Exploration of Oil & Gas

Cantika Aidil Fitri 243210387 Putri Cendana 243210008

Ezi Fitriyani 243210842 Sandra Oliviana 243210023
Luthfia Syarafina 243210797 Syarifah Nursyahidah 243210117
Misli Harahap 243210638 Widyadhana Meilanda243210037
Najwa Inayah Tri Anisa 243210733
 OIL & GAS INDUSTRY – INTRODUCTION
The oil and Gas industry is one of the largest and most important global industry,
there are various activities that must take place to transform inputs of raw materials,
knowledge, labor and capital into end products purchased by customers. A value
chain is a device that helps identify the independent, economically viable segments
of an industry. Value refers to what customers are willing to pay for, and so the value
chain helps to identify the specific activities that create value throughout the chain
the Oil and Gas industry.
In this project the segment to be discussed is the Upstream segment of the Oil and
Gas Industry
 PURPOSE STATEMENT

Tend to explain What Oil and Gas

Exploration and Production involve and, how
the stages run. An explanation of the
overview of the stages and the evolution of
procedures and technology involved have
evolved, are detailed in this work.
 Exploration
The only way to prove what lies in buried
rocks is to drill a well. Even with current
geology and geophysical procedures, drilling
stays hazardous. An exploratory or "wildcat"
well in a region that has not been drilled
before faces high chances against success:
approximately one of seven to 10 exploratory
wells finds commercial accumulations of oil
or gas
 Exploration

A financial analysis is a determining factor in the

classification of a well into:
• Oil Well
• Natural Gas Well
• Dry Hole
 Exploration methods
Visible surface features such as oil seeps, natural gas
seeps, pockmarks (underwater craters caused by
escaping gas) provide basic evidence of hydrocarbon
generation (be it shallow or deep in the Earth).
However, most exploration depends on highly
sophisticated technology to detect and determine the
extent of these deposits using exploration geophysics.
Areas thought to contain hydrocarbons are initially
subjected to a gravity survey, magnetic survey, passive
seismic or regional seismic reflection surveys to detect
large-scale features of the sub-surface geology
 Exploration methods
Features of interest (known as leads) are subjected to
more detailed seismic surveys which work on the
principle of the time it takes for reflected sound waves
to travel through matter (rock) of varying densities and
using the process of depth conversion to create a
profile of the substructure. When a prospect has been
identified and evaluated and passes the oil company's
selection criteria, an exploration well is drilled in an
attempt to conclusively determine the presence or
absence of oil or gas.
 Exploration risk
Hydrocarbon exploration is a high risk investment and risk assessment is
paramount for successful exploration portfolio management. Exploration risk is a
difficult concept and is usually defined by assigning confidence to the presence of
five imperative geological factors. This confidence is based on data and/or models
and is usually mapped on Common Risk segment Maps (CRS Maps). High
confidence in the presence of imperative geological factors is usually Colored
green and low confidence colored red. Therefore these maps are also called Traffic
Light Maps, while the full procedure is often referred to as Play Fairway Analysis.
The aim of such procedures is to force the geologist to objectively assess all
different geological factors. Furthermore it results in simple maps that can be
understood by non-geologists and managers to base exploration decisions on.
 Elements of a petroleum prospect

Mud log in process, a common way to study the rock types when drilling oil wells

A prospect is a potential trap which geologists believe may contain

hydrocarbons. A significant amount of geological, structural and seismic
investigation must first be completed to redefine the potential
hydrocarbon drill location from a lead to a prospect. Five geological
factors have to be present for a prospect to work and if any of them fail,
neither oil nor gas will be present.
 Terms used in petroleum evaluation

Bright spot - On a seismic section, coda that have high amplitudes due to a
formation containing hydrocarbons.

Chance of success - An estimate of the chance of all the elements (see above)
within a prospect working, described as a probability.
Dry hole - A boring that does not contain commercially viable hydrocarbons.

Flat spot - Possibly an oil-water, gas-water or gas-oil contact on a seismic section;

flat due to gravity.

