Vagabond Ventures Oil Group Searches For Fossil Fuels Spring 2013

Vagabond Ventures Oil Group

Searches For Searches For Fossil FuelsFossil Fuels

Spring 2013

Week 1: Geology & History of Fossil FuelsWeek 1: Geology & History of Fossil Fuels Week 2: Oil Exploration Week 2: Oil Exploration Week 3: Petroleum EngineeringWeek 3: Petroleum Engineering

Course OutlineCourse Outline

Week 4: ‘Vagabond Group’ proposes 2 prospectsWeek 4: ‘Vagabond Group’ proposes 2 prospects

Your chance to invest !Your chance to invest ! Week 5: ‘Vagabond Group’ plans productionWeek 5: ‘Vagabond Group’ plans production Week 6: Calculating the Payout?!Week 6: Calculating the Payout?!

The Basics:The Basics:

The Adventure:The Adventure:

A black-gold millionaire or dry hole hobo?A black-gold millionaire or dry hole hobo?

Today . . . .Today . . . .

Geology & History of Fossil Fuels

Geology & History of Fossil Fuels

• Geologic Time & Plate Tectonics Geologic Time & Plate Tectonics • What are ‘fossil fuels’ and What are ‘fossil fuels’ and how are they created?how are they created?• History & potential of peat/coalHistory & potential of peat/coal• History & potential of oil/gasHistory & potential of oil/gas

Today’s AgendaToday’s Agenda

5

GEOLOGIC TIMEGEOLOGIC TIME

AGE OF EARTH4.55 Billion Years

144.3 YEARS!144.3 YEARS!

IF YOU COUNTED EACH YEAR AT ONE YEAR PER SECOND,

YOU’D BE COUNTING CONTINOUSLY,24 HOURS A DAY, FOR

6


60

30

1545 31.65 minutesSingle cell life

begins

52.85 minutesEnd of

Precambrian

56.97 minutesStart of

Dinosaurs

59.14 minutesDinosaursExtinction

59.97 minutesHominids

arrive!

40.22 minutesMulti-cell life

begins

7.25 minutesAsteroids stop

7


Most of Geology is

here

PALEOZOIC MESOZOIC CENOZOIC

9


PALEOZOIC MESOZOIC CENOZOIC

11


12


WANT A COPY OF THESE TIMESCALES?

13


Now, let’s move on to another important geologic concept,

PLATE TECTONICS…

Go to our website at…www.vagabondgeology.com

USA

SA

ASIA

AUS

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- PLATE TECTONICS -- PLATE TECTONICS -

MAP OF THE WORLDLet’s take a closer look at the area in white

USAASIA

AUSSA

Pacific Plate

CocosPlate

NazcaPlate

Antarctic Plate

Australian Plate

Antarctic Plate

Eurasian Plate

NorthAmerican

Plate

Plate

PhilippinePlate


Earth’s surface broken into 7 major platesIn Geology they’re called “Tectonic Plates”

Australian Australian PlatePlate

Antarctic PlateAntarctic Plate

Pacific Pacific PlatePlate

North American PlateNorth American Plate

SouthSouthAmerican American

PlatePlate

African African PlatePlate

Eurasian Eurasian PlatePlate

These plates MOVE around on the surface

The movement is called “Continental Drift”



Remember this location at this time

Geology & History Geology & History of Fossil Fuelsof Fossil Fuels


Geology & History of Fossil FuelsGeology & History of Fossil Fuels- What are Fossil Fuels -- What are Fossil Fuels -

•Fuels formed by natural processes such as anaerobic decomposition of buried organic material

•Organic materials can be trees, branches, twigs, leaves, mosses, grasses, dead animals, algae, planktons, etc.

•Most common Fossil Fuels (in order of increasing burial depth/decomposition):

PeatPeat, , CoaCoal, l, Oil ShalesOil Shales, , OilOil, , GasGas•Non-fossil fuels are hydro, nuclear, wind, solar, biomass, geothermal, etc.

