...Natural gas is a fossil fuel formed when layers of buried plants, gases, and animals are exposed to intense heat and pressure over thousands of years. "Many observers have hailed natural gas as a solution to several energy problems facing the U.S. Utilizing the country's ample domestic supply of the resource, many have said, could greatly decrease U.S. dependence on foreign oil and possibly drive energy prices down." In order to access the natural gas in the U.S. shale formations, energy companies have employed a controversial procedure called hydraulic fracturing—also known as "hydrofracking" or simply "fracking." Hydrofracking is a technique that releases natural gas by pumping millions of gallons of water, laced with sand and chemicals, thousands of feet underground to blast open, or fracture, shale formations, freeing the gas. [See Today's Science: Natural Gas—Bridge to the Future?] This process has raised numerous questions and uncertainty in minds of many critics and supporters. Supporters of hydrofracking are arguing that there is no proven case of hydrofracking contaminating drinking water, and the process is perfectly safe. On the other hand, Critics of hydrofracking arguing that the chemicals used in fracking fluid are toxic and pose a danger to public health if they contaminate drinking water reserves or leak out of wells. Oil and gas companies are not being honest with the public about the dangers of hydrofracking, and the federal government should apply much stricter...
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...July, 2012 Oil and Gas Throughout the history of America, many controversial subjects are discussed. The oil and gas industry has become an important part of every person’s day. Whether it’s lighting, driving, or cooking, oil and gas has become a conglomerate in big business. Known as one of the most profitable industries in the market today, stocks fluctuate on a daily basis. The history, current leaders, and financial statistics of the industry all play factors in how the business operates. The history of oil and gas plays a factor in today’s society. Petroleum has always had great demand around the country. By the twentieth century, petroleum lead the world in the product for trade market. Countries such as America, Canada, and Russia began to establish oil fields in the early 1900’s and by mid century, these countries produced up to 3,500 tons of petroleum. The first modernized oil refinery was built in Poland. This oil refinery exported petroleum to counties in Europe and in northern Africa. Competition in eastern Europe for oil was getting competitive. The U.S. took over Europe as world leaders of producing oil in the 1920’s. Factories and refineries began popping up all over the country. The hotspots in the U.S. for oil and gas are Charles 2 Texas, Oklahoma, California, and Alaska. These states to this day lead the country with the most oil and gas produced and their economies are based around the booming economy of oil and gas. Offshore oil welling...
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...Turn risks and opportunities into results Exploring the top 10 risks and opportunities for global organizations Oil and gas sector Contents Introduction Executive summary Part 1: Risks Ernst & Young sector risk radar The top 10 risks 1. Access to reserves: political constraints and competition for proven reserves 2. Uncertain energy policy 3. Cost containment 4. Worsening fiscal terms 5. Health, safety and environmental risks 6. Human capital deficit 7. New operational challenges, including unfamiliar environments 8. Climate change concerns 9. Price volatility 10. Competition from new technologies 1 3 6 7 8 8 10 12 14 16 18 20 21 22 23 24 25 26 26 28 29 30 32 34 36 38 39 40 42 Part 2: Opportunities Ernst & Young opportunity ladder The top 10 opportunities 1. Frontier acreage 2. Unconventional sources 3. Conventional reserves in challenging areas 4. Rising emerging market demand 5. NOC-IOC partnerships 6. Investing in innovation and R&D 7. Alternative fuels, including second generation biofuels 8. Cross-sector strategic partnerships 9. Building regulatory confidence 10. Acquisitions or alliances to gain new capabilities Methodology Introduction While risk continues to dominate the business agenda, competition is also becoming just as dominant a feature. Market volatility, pricing pressure, variations in market performance, demanding stakeholders — all have contributed to a global economy that encourages competitive drive. And with that drive comes...
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...Value Chain of the Oil and Gas Industry Main Suppliers Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Oil (*** top producer) Natural Gas (*** top producer) OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula Preference Major Competitors IOC’s (Integrated Oil Companies)- companies that...
