Lecture 1

Introduction

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Fundamentals of Petroleum Exploration

What is petroleum exploration?
Its the science of understanding the formation,
exploration and extraction of oil & gas.
Its the upstream side of the petroleum industry

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Lesson Plan
Introduction
Overview of Petroleum Exploration
Origin of Gas, Oil

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About the Lecturer

Dr Sandeep Narayan Kundu
Email: geosnk@nus.ed.sg Office: AS3-03-11

Education
PhD (Geology), MScTech (Applied Geology), MSc (GIS)

Experience
16 years in Industry
Fugro Surveys, Reliance E&P, BHP Billiton

Research Interests
GIS & Remote Sensing Applications
Statistical Modeling of Geosciences
Sedimentary Geology

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Module Description
The existence of commercial deposits of oil and gas depends
on geological conditions. These include the presence of a
source rock, a reservoir rock and a geological structure to
migrate trap and concentrate hydrocarbons.
This module focuses on the sedimentary cycle and its
significance for understanding the subsurface environments in
which hydrocarbon resources accumulate. The module
provides a useful introduction to geological information used
by the upstream petroleum industry.

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Learning Outcomes
This module provides student with a glimpse of this world of
geoscience in action. This will provide students with an
appreciation of the kind of skills and activities employed in the
upstream petroleum industry, an increasing important sector in
Singapore.
The lectures and seminars will focus on introducing topics
including sedimentology, carbonate systems and reservoir
structure. This is supported through practical exercises in
geological map interpretation and seismic survey.

Its all about finding Petroleum

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Assessments
60% Continual Assessment
2 individual assessments (10 + 10%)
1 group presentation/report (10 + 20%)
Mid-semester test Week 7 (10%)

40% End of Semester Examination

Lectures and Lab/Tutorials are compulsory
Saturday Excursion in Week 6 (Sept 20th) is not compulsory
BUT you are strongly advised to attend as this will greatly add
to your knowledge and experience and help you in the
lab/tutorials and exam
Lecture PPTs shall be posted the previous week
Some lectures may have breeze video versions available in IVLE

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Syllabus & Timetable

Week 1
Week 2
Week 3
Week 4
Week 5
Week 6

: Introduction-Origin of petroleum
: Migration, traps, seals and reservoirs
: More traps. Exploration, drilling, logging. Lab/Tut : Seismic interpretation*.
: Wireline logging, stratigraphy and sedimentology.
: Sandstones and shale. Lab/tut Sedimentary Rocks*
: Limestones. Allocation of Group Presentations/Individual Reports.
Excursion to Sentosa, afternoon of 19th Sept.
RECESS WEEK
Week 7 : Sedimentary basins. Mid-semester test 1st Oct during lecture.
Lab/tut: Preparation for Group Presentations.
Week 8 : Reservoir appraisal.
Week 9 : Petroleum production. Lab/Tut: Group Presentations to Class.*
Week 10: Oil, Environment & Climate Change (OR Invited Lecture)
Week 11: Petroleum Exploration & Production in SE Asia. Lab/Tut: Map Interpretation*
Week 12:The Future of Oil & Gas.
Week 13: SEAPEX Oil Barrel Prize: Presentation by Finalists*.
Hand in group reports by the end of Week 13.
*assessed

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Minor in Petroleum Exploration

The Minor in Petroleum Exploration would appeal to
students who are interested in the upstream petroleum
industry. Singapore is the world class hub for the
petroleum industry in Southeast Asia.
Starting in 2008, the Southeast Asian Exploration
Society (SEAPEX) funded a Visiting Senior Fellow to
teach the geosciences in NUS.
According to a survey in Nature (13th May 2011, Earth
Works, (473):243-244), there will be 13,000 unfilled
petroleum geosciences jobs in the USA by 2030.

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Minor in Petroleum Exploration

By 2018 there will be a 28% increase in geosciences
jobs compared to 2008, 35 % if retirements are
included. These trends will undoubtedly be followed in
Southeast Asia.
Salaries for recent graduate petroleum geoscientists are
among the highest (American Association of Petroleum
Geologists, Explorer April, 2012).
Therefore, NUS has introduced a new Minor in
Petroleum Exploration (with funding from SEAPEX
and the Singapore Economic Development Board).

