Introduction to Oil and Gas
The oil and gas industry is huge and comprises of complex processes that involve risk in order to bring about a monetary stability worldwide. Thus the oil and gas industry is critical which influences the world economy directly bringing about an increase in its price making it costlier. There is a huge demand for oil and gas by many large industries for commercial purpose such as working of equipment to the production of different commodities. Hence the countries with large crude oil deposits are the wealthy in the world as the demand for oil and gas exceeds its production. Since the oil and gas industry is crucial and massive in its process its further categorized into three sub segment: upstream segment that engages …show more content…
The first phase is critical as it involve an extensive effort to discover the exact location where the crude oil is available with the help of geologist that inspect the area using gravity meters, magneto meters satellite images sniffers etc. The second phase involves drilling of exploratory wells after the geologist have found an appropriate oil field. This phase is financially critical to the oil company as its expensive and time consuming and there is no given surety of return on investment. Numerous exploratory wells are drilled in the same area to provide an ultimate quality of the oil site. After the oil exploratory wells are drilled the third phase involves operating the exploratory wells that produce crude oil to extract it to the ground surface. Once an exploratory well is set up it can prolong to generate crude oil for several years like an estimate of ten to twenty years bringing about success to the oil …show more content…
POLLUTION PROBLEMS
Another major challenge faced by the upstream oil industry is pollution as a result of corroded pipes and a huge amount of oil being used which leads to oil spill thus degrading the environment for example the shell oil spill in the Niger delta region
POLITICAL PROBLEMS AND ECONOMIC UNCERTAINTY
Political problems such as time-consuming sanctions of new capital based projects, recruitment of new talent, early retirement and unstable acquisition activity leads to variation in the crude oil prices and the economic uncertainty due to unidentified possibility of profit or loss are some of the key risk faced by upstream oil industry.
MAINTAINENCE AND WASTE MANAGEMENT:
INTRODUCING OPERATION MANAGEMENT INTO OIL AND GAS
The oil and gas industry is huge and comprises of complex processes that involve risk in order to bring about a monetary stability worldwide. Thus the oil and gas industry is critical which influences the world economy directly bringing about an increase in its price making it costlier. There is a huge demand for oil and gas by many large industries for commercial purpose such as working of equipment to the production of different commodities. Hence the countries with large crude oil deposits are the wealthy in the world as the demand for oil and gas exceeds its production. Since the oil and gas industry is crucial and massive in its process its further categorized into three sub segment: upstream segment that engages …show more content…
The first phase is critical as it involve an extensive effort to discover the exact location where the crude oil is available with the help of geologist that inspect the area using gravity meters, magneto meters satellite images sniffers etc. The second phase involves drilling of exploratory wells after the geologist have found an appropriate oil field. This phase is financially critical to the oil company as its expensive and time consuming and there is no given surety of return on investment. Numerous exploratory wells are drilled in the same area to provide an ultimate quality of the oil site. After the oil exploratory wells are drilled the third phase involves operating the exploratory wells that produce crude oil to extract it to the ground surface. Once an exploratory well is set up it can prolong to generate crude oil for several years like an estimate of ten to twenty years bringing about success to the oil …show more content…
POLLUTION PROBLEMS
Another major challenge faced by the upstream oil industry is pollution as a result of corroded pipes and a huge amount of oil being used which leads to oil spill thus degrading the environment for example the shell oil spill in the Niger delta region
POLITICAL PROBLEMS AND ECONOMIC UNCERTAINTY
Political problems such as time-consuming sanctions of new capital based projects, recruitment of new talent, early retirement and unstable acquisition activity leads to variation in the crude oil prices and the economic uncertainty due to unidentified possibility of profit or loss are some of the key risk faced by upstream oil industry.
MAINTAINENCE AND WASTE MANAGEMENT:
INTRODUCING OPERATION MANAGEMENT INTO OIL AND GAS