scholarly journals Accelerating geothermal development with a play-based portfolio approach

2020 ◽  
Vol 99 ◽  
Author(s):  
Jan Diederik van Wees ◽  
Hans Veldkamp ◽  
Logan Brunner ◽  
Mark Vrijlandt ◽  
Sander de Jong ◽  
...  
Keyword(s):  
The Netherlands ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Added Value ◽  
Gas Industry ◽  
New Information ◽  
Geothermal Potential ◽  
Heat Demand ◽  
Exploration Risk ◽  
Portfolio Approach

Abstract Over the past decade in the Netherlands, most operators have only developed a single doublet. The learning effect from these single events is suboptimal, and operators have only been capable of developing doublets in areas with relatively low exploration risk. This ‘stand-alone’ approach can be significantly improved by a collective approach to derisk regions with similar subsurface characteristics. Such a play-based portfolio approach, which is common in the oil and gas industry, can help to accelerate the development of the geothermal industry through unlocking resource potential in areas marked by high upfront geological risk, effectively helping reduce costs for the development. The basis of the methodology is to deploy new information to the play portfolio by trading off with the risk of the first wells, resulting in a strong geological risk reduction. The added value of the portfolio approach is demonstrated for the Netherlands in this paper through a comparison with a ‘stand-alone’ development. In the stand-alone approach, each new project will be equally risky, and therefore relatively unprofitable. In the case of a portfolio approach, all experience about the play is used optimally for derisking. In case of success, subsequent projects will have a higher chance of being successful, due to the experience gained in previous projects. Even if a project fails, this may help in increasing the probability of success for subsequent projects. For plays that are initially considered too risky for the market to start developing, the value of information (VoI) of a play-based portfolio approach will help by derisking the play to such an extent that it becomes attractive for the market to develop, even at high initial risk. It can be demonstrated for several geothermal plays in the Netherlands that by adopting the portfolio approach, the probability of a play being developed becomes higher, the number of successfully developed projects increases and the average profitability of the project will also be higher. Five more advantages are: (1) continuous improvement by integrated project development, (2) cost reduction through synergy, efficiency and standardisation, (3) optimisation of the surface heat demand and infrastructure, (4) the possibility of structural research and development (R&D) and innovation, and (5) financing advantages. The advantages reinforce each other. A preliminary estimate of the geothermal potential of the Netherlands adopting the portfolio approach is between 90 and 275 Petajoules (PJ). For about 350 doublets being developed, producing about 70 PJ, the value of the advantage of the play-based portfolio approach is €2 billion for the three main plays: Rotliegend, Triassic and Jurassic/Cretaceous. The learning effects of synergy, efficiency and standardisation are expected to be significant.

Navigating the Great Australian Bight using system models

2018 ◽  
Vol 58 (2) ◽  
pp. 553
Author(s):  
Elizabeth A. Fulton ◽  
Cathy M. Bulman ◽  
Simon Goldsworthy
Keyword(s):  
Social Interactions ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
System Models ◽  
New Information ◽  
New Knowledge ◽  
System Components ◽  
Great Australian Bight ◽  
Future Management

The expanding blue economy means the oil and gas industry is just one of many activities in marine and coastal ecosystems. The future management of ecosystems such as the Great Australian Bight (GAB) should be based on a sound knowledge of the physical, ecological, economic and social interactions among the human and natural system components. The Great Australian Bight Research Program (GABRP) has generated extensive new knowledge about the GAB system, making it one of the most well understood deep-water Australian ecosystems. It is a complicated system, with novel and newly recognised ecosystem pathways. A set of system models have been developed to help navigate this complexity, to integrate the new information and establish improved understanding of system processes and the implications of any activities in the region – including monitoring and management.

Digitisation will cut energy sector costs globally

2017 ◽  
Keyword(s):  
Artificial Intelligence ◽  
Oil And Gas ◽  
New Technologies ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Added Value ◽  
High Tech ◽  
Gas Industry ◽  
Content Type ◽  
World Economic

Significance While many industries have been transformed by the development of such new digital technologies as data analytics and artificial intelligence, the oil and gas industry has been a laggard. That is starting to change as the industry looks to new technologies to help it become more efficient and productive. The oil price downturn, which has put a premium on cost cutting, has accelerated the move to take up new technologies. The opportunity is significant, with a World Economic Forum report (pdf) from earlier this year claiming that the industry could generate 1 trillion dollars in added value over the next decade by embracing digitisation. Impacts Local communities in oil-producing regions face disruption as digitisation reduces employment and puts a premium on high-tech skills. The oil industry will be a significant new market for tech firms working on artificial intelligence, machine learning and automation. Embracing new technologies could help the oil industry attract younger workers, a key challenge as a wave of older talent retires.