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- How are Fossil Fuels created -- How are Fossil Fuels created -

•350 million years ago (mya), time period known as the “Carboniferous Period”, North America is located on the equator


•“Carboniferous Period” includes the Mississippian (M) & Pennsylvanian (P) Epochs

•Permian Period (Pr)was 2nd most prolific coal period


•Most of the USA is underwater; swampy areas developing at the base of mountains


•Most of the USA is underwater; swampy areas developing at the base of mountains

Deep Sea

Shallow Sea

Primord

ial Swamps

Geology & History of HydrocarbonsGeology & History of Hydrocarbons- CARBONIFEROUS PERIOD -- CARBONIFEROUS PERIOD -

Geology & History of HydrocarbonsGeology & History of Hydrocarbons- CARBONIFEROUS PERIOD -- CARBONIFEROUS PERIOD -

400 ft!

260 ft!


•Hot, steamy, oxygen rich, CO2 rich causing plants and animals to grow LARGE!

http://www.classzone.com/books/earth_science/terc/content/visualizations/es0701/es0701page01.cfm?chapter_no=visualization


•Fluctuating temperature and repeated cycles of drying/flooding of swamps cause massive die-off of flora, leaving thick piles of decaying organic material

• Weathering sediments from mountain rivers flood over swamps from time to time robbing the decaying matter of oxygen. Layer upon layer the decaying organic matter is being buried.

•As organic materials are buried deeper & deeper they are exposed to increasing heat & pressure


•Increasing pressure & temperatures break down the organic material to varying degrees, depending on burial depth

•Initial decomposition of woody material forms PEAT

•Further burial and compression forms COAL


•Chart to right shows that PEAT is developed in shallow environments

•Four kinds of Coal: each forming as depth of burial increases

•After deep burial, coal strata are often uplifted and become accessible at much shallower depths

Name\Name\ LigniteLigniteSub-Sub-

bituminousbituminous BituminousBituminous AnthraciteAnthraciteNickname\ (brown coal) (hard coal)

Moisture high less high low very low

Carbon Content, % 60-75% 75-85% 85-91% >91.5%

Volatiles, % 45-65% 28-45% 12-28% <6-12%

Heating Value, kbtu/lb 4-8.3 8.3-13 10.5-15.5 15

% of USA Coal Reserves 9% 38% 50% 2%

Mining Source TX,ND WY,MT AL,WV,KY, IL,IN,OH,PA PA

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Coal Comparison -- Coal Comparison -

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- How are Fossil Fuels made -- How are Fossil Fuels made -

• Increased burial depth develops a decomposing organic ooze containing important Kerogen compounds

•Further burial and compression generates a high enough temperature and pressure to “crack” (breakdown) kerogen

• If the organic material is low in cellulosic material, e.g., algae, plankton, diatom, etc., cracking results in oil & gas

1

1 1/2

2

2 1/2

Depth, mi

3

90°

160°

190°

250°

300°

Temp,°F


• Oil is formed at 160 to 290degF, known as the “Oil Window”; 290 to 440degF is the “Natural Gas Window”


• Oil is formed at 160 to 290degF, known as the “Oil Window”; 290 to 440degF is the “Natural Gas Window”

• BUT, if the kerogen is very old, these windows could drop to: OIL- 85 to 200degF; GAS- 200 to 360degF

• Deep burial and decomposition can take millions of years, (sometimes 600+ million yrs) therefore fossil fuels are not considered a renewable resources



PEAT

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Overview of PEAT-- Overview of PEAT-

• an accumulation of an accumulation of partially decayed partially decayed vegetationvegetation. Most . Most common component is common component is SphagnumSphagnum moss moss

• Forms in wetland Forms in wetland conditions where conditions where flooding flooding obstructs flows obstructs flows of oxygen from the of oxygen from the atmosphere, reducing atmosphere, reducing rates of decompositionrates of decomposition

http://www.fi.edu/guide/dukerich/intro2.html


•Peatlands cover a total of +/- 3% of global land area


•Approximately 60% of world's wetlands are peat

Peat hand dug from a glacialPeat hand dug from a glacial bog in Scotlandbog in Scotland


http://www.uky.edu/KGS/coal/coalform.htm

Commercial peat operation, Ireland


Russia, Canada & USA have the Russia, Canada & USA have the largest reserves of PEATlargest reserves of PEAT


