Intro to Manufacturing

Today, we’re planning to bring up the manufacturing business of Upstream. If you lost the previous lesson on Upstream, Exploration, and Drilling, make sure to go investigate those out. We’ll place the relevant links within the program notes.

The Production and Offshore Construction Module supplies a high-level summary of production operations. It introduces the offshore contractors and production service suppliers that assist E & P firms in expeditiously manufacturing oil and gas.We’ll additionally mask well completions and key measures and drivers that influence production business operations.

Just like the different lessons, we’ll additionally offer some historical perspective on this a part of upstream oil and gas operations.



Once oil or gas is found with a wildcat or discovery well, the following step in adding price to reserves is to induce the reservoir fluids dropped at the surface or “manufacture” them. After all, Upstream is additionally known as E&P!

Once a reservoir has been found, and an exploratory well has been trained, the well should be completed. Well, completion demands to add the “bottom hole” instrumentation to create the well commercially viable, then getting ready the good fluids for manufacture at the surface.

One wide control read is that completion starts once a bit initial makes contact with a productive reservoir. The Economic prosperity of a well depends in massive half on however the well is completed. A prospering completion should first create the optimum mechanical association between the wellbore and therefore the reservoir.

That optimum association should do 3 functions. It should let oil or gas into the well, wherever it will then flow or be tense to the surface. It should additionally keep water out of the well. And eventually, it should keep the formation from falling down into the wellbore or reservoir.

Manufacture technology, instrumentation, and processes additionally concentrate on maintaining the well and therefore the necessary processing facilities throughout out their economic life.




Challenges in Manufacturing

The easy oil and gas throughout the planet have already been created, and there are new provocations to depart as very little valuable organic compound asset behind as potential, over what could also be a 100+ year lifetime of a field.

“Economic triumph of a well depends in massive half on however the well is accomplished.”

Estimated final recovery (or EUR) is outlined as obtaining as several hydrocarbons out of the bottom to maximize the worth of a lease holding. It is one amongst the best underlying themes for the longer term economic viability of the oil and gas trade.

This lecture concentrates on manufacture operations, which is the management of the technology of well completions, field evolution intentions and facilities.  Just like the drilling module, it is useful to divide the topic into four essential themes around the key factors that drive quality in managing manufacture. These four factors consist of:

  • Hydrocarbon sort, whether oil or gas
  • Reservoir sort, whether typical or unusual
  • Place, whether onshore of offshore or in different remote or severe climate domains
  • Eventually, the facilities together with surface and submarine completion and processing instrumentation

There are two necessary reasons to grasp the technical aspects of manufacture.

First, technology is the limiting factor in discovering and manufacturing ever additional scarce assets.

Second, it very supports to grasp the offshore industry that is massive and complicated. It manufactures, assembles and delivers the instrumentation to supply from offshore wells. As we tend to mention within the exploration module, a considerable portion of the planet’s reserves is being found offshore.

Historical perspective

Let’s take a step back, and bring up some historical points regarding manufacture.

Historical evidence shows that the Chinese first discovered well completions around one thousand BC; firstly, for seawater wells. With the invention of oil in Pennsylvania in 1859, the economic oil era, as we all know it, was born.

Soon, different massive gushers were founded. Spindletop, Texas was found in 1901 at 1.170 ft and made a 100,000 BPD. Known as the Lucas well gusher, it tripled US oil manufacturer overnight. Signal Hill, Golden State was found in 1921, wherever the Alamitos was accomplished at a depth of 3,114 feet and led to the growth of one of the foremost productive oil fields within the planet.

Oil from these wells came in therefore quickly that ditches were accustomed to moving it far away from the well. Therefore, the ancestry of the term upstream, toward the well, and downstream, toward the tanks and facilities.

“Technology is the limiting factor in discovering and manufacturing ever additional scarce assets.”

In the 1920s, the Lufkin Foundry and Machine Firm in Texas spread a pumping component for a Humble Oil company (now Exxon). At first utilized in the Goose Creek oilfield on the Gulf Coast it had been formed and therefore the pump jack style is currently seen around the world. Lufkin Industries became a part of GE Oil & Gas in 2013.

Another milestone happened in 1919, when George and Herman Brown partnered with their brother-in-law, Dan Root, to begin a construction business. Brown and Root created the planet’s initial offshore platform in 1947. We have a lot of fascinating and necessary milestones on the timeline of our History of Oil Page, and we’ll embrace a link within the program notes.

The manufacturing aspect of the business has come a long way since those days. Operators equipped with advanced technologies and equipment are now finishing wells at depths of 25,000 feet, in offshore waters as deep as 10,000 ft or 3,000 meters.

Life of an Oil Field

Another component touching manufacture operations are the lifetime of an oil or gas field.

The planet’s oldest manufacturing oiler, McClintock No.1 in Titusville, Pennsylvania, commemorated its 150th birthday in September 2011 and not long ago underwent remedial work to revive its health.

Now a possession of a State of Pennsylvania, McClintock No.1 was trained in August 1861, at a depth of 630 feet (190m). At one purpose, it created 50 BPD from the third sand. Today, it can manufacture 12 barrels a month, that’s if the pumps are turned on. But, salt water has to be taken care of as a result of the well currently pumps a lot of brine than oil.

With such increased well life there’s a requirement for accuracy and consistency in the recording of each operation done to the well, as a result of each operation influences the long-run economic viability of a well of the field.

Operations use this information, known as a good history to optimize the field growth intentions and methods required to recover the utmost quantity of hydrocarbons from every reservoir.