Month: December 2009

The International Natural Gas Model (INGM) was developed to enhance the Energy Information Administration’s (EIA) long-term assessment of world natural gas markets. The INGM simulates the natural gas and LNG markets from production, through processing and transportation, to end-use

Nobody knows or can know how much oil exists under the earth’s surface or how much it will be possible to produce in the future. All numbers are, at best, informed estimates. Within the broad concept of oil reserves there are several key distinctions: ultimately recoverable resource (URR) is an estimate of the total amount of oil or gas that will ever be recovered and produced. Estimated Ultimate Recovery (EUR) is not a resource category as such, but a term which may be applied to an individual accumulation of any status/maturity (discovered or undiscovered). Estimated Ultimate Recovery is defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from an accumulation, plus those quantities already produced therefrom. It is a subjective estimate in the face of only partial information. Whilst some consider URR to be fixed by geology and the laws of physics, in practice estimates of URR continue to be increased as knowledge grows, technology advances and economics change. Economists often deny the validity of the concept of ultimately recoverable reserves as they consider that the recoverability of resources depends upon changing and unpredictable economics and evolving technologies. The ultimately recoverable resource is typically broken down into three main categories: cumulative production, discovered reserves and undiscovered resource. Cumulative production is an estimate of all of the oil produced up to a given date. Discovered reserves are an estimate of future cumulative production from known fields and are typically defined in terms of a probability distribution. Discovered reserves are typically broken down into proved, probable and possible reserves.

A nomination is (1) the notification by a shipper to a pipeline company of the amount of gas that it wishes to flow on their system on the date specified. The actual amount of gas that flows on the system may be different than the quantity nominated. (2) A request for a physical quantity of gas under a specific purchase, sales or transportation agreement or for all contracts at a specific point. (3) The process, by which a customer’s gas needs are defined, communicated, scheduled and monitored

The consumer will receive the following bill: payment to the shipper/marketer to include the price of his natural gas + the marketer’s fee (these fees are not supervised/regulated); payment to the transmission licensee according to the two phased tariff determined by the Natural Gas Authority; a one-time payment to link up his facility to the distribution network and distribution tariff based on the distribution licensee’s quote in the tender. The consumer will only pay for gas as per the amount his meter states he has consumed. Any digression between the distribution licensee’s meter at the entry point of his distribution region and the reading of all the consumers’ meter s in his region, will be covered (plus or minus) by the marketer pro-rata to the consumption of his consumers.