CHAPTER I

OVERVIEW OF DEVELOPMENT
GEOLOGY
Parke A. Dickey1
Professor Emeritus, University of Tulsa
Tulsa, Oklahoma

DEFINITION OF DEVELOPMENT
GEOLOGY
Development geology, which is also called "production
geology" or "reservoir geology," may be defined as what a
geologist does after the discovery of an oil or gas field.
In the past, geological activity in the petroleum business has
been largely devoted to exploration for new fields, while
petroleum engineers were responsible for development.
However, geologists are needed in development also. Indeed,
some of the newer geological and geophysical methods, like
seismic stratigraphy and the recognition of depositional environments, have more practical application to development
than to exploration.
DEVELOPMENT OF A NEWLY
DISCOVERED FIELD
A newly discovered reservoir in or near a mature oil region
is developed by successive step-outs until the limits of the field
are found. The infrastructure, that is, pipelines to markets,
roads, warehouses, and equipment, are all available. The risk
in each successive investment is no more than the cost of drilling a dry hole.
In the case of a discovery in a remote area or hostile environment, the situation is very different. A field cannot be
developed unless a payout within a reasonable time can be
assured. For example, drill ships discovered oil in the Gulf of
Siam when there were no facilities for producing it. In the case
of a discovery in the North Sea, where a platform may cost
500 million dollars, a field should contain 100 million barrels
of oil to be economic. Perhaps the most astonishing example
is the Arctic Islands of Canada, where not only is the environment hostile, but the distance to the nearest market is several
thousand miles.
Political factors also play a role in deciding whether a field
can be developed. Until recently a 50-million-barrel field was
considered economic in the North Sea. Because the governments now take a larger share of the income, only a 100Present address: Owasso, Oklahoma

million barrel field is considered economic. This will result in

abandonment of fields that should be contributing to the
area's reserves. On the other hand, some government-owned
oil companies may proceed with field development, even
knowing that it will never pay out.
After the discovery of a field, as much information as possible must be obtained from a small number of wells. The most
important thing to determine is the probable size of the reservoir, and after that, its shape and character. Three methods
are used to obtain this information, which should be obtained
systematically, in the right order.
1. A detailed study of the cores and wire-line logs of only a
few wells will identify the sedimentary environments,
and then estimates can be made of the shape and size of
the reservoir and its heterogeneity.
2. Pressure measurements taken with drill-stem tests and
repeat formation testers, and transient pressure build-up
tests, give data on the permeability and reservoir pressure and the probable production rate of the wells. Transient tests should not be used to estimate the size of the
pool. Many giant pools consist of a complex of small subreservoirs.
3. Detailed seismic studies give information on the locations of pinch-outs, truncations, faults, and gas- or oilwater contacts.
It seems desirable to place the second well in a more favorable location, either structurally or stratigraphically. Often the
discovery well has suffered formation damage or has been
drilled in a low-permeability location. It has often happened
that a field was abandoned because the first well was noncommercial, but later the field turned out to be very rich.
The third well should be drilled to find the edge of the field,
which might be a truncation, a fault, or an oil-water contact.
The geological and geophysical studies will suggest its location.
The data from these wells will be interpreted to determine
not only the reservoir volume, but many other parameters
necessary for field development. It is seldom possible to guess
at the recovery mechanism and therefore trie percentage of
recoverable oil in place. If we were to make a practice of getting good information on the water sands in dry holes, we
could predict better the behavior of the aquifer when a discovery is made. A picture of the reservoir is necessary for decid-