• Peat reserves distribution on 6 of the 7 continents

• North America, Europe & Asia constitute 90% of world’s peatlands

Peat bog

• 95% of Peat harvested in the USA is used for supplementing soil

• As a result, harvesting As a result, harvesting techniques are techniques are differentdifferent

• Vacuum trucks suck up Vacuum trucks suck up the the top 1/4 inches top 1/4 inches of of peat at a timepeat at a time


• Florida, Michigan, and Florida, Michigan, and Minnesota Minnesota are the leading are the leading producers of peat in the USAproducers of peat in the USA

• 2 to 3 inches 2 to 3 inches of peat bog can of peat bog can be harvested each yearbe harvested each year

COAL

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Overview of COAL-- Overview of COAL-

• Coal (from the Old English term col, "mineral of fossilized carbon") is a combustible sedimentary rock occurring in rock strata called coal beds or coal seams

• What’s a “Sedimentary” rock?

http://www.stovesonline.co.uk/how-coal-formed.html

Geology BasicsGeology Basics- Rock Cycle -- Rock Cycle -

• Only 3 types of rock exist on the planet:

• SedimentarySedimentary• MetamorphicMetamorphic• IgneousIgneous

http://www.ket.org/trips/coal/agsmm/agsmmhow.html

http://www.fi.edu/guide/dukerich/intro2.html




• They are inter-They are inter-related as depicted related as depicted in a diagram called, in a diagram called, the “the “ROCK CYCLEROCK CYCLE””




• They are inter-They are inter-related as depicted related as depicted in something called, in something called, the “the “ROCK CYCLEROCK CYCLE””

• The 3 types of rock The 3 types of rock leads to 24 different, leads to 24 different, individual rocksindividual rocks

Now, back to COAL


• Coal contains mainly carbon; conversion of dead vegetation into coal is called carbonization

• Coal is found in Precambrian strata, which predate land plants — this coal is presumed to have originated from residues of algae

• Coal is also found in later geological periods as well. The exception is the coal gap in the Permian–Triassic extinction event, where coal is rare PRE-CAMBRIAN%

Gen

era

dis

app

ear

ance

http://www.ohiodnr.com/Portals/10/pdf/EL/el08.pdf


• most widely distributed fossil fuel

• mined in 100 countries on all continents except Antarctica


•Britain: 3000-2000 BC outcrop of coal used for funeral pyres

•Fu Shun, China: 1000 BC used for smelting copper


• Two methods of producing coal:

• Surface Surface MiningMining

• Underground Underground MiningMining

http://epcamr.org/home/content/amd-amr-and-more-alphabet-soup/coal-types-formation-and-methods-of-mining/

http://education.nationalgeographic.com/education/encyclopedia/coal/?ar_a=1


•USA coal fields are largest in the world (22.6% OF WORLD TOTAL)

Anthracite

Low volatile Bituminous

Other Bituminous

Sub-Bituminous

Lignite

Proved/Possible

INC

RE

AS

ING

VA

LU

E

SWAMP/MARSH COAL

WHAT’S HAPPENING

HERE?

