Petroleum Engineering
Content
Introduction to Oil and Gas in
Trinidad and Tobago
Dr. David Alexander
Monday 2nd February, 2015
History of Trinidad & Tobago’s Energy
Sector
• 1866 - First successful onshore oil
well
• 1904 - Mines department formed
, now MOEEI
• 1908 - Commercial onshore oil
production
• 1910 - First export of oil from
Brighton
• 1968 - Commercial oil discovered
off Mayaro
• 1972 – National Petroleum (NP)
formed
2
History of Trinidad & Tobago’s
Energy Sector
• 1975 - National Gas Company
(NGC)
• 1978 - Highest oil production
230,000 bopd
• 1980’s - Natural Gas based
Petrochemical Plants established
at Pt Lisas
• 1990’s - Significant gas discovered
east coast marine area
• 1999 - First cargo LNG exported
from Pt. Fortin
3
Importance of the Petroleum Sector
• Trinidad and Tobago’s
Population - 1. 3 million
• Petroleum Jobs - <5% of
direct employment
• Energy sector provides
approximately 75% of
foreign currency
4
Trinidad & Tobago’s Production Profile
T&T Oil & Gas Production Profile:- 1970 to 2008
4500
250
200
3500
3000
150
2500
2000
100
1500
ALNG
1000
50
500
0
1970
0
1975
1980
1985
1990
1995
2000
2005
Year
Gas Rate (mmscfd)
5
Oil Rate (mbopd)
Gas Rate (mmscfd)
4000
Petroleum Programmes at UTT
Petroleum Engineering
What is petroleum engineering?
• Petroleum engineering is a field of engineering
concerned with the activities related to the
production of hydrocarbons, which can be either
crude oil or natural gas.
7
Vision
• Vision of the UTT is to be an entrepreneurial university
that:
– produces graduates with broad integrated skills
– maximises the benefit of new and emerging
technologies; and
– undertakes R&D activities aimed to keep Trinidad
and Tobago in the vanguard of niche technologies of
key importance to the nation
Mission
• To be an entrepreneurial university designed
– discover and develop entrepreneurs
– commercialise research and development
– spawn companies for wealth generation and sustainable
job creation
towards the equitable enhancement of the quality of
life of all individuals, families and communities of
the Republic of Trinidad and Tobago and the
Caribbean”
The UTT Brand
• World class standards – Education with a global
vision
• Industry-ready graduates
• Seamless articulation
• Entrepreneurship inside
• Partnering with industry
Accreditation
Energy Institute of the UK
B.Sc. Petroleum Engineering 2004 - 2007
M.Sc. Petroleum Engineering 2007 - 2015
M.Sc. Petroleum Technology 2006 – 2007
B.A.Sc. Petroleum Engineering 2011- 2015
M.Eng. Petroleum Engineering 2010 – 2015
M.Sc. Reservoir Engineering 2011- 2015
11
Doctor of Philosophy
(Ph.D.)
Programme
Levels
Master of Philosophy
(M.Phil.)
Master of Science (M.Sc.)
Master of Engineering (M.Eng.)
Bachelor of Applied Science
(B.A.Sc.)
National Engineering Technician’s Diploma
(N.E.T.D.)
National Engineering Technician’s
Diploma (NETD)
Entry Requirements:
• Passes in at least 5 subjects at CXC General
Proficiency (Grades I, II or III) inclusive of
Mathematics, English Language, Chemistry and
Physics
Duration of Study:
2-Years Full Time / 4-Years Part-Time
B.A.Sc. Programme
Entry Requirements
Pass in CAPE I and II and/or Cambridge ‘A’ level subjects:
Mathematics and either Chemistry or Physics
and
Pass in CAPE Communication Studies and Caribbean Studies and/or
Cambridge General Paper
and
O-Level/CSEC Physics and Chemistry
OR
Diploma Petroleum Engineering
Duration of Study:
3 Years Full Time / 4 1/3 Years Part-Time
14
B.A.Sc. Programme
Credits
Year 1
Common to all
B.A.Sc. Disciplines
36
Year 2
Petroleum Engineering
75%
Research & Design
8%
Humanities & Social Science 17%
Industry outplacement – Term 3
36
Year 3
Petroleum Engineering
70%
Research & Design
15%
Humanities & Social Science 15%
Industry outplacement – Term 3
36
B.A.Sc. Graduate
108 credits
M.Eng. Programme
Entry Requirements
UTT B.A.Sc. Programme
Duration of Study:
1 Year Full Time / 1 1/3Years Part-Time
16
M.Eng. Programme
Petroleum Engineering
Year 4
Research & Design
33%
50%
Humanities & Social Science 17%
M. Eng. Graduate
144 credits
36
credits
B.A.Sc./M.Eng. Petroleum Engineering Pre-Requisites
MATH110B
Engineering
Mathematics 1
ENSD110B
Engineering
Systems
Dynamics
SCMT110B
Scence. of
Material
PROG110B
Programming
1
MATH210B
Engineering
Mathematics 111
MATH110B
Engineering
Mathematics 11
PSWK110B
Problem
Solving
Workshop
ENVM310B
Environmental
Management
PENG210B Into.
Petroleum
Engineering
GEOS210B
Intro. Geoscience
WLOG210B Basic
Well Logging
LWDP110B
Laboratory
Workshop
Year 1 (36)
PEDP320B
Petroleum
Design
Project
PROD410B
Production
Engineering
GEOL320B
Pet. Geology
PETR220B
Petro-physics 1
WTST320B
Well Testing
LBWD210B
Laboratory
Workshop
PJMT220B
Project
Management
QHSE310B
Quality
Assurance
Year 2 (36)
FNMT320B
Financial
Management
GSTS310B
Intro.
