Global Petroleum Issues

Overview
Oil fuels world commerce
40% of global primary energy demand
Current demand ~22 billion bbl/yr
IEA & EIA predict rapidly rising demand
Major production capacity needed
Reserves depleting fast
IEA International Energy Agency
EIA Energy Information Administration
US Production
1970 peaked at 9.1 billion bbl/yr (1.4 billion m
3
)
Decline began in 1970s
1977 levelled off at 8.2 billion bbl/yr
1980 decline halted by boom in prices
1986 OPEC producers collapsed price
Prospects declined in mature US fields
Frontier (Alaska) closed to drilling
1993 Increased dependence on OPEC oil
1994 Gulf war vulnerability of Saudi supply
Oil Price in Y2K constant dollars
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p
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High Prices Spur N.American
Resource Development
Low Prices Slow N.American
Resource Development
World Supply
World endowment ~6000 billion bbl
Recoverable reserves ~2300 billion bbl
Technology may increase to ~3900 billion bbl
OPEC (mainly Middle East) 53%
OECD/OAS (W. Europe / Americas) 24%
Former Soviet Block 15%
China 4%
Rest of the World 4%
Reserves and Production
0
500
1000
1500
2000
2500
WORLD OPEC OECD/OAS FORMER
SOVIET
CHINA OTHER
B
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a
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Recoverable Reserves
Total Reserves
Inferred Reserves
Proved Reserves
Cumulative Production
World Production
World cumulative production to 2000 was
~811 billion bbl or about 35% of recoverable
reserves
billion bbl % produced
OPEC 346 28
OECD/OAS 278 51
Former Soviet Block 125 36
China 25 29
Rest of the World 37 42
Reserves and Production
0
500
1000
1500
2000
2500
3000
WORLD OPEC OECD/OAS FORMER
SOVIET
CHINA OTHER
B
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B
a
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Cumulative Production
Inferred Reserves
Proved Reserves
Reserves
Total global reserves are an estimate
of the total oil originally in place (OOIP)
Proved reserves are those established
by geologists/engineers that are
conventionally recoverable
Inferred reserves are those that may
be recovered with advanced technology
(this category may expand over time)
World Recoverable Reserves
OPEC
60%
OECD/OAS
18%
FORMER SOVIET
15%
CHINA
4%
OTHER
3%
Life of Reserves
Annual world production is ~21 billion bbl
By dividing the proven and inferred reserves
(billion bbl) by the current production rates
(billion bbl/yr), estimates of reserve life can
be obtained.
For the world as a whole proved reserves
have a life of ~39 years with inferred reserves
for a further ~39 years for a total of <80 years
Proved reserves for the OECD/OAS have a
life of <15 years
Lifetime of Reserves
0
20
40
60
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100
120
140
WORLD OPEC OECD/OAS FORMER
SOVIET
CHINA OTHER
L
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a
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s
Inferred
Proved
Location of World Reserves
OECD/OAS reserves are most depleted
(>50%) and have a short life (~40 years at
current rates)
The majority of the reserves (60%) are in the
former OPEC countries in the Persian Gulf
These reserves can be produced at current
rates for more than 100 years.
Former Soviet block reserves also have a
long life (> 100 years) but represent <15% of
world totals
Super Giants and Giants
341 40 World
16 0 Other
17 0 Europe
41 1 Africa
42 5 South America
56 5 Asia
59 2 North America
120 27 Middle East
Giants
>500 million bbl
Super Giants
>5 billion bbl
Location
Super Giants
Most petroleum is produced from a few (~40)
super-giant fields, fields holding over 500
billion barrels.
Because of their size, super-giant fields were
easily discovered.
In the continental United States it is certain
that no super-giant fields remain to be
discovered.
A super-giant or two might lie in the Alaskan
or Canadian Arctic.
Middle East Oil
116 96 14 82 0.74 Kuwait
75 98 41 57 0.81 UAE
53 102 39 62 1.30 Iran
479* 125 35 90 0.19* Iraq
55 287 142 145 2.92 Saudi Arabia
R/P Total Inferred Proved Annual
Production
Country
* Production limited by embargo
All units are billion barrels
OPEC Reserve Estimates
It is possible that OPEC reserves have been
inflated for political reasons
Reserve estimates were increased
significantly in the late 80s (when OPEC
quotas were tied to reserves)
97 95 Kuwait
98 33 UAE
93 48 Iran
100 47 Iraq
258 169 Saudi Arabia
1989 Est. 1986 Est. Country
2002 Reserve Estimates
Canadian Oil Sands have the potential to be
a major factor.
