Origin of oil - 1

Hydrocarbons are present in sub surface only, in some cases occasionally it is found in the surface as springs
through seepages.

Inorganic theory Inorganic origin of petroleum not possible. Why?

• Homologous series present in petroleum
First theory was given by Mendeleev & products are found only in organic matters
Berthelot, stated that carbides present in the • Plant derived nitrogen based compound
earth crust produce hydrocarbons on porphyrins is present widely in petroleum
interaction with water. • Petroleum formation is a result of low
CaC2+2H2O C2H2 + Ca(OH)2 temperature activity only
• Petroleum products are always associated with
Al4C3+12H2O 3CH4 + 4Al(OH)3 sedimentary rocks rather than igneous rock
However deposit of such magnitudes couldn’t • Small quantities of petroleum in recent
be justified. sediments suggest, that the formation of
petroleum is normal, continuous and does not
require any sever physico-chemical conditions.
Meteoritic theory • Most organisms, like diatoms are found in
V D Sokolov proposed this based on the fact petroleum
that many planets have hydrocarbon clouds
and oceans. During earth formation cosmic
clouds contained hydrocarbon and under
favourable conditions there was precipitation
of hydrocarbons. The same was absorbed or
entrapped in earth’s crust.

1
Origin of Oil – 2 (Organic theory)

It is largely believed that like coal that forms by decay of large masses of plant materials in shallow swamps and
petroleum is formed by decay of both animal and tiny flowing material in stagnant water, where no oxygen exists.

• Petroleum is a result of the transformation of

organic (animal and vegetal) debris from marine
populations, under great pressure and in the
absence of oxygen.
• This waste, mixed with sediments and gradually
buried by new layers which are deposited,
undergoes molecular changes under the combined
effect of an increase in temperature and pressure.
• It thus becomes a liquid or a paste made up
essentially of hydrocarbons, molecules made of
hydrogen and carbon assembled in chains which
vary in their degree of complexity. As well
as hydrocarbons, variable proportions of sulphur,
nitrogen, oxygen and traces of various metals are
present.
• Over time, from the moment it is formed, oil begins
to migrate towards the surface of the earth. On its
way, it meets porous rocks, known as reservoir
rocks, where it accumulates and forms oil reservoirs

Source: www.black-tides.com
2
Composition of Petroleum
Liquid petroleum that is pumped out of an oil well is called “crude oil” or “crude.” Composed predominantly of
carbon, crude oil contains approximately 84-87 percent carbon and 11-13 percent hydrogen. Crude oil also contains
varying amounts of oxygen, sulphur, nitrogen, and helium.

Elemental composition of petroleum What is “sweet” crude oil?

Although there is considerable variation between Crude oils with low sulphur content are classified as
the ratios of organic molecules, the elemental “sweet.” Those with a higher sulphur content are
composition of petroleum is well-defined: classified as “sour.” Sulphur content is generally
• Carbon - 83 to 87% considered an undesirable characteristic with respect to
both processing and end-product quality. Therefore,
• Hydrogen - 10 to 14%
sweet crudes are typically more desirable and valuable
• Nitrogen - 0.1 to 2% than sour crudes.
• Oxygen - 0.05 to 1.5% Generally crude with sulphur <0.42% is classified as
sweet crude.
• Sulphur - 0.05 to 6.0%
• Metals - < 0.1% 70% of remaining reserves are sour
The most common metals are iron, nickel, copper
and vanadium.

The petroleum industry often names crude based on the oil's geographical source--for example “West Texas
Intermediate.” Crude oils are also classified based on physical characteristics and chemical composition using terms
such as “sweet” or “sour,” “light” or “heavy.” Crudes vary in their price, usefulness as manufacturing feedstock, and
impact on the environment.

