6 Reason Why A Drilling Project Can Fail

Often, in spite of computers chock full of seismic data, months or years of study, and countless pre-drill techni-cal reviews by hordes of geoscientists and managers, wells still come up dry. A dry hole can be defined as a well that does not produce oil or gas in commercial quantities. There are relative degrees of dry holes, or dusters as they are often called. A hole can lack so much as a whiff of oil or gas, with no hydrocarbon shows detected by even the most sensitive gas chromatographs. Or, a well can be a near miss, with not quite enough ability to produce petroleum to make the economic cut. These latter types of dry holes are often re-visited in times of high oil and gas prices. Too, dry holes that were noncommercial
years ago can sometimes be re-entered and made into producing wells, thanks to ad-vances in completion technology.

Failures can stem from many factors:
1. Mechanical problems can force a com-pany to abandon a well. Drillpipe or drilling tools can get stuck in the hole, and some-times the well must be abandoned.
2. A hydrocarbon-bearing reservoir isn’t present in the wellbore—even though it may be a few feet away. Reservoirs can be faulted out by small structural displacements in the subsurface that can’t be detected with seis-mic data. And, rocks can change laterally; for ex-ample, a sandstone can grade into a shale in-terval.
3. The target reservoir is encountered, but the interval is too tight or too thin to produce economic quantities, or contains water in-stead of hydrocarbons.
4. A well drilled on a seismic anomaly finds conditions that are indeed anomalous, but that do not correlate to a productive reservoir. For instance, an anomaly may look like a gas-charged sandstone on seismic data,
but drilling reveals it is actually a thin, tight limestone layer.
5. The reservoir is found at a depth that is
lower than projections. Many assumptions about the acoustic velocity of the rock layers in an area are built into seismic interpreta-tions, and until wells are actually drilled esti-mates can be imprecise. Low wells are
usually wet.
6. A well intersects the reservoir at the an-ticipated depth, and has adequate porosity and permeability, but the hydrocarbons have leaked off because the seal wasn’t adequate. Or, trap, reservoir and seal are all found as predicted, but oil and gas never migrated into the area in the first place.

Where shall we drill?

Nonetheless, piles of highly processed seis-mic data, satellite images, high-tech well logs and computer-aided mapping programs can’t create oil or gas where none exists. The ex-plorer still must hunt for some basic clues. One of the most tried-and-true axioms of pet-roleum exploration is that the best place to look
for oil and gas is near where it’s already been found. Working in a known hydrocarbon basin eliminates many of the uncertainties of source, reservoir and seal, and the hunt can focus on lo-cation of possible traps.

The first phase of exploration is a search for traps similar to those that are already produc-ing. Explorers are also ever alert for possibili-ties of new trap types that have not yet been known to produce in an area, such as updip pin-chouts of permeability or fault traps. Oil and gas “shows” in previously drilled wells nearby are of supreme importance, be-cause they are direct indications that a trap ex-ists. Other important clues include changes in the rate of dip, dip reversal or flattening of dip of the rock layers. The location and position of faults is another key. These can indicate an un-usual structural condition. Seismic attributes offer other clues. Ampli-tudes of seismic signals contain tremendous ge-ological detail, and much effort is invested in interpreting these subtleties. One seismic signa-ture may show a promising gas-charged sand;
another may indicate a tight limestone bed with no commercial potential. Geologists and geophysicists formerly worked with pencils and paper maps and sec-tions; today they build complex, 3-D interpreta-tions
on their desktop workstations. The fundamentals of prospecting remain un-changed, but phenomenal trides have been made in an individual’s ability to view and inte-grate data from many sources.

The decision to drill
If, after carefully weighing all the data—and being fully aware of its varying degrees of reli-ability— an explorer still believes that an un-drilled trap does exist, a prospect has been born.exploration tools Maps have always been key tools of petro-leum exploration. Since the early 1900s, ex-plorers have found many il and gas fields by drilling domes and anticlines that could be identified from surface mapping. The size, po-sition, dips and strikes of surface beds are all recorded with instruments such as plane tables and runton compasses. Today, the map of an explorer includes this “traditional” information, as well as that gleaned from aerial photographs and satellite pictures. Early geologists made common use of sam-ple and drilling information from wells. As technology advanced, well log data and core data added a great deal of knowledge. Today, information from such instruments as formation sampling tools can assist in the evalu- ation of both rocks and fluids in a wellbore. Among wireline tools that provide valuable in-sights into the subsurface are electric, radioac-tive and acoustic logs, as well as dipmeters, borehole imaging logs and magnetic resonance imaging logs. Data from drillstem tests are also incorporated into a subsurface picture. Even geochemical techniques, which seek to corre-late surface measurements of various chemical compounds with the underground occurrence of hydrocarbons, are sometimes called into play.

