Many countries have regulations regarding the amount of energy reserves they need to keep in storage in case of non supplies in times of emergency. PEI stores fuel inventories for the State of Israel and supplies refined products to road tankers in times of emergency.
The disclosure of an O&G company’s reserves should provide a better reflection of the underlying value of the company than its balance sheet. The balance sheet records the historical costs associated with drilling for, development of or acquisition of oil, and not the value of the oil and gas interests. The reserves disclosure, while not perfect, helps investors to fill this information gap. Thus by monitoring movements in the reserves report in terms of both volume and value, the investor should have a clearer understanding of both the current value and the historical performance of the management in adding value (see also reserves report). Some reserves are booked at project sanction – normally a low case number – then more reserves are usually booked during field life as more production data becomes available – these are known as reserves addition or reserves growth. Booking is done in accordance with the US SEC guidelines as well as the national guidelines in some countries. Most important, for booking to take place, the reserves must be economically recoverable using current technology and economic assumptions within a sanctioned project which has all the regulatory approvals in place
Positive and negative revisions, extensions, new reservoir discoveries in old fields, and new field discoveries that occurred during the report year
A measure of the resistance of a fuel to pre-ignition (“knock”) when burned in an internal combustion engine. The higher the number, the more anti-knock quality. Petrol’s Research Octane Number (RON) is measured under simple test conditions (see also octane rating)
Spain’s largest oil company. The firm also owns YPF, Argentina’s #1 oil company, and has operations in more than 30 countries
Energy sources that are indefinitely sustainable, that can be renewed/replenished in a short span of time, such as such as solar energy, geothermal heat, hydropower (water), biomass and wind. Less than 2% of the world’s energy is from renewable sources.
Remaining amount of gas to be sold as per the contract after offset of quantities sold to date. For instance in Yam Tethys’ contract with IEC they are contracted to always maintain 130% of the remaining TCQ due to IEC
If the drilling company has lost control of a well and it has blown out (uncontrolled release of pressure subsurface fluids) a relief well can be drilled from a nearby location to intersect the pressured reservoir horizon close to the original borehole and to allow the pumping of high density mud to kill the original blow-out.
Relief well is to counter the problem of the flow of oil or gas from a ruptured well which needs to be filled from the bottom. The relief well is drilled at an angle to intersect the damaged well just above the oil reservoir and is supposed to intercept the failed well where it ends, such as in the case of the BP well in the Gulf of Mexico at about 18,000 feet underground. Once the wells intersect, BP will inject massive amounts of heavy mud — much heavier than the oil — from the new well into the leaking well. The same pressure that is currently pushing out the oil will also force the mud up the well hole. Once there’s enough mud in the failed hole, the leak should stop.
An enforceable law or a rule of conduct that governs an industry’s business practices or operations, as determined by a government
