1.Exploration:This is the first stage in getting oil and gas to market.This is where Geoscientists and Petroleum engineer work together to locate and drill into location that they think will produce oil.
2.Appraisal: After they finding the traces of oil and gas they must appraisal and evaluate the commercial potential of that discovery,in dong so the determine how much oil is available, the type of oil and gas that is present and extent of field size, In short they calculate if there is sufficient hydrocarbon to justify further investment. In other word will the field produce enough hydrocarbon to help recover all the cost and still make profit.
- Development: If they determine there enough oil, they will then plan development of the field, they select where are the wells to be drilled to determine the size and extent of the field next they plan budget equipment tools and manpower needed to bring the field into production.
- Production:This is where field start to produce oil and gas or its satart actually makes money,In fact the production stage is the only stages that makes money and must make enough to support other phases and still makes profit. This stages can last from few years to decades depending on the size of the field.
5.Abandonment: When there is no longer enough producible hydrocarbon to make profit the well will be shut down.