American Gas Research Articles

Difficulties experienced by Latin American oil and gas companies in the integrated adoption of practices aligned with the UN SDGs

PurposeThis paper aims to understand the difficulties faced by Latin American oil and gas (O&G) companies in adopting integrated practices aligned with the UN Sustainable Development Goals (SDG) Agenda.Design/methodology/approachA Delphi study was conducted with 14 experts with extensive knowledge and experience in the O&G sector to collect opinions and investigate sustainable practices in the Latin American context.FindingsA consensus was reached after two rounds, demonstrating a unified view of sustainability experts on the difficulties faced by O&G companies to adopt practices aligned with the SDGs. The difficulties identified through the Delphi method were allocated into five clusters named: “public sector and governments,” “civil society,” “corporate issues,” “technology and innovation” and “financial aspects.” These clusters were used to discuss the main challenges associated with implementing business practices that recognize the SDGs and their achievement as a synergistic reinforcing system rather than an additive structure.Originality/valueThis study provides further insights into the underexplored subject relating to the challenges experienced by Latin American O&G companies in the implementation of the SDGs, adopting the perspective of academic and industry experts in this field. The findings can help professionals in O&G companies implement sustainable practices, policymakers in debates about futures laws and regulations and academic in future research.

Will the US lead the energy transition? decarbonization policy of American oil companies

The article assesses the chances of the US that recently recovered its former status of a major energy power to become the leader of the energy transition from fossil fuels to the renewable sources of energy. The authors study the key drivers of the oil and gas sector decarbonization within the framework of the fourth energy transition, such as government policy, greening of financial institutions, etc. The article analyzes decarbonization strategies and goals of the main players in the American and European oil and gas markets. The key objectives of the decarbonization process in the US are determined proceeding from the assumption that the country makes a bet on the long-term future of the global oil and gas sector and simultaneously intends to achieve net zero goals by 2050. The authors study methods (such as carbon capture, utilization and storage, direct air capture, broader use of hydrogen, reduction of gas flaring, etc.) and compare results of decarbonization carried out by the US (ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum) and European (Shell, Total, BP, Equinor) majors, as well as two key oil and gas companies in the Middle East: Saudi Aramco and ADNOC. The conclusion is made that currently the US oil and gas companies lag behind their European competitors in the energy transition sphere, and at the same time the main Middle Eastern players that employ similar approaches to reducing their carbon footprint are gradually catching up with them.

Does sustainability improve financial performance? An analysis of Latin American oil and gas firms

The growing concern about environmental, social, and governance (ESG) issues raises questions about the presence of financial incentives that naturally offset —at least partially— the higher operating costs stemming from ESG-related investment policies in the oil and gas sector, which is characterized by its strong environmental impact. Building on Campbell and Shiller's present value decomposition and using an instrumental variables-based methodology to address measurement errors in ESG scores, in this paper we analyze the effects of corporate ESG performance on expected dividend growth and discount rates for oil and gas firms in Latin America (Latam). On the one hand, our results suggest that ESG policies developed by oil and gas firms in Latam are related to lower medium-term discount rates. On the other hand, ESG practices adopted by oil and gas companies are also related to lower future dividend growth. These findings suggest that the lower discount rates resulting from active ESG policies at least partially offset the costs derived from the green transition of the oil and gas sector in Latam, meaning that the efforts made by oil and gas companies to improve their ESG performance, together with public initiatives aimed at covering a portion of the costs derived from corporate ESG policies, can make some unexploitable oil reserves in Latam become viable.

The impact of climate litigation and activism on stock prices: the case of oil and gas majors

The issue of oil and gas companies’ contribution to climate change gained particular prominence on May 26, 2021. A Dutch court ordered Royal Dutch Shell to significantly reduce its greenhouse gas emissions, while shareholder votes at Exxon Mobile and Chevron succeeded in pushing for further emissions reductions. Together, these events signify a sudden increase in climate litigation and climate activism risk for global oil and gas companies. This study assesses investors' perception of these events by investigating oil and gas companies’ stock price reaction. The results show a significant negative impact on the stock prices for European and North American oil and gas firms, while firms located in other jurisdictions record slight gains. Higher environmental, social, and governance scores appear to mitigate the negative impact on European and North American oil and gas companies, primarily driven through better emissions related measures. The results highlight the adverse effect of increased climate litigation and climate activism risk on firm valuations.

