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Alberta EnergyThe Business of Oil and Gas
2 Economic Impact Employment Multiplier = 3.57Alberta
Seismology/ Seismic - started as a study of earthquakes 	- Need to know travel time of shockwaves in rock 	- Location and depth of quake determined by triangulation 3 Seismic
4 Seismic Recording Truck Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
Oilfield seismograph- uses man made shock waves		 ,[object Object],	- Shot holes drilled below glacial till  	- Dynamite/ fertilizer for energy 5 Seismic Rig
6 Receiver Cables Seismic Crews  a.k.a.Doodlebugs Microphone & Cable Crews  a.k.a. Jug Hustlers Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
7 Seismic Vibration Trucks Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
[object Object],- Records times between energy shock (dynamite) and reflection arrivals at geophones - Used to understand travel velocity in local formations - Travel velocities can be obtained by a guess (experience), velocity survey or sonic logs.  8 Seismic Recording Truck
Sonic Tool, Velocity Survey. 9 Sonic Tool, Velocity Survey
Air guns for offshore 10 Seismic in the Sea
11 Geology
12 Surface Geology
13 Sub Surface Geology electric logs, well production, core porosities & permeability geophysical seismic records  drawing of contours
14 Oil and Gas Traps
15 Reef Structures
16 Porosity & Permeability Almost all oil and gas is found within the tiny spaces in sedimentary rocks, mainly sandstone and coarse-grained limestones.  A piece of sandstone or limestone is very much like a hard sponge, full of holes, but not compressible.  These holes, or "pores", can contain water or oil or gas, and the rock will be saturated with either water, oil or gas.  The holes are much tinier than sponge holes, but they are still holes, and they are called "porosity". Permeability is the measure of the ability of oil, gas, or water to flow through the porous space in the formation.
Sub Surface Geology Geophysical seismic records (Leduc Reef)  Contour mapping (West Leduc Structure)  17
18 Geological Prognosis
19 Well Site Geologists a.k.a. Rock Smeller or Rock Sniff
20 Surface Land Department
Plans must be signed by a registered Alberta Land Surveyor (ALS).  - Surveys in road and lease and stakes both the lease and the road for the construction contractor. – Puts a stake at the well centre. 21 Surveyors
22 Surface Land Department Surface Land Dept may have company or consultant land agents.  Land agents must be certified to sign lease agreements.  - Check land titles - Secure permission to survey - Survey plan is attached to lease agreement - Lease agreement payment calculation  	- Market value/ x acres 	- General disturbance – while drilling 	- Loss of use - $/acres (depends on type of land)  	- Adverse effect - depends on farming factors (where lease is located, road lease) - Annual rent- 3 plus 4 	- Other 	- Entry fee $500/acre  	- Total first year compensation is total of above
23 Surface Land Agreements ,[object Object]
Land agent needs local knowledge to know what to pay on initial entry payments and yearly payments.
Land negotiations are different on crown land; must deal with forestry department and is generally lower cost.Surface Rights Board: Arbitrates compensation on private lands only. ERCB arbitrates well site locations.
24 Alberta Surface Rights Board
25 Surface Land Agreement
26 Mineral Land Department
-  Crown Minerals- owned by province  -  Freehold Minerals- obtained by homesteaders before   1905 -  Hudson Bay & Canadian Pacific Railroad also C&E Corp and CNR -  Crown Leases are leased in Department of Mines and Minerals Land Sales or farmed in from others -  Freehold minerals- leased from freehold mineral owner -  Company must be bonded by ERCB -  Minerals land department separate from surface land. Makes deals with other companies, prepares bids for Government auctions of mineral leases. 27 Mineral Rights
28 Drilling Department
Receives formation top prognosis and well coordinates from geologists as well as estimated coring and DST Intervals Mineral land department must advise if drilling into a Land Sale or if Minerals Lease are expiring. Must also provide a list of partners in the well   29 Drilling Department
30 Legal Grid Reference The Big Picture
31 Legal Sub Division (LSD)
0 32 Surface & Mineral Rights
0 33 Oil and Gas Well Spacing
0 34 Leduc #1 Section 5-22-50-26-W4
0 35 Leduc #1  SW Quarter Section 5-22-50-26-W4
-  Generates an AFE (Acquisition for Expenditure) -   Needs drilling records on nearby wells -   Bit records on nearby wells -   Drilling mud information -   Review government regulations  -   Casing setting depths and cementing regulations -   Sour wells: submit Emergency Response Plans to ERCB  -   Design casing strings: Armco Book -   Cementing Program: ERCB G-9 Regulations  36 Acquisition for Expenditure (AFE)
37 Casing & Cement Well Casings and Cement Programs are designed for specific well conditions found in various areas.
38 Drilling Program Includes all of the information that is required to prepare a drilling rig bid document
39 Drilling Contractors Drilling companies own the drilling rigs that are required to drill an oil or gas well, usually obtained by signing a bid contract.
