Domestic Oil Production Research Articles

Main directions in the development of Russia’s oil sector in the first half of the XXI century

This paper discusses the most important aspects of the development of the oil and gas industry in Russia. To replace declining oil production in Russia, we need to change the obsolete paradigm of the development of the domestic resource base. In the twenty-first century, the priority tasks in the search for oil deposits should be the Russian Arctic shelves and immature onshore provinces as well as unique unconventional oil accumulations (Bazhenov, Domanik, Khadum, Kuonamka Formations, etc.). In addition, special focus should be placed on the exploration of small and smallest oil and gas fields, which will be developed with the collaboration of small- and medium-sized oil businesses to ensure up to 20% of domestic oil production. The shift from extensive to intensive development of Russias oil and gas sector will require the prioritizing of technological tasks.

An Investigative Analysis on Prediction of Crude Oil Price in the Philippines using Artificial Neural Network

Objective: The Crude Oil industry plays a substantial role in the Philippine economy. The researchers intended to compare models of NARX Neural Network and Multiple Linear Regression through the forecast of the Crude Oil price in the Philippines (y) and prediction of the values from October 2018 to December 2023. Methods/Statistical Analysis: The researchers observed the behaviour of the factors that impact the Crude Oil price in the Philippines (y) and with the application of Multiple Linear Regression (MLR), concluded that among the factors, the substantial predictors are Inflation Rate (x2 ), Consumption of Crude Oil (x5), Import of Crude Oil (x7) and Export of Crude Oil (x8) while – Exchange rate (x1), Consumer price index (x3), Domestic interest rate (x4) and Production of Crude Oil (x6) are not. Also, NARX Neural Network was used to predict the Crude Oil prices in the Philippines from October 2018 to December 2023. Findings: Through using the NARX Neural Network, researchers were able to come up with the predicted Crude Oil prices in the Philippines and concluded that their behaviour fluctuates. Improvement: Novelty of work is NARX Neural Network which is the best-fitted model in predicting the Crude Oil price in the Philippines. Thus, predicted values are highly precise. Keywords: Artificial Neural Network, Crude Oil Price in the Philippines, Forecasting Accuracy, Multiple Linear -Regression, NARX Neural Network

Introduction to this special section: Exploration geophysics in China

China ranks second and third in global oil and natural gas consumption, and fifth and sixth in global oil and natural gas production, respectively ( U.S. EIA, 2018 ). In the past 25 years, China's oil consumption has increased 3.5 times, and natural gas consumption is rising rapidly as well. China is increasing its investment in the petroleum industry, with a goal of significantly expanding domestic oil and gas production. Complex geology, rough surface conditions, and the need to explore deep targets, unconventional resources, and offshore reservoirs pose great challenges to geophysical exploration. Geophysical technologies in China thus have advanced significantly in data acquisition, processing, and interpretation. To demonstrate the development and applications of geophysical technologies in the exploration, development, and production of oil and gas resources, we invited academic and industry experts to present recent studies on exploration geophysics in China.

An economic analysis of China’s domestic crude oil supply policies

China’s domestic oil production has lagged the growth in domestic oil consumption since the beginning of the 21st century, leading to a growing reliance on imports. In response, the Chinese governm...

ENGINEERING AND ECONOMICS OF THE HAZARDOUS WASTES IN COLOMBIA: THE NEED FOR A CIRCULAR ECONOMY MODEL

This document collects and organizes data on not only the generation and current situation of hazardous wastes from Colombia, but also in a Latin American and global context. These materials were studied regarding the current economic model, regulations and implications in society. In addition, the numbers are presented from different reports from waste generating companies and, more importantly, from the data officers of the National Institute of Hydrology, Meteorology and Environmental Studies (IDEAM). We also analyzed the activities that contribute most to these wastes and their relationship with various aspects, such as gross domestic product and Oil production in different regions of the country. Therefore, the main objective of this project is to analyze the state of hazardous waste in Colombia in quantitative form, in order to begin to give real solutions towards the use, research and commercialization of derivative products that help reduce their negative effect on the environment.

