Category: Oil and Gas business

Day when gas first starts to flow

A recording of the in-situ rate of fluid flow at different depths in a well, normally one completed for production or injection. The flow profile is a log recorded in a unit such as barrels per day, or as a percentage of the total flow from the reservoir in a production well or into the reservoir in an injection well

An explosion is a flame front that moves extremely fast especially in congested areas. LNG regas plants onshore are thus spread out to limit the speed of the flame fronts and the size of the explosions. With offshore LNG terminals this is more complex to achieve and thus the survivability of an offshore facility can be in question

Usually defined as oil/water contact or gas/oil contact

An energy transaction in which the seller seeks to set a minimum fixed price (floor) and the buyer set a maximum price (ceiling). A floor price is a level below which the price will not be allowed to go regardless of whether escalation would normally have taken it below that floor level. So normally sellers want a ‘floor price’ while buyers want a ‘ceiling price’ i.e. one that cannot be exceeded. This differs from a base price which defines what price the escalation is applied to and the actual or effective price may be above or below that base price depending on how the escalation factors move. In the past many long term natural gas contracts had a floor and a ceiling price as an accepted form of protection for both buyer and seller. Natural gas contracts in Israel with IEC were also based on this concept

A method of valuing the cost of oil sold based on selling first the oldest oil bought whilst the remaining sales stem from current oil production. This can cause accountancy losses if oil is purchased at a higher price and prices consequently fall and is the system in use for instance at the Ashdod Refinery

The speed, or velocity, of fluid or gas flow through a pipe or vessel. Also the reservoir flow rate, which is one of the parameters used in flow testing analysis to determine the quantity of gas available in a natural gas field. Even when favorable geological, geophysical and petrophysical data are available for exploration or development activities in a field, there is no alternative of knowing that the wells in the area of interest would actually flow the desired fluid(s) at economical rates. This means that dynamic evidence of recoverable hydrocarbons is needed eventually. Well testing is one of the most effective means of characterizing hydrocarbon reservoirs under dynamic conditions. Such characterization of reservoirs is as accurate as the measured rates and pressures, fluid properties and relevant geological and petrophysical information. It is, therefore, essential to have accurate measurements of both flow rates and pressures due to their complementary nature in given reservoir system. Although in most cases, pressure measurements are accurate, more attention needs to be paid to the flow rate measurements, especially during the early stages of exploration.

Well completion. To finish an operation or process (slang)

Drilling contracts dollar amounts are usually quoted on a daily rate or a footage rate. Under a daily rate contract the agreed upon dollar amount is paid regardless of the footage drilled. Under a footage rate contract an agreed upon dollar amount is paid based upon each foot drilled, with payment usually contingent upon a specific drilling depth being reached. A drilling contract can also be on a turnkey basis, under which condition the drilling contractor takes upon himself the full responsibility and is totally in charge of drilling and completion operations

Used to provide for decommissioning expenditure