BSM2519 Oil and Gas Management- Global Energy Consumption

1: The following question concerns the roles of the various organisations involved in the oil & gas industry.
Consider the roles and activities of a typical Operator/Duty holder, Investor and Equipment Vendor in the context of an offshore platform.

a. Identify the areas where the parties objectives are aligned
b. Identify areas of potential conflicts and how they might be overcome.

 

2: The following question concerns future oil and gas sources, social responsibility and climate change issues. Identify and discuss the factors driving the continued annual growth in global energy consumption.

Answers

1a. Identify the areas where the parties’ objectives are aligned

Obstinate Misconduct of the Investor, Duty holder, and Equipment Vendor or they disappointment to maintain or obtain any insurance that it is needed to maintain or obtain. Apart  from where they used reasonable activities to maintain or obtain some such insurance which is not done notified promptly to the participating of the participant proposing that’s will not provide to be liable or responsible to the operator for any loss of momentum(Tanaka, Okada and Ichikawa, 2017). They shall not be responsible or liable for, and every party shall increase interest, responsibility, regardless of negligence on the portion to compensate. The duty of the operation duty team is to ensure safety, maintenance and management of supplying important assets. Not only that, they also supply checked and tested processes and procedures. They take care of the performances which are to be the direct supplies of manpower which include the operation and management of the prepared assets. All these activities generally produce in the maintenance of a partnership. It actually helps the clients to play the role of an operator who look after the licence. They also supply time and resources. It has been observed that there are some responsibilities which are to be performed by the duty holders. These duties are actually the services of wells and pipelines.

Petrofac takes the responsibilities of designing, building and maintaining gas and oil facilities which are to be delivered through managing ranges of different and new commercial models. They transform the designated amount assets of British Petroleum throughout the oil and gas cycle of life. The responsibilities of Petrofac and British Petroleum are attached in those areas where the exploration of gas and oil production. The activities are capable of smooth hassle free preparation of the upcoming phases of decommissioning of the British Petroleum.

The operator or other associated operator delivers materials and facilities from their own resources which it approximations shall charges additional than the operator shall pursue the support of the committee period of joint operating to delivering of service and material. To the point that the Investor, Duty holder, and Equipment Vendor or any associated operator does not deliver service or material from their own resources (overview of the Brazilian oil and gas industry, 2009). The working relationship of the British Petroleum and the Petrofac is very strong. They are both involved in this evolvement. This is because the objectives of the business of the petroleum are to be aligned with the working of the provider of the service. They are expert in having strong focus on the procedures of delivery and recruitment of localized resources and helping in the engagement of it in a chain of supply(Key issues related to attracting international oil companies to Israel, 2017).

b. Identify areas of potential conflicts and how they might be overcome.

Resolving environmental arguments often needs choosing among various options to form a resolution and several proposed scenarios that fulfill the conditions of multiple benefits There is considerable increase in the demand of energy in the world which is attributable from the companies for the economic development of the cooperation. The reason behind this is the rate at which the population is increasing and the strong growth in the economic status of the present population. The other reason is also the increase in the energy usage. The total energy usage of the directly includes the changes of the economic growth of the country. The demand for energy is increasing day by day so to cope with this situation there has to be some concrete steps towards it(Brody et al., 2006).

There are some conflicts which are potentially very much effective. These conflicts are experienced by the parties which are in the offshore side of the oil drilling site. They are related to the regulations of the environmental laws. The British Petroleum, in a strict manner keeps awareness of the regulations of the environment. The partners who are concerned with the offshore side platform always opt for the investment for the undertaking of the activities for their clients. This has been seen to be characterised in an irreversible manner with a distinct cost effect. This kind of activities can cause conflict between the partners. This causes greater competition and poses a threat in the efficient use of the resources.

Making a decision on multiple criteria is mainly beneficial when it is useful for spatial problem or disagreements including the pursuit for the best appropriate location for a specific use, reaching from pipeline and power line directions to land usages on separate parcels.. The structure begins by dimensions showing the value of several groups of interest, criteria of selecting decision and operational defining, quantifiable qualities(Dagg et al., 2011). Next, Pareto-optimal substitutes that best occur all party's interests are examined are examined. Through Making a decision of multiple criteria has usually been using applications which are land based, this systematic approach has newly been useful to marine and coastal areas. For example, the investigation has been completed on marine protection, coastal development, and coral reefs to management options assets such as ecological, economic, and social criteria, development of marine assets and areas of coastal evaluating for future development of land. Though all of this investigation apply making a decision of multiple criteria marine and coastal issues, little erudite work has been completed to date which mentions how this tool may be used to assess the certain site's suitability for gas and oil development. Most research about gas and oil development in its place focuses on investigative socio-economic or ecological effects produced by a particular facility. Similarly, many agencies of jurisdiction have overlapped the several of regulation and requirement permit in state water of Texas, it is also seen that more analysis on a site is sustained in leasing the coastal by both the companies which are the desire to take a lease by the reviewing agency of the application lease of personal communication. The companies concerned with this production of oil and gas face many issues which may arise because of the facilities of the production. Petrofac has taken the responsibility of the entrustment of the task so that they can oversee the proper development of gas and oil sector which are usually under the British Petroleum. There are many reasons for the conflict between them. There are many questions in the way how both the companies are effective in their work and duties towards the welfare of the individual companies. There can also be conflicts if the two companies are not being able to accomplish their targets in a due time.