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Classification of crude oil – Based on Toxicity
“Toxicity” refers to how harmful an oil might be to humans and other living organisms, as well as to land and water.
Generally, the lighter the oil the more toxic it is considered.
Class A Class B
• They are light and highly liquid, these clear and  Considered less toxic than Class A, these oils
volatile oils can spread quickly on impervious are generally non-sticky but feel waxy or oily.
surfaces and on water.  The warmer it gets, the more likely Class B
• Their odour is strong and they evaporate quickly, oils can be to soak into surfaces and they can
emitting volatiles. Usually flammable, these oils be hard to remove.
also penetrate porous surfaces such as dirt and
 When volatile components of Class B oils
sand and may remain in areas into which it has
seeped. evaporate, the result can be a Class C or D
• Humans, fish, and other biota face danger of residue.
toxicity to Class A oils.  Class B includes medium to heavy oils.

Class C – Class D –
 These heavy, tarry oils (which include residual  Non-fluid, thick oils are comparatively non-
fuel oils and medium to heavy crudes) are slow toxic and don’t seep into porous surfaces.
to penetrate into porous solids and are not highly  Mostly black or dark brown, Class D oils tend
toxic. to dissolve and cover surfaces when they get
 However, Class C oils are difficult to flush away hot, which makes clean up more harder.
with water and can sink in water, so they can  Heavy crude oils, such as the bitumen found
smother or drown wildlife. in tar sands, fall into this class.

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Classification – Hydrocarbon composition
Hydrocarbon

Paraffins (15%-60%) Naphthene (30%-60%) Aromatics (3%-30%) Asphaltenes

(Remainder)
 Mixture of alkanes (CnH2n+2) is called  Naphthenes are a class of  The first and smallest of the  Asphaltenes consist
paraffins. cyclic aliphatic aromatics is benzene. Other primarily of carbon,
 First three compounds of the series are hydrocarbons obtained simple aromatics are toluene, hydrogen, nitrogen,
gases, C4 to C16 are liquids, C16 to C30 are from petroleum. xylene, cumene etc. oxygen and sulphur, as
semi solids and beyond C30 they are solid Naphthenes have the  Aromatics are usually having well as trace amounts
blocks or even crystalline. general formula CnH2n. high boiling points, low pour of vanadium and nicke
 The aptitude to contribute the substituted  Naphthenes exhibit both points, high octane numbers, l. The C:H ratio is
products with halogens has magnified the the properties of high viscosity and low viscosity approximately 1:1.2,
petrochemical industry. saturated paraffins and index and these burn depending on the
 Viscosity of paraffins are less but viscosity unsaturated aromatics, characteristically with a red asphaltene source.
index is high in contrast to aromatics. the result of which, all the flame with much soot.  The molecular
 The pour point of paraffins is usually high, properties like specific  In petroleum fractions structure of
due to this paraffin rich crudes and gravity, viscosity, pour aromatics beyond 3-ring asphaltene is difficult
products bring difficulties in transportation point, thermal structure are probably non to determine the
and storage. characteristics lie in existent. molecules tend to
 Paraffins up to 3 carbon atoms have between the two  Bulk of the aromatics are with stick together in
inclination to form hydrates such as CH4 mentioned homologues. side chains together with solution.
7H2O, C2H6 7H2O and these hydrates offer Naphthenes exist in heavier
clogging and corrosion difficulties. portion of crudes.

http://www.petroleum.co.uk/
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Characterization of crude
Characterization of crude is important in refiners point of view to understand about the base of crude and can
adequately inform the refiners about the difficulties in processing.
UOP Characterization factor (K) Correlation index
The Watson characterization factor (K w) is one of US bureau of mines developed Correlation index for
the oldest characterization factors originally characterization of crude.
defined by Watson et al. of the Universal Oil The correlation index is useful in evaluating individual
Products (UOP) in mid 1930s. For this reason the fractions from crude oils. The CI scale is based upon
parameter is sometimes called UOP straight-chain paraffins having a CI value of 0 and
characterization factor and is defined as benzene having a CI value of 100 and is defined as
∛𝑅 Average Boiling point in oR follows:
𝐾=
𝜌 Specific gravity at 15.6 oC C.I = 87552/TB + 473.7 G – 456.8
TB is the mean average boiling point, oR

