Geology and Petroleum:

Applications of Earth Science in the Oil

and Gas Industry

Dr. G. Michael Grammer

Michigan Geological Repository for
R
Research
h and
d Education
Ed
ti (MGRRE)
Western Michigan University

What do Geologists Do?

Igneous
Metamorphic
M t
hi
Sedimentary

What do Geologists
g
Do?

Economic Geologists
Engineering Geologists
Environmental Geologists
Geochemists
G
Geochronologists
h
l i t
Geomorphologists
Geophysicists
y
Glacial Geologists
Hydrogeologists
Hydrologists
Marine Geologists
Mineralogists

Geological Oceanographers
Paleoecologists
Paleontologists
Petroleum Geologists
Petrologists
Planetary Geologists
Sedimentologists
g
Soil Scientists
Seismologists
Stratigraphers
Structural Geologists
Volcanologists

History of Petroleum
First Use: Egyptians: oil to preserve mummies
Chinese: natural gas for fuel
Babylonians: oil to seal walls and pave streets
Americans: tar to seal canoes
First Drilling: Chinese using bamboo: to 800 in 347 AD
Americans using cable tool: to 70 in 1859 AD
First Product: Kerosene for lamps
Gasoline was unwanted by
by--product
Demand Industrial Revolution
Increase:
- Internal Combustion Engine (1885)
- Global
Gl b l E
Economic
i G
Growth
th

What is Petroleum?
Petroleum:

a natural yellow
yellow--to
to--black flammable
liquid hydrocarbon found beneath
th earths
the
th surface
f

y
an organic
g
compound
p
made up
p
Hydrocarbon:
of carbon and hydrogen atoms

The Goal - Black Gold

Petroleum Supplies our Energy Needs
Light Texas Crude

Heavy Texas Crude

Palo Pinto Field

North Texas

Humble Oil Field

Southwest Texas

Misc. Facts about Oil

Oil provides 40% of energy Americans consume and
97% of transportation fuels
Recoverable Reserves: est. 70+ years at current rates
of consumption
U.S. Oil Industry employs nearly 1.5 million people
Motorists pa
pay an a
average
erage of 42
42.4
4 cents/gal in gasoline
taxes
Takes
T k 20 new cars tto produce
d
ttailpipe
il i pollution
ll ti off one
new car in the 1960s

Petroleum Products
A Barrel of Crude Oil Provides:
Gasoline - 19.5
19 5 gallons

One Barrel =
42 gallons

Fuel Oil - 9.2 gallons

Jet Fuel - 4.1 gallons
Asphalt - 2.3 gallons
Kerosene - 0.2 gallons
Lubricants - 0.5 gallons
Petrochemicals,
other products
prod cts - 6.2
6 2 gallons
American Petroleum Institute, 1999

Refining
g Petroleum

Fuel Gas
Gasoline
Kerosene
Jet Fuel
Heating
Oil

Crude Oil
Vapor

Liquid
Li
id C
Crude
d Oil
after World Book Encyclopedia

Lubricating
Oil
Residual Products
Asphalt,
Heavy Fuel Oil 24803

Petrochemical Products
More Than 3,000 Products

Detergents - Cosmetics
Fertilizers - Weed Killers
Medicine
M di i - Antiseptics
A ti
ti - Anesthetics
A
th ti
Plastics (CDs, furniture) - Synthetic Fibers
Synthetic Rubber
Rust Preventatives
Liquid Petroleum Gas

American Petroleum Institute, 1999

U. S. Energy
gy Demands
Consumption:

Petroleum
Natural Gas
Coal
Hydroelectric
Nuclear

37%
30%
22%
4%
7%

United States Petroleum Imports

1950s
1960s
1970s
1980s
1990s
1990 s
May 2005

15%
20%
36%
42%
50%
67%
American Petroleum Institute, 2006

U. S. Energy
gy Demands (2006)
(
)

Total import of Crude: 14,331,000 per day

Total % of imports: May 2006 = 71.8%
Mayy 2005 = 67%
Natural Gas: U.S. used 22.5 trillion ft3 in 2000
Approx.
Approx 85% of natural gas used is produced in
U.S., majority of rest comes from Canada

