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Monday, January 17, 2011

OPEC ups demand growth estimate, will not increase production

OPEC ups demand growth estimate, will not increase production
The Organization of Petroleum Exporting Countries upped its prediction for oil demand growth for 2011 by 50,000 barrels per day on Monday, to 1.2 million barrels per day, with demand for oil from OPEC member nations expected to average 29.4 million barrels per day, 40,000 barrels over demand last year.
OPEC oil ministers also said that the cartel would not increase output despite higher prices.
While the OPEC ministers were not bothered by oil prices that have returned to nearly $100 per barrel, the head of the International Energy Agency expressed concern that prices at present levels could hurt economic recovery.
US markets were closed to floor trade in observance of Dr. Martin Luther King, Jr’s birthday, but in electronic trade West Texas Intermediate Crude was down just over half a dollar to $91.02 per barrel at early afternoon in New York, while Brent crude had most recently dropped 81 cents to $97.57 per barrel on the ICE Futures Europe exchange in London..
Meanwhile, the retail pirce of regular unleaded gasoline dropped slightly overnight, to $3.096 per gallon on average in the United States.

Daily Oil Prices 5 Jan 2011

crude oil prices
WTI Oil Chart 5 Jan 2011
Daily oil prices have today rebound back above the $90 per barrel price handle following better than expected crude oil inventories which confirmed a draw of -4.2m barrels against a forecast of -1.4m barrels.  This data also followed much better than expected employment data in the US suggesting that the US may now be seeing the start of a much firmer economic recovery.  Two further factors which will also impact commodity prices include Iran and Kuwait’s determination to maintain OPEC production targets and the emergence of La Nina weather phenomenon, confirmed earlier today by the Australian Bureau of Meteorology.  According to the FT it seems the “strength of the present event is inspiring comparisons with 1973-1976, when several years of La Nina conditions triggered severe droughts and pushed the world into the most extreme food crisis since the second world war”.  It’s effect on oil production will be seen in disruptions to offshore drilling and production.
From a technical perspective crude oil prices look set to re-test the psychological $100 per barrel price handle which given the stance taken by OPEC and possible weather conditions may be sooner than anticipated.
Kuwait & Iran stand firm on oil production

Wednesday, January 12, 2011

Fracturing port collar for wellbore pack-off system, and method for using same

A collar for injecting fluid, such as a formation treating fluid, into a wellbore, and a method for using same. The collar is disposed between the upper and lower packing elements of a pack-off system during the treatment of an area of interest within a wellbore. The collar first comprises an inner mandrel running essentially the length of the collar. The inner bore of the collar is in fluid communication with the annular region between the collar and the surrounding perforated casing by a set of actuation ports. A second set of ports, known as frac ports, is disposed within the mandrel. In accordance with one aspect of the invention, the collar further comprises a tubular case which substantially seals the frac ports in a first position, and slidably moves along the outer surface of the mandrel in order to expose the frac ports in a second position. In operation, the upper and lower packing elements are set at a first fluid pressure level. Upon application of a second greater fluid pressure level, the upper and lower packing elements are further separated in accordance with a designed stroke length, thereby exposing the frac ports.

Foreign References:
GB2275284
GB2292400
WO/2001/094743PORT COLLAR ASSEMBLY FOR USE IN A WELLBORE
Other References:

Tuesday, January 11, 2011

All About Directional Drilling Rigs

Directional Drilling Rigs

Power Bore 70 (1 No)
Click the image to enlarge
then use the Next / Prev buttons to view more images
Technical Details
Torque 30000 Nm
Pull Back 700 kN (70 Tonne)
Length 9.2m
Width 2.4m
Height 3.2m
Engine Type Cummins C6TA8.3-P
Drill Rod Length 4.6m long, 5" diameter. 4.5" IF thread

Maxi Drilling Rig

Maxi Drilling Rig - 250 tonnes of Thrust and Pull Back

AMS No-Dig Ltd has recently increased its Horizontal Directional Drilling fleet with the purchase of a new Maxi Drilling Rig together with mud processing, pumping and recycling plant.

The Prime drilling rig (PD250/90), as the name suggests, offers 250 tonnes of thrust and pullback with 90,000Nm of rotary torque making it the most powerful rig based in the United Kingdom.

In simple terms this means conduits up to 1.5m diameter and bores in excess of 2km are within scope.

Directional Drilling Process


The Directional Drilling Process

Guided Auger Boring can provide a solution in situations where HDD cannot be utilised, where set up room is limited or in situations where levels are critical.

Traditionally this technique has been used in the installation of vitrified clay gravity sewers but is being applied increasingly in the installation of steel sleeves used to carry utility installations.

The AMS No-Dig fleet has the capacity to install product up to 900mm in diameter and up to 90m in length, subject to ground conditions.

Directional Drilling

Directional Drilling

Horizontal Directional Drilling (HDD) is a technique by which pipe, duct or cable can be installed underground without disturbing surface structures and thereby avoiding the disruption caused by traditional open trenching methods.

