The Oil And Gas Industry

The passage I will analyze in this close reading is from the works of Theodore

The oil and gas industry is expansive and rather complex industry consisting of oil, fossil fuels, natural gas, oil and green energy sources. Combined the above sources make-up 32% of total energy consumed worldwide.

Oil was first thought to be discovered in the state of Louisiana in 1868 by the Louisiana Oil and Coal Company fifteen miles west of Lake Charles. However, the Louisiana Oil and Coal Company was unsuccessful at drilling oil but the company did find extensive sulfur deposits. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/) Oil was first discovered in Louisiana on September 21, 1901. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/)

Chesapeake Energy operates under the natural oil and gas industry. While government’s economic data may separate operations within this industry, the industry covers a broad range of activities and is separated into three segments: upstream, downstream, and midstream. Activities within this industry by oil and gas companies include exploring for crude oil or natural gas, drilling into wells, and such transportation of oil and natural gas. Just as any other industry, the gas and oil industry have major risks that companies take into consideration and extensively consider. These risks have the capability of drastically affecting operations, and ultimately the profitability and financial stability of a company. Three top risks related to oil and gas companies are volatile prices of oil and gas, regulatory changes, and finding new reserves or extending prior ones.

In the initiation phase of the project, Anderson and Gable, decided to deliberately present false information to the client in regards to the project specification. Therefore, they both knew the risk that they did not have the capability of satisfying the project specification. However, they decided to go through with giving false information in order to win the tender, armed with the intention of negotiating the specification scope with the client halfway down the project. This approach of managing risk should not be accepted and is not recommended as it shows that the management

The U.S. Energy Sector is one of the most critical infrastructures, essential for the functionality of the U.S. as we know it. Why is that you might ask. This is because it provides support and keeps all the other critical infrastructures running. Without the Energy Sector the country might as well shut down and be of no use. With the energy sector affected, there would be immediate panic and a visible effect on the economy and its people. So, let’s dive in, what is the Energy Sector all about?

BP is a British multinational oil and gas company; whose headquarters is on London. BP developed its reach in America by buying up companies like Standard Oil of Ohio, ARCO and Amoco (Tharoor). “Twenty years ago, BP was nothing like the powerful multinational corporation it is today” (PBS: Frontline). BP became this powerful company by using an ideology known as “run to failure.” In other words, use things until they break in order to save money (PBS: Frontline). Over the years, many oil companies have faced legal problems regarding the meeting of environmental standards, most notably was British Petroleum (BP). In recent memory, British Petroleum (BP) has been facing troubles year in and year out. In 2005, an explosion in Texas City

When the oil and gas companies drill for oil, they also get a byproduct of drilling is natural gas. This gas can be used to generate power and then those power can resell as electricity; but this conversion process requires a lot of investment such as pipelines, power plants, and infrastructure. However some oil Company just sell the oil and burn the gas because it’s cheap compare to extract it, which is called gas flaring. Flaring and venting of natural gas is a wasted resource from an economic viewpoint and also responsible for polluting the environment. Every year, roughly about 140-150 billion cubic meters (bcm) of natural gas is flared into the atmosphere which account for 1% of global carbon emissions gas flaring. Gas flaring is

A majority of oil and gas companies will agree that data management, on a massive scale, is the toughest aspect of their industry. At the end of the day, data, rather structured or unstructured, is still just data. This raw data means nothing unless it is converted into intelligible data and data on this scale must be converted through an advanced data management system. GIS was designed with this task in mind.

The construction industry like many other industries has changed and evolved with time. It is the fourth largest contributor to Australia’s GDP and has played a major role in determining economic growth of the country. In terms of employment, the industry has employed 9% of the Australian workforce making it the fourth largest industry (ABS data).

The oil spill in the Gulf of Mexico in 2010 resulted in considerable damage to the environment, economy and human livelihoods. While BP, as one of the parties involved in the operation of the oil drilling on Deepwater Horizon rig, suffered huge financial loss and reputation loss, it was found to be the one to be mostly blamed due to its lack of risk management. As poor risk management can lead to an astonishing disaster like this, it appears to be necessary for every business to learn from BP’s mistakes and try the best to prevent such disaster from happening again. This report studies this case, focusing on two issues identified in BP’s risk management practices, namely its sloppy preparation for risks and its inappropriate communication strategy after the crisis happened. No evidence showed that BP had a sufficient emergency plan for the worst-case deep-water oil spill although the depth of the oil drilling was one of the deepest. BP’s unseriousness towards safety was also indicated in their attempt to shift blames to its contractors and the unaccountability shown by the words of BP’s executives during interviews. Based on the examination of BP’s deficiency in risk management, the lessons that can be learned from it are discussed. In brief, firstly, accurate risk assessment and appropriate emergency plan should be available before the operation is started. Secondly, post-crisis communication should show the world that the company cares and is accountable

Fixed-price contracts are the first category of contracts typically used by government agencies when seeking bids for jobs. This type of contract sets a specific budget for a project and seeks bidders who are willing to come the closest to this set amount. This contract, in most circumstances, is considered to be less beneficial to contractors. The advantages for contractors with these jobs are that the contract documents the budget and time frame before signing onto the project and when done properly, a contractor can earn a profit from this type of contract (Arye 2000). However, should the cost of supplies be unexpectedly high or there by unexpected delays and setbacks, the job may need to be completed at a loss. This is the most common

The exploration phase takes about 5 years. It involves looking for oil and gas using seismic surveys. There is about 10% certainty to find oil and 75% certainty to find any oil at all. The exploration costs for a conventional oil and gas onshore is $10 - $15 million whereas it is $10 - $100 million in the deepwater’s.

E&P of oil and gas usually considers as a high-risk business that may have a big impact on the stakeholders of the project. Studies have shown that geological concepts are not absolute when it comes to determining the reservoir seal, structure, and hydrocarbon charge (Suslick et al., 2009, p.30). The engineering parameters at the stage of development and production possess vast amounts of uncertainties regarding critical variables such as production schedule, infrastructure, operational costs, quality of oil, and characteristics of the reservoirs. This suggests that the primary stakeholders who will be affected are the owners of the of the E&P company. In case a firm is unable to find resources that are economically viable after investing the high amount of resources, it implies that owners of that company will have to incur a huge loss since the invested funds cannot be recovered (Suslick et al., 2009).

▪ India 's ONGC lags in global oil race. ONGC 's setbacks in acquiring major oil resources are made worse by the Indian government 's order to help shoulder the burden of subsidized fuels earlier this year, which pushed the country 's biggest refiners into the red.