Introduction to the Oil and Gas Industry

Powerful Fundamental Concepts:

(Always look for concepts underlying the details--see the
big picture)
• Like substances attract
• Gravity (density) separation
• Special properties of water---polar nature, high
surface tension, conductivity
• Phase Equilibrium
• Flashing
• Gas Laws
• Distillation
 Crude oil/natural gas
Characteristics
• A mixture of hundreds of hydrocarbon
compounds including oil and gas
• Components range from methane to
asphaltenes
• Also contains emulsified salt water
• Almost always lighter than water
• Crude types range from very light gasoline like
material to very heavy asphalt like material
• Can be sweet (no sulfur) but usually sour
• Characterized by density, expressed in degrees
API gravity
Overall Block Diagram Tail Gas
Oil and Gas Industry Acid Gas Sulfur
Treating Product

Natural Gas LNG

LNG Facility
Gas Plant (Liq. Nat. Gas) Product
Gas Product
Natural Gas
Gas Pipeline
Product
Products
NGL (Nat Gas
Light Ends
Oil & Liquids)
Gas Chemical
Gas
Wells Feed Stock
Oil Oil Transportation LPG
(Pipelines,
Oil Production Crude Oil Storage, Tankers,
Crude Oil Gasoline
Processing Jet Fuel
etc.)
OIL Kerosene

Water REFINERY Diesel

Fuel Oil
Water Treating
Lube Oil
and Disposal Bitumen

Sulfur
FUNDAMENTALS OF OIL AND GAS
Carbon Based Fuels and Feedstocks
•Gas

•Dry gas (almost pure CH4)

•Wet gas (includes other hydrocarbons, water, CO2,

N2, H2S etc.)

•Crude Oil

•Can be light to very heavy, almost clear to viscous

and very dark

•Tar Sands and Shale Oils

•Coals--Peats, Lignites (Brown Coals), Bituminous and

Anthracite
 FUNDAMENTALS OF OIL AND GAS
Hydrocarbon Chemistry - Paraffins

CH4 - Methane - Natural Gas - BP minus 161 deg C

C2H6 - Ethane - BP minus 88 deg C

C3H8 - Propane - BP minus 40 deg C

C4H10 - Butane (normal and iso) - BP 0 deg C/minus 12 deg C

 FUNDAMENTALS OF OIL AND GAS
Types of hydrocarbon compounds

– Paraffins - straight or branch chain - CNH2N+2_ > Saturated

– Cycloparaffins (Naphthenes) - CNH2N > Saturated

– Alkenes - Mono-olefins - CNH2N >Unsaturated

– Aromatics - Stable Benzene >Unsaturated

– Diolefins, Dienes or Alkynes - CNH2N- 2 ) > Unsaturated

– Acetylene >Unsaturated
ACETYLENE

1,3-BUTADIENE
 FUNDAMENTALS OF OIL AND GAS

Most Valuable compounds

Gasoline feedstock:
C5s: normal and Iso-Pentane - C5H12 - BP 35 deg C/ 27 deg C
(Also Cyclopentanes, C5H10)
C6s: Iso and normal Hexane - C6 - BP 69 deg C (Cyclohexane
- C6 in a ring formation, a naphthene or monocycloparaffin
compound)
C 7s:Heptane - C7 - BP 99 deg C (Toluene, (C6 + C1)H14)
C8s:Octane - C8 - BP 126 deg C etc to CnHn+2
Chemical feedstock:
Olefins: ethylene, propylene, butylen, butadiene, pentylene
Unsaturated Ring Compounds:
(Aromatics)Benzene/Toluene/Napthalenes/Anthrazenes etc.
 API Gravity
• API gravity is a measure of density

• Given by the formula:

Degrees API = (141.5/SG at 60 °F) - 131.5

Water has an API gravity of 10 degrees

 FUNDAMENTALS OF OIL AND GAS
Diagram of Oil and Gas bearing
deposits or fields
Ground or sea bed level

Gaseous layer at top

of oil field Impervious layer above oil
bearing rock layer

Oil bearing layer

Water layer below oil

 FUNDAMENTALS OF OIL AND GAS

Drilling rig

Drill pipe string

Area from where

oil is flowing
within structure
 FUNDAMENTALS OF OIL AND GAS
GAS DEHYDRATION
GAS
AND DEWPOINTING
SWEETENING

• WELL HEAD GAS TO EXPORT

SEPARATION/ OR REINJECTION
• PRIMARY DEW POINT COMPRESSION
SEPARATION/ CONTROL CHEMICAL
• PARTIAL INJECTION
PROCESSING
ELECTROSTATIC COALESCENCE
OIL TO EXPORT
DEOXYGENATION

