Table Of Contents
Section I: The Oil & Gas Industry ................................................... 9
A Brief History of Oil ..................................................................... 10
From biblical times… ........................................................................................................ 10
Setting the scene .............................................................................................................. 11
IOCs and NOCs ................................................................................................................. 15
The IOC Sisters – 100 years in the making ...................................................................... 16
The International Oil Companies ...................................................................................... 19
The IOCs Compared ..................................................................... 21
The major NOCs ............................................................................................................... 23
OPEC ............................................................................................ 27
A brief history ................................................................................................................... 27
How does OPEC work? .................................................................................................... 28
Why is OPEC able to influence prices? ............................................................................ 29
What price does OPEC want? .......................................................................................... 30
The OPEC basket .............................................................................................................. 31
What is the western IOCs exposure to OPEC? ................................................................ 31
In the beginning ….. ..................................................................... 32
A brief summary ............................................................................................................... 32
Geologic time and rock record ......................................................................................... 33
Basic geology ................................................................................................................... 34
Hunting for sand… ........................................................................................................... 36
Working hydrocarbon system .......................................................................................... 38
Source rocks ..................................................................................................................... 39
Migration .......................................................................................................................... 41
Reservoir quality ............................................................................................................... 42
The trap and seal .............................................................................................................. 44
Reservoir volumetrics ....................................................................................................... 46
Getting it out ................................................................................ 48
The Life Cycle of a Basin .................................................................................................. 48
Field Operations ................................................................................................................ 53
Land Seismic .................................................................................................................... 53
Offshore seismic ............................................................................................................... 55
Assessing risk and reward ............................................................................................... 57
Benchmarking exploration success rates ........................................................................ 58
Field Operations - Drilling ................................................................................................. 61
Directional (incl. horizontal) wells .................................................................................... 65
Land and offshore rigs ..................................................................................................... 66
Field Operations - Evaluation ........................................................................................... 68
Field Operations - Development ....................................................................................... 72
Onshore – oil is usually straight-forward… ...................................................................... 72
Offshore – as usual, deeper is tougher ............................................................................ 73
Peering deeper .................................................................................................................. 75
Extending the field life ...................................................................................................... 77
Recovery factors ............................................................................................................... 78
Primary recovery ............................................................................................................... 78
Depositional controls on recovery factor ......................................................................... 79
Secondary recovery… waterflood .................................................................................... 80
Tertiary recovery techniques ............................................................................................ 80
Oil Field Service Companies – where do they fit? ............................................................ 81
Global oil service chain – representative competitive landscape .................................... 82
Key sector drivers & leading indicators ............................................................................ 85
Rig Counts ........................................................................................................................ 86
Day-rates........................................................................................................................... 86