Category: Oil and Gas business

The degree that the well can produce hydrocarbons

See pro-rata allocation and see priority allocation separately, for LNG gasification facilities

A pressure survey is conducted after the first year of production in a gas well and consequently annually. The survey is required to review the decreasing trend of the pressure in a gas reservoir in order to estimate the amount of gas that remains. Since the pressure in a reservoir decreases in a linear manner to the decrease volume (each 1% of gas removed should in principle cause a decrease of 1% in the reservoir pressure), it is a good instrument to gauge the amount of reserves remaining after a number of years of production. After 5 years if you have taken out 1/3 of the gas from a 15 year field the usual pressure will have dropped equally by 1/3 of the original pressure, so that after 5 years a competent operator would know how much gas he has left in his field. If you have an initial pressure of 2000 PSI and after 5 years you have 1500 PSI the operator should conclude that he has 15 years worth of gas left. The survey helps the operator to have a better understanding of the well performance

License granted by the state to enable the license holder to produce hydrocarbons in his lease

Porosity which is present in sediment at the time of deposition or formed during sedimentation. Compare secondary porosity

A mathematical means to explain the ability of a reservoir to deliver fluids to the wellbore.

The productivity index (more briefly PI) takes into account the reservoir characteristics at the inlet of the well, through the specification of a relation between the inlet total flow rate QT, the well inlet pressure P and the reservoir pressure PG.

The phase of the petroleum industry that deals with bringing the well fluids to the surface and separating them and storing, gauging, and otherwise preparing the product for delivery. The aim of production operations is to safely maximize the recovery of hydrocarbons from the field.

The allocation of production among reservoirs and wells or pipeline allocation of capacity among shippers, etc.

One of three common methods to remove nitrogen from natural gas. The pressure swing adsorption process utilizes a carbon bed technology to separate the nitrogen from the hydrocarbons and can perform effectively even where there are large amounts of nitrogen in the feed stream. A particular advantage of the pressure swing adsorption process is its scalability. It can be used in small plants designed to handle 100,000 cubic feet of gas per day as well as plants processing volumes in the millions of cubic feet.