40 Apply for Drilling License  from Alberta Energy Resources Conservation Board In Saskatchewan – Dept. of Mineral Resources Drilling companies own the drilling rigs that are required to drill an oil or gas well, usually obtained by signing a bid contract.
41 Drilling Rig
0 42 Land Drilling Rigs
0 43 Offshore Drilling Rigs
44 Offshore Drilling  - Jackup Rigs
45 Offshore Drilling Rigs – Semi Submersible Deepwater Horizon
46 Offshore Drilling Rigs – Drillship
47 Offshore Drilling Rigs – Permanent Platform Hiberna
48 Draw Works
49 Traveling Blocks Blocks
50 Cat Engine Caterpillar
51 Drilling Console
52 Tongs Hydraulic Tongs Manual Tongs
53 The Rig Floor & The Roughnecks Slips Tongs Elevators
54 Mud Tanks and Mud Pumps Mud Tanks Mud Pump (triplex)
55 Move Rig to Location
56 Spud In
- Mud up with gel (bentonite) and other chemicals (caustic for PH control) 	-low solids muds 	-treatments for drilling anhydrates and salt 	-treatments for sloughing shales (Blairmore, Ft. St. John)  	-water loss control 	-lost circulation 	-high pressures (gas or oil kicks) 	-add weight materials 57 Drilling Mud & Downhole Pressure
58 Drilling Mud & Downhole Pressure
59 Drill to TD of Surface Hole A large diameter bit is used to drill the surface holes so large diameter casing can be run and cemented full length to protect upper potable water zones from drilling mud and to keep the hole from sloughing in.  Government regulations in each province set out a minimum surface casing depth.
- Cement Types 	- Neat plus low fluid loss and turbulence inducers 	- Pozmic(fly ash) – more cost effective 60 Cement
61 Blowout Preventer (BOP)
0 62 Drilling The Well
63 Production Casing Image of Deepwater casing string
64 Casing Cementing Jewelry 	-  casing design / sour gas etc 	-  Jewelry // stage collars, scratchers, centralizers, float shoe and float collar  Scratcher Centralizer and Basket Stage  Collar Float Shoe Float Collar Plugs
65 Casing Cementing Jewelry 	-  casing design / sour gas etc 	-  Jewelry // stage collars, scratchers, centralizers, float shoe and float collar  Scratcher Centralizer and Basket Stage  Collar Float Shoe Float Collar Plugs
0 66 Casing Cementing Jewelry As seen in the Museum
- Production Casing and Cementing  	- casing design / sour gas etc 	- Jewelery- stage collars, scratchers, centralizers, float shoe and float collar  67
68 Completions & Workovers
Completions & Workovers 	Service Rig: 		- Runs tubing Etc. 		- Runs sucker rods 		- Derrick for perforating, etc. 		- Installs wellhead - Drill out cement for open hole completions Perforating:  	- Casing Guns  		- Bullets (old) 		- Shape charges 	- Gun Types 		- Casing Guns 		- Through Tubing Guns 69
70 Perforation
71 Hydraulic Fracturing
15% HCL (generally) Limestone & Dolomite 	- Other acids sometimes 	- HF acid for acid washes in sandstones 72 Acidizing
To start a well flowing the well is swabbed. Swabbing involves pulling a rubber faced cylinder called a swab up the tubing with a wireline.  This reduces the hydrostatic pressure beneath the swab which allows fluids to flow out of the formation. This procedure continues until the well flows on its own accord. 73 Swabbing
74 Bottom hole pumps & rods Pumpjacksa.k.a. (nodding donkeys/ thirsty birds/horses head)
75 Battery Construction & Oil Transport Separator Lines Treater Storage Tanks
Abandonment - no oil or gas of economic value Submit a plugging program to ERCB or DMR for approval Cement plugs placed as per the approved program Bottom plug  Intermediate plugs 76 Abandonment
Abandonment - no oil or gas of economic value Plug covering surface casing shoe – some areas require back pressures to be held for 24 hours. Cut off casing (1.5m below surface and drop in 5 sacks of cement.) Weld on plate Release rig 77 Abandonment
clean up Lease restore top soil and vegetation  put  A & B zones back in order test samples of soil on and off lease.  (natural salts can affect growth) remove roadway and obtain reclamation certificate from Department of Environment 78 Reclamation

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Alberta Energy : The Business of Oil and Gas

  • 1. Alberta EnergyThe Business of Oil and Gas
  • 2. 2 Economic Impact Employment Multiplier = 3.57Alberta
  • 3. Seismology/ Seismic - started as a study of earthquakes - Need to know travel time of shockwaves in rock - Location and depth of quake determined by triangulation 3 Seismic
  • 4. 4 Seismic Recording Truck Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
  • 5.
