It occurred to me
when the jeep hit a bad pothole and my head hit the ceiling, adding another
misery to the already aching neck, shoulders, the hips, the lower back
and the seat. This was probably the richest and the poorest road in the
world, I thought. I was on my way to find a place called Samah, an oilfield
in the Libyan Sahara desert.
11:00 am, 11 December 2007
My journey started from Tripoli, Libya, (there is a Tripoli in Lebanon
too, there is a Tripoli in Iowa, one in Wisconsin and yet another one
in Greece). My efforts to find road maps to my destination, Samah, had
failed. Google Earth was very slow and finding a thin black line of a
road that vanished and reappeared in the all brown background was providing
no clues. Asking from people was fruitless, as no one I knew had heard
of the place. When I asked the people at WOC head office in Tripoli, they
gave me a pipeline map - a pipeline buried under a meter of sand in the
desert.
Samah oilfield is being managed by Waha Oil Company (called WOC) in Libya.
Al Waha is an arabic word that means oasis. Al means "the".
WOC took over the operations of an american company called Oasis which
until 1986 used to be owned 59.2% by Libya, 16.3% by Conoco (then the
operator), 16.3% by Marathon and 8.2% by Amerada Hess. The takeover was
a part of a plan that started in 1973 to own 100% of the three major American
oil companies working in Libya, namely Oasis, Texaco and Occidental, after
Oasis was accused of allowing Israeli spies disguised as oil workers.
The funny part is that American oil executives were asked to submit plans
of their own buyout.
On December 21, 1988, a Pan Am Flight 103 from London to
New York blew up over Scotland, killing all 259 people aboard the Boeing
747 jumbo jet and 11 residents of the town of Lockerbie. In late
1991, the United States and Britain accused Libyans Abdel Basset al-Megrahi
and Al-Amin Khalifa Fahima of involvement. In March 1992, U.N. Security
Council Resolution 748 told Libya to surrender the suspects. Libya refused
and sanctions were imposed on April 15, 1992. The U.N. Security Council
later imposed an air and arms embargo and a ban on some oil equipment
on Libya in 1992 and 1993 to pressure Tripoli to hand over two Libyan
suspects for trial. Sanctions were suspended when Libya turned them over
in April 1999. Britain restored diplomatic ties with Libya in 1999 when
the two accused Libyans were handed over to the UK for trial. Intelligence
agent Abdel Basset al-Megrahi was convicted. The second suspect was acquitted.
On April 30, 2003, the Libyan government accepted responsibility for Lockerbie
and set up a fund to compensate victims' families. Compensation could
reach $2.7 billion, or $10 million per victim. Under the deal an initial
$4 million would be paid for each victim once U.N. sanctions ended. That
would be followed by another $4 million if the United States lifts its
sanctions and by $2 million if it drops Libya from the U.S. list of state
sponsors of terrorism. On the other hand Germany still wants compensation
for victims of attack on a Berlin discotheque and refuses to lift an arms
embargo.
Sirte basin in Libya ranked 13th largest oil basin in the
world contains approximately 80% of Libya's proven oil
reserves and accounts for 90% of production. Libyan onshore oil
has been discovered mainly in three geological trends of the Sirte Basin.
The western fairway, which includes several large oil fields (Samah, Beida,
Raguba, Dahra-Hofra, and Bahi). The North-center of the country, which
contains the giant Defa-Waha field and Nasser fields, as well as the large
Hateiba gas field. The Easterly trend, which has large fields like Sarir,
Messla, Gialo, Bu Attifel, Intisar, Nafoora-Augila, and Amal. Samah is
120 kilometers from Defa-Waha oilfield.
Waha is about 400 kilometers from the southern shore of the Mediterranean
sea. In the central/southern part of the Sirte Basin, south of the Waha
mountains. Waha oilfield was a giant found in 1960 by Conoco at 6,000
feet. Since 1992 production has fallen from 190,000 b/d to less than 40,000
b/d of 36 degrees API oil, which has caused WOC's output to fall from
500,000 b/d in the 1980s to 400,000 b/d in 1992 and 300,000 b/d now. Waha
and WOC's other fields are linked to the Es Sider terminal on the Mediterranean
coast by a 267-mile pipeline. WOC has been the worst sufferer of the US
embargo. This is because its fields have been equipped mainly with US-made
machinery for which it could not get spare parts. In the same way, at
their peak in 1970, fields operated by another oil company Oxy, produced
660,000 barrels a day. Today those old fields, operated by National Oil
Corporation, produce fewer than 100,000 barrels a day. There is obviously
a reason why Libya wanted the sanctions ended at any costs. A senior libyan
politician recently said, Americans would take the risk and invest to
upgrade the Libyan oil infrastructure. I say the politician was very polite
in praising the Americans, because who would not invest and take such
risks with the upcoming elections, the soaring oil prices, an oil giant
Iran becoming a nuisance, another oil giant Saudi Arabia experiencing
home grown terrorists, and amidst all this Libya providing premium grade
oil at half the travel distance. And with estimated reserves of roughly
36 billion barrels--the 9th-largest reserve in the world--Libya is not
about to run out of oil anytime soon. The oil reservoirs on this richest
road of the world are located a comparatively shallow 5,000 feet below
the surface, and the crude flows abundantly. Moreover, it costs just a
few dollars per barrel in Libya as compared with $5 to $10 in Texas or
the North Sea - no wonder Yankees are salivating to come back.
My visit to Samah was followed by the redevelopment phase started by WOC
in Samah and I had to establish the first contact with the oilfields site
management and also find means and methods to mobilize manpower, tools,
equipment and materials to execute and upcoming project. I flew into Ras
Lanuf using a chartered flight that serves the Petro Canada
oilfields in the region and started looking around to rent a four
wheel drive jeep for my onward journey. Four wheel drive vehicles were
not allowed to be owned or driven in the cities and you could find them
only in the desert, either owned by people living in the desert or the
oil companies involved in exploration. A typical problem is that such
vehicles owned by citizens are not in a very good shape. Ras Lanuf is
an oilfields terminal at the southern most shores of the Mediterranean
sea and a town with around 40,000 inhabitants consisting of the employees
of the nearby oil industries. If you look at the map of the Mediterranean
sea, two cities "Ras Lanuf" and "Marsa Al burayqah"
show at the southern most shores of the sea in the Gulf of Sidra. This
makes the length of the pipeline shorter bringing crude oil from the mid
Sahara, and ships come closer to the source. Petro Canada (called Veba
Oil Operations in Libya) and Ras Lanuf Oil and Gas processing Company
(called RASCO) operate from the Ras Lanuf Terminal. Watching million barrel
ships getting loaded at the terminal every few days and sailing off to
distant lands carrying a 100 million dollar worth of brown, black or green
goop, makes you ponder over the priorities of our world.
Faraj, a local transporter who provides various services to our company
came to help and promised to bring a dependable jeep at 2:30pm. He finally
decided to show up at 5pm, when I had almost lost hope and was about to
start my journey into the sahara on a two wheel regular pickup used by
our site engineer at Ras Lanuf. A young driver dressed in an orange T-shirt,
camouflage colored 24 pocketed jungle pants, and a mullet head did not
speak English. I do not speak Arabic. Faraj and Omar the driver kept speaking
in Arabic and it seemed that they were both not sure where Samah is. They
kept saying "Mafeesh muskkala" and "inshallah" which
actually means "no problem" and "God willing" but
when said is such situations may also mean "I am not sure" and
"you are on your own" etc. etc.
5:15 pm, 11 December 2007
When we left Ras lanuf the sun had already set and you could see the crimson
line on the horizon. The jeep had no air conditioning or heating and one
could smell the fuel inside. There were no seat belts and the seats could
not be reclined. It took us an hour and a half to arrive at Al Burayqah
which is east of Ras Lanuf. Also commonly known as Brega, its a small
town on the Gulf of Sidra mainly inhabited by the employees of Sirte Oil
Company and The Al-Nahr Company. It was originally a small fishing village
which was destroyed completely during the second world war. It contained
nothing but land mines when it was chosen as a terminal for the first
ever oil pipeline in Libya. Active exploration started in Libya in 1953
after oil was discovered in neighboring Algeria. The first well was begun
in 1956 in western Fezzan, and the first oil was struck in 1957. Esso
(subsequently ExxonMobil) made the first commercial strike in 1959, just
as several firms were planning to give up exploration. The first oil flowed
by pipeline from Esso's concession at Zelten 120kms south of Al Burayqah
to its export facilities at Marsa al Burayqah in 1961. The rush was on,
with other companies entering Libya and additional discoveries being made.
By 1969 about 33 oil companies held concessions for oil exploration and
marketing in Libya.
Libyan crude oil, while having a rather high wax content, is lighter and
easier to handle than crudes from most other petroleum areas. It also
has a low sulfur content, which makes it easier on internal combustion
engines and less of a pollution contributant than other crudes. For this
reason, Libyan crudes had a receptive market in Europe from the start;
furthermore, Libya is one-third closer to European markets than the oil
ports of the eastern Mediterranean. When the Suez Canal was closed by
the June 1967 War, forcing tankers from Iran, Iraq, and the Arabian Peninsula
to go around the Cape of Good Hope, the advantages of Libyan petroleum
were enhanced. Moreover, the lay of the land itself, which allows the
output of the wells to be piped directly and easily to dockside totally
over Libya's territory, assured steadiness of supply, which has not necessarily
been the case for eastern Mediterranean pipeline outlets. In addition,
Libya's petroleum development benefited from the technology and experience
acquired by the industry in other parts of the petroleum world during
the preceding fifty years. Thus, by 1977 Libya was the seventh largest
oil producer in the world. However, Libya's position declined somewhat
in the early 1980s as OPEC production quotas were cut. By 1986 Libya was
only the fifteenth largest producer of crude oil.
At present, there is an oil refinery belonging to and run
by Sirte Oil Company, which is a subsidiary of the state owned National
Oil Corporation (NOC). In July 1970, NOC's jurisdiction was expanded
by legislation that nationalized the foreign-owned Esso, Shell, and Ente
Nazionale Idrocarbuno (ENI) marketing subsidiaries, and also a small local
company, Petro Libya, and transferred their operations to NOC. These operations
included managing companies in the importing, distributing, and selling
of refined petroleum products at subsidized prices in Libya. In 1971 as
a result of the Libyan governments nationalization campaign, the 4 companies
were merged into a single countrywide marketing enterprise called the
Brega Company, which also marketed oil and gas abroad for the government.
The refinery was run in partnership with the Esso during
the 60’s and 70's. By the early 80’s, Esso had left, passing
full control over to Sirte Oil Company. If you have ever been to the Exxon
facility in Texas, you will find no difference while roaming around Brega.
6:30 pm, 11 December 2007
Driving south on the road starting from Brega, the first huge establishment
that falls on the east side of the road is the pipe manufacturing plant
of the Al-Nahr Company Ltd (ANC). Al-Nahr is government owned execution
arm or the main contractor of the Great Man Made River project (GMMR)
in Libya. GMMR is a man made network of pipes, approximately 2000 kilometers
long, mostly 4 meters in diameter, weighing approximately 80 tons per
7.5 meter length, bringing water from the fossil aquifer known as the
Nubian Sandstone Aquifer System. It accumulated during the last ice age
and is not currently being replenished.
Some sources say that it is the largest engineering project ever
taken and is locally termed as the eighth wonder of the
world. The largest underground network of pipes in the world consists
of more than 1300 wells, most more than 500m deep, and currently supplies
6,500,000 m³ of freshwater per day to the cities of Tripoli, Benghazi,
Sirte and elsewhere. In 1953, efforts to find oil in southern Libya led
to the discovery of huge quantities of fresh water underground. The GMMR
was conceived in the late 1960s and work on the project began in 1984.
The then Brown & Root of Houston now owned by Halliburton created
the specifications and Price Brothers of Ohio were responsible for designing
and supplying the pipe manufacturing equipment. The primary contractor
for the first phases was a Korean Company called Dong Ah. Due to budget
constraints, at present the main contractor is Al Al-Nahr Company Ltd
and Dong Ah has 25% shares in Al Al-Nahr The total cost of the project
is projected at more than 25 billion US dollars. Libya claims to have
completed the work to date without the financial support of major countries
or loans from world banks. On 28 August 1984, foundation stones for two
plants, for manufacturing the prestressed concrete cylinder
pipes were laid - one at Brega and the other
one at Sarir, which is the main location of the aquifer. The main labor
force comprised of low cost bodies like of Philippinos, Pakistanis, Indians,
Sri Lankans, Bangladeshis, and Egyptians. Many countries of the world
and newspapers have called the GMMR a mysterious project in the past.
The 1997, the New York Post said though the gargantuan lattice work of
underground pipes, wells and pumping stations will someday make the desert
bloom from Tripoli to Kufra in the deep desert, the pipeline is also an
underground tunnel stretching from Tunisia to Egypt and in the south,
it will reach almost to Sudan and Chad. In the same year, a British army
intelligence officer said that the 2-7 meter deep pipeline tunnel system
could allow Libya to conceal troop movements, gain an element of surprise
over an enemy, and protect the troops from pre-emptive strikes. Many
theorists also tried to find similarities between North Korea's underground
military system with elaborate storage facilities and tunnel routes for
vehicles and troops. Despite the fact that the money generating oil industry
was suffering from the embargo on trade since 1986, yet the money spending
GMMR was awash with American equipment as the whole project relied on
Cummins engines, Caterpillar earth-moving equipment, Baker Hughes drilling
bits, Dowell Schlumberger cementing units and chemicals, as well as mining
and drilling equipment from Soilmec and other international companies.
Similarly, GE did business in Libya during the sanction years through
its Italian subsidiary Nuovo Pignone. Thus many American companies got
around the sanctions by having the work in Libya done by their foreign
subsidiaries. CNN website says, While sanctions crippled Iraq's oil industry,
the embargo against Libya proved as porous as the sedimentary rock that
holds its oil. Transactions made by proxy are beyond the reach of the
American sanctions law only if the subsidiary acts strictly on its own,
without any guidance from its American parent. The European Union did
not bar commercial trade with Libya, largely because many European countries
relied on Libya for their oil and gas. It is revenue from the oil trade
that finances the Great Man-Made River Project. And thus, one way that
Libya acquires American equipment is by routing it through European companies
and sister offices of American companies, with or without the American
company's knowledge of the ultimate destination - how convenient it seems
to bypass the embargo. Some one once said, its not important to be doing
things in the right way, but the important thing is that you should give
the impression of doing things the right way. The inception of GMMR gave
birth to a number of conspiracy theories, yet many researchers and analysts
considered the 25 billion spending on a military strategy or a water supply
scheme a little excessive.
But think of it again, trying to make the world's biggest desert bloom
at any cost seems like a miracle not just the eighth wonder of the world.
Time magazine has called the GMMR a plan to make the desert gush. For
a long time, Libya's supply of water came from underground aquifers or
desalination plants on the coast. Water derived from desalination or aquifers
near the coast was of poor quality and sometimes undrinkable. Excessive
abstraction led to large draw down of water table and consequently sea
water intrusion to the coast aquifers. Also very little water was available
for irrigating land for agriculture in a largely desert country. Different
options had been considered to address this problem, which included importing
water by ships, desalination of seawater, or laying a pipeline from Europe.
Geological revelations during the oil rush in Libya showed that up to
120,000 cubic kilometers of water lay beneath the Sahara Desert dating
14-38,000 years. If water is extracted from this aquifer at a rate of
1380 MCMY, it will last 4800 years. It emerged that within a given budget,
the Great Man-Made River Project would yield five times more water cost
effectively than the above three options combined. The project will carry
more than 5 million cubic meters per day across the desert and increase
the size of arable land from 327,000 hectares (1991) by 60,000 hectares
(1992) and another 180,000 hectares in the second half of the decade.
GMMR will be pumping more than twice as much water a day as the present
volume of OPEC's daily oil production. It has been recorded in the Guinness
Book of Records (1993) with respect to cost, period of construction, number
of personnel involved, equipment and technology used. The Great Man-Made
River is a new lesson and an example in the struggle to achieve self-sufficiency
and food security. UNEP says, as all materials are locally manufactured
from locally available raw materials, GMMR could also be the biggest projects
in the world ensuring the concept of sustainability.
The richness of the road does not end at the Al Al-Nahr PCCP (Precast
Concrete Cylinder Pipe) manufacturing plant spread on some 60 hectares,
where approximately 10,000 humans and 4500 machines look like ants working
on huge pipe cylinders. Prestressed Concrete Cylinder Pipe (PCCP) consists
of a steel cylinder embedded in a concrete core, which is helically wrapped
with high-strength, hard-drawn wire after curing. The wire is embedded
in a thick cement slurry and coated with a dense cement mortar. An easily
assembled watertight joint is provided by using bell and spigot steel
joint rings welded to the ends of the cylinder and sealed with a confined
round rubber gasket. Our jeep was stopped at a check post and the drivers
exchanged some sentences in Arabic with the policemen and we were allowed
to carry on with our onwards journey. As it was getting dark, I was getting
familiarized with the strange language of flashing head light and the
indicators that Omar was continuously using to communicate with other
vehicles on the single road. A right flasher meant that the vehicle behind
could overtake and the left probably meant "if you try to pass me,
please live to tell that I warned you". A timed combination of flashers
meant thank you and a timed high and low combination of head light meant
"if you are not blind then i might as well ensure that".
7:05 pm, 11 December 2007
We were stopped by armed policemen at a barrier on the road and they asked
Omar for vehicle registration documents. He was about to reach the glove
compartment when the conversation between them took a friendly turn and
so there was no need to show the papers. They started discussing the route
to Samah and after a few "Inshallah" we were allowed to proceed.
A few meters from the barrier a road turned westwards and upon my asking
Omar said that it was the road to Haqal Hateeba. Haqal is an arabic work
meaning an oilfield. Haqool is the plural of Haqal.
Omar was driving at 30 kilometers per hour and later I found out he was
anticipating a bad patch on the road. The bad patch soon turned into huge
cracks that looked like alligators, crescents, ruts and potholes the size
of the jeep. Omar left the road and starting driving in the sand following
tire tracks for miles and miles. Soon the older tracks on the dirt too
were causing a lot of discomfort and he kept looking for undisturbed sand
to drive on.
After about half an hour of zig zagging on both sides of the road, I noticed
that we had not seen a single vehicle on the road. Although, you would
see a bright light at a distance every now and then, which would turn
out to be a gas flare from an oilfield when you approached near. There
were flares every few kilometers on both sides. We were driving on the
road that connected about 230 oil wells, and the area was responsible
for the biggest chunk of crude production in the country. We climbed the
small mountainous range of Zelten mountains and saw some lights from a
few rigs, a flare and a pool of something approaching soon.
Interest in GeoPhysics or similar faculties of science, and a simple search
on the web can provide a lot of information on the Sirte-Zelten Petroleum
system. There is one dominant petroleum system in the Sirte Basin sourced
by the Cretaceous Sirte Shale. In the Central Sirte Basin, carbonates
of Upper Cretaceous, Paleocene and Eocene age produce in 150 fields on
significant horst blocks or platforms (e.g., the Beda and Zelten platforms).
Reservoirs are largely carbonate build-ups and reefs with some offshore
production in the Gulf of Sirte. Carbonate reservoirs are largely related
to two Upper Cretaceous and two Paleocene cycles of sedimentation in a
syn-rift fill sequence; however, there is minor Mid-Cretaceous calcarenite
production. Giant oil fields in this unit include Intistar, Beda, Defa,
Waha, Haram, Zelten (Nasser), Hofra and Nafoora. Upper Cretaceous Sirte
Shale of the Rakb Group is the dominant source rock. Geochemical data
of 81 oils demonstrate that the Sirte Shale generates a low sulfur, high
gravity oil with low gas oil ratios. Generation began in Eocene era and
continues to present. Onshore the petroleum is dominantly oil; however,
offshore increased thermal gradients and deeper burial suggest higher
gas oil ratios and natural gas potential. The Upper Cretaceous carbonate
reservoirs are commonly dolomites whereas the lower Paleocene cycles include
calcilutites, calcarenites, oolites and skeletal debris. The petroleum
system is named after the Zelten Formation, which was deposited in this
latter Paleocene transgression.
There are about 40,000 conventional oil and gas fields in the world, where
as 90% of the known reserves are concentrated in fewer than 1500 giant
fields in less than 15 countries. The biggest conventional field in the
world has a proven capacity of around 80 billion barrels and is in Saudi
Arabia called the Ghawar field, also known as "the elephant of all
elephants" in the oil industry. The second biggest is in Kuwait,
the third in Mexico and the fourth in Venezuela. The Sarir field is the
biggest in Libya with about 12 billion estimated reserves.
7:30 pm, 11 December 2007
We were stopped again by armed policemen and this time we were asked about
our destination and show them our desert passes. A desert pass is provided
to oilfield workers like me by the Libyan Government after extensive security
checks and you can not enter the oilfields areas, refineries or export
terminals without a desert pass. A desert pass is valid for only two months.
I have some friends who have been working in the Libyan oilfields for
the last 25 years and they have been renewing their desert passes after
every two months too. A road branched off to the west going to the town
of Marada. Marada is the second biggest town with around 11000 inhabitants
in the municipality (Baladia in Arabic) of Adjabiya. Adjabiya being the
biggest town and the commercial centre in the municipality with about
31000 inhabitants. The local VEBA Oil Operations (VOO) a subsidiary of
Petro Canada currently produces some 90,000 barrels of oil equivalent
per day from its Zenad/ Ghani, Jofra, Lehib/ Marada, Tibisti, Barrut North,
En Naga and Amal oilfields located in the Sirte Basin of Libya. I had
visited Zenad/ Ghani, Jofra, Tibisti and Amal in the past and all these
cities were connected by air using small planes and even the roads were
quite reasonable. I also knew that Marada connects Ghani, Jofra and Tibisti.
Later while returning from Samah I found out that Samah was 40 kilometers
south of Tibisti. I wished someone had given me this information earlier.
7:50 pm, 11 December 2007
A few minutes after the check post we were slowed down by sand piling
on the road with blowing nightly winds in the desert. The road became
worst and the piling sand was filling the potholes making it a comfortable
drive. I thanked my luck for not embarking on this journey on a 2x4 vehicle
as crossing these sand piles at this time of the night would have ensured
a night stay in the vehicle in the middle of now cooling down sahara.
The temperatures in sahara can rise to 55 degrees C in the day and go
down to 5 degrees C in the night. The window or split type air-conditioners
installed in the accommodations in the desert, which are mostly portable
cabins made of insulated sandwich panels, have to have heat pumps. And
on a normal day, you will be running your cooler at full blast. In the
night the heater at full blast is not uncommon too.
8:10 pm, 11 December 2007
I heard a beep on my cell phone and was amazed to see that I had maximum
reception signals. Omar told me that the Almadar Telecom works for around
50 kilometers in this area. We were stopped at another check post and
we were asked to show our desert passes again. Just after the check post
the road divides into two, one leg going to the Haqal Jabal which was
on my route to Samah, and the other leg entering Haqal Nasser or the Zelten
area. We saw a very small grocery store which Omar mentioned was the only
super market serving a diameter of around 200 kilometers. We also noticed
that it was closed at that time. A few meters from the check post we saw
an overturned car and the driver stopped to investigate or was it to urinate,
I wasn't sure. There is an unwritten protocol in the desert, where you
must stop and offer help, if you see a vehicle stopped or especially overturned
on the roadside. He tapped the car, kicked the bonnet and called a few
times to ensure that there was no one inside. A few more zig zags around
the richest and the poorest road and we started climbing the Jabal Waha
- the mountain of the oasis. It was quiet dark and I couldn't see the
shape of the mountains, I could just notice the hallows at a distance,
so I decided to make my return journey when there was enough day light.
I saw camps of many international and local oil service companies like
Baker Eastern and Schlumberger on the west side of the road.
United States, China, Japan, Russia and Germany are the biggest consumers
and USA, China, Japan, Germany and South Korea are the biggest importers
of oil in the world. Looking at a list of largest producers, exporters,
consumers and importers of oil in the world, one can see that USA is the
third largest producer with 8 million barrels per day but also is the
largest consumer at 22 million barrels per day, meaning USA imports about
12 million barrels per day, making her the largest importer too. Saudi
Arabia on the other hand is the largest producer and the largest exporter,
exports 8 million barrels per day, almost the same as what USA produces.
The United States, with about 5% of the world's population, is responsible
for 25% of the world's oil consumption while only having 3% of the world's
proven oil reserves. China being the sixth largest producer at 4 million
barrels per day consumes almost double of her production and thus has
to import 4 million barrels per day. Presently, Libya contests for the
15th largest oil producing country in the world and the 11th largest exporter.
There are 8 countries in the world that consume more than 2 million barrels
per day, 6 countries in the world that import more than 2 million barrels
per day, 16 counties in the world that produce more than 2 million barrels
per day and only 8 that can export more than 2 million barrels per day.
In Saudi Arabia on an average a person uses 75 barrels per year, in United
States 60 barrels per year, in UK around 30 barrels per year, in China
about 5 barrels per year and in Pakistan about 2 barrels per year. The
world uses 12.5 barrels per capita per year. There are about 132 oil companies
in the world - the biggest being in Saudi Arabia, Iran, Qatar, UAE, Iraq,
Russia, Kuwait, Venezuela, Nigeria, Libya and Algeria, listed as ranked
in size. Only Russian company is not state owned in this list. The next
in line is Rosneft which is a state owned Russian company. The largest
private sector energy companies called the "supermajors" are
ExxonMobil, BP, Royal Dutch Shell, Total, Chevron and Conoco. Many of
these supermajors are accused of cartels and manipulating the political
decisions of the world as they are known to have the ability to seat and
unseat kings and presidents, have army generals and members of parliaments
on their pay roll and plot a coup de tat with the twitch of an eye. As
competition grows for an increasingly scarce but vital resource, the strategic
calculations of major and minor countries alike place more prominent emphasis
on the pumping, refining, transport and use of petroleum products. Maintaining
access to oil , in a fair or unfair way, continues to affect the political
decision making of governments around the world. "Petroleum Politics"
and "Petroleum Diplomacy" are important terms in the world politics.
All oil reserves in the world are typically owned by the governments of
the host country. The governments issue licenses and allocate concessions
to companies like ExxonMobil or Shell to explore, develop, produce and
market oil. As exploration involves many risks and huge investments, the
exploration companies typically form joint ventures and nominate one of
them as an operator to supervise the work.
8:15 pm, 11 December 2007
The road became wider, almost to 8 meters, with a fewer potholes, but
was not carpeted, making the sound of tires and ingress of dust in the
jeep to highest.
8:45 pm, 11 December 2007
We
passed the end of Sirte Oil Company's jurisdiction and were about to enter
WOC's jurisdiction or the concessions. We
passed a few rigs illuminated extensively.Omar
told me that the two rigs, one on the right and the other a few kilometers
away on the left were new on the road and were of Chinese Origin. A
few years ago, Chinese rigging equipment was considered inferior and no
one trisected their exploration or development efforts with Chinese equipment.
This trend had changed in recent years. I did not know if the reason in
this shift was the rising price of oil or advancement in the Chinese technology.
Today you could buy a 1000 - 1300 Horsepower Chinese rig off of the website
for a couple of million dollars complete with all mud pumping equipment
etc.
Oil is not new to mankind. There were oil pits near Babylon and asphalt
was used to construct roads and towers. Earliest known oil wells using
drill bits and bamboo poles were drilled in China in around 347 CE. In
7th century, petroleum was known as burning water in Japan and Chine and
used to evaporate brine and produce salt and light the evenings. 8th century
roads of Baghdad used tar. Petroleum was distilled by Persian chemist
al-Razi in the 9th century, producing chemicals such as kerosene in the
al-ambiq (alembic). In 10th century a bamboo pipeline network existed
to connect oil wells to salt springs in China. Oilfields of Baku containing
shiploads of naptha were described by the geographer Masudi in the 10th
century, and by Marco Polo in the 13th century.
The industry grew slowly in the 1800s, driven by the demand for kerosene
and oil lamps.The modern era of oil production began on August
27, 1859, when Edwin L. Drake drilled the first successful oil well 69
feet deep near Titusville in northwestern Pennsylvania. Just five years
earlier, the invention of the kerosene lamp had ignited intense demand
for oil. By drilling an oil well, Drake had hoped to meet the growing
demand for oil for lighting and industrial lubrication. Drake's success
inspired hundreds of small companies to explore for oil. In 1860, world
oil production reached 500,000 barrels; by the 1870s production soared
to 20 million barrels annually. In 1879, the first oil well was drilled
in California; and in 1887, in Texas. But as production boomed, prices
fell and oil industry profits declined. In 1882, John D. Rockefeller devised
a solution to the problem of unbridled competition in the oil fields:
the Standard Oil trust, which brought together forty of the nation's leading
refiners. Through its control of refining, Standard Oil (later ESSO and
now ExxonMobil) was temporarily able to control the price of oil. The
Royal Dutch/Shell Group of companies was created in February 1907 when
the Royal Dutch Petroleum Company (legal name in Dutch, N.V. Koninklijke
Nederlandsche Petroleum Maatschappij) and the "Shell" Transport
and Trading Company Ltd of the United Kingdom merged their operations
– a move largely driven by the need to compete globally with the
then monopolistic American oil company, Standard Oil. Even
until the mid-1950s, coal was still the world's foremost fuel, but oil
quickly took over. It became a major national concern in the early
part of the 20th century; the introduction of the internal combustion
engine provided a demand that has largely sustained the industry to this
day.
9:00 pm, 11 December 2007
I saw a glow of lights at a distance in the south when Omar turned westwards
on a branch road. The lights in the south were coming from Haqal Waha,
which is about 25km further. We had turned right for Samah and had about
120 more kilometers to travel. I was expecting a sandy track but the road
got better and better for the next 10 kilometers.
9:30 pm, 11 December 2007
There was a haqal on the south side of the road but I could not see the
name on the branch board as Omar was speeding at 140 kilometers an hour.
It happened all of a sudden when Omar Jammed his brakes as the carpeted
road ended with no warning and what we saw was kind of a roundabout in
the sand with few dirt tracks in five different directions.
9:36 pm, 11 December 2007
Omar got out of the jeep and started deflating tires. There was a sign
board that we had not seen earlier at one corner of the roundabout. It
was for a Turkish company called TPOC. I had never heard of this name
before. Someone had written NC189 on a nearby drum that was painted white
and red. I saw another drum with the same alphanumeric number on it. We
turned our jeep in the direction between the two oil drums/ barrels and
saw tow lines of red and white drums on both sides of a track. Omar claimed
that he knew the path between the drums would take us to Samah.
Omar was having fun driving in the sand and with deflated tires, he also
managed to perform some stunts. The tracks were not straight, and had
very sharp turns, for no obvious reason. In a wide desert with nothing
put space at hand people had made a million tracks in the sand, confusing
people like me, who were not aware of the general direction of the destination.
9:50 pm, 11 December 2007
We passed a small station with two very small, probably 500 barrel tanks
and a network of pipes, valves, manifolds and equipment fenced by a barbed
wire and poles. Some of these tanks can be as big as one million barrels.
Looking at few christmas trees in the area and huge network of piping
is overwhelming, makes me scared sometimes of the stuff running through
the pipes, highly inflammable, moving at high pressures, poisonous gases
that need to be burnt right away and the reactions taking place in those
huge separators. The earth contains mysterious stuff in its belly. Most
geologists view crude oil and natural gas as the product of compression
and heating of ancient organic materials over geological time of millions
of years. The biogenic theory says that oil is formed from the preserved
remains of prehistoric zooplankton and algae which have been settled to
the sea (or lake) bottom in large quantities under anoxic conditions.
Anoxic means in water depleted of oxygen. Zooplankton means drifting animals
that are either unicellular or multicellular. Over geological time this
organic matter got mixed with mud and got buried under heavy layers of
sediment. The resulting high levels of heat and pressure caused the organic
matter to chemically change into a waxy material known as kerogen and
the process is called diagenesis, which is found in various oil shales
around the world. Oil shale is also termed as immature oil. The biggest
reserve of immature oil is in Green River which is a tributary of Colorado
River. Extraction of Oil shale for usable hydrocarbon is still going through
evolution and is not economically feasible due to the comparatively lower
prices of relatively easily drillable mature of conventional oil.
At some places on the earth the kerogen got cooked naturally in a process
known as "cartagenesis" and formed the shape of liquid or gaseous
hydrocarbons, meaning the petroleum and natural gas - the mature oil.
Oil geologists speak of an "oil window," which has to happen
if oil is to be produced in the earth. Oil window is at a depth of 4 -
6 kilometers and actually refers to a temperature range at these depths
that oil forms in. Below the window's minimum temperature or the depth,
the oil remains trapped in the form of kerogen, within the window it cracks
into oil and above the maximum temperature the oil cracks into natural
gas. Because most hydrocarbons are lighter than rock or water, these often
migrate upward or sideways or downwards through adjacent rock layers until
they either reach the surface or become trapped beneath impermeable rocks.
These trapped hydrocarbon reservoirs are called oilfields.
The pressure generated from cracking is so much that the oil begins migrating
to upper strata and some one from Chevron or Shell or ExxonMobil or Petro
Canada notices it using a gravity survey or magnetic survey to detect
large scale features of the sub-surface geology. Features of interest
(known as leads) are subjected to more detailed seismic surveys which
work on the principle of the time it takes for reflected sound waves to
travel through matter (rock) of varying densities and using the process
of "depth conversion" to create a profile of the substructure.
Finally, when a prospect has been identified and evaluated and passes
the oil company's selection criteria, an exploration well is drilled in
an attempt to conclusively determine the presence or absence of oil or
gas. Typical Shallow shelf oil wells (e.g. North sea) cost $10 - 30 Million,
while deep water wells can cost up to $100 Million plus. Hundreds of smaller
companies search for onshore hydrocarbon deposits worldwide, with some
wells costing as little as $500,000 USD.
Interestingly, it is believed that a vast majority of oil that the earth
produced millions of years ago has long ago escaped to the surface due
to upward migration and been biodegraded by oil-eating bacteria. It is
still escaping as obvious from oil seeps, natural gas seeps, pockmarks
(underwater craters caused by escaping gas). The Oil companies are actually
looking for the small fraction that has been trapped by this rare combination
of circumstances. A good example is the Oil sands or Tar sands of Athabasca
also called the bitumen oil in Alberta Canada, which are reservoirs of
partially biodegraded oil still in the process of escaping, but contain
so much migrating oil that, although most of it has escaped, vast amounts
are still present. The oil available is much more than can be found in
conventional oil reservoirs/ oilfields being pumped.
The cost of a barrel of oil extracted from the shale ranges from as high
as US$95 per barrel to as low US$12 per barrel. However it would be prudent
to think that costs would be inline with those of the Tar sands and so
an oil price in the US$30-40 per barrel range would be considered realistic
for them to be profitable. The industry is proceeding cautiously, due
to the losses occurred during the last major investment into oil shale
in the early 1980s, when a subsequent collapse in the oil price left the
projects uneconomic and the companies incurred large losses.
I asked Omar to enter the station, a probable sign of life after around
2 hours of driving, so that we could ask someone about Samah. We found
someone in the control room and he showed a general direction to Omar
in Arabic Language. Soon a Philippinos guy drove in the station on a red
Dodge Durango and I asked him about Samah in English language. We still
had about 25 more kilometers to go.
10:15 pm, 11 December 2007
We were crossing an air strip and we could see three clusters of lights
in the dark. I asked Omar to head towards the biggest cluster, knowing
that the main station of an oilfield should have the largest number of
lights.
There are many scientists who oppose the biological connection between
fossils and petroleum, emphasizing that laws of thermodynamics prohibit
such evolution. This abiogenic theory was founded by Nikolai Alexandrovich
Kudryavtsev a Russian petroleum geologist who stated that petroleum is
formed from non-biological sources of hydrocarbons located deep in the
Earth's crust and mantle. He also pointed out that oil pools in
sedimentary strata are often related to fractures in the basement directly
below. This is evidenced by the Ghawar supergiant oil field (Saudi Arabia);
the Panhandle Field in Kansas (United States), which also produces helium;
the Tengiz Field (Kazakhstan); the White Tiger Field (Vietnam); and innumerable
others. He argued that no petroleum resembling the chemical composition
of natural crudes has ever been made from plant material in the laboratory
under conditions resembling those in nature. Nikolai suffered from political
repressions during Stalin’s regime for his unorthodox thinking,
spending several years in GULAG camps in the Transpolar European Russia
as “enemy of the people”. After that, he was prohibited from
living or staying in central cities of USSR.
Omar was different
from many Libyans I had known so far. He did not smoke, did not like fizzy
drinks and was a very careful driver. He spoke very little English and
I knew only a few words of Arabic. Most of my needs were conveyed in a
mixture of 80% english, 1% arabic and 19% gestures. Sometimes, due to
the darkness in the jeep, and Omar concentrating on driving meant my gestures
were not seen. Driving in desert, with tracks going in all directions,
but the destination in view, means you make your own tracks, and that
we did, when we arrived at the gates of Samah Oilfields main station at
10:30 pm, 11 December 2007.