REJECT OIL WATER TO DISCHARGE FILTRATION DISINFECTION

PRODUCED OR REINJECTION
WATER
TREATMENT CHEMICAL
INJECTION

Diagram showing typical

processing requirements for
well fluids prior to export
 Schematic of typical oil production facility
Test sep.
flare

Gas compressor
Inlet gas
Gas plant
manifold

1st stage
Crude in sep
Gas reinjection
water oil 2nd/3rd compressor
stage sep
mixer
Water desalter
treating
Dilution
water

oil
Oil pipeline
Storage
pumps
tanks
stabilizer Gas
Water oil pipeline injection
injection
 FUNDAMENTALS OF OIL AND GAS
Typical Field Separation Scheme
Associated Gas to
Shipment or Re-injection
To HP
Flare
From
the
Well FIRST
STAGE To MP
Flare

Water
and SECOND To LP
solids STAGE Flare

Water
and Crude Oil to Desalting
solids THIRD or Shipment or Storage
STAGE
HEATING
(Optional)

Water
and
solids
 FUNDAMENTALS OF OIL AND GAS
CRUDE OIL - From the Well
– Mixed Hydrocarbon Oils
– Gases
– Water
– Dirt - Minerals
Field separation
– May be several stages of pressure letdown and stilling
– Separates into
– Gas - Re-injected, flared or sent to processing
– Oil - Crude Oil - for shipment and/or storage
– Water - for treatment then disposal
– Solids ( sand, dirt) - for disposal
 FUNDAMENTALS OF OIL AND GAS
Typical Vessel type Slug
Gas Out
Catcher

Demister
Pad

Pipeline Fluids in

Liquid level

Baffle plate

Vortex Breaker
on raised pipe

Condensate Glycol/Methanol/Water
out /Dirt out
 FUNDAMENTALS OF OIL AND GAS
Pipeline Fluids in
A Typical Finger
Slug Catcher
Gas Out

80 -100 meters long or

more, and sloped towards
liquid outlet end
Liquids Out
 FUNDAMENTALS OF OIL AND
GAS Gas
Typical Three Phase Out
Separator
Inlet pipe
with baffle
device

Mixed Demister
Pad or vane
Fluids pack
In (optional)

Overflow
Weir Plate
Perforated Coalescer
Inlet Calming Plate Pack Vortex
Baffle plate (optional) Water/Dirt Oil Breakers
Out Out
 FUNDAMENTALS OF OIL AND GAS
To Fuel
Gas
Typical Oil Processing Facility Schematic
To Flare

Heat
Manifold Exchanger

Crude from
Wellhead Production Dehydration/
Separator desalting
(usually 2 or 3
stages)
Heating
Fluid
Crude Oil to Shipping

Water
Conditioner

Water to Re-injection or
Disposal
 Three Phase Separator Process Diagram

Pressure
control
gas

Well fluid

Vapor (gas)

Oil Oil level

control
water
Water level
control

oil

water
 FUNDAMENTALS OF OIL AND GAS
Final Oil Processing prior to Shipment

•Dehydration/Desalting
– Primary water removal
– Electrostatic dehydration
•Stabilisation
– Mild heating to boil off the last of the light
fractions (mostly i and n-butane)
– Pressure reduction to allow last of light
ends to evaporate
– Stabilisation Column
 Electrostatic Crude Desalter/Dehydrator
Series reactor
Dilution water transformer
13kv
480v 3 phase

Oil in
Dry Oil
Electrical grid out

1. Vessel is liquid full Water

droplets
2. Salt is dissolved in water phase
3.Water is emulsified in small
droplets
4. Alternating electrical field acts
on conductive salt water droplets
Water out
5.Droplets vibrate as a result,
collide, coalesce and fall out of
emulsion.
 Two-stage Desalting
Desalted Oil
Out

mixer
2nd stage desalter
Oil in
mixer 1st stage desalter

Recycled
Salt Water Dilution water
to disposal

Fresh Dilution
Water In
 FUNDAMENTALS OF OIL AND GAS
Light Gas
• Stabilization

Stabilized Oil Water Draw-off

Crude Oil
Feed /
Effluent
Exchanger

Reboiler
 FUNDAMENTALS OF OIL AND
Vent
GAS
Purge Connection

Flow Tee
Quick
Pig Closure
Indicator XI

BARREL

Pipeline
Pig
Drain Drain Handling
System

Simplified Diagram of Pig

Platform or
Processing Plant Launcher/Receiver
 FUNDAMENTALS OF OIL AND GAS
Some Examples of Typical Pigs

Cylindrical Brush Pig Gauging Pig Gauge Plate

Cup

Brush Sphere Pig - Used for

separation or displacement

Foam Pig
 FUNDAMENTALS OF OIL AND GAS

Gas Terminology - A system designed to confuse!

