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How To Make Money on Oil Extraction (make $10,000 on Oil Extraction)

 

Oil is produced (extracted) using different methods depending on geology and location. After recovering the oil, it is sent to refineries to create refined products we use every day, such as gasoline.

The first efforts to tap the oil sands resource began in the mid 20th century using hot water to separate bitumen from sand. Since then the process has evolved into the sophisticated methods we use to extract oil today.

WHAT IS OIL?

Oil is a black, brownish or amber liquid. A complex mix of hydrocarbons including carbon, hydrogen, sulphur, nitrogen, oxygen and metals, oil formed millions of years ago from animal and plant remains deposited in sand and silt, and pressurized by layers of sedimentary rock.

Oil is classified as light, medium, heavy or extra heavy. Light and medium oil can flow naturally to the earth’s surface and is generally extracted from the ground using vertical drilling and pumping – this includes Canada’s offshore oil. Some light oil is trapped in “tight” (non-porous) rock formations, usually shale. This “light tight oil” can be recovered using horizontal drilling and hydraulic fracturing. Heavy oil has a thick consistency that does not flow easily, often requiring advanced technology to extract.

The Canadian regions with tight oil reservoirs include the Bakken, which is found primarily in Saskatchewan; several fields in Alberta including Cardium and Viking; and the Montney and Duvernay in Alberta and B.C.

How is Oil Extracted?

Oil is recovered (extracted) using different methods, mostly depending on geology.

CONVENTIONAL OIL

Conventional oil is extracted from underground reservoirs using traditional drilling and pumping methods. Conventional oil is a liquid at atmospheric temperature and pressure, so it can flow through a wellbore and a pipeline – unlike bitumen (oil sands oil) which is too thick to flow without being heated or diluted. It’s easier and less expensive to recover conventional oil and it requires less processing after extraction. Conventional oil development is both land-based and offshore.

UNCONVENTIONAL OIL

Unconventional oil cannot be recovered using conventional drilling and pumping methods. Advanced extraction techniques, such as oil sands mining and in situ development, are used to recover heavier oil that does not flow on its own. Oil found in geological formations that make it more difficult to extract, such as light tight oil (LTO), is also called unconventional oil because non-traditional techniques are needed to extract the oil from the underground reservoir. Light tight oil is found throughout much of the Western Canadian Sedimentary Basin (WCSB), plus in Central and Eastern Canada. LTO is found deep below the earth’s surface, primarily within low-permeability rock formations including shale, sandstone and mudstone reservoirs. This kind of oil extraction uses horizontal drilling and hydraulic fracturing.

Surface Mining

Oil recovery in the oil sands uses two main methods: mining or in situ, depending on how deep the oil sands deposits are.

Surface mining is used when oil sands deposits lie within 70 meters (200 feet) of the earth’s surface. Twenty per cent of oil sands reserves are close enough to the surface to be mined. Large shovels scoop oil sand into haul trucks that transport it to crushers where large clumps are broken down. The oil sand is then mixed with hot water and pumped by pipeline to a plant called an upgrader, where the bitumen (oil) is separated from the other components such as sand, clay and water.

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