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Oil and Gas Exploration Project. A Lab Exercise ANDREW M. GOODLIFFE. Oil and Gas Exploration Project. Gives the students the opportunity to sample a small amount of what goes into exploring for oil and gas
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Oil and Gas Exploration Project A Lab Exercise ANDREW M. GOODLIFFE
Oil and Gas Exploration Project • Gives the students the opportunity to sample a small amount of what goes into exploring for oil and gas • Modified from a lab in Freidman and Johnson [1982], (via Reames and Carrigan at Olivet). • Serves as a “partial capstone” experience • Students combine material covered during a topographic maps lab, and material covered during a fossil fuels section in class • Emphasizes student collaboration – both within and between teams • Introduces an economic factor – this appeals to many business majors • Competitive • Not everyone likes this!
Student Learning Objectives • At the end of this lab, students are able to: • Contour a geological horizon using point measurements and profile data • Identify simple structural petroleum traps • Determine coordinates using the Township and Range system (useful when buying a house in many states) • Synthesize basic geological data to target a potentially productive oil and gas well • Make more informed choices about team members!
The Lab • Students are “given” $2 million in start up capital • They are allowed to form corporations comprising of up to 3 students (a greater number presenting the issue of a monopoly) • Corporations must keep all of their data confidential • On approval of the instructor, corporations can enter into deals (for example, sell data, knowledge)
The Lab • Students are provided with a map that has point measurements of the depth to a known reservoir rock • They contour this map (hopefully before the start of lab) • There are many area where there are no data • Students are encouraged not to over-extrapolate
The Lab Profile location • With their new map, students must now bid on leases in order to drill • At any time, corporations can improve their chances of hitting oil and gas by buying additional data (structural interpretations, $10,000/mile) along section edges) • Maps can be improved as data is added • Competitive lease sales take place every 30 minutes – corporations might end up with no leases • Corporations can make bids in ¼ section units (160 acres), no more than 20 bids every 30 minutes $60,000 worth of data….
The Lab • Once a corporations wins a bid, it can now drill • One well per 40 acre tract • $50,000 per well • Corporations submit well locations to the instructor • Based on a master map held by the instructor, wells are dry, produce gas, or produce oil • Oil producing wells generate $100,000 per 30 minutes • Gas producing wells produce $50,000 per 30 minutes • A list of leaseholders and producing wells is maintained at the front of the classroom
Grading • Class grade is assigned on a corporation basis • The corporation with the most money at the end of the lab exercise gets 220 point (100%) • The corporation that places 8th gets 150 points (69%)