Installations under motorways, waterways, railways, airport runways and SSSI sites are routine.

The cost savings resulting from the application of this technology, in both direct and consequential terms, can be very significant. HDD is fast, efficient and environmentally friendly.

Using the latest in tooling and mud technology, successful installations can be achieved in most ground formations.

The AMS No-Dig fleet has the capacity to install product up to 800mm in diameter and up to 600m in length, subject to ground conditions.

Directional Drilling Process
  

Natural Gas Exploration - Natural Oil Drilling

The Barnett Shale
Link to Barnett Shale Basin map
Barnett Shale Basin in North Texas
Sitting atop what geologists refer to as the Fort Worth Basin lies the Barnett Shale, a 600 foot thick layer of decomposed organic material deposited 300-320 million years ago that produced methane or natural gas.  Believed to be one of the nation's richest natural gas deposits, the Barnett Shale spans a 17-20 county area estimated to contain 30 trillion cubic feet of natural gas.

As the map illustrates, a portion of Cedar Hill is located over the eastern edge of the Barnett Shale Basin.  Experts suggest that this geological formation of sedimentary rock, approximately 1 - 1½ miles below the surface, may be the largest onshore natural gas field in North America, covering approximately 5,000 square miles.

There are a number of energy companies operating in the Barnett Shale, although not all of them perform the same functions.  Some companies specialize in leasing mineral rights or running title research.  Others are major exploration and production (E&P) companies - also referred to as "operators."  Yet others are service companies working primarily for operators in natural gas drilling or well-completion functions.  Publicly traded E&P companies with strong operation in this market include Dawson Geophysical, Chesapeake, Devon, EOG, Quicksilver, Williams and XTO Energy.  There are also many smaller, privately or foreign-owned energy companies involved in the area.  It is advisable to check out the background and references of any companies you may be working with.

Current City Regulations
Gas drilling rig
Gas Drilling Rig
The Cedar Hill Code of Ordinances Chapter 13 NATURAL RESOURCES, ARTICLE II., adopted in 1984, specifically addresses the extraction of natural resources.  The ordinance allows oil and gas drilling on property zoned C - Commercial, I - Industrial or IP - Industrial Park (See Zoning District Map).  However the ordinance prohibits drilling sites on any property zoned for residential use or within five hundred feet (500') of any residential or multi-family structure in any zone.  While current City Codes do not allow drilling in residential areas, exploration is underway in the form of seismic testing.  Chapter 15 PARKS AND RECREATION, ARTICLE I., prohibits drilling for gas in City Parks.

City of Cedar Hill Zoning Code
The Cedar Hill Zoning Code also contains standards that regulate where drilling sites may be located and how they are to be operated.  The Zoning Code requires a CUP be issued by the City Council before drilling activity commences.  This permit allows the City Council to set specific standards and requirements aimed at mitigating the negative impacts of drilling and operating a gas well.

Before the City Council considers a request for a CUP they will first conduct a public hearing and take public comment regarding the request.  Notice of this public hearing will be published in the local newspaper of record and mailed to all property owners within 200 feet of the proposed well site.  The CUP must be issued by the City Council before drilling activity commences.  The City Council may approve the request provided they are satisfied that the conditions for approval, found in ARTICLE 3.20.5 of the Zoning Code, have been met.

Natural Gas Drilling - How to Invest in Gas

'm talking about natural gas!
Natural gas has climbed just 6% in the past year. Compare that to the 56% surge that oil has enjoyed. As a result, a barrel of crude costs about 12 times as much as 1 million BTUs of gas.
That is WAY above the average price ratio of 7.8 over the past 10 years!
Sure, that ratio can get even higher — in July 1991, in the wake of the Gulf War, oil traded at 18 times the price of natural gas.
But we're clearly at the high end of the range now, and here's the really interesting part ...
In the past decade, we've only seen three times when crude oil traded at a price more than 12 times that of natural gas. Each time, the gap narrowed to the average within four months.
So if you think oil is going higher — as I do — then it's likely that natural gas is smoking on the launch pad.
Natural gas has been consolidating for 2 years. It seems ready to break out to the upside Today, I'm going to give you an undervalued natural gas stock as well as a natural gas fund that could help you profit from a surge in natural gas prices. But first, let's look at some fundamental forces driving this market.
Gassing Up for the Future
America gets about 40% of its energy from oil, according to statistics from oil giant BP. Meanwhile, Natural gas accounts for 24% of U.S. energy supply — about as much as coal.
But drillers aren't acting that way:
The number of drilled U.S. OIL wells increased 28% in the past year, according to the Energy Department.
NATURAL GAS wells DECLINED 1.1%!
And unlike the Strategic Petroleum Reserve, the U.S. has no strategic reserve for natural gas. When commercial inventories go down — and they can go down pretty quickly — there's no government safety net.
Red envelopes mean lots of cash for Chinese consumers (and some companies!)
The number of drilled natural gas wells
declined in 2007!
How Low Can Inventories Go?
According to the Energy Information Administration, U.S. natural gas inventories fell 12% to 2.06 trillion cubic feet in the past 12 months. That is still above the long-term average, but according to Bloomberg news, stockpiles are at the lowest level for this time of year since 2004.
Our natural gas is increasingly imported. Liquefied natural gas imports jumped 34% in 2007. Why don't we just pump it here? That's what producers are trying to do.
From a low in early 1999 of 397 active gas drilling rigs in Canada and the United States combined, the count has vaulted to 1,424 active gas rigs for the week just ended. The fact is, natural gas in North America is getting harder to find; and the gas that is found is smaller fields that flow at slower rates.
As a result, North American natural gas production has been stuck on a plateau fluctuating between 26 and 27 trillion cubic feet of production annually since 1998.
Meanwhile, Consumption Is Red-Hot …
Nationwide, consumption increased 2.8% to 1.81 trillion cubic feet in November. That probably ratcheted up in December, as arctic weather gripped the nation. And the below-normal cold we saw in January was in contrast to above-normal temperatures last year.

