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Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Portfolio production
Production
Time
R
p
R = reserves
p = production rate
f = supply rate
maximum (technical) production rate: p = k R
RRR = f/p = reserve replacement rate
R/p = reserves to production ratio
The world's about 950 giant oil and gas fields are considered those with 500 million
barrels of recoverable oil or gas equivalent. Geoscientists believe these giants account for
40 percent of the world's petroleum resources.
They are clustered in 27 regions of the world, with the largest clusters in the Persian Gulf
and Western Siberian Basin..
Ekofisk/
Valhall
Statfjord
Gullfaks
Ormen Lange
Smrbukk/Draugen
Heidrun
Norne
Barents Sea
Norwegian Sea
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Finding hydrocarbons
Studies of the geological and geophysical information, involving
sophisticated computer modelling of geological processes, seismic
interpretation, and analysis of analogue information from petroleum
provinces around the world, allow the probabilities of finding reserves
of a certain magnitude to be assessed.
In a well-defined mature area with fully appraised discoveries, for
instance, there may be a high degree of certainty about the current
reserves, but little chance of finding major additions.
In a speculative venture in a little known area, on the other hand, the
chances of finding any hydrocarbons at all may be low, but there is also
the possibility of making a very large discovery.
However, as even the most sophisticated analysis can only yield a very
broad indication of the chances of finding commercial quantities of oil
and gas, hydrocarbon exploration remains a classic example of decisionmaking under uncertainty.
Exploration process
Abandonment
and removal
Operation
and
maintenance
Project
execution
Appraisal
and
planning
Exploration
Exploration
End
production
Start
production
Project
sanction
Discovery
Licence
award
Concession
round
Pre concession
work
Operation
Project development
Seismic surveys
Seismic surveys
2D seismic: A vertical section of seismic data consisting of numerous adjacent traces
acquired sequentially. A group of 2D seismic lines acquired individually, as opposed to the
multiple closely spaced lines acquired together that constitute 3D seismic data.
3D seismic: A set of numerous closely-spaced seismic lines that provide a high spatially
sampled measure of subsurface reflectivity. In a properly migrated 3D seismic data set,
events are placed in their proper vertical and horizontal positions, providing more accurate
subsurface maps than can be constructed on the basis of more widely spaced 2D seismic
lines, between which significant interpolation might be necessary.
In particular, 3D seismic data provide detailed information about fault distribution and
subsurface structures. Computer-based interpretation and display of 3D seismic data allow
for more thorough analysis than 2D seismic data.
4D seismic: Three-dimensional (3D) seismic data acquired at different times over the same
area to assess changes in a producing hydrocarbon reservoir with time. Changes may be
observed in fluid location and saturation, pressure and temperature.
4C seismic: Four-component (4C) borehole or marine seismic data are typically acquired
using three orthogonally-oriented geophones and a hydrophone within an ocean-bottom
sensor (deployed in node-type systems as well as cables). Provided the system is in contact
with the seabed or the borehole wall, the addition of geophones allows measurement of
shear (S) waves, whereas the hydrophone measures compressional (P) waves.
Illustration of 2D seismic
Illustration of 3D seismic
4D SEISMIC
Illustration
of 4D seismic
1985
1999
Ocean bottom
seismic
Illustration
of (4C)
ocean
bottom
(4C) seismic
Hydrophone
In August 2011 a large oil discovery was made on the Aldous Major South prospect in the
Norwegian sector of the North Sea. A minimum 65-metre oil column was confirmed. The
exploration well also established a common oil/water contact between the Aldous and
Avaldsnes structures.
An additional well will be drilled in Aldous Major North to clarify the further potential and
any communication with Aldous/Avaldsnes. Aldous/Avaldsnes has been described as the
largest offshore discovery in the world in 2011.
Exploration drilling
Rock cuttings, core samples and geophysical data from well surveys are
used to gain information from wells. Rock cuttings brought to the surface
by drilling mud and specially taken core samples enable geologists to
understand the geological history and, if hydrocarbons are discovered, the
nature of the reservoir.
