Oil patch intro for new employees

Introduction to the Oil and Gas Industry
(The “Oil Patch”)
For „Executives‟ and/or New Employees
Glenn R. Power, Senior Geologist
1

Many „executive‟ and „upper-level‟ staff in the Oil and
Gas Industry have backgrounds in Business
Administration, Finance, Law, Accounting, and fields
of study other than Geoscience and Engineering.
Executive staff with a background in Engineering
and/or Geoscience is still quite
common, nonetheless, there are still high numbers of
executive staff who could benefit from a broad
overview of basic Geoscience, especially as it
pertains to the Oil and Gas Industry.
Purpose
2

The broad overview contained in this PowerPoint
presentation contains sufficient technical detail for
the executive staff who lack a background in
Geoscience and/or Engineering and/or for new
employees to the industry.
These presentation materials help to „familiarize‟
those persons with the many aspects of the Oil and
Gas Industry, especially with the „catch words‟ that
they will frequently hear in the numerous technical
meetings and presentations which they must attend.
Purpose
3

Fossil Fuel:
Where does oil and gas come from?
Scale:
What is big? What is small?
Plate Tectonics:
What does it take to „move a mountain‟?
Geological Time Scale:
A thousand years is like a day.
Depositional Environments:
How are rocks formed?
Well Correlations:
Each new well is another piece of the puzzle.
Well data is how we complete the puzzle.
Drilling and Completions:
How do we find and produce oil and gas?
Topics of this Presentation
4

One of the most difficult concepts that „non-technical‟ personnel have
with comprehending aspects of the oil and gas industry is the time
scale involved.
Oil and gas is frequently found in sandstone reservoirs that were
once in a beach environment, at or near sea-level.
Typically, over periods of millions of years these „beach sands‟ get
„buried‟ deep within the earth, frequently to depths of many
thousands of meters.
The geologic processes which result in this „burial‟ can also result in
the „building‟ or „uplift‟ of mountains.
Therefore, it is not only necessary to address the time scale
involved, but the notion of scale itself, from the tiniest microscopic
features to the largest mountains.
5

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
6

7
Exploration, discovery, delineation and
production…
Familiar words in the “Oil Patch”…
But where does oil and gas come from?

9
For the most part, ALL of Earth‟s
energy is provided by our Sun.
Plants harness that energy and
produce sugars and fats that are
consumed as food by animals.
This food can be considered as
„energy packets‟ and when plants
and animals die this energy gets
„trapped‟ as organic matter.
The organic matter that doesn‟t get
consumed gets buried in
lakes, swamps and oceans along
with sediments, grains of „dirt‟
(mud, clay, silt and sand).
Over vast amounts of time this
organic matter (trapped in layers of
mud) gets buried deeper and
deeper into the earth. It forms
layers of rock which are known as
“source rock” from which oil and
gas are generated.

15
The plants and „critters‟ that
make up the organic matter, the
„storehouses of energy‟, can not
be seen with the „naked eye‟.
Microscopes allow us to see their
incredible structure.

19
Algae can reproduce in astounding numbers
in lakes and seas giving rise to what is
referred to as an „algal bloom‟.
Green algae blooms in lakes is often referred
to as “pond scum” and Red algae blooms in
oceans is often referred to as “Red tides”.
In a single season some algal blooms can
cover hundreds of square miles. Multiply that
by hundreds and even thousands of years!

21
Algal „blooms‟ can be seen by satellite.
This one (off the coast of SW England)
covers an area in excess of hundreds of
square kilometers! The inset white line is
80km in length.
This is a singular occurrence. Imagine the
volume of algae in a hundred years, a
thousand, a million or more!
That‟s an incredible amount of organic
matter which can eventually be converted
into oil and gas.

22
„Fossil fuel‟ is a “non-renewable”
energy source with a finite supply.
Despite decades of „warnings‟ and
„cautions‟ to reduce consumption
mankind‟s insatiable appetite for
energy continues to grow.

23
As “conventional oil” reserves diminish modern technology is being challenged
to replace those reserves with “renewable energy”. One potential source is the
growth of algae on an industrial scale to generate biodiesel.

