W5- O&G Around the World (Economics)

Question 1

What is OPEC?

Answer 1

Organisation of the Petroleum Exporting Countries

Stabilisation of oil market and accouunt for more than 80% of proven oil reserves (mad up of Iran, S.A etc)

Question 2

What is the GECF?

Answer 2

Gas Exporting Countries Forum (Gas OPEC)

Stabilise energy market - Control 2/3 gas reserves

Question 3

Factors affecting supply

Answer 3

Accessibility
Type and condition of resources
Production capacity
Political climate/policies
Equipment costs

Question 4

Factors affecting demand

Answer 4

Changes in population & GDP
Quality of life
Seasonal variation
Industrialisation

Question 5

How is the supply curve affected by oil price and more efficient operations?

Answer 5

Oil price increase-> producers invest and supply more
Oi price decreases-> operators shut wells & reduce supply
More efficient operations -> shift right as supply more for same price

Question 6

How demand curve affected?

Answer 6

Price for commodity decreases- demand increases but users find alternatives and demand then diminishes

Colder than usual winter -> demand shift right; warmer winter demand shift left

Question 7

Crude charge

Answer 7

Crude oil processed (bpd)

Question 8

Barrel per stream day (bpsd)

Answer 8

Max barrels input when full capacity under optimal conditions

Question 9

Barrel per calendar day

Answer 9

Input can process under normal operating conditions reduced for limitations, i.e. turnovers

Question 10

Throughput

Answer 10

Total input processed

Question 11

Production

Answer 11

bpd of blendstocks manufactured

Question 12

Utilisation

Answer 12

Chage (bpd)/capacity (bpsd)