Unit 3 55

Notes
The Exploration of Oil
Objectives
After reading this unit, you will be able to:
y Understand how hydrocarbons (oil and gas) were
formed and trapped below the surface of the earth.
y Understand how hydrocarbons are explored, located
and assessed for commercial viability
y Get an overview of primary production methods and
enhanced oil recovery methods.

Formation of Oil Traps

It is important to have an elementary understanding on how

hydrocarbon is formed and trapped in the rocks below the
earth. It was explained in Unit-1 that according to the widely
accepted “organic theory”, oil and gas were originated from
huge masses of organisms, animals and vegetation that
got buried under the earth and were covered by
sedimentary rocks. Layers of rock formed over it and the
formation and trapping of the hydrocarbons took place in
the following stages over millions of years.

Formation of Hydrocarbons : The hydrocarbon

formation took place by decomposition in various layers of
rock called source rock. The decomposition took place
0
under high pressure and temperatures between 50 C and
0
170 C at depths between 1500 meters and 6000 meters.
At lower temperatures (normally at lower depths) heavier
oil was formed and higher temperatures lighter oil was
formed.

Migration of Hydrocarbons: Due to lighter gravity of

hydrocarbon formed compared to water which is always
present below earth's surface and due to high pressures
below the earth, oil and gas migrated slowly through the
gaps in subsurface rocks with high permeability. During the
migration, the oil and gas got into densely packed
sedimentary rocks of very high porosity known as
reservoir rocks. Sandstone and limestone are common
reservoir rocks. Fig 3.1 shows typical indicative sketch of
permeable rocks and Fig 3.2 shows an indicative sketch of
porous reservoir rocks.
 56
Notes

Fig. 3.1
Migration of Hydrocarbons Through
Rocks Having Permeability
Understanding Oil & Gas Business

Technomanage
 Fig. 3.2
Porous Reservoir Rocks UNIT 3 The Exploration of Oil

Technomanage
57
Notes
 Understanding Oil & Gas Business

58 Formation of Traps: Migration of the oil and gas stopped

Notes at traps which were formed due to various reasons like
sedimentation and convulsions that took place on earth's
strata. A typical trap is covered with non-permeable hard
rock called cap rock.

Traps are formed by deformation of the rocks, deposition of

rocks or by creation of faults due to movement of rock
strata. The common types of structural traps are anticlines
and domes or a fault. Fig. 3.3 shows some typical traps.

Fig. 3.3
Traps
Nonporous rock

Technomanage

Gas

Porous
rock

Faults

Nonporous rock

Technomanage

Gas

Porous rock

Anticline
 UNIT 3 The Exploration of Oil

In the trap, the gas being the lightest rises to the top. The oil 59
settles below the gas, and the water, which is heaviest, Activity 3a
settles at the bottom. Due to high pressure, a lot of gas
remains dissolved in the oil. A large formation of rocks of
this nature bearing hydrocarbons is called reservoir. The
earth surface above a reservoir from which commercial Carry out search of
exploitation takes place, is called oil, gas or condensate literature and internet
for different types of
field depending on what it produces.
structural traps and
faults.
The term hydrocarbon reserves refers to the estimated
amount of oil, gas or condensate that is expected to be
produced in the future from wells in known fields.

The search for hydrocarbons is called prospecting or

exploration of oil or hydrocarbons.

Exploration for Oil and Gas

As stated in the previous section, early oilfields were

discovered through locating seepages. It is said that the
first oil field in India, at Digboi was identified after oil was
seen on the mud carried with footsteps of elephants in the
jungles of Assam. With such easily locatable and shallow
oilfields having been exhausted and the demand for
energy having gone up by leaps and bounds, the search for
oil is a different ball game today. It is very technology
oriented, yet uncertainties and risks are still heavy.

A commonly used terminology in oil companies,

Exploration & Production (E&P), comprises of search,
discovery and production of oil and gas by undertaking the
following activities:

6 Licensing and agreement from the governments

concerned.