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Minor in Petroleum Exploration

A student who wishes to graduate with a Minor in
Petroleum Exploration will take their normal 1st year
foundation modules.
In the 2nd, 3rd or 4th year they will elect to take
modules such as

GE3244 Fundamentals of Petroleum Geoscience,

GE2230 Energy Futures,
GE3243 Sediments and Sedimentary Basins,
GE3242 Applied Petroleum Exploration

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Minor in Petroleum Exploration

So sign up Now!!

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SEAPEX, or the South East Asia Petroleum Exploration

Society is a non-profit organization that was established in
1973. A voluntary organization SEAPEX has developed itself
to have over 1,600 active members worldwide.
Some objectives of SEAPEX are to:
Advance the science of geology and related earth sciences for
petroleum and gas exploration, development and production
specifically in South East Asia
Act as a body to improve awareness of oil and gas industry issues in
the community
Foster a spirit of scientific research
Disseminate information related to petroleum geoscience

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SEAPEX Oil Barrel Prize (SGD 2,000)

Download the form from IVLE, fill your particulars and

hand in to me by 25th August
Membership allows you to participate in the Oil Barrel
Prize

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How do you learn ?

Before the lecture
Prepare well by going through the uploaded slides in IVLE
Look-up highlighted items
Identify slides or lines which you would like to know more of

During the Lecture

Listen well and take short notes (bring laptops if comfortable)
Look for an opportunity to ask questions (if any)

After the Lecture

Revisit the slides
Expand your notes using referred books, internet (Wikipedia)
Email me for clarification/consultation on doubts

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What books to read ?

Wicander, R and Monroe, E. 2009. Essentials of Physical Geology. 5th
edition.
Hyne, N.J. 2002. Nontechnical guide to petroleum geology, exploration,
drilling and production. 2nd edition.
Selley, R. 1998. Elements of petroleum geology. 2nd edition.
Fraser, J. et al. 1997. Petroleum Geology of Southeast Asia.
More books (including these) are listed in IVLE
Best references are provided in Wikipedia for each subject matter

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Where it all started?

1854
Pennsylvania, USA

3000 BC
Oil seeps in Bagdad

1860
Romania
1878
Canada,
Venezuela,
Mexico
1908 - Iran
1923 Iraq
1932 - Bahrain
1938 -Kuwait

Earliest recorded price 16 US cents a gallon!

USA peaked production in 1960s, thereafter Middle East took over.
In 1961 the Organization of the Petroleum Exporting Countries
(OPEC) was established

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Where it is happening today?

Off-shore
As on land & shallow-water oil reserves dwindle, deepwater oilfields at the edge of the continental shelf are
being explored.
Shell has developed Mars, a 500-million-barrel oilfield,
in 900 m of water, off-shore Gulf of Mexico.
We now have the technology to drill wells in 3,000 m
depth of water

Arctic
Since OPEC's price rises in 1973 new technologies
were introduced to pump oil from offshore and from
the Arctic (the Alaska pipeline)

Unconventional Oil
E.g. Shale gas, oil sands, Coal bed Methane

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Whats a Barrel of Oil ?

As the oil industry grew during the 19th Century explorers needed to
find a way to transport it around the country. Inspiration came from the
whiskey industry which transported the golden liquid in wooden
barrels of a standard size of 42 US gallons.

1 Barrel =
42 US gallons
4.972 Imperial gallons
158.987 Litres

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Whats in a Barrel of Oil ?

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What
products
from Oil ?

The modern
World cant
function without
oil and gas

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What products from Oil ?

The modern World cant function without oil and gas

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What does oil cost?

https://en.wikipedia.org/wiki/Price_of_oil#/media/File:Brent_Spot_monthly.svg

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Why cost of Oil varies?

In 2006, average production cost to bring a barrel of oil to
the surface ranged from $4 per barrel (excluding taxes) in
Africa, $6.83 in USA, $8.30 in Canada.
Exploration & development costs vary by region.
2003-2006
$5.26/barrel in the Middle East
$63.71/barrel for deep U.S. offshore.

2008 : Middle East said to be producing at $US13.50 a

barrel. Peak selling at $US147!!!
2014: Everyone is happy at ~$80 a barrel, very happy at
$100!
TODAY Price is $49 a barrel

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How long shall Oil Last?

Estimated reserves: 800 billions of barrels,
World consumption: 76 millions barrels per day
So only 27 years of oil is left at present rate of consumption
SHOULD WE PANIC!!!

