Three Days - Upstream Thru Downstream
Key Learning Objectives:
After attending the course, attendees should be able to:
This is an instructor-led course presented live to groups. Questions and discussion are welcome at any time. Participants will enjoy using our electronic response card system that allows them to test their knowledge with quiz questions at the end of each topic. Each person is provided a response card and group responses are displayed real-time (no individual is singled out). These quiz sessions reinforce course content and encourage participation. Attendees will receive course binders with color copies of the slides presented.
Anyone working in or with the oil and gas industry would benefit from this course because it provides a more-comprehensive overview of the industry than can usually be obtained from on-the-job learning or even most petroleum-related coursework. Knowledge of the midstream and downstream sectors is useful even to people working primarily in the upstream sector. The course does not require any prior industry knowledge but delves into many semi-technical topics (in an easy-to-follow format) and is best for those with a strong interest in the industry.
Now, more than ever, is the time to take this course! The industry faces some difficult challenges and those working in the industry need to better understand the complexities of their environment – both in the broader market and within their workplace.
Hydrocarbons and Their Uses - Oil and gas are made of a diverse mix of hydrocarbon molecules and a basic understanding up front is useful throughout the course. Learn about hydrocarbon characteristics and understand terms such as wet/rich gas, condensate, NGL, residue gas, CNG, LNG, crude gravity, sour gas/crude and units of oil and gas measurement. Learn how crude gravity impacts refined product yields, and therefore, crude prices. See physical samples of crude oil types and get a whiff of some crude if you dare. Learn how gas plants and refineries separate hydrocarbon types, and which types have the highest value.
Sectors of the Oil and Gas Industry - Learn about the “upstream,“ “midstream,” and “downstream” sectors and key activities within each sector. Learn about “unconventional” oil and gas types such as shale and tight rock, coalbed methane and oil sands. Learn the difference between an integrated company and an independent company. Learn about companies that support the industry such as contractors and suppliers, gas processors and transporters.
Historical Background - Learn briefly how the industry began and evolved, and how the early beginnings still have an impact on the industry today.
Major Oil and Gas Producers - See a ranking of the largest oil and gas companies in the industry, their home countries, and which are integrated vs. independent. Also learn about government-owned national oil companies and how they have strongly impacted the industry by restricting access to investment opportunities.
Reserves and Production - See which countries and geographic areas have the most oil and gas reserves, which are producing the most, and observe the large disparity. Observe the historical rig count and see that activity levels are much higher in industry-friendly areas. Observe the past peaks and valleys in drilling activity and the 20-year slowdown that created a talent gap. Learn about OPEC and its impact on the marketplace. Learn how the expansion of the LNG industry has opened up many gas production opportunities around the world.
US Activities - Learn about the shale-gas revolution, how it started, how it increased gas production and lowered gas prices, how activity shifted to tight oil drilling, and how oil production rose accordingly. Discuss how that and other new sources of production have contributed to the current price environment.
Organic Source - Dispel the myth that oil and gas comes from dead dinosaurs and learn how aquatic microorganisms have dropped large amounts of organic debris to the ocean floor in various area over geologic time. Learn how some of that debris was covered and preserved in the past by fine sediments and became integrated into fine-grained sedimentary rock such as shale.
Sediments and Sedimentary Rock - Learn about sources of sediments, how sediments can accumulate into thick layers, and how buried layers form rock. Learn about the key types of sedimentary rock that are important to oil and gas and their varying characteristic and roles in a petroleum system. Examine rock samples and see them magnified live on the screen at 220x.
Geologic Time and Plate Tectonics - Learn how the earth’s surface/crust changes through a process called plate tectonics. Learn how plate tectonics changes sedimentation patterns and distorts pre-existing layers. Observe how geoscientists think the earth’s surface has changed over time, explaining the diverse locations and altered characteristics of oil and gas basins.
Oil and Gas Formation, Migration and Traps - Learn how oil and gas can form within organic-rich sedimentary rock, such as shale, and how some of it can escape the rock and migrate underground. Learn about types of underground features that can trap migrating hydrocarbons in sizeable accumulations. Learn about rock porosity and permeability that make migration and trapping possible, and see in-class demonstrations of porosity and permeability. Learn how “conventional” traps/accumulations in good-quality rock differ from “unconventional” accumulations in poor-quality rock, such as the source shale.
Exploration Methods and Tools - Watch a video that we produced explaining what geologists and geophysicists do and the methods and tools they use, depending on how much is already known about a prospective area. Hear about well logs and cores, well log correlation, outcrop analysis, satellite photos, gravity and magnetic surveys and seismic.
