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An oil well is a layman's term for any perforation through the Earth's surface designed to find and release both petroleum oil and gas hydrocarbons.
The well is created by drilling a hole (5 to 30 inches) into the earth with a drilling rig turning a drill bit. After the hole is drilled, metal pipe called 'casing' is cemented into the hole. In order to get access to the hydrocarbon producing interval, the casing and cement are either perforated ('cased hole completion') or additional section of earth is drilled below the casing ('open hole completion'). In most cases several casings are set in the well, starting with large shallow casing, and then deeper casings are set in smaller holes drilled through the upper casings.
To drill the well, a) the drill bit, breaks up the earth (which is then pumped out of the hole) and extends the well; b) the pipe or drill string to which the bit is attached is gradually lengthened as the well gets deeper; and c) the rig which fulfills the role of superstructure bearing the load of the drill string and also contains machinery to rotate or percuss the drill string.
The earliest oil wells were drilled percussively, that is, holes were drilled simply by hammering at the earth. Very soon, the limited depths which this method could attain meant that rotary drills were introduced. Modern wells drilled using rotary drills can achieve lengths of over 10 kilometres.
Until the 1970s, most oil wells were vertical (or, more specifically, were supposed to be vertical — deviations introduced by different lithologies and mechanical imperfections meant that most wells were at least slightly deviated). However, modern technologies allow strongly deviated wells which can, given sufficient depth, actually become horizontal. This is of great value as the reservoir rocks which contain hydrocarbons are usually horizontal, or sub-horizontal. A well, therefore, which passes along a reservoir (rather than through it, as a vertical well must) can tap a larger volume with a much larger surface area (and thus a correspondingly higher productive rate).
After drilling the well, 'tubing' (smaller diameter pipe, from 2.5 to 7 inched diameter) is typically run into the well and packed off at the base, inside the casing. The well produces up through the tubing. This arrangement provides a redundant barrier to leaks of hydrocarbons as well as allowing damaged sections to be replaced.
Oil wells can be characterized as
Modern oil wells are extremely expensive to build and maintain, due partly to the cost of the technologies in active use today, but also to the increasingly inclement climates and harsh environments that are today being explored for oil and gas. The following is a quick comparison of average well costs for the UK Continental Shelf (UKCS), based on values from March 1998:
| Well location | Typical cost (in millions of £) |
|---|---|
| Northern North Sea | 8–12 |
| West of Shetlands | 5–15 |
| Southern North Sea | 7–12 |
| Irish Sea | 2–3 |
These costs are exclusive of any testing (i.e. flow rate testing) and are clearly extremely high. The absolute cost is largely a reflection of the remoteness of the location being drilled, hence the relative cheapness of the Irish Sea (shallow water, close to coast) in comparison to the West of Shetlands (deep water, long way from coast and other facilities).
Oil companies do not generally own their own oil rigs, rather they tend to rent them from service companies. Typical rent costs for an oil rig in 2000 were upwards of £90,000 per day.
Some evidence suggests that offshore oil wells may be partly responsible for whale beaching.