  • 6. 6 Receiver Cables Seismic Crews a.k.a.Doodlebugs Microphone & Cable Crews a.k.a. Jug Hustlers Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
  • 7. 7 Seismic Vibration Trucks Seismic Acquisition Voyageur Oil and Gas Corp BEKS Permit Southern Tunisia
  • 8.
  • 9. Sonic Tool, Velocity Survey. 9 Sonic Tool, Velocity Survey
  • 10. Air guns for offshore 10 Seismic in the Sea
  • 13. 13 Sub Surface Geology electric logs, well production, core porosities & permeability geophysical seismic records drawing of contours
  • 14. 14 Oil and Gas Traps
  • 16. 16 Porosity & Permeability Almost all oil and gas is found within the tiny spaces in sedimentary rocks, mainly sandstone and coarse-grained limestones.  A piece of sandstone or limestone is very much like a hard sponge, full of holes, but not compressible. These holes, or "pores", can contain water or oil or gas, and the rock will be saturated with either water, oil or gas.  The holes are much tinier than sponge holes, but they are still holes, and they are called "porosity". Permeability is the measure of the ability of oil, gas, or water to flow through the porous space in the formation.
  • 17. Sub Surface Geology Geophysical seismic records (Leduc Reef) Contour mapping (West Leduc Structure) 17
  • 19. 19 Well Site Geologists a.k.a. Rock Smeller or Rock Sniff
  • 20. 20 Surface Land Department
  • 21. Plans must be signed by a registered Alberta Land Surveyor (ALS). - Surveys in road and lease and stakes both the lease and the road for the construction contractor. – Puts a stake at the well centre. 21 Surveyors
  • 22. 22 Surface Land Department Surface Land Dept may have company or consultant land agents. Land agents must be certified to sign lease agreements. - Check land titles - Secure permission to survey - Survey plan is attached to lease agreement - Lease agreement payment calculation - Market value/ x acres - General disturbance – while drilling - Loss of use - $/acres (depends on type of land) - Adverse effect - depends on farming factors (where lease is located, road lease) - Annual rent- 3 plus 4 - Other - Entry fee $500/acre - Total first year compensation is total of above
  • 23.
  • 24. Land agent needs local knowledge to know what to pay on initial entry payments and yearly payments.
  • 25. Land negotiations are different on crown land; must deal with forestry department and is generally lower cost.Surface Rights Board: Arbitrates compensation on private lands only. ERCB arbitrates well site locations.
  • 26. 24 Alberta Surface Rights Board
  • 27. 25 Surface Land Agreement
  • 28. 26 Mineral Land Department
  • 29. - Crown Minerals- owned by province - Freehold Minerals- obtained by homesteaders before 1905 - Hudson Bay & Canadian Pacific Railroad also C&E Corp and CNR - Crown Leases are leased in Department of Mines and Minerals Land Sales or farmed in from others - Freehold minerals- leased from freehold mineral owner - Company must be bonded by ERCB - Minerals land department separate from surface land. Makes deals with other companies, prepares bids for Government auctions of mineral leases. 27 Mineral Rights
  • 31. Receives formation top prognosis and well coordinates from geologists as well as estimated coring and DST Intervals Mineral land department must advise if drilling into a Land Sale or if Minerals Lease are expiring. Must also provide a list of partners in the well   29 Drilling Department
  • 32. 30 Legal Grid Reference The Big Picture
  • 33. 31 Legal Sub Division (LSD)
  • 34. 0 32 Surface & Mineral Rights
  • 35. 0 33 Oil and Gas Well Spacing
  • 36. 0 34 Leduc #1 Section 5-22-50-26-W4
  • 37. 0 35 Leduc #1 SW Quarter Section 5-22-50-26-W4
  • 38. - Generates an AFE (Acquisition for Expenditure) - Needs drilling records on nearby wells - Bit records on nearby wells - Drilling mud information - Review government regulations - Casing setting depths and cementing regulations - Sour wells: submit Emergency Response Plans to ERCB - Design casing strings: Armco Book - Cementing Program: ERCB G-9 Regulations 36 Acquisition for Expenditure (AFE)
  • 39. 37 Casing & Cement Well Casings and Cement Programs are designed for specific well conditions found in various areas.
