Oil And Gas Resources

Presented by 19. Ankit Varshney 20. Ankur Gupta 21. Anshul Agarwal 22. Anshul Arya 23. Aravindh Sekar 24. Arpit Jain

CONTENTS
Crude Oil

Oil Shale
Oil Sands Natural Gas

Shale Gas
Coal Bed Methane

CRUDE OIL

PREAMBLE
Crude oil is predominantly a mixture of hydrocarbons. Under surface pressure and temperature conditions, the lighter hydrocarbons methane, ethane, propane and butane occur as gases, while the heavier ones from pentane and up are in the form of liquids or solids. An oil well produces predominantly crude oil, with some natural gas dissolved in it.

Composition of Hydrocarbons
Element
Carbon Hydrogen Nitrogen Oxygen

Percentage Composition
83 to 87% 10 to 14% 0.1 to 2% 0.1 to 1.5%

Sulfur
Metals

0.5 to 6%
less than 1000 ppm

OIL FORMATION

OIL QUALITY
Crude oil quality is measured in terms of density

(light to heavy) and sulfur content (sweet to sour). Sweet crude is commonly defined as oil with a sulfur content of less than 0.5%, while sour crude has a sulfur content of greater than 0.5%.

CLASSIFICATION
West Texas Intermediate (WTI), a very high-quality, sweet, light oil

delivered at Cushing, Oklahoma for North American oil Brent Blend, comprising 15 oils from fields in the Brent and Ninian systems in the East Shetland Basin of the North Sea. The oil is landed at Sullom Voe terminal in Shetland. Oil production from Europe, Africa and Middle Eastern oil flowing West tends to be priced off this oil, which forms a benchmark Dubai-Oman, used as benchmark for Middle East sour crude oil flowing to the Asia-Pacific region Tapis (from Malaysia, used as a reference for light Far East oil) Minas (from Indonesia, used as a reference for heavy Far East oil) The OPEC Reference Basket, a weighted average of oil blends from various OPEC (The Organization of the Petroleum Exporting Countries) countries Midway Sunset Heavy, by which heavy oil in California is priced

MEASUREMENT OF OIL-BARRELS
Oil is measured in Barrels usually written as bbl. One oil barrel is equal to: 42 US Gallons 34.97 Imperial Gallons 159 Litres 0.159 cubic meters 0.136 metric tonnes weight (depends of the density of the oil)

MEASUREMENT OF OIL- TOE

TONNE OF OIL EQUIVALENT This unit represents the energy generated by burning one metric ton (1000 kilograms or 2204.68 pounds) or 7.4 barrels of oil Conversion factors 1 barrel of oil equivalent (boe) contains approximately 0.146 toe (i.e. there are approximately 6.841 boe in a toe). 1 t diesel = 1.01 toe 1 m3 diesel = 0.98 toe 1 t petrol = 1.05 toe 1 m3 petrol = 0.86 toe 1 t biodiesel = 0.86 toe 1 m3 biodiesel = 0.78 toe 1 t bioethanol = 0.64 toe 1m3 bioethanol = 0.51 toe 1 MWh = 0.22 toe (assumes 39% thermal to electrical conversion efficiency) 1 MWh = 0.086 toe

ENVIRONMENTAL EFFECTS
Global warming

Oil spills
Tarballs

OIL SHALE

PREAMBLE
Oil Shales are usually fine-grained sedimentary rocks

containing relatively large amounts of organic matter from which significant quantities of shale oil and combustible gas can be extracted by destructive distillation.

SOME FACTS
Total world resources of oil shale are conservatively

estimated at 2.6 trillion barrels. petroleum-based crude oil is cheaper to produce than shale oil because of the additional costs of mining and extracting the energy from oil shale. Because of these higher costs, only a few deposits of oil shale are currently being exploited in China, Brazil, and Estonia. However, with the continuing decline of petroleum supplies, accompanied by increasing costs of petroleum, oil shale presents opportunities for supplying some of the fossil energy needs of the world in the years ahead.

CLASSIFICATIONS
Oil shales have been divided into three categories based on mineral composition carbonate-rich shale siliceous shale cannel shale

PROCESSES FOR PRODUCTION

APPLICATIONS
Oil shale can be used as a fuel in thermal power plants

There are oil shale-fired power plants in Estonia with a

generating capacity of 2,967 megawatts (MW), Israel (12.5 MW), China (12 MW), and Germany (9.9 MW). Other industrial uses include cement production by Kunda Nordic Cement in Estonia, by Holcim in Germany, and by Fushun cement factory in China. Oil shale can also be used for production of different chemical products, construction materials, and pharmaceutical products.

