Welcome to Natural Gas 101 Overview of Oil and Gas Industry by Michael Rozic ECI. Remote Automation Solutions 1

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1 Welcome to Natural Gas 101 Overview of Oil and Gas Industry by Michael Rozic ECI Remote Automation Solutions 1

2 from Well Head to Burner Tip or as they say in the industry Upstream Midstream Downstream Remote Automation Solutions 2

3 Remote Automation Solutions 3

4 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 4

5 What do Hydrocarbons Look Like? (Natural Gas Liguids) Remote Automation Solutions 5

6 What do Hydrocarbons Look Like? (Crude Oil) Remote Automation Solutions 6

7 What Products are made from Crude Oil and Natural Gas Liquids? Remote Automation Solutions 7

8 What do Hydrocarbons Look Like? NGL S Remote Automation Solutions 8 Methane C1

9 What do Hydrocarbons Look Like? NGL S Ethane C2 Remote Automation Solutions 9

10 What do Hydrocarbons Look Like? NGL S Propane C3 Remote Automation Solutions 10

11 What do Hydrocarbons Look Like? NGL S Butane C4 Remote Automation Solutions 11

12 What do Hydrocarbons Look Like? NGL S C1 C2 C3 C4 Remote Automation Solutions 12

13 What do Hydrocarbons Look Like? Crude Oil C48+ C27 C14 C7 Remote Automation Solutions 13

14 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 14

15 How were Oil & Gas Deposits Formed and Where are they located? Remote Automation Solutions 15

16 How were Oil & Gas Deposits Formed and Where are they located? Remote Automation Solutions 16

17 How were Oil & Gas Deposits Formed and Where are they located? Remote Automation Solutions 17

18 How were Oil & Gas Deposits Formed and Where are they located? Marcellus Shale Natural Gas (95,000 sq. miles) Remote Automation Solutions 18

19 How were Oil & Gas Deposits Formed and Where are they located? What is the Marcellus Shale? 5000 to 9,000 feet below the surface! The Marcellus Shale, also known as the Marcellus Formation, is a unit of marine sedimentary rock believed to have been formed around 400 million years ago under inland seas throughout much of the Appalachian basin. Microscopic plants and organisms were incorporated as the materials were deposited. The organisms were trapped in the bottom of the sea without oxygen. The organisms are still bound within the rock formation. Remote Automation Solutions 19

20 How were Oil & Gas Deposits Formed and Where are they located? Renz Well #1 Drill Rig 2003 Range Resources Remote Automation Solutions 20

21 Overview of the Oil and Gas Industry How were Oil & Gas Deposits Formed and Where are they located? Hydraulic Fracturing Renz Well # Universal Well Services Remote Automation Solutions 21

22 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 22

23 How are Hydrocarbons Extracted from the Earth? Remote Automation Solutions 23

24 How are Hydrocarbons Extracted from the Earth? Drilling Remote Automation Solutions 24

25 How are Hydrocarbons Extracted from the Earth? Drilling Remote Automation Solutions 25

26 How are Hydrocarbons Extracted from the Earth? Remote Automation Solutions 26

27 How are Hydrocarbons Extracted from the Earth? Casing Remote Automation Solutions 27

28 Production Separation, Treatment, Compression & Pipelines Remote Automation Solutions 28 Natural Gas

29 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Fracing, Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 29

30 Overview of the Oil and Gas Industry How are Hydrocarbons Extracted from the Earth? Remote Automation Solutions 30

31 How are Hydrocarbons Extracted from the Earth? Remote Automation Solutions 31

32 Production Unit / Seperator Remote Automation Solutions 32

33 Overview of the Oil and Gas Industry How are Hydrocarbons Extracted from the Earth? Remote Automation Solutions 33

34 Production Pipelines Remote Automation Solutions 34

35 Midstream Shipping and storage of oil and gas Provide a pipeline and system that will transport and process the gas and oil so it can be delivered to downstream (Transmission) Gas Transmission - large pipelines delivering dry gas Provide LNG Fractionation Plant Ethane, Propane and Butane Petroleum Transmission pipelines or trucking Link Upstream and Downstream! Remote Automation Solutions 35

36 Oil and Gas Storage Remote Automation Solutions 36 What is the polar vortex 36

37 Oil and Gas Storage Remote Automation Solutions 37 37

38 Oil and Gas Storage Remote Automation Solutions 38 38

39 Oil and Gas Storage Underground Storage Remote Automation Solutions 39 Gateway Underground Storage Crude Project Oil (3:30) 39

40 Oil and Gas Storage Remote Automation Solutions 40 40

41 Oil and Gas Storage Compressed Natural Gas (CNG) & Liquefied Natural Gas (LNG) Remote Automation Solutions 41 41

42 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Fracing, Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 42

43 Gas Processing and Fractionation Remote Automation Solutions 43 NGL 43

44 Mark West Fractionation Plant in Houston Pa. Remote Automation Solutions 44

45 Production Separation, Treatment, Compression & Pipelines Separation or Fractionation Plant Remote Automation Solutions 45

46 Gas Processing and Fractionation Remote Automation Solutions 46 46

47 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Fracing, Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 47

48 Overview of the Oil and Gas Industry Oil Refining, Distillation & Cracking Remote Automation Solutions Drilling and Refining (5:58 to 48 48

49 Oil Refining, Distillation & Cracking Remote Automation Solutions 49 49

50 What do Hydrocarbons Look Like? NGL S and Crude Oil How were Oil & Gas Deposits Formed and Where are they located? How are Hydrocarbons Extracted from the Earth? Production Fracing, Separation, Treatment, Compression & Pipelines Oil and Gas Storage Gas Processing and Fractionation Oil Refining and Distillation Oil and Gas Distribution Remote Automation Solutions 50

51 Gas Distribution System Deliver natural gas to consumers in a geographic area from transmissions pipelines Typically owned by investors or a public gas system owned by local governments Delivery system involves Gate station reduce pressure in the transmission lines from high pressure ( ) to distribution levels that can be.5 psi or 200 psi Odorant injection (make the gas smell) Measure flow rate of gas Custody transfer Measure quality of gas Gas Chromatograph, Moisture and Sulphur Analyzer Remote Automation Solutions 51

52 Gas Distribution System Control and adjust pressure based on temperatures and demands of the local community Regulators control the flow from higher to lower pressure (open and close valve to maintain pressure) Relief valves are used to vent gas if a line becomes overpressured and regulators malfunction Ensure gas customers receive enough gas or pressures above the levels required for their company operations or appliances Remote Automation Solutions 52

53 Natural Gas Gate Station Remote Automation Solutions 53

54 Natural Gas Gate Station Remote Automation Solutions 54

55 Gas Distribution System Remote Automation Solutions 55 55

56 Questions Remote Automation Solutions 56

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