Program MBA in Petroleum and Natural Gas (Sem-3)

Assignment: A

Components of Crude Oil
Answer:

Write short on Classification of crude oil industry
Answer:

Write short on New Exploration Licensing Policy (NELP)
Answer:

Write short on Phases of Migration
Answer:

Write short on Characteristics of Porous Rock
Answer:

Define petroleum. Explain types of Petroleum. What are the major tasks in oil exploration?
Answer:

Explain whole process of Hydrocarbon Generation.
Answer:

Describe the trap and its classifications also discuss about Salt Dome.

Answer:

Assignment B

CASE STUDY
(Attempt all questions. Every question carries 10 marks)

Read the case “Southeast Asia Offshore Oil Drilling Problem” and answer the following questions.
Southeast Asia Offshore Oil Drilling Problem

This case study is part of a series designed to help students and younger engineers develop business problem- solving skills through real engineering scenarios. Each case study will provide practical applications of specific, real- life examples to develop the strategy skills that leading companies use to succeed in the marketplace.
Scenario
Our client, Petro-Oil, is a mid-sized oil and gas exploration and production company with major areas of exploration located in South America, Gulf of Mexico, Western Africa, China, Eastern Europe, and several other countries.

The Board of Petro-Oil has just set an ambitious goal to be completed in the next five years: To be the largest oil and gas producer in Asia by the end of 2017. A quick market research inquiry shows three major competitor companies (Table 1) that are larger than our client. To support their new aspirations, our client just purchased Ceylon-II, a large deep-water oilfield offshore in the South China Sea.

Table 1: Benchmark Results (million barrels of oil equivalent):
 
    Proven Reserves    Annual Production       
Competitor A: PetroChina    15,000    1,500       
Competitor B: Petronas    8,000    800       
Competitor C: Pertamina    7,500    750       
Client: Current Producing Assets    6,000    450       
Client: Ceylon-II    6,000    0     

Petro-Oil’s management team has hired your company to do a diagnostic of the company’s current portfolio, operations, and organization to help them understand what they need to do to achieve this goal.

Key points and assumptions

Production is generally correlated with reserves

Assume the reserves of each of the assets are exactly at the same rate of depletion

Assume that all competitors continue to seek additional reserves in the Pacific region

The current existing production rates in the area are significantly higher than the client’s production rate

Analysis

The current extraction rate of Competitors A, B, and C are much higher than our client and hold, at a minimum, 10% extraction rate. The client’s current production rate needs to increase and the new asset has to meet the current standard of 10% extraction rate.

Further exploration in the area to gain new assets for additional production is key for growth and to increase the extraction rate. Even with these two current assets, the client’s current reserves are still less than the region is the largest producer.

Questions to develop the proper strategy

 

Discuss the problem stated in the in the case-study.
Answer:

2. What are the goals of the board of Petro-Oil?
Answer:

3. Describe the scenario and analysis used in the case-study.
Answer:

4. Explain the various key points and assumptions.
Answer:

5. Elaborate the questions to develop the proper strategy.
Answer:

Assignment C
Question No: 1
In India, the operations of oil companies are in upstream or downstream or both.

TRUE
FALSE
Can't say
None of the above

Question No: 2
Bacterial gas has no direct correlation with -------.

Coal
Wood
Gold
Petroleum

Question No: 3
The basic components of petroleum and natural gases are mixtures of -------, carbon and hydrogen

Carbons
Hydrocarbons
Monocarbon
tricarbon

Question No: 4
There are two distinct types of natural gas based upon their origin: Petroleum gas and Coal gas.

TRUE
FALSE
Can't say
None of the above

Question No: 5
The components of crude oil can be classified into two hydrocarbon series: Methane series and Naphthalene series.

TRUE
FALSE
Can't Say
None of the above

Question No: 6
The trap is a fundamental part of the seal that prevents hydrocarbons from further upward migration. There are two types of traps whose classifications are based on the preferential mechanism of leaking: the hydraulic trap and the membrane trap. The statement given above is wrong and needs some rectification. Choose the rectified statement from the choices given.

