ASSIGNMENT

Issue/Problems/Challenges of Oil and Gas Production

By:
Name

: Paula Ligia Freitas

Matrix Number

: DJ16170020

Name

: Marcelina Rosalia Ximenes

Matrix Number

: DJ16170014

FACULTY OF ENGINEERING
DIPLOMA OF ENGINEERING
UNIVERSITI MALAYSIA SABAH (UMS)
2016

INTRODUCTION
Impacts from oil and gas production can result from activities that occur during each
project phase: exploration, drilling/development, production, and decommissioning/reclamation.
The major activities that occur during the exploration phase include: (1) seismic surveys and (2)
exploratory well drilling. Field activities that occur during exploration include: Surveying and
mapping surface and subsurface geologic features to identify areas where oil and gas may have
accumulated; Collecting seismic data to evaluate a geologic formation's potential for containing
economically producible quantities of oil and gas and identifying the best location to drill an
exploratory well to test the formation;
Drilling exploration and delineation wells to determine where oil and gas are present and to
measure the area and thickness of the oil- and/or gas-bearing reservoir; Logging and coring wells
to measure permeability, porosity, and other properties of the geologic formation(s) encountered;
and Completing wells deemed capable of producing commercial quantities of hydrocarbons
(well completion is sometimes considered the first stage of the drilling/development phase). In
the case of shale gas wells, perform hydraulic fracturing which involves pumping quantities of
water and proprietary chemicals into horizontal wells in order to increase the permeability of the
rock hosting the gas resources.
To identify potential production areas used geophysical exploration (e.g., seismic tests). Seismic
exploration (the most important tool for discovering oil and gas reserves) involves exploding
dynamite in a hole drilled several hundred feet in the ground, dropping a heavy object from a
truck onto a hard surface such as a paved road, or shaking the ground with a mechanism known
as a vibrasizer. Seismic waves from these procedures travel downward and outward and then
bounce back from subsurface features (e.g., faults, formation boundaries) at different rates and
strengths depending on what underground substances the waves pass through. These waves are
analyzed to determine the location of oil and gas deposits. Coal seems must be at least 20 feet
thick to produce economically viable coal bed methane.
Exploratory drilling is required to verify that there are accumulations of hydrocarbons and that
the site can produce enough oil or gas to make it economically viable to develop. This stage
includes building roads for access to the drilling area; clearing vegetation and leveling the
drilling area; constructing a drill pad and pits to hold water and drilling wastes; and installing the
drill rig and associated engines, pumps and equipment.
To know deeply about issue/problem/challenges in oil and gas production, lets see the following
articles;

Compositional Modelling of the Diffusion Effect on EOR Process in

Fractured Shale Oil Reservoirs by Gas Flooding
Summary
Gas injection is a one method that uses to increase the pressure of reservoir. Mostly gas injection
use in secondary recovery and apply at reservoir sandstone. Gas injection projects are undertaken
when and where there is a readily available supply of gas. This gas supply typically comes from

produced solution gas or gas-cap gas, gas produced from a deeper gas-filled reservoir, or gas
from a relatively close gas field. Such projects take a variety of forms, including the following:
Reinjection of produced gas into existing gas caps overlying producing oil columns. Injection
into oil reservoirs of separated produced gas for pressure maintenance, for gas storage, or as
required by government regulations. Gas injection to prevent migration of oil into a gas cap
because of a natural water drive, down dip water injection, or both. Gas injection to increase
recoveries from reservoirs containing volatile, high-shrinkage oils and into gas-cap reservoirs
containing retrograde gas condensate. Gas injection into very under saturated oil reservoirs for
the purpose of swelling the oil and hence increasing oil recovery. In this case there are limited
pilot field projects conducted on EOR process by gas injection in shale oil reservoirs. Although a
lot of studies have been made on gas injection in tight gas or oil reservoirs, it is not clear to the
public what the main recovery mechanism is in shale oil reservoirs. Diffusion is considered as an
important factor in the oil recovery process in fractured shale reservoirs. Most of the current
studies on diffusion are performed in a way that fixes the producing pressure equal to the initial
reservoir or core pressure. In order to study the diffusion effect, the convective displacement is
eliminated or minimized. In this paper, the role of diffusion on improving oil recovery in
fractured Eagle Ford shale oil reservoirs is discussed. Hoteit and Firoozabadi (2009) investigated
the diffusion effect on recovery performance in a fractured gas/condensate reservoir. Their
simulation results showed that molecular diffusion has a significant effect on gas recovery if the
reservoir pressure is below the minimum miscible pressure. Modelling of the diffusion effect on
ultimate oil recovery in extensively fractured shale reservoir is crucial to the development of
these marginal shale oil/gas projects. Evaluation of the recovery contribution from diffusion will
provide important insights into the recovery mechanisms in intensely fractured shale gas/oil
reservoirs. Currently, a majority of the diffusion models were developed on the basis of the
single-porosity model that demands tremendous grid refinement in intensely fractured shale oil
reservoirs. The grid refinement is necessary surrounding the fracture intersections that makes the
system become computationally expensive. In this paper, the matrix-matrix and matrix-fracture
diffusion is coupled into a dual permeability model to overcome the drawback of single-porosity
model. The simulation results indicate that the stimulated natural fractures are critical to
enhancing oil recovery and well productivity in shale oil reservoirs. Including diffusion effect in
gas injection in fractured shale oil reservoirs achieves higher oil production. The simulation
results demonstrate that the enhanced oil recovery by gas injection scheme in the Eagle Ford
shale oil reservoir will benefit from matrix-matrix and matrix-fracture molecular diffusion,
varying with the injection rate, intensity of natural fractures and other factors.