Key physical properties of the rocks drilled are obtained from wireline
logs. Drilling is halted and a recording device known as a sonde is passed
down the bore hole on an electric cable. Alternatively, formation data can
be measured during drilling with special downhole tools in the drill-string.
By measuring the electrical, acoustic and radioactive properties of the
rocks, the presence of hydrocarbons can be detected and information
collected on the different formations.
Well testing
If a well finds oil or gas, additional insight into reservoir properties and well
performance under operating conditions can be obtained from a flow test.
Depending on such issues as the value of information gained and environmental
constraints, this could be a short drill-stem test or a longer test using
temporary production facilities (Extended Well Test -EWT).
2010
2009
2008
2007
2006
2005
2004
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2002
2001
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1990
45
40
35
30
25
20
15
10
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
700
500
400
300
200
100
Drilling costs
General investigations
Field evaluation
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
0
1985
mill.NOK'2010
600
Administration
Cost of exploration
1,00
0,90
0,70
0,60
0,50
0,40
0,30
0,20
0,10
Drilling costs
General investigations
Field evaluation
Administration
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
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1992
1991
1990
1989
1988
1987
1986
0,00
1985
Relative costs
0,80
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
15
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
Exploration/Investments, percent
30
25
20
10
Seismic data from Lofoten (Nordland VI and VII and Troms II) have been
obtained by NPD over three years at a total cost of 420 mill.NOK.
The data will be sold (made available) to oil companies at a cost of 15% of the
420 mill.NOK (about 60 mill.NOK)
Year 2
Year 3
Year 4
Licence award
Administration
Seismic surveys
Exploration wells
Appraisal wells
Technical sudies
Drill?
Continue or stop?
Develop?
350
300
250
Start development
200
150
100
Discovery
50
0
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Geology
Geology is the science comprising the study of solid Earth
and the processes by which it evolves.
Geology provides primary evidence for plate tectonics, the
history of life and evolution, and past climates.
Petroleum geology refers to the specific set of geological
disciplines that are applied to the search for hydrocarbons
Geology
Subsurface disciplines
Seismic
acquisition &
processing
Seismic data
acquisition
Seismic
processing
Seismic
interpretation
analysis
Seismic
interpretation
Seismic LFP
Geo
operations
Operations
geology and data
acquisition
Play &
prospectevaluation
Prospect
analysis
Structural
geology
Structural
geology &
tectonics
Basin analysis
& geochemistry
Basin modelling
and geochemistry
Petrology
Reservoir
modelling
Geological reservoir
modelling &
uncertainty analysis
Production geology
Drainage strategy
Drainage
strategy
Reservoir
technology
Petrophysics
Petrophysics
and fluid-rock
analysis
Core analysis
Reservoir
simulation
Reservoir
simulation
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Basin analysis
Basin
Basins are large scale areas of the Earths crust with a long history of subsidence and
within which a thick sequence of sediments has accumulated.
Basin analysis involves making an interpretation of the formation, evolution,
architecture and fill of a sedimentary basin by examining geological variables
associated with the basin.
Basin analysis provides a foundation for extrapolating known information into unknown
regions in order to predict the nature of the basin where evidence is not available.
Basin
At Svalbard you will see rocks protruding through the ice that you normally just
find under the seabed, which is very special.
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Plays are developed in order to define areas where leads and prospects
may be identified. The critical elements are: source rock, reservoir rock
and top seal rock.
Petroleum system
A petroleum system is defined by geologic components and
processes necessary to generate and store hydrocarbons, including a
mature source rock, migration pathway, reservoir rock, trap and seal.
Appropriate relative timing of formation of these elements and the
processes of generation, migration and accumulation are necessary
for hydrocarbons to accumulate and be preserved.
The components and critical timing relationships of a petroleum
system can be displayed in a chart that shows geologic time along
the horizontal axis and the petroleum system elements along the
vertical axis.
