Oil Exploration

By: EconomyWatch   Date: 30 June 2010

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Oil exploration involves geological studies and technical examinations to detect the presence of crude oil. The exploration and extraction of oil is an expensive and high-risk operation and the industry comprises mainly of big corporations.

Oil Exploration: The Process

Oil is found in geological formations at variable depths in the earth’s crust. The presence of oil is usually identified by visible features such as gas oozes, oil seeps and crater formations due to gas leakage. Typically, oil is found trapped within layers of porous sandstone, which lies in the bed of non-porous sediments. Natural gas is present below the non-porous layer and just above the oil surface. Also, at times oil tends to break the layer crust to reveal its presence.

Once the initial geological studies confirm the presence of oil, sophisticated technology is employed to determine the quantity and depth. The branch of science that deals with the study of oil exploration is called ‘exploration geophysics.’ The possible location of oil exploration is subjected to various geology surveys such as magnetic survey, seismic reflection survey and gravity survey. At a higher stage, elaborate seismic surveys are conducted to measure the time taken by sound waves to travel through matter. If the presence of oil is confirmed, the site is transferred to an oil exploration company.

Oil extraction requires the deployment of heavy machines and the drilling of oil wells. First, natural gas is extracted through pipes and later crude oil.

Major Oil Exploration Sites

Oil fields are scattered across the globe. Some of the biggest oil exploration sites are:

  • Ghawar field: Located in Saudi Arabia, the Ghawar field is the largest known oil field in the world. The nationalized oil company, Saudi Aramco, own and operates this oil site. It was discovered in 1948 and operations commenced in 1951. As per 2008 figures, five million barrels of oil is excavated from the Ghawar field every day. Although little information is available on oil reserves at the site, the Saudi government claims it to be 75-80 billion barrels.

  • Burgan field: Discovered in 1938, the Burgan field is the biggest oil extraction site in Kuwait. It has a production capacity of 1.7 million barrels per day, which is declining at the rate of 14% annually. Approximately 66-72 billion barrels of oil reserves are estimated to be available at the Burgan field.


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