U S
U.
S. Demand for Electricity
Source

Coal: 55%
Nuclear: 21%
Hydroelectric: 9%
Natural Gas: 9%
Refined Petroleum: 3.5%
Other (renewable biomass,
biomass solar,wind,
solar wind
geothermal): 0.5%

Worldwide Demand for Energy

gy
Source (currently)

Oil and Natural Gas: 61%

Coal: 26%
Hydroelectric: 7%
Uranium: 6%

Population--Driven Energy Demand

Population
World Primary Energy
Consumption

World Population
((Millions))

(Quadrillion BTU)

10,000

500

8,000
6 000
6,000

400

4,000
300

2,000
0
1500

1700

1900

2100

1975

1985 1995

2005 2015

AAPG Explorer, 8/95

Worldwide Demand for Energy

Worldwide Population (1995): 5.6 Billion
Since 1950 - population doubled
between 1950 and 2010 - population will triple
(> 8 billion today)
Energy Consumption from 19831983-1992 - rose 22%
1980
1980--2010 - Energy
E
Consumption
C
ti expected
t d tto rise
i 66%

Worldwide Demand for Energy

Consumption Increases (expected)
Crude Oil
from 19801980-2010: 40% increase
from
f
1992-2010:
19922010 30% iincrease
from 66.7 MMBOPD to 86.5 MMBOPD

Natural Gas
from 19801980-2010: 100% increase
from 19921992-2010: 53% increase

Worldwide Demand for Energy

Consumption Increases (expected)
Coal
from 19801980-2010: 50% increase
from 19921992-2010: 32% increase
Hydroelectric
H d
l ti
U.S. limited growth 1) major environmental concerns;
2) political - land use and water rights
primary growth e.g. China, Brazil, Turkey
Nuclear
not expected to increase
retirement of old plants
p
limited new construction (regulatory and public)

Gasoline Price: Cost vs. Tax

Per Gallon as of July 10, 2006 in U.S. Dollars

Country
Netherlands
UK1
Italy1
France1
Germany1
Japan1
S i 1
Spain
Canada1
USA2
Venezuela

City

Pump
Price

Amsterdam
London
Milan
Paris
Frankfurt
Tokyo
Madrid
M d id
Calgary
Kalamazoo
Caracas

7.13
5 99
5.99
5.96
5.57
5.54
4.55
4 24
4.24
4.10
2 94
2.94
0.12

Oil and Gas Production

Reservoir Types
Sandstones
60%

Carbonates
40%

Oil
Carbonates
30%

Sandstones
70%

Gas

The Origin of Petroleum

Organic-rich
OrganicSource Rock

Thermally Matured
Organic Matter

Oil

Source Rock for Petroleum

OrganicRich

Thin
Laminae

1 Inch

Measured Values
Total
Organic
Carbon

Hydrogen
Index

3.39

378

In-Place
Petroleum
S1

Pyrolytically
Generated
Petroleum
S2

2.24

12.80

LOMPOC Quarry Sample

Monterey Formation, CA

Types of Petroleum
Oil and gas are formed by the thermal
cracking
ki off organic
i compounds
d b
buried
i d iin
fine--grained rocks.
fine
Algae
g = Hydrogen
y g rich = Oil
Oil--p
prone
Wood = Hydrogen
y g p
poor = Gas
Gas--p
prone

Petroleum System Elements

Source Rock - A rock with abundant hydrocarbonhydrocarbon-prone
organic matter
Reservoir Rock - A rock in which oil and gas accumulates:
- Porosity - space between rock grains in which oil
accumulates
- Permeability - passage
passage--ways between pores through
which oil and gas moves
Seal
S lR
Rock
k - A rockk through
th
h which
hi h oilil and
d gas cannott move
effectively (such as mudstone and claystone)
Migration Route - Avenues in rock through which oil and
gas moves from source rock to trap
Trap - The structural and stratigraphic configuration that
focuses oil and gas into an accumulation

