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Ian Wood (businessman)

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91-499: Sir Ian Clark Wood (born 21 July 1942) is a Scottish billionaire businessman and philanthropist. He is best known for his work in the North Sea oil industry with Wood Group , which he was largely responsible for transforming from a company of modest size, serving a primarily local market, to a large corporation with operations in over 50 countries. He served as Wood Group's chief executive from 1967 to 2006, and as chairman until 2012. Wood

182-571: A " fault-bounded anticlinal trap", was discovered in 1976 with well 11/30-1, drilled by the Mesa Petroleum Group (named after T. Boone Pickens' wife Bea, "the only oil field in the North Sea named for a woman") in 49 m of water. Volatile weather conditions in Europe's North Sea have made drilling particularly hazardous, claiming many lives (see Oil platform ). The conditions also make extraction

273-510: A costly process; by the 1980s, costs for developing new methods and technologies to make the process both efficient and safe far exceeded NASA 's budget to land a man on the moon. The exploration of the North Sea has continually pushed the edges of the technology of exploitation (in terms of what can be produced) and later the technologies of discovery and evaluation (2-D seismic, followed by 3-D and 4-D seismic ; sub-salt seismic; immersive display and analysis suites and supercomputing to handle

364-520: A fluid resembling petroleum, which when treated in the same way as the seep oil gave similar products. Young found that by slow distillation he could obtain several useful liquids from it, one of which he named "paraffine oil" because at low temperatures it congealed into a substance resembling paraffin wax. The production of these oils and solid paraffin wax from coal formed the subject of his patent dated October 17, 1850. In 1850, Young & Meldrum and Edward William Binney entered into partnership under

455-512: A much shallower level. The Athabasca oil sands are one example of this. An alternative mechanism to the one described above was proposed by Russian scientists in the mid-1850s, the hypothesis of abiogenic petroleum origin (petroleum formed by inorganic means), but this is contradicted by geological and geochemical evidence. Abiogenic sources of oil have been found, but never in commercially profitable amounts. "The controversy isn't over whether abiogenic oil reserves exist," said Larry Nation of

546-476: A process known as catagenesis . Formation of petroleum occurs from hydrocarbon pyrolysis in a variety of mainly endothermic reactions at high temperatures or pressures, or both. These phases are described in detail below. In the absence of plentiful oxygen, aerobic bacteria were prevented from decaying the organic matter after it was buried under a layer of sediment or water. However, anaerobic bacteria were able to reduce sulfates and nitrates among

637-643: A significant amount of petroleum while drilling for lignite in Wietze , Germany. Wietze later provided about 80% of German consumption in the Wilhelminian Era. The production stopped in 1963, but Wietze has hosted a Petroleum Museum since 1970. Oil sands have been mined since the 18th century. In Wietze in lower Saxony, natural asphalt/bitumen has been explored since the 18th century. Both in Pechelbronn as in Wietze,

728-471: A similar period energy from gas imports have risen by a factor of approximately 10, from 60GWh in 2001 to just over 500GWh in 2019. UK oil production has seen two peaks, in the mid-1980s and the late 1990s, with a decline to around 300×10 m³ (1.9 million barrels) per day in the early 1990s. Monthly oil production peaked at 13.5×10 m³ (84.9 million barrels) in January 1985 although the highest annual production

819-574: A source of internal and inter-state conflict, leading to both state-led wars and other resource conflicts . Production of petroleum is estimated to reach peak oil before 2035 as global economies lower dependencies on petroleum as part of climate change mitigation and a transition towards renewable energy and electrification . The word petroleum comes from Medieval Latin petroleum (literally 'rock oil'), which comes from Latin petra 'rock' (from Greek pétra πέτρα ) and oleum 'oil' (from Greek élaion ἔλαιον ). The origin of

910-411: A variety of liquid, gaseous, and solid components. Lighter hydrocarbons are the gases methane , ethane , propane and butane . Otherwise, the bulk of the liquid and solids are largely heavier organic compounds, often hydrocarbons (C and H only). The proportion of light hydrocarbons in the petroleum mixture varies among oil fields . An oil well produces predominantly crude oil. Because the pressure

1001-520: A visit to Fort Duquesne in 1750. Early British explorers to Myanmar documented a flourishing oil extraction industry based in Yenangyaung that, in 1795, had hundreds of hand-dug wells under production. Merkwiller-Pechelbronn is said to be the first European site where petroleum has been explored and used. The still active Erdpechquelle, a spring where petroleum appears mixed with water has been used since 1498, notably for medical purposes. There

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1092-547: A year before Drake's Pennsylvania operation and could be argued to be the first commercial oil well in North America. The discovery at Oil Springs touched off an oil boom which brought hundreds of speculators and workers to the area. Advances in drilling continued into 1862 when local driller Shaw reached a depth of 62 metres using the spring-pole drilling method. On January 16, 1862, after an explosion of natural gas , Canada's first oil gusher came into production, shooting into

1183-491: Is 1.4 mbpd. This is a more than 50% decline since the peak in 2001 of 3.2 mbpd. The geological disposition of the UK's oil and gas fields is outlined in the following table. Kittiwake, Gannet Middle: Brent, Bruce, Eider, Heather, Hutton, Ninian, Tern Lower to Middle: Beatrice Dotty, Douglas, Esmond, Hamilton, J-Block, Morecambe Bay Lower: Hewett Lower Permian (Rotliegend): Camelot, Indefatigable, Leman, Viking, West Sole In

1274-487: Is called diagenesis , a word that means a transformation of materials by dissolution and recombination of their constituents. Kerogen formation continued to a depth of about 1 km from the Earth's surface where temperatures may reach around 50 °C . Kerogen formation represents a halfway point between organic matter and fossil fuels : kerogen can be exposed to oxygen, oxidize and thus be lost, or it could be buried deeper inside

1365-717: Is considered a sticky, black, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow. Venezuela also has large amounts of oil in the Orinoco oil sands , although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil . These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570 × 10 ^  m ) of bitumen and extra-heavy oil, about twice

1456-738: Is done after a study of the relevant structural geology , analysis of the sedimentary basin , and characterization of the petroleum reservoir . There are also unconventional reserves such as oil sands and oil shale which are recovered by other means such as fracking . Once extracted, oil is refined and separated, most easily by distillation , into innumerable products for direct use or use in manufacturing. Products include fuels such as gasoline (petrol), diesel , kerosene and jet fuel ; asphalt and lubricants ; chemical reagents used to make plastics ; solvents , textiles , refrigerants , paint , synthetic rubber , fertilizers , pesticides , pharmaceuticals , and thousands of others. Petroleum

1547-473: Is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas . A gas well produces predominantly natural gas . However, because the underground temperature is higher than at the surface, the gas may contain heavier hydrocarbons such as pentane, hexane , and heptane (" natural-gas condensate ", often shortened to condensate. ) Condensate resembles gasoline in appearance and

1638-451: Is minor relative to the overall running costs. Petroleum Petroleum is a naturally occurring yellowish-black liquid mixture. It consists mainly of hydrocarbons , and is found in geological formations . The term petroleum refers both to naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil. Conventional reserves of petroleum are primarily recovered by drilling , which

1729-737: Is now called the Drake Well in Cherrytree Township, Pennsylvania .There also was a company associated with it, and it sparked a major oil drilling boom. The first commercial oil well in Canada became operational in 1858 at Oil Springs, Ontario (then Canada West ). Businessman James Miller Williams dug several wells between 1855 and 1858 before discovering a rich reserve of oil four metres below ground. Williams extracted 1.5 million litres of crude oil by 1860, refining much of it into kerosene lamp oil. Williams's well became commercially viable

1820-579: Is often difficult to forecast future discoveries. Official production data from 1995 to 2020 is published by the UK government. Table 3.10 lists annual production, import and exports over that period. When it peaked in 1999, production of North Sea oil was 128 million tonnes per year, approx, 950,000 m³ (6 million barrels ) per day, having risen by ~ 5% from the early 1990s. However, by 2010 this had halved to under 60 million tonnes/year, and continued declining further, and between 2015 and 2020 has hovered between 40 and 50 million tonnes/year, at around 35% of

1911-525: Is one of Scotland's wealthiest people, with an estimated net worth of around £1.7 billion (2020). In 2007, Wood and his immediate family set up The Wood Foundation – a venture philanthropy organisation. Wood was born in Aberdeen on 21 July 1942 and educated at Robert Gordon's College , and then the University of Aberdeen , where he studied psychology and graduated in 1964. After leaving university he joined

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2002-451: Is similar in composition to some volatile light crude oils . The hydrocarbons in crude oil are mostly alkanes , cycloalkanes and various aromatic hydrocarbons , while the other organic compounds contain nitrogen , oxygen , and sulfur , and traces of metals such as iron, nickel, copper and vanadium . Many oil reservoirs contain live bacteria. The exact molecular composition of crude oil varies widely from formation to formation but

2093-493: Is the world's busiest, with 500,000 passengers per year. Following the 1958 Convention on the Continental Shelf and after some disputes on the rights to natural resource exploitation the national limits of the exclusive economic zones were ratified. Five countries are involved in oil production in the North Sea. All operate a tax and royalty licensing regime. The respective sectors are divided by median lines agreed in

2184-473: Is used in manufacturing a vast variety of materials essential for modern life, and it is estimated that the world consumes about 100 million barrels (16 million cubic metres ) each day. Petroleum production played a key role in industrialization and economic development. Some countries, known as petrostates , gained significant economic and international power over their control of oil production and trade. Petroleum exploitation can be damaging to

2275-425: Is worth an estimated £1.7 billion, a decrease of £54 million on the previous year. Wood spent 16 years as head of Robert Gordon University, stepping down in 2021. In 2010 Donald Trump was awarded an honorary degree from the university. This provoked considerable opposition and the degree was removed after Dr David Kennedy returned his own degree in protest and journalist/campaigner Suzanne Kelly's petition opposing

2366-670: The Earth's crust and be subjected to conditions which allow it to slowly transform into fossil fuels like petroleum. The latter happened through catagenesis in which the reactions were mostly radical rearrangements of kerogen. These reactions took thousands to millions of years and no external reactants were involved. Due to the radical nature of these reactions, kerogen reacted towards two classes of products: those with low H/C ratio ( anthracene or products similar to it) and those with high H/C ratio ( methane or products similar to it); i.e., carbon-rich or hydrogen-rich products. Because catagenesis

2457-698: The Eskdale anticline in 1938, and in 1939 they found commercial oil in Carboniferous rocks at Eakring in Nottinghamshire . Discoveries elsewhere in the East Midlands lifted production to 400 m³ (2,500 barrels) per day, and a second wave of exploration from 1953 to 1961 found the Gainsborough field and ten smaller fields. The Netherlands' first oil shows were seen in a drilling demonstration at De Mient during

2548-448: The North Sea , Norway's Equinor natural-gas platform Sleipner strips carbon dioxide out of the natural gas with amine solvents and disposes of this carbon dioxide by geological sequestration (" carbon sequestration ") while keeping up gas production pressure. Sleipner reduces emissions of carbon dioxide by approximately one million tonnes a year; that is about 1 ⁄ 9000th of global emissions. The cost of geological sequestration

2639-502: The Norwegian Continental Shelf . Total reserves of the field are estimated at 1.7 to 3.3 billion barrels of gross recoverable oil, and Johan Sverdrup is expected to produce 120,000 to 200,000 barrels of oil per day. Production started on 5 October 2019. As of January 2015 , the North Sea was the world's most active offshore drilling region, with 173 active rigs drilling. By May 2016, the North Sea oil and gas industry

2730-616: The Norwegian Sea and the area known as "West of Shetland", "the Atlantic Frontier" or "the Atlantic Margin" that is not geographically part of the North Sea. Brent crude is still used today as a standard benchmark for pricing oil, although the contract now refers to a blend of oils from fields in the northern North Sea. From the 1960s to 2014 it was reported that 42 billion barrels of oil equivalent (BOE) had been extracted from

2821-484: The Orinoco Belt . While significant volumes of oil are extracted from oil sands, particularly in Canada, logistical and technical hurdles remain, as oil extraction requires large amounts of heat and water, making its net energy content quite low relative to conventional crude oil. Thus, Canada's oil sands are not expected to provide more than a few million barrels per day in the foreseeable future. Petroleum consists of

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2912-780: The Soviet Union in total output. In 1973 , Saudi Arabia and other Arab nations imposed an oil embargo against the United States, United Kingdom, Japan and other Western nations which supported Israel in the Yom Kippur War of October 1973. The embargo caused an oil crisis . This was followed by the 1979 oil crisis , which was caused by a drop in oil production in the wake of the Iranian Revolution and caused oil prices to more than double. The two oil price shocks had many short- and long-term effects on global politics and

3003-533: The United States , but is responsible for only one percent of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodities . The top three oil-producing countries as of 2018 are the United States, Russia , and Saudi Arabia . In 2018, due in part to developments in hydraulic fracturing and horizontal drilling ,

