How oil is extracted. We talk about the technological process in simple language (even a child will understand!)

Oil is the black gold of the planet. This expression is clear to everyone, because even children know what oil is and for what purpose it is used from school. Oil plays an important role in the country's economy. It is extremely profitable not only as a fuel, but also as a chemical raw material. Oil is a precious product of the bowels of the earth, it is a unique mineral of its kind. Fuel and many other products needed by modern people are obtained from oil. Moreover, after oil refining there is practically no waste left, since all its components are used for various purposes.

But do you know how “black gold” is actually mined? Most likely, most people have the following picture in their heads: a huge pipe was stuck into the ground, and immediately oil began to flow in a fountain. Is it so? Reconomica invites you to understand this issue, as well as consider some more interesting facts about this black precious raw material.

Peculiarities of the oil and gas industry abroad

The countries of the Near and Middle East are leaders in terms of oil reserves. Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain and other states in the region are located above a huge oil and gas basin, which includes more than 50% of the world's deposits. There is not much oil in Russia, but it is still among the top ten countries rich in “black gold”.

Oil production began back in the 3rd millennium BC. At that time, residents of the Middle East collected hydrocarbons from the surface of open water bodies to use them in the construction process. The first wells were drilled by the Egyptians using bamboo trunks. As for documented evidence of oil trade, it dates back to the 13th century.

Since 1858, mining of “black gold” began in Canada. The following year, the United States joined the development of the deposits. By the 20th century, the five largest oil exporting countries had emerged, consisting of Russia, the United States of America, Austria-Hungary, what is now Indonesia and India.

Today, the countries of the Near and Middle East, especially Saudi Arabia, Iraq, as well as the USA and the Russian Federation, are fighting for world leadership in hydrocarbon sales volumes.

Hydraulic fracturing

The most interesting thing happens directly at the well pad, where a real team of heavily loaded equipment and specialists who service it arrives. Everything is in strict accordance with the existing map and compliance with safety regulations.

Pipes and hoses that can withstand incredible pressure of several thousand atmospheres are removed from cars. Through them, pumps will deliver a unique composition directly into the well to increase the pressure underground to the maximum possible. This is done so that cracks appear in the rock layer, and only then access to difficult oil will be open.

All hydraulic fracturing connections are checked, because they must be perfectly tight, which is very difficult to achieve in cold weather. Not only does the metal instantly become covered with snow and ice, internal temperature changes also occur.

Accordingly, workers have to literally steam all pipes and connections, otherwise they will not be able to create a line. And if there is no tightness somewhere, then this will lead to various troubles, including line breaks.

Before starting the system, field workers are in a dense curtain of steam. Before starting the hydraulic fracturing process, it is necessary to carefully check the functionality of the entire system.

How much do oil workers earn in different countries of the world?

The level of wages in the field of oil and gas production traditionally exceeds the national average. This is explained by the demand for raw materials mined and subsequently sold by workers in this profile. Even line employees involved in preparing the area for development, drilling and servicing wells, as well as refining hydrocarbons have decent salaries. The monthly salary of top managers of oil producing companies is often tens of times higher than the average salary in the country.

Norwegian oil workers developing offshore fields receive $200-400 per day. In the United States, the weekly salary of an employee working in the mining industry is $1,500. Workers in the oil and gas industry in Iraq have approximately the same amount per month.

If we talk about Canada, the industry average here ranges from $4,500 to $5,000 per month. During the same period, an oil worker in Australia will receive about $14,000. As for Russia, in our country the average monthly salary of an employee of an oil producing company is 150,000 rubles, or almost $2,000.

Work in the USA in oil companies

Industrial development in the United States began in the late 19th century, when the first oil well was drilled in the foothills of the Appalachian Mountains. Since that time, hydrocarbons have become the basis of the state's fuel and energy base.

Refineries in America are located in a non-trivial way: while they are usually located near the places where raw materials are extracted, in the states, processing plants are concentrated near the main places of consumption. Moreover, these are not only cities with a population of over a million, but also ports-terminals, as well as large oil pipelines.

The US oil and gas industry is characterized by the following factors:

• The United States is one of the world's largest producers of petroleum products (gasoline, solvents, lubricants, electrical insulating materials, etc.);
• Daily oil production ranges from 7 to 11 million barrels;
• In terms of shale oil reserves, the United States ranks 2nd in the world (after the Russian Federation);
• The country offers low prices for refined petroleum products because it has a wide network of pipelines and boasts a developed transport infrastructure;
• The oil industry is owned by 10 monopolies, the largest of which is Exxon Mobil.