Geophysicists also bring some tremen-dous tools to the trade of petroleum ex-ploration. Three common geophysical methods used to look for oil are magnetic, grav-ity and seismic exploration. Magnetic methods
measure the strength of the Earth’s magnetic field at a specific point on the surface, while gravity techniques seek to determine the strength of the Earth’s gravity at a location. Both methods are useful in reconnaissance mapping and are usually employed in the early stages of basin evaluation. Seismic is the real workhorse of the industry, however. In seismic prospecting, acoustic sources such as dynamite, vibrations or sonic impulses from compressed air transmit sound into the ground. As acoustic signals pass into the subsurface, they are reflected and refracted off the various sedimentary layers. Signals that
bounce back to the surface are recorded and processed to form an image of the subsurface. Two-dimensional (2-D) seismic yields a cross-sectional view of the subsurface in two planes, length and height, while a 3-D survey delivers a complete volume of data that allows the explorer to image the subsurface in fine de-tail. A further enhancement is 4-D seismic, which adds the dimension of time to the geo-physical
process. In this technique, successive

Petroleum exploration tools

Maps have always been key tools of petro-leum exploration. Since the early 1900s, ex-plorers
have found many oil and gas fields by drilling domes and anticlines that could be
identified from surface mapping. The size, po-sition, dips and strikes of surface beds are all
recorded with instruments such as plane tables and Brunton compasses. Today, the map of an
explorer includes this “traditional” information, as well as that gleaned from aerial photographs
and satellite pictures. Early geologists made common use of sam-ple and drilling information from wells.

As technology advanced, well log data and core data added a great deal of knowledge. Today, information from such instruments as formation sampling tools can assist in the eval-uation of both rocks and fluids in a wellbore. Among wireline tools that provide valuable in-sights into the subsurface are electric, radioac-tive and acoustic logs, as well as dipmeters, borehole imaging logs and magnetic resonance imaging logs. Data from drillstem tests are also incorporated into a subsurface picture. Even geochemical techniques, which seek to corre-late surface measurements of various chemical compounds with the underground occurrence of hydrocarbons, are sometimes called into play.

Geophysicists also bring some tremen-dous tools to the trade of petroleum ex-ploration. Three common geophysical methods used to look for oil are magnetic, grav-ity and seismic exploration. Magnetic methods measure the strength of the Earth’s magnetic field at a specific point on the surface, while gravity techniques seek to determine the strength of the Earth’s gravity at a location. Both methods are useful in reconnaissance mapping and are usually employed in the early stages of basin evaluation.

Seismic is the real workhorse of the industry, however. In seismic prospecting, acoustic sources such as dynamite, vibrations or sonic impulses from compressed air transmit sound into the ground. As acoustic signals pass into the subsurface, they are reflected and refracted off the various sedimentary layers. Signals that bounce back to the surface are recorded and processed to form an image of the subsurface. Two-dimensional (2-D) seismic yields a cross-sectional view of the subsurface in two planes, length and height, while a 3-D survey delivers a complete volume of data that allows the explorer to image the subsurface in fine de-tail.

A further enhancement is 4-D seismic, which adds the dimension of time to the geo-physical process. In this technique, successive 3-D surveys are acquired over an area to track the movements of fluids in the subsurface. Traditional seismic relies on the information carried in compressional waves, but an emerg-ing approach extracts subsurface information carried in shear waves. This type of seismic, called multi-component or full-wave seismic, is very good at imaging stratigraphic reservoirs and fractured reservoirs.

AN EXPLORATION GLOSSARY

OIL & GAS EXPLORATION GLOSSARY

Anticline: A fold, generally convex up-wards,
whose core contains stratigraphically
older rocks.

Core data: A solid column of rock up to
four inches in diameter taken from the well-bore
so geologists may study the rock forma-tion
for clues as to whether oil or gas is
present.

Drillstem test: A test of the productive ca-pacity of an oil or gas reservoir when the well is uncased. The test is conducted through the drill pipe to see if oil or gas is present in a certain formation; preliminary sampling aids the decision to complete or abandon the well.

Fault:A fracture or fracture zone along which the sides have been displaced relative to one another. A break or fracture in the Earth’s crust that causes rock layers to shift.

Field: An area in which a number of wells produce from a reservoir. There may be sev-eral reservoirs at various depths in a single field.

Horst: An elongate, uplifted block that is bounded by faults on its long sides.
Hydrocarbon An organic compound con-sisting of carbon and hydrogen. Hydrocar-bons
can be gaseous, liquid or solid.

Log: A continuous record as a function of depth of information on the rocks and fluids
encountered in a wellbore. The readings are commonly obtained by equipment lowered
by wireline into the wellbore. Acoustic, ra-dioactive and electrical readings are used to
identify the types of rocks and their charac-teristics. Measurement-while-drilling
(MWD) tools can accumulate data as the drill bit drills through the rock formation.

Permeability: The capacity of a rock to transmit fluids. A tight rock, sand or forma-tion
will have low permeability and thus, low capacity to produce oil or gas, unless the well
can be somehow fracture-stimulated to in-crease production. Expressed in millidarcies for tight reser-voirs and darcies for extremely permeable reservoirs.

Porosity: The volume of small to minute openings in a rock that allow it to hold fluids.
Measured in percentages, typically from near zero to about 35%. Prospect An area that is the potential site of an oil or gas accumulation. A lease or group of leases upon which an operator in-tends to drill.

Reserves: The volumes of oil and gas that can be profitably recovered from a well with existing technology and present economic conditions. Sedimentary rock A layered rock result-ing from the consolidation of sediment. Sedi-ments are materials that are transported and deposited by wind, water or ice, chemically precipitated from solution or deposited by or-ganisms.

Seismic: An earthquake or earth vibration,
including those that are artificially induced.

Strike: The direction taken by a structural
surface such as a bedding or fault plane.

