Once a suitable well location has been identified, permitted, and leased, the next steps for oil and natural gas development are drilling, completion, and production:
Drilling typically takes about 50-60 days. It starts with preparing the site (clearing and leveling) and setting up a drilling rig to drill a borehole and feed steel pipe into the well. Drilling mud is used to manage downhole pressures, provide information about the rock layers being drilled through, and keep the drill bit cool. Safety equipment, such as a blowout preventer, is installed to prevent oil and natural gas from being released in rare unexpected overpressure situations.Completion is a 1-5 week process where the steel pipe in the well is perforated to connect the well bore to the oil or gas reservoir. As needed, additional recovery techniques such as hydraulic fracturing (for low permeability reservoirs) or steam flooding (for thick oil) are applied. A Christmas Tree (series of valves) is installed at the top of the well. As reservoir pressure declines, a pumpjack is installed.Production from a completed well can last 50+ years. During the production step, the well is monitored, maintained, and managed. In the U.S. the mineral rights owners (individuals) typically receive royalty interest payments on the oil and natural gas produced. In most other countries, the federal government owns the mineral rights.