  • 40. 38 Drilling Program Includes all of the information that is required to prepare a drilling rig bid document
  • 41. 39 Drilling Contractors Drilling companies own the drilling rigs that are required to drill an oil or gas well, usually obtained by signing a bid contract.
  • 42. 40 Apply for Drilling License from Alberta Energy Resources Conservation Board In Saskatchewan – Dept. of Mineral Resources Drilling companies own the drilling rigs that are required to drill an oil or gas well, usually obtained by signing a bid contract.
  • 44. 0 42 Land Drilling Rigs
  • 45. 0 43 Offshore Drilling Rigs
  • 46. 44 Offshore Drilling - Jackup Rigs
  • 47. 45 Offshore Drilling Rigs – Semi Submersible Deepwater Horizon
  • 48. 46 Offshore Drilling Rigs – Drillship
  • 49. 47 Offshore Drilling Rigs – Permanent Platform Hiberna
  • 52. 50 Cat Engine Caterpillar
  • 54. 52 Tongs Hydraulic Tongs Manual Tongs
  • 55. 53 The Rig Floor & The Roughnecks Slips Tongs Elevators
  • 56. 54 Mud Tanks and Mud Pumps Mud Tanks Mud Pump (triplex)
  • 57. 55 Move Rig to Location
  • 59. - Mud up with gel (bentonite) and other chemicals (caustic for PH control) -low solids muds -treatments for drilling anhydrates and salt -treatments for sloughing shales (Blairmore, Ft. St. John) -water loss control -lost circulation -high pressures (gas or oil kicks) -add weight materials 57 Drilling Mud & Downhole Pressure
  • 60. 58 Drilling Mud & Downhole Pressure
  • 61. 59 Drill to TD of Surface Hole A large diameter bit is used to drill the surface holes so large diameter casing can be run and cemented full length to protect upper potable water zones from drilling mud and to keep the hole from sloughing in. Government regulations in each province set out a minimum surface casing depth.
  • 62. - Cement Types - Neat plus low fluid loss and turbulence inducers - Pozmic(fly ash) – more cost effective 60 Cement
  • 64. 0 62 Drilling The Well
  • 65. 63 Production Casing Image of Deepwater casing string
  • 66. 64 Casing Cementing Jewelry - casing design / sour gas etc - Jewelry // stage collars, scratchers, centralizers, float shoe and float collar Scratcher Centralizer and Basket Stage Collar Float Shoe Float Collar Plugs
  • 67. 65 Casing Cementing Jewelry - casing design / sour gas etc - Jewelry // stage collars, scratchers, centralizers, float shoe and float collar Scratcher Centralizer and Basket Stage Collar Float Shoe Float Collar Plugs
  • 68. 0 66 Casing Cementing Jewelry As seen in the Museum
  • 69. - Production Casing and Cementing - casing design / sour gas etc - Jewelery- stage collars, scratchers, centralizers, float shoe and float collar 67
  • 70. 68 Completions & Workovers
  • 71. Completions & Workovers Service Rig: - Runs tubing Etc. - Runs sucker rods - Derrick for perforating, etc. - Installs wellhead - Drill out cement for open hole completions Perforating: - Casing Guns - Bullets (old) - Shape charges - Gun Types - Casing Guns - Through Tubing Guns 69
  • 74. 15% HCL (generally) Limestone & Dolomite - Other acids sometimes - HF acid for acid washes in sandstones 72 Acidizing
  • 75. To start a well flowing the well is swabbed. Swabbing involves pulling a rubber faced cylinder called a swab up the tubing with a wireline. This reduces the hydrostatic pressure beneath the swab which allows fluids to flow out of the formation. This procedure continues until the well flows on its own accord. 73 Swabbing
  • 76. 74 Bottom hole pumps & rods Pumpjacksa.k.a. (nodding donkeys/ thirsty birds/horses head)
  • 77. 75 Battery Construction & Oil Transport Separator Lines Treater Storage Tanks
  • 78. Abandonment - no oil or gas of economic value Submit a plugging program to ERCB or DMR for approval Cement plugs placed as per the approved program Bottom plug Intermediate plugs 76 Abandonment
  • 79. Abandonment - no oil or gas of economic value Plug covering surface casing shoe – some areas require back pressures to be held for 24 hours. Cut off casing (1.5m below surface and drop in 5 sacks of cement.) Weld on plate Release rig 77 Abandonment
  • 80. clean up Lease restore top soil and vegetation put A & B zones back in order test samples of soil on and off lease. (natural salts can affect growth) remove roadway and obtain reclamation certificate from Department of Environment 78 Reclamation
  • 82. 0 80 Drill the Well

Hinweis der Redaktion

  1.  
