Ex-ship
Refers to the delivery basis for most traditional long term LNG contracts. Agreed price includes cost of freight and insurance for transporting the LNG by tanker to buyers’ facilities. Usually contrasted with Free On Board (FOB)
Farmin, Farm-in
When a company buys an interest in a block and takes upon itself all or part of the financial undertakings for drilling the exploration well. Farmin, farmout process at exploration stage: It is usually done this way: Normally farm-out recognizes the advantageous position of the license holder and often the farminee carries the license holder …
Farm-out brochure
Brochure prepared by holders of an oil or gas exploration license in order to present the acreage to potential farminees (parties interested to buy a percentage in the license). The brochure will usually contain an executive summary, seismic interpretations, farmout terms, permit details, asset market, etc.
Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission regulates and oversees energy industries in the economic, environmental, and safety interests of the American public. The US federal agency responsible for overseeing the wholesale energy market in the US and regulating interstate trade in electrical energy. Usually referred to as the FERC, this five-member commission was created as part …
Feed-in law; Feed-in tariff; Feed in tariffs
Law, such as in Germany and Spain which requires utilities to purchase electricity from renewable sources and allows private investors developing a solar power plant to feed electricity into the grid and get paid a lot more than the conventional rate. Feed-in tariff is an incentive structure to encourage the purchase of electricity generated by …
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Fifth fuel; The “fifth fuel”
What is pejoratively known as the “fifth fuel” refers usually to energy conservation. This is in additional to oil, coal, nuclear, renewable sources. Namely, that beyond petroleum, coal, nuclear and alternative energy, there’s another, untapped resource: efficiency
Financial crisis of 2008 and its affect on energy; Subprime mortgage crisis
Financial crisis has lead to plunging oil prices, high level of volatility, the turmoil on financial markets, and the steady slide into recession of many economies. The roots of the crisis can be found in the US subprime mortgage crisis, which began in summer 2007. It is well-recognized that the main drive of the deepest …
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Financial gas market
Contracts traded on the financial gas market have two purposes: minimize price risk of natural gas spot market and minimize the basis risk from the changing price differential between the physical and financial gas contract. Financial gas contracts are also an instrument for speculation and price arbitrage in the gas market. They are seldom used …
Financial gearing
A term used to describe the relationship between a company’s debt and equity shareholders’ funds. Gearing is usually expressed as a percentage and is calculated by dividing the company’s debt by its equity. A highly geared company is one where there is a high proportion of debt to equity and can be considered a risky …
Energy management system
A network control system, usually computerized, which is used by utilities to monitor various aspects of the generation, transmission and distribution of electricity