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Oil And Gas

Resources

Presented by19. Ankit Varshney

20. Ankur Gupta

21. Anshul Agarwal

22. Anshul Arya

23. Aravindh Sekar

24. Arpit Jain

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CONTENTS

Crude Oil

Oil Shale

Oil Sands

Natural Gas Shale Gas

Coal Bed Methane

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CRUDE OIL

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PREAMBLE

Crude oil is predominantly a mixture ofhydrocarbons. Under surface pressure andtemperature conditions, the lighter hydrocarbons

methane, ethane, propane and butane occur asgases, while the heavier ones from pentane and upare in the form of liquids or solids. An oil wellproduces predominantly crude oil, with some

natural gas dissolved in it.

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Composition of Hydrocarbons

Element Percentage Composition

Carbon 83 to 87%

Hydrogen 10 to 14%

Nitrogen 0.1 to 2%

Oxygen 0.1 to 1.5%

Sulfur 0.5 to 6%

Metals less than 1000 ppm

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OIL FORMATION

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OIL QUALITY

Crude oil quality is measured in terms of density(light to heavy) and sulfur content (sweet to sour).

Sweet crude is commonly defined as oil with a

sulfur content of less than 0.5%, while sour crudehas a sulfur content of greater than 0.5%.

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CLASSIFICATION

West Texas Intermediate (WTI), a very high-quality, sweet, light oildelivered at Cushing, Oklahoma for North American oil

Brent Blend, comprising 15 oils from fields in the Brent and Niniansystems in the East Shetland Basin of the North Sea. The oil islanded at Sullom Voe terminal in Shetland. Oil production fromEurope, Africa and Middle Eastern oil flowing West tends to bepriced off this oil, which forms a benchmark

Dubai-Oman, used as benchmark for Middle East sour crude oilflowing to the Asia-Pacific region

Tapis (from Malaysia, used as a reference for light Far East oil) Minas (from Indonesia, used as a reference for heavy Far East oil)

The OPEC Reference Basket, a weighted average of oil blends fromvarious OPEC (The Organization of the Petroleum ExportingCountries) countries

Midway Sunset Heavy, by which heavy oil in California is priced

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MEASUREMENT OF OIL-BARRELS

Oil is measured in Barrels usually written asbbl. One oil barrel is equal to:

42 US Gallons

34.97 Imperial Gallons 159 Litres

0.159 cubic meters

0.136 metric tonnes weight (depends of the densityof the oil)

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MEASUREMENT OF OIL- TOE

TONNE OF OIL EQUIVALENTThis unit represents the energy generated by burning one metric ton (1000

kilograms or 2204.68 pounds) or 7.4 barrels of oilConversion factors 1 barrel of oil equivalent (boe) contains approximately 0.146 toe (i.e. there are

approximately 6.841 boe in a toe).

1 t diesel = 1.01 toe 1 m3 diesel = 0.98 toe

1 t petrol = 1.05 toe 1 m3 petrol = 0.86 toe 1 t biodiesel = 0.86 toe 1 m3 biodiesel = 0.78 toe

1 t bioethanol = 0.64 toe 1m3 bioethanol = 0.51 toe 1 MWh = 0.22 toe (assumes 39% thermal to electrical conversion efficiency) 1 MWh = 0.086 toe

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ENVIRONMENTAL EFFECTS

Global warming

Oil spills

Tarballs

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OIL SHALE

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PREAMBLE

Oil Shales are usually fine-grained sedimentary rockscontaining relatively large amounts of organic matterfrom which significant quantities of shale oil andcombustible gas can be extracted by destructivedistillation.

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SOME FACTS

Total world resources of oil shale are conservativelyestimated at 2.6 trillion barrels.

petroleum-based crude oil is cheaper to produce thanshale oil because of the additional costs of mining and

extracting the energy from oil shale. Because of these higher costs, only a few deposits of oil

shale are currently being exploited in China, Brazil, andEstonia.

However, with the continuing decline of petroleumsupplies, accompanied by increasing costs of petroleum,oil shale presents opportunities for supplying some of thefossil energy needs of the world in the years ahead.

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CLASSIFICATIONS

Oil shales have been divided into three categoriesbased on mineral composition

carbonate-rich shale

siliceous shale cannel shale

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PROCESSES FOR PRODUCTION

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APPLICATIONS

Oil shale can be used as a fuel in thermal power plants

There are oil shale-fired power plants in Estonia with agenerating capacity of 2,967 megawatts (MW), Israel(12.5 MW), China (12 MW), and Germany (9.9 MW).

Other industrial uses include cement production byKunda Nordic Cement in Estonia, by Holcim inGermany, and by Fushun cement factory in China.

Oil shale can also be used for production of differentchemical products, construction materials, andpharmaceutical products.