Wellbore: That part of a well that is below
the surface. Hole diameters vary with the
type and purpose of wells; a common well-bore
diameter is a little less than nine inches.
(Source: Dictionary of Geological Terms,
Third Edition)

Steps In The Life Of An Oil & Gas Exploration & Production

Below are the steps taken before anybody can start drilling for oil & gas:

1. Acquire seismic, surface and subsur-face
data (well logs, cores and tests) in area
of interest.
2. Generate prospect idea.
3. Acquire leases through purchase or
farm-in arrangement.
4. Estimate drilling and completion costs
to test prospect.
5. Predict expected volume of reserves,
likely production rates and operating costs.
6. Run a model of economics to deter-mine
the rate of return, cash flow and ex-pected
value generated by the sale of the
oil and gas if the prospect is successful.
7. Assess stratigraphic and structural
risks and determine if the expected returns
are sufficient to justify the capital expendi-tures.
8. Apply for federal and/or state drilling
permits.
9. Contract drilling rig, mud-logger, ce-menting
and well logging services.
10. Prepare location and move in rig.
Piceance Basin.

IN PURSUIT OF PETROLEUM

IN PURSUIT OF PETROLEUM

The hunt for oil and natural gas uses tried-and-true
principles of petroleum accumulation combined with
the latest state-of-the-art tools.

Back in the earliest days of oil exploration, people looked for petroleum by drilling
along creeks, on top of oil seeps, and on surface domes and structures. Most times, luck
was more of a factor in their success than skill. The science of petroleum exploration devel-oped
along with the industry. Today, the easy oil and gas has already been found, and the
hunt for hydrocarbons is an extremely sophisti-cated, highly technical effort.
Oil and gas are now sought in many remote locations around the globe: in water more than
10,000 feet deep in the Gulf of Mexico, the deserts of Egypt and China, the mountainous
western Canada and Colombia, the islands of Indonesia, and the swamps along the coasts of
Louisiana and Nigeria’s Niger Delta. Nevertheless, the fundamentals of geology
remain unchanged. Oil and gas are found in sedimentary rocks, which cover about 75% of
the earth’s land area. About 700 sedimentary basins dot the world; about half of these have
been explored for oil and gas. Limestones, dolomites, sandstones, shales and siltstones are
the hunting grounds for petroleum geologists. It is within these layered rocks that the ex-plorer
searches for the four elements necessary for a petroleum accumulation: source, reservoir,
trap and seal. Petroleum source rocks are often thick, black marine shales laid down in ancient
seas. As soon as a plant or animal dies, bacteria attack its remains. If oxygen is plentiful, as in
soil, bacteria will consume all the organic mat-ter. But in very fine-grained muds deposited on
the sea floor, oxygen is limited and much of the organic matter escapes destruction. As these
muds are buried by successive layers of sedi-ment, rising heat “cooks” the organic matter,
throwing off water, carbon dioxide and hydro-carbons. Generating crude oil from organic matter in
source rocks is a slow process, requiring mil-lions of years. Temperatures must be just per-fect—
oil can only be formed between 120 and 350 degrees Fahrenheit, temperatures found at
burial depths between 5,000 and 21,000 feet. If the source rocks get any hotter, natural gas and
graphite are formed instead. Reservoir rocks are hosts for hydrocarbons.

Oil & Gas Glossary

What Is Petroleum?
Petroleum is the generic term used to describe crude oil,natural gas
and bitumen from oil sands ,all of which are hydrocarbons.Petroleum
is buried in various rock formations at different depths and can be either
liquid,gas or solid.

What is 3-D imaging?
Computers identify different rock layers and structures by calculating
the intensity of the reflected sound waves and the time it takes for
them to travel through the rocks and back to the surface.Processing
the data creates a three-dimensional image of the layers and location of
these structures.

How is petroleum formed?
It is believed that as ancient marine and plant life died,their remains were
covered with other sediments that eventually turned to rock.In time,
underground pressure,heat and other factors caused chemical changes in
the sediments containing these remains.Eventually the organic materials
in the sediments became hydrocarbons — organic chemicals composed
only of the elements hydrogen and carbon.

What is natural gas?
“Pure ” natural gas,,also known as methane,is a colourless,odourless,
highly combustible and clean burning hydrocarbon.Natural gas is used to
heat homes and businesses,to power major industries and as a raw
material for the petrochemical industry.When used as a fuel,natural gas
is scented so that,in the event of a leak,it may be detected quickly.

What is crude oil?
Crude oil is the liquid form of petroleum and is a mixture of many
different hydrocarbon compounds.Crude oil is refined and processed to
remove impurities like sulphur and to develop products that are useful to
the consumer and industry such as gasoline and diesel fuel.

What is a seismic survey?
In a seismic survey,a geophysical contractor ’s crew lays out a line or
several lines of sensitive receivers,called geophones or “jugs ”.Mechanical
vibrations are created and the geophones record the energy bounced
back as seismic waves from rock layers at various depths.

What is exploration?
Exploration includes geological field work,examining and
analysing existing wells,reviewing nearby oil producing fields
and reviewing other geophysical and seismic surveys about
the area.In the Northwest Territories,permits and
authorizations must be in place before exploring on Crown
or private lands.Please contact the Petroleum Development
and Benefits Division of DIAND for assistance.

How does a company get the right to explore a
parcel of land?
A company can get an exploration licence through the bid process
with the federal government,or through negotiations with
Aboriginal groups on private lands in the Inuvialuit Settlement
Region,the Gwich ’in Settlement Region and the Sahtu
Settlement Region.

How does a company get the rights to access surface lands?
Surface access through an exploration licence requires a land use
permit and other authorizations from the appropriate land and
water board and other agencies.On private lands,companies
require access through agreements with Aboriginal landowners.