• Natural Gas - from the well - includes Methane, Ethane,
Propane, Butane and heavier fractions, sometimes
referred to as Pentanes +, Natural Gasoline or
Condensate, together with Water Vapour, Carbon
Dioxide, Nitrogen, Hydrogen Sulphide, Mercury,
Helium, Mercaptans, etc.

• Natural Gas is also the term given the almost pure

methane stream supplied to consumers

• Natural Gas Liquids (NGL) are the bits left after the
methane is removed; in other words, Ethane, Propane,
Butane and heavier fractions
 FUNDAMENTALS OF OIL AND GAS

Gas Terminology - continued

• Liquefied Natural Gas (LNG) is methane cooled to - 161
degrees centigrade, when it becomes a liquid. It then
occupies a space 1/600 th of when it is a gas, so is then
able to be transported in large quantities in specially
built insulated carriers.
• Liquefied Petroleum Gases (LPG) are mainly Propane
and Butane, which are often sold as a mixture in
pressurised cylinders for cooking, heating and even as a
transport fuel. Sometimes they are sold separately,
again in pressurised containers. Butane, which boils at
approximately - 4 deg C at atmospheric pressure, needs
little pressure to remain liquid, and can thus be sold in
very small containers as lighter fluid.
 FUNDAMENTALS OF OIL AND GAS

Gas Terminology - continued

Other terms you may come across:
• Synthetic or Substitute Natural Gas (SNG) - A form of gas
produced from Coal or Liquid hydrocarbon feedstock
• Gas - Oil Ratio (GOR) and Gas - Liquid Ratio (GLR) the ratio
between the gas and oil (or total liquids - oil and water) coming
from the well. Even almost pure gas wells will have some
entrained oil, which must be separated out at the processing
plant. Similarly, crude oil will have some gas associated with it
as it comes from the well.
 FUNDAMENTALS OF OIL AND GAS
Onshore gas plant processing
•Facilities Design depends upon:
– Components in raw gas stream
– Contaminants which must be removed
– Required product specifications
– Recovery levels of heavier hydrocarbons desired
– Availability of product shipping facilities
– Local environmental considerations
 Simple Gas processing schematic
heater

separator Gas pipeline

compressor

Chemical
Gas injection
well
condensate

Cond. Condensate
storage
pipeline
Condensate stabilizer Cond.
pumps
 Gas Plant Process Flow

flare
SRU Tail gas treater

sulfur
NGL Gas
Sweetening Gas dehy recovery product

LPG product
separator NGL

Gas
well
NGL
condensate
Cond.
storage NGL
Condensate stabilizer product
Cond.
pumps
 FUNDAMENTALS OF OIL AND GAS
Gas Processing

- at the well - remove dirt, free water, condensate etc. and make
it ready to transport.

- It needs to be stable and at a high enough pressure to reach its

destination. Minimal processing is normally done close to the
well.

Typical operations - Simple clean-up then:

– Glycol or methanol injection (to absorb water vapour and

prevent hydrate formation)
– Corrosion Inhibitor injection, to prevent gas contaminants from
damaging the pipeline
– Heating, so that frictional pressure drop and associated
temperature decrease does not result in condensate fallout
– Compression, to ensure the gas will reach its destination
 FUNDAMENTALS OF OIL AND GAS
Acid Gas Removal Processes: -
•Amine absorption-for acid gas removal
MEA, DEA, MDEA, DGA

• Other absorption processes

Sulfinol,Stretford,Zinc Oxide,Hot Potassium Carbonate
Benfield, Catacarb, Selexol

Physical removal processes

• Molecular Sieve
• Membrane Systems.
 Amine Sweetening Unit
Amine Acid
Sweet Gas Out condenser
Flash Tank Gas

Lean Amine
Cooler Reflux drum

Amine
Filters

Reflux
pump

Amine Pump Heat

Medium

Amine Amine
Lean-Rich
Contactor Amine Reboiler
Exchanger
Regenerator
Sour Gas In

Amine
Rich Amine booster
Lean Amine pump
 FUNDAMENTALS OF OIL AND GAS
Wet Gas In
Typical Adsorption Wet
Regeneration
Bed Drying System Gas Out

