The upstream segment of the oil and gas industry features a variety of exploration and production activities. Exploration activities include the creation of geological surveys and obtaining land rights. On the other hand, production activities comprise of onshore and offshore drilling. Paul Favret is popular for being the founder of several gas and oil firms with 8 US Patents in upstream oil and gas exploration techniques. Crude oil essentially is categorized by use of two qualities, sulfur content and density. Sweet and light crude oil is priced higher, and hence is more sought after. It also is simpler to refine and make gasoline, as opposed to heavy and sour crude oil.
Oil and gas exploration tends to encompass the methods and processes involved in locating potential sites for gas and oil drilling and extraction. Traditionally, oil and gas explorers used to depend on various surface signs like natural oil seeps. But things have changed substantially over the years. With the developments made in technology and science, oil and gas exploration has become a lot more efficient. Today geological surveys are conducted with the use of various means, right from seismic imaging for offshore exploration to testing subsoil for onshore exploration. Specialist in Geology and Geophysics like Paul Favret are commonly employed by oil and gas upstream companies to deliver the desired outcomes.
Energy companies essentially compete for the access to mineral rights either by entering a concession agreement or a production-sharing agreement. In the former case, any discovered oil and gas tend to be the property of the producers. However, in the latter situation, the government can retain participation and ownership rights. Oil and gas exploration is not a simple endeavor, and it also involves a lot of corporate funds. There are proven reserves for measuring the extent to which a company thinks it can produce economically recoverable oil and gas in place with the use of existing technology.
Oil and gas production is among the most capital-intensive industries in today’s times. As a company manages to identify where gas or oil is located, they start planning to drill. A lot of gas and oil companies have contract with specialized drilling firms, and tend to pay for rig day rates and labor crew. There are many factors that influence the drilling duration, such as weather conditions, rock hardness and drilling depths. Tracking data with the use of smart technologies can aid with the drilling efficiency and performance by providing real time information. Even though all drilling rigs do have the same essential components, the drilling methods tend to vary depending based on the type of oil or gas and the geology of the location. In case of onshore drilling facilities, wells are grouped together in a field, and are connected by carbon steel tubes that are responsible for sending oil and gas to a production and processing facility.