Geological exploration of oil (PETROLEUM) and

upstream processing
Introduction:

The exploration of hydrocarbons/oil comes under the branch of science called

exploration geophysics. It is the search by petroleum geologists for oil and gas beneath the
surface of earth. This involves seismology and many operations of mining engineering. The
whole process is a long one which needs a large crew and involves a lot of risks. Basically
the process starts with superficial observations for seepage and similar signs and ends up in
chemical process plants where the hydrocarbons are separated and conditioned for meeting
the required standards.

The petroleum industry is usually divided into three major components: Upstream,
midstream and downstream, though midstream operations are usually included in the
downstream category.

The upstream oil refers to the searching for and the recovery and production of crude
oil and natural gas. This includes the searching for potential underground or underwater oil
and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover
and bring the crude oil and/or raw natural gas to the surface. The upstream oil sector is also
known as the exploration and production (E&P) sector.

The downstream oil sector refers to the refining of crude oil, and the selling and
distribution of natural gas and products derived from crude oil. Such products include
liquefied petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil, other fuel oils, asphalt
and petroleum coke. This includes oil refineries, petrochemical plants, petroleum product
distribution, retail outlets and natural gas distribution companies.

This report presents an overview of the upstream oil exploration processes i.e.
exploration and production of petroleum.
 EXPLORATION OF PETROLEUM:
As already stated, the exploration of petroleum is the search by petroleum
geologists and geophysicists for hydrocarbon deposits beneath the Earth's surface. Onshore
exploration is easier than offshore exploration. Generally, visible surface features such as oil
seeps, natural gas seeps, pockmarks (underwater craters caused by escaping gas) provide
basic evidence of hydrocarbon generation. Seepage is an indicator of accumulations,
migration pathways or mature source kitchens.

SEEPAGE:

A good definition of a seep is ''the surface expression of a migration pathway, along which
petroleum is currently flowing, driven by buoyancy from a sub-surface origin'' (Clarke &
Cleverly, 1990).

Seepage information is a key piece of evidence

for reducing the risk on source presence in a
new basin as seeps originate by leakage from
buried oil and gas accumulations .At the most
basic level, this demonstrates that the basin
contains a generating source rock and hence a
viable petroleum system. Surface seepage was
associated with Sumatra (1885), Texas
(Spindletop, 1901), Oklahoma (1905), Persia
(Majid-I-Sulaiman, 1908), Venezuela

(Los Barroso, 1922), Iraq (Kirkuk, 1927), East Texas (1930), Bahrain (1932) and Kuwait .

In the offshore, seeping oil and gas are often easier to

detect due to the fact that oil is normally transported from the
sea-bed vent to the surface as oil- coated gas bubbles.

At the surface, the gas bubble bursts and the oil remains on
the surface as a thin oil film. In calm sea conditions, these can
often be viewed as beautiful, iridescent concentric shapes,
typically 0.5 to 1 metre in diameter, known as 'oil pancakes'.
As seepage continues over time, these coalesce to form larger
slicks that are detectable from aircraft.
Commonly observed leakage induced features include:
1. Biological build-ups at or near the sea floor

2. Mechanical disturbances in the shallow sediments, including pockmarks and mud

volcanoes.

3. Diagenetic alterations in the shallow sediments – most commonly carbonate precipitation.

4. Rock property variations due to the presence of hydrocarbons, including bright spots and
flat spots.

5. Hydrocarbon-related diagenetic zones (HRDZs).

6. Gas chimneys.

A number of techniques have been developed for mapping offshore seepage. Some of them
which are generally used are :

(a) SAR (synthetic aperture radar): Synthetic aperture radar (SAR) is a form of radar in
which multiple radar images are processed to yield higher resolution images than
would be possible by conventional means. It has the ability to image surface oil seeps
remotely with wide swath coverage (typically 100 x 100km scenes for ERS and 165 x
165kms for Radarsat Wide 1) and at low cost. Moreover, satellite data in free skies is
being continuously acquired, thus providing multi-temporal satellite data over any
area of the globe. Such repeat seeps provide the location for follow-up surface
sampling from which key geochemical information on the reservoir oil can be
obtained ahead of the drill. SAR satellites scan the oceans continuously on fixed polar
orbits. They have advantages over optical satellite systems, such as Landsat TM and
airborne systems in that they observe night and day and penetrate cloud cover. SAR
creates images of the sea surface detailing its morphology. Radar images map slicks
(flat patches of the surface) that can be related by analysis to petroleum seepage.
(b) ALF (airborne laser fluorosensor): an aircraft mounted ultra-violet laser is pulsed
at 50Hz onto the sea surface and any fluorescence caused by a thin oil film is detected\
and recorded.
(c) Hyper spectral scanner: An aircraft mounted detector records an image of the sea
surface for a selected range of light wavelengths, which are selected to highlight any
oil slicks. The AHS (Airborne Hyper spectral Scanner) instrument has near about 80
spectral bands covering the visible and near infrared (VNIR), short wave infrared
(SWIR), mid infrared (MIR) and thermal infrared (TIR) spectral range.

Most seepage mapping techniques provide only a snapshot of present day seepage. The SAR
technique requires multiple-coverage at different times to increase the chance of observing a
seep, which may only occur episodically. Analysis of seismic data can however reveal past
seepage phases. Seeped oil samples can be obtained by seabed coring or, in some cases,
sampling a surface slick.

SEISMIC SURVEYS :

Most of the world’s sedimentary basins do not have sufficiently good source rocks
to generate enough hydrocarbons to form commercial accumulations. When exploring in an
unproven region, it is most important to reduce the risk of insufficient source. If there is no
source, there can be no accumulation. To tackle these situations and to reduce risk,
Reflection seismic imaging of the subsurface is the main surveying tool used by exploration
companies. After the acquired data is processed, images of the subsurface geology are
produced. These images are interpreted to produce maps of the subsurface layers, which are
used to identify potential hydrocarbon traps.

Seismology is the scientific study of earthquakes and the propagation of elastic waves
through the Earth. The field also includes studies of earthquake effects, such as tsunamis as
well as diverse seismic sources such as volcanic, tectonic, oceanic, atmospheric, and artificial
processes (such as explosions).

Seismic waves are waves of force that travel

through the Earth or other elastic body, for
example as the result of an earthquake,
explosion, or some other process that imparts
forces to the body. Seismic waves are also
continually excited on Earth by the incessant
pounding of ocean waves and the wind. Seismic
waves are studied by seismologists, and
measured by a seismograph, which records the
output of a seismometer, or geophone. For
seismic studies of offshore oil reservoirs ,
hydrophones may give additional information.
The propagation velocity of the waves depends
on density and elasticity of the medium which is
penetrated.