Sensitivity Analysis of Hydraulic Fracture Geometry In Shale

Gas Reservoirs
Summery
Drilling long horizontal wellbores and completing wells with multistage fracturing are common
practices in shale play development. One of the keys to enhancing production of these ultra tight
reservoirs is the creation of a complex fracture system with very high surface area. Results of the
current study show that post-treatment production data exhibit distinct features associated with
various fracture systems and should be able to aid in describing the complex fracture system. The
primary objective of this work was to find correlations between early-time production signatures
and the fracture network. A combination of horizontal drilling and multiple hydraulic fracturing

has been used to stimulate shale gas reservoirs for economical gas production. The numerical
simulation is a useful tool to optimize fracture half-length and spacing in a multistage fracturing
design. In this work, performed a sensitivity study of gas production for a shale gas well with
different geometries of multiple transverse hydraulic fractures, in which fractures half-lengths
vary. Hydraulic fractures are divided into two outer and inner fracture groups. The simulation
results revealed that the outer fractures contribute more to gas production when fracture spacing
is small due to the effect of fracture interference.

Optimization of Well Spacing for Bakken Tight Oil Reservoirs

Summary
Tight oil is conventional oil that is found within reservoirs with very low pressure. The oil
contain within these reservoir rocks typically will not flow to the wellbore at economic rate
without assistance from technologically advance drilling and completion process. Commonly,
horizontal drilling couple with multi-stage fracturing is used to access these difficult to produce
reservoir. Oil is defined either heavy oil or medium to light grade depend on the density of the
hydrocarbon and its ability to flow. Heavy oil generally refers to crude oil is that too viscous for
pipeline transport. Based on field production data in the Bakken Formation and optimization of
fracture design for single well and multiple wells through economic analysis is clearly critical. In
this work, we performed history matching with field production data in the Bakken Formation,
where the wells were pumped with three different proppant types such as sand only,
sand/ceramic, and ceramic only. Geomechanics effect, i.e., stress-dependent fracture
conductivity, is taken into account. Based on the history matching results, fracture half-length
and fracture conductivity were quantified with and without the geomechanics effect. For
reservoir modelling including multiple fractures, compared bi-wing fracture and fracture network
models. Each cluster in single perforation stage is assumed to generate an effective hydraulic
fracture. Subsequently, performed optimization of fracture design for single horizontal well with
purpose of maximizing the objective function of net present value. Furthermore, based on the
optimal fracture design for the single well, performed. Finally, the optimal number of wells was
determined. This work is valuable for guiding fracture treatments design and multiple wells
placement in the Bakken tight oil reservoirs.

A Dynamic Prediction Model For GasWater Effective Permeability Based On

Coalbed Methane Production Data
Summery
Coalbed methane is classified as unconventional gas reservoir. The difference between CBM and
conventional gas reservoir is related to gas storage mechanism. In conventional gas reservoir, the
gas is stored as free gas in porous media. In coalbed, gas is stored as adsorbed gas on coal
surface (micropores) and in fracture (cleat) as free gas. But, amount of gas within cleat is very
low and in some cases, it can be neglected. To understanding of the relative permeability of gas
and water in coal reservoirs is vital for coalbed methane (CBM) development. In this case, a
prediction model for gaswater effective permeability is established to describe the permeability
variation within coal reservoirs during production. The effective stress and matrix shrinkage

effects are taken into account by introducing the Palmer and Mansoori (PM) absolute
permeability model. The endpoint relative permeability is calibrated through experimentation
instead of through the conventional Corey relative permeability model, which is traditionally
employed for the simulation of petroleum reservoirs. The absolute permeability model and the
relative permeability model are comprehensively coupled under the same reservoir pressure and
water saturation conditions through the material balance equation. The differences between the
actual curve that is measured with the steady-state method and the simulation curve are
compared. The model indicates that the effective permeability is expressed as a function of
reservoir pressure and that the curve shape is controlled by the production data. The results
illustrate that the PMCorey dynamic prediction model can accurately reflect the positive and
negative effects of coal reservoirs. In particular, the model predicts the matrix shrinkage
effect,which is important because it can improve the effective permeability of gas production and
render the process more economically feasible.

