PetroJournal - November 2018

PETRO JOURNAL

NOVEMBER 2018 EDITION JOURNALISM SPE ITS SC 2018/2019

Monthly Recap

Flash News

Company Profile

Flash Course Competition Info

INDEX

ENTREPRETRAIN 1.0 We were having discussion and interview with Gilang Saysar Putra Balitar as the owner of Gilang Store, Mysneakersby and Gilang specs.

Industrial Engineering E-109 November 9th 2018

SCIENCE COURSE 2 The topic is Horizontal vs Vertical Drilling conducted by Mr. Indra Onggo from Kangean Energy Indonesia. These course took places at GM-103-104, Geomatical Engineering

GM-103, 104, Geomatical Engineering - November 2th 2018

MONTHLY RECAP

INSPECT 2018

Our first trip in company visit program had taken place at PT Petrokimia Gresik, Gresik, East Java.

November 7th, 2018

MONTHLY RECAP

GUEST LECTURE 1

SPE DONATION DAY (SPEND)

The First Guest Lecture: "Enhanced Oil Recovery" with Mr Buyung Afrianto, MSc, CEng from Petrogas Jatim Utama and Mr Muhammad Hasto Nugroho, ST from Medco Energy as our speakers.

Currently we’re having SPE Donation where there are blood donor, health check, and clothes & books donation at ITS Library 1st Floor, the event is held by Community Outreach division SPE ITS SC.

Chemical Engineering (O-103) November 7th, 2018

Theater A ITS - November 15th, 2018

Chemical Engineering (O-107) November 7th, 2018

MONTHLY RECAP

FLASH NEWS

Exxon Will Use Wind, Solar to Produce Crude Oil in Texas

By Chris Martin and Kevin Crowley Bloomberg November 29, 2018

Exxon Mobil Corp. will use renewable energy to produce oil in West Texas.

Under 12-year agreements with Denmark’s Orsted A/S, Exxon will buy 500 megawatts of wind and solar power in the Permian Basin, the fastest growing U.S. oil field. It is the largest ever renewable power contract signed by an oil company, according to Bloomberg NEF. Terms weren’t disclosed.

“It will be interesting to see how the other oil majors respond,” Kyle Harrison, a BNEF analyst, said. “A purchase like this has historically been unprecedented.”

Exxon, which was sued by investors who alleged the company downplayed risks of global warming, is turning to clean energy as it becomes cheap enough to compete with fossil fuels. The wind and solar farms are being built in a region where electricity demand is soaring as oil production grows.

Power Battle

Wind, solar are becoming cheaper than conventional electricity sources Source: Lazard Ltd. Note: Data shows mean unsubsidized levelized cost of energy

FLASH NEWS

“We frequently evaluate opportunities to diversify our power supply and ensure competitive costs,” Julie King, a spokeswoman for the Irving, Texas-based oil producer, said in an email. The company denies misleading investors about climate change.

Booming production in the Permian Basin is helping Exxon offset declining output elsewhere in the world. But output in the region has grown so fast that infrastructure including pipelines and power plants have struggled to keep up.

One area of the Permian, called the Delaware Basin, consumed the equivalent of 350 megawatts this summer, tripling its load from 2015. That’s enough to power about 280,000 U.S. homes. Providers say demand is likely to triple again by 2022.

Half the power Exxon will buy will come from the Sage Draw wind farm, which Orsted plans to finish building in 2020, according to a slide from an investor presentation Wednesday. The rest will be from the Permian Solar farm, scheduled to be finished in 2021.

Orsted, the world’s largest developer of offshore wind farms, has deep roots in fossil fuel. It was previously called Danish Oil and Natural Gas, or Dong, before shifting toward renewables about a decade ago. The company divested its upstream oil and gas business last year and rechristened itself Orsted, borrowing the name of a scientist who discovered electromagnetism in the 1800s.