Two types of reflection seismic surveys are used for hydrocarbon exploration.
 2D seismic imaging:-Separate seismic lines spaced from several hundred metres to
several kilometres are used to provide an indication of the subsurface structure at
relatively low cost. These are called 2D seismic lines.
 3D seismic imaging:-When the lines are spaced at 50m or less, continuous coverage,
or 3D seismic data is obtained. This data is processed to produce a uniformly sampled
 3D volume of data, which produces a much more accurate image of the subsurface
geology.
Some companies incorporate data from other survey types
types to refine their geological model.
These surveys can include gravity, magnetic and various seepage detection surveys.

Outline of Seismic survey technique

BASIC PRINCIPLE: Any medium that can support seismic wave propagation may be
described as having an impedance, which depends on velocity of the wave and density of the
material medium.
When a seismic wave encounters a boundary between two different materials with different
impedances, some of the energy of the wave will be reflected off the boundary, while some of
it will be transmitted through the boundary.
Amplitude is an important property of waves. After
reflection or refraction the wave undergoes
underg a change in amplitude
and this change gives an idea about sub-earth
sub structures. The
amplitude of the reflected wave is predicted by multiplying the
amplitude of the incoming wave by the seismic reflection
coefficient R,, determined by the impedance contrast
cont between the
two materials. Similarly, the amplitude of the incoming wave is
multiplied by the transmission coefficient to predict the amplitude
of the wave transmitted through the boundary. By observing
changes in the strength of reflectors, seismologists
seismolog can infer
changes in the seismic impedances. In turn, they use this A geophone
information to infer changes in the properties of the rocks at the
interface, such as density and elastic modulus.
For non-normal incidence (at an angle), a phenomenon known as mode conversion
occurs. Longitudinal waves (P-waves)
(P waves) are converted to transverse waves (S
(S-waves) and vice
versa. The transmitted energy will be bent, or refracted, according to Snell's law. The
expressions for the reflection and transmission coefficients are found
found by applying appropriate
boundary conditions to the wave equation.
The time it takes for a reflection from a particular boundary to arrive at the geophone
is called the travel time.. If the seismic wave velocity in the rock is known, then the travel
time
me may be used to estimate the depth to the reflector. For a simple vertically travelling
wave, the travel time t from the surface to the reflector and back is called the Two
Two-Way Time
(TWT) and is given by the formula

,
where d is the depth of the reflector and V is the wave velocity in the rock.
A series of apparently related reflections on several seismograms is often referred to as a
reflection event.. By correlating reflection events, a seismologist can create an estimated
cross-section of the geologic structure that generated the reflections. Interpretation of large
surveys is usually performed with programs using high-end
high end three dimensional computer
graphics.
 First of all, a seismic source is initiated which produces the waves. These waves travel
into the earth and are reflected back from the interfaces between different sub-layers.
These reflected energy waves are recorded over a predetermined time period (called the
record length). Recording the reflected waves is done using one or more seismometers. On
land, the typical seismometer used in a reflection experiment is a small, portable instrument
known as a geophone, which converts ground motion into an analog electrical signal. In
water, hydrophones, which convert pressure changes into electrical signals, are used. As the
seismometers detect the arrival of the seismic waves, the signals are converted to digital form
and recorded. The signals may then be displayed by a computer as seismograms for
interpretation by a seismologist. Typically, the recorded signals are subjected to significant
amounts of signal processing and various imaging processes before they are ready to be
interpreted.

Exploration on land

The exploration on land consists of mainly 2 kinds of crew

1. seismic land crew
2. camp personnel

The seismic Land Crew :

This consists mainly of the surveyors, layout and loading crew,
shooters and recorders and the pick up crew.
The contractor first determines the longitude and latitude
coordinates of the source and receiver lines using mobile GPS
stations. Source lines are lines which contain shot points .These
are the points on which shots are fired to initiate seismic waves.
Receiver lines are the lines on which there are receiver points
- points where the reflected waves are received and recorded
.The surveyors need to survey in shot and receiver points on
source and receiver lines. When a shot or receiver point is
reached, this position will be staked out or marked with the shot
or receiver station number and line number.
Once sufficient lines of shot and receiver points have
been surveyed in and shot holes have been drilled to the
appropriate depth, loaders put explosive charges into the shot
holes on the source lines (according to the project specification)
and the receiver stations will be laid out with geophone spreads
on the receiver lines. When corresponding shot and receiver
lines are ready, the shooters prepare a single shot hole ready for firing, whilst the recording
shack will be hooked up to the geophone spread laid on the corresponding receiver line to
record the reflected data. Once a charge is ready to be shot, the recording shack initiates the
shot hole firing sequence via a radio link and records the seismic data from the whole
geophone spread onto magnetic medium. Once a shot is completed, the shooters move to the
next shot hole and the shoot / record sequence begins again.
 These days vibrator crews or vibroseis have
replaced loaders & shooters. Vibrations are created by
the computer-coordinated vibration of hydraulically
controlled plates on vibrator trucks and the vibrator
trucks move from shot hole to shot hole on the
Receiver line spread of geophones on N. designated source line .
Africa desert crew Land surveys require crews to deploy the
hundreds or thousands of geophones necessary to
record the data. Most surveys today are conducted by
laying out a two-dimensional array of geophones together with a two-dimensional pattern of
source points. This allows the interpreter to create a three-dimensional image of the geology
beneath the array, so these are called 3D surveys. Less expensive survey methods use one-
dimensional lines of geophones that only allowed the interpreter to make two-dimensional
cross-sections. This is all about technical crew.

Assisting Crew : the supporting crew arranges for the catering, waste management and
disposal, camp accommodations, washing facilities, water supply, laundry in the main camp .
And then there are fly-camps which are temporary camps set up away from the main camp
on large land seismic operations, for example where the distance is too far to drive back to
the main camp with vibrator trucks. All of the crews vehicles (maintenance, fuel, spares etc),
security, possible helicopter operations, restocking of the explosive magazine, medical
support and many other logistical and support functions.

