Unit 9. Oilfield Exploration and Reserves
Lead-in
Ex. 1. Look at the following cartoons and discuss with a partner, what their main points are. Which one do you find the funniest? What do all cartoons have in common?
A
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B
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Reading and Vocabulary
Ex. 2. Read the text about important notions of oil exploration.
Oilfields and Reserves
An oil field is a region with an abundance of oil wells extracting petroleum (crude oil) from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area. In addition, there may be exploratory wells probing the edges, pipelines to transport the oil elsewhere, and support facilities.
Because an oil field may be remote from civilization, establishing a field is often an extremely complicated exercise in logistics. For instance, workers have to work there for months or years and require housing. In turn, housing and equipment require electricity and water. Pipelines in cold areas may need to be heated. Excess natural gas needs to be burned off if there is no way to make use of it, requiring a furnace and stacks, and pipes to carry it from well to furnace.
Thus, the typical oil field resembles a small self-contained city in the midst of a landscape dotted with drilling rigs and/or the pump jacks known as "nodding donkeys" because of their bobbing arm. Several companies, such as BJ Services, Bechtel, Esso, Schlumberger Limited, Baker Hughes and Halliburton, have organizations that specialize in the large-scale construction of the infrastructure and providing specialized services required to operate a field profitably.
Reserves and resources
Resources are hydrocarbons which may or may not be produced in the future. A resource number may be assigned to an undrilled prospect or an unappraised discovery. Appraisal by drilling additional delineation wells or acquiring extra seismic data will confirm the size of the field and lead to project sanction. At this point the relevant government body gives the oil company a production license which enables the field to be developed. This is also the point at which oil reserves can be formally booked.
Oil reserves are primarily a measure of geological risk – of the probability of oil existing and being producible under current economic conditions using current technology. The three categories of reserves generally used are proven, probable, and possible reserves.
• Proven reserves – defined as oil and gas "Reasonably Certain" to be producible using current technology at current prices, with current commercial terms and government consent – also known in the industry as 1P. Some industry specialists refer to this as P90 – i.e. having a 90% certainty of being produced.
• Probable reserves – defined as oil and gas "Reasonably Probable" of being produced using current or likely technology at current prices, with current commercial terms and government consent. Some industry specialists refer to this as P50 – i.e. having a 50% certainty of being produced. This is also known in the industry as 2P or Proven plus probable.
• Possible reserves – i.e. "having a chance of being developed under favourable circumstances". Some industry specialists refer to this as P10 – i.e. having a 10% certainty of being produced. This is also known in the industry as 3P or Proven plus probable plus possible.
Most of the large volume of crude petroleum consumed in the world is extracted from only a small fraction of the total number of oil fields discovered. The concentration of crude petroleum in a few large fields is a consequence of the interaction of the geologic processes that create and trap petroleum. Even though commercial quantities of petroleum have been discovered in many localities around the world, there are enormous volume differences in fields present in a single region and in the total volume of petroleum present in different regions.
By far the largest known concentrations of conventional petroleum reserves are in the Middle East, particularly in Saudi Arabia, the United Arab Emirates, and Kuwait. The largest concentration of reserves is in the Burgan field in Kuwait, which contains about 68% of that country’s reserves. The second largest concentration of reserves is in the Ghawar field in Saudi Arabia, which is about 18% of that country’s reserves. In some regions, a large portion of the reserves may not be contained in the largest field. However, the largest field usually contains more than 10% of the total reserves of a region. In the modern age, the location of oil fields with proven oil reserves is a key underlying factor in many geopolitical conflicts.
The potential for petroleum and natural gas present in a sedimentary basin must be proved by exploratory wells. The total costs of the wells – which rise exponentially as a result of ever increasing depths, extreme environmental conditions, and continually increasing costs of equipment and personnel – require intensive and expensive scientific preliminary exploration. Aside from the geologists, the geophysicist and, with growing importance, the geochemist, have made themselves equally valuable as exploratory experts. No drilling project is commenced unless these experts, after having made their profitability calculations, have given their approval. After calculation of the risk capital for the exploration phase, an analysis must be made of the receipts and expenditure over the whole operating life of the expected oil field: in other words, the driving force for exploration is the return on investment.
Despite all care, the risk of sinking dry wells remains high. The ratio of discovery wells to dry wells, from 1:8 to 1:6, since the 1950s has not greatly improved. The reason is that exploration advances into new basins (or parts of basins) and to greater depths. The ratio is very much more favorable, for instance, in the Norwegian North Sea, where of about 300 exploration wells, of which about half were wildcats (i.e., wells drilled in regions not known to be productive), more than 100 were oil bearing. The success rate was 1:3.5. It is therefore necessary to reconstruct the conditions of formation of the hydrocarbons in the chronological and regional framework and to check whether potential reservoir rocks are in trap position for oil or gas.
