Håvard Devold Oil and gas production handbook An introduction to oil and gas production, transport, refining and petrochemical industry ISBN 978-82-997886-3-2 2 PREFACE  This handbook has been compiled for readers with an interest in the oil and gas industry. It is an overview of the main processes and equipment. When we searched for a suitable introduction to be used for new engineers, I discovered that much of the equipment is described in standards, equipment manuals and project documentation. Little material was found to quickly give the reader an overview of the entire oil and gas industry, while still preserving enough detail to let the engineer have an appreciation of the main characteristics and design issues. I have had many requests that downstream processes be included, and have restructured the book into Upstream, Midstream, Refining and Petrochemical, adding basic information on these facilities. The main focus of the book is still the upstream production process. This book is by no means a complete description on the detailed design of any part of this process, and many details have been omitted in order to summarize a vast subject. The material has been compiled from various online resources, as well as ABB and customer documents. I am grateful to my colleagues in the industry for providing their valuable input and comments. I have included many photos to give you, the reader, an impression of what typical facilities or equipment look like. Non-ABB photo sources are given below pictures; other pictures and illustrations are copyrighted by ABB. Edition 3.0 Oslo, August 2013 Håvard Devold ©2006 - 2013 ABB Oil and Gas Except as otherwise indicated, all materials, including but not limited to design, text, graphics, other files, and the selection and arrangement thereof, are the copyright property of ABB, ALL RIGHTS RESERVED. You may electronically copy and print a hard-copy of this document only for non-commercial or personal use, within the organization that employs you, provided that the materials are not modified and all copyright or proprietary notices are retained. Use of photos and graphics and references from other sources in no way promotes or endorses these products and services and is for illustration only. Pictures credited to Wikipedia are licensed under GNU Free Documentation License (GFDL) or Public Domain (PD) and are published here with the same license. Originals and full information can be found on www.wikimedia.org. b CONTENTS 1  Introduction ............................................................................................. 1  2  Facilities and processes ......................................................................... 4  2.1  Exploration ..................................................................................... 4  2.2  Production ..................................................................................... 5  2.2.1  Onshore ................................................................................ 7  2.2.2  Offshore ................................................................................ 8  2.3  Upstream process sections ......................................................... 12  2.3.1  Wellheads ........................................................................... 12  2.3.2  Manifolds and gathering ..................................................... 13  2.3.3  Separation ........................................................................... 14  2.3.4  Metering, storage and export .............................................. 15  2.3.5  Utility systems ..................................................................... 16  2.4  Midstream .................................................................................... 16  2.4.1  Gas Plants .......................................................................... 16  2.4.1  Gas compression ................................................................ 17  2.4.2  Pipelines ............................................................................. 17  2.4.1  LNG liquefaction and regasification facilities ...................... 18  2.5  Refining ....................................................................................... 18  2.6  Petrochemical .............................................................................. 19  3  Reservoir and wellheads ...................................................................... 21  3.1  Crude oil and natural gas ............................................................ 21  3.1.1  Crude oil .............................................................................. 21  3.1.2  Natural gas .......................................................................... 23  3.1.3  Condensates ....................................................................... 24  3.2  The reservoir ............................................................................... 24  3.3  Exploration and drilling ................................................................ 26  3.4  The well ....................................................................................... 29  3.4.1  Well casing .......................................................................... 29  3.4.2  Completion .......................................................................... 31  3.5  Wellhead ...................................................................................... 32  3.5.1  Subsea wells ....................................................................... 34  3.5.2  Injection ............................................................................... 35  3.6  Artificial lift ................................................................................... 35  3.6.1  Rod pumps .......................................................................... 35  3.6.2  ESP ..................................................................................... 36  3.6.3  Gas lift ................................................................................. 36  3.6.4  Plunger lift ........................................................................... 37  3.7  Well workover, intervention and stimulation ................................ 