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ENVIRONMENTAL CONSIDERATIONS

Oil shale mining involves a number of environmental impacts,more pronounced in surface mining than in undergroundmining

They include

1. Acid drainage induced by the sudden rapid exposure andsubsequent oxidation of formerly buried materials

2. The introduction of metals into surface-water andgroundwater, increased erosion and sulphur-gas emissions

3. Air pollution caused by the production of particulates

during processing, transport, and support activities.4. Oil shale extraction can damage the biological and

recreational value of land and the ecosystem in the miningarea.

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THE INDIAN SCENARIO

Directorate General of Hydrocarbons (DGH) hasembarked on a project for the evaluation of oil shalepotential in parts of Upper Assam and ArunachalPradesh.

No proven shale gas reserve has been determined.Much more ground work needs to be undertaken

before the reserves can be established. Once this is

done, selection of the appropriate technology can betaken up.

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OIL SANDS

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PREAMBLE

Bituminous sands, colloquially known as oil sands ortar sands, are a type of unconventional petroleumdeposit.

The sands contain naturally occurring mixtures ofsand, clay, water, and a dense and extremely viscousform of petroleum technically referred to as bitumen.

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PRODUCTION

Because extra-heavy oil and bitumen flow very slowly, ifat all, toward producing wells under normal reservoirconditions, the sands must be extracted by strip miningor the oil made to flow into wells by in situ techniques,

which reduce the viscosity by injecting steam, solvents,and/or hot air into the sands.

These processes can use more water and require largeramounts of energy than conventional oil extraction,

although many conventional oil fields also require largeamounts of water and energy to achieve good rates ofproduction.

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RESERVES

Many countries in the world have large deposits ofoil sands, including the United States, Russia, and

various countries in the Middle East.

However, the world's largest deposits occur in twocountries: Canada and Venezuela

Because growth of oil sands production has exceededdeclines in conventional crude oil production,

Canada has become the largest supplier of oil andrefined products to the United States, ahead of Saudi

Arabia and Mexico.

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NATURAL GAS

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PREAMBLE

Natural gas is a gas consisting primarily of methane

It is created by methanogenic organisms in marshes,

bogs, and landfills Before natural gas can be used as a fuel, it must

undergo extensive processing to remove all materialsexcept methane

By-products of that processing include ethane,propane, butanes, pentanes and higher molecularweight hydrocarbons

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WORLD NATURAL GAS RESERVES AND

PRODUCTION

COUNTRY GAS RESERVES(billion standard cu

m)

GAS PRODUCTION(million standard cum)

Russia 44,800 588,900

Iran 29,600 138,500

Qatar 25,300 116,700

Turkmenistan 8000 42,400

United States 7700 611,000

Nigeria 5300 33,600

Venezuela 5500 28,500Algeria 4500 80,400

Indonesia 3100 82,000

China 2800 96,800

Rest of the world 50,500 1,374,500

TOTAL 187,100 3,193,300

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APPLICATION

Power generation

Domestic use

FertilizersAviation

Hydrogen

Natural gas is also used in the manufacture offabrics, glass, steel, plastics, paint, and otherproducts.

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LIQUEFIED NATURAL GAS (LNG)

Natural gas at -162oC transforms into liquid

This is done for easy storage and transportation

LNG projects are highly capital intensive in nature

The whole process consists of five elements:-1. Dedicated gas field development and production.

2. Liquefaction plant.

3. Transportation in special vessels.

4. Regassification Plant.

5. Transportation & distribution to the Gas consumer.

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ENVIRONMENTAL IMPACTS

Natural gas is often described as the cleanestfossil fuel

However, in absolute terms it does contributesubstantially to global carbon emissions

Natural gas itself is a greenhouse gas (methane)far more potent than carbon dioxide when

released into the atmosphereMethane has a radioactive forcing twenty times

greater than carbon dioxide

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INDIAN SCENARIO

Production of natural gas was almost negligibleat the time of independence

At the end of 2010 production was 50.9 BillionCubic Metres (BP Statistical Review of WorldEnergy June11).

The main producers of natural gas are ONGC,

OIL, GAIL etc...Government have also offered blocks under New

Exploration Licensing Policy (NELP)

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IMPORT THROUGH TRANSNATIONAL

GAS PIPELINES

(a) Iran-Pakistan-India (IPI) Pipeline Project

(b) Myanmar-Bangladesh-India Gas PipelineProject

(c) Turkmenistan-Afghanistan-Pakistan-India(TAPI) pipeline

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SHALE GAS

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PREAMBLE

Shales are fine-grained sedimentary rocks that canbe rich sources of petroleum and natural gas

Shale gas refers to natural gas that is trapped

within shale formationsShale gas includes includes coal-bed methane, gas

from tight sandstones and methane hydrates

Outside North America, shale gas has not yet been

produced commercially

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SHALE GAS TECHNOLOGY

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Advantages Disadvantages

Adding significant quantities ofnatural gas to the globalresource base

Shorter time to first productioncompared to conventional gas

Using cleaner energy resource Broader use of new drilling

technologies around the world

Improved security of supply forgas- importing countries.