Geostatistics
IMOR410B
Improved Oil
Recovery
RESM410B
Reservoir
Simulation 1
PERP420B
PGE Project
NGAS320B
Natural Gas
Engineering
FFPM220B
Fluid Flow in
Porous Media
PDWK110B
Professional
Development
Workshop
LIFE110B
Life Sciences
PROD310B
Production
Engineering
SDRK220B
Sedimentary
Rocks
PBMS220B
Phase Behaviour
VEGR110B
Visualization
ENGS110B
Eng. Seminars
DRLG310B
Drilling
Engineering
DRLG410B
Drilling
Engineering 11
RESV310B
Reservoir
Engineering
ELEC110B
Introduction
to Electrical
Systems
THRM110B
Thermodynamics
1
COMM110B
Communication
Skills
MATH220B
Engineering
Mathematics IV
BPRE210B
Business
Practices
Year 3 (36)
RMAL410B
Research
Methods
PERA420B
Petroleum
Economics
CTLN410B
Contract Law
&
Negotiation
18
Year 4 (36)
MSc Petroleum Engineering
Student Qualifications
BSc Graduates
Engineering Disciplines
Geoscience Disciplines
Physics and Mathematics
Chemistry
MSc Degree in Petroleum
Engineering Course Outline
1st Term – 22 Credits
Engineering
Fundamentals of
Petroleum
Geoscience
(2 Credits)
(4 Credits)
Basic Well
Logging for
Masters
Drilling Practices
Industry Overview for
Petroleum
(2 Credits)
(2 Credits)
Drilling, Completions
and Workovers
(2 Credits)
Shaly Sand
Petrophysics
(3 Credits)
Production
Operations for
Petroleum
Engineering
Basic
Reservoir
Engineering
Introduction to
Natural Gas
Engineering
(2 Credits)
(3 Credits)
(2 Credits)
2nd Term – 27 Credits
Introduction to
Research for Petroleum
Masters
Advanced Well
Logging
Applied Pressure
Transient Analysis
(3 Credits)
(5 Credits)
(2 Credits)
Gas Reservoir
Management
Thermal Heavy
Oil Recovery
(2 Credits)
(5 Credits)
Natural Gas
Engineering for
Masters
Reservoir
Characterization
Applied
Reservoir
Simulation
Petroleum Risk
and Decision
Analysis
(2 Credits)
(2 Credits)
(3 Credits)
(3 Credits)
3rd Term –16 Credits
Project Thesis Overview
Field Development Study
Reservoir Evaluation Study
Well Performance Study
Petroleum Related Study
Project Thesis Review
Year
Corporate Support
EOG Repsol bpTT BGTT Petrotrin UTT
2011 2
2
2
2012 3
2
6
1
2013 3
2
2
1
3
Master of Science (M.Sc.)
Reservoir Engineering
Entry Requirements:
•
Bachelor’s degree in Petroleum Engineering from an approved
university or equivalent;
•
Other applicants who do not have the above necessary
prerequisites and/or the equivalent of the above training will be
required to take courses as deemed necessary by the Programme
Professor, from those offered in UTT’s B.A.Sc. or M.Eng Programme
prior to entry
•
Mature student entry: Applicants with significant industry
experience and practice will be considered as determined by the
Programme Professor.
Duration of Study: – 1 Year Full-time
Master of Science (M.Sc.)
Reservoir Engineering
Programme Overview:
• Offered to students who possess a Bachelors Degree in
Petroleum Engineering;
• Provides hands-on training in the use of software
applications for Reservoir Simulation, Well Test Analysis
and Fluid Flow from Reservoir to Surface
• Prepares graduates for a specialized career in reservoir
engineering.
M.Sc. Reservoir Engineering
Advanced Engineering Mathematics
Term 1
Advanced Petroleum Geoscience
Credits
16
Modern Petroleum Management
Reservoir Characterization
Advanced Reservoir Engineering
Term 2
Advanced Reservoir Simulation
Advanced Well Test Analysis
Improved Oil Recovery
Term 3
Project
16 credits
16
Master of Philosophy (M.Phil)
Entry Requirements:
• Taught Master’s Degree from an approved university
with a B average GPA.
• Bachelor’s degree from an approved university with
a B+ average or Upper Second Class Honours or
equivalent GPA.
• Other qualifications and experience deemed to be
suitable by the Board for Post Graduate Studies,
Research and Development
• A student initially registered for an M.Phil. may be
upgraded to a Ph.D. program
MSc by Employment Type
2005 – 2011(87 graduates)
B.Sc / B.A.Sc/M.Eng by Employment Type
2006 – 2011(40 Graduates)
MSc by Operator Company
MSc by Service Company
weatherford; 1
Tucker; 1
Kenson Group of company; 0
Baker; 5
baroid; 0
Tuscany Drilling; 0
MSc Company by
Company
Schlumberger; 5
Schlumberger
Baker
Kenson Group of company
Tucker
weatherford
baroid
Tuscany Drilling
B.Sc/B.A.Sc /M.Eng by Operator Company
B.Sc/B.A.Sc /M.Eng by Service Company
BSc, MENg, BASc by Company
Schlumberger; 0
Tuscany Drilling; 1
Baker; 3
baroid; 2
Schlumberger
Baker
Kenson Group of
company
Tucker
weatherford
baroid
Tuscany Drilling
Tucker; 0
weatherford; 0
Kenson Group of company; 1
MSc by Job Type
BSc/BASc/MEng by Job Type
Petroleum Engineering
As A Career
37
Role of Petroleum Engineer
• Economic & environmentally safe
production of petroleum resources
• Maximum possible recovery of petroleum
from a reservoir
38
Petroleum Geologist
• Petroleum geologists
look at the structural and
sedimentary aspects of
the stratum / strata to
identify possible oil
traps. Petroleum
geologists make the
decision on where
drilling occurs.
