Action Steps
The best contacts and resources to help you get it done

Realize the tax benefits available to oil and gas exploration companies

Locating untapped energy resources is imperative for domestic consumption and lower consumer costs leading to tax exemptions and credits to entice oil gas exploration companies to increase exploration activities. Getting some of the money back on your investment will not only add to your profit margin but make cuts to oil and gas exploration lenders less painful. Your business can only take advantage of these tax breaks if you are educated on the matter.

I recommend: Read about the tax advantages of oil and gas development at The Energy Exchange. Take a look at an article provided by the Oil & Gas Financial Journal describing tax benefits to be derived from like-kind exchanges.

Learn how to inform the public about your oil, gas exploration development

Undertaking energy exploration activities is costly and not always in the public eye. Informing stakeholders, consumers and the media about your business's petroleum exploration and oilfield development activities is necessary to ensure transparency and goodwill. Companies specializing in public relations services will publish articles in industry journals on your behalf and handle media questions and concerns, especially in time of a business crisis.

I recommend: See how Petroleum Art can help your business with its news and public relations services. View the services provided by Write2Market, a business writing company that aids in the public relations aspect of exploration for oil and gas.

Increase efficiency in your business's oil exploration activities

Maximizing your business's production and profitability is critical for successful exploration endeavors. There are a number of companies that can help your business with specialized software applications. It is important to understand how your business can benefit from such services before beginning domestic or international oil and gas exploration activities.

I recommend: View the services available at Microsoft Office Online to understand how your business can become more efficient in its energy exploration endeavors. Learn how Ambercore Software can increase your business's exploration proficiency.

Helpful advice for making the most of this Guide

• •  It is important to understand that companies specializing in oil and gas exploration services can tailor plans and software applications to meet your specific business needs. You do not need to settle for a universal application or public relations plan so be upfront with the company or companies you are working with to ensure your business is getting what it needs.

1. Microhole drilling technology for low-cost, low-impact exploration
2. Development of deep well drilling components
3. Seismic and remote sensing technologies to decrease the number of dry holes
   

Action Steps
The best contacts and resources to help you get it done

Cut recovery costs with microhole drilling oil exploration

The benefits of microhole drilling are two-fold. This technology affords the use of less unwieldy equipment and smaller crews, making it more economically-feasible to drill for hard-to-reach reserves. In addition, it minimizes environmental impact, and that alone could open up some oil and gas exploration opportunities in environmentally-susceptible areas.

I recommend: The Petroleum Technology Transfer Council is participating in a study to evaluate the feasibility of using coiled tubing rigs in microhole exploration for oil and gas. Research proved that microhole coiled tubing drilling technology can be used to reclaim thousands of reservoirs bypassed by conventional oil and gas exploration methods. Canadian-based Xtreme Coil Drilling Corp., has started deploying their coiled tube rigs in the United States to further the effort.

Improve deep well drilling technology for gas exploration

Natural gas production in conventional wells has been steadily decreasing. This makes it necessary to explore deep well drilling for natural gas exploration. Unfortunately, this presents a number of problems due to the extreme depths that must be targeted. Very hard rock, extreme temperatures and fierce pressure take their toll on traditional drilling equipment.

I recommend: The Department of Energy created the Deep Trek program to develop new technologies relating to deep well drilling. Honeywell International, a program participant, has developed a set of electronic components to be used in conjunction with deep well drilling equipment. These electronic chips can withstand the intense pressure and will allow access to untapped reservoirs deep in the earth.

Utilize seismic technology to pinpoint locations for deep oil and gas exploration

Oil and gas exploration companies recognize the need to drill for deeper reservoirs; however, advanced technology is necessary to locate these deep resources. New seismic technology allows companies involved in oil and gas exploration services to pinpoint commercial quantities of fossil fuels before drilling.

I recommend: This new seismic technology is available through Rock Solid Images' iMOSS software; it exemplifies a significant improvement in detecting deep resources. Paulsson Geophysical Services, Inc., has also developed new vertical seismic technology that reduces downhole time required for seismic surveys in gas exploration.