Ex. 3. Decide which answer, A, B, C, or D, is correct, according to the text.
An oil field usually includes all of the following EXCEPT:
exploration wells
production wells
refining facilities
oil transport facilities
What expenses are included in establishing an oilfield?
water
electrical power
accommodation
all of these
Why does an oilfield resemble a city?
Drilling rigs look like city buildings.
It is very crowded.
Large companies have their offices there.
It has its own infrastructure.
What is necessary in order to get a project sanction?
The size of the field should be known.
The exact amount of reserves should be known.
A certain number of wells should be drilled.
Oil reserves must be officially booked.
What determines the probability of reserves recovery?
current oil prices
recovery technology
government sanction
all of these
Why is oil production concentrated in a few large fields only?
It is commercially unreasonable to produce oil from smaller fields.
The geologic evolution of these regions has resulted in large reserves of oil.
Few fields have been discovered in other regions.
Other regions have unequal amount of petroleum in different fields.
What does the author imply about countries in the Middle East?
Together, they produce about 10 percent of the region’s petroleum.
Each of them has only one giant oil field.
They have the greatest volume of oil reserves in the world.
There are a lot of geopolitical conflicts in this region.
What is NOT true about the geochemist involved in oilfield exploration?
The importance of his work is now greater than before.
He calculates the economic potential of an oilfield.
His job is to estimate the amount of investment.
Drilling starts after he gives his positive decision.
What is special about North Sea fields?
Many wells produce more oil than initially expected.
The processes of oil trap formation in the North Sea have been reconstructed.
Exploration in the North Sea is going deeper all the time.
There is high risk of drilling into non-productive areas.
Ex. 4. VOCABULARY. In the text above, find the equivalents to the following words and phrases. (The sequence corresponds to their occurrence in the text.)
изобилие
извлекать
простираться
эксплуатация
влечь за собой, подразумевать
многочисленный
разбросанный
разведочная скважина
разведывать, искать
трубопровод
объекты обеспечения, вспомогательные объекты
отдаленный
сложный
логистика
жилье
излишний, излишек
камера сгорания
выводная труба
напоминать
автономный
среди
станок-качалка
станок-качалка, штанговый насос
крупномасштабный
эксплуатировать месторождение
выгодно
присваивать (что-л. чему-л.)
оценка
оконтуривающая скважина
сейсмические данные
подтвердить
санкционирование проекта
соответствующий
государственный орган
лицензия на эксплуатацию
поставить запасы на баланс
доказанные запасы
вероятные запасы
возможные запасы
текущий
коммерческие условия
согласие, разрешение
определенность, уверенность
вероятный
благоприятный
потреблять
доля
следствие
взаимодействие
захватывать в ловушку
местность
традиционные запасы
скрытый фактор
геополитический конфликт
осадочный бассейн
возрастать в геометрической прогрессии
постоянно возрастающий
предварительный
начинать
расчеты прибыльности
одобрение
капитал, вложенный в связанный с риском проект
выручка, доход
расходы
период эксплуатации
доход на инвестиции
бурить сухие скважины
соотношение
скважина, пробуренная без предварительной разведки
нефтеносный
Ex. 5. From the Vocabulary List above, find synonyms to the following items.
probable
look like
profit
area
accommodation
involve, lead to
difficult
assessment
begin
numerous
Ex. 6. Match words from Column A to the words from Column B in order to form phrases. Translate the resulting phrases into Russian. Make up five sentences with these phrases.
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Column B |
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Ex. 7. The Vocabulary List contains a number of useful economical terms. Match the terms and their definitions.
a) logistics |
d) profitability calculations |
g) expenditure |
b) production license |
e) risk capital |
h) operating life |
c) book |
f) receipt |
i) return on investment |
The net profit generated by an investment over a specified period of time relative to the size of the investment.
The entire amount of income before any deductions are made
A document issued by the governing state granting an oil company authority to produce oil and natural gas in a designated geographic area.
A product's service life is its expected lifetime, or the acceptable period of use in service.
To register assets at a certain government authority.
Calculations of gain in a business for the benefit of the owners.
The management of materials flow through an organization, from raw materials through to finished goods
Payment of cash or transfer of property or services for the purpose of acquiring an asset or service.
Money available for investment into a high-risk business or security
Ex. 8. The Vocabulary List contains some useful terms from the sphere of oil exploration. Reconstruct the definitions putting the phrases in the correct order.
Exploratory well – of a new reservoir / a well / either in search / of an already developed field / or to extend the known limits / drilled to an unexplored depth / or in unproven territory.
Stack – for venting hot gases / from a boiler, stove, / a chimney / furnace or fireplace / to the outside atmosphere / or smoke.
Furnace – with an enclosed chamber / of space-heating equipment / a type / where fuel is burned.