39
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil and
gas via proper well placement,
production levels, and
enhanced oil recovery
techniques
• Develop, control and operate
petroleum reservoirs for
maximum recovery of oil & gas
40
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil
and gas via proper well
placement, production
levels, and enhanced oil
recovery techniques
• Develop, control and operate
petroleum reservoirs for
maximum recovery of oil &
gas
41
Drilling Engineers
• Drilling engineers manage the
technical aspects of drilling both
production and injection wells.
• Select equipment & material for a
drilling rig
• Prepare cost estimates for drilling
wells
• Supervise drilling operations
42
MWD/LWD & Logging Engineer
• Measure and
record well
variables, for
reservoir
characterization.
43
Cementing Engineer
• Responsible for specialized
cementing operations
• Cementing is performed by
circulating a cement slurry
through the inside of the
casing and out into the
annulus through the casing
shoe at the bottom of the
casing string.
44
Drilling Fluids Engineer
•
Mud engineer (correctly called a
Drilling Fluids Engineer, but
sometimes referred to as the "Mud
Man", though women also do this
job today) works on an oil well
drilling rig, and is responsible for
the drilling fluid, also known as
drilling mud which lubricates the
drill bit and clears cuttings from the
borehole.
45
Completion & Workover Engineers
• Design & supervise
the installation of
equipment needed
to transport oil &
gas from the
reservoir to the
surface.
46
Production Engineers
• Production engineers
manage the interface
between the reservoir and
the well
– including perforations, sand
control, artificial lift,
downhole flow control, and
downhole monitoring
equipment
• Responsible for optimizing
gas & oil rates for the well
47
Energy in Trinidad and Tobago
Agenda
•
•
•
•
•
•
•
•
Government revenue and expenditure
Trends in oil and gas price
Main contributors to GDP
T&T as an oil producer (global context)
Reason for slump in oil prices
Overview of Natural Gas sector in T&T
Recent developments
Future of T&T
T&T Energy, Non-Energy and Total GDP
Energy GDP (TT$ Billions, 2000 Prices)
Non Energy GDP (TT$ Billions, 2000 Prices)
GDP (TT$ Billions, 2000 Prices)
100
90
80
70
60
50
40
30
20
10
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
General oil price trend – 1 year
Source: EIA
General oil price trend – 10 years
Europe Brent Spot Price FOB (Dollars per Barrel)
160
140
120
100
80
60
40
20
0
Source: EIA
General oil price trend - 50 years+
http://www.macrotrends.net/1369/crude-oil-price-history-chart
Though the Energy Sector Remains
the Main Contributor to GDP
Sectoral Composition of GDP At Current Market Prices (%),
p
Sector
Agriculture
1966
6.7
1972
7.1
1981
2.6
1989
2.5
1994
2.2
2002
1.4
2008
0.4
2012
0.6
Petroleum
26.5
20.8
35.7
27.2
29.9
26.2
50.8
43.7
Manufacturing
7.0
10.7
5.0
9.6
7.8
8.0
4.0
6.0
Electricity and Water
1.8
1.9
0.2
1.4
1.3
1.4
0.9
1.3
Construction
4.3
7.7
14.6
8.9
7.6
7.3
8.3
5.0
Transport, Storage and
Communications
Distribution
14.0
12.9
9.7
9.3
8.3
10.1
4.0
5.4
18.2
15.4
11.6
17.4
13.7
16.5
12.1
13.8
Finance, Insurance and Real
Estate
Government
7.4
7.0
11.0
11.3
12.4
15.8
8.9
11.0
8.4
11.3
8.8
11.9
2.1
1.6
7.1
8.7
Other services
7.3
7.1
5.1
7.0
13.6
11.4
3.1
4.3
Source: CSO
54
Global production of oil
2012
2013
2014
(million barrels per day)
Non-OPEC Production
52.76
54.13
56.00
OPEC Production
37.00
36.03
35.96
Total World Production
89.76
90.16
91.96
T&T Production
0.08
0.08
0.08
Source: EIA and TTCB
T&T Oil Production
81200 BPD
SPE,2014
Oil Production
• Mature Fields
• Aging Infrastructure
• 16% derived from Gas
Reasons for global slump in oil prices
A number of forces in the international petroleum
markets have set off this downward trend, namely:
• The application of new technology which has
increased Shale oil and gas production in North
America;
• the economic slowdown which has reduced oil
demand by some of the world’s largest oil
consumers, including China, Japan, and Europe,
• geopolitical objectives, and
• the surplus of oil available in the market with
continuing production by oil producing
countries.