What is a surface hole?
Wells are normally drilled in stages,anywhere between 60 to 400
metres deep depending on the total depth of the well.The surface
hole is drilled past the lowest natural occurrence of fresh water.A
steel pipe,called a “casing ”,is then inserted into the hole and the
space between the pipe and the walls of the hole is cemented to
protect the environment from contamination and prevents the hole
from collapsing.

How does oil or gas enter a well?
If a well contains oil or gas,a steel pipe is inserted and the area
around the hole is cemented to seal it.The next step is
‘perforation ’.A special tool shoots holes through the steel pipe and
cement and allows petroleum to enter the well.It is then pumped
to the surface and recovered.

Exploration Wells
•Wildcat:a well drilled in an area where no oil
or gas production exists nearby.
•Exploration:a well drilled to prove
the existence of an oil or gas field.
•Discovery:a well that establishes
a new oil or gas field.

Earning In Oil & Gas Industry

Average wage and salary earnings in the oil and gas extraction industry were significantly higher than the average for all industries. The average hourly earnings of non-supervisory workers in the oil and gas extraction sector were $18.58, and $16.92 for workers in the support activities for mining, compared with $15.67 for all workers in private industry. Due to the working conditions, employees at offshore operations generally earn higher wages than do workers at onshore oil fields. College-educated workers and technical school graduates in professional and technical occupations usually earn the most. Earnings in selected occupations in oil and gas extraction and support services appear in table 2.
Few industry workers belong to unions. In fact, only about 5 percent of workers were union members or were covered by union contracts in 2004, compared with about 14 percent of all workers throughout private industry.

Outlook In Oil & Gas Industry

Although worldwide demand for oil and gas is expected to grow, overall U.S. wage and salary employment in the oil and gas extraction industry is expected to decline by 6 percent through the year 2014, compared to an employment increase of 14 percent in all industries combined.
In general, the level of future crude petroleum and natural gas exploration and development and, therefore, employment opportunities in this industry, remains contingent upon the size of accessible reserves available and the going prices for oil and gas. Stable and favorable prices are needed to allow companies enough revenue to expand exploration and production projects to keep pace with growing global energy demand, particularly by India and China. Rising worldwide demand for oil and gas is likely to cause higher long term prices and generate the needed incentive to continue exploring and developing oil and gas in this country, at least in the short run. Over the moderate term, fewer reserves of oil and gas in the U.S. will cause a decline in domestic production, unless new oil and gas fields are found and developed.
Environmental concerns, accompanied by strict regulation and limited access to protected Federal lands, also continue to have a major impact on this industry. Restrictions on drilling in environmentally sensitive areas and other environmental constraints should continue to limit exploration and development, both onshore and offshore. However, changes in policy could expand exploration and drilling for oil and natural gas in currently protected areas, especially in Alaska.
In addition, environmental emissions standards already in place or planned for the future are expected to significantly limit the amount of sulfur and carbon dioxide levels that can be emitted by power plants. Employment in the natural gas exploration and production industry normally would grow with the increasing demand for cleaner-burning fuels, such as natural gas. However, recent high natural gas prices are limiting demand and causing some planned future power plants to return to coal as a power source, which could hurt the long term natural gas outlook.
While some new oil and gas deposits are being discovered in this country, companies increasingly are moving to more lucrative foreign locations. As companies expand into other areas around the globe, the need for employees in the United States is reduced. However, advances in technology have increased the proportion of exploratory wells that yield oil and gas, enhanced offshore exploration and drilling capabilities, and extended the production of existing wells. As a result, more exploration and development ventures are profitable and provide employment opportunities that otherwise would have been lost.
Despite an overall decline in employment in the oil and gas extraction industry, job opportunities in most occupations should be good. The need to replace workers who transfer to other industries, retire, or leave the workforce will be the major source of job openings as more workers in this industry approach retirement age, and others seek more stable employment opportunities in other industries. Employment opportunities will be best for those with previous experience and with technical skills, especially qualified professionals and extraction workers who have significant experience in oil field operations and who can work with new technology. More workers will be needed who are capable of using new technologies—such as 3-D and 4-D seismic exploration methods, horizontal and directional drilling techniques, and deepwater and subsea technologies—as employers develop and implement sophisticated new equipment.

