OIL & GAS
(Spring 2004)- I got an ‘A’ in this class!!
I. Organic Theory
a. Process = anaerobic bacteria à organic matter à hydrogen & carbon (Kerogen – ooze) à increased pressure, increased temperature à natural gas + crude oil
– Crude Oil à Forms at 150°
– Natural Gas à Forms at 300°
b. Porosity – void spaces in sand grains where kerogen breaks down into gas &
c. 3 types of Rock:
1. Igneous – volcanic; granite
2. Metamorphic – slate, marble
3. Sedimentary – sandstone, limestone (Needed for oil/gas accumulation)
d. Hydrocarbons – molecules of hydrogen & carbon (may be gas or fluid)
e. Density: lighter hydrocarbons migrate higher.
Gas will be found above oil, oil found above water.
g. Summary: Requirements for formation:
1. Source of hydrocarbons – dead critters
3. porous rock – for hydrocarbons to accumulate
4. temperature & pressure
NOTE: if have these, likelihood that reservoir may contain oil/gas
II. Exploration & Production of Hydrocarbons
a. Exploring subsurface
1. Seismic technology (sound waves to investigate)
a. Use geophones (records soundwaves)
b. Soundwaves travel at different velocities through materials of
different density à travel slower through more dense material;
faster thru less dense material (slower thru water than oil)
c. Geophones used to determine density and shape
2. Location = place where you decide to drill
b. Drilling a Well
1. Fluids move from high to low pressure – so by piercing reservoir, the
oil will rise.
2. Process: drilling rig taken to location à connect drilling bit to series of
connecting pipe à chews thru the strata à circulating “drilling mud” to
keep the drill bit cool & it creates “hydrostatic pressure” to prevent oil
from just shooting upward “blow out”. à run piping called “casing”
down hole to release the oil (pipe is perforated by using a gun which
opens up the pipe allowing oil to escape).
3. Determining what’s down there:
a. take core sample
b. Run an electric log – measures conductivity of rock (resistivity
of rock) – less dense has greater resistivity???
4. Measurement of Oil & Gas
a. Oil à measured in barrels
a. Unless landowner conveys mineral estate away, the ownership in title
has absolute ownership in severalty…oil/gas and coal are considered a
part of the realty (real property)… “He owns all the minerals under his
b. Fugacious – Oil/gas are fugacious…they migrate…therefore, if
adjacent landowner drills well on his own property and oil/gas migrates,
OIP doctrine does not apply.
(i) Migration is only a problem if have a common reservoir.
(ii) Drainage = when extracting, some of the oil/gas comes from
beneath another’s land.
c. OIP doctrine would apply if somebody came onto landowners property
directly and drilled a well.
d. Del Monte v. Last Chance Mining Co. (1898) – Δ followed a vein of
silver and lead-bearing ore it was mining…beyond the western
boundary of its mining claim and under Π’s mining claim.
(i) RULE: OIP = the owner of th