Energy SFW Oil Gas Extraction (September 2008)

Skills for Work:
Energy
Intermediate 2
Oil/Gas Extraction
Support Material
September 2008
Energy: Oil/Gas Extraction – (Intermediate 2)
Acknowledgements
SFEU is grateful to the subject specialists in Scotland’s Colleges and other
agencies and industry bodies who have been involved in the writing of this and
other support materials in the Skills for Work series. SFEU is also grateful for the
contribution of the Scottish Qualifications Authority in the compilation of these
materials, specifically for its permission to reproduce extracts from Course and
Unit Specifications and the Skills for Work Rationale.
We are also grateful to the following for permission to use images, website
materials and sustainability reports for 2006 and 2007:
“Oil & Gas UK Sustainability Reports for 2006 and 2007”
are reproduced by kind permission of Oil & Gas UK
The full report can be viewed at:
http://www.ukooa.co.uk/issues/sustainability/introduction.cfm
Oil and Gas UK
http://www.ukooa.co.uk/
“Oil & Gas UK is the leading representative organisation for the UK offshore oil
and gas industry. Its members are companies licensed by the Government to
explore for and produce oil and gas in UK waters and those who form any part of
the industry's supply chain.”
© Scottish Further Education Unit 2008
SFEU is a Registered Scottish Charity No. SC021876 and a

Company Limited by Guarantee No. SC143514 VAT No. 617148346
These support materials were produced with assistance from the European Social Fund.
Scottish Further Education Unit 3


Energy (Intermediate 2)
Energy: Oil/Gas Extraction
F3FW 11
Introduction
These notes are provided to support teachers and lecturers presenting the
Scottish Qualifications Authority Course F3FW 11, Energy: Oil/Gas Extraction
(Intermediate 2).
Copyright for this pack is held by the Scottish Further Education Unit (SFEU).
However, teachers and lecturers have permission to use the pack and reproduce
items from the pack provided that this is to support teaching and learning
processes and that no profit is made from such use. If reproduced in part, the
source should be acknowledged.
Enquiries relating to this support pack or issues relating to copyright should be

addressed to:
Marketing Officer - Communications

The Scottish Further Education Unit
Argyll Court
Castle Business Park
Stirling
FK9 4TY
Website: www.sfeu.ac.uk
Further information regarding this Unit including Unit Specifications, National

Assessment Bank materials, Centre Approval and certification can be obtained
from:
The Scottish Qualifications Authority

Optima Building
58 Robertson Street
Glasgow
G2 8DQ
Website: www.sqa.org.uk

Class Sets
Class sets of this pack may be purchased direct from the printer. Costs are
dependent on the size of the pack and the number of copies. Please contact:
Elanders Hindson
Merlin Way
New York Business Park
North Tyneside
NE27 0QG
Tel: 0191 280 0400

e-mail: info@elandershindson.co.uk
Disclaimer
Whilst every effort has been made to ensure the accuracy of this support pack,
teachers and lecturers should satisfy themselves that the information passed to
candidates is accurate and in accordance with the current SQA arrangements
documents. SFEU will accept no responsibility for any consequences deriving
either directly or indirectly from the use of this pack.

Contents
How to Use this Pack 8
Reference Section 9
What are Skills for Work Courses all about? 10
The Course in Energy (Intermediate 2) 13
Unit Outcomes, PCs and Evidence Requirements 16
Employability Skills Profile 19
Careers Scotland Support 20
Tutor Support Section 21

Learning and Teaching with Under 16s 22
Guidance on Unit Delivery 26
Unit Induction 26
Learning and Teaching Approach 26
Resources 28
Signposting of Employability Skills 31
Generating Evidence and Assessment Opportunities for Employability Skills 32
Student Support Section 37

Welcome to Energy: Oil/Gas Extraction 38
Oil Reservoirs and Oil Wells 40
Getting the oil out 41
Glossary of Terms 44
Appendix 46

How to Use this Pack

None of the material in this pack is mandatory. Rather, it is intended as a guide
and an aid to delivery of the Unit and aims to provide centres with a flexible set of
materials and activities which can be selected, adapted and used in whatever way
suits individual circumstances. It may also be a useful supplement to tried and
tested materials that you have developed yourself. The pack is available on the
SFEU website in Word format to enable you to customise it to suit your own
needs.
The pack is organised into several sections:
The Reference Section provides information on the rationale for, and ethos
behind, Skills for Work courses, the course rationale, the Unit Outcomes and
evidence requirements and the Employability Skills Profile for Energy
(Intermediate 2), showing where the specified employability skills and attitudes
can be evidenced and assessed throughout the Course and in this unit.
The Tutor Support Section contains advice on learning and teaching with under-
16s, guidance on unit induction, unit delivery and advice on integrating the
development of employability skills throughout the unit. Industrial visits and input
from external industry experts would help enhance the teaching process. Finally,
this section suggests resources which may be useful for tutors and students.
The Student Support Section contains a brief introduction to the Unit and
information on the student centred approach to the investigation. Specific notes on
oil/gas extraction are not included in this pack because it is expected that the
students will research and investigate the topics themselves. However, industry
specific websites containing excellent materials which you may choose to flag up
to students are suggested in the Tutor Support section. These are complemented
by oil industry printed publications which also cover the subject matter. Internet
access will be required to complete this unit.
The investigation brief and worksheets are contained in the NAB for the Unit.

Reference Section

What are Skills for Work Courses all about?
Skills for Work Courses are designed to help candidates to develop:

• skills and knowledge in a broad vocational area
• Core Skills
• an understanding of the workplace
• positive attitudes to learning
• skills and attitudes for employability.
A key feature of these Courses is the emphasis on experiential learning. This

means learning through practical experience and learning by reflecting on
experience.
Learning through practical experience

Teaching/learning programmes should include some or all of the following:
• learning in real or simulated workplace settings
• learning through role play activities in vocational contexts
• carrying out case study work
• planning and carrying out practical tasks and assignments.
Learning through reflecting at all stages of the experience
Teaching/learning programmes should include some or all of the following:

• preparing and planning for the experience
• taking stock throughout the experience - reviewing and adapting as necessary
• reflecting after the activity has been completed - evaluating, self-assessing and
identifying learning points.
The Skills for Work Courses are also designed to provide candidates with
opportunities for developing Core Skills and enhancing skills and attitudes for
employability.

Core Skills
The five Core Skills are:
• Communication
• Numeracy
• Information Technology
• Problem Solving
• Working with Others
Employability
The skills and attitudes for employability, including self-employment, are outlined
below:
• generic skills/attitudes valued by employers
• understanding of the workplace and the employee’s responsibilities, for
example timekeeping, appearance, customer care
• self-evaluation skills
• positive attitude to learning
• flexible approaches to solving problems
• adaptability and positive attitude to change
• confidence to set goals, reflect and learn from experience.
• specific vocational skills/knowledge
• Course Specifications highlight the links to National Occupational
Standards in the vocational area and identify progression opportunities
Opportunities for developing these skills and attitudes are highlighted in each of
the Course and Unit Specifications. These opportunities include giving young
people direct access to workplace experiences or, through partnership
arrangements, providing different learning environments and experiences which
simulate aspects of the workplace. These experiences might include visits, visiting
speakers, role play and other practical activities.

