Until recently many natural gas purchase agreements had a price ceiling and floor so that although a certain indexation was set to the base price for long term contracts, the price could never go up or down beyond a certain level. Producers are far more reluctant today to agree to such terms
A string of tubing used to produce the well
System adapted in the UK, Norway, Canada, Australia. See probabilistic estimate
Facility for reducing the pressure and metering the gas transported by INGL and which is required to measure, test and verify the quantity and/or composition of the natural gas. PRMS stations are used for analyzing, filtering, measuring, heating and regulating the gas flow in the pipeline to the consumer’s facilities. Each PRMS station consists of a gas chromatograph, filters / separators, meters, heaters, regulating and safety valves, hot water system with auxiliary boilers, measuring and monitoring instruments, electrical power and a dedicated SCADA system.
According to the Natural Gas Authority and INGL in Israel the PRMS facility is used to link up the consumer to the transmission system, to measure the quantity of gas that is transmitted in the transmission system to the consumer’s meter and to adjust the pressure. The facility is located at the junction point between the transmission system and the distribution network or the consumers’ gas facility and will be established by the license holder (INGL) in the consumer’s yard or in proximity thereto and will be operated and maintained by the license holder (INGL)
Means the price at which oil products are sold to end users in countries such as the UK and Germany. The price of gas oil and fuel oil in such markets are popular escalators in gas pricing clauses, as from the buyers standpoint these are the products with which natural gas actually competes in the marketplace
Valve assembly at the top of a producing well used to control the flow rate of gas and fluids from the well
Probable reserves are those unproved reserves of hydrocarbons which analysis of geological and engineering data suggests are more likely than not to be recoverable. When probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves. Probable reserves may include: (1) reserves to be proved by normal drilling where sub-surface control is inadequate to classify these reserves as proved; (2) reserves in formations that appear to be productive based on well log characteristics, but lack definitive tests and are not analogous to producing and or proved reservoirs in the area; (3) incremental reserves attributable to infill drilling that could have been classified as proved if closer statutory spacing had been proved at the time of the estimate. (4) reserves attributable to improved recovery methods when a project is planned but not yet in operation and/or when rock/fluid and reservoir characteristics appear favorable for commercial application; (5) reserves in an area of the formation that appears to be separated from the proved area by faulting and the geological interpretation indicates the subject area is structurally higher than the proved area; (6) reserves attributable to a future workover, treatment, re-treatment, change of equipment or other mechanical procedures, where such procedure has not been proved successful in wells which exhibit similar behavior in analogous reservoirs and (7) incremental reserves in proved reservoirs where an alternative interpretation of performance or volumetric data indicates more reserves than can be classified as proven.
Process used in the refining of crude oil
Pressure: formation pressure increases with depth; pressure prediction plot is used to forecast pressure distribution along the well path; pore pressure is the pressure at which pore fluids leave the formation and influx into the well; fracture pressure is the pressure where the formation breaks down (the aim is to remain between these two former pressures); hydrostatic pressure is the pressure equivalent to the water column; over pressure is when the pressure is greater than that predicted for the depth (causes problems because of fluid influx); depleted zones are where the pressure is less than is should be for that depth (mainly caused by hydrocarbon production); pressure is usually managed using drilling mud