Reasons for global slump in oil prices
Imports of Crude Oil and
Petroleum Products (Thousand
Barrels per Day)
U.S. Field Production of Crude Oil
(Thousand Barrels per Day)
10,000
9,000
16000
8,000
14000
12000
7,000
10000
6,000
8000
5,000
6000
4,000
4000
3,000
2000
2,000
0
1,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Average price to produce oil from
various sources
Cost of producing one additional barrel of oil
Regions
Dollars per barrel ($/bbl)
Arctic
115 to 122
Brazil Ethanol
63 to 69
Central and South America
29 to 35
Deepwater Offshore
54 to 60
EU Biodiesel
106 to 113
EU Ethanol
98 to 105
Middle East Onshore
10 to 17
North Sea
46 to 53
Oil Sands
89 to 96
Former Soviet Union Onshore
18 to 25
Russia Onshore
15 to 21
US Ethanol
80 to 87
US Shale Oil
70 to 77
WAF Offshore
38 to 44
Source: Reuters
Breakeven point for select North
American Oil Plays
IHS North America Supply Analytics
Natural Gas
Natural Gas Price
US$/MMBTU
Natural Gas Price: Henry Hub (US$/MMBTU)
10
9
8
7
6
5
4
3
2
1
0
Natural Gas Price: Henry Hub (US$/MMBTU)
Natural Gas Utilization
3854 MMSCFD
BP Statistical Review
T&T LNG Exports to Various Markets
70%
60%
North America
50%
S. & Cent. America
40%
Europe & Eurasia
Asia Pacific
30%
20%
10%
0%
2009
2010
2011
2012
BP Statistical Review
2013
Natural Gas Market
• Challenges from US Shale Gas
• Consuming 1.4 to 1.5 TCF per year
• Savonette Discovery (1 TCF)
Recent Developments in T&T
Oil and gas reserves
• Proven crude oil reserves - 728 million barrels -24.93 years
• Proven natural gas reserves - 12.3 BCF -8.2 years
Investments
• 2014 - US $3.3 billion
2015 – US $3.2 billion
2016 – US $ 3.0 billion
• Juniper US $2.1 billion
Platform to be built at Labidco
Production start up 2017
• Starfish
Production start up 2014
Alleyne, 2014
Drilling Activity
• 2010 – 1132 Rig days
• 2013 – 2485 Rig days
• Active drilling
programme critical for
sustaining production
Alleyne, 2014
Exploration Success
• Recent Successes
East Galeota Field - 27 MMBO
Trinmar Cluster 6 - 48 MMBO
Savonette – 4
- 1 TCF
Trinity TGAL-1
- 26 MMBO
Repsol TSP - 40 MMBO
• Exploration Success in mature fields is
encouraging
• Continuous Spending is required
Alleyne, 2014
Deep Water Activity
Alleyne, 2014
Downstream Activity
• US $850 million Methanol to Di-Methyl Ether
plant
• Technical concept is at advanced stage
• Plant will produce methanol from natural gas
• Methanol will be taken to di-methyl ether to
replace propane and diesel
Alleyne, 2014
Support Services
Galeota Energy Port
Providing logistical
support for:
T&T East Coast
Suriname
Guyana
Alleyne, 2014
Transportation Fuel
• Meeting the challenge of the fuel subsidy
through:
Conversion from liquid fuel to CNG
35 Fueling stations in T&T by 2016
Use of hybrid vehicles
Alleyne, 2014
Energy Policy
What's constant in Energy?
• These taxes would apply to companies
involved mainly in the Production and Refining
Business of Petroleum and Petroleum
products. There have been no changes made
to the following:
– Petroleum Profits Tax rate of 50% on profits
from Land and Shallow Water Blocks.
– Unemployment Levy rate of 5%.
– Petroleum Profits Tax rate of 35% on profits
from Deep Water Blocks.
77
What's new under taxes?
From January 1, 2014:
• Under the Supplemental Petroleum Tax regime, an
Investment Tax credit took effect from January 1, 2011,
which allowed companies to claim 20% of expenditure
on development activity for mature fields and
enhanced oil recovery projects as a credit against their
Supplemental Petroleum Tax liability.
• This credit was only available for use in the financial
year within which the expense was incurred; however,
any unused credits would now be allowed to be carried
forward for one year.
78
What's new for Exploration?
• The existing initial and annual allowances would
be replaced by a new allowance of 100% of
exploration costs to be written off in the year the
expenditure is incurred.
• This allowance would be applicable over the
period 2014 to 2017.
• From 2018, the allowance would be amended to
provide for write off of 50% of the exploration
costs in the first year of expenditure, 30% in the
second year and 20% in the third year.
79
What's new for Development?
• The existing initial and annual allowances
would be replaced by a new allowance of 50%
of costs in the first year of expenditure, 30% in
the second year and 20% in the third year.
• This allowance would be applicable to both
plant and machinery and the drilling of wells.
80
What's new for Workovers and
Qualifying Side-tracks?
• An allowance of 100% of the total costs of
work-overs and qualifying side-tracks to be
written off in the year incurred.
81
Future of T&T
With Seven Sectors Targeted for
Diversification
•
•
•
•
Down Stream Energy.
Tourism.
Food Sustainability.
Information Communication Technologies
(ICT).
• Culture and the creative industries.
• Maritime industries.
• Financial Services.
83
The Future?
Knowledge
based
After
knowledge
based?
