 Naturally occurring liquid found in rock formation

 Consist of a complex mixture of hydrocarbons of various

molecular weights and other organic compound

 Formed from fossilized remains of dead Plants and Animals by

exposure to heat and pressure in earth’s crust over millions of years
and preserved there gradually transforming into Oil reservoirs

 Vital to the maintenance of Industrialized Civilization

 Extracted in the form of CRUDE OIL

 Oil forms from dead organisms in
ancient seas
 PETROLEUM INDUSTRY

DOWNSTREA
UPSTREAM
M

Refining
Exploration
Extraction Transportatio
n
 Includes the global process of Exploration, Extraction, Refining and
Transportation.

 Industry is usually divided into three major components

• Upstream
• Midstream (Included in the downstream category)
• Downstream

 Has been in existence over a period of several centuries. Many

historical references which shows wide use of petroleum in China and
Japan in ancient times

 Over the period of time, the industry has grown drastically. Is the
one industry which is closely watched by everyone in world. Its
importance can be gauged from the fact that many wars in recent
times are fought over petroleum

 Over 90% of world’s transportation system energy requirement is

fulfilled by petroleum industry
 The upstream oil sector commonly used to refer to the Searching for
and the Recovery of crude oil or natural gas

 Also known as the exploration and production(E&P) sector

 Sector includes searching for potential Underground or Underwater oil

and gas fields

 Drilling of exploratory wells that recover and bring crude oil/natural

gas to the surface
 Oil/Natural gas exploration is the search by petroleum geologists for
deposits underneath the earth’s surface

 Geologists interprets surface feature for further in-depth analysis

 Visible surface features such as oil seeps, natural gas seeps,

pockmarks(underwater craters caused by escaping gas) provides basic
evidence of hydrocarbon generation

 Most exploration depends upon highly sophisticated technology

Modern Techniques involve GRAVITY METERS and MAGNETOMETERS to

measure tiny changes in earth’s gravitational/magnetic field caused by
flowing oil
Most common modern technology is the SEISMOLOGY in which shock
waves are created that pass through hidden rock layers and reflected
waves are interoperated.
Shock waves are created by the following

 Compressed-Air gun:- shoots pulses of air under water (for

underwater exploration)

 Thumper Truck:- slams heavy plates into ground (for exploration

overland)

 Explosives:- drilled into ground(for exploration overland) or thrown

overboard (for overwater exploration) and detonated
 Searching for oil over water
using seismology
OIL RESERVES
 Measure of probability of Oil existing and being Producible under
current economic situation using available technology
Three types of oil reserves

 Proven Reserves:- defined as oil/gas “Reasonably Certain” and

refers to as P90 i.e. 90% certainty of being produced

Probable Reserves:- defined as oil/gas “Reasonably Probable”

and refer to as P50 i.e. 50% certainty of being produced

 Possible Reserves:- “Having a chance of being developed” and

refer to as P10 i.e. 10% certainty of being produced
 The process by which useable petroleum is extracted and removed
from earth’s surface

 The oil extraction/recovery is of three types

 Primary recovery
 Secondary recovery
 Tertiary recovery

PRIMARY RECOVERY
 Underground pressure is sufficient to force the oil to surface
 In this stage, recovery comes from natural mechanisms which
includes:
 Natural oil displacing oil upward into the well
 Expansion of natural gas at top of reservoir
 Expansion of gas initially dissolved in crude oil
SECONDARY RECOVERY
 Over the time, well pressure will diminish
 External energy is supplied to increase well pressure
 Pumps (beam or electrical submersible) are used
 Pressure is also increased by Air injection, Water injection and Gas
Re-injection

TERTIARY RECOVERY
 Reduces oil viscosity to increase production by injecting Steam
 Mostly done in a Co-generation plant
 Extra 5% - 15% is recovered
OIL WELL
 Created by drilling/boring hole in earth’s crust
 Drilling is done by setting up Oil rig
 Consists of pipe cemented into the drilled hole
 Earliest oil well dug in china was about 800 feet deep
OIL RIG
 Two types of oil rigs
 Drilling Rig ( for on-land oil drilling)
 Oil Platform ( for off-shore oil drilling)

Oil
Platform

Drilling rig
CHRISTMAS TREE
 Assembly of valves, spool and fittings
 Named for crude resemblance to “decorated tree”
 Primary function is to control flow In and Out of the well
 Additional functions include Pressure relief, chemical injection, etc
 The control System attached to the tree helps controlling via satellite
 The crude oil is processed and refined to useful Petroleum products
(gasoline, kerosene, diesel, etc)
 Refineries are typically large sprawling industry with complex piping
network
 Oldest and common method of separating crude is by FRACTIONAL
DISTILLATION
 Various Components(fractions) are separated at different boiling
temperatures.
 Major products of refineries are:-