Uncertainty over costs andaffordability

Doubts about theenvironmental acceptability ofthe production technology

Unclear rates of decline whichmay materially impact reserve

estimates Local opposition to shale gas

development

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ENVIRONMENTAL IMPACT

Issues such as land use, water and air pollutioncaused by the extraction and processing of shalegas

It require large quantities of water for hydraulicfracturing process.

Combustion and thermal processing generateharmful atmospheric emissions, including carbon

dioxideCO2 is also released by the decomposition of the

carbonate minerals in the extraction process

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THE INDIAN SCENARIO

India has huge shale deposits across the Gangetic plain,Assam, Gujarat, Rajasthan, and many coastal areas

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THE INDIAN SCENARIO(cont...)

In order to develop shale gas as a viable option forIndias energy self-sufficiency the following issuesneed to be addressed:

Experience with technologies for shale gas extractioni.e. horizontal drilling and hydraulic fracturing.

A favourable and investor friendly environment forshale gas development, like policy support from the

government and other such factors.Environmental and water management aspects of

shale gas development.

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RECENT DEVELOPEMNET

A number of Indian oil and gas companies haveattempted to acquire shale gas assets abroad.

Reliance Industries Limited (RIL) has taken the lead

and acquired significant stakes in three shale gasacreages in the US.

Also, ONGC has commissioned global technologymajor Schlumberger to carry out pilot projects.

Recently, Schlumberger has come out with theresults and has made an initial gas-in-place estimateof 300-2,100 trillion cubic feet (tcf) in Indian shalegas basins.

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COAL BED METHANE

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COAL BED METHANE

Standard natural gas:CH4

Methane forms alongwith coal

It is held in the cleatswith the coal

Substantial waterpressure needed to

keep methane in thecoal: 400 to 1000 ft ?

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How is CBM Removed?

CBM is removed byremoving water pressure

which holds CBM in place.

Methane that was held in placeby water pressure tends to followthe water as it is pumped to thesurface, where it is captured andtransported through pipelines.Fracking fluids are often firstinjected into the coal bed to

break up the coal, making iteasier for the water and gas toflow to the surface.

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ENVIRONMENTAL IMPACTS

Air quality benefits arise from

(1) Substituting clean-burning methane for dirtier fuels

(2) the burning, rather than venting into the atmosphere,

of coalbed methane released as a result of

coal mining activities

However, disposal of the large volumes of hazardous

water that are produced from CBM wells isenvironmentally unacceptable

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GLOBAL RESERVES

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INDIAN SCENARIO

CBM policy for exploration & production of CBM wasformulated by the Government in July 1997 forcarrying out CBM exploration activity in the country.

Having the 3rd largest proven coal reserves and being

the 4th largest coal producer in the world, India holdssignificant prospects for commercial recovery of CBM.

CBM resource has been estimated to be around 4.6TCM.

A total of 26 CBM blocks and 13600 Sq Km area havebeen awarded in three rounds of CBM held so far.

R t D l t A d f Bl k

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Recent Developments-Award of BlocksUnder CBM - IV bidding round

S.NO. Block Location Awardees

1. RM(E)-CBM-2008/IV Jharkhand Essar Oil Limited

2. TL-CBM-2008/IV Orissa Essar Oil Limited

3. IB-CBM-2008/IV Orissa Essar Oil Limited

4. SP(NE)-CBM-2008/IV Madhya Pradesh &Chhattisgarh Essar Oil Limited

5. ST-CBM-2008/IV Madhya PradeshArrow Energy-TATAPower

6. AS-CBM-2008/IV AssamArrow Energy- OilIndia Ltd

7. MG-CBM-2008/IV Tamil Nadu GEECL

The awarded blocks covering an area of 3727 sq.km.

The estimated CBM resources of these 7 Blocksis about 330 BCM

Source-DGH

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BIBLIOGRAPHY

www.wikipedia.org

www.dghindia.org

www.deloitte.com/in

www.worldenergy.orgwww.geology.com

www.eia.gov

www.opec.org

http://www.wikipedia.org/http://www.dghindia.org/http://www.deloitte.com/inhttp://www.worldenergy.org/http://www.geology.com/http://www.eia.gov/http://www.opep.org/http://www.opep.org/http://www.eia.gov/http://www.geology.com/http://www.worldenergy.org/http://www.deloitte.com/inhttp://www.dghindia.org/http://www.wikipedia.org/

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