Premium Essay

Upstream Oil and Gas

In: Business and Management

Submitted By sangee
Words 1093
Pages 5
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 procedure is co-ordinated by Ghana National Petroleum Corporation (GNPC) which has packaged Ghana’s upstream oil potential into blocks. Interested investors have to apply the Minister, who then refers the application to the GNPC, for evaluation and due diligence. A report is then issued which leads to negotiations and then a draft of petroleum agreement is then sent for the approval of…...

Similar Documents

Premium Essay

Oil N Gas

...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...

Words: 1409 - Pages: 6

Premium Essay

Oil and Gas

...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......

Words: 549 - Pages: 3

Premium Essay

Kumarr

...Industry Analysis On Oil and Gas Oil and Gas is one of the oldest industries in the world. Oil & Gas industry, also called Energy industry is sub divided into multiple segments- upstream, where crude oil is extracted from oil reservoirs (could be on land or in sea), midstream (it include the transportation of crude oil to refineries) and downstream (refining the crude oil to manufacture for consumers petroleum products like petrol, diesel, aviation fuel etc. India is the fifth largest energy consumer in the world with primary commercial energy consumption in 2004 was 375.8 Million Metric Tones of Equivalent(MMTOE) (survey 2005). In 2004, the consumption of oil and gas formed a major percentage in the world energy consumption basket. In India, however, coal still dominates the major source of energy. Indian oil and gas industry has emerged as significant contributor in growth of Indian economy. After establishment of New Exploration Licensing Policy (NELP) in 1997 efforts were made to strengthen the industry which include acquisition of oil and gas assets in India and abroad, identifying new oil and gas fields, improving techniques to enhanced oil recovery. Despite of several efforts made by Indian government, India has not made any major breakthroughs in the field of oil and natural gas that has hold a place of key importance in India’s economy. The prospects of Indian oil industry are for more exciting than any other, which India......

Words: 805 - Pages: 4

Premium Essay

Shell and Their Impact on Life Cycle Assessmnt

...10 References 11 Introduction The major accumulations of “oil were found in the 19th Century, fossil fuel seemed to” propose an unlimited foundation of drive to motivate expansion. Drilling, extracting severe and long-lasting risks, fires and doddles, work-related wound and illness, can prime to lasting damage to vegetables and bodily societies. (Andrew Inkpen & Michael H. Moffett, 2011) This report will discuss Shell Upstream and downstream activities with the LCA model and give critical analysis of what they need to show concern of environmental management and sustainability issues. Finally, give conclude by recommending how should shell lessons their impacts in the future. “Life Cycle Assessment Life Cycle Assessment (LCA) is a procedure used for measuring the possible ecological features and possible features linked with a manufactured goods (or” facility). - “ISO 14040.2 Draft: Life Cycle Assessment - Principles and Guidelines Life Cycle Diagram Findings and” Analysis Shell Upstream Activities with the LCA Model The Upstream department of Shell business includes developments, probing, recapture of unrefined oil and its production. Here discovery or unrefined oil exploration takes place and it includes the rigorous and wide labours to establishing the genuine dwellings where unprocessed oil is found. This can be compared to the raw materials,......

Words: 2244 - Pages: 9

Free Essay

Business

...Marathon Oil Corporation is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing, and transportation (Marathon Oil Corporation, 2009). The key to optimizing production and resource development is quick and accurate description of oil and gas reservoirs (Marathon Oil Corporation, 2009). For crude oil to be processed into gasoline, diesel fuel, and other petroleum products, it takes about four to eight days (Marathon Petroleum Company, 2009). The benefits of these reservoirs are higher success rates in discovery, drilling, and production activities (Marathon Oil Corporation, 2009). Also, the expertise of Marathon in reservoir characterization begins with seismic imaging, but it emphasizes integration of all geoscience, petrophysical, and engineering data into fully integrated solutions (Marathon Oil Corporation, 2009). Finally, the technology strategy of Marathon is focused on providing technical services that maximize the value of existing assets, develops and applies technology that enables access to new resources, and invests in emerging technologies that address challenges facing the energy industry (Marathon Oil Corporation, 2009). Discuss the relationship between the retail price of gasoline and the price of crude oil. The price a convenience store customer pays for a gallon of gas is dependent upon a number of factors including the cost of crude oil; the wholesale commodity...

