The physical, chemical or biological alteration of sediments into sedimentary rock at relatively low temperatures and pressures that can result in changes to the rock’s original mineralogy and texture and can result in the creation of some forms of porosity
Natural gas can also exist in Devonian shale deposits. Devonian shales are formed from the mud of shallow seas that existed about 350 million years ago (during the Devonian period of the Paleozoic era). These shales can contain natural gas, usually when two thick, black shale deposits ‘sandwich’ a thinner area of shale. Because of some of the properties of these shales, the extraction of natural gas from shale formations is more difficult (and thus expensive) than extraction of conventional natural gas. Most of the natural gas containing Devonian shale in the U.S. is located around the Appalachian Basin. Although estimates of the amount of natural gas contained in these shales are high, it is expected that only about 10 percent of the gas is recoverable. However, their potential as a natural gas supply is still very promising, given an adequate technological and economic environment. The EIA estimates that there are 55.42 Tcf of technically recoverable shale gas in the United States, representing just under 5 percent of total recoverable resources
Horizontal and directional drilling are other methods of increasing a well’s productivity while reducing the environmental footprint of an oil and gas operation. New technologies enable us to drill laterally or horizontally beneath the surface, as opposed to vertically, allowing for a wider range of possible well configurations. It is the intentional deviation of a wellbore from the path it would naturally take
Norwegian offshore classification for the oil and gas business that provides technical provisions and acceptance criteria for general use by the offshore industry with codes offered in the following areas: Qualification, Quality and Safety Methodology; Materials Technology; Structures; Systems; Special Facilities; Pipelines and Risers; Asset Operation; Marine Operations; Subsea Systems. And Wind Turbines.
Det Norske Veritas offshore standard DNV-OS-F101 which deals with standards for offshore pipelines also covers shore crossings
Desalination is a process that removes dissolved minerals (including but not limited to salt) from seawater, brackish water, or treated wastewater. A number of technologies have been developed for desalination, including reverse osmosis (RO), distillation, electrodialysis, and vacuum freezing. The main disadvantages of desalination is the lack of siting flexibility due to the need to set up stations on expensive and limited shore land and the high cost of energy (Approximately one third of the operational costs of a water desalination facility is the power consumption). Nevertheless, the amount of energy required to desalinate one cubic meter of sea water is less than 4 KwH, which is equivalent to the amount of energy required to move a car on average between 2-8 km. An average Israeli family would only increase its energy consumption by 3% if all the water it consumed was desalinated water. If a desalination facility is linked to a natural gas power station for the supply of energy then the natural gas which represents about 50-60% of the cost of the generation of the electricity thus becomes a critical element in the cost of the end product, namely the desalinated water.
A generic term that, in the energy field, may include options, futures, forwards, etc. Companies may use crude oil and natural gas derivative instruments to mitigate the effects of commodity price fluctuations. These derivative instruments though may expose the company to counterparty credit risk if the bank and/or financial institution that provides the instrument default
Depletion allowance as was approved in Israel before Sheshinski is an unusual fiscal feature in today’s world. It is the same rate (27.5%) as the old depletion allowance in the US that originated in 1926 and lasting into the 1980s. with this kind of allowance the producer has the option of choosing either cost depletion using the unit of production formula or percentage depletion (27.5% of gross revenues less royalty)
A term for either (1) a periodic assignment to expense of recorded amounts or (2) an allowable income tax deduction that is related to the exhaustion of mineral reserves. Depletion is included as one of the elements of amortization. Under certain conditions governments allow owners of oil wells to take a tax savings on their initial investment for selling their oil.
Deduction from gross income due to depletion of the field. The theory behind the depletion allowance is that an incentive is required in order to encourage investment in a high risk industry: when the field starts to be depleted, the oil and gas company needs to start re-investing in exploration to find new reserves. Depletion allowances were only granted by a restricted number of governments such as the US, Canada, Pakistan and Barbardos (and also Israel). In the Philippines there is a similar allowance called FPIA known as Philippine participation incentive allowance.
Depletion is similar to depreciation in that it is a deduction made to recover capital invested in the oil and gas as it is removed from the ground and sold–being depleted. Just as real estate is assumed to depreciate (drop in value) as it grows older, the oil and gas is assumed to be depleted and drop in value as it is used up.
One of two types of depletion allowance may be available to an investor. Cost depletion is always available, while percentage depletion is available only for certain types of products and certain producers and retailers. Where both types are available, the investor is required to compute the depletion allowance which would be provided by each, and must deduct whichever produces the greater amount.
Under the cost depletion method, the amount of the allowance is determined by a formula based on actual costs and units (such as barrels of oil). Cost of Units divided by Estimated Number of Units to be Recovered, times Units Sold in Period.
While cost depletion is based in part on the investor’s actual costs, percentage depletion has no direct relationship to the individual investor’s costs in the initial calculation. Instead, it is a percentage of the property’s gross income less royalties and rents. The percentage is determined by law.
In the US, Percentage depletion is limited to amounts received for actual production. This excludes lease bonuses, advance royalties, or any amounts unrelated to actual production. The deduction, however, is limited to no more than 50% of the taxable income the individual investor receives from the investment.
Another limitation also applies to the percentage depletion. When determining whether to use cost or percentage depletion, the investor must determine whether using the percentage depletion allowance will result in a deduction that is more than 65% of total personal income for the year (not just income from the investment). If it does exceed 65%, but if the investor still must use percentage depletion (because it is greater than cost depletion), the excess over the 65% limit may be carried forward to any future years where it may be used as a deduction under the limitations specified.
The electric grid delivers electricity from points of generation to consumers, and the electricity delivery network functions via two primary systems: the transmission system and the distribution system. The transmission system delivers electricity from power plants to distribution substations, while the distribution system delivers electricity from distribution substations to consumers. The grid also encompasses myriads of local area networks that use distributed energy resources to serve local loads and/or to meet specific application requirements for remote power, village or district power, premium power, and critical loads protection. The concept of the smart grid technology calls for the construction of a 21st century digital technology electric system that connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere in a manner that will save energy reduce costs and increase reliability and transparency. This can be achieved through a smart grid, which would integrate advanced functions into a nation’s electric grid to enhance reliability, efficiency, and security, and would also contribute to the climate change strategic goal of reducing carbon emissions. These advancements will be achieved by modernizing the electric grid with information-age technologies, such as microprocessors, communications, advanced computing, and information technologies.
US Department of Energy. The Department of Energy’s overarching mission is to advance the national, economic, and energy security of the United States; to promote scientific and technological innovation in support of that mission; and to ensure the environmental cleanup of the national nuclear weapons complex.
The extra time required to load or unload a vessel, as compared with that specified in the contract. The term refers only to those situations in which the charterer or shipper, rather than the vessel’s operator, is at fault.
During this time, the charterers or receivers of the cargo must pay the ship-owner compensation.