Industrial
Agricultural
84
Conclusion
•
•
•
•
Energy Sector drives the economy
Diversification efforts needs to continue
T&T to become knowledge base hub
Paradigm shift needed to extract full value
from our hydrocarbon resources
– R&D into new and unconventional methods
– Hub for generating competent professionals
85
Closing Remarks
Trinidad and Tobago
Dr. David Alexander
Monday 2nd February, 2015
History of Trinidad & Tobago’s Energy
Sector
• 1866 - First successful onshore oil
well
• 1904 - Mines department formed
, now MOEEI
• 1908 - Commercial onshore oil
production
• 1910 - First export of oil from
Brighton
• 1968 - Commercial oil discovered
off Mayaro
• 1972 – National Petroleum (NP)
formed
2
History of Trinidad & Tobago’s
Energy Sector
• 1975 - National Gas Company
(NGC)
• 1978 - Highest oil production
230,000 bopd
• 1980’s - Natural Gas based
Petrochemical Plants established
at Pt Lisas
• 1990’s - Significant gas discovered
east coast marine area
• 1999 - First cargo LNG exported
from Pt. Fortin
3
Importance of the Petroleum Sector
• Trinidad and Tobago’s
Population - 1. 3 million
• Petroleum Jobs - <5% of
direct employment
• Energy sector provides
approximately 75% of
foreign currency
4
Trinidad & Tobago’s Production Profile
T&T Oil & Gas Production Profile:- 1970 to 2008
4500
250
200
3500
3000
150
2500
2000
100
1500
ALNG
1000
50
500
0
1970
0
1975
1980
1985
1990
1995
2000
2005
Year
Gas Rate (mmscfd)
5
Oil Rate (mbopd)
Gas Rate (mmscfd)
4000
Petroleum Programmes at UTT
Petroleum Engineering
What is petroleum engineering?
• Petroleum engineering is a field of engineering
concerned with the activities related to the
production of hydrocarbons, which can be either
crude oil or natural gas.
7
Vision
• Vision of the UTT is to be an entrepreneurial university
that:
– produces graduates with broad integrated skills
– maximises the benefit of new and emerging
technologies; and
– undertakes R&D activities aimed to keep Trinidad
and Tobago in the vanguard of niche technologies of
key importance to the nation
Mission
• To be an entrepreneurial university designed
– discover and develop entrepreneurs
– commercialise research and development
– spawn companies for wealth generation and sustainable
job creation
towards the equitable enhancement of the quality of
life of all individuals, families and communities of
the Republic of Trinidad and Tobago and the
Caribbean”
The UTT Brand
• World class standards – Education with a global
vision
• Industry-ready graduates
• Seamless articulation
• Entrepreneurship inside
• Partnering with industry
Accreditation
Energy Institute of the UK
B.Sc. Petroleum Engineering 2004 - 2007
M.Sc. Petroleum Engineering 2007 - 2015
M.Sc. Petroleum Technology 2006 – 2007
B.A.Sc. Petroleum Engineering 2011- 2015
M.Eng. Petroleum Engineering 2010 – 2015
M.Sc. Reservoir Engineering 2011- 2015
11
Doctor of Philosophy
(Ph.D.)
Programme
Levels
Master of Philosophy
(M.Phil.)
Master of Science (M.Sc.)
Master of Engineering (M.Eng.)
Bachelor of Applied Science
(B.A.Sc.)
National Engineering Technician’s Diploma
(N.E.T.D.)
National Engineering Technician’s
Diploma (NETD)
Entry Requirements:
• Passes in at least 5 subjects at CXC General
Proficiency (Grades I, II or III) inclusive of
Mathematics, English Language, Chemistry and
Physics
Duration of Study:
2-Years Full Time / 4-Years Part-Time
B.A.Sc. Programme
Entry Requirements
Pass in CAPE I and II and/or Cambridge ‘A’ level subjects:
Mathematics and either Chemistry or Physics
and
Pass in CAPE Communication Studies and Caribbean Studies and/or
Cambridge General Paper
and
O-Level/CSEC Physics and Chemistry
OR
Diploma Petroleum Engineering
Duration of Study:
3 Years Full Time / 4 1/3 Years Part-Time
14
B.A.Sc. Programme
Credits
Year 1
Common to all
B.A.Sc. Disciplines
36
Year 2
Petroleum Engineering
75%
Research & Design
8%
Humanities & Social Science 17%
Industry outplacement – Term 3
36
Year 3
Petroleum Engineering
70%
Research & Design
15%
Humanities & Social Science 15%
Industry outplacement – Term 3
36
B.A.Sc. Graduate
108 credits
M.Eng. Programme
Entry Requirements
UTT B.A.Sc. Programme
Duration of Study:
1 Year Full Time / 1 1/3Years Part-Time
16
M.Eng. Programme
Petroleum Engineering
Year 4
Research & Design
33%
50%
Humanities & Social Science 17%
M. Eng. Graduate
144 credits
36
credits
B.A.Sc./M.Eng. Petroleum Engineering Pre-Requisites
MATH110B
Engineering
Mathematics 1
ENSD110B
Engineering
Systems
Dynamics
SCMT110B
Scence. of
Material
PROG110B
Programming
1
MATH210B
Engineering
Mathematics 111
MATH110B
Engineering
Mathematics 11
PSWK110B
Problem
Solving
Workshop
ENVM310B
Environmental
Management
PENG210B Into.
Petroleum
Engineering
GEOS210B
Intro. Geoscience
WLOG210B Basic
Well Logging
LWDP110B
Laboratory
Workshop
Year 1 (36)
PEDP320B
Petroleum
Design
Project
PROD410B
Production
Engineering
GEOL320B
Pet. Geology
PETR220B
Petro-physics 1
WTST320B
Well Testing
LBWD210B
Laboratory
Workshop
PJMT220B
Project
Management
QHSE310B
Quality
Assurance
Year 2 (36)
FNMT320B
Financial
Management
GSTS310B
Intro.
