Mechanical Engineering Sample Test 2 assesses knowledge in drilling processes for oil\/gas wells. Topics include site selection, rigging, casing, and drilling techniques. Essential for learners aiming to understand practical aspects of petroleum engineering.
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Mudding
Cutting
Derrick
Casing
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Drilling directional or horizontal wells, though more expensive than drilling a conventional well, can increase access to deposits and increase oil/gas resources recovered substantially.
Water depth is the primary determinant of cost in offshore drilling.
Old oil/gas wells are used to store CO2 and natural gas.
Directional drilling is less suitable offshore than it is onshore because of the lack of stability of the platform.
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Safety
Route Selection
Storage
Station Location
Elevation/Landscape
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Seismic study is done to confirm existence of reserves.
Water source is established.
Site is cleared and staked.
Access roads are built.
A truck-mounted drill is inserted into the ground.
Drilling contract is signed.
Waste disposal is setup.
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E&P Partnership
Pooled Corporation
Limited Liability Partnership
Master Limited Partnership
Limited Liability Corporation
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30
50
100
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The number of pipeline stations built is determined by the number of Hydraulic Center Points.
The number of Hydraulic Center Points is determined by the number of Pipeline Stations built.
The number of HCPs and Pipeline Stations are determined and drafted in the design document.
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Right of Way (ROW): The acquisition of property and construction rights.
Investments
Costs of Operation.
Construction costs.
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Secondary Lines
Hubs
Spur Lines
Legs
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0.5% to 1%
2% to 3%
0.7% to 1.6%
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It is the delivery point for paper NYMEX crude oil futures contracts.
Its function as a gathering hub for crude refiners in Oklahoma, Missouri, and Kansas.
It's proximity to the Gulf Coast.
Logistic connection main refineries in Indiana, Illinois and Ohio.
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Elimination of EPAA price controls
Iraq invading Kuwait
Arab oil embargo
The Asian Financial Crisis
OPEC raising prices.
The Gulf War
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Prior to the emergence of WTI as a benchmark, trading was limited to optimizing logistics.
WTI was a benchmark before EPAA controls were removed.
The NYMEX WTI contract was created in March 1983.
The availabilty of fundamental analysis via research organizations such as Platts helped to heighten interest in WTI futures.
Pipeline construction helped increase the relevance of the Cushing Hub.
Products that pass through the Cushing Hub and mostly international
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173 billion
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143 billion
153 billion
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The first 20 to 100 feet are drilled using a truck-mounted rig.
The rig is mounted.
The rotary drill bit hits the ground.
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USGC Parity
Cushing parity
Chicago Parity
Texas Parity
Patoka Parity
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Tar sand
Oil sand
Synthetic Crude Oil
Coke
Asphalt
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Natural Gas Storage can be both Seasonal and Operational.
Pipelines prefer to have storage close to areas of consumption.
Compared to oil, natural gas is easy to store and transport.
Hydraulic Center points are easier to find in gas pipelines than oil pipelines.
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General Partner
Board of Management
Joint Management Group
Operator(s)
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Less than 0.1%
Less than 0.3%
Less than 0.6%
Less than 0.8%
Less than 1%
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35 billion
54 billion
87 billion
53 billion
67 billion
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1999 - 2007
1970 - 1980
1981 - 1986
1986 - 1999
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Benchmarking
Swing Pricing
Geographic Pricing
Parity Pricing
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