The very first step of petroleum exploring is obtaining an exploration licence. An exploration licence enables owners of petroleum companies to perform initial geological studies on specific areas of interest. The licence has a lifespan of 5 to 6 years. A company who wishes to perform an oil exploration or build a ‘wildcat well’ must fulfill certain work commitments like possessing suffice equipment to conduct studies and surveys on the area. The company also must capable of providing ‘bonuses’ and ‘cash bids’ in certain cases during the exploration.
In order to completely utilize an exploration licence, owners of petroleum companies must undergo a certain timeline of processes. First of all, the owners must apply for the exploration licence from the government. The announcement of the closure of the application may very from 6 to 12 months from the day the application opens. Upon closure, the owners will have to wait for another 3 months for the approval or declination of their application. Once the government grants the permits to the owners, they may perform initial geological, geophysical studies, and seismic surveys on the interested land. These processes are commonly done in the first to the third year of exploration. On the forth to sixth year of exploration, the owners may wish to perform further seismic work and possible exploration to obtain more information from the targeted area.
In the case of not finding any potential reservoir, or that particular area requires more geological studies, the owners may consider a renewal of the exploration licences. The renewal of the licences allows the owners to perform further exploration up to another 5 years. If a company does not meet the obligation agreed in the licence, for...
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...ration costs and suffer any loss, if the project fails. For example, a company that has already acquired a permit to perform an exploration and production on an area could lease to another company to perform the work. The two companies will then negotiate on the portion of the revenue the former company would receive if the project succeeds.
For royalty interest, the owner of the permit will receive a percentage of the gross revenue or ‘well head value’ from the production. For net profit interest, the owner will receive a share of the net profit of the production revenue. The net profit is the value obtained by deducting expenses occurring in the production from the gross revenue value. The similarities of both of these interests are the owner of the permit does not have to pay for any cost, and does not participate in any decision-making occurring in the project.
On January 10th 1901 the discovery of oil at Spindletop would lead to the greatest economy boom the world has ever encountered. The amount of oil that would be discovered across Texas would be more than enough to power America through the next several decades. The effects of having oil would completely change Texas culture, lifestyle, and business tremendously. In the book of Oil In Texas, will prove that America would change completely from agriculture nation to an industrial nation after the discovery of oil in Texas.
Since 2001, Hydro-Quebec were doing oil exploration on Anticosti Island.Seven years later, they had found nothing. In 2008, Petrolia, a private petroleum producer, sign an agreement with Hydro-Quebec to continue the oil exploration and about the money that Quebec will receive if they find oil. Petrolia discovered for $75 billion of petroleum and Quebec will receive a small amount of $2.3 billion. Petrolia has the right to extract oil everywhere on the island except in the two national parks. Should we take the risk to break a fragile and unique ecosystem in order to gain money on a short-term? To answer this ethical question, we will look at positive effects and negative effects of extracting oil from different regions that had decided to go into the oil industry. Those regions are closely related to our case and we will finish off with the possible solutions that are offers to Anticosti.
...gy can successfully replace oil. Just as oil will not run out overnight, its replacement will be equally gradual. The success of this transition is largely contingent on time management. Presently, there is no nation privy to a miracle solution. A bulk of available alternative energy sources are not self sufficient, and require oil to jump start their production. Solar panels, while a step in the right direction, are built in factories, shipped in trucks, flown in planes dependent on oil. Oil needs to be conserved, reserved solely for uses that will benefit future generations, such as creating green energy products. As long as there exists a shadow of a doubt as to the inevitability of peak oil, the existence of debate serves not only as an obstacle, but as a cause for hope. When everyone is forced to acknowledge the peak oil issue, it may very well be too late.
As the world frustrated and fumbled at BP over their oil spill on April 20, 2010, the largest marine oil spill in history. Does anyone know the people of Nigeria Delta had lived with oil spillage conditions for the last 50 years? With her op-ed piece “The Oil Spill We Don’t Hear About”, published in The New York Times on June 4, 2010, Anene Ejikeme emphasizes on the oil spills in Niger Delta which is far more alarming and threatening than the BP Gulf Spillage. With her article, Ejikeme’s want to address these problems which appear to be ignored by the international media. In her article she stated, “Media around the world are covering the Gulf oil spill in a way that not even the Nigerian media covers oil spills in Nigeria.” Ejikeme adopts an informative, yet sympathetic tone to deliver and provoke the interest of the phenomenon for her readers. Ms. Ejikeme received her PhD from Columbia University in 2003 and is currently an assistant professor at Trinity University in San Antonio, Texas. She is considered as a specialist on modern African history; she’s been writing a variety of books and teaching a wide range of courses on the matter. Prior to coming to Trinity, Ejikeme taught at Barnard College in New York, where she was the Director of the Pan-African Studies Program from 2001 to 2003. This op-ed piece continues her interest on the problems that affects African society.