A Curriculum for Excellence (Scottish Executive 2004) identifies aspirations for

every young person. These are that they should become:
• successful learners
• confident individuals
• responsible citizens
• effective contributors.
The learning environments, the focus on experiential learning and the

opportunities to develop employability and Core Skills in these Courses contribute
to meeting these aspirations.

The Course in Energy (Intermediate 2)

Course Rationale
This Course is intended to equip candidates with the necessary knowledge and
skills which will enhance their prospects for employment in the wide range of
opportunities within energy sectors. The Course will allow candidates to develop a
range of employability skills which are of particular relevance to energy industries.
Core Skills of Information Technology and Problem Solving will also be developed
throughout the Course where opportunities arise. The Course will offer a variety of
approaches to learning and teaching and will include a strong element of
experiential learning. It is intended that some of the Course will be delivered and
assessed in a different learning environment to that of the school through a
partnership arrangement with a college, training provider, or employer.
There are many technologies used in the production of energy and this course
has been designed to contain both an electrical generation practical/skills element
using wind turbines and a heat generation practical/skills element using solar
panels. These elements were selected to ensure candidates received a range of
skills using different technologies that are involved in the generation of energy.
Other systems used to generate energy from both the traditional/conventional and
renewable systems will be discussed and evaluated during the Course.
The primary target group for this Course is school candidates in S3 and S4.
However, the Course is also suitable for S5/S6 candidates and adult candidates
who are seeking to enhance their employability and vocational skills in the energy
sector.
The general aims of the Course are to:
• widen participation in vocationally-related learning for 14–16 year olds

• allow candidates to experience vocationally-related learning
• provide candidates with a broad introduction to the energy sector
• allow candidates the opportunity to develop skills relevant to the micro-
generation energy sector
• develop the candidates’ engineering skills
• encourage candidates to evaluate the impact of energy generation on the
environment
• encourage candidates to foster a good work ethic, including timekeeping, a
positive attitude and other relevant employability skills
• provide opportunities to develop a range of Core Skills in a realistic context
• encourage candidates to take charge of their own learning and development
• provide a range of teaching, learning, and assessment styles to motivate
candidates to achieve their full potential

• facilitate progression to further education and/or training
In particular, the specific aims of the Course are to:

• encourage candidates to consider a career in the energy sector
• develop an awareness of the role of conventional and renewable energy
systems in the UK
• develop an awareness of what opportunities there may be within the sector in
terms of the types and range of career options
• provide candidates with knowledge and skills which are directly relevant to
employment within the energy sector, eg. solar hot water and wind turbines
• provide opportunities for the personal development of skills and attitudes which
will improve the candidates’ employment potential within the energy sector
• develop the candidates’ awareness of their individual strengths and
weaknesses in relation to the requirements of the sector, and to reflect on how
this affects their employability potential
• raise awareness of the impact of the energy sector on the environment
• raise awareness of the responsibilities of the energy industry with regard to the
environment
Rationale for Course content
The production and use of energy is important in everyone’s life and is also an
important area of study and work. It is central to how we reduce our impact on the
environment when generating heat or electrical energy or power and to reducing
our CO2 emissions which are widely claimed to have an impact on climate change.
The generation of energy has traditionally been done through the use of fossil
fuels; oil, gas, and coal, with some renewable energy produced from hydro power.
Nuclear power was seen, and is still seen by some, as a method of generating
energy with zero carbon emissions, but the disposal of the radioactive spent fuel
is of major concern and this can counteract the advantages it has with zero
carbon emissions.
The development of most renewable energy systems is a recent innovation where

energy is generated from renewable energy sources, eg. wind, solar, geothermal,
bio-fuels, tidal, and wave. These systems have the advantage of generating
power with virtually zero carbon emissions. The bio-fuels and geothermal systems
can release power on demand, but most of the others depend of sources of
energy outwith the control of human beings, and consequently, do not have a
constant power output. For example, solar is not effective at night or when it is
particularly cold and cloudy; wind is not effective at low wind speeds or very high
wind speeds, and while tides are regular, they occur only a few times per week
and wind is required to generate waves in our oceans or seas.

The main themes of the course are: conventional energy production, renewable
energy production, converting energy from one form to another, industrial or
domestic energy generation facilities, practical work with solar panels and wind
turbines (integrating team work into the assembly process), and investigating
careers within the energy sector.
Optional areas covered are the size of an individual’s carbon footprint, oil and gas
extraction or conventional energy systems; their contribution to the total energy
generated in the UK and their environmental effects.
Candidates will study the overall status of energy in Scotland, and in the UK, in
general. They will explore the conventional methods of production, including their
efficiency levels, various energy conversion principles, and how energy can be
conserved. They will also explore the more recent developments in energy
production using renewable energy techniques and will develop practical skills in
the areas of plumbing, electrical, and mechanical engineering. Careers within the
energy sector have been integrated with employability skills which are developed
through practical activities.
The three optional Units offer different routes for candidates. They can opt for an
individual investigation and evaluation of their own carbon footprint, investigate
the size of the market segment taken up with conventional production techniques
and their sustainability, and explore the use of the national grid as a means of
transmitting electricity throughout the UK, or have an in-depth study into the
formation and extraction of one type of fuel in its raw state which is particularly
relevant to Scotland, ie. offshore oil and gas.

Unit Outcomes, PCs and Evidence Requirements

National Unit Specification: statement of standards
Unit:
Energy: Oil/Gas Extraction (Intermediate 2)
Acceptable performance in this Unit will be the satisfactory achievement of the

standards set out in this part of the Unit Specification. All sections of the statement
of standards are mandatory and cannot be altered without reference to the
Scottish Qualifications Authority.
Outcome 1
Investigate and determine the formation and sustainability of oil and gas fields to a
given brief.
Performance Criteria
a) Gather relevant information from a variety of sources according to the given

brief.
b) Gather information on the formation and geological structure of oil and gas
fields.
c) Gather information on the sustainability of offshore oil and gas production.
d) Organise information gathered to produce clear summary information of the
formation of oil and gas fields and an evaluation of its sustainability.
e) Check that all steps have been completed in accordance with the given brief,
including completing the work to the agreed timescale.
Outcome 2
Investigate offshore oil and gas installations and extraction in accordance with a
given brief.
a) Gather relevant information from a variety of sources according to the given

brief.
b) Gather information on the purpose and the layout of platforms/rigs.
c) Gather information on the equipment and methods used in extracting oil and
gas.
d) Organise information gathered to produce clear summaries on oil and gas
platforms/rigs and extraction, equipment, and methods.
e) Check that all steps have been completed in accordance with the given brief,
including completing the work to the agreed timescale.

