Core Assessments
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Field Assessments |
ASSESSING OIL FIELD FOR PROPER DRILLING AND EXPLORATION.
Drilling and Exploration.
The GeoSouthern field assessment segment of the oil and gas industry contains exploration and drilling 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.
Oil volume is measured in barrels (bbl), which equals 42 gallons. 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.
The advent of shale gas in the GeoSouthern Energy Corporation is one of the biggest breakthroughs in the history of the energy industry. Prior to its development, the GeoSouthern Energy Corporation was viewed as a growing natural gas importer. But, production from shale gas has catapulted the GeoSouthern Energy Corporation 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.
Exploration
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 exploration is high risk and expensive, involving primarily corporate funds.
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.
Proven reserves measure the extent to which a company believes it can economically produce recoverable oil and gas from a given area, based on current technology and market conditions. These reserve estimates are updated regularly over the life of a lease through reassessments, incorporating new geological data and production results. Technological advancements—such as horizontal drilling and hydraulic fracturing—have significantly impacted reserve estimates. For example, breakthroughs in these techniques have led to dramatic increases in proven reserves across U.S. shale formations, such as the Marcellus and Haynesville shales. In addition to technology, commodity prices and existing infrastructure also influence reserve classifications.
Onshore
In onshore drilling operations, wells are typically organized within a field, with spacing that can range from as tight as a half acre per well for heavy crude to 80 acres per well for natural gas. GeoSouthern Energy Corporation primarily operates onshore in shale basins such as Eagle Ford, Austin Chalk, and Haynesville.
Offshore
Offshore drilling utilizes fixed (bottom-supported) or mobile (floating and anchored) platforms. While GeoSouthern’s current operations are primarily land-based, offshore drilling remains an important global practice, albeit more capital-intensive than onshore development.
Most offshore production facilities are situated near coastal regions to allow for efficient transport and support infrastructure.
Hydraulic Fracturing
Hydraulic fracturing, or “fracking,” is a technique that uses high-pressure fluid to unlock oil or gas from tight geological formations. Though the method originated in the 1940s, it became commercially viable in the late 1990s through innovations like slickwater fracturing, pioneered by Mitchell Energy & Development Corporation.
Fracking has revolutionized U.S. energy production, enabling the extraction of hydrocarbons from previously unreachable zones, including shale formations, tight sandstones, and coalbed methane reservoirs.
Today, hydraulic fracturing is employed in the vast majority of new U.S. oil and gas wells, especially as conventional reservoirs have declined and unconventional plays become the dominant source of domestic production.