Marine Exploration

USE OF STREAMERS : Deep water marine surveys are conducted using vessels
capable of towing one or more seismic cables known as streamers. Modern 3D surveys use
multiple streamers deployed in parallel, to record data
suitable for the three-dimensional interpretation of the
structures beneath the sea bed. A single vessel may tow
anything up to 10+ streamers, each 6 km+ in length,
spaced 50–150 m apart. Hydrophones are deployed at
regular intervals within each streamer. These
hydrophones are used to record sound signals which are
reflected back from structures within the rock. To
accurately calculate where subsurface features are
located, navigator compute the position of both the
sound source and each hydrophone group which
records the signal. The positioning accuracy required is
achieved using a combination of acoustic networks,
compasses and GPS receivers (often used with a radio
correction applied call a differential GPS or DGPS).
OCEAN BOTTOM CABLES : Marine surveys can
also be conducted using sensors attached to an Ocean
Bottom Cable (OBC) laid out on the ocean bottom rather
than in towed streamers. Due to operational limitations,
most of these types of surveys are conducted in water
depths less than 70 meters, however OBC crews in recent
years have acquired 3D surveys in depths up to 2000
meters. One operational advantage is that obstacles (such as
platforms) do not limit the acquisition as much as they do
for streamer surveys. Most of the OBC surveys use dual
component receivers, combining a pressure sensor
(hydrophone) and a vertical particle velocity sensor
(vertical geophone). OBC surveys can also use four
components, i.e. hydrophone components plus the three orthogonal velocity sensors. Four
component OBC surveys have the advantage of being able to also record shear waves, which
do not travel through water. Multiple component OBC surveys hence can lead to improved
subsurface imaging. Ocean Bottom Cable surveys can also cost significantly more than
conventional streamer surveys over the same area. This additional cost is usually only
justified when the improved imaging is required for accurate reservoir delineation, or when
surface obstacles prevent a conventional streamer survey from being acquired in the area.

Drilling for oil

Once the collected data is sufficient to suggest the presence of hydrocarbons beneath
the place, the drilling works begin. It is necessary to drill a hole to obtain crude oil and
natural gas from under the earth's surface. The hole is made using a rotary drilling rig.

The Rotary Drilling Rig :

A drilling rig is a machine which creates holes
(usually called boreholes) and/or shafts in the ground.
Drilling rigs can be massive structures housing equipment
used to drill water wells, oil wells, or natural gas
extraction wells. They sample sub-surface mineral
deposits, test rock, soil and groundwater physical
properties and are also used to install sub-surface
fabrications, such as underground utilities,
instrumentation, tunnels or wells etc.
Drilling rigs can be mobile equipment mounted on trucks,
tracks or trailers, or more permanent land or marine-based
structures (such as oil platforms, commonly called
'offshore oil rigs' even if they don't contain a drilling rig).
The term "rig" therefore generally refers to the complex
of equipment that is used to penetrate the surface of the
earth's crust.

Working:
The rotary drilling rig uses a drill bit to cut through the earth and create a hole. As the hole
gets deeper, pipe is added to the drill bit to allow it to dig further. These lengths of drill pipe
form the drill string. This pipe is connected to an engine that turns the drill bit to cut the hole.
The rotary rig operates the same as a hand-held electric drill. The electric drill has a motor
that turns the drill bit and sufficient weight must be applied to keep the drill in contact with
the bottom of the hole.

Operations:

There are four main operations in a drilling rig: hoisting, rotating, circulating, and power.

(A)Hoisting:
The hoisting system is basically used to raise and lower pipe in and out of the hole
and to support the drill string to control the weight on the drill bit during drilling.
The hoisting system again consists of mainly 4 parts. These are derrick, traveling and
crown blocks, the drilling line, the drawworks.

(1)Derrick :
An oil derrick is designed for use in oil and natural gas production. It supports the drill bit,
pipe (drill string), travelling and crown blocks.
The basic oil derrick has an upright stationary section which is potentially capable of
supporting hundreds of tons of weight, combined with a movable boom which is used to raise
and lower equipment. Derricks of various designs have been in use for centuries to extract
valuable resources from under the Earth, and continue to be
widely used today.

Early derricks consisted of a framework which was

designed to hold a large pole used for percussive drilling,
which is accomplished by repeatedly beating the earth to
make a hole. A modern oil derrick typically uses a drill bit
which is capable of biting through the substrate, and cooled
with constant slurry of mud to prevent it from getting too
hot. Typically, as the drill bit sinks in, the hole is lined to
prevent a cave in. Once the drill reaches the oil, it is
withdrawn so that pumps and pipes can be inserted into the
hole to extract it.

In an area rich in oil, an oil derrick is designed to be a

permanent structure, and will continue to operate for many
years. Portable oil derricks are also used in less resource rich areas, or to make preliminary
explorations in areas of potential interest. In general, a portable oil derrick is not capable of
handling as much weight as a permanent one, which can be anchored to the ground and built
with heavy weight equipment since it does not have to be moved.

(2)Travelling and crown blocks :

The crown and traveling blocks are a set of pulleys that raise and lower the drill string. The
crown block is a stationary pulley located at the top of the derrick. The traveling block moves
up and down and is used to raise and lower the drill string. These pulleys are connected to the
drill string with a large diameter steel cable. The following figures show the blocks.

Crown-Block

Travelling-block
(3)The drilling line :
In a drilling rig, the drill line is a multi-thread, twisted wire rope that is threaded or reeved
through the travelling block and crown block to facilitate the lowering and lifting of the drill
string into and out of the wellbore. On larger diameter lines, tension strengths over a million
pounds are possible.

(4)Draw-works
The draw works contains a large drum around which the
drilling cable is wrapped. It consists of a large-diameter steel
spool, brakes, a power source and assorted auxiliary devices.
The primary function of the draw works is to reel out and reel
in the drilling line, a large diameter wire rope, in a controlled
fashion. The drilling line is reeled over the crown block and
travelling block to gain mechanical advantage in a "block and
tackle" or "pulley" fashion. This reeling out and in of the
drilling line causes the travelling block, and whatever may be
hanging underneath it, to be lowered into or raised out of the
wellbore. The reeling out of the drilling line is powered by
gravity and reeling in by an electric motor or diesel engine.

Working:
Hoisting is done by with the help of above mentioned components. The drilling line passes
through the travelling and crown blocks and is wound around the draw-works. The crown
block, which acts as the main pulley, is present at the top of the derrick and draws the drilling
line as per requirement. The travelling block, which connects this setup further to the drilling
string, is attached to the drilling line and moves vertically with it. The Derrick acts as a
backbone and supports the whole setup.