Outcome 3
Present findings on formation, extraction, platform types, and fluid control of oil
and gas from offshore installations.
a) Present clear summary information on the formation and structure of oil/gas

fields.
b) Present clear summary information on platforms used on offshore installations.
c) Present clear summary information on the extraction of oil/gas.
d) Present clear summary information on the sustainability of oil/gas fields in the
UK.
Evidence Requirements for this Unit
Evidence is required to demonstrate the candidates have achieved all Outcomes

and Performance Criteria.
Performance and product evidence is required for this Unit. The evidence should
be gathered at appropriate points throughout the Unit, in open-book conditions, in
response to a given brief.
Performance and product evidence
Candidates will carry out an individual investigation according to the instructions in

a given brief which covers all Outcomes and Performance Criteria. Findings will
be gathered in a folio which the assessor will discuss with the candidate to check
that all steps have been carried out as specified. The assessor will then complete
and retain a checklist for each candidate as evidence that all steps have been
carried out as specified in the brief.
Product evidence
Each candidate will produce a presentation which meets the Performance Criteria
in Outcome 3. The method of communication in the presentation may be chosen
by the candidate - written/oral, diagrammatic, graphical, and electronic - are all
acceptable. The candidate may also choose different forms of communication -
poster, leaflet, short talk, PowerPoint presentation - are all acceptable provided
the Performance Criteria are met.
An assessor checklist identifying the critical aspects of the presentation regardless

of form should be completed and retained for each candidate. The critical aspects
are:

• summary information must be clear

• summary information must cover both the formation and structure of oil/gas
fields
• summary information must cover the purpose of oil/gas platforms, including
mobile and fixed platforms
• summary information must cover the equipment used in drilling and natural
and forced extraction methods
• impact of the sustainability of oil/gas extraction in the UK
The National Assessment Bank (NAB) item for this Unit contains an appropriate
brief which covers the investigation and presentation requirements of the Unit and
an assessor observation checklist. Centres wishing to devise their own
assessments must refer to the NAB to ensure a comparable standard.
NB Centres must refer to the full Unit Specification for detailed

information related to this Unit.

Employability Skills Profile

In addition to the specific vocational skills developed and assessed in this Course,
employability skills are addressed as detailed in the table below. For the purposes
of the table, the Units are referred to as A, B, C and D as indicated.
Mandatory Units
Energy: Introduction =A
Energy: Domestic Solar Hot Water Systems =B
Energy: Domestic Wind Turbine Systems =C
Energy: Employability and Careers =D
Optional Units
Energy and the Individual =E
Energy: Oil/Gas Extraction =F
Energy: Conventional Production Technologies and the Grid =G
Employability skill/attitude Evidence
• maintaining good timekeeping and attendance A, B, C, D, E/F/G
• maintaining a tidy work place B, C
• seeking feedback and advice A, B, C, D, E/F/G
• following instructions B, C
• working co-operatively with others A, B, C
• selecting and using tools correctly and for the purpose B, C
they were designed
• using Personal Protective Equipment correctly and A, B, C
working safely
• following basic drawings correctly B, C
• checking quality of work A, B, C, D, E/F/G
• working to agreed deadlines A, B, C, D, E/F/G
• organising work effectively A, B, C, D, E/F/G
• working confidently A, B, C, D, E/F/G
• willingness to learn new skills or techniques B, C
• working independently A, B, C, D, E/F/G
• reflecting on own performance B, C
• learning from past experiences B, C
• awareness of a range of careers and job roles D
• developing investigation skills A, D, E/F/G
• developing presentation skills A, B, C, D, E/F/G
• developing creativity skills A, B, C, D, E/F/G

Careers Scotland Support

for School/College Collaboration for Scotland’s Colleges in
the Scottish Enterprise area
Since August 2006 Careers Scotland (SE and HI areas) has been funded by the
Scottish Government to support College/School Collaboration and encourage and
promote vocational educational choices for pupils in schools.
Careers Scotland (now part of Skills Development Scotland) has an important role
to play in selection, recruitment and pre-entry career guidance, as well as ongoing
support and pre-exit career guidance, to ensure the pupils’ experience of SfW is
capitalised upon in any future career planning.
Careers Scotland activity takes place locally and nationally under 4 objectives:
• Providing careers advice, guidance and employability support to pupils and

their parents pre, during and post vocational education experience, focusing
primarily but not exclusively on SfW pupils - demonstrating how these
educational choices have implications for future career options, and support
the achievement of future career goals and supporting effective transitions
• Providing targeted support to pupils at risk of becoming unemployed who
would benefit from undertaking a vocational course
• Partnership working to ensure vocational study is given parity of esteem with
other school and post school options, focusing on recruitment / selection and
retention of pupils on vocational courses
• Capacity building through relevant shared CPD events and resource
development to increase understanding of the process of uptake of vocational
options and facilitate more effective support to pupils navigating these options
For further information on Careers Scotland (SE)’s involvement in school/college

collaboration locally, please get in touch with your Careers Scotland Regional
contact:
South East (Edinburgh & Lothians; Forth Valley; Borders)

Stephen Benwell 01786 452043 stephen.benwell@careers-scotland.org.uk
North East (Tayside; Grampian; Fife)

Val Ormiston 01592-631155 valerie.ormiston@careers-scotland.org.uk
South West (Dumfries & Galloway; Ayrshire; Lanarkshire)

Jean Geddes 01698 742192 jean.geddes@careers-scotland.org.uk
West (Glasgow; Dunbartonshire; Renfrewshire)

Sandra Cheyne 0141 242 8338 sandra.cheyne@careers-scotland.org.uk

Tutor Support Section

Learning and Teaching with Under 16s

Scotland’s Colleges have made significant progress in meeting the needs of
young learners. Our knowledge of the learning process has increased significantly
and provides a range of strategies and approaches which gives us a clear steer
on how lecturers can add to their skill repertoire. Lecturers can, and do, provide a
stable learning environment where young students develop a sense of self-
respect, learn from appropriate role models and see an opportunity to progress.
There are basic enabling skills for practical application which can further develop
the learning process for this group of students. So what are the characteristics of
effective learning and teaching which will help to engage young learners?
Ten ways to improve the learning process for under 16s

(This list is not exhaustive!)
1. Activate prior knowledge and learning – ascertain what the learner knows
already and teach accordingly. Young people do have life experience but it is
more limited than adult learners and they may not always be aware of how it
will assist them in their current learning.
Tips - Question and answer; Quick Quiz; Quick diagnostic assessment on

computer; present key words from the course or unit and see how many they
recognise or know something about.
2. Tune learners into the Big Picture – the tutor knows the curriculum inside
out and why each lesson follows a sequence, however the young learner does
not have this information and is re-assured by being given the Big Picture.
Tips – Mind map or concept map; use visuals, for example wall displays of
diagrams, photographs, flow charts; explain the learning outcomes in language
they will understand; We Are Learning Today (WALT) targets and What I’m
Looking For (WILF) targets; give clear and visible success criteria for tasks.
3. Use Advance Organisers – these are lists of the key concept words that are
part of the course or unit.
Tip – Highlight on any text the concept words that you will be using; make a
visible list and put it on display – concept words can be struck off or referred to
as they occur (NB this helps with spelling and independent learning as they do
not have to keep checking meaning); highlight essential learning and action
points.
4. Vary the teaching approaches. The two main approaches are instructing
and demonstrating, however try to provide opportunities to facilitate learning.
Tips – Ask students what they know now that they did not know before, or
what they can do now they could not do before, at appropriate points in the
lesson or teaching block; ensure there are problem solving activities that can
be done individually or in groups; ask students to demonstrate what they have

learned; use a range of question and answer techniques that allow

participation and dialogue, eg. provide hints and cues so that they can arrive at
answers themselves.
5. Preview and review of learning. This helps to embed previous learning and
listening skills and provides another opportunity to elicit learner understanding.
Consolidates and reinforces learning.
Tips – At the beginning of each lesson, or session, review previous learning

and preview what is coming up; at the end of each lesson or session, review
what has taken place and what will be focussed on next time – these can both
be done through question and answer, quizzes and mind mapping activities.
6. Language in the learning environment. Do not assume that the language