Words: 1342 - Pages: 6

Premium Essay

Total vs Exxonmobil Financial Analysis

...Financial analysis TOTAL : * Business : Total sale many products: Gas, oil, Liquefied natural gas, electricity, coal, GPL, Petcoke. Total operate in all sectors of the oil industry, its activities are divided in 4 sectors: * Upstream sector: Exploration-Production, Gas &Powder. * Refining chemistry: Refining-chemistry, Trading-Shipping. * Marketing & Services: Marketing & Services, News energies. * Investissements: Investissements achieve, Planned investissements. Outcomes by sector: - Upstream Sector: Refining chemistry: - Marketing & Services: The benefit from the financial statements of TOTAL SA, parent company, amounted to EUR 6,031 million in fiscal 2013 against 6 520 million for fiscal 2012. * Customers: Marketing & Services includes all commercial and supply the Group's customers in petroleum products and related services activities. Marketing & Services business Total develops, supplies and markets petroleum products and related services. It covers: - The commercial activities of stations (for light and heavy vehicles); - General trade of fuels, biofuels, domestic and heavy fuel oils, lubricants, LPG, bitumen, aviation fuels, special fuels and additives & special fluids. Moreover, Total has a network of international distribution. The distribution of Total fuels are more than 15,000 service stations and serves approximately 3 million of customers per day. Products of the...

Words: 380 - Pages: 2

Premium Essay

Royal Dutch Shell

...Royal Dutch Shell Michael Swinson Dr. Brenda Harper, Professor BUS 508 Contemporary Business February 8, 2012 Shell Production and Operations Shell head office is located in Hague, Netherlands and the parent company, Royal Dutch Shell, is incorporated in England and Wales. Shell is engaged in oil and gas exploration and production, transportation and marketing of natural gas and electricity, and marketing and shipping of oil products and chemicals (www.itcilo.org). Shell’s strategic plan is to impose their status as a global power in the oil and gas industry. Providing a profitable shareholder return and meeting global demands for energy is a top priority. Shell’s core values are honesty, integrity, and respect for people. Global Corporation Types of Businesses “Shell is one of the world’s largest independent oil and gas companies in terms of market capitalization, operating cash flow and oil and gas production” (www.static.shell.com). The company consists of a global group of energy and petrochemicals companies. The number one goal of Shell are to engage resourcefully, reliably, and beneficially in oil, oil products, gas, chemical, and other selected businesses. Market Share For the past five years, Shell has been the industry leader in lubricant suppliers. During these years, Shell has gained 13% of the market volume in the United States and 23% in Mexico, the fastest growing North American market. Global demand for lubricants has grown around 6% since......

Words: 1205 - Pages: 5

Free Essay

Exxon Mobil

...December 2013 Executive Summary ExxonMobil is an American multinational oil and gas corporation that is headquartered in Irving, Texas. On November 30, 1999, Exxon and Mobil merged to become ExxonMobil. ExxonMobil is the largest publicly traded petroleum and petrochemical enterprise in the world (www.exxonmobil.com). The main activities of ExxonMobil are exploration, production, transportation and sale of crude oil and natural gas as well as the manufacture, transportation and sale of petroleum products (www.corporatewatch.org). This analysis will discuss the history of ExxonMobil. The analysis will identify the market structure and production decisions of the company. It will attempt to determine consumer demand. Through the findings of consumer demand the analysis will also attempt to determine the behavior and pricing strategies of ExxonMobil. It will also provide an explanation of management decisions. And, an explanation of management approaches to opportunities along with threats from macroeconomic expectations and implications. The analysis will also identify ExxonMobil’s competitors. Some common examples of competition are; Royal Dutch Shell, BP, and Chevron. The analysis will further discuss how the decisions of each individual company may affect similar companies in the industry.   HISTORY ExxonMobil is the biggest and most profitable of the Western “supermajor” oil companies (ExxonMobil: Oozing Success). In 1999, when Exxon and Mobil merged......