Hydrocarbon in place - amount of hydrocarbon likely to be contained in the

prospect. This is calculated using the volumetric equation - GRV x N/G x Porosity x
Sh / FVF
 Terms used in petroleum evaluation

GRV - Gross rock volume - amount of rock in the trap above the
hydrocarbon water contact
N/G - net/gross ratio - proportion of the GRV formed by the reservoir
rock
(range is 0 to 1)
FVF - formation volume factor - oil shrinks and gas expands when
brought to the surface. The FVF converts volumes at reservoir conditions
(high pressure and high temperature) to storage and sale conditions
Prospect - a lead which has been more fully evaluated.
Recoverable hydrocarbons - amount of hydrocarbon likely to be
recovered during production. This is typically 10-50% in an oil field and
50-80% in a gas field.
 Drilling

In the early years of petroleum industry, wells

were not drilled but were punched with cable
tools. On a cable tool rig, a heavy bit with a
chiseled edge was suspended on a line of rope or
wire cable. The hole was made through the
constant raising, lowering and pounding of the bit
into the earth. By the late 1920s, most operations
used rotary drilling equipment, which was more
efficient, drilling deeper and faster.
 Drilling

A deep-rated drilling rig, which might be used to drill holes 5,000 m deep, is
composed of much heavier, larger and stronger equipment than one used to drill
shallow wells.

For offshore drilling, rigs generally are permanently mounted on barges or platforms
so that they can be towed from well site to well site. Some offshore drilling rigs are
mounted on specially designed ships which move under their own power.
 Down hole Technologies
During recent decades the technologies used to find and produce oil have gone
through a revolution. In particular, horizontal drilling and the ability to drill several
horizontal laterals from a single wellbore have transformed the drilling sector.
Horizontal drilling is possible because of improvements in bit design, better down
hole motors and bigger rigs.
Geo-steering is one of a number of revolutionary down hole technologies developed
since the 1990s. In recent years, it has been given a lift by high-impact, measurement
while drilling tools and techniques. More importantly, the industry can now isolate
many completion zones (areas from which oil and gas are produced) in horizontal
wellbores. This makes reservoir fracturing (and therefore production) possible from
horizontal wells that reach out for several kilometers underground
 Completion
Drilling operators constantly monitor the progress of a well so they can quickly make
decisions about whether to “complete” the well so it can be used for production or
“abandon” it as a dry hole. Throughout the drilling operation, rock cuttings are
examined for traces of hydrocarbons, and other evaluations and analyses are made. If
the well is judged a dry hole, it will be plugged with cement and abandoned.
However, if the tests show promise, the well will be completed.

The first step in completion is the installation of production casing, a tubular steel
pipe that is cemented in place down the length of the wellbore. After this process, the
drilling rig is usually removed from the well and a truck-mounted service rig is
moved into place. The production casing is perforated to allow entry of fluids and
gases into the wellbore. The perforations also provide access to the producing
formation for other completion activities that may be undertaken.
 PRODUCTION
Production is the long-term process of drilling and extracting oil and gas.
Most countries grant oil and gas development rights to private companies
through negotiation or bidding. As crude oil and natural gas are non-
renewable resources, optimizing recovery is essential. Typically, only
about 25 percent of the oil in a reservoir can be recovered through natural
or primary recovery methods. Enhanced-recovery techniques, such as
water injection—where water is injected into the oil-bearing formation to
push oil toward the wellbore—can increase recovery rates to over 80
percent. Natural gas usually flows to the surface under its own pressure,
requiring only a series of chokes and valves called a "Christmas tree" to
control flow at the wellhead. Crude oil, often containing some natural
gas, may also be produced through natural pressure, but in Canada, most
crude oil wells require artificial lifting methods using equipment like
pump jacks, horse head pumps, or walking beam pumps.
 CONCLUSION
Offshore and onshore production refers to the locations where oil and gas extraction
occurs, with development following exploration and involving the installation of
facilities that serve as platforms for production. Once crude oil or natural gas is
produced, it must be transported—crude oil from the wellhead to a refinery, and
natural gas to markets via pipelines or ships—as crude oil holds little to no value
until refined into products like gasoline and diesel. The marketing of crude oil,
natural gas, their products, and by-products is a complex process governed by
numerous federal and provincial regulations. While provinces have jurisdiction over
oil and gas produced within their borders, the federal government holds ultimate
authority over pricing, transmission, and domestic and export sales. Revenue from
production is shared between governments and producing companies through federal
and provincial taxes as well as provincial royalties. Disputes have often arisen
between federal and provincial governments over the ownership, revenue sharing,
and regulatory control of oil and gas resources, particularly in offshore areas, with the
federal government also regulating interprovincial transport and export allocations
 REFERENCES
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World Petroleum Council http://www.world-petroleum.org/education/ip1/ip1.htm
BP Energy Business Booklet ‘Oil Formation and Exploration 'About BP
http://www.bp.com OR
http://www.bp.com/extendedsectiongenericarticle.do?categoryId=5&contentId=704415
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Frode,O. (1995). A comprehensive analysis of the effects of offshore Oil and Gas
exploration and production on the benthic communities of the Norwegian continental
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277-306.
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