which is used in the learning environment is always understood by young
learners, some words may be familiar but do not have the same meaning
when used vocationally.
Tips - At appropriate points ask students what words mean; explore the
various meanings of words to find out if they may have come across this
language in another context; by looking at the structure and meaning of words
there is an opportunity for dialogue about learning and to build vocabulary.
7. Giving instructions in the learning environment. This is one of the most

difficult tasks a tutor has to do whatever the curriculum area. With young
learners this may have to be repeated several times.
Tips – Ask a student to repeat back what you have asked them to do before
beginning a task; ask them to explain the task to one of their peers; use the
KISS principle – Keep It Short and Simple so that they can absorb and process
the information.
8. Effective feedback. Feedback is very important for the learner to assess their
progress and to see how and what they can improve. Provide opportunities to
engage in dialogue about the learning function of assessment – provide details
of the learner’s strengths and development needs either in written or spoken
form. With younger learners identifying one or two areas for development is
sufficient along with acknowledgement of what has been done well.
Essentially, learners are helped by being given a specific explanation of how

work can be improved. You can also use summative assessment formatively,
ie. as an opportunity to identify strengths, development needs and how to
improve.
Tips – Ask students themselves to identify their own strengths and

development needs – self evaluation; peer evaluation of work can be
successful once they have been taught how to do it; the tutor can produce a
piece of work and ask students to assess it anonymously; have a discussion
about the success criteria for the task and ensure the students are clear about

them; allow learners to set criteria for success and then measure their
achievements against these.
9. Managing the learning behaviour. Under 16s are coming into Scotland’s
Colleges and training establishments from largely structured and routine-driven
environments in schools and early feedback from those undertaking Skills for
Work courses indicates that they very much enjoy the different learning
environment that colleges and other training providers offer. Remember
though that these are still young learners. They will still expect tutors to
provide structure and routine, and will perform best in a calm, orderly learning
environment. Young students will respond to firm, fair, and consistent
management. Such routines have to be established quickly and constantly
reinforced.
Tips - Health and safety is non-negotiable and consequences of non-

compliance with the regulations should be made clear and adhered to at all
times; set out your expectations from day one and provide a consistent
message; have clear beginnings, middles and endings for each session; be a
positive role model for your students, ie. be there before they are and manage
the learners with respect; always deliver what you promise; build up good
relationships and get to know the learners, make the curriculum interesting and
stress the relevance of the learning; set up a positive behaviour management
system. By following these guidelines you will build up two-way respect,
which, while sometimes challenging to achieve, can be very powerful and work
to everyone’s benefit.
10. Care and welfare issues. School/college partnerships mean increasing

numbers of young learners in college. Tutors have to be aware of their
professional responsibilities and mindful of young people’s rights. However
tutors have rights too, in terms of feeling safe and secure in working with
young people and there are basic steps staff can take to minimise risks. It is
essential that colleges ensure that tutors have a working knowledge of the
Child Protection policies (local authority and college documentation) and follow
procedures and policies diligently. School/College Liaison Officers will be
familiar with these documents and can provide support and advice. There are
also training sessions on Child Protection available from SFEU (see the
following page).
Tips - Avoid one-to-one situations with young students in a closed area; do not
do or say anything that could be misinterpreted; if the opportunity arises, do
some observation in schools to see and discuss how teachers use the
guidelines for their own protection as well as the young person’s.
Most young people are a delight to work with and they will positively enjoy the
experience of learning in college. However, there will inevitably be some who are
disengaged, disaffected and who have not yet had an opportunity to experience
success. ‘Skills for Work’ is a unique educational initiative that young people can
be motivated to buy into – you as the tutor are key to the success of these
programmes.

Skills for Work Workshops

To take this 10 point plan forward and to add to it, you can attend one of SFEU’s
‘Get Skilled Up’ half day workshops for tutors delivering Skills for Work Courses,
when we explore further the learning process and look at a range of specific
teaching and learning techniques to use with the under 16 age group. To find out
when the next event is visit our website www.sfeu.ac.uk or contact the Learning
Process team at SFEU on 01786 892000.
Child Protection Workshops

These are run on a regular basis by staff at SFEU in Stirling and also in colleges.
For more information on these workshops please contact members of the Access
and Inclusion team at www.sfeu.ac.uk or contact the team at SFEU on 01786
892000.

Guidance on Unit Delivery

This unit introduces the student to the oil and gas industry. It is an investigation
based unit, where the student is given a set of specific questions about the oil
industry to investigate, and then present their findings to the class. When teaching
this unit, it is intended that the British oil and gas industries be the focus.
Unit Induction
An induction session in week 1 will prepare students well for the unit and help to
clarify aims and expectations, what the unit is all about and any uncertainties they
may have about the unit and how it will be delivered. It’s particularly important that
they understand that the main learning approach will be student-centred, and what
this means in terms of the investigation, organisation and presentation skills they
will need to use. Induction may include the following:
• an outline of the Unit content – what they’re going to be doing

• how it fits in to the Energy (Intermediate 2 level) course
• your plans for delivering the Unit – in this case, student centred investigation
with tutor guidance and support.
• assessment methods and schedule
• where employability fits in – start by asking them what they think!
• the importance of regular attendance and good timekeeping to encourage the
students to get into good habits – as if they were at work and in employment!
• you might also think about a site visit or invite a representative from the oil/gas
industry to set the scene, and talk about the types of employment available in
their organisation, and to reinforce the value that employers put on
employability skills.
Learning and Teaching Approach

This is an investigation based unit and the approach will be student centred. After
some initial input from the tutor to set the scene, the students should work
independently to sources, organise and present the information required in the
investigation brief. Tutor support and guidance will be ongoing as required.
Students will need to be given guidelines on how to approach the work in terms of
organising their time to ensure that all stages of the investigation are covered. It
would be helpful to work with the group to negotiate target dates for each stage of
the investigation and to monitor progress throughout. This student centred
approach will add value to the students’ learning experience by helping develop
the following key employability skills as well as enhancing their knowledge of the
oil/gas industry:

• maintaining good timekeeping and attendance

• seeking feedback and advice
• checking quality of work
• working to agreed deadlines
• organising work effectively
• working confidently
• working independently
• developing investigation skills
• developing presentation skills
• developing creativity skills
As this is an investigation based unit, specific notes for the students are not
included in this support pack. However the oil industry publications and websites
suggested cover all required knowledge and are of a very high standard.
Appendix 1 contains an extract from ‘Oil & Gas UK Sustainability Reports for 2006
and 2007’, (Source: UK Oil and Gas).
The NAB for this Unit includes a set of worksheets to help the students focus on
the Outcome requirements, organise their investigation and structure the
presentation of their work. The NAB also contains a set of checklists for the tutor
to keep track of student progress.
On the following pages a range of online resources are identified that will help
students particularly in the investigation element in Outcomes 1, 2 and 3 and it
would be appropriate to allocate class time in a flexible learning environment eg. a
dedicated IT room. The online research activities will provide students with a more
blended approach to teaching and learning. School students will be familiar with
this approach. For students returning to study, you may need to spend time
supporting them in the use of electronic resources.
Guidance on carrying out investigations and presenting findings are included in

the Energy (Intermediate 2) Course Guidance Pack.

