Presentation is loading. Please wait.

Presentation is loading. Please wait.

F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Lecture 1 Exploration Production Refining Marketing.

Similar presentations


Presentation on theme: "F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Lecture 1 Exploration Production Refining Marketing."— Presentation transcript:

1 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Lecture 1 Exploration Production Refining Marketing

2 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil A Fully-Integrated Oil Company Getting Refined Products to the Consumers Getting Raw Oil & Gas to the Refinery Refinery http://www.npl.co.uk/upload/img_400/oilrig.gif

3 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Components of the Upstream How to Get It Out – where, in detail, are the reserves? –what to build (facilities)? – will it be profitable? Find Oil & Gas Pools – which regions and basins? – which blocks? – where on the block? From the Ground, to the Refinery – how to manage the field? – how to deliver the crude?

4 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Oil Company Targets To maintain a healthy petroleum company, one would want to: Replace production (what you take out of the ground) with new reserves Exploration Finds Volumes Produced Keep finding costs below $1 per barrel Exploration Costs New Barrels < $1/barrel

5 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil We Need to Drill Wisely Wells can be very expensive, some > $200 million, a lot even for a major oil company Well placement and well path can be critical to success So ….. How can we determine where to drill and predict what we will find BEFORE we start drilling? This leads to the need for geologists, geophysicists, and other specialists focused on imaging and interpreting the subsurface

6 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil G&G in Exploration Which basins throughout the world offer the most promise? Which blocks in those basins should we bid for? Where on the block should we drill? What should we expect from a particular well? –What type of HC: oil, gas, or condensate? –What amount of HC will we recover: # barrels? –What sort of flow rates can we expect? –How risky is this well? –etc. Geoscientists are needed to answer questions such as:

7 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Explorations Task SuccessUneconomic Drill Wildcats Assess Prospects Drop Prospect Confirmation Well SuccessFailure Interpret Seismic Data Process Seismic Data Acquire Seismic Data Capture Prime Areas Identify Opportunities To Development Or Production

8 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil An Exploration Success The Bonanza Basin, offshore Somewhereia, was deemed to have high potential. Block 1 Block 5 Block 4 Block 3 Block 2 Block 8 Block 7 Block 6 Somewhereia Bonanza Basin

9 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil An Exploration Success The Bonanza Basin, offshore Somewhereia, was deemed to have high potential. We leased the two highest- ranked blocks in the last licensing round. Block 1 Block 5 Block 4 Block 3 Block 2 Block 8 Block 7 Block 6 Somewhereia Bonanza Basin

10 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil An Exploration Success The Bonanza Basin, offshore Somewhereia, was deemed to have high potential. We leased the two highest- ranked blocks in the last licensing round. 8 leads were identified, 3 passed economic screening and were matured into prospects. Bonanza Basin Block 8 Block 7 Lead A Lead B Lead C Block 8 Block 7 Alpha Prospect

11 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil An Exploration Success The Bonanza Basin, offshore Somewhereia, was deemed to have high potential. We leased the two highest- ranked blocks in the last licensing round. 8 leads were identified, 3 passed economic screening and were matured into prospects. We drilled a wildcat at the Alpha Prospect & found oil. Alpha Prospect Block 7 Bonanza Basin Discovery Well Block 8 Salt Diapir

12 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil An Exploration Success The Bonanza Basin, offshore Somewhereia, was deemed to have high potential. We leased the two highest- ranked blocks in the last licensing round. 8 leads were identified, 3 passed economic screening and were matured into prospects. We drilled a wildcat at the Alpha Prospect & found oil. A confirmation well proved that there are significant volumes of oil. Alpha FIELD EUR = 200 MBO.95 TCF Block 7 Bonanza Basin Discovery Well Confirmation Well Block 8 Salt Diapir Our estimate of ultimate recovery is 200 MBO.

13 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil G&G in Development Can we refine our picture of the distribution of oil at Alpha? Is the reservoir a single unit, or is it segmented (separate regions to drain)? How many wells/where should they be drilled? What sort of facilities (platform?) will we need? How can we speed-up time to first oil? What uncertainties remain? Exploration has drilled a discovery and a confirmation well. The ultimate recover for Alpha is estimated to be 200 MBO, which greatly exceeds the economic threshold of 100 MBO Questions:

14 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil We Need More Detail Reservoir Map at the end of Exploration Reservoir Map at the end of Development

15 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil We May Need Better Data Data Used for Exploration Data Reprocessed or Reshot for Development And Production

16 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil G&G in Production How should we manage the field so as to maximize our investments? Can we monitor how oil is being swept out of the reservoir? What about injection wells and enhanced recovery? Is there more oil in the vicinity – either at deeper depths or in nearby traps? Can we build a computer model of the field that matches existing production data? If so, we can test future recovery with different drilling scenarios. Production has begun at Alpha. The initial production rates are as expected. Questions:

17 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Reservoir Simulation Geologic Model Reservoir Simulation Oil Production Time HISTORY MATCH

18 F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil The Value of G&G to an Oil Company G&G work is done to add HC reserves (volumes) –New discoveries –More from discovered producing zones –Additional producing zones Get the most reserves at the lowest cost –Invest in the right basins –Drill in the optimum locations –Correctly assess what can be recovered –Avoid unnecessary wells


Download ppt "F W Schroeder 04 L 1 - Focus of IndustryCourtesy of ExxonMobil Lecture 1 Exploration Production Refining Marketing."

Similar presentations


Ads by Google