Milestone 3: Identifying Variables
Completion Date: March 27, 2008
Below is an attempt to indentify the variable, and types of variables, that are considered when searching for oil.
- Is it in a Sedimentary Basin? Boolean; yes is good, no is not good.
- Are there other producing wells in the area (Well Spots)? Boolean; yes is good, no is not good, although still would consider drilling there... would then be considered "wildcat."
- Wilccats are more risky investment, but have better payoff.
- Are current oil prices high? Range; the higher the better since the return on investment would greater.
- How close to the ground is the potential oil? Range; the higher the better since it costs more to drill deeper.
- Subsea Data ?? Not sure how this effects decision.
- Client stated that he "connects the dots" when Well Spot points are on a map; allows him to visualize the area of a possible oil/gas prospect.
- Do hydrocarbon "shows" exist in wells on the outside of the connected dot area? Range; higher the better. If so, that means the deposit has a structure (known as a trap) and will be more likely to produce.
- Are mineral rights owned by the state? Boolean; no is good, yes is not good.
- Are mineral rights owned by any big oil company? Boolean; no is good, yes is not good.
- Is seismic data available? Boolean; yes is good, no is not good. If no then seismic data needs to be "shot" in the area, which increases the cost of the project.
- Does seismic data have glacial effect? Boolean; no is good, yes is bad.