HYDROCARBON HYDROCARBON PRODUCTIVE CHAIN
HYDROCARBONS HYDROCARBONS PRODUCTIVE CHAIN
MINISTER OF MINES AND ENERGY Hernán Martínez Torres AGENCIA NACIONAL DE HIDROCARBUROS - ANH NATIONAL HYDROCARBONS AGENCY -ANH Decreto Ley 1760 de 2003 HYDROCARBONS PRODUCTIVE CHAIN DIRECTOR OF THE AGENCIA NACIONAL DE HIDROCARBUROS José Armando Zamora Reyes EDITORIAL COORDINATION Adriana Ospina Zapata CORPORATIVE COMMUNICATION Adriana Acero Cadena TEXTS Área de gestión del conocimiento (Knowledge management area) Área comunidades y medio ambiente (Communities and environment area) ILLUSTRATIONS John Israel Rojas Henao PHOTOS ANH DESIGN AND DIAGRAMATION TBWA \ COLOMBIA S.A. Bogotá – 2008
P
PRESENTATION PRESENTATION
The National Hydrocarbons Agency –ANH-, as the manager of the hydrocarbon resources of the country, is committed to the sustainable use of the resource, the respect for the cultural values of communities and the contribution to social development, in the setting of constitutional and legal mandates. In this sense, the National Hydrocarbons Agency - ANH –, by means of this publication, intends to facilitate information regarding each one of the activities of the hydrocarbons (oil and gas) productive chain to industry, communities and local and regional authorities.
INDEX Origin and location
5
Hydrocarbon productive chain
6
Seismic exploration stage
8
Exploratory drilling stage
20
Production stage
28
Transportation stage
32
Refining stage
34
Communities and development
38
ORIGIN AND LOCATION What are hydrocarbons? They are natural resources in liquid or gaseous state found underneath the soil, called OIL when in liquid state and GAS when in gaseous state.
What is the origin of hydrocarbons? Many years ago large amounts of plants and animals died, remaining deposited in the earth’s interior. Their decomposition, as an effect of high temperatures and pressure, gave its origin to hydrocarbons.
Millions of years ago!
Where are hydrocarbons found? They are found in the interior of the earth, within layers of material that do not allow hydrocarbons to move.
ROCK PORES
5
HYDROCARBONS
PRODUCTIVE CHAIN
EXPLORATORY DRILLING STAGE SEISMIC EXPLORATION STAGE
PRODUCTION STAGE
6
REFINING STAGE
TRANSPORTATION STAGE
COMMERCIALIZATION
7
SEISMIC SEISMIC EXPLORATION STAGE
8
Requirements to develop the seismic exploration process
1
When the activity is going to be carried out in the territory of ethnic groups (Indian or Afrodescendant) the previous consultation process must be sought, as established in Agreement 169 of the – ILO – International Labour Organization, ratified by Colombia by means of Law 21, 1991. This process is coordinated by the Ethnic Groups Direction of the Ministry of Justice and Internal Affairs.
2
The license for the exploitation of natural resources (forest produced, water, and flowing resources, among others) must be obtained with the – CAR – Regional Autonomous Corporation.
3
The company carrying out the project must explain in a clear and precise manner the activities it wants to develop.
4
If the project passes through private property, the company must obtain permits and pay for compensations.
5
Previous consulting is a procedure that allows conciliating the right to economic development of the nation and the special rights of ethnic groups, guaranteeing their ethnic, economic, social, cultural and environmental integrity through a joint and participative construction process framed under the principles of good faith, legitimacy, intercultural understanding and bilingualism, opportunity, legal pluralism and transparency.
9
Previous consulting is a procedure that allows conciliating the right to economic development of the nation and the special rights of ethnic groups, guaranteeing their ethnic, economic, social, cultural and environmental integrity through a joint and participative
10
construction process framed under the principles of good faith, legitimacy, intercultural understanding and bilingualism, opportunity, legal pluralism and transparency.
What is seismic exploration? It is a method used to study the rock layers present in the earth subsoil, consisting in the emission of sound waves through power generators (sismigel), which travel through the rock layers and are registered by instruments called geophones.
Why is seismic exploration carried out? To obtain an image of the subsoil, showing the shapes or traps with the required characteristics where the natural resource could have accumulated.
Important:
Seismic exploration does not determine the existence of hydrocarbons (oil or gas).
GEOPHONE
Does seismic exploration cause environmental damages? It is considered a low impact activity, meaning that it does not cause serious damage to natural resources or the environment, and for such reason it does not require an environmental license (Decree 1220, 2005).  
Important:
This activity must be developed according to the Environmental Base Guide for terrestrial seismic exploration programs according to the Resolution 1023 of July 28, 2005, issued by the Environmental, Housing and Territorial Development Ministry – MAVDT.
GEOPHONE
11
SEISMIC
EXPLORATION PROCESS
ECOLOGIC CUTTING
12
WHAT DOES THE SEISMIC EXPLORATION PROCESS CONSIST OF?
1
Narrow paths are cut through the terrain, and with the aid of topographic instruments, lines of several kilometers are drawn to obtain the course and orientation of the seismic line.
13
2
Over the line, small holes are dug where the power generators (sismigel) will be inserted to produce the waves.
manual drill
14
geophone
3
Geophones are fixed to the terrain and linked together by a cable, with the purpose of recording the waves emitted by the power generators.
geophone
15
4
16
The ENERGY WAVES penetrate the rock LAYERS under the soil, bounce back to the surface and reach the special equipment called GEOPHONES, which receive the information and transmit it to a computer.