24
Another potential source of “unconventional” oil and gas reserves is the
“Shale Plays”. What was once considered “source rock” with little to no
permeability is now being drilled and fractured to produce gas and oil.

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
25

Sediments (sand, silt and clay) form the rock layers
that we frequently see in hillsides and mountains
(outcrops).
The „Stacking Pattern‟ and „layering‟ of sediments
can be seen in the next couple of slides in „small‟
scale by way of the layers of beach sands and on a
much „larger‟ scale in whole mountains (especially
evident in places like the Grand Canyon).
Geoscientists must always be aware of the scale of
the data-sets that they are working with.
26

27
Before we consider some of the „bigger‟
concerns of geology, let us look at some of the
„smaller‟ things.
Most people are familiar with large fossils such
as dinosaur bones but the vast majority of „fossil
remains‟ can only be seen with a microscope.
The following slides depict some of these
differences in scale (size).

In the absence of any type of scale these two
shark‟s teeth appear to be the same size.
29

A penny provides a relevant scale. 30

There is a shark‟s tooth on the penny. 31

There is a shark‟s tooth on the penny. 32

These two pictures are of the same tooth. The
one on the penny (left) has been „distorted‟ due
to „resizing‟ from the previous photo.
33

36
Next, we will look at rock samples.
Patterns that can be seen in rock samples on a
„small‟ scale are also present on a „large‟ scale.
The following slides depict some of these
differences in scale (size).

Some „lines‟ have been superimposed over the Terra Nova
core sample to highlight the natural layering or „lineations‟
that are present but a little less „obvious‟ from the photo. 38

It is difficult to see any „parallel layering‟ or „lineations‟ on a
cylindrical core.
The obvious parallel layers of a „slabbed‟ sandstone core
(from the Hibernia Field) have been superimposed over
the cylindrical core photo (which is the same size) to help
further illustrate differences in scale in the following slides.
39

Sands found on a beach show layering. That layering is also seen
in the “core” sample from the Hibernia reservoir (taken from more
than two miles below the seafloor). Those sands were originally
formed in a beach environment much like this one. 40

That layering seen in the Hibernia “core” sample can also be seen on a much
larger scale over vast distances in hills and mountains. Studies of “outcrops”
help geologists determine where to look for oil and gas in the “subsurface”
(below ground). 41

This should be a familiar
scene. Note the
„lineations‟ in the
“outcrop” of Signal Hill.
(St. John‟s, Newfoundland)
It is evident that the
„layering‟ of the “beds” is
very steeply “dipping”
and nearly vertical.
Of course, these beds
would have originally
been laid down in a near
horizontal position.
42

43
This should be a familiar
scene. Note the
„lineations‟ in the
“outcrop” of Signal Hill.
(St. John‟s, Newfoundland)
It is evident that the
„layering‟ of the “beds” is
very steeply “dipping”
and nearly vertical.
Of course, these beds
would have originally
been laid down in a near
horizontal position.

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
46

Most people have heard of “global warming” and
are aware that sea-level is rising around the globe.
In geologic time, sea-level is constantly rising and
falling and will continue to do so for millions of years
to come (more on this later).
Geologists have been able to determine how sea-
level is able to change with time and how the
„layers‟ of rock or “beds” can get moved from
horizontal to near vertical positions.
47

50
As the detail of the mapping progressed the apparent „fit‟ seemed
more compelling.

56
The „continental drift‟ of
Europe and Africa away
from North and South
America started about
220 million years ago.
The “Mid Atlantic Rift” is
making new oceanic
crust and forcing the
Americas away from
Europe and Africa. There
is another “spreading
center” in the Pacific.
The west coasts of North
and South America are
colliding with the Pacific
Ocean plates. This
„collision‟ is causing the
Rocky Mountains and the
Andes to continue to
rise, albeit by only
millimeters per year.

57
The „continental drift‟ of
Europe and Africa away
from North and South
America started about
220 million years ago.
The “Mid Atlantic Rift” is
making new oceanic
crust and forcing the
Americas away from
Europe and Africa. There
is another “spreading
center” in the Pacific.
The west coasts of North
and South America are
colliding with the Pacific
Ocean plates. This
„collision‟ is causing the
Rocky Mountains and the
Andes to continue to
rise, albeit by only
millimeters per year.