Work in oil companies in the United States of America is available mainly to citizens of the country, since competition in this area is enormous, and the advantage is always on the side of Native Americans. To be employed by an oil company, a foreigner must have a green card or an invitation from the direct employer.

If a green card is not available, then it is worth considering the second option, but the applicant must be a unique employee who is very necessary for the employer, since obtaining a work visa is a long and extremely expensive process.

Two hypotheses

Scientists still do not have a consensus on how oil was formed. There are two fundamentally different theories of the origin of oil. According to the first - organic, or biogenic - from the remains of ancient organisms and plants that over millions of years were deposited on the bottom of the seas or buried in continental conditions. Then they were processed by communities of microorganisms and transformed under the influence of temperature and pressure as a result of tectonic subsidence into the depths, forming oil source rocks rich in organic matter.

The necessary conditions for the transformation of organic matter into oil occur at a depth of 1.5–6 km in the so-called oil window - at temperatures from 70 to 190°C. In its upper part, the temperature is not high enough - and the oil turns out to be “heavy”: viscous, thick, with a high content of resins and asphaltenes. Below, the temperature of the layers rises so much that the molecules of organic matter are crushed into the simplest hydrocarbons - natural gas is formed. Then, under the influence of various forces, including gradient. Pressure gradient characterizes the degree of pressure change in space, in this case, depending on the depth of the pressure formation, hydrocarbons migrate from the oil source formation to the above or underlying rocks.

The natural process of oil formation from organic remains may take 60 million years

The natural process of oil formation from organic remains takes on average from 10 to 60 million years, but if an appropriate temperature regime is artificially created for organic matter, then an hour is enough for its transition to a soluble state with the formation of all main classes of hydrocarbons. Proponents of the organic hypothesis interpret such experiments in their favor: the transformation of organic matter into oil is obvious. There are other arguments in favor of the biogenic origin of oil. Thus, most industrial oil accumulations are associated with sedimentary rocks. Moreover, living matter and oil are similar in elemental and isotopic composition. In particular, biomarkers such as porphyrins, chlorophyll pigments that are widespread in wildlife, are found in most oil fields. Even more convincing is the coincidence of the carbon isotope composition of biomarkers and other oil hydrocarbons.

Composition and properties of oil

OIL CHARACTERISTICS CAN VARY SIGNIFICANTLY IN DIFFERENT FIELDS
The main chemical elements that make up oil: carbon - 83-87%, hydrogen - 12-14% and sulfur - up to 7%. The latter is usually present in the form of hydrogen sulfide or mercaptans, which can cause corrosion of equipment. Oils also contain up to 1.7% nitrogen and up to 3.5% oxygen in the form of various compounds. Oils contain very small quantities of rare metals (for example, V, Ni, etc.).

From field to field, the characteristics and composition of oil can vary greatly. Its density ranges from 0.77 to 1.1 g/cm³. The most common oils are with a density of 0.82–0.92 g/cm³. The boiling point varies from 30 to 600°C depending on the chemical composition. The distillation of oils into fractions is based on this property. Viscosity varies greatly depending on temperature. Surface tension can vary, but is always less than that of water: this property is used to displace oil by water from the pores of reservoir rocks.

Most scientists today explain the origin of oil with the biogenic theory. However, inorganics also provide a number of arguments in favor of their point of view. There are different versions of the possible inorganic origin of oil in the depths of the earth and other cosmic bodies, but they are all based on the same facts. First, many, although not all, deposits are associated with fault zones. Through these faults, according to supporters of the inorganic concept, oil rises from great depths closer to the surface of the Earth. Secondly, deposits occur not only in sedimentary, but also in igneous and metamorphic rocks (however, they could end up there as a result of migration). In addition, hydrocarbons are found in matter erupted from volcanoes. Finally, the third, most significant argument in favor of the inorganic theory is that hydrocarbons exist not only on Earth, but also in meteorites, comet tails, in the atmosphere of other planets and in dispersed cosmic matter. Thus, the presence of methane was noted on Jupiter, Saturn, Uranus and Neptune. On Titan, a satellite of Saturn, rivers and lakes have been discovered consisting of a mixture of methane, ethane, propane, ethylene and acetylene. If on other planets of the solar system these substances can be formed without the participation of biological objects, why is this impossible on Earth?

From the point of view of modern supporters of the inorganic, or mineral, hypothesis, hydrocarbons are formed from water and carbon dioxide contained in the Earth's mantle in the presence of ferrous metal compounds at depths of 100–200 km. High pressure in the bowels of the earth prevents the thermal destruction of complex hydrocarbon molecules. In turn, supporters of organics do not deny that simple hydrocarbons, such as methane, can also be of inorganic origin. Experiments aimed at confirming the abiogenic theory showed that the resulting hydrocarbons can contain no more than five carbon atoms, and oil is a mixture of heavier compounds. There is no explanation for this contradiction yet.

