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P a g e
3.0 PRODUCTION
Production is the long-term process of drilling and extracting oil and gas. Most countries grant
oil and gas development rights to private companies through a process of either negotiation or
bidding. Because crude oil and natural gas are non-renewable resources, optimizing recovery
is critical. Only about 25 per cent of the oil can be recovered from a typical reservoir by natural
means or primary recovery techniques. Enhanced-recovery techniques
permit production of
more oil from many reservoirs. The most common enhanced-recovery method, water
injection, involves injecting water into the oil-bearing formation, and the water then forces the
oil toward the producing well bore. Such techniques can result in recovery rates that can
exceed 80 per cent of the oil in place.
Natural gas generally flows to the surface through its own pressure; thus,
a natural gas
wellhead is usually composed of only a series of chokes and valves to control flow. This
wellhead structure is called a "Christmas tree." Crude oil, which typically contains some
natural gas or solution gases, is sometimes produced through its natural pressure, but most
crude oil wells in Canada require some method of lifting or pumping the oil to the surface.
Pumping equipment
is known by various names, including "pump jack," "horse head pump"
and “walking beam” pump.
4.0 Conclusion
There is what is termed as offshore and onshore production, and development is after the
exploration which comprises the installation of facilities to become a platform for production
of Oil and Gas. After the Exploration
and Production, if crude oil is produced must be sold
and transported from the wellhead to a refinery, and If natural gas is produced must be moved
into markets via pipeline or ship, Crude oil has little or no value until is refined into products
such as gasoline and diesel.
The marketing of crude oil,
natural gas, their products and by-products is complex. Various
regulations, both federal and provincial, govern all aspects of production and sales. Although
the provinces have jurisdiction over the oil and gas produced within their boundaries, the
federal government has the ultimate jurisdiction
over oil and gas pricing, transmission and