Exploration plays and prospects are typically developed in basins or
regions in which a complete petroleum system exists or has some
likelihood of existing.
Play definitions
A play (or a group of interrelated plays) generally occurs in a single
petroleum system (Norwegian: play = letemodell)
Play: A geographically and stratigraphically delimited area where a
specific set of geological factors is present so that petroleum should be
able to be proven in producible volumes. Such geological factors are a
reservoir rock, seal, mature source rock, migration routes, and that the
seal was formed before the migration of petroleum ceased.
Prospect
A possible petroleum
trap with a mappable,
delimited volume of rock.
or..an area of
exploration in which
hydrocarbons have been
predicted to exist in
economic quantity.
oran anomaly, such as
a geologic structure or a
seismic amplitude
anomaly, that is
recommended by
explorationists for
drilling a well.
a lead is an indication of
a prospect
Basin
Petroleum system
Play
Lead/Prospect
(3)
Play Probabilities
P(Reservoir): The probability of occurrence of reservoir facies
on a regional scale.
Prospect Probabilities
P(Reservoir): The probability of occurrence of reservoir facies with
Short summary
Basin: basins are large scale areas of the Earths crust with a long history
of subsidence and within which a thick sequence of sediments has
accumulated. A sedimentary basin may contain petroleum systems
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Reservoir
A reservoir is a subsurface body of rock having sufficient porosity
and permeability to store and transmit fluids.
Sedimentary rocks are the most common reservoir rocks because
they have more porosity than most igneous and metamorphic rocks
and form under temperature conditions at which hydrocarbons can
be preserved.
A reservoir is a critical component of a complete petroleum system.
An accumulation of hydrocarbons
Sea bottom
Gas
Oil
Water
Permeable reservoir rock
Migration
Source rock
In geology, rock or stone is a naturally occurring solid aggregate of minerals. The Earth's
outer solid layer, the lithosphere, is made of rock.
In general rocks are of three types, namely, igneous, sedimentary and metamorphic.
Igneous rocks
Igneous rocks are the first great class. "Igneous" comes from the Latin for fire, and all igneous rocks
began as hot, fluid material. This material may have been lava erupted at the Earth's surface, or
magma (unerupted lava) at shallow depths, or magma in deep bodies (plutons). Rock formed of lava is
called extrusive, rock from shallow magma is called intrusive and rock from deep magma is called
plutonic.
The two best-known igneous rock types are basalt and granite, which differ in composition. Basalt is
the dark, fine-grained stuff of many lava flows and magma intrusions. Its dark minerals are rich in
magnesium (Mg) and iron (Fe), hence basalt is called a mafic rock. So basalt is mafic and either
extrusive or intrusive. Granite is the light, coarse-grained rock formed at depth and exposed after
deep erosion. It is rich in feldspar and quartz (silica) and hence is called a felsic rock. So granite is
felsic and plutonic.
basalt
granite
Sedimentary rocks
Sedimentary rocks are the second great rock class. Whereas igneous rocks are born hot, sedimentary rocks
are born cool at the Earth's surface, mostly under water. They usually consist of layers or strata, hence
they are also called stratified rocks. Depending on what they're made of, sedimentary rocks fall into one of
three types, Clastic, Organic and Chemical Sedimentary Rocks.
Clastic: The most common set of sedimentary rocks consist of the granular materials that occur in
sediment: mud and sand and gravel and clay. Sediment mostly consists of surface minerals quartz and
clays that are made by the physical breakdown and chemical alteration of rocks. Sand and mud is carried
down rivers to the sea, mostly. Sand is made of quartz, and mud is made of clay minerals. As these
sediments are steadily buried over geologic time, they get packed together under pressure and low heat,
not much more than 100C. In these conditions the sediment is cemented into rock: sand becomes
sandstone and clay becomes shale.
