Preview

Oil and Gas

Good Essays
Open Document
Open Document
633 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Oil and Gas
Midstream Gas Processing
Frac Spread
What is it?
Why is it important?
The Midstream Value Chain
Gathering / Processing
NGLs
Fractionation
Transportation
Storage
Marketing
Chemicals, fuels, blend stocks
Residue Gas
Transportation
Storage
Marketing
Utilities, industrial
Most Raw gas produced at the wellhead is not pipeline quality
Must be processed
Ethane
Propane
Normal Butane
IsoButane
Natural Gasoline
How midstream companies make money
Gathering – fee/ commodity based
Processing – Fee
NGLs
Fractionation – fee
Transport or Storage – fee
Marketing trading
Residue Gas
Transport/ storage
Gas Marketing

What is the FRAC Spread?
The difference in value between NGLs locked up in a gas stream and NGLs extracted from the gas stream sold separately
How do we realize Value?
Gas processing extracts NGLs from the raw gas stream
Gas Processing creates two marketable products:
Residue Natural Gas (MMBtus)
Natural Gas Liquids or NGLs
A positive FRAC spread occurs when the value of the two individual products are greater than the value of the raw (wet) gas stream
Ethane Rejection
When the cost of producing ethane is not more than the cost of natural gas

Chapter 12
Joint Interest Accounting

SFAS No. 69
Include the following in the 10K
Historical Cost – based:
Proved Reserves
Capitalized Costs
Acquisition, exploration and development costs
Production information
Future Value – based:
Discounted future net cash flows relating to proved reserves
Any changes in the standard measure of the future net cash flows
Include for SEC Industry Guide 2
Production
Average sales price
The average production cost
Productive Wells and acreage
Total gross and net productive wells
Total gross and net developed acreage
Undeveloped acreage
Undeveloped acreage both net and gross acres by area
Terms of the lease
Drilling Activity
The number of net productive and dry exploratory wells
The number of net productive and dry
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    A&P2 midterm
    • 1551 Words
    • 6 Pages

    A&P2 midterm

    directly related to the concentration of that gas in the mixture and the total pressure of the mixture.…

    • 1551 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Oil Drilling and Gas Extraction Industry in the US Analysis
    • 1249 Words
    • 5 Pages

    Oil Drilling and Gas Extraction Industry in the US Analysis

    Natural gas production accounts for 41.6% of industry revenue in 2012. Prices in natural gas reached a 10-year low in April this year, but have erupted by more than 70% since (Hargreaves, 2012). Natural gas has seen an abundantly large output due to recent discoveries of natural gas in the Appalachian Basin;…

    • 1249 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Physics Lab Questions
    • 263 Words
    • 1 Page

    Physics Lab Questions

    43. When a steadily flowing gas flows from a larger-diameter pipe to a smaller-diameter pipe, what happens to (a) its speed, (b) its pressure, and (c) the spacing between its streamlines?. Pressure increases because pv=nrt spacing between streamlines still exsist, they are just crammed together to all fit through the pipe.…

    • 263 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Eco 365 Week 1
    • 708 Words
    • 3 Pages

    Eco 365 Week 1

    Gasoline pricing is a constant irritate for many of us who are not happy about the high cost of fuel and why it remains high. We can use empirical results that can provide evidence to this very contention of high fuel expense if we research the following: Asplund et al. (2000), Bacon (1991), Borenstien et al. (1997), and Peltzman (2000). These explanations can provide some prime evil example of why the costs are constantly affected in our everyday life. When crude oil is produced it provides the cost per barrel depending on how many barrels it’s producing, therefore if the price is $ 80 dollars per gallon it may in fact cost the consumer the same amount by the cost of fuel per gallon. (Rising Gas Prices)…

    • 708 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Oil Fracking
    • 582 Words
    • 3 Pages

    Oil Fracking

    My name is Santiago Arellano, and I am a resident of Broomfield Colorado. I would like to present my opinion on the North Park Hydraulic Fracturing. Hydraulic Fracturing is a very ingenious way of removing oil from the deep Shale, which we have been unable to reach. This method, also known as Fracking, is also very small. It starts out with a drill rig and a holding tank for the first 3 months, but then once the well is dug, it looks like another oil drill, and will continue to draw oil from the ground for the next 20-30 years. Fracking involves the use of radioactive materials, explosives, and hazardous chemicals. I believe that, as Fracking becomes more popular, and less scrutinized, the watch over it will become less strict, and these materials will leak into groundwater, or into our rivers and lakes.…

