Gas & Oil Industry

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Crude oil and natural gas are naturally occurring substances present in rock amid the earth's crust. Oil and gas are organic materials, and are the result of the remains of plants and animals compressed in sedimentary rock such as sandstone, limestone and shale.

Sedimentary rock is a product of sediment deposits in ancient oceans and other bodies of water. As layers of sediment were deposited on the ocean floor, decaying remains of plants and animals were integrated into the forming rock. This organic material eventually transformed into oil and gas after being exposed to specific temperatures and pressure ranges deep within the earth's crust.

Oil and gas are less dense than water, which occurs in huge quantities in the earth's subsurface, so they migrate through porous sedimentary source rock toward the earth's surface. When the hydrocarbons are trapped beneath less-porous cap rock, an oil and gas reservoir is formed. These reservoirs, which are simply layers of rock containing large quantities of oil and gas, are our sources for crude oil and gas.

To bring the hydrocarbons to the surface, a well must be drilled through the cap rock and into the reservoir. Drilling rigs work in a similar fashion as a hand drill. A drill bit is attached to a series of drill pipes, and the whole thing is rotated to make a well in the rock. Once the drill bit reaches the reservoir, a productive oil or gas well can be completed, and the hydrocarbons can be pumped to the surface.

Read more: How the Oil and Gas Industry Works | Investopedia 
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