Organic: Another type of sediment actually forms in the sea as microscopic organisms plankton build
shells out of dissolved calcium carbonate or silica. Dead plankton steadily shower their dust-sized shells
onto the seafloor, where they accumulate in thick layers. That material turns to two more rock types,
limestone (carbonate) and chert (silica).
sandstone
shale
limestone
Metamorphic rocks
Metamorphic rocks are the third great class of rocks. These are what happens when
sedimentary and igneous rocks become changed, or metamorphosed, by conditions
underground. The four main agents that metamorphose rocks are heat, pressure, fluids and
strain.
Quartzite
Marble
Gneiss
Petrophysics
Reservoir Rocks
The main reservoir rocks are made up of:
sandstones
carbonates
These are sedimentary rocks, in other words rocks made up of
sediments formed at the earth's surface by debris (mineral, animal
and vegetable) or chemical precipitations.
They are stratified in successive beds.
Porosity
A rock sample is considered. Its apparent
volume or total volume VT consists of a
solid volume VS and a pore volume VP. The
porosity is:
= VP/VT
It is often stated that the porosity is:
Low:
Mediocre:
Average:
Good:
if < 5%
if 5% < < 10 %
if 10% < < 20 %
if 20% < < 30 %
Excellent:
if > 30%
Nearly all rocks and sediments contain openings called pores or voids, which come in all
shapes and sizes.
The fraction of total volume occupied by pores or voids is called porosity. Materials
containing a relatively large proportion of void space are described as porous or said to
possess "high porosity."
Permeability
During production, the fluids flow in the rock pores with greater or
lesser difficulty, depending on the characteristics of the porous
medium.
Darcy's Law
The specific or absolute permeability of a rock is the ability of the
rock to allow a fluid with which it is saturated to flow through its
pores. Permeability can be determined by Darcy's Law, an
experimental law.
1
10
50
200
<1 mD:
to 10 mD:
to 50 mD:
to 200 mD:
to 500 mD:
> 500 mD:
Very low
Low
Mediocre
Average
Good
Excellent
NB.: in a porous medium, the permeability generally varies with the flow direction.
Permeability (mD)
Porosity (%)
Saturations
In the pore volume Vp there may be found a volume Vw of water, a
volume Vo of oil, and a volume Vg of gas
(Vw + Vo + Vg = Vp).
The oil, water and gas saturations are:
expressed in percent, with Sw + So + Sg = 100 %.
Knowing the volumes of oil and gas in place in a reservoir requires
knowing the saturations at every point, or at least a satisfactory
approximation.
Viscosity
A property of fluids and slurries that indicates their resistance to
flow, defined as the ratio of shear stress to shear rate.
Poise is the unit for viscosity, equivalent to dyne-sec/cm2.
Because one poise represents a high viscosity, 1/100 poise, or one
centipoise (cp), is used for measurements.
One centipoise equals one millipascal-second.
Viscosity must have a stated or an understood shear rate in order
to be meaningful. Measurement temperature also must be stated or
understood.
Finding hydrocarbons
Cost of exploration
Reservoir description,
characterization of
reservoir rocks
Geology and formation of Prospect evaluation
hydrocarbons
Prospect evaluation
Prospect evaluation is a technical/economical calculation of the
expected value of a prospect.
The calculated expected value is used as basis for decision making
(drill or not drill, buy or sell etc.)
Prospect evaluation is a complex multidisciplinary task.
Prospect evaluation
the main steps
Cost&schedules
Production profile
Geology
Reservoir
Wells
Facilities
E(NPV)
Commercial
Economy
Basin evaluation
Probabilities
Play evaluation
Recoverable
Prospect evaluation
P(source)
P(prospect)
Recovery factor
Net/Gross
ratio
P(reservoir)
P(trap)
Shrinkage
Expansion
Gas/Oil
ratio
Porosity
P(source)
Saturations
P(discovery)
HC volume
in place
Source rock
Available charge, volume and HC type
P(seal)
Recoverable
resources
P(play)
P(reservoir)
Rock volume
Thickness
Area
Quality
Maturity
Migration
Calibration
Technical / Economical
evaluation
Development
Cash-flow
Income
Costs
Technical
Economical
Production
E(NPV)
10 Questions
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