Casing (oil well) in the context of Completion (oil and gas wells)

The annulus of an oil well or water well is any void between any piping, tubing or casing and the piping, tubing, or casing immediately surrounding it. It is named after the corresponding geometric concept. The presence of an annulus gives the ability to circulate fluid in the well, provided that excess drill cuttings have not accumulated in the annulus, preventing fluid movement and possibly sticking the pipe in the borehole.

For a new well in the process of being drilled, this would be the void between the drill string and the formation being drilled. An easy way to visualise this would be to stand a straw (purple in diagram) straight up in the center of a glass of water. All of the water in between the straw and the sides of the glass would be the annulus (yellow area in diagram), with the straw itself representing the drill string and the sides of the glass representing the formation. While drilling, drilling fluid is pumped down the inside of the drill string and pushes the drill cuttings up the annulus to the surface, where the cuttings are removed from the drilling fluid (drilling mud) by the shale shakers.