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Lost circulation is uncontrolled flow and loss of whole mud or cement slurry to a
subsurface formations as shown in figure. Lost circulation is one of the most common and
troublesome drilling problems in the oil and gas industry. It has been a drawback to drilling,
completions and work over operations. Sometimes it is called “Loss Returns”.
Other hole problems such as wellbore instability, stuck pipe and even blowouts have
been the result of lost circulation. Lost circulation has historically been one of the primary
contributors to high mud costs. Estimates of direct and indirect costs of lost circulation
problems in the drilling industry worldwide run into hundreds of millions of US dollars
annually. It has negative impacts on well economics.
Induced Fractures
If lost returns occur in an area where offset wells have not experienced lost circulation,
the problem is likely the result of fracturing that is induced during well operations, rather than
the result of a natural fracture network.
Most of the predominant factors that caused induced fractures are as follows. They are
1. Drilling Fluid such as weight, density and ECD
2. Well architecture like casing setting point and cementing program
3. Mechanical Failures like leaks in shallow casing string
Severity
The severity of the problem can be expressed in terms of mud lost and static fluid level drop.
Losses can be classified into
1. Seepage Loss (less than 10 bbl.)
2. Partial Loss (more than 10 bbl.)
3. Severe Loss (less than 200 bl.)
4. Complete Loss (No returns)