Oil And Gas Formation

Generally the scientist believe the crude oil and natural gas are formed by live things. Tiny sea plants and animals died were buried on ocean floor. Over time, they were covered by layers of sediment and rock.
Over millions of  years,the remains were buried deeper and deeper.The enormous heat and pressure turn them into oil and gas. They migrated from the source to the reservoir rock, and trapping by impermeable rock.

Question 1:  Is this live things transformation process continuous? Today a fish died in sea, would it become oil over millions of year later?

Question 2: Why from live things? Live things contains protein (CO-NH), Is amount of hydrocarbon to O and N ratio in reservoir reflect protein ratio?

Question 3: Formation oil and gas need the right temperature and pressure. However found some oil in surface only few meter from ground which is no high temperature and pressure condition.

Question 4: The hydrocarbon was found in some of planet, like Saturn, Jupiter, but without biology.

Oil and Gas Processing (History)

Oil has been used for lighting purposes for many thousands of years. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds.

Historically, we know the tales of eternal fires where oil and gas seeps ignited and burned. One example is the site where the famous oracle of Delphi was built around 1,000 B.C. Written sources from 500 B.C. describe how the Chinese used natural gas to boil water. The oil was produced from bamboo-drilled wells in China. The well reach 1000 meters deep.

In western history, it was not until 1859 that "Colonel" Edwin Drake drilled the first successful oil well, with the sole purpose of finding oil. The Drake Well was located in the middle of quiet farm country in northwestern Pennsylvania, and sparked the international search for an industrial use for petroleum.

Photo: Drake Well Museum Collection, Titusville, PA

These wells were shallow by modern standards, often less than 50 meters deep, but they produced large quantities of oil. In this picture of the Tarr Farm, Oil Creek Valley, the Phillips well on the right initially produced 4,000 barrels per day in October, 1861, and the Woodford well on the left came in
at 1,500 barrels per day in July, 1862.

The oil was collected in the wooden tank pictured in the foreground. As you will no doubt notice, there are many different-sized barrels in the background. At this time, barrel size had not been standardized, which made statements like "oil is selling at $5 per barrel" very confusing (today a barrel is 159 liters). But even in those days, overproduction was something to be avoided. When the "Empire well" was completed in September 1861, it produced 3,000 barrels per day, flooding the market, and the price of oil plummeted to 10 cents a barrel. In some ways, we see the same effect today. When new shale gas fields in the US are constrained by the capacity of the existing oil and gas pipeline network, it results in bottlenecks and low prices at the production site.

Soon, oil had replaced most other fuels for motorized transport. The automobile industry developed at the end of the 19th century, and quickly adopted oil as fuel. Gasoline engines were essential for designing successful aircraft. Ships driven by oil could move up to twice as fast as their coal-powered counterparts, a vital military advantage. Gas was burned off or left in the ground.

Despite attempts at gas transportation as far back as 1821, it was not until after World War II that welding techniques, pipe rolling, and metallurgical advances allowed for the construction of reliable long distance pipelines, creating a natural gas industry boom. At the same time, the petrochemical industry with its new plastic materials quickly increased production. Even now, gas production is gaining market share as liquefied natural gas (LNG) provides an economical way of transporting gas from even the remotest sites.

With the appearance of automobiles and more advanced consumers, it was necessary to improve and standardize the marketable products. Refining was necessary to divide the crude in fractions that could be blended to precise specifications. As value shifted from refining to upstream production, it became even more essential for refineries to increase high-value fuel yield from a variety of crudes. From 10-40% gasoline for crude a century ago, a modern refinery can get up to 70% gasoline from the same quality crude through a variety of advanced reforming and cracking processes.

1 barrel (42 gallons) crude oil breakdown to various products in gallon

Chemicals derived from petroleum or natural gas – petrochemicals – are an essential part of the chemical industry today. Petrochemistry is a fairly young industry; it only started to grow in the 1940s, more than 80 years after the drilling of the first commercial oil well.

During World War II, the demand for synthetic materials to replace costly and sometimes less efficient products caused the petrochemical industry to develop into a major player in modern economy and society.

