Study Set 1

Question 1

What is the standard measurement of crude oil?

Answer 1

Barrels

Question 2

What are the three main fluids that make up hydrocarbons?

Answer 2

Gas, Oil, and Water

Question 3

What are the five components that describe the life cycle of an oil and gas E&P company?

Answer 3

exploration, land acquisition, drilling, production, and abandonment

Question 4

What is the overall objective of the E&P production department?

Answer 4

Delivering maximum production with ultimate optimum recovery of oil and gas reserves at minimum cost

Question 5

What is the standard measure for gas volume at the wellsite?

Answer 5

MCF

Question 6

What is a common disposition of natural gas produced?

Answer 6

1. Piped and used on another lease operations
2. Flared into the atmosphere due to economic marketing conditions
3. Sold to third parties or affiliate at contract prices

Question 7

What is the primary component of dry natural gas?

Answer 7

Methane

Question 8

What is the primary difference between sour crude and sweet crude?

Answer 8

Sour crude contains sulfur

Question 9

What factors into the pricing of crude oil and condensate?

Answer 9

1. Location
2. Current economic conditions
3. Physical quality

Question 10

What is a British Thermal Unit? (BTU)

Answer 10

Amount of heat to raise the temperature of one pound of water one-degree Fahrenheit

Question 11

What chemical is added to gas before it is delivered for fuel in homes or occupied facilities?

Answer 11

Mercaptan

Question 12

According to the inorganic theory, why are hydrocarbons found in the subsurface?

Answer 12

They were part of the Earth’s original formation

Question 13

What are the three distinct and dependent business sectors that comprise the oil and gas value chain?

Answer 13

Upstream, Midstream, and Downstream

Question 14

What sector of the oil and gas industry is related to your local service station?

Answer 14

Downstream

Question 15

What is a company called that produce oil from a well, transport the oil to the refinery, and manufactures crude oil into various products?

Answer 15

Integrated

Question 16

Which oil and gas sector consists primarily of gathering facilities and transmission pipelines?

Answer 16

Midstream

Question 17

What is an organization called that is owned exclusively by the government?

Answer 17

National Oil Company (NOC)

Question 18

What is the company called that deals exclusively in oil and gas exploration and production activities?

Answer 18

Independent

Question 19

What attestations by the company’s external auditors are required by the SEC under the SOX act of 2022?

Answer 19

The Company’s effectiveness of the system of internal control over financial reporting

Question 20

What are three US EPA regulations that impact the oil industry?

Answer 20

Safe Drinking Water Act
Oil Pollution Act
Migratory Bird Treaty Act

Question 21

What drilling based fluid has the greatest environmental impact of disposed onsite?

Answer 21

Oil-based mud

Question 22

What do recordable work-related injuries include?

Answer 22

Death
Days away from work cases
Restricted activity or job transfer

Question 23

What is the leading cause of serious injuries in the oilfield?

Answer 23

Vehicle accidents

Question 24

What is the main cause of maritime tanker accidents?

Answer 24

Human error

Question 25

What is a skimmer?

Answer 25

Huge vacuum cleaner to clean oil floating on top of the water

Question 26

What are the three main elements to reduce risk to workers and the environment?

Answer 26

Designing safe equipment Enforcing controls Wearing protective gear

Question 27

What items are considered personal protective equipment (PPE)?

Answer 27

Hard Hat Flame Resistant Clothing Earplugs Boots

Question 28

Where does safety and incident prevention start within an organization?

Answer 28

Executive and senior management

Question 29

What are two common methods to check for and prevent job site hazards?

Answer 29

Preparing a job safety analysis and inspection checklist

Question 30

What is the purpose of a blowout preventer?

Answer 30

To prevent uncontrolled release of gas and fluids after pressure control systems have failed

Question 31

List the categories of oil and gas reserves

Answer 31

Proved Developed Proved Undeveloped (PUD) Unproved Probable Unproved Possible

Question 32

Describe Ultimately Recoverable Reserves

Answer 32

All petroleum that remains and is expected to be producible including what has not yet been discovered

Question 33

Oi55.122 provides guidance on whether to expense or defer exploratory well costs when the well's success is not determinable at the time drilling of the well has been completed. What is a factor not to be used to support the deferral of expensing the drilling costs?

Answer 33

Management is optimistic of increases to commodity prices next year, which will allow for additional drilling in the field

Question 34

What is an indication of impairment for an undeveloped property?

Answer 34

A dry hole has been drilled on the property and there are no firm plans to continue drilling

Question 35

Under SFAS 121 what would not be considered an indication of impairment?

Answer 35

Due to a busy hurricane season the production of an offshore field was shut-in for 2 weeks during the summer