3. The Life Cycle of Oil and Gas Fields
• Things don't always go according to plan in oil and gas production. Some
reservoirs will produce up to 10% to 20% more oil or gas than expected, while
others may produce a great deal less than initially estimated.
• There are many reasons for this unpredictability. Oil and gas fields contain
residual water, which is driven up the well with the hydrocarbons. After time,
there may be more water and less oil or gas. The cost of extracting and separating
the water out can result in a loss-making operation. In addition, at some sites the
natural gas extracted is not intended for sale. Yet, gas production at these fields
can sometimes spike, which means that less oil is produced.
5. Actors
State Oil industry Supply chain Community
1. National
government
2. Local government
3. National Oil
Companies (NOCs)
1. Contractor
2. Operator
3. National Oil Companies
(NOCs)
4. International Oil
companies (IOCs)
5. Oil and Gas industry
associations
1. International companies
2. Local companies
1. Local community
2. Local/national CSOs &
service providers
3. International NGOs,
watchdogs &
development agencies
7. 3 categories of non-revenue benefit across the
lifecycle:
• Job creation and local content (supply chain)
• Infrastructure development
• Social investment