Texas already has the most wind power of any state, with more than 23 gigawatts. That’s triple the next biggest market, Oklahoma. Texas is the fifth largest solar market, with about 2.6 gigawatts. That’s forecast to double next year, according to Morningstar Inc. In August, Exxon was said to be seeking renewable energy under long-term contracts from a group of potential developers.

— With assistance by Brian Eckhouse

Source: https://www.bloomberg.com/news/articles/2018-11-28/oil-giant-exxon-turns-to-windsolar-for-home-state-operations

COMPANY PROFILE

BP plc (formerly The British Petroleum Company plc and BP Amoco plc) is a British multinational oil and gas company headquartered in London, England. It is one of the world's seven oil and gas "supermajors", whose performance in 2012 made it the world's sixth-largest oil and gas company, the sixth-largest energy company by market capitalization and the company with the world's 12th-largest revenue (turnover).

It is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy interests in biofuels and wind power.

PHOTO: BP.COM

HISTORY BP originated in the activities of William Knox D'Arcy, an adventurer who had made a fortune in Australian mining. In 1901 D'Arcy secured a concession from the Grand Vizier of Persia (now known as Iran) to explore for petroleum throughout most of his empire. The search for oil proved extremely costly and difficult, since Persia was devoid of infrastructure and politically unstable. Within a few years D'Arcy was in need of capital. Eventually, after intercession by members of the British Admiralty, the Burmah Oil Company joined D'Arcy in a Concessionary Oil Syndicate in 1905 and supplied further funds in return for operational control. In May 1908 oil was discovered in the southwest of Persia at Masjid-i-Suleiman, the first oil discovery in the Middle East. The following April the Anglo-Persian Oil Company was formed, with the Burmah Oil Company holding most of the shares.

COMPANY PROFILE

PHOTO: BRITISH PETROLEUM The dominant figure in the early years of the Anglo-Persian Oil Company was Charles Greenway. Greenway began his career in the firm of managing agents who handled the marketing of Burmah Oil's products in India. Invited by Burmah Oil to help in the formation of Anglo-Persian Oil, he became a founding director, was appointed managing director in 1910, and took the position of chairman in 1914. The first few years of the company's existence were extremely difficult, and it survived as an independent entity largely through Greenway's skill. Although Anglo-Persian Oil had located a prolific oil field, it encountered major problems in refining the crude oil. The company also lacked a tanker fleet and a distribution network to sell its products.

For a time Anglo-Persian Oil risked being absorbed by one of the larger oil companies, such as the Royal Dutch/Shell group, with whom it signed a ten-year marketing agreement in 1912. But in 1914 Greenway preserved the independence of Anglo-Persian Oil by a unique agreement with the British government. Under the terms of this agreement, negotiated with Winston Churchill, then first lord of the Admiralty, Greenway signed a long-term contract with the British Admiralty for the supply of fuel oil, which the Royal Navy wished to use as a replacement for coal.

COMPANY PROFILE

EXPLORATION AND PRODUCTION BP upstream's activities include exploring for new oil and natural gas resources, developing access to such resources, and producing, transporting, storing and processing oil and natural gas. The activities in this area of operations take place in 29 countries worldwide

PHOTO: BRITISH PETROLEUM REFINING AND MARKETING BP downstream's activities include the refining, marketing, manufacturing, transportation, trading and supply of crude oil, petrochemicals and petroleum products.[ Downstream is responsible for BP's fuels, lubricants and petrochemical businesses and has major operations located in Europe, North America and Asia.

PHOTO: BRITISH PETROLEUM

ALTERNATIVE AND LOW CARBON ENERGY

PHOTO: BRITISH PETROLEUM

BP was the first of supermajors expanding its focus on energy sources other than fossil fuels. It established an alternative and low carbon energy business in 2005, with plans to invest $8 billion over a 10year period into renewable energy sources including solar, wind, and biofuels, and non-renewable sources including natural gas and hydrogen power. According to the company, it spent a total of $8.3 billion in these projects through completion in 2013.