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...Introduction Oil and gas industry of Kazakhstan is the largest and most dynamic industry, which provides a stable increase in crude oil and natural gas. In the Kazakhstan sector of the Caspian Sea, there is continuing evaluation of public oil and gas fields with large reserves of hydrocarbons. Potential hydrocarbon of the Republic of Kazakhstan is estimated sufficiently significant in the total world reserves. Kazakhstan holds big hydrocarbon reserves, including potentially the second largest oil reserves in the world (US Energy Information Administration). According to official data from the Ministry of Oil and Gas of Republic of Kazakhstan, confirmed hydrocarbon reserves, both onshore and offshore, are estimated to be 4.8 billion tons or more than 35 billion barrels for 2012. Kazakhstan possesses unique geographical features that lead the country’s oil and gas cluster to be spread throughout the entire country, instead of one specific geographical area. Around 70% of Kazakhstan’s oil and gas reserves, both onshore and offshore, are concentrated in Western Kazakhstan around the city of Atyrau. Some oil reserves are also located in Southern Kazakhstan but the prospects for new discoveries there are not very promising (US-Kazakhstan Business Association). The majority of hydrocarbon reserves are located in the oil- and gas-rich regions of Kashagan, Tengiz and Karachaganak. The discovery of the Kashagan Field in 2000 is considered to be the largest oil field discovery...
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...You can’t go anywhere in this modern world without being affected by the oil industry. We depend on the oil industry to maintain or comfortable way of living. The oil business is all about finding, extracting, transporting, marketing and refining petroleum products. The main petroleum based product is gasoline. We use gasoline everyday in our vehicles. We count on gasoline to get us to our important destinations, because most of these destinations would be time-consuming and exhausting to reach on foot alone. Petroleum is pretty much vital in many of today’s industries. 40% of America’s energy consumption is oil and 30 billion barrels of oil are used every single year. In 2005, the United States of America consumed 21,930,000 barrels of oil in a single day. The production, distribution, refinement and retailing of petroleum make the petroleum industry the largest profit making industry in the world. In America we pay a gasoline tax for the gasoline we buy. This gasoline tax is collected by the Federal Highway Trust fund and is used to pay for road maintenance and other transportation projects or needs here in our country. Therefore, gasoline tax can be described as a “user’s fee”. You drive on the roads, which increases wear and tear on the roads, so you pay the tax on your gasoline in order to maintain the roads. There has been a tax on gasoline since 1919. The initial tax rate was only 1 cent on the gallon, but today, more then 50 years later, we pay around 18-19...
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...A fuzzy logic approach to urban land-use mapping Henning Sten Hansen National Environmental Research Institute, Ministry of Environment & Energy Frederiksborgvej 399, DK-4000, Roskilde, Denmark Phone : +45 46 30 18 07 Fax : +45 46 30 12 12 HSH@DMU.DK Abstract. The growth of cities represents huge problems for modern societies. Monitoring, analysing and modelling the urban dynamic call for detailed mapping of urban land-use. Traditionally, urban land-use mapping is based on orthophotos and satellite images, but deriving land-use from remote-sensing alone is not satisfactory. The Danish Building & Dwelling Register is a database containing detailed information like year of construction, use, area etc. Therefore, this database provides a useful foundation for urban land-use mapping. To be able to track urban land-use changes over time, we have chosen square cells (100m x 100m) as basic mapping units. Generally, land cover and land-use mapping are based on crisp classification, but in the current project we have applied a fuzzy modeling approach to land-use mapping. Fuzzy classification offers a better choice in urban land-use mapping, because it can indicate the primary, secondary etc. land-use simultaneously. This will offer more meaningful information for planners and a more detailed understanding of the land-use patterns. Based on these principles, a nation wide urban land-use database for the year 1997 is established. 1 Introduction Metropolitan areas all over the...
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...PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, 1st September, 2010 G.S.R. 720:- In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board hereby makes the following regulations, namely:1. Short title and commencement. (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Code of Practice for Quality of Service for City or Local Natural Gas Distribution Networks) Regulations, 2010. (2) These shall come into force on the date of their publication in the Official Gazette. 2. Definitions. (1) In these regulations, unless the context otherwise requires,(a) “Act” means the Petroleum and Natural Gas Regulatory Board Act, 2006; (b) “Board” means the Petroleum and Natural Gas Regulatory Board established under sub-section (1) of section 3 of the Act; (c) (d) “CGD network” means city or local natural gas distribution network “domestic consumer” means a consumer who is provided PNG connection for the purpose of cooking or for other own domestic use and not for commercial use; (e) “commercial consumer” means a consumer who is provided PNG connection for commercial purpose; (f) “industrial consumer” means an industrial establishment which is provided PNG connection within the authorized CGD network; (g) “CNG consumer” means consumer who is supplied CNG for use as fuel for vehicle through CNG station. (2) All other words...
