Deepwater drilling includes challenges of drilling in water depths of more than 1,000 meters and even reaching depths of 8,000 meters. Indeed new technologies could open access to previously unattainable oil across the globe. Challenges include drilling through and maintaining verticality through salt layers, maintaining good hole conditions in reactive shales and preventing fluid loss under high hydrostatic pressures
Oil and gas industry has often been termed a cyclical business in that when prices of oil and gas are low, petroleum companies cut their exploration spending thus setting the stage for a new price hike as supplies lag again behind demand. Indeed over the last century O&G production companies have tended to underinvest in periods of falling prices leading to countless up and down cycles. The price collapse of the 1980s led companies to reduce investments and sparked a wave of mega-mergers throughout the sector and then left the world scrambling for oil when demand from Asian and Latin American economies soared during the first decade of the 21st century
In a gas sales contract, after the end of the plateau period, a depletion contract will enter the decline period. At this time the DCQ will be reset each year according to the production capacity remaining in the field
Cushing is a major hub in oil supply connecting the Gulf Coast suppliers with northern consumers. Cushing is famous as a price settlement for WTI on the NYMEX and has been cited as the most significant trading hub for crude oil in North America
Means an operation whereby a well is drilled to an objective Zone below the deepest Zone in which the well was previously drilled, or below the deepest Zone proposed in the associated AFE (if required), whichever is the deepest
A request for a physical quantity of gas per day under a specific purchase, sales or transportation agreement
Panamax (50kt-80 kt), Aframax (75kt-115kt), Suez-Max (130kt-160kt), VLCC (160kt-320kt), ULCC (320kt-550kt)
Removing a piece of equipment from action (such as removing all the infrastructure after its has passed its life span for instance removing wells from the sea-floor after a field has been depleted). It is the preferred term (rather than Abandonment) for the re-use, recycling and disposal of redundant oil and gas facilities. In nuclear power it is also the removal of a facility (e.g. reactor) from service, also the subsequent actions of safe storage, dismantling and making the site available for unrestricted use
Volume of gas which is required in underground storage field to maintain minimum field pressure. This cushion gas (or base gas) is not available for withdrawal so long as the storage site is being actively operated.
The cushion gas is only produced when the facility is decommissioned.
The quantity of natural gas needed to maintain adequate reservoir pressures and deliverability rates throughout the withdrawal season. Base gas is usually not withdrawn and remains in the reservoir. All natural gas native to a depleted reservoir is included in the base gas volume.
