You may have seen images of black crude oil gushing out of the ground, or seen an oil well in movies and television shows like "Giant," "Oklahoma Crude," "Armageddon" and "Beverly Hillbillies." But modern oil production is quite different from the way it's portrayed in the movies. If oil prices keep falling, at some point it's not profitable to pull it out of the ground. But we're not there yet, according to an analysis of production costs by an energy consulting firm. In fact, even if the Brent price index falls another 20 percent from Friday's closing price—to $40 Drill for oil. If the findings of the geologist and geophysicist determine there is a high probability oil exists on your property, you can drill for it. Depending on what depth oil is predicted, you may need to use a drilling rig. Oil can be 2,000 to 4,000 meters deep. In some cases, a drill may even need to go 6,000 or more meters deep. But gas and oil are also trapped in the spaces within impermeable shale rock. Therefore, because shale is impermeable, simply drilling down to it is not enough to extract these deposits. Instead the process of hydraulic fracturing, known commonly as fracking, is used. The rock has to be fractured to get the gas or oil out. Now prices barely cover the average cost to get the oil out of the ground in places like the U.K. Additional expenses, like taxes on profits, mean that the actual breakeven price for many projects is higher, and newer and more complex projects generally fall well above the average cash cost of production.

The real question, then, is how much crude oil can drilling companies get out of the ground profitably? If the cost and energy required to draw out a barrel of oil is more than what the market will pay for that barrel of oil, no one is going to pull it out of the ground.

Now prices barely cover the average cost to get the oil out of the ground in places like the U.K. Additional expenses, like taxes on profits, mean that the actual breakeven price for many projects is higher, and newer and more complex projects generally fall well above the average cash cost of production. Many steps are necessary to get oil to consumers around the world in forms that they can use. Products such as gasoline, diesel fuel, heating oil, and jet fuel, among others, all begin as crude oil in underground reservoirs. To get to consumers, oil needs to be pumped out of the ground, transported, refined, and delivered to consumers. The energy to extract crude oil from the ground varies greatly from one well to another and from one time to another. We all have seen videos of gushing oil coming out of a well when it is first drilled. In this case and for some period of time the oil extracts itself from the ground. In 2008 alone, the United States produced an estimated 4.9 million barrels of crude oil per day and imported 9.8 million barrels per day from other countries [source: U.S. Energy Information Administration]. This oil gets refined into gasoline, kerosene, heating oil and other products. To keep up with our consumption, oil companies must constantly look for new sources of petroleum, as well as improve the production of existing wells.

Crude oil entered a new and powerful uptrend in 1999, rising to an all-time high at $157.73 in June 2008. It then dropped into a massive trading range between that level and the upper $20s

11 Feb 2020 After oil is extracted from the ground during the production phase, the of oil equivalent to 1 million barrels of crude oil have been plying the 

Liquid petroleum pumped from oil wells is called “crude” or "crude oil." At the molecular level, crude oil is composed predominantly of carbon, which can make  

1 Apr 2009 Squeezing More Oil Out of the Ground most people think, and the key to tapping that crude is the development of new technologies. And leaps in extraction technology have led to tapping oil in once-inaccessible areas  5 Oct 2018 Crude oil comes out of the ground with impurities, from sulfur to sand. These components have to be separated. This is done by heating the crude 

7 Sep 2012 Conventional oil and gas refers to petroleum, or crude oil, and raw natural gas extracted from the ground by conventional means and methods.

The crude oil and gas need to be separated before they can be transported safely. Which rocks are porous and could make good reservoir rock? Plan an 

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