Final Exam Flashcards by Philippe Lacoste

List in order the variables that move oil prices:

1) Consumption
2) Production
3) Inventories
4) Spare Production Capacity
5) Geopolitical Risk
6) Market Variables

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The most important variable in the communications process is?

Feedback

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List the 4 types of casing used in a well:

1) Conductor Pipe
2) Surface Casing
3) Intermediate Casing
4) Production Casing

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What are the 4 types of drilling contracts:

1) Footage Contract
2) Daywork Contract
3) Turnkey Contract
4) Combination Agreement

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What was the first well in the US called and when was it Drilled?

The Drake Well

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An “Open-hole” or “Barefoot completion” is one without a:

1) Production Casing

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A LACT (Lease Automatic Custody Trasfer) unit can:

1) Measure and record volume of oil.
2) Detect presence of water in oil stream.
3) Determine and record oil temperature.
4) Verify the accuracy of flow meters.
5) Determine the S&W content and API gravity of oil sold.

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List drilling personnel in order of importance:

1) Tool-pusher
2) Driller
3) Derrick-hand
4) Floor-hand
5) Roustabout

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List 4 major components of a drilling system:

1) Hoisting system
2) Rotating system
3) Circulating system
4) Power System

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What is a Shale Shaker?

Where mud and cuttings flow out of the return line onto a vibrating screen called and Shale Shaker.

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Define a multiple completing:

It allows the operator to produce oil/gas from 2 or more formations simultaneously.

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Define a subsurface safety valve:

It is attached to the tubing string fairly close to the surface and allows fluid to flow from the well in normal operations; however, if the surface equipment is damaged and well fluids start flowing into the air, water, or on the ground, the safety valve closes to prevent further escape of fluids.

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When does a gas cap exist in a reservoir?

When the pressure in the reservoir is below its bubble point, thus gas can escape from the oil.

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An active water drive is preferable because:

The pressure in the reservoir remains constant during production, as the oil produced is replaced by water; thus maintaining reservoir pressure.

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A joint of drill pipe is a) _________ ft, and a stand is approximately b) __________ ft.

a) 30
b) 90

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Who supervised the first drilling operation for Seneca Oil Company of New Haven. Got the job in part because he was a retired railroad conductor who had a pass and could ride the rails for free. He invented a method of driving a pipe down to protect the integrity of the well bore (conductor pipe), which allowed the operations to reach 69.5 feet of depth. Unfortunately, he did not patent his invention. (Drake became known as the Father of the Petroleum Industry.)

Edwin L. Drake (Colonel)

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Who quit school at age 16 and became a bookkeeper, who realized that there was money to be made in the new petroleum industry. As such, he began his career in refining and in 1865 formed Standard Oil Company. By 1879, Standard Oil controlled 90% of America’s refining capacity, and by the end of the 19th century, Standard Oil’s dominance had grown to include exploration, production, and marketing.

John D. Rockefeller

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Who was an investigative reporter for McClure’s Magazine who wrote “The History of the Standard Oil Company”, which exposed many unfair practices that allowed Standard Oil to monopolize the early petroleum industry.

Ida Tarbell

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Who forced the merger between Royal Dutch and Shell and served as the general manager of the Royal Dutch Shell group of companies until his retirement in 1936.

Henri Deterding

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Who formed Shell Transport and Trading Company in 1897. Became Lord Mayor of London. Oversaw the merger of Shell and Royal Dutch to for Royal Dutch Shell.

Marcus Samuel

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What are the 2 primary tools used in Well Logging?

1) SP- Spontaneous Potential
2) GR- Gamma Ray

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The neutron/density indicates:

1) Shale: When the neutron reads High and the density reads Low.
2) Gas: When the Neutron reads Low and the density reads High.
3) Liquid: when both read about the same.

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While the Gama Ray can show that we are in a liquid. The Sw(Water Saturation) and So(Oil Saturation) can only be calculated with the:

Deep Induction Curve Log

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The tool that shows in gauge to hole diameter when in sandstone and out of gauge when shale is the:

Caliper log

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High (GR) indicates a) __________, and low (GR) indicates b) ________.

a) Shale b) Sandstone

Who was MOSOP?

Movement for the Survival of the Ogoni People began with the establishment of the “Ogoni Bill of Rights” to provide Ogoni people control of Ogoni affairs, adequate representation in all Nigerian national institutions, so as to empower the Ogoni people with the ability to protect the Ogoni environment and ecology from further degradation.