Dynamic Safety Risk Analysis of Offshore Drilling

Summary
Blowouts are among the most undesired and feared accidents during drilling operations. The
dynamic nature of blowout accidents, resulting from both rapidly changing physical parameters
and time-dependent failure of barriers, necessitates techniques capable of considering time
dependencies and changes during the lifetime of a well. The exploration and production of oil
and gas involve the drilling of wells using either one or a combination of three drilling
techniques based on drilling fluid density: conventional overbalanced drilling managed pressure
drilling and underbalanced drilling. The conventional overbalanced drilling involves drilling of
wells with mud which exerts higher hydrostatic bottom-hole pressure than the formation pore
pressure. Unlike the conventional overbalanced drilling, underbalanced drilling involves
designing the hydrostatic pressure of the drilling fluid to be lower than the pore pressure of the
formation being drilled. During circulation, the equivalent circulating density is used to
determine the bottom-hole pressure conditions. Due to lower hydrostatic pressure, underbalanced
drilling portends higher safety risk than its alternatives of conventional overbalanced drilling and
managed pressure drilling. The safety risk includes frequent kicks from the well and subsequent
blowout with potential threat to human, equipments and the environment. Safety assessment and
efficient control of well is critical to ensure a safe drilling operation. Traditionally, safety
assessment is done using static failure probabilities of drilling components which failed to
represent a specific case. In based on Bow-tie analysis and real time barriers failure probability
assessment of offshore drilling operations is involving subsurface Blowout Preventer. The Bowtie model is used to represent the potential accident scenarios, their causes and the associated
consequences. Real time predictive models for the failure probabilities of key barriers are
developed and used in conducting dynamic risk assessment of the drilling operations. Using real
time observed data, potential accident probabilities and associated risks are updated and used for
safety assessment. This methodology can be integrated into a real time risk monitoring device for
field application during drilling operations.

Development of Real-Time Pipeline Management System for

Prevention of Accidents
Summary
A variety of pipeline-related accidents take place in urban areas, which are mostly related to the
lack of the pipeline operation and management under the ground. For drainpipe bursts, they
cause mainly urban inundation, urban land subsidence, fishkill by river pollution as seen in
Figure 1. Concerning water supply, ruptured pipes bring about different leakage accidents. In
particular, gas pipe bursts cause serious explosion accidents. Lastly, oil pipe bursts are also
related to severe ground and groundwater pollution issues. These deadly accidents increase
serious causalities as well as social overhead costs, directly and indirectly.Thus, it is considerably
required to preemptively spot and settle those issues through the real-time management of
underground pipelines as the nations most critical infrastructures.

Figure 1. Different Accidents Related to Damages of Underground Pipelines

It is quite difficult to manage pipelines for waterworks, wastewater, oil,electronic power,
communications, etc. because they are buried under the ground.However, if it is possible to
detect or find out the location of leakage or breakage by smart pipeline system, we are able to
reduce social cost from managing pipelines under the ground with ICT sensor technologies
which have been increasingly developed. In addition, if these ICT technologies can be utilized to
prevent pipeline issues in advance, consumers can be served better and also pipeline operators
can give better services to them. So web programs linking the current pipeline management with
the ICT technologies in real-time make it possible to prevent pipeline problems beforehand when
carrying out different pipeline constructions. This management system for prevention requires
that some concepts should be defined and included to better understand them, as shown in Figure
2, 1) It is required to previously set up more work space for prevention in the infrastructure. The
work space should be provided through the current GIS-based management system 2) The
prevention should be provided by two step processes; construction workers receive a warning
both when they enter the work space and when they damage the sensor-embedded warning tape

in the work space 3) Remote terminal unit (remote sensor) detects damage and traces its location
if construction workers damage the tape. This uses a technology created by the multi-smart
pipeline system Location information concerning the damage of the warning tape is sent to a
monitoring server, shown by the current GIS mapping system linked with control service
program, and then transmitted to SmartPhone App Software for user to carry out prevention.