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...IRANIAN OIL AND GAS INDUSTRY COMPETITIVENESS NAME: INSTITUTION: CHAPETR ONE: INTRODUCTION 1.0 Introduction This study’s rationale is based on the deductions from the available literature that there is a dire need to understand the Oil and gas industry competitiveness in Iran (Michael E. P. 1990). This study thus uses Porter’s model of competitive advantage of nations to analyze Iran’s oil and gas industry’s competitiveness in the global market. This study will also focus on the factors that affect the industry’s competitiveness. In the past decade, there has been a progressive increase in world oil demand due to increase in the global economic growth (Hooman 2000), (Narsi, 2001). With the global demand for energy projected to rise in the future coupled with the exponential reduction in oil reserve discovery from the majority of non-OPEC (Organization of Petroleum Exporting Countries) countries, there is a significant demand for oil from OPEC countries, such as Iran. Moreover, unless there is a feasible alternative, the influence of Iran and other OPEC countries will be more prevalent. This, therefore, means that the energy sector in OPEC countries faces fierce competition (Fereidun 2016). Iran is the oldest oil-exporting country in the Persian Gulf region. With the continued discoveries of new oil fields, its current reserves have exceeded domestic consumption and exports. Being the founding member of the OPEC, Iran has also...
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...Oil and natural gas touch our lives in countless ways every day. Together, they supply more than 60 percent of our nation’s energy. They fuel our cars, heat our homes and cook our food. But did you know that oil and natural gas also help generate the electricity that powers our daily lives? Or that crude oil supplies the building blocks for everything from dent-resistant car fenders to soft drink bottles to camping equipment? Explore this section to learn more about oil and natural gas, how they are produced and how they become the products you count on. You'll also find useful tips on how to conserve energy and use oil and natural gas products in ways that protect you, your family and our environment. Wells to Consumer Interactive Diagram This interactive diagram that shows the journey of oil and natural gas from Exploration and Production to the final products that benefit consumers. Exploration and Production Access to oil and natural gas resources is critical to supplying the energy needs of American consumers, business and homeowners. Transporting Oil and Natural Gas Supply and demand are rarely concentrated in the same place. Transportation therefore is vital to ensuring the reliable and affordable flow of petroleum we all count on to fuel our cars, heat our homes and improve the quality of our lives. Fuels and Refining America's refiners are a strategic asset for the United States, and maintaining a viable domestic refining industry is critical to the nation's...
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...The oil, gas and petrochemicals industries are highly competitive. Within the oil and gas the competition is very strong. There are other countries that supply the fuel if there is a need for commerce, industry and the home. With the competitive industry so much pressure on the prices, affects oil products marketing and requires continuous management focus on reducing unit costs and improvements that are needed(Wikinvest, 2012). The implementation of group strategy requires continued technological advances and innovation including advances in exploration, production, refining, petrochemicals manufacturing technology and advances in technology related to energy usage (Wikinvest, 2012). At BP, the way that the company works could be the competitor’s worse enemy if they knew what technology BP uses. Oil, gas and product prices are a worldwide supply and demand. Just before oil price increases have resulted in increased cost inflation. Because of that, increased oil prices may not improve margin performance. In addition to the effect on revenues, margins and profitability from any fall in oil and natural gas prices, a long period of low prices. . If demand is elastic, it simply means that consumers will buy more oil when the price comes down. They will buy less when the price goes up. There are other reasons why consumers increase or decrease consumption, but price is the main driver of demand. Rapid material and change in oil, gas and product prices can impact strategic decisions...