The CI values are not quantitative, but the lower the

K >= 12.5 Paraffinic base, K <= 10 Aromatic base
CI value, the greater the concentration of paraffin
Intermediates values are regarded as mixed base hydrocarbons in the fraction; and higher the CI value,
crudes. greater the concentration of Naphthenes and
K-value of a mixture is the sum of the aromatics.
components ‘K’ value multiplied by their weight
fractions in mixture.
K =K W +K W +K W
mix 1 1 2 2 3 3

W1, W2 & W3 are weight fractions of different

components. K1, K2 & K3 are respective
characterization factor.
http://nptel.ac.in/
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Classification of crude – API based
The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light
a petroleum liquid is compared to water.
• API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks.
• API gravity is thus an inverse measure of the relative density of a petroleum liquid and the density of
water, but it is used to compare the relative densities of petroleum liquids. For example, if one petroleum
liquid floats on another and is therefore less dense, it has a greater API gravity.
• Although mathematically, API gravity has no units (see the formula below), it is nevertheless referred to as
being in ‘degrees’.
• API gravity is gradated in degrees on a hydrometer instrument.
• The API scale was designed so that most values would fall between 10 and 70 API gravity degrees.

API=141.5/(Specific Gravity) – 131.5

API > 31.1 Light crude oil
22.3 < API < 31.1 Medium crude oil
10 < API < 22.3 Heavy crude oil
API < 10 Extra heavy crude oil

Why it is 141.5 in API formula rather than some whole number?

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Natural Gas
Natural gas is a mixture of various hydrocarbon gases like methane, ethane, propane, butane, pentane small
amount of heavier gases – hexane, heptane & octanes, along with some impurities like carbon-di- oxide, hydrogen
sulphide, nitrogen & water vapours.

Composition of Natural gas • The composition of Natural gas is not constant. Each
gas stream has its own composition.
The composition of natural gas can • In same reservoir, sometimes two wells producing
vary widely, but below is a chart gas may have different composition.
outlining the typical makeup of • Natural gas for measurement purpose in wellhead
natural gas before% Range
it is refined. normal SCF (Standard Cubic Feet) is used.
• In case of reserves were huge volumes needs to be
Methane 70 – 90% represented TCF (Trillion Cubic Feet) is used.
• How is gas sold to consumers?
Ethane
World over gas is sold in BTU (British
Propane 0 -20% Thermal Unit).
Butane One BTU =Amount of heat required to raise one pound of
water by one degree F at normal
Carbon di oxide 0-8%
atmospheric pressure
Oxygen 0-0.2% One cubic feet of pure methane produces 1027BTUs
Nitrogen 0-5%
40% of remaining reserves are sour
Hydrogen sulphide 0-5%
Rare gas Traces

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Phase Behaviour (PVT)
Phase Behaviour (PVT) analysis needs to be performed on representative fluid samples collected at the earliest
opportunity, normally during the drilling of the first exploration well and certainly before the reservoir is put into full
production. This highly specialized form of analysis delivers results for reservoir engineering purposes and also
supports the design and optimization of processes and facilities.

Based on the PVT studies Reservoir fluids can be

classified into five types
• Black oil
• Volatile oil
• Retrograde gas condensate
• Wet gas
• Dry gas

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Black Oil

Characters of Black oil

• GOR (Gas Oil Ratio) < 1750 SCF/STB
• API gravity < 45
• Colour of stock tank oil – Dark
• Phase change in reservoir – Bubble point
• C7+ mole% > 20%
• Oil FVF (Formation volume factor) < 2

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Volatile Oil

Characters of Volatile oil

• GOR (Gas Oil Ratio) – In range of 1750 - 3200
SCF/STB
• API gravity > 40
• Colour of stock tank oil – coloured
• Phase change in reservoir – Bubble point
• C7+ mole% - 20% to 12.5%
• Oil FVF (Formation volume factor) > 2

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Retrograde condensate

Characters of Retrograde Condensate

• GOR (Gas Oil Ratio) > 3200 SCF/STB
• API gravity > 40
• Colour of stock tank oil – lightly coloured
• Phase change in reservoir – Dew point
• C7+ mole% < 12.5%
• Recombined surface gas and liquid doesn’t
represents the total reservoir fluid, most of
retrograde condensate is left in the Reservoir

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Wet Gas

Characters of Wet Gas

• GOR (Gas Oil Ratio) > 15000 SCF/STB
• API gravity up to 70
• Colour of stock tank oil – water white
• Phase change in reservoir – None
• C7+ mole% < 4%
• Recombined surface gas and liquid represents the
total reservoir fluid.

