Investing In Oil Well

Written by Tara Peris
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Investing in oil well development, especially the exploration and enhancement of wells in the United States, is a smart business move. The Department of Energy has indicated that there is a considerable amount of untapped land, and that many existing wells are in need of renovation in order to remain profitable. Thus, there are numerous paths by which you can forge your crude oil future by investing in oil wells.

To understand how investing in oil wells works, you need to have a basic understanding of just how wells function. There are three main stages of oil production at a given reservoir. These stages include primary recovery, secondary recovery, and a final stage of enhanced recovery.

Know How They Work Before Investing in Oil Wells

During the first stage, oil is pushed into the wellbore via gravity, and pumps are used to bring this oil to the surface. As this typically is only minimally effective, the secondary recovery phase is needed. During this stage, water is employed to flush out oil and get it into the wellbore.

If these techniques don't work, or if there remains a desire to extract additional oil, enhanced recovery techniques may be utilized. These techniques vary, but usually fall into three major classes: thermal recovery, gas injection, and chemical injection. Maintaining a basic understanding of these processes is sure to facilitate a successful oil well investment.


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