60
Present Day: Satellite imagery shows the „true fit‟. The continents
have separated along a line that is known as the “Mid Atlantic Ridge”.

61
Present Day: Satellite imagery shows the „true fit‟. The continents
have separated along a line that is known as the “Mid Atlantic Ridge”.

62
The very visible E-W lineations are known as “transform faults”. The N-S
lineations are part of the “Mid-Atlantic Ridge” or “spreading center”. The
ocean floor that separates South America from Africa is „new‟ relative to the
continents themselves. Plate Tectonics helps to explain how this happened.

The very visible E-W lineations are known as “transform faults”. The N-S
lineations are part of the “Mid-Atlantic Ridge” or “spreading center”. The
ocean floor that separates South America from Africa is „new‟ relative to the
continents themselves. Plate Tectonics helps to explain how this happened. 63

64
Close-up of the E-W lineations or “transform faults”. The N-S lineations form
the mid-Atlantic ridge which is a “spreading center” where molten lava makes its
way to the surface and forms new oceanic crust.

68
Most people find it difficult to think in terms of millions and
hundreds of millions of years but geoscientists have to think
that way.
Very small movements (millimeters per year) over very long
times result in mountains being raised out of the sea and worn
down again to be deposited back into the sea. This is known
as the “Rock Cycle”.
The following slides are called Plate Reconstructions.
Geologists are able to „reconstruct‟ how the Earth would have
looked with the help of seismic images and the data gathered
from the hundreds of thousands of wells that have been
drilled into the earth in the search for oil and gas.

69
Triassic Period approximately 220 million years ago .
All of the world‟s continents were joined into one giant continent called “Pangaea”. The light
blue areas are „shallow seas‟ where sediment is being deposited along shorelines and life is
abundant. Many of these areas are locations of present day oil and gas reservoirs where
hundreds and even thousands of wells have been drilled and which have helped us piece
together these “plate reconstructions”

70
Jurassic Period approximately 150 million years ago.
Seventy million years have passed since the previous „snapshot‟. South America and Africa
are still „attached‟ but they are becoming separated from North America. The area within the
red rectangle contains the Jeanne d‟Arc basin. Huge volumes of coarse sand are being
deposited in what will become the Terra Nova and Hebron Oilfields.

71
Late Cretaceous approximately 90 million years ago.
Another 60 million years have passed since the last „snapshot‟. The present day configuration
of the continents is becoming more obvious. The pale blue areas represent shallow seas and
are spread all over North America, Africa and Europe. In the Jeanne d‟Arc basin reservoir
sands of the Hibernia, White Rose, and numerous other fields are being deposited.

73
Tertiary (Paleogene) approximately 50 million years ago.
The pattern of the present day continents is more obvious now. The west coast of North and
South America is colliding with the Pacific plate which has closed the interior sea of Western
Canada and the United States and begun to form the Rocky Mountains and the Andes.
From the northern most tip of Alaska to the southern most tip of Argentina what was once
shoreline and sea-floor sediments is being lifted up into a vast mountain chain.

74
Tertiary (Recent) approximately 20 million years ago.
The pattern of the continents looks very familiar now, Most of the shallow „inter-continental‟
seas have disappeared. Vast amounts of sediment are being deposited along the coastlines of
the globe, pushing the previous sediments deeper into the earth. Millions of years of build up
of organic matter is now being „cooked‟ and turned into oil and gas. Pressure squeezes the
hydrocarbons out of the “source rocks” into the reservoir rocks that overlie them.

76
Still not convinced that this is possible?
That whole continents can move thousands of kilometers
away from each other.
That beach sands could be „buried‟ thousands of meters
below the sea floor and then be lifted thousands of
meters above sea-level (like Mt. Everest).
The „key‟ that makes all this possible is the
vast, vast, amount of time that has passed since the
Earth was first formed… approximately 4.5 billion years
ago.
That‟s 4,500 million years ago.

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
77

78
We will soon take a look at the Geological Time Scale.
For now, let us consider the thickness of a single piece of
paper… (approximately one tenth of one millimeter).
Then think of a „package‟ of paper that contains 500
sheets of paper… (50 millimeters or 5 centimeters).
A stack of twenty packages of paper contains 10,000
sheets of paper… (1000 millimeters, or 1 meter).
A six foot tall person is approximately 2 meters tall,
20,000 sheets of paper.