Helpful advice for making the most of this Guide

• •  The American Petroleum Institute is a good source of information on new advancements in energy exploration along with the suppliers, operators and service companies that serve the oil and gas industry.

Action Steps
The best contacts and resources to help you get it done

Obtain oil and gas exploration information online

Educate yourself about oil gas exploration development by utilizing online resources. The Internet provides a wealth of information about domestic and international oil and gas. Understanding the basics, policy issues, economic impacts and markets is a promising starting point for your business's petroleum exploration undertakings.

I recommend: Naturalgas.org provides a concise overview of petroleum and natural gas exploration. Learn about important policy issues, facts about non-producing leases, strategic energy resources and markets/economic impacts related to exploration and production at the American Petroleum Institute. View an article provided by GeoTimes highlighting a new frontier in oil and gas exploration.

Understand the environmental impact of exploration for oil and gas

Realizing how oil development and exploration affect the environment and surrounding wildlife is critical for any business planning to take advantage of offshore or inland energy resources. Understanding these affects and using technologies that minimize such impacts is worthwhile for your business to ward against unwanted publicity and ensure beneficial public relations. View online resources to become better acquainted with the environmental impacts of oil and gas exploration before deciding what technologies will work best for your business.

I recommend: Download a publication provided by OSPAR Commission entitled, "Environmental Impact of Oil and Gas Activities other than Pollution." Visit the U.S. Department of Energy and learn about oil and natural gas environmental protection programs. You can also access links to specific programs geared toward protecting water and land resources as well as air quality.

View case studies of oil and gas exploration companies

Exploring for oil and gas is the most costly activity in the development and production of energy resources. Obtaining a company specializing in oil and gas exploration services may be advantageous for your business's bottom line. Gain a better understanding of how other businesses have benefited from outsourcing exploration activities by viewing case studies. Read through these studies and online resources so your business can learn from others' experiences.

I recommend: Visit Fugro Airborne Surveys to view case studies about companies that have utilized airborne geophysical survey services to aid in their oil and gas exploration endeavors. Download a case study about reducing oil exploration risk at ZDNET.

Helpful advice for making the most of this Guide

• •  If your business has trouble bankrolling oil and gas exploration activities, take advantage of oil and gas exploration lenders. You will have to provide some of your profits to contributing lenders but you will minimize the cost of operations for your business.

Action Steps
The best contacts and resources to help you get it done

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

The 1980 CERCLA is an expansion of RCRA, the Resources Conservation and Recovery Act of 1976. This act outlines the duties of companies that transport, store, treat or dispose of regulated hazardous substances, including some oilfield materials.

I recommend: The Environmental Protection Agency includes a detailed account of the act and its intended results and influences.

Minerals Management Service (MMS)

The MMS is a branch of the United States Lands and Mineral Management Department. To manage and supervise the country's national resources, the MMS oversees oil and gas leasing, royalty collection and other areas involving the oil and gas industry, such as drilling permits.

I recommend: See the Minerals Management Service website for greater detail.

Upstream

Upstream is another term for the exploration and production, or E&P, part of the oil and natural gas industry.

I recommend: PFC Energy advises companies on upstream operations.

Hydrophone

Hydrophones are underwater microphones used to calculate distances and shapes so geologists can find locations appropriate for drilling.

I recommend: Take a look at the Schlumberger Limited oilfield glossary for a detailed description of this and other oil and gas terminology.

Exploratory well, or wildcat well

Oil and gas companies drill exploratory wells to find new reserves. The well could be in a spot that does not have proven oil or gas reservoirs, or it might be used in an effort expand a proven reserve.

I recommend: Energy Bulletin published a story about an exploratory well that failed to turn up an oil reserve.

Acoustic or seismic survey

These types of surveys are used in oil and gas exploration to essentially map up to 40 kilometers under the ocean floor. Acoustic or seismic surveys use sound waves made by airguns. Hydrophones are used to pick up the echoes. The echoes are then processed to find out what geological structures are under the ocean.

I recommend: The Acoustic Ecology Institute offer news and research to help policy makers or other interested individuals stay informed.