Stages of oil formation

STAGES OF SEDIMENTARY ROCK FORMATION AND OIL TRANSFORMATION

• sedimentation (sedimentogenesis) - in the process of sediment accumulation, the remains of living organisms fall to the bottom of water basins or are buried in a continental environment;
• biochemical (diagenesis) - compaction, dehydration of sediment and biochemical processes occur under conditions of limited oxygen access;
• protocatagenesis - lowering of a layer of organic remains to a depth of 1.5–2 km with a slow rise in temperature and pressure;
• mesocatagenesis, or the main phase of oil formation (GP N), is the lowering of a layer of organic residues to a depth of 3–4 km with a temperature rise of up to 150°C. In this case, organic substances undergo thermocatalytic destruction, resulting in the formation of bituminous substances that make up the bulk of micro-oil. Next, the oil is “squeezed out” due to the pressure drop and the emigration of micro-oil into reservoir layers, and through them into traps;
• apocatagenesis of kerogen, or the main phase of gas formation (MFG), is the lowering of a layer of organic residues to a depth (usually more than 4.5 km) when the temperature rises to 180-250°C. In this case, organic matter loses its oil-generating potential and generates gas.

How do oil workers work in Canada?

Canada has the third largest oil reserves in the world, so it is logical that field development is underway in 12 of the country's 13 provinces. Contributing $24 billion annually to the state's economy, the oil and gas industry is a truly national industry, employing approximately one million people.

Currently, the professions of drilling operations manager and oil and gas engineer lead the ranking of the most prestigious professions in Canada. Drilling Supervisor ranks first on the list, with an annual salary ranging from $180,000 to $230,000.

The Canadian Association of Drilling Contractors estimates that by 2022, there will be an additional 3,000 openings for the Drilling Operations Supervisor position. As for the oil and gas engineer, the demand for this profession will also grow along with the expansion of the geography of “black gold” production.

Companies involved in field development provide employees not only with an impressive salary, but also with a full benefits package.

How do oil workers work in the United Arab Emirates?

The UAE's oil resources are truly impressive - 97.8 billion barrels or 10th of all hydrocarbon reserves in the world. Commercial oil production began in the second half of the 1930s in Abu Dhabi. Despite the fact that the first deposits found in the UAE were on land, today the main work is carried out at sea.

Since offshore wells are located far from the shore, oil workers had to think about the problem of storing and transporting “black gold.” The issue was resolved technologically: by installing underwater tanks, to which tankers approached for loading. The vaults are shaped like upside-down champagne glasses and are called khazzans. Each hazzan is a steel dome the height of a 20-story building.

As for the amount of raw materials extracted, in this parameter the emirate of Abu Dhabi exceeds the emirates of Dubai, Sharjah and Ras al-Khaim combined by 20 times. In addition, the UAE almost completely meets its needs for refined petroleum products.

Employees of oil producing companies in the United Arab Emirates are provided with excellent working conditions: work on rigs equipped with the latest technology, a full benefits package, high (even by the standards of Arab countries) wages and accommodation in separate, closed towns.

Pros and cons of working abroad

The decision to leave your home state can be due to various reasons, but before leaving home, it is worth considering the advantages and disadvantages of a long stay in a foreign country.

Benefits of working abroad:

• High salary.

This is the first and main reason that encourages people to leave their usual places. Leading oil-producing European, Scandinavian and Arab countries surpass Russia in terms of living standards, therefore they offer foreign employees wages 2-10 times higher than the average in the Russian Federation.

• Traveling, getting to know a new culture.

Even specialists working on shifts have days off, which means they have the opportunity to study the life, culinary preferences and attractions of the country in which they work.

• Language learning.

Not all companies require candidates for vacant positions to have perfect knowledge of the English language, so if desired, an oil worker can not only improve his spoken/technical English, but also become familiar with the dialect spoken by local residents.

• Career growth.

Purposeful employees who are not afraid to leave their homeland for a promising job are especially valued by the heads of oil-producing corporations. Motivated foreigners are often proactive and active, and therefore have a great chance of getting a promotion.

• New acquaintances.

Working in another country involves communicating with people of different nations, which greatly broadens your horizons and allows you to make multicultural friends.

Disadvantages of working abroad:

• Psychological barrier.

Not all people easily part with their usual place of residence, family and close circle of acquaintances. In addition, the requirements of foreign companies in relation to communication at work can be strict, which further aggravates the problem of adaptation to a new position.

• Low skilled labor.