Source: https://https://en.wikipedia.org/wiki/BP

FLASH COURSE

Petroleum Industry in Western and Eastern Indonesia Introduction Geographically, Indonesia is located between the Australian Continent and the Asian Continent, and also between the Indian and Pacific Oceans. Tectonically, Indonesia is also very interesting because of its complexity. On the western and southern part, the Eurasian Tectonic Plate encounters the Indo-Australian Tectonic Plate, resulting the subduction of Indo-Australia Plate beneath the Eurasian Plate.

The interactions between those tectonic plates have led to the positive impact on oil and gas prospectively in Indonesia. Many basins, especially those that currently located behind the island arc, become the place of hydrocarbon accumulation.

Beside it defines the border between Asia’s and Australia’s flora and fauna, The Wallace Line is also closely related to paleogeography change that separates geology of Asia and Australia. Hence, it is also could be used to determine the boundary between Western and Eastern Indonesia, as it is ultimately drawn with the consideration of oil and gas basin borders.

FLASH COURSE

History of Petroleum in Indonesia The oil well in Indonesia was first found in 1871 in Majalengka. But it was only a drilling well and was not producable. First commercial oil was produced in North Sumatra in 1885. After this, many exploration was conducted and new oil fields were discovered, such as Kruka (1887), Kampong Minyak (1896), Sumpal (1897), Sanga-sanga (1897), Perlak (1900), and Ledok (1901). These fields were only focused in Java and Sumatra Islands, but not until 1936 when the first field in Papua was discovered, it was called Klamono. They were all onshore fields and as the technology grew rapidly to more advanced innovations, the offshore production was began in around 1970s.

Undiscovered Eastern Although now oil and gas production and exploration in Indonesia have gone everywhere, there are still abundant undiscovered fields. According to SKK Migas’s Book Memoir, exploration wells in Western Indonesia have reached 90% but only 10% in Eastern Indonesia out of 46 sedimentary basins, which means only two of them are explored. Papua and Papua New Guinea both have many similarities in geography structures, but exploration wells and drilling wells in Papua New Guinea have arrived at more than a hundred while Papua has only less than 10.

FLASH COURSE

Western VS Eastern The imbalance number of wells in Western and Eastern Indonesia is also caused by several differences of basin characteristic.

The Basins Differences in Western and Eastern Indonesia Western Indonesia Oil-prone Bigger size Tertiary source rock The age of this source rock is younger. This source rock accumulation has been mainly restricted to two time periods; Middle-Upper Miocene and Pliocene.

It spans from around 14.8 to 14.5 million years ago and 5.3 to 2.5 million years ago.

Back Arc Basins Back-arc basins are geologic basins, submarine features associated with island arcs and subduction zones.

They are found at some convergent plate boundaries, presently concentrated in the western Pacific Ocean. Most of them result from tensional forces caused by oceanic trench rollback (the oceanic trench is wandering in the seafloor direction) and the collapse of the edge of the continent.

Eastern Indonesia Gas-prone Smaller size Pre-Tertiary source rock The age of this source rock is older.

This source rock accumulation has been mainly restricted to three time periods; Late Permian, Late Triassic, Early-Middle Jurassic. It spans from around 299 to 130 million years ago.

Consists of Oceanic Basins, Foreland Basins, and Forearc Basins Oceanic basins are basins located under the sea.

Foreland basins develop adjacent and parallel to a mountain belt. Foreland basins form because the immense mass created by crustal thickening associated with the evolution of a mountain belt causes the lithosphere to bend.

A forearc is the region between an oceanic trench and the associated volcanic arc.

COMPETITION INFO

"There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.�

John Fritzgerald Kennedy 35th President of the United States of America

PHOTO: THARAWAT MAGAZINE

Saudi Aramco: The Most Valuable Company Saudi Aramco, the world’s largest exporter of crude oil, not only owns both the world’s largest onshore and offshore oil fields, but is also the world’s most valuable company.

Although Apple is “officially” the world’s most valuable company at over $700 billion, Saudi Aramco is said to be worth between $1.25 trillion to $7 trillion, dwarfing the value of Apple.

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