Resources
It is essential that computers are available for

delivery of this unit as students will require
Internet access to carry out their investigations.
There are a great many free online resources produced by the industry which
tutors can use for background information and students can use in their
investigations.
The technical aspects of the unit are relatively easy to find online and the given
links to the Oil and Gas UK website alone covers all of this.
The economic data can be harder to find. A link to the Oil and Gas UK website
Sustainability Report is included to help here:
http://www.ukooa.co.uk/issues/sustainability/2007/main/index.cfm
This website is continually updated, and will contain the current economic data
required for this unit.
There are many other excellent online resources, such as How Stuff Works and
Wikipedia. If using the latter, students should be aware that they shouldn’t accept
everything on it as irrefutable fact and they should check that the information
given is correct. If a source for a specific part of a learning outcome is required,
available resources are listed in the Student Support Section of this unit.
A highly recommended source of information is the ‘UK Oil & Gas’ website. It has
an excellent education section which covers all the technical aspects required eg.
on crude oil formation and extraction, drilling and many other related topics. The
site goes into great detail, and is an excellent research tool. The online
publication ‘Britain’s Oil and Gas’ can be found in the education section of the
website shown below:

http://www.oilandgasuk.co.uk
This is a very comprehensive resource but it is not all required. The geology
section is particularly detailed and contains much more than we need here.
There are many other excellent online resources provided by the industry and
others. It is intended that students will use these when completing their
investigations. A suggested list is given below although students should be
encouraged to find - and share - other good online resources.
Oil & Gas UK
Oil & Gas UK website

Sustainability
http://www.ukooa.co.uk/issues/sustainability/introduction.cfm
Education
http://www.ukooa.co.uk/education/index.cfm
Story of Oil
http://www.ukooa.co.uk/education/storyofoil/index.cfm
Sustainability 2007 report


Drilling Websites
Oil Well information from Wikipedia

http://en.wikipedia.org/wiki/Oil_well
YouTube: Oil Drill Animation

http://www.youtube.com/watch?v=fl8L4qSqSqE&feature=related
The Boom: How do you Drill an Oil Well?

http://library.thinkquest.org/J0112442/drill.html
Offshore Oil Drilling (Australian Institute of Petroleum)

http://earthsci.org/mineral/energy/gasexpl/offshore.html
How Stuff Works – contains drilling diagrams

http://science.howstuffworks.com/oil-drilling3.htm.
General Websites
Glossary of Christmas Tree

http://www.glossary.oilfield.slb.com/DisplayImage.cfm?ID=476
NaturalGas.org: Well Completion

http://www.naturalgas.org/naturalgas/well_completion.asp
Books
Britain's Offshore Oil and Gas

Publisher: UKOOA ISBN 1 903003 15 7
This book costs less than £10 and covers all the required course material.
However all the material is also available online on the website:
http://www.oilandgasuk.co.uk/education/storyofoil/index.cfm
Journals
Society of Petroleum Engineers Online Journal

http://www.spe.org/
The Career and Educational Resources section is the appropriate area of this
website.
Note: Enter the career/education section and enter “JPT” (Journal of Petroleum
Technology) in the search section.
http://www.spe.org/spe-app/spe/career/index.htm

Signposting of Employability Skills

In addition to the specific vocational skills developed in this Unit, students will
have opportunities to develop and apply their knowledge and understanding of the
employability skills.
Maintaining good
Following basic Reflecting on own
1 timekeeping and 8 15
drawings correctly performance
attendance*
Maintaining a tidy Checking quality of Learning from past
2 9 16
workplace work* experiences
Seeking feedback Working to agreed Awareness of a

3 10 17
and advice* deadlines* range of careers
and job roles
Following Organising work Developing
4 11 18
instructions effectively* investigation skills*
Work cooperatively Working Developing
5 12 19
with others confidently* presentation skills*
Selecting and using
Willingness to learn
tools correctly and Developing
6 13 new skills or 20
for the purpose they creativity skills*
techniques
were designed
Using Personal
Protective Working
14
7 Equipment correctly independently*
and working safely
The employability skills marked with an asterisk* are directly assessed in this Unit.
However opportunities to learn and develop all of these skills are distributed
throughout the course. Some of the skills can be delivered and assessed
discretely but there are also many opportunities for this to take place during group
activities.
Further advice and approaches to integrating employability skills can be found in

the Energy Course Guidance support materials.

Generating Evidence and Assessment Opportunities for Employability Skills

Employability Delivery Advice Possible Activities/Contexts
Skills
• Discuss the importance of good timekeeping within the energy sector and
1 • Turning up for classes on
get students to assess their past timekeeping record. They should identify
what improvements, if any, are needed. This should take place at the start time
of the Course and will set the expected standards. • Returning from breaks on
• Staff should make their expectations clear right from the start of the course time
or Unit. • Arriving on time to visits
Maintaining
good • A good initial activity is to have the students write the class guidelines
themselves by identifying pros and cons of good and poor attendance and • Sticking to planned work
timekeeping schedules regarding timing of
and timekeeping – the benefits in the workplace of one and the consequences of
the other. activities
attendance
• These guidelines or ground rules can be posted in the workshops and • Staying in class for the
classes and referred to on a regular basis. duration of the planned
activity (no extended toilet
• Relate the ground rules to the world of work, eg. arrive on time, back from
breaks)
breaks on time etc. The measure of a student’s success in this aspect is for
them to be honest in their appraisal of their performance and in making
progress. ‘Distance travelled’ should be adopted, rather than a particular
minimum percentage of classes attended.
• Attendance and timekeeping should be monitored throughout the Course.
Students should be given feedback on their performance – both good and
bad – in this regard. If you take note of patterns of performance it should be
easy to give the students accurate feedback.

• Seeking feedback and advice should be encouraged in this unit. However,

this doesn’t mean that you are on call to answer all the students’ • Ask questions
3 questions! The tutor’s role is more likely to be one of reassurance that
• Check work progress with
they are on the right lines, guidance on different approaches they might
staff
take to find answers themselves and discussion to stimulate their own
thinking. • Seek tutor feedback
Seeking
• Confirm instructions when
feedback and • Young students can be wary of seeking advice for fear of highlighting their
unsure
advice own lack of understanding or of being singled out for ridicule perhaps
based on past experience. Discuss the benefits of getting feedback from
staff and asking for advice. This can increase the students’ level of
confidence in what they are doing and can reinforce their views of the
direction they are taking. Success can be greatly increased by using
knowledge and experience gained from others.
• Discuss how the checking of their tasks can lead to a higher quality of • Quality checking as work
9
work and hence meet the standards required. progresses
• Students should be made aware of acceptable standards in terms of the • Quality checking and review
quality of their investigations and presentations. of final investigation findings
Checking and presentation
quality of work
• In the context of this unit, students could, as a group, negotiate and agree • Plan work schedule to meet
deadlines for each stage of the investigation. deadlines
10
• Discuss the need to keep to deadlines and the effects that can result if • Check progress against
they are not maintained. Demonstrate the importance in the real world of schedule and deadlines
keeping to deadlines eg. industry employs project managers whose main
role is to keep work on schedule.
Working to
agreed • Discuss progress with students in the context of the deadlines.
deadlines

• The student centred approach taken in this Unit is intended to help the • Planning their investigations
students develop their organisational and planning skills, although
11 • Creating work schedules
guidance and discussion will be needed to achieve this.
• Discuss how organising and planning work leads to a greater chance of • Planning out how to give a
meeting deadlines and meeting quality standards. Staff should emphasise presentation as a group
Organising work a logical approach to organising work where any process is a combination
of smaller steps taken one at a time. • Planning out how to give an
effectively individual presentation
• Discuss the benefits that working confidently can give eg. being able to • Individual presentations
ask questions or give their point of view without the fear of feeling stupid,
12 being able to stand up in front of others and give a presentation, to work • Drawing up work schedules
without constantly needing reassurance. • Investigations
• Students will have the opportunity to work confidently as they investigate
tasks • Discussions with staff and
Working • Students will have the opportunity to work confidently as they plan and peers
confidently present their work.
• Staff should praise students for effort and good work at every opportunity
to help keep their confidence high.