Sunday, January 9, 2011

Earth Drilling rig


elescopic Kelly bar type Earth Drilling rig

NISSHA ED-series
NISSHA ED( Earth boy -Nick name ) earth drilling rigs are of “Kelly bar type” earth drilling rigs for constructing various sized bored piles (Cast-in place concrete piles) into comparatively soft stratums where no cobbles and boulders contained. There are two type of rigs, a lattice boom type (Two models) and a telescopic boom type (One model).
Applications:
Drilling bore holes for constructing various sized cast-in-place concrete piles into the comparatively soft stratums (Maximum S.P.T. N-value 50).
Fleet of earth drilling rigs:
Ranging from φ1000 ~ 3000mm in shaft diameter and 43~62m in depth. Bell pile bucket (φ1700~4100)
Brief specifications:
Full-hydraulic drive, Self-propelled, Square/round type telescopic kelly bar with rotary bucket. Lattice boom type/ telescopic boom type/Leader type. Bell-pile bucket with computer monitor/recorder (Optional extra).
Models LINEUP
TE4300H ED5800H ED6200H-2
Typical Operation Proceduresin constructing a cast-in-place concrete pile with a bell pile bottom.
1. Centering 2. Starting drilling 3. Inserting stand pipe
4.Feeding bentonite 5.Drilling till the specified depth 6.Inserting belling bucket
7. Reaming bore hole bottom 8. Measuring depth 9.Setting up iron-reinforcement cage
10. Inserting tremie tube 11. Cleaning slime by an air-lift 12. 13 Concreting 14.Completing cast-in-place concrete pile with belling bottom.

Directional Drilling Photos

HORIZONTAL DIRECTIONAL DRILLING

Underground lines and conduit can be installed using HDD (Horizontal Directional Drilling).

This process uses drilling technology to bore a small hole from one location to the next. Once the drill rod comes to the end of the bore the new pipe is attached and pulled back eliminating open excavation. This technology can be used to install lines and conduit under roads, railroads, ponds, lakes, streams, industrial buildings, etc. without the impact of open excavation. The process can be see below.


  


Horizontal oil and gas well drilling has become one of the most valuable technologies ever introduced in the business. It is an enhanced oil recovery (EOR) or gas recovery method that is becoming more and more popular as the price per barrel of oil gets higher.

Unlike a directional well that is drilled to position a reservoir entry point, a horizontal well is commonly defined as any well in which the lower part of the well bore parallels the oil zone. The angle of inclination used to drill the well does not have to reach 90� for the well to be considered a horizontal well. Applications for horizontal wells include the exploitation of thin oil-rim reservoirs, avoidance of drawdown-related problems such as water/gas coning, and extension of wells by means of multiple drain holes.



Cost experts have agreed that horizontal wells have become a preferred method of recovering oil and gas from reservoirs in which these fluids occupy strata that are horizontal, or nearly so, because they offer greater contact area with the productive layer than vertical wells. While the cost factor for a horizontal well may be as much as two or three times that of a vertical well, the production factor can be enhanced as much as 15 or 20 times, making it very attractive.

To give an idea of the effectiveness of horizontal drilling, the U.S. Department of Energy indicates that using horizontal drilling can lead to an increase in reserves in place by 2% of the original oil in place. The production ratio for horizontal wells versus vertical wells is 3.2 to 1, while the cost ratio of horizontal versus vertical wells is only 2 to 1.

Three main types of horizontal wells:

Short Radius

Medium Radius

Long Radius



Horizontal oil drilling can be used in many situations where conventional drilling is either impossible or cost prohibitive. This is by no means an exhaustive list, but it should get you thinking about the possibilities of horizontal directional drilling.