Training and Advancement In Oil & Gas Industry

Workers can enter the oil and gas extraction industry with a variety of educational backgrounds. The most common entry-level field jobs, such as roustabouts or roughnecks, usually require little or no previous training or experience. Applicants for these routine laborer jobs must be physically fit and able to pass a physical examination. Companies also may administer aptitude tests and screen prospective employees for drug use. Basic skills usually can be learned over a period of days through on-the-job training. However, previous work experience or formal training in petroleum technology that provides knowledge of oilfield operations and familiarity with computers and other automated equipment can be beneficial. In fact, given the increasing complexity of operations and the sophisticated nature of technology used today, employers now demand a higher level of skill and adaptability, including the ability to work with computers and other sophisticated equipment.
Other entry-level positions, such as engineering technician, usually require at least a 2-year associate degree in engineering technology. Professional jobs, such as geologist, geophysicist, or petroleum engineer, require at least a bachelor’s degree, but many companies prefer to hire candidates with a master’s degree, and may require a Ph.D. for those involved in petroleum research. For well operation and maintenance jobs, companies generally prefer applicants who live nearby, have mechanical ability, and possess knowledge of oilfield processes. Because this work offers the advantage of a fixed locale, members of drilling crews or exploration parties who prefer not to travel may transfer to well operation and maintenance jobs. Training is acquired on the job.
Promotion opportunities for some jobs may be limited due to the general decline of the domestic petroleum industry. Advancement opportunities for oilfield workers remain best for those with skill and experience. For example, roustabouts may move up to become switchers, gaugers, and pumpers. More experienced roughnecks may advance to derrick operators and, after several years, to drillers. Drillers may advance to tool pushers. There should continue to be some opportunities for entry-level field crew workers to acquire the skills that qualify them for higher level jobs within the industry. Due to the critical nature of the work, offshore crews, even at the entry level, generally are more experienced than land crews. Many companies will not employ someone who has no knowledge of oilfield operations to work on an offshore rig, so workers who have gained experience as part of a land crew might advance to offshore operations.
As workers gain knowledge and experience, U.S. or foreign companies operating in other countries also may hire them. Although this can be a lucrative and exciting experience, it may not be suitable for everyone, because it usually means leaving family and friends and adapting to different customs and living standards.
Experience gained in many oil and gas extraction jobs also has application in other industries. For example, roustabouts can move to construction jobs, while machinery operators and repairers can transfer to other industries with similar machinery. Geologists and engineers may become involved with environmental activities, especially those related to this industry.

Occupation In Oil & Gas Industry

People with many different skills are needed to explore for oil and gas, drill new wells, maintain existing wells, and process natural gas. The largest group, construction and extraction workers, account for about 37 percent of industry employment. Professional and related workers account for about 14 percent of industry employment, and managerial, business, and financial workers account for about 12 percent. Transportation and material moving workers make up about 10 percent, and production workers about 9 percent (table 1).
A petroleum geologist or a geophysicist, who is responsible for analyzing and interpreting the information gathered, usually heads exploration operations. Other geological specialists also may be involved in exploration activities, including paleontologists, who study fossil remains to locate oil; mineralogists, who study physical and chemical properties of mineral and rock samples; stratigraphers, who determine the rock layers most likely to contain oil and natural gas; and photogeologists, who examine and interpret aerial photographs of land surfaces. Additionally, exploration parties may include surveyors and drafters, who assist in surveying and mapping activities.
Some geologists and geophysicists work in district offices of oil companies or contract exploration firms, where they prepare and study geological maps and analyze seismic data. These scientists also may analyze samples from test drillings.
Other workers involved in exploration are geophysical prospectors. They lead crews consisting of gravity and seismic prospecting observers, who operate and maintain electronic seismic equipment; scouts, who investigate the exploration, drilling, and leasing activities of other companies to identify promising areas to explore and lease; and lease buyers, who make business arrangements to obtain the use of the land or mineral rights from its owners.
Petroleum engineers are responsible for planning and supervising the actual drilling operation, once a potential drill site has been located. These engineers develop and implement the most efficient recovery method in order to achieve maximum profitable recovery. They also plan and supervise well operation and maintenance. Drilling superintendents serve as supervisors of drilling crews, overseeing one or more drilling rigs.
Rotary drilling crews usually consist of four or five workers. Rotary drillers supervise the crew and operate machinery that controls drilling speed and pressure. Rotary-rig engine operators are in charge of engines that provide the power for drilling and hoisting. Second in charge, derrick operators work on small platforms high on rigs to help run pipe in and out of well holes and operate the pumps that circulate mud through the pipe. Rotary-driller helpers, also known as roughnecks, guide the lower ends of pipe to well openings and connect pipe joints and drill bits.
Though not necessarily part of the drilling crew, roustabouts, or general laborers, do general oilfield maintenance and construction work, such as cleaning tanks and building roads.
Pumpers and their helpers operate and maintain motors, pumps, and other surface equipment that forces oil from wells and regulate the flow, according to a schedule set up by petroleum engineers and production supervisors. In fields where oil flows under natural pressure and does not require pumping, switchers open and close valves to regulate the flow. Gaugers measure and record the flow, taking samples to check quality. Treaters test the oil for water and sediment and remove these impurities by opening a drain or using special equipment. In most fields, pumping, switching, gauging, and treating operations are automatic.
Other skilled oilfield workers include oil well cementers, who mix and pump cement into the space between the casing and well walls to prevent cave-ins; acidizers, who pump acid down the well and into the producing formation to increase oil flow; perforator operators, who use subsurface “guns” to pierce holes in the casing to make openings for oil to flow into the well bore; sample-taker operators, who take samples of soil and rock formations from wells to help geologists determine the presence of oil; and well pullers, who remove pipes, pumps, and other subsurface devices from wells for cleaning, repairing, and salvaging.
Many other skilled workers—such as welders, pipefitters, electricians, and machinists—also are employed in maintenance operations to install and repair pumps, gauges, pipes, and other equipment.
In addition to the types of workers required for onshore drilling, crews at offshore locations also need radio operators, cooks, ships’ officers, sailors, and pilots. These workers make up the support personnel who work on or operate drilling platforms, crewboats, barges, and helicopters.
Most workers involved in gas processing are operators. Gas treaters tend automatically controlled treating units that remove water and other impurities from natural gas. Gas-pumping-station operators tend compressors that raise the pressure of gas for transmission in pipelines. Both types of workers can be assisted by gas-compressor operators.
Many employees in large natural gas processing plants—welders, electricians, instrument repairers, and laborers, for example—perform maintenance activities. In contrast, many small plants are automated and are checked at periodic intervals by maintenance workers or operators, or monitored by instruments that alert operators if trouble develops. In non-automated plants, workers usually combine the skills of both operators and maintenance workers.