Seismic - Learn how seismic is acquired and used to search for conventional traps or acquire information about unconventional layers. Learn the difference between 2-D and 3-D seismic. Learn how seismic is captured offshore.
Seismic Video - See a video showing how onshore and offshore seismic are acquired.
Maps and Modeling - See types of maps that geoscientists use to review prospective areas. Learn briefly about computer models that may be built from seismic data, well log data and other information to analyze structures for both exploration and/or development.
Geology Video - See a video showing the geological origins and development challenges of a North Sea oilfield.
Economic Factors - Learn how exploration is a business and the goal is not just to find oil and gas, but to make money at it. Learn about the revenue, cost and commercial factors that must be considered in a decision to drill a well, as well as the overriding risks and opportunities that will influence the decision.
Minerals Ownership - Learn that almost all mineral rights around the world are owned by governments, regardless of who owns the surface of the land. Learn that the US is unique in that the majority of onshore rights are privately owned. Learn how mineral rights can be separated from surface rights in the US and that much of that has been done over the generations. Learn how mineral rights apply to oil and gas through the “rule of capture” and the potentially odd and/or undesirable consequences.
US Land Surveys - Learn about the “Metes and Bounds” and “Rectangular Survey System” methods used to establish land boundaries in the US.
State Regulation - Learn how states have imposed regulations to manage the consequences of rule of capture and to protect the environment, limit waste and ensure fairness. Learn some of the types of regulations including well spacing, well density, proration, permitting and monitoring. See an example of how density and spacing apply and how horizontal drilling has required changes. See a list of state regulatory agencies and hear about the myriad of other state and federal regulations that make regulatory compliance a big job.
Leasing - Learn about the most-common method used in the US for oil and gas companies to obtain rights to explore for oil and gas. Learn about the key elements of a lease including the lease term, bonus, royalty, delay rentals and the rights and obligations of the parties. Learn about pooling/unitization. Learn how unconventional plays have increased leasing costs and created more surface-use concerns and agreements.
Other Mineral Interests - Learn about overriding royalty interests and farmounts as well as how and why they are created.
Joint Ownership - Learn how mineral rights ownership is often divided among several parties and the challenges of acquiring all of the rights. Learn how oil and gas companies often end up owning interests in the same work area and must elect one party to operate under a joint operating agreement.
Land Functions - See a video explaining positions and functions in an oil company land department including landmen, lease/title analysts and division order analysts.
Leasing of US Federal Mineral Rights - Learn briefly about mineral rights owned by the US government and the agencies that management them. Learn how the Bureau of Land Management conducts onshore leasing and the Bureau of Ocean Energy Management conducts offshore leasing, See which offshore areas are open to leasing.
International Mineral Rights - Learn briefly about international forms of mineral rights contracts including Licenses/Concessions, Production Sharing Agreements and Risk Service Contracts.
Well Purpose and Design - Learn about the purposes of exploration, appraisal and development wells, how wells are planned, and vertical, directional and horizontal designs.
Drilling and Completion - Our company produced the most-comprehensive drilling and completion video available anywhere and we will show the entire 2-hour video. The video begins with a brief discussion of well-site selection and planning, followed by site preparation and rig mobilization. It then provides a guided, rig-floor view of the drilling of a horizontal well including the surface hole, long vertical section, curve section and lateral section. The video includes side tutorials to explain the rig structure, rig functions, rig crew, rig safety, casing and cementing, drilling fluid (mud), BOP and well control, drill bits, drilling tools, drill pipe, fishing, directional drilling, well evaluation techniques and more. The rig used in the video is one of the most advanced land rigs in the industry with top drive, Iron Roughneck® and automated catwalk.
The drilling portion of the video is followed by well completion. The video shows both the surface and animated-downhole process for multi-stage hydraulic fracturing. This is followed by installation of the tubing and the control values (Christmas tree). The video ends with a quick overview of gathering line hook-up and the surface facilities required to process, store and measure production.
Offshore Drilling - Learn about the different types of rigs used in offshore drilling and some of the key differences from land drilling. See an animation we produced showing how a subsea well is drilled from a floating rig.
Well Evaluation - Learn how drilled wells are evaluated to determine whether the results justify the potentially-substantial additional costs required to “complete” the well and establish production. Learn briefly how evaluation data can be obtained from well logs, well cores and drillstem tests. Those tests also help determine how best to complete the well and design the production facilities.
Wireline Logging Video - See a video that provides an easy-to-understand explanation of wireline logging including why logging is done, how it is conducted, what kinds of logging tools are used, and how logging information is used.
Project Economics - Learn briefly how geologists and engineers evaluate a reservoir, analyze development options and project revenues and costs to determine the most-profitable development plan.