Regenerating Drying
Bed Bed

Dry Gas Out Dry

Regeneration
Gas In
 Typical Glycol (TEG)
Drying System

Dry Gas Water vapor out

Out Lean Glycol
Cooler

Glycol
Flash Still
Gas

Flash Tank

TEG Reboiler
Glycol
Filters burner
Wet Stripping column
Gas In Glycol
Contactor
Lean-Rich
Surge Drum
Exchanger

Rich Glycol Glycol

Lean Glycol
Pumps
 FUNDAMENTALS OF OIL AND GAS

Typical Once Through Claus Plant

Hot Gas Bypass

Tail Gas
Waste Heat
Boiler 1st Stage 2nd Stage
Reactor Reactor
Acid Incinerator
Gas
Air
Condenser
Condenser

Sulphur Sulphur
Sulphur
 FUNDAMENTALS OF OIL AND GAS

Other Clean up Stages

• Sulphur Recovery
Claus - (H2S + O2 = SO2 + H2S = H2O + S)
• Tailgas Treatment for Sulphur Removal
• Wellman-Lord
• Davy S-H
• IFP
• CBA
• Maxisulf
• SCOT
 FUNDAMENTALS OF OIL AND GAS

Separation of Clean Gas stream into its constituents

Options Available: -
• Adsorption
• Oil Absorption
• Refrigeration
• Compression/cooling
• External Refrigeration
• J-T Valve expansion
• Turboexpander
 FUNDAMENTALS OF OIL AND GAS
Typical Tubo-expander
Residue
Flow scheme Gas De-methanizer

Expander/
compressor

Feed
gas

Liquid
Product
 FUNDAMENTALS OF OIL AND GAS
Typical LPG fractionation train
Propane Butane
Ethane

Raw De- De-

Liquid Ethaniser De-
Propaniser Butaniser
in

Pentanes +,
Raw
Gasoline
CRUDE TOPPING UNITS
Crude Distillation Unit
 Fuel
REFINERY EXAMPLE
Gas
Acid Gas Sulfur
Removal Removal Su

Isom
Unit Isomerate
Naphtha Prem
Naphtha
Hydrotreater
P-16
Naphtha
Splitter Gas

Reg
Reformate
Catalytic
Reformer
Gasoline Blending

Unit
Naph
Dist Jet
Diesel Kero
Hydrotreater
Die

AGO Diesel

Gas
Dist Cutter
Kero
Hydrocracker
VGO Diesel
H2 HGO
Vac Resid
Vacuum Tower Fue
Atm Resid
 FUNDAMENTALS OF OIL AND GAS

• Produced Water Treatment

– Deoiling

Dissolved Air Flotation (DAF)

Hydrocyclone Induced Gas Flotation (IGF)