• Working independently is a key feature of this unit. Some students will • Using information sources
embrace it while for others it will be more of a challenge. For the latter
14 group, reassure that working independently does not mean that they will • Planning and carrying out
not be able to discuss their work with others or ask for guidance if they investigation
need it. • Checking own progress
• Discuss the advantages and disadvantages of working individually, eg. • Checking quality of work
Working advantages could include taking full responsibility, having complete
independently ownership and not depending on others; to disadvantages such as, in • Discussions with tutor
extreme cases, not being able to share problems with others and having • Self evaluation
little social interaction.
• Students can be supported in this objective when you discuss their • Individual presentations
performance with them. Discussions can help to clarify sticking points
and give them the confidence to work out the next steps for themselves.
• Retain brief notes on these conversations about progress as evidence for
employability.
• Discuss the role of investigating to find out information. Students are very • Investigations
used to using the Internet to find things out, but they don’t always see this
as carrying out investigations. • Interviews with family,
friends etc
• Discuss the various methods of finding out information - a wide range
should be encouraged eg. Internet, interviews, papers, TV, books, • Books, journals, Internet,
experiments etc. papers, leaflets
Developing • In the initial stages, students should be given ‘directions’ to help find • Extracting useful information
investigation relevant information.
skills • Use a full range of resources for investigations.
• Encourage students to interview people as well as consult books,
websites etc.
• Emphasise the need to validate Internet sites – ie. is it a reliable website?

• Cross match information from two or more sources.

• Log details of student investigations.
• Students often find giving oral presentations a daunting task. Staff should • Short talks
demonstrate how presentations should be planned and practised.
Students may feel comfortable using mobile phone technology to video a • Tutor support and
presentation, load it onto a computer and run it on the screen. discussion on presentation
• Give encouragement to help them overcome fears. methods
• Use a range of media to help overcome fears eg. PowerPoint or video. • Individual presentations
Developing • Where investigations are presented in written, diagrammatical and
presentation • Folio preparation
graphical formats, time should be taken to discuss effective methods,
skills layout, use of visuals etc, perhaps showing examples and having students • Planning
evaluate them.
• Creativity may have been introduced earlier in the Energy course as a • Individual presentation of
skill which comes up with novel solutions to a problem. Creativity in work
design is the most usual way to demonstrate this but other ways can be
used to show creativity eg. giving an oral/video presentation or presenting • Planning work
a report using diagrammatical, graphical and pictorial images. • Use of technology
• The student centred approach in this unit provides lots of scope for
Developing students to develop creative skills, particularly in the compilation and
creativity skills presentation of their investigation findings and they should be encouraged
to be imaginative in how they present their findings.
• Encourage the integration of presentation methods.

Student Support Section

Welcome to Energy: Oil/Gas Extraction

The oil industry is an international industry involved in finding and extracting crude
oil and gas from oil and gas fields around the world. It is also a major international
employer. In this unit you’ll discover how crude oil and natural gas are formed and
extracted from oil or gas fields. The information you discover will apply to oilfields
all over the world.
Oil is of major importance in the world economy. Cars, planes, ships, and possibly
even your central heating are powered by it. Much of the electricity generated is
fuelled by oil and gas. Oil is also used to produce plastics, pharmaceuticals
(medicine), fertilisers and pesticides. The world economy consumes around 40
billion barrels of oil a year. That is around 4.8 cubic kilometres of oil. Without oil
many aspects of the world economy would simply grind to a halt. So would your
car!
You may have read or seen on television much of the publicity regarding the oil
industry, and how oil is running out. This is widely regarded as being true,
however the oil that is still ‘out there’ will keep the oil industry busy for many
decades. In short, the oil industry will be with us for many years to come.
If you choose a career in the oil industry it could take you anywhere in the world.
Oil rigs are found in some of the most remote locations on Earth, from jungle to
Arctic ice to deserts. Not all are so remote though – we have some of our own in
the North Sea.
If you want to work in the offshore oil industry, there are many careers, from
catering to engineering. Regardless of which path you take, an understanding of
what an oil rig does will be helpful.

How you’ll Learn
This unit is investigation based. This means that you’ll do most of the work!
Your tutor will give you a series of worksheets asking you questions about oil and
gas and the offshore oil industry. You’ll investigate these questions using a variety
of sources to find the answers, possibly on the Internet. You can of course ask
your tutor for guidance and to see if what you have found is correct.
The worksheets are there to help you find the information you need in a logical
order and will help you to organise your work and prepare the presentation of your
findings.
As well as finding out about the oil and gas industry, you’ll be developing a range
of employability skills that will be useful to you whatever career path you choose.
For example, you’ll be learning how to work to deadlines, work independently, and
how to go about an investigation. You’ll have opportunities to show your creative
side when you present your findings. An employability skills checklist is included.
When you have used any of the skills listed, mark them on the sheet.
In your investigation you’re bound to come across some words to do with the oil
and gas industry that you haven’t heard before, so there’s also a partially
completed glossary page for you to fill in as you learn the meaning of more
technical terms.
Don’t worry that you’ll be left to it all on your own though. Your tutor will be there
to give you advice and feedback and will guide you towards various online and
printed resources to help you investigate these topics. If you want to make a start
here are a few websites to look at:
• http://www.oilandgasuk.co.uk
• http://en.wikipedia.org/wiki/Oil_field
• http://en.wikipedia.org/wiki/Gas_field
• http://science.howstuffworks.com/oil-drilling.htm
There are no course notes in this pack because it wouldn’t be much of an

investigation if there were! However the links above will have you browsing for
hours and this short introduction should get you started.

Oil Reservoirs and Oil Wells

An oil reservoir is a type of geological (rock) formation which contains oil. Many
people imagine large pools of oil, deep beneath the Earth, but this is not correct.
If you imagine a piece of sandstone soaked in water you are much closer to the
truth.
Sandstone is ‘porous’. This means liquid and gas can flow through the gaps
between the grains of sand.
Oil reservoirs are made up of a layer of porous rock, containing oil, gas and water.
This is the ‘source rock’.
A layer of non porous rock must be present above the source rock, trapping the
oil. This non porous rock, or seal rock, is very important, as without it the oil
would simply seep to the surface and be lost. This is shown below:-
Figure 1 A simple oil reservoir
Figure 1 shows that there is not just oil present, there is also gas and water. The
gas is the lightest and rises to the top. Oil is lighter than water, so it floats above
the water. These layers are important, as it is this that helps to decide where we
drill the oil well to reach the oil.

Getting the oil out

Notice on the diagram how the oil reservoir has a lot of rock above it. This rock is
very heavy. This means there is a lot of pressure in the reservoir.
Somewhere you will have seen the effect of pressure before is in fizzy drinks
bottles. When it is shaken up a plastic bottle feels hard. If you open the bottle
quickly the fizzy drink will squirt out everywhere until the pressure is released.
Believe it or not an oil well is very similar. If you drill a well down to the oil level in
the reservoir, the oil will be forced out until the pressure in the reservoir is gone.
This natural oil extraction is also known as primary recovery.
Figure 2 Natural Oil Extraction
Once the pressure is gone, the oil will no longer flow. We need to re-pressurise
the well.