A trap is formed when the buoyancy forces driving the upward migration of hydrocarbons through a permeable rock cannot overcome the capillary forces of a sealing medium. There are two types of traps whose classifications are based on the preferential mechanism of leaking: the hydraulic seal and the membrane seal.
The seal is a fundamental part of the trap that prevents hydrocarbons from further upward migration. A capillary seal is formed when the capillary pressure across the pore throats is greater than or equal to the buoyancy pressure of the migrating hydrocarbons. They do not allow fluids to migrate across them until their integrity is disrupted, causing them to leak. There are two types of capillary seal whose classifications are based on the preferential mechanism of leaking: the hydraulic seal and the membrane seal.
A seal is formed when the buoyancy forces driving the upward migration of hydrocarbons through a permeable rock cannot overcome the capillary forces of a sealing medium. There areAll the statements are correctOption 4two types of seal whose classifications are based on the preferential mechanism of leaking: the hydraulic seal and the membrane seal.
All the statements are correct

Question No: 7
The set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions is known as -

Culture
Sub-culture
Attitude
None of the above

Question No: 8
Stocking the product in as many outlets as possible is called -

Extensive distribution
Inclusive distribution
Intensive distribution
None of the above

Question No: 9
The chemical structure of petroleum is 

heterogeneous
homogenous
cylindrical
rectangular

Question No: 10
Demography is -

The study of human population in terms of size, density, location, age, gender, race, occupation and other statistics
The study of the marketing plans
The study of all the activities in the organization
None of the above

Question No: 11
The most common distillation fractions of petroleum are

plastics
fuels
fertilizers
pesticides

Question No: 12
It is estimated by the International Energy Agency that about 13 percent of the world's undiscovered oil resides in the

USA
Arctic 
UK
Russia

Question No: 13
The new product development process starts with –

Screening
Idea generation
Product development
None of the above

Question No: 14
The process of creating and developing product specifications that optimize the function, value and appearance of a product is -

Product design
Market design
Industrial design
None of the above

Question No: 15
Petroleum production engineers' responsibilities include:

inflow and outflow performance between the refinery  and the market
Evaluating inflow and outflow performance between the well and the final consumer
Evaluating marketing  performance between the two countries
Evaluating inflow and outflow performance between the reservoir and the wellbore

Question No: 16
Petroleum is also the raw material for many chemical products such as

cosmetics and shampoos
soaps and shampoos
pharmaceuticals, solvents, fertilizers, pesticides, and plastics
detergents and surf

Question No: 17
The geographic location is important because it affects ___________________to the refinery

drilling cost
purchase
marketing cost
transportation costs 

Question No: 18
Petroleum occurs in the earth in combination of any of these states:

Gas
Liquid
Semi-solid
All of the above

Question No: 19
One of the problems with finding new fossil fuel deposits in developing countries is that --------
It is very expensive to transport the deposit elsewhere
Those countries tend to keep the resource for themselves, not sharing with other countries
International companies move in to harvest the new deposit, and very little money or resource remains in the country
Their governments seldom allow extraction of the deposit without meeting expensive environmental regulations

Question No: 20
A commonly used terminology in oil companies, Exploration & Production (E&P), comprises of search, discovery and production of oil and gas by undertaking

Licensing and agreement from the governments concerned
Geological surveys including aerial photography, satellite images to examine nature of rocks and soil strata and interpretation of such data
Geophysical surveys and Interpretation of data and geological modelling
all of the above

Question No: 21
Read the following statements and tell which of the mentioned option is CORRECT: 1. Digboi is now Headquarter of Assam Oil Division of Indian Oil Corporation Limited. 2. The Digboi oil field produced close to 7,000barrels/day of crude oil at its peak, which was during World War II.

a. True, True
b. True, False
c. False, True

d. False, False

a is correct
b is correct
c is correct
d is correct

Question No: 22
Digboi is known as the ------- of Assam where the first oil well in ------- was drilled

Petroleum City, Asia
Oil City, Asia
Oil City, India
Petroleum City, India

Question No: 23
Oil exploration is the property of rock in terms of gravity magnetism and impedance of acoustic or sound waves within the rock formations. These properties of rocks are grouped as -------.