Low-cost fixed sensor deployments for leak detection in North American upstream oil and gas: Operational analysis and discussion of a prototypical program

Low-cost fixed sensors are an emerging option to aid in the management and reduction of methane emissions at upstream oil and gas sites. They have been touted as a cost-effective continuous monitoring technology to detect, localize, and quantify fugitive emissions. However, to support emissions management, the efficacy of low-cost fixed sensors must be assessed in the context of the sites, technologies, methods, work practices, action thresholds, and outcomes that constitute a broader program to manage and reduce emissions. Here, we build on technology-focused research and testing by defining a prototypical low-cost fixed sensor program framework and considering the deployment from an operational perspective. We outline potentially large operational cost penalties and risks to industry relative to incumbent programs. Most costs are caused by (i) follow-up callouts, (ii) nontarget emissions, and (iii) maintenance requirements. These represent core areas for improvement. Results highlight a need for careful consideration in regulations, ensuring that alerts protocols are carefully codified and system performance is maintained.

Enhancing gas production through advanced detailed design engineering: a global perspective on industry practices

Enhancing gas production through advanced detailed design engineering has become a pivotal approach in the global energy sector. This paper explores the integration of cutting-edge engineering methodologies to optimize gas production processes, reduce operational inefficiencies, and meet increasing energy demands. The application of detailed design engineering in gas production involves sophisticated modeling, simulation, and analysis of production systems, ensuring enhanced precision, safety, and scalability. By leveraging advanced computational tools, engineers can predict and mitigate potential production bottlenecks, optimize well designs, and implement efficient gas processing techniques. The global perspective on industry practices highlights regional variations in design standards, regulatory frameworks, and technological adoption. For example, North American gas fields utilize integrated digital twins and automation technologies to streamline production, while regions like the Middle East emphasize design optimization in offshore gas extraction. Additionally, the development of sustainable practices, such as carbon capture and storage (CCS) and energy-efficient processing units, is becoming a critical focus for gas producers striving to reduce environmental impact and align with international climate goals. This study also examines the role of collaborative frameworks between engineering teams and production operators in fostering innovation and knowledge transfer, further driving the refinement of detailed design approaches. The future of gas production will depend significantly on advancements in materials science, data analytics, and artificial intelligence, which are expected to revolutionize the design and operation of gas production systems. In conclusion, enhancing gas production through advanced detailed design engineering offers the potential to unlock new efficiencies, improve safety standards, and contribute to global energy security. However, the successful implementation of these practices requires continuous investment in research, technology, and cross-industry collaboration.

The effects of cross-cultural differences on HRM functions: the case of multinational corporations in Kuwaiti community

PurposeWith increasing globalization, the importance of referring to cross-cultural contexts is also amplifying in the contemporary era. The models, framework and dimensions devoted to such situations are increasingly mannered in practice today. With due consideration derivation to the input manner, an organization’s performance is also taken aside for its increasing marginality. The following study aims to examine the American multinational oil and gas company operating in Kuwait's oil sector to evaluate the respect. The branch has a total of 600 employees, which were all included in the data collection phase. Hence, the results derived with cumulative aspects of leadership, power distance and organizational value as their impact on human resource management (HRM) functions.Design/methodology/approachThrough the quantitative approach of a self-adapted questionnaire, 101 responses were collected, and through SPSS Version 22, results were discreet.FindingsThe results reverted with the manual that the cultural dimension of Hofstede, i.e. power distance, did not have an apparent impact on the HRM functions. Whilst leadership and organizational values had their dissolved set of effects on HRM functions of the chosen firm. However, HRM functions were apparent enough to have its impact upon leadership, power distance (PD) and organizational value accumulated. Opening to the opportunities where in the future studies, a greater extent of population as well as variables could be considered for a better impact.Research limitations/implicationsThe Major limitation of the study is related to the number of respondents as the research was conducted solely for the chosen branch of this private oil and gas firm in Kuwait, which makes its results limited and narrowed in the analysis phase. Moreover, the methodology selection did not do justice to the resulting research’s agenda, which was restricted due to the pandemic’s situation. Where with a better and respective methodology approach, better results could be attached.Originality/valueThe rationale of research refers to the gap concerning theoretical aspects within a field of business. As for the resulting study, in a cross-cultural management setting, the relevancy and implication of HRM functions concerning their transparency have not been explored. Globally, in different industries, the, study of similar nature has been conducted but has not examined, the fossil fuel industry particularly, which would be the focal point of this research.