As horizontal well drilling can be used in these scenarios:

under buildings, roads, and other surface obstructions
under active sites where surface operations precluded drilling equipment (Airports and Highways)

to efficiently extract soil vapor

to identify the causes of decreased well performance

to place leak detection sensors beneath solid or hazardous waste landfills

to install gas collection systems at landfills or similar waste dumps

to stabilizing hillsides for mine waste dumps or other unstable granular soil masses

to dewater hillsides where mudslides endanger housing developments

to install groundwater collection galleries in shallow aquifers for private or public water supply

to convey fluids between vertical wells and treatment facilities

Directional drilling

See Also : 
Directional Drilling Photos 

History

Many prerequisites enabled this suite of technologies to become productive. Probably the first requirement was the realization that oil wells (or water wells, but since they are shallower, most development was in the oil industry) are not necessarily vertical. This realization was quite slow, and did not really grasp the attention of the oil industry until the late 1920s when there were several lawsuits alleging that wells drilled from a rig on one property had crossed the boundary and were penetrating a reservoir on an adjacent property. Initially, proxy evidence such as production changes in pre-existing wells was accepted, but such cases fueled the development of small diameter tools capable of surveying wells during drilling.

Measuring the inclination of a wellbore (its deviation from the vertical) is comparatively simple, requiring only a pendulum. Measuring the azimuth (direction with respect to the geographic grid in which the wellbore is running from the vertical), however, was more difficult. In certain circumstances, magnetic fields could be used, but could be influenced by metalwork used inside wellbores, as well as the metalwork used in drilling equipment. The next advance was in the modification of small gyroscopic compasses by the Sperry Corporation, who were making similar compasses for aeronautical navigation. Sperry did this under contract to Sun Oil (who were involved in a lawsuit as described above), and a spin-off company "Sperry Sun" was formed, which brand continues to this day, absorbed into Halliburton. Three components are measured at any given point in a wellbore in order to determine its position: the depth of the point (measured depth), the inclination at the point, and the magnetic azimuth at the point. These 3 components combined are referred to as a "survey". A series of consecutive surveys are needed to track the progress and location of a wellbore. Many of the earliest innovations such as photographic single shot technology and crow's feet baffle plates for landing survey tools were developed by Robert Richardson, an independent directional driller who first drilled in the 1940s and was still working in 2008. (JPT, vol 17, issue 4, pg.32)

Prior experience with rotary drilling had established several principles for the configuration of drilling equipment down hole ("Bottom Hole Assembly" or "BHA") that would be prone to "drilling crooked hole" (initial accidental deviations from the vertical would be increased). Counter-experience had also given early directional drillers ("DD's") principles of BHA design and drilling practice which would help bring a crooked hole nearer the vertical.

In 1934, John Eastman of California became a pioneer in directional drilling. (E&P, "Making a hole was hard work",Kris Wells, AOGHS Contributing Editor, Nov. 1, 2006). H.C. Country Harris, Jr. followed John Eastman as a pioneer in directional drilling with the formation of Whipstock,Inc., in which Harris served as President, majority owner as well as an active directional driller worldwide. (from my personal knowledge as his son). In a May,1934 Popular Science Monthly article, it was stated that " Only a handfull of men in the world have the strange power to make a bit rotating a mile below ground at the end of a steel drill pipe, snake its way in a curve or aroung a dog leg angle, to reach a desired object." By 1973, the two companies had merged to become Eastman Whipstock, Inc., the worlds largest directional company. ( Making a hole was hard work, supra).

Combined, these survey tools and BHA designs made directional drilling possible, but it was perceived as arcane. The next major advance was in the 1970s, when downhole drilling motors (aka mud motors, driven by the hydraulic power of drilling mud circulated down the drill string) became common. These allowed the bit to be rotated on the bottom of the hole, while most of the drill pipe was held stationary. Including a piece of bent pipe (a "bent sub") between the stationary drill pipe and the top of the motor allowed the direction of the wellbore to be changed without needing to pull all the drill pipe out and place another whipstock. Coupled with the development of Measurement While Drilling tools (using mud pulse telemetry or EM telemetry, which allows tools down hole to send directional data back to the surface without disturbing drilling operations), directional drilling became easier. Certain profiles could not be drilled without the drill string rotating at all times.
[edit]
Benefits

Directional wells are drilled for several purposes:
Increasing the exposed section length through the reservoir by drilling through the reservoir at an angle
Drilling into the reservoir where vertical access is difficult or not possible. For instance an oilfield under a town, under a lake, or underneath a difficult to drill formation
Allowing more wellheads to be grouped together on one surface location can allow fewer rig moves, less surface area disturbance, and make it easier and cheaper to complete and produce the wells. For instance, on an oil platform or jacket offshore, up to about 40 wells can be grouped together. The wells will fan out from the platform into the reservoir below. This concept is being applied to land wells, allowing multiple subsurface locations to be reached from one pad, reducing environmental impact.
Drilling a "relief well" to relieve the pressure of a well producing without restraint (a "blow out"). In this scenario, another well could be drilled starting at a safe distance away from the blow out, but intersecting the troubled wellbore. Then, heavy fluid (kill fluid) is pumped into the relief wellbore to suppress the high pressure in the original wellbore causing the blowout.