http://www.grida.no/graphicslib/detail/peat-distribution-in-the-world_8660

Rivers bring

organic rich

sands & muds to coastal bays,

swamps, &

marshes

Sand = future sandstone

Mud (clay) = future shale


Rising/ Falling

sea level moves

deposits to

ocean; ocean

currents move &

sort deposits

Massive Massive accumulation of accumulation of

sediments form in sediments form in the Gulf of Mexicothe Gulf of Mexico

This same This same transport/distribute/transport/distribute/

sorting process sorting process happened in the happened in the

past over geologic past over geologic timetime

Millions of years

ago, East &

SE Texas and

southern LA

didn’t exist


Coastal bays,

swamps &

marshes were more

interior to

country; early

deposits are there

As deposits move the coastline into the GOM,

coastal bays,

swamps &

marshes are then

deposited there

As a result of

this coastline change, massive amounts

of sediments

are located in Texas &

LA’s interior & in the Gulf of Mexico


As a result of

this coastline change, massive amounts

of sediments

are located in Texas &

LA’s interior & in the Gulf of Mexico

Early onshore, woody deposits have been

converted to young coal, LIGNITE; let’s have a look

Lignite at or near the surface in

TexasLet’s look at how Lignite is mined

in Texas


Open Pit Lignite Mining, TexasOpen Pit Lignite Mining, Texas

Huge drag-line crane removes rock covering the lignite layer

Continuous belt

conveyer digs up lignite

layer and loads

lignite into huge dump

trucks

Dump trucks move

lignite to nearby

furnaces to be burned to make

electricity


This is calledThis is calledSURFACE MININGSURFACE MINING

What if the coal is buried

deeper?

Then there is a Then there is a need for need for

UNDERGROUND UNDERGROUND MININGMINING

Let’s take a look…

- buried deposit: underground mines

SEDIMENTARY ROCK LAYERSSEDIMENTARY ROCK LAYERS

SOIL

COAL LAYER

Where did it all start?

earliest


How does it work today?

HOW IT’S DONE TODAY?

Two methods of recovering coal from underground deposits: -room & pillar mining -long wall mining


most common underground mining most common underground mining techniquetechnique


COAL LAYER

COALSURFACE

SSHHAAFFTT

grid of corridors20-30’ wide

(extracted coal)

coal columns 100’ wide

hold up roof

‘retreat mining’pillars are mineduntil ceiling falls

most common underground mining most common underground mining techniquetechnique





How does it work today?

1 - surface mines2 – underground mines

- room & pillar mines- long wall mines

COAL

COAL LAYERORIGINAL

COAL LAYER

MINING


COAL LAYER

COLLAPSED ROOF MATERIAL

COAL FACE

7000’ X 800’mining zone

mining zone


COAL LAYER

COLLAPSED ROOF MATERIAL

COAL FACEmining zone

mining zone

miningminingmachinemachine


http://www.peatsociety.org/peatlands-and-peat/global-peat-resources-country

mining zone

mining zone



http://www.eolss.net/Sample-Chapters/C08/E3-04-06.pdf

COAL

mining zone

mining zone






So, who has coal reserves?


22%

USA

14%

Russia13%

China9%

Australia

7%

India

% of

%% of Coal Production of the World of Coal Production of the World

15%15%

6%6%

6%6%

5%5%

all others: 35%

48%48%

all others: 20%all others: 20%

Reserve Life (years)

241 yrs

495 yrs

35 yrs!

world average: 118

180 yrs

106 yrs


•USA coal fields are largest in the world (22.6% OF WORLD TOTAL)

Anthracite

Low volatile Bituminous

Other Bituminous

Sub-Bituminous

Lignite

Proved/Possible

INC

RE

AS

ING

VA

LU

E

Any questions on Peat or Coal?

http://www.energyquest.ca.gov/story/chapter08.html



Rivers bring

organic rich

sands & muds to coastal bays,

swamps, &

marshes

Sand = future sandstone

Mud (clay) = future shale

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Overview of O&G -- Overview of O&G -

Rising/ Falling

sea level moves

deposits to

ocean; ocean

currents move &

sort deposits

Massive Massive accumulation of accumulation of

sediments form in sediments form in the Gulf of Mexicothe Gulf of Mexico

Remember this diagram when talking about river sediments transported to the Continental

Margin?

and this Geosyncline is bending the crust

Hinge Line

rising

Sinking

Causing some areas

to rise & some to sink

This massive accumulation

is called a Geosyncline

A thick (1000’s of feet)

accumulation of rock debris

(sediments) in the ocean at the

continental margin


Situation is similar to a “seesaw”

Mr. Geosyncline!Mr. Geosyncline!


OceanRocks of the Iberian continental crust

land River debris

river debris atContinental

Margin

Geosyncline

Cross-section of Continent

New Orleans

Subsurface Cross Sections: Gulf of Mexico

Austin

Sun City

Gulf of Mexico Geosyncline

SandstoneRocks

65,

00

0 fe

et t

hic

k

Modern day Gulf of Mexico

rising

SinkingHin

ge L

ine


12.3 mithick!