6 Geological surveys including aerial photography,

satellite images to examine nature of rocks and soil
strata and interpretation of such data.

6 Geophysical surveys such as seismic surveys.

 Understanding Oil & Gas Business

60 6 Interpretation of data and geological modeling.

Notes
6 Identifying hydrocarbon resources and their location
based on the interpreted data.

6 Economic evaluation of the located reserves.

6 Exploratory drilling to establish commercially viability.

6 Preparation of field development plan.

6 Commercially exploiting them by setting up necessary

drilling and production infrastructure.

The range of activities outlined take several years of

teamwork between Geologists, Geophysicists, Reservoir
Engineers, Chemical Engineers, Petroleum Economists
and other disciplines.

Here we shall cover the exploration part. Infrastructure for

commencing commercial production will be covered in
Unit 4.

Licensing and Agreement:

The first step in exploration of oil obviously is entering into

contract, lease agreement or obtaining licenses from the
governments. Normally the government of the country
carries out a lot of surveys (see next item) to define a
‘block’ for exploration and invites bids. The selected bidder
then enters into agreement with the government. There are
two types of arrangements:
6 Licenses to the exploring company to explore and
produce oil and gas with license fees, royalties (per unit
production) and taxes payable to the state.
6 Production sharing contracts, in which the state or a state
owned company, is made a partner in the venture.
Normally the initial exploration costs are borne by the
licensee. Revenues earned on production are first set-off
against the costs incurred by the licensee and the
balance amount is shared in an agreed percentage.
Once the agreement is reached, the exploration starts.
 UNIT 3 The Exploration of Oil

Geological and Geophysical Surveys: 61

Notes
Geologists try to develop a model or a map where
hydrocarbon might occur, based on geological principles.
The map is based on a wide variety of geological
information. They try to locate anticlines and domes by
mapping rock layers coming out of earth's surface. They
use very conventional tools like hand-held compass,
telescope etc. to determine the orientation of the rock
layers. With these instruments geologists generate
drawings and maps of the position and size of the rock
protrusions.

Other tools used by Geologists are aerial photographs and

satellite pictures of the earth's surface. When exploratory
wells are drilled, geologists examine the rock samples and
other well data to make subsurface maps of the reservoir
rocks. Matching up rock layers between wells allows
geologists to draw cross sections in order to find petroleum
traps.

Geophysicists measure the properties and patterns of

sub-surface rock strata by three types of surveys

6 Magnetic Survey - to determine the strength of the

Earth's magnetic field at a specific location.

6 Gravity Survey - to determine the strength of the Earth's

gravity at a location.

6 Seismic Survey - to draw subsurface maps using sound

waves.

In seismic survey explosive charges are detonated in holes

drilled by truck mounted rigs at specific points in the survey
area. This rig is called Thumper Truck. The energy waves
are picked up by geophones laid out on the surface and
recorded on magnetic tape by seismographs, the same
instruments that are used to measure the earth-quakes.
 Understanding Oil & Gas Business

62 By knowing the velocity at which energy travels through

Notes rocks of different types, and by measuring the time it takes
for the energy to be reflected to the surface, seismologists
are able to construct approximate relief maps of deeply
buried rock layers. Computers are used to enhance the
subsurface picture formed from sound waves.

Fig 3.4 depicts a seismic survey being done with a

Thumping Truck and a Recording Truck.

The geo-phonic data is processed by computers into

seismic lines. The seismic lines are two-dimensional
displays that resemble cross-sections of the rock strata.

The seismic data helps to develop the geometry and size

of the "trap" formation, where hydrocarbon exists
under the trap and decide whether an exploratory well is to
be drilled.

