E P Of Oil And Gas - 831 Words

3.0 Main Risks EP of oil and gas usually considers as a high-risk business that may have a big impact on the stakeholders of the project. Studies have shown that geological concepts are not absolute when it comes to determining the reservoir seal, structure, and hydrocarbon charge (Suslick et al., 2009, p.30). The engineering parameters at the stage of development and production possess vast amounts of uncertainties regarding critical variables such as production schedule, infrastructure, operational costs, quality of oil, and characteristics of the reservoirs. This suggests that the primary stakeholders who will be affected are the owners of the of the EP company. In case a firm is unable to find resources that are economically viable after investing the high amount of resources, it implies that owners of that company will have to incur a huge loss since the invested funds cannot be recovered (Suslick et al., 2009). Potential investors will also be reluctant of investing in such a company when there are clear signs that the management has not been able to find what it was looking form and the company may have a difficult time trying to convince financial institutions to give it loans or invest in the company. The primary source of these uncertainties is the geological models as well as engineering and economic models that are exposed to high-risk scenarios of decision-making. Research have shown that most of the risks are associated with the fact that there is noShow MoreRelatedThe Oil And Gas E P Industry1556 Words   |  7 PagesThe oil and gas EP industry started back in 1859, when the Pennsylvania Rock Oil Company of New York regrouped as Seneca Oil Company, found the first ever marketable oil near Titusville, Pennsylvania. Edwin Drake, a former railroad man, discovered a great amount of oil in his well that was refined into kerosene, a petroleum product. 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Considering so many MBE equations that have been presented by different researchers, we are going to be using raw data from oil fields to with researchers developed material balance equation to calculate the OGIP in the reservoirRead MoreCase Analysis : The Global Oil And Gas Industry Essay1462 Words   |  6 Pages Case Analysis: The Global Oil and Gas Industry A. Problem Summary The oil and gas industry is prominent for our everyday lives. The industry helps create products such as clothing, cosmetics, asphalt, rubber, gasoline, plastic, medicine, and more. The industry also has strong impacts on politics, national security, and international confrontations. Because the oil and gas industry is so prominent, crude oil and natural gas are said to be the most closely watched commodity prices around the world