Products Flow Chart of Petroleum Based Feedstocks

Before then, it was a tentative, experimental sector, starting with basic materials:

• Synthetic rubbers in the 1900s
• Bakelite, the first petrochemical-derived plastic, in 1907
• First petrochemical solvents in the 1920s
• Polystyrene in the 1930s

And it then moved to an incredible variety of areas:

• Household goods (kitchen appliances, textiles, furniture)
• Medicine (heart pacemakers, transfusion bags)
• Leisure (running shoes, computers...)
• Highly specialized fields like archaeology and crime detection

With oil prices of $100 a barrel or more, even more difficult-to-access sources have become economically viable. Such sources include tar sands in Venezuela and Canada, shale oil and gas in the US (and developing

elsewhere), coal bed methane and synthetic diesel (syndiesel) from natural gas, and biodiesel and bioethanol from biological sources have seen a dramatic increase over the last ten years. These sources may eventually

more than triple the potential reserves of hydrocarbon fuels. Beyond that, there are even more exotic sources, such as methane hydrates, that some experts claim can double available resources once more.

With increasing consumption and ever-increasing conventional and unconventional resources, the challenge becomes not one of availability, but of sustainable use of fossil fuels in the face of rising environmental impacts, that range from local pollution to global climate effects.

Reference sources:

1. Oil and gas production handbook: 

   An introduction to oil and gas production,

   transport, refining and petrochemical 

   industry

   . 

   Håvard Devold, 2013
2. 石油的历史

BP Schiehallion FPSO offstation (720p HD)

The largest new build FPSO, BP Schiehallion. 

After operated 14 years, BP have decided replace with new FPSO. 

The Schiehallion to be decommissioning. 

The animation is showing safely offstation the Schiehallion.

Fact sheet:

Oil: 200,000 BPD (2x50% trains)
Water: 200,0o0 BPD
Total Liquid : 270,000 BPD
Gas : 130 MMSCFD
Water Injection : 250,000 BPD
Power: 2 x GE LM-6000 dual fuel, 40 MW
Mooring: Internal Turret
Storage: 900,000 BBLS

The Oil Supply Chain Road Map

The Asia oil supply chain road map from Middle East and Australia to China, Japan.

The sea routes are crossing Hormuz, Malacca, Sonda and Lombok straits and through the South Chinese Sea.

Malaysia and Singapore are located strategy position in term of geographically, they just stay in middle of route. However, this road map is also the important trade route for other commodities since many century ago.

History of Oil and Gas Industry

Standard Oil is big boy of oil and gas industry in 18th century who dominance of oil production, refinement and distribution.
In 1911, Standard Oil was Broken up into seven companies:

1. Standard Oil of New Jersey (Esso), which merged with Mobil to form ExxonMobil.
2. Royal Dutch Shell (Dutch 60% / British 40%)
3. Anglo-Persian Oil Company (APOC) (British). This later became Anglo-Iranian Oil Company (AIOC), then British Petroleum, and then BP Amoco following a merger with Amoco (which in turn was formerly Standard Oil of Indiana). It is now known solely by the initials BP.
4. Standard Oil Co. of New York ("Socony"). This later became Mobil, which merged with Exxon to form ExxonMobil.
5. Standard Oil of California ("Socal"). This became Chevron, then, upon merging with Texaco, ChevronTexaco. It has since dropped the 'Texaco' suffix, returning to Chevron.
6. Gulf Oil. In 1984, most of Gulf became part of Chevron, with smaller parts becoming part of BP and Cumberland Farms, in what was, at that time, the largest merger in world history. A network of stations in the northeastern United States still bears this name.
7. Texaco. Merged with Chevron in 2001. The merged company was known for a time as ChevronTexaco, but in 2005, changed its name back to Chevron. Texaco remains a Chevron brand name.

This seven companies became know as Seven Sisters.
As of 2005, the surviving companies are ExxonMobil, Chevron, Royal Dutch Shell, and BP.
There is now global market in oil and gas involving more companies, Marathon, ConocoPhillips, Hess, Agip, Talisman, and Total.

=== Update ===
Infographic

Source: http://www.visualcapitalist.com/chart-evolution-standard-oil/

=== Update ===
History of Standard Oil

1900, Standard Oil controlled 90% of oil industry in United States. He controlled the oil production, sales, oil price. A big giant company monopoly the market. How it fell. A woman journalist, named Ida Tarbell, she brake the giant by her pen.

Ida Tarbell, her father was an small oil producer whose business had failed due to Rockefeller's business dealings. She muckraked and published in McClure's Magazine. (Full story)