Oil extraction & the Pointe Gourde principle: Mark Sefton & Oliver Radley-Gardner report
Oil is lighter than water, which is the key to how to extract it efficiently from an underground reservoir. The well is drilled as close as possible to the apex of the oil field. Then, as the oil is extracted, water is pumped in to replace it. The water sinks to the bottom of the reservoir, forcing the oil to rise to the top. That way, all of the oil will eventually work its way to the apex, and can be extracted. If the well cannot be drilled to the apex of the reservoir, then the extraction will be compromised and some of the oil will remain inaccessible.
Petroleum Production Act
It is this fact which, indirectly, gave rise to the litigation between Star Energy and Bocardo SA, which has now resulted in a decision from the Supreme Court, at [2010] UKSC 35, [2010] All ER (D) 333 (Jul). It concerns a high academic issue of what is meant by land ownership, and a thorny practical issue