15) When Milton Friedman wrote, “ … there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game…” How was Shell, in Case Study #3: Shell’s Human Rights Violations in Nigeria, not following the rules of the game?

The rules of the game are composed of “basic rules of the society, which include both law and ethical custom. Because laws are subject to interpretation, and law and ethics vary from country to country, business must obey the law, but at the same time, businesses should act ethically in the absence of set laws and mitigate any damages caused by their actions—both socially and environmentally.

Which country is the only OPEC member in the Western Hemisphere.

Venezuela

25) A conventional reservoir is made up of a) _________, b) ____________, and c) ___________, which have porosity and permeability. A shale reservoir is an unconventional reservoir, as it has porosity but little permeability.

a) Sandstone b) Limestone c) Dolomite

26) ExxonMobil, BP, Chevron are examples of an:

IOC (International Oil Company)

27) Saudi Aramco, PdVSA, Pemex are examples of an:

NOC (National Oil Company)

_______________, work to optimize production of oil & gas via proper well placement, production rates, and oil recovery techniques.

Reservoir Engineer

_______________, Manage Technical aspects of drilling, exploratory production, and injection wells.

Drilling Engineer

________________, Includes subsurface engineers, manage the interface between the reservoir and the well, including perforations, sand control, downhole flow control, and downhole monitoring equipment; evaluate artificial lift methods; and also select surface equipment that separates the produced fluids.

Production Engineer

________________, Evaluates the well to determine the ability of the borehole to produce petroleum.

Well Log Analyst

Porosity =

Vp/Vb (Vp=volume of pore space; Vb=bulk volume of the rock/formation)

Porosity between grains are:

Inter-granular porosity

Porosity within grains are:

Intra-granular porosity

The main factors that affect porosity in a sandstone reservoir are:

1) packing – the size of the sand grains do not affect porosity; however, the range of variation of sand grains affect porosity; 2) Shape – if sand grains within a reservoir are elongated or flat and are packed with their flat surfaces together then porosity might be low compared to a reservoir with spherical shaped sand grains; 3) Deposition – arrangement in which grains were laid down and compacted, amount of clay or other materials that cements the sand grains together.

33) Define Permeability:

A rock is permeable when its pores are connected, so that fluids can flow through it by moving from one pore to another pore.

34) Define Effective Porosity:

The interconnected pore volume or void space in a rock that contributes to fluid flow or permeability in a reservoir. Effective porosity excludes isolated pores and pore volume occupied by water adsorbed on clay minerals or other grains. Total porosity is the total void space in the rock whether or not it contributes to fluid flow. Effective porosity is typically less than total porosity.

Define Inorganic Theory:

The inorganic theory holds that petroleum is either left over from the formation of the solar system or was formed later deep within the earth when hydrogen and carbon came together, as a result of heat and pressure on minerals.

Define Organic Theory:

The organic theory hold that petroleum formed from the remains of plants and animals. Most geologist believe that the plants and animals that formed petroleum were very small, such as plankton & algae that inhabited ancient seas.

The two prime types of hydrocarbon traps are:

1) Structural Traps, which occur when the reservoir formation deforms in some way, (anticline, fault, and salt dome traps) 2) Stratigraphic Traps, which are traps in which porosity and/or permeability has changed within a formation or where a nonporous lay seals off the top of a reservoir, (unconformity traps and change in permeability traps.

What are the 3 types of Reservoir Drives:

1) gas cap drive 2) solution gas drive 3) water drive **combination of two or more drive mechanism.**

Define Wetting Water:

Single molecules of water that surround marine sand grain in reservoir. *Takes up space.*

Density is measured in:

Degrees API

Crudes with < 0.7% Sulfur Content:

Sweet Crudes

Crudes with > 0.7% Sulfur Content:

Sour Crudes

Crudes with a TAN (Total Acid Number) > 0.07% are:

Highly corrosive to Equipment.

