Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
Overview
An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas. Oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units.
Operation
Raw or unprocessed crude oil is not generally useful. Although "light, sweet" (low viscosity, low sulfur) crude oil has been used directly as a burner fuel for steam vessel propulsion, the lighter elements form explosive vapors in the fuel tanks and are therefore hazardous, especially in warships. Instead, the hundreds of different hydrocarbon molecules in crude oil are separated in a refinery into components which can be used as fuels, lubricants, and as feedstock in petrochemical processes that manufacture such products as plastics, detergents, solvents, elastomers and fibers such as nylon and polyesters.
Petroleum fossil fuels are burned in internal combustion engines to provide power for ships, automobiles, aircraft engines, lawn mowers, chainsaws, and other machines. Different boiling points allow the hydrocarbons to be separated by distillation. Since the lighter liquid products are in great demand for use in internal combustion engines, a modern refinery will convert heavy hydrocarbons and lighter gaseous elements into these higher value products.
Oil can be used in a variety of ways because it contains hydrocarbons of varying molecular masses, forms and lengths such as paraffins, aromatics, naphthenes (or cycloalkanes), alkenes, dienes, and alkynes. While the molecules in crude oil include different atoms such as sulfur and nitrogen, the hydrocarbons are the most common form of molecules, which are molecules of varying lengths and complexity made of hydrogen and carbon atoms, and a small number of oxygen atoms. The differences in the structure of these molecules account for their varying physical and chemical properties, and it is this variety that makes crude oil useful in a broad range of applications.
Once separated and purified of any contaminants and impurities, the fuel or lubricant can be sold without further processing. Smaller molecules such as isobutane and propylene or butylenes can be recombined to meet specific octane requirements by processes such as alkylation, or less commonly, dimerization. Octane grade of gasoline can also be improved by catalytic reforming, which involves removing hydrogen from hydrocarbons producing compounds with higher octane ratings such as aromatics. Intermediate products such as gasoils can even be reprocessed to break a heavy, long-chained oil into a lighter short-chained one, by various forms of cracking such as fluid catalytic cracking, thermal cracking, and hydrocracking. The final step in gasoline production is the blending of fuels with different octane ratings, vapor pressures, and other properties to meet product specifications.
Oil refineries are large scale plants, processing about a hundred thousand to several hundred thousand barrels of crude oil a day. Because of the high capacity, many of the units operate continuously, as opposed to processing in batches, at steady state or nearly steady state for months to years. The high capacity also makes process optimization and advanced process control very desirable.
Major Products
Petroleum products are usually grouped into three categories: light distillates (LPG, gasoline, naphtha), middle distillates (kerosene, diesel), heavy distillates and residuum (heavy fuel oil, lubricating oils, wax, tar). This classification is based on the way crude oil is distilled and separated into fractions (called distillates and residuum).
• Liquid petroleum gas (LPG)
• Gasoline (also known as petrol)
• Naphtha
• Kerosene and related jet aircraft fuels
• Diesel fuel
• Fuel oils
• Lubricating oils
• Paraffin wax
• Asphalt and Tar
• Petroleum coke
Common Process Units Found In A Refinery
The number and nature of the process units in a refinery determine its complexity index.
• Desalter unit washes out salt from the crude oil before it enters the atmospheric distillation unit.
• Atmospheric Distillation unit distills crude oil into fractions. See Continuous distillation.
• Vacuum Distillation unit further distills residual bottoms after atmospheric distillation.
• Naphtha Hydrotreater unit uses hydrogen to desulfurize naphtha from atmospheric distillation. Must hydrotreat the naphtha before sending to a Catalytic Reformer unit.
• Catalytic Reformer unit is used to convert the naphtha-boiling range molecules into higher octane reformate (reformer product). The reformate has higher content of aromatics and cyclic hydrocarbons). An important byproduct of a reformer is hydrogen released during the catalyst reaction. The hydrogen is used either in the hydrotreaters or the hydrocracker.
• Distillate Hydrotreater unit desulfurizes distillates (such as diesel) after atmospheric distillation.
• Fluid Catalytic Cracker (FCC) unit upgrades heavier fractions into lighter, more valuable products.
• Hydrocracker unit uses hydrogen to upgrade heavier fractions into lighter, more valuable products.
• Visbreaking unit upgrades heavy residual oils by thermally cracking them into lighter, more valuable reduced viscosity products.
• Merox unit treats LPG, kerosene or jet fuel by oxidizing mercaptans to organic disulfides.
• Coking units (delayed coking, fluid coker, and flexicoker) process very heavy residual oils into gasoline and diesel fuel, leaving petroleum coke as a residual product.
• Alkylation unit produces high-octane component for gasoline blending.
• Dimerization unit converts olefins into higher-octane gasoline blending components. For example, butenes can be dimerized into isooctene which may subsequently be hydrogenated to form isooctane. There are also other uses for dimerization.
• Isomerization unit converts linear molecules to higher-octane branched molecules for blending into gasoline or feed to alkylation units.