Well Completion - See brief animations of well completion including the production casing, perforating, fracturing, tubing and packer, and Christmas tree.
Reservoir Behavior - Learn how oil and gas behaves in a reservoir and see animations of the natural forces within a reservoir that drive oil and gas toward wells.
Artificial Lift - Learn that artificial lift may be needed to get fluid to the surface if the reservoir does not have enough energy to push fluids all the way up the wellbores. See animations of how pumpjacks and other artificial-lift methods work.
Surface Processing - Learn about surface facilities needed to separate and treat production, which may be a mixture of oil, gas and water. See animations showing a production site layout and the internal function of flowlines, manifold/headers, separator, heater/treater, tanks and water disposal facilities.
Engineers - See a video that we produced showing the various types of engineering roles involved oil and gas including reservoir engineers, drilling engineers, completion engineers, facility engineers and operations engineers.
Depletion Stages - Learn briefly about “secondary” and “tertiary/EOR” methods that may be used to artificially-stimulate a reservoir to produce more oil after the “primary” stage if natural reservoir energy becomes depleted. See animations that we produced showing a secondary-recovery waterflood and a tertiary/EOR-recovery CO₂ flood.
Unconventional Production - Learn how production from tight rock such as shale differs substantially from conventional-reservoir production in terms of the types of wells, drilling patterns, completion methods, production profiles and recovery percentages.
Offshore OperationsLearn about the platforms-types used to drill, process and store offshore production, including fixed platforms, compliant towers, tension-leg platforms, Spar platforms, FPUs, FSOs and FPSOs. It’s not difficult to understand. Learn about subsea production including subsea trees and umbilicals.
Reserves - Learn briefly about how oil and gas reserves are reported by all public companies, what “proved” reserves means, and some of the key rules for determining proved reserves.
Onshore Development Project Video - See a video overviewing the development of a large onshore oilfield in the Middle East.
Offshore Development Project Video - See a video overviewing the fabrication, transportation and installation of the jacket and topsides for an oilfield in the North Sea.
Partnering - Learn why oil and gas companies often work together on projects – sometimes because they want to and sometimes because they have to.
Joint Operations - Learn how joint operations differs from establishing a joint legal entity.
Joint Operating Agreements (JOA) - Learn about the purpose of the joint operating agreement and the model forms established by the AAPL and the AIPN. Learn about the key provisions included in a JOA and the rights and obligations of the parties.
Operator - Learn about the important role and responsibilities of the operator and their relationship with the non-operators.
AFE's - Learn about the Authority for Expenditure forms that operators use to gain expenditure approvals from the non-operators.
Accounting Procedure - Learn how the accounting procedure exhibit to the JOA contains important provisions about which costs the operator may charge to non-operators, when payments must be made, and audit rights for the non-operators.
International JOA's - Learn how international operations differ from typical US operations and how international JOAs accommodate those differences.
Unitizations - Learn how unitizations are used both onshore and offshore to conduct operations over a wide area involving multiple interest owners. Learn how new offshore projects often make use of existing nearby facilities through processing and transportation agreements.
Gas Composition - Learn about hydrocarbon components and contaminants that may be included in a produced gas stream and how the composition tends to vary with different types of production sources.
Natural Gas Liquid Characteristics - Learn how gases such as methane, ethane, propane and butane have different characteristics that allow them to be separated and how each is suitable for different market applications.
Gas Processing Needs - Learn about the various types of treatment that gas may need before it is suitable to enter a major pipeline.
Gas Processing Plants - Learn about the types of gas processing plants and see an easy-to-understand animated tour of a modern cryogenic plant. The tour shows the various stages of processing, including removing contaminants and separating the various hydrocarbon components.
Gas Processing Allocation - See a simplified example of how a gas processing plant allocates plant output back to its various input sources.
Liquefied Natural Gas (LNG) - Learn why LNG is produced and the scope of the LNG process from liquefaction to utilization.
Liquefaction Facility - See a schematic of a liquefaction facility and discuss the overall process and components.
LNG Carriers - Learn about the vessels that ship LNG from liquefaction facilities to regasification terminals.
Regasification Terminals - See a schematic of a regasification terminal and learn how LNG is regasified.
The LNG Market - Learn about LNG movements from major producing countries to major consuming countries.
LNG Pricing - See how the market value of LNG varies around the globe and why some markets are much more attractive than others.
US LNG Exports - Learn about the progress of U.S. LNG export facilities and additional locations that have been proposed.