Most directional drillers are given a well path to follow that is predetermined by engineers and geologists before the drilling commences. When the directional driller starts the drilling process, periodic surveys are taken with a downhole instrument to provide survey data (inclination and azimuth) of the well bore.[1] These pictures are typically taken at intervals between 30–500 feet, with 90 feet common during active changes of angle or direction, and distances of 200–300 feet being typical while "drilling ahead" (not making active changes to angle and direction). During critical angle and direction changes, especially while using a downhole motor, an MWD (Measurement while drilling) tool will be added to the drill string to provide continuously updated measurements that may be used for (near) real-time adjustments.

These data indicate if the well is following the planned path and whether the orientation of the drilling assembly is causing the well to deviate as planned. Corrections are regularly made by techniques as simple as adjusting rotation speed or the drill string weight (weight on bottom) and stiffness, as well as more complicated and time consuming methods, such as introducing a downhole motor. Such pictures, or surveys, are plotted and maintained as an engineering and legal record describing the path of the well bore. The survey pictures taken while drilling are typically confirmed by a later survey in full of the borehole, typically using a "multi-shot camera" device.

The multi-shot camera advances the film at time intervals so that by sealing the camera instrument into a tubular housing and dropping the assembly into the drilling string (down to just above the drilling bit), and then withdrawing the drill string at time intervals, the well may be fully surveyed at regular intervals (approximately every 90 feet being common, the typical length of 2 or 3 joints of drill pipe, known as a stand, since most drilling rigs "stand back" the pipe withdrawn from the hole at such increments, known as "stands".)

Drilling far from the surface location still requires careful planning and design. The current record holders manage wells over 10 km (6 miles) away from the surface location at a depth of only 1,600–2,600 m (5,200–8,500 ft).[2]
[edit]
Disadvantages

Until the arrival of modern downhole motors and better tools to measure inclination and azimuth of the hole, directional drilling and horizontal drilling was much slower than vertical drilling due to the need to stop regularly and take time consuming surveys, and due to slower progress in drilling itself (lower rate of penetration). These disadvantages have shrunk over time as downhole motors became more efficient and semi-continuous surveying became possible.

What remains is a difference in operating costs: for wells with an inclination of less than 40 degrees, tools to carry out adjustments or repair work can be lowered by gravity on cable into the hole. For higher inclinations, more expensive equipment has to be mobilized to push tools down the hole.

Another disadvantage of wells with a high inclination was that prevention of sand influx into the well was less reliable and needed higher effort. Again, this disadvantage has diminished such that, provided sand control is adequately planned, it is possible to carry it out reliably.
[edit]
Stealing oil

In 1990, Iraq accused Kuwait of stealing Iraq's oil through slant drilling. The United Nations redrew the border after the 1991 Gulf war that liberated Kuwait from a seven-month Iraqi occupation under former leader Saddam Hussein. It placed 11 oil wells, some farms and an old naval base that used to be in Iraq on the Kuwaiti side.[3]

In the mid-twentieth century, a slant-drilling scandal occurred in the huge East Texas Oil Field

Tuesday, January 4, 2011

oil well cost

The cost of a well depends mainly on the daily rate of the drilling rig, the extra services required to drill the well, the duration of the well programme (including downtime and weather time), and the remoteness of the location (logistic supply costs).

The daily rates of offshore drilling rigs vary by their capability, and the market availability. Rig rates reported by industry web service[8] show that the deepwater water floating drilling rigs are over twice that of the shallow water fleet, and rates for jackup fleet can vary by factor of 3 depending upon capability.

With deepwater drilling rig rates in 2010 of around $420,000/day,[8] and similar additional spread costs, a deep water well of duration of 100 days can cost around US$100 million.

With high performance jackup rig rates in 2010 of around $150,000,[8] and similar service costs, a high pressure, high temperature well of duration 100 days can cost about US$30 million.

Onshore wells can be considerably cheaper, particularly if the field is at a shallow depth, where costs range from less than $1 million to $15 million for deep and difficult wells.[citation needed]

The total cost of an oil well mentioned does not include the costs associated with the risk of explosion and leakage of oil. Those costs include the cost of protecting against such disasters, the cost of the cleanup effort, and the hard-to-calculate cost of damage to the company's image.

