Mid-Term Review

WEEK 1
HISTORY
-first well 1859- illumination fuel by Edwin Drake
- Rockefeller- Standard Oil Trust, rules and regulations
-Dad Joiner and Doc Llyod- East Texas Oil Field-1930 geologist who discovered oil in Texas
-WW2 realized oil value- King Saud and Franklin Roosevelt 1945
-Ford/Carter in the 1970s Corporate Average Fuel Economy Standard
VARIABLES THAT MOVE OIL PRICES
-consumption
-production
-inventories
-spare production capacity
-geopolitical risks
-market variables
-futures market trading activity
-commodity investment
-exchange rates
-equity markets

WEEK 2
Well Logging:
-Pressure gradient- a seal of pressure different in which there is a uniform variation of pressure from
point to point
-Organic theory- formation from decay of plants and animals that lived millions of years ago
-animals went from aerobic environment to an anaerobic environment where they died.
(currents forced them to the bottom of the ocean where there is no oxygen)
-Inorganic theory- formation from chemical reactions between minerals
Oil=plankton
Coal=plants
-hydrocarbons are found in all living plants and animals
-higher viscosity=higher resistance to flow
Sw+so+sq=100%
Saturation of water/oil/gas
-when sw is less than 25%, only oil will flow
-when so is less than 25%, only water will flow
-oil originates in the source rock
-oil will migrate upward through time, until it hits impermeable rock
-salt domes are excellent traps for oil
-shape of grain in rock affects porosity
-similar shaped grains=higher porosity
-different shaped grains=lower porosity

Psia- pounds per square inch absolute

Psig- pounds per square inch on the gauge
Standard conditions:
14.7 psia
60 F
In thousands of cubic feet (mcf) or millions of cubic feet (mmcf)
Most commonly measured properties
-specific gravity or API gravity
-oil is lighter than water
-specific gravity of oil is less than 1 (varies)
-specific gravity of water is 1
-viscosity
-color
-odor
API (American Petroleum Institute) Gravity Scale
Specific gravity= (141.5)/(131.5+API)
-measured with a hydrometer
-a lease operator would use this on a daily basis
WATER
Water and natural gas help to push the oil into the well. If it happens to fast, the water will come up
and block any oil from being produced.
-connate water (sw)- water in the oil sample that is produced
-wetting water- fraction of the connate water that can never be produced because it is adhered to the
rock. Even if you are in a well without free flowing connate water, this water could have a percentage
of oil in it that could make it economically profitable
Bigger grains have less water. Smaller grains have more water

WEEK 4
-Porosity is measured as a percent.
-Different sized particles of sand can negatively affect porosity.
-in Louisiana there are clay particles within the shale. The clay particles tend to hold water and this
can cause the logging tool to give a bad reading
-connate water is the water that remains after the oil has filled the reservoir
-sw=volume filled with water/total pore volume
-so=volume filled by oil/total pore volume
-Sw+so=1
-sw increases as porosity decreases
-wetting water causes this
-sg=volume filled by free gas/total pore volume
-in a formation that contains connate, water, oil, and gas
-so+sw+sg=1
Porosity power point has sample problem**
Oil & Gas Volume Measurement Units
Oil volumes are measured in barrels (bbl or B)
1 bbl equaling approximately 5.614 cu ft.
or 42 gallons
Gas volumes in the U.S. oil industry are
measured in cubic feet at standard conditions
(scf). Standard conditions are: (14.7 psia, 60oF)
in thousands of cubic feet (mcf);
or millions of cubic feet (mmcf).
Specific Gravity =
141.5/131.5 + oAPI
Measured with a hydrometer
The specific gravity of water is 1; thus, because oil is lighter than water the specific
gravity of oil is < 1. The API gravity of water is 10; thus, because oil is lighter than water the API
gravity of oil is > 10
Crude Oil can be described as:
1) heavy - 10 to 20o API
2) medium - 20 to 30oAPI
3) light - >30oAPI
API Gravity
oAPI = |141.5/ sp gr @ 60oF|-131.5