Shale Rocks

Geology and Oil & Gas Fields: GOM

Aerial extent of Gulf of Mexico GEOSYNCLINE

IN FACT, coal deposits are also found in geosynclines

Ouachita-A

ppalachian-Geosynclin

e

Ouachita-A

ppalachian-Geosynclin

e

Paradox-Wind River Paradox-Wind River GeosynclineGeosyncline


Central Texas

Geosynclines are an important source of most fossil fuels; O&G wells shown here

Grey=dry holes!

More to come on O&G in the weeks ahead!

REMEMBER…REMEMBER…

GEOLOGY ROCKSGEOLOGY ROCKS94

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Overview of PEAT, COAL, Oil & Gas -- Overview of PEAT, COAL, Oil & Gas -

THANK YOU!

THANK YOU!

THANK YOU!

THANK YOU!

What we’ll use to make our investment decisions

maps

cross sections

Land-lease reports

Next week . . . . Oil exploration!

Until then . . . . visit our website:

vagabondgeology.com

ANY QUESTIONS??96

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- Overview of PEAT, COAL, Oil & Gas -- Overview of PEAT, COAL, Oil & Gas -

All class material either is All class material either is or or

will be on will be on 1) the University’s website1) the University’s website

and onand on

2) Our website at:2) Our website at:

www.vagabondgeology.comwww.vagabondgeology.com

http://www.classzone.com/books/earth_science/terc/content/visualizations/es0701/es0701page01.cfm?chapter_no=visualization http://www.fi.edu/guide/dukerich/intro2.html http://www.uky.edu/KGS/coal/coalform.htm http://www.stovesonline.co.uk/how-coal-formed.html http://www.ket.org/trips/coal/agsmm/agsmmhow.html http://www.fi.edu/guide/dukerich/intro2.html http://www.ohiodnr.com/Portals/10/pdf/EL/el08.pdf http://teachertube.com/viewVideo.php?video_id=40991 http://epcamr.org/home/content/amd-amr-and-more-alphabet-soup/coal-types-formation-and-methods-of-mining/ http://education.nationalgeographic.com/education/encyclopedia/coal/?ar_a=1 http://www.grida.no/graphicslib/detail/peat-distribution-in-the-world_8660 http://www.sourcewatch.org/index.php?title=Coal_plant_conversion_projects http://www.peatsociety.org/peatlands-and-peat/global-peat-resources-country http://www.eolss.net/Sample-Chapters/C08/E3-04-06.pdf http://www.energyquest.ca.gov/story/chapter08.html http://pubs.usgs.gov/of/1996/of96-092/map.htm http://pubs.usgs.gov/of/2007/1303/ http://pubs.er.usgs.gov/publication/70041041 http://pubs.usgs.gov/of/1998/of98-036/pdf/tables/tbl01.pdf http://www.space-travel.com/reports/Do_We_Need_Oil_From_Outer_Space_999.html http://www.eoearth.org/article/Peat http://www.gpnmag.com/harvesting-peat http://www.tshaonline.org/handbook/online/articles/dku01 http://geology.geoscienceworld.org/content/17/1/38.abstract

http://en.wikipedia.org/wiki/Abiogenic_petroleum_origin http://en.wikipedia.org/wiki/Carboniferous http://en.wikipedia.org/wiki/Kerogen#Type_III http://en.wikipedia.org/wiki/Geopolymers http://en.wikipedia.org/wiki/Hydrocarbons http://en.wikipedia.org/wiki/Petroleum http://en.wikipedia.org/wiki/Fossil fuels http://en.wikipedia.org/wiki/Peathttp://en.wikipedia.org/wiki/Wetland http://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Conglomerate_(geology) http://en.wikipedia.org/wiki/Sandstone http://en.wikipedia.org/wiki/Siltstone http://en.wikipedia.org/wiki/Shale http://en.wikipedia.org/wiki/Ice_ages http://www.youtube.com/watch?v=e_CcrgKLyzc&feature=player_embedded http://en.wikipedia.org/wiki/List_of_bogs http://en.wikipedia.org/wiki/Longwall_mining http://en.wikipedia.org/wiki/Wind_River_Range http://en.wikipedia.org/wiki/Hydrocarbon_exploration http://www.youtube.com/watch?feature=player_embedded&v=jvdMkKFqdm8 http://www.tshaonline.org/handbook/online/articles/dku01 http://geology.geoscienceworld.org/content/17/1/38.abstract