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...Home Work – Oil & Gas Accounting Page 33 & 34 Question 5 • Economic interest in oil and gas: After an E&P company has identified an area with potential, the company will seek to acquire the right to explore, develop, and produce any minerals that might exist beneath the property, unless it already holds this right. This right, along with the right to simply share in proceeds from the sale of any minerals produced, is referred to as mineral interest or an economic interest. • Mineral rights U.S law assumes that for ownership purposes, the surface of a piece of property can be separated from minerals existing underneath the surface. When a piece of land is purchased, one may acquire ownership of the surface rights only, the mineral rights only, or both rights. • Mineral interest Is an economic interest or ownership of minerals-in-place, giving the owner the right to share of the minerals produced either in-kind or in the proceeds from the sale of the minerals. • Royalty interest This type of mineral interest is created by leasing. The royalty interest is retained by the owner of the mineral rights when that owner enters into lease agreement with another party. • Working interest This interest is created via leasing and is responsible for the exploration, development, and operation of a property. The working interest is responsible of paying all 100% of the cost. • Overriding royalty interest Is a nonworking interest...
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...The upstream petroleum (oil and gas) sector encompasses of exploration and appraisal, development and construction and production. For natural gas and liquefied natural gas (LNG), the definition of upstream includes processing and delivery to terminals or to the intakes of domestic gas transmission pipelines. If we analyze the upstream sector from the aspect of legal and regulatory aspect, the production of oil and gas in a country, brings conflicting issues that affects the interest of four major stakeholders. These are the government of the host state, the oil company, the communities hosting and works in the oil production process and the environment. To balance the conflicting interest of the above players, countries hosting oil production activities need to devise a requisite legal framework, for the efficient promotion and sound management of the petroleum production activities. The establishment of such rules and regulations gives major impact to the oil and gas industry. It can be stated that the rules and established basically causes burden especially to the oil company involved. We can analyze the burden and pressure caused through many aspects. One of them is rules regarding licensing authority and procedure. There is solid evidence that shows that the current regulatory framework in this matter imposes a significant burden on the upstream petroleum sector. Most of the process to obtain license is complex and consume a lot of time. For example, in Ghana, the licensing...
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...The North Sea: vital to the future of the oil and gas industry Contents 3 Foreword 14 Section seven: Forecasts and financials 4 Section one: A new dawn 16 Section eight: Interview with Robin Watson 5 Section two: Growth and investment 18 Section nine: Conclusion 8 Section three: Workforce 19 Section ten: Key takeaways 10 Section four: Foreign ownership 20 About the author 11 Section five: Unconventionals 12 Section six: The road ahead The survey which underpins this report was conducted by B2B International on behalf of Barclays. All charts, data and statistics featured in this report are the product of the results of this survey. Interviews were conducted with 80 oil and gas operators between May and July 2013. T: +44 (0)161 440 6000 b2binternational.com 2 of 21 Foreword The North Sea success story continues. Investment is at a 30-year high and exploration and production activity levels indicate supply for decades to come. Investment from UK and foreign companies alike, coupled with welcome government tax incentives, support this positive outlook. With global demand strong and substitutes so few, Barclays shares this optimism. The United Kingdom Continental Shelf (UKCS) remains a region rich in opportunities and ripe for investment, not least because of the high commodity price. In fact, investment in the North Sea has reached a 30-year high1 and plans are being drawn up to ensure exploration and production...
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...Oil and Gas Prices Darlene Dant COM 150 In August 2006 the American national average for a gallon of gas was $3.09. Gas prices hit an all time high in July 2008 with a national average of $4.12 per gallon. By December 2008 the national average for a gallon of gas was a mere $1.61 (GasBuddy, 2009). Due to the affect that supply and demand has in combination with state and federal taxes, America has seen significant fluctuations in gas prices. As people say, “What goes up must come down” and, in the oil and gas industry the opposite is also true, “What goes down must come up”. Fuel costs are affected by the world’s oil supply. The Organization of the Petroleum Exporting Countries (OPEC) consists of 12 members from various countries, who are the main suppliers of the world’s oil (OPEC, 2009). According to the Energy Information Administration (EIA [2009]), America gets the majority of its oil from five countries: Canada, Venezuela, Mexico, and Saudi Arabia. There are different grades, or qualities, of crude oil. Two of the most popular grades are: light-sweet crude oil (better grade) and heavy-sour crude oil (lesser grade). Depending on where the oil is coming from, it may be of a better, or lesser, grade compared to that of another country. The most desirable crude oil is light-sweet crude oil. While easily obtained in the past, light-sweet crude oil is becoming less available, causing an increase in price (Wagner, 2008). While light-sweet crude oil may have...
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