Common Issues in the Oil and Gas Industry

An oil refinery

In 2016 alone, 978 million barrels of crude oil and 8.0 trillion cubic feet of total gas was used as reported by the Railroad Commission of Texas, a regulatory agency in Texas. As of the December 2017, there are around 1700 new field discoveries for oil and gas since 2000. Of these, nine were discovered this 2017.

As more oil and gas wells are discovered, the demand for maximizing production increases as well. Some companies like Sierra Pine Resources International provide consulting services to help these companies. They also provide an evaluation of petroleum reserves and resources. Here are some common problems in the oil and gas industry that these companies try to resolve.

Decreased Production

From one barrel of crude oil, about 20 gallons of motor gasoline, 12 gallons of distillate fuel, and 4 gallons of fuel are produced. So a dip in the quantity of crude oil can result in lowering production of fuel and gasoline. One cause of a dip is when the mixture of oil and water forms emulsions.

Agents that can de-emulsify are usually added to prevent blockage, and help to continue production. Also, the presence of water in the affects it too. Another cause of decreased production is partial penetration. A well-perforated well could increase the flow of oil and gas.

Equipment Failure

Corrosion is one of the major causes of mechanical failure. Regular maintenance is the solution to prevent such corrosion. Some companies check if there is a leak by testing the pressure of the casing. Such leaks require immediate repair.

These are just some of the problems that companies such as Sierra Pine Resources International try to resolve in the oil and gas industry. In most cases, the best way to resolve problems is to ensure that the right people are giving you the best solutions.