ENVIRONMENTAL CONSIDERATIONS
Oil shale mining involves a number of environmental impacts,

more pronounced in surface mining than in underground mining They include 1. Acid drainage induced by the sudden rapid exposure and subsequent oxidation of formerly buried materials 2. The introduction of metals into surface-water and groundwater, increased erosion and sulphur-gas emissions 3. Air pollution caused by the production of particulates during processing, transport, and support activities. 4. Oil shale extraction can damage the biological and recreational value of land and the ecosystem in the mining area.

THE INDIAN SCENARIO

Directorate General of Hydrocarbons (DGH) has

embarked on a project for the evaluation of oil shale potential in parts of Upper Assam and Arunachal Pradesh. No proven shale gas reserve has been determined. Much more ground work needs to be undertaken before the reserves can be established. Once this is done, selection of the appropriate technology can be taken up.

OIL SANDS

PREAMBLE
Bituminous sands, colloquially known as oil sands or

tar sands, are a type of unconventional petroleum deposit. The sands contain naturally occurring mixtures of sand, clay, water, and a dense and extremely viscous form of petroleum technically referred to as bitumen.

PRODUCTION
Because extra-heavy oil and bitumen flow very slowly, if

at all, toward producing wells under normal reservoir conditions, the sands must be extracted by strip mining or the oil made to flow into wells by in situ techniques, which reduce the viscosity by injecting steam, solvents, and/or hot air into the sands. These processes can use more water and require larger amounts of energy than conventional oil extraction, although many conventional oil fields also require large amounts of water and energy to achieve good rates of production.

RESERVES
Many countries in the world have large deposits of

oil sands, including the United States, Russia, and various countries in the Middle East. However, the world's largest deposits occur in two countries: Canada and Venezuela Because growth of oil sands production has exceeded declines in conventional crude oil production, Canada has become the largest supplier of oil and refined products to the United States, ahead of Saudi Arabia and Mexico.

NATURAL GAS

PREAMBLE

Natural gas is a gas consisting primarily of methane

It is created by methanogenic organisms in marshes,

bogs, and landfills Before natural gas can be used as a fuel, it must undergo extensive processing to remove all materials except methane By-products of that processing include ethane, propane, butanes, pentanes and higher molecular weight hydrocarbons

WORLD NATURAL GAS RESERVES AND PRODUCTION

COUNTRY GAS RESERVES (billion standard cu m) 44,800 29,600 25,300 8000 7700 5300 5500 4500 3100 2800 50,500 187,100 GAS PRODUCTION (million standard cu m) 588,900 138,500 116,700 42,400 611,000 33,600 28,500 80,400 82,000 96,800 1,374,500 3,193,300

Russia Iran Qatar Turkmenistan United States Nigeria Venezuela Algeria Indonesia China Rest of the world TOTAL

APPLICATION
Power generation
Domestic use Fertilizers

Aviation
Hydrogen Natural gas is also used in the manufacture of

fabrics, glass, steel, plastics, paint, and other products.

LIQUEFIED NATURAL GAS (LNG)

Natural gas at -162oC transforms into liquid This is done for easy storage and transportation LNG projects are highly capital intensive in nature The whole process consists of five elements:-

1. 2. 3. 4.

Dedicated gas field development and production. Liquefaction plant. Transportation in special vessels. Regassification Plant. Transportation & distribution to the Gas consumer.

5.

ENVIRONMENTAL IMPACTS
Natural gas is often described as the cleanest

fossil fuel However, in absolute terms it does contribute substantially to global carbon emissions Natural gas itself is a greenhouse gas (methane) far more potent than carbon dioxide when released into the atmosphere Methane has a radioactive forcing twenty times greater than carbon dioxide

INDIAN SCENARIO
Production of natural gas was almost negligible

at the time of independence At the end of 2010 production was 50.9 Billion Cubic Metres (BP Statistical Review of World Energy June11). The main producers of natural gas are ONGC, OIL, GAIL etc... Government have also offered blocks under New Exploration Licensing Policy (NELP)