38  4  The upstream oil and gas process ....................................................... 40  41  4.1  Manifolds and gathering .............................................................. 42  I 4.1.1  Pipelines and risers ............................................................ 42  4.1.2  Production, test and injection manifolds ............................. 42  4.2  Separation ................................................................................... 43  4.2.1  Test separators and well test .............................................. 43  4.2.2  Production separators ......................................................... 43  4.2.3  Second stage separator ...................................................... 45  4.2.4  Third stage separator .......................................................... 45  4.2.5  Coalescer ............................................................................ 46  4.2.6  Electrostatic desalter .......................................................... 46  4.2.7  Water treatment .................................................................. 46  4.3  Gas treatment and compression ................................................. 48  4.3.1  Heat exchangers ................................................................. 48  4.3.2  Scrubbers and reboilers ...................................................... 49  4.3.3  Compressors, anti-surge and performance ........................ 50  4.4  Oil and gas storage, metering and export ................................... 55  4.4.1  Fiscal metering .................................................................... 55  4.4.2  Storage ............................................................................... 57  4.4.3  Marine loading .................................................................... 58  5  Midstream facilities ............................................................................... 59  5.1  Gathering ..................................................................................... 59  5.2  Gas plants ................................................................................... 59  5.2.1  Gas composition ................................................................. 59  5.3  Gas processing ............................................................................ 62  5.3.1  Acid gas removal ................................................................ 63  5.3.2  Dehydration ......................................................................... 64  5.3.3  Mercury removal ................................................................. 64  5.3.4  Nitrogen rejection ................................................................ 65  5.3.5  NGL recovery and treatment .............................................. 65  5.3.6  Sales gas specifications ..................................................... 65  5.4  Pipelines ...................................................................................... 67  5.4.1  Pipeline terminal ................................................................. 67  5.4.2  Gas Pipelines, compressor and valve stations ................... 67  5.4.3  Liquid pipelines, pump and valve stations .......................... 68  5.4.4  Pipeline management, control and safety .......................... 69  5.5  LNG ............................................................................................. 70  5.5.1  LNG liquefaction ................................................................. 71  5.5.2  Storage, transport and regasification .................................. 76  6  Refining ................................................................................................ 77  6.1  Fractional distillation .................................................................... 77  6.2  Basic products ............................................................................. 78  6.3  Upgrading and advanced processes ........................................... 80  6.4  Blending and distribution ............................................................. 85  7  Petrochemical ....................................................................................... 87  II 7.1  Aromatics ..................................................................................... 88  7.1.1  Xylene and polyester chain ................................................. 89  7.1.2  Toluene, benzene, polyurethane and phenolic chain ......... 90  7.1.3  Benzene and styrenic chain, derivatives ............................ 91  7.2  Olefins ......................................................................................... 92  7.2.1  Ethylene, derivatives ........................................................... 93  7.2.2  Propylene, derivatives ........................................................ 94  7.2.3  Butadiene, butylenes, and pygas, derivatives .................... 96  7.3  Synthesis gas (syngas) ............................................................... 97  7.3.1  Methanol based products ................................................... 98  7.3.2  Ammonia based products ................................................... 99  8  Utility systems .................................................................................... 100  8.1  Process control systems............................................................ 100  8.1.1  Safety systems and functional safety ............................... 103  8.1.2  Emergency shutdown and process shutdown .................. 105  8.1.3  Fire and gas system ......................................................... 107  8.1.4  Control and safety configuration ....................................... 108  8.1.5  Telemetry/SCADA ............................................................ 110  8.2  Digital oilfield ............................................................................. 111  8.2.1  Reservoir management and drilling operations ................ 112  8.2.2  Production optimization .................................................... 112  8.2.3  Asset optimization and maintenance support ................... 113  8.2.4  Information management systems (IMS) .......................... 