• Steam reforming unit produces hydrogen for the hydrotreaters or hydrocracker.
• Liquified gas storage units for propane and similar gaseous fuels at pressure sufficient to maintain in liquid form. These are usually spherical vessels or bullets (horizontal vessels with rounded ends.
• Storage tanks for crude oil and finished products, usually cylindrical, with some sort of vapor emission control and surrounded by an earthen berm to contain spills.
• Amine gas treater, Claus unit, and tail gas treatment for converting hydrogen sulfide from hydrodesulfurization into elemental sulfur.
• Utility units such as cooling towers for circulating cooling water, boiler plants for steam generation, instrument air systems for pneumatically operated control valves and an electrical substation.
• Wastewater collection and treating systems consisting of API separators, dissolved air flotation (DAF) units and some type of further treatment (such as an activated sludge biotreater) to make such water suitable for reuse or for disposal.
• Solvent refining units use solvent such as cresol or furfural to remove unwanted, mainly asphaltenic materials from lubricating oil stock (or diesel stock).
• Solvent dewaxing units remove the heavy waxy constituents petrolatum from vacuum distillation products.
Tuesday, September 15, 2009
OPEC
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
The Organization of the Petroleum Exporting Countries, OPEC; is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again.
According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world and when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world. This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.
OPEC decisions have had considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many whom had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. Overall, the evidence suggests that OPEC did act as a cartel, when it adopted output rationing in order to maintain price.
The Organization of the Petroleum Exporting Countries, OPEC; is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again.
According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world and when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world. This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.
OPEC decisions have had considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many whom had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. Overall, the evidence suggests that OPEC did act as a cartel, when it adopted output rationing in order to maintain price.
ENERMAX, INC.
EnerMax, Inc. is an independent Texas oil and natural gas company specializing in the exploration and development of fossil fuel reserves. Our operations are focused on the petroleum rich regions of Texas and Louisiana. Our motto, "Exploring today for a better tomorrow," is more than just a tagline. It is our mission. We strive to increase proven domestic reserves, and we do this by exploring new fields and revisiting previously drilled areas to discover them anew with advanced technology.
Texas oil drilling is an historical endeavor - a necessary endeavor which we are proud to pursue. EnerMax is steeped in the culture of the Old West and the historical pursuit of one of the world's most important natural resources. Every step of our operations, from oil drilling to recovery, is handled by experts who respect this world-renowned Texas tradition.
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
In this complex energy market, EnerMax is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We have assembled a team of recognized experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Mission Statement
"Exploring today for a better tomorrow."
Company History
In 2001, Bret Boteler founded EnerMax, Inc. with a desire to set a new standard of quality for independent Texas oil and gas producers. Bret believed that communicating openly and frequently with his partners provided a better way of doing business. The partners agreed, and their support encouraged EnerMax to seek larger, more rewarding projects. As the company grew, Bret recruited talented, committed employees by creating a company profit sharing program that directly ties each employee to the success of each drilling project. As a result of his strategy, EnerMax has become an industry leader in Texas oil exploration, drilling and development.
EnerMax began by offering its partners the opportunity to participate in projects sponsored by its industry partners. This approach was well-received. However, in response to its partners' desires for more "direct-cost" projects, EnerMax began to explore in-house prospect generation.
Today, EnerMax has operations in Texas and Louisiana. Although future acquisitions are projected, our current holdings will provide us with enough prospects to drill consistently over the next 7-10 years. At EnerMax, we remain committed to our original vision and dedication to quality as we forge ahead to even greater success.
Guiding Principles
Family
We treat our partners and employees as family. Our family is important to us and each member receives the respect and attention they deserve. We work diligently to ensure that our partners receive value from all that we do. We invite into our family only intelligent, motivated and ethical employees who pursue excellence and growth. We provide tools and resources for each to grow both personally and professionally and we celebrate each person's success by rewarding them for their results.
Integrity
We conduct our daily lives always mindful to treat others as we wish to be treated. Each member of our family understands the importance of conducting themselves in accordance with the highest moral and ethical standards possible at work, at home and in our community.
Communication
We demand of ourselves the open and honest communication of our actions and intentions that all our partners deserve. We strive to foster an atmosphere of openness, accessibility, responsiveness and accountability in all of our communication throughout the organization.
Foresight
We commit ourselves to strengthening the value of our partners' holdings. To accomplish this, we react quickly to trends within the industry and strategically position ourselves to take advantage of new business opportunities. By investing alongside our partners, we also ensure that our focus is continually on the most profitable means of exploration, development, and recovery.