Forced Oil Extraction
When the pressure in a reservoir runs out, we can re-pressurise it by pumping

water into the water layer in the reservoir.
This is known as water injection, and forces the oil out of the oil well. If a
reservoir has low pressure, water may be injected as the oil is being taken out,
keeping the reservoir pressure constant.
This is one form of forced oil extraction.
Figure 3 Forced Oil Extraction
There is a lot more to these topics – and that’s what you’ll be investigating! These
notes are to give you an idea of the level you are required to work to. If you want
to expand on these notes in your presentation, feel free!

Employability Skills Checklist

Energy:- Oil and Gas Formation and Extraction:
Employability Skills Checklist
Write on the checklist where you have Name:

demonstrated the employability skills. Class:
Remember to get your tutor to check this. Date:
1 Maintaining good
timekeeping and
attendance
3 Seeking feedback and

advice
9 Checking quality of work
10 Working to agreed
deadlines
11 Organising work
effectively
12 Working confidently
14 Working independently
18 Developing investigation
skills
19 Developing presentation
skills
20 Developing creativity skills

Glossary of Terms
You can add to this list as you come across new terms. It should be filled in as
part of your investigation. Some have been listed as a starting point.
Term Meaning
Crude oil Oil in a natural or raw state; not yet processed or
refined.
Kerogen A complex, fossilised organic material, found in oil
shale and other sedimentary rock, which is
insoluble in common organic solvents and yields
petroleum products on distillation.
Fossil fuel A natural fuel such as coal, oil or gas, formed in the
geological past from the remains of living
organisms.
FPSO Floating production, storage and offloading (vessel).
Impervious Not able to be penetrated.
Migration To move oil and gas under natural forces from one
place to another.
Reservoir A place where fluid collects, in this case the
hydrocarbons.
Seal A substance that prevents anything passing
through.
Sediment Matter that settles to the bottom of a liquid. Material
deposited by water, wind or glaciers.
Sedimentary Rocks formed by or from deposits of sediment.
TLP Tension Leg Platform


Appendix
Excerpt of
“Oil & Gas UK Sustainability Reports for 2006 and 2007”
Reproduced by kind permission of Oil and Gas UK .
The full report can be viewed at :-
Oil & Gas UK

“Oil & Gas UK is the leading representative organisation for the UK offshore oil
and gas industry. Its members are companies licensed by the Government to
explore for and produce oil and gas in UK waters and those who form any part of
the industry's supply chain.”

Economic Sustainability
UKCS oil & gas production outlook

The UKCS has produced over 35 billion barrels of oil and gas since 1970. In 2005
nearly 650 million barrels of oil were produced which more than satisfied domestic
demand over the year. 93% of gas demand was met by indigenous production of
85 billion cubic metres of gas; the remaining 7% was satisfied by withdrawals from
storage and imports.
Figure 18: UK Oil & Gas Production 1970-2005

Security of energy supply is an important aspect of UK energy policy with oil and
gas accounting for 73% of the total primary energy produced in 2005. The UK has
been self-sufficient in oil for more than two decades and is expected to remain so
until around 2010. In 2004, the UK became a net gas importer again after a
decade of self-sufficiency, although it did satisfy 93% of demand in 2005, but this
is projected to continue to rise. If the current rate of investment can be sustained,
there are substantial new indigenous gas development opportunities which can
continue to provide a significant contribution.
Figure 19: UK Combined Oil & Gas Production vs. Consumption 1970-2020

Investment and wealth creation in the UK economy
Oil and gas companies play a key role in UK investment activity, contributing a
fifth of the capital expenditure invested by all production and manufacturing
industries. It also continues to create more wealth than any other production or
manufacturing industry. In 2005, the GVA of the oil and gas industry directly
accounted for £27 billion, with the supply chain and activity induced by the oil and
gas sector as a whole adding a further £12 billion. Together this accounted for
over 3.5% of the total GVA for the UK.
Figure 20: UK Oil & Gas Industry Gross Value Added & Investment

Investment and Expenditure
During 2005 capital investment in new and existing oil and gas fields rose to £5.1
billion (including operational expenditure, the total was £9.8 billion). Capital
investment from 2006 to the end of the decade is projected to total £18 billion
(adding to the £230 billion invested since the mid 1960’s).
Figure 21: UK North Sea Expenditure (2005 Prices), 1970-2005

Cost Efficiency
Operating expenditure to enable recovery from existing fields remained flat at £4.7
billion but given the 8% production decline, unit operating costs (UOC) increased.
In 2004 it cost £3.70 to produce a barrel of oil or gas equivalent (disregarding
initial finding and development costs) but this rose to £4 per barrel in 2005, an
increase of 8%.
Figure 22: UKCS Unit Operating Cost 2003-2010

Reserves stewardship and recovery
Figure 23: Estimate of UKCS Reserves and Exploration Potential (1.1.06)
13 projects were given development approval in 2005. 14 new fields were

brought into production in 2005, comprising 9 subsea developments and 5 new
platforms. The DTI has now replaced the annual field report with a new
“stewardship process” which was launched in April 2005. This has improved
understanding of development trends and identification of further opportunity
potential. The returns for 2006 was kicked off in February, which should allow
insights to feed through into 2007 Joint Venture plans and budgets fixed in the
autumn.

Reserves replacement by exploration & appraisal drilling
Exploration and appraisal activity has continued to increase over recent years with
78 E&A wells drilled in 2005, a 25% increase on the 63 drilled in 2004. Projections
suggest that this high level will be sustained beyond 2006 constrained by rig
availability.
Figure 24: UKCS Exploration & Appraisal Drilling
However, E&A activity is competing for rig slots with development drilling and
production, with rig utilisation already at 100% for jack-ups and 86% for semi-
submersibles. There is potential for the rig market to become an even bigger
constraint on activity if rigs are attracted away from the UKCS to basins with more
material prospects or more stable fiscal regimes.
The successful 23rd licensing round in 2005 saw a record 152 licences awarded
(76 Promote licences, 6 Frontier and 70 Traditional). It attracted 24 new entrants
to the UKCS and included 69 blocks previously released from earlier licences
under the DTI’s ‘fallow blocks and discoveries’ initiative.

