Hydrocarbon Extraction
Deepwater Ops · Environmental Impact · Energy Transition
MICRO-NODE 01
Conventional Onshore
- Drilling into highly permeable, porous reservoirs
- Natural pressure drives oil to the surface initially
- Later stages require artificial lift (pumpjacks/nodding donkeys)
- Lowest extraction cost, but discoveries are plateauing
MICRO-NODE 02
Deep-Water Extraction
- Water depths exceeding 1,000 meters (e.g., KG-D6 Basin)
- Requires floating Drillships or Semi-Submersible rigs
- Massive subsea infrastructure (BOPs, manifolds) on the ocean floor
- Extreme engineering challenges: pressure, freezing temps, ocean currents
MICRO-NODE 03
Shale & Fracking
- Extracting from impermeable source rock (Shale)
- Requires Horizontal Drilling to maximize rock contact
- Hydraulic Fracturing: Injecting high-pressure water/sand/chemicals to shatter rock
- High freshwater consumption and groundwater contamination risks
MICRO-NODE 04
Enhanced Oil Recovery
- Used when natural pressure in mature fields drops
- Injecting water, steam, or CO₂ into an injection well
- Physically sweeps or thins the remaining heavy oil towards the production well
- Extends the life of aging fields (e.g., Barmer, Rajasthan)
MICRO-NODE 05
Marine Noise Pollution
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- Offshore exploration relies on Seismic Airgun Surveys
- Shoots incredibly loud sound waves into the seabed to map geology
- Severely disrupts cetacean (whale/dolphin) echolocation and communication
- Causes mass strandings and alters migration routes
MICRO-NODE 06
Blowouts & Oil Spills
- Loss of well control leading to uncontrolled release (e.g., Deepwater Horizon, Baghjan)
- Crude oil coats bird feathers and marine mammal fur, destroying insulation
- Blocks sunlight, killing phytoplankton and coral reefs
- Devastates coastal fishing economies for decades
MICRO-NODE 07
Spill Remediation
- Containment: Floating booms to corral the slick
- Recovery: Skimmer boats physically vacuum the oil
- Chemicals: Dispersants break oil into microscopic droplets (controversial)
- Bioremediation: Oil-eating bacteria (e.g., Oilzapper developed by TERI, India)
MICRO-NODE 08
Flaring & Methane Leaks
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- Associated natural gas is often burned off (flared) if unprofitable to capture
- Releases massive amounts of CO₂ and black carbon (soot)
- Fugitive Methane Leaks from pipelines are worse (Methane is 25x more potent than CO₂)
- Major contributor to E&P's carbon footprint
MICRO-NODE 09
Extraction Economics
- CAPEX: Massive upfront capital needed for deep-water rigs
- OPEX: Daily running costs of platforms and transport
- Break-even Price: Onshore (~$30/bbl), Ultra-Deepwater (~$60+/bbl)
- When global oil prices crash, deep-water projects become stranded assets
MICRO-NODE 10
Geopolitical Chokepoints
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- Production is useless without safe transport routes
- Strait of Hormuz, Malacca Strait, Suez Canal
- Militarization of extraction zones (South China Sea, Persian Gulf)
- India's OVL (ONGC Videsh) buys equity in foreign fields (Russia, Sudan, Vietnam) to secure supply
MICRO-NODE 11
Peak Oil Dynamics
- Historically feared "Peak Supply" (running out of oil)
- Now facing "Peak Demand" (transitioning away from oil)
- EV adoption and renewable grids threaten long-term E&P viability
- Forces fossil companies to extract cheapest reserves first
MICRO-NODE 12
The E&P Pivot
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- Oil companies pivoting to "Energy Companies"
- Repurposing offshore rigs for Offshore Wind substations
- Using drilling expertise for deep Geothermal Energy
- Injecting captured CO₂ into empty oil reservoirs (Carbon Capture & Storage - CCS)