Rates of Deposition (burial) or Erosion ( or „uplift‟).
You could bury the world‟s tallest buildings (or erode them) in as little as 4 to 5 million years
(at a rate of one sheet per year).
Every ten million years you could deposit or erode a full kilometer of sediment.
Ten million years seems like a vast amount of time (and it is).
Yet the youngest oil-producing formation in the Hibernia oilfield (Ben Nevis)
…is approximately 100 million years old.
The Ben Nevis is „buried‟ to an average depth of about three kilometers.
It could have been buried to a depth of 10 kilometers in that time (at one sheet per year).
The oil-producing horizons in the Terra Nova field are approximately 150 million years old!
So you see, even at what seems like an infinitesimally small rate of either „erosion, burial or
uplift‟ there is more than enough time available to build a mountain and tear it down again!
82

These mountains resulted from the „collision‟ of the Indian Plate a mere
50 million years ago. So these mountains were “uplifted” at a rate or
approximately TWO sheets per year! 84

The formations that produce oil and gas in the
Jeanne d‟Arc Basin were once deposited at or near
sea-level and have since been buried deeply into the
earth.
We can determine the ages or “Geological Time
Periods” that those rocks were deposited in from a
number of different methods.
Radiometric dating and presence and type of fossils
are the most common methods,
85

88
This portion is enlarged on the next slide.

In geological time sea-level is constantly changing (rising
and falling).
There have been periods of extremely „high‟ sea-level
when vast areas of the continents were covered by
oceans and „inland seas‟.
One can look at the records of sea-level rise and fall in
relatively „recent‟ terms (the past 100+ years).
In terms of the last “Ice Age” (~15,000 years ago).
Or records throughout “Geological Time”
(4.5 billion years total, with 500+ million years of life).
91

Records for the past 100+ years show that sea-level
has risen by 20cm (200mm) or approximately 2mm
per year.
Using our previous „stacked paper‟ analogy, that is
2,000 sheets of paper or approximately 16 sheets per
year.
However, sea-level has been rising „rapidly‟ since the
last „glacial melt‟ approximately 15,000 years ago.
93

15,000 years ago during the last “Ice Age” sea-level
was 100 meters lower than it is today because a lot of
the Earth‟s water was frozen as ice in glaciers.
Since that time sea-level has risen by 100m.
(66 sheets per year).
In “Geological Time” since there has been „abundant‟
life in the oceans (500+ million years ago) sea-level
has frequently been hundreds of meters higher than
present day. Sea-level has also been very much lower
than present day.
95

The continents have moved due to Plate Tectonics.
Mountains have been raised and then leveled by
weathering and erosion.
The rock fragments from erosion of the mountains
make their way to the sea and get deposited once
again.
Sea-level constantly rising and falling results in
beaches being „swallowed‟ by the sea.
These are on-going processes of the “Rock Cycle”.
98

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
99

101
Mountains get eroded, forming sediment (gravel, sand, silt and mud). Rivers move that
sediment into lakes and oceans. Waves and tides continue to move that sediment
around. Incredible volumes of organic matter „rain down‟ to the sea floor and get
deposited together with the sand, silt and mud. Sediments and organic matter get buried
deeper and deeper over time, eventually forming source rocks and reservoirs.

106Micro-Environments of a Clastic Shoreline

115
Oil and Gas reservoirs occur in sediments
that were deposited and buried in „ancient‟
depositional environments.
The following slides show these
environments in „modern‟ settings.
The current Hibernia, Terra Nova, White
Rose and Hebron Fields that are buried
thousands of meters below the sea-floor
were once much like these environments…
at or near sea-level.

117
Mountainous „highlands‟ with
alluvial fans at the base and
terraced sediments deposited
by rivers and streams.
Rivers redistribute the
sediment and carve river
valleys that form terraces
(„steps‟) from „earlier‟ incised
valleys.
The eroded rock and sediment
spills out onto floodplains. In
addition to coarse grained
sediments there are fine
grained sediment (clays and
muds) that support vegetation.
This type of environment is
ideal for farmland.