Petroleum Fund Pada Pemerintahan Lokal (Study Kasus Inovasi Kebijakan “Dana Abadi Migas” di Bojonegoro)

The Bojonegoro District Government took the initiative to establish the Bojonegoro Petroleum and Natural Gas (Oil and Gas) Endowment Fund. The establishment of this Oil and Gas Endowment Fund aims to ensure the existence of a saving fund for future generations when oil and gas and gas in the region has run out. This idea is in line with the fact that in the long term Bojonegoro will contribute significantly to domestic oil and gas production and also the fact that Bojonegoro has succeeded in alleviating poverty, in one area that was once considered the poorest district in Java. The establishment of the Oil and Gas Endowment Fund is also based on consideration of avoiding the curse of natural resources. Reflecting on the experience of regions rich in natural resources, including oil and gas resources, where the level of human welfare and development is lower than in areas of poor natural resources. The level of social conflict is quite high, environmental damage is quite severe, Dutch desiase, excessive spending (over spending), corruption thrives and more.

Estimating the Impact of Energy Price Reform on Saudi Arabian Intergenerational Welfare using the MEGIR-SA Model

This paper investigates the intergenerational welfare impact of raising administered retail energy prices in Saudi Arabia, an example of an oil-exporting country with a fast growing population. To achieve this, we develop a dynamic model with overlapping generations (called MEGIR-SA), which we believe is the first empirical application of its type to be developed for an oil-exporting country. The model is used to analyze the effects of the increase in some Saudi administered energy prices implemented at the end of December 2015. In particular, the model analyzes how these price increases might affect the welfare of Saudis through a direct increase in energy expenditures, an indirect rise in Saudi public income stemming from a lower domestic demand for oil that fosters oil exports at a given level of domestic oil production, and a direct increase of the turnover of the energy sector. The two latter effects can be redistributed by the Saudi public authorities to private agents through higher current public spending and/or public investment. The analysis suggests that the increase in end-user energy prices results in a net overall favorable effect on the intertemporal welfare of all households. This mirrors the impact on the income of private agents of the surplus in public oil income associated with lower domestic consumption of oil products and recycled to private agents. Moreover, it is shown that the additional oil income associated with the increase in domestic energy prices tends to be relatively more beneficial to future generations if it is recycled through public investment. This is reinforced if the future price of oil remains relatively low. In a possible future situation of declining oil prices and domestic production, a policy that would help meet the Saudi Arabian objectives may consist of gradually increasing the fraction of the additional oil income that is recycled through public capital spending.

Introduction to this special section: India

India is currently the third-largest global consumer of petroleum products after the United States and China. The country produces approximately 720,000 barrels of crude oil and 3.16 billion ft3 of gas per day and imports more than 80% of its oil and 50% of its gas needs. This large discrepancy between domestic supply and consumption has been rising rapidly of late. With an economy growing at 6%–8% per year, India's energy demand growth over the next couple of decades is forecast to be among the highest in the world. To mitigate the heavy dependence on imported energy, India has stepped up efforts in recent years to increase domestic production of oil and gas.

Simulation Analysis of Critical Contact Load of Buckling Rod in Tubing String

Sucker rod pumping system is the main equipment of domestic mechanical oil production. The eccentric wear of the rod is the main factor that affects the optimal design of the rod pump system and the reasonable evaluation of pump detection period. Therefore, considering the effect of rod string buckling in tubing, a simulation method for the critical contact load of buckling rod string in tubing is established. In the detail, with double coordinate system method, and the finite element analysis dynamic model of sucker rod string is established. Using ANSYS software, a simulation method for critical contact load of rod string buckling in tubing is established. The simulation results show that the pipe contact stress is affected by the rod string diameter. The maximum stress increases with decreasing the diameter of rod string. The maximum stress of rod string increases with increasing the polished rod load. The effect of polished rod load and rod diameter on buckling stress is considered comprehensively, and the optimum design area of rod string is given. The simulation results have important theoretical and practical for optimal design of sucker rod pumping system and reasonable evaluation of oil well pump testing period.