Weight/Volume =

Density

The measure of density of a substance compared to the density of water at standard temperature and pressure is:

Specific Gravity

Measurment of density is defined by:

American Petroleum Institute

API fixes the specific gravity of water at:

1 gram/cubic centemeter

141.5/(131.5 + API°) =

Specific Gravity

(141.5/Specific Gravity)-131.5 =

API Gravity

Specific Gravity of water is a) _________, and the API gravity of water is b) ___________.

a) 1 b) 10

light Crud >a) __________: Medium ceude between b) _________ &__________: Heavy < c) ____________: Extra Heavy < d) ____________:

a) 31.1 b) 22.3 & 31.1 c) 22.3 d)10

____________ increases with decreases in API Gravity.

Viscosity

An agreement between the mineral owner and the petroleum company:

Lease

The mineral owner:

Lessor

The party who grants exclusive rights to the lessee in exchange for consideration:

Lessee

The share of production that the lessor receives:

Royalty

In a lease there is a primary term, which is a time that drilling must commence or the lessee must pay a Delay Rental Fee each year to prevent the lease from expiring:

Delay Rental Fee

Transfers the described mineral interest from the lessor to the lessee, for consideration:

Granting Clause

Is the benefit, usually in dollars, to the lessor and is required by some states to make a contract valid:

Consideration

Allows the lessee to include off-shaped or small wedges of land inadvertently left out or incorrectly described. Usually limited to 10% of land described in the lease:

Mother Hubbard Clause

States the time period of the lessee’s interest:

Habendum Clause

Is a share of production profits free of expenses, except for taxes and marketing expenses:

Royalty

Is used on gas wells to maintain the lease by paying money to the lessor in lieu of royalty, on actual production, when a well is shit-in and not producing:

Shut-in Royalty Clause

Pooling is the combining of small or irregular land tracts into a single unit large enough to meet state spacing regulations for drilling. Unitization is the combining of leased tracts on a field-wide or reservoir-wide bases, so that the tracts may be handled as a single unit for operations:

Pooling & Unitization Clause

Gives the lessee three choices, either to 1) drill a well to hold the lease, 2) pay on an annual basis to delay drilling until later in the primary term of the lease, or 3) terminate the lease by neither drilling nor paying delay rental. (The lessee might include a paid-up provision, where the rental payment is included in the initial cash bonus:

Delay Rental Clause

This clause allows the lessee to keep the lease for a specified time period, if the well is not productive (dry hole). At the conclusion of the specified time period the lessee must either begin to drill a new well or pay the delay rental to hold the lease:

Dry Hole Clause

The clause allows the operator to develop the lease beyond the primary term of the lease, up to the number of wells permitted by law:

Continuous Development Clause

The clause allows transfer of interest to another party, in the lease, by either the lessor or the lessee:

Assignment Clause

This clause makes the lessee liable for damages or losses suffered because of drilling or production:

Damage Clause

This provision allows the lease to remain in force if the lessee cannot meet the lease conditions because of delays caused by act/s of God. (An act of God could include, hurricanes and other natural disasters):

Force Majeure Provision

Guarantees clear title to the lease; however, there is usually a proportionate reduction clause, which covers situations where the lease owns les land/mineral rights than is described on the original property description:

Warranty Clause

A contract of sale of oil or gas to a purchaser who is directed to pay for the oil or gas products according to the proportions set out in the division order:

Division Order

The overriding royalty is like a royalty in that it is an interest in oil and gas after it is produced from the land. It differs from royalty interest in that it comes out of the working interest or that part of the production that goes to the person who has acquired the lease rather than to the landowner. Overriding royalty terminates when the oil and gas lease terminates and it is not a perpetual royalty:

Overriding Royalty

An agreement whereby the owner of a lease who does not wish to drill at the time agrees to assign the leasehold interest, or some part of it, to a third party who does wish to drill, conditional on the third party’s drilling a well within the expiration date of the primary term of the lease.:

Farm-Out

A contract where by two or more co-owners of the operating rights in a tract of land join to share the cost of exploration and possible development:

Joint Operating Agreement

Rule applied by some courts that gives title to oil and gas produced from a tract of land to the party reducing it to possession:

Rule of Capture

An agreement identical to a farm-out, with the operator as the third party. The operator takes the farm-in:

Farm-in

A method of stimulating production by increasing the permeability of the producing formation. Under extremely high hydraulic pressure, a fluid (such as water, oil, alcohol, dilute hydrochloric acid, liquefied petroleum gas, or foam) is pumped downward through tubing or drill pipe and forced into the perforations in the casing. The fluid enters the formation and breaks it. Propping agents or proppants, such as sand grains, aluminum pellets, glass beads, or similar materials are carried in suspension by the fluid into the cracks or fractures. When the pressure is released at the surface, the fracturing fluid returns to the well and the fractures partially close on the proppants, leaving channels for oil to flow through to the well. This process is often called a frac job:

