Welcome to the Totally Rad Oil & Gas Page!
The upstream segment of the oil and gas industry contains exploration activities, which include creating geological surveys and obtaining land rights, and production activities, which include onshore and offshore drilling.
Crude oil is categorized using two qualities: Density and sulfur content. Density is measured by API gravity, and ranges from light (high API gravity/low density) to heavy (low API gravity/high density). Sulfur content ranges from sweet (low sulfur content) to sour (high sulfur content). Light and sweet crude oil is usually priced higher, and therefore more sought-after, because it is easier to refine to make gasoline than heavy and sour crude oil. 1
Oil volume is measured in barrels (bbl), which equals 42 gallons. 2
Natural gas is found in both associated formations, meaning it is formed and produced with oil, and non-associated reservoirs. Gas can either be dry (pure methane), or wet (exists with other hydrocarbons like butane). Although wet gas must be treated to remove the other hydrocarbons and other condensates before it can be transported, it can increase producers' revenues because they can sell those removed products. 3
The advent of shale gas in the United States is one of the biggest breakthroughs in the history of the energy industry. Prior to its development, the United States was viewed as a growing natural gas importer. But, production from shale gas has catapulted the United States into being the world's largest producer of natural gas and a fast-growing exporter. The two primary technological advances that made production from shale and other tight formations economically possible were horizontal drilling and hydraulic fracturing.
Oil and gas exploration encompasses the processes and methods involved in locating potential sites for oil and gas drilling and extraction. Early oil and gas explorers relied upon surface signs like natural oil seeps, but developments in science and technology have made oil and gas exploration more efficient. Geological surveys are conducted using various means from testing subsoil for onshore exploration to using seismic imaging for offshore exploration. Energy companies compete for access to mineral rights granted by governments by either entering a concession agreement, meaning any discovered oil and gas are the property of the producers, or a production-sharing agreement, where the government retains ownership and participation rights. 4
Exploration is high risk and expensive, involving primarily corporate funds. 5
The cost of an unsuccessful exploration, such as one that consisted of seismic studies and drilling a dry well, can cost $5 million to $20 million per exploration site, and in some cases, much more. However, when an exploration site is successful and oil and gas extraction is productive, exploration costs are recovered and are significantly less in comparison to other production costs. 6
Proven reserves measure the extent to which a company thinks it can produce economically recoverable oil and gas in place, as of a certain point in time, using existing technology. 7
The estimates for proven reserves are updated over the life of a lease, based on regular reassessments. 8
Technology can impact the estimates: For example, the advances in hydraulic fracturing and horizontal drilling caused the U.S. Geological Survey to increase its proven reserves estimate for the Marcellus Shale by 40 times the original value. 9
In addition to technology, prices and existing infrastructure influence reserves estimates.
Oil and gas production is one of the most capital intensive industries: It requires expensive equipment and highly skilled labors. 11
Once a company identifies where oil or gas is located, plans begin for drilling. Many oil and gas companies contract with specialized drilling firms and pay for the labor crew and rig dayrates. 12
Drilling depths, rock hardness, weather conditions and distance of the site can all affect the drilling duration. 13
Tracking data using smart technologies can help with drilling efficiency and well performance by providing real-time information and trends. 14
While every drilling rig has the same essential components, the drilling methods vary depending on the type of oil or gas and the geology of the location. 15
In onshore drilling facilities, the wells are grouped together in a field, ranging from a half acre per well for heavy crude oil to 80 acres per well for natural gas. 16
The group of wells are connected by carbon steel tubes which sends the oil and gas to a production and processing facility where the oil and gas are treated through a chemical and heating process. 17
Onshore production companies can turn on and off rigs more easily than offshore rigs to respond to market conditions. 18
Offshore drilling uses a single platform that is either fixed (bottom supported) or mobile (floating secured with anchors). 19
Offshore drilling is more expensive than onshore drilling, and fixed rigs are more expensive than mobile rigs. 20
Most production facilities are located on coastal shores near offshore rigs.