Origins of pressure dependent permeability in unconventional hydrocarbon reservoirs

Unconventional hydrocarbon assets represent a rapidly expanding proportion of North American oil and gas production. Similar to the incipient phase of conventional oil production at the turn of the twentieth century, there are ample opportunities to improve production efficiency. In this work we demonstrate that pressure dependent permeability degradation exhibited by unconventional reservoir materials is due to the mechanical response of a few commonly encountered microstructural constituents. In particular, the mechanical response of unconventional reservoir materials may be conceptualized as the superposed deformation of matrix (or ~ cylindrical/spherical), and compliant (or slit) pores. The former are representative of pores in a granular medium or a cemented sandstone, while the latter represent pores in an aligned clay compact or a microcrack. As a result of this simplicity, we demonstrate that permeability degradation is accounted for through a weighted superposition of conventional permeability models for these pore architectures. This approach permits us to conclude that the most severe pressure dependence is due to imperceptible bedding parallel delamination cracks in the oil bearing argillaceous (clay-rich) mudstones. Finally, we demonstrate that these delaminations tend to populate layers that are enriched with organic carbon. These findings are a basis for improving recovery factors through the development of new completion techniques to exploit, then mitigate pressure dependent permeability in practice.

A Comparative Study of Evidential Verb in Research Papers by Chinese and American Scholars: An Example of Experimental Research Paper on Oil and Gas

Evidentiality refers to the speaker’s attitude towards the source of information and the reliability of the information conveyed and is one of the most important micro features of academic discourse. This study compared how Chinese and American researchers differed in the use of evidential verbs in their texts, the use of evidential verbs in 200 Chinese and American oil and gas experimental research papers is compared in this study using a combination of quantitative and qualitative methodologies based on a comparative corpus. It was found that both Chinese and American students were able to learn the evidential verbs of empirical research and use more appropriate language to describe the course of the experimental research and its results, but Chinese students used less verbs, particularly perceptual, cognitive, and verbal evidential verbs. Chinese scholars struggle to take ownership of discourse and tend to employ negative verbs less frequently and their essays use a more homogeneous vocabulary. These findings highlight some of the writing issues Chinese scholars encounter while writing papers in the English language; this paper analyzes these issues and offers suggestions for academic writing.

Using Business English as a Lingua Franca for Written and Spoken Communication: Challenges Encountered by Thai Human Resources Professionals in An American Multinational Company

Unquestionably, English is a medium for international communication, particularly in multinational companies (MNCs). In this regard, professionals who work in MNCs, including human resources (HR), inevitably encounter challenges in using English in the workplace environment where people are from diverse linguistic and cultural backgrounds. This study attempts to examine how Thai HR professionals perceived the role of business English as the lingua franca (BELF) and how they faced the challenges in using English for workplace communication. This survey study employed a mixed-methods approach for data collection. A questionnaire survey and semi-structured interview were developed to collect the data. Thirty-nine Thai HR professionals at an American oil and gas subsidiary in the Bangkok metropolitan area were purposively selected. Data collected from both instruments were analysed using descriptive statistics and content analysis, respectively. Our data analysis demonstrates that most of the respondents had a positive attitude about using BELF in their organisation. However, it was necessary for them to be aware of their interactants’ diverse linguistic and cultural backgrounds and to effectively use BELF and avoid serious mistakes in their written and spoken communication. In summary, this study reveals that the Thai HR professionals understood the BELF concept and faced more difficulties in spoken communication tasks (e.g., press briefings and business negotiations) in comparison to written tasks. The findings can be beneficial for educators and HR trainers in terms of awareness of intercultural business communication and guidance for developing BELF-oriented courses for university students, graduates and HR professionals. Keywords: Business English as a lingua franca; spoken communication; written communication; communication challenges; Thai HR professionals

SYNERGETIC EFFECT OF A DRAG REDUCER AND PIPELINE INTERNAL COATING ON CAPACITY ENHANCEMENT IN OIL AND GAS PIPELINES: A CASE STUDY

A case study of a 20-inch diameter gas transmission pipeline assesses theoretically how the synergetic use of pipeline internal coating and drag reducing agent increases the flow rate of a pipeline and its impact on the pipe internal friction. The American Gas Association (AGA) equation and Modified Colebrook-White equations were both used to estimate the capacity of the pipeline in its existing state, after internally coating and after injecting a drag reducing agent in the internally coated pipeline. By means of both AGA equations and Modified Colebrook–White equations, it was observed that Internal coating with surface roughness of 0.0045mm can increase the pipeline capacity (flowrate) by up to 22% for gas pipeline systems. Also, the synergetic use of a pipeline internal coating such as polyamide epoxy or solvent free epoxy and a Polyacrylamide drag reducing agent can increase the pipeline capacity (throughput) above 115.53% for GNGC gas pipeline systems. The analysis shows that synergetic use of internal coatings and drag reducers increases the capacity of gas pipelines and is economically justified with a typical payback period of three years.

How Far is Gas from becoming a Global Commodity?

