Production, Optimization and Operation

of Oil and Gas

Submitted By:

Aguilar, Mycole Clyde Dauag, Winslet Joy

Antonio, Carl Brian Tumanan, Thea Krizelda

Bihasa, Katherine Alodia Tejio, Carissa Jane

Borja, Michaela Angelica Villanueva, Joseph

Calimbas, Bea Mariz

Optimizing Oil and Gas Production: Connecting Upstream Midstream and Downstream Operations

The oil and gas industry has entered a transformative era of global competition what some analysts have labeled the new oil
order.

Global-Size Challenges

Growing complexity of operations.

Increasing regulatory pressures.

Growing skills gap.

Heightened security risks:

Improving Upstream Performance - Connecting Production

Advanced connected technology from Rockwell Automation is helping upstream oil and gas operations pull as much oil
and gas from reservoirs as possible, while increasing efficiencies and safety. This industry-specific application of The
Connected Enterprise is being called Connected Production by Rockwell Automation. Gas lift is one of the methods used
to improve recovery from older fields. These systems are designed to automatically sense and control the wellhead
variables of a gas lift production site.

Managing Midstream Transfers

Solutions that advance The Connected Enterprise have helped streamline and better secure midstream
operations, including an essential corner of the oil business hydrocarbon transfers. Hydrocarbon operations
are spread far and wide, often in remote areas. Either on wellheads, storage tanks, pipeline inlets or terminals,
buyers and sellers gain unattended access to oil supplies through a LACT unit. Until recently, accounting for
these buyer/seller transfers has been a far less sophisticated process. Most LACT units have little automation
and even less network connectivity. In fact, most rely on paper-based tickets that buyers drop into a mailbox
that stands next to the unit.

Refining Downstream Operations

Major refineries are sprawling industrial sites where the main units that process crude oil to generate gasoline,
jet fuel and other petroleum products are surrounded by hundreds of auxiliary operations. For example, a major
refinery may have seven or eight main processing units. Each of those may be supported by 10 to 20 subunits,
including process skids. The configuration of processes depends on various factors, including the location of
the facility, the types of raw petroleum it handles, and the products it refines.

Some ancillary units are critical to complying with environmental standards, such as onsite effluent treatment
facilities and electrostatic precipitators. Others are essential to the demanding job of keeping the refinery
running every hour of every day. Those include motor control centers and cogeneration plants.
OIL AND GAS EXPLORATION AND PRODUCTION

Exploration and Production (1): Oil Traps

Some rocks are permeable and allow oil and gas to freely pass through them

Other rocks are impermeable and block the upward passage of oil and gas

Where oil and gas rises up into a dome (or anticline) capped by impermeable rocks it cant escape. This is one type
of an Oil Trap.

Exploration and Production (2): Reservoir Rocks

The permeable strata in an oil trap is known as the Reservoir Rock

Reservoir rocks have lots of interconnected holes called pores. These absorb the oil and gas like a sponge

Exploration and Production (3): Seismic Surveys

Seismic surveys are used to locate likely rock structures underground in which oil and gas might be found

Shock waves are fired into the ground. These bounce off layers of rock and reveal any structural domes that might
contain oil

Exploration and Production (4): Drilling the well

Once an oil or gas prospect has been identified, a hole is drilled to assess the potential

The cost of drilling is very great. On an offshore rig, it may cost $10,000 for each metre drilled.

A company incurs vast losses for every dry hole drilled

Exploration and Production (5): Enhanced Recovery

Although oil and gas are less dense than water and naturally

rise up a well to the surface, in reality only 40-50% of the total will do so.

To enhance recovery, a hole is drilled adjacent to the well and steam is pumped down. The hot water helps to push the
oil out of the rock and up into the well.

Exploration and Production (6): Transport

Once extracted oil and gas must be sent to a refinery for processing

Pipelines transport most of the worlds oil from well to refinery

 Massive Oil Tankers also play an important role in distribution

Exploration and Production (7): At the Refinery

Before it can be used crude oil must be refined.

Hydrocarbons can be separated using distillation, which produces different fractions (or types) of oil and gas

Exploration and Production (8): Early History

The modern era of oil usage began in 1846 when Gesner perfected the art of paraffin distillation.

This triggered a massive worldwide boom in oil production.

California was centre of activity in the early 1900s, famous for its gushers.

Exploration and Production (9): The Situation Today

Global oil and gas occurrences are now well understood (provinces shown in green). Only Antarctica and the Arctic remain
unexplored.