Introduction into Oil and Gas Industry. OIL: Part 1
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Introduction into Oil and Gas Industry OIL: Part 1 Fidan Aliyeva MBA in Oil and Gas Management, GradEI
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Series of presentations on Oil and Gas Industry in order to develop stakeholders' awareness and assist in creating an independent opinion.
Transcript of Introduction into Oil and Gas Industry. OIL: Part 1
Introduction into Oil and Gas IndustryOIL: Part 1
Fidan AliyevaMBA in Oil and Gas Management, GradEI
www.petroleumanalytics.com
Introduction into Oil and Gas Industry
(1) Formation, Characteristics and different types(2) Oil as a trading commodity(3) Why it is a burning issue of a day(4) OPEC(5) Oil Majors/International Oil Companies and
National Oil Companies
Oil FormationOil was formed from the remains of animals and plants that lived
millions of years ago in a marine (water) environment before the dinosaurs. Over the years, the remains were covered by layers of mud. Heat and pressure from these layers helped the remains turn into what we today call crude oil . The word "petroleum" means
"rock oil" or "oil from the earth."
www.petroleumanalytics.com
Introduction into Oil and Gas Industry
Scientific definition Oil and Gas are called Hydrocarbons because they
are compound of atoms of hydrogen and carbon. Depending on the mixture of HC molecules, oil differs in colour, composition, consistency
H
HH
H
www.petroleumanalytics.com
Introduction into Oil and Gas Industry
Introduction into Oil and Gas Industry
Depending on the mixture of hydrocarbon molecules, crude oil varies in colour, composition and consistency. Different oil-producing areas yield significantly different varieties of crude oil. (slide 8)
Introduction into Oil and Gas Industry
Introduction into Oil and Gas Industry
Different types of oilDifferent types of oil By geographical locations
Introduction into Oil and Gas Industry
Source: International Energy Agency, Oil Market Report, 13 Sept. 2011
Price differences of the same type of oil due to geographical areas.
Introduction into Oil and Gas Industry
World Leading Crude Oil Brokers
Source: International Energy Agency, Oil Market Report, 13 Sept. 2011
Introduction into Oil and Gas Industry
The oil-exporting countries - large positive ratio of next oil exports to GDP. The oil importers - this ratio is negative.
Source: IMF, Working Paper/11/194, Oil Shocks in a Global Perspective: Are they Really that Bad?, August 2011
Introduction into Oil and Gas Industry
Source: IMF, Working Paper/11/194, Oil Shocks in a Global Perspective: Are they Really that Bad?, August 2011
Large oil price increases can have more adverse consequences on world economy. There is a non-linear relationship between oil prices and economic outcomes, where large upward price increases have a disproportionately negative impact.
Introduction into Oil and Gas Industry
Source: International Energy Agency, Oil Market Report, 13 Sept. 2011
Introduction into Oil and Gas Industry
Introduction into Oil and Gas Industry
World Oil ReservesBP Statistical Review, June 2011
World proved oil reserves in 2010 were sufficient to meet 46.2 years of global production
Introduction into Oil and Gas Industry
Production vs. ConsumptionBP Statistical Review, June 2011
World Oil ReservesBP Statistical Review, June 2011
Introduction into Oil and Gas Industry
Introduction into Oil and Gas Industry
Organization of Petroleum Exporting Countries
Mission: to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for thoseinvesting in the petroleum industry.
Key Facts: - is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. - today comprises of 12 Member Countries with HQ in Vienna, Austria- more than 80% of world production of the world's proved oil reserves are located in OPEC Member Countries, with the bulk in the Middle East- Due to significant additions to oil reserves in recent years, OPEC's oil reserves currently stand at well above 1,190 billion barrels.
www.opec.org
Introduction into Oil and Gas Industry
Source: International Energy Agency, Oil Market Report, September 2011
Introduction into Oil and Gas Industry
OPEC continues to increase its capacity to ensure that the world economy benefits from secure oil supplies. About 140 projects with an overall estimated cost of $155billion, are being undertaken by OPEC Member Countries, exlc. other energy infrastructure projects: pipelines, export terminals etc.
Source: OPEC web-site http://www.opec.org/opec_web/static_files_project/media/downloads/publications/Whogetswhat2010.pdf
In order to educate stakeholders about the distribution of oil revenues, OPEC provided an illustrated explanation of exactly who gets what from the price paid for each barrel of oil.
Oil Companies
International Oil CompaniesMajors: ExxonMobil, Total, BP, Royal Dutch
Shell
Independent: Oxydental, Nations Energy, Talisman Energy
National Oil CompaniesPetrobras (Brasil), SOCAR, Sonatrach (Algeria), NNPC (Nigeria)
Introduction into Oil and Gas Industry
Introduction into Oil and Gas Industry
Oil Majors
February, 2008Source: http://en.wikipedia.org/wiki/File:Big_Oil.svg