Words: 2985 - Pages: 12

Premium Essay

Statoil Supply Chain

...Statoil is one of the largest global integrated oil companies. There are three major areas in Statoil: Upstream, Midstream, & Downstream. Each major area has a strategic fit in Statoil. Upstream by far is the most important area of the business. Upstream is responsible for the exploration and production of oil & natural gas worldwide with an exceptionally strong portfolio in exploration and production. The role of Midstream is to apply commercial and functional excellence to enable the success of Upstream & Downstream assets. Statoil does this by providing safe and reliable midstream infrastructure and services, commercializing our equity gas resource base, and maximizing the value of our equity gas, crude oil, natural gas liquids, and refined products. Downstream manages the refining, sales and marketing of fuels, lubricants, additives and chemicals to retail, commercial and industrial customers through its Manufacturing, Products, Lubricants, and its StatCHEM joint venture with Phillips 66. As integrated oil company, I believe risk factors in the supply chain can impact both Upstream and Downstream. These risks can be either internal or external. Statoil supply chain consists of several different activities that transform natural resources into a refined product that is deviled to the end customer. Any disruptions in either Upstream or Downstream Supply Chain will results in reduced revenues, decreased market shares, inflated cost, and damaged business reputations. There......

Words: 434 - Pages: 2

Premium Essay

Qatar Oil& Gas

...www.businessmonitor.com Q4 2012 QataR oil & Gas RepoRt INCLUDES BMI'S FORECASTS issN 1748-4189 published by Business Monitor international ltd. QATAR OIL & GAS REPORT Q4 2012 INCLUDES 10-YEAR FORECASTS TO 2021 Part of BMI's Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: September 2012 Business Monitor International 85 Queen Victoria Street London EC4V 4AB UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2012 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions......

Words: 24143 - Pages: 97

Premium Essay

The World's Oil

...and World’s Oil Suppliers [Draft] February 21, 2014 History of Petroleum The world petroleum means literally rock oil. It was thought to be a completely different oil than that which comes from vegetable sources such as the olive, but modern research has traced its origin to the lipids (oil) of planktonic (free floating) plants and animals which live in brackish water such as blue-green algaes and foraminifera. The brackishness is essential because aerobic bacteria does not live in brackish water. Aerobic bacteria would decompose all of the organic matter. In brackish water the organic matter of the planktonic plants and animals sinks to the bottom and is incorporated in clay sediments which ultimately become sedimentary rocks. This is the origin of the oil shales (www.sjsu.edu). Today, petroleum or crude oil, is the most traded commodity in the world. It is the most important commodity because of its common use in everyday life. The cars we drive today heavily depend on crude oil refined products such as gasoline and motor oil. The plastic products we use daily are created using by-products of crude oil. Crude oil is essential to our daily life, therefore making it a very highly demanded commodity. Unfortunately, because of the world’s dependency on oil, an increase in oil prices has huge effects on everything. Food prices dramatically increase when there is a shift in oil prices. Transportation costs for transporting food increases with higher oil prices,......

Words: 1600 - Pages: 7

Premium Essay

Fuel Reforms Gather Pace

...JAN 2013 / Sector Update OIL & GAS SECTOR OIL & GAS Fuel reforms gather pace; ONGC best bet Government has provided a roadmap to diesel deregulation by authorizing OMCs (BPCL, HPCL, IOC) to take minor price hikes periodically. This implies diesel under-recoveries could vanish over next 2 years, which would be a huge trigger for Oil PSUs. Cooking fuel under-recoveries may also vanish once direct cash subsidy scheme is rolled out pan-India. Though this would remove all subsidy concerns and re-rate the entire space, we expect roadblocks due to political fallout of the ~20% diesel price hike. We expect 80% reduction in diesel under-recoveries over next two years. We upgrade ONGC, OIL to BUY with ~12% upside from CMP. BPCL (maintain BUY; 10% upside) is our preferred bet among OMCs due to its E&P exposure. Maintain HOLD on IOC and HPCL as they price in the development. PRICE PERFORMANCE 140 Sensex 130 120 BS E Oil & Gas Index 110 100 90 Jan-12 Jul-12 Jan-13 Source: Bloomberg Axis Capital Does government have the will to go ahead with 20% diesel hike over next two years? Diesel deregulation would imply ~20% hike in prices over a two-year period. Government may find it challenging to implement this given 14 state elections and general elections are due over next 18 months. Any roll-back or delay in implementation will indicate government lacks grit. Upstream stocks to benefit; ONGC top pick Upstream stocks (ONGC, OIL) would be direct......

