03.08.2009

There is what is known as the horns of the classic dilemma all developing world oil and gas producers eventually face. Namely, the delicate balance of how to determine how best to satisfy domestic energy demand whilst still leaving sufficient oil and gas left over for export. This is a circle few hydrocarbon producers have managed to square, as it involves juggling a number of balls. As a country’s national revenue rises from the sale of oil and gas, the domestic demand for energy rises as its wealthier citizens demand more cars, electrical consumer goods, etc. However, given that national oil and gas resources are expensive to develop it is inevitable that tension between an increasingly energy hungry population and the state’s need to earn greater amounts of foreign exchange will rise until a tipping point is reached. Indonesia for instance reached the tipping point for oil leading it to leave OPEC in 2008 on the grounds that it was no longer a net exporter. Analysts believe that it could reach a similar point for gas as the government decides to sacrifice LNG exports in favor or satisfying its rising domestic market.

A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one

Crude oil washing is a system whereby oil tanks on a tanker are cleaned out between voyages not with water, but with crude oil – the cargo itself.  The solvent action of the crude oil makes the cleaning process far more effective than when water is used. There is usually a final water rinse but the amount of water involved is very low. The system helps prevent pollution of the seas from operational measures. COW is mandatory on new tankers under the International Convention for the Prevention of Pollution by Ships

Under the Freedom of Information Act (FOIA) any person has the right to request public access to federal agency records or information. The agency must release the records upon receiving a written request unless the records fall within the nine exemptions and three exclusions outlined in the Act. Members of the public may obtain nonpublic or privileged information by submitting a Freedom of Information Act (FOIA) request. FERC is protecting energy facilities by restricting public access to Critical Energy Infrastructure Information (CEII). CEII is information concerning proposed or existing critical infrastructure (physical or virtual) information. CEII is specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure (physical or virtual) that: (1) Relates details about the production, generation, transmission, or distribution of energy; (2) Could be useful to a person planning an attack on critical infrastructure; (3) Is exempt from mandatory disclosure under the Freedom of Information Act; and (4) Gives strategic information beyond the location of the critical infrastructure

Term referring to the number of units (degrees) that the average outdoor temperature falls below or exceeds a base value (usually 65° F) in a given period of time. Each degree that the mean daily temperature is above the base value is called a cooling degree day (CDD) unit. Each degree that the mean daily temperature is below the base value is called a heating degree-day (HDD) unit. The monthly CDD & HDD values are simply the sum of the individual CDD and HDD units for the days in the month. Degree-days are reasonably good indices of the heating and cooling requirements of buildings.

Using coal seam methane for LNG is a new development. Until recently this did not work as the gas does not contain the higher value liquids (LPG and condensates) that can offset the high capital cost of an LNG development. When LNG prices rose however, the equation started to change and it became economic to convert LNG from CSG, such as SHELL’S planned coal seam gas to liquefied natural gas project in Gladstone

Classification of coal based on volatile matter and cooking power of clean material. Coal is readily combustible rock containing more than 50% by weight of carbonaceous material formed from compaction and indurations of variously altered plant remains similar to those of peat. After a considerable amount of time, heat and burial pressure, it is metamorphosed from peat to lignite. Lignite is considered to be immature coat at this stage of development because it is still somewhat light in color and it remains soft. Lignite increases in maturity by becoming darker and harder and is then classified as sub-bituminous coal. After a continuous process of burial and alteration, chemical and physical changes occur until the coal is classified as bituminous – dark and hard coal. Bituminous coal ignites easily and burns long with a relatively long flame. If improperly fired, bituminous coal is characterized with excess smoke and soot. Anthracite coal is the last classification, the ultimate maturation. Anthracite coal is very hard and shiny

The British Gas of old (pre 1997) has evolved into three entirely separate public quoted companies. (1) Centrica that sells gas to millions of households in the UK trading under the name British Gas Trading Ltd. It retains rights to the British Gas name and trademarks in the UK and has added electricity sales, credit cards and motor organizations (AA) to its list of activities (http://www.centrica.co.uk/); (2) Lattice Group which operated the national pipeline systems and local gas mains to the meter through which the gas is delivered and then became part of National Grid Transco (http://www.nationalgrid.com). National Grid is now an international electricity and gas company that delivers gas and electricity to many millions of people across Great Britain and northeastern US; (3) The BG group, which is an international oil and gas exploration and production business linked with gas distribution and power generation (http://www.bg-group.com/home)

A system that uses mechanical devices and an external energy source in addition to solar energy, to collect, store, and distribute thermal (heat) energy.

Ammonium diuranate, the penultimate uranium compound in U3O8 production, but the form in which mine product was sold until about 1970