Two-dimensional lines (2-D) are created as seismic data by

laying the geophones in single line. Three dimensional
seismic lines can be created by collecting geo-phonic data
as an intersecting grid of seismic lines. 3-D seismic data
can help to create 3-D geometric model of the reservoir.
Fig. 3.4
Seismic Survey
Seismographic
Thumper Truck Recording Truck

Transmitted Reflected
Sound Waves Sound Waves
Technomanage
 UNIT 3 The Exploration of Oil

Drilling 63
Activity 3 b
After geological and geophysical studies are carried out,
the possibility of presence of hydrocarbon deposits worth
further exploration is established. Once an exploration
target is defined a drilling contractor is hired to drill Make a list of various
exploratory wells. types of well with
definition.
Exploratory well: An exploratory well is required to
confirm the existence of oil or gas in a basin identified
through geological and geophysical surveys. The first
exploratory well drilled in a field is called wildcat. The first
successful well showing hydrocarbon presence during
wildcat is called discovery well. Points to note are:

6 It may or may not produce oil and is abandoned if it does

not produce oil. The well is called dry hole.

6 A lot of information is generated by logging some of the

properties of the well and analyzing the fluids and rocks
that come out during drilling. This data helps in defining
the geological history and the properties of the reservoir.

The information interpreted from the well logs is used for

decision making on whether the well is to be used for
production or is to be abandoned for being not viable
economically. The information is also used to update
the geological models.

Drilling is a continuous effort in a field even after discovery

and production of hydrocarbons. Drilling of additional well
after discovery to define the size of the reservoir is called
delineation. Development wells are drilled into a known
reservoir to increase production.

Oil wells are being drilled all over the world in diverse
geographical areas. Very often they are in remote areas
like deserts, forests or oceans (offshore). On land
(onshore) the well site must be cleared and access roads
are constructed.

A typical drilling rig onshore is shown in Fig.3.5.

 Understanding Oil & Gas Business

64
Notes

Fig. 3.5
Drilling Rig

Crown block

Hoisting System
Derrick
or
Mast

Mud hose
Rotary Table

Pumps

Generator /
Engines

Technomanage
Blowout Mud Pit
preventers

Casing
Drill Pipe

Drill Bit
 UNIT 3 The Exploration of Oil

Drilling the Well 65

Notes
Drilling rigs of special design are used to drill wells for
exploration. The basic system involves a rotary
mechanism, a circulation mechanism and a hoisting /
lowering mechanism as shown in the Fig. 3.5. The rotary
system includes diesel based power and a rotating wheel
assembly that causes the drill pipe to turn thus activating
the drill in the hole. The hoist is also powered by a diesel
engine and is used to raise and lower the drill stem to
change the bit.

The circulation system includes a pump to force a mixture

of water and mud down the inside of the drill stem to:

6 keep the drill bit cool

6 bring fragments of broken rock to the surface

6 keep the drill bit lubricated

6 to prevent any accidental “ blow-out “ meaning sudden

eruption of oil and gas through the well pipe.

As the mast is raised, the equipment is placed in position, it

is called “Rigging Up”. As the drilling the well is begun, it is
known as “Spudding In”.

Drilling is a 24 hours a day operation. Shallow wells on land

may be drilled very quickly, e.g. 500 meters in 3 to 4 days.
Deep wells (3000 -4000 meters) offshore can take several
weeks depending on depth of sea, weather etc.

Each time the drilling bit is changed, the entire length of

pipe in the hole must be brought up, disconnected and
stacked. This is called “Making a Trip”. The mud circulates
down the inside of the drill pipe through the bit and up the
outside of the pipe. Blow-out Preventers ( B.O.P.) are
located at the surface. These are valves which
automatically close if a sudden increase in pressure
occurs. A blow out can cause explosion and fire with
severe loss of life. Getting the fire out and controlling the
well is a major problem.
 Understanding Oil & Gas Business

66 Horizontal Drilling
Notes
Horizontal drilling is an important technology which
makes oil production more economic. Wells are usually
drilled vertically or slanted from a platform. Modern drilling
technology can produce a 90 degree turn in a short
distance. This is due to methods and tools that control the
drillbit, flexible pipe and innovative engineering design. A
horizontal well is first drilled vertically to a target then
angled to a path parallel to the formation to penetrate the
reservoir. This improves recovery and economics.

