The Economics of oil and gas For a layman,Unconventional Oil and Gas refers to the resources which have not been explored yet that needs to be developed and produced after the conventional process has failed to extract more oil and gas. The unconventional oil and natural gas are actually trapped in the sediments rock also known as shale. Once these resources have been identified in the form of these unconventional oil and gas, they have to be unlocked and extracted. In this unconventional method, a deep down drilling is conducted horizontally that reaches the shale which contains a large amount of oil and gas. Drilling companies need to inject water into the areas where there is a high deposit of shale and then the injected water defragments the shale. Because of the immense pressure and force, the unconventional oil and natural gas, therefore, surface upwards. Unconventional oil and gas are obtained when there is an increasing scarcity of the oil and gas using the traditional method.
In case of conventional Oil and Gas which is actually a traditional way to drill the oil, gas and other petroleum products includes a well that is being drilled. From that well, oil and gas extracted that surface upward because of the natural pressure from these valves and other pumping methods. However, these resources do not last for a long time and hence their production may decrease. Because of non-availability of the oil, the production is stopped as the benefits coming out of the production does not cover the expenses and in such cases, unconventional oil and gas extraction comes in handy.
Oil and gasare extracted under the traditional approach when there is an availability of huge amount of oil and natural gas embedded under the rock surfaces. This discovery of oil and natural gas take the years and after decades of research very few oil pools have been found so it requires an alternative means for the development and extraction of oil drilling techniques. One thing that needs to be kept in minds that though conventional and unconventional oil and natural gas are the different terminologies but they are a part of the same coin. It is to be noted that both unconventional and conventional oil and natural gas is obtained from the same demographic area. In other words, where conventional oil extraction has failed then switching to unconventional techniques can revive the production and hence make the project profitable. Source URL: https://bit.ly/2Q9UGsq