Oil Field Development
The oilfield services and equipment (OFC) industry generally refer to the downstream supply of goods and service associated with the gas and oil exploration and extraction operation, i.e., upstream. In addition, the term oilfield can also be used in connection with the Offshore oil field and Offshore rigs. This refers to operations taking place far from land. In United States, there are many energy companies involved in activities in the Permian Basin, which are located in the United States. Among them, four companies have been identified as being major players in the industry, namely; Enron, isco, Huffman Petroleum Corporation and Schlumberger Energy Solutions.
These four companies have been identified as among the top contenders for the development and implementation of the Permian basin natural gas and oilfield services. With respect to the competition, these companies aim at providing customers or potential clients with the best value of their money by using the most advanced drilling techniques, equipment and technologies and developing their own niche in the market. However, since no two project can produce the same results; each company has unique plans to gain maximum share of the market. In this regard, they differ in terms of their natural gas resource selection, their rig count and the applications and types of drilling methods used on their projects.
Most people think that natural gas is a gas that is produced from the ground; however, it is a liquid that is trapped underground. Natural gas is a very important commodity, because it helps in global warming. For this reason, it is being used as a source of heating appliances and transport. Because of this reason, people think that oil companies should develop natural gas supplies using the most advanced drilling rigs in order to meet the demands. As far as the demand for natural gas is concerned, it is increasing in countries like China, India and Indonesia. This means that the oil companies should be focusing on those areas where the population is increasing so that they can increase their revenues.
There are many challenges faced by the oilfield manager during the development of their crude oil infrastructure project. These challenges include selecting the most cost-efficient and safest site for the infrastructure, finding an area that does not face any negative effects from climate change and choosing a geophysical platform that has the best potential for drilling in geothermal areas. All these factors affect the choice of oilfield development site and determine the level of difficulty associated with it.
Another factor that is commonly overlooked is the transportation of natural gas from oil wells to homes, establishments and other locations. Due to the high price of crude oil, transferring the fuel needs is costly. In addition, there are restrictions imposed on the transportation of natural gas to avoid pollution. Therefore, it is necessary to develop oilfield infrastructure that allows you to transfer the fuel to wherever you need it. Transportation of the oil is therefore a key issue in oilfield development.
With the increase in the demand for crude oil, the competition in the oil industry is very high and the chances for success are great. There are now almost 100 companies engaged in the oil industry in the Middle East. This competition has increased efficiency and profit sharing for all the oil companies. The increasing demand for petroleum products has led to the development of oil fields in the Middle East such as Iraq and Saudi Arabia. The rising demand in Middle East for crude oil coupled with new discoveries of large oil wells in the Middle East have made the oil industry one of the most important industries in the world.
Development of oilfields has increased due to the increasing demand for oil products and the lack of drilling rigs in the Middle East. The absence of drilling rigs results in the absence of natural gas and high prices for natural gas. In fact, natural gas is a major factor responsible for the cheaper price of crude oil. This is why companies involved in the oil industry in the Middle East are trying hard to find new supplies of natural gas. Some countries such as Iraq and Saudi Arabia have natural gas supplies, but they are also dependent on the inflow of imports from oil-consuming countries.
Another reason that results in an increase in the demand for crude is the rising demands from nations like India and China for hydrocarbons. In fact, India and China are the world’s largest users of crude oil. Recent studies claim that India is going to become the world’s biggest natural gas consumer. As a result, the Indian government has been spending heavily on improving the infrastructure of oil fields and exploring for more hydrocarbons.