test 2.6 Flashcards
what are the 5 stages of an oil field’s lifecycle
- exploration
- appraisal
- development
- production
- abandonment
describe the exploration phase of an oil field’s lifecycle
Involves geological, geochemical and geophysical surveys
Geoscientists predict where the oil and gas occur.
– Geology: Structural and stratigraphic studies
– Geochemistry: Chemistry of petroleum and its sources
– Geophysics: Gravity, magnetic and seismic methodologies
Existence of a working petroleum system is proved.
– Preliminary business and economic planning
– Define the optimal drilling location
Drilling starts after all
» geological,
» economic,
» political and
» environmental
conditions are considered and evaluated.
name the 5 type of wells
- wild cat
- exploratory
- appraisal (step out, delineation)
- developmental
- in-fill
what is a wild-cat well
- Drilled in an unexplored and unproven area - Might be “Dry Hole”
what is an exploratory well
Assess if a prospect comprises commercial amounts of hydrocarbon
what is an appraisal well
- step-out, delineation
- Determine the size of the field
– Assess the viability of the reservoir
what is a development well
Drilled in the known extent of the field to produce the hydrocarbon
what is an in-fill well
Drilled within the original drilled well patterns
what is the most expensive component in exploration and field development
drilling operations
what 3 groups are involved in drilling operations
- operating company
- outside driller contractor
- one or more service companies
what must be considered for each individual drilling operation
HSE
what are the drilling group’s activities
– Detailed well design, drilling rig selection
– Contractor evaluation and bid requests
– Risk assessment
– Ensuring safe, economic and on schedule operations
in most countries, land rights belong to who
the government
In the United States and parts of Canada, private land has which two separate types of ownerships?
- surface rights owner
- mineral rights owner
what is a lease
A legal document that grants the right to explore, drill and produce oil and gas during the life of the lease
what is a signing bonus
An up-front payment to the owner for granting the lessee a right to explore the property for a limited period of time
name the effects on the lease if petroleum is or isn’t found
- No exploration or no marketable hydrocarbon, Lease expires
– Commercial amounts of hydrocarbon, Lease is automatically extended
what is a royalty
A fraction of the gross revenue from production paid to the owner.
what is a concession agreement
- foreign contract
- Full control over exploration and production
- Liable for the entire costs and risks
- Pay bonuses, taxes, and royalties to the host country
- operator gets all the oil
what is a production sharing agreement (PSA)
- foreign contract
- Full control over exploration and production
- Liable for the entire costs and risks
- An agreed share of the gross production (cost oil) goes towards the costs.
- The remaining production (profit oil) is split between the company and the host country
what is a service contract
- foreign contract
- Contractor is paid a fee for specific services
what is a production contract
- foreign contract
- Contractor takes over an existing or underdeveloped field to improve production
- Portion of the increased production paid to the contractor
what are the 4 types of foreign contracts
- concession agreement
- production sharing agreement (PSA)
- service contract
- production contract
what is a joint operating agreement
- A single well or the development of a larger area
- Reduce the financial impact of a dry hole
- Cost share and production shares are defined and agreed
what is profit oil
oil that is split for profit in a psa
what is cost oil
oil that goes only to paying off the costs in a psa agreement
what is a support agreement
- another name is a contribution agreement
- find a partner to support you during operations
what are 3 different types of support agreements
Dry hole agreement
- Cash contribution towards a dry hole
- Receives the geological and drilling information
Bottom hole agreement
- Cash contribution to a certain well depth
- Receives the geological and drilling information
Acreage contribution agreement
- Property lease or interest contribution
- Receives the geological and drilling information
what are the 4 types of drilling contracts
Footage drilling contract
• Based on cost per foot to drill down to contract depth
Daywork contract
• Based on a cost per day to drill down to contract depth
Turnkey contract
• An exact cost to drill down to the contract depth
Combination contract
• Footage rate to a certain depth and daywork rate below that
what is a drilling spacing unit (DSU)
- A legally described boundary (a square or a rectangle area) around each well
- Typically 40 or 80 acres for oil wells and 640 acres for gas wells.
- Depends on the oil viscosity and reservoir permeability.
- Well can be off center but cannot be located on the edge.
what does the “allowable” government regulation mean
The maximum amount of production allowed from a single well, lease, or field during a specific unit of time.
describe the stages of a drilling plan
what is an AFE
authority for expenditure for drilling
how is a drilling site prepared
- Site is cleared of vegetation and leveled
- Pad for the drilling rig and other equipment is constructed
- Below-ground-level cellar is excavated
- Reserve pit and settling pits for water or drilling fluid (mud) discharges is built
what is rigging up
the erection of a drilling rig
name the roles on a drilling crew
- Company man/Rig Supervisor
- Tool Pusher
- Driller
- Derrick man
- Floormen (Rotary helpers, roughnecks)
- Mud Engineer (Mud Logger)
- Mechanics & Electricians
name the parts of a typical rig site
- personnel quarters
- drill rig
- pipe racks
- power
- mud system