While we can say that there is a global market for crude oil, we cannot say the same for natural gas. There is a strand of literature that argues that, in the last decades, gas markets have become less regional and more global. We use wavelets to test this hypothesis and conclude otherwise: although the European and Japanese gas markets are significantly synchronized, they are much less than the oil markets, which we take as the benchmark. We also show that the North American gas market fluctuations are independent of the other gas markets. Finally, we show that the existing synchronization between gas markets almost vanishes once one filters out the effect of oil price variations, suggesting that it is the global oil market that connects the regional gas markets.

Addressing the UN SDGs in sustainability reports: An analysis of Latin American oil and gas companies

This article aims to establish an overview of the sustainable practices developed by the major oil and gas enterprises in Latin America and analyse how these practices are related to the Sustainable Development Goals (SDGs) 7, 9, 11 and 12. The methodological strategy used was the content analysis of the sustainability reports published by companies in the sector. Considering the ten oil and gas companies with the highest revenue in Latin America, 7 of them published sustainability reports in 2020 (base 2019), and these reports were analysed via content analysis technique. The findings showed that 244 sustainable practices were reported in sustainability reports by these seven companies. These practices were summarised by twenty different keywords (the practice can be represented by more than one keyword) and related with the targets of SDGs 7, 9, 11 and 12. It was found that few practices were related with the following targets: (a) greater access of small-sized companies, especially from developing countries, to financial services (target 9.3), (b) encouragement of companies to use sustainable practices and add sustainability information in their reporting cycle (target 12.6) and (c) the rationalisation of inefficient fossil-fuel subsidies (target 12.c). However, one company stands out amongst its competitors, having practices that, on average, were related with a higher number of targets of SDGs 7, 9, 11 and 12. This research has an exploratory character. The information reported here is of great value in guiding CSR actions of companies in the oil and gas sector and future research in the area to discuss how such companies can contribute to targets 9.3, 12.6, and 12.c.

Energy Situation in Japan, Sanctions, and Sakhalin Projects: Cross-Cutting Issues

In the first half of 2022, Japan joined the G7 countries with tough anti-Russian sanctions. Japan, at the same time, took a unique position concerning the Sakhalin-1 and Sakhalin-2 oil and gas projects, even though the international companies ExxonMobil and Shell decided to withdraw. After Russia’s retaliatory steps, the Japanese side accepted new conditions considering the balance between the logic of the confrontation and the requirements of economic security. This article discusses some of the economic and energy aspects of Japan’s challenge, such as the diversification of energy supplies, importance of liquefied natural gas (LNG), specifics of Sakhalin projects, and competition of Northeast Asian countries in the global energy markets. Despite particular successes in the diversification of energy imports, the overall situation in the Japanese energy and LNG sector remains unstable. Sakhalin supplies account for 7-8 % of Japan’s LNG; however, the proximity of the location and other terms give them much greater importance. The simulation results for replacing Sakhalin LNG with American gas suggest a deterioration in diversification indicators for Japan. Moreover, the redirection of Sakhalin LNG to China will strengthen its competitive position. Consequently, internal and external factors support Japan’s continued involvement in the Sakhalin shelf. Unfortunately, outside the two Sakhalin and one Arctic LNG projects, there are currently no realistic prospects for further energy cooperation between Japan and Russia.

An Intrusion Resistant SCADA Framework Based on Quantum and Post-Quantum Scheme

The rapid emergence of quantum computing threatens current Supervisory Control and Data Acquisition (SCADA) security standards, mainly, American Gas Association (AGA)-12. Therefore, researchers are developing various security schemes based on either quantum or post-quantum algorithms. However, the efficiency of quantum algorithms impacts the security of the post-quantum digital signature scheme. We propose an intrusion resistant algorithm exploiting and applying quantum principles in the post-quantum signature algorithm. We use the Bennett 1992 (B92) protocol, a quantum key distribution scheme, to obtain the cipher, and the practical Stateless Hash-based Signatures (SPHINCS)-256 protocol to obtain a post-quantum signature. However, instead of Chacha-12, a well-known cryptographically secure pseudo-random number generator, we apply a quantum random number generator to obtain a truly random Hash to Obtain Random Subset (HORS) signature with Tree (HORST) secret key used in SPHINCS-256. We have implemented the design in Python with the Quantum Information Toolkit. We have validated the proposed algorithm using the Probabilistic Model Checking for Performance and Reliability Analysis (PRISM) and Scyther tools. Moreover, the National Institute of Standards and Technology (NIST) statistical tests show that the proposed algorithm key pairs have randomness of 98% and RSA and ECDSA are below 96%.