2. The following question concerns future oil and gas sources, social responsibility and climate change issues. 

Ingesting of energy from every sources upsurge in this case study. Worries about the security of energy, effects of emissions fossil fuel on the atmosphere, and continued high world prices of oil in the huge support extended use of renewable non-fossil nuclear power and energy sources. In addition to natural gas that is the minimum carbon rigorous fossil fuel. Through policies of Government and incentives encourage the using sources of non-fossil energy. In several countries, the world faster-developing energy sources is renewable energy, at 2.5 %/year average rates, while the energy of nuclear use extends by 2.2%year (International Energy Outlook, 2016). Fossil fuel goes on to provide the maximum energy of the world. In this case study natural gas, coal and liquid fuel explanation for 75% energy consumption from total energy of the world.  Other liquid fuel and petroleum are the largest energy sources of the world. While their part of the total energy of world marketed consumption decreased from 32% in the year of 2011 to 29% in 2030. 

There are many issues which have been uprooted in the past years regarding the consumption of energy. These include the detailed version or the detailed information regarding the consumption of the energy. It has to be made clear about the pet capita usage of energy consumption with the rapid increase of the population involved in that sector.

Around the world, the maximum of the growing thin liquid fuels ingesting happens in the industrial sectors and transportation. With a slight increase in the profitable sector and reductions in the domestic and the sectors of electric power(Beretta, 2017). Consumption of oils rises by 1.0% /rear in the sector of transportation and by 0.9%/year in the sector of industry around the world. In this study case total natural gas consumption rises by 1.8%/year on an average, from 119 TCF in 2011 to 132 TCF in 2019. Increasing natural gas delivery, mainly from shale creations in Canada and the United States and finally elsewhere, help to deliver in global markets.  One day, improvements in the horizontal drilling application and technology of hydraulic fracturing which have subsidized to the quick increase in the production of U.S natural gas, are useful in other portions of the world, with the recently available resources natural gas supporting worldwide progress in consumption of natural gas.

References

Beretta, G. (2017). World Energy Consumption and Resources: An Outlook for the Rest of the Century. Dipartimento di Ingegneria Meccanica. [online] Available at: https://www.exergoecology.com/Members/gianpaoloberetta/BerettaIJETM.pdf [Accessed 29 Apr. 2017].

Brody, S., Grover, H., Bernhardt, S., Tang, Z. and Whitaker, B. (2006). Identifying Potential Conflict Associated with Oil and Gas Exploration in Texas State Coastal Waters: A Multi-criteria Spatial Analysis. Community and Regional Planning Program. [online] Available at: https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1002&context=arch_crp_facultyschol [Accessed 29 Apr. 2017].

Dagg, J., Holroyd, P., Lemphers, N., Lucas, R. and Thibault, B. (2011). Comparing the Offshore Drilling Regulatory Regimes of the Canadian Arctic, the U.S., the U.K., Greenland and Norway. [online] Available at: https://www.pembina.org/reports/comparing-offshore-oil-and-gas-regulations-final.pdf [Accessed 29 Apr. 2017].

International Energy Outlook. (2016). US energy Information Administration. [online] Available at: https://www.eia.gov/outlooks/ieo/world.cfm [Accessed 29 Apr. 2017].

Key issues related to attracting international oil companies to Israel. (2017). SUND Energy. [online] Available at: https://energy.gov.il/Subjects/NG/Documents/Expert/SundEnergyOnMidstreamConsiderations.pdf [Accessed 29 Apr. 2017].

Overwiew of the Brazilian Oil and Gas Industry. (2009). Report – Offshore Brazil. [online] Available at: https://www.offshorecenter.dk/filer/files/Project/Internationalisering/OCD%20report%20Brazil.pdf [Accessed 29 Apr. 2017].

Safe and Sustainable Offshore Operations. (2011). Prepared by the Offshore Operations Subgroup of the Operations & Environment Task Group. [online] Available at: https://www.npc.org/Prudent_Development-Topic_Papers/2-7_Safe_and_Sustainable_Offshore_Operations_Paper.pdf [Accessed 29 Apr. 2017].

Tanaka, S., Okada, Y. and Ichikawa, Y. (2017). Offshore Drilling and Production Equipment. Offshore Drilling and Production Equipment. [online] Available at: https://www.offshorecenter.dk/log/bibliotek/E6-37-06-04%5B1%5D.pdf [Accessed 29 Apr. 2017].