(B)ROTATING:
Rotation is performed with rotating equipment. Basically, it turns the drill bit. This equipment
consists of the swivel, the kelly, the rotary table, the drill pipe, the drill collars, and the
drilling bit. The term Drilling String is loosely applied to the assembled collection of the
drill pipe, drill collars, tools and drill bit.

(1)Swivel:
The swivel is attached to the bottom of the travelling block and permits the drill
string to rotate. The picture on the right shows a swivel.
(2)Kelly and Rotary Table:
The kelly is a square or hexagonal shaped section
of pipe that is attached to the swivel. The kelly fits  square type Kelly
in a matching slot in the rotary table. As the rotary
table turns the kelly is also turned. It rotates using
power from electric motors. The movement of the
kelly rotates the drill string and the drill bit.  hexagonal type kelly

(3)Drill string:
A drill string is a column or string of drill pipes that transmits drilling fluid (via the mud
pumps) and rotational power (via the kelly drive or top drive) to the drill bit. The term is
loosely applied as the assembled collection of the drill pipe, drill collars, tools and drill bit.
The drill string is hollow so that Drilling fluid can be pumped down through it and circulated
back up the annulus (void between the drill string and the formation).

Drill string components

The drill string is typically made up of 4 sections: Bottom hole
assembly (BHA), Transition pipe (Often Heavy Weight Drill
Pipe),Drill Pipe, Drill Stem subs.

Each section is made up of several components and joined

together using special threaded connections known as tool joints.

(a) Bottom hole assembly (BHA)

The BHA is made up of a drill bit which is used to break-up the

rock formations, drill collars which are heavy, thick-walled
tubular used to apply weight to the drill bit, and stabilizers which
keep the drilling assembly centred in the hole. The BHA may also
contain other components such as a down-hole motor, Rotary
Steerable System, measurement while drilling (MWD),
and logging while drilling (LWD) tools.
(b)Drill pipe

Drill pipe makes up the majority of a drill string. They are round steel tubes about 30 feet
long with a diameter of from 4 to 5 inches. A drill string is typically about 15,000 feet in
length for an oil or gas well vertically drilled onshore in the United States and may extend to
over 30,000 feet for an offshore deviated well. Drill pipe has threaded connections on each
end that allow the pipe to be joined together to form longer sections as the hole gets deeper.

(c)Transition pipe

Heavyweight drill pipe (HWDP) is used to make the transition between the drill collars and
drill pipe. The function of the HWDP is to provide a flexible transition between the drill
collars and the drill pipe. This helps to reduce the number of fatigue failures seen directly
above the BHA. A secondary use of HWDP is to add additional weight to the drill bit.

(d)Drill Stem Subs

Drill stem subs are used to connect drill string elements.

(e)Drill Bit:

The drilling bit is used to create the hole. Drilling bit sizes range from six
inches to three feet in diameter. The most common drill bits are roller cone
bits and diamond bits. Roller cone bits have three cones containing rows
of teeth. The cones rotate on bearings and turn as the drilling bit rotates.

The teeth cut and crush the rock to create the hole. The bit also contains
small nozzles that spray drilling fluids to remove the rock fragments from
the bottom of the hole. A drill bit

Diamond bits have a single fixed head that contains many small diamonds. As the bit turns
the diamonds cut the rock. Diamond bits also have nozzles to wash away the broken pieces of
rock. Different drilling bits are used depending on the type of rock that is encountered.

WORKING:
The rotary table rotates by drawing power from electric motors. The Kelly which fits into a
slot on the rotary table also rotates with it. The rotation of Kelly again rotates the drilling
string the bit. Due to the presence of teeth, the drilling bit cuts through the earth surface.
(C)CIRCULATION:
The drilling operation uses fluid to reduce friction and remove rock fragments or cuttings.
This also acts as a coolant which drains the massive amount of heat produced during drilling.

The circulating system pumps these drilling fluids down the hole, out of the nozzle in the
drilling bit, and returns them to the surface where the debris separate from the fluid.

Drilling fluid is also known as drilling mud because of its characteristic brown color. The
drilling mud is mixed in tanks. The mud is pumped through a hose to the swivel, down the
kelly and into the drill pipe. The mud goes down the drill string and gets out of the drill string
through the holes on the drill bit.
The cuttings are separated from the mud in a vibrating screen called a shale shaker. The
cuttings are trapped on the screen and the mud passes through the screen on to the mud pit.
The circulating pump picks up this clean mud and sends back down the hole. The cuttings are
collected in a plastic lined pit for disposal.

Drilling mud is a mixture of water, clay and special mineral and chemicals. Drilling mud
removes cutting from the hole and cools and lubricate the drilling bit. Mud also maintain
pressure inside the hole to keep the fluid in the formation from entering the hole and
producing a gusher of oil on the surface. Different muds are used during the drilling process
to adjust the rock formation, temperature and pressure.

(D)POWER:
A drilling rig needs power to operate the circulating, rotating, and hoisting systems. This
power comes from two or more diesel engines. Power is transmitted to the drilling rig from
either generators that provide electricity or mechanical drivers that use a series of pulleys and
belts to transmit power from the engines to the components that require the power.
The Drilling Crew:
Drilling is done by a service company or drilling contractor. The
drilling crew is composed of:-
 Tool pusher:-
The tool-pusher, the location supervisor for the drilling
contractor, is usually a senior, experienced individual who has
worked his way up through the ranks of the drilling crew
positions. His job is largely administrative, including ensuring
that the rig has sufficient materials, spare parts and skilled
personnel to continue efficient operations.

 Driller:-
The driller is the supervisor of the rig crew. The driller is responsible for the efficient
operation of the rig-site as well as the safety of the crew. He typically has many years of
rig-site experience and has worked his way up from other jobs. While the driller must
know how to perform each of the jobs on the rig, his or her role is to supervise the work
and control the major rig systems. The driller operates the pumps, draw-works, and
rotary table via the drillers console-a control room of gauges, control levers, rheostats,
and other pneumatic, hydraulic and electronic instrumentation. The driller also operates
the draw-works brake using a long-handled lever. Hence, the driller is sometimes
referred to as the person who is "on the brake.“

 Derrickman:-
The derrickman is in charge of the mud-processing area during periods of circulation.
The derrickman also measures mud density. The derrickman reports to the tool-pusher,
but is instructed in detail by the mud engineer on what to add to the mud, how fast and
how much. His other job is to handle pipe in the derrick while pulling out or running
into the hole. One of the rig crew members who gets his name from the fact that he
works on a platform attached to the derrick or mast, typically 85 ft [26 m] above the rig
floor, during trips. In a typical trip out of the hole, the
derrickman wears a special safety harness that enables him
to lean out from the work platform (called the monkey
board) to reach the drillpipe in the center of the derrick or
mast, throw a line around the pipe and pull it back into its
storage location (the fingerboards) until it is time to run the
pipe back into the well. In terms of skill, physical exertion
and perceived danger, a derrickman has one of the most
demanding jobs on the rig crew. Some modern drilling rigs
have automated pipe-handling equipment such that the derrick-man controls the
machinery rather than physically handling the pipe. In an emergency, the derrick-man
can quickly reach the ground by an escape line often called the Geronimo line.