Understanding productivity effects of hydraulic fracturing in unconventional natural gas deposits and implications for adoption in the developing world

AbstractHydraulic fracturing (HF) has transformed the North American oil and gas industry, leading to increased consumer surplus and reduced carbon emissions. While HF may have similar potential for the developing world, adoption has been limited to date, plausibly because of perceptions of potential local costs and the need to develop technical proficiency. We empirically evaluate the incremental contribution of HF in the United States. We find considerable evidence of differences in application and productivity across operating firms and vertical pairings of firms, suggesting intellectual property and learning by doing may both play important roles. At the same time, secrecy regarding the chemical composition of fluids used in HF is a potential deterrent to its application for fear of local costs. Developing countries must accommodate these characteristics if adoption of HF is to help meet energy demands and achieve climate policy goals.

Prospects for the Formation of a Global Natural Gas Market: Price Analysis of European, Asian, American Gas Markets

Research background: Natural gas markets are facing an ongoing process of diffusion of natural gas liquefaction (LNG) technology. High mobility and relative ease of LNG use predetermine a huge potential for globalization of gas markets and the formation of a single price space similar to the oil world market. Purpose of the article: The purpose of the article is determining the degree of gas markets convergence and offering an assessment of the prospects for gas globalization. Methods: The authors conducted a comparative analysis of statistics on historical prices in the gas markets, reviewed the scientific and practice-oriented literature on this topic. The authors developed a brief forecast model based on statistical methods to develop their own assessment of the prospects for the development of a single global gas market. Findings & Value added: The paper contains the most relevant comparative assessments of the three key gas markets (Europe, Asia, USA) and descripts an authors’ assessment of the potential for the emergence of a global gas market. On the one hand, the authors revealed a fairly high correlation between LNG prices worldwide, on the other hand, LNG supplies are not the only form of gas supplies. In addition, regional pricing features lead to the relative independence of the three markets among themselves. Moreover, the current global crisis may slow down the development of global gas market due to restrictions on the profitability of potentially new LNG projects.

Common Determinants of Credit Default Swap Premia in the North American Oil and Gas Industry. A Panel BMA Approach

This study discovered market determinants of credit default swap (CDS) spreads in the North American oil and gas industry. Due to the limited theoretical background on market sources of CDS price fluctuations, we chose to alleviate model uncertainty and possible misspecification issues using Bayesian model averaging. This robust framework allowed us to aggregate results from a vast number of linear panel models estimated over the 2017–2020 period. We identified oil price volatility, major shifts in the OPEC+ supply policy, natural gas prices and industrial metal prices as the most robust determinants of CDS spreads. We show that following the onset of the COVID-19 pandemic, oil prices ceased to be a notably important determinant of credit risk, as factors indirectly related to oil prices, such as global and sectoral uncertainty, financial conditions and the macroeconomic stance became more influential. Additionally, we show that the CDS spreads of shale companies are determined by similar common factors, but they are more sensitive to the OPEC+ decisions on the global supply and are less affected by the domestic activity. Finally, we also prove that our modelling approach may help investors and risk officers to identify robust determinants behind the dynamics of credit risk.

Network connectedness between natural gas markets, uncertainty and stock markets

Abstract This paper explores dynamic information connectedness effects between natural gas markets, uncertainties and stock markets in the North American and European regions for high- and low-frequency bands using the time-frequency connectedness network model. The empirical results suggest that the total return and volatility spillover effects in North America and Europe are mainly generated by the high-frequency band (1–12 weeks), whereas the total spillover effect for the low-frequency band (12 weeks to longer) is relatively weak. Generally, in terms of return connectedness, the North American and European natural gas markets act as information receivers to the system. With regard to volatility connectedness, the North American gas market has an impact on energy market uncertainty and economic policy uncertainty, whereas the European gas market acts as an information receiver from economic policy uncertainty. Finally, our evidence shows that both these regional gas markets are affected to a considerable extent by financial market uncertainty in both the short and long term. These new findings suggest some useful implications for investors and policy makers with various time horizons.

Oil-land: An investigation into inquiry, dialogue, and action

This qualitative research focuses on a curriculum, Oil-land, designed and implemented at a public high school in the United States. The premise of the course was to explore complexities associated with the American oil and gas industry using elements of inquiry-based learning, shared dialogue, and with an expectation to take action. The research examines students enrolled in the course and their experiences in how exploring these issues using democratic ideals challenged and changed their thinking. Themes emerging from the data include how students’ experiences and reflections helped them transcend binary thinking often found with complicated subject; how students were able to not only analyze issues associated with oil and gas, but humanize them as well; and how students were foster agency through their lived experiences in this course study.