President – Bret Boteler
Bret Boteler, founder and President of EnerMax, Inc., has a diverse background in oil & gas exploration and development as well as other business activities. Mr. Boteler graduated from Southwest Texas State University with a BBA in Management. While there he participated in a Cooperative Education Program with General Dynamics, a major defense contractor based in Fort Worth, Texas. After graduating, Bret worked there for five years as a purchaser of high performance electronics for the F-16 Fighter. From 1991 to 1995, he worked for a local oil and gas firm that was involved in drilling vertical, horizontal and offshore wells. From 1996 to 1998, Bret served as Vice President of Client Relations for TBX Resources, a publicly traded oil and gas company specializing in production acquisition. In 1999, he founded Ghivit.com, Inc., a Dallas based company specializing in prepaid fuel and gift cards. In 2003, Ghivit.com was sold to a prominent Chicago-based company that dominates the prepaid fuel card industry. In 2001, Bret founded EnerMax, Inc. to capitalize on the growing demand for natural resources. Since then, he has been responsible for directing the company to develop two proprietary filtering processes which locate major oil deposits which were previously undetected by older technologies.
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) is proud to have EnerMax, Inc. is an industry partner.
Texas oil drilling is an historical endeavor - a necessary endeavor which we are proud to pursue. EnerMax is steeped in the culture of the Old West and the historical pursuit of one of the world's most important natural resources. Every step of our operations, from oil drilling to recovery, is handled by experts who respect this world-renowned Texas tradition.
Oil and gas speculations have captured the focus of the investment market. This is because all sectors of business are deeply affected by the price and availability of fossil fuels. Oil and gas investments have performed well over the past several years as commodity prices continue in a steady overall uptrend, and the projected growth rate of nations such as China and India indicate a continuation of this trend. In fact, growing concerns about increasing energy demands from developing nations are causing many nations to seek more energy independence.
In this complex energy market, EnerMax is consistently developing oil and gas prospects that have a solid geological foundation and risk/reward profile. We have assembled a team of recognized experts to evaluate our projects from every angle. With our team's ingenuity and the advantage of new technological innovations, we are developing maximum leverage for the recovery of domestic oil and gas reserves.
Mission Statement
"Exploring today for a better tomorrow."
Company History
In 2001, Bret Boteler founded EnerMax, Inc. with a desire to set a new standard of quality for independent Texas oil and gas producers. Bret believed that communicating openly and frequently with his partners provided a better way of doing business. The partners agreed, and their support encouraged EnerMax to seek larger, more rewarding projects. As the company grew, Bret recruited talented, committed employees by creating a company profit sharing program that directly ties each employee to the success of each drilling project. As a result of his strategy, EnerMax has become an industry leader in Texas oil exploration, drilling and development.
EnerMax began by offering its partners the opportunity to participate in projects sponsored by its industry partners. This approach was well-received. However, in response to its partners' desires for more "direct-cost" projects, EnerMax began to explore in-house prospect generation.
Today, EnerMax has operations in Texas and Louisiana. Although future acquisitions are projected, our current holdings will provide us with enough prospects to drill consistently over the next 7-10 years. At EnerMax, we remain committed to our original vision and dedication to quality as we forge ahead to even greater success.
Guiding Principles
Family
We treat our partners and employees as family. Our family is important to us and each member receives the respect and attention they deserve. We work diligently to ensure that our partners receive value from all that we do. We invite into our family only intelligent, motivated and ethical employees who pursue excellence and growth. We provide tools and resources for each to grow both personally and professionally and we celebrate each person's success by rewarding them for their results.
Integrity
We conduct our daily lives always mindful to treat others as we wish to be treated. Each member of our family understands the importance of conducting themselves in accordance with the highest moral and ethical standards possible at work, at home and in our community.
Communication
We demand of ourselves the open and honest communication of our actions and intentions that all our partners deserve. We strive to foster an atmosphere of openness, accessibility, responsiveness and accountability in all of our communication throughout the organization.
Foresight
We commit ourselves to strengthening the value of our partners' holdings. To accomplish this, we react quickly to trends within the industry and strategically position ourselves to take advantage of new business opportunities. By investing alongside our partners, we also ensure that our focus is continually on the most profitable means of exploration, development, and recovery.
President – Bret Boteler
Bret Boteler, founder and President of EnerMax, Inc., has a diverse background in oil & gas exploration and development as well as other business activities. Mr. Boteler graduated from Southwest Texas State University with a BBA in Management. While there he participated in a Cooperative Education Program with General Dynamics, a major defense contractor based in Fort Worth, Texas. After graduating, Bret worked there for five years as a purchaser of high performance electronics for the F-16 Fighter. From 1991 to 1995, he worked for a local oil and gas firm that was involved in drilling vertical, horizontal and offshore wells. From 1996 to 1998, Bret served as Vice President of Client Relations for TBX Resources, a publicly traded oil and gas company specializing in production acquisition. In 1999, he founded Ghivit.com, Inc., a Dallas based company specializing in prepaid fuel and gift cards. In 2003, Ghivit.com was sold to a prominent Chicago-based company that dominates the prepaid fuel card industry. In 2001, Bret founded EnerMax, Inc. to capitalize on the growing demand for natural resources. Since then, he has been responsible for directing the company to develop two proprietary filtering processes which locate major oil deposits which were previously undetected by older technologies.
