Production

The production stage is the most important stage of a well’s life, when the oil and/or gas are produced and the oil company generates income from the sale of oil and/or gas.

Depending on whether the discovery is onshore or offshore, different facilities are used to process the fluid into crude oil, natural gas and water. Primary recovery first relies on underground pressure to drive fluids to the surface. When the natural pressure of the well falls, artificial lift technologies, such as pumps are used help bring more fluids to the surface. Usual rates of recovery are between 20-40% for oil and 60-80% for gas, leaving the rest in the formation. This process from exploration to production usually takes five years for oil and seven years for gas and is subject to governmental and regulatory approvals, and the availability of third-party services, equipment and materials.

1. Origin              2. Exploration              3. Development              4. Production