I spent three years in the U.S. Army. I always knew that one day I would join, but I wasn 't given the chance to finish what I started there. I gained a very unique perspective of the world. I was injured halfway through my first tour and subsequently I was medically discharged against my will. When I was transitioning out, there were many briefings I was required to sit through in order to complete the process. One of the most memorable was the resume writing class. If a soldier decided to attend and pay attention, I think the most important thing they would have learned is to never have a single plan. You should always have at least five plans for each important transition in life. These plans should all carry equal weight. Your time should
At the four year mark of the Deep Water Horizon accident in the Gulf of Mexico, the Environmental Protection Agency (EPA) allows British Petroleum (BP) to drill for oil in the gulf once again. Many consumer advocate groups, chiefly Public Citizens, have voiced concerns over this decision. The lack of corporate accountability and oversight makes this decision seem unethical to these advocates groups. However, the company agrees to follow the agency’s ethic and safety procedure given the new leases. Yet, a series of accidents on its infrastructure makes reform seem doubtful for the company.
“The conversation of our natural resources and their proper use underlines almost every other problem in our national life,” Theodore Roosevelt. Americans’ dependence upon petroleum-based energy sources has required the United States to consider a variety of options to fulfill [the] ever-increasing energy needs, even drilling in the Arctic National Wildlife Refuge [ANWR] (Smith). The controversial question on whether or not to drill in the Arctic National Wildlife Refuge reserve has been in battle since its establishment. Drilling in ANWR would cause severe damage as it is a danger to its native plants and animals as the land is their home and birthing ground, the land discussed to be open to drilling will not be the only land set to a path of destruction, and along with the use and distribution of the oil found, as of how much could be discovered and if it is worth losing precious land all to a nations greed of oil.
When Americans think of oil today, they think of it a substance that the United States relies heavily upon, that it is necessary in everyday life. Of course, that cannot be denied considering people use oil in an assortment of ways, from producing gasoline to fuel cars to heating homes and even as an ingredient in cosmetic products. However, during the 1800s, oil was considered a nuisance by farmers. When the use of oil was discovered in the 1850s, it soon became known as “black gold” and the oil industry soared. Many started to test their luck in oil refining, one of whom was John D. Rockefeller. Unlike many others, Rockefeller had great success as he soon became the president of Standard Oil, a company
Many different environmental groups have come together to ban the allowance of drilling within ANWR. All of these groups believe that ANWR needs to be protected from oil exploration (Twitchell, 2001, p. 2). The main argument that these
Upton Sinclair’s novel Oil is one of his more socialist attacks on corporate power, labor suppression, government corruption and corporate control of war, universities, and Hollywood. The novel was written during the Harding administration Teapot Dome Scandal set in World War I and 1920s era, in the early California oil fields.
Canada’s Oil Sands are found in Alberta. Habitat types found within this region are rivers, lakes, and their grasslands / forests area.
The BP’s oil spill resulted in a six month temporary prohibition on the deepwater drilling of oil in Gulf of Mexico. This resulted in Chevron not being able to work oil rigs having a depth of around 500 feet or more. Norway has also put a temporary restriction on the exploration in deep waters.
In recent years, deep ocean drilling and deep ocean mining has received a lot of criticism for its effects on the environment. Many of the mistakes made have caused irreparable damage to the wildlife and the economy that was based around it. In April of this year a multi-national company reached an agreement with Papua New Guinea that would allow them to open up the world’s first deep ocean mine. There are many groups who are against this agreement. One of the major ones being Greenpeace who argue that the marine ecosystem would never recover, and that the loss of species potentially unknown to science outweighs the need for raw materials. There are also those who welcome the agreement, citing that it could potentially be a new frontier in mining. This would allow for more raw materials to be extracted than other methods on land. This paper will analyze the legality of the issue, and the international conferences and declarations that have set the foundation for the agreement between Nautilus Minerals and Papua New Guinea. This paper will also analyze some of the major interest groups and governing bodies involved in the agreement to open the worlds first deep-sea mine.
Licensing occurs when a firm pays a fee and enters into a licensing agreement giving it the rights to another company's product, resulting in the rights to make or sell that company's product.
A petroleum engineer has many jobs for instance, they are required to fully understand how and what an oil well does, and designing systems to help the flow of the oil. The way an oil well is developed is first they choose a drilling point, then they set up the well and drill down for 1 to 2 miles after that they drill sideways for a mile or 2 as well. The very last process is when they send a mixture of sand, water, and chemicals to crack the well which then releases the oil and natural gas.