At this stage the petroleum system is looked at. The reservoir type, the trap that promotes accumulation and the source of the hydrocarbon s identified. Typically this is done by mapping the area and by the analysis of seismic data. If it is available then mud logging data and core samples are consulted.
In this phase areas of potential are identified. The geological features identified in the geoscience phase are assessed, and a more detailed geological framework is developed. The rock, fluid and pressure properties are better defined, this leads to the estimates of the hydrocarbon volumes in place. The decision to drill further and evaluate is made.
Better and greater attempts made at characterizing the reservoir. Try to determine the geometry and continuity. Plans will be made for a long term drilling campaign. Estimation of the recoverable hydrocarbons will be made again and refined as needed.
- How much worthwhile producible fluid is there?
- How much of it can be recovered and how long will it take to do so?
- How many wells and what type of wells do we need to produce this reservoir?
- Do we have the capital and technology?
- What are the chances of success?
- Will the project turn a profit?
- The well profile.
- The casing selection both the setting depths and the type and grade of casing to be used.
- The details of the drilling and rig operations.
- Management of the financial resources allocated to the operations.
- Troubleshooting operational decisions as they occur.
- Develop completion procedure.
- Pick the perforations based on the open hole logs.
- Run cased hole logs to evaluate the cement job and diagnose and determine solutions to any such problems.
- Design post completion jobs to be performed on the producing formation.
- Produce from the well with minimal cost.
- Negotiate with service providers.
Concerned primarily with the transportation, gathering and eventual distribution and sale of the produced fluids. They essentially handle the fluid until they reach the delivery point.
They move the oil and gas from the well reservoir/wellbore to the final sales point. They are required to gather the fluids, treat and condition the fluids so that they meet delivery expectation conditions and specifications. Production is also responsible for the transportation of said fluids from the reservoir/wellbore to the appropriate points. This would require engineering in the appropriate lift mechanism as well the use of pumps and compressors to efficiently move the fluids form one point to another.
Specifically they will probably rat the fluids for undesirable compounds like hydrogen sulphide and carbon dioxide to name a few.
This particular segment will be responsible for the long term management of the wells, the aim of which is to maximize production and minimize cost and expenditure on the well.
This would involve the sale of the oil and gas to prospective buyers. This may involve further refining or compression and eventual transportation and metering. A good example is the liquifiation of natural gas. The gas is compressed and liquefied and loaded unto ships to be transported to buyers. The same can be said of oil tankers that are loaded and used to transport oil to other areas.
Marketing will also be responsible for negotiating contracts between the seller and the buyer in the case of the two parties having an arrangement. If not the product can be placed on the open market and the market price can determine the selling price.