Study Set 1 Flashcards
What is the standard measurement of crude oil?
Barrels
What are the three main fluids that make up hydrocarbons?
Gas, Oil, and Water
What are the five components that describe the life cycle of an oil and gas E&P company?
exploration, land acquisition, drilling, production, and abandonment
What is the overall objective of the E&P production department?
Delivering maximum production with ultimate optimum recovery of oil and gas reserves at minimum cost
What is the standard measure for gas volume at the wellsite?
MCF
What is a common disposition of natural gas produced?
- Piped and used on another lease operations
- Flared into the atmosphere due to economic marketing conditions
- Sold to third parties or affiliate at contract prices
What is the primary component of dry natural gas?
Methane
What is the primary difference between sour crude and sweet crude?
Sour crude contains sulfur
What factors into the pricing of crude oil and condensate?
- Location
- Current economic conditions
- Physical quality
What is a British Thermal Unit? (BTU)
Amount of heat to raise the temperature of one pound of water one-degree Fahrenheit
What chemical is added to gas before it is delivered for fuel in homes or occupied facilities?
Mercaptan
According to the inorganic theory, why are hydrocarbons found in the subsurface?
They were part of the Earth’s original formation
What are the three distinct and dependent business sectors that comprise the oil and gas value chain?
Upstream, Midstream, and Downstream
What sector of the oil and gas industry is related to your local service station?
Downstream
What is a company called that produce oil from a well, transport the oil to the refinery, and manufactures crude oil into various products?
Integrated
Which oil and gas sector consists primarily of gathering facilities and transmission pipelines?
Midstream
What is an organization called that is owned exclusively by the government?
National Oil Company (NOC)
What is the company called that deals exclusively in oil and gas exploration and production activities?
Independent
What attestations by the company’s external auditors are required by the SEC under the SOX act of 2022?
The Company’s effectiveness of the system of internal control over financial reporting
What are three US EPA regulations that impact the oil industry?
Safe Drinking Water Act
Oil Pollution Act
Migratory Bird Treaty Act
What drilling based fluid has the greatest environmental impact of disposed onsite?
Oil-based mud
What do recordable work-related injuries include?
Death
Days away from work cases
Restricted activity or job transfer
What is the leading cause of serious injuries in the oilfield?
Vehicle accidents
What is the main cause of maritime tanker accidents?
Human error
What is a skimmer?
Huge vacuum cleaner to clean oil floating on top of the water
What are the three main elements to reduce risk to workers and the environment?
Designing safe equipment
Enforcing controls
Wearing protective gear
What items are considered personal protective equipment (PPE)?
Hard Hat
Flame Resistant Clothing
Earplugs
Boots
Where does safety and incident prevention start within an organization?
Executive and senior management
What are two common methods to check for and prevent job site hazards?
Preparing a job safety analysis and inspection checklist
What is the purpose of a blowout preventer?
To prevent uncontrolled release of gas and fluids after pressure control systems have failed
List the categories of oil and gas reserves
Proved Developed
Proved Undeveloped (PUD)
Unproved Probable
Unproved Possible
Describe Ultimately Recoverable Reserves
All petroleum that remains and is expected to be producible including what has not yet been discovered
Oi55.122 provides guidance on whether to expense or defer exploratory well costs when the well’s success is not determinable at the time drilling of the well has been completed. What is a factor not to be used to support the deferral of expensing the drilling costs?
Management is optimistic of increases to commodity prices next year, which will allow for additional drilling in the field
What is an indication of impairment for an undeveloped property?
A dry hole has been drilled on the property and there are no firm plans to continue drilling
Under SFAS 121 what would not be considered an indication of impairment?
Due to a busy hurricane season the production of an offshore field was shut-in for 2 weeks during the summer
