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Introduction to Oil Industry

Outline

■ Terminology
■ Oil Importance
■ World Reserve
■ Egypt Reserve
Terminology

■ Oil
■ Petroleum
■ Natural Gas
■ Hydrocarbons
■ Crude Oil
Oil
■ There are many kinds of oils:
■ We have “oils” that are used for cooking and sun
tanning. Some of these oils come from different
types of plants (such as vegetable oil) and animals
(cod liver oil).

■ The oil, we are concerned with here, is derived from


rocks within the earth. It is called petroleum.
Petroleum

■ A name taken from the Latin words meaning "rock


oil".
■ In its broadest sense, the term embraces the whole
spectrum of hydrocarbons - gaseous, liquid, and
solid.
■ The term crude oil refers to oil in its "crude" or
unrefined state (oil as it comes out of the ground.)
Hydrocarbons
■ Organic chemical compounds of hydrogen and carbon
atoms.

■ There are a vast number of these compounds and they


form the basis of all petroleum products.

■ They can form solids (such as the asphalt), liquids (such


as conventional liquid petroleum), and gases (such as
natural gas).
Natural Gas
■ Natural gas is a mixture of
hydrocarbons that are in a
gaseous state at normal
temperature and pressure.

■ It consists mostly of methane,


but also contains ethane,
propane, butane and pentane,
which are the simplest and
lightest hydrocarbons.
Crude Oil
■ The term crude oil refers to oil in its "crude" or
unrefined state; that is to say oil as it comes out of
the ground.

■ This crude oil must be transported to a refinery to be


separated into constituents (such as gasoline,
aviation fuel, fuel oil, etc.) before it can be used by
the consumer.
Why is Oil so Important in Today’s
World?
• A Source of Energy
• Other Uses for Oil
Energy: Where Would We Be Without It?
■ Heat and light
■ Transportation
■ Electrical
products
■ Petroleum
products
─ Lipstick
─ Glasses
─ Clothing
Energy: Where Would We Be Without It?
■ Heat and light
■ Transportation
■ Electrical
products
■ Petroleum
products
─ Cosmetics
─ Medicines
─ Sports equipment
─ Automotive parts
Fossil Fuels – Nature’s Batteries
■ 86% of energy used in U.S.
is derived from fossil fuels
─ Oil
─ Natural Gas
─ Coal
Where Do Oil and Gas Come From?

(NOT FROM UNDERGROUND LAKES!)


Where Do Oil and Gas Come From?
World Reserve
World Reserve
Egyptian Oil History
1886: 1st well was drilled in Gemsa
1910: Gemsa Production
1961: 1st offshore petroleum field in Egypt and Middle East
1965: The oldest and biggest petroleum field (AlMorgan)
1967: AlMorgan Production
Egyptian Gas History
1963: Gas exploration
1967: 1st Gas field “Abo Mady Field”
1969: 1st Mediterranean Sea gas field in Egypt “Abo Keer Field”
1969: 1st Western Desert gas field “Abo ElGharadek Field”
Egypt's Oil Production and Consumption
Egypt's Natural Gas Production
Egyptian Reserve
■ Oil Proved Reserve: 3,800,000 (3.8 MMMbbl) (2006)
■ Oil Proved Reserve: 0.32 % of world reserve
■ Egypt's Rank: 27th (World countries)
8th (Arabic countries)

■ Natural Gas Proved Reserve: 1,589,000,000,000 m3 (1.589


trillion m3)
■ Natural Gas Proved Reserve: 1.07 % of world reserve
■ Egypt's Rank: 19th (World countries)
5th (Arabic countries)
Egyptian Reserve
Origin of Petroleum
Where is Oil Found?
Some people think that oil is in big pools underground.

Actually, most oil is trapped in the tiny pore spaces between


grains of rock or sand. Most of these pores are too small to be
seen with the naked eye.
Origin of Petroleum
■ Non-Organic Theory:
High Temperature
H+C Hydrocarbon
High Pressure

■ Organic Theory.
Basic Definitions
■ Migration
■ Mother Rock
■ Carrier Rock
■ Reservoir Rock
■ Trap
Migration:

Migration is the movement of oil from a mother


rock to a reservoir rock.
Mother Rock:

Mother rocks are any rocks in which sufficient


organic matter to form Petroleum has been
accumulated & preserved.
Carrier Rock:

A highly porous, and permeable rock through which


oil can migrate.
Reservoir Rock:

Other porous, permeable rock formations in which


petroleum has accumulated.
Trap:

A geometric configuration of structure in which


permeable rock types are surrounded and confined by
impermeable rock types.
Traps
Salt Dome

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Faults
Oil Exploration
Exploration Methods

• Gravity Method
• Magnetic Method
• Seismic Method
Gravity & Magnetic Methods
Seismic Method
Seismic Method