US Geological Survey estimates

3 trillion Barrels still to be found
three times the oil reserves known today

The real issue is when will production be insufficient to

cover demand?

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Have we Peaked already?

Have we peaked??

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Why demand for oil varies?

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Will production always keep up with demand?

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How does Oil look like?

Crude oil varies greatly in appearance
depending on its composition.
It is usually black or dark brown (although it may be
yellowish or greenish).
Crude oil may also be found in semi-solid form
mixed with sand, as in the Athabasca Oil (Canada)
where it may be referred to as crude bitumen

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Where does Oil & Gas come from?

Source Rock

Reservoir Rock

Seal Rock

Petroleum Trap

http://www.oringcng.com/where-does-cng-come-from/

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How Old is Oil & Gas ?

South East Oil
North Sea Oil

North Sea Gas

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What is oil composed of ?

courseware.e-education.psu.edu

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Where to look for Oil?

https://commons.wikimedia.org/wiki/File:Oil_traps.svg

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How do we explore it?

Anticlinal trap
Fault trap

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How do we discover it?

Singapore is world
leader in jack-up rigs

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How do we produce oil?

www.gazprom.com

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How do we transport it?

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What is
Downstream?

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Where on earth does oil occur?

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Where in South East Asia?

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How Geoscience helps?

Geology is Important
Understanding of earths history and sedimentary
processes are key

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How Geoscience helps?

Identify paleoenvironment

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Summary so far
History of Oil
Origin of Oil
Composition of Oil
How to find Oil

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Petroleum
Petroleum is a naturally occurring, flammable liquid found
in rock formations in the Earth consisting of a complex
mixture of hydrocarbons of various molecular weights,
plus other organic compounds.

The word Petroleum is coined from

two latin words
----Petra meaning rock
----Oleum meaning oil

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Petroleum

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Hydrocarbons
Is made from paraffin-like hydrocarbon molecules

Methane CH4 70 - 98% = pipeline house gas

Ethane C2H6 1 10%
Propane C3H8 trace to 5% = LPG
Butane C4H10 trace to 2%

H2 S
rotten eggs = sour gas
Very corrosive

Inert gases
CO2, N, He
He from radioactive decay of K40 in granite

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Hydrocarbon Gas & Oil

Non-associated natural gas (nearly pure methane) is not in
contact with oil in the sub-surface.
Associated natural gas occurs in contact with crude oil and gas
in the subsurface both in the free gas cap and solution gas
Condensate
In some gas reservoirs at high temp, shorter-chain liquid hydrocarbons (5 7 C atoms) occur as a gas.
When this gas is produced at the surface, the T decreases and the liquid
hydrocarbons condense out of the gas.
The liquid is nearly pure gasoline: gets mixed with high-octane refinery
gasoline.

Wet gas is natural gas that contains condensate. Dry gas does
not.

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Gas-Oil Ratio (GOR)

Gas is dissolved in crude oil because
of high underground pressure. The
gas/oil ratio (GOR) is the amount of
gas dissolved in the oil in the
reservoir under surface conditions.
When crude oil is lifted, the Pressure
is relieved and the solution gas
bubbles out giving the producing
gas-oil ratio of a well (GOR). As the
gas bubbles out, the oil volume
shrinks

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A Gas flare

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Composition of Petroleum
Mostly Hydrocarbons like
alkanes,
cycloalkanes
aromatic hydrocarbons

Others
oxygen and sulfur
Trace metals as iron,
nickel, copper & vanadium

Composition range

Composition by weight
Hydrocarbon

Average

Range

Paraffins (Alkanes)

30%

15 to 60%

Napthenes
(Cycloalkanes)

49%

30 to 60%

Aromatics

15%

3 to 30%

Asphaltics

6%

remainder

Element

Oil

Gas

84 - 87

65 - 80

11 - 14

1 - 25

0.06 - 2

0 0.2

0.1 - 2

1-15

0.1 - 2

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Chemical analysis of Crude

Molecules from crude oil samples are typically extracted in a
solvent, then separated in a gas chromatograph, and
determined with a suitable detector, such as a flame ionization
detector or a mass spectrometer.

