When it comes to oil, the most common image is that of a valuable and expensive resource. However, not all the raw extracted in the world has a high cost. There are cases where the value per barrel is surprisingly low, almost equated to a simple bottle of water.
According to Executive Digest, one of the most notable examples is the West Qurana 1 oil field, located in southern Iraq, about 65 kilometers from Bassora. With an estimated extraction cost between 1 and 2 dollars per barrel, it is one of the world’s most efficient places in operational terms.
Geological efficiency and supergiant scale
According to the same source, West Qurana 1 is part of the Rumala-West Quest system in the Mesopotamian Basin, and is recognized for its dimension and productivity.
With an extension of about 2,400 km², this field houses several reservoirs stacked with proven reservations of around 44 billion barrels.
Professor Jorge Navarro of the Polytechnic University of Madrid explained to the Electonomist newspaper that the combination of geological, operational and infrastructural factors is crucial to maintaining costs such low. As noted, the simple geology of the site allows economic and productive perforations.
Accessible and highly productive reservoirs
Adds the publication that perforated wells access rocks with high porosity and permeability, which ensures above average production rates.
The moderate depth of the strata, between two and three kilometers, also contributes to a less costly exploration.
It writes the same source as Crude naturally flows from reservoirs, thanks to the internal pressure still present in geological structures. This prevents the need for complex technologies or stimulation processes, as occurs in other less favorable contexts.
Costs diluted by barrel produced
According to several experts cited, the West Qurana 1 exploration model allows fixed and operational costs to be diluted by large volumes of production.
This includes expenses with personnel, energy and maintenance, which, being divided by millions of barrels, make the unit cost minimal.
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Comparison with other producing regions
It refers to the same source that this field is efficiently comparable to some of the world’s largest producers, such as Saudi Arabia and Iran.
Such similarity is due not only to the dimension, but also to the quality of reservoirs and favorable geological conditions.
Ongoing expansion with Chinese technology
In September last year, China Petroleum Engineering & Construction Company (CPECC) started an expansion project to increase daily production from 550,000 to 800,000 barrels.
According to it, the strengthening of the water injection system, which is expected to go from 300,000 to 1.5 million barrels per day.
As the same source explains, this system helps maintain pressure on reservoirs and prolong your productivity. It is a common technique in mature fields, but here intensively applied to further enhance the field’s capacity.
An example of profitability and scale
This case demonstrates how the combination of favorable geology, scale and efficient management can transform a field of oil into a worldwide reference in terms of cost-effectiveness.
Its evolution in the coming months will be carefully followed by investors and analysts in the energy sector.
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