  2. Seismology/ Seismic - started as a study of earthquakes. - Need to know travel time of shockwaves in rock - Location and depth of quake determined by triangulationA seismic source, such as a dynamite explosion, compressed air gun or vibrator unit, generates energy that travels into the Earth as vibrations passing through underground rock layers. Different types of rock filter the seismic waves and some energy returns to the surface due to refraction or reflections from surfaces between different rock layers.The returning seismic energy is measured by receivers, which record the seismic signals as electronic waveforms. Geophones are one type of receiver, used on land, on the sea floor or inside a wellbore (as in a vertical seismic profile) to record the seismic signal. Geophones use a moving magnet or coil, as used in some microphones, to measure small vibrations. Hydrophones are another type of receiver, used to measure changes in pressure as sound travels through water. Hydrophones are usually towed a few meters underwater inside “streamers” that are typically 3 – 6 km (abut 2 – 4 miles) long. Hydrophones can also be suspended vertically or laid on the sea floor.
  3. Seismic Recording Truck – designed for desert application.Voyageur 3D Seismic Program PhotosAccessed 11/2/2010http://voyageuroil.com/WhatsNew.aspxDate of project: 01/30/2009
  4. Oilfield seismograph- uses man made shock waves Reflection seismic - Shot holes drilled below glacial till - Dynamite / fertilizer for energySeismic Drilling RigPhotos Courtesy of Voyageur Oil and Gas CorporationVoyageur 3D Seismic Program PhotosAccessed 11/2/2010http://voyageuroil.com/WhatsNew.aspxDate of project:01/30/2009
  5. Receiver CablesPhotos Courtesy of Voyageur Oil and Gas CorporationVoyageur 3D Seismic Program PhotosAccessed 11/2/2010http://voyageuroil.com/WhatsNew.aspxDate of project: 01/30/2009
  6. Seismic Vibration Trucks (Vobroseis)Photos Courtesy of Voyageur Oil and Gas CorporationVoyageur 3D Seismic Program PhotosAccessed 11/2/2010http://voyageuroil.com/WhatsNew.aspxDate of project: 01/30/2009
  7. - Recording truck layout of geophones, generally 2D seismic- Records times between energy shock (dynamite) and reflection arrivals at geophones- Need to know (guess) travel velocity in local formations- Travel velocities obtained by guess (experience), velocity survey or sonic logs.  Recording Truck: unitedgeophysical.com/company.htmlCopyright © 2007 United Geophysical Courtesy of The BaldchemistReflection Seismic – geologicresources.com/seismic_reflection_method.html Stein, S. and Wysession, M., 2003.   An Introduction to Seismology, Earthquakes, and Earth Structure, Blackwell Publishing, Malden, Massachusetts, USA.
  8. The sonic tool measures the travel time from the point of the dynamite charge explosion to the downhole logging tool. The travel time recorded on the log is the time taken for a shock wave to travel from the surface to the tool. The tool is landed at several different depths, depending on the depth of the hole, and a separate shockwave is initiated for each depth. This survey is mainly done after a dry hole or a field where travel times are not well known.
  9. Seismic in the sea is conducted with a string of hydrophones. The principles are the same as explosive charges used on land, but air-guns create the shock wave as they are more environmentally friendly.
  10. Surface geology is the study of outcrops mainly in foothills and mountains
  11. Sub-Surface Geology, in the oil and gas industry, usually involves the study of electric logs, well production, core porosities & permeability. Geophysical seismic records are consulted and the integration of various knowledge sets enable geologists to draw contour maps, pick tops, and recommend to management where to drill. Geologists typically supply the prognosis and the drilling location coordinates to the drilling department based on their knowledge of sub-surface geology and existing known formation depths which are drawn from data that is recorded for every well.
  12. Oil and gas traps are formed in a variety of ways. Oil is trapped by rock formations that are nonporous, this is why the oil and gas stays in the trap.Oil and gas are formed by shales being buried deeper and deeper in a warm sea environment. The hydrocarbons result from the organic material in the shale being compressed and heated, then squeezed into porous rocks above and below the shale. The hydrocarbons then float through the porous rock until they are trapped or released to the atmosphere at some outcrop.
