Oil Production - Industry


Oil production is a significant industrial source of Naturally-Occurring Radioactive Materials (NORM), often associated with petroleum production, recovery of crude oil, and natural gas. This industry deals with the quantities of oil extracted from the ground after removal of inert matter or impurities. As conventional oil production peaked in 2006, oil production plants have boomed and become facilities that process production fluids from oil wells. Typical oil well production fluids are a mixture of oil, gas and produced water. Many permanent offshore installations have full oil production facilities.

2 Different Types of Oil Production

  1. Long-Cycle Supply:
  • Require lots of up-front capital, planning and effort (Billions of Dollars, 3-5 years)
  • Few ongoing operating costs
  • Many years of flat or slowly declining production
  • Similar to baseload energy
  • Traditional form of oil production
  • Depended on for long-term supply
  • Example:  Alaskan Oil Fields
  • Shorty-Cycle Supply
    • Low upfront costs (Few Million $)
    • Shale Fields
    • Quick to bring online
    • Very response to commodity prices in the short -term
    • Very intensive (production drops off quickly - 60-70% in 1 year) - requires lots of new drilling to keep up