 Motorman:-
The motorman is responsible for maintenance of the engines. While all members of the
rig crew help with major repairs, the motorman does routine preventive maintenance
and minor repairs.
 Roughnecks:-
A roughneck is a low-ranking member of the drilling crew. The roughneck usually
performs semiskilled and unskilled manual labor that requires continual hard work in
difficult conditions for many hours. After roughnecks understand how the rig operates
and demonstrates their work ethic, they may be promoted to other positions in the crew.

 Roustabouts :-
A roustabout is any unskilled manual laborer on the rig-site. A roustabout may be part
of the drilling contractor's employee workforce, or may be on location temporarily for
special operations. Roustabouts are commonly hired to do the peripheral tasks, ranging
from cleaning up location to cleaning threads to digging trenches to scraping and
painting rig components.
PRODUCTION OF OIL :

Production is the operation that brings hydrocarbons to the surface and prepares them for
processing. Production begins after the well is drilled. The mixture of oil, gas and water from
the well is separated on the surface. The water is disposed of and the oil and gas are treated,
measured, and tested. Production operations include bringing the oil and gas to the surface,
maintaining production, and purifying, measuring, and testing.

The various steps involved in productions are as below:-

CONSTRUCTION OF WELL:-
After a well has been drilled, it must be completed before oil and gas production can begin.
The first step in this process is installing casing pipe in the well.

Casing:- Casing is a pipe usually larger in diameter

and longer than drill pipe and is used to line the hole.
Casing that is cemented in place aids the drilling process
in several ways:

a) Prevent contamination of fresh water well zones.

b) Prevent unstable upper formations from caving-in and

sticking the drill string or forming large caverns.

c) Provides a strong upper foundation to use high-density

drilling fluid to continue drilling deeper.

d) Isolates different zones (that may have different

pressures or fluids - known as zonal isolation) in the
drilled formations from one another.

e) Seals off high pressure zones from the surface, avoiding potential for a blowout

f) Prevents fluid loss into or contamination of production zones.

g) Provides a smooth internal bore for installing production equipment

A slightly different metal string, called production tubing, is usually used without cement in
the smallest casing of a well completion to contain production fluids and convey them to the
surface from an underground reservoir.

Oil and gas oil usually require four concentric casings:-

1) Conductor pipe
2) Surface casing
3) Intermediate casing
 4) Production casing

The conductor casing serves as a support during

drilling operations, to flowback returns during
drilling and cementing of the surface casing,
and to prevent collapse of the loose soil near the
surface. It can normally vary from sizes such as
18" to 30".

The purpose of surface casing is to isolate

freshwater zones so that they are not
contaminated during drilling and completion.
Surface casing is the most strictly regulated due
to these environmental concerns, which can
include regulation of casing depth and cement
quality. A typical size of surface casing is 13⅜".

Intermediate casing may be necessary on longer

drilling intervals where necessary drilling mud
weight to prevent blowouts may cause a
hydrostatic pressure that can fracture deeper
formations. Casing placement is selected so that
the hydrostatic pressure of the drilling fluid
remains between formations pores and fracture
pressures.

The final interval is production casing. As with

the casing intervals described above, the
production casing string extends to the surface where it is hung off. As the smallest casing, it
will former the outer boundary of the 'A' annulus, which may involve it being used for gas lift
and well kills. A typical size is 9⅝". The production casing or oil string is the final and innermost
casing for most wells. The production casing completely seals off the producing formation from water
aquifers

The production casing runs to the bottom of the hole or stops just above the production zone.
Usually, the casing runs to the bottom of the hole. The casing and cement seal off the
reservoir and prevent fluids from leaving. In this case the casing must be perforated to allow
liquids to flow into the well. This is a perforated completion. Most wells are completed by
using a perforated completion. Perforating is the process of piercing the casing wall and the
cement behind it to provide openings through which formation fluids may enter the wellbore.

In order to reduce cost, a liner may be used which extends just above the shoe (bottom) of the
previous casing interval and hung off downhole rather than at the surface. It may typically be
7", although many liners match the diameter of the production tubing.

Few wells actually produce through casing, since producing fluids can corrode steel or form
deposits such as asphaltenes or paraffins and the larger diameter can make flow unstable.
Production tubing is therefore installed inside the last casing string and the tubing annulus is
usually sealed at the bottom of the tubing by a packer. Tubing is easier to remove for
maintenance, replacement, or for various types of workover operations. Tubing is
significantly lighter than casing and does not require a drilling rig to run in and out of hole;
smaller pulling units are used for this purpose.

TUBE AND PACKERS:-

After cementing the production casing, the completion
crew runs a final string of pipe called the tubing. The
well fluids from the reservoir to the surface through the
tubing. Tubing is smaller in diameter than casing. The
outside diameter ranges from about 1 to 4-1/2 inches.

A packer is a ring made of metal and rubber that fits

around the tubing. It provides a secure seal between
everything above and below where it is set. It keeps
well fluids and pressure away from the casing above it.
Since the packer seals off the space between the tubing
and the casing, it forces the formation fluids into and up
the tubing.

Surface safety valve:- A subsurface safety valve is

installed in the tubing string near the surface. The valve
remains open as long as fluid flow is normal. When the
valve senses something amiss with the surface equipment of the well, it closes, preventing the
flow of fluids.

WELL HEAD:-
The wellhead includes all equipment on the surface that supports
the various pipe strings, seals off the well, and controls the paths
and flow rates of reservoir fluids.