Industry Infrastructure - See a schematic representation of how the industry infrastructure is organized in a major producing and consuming area such as the US. Observe how gas is gathered, processed and then transported by pipeline, through market hubs, to major storage and consumption centers. Learn how crude oil is gathered from the field by pipeline or truck and then shipped by pipeline, rail or tanker/barge, through market hubs, to storage facilities and refineries. See how NGLs also move through the marketplace. See how the system is balanced through imports and exports.
Pipeline Overview - Hear an overview of oil and gas pipeline characteristics, control systems, oil pumping and gas compression, and the federal agencies that govern commercial and safety regulations.
Pipeline Scheduling - Learn how pipelines receive and deliver products through customer reservations and nominations.
Pipeline Construction - See a video showing the various stages of pipeline construction including preparing the right of way, stringing, trenching, bending, welding, inspecting, coating and burial.
Pipeline Operation - See a video of how pipelines are operated including SCADA control systems.
Offshore Pipelines - See an animation of how offshore pipelines are welded and laid.
US Pipelines - See locations of major US oil and gas pipelines, hubs and storage locations as well as a brief description of the proposed Keystone XL crude-oil line.
Storage - See examples of crude oil tank farms and learn about methods used to store natural gas.
Tankers - Hear about crude oil and refined-product tankers and the major routes traveled by crude oil tankers around the globe. See a slideshow describing the various types of tankers and how they operate.
Other Transportation Methods - Hear about the growing use of rail in the US to move crude oil. Also hear briefly about barges and tank trucks.
Crude Oil Volume - Learn how the volume of crude oil changes with temperature and how actual measured volumes must be adjusted to a standard temperature to calculate the volume used for payment. Learn also how crude oil volumes are adjusted to remove the volume of any sediment and water contained in the crude, and that volume is determined.
Crude Oil Gravity - Learn about crude oil gravity, how it is calculated, how it is measured, and how it is adjusted to a standard temperature.
Crude Oil Tank Sales - Learn about tank strapping tables and how they are used to determine the volume in a manual tank sale. See the process of collecting measurements including tank levels, temperature, gravity and sediment and water. See a demonstration with an actual tank gage, thermometer, oil thief and thermohydrometer. See an example of a run ticket recording the sale. See how the run ticket information is converted to a measured volume and then a standard volume.
LACT Meter Sales - Learn briefly about how LACT meters can measure crude oil volumes automatically and see an example of a meter ticket.
Gas Physical Volume - Learn that measured gas volumes must be adjusted for temperature and pressure to calculate standard volumes.
Gas Heating Value and Molecular Content - Learn that despite the fact that gas prices are often discussed “per mcf,” quoted gas prices are actually per million British thermal units (BTUs). Learn what a BTU is.
Orifice Meters - Learn how orifice meters are commonly used to measure field volumes of natural gas. See a video describing orifice meter components and principles.
Gas Sampling and Analysis - Learn how gas samples are taken and analyzed to determine the molecular composition and the BTU value per mcf so that payment volumes can be calculated.
Contractor and Supplier Market Data - Learn how oil and gas companies rely extensively on contractors and suppliers for a variety of equipment, supplies and services. We’ll present information about the key supplies and services used by the industry and the companies that provide them. We obtain our information courtesy of Spears and Associates, which is the industry’s leading provider of oilfield market research and the publisher of the widely distributed Oilfield Market Report. We’ll present rankings of the largest providers in several key markets including: offshore contract drilling; offshore construction; subsea equipment; land contract drilling; hydraulic fracturing; rig equipment; wireline logging; directional drilling; and geophysical services.
Worldwide Rig Activity - Drilling activity drives the majority of the industry’s expenditures and the number of active drilling rigs is the key indicator of drilling activity. We’ll look at current and historical drilling activity around the globe and observe the most active areas and the trends.
Offshore Rig Activity - Offshore drilling rigs account for a small portion of the overall rig count but they drive a larger amount of spending than land rigs because of the high cost of offshore wells and facilities. We’ll look at offshore drilling activity as reported by RigZone and see which oil and gas companies are most active at offshore drilling, which drilling companies provide the rigs, and which areas of the world are most active.
Crude Oil Marketing - Learn about spot sales, term sales and exchanges. Learn about price references such as spot trade reports, futures trades and refiner postings that are used by buyers and sellers as time-flexible pricing mechanisms. See an example of a spot-market report. Look at the current NYMEX futures-price profile and learn about contango and backwardation. See an example of a refiner posting. Learn about transportation and quality differentials that buyers and sellers incorporate into price references. Hear about some of the current market issues such as: the shifting supply and quality patterns caused by U.S. resource plays; the widely-fluctuating spreads between WTI and Brent; the impact of crude railing; and the possibility of lifting the ban of U.S. crude oil exports (topics change as the market changes).
