1. Petroleum 101

2. Executive Summary A.What Is Petroleum? B.Where Does It Come From? C.How Do We Find It? D.How Do We Drill For It? E.What Do We Do With It?

3. A.What Is Petroleum? 1. Petroleum is naturally occurring and is often referred to as oil. a. Petro means "rock" and oleum means "oil“; thus, petroleum literally means “oil from rock” b.Petroleum is a fossil fuel; a nonrenewable resource. * Fossil fuel means that it was once living material 2.Crude oil or crude is unrefined oil or petroleum. 3. Oil is a mixture of hydrogen and carbon compounds referred to as hydrocarbons. a.Thousands of different types of hydrocarbons make up oil b.Simplest hydrocarbon is methane, or natural gas

4. 1.Petroleum migrates upward until it is trapped by a non- porous rock structure called a cap. This specific geologic formation is referred to as a “ trap.” 2.Subterranean traps are sought by the oil industry. B.Where Does It Come From?

5. 1.Surface geology 2.Seismic testing C.How Do We Find It?

6. 1.Obtain permits from government and drilling rights from landowners 2.Land clearing and road building 3.Oil Derrick / rotary drilling 4.Average well depth is one mile 5.Cost of drilling average well is ~ $300 per foot; ~ $1.4M /well 6.Offshore drilling is ~ 450K per day on low end up to over 1M per day on the high end D.How Do We Drill For It?

7. 1.If no oil is found, the well is term a “dry hole”, and the hole is capped 2.If oil is found in commercial quantities, then a pump jack or well head is installed 3.When a well’s production starts to decline, injection wells can be drilled to increase production 4.Once a well’s production becomes uneconomic, the well is capped E.What Do We Do With It?

8. 5.Oil is shipped to market and refined What Do We Do With It?

9. Return

10. Thumper Truck Return

13. The End