When infrastructure funded by one party can be used by other parties, including competitors, such as in a transmission system, a distribution network, an LNG facility, at a regulated tariff. A regulatory mandate to allow others to use a utility’s transmission and distribution facilities to move bulk energy/power from one point to another on a …
Operational flow orders and other alerts help protect the integrity of pipelines by requiring shippers to take action to balance their supply with their customers’ usage on a daily basis within a specified tolerance band. Such system-wide alerts are often given in order to manage imbalances in the system and handle within-day volatility due to …
In order to run the joint venture (oil and gas exploration) efficiently, the parties will appoint an Operator to act on their behalf. The Operator will reap no gain and suffer no losses in doing so. The Operator will be the motivating party in taking the work forward by proposing budgets and plans and running …
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Calculations can be made for a power plant to optimize the number of generating units in operation for each hour of the day in order to attain the total generation scheduling of a plant in the most economic way, including tradeoffs that need to be made between start-up/shut-down of generating units and the plants overall …
The US and other OECD countries are concerned by their “oil addiction” in general and specifically their dependence on Middle East oil. Indeed, the world has, does, and will continue to depend on the Middle East for over half its oil. That is hardly surprising since this region holds over half of the world’s energy …
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To carry out offshore drilling an artificial drilling platform must be constructed. This artificial platform can take many forms, depending on the characteristics of the well to be drilled, including how far underwater the drilling target is. There are two basic types of offshore drilling rigs: those that can be moved from place to place, …
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Natural gas that is transported to the end user by the company making final delivery of the gas to the end user. The end user purchases the gas from another company, such as a producer or marketer, not from the delivering company (typically a local distribution company or a pipeline company).
An offtake agreement for natural gas is a long term sales agreement of the project products with one or more off-takers which usually includes long term sales, a fixed or agreed price, and a take-or-pay
The different phases of the oil and gas exploration process are along the following lines: A country publishes a competitive licensing round process where licensing blocks are offered to competing bidders; Individual companies or groups of joint ventures may apply for an E&P license. Usually, the licensing authority will assess the applicants based on the …
Geological and geophysical costs, delay rentals, amortization of unproved leasehold costs, and costs to drill exploratory wells that do not find proved reserves are expensed as oil and gas exploration. the costs of an exploratory well are usually carried as an asset if the well finds a sufficient quantity of reserves to justify its capitalization …
