Universidad de oriente

Núcleo de Monagas
Escuela de Ingeniería y Ciencias Aplicadas
Departamento de Ingeniería de Petróleo
Inglés instrumental III

4th
evaluati
on
8th unit
Profesora: Integrantes:
Daisy Calzadilla Bryan Sánchez
Francisco Cabello
Winter Pardo
The natural gas trading process is carried out through a series of necessary steps so that
consumers (industrial or residential) can obtain said hydrocarbon.

It is necessary to study the supply and demand of gas in order to be able to control it.

The gas business starts from the field where it is produced and moves to the consumer.

In countries like the USA, gas is rationalized as much as possible since the gas pipeline
companies are some way regulated by the government. Producers can sell it directly to
companies that are responsible for marketing it or to large-scale buyers. Users who
consume the gas are divided into two: end users within the system and users outside the
system.

System, being the first ones the ones that physically receive the natural gas from a local
distribution, and the latter that are connected to interstate pipelines. According the needs
(in quantity) of consumers, can be distributed by marketers to take care of the distribution
of this type.

Residential and commercial buyers typically buy their gas from a utility company local
distribution.

When we talk about the price of oil, we always refer to the price per barrel, which is
equivalent to 159 liters (42 US gallons) and is always expressed in US dollars.

BASKET O.P.E.P

Set of benchmark crude oils from member countries and price is an average

arithmetic between them. The one from Venezuela is Tía Juana Light of 31.9 °API.

OPEC sets its oil policy decisions with its eyes fixed on the so-called OPEC basket (OPEC
basket), an arithmetic mean of twelve varieties of crude oil: Saharan Blend (Algeria);
bonnie Light (Nigeria), Arab Light (Saudi Arabia); Murban (United Arab Emirates), Tia
Juana Light (Venezuela), Kuwait Blend (Kuwait), Basrah Ligth (Iraq), Girassol (Angola), Es
Sidra (Libya), Marine

(Qatar), Irabia Heavy (Iran) and Oriente (Ecuador re-entered in 2007). Since the OPEC
basket is composed of a majority of medium-low quality crude oils, it is usually listed with a
strong discount compared to high-quality crudes. Against Brent, it usually trades around
two barrels below and against West Texas Intermediate, its discount ranges between four
and five Dollars.

West Texas Intermediate (WTI): is the reference oil for the United States market, and It is
listed on the New York Mercantile Exchange (Nymex), in New York. It is a crude of very
high quality, it is light (39.6 degrees API) and sweet (its sulfur content is only 0.24%).
Thus, It usually trades between two and four dollars above Brent. Its futures contracts are
listed on the Nymex for 21 years and have the highest level of liquidity and contracting of
all world crudes. Upon expiration of the contract, physical delivery or compensation may
be required. in metalic. The delivery point is located in Cushing, a small town in Oklahoma
(United States), where there is a nerve center of the oil pipeline network American.
Although the real production of this crude reaches only 365,000 barrels (the 0.4% of the
world pumping), around 150 million are exchanged daily on the Nymex barrels (nearly
twice the world's oil consumption). WTI has a better quality than Brent.

Brent: Brent is a type of oil that is extracted mainly from the North Sea and is a
combination of crude oil from 19 different oil exploitation fields in that area. mark the
reference in European markets. It has approximately 0.37% sulfur, which catalogs it as
sweet oil, it is light since its API gravity is 38.3°. It is ideal for the production of gasoline
and intermediate distillates.

Dubai: it is the reference crude for heavy and sulfurous oil in Asia, and it is referenced,
other crudes from the area that are not listed on the market. The Dubai is a type of oil low
quality; It is heavy with 31 API degrees and with a high sulfur content of 2.04%, which
catalogs it like sour, in recent years, its importance has grown along with crude oil imports.
of emerging Asian economies, especially China. Although the production of this crude has
fallen significantly (around 200,000 barrels a day are now exported since the Gulf of Fateh
terminus).

The necessary costs to be able to carry out oil exploration work will depend on the place
and the necessary equipment to be used. In general, the highest costs are drilling, and the
other expenses are fuel, forklift equipment, pumps, among others, contingency costs, and
many others. Usually these costs are calculated by percentage.

Here we can clearly see according to the graph in which the light blue column shows the
demand in the year 2035 while the dark blue column shows the demand in 2010. It can be
seen that the highest demand is that of diesel and gas oil that is foreseen which will
increase to 37 million barrels per day in the year 2035, thus considering it a fairly steep
increase. Gasoline follows with an increase of 27 million barrels. These products are also
correlated, due to the fact that there is an increase in land transport throughout the world.
The other products are around 10 million barrels per day. We also have ethane and LPG
around 9 million in 2010 and a slight increase to 11 million in 2035, this means that in
some years these products will not drop drastically but neither will their costs or production
increase exponentially. The same will happen with gasoline, which had a production of 6
million barrels per day and increased to 9 million in 2035, obtaining a similar result to
ethane and LPG.

Kerosene had a production of 7 million in 2010 while in 2035 a slight increase of 8 million
is expected. The only area that will decline is said to be residual fuel which is believed to
drop from 9 million barrels per day to 7 million barrels per day.
*How deep do E&P companies drill?

Now it is a trend to drill in deeper waters, it is said that exploration and production
companies now drill to a depth of 6,000 feet, this in order to find the last remaining pockets
of oil.

*Why
are
there so
many
mergers,

acquisitions and joint ventures?

Due to the aforementioned, it is now a trend to drill in deeper waters due to the good
results that these give us. A spectacular increase has been seen, companies come
together in partnership with the aim of growing together in a very difficult economic
environment.

* Where are most of the world's natural gas reserves located?

China has and will continue to have a high ranking in terms of oil imports. But in reality,
the one who has the world's largest natural gas reserves is Russia.
 *One of the reasons for the success of shale gas is the new technology, but there is
another reason, what is it?

The new technology encompasses the practice of hydraulic fracturing and horizontal
drilling, as well as the increased cost of conventional drilling.

We have a particular case which is the case of production in Alaska starting from the year
2008 to the year 2035.

We started in 2008 to 2009 with a production of 0.7, in 2010 it can be seen that it dropped
to 0.6, then in the course of 2010 to 2018 it plummeted from 0.6 to 0.46, after 2018 to
2022 a slight increase to 0.5. Later, production plummets again to 0.38 in 2030. That
same year it rises to 0.41, remaining until 2032. Then it drops again in 2035 to 0.4.

Innovations in the oil industry, they are being given to the surface, due to their price
collapse in 2020 caused by COVID-19. 
Many companies in the world, whether Asian, European, Latin American, new alternatives
were explored in this area, for the extraction and storage of crude oil, measures were
taken to care for the environment, plans with the use of clean and renewable energy, for

efficiency in the oil field, giving way to technological intervention, technological use can
allow companies in the short term to generate important actions to optimize technical and
financial resources, improve the conditions of the oil and gas business. This added to the
strong wave of environmental protection that has been presented, a safe way to improve
cleanliness in operating and production conditions in the hydrocarbon context. 
In recent years, advances in technology have helped the hydrocarbon industry, whether it
be in, increase world reserves to levels that could have been unthinkable years ago.Reach
previously inaccessible places, thus enabling drilling and production in harsh
environments, remote and challenging locations. Improve recovery rates by extending the
life of existing oil fields. Reduce the environmental impact from industries. 
Science, technology and innovation are the key to the continued success of the oil and gas
industry. With innovation, technology can still help further expand oil’s role as the world’s
cheapest and most conventional source of energy. But technology has to be harnessed to
protect and preserve the environment.