Fracking, or hydraulic fracturing, is a technique using a high pressure liquid to extract oil or gas from geologic formations. While the technology has existed since the 1940s, it became more economical in the late 1990s when George Mitchell's Mitchell Energy & Development Corporation patented slick water fracturing. 21
The use of fracking has led to recovering gas, followed by oil, from previously inaccessible parts of drilled wells in addition to extractions from coalbed wells, tight sand formations and shale formations. Fracking is now used in 90% of new U.S. oil wells, especially as the number of conventional reservoirs has decreased. 22
Handbook on Oil Production Research
by Jacquelyn Ambrosio (Editor)
Call Number: TN864 .H36 2014
ISBN: 9781633218567
Published/Created: 2014
It is a well-known fact that since the start of industrial crude oil extraction, some 150 years ago, the United States has consistently been the nation that consumes a greater proportion of the global production of that precious liquid fuel. What may be less obvious for many, nowadays, is that for most of that period the US was also the country with higher crude oil production. This handbook provides recent research on oil production.
Producing Oil and Natural Gas from Shale
by Joelle Bolton
Call Number: HD9539.A2 P756 2015
ISBN: 9781634821261
Published/Created: 2015
Recent advances in combining two drilling techniques, hydraulic fracturing and horizontal drilling, have allowed access to large deposits of shale resources — that is, crude oil and natural gas trapped in shale and certain other dense rock formations. As a result, the cost of that "tight oil" and "shale gas" has become competitive with the cost of oil and gas extracted from other sources. Virtually non-existent a decade ago, the development of shale resources has boomed in the United States. This book discusses the economic and budgetary effects of producing oil and natural gas from shale. It also examines the production, infrastructure, and market issues in U.S. shale gas development; and potential budgetary effects of immediately opening most federal lands to oil and gas leasing.
Oil and Gas Exploration and Production
Call Number: HD9560.5 R34313 2004
ISBN: 2710808404
Published/Created: 2004
"This book provides a complete overview to the stakes and challenges involved in oil and gas exploration and production. Following a historical review and a survey of the markets, the technical phases are covered, as are the evaluation of reserves, the estimation of investments and costs, the decision-making and control processes, and the accounting, legal and contractual environment for these activities. The book concludes with a discussion of the role of safety, and of environmental and ethical issues." "This work, which is designed for readers concerned with the various aspects of the oil and gas upstream sector is accessible to all." —From publisher’s description.
The Frackers
by Gregory Zuckerman
Call Number: HD9569.8 .Z83 2013
ISBN: 9781591846451
Published/Created: 2013
"Things looked grim for American energy in 2006. Oil production was in steep decline and natural gas was hard to find. The Iraq War threatened the nation's already tenuous relations with the Middle East. China was rapidly industrializing and competing for resources. Major oil companies had just about given up on new discoveries on U.S. soil, and a new energy crisis seemed likely. But a handful of men believed everything was about to change. Far from the limelight, Aubrey McClendon, Harold Hamm, Mark Papa, and other wildcatters were determined to tap massive deposits of oil and gas that Exxon, Chevron, and other giants had dismissed as a waste of time. By experimenting with hydraulic fracturing through extremely dense shale--a process now known as fracking--the wildcatters started a revolution. In just a few years, they solved America's dependence on imported energy, triggered a global environmental controversy--and made and lost astonishing fortunes. Award-winning Wall Street Journal reporter Gregory Zuckerman chronicles the untold story of how they transformed the nation and the world. The Frackers tells the story of the angry opposition unleashed by this revolution and explores just how dangerous fracking really is." —From publisher’s description.
E & P
by Hart Energy Publishing
Call Number: TN860 .H34
Published/Created: 2004 to present
This oil and gas industry periodical focuses specifically on the exploration and production (E & P) activities. Articles cover new technological developments, industry forecasts, regional highlights, and equipment costs and safety.