Words: 2386 - Pages: 10

Premium Essay

Risk and Control Analysis-Exxonmobil

...whole corporation, including the upstream, downstream and chemical business. The report will cover some key aspects including: Background, mission, objectives and strategies of the company Risks including both industry and business risks that the company faces Specific area of risks and controls Background, mission, objectives and strategies ExxonMobil Corporation is world’s leading petroleum and petrochemical company which is formed in 1999 by the merger of two major oil companies Exxon and Mobil. As the world's largest company by revenue and one of the largest publicly traded companies by market capitalization in the world (Wikipedia, 2012), ExxonMobil has many world spread operating businesses, such as upstream which includes oil exploration, extraction, shipping and wholesale operations, downstream which includes marketing, refining, and retail operations and chemical division. In 2012, with rapid growth, ExxonMobil becomes number 1 in Forbes Global 2000 list. * Mission Exxon Mobil Corporation is committed to being the world's premier petroleum and petrochemical company (ExxonMobil, 2006). To accomplish this mission, not only the financial and operating objectives must be achieved, the company should also follow specific ethical standards to build a perfect relationship between the company and stockholders, including shareholders, customers, employees and communities. * Objectives and strategies For such a large oil and gas company, each business of......

Words: 2572 - Pages: 11

Premium Essay

Supply Chain in Oil and Gas

...Troy Rock Florida Institute of Technology Research Paper Supply Chain Process in the Oil and Gas Industry. MGT 5069 June 18, 2016 Introduction The definition of supply chain management, it is described as being the set of processes in a firm that are implemented to maximum customer satisfaction while operating at a lowest cost possible to achieve maximum profits. In the oil and gas industry supply-chain, the profitability of a firm is hinged upon its upstream suppliers and its downstream distributors as various forms of raw materials such as oil, fossil fuels, equipment, resources, finances, and information flow through from the top-tier parties all the way down to the customer. The customer is not only the average member of the public that is pumping fuel into their vehicle, but it can be airline companies, cruise-ships, plastic item manufacturers, independent gas stations, etc. Regardless of who is the end-user customer of the oil and gas firm, processes must be put in place to ensure that the supply chain surplus is maintained for all links in the supply chain, from the upstream drillers, down to the points of purchase for the consumer. Currently the price of oil has sharply dropped in the year 2015 and 2016 due to an overabundance of supply, and though a fear of scarcity was once a concern, that is not the case now. The main objective the oil and gas firms face are delivering the abundance of raw materials, going through the various production......

Words: 4204 - Pages: 17

Premium Essay

Agriculture

...The Industry Handbook: The Oil Services Industry By Investopedia Staff   A A A There is no doubt that the oil/energy industry is extremely large. According to the Department of Energy (DOE), fossil fuels (including coal, oil and natural gas) makes up more than 85% of the energy consumed in the U.S. as of 2008. Oil supplies 40% of U.S. energy needs. (Visit the U.S. Department of Energy's Energy Sources information page for more insight.) Before petroleum can be used, it is sent to a refinery where it is physically, thermally and chemically separated into fractions and then converted into finished products. About 90% of these products are fuels such as gasoline, aviation fuels, distillate and residual oil, liquefied petroleum gas (LPG), coke (not the refreshment) and kerosene. Refineries also produce non-fuel products, including petrochemicals, asphalt, road oil, lubricants, solvents and wax. Petrochemicals (ethylene, propylene, benzene and others) are shipped to chemical plants, where they are used to manufacture chemicals and plastics. (For more insight, read Oil And Gas Industry Primer.) There are two major sectors within the oil industry, upstream and downstream. For the purposes of this tutorial we will focus on upstream, which is the process of extracting the oil and refining it. Downstream is the commercial side of the business, such as gas stations or the delivery of oil for heat. Oil Drilling and Services Oil drilling and services is broken into two major areas:......

Words: 2461 - Pages: 10