Increasing Onshore Oil Production

Few data currently exist which are focused on type and severity of onshore oil extraction-related injuries. The purpose of this study was to evaluate injury patterns among onshore oil field operations. A retrospective review was conducted of all trauma patients aged 18 and older with an onshore oil field-related injury admitted to an American College of Surgeons-verified level 1 trauma center between January 1, 2003 and June 30, 2012. Data collected included demographics, injury severity and details, hospital outcomes, and disposition. A total of 66 patients met inclusion criteria. All patients were male, of which the majority were Caucasian (81.8%, n = 54) with an average age of 36.5 ± 11.8 years, injury severity score of 9.4 ± 8.9, and Glasgow Coma Scale score of 13.8 ± 3.4. Extremity injuries were the most common (43.9%, n = 29), and most were the result of being struck by an object (40.9%, n = 27). Approximately one-third of patients (34.8%, n = 23) were admitted to the intensive care unit. Nine patients (13.6%) required mechanical ventilation while 27 (40.9%) underwent operative treatment. The average hospital length of stay was 5.8 ± 16.6 days, and most patients (78.8%, n = 52) were discharged home. Four patients suffered permanent disabilities, and there were two deaths. Increased domestic onshore oil production inevitably will result in higher numbers of oil field-related traumas. By focusing on employees who are at the greatest risk for injuries and by targeting the main causes of injuries, training programs can lead to a decrease in injury incidence.

How China Could Become a Net Exporter of Oil & Gas: Lessons Learned from International Tight Oil Development

Even with very aggressive growth assumptions for renewables, the role for oil and gas will grow, both in absolute terms and as a share of China’s total energy mix. And yet China’s domestic production of oil and gas continues to fall short and China’s need for expensive, foreign imports will only get worse. Meanwhile, the United States – once the world’s largest importer of oil – has become the world’s largest oil producer, with only one-half as many drilling rigs as China. The implications for China are profound. China has an enormous resource base – if China could apply the lessons learned from international development of tight oil and gas, and replicate the US success, it would reap tremendous benefits in terms of energy security, international trade, energy costs, and domestic industrial and economic development.

THE IMPACTS OF AFTA-COMMON EFFECTIVE PREFERENTIAL TARIFFS ON THE TRADE DIVERSION AND TRADE CREATION OF SYNTHETIC RUBBER AND FACTICE FROM OIL IN INDONESIA

Rubber and its products are one of the exported commodities listed in Indonesia’s ten primary exported commodities (Ministry of Trade 2015). Different from other rubber products, the impor of synthetic rubber and factice from oil have increased significantly since the establishment of the AFTA-CEPT with approximately 7 thousand registered products in the Inclusion List (IL) in 2002. This study aimed to analyze the competitiveness of synthetic rubber and factice krom oil among the members of AFTA countries and analyze the impacts of trade creation and Trade diversion on the implementation of the CEPT-AFTA on synthetic rubber and factice oil krom Indonesia, particularly in the 11 countries of origin of imports during the period from 2001 to 2013 by using a gravity model, which was analyzed using static data panel. Based on the results of RCA (Revealed Comparative Advantage), the competitiveness of synthetic rubber and factice oil from Indonesia is very low among four ASEAN countries, while Thailand is the top exporting countries in ASEAN region. The results of the panel data analysis showing variables which have positive influence are Indonesia’s real GDP and real GDP of the country of origin of imports, while variables with negative effect are economic distance and Indonesia’s real exchange rate compared to the country of origin of imports. The implementation of AFTA-CEPT brought against Trade diversion and creation of synthetic rubber and factice oil from Indonesia will have impacts on the existence of trade creation because part of the domestic production of synthetic rubber Ana factice oil from Indonesia will be replaced with imports from member countries and there is on trade diversion.

Energy Supply and Decarbonisation Beyond Brexit: Politics and Policy

Energy Supply and Decarbonisation Beyond Brexit: Politics and Policy

Linking Geostatistical Methods: Co-Kriging – Principal Component Analysis (PCA); with Integrated Well Data and Seismic Cross Sections for Improved Hydrocarbon Prospecting (Case Study: Field X)