 Liquefied Petroleum Gas(LPG)

 Gasoline (petrol)
 Naphtha
 Kerosene (related jet fuels)
 Diesel fuel
 Lubricating oils
 Fuel oils
 Paraffin wax
 Asphalt and Tar
 Petroleum coke
FRACTIONAL DISTILLATION
 Pre-heated raw/unprocessed crude oil is fed into the distillation
column

 The long column is filled with trays or plates operating at different

temperatures

The vapor enters the bottom of column and rises

 As the vapors passes through trays, it cools

 When a substance in vapor reaches the height where its boiling

point is equal to the operating temperature at that position, it
Condensate

 Tray collects various liquid fractions.

 They collected liquid may pass through condenser for further

cooling to be stored

 Or it proceed to other areas for further chemical processing

 TRANSPORTAT
ION

OIL TANKER
PIPELINE
VEHICULAR

DISTRIBUTIO
GATHERING TRANSPORT
N
PIPELINE PIPELINE
PIPELINE
PIPELINE
 The idea was brought by Dmitri Mendeleev in 1863

 He suggested using a pipe for transporting Petroleum

 Pipelines are usually made from Steel with inner diameter typically
from 10 to 120 cm( 4 to 48 inches)

 Most pipelines are buried with a typical depth of 1-2 meters (3 to 6

feet)

 Pump station keeps the oil in flow at a speed about 1 to 6 m/s

 Multi- product pipeline are used for transporting two or more

products in sequence

The only feasible way of transporting

significant volume by land over large
distances.
TYPES OF PIPELINE

 GATHERING PIPELINES:- Group of smaller interconnected

pipelines forming complex network with the purpose of bring crude
oil/natural gas from several wells to treatment plants/processing
facility
In this group pipelines are usually short(couple of hundred meters)
with small diameter. Also sub-sea pipeline for collecting product from
deep sea platform are part of this system

 TRANSPORTATION PIPELINE:- Mainly long pipes with large

diameter, moving products(oil gas, refined products) b/w cities,
countries and even continents. Transportation network includes
several compressor stations for gas/ pumping stations for oil and
multi-product pipeline

 DISTRIBUTION PIPELINE:- Composed of several interconnected

pipeline with small diameter, used to convey products to final
consumer. This includes Feeder lines for distribution of gas at
home/commercial purpose
Pipelines at terminals for distributing products to tank and storage
COMPONENTS OF PIPELINE

 Composed of several equipments that operates together to move

products via different locations. The main elements are:-
 Initial Injection Station:- Supply or Inlet station, is the
beginning of the system

 Compressor/Pump Stations:- Pumps for liquid pipelines and

Compressors for gas pipelines, are located along the line to move the
product through the pipeline. The location of these stations is defined
by the topography of the terrain, the type of product being
transported, or operational conditions of the network.

 Partial Delivery Station:- Known also as Intermediate

Stations, these facilities allow the pipeline operator to deliver part of
the product being transported.

 Block Valve Station:- These are the first line of protection for
pipelines. With these valves the operator can isolate any segment of
the line for maintenance work or isolate a rupture or leak. Block valve
stations are usually located every 20 to 30 miles (48 km), depending
on the type of pipeline

 Regulator Station:- This is a special type of valve station, where

the operator can release some of the pressure from the line.
Regulators are usually located at the downhill side of a peak.
OPERATION

 Pipelines are controlled and operated remotely, from what is usually

known as The Main Control Room

 Field measurement is consolidated in one central database

 RTU’s are installed at every station along pipeline, which is

controlled by Main Control Room

 The advance technology provides functionality such as leak

detection, leak location, batch tracking (liquid lines), pig tracking,
composition tracking, etc.
VEHICULAR TRANSPORTATION
 An oil tanker, also known as a petroleum tanker, is a ship designed
for the bulk transport of oil.

 There are two basic types: crude tanker and the product tanker

 Crude tankers move large quantities of unrefined crude oil from its
point of extraction to refineries

 Product tankers, generally much smaller, are designed to move

petrochemicals from refineries to points near consuming markets.

 Are classified according to their weight. Ranging from few thousand

metric tons of dead weight (DWT) to mammoth supertanker of
550,000 DWT

Tankers move approximately 2 billion metric tons of oil every year

 Second only to pipelines in terms of efficiency