118
Braided fluvial channels in
an incised valley. Note the
„rocky outcrop‟ along the
valley edges.
There is very little vegetation
within the river valley which is
typically evidence of high
rates of water flow and
relatively steep gradients. The
fertile farmland in the
background contains muds
and clays from times when
the river overflows its banks
unto the „floodplain’.

121
Where rivers meet the sea you
frequently find barrier Islands
with sandy beaches, tidal
inlets and muddy lagoons.
These environments are great
places to live for a time but
they are constantly changing
due to waves and tides and as
sea level rises and falls
through time.
Shoreline erosion and
migration is constant despite
man‟s ceaseless efforts to
prevent such change.

126
Where fluvial (river) systems
merge with open ocean
(marine) systems and
sedimentation rates are high
deltas may form.
This delta has multiple
distributary channels that
„fan out‟ and distribute the
sediment into the nearshore
environment. These deposits
are constantly modified by
waves and tides.
„Modern‟ deltas have played
a very important role in the
history of humans on this
planet. „Ancient‟ deltas are
frequently targeted for their
oil and gas reserves.

127
The Nile delta (shown here)
clearly shows the importance
of fresh water river systems for
agriculture.
Arid conditions exist
everywhere within only a very
short distance from the „life
sustaining‟ waters of the Nile.
This is a „modern‟ delta.
„Ancient‟ deltas are frequently
targeted for their excellent oil
and gas reservoir qualities.

129
Sand, silt and clay is not only transported
and deposited by water.
The wind can, and does, also play a role…

In arid, dry, desert environments, the wind is constantly reshaping the
landscape. Sand, silt and clay are moved about in enormous volumes
in „storms‟ that are very common in these types of environments. 130

The sheer scale of these „sandstorms‟ is almost incomprehensible to
those of us who have not personally experienced them. 131

Sands, silts and clays that are blown about in storms such as this are
lifted high into the atmosphere and are blown all the way from Africa to
South America and even all the way to North America. 132

133
Satellite imaging showing „dust‟ being blown from Africa, heading west
across the Atlantic ocean to South America and beyond.
Africa

135
From „modern‟ depositional environments
to „ancient‟ depositional environments.
The following slides illustrate the types of
depositional environments that contribute to
the reservoirs found in the Jeanne d‟Arc
Basin (East Coast Canada).

140
We have seen how mountains are „uplifted‟ from the
sea and then eroded and deposited back into the sea.
The sand, silt and clay, the “weathering products”
are moved from the „highlands‟ to the ocean in a
continuous process called the “Rock Cycle”.
These „rock fragments‟ form the “source rocks” that
oil and gas is formed in and they form the “reservoir
rocks” that oil and gas is produced from.

142
The amount of porosity and
permeability in reservoir rocks is often a
function of the „parent rocks‟ that the
grains are eroded from.
The distance that those grains travel
before they are deposited will also affect
the grain size and shape and degree of
sorting; all are factors which affect the
porosity and permeability.
Additionally, sand grains that are
deposited in a beach environment will
likely be reworked over and over by
wave action and tides. This results in
angular grains becoming rounded, clays
are removed and the sorting is
increased.
Geologists need to study the source of
the sediment and the environments of
deposition in order help them predict
where the best reservoirs can be found.

Oil comes out of the ground from microscopic holes in the rock
called “pores” or “pore spaces”. The measure of the amount of
pore space relative to the amount of solid rock is called
porosity and it is expressed as a percentage. Some estimate
of the porosity is essential to determine how much oil there
could be in a potential reservoir (the size of the resource).
The next essential component of a reservoir is how well
connected those pore spaces are and how well oil or gas can
flow through the rock. This is called permeability and is
typically measured in units of millidarceys. The higher the
permeability of the rock the better the flow rate and the more
oil or gas you can produce (the larger the reserves).
Key Reservoir Rock Properties
144

146
In a later section we will be shown more detail on HOW a well is drilled.
At the moment it is sufficient to say that a drilling rig uses a “drill bit” to
drill down into the solid rock layers.
The drill bit breaks up the rock layers into small pieces called
“cuttings”. The geologist, or „mudlogging geologist‟ at the “well-site”
examines these cuttings under a microscope to determine what is the
rock type (sandstone, shale, limestone) and whether or not there is
any porosity and permeability.
The geologist also looks at these cuttings for their size (fine or coarse)
and shape (angular or round) and other parameters that help to
determine the “environment of deposition” of the sediments that
make up the „rock layers‟.