In this era of globalization, the demand for energy is rising in tandem with social and economic development throughout the world. Current hydrocarbon demand is much greater than domestic crude oil and natural gas production. In order to bridge the gap between energy supply and demand, it is imperative to accelerate exploration activities and develop new effective and efficient techniques for discovering hydrocarbons. Therefore, this study presents a new method for integrating seismic inversion data and well data using geostatistical principles that allow for the high level of processing and interpretation expected nowadays. The main part of this paper will concern the preparation and processing of the input data, with the aim of constructing a map of hydrocarbon-potency distribution in a certain horizon. It will make use of principal component analysis (PCA) and the co-kriging method. In the case study of Field X, we analyze a single new dataset by applying PCA to every existing well that contains multivariate rock-physics data. The interpretation that can be extracted from the output gives us information about the hydrocarbon presence in a particular depth range. We use that output as our primary dataset from which our research map is constructed by applying the co-kriging method. We also rely on an acoustic impedance dataset that is available for a certain horizon to fulfill the co-kriging interpolation requirement. All of the acoustic impedance data and output data that result from the application of PCA in a particular horizon give strong correlation factors. Our resulting final map is also validated with information from proven hydrocarbon discoveries. It is demonstrated that the map gives accurate information suggesting the location of hydrocarbon potency, which will need some detailed follow-up work to enhance the distribution probabilities. This method can be considered for hydrocarbon prediction in any area of sparse well control.

Стратегия развития эфиромасличной отрасли Республики Крым

Рассмотрены вопросы формирования и реализации стратегии развития агропромышленного комплекса Республики Крым, к которой относится и эфиромасличная отрасль. Представлен краткий обзор развития эфиромасличной отрасли Республики Крым за период 1990 – 2017 гг. Сформулированы основные аспекты стратегии развития эфиромасличной отрасли. Исследованы проблемы стоящие перед отраслью. Рассмотрена «Стратегия социально-экономического развития Республики Крым до 2030 года», в которой определены основные направления по развитию эфиромасличной отрасли. Автором статьи предложены мероприятия по возрождению отрасли: совершенствование нормативно-законодательной базы, эффективная и действенная государственная поддержка, создание и развитие селекционно-питомниководческих центров, модернизация материально-технической базы, развитие научной базы и подготовка высококвалифицированных специалистов. Реализация данных мероприятий даст возможность увеличить доход населения за счет производства эфиромасличной продукции, создать дополнительные рабочие места, повысить конкурентоспособность отечественной эфиромасличной продукции как на внутреннем, так и на внешнем рынке, увеличить доходы товаропроизводителей, укрепить их финансовое состояние.

Unconventional oil and gas chemicals and wastewater-impacted water samples promote adipogenesis via PPARγ-dependent and independent mechanisms in 3T3-L1 cells

Unconventional oil and natural gas (UOG) operations have contributed to a surge in domestic oil and natural gas production in the United States, combining horizontal drilling with hydraulic fracturing to unlock previously inaccessible fossil fuel deposits. >1000 organic chemicals are used in the production process, and wastewater is produced following injection and for the life of the producing well. This wastewater is typically disposed of via injecting into disposal wells for long-term storage, treatment and discharge from wastewater treatment plants, and/or storage in open evaporation pits; however, wastewater spill rates are reported at 2–20% of active well sites across regions, increasing concerns about the environmental impacts of these wastewaters. This study assessed adipogenic activity (both triglyceride accumulation and pre-adipocyte proliferation) for a mixture of 23 commonly used UOG chemicals and a small subset of UOG wastewater-impacted surface water extracts from Colorado and West Virginia, using 3T3-L1 cells and a peroxisome proliferator activated receptor gamma (PPARγ) reporter assay. We report potent and efficacious adipogenic activity induced by both a laboratory-created UOG chemical mixture and UOG-impacted water samples at concentrations below environmental levels. We further report activation of PPARγ at similar concentrations for some samples, suggesting a causative molecular pathway for the observed effects, but not for other adipogenic samples, implicating PPARγ-dependent and independent effects from UOG associated chemicals. Taken together, these results suggest that UOG wastewater has the potential to impact metabolic health at environmentally relevant concentrations.