Porosity
= total pore volume in a sample of rock/
total volume (pores + solids) of the sample
The equation above measures absolute porosity
Porosity, as defined in the oil industry, usually refers to effective porosity
Effective porosity: the percentage of the bulk volume of a rock sample that
is composed of interconnected pore spaces that allow the passage of fluids
through the sample.
Volume of Oil In Place
Suppose that geologist/engineers discover a reservoir that has an areal extend
of 2 million sq. ft., with a pay zone thickness of 30 ft. The following are steps
to calculate the volume of pay:
2,000,000 *30 = 6 * 10^7cu ft
If the porosity of the sand is 0.2, the pore volume available for fluids is
0.2 * 6 * 10^7= 12 * 10^6cu ft
If there is no other fluid, other than oil, then 12 * 10^6 cu ft is the volume of
oil in place. Oilfield sandstone values typically range from 5% to 30% porosity.
Porosity:
Factors that affect porosity in a sandstone reservoir are:
1) Packing the size of the sand grains do not affect porosity; however, the range of
variations of sand grains affect porosity. (size of sand grain might affect
effective porosity)
2) Shape if sand grains within a reservoir are elongated or flat and are packed with
their flat surfaces together than porosity might be low compared to a reservoir
with spherical shaped sand grains.
3) Deposition - arrangement in which grains were laid down and compacted, amount
of clay or other material that cement the sand grains together.
Fluid Saturations:
In a typical oil field, fluids consists of 1) connate water, oil, & free gas
For example: a piece of sandstone has a bulk volume of 100 cu ft and a porosity of
15%,Then the pore volume is 15 cu ft. I might be that the pore volume is 40% filled
with waterAnd 60% filled with oil. In this case, the volume of water present is 0.4 X
15 or 6 cu ft, andThe volume of oil present is 0.6 X 15, or 9 cu ft.
The water saturation (Sw) = volume filled by water/total pore volume
The oil saturation (So) = volume filled by oil/total pore volume
If oil & water are the only fluids present: Sw + So = 1 (total pore volume)
Rule of Thumb: Sw tends to increase as the porosity decreases

Since SW + So = 1, then So = 1-Sw=0.7

If we go back to problem 1: were we calculated total pore volume to equal
12 X 10^6cu ft, then if So =0.7 the volume of oil in place is 8.4 X 10^6cu ft
In many oil pools, in addition to oil & connate water, free gas is also present
Sg= volume filled by free gas/total pore volume
In a formation that contains connate water, oil, & free gas:So + Sw + Sg = 1
SO
Using problem 1: if Sw is 0.3 & Sg is 0.2 & So then ..
So = 1 0.3 0.2 = 0.5
then the volume of oil in place is:12 X 10^6X 0.5 = 6
X10^6cu ft

Conventional reservoirs Wells in conventional gas reservoirs produce from sands

and carbonates (limestones and dolomites) that contain the gas in interconnected pore
spaces that allow flow to the wellbore. Much like a kitchen sponge, the gas in the pores
can move from one pore to another through smaller pore-throats that create permeable
flow through the reservoir. In conventional natural gas reservoirs, the gas is often
sourced from organic-rich shales proximal to the more porous and permeable
sandstone or carbonate.
Unconventional reservoirs Wells in unconventional reservoirs produce form low
permeability (tight) formations such as tight sands and carbonates, coal, and shale. In
unconventional gas reservoirs, the gas is often sourced from the reservoir rock itself
(tight gas sandstone and carbonates are an exception). Because of the low permeability
of these formations, it is typically necessary to stimulate the reservoir
to create additional permeability. Hydraulic fracturing of a reservoir is the preferred
stimulation method for gas shales. Differences between the three basic types of
unconventional reservoirs include:

Tight Gas Wells produced form regional low-porosity sandstones and carbonate
reservoirs. The natural gas is sourced (formed) outside the reservoir and migrates into
the reservoir over time (millions of years). Many of these wells are drilled horizontally
and most are hydraulically fractured to enhance production.
Coal Bed Natural Gas (CBNG) Wells produced from the coal seams, which act as
source and reservoir of the natural gas. Wells frequently produce water as well as
natural gas. Natural gas can be sourced by thermogenic alterations of coal or by
biogenic action of indigenous microbes on the coal. There are some horizontally
drilled CBNG wells and some that receive hydraulic fracturing treatments.
However, some CBNG wells and some that receive hydraulic fracturing. CBNG wells
are mostly shallow,as the coal matrix does not have the strength to maintain porosity
under the pressure of significant overburden thickness.
Shale Gas Wells produced from low permeability shale formations that are also the
source for the natural gas. The natural gas volumes can be stored in a local macroporosity system (fracture porosity) within the shale, or within the micro-pores of the
shale, or it can be adsorbed onto minerals or organic matter within the shale. Wells
may be drilled either vertically or horizontally and most are hydraulically fractured to
stimulate production. Shale gas wells can be similar to other conventional and
unconventional wells in terms of depth, production rate, and drilling.
Different types of engineers-Drilling, petroleum, reservoir
Permeability, porosity, geology, fluid saturation
Pressure gradient, normal pressure gradient at certain depth
Seismic operations, water saturation, wetting water, connate water
Small grains have more wetting water because more surface area
Know what natural gas is, what is it primarily composed of-methane CH4
Petroleum land management, ethics
Essay question on the ethics articles
Standard oil, what started it, when it was broken up and why and what president

o Shale is the most abundant sedimentary rock.

Limestone, sandstone, and dolomite (clay) are reservoir rocks.
Lithology is the study of rock types:
o Measurement tools of lithology:
Gamma Ray
S.P. (spontaneous potential) cannot use is a cased hole.
Internal Transit Time tool is calibrated in water.
In a well log, Track 1 is always a lithology reading.
Where is the top of the sand on a hydrocarbon indicator?
o Where the reading decreases.
Where is the bottom of the sand?
o Where the reading increases.
Zone of Interest are containing hydrocarbons.
Porosity readings:
o HIGH density/LOW neutron = shale
o LOW density/HIGH neutron = natural gas
o SAME (on top of each other) = liquid
o Hydrostatic Head equations:
= .052 X Density X Weight
Calculate how much fluid is in a well
Abnormal Pressure:
o Artesian effect formations surrounding the reservoir trap the oil
and gas, but allow the water below the oil to reach up toward the
surface some distance away. (pg. 24)
o A formation with no outlet to the surface.
Folds rock strata that have buckled into wavelike structures.
Anticline the upward or arches in the wave
Syncline the downwarps or troughs in the wave
o ***Anticlines and syclines often contain petroleum.
Faults when rocks near the surface break, or fracture and the two halves
move in relation to each other.
o ***faults affect the location of oil and gas accumulations.

 Graben a long, narrow block of crust between two faults that has sunk
relative to the surrounding crust.
Horst a similar block to a graben that has risen.
Organic Matter is necessary for the formation of oil.
Organic Theory holds that oil and gas formed from the remains of plants
and animals.
o Geologists believe that high heat and pressure, bacteria, chemical
reactions, and other forces worked on the organic remains and
transformed them into oil and gas.
Inorganic Theory holds that petroleum is either left over from the
formation of the solar system or was formed later deep within the earth.
Oil and Gas are mixtures of different types of hydrocarbons.
Porosity and Oil:
o Any oil or gas that exists in the rock is in the rocks pores.
Like a sponge
o The greater the porosity of a formation, the more petroleum it is
able to hold.
o To be commercially valuable, reservoir rocks must have a porosity
of 10 % or more.
Permeability and oil:
o A rock is permeable when its pores are connected that is, oil, gas,
and water can flow through it by moving from one pore to another.
Traps are arrangements of rock layers that contain an accumulations or
hydrocarbons, yet prevent them from rising to the surface.
o Basic traps are those due to folds, faults, unconformities, domes or
plugs, changes in permeability within a formation.
Unconformity when a layer of rock has formed and eroded and new
sediment has been deposited on top of it to form a younger layer of rock.
o Three types:
Nonconformity newer layer is sedimentary
Disconformity old and new layers are parallel to each
other.
Angular unconformity older layer has deformed before
overlying rocks were deposited.
Wetting water a film of water that sticks to or is absorbed by the solid
rock material surrounding the pore space. (cannot be romoved)
Solution Gas VS. Free Gas

o Solution gas gas that is dissolved in oil.