Geostatistics
IMOR410B
Improved Oil
Recovery
RESM410B
Reservoir
Simulation 1
PERP420B
PGE Project
NGAS320B
Natural Gas
Engineering
FFPM220B
Fluid Flow in
Porous Media
PDWK110B
Professional
Development
Workshop
LIFE110B
Life Sciences
PROD310B
Production
Engineering
SDRK220B
Sedimentary
Rocks
PBMS220B
Phase Behaviour
VEGR110B
Visualization
ENGS110B
Eng. Seminars
DRLG310B
Drilling
Engineering
DRLG410B
Drilling
Engineering 11
RESV310B
Reservoir
Engineering
ELEC110B
Introduction
to Electrical
Systems
THRM110B
Thermodynamics
1
COMM110B
Communication
Skills
MATH220B
Engineering
Mathematics IV
BPRE210B
Business
Practices
Year 3 (36)
RMAL410B
Research
Methods
PERA420B
Petroleum
Economics
CTLN410B
Contract Law
&
Negotiation
18
Year 4 (36)
MSc Petroleum Engineering
Student Qualifications
BSc Graduates
Engineering Disciplines
Geoscience Disciplines
Physics and Mathematics
Chemistry
MSc Degree in Petroleum
Engineering Course Outline
1st Term – 22 Credits
Engineering
Fundamentals of
Petroleum
Geoscience
(2 Credits)
(4 Credits)
Basic Well
Logging for
Masters
Drilling Practices
Industry Overview for
Petroleum
(2 Credits)
(2 Credits)
Drilling, Completions
and Workovers
(2 Credits)
Shaly Sand
Petrophysics
(3 Credits)
Production
Operations for
Petroleum
Engineering
Basic
Reservoir
Engineering
Introduction to
Natural Gas
Engineering
(2 Credits)
(3 Credits)
(2 Credits)
2nd Term – 27 Credits
Introduction to
Research for Petroleum
Masters
Advanced Well
Logging
Applied Pressure
Transient Analysis
(3 Credits)
(5 Credits)
(2 Credits)
Gas Reservoir
Management
Thermal Heavy
Oil Recovery
(2 Credits)
(5 Credits)
Natural Gas
Engineering for
Masters
Reservoir
Characterization
Applied
Reservoir
Simulation
Petroleum Risk
and Decision
Analysis
(2 Credits)
(2 Credits)
(3 Credits)
(3 Credits)
3rd Term –16 Credits
Project Thesis Overview
Field Development Study
Reservoir Evaluation Study
Well Performance Study
Petroleum Related Study
Project Thesis Review
Year
Corporate Support
EOG Repsol bpTT BGTT Petrotrin UTT
2011 2
2
2
2012 3
2
6
1
2013 3
2
2
1
3
Master of Science (M.Sc.)
Reservoir Engineering
Entry Requirements:
•
Bachelor’s degree in Petroleum Engineering from an approved
university or equivalent;
•
Other applicants who do not have the above necessary
prerequisites and/or the equivalent of the above training will be
required to take courses as deemed necessary by the Programme
Professor, from those offered in UTT’s B.A.Sc. or M.Eng Programme
prior to entry
•
Mature student entry: Applicants with significant industry
experience and practice will be considered as determined by the
Programme Professor.
Duration of Study: – 1 Year Full-time
Master of Science (M.Sc.)
Reservoir Engineering
Programme Overview:
• Offered to students who possess a Bachelors Degree in
Petroleum Engineering;
• Provides hands-on training in the use of software
applications for Reservoir Simulation, Well Test Analysis
and Fluid Flow from Reservoir to Surface
• Prepares graduates for a specialized career in reservoir
engineering.
M.Sc. Reservoir Engineering
Advanced Engineering Mathematics
Term 1
Advanced Petroleum Geoscience
Credits
16
Modern Petroleum Management
Reservoir Characterization
Advanced Reservoir Engineering
Term 2
Advanced Reservoir Simulation
Advanced Well Test Analysis
Improved Oil Recovery
Term 3
Project
16 credits
16
Master of Philosophy (M.Phil)
Entry Requirements:
• Taught Master’s Degree from an approved university
with a B average GPA.
• Bachelor’s degree from an approved university with
a B+ average or Upper Second Class Honours or
equivalent GPA.
• Other qualifications and experience deemed to be
suitable by the Board for Post Graduate Studies,
Research and Development
• A student initially registered for an M.Phil. may be
upgraded to a Ph.D. program
MSc by Employment Type
2005 – 2011(87 graduates)
B.Sc / B.A.Sc/M.Eng by Employment Type
2006 – 2011(40 Graduates)
MSc by Operator Company
MSc by Service Company
weatherford; 1
Tucker; 1
Kenson Group of company; 0
Baker; 5
baroid; 0
Tuscany Drilling; 0
MSc Company by
Company
Schlumberger; 5
Schlumberger
Baker
Kenson Group of company
Tucker
weatherford
baroid
Tuscany Drilling
B.Sc/B.A.Sc /M.Eng by Operator Company
B.Sc/B.A.Sc /M.Eng by Service Company
BSc, MENg, BASc by Company
Schlumberger; 0
Tuscany Drilling; 1
Baker; 3
baroid; 2
Schlumberger
Baker
Kenson Group of
company
Tucker
weatherford
baroid
Tuscany Drilling
Tucker; 0
weatherford; 0
Kenson Group of company; 1
MSc by Job Type
BSc/BASc/MEng by Job Type
Petroleum Engineering
As A Career
37
Role of Petroleum Engineer
• Economic & environmentally safe
production of petroleum resources
• Maximum possible recovery of petroleum
from a reservoir
38
Petroleum Geologist
• Petroleum geologists
look at the structural and
sedimentary aspects of
the stratum / strata to
identify possible oil
traps. Petroleum
geologists make the
decision on where
drilling occurs.
