1. Value chain of the oil and gas industry : upstream, midstream, downstream
a. Upstream: Exploration and Production
b. Midstream: Transportation
c. Downstream: Refining, marketing, accounting and sales
2. Oil and gas was formed from dead prehi
0 out of 0.666 points
What is an interface?
The zone between two
0.666 out of 0.666 points
What is royalty interest?
landowner's share of gross production without the burden
1. What are the 7 factors that influence crude oil prices and markets? Explain Briefly. (refer to lecture
packet and the EIA article What drives crude oil prices?(located on the left Readings menu in
Homework 10 Units 14: Real Options
1. Name three types of Real options.
Option to expand
Option to wait
Option to abandon
2. Give an example of Option to Wait.
Example: if your oil company expecting to generate more profits 1 year later when oil price goe
Homework 2 for Units 3-4 (Production and Transportation)
1. Explain the following terms:
a. cementing: Part of the process of preparing a well for further drilling, production or
abandonment, cementing a well is the procedure of developing and pumping cem
Occidental should drill Bennett Well, since it take less time to recover the initial investment than Argo
$60/barrel x 2,000 barrels =
Royalty 12 %
Severance Tax 5%
1. Define the following:
a. Reserves, the amount of oil and gas that can be recovered from known reservoirs given existing
technologies and current economic operating conditions.
b. Proved reserves, oil and gas which have not been produced but has been lo