Grasp the background and politics of standard setting for oil and gas accounting. Introduction into oil and gas industry price differences of the same type of oil due to geographical areas. Oil and gas accounting learning objectives after reading this chapter, you should be able to. For it to be the fuel that can go into a car or converted into plastics, it must go through a. The multiplicity of factors that influence the directions of the petroleum production chain is huge, making the task of preparing strategies and action plans. Understanding the oil and gas industrys current financial weaknessand how the industry so quickly moved from strength to fragilityrequires some foundational knowledge in two areas. The oil and gas industry overview and trends nrgi reader april 2015 this reader is intended for use in conjunction with the natural resource charter. No part of this publication may be reproduced, electronically transmitted e.
There are five phases to the life cycle of upstream oil and gas industry. Understanding the oil market an industry primer with breakdown of recent trends by segment. It is intended to give a basic understanding to those who aim to promote. December 6, 2008 abstract this paper examines the factors responsible for changes in crude oil prices.
Given the high entry costs relating to many oil and gas industry operations. The enduser community using this resource is diverse, and includes representatives of government, industry, academic institutions, nongovernmental organizations, and individuals. Introduction into oil and gas industry different types of oil by geographical locations 8. Oil and gas sector comprise three main activities upstream exploration and production. Without a concerted policymaking effort, these investments will likely continue to flow disproportionately toward unconventional oil. Historically, we know the tales of eternal fires where oil and gas seeps ignited and burned. Vision 2040 global scenarios for the oil and gas industry 5 how to read the study few areas of the economy are as volatile literally and figuratively as the oil and gas sector. Oct 30, 2019 the survey asked in which areas the industryirrespective of upstream, midstream or downstreamneeded to improve. It contributes significantly to the gross domestic product gdp of many nations and generates billions of. This reader covers basic information about oil and gas and the industry that extracts them.
Understanding the oil market an industry primer with. Funded by understanding natural gas and lng options. Financial reporting in the oil and gas industry 3 foreword international financial reporting standards ifrs provide the basis for. Eisb provides endusers with technical understanding and practical options around oil, gas, and mining sector development issues. Recently i have been fortunate to be in a position to learn a lot about the basics of the oil and gas industry. The recent large offshore natural gas discoveries in africa have focused the attention of the international oil and gas industry on large lng export projects that are essential to monetize these resources. Oil has been used for lighting purposes for many thousands of years. Over 100 countries either use or are adopting ifrs. Oct 25, 2011 introduction into oil and gas industry 7. Natural gas and lng development can enable economic development and stimulate further investment in national infrastructure. Our goal is to provide a cleareyed roadmap to understanding the oil and gas industry and evaluating the opportunities and potential risks realistically.
The oil and gas industry natural resource governance. Receive your free insiders guide to investing in oil and gas wells now. Professor alex kemp and linda stephen university of aberdeen abstract. Understanding oil and gas tax subsidies april 2014 5 introduction the federal government has been subsidizing the oil and gas industry through the tax code for almost a century. Jun 10, 2014 recently i have been fortunate to be in a position to learn a lot about the basics of the oil and gas industry.
This site will help arm you with the knowledge, tools and confidence to make smart oil and gas investment decisions. Understand the secs reserve recognition accounting rra proposal. Risk management for most offshore oil and gas operators begins with a multidisciplinary approach to. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds. It includes qra which is covered in more detail in a separate course, escape, evacuation and rescue analysis eera, tr impairment assessment tria. These include but are not limited to the upstream, midstream, and.
Companies are seeing major shifts in supply and demand and thinking about ways to sustain growth. In 2017, 92% of transportation fuel came from petroleum,2 while 32% of electric power and the majority of nonelectric commercialresidential energy came from natural gas. During this time, the oil and gas industry has grown into one of the largest and most profitable. Management is designed for professionals from all levels of the oil and gas industry, including. Organization of the petroleum exporting countries opec andor its member countries concerning the legal. I would say that i am now in possession of an understanding of the industry far greater than the average layman. The instrument must be considered as an entirety and.
How can the north sea oil and gas industry be revitalised. Industry professionals who seek a greater understanding of oil. Introduction to the oil and gas industry who should attend beginning specialists in the oil and gas industry oil and gas professionals who wish to obtain an integrated overview of the oil and gas industry as a whole translators who need indebt understanding of oil and gas terminology. A sourcebook for understanding the extractive industries provides developing countries with a technical understanding and practical options around oil, gas, and mining sector development issues. The oil and gas industry is the largest sector in the world in terms of dollar value. International energy agency, oil market report, sept. Understanding the oil and gas industry s current financial weaknessand how the industry so quickly moved from strength to fragilityrequires some foundational knowledge in two areas. Nov 29, 2015 here i briefly overview the three primary segments within the oil and gas industry. Oil and gas production handbook an introduction to oil. Oil and gas iq webinars offer online lessons and case studies for the oil and gas industry. Havard devold oil and gas production handbook an introduction.
Pdf this paper relies on available literature to embark on a historical. Broadly speaking, natural gas can be divided into two categories. Understanding us natural gas consumption after a decade of incredible growth, the us natural gas industry is at a crossroads. Realizing the potential of north americas abundant natural gas and oil resources, also approved the making available of certain materials used in the. Oil 101 a free introduction to the oil and gas industry i this first of 10 modules, we introduce the learner to some key fundamentals of the upstream segment of the. Mar 06, 2020 the oil and gas industry is the largest sector in the world in terms of dollar value. Understanding the basics about the oil and gas industry. The course provides an introduction to and understanding of the various types of specialist risk study which may be carried out for an oil and gas or process industry facility or operation. Dry natural gas is also known as consumergrade natural gas and this is the type of gas this series will focus on. As a result of investment in canadas oil and gas industry to 2020, an average of 660,825 to 715,250 direct, indirect and induced jobs will be sustained annually. The uk offshore oil and gas industry exhibits all the signs of a mature petroleum province, with long term declining production, exploration, and size of new discoveries, plus very high unit costs. Petroleum and natural gas are the largest energy sources for the united states. Here i briefly overview the three primary segments within the oil and gas industry.
Title 1 1 timelines and actors in the oil and gas industry lifecycle 1. Understanding us natural gas consumption deloitte us. An introduction to the petroleum industry government of. Technically, oil and gas are not sustainable as they are not renewable resources. Petroleum migrates as a mixture of oil, gas and water. These include but are not limited to the upstream, midstream, and downstream sectors that many commonly know. Oil and natural gas industry preparedness handbook 5 the oil and natural gas industry has created the following strategy document to ensure that roles, responsibilities and needs are clearly identified prior to any events that may affect the integrity of oil and natural gas systems. In early 2014, we provided this training to employees, political leaders and key representatives from the media in kenya and uganda. Assigning oil and gas leases chapter 20 2 with the surrounding circumstances, unless that intention is in conflict with some unbending canon of construction or is repugnant to the terms of the grant. Continental shelf ocs and in the broader oil and gas industry, at their core they all follow the same processidentify, analyze, evaluate, control, communicate, and monitor. Refining what comes out of the ground is not often a form of petroleum that can be used right away. From the economics to the science and technology, this is a complex marketplace. Short guide summarising the oil and gas industry lifecycle for a non.