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Dry Gas

Characters of Dry Gas

• GOR (Gas Oil Ratio) > 100000 SCF/STB
• Phase change in reservoir – None
• C7+ mole% < 0.8%
• Gas at surface is same as the gas in Sub Surface.

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Why Determine Reserves?
• To meet share holders disclosure requirements
• To calculate depletion/depreciation of capital
• To determine market value
• To evaluate exploration success
• To design facilities
• To obtain financing
• To negotiate property sales and acquisitions
Reserves Classifications and
Definitions
Reserves

Unprovedof hydrocarbon
Quantities Proved
believed to be
commercially
Possible Probable Developed Undeveloped
recoverable
from known accumulations
Producing Nonproducing
Reserves Classifications and
Definitions
Reserves

Unproved Proved

Quantities
Possible Probable of petroleum
Developed Undeveloped
that can be estimated with
reasonable certainty to
Producing Nonproducing
be commercially
recoverable
Reserves Classifications and
Definitions
Reserves
Resources expected
to be recovered from
Unproved Proved
existing wells

Possible Probable Developed Undeveloped

Producing Nonproducing
Reserves Classifications and
Definitions
Reserves

Unproved
Recovery from Proved
currently open
completion
Possible Probable Developed Undeveloped
intervals

Producing Nonproducing
Reserves Classifications and
Definitions
Reserves
Reserves shut-in or
Unproved behind pipe so they
Proved
are expected to be
commercially
Possible Probable Developed Undeveloped
recoverable

Producing Nonproducing
Reserves Classifications and
Resources expected to be
Definitions recovered from
Reserves
new wells
deepening existing wells
Unproved Proved efforts
expensive additional

Possible Probable Developed Undeveloped

Producing Nonproducing
Reserves Classifications and
Definitions
Reserves

Unproved Proved

Technical, contractual,
Possible Probable Developed Undeveloped
economic, or regulatory
uncertainties prevent
definition as proved
Producing Nonproducing
Reserves Classifications and
Definitions
Engineering data
Reserves
suggests reserves are
more likely than not
commercially
Unproved Proved
recoverable

Possible Probable Developed Undeveloped

Producing Nonproducing
Reserves Classifications and
Definitions
Reserves that may be
Reserves
commercially
recoverable depending
on Unproved
favorable geological Proved
and economic factors

Possible Probable Developed Undeveloped

Producing Nonproducing
Distribution of proved oil reserves since 1991

25
World Oil reserves
Proved reserves of crude petroleum is those quantities of petroleum that geological & engineering
information indicates with reasonable certainty that can be recovered in the future from known
reservoirs under existing economic & operating conditions

• Virtually all the world’s largest oil fields were

all discovered more than 50 years ago
• Since 1960s, annual oil discoveries tend to
decrease
• Since 1980, annual consumption has exceeded
annual new discoveries
• Till this day more than 47500 oil fields have
been found, but the 400 largest oil fields (1%)
contain more than 75% of all oil ever
discovered.
• When it comes to natural gas proved reserves
the Middle East and Europe & Eurasia region
account for 75% of whole world’s reserves.
• 70% of remaining oil reserves and 40% of gas
reserves are sour
• Almost 350tcf of gas contains over 10% H2S
and 700tcf contains over 10% CO2.