Bureau of Land Management (BLM) Oil and Gas page
BLM regulates federal onshore lands. Their website on the government's oil and gas program contain lease sale information, forms, statistics, and enforcement guidelines.
Bureau of Ocean Energy Management (BOEM)
Formally the Minerals Management Service along with BSEE, BOEM is responsible for providing leases for exploring federal offshore lands. It is divided into four regions: Alaska, Atlantic, Gulf of Mexico, and Pacific. Its official website contains regulations, governing statutes, and GIS data.
Bureau of Safety and Environmental Enforcement (BSEE)
Formally the Minerals Management Service along with BOEM, BSEE is responsible for enforcing safety and environmental regulations of offshore oil and gas resources. In addition to their safety bulletin, their website has a data center, planning and preparedness information, and incident statistics.
Bureau of Safety and Environmental Enforcement Glossary
This glossary contains commonly used terms in oil and gas leasing and exploration activities.
Energy Information Administration (EIA)
U.S. Energy Information Administration collects data and publishes reports and analysis on production, proved reserves, and costs and footage of oil and natural gas wells drilled. Some data series have expired or are captured by other reports, so using the search feature on the website will often bring you to the most current information.
The Gold Book (U.S. Bureau of Land Management)
According to BLM, "The publication Surface Operating Standards and Guidelines for Oil and Gas Exploration and Development (commonly referred to as the Gold Book) was developed to assist operators by providing information on the requirements for obtaining permit approval and conducting environmentally responsible oil and gas operations on federal lands and on private surface over Federal minerals (split-estate)."
How Fracking Changed the World (Planet Money) [podcast]
External
In this third episode ofPlanet Money Buys Oilpodcast series, produced by NPR, Planet Money interviews Nicholas Steinsberger, the oil engineer who helped create modern fracking.
Oil and Gas Extraction. Occupational Safety and Health Administration (OSHA).
A list of hazards related to oil and gas extraction, along with relevant API standards and OSHA regulations for each hazard.
Petroleum Engineers (Occupational Outlook Handbook)
An overview of the job requirements, pay, and skill sets for petroleum engineers.
Profile of Independent Producers (IPAA)
External
The Independent Petroleum Association of American (IPAA) produced this report in 2013, which gives an overview of the upstream industry.
Society of Petroleum Engineers
External
The Society of Petroleum Engineers is a worldwide membership organization of engineers, scientists, managers and operating personnel in the upstream petroleum industry. The web site offers links to industry news, statistics, and reference sources.
U.S. Association of Energy Economics (USAEE)
External
A policy-neutral organization comprised of professionals in corporate, academic, scientific and government. The website includes working papers, journal articles, and news. Some content is for members only. USAEE is the largest Affiliate of the International Association for Energy Economics.
Upstream
External
by NHST Media Group
Published/Created: Weekly, 1996 to present
A subscription based resource containing articles covering the financial, technology, market data dealing with the financial, technological, and marketing aspects of worldwide exploration and production activities. Includes a mix of news, politics, topical features, opinion, personal profiles and market information.
The North American Industry Classification System is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. Codes start with two-digits at the broadest industry level, and become more specific at the six-digit level. Mexico, Canada and United States data is comparable at the five-digit code level. Other region, country, and organization-specific industry codes exist for data tracking purposes. Knowing how a particular industry or a company within an industry is classified can help when researching, since information is often organized within these codes.
21 Mining, Quarrying, and Oil and Gas Extraction
2111 Oil and Gas Extraction
211120 Crude Petroleum Extraction
211130 Natural Gas Extraction
333131 Mining Machinery and Equipment Manufacturing
333132 Oil and Gas Field Machinery and Equipment Manufacturing
Additional works on production and exploration in the oil and gas industries in the Library of Congress may be identified by searching the Library of Congress Online Catalog under appropriate subject headings. Choose the topics you wish to search from the following list of Library of Congress subject headings to link directly to the Catalog and automatically execute a search for the subject selected. For assistance in locating the many other subject headings which relate to this subject, please consult areference librarian.
