Re: ...it's that time again/ say slowly..u n i t i z a t i o n
in response to
by
posted on
Jan 18, 2009 05:20PM
Developing large acreage positions of unconventional and conventional oil and gas resources
>C'mon, guys, think about it, An oild field needs proper developement when a well in one property can tap oil from an adjacent property.
Yes, that is just one of the reasons for unitization, but not the only reason. In fact in one of the more comprehensive articles I have, the 'tapping' problem isn't even in the list (although it does get mentioned elsewhere in the article).
ALL of the primary reasons apply to the Mako Trough.
Unitization is generally acknowledged as the best method of producing oil and gas efficiently and fairly, for the following reasons:
***** It avoids the economic waste of unnecessary well drilling and construction of related facilities that would otherwise occur under the competitive rule of capture.
***** It allows sharing of development infrastructure, thus lowering the costs of production through economies of scale and operating efficiencies.
***** It maximizes the ultimate recovery of petroleum from a field according to the best technical or engineering information, whether during primary production operations or enhanced recovery operations.
***** It gives all owners of rights in the common reservoir a fair share of the production (in U.S. terminology, it "protects correlative rights").
***** It minimizes surface use of the land and surface damages by avoiding unnecessary wells and infrastructure. (14)