Gas-liquid
chromatography

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Hydrocarbons
Alkanes (Paraffins)
Alkanes are organic compounds that consist entirely of singlebonded carbon and hydrogen atoms and lack any other functional
groups.
Alkanes have the general formula (CnH2n+2)
Examples
Methane
Ethane
Propane

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Hydrocarbons
Cycloalkanes (Napthenes)
Are hydrocarbon compounds that have one or more rings of
carbon atoms in the chemical structure of their molecules
General formula is CnH2(n+1-g)
Example
Cyclobutane

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Hydrocarbons
Aromatics Hydrocarbons
The term 'aromatic' was coined as such
simply because many of the
compounds have a sweet or pleasant
odor.
Its simplest form is Benzene that has a
configuration of six carbon atoms.
Aromatic hydrocarbons can be
monocyclic (MAH) or polycyclic
(PAH).

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Quality of Crude
API Gravity
Crude oils are compared and described by their density.
API is the most common used density scale.
API stands for the American Petroleum Institute, Washington.

API = [(141.5 / specific gravity at 60oF) 131.5]

Water has an API of 10.

The API of crude oils varies from 5 to 55.

Average crudes are 25 to 35.
Light oils are 35 45, very fluid, transparent, gasoline-rich, the most
valuable.
Heavy oils are below 25, very viscous, dark coloured, much asphalt, less
valuable

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Kerogen & Petroleum

Kerogen is a mixture of
organic chemical
compounds that make up a
portion of the organic matter
in sedimentary rocks
It is insoluble in normal
organic solvents because of
the high molecular weight
Organic content that is
soluble is called Bitumen

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Kerogen & Petroleum

Kerogen types determine the type of
hydrocarbon that can mature from it.
Van Krevelins diagram
differentiates between the kerogen
types by plotting H/C versus O/C
ratio.
Types of Kerogen
Type 1 Algal matter of lacustrine origin,
oil prone
Type II Marine origin, oil and gas prone
Type III Plant origin, coal and gas
prone
Type IV - Charcoal

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Kerogen & Petroleum

Cooking of Kerogen
yields Petroleum
Also known as Thermal
maturity of Kerogen
Arrhenius Equation:
K = Ae-Ea/RT
where K = rate,
A = constant,
Ea = activation constant
R = gas constant,
T = temperature

The petroleum system needs an

oil and gas kitchen

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Crude Oil
Crude Oil is a liquid fossil fuel that is very viscous and black
in appearance. It is a mixture of lots of different hydrocarbons,
some of these hydrocarbon chains are very long, others are
very short. Depending on the length of the hydrocarbon we
have different uses for each one.
The longer the hydrocarbon:

The higher the boiling point

The higher the viscosity
The darker the color
The lower the flammability

Due to the different boiling points, crude oil can be separated

into fractions (parts) by heating it in a process called fractional
distillation.

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Refining of Petroleum
Fractional Distillation

Singapore is the 3rd biggest petrochemical producer in the world

After Texas/Lou and Amsterdam/Rotterdam

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Refining of Petroleum
Catalytic cracking, or "cat cracking," is the basic gasolinemaking process.
Using intense heat (about 500 degrees centigrade), low pressure and a
powdered catalyst, the cat cracker can convert most heavy fractions into
smaller gasoline molecules.

Hydrocracking applies the same principles using catalysts at

slightly lower temperatures, much greater pressure and hydrogen
to obtain chemical reactions.
Cokers, use heat and moderate pressure to turn residuum into
lighter products and a hard, coal-like substance that is used as an
industrial fuel.
Alkylation, essentially is cracking in reverse: makes gasoline
components by combining some of the gaseous byproducts of
cracking.

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Refining of Petroleum

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Conclusion
Petroleum and its products are important to the future of the world.
Petroleum oil and gas forms from the thermal maturation of buried
Kerogen. Formed in the oil (70200 oC) and gas (>200-400 oC)
windows
Natural gas is mostly methane, associated with crude oil
Petroleum is a mixture of Hydrocarbons which include alkanes,
cycloalkanes, aromatics
Fractional distillation and cracking produce usable products from
Petroleum crude.
Kerogen types characterize the source organic content and determine
the hydrocarbon product which can be cooked out of them

A petroleum geoscientist needs to have a good understanding

of Geology, Geography, Chemistry, Physics, Math's, Biology
and Engineering

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Next lecture
Maturation, Migration, Traps, and Seals

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Any Questions??