39
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil and
gas via proper well placement,
production levels, and
enhanced oil recovery
techniques
• Develop, control and operate
petroleum reservoirs for
maximum recovery of oil & gas
40
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil
and gas via proper well
placement, production
levels, and enhanced oil
recovery techniques
• Develop, control and operate
petroleum reservoirs for
maximum recovery of oil &
gas
41
Drilling Engineers
• Drilling engineers manage the
technical aspects of drilling both
production and injection wells.
• Select equipment & material for a
drilling rig
• Prepare cost estimates for drilling
wells
• Supervise drilling operations
42
MWD/LWD & Logging Engineer
• Measure and
record well
variables, for
reservoir
characterization.
43
Cementing Engineer
• Responsible for specialized
cementing operations
• Cementing is performed by
circulating a cement slurry
through the inside of the
casing and out into the
annulus through the casing
shoe at the bottom of the
casing string.
44
Drilling Fluids Engineer
•
Mud engineer (correctly called a
Drilling Fluids Engineer, but
sometimes referred to as the "Mud
Man", though women also do this
job today) works on an oil well
drilling rig, and is responsible for
the drilling fluid, also known as
drilling mud which lubricates the
drill bit and clears cuttings from the
borehole.
45
Completion & Workover Engineers
• Design & supervise
the installation of
equipment needed
to transport oil &
gas from the
reservoir to the
surface.
46
Production Engineers
• Production engineers
manage the interface
between the reservoir and
the well
– including perforations, sand
control, artificial lift,
downhole flow control, and
downhole monitoring
equipment
• Responsible for optimizing
gas & oil rates for the well
47
Energy in Trinidad and Tobago
Agenda
•
•
•
•
•
•
•
•
Government revenue and expenditure
Trends in oil and gas price
Main contributors to GDP
T&T as an oil producer (global context)
Reason for slump in oil prices
Overview of Natural Gas sector in T&T
Recent developments
Future of T&T
T&T Energy, Non-Energy and Total GDP
Energy GDP (TT$ Billions, 2000 Prices)
Non Energy GDP (TT$ Billions, 2000 Prices)
GDP (TT$ Billions, 2000 Prices)
100
90
80
70
60
50
40
30
20
10
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
General oil price trend – 1 year
Source: EIA
General oil price trend – 10 years
Europe Brent Spot Price FOB (Dollars per Barrel)
160
140
120
100
80
60
40
20
0
Source: EIA
General oil price trend - 50 years+
http://www.macrotrends.net/1369/crude-oil-price-history-chart
Though the Energy Sector Remains
the Main Contributor to GDP
Sectoral Composition of GDP At Current Market Prices (%),
p
Sector
Agriculture
1966
6.7
1972
7.1
1981
2.6
1989
2.5
1994
2.2
2002
1.4
2008
0.4
2012
0.6
Petroleum
26.5
20.8
35.7
27.2
29.9
26.2
50.8
43.7
Manufacturing
7.0
10.7
5.0
9.6
7.8
8.0
4.0
6.0
Electricity and Water
1.8
1.9
0.2
1.4
1.3
1.4
0.9
1.3
Construction
4.3
7.7
14.6
8.9
7.6
7.3
8.3
5.0
Transport, Storage and
Communications
Distribution
14.0
12.9
9.7
9.3
8.3
10.1
4.0
5.4
18.2
15.4
11.6
17.4
13.7
16.5
12.1
13.8
Finance, Insurance and Real
Estate
Government
7.4
7.0
11.0
11.3
12.4
15.8
8.9
11.0
8.4
11.3
8.8
11.9
2.1
1.6
7.1
8.7
Other services
7.3
7.1
5.1
7.0
13.6
11.4
3.1
4.3
Source: CSO
54
Global production of oil
2012
2013
2014
(million barrels per day)
Non-OPEC Production
52.76
54.13
56.00
OPEC Production
37.00
36.03
35.96
Total World Production
89.76
90.16
91.96
T&T Production
0.08
0.08
0.08
Source: EIA and TTCB
T&T Oil Production
81200 BPD
SPE,2014
Oil Production
• Mature Fields
• Aging Infrastructure
• 16% derived from Gas
Reasons for global slump in oil prices
A number of forces in the international petroleum
markets have set off this downward trend, namely:
• The application of new technology which has
increased Shale oil and gas production in North
America;
• the economic slowdown which has reduced oil
demand by some of the world’s largest oil
consumers, including China, Japan, and Europe,
• geopolitical objectives, and
• the surplus of oil available in the market with
continuing production by oil producing
countries.
