Post on 24-Jan-2016
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HARCROSChemicals Inc.
Oilfield Business - 101
An overview of the Oilfield Industry
Anu Kuehn
08/10/2009
HARCROSChemicals Inc.
Fun facts US Oil industry – 75% natural gas and 25% Oil8,000 companies with $80B combined revenueHalf of these companies have <5 employeesFragmented industryOnshore and Offshore operations Long process, Long timeCapital inten$ive – Drilling 35% industry revenueEver changing Government Rules and RegulationsDemand driven activitiesTechnology plays major role
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Oilfield Sectors
Upstream Exploration Drilling Cementing Completion Production
Downstream Refining and Processing Distribution and Marketing
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Exploration
Surface geographical studiesData collections from public recordsGeophysical Surveys Magnetic, electromagnetic, gravity,, seismic
Reservoir Development tools Driller’s logs, cores and cuttings, wireline logs,
formation test data, and basin Modeling
Exploratory wellsMany uncertainties and costlyLack of success can cost from $5M to $20M
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Off shore Seismic Acquisition
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Cross section of a Reservoir
Gas
Oil
Water
FossilsMicroscopic view
Oil drops in grains of sandOil drops in grains of sand
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Drilling
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Drilling Process Prepare the drill siteRigging up/moving the rig and related equipmentDrilling the surface holePump drilling mud/fluids Consists of water,
clay, special minerals and chemicals
Cools and lubricates the drill bit
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Drilling Process
Running surface casing (large steel pipe)CementingWell control Control
formation pressure
Prevent blow outs
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Spindle Top Blow out, 1901
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Drilling ProcessDrilling to final depthEvaluate formations/ decision makingSetting production casingAdditives
Corrosion control Filtrate control Lubricants Thinners Viscosifiers Surfactants
Deflocculants Dispersants Defoamers Shale stabilizers
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Cementing
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CementingPortland cement Objectives To seal the annulus after a casing string has
been run To seal a lost circulation zone To set a plug in an existing well To plug a well for abandonment
Cementing Additives Fluid loss and gas migration additives Cement retarders (increases thickening time) Cement extenders(to decrease the density) Accelarators, Dispersants and other special
chemicals
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Well CompletionMethod used is determined The characterstics of the reservoir Its economical potential
Methods Open-hole, perforated, tubingless
Drilling equipment is removedInstall the wellhead Seal off the well with safety valves and flow
control devices
Completion fluids Facilitates final operations before production Solids free Packer fluid inhibitors
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Production
Christmas treeChristmas treeOilwell head Pump Jacks
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Production MethodsInfluential factors
Underground pressure, oil/gas ratio, characteristics of rock, viscosity of oil
Primary Recovery Jed Clampett style Artificial lift (gas or pumps)
Secondary Recovery Acidizing
Corrosion Inhibitors, surfactants
Extenders, intensifiers, retarders
Hydraulic Fracturing Friction Reducers, gelling
agents, Proppants, breakers, biocides, clay control, surfactants
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Production Methods
Tertiary Recovery Chemical flooding
Polymer Surfactant-Polymer Alkaline
Gas injection CO2 Nitrogen Natural Gas
Water flooding Thermal Recovery
Steam drive Steam soak In situ combustion
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Production MethodsEnhanced Oil Recovery Original Oil In Place High water cut New investments Methods similar to tertiary recovery
Well servicing and Workover Part replacement Cleanout operations Well bore clean-up chemicals
Paraffin Inhibitors, Asphaltene Inhibitors Sand control
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Major Players in the Industry
Oil Companies (Operators) MNOCs – ExxonMobil, Shell NOCs – Petrobras, CNOC Independents – Anadarko, Devon
Service Companies Full service, Single service, global and
regional
Chemical CompaniesSpecialty and Commodity suppliers
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Supply Chain
S o lv en ts , e tc .. H u n tsm an , S te p an , B A S F
O ilfie ld C he m ica l C o m p an iesC lea rw a te r , C h am p ion , N a lco , a nd P e tro li te
Solvents, etc.
Huntsm an, Stepan
Niche Chem ical CompaniesSurfactants, Polymers, special processing
L a rg e C om m od it ie s S up p lie rsA c ids , S a nd
L a rg e d istr ib u to rs fo r V M I
O ilfield Service Com paniesBaker Hughes, BJ, HAL,SLB and W eatherford
S o lv en ts , e tc ..
H u n tsm a n , S tep an
O ilfie ld C he m ica l C o m p an iesC lea rw a te r , C h am p ion , N a lco , a nd P e tro li te
Solvents, etc.
Huntsm an, Stepan
Niche Chem ical CompaniesSurfactants, Polymers, special processing
Regional Service CompaniesSuperior W ell services, Cudd pum ping
O ilfie ld E q u ip m e nt com p a n ies
O il C o m p an iesM N O C s o r N O C s
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ConclusionOverview of Oilfield industryUpstream activitiesAdditivesMajor players and their suppliersQuestions/Comments Email: Akuehn@harcros.com Cell#: 281-705-9562