  13. Stuart City and Edwards reef are lower cretaceous reef structures, also pictured are the Cupido reef and the Sligo reef along the same trend line located south of San Antonio and Austin and north of Corpus Christi and Houston, Texas.Noted in the dark green
  14. In short, porosity & permeability are scientific terms. It has been described in this way… porosity is the holes in the rock and permeability is holes being connected.
  15. Sub surface geology allows geologists to analyze seismic records, such as the Leduc Reef pictured above. The seismic records can enable geologists to create a contour map, which is a visualization of the underground structures of interest for potential drilling.
  16. When applying for a drilling license to drill an oil and gas well, a prognosis must be completed and submitted with an application. The prognosis identifies the well by legal land location, states the ground elevation and kelly bushing (KB) elevation if known. The objective/s to be reached are stated and as are expected formation top depths. Sample frequency and anticipated cores and/or logs are stated. In addition, the partners in the well are stated and working interest ownership is disclosed. An expected start date and total depth of the well are stated and the form is signed by a geologist and an engineer.
  17. Well site geologists study drilling samples and they pick coring and drill stem test intervals
  18. Prior to drilling an oil or gas well, the location must be surveyed by a qualified and certified land surveyor. The surveyor will begin the survey at a permanent bench mark and measure the distance to the desired drilling site. The lease will be marked at the corners and a centre stake will be installed and marked centre. The roadway will be staked and any encumbrances, such as pipelines or other wells will be identified. A survey plat will be prepared and signed by the surveyor. This plat will be the basis for surface negotiations and application for the well license. The legal sub division (LSD) section, township, range, and meridian, and elevation will be indicated to identify the well site.
  19. knowledgeoman.com/.../showthread.php?t=2238 May 7th 2008
  20.  
  21. See attached
  22. Mineralslandmen negotiate arrangements with other companies, i.e. farmouts etc. They also deal with provincial governments for land sales, lease time extensions, etc.December 7th 2009d.umn.edu/geology/research/microscopy.htmlwww.arcus.org/TREC/VBC/index July 6th 2005
  23. A Legal Sub Division (LSD) is part of the Land Grid Reference. This system dates back to the days following Confederation. The Prairies were mapped, starting from a point 40 miles west of Winnipeg. A line called the first meridian was established at 98 degrees longitude (an imaginary ribbon of tape stretching 760 miles from the Canada/US border (49th parallel) to the current NWT (60th parallel). As surveyors moved west, additional meridians were established at 102, 106, 110 (AB/SASK border), 114, and 118 degrees. Township, Section, and Range is a common expression. Townships are 36 square miles and are intersected east-west by township lines and they are also intersected north-south by range lines every six miles. In Alberta, the first township is located in the extreme south corner of Province, bordering Saskatchewan and the United States. Each Township contains 36 identical sections, and each section is divided into 16 legal subdivisions (LSD’s).The example above shows the South West Quarter of Section 24 in Township 38, Range 20, West of the 5th meridian.
  24. LSD stands for Legal Sub Division. The LSD is a subdivision of a section. There are 16 legal subdivisions in each section and we sometimes here references to a quarter section. The above quarter section would be referred to as the southwest quarter of section one.
  25. Someone who owns surface rights to land owns not only the surface but also the air space above it (subject to the rights of others, such as airlines) and any sand, gravel, peat, clay or marl which can be excavated by surface operations. However, surface rights do not include ownership of minerals. Someone who owns mineral rights to land may own one specific mineral, several specified minerals or all of the minerals (except gold and silver, which, with few exceptions, are the property of the Crown). If the land described on a certificate of title is surface only, the legal description will be followed by a "mineral reservation", a phrase such as "excepting thereout all mines and minerals". If the title includes both surface and minerals, it will not have a mineral reservation. If the title is for minerals only, they will be named in a phrase like "all coal, petroleum and natural gas" or "all mines and minerals".As minerals represent a great deal of the wealth of this province, it is very important that their ownership be clearly defined. For this reason, the Land Titles Offices are required to issue Mineral Certificates before registering any dispositions (transfers, mortgages or leases of mineral interests). A Mineral Certificatecertifies precisely what minerals are owned in a specific parcel of land and by whom, on a specific date, and what mines and minerals are shown in the disposition.Most titles which previously included both surface and minerals have now been separated into "surface only" titles and "minerals only" titles.
