Wellhead Production
Wellhead production is all oil which exits the ground (wellhead). When the crude oil has
been brought to the surface, it requires further treatment so that it can be sent to
refineries for processing. The oil produced at the well-head varies considerably from field
to field, due not only to the physical characteristics, but also to the amount of gas and
water which it contains. Before the oil can be sold, the remaining gas, water and other
impurities need to be removed. Once this is done, the oil is stored at the terminal before
transport to refineries. It is at this point that the produced oil becomes marketable
(production)....