Petroleum System Processes

Gas
Cap
Oil

Accumulation
Entrapment

Water

Seal Rock
Reservoir
Rock

Migration
120 F

Source Rock

Generation

350 F
2480

Reservoir Sandstone
Good Porosity = Lots of Space for Petroleum

Pores
(blue)

Anticlinal Theory
Petroleum Accumulates in Structural Closure

Gas
Oil
Water

Directional Drilling Avoids Surface Hazards

Gas
Oil
Water

American Petroleum Institute, 1986

Global
Oil
and Gas Fields
G
E

Gas
Oil

Projected World Energy Supplies

100

80

Solar, Wind
Geothermal

World Energy Demand

Coal
Natural
N
t l
Gas

Crude
C d Oil

20

1900

Nuclear Electric

Decre
easing
Fossil Fuels

Billion
Barrels
of Oil
Equivalent 60
per
p Year
(GBOE)
40

100 BILLION
BARRELS

Hydroelectric

1920

1940

1960

1980

2000

2020

2040

New
w Techno
ologies

1993

Careers in
Oil & Gas
Remain Important

2060

2080

3000
024839-2
after Edwards,
24929
AAPG 8/97

Largest Hydrocarbon Basins

by Ultimate Potential

Geologic
g
Mapping and Sampling

JMA

Gravity

Seismic Reflection

Magnetics

Geologic Mapping

American Petroleum Institute,

1986

Stratigraphy:

Depositional Systems
Sequence Stratigraphy
Petrophysics and Paleontology

Understanding the processes creating sedimentary units

MESOZOIC
&
CENOZOIC

Clastic Sedimentary

Record missing due to

erosion:
Must reconstruct history
from regional data

Rock Physics

PE
ERMIAN

L
Upper
Permian

Sedimentary Modeling

PENN.

MISS.

Forward
Modeling

CARBONIFER
ROUS

M-U
Pennsylvanian

C b
Carbonate
t
Analogues

Kerans, 1998

Importance
of Combining
Outcrop and
Modern Analogs

Grammer, 2003
AAPG Distinguished Lecturer

Seismic Imaging
3D Marine Data Acquisition
Silicon Graphics

Seismic Imaging of Anticline

Recording Truck

Vibrator Truck
(Energy Source)

p
Geophone
(Receivers)

Returning
Sound Waves

American Petroleum Institute, 1986

Seismic Image of Anticline

Milliseconds

1000
000

2000

3000
1 km

Gasoline prices and Hurricane Katrina

(Oct. 13, 2005)
Atlanta:
Atl t $5.70/gallon
$5 70/ ll yesterday
t d
K-zoo: $3.29/gallon this morning

Why?

Supply of Crude Oil

561 rigs/platforms in GOM evacuated
20 rigs/platforms missing
GOM responsible
p
for >25% of U.S. production
p
of crude oil (91% 0f GOM production shut down)
Port Fouchon and LA Offshore Port
shut down (handle >20% of crude imported)

Supply of Refined Products

8 refineries shut down
down, others operating at
fraction of capacity
Strategic Petroleum Reserve 700 MMBO
in 4 salt caverns in LA and TX

Supply
Supp
y of
o Refined
e ed Products
oducts
Explorer Pipeline:
Pipeline: (shut down)
1400 miles long,
15,000
15 000 gallons
ll
per minute
i t
72 kinds of gasoline, diesel, and jet fuel to
16 states in Midwest

Colonial Pipeline:
Pipeline: (25% capacity)
5500 miles long
100 million gallons per day
12 States and D.C. in southeast and east

Geology in Society
Resource Assessment:

Fossil Fuels
Water Supplies
Stratigraphic Minerals

Environmental Quality:

Water Quality
Waste Management

Catastrophe Management: Volcanoes, Earthquakes,

Landslides, Floods,
Tsunamis, Bolide Impacts
Cli t Ch
Climate
Change:

D
Documentation,
t ti
P
Prediction
di ti
Coastal Management

Useful Links