Geology & History of Fossil FuelsGeology & History of Fossil Fuels- References-- References-

http://pubs.usgs.gov/of/1996/of96-092/map.htm

http://pubs.usgs.gov/of/1996/of96-092/map.htm

http://pubs.usgs.gov/of/2007/1303/

http://pubs.er.usgs.gov/publication/70041041

http://pubs.usgs.gov/of/1998/of98-036/pdf/tables/tbl01.pdf

http://www.space-travel.com/reports/Do_We_Need_Oil_From_Outer_Space_999.html

http://www.eoearth.org/article/Peat

http://www.gpnmag.com/harvesting-peat

http://www.tshaonline.org/handbook/online/articles/dku01

http://geology.geoscienceworld.org/content/17/1/38.abstract


http://en.wikipedia.org/wiki/Abiogenic_petroleum_origin

http://en.wikipedia.org/wiki/Carboniferous

http://en.wikipedia.org/wiki/Kerogen

http://en.wikipedia.org/wiki/Geopolymers

http://en.wikipedia.org/wiki/Hydrocarbons

http://en.wikipedia.org/wiki/Petroleum

http://en.wikipedia.org/wiki/Fossil%20fuels

http://en.wikipedia.org/wiki/Peat

http://en.wikipedia.org/wiki/Wetland

http://en.wikipedia.org/wiki/Coal

http://en.wikipedia.org/wiki/Conglomerate_(geology)

http://en.wikipedia.org/wiki/Sandstone

http://en.wikipedia.org/wiki/Siltstone

http://en.wikipedia.org/wiki/Shale

http://en.wikipedia.org/wiki/Ice_ages

http://www.youtube.com/watch?v=e_CcrgKLyzc&feature=player_embedded

http://en.wikipedia.org/wiki/List_of_bogs

http://en.wikipedia.org/wiki/Longwall_mining

http://en.wikipedia.org/wiki/Wind_River_Range

http://en.wikipedia.org/wiki/Hydrocarbon_exploration

http://www.youtube.com/watch?feature=player_embedded&v=jvdMkKFqdm8

http://www.tshaonline.org/handbook/online/articles/dku01


http://www.lib.utexas.edu/maps/pennsylvania.html



http://en.wikipedia.org/wiki/Organic_chemistry

http://en.wikipedia.org/wiki/Chemical_compound

http://en.wikipedia.org/wiki/Sedimentary_rock


http://en.wikipedia.org/wiki/Organic_chemistry

http://en.wikipedia.org/wiki/Solvent

http://en.wikipedia.org/wiki/Molecular_mass

http://en.wikipedia.org/wiki/Atomic_mass_unit

http://en.wikipedia.org/wiki/Atomic_mass_unit

http://en.wikipedia.org/wiki/Asphalt

http://en.wikipedia.org/wiki/Asphalt

http://en.wikipedia.org/wiki/Crust_(geology)

http://en.wikipedia.org/wiki/Celsius_scale

Travel is fatal to prejudice, bigotry, Travel is fatal to prejudice, bigotry, and narrow-mindedness… and narrow-mindedness…

Broad, wholesome, charitable views of Broad, wholesome, charitable views of men and things cannot be acquired by men and things cannot be acquired by

vegetating in one little corner of the vegetating in one little corner of the earth all one's lifetime. earth all one's lifetime.

~Mark Twain~Mark Twain

““Twenty years from now Twenty years from now you will be more disappointed by the you will be more disappointed by the things you didn’t do than by the ones things you didn’t do than by the ones you did do. So throw off the bowlines, you did do. So throw off the bowlines, sail away from the safe harbor. Catch sail away from the safe harbor. Catch

the trade winds in your sails. the trade winds in your sails. Explore. Dream. Discover.” Explore. Dream. Discover.”

– – Mark TwainMark Twain

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Vagabond Ventures Oil Group Searches For Fossil Fuels Spring 2013