Comparative analysis of financial Production Sharing Contract (PSC) cost recovery with PSC gross split: Case study in one of the contractor SKK Migas

This research explores two schemes of oil and gas Production Sharing Contract (PSC). First, Cost Recovery (old scheme) that the investor earned a production cost refund. While the second scheme is Gross Split (new scheme), which is the production sharing system without cost of recovery. The Gross Split scheme was implemented by the Minister of Energy and Mineral Resources, Ignatius Jonan in early 2017 in response to the concerns of People's Representative Council (DPR) Commission VII that the Cost Recovery scheme was no longer profitable for the government. Thus, there should be a new one which is better, beneficial, yet attractive to investors to entrust Indonesian oil and gas business. The study was conducted at PT XYZ, the first PSC Company which implemented Gross Split scheme after its contract period under the Cost Recovery scheme ended in January 2017. The study focuses on two cases of offshore oil and gas development projects, X and Y, by using economic capital budgeting indicators, such as NPV, IRR, and Payback Period. In addition, oil and gas fiscal calculations are done equally with Net Contractor Take and Government Take, then analyzed the sensitivity of the variable that affects its economic project. The results showed that Gross Split scheme projects have better NPV and IRR values than the Cost Recovery scheme. As for Payback Period, both schemes had the same value. This means that the economic value of Gross Split scheme project is better. However, it turns out that the Government Take value is much smaller. While from the sensitivity analysis, the amount of production and price is very sensitive to both economic projects as well as the widespread on the Gross Split scheme. It can be concluded that the PSC Gross Split scheme will benefit the Contractor if it is accomplished with good planning of WP&B (Work Program & Budgeting), accurate calculation of oil and gas reserve, timely development of oil and gas facilities, along with the efficient use of production costs. For the government, although the income is smaller, on the other hand, it is no longer burdened with cost recovery of production which has been disrupting state's finance in the development of exploration and domestic oil and gas production.

Energy Transition and Rural Hospital Closure: Leaving Rural America Behind?

Starting in the 2000s, the U.S. energy system entered a period of rapid transition, with a marked decline in coal extraction, a boom in domestic oil and gas production, and increased deployment of renewable sources. Economically marginalized rural populations tend to have less access to health services than their metropolitan counterparts and stand to make significant gains from this energy transition. However, during the 2010–2015 period, several rural hospitals closed. In this analysis, we ask how the energy transition effects the likelihood of rural hospital closure. Models suggest that expanding energy production does not reduce the chances of a hospital closure, raising important questions of energy justice.

Economic cost of China’s oil import: Welfare estimation for 2001–2015

This paper estimates the economic cost incurred by China’s foreign oil dependence during 2001–2015. By categorizing the cost into three different welfare components, namely wealth transfer, potential output loss, and disruption loss, our results show the annual welfare loss is between $7.58 billion to $168.24 billion (constant 2000 US dollars), or equivalent to between 0.57% and 3.93% of China's GDP. Wealth transfer is the dominant component, contributing 71% of the cost during the whole research period. As a result of international oil price fluctuation, disruption loss contributes 22% of the welfare loss. The other 6% is attributable to the decline of China’s potential output. Taking 2015 as the benchmark, sensitivity analyses show that international oil price change brings asymmetric impacts, i.e., a 10% rise of crude oil price rise will increase the cost by $4.08 billion while the same extent of price drop reduces the cost by $4.72 billion. Every barrel of additional domestic oil production reduces the welfare loss by $16.91, while the conservation of a barrel saves $20.50. Based on the results of this study, policy relevant insights are provided with respect to supply side and demand side.

Oil supply shocks and the U.S. economy: An estimated DSGE model

We develop and use a medium-sized DSGE model of the U.S. economy to evaluate how U.S. real GDP responds to oil price movements that originate from global oil supply shocks. The core of the model is a standard macroeconomic DSGE framework that includes nominal and real frictions. The model includes oil as an input in multiple domestic sectors (consumption, intermediate goods, and transportation services). We include a domestic oil production sector for the United States to reflect the recent development in shale oil technology. The model also captures international trade in goods and oil. The model parameters are set through a combination of calibration and Bayesian estimation using quarterly data for 1991 through 2015. Baseline estimation of the model finds the elasticity of U.S. real GDP with respect to an oil price shock of − 0.015, which is among the less elastic estimates in the literature. Using the model to conduct counterfactual analysis, we find that decreasing steady state U.S. oil consumption substantially reduces the response of real GDP to oil prices. Increasing U.S. domestic oil production only modestly reduces the response of real GDP to oil prices.