We must file for and obtain all necessary state, federal, and local permits. We then have the opportunity to engage nearby residents and local governments to share information and listen to and address concerns prior to beginning operations.
Oil and natural gas production requires wastewater disposal. We recycle water where reasonable; however, when we cannot, we use regulated disposal wells and comply with applicable state regulations. When using third-party disposal wells, we evaluate the third-party operators to ensure they are approved and permitted by the applicable governmental agency and conduct audits to ensure each operator and its wells are in compliance with regulations.
We also evaluate salt water disposal wells regarding their location in relation to fault lines, and other potential seismic concerns. Bringing a well into production requires multiple steps including transporting equipment, well pad construction and completion. The drilling rig and related equipment are only placed on the site temporarily and are removed when the well is completed and begins producing. Once the well is drilled and completed, all of the surrounding land that is not needed for future operations is then returned to pre-drilling conditions and the landscape is reclaimed.
The well that remains can now produce for as long as 40 years. An open-hole completion refers to a well that is drilled to the top of the hydrocarbon reservoir. The well is then cased at this level, and left open at the bottom. Also known as top sets and barefoot completions, open-hole completions are used to reduce the cost of casing where the reservoir is solid and well-known. Cased-hole completions require casing to be run into the reservoir.
In order to achieve production, the casing and cement are perforated to allow the hydrocarbons to enter the wellstream. This process involves running a perforation gun and a reservoir locating device into the wellbore, many times via a wireline, slickline or coiled tubing.
Once the reservoir level has been reached, the gun then shoots holes in the sides of the well to allow the hydrocarbons to enter the wellstream.
The perforations can either be accomplished via firing bullets into the sides of the casing or by discharging jets, or shaped charges, into the casing. While the perforation locations have been previously defined by drilling logs, those intervals cannot be easily located through the casing and cement. To overcome this challenge, a gamma ray-collar correlation log is typically implemented to correlate with the initial log run on the well and define the locations where perforation is required.
Some wells require filtration systems in order to keep the wellstream clear of sand. In addition to running a casing with a liner, gravel packing is used to prevent sand from entering the wellstream. More complicated than cementing a well, gravel packing requires a slurry of appropriately sized pieces of coarse sand -- or gravel -- to be pumped into the well between the slotted liner of the casing and the sides of the wellbore. The wire screens of the liner and the gravel pack work together to filter out the sand that might have otherwise entered the wellstream with the hydrocarbons.
The last step in completing a well, a wellhead is installed at the surface of the well. Many times called a production tree or Christmas tree, the wellhead device includes casingheads and a tubing head combined to provide surface control of the subsurface conditions of the well. While both onshore and offshore wells are completed by production trees, offshore wells can be completed by two different types of trees: dry and wet trees.
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