Oil Exploration And Development Essay Example | Topics and Well Written Essays - 2000 words

Oil Exploration And Development - Essay Example Political, legal and economic conditions need to be researched in depth before deciding whether or not to join forces with the oil industry. Ruritania, considered a developing country, has been under the same dictatorship for over thirty years and their internal political asylum is very stable. However, neighboring countries that have Ruritania land-locked from large bodies of water, are not so predictable. Known as ‘the axis of evil’ by several peaceful governments, Urbania and Translavia border both sides of Ruritania, blocking export opportunities for the inland country. Creative negotiations will have to take place with one or both of these countries in order to work out land rights if a pipeline were considered. Intense study of oil exploration is a first step in realizing the right conditions for an oil trap. The right source rock and reservoir rock entrapment can only be done by an experienced team of geologists. The project/asset lifecycle that normally includes Field Development Planning, Conceptual/Feasibility, FEED, Detailed Design, Procurement, Construction Support and Commissioning can run into the tens or hundreds of billions of Dollars. Actual costs depend on such factors as the location of possible oil reserves, how large the oil field is expected to be, how detailed the exploration information must be and the type and structure of the rock below the ground.