05.07.2009

Perhaps the simplest to understand and most widely used technical indicator is a moving average, which smoothes past data to illustrate existing trends or situations where a trend may be ready to begin or is about to reverse. A moving average helps you spot market direction over time rather than being caught up in short-term erratic market fluctuations. There are three main types of moving averages: (1) Simple. Each price point over the specified period of the moving average is given an equal weight. You just add the prices and divide by the number of prices to get an average. As each new price becomes available, the oldest price is dropped from the calculation. (2) Weighted. More weight is given to the latest price, which is regarded as more important than older prices. If you used a three-day weighted moving average, for example, the latest price might be multiplied by 3, yesterday’s price by 2 and the oldest price three days ago by 1. The sum of these figures is divided by the sum of the weighting factors – 6 in this example. This makes the moving average more responsive to current price changes. (3) Exponential. An exponential moving average is another form of a weighted moving average that gives more importance to the most recent prices. Instead of dropping off the oldest prices in the calculation, however, all past prices are factored into the current average. The current EMA is calculated by subtracting yesterday’s EMA from today’s price and then adding this result to yesterday’s EMA to get today’s EMA. An EMA generally produces a smoother line than other forms of moving averages, which can be an important factor in choppy market conditions. Market participants use moving averages of closing prices over different periods to predict key levels of resistance and support for oil prices.

There are a number of different types of moveable offshore platforms: drilling barges, jackup rigs, submersible rigs, semisubmersible rigs, drillships, offshore drilling and production platforms, fixed platforms, compliance towers, Seastar Platforms, floating production systems, tension leg platforms, subsea systems, spar platforms

A measure of the resistance of a fuel to pre-ignition (“knock”) when burned in an internal combustion engine. The higher the number, the more anti-knock quality. Petrol’s Motor Octane Number (MON) is measured under tougher test conditions and at higher engine speed and temperature (see also octane rating)

A moratorium is a delay, a period during which certain proceedings or obligations are suspended. In April 2005 Qatar announced a moratorium on new gas projects in order to ensure optimal reservoir management and, therefore, the productive life of its North Field gas reservoir. This was only expected to last until 2008, but Doha seems reluctant to add to the 25bn cf/d it is already committed to producing, at least until 2012. North Field gas-supply commitments amount to 77m tons a year (t/y) of liquefied natural gas (LNG), most of which has already been contracted

In 1981 the US congress adopted a moratorium against drilling on the US outer continental shelf covering 5 km to 320 km offshore. The US EIA estimates that 18 billion barrels of oil are in the area covered by the moratorium which could be enough to match current US production for 10 years. However, a 2007 analysis by the agency concluded that opening up drilling in the moratorium area would not have a significant impact on domestic crude oil and natural gas production or prices before 2030. The primary concern about offshore drilling has been that unsightly oil rigs would damage tourism or that spills would threaten the environment. In July 2008 President Bush decided to remove the moratorium and permit drilling offshore

Process of cutting away material through rotary movement from equipment located in the borehole

Process that uses an additional riser in FCC units (see FCC) to increase production of diesel and propylene. Changing market conditions are putting less demand for gasoline and greater demand for diesel and propylene so that under the MILOS system refiners can run their FCC units under different modes. In the propylene mode, propylene production can double compared with a base-case FCC unit while maintaining traditional diesel yields and quality. In diesel mode, diesel production can increase up to 20% with a seven point rise in cetane number and increased propylene production. The FCC unit can run anywhere between these modes or revert to normal FCC operation by changing operating parameters.