De-escalation strategies for kleptocracy in Nigeria’s oil sector

2020 ◽  
Vol 27 (3) ◽  
pp. 821-834
Author(s):  
Vasudev Das
Keyword(s):  
Oil And Gas ◽  
Qualitative Case Study ◽  
Self Regulation ◽  
Oil And Gas Industry ◽  
Self Control ◽  
Added Value ◽  
Gas Industry ◽  
Content Type ◽  
Study Results

Purpose The purpose of this qualitative case study is to explore strategies for the de-escalation of kleptocracy in Nigeria’s oil and gas industry. Design/methodology/approach The author used a qualitative case study to facilitate the generation of data from eight research participants in semi-structured open-ended interviews. Findings The themes that emerged from analysis of interview transcriptions were high self-control, traditional African oath of office, whistleblowing, stiffer penalties for corrupt officials, education and training, self-regulation and sonic therapeutic intervention. Research limitations/implications Interviewees might withhold information regarding their insights on strategies for de-escalating kleptocracy. That was beyond my control. Practical implications The study results provided leaders with insightful comprehension of anti-kleptocracy policy in the oil and gas industry. Therefore, leaders would benefit and advance their decision-making process on the development and implementation of an anti-kleptocracy strategy to revamp the financial value of the oil and gas industry in Nigeria. Social implications The results of the study have the potential to contribute to positive social change by enlightening government leaders and anti-corruption agencies on strategies to de-escalate kleptocracy in the oil and gas industry. Originality/value The study’s uniqueness enabled filling the gap in financial crime literature as well as an added value to the applied management and decision sciences domain.

An Estimation of Profitability of Investment Projects in The Oil and Gas Industry Using Real Options Theory / Ocena Opłacalności Projektów Inwestycyjnych W Przemyśle Naftowym Z Wykorzystaniem Teorii Opcji Realnych

2012 ◽  
Vol 57 (2) ◽  
pp. 391-401 ◽  
Author(s):  
Piotr Kosowski ◽  
Jerzy Stopa
Keyword(s):  
Real Options ◽  
Oil And Gas ◽  
Petroleum Industry ◽  
Investment Project ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Real Options Theory ◽  
Investment Projects ◽  
New Information ◽  
Options Theory

Abstract Paper discusses issues relating to the valuation of investment efficiency in the oil and gas industry using a real options theory. The example of investment pricing using real options was depicted and it was confronted with the analysis executed with the use of traditional methods. Indicators commonly used to evaluate profitability of investment projects, based on a discounted cash flow method, have a few significant drawbacks, the most meaningful of which is staticity which means that any changes resulting from a decision process during the time of investment cannot be taken into consideration. In accordance with a methodology that is currently used, investment projects are analysed in a way that all the key decisions are made at the beginning and are irreversible. This approach assumes, that all the cash flows are specified and does not let the fact that during the time of investment there may appear new information, which could change its original form. What is also not analysed is the possibility of readjustment, due to staff managment’s decisions, to the current market conditions, by expanding, speeding up/slowing down, abandoning or changing an outline of the undertaking. In result, traditional methods of investment projects valuation may lead to taking wrong decisions, e.g. giving up an owned exploitation licence or untimely liquidation of boreholes, which seem to be unprofitable. Due to all the above-mentioned there appears the necessity of finding some other methods which would let one make real and adequate estimations about investments in a petroleum industry especially when it comes to unconventional resources extraction. One of the methods which has been recently getting more and more approval in a world petroleum economics, is a real options pricing method. A real option is a right (but not an obligation) to make a decision connected with an investment in a specified time or time interval. According to the method a static model of pricing using DCF is no longer used; an investment project is divided into a series of steps and after each one there is a range of possible investment decisions, technical and organizational issues and all the others called ‘real options’. This lets one take many different varieties of modyfiying a strategy while pricing the project. This also makes it possible to react to the changing inner and outer situation and introducing new information while accomplishing the investment project. Owing to those, the decision process is a continuous operation, what is an actual vision of a real investment project management in the petroleum industry.