Assuming 20% of Oil Sands OOIP can be
recovered the reserves might be:
714 221 935 Middle East (Total)
180
89
5
Cumulative
Production
287 376 Saudi Arabia
81 261 USA
321 326 Canada (Oil Sands)
Remaining
Reserves
Estimated
Reserves
Country
Iran Oil History
1908 Oil discovered in SW Iran
1914 Production expanded during and after WWI
1939 Production fell sharply at the start of WWII
1943 Production reopened by Anglo-Iranian Oil Co.
1951 Iranian oil industry nationalized
1954 Working agreement between BP (formerly
AIOC) and National Iranian Oil Company (NIOC)
1973 Iran took full control of national oil industry
1973-1978 Five super-giant fields discovered
1979 Production fell in Iranian revolution
1980-1988 Iran-Iraq war limited production
Saudi Arabia Oil History
1933 Saudi concession granted to Arabian
American Oil Company (ARAMCO)
1938 First commercial discoveries
1948 Ghawar discovery - largest field in the world 82
billion bbls (13 billion m
3
)
1948-1955 Ten super-giant fields discovered
1956 National oil company formed
1965 Saudi Arabia overtook Kuwait as largest
producer
1974 Saudi government purchased majority holding
in ARAMCO
1988 Saudi ARAMCO fully nationalized
Regional Map
Regional Air Photo
Geologic Setting
Arabian-Iranian basin is underlain by
Precambrian basement
Wide platform slow intermittent subsidence
with shallow marine deposition throughout
Paleozoic and Mesozoic
Thick sequence of platform sediments
dipping gently to E and NE
Tectonic movement in Late Cretaceous finally
eliminated seaway
Folding of Zagros, Taurus and Oman
mountains took place at end of Tertiary
Structural Traps
Large number of N-S trending anticlines and
synclines related to basement uplifts on
platform
Many super-giant fields (eg Ghawar) are
contained within structural closures along
these N-S trends in Kuwait and Saudi Arabia
To N and E the sediments in the deeper part
of the basin were folded along NW-SE trends
Overthrusts and tight folding and faulting
occurs in NE Iran
Iran-Iraq oilfield follow these NW-SE trending
features
J urassic Saudi Reservoirs
J urassic reservoirs occur in the broad gently
folded structures in Saudi Arabia
Most oil is produced from the Late J urassic Arab
Formation consisting of permeable carbonates
and evaporites with a thick anhydrite caprock
Organic-rich mid-J urassic carbonates are the likely
source rocks
Four sequences of shallowing marine carbonates
and evaporites
Largest oil pools are in the oldest D-cycle
Ghawar is 225 km along strike, covers an area of
2250 km
2
and has an oil column of 400 m
Cretaceous Saudi-Kuwaiti Reservoirs
In NE Saudi Arabia the basal Cretaceous unit
contains zones that appear to be source rocks
Cyclic sedimentation predominated in the Middle
Cretaceous with the deposition of nonmarine
sandstones alternating with shallow marine
carbonates
The sandstones are the primary reservoirs in the
NE Saudi fields, including the super-giant
Safaniya, the worlds largest offshore oil field.
Burgan is located in Kuwait in a N-S trending
structure covering and area of over 2000 km
2
.
Production is from highly-permeable Cretaceous
sandstones
Tertiary Iranian-Iraqi Reservoirs
In Iraq, the oil fields, including the super-giant
Kirkuk pool are in younger Eocene and Oligocene
limestone reefs
The source rocks are thought to be Creatceous
The principal tectonic feature of Iran is the highly
folded Zagros mountain belt
Paralleling the mountain belt are a series of long
NW-SE trending asymmetric folds which contain
the major oil fields
The main reservoir is the Asmari Formation, a
reefal limestone of Oligocene to early Miocene
age with an evaporite caprock
ME Oil Pools
Maps
Conclusions
Any major expansion of world oil production
must come from the Middle East
North America and Europe are depleting
reserves at a rapid rate and production can
only be sustained for a few decades
Improvements in technology can substantially
increase inferred reserves (i.e. Oil Sands
Technology)
With world annual demand at ~22 billion bbls
proven world reserves will be depleted in < 40
years
SEDIMENTARY BASINS OF INDIA
I. INTERIOR ON LAND BASINS
(a) Undeformed Craton margin basins
Jaisalmer, Assam-Arakan
(b) Fore-deep basins
Punjab, Ganga & upper ASSAM
(c ) Interior Depressions
Vindhyan, Bikaner-NAGAUR,
Cuddapah, Bastar, Chattisgarh
Son-Mahanadi, Damodar,
Pranhita- Godavari & Decean Syneclise
II. Coastal basins with offshore extension.
a) Divergent margin basins:
i) West coast
Cambay, Bombay offshore, Saurashtra,
Kerala, Laksha-Dweep & Konkan.
ii) East coast
Bengal, Mahanadi, Krishna-Godavari,
Palar & Cauveri
Bengal, Mahanadi & K.G are delta types superimposed on linear down
faulted graden / rift type basins with an older cycle of sedimentation.