Employment In Oil & Gas

The oil and gas extraction industry employed about 316,000 wage and salary workers in 2004. Of these, only 4 in 10 workers were employed directly by the oil and gas extraction companies. The rest worked as contractors in the support activities for mining sector, which also included workers who extract coal and minerals on a contract basis. Although onshore oil and gas extraction establishments are found in 42 States, almost 3 out of 4 of the industry’s workers in 2004 were located in just four States—California, Louisiana, Oklahoma, and Texas. While most workers are employed on land, many work at offshore sites. Although they are not included in employment figures for this industry, many Americans are employed by oil companies at locations in Africa, the North Sea, the Far East, the Middle East, South America, and countries of the former Soviet Union.
While slightly more than 50 percent of establishments employ fewer than 5 workers, the vast majority of workers are employed in establishments with 20 or more workers (chart 1). As more large domestic oilfields and gas fields are depleted, major oil companies are focusing their exploration and production activity in foreign countries. Consequently, smaller companies with less capital for foreign exploration and production are drilling an increasing share of domestic oil and gas. Technology also has significantly decreased the risk and cost for smaller producers.
Relatively few oil and gas extraction workers are in their teens or early 20s. About 56 percent of the workers in this industry are between 35 and 54 years of age.

Working Condition In Oil & Gas Industry

Working conditions in the industry vary significantly by occupation. Roustabout jobs and jobs in other construction and extraction occupations may involve rugged outdoor work in remote areas in all kinds of weather. For these jobs, physical strength and stamina are necessary. This work involves standing for long periods, lifting moderately heavy objects, and climbing and stooping to work with tools that often are oily and dirty. Executives generally work in office settings, as do most administrators and clerical workers. Geologists, engineers, and managers may split their time between the office and the jobsites, particularly while involved in exploration work.
Opportunities for part-time work in this industry are rare. In fact, a higher percentage of workers in oil and gas extraction work overtime than in all industries combined. The average nonsupervisory worker in the oil and gas extraction industry worked 43.5 hours per week in 2004, compared with 33.7 hours for all nonsupervisory workers on private nonfarm payrolls.
Oil and gas well drilling and servicing can be hazardous. However, in 2003 the rate of work-related injury and illness in the oil and gas extraction industry was 1.8 per 100 full-time workers and 2.7 for workers in support activities for mining, somewhat lower than the 5.0 for the entire private sector. Improvements in drilling technology and oil rig operations, such as remote-controlled drills, have led to fewer injuries.
Drilling rigs operate continuously. On land, drilling crews usually work 6 days in a row, 8 hours a day, and then have a few days off. In offshore operations, workers can work 14 days in a row, 12 hours a day, and then have 14 days off. If the offshore rig is located far from the coast, drilling crew members live on ships anchored nearby or in facilities on the platform itself. Workers on offshore rigs are always evacuated in the event of a storm. Most workers in oil and gas well operations and maintenance or in natural gas processing work 8 hours a day, 5 days a week.
Many oilfield workers are away from home for weeks or months at a time. Exploration field personnel and drilling workers frequently move from place to place as work at a particular field is completed. In contrast, well operation and maintenance workers and natural gas processing workers usually remain in the same location for extended periods.

Nature Of Oil & Gas Business

Oil and natural gas furnish about three-fifths of our energy needs, fueling our homes, workplaces, factories, and transportation systems. In addition, they constitute the raw materials for plastics, chemicals, medicines, fertilizers, and synthetic fibers. Petroleum, commonly referred to as oil, is a natural fuel formed from the decay of plants and animals buried beneath the ground, under tremendous heat and pressure, for millions of years. Formed by a similar process, natural gas often is found in separate deposits and is sometimes mixed with oil. Finding, developing, and extracting oil and gas are the primary functions of the oil and gas extraction industry. While some of these functions are done by the large oil companies, most are done by contractors working in the support activities for mining subsector, which is included in this industry.

Using a variety of methods, on land and at sea, small crews of specialized workers search for geologic formations that are likely to contain oil and gas. Sophisticated equipment and advances in computer technology have increased the productivity of exploration. Maps of potential deposits now are made using remote-sensing satellites. Seismic prospecting—a technique based on measuring the time it takes sound waves to travel through underground formations and return to the surface—has revolutionized oil and gas exploration. Computers and advanced software analyze seismic data to provide three-dimensional models of subsurface rock formations. This technique lowers the risk involved in exploring by allowing scientists to locate and identify structural oil and gas reservoirs and the best locations to drill. Four-D, or “time-lapsed,” seismic technology tracks the movement of fluids over time and enhances production performance even further. Another method of searching for oil and gas is based on collecting and analyzing core samples of rock, clay, and sand in the earth’s layers.

After scientific studies indicate the possible presence of oil, an oil company selects a well site and installs a derrick—a tower-like steel structure—to support the drilling equipment. A hole is drilled deep into the earth until oil or gas is found, or the company abandons the effort. Similar techniques are employed in offshore drilling, except that the drilling equipment is part of a steel platform that either sits on the ocean floor, or floats on the surface and is anchored to the ocean floor.