    • 582 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Gasland Rhetorical Analysis
    • 618 Words
    • 1 Page

    Gasland Rhetorical Analysis

    clearly define that Natural Gas Companies are in the wrong and that the general public could…

    • 618 Words
    • 1 Page
    Good Essays
    Read More
  • Good Essays

    Multiple Governments and Intergovernmen
    • 508 Words
    • 2 Pages

    Multiple Governments and Intergovernmen

    regulations and the role of natural gas. A white paper by Energy Vision. Retrieved from…

    • 508 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    What Were The Differences Between The North And South
    • 610 Words
    • 3 Pages

    What Were The Differences Between The North And South

    The North and the South The North and South had similarities and differences in the 1800’s, but can the differences drive them to a civil war? Women were mad about having so little rights, slavery was being questioned, and the political parties couldn’t seem to agree. Women in the United States had little rights, but women in the North had more, but not where it really counted. In the North, women had ownership of their wages and property (Holt, pg. 427). New York demonstrated giving women more rights, than other Northern states soon followed.…

    • 610 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Capitalism & Greed
    • 582 Words
    • 3 Pages

    Capitalism & Greed

    In the article, "Capitalism and Greed"(1982) by James L. Doti the author states, “In his path breaking work, The Wealth of Nations, Adam Smith described an economic system based on self-interest"(1). This economic system based on self-interest is the foundation for capitalism and pertains to the 21st century where America still uses capitalism as its economic model. In the article, "America's Disease is Greed"(2004) by Andrew Greeley, he discusses and makes many points how greed comes with capitalism. First glance at a capitalist economy the morals of the self-interest theory might get questioned, but a more in depth look at the capitalist society it shows that it is the best way to gain economic performance.…

    • 582 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Physics Assessmrnt
    • 850 Words
    • 3 Pages

    Physics Assessmrnt

    (a) Could gas A and gas B be samples of the same gas at different temperatures?…

    • 850 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Brownsville Case Study
    • 774 Words
    • 4 Pages

    Brownsville Case Study

    Several large U.S. manufacturers including Dow and Alcoa are strongly opposed to exporting natural gas as it will drive up their production costs, thereby increasing the cost of the products that they make. That will make their products more expensive and less competitive. Higher natural gas prices will also mean higher electricity rates, which in addition to driving up consumers’ electricity bills will increase the prices of goods and services that Americans rely on.”…

    • 774 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    America’s Foreign Oil Dependency
    • 3254 Words
    • 14 Pages

    America’s Foreign Oil Dependency

    President George W. Bush recently stated in his 2006 State of the Union address, “Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology.” The President of the United States understands why America must do everything it possibly can to research other more feasible methods of energy to fuel our cars because the foreign countries America currently depends on to supply such a precious fuel is unstable and very undependable.…

    • 3254 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Reason for High Gas Prices
    • 2452 Words
    • 10 Pages

    The Reason for High Gas Prices

    One night, I was surfing the internet when I came across a picture showing a gas station with the gas prices on a sign sitting in front of it. The gas sign said that the price for regular was "an arm", the price for plus was "a leg" and the price for premium was a "first born". As I marveled over what Photoshop can do, I began to think about these high gas prices and what is causing them. Everyone talks about, complains about, and jokes about the high gas prices, but no one does anything about them. Many people told me what they thought was causing the high gas prices, but I was always wondering what really is causing them. Is it corporate greed or is it supply and demand? It is actually a combination of both corporate greed and supply and demand; the solution to the high gas prices is to break away from using fossil fuels by supporting alternative fueled cars.…

    • 2452 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Property Investment Analysis Report
    • 4441 Words
    • 15 Pages

    Property Investment Analysis Report

    Mallinson Report and the Carsberg Report presented the valuation profession with a number of comprehensive and far reaching proposals. If implemented, would represent a significant change in the way in which many valuations and appraisal are to be undertaken, presented and justified. We discussed how these recommendations are incorporated into property investment analysis and the subsequent methods. A case of ownership interest is valued using conventional term and reversion approach and DCF. DCF is further discussed for it is better incorporated into the recommendations.…

    • 4441 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Good Essays

    Natural Gas
    • 683 Words
    • 3 Pages

    Natural Gas

    Initially, wells are drilled into the ground to remove the natural gas. After the natural gas is extracted, it is treated at gas plants to remove impurities such as hydrogen sulfide, helium, carbon dioxide, hydrocarbons, and moisture. Pipelines then transport the natural gas from the gas plants to power plants.…

    • 683 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics