I'm going to provide a summary of the oil business. But before I get into that, I want to provide a very rudimentary summary of some of the basics of oil and how oil is found in the ground. So all petroleum is a compound of hydrogen and carbon atoms, formed when organic matter spends lots, and lots, and lost of time subject to high temperatures. So that's what turns organic matter over geologic time in to petroleum. But as important as it is to understand what petroleum is, it's at least as important to understand the nature of the formations where it's found. So there are a few basic concepts you need to to understand porosity permeability, and then trapping. Porosity, refers to the open space between the g, the grains in a particular, in a particular formation. Okay? So this is, let's say in this image here, we have sand. And there's actually some spaces in between the sand. That can be occupied by gasses of fluids, okay? So just think about for instance if you have a sandstone. Or, if you just have a cup of sand, you actually can pour some water in there and it actually just absorbs down into the sand, that, it's not that the sand grains themselves are like little sponges, it's because there's a lot of pore space in there, a lot of void space inside that cup of sand. Okay, that's one thing that makes, the sandstone, which is a typical type reservoir rock, or any petroleum bearing formation, what makes it distinct from a, a formation that wouldn't hold petroleum. You know, there's really within an en, elemental piece of volume of this. This other type of stone we have indicated as mudstone, or you could think of it as a shale or something like that. There's really no void space in there, so that's one distinctive aspect. Another one is permeability, that the, the s, whatever is in the void space here is able to move, through this void space, okay? That is not the case, typically, inside of something like you know, any kind of less porous but importantly less permeable piece of, of earth like the mudstone indicated here. So what will happen over time is that you will have this, this petroleum that was basically what organic matter turned into after it was cooked over a long period of time, and that's in the ground with water and some of that might be gasses, and these things, just like if you shook up a, a bottle of salad dressing, the oil is lighter than the water or the vinegar, so the oil wants to move up, and the oil, the water wants to move down. And, and basically these fluids will kind of flow. Through the permeable formation and the porous formation and they'll flow until they find a, a spot where this impermeable layer, right here, it may have been deflected through some kind of geologic event. Okay. So it may, it may actually have a high point and if the, the oil flows, bubbles up through the water to that high point it is, it gets trapped. So, what is important to understand about this reservoir, this is what we call the reservoir, the place where the petroleum is contained. It has to be porous to contain any volume of something we're looking for. Has to be permeable, to allow it to move. And it has to, have some kind of trapping mechanism. In this case, you have what's called an, an anticline that the oil got trapped under so it's, it's up against this relatively impermeable cap rock, okay. So that's some of the very basic geology and chemistry of oil. I don't think it could be more basic. [BLANK_AUDIO]