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) is proud to have EnerMax, Inc. is an industry partner.
DRILLING RIGS
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
Overview
A drilling rig is a machine which creates holes (usually called boreholes) and/or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells or they can be small enough to be moved manually by one person. They sample sub-surface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called 'offshore oil rigs' even if they don't contain a drilling rig). The term "rig" therefore generally refers to the complex of equipment that is used to penetrate the surface of the earth's crust.
Drilling rigs can be:
• Small and portable, such as those used in mineral exploration drilling, water wells and environmental investigations.
• Huge, capable of drilling through thousands of meters of the Earth's crust.
Large "mud pumps" circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate many hundreds of miles or kilometres distant from the supply base with infrequent crew rotation.
Petroleum Drilling Industry
Oil and Natural Gas drilling rigs can be used not only to identify geologic reservoirs but also to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line. This frees up the drilling rig to drill another hole and streamlines the operation as well as allowing for specialization of certain services, i.e., completions vs. drilling.
History
Until internal combustion engines came in the late 19th century, the main method for drilling rock was muscle power of man or animal. Rods were turned by hand, using clamps attached to the rod. The rope and drop method invented in Zigong, China used a steel rod or piston raised and dropped vertically via a rope. Mechanised versions of this persisted until about 1970, using a cam to rapidly raise and drop what, by then, was a steel cable.
In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first efficient pneumatic reciprocating piston Reverse Circulation RC drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.
Mobile Drilling Rigs
In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.
Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 ton continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.
The drilling mechanisms outlined below differ mechanically in terms of the machinery used, but also in terms of the method by which drill cuttings are removed from the cutting face of the drill and returned to surface.
Drilling Rig Classification
There are many types and designs of drilling rigs, with many drilling rigs capable of switching or combining different drilling technologies as needed. Drilling rigs can be described using any of the following attributes:
by power used
• mechanical - the rig uses torque converters, clutches, and transmissions powered by its own engines, often diesel
• electric - the major items of machinery are driven by electric motors, usually with power generated on-site using internal combustion engines
• hydraulic - the rig primarily uses hydraulic power
• pneumatic - the rig is primarily powered by pressurized air
• steam - the rig uses steam-powered engines and pumps (obsolescent after middle of 20th Century)
by pipe used
• cable - a cable is used to raise and drop the drill bit
• conventional - uses metal or plastic drill pipe of varying types
• coil tubing - uses a giant coil of tube and a downhole drilling motor
by height
• single - can drill only single drill pipes. The presence or absence of vertical pipe racking "fingers" varies from rig to rig.
• double - can hold a stand of pipe in the derrick consisting of two connected drill pipes, called a "double stand".
• triple - can hold a stand of pipe in the derrick consisting of three connected drill pipes, called a "triple stand".
by method of rotation or drilling method
• no rotation includes direct push rigs and most service rigs
• rotary table - rotation is achieved by turning a square or hexagonal pipe (the kelly) at drill floor level.
• top-drive - rotation and circulation is done at the top of the drillstring, on a motor that moves in a track along the derrick.
• sonic - uses primarily vibratory energy to advance the drill string
• hammer - uses rotation and percussive force
by position of derrick
• conventional - derrick is vertical
• slant - derrick is slanted at a 45 degree angle to facilitate horizontal drilling
Limits of the Technology
Drill technology has advanced steadily since the 19th century. However, there are several basic limiting factors which will determine the depth to which a bore hole can be sunk.
All holes must maintain outer diameter; the diameter of the hole must remain wider than the diameter of the rods or the rods cannot turn in the hole and progress cannot continue. Friction caused by the drilling operation will tend to reduce the outside diameter of the drill bit. This applies to all drilling methods, except that in diamond core drilling the use of thinner rods and casing may permit the hole to continue. Casing is simply a hollow sheath which protects the hole against collapse during drilling, and is made of metal or PVC. Often diamond holes will start off at a large diameter and when outside diameter is lost, thinner rods put down inside casing to continue, until finally the hole becomes too narrow. Alternatively, the hole can be reamed; this is the usual practice in oil well drilling where the hole size is maintained down to the next casing point.
For percussion techniques, the main limitation is air pressure. Air must be delivered to the piston at sufficient pressure to activate the reciprocating action, and in turn drive the head into the rock with sufficient strength to fracture and pulverise it. With depth, volume is added to the in-rod string, requiring larger compressors to achieve operational pressures. Secondly, groundwater is ubiquitous, and increases in pressure with depth in the ground. The air inside the rod string must be pressurised enough to overcome this water pressure at the bit face. Then, the air must be able to carry the rock fragments to surface. This is why depths in excess of 500 m for reverse circulation drilling are rarely achieved, because the cost is prohibitive and approaches the threshold at which diamond core drilling is more economic.