Petroleum industry and trade.
Petroleum industry and trade and exploration.
Petroleum industry and trade and production.
Petroleum industry and trade--Economic aspects.
Prospecting--Geophysical methods and petroleum.
Petroleum products.
U.S. Energy Information Administration, “Crude Oils Have Different Quality Characteristics,” Today in Energy, (July 16, 2012). Back to text
Steven M. Gorelick, Oil Panic and the Global Crisis (Oxford, UK: Wiley-Blackwell, 2010), 20. The abbreviation bbl originates with the Standard Oil Company who provided the barrels (bl) with the company's trademark blue paint, resulting in a blue barrel or bbl. Back to text
Michael D. Tusiani and Gordon Shearer, LNG: A Nontechnical Guide (Tulsa, OK: PennWell Corp, 2007), 70. Back to text
Tusiani and Shearer, LNG: A Nontechnical Guide, 70.; Martin S. Raymond and William L. Leffler, Oil & Gas Production in Nontechnical Language, 2nd ed., (Tulsa, OK: PennWell, 2017), 329. Back to text
Tusiani and Shearer, LNG: A Nontechnical Guide, 70. Back to text
Oil and Gas Exploration and Production: Reserves, Costs, Contracts. (Paris: Centre for Economic Management, Institut Français du Pétrole, c2004), 66. Back to text
Stewart Glickman and Shang Yang Chuah, Oil, Gas & Consumable Fuels Industry Surveys (New York: CFRA, 2019). Back to text
Tusiani and Shearer, LNG: A Nontechnical Guide, 89. Back to text
Ron Gecan, Natalie Tawil and Mark Lasky, “The Economic and Budgetary Effects of Producing Oil and Natural Gas from Shale,” in Producing Oil and Natural Gas from Shale, ed. Joelle Bolton (Nova Science Publishers, 2015), 20. Back to text
Tusiani and Shearer, LNG: A Nontechnical Guide, 89. Back to text
Darshan Kalyani, Oil Drilling & Gas Extraction in the US, (IBISWorld Industry Report, 2018). Back to text
Morgan Downey, Oil 101 (Wooden Table Press, 2009), 103. Back to text
Oil and Gas Exploration and Production: Reserves, Costs, Contracts. (Paris: Centre for Economic Management, Institut Français du Pétrole, c2004); Kalyani, Oil Drilling & Gas Extraction in the US. Back to text
Martin S. Raymond and William L. Leffler, Oil & Gas Production in Nontechnical Language, 2nd ed., (Tulsa, OK: PennWell, 2017), 325. Back to text
Charles F. Conaway, The Petroleum Industry: A Nontechnical Guide, (Tulsa, OK: PennWell, 1999), 121. Back to text
Conaway, The Petroleum Industry: A Nontechnical Guide, 173. Back to text
Oil and Gas Exploration and Production: Reserves, Costs, Contracts. (Paris: Centre for Economic Management, Institut Français du Pétrole, c2004). Back to text
Travis Hoium, “Offshore vs. Onshore Drilling: Which is a Better Investment?” The Motley Fool External, (Jan. 29, 2013). Back to text
Conaway, The Petroleum Industry: A Nontechnical Guide, 177. Back to text
Kalyani, Oil Drilling & Gas Extraction in the US. Back to text
"Unlocking the Potential of Unconventional Gas," Pipeline & Gas Journal 240, no. 3 (Mar 2013): 26-30,32-34. Back to text
Mary Tiemann and Adam Van, Hydraulic Fracturing and Safe Drinking Water Act Regulatory Issues, R41760,, (Congressional Research Service, July 13, 2015) Back to text
Generate your own 90s page here!