Understanding the Economics of the Oil and Gas Industry - Part 1

Ғылым және технология

The goal of any commercial organisation is to maximise value for its owners, but often the understanding of value is diffuse and diverse.
Oil and gas reservoirs all vary in composition, all contain a minestrone soup of components and pseudo-components. These are processed into sales gas, LNG, LPG, NGLs, condensate, stabilised crude and onwards into petrochemicals and refinery products. The challenge is to maximise the value of these, first in design and then in operation. But do we know how much capital we should invest to generate an extra tonne of propane? To save 100 kW of power? Having comparable market values at our finger tips and understanding their capital equivalents is at the heart of maximising profits, shareholder returns and chasing the share price higher.

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