The Reading power station situated in the north of Tel Aviv was established in 1938 by Pinhas Rutenberg. It is the third power station to be established in Israel. It currently has 2 x 214 MW turbines and consumes up to 90 thousand tons per hour of natural gas at maximum capacity
Utilization of energy by consumers in a manner best suited to the realization of economic objectives, taking into account social, political, financial, environmental and other constraints
Ratio was established in 1993 and has hitherto (2010) carried out 17 drillings at a total cost to itself of 100 million shekels. The chairman of the board is Yishayahu Shaike Landau.
Ratio is a TASE public traded L.P. which currently holds interest of 12.3% in the Med Yavne lease, 25% in the Sarit License, 10% of which they bought in 2010 from Lapidoth-Heletz for $160,000 + VAT (the rest is held by Lapidoth-Heletz 52.5% and Modiin Energy 22.5%), 15% in Rachel, Amit, Hanna, David and Eran licenses (the remainder is held by Delek, Avner and Noble) and a 100% in the Gal preliminary permit which was awarded to them in February 2010. The Gal permit is located 150 West of Netanya and spans 1.77 million duman. The new permit was granted to them until the 15th August 2011 during which period they will have to fulfill a number of milestones including buying existing 2D seismic survey and analyzing it, carrying out another 2D survey at a cost of $3.6 million and submitting a final report to the Petroleum Commissioner including an appraisal of a prospect they wish to carry forward for drilling.
At the end of 2009 Delek and Noble and Ratio carried out 3D surveys in their license called whale or Leviathan. The rights in the Leviathan license are held by Noble (39.66%), Delek Drilling and Avner (22.67% each) and Ratio (15%). The 3D also surveyed the entire five exploration sectors: Amit, Rachel, David, Hanna and Eran
Ratio used to hold 0.42% in Med Ashdod Lease and 10% in each of Asher Yam South, Asher Yam North and Zohar and were partners in the Aviv Licence which expired in January 2003. In addition to the 0.42% purchased interest in Med Ashdod, Isramco assigned to Ratio an additional 2.08% (out of 100%) from the participation in Nir-2 well drilling (plus an option for an additional 2.5%). Those rights were assigned with no past costs coverage, but it was agreed that should drilling be successful, Ratio will pay Isramco $125k for every 1% of rights in the drilling, which will be paid out of the JV profits on the gas sale.
This is an indication of an O&G company’s capacity to bring forward new development projects. The success of a company’s oil exploration and production program and its ability to generate future projects is measured by the rate at which the program adds to the company’s proven reserves
These phrases refer to the price ratio between natural gas and crude oil. Over the years, the ratio of oil to gas market prices has averaged about 9 since 1990, which is to say that the price per unit of oil is usually about 9 times more than the price per same unit of natural gas.
When crude oil is $100 a barrel this is equivalent to $17.2 an mmbtu, which is an important ball-point to compare the price of crude oil to that of natural gas. In the example given, natural gas trades at a 7-8 times discount to crude oil. Historically natural gas has traded at a significant discount to oil, but at the beginning of 2009 for instance it traded more on a parity, or close parity with oil. By August 2009 the price of natural gas had tumbled so much that oil cost 26 more than gas, the biggest gap since January 1992. Oil cost 8.4 times more than gas on average during the decade between 1999 and 2009.
Oil and gas prices have never moved in a lock step, one of the main reasons being that the former is part of a global market whilst natural gas is traded via pipeline on more localized markets. Tankers can move oil or refined products to anywhere from anywhere, and will do so if prices rise in one region relative to those in another. Growing demand for oil in Asia, as well as fears of instability in the Middle East have helped to raise oil prices. Although the market for LNG is growing, natural gas, has still limited worldwide transportation capacity.
Natural gas and crude oil prices have had a stable long-run relationship despite periods
when a large exogenous spike in either crude oil or natural gas prices may have produced
the appearance that these two prices had decoupled.
