Monday, July 13, 2009

Searching for Oil: Drill Site

In the Colorado Energy industry, the drill site (or, the location of the well,) varies as the surface geography of the Earth itself varies. In the early days of the oil industry, geologists and wildcatters were able to find oil and gas in places that were generally accessible. As people began to use more and more hydrocarbons, however, the oil industry extended its search for oil and gas to all corners of the globe. Today, companies drill wells in frozen wildernesses, remote deserts, mosquito-ridden marshes, hot and humid jungles, tall and rugged mountains, and deep offshore waters. In short, a drill site is anywhere oil and gas exist or may exist.

The operating company decides where to drill by considering several factors. The most important is that the company knows or believes that hydrocarbons exist in the rocks beneath the site. In some cases, the operator drills a well in an existing field to increase production from it. In other cases, the operator drills a well on a site where no one has found oil or gas before. The company often hires geologists to find promising sites where no production exists. Geologists explore areas to try to determine where hydrocarbons may exist. Major companies sometimes have a staff of geologists; independents often hire consulting geologists or buy information from a company that specializes in geological data.

Legal and economic factors are also very important in the selection of a drilling site. For example, the company must obtain the legal right to drill for and produce oil and gas on a particular piece of land. Further, the company must have money to purchase or lease the right to drill and produce. What’s more, it must have money to pay for the costs of drilling. The costs of obtaining a lease and drilling for oil or gas on the lease vary considerably. Costs depend on such factors as the size of the reservoir, its depth, and its location (offshore and remote sites cost more to drill and produce than readily accessible land sites). A company can easily commit several million dollars to find, drill for, and produce oil and gas. Thus, creating Colorado energy and money. The rewards, of course, can be great, but so can the expenses.

The operating company takes several steps before telling the drilling contractor exactly where to place the rig and start, or ‘spud’, the hole. The Heartland Energy company carefully reviews and analyzes seismic records. Legal experts thoroughly examine lease terms and agreements. They ensure that the operating company has clear title and right-of-way to the site. Surveyors establish and verify exact boundaries and locations. The company also confirms that it has budgeted the necessary drilling funds and that the funds are available.

On land, operating personnel usually try to choose a spot directly over the reservoir. With luck, the surface will be accessible and reasonably level. They also try to pick a location that will not suffer too much damage when the contractor moves in the rig. In an area that is especially sensitive, the operator and contractor take extra steps to ensure that as little harm as possible occurs. Offshore, the operator hopes that the weather is reasonably good, and, if bottom can adequately hold any rig supports in contact with it.

Whether on land or offshore, once the site is prepared for the rig, the next step is for the drilling crew to rig up (That is, to put the rig components together and prepare the rig for drilling.)

For more articles on energy: Heartland Energy, Heartland Energy Colorado

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