ECONOMICS AND GEOPOLITICS OF OIL AND GAS

Introduction to Oil and Gas Industry

Historical

Production of Oil Exploration and Processing Petroleum Industry Development

Petroleum

Lesson objectives :
The students should be able : to describe the history of petroleum discovery and production. to explain and describe the exploration, processing and development of petroleum industry. to identify the importance of petroleum industry.

Overview
What is Petroleum? Petroleum Uses. Petroleum Industry History

What is Petroleum ?
Derived from the Latin; petra and oleum, means literally rock oil Hydrocarbons that occur widely in the sedimentary rocks in the form of gases, liquids, semisolids, or solids.

What is Petroleum?.

What is Petroleum?
Petroleum is a naturally occurring mixture of

Petroleum Classes

hydrocarbons, generally in a liquid state, which may also include compounds of sulfur, nitrogen, oxygen, metals, and other elements.
Each petroleum variety has a unique mix of

Light and Heavy Petroleum Sweet and Sour Petroleum API Grade

molecules, which define its physical and chemical properties, like color and viscosity.

What is Petroleum?
In more specific terms, petroleum has also been defined (ITAA, 1936) as:
any naturally occurring mixture of one or

more hydrocarbons, whether in a; liquid, gaseous, or solid state, and one or more of the following: hydrogen sulfide, helium, metal and carbon dioxide.

Petroleum and some of its components

Lets recap.

Petroleum Uses
Automobiles: fueled with petroleum, tires

What are the uses of Petroleum?. Why is Oil so Important in Todays World?

of synthetic rubber made from materials derived from crude oil.

Highways: surfaced with asphalt

manufactured from petroleum.

Dresses: made of synthetic fabrics, the

base of some of which is petroleum

Homes: roofed with petroleum asphalt.

Petroleum Usescontd
Cosmetics, perfumes, and pharmaceutical

History of Oil and Gas Industry

History of Crude Oil History of Natural Gas History of Oil and Gas In Malaysia

products: the bases of which may be petroleum.

Food : brought into our kitchens is

protected by petroleum-wax-impregnated wrappings or boxes.

Oil and Gas Industry

Oil Well Gas Well

What do you understand/know by Oil and Gas Industry?.....

History of Petroleum
Modern petroleum industry began in 1859

History of Crude Oil

Crude oil is NOT a uniform material. Its composition may vary with the location and age of the oil field and even with the depth of the individual well. In order to simplify the transportation problem, crude oils obtained from many wells and often from several oil fields are blended before they reach the refinery. This tends to homogenize the refinery input but does not make it uniform.

with the discovery and subsequent commercialization of petroleum in Pennsylvania.

During the 6,000 years of its use, the

importance of petroleum has progressed from the relatively simple use of asphalt from Mesopotamian seepage sites to the presentday refining operations that yield a wide variety of petrochemicals products

History of Natural Gas

Historically, natural gas was discovered as a

History of Natural Gas

The discovery of natural gas dates from ancient

consequence of prospecting for crude oil.

Natural gas was often an unwelcome by-product,

times in the Middle East.

Thousands of years ago, it was noticed that

as natural gas reservoirs were tapped in the drilling process and workers were forced to stop drilling to let the gas vent freely into the air.
Now, and particularly after the crude oil shortages

of the seventies, natural gas has become an important source of energy in the world.

natural gas seeps ignited by lightning created burning springs. In Persia, Greece, or India, people built temples around these eternal ames for their religious practices.

History of Natural Gas

However, the energy value of natural gas

History of Natural Gas

In 1821 in Fredonia, United States, residents

was not recognized until approximately 900 BC in China, and the Chinese drilled the rst known natural gas well in 211 BC.
In Europe, natural gas was unknown until it

observed gas bubbles rising to the surface from a creek.

William Hart, considered as Americas father

was discovered.
In Great Britain in 1659, although it was not

of natural gas, dug the rst natural gas well in North America

commercialized until about 1790.

History of Production Oil

Modern petroleum industry began in 1859 with the discovery and subsequent commercialization of petroleum in Pennsylvania.

Wells
Why we drill a well ?
to gather information

- for subsurface evaluation to produce hydrocarbons - to produce oil or gas to inject gas or water - for reservoir pressure maintenance - for gas conservation

Life of Field Cycle:

Life of Field Cycle:

An exploration well is the ONLY

way to prove that hydrocarbons are present.

Followed by appraisal and

development wells.

When was the first well drilled? First well drilled in Malaysia?

Petroleum History: When was the first well drilled?

In 1858, one such individual, a 39 year old carriage maker from Hamilton, Ontario, named James Miller Williams made the first major commercial oil discovery in North America at Oil Springs, Ontario. Drilling in "gum beds" in Lambton County, 25 km southeast of Sarnia, he struck oil at a depth of only 18 metres.

Petroleum History: When was the first well drilled in Malaysia?

First well drilled in Malaysia was in 1910 - drilled by Shell in Miri (Canada Hill) also called Grand Old Lady PCSB was established on 11 May 1978 First well drilled by PCSB was for the Duyong field in Aug 1980

First commercial well was drilled in USA in 1859

- drilled by Col Edwin L. Drake

The Grand Old Lady

Duyong Platform Complex (Gas Field)

Shells Bullwinkle
Worlds tallest offshore structure, Gulf of Mexico 1,353 water depth Production began in 1989 45,000 b/d 80MM scf/d

Rigs Today..

Petroleum Exploration and Processing

Petroleum Exploration
Introduction Historical Review of Petroleum

Petroleum Exploration Introduction

Key exploration objective is to find commercial quantities of oil and/or gas i.e. reserves

Exploration Petroleum Exploration in Malaysia

Historical Review of Petroleum Exploration

Who controls the power of these companies? How?

Petroleum Exploration in Malaysia

Petroleum Flow Chart from Well through the Refinery

Petroleum Refining Industry

Petroleum Processing

Examples of major products produced refinery

Overview of Petroleum Refinery Industry in Malaysia

Overview of Petrochemical Industry in Malaysia

Overview of Petrochemical Industry in Malaysia

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Petroleum Industry Development

Development of Oil and Gas Industry in Malaysia:

Malaysia has the world's 13th largest natural gas reserves and 24th largest crude oil reserves. In 2006, Malaysia produced 6, 439.6 trillion cubic feet per day of natural gas and 690,000 barrels of oil equivalent per day of crude oil. Malaysia also has the world's largest production facility at a single location of liquefied natural gas with production capacity of 23 million metric tonne per year.

The birth of National Company

Three major petrochemical zones have

been established in Malaysia Kertih, Terengganu; Gebeng, Pahang; and Pasir Gudang/Tanjung Langsat, Johor.

Other petrochemical plants in Malaysia such as ammonia and urea plants in Bintulu, Sarawak and Gurun, Kedah; acrylonitrile butadiene styrene plant in Pulau Pinang; methanol plant in Labuan,Sabah

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 The presence of world renowned

petrochemical companies, such as Dow Chemical, BP, Shell, BASF, Eastman Chemicals, Toray, Mitsubishi, Idemitsu, Polyplastics, Kaneka, Dairen and West Lake Chemical already did investment for petrochemical industries in Msia.
Most of these companies are working in

collaboration with Malaysia's national petroleum company, PETRONAS.

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