–Filtration
FUNDAMENTALS OF OIL AND GAS
FUNDAMENTALS OF OIL AND GAS
FUNDAMENTALS OF OIL AND GAS
FUNDAMENTALS OF OIL AND GAS
 Exercises
• 1. Name the four lightest paraffins.
• 2. What are the main structural characteristics of paraffins, alkenes
and aromatic molecules?
• 3. a) What component forms the largest fraction of natural gas?
• b) what range of components exist in crude oil?
• 4 What is the basic process undergone by crude oil in a typical
oil/gas production processing facility?
• 5. How many products result from the above process? How many
by-products?
• 6. A barrel of Saudi Light Crude weighs 136 Kg
• A. What is its specific gravity
• B. What is its API gravity?
• C. What is its density in SI Units?
 Exercises
• 7.The GOR ( Gas to Oil Ratio) of Saudi Light crude is
1000. How much gas (in MMSCFD) will be produced
from a GOSP ( gas-oil separation plant) operating at a
capacity of 100,000 BOPD?
• 8. The gas from the above example has a molecular
weight of 30. What is its gas specific gravity?
• 9. For a 3 phase separator name the inlet and outlet
streams. On a diagram show the approximate location of
each nozzle.
• 10. At a pressure of 10 barg and a temperature of 80
degrees C, what is the volume of 1 SCM of natural gas (
using reference conditions of 0 deg C and 1 bar and
neglecting compressibility)?
 Exercises
• 11. ( for a 3 phase separator)
• The following exercises pertain to an hypothetical oil production
station:
• At a production station, the crude oil from a nearby oil field is
brought into the station to the first stage separator via the inlet
manifold. The first stage separator is designed to process 50,000
BOPD of crude and operates at 100 bara pressure. At this pressure,
70% of the gas in the inlet crude will vaporize. The crude oil into the
separator has the following characteristics:
• Density: 767.0 kg/m3 (796.7 @ std. cond and
dewatered.)
• Temperature: 48.0 deg C
• Pressure: 100 bara
• GOR: 2,500 SCF/BBL (at separator conditions)
• Water content: 10.0 pct. Vol. of oil
• Salt Content: 500 lb/1,000 BBL
 Exercises
• Exercises based on the above Separator system:
• A residence time ( settling time) of 10 minutes for both water and oil
phases is required for water separation by the project specifications
for the first stage separator. The project specifications also require
that the oil level in the main compartment be 50% of the overall
vessel diameter to allow sufficient vapor disengaging space.
• 11 a. Draw a simplified Process Flow Diagram (PFD) for the first
stage separator, showing alll inlet and outlet lines and the major
internal components schematically.
• 11 b Neglecting the volume of the vessel heads and the outlet oil
compartment, what must the vessels overall volume be?
• 11c.. Designing for an L/D (length to diameter) ratio of 2.5 What are
the vessel’s diameter and length?
• 11 d.. Based on the above dimensions, what is the height of the oil
overflow weir measured from the vessel invert? ( the invert is the
lowest point on the vessel bottom.)
 Exercises
• 11 e. The project specifications require a maximum
velocity in the oil outlet piping of 1.5 meter per second.
What is the minimum diameter of the oil outlet line?
• 11 f. The oil flows to the 2nd stage separator where the
pressure is 50 bar absolute. Neglecting flashing and the
pressure loss in the interconnecting piping calculate the
sizing coefficient ( Cv) for the first stage separator oil
control valve using the following formula:
• Cv=1.167xQ(m3/hr)x sq. rt. of (spec. grav/diff. pressure)
or Cv=Qgpm x sq.rt.(s.g/d.p in psig)
• 11 g.How much gas will be flashed in the first stage
separator, in SCFD? ( standard cubic feet per day, 1
SCF= 1 ft3 of an ideal gas at 60deg F and 1 atmosphere
pressure.)
 Exercises
• 12. Petrofac is presenting a proposal for an EPC
project to design and construct oil production
facilities in Tajikistan. Your team has been
requested by management to, within six weeks,
prepare an estimate for the project and to
recommend an overall LSTK price including
profit and overhead based on the guidelines of
8% of price profit margin, 4%(of price) corporate
overhead, and including a 1%(of price) fee for
Petrofac’s agent in Tajikistan and a 1% (of sales
price) cost (not to be marked up) for insurance
and taxes.
 Exercises
• As the manager of your team, you instruct them
to review the bid documents and prepare a
detailed cost estimate using, as much as
possible, actual quotations from vendors and
subcontractors. You ask for their estimate within
five weeks, planning one week for review.
However, delays in getting the bid from the
construction subcontractor result in your not
receiving the team’s estimate until the day
before your scheduled meeting with
management.
 Exercises
• Your team’s estimate is as follows:
• Major equipment $90 M
• Piping Materials $15 M
• Instrumentation/control syst. $ 6 M
• Instrument bulks $ 2M
• Electrical equipment $ 5M
• Electrical cables & bulks $ 3M
• Civil/Structural materials $ 7M
• Other equipment & mat’ls $ 5M
 Exercises
• Engineering $___
• Site mgt/other Petrofac labor $___
• Construction subcontractor $50 M
• Shipping/transport $15 M
• Total direct cost ?
• Contingency ?
• Subtotal ?
• Insurance/taxes ?
• Agent fee ?
• Corp Overhead ?
• Profit ?
• Total sales price ?
 Exercises
• As you are reviewing the estimate with
your team the day before the management
meeting, you notice that they have not
included anything for engineering or other
Petrofac labor. You freak out, but only on
the inside. Then you calmly ask the
estimating manager why. He tells you that
there was not time to do a detailed
estimate of these costs.
 Exercises
• You feel the beginnings of an apopleptic seizure
coming on, but then you remember your old
friend and colleague, Tania Khoury, who was in
charge of the estimating group for a few years
before her promotion to Director of Engineering.
You conclude your review meeting and give her
a call. She tells you that in her experience,
engineering for EPC oil production projects
typically should run about 6% of total direct cost
and that site management and other Petrofac
labor should run about 4% of total direct cost.
 Exercises
• What do you present to management?
• What could you have done differently to
have mitigated your plight?