Category: Oil and Gas business

Price of gasoil used to be controlled by the MNI, but since the privatization and split of the oil refineries, the prices are no longer controlled as of January 2007. What the MNI site shows are the prices as they would have been if they were still controlled by the Ministry, or namely theoretic prices. To reach the gasoil price (מזוט) one needs to make an approximation in the following manner: extract CIF Lavera prices from the MNI website – which provides an approximation of the ex-refinery prices (average 2 business days + 5 days of Platts) – this price includes transportation to Israel which is about $20-$30 a ton – then convert it from $ to NIS according to the prevailing exchange rate for each month if price needed in shekels, add excise tax see again on MNI website excise tax for gasoil (about 14 NIS/ton) (do the PA pay excise tax?), make an approximation of the delivery / transportation tariff and add VAT (was changed several times during the period).

The United States Geologic Survey estimates Greenland’s offshore reserves could hold 50 billion barrels of oil and gas, or nearly one-third of the arctic total. The country, which voted for increased independence from Denmark last year, has a population of only 58,000 which makes for more than 860,000 barrels per person, if the USGS estimate is correct. However, no oil has been found yet, but many of the world’s biggest oil companies, including Exxon and Chevron, have acquired offshore leases and conducted geological studies in the past few years. They are attracted by high projected demand for oil in the coming decades and the retreat of arctic ice.

There are two primary types of natural gas marketing and trading: physical trading and financial trading. Physical natural gas marketing is the more basic type, which involves buying and selling the physical commodity. Financial trading, on the other hand, involves derivatives and sophisticated financial instruments in which the buyer and seller never take physical delivery of the natural gas

Established by an agreement amongst Arab countries which rely on the export of petroleum, the Organization of Arab Petroleum Exporting Countries (OAPEC) is a regional inter-governmental organization concerned with the development of the petroleum industry by fostering cooperation among its members.

A person drilling a wildcat well

American solar energy company that serves 20 million customers around the world, employs 13,000 workers and had an income of $11 billion in 2008. Sempra established an Israeli subsidiary called Negev Solar

Throughput component in the transmission tariff for consumers of the transmission system. Throughput tariff for shippers in the transmission system

Throughput fee means, in respect of a given period, the variable portion of the Transportation Fee which relates to the amount of Natural Gas, including any Fuel Gas, transported by INGL

This is the theoretic load factor for distribution shippers used for the calculation of the transportation fee, as set by the Israeli Natural Gas Council

Refers to a supply of gas which the seller is not permitted to interrupt. Covers both tariff supplies and firm contract supplies.

It is gas sold on a continuous basis and generally on long term contracts.

A firm contract provides power plant operators with an agreed-upon capacity for the producer or pipeline to supply natural gas, establishing a high priority for fuel requested by the power plant. The supply or delivery of natural gas cannot be curtailed under a firm contract except under unforeseeable circumstances.

In contrast, interruptible contracts (also called nonfirm contracts) are lower-priority fuel supply and transportation arrangements. Under these contracts, the flow of natural gas to a power plant may be stopped or curtailed if firm contract holders use the available capacity or if other interruptible customers outbid the power plant. These contracts are generally set up for short periods, often for next-day delivery. Interruptible contracts are less expensive than firm contracts, reflecting the higher risk of disrupted fuel receipts.

Unrefined oil directly from the reservoir.