Midterm LSU Flashcards
(12 cards)
Variables that move oil prices?
Consumption, production, inventories, spare production capacity, geopolitical risks, market variables.
When was the first well?
1859
Different type of petroleum engineers?
Drilling engineers, reservoir engineers, petro-physical, and production engineers
Three type of oil companies?
International oil companies (IOC’s), national oil companies (NOC’s), NOC’s with strategic & operational autonomy
Mineral owner, party granting lease
Lessor
Petroleum company or other group, party obtaining lease
Lessee
A lessor grants exclusive rights to the lessee in exchange for something usually money.
Consideration/bonus
A share of production received by lessor
Royalty
Fee paid each year if no drilling to prevent automatic lease expiration during a certain time period
Delay rental
Law required obligations on the lessee
Implied covenants
In lease for development, agreements between lessor and lessee, replace implied covenants
Expressed convenants
Historically the lessee has 100%, and is the operator.
Working interest