Only 20-30% of experienced employees are employed in a position similar to theirs or higher. The rest of the applicants have to accept the employer's conditions and begin career growth from the lower levels.

• Climatic conditions.

An oil worker who lived in Norilsk may feel not only psychologically, but also physically unwell in the UAE. And this is logical, because it is difficult for a person accustomed to extremely low temperatures to quickly acclimatize in hot conditions.

• High cost of infrastructure.

A high standard of living requires high rent for an apartment, utilities, transportation, food, etc. However, it must be said that oil corporations often take on most of the social expenses (medical insurance, dry rations or nutritious meals during the day, delivery to the place of work, etc.).

• Nostalgia.

No matter how interesting it is to experience a new culture and make new friends, sadness for family and hometown cannot be banished from the hearts of sentimental Russians.

Typical beginner mistakes

Many beginners who want to open a business from scratch with virtually no money make similar mistakes:

1. They come up with a lot of self-justifications and excuses. The most common beliefs that prevent you from starting are: it’s expensive, and I don’t have money; no time; it is difficult and scary; no connections; there is no room on the market, all ideas have already been implemented; I don't want to take risks; I don't know how to run a business. You need to put aside fears and act, there is no other way.
2. Pay little attention to detail. Typically, novice entrepreneurs start from basic ideas about the project and personal motivation. You should think more broadly and not reduce planning to minimal calculations.
3. They set goals incorrectly. When setting a goal, you should understand that you won’t be able to achieve everything right away. KPIs follow from the goals - key performance indicators that you will focus on in the process of work. Therefore, it is necessary to clearly answer the question why you need a business. Formulations like I want to secure my old age or become a free person are not suitable.
4. They ignore the stage of drawing up a business plan. Finance loves counting. If you don’t calculate the profitability of your investments, you can quickly burn out and go broke.
5. They don't research the market. You cannot act as you have to in business. You need to regularly analyze the situation (even after entering the market), be aware of changes and trends, and meet the current demands and needs of the audience. This will help prevent gross mistakes and find new ways for development and scaling.

Who works for foreign oil companies?

The oil industry of any state strives to fill vacancies with its citizens. This is not surprising, since in addition to providing jobs to the population, traditionally high wages in this industry provide an opportunity to greatly improve people's living standards. However, some countries, for various reasons, are not able to meet the need for experienced employees involved in field development, drilling wells and direct hydrocarbon production.

For example, highly developed industrial Norway, which has the largest oil reserves in Europe, constantly offers foreigners vacancies that involve working on offshore oil platforms. The employer helps with obtaining visas, and also pays for travel, housing, food, insurance and education.

Growth prospects

The main prospect for the growth and development of a company engaged in the wholesale or retail sale of petroleum products is access to the intercity or international level. This stage entails a significant increase in the current costs of the enterprise, increased costs for the logistics of goods, as well as an increase in the level of competition. In addition, the delivery time of sold products to the client increases.

Taking into account the remote location of settlements for dispatch and delivery of goods, during the time spent on transportation, the cost of the petroleum product may change. These fluctuations may be disadvantageous for both the supplier and the buyer, but in practice they are quite rare. In the early stages of a company's entry into the international market, profits may decrease due to increased transportation costs. In the future, taking into account the expansion of the customer base by bringing the enterprise to the international arena, sales volumes, and with them the profitability of the business, will increase.

Thus, a business related to the retail or wholesale sale of petroleum products, with a competent approach and maneuverability, can provide even a novice entrepreneur with high profit margins.

Where to look for a job as an oil worker?

Finding a job in the oil and gas industry has its own characteristics, but is not very different from the standard employment process. Vacancies are posted both on specialized resources (hh.ru, rabota.ru, joblab.ru) and through intermediaries cooperating with Russian and foreign companies.

An additional source can be the international job search platform LinkedIn, where recruiting agencies, as well as direct employers, regularly post vacancies. In addition, information about the availability of available positions is often mentioned on the official websites of oil and gas companies, so you should not neglect the study of digital platforms, including social networks, of potential employers.

Algorithm for buying oil on the exchange

It is unlikely that you need physical oil. To make money, it is better to pay attention to settlement instruments (futures or CFDs).

The process of purchasing them is quite simple:

1. Choosing a reliable broker. Pay attention to the fees charged and the availability of a license.
2. Register and download the trading terminal. We make a deposit.
3. Choosing a tool. Trading in raw materials is carried out on the Moscow Exchange, a number of foreign platforms and on the Forex market.
4. We complete the purchase transaction. This can be done on the Internet.

That's the whole algorithm. You are now the owner of oil futures. You can sell it at any time or wait until the expiration date (then settlements will be made automatically).