26
Distribution of proved gas reserves since 1991

27
How accurate reserve estimates
• Kern river field in California was discovered.
189 • Initially experts thought only 10% of oil could be recovered due to the viscous nature
9

• 278 million barrels of oil were recovered after a production for four decades.
• It was estimated to produce another 54 million barrels were left in the recoverable reserves of
194 the reservoir before abandonment.
4

• In next 44 years it produced 736 million barrels of oil (not 54 million barrels)
198 • It was envisaged that it has another 970 million barrels of recoverable oil remaining
8

• The cumulative production crossed 2 billion barrels and another 627 million barrels was
200 expected to be recovered
7

Kern river field still yields 80000 barrels/day and this type of recovery would not have been possible
without technological up gradation from time to time to maximise the recovery.

Therefore Oil & Gas reserves are not a static concept

E&P Cycle

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Exploration Geophysical method of Exploration

Potential field methods Non-potential Methods

• Gravity • Seismic
• Magnetic
• Electrical
• Magneto - telluric

• Geophysics provides tools for studying structure and composition of earth’s interior.
• Physical measurements are made at the surface
• Existence and properties of earth’s crust, mantle core are determined primarily by Geophysics
Gravity survey
• Generally gravity survey is taken during the
initial stages of exploration and are designed for
reconnaissance of large unexplored areas.
• An anomaly in earth’s gravity can be related to
buried geological feature
• In gravity survey for hydrocarbon exploration,
variation in gravitational acceleration are
measured which are very small. Therefore,
milligal is generally used as the most suitable
unit for measuring gravitational acceleration.
• Geological interpretation of gravity data is not
easy as it involves more uncertainties than
interpretation of seismic data because
The field observed at any point is the
summation of gravitational attractions of all
subsurface causatives.
Lack of uniqueness in gravity field from a
sub surface source means that an infinite
number of possibilities is possible from single
gravity data
Magnetic survey
• Magnetic prospecting is done for exploration of
both hydrocarbons and minerals.
• Sedimentary rocks exert a very small magnetic
effect compared to igneous rocks. Virtually all
variations in magnetic intensity result from
topographical or lithological changes associated
with the basement or from igneous intrusive.
• Today, all magnetic survey are done from air or
from ships due to speed, economy and
convenience.
Seismic survey
Seismic data is basically a sampled electrical signal • Seismic reflection technique is the first detail
representing the Earth response to a seismic source approach to have information about stratigraphic &
measured in time and /or depth. structural relationship of the subsurface strata.
• The objective of seismic stratigraphy is to build up
a picture of the subsurface geology, including an
indication of the distribution of different facies and
large-scale stratal relationship.
• Seismic reflection is caused by the density
contrasts along sedimentary bedding planes

33
Typical Seismic section

34
Reservoir
A permeable sub-surface rock that contains hydrocarbons are known as Reservoirs. These reservoirs are generally
sedimentary rocks (Sandstone and Limestone) and highly fractured igneous rocks are also known to produce
hydrocarbon but in smaller quantity.

Trap: It a place were oil/ gas get entrapped may be an anticlinal feature, a faulted trap or a stratigraphic feature.
For the hydrocarbons to accumulate and not migrate further, there needs to be seal or cap rock, which is usually
shale.

35
Classification of reservoir based on
Drive mechanism
 In oil reservoirs, there are basically six drive mechanisms that provide the natural energy necessary for
recovery:
• Depletion drive
• Gas cap drive
• Water drive
• Gravity drainage drive
• Combination drive
• Liquid expansion and rock compaction drive
 The recovery of oil by any of the natural drive mechanisms is called primary recovery.
 During primary recovery, hydrocarbons are produced from reservoir without the use of any process (such as
fluid injection) to supplement the natural energy of the reservoir.
 Although no two reservoirs are same in all aspects, they can be classified according to the primary recovery
mechanism by which they produce.
 Each drive mechanism has certain typical performance in terms of:
• Pressure-decline rate
• Gas-oil ratio
• Water production
• Ultimate recovery factor

36
Depletion drive

• As the reservoir pressure drops during production, expansion

of the oil and its dissolved gas provides most of the reservoir's
drive energy. Additional energy is obtained from the expansion
of the rock and its associated water.
• Depending on the discovery pressure the reservoir is saturated
or under saturated
• The recovery factor ranges from 5% to 30% of OOIP

37
Gas cap drive

• In gas cap reservoir the primary energy is provided by the initial gas
cap, which expands as the reservoir pressure drops.
• The rate of pressure decline is closely related to the size of the
initial gas cap.
• Reservoir will be in saturated condition and there will be no
artificial method required during initial period.
• Generally the recovery factor ranges from 20% to 40% for a gas cap
reservoir.