The geologist attempts to determine the „properties‟ of the
cuttings, their size and shape and degree of sorting.
These properties affect the reservoir porosity and permeability and
ultimately, how much oil and gas you can produce from the reservoir.
151

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
155

159
The Porosity log indicates reservoir.
Non-reservoir quality
Reservoir quality

Wireline log measurements reveal a great deal of
information about the rock types and potential oil and
gas reservoirs.
Core samples are frequently taken in the „reservoir
section‟ of a well. Many additional measurements are
then obtained and are compared to their „wireline
signature‟.
These comparisons can reveal a great deal of
information from other wells that do not have any core
samples.
165

167
Note similarity
with the E Sand in
L-98 9

169
Here are four wells showing the GR and Res logs.
See any patterns? Geologists “correlate” wells by „connecting‟
layers that look similar.

170
Start the “correlation” by adding some straight lines to connect the
„wireline signatures‟ (remember the „layering‟ from previous slides).

171
Also remember that not all „beds‟ are horizontal. Some have been
tilted, faulted and even folded.

172
Also remember that not all „beds‟ are horizontal. Some have been
tilted, faulted and even folded.

173
And some more lines… (correlations).

174
And a few more „lines‟…
This shows „flat lying‟ beds on top of „tilted‟ (and eroded) beds.

175
You can even add a little color to complete the „picture‟.
Accurate “correlations” help to determine the „best‟ places to drill and
find more oil and gas deposits.

176
One last example… Do you see any patterns?

177
If we start “correlating” with straight lines we will see this pattern
evolve…

178
A geologist might recognize that „curved lines‟ would be a better „fit‟ in
this “correlation”.

179
This interpretation is of “folded” beds, like the picture in the next slide.

180
Folded beds are a result of Plate Tectonic “compressional forces”.

Fossil Fuel:
Scale:
Plate Tectonics:
Well Correlations:
181

182
How do we determine where to drill for oil?
Data is acquired at every stage of the search for oil and
gas. In the exploration phase seismic is the primary
data set. Seismic surveys are carried out over vast
areas (tens and even hundreds of square kilometers) on
land and at sea.
Seismic provides a basin-wide view of the rocks and
structures beneath the land surface or ocean floor. The
data is necessary to reduce uncertainty and risk and to
help identify locations to drill wells. Without seismic it
would be akin to drilling „blind‟.

183
Early in the “Exploration Phase” seismic acquisition is used to „image‟ the
rocks below the land surface (or below the sea-floor for offshore areas).
The vast majority of the world‟s oil and gas reservoirs are found in „layers‟ of
sedimentary rocks that reflect (and refract) sound waves. The seismic
images are processed and drilling „targets‟ (or prospects) are identified.

184A typical resultant 2D image is shown in the seismic line above.

185
Note: The deeper layers are not continuous; they are „broken‟ or faulted. Faulting
makes it much more difficult to map and produce the oil and gas reservoirs.

187
Multiple 2D seismic lines are processed so that a 3D image
can be generated.

188
3D image of the Hibernia Field. Two wells are displayed. The one on the
left is an „up dip‟ oil producer and the one on the right is a „down dip‟ water
injector. These are referred to as a “producer and injector pair”.

189
3D image of the Hibernia Field with numerous wells displayed. Each new
well enhances the understanding of the field and helps determine where
the next well will be placed to maximize the oil recovery from the Field.

193
7
It is not simply a matter of „digging‟ a hole in the ground
to produce oil and gas. It is a very complicated process
that requires a great deal of technology.
Wells are drilled in stages, one section at a
time, followed by what is called a “casing run” to „line‟
the hole to prevent it from „caving in‟ (and for other
reasons).
The first stage drills the well to a relatively „shallow‟
depth and then emplaces the first “casing string”; this
is called the Conductor Casing.
This is followed by drilling to a „deeper‟ depth and
another “casing run” and so on until the well is drilled to
the Final Total Depth (FTD).

