PetroJournal - October 2018

PETRO JOURNAL

OCTOBER 2018 EDITION JOURNALISM SPE ITS SC 2018/2019

Monthly Recap

Flash News

Company Profile

Flash Course Competition Info

INDEX

INTRO SMART COMPETITION An SPE ITS SC event to provide ITS students a basic knowledge of Smart Competition

SCIENCE COURSE 1 The topic is Introduction to Petroleum Industry (Upstream - Downstream) and Petroleum System

Chemical Engineering Dept.

October 3rd, 2018

The speaker is experienced at participating and winning Smart Competitions

ITS Library Hallway September 17 - 21, 2018

There was also a little simulation of Smart Competition

MONTHLY RECAP

BENCHMARKING WIH AIChE ITS SC

A benchmarking with AIChE ITS SC at E401 Chemical Engineering Dept.Our president and vice president were sharing about SPE ITS SC. Also there were some forum group discussion with each department from both organization

MONTHLY RECAP

ACE YOUR CV / LINKEDIN

INTRODUCTION TO OIL RIG DESIGN COMPETITION

First event of Soft Skill Division with Dinis Triandra P as speaker.

An SPE ITS SC event to provide ITS students a basic knowledge of Oil Rig Design Competition

This event was held to train how to make a good CV and LinkedIn

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

The speaker is experienced at participating and winning Oil Rig Design Competition

Speaker also gives tips and trick to win Oil Rig Design Competition Chemical Engineering (O-107) November 7th, 2018

MONTHLY RECAP

FLASH NEWS

Canada’s economy unexpectedly expands on oil extraction, financial services

By GREG QUINN Bloomberg Wed., Oct. 31, 2018

PHOTO: LARRY MACDOUGAL / THE CANADIAN PRESS FILE PHOTO Canada’s economy grew for a seventh consecutive month in August, led by crude oil and financial services, keeping the momentum going for higher interest rates.

Gross domestic product climbed 0.1 per cent on the month, Statistics Canada said Wednesday from Ottawa. That beat the median estimate in a Bloomberg survey for an unchanged reading.

Alberta’s oil production rose to a record and higher stock and bond trading boosted the contribution of financial services companies by the most since May 2017. Utilities and the public sector also added to the growth.

The economy is at or near full capacity, according to the Bank of Canada, which this month raised interest rates for a fifth time since July 2017 and signalled more hikes are needed to bring monetary policy to neutral. Other major indicators back up the idea the economy no longer needs stimulus, with inflation around 2 per cent and unemployment close to record lows.

FLASH NEWS

The gain keeps the economy on track for annualized growth of around 2 per cent, meaning the central bank could raise interest rates again in January, said Brian DePratto, senior economist at Toronto-Dominion Bank. “Combine a healthy economic outlook with the tilt towards hawkishness that accompanied last week’s rate hike, and you have the recipe for further monetary tightening,” he wrote in a research note.

While the August GDP gain was a surprise, it lacked the breadth seen in some past reports, with 12 of 20 major industries posting declines. The Canadian dollar initially erased declines on the report before falling back. It was 0.2 per cent weaker at $1.3135 against the U.S. dollar at 9:54 a.m. in Toronto.

Report Highlights Non-conventional crude oil extraction was a major driver of growth in August, rising 3.2 per cent. The other major gain was 1 per cent in financial services Statistics Canada revised the June GDP figure to a 0.1 perwhich turned what was two straight months of expansion into seven. There was a similar run of growth last year when Canada led the G7 The output of utilities companies rose 0.8 per cent, reflecting a second month of hot summer weather in Canada. The other growth driver in August was the public sector’s 0.2 per cent rise The 2018 real estate slowdown continued with a 0.4 per cent fall in construction.

Residential projects declined 1.6 per cent and the decline over the past three months is the largest since the start of 2009, Statistics Canada said Manufacturing was the biggest drag with a 0.6 per cent fall, led by shutdowns at auto assembly plants. Retail and wholesale sales also weakened in August and production from copper and nickel mines fell to the lowest since 2010

Source: https://www.thestar.com/business/economy/2018/10/31/canadas-economy-unexpectedlyexpands-on-oil-extraction-financial-services.html

COMPANY PROFILE

Baker Hughes, a GE company (BHGE) is an international industrial service company and one of the world's largest oil field services companies. As of July 2017 Baker Hughes is 62.5% owned by General Electric Company and 37.5% publicly traded (NYSE:BHGE) [3]. It operates in more than 120 countries[4], providing the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production and reservoir consulting. Baker Hughes, a GE Company has its headquarters in the legacy BHI headquarters in Houston, Texas.