They consist of:

1. Casing heads
2. Casing hanger
3. Tubing head
4. Tubing hanger
5. Christmas tree

The various parts are discussed as below:-

CASING HEAD:-
Casing head is heavy steel fitting at the surface, from which each string of casing usually
hangs. Metal and rubber seals in the casing head prevent fluids from moving within the
wellhead or escaping to the atmosphere. Each casing head also has a place for a pressure
gauge to warn of leaks. The lowest part of the wellhead is almost always connected to the
surface casing string, and provides a means of suspending and packing off the next casing
string. Providing attachment to the surface casing string through the type of bottom
connection (Slip-on-weld, threaded, Sliploc), the casing head is typically qualified to
withstand up to 10,000 psi working pressure. It suspends the casing and packs off the next
casing string while providing annular outlets, as well as supporting the BOP while drilling the
remaining stages.

CASING HANGER:-
The casing hanger is that portion of a wellhead assembly which provides
support for the casing string when it is lowered into the wellbore. It serves to
ensure that the casing is properly located. When the casing string has been
run into the wellbore it is hung off, or suspended, by a casing hanger, which
rests on a landing shoulder inside the casing spool. Casing hangers must be
designed to take the full weight of the casing, and provide a seal between the
casing hanger and the spool.

TUBING HEAD:-
The tubing head supports the tubing string, seals off pressure between the
casing and the inside of tubing and provides connections at the surface to
control the flowing liquid or gas. The tubing head often stacks above the uppermost casing head. Like
the casing heads, it has outlets to allow access to the annulus for gauging pressure or connecting
valves and fittings to control the flow of fluids.

CHRISTMAS TREE:-
Wells are equipped with a group of valves and fittings called a Christmas
tree. The valves and fittings are used to regulate, measure, and direct the
flow of hydrocarbons from the well.
Gauges measure pressure in the casing and in the tubing. Valves control
the flow of hydrocarbons from the well. The choke controls the rate of
production from the well.
START OF FLOW

Before oil production can begin the drilling mud must be removed from inside the casing.
Salt water is pumped into the tubing to remove this mud. In some cases the well has too much
salt water in the tubing and some must be pumped out. Production flow can also be started
by forcing high-pressure gas into the tubing.

Sometimes after starting the flow the well does produce at a fast enough rate. In this situation,
flow from the reservoir may be increased by stimulation. Stimulation is one of several
processes that enlarge or create channels in the reservoir rock so that the oil and gas can
move through it and into the well.

Gas wells are generally completed in the same way as oil wells except that natural gas usually
flows without help from the well.

Drive mechanisms:

(a)Natural drive:
After the well has been completed, the hydrocarbons flow from the reservoir to the surface.
In the first stage of a reservoir's producing life, pressure from the reservoir forces the
hydrocarbons from the pores in the formations, moves them to the well, and up to the surface.
This stage of production is known as primary recovery. The three principal primary recovery
drive mechanisms are water drive, gas drives, and gravity drainage.

Water drive uses the pressure exerted by water below

the oil and gas in the formation to force hydrocarbons
out of the reservoir. Greater the depth of the reservoir,
higher is the pressure. Water drive is the most efficient
natural drive and can be used to produce 50% or more of
the oil in the reservoir.

The two types of gas drives are dissolved-gas drives and

gas-cap drives. These drives use the pressure of gas in
the reservoir to force oil out of the reservoir and into the
well. In a dissolved-gas drive the hydrocarbons in the oil
are light enough that they become gaseous when the well releases pressure from the reservoir.
This is similar to dissolved carbon dioxide in a soft drink. If the can or bottle is shaken, the
soda gushes out when the can is opened. When the well is opened the lighter hydrocarbons
turn into gases and the oil and gas flow up to the surface. The amount of oil recovered from
dissolved-gas drives varies from 5 to 30%.

In some reservoirs, gas may be present in a space on top of the oil. This gas cap provides
pressure to push the oil into the well. As the level of oil in the reservoir drops, the gas cap
expands and continues to push the oil into the well and up to the surface. The more space the
oil leaves empty in the porous reservoir rock, the more the gas expands to take its place. The
pressure of a gas-cap drive depletes more slowly than a dissolved gas drive. From 20 to 40%
of the oil in the reservoir is recovered with gas-cap drives.

(b)Artificial Lift:

Artificial lifting methods are used when the pressure from natural reservoir drive decreases to the
point where the well stops producing. Artificial lift uses pumps and gas
injection.

The most common method of pumping oil in land-based wells is beam

pumping. The beam pumping unit sits on the surface and creates an up-and-
down motion to a string of rods called sucker rods. The top of the sucker rod
string is attached to the front of the pumping unit and hangs down inside the
tubing. A sucker rod pump is located near the bottom of the well. The
walking beam's reciprocating action moves the rod string up and down to
operate the pump.

Gas lift describes methods in which a gas is used to increase oil well production. Gas lift-dissolved-
gas drive or gas-cap drive may provide natural drive to the reservoir. Natural gas can also be injected
into the well to lift the oil artificially on the same principle.
The natural gas makes oil in the wellbore column much lighter in weight. Because the liquid column
is lighter, it exerts less pressure on the bottom of the well. With the pressure lower at the bottom, the
pressure remaining in the reservoir becomes sufficient to push reservoir fluids to the surface through
the tubing. Gas lift is common when a supply of gas is economical and available and when the amount
of petroleum it will lift justifies the expense.

Various artificial technologies are:-

Hydraulic pumping systems

Hydraulic pumping systems transmit energy to the bottom of the well by means of
pressurized power fluid that flows down in the wellbore tubular to a subsurface pump. There
are two types of hydraulic subsurface pumps, a) a reciprocating piston pump, where one is
powered by the injected fluid while the other pumps the produced fluids to surface, b) a jet
pump, where the injected fluid passes through a nozzle creating a jet effect pushing the
produced fluids to surface.
These systems are very versatile and have been used in shallow depths (1000ft) to deeper
wells (18,000ft), low rate wells with production in the 10’s of barrels per day to wells
producing in excess of 10,000 barrels per day (1,600 m³/d). In addition to this certain fluids
can be mixed in with the injected fluid to help deal or control with corrosion, paraffin and
emulsion problems. They are also suitable for wells where conventional pumps such as the
rod pump are not possible due to crooked or deviated wells.
These systems have also some disadvantages. They are sensitive to solids and it is the least
efficient lift method. While typically the cost of deploying these systems has been very high,
new coiled tubing umbilical technologies are in some cases greatly reducing the cost.