Diamond drilling can routinely achieve depths in excess of 1200 m. In cases where money is no issue, extreme depths have been achieved because there is no requirement to overcome water pressure. However, circulation must be maintained to return the drill cuttings to surface, and more importantly to maintain cooling and lubrication of the cutting surface. Without sufficient lubrication and cooling, the matrix of the drill bit will soften. While diamond is one of the hardest substances known, at 10 on the Mohs hardness scale, it must remain firmly in the matrix to achieve cutting. Weight on bit, the force exerted on the cutting face of the bit by the drill rods in the hole above the bit, must also be monitored.
Overview
A drilling rig is a machine which creates holes (usually called boreholes) and/or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells or they can be small enough to be moved manually by one person. They sample sub-surface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures (such as oil platforms, commonly called 'offshore oil rigs' even if they don't contain a drilling rig). The term "rig" therefore generally refers to the complex of equipment that is used to penetrate the surface of the earth's crust.
Drilling rigs can be:
• Small and portable, such as those used in mineral exploration drilling, water wells and environmental investigations.
• Huge, capable of drilling through thousands of meters of the Earth's crust.
Large "mud pumps" circulate drilling mud (slurry) through the drill bit and up the casing annulus, for cooling and removing the "cuttings" while a well is drilled. Hoists in the rig can lift hundreds of tons of pipe. Other equipment can force acid or sand into reservoirs to facilitate extraction of the oil or natural gas; and in remote locations there can be permanent living accommodation and catering for crews (which may be more than a hundred). Marine rigs may operate many hundreds of miles or kilometres distant from the supply base with infrequent crew rotation.
Petroleum Drilling Industry
Oil and Natural Gas drilling rigs can be used not only to identify geologic reservoirs but also to create holes that allow the extraction of oil or natural gas from those reservoirs. Primarily in onshore oil and gas fields once a well has been drilled, the drilling rig will be moved off of the well and a service rig (a smaller rig) that is purpose-built for completions will be moved on to the well to get the well on line. This frees up the drilling rig to drill another hole and streamlines the operation as well as allowing for specialization of certain services, i.e., completions vs. drilling.
History
Until internal combustion engines came in the late 19th century, the main method for drilling rock was muscle power of man or animal. Rods were turned by hand, using clamps attached to the rod. The rope and drop method invented in Zigong, China used a steel rod or piston raised and dropped vertically via a rope. Mechanised versions of this persisted until about 1970, using a cam to rapidly raise and drop what, by then, was a steel cable.
In the 1970s, outside of the oil and gas industry, roller bits using mud circulation were replaced by the first efficient pneumatic reciprocating piston Reverse Circulation RC drills, and became essentially obsolete for most shallow drilling, and are now only used in certain situations where rocks preclude other methods. RC drilling proved much faster and more efficient, and continues to improve with better metallurgy, deriving harder, more durable bits, and compressors delivering higher air pressures at higher volumes, enabling deeper and faster penetration. Diamond drilling has remained essentially unchanged since its inception.
Mobile Drilling Rigs
In early oil exploration, drilling rigs were semi-permanent in nature and the derricks were often built on site and left in place after the completion of the well. In more recent times drilling rigs are expensive custom-built machines that can be moved from well to well. Some light duty drilling rigs are like a mobile crane and are more usually used to drill water wells. Larger land rigs must be broken apart into sections and loads to move to a new place, a process which can often take weeks.
Small mobile drilling rigs are also used to drill or bore piles. Rigs can range from 100 ton continuous flight auger (CFA) rigs to small air powered rigs used to drill holes in quarries, etc. These rigs use the same technology and equipment as the oil drilling rigs, just on a smaller scale.
The drilling mechanisms outlined below differ mechanically in terms of the machinery used, but also in terms of the method by which drill cuttings are removed from the cutting face of the drill and returned to surface.
Drilling Rig Classification
There are many types and designs of drilling rigs, with many drilling rigs capable of switching or combining different drilling technologies as needed. Drilling rigs can be described using any of the following attributes:
by power used
• mechanical - the rig uses torque converters, clutches, and transmissions powered by its own engines, often diesel
• electric - the major items of machinery are driven by electric motors, usually with power generated on-site using internal combustion engines
• hydraulic - the rig primarily uses hydraulic power
• pneumatic - the rig is primarily powered by pressurized air
• steam - the rig uses steam-powered engines and pumps (obsolescent after middle of 20th Century)
by pipe used
• cable - a cable is used to raise and drop the drill bit
• conventional - uses metal or plastic drill pipe of varying types
• coil tubing - uses a giant coil of tube and a downhole drilling motor
by height
• single - can drill only single drill pipes. The presence or absence of vertical pipe racking "fingers" varies from rig to rig.
• double - can hold a stand of pipe in the derrick consisting of two connected drill pipes, called a "double stand".
• triple - can hold a stand of pipe in the derrick consisting of three connected drill pipes, called a "triple stand".
by method of rotation or drilling method
• no rotation includes direct push rigs and most service rigs
• rotary table - rotation is achieved by turning a square or hexagonal pipe (the kelly) at drill floor level.
