Understanding oil and gas

Business
Introduction

Introduction

Oil Industry- Exciting Industry.

History of Oil- Seepages- 3000 B.C.
Amazing penetration of oil and gas in our lives.
(Toothbrush,
Suit,
Fuel for car,
Car interior,
Cozy furniture,
matters)
All are Petrochemicals (Chemicals from petroleum).

Petrochemicals Chemicals derived

from Petroleum

Introduction. Cont..
Petroleum= Petra (Rock) + Oleum(Oil) , Latin word.
Naturally occurring hydrocarbons (carbon and
hydrogen atoms).
Hydrocarbons trapped, in porous rocks in form of
oil and gas.
Petroleum= Mixture of hydrocarbons recovered from
drill pipe.

Hydrocarbons

Scope of Hydrocarbon Industry

in Modern times
Numerous verticals covered by Hydrocarbon industry.
Ex (Transport, plastic, synthetic rubber, synthetic
coke).
Thousand of products and by products derived from
Hydrocarbon sector and still counting.
Non- conventional sources (Shale oil, Heavy crude,
Tar sand).

How Oil and Gas Industry

Organized
Process Starts- Exploration of oil and gasProduction of finished products (Petrol, diesel,
natural gas) from refinery.
First segment- Exploration and concludes with
preliminary processing of Crude oil and gas.
Final product of this segment sent to Refinery
(Upstream Hydrocarbon sector).
Downstream- (Refining and distribution).
Hydrocarbon Industry broadly classified
(Upstream and Downstream).

Classification Of Petroleum
Industry

Classification Of Petroleum
Industry
Upstream (Exploration and Production) ONGC, Essar
oil, Cairn India, Reliance Industries, GSPC

Downstream (Refining and Distribution) Reliance,

Essar, Bharat Petroleum, etc.

Marine (Transportation) TransCanada, Spectra

Energy,
Pipelines (GAIL), Leighton India.
Service and supply (Schlumber), Petrofac
Engineering India Pvt.ltd.

Equipment Manufacturers( Larsen & Toubro)

Origin of Hydrocarbon
Inorganic Theory( Abiotic Theory)

In-Organic theory :

Early in 16th century.

Resulted from very deep
carbon deposits- longer
than life on this planet.
Abiotic oil formation
Theory.
Alexander Von
Humboldt( 1804)- product
of a distillation from great
depth and issues from the
primitive rocks.

Organic Theory ( Biotic Theory)

Organic Theory:
Hydrocarbons: from the
remains of bodies of
prehistoric land based animals,
marine organisms( plankton)
and vegetation got washed
away and buried below the
earth during upheavals on the
earth.
Buried organic matter
decomposed (Carbon and
hydrogen reacted under heat
and pressure to form various
compounds- Hydrocarbons).

Petroleum Cont
Hydrocarbons
Petroleum- Essentially composed of Hydrocarbons
with some other impurities.
Petroleum, oil and gas, hydrocarbon is used
synonymously in the Industry.
Hydrocarbons in petroleum could be in gaseous,
liquid, solid.
Gaseous form as Natural gas-Associated with oil in
oil field or free of oil in ( Gas field).
Liquid form as Crude oil (Dark & viscous), or
Condensate( motor gasoline)
Solid and semi-solid form (Asphalt and tar).

Hydrocarbon Formation

Reservoir, Well and Well

fluid
Reservoir, Well and Well
Fluid:

Hydrocarbon FormationBurial and decomposition

of Organic Material.
Movement and convulsionGeological formations.
Source rock= Porous rock
containing Hydrocarbons.
Cap Rock= Hard
sedimentary rock covering
Source rock.

Reservoir

Huge Quantity of Recoverable

Hydrocarbons
Oil field, Gas field or condensate field.
Oil and gas Trapped in Pores.

Well Fluid
Fluid form Well is well fluid.
Mixture of Crude oil, Natural gas, saline water,
small amount of sand and sludge
Formation water or Produced water.
Artificial Recovery Method.

Reservoir/Well fluid

Point To
Remember
If the crude oil had
been just made of
hydrocarbons,
processing to get
the final products
would have been
easy and at low
cost.
But a number of
undesirable
components come
out with the well
fluid, which
increases the
processing blocks
and processing
cost.

Process Flow of Typical Upstream

oil and gas Production Process.

Process Flow of Typical Upstream

oil and gas Production Process.
Various Stages-Extraction, Separation of gas,
Water & oil, Metering, storage and offloading.
Main Process: Well head-Gathering system.
Separation- Gas oil separation plant (GOSP)
Auxiliary Process- Essential for Functioning of
Main Process.
Utility System:- Energy, water, air and steam.
Injection System:- Enhanced oil recovery.
Drilling- Drilling on oil rigs, Mud and cementation
included.

Hydrocarbon Industry & Global

Environment

Hydrocarbon Industry & Global

Environment
Benefits and Adverse effects of the Industry.
Challenges the existence of life.

Increasing 1 degree Fahrenheit from 1990

3 Times speed of warming-1970
Global warming- Increase in earth avg. Temp.
Green House gases-Co2, CH4, N2o.
Non-Conventional energy resource.

Future of Hydrocarbon
Industry..

Hydrocarbons and petroleum- Exhaust in future.

Billions of years to mature.
Reservoir depleted= Price Increase.
Extensive use resulted= Climate change.
Challenge to discover new suitable energy
program.
World demand=60% , Transportation=96%
Oil shale and Tar sands.