  26. Typical oil well spacing is one well per 160 acres. For typical gas wells, the spacing would be one well per 640 acres. For heavy oil, the spacing might be a small as 10 acres. Must apply to ERCB for smaller spacing.4.020(1) The normal drilling spacing unit for an oil well is one quarter section. (2) The normal drilling spacing unit for a gas well is one section. (3) Repealed AR 144/96 s10. AR 151/71 s4.020;295/78;469/78;374/91;144/96 http://www.ercb.ca/docs/requirements/actsregs/ogc_reg_151_71_ogcr.pdf
  27. Casing strings are designed to address the pressures that may be encountered when drilling an oil or gas well and to keep the well from caving in. Once the steel casing is run into a well, cement and water are mixed into a slurry and pumped down the inside of the casing and returned on the outside of the casing to make a bond between the casing and the surrounding formation.
  28. submit to management submit to partnersinclude safety and blowout prevention program  
  29. Obtain Drilling Contract Bids and Other Supply PricesLet drilling contract- day work or footageCAODC Rig Locator Indicates where rigs are located, rig move cost is a big factorContact service, and equipment suppliers (drilling mud, cementing, casing, coring, DST, logging, etc)Ensure drillers, tool pushers, foreman, have all safety tickets ie. BOP, Safety, WHMIS, TDGA, First Aid, etc.Survey Lease May need to move and directionally drill Meet with Land Owner to discuss Lease Construction
  30. An application for a drilling license includes information such as the mud to be used, casing string designs, and abandonment plans.
  31. Land based drilling rigs require many different components. The derrick is the tall structure and it has some key components such as the crown block, where the cables are strung that allow the traveling block to move up and down. There is a device that clamps on to drilling pipe called elevators, these are closed around the drilling pipe allowing pipe to be raised out of the well or lowered into the well. The drilling floor has a rotary table that turns in a circular motion, this rotates the pipe and the drilling bit and this is the device to drill the well deeper. Because mud is used to lubricate the drilling bit and create enough pressure to prevent a gusher, drilling rigs require mud tanks and mud pumps. Energy is required, this is typically provided by big diesel engines called “Cats”, a name taken from Caterpillar engines. A supply of drill pipe is required and these are stored on racks called drill-pipe racks.
  32. This graphic shows different offshore rig types and how they are deployed in offshore environments.
  33. The draw works is really a large reel that brings in or gives out cable to move the blocks up and down. This is the device used to raise and lower pipe into the well.
  34. Blocks are pulled up and down in the derrick by the draw works.
  35. The power required to move the drill pipe up and down and turn the rotary table is provided by a large diesel engine called a cat – the name comes from the manufacturer... Most often these engines are manufactured by Caterpillar.
  36. The driller oversees the operations of the drilling rig. The driller operates the controls of the drilling rig and this is an example of a typical control panel.
  37. Most rigs use hydraulic tongs, but here are still some rigs with manual tongs. Tongs are used to clamp onto the drill pipe and make up or break connections, i.e. join sections of drill pipe together. Roughnecks typically operate the tongs.
  38. Slips, Tongs, and Elevators
  39. Mud is mixed and stored in mud tanks, the mud is then pumped down the well by mud pumps.
  40. Moving the drilling rig to the site can be accomplished in a variety of ways. In Alberta, these moves are typically done by trucking the rig. There is a period called Spring Breakup, during which time the roads are quite muddy and moving such heavy loads would cause a lot of road damage. During the most vulnerable times, road bans are in effect, load weights are severely restricted.
  41. Mineral leases have an expiry date, so drilling operations must begin before that date. To be in compliance with the lease expiry date, it is necessary to “Spud In” – this means drilling has to occur and be deep enough to bury the drilling bit. Once the drilling bit is buried, the requirement to spud in has been met.
  42. Drilling Mud creates a column of hydrostatic pressure. If the hydrostatic pressure is greater than the down hole pressure, the hydrocarbons won’t rise to surface. Sometimes, when encountering new zones, greater pressures are encountered, creating a kick, which is overcome by increasing the weight of the mud being pumped. Mud weight may be increased by adding barite to the mixture.
  43. A large diameter bit is used to drill the surface holes so large diameter casing can be run and cemented full length to protect upper potable water zones from drilling mud and to keep the hole from sloughing in. Government regulations in each province set out a minimum surface casing depth.
  44. Cement types vary with the application of the requirements. As an example, when cementing surface casing, a good grade of construction cement may be suitable. Cementing production casing may call for a sulfate resistant cement (oil well cement over the pay zone). A cement with a percentage of fly ash and/or bentonite added to lighten the slurry and reduce the cost of the cement job and may be satisfactory over certain portions of the hole.