Kutch basin is different from other coastal basins & come under the type
extra-continental downwarp, seperated from Indus basin by an E-W trending
Basement High
b) Convergent margin basin
Andaman basin.
CATEGORY-I : Proved petroliferius basins with
Commercial production
ASSAM SHELF, BOMBAY OFFSHORE, CAMBAY,
CAUVERY, K-G & TRIPURA-CACHAR.
CATEGORY-II: Basins with known occurrences of
Hydrocarbon but without commercial
Production.
BENGAL, HIMALAYAN FOOT HILLS, J AISALMER,
MAHANADI.
CATEGORY-III: Basins without significant hydrocarbon
shows but which on general geological
reasons are considered prospective.
Bikaner- Nagaur , Kutch, Kerala, Lakshadweep, Konkan &
Savrashtra.
CATEGORY-IV: Poorly explored basins which on analogy
with similar hydrocarbon bearing basins
In the world seem to be prospective.
Arunachal foot hills, Decan Syneclise, Ganga valley,
Gondwana, Karewa, Mizoram, Manipur, Narmada and
Vindhyan basins.
STATISTICS OF KNOWN TRAP SITUATIONS
TRAP TYPE USA NON COMMUNNIST
COUNTRIES GIANTS
ANTICLINE 65.4% 58.2% 89.1%
FAULT 5.2% 7.8%
UNCONFORMITY 0.7% 6.0% 29.3%
STRATIGRAPHIC 10.2% 16.1 9.4%
COMBINATION 18.5% 11.9%
STATISTICS OF RESERVOIR LITHOLOGY
SANDSTONES 66.8% 61.7% 55.1 %
CARBONATE 31.9 % 32.0 % 41.9 %
FRACTURED SHALE & 1.3% 6.3% 3.0%
IGNEOUS & METAMORPHIC ROCKS
1867: First Well
Drilled At Makum,
Assam.
1889: First Producer
Well Digboi#1 drilled
by AR&T Company.
Until 1955, only
private oil
companies carried
out exploration of
hydrocarbon
resources.
Historical background
Historical background
Historical background

I n
I n
1955
1955
, Government
, Government
of I ndia decided to
of I ndia decided to
develop the oil and
develop the oil and
natural gas resources
natural gas resources
as part of the Public
as part of the Public
Sector development.
Sector development.

.Oil and Natural Gas

.Oil and Natural Gas
Directorate was set up
Directorate was set up
around a nucleus of
around a nucleus of
geoscientists from the
geoscientists from the
Geological Survey of
Geological Survey of
I ndia.
I ndia.
NOV. 1958
CAMBAY
1967
RAJ ASTHAN
1973
NAGALAND
1974
BOMBAY HI GH
1975
TRI PURA
1977-80
CAUVERY, KG
Opening up of
Opening up of
Petrolifrous
Petrolifrous
Basins by ONGC
Basins by ONGC
OCCURRENCE MODELS IN
PROVEN BASINS
CAMBAY BASIN
Sandstone/Siltstone
of Eocene
/Oligocene Age
Miocene Gas Sands
Unconventional
Reservoirs Like
Hydrocarbon Within
Fractured Deccan
Traps
Fractured Shale &
Coal
BOMBAY
OFFSHORE
Structural/Combina
tion Traps
Dolomitic
Limestone of
Eocene Age
Basal Clastics
Fractured
Basement
ASSAM
Structural/Combination &
Stratigraphic Traps
Basal Sandstone & Kopili
Pays Of Eocene,
Barail Sands Of
Oligocene
Tipam & Surma Sands Of
Miocene Age
Sylhet Limestone Of
Eocene Age
Fractured Basement In
Boroholla-Champang
K.G. and Cauvery
Structural/Combination & Stratigraphic Traps
Fractured Basement
Clastic reservoirs of Cretaceous to Plioecene age
Rollover anticlines associated with growth faults
Deep sea basinal fans, turbidites and incised valley fills
200m
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H
O
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S
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YANAM
KAKINADA
RAJAHMUNDRY
Chintalapudi
Masulipatnam
ELLORE
MANDAPETA
C
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KAIKLALUR
Avanigadda Avanigadda
Nuzivd
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++ ++ ++ ++
++ ++
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G
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OIL BEARING
COLOUR INDEX
GAS BEARING
GAUTAMI R.