Offshore Drilling

Offshore or marine rig is positioned by tugs. The type of

rig selected depends on depth of the sea. The different
types of offshore rigs are shown in Fig. 3.6.

The various types of offshore drilling rigs are:

(i) Jack-Up Rig is floated to it's the well

location. At the location huge “legs” are
cranked down to reach the sea floor. Then
the hull is raised above sea level. It normally
stands on four legs resting on the sea bed. Its
use is limited to water depths of upto a few
hundred meters.

(ii) A Drill Ship is like any other ship but has a

mast located centrally and is therefore a very
mobile drilling rig.

(iii) Submersible Rigs have hulls on which it

floats while being towed to the site. On
location the hulls are flooded and the hulls
come to rest on the bottom. Used for shallow
water drilling only.

(iv) Semi-Submersible Rigs are similar to

submersible rigs but when the hulls are
flooded they do not sink to the bottom.
 UNIT 3 The Exploration of Oil

Once a reservoir is found to be commercially viable, a 67

development well program is carried out from a platform Notes
anchored to the sea bed. This is converted to a
production platform as described in Unit 4.

The rigs must not be confused with offshore

platforms, which is normally permanently piled in the
sea bed.

Fig. 3.6
Jack-up and Semi-submersible Rigs

Field Development Plan:

If the results of an exploratory drill indicates the possibility

of commercially viable oil or gas find then a field
development plan is created and an economic viability
report based on the plan is prepared. The field
development plan is a project report containing:

6 Projected production profile based on reservoir

simulation

6 Pressure, temperature and well production data

6 Recovery techniques

6 Optimal recovery rate over a period of time

6 Life of the field

 Understanding Oil & Gas Business

68 6 Enhanced Oil Recovery methods needed in future

Notes
6 Number and type of wells proposed and drilling
technique

6 Field layout with location of wells and other facilities

6 Facilities required for production and processing at

oilfield

6 Transportation and distribution infrastructure

6 Environmental impact

6 De-commissioning costs

6 Logistics support required at the oil or gas field

6 Total investment, production cost, maintenance cost and

cost of material and logistics for production

An economic evaluation is made, based on contractual

terms, and taking into account the risks involved. The
viability of the project is worked out by discounting the
estimated cash flows at suitable discount rates.

De-Commissioning of Wells:

In most of the countries, it is mandatory to decommission

the wells and bring back the land to its original state after
the field is abandoned.

Exploration and Production Costs:

The costs incurred for production of oil and gas comprise

of the following:

6 Exploration Costs

6 Development Costs

6 Operating Costs
 UNIT 3 The Exploration of Oil

Exploration costs include the cost of seismic surveys and 69

exploratory drilling and varies between US$ 1 per bbl in Notes
prolific oilfields to more than US$ 12 per bbl, where the
environment is difficult and production per well is low. The
finding costs have reduced significantly over a period of
time to US$ 4-6 per bbl on average. This is due to the
technological evolutions like-

6 Developments of 3-D seismic surveys, which give more

precise location of wells.

6 Development of horizontal drilling

6 Development of FPSO

6 Development of sub-sea production system

Development and operating costs include the cost of

production, maintenance, processing, transportation,
infrastructure etc. It varies from US$ 1 per bbl in Middle
East to as high as US$ 20 per bbl in certain locations.

On an average, the cost of oil exploration, development

and operation comes around US $ 10-12 per bbl.