ESP
Electric Submersible Pumps consist of a) a downhole pump, which is a series of centrifugal
pumps, b) a separator or protector, which function is to prevent that produced fluids enter the
electrical motor, c) the electrical motor, which transforms the electrical power into kinetic
energy to turn the pump, and d) an electric power cable that connects the motor to the surface
control panel. ESP is a very versatile artificial lift method and can be found in operating
environments all over the world. They can handle a very wide range of flow rates (from 200
to 90,000 barrels per day) and lift requirements (from virtually zero to 10,000 ft (3,000 m) of
lift). They can be modified to handle contaminants commonly found in oil, aggressive
corrosive fluids such as H2S and CO2, and exceptionally high downhole temperatures.
Increasing water cut has been shown to have no significant detrimental effect on the ESP
performance. It is possible to locate them in vertical, deviated, or horizontal wells, but it is
recommended to deploy them in a straight section of casing for optimum run life
performance. Although latest developments are aimed to enhance the ESP capabilities to
handle gas and sand, they still need more technological development to avoid gas locked and
internal erosion. Until recently, ESP's have come with an often prohibitive price tag due to
the cost of deployment which can be in excess of $20,000.

Gas Lift
Gas Lift is another widely used artificial lift method. As the name denotes, gas is injected in
the tubing to reduce the weight of the hydrostatic column, thus reducing the back pressure
and allowing the reservoir pressure to push the mixture of produce fluids and gas up to the
surface. The gas lift can be deployed in a wide range of well conditions (up to 30,000 bpd and
down to 15,000 ft). They handle very well abrasive elements and sand, and the cost of work
over is minimum. The gas lifted wells are equipped with side pocket mandrel and gas lift
injection valves. This arrangement allows a deeper gas injection in the tubing. The gas lift
system has some disadvantages. There has to be a source of gas, some flow assurance
problems such as hydrates can be triggered by the gas lift.

PCP
Progressing Cavity Pumps, PCP, are also widely applied in the oil industry. The PCP consists
of a stator and a rotor. The rotor is rotated using either a top side motor or a bottom hole
motor. The rotation created sequential cavities and the produced fluids are pushed to surface.
The PCP is a flexible system with a wide range of applications in terms of rate( up to 5,000
bpd and 6,000 ft). They offer outstanding resistance to abrasives and solids but they are
restricted to setting depths and temperatures. Some components of the produced fluids like
aromatics can also deteriorate the stator’s elastomer.

Rod Pumps
Rod Pumps are large cylinders with both fixed and moveable elements inside. The most
important components are: the barrel, valves (traveling and fixed) and the piston. It also has
another 18 to 30 components which are called "fitting". The pump is designed to be inserted
inside the tubing of a well and its main purpose is to gather fluids from beneath it and lift
them to the surface.

Components
Every part of the pump is important for its correct operation. The most commonly used parts
are described below:
- Barrel: The barrel is a large cylinder which can be from 10 to 36 feet long and
a diameter from 1.25 to 3.75 inches (95 mm). After using several materials for its
construction, the API (American Petroleum Institute) standardized the use of 2 materials or
compositions for this part which are carbon steel and brass, both with an inside coating
of chrome. The advantage of brass against carbon steel, weather is a more soft material, is its
100% resistance to corrosion.
- Piston/Plunger: This is a nickel-metal sprayed steel cylinder, that goes inside the barrel. Its
main purpose is to create a sucking effect that lift the fluids beneath it and then, with the help
of the valves, take that fluids above it and, progressively, out of the well. It achieves this with
a reciprocal up and down movement.
- Valves: The valve has two components - the seat and the ball - which create a complete seal
when closed. After trying several materials, the most commonly used seats are made of
carbon nitride and the ball is often made of silicon nitride. In the past, balls of iron, ceramic
and titanium were used. This last type of balls, made of titanium, are still being used but only
where crude oil is extremely dense and/or the quantity of fluids is too much. The most
common configuration of a rod pump, requires two valves, called the traveling valve and
fixed or static valve.
- Piston rod: This is a rod that connects the piston with the outside of the pump. Its main
purpose is to transfer the energy produced by the "Nodding Donkey" above in an up/down
reciprocal movement.
- Fitting: The rest of the parts of the pump is called fitting and is, basically, small pieces
designed to keep everything hold together in the right place. Most of these parts, are designed
to let the fluids pass uninterrupted.
- Filter: The job of the filter, as guessed, is to stop big parts of rock, rubber or any other
garbage that might be loose in the well from going into the pump. There are several types of
filters, being a common iron cylinder with enough holes in it to permit the entrance of the
amount of fluid the pump needs the most commonly used.

(c)ENHANCED OIL RECOVERY :

After a well has used up the reservoir's natural drives and gas lift or pumps have recovered all
the hydrocarbons possible, statistics show that 25 to 95% of the original oil in the reservoir
may still be there. This amount of oil can be worth recovering if prices are high enough. The
major methods of improved oil recovery are water-flooding, gas injection, chemical
flooding, and thermal recovery. These techniques are used when production from the well
starts to decrease.

Water-flooding is a technique where water is injected into the formation using wells that
have ceased production. The injected water enters the reservoir and displaces some of the
remaining oil toward producing wells in the same reservoir. The producing wells then pump
up the oil and water. Several injection wells surround each producing well. Water flooding is
the least expensive and most widely used secondary recovery method.
Production can also be increased by injecting gas, such as natural gas or nitrogen, into the
reservoir. The injected gas expands to force additional volumes of oil to the surface.
Chemical flooding uses special chemicals in water to push oil out of the formation. These
chemicals act as surfactants that cause the oil and water to mix and break the oil into tiny
droplets that can be more easily moved through the reservoir to the well.

Thermal recovery is used when the oil is so viscous, or thick, that it cannot flow through the
reservoir and into a well. When the oil is heated, its viscosity is decreased and the flow
increases. Recovery techniques that use heat are called thermal processes or thermal
recovery.

Steam Drive or steam

injection involves generating steam
on the surface and forcing this steam
down injection wells and into the
reservoir. When the steam enters the
reservoir, it heats up the oil and
reduces its viscosity. The heat from
the steam also causes hydrocarbons to
form gases which also increases
flow. The gases and steam provide
additional gas drive and the hot water
also moves the thinned oil to
production wells.