3094-455: The actinomycetales order of bacteria also produced antibiotic compounds (e.g., streptomycin ). Thus the action of anaerobic bacteria ceased at about 10 m below the water or sediment. The mixture at this depth contained fulvic acids, unreacted and partially reacted fats and waxes, slightly modified lignin , resins and other hydrocarbons. As more layers of organic matter settled into the sea or lake bed, intense heat and pressure built up in

3185-567: The 12th century. It has also been present in Romania since the 13th century, being recorded as păcură. Sophisticated oil pits, 4.5 to 6 metres (15 to 20 ft) deep, were dug by the Seneca people and other Iroquois in Western Pennsylvania as early as 1415–1450. The French General Louis-Joseph de Montcalm encountered Seneca using petroleum for ceremonial fires and as a healing lotion during

3276-700: The 1938 World Petroleum Congress at The Hague. Subsequent exploration led to the 1943 discovery by Exploratie Nederland, part of the Royal Dutch/Shell company Bataafsche Petroleum Maatschappij, of oil under the Dutch village of Schoonebeek , near the German border. NAM found the Netherlands' first gas in Zechstein carbonates at Coevorden in 1948. 1952 saw the first exploration well in the province of Groningen, Haren-1, which

3367-427: The 1999 peak. From 2005 the UK became a net importer of crude oil, and as production declined, the amount imported has slowly risen to ~ 20 million tonnes per year by 2020. Similar historical data is available for gas. Natural gas production peaked at nearly 10 trillion cubic feet (280×10 m³) in 2001 representing some 1.2GWhr of energy; by 2018 UK production had declined to 1.4 trillion cubic feet, (41×10 m³). Over

3458-494: The American Association of Petroleum Geologists. "The controversy is over how much they contribute to Earth's overall reserves and how much time and effort geologists should devote to seeking them out." Three conditions must be present for oil reservoirs to form: The reactions that produce oil and natural gas are often modeled as first order breakdown reactions, where hydrocarbons are broken down to oil and natural gas by

3549-455: The Earth's surface. Unusual magma intrusions, however, could have created greater localized heating. Geologists often refer to the temperature range in which oil forms as an "oil window" . Below the minimum temperature oil remains trapped in the form of kerogen. Above the maximum temperature the oil is converted to natural gas through the process of thermal cracking . Sometimes, oil formed at extreme depths may migrate and become trapped at

3640-796: The Mid North Sea High were dry, as the Rotliegendes was absent, but BP's Sea Gem rig struck gas in the West Sole Field in September 1965. The celebrations were short-lived since the Sea Gem sank, with the loss of 13 lives, after part of the rig collapsed as it was moved away from the discovery well. The Viking Gas Field was discovered in December 1965 with the Conoco /National Coal Board well 49/17-1, finding

3731-629: The North Sea (onshore, West of Shetland). United Kingdom Continental Shelf production was 137 million tonnes of oil and 105 billion m³ of gas in 1999. (1 tonne of crude oil converts to 7.5 barrels). The Danish explorations of Cenozoic stratigraphy, undertaken in the 1990s, showed petroleum-rich reserves in the northern Danish sector, especially the Central Graben area. The Dutch area of the North Sea followed through with onshore and offshore gas exploration, and well creation. Exact figures are debatable, because methods of estimating reserves vary and it

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3822-405: The North Sea since when production began. As there is still an estimated 24 billion BOE potentially remaining in the reservoir (equivalent to about 35 years worth of production), the North Sea will remain as an important petroleum reservoir for years to come. However, this is the upper end of a range of estimates provided by Sir Ian Wood (commissioned by the UK government to carry out a review of

3913-636: The North Sea, became more economical after the 1973 oil crisis caused the world oil price to quadruple, followed by the 1979 oil crisis , which caused another tripling in the oil price. Oil production started from the Argyll & Duncan Oilfields (now the Ardmore) in June 1975 followed by Forties Oil Field in November of that year. The inner Moray Firth Beatrice Field, a Jurassic sandstone / shale reservoir 1829 m deep in

4004-525: The Norwegian North Sea alone (excluding smaller reserves in Norwegian Sea and Barents Sea) of which 2,778 million cubic metres (60%) has already been produced prior to January 2007. UK sources give a range of estimates of reserves, but even using the most optimistic "maximum" estimate of ultimate recovery, 76% had been recovered as of the end of 2010. Note the UK figure includes fields which are not in

4095-552: The Robert Gordon University. In April 2010, Aberdeen City Council accepted his conditional investment of up to £85m (£50m confirmed, £35m pledged should the project exceed its budget), towards a project of £140m to redesign the Union Terrace Gardens , The project was supported by some local businesses though opposed by a large number of local residents. The Union Terrace Gardens project was passed by referendum but

4186-523: The Soviet Union included the goal to capture the Baku oilfields , as it would provide much-needed oil supplies for the German military which was suffering from blockades. Oil exploration in North America during the early 20th century later led to the U.S. becoming the leading producer by mid-century. As petroleum production in the U.S. peaked during the 1960s, the United States was surpassed by Saudi Arabia and

4277-561: The United States became the world's largest producer. About 80 percent of the world's readily accessible reserves are located in the Middle East , with 62.5 percent coming from the Arab five: Saudi Arabia , United Arab Emirates , Iraq , Qatar , and Kuwait . A large portion of the world's total oil exists as unconventional sources, such as bitumen in Athabasca oil sands and extra heavy oil in

4368-609: The air at a recorded rate of 480 cubic metres (3,000 bbl) per day. By the end of the 19th century the Russian Empire, particularly the Branobel company in Azerbaijan , had taken the lead in production. Access to oil was and still is a major factor in several military conflicts of the 20th century, including World War II , during which oil facilities were a major strategic asset and were extensively bombed . The German invasion of

4459-539: The area around modern Baku , Azerbaijan . These fields were described by the Persian geographer Abu Bakr al-Razi in the 10th century, and by Marco Polo in the 13th century, who described the output of those wells as hundreds of shiploads. Arab and Persian chemists also distilled crude oil to produce flammable products for military purposes. Through Islamic Spain , distillation became available in Western Europe by

4550-413: The award was signed by approximately 80,000 people. who felt Trump's behaviour was contrary to RGU's values. In 2011, Wood Group transferred North Sea staff to a company in a tax haven apparently to avoid employer national insurance contributions, a move criticised by Scottish politicians, while union official Jake Molloy described it as “morally and ethically contemptible”. Ian Wood retired from Wood Group

4641-474: The coal industry dominated the petroleum technologies. Chemist James Young in 1847 noticed a natural petroleum seepage in the coal mine at riddings Alfreton , Derbyshire from which he distilled a light thin oil suitable for use as lamp oil, at the same time obtaining a more viscous oil suitable for lubricating machinery. In 1848, Young set up a small business refining crude oil. Young eventually succeeded, by distilling cannel coal at low heat, in creating

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4732-564: The earliest Chinese writings, cites that oil in its raw state, without refining, was first discovered, extracted, and used in China in the first century BCE. In addition, the Chinese were the first to record the use of petroleum as fuel as early as the fourth century BCE. By 347 CE, oil was produced from bamboo-drilled wells in China. In the 7th century, petroleum was among the essential ingredients for Greek fire , an incendiary projectile weapon that

4823-469: The environment and human health. Extraction , refining and burning of petroleum fuels all release large quantities of greenhouse gases , so petroleum is one of the major contributors to climate change . Other negative environmental effects include direct releases, such as oil spills , as well as air and water pollution at almost all stages of use. These environmental effects have direct and indirect health consequences for humans. Oil has also been

4914-425: The fact that it happened at relatively low temperatures (when compared to commercial pyrolysis plants) of 60 to several hundred °C. Pyrolysis was possible because of the long reaction times involved. Heat for catagenesis came from the decomposition of radioactive materials of the crust, especially K , Th , U and U . The heat varied with geothermal gradient and was typically 10–30 °C per km of depth from

5005-674: The family business, becoming managing director in 1967. He was appointed Commander of the Order of the British Empire (CBE) in the 1982 New Year Honours and was knighted in the 1994 New Year Honours . He has been awarded honorary doctorates by the University of Aberdeen in 1984, The Robert Gordon University in Aberdeen in 1998, Glasgow Caledonian University in 2002, and Heriot-Watt University in 2012. Since 2004, he has served as chancellor of

5096-590: The flood of computation required). The Gullfaks oil field was discovered in 1978. The Snorre Field was discovered in 1979, producing from the Triassic Lunde Formation and the Triassic-Jurassic Statfjord Formation, both fluvial sandstones in a mudstone matrix. The Oseberg oil field and Troll gas field were also discovered in 1979. The Miller oilfield was discovered in 1983. The Alba Field produces from sandstones in

5187-405: The following year. Wood has three sons with his wife Helen, and six grandchildren. They have a second home at Loch Tummel , Perthshire. North Sea oil North Sea oil is a mixture of hydrocarbons , comprising liquid petroleum and natural gas , produced from petroleum reservoirs beneath the North Sea . In the petroleum industry , the term "North Sea" often includes areas such as

5278-503: The full extent of what became known as the Groningen gas field was not appreciated until 1963—it is currently estimated at ≈96 × 10 ^  cu ft (2,700 km ) recoverable gas reserves. Smaller discoveries to the west of Groningen followed. The UK Continental Shelf Act came into force in May 1964. Seismic exploration and the first well followed later that year. It and a second well on

5369-560: The gas-bearing Permian Rotliegend Sandstone at a depth of 2,756 m subsea. Helicopters were first used to transport workers. Larger gas finds followed in 1966 – Leman Bank, Indefatigable and Hewett – but by 1968 companies had lost interest in further exploration of the British sector, a result of a ban on gas exports and low prices offered by the only buyer, British Gas . West Sole came onstream in May 1967. Licensing regulations for Dutch waters were not finalised until 1967. The situation

5460-728: The giant Brent oilfield in the northern North Sea east of Shetland in Scotland and the Petronord Group discovered the Frigg gas field . The Piper oilfield was discovered in 1973 and the Statfjord Field and the Ninian Field in 1974, with the Ninian reservoir consisting of Middle Jurassic sandstones at a depth of 3000 m subsea in a "westward tilted horst block". Offshore production, like that of

5551-742: The global economy. They led to sustained reductions in demand as a result of substitution to other fuels, especially coal and nuclear, and improvements in energy efficiency , facilitated by government policies. High oil prices also induced investment in oil production by non-OPEC countries, including Prudhoe Bay in Alaska, the North Sea offshore fields of the United Kingdom and Norway, the Cantarell offshore field of Mexico, and oil sands in Canada. About 90 percent of vehicular fuel needs are met by oil. Petroleum also makes up 40 percent of total energy consumption in

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5642-408: The heavier end of the range, paraffin wax is an alkane with approximately 25 carbon atoms, while asphalt has 35 and up, although these are usually cracked in modern refineries into more valuable products. The lightest fraction, the so-called petroleum gases are subjected to diverse processing depending on cost. These gases are either flared off , sold as liquefied petroleum gas , or used to power

5733-589: The invention of the modern kerosene lamp (1853), the introduction of the first modern street lamp in Europe (1853), and the construction of the world's first modern oil "mine" (1854). at Bóbrka , near Krosno (still operational as of 2020). The demand for petroleum as a fuel for lighting in North America and around the world quickly grew. The first oil well in the Americas was drilled in 1859 by Edwin Drake at what

5824-446: The large number of co-eluted hydrocarbons within oil, many cannot be resolved by traditional gas chromatography. This unresolved complex mixture (UCM) of hydrocarbons is particularly apparent when analysing weathered oils and extracts from tissues of organisms exposed to oil. Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish, reddish, or even greenish). In

5915-505: The late 1960s: The Norwegian and British sectors hold most of the large oil reserves. It is estimated that the Norwegian sector alone contains 54% of the sea's oil reserves and 45% of its gas reserves. More than half of the North Sea oil reserves have been extracted, according to official sources in both Norway and the UK. For Norway, Oljedirektoratet gives a figure of 4,601 million cubic metres of oil (corresponding to 29 billion barrels) for

6006-411: The lower regions. As a consequence, compounds of this mixture began to combine in poorly understood ways to kerogen . Combination happened in a similar fashion as phenol and formaldehyde molecules react to urea-formaldehyde resins, but kerogen formation occurred in a more complex manner due to a bigger variety of reactants. The total process of kerogen formation from the beginning of anaerobic decay

6097-899: The matter to H 2 S and N 2 respectively by using the matter as a source for other reactants. Due to such anaerobic bacteria, at first, this matter began to break apart mostly via hydrolysis : polysaccharides and proteins were hydrolyzed to simple sugars and amino acids respectively. These were further anaerobically oxidized at an accelerated rate by the enzymes of the bacteria: e.g., amino acids went through oxidative deamination to imino acids , which in turn reacted further to ammonia and α-keto acids . Monosaccharides in turn ultimately decayed to CO 2 and methane . The anaerobic decay products of amino acids, monosaccharides, phenols and aldehydes combined into fulvic acids . Fats and waxes were not extensively hydrolyzed under these mild conditions. Some phenolic compounds produced from previous reactions worked as bactericides and

6188-521: The middle Eocene Alba Formation at 1860 m subsea and was discovered in 1984 in UKCS Block 16/26. The Smørbukk Field was discovered in 1984 in 250–300 m of water that produces from Lower to Middle Jurassic sandstone formations within a fault block. The Snøhvit Gas Field and the Draugen oil field were discovered in 1984. The Heidrun oil field was discovered in 1985. The largest UK field discovered in

6279-462: The north. Amoco were astonished when the well discovered oil. BP had been awarded several licences in the area in the second licensing round late in 1965, but had been reluctant to work on them. The discovery of Ekofisk prompted them to drill what turned out to be a dry hole in May 1970, followed by the discovery of the giant Forties Oil Field in October 1970. The following year, Shell Expro discovered

6370-491: The oil industry in the United Kingdom ); the lower end was 12 billion barrels. Wood, upset with how his figures were being used, said the most likely amount to be found would be between 15 billion and 16 billion barrels. Commercial extraction of oil on the shores of the North Sea dates back to 1851, when James Young retorted oil from torbanite (boghead coal, or oil shale) mined in the Midland Valley of Scotland. Across

6461-420: The past twenty-five years is Buzzard , also located off Scotland, found in June 2001 with producible reserves of almost 64×10 m³ (400m bbl) and an average output of 28,600 m to 30,200 m (180,000–220,000 bbl) per day. The largest field found in the past five years on the Norwegian part of the North Sea is the Johan Sverdrup oil field , which was discovered in 2010. It is one of the largest discoveries made in

6552-541: The principles of venture philanthropy, investing both money and expertise to achieve systemic change . Wood was promoted to Knight Grand Cross of the Order of the British Empire (GBE) in the 2016 Birthday Honours for services to the oil and gas industry. In June 2018 he was appointed a Knight of the Order of the Thistle (KT) in the 2018 Birthday Honours . According to the Sunday Times Rich List in 2020, Wood

6643-556: The proportion of chemical elements varies over fairly narrow limits as follows: Four different types of hydrocarbon appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil. The alkanes from pentane (C 5 H 12 ) to octane (C 8 H 18 ) are refined into gasoline, the ones from nonane (C 9 H 20 ) to hexadecane (C 16 H 34 ) into diesel fuel , kerosene and jet fuel . Alkanes with more than 16 carbon atoms can be refined into fuel oil and lubricating oil . At

6734-644: The refinery's own burners. During the winter, butane (C 4 H 10 ), is blended into the gasoline pool at high rates, because its high vapour pressure assists with cold starts. The aromatic hydrocarbons are unsaturated hydrocarbons that have one or more benzene rings . They tend to burn with a sooty flame, and many have a sweet aroma. Some are carcinogenic . These different components are separated by fractional distillation at an oil refinery to produce gasoline, jet fuel, kerosene, and other hydrocarbon fractions. The components in an oil sample can be determined by gas chromatography and mass spectrometry . Due to

6825-412: The reservoir it is usually found in association with natural gas, which being lighter forms a "gas cap" over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in a semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen . In Canada, bitumen

6916-509: The same time the world's first, small, oil refinery was opened at Jasło in Poland (then Austria), with a larger one opened at Ploiești in Romania shortly after. Romania (then being a vassal of the Ottoman empire) is the first country in the world to have had its annual crude oil output officially recorded in international statistics: 275 tonnes for 1857. In 1858, Georg Christian Konrad Hunäus found

7007-610: The sea in Germany, oil was found in the Wietze field near Hanover in 1859, leading to the discovery of seventy more fields, mostly in Lower Cretaceous and Jurassic reservoirs, producing a combined total of around 1340 m³ (8,400 barrels) per day. Gas was found by chance in a water well near Hamburg in 1910, leading to minor gas discoveries in Zechstein dolomites elsewhere in Germany. In England, BP discovered gas in similar reservoirs in

7098-518: The second half of the 19th century, the term became commonly known for the liquid form of hydrocarbons. Petroleum, in one form or another, has been used since ancient times. More than 4300 years ago, bitumen was mentioned when the Sumerians used it to make boats. A tablet of the legend of the birth of Sargon of Akkad mentions a basket which was closed by straw and bitumen. More than 4000 years ago, according to Herodotus and Diodorus Siculus , asphalt

7189-408: The term stems from monasteries in southern Italy where it was in use by the end of the first millennium as an alternative for the older term " naphtha ". After that, the term was used in numerous manuscripts and books, such as in the treatise De Natura Fossilium , published in 1546 by the German mineralogist Georg Bauer , also known as Georgius Agricola. After the advent of the oil industry, during

