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Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012 Prior to the Pump: How we Find and Extract Oil

Prior to the Pump: How Do We Find and Extract Oil?

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Page 1: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Prior to the Pump:How we Find and Extract Oil

Page 2: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Agenda

Overview

Finding the Reservoir

The Drilling Phase

Formation Evaluation

Producing the Reservoir

Looking Forward

Conclusion

Page 3: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

OVERVIEW

Page 4: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

The Oil Industry

Downstream Midstream Upstream

Page 5: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Dissecting Upstream

Reservoir

Characterization

Drilling

Production

Life Cycle

of a Well

Page 6: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

FINDING THE RESERVOIR

Page 7: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Seismic

Page 8: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Seismic

Page 10: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

THE DRILLING PHASE

Page 11: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

The Rig

Page 12: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Drilling Program

Page 13: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Measurements While Drilling

• Set of tri-axial accelerometers and magnetometers measure direction

• Collar mounted strain gauge to measure weight on bit, torque, and torsional vibration

• Turbine assembly powers MWD and LWD tools

Page 14: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Casing and Cementing

Page 15: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

FORMATION EVALUATION

Page 16: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Open Hole

Formation type is determined by the amount of naturally occurring gamma rays read by a detector

Resistivity is measured by shifts in attenuation and phase shift properties in an electromagnetic field sent into the formation

Density is determined by bombarding the formation with radioactive waves and measuring the energy of the waves returning

Porosity is determined by bombarding the formation with neutrons and counting how many return from the formation

Page 17: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Open Hole

MDT

Page 18: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Cased Hole

Page 19: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

PRODUCING THE RESERVOIR

Page 20: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Well Stimulation

• Pump viscous fluids downhole to break the rock

• Want to increase permeability

• Can be mechanically or chemically driven

• Ultimate goal is to create infinite conductivity

Page 21: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Artificial Lift

Page 22: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Enhanced Oil Recovery

Can recover up to 60% of the reservoir

Injection Wells• Gas• Water• Thermal

Page 23: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

LOOKING FORWARD

Page 24: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Why Unconventional Oil Sources?

Predicted World Oil Supply (million bbl/d)

Source: IEA World Energy Outlook 2010

Page 25: Prior to the Pump: How Do We Find and Extract Oil?

Presented by Megan Hughes, SWE ‘12 Conference,, Nov 8, 2012

Conclusion

• The oil industry is split into three main categories

• There is a tremendous amount of technology involved upstream

• This technology and more will be needed to fuel the world’s oil demand