Pump jack – drive for a reciprocating* / installed in an oil well / piston pump** / the overground.
Delineation well – to extend the known boundaries / the proved area / a well / of an oil or gas reservoir / in an attempt / drilled just outside / of the reservoir.
Sedimentary basin – the deposition / suitable for / geological environment / a basin-like / of sediments.
Dry well – that is not / an exploratory / a producing well / or development well.
Wildcat – exists / drilled in an area / a well / oil or gas / production / where no current.
* reciprocating – совершающий возвратно-поступательное движение
** piston pump – поршневой насос
Ex. 9. Insert appropriate items from the box into the following sentences. Sometimes you will have to change the form of the word.
a) favourable |
f) excess |
k) ratio |
p) fraction |
b) conventional reserves |
g) extend |
l) approval |
q) oil bearing |
c) return on investment |
h) consent |
m) exploitation |
r) government bodies |
d) book |
i) commercial terms |
n) trap |
s) expenditure |
e) nodding donkeys |
j) appraisal |
o) current |
t) sedimentary basin |
The authorities have granted their __________ for oil exploration only after the company provided the exact volume of proven reserves.
Employees' salaries are just a __________ of the total cost of the project.
The Securities and Exchange Commission is considering changing the rules for how oil and gas companies __________ their reserves onto balance sheets.
The author of the article describes several factors which control the __________ of petroleum reserves to production.
Ghawar's __________proven reserves are 12% of the world's total. The field produces 5 mbd, which is 6.25% of the world's oil production.
__________ are becoming scarce, that is why oil industries are beginning to invest in other types of reserves, such as heavy oil.
The capital __________ of oil and gas companies witnessed a significant decrease in 2009 after the surge in 2007–08.
A difficult situation can arise where a petroleum reservoir __________across national boundaries.
The government is trying to create a more __________ climate for investments into oil industry.
__________of Blake Oil field in the North Sea began in June 2001.
__________are common sight in many oil-rich areas, dotting the countryside and occasionally serving as local landmarks.
Exploration has revealed thin-bedded __________ sands above the main portion of the reservoir.
It will be rather difficult to obtain government __________ for the project because the seismic data is not very satisfactory.
The programme of field __________ included drilling seven exploration wells and analysis of seismic data.
This oil company has established strong links with the local __________, which now support its exploration project in the region.
The naturally occurring hydrocarbons are __________ by overlying rock formations with lower permeability.
The __________ in the oil production project was much smaller than expected because many of the drilled wells were dry.
Under current __________ it is unprofitable to develop this field, because the amount of reserves is too small.
The burning of __________ gas is part of regular preventative maintenance as work crews test natural gas lines.
Giant petroleum fields and significant petroleum-producing __________ are closely associated.
Ex. 10. Translate the following sentences into English, using vocabulary from the text. (The items are underlined.)
Этот крупномасштабный проект будет санкционирован только тогда, когда будет получена лицензия на эксплуатацию.
Доказанные запасы этого месторождения довольно малы, и текущие коммерческие условия не настолько благоприятны, чтобы можно было начинать его эксплуатацию.
При обустройстве месторождения две бригады занимаются строительством трубопровода, а три обеспечивают вспомогательные объекты.
Добыча нефти с отдаленных месторождений в северных регионах связана со сложной логистикой.
Сверху месторождение напоминало небольшое автономное поселение с многочисленными штанговыми насосами и скважинами.
Если у компании нет определенности в том, каков объем вероятных запасов на месторождении, будет трудно получить согласие соответствующего государственного органа.
Сейсмические данные подтвердили высокий объем углеводородов в этом осадочном бассейне.
Расходы на обустройство месторождения особенно высоки на начальном этапе, когда необходимо построить жилье и закупить оборудование, в частности, станки-качалки.
Оконтуривающие скважины позволяют наиболее точно определить границы нефтеносного участка и избежать бурения сухих скважин.
Традиционные запасы углеводородов не могут удовлетворить постоянно возрастающие потребности стран в топливных ресурсах.
Прежде чем начинать эксплуатацию месторождения, необходимо произвести расчеты прибыльности и оценить вероятный доход на инвестиции.
Предварительная оценка запасов месторождения показала, что будет возможно выгодно добывать нефть в течение 18 лет.
В течение периода эксплуатации скважины ее продуктивность снижается, и это влечет за собой дополнительные расходы.
Изобилие нефти в странах Ближнего Востока является скрытым фактором многих геополитических конфликтов.
Speaking and Communication Skills
Ex. 11. Match the English phrases containing the word “field” with their Russian equivalents.
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Ex. 12. Arrange the phrases from the previous exercise under the following headings:
stages of field exploration, development and production;
types of field according to the type of resource.
Choose five of the phrases from the Exercise above and explain them to your partner.
Grammar
Ex. 13. Study the following information.