Unconventional oil is petroleum produced or extracted using techniques other than the conventional (oil well) method.  It consists of a wider variety of liquid sources including oil sands, shale oil, extra heavy oil, gas to liquids and other liquids.  Unconventional oil is a substitute for conventional oil, however it is typically harder and more expensive to produce than conventional oil.

Definitions:

Oil Sands (Tar Sands) – either loose sand or partially consolidated sandstone containing a naturally occurring mixture of sand, clay, and water,saturated with a dense and extremely viscous (thick and sticky) form of petroleum technically referred to as bitumen (or sometimes referred to as tar due to its similar appearance, odor and color).  It is most commonly found in parts of Canada.

Oil Shale – fine-grained sedimentary rock containing kerogen (a solid mixture of organic chemical compounds) from which shale oil, a liquid hydrocarbon, can be produced. The US holds major deposits of oil shale.

Extra Heavy Oil – a type of crude oil characterized by an asphalt-like, dense, thick and sticky nature (similar to molasses), and its asphaltene (very large molecules incorporating roughly 90 percent of the sulfur and metals in the oil) content. It contains impurities such as waxes and carbon residue that have to be removed before being refined. Extra Heavy Oil has an API gravity of less than 10°.

PRODUCTION phase is targeted at bringing the well fluids to the surface and preparing them for use in refinery or processing plant. All production and maintenance activities would be carried out to meet strict safety and environmental policies and procedures . The main activities in this phase are as follows:

• Regulate production and injection to meet approved plans for the quantity and quality of product.
• Monitor and record all information to manage the reservoir, wells and facilities.  This could lead to further reservoir development or modifications to the facilities
• Plan and schedule all production and maintenance activities to minimize production deferment and operating costs
• Carry out maintenance to safeguard the technical integrity of all wells and facilities and ensure their availability over the life of the field.

The exploration phase of the oil and gas life cycle closely intertwines with the next stage of the process which is APPRAISAL.  The objective of Appraisal is to obtain information about the reservoir to decide whether or not to proceed with development of the field. This stage is comprised of the following activities:

• Planning and execution of a data acquisition program of additional seismic,
• Reprocessing existing seismic data to obtain enhanced results and the drilling of
• Appraisal wells
• Evaluation of the results from the seismic and appraisal drilling activities
• Using the information from the seismic and drilling programs to update the computer reservoir simulation models
• Conduct initial conceptual field development planning and an environmental impact assessment (EIA) study of these conceptual plans