scholarly journals Innovative technologies in training and education for maintenance team of NPPs

2019 ◽  
Vol 5 ◽  
pp. 21
Author(s):  
Róbert Soós ◽  
Bence Balogh ◽  
Gergely Dobos ◽  
Szabolcs Szávai ◽  
Judit Dudra
Keyword(s):  
Virtual Reality ◽  
Nuclear Power ◽  
Power Plants ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Added Value ◽  
Financial Loss ◽  
Gas Industry ◽  
Psychological Pressure ◽  
Temperature Radiation

Many industries, such as nuclear power plants, chemical industry, oil and gas industry have dangerous working environments and hazardous conditions for employees. Maintenance, inspection and decommissioning activities in these safety-critical areas mean a serious risk, downtime is a significant financial loss. The Virtual Reality Training Platform is reflecting on this shortcoming, by providing the possibility for maintenance workers to be trained and prepared for unexpected scenarios, and to learn complex maintenance protocols without being exposed to unnecessary danger, like high temperature, radiation, etc. Employees can have training for equipment maintenance, dismantling of facilities at closed NPP Units. One of the most significant and unique added value of the immersive virtual reality solution is that the operator can experience lifelike emergencies (detonation, shutdown) under psychological pressure, while all of the physiology indicators can be monitored like eye-tracking. Users can work together anywhere in the world. A huge financial outage in industrial production is the preparation and maintenance downtime, which can be significantly reduced by the Virtual Training platform. This method can increase the accuracy, safety, reliability, and accountability of the maintenance and decommissioning procedures, while operational costs can be reduced as well.

scholarly journals Ensuring safe growth of the geothermal energy sector in the Netherlands by proactively addressing risks and hazards

2020 ◽  
Vol 99 ◽  
Author(s):  
Graciela Jharap ◽  
Laura P. van Leeuwen ◽  
Robert Mout ◽  
Wouter E. van der Zee ◽  
Femke M. Roos ◽  
...  
Keyword(s):  
The Netherlands ◽  
Continuous Improvement ◽  
Geothermal Energy ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Energy Sector ◽  
Gas Industry ◽  
State Supervision ◽  
Exploration And Production ◽  
The Way

Abstract The main objective of this paper is to give an overview of the risks seen in the exploration and production of geothermal energy from the viewpoint of the regulator. The risks are categorised as conventional risks, ultra-deep risks and enhancing factors. These risks are similar to those seen in the oil and gas industry, but the maturity of the geothermal sector in terms of managing such risks is much lower. Another objective of this paper is to discuss how these risks are managed and mitigated by the sector and the supervisor, State Supervision of Mines (SodM). Portfolio operators developing multiple projects, using skilled employees and embracing continuous improvement are seen as the way forward for the sector to grow safely and sustainably. This paper concludes that positive developments have started, but a lot of work still needs to be done to ensure safe growth of the geothermal energy sector.

Deployment of Digital NDT Solutions in the Oil and Gas Industry

2020 ◽  
Vol 78 (7) ◽  
pp. 861-868
Author(s):  
Casper Wassink ◽  
Marc Grenier ◽  
Oliver Roy ◽  
Neil Pearson
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry

What Does Rent Give to Federal Budget (on the Russia's Budget Dependence upon "Oil Dollars")

2004 ◽  
pp. 51-69 ◽  
Author(s):  
E. Sharipova ◽  
I. Tcherkashin
Keyword(s):  
Oil And Gas ◽  
Strong Dependence ◽  
Oil Prices ◽  
Federal Budget ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Tax Legislation ◽  
Russian Economy ◽  
The Government

Federal tax revenues from the main sectors of the Russian economy after the 1998 crisis are examined in the article. Authors present the structure of revenues from these sectors by main taxes for 1999-2003 and prospects for 2004. Emphasis is given to an increasing dependence of budget on revenues from oil and gas industries. The share of proceeds from these sectors has reached 1/3 of total federal revenues. To explain this fact world oil prices dynamics and changes in tax legislation in Russia are considered. Empirical results show strong dependence of budget revenues on oil prices. The analysis of changes in tax legislation in oil and gas industry shows that the government has managed to redistribute resource rent in favor of the state.

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