7280-528: The title of E.W. Binney & Co. at Bathgate in West Lothian and E. Meldrum & Co. at Glasgow; their works at Bathgate were completed in 1851 and became the first truly commercial oil-works in the world with the first modern oil refinery. The world's first oil refinery was built in 1856 by Ignacy Łukasiewicz in Austria. His achievements also included the discovery of how to distill kerosene from seep oil,

7371-468: The volume of the world's reserves of conventional oil. Petroleum is a fossil fuel derived from fossilized organic materials , such as zooplankton and algae . Vast amounts of these remains settled to sea or lake bottoms where they were covered in stagnant water (water with no dissolved oxygen ) or sediments such as mud and silt faster than they could decompose aerobically . Approximately 1 m below this sediment, water oxygen concentration

7462-612: Was activity in various parts of the world in the mid-19th century. A group directed by Major Alexeyev of the Bakinskii Corps of Mining Engineers hand-drilled a well in the Baku region of Bibi-Heybat in 1846. There were engine-drilled wells in West Virginia in the same year as Drake's well. An early commercial well was hand dug in Poland in 1853, and another in nearby Romania in 1857. At around

7553-414: Was closed off from external reactants, the resulting composition of the fuel mixture was dependent on the composition of the kerogen via reaction stoichiometry . Three types of kerogen exist: type I (algal), II (liptinic) and III (humic), which were formed mainly from algae , plankton and woody plants (this term includes trees , shrubs and lianas ) respectively. Catagenesis was pyrolytic despite

7644-455: Was financially stressed by the reduced oil prices , and called for government support. The distances, number of workplaces, and fierce weather in the 750,000 square kilometre (290,000 square mile) North Sea area require the world's largest fleet of heavy instrument flight rules (IFR) helicopters, some specifically developed for the North Sea. They carry about two million passengers per year from sixteen onshore bases, of which Aberdeen Airport

7735-405: Was later rejected by the council. In July 2012, Wood announced that he would retire as chairman of Wood Group, with Allister Langlands as his successor. In 2014, Wood had a net worth of £1.32 billion. Wood is chairman of The Wood Foundation, investing in two areas of activity: making markets work for the poor in sub-Saharan Africa and developing young people in Scotland. The Foundation applies

7826-423: Was low, below 0.1 mg/L, and anoxic conditions existed. Temperatures also remained constant. As further layers settled into the sea or lake bed, intense heat and pressure built up in the lower regions. This process caused the organic matter to change, first into a waxy material known as kerogen , found in various oil shales around the world, and then with more heat into liquid and gaseous hydrocarbons via

7917-419: Was seen in 1999, with offshore oil production in that year of 407×10 m³ (398 million barrels) and had declined to 231×10 m³ (220 million barrels) in 2007. This was the largest decrease of any oil-exporting nation in the world, and has led to Britain becoming a net importer of crude for the first time in decades, as recognized by the energy policy of the United Kingdom . Norwegian crude oil production as of 2013

8008-522: Was the first to penetrate the Lower Permian Rotliegendes sandstone that is the main reservoir for the gas fields of the southern North Sea, although in Haren-1 it contained only water. The Ten Boer well failed to reach target depth for technical reasons, but was completed as a minor gas producer from the Zechstein carbonates. The Slochteren-1 well found gas in the Rotliegendes in 1959, although

8099-503: Was transformed in December 1969, when Phillips Petroleum discovered oil in Chalk of Danian age at Ekofisk , in Norwegian waters in the central North Sea. The same month, Amoco discovered the Montrose Field about 217 km (135 mi) east of Aberdeen . The original objective of the well had been to drill for gas to test the idea that the southern North Sea gas province extended to

8190-475: Was used by Byzantine Greeks against Arab ships, which were then attacking Constantinople . Crude oil was also distilled by Persian chemists , with clear descriptions given in Arabic handbooks such as those of Abu Bakr al-Razi (Rhazes). The streets of Baghdad were paved with tar , derived from petroleum that became accessible from natural fields in the region. In the 9th century, oil fields were exploited in

8281-539: Was used in the construction of the walls and towers of Babylon ; there were oil pits near Ardericca and Babylon, and a pitch spring on Zakynthos . Great quantities of it were found on the banks of the river Issus , one of the tributaries of the Euphrates . Ancient Persian tablets indicate the medicinal and lighting uses of petroleum in the upper levels of their society. The use of petroleum in ancient China dates back to more than 2000 years ago. The I Ching , one of

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