  45. Pipe rams close around the drill pipe, restricting flow in the annulus (ring-shaped space between concentric objects) between the outside of the drill pipe and the wellbore, but do not obstruct flow within the drill pipe. Annular rubber pipe rams can accommodate pipe in a wider range of outside diameters than standard pipe rams, but typically with some loss of pressure capacity and longevity.Blind rams (also known as sealing rams), which have no openings for pipe, can close off the well when the well does not contain a drill string or other tubing, and seal it.Shear rams cut through the drill string or casing with hardened steel shears.Blind shear rams (also known as shear seal rams, or sealing shear rams) are intended to seal a wellbore, even when the bore is occupied by a drill string, by cutting through the drill string as the rams close off the well.
  46. Drilling rigs have a lot of components. This is a list of the major components on a drilling rig.
  47. The deeper the well, the more casing strings are required, especially offshore where formations are younger (softer) and not as compacted. In these areas there can be many different pay zones and many different lost circulation zones that must be cased off to continue drilling.
  48. Scratchers are used to scratch filter cake off the well walls, this creates a better surface for cement to bond. Centralizers are used to maintain uniformity in the cement job between the casing and the hole.The float shoe and the float collar are run one joint above the float shoe mainly to keep displacing fluid from going around the bottom of the casing.Stage collars are used in deeper holes so that cementing can be done in stages. Cement can only be placed in about 1,000 metre heights above the formations as the hydrostatic pressure of the heavier cement will break down a weaker zone. Several staged cement jobs can be required in a given hole. Some wells such as injection wells require casing to be cemented right up to surface.
  49. Scratchers are used to scratch filter cake off the well walls, this creates a better surface for cement to bond. Centralizers are used to maintain uniformity in the cement job between the casing and the hole.The float shoe and the float collar are run one joint above the float shoe mainly to keep displacing fluid from going around the bottom of the casing.Stage collars are used in deeper holes so that cementing can be done in stages. Cement can only be placed in about 1,000 metre heights above the formations as the hydrostatic pressure of the heavier cement will break down a weaker zone. Several staged cement jobs can be required in a given hole. Some wells such as injection wells require casing to be cemented right up to surface.
  50. Scratchers are used to scratch filter cake off the well walls, this creates a better surface for cement to bond. Centralizers are used to maintain uniformity in the cement job between the casing and the hole.The float shoe and the float collar are run one joint above the float shoe mainly to keep displacing fluid from going around the bottom of the casing.Stage collars are used in deeper holes so that cementing can be done in stages. Cement can only be placed in about 1,000 metre heights above the formations as the hydrostatic pressure of the heavier cement will break down a weaker zone. Several staged cement jobs can be required in a given hole. Some wells such as injection wells require casing to be cemented right up to surface.
  51. After the well is cemented, perforations are then created in the casing and cement wall to allow hydrocarbons to enter into the well.
  52. Fracturing a well a.k.a.Fracing, is done to start and maintain flow into the wellbore. After the well is drilled, the formations tend to heal, shutting down the wells ability to flow hydrocarbons into the well. Fracing is, essentially, the process of mixing propping agents, such as various sizes of sand or ceramic, even walnut hulls, in a thickened carrying fluid. The carrying fluid is then injected into the hydrocarbon formation under pressure, and the propping agents hold the fractures open after the pressure is released.
  53. Acidizing is done to reduce impediments to the flow of hydrocarbons. Before the well is ever drilled, the untapped hydrocarbons sit in the uppermost portions of the reservoir (atop any present water) inside the tiny pore spaces. Once penetrated by a well, the original equilibrium condition (pressure, temperature, and chemistry) is permanently changed with the introduction of water or oil-based drilling fluids loaded with suspended clays, and the circulation of cement slurries. The interaction of the introduced fluids with those originally present within the reservoir, coupled with pressure and temperature changes can cause a variety of effects which, in turn, can plug the numerous odd-shaped pores causing formation damage. Some of the types of damage include: scale formation, clay swelling, fines migration, and organic deposition. Sometimes a well must be acidized before a frac can be initiated.Petroleum engineers refer to the level of formation damage around the wellbore as skin effect. Acidizing is done to overcome this skin effect.
  54. In some wells, hydrocarbons have to be pumped out. Pumpjacks, a.k.a. horseheads, nodding donkeys, or thirsty birds are used. The pumpjack operates a mechanical pump installed on the bottom of a sucker rod string at the bottom of the well. This pump uses two ball and seat valves to life the formation fluids to surface.
  55. - Separator- Separates natural gas from crude oil- Treator – Separates natural gas and water from crude oil- Tanks – Store oil- Pumps – LACT – Lease Automatic Custody Transfer of oil