Different well types

File:NaturalGasWell.jpg

Fossil-fuel wells come in many varieties.
By produced fluid, there can be wells that produce oil, wells that produce oil and natural gas, or wells that only produce natural gas. Natural gas is almost always a byproduct of producing oil, since the small, light gas carbon chains come out of solution as they undergo pressure reduction from the reservoir to the surface, similar to uncapping a bottle of soda pop where the carbon dioxide effervesces. Unwanted natural gas can be a disposal problem at the well site. If there is not a market for natural gas near the wellhead it is virtually valueless since it must be piped to the end user. Until recently, such unwanted gas was burned off at the wellsite, but due to environmental concerns this practice is becoming less common.[citation needed] Often, unwanted (or 'stranded' gas without a market) gas is pumped back into the reservoir with an 'injection' well for disposal or repressurizing the producing formation. Another solution is to export the natural gas as a liquid.[7] Gas-to-liquid, (GTL) is a developing technology that converts stranded natural gas into synthetic gasoline, diesel or jet fuel through the Fischer-Tropsch process developed in World War II Germany. Such fuels can be transported through conventional pipelines and tankers to users. Proponents claim GTL fuels burn cleaner than comparable petroleum fuels. Most major international oil companies are in advanced development stages of GTL production, e.g. the 140,000 bbl/d (22,000 m3/d) Pearl GTL plant in Qatar, scheduled to come online in 2011. In locations such as the United States with a high natural gas demand, pipelines are constructed to take the gas from the wellsite to the end consumer.

Another obvious way to classify oil wells is by land or offshore wells. There is very little difference in the well itself. An offshore well targets a reservoir that happens to be underneath an ocean. Due to logistics, drilling an offshore well is far more costly than an onshore well. By far the most common type is the onshore well. These wells dot the Southern and Central Great Plains, Southwestern United States, and are the most common wells in the Middle East.

Another way to classify oil wells is by their purpose in contributing to the development of a resource. They can be characterized as:

* production wells are drilled primarily for producing oil or gas, once the producing structure and characteristics are determined
* appraisal wells are used to assess characteristics (such as flow rate) of a proven hydrocarbon accumulation
* exploration wells are drilled purely for exploratory (information gathering) purposes in a new area
* wildcat wells are those drilled outside of and not in the vicinity of known oil or gas fields.

At a producing well site, active wells may be further categorised as:

* oil producers producing predominantly liquid hydrocarbons, but mostly with some associated gas.
* gas producers producing almost entirely gaseous hydrocarbons.
* water injectors injecting water into the formation to maintain reservoir pressure or simply to dispose of water produced with the hydrocarbons because even after treatment, it would be too oily and too saline to be considered clean for dumping overboard, let alone into a fresh water source, in the case of onshore wells. Frequently water injection has an element of reservoir management and produced water disposal.
* aquifer producers intentionally producing reservoir water for re-injection to manage pressure. This is in effect moving reservoir water from where it is not as useful to where it is more useful. These wells will generally only be used if produced water from the oil or gas producers is insufficient for reservoir management purposes. Using aquifer produced water rather than water from other sources is to preclude chemical incompatibility that might lead to reservoir-plugging precipitates.
* gas injectors injecting gas into the reservoir often as a means of disposal or sequestering for later production, but also to maintain reservoir pressure.

Lahee classification [1]

* New Field Wildcat (NFW) – far from other producing fields and on a structure that has not previously produced.
* New Pool Wildcat (NPW) – new pools on already producing structure.
* Deeper Pool Test (DPT) – on already producing structure and pool, but on a deeper pay zone.
* Shallower Pool Test (SPT) – on already producing structure and pool, but on a shallower pay zone.
* Outpost (OUT) – usually two or more locations from nearest productive area.
* Development Well (DEV) – can be on the extension of a pay zone, or between existing wells (Infill).

Oil well life !

The creation and life of a well can be divided up into five segments:
  • Planning
  • Drilling
  • Completion
  • Production
  • Abandonment


Drilling
See also: Boring (earth)

The well is created by drilling a hole 5 to 36 inches (127.0 mm to 914.4 mm) in diameter into the earth with a drilling rig that rotates a drill string with a bit attached. After the hole is drilled, sections of steel pipe (casing), slightly smaller in diameter than the borehole, are placed in the hole. Cement may be placed between the outside of the casing and the borehole. The casing provides structural integrity to the newly drilled wellbore, in addition to isolating potentially dangerous high pressure zones from each other and from the surface.

With these zones safely isolated and the formation protected by the casing, the well can be drilled deeper (into potentially more-unstable and violent formations) with a smaller bit, and also cased with a smaller size casing. Modern wells often have two to five sets of subsequently smaller hole sizes drilled inside one another, each cemented with casing.
Mud log in process, a common way to study the lithology when drilling oil wells.

To drill the well

* The drill bit, aided by the weight of thick walled pipes called "drill collars" above it, cuts into the rock. There are different types of drill bit; some cause the rock to disintegrate by compressive failure, while others shear slices off the rock as the bit turns.
* Drilling fluid, a.k.a. "mud", is pumped down the inside of the drill pipe and exits at the drill bit. Drilling mud is a complex mixture of fluids, solids and chemicals that must be carefully tailored to provide the correct physical and chemical characteristics required to safely drill the well. Particular functions of the drilling mud include cooling the bit, lifting rock cuttings to the surface, preventing destabilisation of the rock in the wellbore walls and overcoming the pressure of fluids inside the rock so that these fluids don't enter the wellbore.
* The generated rock "cuttings" are swept up by the drilling fluid as it circulates back to surface outside the drill pipe. The fluid then goes through "shakers" which strain the cuttings from the good fluid which is returned to the pit. Watching for abnormalities in the returning cuttings and monitoring pit volume or rate of returning fluid are imperative to catch "kicks" early. A "kick" is when the formation pressure at the depth of the bit is more than the hydrostatic head of the mud above, which if not controlled temporarily by closing the blowout preventers and ultimately by increasing the density of the drilling fluid would allow formation fluids and mud to come up through the drill pipe uncontrollably.
* The pipe or drill string to which the bit is attached is gradually lengthened as the well gets deeper by screwing in additional 30-foot (9 m) sections or "joints" of pipe under the kelly or topdrive at the surface. This process is called making a connection. Usually, joints are combined into three joints equaling one stand. Some smaller rigs only use two joints and some rigs can handle stands of four joints.