Figure 25: Number of licences awarded through licensing rounds

Infrastructure Utilisation
The majority of offshore infrastructure is now only partly full and being increasingly
utilised for third party business. Extending the life of infrastructure allows more
reserves to be recovered from existing fields and encourages new exploration and
development activity. Once infrastructure is removed, nearby discoveries become
more expensive to develop (potentially reducing ultimate UKCS recovery) and any
utilisation for other opportunities, such as gas storage or carbon sequestration, is
lost.
Figure 26: UKCS Pipeline Utilisation – Gas
Figure 27: UKCS Pipeline Utilisation - Oil

Appendix
Energy Review 2006 – “Our Energy Challenge” Submission by UK Offshore
Operators Association
Summary
The importance of UK’s oil and gas
The UK will become more dependent on oil and gas over the next 15-20 years and government
should create an environment which helps maximise domestic production.
• Oil and gas will remain essential to the UK, its people and economy, for the foreseeable future. They
currently provide about three quarters of primary energy supplies. This proportion is forecast by
government to increase to 80% or more by 2020. It was noteworthy that, after the G8’s energy
ministers had met on 15th and 16th March 2006 in Moscow, in point 3 of an 11 point communiqué, it
was stated that “Despite the increased presence of alternative sources in the energy mix, fossil fuels will
remain the basis of the world energy industry for at least the first half of the 21st century.” UKOOA
agrees.
• The UK remains a very significant oil and gas producer, with substantial reserves remaining (16-27
billion barrels of oil equivalent “Barrel of oil equivalent” (boe) equates gas volumes with oil, so that a
single measure can be made of the two in combination.), which will continue to bring major benefits to
the nation in terms of security of supply, economic contribution and achievement of environmental
objectives for many years to come. In 2005, the industry provided:
1. the overwhelming majority of UK’s oil and gas needs
2. some £30 bn of economic output
3. £5 bn of investment, the largest of any industrial sector
4. another £5 bn of operating expenditure
5. £10 bn in taxes paid
6. 270,000 mainly high value adding jobs
7. the single largest contribution to lowering atmospheric emissions.
• Given the inevitable increase in our medium term dependency on oil and gas, that which we do not
produce ourselves will have to be imported at significant extra cost to the economy.
• Therefore, it is of the utmost importance that the UK maximises the economic production of its own oil
and gas. However, there is a real danger that current energy policy will not achieve this end and that a
significant portion of the country’s reserves will remain undeveloped, or even unexplored.
So, UKOOA calls for a new approach to energy policy

The UK needs a Secretary of State for Energy so that energy policy can be properly developed
and promoted.
• Energy policy needs to be better aligned and represented within government. Currently, it is being
determined by a number of separate teams, including DTI, Treasury, DEFRA, FCO and the Prime
Minister’s office. UKOOA believes that this is not sustainable and that a more efficient and coherent
approach is required, managed by a dedicated department and headed by a Secretary of State for
Energy.
• With respect to the production of offshore oil and gas:

o there are too many different and un-necessarily burdensome regulatory influences (UK and EU)
which fail to recognise the objective of maximising economic recovery of our reserves;
o the remit and activities of Ofgem should be re-examined in this light;
o the unsatisfactory rules regarding decommissioning are an example of conflicting policy which
hinder the trading of assets and may well result in the premature removal of infrastructure to
the detriment of future production;
o the current fiscal regime fails to provide long term stability for encouraging investment, where
the UKCS has to compete internationally for funding; more specifically, it discourages the
pursuit of high risk exploration and development opportunities and does not recognise that new
fields are predominantly small, costly to develop and of marginal value after tax.
• In making this proposal, UKOOA does not expect the Treasury, DEFRA or other departments to
abrogate their particular responsibilities to a new Secretary of State, but we do believe that leadership in
energy policy needs dedicated resources and expertise concentrated in its own government
department.
The importance of open markets for security of supply

Government should continue its active support for the EU in its drive to liberalise European
energy markets.
• Open markets play a central role in achieving security of supply, by encouraging diversity of supply at
affordable prices. The government’s support for the EU Commission’s efforts to liberalise European
markets is welcome.
• The EU and Member States should use their collective influence to create the right political and
economic conditions to encourage major new investment in energy supplies and associated transport
systems, both within Member States and in supplying and transit countries.
• DTI’s recent consultation on gas quality did not consider properly the potential implications for security
of supply of its proposal to remain with the current, comparatively narrow range for the UK’s gas
specification. These could be very significant. We call for this matter to be re-examined.
Offshore oil and gas and the environment

Aspirations for carbon capture and storage must not be allowed to hinder the maximum economic
recovery of our oil and gas reserves.
• Natural gas has, more than anything else, enabled the UK to achieve major improvements in its
environmental performance during the past 35-40 years and to meet its Kyoto commitments.
• Carbon capture and storage (CCS) is a potentially interesting environmental development for disposing
of a waste product from energy consumption. The regulatory and technical challenges are
surmountable, but the economics remain uncertain.
• While the industry can assist other sectors with disposal of this waste, CCS should not become a
burden on and hence detract from the exploitation of our offshore oil and gas reserves. Companies
wishing to undertake CCS projects should be given credits under the EU’s Emissions Trading Scheme.

The oil and gas supply chain, a significant success story

Energy policy needs to recognise the economic and technical contribution to the economy made
by the oil and gas supply chain and to ensure that its growth is fostered.
• The supply chain supporting the UK oil and gas industry is a significant and growing success story, with
substantial foreign earnings (estimated at £7-8 billion in 2004) based on leading edge technology and
with the potential for continuing long after our own oil and gas resources are depleted.
• Energy policy should recognise and support this dynamic, engineering-driven success story, both in this
country and, of increasing importance, in export markets.
Sustainable Development 2006 Report | Striking a balance

Energy SFW Oil Gas Extraction (September 2008)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Energy SFW Oil Gas Extraction (September 2008)

Uploaded by

Copyright:

Available Formats

Skills for Work:

“Oil & Gas UK Sustainability Reports for 2006 and 2007”

are reproduced by kind permission of Oil & Gas UK

The full report can be viewed at:

Oil and Gas UK

© Scottish Further Education Unit 2008

SFEU is a Registered Scottish Charity No. SC021876 and a

Scottish Further Education Unit 3

Scottish Further Education Unit 4

Enquiries relating to this support pack or issues relating to copyright should be

Marketing Officer - Communications

Further information regarding this Unit including Unit Specifications, National

The Scottish Qualifications Authority

Scottish Further Education Unit 5

Tel: 0191 280 0400

Scottish Further Education Unit 6

How to Use this Pack 8

Tutor Support Section 21

Student Support Section 37

Scottish Further Education Unit 7

How to Use this Pack

The pack is organised into several sections:

Scottish Further Education Unit 8

Scottish Further Education Unit 9

What are Skills for Work Courses all about?

Skills for Work Courses are designed to help candidates to develop:

A key feature of these Courses is the emphasis on experiential learning. This

Learning through practical experience

Learning through reflecting at all stages of the experience

Teaching/learning programmes should include some or all of the following:

Scottish Further Education Unit 10

Scottish Further Education Unit 11

A Curriculum for Excellence (Scottish Executive 2004) identifies aspirations for

The learning environments, the focus on experiential learning and the

Scottish Further Education Unit 12

The Course in Energy (Intermediate 2)

The general aims of the Course are to:

• widen participation in vocationally-related learning for 14–16 year olds

Scottish Further Education Unit 13

• facilitate progression to further education and/or training

In particular, the specific aims of the Course are to:

Rationale for Course content

The development of most renewable energy systems is a recent innovation where

Scottish Further Education Unit 14

Scottish Further Education Unit 15

Unit Outcomes, PCs and Evidence Requirements

Acceptable performance in this Unit will be the satisfactory achievement of the

a) Gather relevant information from a variety of sources according to the given

a) Gather relevant information from a variety of sources according to the given

Scottish Further Education Unit 16

a) Present clear summary information on the formation and structure of oil/gas

Evidence Requirements for this Unit

Evidence is required to demonstrate the candidates have achieved all Outcomes

Performance and product evidence

Candidates will carry out an individual investigation according to the instructions in

An assessor checklist identifying the critical aspects of the presentation regardless

Scottish Further Education Unit 17

• summary information must be clear

NB Centres must refer to the full Unit Specification for detailed

Scottish Further Education Unit 18

Employability Skills Profile

Scottish Further Education Unit 19