o Free gas gas not dissolved in oil.
Gas Cap where the free gas forms at the highest structural part of the
reservoir.
Seismic Survey the last exploration step before an oil company actually
drills a prospective site.
o Give the explorationist more precise details on the formations
beneath the surface.
o Sends waves out that bounce back off of certain formations giving a
more accurate reading.
Well Logs are records of information about the formations through which
a well has been drilled.
Wireline Logs used to gather information down the drill holes by
sending a tool attached to a metal cable (sonde) and as it is raised up, the
measurements are being taken.
Core Samples a slender column of rock that shows the sequence of
rocks as they appear within the earth.
o It provides the most accurate information about the underground
formations.
Drill Stem Test (or DST) is the primary way to test a formation that has
just been drilled.
o It gives accurate data about a formations pressure and the
composition of the fluids in it.
Cable-tool drilling a powered walking beam raises and drops the cable
and attached bit into the hole, penetrating the formation.
Rotary Drilling like normal drilling, except drilling fluids are excreted
from the tip of the bit to keep it lubricated and to keep rock from clogging
the jets and bit.
Workers:
o Toolpusher contractors top manager on the drill site.
o Driller one person who operates the drilling rig.
o Derrickhand monitors condition of drilling mud and handles the
pipe as it is initially removed from the hole.
o Rotary helpers handle the pipe on the ground.
o Roustabouts assist the loading and unloading of tools and
equipment. Keep the rig clean and functionable.
Types of Contracts:
o Footage pay by the foot

o Daywork pay by day5

o Turnkey set amount of pay
Hoisting system has two main purposes: (1) to hoist the drill pipe in and
out of the hole and (2)to pull up on the drill pipe while drilling in order to
keep it in tension.
Parts:
o Drill Pipe: the actual piping.
o Drill String: used to connect the equipment in the hole to the
equipment on the surface.
o Drill collar: heavy pipes attached to the bottom of the drill string to
apply weight by pressing down on the bit.
o Drilling Joints: 30 ft. pipes that connect together to elongate the
drilling pipe.
Stand of Pipe : 3 joints tall ( 90 ft)
Derrick a permanent structure about 120 ft tall about the rig floor.
Mast same job as derrick, but portable.
Crownblock a set of pulleys that sit at the top of the derrick or mast.
Traveling block set of pulleys that move up and down the center of the
derrick or mast.
Drawworks one of the largest and heaviest pieces of equipment on a
drilling rig. It controls the brakes, clutches, and transmission of the drill.
Rotating system includes all the equipment that makes the bit turn.
o Swivel hangs from the drilling hook on the traveling block
allowing everything below it to rotate.
o Kelly special section of pipe ( 40 to 54 ft) that is flatter and not
round. Helps drill deeper, more easily.
o Rotary table supplies the necessary torque to turn the drill stem.
Top Drive a powered swivel that replaces the conventional swivel.
Types of bits:
o Roller cone three cone-shaped steel devices that are free to turn as
the bit rotates.
o Diamond bits contains small industrial diamond cutters embedded
in the sides and top of a fixed bit.
o Hybrid bits combine natural and synthetic diamonds and
sometimes even tungsten carbide on a fixed-head bit.
Circulating system:

o Drilling fluid or mud is pumped down the pipe, out the jets of the
bit, and back to the surface.
Two types of drilling rigs: electric and mechanical
Tripping OUT Pulling the drill stem and the bit out of the hole in order
to run casing, change bits, or perform some other operation in the
borehole.
Tripping IN after the casing has been placed, a smaller bit is put in that
fits the casing, and finally placed IN the hole.
Types of pressure:
o Hydrostatic pressure pressure exerted by drilling mud.
o Formation pressure pressure exerted by fluids in a formation.
Blowout preventers large valves that close off the well when sudden
pressure increases occur.
Oil field barrel 42 gallons
Sonic Logs to calculate porosity:

Resisivity Tool used to measure resistivity of the formation by using the

flow of electricity.
o High resistivity = hydrocarbons
o Low resistivity = water
Why do we drill directionally?
o It makes it possible to accomplish many things that cannot be done
with straight holes.
o Can get to oil reservoirs that cannot be reached through a straight
hole.
Fish an object lodged in the borehole.
o Must use directional drilling to get around it.