The Process

From EPA Office of Compliance Sector Notebook Project, Profile of the Oil and Gas Extraction Industry, page 15

The oil and gas extraction industry can be classified into four major processes:

(1) exploration,
(2) well development,
(3) production, and
(4) site abandonment.

Exploration involves the search for rock formations associated with oil or natural gas deposits, and involves geophysical prospecting and/or exploratory drilling.

Well development occurs after exploration has located an economically recoverable field, and involves the construction of one or more wells from the beginning (called spudding) to either abandonment if no hydrocarbons are found, or to well completion if hydrocarbons are found in sufficient quantities

.

Production is the process of extracting the

hydrocarbons and separating the mixture of

liquid hydrocarbons, gas, water, and solids, removing the constituents that are non-saleable, and selling the liquid hydrocarbons and gas. Production sites often handle crude oil from more than one well. Oil is nearly always processed at a refinery; natural gas may be processed to remove impurities either in the field or at a natural gas processing plant.

Finally, site abandonment involves plugging the well(s) and restoring the site when a recently-drilled well lacks the potential to produce economic quantities of oil or gas, or when a production well is no longer economically viable.

Resources

The Intermountain Oil and Gas BMP Project addresses all four major processes, but focuses on well development, production and site abandonment.

For information on the oil and gas development process, see the following resources:

EPA Office of Compliance Sector Notebook Project, Profile of the Oil and Gas Extraction Industry (see Chapter III)
EPA’s Sector Notebook Project on Oil and Gas Extraction provides summary information of environmental issues associated with the oil and gas sector to help facilitate multi-statute solutions to facility permitting, compliance assurance, education/outreach, research, and regulatory development issues. The document includes general industry information (economic and geographic), a description of industrial processes, pollution outputs, pollution prevention opportunities, federal statutory and regulatory framework, compliance history, and a description of partnerships that have been formed between regulatory agencies, the regulated community and the public.

Overview of the Oil and Gas Exploration and Production Process
This article provides a brief introduction to the "upstream" side of oil and gas, including exploration, appraisal, development, production, decommissioning and rehabilitation.

Oil and Gas at Your Door: A Landowner's Guide to Oil and Gas Development
This guide contains a description of the oil and gas development process, legal and government regulatory information, tips on how to deal with the oil and gas industry, stories from landowners who have already experienced development on or near their property, and lists of additional resources that may help to further prepare landowners for oil and gas development. The guide highlights issues specific to private as opposed to public lands.

Wyoming Energy Resource Information Clearinghouse
This site is a clearinghouse of information about energy sources such as coal, natural gas, oil, renewable resources, and alternative forms of energy available in and around the state of Wyoming. In addition to being a one-stop-shop for Wyoming energy, the Web site has many resources that are regionally or nationally applicable.

Montana Board of Oil and Gas – Coalbed Methane Information
This site contains many resources on coalbed methane, including use of produced water, Montana’s BMP handbook, and general BMP information.

Bureau of Land Management Oil and Gas Program
The BLM’s Web site includes information on leasing, permitting, developing and operating oil and gas resources.

Bureau of Land Management’s BMP Web page provides both general and technical information on BMPs, including links to the Gold Book, BMP Awards, and information on split estates.

Environmental, Health, and Safety Guidelines for Onshore Oil and Gas Development, International Finance Corporation (World Bank Group)
This source includes technical reference documents with general and industry-specific examples of Good International Industry Practice (GIIP). Included is information relevant to seismic exploration; exploration and production drilling; development and production activities; transportation activities including pipelines; other facilities including pump stations, metering stations, pigging stations, compressor stations and storage facilities; ancillary and support operations; and decommissioning.

Preserving Our Public Lands (2002)
This guide is intended to help grassroots organizations, the general public and concerned citizens to understand and participate in oil and gas decisions affecting our public lands (2002 version.) A 2008 update, Fuel for Thought, focuses on influencing BLM decisionmaking.

Energy In Depth is a website project of independent oil and natural gas producers of the U.S. The website was created to tell the real story of the people responsible for producing energy in America. Energy In Depth gives visitors a virtual, first-hand look at the production process: unvarnished, up close, and yes: in depth. The website includes easy to understand descriptions of the development process as well as commentary on controversial development issues.