In rotary drilling, a rotating bit attached to a length of hollow drill pipe bores a hole in the ground by chipping and cutting rock. As the bit cuts deeper, more pipe is added. A stream of drilling “mud”—a mixture of clay, chemicals, and water—is continuously pumped through the drill pipe and through holes in the drill bit. Its purpose is to cool the drill bit, plaster the walls of the hole to prevent cave-ins, carry crushed rock to the surface, and prevent “blowouts” by equalizing pressure inside the hole. When a drill bit wears out, all drill pipe must be removed from the hole a section at a time, the bit replaced, and the pipe returned to the hole. New materials and better designs have advanced drill bit technology, permitting faster, more cost-effective drilling for longer periods.

Advancements in directional or horizontal drilling techniques, which allow increased access to potential reserves, have had a significant impact on drilling capabilities. Drilling begins vertically, but the drill bit can be turned so that drilling can continue at an angle of up to 90 degrees. This technique extends the drill's reach, enabling it to reach separate pockets of oil or gas. Because constructing new platforms is costly, this technique commonly is employed by offshore drilling operations.

When oil or gas is found, the drill pipe and bit are pulled from the well, and metal pipe (casing) is lowered into the hole and cemented in place. The casing’s upper end is fastened to a system of pipes and valves called a wellhead, or “Christmas Tree,” through which natural pressure forces the oil or gas into separation and storage tanks. If natural pressure is not great enough to force the oil to the surface, pumps may be used. In some cases, water, steam, or gas may be injected into the oil-producing formation to improve recovery.

Crude oil is transported to refineries by pipeline, ship, barge, truck, or railroad. Natural gas usually is transported to processing plants by pipeline. While oil refineries may be many thousands of miles away from the producing fields, gas processing plants typically are near the fields, so that impurities—water, sulfur, and natural gas liquids—can be removed before the gas is piped to customers. The oil refining industry is considered a separate industry, and its activities are not covered here, even though many oil companies both extract and refine oil.

The oil and gas extraction industry has experienced both “booms” and “busts” over the years, illustrating the cyclical relationship between the price of oil and employment. During periods of high oil and gas prices, the industry expands exploration and production and hires more workers. The opposite occurs during periods of low prices.

Simple Guide To Oil & Gas Refinary Part 3 - Purification

Once crude oil has been through separation and conversion,the resulting products are ready for purification,which is principally sulfur removal.This is done by Hydrotreating ,a process similar to Hydrocracking but without converting heavy molecules into lighter ones.In Hydrotreating,unfinished products are contacted with hydrogen under heat and high pressure in the presence of a catalyst,resulting in hydrogen sulfide and desulfurized product.The catalyst accelerates the rate at which the sulfur removal reaction occurs.In each case,sulfur removal is essential to meeting product quality specifications and environmental standards.

Other units in the refinery remove sulfur,primarily in the form of hydrogen sulfide,through extraction,which is a second method of purification. Whether through hydrotreatment or extraction,desulfurization produces hydrogen sulfide.Sulfur recovery converts hydrogen sulfide to elemental sulfur and water.

The residual sulfur is sold as a refinery by-product.

End Products
Modern refinery and petrochemical technology can transform crude oil into literally thousands of useful products.From powering our cars and heating our homes,to
supplying petrochemical feedstocks for producing plastics and medicines,crude oil is an essential part of our daily lives.It is a key ingredient in making thousands of products that
make our lives easier – and in many cases – help us live better and longer lives.

Simple Guide To Oil & Gas Refinary Part 2 - Conversion

Distillation separates the crude oil into unfinished products.However,the products do not
naturally exist in crude in the same proportions as the product mix that consumers demand.

The biggest difference is that there is too little gasoline and too much heavy oil naturally
occurring in crude oil.That is why conversion processes are so important.Their primary purpose is to convert low valued heavy oil into high valued gasoline.

All products in the refinery are based on the same building blocks,carbon and hydrogen chains,which are called hydrocarbons.The longer the carbon chain,the heavier the product will be.Converting heavier hydrocarbons to lighter hydrocarbons can be ompared to cutting a link on a steel chain to make two smaller chains.This is the function of the Fluidized Catalytic Crackers (FCCs), Cokers and Hydrocrackers .In addition to reaking chains,there are times when we want to change the form of the chain or put chains together.This is where the Catalytic Reformer and Alkylation are necessary.Specialized catalysts are of critical importance in most of these processes.
The FCC is usually the key conversion unit.It uses a catalyst (a material that helps
make a chemical reaction go faster,occur at a lower temperature,or control which reactions occur)to convert gas oil into a mix of Liquified Petroleum Gas (LPG),gasoline and diesel.

The FCC catalyst promotes the reaction that breaks the heavier chains in the right place to make as much gasoline as possible.However,even with the catalyst,the reactions require a lot of heat;therefore the FCC reactor operates at about 1,000 degrees Fahrenheit.

The heaviest material in the refinery is Vacuum Tower Bottoms (VTB)or “resid.” If allowed to cool to room temperature,it would become a solid.Some resid is actually sold into the paving asphalt market as a blend component.Resid is too heavy and has too many contaminants to process in the FCC.The Delayed Coker is used to convert this heavy material into more valuable products.The delayed coker uses high temperature to break the hydrocarbon chains.Delayed coking reactions are less selective than FCC reactions.Delayed coking also produces a relatively low valued petroleum coke as a by-product.

In some refineries,the FCCs and Delayed Cokers are supplemented by Hydrocracking.
Similar to the FCC,the Hydrocracker uses high temperature and a catalyst to get the desired reactions.In Hydrocracking,the catalyst stays in one place and the gas oil passes over the catalyst,whereas in the FCC the catalyst is much finer and moves together with the gas oil.

