Category: Oil and Gas business

Import capacity is the maximum amount of natural gas that can be produced, transported, stored, distributed or utilized in any given period of time under design conditions

Production and export capacity of LNG has increased but not as fast as demand. In addition, there have many delays and cancellation of LNG projects mainly because of increasing construction costs, higher steel costs, difficulties to access sufficient sources of natural gas and geopolitical reasons

Refers to the density of crude oils and the products refined from them. Heavy crudes are more dense and have higher final boiling points than light crudes which have more asphalt. Products refined from heavy crudes include asphalt, lubricants, waxes, fuel oils. and light fuels (white products). Light crudes yield a higher proportion of light fuels, waxes, lubes, and small amounts of asphalt

A license must be obtained prior to drilling. A license confers upon the licensee: the right to explore for petroleum in the licensed area; the right to do exploration work outside the licensed area bearing on the petroleum prospects of the licensed area, to such extent and subject to such conditions as the Commissioner may prescribe; with respect to such right the licensee shall be in the position of a holder of a preliminary permit; the exclusive right to conduct test or development drilling in the licensed area and to produce petroleum there from. License must be obtained prior to drilling. The license is granted initially for a period of 3 years and can be extended for up to 4 more years.

When a governmental body offers exploration acreage for leasing by exploration and production companies, typically in return for a licensing fee and an obligation to perform a set program. This program can include acquisition of seismic data or drilling a well. Exploration licenses are initially of limited duration (about 3-5 years) after which there might be a requirement to return half or more of the licensed acreage to the state after the licensee has selected the area in which he wants to pursue his activities. If hydrocarbons are discovered, a separate production license or production-sharing agreement is usually drawn up before development can proceed

Unit that measures the flow of oil from a lease to a pipeline and determines the API gravity, temperature and BS&W

The actual amount of gas in a pipeline or distribution system. The placing daily gas imbalance (unsold gas) into a cumulative imbalance for sale at a later time. As gas is transported along a pipeline, its pressure falls due to friction in the pipe, and also as gas is taken off at various points. To compensate, compressor stations are built at strategic points, which lift the pressure back up. This helps transport larger amounts than would otherwise be possible. At times of low demand, this pressure can be raised, and then allowed to fall gradually during high demand, when the flow is greater. This is called “linepack storage”, and is utilized mainly within the higher pressure pipelines used to transmit gas throughout the country.

A 50-mile (80 km)section of 42-inch transmission line operating at about 1,000 pounds of pressure contains about 200 million cubic feet of gas

A section of continental shelf area in a particular national sector bounded by latitude and longitude lines, generally at one-degree intervals; a license block is usually subdivided into smaller areas