The Risk and Reward of Oil Exploration

Oil exploration is an expensive, high risk operation, and clustered under the science of petroleum geology.

major risks off shore drilling the causes and the effect on the environment. The overall argument

The client had seen a record oil sand production through important milestones and operational performance. Building strong midstream capabilities had provided Suncor with triple their production to compete the market. During 2002, with the major competitors Suncor was not doing well, however once they bought petro Canada over, then they came to the second place in the energy industry. Suncor has made an improvement through the use of technology to lower the long run costs through innovation for sustainable energy development. Suncor has started decline with the market, for pipeline constraints, new entry of energy companies, and by higher costs to produce oil. In order to find the risks of this company, client risks must be identified, testing according to the plan must be done to improve the profit and revenue.

This report presents information regarding the industry, the primary operator of oil and gas field properties. The industry fuels its key buyers, the Natural Gas Distribution (22121) and the Petroleum Refining (32411) industries, with crude oil and natural gas. The industry continuously battles a shortage of available oil. In addition, many major oil fields have been in use for decades, slowly waning. Currently, the industry grosses among the most profitable in the US despite these and similar obstacles. The benefits of investing here

September 5, 1927 marked a turning point in the history of oil exploration. Before then, to assess the composition of subsurface rocks to find oil pay-zones, scientists had to rely on core samples brought up from boreholes. These were highly unreliable and drilling companies frequently missed oil zones. Conrad Schlumberger had the idea of running an electrical probe into the drilled borehole to measure resistivity through the formation. This first log taken in the Alsace region of France was a simple hand-plotted graph, but it effectively aided engineers to “view” what was inside the

Since Donald Trump took office as President of the United States, he has been a constant figure in the news. Earlier this month, his administration announced a plan to open U.S. coastal waters to offshore oil drilling. According to the New York Times article, the plan lifts a ban that was put in place by former President Barack Obama and gives energy companies access to billions of acres of the U.S. coastline along the Eastern Seaboard, the Artic, and the Pacific waters off California.

| Legal impacts on oil and natural energy extraction and production are determined at a local level and thus the main issues which arise typically relate to cross-border transactions and the legal issues of transportation (SMI, 2010). International legal issues in the industry are constrained to safety considerations such as decommissioning given the highly hazardous nature of the raw materials and production process. This in part explains the high infrastructure investment costs as Petrobras must ensure the safety of any new exploration and extraction venture.

Exploration drilling is the first step in determining the position of a mine and whether it is a viable business opportunity. Drilling determines the exact positions of ore bodies suitable for mining. This also achieves samples which are tested to find out the quality of the ore body. Drilling is performed within a set area to find the size of the ore body.

For centuries, oil and natural gas have been drilled and mined using conventional means, by digging in oil rich sandstones, conventional rocks. Due to the permeability of these rocks, it is easy for the oil and gas to flow to the surface from well bores and be collected for commercial use. But recently, concerns have been raised regarding the over-exploitation of these resources, as various reports show that with the current level of exploration, these reserves will soon be depleted.

As offshore drilling was a new industry, regulations had to develop at the same time the industry developed. Unfortunately regulations were usually enacted and enforced after accidents had already occurred. Analyzing the development of the offshore oil industry in comparison to the process of regulating its operations will show the international, national, and local processes involved in attempting to balance the economic benefits with the environmental risks involved. An applicable example for showing the relationship between the environment and the economy created by the offshore oil industry is the drilling operations in the Gulf of Mexico.

In 1973, the United States government restricted the export of domestically produced crude oil. At the time, this was largely regarded as a sound decision. Not only was domestic production in a decline, but the global political climate was fundamentally inhospitable. However, in recent years, the oil and gas industry has exploded into a huge upswing, due in no small part to the evolving technologies surrounding hydraulic fracturing and horizontal drilling. Between 2009 and 2013, crude oil production in the United States increased by roughly 2.1 million barrels per day and, according to ICF estimates, is projected to increase another 3.2 million barrels per day through 2020 (ICF International 2014). This has led to a high profile discussion regarding the removal of the export ban which peaked in October of this year when President Barack Obama stood firm against repealing the ban, even threatening to veto the bill completely, despite the House of Representatives voting to pass it. With domestic oil and gas production at an all-time high, continuing with the ban makes little economic sense, and this report will further explain the belief behind why the ban should be repealed and why it would make a positive impact on independent exploration and production companies.

"... an open and attractive oil sector for foreign investment, with the appropriate arrangements to explore new fields."

BP (British Petroleum) is one of the leading companies that are delivering energy products and services to the people around the world. In this report, we studied BP’s risk management plan for preventing oil spill. The main reason for choosing BP and its oil spill preparedness plan is that the oil companies have become increasingly vulnerable to unwillingly cause disasters and BP is one of them. An event that highlighted this vulnerability and subsequently drew attention to the need to investigate, is the BP oil spill in 2010 was one of the worst oil disasters that affected environment adversely. Issues such as these have been a serious concern for the oil companies around the world.

There is almost nothing in this world where there is no risk involved. Risk involved is a major topic of concern in everyday life more than ever before. This report gives an overview about the risks involved in everyday life and especially in the oil and gas industry.

Currently, the conventional approach is to aggressively explore and develop new fields. This has led to a growth in drilling deeper wells and looking to ‘off-shore’ sites for new production of ‘light’ crude. However, as recent events in the Gulf of Mexico demonstrate with the British Petroleum incident and the resulting clean-up costs and loss of credibility, this approach has risks. It