturningSound WavesSound Waves

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Seismic Image of AnticlineSeismic Image of Anticline

10001000

20002000

30003000

Mill

isec

onds

Mill

isec

onds

1 km1 km

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World Fuel Consumption: 1970-1994World Fuel Consumption: 1970-1994

Cook and Sheath, 1997Cook and Sheath, 1997

Mill

ion

tonn

es o

il eq

uiva

lent

Mill

ion

tonn

es o

il eq

uiva

lent

YearYear

8,0008,000

7,0007,000

6,0006,000

5,0005,000

4,0004,000

3,0003,000

2,0002,000

1,0001,000

00

1970

1970

1972

1972

1974

1974

1976

1976

1978

1978

1980

1980

1982

1982

1984

1984

1986

1986

1988

1988

1990

1990

1992

1992

1994

1994

OilOil

Natural GasNatural Gas

Nuclear EnergyNuclear Energy

HydroelectricityHydroelectricity

CoalCoal

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Projected World Energy SuppliesProjected World Energy Supplies

Equivalentper (GBOE)

Equivalentper (GBOE)

024839-2

19001900 19201920 19401940 19601960 19801980 20002000 20202020 20402040 20602060 20802080 30003000

2020

4040

6060

8080

100100100 BILLION

BARRELS

Billion Barrels

of Oil

Year

Billion Barrels

of Oil

Year Natural

GasNatural

Gas

HydroelectricHydroelectric

Crude OilCrude Oil

Solar, Wind Geothermal

Nuclear Electric

1993

CoalCoal

24929

Decreasing

Decreasing

Fossil F

uelsF

ossil Fuels

Ne

w T

echno

logies

Ne

w T

echno

logies

World Energy DemandWorld Energy Demand

after Edwards,AAPG 8/97

Careers inCareers inOil & GasOil & Gas

Remain ImportantRemain Important

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Global ExplorationGlobal Oil and Gas Fields

GasGasOilOil

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US PetroleumUS PetroleumOccurrenceOccurrenceGulf of Mexico is only Gulf of Mexico is only significant, economicsignificant, economicprovince remainingprovince remaining

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Geoscience Demographics in 1998Geoscience Demographics in 1998For a Typical Major Oil CompanyFor a Typical Major Oil Company

7676

140140

255255

191191

9090

4848

151533

2323

00

5050

100100

150150

200200

250250

300300

>25>25 26-2926-29 30-3430-34 35-3935-39 40-4440-44 45-4945-49 50-5450-54 55-5955-59 60+60+

Age (yrs)Age (yrs)

Age Brackets for Geoscientists Worldwide

Insuffic

ient Replace

ment

Insuffic

ient Replace

ment Increasing Retirement

Increasing Retirement

1975-83 Boom Hiring1975-83 Boom Hiring

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Global ExplorationGlobal ExplorationOpportunities for Future Growth

VenezuelaVenezuelaW. AfricaW. Africa

GOM includingGOM includingMexicoMexico

CaspianCaspian SakhalinSakhalin

VietnamVietnam

Australia Australia BrazilBrazil

W. SiberiaW. Siberia

India India

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State of the Industry and the State of the Industry and the CountryCountry

• 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 East What 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

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

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Relatively cheap energy Relatively cheap energy

• Global warming and sea-level change: combustion Global 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 thresholdthe 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 The cost of gasoline in the US vs. the rest of the

worldworld