Primary Recovery

Dictionary Says

Definition of 'Primary Recovery'


The first stage of oil and gas production, in which natural reservoir drives are used to recover hydrocarbons. Due to the difference in pressure within the reservoir and at the bottom of the well, hydrocarbons are driven towards the well and to the surface. During primary recovery, typically only 5-15% of initial hydrocarbons are produced for oil reservoirs.

Also called primary production.



Investopedia Says

Investopedia explains 'Primary Recovery'


Oil and gas companies will expend less money retrieving the resources from the ground during this initial phase. As production continues the reservoir pressure will decrease and hence the differential pressure decreases, which may necessitate the use of a pump to increase production. The limit for primary recovery is generally reached either when the reservoir pressure is too low, or the mix of gas or water in the output stream is too high. The next stage then involves the use of secondary recovery techniques such as gas injection or flooding.

comments powered by Disqus
Hot Definitions
  1. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  2. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  3. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  4. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  5. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  6. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
Trading Center