The catalyst compositions differ.In Hydrocracking,the reactions take place at high temperatures in the presence of high concentrations of hydrogen.The Hydrocracker produces products with low sulfur levels.The light liquid product can be sent directly to Catalytic Reforming and the other liquid products can be blended directly into jet fuel and diesel.

The conversion processes that have been discussed up to this point have focused
on reducing the length of some hydrocarbon chains.However,there are other hydro carbon chains that are too short.Butane is produced as a byproduct of other conversion
units.The Alkylation Unit (Alky)takes two butanes and combines them into a longer chain
using a catalyst.

The last conversion process is Catalytic Reforming .The purpose of the reformer is
to increase the octane number of gasoline blend components and to generate hydrogen for use in the refinery hydrotreaters.The same length carbon chains can have very different octane numbers based on the shape of the chain.Straight chains,or paraffins,have a relatively low octane number,while rings,or aromatics,have high octane numbers.At high temperatures and in the presence of hydrogen,the catalyst will “reform ” paraffins into aromatics,thus the name catalytic reforming.Some of the aromatics produced are sent to petrochemical manufacturers,where they are converted to plastics and fabrics.
of
crude oil makes.
Product Gallons per Barrel
Gasoline 19.4
Distillate Fuel Oil 9.7
(Includes both home
heating oil and diesel fuel)
Kerosene-Type Jet Fuels 4.3
Coke 2.0
Residual Fuel Oil 1.9
(Heavy oils used as fuels
in industry, marine
transportation, and for
electric power generation)
Liquefied Refinery Gases 1.9
Still Gas 1.8
Asphalt and Road Oil 1.4
Petrochemical Feedstocks 1.1
Lubricants 0.5
Kerosene 0.2
Other 0.4
Source: API

Simple Guide To Oil & Gas Refinary Part 1 - Separation

The first step is to separate the crude oil into its naturally occurring components.This is
known as separation and is accomplished by applying heat through a process
called distillation .

Separation is performed in a series of distillation towers,with the bottom product from
each tower feeding the next.A furnace in front of each distillation tower heats and
vaporizes the crude oil mixture.The vapor and liquid mixture is then fed into the
bottom section of the tower.The feed section is the hottest point in the distillation
tower and can reach as high as 750 degrees Fahrenheit.

Components that are still liquid at this elevated temperature become the tower ’s bottom product.Components that are in vapor form rise up the tower through a series of istillation stages.The temperature decreases as the vapors rise through the tower and the components condense.

The “yield ” from a distillation tower refers to the relative percentage of each of
the separated components,know as “product streams.”This will vary according to the
characteristics of the crude being processed.Because a liquid ’s boiling point decreases at lower pressures,the final distillation steps are performed in a vacuum to maximize liquid recovery.Products from the distillation tower range from gases at the top to very heavy,viscous liquids at the bottom.In all cases,these product streams are still onsidered “unfinished ” and require further processing to become useful products.

Oil & Gas Job Positions Available

There are so many category of job positions that you can apply. Here are the most applicable jobs:

- Oil & gas exploration, exploit, and production equipment
- Petroleum & petrochemical equipment and manufacturing
- Technology and equipment for geophysical exploration, well logging and drilling ( for onshore and offshore ).
- Examination & repair, maintenance, and management of petroleum & petrochemical equipments
- Technology and equipment for oil and gas pipeline engineering
- Technology and equipment for scientific research and laboratory in petroleum & petrochemical industry
- Driving Machinery including generation set
- Technological process and equipment for oil refining.
- PCL & DCS Control System, On-site Bus Technical Equipment
- Industrial automation plant and instrumentation
- Oil & gas ground technical equipment
- Technologies and equipment for safety, environmental protection, and energy conservation
- Petrochemical production and advanced material
- Electrical & electronic equipment, cable and electric wire
- Sales system and facilities in petrol & gas station
- Pipeline, tank car and special vehicles for oil and gas transportation
- Fluid control equipment- Compressor, Pump, Blower and Valve
- Fire and alarm equipment, articles for industrial safety and labor protection
- Industrial explosion-proof products
- Equipment for industrial rinsing, technology and material for anti-corrosion.
- Communication, management information system, and e-commerce
- Technology and equipment for loading & unloading, packaging, storing & transporting

Work in Oil and Gas Industry

There are 71 billion barrels of oil waiting to be discovered in the deep waters of the Gulf of Mexico... There are another 85 billion barrels off the coast of West Africa... And the waters that surround the Spratly Islands in the South China Sea could hold as many as 300 billion barrels... But the greatest secret of all is how much oil lies – untapped – beneath U.S. soil. You'll be amazed when you see the numbers.

Oil price nowadays is very expensive. USD 78++ per barrel price marking clearly show us that while other industry is having increase in their business cost (means less profit), ONLY oil & gas industry is making damn alot of money. That means more people are needed to get more oil from the earth, and big salary!

Get paid for RM 3,000 to RM 20,000 per month is normal in oil & gas field. Even for fresh graduates, they can earn up to RM 10,000 per month. At this blog, I will show you how Oil & Gas can afford you to offer such a big salary. I will also guide you on the requirement in term of knowledge and skills to qualified to work in Oil & Gas industry. I hope you will frequently read this blog to get best information to get employed and have big salary. Thanks!