What is special about uranium? Some atoms are so unstable that they can split, or fission, thereby releasing energy. Some atoms need only a nudge from a neutron to fission. They are called “fissile”. In nature, there is only one fissile isotope, uranium-235. This makes uranium unique among the chemical elements. Uranium ore is mined …
An entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors. Underwriters generally receive underwriting fees from their issuing clients, but they also usually earn profits when selling …
Underwriting energy is regarded a far more hazardous than many other industrial risk. The nature of these risks include high concentration of values, highly flammable substances, harsh operating conditions, often hostile environments, complex business inter-dependencies, harsh weather conditions. Losses from physical damage and the associated business interruption from the major U.S. windstorms have cost many …
Continue reading “Underwriters in the energy industry; Energy underwriters; Energy insurers.”
Exploration acreage is an important part of an O&G company’s asset portfolio but it is nearly impossible for an analyst to estimate the value of a company’s acreage, especially the undeveloped acreage. Some undeveloped acreage includes proven undeveloped reserves attributed to it and the rest does not. Undeveloped acreage can have a substantial value (10-20%) …
Agreement between the owners of a single oil or gas field which extends into more than one license area to develop the field as a single unit and to allocate reserves, production costs, etc. The operations are thus carried out jointly to maximize recovery among separate operators within a common reservoir. A unitization agreement between …
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An O&G company can assess individually significant unproved properties for impairment of value on a quarterly basis and recognize a loss at the time of impairment by providing an impairment allowance. In determining whether a significant unproved property is impaired they consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable …
A two-dimensional picture of the subsurface. It generates a seismic section, which is a two-dimensional slice from the surface of the earth downward. This section is known as 2D seismic because it shows the width and depth. These are seismic data lines acquired individually such that there typically are significant gaps (commonly 1 km or …
Ultra High Voltage is defined as voltages of 1,000 kV alternating current, or higher, and 800kV direct current, or higher, and it is needed for two main reasons. The first is to deliver large quantities of power over very long distances with very little loss of power (higher voltage means lower current on the transmission …
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The National Transmission System is the high pressure part of National Grid’s transmission system and it consists of more than 6,600 Kilometers of top quality welded steel pipeline operating at pressures of up to 85 bar. The gas is pushed through the system using 26 strategically placed compressor stations. From over 140 off-take points, the …
Oftentimes a pipeline transmitting gas from a producing state to a consumer state passes via a third country, known as the transit state. These states levy a transit fee on the rights of way on their land, which can be both financially onerous and provide political clout to the transit state