This process is all facilitated by a drilling rig which contains all necessary equipment to circulate the drilling fluid, hoist and turn the pipe, control downhole, remove cuttings from the drilling fluid, and generate on-site power for these operations.
Modern driller Argentina.
[edit] Completion
Main article: Completion (oil and gas wells)

After drilling and casing the well, it must be 'completed'. Completion is the process in which the well is enabled to produce oil or gas.

In a cased-hole completion, small holes called perforations are made in the portion of the casing which passed through the production zone, to provide a path for the oil to flow from the surrounding rock into the production tubing. In open hole completion, often 'sand screens' or a 'gravel pack' is installed in the last drilled, uncased reservoir section. These maintain structural integrity of the wellbore in the absence of casing, while still allowing flow from the reservoir into the wellbore. Screens also control the migration of formation sands into production tubulars and surface equipment, which can cause washouts and other problems, particularly from unconsolidated sand formations in offshore fields.

After a flow path is made, acids and fracturing fluids are pumped into the well to fracture, clean, or otherwise prepare and stimulate the reservoir rock to optimally produce hydrocarbons into the wellbore. Finally, the area above the reservoir section of the well is packed off inside the casing, and connected to the surface via a smaller diameter pipe called tubing. This arrangement provides a redundant barrier to leaks of hydrocarbons as well as allowing damaged sections to be replaced. Also, the smaller crossectional area of the tubing produces reservoir fluids at an increased velocity in order to minimize liquid fallback that would create additional back pressure, and shields the casing from corrosive well fluids.

In many wells, the natural pressure of the subsurface reservoir is high enough for the oil or gas to flow to the surface. However, this is not always the case, especially in depleted fields where the pressures have been lowered by other producing wells, or in low permeability oil reservoirs. Installing a smaller diameter tubing may be enough to help the production, but artificial lift methods may also be needed. Common solutions include downhole pumps, gas lift, or surface pump jacks. Many new systems in the last ten years have been introduced for well completion. Multiple packer systems with frac ports or port collars in an all in one system have cut completion costs and improved production, especially in the case of horizontal wells. These new systems allow casings to run into the lateral zone with proper packer/frac port placement for optimal hydrocarbon recovery.
[edit] Production

The production stage is the most important stage of a well's life, when the oil and gas are produced. By this time, the oil rigs and workover rigs used to drill and complete the well have moved off the wellbore, and the top is usually outfitted with a collection of valves called a Christmas tree or Production trees. These valves regulate pressures, control flows, and allow access to the wellbore in case further completion work is needed. From the outlet valve of the production tree, the flow can be connected to a distribution network of pipelines and tanks to supply the product to refineries, natural gas compressor stations, or oil export terminals.

As long as the pressure in the reservoir remains high enough, the production tree is all that is required to produce the well. If the pressure depletes and it is considered economically viable, an artificial lift method mentioned in the completions section can be employed.

Workovers are often necessary in older wells, which may need smaller diameter tubing, scale or paraffin removal, acid matrix jobs, or completing new zones of interest in a shallower reservoir. Such remedial work can be performed using workover rigs – also known as pulling units or completion rigs – to pull and replace tubing, or by the use of well intervention techniques utilizing coiled tubing. Depending on the type of lift system and wellhead a rod rig or flushby can be used to change a pump without pulling the tubing.

Enhanced recovery methods such as water flooding, steam flooding, or CO2 flooding may be used to increase reservoir pressure and provide a "sweep" effect to push hydrocarbons out of the reservoir. Such methods require the use of injection wells (often chosen from old production wells in a carefully determined pattern), and are used when facing problems with reservoir pressure depletion, high oil viscosity, or can even be employed early in a field's life. In certain cases – depending on the reservoir's geomechanics – reservoir engineers may determine that ultimate recoverable oil may be increased by applying a waterflooding strategy early in the field's development rather than later. Such enhanced recovery techniques are often called "tertiary recovery".
[edit] Abandonment

A well is said to reach an "economic limit" when its production rate doesn't cover the expenses, including taxes.[5]

The economic limit for oil and gas wells can be expressed using these formulae:

