This may not be the
easiest and cheapest thing to do for most people; but, in a few steps, anyone
who has the resources and the desire can do it and make a lot of money (and we
all know that!). So here are a few steps needed to drill a well in order to extract oil or gas.
1.
Find
where the oil is
As
we warned, this is easier said than done. It requires an experienced geologist
– one who is well-acquainted with petrology, in particular – to know where the
stash can be found. It is literally a treasure hunt, if you wish to see it that
way. You cannot simply use a divining stick or some mystical process to discover
the location. It requires high-tech tools and a lot of exploratory surveys and
drillings before one can truly evaluate the nature of the deposit. And then,
you will have to determine how much volume the deposit can produce in order to
be commercially viable to extract.
2.
Rent
a drill rig
A
drill rig can run up to about $100,000-Millions for each day of use. Nothing
comes cheap in this big-time industry!
But before you quit, you can consider looking for a partner who will be eager
to cover the cost for you. Plus, there could be rig owners who might be
interested to partner with and might be open to some concessions on the rental
price or a cut in the
business. For that, you can call on TEG for some investment
consultancy help.
3.
Drill
a well hole
Some
wells will take two months to complete at a rough cost of $15 million,
including the well casing. This should give you an idea as to what exactly you
are entering into before you finally go for it. Until you see what is
underneath, you cannot have a clear picture of what you will be getting. As in
most business ventures, the risks are real; but the rewards can be high for
such high stakes industries as oil and gas exploration and production.
4.
Run
casing and concrete-lining
This
step involves protecting the well hole with a steel casing that is surrounded
with poured concrete in order to provide stability, prevent contamination as
well as avoid affecting freshwater aquifers nearby. The casing is often made up
of decreasing series of pipes which are connected with couplings until you go
down to the 4.5-inch production liner which is what extracts and conveys the
raw oil and gas from their source underneath.
5.
Run
the completion
This
final step involves completing the well at an estimated cost of another $15
million. This requires installing a hundred or more pieces of equipment into
the production liner in order to implement the whole project and begin
extracting and producing oil and gas.
Drilling oil and gas
is both an expensive science and art and, in most cases, very much like a game
of cards which requires a lot of luck to make a winning. But there are a few
adventurers out there who would rather bet their money on the prospect of
hitting oil instead of toppling casino operators at their game.
Just a reminder though
for beginners: Drilling does not guarantee barrels of “black gold” flowing out
of your production liners. With the increasing understanding of oil exploration
processes and the available technology to support them, however, the success
rate of hitting oil has greatly increased. A 50-50 chance is considered a
good-enough measure for many to go ahead and drill. Many a gambler has risked
body and soul on lesser odds. But as we said, lady luck plays a big role in
this “high stakes game”. The best bet is to forget the odds entirely.
Sensational and extraordinary things do come for those upon whom the
unpredictable “lady of the well” smiles.
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