V
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IS
H
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5 20km 0
SCALE
K
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IS
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IV
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CHENNAI
INDIA
S RI LANKA
MUMBAI
KRISHNA
GODAVARI
BASIN
CALCUTTA
DELHI
BAY OF BENGAL
ARABIAN
SEA
40 0 m
40 0m
2 0 0 0 m 2 0 00 m 3 0 0 0 m
3 0 0 0m
PROSPECT MAP OF KG BASIN
WITH TECTONI C ELEMENTS
NARASAPUR
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a. Major thrust in deep water sector and Frontier basins.
b. Consolidation of new plays in time and space in
producing basins.
Exploration Focus
Exploration Focus
Producing basins
Deep water basins
C H I N A
P
A
K
IS
T
A
N
NEPAL
DECCAN SYNECLISE
MYANMAR
BANGLADESH
Bhutan
BAY
OF
BENGAL
KALADGI
-
1
2
4
3
5
6
7
8
9
1
0
1
1
1
2
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3
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4
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Frontier basins
C H I N A
P
A
K
I S
T
A
N
N E P A L
BOMBAY
KRISHNA-GODAVARI
OFFSHORE
MYANMAR
BANGLADESH
ASSAMSHELF
Bhutan
BAY
OF
BENGAL
RAJASTHAN
C
A
M
B
A
Y
CAUVERY
SEDI MENTARY BASI NAL AREAS
(TOTAL 3.14 MI LLI ON SQ. KM.)
poorly explored
17%
moderate to well
explored
16%
unexplored
40%
exploration
initiated
27%
Exploration Focus
Exploration Focus
Frontier Basins
Frontier Basins
Frontier Basins
Horizon slice
Thrust on deep water exploration
Thrust on deep water exploration
Thrust on deep water exploration
Extensive seismic
programme during mid
nineties.
Focused 3D seismic
campaign during late
nineties.
Fan
Total prognosticated
reserves of I ndian deep-
water area would be
around 10 billion tonnes
Exploration Focus
Exploration Focus
ALTERNATE ENERGY:
ALTERNATE ENERGY:
COAL BED METHANE
COAL BED METHANE
A vast CBM reserve to the
tune of 850 BCM to 8
TCM is estimated to be
locked up in Indian
coals.
Best quality of coal seams
with adequate
thickness and rank
(high volatile A-B
grade to low volatile
bituminous) are known
in the Damoder Valley
grabens.
INDEX
1. Damodar Valley
2. Koel Valley
3. Sone Valley
4. Mahanadi Valley
5. Godavari Valley
6. Satpura Basin
7. Rajmahal
8. Deogarh Hazaribagh Group
9. Darjeeling & NEFA
10. Garo Hills
11. Khasi J aintiaHills
12. Mikir Hills
13. J ammu
14. Cambay Basin
15. Kutch
16. Bikaner Basin
17. J ungel Gali
1 to 9 are Lower Gondwanas of Permian age
10 to 17 are of Eocene age
INDEX
1. Damodar Valley
2. Koel Valley
3. Sone Valley
4. Mahanadi Valley
5. Godavari Valley
6. Satpura Basin
7. Rajmahal
8. Deogarh Hazaribagh Group
9. Darjeeling & NEFA
10. Garo Hills
11. Khasi J aintiaHills
12. Mikir Hills
13. J ammu
14. Cambay Basin
15. Kutch
16. Bikaner Basin
17. J ungel Gali
1 to 9 are Lower Gondwanas of Permian age
10 to 17 are of Eocene age
Exploration Focus
Exploration Focus
Estimated CBM
resource of I ndia is
about 262.5 bcm
BSR
ALTERNATE ENERGY: GAS HYDRATE
One cubic metre of pure
hydrate contains 164 m
3
of methane gas at STP.
NATI ONAL GAS HYDRATE PROGRAMME
WAS LAUNCHED BY THE MOP&NG I N
1997.
ONGC, STARTED I N-HOUSE STUDI ES
FOR EVALUATI ON OF GAS HYDRATE
RESOURCES I N I NDI AN OFFSHORE
AREAS.
BASED ON THE STUDI ES KG
OFFSHORE AREA HAS BEEN
I DENTI FI ED AS A MODEL FI ELD
LABORATORY.
Exploration Focus
Exploration Focus