PHOTO: BHGE.COM

HISTORY BHGE is the combination of many companies that have developed and introduced technology to serve the petroleum service industry. Their combined history dates back to the early 1900s. During its history, Baker Hughes has acquired and assimilated numerous oilfield pioneers including: Brown Oil Tools, CTC, EDECO, and Elder Oil Tools (completions); Milchem and Newpark (drilling fluids); EXLOG (mud logging); Eastman Christensen and Drilex (directional drilling and diamond drill bits); Teleco (measurement while drilling); Tri-State and Wilson (fishing tools and services); Aquaness, Chemlink and Petrolite (specialty chemicals), Western Atlas (seismic exploration, well logging), BJ Services Company (pressure pumping).

PHOTO: SCHLUMBERGER PHOTO: GE OIL AND GAS

COMPANY PROFILE

Wireline provides the information necessary to evaluate subsurface formation rocks and fluids to plan and monitor well construction, and to monitor and evaluate well production. Wireline offers both openhole and cased-hole services, including wireline perforating. Slickline services provide downhole mechanical well intervention. Testing & Process provides exploration and production pressure and flow-rate measurement services both at the surface and downhole. Through its Process Systems offering, Testing & Process provides equipment for the upstream, midstream and downstream separation of oil, gas, and produced water and water injection systems. Testing & Process also provides tubing-conveyed perforating services.

SIS sells software and provides consulting, information management and information technology (IT) infrastructure services to customers in the oil and gas industry. SIS also offers expert consulting services for reservoir characterization, field development planning, as well as petrotechnical data services and training solutions. ISM provides coordination and management of its services, products, and third parties in projects around the world.

PHOTO: FUELFIX.COM

COMPANY PROFILE

DIVISIONS BHGE has acquired various different companies, allowing for a wider range of services to customers. These legacy companies were divided into specialised divisions, each responsible for a specific area of oilfield service expertise.

DRILLING AND EVALUATION GROUP Hughes Christensen - Hughes Christensen provides Tricone, PDC, Hybrid PDC/Tricone bits, Natural Diamond Drill Bits, Impregnated Diamond drill bits, ream-while-drilling tools and drilling optimization services.

Baker Atlas - Baker Atlas provides wireline-conveyed well logging, data analysis and perforating services for formation evaluation, production and reservoir management.

Baker Hughes Drilling Fluids - Baker Hughes Drilling Fluids provides fluids systems and services. It is also involved in remediation of the well. Making Baker Hughes Drilling Fluids, somewhat, a part of completion and production.

Baker Hughes INTEQ - INTEQ provides directional drilling, measurement-whiledrilling (MWD), logging-while-drilling (LWD) and wellsite information services.

COMPLETION AND PRODUCTION GROUP Baker Oil Tools (BOT) Baker Petrolite - Baker Petrolite provides chemical technology solutions for hydrocarbon production, transportation and processing, and also delivers pipeline integrity services.

Centrilift - Centrilift provides artificial lift systems, including electric submersible pumps (ESP) and progressive cavity pump systems, as well as specific engineering, project management and well monitoring services.[22] BJ Services Company - BJ Services provides pressure pumping services used in the completion and cementing of new oil and natural gas wells and in remedityial work on existing wells, as well as oilfield services including completion tools, completion fluids, casing and tubular services, and production chemical services. In 2017, BJ Services was spun off from Baker Hughes retaining a minor stake. This was done before the acquisition of Baker Hughes by GE.

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

FLASH COURSE

Petroleum Industry & Petroleum System Introduction Indonesia itself isn’t very rich in the oil & gas resource and reserves. But fortunately, most service companies are open and is global. Schlumberger, British Petroleum, and Total are some examples of this.

Generally speaking, upstream companies can be divided into 2: operating companies and service companies. Operating companies are essentially the manager who arranges and makes the deal before exploitation is done.

Meanwhile, the service companies provide the equipments and workers to conduct the exploitation. Some may prefer operating companies because they don’t directly work on the field.

Service companies often take the blame on problems throughout the exploitation process. Some wellknown service companies are Halliburton and Schlumberger.

Upstream & Downstream: Upstream industry involves the exploration and exploitation of oil and gas. Downstream, on the other hand, is all about refining.

Indonesia is known for its richness in many natural resources, including oil and gas. But in reality, oil is not very abundant in Indonesia, compared to America and Middle East countries. Indonesia is rich in gas.

