While the US oil production is at an all-time high and the country has become a net exporter of oil, it seems to the perfect time for investors to turn to direct investments in oil and gas. The only challenge for an investor is finding promising oil and gas investment opportunities. That is when you need a reputable oil and gas investment company such as FIG Tree Capital Ventures. Whether you are looking for oil and gas investments in North Dakota or Texas, any other region, we are here to guide the way. On that note, we present to you part-1 of this 2-part series covering some must-know terms related to the energy sector. Read on.
Drilling Mud
The drilling mud is a mixture of water, clay, and some chemical additives, which is pumped down the drill pipe and drill bit while drilling, to cool the drill bit and lubricate the drill pipe as it keeps turning. The mud also serves as a plaster to prevent the wall of the bore hole from crumbling or collapsing.
Dry-Hole Cost
The dry-hole cost, also known as drilling cost, is the total cost of drilling a well, no matter whether the drillers find any oil or gas. If any energy resources are found and extracted from the well, completion costs are added to the dry-hole costs to calculate overall costs.
Gas-Cut Mud
Gas-cut mud is a formed when drilling mud gets aerated or charged with gas from formations down hole, forming bubbles in the drilling fluid. The formation of gas-cut mud is an indication of commercial quantities of gas present in the formation.
Hydraulic Fracturing
Hydraulic Fracturing is a method of inducing fractures and fissures in the formation to force the strata apart, aimed at stimulating oil and gas production from a formation of low permeability.
Ready to Invest in the Oil and Gas Industry?
We hope the first part of this 2-part series on commonly used terms in the oil and gas industry help you get started on the right foot. If you are an accredited investor or high networth individual, contact FIG Tree Capital Ventures to invest in some of the most promising oil and gas investment opportunities in the US. Explore our existing our oil and gas investment projects in North Dakota and other parts of the US. To learn more, fill out our contact form or simply call (866) 304-9194.
