in a particular region of Niger Delta, 18 rigs were employed in oil and gas exploration activities for a?

particular year. if the probability of oil discovery 0.3. find how much oil is likely to be discovred given that at least 100, 000 bars of oil will be strucked in any discovery and each rig is employed to drill six wells in the year. state all your assumptions

One Response to “in a particular region of Niger Delta, 18 rigs were employed in oil and gas exploration activities for a?”

  1. Drew H Says:

    6 * 6 * 0.3 * 100,000 = 1,080,000 bbls

    Each rig will drill 6 wells with a 0.3 or 30% chance of finding oil. So on average, each rig will strike 1.8 (6 * 0.3) productive wells, so in total 10.8 (1.8 * 6) wells will be found. Each productive well will produce 100,000 bbls. So 10.8 * 100,000 = 1,080,000 will most likely be found.