Category: Oil and Gas business

Transportation fee means the sum of the Capacity Fee and the Throughput Fee for a given period to be paid by the Shipper for the transportation of Natural Gas in the transmission system.

The natural gas transmission tariff is composed of: (1) a capacity tariff of 0.7527 NIS per hour per mmbtu multiplied by 730 hours a month, based on a dollar exchange rate of 4.225 NIS per $; and (2) an actual flow tariff of 0.1250 NIS per per hour per mmbtu, based on a dollar exchange rate of 4.225 NIS per dollar.

The tariff will be updated as follows: 1/3 of the tariff will be updated based on the consumer price index on the day of the sending of the bill compared to the base rate. The base rate is that of November 2006 which was 102.9 (base rate 100 = 2002) and 2/3 based on the dollar rate as per the day the bill is sent and based on a dollar rate of 4.225 NIS per $1The tariff does not include VAT. 90% of the tariff is from the throughput component and only 10% is from the actual flow of gas.

A subsurface oil accumulation. An oil field can consist of one or more oil pools

The first oil embargo began on June 6 1967 as a result of the Six Day War. A number of Middle Eastern countries decided to limit their oil shipments to the West, but these were soon replaced by others such as Iran and Venezuela that jumped on the opportunity to increase their supplies. During the 1973 Yom Kippur War the Arab Nations declared an oil embargo. This caused a severe price increase. The price of a barrel of oil increased from $3 on the eve of the war to $5 within a year and then increased to $12 and eventually to $30 by 1980. In 1973 Israel was willing to pay $17 a barrel as long as supplies continued to flow. President Nixon’s refusal to stop supplying Israel with arms and Holland’s support of Israel led to a total embargo by OPEC to these two countries.

Companies that provide a broad array of technologies and services to the oil and gas exploration and production sector, generally to upstream oil and gas customers worldwide such as Baker Hughes, Halliburton, Schlumberger, Transocean, WesternGeco, Wood Group, Worleyparsons and others. The services firms – a broad category that includes companies that drill wells, provide equipment and shoot the seismic surveys.

In the oil sector, there are large oil companies operating known as the majors, independent companies known as IOC and state oil companies known as NOC

The term “majors” on its own is used to denote the large global oil and gas companies. Supermajors is used to denote the largest of them. The majors include ENI, while some of the supermajors include Aramco, NIOC, ExxonMobil, Gazprom, BP, Royal Dutch Shell, Chevron, ConocoPhillips, Total and others.

Smaller companies are referred to as midcaps, juniors, small oilcos.

Structural traps for oil or gas include anticlines, fault, salt or stratigraphic traps where petroleum accumulates due to changes of rock character rather than faulting or folding of the rock. For instance if oil migrates from sandstone, it will flow along this rock layer until it hits for instance a low-porosity shale and a stratigraphic trap is formed