Oil Industry is a Risk Business

The cost of exploration for hydrocarbon resources is very

high. In spite of technological developments in
establishing oil finds, the uncertainties involved in finding
commercial quantities of oil and gas is large. Several
millions of dollars are often spent without discovering a
viable field. The successful ventures have to generate
sufficient profits for the unsuccessful ones to keep the
business going.
 Understanding Oil & Gas Business

70 The risks exist because:

Activity 3 c
6 In spite of high level of technology involved, methods are
not precise.

Prepare a flow chart 6 Methods are indirect and they do not indicate the
of activities involved presence of petroleum itself. They only indicate
from decision to geological situations with probability of oil find.
explore a prospect to
production of oil. 6 We can not see what is happening below the earth. We
conclude only by interpretation of the data. Variables are
numerous and the interpretation may go wrong.

6 Thus many dry holes are drilled.

Oil companies balance the risk with rewards.

Oil Production - A Challenging Task

Once the exploration and assessment stage is over and the

reservoir is found suitable for commercial exploitation,
decision is taken for commercial exploitation. The method
of production depends on:

6 Location of the field

6 Field life
6 Size of the field
6 Quality of oil and gas
6 Production profile over the field life (for oil, gas and water)
6 Pressure/ Temperature profile over the field life
6 Use of artificial methods of production
6 Customer specification of oil and gas, market location
and method of transportation.

Location of the Field

Most hydrocarbon deposits today are found in remote

areas. For example, they are found more often in the
deserts or dense forests (onshore) or below the ocean
(offshore). Earlier the hydrocarbon finds and production
offshore was limited to shallow or moderate depth locations
(a few meters to a few hundred meters). With today's
exploration and production technology, we have shifted to
deeper seas (thousand meters water depth).
 UNIT 3 The Exploration of Oil

Field Life 71
Notes
It could be from a few years to a few decades. Fields with
low production profile and short life are referred as
marginal fields.

Size of the Field

Area over which a field exists (measured over the earth's

surface) could be as small as 50 to 100 square Km to a few
thousand square Km.

Quality of Oil and Gas

Oil could be light, medium, heavy or it could be even

condensate. It could be sour (high sulfur bearing) or sweet.
The gas could be high calorific value (methane rich), low
calorific value (carbon dioxide or nitrogen bearing), sweet
or sour. Ratio of gas to oil known as Gas Oil Ratio (GOR)
can vary widely from field to field and over the field life.

Production Profile

Normally the oil production starts at a low level, it

increases to a peak level called plateau level and then
tapers off. The gas and water production also changes
with field life depending on characteristics of the reservoir.
Typical production profile of an oilfield is given in Fig. 3.7.

Fig. 3.7
Production Profile
Million Tons/Year
Production Rate

Oil

Gas
Water

Field Life Years

 Understanding Oil & Gas Business

72 Production - An Overview of Methods

Notes
In the beginning of field life, unless the pressures are very
low, the well fluid comes out of the wells on its own
pressure. This kind of production of oil on its own pressure
is called Primary Production. A primary production facility
comprises of:

6 Manifold on top of the well, called Christmas Tree (see

Annexure)

6 Equipment and systems for separation of oil, gas and

water.

6 Equipment and systems to make the oil and gas as free

of water as specified by the customer (dehydration of oil
and gas).

6 Equipment and systems for measurement and

transportation of oil and gas to the customer.

6 Equipment and systems to treat water for disposal.

During primary production, 25-30 percent of the oil in the

reservoir can be recovered by the natural reservoir drive.
Other techniques are used to recover some of the
remaining oil. Secondary and Tertiary methods of
recovery of hydrocarbons are used for maximum extraction
of hydrocarbons from the reservoir. These methods are
summarized in Table 3.1. These are also known as
Enhanced Oil Recovery (EOR) methods.

Sometimes the pressures of the reservoir are low at the

early stages of production. In such cases artificial methods
are used even during primary production.

A very popular method used for low-pressure shallow

wells is Sucker Rod Pumps to pump out the oil (Fig. 3.8).

