Category: Oil and Gas business

The pressure measured in the wellhead of a producing well

This technology has the potential to increase yields of gasoline, diesel, and jet fuel from heavy and ultra heavy crude oil and could be used to increase and upgrade production of heavy oil resources. Process patented by Chevron

There has been an increase volatility in oil and gas prices (namely prices moving up and down). In theory, after periods of volatility, commodity markets should eventually revert to a price that reflects fundamentals of supply and demand because they are underpinned by raw materials. If buyers do not emerge when prices are high, a surplus will build and prices deflate. Volatile oil and gas prices can be affected by oil speculators on the one hand or supply and demand on the other. Predicting oil prices is a predictably risky business. One of the largest uncertainties is whether the market in late 2008 early 2009 will echo the early 1980s when prices collapsed and stayed low for much of the next two decades or whether it will prove more like 1998 when prices fell to $10 a barrel after the Asian financial crisis but rebounded within a few years as economic growth picked up

DTI defines a well to be a borehole drilled into the earth from a single surface or subsurface location to a single subsurface location. If the surface location changes but the target location stays the same then a new well is regarded as a respud of the first well. If the target location changes but the surface location stays the same the new well is called a geological sidetrack. If a sidetrack is made to bypass an obstruction while the surface and target locations remain the same this is called a mechanical sidetrack. A well may be drilled intentionally into an existing well. Wells include finder wells (cheap wells designed to gather minimum essential data), exploration wells, production wells, sidetrack wells, multi lateral wells.

The reservoir drive mechanism in which oil is produced by the expansion of the underlying water and rock, which forces the oil into the wellbore. In general, there are two types of water drive: bottom-water drive, in which the oil is totally underlain by water; and edgewater drive, in which only a portion of the oil is in contact with the water. (2) An oil or gas reservoir in which pressure is maintained to a greater or lesser extent by an influx of water as the oil or gas is removed.

Static wellhead pressure during test