• top-drive - rotation and circulation is done at the top of the drillstring, on a motor that moves in a track along the derrick.
• sonic - uses primarily vibratory energy to advance the drill string
• hammer - uses rotation and percussive force
by position of derrick
• conventional - derrick is vertical
• slant - derrick is slanted at a 45 degree angle to facilitate horizontal drilling
Limits of the Technology
Drill technology has advanced steadily since the 19th century. However, there are several basic limiting factors which will determine the depth to which a bore hole can be sunk.
All holes must maintain outer diameter; the diameter of the hole must remain wider than the diameter of the rods or the rods cannot turn in the hole and progress cannot continue. Friction caused by the drilling operation will tend to reduce the outside diameter of the drill bit. This applies to all drilling methods, except that in diamond core drilling the use of thinner rods and casing may permit the hole to continue. Casing is simply a hollow sheath which protects the hole against collapse during drilling, and is made of metal or PVC. Often diamond holes will start off at a large diameter and when outside diameter is lost, thinner rods put down inside casing to continue, until finally the hole becomes too narrow. Alternatively, the hole can be reamed; this is the usual practice in oil well drilling where the hole size is maintained down to the next casing point.
For percussion techniques, the main limitation is air pressure. Air must be delivered to the piston at sufficient pressure to activate the reciprocating action, and in turn drive the head into the rock with sufficient strength to fracture and pulverise it. With depth, volume is added to the in-rod string, requiring larger compressors to achieve operational pressures. Secondly, groundwater is ubiquitous, and increases in pressure with depth in the ground. The air inside the rod string must be pressurised enough to overcome this water pressure at the bit face. Then, the air must be able to carry the rock fragments to surface. This is why depths in excess of 500 m for reverse circulation drilling are rarely achieved, because the cost is prohibitive and approaches the threshold at which diamond core drilling is more economic.
Diamond drilling can routinely achieve depths in excess of 1200 m. In cases where money is no issue, extreme depths have been achieved because there is no requirement to overcome water pressure. However, circulation must be maintained to return the drill cuttings to surface, and more importantly to maintain cooling and lubrication of the cutting surface. Without sufficient lubrication and cooling, the matrix of the drill bit will soften. While diamond is one of the hardest substances known, at 10 on the Mohs hardness scale, it must remain firmly in the matrix to achieve cutting. Weight on bit, the force exerted on the cutting face of the bit by the drill rods in the hole above the bit, must also be monitored.
Friday, September 11, 2009
ENERMAX SURPASSES MAJOR MILESTONE
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) is very excited that our industry partner, EnerMax,Inc. the Texas-based oil and gas exploration company, announced that it had surpassed a major milestone, hitting the 1 million barrel mark in barrels of oil (BO) and barrels of oil equivalent (BOE) produced. Using advanced recovery techniques and effective resource management, EnerMax has increased the performance of its holdings to 1,100 BOE in daily production, with cumulative production now approximately 1,055,000 BOE.
The rapidly growing company, which marked it's 8 year anniversary this year, expects production to rise by 200% over the next 12 months. "The supply squeeze we're seeing in the market right now is a surprise to many people, but we've been increasing our investments in new oil projects in terms of acreage, seismic acquisition and prospect generation over the past several years. We're ready," said Bret Boteler, founder and president of EnerMax. "Many companies are just beginning to react to market signals. They're running to catch up and get in the game. We've already laid the groundwork to rapidly grow our company without compromising the quality of our performance."
"Reaching a million barrels marked our entry into a new phase of operations. We're ready to capitalize on market trends while making a significant contribution to domestic energy production," he added.
Current activities are focused on utilizing two recently developed proprietary filtering processes to boost results in the Permian Basin - an area that accounts for approximately 20% of all U.S. production - and central west Texas. To date, EnerMax's most prominent filtering process has resulted in an 80 percent success rate in locating commercially productive oil and gas reservoirs. Roughly 13,000 acres held by EnerMax are scheduled for exploration and development in the next 4 years.
About EnerMax:
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
The rapidly growing company, which marked it's 8 year anniversary this year, expects production to rise by 200% over the next 12 months. "The supply squeeze we're seeing in the market right now is a surprise to many people, but we've been increasing our investments in new oil projects in terms of acreage, seismic acquisition and prospect generation over the past several years. We're ready," said Bret Boteler, founder and president of EnerMax. "Many companies are just beginning to react to market signals. They're running to catch up and get in the game. We've already laid the groundwork to rapidly grow our company without compromising the quality of our performance."
"Reaching a million barrels marked our entry into a new phase of operations. We're ready to capitalize on market trends while making a significant contribution to domestic energy production," he added.
Current activities are focused on utilizing two recently developed proprietary filtering processes to boost results in the Permian Basin - an area that accounts for approximately 20% of all U.S. production - and central west Texas. To date, EnerMax's most prominent filtering process has resulted in an 80 percent success rate in locating commercially productive oil and gas reservoirs. Roughly 13,000 acres held by EnerMax are scheduled for exploration and development in the next 4 years.
