Petroleum industry

 The petroleum industry has evolved over the years to become a gigantic industry.

 Personnel in the areas of sciences & applied sciences are required: • Petroleum engineers

• Mechanical engineers

• Chemical engineers

• Electrical engineers

• Computer scientists

• Physicists

• Chemists

• Marine biologists &

• Geologists engineers

• Others

 There

2 broad classifications of global petroleum industry: • National Oil Companies (NOC) • International Oil Companies (IOC)

 Very large in terms of production, & some substantial in refining.

 They are owned by their respective governments.

 They account for about 33.33% of world crude production.

 Examples

of NOCs:

• Petronas (Malaysia) • Petroleos de Venezuela – PDVSA (Venezuela) • Saudi Aramco (Saudi Arabia) • Statoil Hydro (Norway)

• Petrobras (Brazil) • PEMEX (Mexico) • NNPC (Nigeria) • Sinopec, CNOOC (China) • GNPC (Ghana)

 Also known as Multinationals.  They have a significant proportion of their operations in several different countries.  There are 5 major IOCs: • British Petroleum (BP) • ChevronTexaco • ExxonMobil • Royal Dutch/Shell (simply Shell) • TotalFinaElf (simply Total)

 Strength of the “Big Five”:

• Production in more than 15 countries. • Refining in more than 15 countries. • Products marketing in more than 40 countries. • They account for approx. 13% of world production.

• They account for 21% world refining. • They account for 35% world product sales.

 Other IOCs are:

• Amerada Hess • Anadarko

• ConocoPhillips (simply Phillips) • ENI/Agip • Kerr McGee • Occidental • Repsol • Unocal

 The 2 main sectors in the industry are:  Upstream Sector • Producing

• Servicing  Downstream Sector

• Refining • Products sales • Transportation

 Basically involves the extraction & field treatment of oil & gas.  There are 2 divisions: • Research & Development (R&D) • Exploration & Production (E&P)

 Research

& Development (R&D)

• Scientific inquiry to discover facts, new or better

methodology & technology.  Exploration & Production (E&P)

• Field operations where petroleum deposits are being searched for and then produced.

 In the Upstream sector, there are 2 types of industry: • Producing Companies

• Servicing Companies

 “Officially” recognized to be directly involved in petroleum exploitation.  They are given permissions by the host country to operate within a carved out areas called Blocks.  Examples: ExxonMobil, Chevron, NPDC, Petrobras, Statoil, Saudi Aramco, Royal Dutch Shell, Total, etc.

 “Officially” recognized to be indirectly involved in petroleum exploitation.

 They provide sales & services to producing companies in terms of personnel, research, technology, field operations, and tools & equipment.  Examples: Transocean, Halliburton, Pride International, Schlumberger, BJ Services, Weatherford, Baker Hughes, etc.

 It involves refining, transportation, storage & marketing of petroleum products.  After the initial field treatment of petroleum (separation of gas, oil & water), it is transported to the refinery by truck, train, ship, or pipeline.

 The basic refining tool is Distillation.  Thermal cracking is used to increase the yield from distillation by subjecting the heavy crude oil to intense heat.  Alkylation involves recombination of small molecules produced by thermal cracking in the presence of a catalyst.  Catalytic cracking involves crude oil being cracked in the presence of a finely divided catalyst.