The BNMA BN Repository
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1 BN found.
The following is a simplified model of a typical Oil & Gas mining problem. Firstly, the exploration process aims to identify regions with high probability of success (survey). These regions can be inland or off-shore and typically, after being identified, are expected to consist of one or more sweet-spots. Secondly, an initial drill (testing) at the location in question is carried out to determine if sufficient levels of hydrocarbons exist to allow extraction to be a long term option. This is followed by further drills (drill) eventually leading to production.
The costs associated with drilling are variable depending on drilling conditions and variability of the underlying soil layers and are usually very high. Additionally, drilling can be unsuccessful due to blow-outs, issues with equipment (insufficient, failure) and other accidents. These aspects are accounted for via costs and are built into the utility nodes.