Oil and Gas Industry Overview
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Questions and Answers

What is the primary purpose of artificial lift in the upstream sector?

  • To reduce the viscosity of oil and gas.
  • To prevent the formation of gas hydrates in the wellbore.
  • To enhance production by bringing fluids to the surface. (correct)
  • To increase the reservoir's natural drive energy.
  • To provide a stable platform for drilling operations.
  • Which of these is NOT a reservoir type mentioned in the text as one of the top four produced reservoirs in the United States?

  • Volatile oil reservoirs
  • Coal bed methane reservoirs (correct)
  • Gas condensate reservoirs
  • Oil reservoirs
  • Dry gas reservoirs
  • What is the primary difference between conventional and unconventional wells?

  • Conventional wells require less complex drilling techniques than unconventional wells. (correct)
  • Conventional wells produce oil, while unconventional wells produce natural gas.
  • Conventional wells rely on natural reservoir pressure, while unconventional wells utilize artificial lift.
  • Conventional wells are less environmentally friendly compared to unconventional wells.
  • Conventional wells are located on land, while unconventional wells are located offshore.
  • Which of the following is NOT a product typically produced by the downstream sector?

    <p>Crude oil (B)</p> Signup and view all the answers

    Which of the following is NOT a feature of dual-completed wells?

    <p>The use of hydraulic fracturing to enhance production (B)</p> Signup and view all the answers

    What was the primary motivation for the development of the first oil drilling rig in 1859?

    <p>Finding an alternative to the dwindling supply of whale oil (C)</p> Signup and view all the answers

    Which sector of the oil and gas industry is responsible for connecting petroleum-producing areas with customer populations?

    <p>Midstream (E)</p> Signup and view all the answers

    What is the primary role of the downstream sector in the oil and gas industry?

    <p>Processing raw materials into refined products (A)</p> Signup and view all the answers

    What is the primary reason wells need to be perforated?

    <p>To allow resources to enter the wellbore. (C)</p> Signup and view all the answers

    Which ratio determines if a well is classified as an oil well or a gas well?

    <p>The ratio of oil to water and fluids to gas. (A)</p> Signup and view all the answers

    Which component is NOT typically found in unrefined natural gas?

    <p>Ethyl alcohol (D)</p> Signup and view all the answers

    In which sector is PSIG pressure measurement more predominantly used?

    <p>Upstream sector (D)</p> Signup and view all the answers

    Which of the following is NOT listed among the top forms of energy production in the United States?

    <p>Coal energy (A)</p> Signup and view all the answers

    Flashcards

    Upstream Oil & Gas

    The process of finding and extracting crude oil and natural gas from the earth.

    Midstream Oil & Gas

    The process of processing, transporting, and storing crude oil and natural gas.

    Downstream Oil & Gas

    The final stage of the oil and gas industry, where refined products are created and sold to consumers.

    Reservoir

    A type of subsurface rock formation that contains hydrocarbons, such as oil and gas.

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    Artificial Lift

    A technique used to increase oil and gas production from wells when natural pressure is insufficient.

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    Dual-Completed Well

    A well that produces from two different rock formations through the same wellbore.

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    Hydrocarbon Type

    The type of hydrocarbon produced from a reservoir.

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    Pay Zone

    A zone within a formation that contains economically viable amounts of oil or gas.

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    Well Perforation

    The process of creating holes in the well casing to allow oil and gas to flow into the wellbore. This typically occurs during the completion stage after drilling.

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    Oil Well Stream Composition

    The composition of fluids produced from an oil well. It can include oil, water, gas, and other substances. The ratio of oil to water and gas determines whether a well produces primarily oil or gas.

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    Natural Gas Composition

    Unrefined natural gas contains various components like methane, ethane, propane, and butanes, among others. These components are separated and processed before being utilized.

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    PSIA and PSIG

    Two common pressure measurement units in the oil and gas industry. PSIA (pounds per square inch absolute) measures pressure relative to a vacuum, while PSIG (pounds per square inch gauge) measures pressure relative to atmospheric pressure.

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    Top US Energy Sources

    The top 10 sources of energy production in the U.S. The most prominent include petroleum, natural gas, nuclear energy, renewable sources like hydroelectric, wind, solar, and geothermal, as well as biomass.

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    Study Notes

    Early Days of the Oil and Gas Industry

    • The first successful oil well, drilled by Edwin Drake, was completed on August 27, 1859.
    • This marked a significant step towards replacing whale oil.
    • Early oil production sites differed in location and characteristics from modern facilities.
    • Artificial lift methods have been essential to the upstream sector since its inception.

    Three Oil and Gas Industry Sectors

    • The oil and gas industry comprises three main sectors: upstream, midstream, and downstream.
    • The upstream sector focuses on exploring and extracting crude oil and natural gas.
    • The midstream sector processes, stores, markets, and transports crude oil, natural gas, and natural gas liquids (NGLs).
    • NGLs include ethane, propane, butanes, and sulphur.
    • Midstream companies connect oil and gas production sites with consumers.
    • The downstream sector encompasses oil refineries, petrochemical plants, and retailers of petroleum products and natural gas distribution.
    • Downstream products include gasoline, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides, pharmaceuticals, and natural gas propane.

    Upstream Sector: Drilling and Reservoir Types

    • The upstream sector starts with drilling operations for exploration and production.
    • The common reservoirs in the U.S. include oil, volatile oil, dry gas, and gas condensate.
    • Each reservoir type has unique characteristics, producing different hydrocarbon mixtures.
    • Formation pay zones vary, which influences exploration and production decisions.

    Upstream Sector: Well Types

    • Common well types include conventional gas, shale gas, coal bed methane, and tight gas wells.
    • Unconventional wells (like shale gas) require special techniques like fracturing.

    Upstream Sector: Artificial Lift

    • Artificial lift systems are used when natural reservoir pressure is insufficient.
    • These systems enhance production by raising fluids to the surface, mitigating pressure constraints.
    • Pumping units maintain production as natural reservoir pressure diminishes.

    Dual-Completed Wells

    • Dual-completed wells extract resources from two different formations using a single wellbore and wellhead.

    Well Completion: Perforation

    • Wells are perforated to allow reservoir fluids to enter the wellbore.
    • The perforation process often occurs during well completion.

    Oil Well Stream Composition

    • Oil wells produce a mix of oil, water, gas, and potentially other substances.
    • The oil-to-water and fluid-to-gas ratio defines whether a well is classified as an oil well or a gas well.

    Natural Gas Composition

    • Natural gas contains methane, ethane, propane, butanes, pentanes, and various trace elements.

    Different Pressure Measurements

    • PSIA (pounds per square inch absolute) and PSIG (pounds per square inch gauge) are common pressure units.
    • PSIA is more significant in midstream, whereas PSIG is often used in upstream operations.

    Top Forms of Energy Production in the US

    • Top energy sources in the U.S. include petroleum, nuclear, natural gas, hydro, wind, solar, geothermal, biomass, and wood.

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    Description

    Explore the early days and key sectors of the oil and gas industry. Learn about the origins of drilling, the motivations for oil extraction, and the differences between upstream, midstream, and downstream operations. This quiz offers insights into the evolution and structure of one of the world's most vital industries.

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