Most of the money spent by the petroleum industry is used for finding oil and most of that money is used for geophysics (the physics of the earth). Geophysics provides techniques for imaging the subsurface (seeing below the ground) before drilling, and this can be key in avoiding drilling what are called "dry holes." What is generally not realized by the public, is that most of the holes drilled for oil are dry and do not yield commercial oil or gas.
Locating an oil and gas reservoir and drilling oil and gas wells is very expensive. That is why it is so important to utilize state-of-the art exploration and production technologies to keep costs as low as possible. Many large oil companies use some of the world's largest and fastest supercomputers to process seismic data and to produce accurate images that identify the best location and trajectory for drilling wells. In complex regions like the North Sea and Gulf of Mexico, advanced 3-D seismic imaging has played a key role in locating wells and in reducing finding and development costs.
When considering an area for drilling, oil companies typically begin by collecting and analyzing geologic, production and commercial data on an entire geological basin, a likely place for oil and gas to have collected over millions of years. This often includes satellite photographs, gravity and magnetometric information, plus existing various types of seismic data. From this information, a basin model is formed to help assess the potential for oil and gas. If it shows promise, the company conducts a seismic program that includes 2-D, 3-D or 4-D data. If oil and gas are discovered, additional technologies help determine the best plan for utilizing the reservoir.
The technologies indicate the most likely ways to get long-term production and financial returns. But an adecuate sequence of tasks from the first day shows the best way to create value.