Gas Marketing - Learn about the greater complexities involved in gas marketing because of the broader customer base, consumption seasonality, and requirement for volume flexibility. Learn about swing, baseload and firm contracts. Learn about market hubs, spot trades and futures trades. Look at the current NYMEX futures price profile. Hear about how the majority of trading is done each month during “bid week.” Hear about some of the current market issues such as: the shifting supply pattern caused by shale gas; ethane rejection; and LNG exports (topics change as the market changes).
Hedging - Hear briefly how buyers and sellers of crude oil, natural gas and refined products can hedge their purchases and sales to protect against price fluctuations outside their acceptable range of tolerance.
Crude Oil Variations - Learn that crude oil is a diverse mix of hydrocarbons and contaminants and crude oil is different from every source.
World Crude Oils - Take a quick look at the wide variety of crude oil types that are available in the marketplace such as “WTI,” “Brent” and “Arab Light.” Observe their major distinguishing characteristics including gravity, sulfur content, source location and the amount that is produced. Look at the most-common sources of crude oil imported by U.S. refiners.
Hydrocarbon Types - Learn that hydrocarbon molecules differ not only in size, but can also differ in molecular structure. Learn about paraffins, naphthenes and aromatics. Both size and structure impact the usefulness of molecules in refined products. Accordingly, refiners carefully analyze the crude oils they buy.
Assays - Learn that crude samples can be analyzed in laboratories and reports called “assays” are generated that provide details about crude characteristics and basic processing behavior. Learn how refiners use assays to guide crude purchasing decisions, to decide how the crude should be processed, and to project refined-product output.
Refinery Capabilities - Learn that refineries have varying capabilities depending on a number of factors including the type of crude oils available and the refined products needed in the market area they serve.
Refinery Process Overview - Learn that refineries use heat, pressure, catalysts and chemicals in processes that include separating, cracking, treating, modifying, combining and blending.
Crude Distillation - Learn about the atmospheric and vacuum distillation processes that are used at the beginning of the refining process to separate crude oil molecules into various “fractions” with similar characteristics.
Cracking - Learn about some of the processes that can be used to break lower-value heavy molecules into higher-value lighter molecules. We will discuss two of these methods – delayed coking and fluidized catalytic cracking.
Reforming and Isomerization - Learn how gasoline engines work and how the octane measure is important to performance. Learn how reforming and isomerization can modify molecules to improve their octane rating.
Alkylation - Learn how alkylation can be used to upgrade low-value gases produced during refining into higher-value liquids.
Blending - Learn about gasoline blending and the key parameters that must be met to ensure product quality and compliance with environmental regulations. Learn about the mandated use of ethanol as a gasoline additive. Learn how gasoline standards vary in different areas of the U.S.
Gasoline and Diesel Taxes - Learn about U.S. state and federal taxes on gasoline and diesel. Learn how tax levels vary by country and have a substantial impact on fuel costs and consumption.
Refinery Locations - Learn about the locations of major refineries in the U.S. and around the world. See a ranking of the companies that operate them. Learn about the variations in refined-product demand by region.
Distribution - Learn how gasoline is distributed to refueling stations in the U.S.
Resource Plays - Hear a brief recap of the shale and tight-rock “resource plays” that we discussed throughout the course.
Coalbed Methane - Hear briefly how coalbed methane is produced and the major producing areas in the U.S.
Oil Sands - Hear about the Canadian oil sands. Watch an interesting video showing how surface mining and in-situ steam assisted gravity drainage (SAGD) are done. See a sample of oil sands.
Ethanol - Learn briefly how ethanol is produced and why it is blended into gasoline.
Hydroelectric Power - Learn briefly how hydroelectric dams generate electricity.
Wind Energy - Learn briefly how windmills can be used to generate electricity.
Geothermal Energy - Learn briefly how a geothermal plant produces electricity.
Solar Energy - Learn briefly how solar energy can be used to generate electricity through solar concentration facilities or photovoltaic technology.
Hear about the world’s major oil and gas producing regions including North America, Latin America, Europe, the Middle East, Africa, the Former Soviet Union and Asia. See maps, photos and graphics that convey the scope, scale and variety of the industry. Hear about major developments, recent events and the characteristics, challenges and peculiarities within each region.
At the end of the course, attendees may optionally elect to take an exam that includes mostly the same questions that were asked by the instructor throughout the course. Anyone that answers at least 70% of the questions correctly will receive a nicely-framed certificate of achievement. (For those needing Continuing Professional Education credits, you are not required to take or pass the exam to receive your credit certificate).
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