Primary Recovery

AAA

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 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.

RELATED TERMS
  1. Unconventional Oil

    A type of petroleum that is produced or obtained through techniques ...
  2. Oil Shale

    A type of sedimentary rock composed chiefly of a combination ...
  3. Commercial Well

    Any oil or gas drilling site that produces enough oil or gas ...
  4. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  5. Enhanced Oil Recovery - EOR

    Enhanced oil recovery (EOR) is the process of obtaining stranded ...
  6. 1979 energy crisis

    The 1979 energy crisis in the U.S. was an event of widespread ...
RELATED FAQS
  1. How can traders use contango to take advantage of the storage shortage for crude ...

    Traders with access to physical oil and storage can make substantial profits in a contango market. Other traders may seek ... Read Full Answer >>
  2. What are the primary factors that drive prices in the gold industry?

    Gold has been one of the most sought-after commodities for centuries. It has been used to prop up currencies for countries ... Read Full Answer >>
  3. What are examples of popular companies in the metals and mining sector?

    Some of the most highly traded companies in the metals and mining sector are gold and silver mining stocks, which include ... Read Full Answer >>
  4. What seasonal trends exist in the metals and mining sector?

    There are strong seasonal tendencies in the metals and mining sector. The seasonality of the mining sector is primarily driven ... Read Full Answer >>
  5. What countries represent the largest portion of the global metals and mining sector ...

    Concerning future mining potential, many large untapped precious metal reserves exist. The countries with the greatest mining ... Read Full Answer >>
  6. What is the metals and mining sector?

    The metals and mining sector is the industry dedicated to the location and extraction of metal and mineral reserves around ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  2. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  3. Fundamental Analysis

    Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.
  4. Options & Futures

    Peak Oil: Problems And Possibilities

    Learn a little more about the "non" part of this nonrenewable resource.
  5. Active Trading

    Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  6. Chart Advisor

    Watch Out For Falling Copper Prices

    Commodity traders have been turning their attention toward copper prices over the past several weeks.
  7. Options & Futures

    How Long Can Gas Stay Cheap?

    The current gas prices means a lot for the economy and our pockets. Let's explore how long we can expect gas prices to be low, what affects gas prices, and what changes might be in store.
  8. Economics

    Ending The Limits On U.S. Crude Oil Exports

    As US storage capacity reaches its limit, industry participants and their lobby groups in Washington are calling for an end to the crude oil exports ban.
  9. Fundamental Analysis

    4 Oil Penny Stocks to Watch ... Just Be Patient

    If these four penny oil stocks survive the worst of times, they will present bargain basement prices with massive upside potential.
  10. Mutual Funds & ETFs

    Prospects of Gold ETFs GDX vs. GDXJ

    Eyeing gold? A comparison of the prospects of the Market Vectors Gold Miners and Market Vectors Junior Gold Miners ETFs.

You May Also Like

Hot Definitions
  1. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  2. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  3. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  4. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  5. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  6. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
Trading Center