[Daily Intel: Your Green Field Manor Ranch at coordinates 125.56, 667.22, 155.14, respectively, at depths of 160 meters, 512 meters, and 850 meters, can successfully extract shallow layer oil. Details: You need to apply for an oil drilling permit from the relevant authorities. The head of the land resource department, Weir, enjoys participating in group sports. If you can win him over, approval can be granted within 24 hours.]
Oil and natural gas are typically buried tens to thousands of meters underground in oil and gas strata.
Underground oil less than 2000 meters deep is considered shallow layer oil, mid-deep layer oil is generally found at 2000-3500 meters, and deep layer oil is found at 3500-8000 meters. However, this does not mean that the reserves of shallow layer oil are less than those of deep layer oil.
The 400-hectare manor land certainly has more than just three shallow layer oil spots underground.
Allen Zhang is still confident about this.
The three shallow layer oil spots, even if each well only produces 50 barrels of crude oil per day, would still yield 150 barrels of oil.
With the current price of oil, a barrel of crude sells for about 65-80 US dollars, giving a daily net profit of 9000-12000 US dollars. Moreover, he can drill several more wells in the nearby area to increase output, and equip them with bump machines that relentlessly pump 24 hours a day.
[Daily Intel: Alfred Waste Recycling Station’s collaboration in Queens includes recycling electronics and leaves, and a Rolls-Royce with a damaged bumper waiting for pickup. A wealthy eastern district client has a warehouse with drilling equipment and the drilling rigs and PDC drill bits you need, with a possibility of selling at a low price.]
A single alloy steel drill bit costs at least 20,000-50,000 US dollars. Quality absolutely cannot be compromised, as a faulty one could get stuck in the drill string, ruining the oil well.
But even more expensive are the rotary steering drilling tools, as well as the complete set of equipment. Shallow layer drilling rig platforms cost between 200,000-1.6 million US dollars and are capable of supporting drilling operations 200-1500 meters underground.
Large-scale drilling rigs are much more expensive, usually costing millions to tens of millions of dollars, though they’re normally not needed unless large oil fields or deep layer oil is found, which would involve drilling 3500-8000 meters underground.
The working principle of an oil drilling rig is to complete the process by rotating the drill bit and pushing the drill rod downwards, where the drill bit and rod need to continuously descend until they reach the bottom of the well, using drilling fluid to cool and lubricate. After drilling to a certain depth, cementing and casing operations are also required to enable the extraction of oil and natural gas from the well.
Subsequently, bump machines can be used to continuously extract oil 24 hours nonstop.
The operation process definitely requires professionals. However, Allen Zhang knows nothing about this; originally considering hiring mining company personnel like Old Karl, renting equipment for drilling, but those mining companies would certainly demand expensive drilling fees, charging 100 US dollars for every meter drilled, renting equipment requires signing long-term contracts and includes maintenance costs, which are too expensive.
Drilling a shallow layer oil well costs at least 30,000-500,000 US dollars, with no guarantee of striking oil, and no compensation for accidents.
If professionals are operating, it’s possible to buy equipment and drill wells oneself; most private oil field owners just buy equipment and operate it in their own yards, saving a great deal of money, but whether oil is struck is entirely down to luck.
If tens of thousands of dollars are spent to start drilling and only water is found, there’s nowhere even to cry.
But among the Beggar Gang Disciples, there just happen to be talents who have worked in oil extraction companies and mining companies, plus intelligence can reliably confirm geological positions and depths to strike oil, it’s like having x-ray vision, a guaranteed profit!
Allen Zhang immediately sent a message to Dominic, asking him to select talents from the Beggar Gang who have been involved in extraction work, to be thoroughly implemented.
It’s more reliable to use our own people.
Our Beggar Gang really is full of talents!!