About EnerMax:
EnerMax, Inc. is a petroleum exploration company that has been aggressively pursuing technology driven oil and gas projects since 2001. Known for it's strategic and efficient operations, EnerMax has been featured by Norman Schwarzkopf's "World Business Review," Platinum Television Group's "Pulse on America," and "U.S. Business Review," a national publication.
REFLECTION SEISMOLOGY
Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) presents this article as part of a series of articles on understanding the energy business. We hope you enjoy this series.
Reflection seismology (or seismic reflection) is a method of exploration geophysics that uses the principles of seismology to estimate the properties of the Earth's subsurface from reflected seismic waves. The method requires a controlled seismic source of energy, such as dynamite/Tovex, a specialized air gun or vibrators, commonly known by their trademark name Vibroseis. By noting the time it takes for a reflection to arrive at a receiver, it is possible to estimate the depth of the feature that generated the reflection. In this way, reflection seismology is similar to sonar and echolocation.
Reflection Experiments
A reflection experiment is carried out by initiating a seismic source (such as a dynamite explosion) and recording the reflected waves using one or more seismometers. On land, the typical seismometer used in a reflection experiment is a small, portable instrument known as a geophone, which converts ground motion into an analog electrical signal. In water, hydrophones, which convert pressure changes into electrical signals, are used. As the seismometers detect the arrival of the seismic waves, the signals are converted to digital form and recorded; early systems recorded the analog signals directly onto magnetic tape, photographic film, or paper. The signals may then be displayed by a computer as seismograms for interpretation by a seismologist. Typically, the recorded signals are subjected to significant amounts of signal processing and various imaging processes before they are ready to be interpreted. In general, the more complex the geology of the area under study, the more sophisticated are the techniques required to perform the data processing. Modern reflection seismic surveys require large amounts of computer processing, often performed on supercomputers or on computer clusters.
Hydrocarbon Exploration
Reflection seismology, or 'seismic' as it is more commonly referred to by the oil industry, is used to map the subsurface structure of rock formations. Seismic technology is used by geologists and geophysicists who interpret the data to map structural traps that could potentially contain hydrocarbons. Seismic exploration is the primary method of exploring for hydrocarbon deposits, on land, under the sea and in the transition zone (the interface area between the sea and land). Although the technology of exploration activities has improved exponentially in the past 20 years, the basic principles for acquiring seismic data have remained the same.
In simple terms and for all of the exploration environments, the general principle is to send sound energy waves (using an energy source like dynamite or Vibroseis) into the Earth, where the different layers within the Earth's crust reflect back this energy. These reflected energy waves are recorded over a predetermined time period (called the record length) by using hydrophones in water and geophones on land. The reflected signals are output onto a storage medium, which is usually magnetic tape. The general principle is similar to recording voice data using a microphone onto a tape recorder for a set period of time. Once the data is recorded onto tape, it can then be processed using specialist software which will result in processed seismic profiles being produced. These profiles or data sets can then be interpreted for possible hydrocarbon reserves.
Surveying Land
Land crews tend to be quite large entities, employing anywhere from a few hundred to a few thousand people. They normally require substantial logistical support to cover not only the seismic operation itself, but also to support the main camp (for catering, waste management and disposal, camp accommodations, washing facilities, water supply, laundry etc), fly camps (temporary camps set up away from the main camp on large land seismic operations, for example where the distance is too far to drive back to the main camp with vibrator trucks), all of the crews vehicles (maintenance, fuel, spares etc), security, possible helicopter operations, restocking of the explosive magazine, medical support and many other logistical and support functions.
Land surveys require crews to deploy the hundreds or thousands of geophones necessary to record the data. Most surveys today are conducted by laying out a two-dimensional array of geophones together with a two-dimensional pattern of source points. This allows the interpreter to create a three-dimensional image of the geology beneath the array, so these are called 3D surveys. Less expensive survey methods use one-dimensional lines of geophones that only allowed the interpreter to make two-dimensional cross-sections.
Reflection seismology (or seismic reflection) is a method of exploration geophysics that uses the principles of seismology to estimate the properties of the Earth's subsurface from reflected seismic waves. The method requires a controlled seismic source of energy, such as dynamite/Tovex, a specialized air gun or vibrators, commonly known by their trademark name Vibroseis. By noting the time it takes for a reflection to arrive at a receiver, it is possible to estimate the depth of the feature that generated the reflection. In this way, reflection seismology is similar to sonar and echolocation.
Reflection Experiments
A reflection experiment is carried out by initiating a seismic source (such as a dynamite explosion) and recording the reflected waves using one or more seismometers. On land, the typical seismometer used in a reflection experiment is a small, portable instrument known as a geophone, which converts ground motion into an analog electrical signal. In water, hydrophones, which convert pressure changes into electrical signals, are used. As the seismometers detect the arrival of the seismic waves, the signals are converted to digital form and recorded; early systems recorded the analog signals directly onto magnetic tape, photographic film, or paper. The signals may then be displayed by a computer as seismograms for interpretation by a seismologist. Typically, the recorded signals are subjected to significant amounts of signal processing and various imaging processes before they are ready to be interpreted. In general, the more complex the geology of the area under study, the more sophisticated are the techniques required to perform the data processing. Modern reflection seismic surveys require large amounts of computer processing, often performed on supercomputers or on computer clusters.