IMPORT THROUGH TRANSNATIONAL GAS PIPELINES

(a) Iran-Pakistan-India (IPI) Pipeline Project

(b) Myanmar-Bangladesh-India Gas Pipeline Project

(c) Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline

SHALE GAS

PREAMBLE
Shales are fine-grained sedimentary rocks that can

be rich sources of petroleum and natural gas Shale gas refers to natural gas that is trapped within shale formations Shale gas includes includes coal-bed methane, gas from tight sandstones and methane hydrates Outside North America, shale gas has not yet been produced commercially

SHALE GAS TECHNOLOGY

Advantages
Adding significant quantities of

Disadvantages
Uncertainty over costs and

natural gas to the global resource base Shorter time to first production compared to conventional gas Using cleaner energy resource Broader use of new drilling technologies around the world Improved security of supply for gas- importing countries.

affordability Doubts about the environmental acceptability of the production technology Unclear rates of decline which may materially impact reserve estimates Local opposition to shale gas development

ENVIRONMENTAL IMPACT
Issues such as land use, water and air pollution

caused by the extraction and processing of shale gas It require large quantities of water for hydraulic fracturing process. Combustion and thermal processing generate harmful atmospheric emissions, including carbon dioxide CO2 is also released by the decomposition of the carbonate minerals in the extraction process

THE INDIAN SCENARIO

India has huge shale deposits across the Gangetic plain, Assam, Gujarat, Rajasthan, and many coastal areas

THE INDIAN SCENARIO(cont...)

In order to develop shale gas as a viable option for Indias energy self-sufficiency the following issues need to be addressed: Experience with technologies for shale gas extraction i.e. horizontal drilling and hydraulic fracturing. A favourable and investor friendly environment for shale gas development, like policy support from the government and other such factors. Environmental and water management aspects of shale gas development.

RECENT DEVELOPEMNET
A number of Indian oil and gas companies have attempted to acquire shale gas assets abroad. Reliance Industries Limited (RIL) has taken the lead and acquired significant stakes in three shale gas acreages in the US. Also, ONGC has commissioned global technology major Schlumberger to carry out pilot projects. Recently, Schlumberger has come out with the results and has made an initial gas-in-place estimate of 300-2,100 trillion cubic feet (tcf) in Indian shale gas basins.

COAL BED METHANE

COAL BED METHANE

Standard natural gas:

CH4 Methane forms along with coal It is held in the cleats with the coal Substantial water pressure needed to keep methane in the coal: 400 to 1000 ft ?

How is CBM Removed?

CBM is removed by

removing water pressure which holds CBM in place. Methane that was held in place by water pressure tends to follow the water as it is pumped to the surface, where it is captured and transported through pipelines. Fracking fluids are often first injected into the coal bed to break up the coal, making it easier for the water and gas to flow to the surface.

ENVIRONMENTAL IMPACTS
Air quality benefits arise from (1) Substituting clean-burning methane for dirtier fuels (2) the burning, rather than venting into the atmosphere, of coalbed methane released as a result of coal mining activities However, disposal of the large volumes of hazardous water that are produced from CBM wells is environmentally unacceptable

GLOBAL RESERVES

INDIAN SCENARIO
CBM policy for exploration & production of CBM was

formulated by the Government in July 1997 for carrying out CBM exploration activity in the country. Having the 3rd largest proven coal reserves and being the 4th largest coal producer in the world, India holds significant prospects for commercial recovery of CBM. CBM resource has been estimated to be around 4.6 TCM. A total of 26 CBM blocks and 13600 Sq Km area have been awarded in three rounds of CBM held so far.

Recent Developments-Award of Blocks Under CBM - IV bidding round

S.NO. 1. 2. 3. 4. 5. 6. 7. Block RM(E)-CBM-2008/IV TL-CBM-2008/IV IB-CBM-2008/IV SP(NE)-CBM-2008/IV ST-CBM-2008/IV AS-CBM-2008/IV MG-CBM-2008/IV Location Jharkhand Orissa Orissa Awardees Essar Oil Limited Essar Oil Limited Essar Oil Limited

Madhya Pradesh & Essar Oil Limited Chhattisgarh Madhya Pradesh Assam Tamil Nadu Arrow Energy-TATA Power Arrow Energy- Oil India Ltd GEECL Source-DGH

The awarded blocks covering an area of 3727 sq.km.

The estimated CBM resources of these 7 Blocks is about 330 BCM

BIBLIOGRAPHY
www.wikipedia.org

www.dghindia.org
www.deloitte.com/in www.worldenergy.org

www.geology.com
www.eia.gov www.opec.org