05.07.2009

Prices of natural gas that move up and down in a volatile manner due to a host of influences, many of which tend to be dictated by supply, demand and climate changes. Just as an example, when an earthquake in 2007 forced a Japanese nuclear plant to close, utilities there ramped up natural gas use and prices soared in Japan, which in turn drove up prices in Europe. The global scramble for scarce LNG then worsened as a drought hit Spain towards the end of the same year, cutting Spain’s ability to use hydroelectric power. Spain normally leans on Algeria and Egypt for LNG imports, but in February 2008 those countries were busy shipping to Japan where prices were twice as high as in Spain. Spain then turned to Trinidad for imports. This meant less gas for the closer – but lower priced – US market, which in the past has taken most of Trinidad’s output. Trinidad’s shipments to the US through the first two months of the 2008 were down 31%.

Natural gas vehicles are either fueled exclusively with CNG or LNG (dedicated NGVs) or are capable of natural gas and gasoline fueling (bi-fuel NGVs). Natural gas can be used in the form of compressed natural gas (CNG) or liquefied natural gas (LNG) to fuel cars and trucks.

Dedicated natural gas vehicles (NGVs) are designed to run only on natural gas; bi-fuel NGVs have two separate fueling systems that enable the vehicle to use either natural gas or a conventional fuel (gasoline or diesel). In general, dedicated NGVs demonstrate better performance and have lower emissions than bi-fuel vehicles because their engines are optimized to run on natural gas. In addition, the vehicle does not have to carry two types of fuel, thereby increasing cargo capacity and reducing weight.

Compared with vehicles fueled with conventional diesel and gasoline, Natural gas vehicles burn less CO2, less NOX and less particulates.

The driving range of NGVs generally is less than that of comparable gasoline and diesel fueled vehicles because of the lower energy content of natural gas.

Natural Gas Regulator within the Ministry of National Infrastructures. The Natural Gas Authority was established in accordance with the Natural Gas Sector Law, 2002. The Natural Gas Authority is the regulatory body of the industry. The tasks of the authority are as follows: (1) Supervision of license holders, (2) Approval of engineering specifications for the purpose of awarding building permits, (3) Approval of tariffs, (4) Coordination of the staff work in the Ministry of National Infrastructures regarding natural gas, (5) Providing entry permits to land for license holders, (6) Publication of tenders and preparation of licenses, (7) Formulation of a transportation agreement for all consumers, (8) Setting up arrangements and determination of fees for connection of consumers to the transportation system > >

An interest that receives a portion of the net proceeds from a well, typically after all costs have been paid

This phrase signifies that high gas prices always leads to more production which swings the price back and vice versa so that prices often swing back and forth like a pendulum over a number of years. Higher output alone does not explain the price drop, but rather the combination with the economic downturn that explains the plunge

To put together, connect parts or otherwise make ready for use. Term especially used for the installation of a blowout preventer

The SEC prescribed a ratio for the barrel of oil equivalent (BOE) for natural gas of six thousand cubic feet (Mcf) per barrel of crude oil (Bbl). The 6:1 standard is based on thermal equivalence or gross heating values.To convert a thousand cubic feet (Mcf) of natural gas to barrels of oil equivalent (boe), divide by 6. For example, 600 Mcf = 100 Bbl.

The sum of the fractional working interest owned in gross acres or gross wells.

Joint ventures in an oil and gas production project look at the number of wells in terms of gross wells and net wells. A net well is deemed to exist when the sum of fractional ownership working interests in gross wells equals one. The number of net wells is the sum of the fractional working interests owned in gross wells expressed as whole numbers and fractions thereof