Wells are not only drilled to produce the oil in the
reservoir.
Wells are drilled to inject other fluids into the
reservoir to maintain pressure and increase the
amount of oil that can be produced.
Water and gas are the most common fluid types used
in injection wells.
212

213
There are four components
which must be present for oil
and gas to accumulate in
commercial quantities.
Source: Organic material
(plants and animals) that gets
„cooked‟ as the temperatures
and pressures increase with
burial.
Reservoir: Pore space that
can store or hold the
hydrocarbons.
Seal: Typically very fine
grained, clayey material
(shale) that is impermeable
(fluids cannot move or „flow‟
through it).
Trap: Typically a structural
feature such as a fold or a
fault that isolates and
encloses an oil or gas
reservoir.

214
Hydrocarbons do not
dissolve in water; they are
less dense than water and
(due to buoyancy) will try to
rise to the surface.
Oil and gas will rise through
the rock column until it
reaches an impermeable
layer that it cannot pass
through (a seal). The
hydrocarbons will then
accumulate in the porous
rock layers below the seal
(the reservoir).
IF there is both oil and gas
present in a reservoir the gas
is less dense and will „float‟
on the oil. Oil is less dense
than water and will „float‟ on
the water.
The result is that there will be
distinct „layers‟ in the
reservoir, a “gas cap”, an “oil
leg” and a “water leg”.

215
Hydrocarbons do not
dissolve in water; they are
less dense than water and
(due to buoyancy) will try to
rise to the surface.
Oil and gas will rise through
the rock column until it
reaches an impermeable
layer that it cannot pass
through (a seal). The
hydrocarbons will then
accumulate in the porous
rock layers below the seal
(the reservoir).
IF there is both oil and gas
present in a reservoir the gas
is less dense and will „float‟
on the oil. Oil is less dense
than water and will „float‟ on
the water.
The result is that there will be
distinct „layers‟ in the
reservoir, a “gas cap”, an “oil
leg” and a “water leg”.

216
Multiple wells are drilled into
an oilfield in order to maintain
the pressure and maximize
the amount of hydrocarbons
that can be produced.
Well A penetrates the „water
leg‟; it does not intersect the
gas or oil leg.
Well B penetrates the „water
leg‟ and the „oil leg‟.
Well C penetrates the
„reservoir in the gas, oil and
water legs.
In this scenario, Well B would
be the oil producer and Wells
A and C would be “injection
wells”. Well A would inject
water in the „water leg‟ and
Well C would inject gas into
the „gas cap‟.
A CB

217
Multiple wells are drilled into
an oilfield in order to maintain
the pressure and maximize
the amount of hydrocarbons
that can be produced.
Well A penetrates the „water
leg‟; it does not intersect the
gas or oil leg.
Well B penetrates the „water
leg‟ and the „oil leg‟.
Well C penetrates the
„reservoir in the gas, oil and
water legs.
In this scenario, Well B would
be the oil producer and Wells
A and C would be “injection
wells”. Well A would inject
water in the „water leg‟ and
Well C would inject gas into
the „gas cap‟.
A CB

219
As the oil is produced it needs to be stored and
then transported to market.
In the offshore environment there are many types
of vessels involved with the production, storage
and transportation of oil and gas to markets.

220
The Hibernia Platform is a Gravity Based Structure
(GBS) that is attached to the seafloor. The produced
oil is stored in the „legs‟ till it is offloaded to tankers.

221
Terra Nova and White Rose oil production is from large specialized „ships‟
called FPSO‟s (Floating, Production, Storage and Offloading).

222
Oil is produced from the Husky White Rose Field from the FPSO
(Floating Production Storage and Offloading) vessel the “Sea Rose”.
There is a similar vessel used in production from the Terra Nova Field.

223
In an offshore environment gas is much more difficult to transport than oil.
It is typically shipped via pipeline to a facility on land and may then be
pressurized and liquefied so that it can be transported by sea to markets
that are frequently very remote from where the gas is being produced. This
is a Liquefied Natural Gas tanker (LNG). There is not yet any gas
production from the Newfoundland and Labrador offshore.

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