Formation Fracturing

Treating oil-bearing limestone or other formations with acid for the purpose of increasing production. Hydrochloric or other acid is injected into the formation under pressure. The acid etches the rock enlarging the pore spaces and passages through which the reservoir fluids flow. The acid is held under pressure for a period of time and then pumped out, after which the well is swabbed and put back into production. Chemical inhibitors combine with the acid to prevent corrosion of the pipe:

Acidizing

Heavy, flanged steel fittings connected to the first string of casing; they provide a housing for slips and packing assemblies, allow suspension of intermediate and production strings of casing, and supply the means for the annulus to be sealed off:

Casinghead

A flanged fitting that supports the tubing string, seals off pressure between the casing and the outside of the tubing, and provides a connection that supports the Christmas tree:

Tubing Head

The control valves, pressure gauges, and chokes assembled at the top of a well to control the flow of oil and gas after the well has been drilled and completed:

Christmas Tree

Know what Beam Pumping, Subsurface Hydraulic Pumping, Electric Submersible Pumping, and Gas Lift are and how they are used.

Secondary Recovery

A commonly used on-land artificial-lift method for petroleum production. A Beem Pumping unit is a machine designed specifically for sucker rod pumping using a horizontal arm (walking beam) that is worked up and down by a rotating crank to produce reciprocating motion.

Beam Pumping

A device below the earth’s surface that lifts oil from wells without the use of sucker rods by using special hydraulic fluid.

Subsurface Hydraulic Pump

A submersible pump that uses electricity to turn impellers in the pump to produce oil.

Electric Submersible Pump

The process of raising or lifting fluid from a well by injecting gas down the well through tubing or through the tubing-casing annulus. Injected gas aerates the fluid to exert less pressure than the formation does; consequently, the higher formation pressure forces the fluid out of the wellbore. Gas might be injected continuously or intermittently, depending on the producing characteristics of the well and the arrangement of the gas-lift equipment.

Gas Lift

A method of enhanced oil recovery in which water is injected into a reservoir to remove additional quantities left behind after primary recovery. Usually, water flooding involves injecting water through well specially set up for water injection and removing water and oil from production wells drilled adjacent to the injection wells.

Waterflooding

Methods used in secondary recovery of fluids from a reservoir by injecting fluids that are miscible with reservoir fluids. A miscible fluid is one capable of being mixed in any ratio without separation of the two phases.

Miscible Process

Types of improved recovery in which heat is introduced into a reservoir to lower the viscosity of heavy oils and to facilitate their flow into producing wells. The pay zone might be heated by injecting steam (steam drive) or by injecting air and burning a portion of the oil in place.

Thermal Processes

A device or mechanism that separates the well fluids into liquid and gas. The liquid (oil, emulsion, or water) goes out the bottom; the gas goes out the top.

Two-Phase Separator

Separator that separates well fluids into oil or emulsion, gas, and water.

Three-Phase Separator

Vessels that heat an emulsion and remove water and gas from the oil to raise it to a quality acceptable for pipeline transmission. A heater-treater is a combination of heater, free-water knockout, and oil and gas separator.

Heater Treaters

A cylinder consisting of several perforated trays with bubble caps mounted over the perforations and functioning as part of a glycol dehydrator system.

Glycol Dehydrator

A test of the rate at which a well can produce oil or gas.

Potential Test

A test to determine completion zone pressure.

Bottomhole Pressure Test

A test that shows flow rates on pressure in the zone.

Productivity Test

A test that measure standing fluid level in a well.

Fluid Level Determination Test

A test that reads temperature at and near the bottom of the well.

Bottomhole Temperature Test

Produced water requires special care, as it usually is salt water, or brine, and contains trace amounts of oil and scale. This water should be allowed time to settle in the tank where air is excluded. If wells are available, the brine can then be pumped back into a producing reservoir.

Water Disposal

A mineral deposit that precipitates out of water and adheres to the inside of pipes, heaters, and other equipment.

Scale

Any of a variety of complex chemical or electrochemical processes by which metal is destroyed through reaction with its environment. For example, rust is carrion.

Corrosion

Final Exam Flashcards

(109 cards)