Geophysical Properties
Geochemical Properties
Biological Properties
Geological Properties

Question No: 24
In oil exploration the property of rock are: 1. Gravity 2.Magnetism 3.Impedance of acoustic 4.Sound waves within the rock formations 
a. 1 and 2 
b. 2 and 3 
c. 1 and 3
d. 1, 2, 3 and 4

a is correct
b is correct
c is correct
d is correct

Question No: 25
Crude oil is soluble in:

Naphtha
Carbon disulfide
Ether
Benzene

Question No: 26
Petroleum comes from the Latin 'petra' and 'oleum'.

'petra' means oil and 'oleum' means rock
'petra' means rock and 'oleum' means oil
'petra' means Oil and 'oleum' means stone
'petra' means coal and 'oleum' means oil

Question No: 27
Petroleum comes from the Latin words ------- and -------.

Petro, Leum
Petra, Leum
Petra, Oleum
Petro, Aleum

Question No: 28
Crude oil was discovered in Digboi, Assam, India in:

Late 17th century
Late 18th century
Late 19th century
Late 20th century

Question No: 29
Geochemistry has emerged lately as a very useful tool in deciphering the hydrocarbon occurrences in certain areas of the basin on a ------- particularly the gaseous type. 
1. Micro scale 
2. Macro scale

a. Only 1
b. Only 2
c. 1 and 2
d. None of these

a is correct
b is correct
c is correct
d is correct

Question No: 30
The major task in oil exploration is to ------- where there are geological structures in which oil might have been trapped.

Locate Sites
Locate under sea
Locate Mountain
Locate land

Question No: 31
Semi and solid forms are called ------- hydrocarbons and bitumens.

Heavy
Light
Gas
Liquid

Question No: 32
The ------- consists of lighter paraffin hydrocarbons.
 a. Crude oil 
b. Natural gas
c. Semi-solid 
d. Solid forms. 

a is correct
b is correct
c is correct
d is correct

Question No: 33
Crude oil refers to: 
a. Gas Petroleum
b. Liquid Petroleum
c. Solid Petroleum

a is correct
b is correct
c is correct
None of the above

Question No: 34
Which liquid-hydrocarbons contain varying amounts of dissolved gases, bitumens, and other impurities. a. Crude oils b. Natural gas c. Semi-solids d. Solid forms

a is correct
b is correct
c is correct
d is correct

Question No: 35
Petroleum contains complex carbon-hydrogen molecular structures called chains that are linked together to form long chains of more complex molecules. ------- is one such hydrocarbon.

a. CH2
b. CH3
c. CH4
d. CH5

a is correct
b is correct
c is correct
d is correct

Question No: 36
Petroleum contains complex carbon-hydrogen molecular structures called ------- that are linked together to form long chains of more complex molecules. a. Chains b. Connected Chains c. Complex Chains d. Linked Chains

a is correct
b is correct
c is correct
d is correct

Question No: 37
To acquire information accurately, various ------- techniques are used.

Vaporization
Exploitation
Exploration
None of these

Question No: 38
Chemically, --------------- is a mixture of carbon, hydrogen and oxygen.

Petroleum
Gold
Platinum
Coal

Question No: 39
Petroleum occurs in the earth in combination of any of the three states: gas, liquid and solid.

TRUE
FALSE
Can't say
None of the above

Question No: 40
Petroleum comes from the Latin “petra” means rock or stone, and 'oleum' means oil.

TRUE
FALSE
Can't say
None of the above