Reasons for global slump in oil prices
Imports of Crude Oil and
Petroleum Products (Thousand
Barrels per Day)
U.S. Field Production of Crude Oil
(Thousand Barrels per Day)
10,000
9,000
16000
8,000
14000
12000
7,000
10000
6,000
8000
5,000
6000
4,000
4000
3,000
2000
2,000
0
1,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Average price to produce oil from
various sources
Cost of producing one additional barrel of oil
Regions
Dollars per barrel ($/bbl)
Arctic
115 to 122
Brazil Ethanol
63 to 69
Central and South America
29 to 35
Deepwater Offshore
54 to 60
EU Biodiesel
106 to 113
EU Ethanol
98 to 105
Middle East Onshore
10 to 17
North Sea
46 to 53
Oil Sands
89 to 96
Former Soviet Union Onshore
18 to 25
Russia Onshore
15 to 21
US Ethanol
80 to 87
US Shale Oil
70 to 77
WAF Offshore
38 to 44
Source: Reuters
Breakeven point for select North
American Oil Plays
IHS North America Supply Analytics
Natural Gas
Natural Gas Price
US$/MMBTU
Natural Gas Price: Henry Hub (US$/MMBTU)
10
9
8
7
6
5
4
3
2
1
0
Natural Gas Price: Henry Hub (US$/MMBTU)
Natural Gas Utilization
3854 MMSCFD
BP Statistical Review
T&T LNG Exports to Various Markets
70%
60%
North America
50%
S. & Cent. America
40%
Europe & Eurasia
Asia Pacific
30%
20%
10%
0%
2009
2010
2011
2012
BP Statistical Review
2013
Natural Gas Market
• Challenges from US Shale Gas
• Consuming 1.4 to 1.5 TCF per year
• Savonette Discovery (1 TCF)
Recent Developments in T&T
Oil and gas reserves
• Proven crude oil reserves - 728 million barrels -24.93 years
• Proven natural gas reserves - 12.3 BCF -8.2 years
Investments
• 2014 - US $3.3 billion
2015 – US $3.2 billion
2016 – US $ 3.0 billion
• Juniper US $2.1 billion
Platform to be built at Labidco
Production start up 2017
• Starfish
Production start up 2014
Alleyne, 2014
Drilling Activity
• 2010 – 1132 Rig days
• 2013 – 2485 Rig days
• Active drilling
programme critical for
sustaining production
Alleyne, 2014
Exploration Success
• Recent Successes
East Galeota Field - 27 MMBO
Trinmar Cluster 6 - 48 MMBO
Savonette – 4
- 1 TCF
Trinity TGAL-1
- 26 MMBO
Repsol TSP - 40 MMBO
• Exploration Success in mature fields is
encouraging
• Continuous Spending is required
Alleyne, 2014
Deep Water Activity
Alleyne, 2014
Downstream Activity
• US $850 million Methanol to Di-Methyl Ether
plant
• Technical concept is at advanced stage
• Plant will produce methanol from natural gas
• Methanol will be taken to di-methyl ether to
replace propane and diesel
Alleyne, 2014
Support Services
Galeota Energy Port
Providing logistical
support for:
T&T East Coast
Suriname
Guyana
Alleyne, 2014
Transportation Fuel
• Meeting the challenge of the fuel subsidy
through:
Conversion from liquid fuel to CNG
35 Fueling stations in T&T by 2016
Use of hybrid vehicles
Alleyne, 2014
Energy Policy
What's constant in Energy?
• These taxes would apply to companies
involved mainly in the Production and Refining
Business of Petroleum and Petroleum
products. There have been no changes made
to the following:
– Petroleum Profits Tax rate of 50% on profits
from Land and Shallow Water Blocks.
– Unemployment Levy rate of 5%.
– Petroleum Profits Tax rate of 35% on profits
from Deep Water Blocks.
77
What's new under taxes?
From January 1, 2014:
• Under the Supplemental Petroleum Tax regime, an
Investment Tax credit took effect from January 1, 2011,
which allowed companies to claim 20% of expenditure
on development activity for mature fields and
enhanced oil recovery projects as a credit against their
Supplemental Petroleum Tax liability.
• This credit was only available for use in the financial
year within which the expense was incurred; however,
any unused credits would now be allowed to be carried
forward for one year.
78
What's new for Exploration?
• The existing initial and annual allowances would
be replaced by a new allowance of 100% of
exploration costs to be written off in the year the
expenditure is incurred.
• This allowance would be applicable over the
period 2014 to 2017.
• From 2018, the allowance would be amended to
provide for write off of 50% of the exploration
costs in the first year of expenditure, 30% in the
second year and 20% in the third year.
79
What's new for Development?
• The existing initial and annual allowances
would be replaced by a new allowance of 50%
of costs in the first year of expenditure, 30% in
the second year and 20% in the third year.
• This allowance would be applicable to both
plant and machinery and the drilling of wells.
80
What's new for Workovers and
Qualifying Side-tracks?
• An allowance of 100% of the total costs of
work-overs and qualifying side-tracks to be
written off in the year incurred.
81
Future of T&T
With Seven Sectors Targeted for
Diversification
•
•
•
•
Down Stream Energy.
Tourism.
Food Sustainability.
Information Communication Technologies
(ICT).
• Culture and the creative industries.
• Maritime industries.
• Financial Services.
83
The Future?
Knowledge
based
After
knowledge
based?
Industrial
Agricultural
84
Conclusion
•
•
•
•
Energy Sector drives the economy
Diversification efforts needs to continue
T&T to become knowledge base hub
Paradigm shift needed to extract full value
from our hydrocarbon resources
– R&D into new and unconventional methods
– Hub for generating competent professionals
85
Closing Remarks