5
The final product obtained by the seismic exploration is a representative IMAGE of the LAYERS beneath the soil.
SEISMIC IMAGE (SUBSOIL PHOTOGRAPHY)
17
18
What happens after the seismic exploration process is finished? The company that develops the seismic study has the obligation to abandon the area in good technical, social and environmental conditions.
19
EXPLORATORY EXPLORATORY DRILLING STAGE
20
Requirements to develop the exploratory drilling process
1
When the activity is going to be carried out in the territory of ethnic groups (Indian or Afrodescendant), the previous consultation process must be sought, as established in Agreement 169 of the – OLI – International Labour Organization, ratified by Colombia by means of Law 21, 1991. This process is coordinated by the Ethic Groups Direction of the Ministry of Justice and Internal Affairs.
2
Prior to initiating activities, the environmental license must be obtained, which is issued by the Environmental, Housing and Territorial Development Ministry – MAVDT.
3
The license for the exploitation of the natural resources (forest produce, water, flowing resources among others) must be obtained with the – CAR – Regional Autonomous Corporation.
4
The company carrying out the project must explain in a clear and precise manner the activities it wants to develop.
5
If the project passes through private property, the company must obtain permits and pay for compensations.
21
22
What is exploratory drilling? It consists in drilling wells to reach the rock layers where hydrocarbons (oil and gas) could have possibly accumulated. This stage generally begins once seismic information is obtained.
5
Drilling Tower Drill
23
What is the Exploratory Drilling Process?
1
Preparing the terrain for the construction of mud treatment pools, housing camps for workers, and drilling installations.
2
Well drilling to penetrate the ROCK LAYERS beneath the earth soil.
STORAGE TANKS
CAMP
24
PERFORATION TOWER
3
Carrying of rock cuttings, which are taken to the surface by a circulation system (drilling sludge or mud) and deposited in the mud pools for their treatment.
4
Treating both industrial and domestic water used in this activity, before it is discharged into the terrain.
MUD POOLS
25
26
5
Well abandonment: if after the perforation of the well it is proved that there are no hydrocarbons (oil and gas) the company proceeds to seal the well according to the Decree 1895 of 1973 issued by the Ministry of Mines and Energy.
6
Before abandoning the zone, the company must leave the area in good environmental conditions, according to what is established in the environmental license.
THE PRODUCTION STAGE IS STARTED IF HYDROCARBONS (OIL AND GAS) ARE FOUND WHEN DRILLING.
SEALING OF HOLES
MUD POOLS FILLING
27
PRODUCTION PRODUCTION STAGE
28
Requirements to develop the production process
1
When the activity is going to be carried out in the territory of ethnic groups (Indian or Afrodescendant), the previous consultation process must be sought, as established in Agreement 169 of the – OLI – International Labour Organization, ratified by Colombia by means of Law 21, 1991. This process is coordinated by the Ethic Groups Direction of the Ministry of Justice and Internal Affairs.
2
Prior to initiating activities, the environmental license must be obtained, which is issued by the Environmental, Housing and Territorial Development Ministry – MAVDT.
3
The license for the exploitation of the natural resources (forest produce, water, flowing resources among others) must be obtained with the – CAR – Regional Autonomous Corporation.
4
The company carrying out the project must explain in a clear and precise manner the activities it wants to develop.
5
If the project passes through private property, the company must obtain permits and pay for compensations.
29
What is production? It is the process by which hydrocarbons (oil and gas) are extracted from the rock layer to the surface. In this stage several wells can be drilled according to the size of the found field.
Storage Tank
Campground
30
Mechanisms Two mechanisms are used to extract hydrocarbons: with Valves called Christmas trees, when the hydrocarbons flow to the surface on their own, and/ or with a machine called Seesaw (BalancĂn), when these need support to come up to the surface.
Seesaw
Christmas Tree
31
TRANSPORTATION TRANSPORTATION STAGE
gas PIPELINE
32
What does transportation consist of?
How are hydrocarbons transported?
It consists in transporting hydrocarbons from the mouth of the well up to the storage and processing sites, such as pumping stations, refineries and commercializing centers (piers).
They are transported through oil pipellines (oil), gas pipelines (gas), trucks (oil) and ships (oil).
SEA TRANSPORTATION
LAND TRANSPORTATION oIL PIPELINE
33
REFINING REFINING STAGE
34
what does refining consist of? It consists in transforming oil by applying high temperatures that reach up to 400 degrees centigrade to obtain derived products.
Which products can be obtained from oil after it has been refined? Fuels (gasoline and diesel) and petrochemicals (Vaseline, brushes, tires, plastics), among others.
35 33
Which products can be obtained from oil after it has been refined?
Fuels
Polyethylene
36
Gasoline
gas
37
COMMUNITY AND COMMUNITY AND DEVELOPMENT
38
Good management of hydrocarbon royalties by regional and local administrations is reflected in the improvement of the quality of life of the communities and in the progress of the region.
Who benefits from hydrocarbon production? ALL COLOMBIANS, by means of energy availability, employment generation and increase of economic activity.
Additionally, districts and provinces benefit from the transfer of hydrocarbon royalties, as established by Laws 141, 1994 and 756, 2002.
39
Calle 99 No. 9A - 54 (piso 14) • Tel.: (57+1) 5931717 • Fax: (57+1) 5931718 • Bogotá. D.C. -Colombia www.anh.gov.co | info@anh.gov.co