Category: Oil and Gas business

US holds strategic reserves of oil and gas. The reserve achieved its originally mandated goal of 90 days of import protection in 1983 and reached 118 days’ supply in 1985 before Congress discontinued funding to buy oil and purchases were suspended in 1994. Current reserves as of beginning of 2008 stand at about 58 days of domestic demand. The amount currently being placed in the SPR of 70,000 b/d of royalty-in-kind oil is less than one tenth of one percent of the daily global demand of 85 million b/d. The U.S. Strategic Petroleum Reserve is the largest stockpile of government-owned emergency crude oil in the world. Established in the aftermath of the 1973-74 oil embargo, the SPR provides the President with a powerful response option should a disruption in commercial oil supplies threaten the U.S. economy. It also allows the United States to meet part of its International Energy Agency obligation to maintain emergency oil stocks, and it provides a national defense fuel reserve. The SPR has a total capacity of 727 million barrels

A type of reservoir capable of holding oil and gas, formed by a change in characteristics of the formation – loss of porosity and permeability, or a break in its continuity, which forms the trap or reservoir.

The production of a model of a reservoir or field by using stochastic methods to interpolate between data measurements (usually wells). The stochastic modeling technique manipulates a limited number of parameters to obtain a distribution range (P90, P50, P10).

An oil and gas development project is sub-commercial if the degree of commitment is not such that the accumulation is expected to be developed and placed on production within a reasonable time frame which is usually limited to around 5 years

If any piece of equipment is not able to undertake its proper task due to scheduling issues it charges stand-by time whilst it is waiting to commence work. For instance if a drilling rig cannot drill because of weather conditions or if a drilling operation has been performed, all tests have been conducted and the results of such tests furnished to the parties in a JOA agreement, stand by costs are incurred pending response to any party’s notice proposing an exclusive operation for deepening, testing, sidetracking, completing, plugging back, recompleting, reworking or other further operation in such well