115  8.2.5  Training simulators ........................................................... 116  8.3  Power generation, distribution and drives ................................. 117  8.4  Flare and atmospheric ventilation ............................................. 119  8.5  Instrument air ............................................................................. 120  8.6  HVAC ......................................................................................... 120  8.7  Water systems ........................................................................... 120  8.7.1  Potable water .................................................................... 120  8.7.2  Seawater ........................................................................... 121  8.7.3  Ballast water ..................................................................... 121  8.8  Chemicals and additives ........................................................... 121  8.9  Telecom ..................................................................................... 124  9  Unconventional and conventional resources and environmental effects 127  9.1  Unconventional sources of oil and gas ...................................... 127  9.1.1  Extra heavy crude ............................................................. 128  9.1.2  Tar sands .......................................................................... 128  9.1.3  Oil shale ............................................................................ 129  9.1.4  Shale gas and coal bed methane ..................................... 130  9.1.5  Coal, gas to liquids and synthetic fuel .............................. 131  9.1.6  Methane hydrates ............................................................. 132  III 9.1.7  Biofuels ............................................................................. 133  9.1.8  Hydrogen .......................................................................... 135  9.2  Emissions and environmental effects ........................................ 135  9.2.1  Indigenous emissions ....................................................... 136  9.2.2  Greenhouse emissions ..................................................... 136  9.2.3  Carbon capture and sequestration ................................... 139  10  Units ................................................................................................... 141  11  Glossary of terms and acronyms ....................................................... 143  12  References ......................................................................................... 147  13  Index ................................................................................................... 148  - IV 1 Introduction Oil has been used for lighting purposes for many thousands of years. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds. Historically, we know the tales of eternal fires where oil and gas seeps ignited and burned. One example is the site where the famous oracle of Delphi was built around 1,000 B.C. Written sources from 500 B.C. describe how the Chinese used natural gas to boil water. It was not until 1859 that "Colonel" Edwin Drake drilled the first successful oil well, with the sole purpose of finding oil. The Drake Well was located in the middle of quiet farm country in northwestern Pennsylvania, and sparked the international search for an industrial use for petroleum. Photo: Drake Well Museum Collection, Titusville, PA These wells were shallow by modern standards, often less than 50 meters deep, but they produced large quantities of oil. In this picture of the Tarr Farm, Oil Creek Valley, the Phillips well on the right initially produced 4,000 1 barrels per day in October, 1861, and the Woodford well on the left came in at 1,500 barrels per day in July, 1862. The oil was collected in the wooden tank pictured in the foreground. As you will no doubt notice, there are many different-sized barrels in the background. At this time, barrel size had not been standardized, which made statements like "oil is selling at $5 per barrel" very confusing (today a barrel is 159 liters (see units on p. 141). But even in those days, overproduction was something to be avoided. When the "Empire well" was completed in September 1861, it produced 3,000 barrels per day, flooding the market, and the price of oil plummeted to 10 cents a barrel. In some ways, we see the same effect today. When new shale gas fields in the US are constrained by the capacity of the existing oil and gas pipeline network, it results in bottlenecks and low prices at the production site. Soon, oil had replaced most other fuels for motorized transport. The automobile industry developed at the end of the 19th century, and quickly adopted oil as fuel. Gasoline engines were essential for designing successful aircraft. Ships driven by oil could move up to twice as fast as their coal- powered counterparts, a vital military advantage. Gas was burned off or left in the ground. Despite attempts at gas transportation as far back as 1821, it was not until after World War II that welding techniques, pipe rolling, and metallurgical advances allowed for the construction of reliable long distance pipelines, creating a natural gas industry boom. At the same time, the petrochemical industry with its new plastic materials quickly increased production. Even now, gas production is gaining market share as liquefied natural gas (LNG) provides an economical way of transporting gas from even the remotest sites. With the appearance of automobiles and more advanced consumers, it was necessary to improve and standardize the marketable products. Refining was necessary to divide the crude in fractions that could be blended to precise specifications. As value shifted from refining to upstream production, it became even more essential for refineries to increase high-value fuel yield from a variety of crudes. From 10-40% gasoline for crude a century ago, a modern refinery can get up to 70% gasoline from the same quality crude through a variety of advanced reforming and cracking processes. Chemicals derived from petroleum or natural gas – petrochemicals – are an essential part of the chemical industry today. Petrochemistry is a fairly young 2