Another way to use heat in a reservoir is fire flooding, or in situ (in-place) combustion. In
fire flooding, the crew ignites a fire in place in the reservoir. They inject compressed air
down an injection well and into the reservoir. A special heater in the well starts a fire. As the
fire burns, it begins moving through the reservoir toward production wells. Heat from the fire
thins out the oil around it, causes gas to vaporize from it, and changes water in the reservoir
to steam. Steam, hot water, and gas, all act to drive oil in front of the fire to production wells.
Microbial injection
Microbial injection is part of microbial enhanced oil recovery and is presently rarely used,
both because of its higher cost and because the developments in this field are more recent
than other techniques. Strains of microbes have been both discovered and developed (using
gene mutation) which function either by partially digesting long hydrocarbon molecules, by
generating bio-surfactants, or by emitting carbon dioxide .

Three approaches have been used to achieve microbial injection. In the first approach,
bacterial cultures mixed with a food source (a carbohydrate such as molasses is commonly
used) are injected into the oil field. In the second approach, used since 1985, nutrients are
injected into the ground to nurture existing microbial bodies; these nutrients cause the
bacteria to increase production of the natural surfactants they normally use to metabolize
crude oil underground. After the injected nutrients are consumed, the microbes go into near-
shutdown mode, their exteriors become hydrophilic, and they migrate to the oil-water
interface area, where they cause oil droplets to form from the larger oil mass, making the
droplets more likely to migrate to the wellhead. This approach has been used in oilfields near
the Four Corners and in the Beverly Hills Oil Field in Beverly Hills, California.

The third approach is used to address the problem of paraffin components of the crude oil,
which tend to separate from the crude as it flows to the surface. Since the Earth's surface is
considerably cooler than the petroleum deposits (a temperature drop of 13-14 degree F per
thousand feet of depth is usual), the paraffin's higher melting point causes it to solidify as it is
cooled during the upward flow. Bacteria capable of breaking these paraffin chains into
smaller chains (which would then flow more easily) are injected into the wellhead, either near
the point of first congealment or in the rock stratum itself.

Thus these are a few processes by which the oil can be recovered to maximum possible
extent.

TRANSPORTATION OF OIL
Crude oil must be moved from the production site to refineries and from refineries to
consumers. These movements are made using a number of different modes of transportation.
Crude oil and refined products are transported across the water in barges and tankers. On
land crude oil and products are moved using pipelines, trucks, and trains.
Waterborne Transportation

Crude oil tankers are used to transport crude oil from fields in the Middle East, North Sea,
Africa, and Latin America to refineries around the world. Product tankers carry refined
products from refineries to terminals.

Tankers range in size from the small vessels used to transport

refined products to huge crude carriers. Tanker sizes are expressed
in terms of deadweight (dwt) or cargo tons. The smallest tankers
are General Purpose which range from 10 to 25,000 tons.

These tankers are used to transport refined products. The Large

Range and Very Large Crude Carriers (VLCC) are employed in international crude oil trade.
The size of tanker that can be used in any trade (commercial voyage between a port of origin
and destination) is dependent on the tanker's length and loaded depth and the size of the
loading and unloading ports.

Land transportation

Pipelines are the most efficient method to transport crude oil and refined products. Pipelines
are used to move crude oil from the wellhead to gathering and processing facilities and from
there to refineries and tanker loading facilities. Product pipelines
ship gasoline, jet fuel, and diesel fuel from the refinery to local
distribution facilities.

Crude oil is collected from field gathering systems consisting of

pipelines that move oil from the wellhead to storage tanks and
treatment facilities where the oil is measured and tested. From the
gathering system the crude oil is sent to a pump station where the
oil delivered to the pipeline.

The pipeline may have many collection and delivery points along route. Booster pumps are
located along the pipeline to maintain the pressure and keep the oil flowing. The delivery
points may be refineries, where the oil is processed into products, or shipping terminals,
where the oil is loaded onto tankers.

A pipeline may handle several types of crude oil. The pipeline will schedule its operation to
ensure that the right crude oil is sent to the correct destination. The pipeline operator sets the
date and place when and where the oil is received and the when the oil will arrive at its
destination. Crude oil may also move over more than one pipeline system as it journeys from
the oil field to the refinery or shipping port. Storage is located along the pipeline to ensure
smooth continuous pipeline operation.

After crude oil is converted into refined products such as

gasoline, pipelines are used to transport the products to
terminals for movement to gasoline stations. In addition to
gasoline, products pipelines are used to ship diesel fuel, home
heating fuel, kerosene, and jet fuel. Because product pipelines
are used to move many different products, the different types of products are shipped
in batches.

Batching is used to move two or more different liquids through the same pipeline. The liquid
are transported in a series of batches. The adjoining batches mix where they come into
contact. This mixed stream may be sent to refinery for re-refining, sold as a lower valued
product such as a mixture of premium unleaded gasoline with regular unleaded gasoline, or
sold as mixture. Many product pipelines have standard product specifications. This allows
one company to ship gasoline over the line and get not be concerned whether he receives
gasoline from that same batch. Its all the same quality. Individual additive packages are
added at the distribution terminals.

Finally the converted and processed products find their way to the market.

ECONOMY:
Drilling costs:

The drilling company operates in accordance with a contract which specifies that the well
will be drilled to a specific depth. The contractor is paid on a per day or per foot drilling rate.

In 2006 it cost $2.238 million to drill an oil well and $1.936 million to drill a natural gas well.
The average cost to drill a well was $324/foot of depth.

The average cost to find and develop an oil and gas property in the United States was
$17.01/BOE from 2005-2007. The cost for onshore development was $13.38/BOE and for
offshore development was $49.54/BOE. BOE is the barrels of oil equivalent.

Drilling costs have increased as oil prices have and drilling activity have risen. In 2000,
when oil prices were $26.72 /B, drilling costs were $593 thousand per oil well and
$126/foot. For 2006, when prices averaged $59.69/B, drilling costs were $2.238 million per
oil well and $402/foot.

Production costs:

Production or lifting costs are the expenses associated with bringing oil and gas from the
reservoir to the surface, separating the oil from any associated gas, and treating the produced
oil and gas to remove impurities such as water and hydrogen sulfide.

Worldwide lifting costs have been increasing since 2001 and U.S. costs have been higher
than foreign cost since 2004. In 2007, U.S. production costs were $11.25/barrel of oil
equivalent (BOE) and foreign costs averaged $8.88/BOE. These figures include production
taxes of $2.90/BOE in the United States and $2.41/BOE internationally.
Shipping costs:
 BIBLIOGRAPHY

1) www.petrostrategies.com
2) www.npagroup.com
3) www.wikipedia.org
4) www.explorationist.com
5) www.dme.qld.gov.au
6) www.fmctechnologies.com
7) www.glossary.oilfield.slb.com
8) www.howstuffworks.com