Oil fields:
{EL}_{oil}=\frac{{WI}\times{LOE}}{{NRI}[{P_o}+({P_g}\times{GOR})/1,000]\times(1-{T})}
Gas fields:
{EL}_{gas}=\frac{{WI}\times{LOE}}{{NRI}[({P_o}\times{Y})+{P_g}]\times(1-{T})}
Where:
ELoil is an oil well's economic limit in oil barrels per month (bbls/month).
ELgas is a gas well's economic limit in thousand standard cubic feet per month (MSCF/month).
Po,Pg are the current prices of oil and gas in dollars per barrels and dollars per MSCF respectively.
LOE is the lease operating expenses in dollars per well per month.
WI working interest, as a fraction.[6]
NRI net revenue interest, as a fraction.
GOR gas/oil ratio as bbls/MSCF.
Y condensate yield as barrel/million standard cubic feet.
T production and severance taxes, as a fraction.
[5]

When the economic limit is raised, the life of the well is shortened and proven oil reserves are lost. Conversely, when the economic limit is lowered, the life of the well is lengthened.

When the economic limit is reached, the well becomes a liability and is abandoned. In this process, tubing is removed from the well and sections of well bore are filled with cement to isolate the flow path between gas and water zones from each other, as well as the surface. Completely filling the well bore with cement is costly and unnecessary. The surface around the wellhead is then excavated, and the wellhead and casing are cut off, a cap is welded in place and then buried.

At the economic limit there often is still a significant amount of unrecoverable oil left in the reservoir. It might be tempting to defer physical abandonment for an extended period of time, hoping that the oil price will go up or that new supplemental recovery techniques will be perfected. However, lease provisions and governmental regulations usually require quick abandonment; liability and tax concerns also may favor abandonment.

In theory an abandoned well can be reentered and restored to production (or converted to injection service for supplemental recovery or for downhole hydrocarbons storage), but reentry often proves to be difficult mechanically and not cost effective.

Oil Drilling History !

History


The earliest known oil wells were drilled in China in 347 CE. They had depths of up to about 800 feet (240 m) and were drilled using bits attached to bamboo poles.[1] The oil was burned to evaporate brine and produce salt. By the 10th century, extensive bamboo pipelines connected oil wells with salt springs. The ancient records of China and Japan are said to contain many allusions to the use of natural gas for lighting and heating. Petroleum was known as burning water in Japan in the 7th century.[2]

The Middle East's petroleum industry was established by the 8th century, when the streets of the newly constructed Baghdad were paved with tar, derived from petroleum that became accessible from natural fields in the region. Petroleum was distilled by the Persian alchemist Muhammad ibn Zakarīya Rāzi (Rhazes) in the 9th century, producing chemicals such as kerosene in the alembic (al-ambiq),[3][verification needed] and which was mainly used for kerosene lamps.[4] Arab and Persian chemists also distilled crude oil in order to produce flammable products for military purposes. Through Islamic Spain, distillation became available in Western Europe by the 12th century.[2]

Some sources claim that from the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan, to produce naphtha for the petroleum industry. These fields were described by Marco Polo in the 13th century, who described the output of those oil wells as hundreds of shiploads. When Marco Polo in 1264 visited the Azerbaijani city of Baku, on the shores of the Caspian Sea, he saw oil being collected from seeps. He wrote that "on the confines toward Geirgine there is a fountain from which oil springs in great abundance, inasmuch as a hundred shiploads might be taken from it at one time."


1904 oil well fire at Bibi-Eibat.

File:Oil well burning in Bibi Eibat.JPG

Shallow pits were dug at the Baku seeps in ancient times to facilitate collecting oil, and hand-dug holes up to 35 meters (115 ft) deep were in use by 1594. These holes were essentially oil wells. Apparently 116 of these wells in 1830 produced 3,840 metric tons (about 28000 barrels) of oil. Also, offshore drilling started up at Baku at Bibi-Eibat field near the end of the 19th century, about the same time that the first offshore oil well was drilled in 1896 at the Summerland Oil Field on the California Coast.

The earliest oil wells in modern times were drilled percussively, by hammering a cable tool into the earth. Soon after, cable tools were replaced with rotary drilling, which could drill boreholes to much greater depths and in less time. The record-depth Kola Borehole used non-rotary mud motor drilling to achieve a depth of over 12 000 meters (38,000 ft). Until the 1970s, most oil wells were vertical, although lithological and mechanical imperfections cause most wells to deviate at least slightly from true vertical. However, modern directional drilling technologies allow for strongly deviated wells which can, given sufficient depth and with the proper tools, actually become horizontal. This is of great value as the reservoir rocks which contain hydrocarbons are usually horizontal, or sub-horizontal; a horizontal wellbore placed in a production zone has more surface area in the production zone than a vertical well, resulting in a higher production rate. The use of deviated and horizontal drilling has also made it possible to reach reservoirs several kilometers or miles away from the drilling location (extended reach drilling), allowing for the production of hydrocarbons located below locations that are either difficult to place a drilling rig on, environmentally sensitive, or populated