These pumps having huge size of their drive system, which

moves up and down, make a magnificent sight in the
oilfield, where often an array of such pumps can be seen.
 UNIT 3 The Exploration of Oil

The plunger goes deep down the well moving up and down 73
pumping out the oil. Notes

Fig. 3.8
Sucker Rod Pump

Gas

Oil
k
s roc
rou oc
k
n po r
No k us
roc oro
ous np
Por No Technomanage

Water Injection

Water is first treated to meet reservoir specification for

particulate content, dissolved solids content, oxygen
content etc. Then it is injected around the periphery of the
producing well as shown (Fig. 3.9).

Fig. 3.9
Water Injection

Injection
Well

Injection Production Injection

Well Well Well

Injection
Well

Typical Water Injection

Configuration Layout Production Well

Oil out
Water Water

Injection Well Injection Well

Water
Water

Oil out

Gas

Oil

ck
rous ro
Nonpo r oc
k
s roc
k us
Porou poro
N on Technomanage
 Understanding Oil & Gas Business

74 Use of water injection can boost the recovery by another

Notes
15-20% of the original oil in the reservoir, raising the
recovery level to 40-45%. Water Injection is sometimes
considered primary production method and falls under the
category of artificial lift, meaning lifting the oil out of the
well by artificial means rather than its own pressure.

The essential equipments in water injection system are

filters, de-oxygenating tower and chemical injection
system.

Enhanced Oil Recovery (EOR) methods are tried after the

water injection. It can further increase the recovery by another
15-20% leading to recovery of around 60% of the oil in the
reservoir.

Table 3.1
Secondary and Tertiary Methods of Production
Method of Recovery Process Use

WATER- Water Water is pumped into the Method most widely used
FLOODING reservoir through injection in secondary recovery.
wells to force oil toward
Production wells.
IMMISCIBLE Natural Gas is injected to maintain Secondary recovery
GAS gas, flue formation pressure, to slow
INJECTION gas, the rate of decline of natural
nitrogen reservoir drives.
,
MISCIBLE Carbon, Under pressure, carbon Secondary recovery or
GAS dioxide
, dioxide becomes miscible with tertiary recovery following
INJECTION Propane oil, vaporizes hydrocarbons, water flooding .Considered
Ethane and enables oil to flow more especially applicable if
Nitrogen freely. Often followed by carbon dioxide supplies
injection of water. located with a feasible
distance.
CHEMICAL Polymer Water thickened with polymers Used during secondary
FLOODING is used to aid water flooding by recovery to aid other
improving fluid -flow patterns. processes during tertiary
recovery.
Micellar A solution of det ergent - like Almost always used during
polymer chemicals miscible with oil is tertiary recovery after
injected into the reservoir secondary recovery by
water flooding.
THERMAL Steam Steam is injected continuously Used when oil is too
RECOVERY drive into heavy - oil reservoirs to viscous for water flooding.
drive the oil toward production Tertiary recovery after
wells. secondary recovery by
water flooding.
In - Situ A part of the oil in the reservoir Used with heavy-oil
Combus- is set on fire, and compressed reservoirs during primary
tion air is injected to keep it burning. recovery when oil is too
Gases and heat advance viscous to flow under
through the formation, moving normal reservoir
the oil toward the production conditions.
wells.
 UNIT 3 The Exploration of Oil

Steam Injection 75
Notes
Steam is injected down injection wells to heat the heavy oil
to reduce its viscosity and make it more fluid. The steam
also produces drive to push the oil toward producing wells.

Fig. 3.10
Steam Injection

High Steam Oil out

Pressure
Boiler Injection Well Production Well
Steam

Oil out

Gas

Oil

ck
rous ro
Nonpo oc
k
k sr Water
s oc
r rou
Porou npo
No Technomanage

Main equipment are water treatment plant (for boiler quality

water), and boiler. Rugged type of boilers are used to
produce high-pressure steam (above reservoir pressure).