38
Water Drive

• In water drive reservoir as pressure decline due to the

production, water from the aquifer pushes the oil up.
• An efficient water drive reservoir requires a large aquifer
body with a high degree of transmissibility allowing large
volumes of water to move across the oil-water contact in
response to small pressure drop.
• Recovery factor ranges from 40% to 70%

39
Combination drive • Most oil reservoirs produce under the
influence of two or more reservoir drive
mechanisms, referred to collectively as a
combination drive. A common example is an oil
reservoir with an initial gas cap and an active
water drive.
• The production trends of a combination drive
reservoir reflect the characteristics of the
dominant drive mechanism. A reservoir with a
small initial gas cap and a weak water drive will
behave in a way similar to a solution gas drive
reservoir, with rapidly decreasing reservoir
pressure and rising GORs.
• Recovery from a combination drive reservoir
can often be improved by minimizing the effect
of depletion drive mechanisms by substituting
or augmenting more efficient ones through
production rate management or fluid injection.
To do this, the drive mechanisms active in a
reservoir must be identified early in its life.

40
Drilling
The efficient use of energy and equipment, to construct and maintain a conduit, which explores or
exploits some underground objective.

DATE PURPOSE LOCATION DEPTH LINING

BIBLE
UNKNOWN WATER - -
(GENESIS)

UNKNOWN PYRAMIDS EGYPT 20 ft -

BRINE
600 B.C. TIBET 450 ft Bamboo
(SALT)

600 A.D. OIL (LAMPS) JAPAN 600 – 900 ft Wood

1765 WATER BURMA Shallow Wood

U.S.A.
1859 OIL 69 ft -
Col. Drake

1901 OIL SPINDLETOP 1160 ft Steel

41
Drilling cost dimensions
• Typically spends 50% of total E&P CAPEX.
• Drilling rigs range from 10-400 thousand USD/day.
• Total rates range from 30 - 500 thousand USD/day.
• One rig has 60-100 people at any time.
• These people come from 10-15 companies.
• The safety hazards are significant.
• Consequence of mistakes can be huge

42
Basic drilling
Drill hole Case hole Cement Drill hole Case hole Cement

43
Drilling basic
Drill reservoir Log reservoir Case reservoir Cement Perforate

44
SITE PREPARATION
• To stake a well, a surveyor accurately determines the well location and elevation .
• A plat (map) of the site is prepared and registered with the appropriate government agency.
• Access roads are created / or in swamp conditions, access canals are built.
• A large pit, the reserve pit, is dug and lined with plastic next to the drilling rig.
• It will hold unneeded drilling mud, cuttings, and other materials from the well.
Well Locations - Offshore

Southern North Sea

 • If it is going to be a deep well, a rectangular pit (cellar) can
be dug and lined with boards or cement.
• The cellar provides space below the drilling rig for blowout
preventers (BOP).
• Provisions are made for water supply.
• If the well is shallow (to 3,000 ft /1,000 m), the entire drilling
rig comes on the back of a truck or trailer.
Cellular and conductor casing for a well • This is a truck-mounted or portable rig.
• If the well is deeper, the rig comes in modules on the back of
several tractor-trailers.
• The modules are specifically designed to be trucked and be
quickly fitted together at the drill site with large pins secured
with cotter pins.

Pin with cotter pin used to secure drilling

rig modules
Rig assembly on site
Semi-Submersibles (Rig Moves)

Nautilus, Gulf of Mexico

Fast Rig move

In very remote areas, a helirig is used. It

is made of specially designed modules
that are transported by helicopter.
Offshore Drilling units