Hydrocarbon Exploration
Reflection seismology, or 'seismic' as it is more commonly referred to by the oil industry, is used to map the subsurface structure of rock formations. Seismic technology is used by geologists and geophysicists who interpret the data to map structural traps that could potentially contain hydrocarbons. Seismic exploration is the primary method of exploring for hydrocarbon deposits, on land, under the sea and in the transition zone (the interface area between the sea and land). Although the technology of exploration activities has improved exponentially in the past 20 years, the basic principles for acquiring seismic data have remained the same.
In simple terms and for all of the exploration environments, the general principle is to send sound energy waves (using an energy source like dynamite or Vibroseis) into the Earth, where the different layers within the Earth's crust reflect back this energy. These reflected energy waves are recorded over a predetermined time period (called the record length) by using hydrophones in water and geophones on land. The reflected signals are output onto a storage medium, which is usually magnetic tape. The general principle is similar to recording voice data using a microphone onto a tape recorder for a set period of time. Once the data is recorded onto tape, it can then be processed using specialist software which will result in processed seismic profiles being produced. These profiles or data sets can then be interpreted for possible hydrocarbon reserves.
Surveying Land
Land crews tend to be quite large entities, employing anywhere from a few hundred to a few thousand people. They normally require substantial logistical support to cover not only the seismic operation itself, but also to support the main camp (for catering, waste management and disposal, camp accommodations, washing facilities, water supply, laundry etc), fly camps (temporary camps set up away from the main camp on large land seismic operations, for example where the distance is too far to drive back to the main camp with vibrator trucks), all of the crews vehicles (maintenance, fuel, spares etc), security, possible helicopter operations, restocking of the explosive magazine, medical support and many other logistical and support functions.
Land surveys require crews to deploy the hundreds or thousands of geophones necessary to record the data. Most surveys today are conducted by laying out a two-dimensional array of geophones together with a two-dimensional pattern of source points. This allows the interpreter to create a three-dimensional image of the geology beneath the array, so these are called 3D surveys. Less expensive survey methods use one-dimensional lines of geophones that only allowed the interpreter to make two-dimensional cross-sections.
SEISMA ENERGY RESEARCH, AVV
When called upon to bring our partners preeminent and technically sound state-of-the-art oil and gas-drilling programs, Seisma Energy Research, AVV (formerly Seisma Oil Research, LLC) continues to deliver - barrel upon barrel. Seisma Energy Research, AVV was conceived, engineered and developed to become a global conduit for an increasingly demanding industry. Seisma's focus continues to be on expanding partnerships and opening world markets.
Through our unique corporate structure we are able to offer opportunities to prospective partners and clients that have, until our arrival in the market place, been historically unattainable by many around the globe. Supported by decades of executive experience, industry knowledge and the best technology has to offer, we continue to develop and expand our partnerships and our portfolio of energy focused investments.
Seisma Energy’s principal responsibility to its clients is to intelligently acquire, operate, explore, exploit and develop oil and gas properties. Our portfolio of projects include production, exploration, pipelines, water rights, and a new value added emphasis on renewable energies such as ethanol and bio-diesel. We continually strive to be on the cutting edge of our industry and among its elite leaders.
Our group’s operations are carried out predominantly in the Mid-Continent Region, Permian Basin, and Gulf Coast/Gulf of Mexico. Our partners are positioned around the globe, and by having preferential access to our research they are enabled to actively participate in our growth. Our success is wholly based on the enthusiasm, commitment, and talent of our people. The ethos of our corporate culture is one of integrity, innovation, accountability and team effort.
Through our unique corporate structure we are able to offer opportunities to prospective partners and clients that have, until our arrival in the market place, been historically unattainable by many around the globe. Supported by decades of executive experience, industry knowledge and the best technology has to offer, we continue to develop and expand our partnerships and our portfolio of energy focused investments.
Seisma Energy’s principal responsibility to its clients is to intelligently acquire, operate, explore, exploit and develop oil and gas properties. Our portfolio of projects include production, exploration, pipelines, water rights, and a new value added emphasis on renewable energies such as ethanol and bio-diesel. We continually strive to be on the cutting edge of our industry and among its elite leaders.
Our group’s operations are carried out predominantly in the Mid-Continent Region, Permian Basin, and Gulf Coast/Gulf of Mexico. Our partners are positioned around the globe, and by having preferential access to our research they are enabled to actively participate in our growth. Our success is wholly based on the enthusiasm, commitment, and talent of our people. The ethos of our corporate culture is one of integrity, innovation, accountability and team effort.
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