In-situ Combustion

This method of EOR is used for very viscous crude oils. It is

also used as primary production method where crude oil is
too viscous to flow up through the well on its own.

In-situ combustion has been effectively used in North

Gujarat Oilfield in India to produce very viscous crude oil,
which is almost like semi-solid in the ambient temperature.

In this process (Fig. 3.11), air and water are injected into
the oil reservoir in alternate cycles. At first air is injected
around the outer layer of the reservoir and the oil is ignited
as a result of presence of oxygen (air). The heat generated
raises the temperature of oil thus reducing the viscosity.

But due to combustion, there is loss of some amount of

crude oil. Once the desired temperature level in the
reservoir is reached, air injection is stopped.
 Understanding Oil & Gas Business

76
Notes Fig. 3.11
In-situ Combustion

Air Water Oil out

Injection Injection
System System Injection Well Production Well

Oil out
Gas

Oil

ck
rous ro
Nonpo r oc
k Water
s roc
k us
Porou oro
onp
N Technomanage

The flame in the reservoir is quenched with injection of

water. Water injection is stopped once the flame is
quenched. As the temperature falls, injection of air and
ignition of the oil is done again. This cycle goes on
repeating according to the time cycle decided by reservoir
engineers.:

Gas Injection and Gas Lift

It is important to note the difference between the two

methods of recovery of hydrocarbons. Gas Lift is injection
of gas in the well tubing to make the density of oil column in
the well lighter. As a result the hydraulic head of the fluid in
the well becomes less and oil flows out more easily.

But Gas Injection involves injection of the gas directly to the

reservoir to provide drive to push out oil.

Both processes involve compression of the gas coming out

in the field to high enough pressure to be put back either to
the well or to the reservoir.

These are some of the typical EOR processes. A team of

reservoir engineers, geologists and geophysicists base the
choice of EOR method and its design/operating
parameters on a thorough simulation and study of the
reservoir.
 UNIT 3 The Exploration of Oil

Summary 77
Notes

In this unit, at first the formation of hydrocarbon bearing

structures was described. A description of hydrocarbon
reservoir comprising of porous rocks containing the
hydrocarbon in its pores and covered by a non-permeable
cap rock was given.

This was followed by description of the methods of oil

exploration, identification of probable hydrocarbon bearing
structures and drilling of exploratory wells. The risks and
costs involved in search for oil was highlighted.

An overview was given on various primary and secondary

methods of oil and gas production.

Review Questions

(1) Describe how oil is formed and how it migrated and got
trapped in certain locations below the surface of the earth.

(2) Outline the major steps an oil company has to go

through starting from the decision to explore for oil in
ceratin area to the decision to start production of oil.

(3) Give brief description with sketch for -

6 Water Injection Process

6 In-situ combustion process

(4) List down all the factors that can affect economics of
production from an oil field.

(5) What is the difference between gas injection and gas lift
processes.
 Understanding Oil & Gas Business

78 Quiz
Notes
Please circle the correct answer. There could be more than
one correct answers in some cases.

No. Question Answer

1 Cap rock has (a) High porosity

(b) High permeability
(c) Low permeability
(d) No permeability

2 Seismic survey (a) Rock composition

generates (b) Oil composition
(c) Subsurface maps
3 Water is generally (a) True
present along with (b) False
hydrocarbons in a (c) Partly true
reservoir.
4 Drill bit in a drilling (a) Water
rig is cooled by (b) Oil
circulating (c) Mud
(d) Water and mud
(e) Water and oil
5 Jack up rig is used for (a) Onshore oil
production
(b) Offshore drilling
(c) Offshore oil
production
(d) To jack up a platform
6 Sucker rod pumps are (a) Gas production
used for (b) Oil production
(c) Offshore fields
(d) Low pressure wells

7 Insitu combustion is (a) Low viscosity crude

used to produce (b) High viscosity crude
(c) Crude from deep
wells