05.07.2009

This is the danger of political or financial instability in the host country caused by events such as insurrections, strikes, suspension of foreign exchange, creeping expropriation and outright nationalization. It also includes the risk that a government may be able to avoid its contractual obligations through sovereign immunity doctrines. Common mechanisms for minimizing political risk include: (a) requiring host country agreements and assurances that a project will not be interfered with; (b) obtaining legal opinions as to the applicable laws and the enforceability of contracts with government entities; (c) requiring political risk insurance to be obtained from bodies which provide such insurance (traditionally government agencies); (d) involving financiers from a number of different countries, national export credit agencies and multilateral lending institutions such as a development bank; and (e) establishing accounts in stable countries for the receipt of sale proceeds from purchasers

Increase in inventories, mild weather, weakening US oil demand, strengthening of the US dollar, etc can all contribute to a sharp decline in crude oil prices

Platts, a division of The McGraw-Hill Companies, is a leading global provider of energy and metals information. With nearly a century of business experience, Platts serves customers across more than 150 countries. From 14 offices worldwide, Platts serves the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets. Platts’ real time news, pricing, analytical services, and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions.

The world’s worse offshore disaster that took place in 1988 on an oil rig in the North Sea and which caused the death of 167 people

Machine for inspection pipe welds to detect welding defects in gas pipeline

Pigs are intelligent robotic devices that are propelled down pipelines to evaluate the interior of the pipe. Pigs can test pipe thickness, and roundness, check for signs of corrosion, detect minute leaks, and any other defect along the interior of the pipeline that may either impede the flow of gas, or pose a potential safety risk for the operation of the pipeline. Sending a pig down a pipeline is known as ‘pigging’ the pipeline

The quantity (volume) of oil and gas required to maintain a full pipeline. The static capacity of a pipeline is usually expressed as a volume per unit length (for example, bbl/ft). Nevertheless, the fluid volume passing through a pipeline in a specific time period will depend on initial pressure, flow characteristics, ground elevation, density and delivery pressure.

A vessel used to entrench pipelines beneath the seafloorThe Deep Blue is the world’s largest purpose-built ultra deepwater pipelay and subsea construction vessel. It can lay flowlines and umbilicals, and support developments in water depths ranging from 75m to 2,500m. It can carry out rigid pipelay (reeling) of up to 5,500t of 4in to 18in pipe or 4,000t of 4in to 26in rigid pipelay (J-Lay). Alternatively, it can lay up to 5,764t of 2in to 16in flexible pipe. Its maximum payload of 11,023t can consist of either two rigid reels (5,511t), flexible lines in two carousels (2,000t and 1,500t), eight portable 300t reels, 4,000t rigid pipe strings or 3,000t of subsea structures..

Pi-Gliloth was established in 1959 and is engaged in the distribution of various types of fuel. The company was jointly owned by three fuel-sector companies, Paz, Delek, and Sonol (which hold 50% of the company’s shares), and the State of Israel, that holds the remaining 50% after having received shares in the company from the state-owned firm, Petroleum and Energy Infrastructures Ltd. (PEI), in accordance with an agreed upon termination of PEI’s concession. In 2005 the Government decided to privatize Pi-Gliloth and thus Pi-Gliloth’s facilities have been sold to Delek in August 2007

Sending a pig down a pipeline is known as ‘pigging’ the pipeline.