Category: Oil and Gas business

The 1973 oil crisis began on October 17 1973 when the members of OPEC announced as a result of the ongoing Yom Kippur war that they would not longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt. At the same time, OPEC members decided to use their leverage over the world price-setting mechanism for oil in order to raise world oil prices

An operation on a well designed to demonstrate the existence of moveable petroleum in a reservoir by establishing flow to the surface and/or to provide an indication of the potential productivity of that reservoir. Some flow tests, such as drill stem tests (DST) are performed in the open hole. A DST is used to obtain reservoir fluid samples, static bottomhole pressure measurements, indications of productivity and short-term flow and pressure buildup tests to estimate permeability and damage extent. DSTs are performed in the open hole. Other flow tests, such as single-point tests and multi-point tests, are performed after the well has been cased. Single-point tests typically involve a measurement or estimate of initial or average reservoir pressure and a flow rate and flowing bottomhole pressure measurement. Multi-point tests are used to establish gas well deliverability and absolute open flow potential. When you test a small amount of gas or oil over a period of days the pressure it is at will often decline indicating limited amounts of oil or gas present. If a performance modeling indicates that a well can be ultimately completed to achieve a high production rate (e.g. production rate of over 150 Mmcf/d. as reported by Noble Energy regarding Tamar), it is an indication that the pressure in the well was fine, although eventually it is long term testing over several months rather than days that proves an accurate state of affairs

Tall metal structure used to burn off gas produced by the oil/gas separation in oil fields, when it is not possible to utilize it on site or ship it elsewhere. An open flame used to burn off unwanted natural gas

The amount of foreign personnel, material and services that an oil and gas company working in a foreign host country is permitted to employ and import when drilling for and operating a well with the relevant tax regime per product, as defined under the terms of each country’s concession agreement.

The three year average unit finding & development cost is calculated by dividing the total exploration, development and unproved acquisition costs incurred over the period by the total changes in net proved reserves (excluding purchases, sales and production) for that period

The First Trust ISE-Revere Natural Gas Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE-Revere Natural Gas IndexTM. The ISE-Revere Natural Gas IndexTM is an equal-weighted index comprised of exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas. The Index is constructed by establishing the total population of stocks listed in the U.S. of companies involved in the exploration and production of natural gas and then eliminates stocks whose natural gas proved reserves do not meet certain requirements. From this universe, all candidate stocks are ranked using four different methods including Price/Earnings ratio, Price/Book ratio, Return on Equity and the correlation to gas futures prices. To meet index eligibility, a stock must also satisfy market capitalization, liquidity and weighting concentration requirements. Then rankings are then averaged and the top 30 stocks based on final rank are selected for the Index. The Index is rebalanced on the application of the above model on a quarterly basis