Figure 2. Concepts of Prevention Management System for Underground

Pipelines

Meeting The Challenges Of Todays Oil And Gas Exploration And Production
Industry
Summary
The deep waters of the Gulf of Mexico, the frigid regions of Russia, and the hot, dusty,
undeveloped deserts of the Middle East are merely the geographic challenges facing todays oil
and gas exploration and production industry. But other challenges just as serious and as
threatening face the industry as well. Global geopolitical forces are creating a highly volatile,
rapidly fluctuating crude oil and gas market. Global competition for depleting resources
continues to drive the need to lower operating costs and increase finding and recovery rates. The
number of skilled resources continues to decline. Shareholders are pressuring companies for a
return on their investments that is commensurate with other long-term investment strategies. And
while advanced technology, such as 3D and 4D seismic down hole sensors, and bandwidth can
provide vast amounts of near real-time information that can help companies be more successful
in exploration and production, there is often too much complex information to assimilate and
understand in the time needed to make quick, accurate decisions. Key challenges facing the oil
and gas industry There may be no other industry today that demands a more diverse set of
human, political, mechanical and technological capabilities than the oil and gas exploration and

production industry. Competition for natural resources has driven companies to explore and
produce in harsh, remote and even hostile locations, where even the simplest of logistical tasks
can be difficult and costly. And, as the environment grows more diverse and unforgiving and the
challenges more complex, skilled human resources are aging and growing scarce.

Figure 3

Key Issues Related To Modelling Of Internal Corrosion Of Oil And Gas

Pipelines
Summary
Building models of physico-chemical processes has many purposes. They are of help to an
engineer in industry as much as to a researcher in a laboratory. Models (should) reect a way of
thinking, a way of making sense of all the accumulated information, a way of seeing how it all
ts together (or does not), and last but not least are a tool to predict what may happen in the
future. Models are tools that can assist engineers in making decisions related to design,
operations and control. In the text below, the state-of-the-art in modelling of internal corrosion of
oil and gas pipelines made from carbon steel is reviewed. This area of corrosion is often referred
to simply as carbon dioxide corrosion, even if it frequently involves other corrosive species
such as hydrogen sulphide, organic acid, etc. The review below focuses primarily on physicochemical modelling of sweet (CO) corrosion, while a discussion of sour corrosion (due to H22S)
exceed the scope of this paper. The paper reects how much the author believes we understand
about the complex processes underlying CO corrosion taking place. A few dierent strategies on
how this understanding can be converted into mathematical equations are outlined in the second
part of the paper. Many the details about the equations as well as most of the numerical and
programming aspects of modelling are omitted and the interested reader is referred to the original
publications.

Fig. 4. Predicted and experimentally measured corrosion rates showing the eect of CO
.

A White Paper Product Water From Production Of Crude Oil ,Natural Gas
And Coal Bed Methane
Summary
Produced water is water trapped in underground formations that is brought to the surface along
with oil or gas. It is by far the largest volume by product or waste stream associated with oil and
gas production. Management of produced water presents challenges and costs to operators. This
white paper is intended to provide basic information on many aspects of produced water,
including its constituents, how much of it is generated, how it is managed and regulated in
different settings, and the cost of its management. Chapter 2 discusses the chemical and physical
characteristics of produced water, where it is produced, and its potential impacts on the
environment and on oil and gas operations. Produced water characteristics and physical
properties vary considerably depending on the geographic location of the field, the geological
formation with which the produced water has been in contact for thousands of years, and the type
of hydrocarbon product being produced. Produced water properties and volume can even vary
throughout the lifetime of the reservoir. Oil and grease are the constituents of produced water
that receive the most attention in both onshore and offshore operations, while salt content
(expressed as salinity, conductivity, or total dissolved solids [TDS]) is also a primary constituent
of concern in onshore operations.

A Relational Study Of Supply Chain Agility, Competitiveness And Business

Performance In The Oil And Gas Industry
Summary
The oil and gas supply chain, especially the upstream segment, is inherently typied by the
above characteristics, with large numbers of small and medium-sized enterprises (SMEs) that
provide services and technology to support the operations of the major oil companies. How well
these service providers are managed as part of the total supply chain of the major companies
is of signicant importance to the effectiveness and efficiency of the oil and gas supply chain.
Further, the agility of these rms across the oil and gas supply chain and the impact of supply
chain performance are of great importance in achieving related supply chain competitiveness.
The survey results reported in this study seek to establish, on the one hand, relationships between
the dimensions of agility and related attributes, and, on the other hand, business performance
and competitive bases. The paper is divided into four parts. The rst part is the literature review
that examines issues in supply chain management as well as, in particular, an overview of oil and
gas supply chain. The second part discusses the methodology including research questions,
sample prole and data collection. The third part presents the results and analysis in an attempt to
answer the research questions. The fourth and nal section is the conclusions and suggestions for
further research.

CONCLUSION
To producing oil and gas we need to know and learn the ins and outs of how to produce a wealth
of mineral resources properly and appropriately so as not to cause a negative impact on oil and
gas processing. An engineer oil and gas as well as companies that process to produce oil and gas
should be careful in taking the decision to pass up an exploration of oil and gas because once
occurred blow out on a field oil and gas will destroy the wealth of mineral resources such as oil
and the gas that has been there.
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