We hope that you enjoy the Life Cycle of an Oil Well video shown above. While it is our longest video at approximately 19 minutes, we believe making the time to watch the entire video is well worth the investment. The video provides a complete and thorough overview of what happens before, during and after a drill bit hits the ground.
Life Cycle of an Oil Well
What is the life cycle of an oil well?
The average life cycle of an oil well, which begins with the planning stage and ends upon abandonment and/or reclamation, is roughly 20 to 30 years.
The life cycle of an oil well involves, but is not limited to the following steps:
• Data Evaluation
• Obtain Lease
• Shoot Additional 3D Seismic
• Evaluation of 3D Seismic/Data
• Prospect Selection
• Prepare AFE (Authority for Expenditure)
• Clear and Prepare Site, Stake the Well
• Rig Up, Cement Surface Casing
• Blowout Preventer (BOP)
• Drill Well/Drill Stem Test
• Run Open Hole Log
• Set Casing
• Clean the Well
• Field Development
• Abandonment and Reclamation
While, generally, the Operator who is at the helm of the ship gets to carry the trophy upon a success, the success could not be possible without the expertise and efforts of the unsung heroes behind the scenes. These unsung heroes include: Geophysicists, Seismologists, Petrophysicists, Geologists, Land and Legal Professionals, Operators, Petroleum Engineers, Operations Management Personnel, Drillers, Drilling and Completion Operations Service Providers, Capital Providers, Upstream Providers for oil and gas sales. Each of these industry professionals individually, and collectively, play a role from the earliest stages through the wells life, that ultimately influence the outcome of the project.
We at Aresco are proud to share our successes with all of those that collaborated along the way.
The typical life cycle of an oil well can vary widely depending on factors such as the geological characteristics of the oil field, the technology used, the economics of extraction, and environmental considerations. However, a general life cycle for an oil well can be outlined as follows:
Exploration and Discovery: This phase involves the search for potential oil reserves through geological surveys, seismic testing, and exploration drilling.
Drilling and Completion: Once a viable oil reserve is identified, the drilling process begins. This involves drilling a wellbore into the earth’s subsurface to access the oil reservoir. After drilling, the well is completed by installing casing, cementing, and perforating to allow for the extraction of oil.
Production: During this phase, the well is in active production, and oil is extracted from the reservoir using methods such as natural pressure, artificial lift techniques (like pumps), or enhanced oil recovery (EOR) methods.
Peak Production: Oil wells typically experience a period of peak production where the output is at its highest. The duration and magnitude of peak production vary depending on factors like reservoir characteristics and extraction techniques.
Decline: After the peak production phase, the rate of oil extraction begins to decline as the reservoir pressure decreases and the amount of recoverable oil diminishes. The decline phase can last for several years.
Abandonment: Eventually, the well reaches a point where it becomes uneconomical to continue production. At this stage, the well may be temporarily suspended, plugged, or abandoned depending on regulatory requirements and environmental considerations.
The overall life cycle of an oil well can range from several years to several decades, with some wells even experiencing secondary and tertiary phases of production through advanced recovery techniques. It’s important to note that advancements in technology, changes in market conditions, and environmental regulations can influence the life cycle and longevity of oil wells.
This is not an offer to sell nor solicitation of an offer to buy any security. Such offer may only be made by a written prospectus in a jurisdiction wherein the offering is duly registered or exempt therefrom. This content is provided for informational purposes only. Nothing herein shall be construed as tax, legal, or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. There are no guarantees that any returns will be achieved. Potential investors should consult their attorney, accountant, and financial advisors before investing in oil and gas.