Three biggest gas-producing basins in Indonesia are the West Natuna Basin, the Mahakam River Basin, and the Northeast Java Basin. While for oil, the Central Sumatra Basin produces the most oil.

Not all basins can have their oils extracted, depending on the crude oil. North east Java basin is an example. Also, not all hydrocarbons found in basins are filled with oil or gas. It depends on the type of fossils accumulated. Indonesia is actually rich in gases compared to oils. But oil can be found abundant in Central Sumatra, for example in the Minas Oilfield.

FLASH COURSE

Reserves (Upstream): Before begins an exploration after a source is found, economic considerations must be done. It includes the volume of the reserve, maturity of the oil, the cost of production, and of course the profit. If it is decided that production is to be carried out, tender with the government and its regulations is done.

One drilling operation can cost up to 1 million dollars. In the oil & gas industry, the average possibility of obtaining petroleum is 3 out of 10. Given these conditions, when the oil price is low, local companies tend to shut down their operations because the cost gets higher than the profit. This is why our country chooses to import oil. Only when the price of oil gets higher do companies seek out workers to run their operations.

Petroleum System: The petroleum system consists of 3 important processes: migration (the movement of hydrocarbons to a reservoir), accumulation (the collection of hydrocarbons in a reservoir), and generation (the maturation of the hydrocarbons). These 3 processes also need 5 basic elements to form oil and gas, which are source rock, reservoir rock, seal/cap rock, trapping, and migration pathway. All of these things must be considered for operations. For example, the existence of seal. Shale oil is a solution to this because it doesn’t need a petroleum system to form. In America, many other unconventional energy reserves are said to be plenty.

FLASH COURSE

Source Rock Concept: After oil has been drilled, chemists analyze this sample oil to know its level of maturity (whether it’s mature enough, immature or too mature) and to determine its kerogen type.

The result of this analysis is used to figure out the quality of the oil and what the oil can be developed into (e.g. solar, fuel with what octane number).

Again, the type of organic matters determines the content of a reservoir. If algae is generated, it commonly makes oil reservoir. Mollusca and microscopic plant remains create gas reservoirs. While a combination of various organisms make a reservoir that contains both oil and gas.

Reservoir Porosity and Permeability: Reservoir in the system is the collecting area of the oil.

Seal covers close the reservoir and the oil inside it. Porosity is a measure of how much capacity of fluid a rock can store. Therefore, reservoirs have to be porous. Meanwhile, seals must not be porous so that the oil does not escape. Porosity is also affected by the packing of spheres and the variance of grain size. The Middle East is relatively rich in oil because it is mostly made up of deserts with grains of the same size. The porosity of reservoirs in the Middle East can reach 40%.

Porosity can be divided into 2: effective porosity and ineffective porosity. Ineffective porosity occurs when grains are cemented together through chemical processes and thus, cannot allow oil to pass through them.

FLASH COURSE

Drilling Operation: The drilling operation has been designed for safety. The drill bit is equipped with casing and there will be drilling mud to aid the direction of the drilling. There are tens of drilling mud types and it will be determined depending on the lithology. But if the casing covering the reservoir is not strong enough to hold the force of the drill, there will be leakage. Blowout prevention (BOP) is also done for this with risk factor measurement.

Earth Structure: The earth is consisted of 3 main layers: the core, mantle, and crust. Core is divided into inner and outer. Mantle is the vast layer. But in the petroleum industry, only the crust is to be considered. Because until now, most drilling only reach the crust of our earth. The crust itself is divided into continental and oceanic. Indonesia itself is very complex in its tectonic structure. In fact, many foreign scientists are highly interested in Indonesia’s geology because both the Weber and Wallace lines pass through Indonesia. With its complex geology, Indonesia also has a 40% potential for geothermal energy but has only used 2%.

Source: https://www.britannica.com/place/Pangea https://www.nationalgeographic.com/science/earth/the-dynamic-earth/plate-tectonics/ https://geomaps.wr.usgs.gov/sfgeo/liquefaction/aboutliq.html

COMPETITION INFO

COMPETITION INFO

“Life is what happens to you while you're busy making other plans.�

John Winston Ono Lennon

PHOTO: FORBES

An Oil Reservoir is Not a Giant Underground Pool Contrary to widespread belief, an oil reservoir is not a giant pool of liquid beneath the ground that can easily be sucked onto the surface. Rather, the oil is trapped in the pore spaces between rock crystals and soil grains.

Think of an oil reservoir as a giant sponge soaked in oil. It all comes down to how oil is formed i.e. the burial, compression and heating of dead organisms underneath sedimentary rocks over millions of years.

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